Marketing Management and Digital Communications of Nexba Beverages
Assessment requires students to work individually on their selected new product or service to create a comprehensive strategic marketing plan.(In my Case It is “Nexba Beverages”) .
Title page, table of contents, executive summary and introduction (3 marks): – includes a title page, table of contents and executive summary that are professionally written and organized. The executive summary contains the key points of the whole report in 3-5 paragraphs written in single page. Introduction section should provide background information of the product or service (Nexba Beverages). Specifically, you will be assessed on the following aspects:
- Executive summary
- ) Introduction
- Situation analysis recap
Discussion of the segmentation, targeting and positioning approach (10 marks): A discussion on the potential customer segments for your product or service and which one(s) you wish to target with good justifications. Also, discuss the desired positioning for the product or service. Develop a clear positioning statement. Specifically, you will be assessed on the following aspects:
- Problem statement
- Discussion of potential market segment
- Discussion of target market and positioning
Set 3 marketing and 3 financial objectives: Provide realistic marketing and financial objectives. Specifically, you will be assessed on the following aspects:
- Marketing objectives and goals
- Financial objectives and goals
Formulation of a detailed marketing mix strategy (10 marks): should cover specifics of the product, price, promotion and place aspects. Specifically, you will be assessed on the following aspects:
- Marketing mix – how are they to be applied?
- Marketing strategy proposed implementation
Budget allocation for promotion mix: Should provide the media and budget allocation for each of the promotional mix elements and mapped against the objectives of the promotional mix elements. Put special emphasis on digital communications strategies.
Conclusion and reference (3 marks): Includes a summary of the key points of the presentation. Provide a list of at least 15 (fifteen) citations and references of some published academic and research papers, textbooks and authentic Web sources. Referencing should follow the APA style.
Evidence of research : The quality and integration of research in the writeup to support key points. This should include theoretical and empirical research findings from a combination of academic journals and textbooks. Any website which is used to find statistical information is also considered as part of evidence of research but not part of academic journal or textbooks. Useful websites include Australian Bureau of Statistics, Austrade, CIA Factbook, Doing Business and any state or commonwealth authority websites.
Mechanics : Use of headings, sub headings, cohesion of paragraphs were of high quality. Grammar, spelling and punctuation are of exceptional standard
The report aims to illustrate the marketing planning of Nexba Beverages. It elaborates the new strategies of marketing which will assist the business organization in planning and execution by Nexba Beverages for retaining and attracting potential and existing customers. It facilitates the analysis of environment of the business organization by using various frameworks.
There have been analyses of the internal environment along with customer analysis of the company. Further, there has been competitor and industry analysis in order to devise a better marketing strategy for the new product and service of the beverage company. There has been illustration of the segmentation, targeting and positioning of the customers who would assist in making better strategies for the marketing of the new product and service.
The strategies of marketing are then highlighted along with stating the allocation of budget for different components of the marketing strategies.
Nexba is a Beverage company that is based in Australia. The company has been working towards its objectives of bringing a revolution in the conventional soft drinks and beverages .The business organization has been bringing revolution in the industry of food and beverages by introducing lemon. Orange and Cola flavored sparkling infusions that are free from natural sugar. Nexba beverages was founded in the year 2010 by Trioy Douglas and Drew Bilbe with an objective of transforming the lives of customers by manufacturing natural beverages which assist customers in making good and healthier lifestyle choices.
The business of Nexba began when Drew was motivated of creating a low calories and natural ice tea which he could share with family and friends when he was in Mexico (Armstrong et al., 2015). This resulted in the evolution of the new trends in the beverages that was labeled to be produced by the company. Currently, Nexba is regarded as the first company in the market which manufactures alternative of beverages which are free from natural sugar. The company has also been successful to the extent that it has been provided with space for sales in hundreds of stores which include Coles Express, Coles Super markets, 7-Eleven, United Petroleum, Caltex Star Mart, and Chemist Warehouse. Nexba Beverages would be manufacturing caffeine free drinks for the customers who are basically oriented towards having a fit and healthier lifestyle. The drink will be manufactured for the customers who prefer to have caffeine free drinks due to reason of medical health conditions apart from the customers who are fitness freak (Mix & Brand, 2017).
Problem Statement: In order to break the monotony of options provided by Nexba Beverages in regards to the drinks, there has to be a introduction of a new drink which also stays in terms of health concerns of the customers. Nexba Beverages would be manufacturing caffeine free drinks for the customers who are basically oriented towards having a fit and healthier lifestyle. The drink will be manufactured for the customers who prefer to have caffeine free drinks due to reason of medical health conditions apart from the customers who are fitness freak (Mix & Brand, 2017).
Segmentation: For obtaining success in the new business venture of Nexba Beverages in regards to the new caffeine free beverage, there has to be proper and effective segmentation, targeting and positioning conducted by the management of the business organization. In accordance to CIA act book, Australia is one of the richest countries in regards to food and beverages providers in the world (CIA - The World Factbook, 2018). According to Feenstra & Casero Ripollés (2014), segmentation would encompass the process of categorizing the entire Australian market along with other relevant potential markets into various groups that would have potential customers having same needs and characteristic that presents the probability of exhibiting similar behavior of purchase (Feenstra & Casero Ripollés, 2014).
The objective of the segmentation for the new caffeine free drink would be to analyze and gain comprehension of the market along with the identification of the opportunities for the growth of the business through the new product of Nexba Beverages. This would also include the development or use of competitive edge for capitalizing on such opportunities. The segmentation for the introduction of the new caffeine free drink of Nexba Beverages will conducted on the basis of the geographic segmentation the launch and operation of the new caffeine free drink of Nexba Beverages will be conducted in the geographic markets of Australia and other relevant markets where the beverage company is intending to expand its business.
As per Keller & Kotler (2016), each zone in the Australian markets will be divided into categories and priorities will be given to the areas which have high concentration of sportspersons and athlete. There is an increased benefit for Nexba Beverages as Australia is one of those regions in the world which conducts sports events at a large scale (Keller & Kotler, 2016).There will be increased concentration of the sportsmen and athletes who would prefer to consume the new caffeine free drink manufactured by Nexba Beverages. The place of consumption would be also included among the aspects of segmentation for Nexba Beverages. The places such as restaurants, cinemas, railways stations, training center for sports, cafeteria near gyms, etc. would be ideal places for the conduction of business of new caffeine free drink by Nexba Beverages. Taking demographics into the concentration, the factor of age will also be considered for the marketing strategies of new caffeine free drink by Nexba Beverages (Kotler, 2015).
Targeting: Nexba Beverages would target the young customers and the customers of the younger age group who would be interested in sports or having a healthy lifestyle. The customers who will be interested to have and make a healthier choice in consumption and want to have caffeine free products and drinks would be targeted for the development of marketing strategies and plan for the new caffeine free products (Lapidoth, 2017).This would include individuals who would be working as well as non-working in any kind of field. The basic aspect that would be taken care of while devising the marketing strategy would be making better and healthy choices of drinks.
Positioning: The strategic marketing plan of Nexba Beverages for the new caffeine free drink would be based on the provision of refreshment and quenching thirsts along with providing increased energy flow to the body. The product will be associated with providing a delightful experience for the customers who opt to have a caffeine free life as well as have an active lifestyle. The product that will be made caffeine free will be also marketed as of high and consistent in quality (Meffert, 2013).
Marketing objectives and goals
The objectives of the marketing strategy that would be formulated for the new product and service of Nexba Beverages would include the key aspect of reaching out to maximum number of customers and transform them into regular customers of the company. As per Baron (2013), the goal of the marketing strategy would include the provision of refreshment to the potential and existing customers in the entire world along with creating value, and difference (Baron, 2013). The objectives of the marketing strategies would be to inspire moments of happiness and optimism. The objective of the marketing strategies for the new, caffeine free drink manufactured by Nexba Beverages is to appeal and promote healthier options for drinks for the customers.
Financial objectives and goals
The goals of the marketing strategy and planning of the new caffeine free drink by Nexba Beverages would be to obtain cost advantage over competitors in the domestic a as well as in the international market. According to Bresler & Lubbe (2014), the goal of the marketing strategy for the caffeine free drink would towards the orientation of gaining breakeven point in the business of the new drink in the shortest timeframe (Bresler & Lubbe, 2014).
By the inclusion of this new caffeine drink in the pipeline of business of Nexba Beverages, the business organization will be able to gain more productivity and profitability for the overall company. The goal of having increased financial capabilities for Nexba Beverages will be achieved.
There has been significant downtrend that has been observed in the demand and use of carbonated and caffeine beverages. This has been more prevalent among the customer segment of youth how are becoming more conscious towards their fitness and health. This has resulted in decline in the consumption of drinks and beverages that contain significant amount of natural sugar and caffeine. There has been a surge in the world regarding use of anti-sugar products due to increasing health concerns. Nexba Beverages has been providing customers in the market of Australia with the beverages and drinks that are free from natural sugar in three different products such as Lemon, Orange and Cola (Chernev, 2018).
The company identified the fact of increasing dependence of the customers in coffee as a beverage that boosts adrenaline flow to the body before workout. With many benefits of health, customers were identified to rely on coffee which would also result in addiction due to the presence of caffeine in high quantities. Thus, the business organization realized the need of manufacturing a drink that would be free from caffeine and would provide the similar refreshment level to the consumers. This new caffeine free product will assist the customers and consumers with increased activity in regards to maintenance or carrying out of activities of health and fitness.
The internal analysis Nexba Beverages has to be conducted for gaining necessary insights into the strategic capabilities that the company has. It is also necessary for gaining proper comprehension about the company which will assist in creating sustainability in approaches of business as well as gaining competitive advantages. By conduction of SWOT analysis, it will be easier and more convenient for conducting the internal analysis of the company.
Strength : The strength of Nexba Beverages has been centered on the formulation of the drink which has been providing a competitive edge to the business organization as compared to the other in the market. The drinks that Nexba Beverages provides to its customers are free from natural sugar which makes the drink healthy as compared to the drinks provided by other competitors. Hence, the brand name of Nexba Beverages will assist in marketing the new caffeine free drink to the potential customers. Due to the increased demand of the drinks and beverages of Nexba Beverages in the market, there has been increase in the economies of scale. This also proves to be one of the strengths for the company (Niu & Ho, 2014).
Weakness: The weakness of the company can be regarded to the limited choices or short range of products and drinks which promotes a feeling of restriction to the existing s well as the potential customers. Hence, the addition of new caffeine free drinks the product range would add a variety in the product range that would also appeal to the customers.
Opportunities: In regards to opportunities, Nexba Beverages can take advantage of the growing industry of fitness and health which is insisting people to buy food and beverages that are healthier. Having caffeine free drinks will be the choice that customers who are conscious regarding their health would opt for which projects a great and expanding market for Nexba Beverages as opportunity.
Threat:The threat for Nexba Beverages like Coca Cola and Dr Pepper Snapple can pose significant implications in regards to the introduction of caffeine free drinks and beverages (Ramaswamy & Mosher, 2013).
Marketing mix strategy The marketing mix strategy for the new caffeine free drink manufactured by Nexba Beverages would include the analysis of the aspects such as products, place, price, and promotion.
Products: The product in this regard would be referred to the new drink that is caffeine free. The drink will be marketed to be exclusively for sports men and athletes who seek for refreshment drinks but feel constrained due to the less to negligible options in the specific section of products. The products of caffeine free drink by Nexba Beverages would facilitate these customers for having a pleasant refreshment experience (Royle & Laing, 2014).
Place: The place where the selling of the caffeine free drink will be conducted will be in the cafeterias and outlets that are located near to the stadiums or gyms. The product will be sold in the retail outlets as well as in the restaurants where people who are conscious of their fitness and health shall be able to avail the product in a convenient manner. The drink will also be sold in the canteen of colleges and institutions where young customers can easily avail the drink.
Price: The price of the caffeine free drink will be strategized in accordance to the affordability of the targeted customers. A major part of the targeted customers are the youth who happen to look for moderately priced products in any regards. Hence, the price of the caffeine free drink by Nexba Beverages will be moderately priced (Viterbi & Omura, 2013). However, the pricing of the drink or caffeine free beverage will be fixed by taking the competitiveness of the other drinks in the market. The restrictions by the government’s m the involvement of other manufacturing costs as well as the prices charged by other competitors will be considered while making decisions for the price of the caffeine free drink by Nexba Beverages.
Promotion: The promotional strategy for the caffeine free beverage of Nexba Beverages would include the aspects of promotion of sales, advertising, personal selling, technological change, public relation, etc. The promotion of the caffeine free drink would be done through increased focus in aggressive marketing via ad campaigns. These will be conducted by using the platform of media such as online ads, online ads, sponsorships, print media, etc. Nexba Beverages shall also engage in the sponsorships programs and events which would be majorly focusing on the sports events (Von Elbwart, Wengerter & Yoshii, 2013). It can make marketing and promotional activities by selecting a sportsman or renowned athlete for having greater effectiveness in the promotional strategies for the caffeine free drink.
Marketing strategy proposed implementation
Special incentives will be provided to the retailers and distributors for promoting the new caffeine free drink. The promotion of the caffeine free drink will be done in the retailers by placing refrigerators with hoardings of the Nexba Beverages for having an effective advertisement of the brand. There will be provision of emphasis on the shelf spaces in the retail outlets which will generate increased visibility of the caffeine free drink by Nexba Beverages. The beverage company would also engage in different activities corporate social responsibilities that would create a promotional environment for the beverage company along with addressing the social and environmental issues across the market (Wang, et al., 2015).
Budget allocation for promotion mix
The budget allocation of the promotion mix would encompass the analysis of marketing mix of the caffeine free drink by budget allocation for promotion mix along with making the forecast of sales. Zimmerman & Blythe said that this will assist in making budget allocation for promotion mix in having clear comprehension about the conditions that would support to discourage the marketing of the caffeine free drink in the near future (Zimmerman & Blythe, 2013). The sales will be forecasted in units other than the volume of currency. The sales have to be forecasted by considering the classes of the customers and the territories. Further, the affordability of the caffeine free drink has to be checked against the investment that the company will be making towards the manufacturing process. The costs spent on lifecycle of the product along with the quality of the promotional campaign for the caffeine free beverage.
The report highlighted various aspects of marketing strategies of a new product manufactured by Nexba Beverage. There has been an illustration of marketing mix of the new product that provides in-depth insights into the plan that the company would make for having better business in the market which provided valuable information. Further, there has been elaboration of the budget allocation as well as analysis of various business elements that are vital for the structuring of business strategies in regards to marketing approaches of Nexba Beverages.
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