CW1 BUSINESS REPORT

STUDENT-ELENA GOLOGAN

GROUP-H1

BNU-22145076

MG412-PRINCIPLES OF MARKETING

CW1-THE 4P/MARKETING MIX

TUTOR-SIAN JACKSON

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 Executive Summary

The significance of marketing cannot be overstated as it is crucial for a business to

establish a stable position in the fiercely competitive market. The primary factor
contributing to this phenomenon is the intense competition prevalent in the market.
Failure to implement effective marketing strategies may result in a loss of market
share for companies. The present investigation is centred on the comparative
analysis of the marketing strategies employed by two distinct corporations.

The entities refer to Lucozade Energy and the Red Bull Energy Drink Company.
Lucozade is a beverage producer that was established in the United Kingdom in
1927 and offers a diverse range of beverages. The Red Bull energy drink, marketed
by Red Bull GmbH, was first introduced in Austria in 1987. In 2019, the number of
consumers of Lucozade's energy drink brands in Great Britain was 3744 (in 000s),
as reported by the Energy Drink Brands of Lucozade in Great Britain 2013-2019 by
Number of Users in 2019. The present analysis aims to examine the distinctions in
the target markets of the two companies. The ensuing discourse will centre on a
comparative analysis of the marketing mix employed by both companies.

According to the, the fundamental concept of marketing is imperative for the

expansion of the organisation.
The primary objective of the principles is to devise strategies for the organisation to
enhance its profitability by generating and promoting the sales of its products. The
organisation employs marketing strategies to effectively leverage growth
opportunities. The principle of marketing posits that the fundamental elements of
place, promotion, price, and product are essential components for organisational
success. These four elements are integral to driving the operations of a company.

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 Table of Contents

Introduction…………………………………………………………………………….….…4

Target Market………………………………………………………………………….…….4

Product…………………………………………………………………………………….…6

Price……………………………………………………………………………………….…6

Place…………………………………………………………………………………………7

Promotion……………………………………………………………………………………7

Conclusion…………………………………………………………………………………..8

Recommendation………………………………………………………………………..…9

References……………………………………………………………………………....….9

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Introduction
The principle of marketing can be defined as a set of commonly accepted marketing
concepts and strategies that companies employ to achieve effective marketing
outcomes. Their product promotion strategies are based on principles.

Companies utilise marketing principles as an efficient means of promoting their

goods and services. Numerous enterprises may adhere to the marketing mix
framework, commonly known as the 4Ps of marketing. The 4Ps, namely product,
place, price, and promotion, are recognised as fundamental elements in the field of
marketing. This concept is sometimes referred to as a marketing matrix. Marketing is
commonly understood as a collection of actions and activities that are directed
towards customers, clients, partners, and other relevant stakeholders. The group of
four activities pertains to creativity, which is characterised as the act of merging with
suppliers and customers to generate products or services that possess value. The
act of communication involves both the provision of product descriptions and the
acquisition of knowledge from customers. The objective is to provide stand delivery
services to customers in a manner that maximises the value of the organisation. The
act of exchanging involves giving up one’s original value in return for something
offered by another party. Various perspectives exist on the components of marketing,
with the conventional approach being the 4Ps model as posited by Agu (2018).

According to the text provided, an analysis has been conducted on two

organisations, namely Lucozade Energy and Red Bull, both of which operate in the
soft drink manufacturing industry. The analysis was conducted based on the
principles of marketing. What strategies do organisations employ to maximise their
profits?

Target Market
Lucozade is a long-standing soft drink manufacturing company that prioritises quality
in its products. It has been involved in the production of soft drinks for a significant
period. The chosen organisation possesses distinct marketing principles that
facilitate product promotion and revenue maximisation. The product’s target market
is defined by the category of individuals who are responsible for its consumption.

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Demographic factors such as age, gender, and socioeconomic status are important
considerations when identifying a target market. The company’s target demographic
comprises of young men aged 16 to 30. The organization’s brand extends beyond
the sports performance market to encompass a wider audience. As a result, a
substantial budget has been allocated towards establishing an outdoor presence.
This decision was made because the target audience is known for their exposure to
a significant amount of television advertisements and their frequent use of mobile
devices. Red Bull employs similar marketing strategies; however, the company
specifically focuses on young, urban males who either live on the edge or aspire to
do so.
The company focuses on targeting individuals who possess a strong passion for
extreme sports and engaging recreational pursuits. Young individuals are often eager
to discover novel products that enable them to establish a connection with their
interests. As such, Red Bull and Lucozade have implemented strategies that
prioritise the youth demographic. The individuals exhibit a strong sense of
enthusiasm and zeal, while both organisations embrace the potential of youth.
Through their advertisements, they convey the notion that the company not only
fosters passion but also provides a platform to pursue it (Susanti & Gunawan, 2019).

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 Fig 1. Target Market (sources online 2022)

Product
The product is a crucial element for a company. In order to attract customers, a
product must possess unique features or characteristics that compel them to make a
purchase. Additionally, it is important to establish a solid framework for building
customer interest and engagement. The company possesses the opportunity to
generate a novel design for their product, thereby increasing its market proximity and
enhancing its appeal to customers through the introduction of new flavours. As
evidenced by the context, Lucozade and Red Bull are specifically targeting a youthful
demographic, necessitating the creation of a product shape that exudes a sporty and
fashionable aesthetic, thereby inspiring consumers to purchase and consume the
product. The appeal of a product is contingent upon its colour and shape. If the
product is intended for a youthful demographic, it is imperative that the colour and
shape are designed in a manner that is visually appealing and captivating to the
target audience. This will effectively generate interest and draw the attention of the
intended demographic. Red Bull employs a consistent approach in its product
development by offering a variety of flavours to cater to diverse consumer
preferences (Farris et al., 2016).

Price
The quality of a company’s products is determined by its pricing strategies, which
involve offering a range of products at varying price points. Each product possesses
unique qualities and specifications, leading companies to establish varying prices for
their respective products. Both organisations possess a variety of products and
adhere to competitive pricing strategies. The company has implemented a pricing
strategy that involves reducing the cost of certain products while increasing the cost
of others. Lucozade initially entered the market with a base price and subsequently
adjusted their pricing strategies after gaining a significant consumer base. This is a
common practise when introducing new products, as a new price point is often
established. According to Gardiner and Scott (2018), Red Bull follows a similar
approach by implementing various pricing strategies. The company initially
introduces its product at a higher price point and subsequently lowers it over time.

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Place
Location is a significant determinant as it establishes a framework of
operations, such as the availability of products or a specific site where the
product can be found. The market is the location where all products are
available for purchase. The establishment maintains a designated retail space
where various goods, including the sought-after item, are stocked and made
available for purchase. Lucozade and Red Bull each have their own distinct
distribution channels, with established suppliers and retailers who procure
and distribute the products to consumers. Red Bull initially established its
presence in urban areas but has since expanded into rural regions by
leveraging its supplier and distribution channels, ultimately resulting in the
establishment of its own retail outlets. Currently, Lucozade’s customer base is
smaller than that of Red Bull. The distribution of Lucozade products is limited
to a fixed number of shops and stores. According to Clapp et al. (2019), Red
Bull has a restricted reach in certain regions, but has managed to expand its
reach through production efforts.

Promotion
Promotion refers to the range of activities that companies engage in to promote their
products in the market, utilising various tools such as advertisements, television
commercials, posters, headlines, and discount vouchers. Promotional tools serve to
enhance brand recognition and drive sales by offering price reductions and
discounts. The objective is to develop a strategic plan to persuade consumers that
the product is of high value, despite being offered at a lower price point due to a
specific occasion or circumstance. Lucozade employs a diverse range of promotional
strategies, including advertising, promotional campaigns, and direct selling, to
promote their product.
Another approach involves advertising through mass media channels, such as
television commercials, newspapers, and magazines. Red Bull has implemented
specific marketing strategies, such as the utilisation of the slogan “Red Bull gives

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you wings.” The author emphasises the notion that their product offers individuals the
necessary vitality or vigour to pursue their desired endeavours. Both organisations
are utilising innovative strategies to expand their market reach and attract a larger
customer base for their respective products (Stocchi & Fuller, 2017).

Fig 2. Marketing Mix (sources online,2021)

Conclusion
The ultimate finding is that marketing is a crucial and efficacious strategy that an
organisation must adopt to attain a competitive stance in the market. The primary
rationale behind this is that effective utilisation of resources enables a company to
enhance its ability to attract a larger consumer base. The analysis revealed that the
utilisation of STP is imperative for identifying the target demographic and
determining the optimal positioning of a company’s products and services within the
market.

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Ultimately, it was observed that the marketing mix holds significant importance in
determining a company’s strategic approach.

Recommendations
A significant suggestion for Lucozade energy drink is to prioritise online sales due to
the prevailing pandemic, which has resulted in a surge in online shopping among the
populace. Furthermore, a significant suggestion for the company is to prioritise
innovation in their energy drink product to enhance its appeal to consumers.

Conversely, it is recommended that Red Bull energy drink conduct periodic

competitor analyses. One significant factor is that conducting an analysis of
competitors' operations can enhance the likelihood of attaining a competitive stance
within the market. Another significant recommendation is to adopt penetration
pricing, which can aid in market penetration.

References
Agu, A.G., 2018. Quality of Marketing Education and the Performance of
Marketing Graduates in Nigeria. Journal of Economics and Management Sciences,
1(1), pp. p237-p237.

Clapp and et. al., 2019. The top five selling UK energy drinks: implications for
dental and general health. British dental journal, 226(7), pp.493-497.

Datta, H., Ailawadi, K.L. and Van Heerde, H.J., 2017. How well does consumer-
based brand equity align with sales-based brand equity and marketing-mix
response? Journal of Marketing. 81(3). pp.1-20.

Farris and et. al., 2016. Red Bull (a). Red Bull (a) (April 14, 2016). Darden Case
No. UVA-M0663.

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 Gardiner, S. and Scott, N., 2018. Destination Innovation Matrix: A framework for
new tourism experience and market development. Journal of Destination Marketing
& Management, 10, pp.122-131.

Išoraitė, M., 2016. Marketing mixes theoretical aspects. International Journal of

Research– Granthaalayah. 4(6). pp.25-37

Massingham, P.R. and Pomering, A.A., 2017. Introducing Knowledge

Management to the Marketing Mix.

Ramani, N. and Srinivasan, R., 2019. Effects of Liberalization on Incumbent

Firms’ Marketing Mix Responses and Performance: Evidence from a Quasi-
Experiment. Journal of Marketing. 83(5). pp.97-114.

Stocchi, L. and Fuller, R., 2017. A comparison of brand equity strength across
consumer segments and markets. Journal of Product & Brand Management.

Susanti, S. and Gunawan, W., 2019. Integrated Marketing Communication Using

social media in Promoting Embroidery Craft of Tasikmalaya. International Journal of
Psychosocial Rehabilitation, 23(2).

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