Marketing Principles: Comparative Analysis of Lucozade and Red Bull

This report provides a comparative analysis of the marketing principles employed by Lucozade Energy and Red Bull. The analysis encompasses a detailed examination of their product strategies, evaluating aspects such as brand positioning, product levels, and the differentiation of their offerings. The report delves into the pricing strategies, comparing their online and offline pricing models, and assessing the impact of premium versus competitive pricing. Furthermore, the study explores the distribution strategies, contrasting the push and pull strategies and their influence on market reach and customer engagement. The promotional activities of both brands are assessed, highlighting their use of advertising, social media, and event marketing. Finally, the report analyzes the targeted markets of both brands, examining their segmentation, demographics, and positioning to provide a comprehensive understanding of their marketing approaches and strategic differences. The conclusion summarizes the key findings, emphasizing the implications of these strategies on the brands' market performance and economic growth.

Marketing Principles

Executive Summary
The aim of this report is to critically evaluate the difference in implementation of
marketing principles of organization. In which Lucozade Energy and Red Bull are chosen for
evaluating their use of marketing mix strategies.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
MAIN BODY..................................................................................................................................4
Product.........................................................................................................................................4
Price.............................................................................................................................................5
Place.............................................................................................................................................5
Promotion....................................................................................................................................6
Targeted Market...........................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................1

INTRODUCTION
Principles of marketing are the strategic development tool used by organizations for developing
their marketing strategies for increasing their customer count. Lucozade Energy and Red Bull are
chosen for the analysis in this report in which both are energy drink provides. Analysis of their
targeted market is done in this report with that evaluation of their pricing strategy is also done in
this report. Analysis of their distribution strategy is also done in this report.
MAIN BODY
Product-
Levitt’s model of brand consist of 5 layers which a product has to achieve in order to
become successful in market, these level of makes a considerable impact on the functional and
emotional level of brand. The levels comprises of several characteristics which are required from
a product in order to become successful. Basic level means requirements then arise expected
level when product is having more properties than the requirement. After fulfilment of expected
level then comes augmented level when the product provides more capabilities then it is
expected. Then arises the final stage i.e. potential level where the product develops a high league
of itself.
Red Bull is a energy drink provider which provide drinking options at an affordable pricing.
Through this it is able to attract wide range of customers (Bonaparte, 2019). Red Bull is a mass
product which is developed in large quantity, therefore it is large customer count, the product is
able surpass basic level and has entered expected level but due to mass production it is not able
to achieve augmented level. It has developed a personality of ruggedness due to its creative
advertisement.
Lucozade is a energy drink is a luxury product which provide limited variety of drinking
options to its customers. Lucozade used premium pricing due to which it increases the product’s
rarity in market, through this it is able to attract higher class of society and is able to surpass
expectancy level and achieve augmented level. Through this Lucozade has developed a
personality of sophisticated, means high price with high rarity.

Price-
Organizations take prices from its customer on the basis of products and services provided
by then to their customers. Lucozade and Red Bull implement different pricing strategies for
their products which they provide to their customers. Following are the online and offline pricing
of Red Bull, Lucozade and Monster.
Red Bull Lucozade Energy Monster
Online £9.00 (Amazon UK,
2020)
£17.99 (Amazon UK,
2020)
£ 15.99 (Amazon UK,
2020)
Offline 1.40 (Sainsbury,
2020)
£1.00 (Sainsbury,
2020)
£1.10 (Sainsbury,
2020)
Through this observation it can be concluded that Lucozade used premium pricing strategy for
pricing its products. In this strategy high prices are established on products such that it will
provide high profit margin to organization. But on the other hand this also limits the
organizational sales and limits organizational customers to a selected segment of society. This
increases product’s rarity and also creates a sense of high quality in front of customers (Lilien,
Rangaswamy and De Bruyn, 2017). Due to which it has managed to acquire high profit margin
from organizational customers and developed a good economic background for organization.
It can be concluded from the tabular representation that Red Bull uses competitive pricing
strategy for pricing its products. Due to which it has managed to attract wide range of customer
toward itself, resulting high organizational sales. But on the other hand this also limits the profit
margin for organization because it is establishing product pricing a little lesser than other market
competition. Therefore in order to acquire high profit company has to enhance its organizational
sales.
Place-
Push and Pull strategy is used by Lucozade and Red Bull Energy drink. This strategy is divided
into two segments, pull strategy and push strategy. Push strategy is the traditional strategy in
which company is having intermediates for selling there products and all the marketing is done
through intermediates only at customer side (Palmatier and Crecelius, 2019). Whereas in case of
pull strategy, company make direct contact with customers such that they are able to generate

requirement for the product. Through this strategy company manages to enhance its sales and
customer loyalty.
Lucozade is luxury product therefore it has limited number of organizational sales through
the selected channel. It uses tradition marketing strategy which is push strategy in which
company is having intermediates for selling and distributing its products, due to which company
is not in direct contact with customers. This limits customer engagement with organization
because of which all the advertisement are done by intermediates only. This Push strategy not
only limits company’s engagement with organization but also increase the chance of brand
switching.
Red Bull is a mass market product which has various distribution channels for maximising its
organizational sales. Red Bull uses pull strategy for distributing its products to a large market. In
case of pull strategy product’s marketing is directly done by organization, such that it is able to
create high demand for the product and then when demand for product are created then product
is made available (Pennano, 2019). Through this pattern organization is able to maintain product
demand and can efficiently provide products by maintaining product availability in market. With
that company also remains in contact with customers because of which it manages to maintain
customer loyalty and reduces the chances of brand switching.
Promotion-
Red Bull uses creative advertisement for showcasing itself as an affordable energy drink
provider in front of its customers. For achieving this company uses creative marketing strategy
such that it manages to maintain customer’s engagement with organization. To maintain
customer engagement Red Bull advertise itself through various communication means such as,
TV ads, newspaper and social media advertisement. To maintain customer engagement Red Bull
organize several events in through which it manages to attract the younger generation by
increasing it’s appearance in small videos through online platforms such as YouTube videos.
Through these creative advertisements red bull manages to enhance customer engagement
through online as well as offline mediums (Porral and Stanton, 2017).
Lucozade Energy drinks are mostly advertised through the means off intermediates because of
which company is not able to deliver its clear image to customer, due to which it is having
limited number of customers. Company uses traditional advertisement means for communicating

with organizational customer such as, TV, newspaper and pallet paper. Lucozade is showcasing
itself as a luxury in front of its customers. Through this traditional advertisement strategy
Lucozade Energy is comparatively lagging in terms of attracting new trendy crowd. Because of
less promotion and premium pricing Lucozade Energy has managed high profit margin with
limited customer crowd (Suryawanshi, 2020). Through this it has achieved high economy profits.
Therefore, in order to promote itself as a premium luxury brand Lucozade Energy has increased
its involvement in social media marketing this will be more effective as well as cost efficient.
Targeted Market-
Red Bull Energy Drink Lucozade Energy Drink
Segmentation Geographic- Urban and rural
citizens are the targeted audience for
this energy drink because of its
affordable pricing.
Demographic- Male and female are
the desired audience.
Behavioural- Loyal organizational
customers and new trendy crowd are
the segmented audience for this
product (Wood and Jobber, 2016).
Geographic- Urban citizens are the
targeted audience for this drink
because of their high income.
Demographic- Product can be used
by male as well as female of higher
class because of their luxury
lifestyle.
Behavioural- Existing as well as
new customer are targeted foe
product.
Targeting Geographic- Meddle and higher
class of citizens of rural and urban
location are the targeted audience for
this product.
Demographic- Male and female of
20 to 40 age group, are the targeted
audience because of high physical
activities.
Behavioural- Sports personal,
explorers and students are the
Geographic- Higher class of society
are the targeted audience for this
product because of their luxury
lifestyle.
Demographic- The targeted age
group for this product is 20 to 45
because of premium pricing and high
physical activities.
Behavioural- Professional sports
personal, organizational employees

specific targeted audience for this
product because of high
and college students are the targeted
audience for this product because of
their high expenditures.
Positioning Position itself as an affordable mid
range product, which provide high
quality.
Position itself as an luxury product
which provide high quality product
at premium pricing.
CONCLUSION
From the above analysis it can be concluded that even though Lucozade and Red Bull are
energy drink provides but due to the variations in their marketing strategies both are having large
difference in their organizational sales. In which the pricing strategy and place of distribution is a
major key role player in deciding the economic growth of organization. Therefore Lucozade
must make changes in its pricing structure, so it can increase its customer count and Red Bull
must increase its pricing strategy, so it can increase its profit margin.

REFERENCES
Books and journals
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.
Lilien, G.L., Rangaswamy, A. and De Bruyn, A., 2017. Principles of Marketing Engineering and
Analytics. DecisionPro.
Palmatier, R.W. and Crecelius, A.T., 2019. The “first principles” of marketing strategy. Ams
Review. 9(1-2). pp.5-26.
Pennano, C., 2019. Curso: Principles of Marketing.
Porral, C.C. and Stanton, J.L., 2017. Principles of marketing. ESIC Editorial.
Suryawanshi, V.B., 2020. Principles of Marketing (202).
Wood, M.B. and Jobber, L., 2016. The marketing plan handbook. Pearson.
Online
Amazon UK, Lucozade Energy orange 380ml, 2020[Online]. Available through:
<https://www.amazon.co.uk/Lucozade-Energy-Citrus-Chill-500ml/dp/B08CB9MXXY/
ref=sr_1_1?
dchild=1&keywords=lucozade+energy+drink+250ml&qid=1603894425&s=grocery&sr
=1-1>
Amazon UK, Monster Energy drink 24x 250 ml cans, 2020 [Online]. Available through:
<https://www.amazon.co.uk/Emerge-Energy-Drink-Multipack-250ml/dp/B07G79Y7B2
/ref=sr_1_2?
dchild=1&keywords=monster+energy+drink+250ml&qid=1603894562&s=grocery&sr
=1-2>
Amazon UK, Red Bull Energy drink 24 pack of 355ml,2020 [Online]. Available through:
<https://www.amazon.co.uk/Red-Bull-Energy-Drink-Pack/dp/B076HR2FT7?th=1>
1

Sainsbury, Lucozade Energy orange 500 ml, 2020 [Online]. Available through:
<https://www.sainsburys.co.uk/gol-ui/product/sports-energy-drinks/lucozade-energy-
orange-500ml?
src=ppc&gclid=Cj0KCQjwreT8BRDTARIsAJLI0KLoUp0B2r_t9NjDogF_DPPAHJzK
3Q3g7YMB85K_qsdQfRkKm7b2DWUaAq0wEALw_wcB&gclsrc=aw.ds>
Sainsbury, Monster energy 500 ml, 2020 [Online]. Available through:
<https://www.sainsburys.co.uk/gol-ui/product/fizzy-drinks-special-offers/monster-
energy-500ml?
src=ppc&gclid=Cj0KCQjwreT8BRDTARIsAJLI0KKJwtWDtE9RIsdzvpJfXVLKSFX
QjH88UzrzwfRTdvscAM64cLdGCmkaAr5dEALw_wcB&gclsrc=aw.ds>
Sainsbury, Red Bull Energy Drink 250 ml, 2020 [Online]. Available through:
<https://www.sainsburys.co.uk/gol-ui/product/sports-energy-drinks/red-bull-energy-
250ml?
src=ppc&gclid=Cj0KCQjwreT8BRDTARIsAJLI0KK1LFyyPx95B2I0kwk4x63lhKm3
BU_MkK7Rq88CEhQADZsxt4iV3f8aArdWEALw_wcB&gclsrc=aw.ds>
2