Question 21

Jo is considering buying a bottle of water enhancer for the family. Describe two internal, two external, and two situational influences which may affect Jo's purchase decision.

Question 22

The marketing research process typically involves six steps. Describe each of these steps, explaining how Schweppes might have used these steps prior to launching their new product.

Question 23

Using Smith and Colgate's (2007) framework, explain and illustrate the four types of customer value relevant to LQD+ consumers.

Question 24

Describe the various types of stakeholders in Schweppes' microenvironment. Using the case study, illustrate how each of the stakeholders in the microenvironment might affect Schweppes' ability to serve their customers.

Question 25

Considering ethical and legal issues in marketing, briefly describe three marketing practices that Schweppes should avoid.

Information

The remaining questions in this exam relate to the following scenario. You are required to make reference to this scenario when answering questions 21-25.

Scenario - Schweppes Water Enhancers

Adapted from Roper, P. (2014)."Schweppes is testing the water enhancer category with two distinct brands."Marketing Magazine. https://www.marketingmag.com.au/hubsc/schweppesistestingthewaterenhancercategorywithtwodistinctbrands/

Schweppes Australia is testing two new brands, Squirt and LQD+, in parallel to jump-start the 'water enhancer' market in Australia, following the category's quick rise in the US

Liquid water enhancers are a new proposition for the Australian market - they're, simply, concentrated flavours that are squirted into water to make water more 'interesting'. The category was born in 2011 when Kraft introduced MiO Liquid Water Enhancers to the US. By the end of last year, the market there had reached US$412 million, according to specialist food and beverage consultancy Zenith International. The products come in a pocket-sized format and allow consumers to customise their drinks on the go by adding flavour to water whenever they want.

The trial by Schweppes Australia started last year in South Australia, offering a range of three flavours across two distinct brands. The first is a sub-brand, named 'Squirt', which comprises a product range under the existing Cottees brand. The second is an all-new brand named 'LQD+'.

The two new ranges are designed to appeal to distinct

audiences. The playful look of Cottees Squirt builds on key

assets of the rebrand Cottee's undertook earlier this year in order to appeal to modern families. The "bold and attitudinal" brand development of LQD+ focuses on independent adult consumers, positioning the product as a lifestyle accessory.

Ellie Vince, head of innovation at Schweppes Australia, tells Marketing that several key consumer trends make this the right time to launch in Australia. "For health reasons, there's a big trend towards consuming more bottled water, but the major barrier to consuming more bottled water is that water is seen as boring and uninteresting," Vince says. "[Also] there's this emerging trend coming through around people wanting to have control over everything they do, from their mobile phones to customising the shoes they wear or the playlists they listen to." Another trend playing a role here is the valuing of environmentally-friendly consumption. "For every person that reuses their bottle of water, it's three times, so it absolutely taps into that," Vince says. "Plus also we know it's quite a high percentage of drinks that people drink each day is tap water."

We asked Vince the rationale between the two new brands, Cottee's Squirt and LQD+. One reason is simply due to the pack size of the product itself. The bottles are small, so to get a substantial amount of presence and visibility on shelf, a certain breadth and variance is needed for it to be noticed.

But the main reason behind launching two brands was insight

around Cottee's as a brand, says Vince: "Its main consumer

base is families. We know that people try to take Cottee's out of the home by pre-mixing up big jugs of cordial, but the format's not really conducive to moving out and about. There's definitely an opportunity for us to allow people to enjoy Cottee's style of cordial out and about, so it felt like anatural fit to extend the Cottee's brand into a smaller and more convenient format," she says.

"Everything about [the water enhancer category] is new, so it's nice to keep one thing consistent - people understand the Cottee's brand, people are familiar with it, it's got credibility. Keeping one thing consistent is really valuable for us."

Cottee's Squirt and LQD+ are initially being distributed in supermarkets Woolworths and Coles, and in convenience stores.