Principles of Marketing: Analysis of Strategies and Targeted Market

This project report analyzes the influence of principles of marketing and the impact of marketing strategies on product, price, place, and promotion. It also examines the targeted market of Lucozade and Redbull. Findings include an evaluation of pricing strategies, channel management, and promotion strategies used by these organizations.

PRINCIPLES OF MARKETING
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EXECUTIVE SUMMARY
The aim of this project report is to analyse the influence of principles of marketing and
state the monitor impact of marketing strategies of product, price, place and promotion. This
project reports also throws a light on target market of an organisation. This project will highlight
all required information regarding marketing strategies and principles of marketing strategies.
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Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
TASK...............................................................................................................................................4
Comparison of targeted market...................................................................................................4
Analysis of products and their brand values...............................................................................5
Evaluation of pricing strategies that are used by organisations..................................................6
Lucozade and RedBull’s channel management..........................................................................7
Evaluation of promotion strategies used by organisations..........................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
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INTRODUCTION
Marketing is an approach through which an organisation can promote their products and
services that are rendered by an organisation. The techniques of marketing helps an organisation
to increase sale and deliver their products through advertising and promoting their services and
maintain their brand image (Amin and Priansah, 2019). Lucozade and Redbull are two
organisation that have been selected for conducting this project. Lucozade manufactures soft
drinks and marketing of this company have been done through Suntory, a Japanese company.
Lucozade was founded in 1927 in UK. Lucozade generated 3.7 million from the sale of their
energy drinks. Redbull is an Austrian company that started in 1987 and the company
manufactures energy drinks. Redbull generated 2.89 billion U.S. Dollars from the sale of their
energy drinks. This project report is based on marketing strategies that are adopted by an
organisation through which they can evaluate the market share, market size and recent trends in
market. This report cover all necessary information regarding the marketing mix strategies that
are practised by an organisation.
TASK
Comparison of targeted market
The organisation that have been chosen for conducting this research are Redbull and
Lucozade through which targeted market of both organisation is explained below:
Lucozade have two variety of drinks that company offers to consumers and in the marketplace.
The products that have been manufactured by Lucozade are Lucozade sport and Lucozade
energy drink. Redbull have several products that are manufactured by the company, which are
Redbull energy drink, Redbull sugar free drink and Redbull total zero drink which have no sugar
in it.
Lucozade sport aims to target young males between the age group of 18 to 30 through
which they can target audience beyond the sports performance market (Bolshakova, Shakurov
and Slanov, 2020). This product of Lucozade aims to target athletes and millennials who aims to
maintain their fatigue and stay hydrated. Investing in advanced marketing strategies will help
business in increasing the sale of the products through analysing the customer demand and recent
trends in marketplace.
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Through Lucozade energy, Lucozade aims to target numerous audience through which
they can target the young male and female population and maximize the profit from the sale of
the products. Lucozade aims to target teenagers between the age group of 12 to 17 and men
between the age group of 18 to 34 years through which they can increase the sale of their
products and promote consumption of energy drinks.
Through Redbull energy drink, redbull aims to target young customers between the age
group of 15 to 30 through which they can maximise their profits. The target market of Redbull is
interest in sports and recreational activities (Istiqomah, Mulyawisdawati and Meriyati, 2021). By
providing energy drinks, Redbull aims to target the audience who are health conscious and
mostly they aim to target the male population by attractive advertising and promoting energy
drinks in marketplace.
Redbull aims to target the market with their redbull sugar free drink through which they
will target the customers who are health conscious. With this sugar free drink, the company aims
to target the children's and adults and fulfil the demand of non-caloric drinks. Through
maintaining the same quality, taste and flavours of the drink, organisation aims to target the
customer and the marketplace which demands healthier products and still maintain nutritional
value of drinks.
Analysis of products and their brand values
By using Levitt model of branding, analysis of Lucozade and Redbull have been stated
below in which several factors have been evaluated:
Lucozade Redbull
Shape They are providing energy
drinks in plastic bottle and in
cans which are environmental
friendly.
Redbull is providing drinks in
cans as it is easy to carry and is
disposable in nature.
Packaging The package of these drinks
are keep simple with the
motive to use them and
dispose it. They are easy to
carry aluminium cans.
The can is portable, durable
and easy to hold, these are
aluminium cans (Lees-
Marshment, 2019).
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Colour scheme They are using red, orange and
yellow combination in its
packaging that is focusing on
bright colours to attract
customers.
They are using blue colour
scheme to attract numerous
customers.
The brand value of Lucozade is to build new and innovative techniques through which
they can provide can build and maintain trust of customers (Palmatier and Crecelius, 2019). The
brand value of redbull is to enhance the lives of individuals. The brand values are based on
people, culture and on idea through which they can capitalize their business and enhance
company growth.
Evaluation of pricing strategies that are used by organisations
Figure 1: Pricing of RedBull UK
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Figure 2: Pricing of Lucozade UK
Price skimming - This strategy is undertaken by brands while introducing a new product
in the market. This methodology revolves around high income shoppers, especially the
customers who are considered as trendsetters and early adopters (Shulgina, 2017). Both
Lucozade as well as RedBull use this methodology, but the application of this strategy is
different for both organizations. While Lucozade focus on establishing a security by ensuring
that their price is not too extreme, RedBull focuses on online reputation management during the
initial launch period. Both of the organizations develop their products in accordance to fast
moving trends and use same approach as their pricing strategy but the application for the same
differs.
Competitive Pricing – This approach is an extension for penetration pricing strategy. The
goal behind this approach is to initiate a shift of target audience from competitor’s brand to own
organization. This pricing strategy works in many levels, for example, Lucozade uses this
approach by fluctuating their price in accordance to the price determination of RedBull. On the
other hand, RedBull offers additional benefits for example giving a determined percent of drink
more, or giving additional benefits like redeemable discounts. This pricing strategy is considered
to be one of the most efficient ways of customer acquisition and both of the chosen brands make
fullest utilization of benefits associated with application of this approach.
Loss Leader Pricing – This is one of the most contradicting pricing strategy used by both
Lucozade as well as RedBull. Brands all over the globe uses discounts to enhance their overall
sales, the key difference between Lucozade and RedBull’s application of this particular strategy
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is, instead for going for per unit discount, the organization offers their customers greater
discounts when they purchase comparatively more quantity of products. Discounts are a part of
income that organizations choose to sacrifice in exchange of acquiring customers, and giving
discounts on comparatively more quantity of products helps Lucozade and RedBull in
maximizing their sales as well as acquiring and retaining customers at the same time.
Lucozade and RedBull’s channel management
Channel management is an accumulation of marketing and sales strategies where an
organization tries to reach to widest possible customer range. Both of the brands offer bestselling
energy drinks and therefore stores all over the globe have stocks of products offered. The
channel of distribution that are undertaken by both of the organizations differs as well
(Swanson,, 2019). While RedBull uses refrigerated logistic for transfer of their products,
Lucozade outsources these operations to local outsourcing organizations. Both of the
organizations uses different supply chains and still manages to make their products available to
customers all over the country. RedBull holds a competitive edge in this scenario. The
organization handles their logistics chain by themselves and therefore reduces all the risks
associated with having an intermediately. In addition to that, RedBull can be found at almost
every shop all over the country (Tontuș, 2018).
Evaluation of promotion strategies used by organisations
Communication act as an essential part of business firm in order to meet needs and
perform task in effective way. this helps in solving using business function. Redbull is
international organization which is performing its function at global level. In order to
communicate its product on mass scale Redbull is using TV advertisement. On the other side,
these are number of function which are performed by the Lucozade in order to promote its
product and services. Here are televisions, newspapers, and magazines are used by Lucozade.
Which communication methods do they use to build their respective brands?
In order to communicate in effective way and achieve business objectives there are
number of ways which can be use by the researcher to achieve business objectives. Company
use to be affordable brand which depends upon the market condition and situation of area in
which firm is working. This is useful in meeting needs and perform task according to needs. This
helps in attracting customer towards brand and helps in performing business function. On the
other side, Lucozade use to target health consist and luxury section of society.
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CONCLUSION
It has been concluded that organisations use various techniques through which they can
target marketplace. Various marketing strategies are adopted by both organisations through
which they can meet consumer and market demand. Due to changing business environment,
companies operating in same industries give huge competition to other businesses and
competitive rivalry can be reduced through providing attractive offers and using strategic
implementation of such strategies.
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REFERENCES
Books and journals
Amin, M. and Priansah, P., 2019. Marketing Communication Strategy To Improve Tourism
Potential. Budapest International Research and Critics Institute-Journal (BIRCI-
Journal). 2(4). pp.160-66.
Bolshakova, A.V., Shakurov, A. A. and Slanov, V. P., 2020, September. Modern University
Marketing Management: Specific Nature. In IOP Conference Series: Materials Science
and Engineering (Vol. 940, No. 1, p. 012147). IOP Publishing.
Istiqomah, I., Mulyawisdawati, R. A. and Meriyati, M., 2021. THE IMPLEMENTATION OF
SHARIA MARKETING TO INCREASE CUSTOMER SATISFACTION AT
MUAMALAT BANK OF BANTUL BRANCH OFFICE. Islamic Banking: Jurnal
Pemikiran dan Pengembangan Perbankan Syariah. 6(2). pp.179-198.
Lees-Marshment, J., 2019. Marketing scholars and political marketing: the pragmatic and
principled reasons for why marketing academics should research the use of marketing in
the Political Arena. Customer Needs and Solutions. 6(3). pp.41-48.
Palmatier, R. W. and Crecelius, A. T., 2019. The “first principles” of marketing strategy. Ams
Review. 9(1). pp.5-26.
Shulgina, L., 2017. Principles of marketing management of a modern enterprise. World
Scientific News. (72). pp.628-636.
Swanson, S. R., 2019. The defining dozen: undergraduate students preconceived views of
marketing. Marketing Education Review. 29(1). pp.3-16.
Tontuș, H. Ö., 2018. Promotion of health tourism and evaluation of the principles of marketing
of health services. Journal of Multidisciplinary Academic Tourism. 3(1). pp.67-88.
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