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 Britvics 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 Britvics 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 Britvics 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 companys diverse brand portfolio is also a valuable element as it enables the company to reach a wider market. Team Six-y Acua | Astudillo | Dela Cruz, J. | Dimaano | Ducanes | Salayog | Santos | Tablante

Britvic: Creating a Brand Flavor Case 3 Weaknesses. Unfortunately, Britvic lacks global presence especially in Eastern countries. Moreover, due to its affiliation and acquisition of other company brands, Britvics individuality as a brand continues to fade. Opportunities. The aforementioned acquisitions, investments, and mergers can also be seen as opportunities for the company. With such, market share can be further increased and international expansions will be made possible, thus boosting its global position. Threats. Competition, as with any other companies, poses a challenge to Britvic in gaining dominance in the market. Competitors such as the Coca-Cola Company require Britvic to think of strategic and innovative ways to meet the demands of the competition. C. Marketing Mix of Britvic Product. 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. Price. Price ranges from 3.50-4.00 per bottle. Place. Core markets are identified to be the take-home and on-premise. The former includes major supermarkets and small local shops, while the latter consists of restaurants, pubs, hotels, and cinemas. Britvic also provides fully serviced vending machines, which are mostly in the public sector such as leisure centers. Communications. Committed to creating and building brands that delight consumers always and to maintain a strong track record of innovation in products and packaging, Britvic is the #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. Its communication channels include launching of Britvics own products, relaunching of brands that it acquired, utilizing marketing campaigns involving TV advertisements, and venturing into social network. D. Brand Framework BUSINESS STRATEGY Business Objective Marketing Objective To achieve dominant market leadership in UK against the Coca-Cola Company. To increase frequency of purchase of Britvics brands among occasional/seasonal buyers and steal a portion of Coca-Colas loyal consumers in UK. 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. Consumers want a drinking brand that can cater to different lifestyles. For BC young professionals, they enjoy feel-good, light, and casual conversations with friends from time to time. Portray Britvic as a beverage brand of products that can be shared by people of different backgrounds in everyday situations. To remain as the dominant leader in the market by continuing to brand itself as the best-selling packaged adult soft drink in U.K. pubs & bars. To increase purchase frequency and brand loyalty among J2Os current users. Britvic J2O

Major Business Issue/ Opportunity Consumer Insight

For brands like J2O that has reached the critical point of its life cycle, it is a challenge to keep the users hooked. I want to enjoy my company even if I dont want to drink alcohol

Marketing Strategy

Reinforcing that J2O can be drank anywhere and anytime, enabling people to be more social. Begin a new marketing launch for J2O to

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Britvic: Creating a Brand Flavor Case 3 "reposition the drink as a force that brings people together. CREATIVE STRATEGY USP Britvic promises to create and deliver exciting flavors for the convenience and enjoyment of the young and old alike. History: Britvic was initially produced in 1983 in Great Britain. During the Great Depression, it catered to the nutritional needs of people, as it was a practical and an important source of vitamin C. Ingredients: Britvic has a diverse portfolio of drinks, but it mainly carries soft drinks which are primarily made of a combination of fruit juices. Product Form: Their products come in innovative packages which makes it convenient for their consumers. Users/Endorsers: Britvic has a variety of users and endorsers because of their diverse products that cater to different needs. Robinsons have used Old Hethers for their senior market. They've also supported the World Cup, which has created a 16.2% increase in profits in its third quarter results. Dannii Minogue, 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." J2O is the juice drink made with premium flavors for that perfectly blended fruity taste. History: J2O is manufactured by Britvic and was launched in 1998. It is currently sold in UK and Ireland. Recent changes in the marketing strategy positioned J2O as a premium brand. Ingredients: It is a still soft drink with 50% fruit juice content. The first flavors of J2O include Orange & Passion fruit, Apple & Mango, and Apple & Melon; the new flavors are Orange & Pomegranate, Apple & Blueberry , Grape & Kiwi and Winter Berries. 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. Users: It is specially designed for clubbers who arent inclined to drinking alcoholic beverages. Manufacturing: J2Os White Grape & Kiwi and Red Grape & Blackcurrant variants were developed to mimic the experience of having red or white wine as meal accompaniments. Packaging: The new graphic design of J2O bottles, featuring a vibrant color palette, has fully embodied the refreshing fruit taste of the beverage. Personality: Social Tone of Voice: Welcoming and engaging Values: Friends, loved ones, enjoyment Life is better lived with the company of others A bottleful of togetherness

Proof/ Reasons to Believe

Brand Tonality

Personality: Young, colorful, energizing, active Tone of Voice: Laid back yet credible- sounding Value: Tasty refreshment in a bottle Innovating drink flavors for 75 years

Brand Idea

IV. RECOMMENDATIONS (Britvic in total) Product. Make different varieties (sugarfree, energizing, detoxifying, etc.) for plausible sub-brands of Britvic; since it is an option for them to expand in other countries (not just in the US and Australia), and if they want to expand to Asia, they can come up with flavors made of local materials, like coconut (in Asia-Pacific), lychee, etc. Price. Emphasize on the quality of the ingredients used to justify the price of 2.00-3.99 since it has taken a premium position in the market. Place. Expand distribution globally through giving bottling rights to companies (i.e. Exotic Beverage Co. in Chicago). Also consider merger agreements with other big companies (e.g. A.G. Barr) for potential global expansion Communications. Capitalize on social media and utilization of viral promotions. Team Six-y Acua | Astudillo | Dela Cruz, J. | Dimaano | Ducanes | Salayog | Santos | Tablante

Britvic: Creating a Brand Flavor Case 3 APPENDICES APPENDIX 1: Understanding Buckets Oliver Davies, 25, a typical British man Lifestyle: I balance work and play; I treat myself after a hard day of work. 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 family; I appreciate casual meet-ups with old friends and catch up on what is happening with their lives. 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, mainly work in the City Less traditional, particularly when it comes to their health and vitality; 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 career, mainly regarding their family and health Want to improve their health Buy into brands, particularly when it comes to water <http://www.britviclearningzone.com/marketing/a_z/index.php> REFERENCES: Britvic GBs Official Website http://www.britvic.co.uk/ Annual Report 2012 http://www.britvic.co.uk/Reports/Annual-Report-2012/index.html#/1/ From British Soft Drinks Association (BSDA) http://www.britishsoftdrinks.com/PDF/UK%20soft%20drinks%20report%202012.pdf Orbis Foods http://orbisfoods.weebly.com/britvic-j2o.html Britvic launches J2O juice brand - 24 September 1998 http://www.marketingweek.co.uk/britvic- launches-j2o-juice-brand/2048854.article Britvic J2O's out to target adults - 09 June 2005 http://www.morningadvertiser.co.uk/Drinks-Brands- News/Britvic-J2O-s-out-to-target-adults Britvic repositions J2O in brand overhaul - 23 May 2012 http://www.marketingmagazine.co.uk/news/1133252/Britvic-repositions-J2O-brand-overhaul Packaging Today - New looks and blends for Britvic J2O range - 11 June 2012 http://www.packagingtoday.co.uk/story.asp?storycode=70901 J2O https://www.facebook.com/J2O Great Britain http://www.britvic.com/company-profile/where-we-operate/great-britain.aspx Team Six-y Acua | Astudillo | Dela Cruz, J. | Dimaano | Ducanes | Salayog | Santos | Tablante

Britvic: Creating a Brand Flavor Case 3 Soft drinks industry thrives despite tough economy - 12 Apr 2011 http://www.marketingweek.co.uk/soft-drinks-industry-thrives-despite-tough-economy/3025395.article Britvic www.marketingweek.co.uk/brands/britvic/ PR Week www.prweek.com Top innovations in drinks packaging - 20 December 2011 http://www.foodprocessing- technology.com/features/featuretop-innovations-in-drinks-packaging J2O adopts 'premium' positioning - 23 May 2012 http://www.marketingweek.co.uk/sectors/food-and- drink/j2o-adopts-premium-positioning/4001843.article

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