Report on International Marketing of Boost Juice

This report discusses the international marketing strategies of Boost Juice, a retail outlet in Australia. It covers the marketing techniques used in Australia, the potential marketing techniques for success in China, and the role of culture in marketing decisions. Suggestions are provided for Boost Juice to establish its market in China.

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Report on international marketing of Boost juice

Contents
Introduction.................................................................................................................................................1
Marketing techniques used by Boost juice in Australia...............................................................................2
Marketing techniques that can prove successful in China............................................................................3
Role of culture in marketing decisions........................................................................................................3
Suggestions.................................................................................................................................................5
In term of Porters diamond model...........................................................................................................5
In terms of Porters five force model........................................................................................................5
Conclusion...................................................................................................................................................5
References...................................................................................................................................................6
1

Introduction
The success of an enterprise motivates the owner of an organization to expand the
business in the international market. To avail more benefits, many companies are entering the
international market. Boost juice is a privately owned Australian company founded in the year
2000 by Janine Allis, it is a retail outlet engaged in selling of fruit juices and smoothies (Allis,
Janine Allis, 2019). The report is focused on the topic of International Marketing to Boost Juice.
It covers the important aspects of international marketing that need to be considered by the Boost
juice before diversifying its business from Australia to China. It also includes the various
marketing strategies that need to be adopted by the brand, to achieve success in the host country.
Marketing Techniques used by the Boost juice in Australia
Marketing mix model
Product- The product strategy followed by Boost juice is Focus strategy because the
focus of its products was on health intended people. It assisted the company in manufacturing
and offering healthy drinks including smoothies (low fat, skinny), crushes, and juices.
Personalized products were also offered by the company on its website.
Price- Boost juice has used Competitive pricing strategy to allocate a price to its
products. This was because it has a lot of well- established competitors like Pepsi, Coca Cola and
Starbucks. Boost juice has also followed the strategies of its competitors in determining the
price. It has kept the price range from $ 4.20 to $6.50 depending on the size and type of product.
Place- Boost juice has opened a number of retail outlets and has done partnerships with
Coles and Woolworths. Within a short span of time, it has also developed 100 franchised stores
in different parts of the world. At present, it is operating in 17 countries with a total of 350
stores.
Promotion – The promotional strategies adopted by the Boost juice was above the line
and below the line. The conventional media used for promotion were television and radio.
Posters, billboards and discount offers were included in below the line promotional strategy
followed by the company (juicer, 2015).
Other marketing strategy used
 Geographical segmentation – It has divided its market into different geographical units of
various countries like Malaysia, Singapore, and India.
 Demographic segmentation- The core target of the company were females of above 25
years of age who are health conscious and are looking for a healthy alternative.
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 Positioning is used by the brand by creating a Healthy drink that provides great taste,
energy without using artificial content.
 Internet marketing - Personalized smoothies and drinks were also offered by the company
on its website according to the taste and preferences of its customers.
 Campaign Marketing -‘What’s Your Name Game’ was one of the unique promotional
techniques.
 Social Media marketing was done by the active members of the campaign ’Free the fruit’
(Allis, 2013).
 Marketing on customer relations has also done by Boost Juice. This was done to provide
its customers the ease to communicate with the brand anytime.
 Paid advertising on Facebook and Instagram is also done to enhance its followers on
social media.
 Local area marketing is also conducted in the form of sponsorship of community events
to engage their local loyal customers.
 App marketing is also done by the development of the Boost app (juice, 2019).
Marketing techniques that can prove successful in China
Conducting Market Segmentation in the Chinese market is essential for Boost juice because it is
entering a new market and must know the needs and wants of its target customers.
Social media marketing of Boost juice on ‘We Chat’ can be proved successful because it has
billions of users.
Internet marketing
a. Websites like mop.com, Douban.com can also work in China because it has millions of
active users. These are important tools that can be used to target customers. This is
because the Chinese consumers are highly engaged in web searching and it is highly
recommended to be visible on the web to target the customers. The native language of
the country must be used in creating the content on the website to interpret the proper
meaning to the Chinese market (Prange, 2016).
b. Building e-reputation of Boost juice in the Chinese market can help the brand because
the consumer there must trust the brand before consuming it. This can be done by
assuring them with the proper information about the brand.
Paid advertising through Baidu (search engine) is also an effective marketing strategy that can
benefit the Boost juice in China.
A relationship marketing strategy can benefit the boost juice in China because Chinese
consumers look for a brand that provides them trust. This can be done by building a strong
relationship with the suppliers and the consumers (Huang, 2016).
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Role of culture in marketing decisions
Culture plays an important role in marketing decisions in both Australia and China. This
can be better understood with the help of Hofstede cultural dimensions.
Power Distance – This dimension denotes the inequality level marked at work place. China
ranks high in this index whereas Australia ranks low. For the marketing of boost juice in China,
it must frame advertisements in which formal relationship is shown between the superior and the
junior. In the case of America, the use of status symbol should be ignored in the media
advertisements of Boost Juice.
Individualism- It is marked high in Australia but low in case of China. It means that Australians
are more focused on themselves whereas the Chinese follow collectivism and consider
themselves as a part of a group and society. In Australia, marketing decisions should focus on
individual time saving, and personal benefits while in China marketing should be done to the
whole community. The Boost juice must provide its products in smaller packages to avoid
wastage by the individual customers in Australia while in the Chinese market it must market its
products in large packages and family packs to target groups.
Masculinity- Masculine culture is followed in both Australia and China. China is a more
masculine country in comparison to Australia. Values such as money, success are part of this
culture. For the marketing of Boost juice in both the countries, use of Australian and Chinese
celebrity’s endorsers must be initiated in advertisements and TV commercials because celebrities
are considered to be the ‘symbol of success’ in masculine culture.
Uncertainty avoidance -This dimension deals with the tolerating power of the people, in
relation to the unknown. Australia ranks intermediate whereas China ranks low in this index.
Guarantee, the stability of Boost products must be highlighted in its advertisements in China
because it is an unknown brand for the people and it is must to gain the trust of Chinese
consumers toward Boost because they avoid using new products. In Australia, people do not
resist much with new products. Hence, ‘Positive Change’ in the health of the people by
consuming boost juices, should be the key feature of its marketing.
Long term orientation- It simply means ‘focus on the future’. Australia ranks relatively low and
China ranks very high in this aspect. In Australia, Boost juice should promote its products as
‘Quick benefit provider’ to the customer because Australians focus on the current benefits of
products. While in China its marketing should be done by making the people aware about the
future health benefits of Boost Juice.
Indulgence- The degree to which people can control their aspiration is termed as indulgence.
Australia is marked high while China ranks low in this index. Australia can be an appropriate
market for the promotion of Boost Juice. This is because Australians focus more on relaxation
and boost provides health drink that will help in providing relaxation with easy reach. While in
China social advantages of Boost juice must be included in marketing (Dellner, 2014).
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Figure 1: Difference between Cultural dimension of Australia and China
(Insights, 2019)
In this figure, Australia is represented by the Purple bar and China with Blue bar.
Suggestions
In term of Porters diamond model
China must fulfill the factor condition of Boost Juice. It includes the availability of proper
resources, infrastructure availability and moderate heat climate to operate its business.
 Receiving proper support from the government of China can help the brand to establish
its market because it is providing a quality product (Juice) to the customers of China.
 Boost juice must identify the chance and random events that may occur in the market of
China, in order to gain a competitive advantage like developing monopoly (Eickelpasch,
Lejpras, & Andreas, 2010).
 Availability of related and supporting industries of boost juice can benefit the brand as
they can both benefit each other by producing complimentary goods like sugar and fruits.
 The brand must evaluate its Economies of scale in the Chinese market.
 By creating a proper marketing strategy like ‘Relationship marketing’ and by developing
an organized structure of the business (Tran, 2016).
In terms of Porters five force model
 It is suggested that Boost juice must have proper information about the number of rivals,
their strength and the marketing strategies of its competitors in the Chinese beverages
market. It should gain knowledge about the suppliers of fruits, no of alternatives and the
quality of product offered by them to establish its market (Child, 2019) .
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 It is recommended to conduct proper research regarding the number of buyers, their
bargaining power and the Boost juice substitute in the Juice market of China to offer
better service to its customers.
 Lastly, it should have the ability to cope up with the threats offered by the new entrant in
the market (Cgma, 2013).
Conclusion
Boost Juice is an Australian company that sales juices and smoothies to its customers. It
has earned success within a short span in Australia with the help of using marketing mix,
segmentation, targeting, positioning and other marketing techniques. This research report
includes the analysis of similar marketing techniques that can prove beneficial in China also
because the brand wants to establish its market in China also. It includes various cultural factors
like individualism, masculinity, long term orientation, uncertainty avoidance and indulgence as
an important part while taking marketing decisions in both the country. Proper suggestions were
also given with the help of Porters five force model and Porters diamond model to gain proper
knowledge about the business environment of China. Hence it is concluded that boost juice can
prove successful in the Chinese market also if proper marketing techniques were adopted by the
brand.
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References
Allis, J. (2013). the secret of my success. New Jeresy: John wiley & Sons.
Allis, J. (2019). Janine Allis. Retrieved June 3, 2019, from Janineallis: https://www.janineallis.com.au/
Cgma. (2013, June 11). Porters five forces of competitive position analysis. Retrieved June 2019, 2019,
from Cgma: https://www.cgma.org/resources/tools/essential-tools/porters-five-forces.html
Child, G. (2019). Porters five force model. Retrieved June 3, 2019, from Interaction design foundation:
https://www.interaction-design.org/literature/article/porter-s-5-forces-model-design-in-
context-understand-the-market
Dellner, A. (2014). Cultural Dimensions. Munich: GRIN Verlag.
Eickelpasch, A., Lejpras, A., & Andreas, S. (2010). Applying Porters Dimond Model at the firm level. 38.
Huang, S. (2016, February 12). How to tap into Chinese market. Retrieved June 3, 2019, from
AlphaGamma: https://www.alphagamma.eu/entrepreneurship/online-marketing-channels-list-
china/
Insights, H. (2019). Hofstede Insights. Retrieved June 3, 2019, from Hofstede Insights:
https://www.hofstede-insights.com/country-comparison/australia,china/
juice, B. (2019). Boost. Retrieved June 3, 2019, from Boost juice: https://www.boostjuice.com.au/about-
boost-juice/
juicer, P. B. (2015, February 24). Booster Juicer. Retrieved June 3, 2019, from Phamtan booster juicer:
http://phamtanboosterjuice.blogspot.com/2015/02/marketing-mix_24.html
Prange, C. (2016). Marketing Entry in China. Berlin: Springer.
Tran, P. (2016, November 23). porters dimond explained with an example. Retrieved June 3, 2019, from
Linkedin: https://www.linkedin.com/pulse/strategy-1-porters-diamond-explained-example-
peter-tran
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