Marketing: An Introduction
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1. Marketing concept states that success is achieved by indentifying needs and wants of the target market by satisfying them batter than rivals and competitors. Its three characteristics are the following.
Customer satisfaction: The firm should identify and define customer needs and wants as well as their expectations of all the goods and services provided. Profit: According to the market concept, profit can only be achieved by the customers getting a reasonable product for a reasonable price, while for the company it’s to receive a reasonable profit from a reasonable product that has been acquired by satisfying customers. Total Company effort: All the departments functions and section of the business must work together to meet the main objectives of the firm, which is to satisfy customers.
2. The soft drinks Company Britvic’s micro environment revolves around its rivals, buyers and suppliers. Due to a variety of soft drinks available on the market, Britvic’s is facing stiff competition in almost every market its invested In, but it’s still ranked 2nd in the UKs leading soft drink sales. Some of its popular products like Pepsi are licensed and receives product ingredients direct from Pepsi Co. Due to this, good relations need to be made and kept as if supplies are stopped it could lose some chunk of that market share that it has invested so much resources in and even worse losing customers to other brands. The SWOT analysis of Britvic is the stuff which is necessary for any business to survive. With this analysis it can better analyze its situation in the national and global markets.
Strength: Having drinks from the leading brand, license to produce and brand loyalty. In Britvic’s case, it having a diverse portfolio of products is a valuable and key element that helps it to better position them in the market. Weakness: It means the company has a poor reputation that causes many problems for the company like hardship, making a loss and disputes for the business. In Britvic’s case its weaknesses are that it’s only limited to the UK and a few other countries, leading to less market share.
Opportunities: Younger generation being targeted, promoting sales and increase the brand awareness. In Britvic’s case they can look into mergers, investments and acquisitions with other companies all around the world, increasing their market share at a global position. Threats: The threat to the company arising from the competitors activities. In Britvic’s case, Coca Cola is the UKs leading soft drink producer, ahead of Britvic. Due to this Britvic needs to think of strategic and innovative ways to meet the demands of the competition, decreasing the treats to its position.
Its Macro environment on the other hand depends highly on the Economy as during these hard financial times, people are looking the best value for their money. The PESTEL analysis for Britvic includes
Political: The political factors concerning the rules on advertising food and drink to children under 16 which is banned from television campaigns presents a problem. 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 the supply low. Social: Social factors include lifestyle trends.
Technological: Technological factors are 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. Environment: Environmental factors are using more recyclable materials in their packaging. Legal: The legal factors include government warnings to companies like Britvic to decrease sugar content due to it causing some health problems.
3. Market research and the information gathered are very important to an organisation like Britvic’s because it can help with boosting sales and making itself more financially stable. The research that a company like Britvic can take are looking into sales of drinks, customer needs, look into statistics and numbers of soft drinks to see which are selling and which aren’t and also if there is room for growth. With the help of the above research Britvic would be able to achieve a stronger position in the market as meeting customer needs could exponentially increase its sales, and thus leading to a better overall performance for the company in the direction of becoming UKs No.1 soft drink brand.
Other areas where such data could be used are in product development, new markets and to minimize risks to Britvic. Data can be used to see if new emerging markets can take in Britvic’s line of soft drinks which will help increase its sales and help sustain growth. It can also look into improving and forming of new products by using surveys, directly telling Britvic’s what the customer wants in the old products and what kind of drinks would they like e.g. flavours, diet, sugar free, etc. It can look into reducing the financial risk to the company by letting them know which products are not doing so good or terrible and producing more is a waste of money.
4. Britvic can collect and use market research through a variety of way. They can use Quantitative and Qualitative research methods which are widely used by the industry.
Quantitative research is when the use of scientific research e.g. statistics, models, etc is used for research. In the case of Britvic, statistics will be the best quantitative research method because numbers are really what a company like Britvic are looking for. With the help of statistics they can clearly identify and analyse their sales of almost all their products and could lead to a better understanding of what the customer wants. Examples are comparing the sales of a specific drink from the year before to the current year, actual numbers of drinks sold where and what time of the year.
Qualitative research is when in depth research is done regarding the human behaviour and the correlation with its products. Doing customer needs surveys will be the best qualitative research Britvic could be looking at. With surveys they could better understand what the customer wants, what age group to focus on, what are their best products and worse. This information could help those making better decisions on some hard real data, not just theory and hypotheses. Examples are research conducted face-to-face, with a clipboard and pen in a busy place, over the telephone, via post or email, online or via your website.
5. 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. 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 is 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 and 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.
In Britvic’s case the benefits of market segmentation is quite good. 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. E.g. 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.