Detailed Marketing Situation Analysis Report for H2Coco - 1003MKT

This report provides a comprehensive marketing situation analysis of H2Coco, an Australian company known for its coconut-based products. It begins with an introduction and company background, highlighting H2Coco's presence in major retail outlets. The analysis covers the market environment, including macro factors like political, economic, technological, legal, and environmental influences, and micro factors such as company and competitor analysis. The competitive landscape is examined, focusing on Nudie Coconut Water, Natural Raw C, Taste Nirvana and Cocobella. The report also delves into consumer analysis, identifying target demographics and psychographic factors influencing buying decisions. A SWOT analysis summarizes the company's strengths, weaknesses, opportunities, and threats. Finally, the report offers recommendations and a conclusion based on the findings.

Running head: MARKETING
Situation Analysis for
H2COO
Author XXXXXXXXXXXXXXXXX
SID XXXXXXXXXXXXXX
1003MKT – Introduction to Marketing
Tutor:
Trimester1, 2018

1MARKETING
Table of Contents
Introduction and Company Background..........................................................................................2
Introduction..................................................................................................................................2
Company Background..................................................................................................................2
Situation Analysis............................................................................................................................3
Market Analysis...........................................................................................................................3
Macro Environment Analysis......................................................................................................4
Political Analysis......................................................................................................................4
Economic Analysis...................................................................................................................5
Technological Analysis............................................................................................................6
Legal Analysis..........................................................................................................................7
Environmental Analysis...........................................................................................................7
Micro Environment Analysis.......................................................................................................8
Company Analysis...................................................................................................................8
Competitor Analysis.................................................................................................................9
Competitive Market Summary.................................................................................................9
Consumer Analysis.................................................................................................................11
SWOT Analysis......................................................................................................................12
Recommendations/Conclusion......................................................................................................13
Reference List................................................................................................................................15

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Introduction and Company Background
Introduction
The report aims at providing an insight into the H2Coco, a company known for its
coconut-based products. The products of H2Coco are found in various national outlets that
includes Supermarkets, Chemist Warehouse and Priceline (h2coconut.com, 2018). A marketing
plan is necessary since it helps the leaders of the company in developing and keeping an eye on
the functional areas for meeting the expectations. It is necessary for implementing a marketing
plan for H2Coco since it helps the company in developing products for meeting the required
needs of the target customers. In addition, a good marketing plan helps the customers in
understanding the products of the concerned company. In recent times, there was an
investigation undertaken based on the fact that the company was publicizing its coconut water as
a composite blend of the minerals, amino acids, vitamins, enzymes, antioxidants, phytonutrients
and hormones that enhanced growth which the company could not substantiate with necessary
claims. The marketing plan initiated helped the customers in receiving the right amount of
information, avoid any misguidance and increase sales.
Company Background

3MARKETING
H2Coco is company based in Australia primarily known for its pure coconut water
products. It is in fact one of the favourite coconut water brands in New Zealand and Australia.
The product range of the company includes chocolate milk, iced coffee and various types of
dairy alternatives (McGoldrick, 2017). The company provides a Lunchbox range perfect as
packed lunches. Most of the products of H2Coco are not only 100 percent natural but is gluten
and dairy free with no preservatives and artificial ingredients. The company with its healthier
choice of products ensures a healthier lifestyle. It is found that one in every four Australians is
actively trying to reduce the sugar intake and this aspects has been taken care of the newer range
of H2Coco that are not only 100 percent natural alternatives of fruit juices that are not only
flavoured, hydrating and contains less amount of sugar compared to the juice boxes. After
making a mark in the watermelon and coconut water based products, H2Coco entered into two-
year partnership with Surfing NSW, which is the longest and the largest running state body
representing the sport of surfing, thereby becoming its official coconut water. In recent times,
the company has also collaborated with the Woolworths Petrol thereby ensuring healthier bites.
Situation Analysis
Market Analysis
The food and beverage industry is dynamic and is driven by the consumers’ demand who
seek quality, value and diversity. The range of food availability reflects the cultural and ethnic
diversity of Australia (Heasman & Lang, 2015). Many are various specialty products that have

4MARKETING
Middle Eastern, Asian and European influences. Foods with certain specific attributes are
ensured food certification standards and systems. However, the industry focused internationally
with the exports in more than 200 markets.
The present beverage sector in Australia has a growth of around 2.2 percent that
represents the second strongest growth in the manufacturing sub division. In the current year, the
revenue of wine production has an expected growth of about 7.1 per cent that is close to $ 6.2
billion(4). The Australian industry recovers from wine surplus due to the structural over supply
for almost a decade along with lower prices of the grapes and increased number of the wine
producers in the Australian industry. The strong demand for exports in combination with the
poorer harvests in Argentina and Chile has led to an undersupply to the exporters. The Australian
wine makers have picked up the slack by producing higher quality of wine. However, the wine
industry in Australia is fragmented with a number of smaller producers. The largest of them
includes the treasury wine that is expected to grow by about 7.4 percent in the current year that is
closely in line with the average of the industry. The manufacture of beer declined in the last five
years ranging from 0.7 percent to $4.2 billion (Anderson & Aryal, 2015). There was also a
decline in the consumption of beer during the period along with a shift to low carbs labels. This
negatively affected various companies manufacturing beer.
Macro Environment Analysis
Political Analysis
The regulatory and government institutions of Australia are not only reliable but also
impartial, transparent and internationally competitive thereby ensuring companies like H2Coco

5MARKETING
with a secure and safe business framework (Evans & De Graaf, 2013). Political Analysis refers
to the government policy that includes:
 Degree of intervention in economy
 The goods that the government supports providing
 Subsidization of the firms
 Priorities in terms of business support
Australia represents a safe destination for any sort of investment. The regulatory and political
environment of the country is not only progressive and open but provides the investors with
higher degree of certainty and confidence. The country effectively responds to the economic
challenges with a highly adaptable policy of the Australian government.
Economic Analysis
This involves factors that act as the determining factor for the performance of the
economy that directly can influence the long-term performance of a company like H2Coco
(Baker, Merkert & Kamruzzaman, 2015). The economic factors include:
 Economic system and condition
 Policies of the government
 Policies of the Industry
 Policies related to export and import
Australia represents one of the major capitalist economies of the world and is dominated by
the service sector. Companies like H2Coco however find an ease is doing business since the
country ensures continuous economic growth, lower unemployment and lower public debt,
stronger and stable financial system, have an open market with minimum restrictions.

6MARKETING
Social Analysis
The social factor that exists within population includes:
 Beliefs
 Custom
 Policies
 Behavior
The environment of Australia environment represents a collection of varied people
(Haslam et al., 2014). The changes in the social trends directly influence the demand for the
products of a firm and the willingness and availability of the individuals at work.
Technological Analysis
This involves factors like:
 Research and Development Activities
 Automation
 Technological Incentives
 Rate of Technological Changes
The influence of the newer technologies helps in creating new process and products
(Stromquist & Monkman, 2014). This is because technology can not only reduce the cost but
also lead to the improvement of quality thereby leading to innovation. Such developments acted
as benefits to the organization and the consumers.

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Legal Analysis
Some of the legal environments under which firms operate include:
 Introduction of the age discrimination
 Legislation for disability discrimination
 Increase of the minimum wage
 Greater necessity for firms in recycling
The legal system of Australia depends on the primary belief of justice, law and independence
of the judiciary (Barker & Branson, 2014). The country treats all people equal before the law.
The constitution of Australia led to the establishment of a federal system of the government
according to which power is distributed between the states and the federal government.
Environmental Analysis
The acts initiated for environmental protection includes:
 Protection for Environment Act of 1974
 Protection for Environment Act of 1978
 Protection of the Sea Act of 1981
 Protection for the Whale Act 1981
The increasing desire for protecting the environment is directly having an influence mostly in
the transportation and the travel industries (Meng, Siriwardana & McNeill, 2013). This has
resulted in a move towards the environment friendly processes and products that influences the
patterns of demand and helps in creating business opportunities.

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Micro Environment Analysis
Company Analysis
The three major positive things about H2Coco include:
 The company H2Coco thinks in an innovative manner by thinking out of the box through
the launch of a new alternative of fruit juice along with a newer range of lunchbox.
 H2Coco the favorite coconut water brand of Australia gets into a partnership with the
Surfing NSW that is one of the longest and the largest state running body for sport of
surfing in the continent of Australia. The partnership makes it the official coconut water
of Australia (McGoldrick, 2017)
 The company also enters into partnership with Woolworth Petrol for launching the
campaign for the healthier bite.
The three major negative things about H2Coco include (McGoldrick, 2017): It has been found that the coconut water contains has more sugar content which accounts
for close to 70 calories. Whenever mixed with the fruit juice, the content becomes more
sugary. The processed coconut water has lower levels of electrolytes due to the process of
pasteurization. For getting the daily amount of the potassium, it is necessary for drinking more than 1.5
litres of the coconut water. Laboratory test has proved that the ones available in the tetra
packs does not contain sufficient amount of magnesium and sodium.

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In spite of its negativities, H2Coco of Australia has been quite in demand amongst the
Australian people.
Competitor Analysis
The three direct competitors of H2Coco are as follows (Fleisher & Bensoussan, 2015):
 Nudie Coconut Water
 Natural Raw C
 Taste Nirvana
 Cocobella
Points of Similarities
The point of similarities exists in terms of the target market, product and prices. In cases of
some there exist certain similarities in the promotional and distribution methods adopted,
Points of Differences
The point of the competitors in some cases lies in the distribution and the promotional
strategy along with difference amongst a difference in the strengths and weaknesses of different
coconut water brands.
Competitive Market Summary
Competitor Target Market Product Price Promotional Distribution Strength/
Weakness

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Nudie Coconut
Water
Health conscious
people, tourist
and sportsmen
First ever coconut
water with no
added sugar,
preservatives or
additives
$5.00 pe
r 1L
Focuses on the
building of the
overall brand
equity
Intensive
Distribution
Strategy
Main
Strength:
It is natural,
have
hydrating
qualities and
a great taste
and higher
nutritional b
enefits
Main
Weakness:
Have
unsuccessfu
lly
perceived
value
pricing
Natural Raw C Tourist,
sportsperson,
health conscious
people
Natural coconut
water with no
preservatives or
additives
$5.00 pe
r 1L
Follows unique
strategy for
promotion that
ensures direct
comparison
with
competitors
Intensive
Distribution
strategy
Main
Strength:
Comes with
re-saleable
packaging
Main
Weakness:
Refuses
deviating to
other
flavours
Taste Nirvana Health conscious
people,
sportsperson and
tourist
Organic coconut
water
manufactured in
eco-friendly ways
9.5
ounce
(Pack of
12 )
Promotes
overall equity
of the brand
Adoption of
unique
distribution
channel
Main
Strength:
Has eco-
friendly
distribution
and
manufacturi
ng process
Main
Weakness:

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Has smaller
distribution
networks
compared to
the
competitors
and
unpleasant
pulp
Cocobella Specially kids Natural Coconut
Water with no
additives or
preservatives
$5.00
per 1L
Undertakes
promotional
that leads to the
promotion of
overall brand
equity
Adopts
unique
distribution
channels
Main
Strength:
Have
diverse
range of
products
Main
Weakness:
Since it
sources the
coconut
from the
various
countries so
there exist
inconsistenc
ies in taste.
Figure: Tabular Representation of Competitive Analysis
Source: (Fleisher & Bensoussan, 2015)
Consumer Analysis:
The customers include the sportsperson, tourist, health conscious people and sometimes
the kids. They primarily buy quality products at an affordable price. The consumers primarily
buy the product of H2Coco so that they can not only consume it at breakfast, post work out or at
the afternoon or night (Rödiger & Hamm, 2015). If one considers the psychographic factors then