Improving Distribution Channel of Nudie Juice in Australian Beverage Industry

This research proposal aims to identify the weakest distribution channel of Nudie Juice and determine the best strategy to regain market recognition. The research design includes both primary and secondary data collection and analysis. The proposed time frame is from June 1, 2018, to July 7, 2018, with a budget of USD 6800.

BUS703 Managing Research
Task 2. Research Proposal
Assignment template
Student name & ID:
Project Title:
1. Introduction and Background
Nudie Juice is a Australia based Beverage manufacturing company. The company has
been founded in 2003 guaranteeing the 100% purity. Currently the company consumes
5,000,000 pieces of fruits to manufacture their various beverage products. Nudie Juice has
29% market share of the Australian Beverage industry. 75% of its fruit supply is managed
within the nation while only 25% of fruits are collected from abroad (Nudie.com.au 2017).
In the Australian market of Fruit Juice, the major competitors of Nudie Juice are Bickford’s,
Just Juice, Harvey Fresh and Daily Juice. Nudie is famous for its product diversity. The
company manufactures both mono flavoured and combinational flavoured juices. This
product diversity has made 60million USD of revenue for Nudie Juice. One of the closest
competitors of Nudie Juice is Bickford’s who has 20% market share (Nudie.com.au 2017).
The mission of Nudie Juice is to provide healthy fruit Juice of top quality while making
huge market share and profit.
The company is currently experiencing strong rivalry within the beverage market of
Australia. The main causes of this competitive environment is intervention of multinational
beverage manufacturing and supply chain companies, new entries with high potentialities,
Efficient distribution network and diversities of existing competitors. The major weakness
of Nudie Juice is its inefficient distribution channel. As per the recent market research and
annual forecast of this company, Nudie Juice has lack of reaching power to the terminal
consumers. The market availability of the products is comparatively lower than other
companies. In spite of effective promotional activities the potential buyers is not getting
adequate amount of products through the conventional distribution channels, corner shops
and super markets (Heath, 2014). The varieties of products cannot reach to the target
consumer in sufficient quantity while having enormous amount of manufacturing rate. This
weakness is hindering the brand value, consumer base power, competency and other
factors that could improve the profitability of the company.
2. Management problem

Nudie Juice has recently conducted a market research through which it has been identified
that their current weakness is insufficient distribution channel that is not capable to
distribute the divertive products to the target consumers. The management has to identify
what kind of product the customers are getting easily and which products are not available
adequately in the market. This will help to identify the weakest distribution channel that has
to be improved. Apart from that information about most available products in the market
that is reducing the number of potential buyers has to be collected. It will help to determine
the best strategy to regain the market recognition.
3. Literature review
Beverage industry of Australia:
The soft drinks manufacturing industry has been showing the moderate growth since the
last five years. At the same time, the intervention of internationalise beverage chain
regulates the larger section of the Australian market of non alcoholic beverage products
(Huang et al. 2015). The price of competition is also very high that makes the business
opportunity narrow for the novice level company. From 2017 the industry revenue has
increase 1.7% that acts as the advantage and disadvantage for any moderate level
companies (Sacks et al. 2018). The Australian government is not making any significant
changes in the traditional rules and regulation such as trading low, contractual ethics, food
and safety and others. This stable legal environment is favouring the potential growth of
this beverage industry to some extent. On the other hand the soda based beverage market
is unable to influence the traditional market demand of fruit juice (Alkaya and Demirer
2015). This specific feature is making the soda based beverage companies more attracted
towards fruit juice production. On the other hand, from the past few years the national level
fruit supply chain has failed to supply adequate raw material to this industry that increase
the competitive environment (Huang et al. 2015). In other part of the globe some major
supply management has made a near monopoly or competitive duopoly market, where in
Australia the beverage industry is still under distributive ownership.
Importance of distribution channel:
Like any other operation associated with the production and development of the product
distribution chain management is also a chief regulatory factor that influences the
operational efficiency, market share, customer strength and even the potential revenue of
any company (Spowart and Wickramasekera 2012). In organisational operation
distribution management is considered as a part of outbound logistics that is responsible to
make the produced product available to the target market segment. The potential buyers
will not get their desired product in adequate amount without the intervention of efficient

distribution network. Like any other industry, efficient distribution management can cause
beneficial business growth. However, some of the organisation maintains their integrated
supply chain with enough control on operation, while other organisations depend more on
the external independent distribution chains (Moretto et al. 2014). To regulate the
distribution chain the depended company needs to maintain additional partnership and
contractual relationship with other logistic companies. This policy reduces the operational
cost for market distribution while increasing the dependency on external environment. The
bargaining power of the distribution management also influences the competitive
environment of any industry.
Consumer behaviour and market trends:
The socio-psychological environment of consumer segment influence the huge amount of
business opportunity of any industry. In food and beverage industry of Australia the
potential consumers currently prefer more heath drinks over the carbonated drinks. The
organic fruit processing will going to be the additional crucial components of this non
alcoholic and non carbonated beverage market (Jensen et al. 2012). The bigger brands
are currently trying to incorporate this profitable strategy in the Australian beverage
industry where the moderate or lower level businesses will not have enough opportunity to
compete against those giants. Apart from that after the innovation of Web 2.0 the influence
of social network and online promotional activities has become huge in any corporate
environment. Consumers are free to get enough review about a particular brand to build
their own perspective about a company.
More that 73% Australian promotional activities are dependent on the online based
marketing, especially with social media promotions (Hutt and Speh 2012). More the 85%
of food and beverage companies of Australia have their own top rated social media pages
and forum (Ronit and Jensen 2014). The strategic implementation of this marketing tool
requires the accurate measurement of consumer behaviour. Through analysing the
consumer behaviour and market trends the operating company can build more effective
and attractive strategy to increase their brand recognition as well as customer base. The
social media based online consumer discussion forum also makes the marker research
more cost and time efficient. At the same time, consumer behaviour is also affected by the
promotional activities and industrial trends (Wilson and Gilligan 2012). The management
group of any organisation also has to monitor the consumer behaviour about the particular
industry as well as about the company itself.

4. Research Design
Research design and justification:
The research design refers the foundation of the research process that makes the
research approach as well as research methods under the conceptual implementation of
the selected research philosophy. In this research, both real time realistic data collection is
needed with secondary data collection with the help of literature reviews. Henceforth, in
order to analyse market condition and consumer trends this research has followed
positivism philosophy (Malhotra and Peterson 2014). Three kinds of research designs are
usually used to develop the conduction process of the research and the required flow of
activities. These are Explanatory Design, Exploratory Design and Descriptive Design. In
this particular research no previously delivered Hypothesis or concept is going to be
justified or proven. Therefore this research has to analyse the consumer trends with the
help of Descriptive research design. This selected descriptive research design enables the
researcher to explore the context with the help of data collection and analysis method that
generates the findings and conclusion of this research. The research approach refers the
research conduction interactive patter and the handling process of the collected data at the
time of conducting the research under selected methodology (Zikmund et al. 2017). In this
context, in order to identify the most effective distribution strategy to reach the target
consumers efficiently this research will conduct with the help of inductive research
approach.
Source of the research:
The data source of any research is divided into primary data collection process and
secondary data collection process. For this research, both Primary data collection and
Secondary data collection process have been used. several critical research journals has
been analysed to conduct the Secondary data collection that has helped to measure the
performance of Distribution channel. The research also guaranteed that the chosen
research papers and journals are completely authentic and relevant to the beverage
industry of Australia. The purpose of this secondary data collection is to analyse the
current dilemma in distribution process, which is already explained and examined in
various authentic research. The primary data collection process has been conducted with
the help real time environment analysis measurement tools.
Conceptualisation and measurement:
The concept of this research method is finding the success level of the current distribution
module of Nudie Juice from the perspective of the end term consumer. From this

perception, this research will analyse the key hole of existing distribution channel that
should be recovered. However the measurement parameters will be the number of
available favours within the market that is successfully reaching the terminal consumers.
Along with that, the demand of the consumers on any specific product will be also
measured through this research. Both of this measurement can successfully reflect the
current deficiency in distribution chain. Apart from that, from this identification the
management can initiate essential amendments within their outbound logistics procedures.
The questions that will help to measure the condition are:
How frequently the consumers purchase any product of Nudie Juice?
What is the most favourite fruit juice flavour of the consumer?
Which flavour of the Nudie Juice is available most?
Which flavour of the Nudie Juice is less available in the market?
Whit is the other brands that the consumer would prefer?
How much satisfied the consumer is about the product availability in the market?
Data collection and generation method:
To collect the data this research will follow the online survey method. Through this survey
of random sampling 15 consumers response will be selected to be analysed. The survey
will be conducted on social media based page of the Nudie Juice. The most popular social
media page and consumer discussion forum will be selected to execute the survey based
data collection method. Social media is the most available portal to get information about
the market as well as the consumer trends. It also helps to collect feedback about
consumer satisfaction and the business operation. Through, these feedbacks the company
can build their next strategic management to improve their market reputation and resultant
profitability.
Data analysis:
Two types of data analysis method will be used to conduct this research namely qualitative
and quantitative data analysis. In qualitative data analysis the research method will
analyse the collected data through linear and reasoning base analysis technique. Mostly
open ended answers are analysed with the qualitative analysis. On the other hand, the

quantitative data analysis allows the research to analyse the collected data numerically
through various mathematical techniques. In this research the collected data from the
survey report will be analysed with quantitative or numerical analysis. The mathematical
average calculation method will be used to observe the research outcomes. Apart from
that the graphical representation with bar chart will help to visualise the analysed data and
conceptual frame of the research outcomes. This data analysis method will help to find out
the essential cause of the market declination. Along with that the consumer satisfaction
level and potential way to improve the business quality can also be analysed through this
data analysis method.
5. Ethical issues and limitations of the proposed research.
Ethical consideration is extremely essential to ensure the credibility and authenticity of the
conducted research. The purpose of the ethical consideration of this study is to keep many
moral and ethical factors within the execution of the research methods in mind. This
research will completely abide by the data protection act and regulation (Nunan and Di
Domenico 2013). The purpose of this research and the method of utilisation will be
informed to the participants of the survey. The survey will not use the collected data or
choice of the participants in any other operation except this particular research. The survey
questions and the optional choices will be made in a ethical manner that will not harm the
participant’s mentality, morality and perception.
6. Proposed time frame and budget of the research.
Time Frame:
Activity Staring Date Duration (Days)
Communicating with stakeholder 01-06-18 5
Making essential amendment in current
research plan
05-06-18 3
Planning the aims and objectives of this
research
07-06-18 5
Resource allocation to conduct the
research
10-06-18 5
Collecting secondary data with literature
review
15-06-18 10
Selection of appropriate research tools 22-06-18 2
Develop the Survey 24-06-18 2
Execute the Survey based data collection 26-06-18 10
Analyse the collected data 03-07-18 4
Finding conclusion 07-07-18 3

Gantt Chart:
Finding conclusion
Analyse the collected data
Execute the Survey based data
collection
Develop the Survey
Selection of appropriate research tools
Collecting secondary data with
literature review
Resource allocation to conduct the
research
Planning the aims and objectives of this
research
Making essential amendment
Communicating with stakeholder
30/5/18 9/6/18 19/6/18 29/6/18 9/7/18
Column1
Budget:
Activity Cost(USD)
Communicating with stakeholder 1500
Developing Research plan 800
Resource allocation 600
Payroll 2000
Decision Forecasting 300
Arranging literature review and secondary data collection 600
Subscribing research tool 200
Execute the Survey based data collection 800
Total 6800
7. Reference List.
Alkaya, E. and Demirer, G.N., 2015. Water recycling and reuse in soft drink/beverage
industry: a case study for sustainable industrial water management in
Australia. Resources, Conservation and Recycling, 104, pp.172-180.
Foxall, G., 2014. Strategic Marketing Management (RLE Marketing) (Vol. 3). Routledge.

Heath, J., 2014. Morality, competition, and the firm: The market failures approach to
business ethics. Oxford University Press.
Huang, X.C., Yuan, Y.H., Guo, C.F., Gekas, V. and Yue, T.L., 2015. Alicyclobacillus in the
fruit juice industry: spoilage, detection, and prevention/control. Food Reviews
International, 31(2), pp.91-124.
Hutt, M.D. and Speh, T.W., 2012. Business marketing management: B2B. Cengage
learning.
Jensen, B.W., Nichols, M., Allender, S., de Silva-Sanigorski, A., Millar, L., Kremer, P.,
Lacy, K. and Swinburn, B., 2012. Consumption patterns of sweet drinks in a population of
Australian children and adolescents (2003–2008). BMC Public Health, 12(1), p.771.
Malhotra, N.K. and Peterson, M., 2014. Basic marketing research. Pearson.
Moretto, N., Kendall, E., Whitty, J., Byrnes, J., Hills, A.P., Gordon, L., Turkstra, E.,
Scuffham, P. and Comans, T., 2014. Yes, the government should tax soft drinks: findings
from a citizens’ jury in Australia. International journal of environmental research and public
health, 11(3), pp.2456-2471.
Nudie.com.au (2017). nudie - about us. [online] Nudie.com.au. Available at:
http://www.nudie.com.au/about-us/ [Accessed 26 May 2018].
Nunan, D. and Di Domenico, M., 2013. Market research & the ethics of big
data. International Journal of Market Research, 55(4), pp.505-520.
Ronit, K. and Jensen, J.D., 2014. Obesity and industry self-regulation of food and
beverage marketing: a literature review. European journal of clinical nutrition, 68(7), p.753.
Sacks, G., Mialon, M., Vandevijvere, S., Trevena, H., Snowdon, W., Crino, M. and
Swinburn, B., 2018. Comparison of food industry policies and commitments on marketing
to children and product (re) formulation in Australia, New Zealand and Fiji. Critical Public
Health, 25(3), pp.299-319.
Spowart, M. and Wickramasekera, R., 2012. Explaining internationalisation of small to
medium sized enterprises within the Queensland food and beverage industry. International
Journal of Business and Management, 7(6), pp.68-80.
Wilson, R.M. and Gilligan, C., 2012. Strategic marketing management. Routledge.
Zikmund, W.G., D'Alessandro, S., Winzar, H., Lowe, B. and Babin, B., 2017. Marketing

Research: Asia-Pacific Edition. Cengage AU.