Marketing Practice: Sobah Beverages

This marketing practice report focuses on Sobah Beverages, a newly innovated non-alcoholic craft beer infused with Australian spices and fruits. The report covers its marketing mix, market segmentation, value proposition, and more. The product is targeted towards the younger generation in Australia, with the aim of reducing alcohol consumption by the youths. The report also highlights the importance of identifying and reinforcing the value proposition of a new brand in the market.

Marketing Practice 1
Marketing Practice: Sobah Beverages
Student Name
Institution Affiliation

Marketing Practice 2
Table of Contents
Introduction.................................................................................................................................................3
Marketing Mix.............................................................................................................................................5
Market Segmentation..................................................................................................................................6
Importance of Value Proposition.................................................................................................................6
Function of Product Element in the Marketing Mix.....................................................................................7
Function of Price Element in the Marketing Mix.........................................................................................8
Function of Place Element in the Marketing Mix.........................................................................................9
Function of Promotion Element in the Marketing Mix..............................................................................10
Conclusion.................................................................................................................................................11
Bibliography...............................................................................................................................................12

Marketing Practice 3
Introduction
The retail industry invests a lot of capital in new technologies, and this is why the sector
continues to thrive in new product innovations in the market. In particular, the food and drink
market has rapidly evolved in Australia due to advanced creativity and innovation in most
companies (Baker, 2016, p. 40). A number of new food and drink products have been innovated
and recently launched in the Australian market to satisfy the increased market and consumer
demands. The report will focus on one new product that is currently trending in the Australian
foods and drinks consumer market, whose name is Sobah Beverage. The increasing interest by
the society to see a more health-aware generation that avoids alcohol altogether has led to the
innovation of Sobah Beverage brand.
Sobha Beverage
The product brand “Sobah Beverage” is a newly innovated and introduced product in the
Australian market. Sobah Beverage is a premium non-alcoholic craft beer infused with
Australian (native) spices and fruits. The product is more healthy for use to the younger
generation. The main aim to innovate the brand was to reduce the increasing rates of alcohol
consumption by the youths in Australia (Foster, West and Francescucci, 2011, p. 15). The
ingredients used in making the Sobah Beverage comprise of the Carveza variant that has finger
lime (gulalung), an Australian native citrus fruit which provide a zesty flavor with slight
bitterness taste to the consumers.
Target Market
Sobah Beverages as a brand is offered by the Australian retailers to the younger generation. The
main target market for this product brand is the youth (both boys and girls). The increasing

Marketing Practice 4
interest of the society to breed a more heath and educated generation of the youth and increased
campaigns to reduce and increase alcohol consumption avoidance by the younger generation has
led to the innovation of Sobah Beverage that has no alcohol content in it (Hassan and Craft,
2012, p. 315). The brand targets to reduce the increasing consumption of beer by the younger
people who are under eighteen years of age.
Value Proposition
Food and beverage products are deeply rooted to the Australian culture. Sobah Beverage nurture
consumers body, health, soul, and hearts. The value of this brand in the Australian market is
incredible, and this is manifest in the high demand for the product by the younger generation
(Guthrie, Cuganesan, and Ward, 2008, p. 16). The brand has established sustainable domestic
connections between the retailers and the consumers. The major vision of launching this product
brand in Australian market is reducing alcohol consumption by the younger generation and
optimizes health living to the populations.
The Australian society has been bombarded by alcohol advertisements. Alcohol is a bizarre
product that is ubiquitous globally for many centuries. However, the innovation of Sobah
Beverage is helping greatly to reduce alcohol abuse in Australia. The product is being launched
in the market with intensive marketing campaigns and also highly advertised and promoted in the
online social media platforms (Huang and Sarigöllü, 2014, p. 130). Currently, the product is
highly demanded, valuable, and competitive in the Australian foods and beverages industry.

Marketing Practice 5
Marketing Mix
The launch of Sobah Beverage in the Australian market has been successful, and this is the major
reason behind the brand’s strong position in the market (Goi, 2009, p. 2). Sobah Beverages’
marketing mix is explained below:
Product: The new brand product offered in the market is Sobah Beverage. The product is non-
alcoholic whose main consumers or target market is younger generation. Launching Sobah
Beverage in the Australian market aims at reducing alcohol abuse by the youths. Sobah Beverage
is of high quality.
Price: The product is highly saturated in the Australian market given that it is made of Australian
spices and fruits. The producers and retailers offer the Sobah Beverage in different quantities and
sizes. The price is average and affordable to the customers. For instance, a 300ml Sobah
Beverage goes for Rs. 20 and 1 liter for Rs. 90.
Promotion: The new product is highly promoted and marketed in the Australian market through
social media platforms (Facebook, Instagram, Twitter), Google Ads, Television Ads, and the
internet. As a result, Sobah Beverage is available at all Australian markets and is being used by
nearly all youths due to the use of proper promotional tools.
Place: The main distribution channel for Sobah Beverage is intermediaries and mainly the
Australian retailers such as Woolworths and Wesfarmers. Other small retailers and wholesalers
in the Australian market sell the product to the customers (Tapp and Spotswood, 2013, p. 210).
As a result, the product is competing other beverages in the market and positioning itself strongly
with high sales.

Marketing Practice 6
Market Segmentation
The main market segmentation for Sobah Beverage lies in the demographic factors mainly in the
age and income of the consumers. Also, geographic and psychographic segmentation matter to
the success of this brand in the Australian market.
Age and income segmentation: The market for Sobah Beverage is composed of the younger
generation who normally has low and limited sources of income. People aged between 15-30
years form the product market. The income level for this age group is below average, and this is
why the product is sold at average prices.
Geographic and psychographic segmentation: The product is offered in all Australian cities and
regions. Currently, Sobah Beverage is segmented to all geographic areas in the country. On the
other side, the psychographic segmentation cuts across the parents, students, and children who
have accepted the product in the market.
Targeting
The target market is younger generation aged between 15-30 years. The product image and
features are of high quality and capture customers’ consciousness. The sobah beverage is non-
alcholic and is infused with native spices and fruits. Recent research shows that male consumers
consist of 60 percent of the market leaving the rest to the ladies (Rahbar and Abdul Wahid, 2011,
p. 80). The product is highly preferred by youth aged 15-22 especially the students at both
secondary and tertiary institutions.
Importance of Value Proposition
The “Sobah Beverage” is a highly valued and preferred non-alcoholic drink in the Australian
market and is strongly branded in the younger generation market across the country. Companies

Marketing Practice 7
must understand the importance of identifying and reinforcing the value proposition of a new
brand in the market (Moore and Pareek, 2009, p. 70). A strong customer value proposition
enhances a product’s competitiveness and sustainability in the targeted market. In this regard,
Sobah Beverage has a strong value in the Australian market due to its strong sense of nurturing
consumers’ body, health, soul, and hearts. The value of Sobah is very high in the market, and the
high demand for the brand in the Australian market justifies this reasoning.
Positioning
Sobah Beverage is positioned as a premium category product in the Australian market. As a
premium product in the market, the product’s position has been maintained with the producers
always seeking to advance its awareness and sales in the market. This has been important since it
inspires more sales and awareness to the target market.
The product is highly promoted in the market to raise its awareness and positioning in the
market. Use of right communication techniques and language is employed in marketing the
product (Belz and Peattie, 2012, p. 20). Unique and new features are continuously added to the
product, and this has increased the value propositioning of the brand in the target market.
Function of Product Element in the Marketing Mix
In the marketing mix, the new product under investigation is Sobah Beverage; which is a non-
alcoholic drink and has the younger generation as its main target market. The beverage has been
launched in the market recently to reduce the increased rates of alcohol consumption by the
youths (Mayer, Melitz, and Ottaviano, 2014, p. 500). The Sobah Beverage product elements and
functions that communicate its value proposition in the market include:

Marketing Practice 8
Native fruit and spices: Sobah Beverage product is made of Australian fruits and spices. The
major function of these components is to ensure that the Australian culture is incorporated into
the product since this forms the main target market.
Finger lime: Finger lime, largely known as (gulalung) is a cerveza variant which is a native citrus
fruit that is included when forming the beverage to bring a slight bitterness test to the drink. The
major function of this cerveza is creating a slight bitter taste in the product at least to
differentiate the product from other forms of non-alcoholic beverages.
Zesty flavor: This is another Sobah Beverages’ element that is used to add flavor to the product
and ensure its taste is unique to the consumers.
Function of Price Element in the Marketing Mix
Sobah Beverage, the non-alcoholic drink tastes better than ever. The product is charged
differently according to the quantity and size packed by the retailers. For example, a 300ml
Sobah Beverage goes for Rs. 20 and 1 liter for Rs. 90. Sobah is a fresh, light, and crisp taste
beverage which is chemical free. The major elements of pricing that communicate Sobah’s value
proposition to the Australian market include:
Customers: The main target market for Sobah are younger generation aged 15-30 years. Their
income levels is expected to be below average and so the prices charged will be reasonable. The
main function of customers element in pricing is determining their income level hence helping in
the prices to charge. In this case, prices range from Rs. 20 to Rs. 90.

Marketing Practice 9
Cost of product elements: The cost for finger lime, native fruits and spices, and zesty flavor also
help in setting the price for Sobah. The producing company ensures that the cost of raw materials
does not exceed the returns of the product sales to the company.
Positioning: The value proposition of Sobah is 100 percent will excellent customer satisfaction
levels. Since the target market have average income, the brand is cheaper and of high quality
hence increased sales.
Function of Place Element in the Marketing Mix
Since Sobah has no warehouses to store and distribute the beverage to the market, the product is
distributed to the target market by retailers and wholesalers in the Australian market. The use of
intermediaries helps in the distributed of the product across the country. As a result, the product
is competing other beverages in the market and positioning itself strongly with high sales (Addis,
2009, p. 79). The major elements of placement that communicate Sobah’s value proposition to
the Australian market include:
Transportation: Sobah is transported and distributed from the producer by the retailers and
wholesalers who supply the product across Australia. Through this ensuring that Sobah reaches
the desirable places where customers demand them, the value of the product remains high.
Inventory: The raw materials used in producing the Sobah Beverage are cheaply acquired and
delivered to the company by the local community. The quanity of stock stored in the producer’s
jurisdiction is controllable in order to limit the amount of money invested in storing raw
materials.

Marketing Practice 10
Warehousing: Only a few Sobah Beverages are stored in the company’s warehouse. The product
is fast moving and in most the times it is in the hands of the retailers and wholesalers. This has
helped in increasing the value proposition of the brand in the entire country since it is not
convenient to establish warehouses at all locations in Ausralia.
Function of Promotion Element in the Marketing Mix
The success of Sobah in the Australian market is associated to its excellent and unique
promotional campaigns across social media, online Ads, Television Ads, and roadshow
campaigns. The product is offered at discount prices and retailers receive after sales services
which are shared with the customers’ appropriately (Lynn, 2011, p. 10). The major elements of
promotion that communicate Sobah’s value proposition to the Australian market include:
Sales promotion: In its advertisements, the discounts offered to customers on the purchase of the
product are included. When a new price cut has been introduced on Sobah, this is promoted to
the target market immediately through web adverts, social media platforms, and media
advertisements. As a result, the value proposition of Sobah increases in the Australian market.
Direct marketing: The product is also sold directly to the Australian target market rather than
using intermediaries and retailers in the distribution channel (Koplan and Brownell, 2010, p.
1488). Telemarketing, catalogs, promotional materials, and mailed brochures are the main direct
marketing channels used to promote Sobah. As a result, its value propositions continue to grow.
Digital marketing: Sobah is marketed digitally to the target market, and this covers a lot of
ground from content, web sites, search engine, and social media marketing. Since most youths
use smartphones and access the internet, this method helps increase Sobah’s value proposition in
the market.

Marketing Practice 11
Conclusion
The proper integration of marketing mix (product, price, place, and promotion) helps in
delivering a valuable proposition of a brand product in the market. Establishing reasonable and
fair price charges on the Sobah Beverage together with ensuring that the brand quality and
features supersede its price has ensured 100 percent customers satisfaction hence increased value
propositioning of the brand in the market. Also, the use of effective distribution channels has
ensured that the product is timely available to the target market place in the right time and
quantity that meets customers’ demands and need hence broadening its value proposition too.
Further, the adoption of excellent promotional campaigns that suit and address the target market
effectively has helped in increasing the sales and competitiveness of the brand in the non-
alcoholic drinks market of Australia. Therefore, a proper integration of marketing mix helps in
increasing a product’s value proposition to the target market.

Marketing Practice 12
Bibliography
Addis, S., 2009. Creativity and innovation. Rough Notes, 152(4), pp.78-80.
Baker, M.J., 2016. What is marketing?. In The Marketing Book (pp. 25-42). Routledge.
Belz, F.M. and Peattie, K., 2012. Sustainability marketing: A global perspective. (pp. 18-30.
Rotledge
Foster, M., West, B. and Francescucci, A., 2011. Exploring social media user segmentation and
online brand profiles. Journal of Brand Management, 19(1), pp.4-17.
Goi, C.L., 2009. A review of marketing mix: 4Ps or more?. International journal of marketing
studies, 1(1), p.2.
Guthrie, J., Cuganesan, S. and Ward, L., 2008, March. Industry specific social and
environmental reporting: The Australian Food and Beverage Industry. In Accounting
Forum (Vol. 32, No. 1, pp. 1-15). Elsevier.
Hassan, S.S. and Craft, S., 2012. Examining world market segmentation and brand positioning
strategies. Journal of Consumer marketing, 29(5), pp.344-356.
Huang, R. and Sarigöllü, E., 2014. How brand awareness relates to market outcome, brand
equity, and the marketing mix. In Fashion Branding and Consumer Behaviors (pp. 113-132).
Springer, New York, NY.
Koplan, J.P. and Brownell, K.D., 2010. Response of the food and beverage industry to the
obesity threat. Jama, 304(13), pp.1487-1488.
Lynn, M., 2011. Segmenting and targeting your market: Strategies and limitations.

Marketing Practice 13
Mayer, T., Melitz, M.J. and Ottaviano, G.I., 2014. Market size, competition, and the product mix
of exporters. American Economic Review, 104(2), pp.495-536.
Moore, K. and Pareek, N., 2009. SEGMENTATION, TARGETING AND POSITIONING.
In Marketing: The Basics (pp. 44-71). Routledge.
Rahbar, E. and Abdul Wahid, N., 2011. Investigation of green marketing tools' effect on
consumers' purchase behavior. Business strategy series, 12(2), pp.73-83.
Tapp, A. and Spotswood, F., 2013. From the 4Ps to COM-SM: reconfiguring the social
marketing mix. Journal of Social Marketing, 3(3), pp.206-222.