BTEC L3 Diploma: Segmentation, Targeting & Marketing Mix Plan

This report presents a marketing plan for a new energy drink by Breeze Company, focusing on segmentation, targeting, and the marketing mix. It explores consumer markets, emphasizing the importance of identifying influencers and using demographic, geographic, psychographic, and behavioral segmentation criteria. The plan justifies the choice of target groups based on accessibility, profitability, and lack of strong competitors. It also examines business markets, identifying potential partners like supermarkets and restaurants, and discusses segmentation criteria such as demographics, behavior, geography, and psychographics. The report further analyzes the benefits for different members of the Decision-Making Unit (DMU). Finally, it develops a coherent marketing mix, including product discussion, pricing strategy, promotional mix, and place, tailored to a defined group of potential customers, ensuring alignment with the company's mission and objectives. Desklib offers a wide range of solved assignments and past papers for students.

Running head: SEGMENTATION, TARGETING AND MARKETING MIX
Segmentation, Targeting and Marketing mix
[A Marketing Plan for an Energy Drink]
Name of the student:
Name of the university:
Author note:

1SEGMENTATION, TARGETING AND MARKETING MIX
Table of Contents
Purpose............................................................................................................................................3
Task 1...............................................................................................................................................3
1.0 Explain how and why groups of customers are targeted for selected products.........................3
1.1 Consumer markets (importance of identifying who has influence over purchasing
decisions, segmentation criteria for consumer markets)..............................................................3
1.2 Reasons for choice of target group-accessibility, profitability, etc.......................................6
1.3 Business markets (identifying customers in business to business markets, segmentation
criteria for business to business markets)....................................................................................7
1.4 Discuss the benefits for different members of the DMU; Decision Making Unit...............10
Task 2.............................................................................................................................................11
2.0 Develop a coherent marketing mix for a new product or service............................................11
2.1 Product discussion...............................................................................................................11
2.2 Pricing strategy....................................................................................................................12
2.3 Promotional mix..................................................................................................................13
2.4 Place.....................................................................................................................................14
Task 3.............................................................................................................................................14
3.0 Develop a coherent marketing mix that is targeted at a defined group of potential customers
.......................................................................................................................................................15
3.1 Marketing mix.....................................................................................................................15

2SEGMENTATION, TARGETING AND MARKETING MIX
Product.......................................................................................................................................15
Price...........................................................................................................................................15
Place...........................................................................................................................................16
Promotion..................................................................................................................................16
Conclusion.....................................................................................................................................17
References......................................................................................................................................18

3SEGMENTATION, TARGETING AND MARKETING MIX
Purpose
The task is purposefully aimed at making or crafting a marketing plan for a new product
for the case study company “Breeze Company”. The case study company is already into making
a variety of soft drinks for consumers; however, the needs to expand to a wider market have
fuelled the company with thoughts of making a new soft drink. The new soft drinks will be a
‘soft drink with packet’. It contains flavours powder and also gets dissolved easily into the water.
The drink can be made instantly. The selection is being made considering that customers are now
growing with knowledge about the product they consume. Most of them chose products only that
are good for health and are tasty as well.
Task 1
1.0 Explain how and why groups of customers are targeted for selected products
1.1 Consumer markets (importance of identifying who has influence over purchasing
decisions, segmentation criteria for consumer markets)
There are types of segmentation base which is used to target a particular group of
customers. Target customers for this study will be both customers and the business. However,
this section of the study is based on customers only. Following are some of the segmentation
bases (Dolnicar et al. 2014):
Demographic: In this kind if segmentation, segmentation is done based on age groups,
genders, education, income, family size, socio-economic status and more.
Geographic: This helps to design the segmentation based on locations, regions, cities and
more.

4SEGMENTATION, TARGETING AND MARKETING MIX
Psychographics: This takes the help from lifestyle and social characteristics. Lifestyle
and the characteristic will have the influence of demographic factors such as age groups,
genders, education, income and others.
Behavioural: These customers are selective in nature due to their various behaviours.
Their behaviours do really impact their buying nature. For example, there are customers who
only love buying the energy drinks.
Influence over purchasing decisions
The customers of soft drinks can generally be divided into three categories based on their
age-group such as the follows:
 Millennials
 Baby Boomers
 Boomers
The range of customers has number of reasons behind their decision making on soft drinks. One
of the reasons is clients which admire or encourage customers to purchase the product.
Customers generally have their trust on few clients like the supermarket brands. If their favourite
brand is selling a particular product, those loyal customers are very certain to react to it. Other
customers purchasing the soft drinks may also influence those who are the observer. There may
be just the few like such; however, it is indeed possible. Few purchases happen when others
consuming the soft drinks are closely observed. For example, someone is having a soft drink at a
small shop; others visiting the same shop for other reason may also feel like having it. Friends
do also influence the decision making on purchase. If one or few of the members in a group of
friends are consuming the soft drinks, others who had no such intention to consume will certainly

5SEGMENTATION, TARGETING AND MARKETING MIX
make the decision to purchase. On a similar note, if one or few of the family members are
consuming the soft drinks, they will certainly ask the others to have it. Those who initially had
no intention to have the soft drinks will certainly respond to the call. People who are admired by
others will also encourage the decision making. For example, if a celebrity is popular among a
group of people, the group of people will certainly try to follow the possible habits of their
beloved celebrity (Anojan and Subaskaran 2015).
Segmentation variable of soft drink for B2C
Variable Example
Demographic education, income, age groups, genders, family size, socio-
economic status etc.
Psychographic lifestyle and social characteristics which are influenced by
genders, age groups, education, income
Geographic locations, cities, regions etc.
Behavioural Passion for energy drink or flavoured drink
Segmentation base for the chosen product
The chosen ‘soft drink with packet’ will aim the behavioural mode of market
segmentation. In this context, customers who spend on valuable things or make it just for taste
will be targeted. This is because customers nowadays are more convergent in terms of menu,
ingredients, attributes and experience. Consumers have actually become mindful in seeking for
resources that teach them about the benefits and disadvantages of a particular product or service
(Forbes.com 2018).

6SEGMENTATION, TARGETING AND MARKETING MIX
1.2 Reasons for choice of target group-accessibility, profitability, etc.
Accessibility: These customers are easy to reach. It just requires a good promotion of the
product, so that, the message in regards to the product is conveyed to a wider customer base. In
fact, number of customers with their concern for valuable foods and drinks are rising (Gilani et
al. 2014).
Profitability: As mentioned earlier, the target segment of the market is growing rapidly
at the global level. Customers of modern times now have a variety of resources in the form of
internet from where they can access the product related articles. Such customers are very
selective with the kind of drinks that they prefer to have (Weinstein 2014).
Lack of solid counter: The chosen market segment already has number of soft drink
brands operating into; however, most have them have failed to make an impact on both
customers and the health experts. Examples include such as ‘Red Bull’ which is yet to be
identified as a true health drink by the different health institutions in the world (Manzo and Desk
2016).
Competency in the chosen firm: The chosen case study firm is expected to deliver the
results in the selected market segment as the company is already into the making of varieties of
soft-drinks. The case company is aware of the ingredients and the taste which is necessary to
influence the buying behaviour of customers.
Compatibility with the firm’s mission & objectives: The chosen product appears as
compatible with the mission and objectives of the chosen firm. The firm has its mission to
expand its market reach and objectives set as reaching to wider customers with a new product.
The firm just needs a robust marketing plan which it can use to deliver the commitments.

7SEGMENTATION, TARGETING AND MARKETING MIX
Target market of soft drink for B2C
Variable Reason
Adolescents They are the potential customers
Millennials Soft drink consumption is a culture to them
Baby Boomers They also like to consume the soft drinks especially
the energy drinks
1.3 Business markets (identifying customers in business to business markets, segmentation
criteria for business to business markets)
Business market is that where the company in concern works in association with
numerous business bodies to supply the chosen product to the target market. Examples of
business bodies include but are not limited to such as manufacturers in case manufacturing is
outsourced, supermarkets, firms supplying the drink services, cafes & restaurants, retailers,
franchises, independent stores and others (McCrory et al. 2017).
Segmentation criteria
Reaching to the effective groups is the biggest challenge in segmentation. In a likewise
manner, the case study firm should identify the most effective business partners for the chosen
product. The chosen product is an energy drink; therefore, the list of business clients for the case
company will be as follows (Sarti, Darnall and Testa 2018):
 Manufacturers
 Supermarkets
 Chain and independent stores

8SEGMENTATION, TARGETING AND MARKETING MIX
 Franchises
 Cafes
 Restaurants
Target market of soft drink for B2B
Variable Reason
Supermarket stores Such stores consider a huge stock of private label
brands
Grocery stores Private label brands are one of the inventories at
such stores
Retail shops They keep soft drinks along with other varieties of
different products
Soft drinks stores They only keep the soft drinks along with snacks
Cafes & restaurants Soft drinks are potentially the part of such places
Type of Criteria
There are following types of criteria which are normally followed for segmentation in the
business markets (Anderson and Xie 2014):
Demographic
This is one of the kinds of segmentation which is influenced by the size of company and
the products made. For the case study company, popular supermarkets in Myanmar will be
selected. Hence, the segmentation will follow the priorities set by supermarkets.

9SEGMENTATION, TARGETING AND MARKETING MIX
Behaviour
In this type of criteria, segmentation is done based on three variables such as price
sensitive, quality sensitive and delivery sensitive. For the case study firm, quality sensitive
business partners will be preferred.
Geographic
In this type of criteria, two variables such as language and geography are considered. For
the chosen product, geographical locations will be preferred. The proposed new product will be
initially introduced to people in Myanmar. It all depends on the outcomes whether the company
prefer to switch to other countries as well with the product.
Psychographic
In B2B market segment, clients that sell soft drinks as one of their products will be
targeted. Examples include such as supermarket stores, grocery & other item stores, retail shops
and much others.
Segmentation variable of soft drink for B2B
Variable Example
Demographic Companies that sell soft drinks will be preferred such as
supermarket stores, grocery stores, cafes, restaurants, retail
shops and others
Psychographic Supermarket stores, grocery & other item stores, retail
shops etc.
Behaviour Quality sensitive business partners

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Geographic Initially for Myanmar, afterwards the other parts of world
1.4 Discuss the benefits for different members of the DMU; Decision Making Unit
Decision Making Unit (DMU) is a team of individuals who are responsible for consumer
decision making. The DMU may include members such as the buyers, the initiators, the deciders,
the gatekeepers, the users and the influencers. Companies do really make design huge budgeting
for B2B promotions. Benefits of the different members will be as follows (Monroe, Rikala and
Somervuori 2015):
Buyers: They are an integral asset to any business without which companies and the B2B
partners will perish. Their association with the business is highly required for a successful and a
profitable business.
Initiators: They act as the motivators for customers who make spot decisions for the
purchase.
Gatekeepers: They can make customers happy with their customer service. Such gestures
do really make an impact and prepares the platform for purchase.
Deciders: This may include the management and all who make decisions on different
things like inventories, infrastructure of the shopping place, the customer service standard and
more. Inventories, infrastructure and the customer service do really make the difference in
terms of competency and quality as well.
Influencers: They are both physically apparent to customers and working behind the
stage. Apparent influencers use their selling and customer service skills to make the purchase to

11SEGMENTATION, TARGETING AND MARKETING MIX
happen. Those working at the behind stage works on the different things such as the product
layout. Product layout and more others do really enhance the shopping experience and thereby,
contributes to the sales.
Task 2
2.0 Develop a coherent marketing mix for a new product or service
Objectives
 To change the reputation of the case company towards a more responsible attitude for
both local and global market
 To educate the target market or the customers about the ingredients and the benefits of
the product
 To boost sales by storming the instant soft drink market
2.1 Product discussion
The new product which is a soft drink with packet is aimed at appealing the fitness/sports
audience. The beverage container will be given a sporty look and be made from the sustainably
resourced materials & the production methods. The packaging is not the new for the target
market; however, the contents will really be the points of attraction.
Features Benefits
 Sporty design
 Bottle will not just display the brand
name but will also highlight with
specified message on being pasted on it
 The brands’ health connotations
 For a better fitness and health
 Instant drink to satisfy the soul
 Bottles will be both sustainable and