Case Presentation on Britvic PLC

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TEAM ONE

Hoo Xin YiVong Sin YeeAnnabel TangOng CrystalWong Xun Min

1)Overview of issue2)Rationale for choosing drench3)Analysis of drench using 4Ps4)Recommended course of actions5)Evaluation of recommendations6)Conclusion

CONTENT PAGE

TIMELINE

CHALLENGES BRITVIC FACES

Bottling deals (Pepsi & Gatorade)

• Continually renewing bottling rights with PepsiCo which may lead to overdependence•May lead to complacency in the long run

CHALLENGES – OVER RELIANCE

CHALLENGES – LOW BRAND AWARENESS

• Britvic?? Oh, you mean PEPSI, 7UP, DRENCH, GATORADE!• IT DOESNT MATTER!

VS.

CHALLENGES – CHANGING CONSUMER TRENDS

• More health consciousDon’t want sugary carbonates, hence a need to shift marketing focus to healthier options

CHALLENGES – CHANGING CONSUMER TRENDS

• More environmentally consciousConcerned whether the following are “green”1. Product2. Packaging3. Manufacturing process

CHALLENGES – COMPETITORS

• Main competitor : The Coca-Cola Company• Others: GlaxoSmithKline, Silver Spring Mineral

Water Company, Boost, Fentimans

SOLUTION1. Reduce over reliance

on bottling deals

2. Accommodate changing consumer trends for a healthier and greener product

3. Easily out do competitors.

Choose to increase sales for a certain brand manufactured by Britvic, that is both healthy and green and able to easily out do competitors.

WHY DRENCH?

WHY DRENCH?• In 2013, the United Kingdom bottled water

market is forecast to have a value of $4.6 billion, an increase of 39% since 2008.

Groupe Danone (30.8%)

Nestle S.A. (18.8 %); 18.80%Highland Spring (8.6%);

8.60%

Others (41.7%)

WHY DRENCH?

WHY DRENCH?

WHY DRENCH?Year Production

(million litres)UK watersconsumed in UK(million litres)

2004 1578 1543

2005 1638 1598

2006 1729 1687

2007 1704 1649

2008 1658 1598

2009 1682 1626

Source: Zenith International

WHY DRENCH?

WHY DRENCH?

WHY DRENCH?

Still flavored (11.9%); 11.90%

Still unflavored (47.3%), 47.30%

Sparkling flavored (4.8%); 4.80%

Sparkling un-flavored (36%),

36%

Profitable

WHY DRENCH?

ANALYSIS USING 4PS

4P MODEL

• variety of sizes for every purpose

PRODUCT - VARIETY

500 ml 750 ml 1500 ml 2000 ml

• Pop top cap that allows easy drinking on the go

• Cap can similarly be unscrewed like the common cap for greater water consumption

• Slick svelte body with indenture to allow easy grip

• Transparent body to enable drinkers to know how much they have drunk

• Three pronged round base to provide sturdy support

PRODUCT - DESIGN

PRODUCT - FEATURES

• Bottle has a nice effect and rather unique as compared to other bottles’ design.

• Fresh, crisp and hydrating taste

• Bottles contain 10% rPET (recycled

polyethylene terephthalate) which can be recycled to make into new drench bottles.

PRODUCT - PACKAGING

•Describes its water’s purpose very adequately.•Easy to Remember, Pronounce, Recognise.• Extendable. Spring water

OUR BRAIN IS 75% WATER!

PRODUCT – BRAND NAME

Fruit Juices

PRODUCT - QUALITYDrench comes straight from the pristine brooks of their native land, Yorkshire.

1.Conscience free 2.Psychological

factor of patriotism

4P MODEL

PLACE

4PS - PROMOTION

ADVERTISING

RECOMMENDEDCOURSE OF

ACTION

DRENCH

MARKETING STRATEGY

UNDERSTANDING THE MARKETPLACE AND CUSTOMER NEEDS AND WANTS

MARKETING STRATEGY

DESIGNING A CUSTOMER-DRIVEN MARKETING STRATEGY

SEGMENTATION& TARGETING

For the Masses

MARKETING STRATEGY

CONSTRUCT AN INTEGRATED

MARKETING PROGRAM THAT DELIVERS

SUPERIOR VALUE

PRODUCT

Lunchbox series!

Survival series!

MEGA series!

PRODUCT

PROMOTION

PROMOTION

PROMOTION

EVALUATION OFRECOMMENDATIONS

• Convince consumers that bottled water is worth buying

• Competition may increase in the bottled water market

CHALLENGES

• Increasing environmentalism• Sustainable marketing concept:

– Present needs of consumers and Britvic– Future needs of consumers and Britvic

“Producing and delivering a litre of bottled water emits hundreds of times as much greenhouse gas as a litre of tap water. Then you've got the plastic, only one quarter of which is recycled or the glass that eats so much energy to make and re-use.”

Tom Heap, BBC Panorama

SUSTAINABILITY

•Increasing environmentalism

•Sustainable marketing concept:• Present needs of consumers

and Britvic• Future needs of consumers

and Britvic

SUSTAINABILITY• Biodegradable plastic• Britvic bottle recycling points at shopping

malls • Water coolers at shopping malls, school

canteens

SUSTAINABILITY• Campaign can be expanded in future to

market Juicy Drench as well– Flavoured waters as an alternative to other soft

drinks.

CONCLUSION• Tap into a emerging market• Diversify• Sustainable

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