A traditional family drinks firm has been developing slowly and built up a strong reputation, but control has now passed to the next generation and they want to look at possible expansion for the firm. The new marketing director made the following statement:

'We have a strong family image and our products are trusted, but we are considering changing our production strategy. We have normally just produced theflavouringand let others bottle it and take the risks of selling to the public. After considerable market research we have decided to launch our own brand of soft drinks. Initially, these will be: a colaflavour, lemonade and ginger beer. If these are successful then others are planned.'

1- Explain the marketing importance of 'a strong family image'.

2- Outline the market research the company is likely to have undertaken.

3- Analysesthe advantages and disadvantages of the drinks firm introduce their brands with a penetration pricing policy.

4- Discuss potential changes in the marketing mix that this new strategy will involve and comment on their significance.