Principles of Marketing: Comparing Lucozade and Red Bull Marketing Mix

This report provides a comprehensive comparative analysis of the marketing strategies employed by Lucozade and Red Bull, two prominent brands in the energy drink industry. The report begins with an introduction to marketing principles and their application in building effective marketing strategies, followed by a detailed comparison of the target markets of both brands, considering factors such as age, gender, income, social class, and lifestyle. The core of the report focuses on a comparative analysis of the marketing mix (4Ps) of Lucozade and Red Bull, examining their product offerings, pricing strategies, distribution channels, and promotional activities. The report also explores the application of the STP model (Segmentation, Targeting, and Positioning) in the marketing planning process of both brands, including an analysis of brand personality. The report concludes by summarizing the key findings and implications of the comparative analysis, highlighting the strengths and weaknesses of each brand's marketing approach and providing insights into their competitive positioning within the energy drink market.

Principles of Marketing

Table of Contents
INTRODUCTION...........................................................................................................................3
FINDINGS.......................................................................................................................................3
Comparative analysis of Brand's Marketing mix ..................................................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Marketing Principles are the set standards and ideas for building marketing strategies.
Company utilise these principles for building marketing mix of a product and for understanding
customers needs. This report is aimed to compare the application of marketing mix of two brands
Lucozade Energy and Red Bull energy drink in beverages industry. Lucozade Energy is a sport
and healthy drink with a target market of athletes, sick people, doctors and youngsters. It has a
big market share across the world and its is headquartered in UK. Red Bull energy drink
headquartered in Austria with the highest market share and its target customers are athletes,
youngsters and adults.
FINDINGS
Comparison of Target markets of Lucozade and Red Bull
Target market is the group of potential customers who desires the product of a company.
It is focused on serving its target customers with analysis of demographic, geographical,
psychological and sociological factors etc (Bonaparte, 2019). In energy drink industry both the
brands have a global presence with large market share. This can be analysed further with the
following factors-
 Age- In this age is considered as an essential factor in determining the market segment
and targeting potential consumers for a product. Both the brands has considered age
factor for determining target customers with the help of trends in the marketplace.
 Gender- In this gender differentiation is done for analysing product's performance and
usage mostly by male and female. It helps in serving needs of both male and females
effectively. In this brands has considered gender factor for identifying different needs of
male and female.
 Personal disposable income- Personal disposable income of individuals is the remaining
amount of their income which shows the purchasing power of customers. It helps in
addressing the demand for a product (Cummins, Loe and Peltier, 2016). It is important
factor for both the brands to estimate demand of a product.
 Social class- In this marketer assesses the social class of its target market to understand
their needs and wants. Also it helps in projecting demand of a product. It is important
factor in finding the target customers. This factor is essential in segmenting different

classes in marketplace. Brands has achieved this factor by focusing on upper classes and
middle classes to satisfy their esteem needs.
 Level of education- This reflects the sophistication level of target market as more
educated people are well aware of specific needs and wants (Porral and Stanton 2017).
This factor has influenced industry with amount of awareness in the details of a product
by consumers.
 Family life cycle- This helps in finding the stage at which families are in a market.
Therefore helps in targeting specific customers with analysing respective needs and
decision maker of a family.
 Lifestyles- In this to determine the target customer lifestyle of people is analysed with the
help of past trends and purchasing habits of people.
 Other brands they like- In this taste and preferences of customers are identified to
understand competitors preferences over their own brands.
 Hobbies- Hobbies helps in determining likes and dislikes of people in a market. This has
helped brands in segmentation of marketplace. Thus, helping in targeting customers with
health conscious, sports lovers, and workaholics people.
Thus, Red Bull and Lucozade drinks has utilised various factors for determining target
markets. Both the brands has considered various demographic and behavioural factors with the
help of various tools and techniques.
Comparative analysis of Brand's Marketing mix
Marketing mix is the strategy for positioning a product with its core elements to achieve
marketing objectives of a company. It is used as a tool for promoting a brand and analyse its
performance in the target market. It includes 4Ps Product, Price, Place and Promotion and market
research for building marketing strategies to achieve overall objectives.
Product Mix- It is one of the important element of marketing which is bought in the
market. It is refer to all the attributes inside the product to satisfy various needs of customers.
Also, it refers to varied product range available to achieve position in the market. Lucozade is
designed to boost the energy level of people with a tag line “Lucozade aids recovery” (Shameem,
2016). Therefore, it has targeted sick people to increase their energy level for recovery and also
considered as sports drinks for athletes for enhancing their physical activity. While Red Bull is
also designed as a energy drink to increase the performance of individuals. It helps in boosting

attention levels and in improving physical performances. Both the drinks are considered
carbonated and produces side effects in excessive consumption. Red Bull has larger market share
than Lucozade in targeted market. Red Bull has focused its range of market in athletes,
youngsters, workaholics etc. While Lucozade has targeted sick people, health enthusiast, doctors
and adults (Shulgina, 2017). Red Bull has sugar free drinks for diabetic patients and dieticians
while, Lucozade dose not provide sugar free drinks. In respect of brand personality of aaker's
model Red Bull is considered as Excitement which is exciting, outrageous, bold and hyper
energetic brand personality whereas Lucozade is considered as Competence which is providing
solutions in recovery of sick people and energy booster to various individuals with vitamins in its
ingredients.
Place Mix- In this marketing mix it is concerned with distributing product and to reach
the potential customers. It is important to provide accessibility and availability for satisfying
demand of a product. It includes various channels of distribution including middlemen, agents
and retailers etc. Red Bull has wide market to serve globally with a robust and wide distribution
network whereas Lucozade also has effective distribution system and wide market to serve
globally but lesser than red bull. Both approaches supermarkets, hypermarkets, malls and other
outlets to reach customers worldwide. Lucozade also approaches pharmaceuticals and hospitals
to make availability of its products to patients. Red Bull is considered as luxury product whereas
Lucozade is
Promotion Mix- It is the most crucial element of marketing which focuses on
communicating features and benefits of a products to targeted customers. It helps in spreading
awareness to increase the demand of a product. Lucozade uses various methods such as
advertisement, promotional campaigns and personal selling whereas Red Bull uses
advertisement, promotional campaigns and selling propositions etc for enhancing the knowledge
of its products (Wood and Jobber 2016). Both of them uses various online social channels to
reach the target customers especially youngsters in case of Red Bull.
Price Mix- In this price is considered as value addition exchange process in terms of
money. It helps in determining the perception of a product by charging set prices in the market.
High valued perceived products are charged at higher prices due to customers desire for using
luxurious and quality products. This helps in boosting customer's self esteem in consumption of
such products. Furthermore energy drinks are considered as high valued products with high

quality satisfying varied needs of consumers. Its price is often consider as the indicator to
evaluate level of quality in a product. Lucozade and Red Bull uses competitive pricing for
competing in the market. Red Bull is the market leader in the energy drink industry whereas
Lucozade is most popular brand in the healthy drinks industry this leads to charge slightly higher
prices than its customers. Also, Red Bull is considered as most expensive drink in its industry.
Due to economic recession across the world the demand for both the brands has diminished with
the decreasing purchasing power of customers.
STP in Marketing planning process
STP model is considered for analysing the impact of communication and its offering of
products in the target market. It involves segmentation of market, targeting potential customers
and positioning of brand in the market. It can further be analysed with the help of brand
personality model. It helps in determining the image of the brand in terms of human
characteristics and perception. STP is an important part of marketing process which helps in
boosting campaigns performance and marketing plan by adding value in it. Segmentation helps
in dividing the market in different groups with the help of forming clusters of similar people in
one segment. After this targeting those potential customers for communicating specific
marketing informations(Woodham, 2018). These informations are designed in a framework to
achieve the desired position of a company's products and brands. This helps in building
competitive advantage for differentiating its target market and serving their needs in a most
effective manner. Thus, it helps in identifying a target market from a general market. It is
achieved with the help of analysing various factors of population such as demographic,
psychological, sociological, and geographical features of a marketplace. Furthermore it
determines the specific needs of a cluster or segment and serving them with utmost satisfaction.
Also, STP helps in analysing the consumer behaviour by understanding their values, beliefs,
attitudes and other behavioural influences etc.
CONCLUSION
From the above report it can be concluded that Red Bull and Lucozade energy drinks has
used marketing mix effectively. An analysis has been done to compare marketing mix strategies
of both the brands. It includes factors involved in targeting marketplace and their comparison
with each other. Also usage of STP model in marketing planning process.

REFERENCES
Books and journals
Bonaparte, Y.L., 2019. Sustainable outcomes of an experiential learning project in a principles of
marketing course. Journal of Global Scholars of Marketing Science. 29(1). pp.7-14.
Cummins, S., Loe, T. and Peltier, J.W., 2016. Using sales competition videos in a principles of
marketing class to improve interest in a sales career. Journal for Advancement of
Marketing Education. 24(Special Issue on Sales Education). p.16.
Porral, C.C. and Stanton, J.L., 2017. Principles of marketing. ESIC Editorial.
Shameem, A.L.M.A., 2016. Religious principles as marketing strategies: critical evaluation of its
applications and impacts on financial institutions in South Eastern part of Sri Lanka.
Shulgina, L., 2017. Principles of marketing management of a modern enterprise. World Scientific
News. (72). pp.628-636.
Wood, M.B. and Jobber, L., 2016. The marketing plan handbook. Pearson.
Woodham, O.P., 2018. Testing the effectiveness of a marketing simulation to improve course
performance. Marketing Education Review. 28(3). pp.203-216.