Britvic Plc's Strategic Market Analysis and Entry Plan for Nigeria

This report provides a detailed analysis of Britvic's strategic plan to enter the Nigerian market, focusing on the beverage industry. It begins with an introduction to Britvic and its global marketing strategies, highlighting the company's vision and mission. The report then conducts a thorough market and competitor analysis, examining the Nigerian beverage industry's revenue, user demographics, and key competitors. Furthermore, it explores the current business environment through PESTLE and VRIO analyses, evaluating political, economic, social, technological, legal, and environmental factors, as well as Britvic's internal resources. The report also delves into Britvic's marketing and entry strategy, including market segmentation based on geographic and demographic criteria, and outlines the marketing mix (product, price, place, promotion) tailored for the Nigerian market. Finally, it concludes with recommendations for Britvic's successful market entry and expansion in Nigeria.

ASSESSMENT

Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................3
MARKET AND COMPETITOR ANALYSIS................................................................................3
CURRENT BUISNES ENVIORNMENT.......................................................................................5
External.......................................................................................................................................5
Internal........................................................................................................................................6
MAREKTING AND ENTRY STRATEGY (STP).........................................................................8
MARKETING MIX.........................................................................................................................9
CONCLUSION AND RECOMMENDATION.............................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
In the current global business environment it is very essential for companies to
effectively use global marketing strategies. The major reason for this is that when company
operates in the global market then competition is very high and for this they have to effectively
use marketing strategy (Baena, 2019). The current study is based over company Britvic which is
a British producer of soft drink company based in Hemel Hempstead in England dealing in
beverage industry. The company was founded in year 1845 and now is planning to expand its
business in Nigeria as well. The company is planning to enter in Nigeria with a major focus over
energy drink.
The major reason for this is that in Nigeria there are more growth opportunities in
beverage industry and this will provide a good exposure to growth and development. The vision
of company is to become dynamic, trusted and creative soft drink company all over the globe.
The mission of company is to embrace sustainable and innovative idea in order to attract more of
the consumer in both new and existing environment. The company provides for a wide range of
soft drinks and other energy drinks as well along with carbonated soft drinks.
MARKET AND COMPETITOR ANALYSIS
When a company is planning to enter into a new market then they will have to first
conduct a market and competitor analysis. This is particularly because of the reason that if
Britvic will not analyse the competitive position in the Nigerian market then they will not be able
to make strategies (Schlegelmilch, 2016). This is particularly because of the reason that when
Britvic will have a look at the current competition in Nigerian market then this will assist Britvic
in making strategies for entering in Nigerian market. For analysis of market most important thing
is to first look at the beverage industry in Nigeria and what are the strategies being used by
competitors in Nigeria. This is essential as this will provide an overview that how the Nigerian
beverage industry is working and what strategies Britvic will have to make in order to operate in
Nigerian industry.
In the Nigerian food and beverage industry the revenue showed an annual growth rate of
15.3 % and the project market volume of US$289 million by 2025. Also there are large number
of users in Nigeria for the soft drinks and other types of drinks. This includes majority of user on
basis of age and maximum consumption is among people belonging from 25- 34 age group.

(Source: Food and beverages, 2020)
Hence, from the above chart it is clear that the majority of the users of beverages is the
people belonging to the category of 25- 34 years. This suggests that if Britvic will enter in
Nigerian market then they will majorly have to focus over the people belonging to this category
of market. Further is Britvic will majorly focus over the attracting of consumer belonging to this
age group then this will be a success for the company and they will be able to sustain in the
Nigerian market. The GDP of the country is worth 448.10 billion in the year 2019 and on the
other side the GNP or GNI of the country is 407.93 billion in the year 2019 which showed an
increase of 5.94 % as compared to 2018 (Nigeria GNP 1962- 2020, 2020).
The competition within the beverage industry of Nigeria is too high and there are many
different companies working in the beverage industry. Among the major competitors the
company are Ekulo group, Index food industries, Real milk, B- Cate Zobo drink, Caminierre
global concept, Flinks food and beverage industries and many other competitors. Thus, with this
it can be seen that the already there are many competitors within the Nigerian food and beverage
industries and for Britvic it will be of much importance for the company to do proper market
research before the entering into the market.

CURRENT BUISNES ENVIORNMENT
External
The business operates in the environment which is dynamic and frequently changing and
because of this it is the responsibility of the business to time to time research for the changes
taking place in the external environment (Perera, 2017). Thus, for this before entering in Nigeria
Britvic plc with help of PESTLE analysis tool will analyse the external environment of beverage
industry in Nigeria. The elements of the PESTLE analysis within the beverage industry of
Nigeria is as follows-
 Political factor- this includes the changes taking place in the political and the
government strategies. Due to the current pandemic many countries have stopped trade
among countries and this has affected the growth and development of the domestic
country (Gheibi and et.al, 2018). Thus, for this the government of Nigeria are giving
some relaxation to the people who are coming in Nigeria and setting up their business.
Thus, this will have a positive impact for the business of Britvic. The major reason
underlying this fact is that when the company will enter in Nigerian market then this will
assist company in getting more subsidies and benefits.
 Economic factor- this is the factor which includes the changes taking place in the
economy of the country. This includes factors like inflation, interest rates, purchasing
power of consumer and many other related factors. With respect to the current pandemic
the interest rates are being decreased over the loans taken (Christodoulou and Cullinane,
2019). Thus, this will create a positive impact over the working and operations of Britvic
as they will get finance at cheaper rates as compared to other countries. Moreover the
labour is also available at cheaper rates as compared to other developed nations. Hence, if
Britvic will go for Nigeria then they can also have labour at low cost and this will
decrease cost of production.
 Social factor- this includes the beliefs, attitudes, perception of people living in a country.
When another company enters in different country then the most important thing is the
analysis of the social factors within that country (Nandonde, 2019). The major reason for
this is that if the company will not be able to attract the society and the consumer beliefs
then the product will fail. Hence, due to the current situation of COVID 19 all the people
have become more conscious relating to their health and this will promote the product of

Britvic. The major reason underlying this fact is that Britvic is entering in Nigerian
market with the energy drink to increase immunity and this will help people in fighting
against COVID 19.
 Technological factor- this is the also the major factor to be analysed in order to enter in
the new market. The major reason for this is that if Nigeria is not having good access to
technology then this will affect the installation of business of Britvic (Doing business in
Nigeria- PESTEL analysis, 2020). The major reason for this is that when the technology
is not good then this will affect working of Britvic to a great extent. The positive impact
of this factor is that technology is available at cheap rates and this will assist company in
managing cost to a great extent.
 Legal factor- this is also a major factor to be considered at time of entering in the new
market (Gheibi and et.al, 2018). The major reason for this is that the legal requirement of
every country is different and if Britvic need to enter in Nigeria then first they have to
analyse the legal aspect of the business environment. This includes compliance with
different laws like health and safety law, employment law, contract act and many others.
 Environmental factor- this is also an important factor to be analysed before entering into
any other country. The major reason for this is that when the in modern and advance
world the consumer have become more conscious towards the protection of the
environment and the society (Rastogi and Trivedi, 2016). Thus, if Britvic is entering in
Nigeria and if they do not take care of the environment then this will have a negative
impact over the working of the company. Thus, for this they have to ensure that they
make effective strategies relating to CSR in order to attract consumers.
Internal
Before entering in any other country it is also very essential for the company to do
internal analysis as well. This is particularly because of the reason that if the internal capability
of company is not effective and if they are not having appropriate resources then they will not be
able to manage their operations in Britvic. For analysing resource capabilities Britvic has made
use of VIRO model in order to analysing its capability and internal strength (Indartono and
Wibowo, 2017). In accordance to VRIO analysis the resources of company can be divided in
four different categories which are as follows-

 Value- this is the first question which includes the fact that whether the resource is
valuable or not. Under this the resources which are valuable are effectively applied and
this assists company in gaining competitive advantage. Under this comes the financial
resource, employees of company and cost structure of company (Yudiono, Wilopo and
Iqbal, 2019).
 Rare- this question answers the fact that whether the resource available is rare or is
available or is in abundance. This is essential because if resource if rare then it need to
used in very optimal and effective manner. The rare resources of Britvic plc are financial
resources, technology, research and development, employees and cost structure.
 Imitable- the imitable questions answers the fact that whether the resource available can
be imitated by other competitors or not. Thus, if the resources are imitable then it is the
responsibility of Britvic to ensure that these resources are not copied by any other
company. The major imitable resources of Britvic are financial resources, patent,
employees, cost structure.
 Organized- this includes the answer to fact that whether resources of Britvic are
organized in proper and effective manner or not (Hernández and Garcia, 2018). For
effective working most important thing is to have all resources organized in proper
manner so that it can be optimally used. The organized resources of Britvic while
entering in Nigeria are financial resources, technology, cost structure and employees.
Resources Valuable Rare Imitable Organized
Financial
resources
   
Cost structure    
Employees    
Technology  
Research and
development

patents 

Hence, from the above VRIO analysis the company Britvic is having three resources that is
financial resources, employees and cost structure which will assist company in securing effective
position in Nigerian economy.
MAREKTING AND ENTRY STRATEGY (STP)
Segmentation
The market segmentation is the process in which the market is divided into small groups
based on the similar requirements or characteristics of the potential customers who will exhibit
the same buying behaviour. The objective is mainly to analyses the market and determining the
opportunities available and using the competitive edge to capitalize those opportunities
(Camilleri, 2018). The Britvic company will segment the customers based on the below given
criteria.
Geographic segmentation: The Britvic Company will segment the market on the basis of
geographies. The division is on the major areas of Nigeria and the head of each of these divisions
will report to the head branch (Schlegelmilch, 2016). Lot of autonomy will be provided to each
of these divisions for the purpose of running its operation. For the geographic segment the
company will divide its consumer on basis of urban and rural areas in Nigeria. The company will
majorly focus on urban population as the energy drink will attract the urban people to a great
extent. Under the demographic category, the product will be segmented for all age groups and
people of income group. But specifically the company will prefer to market its product for age
group of 10- 25 and 25- 45.
Place of consumption: Britvic will also segment the market on the criteria of consumption of the
energy drinks or just drinks. Much of the consumption of the energy will take place in the gyms,
restaurants, place of sports while others at the home.
Product type: Britvic segments the market on the premise of the fact what type of products is
purchased by the consumers. The market is basically divided into normal drinks and energy
drinks and there is no such company providing energy drinks in that region, this will help in
increasing the market presence rapidly.
Targeting
The company will target different segments with the help of different advertising. The
primary market is between the age group of 10-25 years and the second category is the 25-40
years. This product is targeted towards the people who are health conscious but along with the

health benefits requires variety of flavours with taste (Suyanto, 2019). The company will be
making use of the differentiated targeting practice for gaining the market and take the
competitive advantage.
Positioning
The Britvic have positioned its product, that is, energy drink as the most refreshing,
energetic and thirst quenching product. This product will bring in energy, excitement among the
consumers. The product is being associated with the health and enjoying the everyday life. The
product will be marketed as the high quality product.
Position map
MARKETING MIX
An analysis of the 4Ps of marketing mix is carried out which states about the various
strategies that will be implemented by the company for grabbing the market. This involves
various types of strategies, tactics which are used by the company in regard to effectively
promoting its products (Mothersbaugh Hawkin, and Kleiser, 2019). This is the most widely used
approach for formulating the marketing strategies which helps in ensuring that all the aspects are
covered. A detailed analysis is provided below.
Product mix

The Britvic plc requires developing a uniquely designed product that is the energy drink
along with a standing out features and characteristics which will help it in differentiating itself in
the competitive market. The company requires paying much attention on the different aspect of
launching energy drink like product quality, variety, augmentation services, mode of packaging
and the variety in the product (Dörnyei, 2020). It can also provide additional benefits in order to
increase the sale of new energy drink launch in Nigeria by providing warranties, customer care
service, ingredients used, customer grievance services etc. The company should first test product
energy drink before entering for the full commercialization and it should meet with the
expectation of the customers. Thus, the energy drink should be developed which will help in
effectively meeting up with the needs of the target group.
Price mix
This element of marketing mix states about the value element of the product which is
being proposed for the target group. The pricing strategy of the company Britvic plc will involve
the setting up of the list of prices, credit terms in relation to it along with eth mode of payment
and other offers and the discounts. The company will implement the penetration pricing strategy
as under this; the company will put the price at lower in comparison to its competitors. This will
assist the company in getting a large market share and after that company might increase the
price slightly. Through this strategy, Britvic plc will be able to easily acquire the substantial
market share. The same can be done by making use of the discounting pricing model (Išoraitė,
2016). But on the other hand, the management is required to well aware about the other potential
or expected retaliation from its competitors which might result into incurring unfavourable and
ugly price war. In the initial months, the Britvic plc making use of the psychological pricing will
help it in attracting more customers resulting into increasing its customer base. The objective of
company is to gain large market share and for this at initial level the company will charge low
price and after capturing high market the prices will be increased.
Place mix
This marketing mix element will require the company to undertake some crucial
decisions in regard to the development of the distribution plan. The company will start selling its
product two channels. The first is making sells directly the online platform and the other is
selling it using the traditional distribution channel, that is, wholesalers to retailers across
different regions in the country, which is then sold out to the end consumers. The company is

already having a well-established channel online channel for selling its product thus, it will be
very easy for it for making its product made available in the regions of Nigeria. The modern
consumers are more interested in the convenience and the easy availability of the product.
Therefore, it becomes essential to implement the right distribution network (Kumar, Shankar and
Aljohani, 2020). The Britvic plc will work on further enhancing its existing distribution system
based on the certain important factors such as characteristics of the product, involvement of
many middleman is not good for the energy drink product as it is having an expiry date. Further
analysis the customer’s preference in buying that product like either using online mode or
through the traditional stores and also collecting relevant resources which will help in effectively
meeting up with the requirements. Therefore, the implementation of the best place or distribution
strategy makes it important for the Britvic plc in order to ensure success through the way of
attracting more customers, increasing sales and gaining the market share.
Promotions mix
Promotion mix is the most important factor which the Britvic plc requires to put focus on.
There are the different types of promotional practices which can be implemented by the Britvic
plc such as using TV, radio, print media, catalogues, direct mail campaigns and so forth. This
forms of promotion and advertising is useful for the company in targeting large group of
customers. Apart from this, the company will hire influencers on the social media, for instance,
bloggers or the popular star or celebrity and involving them in the promotion activities like
advertisements. The bloggers will post content in respect to the product on the social media
pages which is good way of promotion (Sanober and et.al. 2018). The celebrities can be included
in the TV commercials for endorsing the product which will attract more customers. The
company will also initiate a campaign in which a consistent message will be shown to the
customers on all the relevant promotional media platforms. This will result into increasing the
product awareness into the mind of the customers. After sometime, the company will make use
of social media platforms for further promoting its products to a larger group of audience. This
will result into increasing the online traffic on its website. This mainly involves SEO and banner
advertisements. The company will start making use of data analytics which will help in gathering
information on the audience preferences which will help in providing more valuable services to
the users.

CONCLUSION AND RECOMMENDATION
In the end from the above discussion it is clear that when the business operates in the
global market then they have to specifically make use of global marketing strategy to secure a
competitive position. From the above discussion it is clear that if Britvic will enter in Nigerian
economy then it will be beneficial for company as there is political relaxation and labour is also
available at low rates. Further it was also seen that major essential resources are financial
resource, cost structure and employees. Further it was seen that major segment focused was
geographic and place of consumption and demographic. Further major target of company was
10- 25 and 25- 40 years of age group. In the end it was seen that deciding for marketing mix was
also very important for the company. Further in the end it was seen that company also need to
fulfil all its corporate social responsibility and work in ethical manner in order to make its energy
drink successful in Nigeria.
Recommendation
The major recommendation for Britvic is that they must continuously research in market
as the need and preference of consumer keeps on changing very frequently. Hence, when
company will continuously research in the competitive market then they will gain knowledge of
recent trends among consumers. Further with help of market research the company will be able
to analyse the competitor’s strategy and this will assist in developing their own strategies.
Another major recommendation is that Britvic must follow all the rules and regulations
prevailing in Nigeria as compliance with laws will build trust of consumer towards the company.
When the company follow all guideline prescribed by the government of Nigeria then this attract
more of the consumer and business of Britvic will increase.

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