Principles of Marketing

Verified

Added on  2022/12/23

|10
|2021
|95
AI Summary
This report covers the different marketing mix used by the Redbull and Lucozade. Both companies have brand reputation in the market place. This report defines different marketing strategies used by these companies and 4P's of marketing mix which are product, price, place, promotion. Marketing strategies used by Redbull and Lucozade helps to attain strong customer base and market positioning.

Contribute Materials

Your contribution can guide someone’s learning journey. Share your documents today.
Document Page
PRINCIPLES OF MARKETING
1

Secure Best Marks with AI Grader

Need help grading? Try our AI Grader for instant feedback on your assignments.
Document Page
Table of Contents
EXECUTIVE SUMMARY ............................................................................................................3
INTRODUCTION...........................................................................................................................4
TASK...............................................................................................................................................4
Comparison of target customer of Redbull and Lucozade ....................................................4
Use levitt's model for analysing the product and brand value of Redbull and Lucozade......5
Pricing strategies used by Lucozade and Redbull..................................................................6
Channel management used by Redbull and Lucozade ..........................................................8
Promotion strategies used by Redbull and Lucozade ............................................................8
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9
2
Document Page
EXECUTIVE SUMMARY
This report covers the different marketing mix used by the Redbull and Lucozade. Both
companies have brand reputation in the market place. This report defines different marketing
strategies used by these companies and 4P's of marketing mix which are product, price, place,
promotion. Marketing strategies used by Redbull and Lucozade helps to attain strong customer
base and market positioning.
3
Document Page
INTRODUCTION
Marketing is an tool which is helped to to promote its goods and service to the target
customer. Marketing is the only activity through which helps to engage to the final prospects. It
involves different functions which right away starts from identifying the target customer to
meeting the needs and desires of the target customer and accomplishing the profit gaols of the
organisation. Redbull is an Australian company, acquiring the large market share of sales of
energy drink (Bonaparte, 2019). As per 2019 market research, red bull sold approximately 7.5
billion cans. Lucozade is an UK based company producing soft drinks for its its customers. This
report covers 4 P's of marketing which involves comparison of target marketing, analysis of
products and brand values of two company, channel management, communication and
promotional methods used.
TASK
Comparison of target customer of Redbull and Lucozade
To determine the customer market of two companies that is Lucozade and Redbull. Both
the companies focusses on rendering products which offers of drink to its customers. Redbull
offers energy drink to its customers focusing on the youth segment is the customers. It promises
it rendering energy drinks which boost the energy of the customer. It offers different flavours
which enhances the stamina and sense of relaxation to the customers. Whereas Lucozade offers
energy and sport which promise for boosting the stamina of its customers and giving them
instant energy for playing sport (Brown, 2015). For marketing products and services it focuses
on the youth segment of the age between 18-30, who are well focussed on playing sports.
Lucozade is originated from the glucozade which offers its products by adding glucose and water
solution which helps gives instant energy to its customer base. For marketing its products it
targets the youth segment, Lucozade different online marketing channels where its customer are
easily available. The target customer of Lucozade is demographic segmentation which involves
analysing the target customer on the basis of the consumer behaviour and characteristics,
whereas Redbull focusses on target customer including the psychographic and demographical
factors which involves delivering value to the customer by studying their lifestyle pattern and
then developing products and services which fulfils their needs and wants. Demographic
segmentation involves segmenting the target market on the basis of the age, education, lifestyle,
4

Secure Best Marks with AI Grader

Need help grading? Try our AI Grader for instant feedback on your assignments.
Document Page
income to determine the exact market offering which suits there needs and wants. Redbull
analyses demographic factors and psychographic factors to produces the product which
stimulates metabolism and energies the body. Whereas, Lucozade focus on rendering products
for athletes by offering energy and sports drinks to the young section of the society (Hopkins,
and et.al., 2021).
Use levitt's model for analysing the product and brand value of Redbull and Lucozade
Levitt model was developed by Harold Leavit in 1965, which defines the change strategy,
it defines that how task, people, structure and technology are interrelated to each and helps in
development of product.
Task: It defines the basic purpose and objectives that any organisation has to accomplish from
rendering the market offering to the customer. Redbull and Lucozade are the two companies
which focus on developing products of energy drink which focuses on the youth segment and
achieve brand value.
People: It involves segmenting the customer market. Redbull and Lucozade segments and
focuses on the customer segment as the young section of the society. As these companies focuses
on rendering energy drinks so focusing on the youth whoa re highly involved in sport and
recreational activities in order to keep them engaged an energised through the days.
Structure: the structure is defines the description of the product which the company offers.
Redbull offers product ranges from coconut edition, pear edition, green edition, peach edition.
Lucozade produces product ranges from lemon, orange, wild berry (Lilien, Rangaswamy and De
Bruyn, 2017).
Technology: lastly technology determines latest technologies used by the company in order to
stimulate the efficiency in the production function. Both Redbull and Lucozade uses advanced
technology to achieve the productivity in production of the commodities. It also uses cloud based
technology to store the complete range of information about all business transaction and other
important data.
BASIS LUCOZADE REDBULL
Shape They serve there product on plastic
bottles
They serve energy drinks in cans.
Packaging They uses the plastic bottles and Redbull uses packaging in can, and
5
Document Page
render message of recycling these
plastic bottles.
shows the pictures of bull in te
packaging which symbolises the
strenth and energy.
Colour scheme They uses vibrant colours in order to
attract customer by packaging.
They uses blue and silver colours to
shows attractive colour schemes.
The brand value of Lucozade involves around rendering soft drinks which energies the
body, which helps in attaining brand value of the customer of serving quality product from year
which helps develops strong customer perception in the minds of the customer. Redbull produces
products by rendering energy drinks, achieving customer reliability and satisfaction from quality
products (Park, 2020).
Pricing strategies used by Lucozade and Redbull
Pricing strategies used by company helps to attract its customer, setting high prices for
the goods and services might loose the potential customers, whereas setting low prices might
reduces the profit goals of the company. The company should set prices which covers the cost of
producing the products and services. Pricing strategies used by Redbull and Lucozade involves
effective prices which attracts its customers by the market offerings (Solimun and Fernandes,
2018). Different pricing strategies used by Redbull and Lucozade are as:
Figure 1: Pricing of RedBull UK
6
Document Page
Figure 2: Pricing of Lucozade UK
Market penetration
Market penetration is the pricing strategies which involves setting the prices of the
products and services at lower market price. Market penetration strategy is used by Redbull and
Lucozade by setting the prices of the drink at lower price in order to gain the market share.
Lower and affordable prices oftens attracts the customer for buying the products and services.
The pricing strategy does not involves profitability goals initially but as the market increase the
business starts earning huge profit. It helps to gain competitive advantage as the customer base of
the company is strong.
Competitive pricing
Competitive pricing involves rendering pricing of the goods an services by seeing the
competitive pricing policies. Both Redbull and lucozade uses the prices of the goods and services
prices by seeing competitive prices of the products and services. Analysing the competitive
prices helps to determine the best prices which are effective and are frequently preferred by the
customers. Redbull and Lucozade sets the prices of goods and services at competitive pries
(Storey, Hess and Saffitz, 2015).
Cost plus pricing
Cost plus pricing involves setting the prices of the product and services by adding the
market price of the product and services on the cost incurred to produce the commodity. Redbull
7

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
and Lucozade uses this pricing strategies in order to achieve to recur the cost incurred in
production of each unit.
Value based pricing
Value based pricing strategies involves analysing the value of of product and services
determined by the customers. This pricing strategy is also called as customer oriented pricing
strategy as the company focusses on setting the prices which helps to attain customer
satisfaction. Redbull and Lucozade uses these pricing strategies in order to achieve customer
satisfaction by keeping the prices perceived by customer value and achieve strong customer base.
Channel management used by Redbull and Lucozade
Channel management is defined by developing the sales and marketing channel to deliver
value to final consumer. Redbull and Lucozade uses sales and marketing channels to develop
supply chain management channels. Effective supply chain management is determined by the
timely availability of raw material to carry production services and delivering it the final
prospects. Redbull and Lucozade uses the supply chain management by using different channels
of intermediaries which helps to render the products to the final prospects (Tuten, 2019).
Promotion strategies used by Redbull and Lucozade
In order to effectively communicate to the target customers Redbull and lucozade uses
different communication channels to communicate the products offered by the company to the
final customers. Lucozade and Redbull uses different promotional strategies in order to promote
its goods and services to the target customer. Since Redbull and Lucozade focuses on the youth
segment of the population so it uses different promotional tools which involves digital media
marketing. For digital media marketing Redbull and Lucozade uses social media platform like
Instagram, Facebook, where the youth segment of the customer can be easily found. Redbull and
Lucozade develops uses social media platforms by preparing social accounts where it post
pictures about this offering and new launches. With this effective promotional tool, it attracts
different customers with effective marketing strategies.
CONCLUSION
Marketing is an essential tool to engage with the target customer an build profitable
relationship. Marketing helps to develop effective marketing strategies which helps in attaining
8
Document Page
strong customer target base and market share goals. In order to promote goods and services to
the final customers, marketing is helpful to influence customer to engage in business operation.
9
Document Page
REFERENCES
Books and journals
Bonaparte, Y. L., 2019. Sustainable outcomes of an experiential learning project in a principles
of marketing course. Journal of Global Scholars of Marketing Science. 29(1). pp.7-14.
Brown, B. S., 2015. A Multiple Discriminant Analysis Prediction of Performance in Principles of
Marketing. In The 1980’s: A Decade of Marketing Challenges (pp. 112-115). Springer, Cham.
Hopkins, C. D., and et.al., 2021. Changing Perceptions of Marketing Ethics and Social
Responsibility in Principles of Marketing. Journal of Marketing Education,
p.0273475321995553.
Lilien, G. L., Rangaswamy, A. and De Bruyn, A., 2017. Principles of marketing engineering and
analytics. DecisionPro.
Park, S., 2020. Marketing management (Vol. 3). Seohee Academy.
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.
Storey, J. D., Hess, R. and Saffitz, G., 2015. Social marketing.
Tuten, T. L., 2019. Principles of Marketing for a Digital Age. SAGE.
10
1 out of 10
circle_padding
hide_on_mobile
zoom_out_icon
[object Object]

Your All-in-One AI-Powered Toolkit for Academic Success.

Available 24*7 on WhatsApp / Email

[object Object]