Marketing Report: Launching Pine Cola for Lovely Drinks - Strategies

This report examines the marketing strategies for Lovely Drinks, a UK-based soft drink company, focusing on the launch of their new Pine Cola product. The report begins with an introduction to the importance of marketing concepts and the challenges faced by small enterprises with limited resources. It then delves into elementary marketing research techniques and ideas for developing the new Pine Cola, highlighting its unique blend of pineapple and cola flavors. The report emphasizes the role of pricing decisions, exploring strategies like premium, economy, penetration, and psychological pricing. Furthermore, it discusses distribution channels and marketing mix elements essential for attracting customers and building a loyal customer base. The conclusion summarizes the key findings and recommendations for a successful product launch. The report also includes references to relevant journals, books, and online resources.

MARKETING
AND
ENTERPRISE

TABLE OF CONTENTS
INTRODUCTION............................................................................................................................3
Importance of marketing concept ...............................................................................................3
Problems faced by small enterprise with limited resources .......................................................4
Elementary marketing research techniques ................................................................................4
Ideas for developing new product ..............................................................................................5
Role of pricing decisions ............................................................................................................6
Distribution channel and marketing mix elements .....................................................................7
CONCLUSION................................................................................................................................7
REFERENCES.................................................................................................................................8

INTRODUCTION
Marketing is a process which is generally used to describe communication between the
organisation as well as the customer audience so that firm can increase the value of their products
and also raise the profile of venture in the eyes of the company. Customers play a crucial role as
they are the main source of revenue for the business enterprise (Ghuman, 2010). Thus,
organisation has to come up with best of the marketing activities so that they can excel in their
revenue as well as productivity.
By taking the above topic into consideration, this present report has been prepared on
Lovely drinks which is a UK small scale soft drink company and an award winning organisation
who produces soda's and juices (About Lovely drinks, 2016).
Illustration 1: Lovely soft drink products
(Source: About Lovely drinks, 2016)
§
This present report will focus on launching new cola drink for the cited organisation in
accordance with developing pricing strategy for the same. This document will also showcase the
different strategies which will be used by the company to attract and make a loyal customer base
for the new drinks.
Importance of marketing concept
Marketing of products and services plays an important role as through that only the firm
will be able to make an extensive brand image in the eyes of the customers (Gönül and Carter,
2012). Further, the organisation have to majorly emphasis on their marketing and sales strategies

because if the customers are not attracted towards the same, then the firm will not be able to
enhance their brand image and productivity for the newly launched soft drinks. Some core
importance of the same has been discussed down under:
 Business venture should be concern towards the customer’s needs and demands rather
than focusing or forcing customers to choose their products. If the product so launched
meets the needs of the customers then the need of promoting the product is reduced
significantly.
 Marketing concept also requires some sort of integrated as well as coordinated approach
in relation to the marketing. Unification and diversification into different products makes
firm efficient and with it they are able to excel their business operations (Akaka, Vargo
and Lusch, 2013).
 Marketing concept comprises of strategic and philosophic value and this value assists the
business organisation to direct their organisational efforts for achieving their short term
and long term goals.
Problems faced by small enterprise with limited resources
Lovely drinks are a reputed soft drink brand in UK but it does not have much presence as
global firms have. Cited firm also faces stiff competition from the major competitors who are
working in the same industry. The production of soft drinks is done with the hand-picked
elderflower along with the lemons and different other artificial products. Drinks are also made
with the artificial flavours and also with different concentrates.
However, firm faces stiff competition from major competitors like Coca-Cola, Britvic
and different other ventures who is working since long years and have extensive presence whole
around the globe. Apart from this, mentioned company also have limited resources in the form of
finance as well as human (Leonidou, Katsikeas and Morgan, 2013). Their expansion will depend
on how the workforce is contributing their best in growth and development of the business
enterprise. Moreover, company is also aware of the scarce resources and they are doing relatively
well for utilising the same so that they can get best of the output.
Elementary marketing research techniques
Marketing research can be defined as a systematic recording, gathering and analyzing the
data about the basic problems which is related with the market place. These problems generally

relates to the product, price, place and promotion. Market research generally covers following
items on study. Some of them are:
 Market size
 Geographical and demographic location of customers
 Proper market segmentation on basis of age, sex, income and education
 Customers needs and demands
 Product and sales research
 Advertising and promotional research
Cited business venture has to conduct this research to give best of the products to
customers. If the users are satisfied then firm will be able to increase their revenue and will be
able to enhance their turnover along with the brand image (Smith, 2012). Further, manager of
Lovely drinks is also bound to scan the market environment in effective manner so that best of
the decision can be taken into consideration.
Ideas for developing new product
Lovely drinks has developed specific market share in short span of time and the manager
of cited venture is focusing on excelling the same so that they can increase more of their profit
and revenue. Mentioned firm currently have different products in the form of lemonade, Soul
cherry cola, raspberry, etc. By seeing the needs and demands of the customers, mentioned firm is
now putting their foot into the development of soft drink which usually global firm used to make.
Further, cited firm has done consumer marketing as well as business-to-business market research.
Further, by focusing on the marketing environment and also the preference of the
customers, Lovely drink is emphasizing on introducing the Pine cola which will be prepared with
the mixture of pineapple and Cola (Ghuman, 2010). This drink will have less percentage of
alcohol as compared to other Cola drinks. These drinks will be available in cans, bottles as well
as glass bottles. Further, the availability of the same will be at different fast food restaurants,
movie theatre, dinning, and bars as well as also at the soda fountain shops.
This innovative product will catch the eyes of the customers because in recent times
people have wrong perception regarding the original Cola products and they feel like that it is
harmful and injurious to health (Yannopoulos, 2011). Moreover, instead of going towards these
Cola drinks, customers are willing to have juice or lemonade products so that they will not be
much affected. The main idea behind the launching of this product is that it will be more

effective for customers as this will comprise of both Cola as well as fruit flavour taste. Secondly,
it is prepared from organic products only so that it will not affect the health of the customers and
also give valuable nutrients which will add value to their life (Parker and et.al., 2011).
Role of pricing decisions
Price of the products need to be affordable so that Lovely drinks will be able to attract
more of the customers towards their newly launched product. Further, the drink will be suitable
for all age groups and it will give utmost benefit to the customers. The price of the product will
differ according to the quantity purchased by the individual. Moreover, it will be available in
300ml, 500ml, 1 litre, 2 litres and 2.25 litre of packaging. The manager of the cited firm can
focus on the mentioned pricing strategy to set the best price of the mentioned product.
Further, pricing is one of the four elements from the marketing mix components along
with product, place and promotion. Pricing is the one where company can achieve the success by
finding the suitable pricing point so that firm can maximise their sales as well as profits. Some of
the pricing strategies are: Premium pricing: This is one of the pricing strategies where the company establishes
prices higher than that of the competitors. This tactics can only be possible when firm is
bringing certain new and innovative. It is considered as a good strategy for organisations
that are willing to enter into new market with new product (Akaka, Vargo and Lusch,
2013). Economy pricing: In the economy pricing, firm will focus on keeping the price of the
products as low as possible so that they can attract a specific segment towards the
launching of new products. Penetration pricing: Penetration pricing is the one which is build and designed to capture
market share by entering a new market with the low price as that of their competitors.
With this, organisations usually attract buyers towards the products and they will enhance
their revenue and productivity within the specific time period.
 Psychological pricing: This pricing is the unique concept where marketers set the price
of the products uniquely like £99 which is psychologically less in the minds of the
customers then stating as £100.

Distribution channel and marketing mix elements
Lovely drink apart from the pricing has to seek their major attraction towards the
distributive channels as well as other elements of marketing mix. Manager of the cited firm can
focus on penetration pricing as with it they can excel the base of their customers with the
launching of the product only. Apart from it, the company can emphasize on selective as well as
intensive distribution channel so that the product can be available to the large customer base.
Apart from it, for promoting the product in the eyes of the customers, firm can focus on
online publicity as large audience spend lot of time in socialising and the product so launched
will surely capture and make a brand image in the eyes of customers (Armelini, G. and
Villanueva, 2011).
CONCLUSION
From the above report, it is clearly evident that the marketing is a broad concept and
consist of different elements which the business enterprise has to take into consideration at the
time of expanding their business operations. This report also depicts that Lovely drinks has
introduced their new product in the form of Pine cola which will give customers a taste of cola
with effective nutrition.

REFERENCES
Journals and Books
Akaka, M. A., Vargo, S. L. and Lusch, R. F., 2013. The complexity of context: A service
ecosystems approach for international marketing. Journal of Marketing Research. 21(4).
pp.1-20.
Armelini, G. and Villanueva, J. 2011. Adding social media to the marketing mix. IESE-Insight
Magazine. 3(4). pp.29-36.
Ghuman, K., 2010. Management: Concepts, Practice & Cases. Tata McGraw-Hill Education.
Gönül, F. and Carter, F., 2012. Estimation of promotional strategies for newer vs older drugs
based on physician prescribing data. International Journal of Pharmaceutical and
Healthcare Marketing. 6(1). pp.39 – 54.
Leonidou, C. N., Katsikeas, C. S. and Morgan, N. A., 2013. “Greening” the marketing mix: do
firms do it and does it pay off?. Journal of the Academy of Marketing Science. 41(2).
pp.151-170.
Parker, S. and et.al., 2011. Formative assessment using social marketing principles to identify
health and nutrition perspectives of Native American women living within the Chickasaw
Nation boundaries in Oklahoma. Journal of nutrition education and behavior. 43(1).
pp.55-62.
Smith, A., 2012. Introduction to sport marketing. Routledge.
Yannopoulos, P. D., 2011. Impact of marketing strategy formulation. International Journal of
Business and Social Science. 2(18).
Online
About Lovely drinks. 2016. [Online] Available through: <http://www.lovelydrinks.co.uk/about/>.
[Accessed on 28th July, 2016].
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