Principles of Marketing: Health Carbo Soft Drink Case Study

This report discusses the marketing planning process, PESTLE analysis, and extended marketing mix for Health Carbo Soft Drink. It also covers B2C and B2B segmentation and targeting methods for the product. The report includes a case study of Health Carbo Soft Drink, which was launched as a healthy alternative to soft drinks with 0% sugar content. The report provides insights into the importance of adopting a marketing orientation and positioning the product in the minds of the target market.

Principles of marketing

Table of Content
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Section 1:.....................................................................................................................................1
Components of marketing planning process and importance of adopting a marketing
orientation in context for health carbo soft drink .............................................................1
Components of marketing planning process are:...............................................................1
Importance of adopting a marketing orientation...............................................................2
PESTLE Analysis for health carbo soft drink and micro environmental factors in industry.2
Importance of extended marketing mix 7Ps in effective marketing planning...................3
Section 2:.....................................................................................................................................4
How health carbo soft drink product market can be segmented for consumer (B2C) and
business (B2B) markets and difference between B2C and B2B segmentation.................4
Targeting methods that can be used for B2C market and primary targeting new products in
terms of features including demographics, benefits, behaviour and customer lifestyle ...5
Meaning of positioning and suggestion on how the new soft drink products can be
positioned in minds of target market.................................................................................6
Section 3:.....................................................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Principles of marketing are used by organisations for promotion of product strategies.
Basic principles of marketing are product, price, place and promotion together referred as 4Ps or
4Ps of marketing Matrix. The 4P concept was first originated in early 1940. In 1980s, the
principles extended to 7Ps which are, people, packaging, physical evidence and process (Al-
Shamali, 2022). The report is based on health carbo, the company have headquarters in
Cumbernauld, United Kingdom. The company have annual sales of more than 1.5 billion and
provide employment to about 4300 employers. The report describes the case scenario of new soft
drink, “Health carbo soft drink”. The soft drink is have 0% sugar content as sugar is replaced
with stevia. The scenario describes about the focus of people on their health and sugar content
and responsibility of marketing managers in regards to the new drink product segmentation into
market. The report includes marketing environment and planing processes. In addition, the report
involves PESTLE analysis, competitor analysis and marketing mix analysis for health carbo soft
drink.
MAIN BODY
Section 1:
Components of marketing planning process and importance of adopting a marketing orientation
in context for health carbo soft drink
Marketing planning process is a process of developing and planning objectives and
strategies for businesses and implementing them for successive growth of the business. The
purpose of marketing planning process is to find the requirement and necessity of customers to
gain a profitable revenue by planning according to it.
Components of marketing planning process are: Market Research: Market research is the first component of marketing planning process,
which identifies the need of customers, current market trends and possible future trends
of market. For such purpose a research is performed and the results are compared,
interpreted and evaluated. Barr Britvic Soft Drinks have its own research and
development team for market research, they perform a research survey to generate the
necessary data.
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 Identify the target market: The next component of marketing planning is identification of
targeted audience. The whole population of people are divided into distinct segmentations
according to their preferences. Health carbo was developed with focus on teenagers and
young generations. About the product: The product, soft drink in the current scenario should have relevance
with market trends. The health carbo was launched with respect to the enhanced health
concern of youngsters (Gbadamosi, 2019). Competition tolerance: The company should focus on competition as substitutes are
available in market with varieties. So businesses should focus on uniqueness as well as
quality of product to withstand the competition. The health carbo was designed with
uniqueness in its sugar content.
Importance of adopting a marketing orientation
Generating revenues: Marketing research identifies the consumer's need before making
the product. This planning is essential for generating the revenues for company.
Increased market share: Market share of company is linked with large base of customers.
A large population of customer is developed by quality of services.
Loyalty to Brand: Marketing research focuses on the loyalty of customer, which is linked
with satisfaction of customers. Increase in customer satisfaction promotes loyalty of them
towards the brand.
PESTLE Analysis for health carbo soft drink and micro environmental factors in industry
Pestle analysis is used for attaining a circumstantial information about the direction of the
business and also about the possible risks for the business by analysing the macro environment
of the business. Health carbo is the new product launched to be an healthy alternative to soft
drinks. Its pestle analysis reveals the following aspects: Political factors: Health carbo being a company dealing in food and beverage items and
want to reach to many parts of the world, this makes it subjective to different types of
political environments. Therefore, to tackle with the diverse political environments and
the risks linked with it the company needs to analyse the situation closely and formulate
strategies accordingly (Jiang, Rosati, Chai and Feng, 2020).
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 Economic factor: Health carbo is impacted by the macro environment factors some of
which are the inflation rates, industry's economy, investment rates, numbers of investors
etc. These factors can affect the economic stability of the beverage industry. Social factor: It has been observed lately that now a days the people are becoming more
health conscious due to which they are becoming very calculative about their diet. The
soft drinks are considered to be containing very high amounts of sugar and thus are being
avoided by the people. But as the new product is launched for providing a healthy
alternative to soft drinks so health carbo will be less affected by this factor Technological factor: New and updated technology is being used by the company in
order to ensure increased efficient use of resources during the production process (Greer,
2018 ). Environmental factors: Health carbo ensures as much conservation of the environment
as possible by formulating and implementing efficient waste disposal strategies. Legal factor: Health carbo before entering a new market place analyses the various legal
factors like Anti-trust law, consumer protection and health and safety laws etc which can
pose a hindrance to the product.
Micro environmental factors Competitors: The new product of Health carbo will be experiencing a major competition
in the market. As the population is becoming more health conscious, many companies
have launched several drink depicting them as a healthy alternative for carbonated drinks.
Thus health carbo has to face a lot of competition in the market (Adams, Freitas and
Fontana, 2019). Suppliers: The pre existing companies are dealing in many countries as they have a large
number of suppliers to carry out supplies in various countries (Shruti and et.al.,2020).
Being a new product Health carbo will require to build a huge network of suppliers
across the world for itself. In order to ensure regular supply and extended reach of the
product.
Importance of extended marketing mix 7Ps in effective marketing planning
Extended marketing mix 7Ps are essential in effective planning of marketing by following
means:
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 In development of new products: The organisation can have knowledge about current
trends of market to develop new products. Knowledge of current market trends is helpful
in captivating the crowd towards the services of organisation and its products. Differentiation: The organisation can undergo some differentiation in their products to
stand within the market.
 Improvement in business: Business improvement process involves improving the current
working of the organisation (Shafiee, Gheidi and Khorrami, 2020). Identification of
faults and flaws are essential in business improvement which involves their rectification
and implementation.
 Product portfolio development: Marketing mix assist in analysis of product as it defines
the necessity of products for business and inform about its liability in terms of
organisation, that is weather it can increase the liability of company or not. The ability of
product to generate market revenue is also evaluated. If the product is generating loss, it
is closed permanently.
Section 2:
How health carbo soft drink product market can be segmented for consumer (B2C) and business
(B2B) markets and difference between B2C and B2B segmentation
Segmentation is the process of dividing market place into distinct groups as per the
homogeneity of groups. The people with similar nature are placed into one group.
Business to Customer (B2C): Business to Customer is considered when the organisation
is having business directly with the customers.
Business to Business (B2B): Business to Business is considered when the organisation is
having business in terms of sale and purchasing with other business unit.
Basis of segmentation B2B B2C
Sales Health carbo deals with other
business units in terms of bulk
products. In B2B business, the
other business unit behave as
mediator to deliver customers
The health carbo company
deals directly with the
customers too but their
majority of sales is dependent
on other business unit. As the
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the products. quantity customers want is
quiet low.
Timeline Health carbo gives a timeline
to other business units to pay
fully amount of the product
they have purchased as the
amount of their purchasing is
huge and it takes time to pay
full amount. The company take
some advance amount in order
to complete the whole
delivery.
Health carbo in B2C business
doesn't give any timeline for
payment to customers on small
quantity products. The
payment is made with product
purchasing. Here the
customers directly purchase
products from company rather
than dealing with other
retailers.
Price The price settled for B2B
business is quiet low. Price
settled for per bottle of health
carbo is low for selling it in
bulk quantity.
The price settled for B2C
business is high in comparison
to B2B business. The small
quantity is sold in B2C
business so the comparative
price is high here.
Targeting methods that can be used for B2C market and primary targeting new products in
terms of features including demographics, benefits, behaviour and customer lifestyle
Targeting is the identification of appropriate customer for business that is looking for the
customer who can purchase the soft drink. Health carbo can reach to its appropriate customer by
following ways:
 Profit: The Health carbo business organisation needs to identify the requirement of its
customer and should plan an appropriate strategies for the product development and
marketing. If the product is designed as per the requirement of customers then their will
be an enhanced sell of the products (Zhang, 2021). As health carbo identified that its
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customers are looking for a healthy drink with low sugar content and so they planned the
health carbo soft drink in accordance to it.
 Size: The organisations need to look size of market as well as the strength of people who
require, like and want to consume the products. The health carbo found its group of
people who can buy healthy drink and want to consume it. The size of market is initially
small but the marketing can enhance the size of market. Customer reachability: The requirement and nature of liking is different of
segmentations and person to person. So it is difficult for health carbo to design product as
per the liking of each and every customer. So they divided people into the segments to
reach the customers.
Customer targeting characteristics:
 Lifestyle: Customer segments are formed as per the living standards, income and health
priorities of people. The customer who were targeted for health carbo soft drink showed
health consciousness, high standards of living and high spending nature of income on
drinks (Jamalnia, A. and et. al., 2019).
 Benefits: The customer segments who were targeted showed health consciousness. The
customer were ready to pay additional amount on health carbo drink. The company
decided to sell the product on high margin.
 Demographics: The customers were differentiated on the behalf of their age, gender,
qualification, occupation and location. The health carbo specially focused on location,
age and occupation. The age group decided was 17-40 years old people. Additionally
people with high income and living in a particular area was selected. Behavioural: Customers were segmented on their behaviour basis or liking. As health
carbo determined that its customers are looking for healthy soft drinks.
Meaning of positioning and suggestion on how the new soft drink products can be positioned in
minds of target market
Positioning is the term used for the process of creating the good image of brand in
customer's perception (Kepczynski and et. al., 2018). Positioning is the last stage of STP
model. The process followed by health carbo in creating the image in customer's mind was as:
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 Identification of customers: The first step which should be followed before designing or
launching a product is to identify the need of customers and the strength of customers
who have same requirements.
 Evaluation of competition: The organisation should identify the competition that can
effect its business. If there are multiple competitors for same products then the product
may not get popular or create profit. Health carbo designed a unique soft drink which was
having a less competition in market and a high chances of market revenue.
 Customer evaluation: The purchasing power, pattern and behaviour of customer is
evaluated here. Health carbo identified that the kind of soft drink they have launched is
preferred by high income people and majorly by teenagers and youngsters. So they
decided to target these people (Lacy-Nichols and Marten, 2021).
 Position establishment: This stage consider the channel by which the organisation wants
to convey its message regarding the new product. Health carbo use communication
methods like advertisements, social media advertisement, direct marketing and other
campaigns of marketing.
 Monitoring the position: The process chosen by organisation is monitored to evaluate
that the implementation has been effective or not. The actions are taken for gap. Health
carbo evaluate its sale indicators, performance and growth in market by digital tools and
tactics of different kinds.
Section 3:
Extended 7Ps marketing mix for the soft drink
7Ps Health carbo soft drink
Product Products are considered as the things which can be felt and
touched, in short it is a tangible thing. Services are also
considered as the products. The new product, that is a new soft
drink launched in the market is Health carbo soft drink. The soft
drink is made with zero percent sugar as sugar is replaced with
stevia. The soft drink was made with perception of health and
wellness.
Place The place is where the products including services are sold. The
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business organisation who wants to develop its business needs to
develop a place for sale of its products. Place have a key role in
sale enhancement. Health carbo soft drink is using multiple stores
for selling its product. The stores are at different locations like
malls, ware houses etc. They also use online selling sites.
Price The Price is the rate at which products are sold. The product's
price depends upon cost of manufacturing, expenses on
packaging and distribution of products. Health carbo soft drink
has set a definite price for its products. The company is
distributing the products on two prices, one for distributors (B2B)
on lower prices and another on for direct customers (B2C) on
comparatively higher prices (Georgiadis, Elekidis and
Georgiadis, 2021).
Promotion Promotion includes of all the process that is done with the
perspective of boosting sale of products. A small changes within
the promotion services can contribute significantly in product
sales. Health carbo soft drink is using strategies like
advertisement via mass media, social sites, using sales man and
women etc. The online referral with some exciting offers is also a
strategy of health carbo for promoting the sales of soft drink.
People This P of marketing involves people of business who are
contributing in sales, marketing strategies and activities of
business. The people can be inside and outside of the businesses.
The people are essential asset of the organisation as they
contribute in achieving the goals of business. The health carbo
organisation hires people who have desired skills for marketing
and for working in the organisation. The organisation facilitate
training for the new employees to develop their skills and several
training enhancement sessions for existing employees.
Physical evidence Physical evidences of marketing mix refer to to the environment
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which is a point of attraction for customers. The right elements
contribute in attracting desired targeted customers. Physical
evidences are used to attract the desired segment of people and to
achieve the desired outcomes (Mustaqimah, Hartoyo and
Nurmalina, 2019). Health carbo have used attracting ambience
for its store including hygienic and safety hazards to maintain the
standard of products. The organisation have incorporated well
furnished and modern technologies plus furnitures for its offices.
Process Process refer to the way of delivering the processes and services
to the distributors, other business organisations and to customers.
The efficient process ensures the standard of services, it saves
time and improve working efficiency. The health carbo works
conveniently, the customers can get the soft drink from any store
as well as from online purchasing site too.
CONCLUSION
The above discussion concludes that the principles of marketing are essential in
identification of desired targeted segments of people and in identification of their needs. The
marketing plans are essential in identification and development of strategies for an organisation
to achieve their desired goals. PESTAL Analysis is beneficial in estimation of factors which
have effect on organisation's working. Micro environmental factors have a role in affecting
working of the organisation, it involves factors like competitors and supplies. The 7Ps of
marketing mix model have role in understanding the pattern of purchasing of customers. It
involves understanding the population's need and nature and taking corresponding action
according to it. The STP model are beneficial for an organisation in segmenting, aiming and
positioning the customers. The report is based on the marketing mix analysis of health carbo soft
drink.
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REFERENCES
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Zhang, Z., 2021, December. The Application of Marketing Mix to Healthy Drinks. In 2021 3rd
International Conference on Economic Management and Cultural Industry (ICEMCI
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Georgiadis, G.P., Elekidis, A.P. and Georgiadis, M.C., 2021. Optimal production planning and
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Mustaqimah, A., Hartoyo, H. and Nurmalina, R., 2019. Marketing mix effect towards customer
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