Shanghai University of Finance and Economics

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29 February 2016

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1. Introduction
Britvic Soft Drinks has a long and rich history. At first this company was then little more than a home business run from a chemist’s shop. Soon the company was producing all kinds of originally concocted soft drinks. It was only in 1949 that the Britvic brand was formally launched into the marketplace. Following the Second World War, Britvic went from strength to strength. In 1971, the British Vitamin Product Company formally changed its name to Britvic. Now, Britvic has two branded soft drink business which supplies wide range of products. But Britvic has taken a hit, they improve position. Through marketing campaigns and drench brains campaign, including TV adverts and establish. It gives brand a great support and fit with the personality of the brand. Britvic increases market share and grow consumer awareness of its brands. Via fast moving and use different campaigns in various market. But Britvic also have some negative, for example the main consumer groups are young people. The old man Pay more attention to health. So Britvic need in keep original strength, for more consumer groups make action. Britvic places strong emphasis on brands and creating brand loyalty. They plan to launch a Tango, designed to attract older consumers. To expand consumption groups and have more benefits.

2.0 Key characteristics of the marketing concept

2.1 Marketing
“Marketing is the process of communicating the value of a product or service to customers. Marketing might sometimes be interpreted as the art of selling products, but selling is only a small fraction of marketing. As the term “Marketing” may replace “Advertising” it is the overall strategy and function of promoting a product or service to the customer. ” (Source: Other marketing definitions are mentioned in the book and PPT is: “Selling goods that do not come back to customers who do — at a profit which satisfied shareholders — using means which satisfy other stakeholders.” (Source: SQA, 2006) “Marketing is process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.”(PPT) From those three definitions I think marketing is an activity. Marketing activities and strategies result in making products available that satisfy customers while making profits for the companies that offer those products. Marketing is delivered to the client satisfaction profit through the conversion.

2.2 Three key characteristics of the market concept

The company should identify and define customer needs and wants as well as their expectations. All goods and services produced by the firm must satisfy the customer needs. Then they will keep returning as a frequent caller and purchase more goods. All departments, functions and sections of the business must work together to meet the main objectives of the organization. You should let your employee satisfaction of their salary, and provide good working conditions, so that they will continue to work hard. Must follow government’s laws and pay taxes to create honesty. Marketing concept assumes that profit can only be achieved when customers are satisfied. The customers are entitled to a reasonable product for a reasonable price, while the firm is also entitled to a reasonable profit for a reasonable product. And company must be enough profit made to keep the business in operation. To ensure these characters, a successful company can be formed.

3.0 Britvic’s micro and macro environment

A collection of companies that carry out similar tasks or provide similar benefits is called an industry. These organizations exist within an environment, which exerts an influence on the operations of the industry and the individual organizations within it.

3.1 Micro and Macro environment

“The micro environment refers to the forces that are close to the company and affect its ability to serve its customers. It includes the company itself, its suppliers, marketing intermediaries, customer markets, competitors, and publics.”

“The macro environment refers to all forces that are part of the larger society and affect the microenvironment. It includes concepts such as demography, economy, natural forces, technology, politics, and culture.”

3.2 PEST Analysis

The PEST include political, economic, sociocultural, technological. Political factors are government meddling in the economy. If policy having changes, the market must make the corresponding change. Economic factors include economic growth, interest rates, exchange rates and the inflation rate. Economic factors can influence the enterprise operation. For example, exchange rates can influence of import and export goods. Social factors include the cultural aspects and include health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety. This factor can tell enterprise how to operate. To find a most conforms to the social needs of the operation. Technological factors include technological aspects such as R&D activity, automation, technology incentives and the rate of technological change. The technological factors can change cost of production, how a business will run.

3.3 These environment relate with Britvic

There have new rules on television advertising of food and drink to children aged fewer than 16 has led to the use of non-television campaigns. So young consumers become reduces, Britvic’s advertising strategy failures. In 2008, soft drinks sales decline due to the economic downturn. At that time consumers seek value for money. So soft drink was proved to be elastic demand. It cannot avoid the pressures of the economic crisis. Britvic can sell cold drinks in summer and in winter sell hot drinks. It is a new opportunity to make the drink market development. Package technology is a significant development in Britvic. Use bottled instead of glass bottle, it can make transportation more convenient. And nowadays the packages of soft drink are more and more advanced. At the same time it can meet customer demand and reduce the cost.

4.0 Important of market research and important gathered

4.1 What is marketing research?
“Market research consists of testing the market to determine the acceptance of a particular product or service, especially amongst different demographics. It is used to establish which portion of the population will or does purchase a product, based on age, gender, location, income level and many other variables. Market research allows companies to learn more about past, current and potential customers, including their specific likes and dislikes.”

4.2 The importance of information

Companies need information about their customer needs, marketing environment and competition. Companies can follow their information to sure how their business will run. Marketing managers do not need more information, they need better information.

4.3 Types of market research

The types of market research is defining the problem and research objectives; developing the research plan for collecting information; implementing the research plan collecting and analyzing the data; interpreting and reporting the finding. Market research includes exploratory research, descriptive research and causal/predictive research. There are two main sources of marketing research data: Secondary research and Primary research. Secondary, or ‘desk’ research uses existing information, collected originally for some other purpose and now being used a second time. “When research is conducted to unearth original data, it is called primary research. To do this, an original research plan must be devised which will encompass, data collection, data input and then the production and analysis of the subsequent results. Due to the sometimes lengthy duration of this research it can often be expensive to conduct. However, because the research is original, the results gathered will be more relevant to the needs of the client.”

4.4 Type of information

The gathering information includes Secondary information and Primary information. “Primary information is information that has been obtained first hand, or is original. Primary information is the exact opposite of secondary information. Primary; original, first hand, principle, first priority information; knowledge there are many forms of primary information, these include; surveys (that you have conducted), interviews, human resources and so forth.” Primary information is the original materials which have not been filtered through interpretation, it is someone want to gain some information then he through statistical get conclusion. It is even no evaluation by a second party. “It is information compiled/generated/created by computer. Secondary information can be deleted and regenerated at any time. Secondary Information is information that is derived from other information.” Secondary information may be after a second use. So it is may no use value

4.5 The research in Britvic

Britvic can research its customers. To found the main consumer groups. Britvic can make a questionnaire issue to each human that purchase their products to make the product meet the customers’ need. Then they can find the main consumer groups with Britvic is teen-agers. And then Britvic plan to launch a Tango variant called Tango Clear with no added sugar, designed to attract older consumers. The move can make to improve its current market conditions and have a group of constant consumers. The company also can take some new projects to better meet the needs of customers. The primary research strengths are dealing with problems very accurate, the weakness is time consuming, Britvic can get the original information, but it will take much time and the cost is expensive. However the result of research is more in line with customer demand. Secondary research strengths are fast and easy to get, weaknesses are collected for other, Britvic can easily get a rough answer, but it is easy to get. I suggest the Britvic need a market research before developing Tango Clear in order to figure out the right marketing mix and the wants of customers. With the research, they can avoid the market failure and unnecessary loss.

5.0 Marketing research information collection technique

Britvic invention a new product called Tango Clear. This product with no added sugar, designed to attract older consumers. Before this product develops Britvic can have a survey such as questionnaire. This action is Britvic go through survey on consumers tastes preference determined. From the survey, company know what flavor is older customers prefer. So they can development this new product with this survey’s information. Tango has two star flavor products. The two products have an excellent sale. This product is the first time that keep the older customer change their opinion from a product specialized aim at children. Therefore, there will take more customers to buy this product. Then a high brand loyalty has been established. Primary research include: qualitative research and quantitative research. Qualitative research tends to know the opinion and view of people. And the quantitative research tends to find the statistical information. If Britvic used In-depth interviews, they can gain the information clearly and particular. But this way is so expensive and waste too much time. So we do not recommend Britvic using this method. If Britvic used postal surveys, it is very convenience to the company. But it must need much time to receive reply. Britvic can use a qualitative research techniques that focus group. Britvic need to promote the new product for older customer. So they can only take a survey from older customer.

6.0 Market segmentation and targeting

6.1 market segmentation
“Market segmentation is a marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will respond similarly to a marketing action. Market segmentation enables companies to target different categories of consumers who perceive the full value of certain products and services differently from one another.”  Levels of market segmentation can divide markets into smaller segments. It can be reached more efficiently and effectively with products and services that match their unique needs. Market segmentation represents an effort to increase a company’s targeting precision. It include: Mass marketing, it means same product to all consumers; Segment marketing that difference products to one or more segments; Niche marketing that different products to subgroups with in segments; Micromarketing, it means products to suit the tastes of individuals and locations. And the Micromarketing included Local marketing- tailoring brands/ promotions to local customer group; Individual marketing- Tailoring products and programs to the needs of individual customers. Standards of segmentation: Company can accord age, life, style, etc. to segmentation the market. For example Red Devin, it is a sport energy drinks, It mainly provide physical strength consumption huge young people drinking. So Red Devin’s market has according to age and life. Behavioral segmentation: It is based on variable such as customers usage rate, benefits sought, company brand loyalty, user status, occasions and readiness to buy etc.

6.2 market targeting

Target market is defined as being a set of buyers who share common needs or characteristics that the company decides to serve. The selection of potential customers to whom a business wishes to sell products and services
is targeting. Successful marketing find a target audiences. Every business set a target after their market research. The targeting involves segmentation the market choosing which segment of the market is appropriate and determining the product that will be offered in each segment.

6.3 The process of marketing segmentation and targeting

The process of marketing segmentation
The first step in the segmentation process is to establish the market and targeted consumers. The second step is often termed as market mapping and involves structuring the entire marketing procedures based upon the need of the said market. The third step is entirely dependent upon the consumers as the demand by consumers and their suggestions are largely viewed, surveyed, taken into consideration and in many cases implemented. In this step, the actual segment begins to take shape as like-minded consumers having same demands are placed together and are analyzed as a group. Launching of a parallel or a totally new product is viewed in this situation. The last step is catering to the needs of existing consumers and finding new markets. 6.4 benefits of market segmentation and targeting

1) Lower marketing expenses by targeting certain segment. Good for small budget companies; 2) Increase production and marketing efficiency and effectiveness; 3) Increased effectiveness in marketing campaign designed to attract that segment. 4) Improve profitability and enhance market share; 5) Tailoring product offering to a certain market segment improves customer satisfaction. Britvic following all kinds of market segmentation and they are applying market segmentation for targeting. As a result they are getting more and more benefits. They recognize that the Great Depression in UK lead to poorest customers needed an affordable source of Vitamin C and they have made a small glass bottle of juice and the idea was successful from the Geo-Demographic Segmentation.

7.0 Marketing mix in relation to Britvic

7.1 marketing mix
The marketing mix is a business tool used in marketing. The marketing mix is often crucial when determining a product or brand’s offering, and is often synonymous with the four Ps: price, product, promotion, and place. Product Line: A group of products have similar function, group of customers, distribution channel and price ranges. For example, Britvic have creation different kinds of drink. Product Depth: The more products in a product line are means product line is longer. For example, in one product line of Britvic have many kind of soft drink include lemonades, mineral waters, tonics. Product Length: All production the variety of goods. For example, Britvic have two main products that soft drink and Stills. Product Width: A company the number of the product line. In Britvic have two product lines. The brand of Britvic: Britvic has a constant flow of new product development. Follow different group of customers change their product. It can increase brand loyalty. The factors affect the successful launch of the new product in to the market. For example, the product is launched at the wrong time. If Britvic launch a new soft drink at winter, that a wrong time. Because winter is so cold, very few people to buy soft drinks. Therefore this product cannot be successful.

7.2 distribution channel

Product distribution (or place) is one of the four elements of the marketing mix. Distribution is the process of making a product or service available for use or consumption by a consumer or business user, using direct means, or using indirect means with intermediaries. The traditional distribution model is Manufacturing, Wholesaler, and Retailer. Intermediaries can save time, minimizing compliance costs, and free you up to focus on what’s important – building your business. The Britvic’s products present to supermarket, cinemas, Hotel, restaurant and Bar. Britvic supplies a wide range of products to approximately 200,000 outlets across the country. It is extensive sales channels. But it may be a little waste. It can decrease their distribution channel, take them don’t be so dense. In a public that population is concentrated; the intermediaries can lay up some vending machines.

Price is the main of marketing mix. Because it is must be right price. It is must be high enough to cover costs and make a good profit however at the same time be low price to catch the eye of customers. Pricing strategy which company’s use such as price skimming, price penetration, and competitive. Price skimming involves setting a high price before other competitors come into the market. This is often used of a new product which is not facing little competition. Price penetration is the pricing method of setting a relatively low initial entry price, usually lower than the intended established price to attract new customers. Influence the pricing strategy’s factors. Competitive: If there is strong competition in a market then the price of product will be same for different products. Products may be good or bad.

“Advertising is a form of communication for marketing and used to encourage or persuade an audience (viewers, readers or listeners; sometimes a specific group) to continue or take some new action.”  Advertising was usually including the type of newspaper, magazines, television commercial, radio advertisement, outdoor advertising or direct mail; or new media such as blogs, websites or text messages. Even if print and cinema are very attract consumers, but those ways is so expensive.TV is a good method, because everybody can see TV at home. Most of products have life cycle. For example, in summer advertisement with soft drink can be decrease. Because summer is so hot, most of people want to drink Cool coke to relieving summer-heat. Even if no advertisement customers don’t forget this product. But government doesn’t allow large-scale advertising. So the company can change their policy, they can Show the exhibits in the magazine covers. And according radio introduces their products. “Direct marketing is a channel-agnostic form of advertising that allows businesses and nonprofits organizations to communicate straight to the customer, with advertising techniques that can include Cell Phone Text messaging, email, interactive consumer websites, online display ads, fliers, catalog distribution, promotional letters, and outdoor advertising.”

8.0 Marketing mix from perspective of service

Tangible goods have many accompanying services. For example delivery precision, speed, after services, health concerns, customers services hotline, etc. Those accompanying services all can help company have improving goodwill, improving customer satisfaction and brand loyalty.

Process is a procedure. It is a mechanism of activities which is involved in the delivery of a service. It means that how a business provides a good service to the customers and to get success. For example, Britvic juices were sold in small glass bottles which ensured easy transportation. This process can make customer feel convenience. This is good service for Britvic.

People who serve the customers are the main in a service. People are considering the most important element in any kinds of service so the rule of staff is very important to influences a customer’s perception of the quality of service. Front side who are dealings with customers they must be highly trained and with good knowledge about their product. The company must train staff communication skills. For example: Ralph Chapman. He is owner of the British.

Physical Environment

Physical environment is very important for any kinds of business. It is an extended marketing strategy which is used to satisfy the customers by the best advertisement, with either tangible products or service. The marketing strategy should include effectively communicating their satisfaction to potential customers because of the intangibility of service. From physical environment the customers want comfort. For example, if manufacturing environment is very well. It is used to satisfy the customers by the best advertisement. On the other hand it will be not only comfortable for the customers but also for staffs. Britvic also can attempts to develop the online marketing. Online marketing is one of the population ways with shopping today.

9.0 Recommendations

Britvic is distributing its products to a wide range of areas such as supermarkets, local shops, restaurant, pubs, hotels, and cinemas. If they wanted to, they can distribute their products for a more broad range. They could distribute to wholesalers and give them exclusive offers which are not available elsewhere. They also can door to door promotion for their product. Britvic is a very successful brand and company, so they could use any kinds of promotional method. For example they have been used Wimbledon and Pantomimes which gives the brand a lot of publicity. However, it can not only make the advertisement through TV, it also can release it on the magazine, paper and subway advertising. Thus more people will know this brand. The sponsor can launch a lot of marketing activities, let more consumer understand this brand Britvic has a long and rich history, so its’ image in people’s hearts are very clear. Its’ price must be in a scope of public satisfaction. But it also can have a low-cost product. This action can take people use a low price to enjoy an old brand of products. So this method must be increased the products sales.

10.0 Summary and conclusion

The problem of Britvic is poor summer weather has impact the sales. And the health awareness has driven demand, it also impact the sales of soft drink. Britvic can according to the seasonal introduce the corresponding new products. For example, in cold winter they can develop a hot drink. Britvic should sure their marketing objective. It is aim at the vast numbers of young meanwhile attracted older customers. Britvic can accord older costumers’ flavor to develop some new products.

11.0 Reference
The websites visited included:

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Shanghai University of Finance and Economics. (29 February 2016). Retrieved from

"Shanghai University of Finance and Economics" StudyScroll, 29 February 2016,

StudyScroll. (2016). Shanghai University of Finance and Economics [Online]. Available at: [Accessed: 29 May, 2023]

"Shanghai University of Finance and Economics" StudyScroll, Feb 29, 2016. Accessed May 29, 2023.

"Shanghai University of Finance and Economics" StudyScroll, Feb 29, 2016.

"Shanghai University of Finance and Economics" StudyScroll, 29-Feb-2016. [Online]. Available: [Accessed: 29-May-2023]

StudyScroll. (2016). Shanghai University of Finance and Economics. [Online]. Available at: [Accessed: 29-May-2023]

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