Marketing Mix Strategy of Nexba Beverage

Running head: ASSESSMENT 2: MARKETING MIX
Assessment 2: Marketing Mix
Student’s name:
Name of the university:
Author’s note:

1ASSESSMENT 2: MARKETING MIX
Table of Contents
1. Introduction..................................................................................................................................3
Situation analysis.........................................................................................................................3
2. Discussion of potential market segment......................................................................................4
3. Discussion of target market with justification.............................................................................6
4. Clear positioning statement.........................................................................................................6
5. Objectives of marketing plan.......................................................................................................7
6. Marketing mix strategy................................................................................................................8
7. Budget allocation for promotional mix......................................................................................11
8. Conclusion.................................................................................................................................11
Reference List................................................................................................................................13

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Executive Summary
The entire study deals with the marketing plan and the study shed light on Nexba Beverage as
the concerned organisation. The company is preparing to improve brand awareness and thereby,
the study provides a significant understanding of the marketing strategy so that, it becomes
possible for the aforementioned organisational entity to reach a wider section of market and
customer segment. The company offers a competitively unique product which is a combination
of advanced features and functionality at the value-added price.
For this purpose, the study has developed significant target market based on the market
segmentation and positioning strategy. The primary objective of the company is to improve sales
and brand awareness and thereby, the study focuses on the development of significant marketing
and financial objective of the company to develop an effective marketing strategy for the
company. Hence, the researcher develops a significant marketing strategy for the aforementioned
organisation through the effective use of marketing mix tool. Nexba will target the middle-
income group with varied aged customers.
As the marketing objective of the company is to develop brand awareness among the
customers thereby, the usage of digital platforms would be useful for the company as the
effective promotional platform for Nexba. Hence, for this purpose, the study has developed
significant budget including the cost for digital communication platform so that, the company
will be able to establish in the crowded and fast-changing marketplace effectively and efficiently.

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1. Introduction
Every organisational entity aims to heighten business growth in terms of financial
profitability and thereby, organisations always aim to gain new market segment for improving
customer base. In this regard, the aim of this assignment is to focus on the development of
marketing plan for improving business profitability and for this purpose, the study focuses on
Nexba Beverage as the concerned organisation. In this regard, the chosen product is the Nexba’s
range of flavoured ice tea products that contain only 4.9g sugar in comparison to any other soft
drink products of different companies. Nexba mainly sells beverages and this organisation was
founded in the year 2010. In 2016, Nexba made a partnership with Coles and took a step to
reinvent soft drinks. 2017, Nexba won the consumer-voted award of the product-innovation
(Nexba.com, 2018).
Situation analysis
Situation analysis an essential element and initial part of developing a marketing plan for
an organisation. For the concerned company Nexba Beverage, the main competitors include
Coca-Cola and Pepsi. At the present time, these companies are trying to reduce sugar from their
soft drink products and thereby providing tough competition to Nexba at the present time.
However, according to Kraak et al., (2017), Nexba beverage has been stealing consumers from
the market leaders Nestea and Lipton with the help of a range of flavoured iced tea products.
Hence, in terms of economies of scale, it can be stated that there is a drastic increment in the
capital rise to around 2.4 million for the year 2015-2016 and this will reach to around 8 million
by the year 2016-2017. This is beneficial for the concerned organisation as more and more

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people are tending towards sugar-free drinks and this trend is spreading rapidly amid young
generation and health-conscious customers (Hoek, 2017).
2. Discussion of the potential market segment
Market segmentation can be perceived as the process of division of available market
potential based on the characteristic possessed (Mone & London 2018). Each of the segments in
this consideration consists customers with one or more common characteristics. The types of
market segmentation include
 Geographic segmentation: This kind of segmentation allows the marketers to focus on
the region in terms of the region in which the company likes to sell the products or
services. For this purpose, it is essential for the marketers to draft strategies that would be
best effective for the people from different regions (Sharma & Nasreen, 2018).
 Demographic segmentation: Demographic segmentation includes gender, age, race and
income status of the customers to develop and design product to enhance customer
loyalty. This allows the organisational entity to target proper group of people who will be
interested in their goods or services (Kearney, 2018).
 Psychographic segmentation: This section includes the people based on personality,
lifestyle and attitude of people. Marketers consider these factors as all these elements
create a great impact on the buying decision of individuals.
 Behavioural segmentation: This segmentation is based on the factors such as
preference, behaviour, choice, usage and decision-making ability of the customers
(Kontoghiorghes, 2016). In this context, the knowledge of product allows the customers
to develop buying decision about the goods or services offered by the company.

5ASSESSMENT 2: MARKETING MIX
Nexba beverage has considered various segments for gaining business growth in terms of
production and financial profitability. The segments that could be served by the concerned
company includes
Geographic segmentation: This may not be considered appropriate for the concerned company
Nexba Beverage as the company focuses Australia as the potential market.
Demographic segmentation: A few demographic factors that are considered for the company
includes
 Age: Nexba targets customers between the age 10 and 60.
 Life cycle stage: This segment includes college goers, children and moreover athletes and
to serve potentially
 Occupation: Sportsperson, students, employees and others professionals are considered
by the company.
Behavioural segmentation: The elements of this segmentation includes
 People who love to have healthy physic
 People who love to stay afresh
 People who love to have a beverage to improve body strength and mind freshness
Psychographic segmentation:
Under this particular segmentation, it will be beneficial for the aforementioned
organisation Nexba Beverage to focus on both the middle class and upper-class people. This is
because, the company focuses on value for money and maintains quality in all the products to
gain customer loyalty and improve the health of the community (Phillips, 2016).

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3. Discussion of the target market with justification
Targeting is the process that can be considered in the business process to understand the
attractiveness and evaluate each segment and concerns effectively (McDonald & Wilson, 2016).
Accordingly, the target market should be the element that business enterprise can consider to
meet the requirements and at the same time, the potential consumers can be retained effectively
and efficiently over a period of time.
Primary Target market:
For Nexba, customer segment can be identified on the basis of demographic segregation;
college goers, children and moreover athletes and to serve potentially; especially the people who
love to stay fit and maintain health at regular intervals. Therefore, Nexba can target the middle-
income group with varied aged-group will be a target for the organisation. People who love to
take fit and healthy would always prefer to taste finest possible drinks and beverage and they can
get the same at Nexba. In this context, the athletes will be able to stay fit by taking the sugar-free
iced tea and will be able to stay afresh potentially. Nexba can get the data about demographic
segment through accessible data and use demographic segment, the organisation can improve
customer loyalty and retention.
Secondary target market
Nexba can divide the market into specific groups of customers according to the attitude
towards the organisation and response to the products. The organisation looks at the pattern of
buying and using the patterns of spending money. The behavioural segment group will be
targeted and the people who like to drink soft-drink will be secondary target. Behavioural

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segmentation has the advantage of using the variables that are closely related to the product itself
(Fan, Lau & Zhao, 2015).
4. Clear positioning statement
Nexba Beverage’s marketing strategy is based on the positioning of the product
differentiation. Hence, according to Goyal & Bansal (2017), positioning is based on the
meaningful differentiation which is supported by proper strategy and implementation. It is worth
noting that, with the help of this positioning; it becomes possible for the organisational entity to
build competitive advantage. Hence, using product differentiation, the concerned company is
positioning iced tea as the most versatile, tasty, healthy and value-added product for the personal
and professional use (Cheah & Phau, 2015). The marketing of the company focuses on the sugar-
free and flavoured iced teas and this differentiates Nexba beverage from its all potential
competitors (such as DR Pepper Snapple, PepsiCo and Coca-Cola).
Figure 1: Positioning Map of Nexba

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(Source: Self-developed)
5. Objectives of a marketing plan
Marketing objectives
This section deals with the marketing objectives that the concerned organisation may
develop with the help of their products and services. Hence, the company leverages a range of
product that is well accepted by the community as the product is healthy as it contains a less
percentage of sugar. Thereby, the marketing objectives of the company include
 To improve sales by 2.5% by 2021
 To enhance brand awareness among the target markets
 To enhance the customer relationship
With the help of this marketing plan, the aim of the company is to enhance the sales in
the potential market by 25% as the company is facing a tough competition from Coca-Cola and
Pepsi. Thereby, the company aims to gain more customers from the market leaders Nestea and
Lipton and thereby, it is essential for the company to improve sales to stay competitive. Further,
another objective of the company is to enhance brand awareness through effective usage of
digital platforms.
Financial objectives
The financial objectives of the concerned organisation include
 Growth in revenue and have a more diversified revenue base
 To gain attractive economic value added (EVA) performance

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 To heighten attractive and sustainable market value added (MVA) performance
At the present time, Nexba Beverage generates around $57.5k in revenue. However,
Coca-Cola generates $ 35.5 billion more revenue than Nexba and Dr Pepper Snapple generates
around $6.7 billion more revenue than the concerned organisation. Therefore, to stay
competitive, in terms of financial objectives, it can be stated that, the aforementioned company
aims to achieve sales revenue of around $70 billion and thereby have a more diversified revenue
base through the diversified product range.
6. Marketing mix strategy.
Product strategy
The concerned organisation Nexba has a wide range of product portfolio in the beverage
industry. The iced tea including low-level calorie and sugar will be sold with a guaranty of
strong and healthy physique. The natural sugar-free cola, sugar-free lemon, flavoured sparkling
water is included in the product range. The company introduces a more compact, value-added
and high-ended model. This product range is an integral part of the product strategy and it is
reinforced by the prominence in the introductory marketing campaign. Further, it is essential for
the company to focus on the significant product strategy. According to Maryani (2015), a range
of product strategy includes pricing product, product positioning and product lifecycle
management. In this scenario, the best product strategy includes managing the product through
a number of stages of product life cycle. Hence, it is worth noting that, the company needs to
differentiate its product along with the new features to increase sales and hence, the key to the
concerned product lifecycle management is to get as much mileage out of the effective product
range as possible (Heroux & Clark, 2017).

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Price strategy
Due to the availability of wide range products, it is essential for the company to consider
pricing according to behavioural and market segment. It is worth mentioning that, the companies
need to focus on the effective pricing strategy in order to sell all the products or services in the
competitive marketplace so that, it becomes possible for the company to make a profit. Hence, it
is essential for the marketers to consider a range of factors such as the cost of the production and
distribution, prices offered by potential competitors and determining the demographics of the
potential consumers in the existing and target market. According to Zameer, Nisar & Amir
(2014), the different pricing strategy includes premium pricing, penetration pricing, price
skimming, economy pricing, competitors pricing and the other one is psychological pricing. For
the concerned organisation, it will be beneficial for the company to consider competitors pricing.
As opined by Chen et al., (2015), the beverage industry belongs to the oligopoly market and
thereby, the consideration of the competitors pricing is significant to improve profitability.
Place strategy
It is one of the essential elements of the marketing mix and deals with the significant
selling platform for the products or services. In this particular condition, it is essential for the
concerned organisation to focus on the distribution system to reach to the significant customer
base of the existing market. In this regard, the company may focus on the FMCG (Fast Moving
Consumer Goods) distribution pattern. With the help of this effective distribution network, it
can be stated that the aforementioned company becomes able to erode the small and other middle
players in the existing and target market segmentation.
Promotion strategy

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For delivering the products to the customers and advertise the features of the products to
improve brand awareness, it is essential for the organisational entities to consider significant
promotional platform and strategy (Schlegelmilch, 2016). For the concerned organisation, it is
essential for the company to adopt various advertising strategy to create increased demand in the
existing market by associating with behaviour and lifestyle and mainly targeting different value
based advertising. Hence, it is worth mentioning that, the company needs to incorporate the
social media platforms such as Facebook, Twitter, Yahoo and YouTube to create brand
awareness. Hence, the pre-launching program in the social media platforms will be effective and
valuable decision for Nexba Beverage.
Facebook
(Currently has
23,900 likes)
Twitter
(Currently 550
followers)
Instagram
(Current followers
6,886)
Social media focus Sharing news, stories Sharing content
(Currently has 1275
tweets)
Sharing images and
videos
(Currently numbers of
posts 1,025 posts)
Company brand
presence
Facebook business
page
Twitter page Instagram business
page
Viral branding Share image, posts
and content
Retweets and follows Likes and comments
sharing
Web traffic Paste direct links and
feedback
Paste direct links and
feedback
Paste direct links and
feedback
Table 1: Social media advertisement strategy

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(Source: Self-developed)
7. Budget allocation for a promotional mix
Total expenses:
Media channel Per day cost Total cost (for 3 months)
Google Ad Words $2.75 $247.5
Twitter advertisement $ 0.75 $67.5
Facebook Ads $ 0.70 $63.0
Print advertisement $400
Out-of-home advertisement $1200 (Approx)
Partner Marketing $300
Events $1000
Content and documentation $100
Marketing strategy and
operation
$800
Total = $4178.00
8. Conclusion
It can be stated that Nexba Beverage has significant market opportunities to improve the
business growth which in turn will be beneficial for the company to improve the financial
profitability. For developing the significant marketing plan for the aforementioned organisation,
the study has developed a significant understanding of the present marketing opportunity by

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focusing on the situation analysis of the company. Further, the study has provided significant
understanding regarding the market segmentation and target market for Nexba. With the help of
this understanding, it becomes possible for the company to develop a significant marketing plan
for gaining brand awareness. In this regard, it is worth noting that the study has considered
behavioural and demographic market segmentation for Nexba Beverage. For developing a
significant marketing plan, the study has provided an in-depth understanding of 4P’s marketing
mix as the tool for marketing strategy and shed light on product, place, price and promotion of
the concerned product of the company. The researcher significantly has provided a budget that
includes special emphasis on the digital communication platform to gain in-depth knowledge
regarding marketing plan for Nexba so that, the company becomes able to give tough
competition to all the major competitors in the market significantly.

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Reference List
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