MG412 Principles of Marketing: Red Bull and Lucozade Comparison Report

This report provides a detailed analysis of the marketing strategies employed by Red Bull and Lucozade, focusing on their segmentation, targeting, and positioning (STP) approaches. The core of the report examines the marketing mix (4Ps) – product, price, place, and promotion – for each brand, comparing and contrasting their effectiveness. The analysis includes demographic and geographic segmentation strategies, identifying the specific target audiences for each company. The report further explores the product offerings, pricing strategies, distribution networks, and promotional activities of both Red Bull and Lucozade. The conclusion summarizes the key findings, emphasizing the importance of STP analysis and the marketing mix in achieving marketing objectives, attracting customers, and driving brand success. The report references relevant sources to support its findings.

Principles of marketing

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Target market...................................................................................................................................3
Marketing Mix.................................................................................................................................5
Product........................................................................................................................................5
Price.............................................................................................................................................6
Place............................................................................................................................................6
Promotion....................................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Marketing is a broad concept which covers designing, launching, promoting of product. It
also covers analysing marketing situations. Marketing department is one of the most important
department of any organisation which help in identifying need and wants of customers and
further help in fulfilling those demands(Ing, Osman and Tze-Yin, 2020). Marketing principles
are those ideas and strategies which is applied by companies to perform those task which provide
benefit to their organisation. Red Bull is an energy drink which is founded in 1984 by Dietrich
Mateschitz and Chaleo Yoovidhya. It is headquartered in Fuschl am See, Salzburg, Austria.
Another company is Lucozade which is a soft drink manufactured company which was founded
in 1927 by William Walker Hunter. It is headquartered in Uxbridge, UK. The following report
covers Segmentation, Targeting and Positioning of these mentioned companies. This report also
covers marketing mix (4 P's) of Red Bull and Lucozade company.
MAIN BODY
Target market
STP analysis is done to identify which customers are suitable for manufacturing product of a
company. It identifies and target the customers. STP analysis is very important to conduct
because it is the main source which helps to know which type and behavioural of customers will
like or dislike the product.
Segmentation- It is the procedure where companies divide whole market in smaller
groups. A single group has all similar kind of customers and another group has their own similar
characterized customers(Bigo, Raj and Situmeang, 2021). This is done to identify who many
different characterised group of peoples are there in market which further help to produce those
product which satisfy that group which will provide biggest proportion in profit earning.
Segmentation of two different companies are explained below-
Red Bull Lucozade
Demographic Segmentation-
Age- red bull segmented the market based on
age is the customers between 16 year old to 30
year old. For their other products like red bull
Demographic Segmentation-
Age- Lucozade segmented their market mainly
for 15- 25 year old people. For further age
divisions they have another drinks.

soda they segment a group consist of below 16.
For middle and elderly aged people they have
the products who is having zero calorie and
cool breeze for elderly tastes.
Gender- They divided market for both males
and females but they specially focus on males.
Income- Their brand name and their prices
influence them to divide their market to occupy
high income people.
Occupation- Red Bull mainly segmented their
market for students, sports enthusiasts and
working professionals.
Geographic segmentation-
Area- Red bull segmented in Urban and Semi
Urban areas.
Cities- They consist metro politician cities.
Region- Red bull segmented in all religions
and cultures people.
Gender- They divide their market for both
males and females.
Income- The have segmented high income
customers.
Occupation- They mainly segmented young
sports people or athletics.
Geographic segmentation-
Area- Lucozade segmented their area in urban
as well as rural areas.
Cities- They consist main metro politician
cities as well as small towns.
Region- They have their drinks for all
religions.
Targeting- Selecting one group out of many groups are called targeting. In targeting
companies are clear that which customers will beneficial for them to serve their manufactured
products(Hosseini and et. al., 2019). Targeting strategy of two different companies are explained
below-
Red bull Lucozade
Red Bull main targeted customers are
teenagers and college students whose age is
between 13 to 21 year old and for their zero
calorie and cool breeze drinks they target
working professionals and sports man whose
Lucozade mainly targeted young professional
workers and sports man aged between 15- 35.
They target both males and females equally.
They target main cities of UK like
Birmingham, Liverpool, Manchester and

age is between 22 to 35 year old.
They target all genders but their main targets
are male customers.
To improve their visibility they target movie
halls, super markets and restaurants.
London.
Positioning- It consist of making good image of products of company in customers
mind(Hailu, Workneh and Kahissay, 2021). Positioning of two different companies are explained
below-
Red bull Lucozade
Their high prices help them to create a good
image in customers mind that they are offering
best quality.
Their different product line like Red bull
simply cola, red bull sugar free drink, red bull
orange editions and many more help them to
increase their brand value in customers mind.
Lucozade has high prices and best quality
energy drinks.
Their different product lines with different
taste like Lucozade orange, Lucozade pink
Lemonade help them to attract more
customers.
Marketing Mix
Marketing mix is the set of marketing tools which is used to achieve marketing objects of
an company. There are 4 elements under this basically called 4P's. Hence, 4P's of marketing mix
of two different companies are explained below-
Product
Product element of marketing mix states that what all products is sold by the company, what are
the features of that product, how to use and what will be happen after adopting particular
merchandise and many more(Mahendratmo and Ariyanti, 2019). Difference between two
companies on the basis of product are explained below-
Red bull Lucozade
Red Bull consist of energy drink with Western Lucozade is famous for its energy drinks. They

taste. Their drinks include caffeine, sucrose,
glucose and vitamin B. Their most famous
drink is Red Bull Sugar Free to match
youngster trends to intake less amount of
sugar. Company provide Red Bull Mixer
which is non- alcoholic drinks. Their different
flavours like Kiwi, Coconut and Blueberry
makes them more popular among their
customers. Red Bull drinks are sold in steel
cans having blue and white coloured cans and
symbol of 2 red coloured bulls on their cans.
offer glucose-carbonate soft drinks. They have
4 famous product line which are Lucozade,
Lucozade Energy, Lucozade Sports and
Lucozade Alert. They have 6 famous flavours
Original, Orange, Tropical, Lemon, Apple and
Cherry. Lucozade energy drink are packed in
thin steel cans which can be trashed easily after
use and cans has red colour with their name
“Lucozade Energy”. They are also sold in
plastic bottles.
Price
Price is the monetary value of a product. Every company set a fixed price for its product which is
to be charged from customers in case they want to buy them(Prabowo and Sriwidadi, 2019).
Pricing strategy of two different companies are mentioned below-
Red Bull Lucozade
The generally have high prices than their
competitors because they know that their
customers are loyal and they always prefer to
buy Red Bull even the company raise prices
because of their brand name and their quality.
They follow premium pricing strategy, this
strategy states that a company must set high
prices of their products as compared to their
competitors and this strategy is useful for
qualitative product.
Lucozade has higher prices because they offer
good quality of energy drinks in various
variations or various tastes like Orange, Kiwi,
Blueberries and many more. They guaranteed
to offer their soft drinks in full hygienic way
which further attract customers and influence
them to pay any price for Lucozade drinks. It is
recommended that they must lower there price
because they are not market leaders so this will
impact on them. If they charge little lower
price than market leaders then Lucozade will
become best company in energy drinks in
future.

Place
This element of 4ps cover distribution channel of a particular product(Gocłowska and
Piątkowska, 2020). It also describe the availability of product by which customers fell free to
buy their offerings. Differences between two companies on the basis of place are mentioned
below-
Red Bull Lucozade
Red Bull has wide distribution network at
worldwide level. Their products are available
at supermarkets, hypermarkets, night clubs,
retail outlets and casinos. They follow the
strategy of keeping their cans in Red Bull
refrigerator to attract customers. They are
available online in bulk packs.
Lucozade has active team specially assigned
for regulating the sales of their products. Their
products are sold in hypermarkets and
supermarkets. Due to their nature of energy
drink they are also available at health care
facilities like pharmacies. They are also
available online.
Promotion
Promotion cover all those activities which is related to increasing overall sell by attracting
customers and influencing them to but the product. Promotional activities are done to aware
targeted customers to make them believe that their products are better than other companies
products(Mahendratmo and Ariyanti, 2019). Key differences of promotional strategy between
two different companies are explained below-
Red Bull Lucozade
Their tag line “ Red Bull gives you wings” is
works as to attract people that the energy drink
are suitable for them to relax themselves. They
sponsor sports teams or events to attract their
main audience that is sport man. They have
Red Bull House of Arts where they encourage
artists to show their talent within 3 months at
their exhibition. They have their own
They have various medium of promoting their
brand like TV advertisements, newspaper,
social media adds and direct selling. They also
have a campaign with the name “YES” which
is conducted on TV. They use famous
personalities in their adds to attract their
customers, they specially use famous
sportsman. They are involved in direct selling

merchandise stores. Now a days they are
advertising on TVs in different way by using
animation adds to grab the attention of
customers.
which does not mean to sell product at end
customers but it means to sell product to
various organisations and stores.
CONCLUSION
From the above information it is clear that STP analysis is used to target customers by
making many segments in market and study each segment features and characteristics. Creating
good image by positioning is also beneficial to have loyal customers. On the other hand
marketing mix are those tools which is used to make appropriate strategy related to product,
place, price and promotion of products and brands. Marketing mix is done to attract more
customers to gain more profit and popularity.

REFERENCES
Books and Journals
Bigo, C., Raj, A. and Situmeang, R.R., 2021. Segmentation, Targeting, Positioning (STP),
Communication and Price Strategies on Consumer Purchasing Decisions at PT. Alfa
Scorpii Medan. Jurnal Mantik. 4(4). pp.2370-2375.
Gocłowska, S. and Piątkowska, M., 2020. Satisfaction evaluation model in the light of marketing
mix theory applied to fitness clubs in Poland. Journal of Physical Education and
Sport. 20. pp.2036-2043.
Hailu, A.D., Workneh, B.D. and Kahissay, M.H., 2021. Influence of pharmaceutical marketing
mix strategies on physicians’ prescribing behaviors in public and private hospitals,
Dessie, Ethiopia: a mixed study design. BMC Public Health. 21(1). pp.1-15.
Hosseini, S. and et. al., 2019. Cloud computing utilization and mitigation of informational and
marketing barriers of the SMEs from the emerging markets: Evidence from Iran and
Turkey. International Journal of Information Management. 46. pp.54-69.
Ing, P., Osman, Z. and Tze-Yin, L., 2020. Marketing Mix and STP Strategies: An Exploratory
Study into Grocery Retailers in Malaysia. Asian Journal of Entrepreneurship. 1(4).
pp.129-143.
Mahendratmo, B.P.J. and Ariyanti, M., 2019. Analysis Of E-Marketing Mix To Consumer
Purchase Decisions Traveloka. Asian Journal of Management Sciences &
Education. 8(1).
Prabowo, H. and Sriwidadi, T., 2019. The Effect of Marketing Mix toward Brand Equity at
Higher Education Institutions: A Case Study in BINUS Online Learning
Jakarta. Pertanika Journal of Social Sciences & Humanities. 27(2).