International Journal Academic In Accounting: An Overview

Situation analysis

Discuss About The International Journal Academic In Accounting.

Every organisational entity aims to heighten business growth in terms of financial profitability and thereby, organisations always aim to gain new market segment for improving customer base. In this regard, the aim of this assignment is to focus on the development of marketing plan for improving business profitability and for this purpose, the study focuses on Nexba Beverage as the concerned organisation. In this regard, the chosen product is the Nexba’s range of flavoured ice tea products that contain only 4.9g sugar in comparison to any other soft drink products of different companies. Nexba mainly sells beverages and this organisation was founded in the year 2010. In 2016, Nexba made a partnership with Coles and took a step to reinvent soft drinks. 2017, Nexba won the consumer-voted award of the product-innovation (Nexba.com, 2018).

Situation analysis an essential element and initial part of developing a marketing plan for an organisation. For the concerned company Nexba Beverage, the main competitors include Coca-Cola and Pepsi. At the present time, these companies are trying to reduce sugar from their soft drink products and thereby providing tough competition to Nexba at the present time. However, according to Kraak et al., (2017), Nexba beverage has been stealing consumers from the market leaders Nestea and Lipton with the help of a range of flavoured iced tea products.  Hence, in terms of economies of scale, it can be stated that there is a drastic increment in the capital rise to around 2.4 million for the year 2015-2016 and this will reach to around 8 million by the year 2016-2017. This is beneficial for the concerned organisation as more and more people are tending towards sugar-free drinks and this trend is spreading rapidly amid young generation and health-conscious customers (Hoek, 2017).

Market segmentation can be perceived as the process of division of available market potential based on the characteristic possessed (Mone & London 2018). Each of the segments in this consideration consists customers with one or more common characteristics. The types of market segmentation include

• Geographic segmentation: This kind of segmentation allows the marketers to focus on the region in terms of the region in which the company likes to sell the products or services. For this purpose, it is essential for the marketers to draft strategies that would be best effective for the people from different regions (Sharma & Nasreen, 2018).
• Demographic segmentation:Demographic segmentation includes gender, age, race and income status of the customers to develop and design product to enhance customer loyalty. This allows the organisational entity to target proper group of people who will be interested in their goods or services (Kearney, 2018).
• Psychographic segmentation: This section includes the people based on personality, lifestyle and attitude of people. Marketers consider these factors as all these elements create a great impact on the buying decision of individuals.
• Behavioural segmentation: This segmentation is based on the factors such as preference, behaviour, choice, usage and decision-making ability of the customers (Kontoghiorghes, 2016). In this context, the knowledge of product allows the customers to develop buying decision about the goods or services offered by the company.

Nexba beverage has considered various segments for gaining business growth in terms of production and financial profitability. The segments that could be served by the concerned company includes

Geographic segmentation: This may not be considered appropriate for the concerned company Nexba Beverage as the company focuses Australia as the potential market.

• Age: Nexba targets customers between the age 10 and 60.
• Life cycle stage: This segment includes college goers, children and moreover athletes and to serve potentially
• Occupation: Sportsperson, students, employees and others professionals are considered by the company.

• People who love to have healthy physic
• People who love to stay afresh
• People who love to have a beverage to improve body strength and mind freshness

Discussion of the potential market segment

Under this particular segmentation, it will be beneficial for the aforementioned organisation Nexba Beverage to focus on both the middle class and upper-class people. This is because, the company focuses on value for money and maintains quality in all the products to gain customer loyalty and improve the health of the community (Phillips, 2016).

Targeting is the process that can be considered in the business process to understand the attractiveness and evaluate each segment and concerns effectively (McDonald & Wilson, 2016). Accordingly, the target market should be the element that business enterprise can consider to meet the requirements and at the same time, the potential consumers can be retained effectively and efficiently over a period of time.

Primary Target market:

For Nexba, customer segment can be identified on the basis of demographic segregation; college goers, children and moreover athletes and to serve potentially; especially the people who love to stay fit and maintain health at regular intervals. Therefore, Nexba can target the middle-income group with varied aged-group will be a target for the organisation. People who love to take fit and healthy would always prefer to taste finest possible drinks and beverage and they can get the same at Nexba. In this context, the athletes will be able to stay fit by taking the sugar-free iced tea and will be able to stay afresh potentially. Nexba can get the data about demographic segment through accessible data and use demographic segment, the organisation can improve customer loyalty and retention.

Secondary target market

Nexba can divide the market into specific groups of customers according to the attitude towards the organisation and response to the products. The organisation looks at the pattern of buying and using the patterns of spending money. The behavioural segment group will be targeted and the people who like to drink soft-drink will be secondary target. Behavioural segmentation has the advantage of using the variables that are closely related to the product itself (Fan, Lau & Zhao, 2015).

Nexba Beverage’s marketing strategy is based on the positioning of the product differentiation. Hence, according to Goyal & Bansal (2017), positioning is based on the meaningful differentiation which is supported by proper strategy and implementation. It is worth noting that, with the help of this positioning; it becomes possible for the organisational entity to build competitive advantage. Hence, using product differentiation, the concerned company is positioning iced tea as the most versatile, tasty, healthy and value-added product for the personal and professional use (Cheah & Phau, 2015). The marketing of the company focuses on the sugar-free and flavoured iced teas and this differentiates Nexba beverage from its all potential competitors (such as DR Pepper Snapple, PepsiCo and Coca-Cola).

Clear positioning statement

Figure 1: Positioning Map of Nexba

(Source: Self-developed)

Marketing objectives

This section deals with the marketing objectives that the concerned organisation may develop with the help of their products and services. Hence, the company leverages a range of product that is well accepted by the community as the product is healthy as it contains a less percentage of sugar. Thereby, the marketing objectives of the company include

• To improve sales by 2.5% by 2021
• To enhance brand awareness among the target markets
• To enhance the customer relationship

With the help of this marketing plan, the aim of the company is to enhance the sales in the potential market by 25% as the company is facing a tough competition from Coca-Cola and Pepsi. Thereby, the company aims to gain more customers from the market leaders Nestea and Lipton and thereby, it is essential for the company to improve sales to stay competitive. Further, another objective of the company is to enhance brand awareness through effective usage of digital platforms.

Financial objectives

• Growth in revenue and have a more diversified revenue base
• To gain attractive economic value added (EVA) performance
• To heighten attractive and sustainable market value added (MVA) performance  

At the present time, Nexba Beverage generates around $57.5k in revenue. However, Coca-Cola generates $ 35.5 billion more revenue than Nexba and Dr Pepper Snapple generates around $6.7 billion more revenue than the concerned organisation. Therefore, to stay competitive, in terms of financial objectives, it can be stated that, the aforementioned company aims to achieve sales revenue of around $70 billion and thereby have a more diversified revenue base through the diversified product range.

Product strategy

The concerned organisation Nexba has a wide range of product portfolio in the beverage industry. The iced tea including low-level calorie and sugar will be sold with a guaranty of strong and healthy physique. The natural sugar-free cola, sugar-free lemon, flavoured sparkling water is included in the product range. The company introduces a more compact, value-added and high-ended model. This product range is an integral part of the product strategy and it is reinforced by the prominence in the introductory marketing campaign. Further, it is essential for the company to focus on the significant product strategy. According to Maryani (2015), a range of product strategy includes pricing product, product positioning and product lifecycle management. In this scenario, the best product strategy includes managing the product through a number of stages of product life cycle. Hence, it is worth noting that, the company needs to differentiate its product along with the new features to increase sales and hence, the key to the concerned product lifecycle management is to get as much mileage out of the effective product range as possible (Heroux & Clark, 2017).

Objectives of a marketing plan

Price strategy

Due to the availability of wide range products, it is essential for the company to consider pricing according to behavioural and market segment. It is worth mentioning that, the companies need to focus on the effective pricing strategy in order to sell all the products or services in the competitive marketplace so that, it becomes possible for the company to make a profit. Hence, it is essential for the marketers to consider a range of factors such as the cost of the production and distribution, prices offered by potential competitors and determining the demographics of the potential consumers in the existing and target market. According to Zameer, Nisar & Amir (2014), the different pricing strategy includes premium pricing, penetration pricing, price skimming, economy pricing, competitors pricing and the other one is psychological pricing. For the concerned organisation, it will be beneficial for the company to consider competitors pricing. As opined by Chen et al., (2015), the beverage industry belongs to the oligopoly market and thereby, the consideration of the competitors pricing is significant to improve profitability.

Place strategy

It is one of the essential elements of the marketing mix and deals with the significant selling platform for the products or services. In this particular condition, it is essential for the concerned organisation to focus on the distribution system to reach to the significant customer base of the existing market. In this regard, the company may focus on the FMCG (Fast Moving Consumer Goods) distribution pattern. With the help of this effective distribution network, it can be stated that the aforementioned company becomes able to erode the small and other middle players in the existing and target market segmentation.

Promotion strategy

For delivering the products to the customers and advertise the features of the products to improve brand awareness, it is essential for the organisational entities to consider significant promotional platform and strategy (Schlegelmilch, 2016). For the concerned organisation, it is essential for the company to adopt various advertising strategy to create increased demand in the existing market by associating with behaviour and lifestyle and mainly targeting different value based advertising. Hence, it is worth mentioning that, the company needs to incorporate the social media platforms such as Facebook, Twitter, Yahoo and YouTube to create brand awareness. Hence, the pre-launching program in the social media platforms will be effective and valuable decision for Nexba Beverage.

Table 1: Social media advertisement strategy

Marketing mix strategy

(Source: Self-developed)

Total expenses:

Conclusion 

It can be stated that Nexba Beverage has significant market opportunities to improve the business growth which in turn will be beneficial for the company to improve the financial profitability. For developing the significant marketing plan for the aforementioned organisation, the study has developed a significant understanding of the present marketing opportunity by focusing on the situation analysis of the company. Further, the study has provided significant understanding regarding the market segmentation and target market for Nexba. With the help of this understanding, it becomes possible for the company to develop a significant marketing plan for gaining brand awareness. In this regard, it is worth noting that the study has considered behavioural and demographic market segmentation for Nexba Beverage.  For developing a significant marketing plan, the study has provided an in-depth understanding of 4P’s marketing mix as the tool for marketing strategy and shed light on product, place, price and promotion of the concerned product of the company. The researcher significantly has provided a budget that includes special emphasis on the digital communication platform to gain in-depth knowledge regarding marketing plan for Nexba so that, the company becomes able to give tough competition to all the major competitors in the market significantly.

Reference List  

Beverages, N. (2018). Nexba Beverages. Retrieved from https://www.nexba.com/

Cheah, I., & Phau, I. (2015).Effects of “owned by” versus “made in” for willingness to buy Australian brands. Marketing Intelligence & Planning, 33(3), 444-468.

Chen, E., Flint, S., Perry, P., Perry, M., & Lau, R. (2015). Implementation of non-regulatory food safety management schemes in New Zealand: A survey of the food and beverage industry. Food control, 47, 569-576.

Fan, S., Lau, R. Y., & Zhao, J. L. (2015). Demystifying big data analytics for business intelligence through the lens of marketing mix. Big Data Research, 2(1), 28-32.

Goyal, A., & Bansal, S. (2017).Digital platforms & natural eco-digital eco strategy–top brands igniting it through environment sustainable revolution. International Education and Research Journal, 3(5).

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Heroux, L., & Clark, D. (2017).A Comparison of Marketing Strategies of Microbreweries in the US and Canada. Journal of Tourism and Hospitality Management, 5(2), 1-11..

Hoek, J. (2017). Is there an intersection between “market justice” and “social justice”? An analysis of ENDS marketing. Journal of Social Marketing, 7(3), 241-249.

Kearney, R. (2018). Public sector performance: management, motivation, and measurement. Abingdon: Routledge.

Kontoghiorghes, C. (2016). Linking high performance organizational culture and talent management: satisfaction/motivation and organizational commitment as mediators. The International Journal of Human Resource Management, 27(16), 1833-1853.

Kraak, V. I., Englund, T., Misyak, S., & Serrano, E. L. (2017).A novel marketing mix and choice architecture framework to nudge restaurant customers toward healthy food environments to reduce obesity in the United States. Obesity Reviews, 18(8), 852-868.

Maryani, D. (2015). The Analysis Of Political Marketing Mix In Influencing Image And Reputation Of Political Party And Their Impact Toward The Competitiveness Of Political Party (The Survey Of Voters In West Java Province). International Journal of Scientific & Technology Research, 4(8), 101-111.

McDonald, M., & Wilson, H. (2016). Marketing Plans: How to prepare them, how to profit from them. John Wiley & Sons.

Mone, E. M., & London, M. (2018). Employee engagement through effective performance management: A practical guide for managers. Routledge.

Phillips, A. (2016). How books are positioned in the market: Reading the cover. In Judging a Book by its Cover (pp. 41-52). Routledge.

Schlegelmilch, B. B. (2016). Segmenting Targeting and Positioning in Global Markets. In Global Marketing Strategy(pp. 63-82). Springer, Cham.

Sharma, Y., & Nasreen, R. (2018). Perceived consumer-centric marketing-mix at the urban bottom of the pyramid-an empirical study of non-core food items. International Journal of Information, Business and Management, 10(1), 89-107.

Steenkamp, J. B. (2017). Global Marketing Mix Decisions: Global Integration, Not Standardization. In Global Brand Strategy (75-109). Palgrave Macmillan, London.

Zameer, H., Ali, S., Nisar, W., & Amir, M. (2014). The impact of the motivation on the employee’s performance in beverage industry of Pakistan. International Journal of Academic Research in Accounting, Finance and Management Sciences, 4(1), 293-298.

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