Product Strategy
Product Strategy
Nexba is famous for the naturally sugar-free contents. They do not add sugar in their products and they also not blend any kind of artificial sweetener for this sweetness in the product (Nexba.com, 2018). They researched a lot and then create such things that taste incredibly but not high in gaining calories. The sugar content in drinks and beverages creates detriment for the body and high level of calories ultimately threaten the human activity.
The three level of products strategy starts with the core product, actual product and augmented product. The core product deals with the product benefits. The effectiveness of those process and the main reason for attaining those products are showcased in that case. In that case, Nexba has its own innovation of sugar-free food deliverance. The most important product value sustained through the process (Nexba.com, 2018). Actual product evaluates the quality, colour, branding, shape, and style of the products. Products like ‘Watermelon Cucumber & Mint Flavoured Sparkling Water, Coconut & Mango Flavoured Sparkling Water, and Strawberry & Raspberry Flavoured Sparkling Water, Lemon & Lime Flavoured Sparkling Water’ have an extract of different fruits, but the sugar content from those are removed. The shape and size of those products are good in style and quality is being maintained through the products (Cohen et al., 2018). Nexba maintains their actual product quality and then packaged those bottles in the 1L PET at affordable prices. The augmented product deals with the non-physical part of the product. Service, delivery, customer handling, finance all these things are associated with the augmented product. In that case, Nexba introduced removing sugar and deliver products with better taste and quality. The change in the product with the innovative thought of using human physical augmentation works on that matter.
Product portfolio depends on the market share and market growth of the company. The products being sold in the high or low market according to the potential of customers. The revenue generation is depending on the promotions and innovations of the company, which introduces by them and made a sustainable impact over the place (Kraak et al., 2017). After the partnership had made with Coles, 156% revenue increase happened in one year in the 2017-2018 financial year. The product innovation and effectiveness are processed in a systematic way where nothing artificial things are added and delivered.
Pricing Strategy
The initial pricing strategy that Nexba needs to introduce is the price skimming strategy. The price skimming strategy involves in the setting where the price range of the product is high at the introductory phase. The reason behind the price skimming is the craze and urgency of the product at the initial time. People love to have that product and that will be effective in case of addressing the market. Market segmentation is aligned through that process and people from different demographic background take those products. The beverage industry has the opportunity to introduce something new that will not be addressed in the market at the earlier time (Wang & Yu, 2016). The people, those are suffering from diabetes will find those products suitable as the products cater those people also, those are not taken sweet because of sugar. The price is high at the initial time and after some period of time, the price range decreases as the competitors will come with some other innovative products, so a fixed rate is maintained throughout after that. The prime profit of price skimming is the maximum amount of profit at the early stage of business. The company also attracts price-sensitive consumers (Ahmed & Rahman, 2015). The development and initial cost will come from this process and this is the reason price skimming is important for the development of the business.
Pricing Strategy
Competitive and price differentiation strategy is the next strategy that Nexba may be used for the development of their business. This is also important for analysing the market and delivers the right way to flow the business (Supachaturat et al., 2017). The most important approach in such a situation is the product quality and low-cost pricing delivers through the process. The competitive strategy defines the market structure and evaluate all the prices for the same product nature. The company needs to concern about the market structure and the assumed revenue they can generate.
Placement
The place of the business is also a concern for the company. The designed place needs to be evaluative and have that infrastructure that provides advancement in business. Tax permission, legal processes are in the administrative department, but the desire of people to have those beverages will encourage the market. Nexba needs to select a proper distribution strategy for the proper channelling of business.
Selective distribution is the key strategy in Nexba and that utilises better marketing of the company. This distribution policy operates between intensive and exclusive distribution. The process involves more than one distribution channel and lesser than all intermediaries and distribution (Carpenter, 2015). The distribution strategy helps in good market coverage, increased control of product distribution and the reduced cost as compared to the intensity distribution. The distribution process helps in rolling the business and also cooperate the business strategies for the advancement of business. Nexba will distribute their products in some selected outlets where the target market has been set (Nexba.com, 2018). The market competition in those places are quite low and that enhance the business opportunity and advancement for the further acceleration in business. The particular vicinity, Nexba targeted for the product distribution must have a need for the particular product, unless the business will not place in a sustainable ground.
Promotions
Social media marketing is the best way to promote business. Technological advancement is the key approach in that case and that deliver better opportunity in business. The marketing will be huge through social media as the most number of people get associated with the product in quick time and that encourage the revenue generation (Supachaturat et al., 2017).
Content and charity programmes have also become a strategy for the development of the organisation. Nexba needs to announce some context related to their products and people win to earn some good price if they associated with the product (Alhawsawi, 2016). There are some charity programs of human rights, child education, food safety activities, Nexba must involve with such processes for the advancement of their business.
Placement
Point-of-sale promotion is promoting the in front of the store. In case of entering the supermarket, the customer will find the product in front of everything and the marketing approach is redefined through the process (Australia, 2015). Most of the people engaged by the impulsive promotional strategy and often purchase the products just because of the promotional attractiveness.
Customer referral incentive programmes need to start from the company’s end. Nexba will announce that people who refer the brand code to their neighbours, family members, colleagues or any person, will get an additional 50% discount for three new purchases. The approach of the marketing strategy is based on the positive vibes from others and that encourage the business.
Discount pricing strategy is another promotional strategy that Nexba may use for their promotional purpose. Through the promotional strategy, the company will serve their selected 100 customers with a 10% extra discount in any of their products. The process will expire for the first 6 months. The promotional strategy is important for the development of engagement with customers and that encourage the business opportunity in a competitive business market (Sharma, Nasreen & Kumar, 2018). Choice of product and people attractiveness of getting the product in less price range engage more customers and that encourage the revenue generation of business.
References
Ahmed, S., & Rahman, M. (2015). The effects of marketing mix on consumer satisfaction: A literature review from Islamic perspective.
Alhawsawi, R. (2016). Marketing Mix in FMCG’s leading Companies: Four Ps Analysis. International Journal of Scientific & Engineering Research, 7(2), 734-737.
Australia, A. S. (2015). Contemporary business strategies and learning models in the agrifood industry.
Carpenter, S. (2015). Marketing and Advertising Strategies: What’s it all About?. In Japan Inc. on the Brink (pp. 148-157). Palgrave Macmillan, London.
Cohen, D. A., Bogart, L., Castro, G., Rossi, A. D., Williamson, S., & Han, B. (2018). Beverage marketing in retail outlets and The Balance Calories Initiative. Preventive medicine, 115, 1-7.
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.
Nexba.com (2018) retrieved from: https://www.nexba.com/ [Accessed on 16th November, 2018]
Sharma, Y., Nasreen, R., & Kumar, A. (2018). Impact of Marketing-Mix for Core-Food Items on Purchase Behavior at Subsistence Marketplace-An Empirical Study of Urban Subsistence Market of Delhi. Global Journal of Management And Business Research.
Supachaturat, S., Pichyangkura, R., Chandrachai, A., & Pentrakoon, D. (2017). Perspective on functional food commercialization in Thailand. International Food Research Journal, 24(4).
Wang, E. S. T., & Yu, J. R. (2016). Effect of product attribute beliefs of ready-to-drink coffee beverages on consumer-perceived value and repurchase intention. British Food Journal, 118(12), 2963-2980
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