Executive Summary
Irn Bru, a UK (Scotland) soft drink manufacturer and distributor, after doing the research, we, in a group presentation, identified France as an excellent opportunity for its international market expansion plan. The decision is backed up by France’s consumer adaptability and disposable incomes. The ideal partner to support this expansion is E.Leclerc, given the brand’s strong reputation and extensive reach. Irn Bru needs to adopt a market mix that aligns with global trends of health consciousness and adaptability to appeal to a broader market base. Entering into a direct arrangement with E.Leclerc, ensuring effective communication strategies, aligning with emerging trends, and creating a practical social media approach will enable seamless expansion.
Introduction
This report is about IRN-BRU’s marketing strategy in France, the country we selected after our research. The report begins by examining the company’s background and exploring market-entry strategies to penetrate the French market. The existing trends in the global beverage industry will be discussed. Two global trends, the communication strategy of IRN BRU for France and the country’s marketing mix, will also be discussed. The end parts of the report will provide recommendations and conclusions on what the company should do moving forward.
Background of the Company
Irn Bru was founded in Scotland as a carbonated soft drink combining citrus, caramel, bubble gum, and iron-brew. However, Irn Bru removed iron oxide from its secret menu over the years to ensure the blend remained natural and artificial. Irn-Bru is one of the best-selling soft drink companies in the UK, alongside Coca-Cola and Nestle (Jonatan Pinkse, 2019). Over the years, the drinks have been exported to several countries, including France, where they have been positively received. The rationale for selecting France as the distribution hub for this beverage is that it has a growing consumer base, is committed to free trade, and has a highly educated and adaptable workforce.
Market Entry Strategy
A marketing entry strategy is the plan a business adopts to enter a new market. The market entry strategy an organization chooses depends on the nature of the business it operates in and the targeted region for entry. A proper entry strategy could lead to successful operations in the new region, while a poor one could result in adverse outcomes.
The supermarket selected for the marketing entry partnership is E.Leclerc. The chains have a strong brand reputation, which will help legitimize Irn Bru’s presence in the country. The supermarket chain also has an extensive reach throughout the country, allowing the drink to reach more people.
Supermarkets provide a calm, serene environment for the distribution of food, beverages, and tobacco, which could be a strong feature to associate with soft drinks. Supermarket chains also offer in-store promotions to business partners. This could be particularly helpful to Irn Brusince it requires promotions upon launch.
In addition to the crucial criteria discussed above, this hyperchain offers several other advantages, making it the ideal choice. First, Irn Bru specifically wants to expand into the French market, and supermarkets have strong geographical coverage in the regions where it wishes to expand. The supermarket is flocked by a mainly young, disposable-income demographic looking to enjoy a sweet, soft drink. This demographic includes families, young professionals, and travelers who enjoy sports. This group is known to have significant disposable incomes and is always willing to spend for fun (Djohari et al., 2019). The supermarkets’ diversity also gives Irn Bru a wide range of clients to choose from.
To penetrate the French market, Irn Bru will need to rely on strategic partnerships with various organizations, such as the aforementioned E.Leclerc supermarkets. A strategic alliance is an agreement between two or more companies to undertake a mutually beneficial project, with each organization retaining control and independence over the other (Bustinza, 2019).In this case, a strategic alliance would benefit Irn Bru by enabling it to leverage the expertise and resources of the selected partner. A strategic alliance would also help cushion IRN-Bru from unnecessary legal procedures required when expanding into a new country.
The decision to have IRN-Bru establish a strategic partnership with E.Leclerc supermarkets is driven by the opportunity to access new markets. Strategic alliances are also beneficial as they facilitate the sharing of resources and expertise when establishing a partnership. They also facilitate risk sharing and enable an organization to penetrate a new market cost-efficiently. The disadvantages of this decision will include the company losing control over distribution supply chain processes, conflicts arising over the distribution of resources, and the brand losing its identity. This strategic alliance shall be in the form of a joint venture, established for the specific objective of having E.Leclerc assist IRN-Bru in distributing its beverages in France.
Global Trends in Beverages
The beverage industry is constantly evolving, with new trends emerging each passing day. Some of the current global trends in the industry include health and wellness, sustainability, personalization and experience, emerging markets, and the rise of alternative beverages, among others. In this project, the two global trends selected were Health and wellness and sustainability, as discussed below.
Health and Wellness
Qualitative and quantitative data show that the French population is increasingly cautious about their health, as evidenced by their choice of low-sugar foods, calorie avoidance, and a preference for natural drinks over carbonated ones (Lucile Marty, 2021). Supermarkets and beverage manufacturers should market soft drinks as tools to quench people’s thirst and as healthy, refreshing alternatives with no chemical additives or sugars.
This strategic move ensures short-term prosperity for Irn Bru Drinks and positions it to remain viable in the long term, thus remaining relevant to the company. It is also relevant because it aligns with the organization’s expected corporate social responsibility.
Sustainability
The world today is calling on corporate organizations to remain socially responsible, and customers are avoiding doing business with organizations that ignore sustainability. In France, there has been a cultural shift toward ensuring responsible packaging and that organizations do not exceed the required carbon footprint (Lucile Marty, 2021). Irn Bru must be aware of this trend as it expands into France and should be committed to leveraging recycled packaging, minimizing waste, and sourcing raw materials from ethical partners. These measures would align with the broader social perspectives of the French people.
STP for France
The segmentation, targeting, and positioning communication strategy is essential in business as it helps companies avoid the trap of selling everything to everyone, which usually results in selling nothing to nobody. Segmentation is the process of dividing a large market into smaller, homogeneous segments. Targeting refers to selecting one or two segments to focus on. Positioning, on the other hand, refers to the manner in which a product is perceived in the market relative to the competing ones.’e4r;’465
In customer segmentation, Irn Bru will aim to divide customers into distinct consumer groups and select the best product tones for each group. The first target group shall be young students and professionals, both male and female, aged between 18 and 30. This target group in France generally targets product uniqueness experience and is also aware of environmental sustainability, as shown in Table 1.
The education levels for this segment shall be high, mainly among people who have at least enrolled in college, who constitute a substantial number in France (Pierre Cahuc, 2021). The lifestyle for this demographic will be active, with people interested in new activities and traveling and health-conscious consumers. The core values for the market segment will be supporting corporate social responsibility and sustainability.
Irn’s Market Segment
Table 1: Irn’s Market Segment (Passport, 2023)
Targeting this market segment will be done through social media platforms such as Facebook, TikTok, Instagram, and Twitter. The soft drink company must collaborate with public relations organizations, such as media companies, to help raise awareness among the segmented group. Previous research shows that promotions can help organizations penetrate new markets (Abderahman Rejeb, 2020). The drink needs to position itself as a soft drink with a unique flavor that cannot be compared to the company’s competitors. It should also introduce a zero-sugar variant manufactured using natural additives.
Countries Market Mix
The adaptation and standardization continuum is the process of calibrating an organization’s marketing mix to fit multiple markets. Standardization assumes that consumers in different regions share choices and preferences, and thus a similar marketing mix is maintained across different markets. Adaptation, on the other hand, assumes that markets are different and thus the marketing mix is adjusted to fit different regions. However, in practice, companies often find themselves on a continuum balancing adaptation and standardization.
Product
IRN-Bru has a broad portfolio of products, mainly beverages. The Original IRN-BRU is the organization’s flagship product and is well distributed in several countries. The brand also offers a free sugar drink, which is excellent for people looking to avoid high calories. The IRN-BRU Xtra has high caffeine levels for clients seeking a more energizing drink. There are also limited-edition items that offer special packaging and other appealing options within the brand.
Price
The beverage will be priced competitively compared to competitor soft drinks distributed in France. Competitive pricing is a business strategy in which businesses set prices based on competitors’ prices. The reason for competitive pricing is to help Irn Bru capture a larger share of consumers within the selected demographic. The prices of IRN-BRU’s various products, such as the original, diet, Xtra, and Limited editions, shall be lower than in other countries to ensure the brand achieves some market penetration. The reason for competitive pricing shall be to have IrnBru capture a larger market share of consumers based on the selected demographic
Place
The distribution will take place at E.Leclerc shops, as previously discussed, once a strategic alliance between the two companies has been established.
Promotion
Promotions will be done through advertising, personal selling, public relations, sales promotions, and direct marketing. The nature of the promotions will be the same across countries, though adaptations will be needed based on each region’s prevailing conditions.
Recommendations
It is recommended that Irn Bru develop localized marketing plans that resonate with young consumers in France. This can be achieved through culturally relevant storytelling and ensuring that the promotions align with clients’ mindsets, as research has revealed this to be an effective strategy (Ioana S. Stoica, 2021). The soft drink manufacturer must be willing to conduct continuous research to understand when customers’ preferences change and when competitors adopt new strategies. It is also essential for Irn Bru to establish strategic partnerships beyond retail. Other recommended alternatives are sustainable packaging, ensuring digital engagement, being culturally sensitive on social media platforms, and having precise customer feedback mechanisms.
Conclusion
Through creating a strategic partnership with E. Leclerc, Irn Bru will enjoy a seamless expansion into the French market, which offers diverse opportunities. However, to fully leverage this strategic partnership, the soft drink company needs to identify its target customer, who shall be educated people aged 20 to 30. The company will need to focus on health and sustainability global trends that are being taken seriously by the segmented group. Additionally, it is critical to leverage the country’s strong social media presence to market Irn’s soft drink as a healthy and environmentally friendly choice.
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