Principles of Marketing: Analysis of Lucozade Energy and Red Bull

This report analyzes the marketing principles and strategies of Lucozade Energy and Red Bull. It compares their target markets, products, pricing strategies, distribution channels, and promotional activities. The findings highlight the differences and similarities between the two companies in terms of marketing practices.

Principles of
Marketing

EXECUTIVE SUMMARY
The report provide analysis on marketing principles and its role in achievement of business
objectives. Further 4Ps of marketing mix have an immense importance in creating effective
position within the industry are also discussed. Lucazade Energy and Red Bull are the companies
of soft drink which are compared on the basis of principle of marketing. The findings of the
companies are done on basis of secondary data and are compared with that reference, both
companies use various methods of promotion but difference in customer’s priority in market.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
FINDINGS.......................................................................................................................................4
Comparison on the basis of Target Market............................................................................4
Comparison on basis of product.............................................................................................5
Comparison on the basis of Price...........................................................................................5
Comparison on the basis of Place...........................................................................................6
Comparison on the basis of Promotion..................................................................................7
CONCLUSION and Recommendations..........................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Marketing includes selling, advertising and all the activities that a company undertakes to
promote its product in a certain market. It is a process that seeks to match a firm's product or
services with demand and desires of its targeted customers (Rasul, 2017). There are 4Ps in
principles of marketing product, place, promotion and price which are the vital need in selling of
the product (Understanding the Marketing Mix Concept – 4Ps, 2020).
Lucozade Energy is a soft drink company which is created in 1927 by Newcastle
pharmacists with name of “Glucozade” and sold to British pharmaceuticals company Beechman
in 1938.
The other organisation chosen for report is Red Bull, an energy drink firm of Australia,
introduced in 1987. currently it has highest market shares of energy drink in the world.
FINDINGS
Comparison on the basis of Target Market
Target market for Lucozade energy and Red Bull refers to the group of potential
customers for their products, it is done on basis of buying power of customers, demographic and
income (Sudari and et. al., 2019). Lucozade Energy drink target the customers of 18-30 years of
age and who are basically health conscious whereas Red Bull focuses on fun-loving people and
have sports spirit. The comparison of both the companies is given below on the basis of their
target market:- Lucozade Energy targets customers between the age of 18 to 30 and focuses on offering
quality of products to attract these targeted consumers. On other hand Red Bull target
customer between the age of 18-34 years e who have high sports spirit.
 Lucozade Energy is facing tough competition from Powerade and Gatorade due to lack
of awareness among customers. Red Bull is facing stiff competition from small
companies apart from Monster and Canard Street which are offering cheaper drinks with
quality.
 In terms of occupation and profession company targeting audience beyond from sports
backgrounds. On the contrary Red Bull focuses on people from sports professions.
 This firm focuses on one specific product and aim to perfect their drinks, offer different
flavours for different customer's need. Red Bull invest more in R&D and offer healthy

products and gain increasing number of health conscious consumers (Kim and Kim,
2018).
Comparison on basis of product
The core benefit provided by the company's product is their packaging, symbols,
services, slogan that plays a vital role in creation of market position and providing satisfied
services to their customers. It is a physical offering by company for which customers are ready to
pay (Contreras and Ramos, 2016). In terms of respective organisations comparison between their
products are as under:
 The core products of Lucozade Energy consist of energy drinks, sport & Lucozade sport
hydro active with classic flavours of tropical, orange, lemon and new wild berry. On the
other hand, core product of Red Bull includes- energy drinks, mixed drinks and cocktails
made by non-alcoholic ingredients.
 The company's core message is “Lucozade aids recovery” ,the brand is available in over
15 countries around the world (Gupta and Nair, 2020). On the other hand, core message
of Red Bull is “giving wings to people & ideas”. It makes it inspiration brand that
connects two different types of customers they are professional athletes and fun loving
people.
 The brand personality of Lucozade is bold and dynamic with a spirit of “can-do” attitude
and “never-say-die” approach to life. Red Bull contains the brand personality of
excitement, courage and hyper- energy. The brand personality attracts the c
Comparison on the basis of Price
It is the value of goods and services pays by customers in monetary forms. The pricing
strategy of product is done with the aim of making profit (Frost and Strauss, 2016). Price of
Lucozade energy drink is high comparing to market average price and so many consumers go for
substitute product whereas, price of Red Bull product is also high but it remains in high demand
always because of its quality and image. Some of comparison on basis of price of both
organisation is discussed below:
 The pricing strategy adopted by Lucozade Energy is competitive pricing. Lucozade
fluctuates their prices according to prices of their competitors. For instance, company
rising their prices according to increment in competitor’s prices as well as declining
values of products when competitors reduce their product costs. On the other hand, Red

Bull uses premium pricing strategy due to high requirement of its energy drinks by sports
personnel. Company has huge brand image because of its quality products so they don't
need to minimise their prices.
 Earlier the pricing strategy of Lucozade was market penetration. Company setts higher
prices for their quality products because of its high brand reputation within the industry.
This type of pricing policy used by company for generating maximum profits as much
possible . But, due to global recession company uses cheaper prices and changed their
pricing strategy from penetration to competitive pricing. This is effective for surviving in
economic recession period as well as increasing the sales of firm. On the other hand Red
Bull uses low pricing strategy for selling its products in bulk. Usually company uses
exclusive prices for its premium customers which builds brand loyalty and trust among
consumers. At the same time people also like to buy their products with discount on bulk
purchases. This is effective strategy for increasing sales and revenues of company. It is
also beneficial for consumers to save money on buying of 3 items on the cost of 2
products.
Comparison on the basis of Place
This component of marketing refers to the physical distribution of products and goods of
the company. It is important to choose effective strategies to display and place products where
consumers can see and informed about new and modified items of company (Hanaysha, 2020).
The comparison between physical distribution of Lucozade and Red-bull are described as
follows:
 Lucozade's Products are available in shopping malls, hypermarket and other outlets. On
the other hand Red-bull has mass market for display and sale its products . For instance
supermarket , retail, night clubs , bars etc.
 The products of respective firm are also available at online stores with home delivery
facility. It added a value in effective distribution strategies of company. On other hand
Red Bull has vast distibution network throughout the world. Company has retailers in
different countries that manages the sales maximisation and customer attention (Keegan,
2017).
 To increase sale of the product the company make its distribution channel effective in
terms of gaining more customers and increasing the sales and profit of business. This

reflects successful implementation of distribution strategies of business. While, Red
Bull faces delay in delivery of products due to lack of co-ordination between distribution
channel.
Comparison on the basis of Promotion
Promotion is a crucial component of marketing process & is a way of creating awareness
of the products in the market, customers need to be aware of the products existing in the market.
On basis of promotion in terms of Lucozade Energy and Red Bull comparison is discussed
below:
 For promotion Lucozade Energy use promotional campaigns and direct selling,
advertisement are also done through mass media (EB and Hernofika, 2017). On other
side Red Bull organize many sports events and sponsor teams to promote their products
at international level.
 In Lucozade Energy advertisement is also done through popular social sites like-
Instagram, Facebook etc. and internet to attract younger generation. On the other hand
Red Bull endorse various sports athletes and celebrities as well as also has a Red Bull
Art for promotion.
 In Lucozade Energy there is lack of awareness among customers in terms of product
which decreases the sale and profit also, it acts as threat for company and leads to tough
competition in market. On other side Red Bull invest more on effective promotion and
marketing of its products. For instance providing non-alcoholic and sugar free drinks in
order to take care about the health of its customers. which leads to raise the sales and
profits. This makes it easily to compete with its competitors and creates a leading
position within the industry.
CONCLUSION and Recommendations
Activities of business which a company use for promoting and selling off product or
services is termed as marketing. Lucozade Energy and Red Bull is compared on the basis of
target market, pricing strategies, place and promotion methods. Target market of Lucozade
Energy drink is the people who are health conscious on other side Red Bull focus on fun loving
people and provide refreshment. Lucazade Energy promote their product through campaigns and

advertisement on social media whereas Red Bull organise sports events for promotion. Red-bull
uses premium pricing strategies for its high quality products and lower pricing strategies for
selling items in bulk to achieve its target of rising profits. On the contrary Lucozade uses
competitive and penetration' pricing strategy to fulfil sales maximization objective.

REFERENCES
Books & Journals
Rasul, T., 2017. Relationship marketing and the marketing productivity paradigm. The Journal of
Developing Areas. 51(1). pp.423-430.
Keegan, W.J., 2017. Global marketing management. Pearson India.
Frost, R.D. and Strauss, J., 2016. E-marketing. Routledge.
Murphy, P.E., Laczniak, G.R. and Harris, F., 2016. Ethics in marketing: International cases and
perspectives. Taylor & Francis.
Sudari, S. and et. al., 2019. Measuring the critical effect of marketing mix on customer loyalty
through customer satisfaction in food and beverage products. Management Science
Letters. 9(9). pp.1385-1396.
Kim, M.S. and Kim, J., 2018. Linking marketing mix elements to passion-driven behavior
toward a brand. International Journal of Contemporary Hospitality Management.
Gupta, C.B. and Nair, R., 2020. Marketing Management, CB Gupta & N. Rajan Nair. Sultan
Chand & Sons.
Hanaysha, J.R., 2020. Marketing Mix Elements and Corporate Social Responsibility: Do they
Really Matter to Store Image?. Jindal Journal of Business Research. 9(1). pp.56-71.
Online
Understanding the Marketing Mix Concept – 4Ps, 2020 [Online] Available through:
<https://www.cleverism.com/understanding-marketing-mix-concept-4ps>/.
Illustration: Redbull soft energy drink in fridges in a small store in the UK
Source: Redbull soft energy drink in fridges in a small store in the UK,2020

Illustration: Lucozade Energy drinks bottles on display in supermarket shelves,UK
Source: Lucozade Energy drinks bottles on display in supermarket shelves,UK,2020