Analysis of Marketing Mix for Redbull and Lucozade Energy Drinks

The assignment involves analyzing the marketing mix for two energy drink brands, Redbull and Lucozade. The four elements of marketing mix (product, price, place, and promotion) are examined to understand how they contribute to the success of these brands. The report concludes that both Redbull and Lucozade have effectively applied the 4 Ps to achieve their business goals, with Redbull having attained huge success in the application of marketing mix. Recommendations are provided for improving the use of marketing mix by spending more on research and development activities.

The P/s Marketing Mix

EXECUTIVE SUMMARY
Marketing mix is a tool which is used by most of the companies to establish a good brand
image in the market in order to enhance sales. There are four different elements of it these are
product, price, place and promotions. In this project report comparative analysis of targeted
market and these elements of two different energy drinks Lucozade and Redbull. For all the
business entities it is very important to use effective strategies in order to enhance profitability
and visibility of its products.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Comparison of target markets............................................................................................1
2. Product- Evaluation of the products and their brand values...............................................2
3. Price- Evaluation of the pricing strategies used.................................................................3
4. Place- Distribution of the brands........................................................................................3
5. Promotion- Communication of the brands.........................................................................4
CONCLUSION AND RECOMMENDATIONS............................................................................4
REFERENCES................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Marketing mix is the combination of four different elements that are product, price, place and
promotion. For all the business entities it is very important to analyse all of them so that effective
strategies for the company can be formulated (Barrett and Weinstein, 2015). Main objective of
this report is to analyse importance of marketing mix for different organisations. Two different
companies are selected for this assignment. First one is Lucozade which is a soft drink
manufactured by Suntory. It was introduced in year 1927 and it has captured larger market share.
Second company is Red Bull which is an energy drink created by an Australian company in year
1987. It is selling almost 6.790 billion can per year. In this project report comparative analyse of
marketing mix and STP of these two companies is being produced.
MAIN BODY
1. Comparison of target markets
In order to compare target market STP is the best strategy that can help marketers to
determine that effective techniques are used to capture market share or not. A comparative
analysis of all the elements for Redbull and Lucozade Energy is as follows:
STP Redbull Lucozade
Segmentatio
n
In this type of strategy organisations
select best segment to launch its
products (Segmentation, 2019).
Marketers of Redbull divide the whole
market in to different groups. The
organisation is using Psychographic
segmentation for its products as
Redbull is an energy which is not used
by all the people. In such type of
segmentation, the organisation takes
buying behaviour and their life style in
to consideration. Most of the businesses
life this company which are offering
lifestyle products use this type of
In Lucozade marketers segregate the
market in to different segments
according to potential customers.
Behavioural market segment is used
by the company and it taken usage
and decision-making patterns in to
consideration which formulating
strategies for business. The price is
set by the company to its energy
drinks according to the buying
behaviour of its chosen segment.
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strategy.
Targeting In this section of STP target segment is
being selected by the company in
which a specific segment is being
selected where the products are being
selected. The target customers of
Redbull are the young and upper-class
customers of the society who prefer
energy drinks (Evans and et.al., 2014).
Marketers of Lucozade selects the
best suitable segment of the chosen
segment. Targeted customers of the
organisation are people of age group
of 18 to 50 who prefer to have energy
drinks to boost their energy level.
Positioning While using this strategy marketers
always try to establish a good image in
the minds of customers by using
effective methods for promotions and
good quality of the drinks that are sold
by Redbull. Positioning strategy of the
company is based upon product
differentiation in which its products are
different from other and its methods of
marketing are also different.
With the help of positioning
Lucozade always try to set a brand
image in the market to attract
customers. Marketers of the company
use innovative techniques for
promotion and provide high quality
drinks to the targeted customers in
order to retain them for long period. It
is also beneficial for the purpose of
increasing market share.
2. Product- Evaluation of the products and their brand values
Products are the items that are launched by companies in the market for sale. It is very
important for the organisations to offer such items to customers that they are willing to buy.
Redbull is an energy drink which is used to charge tired people. It is mainly consumed by young
people due to their hectic life. It contains high quality ingredients. Nowadays business of it, is
growing due to higher demand of it in the market. A 250 ml bottle of it contains 80 mg of
caffeine which is equals to one cup of coffee. Excess consumption of it can be harmful for the
health. It is available in various countries and a most popular energy drink in the world. Sugar
free energy drinks are also served by the organisation to its fitness freak customers (Fan, Lau and
Zhao, 2015).
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Lucozade is also a well-established brand of energy drinks which is offering its products
all around the world. It contains caffeine and glucose which is the main requirement of the body
of such people who are working continuously in office and require to boost their energy level.
The quality of its drinks is very good which helps it to retain its customers for a long period.
3. Price- Evaluation of the pricing strategies used
It is very important for all the companies to set appropriate prices for the products so that it
can meet expectations of customers. Pricing strategies of Redbull and Lucozade are as follows:
Manufacturers of Redbull use premium pricing strategy for its products because the targeted
customers of the company are from upper class. The drink is mainly made for workaholic
people. Its market price is very high as compare to its competitors yet it is the market leader due
to its high demand in the market. Main reason for its high demand is its quality which is very
good and consumers are ready to pay high amount if quality of products is very good (Festa and
et.al., 2016).
Lucozade uses penetration pricing strategy as the targeted customers of it are the people of
age group of 18 to 50. It pricing strategy is based upon competitors pricing. Main goal of the
company is to capture larger market share that’s why it sets lower price to the drinks so that
larger number of customers get attracted towards it. Demand of its energy drinks is continuously
increasing due to its good quality.
4. Place- Distribution of the brands
For all the organisations it is very important to find appropriate location for the sale and
distribution of the products so that larger number of customers can be attracted towards the
items. For both the companies this element is as follows:
Redbull has attained huge success in the market due to its effective and vast distribution channel
all around the world. Its drinks are available at super markets, grocery shops, departmental stores
of the countries where these are served. It helps to enhance profitability of whole organisation
due to higher sales and revenues. Customers can get them easily to their nearby locations.
Marketers of the company focus on the location while formulating marketing strategies in order
to provide easy access to the customers (Londhe, 2014).
Lucozade is continuously growing due to higher demand of energy drinks. Reason behind
it is availability of the drinks which are easily available for the customers as departmental stores,
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malls, supermarkets, pubs and grocery shops. Marketers of the company always take the targeted
customers in to consideration while forming decision regarding distribution channel and location.
5. Promotion- Communication of the brands
For all the brands it is very important to get identified by the customers in order to establish
a market image promotion is the main requirement.
Redbull is using different types of promotion strategies including advertising on television,
social media etc. The tag line of the brand is “Redbull gives you wings” and the celebrities that
are used in commercials are sport persons because they set the best example of people who
require energy in their busy life. The main objective behind all these promotion activities is to
remind clients about the energy drinks and establish a good image of the items in their mind
(Wirtz and Lovelock, 2016).
Lucozade energy drinks also use innovative technologies for the purpose of promotions.
Different types of commercial advertisements, festive offers, online promotions etc. are the
activities that are used by the company to establish a brand image. It is very important for
companies like Lucozade to increase its visibility so that large number of customers can be
attracted towards the company.
CONCLUSION AND RECOMMENDATIONS
From the above project report it has been concluded that marketing mix is a beneficial tool
which can help to form attractive marketing strategies. The four elements of marketing mix are
product, price, place and promotions which are required to be analysed in order to attain business
objectives such as profit maximisation and customer satisfaction.
Recommendation: Redbull and Lucozade both have applied 4 P’s in effective manner as
attractive strategies are being formulated by the marketers. They have applied 4 P’s to achieve
previously establish business goals. From both of them Redbull have attained huge success in the
application of marketing mix. Both the brands can improve the use by spending more monetary
resources on research and development activities.
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REFERENCES
Books and Journals:
Barrett, H. and Weinstein, A., 2015. Corporate entrepreneurship, the marketing mix, and
business performance. In Proceedings of the 1997 Academy of Marketing Science
(AMS) Annual Conference (pp. 144-150). Springer, Cham.
Evans, W. D. and et.al., 2014. Social marketing of water and sanitation products: a systematic
review of peer-reviewed literature. Social Science & Medicine. 110. pp.18-25.
Fan, S., Lau, R. Y. and Zhao, J. L., 2015. Demystifying big data analytics for business
intelligence through the lens of marketing mix. Big Data Research. 2(1). pp.28-32.
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.
Wirtz, J. and Lovelock, C., 2016. Services marketing. World Scientific Publishing Company.
Online
Segmentation. 2019. [Online]. Available through:
< https://www.marketing91.com/4-types-market-segmentation-segment/>
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REFERENCES
Books and Journals:
Online
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