Discuss about the Global Consumer Market Segmentation Strategy.
A new outlet is deemed to be risky in comparison to an existing outlet. However, it also offers an opportunity to attaining increased returns in case effective strategic decisions are made. It is also observed that as the selected client cannot change some of its product components of the franchisor they will be able to choose location for this new outlet (Aithal, 2016). New adjustments are also to be made within “total product” so that it appeals more directly to the target market within the new location and consider their own store marketing communications plan. The objective of this report is to explain that as an owner of a boutique marketing consultancy business specializing in financing and one of the company’s clients has expressed interest of turning out to be an owner of the franchise. Boost juice bars is selected as the franchise chain that is an Australian company and will be launched in global market. The report will also clarify whether this selected franchisor recently just operates in Australia or attains global perspective.
Boost juice company is oriented in Australia and distributes its products within the supermarkets along with other stores. For the reason that the company exist in a maturity phase that has selected a stability pricing objective. The company offers healthy and fast drinks all over Australia and was established in the year 2000 (Barrow, Barrow & Brown, 2015). It is positioned as the fastest growing fruit juice bar within the southern hemisphere. The company is oriented within all over Australia and is observed to have around 200 stores in most parts of the world. Boost juice company offers a wide range of great tasting juices or smoothies that are sold by them that offers convenience along with argumentation of several products. This also deems to improve the needs and changing desires of different consumer groups from all over the world (Barucic & Umihanic, 2016). As the company is focused on the franchise system, it will build shop in busy business area for focusing on international expansion.
The consumers of Boost juice company are the ones those desire to consume fresh, quick along with nutritious juices that is of superior quality and does not come with artificially added flavors. However, in the upcoming years the company is deemed to expand its business through franchising within the Asian markets. The company has a broad range of consumers for the brand is renowned all through the world. Moreover, in while entering a new market or for product modification, the company attains clear understanding regarding the desires and wants of its consumers (Beiko et al., 2017). This also consider effectiveness of its product distribution channel along with attaining their interest and attention. For the reason that Boost juice company is attaining a dominant position within the market in the juice market, it has attained a huge loyal consumer base. All its existing consumers are willing to pay more prices for its customized products for the reason that their needs are addressed properly. Boost juice company always focuses on the objective of generating an effective co-production process in order to develop a tailored product based on consumer needs. Based on the preferences of its consumers, the company made sure that all its product must add an increased value in which the price turns out to be a less vital factor.
Products of Boost juice company are greatly focused on its consumers’ health and nutrition and their products are segmented into various categories such as smoothies, juices, crushers, complementary products and supermarket product ranges (Boyd et al., 2017). Smoothies offered by the company includes low fat smoothies, super smoothies, skinny smoothies, sporty smoothies along with lite smoothies. In addition, juice ranges of the company include “made to order” juices made from fresh fruits. Crushed product segment of the company includes berry crush, mango tango crush, tropical crush, watermelon crush and lemon crush. The complementary products of the company include brinks, a range of healthy snack encompassing fresh yogurt, muesli bars, fruits and wraps (Burns, 2016). Supermarket product range includes frozen yogurt, bottle juice along with healthy snacks already present within the market.
PEST Analysis of the Boost Juice Company is observed to offer a comprehensive insight within the environment of the organization. This is for the reason that it will cover analysis of economic, political, social, technological, legal and environmental factors that impacts the business of the company (Craft & Hassan, 2015). This analysis can facilitate the company in attaining competitive advantages within through its new franchising decision from the boutique marketing consultancy business. PEST Analysis for Boost Juice Company is conducted under:
SWOT analysis of Boost Juice Company is carried out in order to analyses the position of the company in the Australian market. It will also facilitate evaluation of the strengths and opportunities attained by the company for attaining competitive advantages that can support its franchising strategy (Ho, 2014). Threats and opportunities faced by Boost Juice Company is also evaluated that can be considered for developing an effective business expansion franchising strategy.
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Strengths · Increased capability to get involved with the consumers · Strong back up related with financial resources · The brand is observed to expand its business operations in more than 15 nations · Increased consumer loyalty for the reason that it is extremely popular between its user base · Franchise system that is employed for expanding its shops · Highly innovative service offerings and product concepts · Increased consumer loyalty that is highly popular between its user base · Increased focus on advertising campaign and promotions · Better brand recognition and name within Australia |
Weaknesses · The brand is not yet well established in the international markets · Sales of the company decreases drastically in winter season · Increased focus on promotional activities for which the marketing cost can also be experienced |
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Opportunities · Targeting the developing Asian market · No strong existence of direct competitors · Increased marketing and advertising through print, TVC’s and online media |
Threats · Increasing raw materials cost · High competition that can decrease market share and can have a drastic impact on business · Fluctuating government policies along with international currencies which can impact business operations drastically |
Target market of Boost Juice Company can be considered as a segmented consumer group in order to achieve particular characteristics along with behaviors that requires different strategic marketing mix methods in attracting specific consumers (Jansen, 2017). The consumer segmentation bases of Boost Juice Company that targets the company’s market encompass behavioral, psychographic, geographical along with demographic variables. Boost Juice Company recognizing their target market that facilitates the company to offer consumer value along with generating profitable results for the company. Target market of the Boost Juice Company must include the consumers those are young and youthful. Target consumers of the company also includes individuals those are active as well as have a moving lifestyle.
Boost Juice Company also must focus on capturing the attention of this target market through making claims along with explaining facts regarding the benefits of consuming their beverages (Kacker et al., 2016). The company also must consider targeting its consumer market through franchising and explaining its exceptional benefits of products to the health conscious consumers. Target market of the company must also include health conscious males and females those are searching for a healthy substitute for the fast food. The target market for the company’s franchised business expansion will appreciate quality and timely service with fast delivery. The target consumer segment will belong to the group of mid to high income and are likely to indicate conspicuous consumption.
Considering the needs of its target market, Boost Juice Company has an objective of developing a healthy option for the fast food along with having rapid and timely service (Kiel, 2014). Their exceptional along with lively surrounding attracts a broad range of consumers within the store. The colorful and the bright walls adds on to the company’s objective of generating a positive work environment. The target consumer market segment has a perception that the fast food market of Australia is highly unhealthy and uninspiring. For this reason, through the franchising business expansion strategy, Boost Juice Company can facilitate fruits health conscious target consumers within the targeted Asian market to consumer more fruits and vegetables (Lee et al., 2015). Great tasting smoothies and juices will be offered by the company as per the demand of its target consumers.
India, being a developing economy provides a sea of opportunities for the organization to widen its wings. India has been welcoming new ventures and even are open to foreign investment. The current government of Republic of India has been encouraging foreign investment in all the sectors (Li, Nahar & Fung, 2015).
India has been a land of opportunities as it provides an ease of doing business to the foreign organizations as well. A literate census of the country could also be considered as an asset for the company as they could turn out to be an outstanding workforce (Kiel, 2014).
Boost Juice, being a renowned retail outlet can find various prospects in India as it is one of the largest industry in the country. India is majorly an untapped market which works as a magnet for various retail giants across the globe.
Furthermore, the working population of India mainly lies within median aged people who could be a better target customer for the Boost Juice (Li, Nahar & Fung, 2015). A huge chunk of Indian retail market is unorganized which provides an array of potential market opportunities.
Considering the growth of the country, the disposable income of the census has also increased prompting them to spend for their luxury. Hence, retail industry is not only accelerating in metro cities but also in Tier I and Tier II cities. The purchasing power of the Indian consumers have been growing rapidly (McKeever, 2016).
Bearing in mind the juice market, India has witnessed a slow but steady growth in the same. Several factors could be pointed out such as rise in fruit imports, growth of health consciousness among the people, untapped market potentials and changing consumer patterns.
The market size of the juice industry in India has witnessed an annual growth rate of 20-25% annually. It is estimated that Indian juice industry will reach USD 21 billion in 2018.
Investing in India could turn out to been an outstanding opportunity for Boost Juice as there are many franchise aspirants in the country who generally look forward to invest low and eye high return (Pollard, Chuo & Lee, 2016).
Boost Juice can provide franchise as it is the reason for such a growth in investment in juice bars. Even a smaller kiosk, within a small space can carry out the operating highlighting the brand and carrying out its operations.
As India is a huge market, Boost Juice can use FOFO method to get to a bigger audience and spread its footprint across the country. The organization can also get a much better entrepreneur as the workforce in India is well educated and are able to handle business hassles (Porter & Heppelmann, 2015).
International marketing plan of Boost Juice Company identifies that target consumers within the Asian market have distinct values, purchasing power, customs along with media habits along with understanding the relevance of international brand consistency. Based on the desires and preferences of the target market, the company will customize its food products with having great taste and nutritional benefits (Lee et al., 2015). The company will offer a combination of a superior quality product that is served by energetic and positive individuals in all its stores. Customization of all its fruit juices will be done as per the seasonal fruit available within the Asian market, more specifically within the selected location. Boost Juice Company has considered entering the selected location through franchising. Gradually, the company will offer more product ranges so it is performing well in the product side. The company will also have innovative way of offering its fruit juices as per its target consumers preferences. Customization of the fruit juices will be done in front of the consumers based on their needs and taste. Observing that the number of health conscious consumers are increasing in India, the theme of the Boost Juice Bar will be to promote nutritious and healthy food (Rana et al., 2017). Through offering customized and nutritional fruit juices and snacks, the company will make sure that its focus is not just on health drink and taste but also on developing a fresh and active image.
Boost Juice Company will offer homemade smoothies and juices that will serve to be highly appealing in comparison to ready to drink beverage options generally offered by the juice bars. Moreover, the fruit juices that will be offered by the company will be free from any artificial ingredients that includes high fructose corn syrup, artificial sweeteners and preservatives. From analysis of the Indian fruit juice market it was evidenced that the most popular and traditional juice flavors that are greatly available in the market are apple, orange and cranberry (Rana et al., 2017). However, the company will customize its fruit juices based on emerging demands of the target market in India. This is because of the reason that consumers are interested in highly innovative and less common flavors such as wholesome and vegetable based juices. Moreover, customization of the product will also consider that the existing fruit juices ore healthy through considering use of innovative choices alternative sugars and milk (Sadeh & Kacker, 2018). In addition to that coconut, soy and almond milk can be considered to be used in making fruit beverages. Moreover, nutritional benefits of the juices and smoothies will also be customized to use sweeteners like stevia and agave syrup that can facilitate the company to address needs of health focused consumers.
The communication process would be formed depending on the response process of the customers. This plan would be carried out with the help of certain series of steps, which are elucidated as follows:
Boost Juice Bars could perform joint advertising with other product lines along with focusing on both magazine and newspaper advertising for minimising the overall cost.
Since the organization would be new in the market, it needs to attract attention from targeted consumers towards its products. In this case, advertising would be the most powerful medium for enhancing the awareness of the mass audiences (White, 2015). Newspaper and magazine advertisements would be used one week prior the sale of the products in the market. It would be followed by billboards, road shows and television commercials three days prior to the business launch. The total cost estimated for this tool is $15,000.
When the customers are informed regarding the business launch, they need to be encouraged to try the products. Boost Juice Bars could use sampling due to the lower unit value and shorter purchase cycle of the organization. Sample coupons would be attached in newspapers and magazines, through which the customers could avail a product of their choice free of cost (Tseng & Hu, 2014). The official website of the business would allow the customers to download the coupons as well. In addition, there needs to be bar codes on the coupons for enabling the marketing team to gauge the efficiency of advertisement and coupon. For this particular tool, the organization is expected to incur an amount of $12,000.
An official Facebook group of Boost Juice Bars could be opened for each product line with the customers. The group would provide all the necessary information to the customers along with the procedure of ordering products (Tong, Li & Wei, 2015). Since the issue is associated with the overall brand, public representatives and a special marketing team would be available for the project. After the development of the website, the IT team would work on creating mobile applications for the business to draw customer attention. This platform would cost the business an amount of $18,000.
For enhancing daily use and greater amount of purchasing, a promotional price could be offered to the customers. In this case, the organization would provide free delivery services in the initial period, which would cost $5,000. However, this offer could only be availed after a certain amount of purchase.
The value of the business is expected to perform above achieving the sales revenue of 11%, since it would consider the following factors:
Professional development:
Boost Juice Bars would focus on providing extreme value to the customers to enhance the customer satisfaction level. In addition, it would focus on research and development, which would help the organization to sustain competitive advantage in the market (Smith, & Seawright, 2015). Along with this, more concentration would be laid on advertising, since it would be the most powerful medium for enhancing the awareness of the mass audiences.
Another way through which the business value would be increased above average is to help the customers with greater quality products at lower prices in contrast to its competitors. Quality is the only factor behind the success of the business growth in any operating market (Shabanova et al., 2015). It would spend additional time on planning, organizing and delivering greater quality products.
Enhancing value in the customer lives is extremely significant at the time of thinking lasting business success. In order to enhance customer value, free product deliveries and special customer representatives could be appointed to increase their satisfaction level. When the customers are satisfied, it would help in increasing the sales revenue above the average standard and thus, the profitability level would be increased.
Conclusion
The objective of this report was to explain that as an owner of a boutique marketing consultancy business specializing in financing and one of the company’s clients has expressed interest of turning out to be an owner of the franchise. Boost juice bars was selected as the franchise chain that is a foreign company and will be launched in Australia. It is gathered from the report that Boost juice company offers a wide range of great tasting juices or smoothies that are sold by them that offers convenience along with argumentation of several products. This also deems to improve the needs and changing desires of different consumer groups from all over the world. As the company is focused on the franchise system, it will build shop in busy business area for focusing on international expansion.
It is also gathered from the paper that International marketing plan of Boost Juice Company identifies that target consumers within the Asian market have distinct values, purchasing power, customs along with media habits along with understanding the relevance of international brand consistency. Based on the desires and preferences of the target market, the company will customize its food products with having great taste and nutritional benefits.
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