MG412 Principles of Marketing: Lucozade Energy vs. Red Bull Report

This report provides an executive summary comparing the marketing principles of Lucozade Energy and Red Bull, focusing on segmentation, targeting, and positioning (STP) analysis, alongside a detailed examination of the marketing mix elements: product, price, place, and promotion. The report, based on secondary analysis, evaluates the effectiveness of each company's strategies within the competitive soft drink market. It highlights their distinct approaches, such as Lucozade's focus on sports and hospitality markets and Red Bull's global brand presence and sponsorships. The analysis includes the application of marketing models like Levitt's model and Aaker's brand personality to assess product and brand strategies. The report concludes with recommendations, suggesting strategies for Lucozade to retain customers and for Red Bull to expand into sports drinks to capture a larger market share, offering valuable insights into the competitive dynamics and strategic choices within the energy drink industry.

PRINCIPLES OF
MARKETING
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EXECUTIVE SUMMARY
The aim of present report is to compare and understand the various aspects of marketing
principles such as Segmentation, Targeting and positioning analysis along with elements of
marketing mix. It comprises of comparison of two companies which offers soft drinks to market
being identified within same industry that is Lucozade energy and Red Bull energy drink. Both
of these firms operates their business at multinational level and faces tough competition form
each other. The elements of marketing mix that are being involved in present report are product,
price, place and promotion for their product that is soft drink (Asseraf, Gnizy and Shoham,
2020). The report comprises of secondary analysis along with certain recommendations such as
adoption of those strategies which helps Lucozade in retaining more and more customers
whereas on the other hand Red Bull is being recommended with an option of expansion into
sports drinks so to have high customer segment with large market share.
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Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION ..........................................................................................................................4
TASK 1: Analysing the effectiveness of the marketing mix for given company or brand.............4
Overview of Companies:.............................................................................................................4
Target Market:.............................................................................................................................5
Product /Brand............................................................................................................................6
Price.............................................................................................................................................7
Place (Distribution).....................................................................................................................7
Promotion....................................................................................................................................8
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9
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INTRODUCTION
The term principles of marketing refers to a concept of marketing mix which comprises
details about company's product, price, place and promotion which are very essential in order to
know the feasibility of company's offerings to market (Harvey and Sanchez, 2018). Analysing
each and every element is a tedious and important task for companies before launching of
product into market. This comprises about all those aspects which has an influence upon
company's products or services for its demand in market by potential customer. The concept of
marketing also comprises of marketing plan which can be done through STP analysis that stands
for Segmentation, targeting and Planning. The present report comprises of a comparison based
upon above discussed marketing mix that is product, price, place and promotion along with
target market of companies. The report also discusses about STP analysis of both the comparing
organisations that are Lucozade Energy and Red Bull Energy drink. Both the firms deals in
offering of same product that is selling of energy drinks to market and belongs to same industry
as well. Lucozade and Red bull are strong competitor of each other who commenced their
operations in year 1927 and 1987 respectively. The report coves comparison of both in terms of
marketing mix and STP analysis.
TASK: Analysing the effectiveness of the marketing mix for given company or
brand.
The term marketing mix refers to a model which comprises of several elements such as
product, price, place and promotion that are necessary to evaluate before final launching of
product or service into market. It is a specific tool which is used by every organisation in order to
achieve its marketing goals in a market which is a target for the company in terms of selling their
products or services (Hollensen and Opresnik, 2019). It is very essential to bring effectiveness
within such marketing mix in order to have success or adequate selling of decided product or
services. The comparison of all elements of marketing mix in terms of Lucozade energy and Red
Bull energy drink is done below:
Overview of Companies:
Lucozade Energy
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Lucozade energy is a UK based company that offers soft drinks to market by
manufacturing and distributing them being established in year 1927. In the year 1938 the
company was being acquired by Beecham which is a pharmaceutical company based in Britain
and started offering energy drinks for the use of sick people in market. The drinks are being
manufactured with a solution of water and glucose with a taste of orange flavour offered in a
glass bottle wrapped with cellophane in yellow colour.
Red Bull Energy drink:
Red bull is an Austrian based company being established in year 1987 that offers various
types of energy drinks having highest share in market across world. The company initially was
founded in a partnership form with Chaleo company. The organisation Red Bull usually spends
approximately 30 per cent of its income upon several sponsorships or on promotion of its
products.
Target Market:
The analysis for target market involves Segmentation, Targeting and Positioning of a
product or service which a company is offering into market. The analysis of target market
through STP for both Lucozade energy as well as Red Bull energy drink is mentioned below:
Segmentation:
This involves market segmentation of market based upon company's product or service,
targeting those customers to which product is being sold (Kumar and Almoula, 2020). This
involves segmenting large audience into small groups is the main focus of segmentation.
The segmentation adopted by Lucozade energy is based upon geographic, behavioural as
well as demographics which allows them to acquiree required data in order to know its target
market effectively. On the other hand Red Bull follows behavioural, psycho-graphic and
demographic form of market segmentations for its drinks.
Targeting:
This includes identification of customer group for which product are being manufactured
on the basis of market size, accessibility, profitability, difference, etc. This brings a decision in
respect to attract more and more customers (Kwitonda, 2020).
In relation to Lucozade energy the company targets two various markets that is sports and
hospitality market. The company generally offers its drinks to the age group of 18 to 30 years
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people in market. On the other hand Red Bull targets those nations which possess negligible or
no market targetting students of colleges or teenagers.
Positioning:
The positioning in analysis comprises of customer perseverance which they carries for
company's product or services (Lahtinen, Dietrich and Rundle-Thiele, 2020). This involves
differentiating product or services from one company to other in order to have unique
identification towards product or services. This allows customers to analyse various attributes of
item which they are going to buy from market.
In relation to Lucozade, the company offers its drinks to athletes, sportspersons as well as
to the sick patients. On the other hand Red bull offers its products to middle aged people
specially in the category of Zero calorie drinks.
Product /Brand
Product refers to a specific item that the company is offering into market for the purpose
of generating income and profits from its sales (Sharma, Nasreen and Kumar, 2019). It is very
essential to have proper analysis and evaluation of company's product. This can be done by
applying Levitt model and Aaker's brand that describes about shape, packaging, colour scheme
or personality which is being followed by a brand for its product or services.
Levitt Model:
The Levitt model is based upon the satisfaction level of a product which a company is
offering having five different levels. The innermost level of a model that is core benefit is most
required by a customer in order to satisfy their needs related to such product. The levels of such
model comprises of core benefit, basic product, expected, augmented and last is potential
product.
Aaker's Brand personality:
The model describes a specific framework which depicts different traits and profiles of a
particular brand comprising five various dimensions in a facet set. This comprises of sincerity,
excitement, competence, sophistication and last is ruggedness. This helps them shaping up of a
way in which customers possess some feeling for company's product or services
Lucadoze energy Red Bull Energy
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The drinks of Lucadoze is designed in a way
that is helpful for sportspersons s well as sick
patients. It is made up of sugar, glucose and
water.
The company offers such drinks which are free
not carbonated. The ingredients that are being
indulged in manufacturing process such as
sucrose, Vitamin B,glucose, Caffeine and
taurine. Company also offers sugar free drinks
to market for those who are suffering from
diabetes and still wants to have some energy.
Price
This refers to a cost in terms of money which is involved in manufacturing and
distribution of produced items along with some amount attached in a form of profit for the
company. The various forms of competitive pricing research comprises of price penetration,
price skimming, premium pricing, economy pricing, etc.
Lucadoze energy Red Bull Energy
The company as of now is adopting price
skimming method for charging its product in
order to develop high brand image. However
can adopt price penetration so to cater more
customer segment along with attracting new
buyers for their drinks.
The company Red Bull is adopting price
penetration method for selling up of its drinks
to customers. However the Red Bull can
charge premium pricing for its products
because due to its market share customers are
ready to pay premium prices for Red Bull.
Place (Distribution)
This involves a market place where the company offers its products or services for sale.
There are two forms of market place here company can sell that is through physical stores or via
online platform (Taylor, 2019).
Lucadoze energy Red Bull Energy
Lucadoze energy offers its products via retail
stores which is stocking company's drinks for
sale. Company has a chain of competent team
that looks for stocking of their products into
Red Bull offers its drinks through having
display in various convenience stores,
supermarkets, night clubs, retail stores or even
in casinos and bars. The company stocks its
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their outlets such as shopping malls,
hypermarkets, super markets or various
different outlets. It is easy for customers to find
the products of Lucadoze in market due to its
easy accessibility.
products in its refrigerators which are
exclusive to the company and helps them in
attracting more customers. On the other hand
Red Bull also offers its drinks via online
platform so that customers can easily find their
needs and have accessibility of it.
Promotion
This comprises of advertisement for company's product or services in order to attract
more customers.
Lucadoze energy Red Bull Energy
Lucadoze energy adopts direct selling or
campaigns for promoting its product, social
media or endorsements are also done by
company to promote their drinks.
Red Bull conducts several promotional
activities such as shows,videos, music
festivals, etc. and also promotes via magazines
or online stores.
CONCLUSION
From the present report it can be concluded that marketing mix and STP analysis helps
companies in order to know feasibility and acceptability of their product by market or customers.
There are 4p's which helps businesses in order to get an idea for their offerings before launching
of any new or in order to make any modification in existing products. This comprises of product,
price, place and promotion. On the other hand target market analysis comprises of segmentation,
targeting and positioning of a product that gives a clear picture in order to attain marketing
objective.
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REFERENCES
Books and Journals
Asseraf, Y., Gnizy, I. and Shoham, A., 2020. International marketing doctrine: the use of guiding
principles. International Marketing Review.
Harvey, K.E. and Sanchez, L.M.P., 2018. Digital demands convergence of strategies, media, and
messages: firms mix content, social, and Native marketing. In Diverse Methods in
Customer Relationship Marketing and Management (pp. 137-162). IGI Global.
Hollensen, S. and Opresnik, M.O., 2019. Strategy Formulation in the Marketing Planning
Process. World Scientific Book Chapters, pp.139-202.
Kumar, S. and Almoula, T.S., 2020. A comparative study of customer service level based on
service marketing mix (7Ps) in selected public and private sector banks in Bhopal, MP,
India, by using mystery shopping as a tool. International Journal of Financial Services
Management. 10(3). pp.239-267.
Kwitonda, J.C., 2020. The Marketing Mix and Hygienic Barbershop Use: A Formative Study.
Social Marketing Quarterly. 26(4). pp.361-377.
Lahtinen, V., Dietrich, T. and Rundle-Thiele, S., 2020. Long live the marketing mix. Testing the
effectiveness of the commercial marketing mix in a social marketing context. Journal of
Social Marketing.
Sharma, Y., Nasreen, R. and Kumar, A., 2019. Role of social network in defining the impact of
marketing-mix on satisfaction from food items at subsistence marketplace. Indian
Journal of Marketing. 49(2). pp.7-24.
Taylor, V., 2019. Marketing Plan for A Beverage Accessory Startup (Doctoral dissertation,
CALIFORNIA STATE UNIVERSITY, NORTHRIDGE).
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