Developing A Three-Year Marketing Essay For Boost Juice Bars.

Task Description You are required to develop and document a three year Marketing Plan with a tactical plan for implementation in the coming year for the organisation as a complete entity, a specific business unit or a specific product or service You may refer to course notes.

Kotler et al. 2013, other academic literature and company information. Note - All information will remain confidential

Assessment Format: Title Page Executive Summary Table of Contents Background A short description of the company, its current markets and product offerings together with what issue the marketing plan will be addressing.

Understanding the market (audit) Micro environment analysis (p 116)

Micro environment analysis (p 116)

Macro environment analysis (p119)

Market research requirements (p155) May conduct some research or Identify secondary data available

Consumers (Chapter 7) Who are they? (family type, income levels, geographical etc) Consumption patterns (buyer behaviour) Decision process for this product /service Business to business? Key issues

Conclusions and key issues /assumptions emanating from Audit Key Marketing objectives (pp 355 / 633)

Boost Juice Bars is an Australian health product organization which sells various consumer products such as juices, smoothies and protein or energy shakes. The company is founded with the idea of encouraging healthy living in Australia. It was the inception in the mind of Janine Allis who observed that other countries have large number of healthy consumer products in comparison to Australia. The citizens of Australia are outdoorsy and love sports; however, there was absence of healthy products in the country. As a result, the innovative idea of the founder became instantly popular and a large number of people became its regular customers. The company was founded in 2000 and since then has become the leading health product organization in Australia. Today, it has presence in several countries all across the globe and its annual sales have reached more than two billion dollars (Boost Juice, 2017). The first store of the company was founded in Adelaide and later, several retail stores were developed all across the globe. Janine worked herself in the first store which assisted her in understanding the taste of different customers and how to develop products which is pleasing to large number of customers. As she worked in her fist store, she also developed insight related to the market potential, market strength and logistics (Boost, 2017).

The market audit is the approach of examining the marketing environment of the organization. It includes the organization’s marketing objectives, strategies and activities so that an improved plan can be developed for the marketing activities of the organization.

The micro environment of an organization refers to the external environment of an organization and the factors which has an impact on the company’s business.  In this section, the Porter’s five force analysis is applied to examine the competition in the fresh juice industry.  In the Porter’s five forces analysis, five forces are bargaining power of suppliers, threat of new entrants, bargaining power of buyers, threat of substitutes and the industry rivalry.

Bargaining Power of Suppliers

The suppliers of Boost Juice are the farmers who provide fresh fruits, juices and dairy products. The suppliers hold power over the business organizations because if they increase the price and reduce the quality of the product it will have a direct impact on the quality and the price of the manufactured products. The power of the suppliers is high if the switching cost of the supplier is high. The company offers juices, smoothies and packages foods. It provides food with the highest quality; therefore, it needs to select the best supplier for the organization. The company has the goal to provide high quality products throughout the year; therefore, the suppliers have a substantial power over the comp any (Luther, 2011).

Bargaining power of Buyer

The company is a strong household name and has a loyal customer following. There are a large number of customers who are dedicated to the healthy lifestyle and regularly buy company’s products. There is no major competitor of the organization. Therefore, the buyers exercise a moderate power over the company.

Market Audit

 Threat of Substitutes

The substitute product refers to the products which are not in the same industry but   can be used as a substitute for the product. The primary substitutes of the product are aerated drinks, soda water and beverages (Westwood, 2013). People use these drinks when they are feeling thirsty. The substitutes such as coffee, soft drinks, healthy juices, energy drinks and milk shakes pose high threat to the juice companies. A large number of multinational companies such as Starbucks and Costa have entered the Australian market and giving strong competition to the company.

Threat of New Entrants

The barrier to entry in the industry refers to the factors which prevents a new organization to enter into the industry. It includes the capital requirements and the government legislations. The new business organizations can easily enter the juice and healthy eating market. The capital requirement for the business is comparatively low (Cohen, 2005). In addition, the company will need to follow the legislations related to food safety and contamination of food.

Industry Rivalry

The industry rivalry refers to the number of companies in the industry. The number of companies in the industry is directly associated with the competition in the company. Boost Juice is the leading organization in the fresh juice and the healthy product industry.  There are other companies also; however, they are small in size.

In the present times, the industry of the healthy food is growing potentially. The customers are becoming aware of their heath and increasingly adopting the healthy lifestyle. The healthy food, juices and smoothies are a part of the health lifestyle; therefore, they are becoming increasingly popular among the customers. Therefore, Boost Juice can be considered as a fast growing company in potential market.

The macro environment analysis refers to the external factors which may affect the performance or the marketing strategy of the organization. The external environment of the organization refers to the political, economic, social or the technological factors which may affect the operations of the organization. In the below section, the external environment of the organization is analysed with the help of PEST analysis (Boost Study Kit, 2015).

Political Factors

The government legislations impact on the operations of the organization. In Australian, there is regional groups which can impact on the operations of the organization. The Agreement of CER (Closer Economic Relations) has allowed Boost to take free imports from New Zealand. The country can access cheap fruits and dairy products through this agreement. In Australia, there is also freedom of competition which states that all the companies and the business organizations have equal opportunity to trade in the country.

Economic Factors

The economy of Australia is developed and the people of Australia have high spare income to spend on their fitness. The economic factors refer to the income of the people, interest rates, government policies and the taxation structure. It could be critiqued that the people of Australia have high income level and they are willing to invest in their health (Shankar, Carpenter & Hamilton, 2012).

Micro Environment Analysis

Social Factors

There are several social and cultural factors which may impact the business of the organization in the country. The diet preference of the Australian citizens can create a competitive advantage for the organization. Australia is a big country. The ratio of the young population is higher than the ration of older population. This generation of Australia is encouraged to buy low fat smoothies and sugar free juice. It aligns with the diet preference of the Australian people.

Technological Factors

 The technological factors positively influence the operation of the organization. The improvement in the technological infrastructure has assisted the organization t in easy and quick transportation between different cities. The company can easily transport large amount of fresh fruits and other dairy products from one location to another rapidly.

There is huge market potential for Boost Juice in Australia. The proportion of the younger population is comparatively higher in the total population of the country. It can be critiqued that that there the market if fresh juice and smoothies is substantial in Australia.

SWOT Analysis

In the market research, it is important to identify the target market and the pattern of the consumers. The foremost step in the marketing process is the segmentation of the target market. The market segmentation refers to the process of dividing all the customers of the company in potential groups or segments according to their characteristics. The market segments are constructed according to the interest or the needs of the customers.  The consumer market can be divided according to their characteristics into demographic, geographic, psychographic and behavioural consumer segments (Fifield, 2012). In demographic segmentation, the consumer segments can be divided according to the gender, income and the education of the people. The geographic segmentation refers to the division of the consumer segments according to the physical location or the region of the organization. In psychographic segmentation, the consumer segment is divided according to the lifestyle or the personality. The behavioural segmentation   refers to the division of the consumer segment according to the purchase pattern and the consumer loyalty. In the present, the consumer segment can be divided according to the demographic patterns. In the present, the consumer segment of the organization can be divided according to the demographic features. The young generation who are healthy conscious comprises of the primary consumer segment of the organization. Furthermore, the consumer segment can also be divided according to the psychographic features as the people who are more outdoorsy and participate in sports activities are likely to buy the product.

The consumer behaviour is the study of the consumer purchase process and. It is the behavioural study in which the individuals, groups as they decide, select and disposes of the products. It can be critiqued that the characteristics of an individual customer such as the emotions, attitudes, personality and the lifestyle affect the purchase decision of a person. The purchase decision begins with the stage in which a consumer identifies a need. In the second stage, the person conducts information search for identifying information for addressing the particular need. In the next stage, the consumer examines several alternatives to find the optimal option that addresses their need. After the evaluation stage, the next stage is the consumer intention. In this stage, the consumer forms a purchase intention. At this stage, the consumer may form decision to purchase the product or not. In the next stage, the consumer purchases the product  (Ferrell & Hartline, 2013). The end of this process is marked by the post-product evaluation. In the case of present organization, the consumers identify the need of healthy food products in their daily lives. They can choose from different options such as fresh juice, local vendors and other competitors. Moreover, the consumers who want to buy juice as a refreshment drink choose from other refreshment drinks.

BCG Matrix

It can be concluded that the primary consumer segment of the organization is the health conscious consumers. They are aware of their health and want to intake healthy drinks. They go out of their way to look for the food options which are good for the individual health of the consumers.

Boost Juice is a pioneer juice and beverage company in Australia. The company is leading enterprise which sells fresh fruit juice, smoothies and shakes. However, it is important for the organization to implement comprehensive and effective marketing campaign to build customer loyalty and increase the customer base of the company. As a target market, Australia has huge potential for the company as the population has a natural tendency for the outdoor activities and sports. They are also inclined towards their heath. Therefore, it is important that the organization develop its customer base with exhaustive marketing strategy. The development of the marketing objectives is important in the development of a marketing plan. The marketing objectives refer to the set of objectives which can be used for the promotion of the products and services to the potential customers in a given time frame. It presents the expectations of a business organisation with its marketing campaign or marketing objectives (Doole & Lowe, 2008). In this regard, in this section the a few marketing objectives have been outlined which can be used to direct the marketing activities of the organization.

• To increase the current market share of the company by 20% in the upcoming six months.
• To increase customer loyalty of the company by giving discounts and loyalty bonus to the regular customers
• To increase the brand awareness of the organization

The marketing strategy refers to the tactics and tools which can be employed to drive the sales of the organization. The fundamental goal of the marketing strategy is to increase the sales of the organization and assist in obtaining a competitive advantage. In marketing strategies, several long term and short term activities are conducted to achieve the financial goals of the organization. The foremost step in devising the marketing strategy is determining the target market. In the present, the target market is women and the middle-age generation. Nowadays, the people are becoming more aware for their health. Women and the middle-age people have started taking care of themselves and have started participating in sports activities. Currently, the drink is popular among the young boys and the girls. Therefore, the company needs to expand its customer base (Paley, 2006). The target market of the organization has been created according to the demographic and the behavioural segmentation.

Demographic segmentation:  In the present marketing strategy, the company plans to promote the product to women and the middle-aged customers. Currently, a large number of women are becoming conscious regarding their health and using health care products. In addition to it, the company will also target the middle-age people as these people are also becoming aware of their health.

Behavioural Segmentation: In the behavioural segmentation, the customer base is divided according to their lifestyle choices and culture. According to this market segmentation theory, the consumers who are aware of their health and prefer to take energy and healthy drinks will be targeted.

The implementation of a marketing strategy requires that a well-developed and efficient marketing plan which is aligned with the core business strategies of the organization. The marketing plan comprises of all the marketing objectives, marketing strategy, marketing mix and the marketing budget. The marketing mix refers to the offering that an organization is extending to its customers. It can be defined as the set of tools which a business organization uses to pursue its marketing objectives. It is a fundamental tool in which thee marketing tactics are applied to increase the product sales. In the marketing process, marketing professional conduct thorough market research and determine the fittest marketing strategy for the target market. The marketing mix has four variables. These variables are used to increase the demand of the product (IFA, 2016). In the traditional marketing mix, there are four variables. These variables are, namely, product, price, place and promotion. A recommended marketing mix has been proposed in this section:

Macro Environment Analysis

Product: Boost Juice offers a range of health juices, smoothies and shakes. The competitive advantage of the organization is its focus on the healthy products. However, the product range of the organization is very limited. The company can plan to develop products which are focused on the health of women and the middle-age customers. It means that the organization can develop products which are focused on the nutrient supply of the women and the middle-aged customers (Hillestad & Berkowitz, 2012). It can offer fruit and healthy salad, sandwiches which are healthy. The customers will also have the option to eat a healthy diet.

Price: The Company has marked its entire product at competitive prices. All the products are market comparatively low so that the organization can curb competition. As a result, the profitability of the company is limited despite its high sales (Prowd, 2013). The company should steadily increase the price of its products so that the organization is able to increase its profit. The company can also device a strategy in which the high prices are advertised as a result of additional features.

The promotional strategy is an integral part of the marketing strategy of the organization. The company will use comprehensive marketing strategy to promote itself. It will use methods such as broadcast media such as television, social media and FM radio to communicate their communication to the customers. In addition to it, the organization should also use vibrant colours and enthusiastic images which rhyme with the motto of the organization. It should also focus on the promoting the product in events which are dedicated to women and the middle-aged people (Switzer Daily, 2009).

Place:

The place of the promotion will be Australia. The organization will sell its product through its retail outlets. These retail outlets will be developed near gyms, yoga centres and sports clubs.

The tactical marketing strategy refers to the marketing plan in which various tactics are used for the marketing process. The tactical marketing plan refers to the use of for methods for creating a brand image of the organization. In the below section, a tactical plan is presented to boost the sales of the organization.

• New product will be launched with added features to attract the target customers of women and middle-age customers
• Marketing will be conducted to drive the sales of the product in the target customer group
• Various marketing channels such as broadcast media and social media will be used for the promotion
• Along with it, promotion will be conducted in events in which the inflow of the target customers is higher. For instance, in women events or charity events
• The prices of the product will be kept high so that the overall profitability of the organization increases.

In the development of a marketing plan, it is important to determine the budget and target of the marketing plan.

The monitoring and control are essential in a successful marketing plan. In order to monitor the progress of the marketing plan, it is important to implement some controlling measures. It is also essential for the examination that whether the marketing plan is giving maximum outputs. The control measures examines whether the actual performance of the organization is in accordance with the projections. There are several methods of analysing the success and the viability of marketing plan such as customer feedback, target market sales and improvement in the market share of the organization. The primary aim of the marketing activities is to motivate the customers to make a purchase decision or buy a product. The company can monitor the feedback of the customer with the help of direct feedbacks of surveys. The business organization can reach the customers remotely by online polls. In addition to it, the organization can also use surveys or individual interviews with the customers to analyse their opinion regarding a particular service (Ferrell & Hartline, 2013).

Conclusion 

In the present report, the marketing plan of Boost Juice has been proposed. It is one of the leading juice and beverage organization in Australia. The company has a substantial market share in the country; however, in order to boost the sales of the organization, a marketing plan has been devised.  The company will extend its product range and launch a new product for women customers as well as middle-age customers. The price of the product will be kept higher to increase the profitability of the organization. The company will promote its product range by offering products at its retail outlets. The organization will also use different communication channels such as social media as well as broadcast media to promote the product. The progress of the marketing plan can be analysed with the help of monitoring and control measures. There are several methods of evaluating the effectiveness of the marketing plan. The customer feedback and the target market sales can be used to examine the effectiveness of the marketing plan.

References

Belohlavek, P. (2008). Unicist Marketing Mix. Blue Eagle Group.

Boost Juice. (2017). The Boost Story. Retrieved 10 July 2017 from https://www.boostjuice.com.au/about 

Boost Study Kit. (2015). Retrieved 10 July 2017 from https://www.boostjuice.com.au/wp-content/uploads/2015/02/Boost_Study_Kit_2015.pdf 

Boost. (2017). Why Pick Boost. Retrieved 10 July 2017 from https://www.boostjuice.com.au/why-pick-boost 

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Ferrell, O.C., & Hartline, M. (2013). Marketing Strategy, Text and Cases. Cengage Learning.

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Fitzsimmons, C. (2014). Boost Juice founder Janine Allis in partnership talks with Bain Capital. Retrieved 10 July 2017 from https://www.afr.com/leadership/entrepreneur/boost-juice-founder-janine-allis-in-partnership-talks-with-bain-capital-20140506-jya8p 

Hillestad, S.G., & Berkowitz, E.N. (2012). Health Care Market Strategy. Jones & Bartlett Publishers.

IFA. (2016). AIA makes product enhancements, partners with Boost Juice. Retrieved 10 July from https://www.ifa.com.au/news/15635-aia-makes-product-enhancements-partners-with-boost-juice 

Luther, W.M. (2011). The Marketing Plan: How to Prepare and Implement it. AMACOM Div American Mgmt Assn.

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Prowd, J. (2013). Boost's pricing problem. Retrieved 10 July 2017 from https://www.intelligentinvestor.com.au/2013/07/boosts-pricing-problem 

Shankar, V., Carpenter, G.S., Hamilton, J.F.A. (2012). Handbook of Marketing Strategy. Edward Elgar Publishing.

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