MG412 Principles of Marketing: Lucozade Energy vs. Red Bull 4Ps

This report provides a comparative analysis of the marketing mix strategies employed by Lucozade Energy and Red Bull. It examines their target markets, product offerings, pricing strategies, distribution channels, and promotional activities. The report highlights how each brand positions itself in the market and caters to its target audience. Lucozade focuses on sports enthusiasts, while Red Bull targets young adults and those seeking an energy boost. Both brands utilize unique distribution strategies, with Lucozade operating in fewer countries than Red Bull. The report concludes that while both brands operate in the energy drink market, they have distinct marketing approaches to reach their respective customer base. Desklib offers a wide range of study tools and solved assignments to aid students in their academic endeavors.

Principles of Marketing

Executive Summary
The report will cover analysis about comparative analysis of two brands between Lucozade
energy and Red bull. It also covers discussion about marketing mix parameters which include
product, place , price, promotion and target market as well.

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Target Market..............................................................................................................................3
Product/Brand.............................................................................................................................4
Price.............................................................................................................................................4
Place(Distribution)......................................................................................................................5
Promotion ...................................................................................................................................6
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Marketing mix refers to combination of factors that can be controlled by an organisation
to influence consumers for purchasing products. Marketing mix basically helps in terms of
understanding products and services that can be offered to the customers. In the present report,
two brands is taken into consideration which are Lucozade and Red bull(Baba and Nastase-
Anysz., 2020). Lucozade is a sport and energy soft drink which was first introduced in United
Kingdom in the year of 1927(About us Lucozade)When people were ill, it was basically created
for purpose of serving as a energy drink to people. Another brand which is Red bull is also an
energy drink and it was created by an Austrian company in the year of 1987(Red bull)The
present report will cover discussion about comparative analysis between two brands with support
of marketing i.e. Lucozade and Red bull.
MAIN BODY
Target Market
A target market is a group of customers with shared demographics who have been
identified as the most likely buyers of a company's products or services. For purpose of
comparison of brands STP is taken into consideration in terms of target market. Lucozade has
segmented its customers which is specific to sportswomen and sportsmen in order to sell their
products. Whereas Red bull has segmented the market on the basis of teenagers, college students
and young adults. Lucozade has targeted those people who are young men aged between
eighteen to thirty years whereas Red bull has targeted young urban males who lives on the edge
and also aspire to do so(Chattaraj and et.al., 2018). The people who are involved in extreme
sports and recreational activities are the main target of Red bull brand.
In case of positioning parameter, Red bull has position itself as a unique and innovative
product which targets the consumers who shares the same state of mind. Whereas Lucozade has
position itself on the basis of price premium who provides particular benefits which is delicious,
refreshing and can also replace the lost energy as well.

Product/Brand
A product is something which describes business who want to sell to its customers which
satisfies needs and requirements of consumers. The Levitt's model is basically based on the idea
of a product as stratification of level. This model basically revolves around four components of
organisational change and it includes structure, task, people and technology.
Lucozade provides various range of products which include orange, apple blast, pink
lemonade, Caribbean crush, passion fruit whereas Red bull also provides various kinds of
products. It include red bull energy drink, red bull yellow edition energy drink, red bull sugar
free energy drink and red bull energy drink(Fan and et.al., 2015). Lucozade has packed their
products in those bottles which are entirely made from recycled plastic by the end of 2021 year
with its investment of £6m in its Gloucestershire site. Whereas Red bull is basically filled with
hundred percent recyclable aluminium cans. In order to maintain the hygiene standards minimum
amount of plastic is required in terms of storage and transportation. In terms of functional level,
both are same in terms of functional parameter. Lucozade energy is that which is fast and
effective provider of energy to the body and brain whereas Red bull help in terms of improving
the energy and also boost physical and mental performance.
In terms of brand value of Lucozade, it is a dynamic and bold brand with an independent
spirit. They also have “can do” attitude and a “never say die” approach to life. Whereas Red bull
portray themselves in a manner with a statement as “Red bull gives you wings”. It signifies that
it boost physical and cognitive performance(Farquhar., 2017). With respect to brand personality
of Red bull, it has an exciting, courageous hyper-energetic and outgoing personality. Whereas
Lucozade is a bold and dynamic personality. In this way, both brands portray themselves at
international level with their innovative products.
Price
There are basically three types of pricing strategy which include cost plus pricing, competitive
pricing and value based pricing.
Cost plus pricing: This is a kind of strategy which determines the cost of product and
also add some percentage on to that price in order to determine selling price of customers.
Competitive pricing: This is a kind of strategy which aims to set price of products at
same or comparative price of their competitor product within the market.

Value-based pricing: This is a kind of strategy which refers to pricing of products and
services that is based on the value of brand which feels correct for the market rather than its
historical price.
Lucozade has followed competitive pricing strategy because they have to stand strongly
in this international market. Lucozade is basically priced in competitive manner than the market
average and it supports in terms of building the image with higher level of quality in the market.
This kind of pricing strategy act as disadvantage in the period of global recession where many
consumers go for cheaper products in response to diminishing purchasing power(Fejza., 2019).
Whereas Red bull has followed value based pricing strategy because it has quality in their
product due to which consumers want to purchase it again and again. Red bull has position itself
in such a manner where premium pricing brand with ten percent more price than their most
expensive competitor. Consumers are also ready to pay this premium price because of its quality
products and products benefits. As it is the world's best selling drink on the world wide level.
Place(Distribution)
It basically refers to the decision made by the company for identifying distribution
channels through which it will deliver its products and services to their customers into efficient
manner. The brand offers their products through different kinds of modes it includes online and
offline store in order to attract large number of customers at large scale(Korzhenko., 2016).
Online platforms can be Amazon and other platforms as well which will help in terms of
distributing their products at large scale. In this way, distribution plays a very important
parameter on international level for reaching out to different kinds of consumers.

Both brands have their own strategy of distribution of products on such a large scale.
Lucozade has offered their products in fifteen countries around the world. They have exported
their products to Asia and Australia country as well. Whereas Red bull sold out its products in
171 countries on the worldwide basis(Mehdi., 2021). Red bull has fourteen distribution centres
in United states. The location of Red bull distribution company includes Las Vegas, Denver,
Pittsburgh, Philadelphia, Miami and Tampa.
Promotion
It refers to marketing communication process which enables a company to promote its
products and services in order to attract large number of customers. With respect to promotion of
Red bull products they used their famous slogan “Red Bull gives you wings” in their entire
online and offline campaigns which delivers through television advertisement, outdoor
advertising, print media and digital channels as well. Whereas Lucozade has promoted their
products through multimedia marketing campaign and their aim is to reach out to 97%
population by the end of 2021 year. The campaign will reach to their consumers through TV,
social media, online video, e commerce and mobile advertising. Red bull uses different methods
of communication which include print and media advertisement into newspapers, TV channels
and magazines.
Illustration : Red Bull Distribution
Source : Merchandiser(Part Time)

Whereas Lucozade reach out to its audience through their major focus on online videos,
mobile advertising etc. Red bull has position itself in the minds of customers as unique and
innovative product into the market place with similar state of mind(Rahmani and et.al., 2016).
Red bull also gives luxurious feel to their customers while having this particular drink. They are
also dynamic, risk taker and can handle stress, in this way they position themselves in the minds
of customers. Whereas Lucozade has position itself in a very affordable and healthy drink in
minds of their customers. In this way, Lucozade has position itself in minds of their audiences.
This is the way through which both brands have promoted themselves into positive manner.
CONCLUSION
The above stated report concludes that marketing mix plays a very important role in this
business world. It has been concluded that there is a comparative analysis between both brands.
Both brands have their unique strategy in order to meet out requirements and needs of their
customers. Marketing mix basically includes certain factors which are product, place, price,
promotion and target market. It has been determined that both provide healthy drinks to their
customers in order to boost up health and lives of their customers. In order to distribute their
products to different places they have used different distribution channels. The pricing strategy
which has been adopted by both brands depend on their value of product and also their
competitive nature as well. In terms of promoting their products they have used different
methods of communication in order to reach out to large number of customers.

REFERENCES
Books and Journals
Baba, A. and Nastase-Anysz, R., 2020. Public sector intervention in a period of crisis: study
based on applied relationship marketing principles.
Chattaraj and et.al., 2018. Buying behaviour of herbal cosmetics by women consumers: An
exploratory study in Kolkata. Indian Journal of Marketing, 48(5), pp.36-49.
Fan and et.al., 2015. Demystifying big data analytics for business intelligence through the lens of
marketing mix. Big Data Research, 2(1), pp.28-32.
Farquhar, J., 2017. Marketing financial services. Macmillan Education UK.
Fejza, V., 2019. Marketing analysis in the water production sector in Kosovo.
Korzhenko, K. A., 2016. Peculiarities of Developing the Complex of Marketing
Communications in Tourism Organizations. Бізнес Інформ, (2), pp.383-388.
Mehdi, S., 2021. An Adaptive Approach to Modern Marketing Styles: Viral-Marketing VS
Neuro-Marketing. Design Engineering, pp.390-398.
Rahmani and et.al., 2016. Assessment the effect of the marketing mix on increase the imported
car sales (Case Study: Toyota Company). International Journal of Humanities and
Cultural Studies (IJHCS) ISSN 2356-5926, 1(1).
Online
About us Lucozade,2021[Online]Available
through:<https://www.suntory.com/brands/lucozade/>
Red bull,2021[Online]Available through:<https://fortune.com/company/red-bull/>