COVER PAGE

GENOVEVA-IULIANA ONA

BNU: 20011316

GROUP H1

MG412-PRINCIPLES OF MARKETING

CW1-THE 4P/MARKETING MIX

TUTOR-SIAN JACKSON

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 Table of Contents

1.Introduction………………………………………………………………………………..…..3

2.Target Market……………………………………………………………………………….....4

3.Marketing Mix………………………………………………………………………………….5

4.Product………………………………………………………………………………….…...…6

5.Price…………………………………………………………………………………………….8

6.Place……………………………………………………………………………………………9

7.Promotion………………………………………………………………………………….…..9

8.Conclusion ………………………..…………………………………………………………10

9.References……………………………………………………………………………..…….11

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1.Introduction

The act of marketing a product is of utmost importance as it serves to expose it to

potential buyers, thereby enhancing the probability of a purchase being made (Solimun
and Fernandes, 2018). The objective of this study is to conduct a comparative analysis
of the marketing strategies employed by Lucozade Energy and Red Bull Energetic Drink
in their respective markets.

The brand name Glucozade was first introduced in the United Kingdom in 1927 for the
sale of Lucozade. In 2013, the Japanese corporation Suntory commenced the
production and commercialization of the product. Initially, the product was introduced as
an energy drink for individuals with medical conditions, but later underwent a
reformulation to cater to the needs of athletes as a sports drink. Lucozade Energy's
operations are confined to the United Kingdom, while Red Bull Energy Drink has global
aspirations. Red Bull GmbH, an Austrian company established in 1987, is responsible
for managing sales. The adoption of U.K. was not realized until 1993, which was six
years after its initial release. In contrast to Lucozade, Red Bull is a multinational
enterprise that operates in more than one hundred countries worldwide.

Products such as Boost, Monster, Rockstar, Relentless, Emerge, Mountain Dew Energy,
and others present significant competition to the brands. In contrast, Lucozade and Red
Bull energy drinks have demonstrated significant commercial success and market
dominance within their respective industries, as evidenced by the 2018-2019 ranking of
energy drink brands by user count (2020). It is hypothesized that as individuals become
more health-conscious and physically fit, they are likely to refrain from consuming
sugary beverages. As per the UK energy drink market growth, projections, and trends
(2020 - 2025), it is anticipated that the expansion of the energy drink market will occur
at a slower pace than previously estimated.

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2.Target Market

2.1 Lucozade- Lucozade is an energy drink that primarily targets a youthful

demographic and has established itself as a contender in the sports beverage industry.
In order to appeal to a diverse range of clientele, the company has maintained a pricing
strategy that is set at a minimum level. The company's products undergo a rigorous
pharmaceutical preparation process following an extensive research phase. Additionally,
the company's effective advertising strategies have contributed to its current status as
the leading market player in the UK's energy drinks industry, surpassing key rival Red
Bull and other major competitors such as Coca-Cola.

Fig 1: Lucozade, 2012 (online source)

2.2 Red Bull - Red Bull is a beverage that is promoted towards individuals who engage
in physical activity and fall within the age range of 15 to 30 years old. The enterprise
positions itself as a high-end commodity and has sustained elevated pricing throughout
its duration. Consequently, the income bracket of the clientele is situated within the

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upper-middle stratum. The company's ability to offer high-quality products has resulted
in a substantial following of customers from diverse income brackets who are willing to
pay a premium for the merchandise. The company acknowledges that it is in direct
competition with its rival, Lucozade, for the patronage of the same clientele.
Consequently, it employs a promotional strategy that aims to avoid encroaching on the
market share of its competitor and instead concentrates on enticing new customers to
the market segment.

Fig. 2: Red Bull, Target Market (online source,2013)

3.Marketing Mix

Sinapuelas, Wang, and Bohlmann (2015) assert that a combination of marketing tools
can aid companies in comprehending their processes and the characteristics of their
customers. This understanding can facilitate the development of marketing strategies
that demonstrate the value of their products to customers. The components mentioned
below are as follows: The four key elements of marketing are Product/Brand, Price,
Place, and Promotion.

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 Fig 3 Marketing Mix (online sources,2020)

4.Product/Brand

Lucozade - A product refers to a physical or intangible item or service that an enterprise

produces with the primary objective of generating revenue through its sale to end-users.
Lucozade Energy offers a carbonated beverage that is infused with glucose. The
objective of this product was to furnish individuals who participate in arduous physical
exertion with a requisite surge of energy. The company offers a variety of nine flavors
for its beverage, including Original, Orange, Apple Blast, Pink Lemonade, Wild Cherry,
Brazilian Mango & Mandarin, Caribbean Crush, Watermelon & Strawberry Cooler and
Citrus Chill. In addition to Lucozade Energy, which is available in bottles, cans, and
tablets, the company produces a range of beverages such as Lucozade Sports,
Lucozade Revive, and Lucozade Zero.

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 Fig 4. Lucozade drink, (online source), 2022.

Red Bull - The product range is relatively constrained, encompassing items such as the
Red Bull energy beverage in blue and red (watermelon flavor) packaging, Red Bull zero,
Red Bull tropical edition, and Red Bull Coconut edition, among other alternatives. In
comparison to its competitors such as Lucozade, the beverages produced by the
company contained a higher amount of both sugar and caffeine in comparison.
Consequently, the company has introduced sugar-free options for its products.

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 Fig 5: Red Bull Product, (online source, 2013).

5.Price

Lucozade – "Price" refers to a firm's goods or services' cost. Thus, market research is
essential. The marketing mix examines a company's pricing strategies, which affect its
profitability. Lucozade Energy charges differently. A case of 24 cans with all three kinds
for £13.99 is an option. In 2020, Lucozade energy shop sources said a 24-pack of 380-
ml bottles costs £15.99 and a 24-pack of tablets costs £18.00. Both prices are British
pounds. Supermarket pricing vary.

Red Bull - Red Bull utilizes unique pricing strategies in contrast to those employed by
Lucozade Energy due to its global presence as a brand. As an illustration, a set of
twenty-four 330 ml Lucozade Energy Can Orange can be procured from Amazon.com
at a cost of £17.99, whereas a set of twenty-four 355 ml Red Bull can be obtained at a
price of approximately £34.49 from the same online retailer. The prices mentioned are
subject to alteration. Consequently, it can be argued that the premium pricing strategy
adopted by Red Bull presents an opportunity for its rivals to lure customers away from
the brand. According to Koo, Kim, and Kim (2016), the extensive name recognition,

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high quality, wide availability, and loyal customer base of the product justifies its high
pricing.

6.Place

Lucozade - This element encompasses distribution centers or locations where a

company's products and services can be obtained (Kotler, 2015). Both Lucozade and
Red Bull have multiple channels of distribution. Lucozade sells its goods via both local
merchants, such as those found in schools, gyms, and sports centers, as well as
through traditional and online retail stores, such as Tesco, ASDA, Amazon, and other
similar businesses. Additionally, it offers sales of its wares via its website. However,
currently, the Lucozade Website is only able to ship orders to locations in the United
Kingdom and Northern Ireland.

Red Bull – Similar to Lucozade, the Red Bull corporation employs a comprehensive
marketing strategy that encompasses all fundamental principles and endeavors to
achieve widespread distribution of its products. Consequently, Red Bull is widely
available at various events, as well as in numerous supermarkets, nightclubs, and
grocery stores. Moreover, it can be accessed without charge through various online
distribution channels, including but not limited to Amazon, Tesco, and comparable
vendors. Although these enterprises have distinct pricing plans, they have effectively
optimized their distribution channels and are generating substantial sales.

7. Promotion

Lucozade - The Lucozade enterprise recognizes the significance of advertising and

promotional activities in sustaining its market dominance, given the intense competition
within its industry. The company underwent a strategic repositioning from being
perceived as a pharmaceutical beverage to a sports and energy drink in order to

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expand its consumer demographic. The company employs a variety of promotional
strategies, including both traditional and digital methods. These methods encompass
advertising on television and billboards, public relations, direct marketing, sales
promotion, social media promotions, email marketing, and more. In contrast to Red
Bull's promotional strategies, Lucozade's methods of engaging and enticing customers
towards its products are comparatively lacking in innovation and creativity.

Red Bull – Baker and Hart (2016) remarked that the company's creative staff has
developed innovative marketing techniques. Like Lucozade, it uses traditional and
internet marketing. Unlike Lucozade, this firm focuses on innovative and creative
advertising campaigns. Celebrity endorsements, sports event giveaways, sponsorships,
and campaigns boost brand awareness. The firm promotes its goods using innovative
taglines like "give you wings" and narrative in its TV ads. Red Bull is sometimes stored
in special freezers to entice consumers. Both companies market energy drinks.
However, high sugar levels have reduced the number of health-conscious, calorie-
conscious customers.

8. Conclusion

Based on the report, it can be inferred that both Lucozade and Red Bull have effectively
implemented all four elements of the marketing mix in a sophisticated manner. They
employ distinct methods to appeal to identical clientele. Both Lucozade and Red Bull
prioritize different strategies for achieving their respective competitive advantages.
Lucozade emphasizes mass availability of their products, while Red Bull prioritizes
superior quality. Red Bull surpasses Lucozade in terms of promotional mix by virtue of
its inventive and imaginative marketing tactics that are crafted on a regular basis.

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The companies exhibit a discernible marketing mix that aligns with the strategic
objectives established by their respective management teams. The comparable market
share of the two companies in the UK indicates that they are closely competing,
demonstrating their effective implementation of marketing strategies. The business
environment is characterized by dynamism, and as such, Lucozade can enhance its
promotional tools in response to the constantly evolving scenarios in various facets of
the company's external environment. In order to surpass a competitor whose primary
advantage lies in their marketing tactics; it is imperative to enhance creativity in one's
own marketing strategies. Alternatively, in order to expand their customer base, Red
Bull may consider diversifying their product line to encompass more affordable options
that appeal to cost-conscious consumers.

9. References

Baker, M.J. and Hart, S. eds., 2016. The marketing books. Routledge.

Koo, K.R., Kim, S.J. and Kim, K.H., 2016. The effects of internal marketing capability on
export marketing strategy, B2B marketing mix and export performance. Journal of
Global Scholars of Marketing Science. 26(1). pp.51-65.

Kotler, P., 2015. Marketing and Sales. Marketing. 1009. p.3V.

Lahtinen, V., Dietrich, T. and Rundle-Thiele, S., 2020. Long live the marketing mix.
Testing the effectiveness of the commercial marketing mix in a social marketing context.
Journal of Social Marketing.

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Sinapuelas, I.C.S., Wang, H.M.D. and Bohlmann, J.D., 2015. The interplay of
innovation, brand, and marketing mix variables in line extensions. Journal of the
Academy of Marketing Science. 43(5). pp.558-573.

Solimun, S. and Fernandes, A.A.R., 2018. The mediation effect of customer satisfaction
in the relationship between service quality, service orientation, and marketing mix
strategy to customer loyalty. Journal of Management Development

Online

Lucozade energy – shop. 2020. [Online]. Available through:

https://www.lucozadeenergy.com/shop/

Ranking of energy drinks brands by number of users from 2018 to 2019. 2020. [Online].
Available through:< https://www.statista.com/statistics/308493/leading-brands-ofenergy-
drinks-excluding-colas-or-mixers-for-alcoholic-drinks-in-the-uk/>

UK energy drink market growth, forecasts and trends (2020 – 2025). 2020. [Online].
Available through:< https://www.mordorintelligence.com/industry-reports/unitedkingdom-
energy-drink-market>

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