Marketing Report: Analysis of Paisley Drinks Company's Soft Drink

This report provides a detailed analysis of the marketing principles applied to Paisley Drinks Company, focusing on the introduction of a new soft drink, "Pina Colada," in the UK market. The report begins with an introduction to the core concepts of marketing, including the marketing environment and planning process, with an emphasis on situation analysis (5C, PESTEL, SWOT). It then delves into the marketing mix (7Ps), covering product, price, promotion, place, physical evidence, person, and process. The report further explores segmentation, targeting, and positioning strategies, analyzing both B2C and B2B market models. The report examines the competitive landscape, including major competitors like PepsiCo and Coca-Cola, and discusses the impact of factors like Brexit and changing consumer preferences. The analysis covers the economic, social, technological, environmental, and legal factors affecting Paisley Drinks Company. Finally, the report includes an analysis of marketing mix decisions, and references to support the findings.

Principles of Marketing
Student Number:
Date of Submission:
Word Count:3161

Table of Contents
Introduction:............................................................................................................3
LOs 1 & 2.................................................................................................................3
Section 1 - Marketing Environment and Planning Process:...............................3
Elements of Marketing Planning Process:............................................................3
Marketing Environment:........................................................................................4
The Extended Marketing Mix (7Ps):.....................................................................5
LO 3..........................................................................................................................6
Section 2 - Segmentation, Targeting & Positioning:............................................6
Segmentation:..........................................................................................................6
Targeting:.................................................................................................................6
Positioning:...............................................................................................................7
LOs 4 & 5.................................................................................................................8
Section 3 – Marketing Mix Analysis:.....................................................................8
References:.............................................................................................................10

Introduction:
The marketing ideas that a company uses for an operative marketing strategy which are agreed-
upon by the different officials, directly or indirectly related to the company are the Principles of
Marketing. The soft drink manufacturer selected for the report is Paisley drinks company. This
report will introduce a brand-new soft drink in United Kingdom named “Pina Colada”.
Reviewing the market analysis of this new soft drink in order to guarantee the success of this
new product in the market and moreover make a global reach of the company is the sole purpose
of this report.
LOs 1 & 2
Section 1 - Marketing Environment and Planning Process:
Elements of Marketing Planning Process:
A systematical and operational approach for planning, estimating and keeping all the marketing
needs and objectives in coordination is the Marketing Planning Process. In most cases, it is an
annual process which covers the whole planning of the year forward. Under this planning
process Paisley Drinks Company needs to find a way to discover the exact needs of the
customers and include it in their new line of soft drinks. This planning process can be outlined or
modelled in a series of steps: Situation analysis to identify opportunities, formulating a
marketing strategy, marketing mix decisions are made, implementation of the plan while keeping
everything under control through precise monitoring, sales and budget.
Situation Analysis: Analyzing the whole situation of the soft drink company which it is in will
serve as the root to identify the needs and demands of the unfulfilled customers. The company
should also keep in mind their own capabilities and the environment in which they are functional
or want to be functional in further future. As a result, the company can take further attempts to
fulfill demands within their own capabilities to advance in the market Example: 5C analysis, Pest
analysis, SWOT analysis etc.
Marketing Strategy: A solid plan to reach out to potential consumers to get paid from them for
the provided goods and services is a Company’s Marketing Strategy. After identifying the needs
of the customers, the company can then develop their strategic plan to fulfill their demand
keeping in account their own limits and capabilities. This vigorous strategic planning helps reach
the targeted audience including also those who have never heard of the brand and thus deliver the
company with an edge over its competition.
Marketing Mix Decisions: The set of actions or tactics that a company implements to promote
its brand value or a product in market is known as Marketing Mix Decisions. It includes: Pricing
decisions, developing Product, distribution to wide range of Places and Promotion. These are
known as the 4P’s of marketing.
Implementation and Control: At this stage of marketing process, all the planning done before
has been implemented and the desired product has been launched. Careful observation of the

market needs to be done to control the market by implementing steps to neglect the effect of any
change in the factors of market.
Budget and Benefits of Marketing: Companies need to spend huge amount on the
advertisement of their product or service for global outreach. Sometimes this advertisement may
be done occasionally during a specific event or time. Before this advertisement one should first
point out the possible profit and expenditure and implement only if there is profit. By
implementing all this steps companies like Coca Cola, Pepsi are now top of the market.
Marketing Environment:
Macro Environment Analysis: The general environment that can affect the functioning
procedure of all business companies is known as the Macro Environment or external factors. To
identify the Macro framework facing an organization, the tool used is known as Pestel analysis.
Each letter of PESTEL represents a set of aspects that directly or indirectly affect every
organization.
Political: Factors which include the issues of the rulings and guiding principle of the government
bodies related to the nutritional information on food and drink are the political factors of Paisley
Drinks Company. The company needs to be aware of the standard of their products to be in par
with the standards provided by the EU for food safety and labeling. One of many other political
factors in the UK include Brexit, which had direct and indirect impact on the trade of Paisley
Drinks Company and impacted the potential opportunities to new market. It may also result in
increase cost of ingredients if fruit farmers can’t get access to the cheaper labor from EU
(O'Carroll,2016).
Economic: These factors include the taxes which may impact Paisley Drinks and Company,
either negatively or positively on their profits. Decent economic situation in UK can put a great
impact in the sales of Paisley lower price and availability of more costly substitutes. Pound has
been weakened due to the ambiguity around Brexit making raw ingredients further expensive to
import which will also distress the rate of sales, if the price of food increases.
Social: Focus of this sector is on the social environment and the emerging trends in it. Majority
of Paisley Company’s drinks contain high level or sugar. These types of drinks can be exported
to cultural countries where people are not that much health conscious and likes high sugar in
their drinks. Moreover, Paisley should be conscious on developing a more health-conscious drink
as the people in UK are gradually becoming more serious in maintaining their health.
Technological: It includes new and more innovative methods of production to include matters
like more time-efficient and cost-effective production. Paisley can make their packaging of
drinks more attractive to lure customers to try out their drinks and improve the quality of
product.
Environmental: One of the key issues of Paisley Drinks Co. is their sustainability. Innovative
packaging, using water in their soft drinks, saving energy and implementing cost-effective as
well as safer means of transportation can enable Paisley to reduce any harmful impact on the

environment. Recycling and reducing the product waste are another means of minimal impact to
the environment.
Legal: Complying with the legal framework of UK which includes taxation, healthy production
and food manufacturing laws fall under this factor. Paying the soft drinks industry levy after
production of 1-million-liter liable drinks per year, safely disposing of food waste, maintaining
traceability of the ingredients and other products they use and following the packaging
regulations are some of the regulations that Paisley Drinks Co. need to comply with (Lawdonut,
2022).
Competitors: The nearby environment in accordance to which the company operates and takes
various decisions in the micro environment or internal factors. Competitors fall under this
internal factor of a company. The organizations or industries which operate the same as Paisley
and produce similar products and services are the competitors of Paisley Drinks Co. PepsiCo
Inc., Nestle, Coca Cola etc. are the prime competitor of Paisley. Recently due to outbreak of
COVID-19 whole competitor list of Paisley including itself has lost more than a quarter of its
value in the market in 2020. Despite the drawback, competitors are coming back strongly after
the lockdown in 2022 (Mintel, 2022).
The Extended Marketing Mix (7Ps):
To achieve the objectives of a marketing strategy a combination of 7 elements of marketing is
developed called the Extended Marketing Mix (7Ps). These are:
Product: Anything that satisfies the needs of a customer is product. Tangible one’s are referred
as goods and the intangible one’s as service.
Price: Setting the selling price considering the quality of the product and its value in the
prevailing market by ensuring a humble profit is very important for successful marketing.
Promotion: Using various promotion channels the company can inform the mass about the
availability of a new product which they are in need of, helping them boosting their outreach and
sales of the new product.
Place: Ensuring the availability of right products to the right customer in the right time, sales and
global outreach of the product can be maximized.
Physical evidence: The tangible elements which a customer can enjoy while interacting with the
company for service or their desired goods fall under this sector. Good interior, quality service
can leave a positive impact on the customers
Person: Staff those who interact with the customers include in this section. Good behavior can
prove loyalty to the customers and further attract them.
Process: The series of activities and actions needed to provide the customers with their desired
product, by doing in the right process can gain customer satisfaction and further work efficiency.

LO 3
Section 2 - Segmentation, Targeting & Positioning:
Segmentation:
Sectioning the target market in smaller groups which may share any type of similar
characteristics is known as segmentation. Market for the new soft drink of Paisley Drinks
Company for B2C and B2B cand be segmented as below:
Business to Consumer: Also known as B2C is a type to marketing model where the products
are directly provided to the end user who bought the product for their personal use, directly from
the producer. This model has 4 key factors of segmentation:
Behavioral Data: It takes into account how the consumers like to behave or inquire about their
desired products by means of surfing web social media etc.
Geographical Data: Paisley can target the consumers by segmenting them according to their
specific locations and personalize their offers and deals area wise. It will be helpful while acting
with less budget.
Psychographic Data: Grouping customers according to their personality, daily lifestyle and so
on, Paisley can communicate with the targeted audience easily by using the stored data.
Demographic Data: Paisley can personalize their offers and deals more easily by focusing on
gender, cast, age, religion and so on.
Business to Business: Marketing of products or services from one business to any other business
or organization is known as B2B market model. It has 3 key areas of segmentation:
Profile data: Similar to B2C’s demographic data, but goes further on including the company
size, demands and goals, tech used etc. as well as their business capabilities and achievements.
Intent Data: It focuses on the companies whose intent in market is to function on the products
and services which are similar as their own. If the data shows activity around a soft drink above
average then Paisley can conclude that they want to buy from them.
Engagement Data: Similar to B2C’s behavioral data but includes more specific business-
oriented activities like interactions, lead forms, email engagement and so on.
Targeting:
Market positioning or targeting denotes the process through which one can evaluate and select
market segments for better reach, customer experience and satisfaction. \Before targeting any
audience at first Paisley needs to figure out which audience or which segment will buy their
product. The work is to determine as closely as possible, evaluating exactly who those people
are, and then target their products and marketing efforts towards them.
Later on, the first thing that needs to be done will be refining their product to an utmost state,
making it on par with the target demands that they only want to full fill that specific demand. For

example, if Paisley wants to introduce a refreshing drink, they can’t also make the drink
including dessert type flavors, they only need to focus on refining the perfect refreshing drink.
Paisley Drinks Co. also needs to keep in mind that people will purchase their products if they
meet the 3 basic reasons of purchasing a good or service: satisfying the customers needs, solving
their problems and last but not the least, to make themselves feel good.
The marketing strategy of Paisley Drinks Co. will be a very important factor in determining the
success of it. As they are a soft drink company their new product should be something
refreshing. Their main focus of target will be the teenaged. Moreover, making it sugar free and
health friendly, they can also target the sports enthusiasts and the health-conscious people who
work out more or less regularly and is in need of a refreshing drink and provide them necessary
electrolytes. Moreover, they can address a slogan mentioning their promise to the targeted
audience.
Positioning:
In marketing, the term positioning is referred to the process or applications through which the
Companies or Industries try to create a positive image of their product, service, brand value and
organization in the minds of their target. Paisley Drinks Co. can position their soft drink on the
basis of 2 platforms: Competitors and Consumers.
Competitors: Positioning contains 3 steps: revealing competitive advantages to create a
position in the market, selecting the right competitive advantages and selecting a convenient
positioning strategy and providing effective communication and distribution to the market
concerning the selected position (Karadeniz, 2009).
Paisley Drinks Co. can identify their uniqueness from other competitors and work towards
improving and making a face out of it. They can then differentiate their previous position in
market and work accordingly to the way which will be beneficial for their new position. Further,
the company needs to identify the impact of other competitors and take safe steps to make a
position of their own carefully. By following these steps Paisley can get a broad idea of the
whole market situation and then can develop new strategies to position itself.
Consumers: When the advertisements, campaigns are done keeping prime focus in targeting the
buyer himself i.e., the user of the product. Paisley Drinks Co. can include attributes or consumer
features in their product related with the target audience segment and thus position their soft
drink by their quality and so on. It will further help to categorize their product on the market and
will create a brand image of the product in the mind of the customers allowing them to identify
the positioning and compete in brand value.

LOs 4 & 5
Section 3 – Marketing Mix Analysis:
Marketing Mix is a conceptual framework which highlights the principal decisions that a
company needs to make to suite the demands and needs of the customers. It can be used in both
long- and short-time strategy analyzing (Su-Mei, 2011).
A creative design on the extended (7Ps) marketing mix for the soft drink based on the targeted
audience and further relevant environmental factors i.e., macro or micro elements is given below:
New Soft Drink Product
Product Bitner and Booms (1981) has stated that the ‘core’ which must provide a
certain value to the customer, tangible or intangible. Basically,
introducing new products or developing new products is the main theme
of it. Paisley Drinks Co. will be introducing a new soft drink which will
be a tangible good. They can develop their soft drink taking in the basic
needs of the customers and also keeping the macro and micro elements in
their favor to do so. Paisley also needs to take into consideration the
packaging of the soft drink. Every product can be compared to a life
cycle having a growth stage until their market saturation occurs. So, to
keep the product demand in the market ongoing and further more
increase it in the future, various strategies are to be implemented to
differentiate the product.
Place The location where a product or service can be purchased is the place.
Paisley Drinks Co. need to sell the newly introduced soft drink in the
right place at the right time to the targeted customers. It can also be
referred as the distribution channel, like physical stores, vending
machines or through online marketing. Availability of the soft drink
around parks, gyms, malls etc. through vending machines will result in
greater outreach of the soft drink. Having an attractive packaging, the
more the audience will see the more they will tend to try it out. Selecting
the most effective distribution channel is also important. They need to
determine an effective way keeping in mind the distance, type of
product, time required to reach the destination and the cost associated
with it for successful distribution.
Price The amount of appropriate money the customer pays in return of the
product is its price. According to Sammut and Channon (2014), This
pricing will fall under basis of 3 categories: cost-based pricing,
competition-based pricing and common factors. The sole purpose is to
set the price in such a way that the total revenue earned will be able to
cover the cost of the operations and earn a moderate amount of profit.
Differentiating the product in one hand, Paisley Drinks Co. can increase
the price of their new product then their previous ones, maintaining
quality drink. They also have to keep in mind if the customers of that
specified segments feel justified to pay that particular amount for the soft
drink.

Promotion Effective communication with the targeted market is very much
important for the success of newly introduced soft drink and its business.
All types of communication that Paisley Drinks Co. may use to advertise
directly or indirectly their newly made soft drink is called the promotion
of that particular soft drink. Advertising falls in any types of promotion
that is to be paid for after or before wards, like through cinema
commercials, internet advertisement, social media advertisement, using
means of social influencers etc. Word of mouth is another source of
informal communication through the soft drink can be advertised
indirectly without any payment. Hiring salesman often boosts word of
mouth advertisement through providing a general outline of the soft
drink to lure the targeted customers to try it out.
People All people involved from making of the soft drink, to the selling and then
consuming includes in this sector. Each and every people of each and
every step is very much important for Paisley Drinks Co. For example,
workers, salesman, producers, management, consumers etc. By
developing the behavior of the salesman, confident attitude while
advertisement and responsible production, Paisley Drinks Co. can earn
customer satisfaction and loyalty very easily. It also defines the market
segmentation of Paisley Drinks Co., mainly the demographic
segmentation is it’s point of focus. Demographic segmentation variables
include: Age, Gender, Family Size, Family Life Cycle, Income,
Occupation, Education, Generation, Ethnicity, Nationality, Religion,
Social Class (Goyat, 2011).
Physical Evidence Muala & Qurneh (2012) has revealed that the environment in which the
service and any tangible goods that facilitate the performance and
communication of the service are delivered is called the Physical
evidence factor of the 7Ps. It is very important for Paisley because the
customer will normally judge the soft drink through the physical
evidence he or she is observing.
Process The procedure through which service or any goods are provided to the
customer, the mechanism and flow of activities behind it includes the
whole process of 7Ps. Paisley needs to outline the functions and activities
from production to reaching the soft drink to the targeted customer for
efficient and smooth functioning.
Paisley Drinks Co. should conduct this marketing surveys, before introducing the new soft drink
in market for efficient and smooth results. The sequence of these 7Ps is very much important in
the life-cycle of the soft drink to be introduced i.e., Introduction, Growth, Maturity and Decline.

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