Boost Marketing Strategies for International Expansion
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Boost is a health conscious brand providing juices, smoothies and juice bars. This article discusses Boost's marketing strategies for international expansion, market segmentation theory, marketing mix theory, and Hofstede's communication theories.
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1.There are different techniques that are used by Boost brand. Company basically provides juices, smoothies and juice bars. It focused on providing quality products and services to the customers. This is a health conscious brand as their drinks consists of high protein, spirit, super- food and tropical. Their products are low fat and never use artificial flavors and preservatives. It products are developed as per the targeted customers. It developed its taste according to the choices and preferences of customers(LaPlaca, 2007).They have also introduced some tailor- made drinks. There are different marketing strategies that have been adopted by Boost. Their prices of all the drinks are very low and this strategy has been adopted to attract more and more customers(Nader, Dubrow and Stamm, 2014).Boost drinks are affordable for each type of market segment. This also helps in facing the tough competition in the market. Boost knows that there are different type of customers all over the world and those people have various taste and habits. Boost has focused on its marketing strategy and assured that its promotional strategy should be different for foreign market from it local market strategy. Promotional strategies are developed by considering habits, purchasing power and consumer interest. Company has started following strategies related to franchising when it comes to expansion. Boost selected the experienced local players for this strategy to get the same successful. Boost always tried to maintain the integrity and the brand message of the organization to sustain in the competitive environment. Boost has also followed a marketing approach related to above the line and below the line marketing and due to this it got a high percentage of market awareness in the period of five years. In this, for above the line marketing, company uses social media, radio campaigns and televisions and for below the line, it uses e- mail marketing, social media marketing, and customer service and media coverage(Hall and Hall, 2014). 2.There are different strategies that have been adopted by Australia for the marketing of Boost. Boost is an amazing drink with healthy ingredients. It has customized its drinks for the happiness and satisfaction of customers. Boost has adopted very basic as well as common strategies in Australia that can be easily adopted by US or any other country. It has kept the prices very low for the drinks so that every class of people can easily consume the same without thinking over it. It has maintained the fat level very low and protein level very high in the drinks and t can be proved as a very effective technique (Homan et al., 2012). According to me, people in US are suffering from Obesity and they are having a lot of unhealthy food so Boost can promote its
drinks by making people aware about their health. In case of franchising, to reach to local experienced people will not work in US because there are so many big brands already selling their drinks and local people always prefer to work with those brands instead of Boost. However in small towns, this technique can work. Boost can also use above the line and below the line marketing strategy in US due to the availability of mix population (Pitsiladis and Beis, 2012). People are very much addicted to social media and internet so I think below the line strategy can work very efficiently in this case.Boost can start its promotional advertisement on social media to make it reach to the large number of population. 3.As per my analysis, there are differences between the culture of Australia and America. People in both the countries are really different and somewhere it impacts the taste and preferences of the people. Their needs and wants are different and different way of thinking makes them to choose different products. In America, there are mostly Americans who are staying there so it is not difficult to provide drinks to them because they have a similar choice and taste but when it comes to Australia, there is a mixed population. There are people from different parts of world that stays in Australia so it becomes difficult to create marketing strategies fir mixed population. After world war second, many people from Canada migrated to Australia and Australia has opened its immigration for having high population. There are differences in the choices of disposing the income. People in Australia are very simple as the have a typical attitude and lifestyle and most of the people lives in outskirts and enjoys their informal lifestyle. As per my analysis and understanding, Americans are usually more open to spend on food and believes in carrying a lavish and healthy lifestyle. Australians are very straight forward and they can never compromise on the quality of the products. Both the countries are big players in global market and they can easily expand the business in other countries. In America, there are some very strict rules and regulations that create an impact on the flexibility of operations of Boost whereas In Australia, there are no such kinds of issues. The Economy of Australia a stronger from other countries in recent years and this is an advantage for doing business in Australia. Culture should be on highest priority when it comes to marketing of any product. There are different systems of doing the business and marketing so it is important to understand the scenario of other cultures (Cahill, 2012).
4.Market segmentation theory refers to design the product as per their choice and that can satisfy the needs of the customers. According to me, there are different needs of different type of customers so market segmentation helps an organization in maintaining the same. Market segmentation is a technique of segmenting the product as per the customer’s willingness to spend/. Market segmentation can also be done on the basis of demographic, behaviors as well as desires of the customers (Zourrig, 2016). Boost has adopted this strategy by providing very low cost product to a different segment of customers and customized products for a different class of customers. It helps them to concentrate on different market segments in a different way. Marketing mix theory includes 4Ps of the market. The four P’s helps an organization to make strategies that can be effective in the long run. First ‘P’ is product and it refers to the variety and customization of the product Boost is providing to the customers and whether it is suitable and affordable for the customers or not. Second ‘P’ refers to the price of the product and as we have discussed that Boost juice is providing its drinks in a very low price. Price helps in managing the demand and determines profit margins. Third ‘P’ is place and Boost juice s continuously expanding its business in an effective manner and it became successful in each and every location where it started operating the business. Last ‘P’ is promotion and Boost juice is actively focusing on its promotional activities so that it can reach to everyone (Ruzhansky and Wirth, 2010). Hofstede’scommunicationtheorieshelpininterculturalcommunicationandanalyzing intercultural differences. There are basically five dimensions that can help in dealing with cultural differences among different countries. There are five dimensions in this model that helps in managing inter cultural customers. This model is helpful for Boost juices because it has to deal with people belongs to different cultures and provide them full satisfaction. Small v/s Large Power distance- It shows the level of inequality by people whether they have power or not. In case of Boost, there is not any concern related to inequality. Individualism v/s collectivism- It refers to the strength generated between individuals with some community. There is a value of a person’s time and his feelings. There is more collectivism in case of Boost.
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Masculinity v/s Feminity- There is some societies that differentiate male and females and treats them in a different way. Such cultural inequalities cannot create any impact on marketing of Boost drink. Low uncertainty avoidance v/s high uncertainty avoidance- It refers to the feeling of anxiety that people of society feels when there is uncertain or unwanted situations. In high score nations, there is a degree of security and low score nations enjoys their freedom. Short term orientation V/s Long term orientation—it refers to the societies that still believes in old traditions. This is generally found in Asian countries. People treat each other in an equal way and help each other as well. 5.According to my analysis, Boost brand can easily launch in American market as it is providing health drink to the customers as per their choices They also provides customized drinks to satisfying the needs of the customers. This brand has adopted attractive marketing techniques that can easily attract a high number of customers (Bases of Market Segmentation Success: A Marketing Decision Makers’ Perspective, 2016). American market is a developed market and there are people belong to different income groups. People in America have started focusing on their health and they neither are nor more health conscious in comparison to their previous food and drink choices. According to me, the economic condition of the country is good and stable market is perfect for Boost drink. People in America always promote such drinks (Woodall, 2007). The population of America has almost same taste, choices and preferences that can helps in remove most of the challenges. Boost can use a common marketing technique that can create an impact on each target market segment. There are some restrictions and strict rules and regulations in America that has been controlled by the government. Such restrictions may create a hindrance in the flexibility and operation of Boost juice. The reviews of Boost juice are very good and now it has become a renowned brand. Customers from existing countries like the drinks very much. As per my views, Boost juice can adopt some different marketing techniques to launch the drinks in America as they can provide free samples and seminars on the benefits of having Boost juice. It can easily attract those people who are very concerned about their health. Boost juice can also target different class of customers in different ways.
There are customized drinks that are little high in price so Boost can suggest or advertise those drinks to high class customers (Perreault and McCarthy, 2007). References- Bases of Market Segmentation Success: A Marketing Decision Makers’ Perspective. (2016).International Journal of Business and Administrative Studies, 2(3). Cahill, D. (2012).Lifestyle Market Segmentation. Hoboken: Routledge, Taylor and Francis. Hall, E. and Hall, M. (2014).Understanding cultural differences. Boston, Mass.: Intercultural Press.
Homan, K., Houlihan, D., Ek, K. and Wanzek, J. (2012). Cultural Differences in the Levels of Rewards between Adolescents from America, Australia, Tanzania, Denmark, Honduras, Korea, and Spain.International Journal of Psychological Studies, 4(2). LaPlaca, P. (2007). Industrial Marketing Management.Industrial Marketing Management, 36(7), p.843. Nader, K., Dubrow, N. and Stamm, B. (2014).Honoring differences. New York: Routledge. Perreault, W. and McCarthy, E. (2007).Basic marketing. Beijing: Ji xie gong ye chu ban she. Pitsiladis, Y. and Beis, L. (2012). To drink or not to drink to drink recommendations: the evidence.BMJ, 345(jul18 3), pp.e4868-e4868. Ruzhansky, M. and Wirth, J. (2010).Progress in analysis and its applications. Singapore: World Scientific. Srivastava, R. (2012). Shift of Marketing Mix to E-Marketing Mix: The Birth to New Era.SSRN Electronic Journal. Woodall, T. (2007). New marketing, improved marketing, apocryphal marketing.European Journal of Marketing, 41(11/12), pp.1284-1296. Zourrig, H. (2016). Cross-cultural individual differences in Customers’ Sensitivity to the Service Failure.Personality and Individual Differences, 101, p.529.