Principles of Marketing: A Comparative Study of Red Bull and Lucozade

This report offers a comparative analysis of the marketing strategies employed by Red Bull and Lucozade, two prominent brands in the energy drink market. The report begins with an executive summary and an introduction to the principles of marketing, emphasizing the importance of marketing mix elements in reaching target consumers and gaining market share. The main body delves into a detailed comparison of the two brands, focusing on their target markets, product analysis (including packaging, labeling, and product variations), price analysis (considering pricing strategies and competitor analysis), place analysis (examining distribution channels and global presence), and promotion analysis (covering advertising techniques and promotional activities). The report highlights the unique approaches of each brand, such as Red Bull's focus on aggressive promotional strategies and Lucozade's emphasis on innovative product development. The conclusion summarizes the key findings, comparing the market positions and promotional effectiveness of the two brands and provides recommendations for improvement. The report also acknowledges the environmental concerns and the sustainability efforts of both brands.

Principles of
Marketing

Executive Summary
In this document, there is a comparison between two brand and these are Redbull and
Lucozade, where it is observed that both of them have their own type of distinctive approach to
target their customers. Also, product, price, place and promotion analysis is conducted which has
helped in understanding the behaviour of both the companies.

Table of Contents
Executive Summary.........................................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY ..................................................................................................................................4
COMPARISON OF BRANDS TARGET MARKET.....................................................................4
Product Analysis ....................................................................................................................4
Price Analysis ........................................................................................................................5
Place Analysis .......................................................................................................................6
Promotion Analysis ...............................................................................................................7
CONCLUSION AND RECOMMENDATION...............................................................................8
REFERENCES .............................................................................................................................10
Books and Journal................................................................................................................10

INTRODUCTION
Marketing refers to the process adopted by various organisations to enhance the demand
for their products and services in the target market. In order to do the same, the companies resort
to principles of marketing. Principles of marketing are an essential part of marketing process as it
helps the company to promote its products and services in the market environment. These
principles guides the company to reach to its target consumers effectively and efficiently and
influence them to purchase the offering provided by the company which in turn will allow the
company to gain a higher market share in its target market. The report talks about the marketing
mix of two very popular brands i.e. Red bull and Lucozade Energy Drink. Red bull is an energy
drink offered by an Australian company and enjoys one of the largest market share in its
respective industry it covers 2% of carbonated soft drinks in united states whereas Lucozade is
sport/energy drink offered by Suntory which a Japanese company and covers 66% of the sports
drink market. According to the recent market trend of high growth of energy drinks, both the
brands have high scope of growing in near future. Proper analysis of both brand is discusseed in
this report.
MAIN BODY
COMPARISON OF BRANDS TARGET MARKET
Target market can be referred to as the market segment that a particular company is
planning to cater to. It involves the individuals that are being targeted by the organisation in
order to market their products and services to the same. In respect of Redbull, it currently targets
teenagers, youngster, individuals engaging clubbing and parties, travellers, sportspersons etc.
which are of age between 18 to 30 years and have hobbies of engaging in energy taking sports
and activities and it works with its campaign “Red bull gives you wings.” On the other hand,
Lucozade targets businessmen and employees, Adventure lovers, businessmen(middle-aged) etc.
and target the age group of 25 to 40 years with the hobbies of engaging in business activities and
need to look cool and energetic in front of everyone. Lucozade has its soft drink partnership with
Love Island, ITV2 reality show.
Product Analysis
Product analysis is one of the prominent part of marketing mix. It basically involves the
analysis of a product's specifications, quality of the product, availability in the market, overall

appearance of the product etc. Red bull's products acts as stress buster and helps to reduce the
fatigue of the individuals consuming it whereas Lucozade's products main focus is to boost and
increase the energy of consumers (Palmatier and Crecelius, 2019). In terms of packaging and
labelling, Redbull comes in a blue recycable can whereas Lucozade's products are packed in
differently coloured bottles and cans that are portable. Lucozade has a variety of range to offer
to its consumers such as Original zero, strawberry and watermelon, Sports orange, lemonade,
Citrus Chill etc. whereas Redbull offers various editions to its consumers such as pear edition,
coconut edition, orange edition, green edition, peach edition, blue edition etc. Lucozade is a very
creative and innovative brand (Porral and Stanton ,2017). On the other hand Redbull is a brand
that majorly believes in showcasing its innovation and creativity while marketing the product
rather than showing the same while producing and developing it. Lucozade represent itself in the
market as a brand that promotes health and fitness whereas Red bull represent itself as a
powerful and strong brand that can help the consumers to eliminate their mental as well as
physical stress. Lucozade's products were non recyclable earlier and this was the same reason
why the products were banned in America but now the company has started products that can be
recycled whereas Redbull's products are completely recyclable in nature. According to Levitt's
model of a brand, both the brands have their own unique shape, packaging and colour targeting
the both functional and emotional needs of their customers. As lucozade is a innovative and
creative brand and show its creativity in products which satisfy the functional needs of the
customer by getting better product and boost their energy in better way. Red bull likes to show
its innovation and creativeness in marketing by which it satisfy the emotional needs of its
customer by creating a brand image in minds of their customers. Aaker's brand personality
framework dimensions for red bull is excitement whereas for lucozade it is sincerity.
Price Analysis
Price analysis lays concern over deciding the price of a particular product in that target
market. It is very essential for an organisation to decide a price that is logical and rational. An
organisation needs to put in a lot of effort while deciding the price of its products and services as
it will showcase the value of the product and service. Also the price should be set keeping in
mind the willingness of the target consumers to pay the same. In order to set the right price, the
company also needs to assess the price offered by its competitors so that it can capitalise on the
same and gain a competitive edge over the competitors (Tontuș, 2018). Redbull has levied high

prices on its products as the company provides best quality products and services to its
consumers. One specific reason why Redbull charges high prices is because the company is
extremely quality conscious and targets the consumers with high income and salaries (Bonaparte,
2019). On the other hand. Lucozade charges relatively low prices in comparison to Redbull as
the company's target consumers are scattered according to demographics. The company mainly
caters to low- middle income individuals, teenagers etc. This is why company charges low prices
in order to capture its target consumers of its products and services and capitalise on the same in
order to survive and give a tough competition to its competitors in the market environment
(Woodand Jobber,2016).
Place Analysis
It refers to the movement of product from the place of production to the place of
consumption. It is a journey involving distribution of goods and services from its producer to its
ultimate consumer. The channel of distribution is scattered as energy drinks and on counters
including night clubs, bars, health clubs, grocery stores and so on. The stores where the brand is
sold are both the retail as well wholesale market, which makes it easy to reach. This journey
may involve various intermediaries which act as a catalyst in the movement of the product/
services to its consumer. Red bull has its business scattered all around the world. The company is
currently operating in more than 171 countries across the globe. The products sold are mass
marketed as they are very popular among the buyers as they are catering the needs in form of
energy drinks used for health concerns or the drinks available in bars and clubs which can be
substituted in place of alcohol. The products offered by Redbull are easily accessible in grocery

shops, supermarkets, clubs etc. The company's offering can be also purchased online through
various E- commerce sites. On the other hand, Lucozade is available in very few countries in
comparison to Red bull. The products and services offered by Lucozade are available in
supermarkets and stores of the countries it operates in. The products offered by Lucozade are
also available online. Since the company is not scattered globally, this is one reason why the
same is not recognized or popularised among at the global level.
Promotion Analysis
Promotion analysis refers to the analysis of promotional strategies adopted by the
organisation to attract the target consumers of the company and create brand awareness among
the same. It helps an organisation to create hype about the products and services offered by the
company and increase the demand for the same in the market environment. Red bull is one
company that focuses on aggressive promotional strategies. The company invests a huge amount
every year in promoting and advertising its products and services among the consumers in the
target market. The company capitalises on various Above the line and Below the line advertising
techniques in order to capture larger market share. Red Bull also promotes its products and
services by providing sponsorship to various programs such as Sports events, youth events,
charity events etc. The company also capitalises on various popular influencers by including
them in its advertisement campaigns (Tuten, 2019). It can be said that Redbull is leaving no
stone unturned in order to market its products and services within the target consumers. On the
other hand, Lucozade's promotional strategy involves print and digital media as well as
electronic media to create awareness about the products and services offered by the company
among the target market. Like Redbull, Lucozade also capitalises on influential celebrities by
including them TV commercials in order to attract more and more consumers. It also sponsors
various events in order to make a positive impact in the society and leverage on the same
(Shulgina, 2017). The brand values focus on the ethics and betterment of people, ideas and
culture which is an essential element for a consumption brand to sustain in the market. This
results in accomplishing their mission and vision statements. Lucozade also promotes its
products and services on social media in order to reach wider audience and generate a larger
customer base in the market environment. The brands are establishing themselves in providing
items in all qualities whether affordable rates, providing drinks which can cater the needs of high
class people. The target market is focused who are 18- 30 years age group, under which is

college going as well as business class people comes, who are more attracted to energy drinks or
low calorie drink to freshen them up. Being a new and innovative product brand promotes it very
heavily either by sponsoring, advertising on print media or entertainment media.
It can be evaluated from the above analysis that Redbull is able to obtain higher market
share in the market environment in comparison to Lucozade. The reason for the same is that, the
company Redbull has its business operations scattered widely across the world and it helps the
company to attract and capture more consumers in comparison to Lucozade. Nowadays, society
is really concerned about the harmful effects of plastic in the environment and many
organisations are working towards eliminating plastic from the production process of their
products and services (Eastman, 2017). The brands communicates with their customers through
the social media which includes resolving their issues or generating new ideas to increase their
brand value. Although the brands are recognizable to buyers but to create a more enhancing
impact they are taking measures which are beneficial for both the buyers and consumers. The
fact that Redbull is promoting environment friendly products by providing recycable cans to its
consumers has proved to be an advantage for the company. The Redbull loves have appreciated
this a lot and this has also helped the company to increase its brand loyalty. On the other hand.
Lucozade's products can be reused but they cannot be considered bio degradable. This must have
impacted the opinions of the consumers towards the products and services offered by the
company.
CONCLUSION AND RECOMMENDATION
It can be concluded that although both the companies i.e. Redbull and Lucozade are
trying to deliver their best products and services in the market in order to win the trust of the
consumers and increase their customer loyalty. However, it can be said that right now, Redbull is
dominating the energy drinks industry but in order to maintain its position, it needs to reduce or
eliminate the amount of caffeine and try to substitute it with some other ingredient. This will also
help the company to capture health enthusiasts which were resisting the brand due to the caffeine
percentage in the brand's products and services. The four P's are an essential element in
marketing strategy and are applied on the basis of the market needs and the trends going in the
market. As it has reach in global market, the mix applied plays an essential role to increase the
market share. The way of applying mix in this way is to help the organisation in earning profits
and the buyers to purchase the pocket friendly product. Redbull has been most successful in

application of these four P's, which is a result that Redbull is more popular in international
markets. On the other hand, Lucozade needs to implement certain changes in its products
packaging in order to please its target consumers and try to capture emerging and fresh markets
by scattering its operations..

REFERENCES
Books and Journal
Bonaparte, Y.L., 2019. Sustainable outcomes of an experiential learning project in a principles of
marketing course.Journal of Global Scholars of Marketing Science,29(1), pp.7-14.
Eastman, M.L., 2017. The Brand Project: Reinvention of a Principles of Marketing Course for
the Digital Age.Journal of Higher Education Theory and Practice,17(6).
Palmatier, R.W. and Crecelius, A.T., 2019. The “first principles” of marketing strategy.Ams
Review,9(1-2), pp.5-26.
Porral, C.C. and Stanton, J.L., 2017.Principles of marketing. ESIC Editorial.
Shulgina, L., 2017. Principles of marketing management of a modern enterprise.World Scientific
News, (72), pp.628-636.
Tontuș, H.Ö., 2018. Promotion of health tourism and evaluation of the principles of marketing of
health services.Journal of Multidisciplinary Academic Tourism,3(1), pp.67-88.
Tuten, T.L., 2019.Principles of Marketing for a Digital Age. SAGE Publications Limited.
Wood, M.B. and Jobber, L., 2016.The marketing plan handbook. Pearson.