Case Presentation on Britvic PLC


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Case Presentation on Britvic PLC

  1. 1. TEAM ONE Hoo Xin Yi Vong Sin Yee Annabel Tang Ong Crystal Wong Xun Min
  2. 2. 1)Overview of issue 2)Rationale for choosing drench 3)Analysis of drench using 4Ps 4)Recommended course of actions 5)Evaluation of recommendations 6)Conclusion
  3. 3. • Second largest company in UK’s soft drink industry • Manufactures home brands • Signing bottling deals
  4. 4. 1938 – Britvic establishment 1987 – Bottling Arrangement for Pepsi & 7up 1995 – Acquired Robinsons 1998 – Launched J20 2006 – Launched Drench
  5. 5. • Bottling deals – Pepsi & Gatorade Over- reliance • Few know the name Britvic Low Brand Awareness • Consumer preferences – increase in health consciousness and demand for traditional drinks Changing trends • The Coca Cola company, CabanaCompetitors
  6. 6. Bottling deals (Pepsi & Gatorade) • Continually renewing bottling rights with PepsiCo which may lead to overdependence •May lead to complacency in the long run
  7. 7. • Britvic?? Oh, you mean PEPSI, 7UP, DRENCH, GATORADE! • IT DOESNT MATTER! VS.
  8. 8. • More health conscious Don’t want sugary carbonates, hence a need to shift marketing focus to healthier options
  9. 9. • More environmentally conscious Concerned whether the following are “green” 1. Product 2. Packaging 3. Manufacturing process
  10. 10. • Main competitor : The Coca-Cola Company • Others: GlaxoSmithKline, Silver Spring Mineral Water Company, Boost, Fentimans
  11. 11. 1. 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.
  12. 12. • 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%)
  13. 13. Over-reliance on star products • Bottling deals Eg. Pepsi Co • Growth will ultimately slow down Solution: Invest more in question marks • Drench is worth nurturing; it has potential • Sales increased by 107% following the 2008 campaign
  14. 14. Year Production (million litres) UK waters consumed 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
  15. 15. Increasing Market Volume •The UK bottled water market grew by 6.5% in 2008 •In 2013, the UK bottled water market is forecast to have a volume of 3.7 billion liters, an increase of 38.9% since 2008.
  16. 16. Increasing health awareness among consumers • “We drink 200 times as much bottled water today as we did back then (1970s) and the market in Britain is worth close to £2 billion.” (BBC news) • “More consumers are increasing their daily intake of water ...... Consumers also see it as a lifestyle choice, forsaking caffeine and carbonates in favour of water, which is innocent of any type of ‘health-crime” (Mintel)
  17. 17. Still flavored (11.9%), 11.90% Still unflavored (47.3%), 47.30% Sparkling flavored (4.8%), 4.80% Sparkling unflavored (36%), 36% Profitable
  18. 18. Cheaper alternative for consumers •UK bottled water sales grew by 1.4%, according to drinks consultancy Zenith International. •UK sales for soft drinks fell by 2%.
  19. 19. Product Price Place Place
  20. 20. • variety of sizes for every purpose 500 ml 750 ml 1500 ml 2000 ml
  21. 21. • 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
  22. 22. • Bottle has a nice effect and rather unique as compared to other bottles’ design. • Fresh, crisp and hydrating taste
  23. 23. • Bottles contain 10% rPET (recycled polyethylene terephthalate) which can be recycled to make into new drench bottles.
  24. 24. •Describes its water’s purpose very adequately. •Easy to Remember, Pronounce, Recognise. • Extendable. Spring water OUR BRAIN IS 75% WATER! Fruit Juices
  25. 25. Drench comes straight from the pristine brooks of their native land, Yorkshire. 1.Conscience free 2.Psychological factor of patriotism
  26. 26. Product Price Place Place
  27. 27. Drench is currently sold in various supermarkets, namely Tesco, Asda, Morrison’s, Somerfield and Waitrose. Britvic has been working with two supply chain specialists to create a rail freight delivery solution, replacing daily road journeys with the result that up to 50 lorry loads will be taken off the road each day. This will reduce CO2 emissions by 3,285 tonnes per year.
  28. 28. Advertising Public relations Personal Selling Sales promotion
  29. 29. Traditional Media • Television adverts Social Media • Youtube • Facebook
  30. 30. Raise the brand awareness of Drench Reduce Britvic’s dependence on the soft drink market Increase Britvic’s market share in the bottled water industry.
  31. 31. Understanding the marketplace and customer needs and wants Designing a customer-driven marketing strategy Construct an integrated marketing program that delivers superior value
  32. 32. Increasing health-consciousness Dubious quality of tap water Convenience
  33. 33. Understanding the marketplace and customer needs and wants Designing a customer-driven marketing strategy Construct an integrated marketing program that delivers superior value
  34. 34. Differentiation and positioning Segmentation and targeting
  35. 35. Understanding the marketplace and customer needs and wants Designing a customer-driven marketing strategy Construct an integrated marketing program that delivers superior value
  36. 36. Design Packaging
  37. 37. Lunchbox series! Survival series! MEGA series!
  38. 38. Advertising Public relations Personal Selling Sales promotion
  39. 39. • Convince consumers that bottled water is worth buying • Competition may increase in the bottled water market
  40. 40. • 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 •Increasing environmentalism •Sustainable marketing concept: •Present needs of consumers and Britvic •Future needs of consumers and Britvic
  41. 41. • Biodegradable plastic • Britvic bottle recycling points at shopping malls • Water coolers at shopping malls, school canteens
  42. 42. • Campaign can be expanded in future to market Juicy Drench as well – Flavoured waters as an alternative to other soft drinks.
  43. 43. • Tap into a emerging market • Diversify • Sustainable