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Marketing: An Introduction
Extended responses to questions to a case study of Britvic Ltd, UK.
Part 1 Identify three key characteristics of the marketing concept
Part 2 Explain Britvic’s micro and macro environment
Part 3 Explain why market research and the information gathered are important to an organization like Britvic
Part 4 Explain how Britvic might collect and use market research information. Include one quantitative and one qualitative research technique in your response
Part 5 Explain the process of market segmentation and targeting and the benefits of segmentation and targeting to Britvic
Part 6 Explain marketing theory in relation to each of the 4 Ps. Explain the factors that would affect how Britvic might decide on their choice of each of these items
- Product mix and individual products
- Distribution channels
- Pricing methods
- Promotional methods.
Part 7 In marketing a service, explain the importance of:
- Physical environment
Part 8 Explain how Britvic might adapt their marketing mix in response to three possible changes in market conditions
The first part is find three characteristics that can make company gain advantages in the market. The second part is explain micro and macro environment list some example and write the influence of them. The third part is explain the impotance of market research and what does it affect to company’s business. The fourth part is explain the methods of collect market research information and list a quantitative and qualitative research technique. The fifth part is analysis the market segmentation and targeting of Britvic. The sixth part is explain the 4 Ps and how it affect Britvic makes decision. The seventh part is list importance of people, process and physical environment. The last part is list three suggestions that can help Britvic to adopt the market changes.
Part 1 Identify three key characteristics of the marketing concept.
Marketing concept is a person or organization in order to achieve the target in the relevant public to push its own behavior and use all the means and methods. (businessdictionary.com)
- Satisfy customers then earn profit.
Customers should be satisfied because the profit that company earned are from customers purchase. If they are interest in company’s product, they will buy it and recommend to others such as friends and families. Company must make their products enough good to attract customers purchase, which can let customers do not buy competitor’s products. This can make company expand the market share and increase the income. In this case study, Britvic has realised that Great Depression in the UK makes a lot of people lost their job and soaring prices. This means many people cannot afford the source of Vitamin C, so this is a big market demand that poorest customers could be satisfied. Ralph Chapman who is owner of Britvic found a way to bottle fruit juices so that they stayed fresh for longer without the addition of preservatives. This juices were sold in a small bottle which make it easy to transportation and reduce the production cost. So this measure can let Britvic earn profit.
- All activities must make customers as center.
Most of Companies are based on customer’s needs and attract customers to buy their products and services. So company’s activities are also need cater to customer’s need. Britvic use a small glass bottles to packaging juice which can make transportation more convenient and reduce unnecessary loss. Britvic plan to launch a Tango variant called Tango Clear with no added sugar, it could attract old customers. And they make a television advertising of food and drink to attract young customers who are under 16 years old.
- The function of all department in order to meet customer’s demand.
There are many department in Britvic which has different tasks. In this case study, the marketing department should make a marketing research to learn what does customers like so they could produce the drinks which are customers most like. Human resources department could training new talent employees to make them know the characteristics of drinks which satisfy customers hobby and needs.
Part 2 Explain Britvic’s micro and macro environment.
Marketing macro environment refers to chose who have caused enterprise marketing opportunities and environmental threats of external factors. These factors including population environment, economic environment, natural environment, technology environment, legal environment, social and culture environment. These main social power is the enterprise uncontrollable variables. (businessdictionary.com)
Marketing micro environment refers to the enterprise’s ability to serve its customers a direct impact of various forces, including the enterprise itself and its marketing intermediary, markets, customers, competitors and all of the public. (businessdictionary.com)
In this case, the factors of micro environment as follows:
- There are growing numbers of competitors. They produce similar product with Britvic so Britvic should produce a better drinks to attract customers to purchase their product. The presence of these competitors will make Britvic become more stronger. And it will also promote the development of this industry.
- Suppliers is a important factor of micro environment. Britvic need suppliers to provide materials to produce drinks. A good suppliers could provide good quality materials to Britvic in time which can let Britvic produce better quality of drinks to attract customers to buy. This can let Britvic earn more money to buy better quality of materials from suppliers.
The factors of macro environment as follows:
- Technology environment is a important factor of macro environment that can influence company. In this case study, modern glass manufacturing process can produce small glass bottles to packaging drinks which can make it easy to transport and reduce cost. It also could provide a better experience of drinking to customers.
- Economic environment is a important factor of macro environment that can influence company’s development direction. After the Great Depression in the UK, there are great numbers of customers want to purchase Vitamin C drinks so Britvic provide fruit juice which are packaging in small glass bottles. It is cheaper than previous juice drinks, which can get more sales to earn money.
- Population environment is a important factor of macro environment that can promote company to create a new product. In this case study, more and more old customers are pay attention to their health so Britvic provide a drink that have less sugar to cater to old customers.
Part 3 Explain why market research and the information gathered are important to an organization like Britvic.
The main form of market research is collecting information. This can help companies make the right market for their business operations and decisions, whether online or offline. (learningmarketing.com)
- Marketing research could be used to collect informations to analysis what does customers like and their demand. For example, what kind of packing can make customers more convenient to carry, how much drinks per bottle are enough to customers.
- From the marketing research, company can learn more information about their competitors and environment. Britvic can make marketing research to account the sales of drinks between themselves and competitors which can make a plan to beat their competitors in the market. These informations can also help Britvic to allocated resources into programs which are most needed.
- The Britvic also be aware of the latest population through marketing research and customer demand. New markets may have different needs, rather than the former Britvic has reached the market. Marketing research can effectively identify customers needs to avoid unnecessary loss of wrong decision. Therefore, it can also help companies to reduce potential risks.
Part 4 Explain how Britvic might collect and use market research information. Include one quantitative and one qualitative research technique in your response.
There are two main methods for Britvic which are Qualitative research and Quantitative research.
- Qualitative research refers to the perspective of qualitative, the object of study for scientific abstract and theoretical analysis, conceptual undetstanding and not the object of study to determine the amount. (businessdictionary.com)
Britvic could use focus group of qualitative research to collect information. Interviewee are randomly selected and their age is between ten to sixty years old. The question is “What do you think your favorite drink of Britvic?”. This can get a conclusion that which drinks are customers most like. Then Britvic could pumps money and human resources to develop this drinks .
- Quantitative research is a certain number of representative samples, enclosed questionnaire visit, then the survey data of computer in the school, sorting and analysis and reporting methods. (businessdictionary.com)
Britvic could use questionnaire to collect information which from 100 peoole. The questionnaire’s question could be “ Is that the current beverage market fit your taste?”. Britvic can get informations from these people that what the shortcoming of current beverage market. Then Btitvic could catch the opportunity to develop new drinks to preempt the untapped market.
Part 5 Explain the process of market segmentation and targeting and the benefits of segmentation and targeting to Britvic.
Market segmentation and targeting
According to the disire and demand caused by too large enterprise difficult to service the overall market divided into several sub markets with common characteristics, in the same market segment of consumers was known as the target customers, the target market of customers relative to mass market is the focus. Market segmentation is the marketing through market research, based on the needs and desires of consumers to purchase and purchasing habits in areas such as the difference between a product to market as a whole is divided into a number of consumer markets group classification process. (learningmarketing.com)
Steps for market segmentation
- Define the market range
This step means that a company should confirm whom that they want sell products to.
- Determine the segmentation variables
This step means that find the factors which can influence market such as geographical factors and psychological factors.
- Collect and analyze data
This step is important because company could learn what does customers like which has different needs.
- Market segmentation
This step that company can segments their market into different parts which can satisfy different customers.
- Evaluate market segmentation
This step after market segmentation is necessary because company needs to know whether they did well on market segmentation.
Market is based on the difference of the customer requirements. In this case study, Britvic produced a new drinks which is Tango variant called Tango Clear with no added sugar. This product’s target customers are old people. Britvic also plan to sold a Tango clear which taste are lemon, apple and watermelon. This will attract children and young teenagers to buy. Marketing segmentation and targeting can help Britvic to meet the needs of different age customers better and occupy the favorable position in the market competition. Marketing segmentation and targeting also could discover and explore new market opportunities which can let company have a clear development direction.
Part 6 Explain marketing theory in relation to each of the 4 Ps. Explain the factors that would affect how Britvic might decide on their choice of each of these items.
- Product mix and individual products
- Distribution channels
- Pricing methods
- Promotional methods
- Product mix is the ratio and total amounts of all kinds of company’s products. In this case study, product of Britvic have two types which are product mix and individual products. If a company only sales one series products, customers will loss freshness of this product soon and they would not buy their product. This is individual products, these products can satisfy customers who has single taste. For example, after World War II, there are a lot of poorest people want to drink juice drink to take Vitamin C, so juice is individual products of Britvic. Britvic also produce a product mix which is carbonates drinks such as Pepsi, 7UP, Tango, Red Devil, R Whites, Idris, Shandy Bass, Purdeys. These can satisfy those people who are likes drink carbonates drinks but has not only one taste.
- Distribution channel is a way of selling a company’s product either directly or via distributors. Possible distribution channels are wholesalers or small retailers or retail chains or direct mailers or company’s own store. (thefreedictionary.com)
In this case study, Britvic’s main distribution channel is retailers which are leading supermarkets, local shops restaurants, pubs, hotel and cinemas. This can make Britvic’s drinks sales to farther afield and gain a greater visiblity. In addition, Britvic has their own fully serviced vending machines. This kind of direct marketing way can reduce costs and provide convenience for the customers. Britvic could recruited agents throughout the country, which can help Britvic sales their beverage to more people which in small village.
- Pricing methods is a necessary method of company’s sales process. Every company has their own pricing methods which can pricing in a reasonable way. Company will according to the costs of products and sales situation to pricing their products. But the price is not set in stone, it will change according to the macroeconomic situation and income level of people.
In this case study, Britvic is a large beverage company so their drink’s price do not change easily because their drinks quality is very good and customers are rely on their drinks. For example, there were a great depression in Britain so many people do not have enough money to buy Britvic’s drinks to replenish Vitamin C. So Britvic must depreciate to cater to customers. Britvic could use different pricing method according to different regional income level, which can ensure profitability and meet customer requirements.
- promotional methods is a important method to sales products. Company always use advertising to let customers know the features of the products and attract customers to buy their products.
In this case study Britvic was associated with the wimbledon tennis championships and involved with the sponsorship of British pantomimes during Christmas 2009. This can increase Britvic’s exposure to let customers know their products and services. The second example in this case study is Britvic using a combination of poster, radio and advertisements in the Daily Record to raise brand awareness and promote sales. Britvic could make discount promotions activities in fixed time.
Part 7 In marketing a service, explain the importance of:
- Physical environment
Process There is a rigorous process from raw materials are transfer to Britvic’s factory then sales to customers. The company must keep under strict supervision so their product’s quality is well. After that, customers will satisfy the products.
In this case study, Britvic make a strict supervision to production process which can promise the quality would be satisfied with customers. This can make them has more competitive in beverage market.
People A successful company must have a great number of people which is internal customers and external customers. Internal customers is staffs and external customers are ordinary customers. Staff could produce goods with high quality and customers buy these products, it forms a business chain and let the company keep operation.
In this case study, Britvic have manufacturing plants in seven UK locations and there are 2700 employees. Because there is a lot of demand of Britvic’s drinks so Britvic need a great number of employees to produce drinks.
Physical environment Environment is a important factor of company, environment could influence company’s quality of product and customer’s purchase intention.
In this case study Britvic make beautiful packaging of their products that can attract customers to buy their products, which could allow Britvic gains a higher visiblity.
Part 8 Explain how Britvic might adapt their marketing mix in response to three possible changes in market conditions.
In beverage market, there will always are lot of changes so Britvic must use effective measures to adopt these changes. Actually, every market changes is challenge. (businessdictionary.com)
- Britvic should use competitive advantage strategy to operate in the market. For example, Britvic’s products has many different kinds so they could use this as advantage in market to keep competitiveness.
- Britvic should hire more excellent talents as their staffs. When Britvic face the market changes, a strong resouces is human resources. They could produce more cheap and good quality drinks and they could provide more constructive suggestions to management.
- Britvic should have explicit goal and mission because they could pumps money and resources to develop a new drinks. When management team and staffs know what are they should do, they will try their best to make it good to adapt the changes in market.
Britvic’s marketing did very well but they also need to improve. In past years Britvic has meet various challenges and they beat all the challenges so they have their own unique development method and marketing strategy. But nowadays beverage market competition is fierce so Britvic must use a new strategy to cater to more potential customers. Large and medium cities of the beverage market is saturated, so Britvic should be referred to the third-tier cities and the rural market. Britvic should produce a new type of drinks which has low cost, relatively cheap price and beautiful packaging. This drink is suitable for rural consumption marketing positioning.
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Marketing: An Introduction, SQA, 2014