Principles of Marketing: A Comparison of Lucozade and Red Bull

This report discusses the principles of marketing and how they are applied by Lucozade and Red Bull. It compares their target markets and marketing mix strategies, including product, price, promotion, and place. The report concludes that Red Bull has been performing better in the market and has successfully applied these marketing mix strategies.

Principles of Marketing
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TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Comparison of target market:......................................................................................................3
The marketing mix:......................................................................................................................4
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................1
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INTRODUCTION
Principles of marketing help marketer to understanding the key element which effect the
marketing strategy of the company, these key element include product, price. Promotion and
place. These feature of the marketing mix allow company to understand how they can use these
strategy for the purpose of marketing (Thabit and Raewf, 2018). This study is based on Lucozade
energy drink and Red Bull energy drink both the company use principles of marketing to
understand their potential market. In this report we will discuss target market of Lucozade and
Red bull. Later we will discuss and compare four mix of marketing of both the company to
clearly understand the principle of marketing.
MAIN BODY
Comparison of target market:
Lucozade drink: target market means the location or area where a company wish to sell their
product or service, every business sector have their own market who they target. Target market
simply means if the car company want to sell their cars then they will target car buyers not
shampoo buyers, this is understanding the target market where the company actually find the
right customer. The Lucozade drink target their market after segmenting the customer base, this
company tend to divide their customer into various age group and according to gender. The
Lucozade have been targeting young age men who are approx. 18 to 39 age, the marketer of the
company only bid to those audiences (Išoraitė, 2016). The segmentation process of this company
allow them to segment those audiences who willing to better their lifestyle, the marketing
campaign of the company also target labour who want energy drink while working on a tough
day. In marketing, when the marketer segmented their audience according to the age, gender,
income level and taste and preference then they can easily target their audience. The Lucozade
have one of the most successful marketing strategies who win the target market. The company
know the details and in formation about the customer which include location and customer bases,
the market of the company use these information for the promotion of product to the right
customer in the right market.
Red Bull drink: Red Bull is one of the most successful energy drink provider company who
have effective marketing strategies to pull the customer. This company mainly target
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demographic which include age and gender of the customer, they mainly target teenagers or
young adult who remain enthusiastic throughout the day. The company segmented the market
according to demographic of the customer, they segmented 18 to 34 age group customers who
are mainly male. Red Bull also target sports persons and athlete who need energy in middle of
the game, the company use mono positioning process which allow to fulfil the demand of
customer. The target customer base of Red Bull are mainly those people who love fitness and
extreme sport. According to the geographic the company target urban and rural with the age 16
to 30 and as per demographic Red Bull target males and females who are at bachelor stage or
youth who are young and energetic. And as per the lifestyle, the company target high income
level group who are willing to spend good amount to improve their lifestyle and standard of
living. The company even target customer according to psychology, they understand the
behaviour of individual and target accordingly the target market.
The marketing mix:
Mix Lucozade energy drink Red Bull energy drink
Product The product of business play vital
role in the market. Product mix
means company shoe the uniqueness
features of the product to the target
market (Baker, and Hart, 2016).
These features fulfil the demand of
the customer in the target market.
The product mix of Lucozade energy
drink is show the feature which
attract the potential customer to buy
the drink. These unique features
include the satisfaction level which a
customer will experience and get
boost in the energy level. Company
successfully use product mix in
marketing of the product to the
market. Lucozade have one of the
The product mix of the marketing play
an important role in the success of Red
Bull energy drink. This company show
the uniqueness of their product while
promoting the product, ingredient in the
drink is very different from other
energy drink. This company is know for
sugar free energy drink provider,
product and its feature may be very
beneficial for company in promotion
but the successes of Red Bull energy
drink lies in the trend which is created
by youth. Trend helped the company to
boost their sales and increase the
lifestyle of youth who have been
drinking for energy. Red bull tend to
promote their product more better as
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most successful marketing strategy.
Lucozade may be using successful
product promotion strategies but
when is come to comparison the Red
Bull have better product promotion
strategy.
compared to Lucozade and other
energy.
Price Price means the rate which a
company offer to their potential
customer in the target market
(Hanssens, et.al., 2018). The market
of food and beverage product have
dynamic nature which means
company might lower the price for
increasing the sales, but Locuzade
energy drink never drop the price of
energy drink because they know that
energy drink may even survive the
worst market condition as it fall
under lifestyle category of the
customer in the market. Lucozade
use competitive pricing strategy to
keep the flow of product maintain in
the market, this company have brand
image and reputation in the market
which allow them to set price
accordingly to the demand of the
market. Lucozade keep their pricing
policy according to the demand of
the market which means if we
compare the performance of this
company with other energy drink
The price mix of the marketing is one
of the most important mix because this
is the reason why a company
manufacture goods and supply in the
market. The price mix of Red Bull
energy drink offer customer a
reasonable rate which fulfil the price
demand as well. Red Bull have high
value and reputation in the market
which means they can set the price of
the energy drink accordingly but still
company follow dynamic pricing policy
to fulfil the demand of the customer.
The competitors of the company can
not impact the sales of Red bull energy
drink as this company already well
established. Red Bull keep their pricing
dynamic as compared to other energy
drink provider, this company is well
know for its pricing strategy and have
been performing better then Lucozade
energy drink. The price of Red Bull
energy drink is reasonable for the
customer. The Red bull energy drink
usally cost 24.29 euro. It is very clear
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company such as Red bull then it is
very clear that Lucozade have
performed better in the target market.
The price of Lucozade drink is much
more higher as compared to red bull,
Lucozade energy drink have price
range between 30 euro to 50 euro.
The Lucozade energy original dink
cost around 33 euro as compared to
Red Bull which have 24.29 euro, it is
very clear that the Lucozade have
higher price as compared to Red Bull
energy drink.
that this company keep their price
reasonable for the customer as
compared to other energy drink
provider.
Promotion The promotion mix is the most
crucial part of the marketing mix,
without promotion marketing may
not have a meaning. Many business
organizations use their own
promotional strategies to the
customer in the market. The
promotion mix of Lucozade energy
drink is one of the most successful as
company use their marketing
strategies. This company use wide
range of marketing channels to
promote their product, in modern
world the company mainly use social
media for their product promotion.
The Lucozade have great influence
on the sales of their energy drink
after using social media platform for
The promotion mix of used by the Red
Bull energy drink is quite impressive,
this company use a attractive tagline for
their product promotion. Red Bull
knows that their customer is mainly
youths who more likely to use social
media to spend their time, so the
marketer of the company use social
media platforms for their product
promotion. This company not only use
social media and other kind of media
for their product promotion but this
company use various mega event for
their product promotion such as world
cup or Olympic games, people can see
various banners of the company which
help them to promote their product in
front of large number of audience. It is
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product promotion. Lucozade may
have great social media influence but
when it comes to comparison Red
Bull have been promoting their
product more better because they
have wide range of audience and
their popularity is much more then
any other energy drink provider.
very clear that Red Bull have benefit of
their brand name and image in the
market as compared to other energy
drink provider such as Lucozade.
Place Place means distributions strategies
which allow company to supply their
product in the market. Some of the
distribution strategies of Lucozade
energy drink is quite successful
because this company try to sell their
product in super market and grocery
store which have large number of
audience of regular basis. Lucozade
ensure that their supply of energy
drink will remain perfect to meet the
requirement of the customer in the
market. Distribution channels of this
company is quite effective as
compare to their competitors. This
best strategy for distribution of
product is used by Lucuzade is they
try to contact university and college
campus or canteen to sell or
distribute their product to the
potential customer. Distribution of
the product is very important but
Lucozade have done this part more
Place mix of marketing means where
the company want to sell their product,
it is very important for the company to
set their distribution strategy perfectly
to fulfil the demand of the potential
customer (Mayer, Melitz and
Ottaviano, 2016). The Red Bull have
unique distribution strategy which
allow them to sell their product, these
strategies include the company try to
provide refrigerators to the malls and
super market with label of company on
it which is easy and effective way of
marketing. And it become easy for
both, mall and customer to locate where
the energy drink is at. Red Bull have
habit of maintaining their inventory
which allow them to fulfil the demand
of the customer in the market. The
distribution chain of Red Bull is much
strong than other energy drink provider,
when it comes to comparison Red Bull
use various marketing strategy even in
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effectively as compared to Red Bull. the distribution of the product.
CONCLUSION
In this report we have discussed principle of marketing which include four main pillars
such as product, price, promotion and place. Later we have discussed target market of two
company and understand their performance in the market. At last we have discussed principle of
marketing mix and understand the four main pillars of marketing it is very clear that both the
companies have applied four P’s and Red Bull tend to have been performing better as compare to
Lucozade and have successfully applied these marketing mix.
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REFERENCES
Books and journals
Thabit, T. and Raewf, M., 2018. The evaluation of marketing mix elements: A case
study. International Journal of Social Sciences & Educational Studies, 4(4).
Išoraitė, M., 2016. Marketing mix theoretical aspects. International Journal of Research-
Granthaalayah, 4(6), pp.25-37.
Hanssens, et.al., 2018. Consumer attitude metrics for guiding marketing mix decisions.
In LONG-TERM IMPACT OF MARKETING: A Compendium (pp. 557-600).
Mayer, T., Melitz, M.J. and Ottaviano, G.I., 2016. Product mix and firm productivity responses
to trade competition. The Review of Economics and Statistics, pp.1-59.
Baker, M.J. and Hart, S. eds., 2016. The marketing book. Routledge.
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