Entering in the foreign market is one of the key sources of gaining feasibility in the global market. This is due to the reason that, entering in the foreign market helps the contemporary business organizations to enhance their market share along with increasing the brand identity (Gnizy, Baker and Grinstein 2014). However, cultural differences in different countries are one of the key challenges being faced by the contemporary business organizations. It is important for the business organizations to effectively determine the cultural differences between the home and host countries and implement the marketing strategies accordingly.
Boost juice is one of the leading retail chains based in Australia and having their market presence in different locations around the world (Juice 2018). They are having specialization in offering different variants of smoothies and fruit juices. Currently they are considering the idea of entering in the market of United States to increase their market share.
This report will discuss about the marketing strategies being used by them in Australia and the strategies that will be beneficial for them in the United States. Moreover, the cultural differences between Australia and the United States will also be discussed in their report. Few recommended steps will also be discussed in this report.
In order to identify the marketing techniques being practiced by Boost juice, the market segments of them will be identified. Segmentation, targeting and positioning model will be used to determine the market segments of them.
The target segment of Boost juice is being classified in different elements. In terms of the demographic segmentation, the target age group of them is 12 to 60 years. Thus, they are catering to huge customer segments (Diamantopoulos et al. 2014). This is due to the reason that, Boost juice is having diverse products applicable for different customers across age groups. In terms of geographic segmentation, the target segment of them is present in different countries including Australia, India and the United Kingdom. In terms of the behavioral segmentation, boost juice is offering instant refreshment for their customers with having more nutritional value compared to conventional drinks.
In targeting the huge customer segments, boost juice involves brand extension in order to have different varieties under same brand name. This helps them in meeting the diverse requirements of the customers (Schlegelmilch 2016). On the other hand, price skimming strategies being involved by them. This is due to the reason that, with the help of the price skimming strategy, they are being able to garner more revenue at the initial stage of the introduction of the new products and gradually reducing the price in order to cater to the mass market.
Moreover, electronic media and print media are being used by them in communicating and advertising their offerings to the customers. With the help of their extensive communication strategies, Boost juice is being ale to gain immense popularity among the target market.
With the help of the price skimming strategies, the products of boost juice are being positioned as affordable alternative to the conventional drinks (Maarit Jalkala and Keranan 2014). Moreover, the promotion of the products is being done to communicate the customers regarding the presence of huge number of varieties of fruit juices in affordable cost. It helps Boost juice to cover more customer segments across different income levels and with diversified requirements and tastes
According to the Hofstede’s cultural dimensions, Australia and America is having different cultural dimensions, which may have impact on the marketing decisions. One of the key differences is the individualistic nature of the two societies. According to the Hofstede’s cultural dimensions, Australia is having slightly less individualistic society compared to the United States. Thus, in the American market, Boost juice should come up with more product assortment compared in Australia. Another cultural difference is the indulgence. In this dimension, Australia is more indulgent country over the United States. Thus, people in the United States will have less leisure time and resources to spend on the fruit juice product of Boost juices. They should position their products in the American market as necessity item for the working people in order to regain energy.
Product
As earlier discussed, it is being recommended that Boost juice should have deeper product assortment in the American market compared to the Australian market. This is due to the reason that, American is having more diverse population with having different taste and preferences (Besbes and Saure 2016). In addition, with the presence of the number of players in the market, deeper product assortment will help Boost juice to cover the market effectively. Moreover, it is also being recommended that, the Boost juice should offer their existing product portfolio in the American market along with some new products according to the local taste and preference. This will help to meet the local requirement and preferences pattern of the customers in the American market.
Price
It is being recommended that mass market and affordable pricing model should be initiated by Boost Juice in the American market. This is due to the reason that, American market is having the presence of niche and higher end brands operating in this sector. Thus, it will not be beneficial for Boost juice to target the niche market. On the other hand, premium pricing will further reduce the target market to a large extent (Sato and Sawaki 2013). Thus, with the initiation of the affordable pricing strategy, Boost juice will be able to cover more market share in the American market, which will be beneficial for them to gain the recognition in the initial stage.
Place
It is being recommended that Boost juice should offer their products from both the online and offline mediums. This is due to the reason that, in the American market, the penetration of internet is huge among the major population. Thus, it is being recommended that, the products of them should be offered through the online medium also. It will help them to offer their products in more market area in the American market. Moreover, with the initiation of the Omni channel marketing strategy, Boost juice will be able to gain more brand exposure in the market (Verhoef, Kannan and Inman 2015).
Promotion
In the earlier section, it is being discussed that, Boost juice only involves promotion through traditional mediums. Thus, it is being recommended that, they should also involve social media marketing. This will help them to determine the requirement and trend in the market and in accordance to that, they can offer their products. Initiation of the social media marketing will also help them in gaining the feedback from the customers in the American market regarding their offered products (Ashley and Tuten 2015). Another promotional strategy that can be involved by them is the free sampling method. This will help them to offer the user experience of their products to the new customers.
Conclusion
Thus, from the above discussion, it can be concluded that, Boost juice is having effective marketing strategies in their existing market of Australia. Moreover, this report discussed about the existing strategies of Boost juice that can be beneficial for them in the American market also. The cultural differences of Australia and the United States are also being discussed in this report. In accordance to the differences being identified, some recommended steps are being discussed in this report. This report also discussed about the recommended marketing mix strategies to be followed and implemented by Boost juices in their new market of America. The recommended steps discussed in this report will help them to have effective marketing techniques in the market of the United States.
References
Ashley, C. and Tuten, T., 2015. Creative strategies in social media marketing: An exploratory study of branded social content and consumer engagement. Psychology & Marketing, 32(1), pp.15-27.
Baran, R.J. and Galka, R.J., 2016. Customer Relationship Management: the foundation of contemporary marketing strategy. Taylor & Francis.
Besbes, O. and Sauré, D., 2016. Product assortment and price competition under multinomial logit demand. Production and Operations Management, 25(1), pp.114-127.
Cross, J.C., Belich, T.J. and Rudelius, W., 2015. How marketing managers use market segmentation: An exploratory study. In Proceedings of the 1990 Academy of Marketing Science (AMS) Annual Conference (pp. 531-536). Springer, Cham.
Diamantopoulos, A., Ring, A., Schlegelmilch, B.B. and Doberer, E., 2014. Drivers of export segmentation effectiveness and their impact on export performance. Journal of International Marketing, 22(1), pp.39-61.
Gnizy, I., E. Baker, W. and Grinstein, A., 2014. Proactive learning culture: A dynamic capability and key success factor for SMEs entering foreign markets. International Marketing Review, 31(5), pp.477-505.
Juice, B. (2018). About Boost Juice – Boost Juice. [online] Boostjuice.com.au. Available at: https://www.boostjuice.com.au/about-boost-juice/ [Accessed 31 Jan. 2018].
Luxton, S., Reid, M. and Mavondo, F., 2015. Integrated marketing communication capability and brand performance. Journal of Advertising, 44(1), pp.37-46.
Maarit Jalkala, A. and Keränen, J., 2014. Brand positioning strategies for industrial firms providing customer solutions. Journal of Business & Industrial Marketing, 29(3), pp.253-264.
Sato, K. and Sawaki, K., 2013. A continuous-time dynamic pricing model knowing the competitor’s pricing strategy. European Journal of Operational Research, 229(1), pp.223-229.
Schlegelmilch, B.B., 2016. Segmenting Targeting and Positioning in Global Markets. In Global Marketing Strategy(pp. 63-82). Springer, Cham.
Verhoef, P.C., Kannan, P.K. and Inman, J.J., 2015. From multi-channel retailing to omni-channel retailing: introduction to the special issue on multi-channel retailing. Journal of retailing, 91(2), pp.174-181
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