The Case Company - Lucozade Energy Drink & Red Bull Energy Drink

Introduction Of The Case Company - Lucozade Energy Drink & Red Bull Energy Drink

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The report compares and contrasts the target marketing and the 4 Ps of Lucozade Energy Drink and Red Bull Energy Drink, it highlights how effective the brands are in their application of the 4Ps of the marketing mix and attracting the target audience.

Lucozade energy drink is a British brand of energy drink and soft drink manufacturer which is promoted by the Japanese company name Suntory. It is the UK's biggest energy brand that has grown into a vibrant drink that is loved by millions of consumers (Gurbuz, 2018).

Red bull is an American Brand dealing in energy drinks; company name is Red Bull. With around 38% of the sell share, is the most admired energy drink brand since 2019. The brand was launched in 1987, till the company sold around 100 billion cans worldwide, and 9.8 million in 2021(Farris et. al. 2017).

Comparison of the target market

Lucozade

The British company Lucozade provides its consumers numerous variability’s of soft drinks, the most popular consumed among all drinks is Lucozade Energy. In 2020, it was the popular energy drink brand with around 4.96 million consumers. Since its launch in 1990, the company is on the run to grow and controls over half of the market share. It has been demanded by good marketing strategies and brand loyalty by existing customers, which made the Lucozade popular in the market (Ragsdale, 2016). The company is looking forward to expanding beyond the sports market targeting mostly youthful people between18 to 30 years of age. Company has decided on a target of around 2.2 million budgets to establish an outdoor presence because the target audience of the company is characterized by television advertisements.

Red bull energy drink

Red bull energy drink, which gives wings is selling around 6.8 million came in 2018, covering around 171 countries with a market share in India at 30%, Brazil at 22%, and Eastern Europe at 22% (Farris et. al. 2016). The company is estimated to have sold around 7.5 million cans worldwide in 2019; globally the company is the third major market shares in energy drinks with around 6.7% of the market share 2015. The Red Bull energy drink's target market is determined young urban make that is generally interested in sports and challenging activities as the tagline of the company says " Red Bull gives you wings". The company managed to be clear, consistent, and constantly in communication with its target market by organizing various events, advertisements, online channels, and endorsements.

Marketing Mix (4 Ps)

The marketing mix is group of actions and strategies which every company uses to promote its product and brand name in the market. There are 4Ps in the marketing mix are product, place, promotion, and price. Nowadays marketing mix has been updated by including several other important Ps of marketing like packaging, people, politics, etc all these elements are influenced by each other. These all elements of the marketing mix make up the business plan for every company which further provides great success to the company. The marketing mix is required with full attention, understanding, research, and also consultation. Below is a detailed description of the marketing mix of Red bull Energy drink and Lucozade energy.

Lucozade Energy Drink

• 
  Product - Lucozade every drink is in bright colours and detained bottles, cans, and in a disposable packet. The colours range from purple, to orange, and clear. The drink is also available in different flavours based on different fruits and is full of boosting essential vitamins. The packaging of the product makes it quite easier for consumers to hold the product when doing exercises (Asif al. 2015). This product has a psychological consequence on the mind of customers as they think that the product was created with their demand.

(Source: Dayla, 2020)

• Price – Food and beverages are the basic needs of every human being, for consistency consumers need to know how much a particular product is going to cost them or comes under their budget. Lucozade energy drink is classified as a part of food under Maslow's hierarchy of needs, competitors, and substitutes that poses threat to the target market and market share of the company.

• Place - Lucozade energy drink is known as a high-quality drink in comparison to other related products based on its performance. The product is simply recognized for its distinct packaging and bright colours (Cullerton, al. 2022). Strategic positioning of the product at shopping malls, retail shops, and supermarkets boosts the internal motivation of consumers to encourage them to buy the product.
• Promotion – Promotion involves the distribution of information about the product of the company to its targeted market and customers. The Lucozade energy drink uses two subdivisions of promotions which are above-the-line promotion, in this promotion of the product is done through television, radio, and internet advertising (Goranova, 2022). And for promoting the production company also uses an easy tagline 'Proven when tested', which target to create awareness among its customers. The company also practices below-the-line promotion as public relations, sports sponsorship, and personal selling.

Red Bull energy drink

• 
  Product - The product mix of Red Bull energy drink is as follow Red Bull drink comprises caffeine, B vitamins, taurine, glucose, and sucrose which is mostly demanded by overachievers, sports persons, or even adolescence. As there are variants of red bull energy drinks that come in sugar-free drink known as Red Bull SugarFree which contains acesulfame K and aspartame (McCarthy, 2017). The drink is presented in a blue-silver can with 2 red bulls forward-facing.

(Source: Getty Images, 2022)

• Place - Red Bull successfully in selling 7.5 billion cans across the world in 2019 with its huge allocation network. Red Bull is easily accessible at locations like supermarkets, accessibility stores, retail outlets, etc. through this it has become easy for every customer to purchase the product anywhere (Alon al. 2020).
• Price - Red Bull has numerous competitors in the business, the pricing strategy of the company is that to be the market head but also constructed on competitor pricing. By being leaders in the market company can effortlessly charge a finest price for products and customers are willing to purchase them because of their superiority and taste. Customers prefer buying in bulk as it is quite inexpensive than purchasing a single can.
• Promotion - Red Bull’s presence as an energy drink mainly targets sports enthusiasts. The company also has an attractive tagline “Red Bull gives you wings” and a television advertisement that is quite creative which attracts the customer to buy the drink (Kunz al. 2016). Other than tv and internet promotion the company is also involved in doing promotions by being part of various events like mountain biking and Red Bull Foxhunt, etc (Bremseret. al. 2018). With help of these promotional activities, the company wants to remind its brand to its customer whenever they see or hear the word energy drink, thus growing its customer base.

Conclusion

In conclusion, the report concluded that both the case company Lucozade energy and Red Bull energy drink have similar target markets as both the companies are dealing in the same kind of product which is energy drinks. Both the company are using the 4Ps very efficiently and giving tough competition to each other in the drink industry. As mentioned in the report Lucozade is more popular than Red Bull as its number of users is estimated to be around 4.96 million and Red Bull is estimated to 3.73 million users, in 2020.

Recommendation

Lucozade energy drink: As is stated above in the report that Lucozade energy drink is more popular among athletes and the company is also looking forward to expanding its market beyond the sport market. So, it is recommended that the company needs for a plan on strategies to expand its market by rebranding the products by keeping up the same quality check. The company is required to focus on providing special care to prevent the product from losing its selling attribute and original flavour that attracts the customers most. It is also recommended that the company should focus more on below-the-line promotion techniques by establishing good customer relations, personal selling, and sponsorship.

Red bull energy drink : Red bull's marketing mix is quite impressive than Lucozade but for getting a step ahead in the market Redbull energy drink needs to focus more on its advertising and also on the product's ingredients. In order to maintain and to build a bigger image in the market the company should work on advertising which something else than its cartoon advertisement and should focus on the next thing for attracting changeable consumer mass. The company should also need to re-look at its energy drink ingredients as the normal energy drink contains a high level of sugar which is not good for the consumer, other than its sugar-free product company should also focus on its most sellable energy drink.

References

Alon, I., Jaffe, E., Prange, C. and Vianelli, D., 2020. Global Marketing: Strategy, Practice, and Cases. Routledge.

Asif, M., Abbas, K., Kashif, M., Hussain, S. and Hussain, I., 2015. Impact of brand awareness and loyalty on brand equity. Journal of Marketing and Consumer Research, 12(1), pp.67-72.

Ben Tobin, 2015. Lucozade energy drink graph. Lucozade still has the energy. [Online]. Available through :<https://yougov.co.uk/topics/consumer/articles-reports/2014/10/20/lucozade-still-have-energy>. [Accessed on 29/10/2022].

Bremser, K., Walter, N. and Goehlich, V., 2018. A comparative study on global commercial advertisement perceptions-British and French viewers' responses to Red Bull. International Journal of Comparative Management, 1(4), pp.333-354.

Dayla Drinks, 2022. Marketing Mix. Lucozade Energy Drink Range. [Online]. Available through:<https://www.dayladrinks.co.uk/products/lucozade-energy-range/>. [Assessed on 28/10/2022].

Farris, P., Shames, E., Johnson, R.R. and Mitchell, J., 2016. Red Bull (a). Red Bull (a)(April 14, 2016).

Farris, P.W., Shames, E.R., Johnson, R.R. and Mitchell, J., 2017. Red Bull (Abridged). Darden Business Publishing Cases.

Getty Images, 2022. Marketing Mix. Red Bull Energy Drinks. [Online]. Available through :<https://www.gettyimages.in/photos/red-bull-drink>. [Assessed on 29/10/2022].

Goranova, P., 2022. The Advertising and Firms: the Global Strategic Orientation. LUMEN Proceedings, 18, pp.63-70.

Gurbuz, E., 2018. Theory of new product development and its applications. Marketing, pp.57-75.

Ilicic, J., Brennan, S. and Cullerton, K., 2022. Article History.

Kunz, R.E., Elsässer, F. and Santomier, J., 2016. Sport-related branded entertainment: the Red Bull phenomenon. Sport, Business and Management: An International Journal.

McCarthy, A.C., 2017. Reading the Red Bull Sublime. PMLA, 132(3), pp.543-557.

Ragsdale, F.R., 2016. Energy Drinks: The Elixirs of Our Time. In Beverage Impacts on Health and Nutrition (pp. 243-258). Humana Press, Cham.

Thabit, T. and Raewf, M., 2018. The evaluation of marketing mix elements: A case study. International Journal of Social Sciences & Educational Studies, 4(4).