Discuss about the Analysis of Marketing Strategies of Boost Juice.
The report would discuss the marketing strategies of Boost Juice by analyzing the marketing mix of the company. The report would help to study the marketing strategies of the company through 4Ps of marketing mix. Further, SWOT analysis would help to evaluate strengths, weaknesses, opportunities and threats of Boost juice. A competitor and market analysis would help to understand the market scenario of juices in Australia.
Boost Juice is a retail chain of fruit and vegetable juices which was founded by Janine Allis in the year 2000. The brand was to develop with the idea to offer healthy food to the people of Australia and encourage them to lead a healthier lifestyle. The brand has acquired huge market segment within short duration through its innovative products and services. Boost Juice has established over 350 stores across the world which are operating in seventeen countries (Manicaros, 2016). The major market segment comprises of teenagers who are more health conscious.
Boost is consistently working to enhance its operations and grow its business over a period of time.
Boost juice offers fresh juice bars to encourage a healthier lifestyle. With the rising obesity and overweight concerns among the consumers, people have begun to prefer healthy food choices (Pacific Magazines, 2013). The problem of obesity has been observed mostly among the children and 25 percent of the children are obese in Australia (AIHW, 2017). This is the reason that 50 percent of the customers of Boost Juice are students (Mason, 2015). The parents and retailers occupy 40 percent of the market share (Wright, 2010). The office executives occupy the remaining share. The majority of people prefer fresh juices and 60 percent of the consumers are females. The company has a scope to target the male market through its marketing mix of 4Ps and introducing products for the males.
Boost Juice offers almost every variety of juice to satisfy its customers ranging from smoothies to bars. It offers different fruit juice bars, boosters, protein and energy drinks, snacks and other juices and smoothies made up of fresh fruits and vegetables (Boost Juice, 2017). Boost Juice Bar is the most selling product of the company and has supported the growth of the company by generating huge sales revenue. Juice bars are prepared from fresh juices and vegetables to offer a unique consumer experience. The juices range include variety of flavor such as mint condition, veggie garden, immunity juice, wild berry juice, energizer juice and two & five juice. The product attracts the consumers who are health conscious and look for healthy food choices.
Though Boost Juice has developed its own brand in the market through its innovation and providing great consumer experience, still it faces competition from Starbucks and Pulp juice. Boost juice acquired Viva juice in 2004 to prevent the competition from the firm. Starbucks is a US based coffee retail chain with its international operations across the globe. It has established itself as a premium brand through its premium pricing strategy and offering unique customer experience. It offers blends of coffee, shakes, snacks and other products (Starbucks, 2017). Starbucks entered Australian market with the aim to become the most successful chain in Australia, but failed due to its brand perception and marketing strategies (Brook, 2016). The brand was perceived as an arrogant because of its unnecessary high prices (Brook, 2016).
Pulp juice is another brand which is known for providing natural fruit juice which has low fats and calories. The brand has not been able to position itself because of lack of right marketing strategies. Easy way is also a competition for the company with its unique product tea beverage.
Boost Juice offers its wide range of products through its exclusive outlets and stores across the Australia. The company opened more than 200 retail stores in the country in just seven years time period (Boost Juice, 2012). The company adopted an innovative approach to provide fresh fruit juices to the customer through its retail outlets. The brand ensures a great consumer experience on every customer visit through its blend of juice flavors and overwhelming services.
The company has opened its retail outlets in the countries Thailand, Malaysia, Dubai, Kuwait, Germany, South Africa, Hong King, Macau, Lithuania, Portugal, Singapore and UK to expand its operations overseas (Boost Juice, 2012).
Boost juice has also introduced “Boost Mobile Van” to increase its customer reach ability and target professionals and office executives.
SWOT analysis of Boost Juice would help to analyze the strengths and weaknesses of the company and analyze the market conditions for growth and opportunities.
Boost juice has an innovative concept of providing fresh fruit juices through retail outlets and offering a unique consumer experience. The company has established its strong market position through its blend of products and services and has strong brand recognition in the country. It provides 98 percent fat free products to encourage healthier lifestyle. It makes use of right promotional and advertising campaigns to capture the target market. Further, it has established its loyal customer base through its popularity among the consumers.
Boost juice has adopted very convincing approach to engage the customers by asking them through emails in case they were not happy with the services. The company has a very strong financial security with credible resources. The company has captured the international markets of Malaysia, Hong King, Singapore, Dubai, Kuwait, Germany and other foreign countries. The company has also adopted licensing system to expand its market overseas which has been achieved through its decision making process.
The company has to bear huge cost to run its marketing and promotional activities because of its huge focus on branding. Boost juice has to take care of the different laws and regulations to successfully operate in international market to ensure health of the consumers. Juices and smoothies are perishable products and thus, require higher regulations to ensure safe product. The company is involved into very narrow product range of juices and smoothies and could extend its product range to increase its target audience and attract greater number of customers. The primary market segment of Boost juice comprises of young teenagers and the secondary market consists of adults up to 30 years of age, which is a very small market segment. The market segment of office executives and professionals is still unexplored. Consumers prefer to have juices only during the summer season and prefer to have hot drinks such as coffee or tea during the winters. The company witnesses significant drop in the sales figure in the winter season which affects the profitability of the company (Seek, 2017).
The company also lacks effective management of its employees which can affect the employee competency and overall productivity of the firm. The preparation of the product requires huge amount of time and the customer does not like waiting for longer period.
Boost juice has great opportunity to target the countries of Asian market which are the emerging economies. It can expand its operations through increasing its marketing and advertising activities. Further, the company can also introduce new range of products to increase its winter sales such as sandwiches, pastries and hot drinks to attract customers during the winter season and increase its sales revenue.
The company can also explore alternate sourcing activities in the market of Asia to lower its manufacturing costs. The company can also explore different channels of buying and selling such mobile application and online order placement. Boost juice has great scope to expand its geographical market and increase its sales revenue by controlling the distribution system effectively.
Boost juice faces severe competition from its rivals easy way, pulp juice and Starbucks. The availability of packaged fruit juices in the market also affects the sales of Boost juice. Further, the sales are also affected by the market conditions such as increasing interest rates and fuel prices. The rising rates and prices affect the disposable income of the consumer which eventually affects the sales of the company. The company faces challenges in its overseas operations because of involvement of perishable product in the preparation of juices and smoothies.
Goals and Objectives
The mission of the Boost Juice is “to become one of the world’s most famous and loved brands” (Boost Juice, 2017). The company follows a love life philosophy to engage its customers through its combination of juices and smoothies. Its marketing objectives are:
- Juxtaposed: Boost juice plans its advertising campaigns which have a juxtaposed effect on the consumers.
- Assimilation: Boost juice has adopted a very interesting method of engaging with the customers by taking individual feedback via email. Each and every customer response is checked by the company to improve the existing process of the company and integrate innovative methods.
- Make our mark: The company takes complete responsibility of its products and services to make its mark on the consumers.
The goal and objective of Boost juice is to cater a large market segment by expanding its target market and widening the age group of consumers.
Boost juice plans to increase its market share by 5 to 10 percent by offering innovative product and services. The company has also plans to expand its market through new channels from where consumers could buy their desired product.
Marketing Mix: 4 Ps
Marketing mix helps to develop marketing strategies through the 4Ps: product, price, promotion and place (Lee, 2000). Product strategy helps to develop the suitable product for the consumer through product differentiation and market segmentation (Lamb, Hair, and McDaniel, 2008). Price stands for pricing strategy which is defined as per the targeted market segment. Promotion stands for marketing and advertising strategies to create relationship with the customers. Place stands for the location which is important factor in a retail business.
Boost juice has very well identified the need of the market and implemented the same in its product strategy. Australia is witnessing rising obesity and excess weight problems among the population and one fourth of the children population is obese (AIHW, 2017). As per the recent study, the cause for overweight has been found as diet structure of the people (MacBean, 2014). Sugar and fat forms a major portion of the diet of an Australian. The rising health diseases such as diabetes, cancer and cardiovascular diseases have alarmed the government of Australia. The government of Australia is taking initiatives to create health awareness among the public (MacBean, 2014). The increasing health concerns in Australia among the public has led to create demand of a healthier product in the market (Australian Food News, 2016). Boost Juice took the advantage of the situation and introduced the fresh fruit and vegetable juices in the market to avail the advantage of the market circumstances. The company introduced a wide range of products such as Fruit Juice Bars, protein and energy juices, energy boosters, calorie counters and boost snacks to satisfy the need and requirement of the consumer. The innovative products of fresh juices and smoothies attract a large number of people because of the nutrition value (Cormack, 2016). Further, it also gives the users a choice to create their own customized product. It provides juices and smoothies which are 98 percent fat free.
Boost Juice was introduced in the market to compete with the soft drinks such as Coca cola, Pepsi and other non-alcoholic beverages. There is a huge competition within the soft drink market because of which health drinks have smaller market segment. The time when the company was launched, people were only consuming soft drinks and sugared juices which were detrimental for the health of the people. Now, Janine Allis launched the brand to target the market segment of soft drinkers. In order to target mass market segment, the company adopted low cost leadership strategy which proved very effective for the company and attracted large consumer base towards the fresh juices. Cost leadership marketing strategy is used to deliver the message to the audience that the company provides the product at the lowest possible cost (Schermerhorn, 2010). It has been proved as one of the most effective strategies to capture the market share in a very short duration. A company has to work hard to maintain its low prices and has to consistently manage its operational activities to reduce its prices (Schermerhorn, 2010). Boost juice has maintained its low prices and maintaining its product quality at the same time.
Boost Juice has been able to capture strong hold over the market by offering economical priced juices and has penetrated the market. The consumers buy the fresh juices without giving any second thought because of the company’s economical pricing strategies.
Boost Juice provides fresh fruit and vegetable juices to its customers. In order to provide freshly made juice, the company has opened its retail outlets across the country. Boost juice also operates on a franchising model system. Within a very short duration, the company has established over 100 stores across the country.
Boost juice invest heavily into the marketing and advertising to promote its products and services.
Boost juice advertises its products on television, internet, radio, billboards and posters to directly reach its target customer (Dias, 2016). Boost Juice also launches promotional offers to increase its sales such as buy one get one free, happy hours, buy one get 50 percent off and special offers for kids and occasions (Serrels, 2016). The company offers different promotions during festive season and occasions to attract the customers.
Boost Juice has its own customized website which has been attractively designed by displaying all the products of the company. The website gives every detail about the company, products, stores, new launches and other updates of the company.
Further, Boost Juice has adopted itself with the emerging technology to survive in the changing business context. It heavily uses digital marketing to connect with its primary market segment of teenagers (Coyne, 2016). It has created its own page on the Facebook to promote its newly launched products and exciting offers (Autsin, 2016). The strategy was adopted because Australians spend their half days every week, which counts to 12 hours, on Facebook (Hill, 2016). Social media is an emerging industry and has created huge consumer base.
Apart from traditional promotional activities, the company has successfully established its brand image in the market through its services and innovative products.
The report has successfully discussed the marketing strategies adopted by the company Boost Juice. The primary target market of boost Juice comprises of teenagers and the secondary market consists of adults up to the age of thirty. Though, Boost Juice is the largest retail chain in the southern hemisphere, yet it faces competition from Pulp Juice, Easy way and Starbucks. SWOT analysis revealed that its core strength is its global brand recognition and innovative products. It has a great opportunity to expand its operations in the Asian market. The brand has very appropriately made use of the 4Ps of marketing mix. It rightly deployed product strategy by introducing fresh fruit and vegetable juices in the market to satisfy the need of the consumer. The product was launched due to its demand in the market. Further, it uses cost leadership strategy to compete with the soft drink industry. It heavily invests into marketing and advertising to promote its products through different channels.
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