Principles of Marketing : Lucozade Energy

Principles of Marketing

INTRODUCTION
Marketing consist of all the strategies and the tactics that are used for identifying, creating and
maintaining the satisfying relationship between the company and the customers. This results in
creating the value for both the marketer and the consumers. It is a social and the managerial
process through which groups and the individuals obtain what they demand to satisfy their wants
and desire. The principles of marketing involve the 4Ps of marketing mix that are product, place,
price and promotion. For implementing or execution of the marketing strategy effectively and
efficiently, the use of these four components should be adequately and optimally. The present
study is based on the two brands that include Brand A as Lucozade Energy and Brand B as Red
bull, where the former is the Japanese company and the latter is the Australian company and both
deals in the same product range that is energy drink. Furthermore, the study describes the
principles of marketing of both the brands and their target market.
LO1. Analyzing the effectiveness of the principles of marketing for the company.
Lucozade Energy Red Bull
Target market This brand targets all the youth
or the young segment and also
the sports persons, athletes and
the gym trainers as they
require energy drink for
continuous performing with
efficiency. The target market
of the Lucozade is not as wide
as the Red bull. They generally
focus on high as well as
normal income class people.
Red bull targets the sports
people by using their tagline as
“Red Bull gives you wings”.
They organize several sports
events and sponsor team. Such
events include surfing,
mountain biking, skating,
windsurfing, BMX and
motocross. They endorse
various celebrities and sports
athletes. Specifically they
target high income class group.
Product Product means an item that is
sold to satisfy and to meet the
needs and want of the
customers. Lucozade energy is
one of the variant of its
product category. It is the soft
The idea of the red bull came
from the Kraeting Daeng,
which is considered as the
non-carbonated drink
originated in Thailand. It
contains the ingredients that
1

drink that is manufactured by
japanese corporate and
marketed as the range of
energy drinks or sports.
Description of the Lucozade
drink is featured as the glucose
solution of the water with a
slight orange-flavor energy
drink packed with the glass
bottle with a wrapper in the
yellow cellophane. Lucozade
is particularly designed for
boosting the energy level of its
users and this has been
revealed in the examination.
are similar to the western taste.
The energy drink, Red bull
contains taurine, sucrose,
glucose, B vitamins and
caffeine which is mainly
demanded by the sports people
, for party people and
workaholics. As per the trend
occurred in the youth segment,
they introduced a sugar free
range known as Red bull sugar
free. The drink is packed in a
tall blue-silver tin with two red
bulls on front. Red bull is a
very popular drink across the
globe.
Price Pricing means the amount that
the customer pays on buying
or consuming the product. It is
the only element that directly
links with the sales and the
revenue. Lucozade energy sets
varying prices in different
countries as per the demand of
the customers and the seller
which in turn means that it
uses the differential pricing
strategy where different prices
are charged from different
customers in the different
country for the same product.
Red bull operates in a
competitive world and has
huge no. of competitors
present in the overall industry
dealing in energy drink, so
they adopt competitive pricing
strategy where prices are set as
per their rivalry. It also uses
the cost leadership pricing
strategy as the cost of its
products as compared to its
competitor is low and can earn
higher profits with achieving
economies of scale. As they
are the market leaders, they
2

The energy drinks of the
lucozade are charged at the
competitive pricing which
means higher than the
competitors in the market that
leads to create high branding
image of its brand. Skimming
pricing is also adopted by the
lucozade for its energy drink
product where it sets the prices
high for its new range of
energy drinks for gaining the
eagerness of the people for
trying the new product so that
higher profitability can be
attained.
charge premium pricing for
their energy drink for gaining
the brand value due to their
superior quality. It stands first
in the category of the energy
drinks which results in
becoming the most preferred
choice for the customers and
the demand of it will never
decline. Bundle pricing is also
availed to the purchaser where
slightly lower prices need to be
paid by them for buying in
bulk quantity. Thus, they are
resulted as the expensive drink
than the other competitors like
monster, cloud 9 etc
Place Place reflects facilitating easy
access to the customers and
providing convenience buying
to the people. Lucozade sold
its energy drink in almost all
the major and the minor stores
like super stores, street stores,
theaters, malls, vendor shops
etc. The distribution network
contains the retail outlets
through which it distributes its
energy variants to the ultimate
buyer. It has also entered into
the partnership with different
Red bull successfully managed
for selling around 5.9 billion
tins across the world and has a
wide distribution network. It
has its availability at all the
convenient locations such as
convenience stores,
supermarket, retail outlet,
clubs, casinos and even in the
bars. By this way, it created
ease for the customers in
buying the product. Red bull is
generally stored in the
exclusive refrigerators of its
3

learning institutions like
universities, colleges, schools
canteen all over the world. By
this the objective of
convenience and easy buying
for the customers has been
achieved by the firm. Thus,
this brand has an efficient
system of distribution and
build the satisfaction of the
customers so that brand loyalty
can be gained.
brand so that customers get
attracted to buy its energy
drink when they move for
outing or for grocery shopping.
Online availability is also
generated by the brand as a
bulk package or single can
which makes easy buying for
the customers. At convenience
stores and the supermarkets
the product of Red bull is
placed along with the other
competitive products
providing the choice to the
buyer to select from.
Promotion Promotion strategy is the
crucial component of the
marketing mix that the
company has to focus on and a
huge investment is involved in
this part of the marketing as it
directly links with the product
communication to the market.
It helps in creating the
existence of the product in the
market by using attracting
tools and techniques. There are
several ways adopted by the
lucozade in promoting their
energy goods such as
advertisement on television,
Red bull adopts various
promotional activities such as
availability of the Red bull tv
on the laptops, mobiles,
gaming consoles, tablets and
PCs arising at the time of
several music festivals, films,
performances, videos and
shows. It also has its own
merchandise outlets and the
magazines for the extreme
sports people. Through these
promotional tools they strive
for recalling about their brand
in the minds of the customers
so that large customers base
4

use of the sales promotional
tools like discount offer,
combo pack offer etc. and the
promotional campaigns.
Advertisement includes the
newspaper, magazines, social
media marketing in order to
attract the youth generation.
YES campaign was conducted
by the firm on the television.
The use of the famous
personalities also leads to an
effective marketing strategy
for the brand. The direct
selling done by the enterprise
also create more and more
opportunity for reaching the
targeted audience.
could be achieved.
LO2. Demonstrating the STP planning process of marketing.
Segmentation- As a segmentation strategy, Lucozade has introduced with the product that
resulted as ideal for the need and desire of the target market. It segments its market on the basis
of demographic sector of the consumers that is into the young females, high income class people
etc. Segmentation strategy of the Red bull include on the basis of certain characteristic
population is divided such as Geographic, Demographic, behavioral and psycho graphic. In the
geographic both domestic and the international region is covered with inclusion of all the urban
and rural areas. In demographic the age group between 16-30 and high income class people are
included. In behavioral ambitious personality and regular and non regular users are covered. As
psych graphic middle class and the upper class is involved.
5

Targeting- Lucozade adopts concentrated targeting strategy where it chooses to operate in the
particular and well defined class of customers through targeting them. Red bull follows the
differentiated targeting strategy where it offers different range of products to different segments
of the consumers
Positioning- Lucozade through its attractive packaging and flavors create a unique identity in the
minds of their target audience. Red bull utilizes mono-segment variant of positioning where the
company emphasize on the wants of the single segment of the customer. Its brand image and
taste created a positioning in the minds of its customers.
CONCLUSION
From the above report it is concluded that Marketing mix or principles of marketing is a vital
concept of management of the marketing. The main purpose and aim of each and every
organization is to maximize the profits. For achieving this aim, they need to concentrate basically
on the major 4 factors that includes the product, price place and promotion. Lucozade and Red
bull has created an effective principle as the marketing strategy which helps them in creating the
value of their brand image and can gain competitive edge over its rivalry. By following these
principles the companies can lead to high growth and success in the long run with sustainability.
It enables the corporate in creating the well known presence all over the world. Marketing
ensures the complete satisfaction and the sustained loyalty of the customers. It helps in
delivering an acceptable living standard. It facilitates information in determining the target group
that both the brands need to serve as a retailer.
6

REFERENCES
Online
Marketing Analysis of Lucozade.2019. [Online]. Available
through:<http://expertresearchers.blogspot.com/2013/01/marketing-analysis-of-lucozade.html>
7