Developing a marketing plan for Lemonhead
Chami Coomasaru
Presents a marketing plan
based on primary research,
which focuses on the pro-
posed launch of a new prod-
uct, Lemonhead, into the
existing alcoholic lemon drink
market. For this analysis, Two
Dogs (the current number two
in the sector) was selected as
the main competitor product.
Using the mix map model,
identifies by empirical
research short-falls regarding
the four Ps, which then
became the focus for attack
in the promotion of Lemon-
head. Shows the short-term
strategy of replacing the
current number two to be
successful in achieving the
long-term goal of becoming
the market leader.
Management Decision
34/8 [1996] 17–24
© MCB University Press
[ISSN 0021-1747]
Marketing Department, Carlsberg-Tetley
James Day, Spencer Lee
Sales Department, Carlsberg-Tetley
Introduction
This case study is in the form of a plan which
focuses on the proposed launch of a new prod-
uct, Lemonhead, into the existing alcoholic
lemon drink market. For the purpose of
analysis, Two Dogs (the current No. 2 in the
sector) was selected as a direct comparison
and a benchmark for improvement.
Currently, the entire alcoholic lemon drink or
“alcopop” sector is valued at £60 million and
growing by 20 per cent. (Market research
statistics, August/September 1995).
Our target market is predominantly “fun-
loving” 18-24 year olds. The two major objec-
tives of the case are to attack Two Dogs and
become No. 2 in the market within six months
and, once established, we want to then be
challenging for the market leader position
within 12 months.
To reinforce the need of a new product
launch, we approached our target market and
asked them what they wanted through a ques-
tionnaire survey. Our findings showed us that
there was a genuine need for Lemonhead and
indicated what variables had to be incorpo-
rated into the elements of the marketing mix:
• Product – high taste/high image.
• Price – high premium/high value.
• Promotion – high media/high
merchandising.
• Place – high pub and clubs/high retail.
It is apparent, from our analysis, that Two
Dogs is currently inconsistent within its
marketing strategy. Using the mix map model
and our empirical research we identified the
weaknesses of Two Dogs as being low on
taste, image, value, merchandising and media
promotion.
We will ultimately satisfy all needs of the
customer by launching a product with high
taste and high image. We plan to build the
brand image by advertising in cinemas, on
commercial radio and in specific magazine
publications. The image will be further
enhanced by sampling sessions in on-trade
and public locations, dual sponsorship at top
nightclubs and with Club 18-30, and money-
off vouchers incorporated in student welcome
packs; coupled with “wacky” packaging and
the strap line “Gives good lemon”.
Our “consistent” marketing strategy will
enable us to satisfy both our core objectives
and, more importantly, the requirements of
our target market. The launch of Lemonhead
will, in effect, turn Two Dogs into a dead dog.
Report
For the purpose of this case study we are
proposing to launch a product called Lemon-
head which is an alcoholic lemon drink. The
rationale for this case study has come about
due to initial secondary research which
shows that the alcoholic soft drink market, or
the hard soft drink market (products of which
are known as “alcopops”) is a high growth
sector. We have chosen to concentrate our
efforts on attacking Two Dogs with a competi-
tive marketing strategy.
According to the most recent market
research data (November/December 1995), for
the total UK off-trade, the total sales in litres
for the total lemonade market was 2.9 million.
Of this, Hooch enjoys 2.1 million litres and
Two Dogs has only 0.5 million litres. This
quite clearly establishes Hooch as the market
leader. From our secondary market research
we have found that there are 47 different
varieties of alcoholic soft drinks, coupled
with the fact that the sterling distribution for
the alcoholic lemonade market grew from 3
per cent in June/July 1995 to 20 per cent in
August/September, compared with only a 22
per cent increase for premium packaged
lager (PPL) over a period of 12 months (mar-
ket research statistics). The alcopop market is
currently valued at £60 million and is a grow-
ing sector. This quite clearly shows that this
product category is buoyant and an ideal
prospect for a new product to be launched.
Although Carlsberg-Tetley (C-T) has a
broad portfolio of products, we are currently
under-represented within this market with
our own product. Therefore it is essential that
we develop a product to fuse two different
identities and create a personality. This can
be easily seen by examining our position on
the Ansoff matrix depicted in Figure 1.
You can see from the above matrix that C-T
needs to develop its own product and target it
to an existing market. From this we will be
[ 17 ]
Chami Coomasaru, James Day
and Spencer Lee
Developing a marketing plan
for Lemonhead
Management Decision
34/8 [1996] 17–24
[ 18 ]
Figure 1
The Ansoff matrix
Markets
Existing New
Alcopop Alcopop
Existing
market market
penetration development
plans plans
Products
or services
Lemonhead Total
New development diversification
plans plans
Source: Adapted from [1]
able to use existing market knowledge and
statistical analysis to identify key areas
where an improved hybrid can evolve and a
personality can be born.
Our target market is predominantly “fun-
loving” 18-24 year olds[2]. Our objectives are
to:
• attack Two Dogs and become No. 2 in the
market within six months;
• once established as the clear No. 2, we want
to then be challenging for the market leader
position within 12 months of launch.
We will achieve these objectives through our
marketing plan.
Marketing overview
Within the UK beer market there are a num-
ber of separate segments. For the purpose of
this case study it has been necessary to sepa-
rate these into three different categories:
1 Standard packaged (beer/lager).
2 Premium packaged (beer/lager).
3 Alcoholic soft drinks (alcopops).
We will focus wholly on the “packaged
market”. This consists of all alcoholic prod-
ucts in the sector which are sold in bottles/
cans.
Our concentration is on the alcopop
market. This is the fastest growing market in
the on-trade sector (market research statis-
tics January/February 1996). It consists pre-
dominantly of fruit-flavoured drinks, e.g.
lemon flavour, blackcurrant, tropical, as well
as colas and ciders. These typically contain
alcohol from between 4 per cent – 7.5 per cent
(premium strengths).
The market originated from the demands of
the 18-24 year-old male market who were
unhappy to drink “high gas” lager products
and were looking for a macho, healthy alter-
native to beer. The interest in these smoother
products was initially raised through the
introduction of the smoother “ice beers” and
developed from there.
The market is mainly focused on the lemon
segment. The first product to be launched in
to this market was Two Dogs, which is dis-
tributed/owned by Merrydown. This was
closely followed by Hoopers Hooch, owned by
Bass and launched with a great deal of promo-
tion and publicity (for launch details see
Boston matrix).
Currently the entire alcoholic lemon sector
is valued at £60 million (market research
statistics). In June/July 1995 the market grew
by 3 per cent. Then, in August/September, by
a staggering 20 per cent.
The clear market leader is Hoopers Hooch
with 75 per cent of the market, followed by
Two Dogs with only 17 per cent.
Volume sales from June 1995 to January
1996 were as shown in Table I.
Currently, the entire alcoholic lemon
market accounts for 3 per cent of the total on
trade packaged market. That is 7.5 million
litres sold in six months. There is therefore a
genuine demand for the products. We have
therefore set out to identify an opportunity to
exploit this market potential through the
development of a new, enhanced product, one
with a personality and attitude (refer to
Brand Personality).
Methodology
To determine the specific needs or require-
ments of our target market we formulated a
quantitative questionnaire, as discussed by
Jankowicz[3]. The results from our random
sample of 60 forms the basis of our axis
during the mix-mapping analysis of the pro-
posed marketing mix and more importantly
suggests there is a genuine consumer need for
our product. A full summary of results from
our primary market research, coupled with a
sample questionnaire, are documented in
Appendix 1. Secondary research sources stem
from current market research statistics
reports on the total beer market, relevant
trade press and marketing departments.
Table I
Volume sales (June 1995 to January 1996)
Litres purchases
Hooch Two Dogs
June/July 272,000 34,300
August/September 1,030,000 606,700
October/November 1,830,000 697,400
December/January 1,900,00 950,000
Source: Market research bi-monthly reports
Chami Coomasaru, James Day
and Spencer Lee
Developing a marketing plan
for Lemonhead
Management Decision
34/8 [1996] 17–24
The marketing plan
To identify our more important objectives
and targets we must successfully co-ordinate
the different elements and their variables of
the marketing mix – i.e. where should we
promote Lemonhead? And should we sell the
product at a premium price?
The following plan is based on the mix map
model established by Vignali[4]. Our strategy
stems from in-depth analysis of the Boston
Group matrix (BCG) and the concept of the
product life cycle (PLC), while our tactics, or
how we are going to achieve our goal, are
determined from practical application of the
mix map model. Both our proposed strategy
and tactics are underpinned by our empirical
research.
Empirical research
As discussed within the methodology, to
determine exactly what the consumer wants
from our product we approached our target
audience through the medium of a question-
naire. The random sample was 60 and was
administered during two peak lunch-time
hours. The major findings from our case
study surround the four main elements of the
marketing mix and are depicted graphically
in Appendix 1. The axis of our mix-mapping
analysis, as suggested by McCarthy[5], are
determined by the top two variables of each
mix element, i.e. product, place, promotion
and price. It enables us to critically examine
the current marketing strategy of Two Dogs,
identify the weaknesses and thus formulate
our own improved/consistent market entry
strategy which satisfies the needs of our
target market.
The product life cycle (PLC)
From our research and the volume figures
gathered since the launch of Two Dogs (TD),
we are able to monitor the growth of TD tak-
ing into account its initial introduction, then
the drop in sales once Hooch was launched,
then its second life when Hooch suffered from
distribution problems. It then becomes evi-
dent that TD enjoyed a relatively rapid
growth in sales and distribution for much of
the summer of 1995. This, however, reached a
peak in late July 1995 when Hooch began to
claw back the market share it originally com-
manded. TD has since then been on a steady
decline and has been unable to recover owing
to Hooch’s market share. We are now able to
plot a line joining these periodic figures (see
Figure 2). This line is known as the product
life cycle (PLC), as suggested by Kotler[6]; it
Figure 2
Product life cycle analysis for Lemonhead and
Two Dogs
Sales
Lemonhead
Two Dogs Cash cow
Star
Problem child Dog
Introduction
Growth
Maturity
Saturation
Decline
Time
shows how a product, once introduced (prob-
lem child/question mark), can, in normal
market conditions, enjoy a steady growth
(star) rising to maturity and finally peaking
at its saturation point (cash cow) where
demand/external factors begin to affect its
sales and subsequently the product can spiral
into decline (dog) unless the product is reju-
venated. The PLC below indicates the current
position of Two Dogs and the position we
want to achieve with Lemonhead.
The Boston Group matrix
To monitor our overall situation closely, the
most efficient method of doing this, particu-
larly when launching new products, is use of
the Boston Group matrix. The Boston matrix
suggests that there are four main product
groupings within a matrix, market growth
against market share. Through secondary
research and our own market knowledge, we
have been able to conclude that Two Dogs is
currently a “Problem child/question mark”
(low market share in a high growth market).
Initially, Two Dogs enjoyed high market share
in a high growth market. However, Merry-
down, the owners of Two Dogs, did not clearly
have an identified market strategy. Money
was not available to support the product
launch to create an awareness in a new
market. Bass then identified an opportunity
to manipulate their lack of strategy and
launched their product, Hooch, with a high
amount of cash and distribution. They were
therefore able to create a rapid rising star. It
is important to note however that, although
Bass had a clear market strategy, it did not
anticipate the initial demand for its product
and subsequently suffered from distribu-
tion/supply problems following the initial
hype. Two Dogs was, at this time, then able to
enjoy increased sales on the back of Bass’s
marketing support. This, however, was
[ 19 ]
Chami Coomasaru, James Day
and Spencer Lee
Developing a marketing plan
for Lemonhead
Management Decision
34/8 [1996] 17–24
[ 20 ]
temporary as Hooch was already established
as the brand leader that everyone preferred.
Seizing the opportunity
From this, we were able to identify the oppor-
tunity of replacing a competitor’s product
distribution with one of our own core prod-
ucts. As mentioned, initially, Two Dogs was
able to benefit from Bass’s initial problems by
targeting its market and benefiting from its
initial established distribution channels. We,
at C-T are able to repeat this as currently we
enjoy a distribution agreement with it as we
do not currently have an alcoholic lemon
drink of our own. Once we launch, we can
then substitute Two Dogs with our own prod-
uct, as well as distribute it in our own theme
pubs. This will have a two-pronged effect. It
will initially allow us to target our market to
certain segments, thus gaining awareness
and distribution, as well as replacing Two
Dogs distribution with our Lemonhead prod-
uct. This, ultimately, will gain us market
share, enabling us to achieve our first objec-
tive; thus reducing Two Dogs to a “dog” sta-
tus. The BCG matrix in Figure 3 shows the
position of Two Dogs and where we want
Lemonhead to be positioned, the two loca-
tions are consistent with the PLC.
The mix map model – the tactic
The selected variables of the marketing mix,
determined from our empirical research, now
become the high/low axis during application
of the mix map model.
It is apparent from Figure 4 that Two Dogs
is currently in a “mismatch” situation – i.e.
its PLC and BCG positioning is not being
adhered to tactically which, in effect, is
resulting in a contradictory message to the
customer and thus reflecting their current
market position.
Figure 3
Boston Group matrix
Stars Problem child
(Question mark)
Lemonhead Two Dogs
Growth
Cash cow Dog
Relative market share
Source: Boston Consultancy Group (1971)
To satisfy our strategic aim and the genuine
needs of the customer, according to the find-
ings of our questionnaire, we are tactically
going to pitch ourselves in the high/high
locality of each matrix, as this is the desire of
our target market. This remains constant
with our positioning within our PLC and
BCG.
Strategy implementation
The mix map model identified the weak-
nesses of the current Two Dogs strategy and
highlighted the aim for consistency. To
improve on Two Dogs and realize the goal C-T
must enter the market with the following
marketing strategy.
Above-the-line support
The majority of C-T’s strategy comes from
above-the-line support:
• Cinema advertising. We can target specific
local catchment areas and avoid TV
regional advertising restrictions which
become less effective owing to wider/
irrelevant viewing area. It is also more
politically correct because it avoids the
arena of advertising to children and the
more recent voluntary regulation through
Porters Drinking Consortium by major
brewers[7]. With cinema advertisements
you can choose which films appeal to the
target market (Trainspotting/ Seven/Leav-
ing Las Vegas) and our empirical research
has shown that the target audience, 18-24
year olds, frequent the big screen and are
susceptible to cinema advertising (see
Question 7, Appendix 1).
• Radio advertising. This medium is very cost
effective and the target audience is reached
efficiently. In Manchester, our research
identified that Kiss 102 was the most popu-
lar commercial station. We could couple
our ad slots with link promotions with the
station – i.e. competitions – and exploit
their involvement with club-night sponsor-
ship with tie-in activity (see Question 8,
Appendix 1).
• Magazine advertising. Our target market,
generated from our research, mostly read
Sky, Loaded and Viz. It is therefore impera-
tive that we develop our brand image
through these channels – i.e. offer a free
case of Lemonhead to the first 50 new sub-
scribers to each magazine (see Question 9,
Appendix 1).
• Sampling. To encourage brand loyalty we
plan to do tasting sessions of Lemonhead.
There are a wider number of locations to
choose from – including train stations,
pubs, clubs, student bars, retail outlets and
theme bars (see Question 1, Appendix 1).
Chami Coomasaru, James Day Figure 4
and Spencer Lee Application of the mix map model to Two Dogs and Lemonhead
Developing a marketing plan
for Lemonhead Two dogs
Management Decision Product Price Promotion Place
34/8 [1996] 17–24 High High High High

Pubs/clubs
Premium

Media
Taste

Low Low Low Low

High Low High Low High Low High Low
Image Value Merchandising Retail

Lemonhead
Product Price Promotion Place
High High High High

Pubs/clubs
Premium

Media
Taste

Low Low Low Low

High Low High Low High Low High Low
Image Value Merchandising Retail

• Brand personality. We are going to give the
image or personality of the product a huge
boost with strong packaging and a strap
line aimed specifically at our target market.
The “barking mad” bottle will be yellow,
depicting a bespectacled bloke with a lemon
as his head and the phrase “Gives good
lemon” as the strap-line, generating a prod-
uct with a strong image and therefore will
build a strong brand name in the long term.
• Student welcome packs. One of the major
segments within our target market are
students. We plan to exploit this segment
through links with inclusion in welcome
packs to students in their fresher year with
perhaps a voucher for budding students to
redeem at, as an example Victoria Wine –
an explosive link promotion.
• Brand extension. The current trend is to
have variants of the same product, i.e.
blackcurrant/orange flavours, etc. It is our
belief that this is not a successful path,
rather it is necessary to build personality
for the brand – for example, linking Lemon-
head with a venture like Club 18-30; or spon-
soring reunion parties, incorporating the
logo within the uniforms, thereby linking
the two identities to create a personality.
• A better taste: A variable which surrounds
all the above is our emphasis on the better
taste of Lemonhead. As taste was identified
as the main attribute by our target market
we will use this factor in our promotional
campaign: “There is a whole lemon in a
bottle” (see Question 5, Appendix 1).
Below-the-line support
We propose high intensity sales drives. We
envisage having a team of dedicated
merchandisers and event organizers for pro-
motional activities sites such as pubs and
clubs.
Conclusion
We have identified, through this market plan,
that there is a genuine demand for the launch
of Lemonhead into the existing alcoholic
lemon drink market. Utilizing the informa-
tion gathered from our empirical research, we
have produced a product which satisfies that
need. Our strategy for launch and growth is
based on our target market’s requirements
and a more long-term view is, after initial
entry into the market, we will gain a No. 2
position within six months and will realisti-
cally challenge the brand leader within 12
months of the launch. This is all possible
because we are consistently satisfying the
needs and wants of our consumer across all
elements of the marketing mix. Our objectives
have therefore been realized and we will ulti-
mately change Two Dogs from being a ques-
tion mark to becoming a “dead” dog.
References
1 Ansoff, H.I., The New Corporate Strategy, John
Wiley, New York, NY, 1988.
2 Jones, D. (Ed.), “Report on UK drinks market
1995”, Market Review, 8th ed., Key Note Publi-
cations, Hampton, 1995.
3 Jankowicz, A.D., Business Research Projects,
Chapman & Hall, London, 1995.
4 Vignali, C. and Davies, B., “The marketing mix
redefined and mapped: introducing the mix
map model”, Management Decision, Vol. 32
No. 8, 1994, pp. 11-16.

[ 21 ]
Chami Coomasaru, James Day 5 McCarthy, J., Basic Marketing, Irvine, 1974. Hutchings, P., Marketing: A Resource Book,
and Spencer Lee 6 Kotler, P., Marketing Management: Analysis, Pitman, London, 1995, Ch. 6-11.
Developing a marketing plan Planning & Control, Prentice-Hall, Englewood Kotler, P., Principles of Marketing, Prentice-Hall,
for Lemonhead Cliffs, NJ, 1988. Englewood Cliffs, NJ, 1983.
Management Decision 7 Guthrie, S., “Leader”, Off Licence News,
Vignali, C. and Schmeling, B., The MixMap –
34/8 [1996] 17–24 14 January 1996.
Model for Sport Sponsorship, Manchester
Metropolitan University, Manchester,
Further reading
Baker, M.J., Marketing, Macmillan, London, 1981. 1994.
Dibb, S., Simkin, L., Pride, W.M. and Ferrell, O.C., Wilson, Gilligan and Pearson, Strategic Marketing
Marketing: Concepts & Strategies, Houghton Management, Butterworth-Heinemann,
Mifflin, Boston, MA, 1994. Oxford, 1995, pp. 223-39.

Appendix 1. Sample alcopop questionnaire

1 What sort of licensed premises do you frequent?
n Traditional pub n Wine bar
n Fun pub n Student bar
n Club Other ....................

2 Are you aware of the alcoholic lemon drink market? YES/NO

IF YES, can you name three brands?
1...........................................
2...........................................
3...........................................

3 If you drink them which is your preference and why?

n ..........................................................................................................................

4 What price are you normally prepared to pay?

Do you think that this is:
a) Cheap b) Value c) Premium

5 What do you think are the most important two attributes?

a) Product brand b) Price c) Taste
d) Promotions

6 Where have you seen media advertisements for alcopop brands?

.........................................................................................................................

7 How often do you go to the cinema?

a) Once a week b) Once a month
c) Less than once a month d) Other

8 Which commercial radio station do you listen to?

a) Key 103 b) Kiss 102 c) Other.......................

9 Which of these magazines do you read?

a) Tatler b) Loaded c) Q Mag
d) GQ/FHM e) Viz f) Sky
e) Other.............................

[ 22 ]
Chami Coomasaru, James Day Appendix 2. Results of questionnaire
and Spencer Lee
Developing a marketing plan
for Lemonhead Figure A1
What sort of licensed premises do you frequent?
Management Decision
34/8 [1996] 17–24 Frequency of visit
60
50
40
30
20
10
0
Traditional Fun pub Club Wine bar Student Other
pub bar
Type of outlet

Figure A2
Are you aware of the alcoholic drink market?
No 4 Number recalled
70
60 51
50
40
29
30
20 11
10
Yes 56 0
Hooch Two Dogs Others
a Yes/no Named brands
b If yes,can you name three brands?

Figure A3
If you drink them which is your preference and
why?

Two Dogs
23.5 per cent

Hooch Others
52.9 per cent 23.5 per cent

Figure A4
What price are you normally prepared to pay
and do you think that £1.60-£2.20 (on trade)
and up to £1 (off trade) is cheap, value or pre-
mium?
Number of responses
50
40
33
30
20 15
10 5

0
Cheap Value Premium
Perception of price
[ 23 ]
Chami Coomasaru, James Day Figure A5
and Spencer Lee What do you think are the most important two attributes?
Developing a marketing plan
for Lemonhead
Image
Management Decision 30.4 per cent
34/8 [1996] 17–24

Taste
69.6 per cent

Figure A6
Where have you seen media advertisements for alcopop brands?

Number of times seen

50

40 39
34

30
21
20 17
14
10
10

0
Bus Bus Magazines Bills Pubs General
stops media
Media

Figure A7 Figure A8
How often do you go to the cinema? Which commercial radio station do you listen to?
25 30
20 25
15
20
10
15
5
10
0
Once a Once a Less than Other 5
week month once a
month 0
Key 103 Kiss 102 Other
Figure A9
Which of these magazines do you read?
25

20 19

16
15 14

11 11
10
8

5
5

0
Tatler Loaded Q Mag GQ/FHM Viz Sky Other
[ 24 ]