Optimal Media Investment Creative Strategies For Nexba Beverage: A Marketing Analysis

Situation Analysis

Discuss About The Optimal Media Investment Creative Strategies.

Digital communication is an integrated part of the marketing management. In the recent years, many organizations are focusing on the incorporation of digital communication into their product promotion strategy (Sheth & Sisodia, 2015). It is crucial for the business organization to restructure the marketing plan to gain competitive advantages. This study deals with the marketing plan and digital communication process in the context of Nexba Beverage. Nexba Beverage is an Australian beverage company. This company offers sugar free soft drinks (Nexba.com, 2018). This beverage company becomes popular due to their innovative and healthy product. In this current study the situational analysis, target market analysis and marketing mix will be discussed in the context of Nexba Beverage.

Situation analysis includes micro and macro environmental analysis. In the context of Nexba Beverage the environmental analysis is as follow:

In order to analyze the situation of the market, competitor analysis is crucial. Nexba Beverage is a popular beverage company in Australia. They offer sugar free soft drink. The stable political environment of Australia supports the entrepreneurs to establish business in this country. As a result, competition increases (Mobin, Dehghanimohammadabadi & Salmon, 2014). In the context of Nexba Beverage Coca-Cola Amatil and Boost Juice offer are the major competitors of this organization and they offer similar products in the same market. Social factor plays an important role to define the target customer of an organization (Lancaster & Massingham, 2017). Based on the purchasing behavior of the customers an organization selects its target market. Maximum people in Australia are health conscious.  Nexba Beverage focuses on health aware Aussie who prefers sugar free fizzy drink. The major supplier of Nexba Beverage is the Brisbane beverage supplier. From this supplier Nexba gets fresh raw materials for their soft drink within proper time. Public refers to the purchasing behavior of the mass population. In the context of Nexba beverage they focus on the high and middle class income group to sell their product. However, the economic condition of Australia is stable and maximum people belong from working class. Thus, the purchasing power is high. Moreover, the emerging technology of Australia Adds value in the business innovation of Nexba Beverage. Apart from this Nexba Beverage needs to follow the legal and Environmental laws to conduct a hassle free business in Australia.

From the SWOT analysis of assignment 1 it has been received that Nexba Beverage is famous for their natural product, low calories product and sugar free product. Therefore, their brand is innovative and they have good relationship with the retailers, which strengthen their business (Nexba.com, 2018). Their major weaknesses include narrow range of materials, high cost of marketing, high cost of product launching, lack of well recognized brand and challenges from Cola Brand. These hamper the market entry as well as the growth of this organization. Their opportunity includes high demand of healthy product, growing market and scope of digital marketing, which ensure the future growth of their business. Despite these opportunities Nexba Beverage is under various threats. Changing tax policy and regulatory structure of Australian Government hamper the flow of the business. On the other hand, high cost of distribution, changing behavior of the consumers, pressure from the big retailers and huge completion lead this business to face challenges in the global market.

PESTLE Analysis

From the Porter Five Forces Analysis it has been received that in the context of Nexba Beverage the bargaining power of the customers is low as their demand is met by this organization. Nexba Beverage offers healthy product, which is the current demand of Australian people. However, bargaining power of the supplier can be reduced by using effective communication with them (Dobbs, 2014). Such effective communication will help Nexba Beverage to establish a long term contract with the suppliers based on the price of raw materials. Threat of new entrants is moderate in the context of Nexaba Beverage as many new fruit flavors are started to enter in Australian food and beverage industry. On the other hand, threat of substitute is high as many beverage companies offer energy drink and juice products in the market. Moreover, threat of rivalry is high in the context of Nexba Beverage as it Coca Cola, Pepsi and other new companies become popular for their taste and flavor in Australian beverage industry.

In the recent years Australian food and beverage industry has been facing challenges due to the changing behavior of the customers (Tse et al., 2016). Therefore, the customers are more health conscious and they prefer diet friendly product. The rising demand of natural and organic food products leads the food and beverage industry to change their product feature. At present WHO and FDA focus on the ant-sugar movement, which creates a big challenge for beverage industry to change their product characteristic. In order to cope with these challenges Nexba Beverage has offered sugar free soft drink product. This will help them to avoid legal obstacle and meet the current market demand.

Table 1: Target Market analysis

(Source: Nexba.com, 2018)

The above table shows that target market segmentation in the context of Nexba Beverage is divided into consumer market and business market. The consumer market includes young and old population who prefer sugar free and low calorie drink. However, people become more health conscious in the recent years as a result, their purchasing behavior is changing day by day (Weinstein, 2014). On the other hand, in the business market segments the corporate and medical users also prefer organic and natural health drinks. Based this segmentation Nexba Beverage offers health drink with low calories and zero sugar. This will help such organization to meet the current demand of the people and satisfy them by providing quality product.

Analysis of Segmentation, Targeting, and Positioning Approach

Target market selection is a vital area of the marketing plan. In order to promote the product the business organization needs to select their target market as based on the target market they develop their product feature (Van Niekerk & Getz, 2016). The main target audience of the Nexba Beverage is the health aware Aussie, who concentrate on the purchasing of healthy product. They target 20 to 55 age groups of people. However, studies show that young people are more conscious about their fitness. On the other hand, aging population prefer healthy and organic beverage products due to their health issues. Based on this concept Nexba Beverage offers sugar free organic health drink to both young and aging population.

Figure 1: Positioning map

(Source: Van Niekerk & Getz, 2016)

Based on the above positioning map analysis it has been received that Nexba Beverage has got a good position in the Australian market due to their quality. Quality is the first priority of a marketing plan. However, to satisfy the customers it is important for the business organization to provide good quality product or service to the organization (Liu et al., 2015). Nexba Beverage is present in the second quadrant of the positioning map. However, Coca-Cola is the strongest competitor of this organization, which is present at the first quadrant in this map. The other two competitors are Boost Juice and Bundaberg Brewed Drink that are present in the third and fourth quadrant. Hence, from the above positioning analysis it has been received that Nexba Beverage is present in a growth phase in Australian food and beverage industry. This positioning analysis ensures the future growth of Nexba Beverage through providing high quality product.

• To increase sale by 4% in 2018
• To develop a strong brand recognition
• To increase the market share by 2%
• To improve the external and internal communication process

• To reduce the operation cost by 3%
• To set proper budget for the marketing plan
• To select cost effective promotional tool

Application of marketing mix analysis is an important strategic analysis. In order to develop a marketing plan it is important to use marketing mix strategy to evaluate the product, price, place and promotion of an organization (Abril & Sanchez, 2016). Nexba Beverage has medium product portfolio. They offer traditional soft drink. They provide sugar free Lemon, Cola and Orange Sparkling Infusions. Nexba is the first organization that offers natural sugar free soft drink. They use organic materials in their product, which ensures the good health of the people. Next the pricing strategy is important component of the marketing mix strategy. Nexba sets their pricing strategy based on the target market segmentation. Therefore, they give assurance of high quality product thus, they focus on the premium pricing strategy. However, based on the competitors they change their pricing strategy. However, the beverage industry is known as oligopoly market. Oligopoly market includes few sellers and large buyers (Seng, 2016). Thus, it is important for Nexba to make a balance between the seller and the pricing strategy. Marketing mix enables Nexba to select a proper pricing strategy, which will help them to enhance their sale and to gain competitive advantages.

Discussion of the Market Segment

Place is third element of marketing 4ps. Selection of effective distribution pattern is crucial for an organization to deliver their product in the target market domain (Snyder & Garcia-Garcia, 2016). However, Nexba follows FMGC distribution strategy. They have an effective distribution network to capture both urban and rural market in Australia. They have selected the stores at crowded areas to deliver their products. However, sell of an organization depends on the selection of the stores. Therefore, the promotional mix the most vital element of the marketing mix. It is crucial for the every organization to select a proper promotional strategy and tool to introduce the product in the target market domain. However, the success of a product promotion depends on the selection of promotional strategy. Nexba Beverage has adopted different types of advertising and promotional strategies to create an increased demand in the local and global market. The focus on the value based advertising. They use both traditional and digital media to promote their product. One of the major advertising tools of Nexba is the social media advertising. They use Facebook and Twitter to promote their product via online. On the other hand, they also focus on website designing to share their product value among the customers domain.

Implementation of marketing mix is crucial introducing this strategy. However, to develop a quality product it is important for an organization to carry out the market research to understand the current demand of the customers (Feldman & de Mello e Souza Meth, 2015). Market research helps Nexba to identify the current market demand. Nexba founds that healthy product is the current demand of Australian consumers. This information is gathered by conducting a huge market research. Next to set the pricing strategy it is important to identify the income level of the customers and the pricing strategy of the competitors. To find the proper delivery area it is important for Nexba to choose the locations where the products are available and customer can easily purchase the products from this location. Therefore, proper communication needs to be done with the delivery channel. Finally the last stage of the marketing mix is the implementation of promotional mix. Nexba has recruited technical experts to design the websites and to share the product information via social media. They share their product portfolio via Facebook. Moreover, a budget is selected for the promotional mix before its implementation.

The promotional objectives of Nexba include creating brand awareness, cover large number of customers and enhance the sales revenue generation.

Target Market Selection and Positioning Approach

Table 2: Budget of promotional mix in Nexba

(Source: Author)

From the above budget table it has been received that newspaper and magazine are the traditional media of advertising. However, such traditional media are more costly in comparison to the digital media. It has been found that the email marketing is more cost effective process. The traditional media helps to create brand awareness among the consumers. On the other hand, the social media is effective to cover a large number of customers from different locations. Therefore, email marketing, web advertising and social media help to enhance the revenue.

Conclusion

The entire piece of work deals with the marketing planning of Nexba Beverage. However, this company offers sugar free soft drinks to the customers. In Australia maximum customers are health conscious thus, Nexba Beverage is able to meet the current market demand by offering their healthy products. Moreover, the digital promotion is effective to introduce their products in the customer domain. By using the social media marketing Nexba will be able to share their product information in a large consumer domain. Social media advertising is the most cost effective advertising, which leads the product in different consumer domain.

References

Sheth, J. N., & Sisodia, R. S. (2015). Does marketing need reform?: Fresh perspectives on the future. Routledge.

Lancaster, G., & Massingham, L. (2017). Markets and customers: market boundaries; target marketing. In Essentials of Marketing Management (pp. 70-101). Routledge.

Dobbs, M. (2014). Guidelines for applying Porter’s five forces framework: a set of industry analysis templates. Competitiveness Review, 24(1), 32-45.

Tse, Y. K., Matthews, R. L., Hua Tan, K., Sato, Y., & Pongpanich, C. (2016). Unlocking supply chain disruption risk within the Thai beverage industry. Industrial Management & Data Systems, 116(1), 21-42.

Van Niekerk, M., & Getz, D. (2016). The identification and differentiation of festival stakeholders: A new perspective.

Weinstein, A. (2014). Target market selection in B2B technology markets. Journal of Marketing Analytics, 2(1), 59-69.

Liu, H., Liu, Y., Ji, Y., Zhang, H., & Zheng, Z. (2015). Design and Implementation of Target Positioning System Based on Map API. In The Proceedings of the Third International Conference on Communications, Signal Processing, and Systems (pp. 521-531). Springer, Cham.

Abril, C., & Sanchez, J. (2016). Will they return? Getting private label consumers to come back: Price, promotion, and new product effects. Journal of Retailing and Consumer Services, 31, 109-116.

Seng, S. (2016). Project of Digital Marketing Strategy for ACLEDA Bank Plc in Cambodia.

Snyder, J., & Garcia-Garcia, M. (2016). Advertising across platforms: Conditions for multimedia campaigns: A method for determining optimal media investment and creative strategies across platforms. Journal of Advertising Research, 56(4), 352-367.

Feldman, L., & de Mello e Souza Meth, C. (2015). TAP into Purpose; A Promotional Plan for a Small Business.

Mobin, M., Dehghanimohammadabadi, M., & Salmon, C. (2014, May). Food product target market prioritization using MCDM approaches. In Proc. of the 2014 Industrial and Systems Engineering Research Conference (ISERC), Montreal, Canada.

Nexba.com. (2018).Nexba Beverage. Retrieved on May 18 2018, from: https://www.nexba.com/

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