Principles of Marketing

This document provides an overview of the principles of marketing and explores the marketing mix strategies of selected brands. It also discusses the STP marketing planning process and highlights the importance of marketing in business.

Principles of Marketing

Executive Summary
Marketing function is crucial and need to be follow by every organisation in an effective
manner. There are some tools that are used to promote products and services at wide level such
as Marketing mix that comprises four crucial elements like product, price, place , promotion.
This framework is helpful to increase in sales as well as profit margins of company.

Table of Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
Analysis of marketing mix strategies of selected brands ..........................................................4
Product-.......................................................................................................................................4
Price-...........................................................................................................................................5
Place-...........................................................................................................................................6
Promotion- ..................................................................................................................................6
TASK2.............................................................................................................................................6
Discuss STP marketing planning process ..................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Marketing is an en essential function of management that helps to promote and advertise
products as well as services being offered by company. Marketing mix is a tool that is essential
to get competitive advantage and inflate sales & profit margins of organisation. It comprises
elements such as product, price, place and promotion (Abedi and Abedini, 2017). Present report
considers on two renowned brands of energy drinks the one is Red bull and other is Lucozade.
Red bull that is one of the renowned brand in beverages based on Australia. Whereas Lucozade
is a energy drink that is manufactured by one of the pharmaceutical company of Japan. The
report comprises a comparison between marketing mix strategies of both of the brands. In
addition STP strategy that are being used by companies to promote their products is also
discussed in the report.
TASK 1
Analysis of marketing mix strategies of selected brands
Marketing mix is a framework that is crucial to promote the products and services of
company. It helps to increase in number of customers and provides competitive edge to
organisation. The important elements in context of red bull and Lucozade are elaborated below:
Product-
It refers to the product and services being offered by company to meet with the needs of
target segment. Here levitt's model is undertake to provide goods to customers as per their needs
and requirement. This model is based on different satisfaction level of end user (Charter, 2017).
The most crucial level is core benefits which provides higher satisfaction to consumers. All
upper levels consist the previous ones. Different level in context of two selected brands are
discussed below:
Core benefit-It is the basic needs as well as want that customers wish to satisfy with
product and service. The core benefit in energy drink is its taste, flavours, texture and many
more. These all benefits are present in Lucozade. Red bull is a well known energy drink which
renders delighted taste to customers as a core benefit.
Generic product-it comprises those benefits that are crucial to fulfil the fundamentals
needs of customers. In context of red bull, it is energy drink that is used to boost the energy level
of consumers. Whereas Lucozade is a beverage that is consider good for health.

Expected product-It refers to the attributes and characteristics that are expected by
consumers from product. Customers of Lucozade wish to get high quality drink in lower price
while red bull is able to meet with the expectations of consumers by providing quality beverages
(Dileep and Mathew, 2017).
Augmented product- It comprises some additional benefits as well as attributes to meet
with the demand of target audience. As per this Lucozade need to add some additional benefits
such as enhance texture, better packaging and many more. While red bull is including extra
features in existing product to enhance as per the desire of customers.
Potential product-It comprises the attributes and additional features that companies
might include in existing product. It is essential to satisfy customers in an efficient manner.
Lucozade need to add some additional features in beverages to meet with the future expectations
of customers.
Lucozade is providing core products to meet with needs of customers. It is an energy
drink that is known for its orange flavoured beverage with sweet taste (Fraser-Arnott, 2020).
While Redbull is on the level of augmented product as it constantly adding some extra
attributes in existing drink to meet with the evolve needs of buyer.
Price-
It is a crucial element of marketing mix strategy. Pricing strategy influences the overall
sale as well as profit margin of company. Pricing strategies that are being used by both of the
brand are mentioned below:
Lucozade energy Red bull
 It is using price penetration strategy
as it offers good quality products on
relatively lower price . With this,
company is able to attract more number
of buyers ( Hanaysha, 2017).
 Lucozade emphasis to keep the price
lower in order to get competitive
advantage and sustain at market place
for a longer period of time.
 While red bull is market leader and offer
premium products to customers. Thus, it
is adopting price premium strategy
that allows company to charge an
additional amount for quality goods.
 It has higher brand value at market place
so buyers are willing to pay premium
price for its products.

Place-
Place refers to the location from where goods and services are provided by company to
target segment. It is an essential element of marketing mix by which organisation make sure to
provide products to end user at right time (Isa, Kelly and Kiumarsi, 2020). In context of red bull,
it has effective distribution system. Company is offering energy drink in nearly 117 countries
and posses strong network of retailers to meet with the needs of end users. Red bull is easily
available at convenient store, supermarkets. Retail stores, clubs and many more. With this, it
ensures to provide ease to buyers to satisfy them. Whereas, Lucozade emphasis to meet with the
demand of customers on timely basis. It is easily accessible by end user through retail stores,
supermarkets and other places. Effective logistics management makes company enable to get
competitive edge.
Promotion-
It refers to advertise product and services to increase in number of customers. There are
ample of methods to promote products such as advertisement, public relations, print media and
many more. Red bull adopts celebrity endorsement to create higher brand value of company at
market place. In addition, it has also wide presence over digital platforms. Further, the brand use
catchy tag lines like “ Red bull gives you wings” to attract more number of buyers. Whereas
Lucozade uses T. V. commercials, newspapers, billboards to promote product among target
segment. It also use digital marketing to enhance its presence. Further, it undertakes personal
selling to communicate with target segment in an efficient manner (Koo, Kim and Kim, 2016)
(Kühn, and Pasquier, 2016).

TASK2
Discuss STP marketing planning process
STP is a marketing strategy which helps to promote products and service in an efficient
manner. It helps to positioned the brand among target audience. STP strategies in context of Red
bull and Lucozade are mentioned below:
Segmenting-
Demographic- Red bull generally offers products to youth between the age group of 16-
30. In addition it is consider as a product that is good for males. The brand is for higher income
group people. While Lucozade is an energy drink that is prefer by males to boost their energy
level.
Psycho graphic- It is prefer by business class people who have good economic status and
personality. While Lucozade, is comes under affordable price range that can be purchased by
middle class people who are conscious about status.
Geographic- Red bull is majorly available in urban and semi urban areas. It is easily
accessible in metro or metropolitan cities. Lucozade is also limited its availability majorly in
urban area as it is offering an energy drink that is generally preferred by people who are loving in
urban areas (Lahtinen, Dietrich and Rundle-Thiele, 2020).
Targeting-Under this, company select a segment that needs to be targeted. There are
ample of factors such as profit margin, competition are consider before selecting target audience.
The main target of red bull is youth who wish to enjoy and boost their energy level. In addition,
it is for premium customers who are willing to pay higher amount for quality product. Whereas
Lucozade is an energy drink that targeted to adults who wish to enhance their physical capability.
Further, it is currently offering beverages to middle income group people.
Positioning-It is the crucial stage of stp strategy. It refers to position the product among
target audience in an efficient manner (Salehzadeh, Jamkhaneh and Doosti, 2019) . Effective
positioning helps to enhance brand value of company at market place. Red bull, is positioned
itself as a premium brand that offers higher quality products. As it is the first brand in this
category thus people has faith on it. In addition, the drink is perceived as luxury that is available
only one some selected outlets. Whereas Lucozade has positioned itself as an energy drink that
comes is affordable. It can be easily purchased by middle income group people to boost their
energy level.

CONCLUSION
With above report, it is concluded that marketing is a crucial business function as it
driven revenue for organization. There are ample of strategies are used by marketers in order to
inflate sales as well profit margins of company. Discussion has been carried out marketing mix
that is a significant tool to promote products and services in market place. With this, organization
can enhance its presence to get competitive advantage. There are some predefined elements of
marketing mix such as product, price, place, promotion. These factors assist company to prepare
appropriate plans. Further, STP framework has been applied to positioned the brand among
target audience.

REFERENCES
Books and Journals
Abedi, G. and Abedini, E., 2017. Prioritizing of marketing mix elements effects on patients’
tendency to the hospital using analytic hierarchy process. International Journal of
Healthcare Management, 10(1), pp.34-41.
Charter, M. ed., 2017. Greener marketing: A responsible approach to business. Routledge.
Dileep, M.R. and Mathew, V., 2017. Marketing of Tourism Industry: Enhancing Services
through Marketing Mix Elements. In Strategic Marketing Management and Tactics in
the Service Industry (pp. 304-329). IGI Global.
Fraser-Arnott, M., 2020. The Marketing Mix in Parliamentary Library Websites. Journal of
Library Administration, pp.1-14.
Hanaysha, J., 2017. An empirical examination of marketing mix elements and customer
perceived value in retail industry. Journal of Entrepreneurship and Business, 5(2), pp.1-
10.
Isa, S.M., Kelly, L. and Kiumarsi, S., 2020. Brand switching through marketing mix: the role of
brand effect on smartphone users. International Journal of Process Management and
Benchmarking, 10(3), pp.419-438.
Koo, K.R., Kim, S.J. and Kim, K.H., 2016. The effects of internal marketing capability on export
marketing strategy, B2B marketing mix and export performance. Journal of Global
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Kühn, R. and Pasquier, M., 2016. Marketing: analyse et stratégie. Schulthess.
Lahtinen, V., Dietrich, T. and Rundle-Thiele, S., 2020. Long live the marketing mix. Testing the
effectiveness of the commercial marketing mix in a social marketing context. Journal of
Social Marketing.
Salehzadeh, R., Jamkhaneh, H.B. and Doosti, S., 2019. The effects of internal marketing mix on
performance in a healthcare context. International Journal of Business Innovation and
Research, 18(2), pp.167-186.