Principles Of Marketing: Lucozade and Red Bull Comparison

This study compares the marketing strategies of Lucozade and Red Bull energy drink brands, including target market, marketing mix, and recommendations for improvement.

Principles Of Marketing
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Table of Contents
INTRODUCTION...........................................................................................................................3
FINDINGS.......................................................................................................................................3
Target market of Lucozade and Red Bull brands........................................................................3
Comparison of marketing mix of Lucozade and Red Bull energy drink brands........................4
Recommendations to Lucozade and Red Bull for improvements...............................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
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INTRODUCTION
Marketing refers actions of promoting and selling of products. This study is based on Red
Bull and Lucozade energy drink brand that provides variety of energy drinks in different flavours
and size (Deepak and Jeyakumar, 2019). The aim of this study is to know effectiveness of
marketing strategy and supporting brands in improving their performance. Red Bull has 39% of
market share and Lucozade has 17% market share. It will compare marketing mix and its 4 P’s
elements of both brands in order to know effective brand. Comparison of both brands help
customers in taking buying decision. It will also discuss different types of segmentations and
target market of both brands.
FINDINGS
Target market of Lucozade and Red Bull brands
Red Bull target people on the basis all types of segments such as: geographical, demographic,
behavioral and psychographic.
Geographical: Under this segment, it targets both domestic and international people of
both urban and rural areas. It targets people of 16-40 age groups (Camilleri, 2018).
Under this category, Lucozade targets young men with the age group of 18-30. It attracts global
people such as domestic and international as well.
Demographic: Under this segmentation, it targets both male and females. As per variety and
types of energy drink it target different type of people such as: for Red Bull energy drink it
targets young single people and for Red bull sugar free it target newly married couples (Red Bull
Segmentation, Targeting and Positioning, 2016). As per income group it targets high income
group of people such as students, employees and professionals.
Lucozade mainly targets young male and manual laborers who consume soft drink
instead of sport emerging product (Sparks, L. and Burt, 2017).
Behavioral: Under this segment, it targets hard core loyal people who are ambitious and want to
improve their by having energy drinks and sports drinks (Xiao and et.al., 2018).
In regard to Lucozade, it is found that most of its energy drink is being produced for
sportswomen, sportsmen and athlete and who is health conscious. In addition, it is found that
patients who are I hospitals also drink this for quick recovery and improving health.
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Psychographic: In this segmentation, Red Bull targets people with middle class and
upper class of people. As per the lifestyle, it targets people who are reformer and explorer.
It targets all income groups of people as most of its energy drink is affordable and some energy
drink is for middle and higher income group of people (Learning, 2020).
So, on the basis of above discussed target strategy of both brands, it can be said that Red
Bull is better and effective than Lucozade. The reason behind it is: it targets numbers of people
with wider age group, both local and international people, married and single people. Overall, it
can be said that Lucozade need to improve its marketing strategy in order to compete with Red
Bull and for attracting customers to the great extent (Roddy, 2018). It can also help out in
becoming the market leader and taking competitive advantages. It also shows reasons as why
customers prefer and choose Red Bull over any other energy drink.
Comparison of marketing mix of Lucozade and Red Bull energy drink brands
Marketing is known as an effective department of organization that plays a vital roles and
perform numbers of functions for helping out company in accomplishing goals. The main role of
marketing department is to promote products and services of company and attract customers for
buying products and services. So, from this, it can be said that marketing department is mainly
responsible for increasing sales and profit margin by attracting customers by making them aware
about effectiveness of products.
Marketing mix is one of the main strategies that is beneficial for both customers and
business. It consists of 4P’s that gives detailed information to customers regarding products that
company offers, pricing strategy, promotional strategy and prices from where they can get their
products. By comparing these 4P’s of 2-3 companies they can make better buying decision
(Warner, 2020). 4P’s of Red Bull and Lucozade energy drink brands will help customers in
taking decision regarding buying better drink products such as:
4P’s of
marketing
mix
Lucozade energy drink brand Red Bull energy drink brand
Product It refers items that are being offered by
companies for satisfying their needs.
Lucozade offers energy and sports
This brand offers variety of energy
drinks that includes: taurine, caffeine,
Vitamins B, sucrose, glucose and
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drink, glucose tablets and water bottle.
Its energy drinks is known as fast and
effective provider of energy to the body
and brain. It is available in numbers of
flavours.
others. It is mainly consumed by
sports people, workaholics and young
generation who want to enjoy their
party. Now it has came up with new
idea in which it provides sugar free
variant, Red Bull sugar free that
contains acesulfame rather than
glucose and sucrose (Coffie, 2020).
As compared to Lucozade, in the
context of products, it s better.
Price It refers the amount that customers
have to pay for products. It is found
that prices of this brand varies or
depend on the demand and number of
sellers. Most of its energy drinks are
being offered at lower prices and for
rest of products it uses competitive
pricing strategy (Dadzie and et.al.,
2017).
It has competitive pricing strategy for
some of its energy drinks. For some
energy drinks it uses premium pricing
and customers buy it because of an
effective quality and value.
Customers buy Red Bull drinks in
bulk rather buying it single in order to
save money.
Promotion It can be known as marketing
communication that helps company in
making customers aware about their
products. This brand mainly focuses on
a lot of board bill advertising and TV
advertising (Marketing Analysis of
Lucozade, 2014). The reason of using
traditional ways is to target all age
group of people. It believes that social
media is being accessed by only young
people and it limits older people. So, by
advertising its products in TV and bill
Organization of events and sponsors
are main strategy of promoting
products. Mountain biking,
motocross, surfing, staking are some
well know events that made it able to
becoming the market leader and well-
known brand in the market
(Lalaounis, 2020). It has its own
merchandise stores online as well as
magazine for sports person.
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board it makes aware to all age group
of people.
Place It refers access and specific place from
where people can get or buy products
and services. It offers and allows
customers to get products from minor
as well as major stores. Along with
this, it provides online delivery as well
for satisfying changing customers’
needs and saving their time and cost
(Comeforo, 2017). Energy drink of this
brand is available in retail outlets such
as: shopping malls, supermarkets,
hypermarkets and others.
It has vast distribution channels and
its energy drinks are available at
convenient locations as like Lucozade
brand such as: supermarkets, night
clubs, retail outlets, bars, casinos and
convenience stores. Along with this,
it offers its products online as well.
So, on the basis of above discussed marketing mix of Red Bull and Lucozade brand, it can
clearly be said that Red Bull is better than Lucozade. Customers prefer Red Bull and it is the
widely used energy. It is being used for several purposes. As compared to Lucozade, Red Bull
makes use of effective promotional strategies that grab attention of customers and influence them
for buying energy drinks of Red Bull
Recommendations to Lucozade and Red Bull for improvements
On the basis of above discussed marketing mix and target strategy, it can be suggested to
Lucozade brand that it should focus on making use of effective promotional strategies. It is
limited to traditional ways of promoting products so; it should focus on promoting its energy
drinks by modern ways like developing events, digital marketing and others. It can be
recommended to Red Bull brand that it should focus on lowering its prices by which all income
group of people can afford and buy its drinks.
In regard to target market strategy, it can be suggested to Red Bull brand that it should focus
on targeting lower income group of people along with middle and high income group of people.
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Whereas, it can be suggested to Lucozade that it should focus on producing sugar free and other
energy drinks by which it can target all age group of people and can increase sale.
CONCLUSION
From above discussion, it has concluded that marketing mix strategy plays a vital role as it
helps customers in knowing about products and services of companies and taking better
decisions accordingly. It has further compared 2 energy drink brands on the basis of 4P’s of
marketing mix in order to selecting better brand. It has discussed effectiveness of segmentation
and targeting strategy and ways as how it helps companies in attracting customers and increasing
sales. It has further recommended some marketing strategies to energy drink brands by which
they can attract numbers of customers and can increasing its profit margin as well.
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REFERENCES
Books and journals
Camilleri, M.A., 2018. Market segmentation, targeting and positioning. In Travel marketing,
tourism economics and the airline product (pp. 69-83). Springer, Cham.
Coffie, S., 2020. Positioning strategies for branding services in an emerging economy. Journal of
Strategic Marketing. 28(4). pp.321-335.
Comeforo, K., 2017. Making sense of Red Bull's marriage equality discourse on
Facebook. Advertising & Society Quarterly. 18(2).
Dadzie, K.Q. and et.al., 2017. How firms implement marketing strategies in emerging markets:
An empirical assessment of the 4A marketing mix framework. Journal of Marketing
Theory and Practice. 25(3). pp.234-256.
Deepak, R.K.A. and Jeyakumar, S., 2019. Marketing management. Educreation Publishing.
Lalaounis, S.T., 2020. Strategic Brand Management and Development: Creating and Marketing
Successful Brands. Routledge.
Learning, L., 2020. Case Study: Red Bull Wins the “Extreme” Niche. Introduction to Marketing
I (MKTG 1010).
Roddy, M., 2018. Promotional Marketing.
Sparks, L. and Burt, S., 2017. Identifying and understanding the factors that can transform the
retail environment to enable healthier purchasing by consumers. Edinburgh: Food
Standards Scotland.
Warner, D., 2020. Segmentation: The Forgotten Marketing Segment?.
Xiao, C. and et.al., 2018. Characterizing adversarial examples based on spatial consistency
information for semantic segmentation. In Proceedings of the European Conference on
Computer Vision (ECCV) (pp. 217-234).
Online
Red Bull Segmentation, Targeting and Positioning. 2016. [Online]. Available through <
https://research-methodology.net/red-bull-segmentation-targeting-positioning/>
Marketing Analysis of Lucozade. 2014. [Online]. Available through <
http://expertresearchers.blogspot.com/2013/01/marketing-analysis-of-lucozade.html>
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