Q1: Ans: The term marketing concept consists of following key characteristics: 1-Identifying 2-Anticipate and satisfying 3-Profit These characteristics are illustrated as follows: 1- IDENTIFYING Identifying is probably the most important task that generally involves the location and identification of needs and demands of the public and to gain the knowledge of competitors in the market. This process can be done through market research and public surveys about what products and services people want from the producers, then plan to produce and fulfil the customer requirements keeping the prices in mind. 2- ANTICIPATING AND SATISFYING
A key character of marketing is to provide the services and products what customer REALLY wants and to ensure that the customer feels that their contact with the marketer is building a good relationship among the two. That is to supply the right products, to right customers, at right price and right time. In this way, customers feel satisfaction and comfort with both the product and the marketer as the customer is getting benefits. Hence, the customers will prefer this marketer rather than any other one with same product. 3- PROFIT Undoubtedly, the ultimate objective of marketing is to make profit but this ust be done by fulfilling customer demands with total satisfaction in order to create a beneficial relationship. This not only results in the increase in profit but also develops the opportunity for the marketer to become a prominent supplier among other competitors in the market. Therefore, more satisfaction results in more profit for a particular marketer or organisation. Q 2 Ans: A) The Micro Environment consists of those internal elements over which an organisation has control or it can use these elements to improve their market activities and strategies.
Let us have a SWOT analysis on the case study: SWOT analysis: A strategic set of steps used to assess internal environments of an organisation with regard to its external environments. In accordance to BRITVIC: 1-Strength: Britvic gained more and more strength right from its origin. Now the main strength points of Britvic are: -Brand loyalty -High financial position -Biggest brand acquisition -High market shares -Well skilled workers -Effective distribution channels -Familiar company name -Modern technology -Leading soft drink supplier -Preference of younger generation to soft drinks
Employing 27,000 workers, having 200,000 outlets, export to over 50 countries, huge monetary stakes are all strengths of britvic soft drink organisation. 2-Weakness The only weakness that can be observed in the case study is that Britvic soft drinks are banned on children under 16. 3-Opportunity -Discovery of method to bottle fresh juices that stayed fresh for long time, when the enormous depression in UK indicated that majority of poor community demanded a cheap supply of vitamin C. -The addition of some biggest name in soft drink producer like Robinson and tango to Britvic -New machinery -Efficiency
These were the biggest opportunity moments for Britvic to comprehensively increase their business, which they eventually did and got the reputation what it is today. 4-Threats -Recession -Change of laws to ban advertisement of soft drinks to children under 16 -unsuitable summer weather conditions -economy downfall These are the threats to britvic that can cause the reduction of sales and income of britvic and can also cause the production of britvic to limit or stop for a particular product. This is the micro (internal) environment of Britvic which shows those factors which can be controlled by the organisation.
B) The Macro environment includes those uncontrollable external environmental forces that influence organisations strategies and planning. PEST analysis is the scan of uncontrollable external factors which include following factors: In terms of Britvic the factors are: – Political – The new government laws against the advertisement of soft drinks to children under 16 can enormously affect britvic sales. – Economical – Recession – Unemployment – Salary restraints These factors will cause people to spend less money on soft drinks. – Social – Sport association – Helping poor community – Sponsorship of celebrities and sport tournaments Health departments These can help britvic in its promotion of drinks and increase its sales. – Technological -Modern machinery -Moderns means of advertisement like radio, television, internet etc These all show external factors for Britvic which are beyond its control and these factors affect Britvic’s sales and goals. Q 3 Ans: MARKET RESEARCH Market research is the set of steps taken by an organisation in order to collect information about the markets current position, competitors, services, economical changes and customer demands etc. The importance of market research to Britvic This phenomenon can help britvic to develop: Business plans – Introduce a new product – Niche market – Provide excellent services in the way customer wants -Expand its current marketing strategy – Have information on public demand in a particular market place – Develop strategy to advertise, etc. – Increase its sales Britvic being such a huge globally recognised soft drink brand will also need and must undergo market research at regular intervals. All the above mentioned points are benefits for britvic as a result of market research. There are many factors that can affect the market, product, producer and also customers. These factors include: -change in demand -new generation new laws -economy -better technology -increasing competition So, Britvic no doubt us the number one supplier of soft drink but it is still necessary for it to keep up to date with the position of market with respect to the sales and demand of the product supplied. Britvic must regularly collect all the information about its rivals that produce same product but provide more services. Having knowledge of such things will help Britvic to develop strategies and plan to overcome its competitors. It can also help britvic to advertise according to the new generation’s taste. It will help Britvic to gain the satisfaction of customers.
Q 4 Ans: there are two different researches knows as qualitative and quantitative researches. Qualitative research: It is a detailed review of information gathered on a particular product. “Research that derives data from observation, interviews, or verbal interactions and focuses on the meanings and interpretations of the participants” (Holloway and Wheeler, 1995) Britvic can collect market research information in many ways: -public surveys -telephone interviews -focus groups -observations -internet websites -magazines -newspapers Britvic will use primary data in qualitative research.
According to the present stage of britvic, the best method for britvic is to undergo direct interviews of customers on its sale points. Benefits: It will cost low, will get quick response of customers and it will collect detailed views of customers regarding products. Quantitative research: The measurement of number of people who reaction in a particular way. Britvic might use secondary data for its quantitative research. Its may collect its secondary data from: -profit and loss statement -cash flow statement -financial statement Benefits; This technique is more accurate, reliable and is the cheapest. Q 5 Ans: Market segmentation
It is the sub division of customers according to differences in age, gender, social class, life styles, geographic locations income etc Segmentation and targeting After successful division of customers, the selection of a segment and targeting that segment with the products is target marketing. The process of market segmentation involves the understanding of customer needs, analysing the potential of company regarding the production of product, manipulating strategies for introduction and advertisement of product, selection of price and selection of place of targeting chosen customers for a particular product.
Benefits to Britvic Britvic being a soft drink supplier to customers of all the ages, the biggest benefit of market segmentation is that can easily develop strategies and plan to supply and target each category of customers according to ages and gender. It can also help britvic to improve its current marketing position comprehensively and become even stronger challenger. It can help Britvic to focus on providing more services to customers and gaining more customer satisfaction. Q 6 The 4 P’s actually stand for: – Product A product is defined as something that is manufactured by labor or effort for some purposes. 2- Price It is the amount or quantity of payment for a particular product. 3- Place It is the way or means by which a customer can obtain a product. It has two elements. The first element is channel outlets through which goods can b sold. These can b retailers, wholesalers, agents etc. The other element is the transportation of goods from the producer to customer. 4- Promotion
It is way of getting people to know about your product and services. This can b done in various ways like sales promotion, advertisement, direct marketing, word of mouth or public relations etc. Factors that will affect Britvic’s decision on: a)Product mix and individual products Britvic might decide on the supply and selection of the place of providing the product, decision on the price of products according to the place and economy status of area and the level of advertisement according to the area of product launch. b)Distribution channels
Britvic have more than 200,000 outlets for soft drinks and their OWN outlets will be best for its products because it will be cheap, reliable and time saving. c)Pricing methods Britvic might decide: Competitive price for core brands Since 2009, britvic has gained market shares all across the world and have grown stronger so based upon this factor same price like others will not affect them as it is successful brand. Skimming Price for seed brand “Seed brands are believed to have greatest potential for growth” (Case study marketing module)
Therefore high pricing will not affect these products and will be successful. Penetration price for Tango As tango is considered irreverent brand appealing to children, so low pricing will create more chances of success like cash in hand sales will be easy fast and will increase wealth of shareholders. d)Promotional methods Britvic might use normal advertisement for core and seed brands but it must have more focus on advertisement on Tango as it will have new flavour. They can use attractive packing and make changes in quantity packing.
They can advertise in local sport matches, local school competitions newspapers, magazines etc by giving new drinks as reward in family packs that will cover the sales of old tango flavour too. Q 7 Ans: Any product that is introduced in a market must have services regarding the product. This not only applies to new products but also to existing products. These services can include customer care, warranty, guidance notes, help lines, after purchase service, free repair service etc IMPORTANCE OF: a)Process
The process of marketing service involves all the tactics and plan of providing services to customer from the date of production to the date of sale. So this must be undergone before the customer buys the product. It also involves the tactics to provide services after the sale and get the feedback of the customers. b)People This section includes people who are appointed to 1. Provide the services 2. Customers 3. People who don’t buy the product. The people who are providing the services are the most important. They must be very skilled and have the potential to satisfy the customer on regarding product and its services.
Its will also be important to provide services to those who don’t buy the product as it will increase the customer satisfaction ratio. c)Physical environment Physical environment includes the location, cleanliness, colour scheme, layout and decor of the place of marketing a service. In accordance with the physical environment the decoration of the place should attractive to customers like mixture of different colours like multi colour light bulbs decorations like flower vase, paintings, music beautiful furniture etc. moke control should also b done to increase customer’s attachment to the service and will have a good feedback. Q8 Ans: The three possible marketing conditions can be: 1)New competitor In such as case, if the competitor is more financially strong or better in any way, Britvic must increase their advertise appeals changing their prices using penetration pricing, places for outlets including change of advertise media and use combinations like TV, newspapers, magazine etc. They can change timing and frequency of advertisement.
Britvic can also use the short term pre mentioned price discount technique. 2)Interest and exchange rates For changes in exchange rates, Britvic must have an alternative from risk of exchange. For the change in interest, Britvic might change their source of finance keeping company’s personal profile safe. 3)New technology and innovations If new technology is introduced in market that could change demands of customers then Britvic must also gain such latest technology and provide this new technology with their products and services.