Comparison of Target Market

The main aim of this assignment is to focus on the marketing process and evaluate the extent of the marketing decisions that a company should make for the purpose of selling the product and services (Armstrong, Adam, Denize and Kotler,  2014). Two brands are chosen for this assignment that is Lucozade Energy and Red Bull. Lucozade Energy is Japanese Company that is marketed for a sports and energy drinks. Lucozade Energy drink has been the leader of the market in the energy drink category which market share is 60% (Lucazade, 2018). Red Bull is another competitor of this company that serves energy drink to many people. The market value of this company is 27%. More information about the above mentioned company are elaborated below with taking consideration of the marketing mix and target market.

In the context of Lucozade drink, it has been found that the target group for this drink is youth. The drink of this company has seemed a brand obsessed with physicality. It has been found that the recent push targets young men that age between 18 and 30, as the brads offer to huge its audience further than the sports performance market. For instance, the main strategy of the company is to divert the mind of the manual labourers as they consume Lucozade as a soft drink in place of as a sporting energy product (Lucazade, 2018). Due to this target, the budget of £2.2 million out of £5.5 million has been given to making an outdoor availability, on the other hand, the target audience is featured by its huge level of television viewing which is considered as highly mobile (Jula, Munteanu, Rusu and Lang, 2016).

With respect to Red Bull, it has been found that the target of the company is the bachelors, professionals and the youth that age between 16 and 30 years have been targeted by this company (Cnossen, Li, Sampath, Taylor-Maisano and Tsonev, 2017). Males with good income are the major target by the company y to sell their products. Psychographic segmentation buyers are covered business class, students and working class executives. Ambitious and open to experience are personality entailed under the target market of Red Bull Company. In the demographic segment, the major target is the college students and teenagers (Kotler and Armstrong,  2013).

In a nutshell, the Levitt’s model implies that all aspects of the product, experience or service fall into three categories such as generic, experience and augmented.

The core product of Lucozade is a soft drink that marketed as a range of sports and energy drinks. The main focus of the company is on making energy products. On the other hand, the product of Red Bull is entailed Red Bull Energy Shot, Red Bull Sugar-Free, Red Bull Total Zero.

The main aim of Red bull product is to provide customers with the high energy kick. The product of the company is a sweet and caffeinated drink that available only in rather costly 250ml cans (Measham, O’Brien and Turnbull, 2016). Along with that, this company also sells brand related accessories, media products, headwear, gift ideas, and apparel. In the context of Lucozade, it has been found that the main motive of the company is to make a design in order to boost the energy of the athletes.

Product

Augmented product covers warranty, distribution network, after sale services and other services. In the context of Red Bull, it has been found that this company has intensive competition but around 70% of sales rely on the energy drink. The product of the company is well known by the customers to vitalize body and mind. The product of Lucozade can refer to the labeling and packaging and it is vital for the company to make the product appear more developed in order to boost the energy and that is why the company has changed its tagline from “original” to “energy drink”.

With respect to price, it has been found that Lucozade Company is priced higher in comparison of their competitors that facilitates in building an effective image of high quality in the market. The pricing strategy of the company is considered as the source of a drawback in the term immediately after global recession where a number of customers in the market has the tendency to move for lower rate products for the aim of reducing the purchasing power.  

By considering Red Bull Company, it has been found that there are number of competitors of this company but yet they are the market leaders. The pricing strategy of the company is made as per taking consideration of the youth. People prefer to buy the product of Red Bull in bulk as it is not costly in such a scenario.

It has been found that Lucozade is fetching a household name in a lot of components of the globe with most of the trade outlets storing the products. The management of the company has an active team that makes sure that the products are stored in retail outlets such as hypermarkets, supermarkets, and other outlets (Harrington, Ottenbacher and Fauser,  2017).  On the other hand, it has been found that the customers of Lucozade do not want to move to huge lengths to right to use the product they desire to the consumer and they would in a number of cases choose to make do with an effective available substitute.

Redbull is a well known company and this brand has succeeded in selling more than 5.9 million products worldwide in 2015 (Glanz, Johnson, Yaroch, Phillips, Ayala and Davis, 2016). The product of Red Bull is available in at convenient locations such as a retail outlet, supermarket, convenience store and many more. Along with that, the product of this company is available online.  

Lucozade prefers direct marketing for a promotion that includes the person selling to the end user. The efforts of direct marketing are chiefly channelled to the personalities in the targeted companies. Along with that, the company uses social marketing in which the company approaches customers directly through using social sites on which the company put all information and recent updates about the products of the company in order to attract a huge base of customers (Gardner, 2018). There is an example of an initiative between Lucozade and Spotify which is music developed site called to be enough popular with the youth.

Price

Red Bull is the energy drink that targets a number of sports people with their tagline “Red gives you wings”. The company has organized a number of events programs in order to develop a huge customer base. Along with that Red, Bull Company endorse a number of sports athletes as well as celebrities. The company has a Red Bull House of Art where the management of the company motivates artists to represent their art in during of 3 months at their demonstration. There is another promotion strategy of Red Bull T.V. that accessible on PCs, gaming consoles, mobiles and PCs. The merchandise stores are obtained by the company and magazines for great sports persons.

Conclusion

It has been concluded from the above discussion that target market is helpful in developing the growth of the company by keeping mind the potential customers. This assignment has focused on the target market and the marketing mix for which two companies of Redbull and Lucazade have been taken. The discussion has been made on targeting marketing in which the depth analysis has been done with both companies. It has been found that the pricing strategy of the companies is different from each other which are natural because both companies are having their own target market. Availability of the products of both companies is approachable which helps in developing the growth of the company in a significant manner. The promotion strategy of both companies is different from each other but both have adopted an effective strategy for a promotion that helps them to approach a large base of customers.

It has been recommended to both companies to focus on the expansion of the market as the growth of the business can be developed if both companies take consideration of the effective strategies. There can be scope for both companies to look forward to add on new products by which the company can get a more access to reach a number of people. This activity would be helpful for both companies to get more growth in the industry.

References

Armstrong, G., Adam, S., Denize, S. and Kotler, P., 2014. Principles of marketing. Pearson Australia.

Cnossen, C., Li, Y., Sampath, N., Taylor-Maisano, W. and Tsonev, V., 2017. What gives Red Bull wings: Creating a successful market-oriented organization.

Gardner, R. 2018. Media: Strategy of the week – Lucozade targets males with contagious strategy. Available [online]: https://www.campaignlive.co.uk/article/media-strategy-week-lucozade-targets-males-contagious-strategy/225100. Accessed on: 5th Dec 2018.

Glanz, K., Johnson, L., Yaroch, A.L., Phillips, M., Ayala, G.X. and Davis, E.L., 2016. Measures of retail food store environments and sales: review and implications for healthy eating initiatives. Journal of nutrition education and behavior, 48(4), pp.280-288.

Harrington, R.J., Ottenbacher, M.C. and Fauser, S., 2017. QSR brand value: Marketing mix dimensions among McDonald’s, KFC, Burger King, Subway and Starbucks. International Journal of Contemporary Hospitality Management, 29(1), pp.551-570.

Jula, T.C., Munteanu, C., Rusu, A. and Lang, C., 2016. Long Term Consumption of red Bull and Alcohol can Affect Rat Skeletal Muscle Metabolism. Studia Universitatis Babes-Bolyai, Biologia, 61(1).

Kotler, P. and Armstrong, G., 2013. Principles of Marketing (16th Global Edition).

Lucazade, 2018. About Us. Available [online]:https://www.lrsuntory.com/our-brands/lucozade-energy/ Accessed on: 5th Dec 2018.