Boost Juice: Marketing Principles and Strategies for a New Product

This report discusses the marketing principles and strategies of Boost Juice, a fruit juice and smoothie firm in Australia. It includes micro and macro environment analysis, SWOT analysis, market segmentation, positioning statement, rationale for the new product, and marketing mix strategies for the new product.

Marketing
Principles
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Executive Summary
Boost Juice is a fruit juice and smoothie firm founded in Australia by Janine Allis in March in
the year 2000. The report selected Boost Juice as a juice brand operating in Australia. It
summarized the company and the industry with relevant facts. It also discussed the micro-
environment and macro-environment analysis along with SWOT analysis of the company. It
provided four market segments of the juice brand for considering the targeting. It also included a
positioning statement and illustrated the position of the juice brand. It gave the rationale of the
new product and strategies of the marketing mix for the new product.

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Table of Contents
Introduction.................................................................................................................................................3
Summary of Company.................................................................................................................................3
Overview of Industry...................................................................................................................................3
Micro Environment Analysis and Macro Environment Analysis..................................................................3
SWOT Analysis.............................................................................................................................................5
Market Segmentation..................................................................................................................................6
Positioning...................................................................................................................................................7
Rationale for the New Product....................................................................................................................8
Marketing Mix.............................................................................................................................................9
Recommendations and Conclusion...........................................................................................................12
References.................................................................................................................................................13

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Introduction
The report will select Boost Juice as a juice brand of Australia. It will discuss the marketing
principles of the company in terms of the micro-environment and macro-environment analysis,
SWOT analysis, market segmentation, and positioning statement. It will provide the rationale
and strategies of the marketing mix for the new product.
Summary of Company
Boost Juice is a fruit juice and smoothie firm founded in Australia by Janine Allis in March in
the year 2000 with its head office in Chadstone in Melbourne. The firm had started locally but
expanded in 467 locations, with 500 stores in 13 nations internationally (Boostjuice.com.au,
2019).
Overview of Industry
The revenue of the industry of Juice and Smoothie Bars in Australia has increased since the last
five years due to growing consciousness for health among the people of Australia. The concerns
of the consumers for the outcomes of unhealthy diets like obesity and heart disease has increased
over the period and raised the demands for vegetable and fruit products (Abril and Rodriguez-
Cánovas, 2016). This industry has benefitted from this trend by considering the benefits of its
products for the health-consciousness people of Australia. The revenue of this industry has been
expected to grow annually at a rate of 7.5% for the last five years through the year 2018-2019 to
$446.7 million. It also consists of the expected growth of 5.2% in the year 2019 (Ahmad and
Ahmad, 2017). Boost Juice has entered Australia in the year 2000 and since then made the
smoothie and juice bars famous in high streets, densely populated urban areas and shopping
malls in Australia. It is the largest player in the industry of Juice and Smoothie Bars in Australia
and continuing to dominate the industry for the last five years.
Micro Environment Analysis and Macro Environment Analysis
Micro Environment Analysis
Company - Boost Juice is a fruit juice and smoothie firm founded in Australia by Janine Allis in
March in the year 2000. The firm had started locally but expanded in 467 locations with 500

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stores in 13 nations internationally. It is the most significant player in the industry of Juice and
Smoothie Bars in Australia and continuing to dominate the industry for the last five years.
Customers - The customers have the capability to lower the price of the new product, and they
can switch from one product to other product (Akay et al., 2016). They will have high bargaining
power if there are several alternatives available in the market. On the other hand, they will have
low bargaining power if there are fewer options for switching and choices available in the market
of Australia.
Suppliers - The suppliers have the capability to decrease and increase the price of the new
product (Bougenvile and Ruswanti, 2017). If there are fewer suppliers available, they will have
high bargaining power, and the juice brand has to buy the raw materials in the supplier's terms. If
there are several suppliers available, they will have low bargaining power; the juice brand does
not have to face the switching costs.
Intermediaries - The specified distributor who will be selected by Boost Juice will distribute the
new product. The intermediaries will include manufacturer, wholesalers, retailers, and finally the
consumers. The original product will be supplied by the chosen to the wholesaler as well to the
retailer, and the retailer will sell the new product to the consumers.
Competitors - Although Boost Juice is the largest player in the industry of Juice and Smoothie
Bars, the company will have to face stiff competition in Australia. Top Juice, Viva Chain, and
Pulp Juice are the main competitors of Boost Juice in Australia (Bull et al., 2016).
Publics - The juice brand will offer fresh coconut juice to the people who prefer a healthy
lifestyle. Boost Juice will target the age group of 10 to 50 years, both male and females, those
who are aware of the diets and drinks and want to look good and stay fit.
Macro Environment Analysis
Demographic - Boost Juice will target both male and females, those who are looking for healthy
alternatives to look good and stay fit.
Economical - The current position and economic trends in the juice market in Australia can
impact the new product. Fluctuations in exchange rates, changes in the disposable income of the
consumers, and the effects of globalization might affect the economy of Australia (Calvo-Porral,

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Stanton and Lévy-Mangin, 2016). As a result, it can influence the juice brand and its new
product.
Natural - The new product of Boost Juice needs to the environmentally friendly product so that
it does not affect the natural environment of Australia.
Technological - Use of new technologies, the launch of new technology, and access to new
technology can affect the juice brand and its new product.
Political - The new elections and changes which will take place in the nation because of
legislative elections might affect the new product. Influential politicians and their viewpoints on
corporate policies may also affect the juice brand (Comino and Ferretti, 2016).
Cultural - Changes in cultural attitudes and trends, generation shifts, standards of lifestyles, and
cultural believers may influence the new product of Boost Juice.
SWOT Analysis
Strengths Weaknesses
 Brand image
 Innovative product
 Lack of product awareness
Opportunities Threats
 An increasing number of health-conscious
consumers
 Growing awareness of the consumers
 Growing competition
 Pricing pressure
Strengths
Brand Image - Boost Juice is the largest player in the industry of Juice and Smoothie Bars in
Australia and continuing to dominate the industry and superior brand image.
Innovative Product - There are several juice products and beverages such as orange juices and
mango juices available in the market of Australia. But no juice and beverage company has
launched coconut juice.
Weaknesses

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Lack of Product Awareness - As the juice product will be new in the market, it might fail for
creating awareness for the product to the consumers.
Opportunities
Increasing Number of Health-Conscious Consumers - It will be a significant opportunity for
Boost Juice to launch the new product as the people of Australia are becoming conscious of their
health.
Growing Awareness of the Consumers - It will be advantageous for the company as the
Australians are becoming aware of their drinks and diets.
Threats
Growing Competition - The competition in the industry of Juice and Smoothie Bars of
Australia is growing continuously. So the company might face stiff competition for its new
product.
Pricing Pressure - The price of the new product might be reduced due to stiff competition in the
industry of Juice and Smoothie Bars of Australia.
Market Segmentation
Geographic Demographic Psychographic Behavioral
 It is dividing the
juice market of
Australia based
on its geography
 The juice brand
will be launched
in populated
urban areas of
Australia through
its outlets in
Australia
 These outlets will
 Boost Juice will
target the age
group of 10 to 50
years, both male
and females,
those who are
aware of the diets
and drinks,
looking for
healthy
alternatives to
look good and
 Those who are
busy and want to
lead healthy
lifestyles will be
the targeted
customers of
Boost Juice
 The juice brand
will target the
health conscious
people and
provide value to
 Most of the
consumers will
prefer the new
product thinking
of it is healthy
and that it will be
supportive of
their bodies
 The new product
will be fit for two
age groups
 The age group of

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in shopping malls
which will allow
the customers to
access the new
product easily
 The shopping
malls also attracts
the young
consumers, as
they will be
significant
customer segment
of Boost Juice
stay fit
 The target market
will be selected
irrespective of
income and
occupations
 It has been found
that 1.8% females
and 1.6% males
prefer fruit and
vegetable drinks
in Australia
(Nowak et al.,
2015)
the needs and
demands of its
customers as
several consumers
will prefer
healthy drink as a
replacement to
fast food
(Tabaraki et al.,
2016)
 The juice brand
will evaluate all
the psychographic
factors for
targeting its
market and
ensuring profits
and success
10-25 will expect
the new juice
product not only
tasty but also
attractive and fun
 The excellent
packaging and
taste of the
product will be
the vital factors
for this customer
group
 The age group of
26-50 are mostly
healthy eaters and
will prefer the
ingredients of the
new product
 Quality of the
new product will
be the significant
factor this
consumer group
Positioning
Positioning Statement - Boost Juice is the provider of right and healthy juice for health-
conscious people who want a healthy body, look good, and stay fit.
The positioning of the new product in the marketing strategy of Boost Juice will signify that the
marketers are trying to create awareness and positioning in the minds of the customers for the
new product of Boost Juice. It will be the relative comparison of the new product in the market

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of Australia as perceived by the customers. The coconut juice of Boost Juice will help in
maintaining good health and as a result, will create added value in the mind of the consumers
regarding this new product and motivate them to purchase the product regularly. Regular
advertisements on TVs, radios, and internet will help in reaching the message of the juice brand
to the targeted customers. Boots Juice will position its new product, the coconut juice as a
superior quality product, reliable, and an affordable price (Resnick et al., 2016).
Figure: Position of Boost Juice
(Source(Seddon, 2015)

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Rationale for the New Product
The new product, the coconut juice will be launched as Boost Juice wants to deliver such product
that will not be detrimental to the health of the people of Australia. The new product will be
mainly for health-conscious consumers, and so it will be made of natural ingredient with low fat
and no artificial materials, preservatives, sweeteners, and flavors. The juice brand will customize
the new product as per the needs and taste of the people of Australia.
Marketing Mix
Product - In order to satisfy the needs of the consumers, Boost Juice has to maintain the best
quality for its new product. So, the company needs to take the following measures:
 The new product has to be manufactured through high-quality machinery
 The fruits need to be of superior quality collected from Australia
 The new product must be tested in the laboratory for maintaining the standard and
quality of the new product (Datta, Ailawadi and van Heerde, 2017)
 It needs to be healthy, completely untouched, free from any chemicals and marketed with
superior quality food package
The offerings of the new product are as follows:
Product Size Offerings
Original
Medium
Junior
Pet Bottle
Pet Bottle
Glass Bottle
Pricing - As Boost Juice is going to launch a new juice product in the Australian market, the
juice brand will have no idea if the cost will be accepted or not by the consumers. If the company
choose a high price, the consumers will purchase the new product, and the sales of the company
would be low (Phadermrod, Crowder and Wills, 2019). If the company select a low price, the
juice brand will not be able to cover the expenses. Hence, the juice brand has to consider the
following aspects for its pricing strategy:
Customer-based Strategy - As the new product will face competition against the beverages and
fruit drinks, the price of the new product needs to be accepted by the consumers. The new

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product will fulfill both beverage and nutritional needs (Sonntag et al., 2015). For this additional
utility, the company will implement penetration price strategy with its competitors.
Competition-based Strategy - If the new juice product is accepted by the consumers in the
future, more competitors will access the Australian market (Duffett, 2018). Thus, the pricing
strategy of Boost Juice has to be such that market shares could be protected during the
competition. The juice brand also needs lower the cost so that it could hold the market shares
during the competition.
Cost-based Strategy - As the main aim of Boost Juice is to gain profit, it must not fix the price
as such that it could not cover the expenses of the new product. After the expenses are covered,
the company can fix the profit margins for its pricing (Lin and Krishnamurthy, 2017).
Product Size Price
Original
Medium
Junior
$7
$6
$5
Placement - There are four main kinds of distribution channel for marketing; vertical marketing
channel, traditional marketing channel, hybrid marketing channel, and horizontal marketing
channel. Boost Juice will choose the traditional channel of marketing for distributing the new
product Consumers will be able to purchase the product from the market of Australia (Wu and
Li, 2018). The distribution strategy will include manufacturer, wholesalers, retailers, and finally,
the consumers. A specified distributor who will be selected by Boost Juice will distribute the
new product. The new product will be supplied by the chosen to the wholesaler as well to the
retailer, and the retailer will sell the new product to the consumers. There are three kinds of
strategies of distribution; intensive distribution exclusive distribution and selective distribution.
Boost Juice will select the intensive distribution strategy for the new juice product.

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Figure: Supply Chain
(Source: Sun, Garrett and Kim, 2016)
Promotion The promotional activities for the new product of Boost Juice will be in different
schools and colleges of Australia. Ads will be on TVs, radio, magazines, billboards, internet, and
newspapers. The themes of the advertisements will be changed, and promotional activities will
be conducted regularly to attract new and old customers of the juice brand (Tatlow-Golden et al.,
2017). In different occasions, Boost Juice can open special sales counter where the new product
will be displayed to create a positive image in the mind of the consumers.

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Recommendations and Conclusion
Recommendations
It is strongly recommended that the firm should launch innovative products within the market
and improve the quality of all its products in order to get the desired competitive advantage. It is
due to the fact that the competition is rapidly becoming stiff in the industry of Juice and
Smoothie Bars.
Conclusion
The report concluded juice brand as one of the fastest growing companies of Australia that needs
to improve its product quality with new innovative ideas. The paper also discussed the marketing
principles of the company in terms of the micro-environment and macro-environment analysis,
SWOT analysis, market segmentation, and positioning statement. Furthermore, the paper helped
in concluding the rationale and strategies of the marketing mix for the development and launch
of the new product.

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