Principles of Marketing

This report discusses the principles of marketing and their application in improving the efficiency and effectiveness of organizations. It covers topics such as target market, brand evaluation, pricing strategy, place marketing mix, and promotion strategy. Case studies of Lucozade and Red Bull are used to illustrate these concepts.

Principles of Marketing

Executive summary
Marketing principles are essential part of every organisation where facilitates the
organisation to conduct the better campaign and advertisement. The method of research that has
been using in this report is secondary research and observational research. This report include the
target market of the companies and all marketing mix is being used to evaluate the different
methods, tools and techniques of all companies. These will help the companies to determine the
ways to improve the efficiency and effectiveness of the organisation.

Table of Contents
Executive summary..........................................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Determining the target market of the companies.........................................................................4
Evaluating the brand and product model ....................................................................................5
Pricing strategy of the product.....................................................................................................6
Determining the place marketing mix..........................................................................................6
Determining of promotion strategy of the companies.................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................1

INTRODUCTION
Marketing is very effective tool and technique that is used in companies to attract and
make awareness about the brand among the customer. This helps in increasing the overall
effectiveness to improve the productivity of organisation (Baimbetova and et.al., 2020). In this
report it is being discussed about the different marketing principles and evaluating the different
tactics to increase the promotion of the brand and company. In this the company that is chosen is
Lucozade energy which is manufactured and marketed by the Japanese company Suntory and
created as “Glucozade” in the UK. The other company is Red Bull is energy drink that
established in Australia in 1987 and has highest market share. In this report it is being determine
the effectiveness of marketing mix and evaluating the STP marketing planning process. Apart
from that it is being discussed about the comparative analysis of the organisation and their
benefits.
MAIN BODY
Determining the target market of the companies.
Target market refers to the group of potential customer to whom company wants to sell
the products and services and organisation perform its basic efforts to influence the specific
group of people. The need to target market it includes the three ways such as Segmenting,
targeting and Positioning in following companies are-
 Segmentation- This refers to the segmenting the group on the basis of Geographical,
Demographical and behavioural. In the context of Lucozade this segmented as Sports
drink and its target the age group of adults between 16-30 (Iskoskov, Kargina and
Klochkov, 2019). This segmenting the group of sports person. On the other hand Red bull
is energy drink that target the young people and both male and female. It target semi-
urban and metro politician cities.
 Targeting- This refers as targeting the specific group of people that were specifically
influences. In Red bull, their main target is teenagers and college students or working
professional. On the other hand Lucozade also target the youth who were willing to
purchase the healthy drink and want to get health conscious.

 Positioning- This concern with in which kind of place the company wants to advertise
the product. In the Red bull, they positioned themselves as the luxury energy goods.
Lucozade positioned as Sports based positioning that only prefer by the sports person.
Evaluating the brand and product model
Levitt' s model is five step of customer hierarchy and this helps in evaluating the
important steps used in an organisation and useful in improving the benefits of company.
Following are product level are as follows-
 Core benefit- This concern with fulfilling the needs and requirements of customer. In the
context of Lucozade drink, the core benefit is providing the energy to the customer. With
the Red Bull, the core benefit is fulfil the desire of drinking energy drink to the customer.
 Generic benefit- This concern with having attributes and feature to process the digital
image. In Lucozade drink the feature is it gives instant energy to the people and sport
person to help in their sports. On the other hand Red bull provide the quality drink that
will boost up their body (Karimbekov, 2019).
 Expected product- This refers to expect from the brand when customer purchase. In the
Lucozade drink, sports person expect that this drink will fulfil all need in terms of energy
and increase their stamina during sport. For the Red bull, the customer expect that it gives
instant energy and other benefits to their health.
 Augmented product- This refers as additional feature that is provided by the brand as
compared to competitors. Lucozade drink, the additional feature will be that this provide
the stamina to the sports person that will long last and will improve the overall efficiency
and benefits. In the Red bull, the feature will be to give the taste with the energy drink
and provide sanctification during the desire of drink.
 Potential product- This include transformation that product might undergo in future.
The need of Lucozade drink is that it fulfil all requirements of an sports person and will
give the long term benefits of product. In the red bull, need is to provide best taste and
will provide multiple health benefits to the teenagers that gives optimum satisfaction
(Palmatier and Sridhar, 2017).
Aaker brand framework- This model is controlled by the five components and it is essential to
understand this from the point of view of organisation. Following are the components are as
follows-

 Brand loyalty- The people are loyal enough to the Lucozade brand and will not switch
over another brand. Red bull also has loyal customer who only prefer to drink.
 Brand awareness- Lucozade drink is popular enough among the sports person and has
good awareness in the public. Red bull is also well aware brand in UK and other
countries as well as compared to Lucozade drink (Viendyasari, 2018).
 Perceived quality- Lucozade drink is considered as strongest brand among sports person.
Red bull is not considered as best quality product in the market.
 Brand association- Lucozade drink is considered as sports drink and people feel good.
Red bull considered as good quality energy drink and they feel better better.
Pricing strategy of the product
The pricing strategy considered as important part of the organisation and need to be
effectively determined by all organisation (Kukartsev and et.al., 2020). In the context of
Lucozade drink, there is competitively priced at slightly higher than the market price and this
will help in building the image of higher quality product in the market. The pricing strategy is
that it help in achieving the maximum market share and customer base. On the other hand Red
bull is using the premium pricing strategy as their price is above that of competitor's product.
This indicate the better quality of product and benefit and it is one of world's best selling energy
drink. Its pricing strategy is that of marker leader but based on competitor pricing and most of
people prefer to buy premium brand as compared to cheaper brand.
Determining the place marketing mix
Place or distribution strategy refers to the strategy of providing best place to the advertise
the product and brand. In the context of Red bull is successfully managed to sell 5.9 billion cans
worldwide in 2015 because of distribution network. This is available at convenient location like
supermarket, store, retail outlet or even night clubs and casinos. This make it easy for the
customer to purchase the product. On the other hand, Lucozade drink providing access and
convenience for consumer and sold in all minor and major stores and apart from that it sells on
online as well (Lewnes, 2021). This brand has efficient distribution system that keeps the
customer satisfied with the brand as this is easy to find brand in the UK. Even this is available to
health care pharmacies as well. This create the overall visibility of products and will help in
terms of brand awareness and lead to purchase of the product at greater level.

Determining of promotion strategy of the companies
Promotion mix is most important factor that will help in increasing the overall awareness
of the brand among buyers and lead to certain benefits. In the context of Lucozade, they promote
in many ways from the use of advertisement, use of promotional campaigns and direct selling
such as Manifested Marketing (Moravcikova and et.al., 2017). They advertise through mass
media such as television, newspaper and magazines and also conducted the campaign called
'Yes' on television. This does not involve the personal selling to the end user. On the other hand
Red bull, is using the tag-line “ Red bull gives you wings” as they organize lots of sports events
and even sponsor team as well as events. They do promotion through T.V, laptop, mobiles and
airing certain music festivals, shows, films, performance and videos. Apart from that they have
their own merchandise stores online and magazines for sports person.
CONCLUSION
From the above report it is concluded that Marketing principles are very essential from
the point of company and will improve the efficiency through brand awareness among people in
the market. In this report it has been discussed the target market of each selected company and
for that STP has been used to identify the audience. Apart from that marketing mix has been
determine such as Place, Promotion, Product and Price to evaluate the each components in the
organisation. This is useful in analysing types of methods and policies they used to compete in
the market.

REFERENCES
Books and Journals:
Baimbetova, A. and et.al., 2020. Conducting marketing research of new products of the
company. In E3S Web of Conferences (Vol. 159, p. 03001). EDP Sciences.
Iskoskov, M. O., Kargina, E. V. and Klochkov, Y., 2019, February. Innovative model of the
organization of a marketing system at engineering enterprises. In 2019 Amity
International Conference on Artificial Intelligence (AICAI) (pp. 992-997). IEEE.
Karimbekov, A.M., 2019. IMPROVEMENT OF THE MARKETING COMPLEX IN BANKS
OF THE ISLAMIC FINANCING PRINCIPLE. Alatoo Academic Studies. (3). pp.219-
224.
Kukartsev, V.V. and et.al., 2020. Features of evaluating the effectiveness of industrial enterprise
marketing activities. In IOP Conference Series: Materials Science and Engineering
(Vol. 734, No. 1, p. 012081). IOP Publishing.
Lewnes, A., 2021. Commentary: The Future of Marketing Is Agile. Journal of Marketing. 85(1).
pp.64-67.
Moravcikova, D. and et.al., 2017. Green Marketing as the Source of the Competitive Advantage
of the Business. Sustainability. 9(12). p.2218.
Palmatier, R. W. and Sridhar, S., 2017. Marketing strategy: Based on first principles and data
analytics. Macmillan International Higher Education.
Viendyasari, M., 2018. Application of ‘KISS’Principle on Marketing Mix Strategy (Firmax3
Product through Network Marketing in Indonesia): Case Study. KnE Social Sciences,
pp.56-66.
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