Business Marketing Analysis and Strategy

This report analyzes the weaknesses and strengths of a firm in the food and beverage industry, with a focus on marketing strategy. It also discusses the launch of a new flavored energy drink and the use of digital mediums for marketing. The report includes a SWOT analysis, Porter's five forces analysis, and marketing objectives.

BUSINESS MARKETING

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Executive Summary
Different industries are facing many challenges and the strategies such as new product
development for their success. This report analyses the weaknesses and strengths of the firm.
In this analysis it is found that quality of the product is on the higher side and it has
weaknesses in its marketing campaign. Higher competition is the biggest threat they face and
has huge amount of opportunities in the Asian market. Industry evaluation has been provided
in the report. Company plans to launch Flavoured energy drink having flavours of different
fruits. For reaching to maximum possible customers they need to take the use of digital
mediums as a part of marketing strategy. They aim to target people from all the sections of
the society. Marketing mix for this new product has also been given by the firm.

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Contents
Executive Summary...............................................................................................................................1
INTRODUCTION.................................................................................................................................2
SWOT analysis......................................................................................................................................2
Porter’s five forces analysis...................................................................................................................4
New product..........................................................................................................................................5
Marketing objectives.............................................................................................................................5
Marketing strategy.................................................................................................................................5
Positioning strategy...............................................................................................................................7
Marketing mix.......................................................................................................................................7
Conclusion.............................................................................................................................................8
REFERENCES......................................................................................................................................8

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INTRODUCTION
Food and beverage industry is growing at fast speed and hence many companies have come
up into the industry. The Better Drinks Co. Limited is one of those companies that deal in the
production and marketing of different types of drink. This company has large numbers of
products which includes apple, cranberry, black current, lemon sodas, water, grapefruit,
mango, raspberry, super food and most importantly Orange juices. The Better Drinks Co.
Limited was established back in 1999 in New Zealand and currently it is Asahi Holding’s
subsidiary. Marc Ellis, Stefan Lepionka and Simon Neal were the three friends that launched
this firm (Better Drinks, 2018). This company operates in the working name of Charlie’s
Group Limited. At the beginning, the cited firm only sold the Orange juices while in 2001 it
expanded the product range to other products. Company operates with a mission of becoming
the best in the Drink’s business and it operational vision is to spread a little good all across
the globe with the help of juices that are tasty and is made up of high quality ingredients.
SWOT analysis
Strengths
 Large amount of products are marketed by the organisation, which is able to lure the
taste buds of the fruit lovers.
 The Better Drinks Co Limited has their farm production area where they grow their
raw fruits and hence they are able to maintain the quality of their drinks.
 Advanced technologies have been used by the firm in terms of automation
technology. This helps in doing fast production and helps in reducing the wastage in
processing of juices (Bloomberg, 2018).
 Their products contain a high nutritional value and hence they are able to make their
name in the market and maintain a fair amount of loyal customers.
Weaknesses
 They have a weaker brand image outside Australian Sub-continent. It is difficult for
the company to enlarge their loyal customer base as there is less population in this
region and competition is too high.
 They have a poor marketing campaign when compared with their competitors as the
advertisements are not so much attractive.

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 The Better Drinks Co Limited is not using online mediums for the sale of the
products.
 The distribution channel of ‘The Better Drinks Co Limited’ is poor hence they restrict
the ability of the company to achieve higher sales.
Opportunities
 Firm has large amount of opportunities outside Australian sub-continent. Looking
towards Asian region could be beneficial for the firm. Asian region has higher
numbers of people with almost no monopoly of any specific company in this sector
(Trought & Bramley, 2011).
 Company can improve its distribution network so as to reach to large customer base.
In this the role of their business partners can be beneficial.
 The cited firm has huge opportunities to sell their products through online mediums
and they can reach to maximum possible customers at faster speed.
 There are huge numbers of suppliers available in different markets that help them in
availing raw materials at cheaper rates. This is necessary for increasing the profit
margins of the company In the amount of competition that exist in the modern day
business.
 Health conscious people are increasing at much faster rate who is demanding for high
quality fruit juices.
Threats
 The competitive forces in the industry have gone to alarming levels. Both small and
big competitors are giving tough fight to The Better Drinks Co Limited at the ground
levels.
 There is a significant downfall in the overall stability of the world. This is putting
negative effect on the expansion plans of the firms.
 Climate change has affected the production of many fruits and the abrupt changes in
the atmosphere are degrading the quality of fruits which is directly affecting the
business of the company.

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Porter’s five forces analysis
In order to evaluate the internal environment of drinks industry, the use of porter’s five forces
can be very much beneficial. The analysis is provided below:
Bargaining power of consumers: Range of options are available with the people if they
want to buy juices. There are both local and international players available in the market.
Their products are of high quality and are available at the lower cost. Since there is no much
scope of differentiation in the drinks products hence the bargaining power of customers
resides on higher side.
Bargaining power of suppliers: Many small scale suppliers are available in the market.
Along with this, there are certain big suppliers that provide high quality raw materials to “The
Better Drinks Co Limited”. Company itself grows its fruits for the juices hence the
bargaining power of the suppliers is one the lower side.
Competitive rivalry: There are large numbers of small and big fruit juice producer
companies are available in various parts of the world (Panel, 2014). It is reducing the firm’s
chances to sale more numbers of products. In the niche market also the competition had gone
to cut throat level hence succeeding in such an environment can be difficult job for the
company. Both localised and globalised strategies had to be used by the companies so as to
gain advantage over the rivals.
Threat of new entrants: Since the cost involved in the business of fruit juice production is
on the lower side hence this threat is on the higher side. This business is very much profitable
when compared with other industries hence there are many investors that are trying to enter
into this business (Sivakumaran, Huffman & Sivakumaran, 2018). This makes the threat of
new entrants to be on the higher side.
Threat of substitutes: They are other types of fruit meals that are available in the market and
they are capable of replacing the fruit juices. This brings the threat of substitution to be on the
higher side. With further innovations in the industry, this threat is going to become bigger.
New product
New products help the company to attract new set of consumers towards them. Following the
new product development strategy, this company is planning to bring high quality energy
drinks which contains different fruit flavours. The product will be marketed in all price range

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and in all sizes. Taking use of the cans can be beneficial for the firm for packaging. This
product provides high nutritional value and helps in facing challenges related to different
health issues. The product is made up of high quality fruit ingredients and it’s expire time is
large.
Marketing objectives
‘The Better Drinks Co Limited’ needs to define its marketing objectives in an appropriate
manner. For the energy drink product, the marketing objective of the company is as follows:
 The better Drinks Co Limited aims for enhancing its market share by adding the new
set of customer with the help of new products. This needed to be done from the
perspective of profit share and revenue that firm earns.
 The cited firm is aiming to generate a new market segment for itself. The market
segment they want to attract consists of the people that are health conscious or are
associated with any kind of sports activities.
 This firm is aiming to enhance the sales of the firm by marketing it with the help of
online mediums.
Marketing strategy
For the success of the organisation, making an effective marketing strategy is very much
crucial for any firm (Sun‐Waterhouse, 2011). This helps the organisations in achieving the
desired objective and improves the position of the company in the market. Appropriate
marketing strategy for the launch of this new product has to be made considering the
challenges that company is facing in the market. The strategy that enables companies to
attract particular market segment are always effective. In this the role of the segmentation and
targeting strategy becomes very much crucial. There is increase in the energy drink market in
different parts of the world. Since most of the energy drinks are not available in fruit flavours
hence this product can attract people from different segments of the society. Because of fruit
taste, company will be able to attract large set of people. Company has placed the prices of
the products on the competitive side so as to achieve advantage over the rivals in the market.
For segmentation and targeting the variables that have been used by the company are:
Geography: The Better Drinks Co Limited is targeting customers from various corners of the
world at both international and national levels. In order to target both regional and

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international target market, the firm is using both localised and globalised strategies.
Localised strategy is used in the business areas such as pricing, human resource management
and supply chain management (Heckman, Sherry & De Mejia, 2010). Globalised strategy is
implemented by the company in the areas such as marketing and quality management.
Following this variable company aims to target people from both rural and urban regions.
Demographics: In terms of demographic variables, The Better Drinks Co Limited is
targeting people of all ages. Both bachelors and married people of both the genders are
targeted by the company. Since the products are available at lower cost hence they will be
able to attract people of all age groups and they can be from any professional group i.e.
employees, students and professionals. This company basically focuses on the young
generation people as their demand for energy drink is higher than any age group.
Behavioural: Behaviour differs from person to person but there are some common set of
behaviours based on which company is targeting people. Following loyalty criteria, firm
needs to target people that are both loyal and switchers. ‘The Better Drinks Co Limited’ is
also aiming to target people seek for cost benefits from the products. In terms of personality,
Company targets both careless and easy going people. This firm has lowered down the prices
and are providing offers that are attractive.
Psychographic: In psychographic terms, the firm focuses on all classes in the society i.e.
lower, middle and higher class people. The firm has mainly focused on the people that feels
exhausted all the time or the people that takes care of health on daily basis. Both mainstream
and strugglers are being targeted by the company. People that love to drink energy drinks are
their main focus. Image building and branding strategies can help the organisation in
attracting these target customers.
Positioning strategy
Positioning strategy has a crucial role in making the marketing successful (Schneider &
Benjamin, 2011). This firm has positioned themselves as a firm that is capable of providing
unique taste in their energy drinks. These must be available at lowest of prices when
compared to other competitor’s products. Their positioning strategy suggests that they want
to place themselves as a firm that provides a very different type of taste in the energy drinks
segment.

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Marketing mix
Among different strategic marketing tool, marketing mix is one of the most powerful tools.
The way in which marketing mix is implemented within the organisation plays a critical role
in making a successful marketing plan. The marketing mix for this new product is as follows:
Products: This Energy Drink is different from other products in the market as it does not
only available in the conventional taste but is also available in multiple fruits flavours. This
product is available in all standard sizes and at competitive prices. This product has a high
nutritional value and provides instant energy to the person taking it.
Prices: The products are available in the market in competitive prices that may differ from
market to market because of the taxation and competition in the market. It is constant in any
country still a reasonable rate has been attached with it so that maximum possible customers
can avail it. Since the company is following attractive pricing strategies hence they do not
provide additional discounts. Company also follows bulk pricing i.e. if a customer buys a
carton of cans of this energy drink then it 10% off on the total pricing will be given to the
consumer.
Place: Since the product has been launched for many countries hence they are using both
offline and online mediums for the sale of their products. They will have to make partnership
with both online and offline partners so as to enhance the sale of their products. More focus
will be given on the online sale of products such as availing product on their website that
assist people by doing home delivery of products. Company can also open very small shops
for selling of this product along with other products.
Promotions: Company can do most of the promotions through online mediums. This will
help in reaching to maximum possible customers at lowest of cost. Effective branding
strategies can help the company in dealing with the challenges related to image failure.
Conclusion
A conclusion can be drawn from the above report that ‘The Better Drinks Co Limited’ is a
growing business from New Zealand. High quality products at competitive prices are their
major strength while weakness includes its poor marketing campaign. It is having huge
opportunities in Asian market and the increasing competition is its major threat. The industry
faces the threat from new entrants, substitute products. Bargaining power of customers in on

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the higher side and that of suppliers remains to be low. Company aims to launch energy
Drink at reasonable rates and aims to launch it through online mediums.
REFERENCES
Better Drinks, 2018. Welcome to the Better Drinks Co. Retrieved from:
https://betterdrinks.co.nz/#
Bloomberg, 2018. Company Overview of The Better Drinks Co Limited. Retrieved from:
https://www.bloomberg.com/research/stocks/private/snapshot.asp?
privcapid=23775549
Heckman, M. A., Sherry, K., & De Mejia, E. G. (2010). Energy drinks: an assessment of their
market size, consumer demographics, ingredient profile, functionality, and regulations
in the United States. Comprehensive Reviews in food science and food safety, 9(3),
303-317.
Panel, N. Z. B. G. (2014). POLICY BRIEF: options to reduce sugar sweetened beverage
(SSB) consumption in New Zealand. Pac Health Dialog, 20(1), 98-102.
Schneider, M. B., & Benjamin, H. J. (2011). Sports drinks and energy drinks for children and
adolescents: are they appropriate?. Pediatrics, 127(6), 1182-1189.
Sivakumaran, S., Huffman, L., & Sivakumaran, S. (2018). The New Zealand Food
Composition Database: A useful tool for assessing New Zealanders’ nutrient
intake. Food chemistry, 238, 101-110.
Sun‐Waterhouse, D. (2011). The development of fruit‐based functional foods targeting the
health and wellness market: a review. International Journal of Food Science &
Technology, 46(5), 899-920.
Trought, M. C., & Bramley, R. G. (2011). Vineyard variability in Marlborough, New
Zealand: characterising spatial and temporal changes in fruit composition and juice
quality in the vineyard. Australian Journal of Grape and Wine Research, 17(1), 79-
89.

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