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ABSTRACT

Author: UOB No: Supervisor: Project Title: Pricing Strategy A case study of BRITVIC PLC, UK Keywords: United Kingdom, Beverages, BRITVIC PLC, Pricing, Strategy.

In todays world, companies are trying to control their prices and offer the people the quality products at best price. However, the price conscious people still exist in United Kingdom (UK). Different kinds of products exist in the market some are of daily use and some are not necessary for the use. They are few people who spend a lot of money on the expensive cars; wrist watches more expensive mobile phones. However, the consumable goods are bought by the people every day. BRITVIC PLC is a major beverages company of UK and they are very much concern with their pricing strategy to attract more and more customers. We have collected data from 30 respondents and they are satisfied with the pricing policy of BRITVIC PLC.

Pricing Strategy A case study of BRITVIC PLC, UK

BY COLLEGE ID: MCC----University Student Number:-----

Management Project submitted to the University of Wales in partial fulfilment of the requirements for the degree of Master of Business Administration

2012

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STATEMENT OF AUTHENTICITY, CONFIDENTIALITY AND WORD COUNT STATEMENT OF AUTHENTICITY


I have read the University Regulations relating to plagiarism and certify that this project is all my own work and do not contain any unacknowledged work from any other sources.

STATEMENT OF CONFIDENTIALITY
I understand and agree, that the dissertation, if successful, may be made available for interlibrary loan or photocopying (subject to the law of copyright), and that the title and summary may be made available to outside organizations.

Signed:_____________________________

WORD COUNT:

18000

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ACKNOWLEDGEMENT
Writing a project is certainly not an individual effort. Several individuals play different roles in affecting the completion of the project and I would like to take this opportunity to convey my profound gratitude to all of them. I certainly am grateful to all of those researchers, whose works have been cited in this project and whose insights have directly or indirectly inspired me to initiate this project.

Dr. _______being my supervisor played a fundamental role in the completion of this project. He helped me to develop a focused approach, simplified the complexity of research methodology and also offered her support as a friend. I am extremely grateful for the, all out, support provided by him, during the course of my project.

Finally, I owe my immense gratitude to --------------------------------------------------------------------------------------------------------------------------

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DEDICATION
This thesis is dedicated to my father, who taught me that the best kind of knowledge to have is that which is learned for its own sake. It is also dedicated to my mother, who taught me that even the largest task can be accomplished if it is done one step at a time.

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TABLE OF CONTENTS

Contents
Contents........................................................................................................... 6 List of Figures...................................................................................................9 List of Tables..................................................................................................10 List of Abbrevations........................................................................................11 CHAPTER ONE: INTRODUCTION.....................................................................12 Introduction.................................................................................................12 1.1 Brief Background...................................................................................14 1.2 About BRITVIC PLC................................................................................15 1.3 Aim of the Study ..................................................................................17 1.4 Purpose.................................................................................................17 1.5 Research Question................................................................................18 1.6 Benefits of the study.............................................................................18 CHAPTER TWO: LITERATURE REVIEW.............................................................20 2.0 Literature Review..................................................................................20 2.1 Profit Oriented Goals.............................................................................22 2.2 Sales Oriented Goals.............................................................................23 2.3 Status Quo Goals ..................................................................................23 2.4 Vital Statistics and Facts for BRITVIC PLC Advancement and Growth. . .25 .................................................................................................................... 25 2.5 Major Pricing Strategies .......................................................................38 2.6 The Basic Pricing Strategies Are ...........................................................39 2.6.1 Penetration Pricing .........................................................................39 2.6.2 Market Skimming ...........................................................................39 Page | 6

2.6.3 Value pricing ..................................................................................40 2.6.4 Loss Leader ....................................................................................40 2.6.5 Psychological Pricing ......................................................................41 2.6.6 Going Rate Price Leadership ..........................................................42 2.6.7 Contract Pricing or Tender Pricing ..................................................42 2.6.8 Price Discrimination .......................................................................43 2.6.9 Destroyer Pricing / Predated Pricing ...............................................44 2.6.9.1 Absorb/ Full Cost Pricing .............................................................44 2.6.9.2 Marginal Cost Pricing ..................................................................45 2.6.9.3 Target Price .................................................................................46 2.6.9.4 Contribution Pricing ....................................................................46 2.7 Relationship of Pricing Strategy and Consumers ..................................49 2.8 Pricing Strategy Matrix, Price Calculator and Switching Behavior.........51 2.9 Pricing Strategy of BRITVIC PLC............................................................54 3.0 Population.............................................................................................58 3.1 Sampling Units......................................................................................59 3.2 Sample Size...........................................................................................59 3.3 Data Collection Techniques...................................................................60 3.4 Questionnaire........................................................................................60 3.4.1 Gender............................................................................................61 3.4.2 Age of the Respondents..................................................................61 3.5 Data Analysis........................................................................................61 3.6 Reasons for Methodology Selection......................................................62 3.7 Why the Methods have been Selected?................................................62 3.8 Limitations ...........................................................................................62 CHAPTER FOUR: ANALYSIS.............................................................................64 Page | 7

4.1 Analysis of the Study ............................................................................64 4.2 Results of the Survey............................................................................66 CHAPTER FIVE: RESULTS AND FINDINGS........................................................76 5.1 Findings of the Study ...........................................................................78 CHAPTER SIX: CONCLUSION AND RECOMENDATIONS....................................82 6.1 Findings of Empirical Analysis...............................................................83 6.2 Recommendations................................................................................85 REFERENCES...............................................................................................86 APPENDIX....................................................................................................91

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List of Figures
Figure 2.1 Pricing strategy matrix Figure 2.2 Finding the right price calculator Figure 2.4.1 Soft drinks market in FMCG context Figure 2.4.2 On premise soft drinks market in context Figure 2.4.3 The soft drinks market Figure 2.4.4 Industry expert Jill Ardagh opinion Figure 2.4.5 Industry expert Stephen Reeson opinion Figure 2.4.6 Dont forget value matters more than price Figure 2.4.7 Industry expert Jake Shepherd opinion Figure 2.4.8 The clue to discounters success Figure 2.4.9 Take home sales of soft drinks Figure 2.4.1.0 Take home sales of soft drinks Figure 2.4.1.1 Take home sales of soft drinks Figure 2.4.1.2 Industry expert Patrick Miller opinion Figure 4.0 Gender Figure 4.0.1 Age group
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Figure 4.1: Does BB changes its products prices regularly Figure 4.2: The prices of BB always changed to higher side Figure 4.3: The prices of BB always changed to lower side Figure 4.4: BB will still be favorite if it increases the prices of its products Figure 4.5: BB has the quality product that is why it can increase the price Figure 4.6: BB has the low quality products that are why it can decrease the price Figure 4.7: BB changes the price strategy regularly Figure 4.8: BB has the most exciting offers in its advertisment Figure 4.9: I am pleased with BB completely Figure 4.10: I am not pleased with BB commmpletely

List of Tables
Table 4.0 Age group Table 2.1 Top marketing spend by advertiser 2009 Table 2.2 Total take home top supplier (2009) Table 2.3 Top on premise brands (2009) Table 2.4 Top on premise brands (2010) Table 2.5 Total top suppliers (2010)
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Table 3.1 Age of respondents

List of Abbrevations
Grosss Domestic Product (GDP) United Kingdom (UK) BRITVIC Beverages (BB) Coca-Cola Schweppes Beverages (CCSB) Fast Moving Consumer Goods (FMCG)

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CHAPTER ONE: INTRODUCTION


Introduction
In todays world, the companys are facing an immense pressure from the customers as well from the competitors. There are two aspects on the basis off which the customer makes the decision in order to buy the product or not. These factors are the price and the quality. The company that gives best quality at affordable rates raises the competition. They are two types of customer exist in the market quality and price oriented. Due to the high GDP in United Kingdom (UK), people have more purchasing power; therefore there are more quality conscious people in United Kingdom (UK). The companys are trying to control their prices and offer the people the quality products at best price. However, the price conscious people still exist in United Kingdom. Different kinds of products exist in the market some are of daily use and some are not necessary for the daily use. They are few people who spend a lot of money on the expensive cars; wrist watches more expensive mobile phones. However in 1998 Ovum argued that a lot of consumable goods are bought by the people every day. In todays world, the marketing condition change rapidly, every day new products are introduced with new marketing strategies. New products are coming into the market and ray with the new price. Some new companies are offering their products on lower prices. Therefore, the existing companies are facing a good competition from the new arrivals. Especially, in the beverages companies there are a good competition exists between Coca Cola, Pepsi and BRITVIC PLC.

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There is a price of everything, and there are many factors that decide the price of the product. Estimating the price of a predominant service or the product is very difficult. For example, the company like Toyota offers a special model of car with some advance and good features then after some weeks the Honda automobile company offers a car with exact features at fewer price. We cannot say that one company is charging more prices and the other is less as there are many hidden factors of a product that cannot be seen on first sight, a person who uses that product can only feel the difference. Every company has its own profit oriented and sales oriented goals, however, the companies know that the customer is well aware of the prices and the quality of the products so they will never try to charge extra profits from the customers. In many companies, the management pricing mainly focuses on the volume of sales. The ultimate goal of pricing the products can be to increase the sales volume and to gain the market share. A detailed overview is required to get the proper understanding regarding different pricing strategies that are being implemented by different organizations around the world. The need is not only to get the proper requirement from the consumers point of view but the organization itself will have to get the proper idea regarding different market and trends as well. The basic need for creating a witness to the normal consumers or customers regarding different strategies of the organization is to get the proper understanding of different point of views being created by the organization and the consumers regarding a particular commodity its usefulness and the price index having in the market. To consumers the importance of the requirement being satisfied is directly proportional to the price theyre paying for it. Are those consumers can find something in a lesser price they will be definitely going for that particular commodity. It becomes
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important for any organization to provide a particular product by which the consumer will be increasingly getting satisfied and would be able to pay as less as possible. A number of organizations around the world create too many opportunities to compete in a given market. Reports and survey were made to enhance different categories of the organization is to get the proper understanding regarding different aspects of our market. The most important factor for any organization is to get the maximum attention of the Customers and win his satisfaction level. It will automatically increase the sales of that particular organization. The commodities that are being offered by different organizations around the world are directly linked with the usage of the customers and the prices. It is crucial by which sale of any particular product or service can begin to achieve the promised sales. Moreover concept of creating a relationship between the organization and the customer cannot be overdone without the proper use of pricing strategies.

1.1 Brief Background


Since the past few decades it has become very important to understand the relationship of pricing strategies of different organizations and the consequences they may face in the given markets. The most important factor that the organization must understand before implementing any pricing strategy is to get a proper idea regarding the customers of that given market. That is why it has been seen that in the past years an organization of different sorts has been implementing many different strategies to get the best possible results. According to the study findings of Novels 1995 any organization would want to increase their profit margin and their respective market share in any even market. This cannot be unveiled without the proper usage of the consent of the customer and this
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cannot be achieved without providing a good quality service or product to the customer at an affordable price. From the point of view of the customers it becomes very important that the price they pay for any particular product or service must be giving the proper satisfaction to them. The customers play a very important role in any given market and to any given organization. It has been seen that an increased attention is provided by the organization that not only increases the importance of the customer satisfaction but the sales of the organization are also depending upon the customer satisfaction entirely .

1.2 About BRITVIC PLC


BRITVIC PLC is one of the top soft drink companies in UK. This company is also having agreements of bottling with worlds leading soft drink company Pepsi in United Kingdom (UK). BRITVIC PLC International is managing the franchises and the exports of the drinks in over 50 countries of the world. This organization has been in the baby importance of consumers of different backgrounds because of the production and the products being offered in the market. Since the past few decades not only BRITVIC PLC organizations increase the productivity but the sales can also be seen in a great race. By explaining the pricing strategies being implemented by this organization we can get a proper idea on the importance of utilizing differing pressing strategies to overcome the market scenarios of different types (www.britvic.co.uk). Even though this organization does not have too many competitors but still the fight to strive and increase the possibility of profit margins and increased sales is definitely there. Apart from a lover nation with Pepsi and others providers of soft drinks this organization
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has been able to make its mark in the given markets respectively in the United Kingdom (UK). This organization has become one of the leading soft drink providers around the country and is striving to increase their market share every day. Apart from keeping good pricing strategies that increase the sales many new advertisement campaigns can also be seen by this organization that provides update outlook to the customers. The strategies being implemented by this organization are not only important for understanding but others may take it as an example to follow as well. To further explain the importance of the study being made on this organization is to get the proper idea regarding the relationship of pricing strategies of different commodities. In 1995 Nowlis concluded that the basic idea or the need is to get the sales increased in a number of ways that will also increase the market share of that particular organization, but if it is only attainable with a proper pricing strategy. BRITVIC PLC is the number two producer of soft drinks in UK. It is the second largest beverages company in terms of retail sales value and volume. It was founded in mid nineteenth century and since then they never looked back. They are on the move to catch up new horizons. The company is a medium in size as there are about 3500 employees working over there (www.britvic.co.uk). Setting the price and adopting a pricing strategy is an art that can be learnt with the passage of extensive experience and research. In our research study we will identify the pricing strategy of BRITVIC PLC and will counter whether it is mean for their success in the business. Increasing product range and product line is also an art to surpass your key rivals, as we can see that BRITVIC PLC is offering such a diverse product range to match with the
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consumer needs but they should be careful while setting the price. At the start of the business they have only a few products but now they have quite diverse range of products. Segmentation is also done to promote a particular product in a selected region. BRITVIC PLC should be very careful while selecting a region and make products according to the needs and demands of that region and area. Moreover presentation and style is also very much important for the success of a product, therefore BRITVIC PLC provides products in multi styles and colors. The main success of BRITVIC PLC underlies the umbrella of customer trust and satisfaction. They give response to every complaint and always listen to their customers. They believed and relay very much on this statement that in a whole year someone is having a soft drink in a part of the world, no matter he in school, gym, and restaurant or at any other place. BRITVIC PLC believed that they are their potential customers and future target market. 3 The years 2009 and 2010 were tough for majority of organizations but beverages sector performed well especially BRITVIC PLC as its products are according to the taste and mood of the client.

1.3 Aim of the Study


The research main aim is to make a better understanding of the pricing strategy adopted by BRITVIC PLC and to know how the prize of a product is affected by various factors.

1.4 Purpose
Pricing strategy is a tactical game that is adopted by an organization to increase its sales volume and revenue. A good pricing strategy is accountable to gain large market share.
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In our study we are focus on the pricing strategy adopted by BRITVIC PLC and how it has boosted the revenue and sales of the company.

1.5 Research Question


The study will be answering the following question:
1. What should be the pricing strategy adopted by the BRITVIC PLC Company for

the enhancement of business model? 2. The price of a product can be affected by which factors? 3. How the buying power and the choice of the customer can affect the product price?

1.6 Benefits of the study


The present study will give and insight to the BRITVIC PLC about the view point of the worthy customers regarding the pricing strategy of the company. It will let the organization know that whether the customers are satisfied with price and quality of the different products offered by the organization. The study findings would be a good sort of information for the company to mould or retain the current pricing strategy. If there exists some discrepancies or in other words the customers are satisfied with it. With the help of this study we can easily determine the importance of treating different strategies with aspect to the prices of different commodities that are given in the market by organization. This will also further improve the relationship between the organization and the customers by which the probable market trends can be easily under standard and maintained for the futures.
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1.7 Reason to Conduct the Research


BRITVIC PLC is a major beverages company operating in UK. It has started its business in 1940s and since then they never looked back. They have emerged as a leading beverages company in recent times. We are mainly focus on the pricing strategy of the BRITVIC PLC that has made it one of the top beverages companies of the UK as well in other parts of the world. BRITVIC PLC is number two soft drink producer in UK and we are very much concerned how it has achieved in a competitive market. The renowned brands for BRITVIC PLC are BRITVIC PLC itself, Tango, J2O, R. White's Lemonade, Gatorade and Mountain Dew Energy. They are offering different products to attract more and more customers and they have adopted different strategies for different products. BRITVIC PLC products are available for all age group for a baby, young guy, man and old people. Thus it is important to understand how they have devised strategies to adjust the price and quality of the products to increase their sale and profit.

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CHAPTER TWO: LITERATURE REVIEW


2.0 Literature Review
This part of the study will be consisting of the data that will support the complete study. The literature review will be providing the assistance for the methodology section. As the decision of the customer to buy a product is always influenced by the price. Therefore the company has to determine the quality and the price of their services and products very carefully. A customer can buy another product just because of the smaller difference in the price. There are many pricing objectives. There are many possibilities of implementing different pricing strategies by different organizations. Some organizations would rather go for the profit oriented approach and they will not care for the customers requirements mood to keep higher prices for the products or services. It is important to understand the trends being implemented by different organizations in order to retain the market share and profit. Are detailed understandings become the necessity for the point of view of the organization and the understanding of customers characteristics will give the best outcome for both the organization and the customers. The futility of creating high priced pricing strategies the organizations will not only reduce the attention of the customer but many negative aspects will also be seen by the organization. This is just one example by which the organization failed to provide to the market settings they had in mind on the first place. There are too many examples that can be seen in the past and the present by different world leading organizations to hold them for size on profits and market shares. The aspect of increased understanding between the market shares and providing customer
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the quality products is almost like a single impact on the commodities being provided by the organization . In this regard a detailed study can be helpful to develop a proper understanding between the relationship of the customer satisfaction and the growth of the organizations profit margins and other different aspects as well. Other most important factors that would further enhance the utility of the concept of customer satisfaction to the organizations that implement different pricing strategies on the commodities in the given markets . The understanding of different aspects of the organization is crucial to increase profit margins and market shares. Still the importance of the consumers must be developed in the organizational point of view so that a combined revolution can be developed for the future. It will not only enhance the utility of any particular organization but they will also provide for the convenience for the customers. In this way it becomes very important to create a good understanding on the pricing strategies of different organizational point of views and the building relationship of the customer satisfaction that will not only increase the sales of that particular organization . By identifying the relationship of organizational point of view and the respect of the customer, company can gain superior market share with respect to good pricing strategies. There are many features that are important for the point of view of the organization. It is clearly understandable that the importance of the customer satisfaction plays the most important role in any given organization. That is not only because they pay the money for any particular product or service that is being rendered by any organization in the game and market . Other opportunities can also be obtained by the organization with the help of
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customer satisfaction. Mainly to the organizations most important game is to get ahead in the competition and that can only be achieved by getting the maximum sales in the given market. Following are the goals of the company. 1 Profit oriented 2. to maximize the profits to achieve a target return

Sales oriented to get the market share to increase the sales volume

3.

Status quo-oriented o to get into competition o to stabilize the price

2.1 Profit Oriented Goals


The goal off many companies is to maximize the profit and minimize the loss. Every company keeps a specific amount of profit on every product. For example, a chain of men fashion clothing store may keep a twenty percent of the profit on to every product sold. They are many banks that are taking the mark up on offering different kinds of products like automobile and home. Therefore achieving a target return on investment is calculated in the relation to a companys net worth that is the assets and the liabilities.
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2.2 Sales Oriented Goals


Almost all the companys wants to generate more sales. The companys are never ready to make any kind of compromise on the sales. There are any many companies that are offering the products at lower prices just because they want to increase the sales, this may be also the reason that there is a stock of the products that the company wants to sort as soon as possible. Many a time it happens that the company increases the products price when the people start buying the product. Monsanto Co has already adopted this strategy in America for the farming products. Moreover this is basically an agricultural company and there are many farmers that have bought the products of that company. The conditions of the market are not in a stable condition all the time. Many times, the companies are facing the loss due to bad market conditions just because of not having a good marketing share. There are many industries which are not growing at a rapid pace, the reason for that is the excess production capacity.

2.3 Status Quo Goals


In these industries usually the leaders or the main companies set the price of the product and the small companies start following the leader. When there is no leader in the market, the companies start deliberately price their products to meet the prevailing market price. This pricing strategy can take the management out of the difficulty where company is having difficulties in pricing a product. There are many factors that affect the price of the product. The companies have to make the estimate of the product demand. Sometimes the companies make the product according to the market demand. The customer has often an expectation for a product.
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When the companies are making the same product the price and the quality are the two main factors on which the customer makes his decision to buy a product. Mostly, a company wins the competition which is offering high quality products at lower prices. However, there might be a case when the customer is buying a higher price product just for the quality. The availability of the substitutes can also generate the competition for the companies. DHL has dominated the couriers services for many years but with the arrival of different companies like Schneider National truck shipping and Union Pacific rail freight, the DHL is having serious competition and the customer is also divided between these companies.

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2.4 Vital Statistics and Facts for BRITVIC PLC Advancement and Growth

From BRITVIC PL C soft drinks report 2009 Figure 2.4.1 Soft drinks market in FMCG context It is very buoy for BRITVIC PLC that amongst the Fast Moving Consumer Goods (FMCG) soft drinks had the most sales in UK. Even they have beaten the wine, chocolates, snacks, butter and beer category. These statistics showed that soft drinks are very much popular in UK. BRITVIC PLC just needs to capitalize the opportunities in the market to sustain and grow in highly competitive environment.

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From BRITVIC PLC soft drinks report 2009 Figure 2.4.2 On premise soft drinks market in context But if we look at the above statistics in terms of on premise soft drink market only beer and spirits are above soft drinks. It is an ideal situation for BRITVIC PLC as people of UK like to have soft drinks in their daily use. BRITVIC PLC just needs to consolidate the available options and try to convert them in best possible products for the customers.

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From BRITVIC PLC soft drinks report 2009 Figure 2.4.3 The soft drinks market Customers like to take the soft drinks along with them at home after doing shopping. But few are also keen to drink them right at the spot. BRITVIC PLC must not forget the requirements and needs of both. They should made durable and long lasting quality products for take home customers and rich and superior products for the on the spot customers. Never the less take home customers are more crucial for the profitability and success of the company but BRITVIC PLC cannot leave behind the on the premise customers. As failing to fulfill their demands and needs some other company might get

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the advantage by producing products just only for them.

From BRITVIC PLC soft drinks report 2009 Figure 2.4.4 Industry expert Jill Ardagh opinion
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Company do business for the sake of profit and customers purchase the products and return back the cost to the company. Now days customer wants pure and natural products. BRITVIC PLC should be aware of the fact and must produce natural and health products for its customer. On the other hand it is also important for BRITVIC PLC to produce products that meets consumer needs.

From BRITVIC PLC soft drinks report 2009 Figure 2.4.5 Industry expert Stephen Reeson opinion It is the desire of every company to maximize its profit and reduce its operating cost. It can only be done while utilizing less resources. BRITVIC PLC should adopt such process and plans that requires minimum of resources like energy, fuel, water and gas. It is good
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both for the company and environment. In this way productivity can be enhanced with maintaining a safe and clean environment. On the other hand BRITVIC PLC is morally obliged to preserve the nature and environment which is a very good sign. Moreover customers also want that the companies should not exploit the nature while producing products for their daily use.

From BRITVIC PLC soft drinks report 2009 Figure 2.4.6 dont forget value matters more than price Some customers are price conscious while some are value alert. Both have their own preferences. But it is crucial for any company not to concentrate entirely on one type of
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customers. BRITVIC PLC should keeps it in mind that value and quality matters most to the customers over here in UK, as it is the matter for their health and fitness. Soft drinks are low price products so majority of customers looks for brand name and superior quality goods. It is a very good strategy to provide discounts on bulk or bundle products it will not only increases the sale volume but will constructively affects the profit margin of the company. People tend to buy the discount products in UK and often visit discount stores. BRITVIC PLC should also adopt the discount policy along with the regular price strategy and must not forget it. This will help in attract more and more customers. Moreover brand promotion and advertisement is also vital for the success of a company. BRITVIC PLC must not forget that many people buy a product after its appealing advertisement and promotion. Customers also like to buy the products that are prominent at the display for this purpose BRITVIC PLC must appoint personnels to display their

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brands right in front so the customers can see them easily.

From BRITVIC PLC soft drinks report 2009 Figure 2.4.7 Industry expert Jake Shepherd opinion
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Many customers believed that soft drink is an item of daily usage and an integral part of household shopping. But brands name is important in the eyes of customers and they purchased the top one. In this regard BRITVIC PLC should make continuous efforts to make its brand number one in the market. Although it is quite difficult still achievable as right now BRITVIC PLC is the second best in the beverages business.

From BRITVIC PLC soft drinks report 2009 Figure 2.4.8 The clue to discounters success Sometimes low prices appeals too much to customers. According to above statistics 80% change in shopping and buying trends can be created while lowering down the price. It is a very attractive and popular strategy used by many of the companies in past and today.
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Moreover availability and convenient to get products also attracts to the customers. BRITVIC PLC should also keep in mind and give preference to these two strategic methods to hit the psyche of the target customers.

From BRITVIC PLC soft drinks report 2010 Figure 2.4.9 Take home sales of soft drinks The total sale for the year 2010 was 6.2 billion pounds for soft drink industry. It was 2% more than two percent (2%) as compared to the year 2009. It is good to see the soft drink industry flourishing in time of economic decline all over the world. BRITVIC PLC can

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also get advantage as opportunity of growth is there in the market, they only need to cash and capitalize them.

From BRITVIC PLC soft drinks report 2010 Figure 2.4.1.0 Take home sales of soft drinks Today it is a common trend to do shopping online. Customer wants each and every thing at their door step. They do online shopping to save time and efforts. In year 2010 British consumer bought 20% households items by online shopping. BRITVIC PLC must also provide opportunity to the consumers to buy online through its website to boost up its sales with the help of technology and digital world.

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From BRITVIC PLC soft drinks report 2010 Figure 2.4.1.1 Take home sales of soft drinks Promotion is also a widely used tool to increase sales volume. In 2010 in UK 49% sales of soft drinks were done with the help of promotional activities. BRITVIC PLC must also adopt affective promotional strategy to generate more and more sales.

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From BRITVIC PLC soft drinks report 2009 Figure 2.4.1.2 Industry expert Patrick Miller opinion Customers want value from the products. They paid to get back in return the satisfaction. So it is important to adjust the strategies of a firm according to the needs of the day. BRITVIC PLC must also be aware of the fact that its products must provide the value and satisfaction to the consumers.

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2.5 Major Pricing Strategies


There are many types of pricing strategies that are being used by different organizations around the world to not only to increase the market share and the profit margin but the basic target is to get maximum sales. In order to achieve maximum sales regarding any particular product or service that any organization in particular provides to the customer with respect to the local market or the international market they are working in. Moreover to further explain the importance of pricing strategies with terms of the interest sales of any organization it can be said that organizations tend to provide different attractive ways for the customers in order to sell their products or services. To the users of any particular product or service price is very important factor for the customer that is because if he can receive the same product or service in a lesser amount of money he would be definitely going for the lower priced commodity? According to Mayhew & Winer 1992 whom further emphasize the importance of understanding the pricing strategies for the organization. That is why a detailed study will be made regarding different pricing strategies. It becomes important to explain the pricing strategies that are being used by many different organizations around the world in order to increase the sales of their particular commodities and further enhance the production of their assets. To the huge applications of pricing strategies regarding different products and services of any given organization it becomes very important to understand the relationship of the customer and the given market. The strength of the customer is always on the graders said because the impact off the customer retention not only increases the promised sales of the organization but many other advantages can also be achieved in this respect . The usefulness of providing
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different aspects to the organizational growth the impact of pricing strategies tend to increase the customer satisfaction which in fact increases the sale of that organization.

2.6 The Basic Pricing Strategies Are


2.6.1 Penetration Pricing This type of pricing strategy is mainly used for to break in the market by keeping the price on the low side and have higher volumes. Mainly this can be used for products like food stocks and household items. That can be easily readable for the products that have longer life cycles and are easily compatible in the market for the longer run. Mostly whenever product is being launched in the market that has lower prices but has to be sold in higher volumes this type of strategy is useful. Examples can be seen in a lot of the markets to that provide such low prices those inquiries about market share numbers a smaller time. In 1991 Lynn concluded that this type of pricing strategy is useful in many different ways for different organizations. It can also reduced the competition in the market and provide good market share for the particular organization that implements this type of strategy. To further explained his strategy with adding lower prices but increased sales of that commodity this pricing strategy becomes very useful for the organization. 2.6.2 Market Skimming In this type of the pricing strategy the prices are kept on the higher side by the volumes off sales but tend to be on a much smaller scale and that is because the profit is basically gained in the market. With indestructible for the products were shot dead life cycles and book in this competition at any rate in the near future that that is why the organizations gain is to get as much profit as possible on the shorter period of time. Examples can be laptops or DVD that will be facing competition in the market very soon. This type of
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pricing strategy is normally used by the organization to get as much profit as possible on as limited time as possible. With a game becomes very useful for the organization because many are predicting a fire sale that would mean that the product would be a highly demanded by the customers for example the sales of the new laptop or a new mobile phone can be easily Traced with the help of this type of pressing strategy. 2.6.3 Value pricing In this type of pricing strategy mainly the perception of the customer players in part descended upon the value perceived by the customers is a price of that particular commodity. It can be easily said that the perception of any product or service union intends to create the price of the commodity in particular to. Examples can be a status product that usually tends to differentiate the social standards capped by different customers and consumers. It can also be used for the exclusive products manufactured by different organizations regarding the target audiences with a choir to gain this in terms of profit margin increase. This type of marketings strategy can be utilized as a pricing strategy as well because the perception of the consumers will be arranging the prices of these types of commodities and the value they would provide to the customers will be also on a higher level. It becomes very important for the organizations to follow this type of oppression strategy with the ten to increase in different ceremonial positions off different status symbols of the customers. 2.6.4 Loss Leader This type of prices strategy is also a very renowned one because of its major advantages to the organization that uses them. This type of pricing strategy is basically used by different stores that tend to decrease the price on the lower said so that others products
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could be sold as well. For example in the time of the Christmas a particular product is reduced to its cost so that the customers will be attracted to words it and will be buying other products as well. Examples can be seen any way for example a bottle of whiskey could be sold on how much lower rate by this the customers will be attracted and when they entered the store they will be able to buy something else. In 1989 Lichtenstein & Bearden argued that in this way the loss on the particular product can be easily recovered with the sales of other products with respect to the customer being coming in the shop for buying the whiskey but then again pages from other items as well. 2.6.5 Psychological Pricing This type of to pricing strategy is to basically play with the consumer perceptions and that can be easily achieved when the price of the commodity is a deal is to set the smaller amount of money that eight creates no difference and the customer still feels that he is being less fares. A classic example can be dollars 9.99 in fact of $10.00 the price is reduced to 9.99 nor the 1 is not important but the perception that is made in the mind of the customers with ideal paying only $9.00 in fact he is paying $10.00 and does not even realize it. To this type of privacy strategy is being used by a number of organizations around the world and examples can be seen anywhere in the given markets. Even cart local markets begin see a number of products that are priced raised in this type of pricing strategy. Basis normally plays upon the perception of the customer and the customers usually think that theyre paying less but in fact they pay almost the same amount otherwise. Therefore In 1989 Lichtenstein & Bearden suggested that this type of pricing strategy is the most useful pricing strategy in point of the organization as a creative

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satisfaction in the mind of the customers as well as increase to take profit margin can also be successfully done by the particular organization. .0 2.6.6 Going Rate Price Leadership In this case the pricing strategy is to basically keep a price lead by any particular organization that is having a strong market share in any given market. To this is basically done to reduce the concept of competition in the market by the organization and when the newcomers the market the prices could be reduced so that they can easily get out of the market and the competition respectively. To the step off organizations were due to live this pricing strategy can easily avoid any competition provided they have good market share on the first place and indeed in the market by providing good pricing strategy to their commodities in particular. In 2005 Lichtenstein conclude that base pricing strategy has almost been seen in the market for the past few decades that is because the usefulness of this type of prices strategy almost make lets the concept of no competition in the market for a very long period of time examples can be banks so poor markets electrical cords and similar prices in all the outlets that provide these type of appliances to the customers. This type of pricing strategy has become one of the most important and useful tactic for the organization to achieve the best from any given market. 2.6.7 Contract Pricing or Tender Pricing To this type of pricing strategy to is basically induced by different firms that would create a contract on a soap level for other companies that would want to purchase then choose with the wince to get the best value. More state is done in a secret away that way the pricing strategies could not be leaked out in the market, the competition will be getting very difficult to handle. This type of pricing strategy has become a very common in
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todays time that is because of the competitiveness in the markets and organizations would require and strive to get the maximum market share any way possible. This is why it is important to understand this type of pricing strategy and the importance it has on the given markets and the perception of the consumers and customers combine. This also reduces me conceptions to avoid such type of difficulties in the competition off any organizations point of view and to keep the markets said to be one of the most effective ways by which any organization will be able to keep their market standings to the most useful possibilities and capabilities. Thus suggested this was also conducted other sweet red pepper of transactions being made between organizations that would create a good understanding between the competitors and the market shares could be easily achieved. 2.6.8 Price Discrimination This type of testing strategy is a very different type of project strategy because of its majors as it will be explained that the cost of any particular product or service being rendered is differentiate and upon the same utility being offered to the customers. For example prices of Train travel and differ from the same destination but on different times of the day. Still this pricing strategy has some requirements to be maintained so that price discrimination could be activated by the organizations usefulness. It is required for the market to be in diameter bill for this type of commodities and it also utilizes the customers need to have a price of the commodity itself. Therefore these types of pricing strategy also require that the price elasticity of demand in each market should be different as well . This type of person strategy has been implemented in the last a few decades to the most because organizations want to increase their profit margins as much as possible to part from the market scenarios that can be seen in the local markets.
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2.6.9 Destroyer Pricing / Predated Pricing This type of pricing strategy is basically given as alien invaders of competition because the price cutting over different products and services often creates the smaller and weaker organizations to walk out from the business. This further stops the new entrants to enter into the market and that is why it is called the destroyer pricing strategy because it certainly removes all the compacted MS of any organization because of forcefully decreasing the price to such lower the level that the customers will have to come for that particular price for the different products and services. This is also called as anticompetitive and may become a legal if it is proved that is why this type of price and strategy also becomes very important to understand and real live about because it is being used by many organizations that tend to create and negative aspect off many pricing strategies with terms to create and negativity between other organizations . Competition is reduced to a minimum level which can be and negative aspect for the customer as well so the importance and understanding of these type of person strategies becomes very important to realize upon. 2.6.9.1 Absorb/ Full Cost Pricing To this type of person strategy is basically to get the full cost pricing that would be attempting to set price to cover both fixed and the variable costs. Organizations use this type of prices strategy because they want to it than any negative aspect off lower sales could be avoided and the cost to that is being implemented to produce a particular product or service can be easily recovered without any hesitation and difficulty. At the option cost pricing and also did you say the chances of any loss to the organization because the cost being paid by the organization to achieve a particular product or service can be easily recovered by this type of test and strategy. In 2002 Lee & Han argued that
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even the customers are happy to take this type of pricing because the products and services they will be purchasing from the organization will be according to the requirement of the customers and they would be easily be the required amount because of the dissatisfaction they can achieve or gained from that particular product or service. This also becomes very important to understand that the usefulness of different aspects of the organizational behavior is activated and combine together to get a perfect with solution prices and the costs to any even organization. 2.6.9.2 Marginal Cost Pricing This type of pricing strategy is also utilized by a number of organizations around the world that is because of its usefulness into many different aspects for example the cost of producing one extra one few item of production can easily be detected and reduced so that it can be achieved by the organization. The marginal cost pricing allows flexibility to the organization and the producers of different types of actor and regarding the providence to the market. In 2002 Lee & Han concluded that it is easily relayed it to the transport with fixed costs may be related to the high but allow the variable pressing structure for example, flight from London to new York providing the cost of the extra speed or the passengers is covered with the deal to attract customers to fall the aircraft so that economies of scale can also be put to part and other needs situation could be achieved for the organizations manufacturers and the customers all combined together. These types of person strategy are normally helpful for all over the market scenario and create a good understanding between the organization and the customers first hand.

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2.6.9.3 Target Price This type of pricing strategy to is utilized by different organizations to get the proper to target specified profit level that can be estimated upon the potential revenue at different prices and thats the big human point could also be achieved by the organizations usefulness. It can also be determined to mark up the profit and the cost analysis for the organization in which the target price will be able to get the best outcome for the organization and customer combined. This type of test and strategy is normally engaging and amber off target of oriented organizational means so that the customers will be getting satisfied and they would be coming for more and more and the target of the organization will be meant as well because of the com to the lady of producing messed up off, duties on the first place can be easily defeated with the help of these type of pricing strategies. 2.6.9.4 Contribution Pricing This type of taxing strategy is the key used to ensure the coverage of. Though costs and apparent addition to the fixed costs can also be made this is almost like the marginal cost but the breakeven analysis might be useful in such circumstances of the organization would want to increase their profit margins but the customers want to provide have less as possible for the purchasing power of any particular commodity they purchase. These type of pricing strategy not only reduces the chances of lost to the organization but the company to eleven major nation could be as a is to buy the organization and the usefulness of the consumers can also be utilized in this type of pricing strategy as it can create a winning situation for both the entertain and the given markets. Therefore best outcome of this type of facsimile data GL that the organization can easily and in the breakeven analysis that will be increasing the chances of that organization to get the best
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results from any given market . Obviously the customer also will be heavy increased advantages with respect to this type of person strategy. In order to get the proper idea regarding different pricing strategy that are being explained in the above details and to get the idea that the different organizations are being used in order off increasing the profit margins and the market share with respect to the customer. To further understand the relationship of suppressing strategies and the concept of the consumer. The organizations are trying to implement as many new advances as possible so that the combination of improvement in the business ventures of the organization and the requirement of the consonance could be fulfilled. The overall idea of a alleging the usefulness of different pricing strategies not only gives the productivity to the organization in the sense of market share, increased sales and profit margins. The usefulness of such pricing strategies is that it can be easily conceived that they have a great importance on the usefulness of different aspects regarding the production system of the organizations and the behavior of the consumer in too many different aspects which can be for the positive of the organization or the negative factors. The importance of understand and provide the best outcome for the organization can also be received with the help of creating a good communication level between the customers and the organization with respect to the products and services theyre being purchased in the markets. The importance of these strategies has becomes importance for the organization and the consumers combine together with different aspects of understanding developed between the organization and the customers . In this way not only the organization can be achieved in the good market share tender offers to other smaller companies and consumers will be getting a good price rate in the market as well.
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The usefulness of all the explained pricing strategies have their own usefulness and applications in particular, that is why they cannot be highlighted on being the best one because they may be changing according to the product and service being provided by the organization to the customers. To further explain the usefulness of this type of pricing strategies it becomes important to understand the consumer trends in the given markets so that organizations could implement different pricing strategies accordingly. In 2004 Kim concluded that there is no distinction of any type that would suggest the best outcome for any pricing strategy that is because of a changing consumer behaviors and requirements of the customers respectively. It is the duty of the organizations to provide the best products and services and the manageable prices for the consumers. The usefulness can only be achieved when a mutual understanding can be created among the organization and the customers of different types in any given market. This cannot be restricted to any single organization or for that matter as single market cannot be explained at the whole global view point. To the mutual consent of the organization and the customers combined together produces the best outcome for everyone that wants on profit or wants to take as little price as possible. The most important for any organization to get profit or gain market share but if the customers are not satisfied the overall operational planning for any organization can face a downfall any time. That is why it becomes more important to understand the consumer behavior of different types before any organization can implement new pricing strategies in any given market. The combination of different pricing strategies further ensures the productivity of top with vision into many different dimensions as the customers are of different types. Pricing strategies play the most important part for any products market shares that is why
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it becomes very important to understand the requirement of the customer on the first place. The organizations main goal is to open profit as much as possible but they should be keeping in mind that the satisfaction of the customer is the most important reason for the growth of their product sales and their respective market share. Moreover according in 2004 Kim further enhances the capability of any organization that decision lies between the pricing strategies be implemented in a given market. Moreover the importance lies between the satisfaction of the customer and the pricing strategy of the organization.

2.7 Relationship of Pricing Strategy and Consumers


In the pricing strategies record into the requirement of the customer then there is no limitation for the growth of that particular product market share and sales accordingly. The basic requirement of the customer is to get the satisfaction from for any particular commodity for which they paid for. This is why it becomes important to understand the consumer behaviors with respect to the terms and conditions of the organizational means in order to increase the market share and the profit margin. Moreover if the middle consent can be achieved by the organization with a means of providing good prices and good products and services than the customers will be intensively purchasing that particular product or service which will only enhance the growth of the particular organization who provides that particular commodity . The impact of understanding being developed between the customer and the organization can be on the positive side and provide extra benefits to the organization. Again this is not restricted to any one particular organization but any organization can achieve this
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type of strategy. The relationship between the pricing strategy and the sales of the particular product of a new organization is directly proportional to the pricing been implemented and the consumers purchasing the particular product or service . To further enhance the understanding of the importance of the relationship between the organization and the customer a single determinant is in question and that is the pricing strategy of that organization. If the prices are capped on the lower side then automatically a number of customers can be attracted and the sales of the particular product or service could be enhanced into great numbers which can be useful for the any organization. The pricing strategy that is being implemented by any organization has the direct effect on the consumers of the particular product or service the organization is providing to them. This can also be achieved by other means as well but the main as sense of achieving this type of strategy is to provide satisfaction to the customers to end and finalizing this requirement according to their needs. This type of situation can only be unveiled by a mutual consent of the consumers and the organization combined. Without it this cannot be achieved and difficulties can be seen for the organization in order to gain the market share they required and the profitability they want to gain. Although it becomes very difficult but it has to be maintained so that the organization can have a good future in the given market and in the eyes of the customers they are targeting on the first place . The usefulness of providing different pricing strategies will not only ensure that the consumer will be getting a good quality product at the end of the day. In an exchange that customers will be happy to provide a good market share to that particular product or service and eventually to that organization as well. These are the detailed reasons by which we can clearly understand
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the usefulness and importance of different pricing strategies being implemented by organizations around the world.

2.8 Pricing Strategy Matrix, Price Calculator and Switching Behavior

Figure 2.1 Pricing strategy matrix This is the world most used pricing strategy matrix. Every company devised its strategy by looking around this matrix. Sometimes they used different pricing strategies for different products by keeping in view the needs and demands of the customers.

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Figure 2.2 Finding the right price calculator This cycle is also used by organizations to setup their product price. It is a step by step cycle and they keep in mind all the factors while setting price for a particular product.

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From BRITVIC PLC soft drinks report 2010 Figure 2.3 How consumer switch between soft drinks sub-categories Consumers like to switch between the different beverages. One person like to have Coke on Monday, May be on Tuesday he like to have a Pepsi. The below figure will give an example of consumer switching behavior.

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2.9 Pricing Strategy of BRITVIC PLC


The BRITVIC PLC used the combination of skimming and penetration price. We can say that BRITVIC PLC falls among these two strategies. So this is the idea behind their increased profit margins over the years. For some particulars products they used the skimming and charged high costs and on the other hand they charged low and use penetrating pricing policy. The research indicates that product price is a major factor to boost up revenue thus if you increase 1% price ultimately you get 7-8% increase in the profit. Profit can also be generated by doing more sales. BRITVIC PLC is aware of these two scenarios and sometimes increased price to get maximum profit and sometimes provides bundle discounts to generate more maximum sales. Below is the year wise performance of BRITVIC PLC Top Marketing Spend by Advertisers (2009) millions 1 Coca-Cola Great Britain 33.90 2 BRITVIC PLC Soft Drinks Ltd/PepsiCo Intl Ltd 19.6 3 GlaxoSmithKlineNutr Healthcare 13.68 4 Red Bull Company 7.58 5 Schweppes Beverages 4.74 6 Ocean Spray Intl Inc 2.93 7 Gerber Foods Intl 2.21 8 Danone Waters (UK & Ireland) Ltd 1.56 9 AG Barr Plc 1.55 10 Nestl 1.52 Table 2.1 Top marketing spend by advertiser 2009 Source: Nielsen Scan track, MAT 27 Dec 2008 From BRITVIC PLC soft drinks report 2009
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% Change 6 -30 -4 29 3 31 549 -72 -40 50

1 CCE 2 BRITVIC PLC 3 GlaxoSmithKline 4 Danone 5 Tropicana UK 6 Red Bull 7 A G Barr 8 Innocent 9 Gerber Foods 10 Highland Spring

Total Take-Home Top Suppliers (2009) % Value millions change 1,629 3 688 8 475 1 333 -7 326 14 182 9 130 9 110 -23 72 -3 57 -1 Table 2.2 Total take home top supplier (2009) Source: Nielsen Scantrack, MAT 27 Dec 2008 From BRITVIC PLC soft drinks report 2009

Top On-Premise Brands (2009) Value 1 Coca-Cola 451 2 Pepsi-Cola 431 3 R Whites Lemonade 193 4 BRITVIC PLCJ2O 178 5 Schweppes Lemonade 156 6 Red Bull 97 7 Schweppes Mixers 81 8 BRITVIC PLC Mixers 70 9 BRITVIC PLC Squash 66 10 BRITVIC PLC Juices 50 Table 2.3 Top on premise brands (2009)

% millions change -6 0 2 -3 -12 -8 -3 -4 1 1

Source: Nielsen On Premise Audit, Total Brewers, MAT Nov 2008 From BRITVIC PLC soft drinks report 2009

To

Top On-Premise Brands (2010)n-Premise Brands Top On-Premise Brands


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Top On-Premise Brands

Value 1 Pepsi Cola 2 Coca-Cola 3 R Whites Lemonade 4 BRITVIC PLCJ2O 5 Schweppes Lemonade 6 Red Bull energy 7 BRITVIC PLC mixers 8 Schweppes mixers 9 BRITVIC PLC squash/cordials 10 BRITVIC PLC pure juice mixers 475 446 209 174 158 92 75 68 68 54

% millions change 10 -1 8 -2 1 -5 7 -4 6 6

Table 2.4 Top on premise brands (2010) Source: BRITVIC PLC Soft Drinks Report 2010
To

Total Top Suppliers (2010)n-Premise Brands Top On-Premise Brands


Top On-Premise Brands

1 CCE 2 BRITVIC PLC 3 GlaxoSmithKline 4 Danone 5 Tropicana UK 6 Red Bull 7 Barrs 8 Innocent 9 Gerber Foods 10 Nestle Waters

Value 1,710 728 468 325 301 186 160 107 63 63 Table 2.5 Total top suppliers (2010)

% millions change 4 6 -3 -3 -7 0 9 -4 -13 12

Source: BRITVIC PLC Soft Drinks Report 2010 We can say from the above tables that BRITVIC PLC is striding for excellences and it is on the go to generate more and more profits. BRITVIC PLC brand has a worth in market and it has customers from all age groups. The soft drink market is a big market and BRITVIC PLC is targeting a large number of customers by providing different products.
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The company believed that soft drink market is very competitive as well as profitable, but care consideration is required to convert opportunities into revenue. Moreover soft drink is also fast growing industry as many new companies are entering into the business. BRITVIC PLC considers Coca-Cola Schweppes Beverages (CCSB) as a major rival. BRITVIC PL Care providing new products to the customers as there is much growth in the market but they keep a close eye on the price mechanism to attract potential customers. BRITVIC PLC main goal is to reduce operating cost while providing customer satisfaction and superior quality goods to the clients. BRITVIC PLC invests heavily on advertisement to flaunt sales. They are facing competition not only from rivals but also from substitutes products like tea, coffee, shakes and alcohols. If a company set its price wrong then they will miss out the trick of the business. Pricing looks simple to an ordinary customer but it is an uphill task for the company. Therefore BRITVIC PLC is very careful while setting price of a product. Sometimes the companies opt the middle of the range pricing, in this strategy the price is set at middle in contrast to competitors products. If one cold drink of Pepsi is available at 2 ponds and same product of Coke is available at 1 then BRITVIC PLC will set price at 1.5. It will be done to hit the psyche of the customer. Segmentation is also done to promote a particular product in a selected region. BRITVIC PLC should be very careful while selecting a region and make products according to the needs and demands of that region and area. Increasing product range and product line is also an art to surpass your key rivals, as we can see that BRITVIC PLC is offering such a diverse product range to match with the consumer needs but they should be careful while setting the price.
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CHAPTER THREE: RESEARCH METHODOLOGY


The research is based on primary & secondary data. This is a quantitative research and will be based upon data from statements of BRITVIC PLC beverages. Data will be analyzed through trend analysis technique. A questionnaire is also used for the purpose of this study. The questionnaire has 10 questions on 5 point liker scale. The respondents were asked to rate their responses from strongly disagree to strongly agree. For this report we are also going to refer different foreign and local studies done on the topic . There is a price of everything. Estimating the price of a predominant service or the product is very difficult. With the help of our study questionnaire we will see the impact of price on the customers. Every company has its own profit oriented and sales oriented goals, however, the companies know that the customer is well aware of the prices and the quality of the products so they will never try to charge extra profits from the customers. In many companies, the management pricing mainly focuses on the volume of sales. The goal of pricing the products can be to increase the sales volume and to gain the market share.

3.0 Population
The population is the all the customer of BRITVIC PLC who used its products. BRITVIC PLC is one of the renowned brand name of UK. It has customer that belongs to different age group, race, culture and religion. Thus it is important for the company to gather some facts on the characteristics of their customers. The present will help the company to understand the psyche and perception of the customers regarding BRITVIC PLC pricing strategy and policy. Therefore we will collect data with the help of a 5 point likert scale questionnaire from 30 respondents about the pricing BRITVIC PLC. It is evident from
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the previous research that customers keep an eye on substitutes and price mechanism therefore it is important for BRITVIC PLC to provide quality products at reasonable price. It will not only help in retention of the existing customers as well as opens new horizons for the potential sales and revenues.

3.1 Sampling Units


The customer of the BRITVIC PLC beverages will be taken as the sampling units. There are thousands of customers that use the BRITVIC PLC products on daily basis. We will have a light conversation with few customers as a pilot survey for the study. This will help in making a backup assessment of the pricing strategy adopted by the company and it can also make the understanding that how the company bought the success with the help off pricing strategy. After conducting different interactions with the customers we will then in a good position to make a questionnaire regarding the company pricing policies and trends. In this regard 5 point likert scale questionnaire were also used along with the interviews. The results and findings are very much dependent on the questionnaire responses of the respondents.

3.2 Sample Size


Sampling size for this study is 30 respondents. UK is a large country in terms of population and there are people from all age groups. Beverages and soft drinks are popular amongst the UK population. Everyone used soft drinks regularly in UK. So we will collect data from all age groups as mentioned in table 4.0.1, as all are the customers of BRITVIC PLC. However, is restricted for the research to be undertaking battle for it will be easier to respond to only 30 personnel for conducting the analysis of this research. Is extra people were added into this sample size then it would become to very difficult to
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make a proper understanding between the different information gatherings according to the questionnaire provided to the persons for the respondents of this research respectively. To further adding the importance of creating analysis on 30 respondents will still gave a detailed idea regarding different pricing strategies of the organization which is in discussion in this particular cases and research. 30 respondents will be more than enough to make a detailed analysis solution regarding to the research problems that was discussed in the introduction section of this research.

3.3 Data Collection Techniques


Data would be collected from following sources: Both, primary and secondary data will be used in this research. An appropriate and efficient research may be made with the help of primary and secondary data. The data will be gathered in the form of secondary means by the sources of books, journals, websites, government reports and former linking of the research papers and studies. The data used in this research will have its own substantial resource. The data will also be collected with the help of internet sources. We will also collect first hand data with the help of a five point likert scale questionnaire. The analysis is barely dependent upon the first hand data that was collected with the help of a questionnaire from the respondents.

3.4 Questionnaire
Questionnaire is the most adoptive and used survey tool. It is renowned and famous for its timely and abrupt response. Researchers used it as it gives away hard and fast facts and results. This is the reason that we have chosen the survey questionnaire method for our research study. The questionnaire used for this purpose has 10 questions and all the
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questions are on the 5 point likert scale. Likert scale questions are easy to interpret and present in graphically. We will collect data from about 30 respondents with the help of this 5 point likert scale questionnaire. A sample question is The prices of BRITVIC PLC always changed to higher side? 3.4.1 Gender Soft drinks are popular among both male and female. Therefore we will select data from both of them in order to maintain a balance in the study findings. Gender Male Female

3.4.2 Age of the Respondents Age is also an important factor to understand the psyche and perception of a person. Beverages are sold and buy by all the age group people. So we will also divide our population on the basis of age. We will select data from all the age group people to provide the optimal findings from the research. Type Group- I Group- II Group- III Age 20-25 Years 26-40 Years 41 and above

Table 3.1 Age of respondents

3.5 Data Analysis


The analysis of the data will be done in the following ways.

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Statistical tools Bars Graphical representations

3.6 Reasons for Methodology Selection


Survey tool is selected due to following reasons: Useful in generating required results. It is cheaper. It is Faster It is Reliable

3.7 Why the Methods have been Selected?


Analysis is a game of finding and evaluating the financial data of an organization. The thesis has been divided into two different sections. The first section of the thesis is about to analyzing the importance of pricing strategies which would be done with the help of primary research like a five point likert scale questionnaire, while financial data of the organization can be found from the website and annual and interim report of the company.

3.8 Limitations
The biggest problem which may be face by the researcher will be low involvement of respondents in conducting the research. Finding right respondents at the right time is very
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important from the view point of this research and anything lacking in this regard can devastate the entire result of this thesis.

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CHAPTER FOUR: ANALYSIS


4.1 Analysis of the Study
During the interactions with the customers and the survey with the questionnaires was conducted many new insights regarding the perception of different people was recorded. This greatly helped to make a proper analyst solution regarding the research problems that were provided in the introduction section of this research paper. The perception of people was greatly emasculated in terms of the organizational strategies regarding the prices of different products they were offering and the perception of the customers of to those respective products was identified as well. As the people who participated in the survey clearly gave their comments to the researcher in order to provide the proper requirements met for developing an understanding between the pricing strategies being implemented by Britvic plc. Organizations around the world and the possible reaction of the customers respectively plays an important role to change in prices of the products It has become very important to understand the relationship of customer behavior in accordance to the pricing strategy being implemented by the organization, to provide the particular products which are needed by that particular customer. There is always in reaction the two behaviors one of the organization and other of the customer, it can be said that theyre inversely proportional because the organization wants to keep the prices as high as possible but the customer wants the prices to become as low as possible. To so this relationship it can be devised that many requirements have to be taken into consideration by different organizations. So a proper pricing strategy could be implemented which will be usefulness for the organization and the customers as well.
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There are a lot of ways by which the pricing strategy could be manipulated by the organization as in the literature review of the study there are detail of so many pricing strategies which are being implemented by different organizations. The combination of different pricing strategies would ensure that the consumers will get the right price of the products and services. To the usefulness of include such type of combined pricing strategies the customers will be knowing that the organization wants to provide to the customer best possible product at affordable rates and a relationship can be built on the basis of good pricing strategies. It can again be said that the organization has the direct relationship which cannot be withdrawn and must be on the right angle so that the customer does not de track from products of any given organization in the market . To further explain the relationship of the organization and the customer it must be understandable that the pricing strategies being implemented by the organization will have a direct effect on the customers and therefore the relationship of the customer and the organization is directly subjected to the policy strategy the implementers on the first place. In order to get the customer loyalty it is important for the organization to provide a quality product and services and as well as keeping the prices as low as possible. It may become difficult for the organization but weve seen in the longer run customer loyalty pays off at large level. When the organization has successfully captured customer loyalty than they are guaranteed scales of increased market share and increased profit margin that is because they will have confirmed sales around the year. Moreover customer loyalty can be achieved there are a number of possibilities by which the organization can have fruitful results and can be beneficial for the organization in the longer run (Janiszewski and
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Lichtenstein, 1999). The importance of understanding that roll off customer loyalty play the most dynamic part in the relationship of the organization and the consumers in any given market. This part of the study will be consisting of the data that will support the complete study. The analysis will be providing the result for the methodology section. As the decision of the customer to buy a product is always influenced by the price. Therefore the company has to determine the quality and the prize of their services and products very carefully. A customer can purchase from another organization just because of the smaller difference in the press. There are many pricing objectives. There are many possibilities of implementing different pricing strategies by different organizations. Some organizations would rather go for the profit oriented approach and they will not care for the customers requirements mood. They keep higher prices for the products or services they provide to the customers.

4.2 Results of the Survey


Mainly there were ten questions given to the respondents of the survey mainly all the questions were meant to get the proper idea regarding the pricing strategies being implemented by the BRITVIC PLC beverages in UK to over the passage of time. All the questions had this significant reputation regarding their usefulness to this research and therefore they provide the proper understanding of the relationship of prices strategy with the BRITVIC PLC. Britvic organization has implemented the pricing strategies in order to gain acceptance and loyalty of the customers. Apart from these BRITVIC PLC beverages was able to get the market shares and increased sales around the country that is
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why it was important to understand the relationship this organization had built over the years with the customers and the perception of the customers was also important to note regarding this organization. Although the pricing strategies implemented by BRITVIC PLC beverages was of different time periods which was a difficult thing to study about that is because the market trend changes when a financial crisis is seen. Even in the financial crisis the sale of this organization did not had to see a major difference.

Figure 4.0 Gender Out of 30 respondents 16 were male and14 were female. So we can say that the ratio of male and feamle is kept in mind while collect the data from the respondents. Type Group- I Group- II Group- III Age 20-25 Years 26-40 Years 41 and above Frequency 9 15 6

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Table 4.0 Age group The data is collected from all the age groups. Majority of the respondents falls in the age Group- II. We can say that BRITVIC PLC products are popular in all the age groups. Below is the pie chart of age group to give a clear picture

Figure 4.0.1 Age Group Now we will give results of the survey items on 5 point likert scale

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-Number of respondents v->>

Figure 4.1: Does BB changes its products prices regularly According to the response rate 22 respondents were of the view that prices do not change regularly but on the other hand 6 respondents were of the view that prices changed abruptly and regularly. Against this question 2 respondents gave neutral response.

Number of respondents

Figure 4.2: The prices of BB always changed to higher side


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Against this question we got the response in the favor of company, as out of 30 respondents 5 were of the view that prices always changed to higher side and also 24 responded inversely and negate it only 1respondent remained neutral regarding this statement.

Number of respondents

Figure 4.3: The prices of BB always changed to lower side This question is very much similar to question no 2. In this question the respondents gave away the appositive answers. Against this question we got the response favoring BRITVIC PLC, as out of 30 respondents 20 were of the view that prices always changed to lower side and also 8 responded inversely and negate it only 2 respondents remained neutral regarding this statement.

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Number of respondents

Figure 4.4: BB will still be favorite if it increases the prices of its products According to the response rate of 30 respondents, 16 thought that BRITVIC PLC will remain favorite even if the prices rose, 3 remained neutral and other 11 had inverse opinion as they felt that BRITVIC PLC will not remain favorite if they charged higher prices.

Number of respondents

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Figure 4.5: BB has the quality product that is why it can increase the price Out of 30 surveyed respondents only 14 respondents were of the view that BRITVIC PLC has superior quality products which is good for the company. On the other hand 11 respondents answered against the company that it can charged more prices due to quality. While 5 respondents remained neutral.

Number of respondents

Figure 4.6: BB has the low quality products that are why it can decrease the price 5respondents agreed to the above statement and 3 remained neutral and 22 were also disagreed to it. It is encouraging for the BRITVIC PLC as majority of the people were of the view that products are superior in quality.

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Number of respondents

Figure 4.7: BB changes the price strategy regularly Out of 30 respondents 33% were agreed to the statement and 67% disagreed and the no one remained neutral. It is also encouraging for BRITVIC PLC and they should not change their prices abruptly.

Number of respondents

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Figure 4.8: BB has the most exciting offers in its advertisment It is evident from the reports of BRITVIC PLC that they invest heavily on advertisment and the repondents had also replied in exactaly the similar way as out of 30 respondents 27 agreed that BRITVIC PLC has exciting advertisment offers with a marginal 2 respondents are against the above view, also 1 respondent remained neutral.

Number of respondents

Figure 4.9: I am pleased with BB completely It is a very good and encouraging situation for the company as majority of the respondents are very much happy and pleased with BRITVIC PLC. It is an ideal situation to promote and generate more profits and sale volume. As 24 out of 30 respondents were pleased with BRITVIC PLC and 0nly 4 were against the statement. 2 respondents remained neutral in their response.

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Number of respondents

Figure 4.10: I am not pleased with BB commmpletely This is exactaly the oppositve question to the previous one. Such kind of questions included to check the psyche of the respondens.It is a very good and encouraging situation for the company as majority of the respondents are very much happy and pleased with BRITVIC PLC. It is an ideal situation to promote and generate more profits and sale volume. As 24 out of 30 respondents were pleased with BRITVIC PLC and 0nly 4 were favoring the statement. 2 respondents remained neutral in their response.

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CHAPTER FIVE: RESULTS AND FINDINGS


In order to explain the overall findings of the survey questions it can be easily explained that the organization was famous and every respondent knew about the importance of this organization. To have the results of individual respondents and accordingly the questions individually if looked upon they can give a detailed idea regarding the importance of different pricing strategies that were implemented by this organization. To further enhance them portent of this research is that the organization was able to achieve customer loyalty and provided to the customers good quality products by which the customer did not hesitate to purchase its products. Apart from this we can also find out that to the importance of this organization also profound that even in financial crisis in the UK still this organization was able to create the handsome amount of profit margin because it had loyal customers to backup at the time of the transactions. Otherwise the organization had been implementing different strategies regarding the pricing strategies regarding products and services of this organization. The most important factor to which were taken into consideration was that all the respondents knew about the pricing defenses and the strategies that werent limited by this organization this creates an idea about the consumer behavior regarding that they know about organizations actions that were taken in the past and present. This way we can further enhance the understanding off continuation between different pricing strategies and relationship of the customers to the organization have a direct link which would go for the betterment of the consumer and the organization combined together. If this cannot be achieved in there are many difficulties that can be seen by the
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organization and the customer combined. The different and reducing breaking strategies not only increase the possibilities of this organization to grow into many different aspects but the capability of the customer satisfaction was also achieved by this organization that was because of producing good quality material products and accordingly pricing was maintained so that maximum utensils regarding the customer satisfaction was achieved by this organization . The detailed understanding become the necessity for the point of view of the organization to and the customers combine to together that will get the best outcome for both the organization and the customers. The futility of creating low priced pricing strategies the organizations will not only get the attention of the customer but many positive aspects will also be seen by the organization. There are too many examples that can be seen in the past and the present by different world leading organizations to hold them for size on profits and market shares . The aspect of increased understanding between the market shares and providing to the customer is almost like a single impact on the commodities being provided by the organization It is clearly understandable from the findings of the survey that the importance of the customer satisfaction plays the most important role in any given organization . That is not only because they pay the money for any particular product or service that is being rendered by any organization in the game and market. Other opportunities can also be obtained by the organization with the help of customer satisfaction. Mainly to the organizations most important game is to get ahead in the competition and that can only be achieved by getting the maximum sales in the given market.

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5.1 Findings of the Study


Basically the finding of this case study is to get the proper idea regarding the importance of different pricing strategies being implemented by the BRITVIC PLC. It can be easily said that the importance lives with the customers. The organization that are able to provide the customer the quality products and services for those companies that customers are willing to pay any price possible that is not because of any internal relationship between the organizations. Same is the case with Britain plc that is able to maintain a close relationship with its customers .Moreover the basic need of understanding the relationship to being made between the organizational decision makers and the customer of the products or services organization is producing it becomes very important to create a balance between them, because if the balance is forced on the single side than automatically the opposite entity will be facing a great loss. Britvic was aware and therefore they kept a balance between demand and supply of the products. Begin see that the organizations who implemented higher prices and were offering low quality products were flushed out of the markets because the customers did not achieve those type of products that is why it must be understood by the organizations to provide products according to the requirements of the customers. Therefore Britvic plc had provided right products at right time. The customers on the other hand will ensure that if the product is up to the mark and to the quality and in the price range the sales of that particular product. Then the sales will be ready to set on the fire in this way the requirement of the customers has to be fulfilled if that is not fulfilled. Then there is no purpose for the customer to purchase any products from the market of that particular firm. Britvic maintained the prices at affordable rates to deal with it. Therefore it
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becomes very important to understand the relationship that the organization must target customers so that a proper give and take relationship can be built by which the combination of pricing strategies and the loyalty of the customers combined together will be definitely advancing for the benefits of both the players that is company (BRITVIC PLC) and customers. Most important findings of this research was that if the organization is looking upon profit margin and does not care about the reported off the customers been in the short run the organization might be having good profit margins but with the passage of time they will be flushed out of the market because the customers can not prolong this type of trend. In other words if the organization are looking only two words its own personal goals then the fulfillment will become difficult but if that particular organization would combine the interest of the customer as well then the organization will get a good day of sales with a profit margin as well . Therefore Britvic cared and give value to their customers. An understanding must be developed by now that it is very difficult for the organization to capture the market share or increase their profit margins without the help of customers and the customers can only be helpful if the requirement can be fulfilled. As to the possibilities of the future to come there are many ways by which the organization can implement extra advantages to the customer may be special offers on their products and services or as explained in the literature review of this research. There are many different pricing strategies that can be implemented by the organization which would enhance their sales and the satisfaction of the customer can also be achieved expressively. The usefulness of implementing such type of pricing strategies creates big difference between the compact does in the market and the competition can also be
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secured. If a good understanding can be created between the organization and the customers with mutual benefits and showing some concern for the customers BRITVIC PLC will automatically become the market leader and the present strategy could be easily managed accordingly . It is the will and discretion of every organization to use the any pricing strategy without any hesitation and fuss. Therefore BRITVIC PLC has adopted mix pricing strategy with a combination of skimming and penetration for its different products. This arguably is the main reasons behind the success of BRITVIC PLC as they target every market with unique pricing strategy and having a good look at the key competitors. The impact of understanding being developed between the customer and the organization can be on the positive side and provide extra benefits to the organization. Again this is not restricted to any one particular organization but any organization can achieve this type of strategy with a smooth and continuous research and development and winning the loyalty of the customers. BRITVIC PLC has managed to win the loyalty of the customers which is a remarkable achievement. It has become possible due to the company continuous efforts and due to the competitive product pricing. The relationship between the pricing strategy and the sales of the particular product of a new organization is directly proportional to the pricing been implemented and the consumers purchasing the particular product or service . To further enhance the understanding of the importance of the relationship between the organization and the customer a single determinant is in question and that is the pricing strategy of that organization. If the prices are capped on the lower side then automatically a number of customers can be attracted and the sales of the particular product or service could be enhanced into great
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numbers which can be useful for the any organization. The pricing strategy that is being implemented by any organization has the direct effect on the consumers of the particular product or service the organization is providing to them. This can also be achieved by other means as well but the main as sense of achieving this type of strategy is to provide satisfaction to the customers to end and finalizing this requirement according to their needs . This type of situation can only be unveiled by a mutual consent of the consumers and the organization combined. Without this it cannot be achieved and difficulties can be seen for the organization in order to gain the market share and the profitability. Therefore BRITVIC PLC keeps a close eye on the customer demands and needs and mould products according to their taste it is also a big reason for the success of the company. Although it becomes very difficult but it has to be maintained so that the organization can have a good future in the given market and in the eyes of the customers they are targeting on the first place. The usefulness of providing different pricing strategies will not only ensure that the consumer will be getting a good quality product at the end of the day. In An exchange that customers will be happy to provide a good market share to that particular product or service and eventually to that organization as well. These are the detailed reasons by which we can clearly understand the usefulness and importance of different pricing strategies being implemented by BRITVIC PLC around the world and that were the key to success for BRITVIC PLC.

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CHAPTER SIX: CONCLUSION AND RECOMENDATIONS


As proceeded to the final chapter off this research study it is concluded that the importance of the pricing strategies is a very much effective way of increasing the customer loyalty for any given organization. May be a product based company or a service based company it does not really matter the main factor which is responsible for approving any particular company regarding any given market scenario is the impact they have on the customers. The impact can be divided into different categories one category is that the pricing strategy should be recording to the requirement of the customer. But if prices are too high unknown enough customers are left behind so the company would automatically see its sales to the very few numbers. BRITVIC PLC is aware of the above and therefore they are providing reasonable and affordable prices to the customers. This factor is normally ignored by majority of the organizations. Therefore this is one of the most important factor which should be taken into consideration by the BRITVIC PLC, it will not only reduce the chances of getting lost sales but in fact the loyalty of the customers can be increased to win the number of customers will also increase. The basic concept behind the legality that will influence the organization in which the pricing strategies can be manipulated so that the organization could reduce the prices to the customers is just a procedure that they must understand before they actually implement any new pricing strategy. In this regard BRITVIC PLC did marketing research before changing its pricing strategy to avoid the lost of the key customers. The second most important factor which should be understood by the BRITVIC PLC is that when setting the pricing strategies for any new product they keep in mind the quality
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and customer satisfaction comparison. BRITVIC PLC also analyzed previous similar products price settings and their impact on the customers while actually deciding and setting the price of the new product. BRITVIC PLC also sometimes set price of new product for a fixed limited time period and then see and analysis if the price is right in the mind of customers for that new product. BRITVIC PLC also give emphasize on the concept of increasing the understanding between the customer and the organization. The proper police made between these two entities so that they should know about the exact record and off each other. if this can be achieved then there are a number of opportunities opened up for both the entities the organization owns profit as much as possible and the consumers get the best quality products on the least prices. Although this may be difficult for the organization in the beginning but still the eventual way that will be on the benefits and set off the organization to many opportunities, sales and profits.

6.1 Findings of Empirical Analysis


From the point of view of the customers it becomes very important that the price they pay for any particular product or service must be giving the proper satisfaction on the requirement on the first place. To further explain the importance of these useful techniques implemented by the organization not only created a revolution in the pricing strategies but different relationships could also be seen with respect to the point of view the past and existing trends of the customers. BRITVIC PLC strives to provide satisfaction to the customer with the help of good products as compared to their key competitors. The customers play a very important role in any given market and to any
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given organization. It has been seen that an increased attention is provided by the BRITVIC PLC that not only increased the importance of the customer satisfaction but the sales of the organization are also depending upon the customer satisfaction entirely. To further explain the critical analysis for the Research it becomes very important to understand the relationship of the customer and the organization. If there are requirements from the organization accordingly and there will be requirements from the customers as well and vice versa. Although the organization is a very important factor that is to produce a particular product and for that there must be having some reward. Still there is room for the customer satisfaction and choice because they are the ones were going to pay for that particular product. Therefore BRITVIC PLC also provides products according to the demands and gives a quick response to the complaints gained from the customers. If however particular product or service is not up to the standard to the customer and the customer rejects the particular product or service than it is the responsibility of BRITVIC PLC that they should add the product with some extra features and quality or they should be creating an alternate. BRITVIC PLC believed that cost of the organization can be easily recovered by producing different pricing strategies and efficient processing techniques that will not only reduce the chances of a failure on the first place but will increase the chances of getting maximized profits. These are just simple examples steps that can be taken by the organization to further enhance their capability in the eyes off the customers. It is evident from the survey findings that customers like the products of BRITVIC PLC and they are very much satisfied with the pricing strategy adopted by the

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BRITVIC PLC. They should concentrate and try to capture new markets to boost up their revenue and profits.

6.2 Recommendations
From all the research being done in this study it is going to be very clear now that the objectivity of different pricing strategies is not beneficial to anyone single entity. In fact the pricing strategy to further combines together the fruitful results for the customer and organization combined. This is the same reason why this research was being conducted on the first place. I would be recommending that it becomes very important to understand the relationship between the customer and organization that produces different products and services. So this phenomenon must be started into great detail records so that the overall understanding between these two entities could be developed and increased benefits for both the entities. This may become a very idealistic approach in the coming years that is why it becomes more important to work on this situation as soon as possible. I would also recommend that the BRITVIC PLC most be looking forward for the longer run and instead of trying to capture as much profit as possible from the market. This way they will be able to gain a limited amount of profit in the very small timeframe after that they will be facing a great loss. The BRITVIC PLC is on the move to catch up new horizons. The need of the day for them is just to concentrate more and try to convert new opportunities in to business. Customers are loyal with BRITVIC PLC and thus they get even more profit by provided products at proper price. They should not changed pricing strategy of a target product unless customers are buying it in routine with normal volume. If in case of decrease sales then they should think for the further action and plan.

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APPENDIX
Questionnaire of the Study. Select the suitable option Gender: Type Group- I Group- II Group- III Male Age 20-25 Years 26-40 Years 41 and above Female

The following questions relate to the pricing strategies conceived by BRITVIC PLC beverages that promoted this organization and attracted and retained a huge market share in the United Kingdom. NOTE.( All the participants of this survey were or are having experience of BRITVIC PLC beverages and or its brands)

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Strongly Disagree 1. Does BB change its products prices regularly? 1

Disagree Neutral

Agree

Strongly Agree 5

2.

The prices of BB always changed to higher side? 1 2 3 4 5

3.

The prices of BB always changed to lower side? 1 2 3 4 5

4.

BB will still be favorite if it increases the prices of its products? 1 2 3 4 5

5.

BB has the quality product that is why it can increase the price. 1 2 3 4 5

6.

BB has the low quality products that are why it can decrease the price. 1 2 3 4 5
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7.

BB changes the pricing strategy regularly. 1 2 3 4 5

8.

BB has the most exciting offers in its advertisements. 1 2 3 4 5

9. I am pleased with BB completely.

10.

I am not pleased with BB completely. 1 2 3 4 5

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