Situation Analysis
Discuss about the Marketing and Management for Target Customer and Purchasing Behaviour.
The motive behind the report is to present the marketing plan for the Nexba that provide the support to management for operating entire business activities. The company is founded by Aussies boys, Drew and Troy in the year 2010 with the objective to offer the healthier alternatives to the people (Nexba, 2018). The mission of the company is to become the fastest growing global naturally, sugar-free brand. Along with this, the vision of the company is to bring the changes in lives by being a naturally brave brand that delivers naturally sugar-free product innovation (Nexba, 2018). The objective of the company is to enter the market of US with the effective use of its advantage that is large customer base, a rise in the demand for healthy and innovative drinks. The SBU objective of the company is to offer the healthy choice to the society and to generate the awareness about the healthy beverages.
The market of the company includes large buyers and sellers of Sydney, Australia. The company is known for naturally sugar-free beverages in different flavors which include cola, lemon and raspberry and many others (Nexba, 2018). Along with this, the company also offer sparkling water in different flavors along with the sparkling ice tea ginger. This report includes evaluations of the problem that is diversification in the other line products.
The internal analysis of the company includes both strength and weakness of the company. The strength of the Nexba is that it has a strong image in the market due to which it has large customers base as well. Moreover, the company is focused towards the health of the people that are present in the society by offering a different range of healthy beverages in the market (Nexba, 2018). On the other hand, the weakness of the company is that the owner of the company doesn’t have much experience with the fast experience customer goods. Moreover, the company doesn’t have diversification in the products as the company only offer beverages.
|
Target customer |
Purchasing Behaviour |
|
Teens (Youth) |
Youth likes the flavors and the healthy drinks that are offered by the company to their customers. |
|
Adults |
The adults make use of this healthy drink on a daily basis which makes them feel fresh and energetic (Nexba, 2018). |
|
Old Age |
The products of company don’t create an impact on the health of old age people due to which this product is preferred by old age people. |
|
The threat of substitute |
The threats of the substitutes to the Nexba are low because the company offers the healthy beverages and that too in different flavors. Moreover, nowadays most of the customers are becoming health conscious towards the products that they are consuming. This will make the customers stick towards these healthy soft drinks only. |
|
The threat of new entry |
The threat of the new entry in the market is high for the Nexba company because after considering the needs of the customers more and more companies are planning to open the business in which they can offer the healthy choices in the form of products to the customers (Kotler, 2015). This reflects that the threat of new entry is high for Nexba in the current market. |
|
The intensity of the Competitive rivalry |
The intensity of the competitive rivalry is medium for the Nexba company because there are only a few companies who offer the healthy products. These companies deal with the different industry due to which the company doesn’t face much competition in the market. Though, the other competitors of the company include soft drink producers like Coca-Cola and Pepsi. These competitors give strong competition to the company. |
|
Buyers Bargaining Power |
The bargaining power of the customers is low because the company is offering the wide range of healthy sugar-free beverages. This helps the company in attaining the attention of the customers towards their products. Moreover, the buyers who like the products don’t want to switch to any other brand. This reflects that the company is able to maintain the customer loyalty. Along with this, the company won the award for the world’s largest consumer-voted award for the product innovation in the year 2017 for the naturally sugar-free drinks (Nexba, 2018). |
|
Suppliers bargaining power |
The bargaining power of the suppliers is high in the market because there are very fewer suppliers available in the market for the healthy products (Chernev, 2018). Moreover, if the suppliers find that the company is looking for the healthy raw material then they charge high amount due to which the company has to purchase the products at high prices. Apart from this, the company can’t switch to other suppliers because of less number of suppliers who offer healthy products. |
There are numerous competitors that are present in the industry of beverages. Nexba also faces strong competition from the companies like Coca-Cola and Pepsi. The Coca-Cola and Pepsi Company produce the carbonated soft drinks (Owler, 2018). The company offers these drinks to the customers which are highly consumed by the customers in the market. Though, on the other hand, the company offer healthy sugar-free products which are best for the health of customers. The company needs to bring the awareness in the market related to its offering. Along with this, as the education level is increasing the people are becoming more health conscious and are willing to consume healthy soft drinks.
Internal Analysis
The distribution and supply chain analysis of the company include the different ways through which the company makes the goods available to the final customers. Below given are the phases through which the company offer its products to the customer.
Online services: – The products of the Nexba are available through online stores. The customers can book the products through the website.
School distributors: – The products of the Nexba are available with the school distributors across Australia. All these school distributors currently keep the stock of the products of Nexba such as Westco Distributors, Daily Fresh, Plateau Foods, and many others (Nexba, 2018).
The above analysis reflects that company follows the initial two tiers that are a producer-consumer and another is a producer to retailer to customers. . Moreover, the company follows the stockist strategy for the distribution (Nexba, 2018).
|
Strength |
Weaknesses |
|
A strong image in the eyes of the customer (Drew, 2014) The company is focused towards the health of the society Won various prestigious awards such as Award for Telstra Australian Business. Various range of beverages A key player fighting against sugar Innovative idea |
Lack of offering a variety of products Owners do not have much experience about the fast moving consumer goods. Less employee involvement in the decision making. |
|
Opportunities |
Threats |
|
Increasing health awareness among people can result in increased sales of the company. Enhancing the effectiveness of the strategy of the market. Expansion in various other markets such as Asia. |
The absence of entry barriers in the market Emerging problems related to ethics |
Marketing objectives are said to be the goals fixed by a company when advertising its services or products to the potential consumers that must be attained in a given time frame (Lake, 2018). The marketing objective of Nexba is to increase brand recognition of the company and generate awareness among people about diet beverages. This can be achieved by the company through advertisement and sales promotion.
Advertisement- Nexba Company will make use of print and media advertising systematically as a confirmed channel in order to convey a message to the potential customers along with present customers.
Sales Promotion- Various types of sales promotion will operate as an integral portion of the Nexba’s marketing strategy. The beverages business enables sales promotion by free samples, the point of sales material, etc.
Targeting Strategy- Targeting strategy involve the process of deciding the target market for the product and services that company is offering to its customers. It is consist of customers who display alike characteristics and are measured as most likely to purchase the service and products of the business. The targeting strategy of the company is to penetrate the whole market by utilizing its advantages such as a good image in the eyes of customers. The company will target the teens, adults, and old age people in the market. The teens are very much considered about their health and love to taste different flavors, adults want to have a drink which makes them feel fresh and energetic and old age people want to enjoy thee beverages which do not affect their health by comprising sugar in it.
Customer Analysis
Positioning- Positioning means the place that is covered by a brand in the eyes and mind of the customers and how it is different from the services and products of the competitors. In order to have a good position in the market, companies try to make their products different. In order to place the product on the market, Nexba will advertise its products on the television which has a wide reach and cover major of the population. Moreover, the company will emphasize on those channels which are popular in teens, adults, and old age people.
The marketing mix means the fixed tactics or actions that a business utilized to advertise its products or services in the target market. The 4Ps are the important elements of this strategy which are Product, Price, Place, and Promotion (The Economic Times, 2018).
Product- Nexba offer variety of products to its customers such as Natural sugar free lemon, natural sugar free raspberry, watermelon cucumber and mint flavoured sparkling, coconut and mango flavoured sparkling water, lemon and lime flavoured sparkling water, naturally sugar free sparkling ice tea pineapple, natural sugar free cola, natural sugar free sparkling ice tea acai berry (Nexba, 2018). Nexba should focus more on entering the new market such as food market, in order to increase market share.
Price- The price strategy of the company changes according to the target group depending on their salary. It offers its products from low range to the high range so that everyone can afford and enjoy tasty and healthy drinks.
Place- Presently, the company is offering its products in the Australian market. Besides this, it offers online services and products. The company should start offering its products in the United States market for more revenue, growth, and increases market share. Besides this, it can also consider Asian market to increase the health awareness among people.
Promotion- Presently company offers its products online which is not able to cover a major part of the population or target market and therefore, affecting the sales of the company. Hence, the company needs to adopt advertisement and sales promotion strategy as suggested above will definitely support company in increasing market share and sales. Besides this, the company can adopt an advertisement strategy which helps them in promoting the health of people such that it can attract the eyes of the people.
|
Budget for Marketing Plan of Nexba |
|
|
Advertisement for 3 years |
60000 |
|
Employee cost |
10000 |
|
Rent |
5000 |
|
Motor vehicles |
25000 |
|
Total |
100000 |
|
Nexba Company |
|||
|
Profit & Loss Statement |
|||
|
Amount ($) |
|||
|
2018 |
2019 |
2020 |
|
|
Sales |
$1,50,000 |
$1,80,000 |
$1,98,000 |
|
Cost of Sales |
$90,000 |
$90,000 |
$99,000 |
|
Gross Profit (A-B) |
$60,000 |
$90,000 |
$99,000 |
|
D. Operating Expenses |
|||
|
Salary |
$15,000 |
$15,000 |
$15,000 |
|
Rent |
$5,000 |
$5,000 |
$5,000 |
|
Utilities |
$1,000 |
$1,000 |
$1,000 |
|
Depreciation |
$1,000 |
$1,000 |
$1,000 |
|
Advertisement |
$20,000 |
$20,000 |
$20,000 |
|
Other |
$500 |
$500 |
$500 |
|
Total |
$42,500 |
$42,500 |
$42,500 |
|
Less: Interest |
$10,000 |
$10,000 |
$10,000 |
|
Profit before tax |
$7,500 |
$37,500 |
$46,500 |
|
Less: Tax @ 30% |
$2,250 |
$11,250 |
$13,950 |
|
Net Profit AT |
$5,250 |
$26,250 |
$32,550 |
|
Nexba |
|||
|
Balance Sheet |
|||
|
Amount ($) |
|||
|
Assets |
2016 |
2017 |
2018 |
|
Current |
$70,000 |
$85,000 |
$1,20,000 |
|
Fixed |
$1,80,000 |
$1,80,000 |
$1,80,000 |
|
Other assets |
$5,000 |
$5,000 |
$5,000 |
|
Total Assets |
$2,55,000 |
$2,70,000 |
$3,05,000 |
|
Liabilities |
|||
|
Current liability |
$15,000 |
$10,000 |
$5,000 |
|
Non-Current (Borrowings) |
$1,00,000 |
$1,00,000 |
$1,00,000 |
|
Total Liabilities |
$1,15,000 |
$1,10,000 |
$1,05,000 |
|
Equity |
$1,40,000 |
$1,60,000 |
$2,00,000 |
|
Total Liabilities & Equity |
$2,55,000 |
$2,70,000 |
$3,05,000 |
|
Nexba |
|||
|
Cash Flow Statement |
|||
|
Amount ($) |
|||
|
2018 |
2019 |
2020 |
|
|
Cash Flow from Operating Activities |
|||
|
Cash sales |
1,20,000.00 |
1,44,000.00 |
1,58,400.00 |
|
Realization from Debtors |
20,000.00 |
20,000.00 |
20,000.00 |
|
Payment to Creditors |
– |
– |
– |
|
Expenses paid |
42,500.00 |
42,500.00 |
42,500.00 |
|
Total |
1,82,500.00 |
2,06,500.00 |
2,20,900.00 |
|
Cash Flow from Investing Activities |
|||
|
Machinery Purchased |
25,000.00 |
25,000.00 |
25,000.00 |
|
Equipment Purchased |
– |
– |
|
|
Total |
25,000.00 |
25,000.00 |
25,000.00 |
|
Cash Flow from Financing Activities |
|||
|
Equity capital |
1,40,000.00 |
1,60,000.00 |
2,00,000.00 |
|
Borrowings |
1,00,000.00 |
1,00,000.00 |
1,00,000.00 |
|
Total |
2,40,000.00 |
2,60,000.00 |
3,00,000.00 |
|
Cash surplus/ deficit |
4,47,500.00 |
4,91,500.00 |
5,45,900.00 |
|
Opening balance |
– |
4,47,500.00 |
9,39,000.00 |
|
Closing balance |
4,47,500.00 |
9,39,000.00 |
14,84,900.00 |
Marketing performs as a blueprint of the policy or plan of the company. It offers complete details of the company’s marketing plan what needs to be done in the future and what alterations need to be done (Luther, 2011). They provide all the details of what needs to be done in the coming year and what changes need to be done in the business (Morello, 2018). The above-stated marketing plan of Nexba will support it in overcoming the challenges and issues which it is facing while performing its business operations. The issues are that company is not doing diversification of its offering in the other product line. The marketing plan has simply recognized the positioning and target market which will support it in solving this issue. On the other hand, to assess the marketing plan there are few criteria i.e.
Return on Investment- It is one of the major concerns in marketing. The idea behind this is to look whether the money which is invested in the marketing plan has resulted in a profit or not (Phillips, 2012). The company should evaluate the amount expended on the marketing and how much company got in return in terms of increased sales etc.
Customer Response- This criterion actually supports the organization in knowing how their planned activities are performing. This can be done through surveys, face to face interactions, feedback, etc. (Management Study Guide, 2018)
Conclusion
In the conclusion, it can be said that the marketing plan which is discussed above will definitely support company i.e. Nexba in attaining the good and improved position in the market. The plan has explained most of the major aspects which if the company followed will become one of the leading brands. Besides this, the marketing plan will help the company in overcoming all the challenges and issues which it is facing. The above report of marketing plan includes the internal analysis, customer analysis, industry analysis, and competitive analysis. The discussion of the distribution and supply chain has been done along with SWOT analysis. Further, marketing objective, marketing strategy and marketing mix strategies of Nexba has also been presented in the report.
References
Chernev, A. (2018). Strategic marketing management. Chicago: Cerebellum Press.
Dent, J. (2011) Distribution channels: Understanding and managing channels to market. London: Kogan Page Publishers.
DreamsTime. (2018). Marketing mix. Retrieved from https://www.dreamstime.com/stock-illustration-p-marketing-mix-business-concept-modern-style-layout-image44377045
Drew, B. (2014). Kochie’s Business Builders: How To Make The Competition Irrelevant. Retrieved from https://www.nexba.com/blogs/news/15514480-kochies-business-builders-how-to-make-the-competition-irrelevant
Kotler, P. (2015). Framework for marketing management. India: Pearson Education.
Lake, L. (2018). Setting Marketing Objectives for Your Business. Retrieved from https://www.thebalancesmb.com/what-is-a-marketing-objective-2295532
Luther, W. (2011) The Marketing Plan: How to Prepare and Implement It. 4th edn. America: AMACOM.
Management Study Guide. (2018). Customers Response and its Advantages. Retrieved from https://www.managementstudyguide.com/customer-response.htm
Morello, R. (2018). 7 Ways to Evaluate Your Marketing Plan. Retrieved from https://smallbusiness.chron.com/7-ways-evaluate-marketing-plan-58331.html
Nexba. (2018). All Products. Retrieved from https://www.nexba.com/collections/all
Nexba. (2018). National School Distributors. Retrieved from https://www.nexba.com/pages/national-school-distributors
Nexba. (2018). Naturally Sugar Free. Retrieved from https://www.nexba.com/pages/naturally-sugar-free
Nexba. (2018). The Story. Retrieved from https://www.nexba.com/pages/the-nexba-story
Nexba. (2018). Where To Buy Nexba In Aus. Retrieved from https://www.nexba.com/pages/national-school-distributors
Owler. (2018). Nexba. Retrieved from https://www.owler.com/company/nexba#competitors
Phillips, J.J. (2012) Return on Investment in Training and Performance Improvement Programs. 2nd edn. U.K: Routledge.
The Economic Times. (2018). Definition of ‘Marketing Mix’. Retrieved from https://economictimes.indiatimes.com/definition/marketing-mix
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
