Digital Communication and Marketing Mix in Nexba Beverage

MARKETING 15 MARKETING Management and Digital Communication Author’s Note: Executive Summary This current report deals with the digital communication and marketing mix in the context of Nexba Beverage. Introduction 4 Situation analysis 4 PESTLE Analysis 4 Analysis of segmentation, targeting and positioning approach 6 Problem identification 6 Discussion of the market segment 7 Discussion of the target market and positioning approach 9 Marketing and financial goals 10 Marketing objectives of Nexba Beverage 10 Financial objectives of Nexba Beverage 10 Marketing mix analysis 11 Discussion of the marketing mix strategy

Running head: MARKETING
Marketing Management and Digital Communication
Name of the Student:
Name of the University:
Author’s Note:

2MARKETING
Executive Summary
This current report deals with the digital communication and marketing mix in the context of
Nexba Beverage. This is an Australian Beverage organization offers sugar free soft drinks.
However, such innovative approach in product development leads this organization to improve
their brand image. On the other hand, their product quality leads this organization to expand their
business in the market. However, huge competition and threat of alternative product are the
major challenges of this organization. Moreover, by using social media advertising they are able
to introduce their product in target customer domain. Such social media marketing enables this
organization to cover a large number of consumers from different geographical regions.

3MARKETING
Table of Contents
Introduction......................................................................................................................................4
Situation analysis.............................................................................................................................4
PESTLE Analysis........................................................................................................................4
Analysis of segmentation, targeting and positioning approach.......................................................6
Problem identification.................................................................................................................6
Discussion of the market segment...............................................................................................7
Discussion of the target market and positioning approach..........................................................9
Marketing and financial goals.......................................................................................................10
Marketing objectives of Nexba Beverage..................................................................................10
Financial objectives of Nexba Beverage...................................................................................10
Marketing mix analysis..................................................................................................................11
Discussion of the marketing mix strategy.................................................................................11
Implementation process of marketing mix strategy...................................................................12
Budget allocation for promotional mix..........................................................................................13
Conclusion.....................................................................................................................................14
References......................................................................................................................................15

4MARKETING
Introduction
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
Situation analysis includes micro and macro environmental analysis. In the context of
Nexba Beverage the environmental analysis is as follow:
PESTLE Analysis
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 &

5MARKETING
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.

6MARKETING
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.
Analysis of segmentation, targeting and positioning approach
Problem identification
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.

7MARKETING
Discussion of the market segment
Targeted Segment Needs of the consumer Advantages from Nexba
Beverage
Corporate users (Business
market)
Energy drink with low calorie Nexba Beverage provides low
calorie drink
Medical users (Business
market)
Health drink Nexba provides organic health
drink
Young aged people (Consumer
market)
Energy drink with zero calories
and zero sugar
Nexba provides sugar free juice
and health drink
Old aged people (Consumer
market)
Soft drink with zero sugar Nexba provides natural and
organic drink with zero added
sugar
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.

8MARKETING
High quality
Low quality
Low price High price
Coca-Cola Nexba Beverage
Boost Juice
Bundaberg Brewed Drink
Discussion of the target market 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.

9MARKETING
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.
Marketing and financial goals
Marketing objectives of Nexba Beverage
 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
Financial objectives of Nexba Beverage
 To reduce the operation cost by 3%
 To set proper budget for the marketing plan

10MARKETING
 To select cost effective promotional tool
Marketing mix analysis
Discussion of the marketing mix strategy
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.
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

11MARKETING
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 process of marketing mix strategy
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

12MARKETING
product portfolio via Facebook. Moreover, a budget is selected for the promotional mix before its
implementation.
Budget allocation for promotional mix
The promotional objectives of Nexba include creating brand awareness, cover large
number of customers and enhance the sales revenue generation.
Particulars 1st month 2nd month 3rd month
Newspaper $1440 - -
Magazine $1555 $1200
Social Media $30 $40 $60
Web advertising $20 - $35
E-mail $10 $20 $15
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.

13MARKETING
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.

14MARKETING
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.
E. 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.

15MARKETING
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/