Marketing Mix Analysis: Comparative Study of Lucozade and Red Bull

This report offers a comprehensive analysis of the marketing mix, focusing on the contrasting strategies employed by Lucozade Energy and Red Bull. It begins with an introduction to the marketing mix, emphasizing the crucial role of product, price, place, and promotion (the 4Ps) in achieving organizational goals. The report then delves into a detailed examination of the target markets for both brands, highlighting how Lucozade Energy targets sports enthusiasts and athletes through advertising and sponsorship, while Red Bull strategically segments its market geographically and demographically. The product analysis utilizes Levitt's model to evaluate the core needs, actual product features, and augmented product strategies of both brands. Price comparisons reveal differing cost structures and pricing strategies, with Red Bull employing competitive pricing and Lucozade focusing on cost reduction. The 'place' element explores distribution channels, emphasizing Lucozade's UK-focused distribution and Red Bull's global presence. Finally, the report examines promotional strategies, noting Lucozade's use of advertising and sponsorship and Red Bull's extensive promotional spending and slogan-based marketing. The conclusion synthesizes the key findings, underscoring the importance of the marketing mix in driving sales and brand value.

Principles of Marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Target Market.........................................................................................................................1
Product/Brand.........................................................................................................................2
Price........................................................................................................................................3
Place.......................................................................................................................................4
Promotion...............................................................................................................................5
CONCLUSION................................................................................................................................7
REFERENCE...................................................................................................................................8

INTRODUCTION
Marketing mix refers to the appropriate foundation model for businesses which consist
different types of marketing principles such as product, price, place and promotion. Therefore,
the marketing mix can be defined as the tool which is used by firms to achieve organizational
goals and objectives in order to target market effectively. In this assignment two organizations
has been selected named as Lucozade Energy, it is a soft drink Japanese brand which was formed
in the year of 1927 in UK. Whereas, Red Bull is an energy drink Austrian organization was
formulated in 1987. Moreover discussion will be based on effectiveness of marketing mix in
context with both organization (Ateke and Kalu, 2016). Lastly knowledge STP marketing
planning process will get covered.
TASK 1
Target Market
Within the term of marketing segmentation, targeting and positioning is a wide concept
that simplifies and explain the entire process of target market segmentation. In order to target
market is the effective process which is done by large number groups of people. With the help of
this firm can easily identify different types of segment stages which is more profitable in order to
run business in a smooth manner.
In context with Lucozade Energy, it is generally known as sports energy drink. In order
to entire target market they always use advertising and sponsorship as a tool for promote its
product at large level. On the other hand, their advertisements on TV generally keep pace with
their changes in target market. For better knowing about this brand so for the very first time it
used this drink to increase energy of sick and ill children so that they were always first target
market including mothers and children. But during the current scenario this company focusing on
sports lover and athletes therefore, Daley Thompson and Olympic decathlon champion showed
in the TV advertisement. By having this type of advertisement they can easily target teenagers at
new market and able to achieve its desired goals (Bhattacharya, 2016).
In the case of Red Bull for better target market generally based on population which is
targeted by an organization in order to sell their energy drinks in a proper way. Along with this,
for making better image in the market era they always target urban and rural areas globally. By
following assorted scenario they always use demographic and geographic segmentation in which
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they target 16-30 and 30-40 age group of people along with youngsters, newly married couple
but no children's. Therefore, overall targeted market of this organization is based on appropriate
segmentation by which they can develop good image at marketplace and able to satisfy
customers needs and wants appropriately.
This can be said that both firms are using different criteria to gain better target market in
order to make huge profits as well. That's why it is more important tool to develop unique target
market which help firms to increase their value in an appropriate manner (Baker and Saren,
2016).
Product/Brand
In order to analyse about products of two selected brand there is Levitt's model can be
easily used which shows about shape, colour, size and packaging of particular goods, which is
going to be discussed below:
This model consist different types of product level, those are as follows:
Core need: In reference with Lucozade Energy, its product includes glucose tablets and
energy drinks along with attractive water bottles. So at the first level of this model core needs
based on giving benefits to customers by delivering desired products. As per this Lucozade
Energy required to have innovative shape of their bottles and should make more energetic drink
for people so that they can achieve its target.
In relation with Red Bull, deals with non-carbohydrate energy drinks along with it
contains Caffeine, taurine, glucose which is mainly needed by sports people, workaholics and
parties as well. According to this model, in this initial level they give better drinks to their
customers and increase their confidence towards brands by applying different variants like
colour, shape which attracts the most.
Actual product: This is second level of this respective model which shows the reality of
product given by particular brand. In context with Lucozade Energy drink they always design
and product features in a best way which describes the actuality of goods. On the other side Red
Bull also use this step to identify its product colour, aroma, texture, ingredients and so on (Felix,
Rauschnabel and Hinsch, 2017).
Expected product: In this third level Lucozade Energy mainly focus on alternatives
towards customer's expectation from this firm. Along with this they successfully develop those
sorts of goods by which they can fulfil customer's desire in a proper way. At the same time Red
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Bull should consider basic expectation of product style from the consumers. With the help of this
they can develop better ways to achieve its goals.
Augmented product: According to this fourth level both firms are required to increase
couple of benefits and offerings to customers. It will help firm to make proper feature and
designs of their products and show them in attractive way.
Potential product: In this final level of this model both firm as dealing with energy
drinks considered on those points by which they can modify in future in order to increase future
sales in a better way. For example every firms has their own variety of products together with
every product needs to be up dated so that they can influence customers properly.
Therefore, it can be said that both both firms are giving their performance at marketplace
in a different ways by applying so many emotional function level (Lacoste, 2016). With the help
of applying unique strategies they can increase their brand value and able to achieve successful
goals. Apart from this, as per the Aaker's brand personality framework both brand have sincerity
personality as they are hones and down to earth.
Price
Lucozade Energy: It is considered as a historical firm so that it has more experience to
gain accurate knowledge about how to reduce cost of producing compared with Red Bull.
Lucozade Energy Red Bull
£0.78~1.30 £1.35~2.02
10.0p~20.5p 38.9p~54.0p
As per the above table this can be said that Red Bull has more cost of producing large
number of product into the marketplace. On the other side Lucozade energy drink as they have
experience but they deals of their products within the UK as compare to other firm. So that
Lucozade energy should use simple strategy of price effectively.
Red Bull: This firm has large number of competitors within the energy drinks whereas
the pricing strategy of this brand is based on competitive pricing. By having famous identity or
image they can charge premium for their goods and consumers will purchase it as per their good
quality. As this brand is most expensive and famous so that, it is really on demand at
marketplace along with it develop competition for another brands like Cloud 9, Tzinga and so
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on. In order to increase brand image in a more better way they should adopt flexible working
strategies by which customers can get product at every level (Kotoua and Ilkan, 2017).
Place
It refers to the dynamic and fast moving area of entire marketing. In reference with
Lucozade Energy, they generally covers large assortment of fascinating topics and always
concerned with movements of goods from on place to another. This firm sold its items in so
many places within the UK like retailers such as sports outlets and so on. According to the
channel management this firm can increase its sales through developing numerous marketing
needs at marketplace.
Illustration 1:
Source:
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Illustration:2
Source:
In context with Red Bull according to the marketing mix they have presence across the
171 countries, by which firm has successfully sell and managed over 61 billion cans worldwide.
Therefore, the availability of products of Red Bull in nightclubs, supermarkets, grocery stores by
which they can get huge success through satisfying customers needs. With the help of channel
marketing this firm can develop numerous ideas and able to sell their products to customers
across the globe. Therefore, this management help firm to make strong relationship with
customers into market area.
Promotion
In context with Lucozade, it is very good while using different types of advertising and
sponsorship considered as tool for better promotion. If talk about past method of communication
this firm used they always used TV in order to bring better ways to promote its product at
various level (Ottman, 2017). Along with print media was the better option for them to attract
children and teenagers as well. As per the present scenario they are using its own websites in
order to build strong relationship with customer's by which they can achieve its goals. Apart
from this they always target those customers who are totally conscious about their health.
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In the case of Red Bull, they spends millions of dollars yearly to promote its product and
develop best memory within consumer's mind. For past communication method they used slogan
which successfully changes customers mind and develop innovative things in their mind. By
applying sorts methods they can easily communicate and able to achieve better strategies at
marketplace. At present they are using different types of promoting tools such as social media,
online websites and so on. With the help of this they can make good relation with customers and
able to target those people who likes their drinks and increase firms value in market (Notta and
Vlachvei, 2015).
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CONCLUSION
According to the above respective assignment it has been concluded that, principles of
marketing mix is an essential aspect for every firm to measure overall conditions of market and
encourage them to increase entire sales of their products and services. In this assignment two
organisation has been choose which shows different types of marketing mix channels by which
A firm can easily differentiate its product from B firm. Therefore, 4 P's of marketing mix are
necessary for firms to run their business in a smooth manner.
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REFERENCE
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