UWS Marketing Mix Blog

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.

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). 

The typical Product Life Cycle is shown

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.

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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!

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]

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]