Marketing Mix Analysis of Lucozade and Red Bull

The assignment analyzes the marketing mix of Lucozade and Red Bull energy drinks, highlighting their strengths and weaknesses in terms of product, price, promotion, and place. It concludes that both companies are highly competitive and have good brand value, with Lucozade's affordable pricing and Red Bull's luxury image being key factors in their success.

The 4Ps/ Marketing
Mix

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Target market...........................................................................................................................1
2. Product.....................................................................................................................................2
3. Price.........................................................................................................................................2
4. Place.........................................................................................................................................4
5. Promotion.................................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Marketing mix is a combination of four different elements such as product, price, place
and promotion. For all the business entities it is very important to analyse all of them so that
business can be operated in appropriate manner (Festa and et.al., 2016). In order to complete this
report two organisation are being selected these are Lucozade Energy which is manufactured by
Suntory and introduced in 1927. Second company is Red Bull which is manufactured by an
Australian company and created in year 1987. Various topics such as target market, product,
price, place and promotion strategies of both the companies are covered under this report.
MAIN BODY
1. Target market
In order to analyse target market marketers of business entities can conduce STP analysis
that helps to establish appropriate profile for the same purpose. For Lucozade and Red Bull it is
as follows:
STP Lucozade Energy Redbull
Segmentation Under this head marketers of
Lucozade focus of age, marital status,
education and gender of customers in
order to analyse segment where
products are going to be launched.
Demographic market segmentation
strategy is used by the company for
the purpose of selling its items.
Marketers of Red Bull focus on psycho
graphic segment in which values,
lifestyle, personality of customers are
taken in to consideration to introduce
products in the market. In order to
provide best experience to clients,
organisation try to provide them best
quality products.
Targeting After analysing different segments
marketers of the company identify best
target which is most attractive from all
of them. Profitability of all the
segments is the first point which is
analysed by marketers to select best
target segment. Lucozade's targeted
While choosing target segment
marketers of Red Bull identify the best
market where it can attain higher profits
and then launch products in market.
Current targeted segment of the
company is people from age group of
18 to 35 who need energy to deal with
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segment is young people of market. their hectic life.
Positioning It is the last step which is taken by the
company in order to establish a
positive image in their mind. Under
this head different types of promotions
strategies are formulated in order to
aware large number of customers to
enhance profits.
Marketers of Red Bull use innovative
promotion techniques which includes
online marketing, advertising of TV etc.
It helps to attract large number of
customers and capture larger market
segment.
2. Product
It is the first element of marketing mix in which different aspects of a brand are analysed.
These are share, packaging, colour scheme, personality framework etc. A comparison of
Lucozade energy and Red Bull drinks is as follows:
Levitt model of brand is a tool that can help the marketers of Lucozade and Red Bull to
analyse important factors of products such as shape, packaging and colour scheme. In this model
there are three different stages generic, expected and augmented are followed by the companies.
At generic stage Lucozade and Red Bull can offer normal drinks which can be bought by
customers from any supermarket (Londhe, 2014). The expected products are energy drinks that
customers expects from the manufacturer. At this stage both the companies can offer their
products to customers to fulfil their expectations. Augmented items are made from some unique
features such as drinks with different flavours like orange, guava, grapes etc. At this stage
different packaging techniques are also used by the company. Red Bull is sold in attractive cans
and Lucozade is sold in plastic bottles. Both of them are trying to portray that they have good
capability to fulfil requirements of customers.
Aaker's brand personality model can be used to determine that which type of personality
is the brand follows (Aaker's brand personality model, 2018.). It has five different dimensions
sincerity, excitement, competence, sophistication and ruggedness. Lucozade follows sincerity
dimension as its price is low and have a good market image that attracts customers. Red Bull
follows competence dimension as it is reliable and a successful leader in the market.
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3. Price
There are various types of companies that are selling energy drinks in UK. Lucozade's
prices are very low as compare it competitors such as Red Bull and Coca cola. It is every
important for the organisations to set appropriate price for products so that large number of
customers can be acquired by the company. Price of Red Bull's energy drinks is higher from
Lucozade due to its high quality of products. Coca Cola which is considered as their competitor
has huge prices for all its drinks. In order to operate business in appropriate manner Lucozade
and Red Bull are required to focus on pricing strategy and market conditions. A table below is
showing comparative analysis of prices of all the three companies.
Price Lucozade Red Bull Coca cola Energy
drink
In Store 0.19 pounds 0.48 pounds 1.52 pounds
Online (Amazone.uk) 0.16 pounds 0.42 pounds 1.50 pounds
The table is showing that Lucozade's price is low as compare to other companies. This
organisation adopts penetration pricing in which the main target segment is niche market where
lower price is set by the company for its products. The main objective of this strategy is to attract
large number of customers towards the items of the enterprise (Oflac and et.al., 2015). On the
other hand, prices of Red Bull is very high as compare to Lucozade. The organisation is using
premium pricing strategy in which higher prices are set by the marketers. The target segment of
it is upper level clients of the market. It helps the company to be competitive in the market and
attain competitive advantage.
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4. Place
The location where products are sold by the super markets, grocery stores, department
shops etc. are considered as the place. It is very important for all the business entities to manage
their distribution channel so that required items can be delivered to the customers accordingly. In
order to fulfil requirements of clients it is very important for business entities to be easily
accessible for them so that higher profits can be acquired by selling large number of goods. This
drink is sold in many supermarkets and grocery shops (Resnick and et.al., 2016). Red Bull is also
using good strategies to enhance visibility of its products in different supermarkets so that higher
profits can be achieved. Both of them available at a Branch of Tesco. The image below shows
their availability in the store:
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Both the drinks are available in the supermarkets of UK and sold all around the world. In
order to enhance profits it bis very important for both of them to available at such places where
customers can reach easily. The place where drinks are sold is a mass market product where both
the organisations have maximised the distribution outlets. Both of them are easily available at
different stores in UK. Brand value of Lucozade is very good because its price is very low as
compare to other energy drinks that helps it to capture larger market area. On the other hand
brand value of red Bull is also high because the quality of its drinks is very good which helps it
to be the market leader. The image shows that both of them are highly competitive and have
good brand value.
5. Promotion
All the efforts that are made by business entities in order to establish a good image in the
minds of customers is known as promotion. It is vital for all organisations to use innovative
promotion techniques so that clients get aware of items offered by them (Wasan and Tripathi,
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2014). Lucozade uses various methods for the purpose of promoting its energy drinks. These are
commercial advertisements, social media, own websites etc. Detailed information can be
gathered by consumers from all these channels and also get aware of the products that they are
wiling to buy. It is positioning itself in the minds of consumers with the help of its price which is
affordable for them.
Red Bull's marketers are using various promotions methods to enhance its visibility
online and in stores. These are hoardings, TV, website and digital media. All of them helps
clients to get aware of products that are offered by the company. Attractive personalties are used
by the organisation to promote it self. The energy drinks healthy and luxury that can establish a
good image in the mind of customers (Wu and Li, 2018).
CONCLUSION
From the above project report it has been concluded that marketing mix can help an
organisation to analyse all the essential aspects that may helps to attain higher profits in future.
Four different elements product, price, place and promotion are being analysed by marketers of
business entities in order formulate strategies for the betterment of company.
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REFERENCES
Books and Journals:
Festa, G. and et.al., 2016. The (r) evolution of wine marketing mix: From the 4Ps to the
4Es. Journal of Business Research. 69(5). pp.1550-1555.
Londhe, B. R., 2014. Marketing mix for next generation marketing. Procedia Economics and
Finance. 11. pp.335-340.
Oflac, B. S. and et.al., 2015. Services marketing mix efforts of a global services brand: The case
of DHL Logistics. Procedia Economics and Finance. 23. pp.1079-1083.
Resnick, S. M. and et.al., 2016. Marketing in SMEs: a “4Ps” self-branding model. International
Journal of Entrepreneurial Behavior & Research. 22(1). pp.155-174.
Wasan, P. G. and Tripathi, G., 2014. Revisiting social marketing mix: a socio-cultural
perspective. Journal of Services Research. 14(2). p.127.
Wu, Y. L. and Li, E. Y., 2018. Marketing mix, customer value, and customer loyalty in social
commerce: A stimulus-organism-response perspective. Internet Research. 28(1). pp.74-
104.
Online
Aaker's brand personality model. 2018. [Online]. Available through:
<http://www.superskill.com/aaker-brand-personality-dimension/>
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