Principles of Marketing Mix

This report analyzes the principles of marketing mix and their application in the context of Lucozade energy and Red Bull. It compares their target markets, products, pricing, distribution strategies, and promotional activities. The report provides insights and recommendations for improving marketing mix strategies.

Principles of
marketing mix

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................1
INTRODUCTION...........................................................................................................................1
FINDINGS.......................................................................................................................................1
Comparison of target market.......................................................................................................1
Product........................................................................................................................................2
Price.............................................................................................................................................4
Place............................................................................................................................................5
Promotion....................................................................................................................................5
CONCLUSION & RECOMMENDATION....................................................................................6
.........................................................................................................................................................6
REFERENCES................................................................................................................................7

EXECUTIVE SUMMARY
This report is based von the analysis and implementation of 4p's of marketing mix to
identify successful use of these elements in context of Lucozade energy & Reed Bull soft drink.
Secondary research data is used for this analysis and evaluation with comparison between both
the organisations.
INTRODUCTION
Marketing mix is refer as the tool which considered 4p's such as- product, price, place &
promotion. It is important for business organisation to analyse and evaluate these p's in order to
make effective strategies for achievement of business objectives (The Marketing Mix, 2020).
Lucozade energy is manufacturer of soft drink introduced in 1927 with the name as
“Gucozade” by Newcastle pharmacist. Then later changed as “Lucozade ” by British company
named as “Bheechman” in 1938.
Red Bull is developed in 1987 as a energy drink producer by Australian firm Red Bull
GmbH.
This report is based on marketing mix of both firms. How effectively they plan and
implement marketing strategies for their products in order to make successful launch of products.
Here marketing mix and target market of Lucozade energy & Red Bull are discussed to find-out
which brand is most successful and suggestions are recommended to improve their 4p's.
FINDINGS
Comparison of target market
It is the group of customers divided into several sub groups as to make it easy for
business entities to focus on particular target which is known as target customers or target market
of organisation. In context of Lucozade energy & Red Bull target customers of both firms are
considered below with suitable comparison:
Basis of comparison Lucozade energy Red Bull soft drink
Gender On the basis of gender
Lucozade energy targets male
customers for offering them its
As compared to Lucozade Red
Bull concentrates on both
males and females as target
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products. customers of business in order
to maximise sales and
revenues.
Age Lucozade targets people
between the age of 18-30 years
old on the basis of age of
target customers (Anshary and
Trilaksono, 2016).
On the other hand Red Bull
targets individuals of 18-35
years old for selling its
products and services.
Occupation Respective business targets
youngsters and teenagers who
are highly engaged in sports
due to high demand of energy
drinks at stadiums or fitness
centres.
While, Red Bull targets
college going students,
corporate employees and
business professionals.
Income level On the basis of income level
Lucozade targets people who
have high earning because of
higher prices of its product,
which is not easy to bear for
low and medium income
earners (Datta, Ailawadi and
Van Heerde, 201I).
As compared to Lucozade,
Red Bull not only focuses on
high earners. Thus, it targets
customers who have high to
average earnings due to its
favourable prices.
Lifestyle Lucozade targets individuals
having sport spirit and those
who are more emphasized on
fitness.
On contrary, Red Bull
concentrates on ambitious and
explorer people (šoraitė,
2016).
Product
It is related to physical and tangible goods and items required to satisfy the needs of
consumers in return of some monetary value offered by customers. This element of marketing
mix is related to colour, size, flavour, packaging and personality of a brand (The Marketing Mix:
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Product, 2018). In context of Lucozade and Red Bull this element of marketing mix is
considered below with suitable distinguish:
Basis of comparison Lucozade Red Bull
Essential product In context of Lucozade core
products of firm consists as-
sport hydro active, energy
drink.
On the contrary necessary
products of Red Bull includes
energy and mixed drinks,
cocktail & mocktail produced
by non-alcoholic ingredients in
order to take care about the
health of customers (Sudari
and et. al., 2019).
Flavour Lucozade concentrates on
different variety of flavours
such as- orange, lemon,
topical, pineapple, apple, new
wild berry etc. in order to
make its product tasty. This
helps in attracting customers
(Park, 2020).
As compared to Lucozade, in
terms of flavours Red Bull
focuses on rich fruits like kiwi,
blueberry, apple, coconut,
watermelon so as to make its
drinks healthy & tasty.
Colour On the basis of colours as to
impress buyers Lucozade uses
green, yellow, orange, purple
which highlights its products
in front of customer.
While, Red Bull concentrates
on colours like red, blue,
white, grey for getting
consumer attention.
Packaging It is important for promoting
product in among target
market. Lucozade uses plastic
bottles for packaging of its
products with slogan of
“Lucozade aids recovery”
On the other hand Red Bull
has effective packaging
strategy for its products such
as- use of cans with written
slogan of “giving wings to
people and ideas”. This makes
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which is not much impressive. it easy for firm to attract more
customers (Resnick, Cheng,
Simpson and Lourenço, 2016).
Brand personality The brand personality of
Lucozade is diverse with
“never say die” attitude. This
attracts ruggedness category of
customers that are masculine
and tough.
While brand personality of
Red Bull attracts excitement
category of customers who are
imaginative, daring & up to
date.
Price
This is also an important element of marketing mix which plays crucial role in deciding
the value of products and services with considering reliability of potential customers (Thabit and
Raewf, 2018). It presented in monetary terms which offered by buyers in return of products &
services. In respect of both organisation pricing strategies of both are considered as follows:
Lucozade energy Red Bull energy drink
Lucozade energy has larger number of
premium customers who have capabilities to
pay higher prices for better quality. They are
more conscious about their health and prefer to
use premium products of respective
organisation. Thus, due to large customers base
with high spending capacities Lucozade energy
uses premium pricing strategy for its products.
According to this strategy quality of products
should be high with higher prices which leads
to achievement of higher profits within limited
time. By using this strategy of pricing not only
maximise the profit of Lucozade but also
performs important role in successful brand
image of business. Thus, by using premium
On the other hand Red Bull focuses on diverse
pricing strategies for increasing sale, revenues
and profit of business. Red Bull uses premium
pricing strategies because of massive
awareness of its products and for maximising
profits as much as possible. Respective
organisation also uses lower pricing strategy
for bulk selling of products with some discount
for those customers who prefer to purchase
product at discount rather than paying higher
prices for single unit. This helps in maximising
the sales and revenues of business. Red Bull
also concentrates on competitive pricing
strategy for gaining competitive advantages
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pricing policy for products of respective
organisations shows effectiveness of marketing
mix but, it also has some negative aspects. For
instance in times of recession people are easily
switch towards buying from premium to
essential products at lower prices which leads
to fail of this strategy.
over its competitors
(Thao and Duong, 2019). Thus, pricing
strategies of respective firm are more effective
and successful as compared to Lucozade
energy.
Place
Physical distribution of a product or good is related to ensure effective display or show
products and services so as to assist and influence customers in order to create urge of buy . In
terms of Lucozade and Red Bull physical distribution strategies of both addressed below with
comparison:
Lucozade energy Red Bull energy drink
Respective organisation display its products in
retail outlets including supermarkets, shopping
malls, hypermarkets so as to make
effectiveness in their distribution of goods. It
also offer online services for its products
through company websites or through
authorized e-commerce companies (Wu and
Li, 2018). Lucozade also engaged in
collaboration with pharmacies and universities
to store its goods at canteens for attracting and
influencing consumers. This helps in
increasing sale and market share of business so
as to ensure long term sustainability of
products and services.
On contrast Red Bull focuses on making
purposeful display of its product so as to make
it easy for its customers to reach goods. It
stores its energy drink cans at freezes at bars,
shopping malls, stadium and grocery stores so
as to attract customers for buying these drinks
when they go for shopping or for
entertainment. This strategy of Red Bull helps
in rising firms profit and enhancing brand
awareness. Drink of respective firm are also
stores at online stores of business with single
unit or in bulk (Yin and Ritter, 2020).
Promotion
This element of marketing mix is very important for powerful promotion for goods and
services in order to create brand awareness (Wirtz and Lovelock, 2016). It helps in ensuring right
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product, at right price, in right place, in right hands. Comparison between promotional strategies
of Lucozade and Red Bull are considered below:
Lucozade energy Red Bull energy drink
Promotional tools of respective organisation
considered as advertisement, promotional
campaigns, direct selling etc. for making
effectiveness in marketing and promotion of
its goods & services. Lucozade also focuses on
digital marketing tools. For instance social
sites such as- Facebook, Instagram for reaching
items to its target market.
On the other hand Red Bull several marketing
strategies like promotional events. For
instance skating, mountain biking, ALT, BMX.
It also invites celebrities to promote its
products and services in company's events.
Displaying products non super markets, night
clubs are also shows effectual promotion
strategies of respective business.
CONCLUSION & RECOMMENDATION
From above report it is analysed that both firms successfully targets its potential
customers for fulfilling needs of them as well as rising brand image and profit of business.
Marketing mix of both firms show successful application of product, price, place and promotion
strategies. It is suggested for Lucozade to reduce its prices for average class in order to reach
highest level of sales and profit maximisation.
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REFERENCES
Books and Journals
Anshary, M.A.K. and Trilaksono, B.R., 2016. Tweet-based target market classification using
ensemble method. Journal of ICT Research and Applications. 10(2). pp.123-139.
Datta, H., Ailawadi, K.L. and Van Heerde, H.J., 2017. How well does consumer-based brand
equity align with sales-based brand equity and marketing-mix response?. Journal of
Marketing. 81(3). pp.1-20.
Išoraitė, M., 2016. Marketing mix theoretical aspects. International journal of research
granthaalayah. 4(6). pp.25-37.
Park, S., 2020. Marketing management (Vol. 3). Seohee Academy.
Resnick, S.M., Cheng, R., Simpson, M. and Lourenço, F., 2016. Marketing in SMEs: a “4Ps”
self-branding model. International Journal of Entrepreneurial Behavior & Research.
Sudari, S. and et. al., 2019. Measuring the critical effect of marketing mix on customer loyalty
through customer satisfaction in food and beverage products. Management Science
Letters. 9(9). pp.1385-1396.
Thabit, T. and Raewf, M., 2018. The evaluation of marketing mix elements: A case
study. International Journal of Social Sciences & Educational Studies. 4(4).
Thao, N.X. and Duong, T.T.T., 2019. Selecting target market by similar measures in interval
intuitionistic fuzzy set. Technological and Economic Development of Economy. 25(5).
pp.934-950.
Wirtz, J. and Lovelock, C., 2016. Services marketing: People, technology. World Scientific
Publishing Company.
Wu, Y.L. and Li, E.Y., 2018. Marketing mix, customer value, and customer loyalty in social
commerce. Internet Research.
Yin, Q.E. and Ritter, J.R., 2020. The speed of adjustment to the target market value leverage is
slower than you think. Journal of Financial and Quantitative Analysis. 55(6). pp.1946-
1977.
Online
The Marketing Mix: Product. 2018. [Online] Available through
<https://www.consumerpsychologist.com/intro_Product.html>./
The Marketing Mix. 2020. [Online] Available through
<https://www.cleverism.com/understanding-marketing-mix-concept-4ps/>./
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