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MKT303 International Marketing: Technical Issues

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  • Course Code: MKT303
  • University: Kaplan Business School
  • Country: United States

Question:

You are to pretend to be the International Marketing Manager of Boost Juice. The Boost Juice team have decided to launch the brand in the United States. As the marketing manager you have been asked to provide an analysis on how you think the brand can succeed in America and devise a global marketing report.
 
Task:
 
Provide insight into the Boost Juice brand and evaluate the success of the brand in Australia.
 
1. Outline the marketing techniques used by the brand in Australia
2. Discuss which marketing techniques used in Australia would work in America.
3. Discuss cultural differences that influence marketing decisions in both Australia and America.
4. Apply the following 3 theories; Hofstede’s communication theories, market segmentation theories, marketing mix theories.
5. Provide recommendations as to how the Boost Juice brand can launch in the American market.
 
 

Answer:

Introduction

Boost Juice in Australia delivers a range of deliciously freshly squeezed juices in a variety of dimensions like low-fat smoothies, green boosters and many others. Boost juice is convenient in their service as it provides products in pursuit of the customers with healthy types of fast foods. In the present stage, the company is in a differing status from their competitors in terms of its brands and environment-friendly packaging and products. In addition to this the company also effectively offers its brand position by clearly differentiating its product. Therefore, the study focuses on the marketing plan of the company in Australia and in America using different marketing theories.

A marketing technique of the organization

Boost Brand uses various marketing technique to promote their products differentiating it from the competitors. Boost Juice through Zoo retail and Millipede has released its first branded game that is known as Free the Fruit. These free the fruit is designed in such a way that it involves with the other brands and its audience by providing rewards to the players with free smoothies and discount offers. This drive is the traffic during the period of the campaign.

This game has turned in to a successful one in Australian app stores from the second day of its launch. It has achieved more than 6 minutes of mobile game player in Australia. Unlike the traditional method of marketing like TVC, the company tends to engage the audiences for longer sessions more frequently on a playing trend through branding. The Game has carried almost $3 million boost juice vouchers for those who are willing to take part in the game (Campaign Brief Australia. 2018).

They also use various healthy and nutritious food campaigns, in an offline and online method throughout the year. Through this marketing strategy, they deliver the message to people about the importance of health in the market.

Marketing methods used in Australia also applicable in America

Content marketing techniques and Social media marketing techniques used by the organization in Australia can be used in America as well. From marketing research, it has been found that almost 96% of the Australian marketers use content marketing (Tidwell and Marks 2018). Australian business to business marketers mostly uses content marketing strategy.  Similar to this American markets invest more budget in content marketing as well as social media marketing. In their content, the company is needed to use health image and use of healthy food ingredients for the American origin (Nielsen 2016). In America, most of the people are concerned about health and diets, the government as well have passed health-related policies in America. These instances will be helpful for the company for marketing the product in America.

In case of pricing strategy used by the company in Australia is that they sell their premium product at a valuable price. However, the price levels in America are relatively high and Boost Juice sales price are set at $4.50 for a smoothie. Compared to the local competitors in America this process may be low and will effectively attract the local's customers as well as visitors in America.

Impact of culture on marketing decision 

In a study, consumer style of decision-making has been comparatively studied in between America and Australia to understand the high and low engagement of products. As stated by Ali, and Darak (2014), results found in this context, highlighted that there is the major cultural difference in the American consumer market strategies and Australian consumers. In this context, Australian consumers believe that they pretest 10 out of 20 products before promoting them. However, both American and Australian consumer’s subjectivism reports utilizing non-compensator decision-making strategy for most of their producers. In this context, the study of investigating on consumer beliefs and choices of strategies used for the produces shows that there is the large discrepancy that exists in between beliefs and original behaviour of consumer choice. Goodrich and De Mooij (2014) states that reports show that there are unconscious an automatic process that influences the consumer choice of marketing.

Marketers therefore are highly concerned about the cultural belief of the consumers. This is because marketing decision-making is highly dependent on the perceptions of the consumer not only empirical results about consumer behaviour. However, while comparing the literature of America and Australian culture believe it has been found that one of the major reason is the Australian culture populism that is not much prevalent in America. As stated by Wang et al. (2016), populism is illustrated as a culture's intrinsic value used in familiar practices and institutions. However, the other concept is the concept if time-related to the characteristics of modernism, technology as well as violence. It is the continuation of varying degree of populism and modernism that is used in a culture that may create a problem.  

These factors exist within Australian culture while the American culture embraces modernism. Language is also an important factor of culture that may affect marketing behaviour of the consumer. However, in the case of America and Australia, both the countries regional language is English that will help the marketers to interact with the employees, customers and other suppliers. However, language may pose a challenge if the employer or any customer is unable to understand the local language. According to Rao and Tilt (2016), religion is another major factor of culture that may be different in Australia and America. Religious and social beliefs tend to influence the consumer behaviours and purchasing attitude of a country.

 

Application of theories

This dimension deal with the factor that the entire consumer present in the society are not equal and its expresses the behaviour of culture towards the inequalities of power (Hofstede Insights. 2018). However, in America, there is a high acceptance of power in the market. Therefore, this factor makes it an integral factor of the society.

In the American society has and stable premises that allow liberty and justice for all the individuals in the society. This shows an explicit evidence on the equal rights of the consumers in the society. According to Rallapalli and Montgomery (2015), at the same time communication as well is informal direct and participative in nature will allow in retaining the customer.

The USA has a low uncertainty avoidance and the organization there are more dependent on the village market model (Savell et al. 2016). Therefore, consumers in America are rarely accustomed with strict rules associated with the levels of hierarchy. In this, model control and cooperation's takes place between marketers and consumer that leads to mutual understanding through informal communication

The masculinity index in the USA I high with 62 that can represent typical behavioural patterns. The country represents a combination of high musicality drive along with individualism drive.

Market segmentation

Demographic

The USA demographics existing population is almost 64.5 million with a majority of the population in between 25-40 year. This is an appropriate age for the preference of smoothies and Booster juice since the customers are more likely to be university and college students or people with full-time professions.

Geographic

From the geographic point of view in order to retain customers who are already acquainted with a fresh smoothie and juice products, Booster juice needs to look for presence in high traffic areas. This is because a large amount of population resides in an urban location (Savell et al. 2016).

Psychographic

Using psychographic segmentation the company may target health-conscious consumers in the USA. In the USA, most of the consumers are concerned about their health in order to prevent disease and to enhance their quality of life.

Behavioural

Behavioural segmentation in the USA will seek for changing lifestyles in the country in relations to their health-conscious activities and decision-making.

A brand’s product can be placed in several different methods including the attributes of the country that may not be attractive for other. After an examining research on the USA market, it has been found that Booster juke can successfully position their product in that region by responding effectively to the needs of the customer.

All the labelling a packaging will remain the same, as there are no barriers in language in-between Australia and America. However, the labelling is going to be the same but the style of packaging may be modified for attracting the customer.

The first suggestion for the company is that they use price to obtain specific objective such as targeting a specific return on profit. On the contrary, a second option is that they can place reduced priority on the foreign business and opinions of export sales. As influenced by Rogers et al. (2015), it can be suggested that they need to focus on the level of income while setting the price.

In the case of promotion, they can use word of mouth through the various channel of distribution. They can also promote their brand on social media sites using content marketing and promotional discount offers on their products to retain more customers.

Recommendations 

Booster Juice is required to study the American market properly before setting up the business in America. However, in its objective to grow and extend its market internationally, Booster juice can confidently progress towards the USA market with the recommendations of promotional and segmentation strategies. In this context, they are required to focus on promotional strategies such as gift cards and promotional cards to attract customers.  

Moreover, they are needed to aware of the cultural differences that may influence the marketing. By creating a strong brand image through promotions and differentiating strategy from their existing competitors in the American market, they can continue to offer healthy Booster juice products to the customer.

 

Reference list

Ali, R. and Darak, R.A., 2014. Competitiveness of Malaysian fresh agriculture and agro-based products in global markets: A case study in the United Arab Emirates. Economic and Technology Management Review, 9(3), pp.93-101.

Campaign Brief Australia. 2018. Boost Juice launches new 'Free the Fruit' gamification app via Retail Zoo and Millipede. [Online] Available at: https://www.campaignbrief.com/2016/04/boost-juice-launches-new-free.html [Accessed 23 Sep. 2018].

Goodrich, K. and De Mooij, M., 2014. How ‘social' is social media? A cross-cultural comparison of online and offline purchase decision influences. Journal of Marketing Communications, 20(1-2), pp.103-116.

Hofstede Insights. (2018). Country Comparison - Hofstede Insights. [online] Available at: https://www.hofstede-insights.com/country-comparison/the-usa/ [Accessed 26 Sep. 2018].

Nielsen, K.E., 2016. Health beneficial consumer products—status and trends. In Developing Food Products for Consumers with Specific Dietary Needs (pp. 15-42).

Rallapalli, K.C. and Montgomery, C.D., 2015. Marketing strategies for Asian-Americans: guidelines based on Hofstede's Cultural Dimensions. In Minority marketing: Research perspectives for the 1990s (pp. 73-77). Springer, Cham.

Rao, K. and Tilt, C., 2016. Board composition and corporate social responsibility: The role of diversity, gender, strategy and decision making. Journal of Business Ethics, 138(2), pp.327-347.

Rogers, A.A., Kragt, M.E., Gibson, F.L., Burton, M.P., Petersen, E.H. and Pannell, D.J., 2015. Non?market valuation: usage and impacts in environmental policy and management in A Australia. Australian Journal of Agricultural and Resource Economics, 59(1), pp.1-15.

Savell, E., Fooks, G. and Gilmore, A.B., 2016. How does the alcohol industry attempt to influence marketing regulations? A systematic review. Addiction, 111(1), pp.18-32.

Tidwell, P. and Marks, W. 2018. Australian Versus American Consumer Decision Making Strategies: a Comparative Analysis. [Online] Acrwebsite.org. Available at: https://www.acrwebsite.org/search/view-conference-proceedings.aspx?Id=11195 [Accessed 26 Sep. 2018].

Wang, M., Rieger, M.O. and Hens, T., 2016. How time preferences differ: Evidence from 53 countries. Journal of Economic Psychology, 52, pp.115-135.

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