Special Group, a company involved in the production and distribution of water and carbonated drinks has
recently decided to venture into the transportation business. As the marketing executive tasked with the
responsibility of overseeing the planning and execution of this new venture, explain to the management of
Special Group how the transport business differs from the drinks business in relation to its characteristics,
detailing what unique marketing strategies and marketing mix decisions shall be adopted in ensuring its succes
A transport business uses any vehicles to transport one item or person from one place to another. The transportation sector consists of several industries including air freight and logistics, airlines, marine, road and rail, and transportation infrastructure. A drink business is a place/product (drinks) you sell to make a profit
In the drinks business, prices are determined by the size of the drink e.g. Rs 25 for 300 ML While in the transport business prices are depending on the time and distance model i.e How much time the carrier takes to deliver the consignment and how much distance it has to travel to reach the destination.
There are two types of drinks; carbonated water and water; carbonated water for refreshing and mineral water for cooking purposes. While transport can be used to deliver the drinks, their own transportation/logistics can be used across the nation. This would mean integration of the drinks and the transport businesses.
The special group caters to a specific part of the country, this gives the competitors serious competition due to their less reachability. The transport business will help the special group move their produced water and drinks to different parts of the country.
They offer discounts on their products depending on what they want to promote. In the transport business, they can promote the business by offering home delivery and price discounts.