Purity Soft Drinks: An Analysis of Marketing and Strategy for MKT4A2

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This report provides a comprehensive analysis of Purity Soft Drinks' marketing strategies, examining the company's use of traditional marketing tools and their effectiveness. The report begins with an overview of the company, its objectives, and the issues it faces, followed by a market description and SWOT analysis to understand the competitive landscape. It explores the company's use of technology in marketing, including both past and present strategies, and recommends potential technological advancements. The report then delves into the marketing plan, including product segmentation, positioning, and the marketing mix, before concluding with recommendations for the company to adapt to modern marketing trends. The analysis considers both traditional and digital marketing techniques, offering insights into how Purity Soft Drinks can leverage its existing strengths while embracing new opportunities in the market. The report uses primary research and survey data to support its findings and recommendations, providing a well-rounded view of the company's marketing performance and future prospects.
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Running head: MARKETING AND STRATEGY
Marketing and Strategy
Name of the university
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1MARKETING AND STRATEGY
Executive summary
The paper intends to present the issues with traditional marketing faced by Purity Soft
Drinks, UK with the support of a primary research and survey. The report has been described
usefulness and effective nature of the traditional marketing tools by Purity soft drinks
following a brief summary of the organisational objective and issues first. Market description
and a SWOT analysis have allowed the readers understanding the issues and opportunities
better. Traditional usage of technology have been elaborated along with both the traditional
and current STP strategies. Finally, a marketing mix has assisted exploring various
communication channels strategically and addressed the issues with digital marketing tools.
As per the recent marketing trends, this report has produced the feasibility of applying or
diversifying new marketing DNA with the old ones and according to that, recommendations
have been suggested.
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2MARKETING AND STRATEGY
Table of Contents
Introduction....................................................................................................................4
Overview of the company..............................................................................................4
Issues..........................................................................................................................5
Opportunity................................................................................................................6
Market description.........................................................................................................6
Macro environment: factors.......................................................................................7
Micro environment: Factors.......................................................................................8
Swot analysis of Purity soft drinks.............................................................................9
Feedback collected from primary research..................................................................11
Use of technology in marketing...................................................................................11
Chosen technology in marketing..............................................................................11
Recommended technology in marketing..................................................................12
Marketing plan.............................................................................................................13
Product segmentation...............................................................................................13
Micro segmentation..................................................................................................13
One to one segmentation method for future.............................................................14
Positioning................................................................................................................14
Value proposition.....................................................................................................15
Essential p’s of marketing............................................................................................15
Conclusion....................................................................................................................17
Recommendations........................................................................................................18
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3MARKETING AND STRATEGY
References....................................................................................................................20
Appendices...................................................................................................................23
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4MARKETING AND STRATEGY
Introduction
The report intends to review the marketing strategies chosen by Purity soft drinks for
over the past decades. Acknowledging the role of marketing this report will try to explore the
techniques, which the company, Purity soft drinks Puritysoftdrinks.co.uk (2018), has been
using since its days of beginning. Purity soft drinks has been operating their business since
1892. The first innovative marketing stunt was noticed when in a popular market of
carbonated soft drink they introduced range of fresh fruit juices. Purity soft drinks has
experimented with the ingredients to launch several soft drink products and diversified the
idea from having cola as a refreshing beverage to fruit juice with active herbs to approach the
health conscious generation. This strategy, eventually, has been helping them to create a
competitive position since the days of beginning. Apart from current digital strategies, it has
been depending on old DNA of marketing, which suggests their marketing efficiency.
In the due course, the report will describe the usefulness and effective nature of the
traditional marketing tools by Purity soft drinks following a brief summary of the
organisational objective and issues. Market description and a SWOT analysis will allow
understanding the issues and opportunities better. As per Sharma, Koc and Kishore (2014),
Traditional usage of technology will be discussed along with both the traditional and current
STP strategies. Finally, a marketing mix will assist exploring various communication
channels strategically. As per the recent marketing trends, this report will produce the
feasibility of applying or diversifying new marketing DNA with the old ones and according
to that, recommendations will be suggested.
Overview of the company
Long before such technological development, businesses were successfully executing
business operations and gained revenue as well. Communication process of Purity soft drinks
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5MARKETING AND STRATEGY
was so advanced that with the help of key marketing strategies, which has made the brand
recognizable in countries overseas as it is in its home ground. The journey of 124 years of
serving the UK population with fruit juice and juice beverages was not easy yet remarkable
based on the strategies they used in terms of making the brand popular locally. The business
is collaborating with local farmers as well in terms of raw materials (Oberholtzer et al. 2014)
. The bottle, the use of font, innovative names according to ingredients; everything is timeless
and still maintaining the tradition apart from few modifications. Besides, keeping the
consumer price almost same for the past twenty five years and successful in proving the same
quality throughout, is undoubtedly, claims customers’ attention and increases brand value.
Keeping the same quality and using creative advertising campaigns Purity soft drinks has
been operating the business since past 124 years in various national locations. In addition,
their franchise model has been proven as successful as well in terms of expansion. Moreover,
Purity soft drinks has been using music for decades for the marketing purpose by
collaborating with music shows and sponsoring music festivals or composing a theme jingle
even.
Therefore, it can be said after reviewing Tiago and Veríssimo (2014), that long before
such digital strategies the company gained much public exposure. That is why; this company
is suitable because as described Purity soft drinks has been using old marketing DNA for a
long span of time successfully. However, considering the increasing competition and
dynamic preferences of the consumers Purity soft drinks is needed to leverage technology
more if the organisation wants to sustain for more two decades in such a competitive business
environment.
Objectives
The market trend is in favour of low calorie, low sugar drink rather nowadays major
part of the potential customers prefer a beverage, which has a nutritious value as well.
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6MARKETING AND STRATEGY
In order to combat the issue the company sets its objective to increase the awareness
across global market within a span of next six months and hence opportunity of an
increased revenue can be identified along with the market share.
Acknowledging this opportunity, organizational objective is to increase the market
share more than the previous decade by at least 5% at the end of the current year.
Moreover, goal is to increase the sales unit as well by 20% within next two years.
Issues
The current issue company is confronting with is that the use of sugar as one of the
main ingredients of the products. The product has been diversified to Coke zero and
Purity soft drinks life reducing the sugar quantity.
According to Reisch, Eberle and Lorek (2013) in long-term the issue will raise in
terms of product innovation and sustainability.
In a situation like that, to identify the key performance indicator a SWOT analysis
would be helpful to understand the contemporary variables of the market.
Key performance indicator
Variable aspects Description
Customer satisfaction Purity fruit juice is the stable
condition of existing customer base and the
number of new customers the company is
successful to attract and the issues related to
them. The operation regarding customers’
service like meeting the requirements of
perceived value of the customers determine
the annual performance of a company in
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7MARKETING AND STRATEGY
terms of both profitability and customers’
satisfaction.
Innovative product range to capture value In case of Purity fruit juice brand, it can be
said, well marketed innovative products,
fresh and sugar free original drinks,
vegetable and health tonics if gain success
to approach the market need then it can
boost the company’s performance.
Fulfilment of the agendas Accomplishment of all the objectives
regarding increasing market share and sales
unit within the scheduled time will be
regarded as company’s good performance.
Market overview
The industry of fruit juice is currently running on a positive note and businesses are
experiencing growth centrally for the change perception of people regarding their lifestyle.
People have become more conscious regarding health issues. Therefore, consumers prefer
healthy beverages such as fruit juice, vegetable drink and health tonics to remain fit and
happy. Considering that opportunity, the business of Purity fruit juice has grown up to 20%
from previous decade. People are showing interests in blending of fruits and vegetables in
one drink that is capable of mitigating health issues. Since, 1892 the company has been
operating yet the current situation is favourable for rapid business growth. The current market
of soft drink is promising as far as the consumer behaviour is concerned.
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8MARKETING AND STRATEGY
Market description
Purity soft drinks is competing in domestic market mostly, targeting the young
generation who are health conscious, children and working professionals. The average age of
the target market is from 08 to 55. According to the market trend, a reading of Slining,
Mathias and Popkin (2013) suggests, consumers are prone to have a beverage that has
nutritious value rather than being carbonated one. The organisation positioned itself as an
agent of sharing happiness and as if the product helps to lighten up the mood along with
serving nutritious benefits. The main competitors are other carbonated or energy drink
companies like Vimto and of course, nutritious fruit juice products can be considered as
competitors. However, according to Alviola et al. (2014), the trend among the consumers has
also been noticed that with the increasing threat of obesity people like to keep such juices
handy in order to quench their thirst as well as demand of nutrients.
Macro environment: factors
Political regulations have been changed regarding the trade rules, which is
consistently affecting the importation and exportation of raw materials. However, as it
has become mandatory to mention nutritious value on the packaging several market
opportunities are increasing.
People irrespective of the economic background can afford this drink, which has been
proved by the increased sale of the product in the time of recession as well.
Although, Purity soft drinks is a fruit and botanical herbs infused drink, a social trend
has been identified among the older population and diabetic people to avoid such
drinks as it contains sweet fruits and sugar. Purity soft drinks has diversified the
products into zero sugar or health tonics using bitter gourd, mint leaves have helped
them to capture the market value. Moreover, as described in Ramos et al. (2015),
using the nutrition information in the packaging the sales has been increased.
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9MARKETING AND STRATEGY
Legal changes are responsible for the decreased business as well. As it is a small local
operator, changes in income and corporation tax affected the market position of Purity
soft drinks in a negative way. Based on change in US tax system, it has influenced
business of the juice company.
There are clear instructions in their packaging on how to depose the cans and bottles
to remain environment friendly. Recycled bottles and cans create positive effect on
both the environment and customers’ who are conscious about environment
conservation.
Television advertisements and radio broadcasts were the technological advantage that
the company used to opt for. Besides, print media was the biggest channel for
marketing.
Micro environment: Factors
The mission and vision of the company itself suggests strong business ethics. Their
policy is to satisfy the employees in order to make the customers satisfied.
As the company is almost 125 years old, the organisation has experienced a huge deal
of transformation regarding the nature of marketplace and the way promotional
activities have been designing by the executives since the beginning. The brand has
already established its brand value widely and well recognised too. As described in
Bojei et al. (2013), it has become possible due to establishment of good relationship
with the consumers by providing them the best possible quality.
Suppliers must be ethical and a trustworthy relationship is important in order to serve
the market according to the changing requirements.
The biggest competitor of Purity soft drinks is other giant soft drink brands and the
main sector of competition is their pricing strategy. Although, as described in
Vimto.co.uk (2018), Vimto have not followed the product diversification strategy
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10MARKETING AND STRATEGY
based on fruit juice to make the business sustainable. Otherwise, for the sake of
marketing strategy, yet they are offering some tangy raspberry and grape flavours
along with health tonics, which fit the energy of young generation rather than being
served in breakfast tables mostly (Kit et al. 2013).
Swot analysis of Purity soft drinks
Strength Weakness
Purity soft drinks is maintaining
their brand identity for more than
100 years with its vast local
presence.
The brand has always been
maintaining smart advertising
strategies like removing added sugar
from the ingredient list or promises
to keep people healthy and fit. With
such national wide distribution
network, Purity soft drinks has an
adaptable nature with versatile
range.
There is a lot of scope available for
marketing for Purity soft drinks
officials using the psychological
component of people with a clean,
healthy and contemporary approach.
In spite of having vast national
presence, the company has not yet
explored the international market
due to its small resources, lack of
balance in financial and marketing
sector.
Moreover, immense competition
with giant soft drink brands is
increasing day by day. Products are
a little expensive as compared to the
other carbonated drink because of
the ingredients.
As the products are fresh and pure,
use of fewer preservatives indicates
its short shelf life.
The supply and distribution chains
are limited along with workforce.
Even if the trend is to consume
healthy beverages, being a small
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11MARKETING AND STRATEGY
company Purity fails to balance the
demand and supply occasionally.
Opportunities Threats
A great deal of marketing and
collaboration opportunities have
been found based on their strength
and to improve the weak areas.
Several cola brands are interested in
product diversification targeting the
health related issues of society.
Purity can think for approaching
Cola brands for collaboration or
partnership in order to explore
global opportunities.
Purity soft drinks must think for
their less marketed products first
through technological help. Weak
and old marketing DNA can lead
towards less awareness about their
diversified products.
The supply chain management and
its establishment in a convenient
place must be done in order to
ensure lower transportation cost and
The threat comes from the consumer
behaviour mostly. The market trend
suggests that if Purity soft drinks
does not improvise their old
marketing procedure and business
operations the revenue will not
increase and the business growth
will remain in a stagnant place.
Sourcing raw materials and lack of
efficient workforce strength in
operation management are causing
trouble. Increasing price and
taxation policy are additional
reasons of price hike, which might
be one of the reasons for shifted
interested of customers.
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