Text: Better Business



Video Title: Jones Soda: Marketing & Consumer Behavior

Length: 7:09

Classroom Application: Instructors will find this video helpful in the study of marketing strategies including the four Ps of the marketing mix. According to the text, marketing is one of the most visible functions of any organization. Therefore, students should have a thorough understanding of marketing processes and functions.

Synopsis

Jones Soda Co. is known for their wild beverage flavors and for their successful word-of-mouth marketing campaigns. For many years, they focused on a specific target market, the young, hip, counter culture, and refused to compete head-to-head with the soft drink giants. In their efforts to expand the brand, Jones made mistakes and cost the company millions of dollars. Jones now is using a retrenchment strategy and is marketing bottled beverages to its loyal customer base.

Discussion Questions

1. Describe Jones Soda’s original market. How were they targeted?

Jones Soda’s original market was a young, hip demographic that were viewed as part of the counterculture. Van Stolk sold to this market of consumers by going where they hung out. Jones Soda was sold one bottle at a time at skateboard shops, comic book stores, and tattoo parlors. There was no traditional marketing. Two recreational vehicles were sent to skate parks and high schools, giving away free soda to create brand recognition.

2. Use the four Ps to explain Jones Soda’s original marketing strategy.

With the four Ps, the idea is to provide the product that customers need and want at an appropriate price and promote its sale and place or distribute the good or the service in a convenient location for the customer to purchase▼. Jones Soda created a unique, quirky product, promoted it by developing a relationship with customers who spread word of the product, distributed by bringing the product to customers, and actually sold the product at an elevated price based on an idea of uniqueness or originality not possessed by competitors. The four Ps of the marketing mix were originally well blended to best meet the needs of the target market.

3. How did the marketing environment impact the attempted mainstream rollout of Jones Soda?

According to the text, the marketing environment includes environmental influences beyond a firm’s control that constrain the organization’s ability to manipulate its marketing mix including the competitive, economic, technological, and sociocultural environments as well as the political, legal, and regulatory environments. The primary factors impacting the mainstream rollout of Jones Soda were competitive, economic, and sociocultural environments.

First, Jones Soda was unsuccessful in their attempt to go mainstream because of their inability to compete head to head with Coke and Pepsi. Secondly, there was a significant economic downturn that occurred simultaneously with the rollout. Finally, faulty market research led Jones to believe that their product would gain the same cult following with mainstream buyers as it had with the original demographic. This was not true. The counterculture of the original target market was a good fit with the quirky nature of Jones Soda.

Quiz

1. Which of the historical marketing concepts best describes the original marketing strategy of Jones Soda?

a. production concept

b. sales concept

c. marketing concept

d. customer relationship

Answer: d

Explanation: During the customer relationship era, organizations have worked to establish long-term relationships with individual customers to foster loyalty and repeat business. In its first 10 years of operation, Jones Soda had an intimate relationship with its customers. Customer photos adorned Jones Soda bottles and customers could even upload their own photos on the Jones website and request a case of soda be shipped to their home displaying their photos on the bottles.

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