Situation analysis: PESTLE analysis
Discuss about the Marketing Strategies Of Nexba Beverages.
This assignment is based on Nexba beverages of Australia. The aim of this paper is to design a marketing plan for the particular company, which was established by two individuals. This plan will focus on the contextual analysis and the major problems faced by the company in the market. A detailed analysis will pave the way for potential solutions to the problem. It will be significant for the company to recognize different segments of the market, based on which the company can increase its sale. Positioning of the company products also holds an important part as it will offer a competitive price of the products to the customers (Ambat et al., 2017). Moreover, the plan will highlight on the promotional mix and different strategies that will be effective for the company to make an established position in the competitive market.
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P- Nexba beverages generate such products, which are under the norms and policies of the government and the customers easily like the products. Australian labor laws are also designed in a sternly so that the employees get the scope to work in a proper environment. It further leads the company to carry out their business effectively (Armstrong et al., 2015). |
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E- The company has been successful in supplying and distributing their products evenly throughout Australia and therefore, they could increase their profit margin. One significant advantage of this company is that they take care of the customer preferences to evaluate the market demands. The products manufactured by Nexba beverages have created awareness and alert among the customers regarding their products in the market (Barce et al., 2017). |
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S- The products of Nexba beverages are available within Australia by following the norms, policies and custom present in the country. As the company mostly manufactures health drinks, therefore it has resulted in raising the demands of the specific products in the market. The reason behind this is that the company has adopted an improved understanding of the customer preferences related to their health and well- being. It has been beneficial in manufacturing products as per the customer preferences of the specific country (Culley et al., 2017). |
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T- Nexba beverages have come a long way to modify and develop their products within the competitive market. They have been able to do so by adopting the innovative and recent technologies and it helped in increasing their productivity. By using these latest technologies, the company was benefitted by reduction in cost, which led to rapid increase in output level (Fine, 2017). |
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L- The legal policies and procedures existing within Australia are strictly followed by Nexba beverages so that they do not fall in the trap of any legal misdoings. Thus, the company has the scope to work in a better environment, which will lead to increase in productivity. |
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E- Nexba beverages did not fail to consider the environmental factors necessary for the company. By considering the environmental factors, the company has the scope to supervise the extent of pollution in the country. As the company makes use of water resources to large extent therefore, the underlying benefit is felt by taking care of this resource. It provided a sustainable advantage to the company and they could earn good image in the market. |
The strength, weakness, opportunities and threat of the company can be tabulated as below-
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Strengths- § Way of product manufacturing § Natural ingredients are used instead of sucrose § Authenticity in beverage is maintained § Extensive advertising by the company § Strong market presence § Loyal customers § Improvement in brand image § Increased customer satisfaction (Koskinen, 2016) |
Weaknesses- § The available resources are not used properly § The company is losing its popularity in the market § There is strong competition from other brands such as Coca- Cola and PepsiCo § They followed the same strategy of using natural ingredients § The competitors own large market share |
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Opportunities- § The company manufactures products as per customer preference § Attract potential customers and retain the existing ones § Diversified products will provide additional alternatives to the customers § Spreading in new markets will be helpful in introducing new products § Improvement in economy in the new markets |
Threats- § Tough competition from Coca- cola and Pepsico § Customers will not switch their brands § Sourcing of raw materials is reduced due to the suppliers being attracted to the rival companies (Kotler, 2015) |
The primary competitors of Nexba beverages are identified to be Coca- cola and PepsiCo and they have established themselves in the Australian market for longer time than Nexba. Due to this reason, they are at an advantageous position than Nexba in terms of customer loyalty. The competitors’ products in the market are liked by the customers and they are gaining profit as an outcome (Kuazaqui, 2015). Price is a key factor for Nexba in comparison to the competitors. They can lower the price for their products in order to increase demands among the customers and gain competitive edge in the market.
According to Lidstone & MacLennan (2017), the analysis of the stakeholders of Nexba beverages will draw attention towards the role played by the stakeholders in making the company successful in the market. One of the prominent stakeholders of the company is the suppliers who supply raw materials so that the production can take place successfully. It is their duty to provide a reasonable price for the raw materials so that the products are available in the market at a competitive price. Customers are another category of important stakeholders for the company as they are responsible for increasing the profit of the company by purchasing the products of Nexba beverages. The opinion and feedback of the customers regarding the products will be effective in modifying the products as per the customer preferences.
A severe problem that Nexba beverage is currently facing is a tough competition from the rival companies such as Coca- cola and PepsiCo. These two brands are successfully established in the Australian market for a long time and therefore, they are well- acquainted with the market structure. This is because they got the scope to study and do a background research on the market criteria before setting up their business. Moreover, the rival companies have introduced similar products without any additional sucrose in order to provide tough competition to Nexba. The company is also facing problem in terms of marketing and sales as they have failed to implement suitable strategies. Nexba needs to focus on resolving these problems and find an appropriate marketing strategy, which will lead to increasing awareness among the Australian customers (Macarthy, 2018).
SWOT Analysis
Market segmentation is an important factor in increasing the productivity of the company in the market. It holds a significant position in sending the products directly to the customers within the target population as a strategy for increasing the sale of the company. It is important for the company to do a thorough research on the target market, which will be an alternative to gain profit.
Demographic- As per Miles (2014), the segmentation based on demography should focus on income range, age, religion and gender of the population in order to pick the appropriate customer for whom the product is manufactured. The company will be beneficial in this way by gauging the customer needs and wants and modifying the company products accordingly.
Behavioral- The segmentation on behavioral attitudes will be helpful in seeking for the perfect population who will be attracted to the products of the company by influencing their buying behavior. This particular segmentation is beneficial in delivering the products to the right customers. The products of Nexba beverages are aimed at those customers who are health conscious and want to stay fit and healthy. The beverages of Nexba consist of healthy ingredients without any additional sugar, which is best fit for the customers looking for health drink (Mohammed-Eldeeb, Fawzy & Saed, 2015).
Psychographic- The market segmentation that is associated with the psychograph of the customers will help the company to understand the lifestyle of the customers so that they can manufacture products as per customer preferences. Understanding the customer requirements by studying them well will be helpful in increasing the market supply too. In addition to supply, the sale of the product will also increase in the market.
Geographic- market segmentation based on the geographical location of the customers is dependent on the areas where the customer is situated and the product needs to be delivered to that location accordingly. As Australia is a country experiencing hot and humid climate, Nexba will have a significant advantage in delivering the company products as per the customer preference in varying locations (Paley, 2017).
The market-positioning graph is provided below:
Fig: Market positioning of Nexba beverages
(Source: As created by the author)
The company had planned to keep the product price reasonable without compromising the product quality so that Nexba can excel in providing the customers with amazing drinks. By doing so, the company will be able to increase its sale in the market and win over the rival companies in terms of competitive advantage. The company will have significant advantage to enter the market and thus, increase their profit level. If Nexba is successful in providing superior quality product in the market, then they will be able to attract the potential loyal customers who might switch from the rival companies and purchase the products from Nexba (Ritter, 2014).
Competitor analysis
The key marketing objectives of Nexba beverages are structured below:
- The company must use a narrative form to create awareness among the customers regarding the products. It will provide an opportunity to the company to use storytelling-marketing strategy for achieving an improved market position.
- It is required for the company to make effective use of social media to increase attention of the products in the market. Awareness through social media is proved to spread better knowledge among the customers about the company products. Therefore, it will be helpful for Nexba to spread knowledge among the customers about the kinds of products that they manufacture and attracting the customers to buy those products.
- By using the new strategy of influencing marketing, Nexba will be able to convey a properly structured message to the customers regarding their product in order to sway the customers away from the rival companies.
The key financial objectives of Nexba beverages are outlined below:
- Nexba beverages need to focus on increasing their profit to 25% in the current financial year of 2018- 19. In order to achieve the specific percentage, the company should implement improved marketing strategies for functioning and reduce the overhead expenditure.
- There is a necessity to maintain the cash flow statement of the company, which will be helpful in looking over the operating capital of the company for managing the essential cost.
- The company should create short- term fiscal goals for the betterment of the company operations over time duration.
The 4Ps of marketing mix is outlined below-
Product- If Nexba beverages can incorporate their marketing mix properly, then they will get the scope to use different options present in the strategy for effective launch of the company products. One of their primary strategies is to offer health drinks to the customers, which will not have any additional sugar, only natural ingredients (Scott & Scott, 2016).
Place- The products of Nexba beverages will be sold in the Australian market to provide the customers with a wide range of healthy drinks. The company products will be distributed to the supermarket, retail stores for reaching the customers and giving them an idea about the product to help them in purchasing the same.
Price- Nexba will follow the strategy of penetration pricing to enter the market easily with a reasonable price. This strategy will help them to gain competitive advantage in the market and help in increasing the sale of company products (Siguaw & Simpson, 2015).
Promotion- Nexba beverages need to follow an appropriate promotional technique. It will be helpful in spreading knowledge among the customers regarding the availability of company products in the market. A suitable tool for promotion helps in increasing the sale of the product in the market.
Apart from the 4Ps, there are other 3Ps, which needs to be considered by the company in designing their marketing strategy. The other Ps is given below:
People- Nexba beverages need to consider the internal and external people as important for their operations. These people range from the sales staff to the managing director and the company has no other option but to rely on them (Van Valen et al., 2016). Therefore, the company should focus on selecting the right people who will be responsible for making a brighter future for Nexba.
Processes- The company products are always delivered in presence of the customers so that they are satisfied with the products that they are getting in exchange of the price. Therefore, Nexba needs to provide the best quality products in exchange of a reduced price to attract the customers of the Australian market.
Physical evidence- Nexba beverages is responsible for manufacturing health drinks consisting of natural and authentic products. Therefore, they should aim to provide the customers with such tangible products for which they are paying the price. This will assure the customers that their money is being valued in exchange of the authentic products that they are receiving (Wong et al., 2016).
Stakeholder analysis
Nexba should pay attention in carefully conducting the market research so that they are able to take precaution before the occurrence of any unavoidable risk. It is of utmost importance to keep a flexible profit level by the company up to 7%, which will consider certain unavoidable risks. By implementing this strategy of flexible profit level, the company will be able to attain huge market share in Australia (Wrenn & Mansfield, 2014).
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PROMOTION MIX BUDGET |
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Advertising Expenses |
Per unit price($) |
Total price($) |
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TV Channels |
18000 |
3,60,000 |
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Magazines and Newspapers |
18 |
14,400 |
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Banners |
20 |
40,000 |
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Cinema Budget |
Nil |
1,25,000 |
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Sponsorship events |
2,00,000 |
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Total |
18038 |
739400 |
From the budget given above, it can be observed that the average cost per unit of advertising in magazines and newspapers will be $18. Again, the television channels will get a price of $18000 on an average basis. Apart from these two, the company will also use the medium of movie theatre to spread knowledge among the customers regarding their products. Moreover, Nexba beverages will have to extend their promotion by sponsoring sporting events because health drinks are perfect for the players and therefore such events will be appropriate for promoting the company products. As the company manufactures natural and authentic products without additional sucrose content therefore, the product will be highly appealing among the customers.
Conclusion
It can be concluded that Nexba beverages should take into consideration the key strategies mentioned throughout this report in order to establish their products in the Australian market. The goals are described in detail, which will be effective in fighting against the rival companies to attract the potential customers.
References
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Armstrong, G., Kotler, P., Harker, M., & Brennan, R. (2015). Marketing: an introduction. Pearson Education.
Barce, R., Janzen, H., Kirkewoog, S., Marthaller, C., & Bauer, J. (2017). Ring Video Doorbell Marketing Plan.
Culley, B., Graham, J., Kay, G., Norberry, J., & Wilson, S. (2017). Digital Marketing Plan: Naked Wines Australia. Newcastle Business School Student Journal, 1(1), 68-89.
Fine, S. H. (2017). Introduction to social marketing. In Marketing the Public Sector (pp. 1-12). Routledge.
Koskinen, S. (2016). Increasing Social Media Engagement through a Digital Marketing Plan. Case: Plootu.
Kotler, P. (2015). Framework for marketing management. Pearson Education India.
Kuazaqui, E. (2015). Considerations on the Marketing Plan for Brazilian Micro Enterprises. Revista de Micro e Pequenas Empresas e Empreendedorismo da Fatec-Osasco, 1(1), 3-21.
Lidstone, J., & MacLennan, J. (2017). Marketing planning for the pharmaceutical industry. Routledge.
Macarthy, A. (2018). 500 Social Media Marketing Tips: Essential Advice, Hints and Strategy for Business Facebook, Twitter, Pinterest, Google+, YouTube, Instagram, LinkedIn, and More!. CreateSpace Independent Publishing Platform.
Miles, J. (2014). Instagram power: Build your brand and reach more customers with the power of pictures. New York, NY: McGraw-Hill Education.
Mohammed-Eldeeb, R., Fawzy, M., & Saed, Y. (2015). A Marketing Plan for Provision of an Adequate, Safe, and Effective Blood Supply. Transfusion, 55, 97A.
Paley, N. (2017). How to Develop a Strategic Marketing Plan: A step-by-step guide. Routledge.
Ritter, J. (2014). ” What is the role of marketing in strategic planning”?. The Business & Management Review, 4(4), 88.
Scott, A. D., & Scott, S. A. (2016). Marketing Me: A case study on the evolution of an MBA marketing competence exercise. Procedia-Social and Behavioral Sciences, 228, 641-647.
Siguaw, J. A., & Simpson, P. M. (2015). A marketing plan for marketing instruction: A satirical look at student comments. In Creating and Delivering Value in Marketing (pp. 129-133). Springer, Cham.
Van Valen, E., Martin, N., Chaudhary, K., & Mann, K. (2016). Coby’s Marketing Plan.
Wong, H., McLean, J., Lam, L., Shan, M., & Chen, M. (2016). Marketing Plan Report.
Wrenn, B., & Mansfield, P. M. (2014). Marketing planning guide. Routledge.
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