Key Issues and Objectives
Nudie Juice is a Australia based Beverage manufacturing company. The company has been founded in 2003 guaranteeing the 100% purity. Currently the company consumes 5,000,000 pieces of fruits to manufacture their various beverage products. Nudie Juice has 29% market share of the Australian Beverage industry. 75% of its fruit supply is managed within the nation while only 25% of fruits are collected from abroad (Nudie.com.au 2017). In the Australian market of Fruit Juice, the major competitors of Nudie Juice are Bickford’s, Just Juice, Harvey Fresh and Daily Juice. Nudie is famous for its product diversity. The company manufactures both mono flavoured and combinational flavoured juices. This product diversity has made 60million USD of revenue for Nudie Juice. One of the closest competitors of Nudie Juice is Bickford’s who has 20% market share (Nudie.com.au 2017). The mission of Nudie Juice is to provide healthy fruit Juice of top quality while making huge market share and profit.
The company is currently experiencing strong rivalry within the beverage market of Australia. The main causes of this competitive environment is intervention of multinational beverage manufacturing and supply chain companies, new entries with high potentialities, Efficient distribution network and diversities of existing competitors. The major weakness of Nudie Juice is its inefficient distribution channel. As per the recent market research and annual forecast of this company, Nudie Juice has lack of reaching power to the terminal consumers. The market availability of the products is comparatively lower than other companies. In spite of effective promotional activities the potential buyers is not getting adequate amount of products through the conventional distribution channels, corner shops and super markets (Heath, 2014). The varieties of products cannot reach to the target consumer in sufficient quantity while having enormous amount of manufacturing rate. This weakness is hindering the brand value, consumer base power, competency and other factors that could improve the profitability of the company.
Nudie Juice has recently conducted a market research through which it has been identified that their current weakness is insufficient distribution channel that is not capable to distribute the divertive products to the target consumers. The management has to identify what kind of product the customers are getting easily and which products are not available adequately in the market. This will help to identify the weakest distribution channel that has to be improved. Apart from that information about most available products in the market that is reducing the number of potential buyers has to be collected. It will help to determine the best strategy to regain the market recognition.
Research Design and Justification
Beverage industry of Australia:
The soft drinks manufacturing industry has been showing the moderate growth since the last five years. At the same time, the intervention of internationalise beverage chain regulates the larger section of the Australian market of non alcoholic beverage products (Huang et al. 2015). The price of competition is also very high that makes the business opportunity narrow for the novice level company. From 2017 the industry revenue has increase 1.7% that acts as the advantage and disadvantage for any moderate level companies (Sacks et al. 2018). The Australian government is not making any significant changes in the traditional rules and regulation such as trading low, contractual ethics, food and safety and others. This stable legal environment is favouring the potential growth of this beverage industry to some extent. On the other hand the soda based beverage market is unable to influence the traditional market demand of fruit juice (Alkaya and Demirer 2015). This specific feature is making the soda based beverage companies more attracted towards fruit juice production. On the other hand, from the past few years the national level fruit supply chain has failed to supply adequate raw material to this industry that increase the competitive environment (Huang et al. 2015). In other part of the globe some major supply management has made a near monopoly or competitive duopoly market, where in Australia the beverage industry is still under distributive ownership.
Importance of distribution channel:
Like any other operation associated with the production and development of the product distribution chain management is also a chief regulatory factor that influences the operational efficiency, market share, customer strength and even the potential revenue of any company (Spowart and Wickramasekera 2012). In organisational operation distribution management is considered as a part of outbound logistics that is responsible to make the produced product available to the target market segment. The potential buyers will not get their desired product in adequate amount without the intervention of efficient distribution network. Like any other industry, efficient distribution management can cause beneficial business growth. However, some of the organisation maintains their integrated supply chain with enough control on operation, while other organisations depend more on the external independent distribution chains (Moretto et al. 2014). To regulate the distribution chain the depended company needs to maintain additional partnership and contractual relationship with other logistic companies. This policy reduces the operational cost for market distribution while increasing the dependency on external environment. The bargaining power of the distribution management also influences the competitive environment of any industry.
Sources of Data
Research design and justification:
The research design refers the foundation of the research process that makes the research approach as well as research methods under the conceptual implementation of the selected research philosophy. In this research, both real time realistic data collection is needed with secondary data collection with the help of literature reviews. Henceforth, in order to analyse market condition and consumer trends this research has followed positivism philosophy (Malhotra and Peterson 2014). Three kinds of research designs are usually used to develop the conduction process of the research and the required flow of activities. These are Explanatory Design, Exploratory Design and Descriptive Design. In this particular research no previously delivered Hypothesis or concept is going to be justified or proven. Therefore this research has to analyse the consumer trends with the help of Descriptive research design. This selected descriptive research design enables the researcher to explore the context with the help of data collection and analysis method that generates the findings and conclusion of this research. The research approach refers the research conduction interactive patter and the handling process of the collected data at the time of conducting the research under selected methodology (Zikmund et al. 2017). In this context, in order to identify the most effective distribution strategy to reach the target consumers efficiently this research will conduct with the help of inductive research approach.
Source of the research:
The data source of any research is divided into primary data collection process and secondary data collection process. For this research, both Primary data collection and Secondary data collection process have been used. several critical research journals has been analysed to conduct the Secondary data collection that has helped to measure the performance of Distribution channel. The research also guaranteed that the chosen research papers and journals are completely authentic and relevant to the beverage industry of Australia. The purpose of this secondary data collection is to analyse the current dilemma in distribution process, which is already explained and examined in various authentic research. The primary data collection process has been conducted with the help real time environment analysis measurement tools.
The concept of this research method is finding the success level of the current distribution module of Nudie Juice from the perspective of the end term consumer. From this perception, this research will analyse the key hole of existing distribution channel that should be recovered. However the measurement parameters will be the number
Ethical Issues and Limitations
Ethical issues and limitations of the proposed research.
Ethical consideration is extremely essential to ensure the credibility and authenticity of the conducted research. The purpose of the ethical consideration of this study is to keep many moral and ethical factors within the execution of the research methods in mind. This research will completely abide by the data protection act and regulation (Nunan and Di Domenico 2013). The purpose of this research and the method of utilisation will be informed to the participants of the survey. The survey will not use the collected data or choice of the participants in any other operation except this particular research. The survey questions and the optional choices will be made in a ethical manner that will not harm the participant’s mentality, morality and perception.
Proposed time frame and budget of the research.
Time Frame:
Activity Staring Date Duration (Days)
Communicating with stakeholder 01-06-18 5
Making essential amendment in current research plan 05-06-18 3
Planning the aims and objectives of this research 07-06-18 5
Resource allocation to conduct the research 10-06-18 5
Collecting secondary data with literature review 15-06-18 10
Selection of appropriate research tools 22-06-18 2
Develop the Survey 24-06-18 2
Execute the Survey based data collection 26-06-18 10
Analyse the collected data 03-07-18 4
Finding conclusion 07-07-18 3
Gantt Chart:
Budget:
Activity Cost(USD)
Communicating with stakeholder 1500
Developing Research plan 800
Resource allocation 600
Payroll 2000
Decision Forecasting 300
Arranging literature review and secondary data collection 600
Subscribing research tool 200
Execute the Survey based data collection 800
Total 6800
Reference List.
Alkaya, E. and Demirer, G.N., 2015. Water recycling and reuse in soft drink/beverage industry: a case study for sustainable industrial water management in Australia. Resources, Conservation and Recycling, 104, pp.172-180.
Foxall, G., 2014. Strategic Marketing Management (RLE Marketing) (Vol. 3). Routledge.
Heath, J., 2014. Morality, competition, and the firm: The market failures approach to business ethics. Oxford University Press.
Huang, X.C., Yuan, Y.H., Guo, C.F., Gekas, V. and Yue, T.L., 2015. Alicyclobacillus in the fruit juice industry: spoilage, detection, and prevention/control. Food Reviews International, 31(2), pp.91-124.
Hutt, M.D. and Speh, T.W., 2012. Business marketing management: B2B. Cengage learning.
Jensen, B.W., Nichols, M., Allender, S., de Silva-Sanigorski, A., Millar, L., Kremer, P., Lacy, K. and Swinburn, B., 2012. Consumption patterns of sweet drinks in a population of Australian children and adolescents (2003–2008). BMC Public Health, 12(1), p.771.
Malhotra, N.K. and Peterson, M., 2014. Basic marketing research. Pearson.
Moretto, N., Kendall, E., Whitty, J., Byrnes, J., Hills, A.P., Gordon, L., Turkstra, E., Scuffham, P. and Comans, T., 2014. Yes, the government should tax soft drinks: findings from a citizens’ jury in Australia. International journal of environmental research and public health, 11(3), pp.2456-2471.
Nudie.com.au (2017). nudie – about us. [online] Nudie.com.au. Available at: https://www.nudie.com.au/about-us/ [Accessed 26 May 2018].
Nunan, D. and Di Domenico, M., 2013. Market research & the ethics of big data. International Journal of Market Research, 55(4), pp.505-520.
Ronit, K. and Jensen, J.D., 2014. Obesity and industry self-regulation of food and beverage marketing: a literature review. European journal of clinical nutrition, 68(7), p.753.
Sacks, G., Mialon, M., Vandevijvere, S., Trevena, H., Snowdon, W., Crino, M. and Swinburn, B., 2018. Comparison of food industry policies and commitments on marketing to children and product (re) formulation in Australia, New Zealand and Fiji. Critical Public Health, 25(3), pp.299-319.
Spowart, M. and Wickramasekera, R., 2012. Explaining internationalisation of small to medium sized enterprises within the Queensland food and beverage industry. International Journal of Business and Management, 7(6), pp.68-80.
Wilson, R.M. and Gilligan, C., 2012. Strategic marketing management. Routledge.
Zikmund, W.G., D’Alessandro, S., Winzar, H., Lowe, B. and Babin, B., 2017. Marketing Research: Asia-Pacific Edition. Cengage AU.
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