This report describes the marketing mix strategies for the introduction of a new 100 percent natural and fat-free energy drink that is herbal drink by the Boost Juice Company. It also explains the importance of introducing such a product in a market already filled with big competitors.
Jannie founded the Boost Juice Company in Australia in the year 2000. The main product of the company is juice bars, which manufactures juices that are at par with the health needs of the target market. Within four months of its opening in Australia, it had opened 26 outlets in USA (Juice, 2017).
The focus here is on the introduction of a non-caffeinated and a 100 percent natural energy drink by Boost Juice. The below section describes the marketing mix of the new product.
The energy drink of Boost Juice will contain no caffeine and taurine. The focus will be to make the drink fully natural and highly nutritional. It will be 100% fat-free. It will be delicious. It will be available in various flavors like Mojito, Martini, and Tequila Sunrise along with the original flavor. The designing of the pack will be attractive.
The product life cycle consists of four stages, the introduction stage, the growth stage, maturity stage and decline stage (Babin and Zikmund, 2015).
Figure 1: The product life cycle
(Source: Kotler et al. 2010)
The product is at the Introduction stage (Kotler et al. 2010). The focus of Boost Juice here will be to establish a market and raise demand for their energy drink. The impact of this stage on the 4Ps of marketing mix is as follows –
Product – Boost Juice will give more focus on the energy drink for branding, the betterment of the quality and so on because the first impression is the last impression.
Price – The Company will decide on the pricing. It can use skimming pricing with the intention to cover initial cost or else can use penetration pricing by keeping the initial cost low for capturing the market.
Place – The Company should use selective strategies for distribution so that it does not harm the product.
Promotion – Promotion is very important at the introductory phase (Ataman et al. 2010). Boost Juice needs to use attractive and effective promotional strategies to position its new product in the market.
Branding is a very important component for marketing of a new product. There are various popular energy drinks available in the market. Therefore, to make a mark among big competitors this product of Boost Juice should have extraordinary branding strategies. Branding strategies should also remove the difficulties that this drink will face due to late entry into already existing market of energy drinks. There are various misconceptions regarding energy drinks, which have to be removed through proper branding strategies. Branding should be such that this drink can capture the growing market of energy drinks.
Boost Juice is a very popular brand in Australia. This is an intangible asset of the company, which will have psychological and financial value to the branding of this new product. The brand equity will have benefits on the new product (Keller et al. 2011). The brand equity models like BAV, BRANDZ and Aaker will help in the branding of the energy drink.
BAV Model
This model establishes the degree of differentiation of the new product with the existing products. Here the energy drink is non-caffeinated and contains no taurine like other energy drinks. It will also find out the relevance for the introduction of this product, the popularity and esteem for the brand among customers (Chrysochou, 2010). The above discussion already stated that Boost juice is a very popular brand in Australia and people has a great respect for this brand for is genuine products and services.
Aaker Model
This model has ten attributes that assess the strength of a brand (Kotler et al. 2010). The attributes are differentiation, satisfaction, perceived quality, popularity, perceived value, brand personality, organizational associations, brand awareness, market share, and market price. Boost juice as a brand stands fit for all the variables.
BRANDZ Model
The variables of this model include bonding (do the customers love the brand), an advantage over other brands, performance, relevance and presence (Chrysochou, 2010).
The brand ambassador also plays a big role in branding a certain product. The new product of Boost Juice is an energy drink and hence a big sports personality (e.g. football player Ronaldo) can act as a brand ambassador for this product.
Packaging attracts customers for buying the product (Luan and Sudhir, 2010). Boost can package this product in airtight containers having hourglass black bodies with the name of the product and its logo is written over it in orange and white combination.
The label on the energy drink bottle of Boost Juice will contain the name of the product written in orange and white combination. The logo will be the sign of lightning in blue color. It will stimulate the emotions of excitement and youth.
Performance: It involves the various characteristics of the product, which makes its performance better. The energy drink of Boost Juice will be non-caffeinated and taurine-free. Hence, it will be highly nutritional (Sterne, 2010).
Features: It refers to the extra characteristics of a product along with the basic character. The energy drink of Boost Juice will be available in different flavors like Mojito and so on along with the original one.
Reliability: It is the trust that consumers possess on the benefits of a product. The Boost Juice energy drink is highly reliable because it is 100 percent natural with no caffeine and taurine and has no preservatives.
Conformance: It defines the degree to which the quality products meet the set standards. This energy drink will provide all the benefits that available energy drinks provide in a natural and healthy way (Achrol and Kotler, 2012).
Durability: It refers to the period of the durability of the product before a replacement becomes inevitable. Boost Juice will focus on improving the quality of the energy drink from time to time to increase its nutritional value and hence there will be no need for replacement
Serviceability: This refers to the promptness with which the organizations resolve issues related to product breakdown. The Boost Juice is famous for its smooth services and excellent customer care. Hence, the consumers of its energy drink can be assured that the company will give importance to their complaints and replace their container if anything goes wrong (Luan and Sudhir, 2010).
Aesthetics: It refers to the impact that a product has to a consumer through its looks and tastes. As already discussed, the looks of the energy drink container will be very attractive with black hourglass body and the name written in orange and white with a blue lightening logo. The drink will be delicious too and will be available in different flavors.
Perceived quality: It is the perception that consumers posses with relation to a certain brand. As Boost Juice is a very popular and trusted brand, consumers will perceive that the quality of their new energy drink will also be outstanding (Sterne, 2010).
|
Width |
Energy Drink |
|
Depth |
Original, Mojito, Martini, and Tequila Sunrise |
Table 1: Depth and Width of the new energy drink
The augmented services that Boost Juice will provide through the launch of this product are focusing on the improvement of the quality and taste of the energy drink, making the drink healthier, making the packaging and labeling more attractive through constant research and creativity.
V, Mother, and Red Bull are the major soft drink brands of Australia, with Red Bull leading the market. These brands are growing at double-digit rates for the past three years (The Australian, 2017). Hence, to introduce a new energy drink in this highly competitive market, Boost Juice has to be very careful in developing pricing strategies. The Company needs to follow penetration pricing strategy for conquering the market. Once the company gains momentum in sales of their energy drink, they can slowly increase their price to increase their profit.
|
Energy Drinks |
Price of 250ml can |
|
V |
$2.10 |
|
Mother |
$2.60 |
|
Red Bull |
$2.75 |
Table 2: Price of popular energy drinks
(Source: The Australian, 2017)
A market survey shows that majority of the population is willing to pay not more than $1.75 in energy drinks. Hence, Boost Juice can keep the introductory price of their energy drink at $1.75.
Distribution chain or the channel is the chain of intermediaries passing the product down the chain until it finally reaches the customers (Rosenbloom, 2012).
. Boost Juice will follow a consistent distribution channel as followed by other companies with a number of intermediaries. The plan is to sell the products directly in the company’s outlets and indirectly via the agents, wholesalers, and retailers.
The type of intensity of distribution for the new energy drink of Boost Juice will be intensive. This strategy makes use of the highest number of channels available for distribution and the highest volume available in each channel (Thombs et al. 2010). Boost juice will identify the maximum no of distributors, agents, and direct selling opportunities, which can justify their sales.
Retailers are very important in any distribution channel. The retailers help consumers to get required goods at one place (Verhoef et al. 2015). The consumers of health drinks are mostly young people aged between 18-25, college students, athletes, working people and so on. The health drinks are mainly popular in urban areas where people prefer shopping in retail outlets. Hence, Boost Juice can use the retail outlets hugely for marketing and popularize their new health drink.
The Boost Juice energy drink has already huge competition in the market. Hence, the Company needs to undertake every possible advertising and promoting mediums for popularizing their brand. The below table describes the IMC tools the company can use for promoting their energy drink.
|
Advertising |
Television – Advertising on popular TV channels like 9Gem, 7flix, TVSN, Prime7, shop tv, SBS, Food network and so on. Radio – Advertising on popular radio channels like TripleJ, ABC Classic FM, 2BL, KICK AM, 2KY, One – FM. Bill Board Advertisements Magazines (Porcu et al. 2012) |
|
Direct Marketing |
Boost Juice can distribute free samples to colleges by giving 100 free samples to students at college premises once in every week for the first month. They can also sponsor college events and sports for distributing free samples (Nickell et al. 2011) . They can organize various sports events like a marathon for promoting the energy drink. They can develop partnerships with gyms, movie theaters, restaurants to carry on their product. |
|
Internet Marketing |
Boost Juice can use their website for promoting this new product. They can also use social media websites like Facebook, Twitter for advertising |
|
Sales Promotion |
Boost Juice can give discounts to retailers and stores. They can get shelves in the eye-catching position of customers in stores and retail outlets. |
|
Public Relations |
As Boost Juice is a popular brand, they can make use of mouth advertising. People are always prone to try out new things of popular brands. Hence, when someone consumes the new drink and finds it tasty, they will advise others to try it. The Company can also invest in social causes to promote their product (Nadeem et al. 2011). |
|
Personal Selling |
The Company can appoint sales person representing the company who will communicate, sell and provide service for the new energy drink. |
The Medical Journal of Australia reported an increase in caffeine intoxication due to energy drink consumption in August 2012 (Healthyeating.sfgate.com, 2017). The side effects of caffeine consumption include headaches, insomnia, rapid heartbeat, and nervousness. There are serious side effects of caffeine intake like arrhythmia, vomiting, seizures, disrupted sleep patterns and increased blood pressure. The existing energy drinks are high in sugar content containing up to 35 grams of sugar per serving, which is high above the recommended amount of added sugars causing obesity (Healthyeating.sfgate.com, 2017). Hence, the decision of Boost Juice to introduce a 100 percent fat-free and non-caffeinated energy drink is surely a good idea. If the Company can implement this idea following proper marketing mix strategies as discussed, then this product will be a sure hit.
References:
Achrol, R.S. and Kotler, P., 2012. Frontiers of the marketing paradigm in the third millennium. Journal of the Academy of Marketing Science, 40(1), pp.35-52.
Ataman, M.B., Van Heerde, H.J. and Mela, C.F., 2010. The long-term effect of marketing strategy on brand sales. Journal of Marketing Research, 47(5), pp.866-882.
Babin, B.J. and Zikmund, W.G., 2015. Exploring marketing research. Cengage Learning.
Chrysochou, P., 2010. Food health branding: The role of marketing mix elements and public discourse in conveying a healthy brand image. Journal of Marketing Communications, 16(1-2), pp.69-85.
Healthyeating.sfgate.com. (2017). Healthy Eating | SF Gate. [online] Available at: https://healthyeating.sfgate.com [Accessed 18 May 2017].
Juice, B. (2017). Boost Juice. [online] Boostjuice.com.au. Available at: https://www.boostjuice.com.au [Accessed 18 May 2017].
Keller, K.L., Parameswaran, M.G. and Jacob, I., 2011. Strategic brand management: Building, measuring, and managing brand equity. Pearson Education India.
Kotler, P., Kartajaya, H. and Setiawan, I., 2010. Marketing 3.0: From products to customers to the human spirit. John Wiley & Sons.
Luan, Y.J. and Sudhir, K., 2010. Forecasting marketing-mix responsiveness for new products. Journal of Marketing Research, 47(3), pp.444-457.
Nadeem, A., Rashid, H. and Niazi, S.A.K., 2011. Brand management, what is next? Word of mouth as a 6th element of promotional MIX and IMC. Interdisciplinary Journal of Contemporary Research in Business, 2(12), pp.659-666.
Nickell, D., Bettina Cornwell, T. and Johnston, W.J., 2011. Sponsorship-linked marketing: a set of research propositions. Journal of Business & Industrial Marketing, 26(8), pp.577-589.
Porcu, L., del Barrio-Garcia, S. and Kitchen, P.J., 2012. How Integrated Marketing Communications (IMC) works? A theoretical review and an analysis of its main drivers and effects/¿ Cómo funciona la Comunicación Integrada de Marketing (CIM)? Una revisión teórica y un análisis de sus antecedentes y efectos. Comunicación y Sociedad, 25(1), p.313.
Rosenbloom, B., 2012. Marketing channels. Cengage Learning.
Sterne, J., 2010. Social media metrics: How to measure and optimize your marketing investment. John Wiley & Sons.
The Australian. (2017). The Australian. [online] Available at: https://www.theaustralian.com.au [Accessed 18 May 2017].
Thombs, D.L., O’Mara, R.J., Tsukamoto, M., Rossheim, M.E., Weiler, R.M., Merves, M.L. and Goldberger, B.A., 2010. Event-level analyses of energy drink consumption and alcohol intoxication in bar patrons. Addictive behaviors, 35(4), pp.325-330.
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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