Product Place Price and Promotion

This report explores the marketing strategies used by Redbull and Lucozade, including target customers, product and brand value, pricing strategies, channel management, and promotion strategies. It highlights the importance of marketing in achieving business objectives and building profitable relationships with customers.

PRODUCT PLACE PRICE AND
PROMOTION

EXECUTIVE SUMMARY
Marketing is an important business function which coordinates with different functions
of the business in order to accomplish organisational objectives. Marketing is more than just
promoting the goods and services to the target customers but it starts right from the production
functioning to the point of sales. The chosen organisation is Redbull and Lucozade which
focuses for delivering energy drink to the customers. By using the marketing mix and
communication channels it promotes its goods and services to the target customers. This report
covers different marketing strategies used by Lucozade and Redbull in order to engage with the
target customers and make profitable relationships.

Table of Contents
EXECUTIVE SUMMARY ............................................................................................................2
INTRODUCTION...........................................................................................................................4
TASK ..............................................................................................................................................4
Target customers of Redbull and Lucozade ..........................................................................4
Use levitt's model for determine the product and brand value of Redbull and Lucozade......4
Determine the pricing strategies of Lucozade and Redbull....................................................6
Determine channel management of Redbull and Lucozade ..................................................7
Promotion strategies of Redbull and Lucozade .....................................................................7
CONCLUSION...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Marketing is the process of engaging with target in order to accomplish business
objectives and make profitable relationship with them. Business uses marketing for developing
market offerings and promoting the goods and services to the target customers. In the context of
the company Lucozade and Redbull which are the global leader for rendering the product ranges
energy drinks to the target customers. To developing strong customer base it uses different
marketing approaches in order to engage with the final prospects ad make profitable relationship
with them. This report covers marketing strategies implemented by Redbull and Lucozade, it
covers the 4P's of marketing, target customers, the product and marketing offerings of the
company, pricing strategies used and the promotional activities of the company in order to
communicate to the target customers (Chernev, 2020).
TASK
Target customers of Redbull and Lucozade
Redbull render energy drinks which anybody can drink to boost he energy. But Lucozade
offers energy drinks which focuses on rendering energy drinks to the customers who are highly
active in sport. The target customer of Lucozade focus on the youth segment of the population, it
focuses on the age group of age from 18-25. Lucozade involves in demographic segmentation of
the target customers which involves segmenting them on the basis of age, eduction, income. By
looking at these demographic factors Lucozade produces its goods on the basis of these factors.
Lucozade focuses on delivering energy drinks to the youth segment who active and take part in
recreational and sport activities. which Whereas Redbull focuses on segmenting the consumer
market on the basis of demographic and psychographic factors. It involves dividing the customer
segment on the basis of lifestyle pattern of the customers. As Redbull focuses on the youth
segment of the population who believe in being energetic and focussed and busy in performing
day to day work (Davis, 2017).
Use levitt's model for determine the product and brand value of Redbull and Lucozade
Levit model of structure defines the changes that needs to be taken place in order to
develop the product of the company. For developing a product people, structure, task and
technology are needed for product development.

Task: Task defined by the purpose which is related to the product development, Redbull and
Lucozade offers the energy drink by rendering quality products and accomplishing
organisational objectives of increasing profit goals and sales margin.
People: People is defined by the customer segment of the company. The company focusses on
the youth segment from the age group of 18-25. Redbull and Lucozade promises to provide
energy drinks to boost the stamina and give instant relaxation. To analyse the customer segment
of the market is very crucial as it helps to defines customer who the company is going to target.
Structure: Structure is defined by all the ingredients in a product, it completely defines how the
product look like. Redbull offers products in different variants like sugar free, original, red,
blueberry, total zero. In accordance to the current trends where people are more focussed about
managing their diets and get conscious about their body. With this change in the market trend,
Redbull focus on producing energy drinks which are sugar free and zero diet. Whereas,
Lucozade offers products in the ranges of pink lemonade, Caribbean crush, wild cherry, apple
blast, pineapple punch (Farquhar, 2017).
Technology: Technology is determined by the use of technological advanced tools in
production functions. Redbull and Lucozade uses the latest technology like cloud based
technologies in order to achieve efficiencies in the business functions. Cloud based technologies
helps to record necessary information of the company where the company does not have to
develop physical units for data storage. Taking cloud based services takes the business to next
level where all business transaction are transacted through internet platforms. Redbull and
Lucozade both uses labour and capital intensive technologies for production purpose.
BASIS LUCOZADE REDBULL
Shape They serve energy drink in plastic
bottles which are eco friendly in
nature.
Redbull serves drinks in cans which
can be easily trashed.
Packaging It offers products in bottles by
promoting the idea of recycling bottles
for organisational purpose (Kamps and
Schetter, 2018).
It offers products in cans in order to
which brings the idea of pocket
friendly and where customers can
easily can effortlessly carry anywhere.
Colour scheme Lucozade offers products in colour inn Redbull offers product in colour

accordance to the flavours offered by
the company. Different vibrant colour
attracts customer to purchase the
products.
ranges like red and blue. The outside
packaging of the product, it shows the
assign of bull to represent sign of
energy.
Determine the pricing strategies of Lucozade and Redbull
The pricing strategies used by Redbull and Lucozade involves price skimming and
market penetration. Market penetration is the pricing strategy used by Lucozade and Redbull in
order to acquire market share (Kerrigan, 2017). By market penetration sit offers its products at
lower prices to influence the customers to purchase the products of the company. Low prices
often influences the customers to tale services of the company. Redbull and Lucozade focuses on
delivering the value to customers at low prices. The other pricing policies used by Lucozade and
Redbull are value based pricing and competitive pricing. Value based pricing involves analysing
value perceived of the customers. The company then sets the prices of the products in
accordance of customer value. Redbull and Lucozade also follows competitive pricing strategies
which involves scrutinising all the policies which are determined by competitors and develop
effective pricing policies (Kingsnorth, 2019). By following the pricing policies implemented by
competitors helps to determine that how competitors products are valued and their positioning in
the market. Redbull and Lucozade follows the competitors pricing policies in order to
accomplish market share goals.
Figure 1: Pricing of RedBull UK

Figure 2: Pricing of Lucozade UK
Determine channel management of Redbull and Lucozade
Channel management is defined by using sales and marketing channel used in order to
communicate to the final customers. Redbull and Lucozade formulates easy supply chain
management in order to deliver value to the end customers. Redbull and Lucozade uses the
supply chain by choosing supplier who are avail raw material of the final customer within
limited time and funds. Redbull and Lucozade uses different intermediaries and retailers so that
customers are able to access the services of the company from different locations (Moorman, and
et.al., 2019).
Promotion strategies of Redbull and Lucozade
Promotion is determined by effectively communicating organisational objectives to the
target customers. Lucozade and Redbull uses different communication channels in order to
communicate the delivering value to the final prospects. With the increasing technological
advancement, where people are using internet platforms in a large extent. Different online
marketing channels used by includes digital marketing, search engine optimisation. The
company also indoor and outdoor advertisement, mail media advertisement in order to engage
with the target customer and make profitable relationships with them. The companies focuses on
expanding the customer base through the internet platforms as it helps to connect large number
of customer with just a click (Mothersbaugh, Hawkin and Kleiser, 2019). Redbull and Lucozade
uses social media platforms like Facebook, Instagram by creating social accounts and uploading
pictures of the market offerings so that target customer are well informed about the marketing

offerings of the company. In the advertising campaign of Redbull, it shows the message of
giving wings to the customers which symbolises strength and boost stamina (Park, 2020).
CONCLUSION
Thus, marketing an effective tool to which helps to deliver the value to the final
customers. It helps to develop effective market offering which satisfy market demand and
business growth. The marketing department of an organisation formulates different marketing
strategies in order to accomplish business growth and success. Marketing helps to develop
effective stakeholder relationship which develop a brand image and goodwill in the market
place. Marketing is the important tool used by business to take the market offerings to the end
customers to end customers. Business uses marketing functions to deliver the value to the need
customers and accomplish business objectives and goals.

REFERENCES
Books and journals
Chernev, A., 2020. The marketing plan handbook. Cerebellum Press.
Davis, J., 2017. Measuring marketing. De Gruyter.
Farquhar, J., 2017. Marketing financial services. Macmillan Education UK.\
Kamps, I. and Schetter, D., 2018. Performance marketing. Springer Fachmedien Wiesbaden.
Kerrigan, F., 2017. Film marketing. Routledge.
Kingsnorth, S., 2019. Digital marketing strategy: an integrated approach to online marketing.
Kogan Page Publishers.
Moorman, C., and et.al., 2019. Challenging the boundaries of marketing.
Mothersbaugh, D. L., Hawkin, D. I. and Kleiser, S. B., 2019. Consumer behavior: Building
marketing strategy. McGraw-Hill Higher Education.
Park, S., 2020. Marketing management (Vol. 3). Seohee Academy.