Principles of Marketing: Marketing Mix and STP Approach

This report discusses the marketing mix and STP approach in Principles of Marketing. It analyzes the strategies used by Red Bull and Lucozade Energy to promote their products. The report explores the elements of the marketing mix, such as product, price, place, and promotion, and discusses how these brands use segmentation, targeting, and positioning to reach their target audience. It also examines the core benefits, pricing strategies, distribution channels, and promotional activities of these brands.

PRINCIPLES OF
MARKETING

EXECUTIVE SUMMERY
The following report is based on two companies i.e. Red bull and Lucozade energy in
order to understand the term marking and their tool like marketing mix and STP approach. The
marketing mix is comprises of some crucial elements like product, price, place and promotion.
Both of these framework will helps company in relation to increasing the profit and sales margin
of company along with gaining competitive advantage. Additionally Both the companies are
beverage based company of different country.
Table of Contents

EXECUTIVE SUMMERY .............................................................................................................2
INTRODUCTION ..........................................................................................................................4
MAINBODY ...................................................................................................................................4
TASK 1............................................................................................................................................4
Critically asses the marketing mix of chosen brand....................................................................4
TASK 2............................................................................................................................................7
Discuss the STP approach of marking planning.........................................................................7
CONCLUSION ...............................................................................................................................8
REFERENCE...................................................................................................................................9

INTRODUCTION
Marketing is an activities that is undertaken by the company with the aim of promoting
services or product. It is a crucial function of management that aids company for increasing the
awareness about product as well as to enhance the sales. For carrying out this in effective manner
a marketing tool is used know as marketing mix. It comprises of elements like product, place,
price and promotion (Porral and Stanton, 2017). The following report is based on two renowned
brand of energy drink i.e. Lucozade and Red bull. Both are energy drink but manufacture by
different companies, red bull is Australia based company where as the other one is Japanese
based. In this report discussion and comparison of two brand with the help of marketing mix is
carried out. As well as STP approach that are being used by the firm in order to promote product
is discussed.
MAINBODY
TASK 1
Critically asses the marketing mix of chosen brand
Marketing mix is considered as a model which includes various elements that is used for
promoting the brand or product of company. It suggests guideline to company for putting right
product at right place in affordable price (Bonaparte, 2019). As well as it assist entities towards
gaining the competitive edge. In context of selected brands, the marketing mix is obstinate
below:
Product- The term product mean an item that is offered by company in which the product
means a physical item and the service is virtual offering. Levitt's model is used by company in
order to meet the demand of consumers by offering them products. This model is based on
satisfaction level of buyers. In which the most effective or important part is core benefits that
offers extreme level satisfaction to consumers. Different levels of selected model is discussed
below in relevance to two selected brand:
Core benefit- This is a basic needs that consumer desires to get from the product or
services. And the core benefits that is offered by energy drink is its taste, texture, flavours and so
on. In context of Lucozade all these belongings are present in order to provide statification to
consumers. On the other hand red bull is also a well known brand at marketplace so this proves
that it satisfy their consumers by meeting their demands. The delighted taste as well as the

ingredient that is used in red bull like B-vitamins, caffeine puts positive effects on cognitive
performance.
Generic product- It holds those befits that are essential to satisfy the fundamental need of
consumers. In which red bull is an energy drink and that boost the energy level of individual
apart from this, Lucozade is a soft drink that is well-advised as good drink of health.
Expected product-It is considered as a characteristics and attributes that desires a
consumers as benefits in product or service. The end user of Lucozade wish to get good quality
drink in lower rate. Whereas it is already full fill by red bull company as they offer high quality
drink is affordable price for meeting consumer expectation.
Augmented product- It refers to some additional benefits and attributes that provision on
meeting the demands of consumer. For this Lucozade need to adds some more benefits like sugar
free drinks. While the red bull is already involving extra features in their products in order to
attain the requirements of peoples.
Potential product-It tends to ability that how can a product can attracts consumers liking
on the basis of packaging some product look more attractive than others. It is essentials to satisfy
this for grabbing huge number of consumers (Gbadamosi, 2019). In order to meet with the future
requirements of customers Lucozade need to considered this feature in their products.
From above discussed points it has been analysed that Lucozade is offering core benefits
to their consumers and it is well known brands for its orange flavour whereas the Red bull is an
augmented drink as it only focuses on adding extra features to its products foe meeting need of
consumers.
Price- It refers to amount which is paid by the consumers after purchasing any product. It
is an important element of marketing mix as it affects the sales and profit margin of company.
Pricing strategy that are used by both of the selected company is discussed below:
Lucozade energy Red bull
 This company uses price penetration
strategy for offering good quality
product at affordable price.
 In order to sustain consumer base and
to combat with competitive rivalries,
they emphasis to lower the price rate.
 Red bull offers premium products to
their consumers and for this they
adopted premium price strategy that
permits company to charge additional
amount for the quality of product.

 Red bull is a market leaders and consist
higher brand brand within market so
influence people to pay premium price
for goods (Wanjiku Ndungu and
Wacuka Gikandi, 2018).
Place- It refers to the area where the product is available for end users. It is considered as
another important factors of marketing mix opt by company which ensures to provide goods at
right place in appropriate time. In relevance to red bull, they possess effective distribution system
and serve their products around 117 countries across globally. Along with it, they hold a strong
network connection with retailers too. As it is easily available to convenient shops, retail store,
supermarket etc. on the other hand Lucozade is available on seasonal or timely basis. It is
assessable on retail store and supermarket. Effectiveness of logistic management provides
company to gain advantage of competitive edge.
Promotion- It tends to creating awareness about product with the help of some
techniques like digital marketing, social media, advertisements and so on. In which the red bull
adopted celebrity advertisement and digital marketing for increasing the brand value and
awareness at marketplace. For this they uses tag line to like “Red bull gives you wings” in order
to grab ample peoples (Brychkov and Domegan, 2017). However, Lucozade uses newspaper,
billboards promotional activities for reaching all consumers. In addition to this they uses
personal selling too for communicating targetted segments.
Red bull Lucozade energy

TASK 2
Discuss the STP approach of marking planning
STP approach – It is a strategic tool of marking which helps company to reach out all
end users in effectual manner. As well as positioned brand among targetted peoples. The word
STP stands for segmentation, targetting and positioning. In context of Red bull and Lucozade
energy, this approach is mentioned below:
Segmentation:- In this strategy, market is sub divided on the basis of some categories
and these categories like demographics, behavioural psycho-graphics and geographical which
are discussed below:
Red bull Lucozade energy
 The segmentation which is carried out
by Red bull is on the basis of
demographics and psycho-graphics. In
demographics peoples are segmented
on the basis of age group, gender etc.
and in psycho-graphics, the market is
sub divided according to statues,
lifestyle , behaviour (Venturini, 2016).
 It has been found that Red bull is more
prefer by youth people compare to
teenagers and aged.
 Whereas the segmentation which is
carried out by Lucozade is on the basis
of demographic and geographic.
 It has been seen that, this energy drink
is more preferred by male compare to
female as it is a energy drink.
Targetting- In this company targets the segmented market so that they will able to reach
all peoples. In context of red bull the segment on the basis of demographic basis so they targeted
mostly 16 to 30 age group peoples and both male and females as it boot up the energy level of
individual. In order to increase more number of people towards their services they need to target
below 16 age people too by adding some features which they prefers. While Lucozade is an
energy drink that is prefers by male category of 15-40 age group peoples as well as it is only
available in urban areas not in rural areas. So for increasing sales and brand awareness they can
target rural area too.

Positioning- The value that a brand posses in market is term out as positioning. In
relevance to chosen brand red bull and Lucozade energy both of these brand are well known and
well established in market. Red bull is for premium brand that provides high and good quality
products. It is perceived for luxury that is available only at some outlets. This brand is only the
signal brand of this category and hence individuals has faith on it (Tuten, 2019). whereas
Lucozade is energy drink that is useful for unwell peoples and available at affordable price.
CONCLUSION
From above discusses report it has been analysed that in a business unit, marketing mix
plays a vital role. As it helps company in meeting the demand of consumers by providing desired
product at right place in affordable price. Then this will ultimately provides benefits to
consumers in terms of satisfaction level and company with relation to sales and profit margin.
Further, companies use STP approach in order to reach out all consumers in effective manger.

REFERENCE
Books & Journal
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.
Brychkov, D. and Domegan, C., 2017. Social marketing and systems science: past, present and
future. Journal of Social Marketing.
Gbadamosi, A., 2019. Contemporary issues in marketing: Principles and practice. SAGE
Publications Limited.
Porral, C. C. and Stanton, J. L., 2017. Principles of marketing. ESIC Editorial.
Tuten, T. L., 2019. Principles of Marketing for a Digital Age. SAGE Publications Limited.
Venturini, R., 2016. Social marketing and big social change: Personal social marketing insights
from a complex system obesity prevention intervention. Journal of Marketing
Management, 32(11-12). pp.1190-1199.
Wanjiku Ndungu, M. and Wacuka Gikandi, J., 2018. Strategic marketing of electronic resources
in academic libraries in Kenya. Journal of Scholarly Publishing. 49(4). pp.435-452.