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Britvic Case Study

MARKETING CONCEPT A business that has a marketing orientation sees the needs of customers and consumers as vital. As it develops and markets products to meet those demands, certain structural characteristics become apparent in the business. 1. 2. 3. Identifying customer/consumer needs and wants by conducting marketing research. Developing products to meet customer/consumer needs and wants utilising research and development. Making the product available to customers at the right time and place through distribution.

Ralph Chapman identified through research the need of his poorest customers for an affordable source of Vitamin C he was then able to develop a solution to bottle his fruit juices to enable them to stay fresher for longer and providing a successful solution to the market. The small glass bottles provided an easy option for transportation and distribution which contributes to keeping the products cost effective. Britvic distribute their products to customers at the the key time and place by providing a wide variety of products to the market and by supplying vending machines at leisure centres they satisfy both the needs of the customer as well as a captive audience for suitable products. The company are constantly developing products and researching the market to meet the changing tastes and demands of consumers. MICRO ENVIRONMENT A Micro environment relates to the internal environment of an organisation which they can exercise control over to an extent. Organisations or individuals who directly or indirectly affect the activities of the organisation include, competitors, customers, distribution channel, suppliers and the general public. MACRO ENVIRONMENT A Macro environment is based on the external factors of an organisation that have a direct or indirect influence on its ability to produce, promote and sell to customer. PEST analysis stands for Political regulatory bodies, government policy, product safety Economic income, weather, transportation, distribution Social lifestyle trends, health issues, advertising Technological transportation, communication, IT, manufacturing process This describes a framework to review a strategy and direction of a company. BRITVIC PEST ANALYSIS The PEST analysis for Britvic includes: POLITICAL Political factors concerning the rules on advertising food and drink to children under 16 which is banned from television campaigns presents a problem. Avril Anderson 10112976 1

ECONOMIC Economic factors include income and unemployment which has led to an economic downturn in the soft drinks market, the poor summer weather also impacted on sales within the market which could lead to problems with the source of ingredients as crop yield will be lower for fruits, sugar etc. therefore increasing the price as demand for these products would be high and supply low. SOCIAL Social factors include lifestyle trends, introducing the variant Tango Clear to attract older consumers to the market reflecting the changes in consumer tastes and health awareness. TECHNOLOGICAL Technological factors, tapping into the market by the use of vending machines in sports centres, producing the juices in small glass bottles ensuring easy transportation and communication with the market by introducing competitions to reach the consumer. MARKET RESEARCH AND INFORMATION Market research is the gathering of information from markets or customers and is a critical component to an organisation as it identifies the products which are likely to be successful in the market place, and suggest options for introducing new products or entering new markets, the need of customers, niches in the market place, market segments, identify new trends, and determines competitors. Market information gathered through market research is used to support decision making, monitoring and control, measures performance and is key in identifying new business opportunities. PRIMARY RESEARCH This is information that does not already exist which is free from bias, can be tracked to the original source, it is reliable and useful but usually expensive to carry out. This can be achieved through personal interviews, postal and telephone surveys or focus groups. SECONDARY RESEARCH This is information that already exists it may not be accurate or reliable and not prove ideal for the purpose required therefore it is cheaper than primary. This information can be found in newspapers, magazines, journals and also from previous research reports. It can be useful to determine what is already known and can help identify what new information is required. IMPORTANCE OF MARKET RESEARCH TO BRITVIC Market research and the information gathered are important to Britvic to determine the products that are most likely to be successful in the market place, to identify the need for new product development according to the change in trend and demand from customers and is a key factor in gaining an advantage over competitors. To launch Tango clear Britvic would have carried out market research to determine the target consumer, which flavours would be appealing and also the design of the packaging this information would influence the decision to launch the new product. Avril Anderson 10112976 2

METHODS OF MARKET RESEARCH The purpose of any market research project is to achieve an increased understanding of the subject matter. Market Research is either quantitative, qualitative, or a combination of both. Qualitative and quantitative market research methods each provide different insights into customer behaviour. Normally, research results are more useful when the two methods are combined. QUANTITATIVE Quantitative research is about asking people for their opinions in a structured way so that you can produce hard facts and statistics. To achieve reliable results it is important to survey people in fairly large numbers and to make sure they are a representative sample of your target market. Quantitative market research typically includes customer surveys and questionnaires. These can be conducted face-to-face with a clipboard and pen, over the telephone, via post or email, online or via your website. Survey questions have to be carefully considered so that the results will provide meaningful data. This research can tell if there is a market for a product, if people are aware of it, are interested in it, what their buying habits are and the identify the target market. QUALITATIVE Qualitative research is about finding out not just what people think but why they think it. Its about getting people to talk about their opinions so you can understand their motivations and feelings. Face-to-face interviews and group discussions are the best ways to collect this information. Qualitative research can be valuable when developing new products to test reactions. This research can tell what customers think and feel about a product, how they choose between different products or manufacturers, the influence that branding and packaging has, how the price affects their decision and whether there is a demand for a new product. COLLECTION AND USE OF RESEARCH TO BRITVIC Britvic may collect quantitative information by survey either by post or consumer forums via their website to ascertain the target market for their new product Tango clear, this information would provide age, what they drink and how much they drink. Britvic may collect qualitative information by interviews or focus groups to find out more in depth information from consumers, for Tango clear this would provide information on what consumers are looking for in a product, how it should be packaged, what makes them choose a product over another, desired flavours and brand awareness. MARKET SEGMENTATION Market segmentation is the division of the market into groups with similar characteristics and needs, this process identifies a group of people with needs that can be met with one product. The key segments are Demographic, this identifies factors such as age, occupation, income and lifestyle. Behaviour, provides information on buying patterns, usage and brand loyalty Avril Anderson 10112976 3

Geographic, analyses where people live, the climate By identifying a segment using these methods of research an organisation can meet the needs of consumers by providing products that are more tailored to suit those needs and communicating the relevant information to the right people, this would make an organisation more effective than its competitors and consumers would be more willing to pay for a product or good that is a closer match to their needs. TARGETING When the market has been divided into segments it gives a clearer idea of which segment is the best target to pursue for the organisation, the choices made could be the most profitable or possibly a gap identified in the market. From this advertising campaigns can be tailored to target the chosen segment. BENEFITS OF MARKET SEGMENTATION AND TARGETING TO BRITVIC By analysing information such as age, gender, lifestyles, usage and buying patterns Britvic have been able to identify the needs and wants of the consumer and benefit by being able to target a wide range of people by offering products to suit these segments. Fruit shoot is aimed at children whereas Tango is targeted at teenagers, by segmenting the market Britvic have found a market in the older consumer for their new product Tango clear, they have also identified the health conscious/sport lifestyles with Drench and have recognised the market place within leisure centres all through market segmentation. MARKETING THEORY - THE 4P'S The marketing theory consists of what is known as the 4p's, through this companies can create successful products with the correct marketing mix which lead to the product being sold in the right place at the right price to the right person at the right time. The 4p's are: Product Price Place Promotion PRODUCT This is important for a business as the product it produces has to attract the consumer and satisfy the need or want of consumers, it relates to branding, functionality, packaging, styling, safety, warranty, quality and repairs

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PRICE This is how much a consumer will pay for a product or service, it is important in the marketing mix as it has to attract the customer but also be priced to cover company costs and produce profit, it relates to pricing strategy, suggested price, discounts, price flexibility and discrimination. PLACE This is important to make a product available to the consumer, it has to be affordable for the company and accessible to the consumer, it relates to distribution channels and centres, warehousing, coverage of the market and transportation. PROMOTION Communication and information are key in making a consumer aware of a product, this can be achieved through advertising, sales promotion, sponsorship, strategy and marketing. FACTORS AFFECTING CHOICE FOR BRITVIC PRODUCT MIX AND INDIVIDUAL PRODUCT The main factors for Britvic to consider are the demand for products, consumer behaviour, income and competitor products. Developing new products that give something more to the customer than their competitor is also an important factor. Britvic should be aware of consumer behaviour and incorporate this into their products, i.e. health awareness and government legislation would affect the products Britvic offer, providing a sugar free alternative or low calorie option would be a choice to factor into the production line DISTRIBUTION CHANNELS Technology and equipment advances within the industry, the method of packaging and ensuring the production facilities can cope with these changes would be a considerable factor for Britvic, this would make transportation, distribution and warehousing more cost effective to both the company and the consumer and ensure Britvic stays competitive within the industry. Distribution is key for Britvic and when introducing new products to the market working closely with their outlets such as superstores, pubs and restaurants is key to reaching the target market.

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PRICING METHODS Pricing is a vital element for Britvic, the factors affecting this are, consumer income and spending habits, competitors in the market and productivity level. PROMOTION METHODS A factor affecting promotion is government legislation, the way in which Britvic have been able to advertise to children via television led to alternative methods through radio, poster and newspaper advertisements. Seasons are a further factor and promoting drinks to ensure year round sales by introducing limited edition seasonal flavours such as winter berry in the J20 range for the Christmas season and strawberries and cream to the Robinson range for Wimbledon. IMPORTANCE OF MARKETING A SERVICE In addition to the 4p's there are a further 3 elements which must be considered when providing a service as the characteristics differ from those of a product. PROCESS This is the system that ensures delivery of the service. All services require a clear defined method of delivery, this will ensure consistency and quality of the service as everyone involved will follow the process and know what to do, why they do it and how to do it. PEOPLE People are an essential ingredient in the provision of a service, customers make judgements about the service based on the people within an organisation representing it as people are part of the service that customers can see and interact with. Recruiting the correct staff is crucial to create a competitive advantage. People within an organisation require key skills, aptitude, people skills and a good knowledge within the field to produce a quality service to the customer. PHYSICAL ENVIRONMENT This is the part of the service that customers can see, this could be anything from written documents on a guarantee to the clean sheets on a bed in a hotel room. Customers can make judgement of a service from the physical evidence therefore it is crucial to provide quality and assurances to establish a good reputation and remain competitive. ADAPTATION CONDITIONS OF MARKET MIX FOR BRITVIC IN CHANGING MARKET

RECYCLING (government legislation) The government frequently introduce legislations for companies to meet, if say they decided to reduce wastage and encourage recycling as mandatory for companies then Britvic would have to look at the packaging of their product and find ways in which to incorporate a cost effective method in production, distribution, introducing an incentive scheme by bringing back the deposit return bottles to encourage customers to recycle for reward would be an option. ECONOMIC DOWNTURN Avril Anderson 10112976 6

Britvic would possibly adapt their market mix according to consumer spending and income, in an economic downturn people tend to spend less on non essential goods, for instance people would be more inclined to use tap water than buy bottled water, if Britvic could consider introducing new flavours to the Robinson range to meet the demand and changing habits of the consumer due to less spending. AGEING POPULATION Younger generations are the target customers for Britvic and as they age keeping them in the market for soft drinks may require some adaptation to the market mix, Britvic have already tested the market with the introduction of Tango Clear targeting the older customer, extending this line of production.

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