After publishing our reference article on the marketing mix, we propose a detailed analysis following the 7Ps model.
We propose to analyze the marketing mix of the latest product from the Alain Milliat brand: an iced tea marketed under the “am alain milliat” label, which we discussed in our article on marketing positioning.
Marketing mix analysis
- P1 : Product
- P2 : Price
- P3 : Promotion
- P4 : Place
- P5 : People
- P6 : Process
- P7 : Physical Evidence
Alain Milliat is a French entrepreneur who has created an eponymous fruit juice brand. These juices are marketed as “tasting juices” and are sold to more than 90% in hotels, restaurants, and delicatessens. The B2C part represents only a few percent.
Tasting juices are 100% pure juice or nectars. They are the best of what exists in terms of taste quality. On this quality, Alain Milliat has built his reputation and has been able to develop worldwide.
The juices are produced in the factory in Valence (France), and the raw materials are sourced from all over the world (to learn more, watch this video). Only the best fruits can be used in the composition of the juices. When the fruits are not of sufficient quality, the corresponding juice is not produced.
In 2021 Alain Milliat launched a new product: iced infusions.
The P in “Product” (Product Policy)
“am alain milliat” is a drink composed of 2 fruits, an infused plant, and water. This drink is positioned under the term iced infusion. Its composition makes it a very different product from what is currently on the market.
The product is also clearly different from the rest of the range by its composition and organic label. To make a clear distinction in the range, the Alain Milliat iced infusion adopts a different graphic code than the rest of the range, which is materialized by another label (see photo above).
Nevertheless, using the name “alain milliat” in the product name adds a certain amount of branding confusion. The reuse of the same codes accentuates this confusion at the level of packaging: the same bottle shape, same materials, same cap, same protective band. Only the format of the bottle changes, as it is a 25 cl format, whereas the rest of the range only exists in 33 cl and 100 cl.
The P in “Price” (Pricing Policy)
The price positioning is evident. Alain Milliat’s ice infusions are supposed to be less expensive (about €3 for 25 cl) than traditional juices and nectars, which can cost more than €6. The infusions would thus offer a more comprehensive coverage allowing to reach new segments of customers.
Nevertheless, we notice that some products of the classic range (apricot, apple, pear) are at the same price. Worse, being sold in 33 cl packaging, they are cheaper than iced teas. So there is a concern in terms of pricing.
The large packaging for classic juices (100 cl and 300 cl bag-in-box) adds to the confusion. For the largest container, the price per bottle is only 1.72€, i.e., 40% less than for a bottle of iced tea.
We conclude that the price positioning of iced teas is, in fact, insufficiently differentiated. The pricing strategy is undoubtedly “revenue-oriented” (maximizing margins). Still, the pricing would have required tests to avoid possible confusion with the juices and nectars that have made the reputation of Alain Milliat.
The P of “Promotion” (Communication Policy)
Iced teas do not benefit from advertising campaigns. To our knowledge, no specific communication towards the final consumer has been carried out.
However, the Alain Milliat brand has a strong presence at trade shows such as SIAL.
The P of “Place” (Distribution Policy)
The distribution of Alain Milliat iced teas differs from that of traditional juices. Distribution is done through 260 Monoprix stores throughout France, while the rest of the range is distributed mainly in B2B (hotels, restaurants) and B2C through high-end grocery stores.
The P of “People” (Relationship policy)
The human aspect is, in fact, absent. The founder, Alain Milliat, remains very present at trade shows where he embodies the brand he created. Apart from that, there is no interaction between consumers and the brand’s employees, nor are there any customer meeting places.
The P of “Process” (the processes related to the service)
In the field of FMCG (Fast-Moving Consumer Goods), the “service” aspects are pretty limited since the distribution is carried out in other locations (primarily supermarkets). This is the case for iced teas. The processes around the service component are, therefore, little developed.
The P in “Physical evidence”
The “physical evidence” part of the marketing mix is reasonably easy to address since iced teas are only distributed through third-party distributors. The “physical” aspects will therefore vary from one sales outlet to another.
As far as customer reviews or other forms of argumentation around the product are concerned, there are simply none at this stage on the Alain Milliat website. However, some (very positive) reviews can be found on third-party websites.
Posted in Marketing.