BA170 Case3 Britvic.pdf

March 26, 2018 | Author: Caesar Cyril Tablante | Category: Drink, Brand, Food And Drink, Food & Wine, Beverages



Britvic:  Creating  a  Brand  Flavor Case  3 I. CASE  BACKGROUND     With  over  twenty-­‐two  iconic  brands,  Britvic  Soft  Drinks  is  the  second-­‐biggest  drink  manufacturer  in  Britain.   These   brands   include   carbonated   drinks,   still   and   dilutable   drinks,   fruit   juices,   bottled   waters,   energy   drinks,   and   a   lot  more.  Over  the  years,  it  has  earned  the  following  prestigious  titles:  #1  supplier  of  still  soft  drinks  in  the  UK,  #1   supplier   of   on-­‐premise   soft   drinks   in   the   UK,   #2   supplier   of   carbonated   soft   drinks   in   the   UK,   and   #2   supplier   of   take-­‐home  soft  drinks  in  the  UK.   Britvic  is  not  only  operating  in  Great  Britain  but  is  also  an  industry  leader  in  Ireland  and  France.  Through   its  increasing  market  share,  Britvic  was  able  to  increase  its  wealth  and  grow  its  overseas  presence,  particularly  in   Australia  and  the  United  States.       For  this  particular  case,  the  perspective  will  be  from  the  current  position  of  Britvic  in  the  United  Kingdom.     II.  ISSUE  IDENTIFICATION   Given   that   Britvic’s   brand   portfolio   is   so   varied   that   they   can   be   associated   with   constant   innovation/diverse   options,   how   can   Britvic   adapt   to   the   changing   tastes   and   lifestyles   of   its   consumers   while   maintaining  market  leadership?       III.  SITUATIONAL  ANALYSIS   A.  Market  Analysis   UK   consumers   of   Britvic   products   lie   within   the   increased   frequency   and   increased   value   stages   of   the   consumer  response  scale.  They  actively  have  a  recall  of  Britvic’s  brands  and  are  willing  to  purchase  them  from  time   to   time.   Since   Britvic   is   a   dominant   market   leader   in   the   soft   drinks   category   in   UK,   it   is   possible   that   it   has   established   a   solid   base   of   loyal   consumers.   However,   in   terms   of   international   consumer   response,   Britvic   falls   within  familiarity  and  exchange  level.  Some  may  have  heard  of  Britvic’s  sub-­‐brands,  say  7Up  and  Lipton  Ice  Tea,   but  may  not  necessarily  have  associated  these  sub-­‐brands  with  Britvic  itself.       B.  Brand  Situational  Analysis     i Environmental  Analysis   Social.   In   a   dynamic   and   fast-­‐paced   world   of   health-­‐conscious   consumers,   there   is   a   constant   seeking   for   instant   sources  -­‐  those  that  can  either  be  used  for  their  daily  needs  or  as  energizers  that  will  enable  them  to  perform   to  their  maximum  potential.     Technological.   In   industrialized   countries,   a   myriad   of   factories   and   industries   manufacturing   goods   and   products   abound   cities   and   metropolitan   areas.   Technological   improvements   in   packaging,   bottling,   and   processing  ingredients  have  been  implemented  for  a  more  efficient  and  cost-­‐effective  operation.  An  example   is  the  emergence  of  the  use  of  soft  pouches  -­‐  which  may  come  with  shielded  spouts  to  prevent  drink  spilling  -­‐   to  replace  traditional  bottles  and  cans.  PepsiCo  was  able  to  complete  their  100%  plant-­‐based  bottling,  with   biomaterials  like  pine  bark,  corn  husks  and  switch  grass  are  used.  These  materials  can  also  be  sourced  from   other  production  processes  of  companies.     Economic.   The   UK   is   experiencing   a   challenging   time   as   unemployment   reaches   a   17-­‐year   high   and   consumer   confidence  levels  are  still  low.  But,  with  the  help  of  the  Olympic  Games,  the  rising  popularity  of  sports,  and   the  emergence  of  many  energy  drinks  in  the  market,  the  soft  drinks  industry  has  achieved  a  growth  of  4.1%  in   consumption  volume.   Political.   In   March   2012,   the   government   has   launched   a   new   initiative   called   the   Public   Health   Responsibility   Deal.  The  main  goal  of  this  initiative  was  to  encourage  businesses  and  other  organizations  to  improve  public   health.   Many   soft   drink   companies   heeded   this   call   through   creating   programs   on   food,   alcohol,   physical   activity  and  health  at  work.  Moreover,  beverages  are  regulated  by  the  Food  Standards  Agency  and  Exclusive   Bottling  Agreements  (EBA)  to  ensure  the  health  safety  and  compliance  to  quality  control  standards.     ii SWOT  Analysis   Strengths.   Britvic   has   been   consistent   in   delivering   innovations   in   the   soft   drinks   and   bottling   industry,   such   as   the   use   of   stevia   extract   as   a   natural   alternative   sweetener   for   their   products.   The   company’s   diverse   brand   portfolio  is  also  a  valuable  element  as  it  enables  the  company  to  reach  a  wider  market.   Team  Six-­‐y   Acuña  |  Astudillo  |  Dela  Cruz,  J.  |  Dimaano  |  Ducanes  |  Salayog  |  Santos  |  Tablante     Unfortunately.  thus  boosting  its  global  position.  J.   To  increase  frequency  of  purchase  of  Britvic’s   brands  among  ‘occasional/seasonal’  buyers   and  steal  a  portion  of  Coca-­‐Cola’s  loyal   consumers  in  UK.   The  aforementioned  acquisitions.   Committed   to   creating   and   building   brands   that   delight   consumers   always   and   to   maintain   a   strong  track  record  of  innovation  in  products  and  packaging.  pubs.  Britvic’s  individuality  as  a  brand  continues  to  fade.   #2   supplier   of   carbonated   soft   drinks   in   the   UK.  pubs  &  bars.   as   with   any   other   companies.     C.  and  cinemas.   Develop  Britvic  as  a  whole  unified  portfolio   that  can  not  only  be  enjoyed  occasionally  by   specific  and  separate  markets  but  can  also   cater  to  both  the  needs  and  wants  of  any   market  at  any  point  of  their  lives.     D.   due   to   its   affiliation  and  acquisition  of  other  company  brands.   Britvic   lacks   global   presence   especially   in   Eastern   countries.  it  is  a  challenge  to  keep   the  users  hooked.  Britvic  is  the  leading  soft  drinks  and  bottling  company  in  the  UK  that  offers  a  wide  portfolio  of  brands  so   that  everyone  can  experience  the  taste  of  high-­‐grade  bottled  juices  and  drinks.   To  remain  as  the  dominant  leader  in  the  market   by  continuing  to  brand  itself  as  the  best-­‐selling   packaged  adult  soft  drink  in  U.   To  increase  purchase  frequency  and  brand   loyalty  among  J2O’s  current  users.   Moreover.   Place.  Britvic  is  the  #1  supplier  of  still  soft  drinks  in  the   UK.   Begin  a  new  marketing  launch  for  J2O  to   Team  Six-­‐y   Acuña  |  Astudillo  |  Dela  Cruz.   Competition.  hotels.   Communications.K.  while  the  latter  consists  of  restaurants.   and  venturing  into  social  network.   Its   communication   channels   include   launching   of   Britvic’s   own   products.   Price.   Threats.  Marketing  Mix  of  Britvic   Product.  Brand  Framework     BUSINESS  STRATEGY   Business   Objective   Marketing   Objective   To  achieve  dominant  market  leadership  in  UK   against  the  Coca-­‐Cola  Company.   market   share   can   be   further   increased   and   international   expansions   will   be   made   possible.   #1   supplier   of   on-­‐premise   soft   drinks   in   the   UK.   and  casual  conversations  with  friends  from   time  to  time.  Britvic   also  provides  fully  serviced  vending  machines.   With   such.  enabling  people  to  be  more  social.  Competitors  such  as  the  Coca-­‐Cola  Company  require  Britvic  to  think  of  strategic  and  innovative  ways  to   meet  the  demands  of  the  competition.   Opportunities.   utilizing   marketing   campaigns   involving   TV   advertisements.   The   former   includes   major   supermarkets  and  small  local  shops.   Consumers  want  a  drinking  brand  that  can   cater  to  different  lifestyles.  Price  ranges  from  £3.  light.00  per  bottle.   relaunching   of   brands   that   it   acquired.  and  mergers  can  also  be  seen  as  opportunities  for   the   company.   Core   markets   are   identified   to   be   the   ‘take-­‐home’   and   ‘on-­‐premise’.50-­‐£4.  For  BC  young   professionals.   poses   a   challenge   to   Britvic   in   gaining   dominance   in   the   market.   Portray  Britvic  as  a  beverage  brand  of   products  that  can  be  shared  by  people  of   different  backgrounds  in  everyday  situations.  |  Dimaano  |  Ducanes  |  Salayog  |  Santos  |  Tablante   .  investments.   and   #2   supplier   of   take-­‐home   soft   drinks   in   the   UK.Britvic:  Creating  a  Brand  Flavor Case  3 Weaknesses.  which  are  mostly  in  the  public  sector  such  as  leisure  centers.  they  enjoy  “feel-­‐good”.   Britvic   J2O   Major   Business   Issue/   Opportunity   Consumer   Insight   For  brands  like  J2O  that  has  reached  the  critical   point  of  its  life  cycle.       “I  want  to  enjoy  my  company  even  if  I  don’t   want  to  drink  alcohol”     Marketing   Strategy   Reinforcing  that  J2O  can  be  drank  anywhere  and   anytime.   Emphasize   on   the   quality   of   the   ingredients   used   to   justify   the   price   of   £2.  was  also  chosen  as  a  Diet   Pepsi  endorser  because  she  "appeals  to  our   target  audience  as  she  is  self-­‐confident  and  in   control  of  her  life.     Manufacturing:  J2O’s  White  Grape  &  Kiwi  and   Red  Grape  &  Blackcurrant  variants  were   developed  to  mimic  the  experience  of  having   red  or  white  wine  as  meal  accompaniments.  loved  ones.   History:  J2O  is  manufactured  by  Britvic  and  was   launched  in  1998.   Personality:  Social   Tone  of  Voice:  Welcoming  and  engaging   Values:  Friends.   History:  Britvic  was  initially  produced  in  1983   in  Great  Britain.   since  it  is  an  option  for  them  to  expand  in  other  countries  (not  just  in  the  US  and  Australia).  Grape  &  Kiwi   and  Winter  Berries.   Users/Endorsers:  Britvic  has  a  variety  of  users   and  endorsers  because  of  their  diverse   products  that  cater  to  different  needs.99   since   it   has   taken   a   premium  position  in  the  market.00-­‐£3.   Ingredients:  It  is  a  still  soft  drink  with  50%  fruit   juice  content.  etc.  RECOMMENDATIONS  (Britvic  in  total)   Product.  but  it  mainly  carries  soft  drinks  which   are  primarily  made  of  a  combination  of  fruit   juices."   J2O  is  the  juice  drink  made  with  premium   flavors  for  that  perfectly  blended  fruity  taste.  Exotic  Beverage  Co.   Also  consider  merger  agreements  with  other  big  companies  (e.  The  first  flavors  of  J2O  include   Orange  &  Passion  fruit.  and  if  they  want  to   expand  to  Asia.”   CREATIVE  STRATEGY   USP   Britvic  promises  to  create  and  deliver  exciting   flavors  for  the  convenience  and  enjoyment  of   the  young  and  old  alike.2%   increase  in  profits  in  its  third  quarter  results.  which  has  created  a  16.  in  Chicago).   active   Tone  of  Voice:  Laid  back  yet  credible-­‐   sounding   Value:  Tasty  refreshment  in  a  bottle     Innovating  drink  flavors  for  75  years   Brand  Idea     IV.  lychee.  Make  different  varieties  (“sugarfree”.  A.  J.  has   fully  embodied  the  refreshing  fruit  taste  of  the   beverage.   Ingredients:  Britvic  has  a  diverse  portfolio  of   drinks.g.   Place.  Expand  distribution  globally  through  giving  bottling  rights  to  companies  (i.   Product  Form:  J2O  is  a  ready-­‐to-­‐drink  beverage   that  comes  in  various  solid  colors  and  contained   in  revamped  bottles  –  slimmer  in  size  to  create   an  illusion  of  having  a  taller  and  more   sophisticated  shape.  It  is  currently  sold  in  UK  and   Ireland.  Barr)  for  potential  global  expansion   Communications.  “detoxifying”.  energizing.     Packaging:  The  new  graphic  design  of  J2O   bottles.   Price.  colorful.e.  |  Dimaano  |  Ducanes  |  Salayog  |  Santos  |  Tablante   .  featuring  a  vibrant  color  palette.  and   Apple  &  Melon.   Product  Form:  Their  products  come  in   innovative  packages  which  makes  it   convenient  for  their  consumers.  enjoyment  –  Life  is   better  lived  with  the  company  of  others   A  bottleful  of  togetherness   Proof/   Reasons  to   Believe   Brand   Tonality   Personality:  Young.  Apple  &  Mango.  “energizing”.   Dannii  Minogue.  they  can  come  up  with  flavors  made  of  local  materials.)  for  plausible  sub-­‐brands  of  Britvic.  They've  also  supported  the   World  Cup.  etc.Britvic:  Creating  a  Brand  Flavor Case  3 "reposition  the  drink  as  a  force  that  brings   people  together.  Apple  &  Blueberry  .   Users:  It  is  specially  designed  for  clubbers  who   aren’t  inclined  to  drinking  alcoholic  beverages.  During  the  Great  Depression.G.  Capitalize  on  social  media  and  utilization  of  viral  promotions.  Recent  changes  in  the  marketing   strategy  positioned  J2O  as  a  premium  brand.   as  it  was  a  practical  and  an  important  source   of  vitamin  C.   Team  Six-­‐y   Acuña  |  Astudillo  |  Dela  Cruz.  the  new  flavors  are  Orange  &   Pomegranate.  like  coconut  (in  Asia-­‐Pacific).   it  catered  to  the  nutritional  needs  of  people.   Robinsons  have  used  Old  Hethers  for  their   senior  market.     APPENDIX  2:  Health  Conscious  Females  and  Urban  Professionals   Health  conscious  females  tended  to  be:   • Aged  25-­‐44   • Affluent  -­‐  the  majority  work  full  time   • London  biased.weebly.britvic.asp?storycode=70901     • J2O  –­‐ launches-­‐j2o-­‐juice-­‐brand/2048854.article   • Britvic  J2O's  out  to  target  adults  -­‐  09  June  2005  –  http://www.  I  treat  myself  after  a  hard  day  of  particularly  when  it  comes  to  their  health  and­‐profile/where-­‐we-­‐operate/great-­‐  25.php>       REFERENCES:   • Britvic  GB’s  Official  Website  –  http://www.  |  Dimaano  |  Ducanes  |  Salayog  |  Santos  |  Tablante   • Orbis  Foods  –     • Annual  Report  2012  –     • Britvic  launches  J2O  juice  brand  -­‐  24  September  1998  –  http://www.­‐repositions-­‐J2O-­‐brand-­‐overhaul       • Packaging  Today  -­‐  New  looks  and  blends  for  Britvic  J2O  range  -­‐  11  June  2012  –   http://www.  receptive  to  new  messages   • Prepared  to  pay  more  for  quality  products  -­‐  particularly  when  they  affect  their  diet   • Heavily  tuned  into  their  health  -­‐  it  shapes  their  life  and  most  will  be  aware  of  the  need  to  drink  2-­‐3  liters  of   water  per  day     Urban  professionals  tend  to:   • Be  aged  under  45   • Have  a  family   • Work  full  time   • Live  in  major  conurbations  and  cities   • Be  ambitious   • Make  sacrifices  for  their   Team  Six-­‐y   Acuña  |  Astudillo  |  Dela  Cruz.  particularly  when  it  comes  to  water     <http://www.Britvic:  Creating  a  Brand  Flavor Case  3 APPENDICES     APPENDIX  1:  Understanding  Buckets     Oliver  Davies.  mainly  regarding  their  family  and  health   • Want  to  improve  their  health   • Buy  into­‐Brands-­‐ News/Britvic-­‐J2O-­‐s-­‐out-­‐to-­‐target-­‐adults     • Britvic  repositions  J2O  in  brand  overhaul  -­‐  23  May  2012  –   I   appreciate   casual   meet-­‐ups   with   old   friends  and  catch  up  on  what  is  happening  with  their  lives.packagingtoday.html#/1/     • From  British  Soft  Drinks  Association  (BSDA)  – http://www.   § Aspirations:  I  want  to  be  financially  self-­‐supporting  without  having  to  work  all  day  and  night  for  a  job  I  do   not  enjoy   § Relationships:   I   enjoy   the   company   of   my   good   friends   and­‐Report-­‐2012/     • Great  Britain  –­‐j2o.  mainly  work  in  the  City   • Less  a  typical  British  man   § Lifestyle:  I  balance  work  and article     Britvic  –­‐and-­‐ drink/j2o-­‐adopts-­‐premium-­‐positioning/     Top  innovations  in  drinks  packaging  -­‐  20  December  2011  –  Creating  a  Brand  Flavor Case  3 • • • • •           Soft  drinks  industry  thrives  despite  tough  economy  -­‐  12  Apr  2011  –   http://www.marketingweek.foodprocessing-­‐­‐innovations-­‐in-­‐drinks-­‐packaging     J2O  adopts  'premium'  positioning  -­‐  23  May  2012  –­‐drinks-­‐industry-­‐thrives-­‐despite-­‐tough-­‐economy/3025395.article     Team  Six-­‐y   Acuña  |  Astudillo  |  Dela     PR  Week  –  www.  J.  |  Dimaano  |  Ducanes  |  Salayog  |  Santos  |  Tablante   .marketingweek.
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