Introduction to Nexba
Discuss about the Advertising Of Food & Beverage Product To Children.
Nexba is an Australian company that is specialized in producing beverages that ready to drink. The company was established in the year 2010 by Troy Douglas and Bilbe. The company produces anti-sugar soft drinks that has helped to create a significant position for the company in the market. The company had started their business with the innovative idea of launching naturally sugar free soft drinks for the first time in the country. Nexas have prospered in their innovative and creative thought and presently they are available in stores nationwide in Coles with a range of cola, lemon and orange flavours. They have been a tough competition to the leading beverage brands like Coca-Cola and Pepsi in the market. The brand has stolen the customers from the leading refreshment drinks brands like Nestea and Lipton with its favoured iced teas. The brand, Nexas is creating a huge change in the beverage market and is expanding their business scale to a varied range (de Ruyter et al., 2013). The study will focus about the situation analysis of the company and will discuss about the objective of the company. It will also detail the marketing mix and strategy of the company and along with the implementation and control measures.
The company is using Erythritol a natural sweetener product to create the taste of sugar in the beverages produced by them. They are not using the natural sugar but the taste remains identical. This is the first company who came up with this approach and thus attracted huge scale of customers from all across the nation (Hu, 2013). The most important factor for this company is that there strategy to use the artificial sweetener in their product. According to studies it is seen that one of the major problem of health is consumption of the sugary soft drinks that contains a huge scale of calories. This is a direct threat to the patients suffering from and might suffer from diabetes, cardiovascular disease, obesity. However, Nexas has introduced the product of sugar free drinks with the taste of sugar in it and has taken over the market in a short span of time.
The major problem that the company will face or the company is facing presently is a huge competition with the already established brands like Coca cola who have launched zero-calorie drinks that is also following the same strategy just like Nexas. To define in a detail manner it can be said that a company like Nexas has come up with an innovative and creative thinking of producing sugar free products for the beverage industry. The company has received a huge scope for expansion and has also already reached the market in an effective manner. It has expanded the business all over the nation in a short span of time. The company has become a threat to the leading beverage brands like Pepsi and Coca –Cola. However, these brands are also giving a tough competition to Nexas as they are also launching products that has very less or zero calorie in it. The company has to improve their marketing strategy and innovative skills to overlap the leading brands and maintain their position in the market. If the company is not taking any steps recover this threat then they might lose their position in the market as the brands like Coca –Cola and Nestea has a leading fame in the beverage industry since a long time and it is difficult to compete with them without proper strategy and skills (DeBoer, Scharf & Demmer, 2013).
The Problem Nexba Solves
Demographic: The consumer for this product will be of middle aged and older age group. This section of consumers are having high chances to suffer from typical diseases where the consumption has to be limited in various ways. The consumer section who are concerned about their health, figure will also get attracted to this product.
Psychographic: The consumers who are conscious about their health and desire to consume sugar free products will get attracted to this product (Malik & Hu, 2015). The consumers who are also threatened by diseases like diabetes can also consume this product. This product will attract consumers who do prefer to drink soft drinks but could not drink it because of sugar contains.
Behavioural: The consumer who are conscious about their health and also desire to consume soft drinks will select this product.
Geographic: Countries that are highly conscious about the health and fitness will be the target market of this company. The countries or areas that are sports oriented and health oriented and also desires to stay fit and healthy will prefer this product. The people staying in regions near the equator requires more soft drinks or energy drinks as the weather is very hot and dry in such areas. This product will be ideal for such consumers.
The target market for this product are the countries that requires more soft drinks as the temperature is extremely high in such regions. Countries near the equator requires more energy rinks or soft drinks and thus if the product is providing the consumer with the privilege of sugar free drinks then they will accept the product readily. The company will be readily accepted in the countries where the community has a high range members suffering from diseases like, cardio vascular disease, diabetes, cholesterol. The patients were not able to consume the beverage due to the sugar contain in them. However, once this product was introduced to the market the company would get a higher scope of expansion from every corner of the world. Thus the company should target the regions near the equator or the nations that has a high temperature rise in summer (Galbraith?Emami & Lobstein, 2013). The product will be ideal for countries were the maximum consumers are health conscious and concerned about their fitness. The company will incur a huge profit from such regions.
- Young generation: The group of young generation who have the fascination for staying fit and healthy and are also interested to participate in sports must keep themselves healthy and consume product that are containing less amount of calories and sugar.
- Middle aged group: This generation is interested in keeping themselves healthy so that they can avoid diseases like diabetes, cardio related diseases. They are health conscious and concerned to stay healthy and fit. Thus they prefer this sugar free beverage.
- Old generation: this generation is already suffering from the typical diseases that strictly disallows the intake of calorie contained food and beverages. Thus they would not consumer beverages that contains sugar and would readily accept the sugar free drink of Nexas.
The company had initiated the process of producing soft drinks using the natural ingredients with low fat products. They knew they had a good concept and with that they decided to implement the plan in the business strategy. Their idea soon hiked in the market and reached a certain level that was beyond the expectation of everyone. The company targets to make the brand to stand by the competing and leading beverage brands in the market. Their distinctive branding at the point of sale was effective and the media campaigns were also successful. The campaign was successful. They used cloud technology to track the consumers and sales of the company. The marketing goal of the company is to reach the customers who are concerned about the health drinks that is harmless to them. The need for health drink has increased in the society however, the sugar contains in the drinks are making them harmful to consumers who are suffering from diseases like diabetes, heart diseases.
Nexba's Unique Selling Proposition
The company is introducing campaigns that are spreading awareness about sugar contained drinks and their side effects. They are informing the consumers the possible risks about the intake of sugar contained drinks. They are informing the consumer about the risk of consuming such beverages.
The company can focus on developing nations and inform them about the need of staying healthy and fit in their life. They can conduct the awareness program in such countries where the consumers are not aware of the importance of staying healthy. They can be informed about the importance of staying healthy in their life.
They can target the international market. The strategy of the company can be to explore the need of being healthy to the consumers in international market (Varadarajan, 2015). It is already seen that the zero coke or zero calorie diet drinks are getting a high approach from the consumers and the company can use this demand for improving their position in the market.
They can use social media to reach the consumer in the international market. The consumers will be able to understand the importance of being healthy and consuming healthy drinks and thus the demand for the product will also increases in the market. As the use of social media is very common in the present day thus the advertisement of the products using social media will be beneficial to the company.
Goals of the company:
- To reach the international market
- To lead the beverage market
- To compete with FMCG brands like Pepsi and Coca Cola
- To create an awareness about the health drink that scan be served to consumer having diseases like diabetes, cardio diseases.
The financial objective of the company is to improve their income so that they can further extend their production scale in terms of product and regions they are trading in. the company is highly concerned about the products used by them to serve the customers. They aspire to improve their sale so that they can further expand their business in the international market.
The main objective of the company is to bring products that can be consumed by patients suffering from obesity, diabetes, cardio vascular diseases. Their approach for sugar free products was only to create an awareness among the users and eliminate the intake of deinks that contains calorie and sugar.
The company aims to reach the inter -national market and expand their business to the countries that are not conscious about their health or are unaware of the importance of being healthy.
Product: The product is completely sugar free and is highly beneficial to consumers suffering from acute diseases like diabetes, obesity and cardiac problems. The product highly beneficial to consumers who are health concerned as they have zero contain of calorie and keeps the person fit and healthy. The company can introduce products like sugar free tea that will be targeted for the old generation who might not be interest in drinks (Kim & Mauborgne, 2014). At the same time they can introduce energy drinks for the youth generation who are interested in fitness and sports activity.
Competition with Leading Brands
Price: The price of the product affordable and thus it has attracted by the customer from various ranges. However, if the company tends to compete with the leading brands like Pepsi and Coca Cola then they must decreases the price further to attract the customers who would over- lap the use of the leading brands and purchase this brand.
Place: The countries where the need for fitness is must would be a target place for this industry. The product will be highly in demand in countries where the customers are interested in keeping themselves slim and healthy. The product will also be readily accepted in regions where the people are suffering from diseases like diabetes, obesity.
Promotion: The brand can be promoted with the help of social media. The use of social media has increased in the market and the consumers are using the media to select brands and product for their consumption (Slack, 2015). The company can use the social media to reach the consumers in the international market and inform them about the product and its importance in the market.
The company can implement the plan of expanding the business and competing with the rivals by using few strategies that will make the brand different from the other brands. They can take the following steps:
- Expand the business in the international market
- Inform the consumer about the importance of sugar free drinks.
- Inform the risk related to sugar contained products
- Encourage the introduction of sugar free drinks in developing countries
- Using the social media to attract and inform the consumers
- Increasing the marketing strategies
- Improving the advertisement procedures
- Using strategies that would attract the consumers
- Using strategies that would help the company to compete with the leading brands like Coca Cola , Nestea and many more.
Thus if the company is using such strategies to compete against the leading brands and create a demand for their product then they will be able to lead the market in beverage field. However, there would be few hurdles and blockage in the path of the company to reach its target. The company has to make sure they are using the best skills and strategies to reach their target and are not lacking back in any field.
If the market demand is increasing or the company then it can conclude that they are on the right track. The company will understand whether they are on the right track or not, if they are proceeding in the correct way then they will see an upward movement of the sale and an increasing demand for the product.
Advertisement: the company has to advertise their product in a large scale as they have competitors like Coca Cola, Pepsi who are highly reputed brand and thus to compete with such brands the company has too invest a lot of time and money on their advertisement.
Public relation: The Nexas Company is comparatively less familiar with their customers in comparison to brands like Pepsi. The customers of Pepsi and Coca cola are very much familiar with their brands and thus if the company desires to compete with these brands they have to improve their relationship with their customers.
Target Market for Nexba
Sales promotion: Nexas Company has to give discounts and offers to attract the customers for building a relation with the customers. They have to create a situation where the consumers will opt for this brand instead of selecting the reputed brands like Nestea, Pepsi.
Direct marketing: the company has to use hoarding, leaflet and advertisement in the road and markets along with demonstration about the product. The beverages that is sold by this company are highly beneficial to the society this has to be explained to the consumers by a direct approach (Mongkol, 2014).
Personal selling: The personal selling is also very important to convince the customer about the importance of the product. The direct selling helps the consumers to understand why they should select the product. This gives a better scope for the company to reach the customer and convince them about the importance of the product (Kotler, 2015).
Thus it can be concluded that the product that is typically introduced by Nexas has a huge scope in the market. They can meet their challenges by focusing on their major challenges and steps related to it. The company can improve their marketing strategy to compete with the leading beverage brands in the market and sustain their position in the market. They can introduce new strategies to reach the customers and inform them about the importance of sugar free drinks. It is expected that if they use tactical skills and strategies to advertise and market about their product in the market then they will be one of the leading brand in beverage industry and sustain the position.
de Ruyter, J. C., Katan, M. B., Kuijper, L. D., Liem, D. G., & Olthof, M. R. (2013). The effect of sugar-free versus sugar-sweetened beverages on satiety, liking and wanting: an 18 month randomized double-blind trial in children. PLoS One, 8(10), e78039.
DeBoer, M. D., Scharf, R. J., & Demmer, R. T. (2013). Sugar-sweetened beverages and weight gain in 2-to 5-year-old children. Pediatrics, 132(3), 413-420.
Galbraith?Emami, S., & Lobstein, T. (2013). The impact of initiatives to limit the advertising of food and beverage products to children: a systematic review. Obesity Reviews, 14(12), 960-974.
Hu, F. B. (2013). Resolved: there is sufficient scientific evidence that decreasing sugar?sweetened beverage consumption will reduce the prevalence of obesity and obesity?related diseases. Obesity reviews, 14(8), 606-619.
Kim, W. C., & Mauborgne, R. A. (2014). Blue ocean strategy, expanded edition: How to create uncontested market space and make the competition irrelevant. Harvard business review Press.
Kotler, P. (2015). Framework for marketing management. Pearson Education India.
Malik, V. S., & Hu, F. B. (2015). Fructose and cardiometabolic health: what the evidence from sugar-sweetened beverages tells us. Journal of the American College of Cardiology, 66(14), 1615-1624.
Mongkol, K. (2014). Integrated marketing communication to increase brand equity: The case of a Thai beverage company. International Journal of Trade, Economics and Finance, 5(5), 445.
Slack, N. (2015). Operations strategy. John Wiley & Sons, Ltd.
Varadarajan, R. (2015). Strategic marketing, marketing strategy and market strategy. AMS review, 5(3-4), 78-90.
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