MG412 Marketing Mix Analysis: Red Bull and Lucozade Comparison

This report provides an executive summary and detailed analysis of the marketing strategies employed by Red Bull and Lucozade, two leading multinational energy drink companies. It explores how these companies utilize the marketing mix, encompassing product, price, place, and promotion, to target specific consumer segments and achieve business success. The report delves into the target markets of both brands, examining their demographic and psychographic segmentation approaches. It applies Levitt's model to analyze the products and brand values, comparing aspects like shape, packaging, and color schemes. Furthermore, the report discusses the pricing strategies, including value-based, cost-based, and market-based pricing. It also examines the channels of distribution and promotional strategies, including advertising and digital marketing, employed by Red Bull and Lucozade. The conclusion highlights the importance of marketing in achieving organizational goals and coordinating with other business functions to drive profitability and market share.

PRINCIPLES OF MARKETING
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EXECUTIVE SUMMARY
This report covers the marketing mix which are price, place, promotion and products.
These marketing mix helps to develop effective marketing offerings which are need to address
customer needs and wants and achieve business success. In the context of the company Redbull
and Lucozade which are multinationals organisation dealing in energy drinks. This report covers
that how these companies uses different marketing mix in order to promote the goods and
services to the end customer in order to accomplish business success and profit share goals.
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Table of Contents
EXECUTIVE SUMMARY ............................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Target market of Redbull and Lucozade................................................................................4
Use levitt's model for analysing the Products offered and brand value of Redbull and
Lucozade.................................................................................................................................5
Pricing strategies used by Lucozade and Redbull .................................................................6
Channels of distribution.........................................................................................................7
Promotional strategies of Lucozade and Redbull ..................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9
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INTRODUCTION
This report defines that how marketing is an important attribute which contribute for
accomplishments of organisational goals. Marketing is the only tool which helps to engage to the
target customers in order to make profitable relationships. Business uses marketing as a functions
which coordinates with different other functions in order to achieve business success. In the
context of Lucozade and Redbull which offers energy drinks to its target customers. Redbull is
an Australian company while Lucozade is a company which was first established in japan and
then it was further developed in UK as Glucozade. This report cover all the P's of marketing mix,
including how products, place, promotional strategies, and the pricing strategies of Lucozade and
Redbull (Alserhan, 2015).
MAIN BODY
Target market of Redbull and Lucozade
As both the companies Redbull and Lucozade are the multinational organisations and as
global leaders it becomes important for the companies to analyse the needs and wants of each
customers residing in different locations. The research and development department of Redbull
and Lucozade should the target customers. With the increase in the living standards of the
people, where customers looks for products which gives instant energy as people are busy in the
professional work lives and wants indulge in the recreational and sport related activities. Redbull
and Lucozade renders energy drinks to its target customers. Redbull focuses on segmenting the
customer in accordance to the demographic factors which includes age, income, eduction,
religion, which helps determine exact target customers of Redbull who are interested in
consuming energy drink offered by Redbull (Berkowitz, 2021). Whereas the Lucozade segments
the target customers on the basis of demographic and psychographic factors which involves
segmenting them customers on the basis of lifestyle pattern of the people, as Lucozade offers
energy drinks especially for the purpose of boosting the energy during playing any sports. By the
changing lifestyle pattern of people where people are interested in playing sports, Lucozade
rightly influences such people in order to satisfy target market needs and demand.
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Use levitt's model for analysing the Products offered and brand value of Redbull and Lucozade
Levitt's model is defined by task, structure, people and technology used for developing
the product. Before developing the product, these factors are been analysed in order evaluate the
effectively. These factors are as:
Task: Task involves selecting the right purpose of the product development involving the
purpose of the product and services. Redbull and Lucozade uses levitt's model of products
development in order to define the purpose of the products and services offered by the company.
People: It involves choosing the right customer who are interested to purchase the goods and
services offered by the company. Using levitt's model of product development, Redbull and
Lucozade defines the consumer market in order to focus upon these target segments to evaluate
and render them the most effective market offerings (Brown, 2015).
Structure: Structure is defined by how the product actually looks like it defines the description
of products. Redbull offers product varieties in different flavour including sugar
free,watermelon, no calories. Whereas Lucozade offers products in the product varieties of
products including raspberry, orange, watermelon and strawberry (Bühler and Nufer, 2015).
Technology: For products development, Redbull and Lucozade uses advanced technologies in
order to produce the products of the company. Advanced technologies includes cloud based
computing and RFID and other modern technologies in order to achieve production efficiencies.
BASIS LUCOZADE REDBULL
Shape Lucozade offers products inn plastic
bottles. They also encourage the idea
of recycling these plastic bottles by the
company to save the environmental
concerns
Redbull offers the energy drinks
which are eassy to dispose.
Packaging The packaging of Lucozade using
different vibrant colour which
encourages customers to purchase the
products.
In the packaging of Redbull there is
an symbol of bull which reflects
energy.
Colour scheme The colour schemes of Lucozade The colour scheme of Redbull
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involves using different colours each
showing specific flavour of the
product.
involves using red and blue colours,
and yellow depending on the flavours
of the drink.
Pricing strategies used by Lucozade and Redbull
Setting the right prices of the products and services is an important aspects as it helps to
determine profit company. Lucozade and Redbull uses different pricing strategies which sbes
suits the target customers perception and organisational objectives. Different pricing
strategies used by Redbull and Lucozade are as:
Value based pricing
Value based pricing strategies are defined by the pricing strategies which matches to the
customer perception. It is important to determine that what actually customer perceives from the
products and services. As redbud and Lucozade are the multinational organisation, so it becomes
important for these companies to address the customer perception. Value based pricing strategies
helps to achieve competitive advantage, as when customer feels that there value matches to the
prices of the product, it influences them to purchase the products of the company than that of
competitors (Cummins, Loe and Peltier, 2016).
Cost based pricing
Cost based pricing involves evaluating the cost incurred in production of the products and
services and the setting the pricing of the product and services covering the cost the of
production. Its is the most important pricing strategy used by Redbull and Lucozade, which
helps to cover the cost incurred in the production and achieve profitability goals business of the
business. When business uses these pricing strategies it helps to increase the profits over the cost
of production (Kotler and Armstrong, 2015).
Market based pricing
Market based pricing strategies involves setting the prices in accordance to the current
market prices of the similar products. Redbull and Lucozade uses these pricing strategies in order
by evaluating the current demand of products and services. It follows the concept of law of
demand, that when demand of the products and services is higher the prices are set low in order
to achieve achieve the sales margin and strong customer base but when the demand for the
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products are lower in the market the prices are set low in order to cover the cost and achieve
profit goals.
Channels of distribution
Channels of distribution involves producing and delivering the value to the end
customers. Redbull and Lucozade uses effective supply chain management which involves
choosing the right supplier and delivering the value to the customers at the right time. Redbull
and Lucozade ensures that the supplier selected render the products and services at the right time
with lowest possible cost. It involves choosing the right delivery channels which involves timely
delivering the products to the end customers. Redbull and Lucozade uses the most effective
channel of distribution as when these distribution channels are effective, it helps to rightly
deliver the value to customers and maintain the flow of stock with the company (Lilien,
Rangaswamy and De Bruyn, 2017).
Promotional strategies of Lucozade and Redbull
Promotional strategies involves the different communication channels used by Redbull and
Lucozade in order to promote the goods and services of the company and render complete
information of the customers about the market offerings of the company. These promotional
tools helps to engage with the target customers by informing them about the prices, policies
market offerings and offerings of the company to the target customers. Theses tools involves
advertising and other digital marketing platforms in order to promote the goods and services with
the target customer. Different advertising tools involves promote media, advertising in television
commercial, mail media. With the increase in digital platforms, Redbull and Lucozade uses
internet platforms like Facebook, Instagram, YouTube, LinkedIn in order to effective
communicate the market offerings of the companies and helps to establish strong customer base
by influencing them with the effective marketing campaign and increase the profit and sales
goals (Pride and et.al., 2017Tuten, 2019).
CONCLUSION
Thus, marketing is an important tool which are need to achieve target market share and
profit goals. Business uses marketing as a function in order to formulate strategic decisions about
the correct marketing mix that has to be delivered in order to attain customer needs and wants.
Marketing is also called the main function which coordinates with different other functions of the
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business like human resource, finance, IT, sales and other in order accomplish organisational
objectives. It aloes helps to evaluate profit attained, sales margin and the business position the
market place.
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REFERENCES
Books and journal
Alserhan, B. A., 2015. The principles of Islamic marketing. Ashgate Publishing, Ltd..
Berkowitz, E. N., 2021. Essentials of health care marketing. Jones & Bartlett Learning.
Brown, B. S., 2015. A Multiple Discriminant Analysis Prediction of Performance in Principles
of Marketing. In The 1980’s: A Decade of Marketing Challenges (pp. 112-115).
Springer, Cham.
Bühler, A. and Nufer, G., 2015. Marketing in sports.
Cummins, S., Loe, T. and Peltier, J. W., 2016. Using sales competition videos in a principles of
marketing class to improve interest in a sales career. Journal for Advancement of
Marketing Education, 24(Special Issue on Sales Education). p.16.
Kotler, P. and Armstrong, G., 2015. Principles of marketing-global edition.
Lilien, G. L., Rangaswamy, A. and De Bruyn, A., 2017. Principles of marketing engineering and
analytics. DecisionPro.
Pride, W. M. and et.al., 2017. Marketing Principles with Student Resource Access 12 Months.
Cengage AU.
Tuten, T. L., 2019. Principles of Marketing for a Digital Age. SAGE.
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