Boost Juice: Global Marketing Report

This report analyzes Boost Juice's anticipated endeavors in the Chinese market and identifies international marketing theories that will shape its decisions. It also discusses techniques employed by Boost Juice in Australia and recommendations for success in the Chinese market.

Student‘s Last Name 1
Global Marketing Report: Boost Juice
By (Name)
Course
Professor
University
Date

Student‘s Last Name 2
Introduction
In the discipline of international marketing, selecting an international market has become
one of the most difficult decisions for a firm is the decision concerned with market selection.
Firms are faced with questions of uncertainty when it comes to selecting international markets.
Entering international markets is even more problematic. However, in the recent, courtesy of
emerging trends such as globalization, selection, and entry into international markets have been
made relatively simpler. Products thriving in their local markets are no longer limited to their
local markets. This paper attempts to analyze the anticipated endeavors of Boost Juice, after
gaining a successful command in its domestic market in Australia, is expected to flourish in a
foreign Chinese market. The paper seeks to establish Boost Juice’s strengths that would enable
its products to successfully thrive in the Chinese foreign market. The report also identifies some
of the existing international marketing theories that will shape Boost Juice’s decisions, activities,
and practices before entering the Chinese market.
Theories
The foreign nation’s political, social and economic environments are key areas to
consider before a company or an international entrepreneur considers exploiting an international
market (Zahra, Newey and Li, 2014, p. 140). Moreover, firms wishing to enter in international
marketing need to be acquainted with relevant international business strategies to be applied in
these foreign markets. Before re-entering the Chinese market, Boost Juice ought to consider the
following theoretical concepts:

Student‘s Last Name 3
Hofstede’s Cultural Dimension Theory
This theory is associated with the efforts of Dutch social psychologist, Geert Hofstede. In
the theory, Hofstede hypothesized that societies either score highs or lows in the Power Distance
Indices, Individualism versus Collectivism, Masculinity versus Femininity, Uncertainty
Avoidance Indices, Long term versus Short term Normative Orientation and Indulgence versus
Restraint Indices (Duckers, Frerks and Birkmann, 2015, p. 85). For a business entity, the
consideration of whether its target group is negative, positive or neutral to Hofstede’s dimension
is critical (Kasdan, 2016, p. 467). Companies that seek to open or re-open international-based
branches need to consider how the cultural setting of the foreign culture scores in Hofstede’s
model. This would serve to prepare the company.
Market Segmentation, Targeting and Positioning Theory
The market segmentation, targeting, and positioning theory are constructed upon the idea
that firms need not necessarily provide their commodities to all individuals in a society. The
theory suggests that companies should divide the total market into many homogeneous groups
and provide their commodities according to the needs and preferences of each of these groups
(Bo Liu, et al., 2014, p. 452). The marketing concept of market segmentation, targeting and
positioning theory goes hand in hand with economics’ theory of specialization (Schopfel, Roche
and Hubert, 2015, p 77). The theory suggests that a firm should strategically aim a certain
population so that it provides efficiently and profitably to their customers.
Marketing Mix Theory

Student‘s Last Name 4
The market mix theory is formulated upon the significance of product, price, place and
promotion-commonly known as the 4Ps- in the field of marketing (Gordon, 2012, p. 123). The
theory attempts to identify the 4Ps as the important components that should be combined by a
firm that aims at taking profits and exploiting the markets. Many marketing practitioners are
convinced that the 4P paradigm has been a success toolkit in their organizations (Peattie, Peattie
and Newcombe, 2016, p. 6). Every firm, whether operating in the domestic or foreign markets,
need to focus on the quality of its products, the pricing, location place, and its promotional and
marketing strategies.
Porter’s Diamond Model
The Porters Diamond Theory of National Advantage attempts to explain the benefits
reaped by a country or a producer due to the possession of certain advantageous attributes.
Marketing’s Porter’s Diamond Model is synonymous to the international theory of comparative
advantage by David Ricardo (Sun, et al., 2012, p. 4). The theory presumes that a firm located in
an area endowed with a certain set of raw materials is likely to benefit more than a firm located
in areas lacking the raw materials. Advantaged firms will enjoy lower costs. Porter’s Diamond
Theory explains the rationale behind the fact that some countries and firms are more competitive
than others (Bakan and Dogan, 2012, p. 441). In essence, the natural position and endowment of
one firm may be an advantage over the other rival firms.
Porters Five Forces Theory
In addition to the Diamond Theory of National Advantage, Michael E. Porter suggested
another theory known as the Five Forces Theory. In this theory, Porter hypothesized that there
are five competitive factors that determine a firm’s success or failure in the industry. Porter’s

Student‘s Last Name 5
five forces include: the competition in the industry, possibilities of new entrants into the market,
the power of suppliers, power by customers and the threat from related and substitute products
(Yunna and Yisheng, 2014, p. 798). Before entering the market, a company should consider all
these forces and ensure that the forces are not working against them.
Techniques Employed by Boost Juice that has Facilitated Success
in Australia
Boost Juice Australia can deservedly boast of satisfying a large customer base using its
blended, juiced, smoothed and crushed juice drinks. Boost Juice Australia continues to derive its
benefits through high sales and a satisfied customer base. Boost Juice Australia has employed the
following techniques so as to achieve its current status:
Product Differentiation
The wide variety of drinks offered by the Boost Juice Australia allows customers to have
freedom in choosing of their favorite tastes. Consumers can choose on what product they want to
consume according to their personal tastes and preferences. Product differentiation mobilizes
consumers and augments the profitability levels (Hoberg and Philips, 2016, p 30). In Boost Juice
Australia, the concept of product differentiation is highly productive. The blended, crashed,
smoothed and juiced drinks are assigned a list of pleasant names such as Veggie Garden Blend,
Mint Condition Blend, and The Weekend Warrior.
Advertisements

Student‘s Last Name 6
Boost Juice has tremendously benefitted from its large investment in advertising across
the mainstream media platforms in Australia. Each time Boost Juice comes up with a new
product, advertisements are conducted to promote the new product. This has, in turn, led to high
returns to the company. The company also advertises using social media platforms as well as its
websites. In 2017, through its website, Boost Juice stepped up advertised on its new smoothed
juice with reduced fat and high protein components (Wellard, et al., 2017, p. 575).
Techniques that would work in China
Both product differentiation and advertisements techniques are likely to work in China.
Due to the cultural diversity in China, Boost Juice’s differentiated drinks will serve a great
purpose in satisfying the Chinese markets. The utilization of Chinese vast television networks
may also convince a large proportion of the Chinese population that the new juice in the market
is the real deal. Most of the Chinese residents have access to television sets. Utilizing these
media channels will certainly exploit the Chinese market and bring large amounts of profit to
Boost Juice.
Cultural Differences in Australia and China that influences
Marketing Decisions
China and Australia are located in two different continents. The country’s citizens have
differences in language, religion, lifestyle, and political ideologies. Venturing into the Chinese
market would largely require the observance of Hofstede's Cultural Dimension Model to analyze
where China scores high and low in the different categories and indices provided. For instance,
while Australians are capitalists, the Chinese are communists. In the Individualism versus

Student‘s Last Name 7
Collectivism model, the Chinese citizenry is likely to score high in collectivism. Different
appropriate strategies thus need to be applied when venturing in these two markets. However, the
product differentiation of Boost Juice’s products is likely to settle the problems that may arise
from diversity.
Recommendations of how Boost Juice can succeed in the Chinese
Market
In China, to attract as many customers as in Australia will be a difficult task for Boost
Juice. This would be due to the fact that there in China, there exists similar juice producers to
whom Boost Juice Australia has to outcompete. The Chinese population has already formed
loyalty to some of the existing juice brands in China. As explained in Porter’s Five Forces
Theory, presence of substitutes and the size of the competitor are likely to limit an intruding
firm. However, if Boost Juice could only increase its advertisements in the Chinese media, the
company may breakthrough. The advertisements are recommended to be rather in Chinese and
not English.
Conclusion
To sum up, Boost Juice Australia’s anticipated re-entering into the Chinese market would
be a success if the company focuses on aligning with the aforementioned theories. To acquire a
large share of the Chinese high population, it would be necessary for the firm to conduct
thorough advertisements reminding Chinese citizens of the product. In a language familiar to
them, advertisements done in Chinese are likely to attract and compel many Chinese customers.

Student‘s Last Name 8
Differentiated drinks in form of smoothed, crushed, blended and juiced products may be
considered as one of the strongholds of our Juice. Although the company may not gain as many
customers in China as in its home country, Boost Juice should remain bold with its marketing
strategies. Eventually, due to the company’s competitive prowess, the company may gain a large
proportion of the market, which will certainly translate to bigger profits.

Student‘s Last Name 9
Bibliography
Bakan, I. and Doğan, İ.F., 2012. Competitiveness of the industries based on the Porter’s diamond
model: An empirical study. International Journal of Research and Reviews in Applied
Sciences, 11(3), pp.441-455.
Bo Liu, H., McCarthy, B., Chen, T., Guo, S. and Song, X., 2014. The Chinese wine market: a
market segmentation study. Asia Pacific Journal of Marketing and Logistics, 26(3), pp.450-471.
Dückers, M., Frerks, G. and Birkmann, J., 2015. Exploring the plexus of context and
consequences: An empirical test of a theory of disaster vulnerability. International Journal of
Disaster Risk Reduction, 13, pp.85-95.
Gordon, R., 2012. Re-thinking and re-tooling the social marketing mix. Australasian Marketing
Journal (AMJ), 20(2), pp.122-126.
Hoberg, G. and Phillips, G., 2016. Text-based network industries and endogenous product
differentiation. Journal of Political Economy, 124(5), pp.1423-1465.
Kasdan, D.O., 2016. Considering socio-cultural factors of disaster risk management. Disaster
Prevention and Management, 25(4), pp.464-477.
Peattie, K., Peattie, S. and Newcombe, R., 2016. Unintended consequences in demarketing
antisocial behaviour: project Bernie. Journal of Marketing Management, 32(17-18), pp.1588-
1618.
Schopfel, J., Roche, J. and Hubert, G., 2015. Co-working and innovation: new concepts for
academic libraries and learning centres. New Library World, 116(1/2), pp.67-78.

Student‘s Last Name 10
Sun, S.L., Peng, M.W., Ren, B. and Yan, D., 2012. A comparative ownership advantage
framework for cross-border M&As: The rise of Chinese and Indian MNEs. Journal of World
Business, 47(1), pp.4-16.
Wellard, L., Koukoumas, A., Watson, W.L. and Hughes, C., 2017. Health and nutrition content
claims on Australian fast-food websites. Public health nutrition, 20(4), pp.571-577.
Yunna, W. and Yisheng, Y., 2014. The competition situation analysis of shale gas industry in
China: Applying Porter’s five forces and scenario model. Renewable and Sustainable Energy
Reviews, 40, pp.798-805.
Zahra, S.A., Newey, L.R. and Li, Y., 2014. On the frontiers: The implications of social
entrepreneurship for international entrepreneurship. Entrepreneurship Theory and
Practice, 38(1), pp.137-158.