Robert Alexandru uu

13011413

1

Assessment Task 2


6. Explain marketing theory in relation to each of 4 Ps. Explain the factors
that would affect how Britvic might decide on their choice of each of these
items.
Product
The marketing mixt consists of four elements also known as the four Ps:
Product;
Price;
Place;
Promotion.
Products are both goods (tangible) and services (intangible) which are
produced and sold by the companies. Some of the key elements of the product are
packaging and branding. The product must stand out of the crowd and be appealing
to people in order to have a better sale opportunity.
The product model, which can be represented by the Three Levels of a
Product concept, consists of three parts:
Core product - not the tangible physical product, its the benefit of the
product which makes it valuable ;
Actual product the tangible, physical product;
Augmented product non-physical part of the product, its the added value
for which you might or might not pay extra.
Product mix, also known as product assortment, refers to the total number
of product lines that a company offers to its customers. A product line is a group of
related products but may serve different purposes.


Dimensions of a product mix:
Width number of product lines a company sells. Britvics width or line of
products consists of soft drinks both carbonated and still;
Robert Alexandru uu
13011413

2

Length number of total products or items in a company's product line.
Britvics length consists of nineteen products: eight products in the carbonated
line and eleven products in the still line;
Depth total number of variations for each product which can include size,
flavour and any other distinguishing characteristic. Being the second branded
soft drinks business in UK and also the first supplier of branded still drinks in
UK, Britvics depth is quite big ranging from various sizes and flavours;
Consistency how closely related product lines are to one another--in terms
of use, production and distribution. Due to its range of products Britvic has a
very strong consistency, their lines being very close related.
The product life cycle describes the stages a product goes through from
when it was first thought of until it finally is removed from the market. Not all
products reach this final stage. Some continue to grow and others rise and fall.
Main stage of product life cycle:
Introduction researching, developing and then launching the product. In this
category there could be products such as Tango Clear, Lipton Ice Tea,
Robinsons Smooth Juice and Lime Grove all of them being ready to be
launched on the market by Britvic;
Growth when sales are increasing at their fastest rate. Seed brands are
those that are believed to have the greatest potential for growth and include
Gatorade, Drench, V Water and Pepsi Raw;
Maturity sales are near their highest, but the rate of growth is slowing
down, e.g. new competitors in market or saturation. Britvics core products
that have reached maturity stage are Pepsi, Robinsons, Fruit Shoot, J2O and
Tango, all of which have a considerable part of the market share;
Decline final stage of the cycle, when sales begin to fall. Products such as
hot drinks, still water or drinks with high level of sugar might be on their final
stage of the cycle.
In order to extend the life of the product before it goes into decline extensions
strategies are used:
Advertising try to gain a new audience or remind the current audience;
Price reduction more attractive to customers;
Adding value add new features to the current product, e.g. video messaging
on mobile phones;
Explore new markets try selling abroad;
New packaging brightening up old packaging or subtle changes such as
putting crisps in foil.

Robert Alexandru uu
13011413

3

Place
The place or distribution element of the marketing mix is about getting the
goods from where they are made to where they are wanted . So we can say that
place is distribution. The objective of distribution is to make products available in the
right place at the right price at the right time in the right quantities!
Distribution channels manage the series of exchanges that a
product/service goes through as it's transferred from producer to final user, and
these channels may include a number of go-betweens who act as intermediaries.
Examples of intermediaries:
Retailers
Wholesalers
Dealers
Manufacturers
Agents
Retailers are the ones who sale their goods and comodities directly to their
clients. These products are purchased from the manufacturer or wholesaler and
sold to the end user at a marked up price.
A wholesaler is an individual or business that buys in bulk from a
manufacturer and then redistributes goods to retailers. Their role is to sell onto
retailers.
One of the factors that might affect Britvics choice of distribution channel is
costs. They have to search for a good strategy in order to keep the costs as low as
posible without affecting the quality and the efficency of the job.
Another factor that could affect Britvics choice of distribution channel is length
of the channel. When you have longer distribution channels more problems are likely
to occure which will affect the company. So they must find the best solution in order
to diminish the risks and posible loss.

Price
The Price element of the marketing mix is very important in marketing
because the price the company charges for its products will ultimately determine the
organisation's revenue and profits.
Robert Alexandru uu
13011413

4

The price that is set sends out a signal about the quality of the product you
are trying to sell therefore, careful consideration must be given to your pricing
strategy.
The idea is not trying to buy the customers but rather to win them.
Income related pricing strategies
Price skimming is about targeting the highest end of the market and
charging these segments the highest possible price. The term derives from skimming
the cream off the top of the milk. In other words, this is a deliberate plan to target
the richest part of the market and charges a high price. It is a good strategy because
it is easier to reduce price than to increase it. It will also allow the organisation to
establish a quality brand image. The best time to use it is during introductory stage
of the product life cycle because companies can take advantage of being first to the
market. Britvic can try using this for the Tango Clear.
Volume related pricing
Penetration pricing is used when a company wants to gain as big a market
share as possible in the shortest possible time so they organisation may price
aggressively below existing competition, deliberately paring its margins for the sake
of volume. Britvic can use this strategies for their products such as Lipton Ice Tea
which has a lot of substitutes and competitors on the market.
One of the factors that might influence Britvics choice of pricing strategie can
be the level of competiton. Their main competitor is Coca-Cola so they might try
using penetretion pricing when they sell their products.
Another factor can be the class of targeted customers. By developing the
Tango Clear they will gain advantage over the elderly market.

Promotion
The aim of the promotion element of the marketing mix is to grow the
business and increase market share. Businesses develop a promotional strategy in
order to encourage customers to purchase their products.
Objectives:
Inform
Persuade
Create Awareness
Remind
Robert Alexandru uu
13011413

5

Promotional methods
Advertising is used via paid media channels such as TV, radio, internet. It is
any paid form on non-personal promotion transmitted through a mass medium.
Personal selling is when the company has its own selling team which usualy
talks directly to the customers. They aim to inform and encourage the customer to
buy or at least try the product. Persusasion can be used during this method.
Sales promotion is the process of persuading a potential customer to buy
the product. It is often used with mass produced products and is aimed to be used
as a short-term tactic to boost sales.
One of the factors that affected Britvics choice of promotional methods was
the new rules on televison advertising of food and drink to children aged under 16
which led to the use of non-televison campaigns.
Another factor can be the type of buyer they are aiming their products at. If
they focus on younger population they would use media channels for adverdising
their product such as TV or internet.

7. In marketing a service explain th importance of:
Process
People
Physical environment
Together with the first four Ps they make up the extended market mix or the
seven Ps.
People is one of the elements of service marketing mix. People define a
service. In case of service marketing, people can make or break an organization.
Thus many companies nowadays are involved into specially getting their staff trained
in interpersonal skills and customer service with a focus towards customer
satisfaction. In fact many companies have to undergo accreditation to show that
their staff is better than the rest. Definitely an USP in case of services.
Process Service process is the way in which a service is delivered to the
end customer. Lets take the example of two very good companies McDonalds and
FedEx. Both the companies thrive on their quick service and the reason they can do
that is their confidence on their processes. On top of it, the demand of these services
is such that they have to deliver optimally without a loss in quality. Thus the process
of a service company in delivering its product is of utmost importance. It is also a
critical component in the service blueprint, wherein before establishing the service,
Robert Alexandru uu
13011413

6

the company defines exactly what should be the process of the service product
reaching the end customer.
Physical Evidence The last element in the service marketing mix is a very
important element. As said before, services are intangible in nature. However, to
create a better customer experience tangible elements are also delivered with the
service. Take an example of a restaurant which has only chairs and tables and good
food, or a restaurant which has ambient lighting, nice music along with good seating
arrangement and this also serves good food. Which one will you prefer? The one
with the nice ambience. Thats physical evidence. Several times, physical evidence is
used as a differentiator in service marketing. Imagine a private hospital and a
government hospital. A private hospital will have plush offices and well-dressed staff.
Same cannot be said for a government hospital. Thus physical evidence acts as a
differentiator (Marketing91.com, c. 2011).
Sometimes when we go outside to The Muckle Cross in Elgin, the pub is very
crowded and the lack of personnel really shows up. You have to wait at a queue for
ten to fifteen minutes just to order. Although it is a pleasant place to go with your
friends for a drink and the physical evidence are good the lack of people/employees
will sometimes affect your experience.

8. Explain how Britvic might adapt their marketing mix in response to
three possible changes in market conditions.
From a political point a view the government might introduce a new stricter
legislation on recycling. For Britvic this may be an opportunity because they could
make some eco-friendly products that are recyclable gaining new customers. But it
could also be a threat if they dont adapt to the changes they might lose their market
share to their competitors.
Due to the economic recession there is less disposable income available so
people have less cash and sells are falling. This is an economical problem that Britvic
might face. In this case they could use promotions in order to sell their products.
They could have promotions such as two for the price of one or buy one get the
second one for half the price.
A social problem could be that nowadays people are living longer. I think
Britvic has noticed this and they are trying to expand their market share by making
products especially for the older population. That is way they have made the new
Tango Clear with no added sugar, designed to attract older customers.
Social media is more and more present in our lives. That is way it is one of the
best channels companies can advertise through. Britvic had to change its
Robert Alexandru uu
13011413

7

advertisement through TV commercials strategy to non-televisions campaigns due to
new rules on television advertising. They have also seen an opportunity to improve
their brand image by endorsing famous people and competitions. Robinsons has
long been associated with the Wimbledon tennis championships.
References:
1. Marketing91.com (c. 2011), Service Marketing Mix [Online]. Available from
http://www.marketing91.com/service-marketing-mix/ [18
th
December 2013].
2. Powerpoint slides available on blackboard.