MG412 Coursework: Evaluating the 4Ps of Lucozade and Red Bull

This report provides a comparative analysis of the marketing strategies employed by Lucozade Energy and Red Bull, two prominent brands in the energy drink market. The report meticulously examines the application of the 4Ps of the marketing mix – Product, Price, Place, and Promotion – for each brand. It begins with an executive summary outlining the report's objectives and structure. The introduction establishes the significance of the marketing mix in shaping a company's market position. The methodology section details the secondary and observational research methods used. The discussion section analyzes the target markets, product offerings, pricing strategies, distribution channels, and promotional activities of both Lucozade and Red Bull. The report highlights the differences in their approaches, such as Lucozade's focus on sports enthusiasts and Red Bull's broader appeal to active individuals. The analysis covers product variations, pricing models, distribution networks, and promotional campaigns, including advertising and sponsorship strategies. The report concludes by summarizing the effectiveness of each brand's marketing mix and offering insights into their competitive positioning within the energy drink market. The report also includes references to support the findings.

Running head: PRINCIPLES OF MARKETING
Principles of Marketing
Name of the Student
Name of the University
Author Note

1PRINCIPLES OF MARKETING
Executive Summary
The marketing mix is one of the important tools for any company to set up its strategy and
creates its position in the market. The report will demonstrate an understanding of the needs
of proper marketing mix with the help of 4 P’s that is Product, Price. Place and Promotion.
This report will analyze and evaluate the target market and marketing mix of two different
brands under the beverage industry. Brand A is Lucozade and brand B is Red Bull. Both the
products have been analyzed and evaluated as per their target market and their marketing
strategy used to compete in this market.

2PRINCIPLES OF MARKETING
Table of Contents
Introduction................................................................................................................................3
Aim of the Research...............................................................................................................3
Methodology..........................................................................................................................3
Discussion..................................................................................................................................3
Target Market.........................................................................................................................3
4 P’s of Marketing Mix..........................................................................................................5
Product/Brand....................................................................................................................5
Price....................................................................................................................................5
Place...................................................................................................................................6
Promotion...........................................................................................................................6
Outcomes................................................................................................................................7
Conclusion..................................................................................................................................8
References..................................................................................................................................9

3PRINCIPLES OF MARKETING
Introduction
In the competitive business era, the company needs to have appropriate knowledge
over its brand or product and the market prior to being introduced in the market. The
marketing mix is one of the essential tools that can help the company to create an accurate
marketing strategy and its implementation by effective tactics (Wu and Li 2018). While
evaluating all roles four P’s that is Product, Promotion, Price, and Place is the crucial part of
the entire approach of marketing. The report will analyze and evaluate the marketing strategy
of the chosen companies.
Aim of the Research
The aim of the research is to analyze and evaluate the effectiveness of the marketing
mix for the brand Lucozade Energy and Red Bull. The report will further demonstrate the
knowledge of the targeted market of both the companies.
Methodology
The methods used for the research is based only on a secondary and observational
study. The data is collected from the websites, articles, and journals for preparing this report.
Discussion
Lucozade is a popular and successful company within the industry of sports and
energy drinks. It first entered the market in the year 1927. It continues to give competition to
other companies more effectively after re-launching its energy to sports drinks in the 90s
(Clapp, Morgan and Fairchild 2019). Red Bull is one of its competitors and a product of and
sells by an Australian company Red Bull GmbH, which is created in the year 1987.
Target Market
Lucozade is sold over 25 countries that are within or outside the country. It uses a
Sportsperson to sell their product. Earlier, the company started with energy drink but the 90s

4PRINCIPLES OF MARKETING
have brought some change in its product segmentation by launching it with a sports drink
(Gurbuz 2018). Lucozade yields several beverages such as Lucozade Energy, Lucozade Elite,
Lucozade Lite, and Lucozade Sport. Lucozade sport is sold in wide-ranging shops that are
newsagents to supermarkets. It is a popular product, which is not hard enough to sell off
through most of the shops that sell drinks. The company offers to sell their product through
the online website with free delivery if the purchaser wants to buy it in bulk.
Lucozade used market segmentation to distribute the targeted customers into young ladies,
high-earning males and sports fanatics. Lucozade Sport focused on replacing salts to
rehydrate the individual while playing the game (Lancaster and Massingham 2017). The
company targets such sports enthusiasts through publicizing it via sportspersons and on
sports platforms. It is sold at a parallel price to competitors and therefore does not have
competition for price.
Red Bull goes with the mono-segment type of positioning. The company focuses on
the demand for a single customer segment that is represented by busy persons who are extra
active in their lives and those who have a fascination for sports. Red Bull targets its
customers' segments with a large variety of products such as Red Bull Energy Drink, Red
Bull Sugar-free or Red Bull Zero Calories, Red Bull Editions, and Red Bull Simply Cola
(Mahroum 2016). The geographic segmentation is domestic and international for all its
products. The demographic segmentation of the product is targeted to the age group of 16 to
40 and above to both males and females to high-level income customers. Psychographic
segmentation, in terms of Social class, is targeted to Middle and Upper classes of all the age
groups (Farris et al. 2016). Red Bull showed to outshine the worldwide marketing strategy at
competitive pricing and effective promotions.

5PRINCIPLES OF MARKETING
4 P’s of Marketing Mix
Product/Brand
The Product of the marketing mix refers to an item that tends to satisfy the needs and
wants of the customers.
Lucozade is a glucose-carbonated drink that quickly assimilates into the bloodstream
and it can be digested easily. The products of Lucozade include sports and energy drinks also
glucose tablets and water bottles (Akgun et al. 2017). Lucozade energy provides a glucose
drink for physically active people. Lucozade Sport introduced to meet the needs of gym-
goers, sportspersons, and athletes.
Red Bull has kept its product variation very simple unlike from the other companies.
It has included different flavors such as Cranberry, lime, blueberry, and tropical fruits into its
drinks. The company understands the increasing need for the sugar-free drink of a large
number of people and comes with Red-Bull Sugar-Free (Samson and Sheela 2016). The
deteriorating demand for carbonated drinks and the rising swing to the energy drinks has
accredited to the success of the Red Bull. Red Bull energy drink comprises caffeine, Vitamins
B, sucrose and glucose that is mainly needed by workaholics, sports persons, or even youth.
Price
Price refers to the cost or the amount that the customer pays for a particular product.
The prices of Lucozade products differ depending on the seller and so on but a bottle
of Lucozade differs between £1.50 by £2.50. Water Bottles' price is about £10. Being in the
market for long years, Lucozade gas gained much experience about reducing cost, and that is
why it is cheaper from the Red Bull (Barry, Leahy and Fenton 2019). Where Lucozade 100
ml bottle cost £0.78 to £1.50, Red Bull will cost £1.35 by £2.05.

6PRINCIPLES OF MARKETING
People generally prefer to buy the Red Bull product in bulk as it costs them cheaper
rather than buying a single can. It is expensive from other energy drinks. Red Bull is the
market leader for such energy drinks and hence its cost charged as a Premium Pricing
Strategy from the customers due to its high quality and massive brand awareness. As its
targeted customers are of high income earning people so despite being costlier, its consumers
do not hesitate to buy such a product. Thus, it has immense brand loyalty from its customers.
Place
Place of the marketing mix denotes to considering convenience or providing access to
the customers to have that product.
Lucozade used to sell its products in all major and minor stores, as well as online.
Place is considered to be an significant part of marketing mix as it is very dynamic and fast
moving area of marketing. Lucozade is available in more than 15 countries across the world,
which has managed to sell its products also through the events.
Red Bull product is used to sell in more than 171 countries across the world. The
company has managed successfully to sell more than 61 billion cans by the year 2018
throughout the world (Kwon, Lee and Kim 2018). The product is easily available in small
and big grocery stores of the rural and urban areas, supermarkets, nightclubs, and this has
resulted to make it successful with its brand name. Red Bull is normally kept in Red Bull
special fridges appealing consumers to purchase an energy drink on the time when they visit
grocery or shopping or even to a bar. Red Bull is also obtainable online either in bulk packets
or in single so the customers get both the choices as per their purchasing power.
Promotion
Promotion refers to the tool of marketing communication that may consist of
advertising, public relations, direct marketing and sales promotion.

7PRINCIPLES OF MARKETING
Lucozade uses billboard advertising as well as TV advertisements to promote their
product. The company is very good at utilizing advertising and sponsorship as technique for
promoting its products. The advertisement campaign tends to do ads on TV that always keep
pace with its changing target market (Mullin 2018). The company targets sports enthusiasts
through advertising it via athletes and on sports platforms or events. The company changes its
people and strategy with the changing needs and demands of the consumers. A time when
there was an ultimate craze for the IPod or IPhone, the company offers consumers to win an
IPhone every single hour. Everyone had a chance as long as he/she purchases a bottle of
Lucozade Energy.
Red Bull invests millions of dollars every year on promoting its products to create an
image on the minds of the consumers as their top priority. The company uses mix of Above
the line (television, internet etc.), Below the Line (discounts, coupons etc.) and Digital
channels for creating consciousness and promoting all its products. Storytelling is an art that
Red Bull Company has positively touched. It uses it very well to connect with its consumers
(Hardy 2018). Red Bull is an excellent example of content marketing that has helped the
brand to attain its heights of success and build the base of loyal clients. They also approve
several sports athletes and celebrities for id product’s promotion.
Outcomes
The present market is very competitive and every company has number of its
customers. Therefore, it is necessary to go along with the time and the needs of the
consumers. If the company does not tends to think for innovation, they might be left back
against so many companies. Lucozade is such a company that understands the changing tastes
and preferences of its customers and believes in development. The company has first
launched the energy drink in the market and it has good reputation. That is why it has its
presence in several countries with a large number of customers. The cost and promotion

8PRINCIPLES OF MARKETING
strategy of the companies is so well that helps them to create stability for themselves along
with its competitors.
However, the company has the main competitor present in the market that is Red Bull.
Red Bull has its presence over 171 countries and a large number of customer base that results
with a large volume of sell of its products. Red Bull is so costlier as compare to Lucozade
and other rivals but still it is amongst the top priority of the consumers due to its quality and
brand image.
Conclusion
Lucozade has a great team working over to how to develop energy of the people. As a
result, it is a popular and successful company within the industry of sports and energy drinks.
Its substitute product is Red Bull, which gives an immense competition to Lucozade in its
product segment. Lucozade keeps a brilliant cost cutting strategy that tends to sell its
products very quickly and adopted by number of people whether the product is newly
launched or an old flavor. Red Bull uses very creative marketing strategy for its promotion
and never co promises with its quality of the product. Therefore, it is having a large number
of loyal customers who prefers its product rather than being costlier as compare to others.
Lucozade as boosting energy drink market expanded its share within the entire
beverage. Since, the company is dominant players in such product what it should do now is to
try to remain the old customers as well as to attract the new customers towards its products.

9PRINCIPLES OF MARKETING
References
Akgun, A.E., Keskin, H., Ayar, H. and Etlioglu, T., 2017. Why companies go positive
marketing innovations: a new theoretical prototype for 4ps of innovation. Journal of Business
Economics and Finance, 6(2), pp.70-77.
Clapp, O., Morgan, M.Z. and Fairchild, R.M., 2019. The top 5 Selling UK Energy Drinks
implications for dental and general health.
Farris, P., Shames, E., Johnson, R.R. and Mitchell, J., 2016. Red Bull (a). Red Bull (a)(April
14, 2016). Darden Case No. UVA-M-0663.
Gürbüz, E., 2018. Theory of New Product Development and Its Applications. Marketing,
pp.57-75.
Hardy, J., 2018. Branded content: Media and marketing integration. In The Advertising
Handbook (pp. 102-117). Routledge.
Kwon, W., Lee, H.W. and Kim, Y., 2018. Global marketing of Formula One: Local
variations and geocentric marketing mix. International Journal of Applied Sports
Sciences, 30(2).
Lancaster, G. and Massingham, L., 2017. Customer care and relationship marketing.
In Essentials of Marketing Management (pp. 260-278). Routledge.
Mahroum, S., 2016. Red Bull in Fuschl am See: A Special Place for Special People. In Black
Swan Start-ups (pp. 103-117). Palgrave Macmillan, London.
Samson, M.S. and Sheela, M.V.P., 2016. Global markets and the evolving marketing
4p’s. Responsible marketing for sustainable business, 100.

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Wu, Y.L. and Li, E.Y., 2018. Marketing mix, customer value, and customer loyalty in social
commerce. Internet Research.
Mullin, R., 2018. Promotional marketing. Routledge.
Barry, H., Leahy, R. and Fenton, P., 2019. A Strategic Approach to Amplifying an
Experiential Event using Social Currency to Reach a Mass Audience.