Marketing Report: A Comparison of Lucozade and Red Bull Energy Drinks

This report provides a comprehensive comparison of the marketing strategies employed by Lucozade and Red Bull, two prominent players in the energy drink market. The analysis begins by examining the target markets of each company, detailing their segmentation, targeting, and positioning (STP) strategies. It highlights the demographic, behavioral, and psychographic factors influencing their consumer profiles. The report then delves into a comparative analysis of their marketing mix, exploring the differences in product offerings, pricing strategies, distribution channels, and promotional activities. The findings reveal how each company tailors its marketing efforts to resonate with its specific target audience and achieve a competitive advantage. The report concludes with recommendations for both companies, suggesting ways to enhance their marketing effectiveness in an evolving market landscape. It emphasizes the importance of online selling, product innovation, and competitor analysis for sustained success.

PRINCIPLES OF
MARKETING

Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................3
FINDINGS.......................................................................................................................................3
Comparison of target market.......................................................................................................3
Comparison or marketing mix....................................................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Marketing is the most important aspect for the business to have a secure position in the
competitive market. The major reason for this is that the competition within the market is very
high and if the companies will not effectively work on marketing then they might lose market
share. The current study is based over comparison of marketing of two different companies.
These companies are Lucozade energy and the Red bull energy drink company. Lucozade is a
soft drink manufacturer which was introduced in 1927 in UK and deals in many different types
of drinks. On the flip side the Red bull energy drink is a type of energy drink which is sold by
Red Bull gmbh and was introduced in the year 1987 in Austria. The market share of Lucozade in
2019 was 3744 (in 000s) number of consumers (Energy drink brands of Lucozade in Great
Britain 2013- 2019 by number of users, 2019). The current report will analyse the difference
between the target markets of both the companies. Further the discussion will take place over the
comparison between the marketing mix of the both the companies.
FINDINGS
Comparison of target market
Deciding the target market is the most important thing for the company to attain success.
The major reason for this is that if the company knows about the target market then it will be
easier for the companies to market their product in the target market. The comparison of the
target market of Lucozade and Red bull are as follows-
Basis Lucozade energy Red bull energy drink
Segmenting- this is defined as
the dividing of the consumer
in several groups on the basis
of the common characteristics.
The major segmentation used
by the Lucozade energy is
based on basis of demographic
in which major focus is laid
over age and income group.
Another major segmentation is
done over basis of occupation
as well (Datta, Ailawadi and
Van Heerde, 2017).
Under the segmenting strategy
of Red bull comes the major
focus over the segment of
demographic and under this
the main emphasise is laid
over gender and age along
with income. Further another
major segment focused by
company is on basis of

behaviour that is personality,
degree of loyalty of person.
Targeting- this is defined as
the target a specific group out
of the entire segment chosen
above. This is essential as now
the company has to focus only
on that specific target only.
The major targets of this
company are on basis of age
the target group is people
between 20- 35 age group.
Further on basis of income the
people who belong to middle
and high income group is
being selected. In addition to
this on basis of occupation the
major focus of Lucozade is
over the people belonging to
sports field. The major reason
for this is that sportsperson
require a high demand of
energy drinks.
Under the scheme of targeting
out of the demographic
segment the major target is the
males under the gender and
people belonging to age group
of 16- 30 as they more likely
attracted towards the use of
energy drinks. Under the
behavioural segment the major
target is the people who are
ambitious towards anything
from the personality aspect are
selected. Further the consumer
who are hard loyal towards the
company are being selected.
Positioning- this is a strategy
in which the company
For the purpose of positioning
the product among the
consumer the major focus is
emphasised over the content
of the energy drink. This need
to be health conscious as the
people will only have the
drink if it is good for health
(Išoraitė, 2016).
In respect to the strategy of
positioning the company
majorly focus on providing
best quality of the product in
the energy drink. This is
majorly because of the reason
that company wants that when
the consumer is asked to tell
one company providing best
quality product then it need to
be Red bull only.

Comparison or marketing mix
The marketing mix is defined as the combination of different strategies which are
essential for taking the effective decision relating to product and services. It is very essential for
the company to effectively decide for the various decisions to be taken for the betterment and
effectiveness of the company. The different between the marketing mixes of both companies are
as follows-
Element Lucozade energy Red bull energy drink
Product- this is defined as the
bundle of utilities which is
provided by the company in
order to satisfy the need and
requirements of the
consumers.
The product of the company
includes a wide range of
products being available fro
consumer to use it. These
product and services includes
the product like different types
of fresh juices, energy drink,
fresh smoothie and many other
different types of drinks and
fresh juices. The consumer is
much aware of the product
and services as the company is
effectively marketing.
The product of the company
includes a wide range of
options which is available to
the consumer and includes
energy drink, flavoured drinks
like coconut, cranberry,
blueberry and many other
flavours, sugar- free drinks
and many other different types
of product and services. Here
the brand loyalty is high as the
company is mainly focusing
on the quality of the product
(Massingham and Pomering,
2017).
Price- this is the amount of
money which is being charged
by the company against the
product or service which they
are providing to the
consumers.
This pricing strategy being
used by the company is the
use of the competitive pricing
strategy (Ramani and
Srinivasan, 2019). The major
reason for this is that under
this strategy the company
prices slightly higher than the
market average and this assist
Under the Red bull the major
pricing strategy used is the
premium pricing strategy. The
major reason for this is that
the company makes the use of
high quality products and for
this they charge high prices.

the company in crating good
image of the company.
Place- this is referred to as the
place or the centre through
which the company provide
their product and service to
the consumer so that they can
take and consume it.
The place within the Lucozade
energy drink focuses majorly
on both physical and online
business. This is majorly
because of the reason that the
place is the area or the
medium through which the
product is being transferred to
the end consumer for
consumption. For this
Lucozade energy has many
different physical stores all
over the globe. In addition to
this there are also many online
websites as well and provides
the online facility as well for
the consumers.
On the other side, red bull
energy drink is the company
which provides for both
physical and online stores. Bit
with respect to the current
situation of pandemic the
company is majorly focusing
over the online sales. Further
it is very essential for the
company to have presence in
both the platforms online as
well the physical stores
(Shaw, 2016).
Promotion- this is referred to
as the techniques through
which the company can
promote the product and
services in the highly
competitive market.
For promoting the product and
services of Lucozade energy
drink majorly focus over the
print media advertising and
sales promotion. Along with
this another strategy used for
the marketing of goods and
services is social media
marketing (Stead and
Hastings, 2018). This is used
because of the reason that in
current business environment
In against of this red bull
energy drink majorly focuses
over the digital and social
media marketing. The major
reason for this is that in the
current competitive
environment the latest trend is
of use of digital marketing
(Sulaiman, 2016). In addition
to this company also focus on
using some celebrities to
promote their product and

the use of digital marketing is
very effective
services of the company to a
great extent.
CONCLUSION
In the end it is concluded that marketing is the most essential and effective practice which
the company has to follow in order to secure a competitive position in the company. The major
reason for this is that when the company make effective use then this is beneficial for company
to attract more of the consumers. Further it was analysed that the use of STP is essential in
identifying the target market and how to position the product and service of company in market.
In the end it was also seen that marketing mix is also very essential for company to decide for the
strategy of company.
Recommendations
The major recommendation to Lucozade energy drink is to focus more on online selling
as with respect to the current pandemic majority of people are moving towards the online
shopping. In addition to this another major recommendation for the company is that they must
focus over the innovation in the energy drink so that it is liked by the consumers.
On the other side for Red bull energy drink the major recommendation is to do a
competitor analysis from time to time. The major reason for this is that if they will analyse the
working of competitors then this will increase the chances of getting a competitive position in
the market. Further another major recommendation is that they must also go for penetration
pricing as this will help them in penetrating in the market.

REFERENCES
Books and Journals
Datta, H., Ailawadi, K.L. and Van Heerde, H.J., 2017. How well does consumer-based brand
equity align with sales-based brand equity and marketing-mix response?. Journal of
Marketing. 81(3). pp.1-20.
Išoraitė, M., 2016. Marketing mix theoretical aspects. International Journal of Research–
Granthaalayah. 4(6). pp.25-37.
Massingham, P.R. and Pomering, A.A., 2017. Introducing Knowledge Management to the
Marketing Mix.
Ramani, N. and Srinivasan, R., 2019. Effects of Liberalization on Incumbent Firms’ Marketing-
Mix Responses and Performance: Evidence from a Quasi-Experiment. Journal of
Marketing. 83(5). pp.97-114.
Shaw, S., 2016. Airline marketing and management. Routledge.
Sinapuelas, I.C.S., Wang, H.M.D. and Bohlmann, J.D., 2015. The interplay of innovation, brand,
and marketing mix variables in line extensions. Journal of the Academy of Marketing
Science. 43(5). pp.558-573.
Stead, M. and Hastings, G., 2018. Advertising in the social marketing mix: getting the balance
right. In Social Marketing (pp. 29-43). Psychology Press.
Sulaiman, J.A., 2016. THE INFLUENCE OF MARKETING MIX 4A AND HEALTH
CONCIOUSNESS TOWARDS ETHICAL CONSUMPTION (Doctoral dissertation,
President University).
Online
Energy drink brands of Lucozade in Great Britain 2013- 2019 by number of users. 2019.
[Online]. Available through: <https://www.statista.com/statistics/312644/leading-
energy-drink-brands-of-lucozade-in-the-uk-by-number-of-users/>