Comparison of Marketing Mix of Red Bull and Lucozade Energy

This report involves the 4ps of marketing mix and a detailed comparison between Red Bull and Lucozade Energy. Both the companies are offering products which involves energy drinks and flavoured drinks. The report involves various pricing, promotional, product and distribution strategies of both the companies and application of Levitt's Model and Aaker's brand personality framework.

Principles of
Marketing

Table of Contents
Executive Summary ........................................................................................................................1
INTRODUCTION ..........................................................................................................................1
MAIN BODY...................................................................................................................................1
Brands comparison 4 Ps Marketing Mix ...............................................................................1
CONCLUSION................................................................................................................................5
REFERENCES ...............................................................................................................................6

Executive Summary
This report involves the 4ps of marketing mix and a detailed comparison between Red
Bull and Lucozade Energy. Both the companies are offering products which involves energy
drinks and flavoured drinks. In addition to that, the company involves comparison of both the
companies marketing mix and how well both the organizations have applied these 4ps in their
operations. Moreover, the report involves various pricing, promotional, product and distribution
strategies of both the companies and application of Levitt's Model and Aaker's brand personality
framework. It also involves how each brand is applying these 4Ps and which brand has been
most successful in application of the 4Ps.
INTRODUCTION
Marketing is the process that involves all the activities performed by an organization in
order to promote and sell services to the customers. In addition to that, marketing mix refers to a
set of actions which is used by organizations to promote its services or products. The marketing
mix involves 4Ps in order to deal with price, promotion, product and place. In this report the
chosen organizations are Lucozade Energy and Red Bull. Lucozade Energy is one of the leading
sports energy based in UK with under 60% value share and bulk pack sales in soft drinks
whereas Red Bull is an Austrian based company selling energy drink in the world. It has become
the leading energy drink brand with 24.9%. market share with 7.5 billion cans sold in over 171
countries. This report involves the analysis of marketing mix for both the Red Bull and Lucozade
Energy.
MAIN BODY
Brands comparison 4 Ps Marketing Mix
Target Market : It is a marketing plan which involves target customer groups to whom the
companies want to sell their services and products. In order to develop a marketing plan, its
important to identify the target market. The selected companies in this report are Lucozade
Energy and Red Bull. Lucozade energy is a soft drink manufacturer whereas Red bull is also an
energy drink manufacturer selling energy drinks.
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Target Markets of Lucozade Energy:
It is a leading sports energy drink based in UK. The company plays an important role in
lifestyle of people and aims to provide better quality services and products to its customers in
order to fulfil customer demands. The age group they mainly sells its energy drinks involves
from 18 to 30. It sells energy and sport drinks to athletes and sportsperson(Ferrell, and Ferrell,
2020).
Target Markets of Red Bull:
The main target audience of Red Bull is males. The company also focuses on targeting
audiences such as bachelor persons, sportsperson, professionals, youth and athletes between the
age group of 16 to 30 years. It also sells its Soda to customers below the age of 16 and Zero
calories drink to middle-aged customers including females.
Product -
The main products that Lucozade mainly offers involves glucose-carbonated soft drinks
and the company always focus on developing its product categories whereas the Red Bull
provides carbonated energy drink and western taste(Iacobucci, 2021). The company's products
are developed in several countries and are popular over the world. In case of Red Bull, the
packaging is very plain with dark blue and silver metallic can with red bull logo whereas
Lucozade sells its products in a glass bottle with yellow cellophane wrap. The Red Bull portray
values which includes ideas, people and culture whereas Lucozade portrays “can-do” attitude and
independence of spirit. According to Aaker’s brand personality framework, Red Bull has an
energetic, courageous, outgoing and exciting personality whereas Lucozade Energy has a 'never-
say-die' approach to life. In context to Aaker's brand personality framework, the company
Redbull has an hyper-energetic, outgoing, courageous and exciting brand personality as compare
to Lucozade Energy the company need to boost its operations in order to compete in the market
and stand out among its competitors.
Levitt's model involves idea of a product as per the stratification level. It involves three
categories of product Core, actual and augment. The second level is the expected which involves
basic attributes and all the characteristics that a consumer expects. The third level involves
augmented product that exceeds consumer expectations.
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Levitt’s model of Lucozade Energy and Redbull
Lucozade Energy
Core : The company's core products
involves Energy flavours with
Apple Blast.
Actual: The company's actual
products involves energy drink and
glucose-carbonated soft drinks.
Augment: The company used its
Sports drink as part of is YES list
campaign where the consumers can
use Aurasma app to access
performances from musical artists.
Redbull
Core: The company's core product
involves Red Bull yogurt made up
little fat, Taurine, natural
ingredients and plenty of flavors.
Actual: The company's actual
products involves Red bull cola,
energy shots, sugar-free drinks and
Total zero drinks.
Augment: The company is running
on package drive adoption through
mobile game in order to increase
consumer engagement.
Price :
Price is the amount of money a consumer pays for a particular product or service. In case
of Red Bull, the company has positioned itself as premium pricing brand with 10% more price as
compared to its competitors whereas Lucozade Energy prices varies and depends on seller(Kaur,
2019). In context to Red bull, the company uses ''Premium Pricing'' strategies in order to boost its
sales whereas Lucozade Energy used penetration pricing strategy to boost its sales and attract
customers. When it comes to discounts, Red Bull offers discount codes and promo codes to its
customers whereas Lucozade Energy provide Black Friday Deals and Coupons.
Red Bull Lucozade Energy
The company has a large number of
competitors in energy drinks industry and
hence there pricing strategy is based on
The company pricing strategy is dependent on
its sellers and varies from charging different
prices for different products based on its sellers
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competitor pricing. Being a market leader in
energy drink industry, the company can charge
high prices for products and customers will
buy in any case.
The company charges premium prices as
compare to other energy drinks company due
to strong brand image.
The company in the UK market charges around
£22.50 for a pack of 24 cans.
and customers. The company is basically using
Price skimming strategy to attract customers
and boosts its sales.
In case of Lucozade, the company charges
according to the consumers demand and uses
price skimming method to attract new
customers but in order to charge premium price
like Redbull company need to work on its
brand image and providing quality products.
As compare to red bull, the company charges
£15.99 for a pack of 24 cans which is very less
as compare to the prices of red bull.
The Red bull uses various promotional methods including creating and sponsoring events and
attracting wider audience whereas in Lucozade, the company has launched a new multimedia
campaign which targets to reach 97% population by end of 2021. This campaign includes
promotion through social media, e-commerce etc.
Place (Distribution):
Place refers to the location where the company sells its services or products. In order to
sell its products the organization need to have a proper distribution channel. A channel of
distribution goes through a chain of intermediaries and businesses where the end consumer buys
a product or service(Mari, 2020). The distribution channel involves distributors, wholesalers,
retailers and internet. In context to Red Bull, the company's products are easily available in
grocery stores, supermarkets, nightclubs which resulted in increasing brand's value. In various
convenience stores, the products are kept along with its competitive products in order to give
consumer a choice to choose. The company's products are often stored in refrigerators to attract
customers whenever they go for grocery shopping. In addition to that its products are available in
single making or bulk packs with its presence in over 171 countries.
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In case of Lucozade , the company's products are sold online as well as minor stores. In case of
Channel of distribution, both the companies uses 'Long channel distribution' which involves
producer-wholesaler-retailer-consumer. This distribution channel works best for both the
companies.
Promotion :
Promotion involves information and details about the product or service a particular
organization is dealing in. It involves various details about the product line, brand and
companies. It includes promotion through advertising, publicity and public relations. The goal of
promotion is to understand why consumers should pay a certain amount or why consumers need
a particular product(Muminov, 2018).
In context to Red Bull, the company targets various sports personality and uses tagline such as
''Red Bull gives you wings''. It also spends a million of dollars on promoting their products and
uses various proper mix such as ATL, BTL and Digital channels for promoting their products
and creating awareness(Page and Connell, 2020).The company also focuses on various TV
campaigns to connect with customers. The company also focuses to attract huge youth customer
base and organize various sports events which includes Red Bull BC One, Red Bull Battle
Grounds etc. whereas Lucozade uses a lot of bill board advertising and promotes its products
through various TV advertisements. In addition to that consumers uses various marketing
campaigns to reach wider audience and advertisement techniques including social media, e-
commerce, online video and geo-targeted mobile advertising. The company has also introduced
new transparent bottle sleeves which can be recycled (Ružinská, 2018).
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CONCLUSION
From the above report, it had been concluded that marketing Ps plays a very important
role in achievement of organizational goals and objectives. In context to Red Bull, the company
uses a proper mix of various digital channels, ATL and BTL in order to create awareness and
promote their products. The company has successfully used 4Ps as compare to Lucozade Energy
as they have cracked and used these strategies in a well manner to communicate its customers. In
case of Lucozade, the company is not able to use marketing mix in effective manner as compare
to Redbull and it need to focus more on its promotion and pricing strategies in order to build an
image in customer's mind. When it comes to application of these 4Ps, both the companies can
use various pricing strategies, promotional methods, different distribution channel in order to
improve their marketing strategies. If compared between both the companies, the Red Bull has
successfully applied 4ps of marketing in its operations whereas Lucozade need to improve its
pricing, promotion, product and distribution strategies in order to achieve its objectives.
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REFERENCES
Books and Journals
Ferrell, O. C. and Ferrell, L., 2020. Technology challenges and opportunities facing marketing
education. Marketing Education Review, 30(1). pp.3-14.
Iacobucci, D., 2021. Marketing management. Cengage Learning.
Kaur, G., 2019. Is obsession with data and analytics making future marketers analytical
researchers? A conceptual customer relationship marketing model for customized
marketing education. Journal of Education for Business, 94(8). pp.569-575.
Mari, C., 2020. Enhancing Community-Based Learning in Social Work Education Through a
Social Marketing Approach. In Preparing Students for Community-Engaged Scholarship
in Higher Education (pp. 306-321). IGI Global.
Muminov, D. K., 2018. OPTIMIZATION OF MARKETING IN HEALTH
INSTITUTIONS. European science review, (9-10-2) pp.93-95.
Page, S. J. and Connell, J., 2020. Marketing tourism destinations. In Tourism (pp. 325-352).
Routledge.
Ružinská, E., 2018. The Analysis of Selected Aspects of Marketing in Educational
Institution. Mladá veda, 6(1). pp.36-46.
Schlee, R. P. and Karns, G. L., 2017. Job requirements for marketing graduates: Are there
differences in the knowledge, skills, and personal attributes needed for different salary
levels?. Journal of Marketing Education, 39(2). pp.69-81.
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