Marketing Mix Comparison: Lucozade and Red Bull Energy Drinks

This report provides a comparative analysis of the marketing strategies employed by Lucozade and Red Bull, two prominent energy drink brands in the UK market. The report begins with an executive summary and introduction, followed by a detailed examination of the target markets for each brand, highlighting their segmentation and positioning strategies. The main body of the report delves into a comprehensive comparison of the marketing mix elements, including product, price, place (distribution), and promotion strategies, for both Lucozade and Red Bull. It explores the product offerings, pricing models, distribution channels, and promotional activities of each brand, providing insights into their competitive approaches. The analysis considers factors such as pricing strategies (cost leadership vs. premium pricing), distribution networks (retailers, supermarkets, online platforms), and promotional methods (TV, social media, sponsorships). The report concludes with a summary of findings and recommendations for both companies, suggesting potential improvements to their marketing strategies based on the comparative analysis. The report references several books and journals to support its findings and analysis.

Principles of Marketing
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Table of Contents
EXECUTIVE SUMMARY.........................................................................................................................3
INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
Comparison of Target Markets................................................................................................................3
CONCLUSION & RECOMMENDATION................................................................................................6
REFERENCES............................................................................................................................................7
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EXECUTIVE SUMMARY
The report is based on the use of marketing mix tool by different brands dealing in same
product line. The two energy drink brands that is Luzozade and Red Bull is taken in this report
and their various marketing tools and strategies re been compared and evaluated. Moreover on
the bases of the study the suggestion are been provided which they can take in order to improve
their market performance and able to attract large number of potential customers.
INTRODUCTION
Marketing is an important function of the business as it acts as a bridge between targeted
customers and company. This report is aimed at comparing marketing essentials of two
companies. Lucozade energy and Red Bull energy drinks have been taken as two competitive
companies in same industry whose marketing mix will be assessed below.
Lucozade is a soft drink company. It was introduced in 1927 by pharmacist, William
Walker Hunter as “Glucozade” as an energy drink. It was later acquired by GlaxoSmithKline
group and from them to Japanese drinks conglomerate Suntory. Initially, traded as energy drink
for the sick, it was later rebranded as sports drink. Company provides products all over UK. Red
Bull is also an energy drinks brand like Lucozade. It is manufactured and marketed by Austrian
company Red Bull GmbH. It was first introduced in 1987 and six years later in 1993, it came to
UK. Unlike Lucozade, Red Bull is a multinational company and targets active youth customers.
There are many brands in soft drink industry in UK such as Red Bull, Lucozade, Boost,
Monster, Rockstar, Relentless, etc. but together, Red Bull and Lucozade takes maximum market
share of energy drinks in UK market. As per the surveys in 2018-19, Red Bull had the market
lead in 2018 but was taken over by Lucozade in 2019 by a slight margin (Ranking of energy
drinks brands by number of users from 2018 to 2019, 2020). UK energy drinks market is
expected to grow with only 4.3% during 2016-2015 (UK energy drink market growth, forecasts
and trends (2020 – 2025), 2020). That can be owed to increase in awareness for fitness and
activity level of users which is causing consumers to shy away from drinks which have lot of
sugar in them.
MAIN BODY
Comparison of Target Markets
Lucozade is one of the most popular energy drink which is segmented and positioned as
sports drink and is targeting the youth of the country. The company is adopting cost leadership
pricing strategy that is having affordable prices with the motive to attract the potential customers
belong to different income groups. The company is providing quality drinks to its customers
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hence able to establish its brand name in market place and able to positioned itself ahead of its
competitor such as Red Bull, Coca-Cola and many more.
Red Bull is one of the most popular energy drinking which is targeting teenagers and
youth from age of 15-30. Company is positioning itself in the range of premium quality products
and is charging high prices. That is providing its quality drinks at premium prices and targeting
people belonging to medium and high range of income group. The company is providing quality
products to its customers has able to attract large number of customers and convert them into
loyal customers. Hence they are coming up with new strategies and different products in order to
remain competitive in the marketplace and gain competitive advantage.
Marketing Mix
The marketing mix tool helps the companies in understanding the current market trends
and the preferences of the customers so that they would able to formulate the new marketing
strategies that provide value to their products and services (Swenson and Rhoads, 2019). Its
components are explain below-
Product
Product is the main component of the business organizations where by providing the
physical products they aim at earning profits and to satisfy the customers.
Lucozade- The company is dealing in energy drinks and provide glucose carbonate in its drinks
in order to provide insight energy to sports people. They are offering energy drinks in various
flavors as taste differ from person to person. The flavors which they are providing are orange,
apple, mango, lemon, cherry, watermelon and strawberry. Moreover they are providing drink in
three packaging that is in bottles, cans and tablets.
Red Bull- The company is providing similar products to its customers in blue and red package
and targeting teenagers who requires more energy and able to stand on the needs of customers. In
comparison to Lucozade they produce drink which contain high amount of sugar and caffeine in
its range of energy drink. Hence with the increase in the health problems they have now come up
with sugar free version in its drinking products.
Price
Price in simple words is the total amount which customers pay for buying the product of
the organization. Moreover the prices should be fixed by companies after analyzing the
customers paying capacity (Vowles, Hutto and Miller, 2017).
Lucozade- They are following differentiation pricing strategy as they are facing high competition
in market place. They are providing drink products to its potential customers in three packaging
with has different prices and different quantity. Cans are provided for £14.00 approximately,
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bottles are provides for £16.00 approximately and tablets are for £18.00 approximately.
Moreover the prices are not fixed as they are dealing in super market hence are fluctuating
according to changing market trends and preferences of customers.
Red Bull- In comparison to Lucozade they are following different pricing strategies as they are
operating across the globe. It is having premium pricing strategy as it is providing quality drinks
to its potential customers where its global presence and loyal customer base help them in
maintaining its strong position in marketplace.
Place
Place is one of the important part of marketing mix where the business organizations take
decision regarding its market place they are going to target or provide its products or services
and its distribution centers and channels (Atwal and Williams, 2017).
Lucozade- The brand is providing its product to its potential customers with the help of local
retailers and through physical and online supermarket stores. The local retailers refer to shops
near schools, gyms , etc whereas online and physical supermarkets refers to Tesco, Amazon, etc.
Moreover with the help of company website they are selling its products to customers who are
living in UK and Northern Ireland in current business environment.
Red Bull- The company is providing its products across the globe hence focus on mix strategy in
order to sell its products and earn maximum possible profits. The drinks of the company are
easily available is they are covering large market area hence have strong distribution chain. The
drinks are available in supermarkets, grocery stores, clubs, events and many more places.
Moreover they are providing drinks through online stores such as Amazon, etc.
Promotion
It refers to the advertising strategy which help the organizations in reaching to its
potential customers and providing them information related products and services (Bonaparte,
2019).
Lucozade- The company understand the importance of promotional strategies as it is important
to make the potential customers about its products in order to operate in this competitive
industry. The company is using both online and offline methods through TV, social media
marketing, email marketing and many more in order to attract large number of customers.
Red Bull- Organization has a devoted group of inventive people who have by and time created
new and imaginative special strategies for organization. Much the same as Lucozade,
organization likewise takes both customary and computerized strategies for advertising. Be that
as it may, its fundamental spotlight is on inventive and innovative special missions which makes
it one of a kind and causes it stand separated from its rivals like Lucozade. They use strategies
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like big name supports, free example appropriation at games, sponsorships and missions to build
brand mindfulness.
CONCLUSION & RECOMMENDATION
From the above report, it can be concluded that both the companies have their defined
marketing mix. While Lucozade has focused on broadening its product portfolio, Red Bull has
selected products and focuses on quality more than quantity as that has been its completive
advantage. Lucozade has kept differential pricing policy while Red Bull has premium pricing
policy. Both the companies have adopted ‘more the ease in availability of finding the product by
the customer, more it is better for company sales’ phrase as their distribution strategy. Red Bull
has better marketing strategies than Lucozade as Lucozade prefers specific forms of marketing
mediums while Red Bull prefers innovating their marketing campaigns every time.
Both of them must have adopted this marketing mix in accordance with their company
policies and objectives and going by their market shares, size and sales figures, it can be easily
said that both of them have successfully applied their 4Ps of marketing mix. However, in view of
the uncertain changes that keeps happening in business environment, it is important for Lucozade
to improve their promotional aspect of marketing mix while if, Red Bull includes some lower
priced products in their portfolio, they will be able to attract more price sensitive customers.
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REFERENCES
Books & 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.
Swenson, M.J. and Rhoads, G.K., 2019. Engaging Students in Large Sections of Principles of
Marketing. Business Education Innovation Journal. 11(1).
Vowles, N., Hutto, A. and Miller, P.M.M., 2017. Content Analysis of Assessment Data in
Marketing Education. e-Journal of Business Education and Scholarship of Teaching.
11(1). pp.57-68.
Atwal, G. and Williams, A., 2017. Luxury brand marketing–the experience is everything!.
In Advances in luxury brand management (pp. 43-57). Palgrave Macmillan, Cham.
Online
Ranking of energy drinks brands by number of users from 2018 to 2019. 2020. [Online].
Available through:< https://www.statista.com/statistics/308493/leading-brands-of-
energy-drinks-excluding-colas-or-mixers-for-alcoholic-drinks-in-the-uk/>
UK energy drink market growth, forecasts and trends (2020 – 2025). 2020. [Online]. Available
through:< https://www.mordorintelligence.com/industry-reports/united-kingdom-
energy-drink-market>
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