Discuss about the Fruit Juice Brands Fighting for Shrinking Market.
Boost Juice is an Australian based company which was founded by Janine Allis in the year 2000. The company provides fruit and vegetable juices and smoothies through its exclusive retail outlets. The company has achieved over $ 2 billion global sales since its foundation and has established its market with 350 stores in seventeen countries. The vision of the company is: “Every customer will leave a Boost Juice Bar feeling just that little bit better” (Boost Juice, 2017).
The company was started with the idea to provide fresh juices and smoothies to the customers because Australia did not have any juice bar in the country till 1999 (Boost Juice, 2017). The brand was incepted to provide an option of healthy food the customers so that they can lead a healthy and balanced lifestyle and enjoy a unique experience of Boost Juice Bar (Dias, 2016).
Boost Juice provides products which have nutritional values and have health benefits for the customers. The company uses fresh fruits and vegetables to make smoothies and juices. It has a wide product range of juices and smoothies, which have been categorized as boosters, calories counters for the people who health conscious, boost snacks, protein and energy juices and fresh juice bars.
The Australians have become more conscious about their health and prefer to have healthy food over the fast food and junk food. This concept has been very well grasped by the company by introducing the right product for the consumers.
Boost Juice provides a range of products which are made up using the ingredients fresh fruits and vegetables. It provides low fat smoothies, boosters, juices, crushes, skinny smoothies, super smoothies, indulgence smoothies and customized juice as per the choice of the customer (Boost Juice, 2017).
The company provides a variety of juices which includes two & five juice, wild berry juice, energizer juice and immunity juice. The complete range of juices provides a healthier lifestyle to the customers. Two and five juice is made up of two oranges, three carrots, one apple, and one piece of celery and beetroot with vita booster. Wild berry juice consists of the ingredients freshly juiced pineapple, raspberries, apple, blueberries and strawberries with a booster. Energiser juice comprises of ingredients freshly squeezed orange, banana and strawberries with an energizer booster. Immunity juice is prepared from the ingredients freshly juices watermelon and orange and strawberries with immunity booster (Boost Juice, 2012).
The ingredients of the juices ensure a healthy and balanced life for the customers. The fresh Boost Juice provides a great consumer experience by providing an alternative of healthy fast food product. The juices are prepared under the supervision of nutritionist to ensure the quality and provide fat free juices to the health conscious consumers (Boost Juice, 2012).
Boost Juice Bars have attracted a large audience and supported the growth of the company by establishing its retails stores in the country. The new and innovative concept of Juice Bars captured the attention of the consumer because of the product demand in the market (Boost Juice, 2012).
Australians have become more health conscious due to increasing obesity and other diseases (Pacific Magazines, 2013).They have started preferring fresh juices over sugared drinks to safeguard their health and look better (Jasper, 2014). This has increased the demand for the fresh juices and other healthy food items in the market. The findings of the market survey revealed that around 1.8 million Australians preferred to have juice bars over other sugared drinks in the year 2016 (Australian Food News, 2016). These people look for the drinks which provide nutrients to their body, and boost their energy. The consumers have started avoiding caffeine products and often look for food items which have the appropriate amount of calories (Australian Food News, 2016).
The rising diseases have created a need for the product and the changing perception of the consumers has created a demand for the product in the market.
The consumers are now motivated towards healthier drinks due to rising diseases in Australia.
The targeted customers of Boost Juice are the young teenagers who are very conscious about their health to look better and stay fit (Boost Juice, 2012). The young generation between the ages 13 to 19 has switched their preferences to healthy juices over pizzas and hot chips. The increasing awareness among the youth, which is generally from the education in school concerning the rising obesity and other diseases due to intake of junk food, has also motivated the youth to adopt a healthier lifestyle by including fruit and vegetable juices in their diet (Mason, 2015).
The report would now discuss the factors that influence the consumer behavior and their decision making process to buy the Boost Juice Bars.
Around 25 percent of the country’s children population suffers from overweight and obesity. The country’s obesity levels have gone beyond the level of America (AIHW, 2017). Around five million of the Australian population is obese and the reason for the obesity has been evaluated as the diet structure of Australians (MacBean, 2014). The major composition of an average diet of an Australian is sugar and fat. The advertising of the junk food influences the minds of children to purchase unhealthy food from the market. Overweight and obesity leads to various diseases such as cardiovascular disease, diabetes and cancer. With the rising obesity, the risk of these diseases also increases and the people are unable to manage their chronic diseases (AIHW, 2017).
Overweight and obesity are one of the great concerns for the Australian government. The Australian government has taken initiatives to create awareness among the consumers to switch to a healthier lifestyle and stay fit. According to the Professor Moodie, there is an urgent need to regulate the fast food industry of Australia and put an end to the rigorous advertising to the children (MacBean, 2014).
The increasing health awareness by the Australian government and regulation of advertising of junk food by the government has created the need for a healthy food product which could attract the consumer. The government is also planning to impose sugar tax on the soft drinks and other sugared drinks (National Cancer Control Policy, 2017). The health awareness programs by governments are likely to affect the decision making process of the consumers.
The government control and regulation has compelled schools and colleges to create health awareness among the children through education and programs (AIHW, 2017). The target segment of the Boost Juice Bars are the teenagers, whose decision making process is likely to be influenced by the school education. The children studying in schools and colleges suffer mostly from the problem of overweight and obesity. The education and health campaigns are likely to influence their decision making process of purchasing food products.
Increasing health awareness campaigns has changed the consumer perception
With the rising health campaigns and initiatives by the government, the consumers have become conscious about their health and diseases. The consumers have started preferring the healthy food products over fat and sugared food products.
A beverage survey was conducted to determine the nutrition value of the food items and the Boost Juice Bars were found to be the healthiest food products with high nutrition value. The products such as Coca cola, Lipton ice tea and Red Bull were revealed as the least nutritious food products (Cormack, 2016). The health awareness campaigns have influenced to minds of consumers to adopt a healthier lifestyle. The people have reduced the consumption of soft drinks and other sugared drinks in Australia. Approximately 6.6 million of the consumers were reported to purchase the packaged sugared drinks and the figure has reduced to 5.3 million in the year 2016 (Roy Morgan Research, 2016). The figures reveal that the perception of consumers has changed regarding the soft drinks and other sugared drinks. They have become more knowledgeable and concerned about their health from the increasing health awareness programs by the government.
The changing perception of the consumer ultimately affects their decision making process of purchasing the food products. The consumers perceive the sugared drinks as the least nutritious food products and are switching towards fresh juices. Their changing perception influences them to buy drinks which are good for their health and have low amount of caffeine in them (Roy Morgan Research, 2016).
The teenagers are most likely to be influenced by the changing perceptions because they are very concerned about their looks. They have prefer to have fresh juices for their breakfasts instead of sugared or caffeine drinks (Mason, 2015).
Increasing health awareness campaigns has motivated to adopt a healthier lifestyle
Motivation is another factor that influences the decision making process of a consumer. With the rising health diseases caused by overweight and obesity, the consumers are switching a healthier lifestyle comprising of nutritious diet. The rising diseases such as diabetes, cancer and cardiovascular diseases have alarmed the government of Australia to take measures and actions (National Cancer Control Policy, 2017). This has motivated the consumer to switch to a healthier lifestyle by consuming fresh fruit juices. The decreasing sales of packaged drinks show the reduction of consumption of unhealthy food product (Parker, 2016). The health awareness campaigns have motivated the teenagers to adopt a healthier lifestyle.
The teenagers are very much concerned about their looks and are therefore, motivated to buy fresh fruit and vegetable juices to live a healthier lifestyle.
Boost Juice has successfully established its market through right product, price, place and promotion strategy. The company launched the product at the right time when it was absolutely necessary to introduce fresh fruit and vegetable juices into the market. The changing consumer behavior was the reason to introduce the product. The company has very well utilized the product strategy to establish its brand in the market by providing unique consumer experience.
The CEO of the company Janine Allis has very well captured the requirement of the customer and works on a simple strategy of never lying to the customer (Mills, 2011).
Though, Boost Juice has successfully established its own market by giving the customer what he wants, but the company’s sales decline during the winter season. The customers prefer drinking something hot during the winter season and therefore, they are not attracted towards the Boost Juice Bars. This adversely affects the sales of the company and the company may also incur revenue loss. Therefore, the company needs to strategically introduce new product for the winter season in order to retain its customers.
Boost Juice has limited its portfolio to fruit and vegetable juices and it has an opportunity to expand its portfolio by introducing new product in the market.
The new product would also focus on providing healthier lifestyle to the customers. The product range would be specifically designed for the winter season to increase the sales revenue of winter season by attracting the customers. The idea is to provide healthier drinks to the customers during the winter season by following the love philosophy of Janine Allis.
People tend to prefer hot drinks during the winter season. The studies have proved that consuming hot drinks in winters is more beneficial than cold drinks and help to improve our health (Fleming, 2014). The new product introduced should be beneficial to the customers and encourage a healthier lifestyle. From this analysis, few products have been suggested for the winter season.
Mulled Cranberry Cider, Lemonade Raspberry and Pumpkin Latte are the three products that would be launched in the winter season with the goal to provide healthy drinks to the customers. These drinks are warm and prepared from fruits, vegetables and spices which are necessary to support the immune system of the body.
Mulled cranberry cider is prepared from the ingredients cranberry juice, oranges, honey, cloves, cinnamon sticks, dried cranberries and vanilla extract (All Recipes, 2017). The hot drink is 100 percent fat free and has a great nutritious value. Honey helps to prevent cancer and cardiovascular diseases through its antioxidants and flavonoids content. It also controls gastrointestinal disorders and helps to reduce ulcers through its anti-bacterial and anti-fungal properties. It is a natural source of energy and is a great energy booster. It also provides relief during cough and cold (Herrington, 2012). Another ingredient cloves has number of health benefits such as fighting against cancer and controlling diabetes (Organic Facts, 2017). Its antimicrobial properties help in digestion and preserve the quality of bone (Organic Facts, 2017). Further, cinnamon has great medicinal properties and is used as an antioxidant to protect the body. Its anti-inflammatory properties support immunity system and help to fight infections and diseases (Leech, 2017). Mulled cranberry cider would prove to be a great product for winters and would encourage healthier lifestyle.
Lemonade raspberry would be prepared from the ingredients lemonade mix, raspberry and tea mix (Taste of Home, 2017). The drink has numerous health benefits for the adults. Its antioxidant property offers great health benefits. It is a great source of vitamins, fiber and ellagic acid. The drink helps to fight against cancer. The drink also helps to reduce weight of the body through its antioxidant property (Organic Facts, 2017).
Pumpkin lattes would be prepared from different spices cinnamon, ginger, nutmeg and allspice (Mikuta, 2017). The drink is one of the healthiest drinks and develops immunity to fight cancer, helps to reduce blood pressure, acts as an anti-inflammatory and supports digestion (Mikuta, 2017). Pumpkin helps to improve eye sight, reduces weight and blood pressure by supporting the immune system of the body (Mikuta, 2017). It is a warm and healthy drink which would motivate people to live a healthier life.
Boost Juice has already attracted the youngsters through its great range of juices and smoothies. For the winters, the target audience would comprise of old people, who suffer from the problem of obesity, cancer and heart diseases. The drinks have been prepared especially for this target audience. Therefore, the promotional activities would have to be created so that the old people are inclined to buy these drinks.
The introduction of the product in the market would attract the old people who consistently look for healthier food choices. From the study and analysis, it has been concluded that Australians are suffering from the problem of overweight and obesity and this has become one of the great concerns for the government because obesity leads to diseases such as cancer and heart diseases. The government is taking initiatives to increase health awareness among the Australians.
Boost juice would benefit from the government campaigns and initiatives to promote healthier lifestyle. The people are likely to be affected by the government activities and become more health conscious. The rising obesity has already alarmed the users to switch to juices and other healthier drinks. The people largely suffer from the problems of cancer, high blood pressure, cardiovascular diseases and other diseases (Baker IDI, 2012). Approximately 1.7 million people suffer from the disease of diabetes in Australia. The suggested hot drinks would attract large audience from this segment and would increase the sales in winter (Diabetes Australia, 2015).
Conclusion
The report has successfully discussed and analyzed the consumer behavior for the brand Boost Juice. Boost Juice offers the customer a healthier lifestyle through its innovative products such as Boost Juice Bars, Protein and Energy Juices, Calorie Counters and others. The brand has successfully established its market by understanding the need and requirement of the customer. A customer’s decision making process is affected by many factors such as personality, need, motivation, perception and others. The factors influencing consumer behavior were identified as need, consumer perception and motivation. The rising obesity and diseases in Australia created a need for the product in the minds of consumers. People started to look for healthy food choices to maintain their health. The next factor was changing consumer perception. The consumer’s perception began to change regarding the junk food and sugared drinks because of rising overweight and diseases such as diabetes. The people started preferring health drinks such as juices and began to avoid sugared drinks which have been found to be least nutritious. Further, the people were motivated by the health campaign organized by government.
The report suggests ways to improve marketing strategies using product and promotion of marketing mix. Introduction of three hot drinks which have been prepared from nutritious ingredients would attract the old people who suffer from heart and sugar diseases.
References
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Fleming, A. (2014). A little warmth goes a long way – the science of hot drinks. The Guardian. Retrieved from: https://www.theguardian.com/lifeandstyle/wordofmouth/2014/oct/28/hot-drinks-science-tasting-notes
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