Principles of Marketing: A Report Analyzing Red Bull & Lucozade

This report examines the application of marketing principles by Red Bull and Lucozade, two prominent energy drink companies. It delves into their target market profiles, considering factors like age, gender, income, and lifestyle. The analysis includes Levitt's model of brand stratification, brand personality using Aaker's framework, pricing strategies, and distribution channel management. The report highlights the importance of understanding customer expectations, effective packaging, and strategic pricing for achieving success in the competitive energy drink market. It concludes that a strong marketing strategy, guided by established principles, is essential for long-term growth and profitability, emphasizing the significance of the marketing mix in creating a unique selling proposition.

Principles of marketing

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................4
Target market profile(age, gender, income, social class, level of education, lifestyles and TV,
hobbies).......................................................................................................................................4
Product(Levitt's model of brand, two brands and their packaging, colour scheme) Brand
values(Aaker's brand personality framework)............................................................................5
Pricing strategy analysis of both brands.....................................................................................6
Place (distribution and channel management, outlets)................................................................7
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
International marketing and its principles are helpful in development of a company by
increasing sales of products and services (Bonaparte, 2019). In the global business, the
international marketing is termed as major economic activity that helps a business to serve target
and general customers. In the marketing department of a business, it is major role of staff to
facilitate sales development for long term success of the business. In this report example of two
energy drinks company is taken into consideration for better understanding of dimensions of
marketing. The first one is Red Bull energy drink company is taken into consideration which is
headquartered in Austria and was founded in the year 1984. The next is Lucozade energy drink
is taken into account which is headquartered in UK and was founded in the year 1927 .

MAIN BODY
Target market profile(age, gender, income, social class, level of education, lifestyles and TV,
hobbies)
In order to gain long term success at the marketplace, it is important for a company to
develop target market for the customers. This will help the companies to increase the sales within
specific period of time and also helps in fulfilment of demand of different customers. The target
market profile for Red Bull energy drink and Locuzade energy drink is mainly youth oriented
market. These companies focus on age group between 15 to 30, as the youth mainly consumes
energy drinks in a large quantity. The gender of customers is also important for both the
companies and the gender focus of the energy drinks is on Men and boys. This segment of
customers is important to be identified by both the companies in order to increase the sales and
revenue of the business firm (Hajjat, 2021). The lifestyle trends of customers also matters a lot
for the company in order to formulate effective marketing policy and plan. The TV programmes
the youth watch related to adventure and high lifestyle trends and the company should advertise
related to the same trends. The target market for the company is associated with the trends which
are connected with lifestyles of youth for selling energy drink.
Illustration 1: Red Bull energy drink, 2021

Product(Levitt's model of brand, two brands and their packaging, colour scheme) Brand
values(Aaker's brand personality framework)
Levitt's model of brand
This is universally adopted model in the field of marketing which is used by Red Bull and
Lucozade energy drink company. This model is based on the idea of a company's product ad
stratification of level and the second level of this model includes basic attributes plus all the
necessary and desired characteristics in a product that customers generally expect. In the context
of Red Bull and Lucozade energy drink customers expect a good amount of energy and normal
level of sugar as an ingredient. In this model there is a third level which the augmented products
exceeds customer expectations which increases turnover of a business firm (Sabaghinejad,
2018). This model is used by many different companies to formulate desired product in the
marketplace and also helps in fulfilment of demands and needs of different customers.
Illustration 2: Lucozade energy drink, 2021

Packaging
The packaging of a product matters a lot for a company, as it includes designed
packaging and capacity to remain long lasting in different climatic conditions. It is essential for
Red Bull energy and Lucozade energy drink to formulate effective and attractive packaging of
products for the development of product in the marketplace. Packaging is done by production
management of a business which requires attention of marketing management in order to
formulate effectively packed product. In order to formulate effective packaging of products and
services, companies should also take feedback or advice from different customers and
employees.
Aakers brand personality framework
This model plays an important role in development of the brand image of a product,
which includes five dimensions of brand personality. The first one is sincerity, which states that
a company should maintain utmost discipline in developing the desired brand image in market.
The company should also formulate competency approach in developing brand image and should
produce distinct products (Swanson, 2018). The next step in this model develops excitement of a
company to develop product brand image in a short span of time. This model also includes the
application of sophistication in the brand image which makes product distinct at the marketplace.
In the last stage business includes development of brand toughness which is able to identify
different objectives and aims related to brand development.
Pricing strategy analysis of both brands
The pricing strategy is a major decision and evaluation of value of a product which
makes it unique at the marketplace. Red Bull and Lucozade energy drink should take into
account effective and reasonable pricing strategy in order to increase the sales of company.
Pricing strategy of Red Bull and Lucozade energy is decided by professional top level
management and strategic management in order to gain competency edge. Pricing strategy of a
company is essential to be developed by taking feedback from different employees and
customers (Taylor, 2020). The pricing strategy, is also helpful in attracting target customers for
the business entity. Red Bull energy drinks generally keeps and sets target market and then
develops pricing strategy on the basis of market trends. The Lucozade energy drinks on the other
hand, takes into account feedback from target customers and board of directors to formulate
price of different products.

Place (distribution and channel management, outlets)
In the functioning of a company at the marketplace, the distribution channels play a
major role as they play crucial role in supplying products to the customers. The place is the
geographical location selected by a business to sell different products and services to customers.
In order to decide appropriate channel, the management of Red Bull energy drink takes into
account advice of logistics and supply chain management (von, 2020). On the other hand,
Lucozade energy drink prefers professional approach which is important for supply chain
management. The strategy which is adopted by Red Bull energy drink takes into account use of
global standards in order to maintain its perishable energy drink in different countries.
The major distribution channels Red Bull and Lucozade can adopt are:
 Retailers
 Whole sale
 Internet( Online Selling)
Illustration 3: Types of Distribution channels, 2021

The Red Bull and Lucozade companies should perform following ways and methods to
develop its channel management :
 Supervision and control- There is a need of effective supervision and control in the
operations of a company while maintaining its supply chain management. This will help
the company to maintain its distribution channels in a precise manner and will help in
growth and expansion. It is moral responsibility of the marketing management to also use
effective vigilance and supervision methods for reaching the target customers.
 Database management- In the development of a business entity's supply chain
management it is very much important to maintain database management. The Red Bull
energy drink can take into account information and technology in order to maintain big
data related to customers. This will also support the company to store data of target
customers in a specific period of time. The database management is an important task
which is also followed by Lucozade energy drink in order to maintain effective channels
of marketing. The database management also plays an important role in understanding
the key trends of company in the marketplace by identification of potential functions and
tasks.
 Strategic management for distribution- In order to develop effective chain related to
channel distribution and product supply, it is very much essential to take assistance of
strategic management. The strategic management will help Red Bull and Lucozade
energy drink to develop perfect distribution plan for selling products and services. The
strategic management will also help the company to distribute products to target
customers at formulated prices in order to develop pricing strategy which helps in
increasing profitability of the company (Wanjiku Ndungu, 2018). The strategic
management of both energy drinks are professional and skilled which provides effective
distribution solutions to both the business firms. In the recent times, most of the
successful international companies also takes advice of top level management and board
of directors to formulate major decisions related to supply chain.

CONCLUSION
From the above stated report it can be concluded that in the overall development of
marketing functions, marketing principles plays a crucial role. In the major business functions
like marketing, it is compulsory for a company to take advice of top and strategic management
for performing better marketing operations. This project concludes that in the long run it is
compulsory for a company to develop marketing strategy with the help of universally marketing
principles in order to gain desired success in the marketplace. This project also concludes the
application of marketing mix in a business is most important for a business to develop effective
strategy for selling products with unique selling preposition.

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.
Hajjat, F.M., 2021. Using marketing for good: An experiential project on cause-related
marketing in a principles course. Journal of Education for Business, 96(7), pp.461-467.
Sabaghinejad, Z., Hosseinizadeh, F., and Farajpahlou, A., 2018. Retracted: A survey of
jundishapur medical sciences university students viewpoints in Ahvaz considering the effective
components in the marketing process of libraries based on the principles of marketing mix (9P's
model). Journal of Fundamental and Applied Sciences, 10(6S).
Swanson, S.R. and LaLuzerne, M., 2018. Perceptions of Marketing: An Analysis of Differences
and Commonalities Among Business and Non-Business Majors.
Taylor, R., 2020. Reframing Delivery of Principles of Marketing: Moving Bored Students to
Board Room Employer-Needed Kick-Ass Skilled Grads. Academy of Business Research
Journal, 2, pp.52-66.
von Freymann, J.W. and Cuffe, B.P., 2020. Can Higher-Order Active Learning Modalities
Improve Student Learning Outcomes in a Marketing Principles Class?. Journal of the Academy
of Business Education, 21.
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.