Comparative Analysis of Marketing Mix: Lucozade Energy and Red Bull

This report offers a comparative analysis of the marketing mix strategies of two prominent energy drink companies, Lucozade Energy and Red Bull. The report delves into the core elements of the marketing mix, including product, price, place, and promotion, for both companies. It examines the target markets, product design, pricing strategies (competitive and premium), distribution channels, and promotional techniques employed by each firm. The findings highlight the key differences in their approaches and how they cater to their respective consumer bases. The report also provides recommendations for potential improvements and concludes with an overview of the business aspects and strategies of both companies. The analysis includes a detailed look at the companies' market positioning, brand personalities, and competitive advantages within the energy drink industry.

Business

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................1
INTRODUCTION...........................................................................................................................2
FINDINGS.......................................................................................................................................2
1. Comparison of target markets..................................................................................................2
2. Product.....................................................................................................................................3
3. Price.........................................................................................................................................3
4. Place.........................................................................................................................................4
5. Promotion.................................................................................................................................4
RECOMMENDATIONS.................................................................................................................5
CONCLUSION ...............................................................................................................................5
REFERENCES................................................................................................................................6

EXECUTIVE SUMMARY
This report is a summarisation of different aspect that marketing mix possess that are
related with the two different firms namely Lucozade energy and Red Bull energy drink. Further
this project includes the summary of the aspects of marketing mix like product, price, place,
promotion, etc. that are an integral part of each and every firm that is doing its operating in the
market irrespective of the industry in which it is operating.
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INTRODUCTION
Business can be defined as an activity that makes helps a person to make one's living or
can be said as a money making aspect by producing or selling goods and services that are
required by the citizens of a nation or different nations (Arteaga and Menéndez-Requejo, 2017).
There are two firms taken that is Lucozade energy and Red Bull energy drink respectively. While
Lucozade energy drink firm was established in the year 1927 in the UK whereas Red Bull energy
drink is established in the year 1987 and it is an Austrian company. In this report there are
various aspects discussed about both the firm's marketing mix that is product, price, place, and
promotion. Apart from this the report also covers detailed analysis and evaluation of all the
related aspects of these two firm's.
FINDINGS
Marketing mix is a very crucial, essential, as well as a very critical aspect from the firm's
point of view as it can help a business to increase its sales and profitability but at the same time it
has the potential to damage and disrupt the market value and image of the firm if it is not implied
and used correctly and with pin point accuracy.
1. Comparison of target markets
Both the firms that is Lucozade energy and Red Bull energy drink works in the same
industry but works in different countries and thus both have different markets, goals, and
objectives to reach the target customers and all of them are explained in detail below-
Lucozade energy Red Bull energy drink
 Lucozade energy is a firm that is
operating in the industry since a pretty
long time and thus has captured a
considerable amount of share in the
market since then (Asongu and
Odhiambo, 2019).
 The firm focus on mainly the
individuals that are aged between 18-30
as it pushes the person to do much
 Red Bull energy drink is a company
that is established late as compared to
the Lucozade firm but it has also
captured a good amount of share in the
industry due to the quality of the
product.
 The company focus mainly on the
athletes and young individuals that are
working each and every day with the
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better performance today than the
performance that has been done
yesterday. It can also be consumed as a
soft drink too.
same integrity and intensity. It is
generally used as extreme sports drink
and thus it has attracted a larger
proportion of buyers towards the firm.
2. Product
It is a very important part of marketing mix as it is related with the product or service that
a firm provides to its customers thus the product must be in accordance with the needs,
requirements, and demands of the people and must be feasible too for the individuals (De Massis
and Foss, 2018).
Levitt’s model of a brand is basically based on the product and its related aspects.
Lucozade energy drink company has designed the product's shape, size, and packaging in such a
manner so as to attract a lot of customers because it has designed it with a mixture of red and
yellow colour that is reflected from a distance and thus it attracts the attention of the people near
by. While Red Bull energy drink has shaped its product in a very unique manner and it is
geometrically very correct and precise as well as its packaging adds various other benefits.
Aaker’s brand personality framework describes the different types of framework that a
firm follows. Lucozade energy follows a excitement and competence framework while Red Bull
energy drink follows sophistication and ruggedness personality framework due to the overall
structure of both the firms (Freudenreich, Lüdeke-Freund and Schaltegger, 2020).
3. Price
It is the amount that a customer is willing and able to spend on the product and service of
the firm thus the pricing must be in accordance with the individual purchasing power and
spending capacity of a specified geographical location.
Lucozade energy firm is working in an environment that is highly competitive in nature
and thus it adopts competitive pricing strategy for its products and services that it provides to its
customers. In the offline stores the price of the product that is a pack of 24 bottles each of 380 ml
in £15.99 whereas a customer can purchase the similar product online for £14.99.
Red Bull energy firm is a company that does its operation in the competitive environment
but the owner of the firm have immense faith on the product and services thus the firm adopts a
premium pricing strategy in the market. Thus a customer can purchase a pack of 24 bottles of red
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bull each of 250 ml in size in offline market at a price of £25.99 while the same product is
available in the online market for £24.99 to a customer (Moriel-Carretero, Pasero and Pardo,
2019).
4. Place
It is the place on which customer can buy the product and services of a specific firm thus
the geographic location of the firm is very important factor and a company has to set up firm in
the areas that can be easily accessible by the customers.
Lucozade energy is a firm that is very well established in the UK since a pretty long time
and is situated at a place that is called the heart of the city and thus it is easily accessed by a
number of people. Apart from this the company sells its product and services in almost each and
every offline store and it has expanded its business to online too and it sells its goods and
services there too (Pieroni, McAloone and Pigosso, 2019).
Red Bull energy drink is a firm that is operating in almost each and every country and
thus has captured a larger market as compared to other competitive firms that are operating in the
similar industry. The company chose location of the firm after a detailed research and analysis
and thus it has proved very beneficial too for the firm and it sells the products and services that it
provides online too.
5. Promotion
It is one of the most important aspect that plays a very crucial role in increasing the sales
and profitability of the firm in the long run. Thus it is very important for each and every firm to
use an excellent promotional tools and techniques for its products and services so as to leave a
positive impact on the customers. There are various promotional tools that are used by different
firms like advertisements, direct marketing, sales promotion, etc. and each firm has to chose an
impeccable promotional tool according to the needs, requirement, and demand of the business.
Lucozade energy company uses this mix to a lot of extend and it also has proved very
beneficial for the firm too in increasing its sales in the long run. The firm uses a lot of bill board
marketing as well as TV adverts so that it can reach to the maximum number of people and that
too within a limited period of time (Sheppard, Yeon and London, 2018).
Red Bull energy drink is a firm that spends a lot of amount on the promotion of its
products and services and that also resulted in increased market share for the firm in the long run.
It uses various types of story telling, advertisements, digital channels, etc. so that it can reach
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maximum number of people that are willing as well as able to buy its goods and services
(Täuscher and Laudien, 2018).
RECOMMENDATIONS
It can be recommended from the above that both the firms that is Lucozade energy and
Red Bull energy drink both are doing a commendable job in all the aspects but further small
rectification at various places can make both the firms stand pretty far ahead of all the
competitors that are prevailing in the similar industry.
CONCLUSION
Business can be described as setting up a firm in order to gain profits from it. From the
above it can be concluded that the firm Lucozade energy is established since a considerable long
time in the market and has captured a good amount of share in the market too there are many
changes that have to be done in the firm that can help the business grow and prosper much more
as compared to the current position of the firm. While Red Bull energy drink is doing
exceptionally well in all the markets in which it is operating but it has to recheck its pricing
strategy so that it can capture a larger share of market as compared to the market it has grabbed
until now.
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REFERENCES
Books and journals
Arteaga, R. and Menéndez-Requejo, S., 2017. Family constitution and business performance:
Moderating factors. Family Business Review. 30(4). pp.320-338.
Asongu, S. A. and Odhiambo, N. M., 2019. Challenges of doing business in Africa: A systematic
review. Journal of African Business. 20(2). pp.259-268.
De Massis, A. and Foss, N. J., 2018. Advancing family business research: The promise of
microfoundations.
Freudenreich, B., Lüdeke-Freund, F. and Schaltegger, S., 2020. A stakeholder theory perspective
on business models: Value creation for sustainability. Journal of Business
Ethics. 166(1). pp.3-18.
Moriel-Carretero, M., Pasero, P. and Pardo, B., 2019. DDR Inc., one business, two
associates. Current genetics. 65(2). pp.445-451.
Pieroni, M. P., McAloone, T. C. and Pigosso, D. C., 2019. Business model innovation for
circular economy and sustainability: A review of approaches. Journal of Cleaner
Production. 215. pp.198-216.
Sheppard, B., Yeon, H. and London, S., 2018. Tapping into the business value of design. The
McKinsey Quarterly.
Täuscher, K. and Laudien, S. M., 2018. Understanding platform business models: A mixed
methods study of marketplaces. European Management Journal. 36(3). pp.319-329.
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