Marketing Management Assignment 2: Irn-Bru Value Analysis

This report presents a comprehensive marketing analysis of Irn-Bru, a popular carbonated soft drink in Scotland. The report begins with an introduction to value analysis and its application to Irn-Bru, followed by a context map outlining the scope of the study. It then delves into segmentation analysis, identifying key demographic, behavioral, psychographic, and geographic segments within the Scottish market. A detailed customer persona is developed, focusing on the primary and secondary target markets, their characteristics, and preferences. The report further examines Irn-Bru's value proposition, highlighting its strengths and positioning within the market. A customer journey map illustrates the customer's experience, and a summary map consolidates the value analysis findings. The report concludes by synthesizing the key insights and recommendations for Irn-Bru's marketing strategy.

Running head: MARKETING MANAGEMENT
Marketing Management
Assignment 2
Student’s name:
Name of the university:
Author’s name:

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Table of Contents
1. Introduction..................................................................................................................................2
2. Context map.................................................................................................................................2
3. Segmentation analysis.................................................................................................................3
4. Customer Persona........................................................................................................................6
5. Value proposition.........................................................................................................................7
6. Customer journey map...............................................................................................................11
7. Summary map of the value analysis in the market....................................................................12
Reference list.................................................................................................................................14
Appendix........................................................................................................................................16

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1. Introduction
Value analysis is an approach to develop the value of a product by understanding its
components and their costs. Value analysis approach tries to seek improvements to the elements
by decreasing their costs or increasing the functions of the value (Covin et al. 2015). In a market,
the value of is analysed through the ratio between customer satisfaction and cost of that function.
In this study, Irn-Bru is the product that has been chosen for this study to analyse the value of the
product in the Scotland market. The aim of the study is to analyse the value of Irn-Bru in the
existing market of Scotland. Irn-Bru has its own impact on the Scotland market as the customers
of the Scotland cannot think their lives without the Irn-Bru. Irn-Bru is the carbonated soft drink
that stands number one in Scotland market. In the UK market, it is ranked as third after Coca-
Cola and PepsiCo. A.G. Barr is the manufacturer of the products and Irn-Bru is manufactured in
five different factories in Russia and it has a license to make the products in USA, Canada and
Norway also apart from Scotland (Irn-Bru.co.uk 2017). In value analysis, the marketers of the
product can make orientation in manufactured items and it provides services to give its complete
customer services.
2. Context map
In this study, the value analysis of Irn-Bru is going to be done based on certain
segregation. In the first part of the study, segmentation analysis will be done with targeting one
customer segment of Irn-Bru. After that, the analysis of selected target market will be explained
from the perspectives of Irn-Bru in the Scotland market. In the following chapter, customer
persona will be described based on Irn-Bru as this can be referred to as marketing personas of an
organisation. In this section, the customer persona of Irn-Bru will be explained with the help of

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marketing, products, services and by using this, internalise of ideal customers of an organisation
can be identified. In the following section, the value proposition of the product Irn-Bru will be
explained as the value proposition is the promised value to be delivered to the customers. In the
last section, a summary of the overall value analysis of Irn-Bru will be conceptualised.
Figure 1: Context map
(Source: Self-developed)

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3. Segmentation analysis
As stated by Dolincar et al. (2014), segmentation is the method of segregating the
potential customers or markets into specific groups and it helps the organisations to target the
customers in a specific way. In market research, market segmentation is a basic component, in
the existing market of Scotland; Irn-Bru can divide the market into some different customer
segment. Among the customer segmentation, an organisation chooses one or two target customer
groups in order to target specifically. This market segmentation provides the benefits to take
business decision for a specific set of customers with limited resources that result in market
profitability. According to Efrat et al. (2017), market segmentation can reduce the risk of
ineffective marketing and it can divide the market based on the features of customers.
Demographic segmentation:
Demographic segmentation is the most-used segmentation by the organisation in order to
target the customers. In this segmentation, customers are divided into age, gender, socio-cultural,
race, religion and occupation. In the demographic segmentation, the organisation can target the
customers by the occupations and the income group basis. In Scotland, Barr’s management has
already made partnership with The Football League and in national TV campaign (Irn-Bru.co.uk,
2017). Therefore, the target market of this soft drink is young generations mainly. Irn-Bru can
segregate the market in age-basis as the customers with young age (18-34) buy the soft-drink
mostly. In addition, the price brackets of the products make the products distinctive for the
customer section. In addition, young professionals like to have soft drink that they can enjoy
outside.
Behavioural segmentation:

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In the behavioural type of segmentation, the customers want value for money products
from the organisation. The behaviours of the customers are the main criterion for targeting a set
of target customers (Hollensen 2015). An organisation can divide the target group by rate of
usage of the products, benefits sought from the products, loyalty status and readiness to purchase
the products. As the product, Irn-Bru costs less and the customer size of the products is large. In
addition, Scotland people like the soft drink Irn-Bru and it is regarded as the other national drink
of the country apart from Whiskey. Behaviour segmentation can be done based on the decision-
making process of the customers and Irn-Bru can target the customers who are enthusiast and
buy the products in daily basis in their daily life. In Scotland, the management of Barr has been
targeting the customers who can enjoy in festive occasions and strengths and personality of
brand image of Barr leads towards this. In behavioural segmentation, Irn-Bru can target market
during festival occasion as the buying pattern of the customers become different in festival
(Kienzler 2017). The customers make a ‘benefit segment’ in choosing any products and in daily
life; the customers buy the soft drink in refreshment.
Psychographic segmentation:
In psychographic segmentation, an organisation can segregate the customers by the
personality, lifestyle, attitudes and classes of the customers. In Scotland market, the customers
believe in the products of Barr as the Irn-Bru has been on the market since 1901. The customers'
personality in choosing any products is very important as the customers' interests and activities
are very important. The customers who go outside in daily activities or the people who like to
enjoy soft drink can purchase this.
Geographic segmentation:

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This is the segmentation in which an organisation can segregate the market based on
geographical location (LaPlaca 2017). In geographical location, Irn-Bru is available in almost all
parts of Scotland as the supply chain is smooth in Scotland for this organisation. This product in
the Scotland is quite famous and people buy this product before PepsiCo and Coca-Cola. The
management of the organisation supplies the products in each part of Scotland to increase the
visibility.
4. Customer Persona
Primary target market
Irn-Bru can target the demographic target group among the customers. In demographic
target market, the Irn-Bru management can choose the age-based segregation and the middle-
income group. In age-based target consumers, this soft drink management can target the young
customers who are aged between 16 and 30. In this age, the people are outgoers and they can
target the customers who go outside and need to buy soft drinks.
Secondary target market
In secondary target group, the organisation can target the middle-income group as the
middle-income group people will buy the soft drink more than a rich section. Rich people buy
the products which are costly and nutrition-based products. In addition, the middle-income group
can spend money on soft drink. Irn-Bru products are wide-sell products in Scotland in order to
target the sales and marketing messages to the particular target market.
The customers expect the brands to understand their perspectives and preferences. The
customers also want that the organisations can fulfil the needs and wants. The customer's

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personas are increasingly embraced the way to see the products and offerings from the
customers' point of view (Magrath 2016). Customer persona is related to the customers’ journey
by applying the insights of the customers. Irn-Bru products are available widely in the Scotland
market and through customers’ persona; the organisation can be able to how and why the
customers interact with the company. Customer's persona is more like a database where the
customers can input their opinion based on the buyers, partners and journey mapping.
Customer persona of the organisation Barr for the product Irn-Bru can be basic as they
can take various forms. There are different types of buyers of the organisation as the products
have been available in the Scotland market for long. Irn-Bru can use the behavioural drivers as
they can encompass consumers’ goals and the organisation should know about customers’
accomplish. Behavioural drivers can be about journey to find the business from the customers
through focussing on the research. Moreover, the Irn-Bru needs to know about customers’
obstacles to purchase a product. Moreover, Irn-Bru needs to know about customers concerns and
hesitation before purchasing the products. In soft-drink, customers think that it contains high
added sugar that could be harmful for health. Sometimes, customers face issues while they think
the soft drink contains high preservative or added colours. The management of the product Irn-
Bru can impact on the decision-making process of the customers to set the mindset of the
customers. In addition, the customers always come to buy a product with expectation and the
shoppers want to thrill with refined experiences (Montonen et al. 2014). In taking the customers’
responses, Irn-Bru can do customer surveys through phone calls or asking information through e-
mails. In addition, social media is an important channel to ask about customers’ responses. Web-
exit surveys can also be helpful for the managers of the organisation to learn about customers’

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persona. It is necessary that Irn-Bru should maintain a database in order to identify the
behavioural drivers, obstacles to purchasing and expectation from buying experiences.
(Refer to Appendix for Consumer Persona)
5. Value proposition
Customers evaluate the products to see the benefits of the products. Before the customers
can develop the strategy for a firm to market, the organisation needs strategic plan. In order to
make strategic plan, the organisation needs to make value proposition. Value proposition is about
a product’s superiority that helps the products to go beyond the competitors’ (Osterwalder et al.
2014). In order to shape the strategic plan and marketing option, value proposition is very
important for the organisation. Irn-Bru product is famous in Scotland market and it has multiple
manufacturing units in Scotland. Value proposition can lead to profit for an organisation as the
main goal of an organisation is to focus on external environment of the organisation. Before,
value proposition, an organisation differentiate the market segments, among the market
segments, they choose one or two target markets. In order to reach the target customers, the
management uses value proposition. In value proposition, the management tells each group of
customers why they should buy the products. However, in case of Irn-Bru, the value proposition
would be trust and faith of the customers as they are in market more than 100 years (Irn-
Bru.co.uk 2017). Moreover, another value proposition of the product Irn-Bru is that the products
are low-priced and it is easily gettable to the customers. The supply chain of the organisation is
larger and it is available in all regions of the Scotland. Likewise, Irn-Bru offers the products to
the all segments of the customers as the soft drink can be consumed by all. It does not affect the
health at large. It is available in wide range and the consumers can get the products whenever

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they want. The organisation has taken the differentiation strategy and they make different types
of bottles and cans in order to target large customers’ base (Summers and Smith 2014).
Value proposition: Improve the company-customer relationship; improve the revenues
and marketing opportunity for the organisation so that the products could be available for all
sections of the customers.
Positioning: Irn-Bru uses the largest supply chain for the organisation so that the product
could reach all customers in different regions. Positioning statement of Irn-Bru is that it is a
brand that really cares about the customers. The organisation is thinking about to start diet soft
drink so that the aged people can consume the products. In addition, the younger people like it
being cold and the organisation have been serving refrigerator to the supply chain.
Positioning statement: Irn-Bru aims to bring the world a portfolio of quality beverage
brands that can anticipate and satisfy the people's desires and thirsts. In the previous occasion,
the Barr corporate brand tried with different brand name ‘Iron Brew', however, the corporate law
did not let the name be granted as this soft drink is not brewed at all. Irn-Brew wants to
maximise long-term return the shareowners while being mindful of the overall responsibilities of
the organisation.

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Figure 2: Value proposition framework
(Source: Self-developed)
In the Scotland, the product Irn-Bru drives craze as the bottle of Irn-Bru makes the people
fall in love with the carbonated drink. Therefore, the main values that the branded product Irn-
Bru creates are product leadership as it is the best product in the Scotland market. Even the
Coca-Cola and PepsiCo Company cannot beat the Irn-Bru in the sale. The second value of the
product is operational excellence as it has been creating best total cost as the operation
management of the organisation in the supply chain, inventory control and waste management
are perfect. Customer intimacy of the Irn-Bru is the third important thing that provides a best
total solution to the organisation. Moreover, the customer intimacy provides the benefits in
customer satisfaction as it reflects in higher selling parameter (Payne and Frow 2014). Irn-Bru
wants to manage the marketing mix perfectly as each element in marketing mix helps to provide
values for the organisation.

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Product Appeal, Services, Brand, Artefact
Price Affordability, cash price, shopping cost and switching cost
Place Access, Touch Points, atmosphere, processes
Promotion Awareness, activation, media and influence
Table 1: Value proposition
(Source: Self-developed)
6. Customer journey map
Figure 3: Customer Journey Map
(Source: Self-developed)
Customer buying decision is based on the five stages, problem recognition, search, awareness,
purchase and post-purchase. Among all the stages, the customers need to identify the needs to
purchase a soft drink and that could be facilitated by the advertisements. The customers search
for different options in order to buy the products. In the searching step, Irn-Bru must be kept

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posting communication to the customers and the customers must take a decision in order to
purchase the products on time. After purchasing the products, the quality of the products makes
the customers buy the products once again. Research and consideration is the process where the
customers visit different products to identify which one would be perfect for them. The
customers can search online to view the reviews of the products. After checking the reviews on
the internet, the customers’ application processes start.
7. Summary map of the value analysis in the market
Figure 4: Summary map of value analysis
(Source: Self-developed)
In Scotland, Irn-Bru is the largest selling product in carbonated soft drink and the value
of the product is set by the manufactured team and process services of the organisation. In this
study, market segmentation of the organisation has been conducted based on the four different

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markets of the organisation. Among all four segmentations, Irn-Bru chose the demographic
segmentation. In demographic segmentation, it has chosen the age and income group for the
customers to target. Among the age group, the Irn-Bru has chosen the young age group and in
income, they have chosen middle-income group who can spend money on the carbonated soft
drink. The organisation identifies the priorities of the customers and it can include the external
customers. In the function phase, the organisation needs to quantify the findings based on the
customer persona. In addition, the innovation and creativity are needed in case of the value
proposition as it emphasises on the customers' buying decisions. The value proposition must
satisfy the basic function with creative technique. It represents the confrontation ideas by the
organisation to evaluate the projected values of the organisation. Irn-Bru can use the brand name
in value proposition as the brand name of the organisation is higher than Coca-Cola and PepsiCo
in the Scotland market. The value could be analysed by the firm using Pareto and Pert diagrams.

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Reference list
Covin, J.G., Garrett, R.P., Kuratko, D.F. and Shepherd, D.A., 2015. Value proposition evolution
and the performance of internal corporate ventures. Journal of Business Venturing, 30(5),
pp.749-774.
Dolnicar, S., Grün, B., Leisch, F. and Schmidt, K., 2014. Required sample sizes for data-driven
market segmentation analyses in tourism. Journal of Travel Research, 53(3), pp.296-306.
Efrat, K., Gilboa, S. and Yonatan, M., 2017. When marketing and innovation interact: The case
of born-global firms. International Business Review, 26(2), pp.380-390.
Hollensen, S., 2015. Marketing management: A relationship approach. Sydney: Pearson
Education.
Irn-Bru.co.uk. 2017. IRN-BRU | Xtra. Irn-bru.co.uk. Available at:
<http://www.irn-bru.co.uk/all/xtra> [Accessed on 23 Nov. 2017].
Kienzler, M., 2017. Does managerial personality influence pricing practices under
uncertainty?. Journal of Product & Brand Management, pp.34-56
LaPlaca, P., 2017. Industrial Marketing Management. Industrial Marketing Management, 36(7),
p.843.
Magrath, A.J., 2016. When marketing services, 4 Ps are not enough. Business Horizons, 29(3),
pp.44-50.

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Montonen, T., Eriksson, P., Asikainen, I. and Lehtimäki, H., 2014. Innovation empathy: a
framework for customer-oriented lean innovation. International Journal of Entrepreneurship and
Innovation Management, 18(5-6), pp.368-381.
Osterwalder, A., Pigneur, Y., Bernarda, G. and Smith, A., 2014. Value proposition design: How
to create products and services customers want. New Jersey: John Wiley & Sons.
Payne, A. and Frow, P., 2014. Deconstructing the value proposition of an innovation
exemplar. European Journal of Marketing, 48(1/2), pp.237-270.
Summers, J and Smith, B 2014, Communication skills handbook. 3rd edn, John Wiley and Sons.
Wilkinson, F. ed., 2013. The dynamics of labour market segmentation. Amsterdam: Elsevier.

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Appendix
Figure: Customer Persona