Marketing Management for Lemon & Paeroa Soft Drinks in New Zealand

The report provides an analysis of the marketing strategies for Lemon & Paeroa soft drinks in New Zealand, including STP, marketing mix, and consumer decision making process.

Running head: MARKETING MANAGEMENT
Marketing Management
Name of the Student
Name of the University
Author note

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Executive Summary
The report has helped in the overall analysis of the marketing strategies for Lemon & Paeroa
brand of soft drinks in the market. With the help of the customer decision making process
along with the marketing mix elements, the different aspects of the customers decision
making have been taken into consideration. Furthermore, the segmentation, targeting and
positioning has been taken into consideration which provided a brief overview on the
different kinds of behavioral aspects of the customers in the entire market. Moreover, the
communication slogan has been taken into consideration which is ethical in nature which will
be beneficial for the overall success of the firm in a positive manner. The main aim and
purpose of the report is to manage the overall effectiveness of the firm in such a manner
which will be beneficial for the overall success of the firm.

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Table of Contents
Introduction................................................................................................................................4
Overview of Product Category and Brand.............................................................................4
Overview of New Zealand Market Size.................................................................................4
Segmentation, Targeting and Positioning of Soft Drinks in NZ................................................4
Analysis of Market.................................................................................................................4
Analysis of Consumer Decision Making Process......................................................................7
Analysis of Buying Behaviour of Target Market...................................................................7
Types of Consumer Buying Behavior in Other Segments of Product Category....................7
Marketing Strategy.....................................................................................................................9
Marketing Mix.......................................................................................................................9
Communication Slogan............................................................................................................11
Importance and Significance of Communication Slogan.....................................................11
Conclusion................................................................................................................................12
References................................................................................................................................13
Appendices...............................................................................................................................16
Appendix 1...........................................................................................................................16
SWOT Analysis of Lemon & Paeroa...............................................................................16

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Appendix 2...........................................................................................................................16
Competition Analysis of Lemon & Paeroa......................................................................16

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Introduction
Overview of Product Category and Brand
The report helps in the overall analysis of the different kinds of soft drinks brands
which are situated in New Zealand. Furthermore, there will be introduction of the market size
of the soft drinks in the market of NZ along with the segmentation, targeting and positioning
of the soft drinks in the market as well. The respective brand which has been selected in the
respective report for conducting the STP along with analysis of the process of consumer
decision making process is Lemon & Paeroa soft drinks brand which is situated in New
Zealand.
Lemon & Paeroa is one of the soft sweet drinks which is manufactured in New
Zealand and it was created in the year 1907. The manufacturer of the product is Coca-Cola
Amatil New Zealand. This is one of the product brands which traditionally started with the
lemon juice combined with carbonated mineral water from town of Paeroa and the brand is
widely available in entire New Zealand along with Coles supermarkets in Australia. In the
present scenario, the brand is selling various other kinds of soft drinks such as orange,
pomegranate along with different other lemon soft drinks as well (Lemon & Paeroa.com.,
2018).
Overview of New Zealand Market Size
From the year 2010-2014, this can be seen that there has been a huge increase in the
consumption of the soft drinks among the different individuals in the market of New Zealand.
The entire food and beverage market in New Zealand have registered compound growth rate
of more than 3.02% during the time span of 2012-2017. The sales have increased to a huge
extent wherein the value has increased to NZD 179.22 Million in the year 2017 which is
increase of 2.92% over the 2016. With the help of this, the soft drinks market has achieved
the strongest type of performance in the year 2015.
Segmentation, Targeting and Positioning of Soft Drinks in NZ
Analysis of Market
Proper segmentation is essential in nature which will be based in dividing the entire
market in a proper manner. Lemon & Paeroa tries to use the mutli-segment kind of
positioning wherein the company will be targeting more than one kind of customers with the

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different kinds of products and service packages. Lemon & Paeroa tries to offer soft
carbonated drink which contains less sugary elements in comparison to the other competitors
in the market. The bases of the segmentation are being done as follows:
Kinds of Segmentation Criteria of Segmentation Target Segment of Lemon
& Paeroa
Geographic Region Domestic and International
Density Urban
Demographic Age 15-45 years
Gender Female and Male
Income Above average and high
earners
Occupation Students, Employees along
with professionals
Behavioural Loyalty Degree Hard core loyal individuals
Sought of the Benefits Refreshment along with
providing the customers
satisfaction
Personality of the
Customers
Easy going, determined and
ambitious (Achroll &
Kotler, 2015)
Status of the Users The regular type of users
who are present in the
market
Psychographic Lifestyle Explorer
Social Status Working class, upper and
middle-class customers in

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the market
On the other hand, the positioning is being done in such a manner which will be
beneficial for the overall success of the product in the market of New Zealand. The company
has positioned themselves as the provider of freshness in the NZ market which is provider of
freshness in the market in comparison of the other competitors in the NZ market. The
positioning of Lemon & Paeroa has allowed them in painting suitable image of themselves in
the minds of the customers which will be beneficial for the overall success of the firm
(Armstrong et al., 2014).
Figure 1: Positioning Map of Lemon & Paeroa
(Source: Created by Author)
With the implementation of the strategic positioning, this has assisted Lemon &
Paeroa in becoming competitive in nature in comparison to the other competitors in the entire
market of NZ. Furthermore, this has been seen that the Lemon & Paeroa has positioned
themselves as the sugar free drink with proper mixture of the modern flavours and taste
which will be liked by the young crowd in the entire market. With the implementation of
positioning map, this can be identified that Lemon & Paeroa has been positioned as the high

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quality along with moderate pricing aspect which will be beneficial for the overall success of
the brand in NZ and in the other parts of the countries as well (Baker, 2016).
Analysis of Consumer Decision Making Process
Analysis of Buying Behaviour of Target Market
The behaviour of the customers in the market is being influenced in through the
different kinds of factors such as social, environmental, cultural along with personal factors
which will be beneficial for receiving success in the entire competitive business environment.
Lemon & Paeroa is one of the known soft drink brands which have different
competition in the entire market that can be threat to the company in terms of gaining more
customer base. Firstly, the social factors play a major role in analysing and identifying the
different needs of the customers in such a manner which will influenced by opinions of the
leaders or the reference groups or the class or the peer groups. In the promotional programs
of Lemon & Paeroa, the main aspect is social factor that has been helpful in nature in
improving the base of the customers in the market in an effective manner (Bruwer & Li,
2017).
Secondly, the personal factors are the other aspects which play a major role in
decision making process of the customers (West, Ford & Ibrahim, 2015). In purchasing the
Lemon & Paeroa, this has been noticed that this covers all the walks of life such as from
child, young individuals along with the old people try to refresh themselves by drinking the
soft drinks as they prefer the sugar free content in their soft drinks. In the present scenario,
this has been noticed that the individuals prefer the health-conscious food and drinks which
will be beneficial for their health (Gengler & Mulvey, 2017).
From the above, this can be analysed that these are the two major factors which are
being considered in analysing the tastes and preferences of the customers in an effective
manner. This is essential for the company to understand the factors which is helpful in
controlling the buying decisions of the customers in an appropriate manner. in case of Lemon
& Paeroa, this has been noticed that social and the personal factors play a vital role in
managing the different preferences of the customers in order to become more competitive in
the entire market.

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Types of Consumer Buying Behavior in Other Segments of Product Category
There are different kinds of buying behaviour of the customers while purchasing the
different products and services. The external factors play a major role in managing the
decision-making process of the customers in such a manner which will be beneficial for the
purchase of the products in an effective manner.
Limited Decision-Making approach is one of the aspects wherein the customer is not
aware of the brand, however the products which are being sold by the brand is unique and
this is being known by the customer from a different brand as well. On the other hand, there
is other aspect which is no conscious planning or impulse buying which will be affecting the
buying behaviour of the customers in a positive or negative manner (Goworek, McGoldrick
& McGoldrick, 2017).
There are mainly six stages in the decision-making process of the customers which is
known as the consumer buying behaviour process which is required to be analysed in an
effective manner in order to meet the different needs and preferences of the customers in a
positive manner.
Figure 2: Consumer Decision Making Process

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(Source: Kotler, 2015)
Recognition of the problem is first step wherein the unmet needs are need to be
recognized in an effective manner. In the case of Lemon & Paeroa, this can be helpful for the
meeting of the needs of the external stimuli (Möller & Parvinen, 2015).
Search of information is the second step which can be used wherein there are
different possible resources of information that can be used in order to analyse the different
needs which is required to be identified effectively.
Evaluation of the Alternatives is the third step which can be adopted by the
customers in which this can help in analysing the brand satisfaction provided to the
customers. The evaluation will be based on the benefits which are being offered by the brand
along with availability of the brands along with dealer rating as well for Lemon & Paeroa
(Möller &Parvinen, 2017).
The purchase decision is the fourth step wherein this will be helpful for the customers
in evaluating the other similar brands in the market and choose from them the best.
Post-purchase decision is the other aspect in which this can be seen that the different
expectations are being discussed for the customers in an effective manner. There can be post
purchase satisfaction along with actions which are being felt by them after using or
consuming the brand (Parment, Kotler & Armstrong, 2016).
Marketing Strategy
The marketing strategy is defined as the section of the business plan that helps in
outlining the game plan for finding the suitable clients along with customers for the business
in an accurate manner. There is inclusion of the 4Ps of marketing mix which will be helpful
in analysing and dealing with different products, price, promotional activities along with
place which will be beneficial for the success of the organization in a positive manner (Philip,
2016).
Marketing Mix
Product- Lemon & Paeroa is one of the soft drink brands which is available in
different kinds of packages such as 250 ml along withn1 litre package (Tanner & Raymond,
2015). Lemon & Paeroa is one of the most preferred brands among the young generation in

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the entire New Zealand market wherein this is being adopted by the different customers in
such a manner which will be beneficial for the health-conscious individuals in the market
along with for healthy skin as well (Philip & Kotler, 2017).
Place- This is the other aspect in the marketing mix in which this has been noticed
that Lemon & Paeroa has strong presence in the market of New Zealand wherein Lemon &
Paeroa tries in believing that the soft drinks of different flavours are available in ready made
packs in supermarkets, general stores or corner stores and the main concept which has been
set in the minds of the individuals is that this is a very healthy and nutritious drink which is
present in the market as well (Pyo, 2015).
Price- The Lemon & Paeroa brand soft drinks has remained customer-centric
company and the company has tried in adopting the pricing policies which will be suitable for
attracting the different customers (Venter, Wright & Dibb, 2015). The economic policy of
pricing has been adopted by Lemon & Paeroa wherein this wants to create greater reach in
terms of value. The products are reasonable in nature along with affordable in nature which
has been helpful in maintaining the overall contribution in easy buying through customers
(Sargeant & MACQUILLIN, 2016).
Promotions- This is the other aspect in which this has been noticed that there are
different playful advertisements which has helped the brand Lemon & Paeroa in attracting the
customers. With the help of the Facebook along with Twitter aspects, these are the major
tools for advertisement which will be beneficial for the promotional activities of Lemon &
Paeroa which will be successful in nature (Schlegelmilch, 2016). There can be inclusion of
the different kinds of advertisements which will be able to promote the functions in an
effective manner.
From the above marketing mix, this can be analysed and identified that there are
different kinds of promotional activities which are ethical in nature and this can be used in
order to become more efficient in the different kinds of operations which are being performed
by the Lemon & Paeroa brand in an appropriate manner (Serrat, 2017). In order to promote
their efficiency in the market, this will be beneficial for the success of the organization in a
positive manner.

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Communication Slogan
The main aspect of the communication slogan is to attract the large number of
customers who belong from the young generation. This has been seen that in the slogan, the
main motive is to make the individuals refresh by drinking soft drinks and gain stronger
customer base in the entire market wherein there are other competitors in the market as well.
Communication Slogan of Lemon & Paeroa
“COME!!!! REFRESH YOUR TASTE”
Importance and Significance of Communication Slogan
With the help of the communication slogan, “COME!!!! REFRESH YOUR
TASTE” is the main communication slogan which is helpful for them in promoting their
products in the market and become more competitive in nature. With the assistance of the
communication slogan, the main message which is being conveyed by the company towards
the customers in the market is that the brand is creating their presence in the minds of the
individuals which will serve their needs in an effective manner.
The main aspect of the brand positioning of Lemon & Paeroa is that this is the healthy
drink which will be beneficial in meeting the needs of the customers in the present scenario

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as the young generation individuals in the present scenario are craving for sugar free soft
drinks which will be refreshing and this will be beneficial for their health as well. Lemon &
Paeroa is one such soft drink brands which is being able to serve the needs of the individuals
in an accurate manner by meeting the different kinds of demands of the customers which will
be beneficial for the overall success in the market effectively.
Furthermore, the slogan is relevant in nature as the young generation in the present
scenario prefer travelling for short trips wherein they prefer the different health drinks which
will be beneficial for their health and this will be healthy in nature as well. The main aim of
the Lemon & Paeroa is to bring differentiation approach in the different items which were
provided and sold by them to the customers in the market as this helped them in maintaining
consistency and gain competitive advantage.
Conclusion
From the above, this can be concluded that the marketing strategy developed for
Lemon & Paeroa have been useful in becoming successful in the New Zealand market in a
positive manner. With the help of the marketing mix aspects along with the segmentation,
targeting and positioning of the different products and services, this can be identified that
there are various types of external and internal influences of the market and the company
which can affect the company in both negative along with positive manner. Furthermore, the
ethical marketing communication plan has been proposed which included the different tactics
and strategies for the stated position in the market along with analysing the consumer
behaviour in a proper manner as well. With the help of communication slogan for the
company, the different approaches of becoming more consistent and sell differentiated
products are becoming popular in the market as well.

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References
Achroll, R. S., & Kotler, P. (2014). The service-dominant logic for marketing. The service-
dominant logic of marketing: Dialog, debate, and directions, 320.
Armstrong, G., Adam, S., Denize, S., & Kotler, P. (2014). Principles of marketing. Pearson
Australia.
Baker, M. J. (2016). What is marketing?. In The Marketing Book (pp. 25-42). Routledge.
Bruwer, J., & Li, E. (2017). Domain-specific market segmentation using a latent class
mixture modelling approach and wine-related lifestyle (WRL) algorithm. European
Journal of Marketing, 51(9/10), 1552-1576.
Gengler, C. E., & Mulvey, M. S. (2017). Planning pre-launch positioning: Segmentation via
willingness-to-pay and means-end brand differentiators. Journal of Brand
Management, 24(3), 230-249.
Goworek, H., McGoldrick, P. J., & McGoldrick, P. J. (2015). Retail marketing management:
Principles and practice. Harlow, UK: Pearson.
Kotler, P. (2015). Marketing Management: Concept and Application.
Möller, K., &Parvinen, P. (2015). An impact-oriented implementation approach in business
marketing research: Introduction to the Special Issue on “Implementing Strategies and
Theories of B2B Marketing and Sales Management”. Industrial Marketing
Management, 45, 3-11.
Nijssen, E. J. (2017). Entrepreneurial marketing: an effectual approach. Routledge.

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Parment, A., Kotler, P., & Armstrong, G. (2016). Principles of marketing: Scandinavian
edition. Pearson Education Limited.
Philip, K. (2016). Marketing Management-Millennium Edition.
Philip.; Keller Kotler (Kevin Lane.; Ang, Swee-Hoon.; Tan, Chin-Tiong.; Leong, Siew
Meng). (2017). Marketing management. Pearson.
Pyo, S. (2015). Integrating tourist market segmentation, targeting, and positioning using
association rules. Information Technology & Tourism, 15(3), 253-281.
Sargeant, A., & MACQUILLIN, I. (2016). Marketing for nonprofit organisations. In The
Marketing Book (pp. 555-576). Routledge.
Schlegelmilch, B. B. (2016). Segmenting Targeting and Positioning in Global Markets.
In Global Marketing Strategy (pp. 63-82). Springer, Cham.
Serrat, O. (2017). The future of social marketing. In Knowledge solutions (pp. 119-128).
Springer, Singapore.
Tanner, J., & Raymond, M. (2015). Principles of marketing. University of Minnesota
Libraries Publishing.
Venter, P., Wright, A., &Dibb, S. (2015). Performing market segmentation: a performative
perspective. Journal of Marketing Management, 31(1-2), 62-83.
Lemon & Paeroa.com (2018). Retrieved from https://www.shopnz.com/lemon-and-paeroa-lp-
99409
West, D. C., Ford, J., & Ibrahim, E. (2015). Strategic marketing: creating competitive
advantage. Oxford University Press, USA.

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Appendices
Appendix 1
SWOT Analysis of Lemon & Paeroa
Appendix 2
Competition Analysis of Lemon & Paeroa
There are different competitors of Lemon & Paeroa in which this has been noticed
that the major competitor is Parle and PepsiCo which can affect the overall brand image of
the organization in a positive manner. The main objectives of the competitors are to gauge the
overall awareness of the people towards the brand in an effective manner. In order to
understand which advertisements will be more suitable in nature, Coca-Cola tries to influence
the decisions of the customers in an effective manner.
STRENGTHS
Well conceived image of the company
Packaging is the other unique aspect
WEAKNESSES
Excessive focus is given on only one kind of
flavour
There are different vairants which have
failed
Failure to adhere to the different
regulations
OPPORTUNITIES
Growing concerns regarding the health of
the individuals
Habitual behavior of the individuals in the
market
THREATS
There is huge competition in the market
which can affect the overall efficiency of the
firm in a negative manner
SWOT