Principle of Marketing: Marketing Planning, Segmentation, Targeting, and Positioning for Sugar Free Soft Drink

This report discusses the marketing planning process, PESTLE analysis, segmentation, targeting, and positioning for Sugar Free soft drink. It explains the importance of adopting a marketing orientation and its application to the business. The report also applies the marketing mix in the selected situation to show situational awareness in regard to the brand's marketing and business.

PRINCIPLE OF
MARKETING
3000 WORDS

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Section 1 – Marketing environment and Planning Process.........................................................3
a. Components of marketing planning process and outlining the marketing context for the
new soft drink product with the importance of adopting a marketing orientation and its
application..........................................................................................................................3
b. Brief environmental audit in the form of a PESTLE analysis of UK for the new soft
drink- “Sugar Free” and highlighting the micro- environmental factors such as recent
competitor activity.............................................................................................................5
c. Explaining how the extended marketing mix contributes to effective marketing planning.
...........................................................................................................................................6
Section B- Segmentation, Targeting and Positioning..................................................................7
a. Explaining how the market for Sugar Free might be segmented for consumer (B2C) and
business (B2B) markets and to what extent does the approaches differ between B2C and
B2B segmentation..............................................................................................................7
b. Discussing the targeting methods that could be used for the B2C markets...................7
c. Explaining the meaning of the term positioning and how the new soft drink brand could
be positioned in the minds of the target market.................................................................8
Section C – Marketing Mix Analysis...........................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES................................................................................................................................1

INTRODUCTION
The current report focuses on various health concerns due to the added sugar in the soft
drinks and effect on the environment due to the use of plastic bottles. The present report will
explain the components of marketing planning process and PESTLE analysis for the soft drink
product including the micro- environmental factors such as dominant competitors in the industry
and current competitive environment. It will explain the importance of adopting a marketing
orientation and its application to the business. The report will explain the concepts of
segmentation, targeting and positioning to respond to the marketing problems. It will apply the
marketing mix in the selected situation to show situational awareness in regard to the brands
marketing and business.
MAIN BODY
The principles of marketing can be defined as the ideas and strategies that an organization
implements for an effective marketing strategy. The base on which the products are built and
promoted in the market (Bonaparte, 2019). For addressing against the issues related to the health
and environment, a new soft drink brand Sugar Free is suggested for Calypso Soft Drinks Private
Limited that contains zero added sugar and use recycles plastic for manufacturing the bottles in
an effort to contribute towards the environmental concerns. The beverage contains sugar free
sweeteners like aspartame and ace-k. It can also be consumed by the restricted people such as
diabetic patients and people who chose to have low calorie intake.
Section 1 – Marketing environment and Planning Process
The marketing planning process begins with explaining the industry's business
environment and its position in the competitive market (Camilleri, 2018). After that it moves to
realizing the needs for the market research, target markets and marketing goals of the
organization.
a. Components of marketing planning process and outlining the marketing
context for the new soft drink product with the importance of adopting a
marketing orientation and its application.
To create an effective business strategy and ensure a successful result of the business
project of the sugar free drink, it will require a study of marketing planning process and its
components (Samiee and Chirapanda, 2019). These components are:

Market research-
Researching market and identifying the target customers and understanding their
behaviour and market nature is very important before entering a particular market or launching a
new product or service in that market.
Target market-
Targeting a market that has perfect potential buyers for the product is very important
before introducing the product and reducing the chance of failure.
Positioning-
Developing a strong brand message and communication in order to attract the customers
for a sugar free healthy drink. It requires proper positioning so that the customer can frequently
reach to buy the product.
Competitive analysis-
Knowing the competitors is essential for the company before introducing a new line of
product and determining how the product is different from the competitors. It may help the
organization for better positioning of the brand and stand out from the competition.
Market strategy-
The organization may use various channels for promoting the new product. Essential data
of the audience may be easily available through internet and social media and sources such as
television, billboards, internet and e-mail may be used for marketing (Puşcaşu, 2018). Effective
and impressive message regarding the product must be conveyed.
Budget-
An adequate budget may be pre decided so that the entire planning goes on a fixed
criteria and strategies are made inside the budget line. The organization may collaborate with
other brand to manage the cost.
A market orientation lets the organization to identify the differences in its customers and
their varied needs. It pays concern on how the customers feel about the product and their level of
satisfaction after consuming the products. With the help of market orientation, the organization
may solve concerns raised by the consumers and make the required improvements in the new
product. This ensures loyalty among the customers and maintain high customer satisfaction and
customer retention.

b. Brief environmental audit in the form of a PESTLE analysis of UK for the new
soft drink- “Sugar Free” and highlighting the micro- environmental factors
such as recent competitor activity.
For understanding the business environment and identifying the conditions that may
affect the organization's objective of introducing a new kind of soft drink in the UK, a brief
PESTLE analysis may be applied (Khalid and Rahman, 2019). It will outline all the factors that
will affect the organization's practices and its business in the particular market. These factors are-
Political factors-
It includes the political environment and political behaviours of the market place. The
current political environment of UK is very stable and favourable for businesses that are
concerned towards the environmental issues and health of the people. Hence, it is an
advantageous factor for Sugar Free.
Economic factors-
It outlines the economic conditions that affect the business strategies. The current
economic condition of UK is very stable and the population has a high financial status. It is very
beneficial for the organization as the customers are capable of buying the soft drink at a
premium rate as well.
Social factors-
These factors relate to the social environment and population demographics of the market
(Khalid and Rahman, 2019). Calypso may find it easy to influence the people to buy its new
brand in the current social environment of UK.
Technology factor-
These factors refer to the available technology and innovations in the market. UK has a
developed technological infrastructure and hence, it may be helpful for the production,
maintenance and distribution function of the organization.
Legal factors-
These are the law enforcements that influence the business operations of an organization
in a particular market place. UK has simple legal policies that may be easily followed by the
organization for its operations in the market.
Environmental factors-

It includes all the factors that influence the surrounding environment such as tourism,
agriculture, climate and disaster chances etc. UK has favourable environmental conditions that
may make it easy for the organization to set up or introduce a new brand and perform smooth
operations.
After the pandemic phase, the people have become more concerned towards heath and
environment. Many big and established brands have introduced healthy drinks and environment
friendly products. Sugar Free may face a tough competition from these companies (Camilleri,
2018). The recent competition is intense and a lot of new brands are striving to find a place in the
market which may prove to be a big threat for Sugar Free.
c. Explaining how the extended marketing mix contributes to effective marketing
planning.
The marketing mix defines the basics of product marketing but does not include the
service marketing. In this case the extended marketing mix comes into play and explains the
importance of strengthening the marketing mix and contribute in building an effective marketing
planning (Wichmann and et.al., 2022). An extended marketing mix strengthens the marketing
mix by adding three more P's to the first four P's. These P'S are-
People-
Describes the employees or people who play an important role in contributing to the
success of the brand. It defines their contribution and importance in the success of te
organization.
Processes-
It identifies the process and strategies to meet the customer expectations. It considers the
planning of delivering a great customer experience every time and maintain a good customer
retention rate and create a loyal customer base (Bahl and Chandra, 2018).
Physical evidence-
It points out the physical components that are required for completing the marketing mix.
It includes all the physical efforts that the organization requires during its operations in the
market.

Section B- Segmentation, Targeting and Positioning
a. Explaining how the market for Sugar Free might be segmented for consumer
(B2C) and business (B2B) markets and to what extent does the approaches
differ between B2C and B2B segmentation.
Market segmentation helps the company to understand the market environment and
identify the target audience and the ideal customers. There are different types of market
segmentations that may be applied in context of the Sugar Free.
For business to consumers (B2C), demographic market segmentation may be used. It
refers to dividing the audience on the basis of observable people based differences such as age
groups, education level, gender, income level, religion, occupation, marital status and family
type for accurate selection of the most appropriate customers (Jílková, 2020).
For business to business (B2B), geographic segmentation may be beneficial. It refers to
dividing the areas based on geographical locations. The organization may collaborate with local
retailers and distributors in order to make easy reach to the customers and fulfil their needs
(Cortez, Clarke and Freytag, 2021). The needs may differ based on locations and the
organization may plan specific strategies to understand those needs and promote location
specified marketing.
In the B2B segmentation, the operations happen between two businesses and it creates a
value chain. Two businesses collaborate for the purpose of supporting each other and achieving
the business goals. Whereas in B2C the transaction takes place between business and the
consumers and the individual as an end customer. In the B2B process the purchases are larger in
quantity and the transaction amount is also very high. It is a longer and a complex approach. On
the other hand, in the B2C process, the purchases are as low as one unit and is a direct end to end
interaction with the consumers.
b. Discussing the targeting methods that could be used for the B2C markets.
Targeting method can be defined as an evaluation of each segment of the market and
deciding the most appropriate segment for the business purpose (Camilleri, 2018). The
organization calculates which segment will be most profitable and broad in terms of customers.
In regard to the Sugar Free, undifferentiated marketing or mass marketing method may be used

in the B2C markets. This marketing method aims at reaching as many customers as possible
without considering the different market segments and threats (von Mutius and Huchzermeier,
2021).
On the basis of the demographic characteristics, the organization may look to target all
kinds of people in the market as the new soft drink- Sugar Free is produced with a purpose of
manufacturing a healthy drink (Powell and Gross, 2018). Sugar free contains zero sugar and
minimum added artificial colour and hence, it may be consumed by every body including
diabetic people and aged ones.
On the basis of benefit, the organization may look to target as many as customers to
increase the sales of the product so that the organization may bring in more profit.
In terms of behaviour of the individuals, the organization may look target people who are
concerned with health and environment irrespective of age, gender, income, education etc. (von
Mutius and Huchzermeier, 2021). If the beverage has a good taste with health benefits and
environment safety measures, it will result in a positive attitude of the customers towards the
product.
Based on the lifestyle of the individuals, the company may target the premium customers
who are ready to a higher price for the product and there may plan to introduce a premium
version of the soft drink in an attempt to gain more profit margins.
c. Explaining the meaning of the term positioning and how the new soft drink
brand could be positioned in the minds of the target market.
The term “positioning” can be defined as the place which a brand occupies in the minds
of the customers and the perception or awareness in the minds of the people about how the brand
is different and unique against its competitors in the market.
The positioning strategy in the marketing helps the organization in defining where the business
or brand stands in the market and how it can be positioned in the minds of the customers to
attract more audience.
Calypso Soft Drinks Private Limited may use different types of strategies of positioning
for its new soft drink brand and make a positive impression on the customers (Fayvishenko,
2018). The company may compare its brands with other competitors in the market and
demonstrate qualities that may present the brand more superior against the alternates. Various

benefits may be offered to the customers like free offers and gifts that may save their money and
fulfil specific needs. The organization may plan and present the product in the market as a
solution of specific problems or concerns such as health and environment (Iyer and et.al, 2019).
The perception strategy might also be used by the organization in positioning the brand in the
market that determines the benefits of changing and altering their choice toward the new product
and explore the benefits.
Section C – Marketing Mix Analysis
These seven P's which is product, place, price, promotion, packaging, positioning and
people. Refers on the basis of the customer's needs which may change rapidly and know about
the market trends which may affect the business of Calypso Soft Drinks Private Limited
(Mahmoud, 2018).
Sugar free- Calypso Soft Drinks Private Limited
Product The Calypso Soft Drinks Private Limited may be varied their products
broadly over time. This soft drink company may targets every popular
brands to increase their productivity. They have a many competitors
like Coca cola, Pepsi and Sprite. They are developing their product as a
diet coke and sugar for the much health conscious customers. This
product knows the need of their customers which may help to make
product effectively.
Place The place is where the products bare displayed and sold to end
customers. Finding the right place is as important as other factors
because an easy and centralized place for the purchasing may be a good
choice for the organization. A centralized location may make it easy to
connect with the customers and convenience might benefit the
organization goals in the competitive wars.
Price This is a revenue generating component of the marketing mix. It
considers all the cost related to production and business and then
decides the final price of the product adding the profit margins. In the
undifferentiated market, the organization may require adequate
information about the diverse set of consumers and the demand and

supply that will be practised. The competitors also influence the
pricing strategies as they strive towards adding more customers. The
current competitive environment requires an additional consideration
of the competitors' influence in determining the price especially in the
undifferentiated market where the product may face a range of
competitors in all categories.
Promotion Promotion refers to the marketing the product in the market and
communication with the potential buyers. It includes demonstrating the
new product and conveying influential message to convince the
customers to buy the product. The organization may create various
campaigns for drawing the attention of different consumers in the
market according to their type and demonstrate the benefits of the
products for all types of people and its health and environment
contribution (Stead and Hastings, 2018). Due to a lot of competition in
the market the promotion strategies need to be strong enough. In this
competitive environment the organization may use a variety of
promotional channels to highlight the brand as much as possible.
People These are the people and employees that contribute in the business of
the environment. These are the pillars of the organization that interact
with the customers, make strategies, put effort in the production
process and selling the product. They bring the relevant set of
information of the diverse market that has been chosen by the
organization and plan strategies for successful operation of the
business. The competitive environment creates a lot of challenge for
the people of the organization and tackling with the competitions in
market.
Physical evidence It refers to the physical efforts that the company is providing for a good
quality customer experience. It is quite useful when the people of the
organization interact new customers. It may leave a good impression
on them resulting in the customer retention. In a undifferentiated

market, where this kind of interaction may demand different behaviour,
this element of marketing mix becomes an ideal way to increase the
brand's value among the customers (Hanssens and et.al., 2018).
Physical evidence may create a unique and thoughtful experience in the
minds of the customers that can put them apart and recognizable in the
competitive market.
Process It refers to the process of reaching the brand to the customers. An easy
process of buying and selling may attract more buyers. In this busy
time people usually go for products that are easily available and has a
convenient customer support. A smooth and transparent process may
build a positive customer experience and improve the customer base.
Easy and convenient process against the competitors may prove to be
an advantage for the soft drink company.
CONCLUSION
It has been concluded from the above report that marketing environment and planning
process is very important when introducing a new brand in the market. A detailed PESTLE
analysis is required for ensuring a reliable analysis of the market environment along with the
micro environmental factors such as the competitors in the industry and recent competitor
activity. The report also concludes the role and importance of the marketing orientation and its
application to the business. The report also concludes the market segmentation and the
differences between B2B and B2C segmentation and the targeting methods that could be used for
B2C market in terms of various characteristics. The meaning of the term “positioning” and the
efficient ways the product could be positioned positively in the minds of the consumers. A
detailed analysis of the 7 P's of the marketing mix for the smooth run of the product in the
market considering relevant environmental factors and understanding them to plan appropriate
strategies.

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