So, who’s not heard of Irn Bru? Well I’m sure there
is one or two of you out there but you’re probably from another undiscovered
planet. It’s famously known as Scotland’s other National Drink. It’s far
superior to Coke. It’s overwhelmingly better than Pepsi. That’s my opinion. But
of course, everyone in the Galaxy has heard of those two drinks. Just you
listen to me because as I’m a true Scot I can categorically say that Irn Bru is
the best drink in the whole wide world (well at least in Scotland) and, it’s
been known to cure hangovers and it tastes delicious. It works for me, and it
contains a closely guarded secret recipe so it must be good for something! All
I know is it goes down a treat with a fish supper.
Irn Bru is one of the largest well-known carbonated
soft drink made in Scotland (from Girders)
by a company named AG Barr. Based in Cumbernauld, North Lanarkshire, Irn Bru
began its life way back in 1901, under different titles, firstly named
Strachan’s Brew then renamed ‘Iron Brew’. Things were going great until shortly
after the Second World War (1947), when a new labelling law was introduced by
the Government stating that a brand name should be a true description of what
is to be sold and since the product wasn’t ‘brewed’ then the name on the label
had to be changed. This forced the company to rethink and source a suitable but
similar name so cleverly they altered the spelling of the brand name to the
current and famous name ‘Irn Bru’. The fundamental Barr brands are: Irn Bru,
Strathmore, Rubicon and Tizer. Irn Bru has been a great asset to the company as
they’ve successfully managed to keep their product going throughout the years and
encountered no signs of any significant decline even through changes in
consumer needs and modification in Government plans which is what made their orange
coloured drink very much established to date.
According to Dibb et al (2016, p.4) marketing defined by the Charter
Institutes of Marketing states “Marketing is the management process responsible
for identifying, anticipating and satisfying customer requirements profitably.”
The marketing mix
plays an important role in the outcome of a products success in the marketing
world. The aim of marketing companies is to get
the attention of target audiences by using slogans, design of packets, general
media exposure and celebrity endorsements (Cisneros, 2015). The
Marketing mix is made up of the Four P’s:
- · Product
- · Price
- · Place
- · Promotion
The Four P’s play a major part in the making of Irn
Bru. Each four sections of the marketing mix work together and intertwine to
get the ball rolling within the company to obtain an achievable product that
will last a long time with a lesser chance of failure.
Product
According to (Brunello, 2014) "a successful brand creates and sustains a
strong, positive and lasting impression in the mind of a buyer" cited in (Sadek,2015,p.19).
Correctly branding a product is vital to the makers as it is an effective way to distinguish one company’s product from another. The competition in the marketing sector is hugely increasing due to rivals offering similar shapes, sizes and colours of products therefore the focus on branding to make your product stand out and has an identity from others is tremendously important. Branding your product helps build brand awareness and value, which creates recognition. I’m sure most of us can recognise the vast majority of these famous high street brands.
Correctly branding a product is vital to the makers as it is an effective way to distinguish one company’s product from another. The competition in the marketing sector is hugely increasing due to rivals offering similar shapes, sizes and colours of products therefore the focus on branding to make your product stand out and has an identity from others is tremendously important. Branding your product helps build brand awareness and value, which creates recognition. I’m sure most of us can recognise the vast majority of these famous high street brands.
These logos are a good examples of widely recognised brands. |
Irn Bru is renowned for giving the impression of strength
and courage due to the brand advertising boasting the logo that depicts a
strongly built man. The first brand logo displayed a picture of a famous Highland athlete
named Adam Brown. Nowadays, Barr have made their container simpler and
more eye catching on the shelf compared to other products by making their stock
a bright blue and radiating orange colour and still keeping the ‘girder’ theme.
This is backed
up with design director Stephen McDavid stating that the latest logo design for the 2016 can “aims of implying strength,
industry and authenticity” (Dawood, 2016). It is clear to see that A.G Barr over the years has
remained on a successful marketing course by maintaining the theme of
strength.
An illustration of how the Irn Bru logo has changed over a period of 115 years. |
Irn Bru is dispensed in glass bottles,
plastic bottles and cans. The glass bottle was the most commonly sold bottle of
yesteryear, which offered the consumer a chance to return the empty bottle, known
to the kids as a ‘glass cheque’ and ‘ginger bottles’, in order to redeem a
deposit already incorporated into the price of the sale. This built up a great
and unique customer relationship with Barr especially when kids could
collect bottles and return them to the shop in exchange for sweets to the value
on the cap of the bottle. The very first price on a returnable bottle in 1905
was a half penny (old money). The returnable deposit ceased in December 2015
after a 110-year era.
Products go through a four-stage
process in the market, which is known as a Product Lifecycle. These stages are
named:
- · Introduction
- · Growth
- · Maturity
- · Decline
Companies have been known to introduce
a product extension strategy. Usually by this time most of the fizzy drinks
companies are in the mature stage with very little growth happening unless for
example they introduce a new product to their drink line or give their product
a complete overhaul whether it be improving the flavour or promoting less sugar
content (Edward, 1981). Product development is “ a strategy of increasing sales by improving present products or developing new products for current markets.” (Dibb et al, 2016, p.52) A.G Barr has adopted this technique by introducing their sugar free drinks and their most recent new logo design for the Irn Bru can. Irn Bru recently brought out a new drink called Irn Bru Xtra, which
saw a huge increase in sales and profit for the company. However sometimes
demand can play a major influence on sales. More recently due to a large
increase of SNP MP’s in Westminster the sales of Irn Bru has increased by 60%
from 2015 to 2016 (BBC, 2016).
In the recent wake of the government passing
The Soft Drinks
Industry Levy (SDIL) in 2016 know as a sugar tax law, they imposed a hefty tax on all
sugary products to
help tackle obesity and other health problems due to sugar intake. This could
have a huge impact on drink companies like Barr that may lose out on
business. Barr have come up with a new marketing strategy to widen their
production line and attract more customers by introducing a new zero sugar
drink with more taste by naming it Irn Bru Xtra. Adrian Troy head of marketing
for AG Barr states, “It is clear that the market is changing and consumers
want more choice. We’ve listened to this and have worked incredibly hard to not
only develop Irn Bru Xtra, but to make it available to buy this summer”(The Drum, 2016). It shows
that they are aware of change within the consumer industry and are in a
position to adapt and bring something new into the market that will not only help
the company but also benefit the health of their customers.
Promotion
Irn Bru is targeted at a wide age group
due to it having the reputation as Scotland’s National Drink. Although Irn Bru is not on
the same global commercial par as Coca Cola and Pepsi, the advertisers have
tried and successfully promoted their product within the UK with a series of
funny TV adverts. Irn Bru is also promoted in different media platforms e.g. radio,
television, billposters and cinema adverts to enhance its image and spread
awareness to new and old customers. This is a major part in promotion, as it
creates more awareness and is a faster way in engaging with the public and
consumers. It is known for its humorous and catchy adverts such as the Christmas
Snowman Advert which received an overwhelming 1.6 millions views on Youtube and
the ‘Irn Bru Gets You Through’ ads with the hashtag Gets You Through on Twitter.
This advertisement was initially based on a naughty humorous approach. It is created to make their audience laugh and spread the word and make people remember their product for their witty phrases.
|
The way of promotion got huge support
from the public as the company found popularity in its humour. Fizzy drink companies
generally don’t talk about the negative side of their product. It may very well
be unnutritious or unhealthy as most fizzy drinks contain water with bubbles
and lots of syrup and sugar and loads of E numbers, and all the stuff kids like
because it not only looks attractive but also tastes great. It rots your teeth,
gives you diabetes, makes you hyper and makes you fat so we are told. They just
want to sell their goods fast, globally and make a serious profit. It’s big
business. Every kid and adult gets thirsty. They just want a drink to quench
their thirst. Take the famous Coca Cola ‘Top of the Hill’ commercial (1971) which
featured the new breed of children holding a bottle of coke singing, “I’d like
to buy the world a coke”. This was a ground-breaking advert that truly reached
the global market. A year later the song even became a hit under a different
title, “I’d like to teach the world to sing”, by the New Seakers. Years later,
Pepsi forged a commercial endorsed by Michael Jackson featuring a kid sharing a
Pepsi with him (New Generation in 1983) thus reaching out to every kid on the
planet trying to get them to buy their drink.
Source: https://ahrefs.com/blog/going-viral/ |
David McSweeney (Blogger,
Web designer, Musician and friend) created an infographic depicting what would happen to an
Englishman after he drank Irn Bru. This was an excellent demonstration of unintentionally promoting the product. The infographic went viral in no time with people
appreciating the satirical comedy.
In 1998, A.G. Barr moved Irn Bru to an
international audience by expanding their market further a field to Russia. The company launched a new advertising campaign that involved
an animated ostrich that was broadcasted on TV with a catchy slogan “Xaba
Xaba”. They later brought out an advert of people dressed in penguin costumes
appearing to be messing around in a supermarket. Strange as it was it was a
great advertising success. Barr's were able to promote their product
confidently in Russia by relating their advertising to a more Russian theme. They
also currently sell globally in some countries e.g. Canada, Norway and
Australia whilst continuing their quest to dominate their product closer to
home in Ireland and England.
Although we don’t have the magnitude of the World
Super Bowl, A.G. Barr interaction with sport has seen professional football
teams playing for the title of The Irn Bru Cup. Scottish Rugby was sponsored
too allowing them to reach a vast range of people through the media seeing to
over "10 million viewers
through the 60 live games broadcast during the season"(Talking Retail, 2009). In 2014 we saw the
sponsorship of the Glasgow 2014 Commonwealth Games. They used this opportunity to
promote their product in venues and through the athletes themselves. Other products that they
promoted were their Strathmore water and Rubicon. This played a successful role
through the media at engaging consumers and creating a positive relationship with
the brand.
During the Commonwealth Games A.G. Barr
introduced their first ever ‘Bru Store’ in Glasgow, which was made from containers
that were designed from the Irn Bru logo. The store sold Irn Bru merchandise
like socks, jumpers, tops, tracksuites, onesies and keyrings. This was such a
unique and clever idea from the company as it pulled in thousands of people
that wore their logo and promoted their product during the Commonwealth Games.
Companies often donate monies or gifts to the less privileged or often needy. This is a goodwill gesture, which will gain the company free advertising in the form of local press/TV recognition. This is a great marketing strategy and makes the company look good. After the Commonwealth Games, A.G Barr donated £20,000 to the Prince and Princess of Wales Hospice Brick By Brick appeal.
A.G Barr has effectively set up campaigns to involve
the public and bring a more positive awareness of their product. This was
successfully done at the 2014 Commonwealth Games where they set up an effective
promotion named ‘Cheer we go’ which saw around 15,000 people win prizes and tickets to the games.
They also sponsor a Christmas event, which has been on
the go for close to 100 years, currently known as the Irn Bru Carnival, which
is hosted at the Scottish
Event Campus (SEC). Stalls, amusements and fast rides
attract every kind of thrill seeker. Irn Bru branding is being used across the
entire venue whilst showing off the Irn Bru colours with the logo being visible
everywhere including staff wearing the Irn Bru T-shirt. The way they’ve been
promoting their product is through TV, local radio stations, newspapers and
local transport e.g. buses.
Take Sainsbury’s for
example, a company that demonstrates promotion by offering a Reward Scheme. Buy
their goods. They give you points. What do points make? We all know the answer- prizes. This became a very successful promotion strategy with Sainsbury’s Nectar Card
the largest reward scheme in the UK. This allows customers to earn points on
their card which can be used on a wide range of other business offers that are
also using this platform to promote their product and brand. Reward cards allow
the company to have more of an insight into their customers’ preferences and
shopping habits. In 2015 there were around 19 million people in the UK that had
a Nectar card (Telegraph, 2015). This shows the vast volume of consumers that Sainsbury’s are
able to reach out to.
Place
In
order to capture a sellers market, the potential place of delivery is paramount.
A.G Barr use intensive distribution to supply their product. This has a great
benefit as it allows the product to be sold in many places e.g. shops, cafés, pubs,
McDonalds and restaurants. They aren’t fussed where their product is sold
whether it is the Pound Shop or the local vending machine. Using intensive
distribution increases brand loyalty and the consumer becomes more familiar with
the brand therefore allows the product to be easily reached.
“Channels of distribution make products available at the right time, in
the right place and in the right amount”(Pride and Ferrell, 2015, p.358). A.G Barr are dealing with a large
buyers market and have to logistically distribute their product to a
professional level. By maintaining a good working relationship with their
employees dispatch within the business is in place to get the best service to
their potential buyers.
Horse
and cart originally distributed Irn Bru. A horse could travel so far in a day
so Barrs were limited on the distance they could distribute their product.
Within
Scotland A.G. Barr often sell direct to local shops, delivering their drinks in
bright orange and blue coloured lorries displaying the famous Irn Bru logo.
.
Selling
nationally and internationally usually involves an intermediary supplier e.g.
cash and carry wholesale companies. Nowadays, with modern transportation,
distance is no object. The middleman buys and sells the goods, easily
transported in lorries, cargo ships, planes and trains.
Price
“Price
is the key element in the marketing mix because it relates directly to the
generation of total revenue”. (Dibb et al, 2016, p.606)
Pricing
is a powerful tool in marketing. One pricing style used by many companies is
price skimming. They initially set the price high and then later lower the
prices throughout the year. Irn Bru’s pricing has been quite rigid with the only
increase due to competition from alternative brands, government taxation and
inflation. They can use tactics like special offers on products e.g. half price
sales to lure people in and entice them to want to purchase their product more
than any other one. Sales occur certain times of the year. Take for example:
Black Friday, Cyber Monday, Christmas Sales and January Sales which are great opportunist
times for companies to jump on the bandwagon and promote their product offering
discounted prices.
Irn Bru is advertising a super ‘knocked down’ price whilst incorporating win promotions like their Christmas Jumper and promoting their annual Carnival Event. |
The
marketing mix is an important tool that is used effectively by Barrs to achieve
a very successful product from the early 1900’s to date. Their use of the
marketing mix has allowed them to create a high quality product and a loyal
relationship with their customers.
Information on Irn Bru can be found on their website: https://www.irn-bru.co.uk/all/train
Enjoy the Bru!
Information on Irn Bru can be found on their website: https://www.irn-bru.co.uk/all/train
Enjoy the Bru!
References
BBC(2016) Irn Bru sales increase in Westminster following 2015 election [Online]. Available:http://www.bbc.co.uk/news/uk-scotland-38051933[Accessed 15 November 2016]
Cisneros H. (2015) Understanding the Difference Between Branding, Marketing and Advertising[Online].Available:http://www.sitepronews.com/2015/02/20/understanding-difference-branding-marketing-advertising/ [Accessed 15 November 2016]
Chand S. (2016) Types of Distribution: Intensive, Selective and Exclusive Distribution[Online]. Available:http://www.yourarticlelibrary.com/distribution/types-of-distribution-intensive-selective-and-exclusive-distribution/5780/[Accessed 16 November 2016]
Dawood S (2016)Fizzy drink Irn-Bru gets sparkling new branding and packaging design.[Online]. Available:https://www.designweek.co.uk/issues/2-8-may-2016/fizzy-drink-irn-bru-gets-sparkling-new-branding-and-packaging-design/ [Accessed 15 November 2016]
Dibb S., Simkin L., Pride M. W., and Ferrell, O.C. (2016) Marketing Concepts And Strategies. Seventh Ed. Hampshire: Cengage Learning EMEA, pp.4-606
Edward, M. T (1981)Brand franchise extension: New product benefits from existing Brand Names.Business Horizon,Vol.24(2)pp.36-41
Pride M. W and Ferrell O.C (2015) Foundations Of Marketing.Seventh Ed. Boston: Cengage Learning, p.358
Sadek H. H (2015)THE IMPACT OF MARKETING COMMUNICATION TOOLS ON BUILDING BRAND EQUITY IN THE EGYPTIAN BANKING SECTOR: A CUSTOMER PERSPECTIVE[Online]. Available:https://repository.cardiffmet.ac.uk/bitstream/handle/10369/7829/Sadek,%20H%20thesis.pdf?sequence=1 [Accessed 16 November 2016]
Pride M. W and Ferrell O.C (2015) Foundations Of Marketing.Seventh Ed. Boston: Cengage Learning, p.358
Sadek H. H (2015)THE IMPACT OF MARKETING COMMUNICATION TOOLS ON BUILDING BRAND EQUITY IN THE EGYPTIAN BANKING SECTOR: A CUSTOMER PERSPECTIVE[Online]. Available:https://repository.cardiffmet.ac.uk/bitstream/handle/10369/7829/Sadek,%20H%20thesis.pdf?sequence=1 [Accessed 16 November 2016]
Talking Retail (2009) IRN-BRU sponsors Rugby League[Online]. Available:http://www.talkingretail.com/category-news/industry-announcements/irn-bru-sponsors-rugby-league/[Accessed 16 November 2016]
The Drum (2016)AG Barr reveals Irn-Bru Xtra as part of its new marketing strategy following sugar tax[Online]. Available:http://www.thedrum.com/news/2016/07/24/ag-barr-reveals-irn-bru-xtra-part-its-new-marketing-strategy-following-sugar-tax[Accessed 15 November 2016]
The Telegraph(2015) The £6bn catch in loyalty points: the schemes sitting on your rewards[Online].Available:http://www.telegraph.co.uk/finance/personalfinance/money-saving-tips/11912823/Shoppers-waste-6bn-of-loyalty-reward-points.html [Accessed 17 November 2016]