Co-Creation of Value for Irn-Bru in the Australian Market

The assignment presents a comprehensive analysis of Irn-Bru's entry into the Australian soft drink market, emphasizing the co-creation of value. It outlines a blue ocean strategy to differentiate Irn-Bru from competitors like Coca-Cola and Pepsi by capitalizing on its unique Scottish heritage and vibrant...Read More

Running head: MARKETING MANAGEMENT
Marketing Management
Co-Creation of Value
Student’s name:
Name of the University:
Author’s note:

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Table of Contents
1. Introduction..................................................................................................................................2
Overview of Irn-Bru....................................................................................................................2
Overview of the Australian market..............................................................................................2
2. Target market, persona and customer journey.............................................................................3
Target Market..............................................................................................................................3
Customer Persona........................................................................................................................3
Customer Journey........................................................................................................................4
3. Value proposition.........................................................................................................................5
4. SMART goals and Blue Ocean strategy......................................................................................7
SMART objectives......................................................................................................................7
Blue Ocean strategy.....................................................................................................................8
5. Market entry plan.........................................................................................................................9
Exporting strategy........................................................................................................................9
6. 7Ps strategy, tactics, schedule and measures...............................................................................9
7. Value summary map....................................................................................................................0
Reference List..................................................................................................................................1
Appendix..........................................................................................................................................3

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1. Introduction
Co-creation of value can be defined as a business strategy that helps to promote and
encourage the active engagement of the consumers to make on-demand products. Co-creation
helps the consumers to get what they exactly want and customers have a role to make it happen
(Yi and Gong 2013). An organization uses the co-creation to involve the customers in an
interactive experience and it can also help to reshape the manufacturing and production
efficiencies. Co-creation also helps to increase the customer demand and it can increase the
customer satisfaction. The aim of this study is to co-create the value in the Australian market for
carbonated soft drink Irn-Bru. In the first part of the study, target market, customer persona and
customer journey will be discussed. In the latter part of the study, value proposition in the market
and SMART goals of the organisation in entering Australian market will be justified. Moreover,
the market entry plan of Irn-Bru will be given with assessing the 7ps' of the marketing mix.
Overview of Irn-Bru
Irn-Bru is a Scotland based carbonated drink and manufacturer of the soft drink is A.G.
Barr. This soft drink came into existence in the year 1901 and it is considered as ‘other national
drink’ of Scottish people after whiskey. This soft drink is so popular that it overshadows the
multinational brand Coca-Cola in the Scotland market (Agbarr.co.uk 2017). The colour of the
product is orange and sunset-yellow colour. Irn-Bru is ranked third in the UK after Pepsi and
Coca-Cola, this soft drink is produced in Scotland and it has five other manufacturing units apart
from Scotland. Irn-Bru contains iron and rust colour reflects this and it is sold in the bottle as
well as can.
Overview of the Australian market
Irn-Bru is intended to expand the business in South Asian countries and in Australia. In
addition, in Scotland, the organisation uses innovative marketing and controversial campaigns
that help Irn-Bru to keep in the top position. The target market of the organisation in Scotland is
large and the people who leave the country miss in other places. In the Australian market, the
carbonated soft drink companies are varied and recently, the companies have been facing the
issues of low growth. Coca-Cola Amatil has faced the decline of the market by 5% in 2016 and
people in the market are opting mineral water instead of soft drink (Lafus and Schwens 2014).

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Bottled water takes the market and ready-to-drink market has been declining for the anti-sugar
campaign in Australia. According to investment Bank Citi Group, they explain that the soft drink
market will grow by 14% in next five years. People in Australia try to drink a healthier soft drink
with natural sweetener and smaller serving sizes. Current revenue in soft drink industry in
Australia is AU$4 billion and annual growth is observing 0.8% (Moodie et al. 2013). This
industry provides more than 6500 employment opportunity and there are more than 240
businesses in Australia.
2. Target market, persona and customer journey
Target Market
In Australia, Irn-Bru will be a new brand; however, it is already available in Woolworth's
supermarket in small quantities. Very few customers know about Irn-Bru in the Australian
market, hence it is required to segregate the market (Magennis and Begley, 2015).
Irn-Bru can target the customers in the Australian market in demography segment. The
primary target market of Irn-Bru can be young generations aged between 16 and 30. The
occupation of the target market could be students and corporate services as they have to go
outside for their work purposes. In Australia, at first, Irn-Bru has a target each of the customers
as a target, however, the most potential target group will be youth. In Australia, there are many
soft drink companies present with diverse offerings, like 28 Black, Blue, Afri-Cola, Kirk and
Solo. The benefit of targeting the youth will be having large customer preferences and they drink
with a group. Moreover, youths are easy to reach as they always surround the new information
(Groenewegen and McFarlane 2014). The young generation communicates more with others and
word-of-mouth communication will be higher through various media.
Customer Persona
Irn-Bru has to make a customer persona as this will act as a semi-fictional archetype that
will represent the audience with the key trait of the customers (Learner and Storper 2014). In the
Australian market, the new trend of drinking less sugar-laden drinking with flavour can impact
the preferences of the young customers. Young generation prefers the healthier drinks and they
can prefer the alternatives with a carbonated soft drink with fruit juices. Irn-Bru needs to make
customer persona and they can keep them in their database as it would be helpful to understand

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the customers' preferences and their justification of choices. As suggested by Hollensen (2015),
customer persona is significant as it can develop the deeper understanding of needs of the
customers and the process of solving these issues. In addition, customer persona can be a guide
to product development by using the features that assist the organisation in achieving the desired
outcomes. In this regard, the flavoured drinks with sugar contain make the customers repulsive,
hence, Irn-Bru can focus more on less added sugar and diet soft drink for the customers. The
management of Irn-Bru needs to make a ‘customer persona’ and the employees of Irn-Bru have
to fill this with information. The employees have to prioritise the projects with campaigns and
they need to take the initiative to invest resources and time. The customer persona must be
aligned with the organisational values and customer-centric vision.
Figure 1: Proposed Customer Persona of Irn-Bru in Australia
(Source: Self-developed)
Customer Journey
Irn-Bru reduces the thirst and consumption of carbonated soft drink can satisfy the needs
of the customers. The choice of drink for the customers comes from the past experiences and Irn-
Bru will be new in the market, hence, the customers can choose the product as an alternative.
However, it is to ensure that the choices of the customers must be repetitive and young
customers must suggest this to others. In the Australian market, there are other carbonated soft
drinks, Coca-Cola Amatil will be the largest competitor, however,' cultural condition of
Australian people is not as strong as Scottish people (Sheth and Sisodia 2015). Therefore, the

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people can shift their choices if the customers’ need can be fulfilled by Irn-Bru. The first useful
need of Irn-Bru is satisfying the thirst and the second choice will be the fantastic taste that can
beat other competitors in the market. Irn-Bru provides refreshment to the customers and some
British expatriates can love the Irn-Bru as they miss in Australia. In addition, consumers'
motivation in drinking the Irn-Bru will be a habit of drinking soft drink in outside and in the
party. Buyers’ decision starts with need recognition as the customers must feel thirsty and they
must have another need to buy a soft drink as the customers must have internal and external
stimuli. Then, the customer starts searching the information about which soft drinks are present
in the Australian market and they start to evaluate the alternatives. If something new arrives in
the market, merchandising the new products in retail help the products to get noticed. The
customers can take the decision to purchase the new products as it would give them a chance to
taste something new (Keller and Kotler 2016). Therefore, Irn-Bru must have appositive feedback
in the market that would initiate the customers to purchase the products. Irn-Bru has to meet the
customers’ expectation and it can lead to the post-purchase behaviour to purchase again.
Figure 2: Proposed Customer Journey map of Irn-Bru
(Source: Self-developed)
3. Value proposition
Value proposition determines the people’s liking for the products and if the customers
like the products and service, it can boost back the huge profit for the organisation (Kim and
Mouborgne 2014). Irn-Bru will be new in the Australian market and it will require value
proposition. The value proposition of Irn-Bru has to solve the customers' issues and develop the
situation in the Australian market. Value proposition must deliver the specific benefits through

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marketing to the audiences as it must show the quantified values (Kramarz and Skans 2014). Irn-
Bru has to tell the customers about why the customers must buy the carbonated products of Irn-
Bru, not from the competitors and USP must be showcased.
Positioning:
Irn-Bru seeks the foothold in Australian market through improving the condition of the
company in the Australian market. Irn-Bru also wants to create a good relationship with
customers and improve the revenue in the new market. Irn-Bru wants to create marketing
opportunity in a new market through offering the best products.
Positioning statement:
As a soft drink manufacturer, Irn-Bru cares for the customers and their health. Irn-Bru
aims to bring the portfolio of a quality beverage brand that cares for the customers and it must
satisfy the customers' desires and needs. Customers' satisfaction must be fulfilled and it will help
to return a long-term profit for the organisation Barr. Irn-Bru will introduce the diet soft drink
that will help the customers to stay healthy and quality beverage products will fill the gap in the
market. Irn-Bru will provide discounted price for the products in the Australian market in the
initial stage.
Figure 3: Value Proposition framework

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(Source: Self-developed)
In the Australian market, healthy soft drink and competitive price will help Irn-Bru to set
a foothold. The main value of the organisation lies in the reputation in Scotland market and the
discounted price will work as a booster for the organisation. The manufacturer of Irn-Bru needs
to do point-of-sale marketing with perfect merchandising. The value proposition of Irn-Bru can
be mentioned on the website where they must mention about Australian entry (Cavusgil et al.
2014). Online value proposition will be useful for Irn-Bru as the new experience of the
customers will make a good relationship between customers and brand. However, creating a
brand online value proposition will ensure the digital marketing objectives.
4. SMART goals and Blue Ocean strategy
SMART objectives
Objective 1: To build brand awareness in the Australian market
Specific Irn-Bru need to build brand awareness in the Australian market
Measurable It could be measured by digital presence and customer base at the end
of a year in Australian market
Achievable This objective can be achieved through marketing via online, social
media, print and out-of-home
Realistic This is realistic as this would provide brand loyalty to Irn-Bru along
with familiar name among Australian customers
Time-bound Within 12 months
Objective 2: To grow market share in the Australian market
Specific Irn-Bru needs to grow market share in the Australian market.
Specifically, it sets the target of achieving 3% of market share by the
end of 2019 in the Australian market
Measurable It could be measured by specifically taking the feedback from the
customers and market analysis

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Achievable This objective can be achieved by taking marketing strategy like retail
or opening new stores. Irn-Bru can also be achieved by starting an
online campaign and direct selling.
Realistic This is realistic as the manufacture Barr needs to achieve the break-
even point and make profit to survive in Australia market
Time-bound Within 12 months
Objective 3: To increase sale in the Australian market
Specific Irn-Bru should increase the sales in the Australian market through
Coles, Woolworths, IGA and Lidl
Measurable This can be measured through organisational calculation and report by
the end of a year
Achievable This can be achieved by strong marketing and brand presence. As this
a new organisation, it can be achieved by making commercials and
sponsors. The brand image helps the organisation to have loyal
customers.
Realistic This is realistic as the organisation needs to enter in Australian market
with higher sales
Time-bound Within 6 months
Blue Ocean Strategy
Blue ocean strategy refers to a market where the organisations do not face any pressure
from the competition and there should be very fewer firms that operate in the same industry.
Blue ocean strategy creates an industry where the firms do not face any pricing strategy (Mebert
and Lowe 2017). In soft drink industry of Australia there are many other firms that operate in the
same sector, however, this market cannot be apt for blue ocean strategy, however; Irn-Bru can
make the market blue ocean by overshadowing the competition. Irn-Bru can take blue ocean
strategy as they want to capture new demand and make the competition make irrelevant.

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In case of Irn-Bru, the management of Barr can take the strategy of ‘economies of scale';
Irn-Bru will generate high volume of value innovation that can lead to a rapid cost advantage for
Irn-Bru. Irn-Bru needs to export the products in the Australian market in high volume and high-
value innovation can lessen the costing, therefore, customers of Irn-Bru can get the products in
the open market at very less price. This cost-leadership strategy with a quality product can
overshadow the competitors.
5. Market entry plan
Irn-Bru can take exporting strategy as it would be helpful for them to export the products
from Russian and Scotland manufacturing sectors to Australian retail. The organisation has
already set the target market with information and customer persona will be produced later.
Sourcing of the products will be on retail outlets of Woolworths, Coles and IGA.
Exporting strategy
Irn-Bru will take the exporting strategy and it is the most traditional and well-established
form of operating in foreign markets. No direct manufacturing is required in Australia and
significant investment in marketing is required for the management of Barr. In exporting of the
products, the management does not need to obtain the marketing information; however, the
distribution channel needs to be perfect. The distribution channel must be direct and the shipping
products must be reached the retail outlets in no time. Once Irn-Bru will establish in the
Australian market, distributors can represent them further in the market. Through exporting the
products in the Australian market, making new manufacturing section in Australia will be
expensive and exporting will be less risky. Irn-Bru will have an opportunity to learn overseas
market before investing in marketing and manufacturing. In addition, exporting can reduce the
potential risk in operating overseas (Bryson et al. 2017).
6. 7Ps strategy, tactics, schedule and measures

Running head: MARKETING MANAGEMENT
7Ps of marketing mix Strategy
(What)
Tactics
(How)
Schedule Measure
Products Irn-Bru will offer
carbonated soft drinks
with various flavours like
orange and cola. The
famous sunset yellow
coloured drinks will also
be available.
In the Australian market,
Irn-Bru offers all the
products that are available
in Scotland and the
products are part of the
Scotland's culture. The
physical product is the
liquid of Irn-Bru, however,
phenomenal and
indescribable taste give the
extra value to the products.
By the end of 2018 This can be measured in
the retail stores of
Australia to check the
availability of Irn-Bru cans
and bottles
Price The price will be low-cost
as cost leadership will be
the strategy.
the manufacturer Barr may
export a bulk amount of
products from the Scotland
and sell it to different
retail outlets.
By the end of 2018 By checking the price of
the other products and the
profit margin of the Barr
Place The retail outlets of
Australia like Woolworths,
Coles, Aldi and IGA and
at least 75% of the retail
stores in Australia must
have the Irn-Bru products
Barr will take the strategy
of export and it will use
single distribution channel
to send the products in
retail stores. Single
distribution channel will
help the organisation to
manage it easily and
reduce the cost
By the end of July 2018
Barr will make contract
with the distribution
channel
By checking all the retail
stores in Australia if the
Irn-Bru products are
available or not
Promotion Irn-Bru will use social
media strategy and the
print media in order to
reach the Australian
customers. Print media
will give the boost in sales
as many people read
magazines and
newspapers. Youngsters
mainly use social media
PR team of Barr will use
the Scottish people’s
sentiment to showcase on
social media pages of
Australia and Australians
can relate this too.
The PR team will mainly
use Facebook and Twitter
advertisements to reach
the customers. These
The advertisements will be
started after July 2018 on
print media and social
media pages of Australia
The social media buzz will
be measured by social
media analytics and the
feedbacks of the users.
Print media feedbacks will
be measured through the
word-of-mouth publicity
of Irn-Bru.

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and Irn-Bru can reach the
youth.
channels are cheap and
effective.
In print media, some of the
best selling newspapers
will be chosen for
advertisements on
weekends.
Process Barr will use the export
process and the
distribution will be a
single chain. The ships and
cargoes will carry the
products and intermodal
transport system will be
used
The employees will carry
the products from the
cargoes and ships to
warehouses. The products
will then be reached at the
retail outlets.
Internationalised pay
system will be used as
Pay-Pal.
This shipping process
from Scotland and Russian
manufacturing sectors will
be started after November
2018
This could be measured by
the presence of products in
retail stores
People Irn-Bru will use the
employees based on
Australian employees as
they have knowledge
about Australian market.
They will be used for
sales, marketing and
distributions.
The recruitment process
will be done through
external recruitment and
geocentric approach will
be taken by the HR of
Barr.
The recruitment will be
started at the end of
September 2018
This will be measured by
the number of employees
who will be recruited
Physical evidence Buildings, legal papers,
logos and names of brands
Barr will use the names
and logos and they will
hire the warehouses and
office buildings in a few
parts of Australia
The office buildings and
warehouses will be
selected by the July of
2018
It could be measured by
the presence of
warehousing and office
building

Running head: MARKETING MANAGEMENT
7. Value summary map
Barr Manufacturer Company will use the customers’ preferences and they will make
the customers’ profiles. The construction of identities in the Australian market will then be
made by promotions and context of uses of the products Irn-Bru will be conceptualised by the
management. Customers need to experience the products and service process and
participation of the customers is needed. The co-creation of value will be possible when the
organisation’s goals will be met. Barr needs to promote the products and free sampling can be
given to the customers in events can help the management to make participate the customers.
Figure 4: Summary of co-creation of value
(Source: Self-developed)

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Reference List
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Bryson, J., Santino, A., Bennington, J. and Sørensen, E., 2017. Towards a multi-actor theory
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Groenewegen, P. and McFarlane, B., 2014. A History of Australian Economic Thought
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create uncontested market space and make the competition irrelevant. Harvard: Harvard
business review Press.
Kramarz, F. and Skans, O.N., 2014. When strong ties are strong: Networks and youth labour
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Laufs, K. and Schwens, C., 2014. Foreign market entry mode choice of small and medium-
sized enterprises: A systematic review and future research agenda. International Business
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Sheth, J.N. and Sisodia, R.S., 2015. Does marketing need reform?: Fresh perspectives on the
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Appendix
Individual Narrative
I am extremely grateful to complete the assignment and I wanted to do this
assignment by myself. Completion of the project gives me much pleasure and I have gathered
the knowledge of co-creation of value. Furthermore, this assignment has been done in a way
that one could understand the marketing management process with value creation very well,
first in an existing market and after that in a different market. I have selected Irn-Bru as a
product as I had been in Scotland and Irn-Bru was one of my favourite drinks. This biased
selection led me to do this study alone. In making a perfect team, we had to focus on roles
and values of each role. We would communicate and set the goals for given time frame. If I
could have done this assignment with a team, I had to divide the assignment with my
teammates. Maybe we had to segregate the assignment into several parts and I could not get
the chance to do it myself all alone. In team work, I could have got the chance to show my
team working skill as well. In a team project, we would break the project into a few parts and
each of the team members had to do their parts. I have a good implementation and analysis
skills; I could have chosen the sections, which included this like 7Ps analysis and strategy
selection for Irn-Bru. In team work, we could have faced the challenges to make a coherent
idea for all. At the end, the assignment might not have the logical flow of thoughts.