Marketing Plans And Strategies For Nexba Company

Situation Analysis: PESTEL Analysis

Discuss about the Marketing Plans And Strategies For Nexba Company.

The story of Nexba beverages began on a sunny day at a Mexican beach, Rio Nexpa. One of the company’s owners was enjoying his home-made ice tea and was highly inspired to create a low calorie and natural beverage. After returning to Sydney, Drew met his entrepreneur friend, Troy Douglas and started working with him, which resulted into a wide range of healthier drinks. Commonly known as the Aussie boys, Troy and Drew founded Nexba in the year 2010, with the hope of offering people with healthier alternatives. It won the prestigious Telstra Australian Business Award, in the year 2015 for their achievements and innovation. Their success stories grabbed the attention of Coles Supermarkets, and in 2016 they partnered with Nexba to take a step beyond tea and reinvented their soft drinks (Nexba.com, 2018).

The purpose of this report is to formulate marketing plans and strategies for Nexba Company. The report will throw light on the major problems and contextual analysis, which the beverage company is currently facing in the existing markets. In addition to this, viable solutions are being provided, which is important for the company, at large. Moreover, it is immensely vital to identify different market segments in order to target the customers and increase their products’ sales. Additionally, the market positioning is also crucial for allowing the company in gaining competitive advantage in their business environment. Last but not the least; the report also highlights the promotional mix and strategies, which the company needs to undertake for sustaining in the competitive market of Australia.

PepsiCo and Coca-Cola have been continuing their business into the markets of Australia for several years. They are the major competitors of the Nexba Company. The competition has resulted into the decrease in the number of loyal customers, as PepsiCo and Coca-Cola have also introduced a range of sucrose-free beverages. Moreover, the price factor may also affect the beverage company, as its competitors provide products at much cheaper rates. Therefore, the company will be facing huge competition in the business market.

The Nexba Company will be able to gain an understanding of their stakeholders, which in turn will prove to be successful for the market. The beverage company’s major stakeholders are its suppliers, who supplies raw materials for better production. It is immensely important for the company to check whether the raw materials are being provided at cheaper rates, or not. The company needs to emphasize upon the competitiveness of their pricing strategies. Moreover, the customers are also the major stakeholder of the company as they purchase the products. Their feedback is immensely important for the company’s success, which in turn will enhance their profitability (Cross, Belic & Rudelius, 2015).  

SWOT Analysis

Companies like PepsiCo and Coca-Cola have been continuing their business in the Australian market for decades. They have more loyal consumers than the Nexba Company. These companies have been continuing their business in the Australian market for years and thus, they have studied the market in an efficient manner. Moreover, the companies have introduced certain products, which do not contain sucrose. Therefore, they are giving direct competition to the Nexba beverage company. In addition to this, the Nexba Company is facing some marketing issues, as they are making certain mistakes by adopting wrong strategies. Thus, it can be said that the major problem of the company is tough competition faced due to its age-old competitors. Additionally, the company’s wrong adoption of marketing strategies is also contributing to its problems (Alt, J., & Iversen, 2017). Hence, it is immensely crucial for the company to resolve these issues, in order to gain competitive advantages and increase attractiveness.

Market segmentation is an important process of segmenting a broader customer or say, business market, into sub-groups on the basis of some shared characteristics. Segmentation of the market plays an important role in increasing a company’s product output. Nexba Company should deliver the right products to the right consumers, in order to increase their sales to a large extent. Moreover, it is immensely important for the company to understand the target population, their needs and demands in an effective manner, so that their level of profitability increases. In addition to this, the demographic segmentation must be done on the basis of several factors like, religion, age, income, population, gender and others. This will enable the company in understanding their consumers’ changing preferences and demands. Furthermore, the company will be able to evaluate their desires and satisfy them in accordance with that. The segmentation should be done on the basis of their behaviors, attitudes, purchasing behavior, psychographic attitudes, demographics and psychological needs (Craft & Hassan, 2015).  

Nexba Company’s purpose is to keep their products’ prices low, but products’ quality high. It aims to provide its consumers with the best drinks or beverages available within the market. This particular technique will enable the company in gaining a competitive advantage and increase its sales as well. Moreover, the company will get a better position in the market, which in turn will enhance their market penetration techniques. Adoption of these techniques will enhance their profitability as well. Good quality products and that too, at lower rates attract a large number of consumers (Dolnicar et al., 2014). Therefore, it can be said that the Nexba Company will get highly benefitted through these techniques and indirectly force the individuals to switch their favorite ones and become loyal to Nexba-products.

Competitor Analysis

Nexba Company can undertake the following marketing objectives in order to yield better outcomes;

• With the advent of digital media, marketing techniques have become a lot easier. Therefore, the company needs to make the most of it. Utilizing the social media platforms and that too, in an extensive manner can help yielding beneficial outcomes. Consumers will gain a better knowledge of the company and the wide range of products it manufactures.
• Adopting a story-telling technique will not be a bad option. Rather, it would help in attracting the most number of heads. The company can adopt the story-telling policy of marketing, in order to gain a better market position.
• In addition to this, Nexba can adopt a new strategy of marketing, known as influencer marketing. This will enable the company’s leaders to deliver their message in a proper manner, so that the customers get highly influenced.

The company’s financial objectives can be as follows;

• Firstly, Nexba needs to maintain their cash flow statements in order to control their operational costs.
• Secondly, the company needs to increase their profitability by a significant percentage, in between 2018-2019. This will become true only when the company adopts the mentioned strategies of marketing and decrease their overhead expenses.
• Thirdly, short financial goals must be set up by Nexba, which will result into improvement of the company’s operations within the given time-period.

Nexba Company can launch its new range of products in an appropriate manner, if they utilize the marketing mix in an efficient manner. This will further result into the adoption of several strategies, which are present within the competitive business environment (Delmon, 2017).

Product

The company’s Unique Selling Proposition is that it uses natural ingredients to manufacture its products, avoiding the usage of sucrose into their beverages. This keeps their products fresh, natural as well as authentic (Evans, 2017).

Place

It is in the Australian market, where the products will be sold and it will enable the customers to enjoy fresh beverages at lesser prices. The customers will not have to worry about the availability of the products, as every supermarket will keep Nexba beverages (Yang, 2015).

Price

The pricing strategy of the company is highly advantageous, as it has decided to keep their quality high and prices low. Thus, the company will gain competitive advantage, which in turn will enhance their sales’ level (Kim & Mauborgne, 2014).

Promotion

The company should adopt right promotional techniques in order to cater to a large number of customers. Promoting the products on social networking sites and company’s websites will enable in attracting the most number of heads. Moreover, it will also help in increasing the beverages’ sales in the Australian market (Baker & Sinkula, 2015).

Nexba needs to conduct the market research in the most appropriate manner, keeping the risk factors into consideration. Risk can emerge at any point of time, which may affect their economy. Thus, proper marketing research must be done so that, the profit levels remain flexible. It will also enable the company to avoid contingencies or challenges, which it may face in this competitive business environment (Ecker, Jones & Levine, 2015). Thus, the company will gain better market share control and enhance their profitability as well as productivity.

Nexba Company’s overall budget has been given above and it can be seen that the overall promotional costs will be $1395000 (approximately). The company’s sponsored events can be sports, where it can promote health drinks with no sugar contents.

Conclusion

To conclude, the Australian beverage brand Nexba has been found by two entrepreneurs, namely Drew and Troy. The company has been revolutionizing the traditional soft drinks with their wide range of Sugar Free products. The report has successfully highlighted the contextual analysis of the company, along with their major problems. Moreover, it has highlighted the viable solutions that the company can undertake, in order to gain competitive advantage, in their business environment. In addition to this, the report successfully identified various market segments, which the company can target in order to increase their sales. Furthermore, several marketing and financial objectives have been discussed in the report, which the company can undertake in order to achieve success on the long run.

Stakeholder Analysis

Nexba Company has tough competition, which already exists in their business market. Therefore, it is important for the company to adopt certain strategies and techniques of market segmentation, in order to penetrate new market areas. Furthermore, SWOT and PESTEL analysis is being done, in order to gain a detailed analysis of the strengths, weaknesses, opportunities and threats and the political, economical and other factors of the company. Moreover, the report also highlighted the basic techniques of marketing which the company can adopt to enhance their productivity level.

References

Alt, J., & Iversen, T. (2017). Inequality, labor market segmentation, and preferences for redistribution. American Journal of Political Science, 61(1), 21-36.

Baker, W. E., & Sinkula, J. M. (2015). Market Orientation and Organizational Performance: A New Product Paradox?. In Creating and Delivering Value in Marketing (pp. 254-254). Springer, Cham.

Bull, J. W., Jobstvogt, N., Böhnke-Henrichs, A., Mascarenhas, A., Sitas, N., Baulcomb, C., … & Carter-Silk, E. (2016). Strengths, Weaknesses, Opportunities and Threats: A SWOT analysis of the ecosystem services framework. Ecosystem services, 17, 99-111.

Craft, S. H., & Hassan, S. S. (2015). Global consumer market segmentation strategy decisions and managerial assessment of performance. In Revolution in Marketing: Market Driving Changes (pp. 26-30). Springer, Cham.

Cross, J. C., Belich, T. J., & Rudelius, W. (2015). How marketing managers use market segmentation: An exploratory study. In Proceedings of the 1990 Academy of Marketing Science (AMS) Annual Conference (pp. 531-536). Springer, Cham.

Delmon, J. (2017). Public-private partnership projects in infrastructure: an essential guide for policy makers. Cambridge University Press.

Dolnicar, S., Grün, B., Leisch, F., & Schmidt, K. (2014). Required sample sizes for data-driven market segmentation analyses in tourism. Journal of Travel Research, 53(3), 296-306.

Ecker, D. M., Jones, S. D., & Levine, H. L. (2015, January). The therapeutic monoclonal antibody market. In MAbs (Vol. 7, No. 1, pp. 9-14). Taylor & Francis.

Evans, M. (2017). Understanding policy transfer. In Policy transfer in global perspective (pp. 10-42). Routledge.

Feys, B., & Probert, C. (2015). PESTLE analysis. Primento Digital.

Kim, W. C., & Mauborgne, R. A. (2014). Blue ocean strategy, expanded edition: How to create uncontested market space and make the competition irrelevant. Harvard business review Press.

Li, C. Z., Hong, J., Xue, F., Shen, G. Q., Xu, X., & Luo, L. (2016). SWOT analysis and Internet of Things-enabled platform for prefabrication housing production in Hong Kong. Habitat International, 57, 74-87.

Makos, J. (2015). What is pest analysis and why it’s useful. PESTLE Analysis.

MANUFACTURERS, A. B. (2017). Market.

Nexba.com. (2018). Retrieved from https://www.nexba.com/pages/the-nexba-story

Yang, M. (2015). A Market Order Model When Insider May Not Exist. Working paper.

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