Marketing Case
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Four Ps
There are four major elements will have an influence on the marketing decision of company Britvic;
The first one is product. Britvic has its own comprehensive list of proprietary brands, their soft-drinks market is structured into two main categories-carbonates and stills. This is called product mix refers to most organizations sell a range of products aimed at different segments of the marketplace. Therefore width of the product in Britvic is two kinds of different function drinks, the depth of that in Britvic include Pepsi, 7UP, Tango, Red Devil, R Whites, Idris, Shandy Bass, Purdeys, Britvic, Britvic 55, Robinsons, Fruit Shoo, J20, Drench, Really Wild Drinks, Lime Grove, Be Natural, Pennine Spring, V Water. Those are drinks, so the consistency of various product lines in Britvic in terms of usage, production, and distribution are closely related.
And product life cycles have different four stages that is introduction, growth, maturity and decline stage. In stage one the future is when sales start at zero and profits are negative, there are sales but do not make money, so manager should underprice and do more promotional activities. In stage two the future is when sales rise rapidly and profits reach a peak and then start to decline, due to more competitors enter the market, manager had better do moderate investment in promotion and set higher price to develop brand loyalty for customers. In stage three the characteristic is when the sales curve peaks and starts to decline and profits continue to fall, therefore the price of product should at a relatively low level, at the same time, company headquarters should enable advertiser and distributors to develop promotions , because it is important for company to look for a new market. In stage four the characteristic is the sales of products will fall rapidly for the company planning to phase out the products, in the period of this time, the company only eliminate marginal distributors to harvest the products remaining value.
The second one is price. The company will accord their different operation objectives to take corresponding action. So the choice of pricing strategies of a company is an important element in product mix which reflected in four aspects: First, price can adjust and induce market demand, whether price is reasonable or not, it will have the effect of strengthening and weakening on marketing mix, directly affect the image, acceptance level by customers and outlet of product, reasonable prices produce good stimulative effect to customers psychology. Secondly, price is an important means of marketing competition. Thirdly, price affect the achievement of corporate marketing goals, because reasonable price contribute to reducing product costs, improving quality of products by improving technology, promoting enterprise actively meet the needs of customers, adopting to market competition