Situation Analysis of Nexba: Marketing Strategy and Promotion Mix

This study focuses on the situation analysis of Nexba, an Australian company that produces sugar-free beverages. It discusses the marketing strategy, promotion mix, potential market segments, target market position, marketing objectives, financial objectives, and implementation and control measures.

Running head: SITUATION ANALYSIS
SITUATION ANALYSIS
Name of the Student
Name of the University
Author Note

1SITUATION ANALYSIS
Executive summary
The discussion will detail about the importance of sugar free beverage producing brand
Nexas, it was the first brand that had introduced the idea of producing sugar free beverages
that will benefit the consumers like diabetes patient, fitness conscious consumers, health
conscious and obesity patients. The study will give a relevant study in the situation analysis
of the company and the possible risk related to it. It has also discussed about the steps the
company might take to meet the challenges. The study includes the marketing strategy and
and promotion mix of the company also.

2SITUATION ANALYSIS
Table of Contents
Introduction................................................................................................................................2
Situation analysis:..................................................................................................................2
Problem statement:.................................................................................................................3
Potential market segment:......................................................................................................3
Target market position:..........................................................................................................4
Marketing objectives and goals:.............................................................................................5
Financial objectives:...............................................................................................................6
Marketing mix and marketing strategy:.....................................................................................7
Implementation and control:..................................................................................................8
Promotion mix:.......................................................................................................................9
Conclusion:..............................................................................................................................10
References:...............................................................................................................................11

3SITUATION ANALYSIS
Introduction
Nexba is an Australian company that is specialized in producing beverages that ready
to drink. The company was established in the year 2010 by Troy Douglas and Bilbe. The
company produces anti-sugar soft drinks that has helped to create a significant position for
the company in the market. The company had started their business with the innovative idea
of launching naturally sugar free soft drinks for the first time in the country. Nexas have
prospered in their innovative and creative thought and presently they are available in stores
nationwide in Coles with a range of cola, lemon and orange flavours. They have been a
tough competition to the leading beverage brands like Coca-Cola and Pepsi in the market.
The brand has stolen the customers from the leading refreshment drinks brands like Nestea
and Lipton with its favoured iced teas. The brand, Nexas is creating a huge change in the
beverage market and is expanding their business scale to a varied range (de Ruyter et al.,
2013). The study will focus about the situation analysis of the company and will discuss
about the objective of the company. It will also detail the marketing mix and strategy of the
company and along with the implementation and control measures.
Situation analysis:
The company is using Erythritol a natural sweetener product to create the taste of
sugar in the beverages produced by them. They are not using the natural sugar but the taste
remains identical. This is the first company who came up with this approach and thus
attracted huge scale of customers from all across the nation (Hu, 2013). The most important
factor for this company is that there strategy to use the artificial sweetener in their product.
According to studies it is seen that one of the major problem of health is consumption of the
sugary soft drinks that contains a huge scale of calories. This is a direct threat to the patients
suffering from and might suffer from diabetes, cardiovascular disease, obesity. However,

4SITUATION ANALYSIS
Nexas has introduced the product of sugar free drinks with the taste of sugar in it and has
taken over the market in a short span of time.
Problem statement:
The major problem that the company will face or the company is facing
presently is a huge competition with the already established brands like Coca cola who
have launched zero-calorie drinks that is also following the same strategy just like
Nexas. To define in a detail manner it can be said that a company like Nexas has come up
with an innovative and creative thinking of producing sugar free products for the beverage
industry. The company has received a huge scope for expansion and has also already reached
the market in an effective manner. It has expanded the business all over the nation in a short
span of time. The company has become a threat to the leading beverage brands like Pepsi and
Coca –Cola. However, these brands are also giving a tough competition to Nexas as they are
also launching products that has very less or zero calorie in it. The company has to improve
their marketing strategy and innovative skills to overlap the leading brands and maintain their
position in the market. If the company is not taking any steps recover this threat then they
might lose their position in the market as the brands like Coca –Cola and Nestea has a leading
fame in the beverage industry since a long time and it is difficult to compete with them
without proper strategy and skills (DeBoer, Scharf & Demmer, 2013).
Potential market segment:
Demographic: The consumer for this product will be of middle aged and older age group.
This section of consumers are having high chances to suffer from typical diseases where the
consumption has to be limited in various ways. The consumer section who are concerned
about their health, figure will also get attracted to this product.
Psychographic: The consumers who are conscious about their health and desire to consume
sugar free products will get attracted to this product (Malik & Hu, 2015). The consumers who

5SITUATION ANALYSIS
are also threatened by diseases like diabetes can also consume this product. This product will
attract consumers who do prefer to drink soft drinks but could not drink it because of sugar
contains.
Behavioural: The consumer who are conscious about their health and also desire to consume
soft drinks will select this product.
Geographic: Countries that are highly conscious about the health and fitness will be the target
market of this company. The countries or areas that are sports oriented and health oriented
and also desires to stay fit and healthy will prefer this product. The people staying in regions
near the equator requires more soft drinks or energy drinks as the weather is very hot and dry
in such areas. This product will be ideal for such consumers.
Target market position:
The target market for this product are the countries that requires more soft drinks as
the temperature is extremely high in such regions. Countries near the equator requires more
energy rinks or soft drinks and thus if the product is providing the consumer with the
privilege of sugar free drinks then they will accept the product readily. The company will be
readily accepted in the countries where the community has a high range members suffering
from diseases like, cardio vascular disease, diabetes, cholesterol. The patients were not able
to consume the beverage due to the sugar contain in them. However, once this product was
introduced to the market the company would get a higher scope of expansion from every
corner of the world. Thus the company should target the regions near the equator or the
nations that has a high temperature rise in summer (Galbraith‐Emami & Lobstein, 2013). The
product will be ideal for countries were the maximum consumers are health conscious and
concerned about their fitness. The company will incur a huge profit from such regions.
Target market segments:

6SITUATION ANALYSIS
 Young generation: The group of young generation who have the fascination for
staying fit and healthy and are also interested to participate in sports must keep
themselves healthy and consume product that are containing less amount of calories
and sugar.
 Middle aged group: This generation is interested in keeping themselves healthy so
that they can avoid diseases like diabetes, cardio related diseases. They are health
conscious and concerned to stay healthy and fit. Thus they prefer this sugar free
beverage.
 Old generation: this generation is already suffering from the typical diseases that
strictly disallows the intake of calorie contained food and beverages. Thus they would
not consumer beverages that contains sugar and would readily accept the sugar free
drink of Nexas.
Marketing objectives and goals:
The company had initiated the process of producing soft drinks using the natural
ingredients with low fat products. They knew they had a good concept and with that they
decided to implement the plan in the business strategy. Their idea soon hiked in the market
and reached a certain level that was beyond the expectation of everyone. The company
targets to make the brand to stand by the competing and leading beverage brands in the
market. Their distinctive branding at the point of sale was effective and the media campaigns
were also successful. The campaign was successful. They used cloud technology to track the
consumers and sales of the company. The marketing goal of the company is to reach the
customers who are concerned about the health drinks that is harmless to them. The need for
health drink has increased in the society however, the sugar contains in the drinks are making
them harmful to consumers who are suffering from diseases like diabetes, heart diseases.

7SITUATION ANALYSIS
The company is introducing campaigns that are spreading awareness about sugar
contained drinks and their side effects. They are informing the consumers the possible risks
about the intake of sugar contained drinks. They are informing the consumer about the risk of
consuming such beverages.
The company can focus on developing nations and inform them about the need of
staying healthy and fit in their life. They can conduct the awareness program in such
countries where the consumers are not aware of the importance of staying healthy. They can
be informed about the importance of staying healthy in their life.
They can target the international market. The strategy of the company can be to
explore the need of being healthy to the consumers in international market (Varadarajan,
2015). It is already seen that the zero coke or zero calorie diet drinks are getting a high
approach from the consumers and the company can use this demand for improving their
position in the market.
They can use social media to reach the consumer in the international market. The
consumers will be able to understand the importance of being healthy and consuming healthy
drinks and thus the demand for the product will also increases in the market. As the use of
social media is very common in the present day thus the advertisement of the products using
social media will be beneficial to the company.
Goals of the company:
 To reach the international market
 To lead the beverage market
 To compete with FMCG brands like Pepsi and Coca Cola
 To create an awareness about the health drink that scan be served to consumer having
diseases like diabetes, cardio diseases.

8SITUATION ANALYSIS
Financial objectives:
The financial objective of the company is to improve their income so that they can
further extend their production scale in terms of product and regions they are trading in. the
company is highly concerned about the products used by them to serve the customers. They
aspire to improve their sale so that they can further expand their business in the international
market.
The main objective of the company is to bring products that can be consumed by
patients suffering from obesity, diabetes, cardio vascular diseases. Their approach for sugar
free products was only to create an awareness among the users and eliminate the intake of
deinks that contains calorie and sugar.
The company aims to reach the inter -national market and expand their business to the
countries that are not conscious about their health or are unaware of the importance of being
healthy.
Marketing mix and marketing strategy:
Product: The product is completely sugar free and is highly beneficial to consumers suffering
from acute diseases like diabetes, obesity and cardiac problems. The product highly
beneficial to consumers who are health concerned as they have zero contain of calorie and
keeps the person fit and healthy. The company can introduce products like sugar free tea that
will be targeted for the old generation who might not be interest in drinks (Kim &
Mauborgne, 2014). At the same time they can introduce energy drinks for the youth
generation who are interested in fitness and sports activity.
Price: The price of the product affordable and thus it has attracted by the customer from
various ranges. However, if the company tends to compete with the leading brands like Pepsi
and Coca Cola then they must decreases the price further to attract the customers who would
over- lap the use of the leading brands and purchase this brand.

9SITUATION ANALYSIS
Place: The countries where the need for fitness is must would be a target place for this
industry. The product will be highly in demand in countries where the customers are
interested in keeping themselves slim and healthy. The product will also be readily accepted
in regions where the people are suffering from diseases like diabetes, obesity.
Promotion: The brand can be promoted with the help of social media. The use of social
media has increased in the market and the consumers are using the media to select brands and
product for their consumption (Slack, 2015). The company can use the social media to reach
the consumers in the international market and inform them about the product and its
importance in the market.
Implementation and control:
The company can implement the plan of expanding the business and competing with
the rivals by using few strategies that will make the brand different from the other brands.
They can take the following steps:
 Expand the business in the international market
 Inform the consumer about the importance of sugar free drinks.
 Inform the risk related to sugar contained products
 Encourage the introduction of sugar free drinks in developing countries
 Using the social media to attract and inform the consumers
 Increasing the marketing strategies
 Improving the advertisement procedures
 Using strategies that would attract the consumers
 Using strategies that would help the company to compete with the leading brands like
Coca Cola , Nestea and many more.
Thus if the company is using such strategies to compete against the leading brands
and create a demand for their product then they will be able to lead the market in

10SITUATION ANALYSIS
beverage field. However, there would be few hurdles and blockage in the path of the
company to reach its target. The company has to make sure they are using the best skills
and strategies to reach their target and are not lacking back in any field.
If the market demand is increasing or the company then it can conclude that
they are on the right track. The company will understand whether they are on the right
track or not, if they are proceeding in the correct way then they will see an upward
movement of the sale and an increasing demand for the product.
Promotion mix:
Advertisement: the company has to advertise their product in a large scale as they have
competitors like Coca Cola, Pepsi who are highly reputed brand and thus to compete with
such brands the company has too invest a lot of time and money on their advertisement.
Public relation: The Nexas Company is comparatively less familiar with their customers in
comparison to brands like Pepsi. The customers of Pepsi and Coca cola are very much
familiar with their brands and thus if the company desires to compete with these brands they
have to improve their relationship with their customers.
Sales promotion: Nexas Company has to give discounts and offers to attract the customers for
building a relation with the customers. They have to create a situation where the consumers
will opt for this brand instead of selecting the reputed brands like Nestea, Pepsi.
Direct marketing: the company has to use hoarding, leaflet and advertisement in the road and
markets along with demonstration about the product. The beverages that is sold by this
company are highly beneficial to the society this has to be explained to the consumers by a
direct approach (Mongkol, 2014).
Personal selling: The personal selling is also very important to convince the customer about
the importance of the product. The direct selling helps the consumers to understand why they

11SITUATION ANALYSIS
should select the product. This gives a better scope for the company to reach the customer
and convince them about the importance of the product (Kotler, 2015).
Conclusion:
Thus it can be concluded that the product that is typically introduced by Nexas has a
huge scope in the market. They can meet their challenges by focusing on their major
challenges and steps related to it. The company can improve their marketing strategy to
compete with the leading beverage brands in the market and sustain their position in the
market. They can introduce new strategies to reach the customers and inform them about the
importance of sugar free drinks. It is expected that if they use tactical skills and strategies to
advertise and market about their product in the market then they will be one of the leading
brand in beverage industry and sustain the position.

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References:
de Ruyter, J. C., Katan, M. B., Kuijper, L. D., Liem, D. G., & Olthof, M. R. (2013). The
effect of sugar-free versus sugar-sweetened beverages on satiety, liking and wanting:
an 18 month randomized double-blind trial in children. PLoS One, 8(10), e78039.
DeBoer, M. D., Scharf, R. J., & Demmer, R. T. (2013). Sugar-sweetened beverages and
weight gain in 2-to 5-year-old children. Pediatrics, 132(3), 413-420.
Galbraith‐Emami, S., & Lobstein, T. (2013). The impact of initiatives to limit the advertising
of food and beverage products to children: a systematic review. Obesity
Reviews, 14(12), 960-974.
Hu, F. B. (2013). Resolved: there is sufficient scientific evidence that decreasing sugar‐
sweetened beverage consumption will reduce the prevalence of obesity and obesity‐
related diseases. Obesity reviews, 14(8), 606-619.
Kim, W. C., & Mauborgne, R. A. (2014). Blue ocean strategy, expanded edition: How to
create uncontested market space and make the competition irrelevant. Harvard
business review Press.
Kotler, P. (2015). Framework for marketing management. Pearson Education India.
Malik, V. S., & Hu, F. B. (2015). Fructose and cardiometabolic health: what the evidence
from sugar-sweetened beverages tells us. Journal of the American College of
Cardiology, 66(14), 1615-1624.
Mongkol, K. (2014). Integrated marketing communication to increase brand equity: The case
of a Thai beverage company. International Journal of Trade, Economics and
Finance, 5(5), 445.
Slack, N. (2015). Operations strategy. John Wiley & Sons, Ltd.

13SITUATION ANALYSIS
Varadarajan, R. (2015). Strategic marketing, marketing strategy and market strategy. AMS
review, 5(3-4), 78-90.