Case Study: Marketing and Strategy Analysis for Better Drinks Company

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Case Study
AI Summary
This case study analyzes The Better Drinks Company, a beverage company with a strong brand presence, particularly in New Zealand. The report begins with an executive summary, highlighting the importance of marketing and strategy for business success and introduces a new product, Fresco Coffee, designed to compete with the fresh juice market by targeting health-conscious consumers. The study then presents a detailed situation analysis, including the company's background, brand portfolio, and external environment analysis, including market description and competitor review. It further explores the company's strengths, weaknesses, opportunities, and threats through a SWOT analysis and assesses the external environment using PESTLE and Porter's Five Forces models. The marketing objectives, strategy (segmentation, targeting, and positioning), and marketing mix (product, price, place, and promotion) are then discussed, providing a comprehensive overview of the company's marketing approach. The case study concludes with a summary of key findings and recommendations for future strategies, emphasizing the importance of both traditional and web 2.0 marketing tactics. The document is a student submission providing valuable insights into marketing strategies, market analysis, and new product development within the beverage industry.
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The better
drinks
company
Case study analysis
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Executive Summary
Marketing and strategy are pivotal to the success of any business. The Better Drinks Company
started with a niche market and is slowly leading the beverage industry. Through this report, a
new product idea has been shared. The new product to be launch in the market is Fresco Coffee,
the coffee comes in two variant, green and black and is launched as a competition against the
fresh juice market. The product is targeted towards the health conscious people, who are
exploring different alternatives for Fresh Juices, and Fresco coffee fits exactly the lacunae and
will create a disruption in the market. The below report contain the competitive landscape, the
marketing mix and the strategies for the company to go forward. The marketing strategies are a
great amalgamation of traditional and web 2.0 strategies.
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Contents
1.0Situation analysis........................................................................................................................2
1.1 Background of the company..................................................................................................2
1.2 Brand portfolio.......................................................................................................................2
New Product: Fresco coffee.....................................................................................................2
External environment...............................................................................................................2
1.3 Market description..................................................................................................................2
1.4 Competitor review..................................................................................................................3
1.5 SWOT analysis.......................................................................................................................3
Strengths...................................................................................................................................3
Weaknesses...............................................................................................................................3
Opportunities............................................................................................................................3
Threats......................................................................................................................................4
PESTLE analysis..........................................................................................................................4
Political.....................................................................................................................................4
Economical...............................................................................................................................4
Social........................................................................................................................................4
Technological...........................................................................................................................4
Legal.........................................................................................................................................4
Environmental..........................................................................................................................4
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1.6 Porter’s five force model........................................................................................................4
Threat of new entry...................................................................................................................5
Threat of substitution................................................................................................................5
Bargaining power of suppliers..................................................................................................5
Bargaining power of buyers.....................................................................................................5
Competitive rivalry...................................................................................................................5
2.0Marketing objectives...................................................................................................................5
3.0 Marketing strategy.....................................................................................................................5
3.1 Segmentation strategy............................................................................................................5
3.2 Targeting strategy...................................................................................................................6
3.3 Positioning strategy................................................................................................................6
4.0 Marketing mix tactics................................................................................................................6
4.1 Product strategy......................................................................................................................6
The core product.......................................................................................................................6
The actual product....................................................................................................................6
The augmented product............................................................................................................7
4.2 Price strategy..........................................................................................................................7
4.3 Place strategy..........................................................................................................................7
4.4 Promotion strategy.................................................................................................................7
5.0 Conclusion.................................................................................................................................7
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Referencing......................................................................................................................................8
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1.0 Situation analysis
1.1 Background of the company
Charlie’s group limited is a producer of beverages drinks which was founded in 1999 and is
headquartered in New Zealand. The organization was established by three friends Marc Ellis,
Stefan Lepionka and Simon Neal. The organization is well known for its brand value and its
reputation for delivering fresh juice unlike competing brands that sell juices which are added
with concentrates and preservatives. The company got listed with the New Zealand stock
exchange in 2005 which was considered a major milestone for the firm. Since then, the business
has broken various geographical barriers and expanded its reach by catering to a mammoth
number of customers across the globe.
The mission of the firm is to deliver three Cs which the firm creatively announces as its vitamin
Cs. These include Commitment to listening, acting and recognizing, Creative in making things
happen and commercial selling for more.
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The goal of the business is to continue delivering ‘better’ quality products to its customers and
build a strong brand that is winning at home and overseas. The organization also aims to expand
its boundaries and enhance its target market while maintaining the values of honesty and
integrity in all business operations.
1.2 Brand portfolio
Different brands of products offered by a single organization collectively form the brand
portfolio of the organization (Kotler, 2015). The brand portfolio of ‘The Better Drinks Co’
includes five leading brands. These five brands are as below:
1. Charlie’s- This brand was started with the intention to sell fresh orange juice and has now
expanded its product line to quenchers, smoothies, juices for kids, honest fizz, iced coolers and
honest water.
2. Phoenix- This brand sells organic drinks including juices, sparkling juice drinks, organic
energy drink and soft drinks.
3. Juicy Lucy- This brand predominantly sells orange juice to select locations including limited
supermarkets and food service industry.
4. Real Iced Tea- This brand sells peach and lemon flavored iced teas which are also available in
green tea and citrus tea formats.
5. Stash Tea- This brand delivers truly precious and highly expensive black, green and herbal tea
which has been sourced from all around the world.
New Product: Fresco coffee
A new coffee brand must be launched with two products. Green Coffee and Black coffee. The
coffee would be available in caffeinated and decaffeinated forms. They are both cool coffees and
can be consumed on the go.
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External environment
New Zealand has one of the richest coffee cultures in the world. The coffee per-capita
expenditure of Kiwis is $37.3. A growing trend of making sustainable choices is also seen in the
Kiwi culture. Customers are widely getting influenced by the sustainability of their purchase
decision. The leading coffee brands currently operating in New Zealand are Javvah, Bushells,
Café Aurora, Nescafe, Robert Harris, Special blend and Pams. All these brands have a leading
name and have been well accepted in the New Zealand market.
1.3 Market description
The better drinks company has a clearly established its target market within the whole of New
Zealand as well as outside. The target customers of ‘The better drinks co’ include:
Targeted segment Customer Need Product Features or benefits
Kids Tasty breakfast companion Nutrition, Vitamin C and
healthy
Health conscious people Energy for maximized
performance
Low on sugar and high on
vitamin drinks
Office goers Evening energizer Refreshing and healthy drinks
Home makers Providing an evening drink to
family
Refreshing and energizing
drinks.
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1.4 Competitor review
Competition for refers to the other players within the same industry who are catering to the same
target audience as ‘The better drinks co’ (Wilson & Giligan, 2012). The competitors for the
better drinks co are as below:
Company Brands
Frucor Just Juice, Simply squeezed, fresh up, McCoy,
GForce, Allganics, Supreme and Arano Juice.
Coca-Cola Kerl and Thexton’s
Heinz Golden circle
International brands V8, Ocean spray and Ribena
New Zealand brands Nekta, Teza and TI
1.5 SWOT analysis
Strengths
1. Strong brand value: One of the biggest strengths of ‘The better drinks company’ is the
strong brand value that it holds in New Zealand and other countries. The brand
recognition among customers is high along with a positive TOMA score (top of mind
awareness).
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2. Early listing on the NZ stock exchange: The Better Drinks Company got itself listed on
the New Zealand stock exchange within 6 years of its inception. This is a clear evidence
of the strong brand value demonstrated by the company as well as the solid trust that
people have bestowed upon the brand. Listing on the stock exchange has given the
company the access to a larger source of funds which has further strengthened brand
operations (Brigham & Houston, 2012).
3. Organizational culture: Organizational culture plays a crucial role in the success of any
business (Hendry, 2012). The better drinks company’s employees are encouraged to take
risks and try new things. They have a policy of open and transparent communication and
the organizational structure is decentralized. This helps employees in having an enhanced
sense of ownership for the organization which further improves their performance
(DeKay, 2012).
Weaknesses
1. Limited products: The better drinks company is currently offering limited products. Their
product line is rather small which gives its competitors an advantage over the brand.
Therefore, the company must work upon introducing newer products and flavors like
Kiwi, papaya, plums, oreos and other products.
2. Controversial advertisements: The better drinks company has been making rounds in the
news owing to a few controversial commercials released by the company. This has
adversely impacted the brand’s image in the minds of a certain segment of the society.
The organization must be careful in the future and must introduce commercials which
target the company’s entire target market without offending any section of the society.
3. Expensive pricing: Because the company sources the best quality fruits from different
parts of the world and makes sure that there are no preservatives in their offering, the
price of beverages offered by them is relatively high. The organization has adopted a
premium pricing strategy wherein the company sets the price of its products high in order
to target a niche market of consumers (Nagle, Hogan & Zale, 2016).
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Opportunities
1. Expanding product line: An important opportunity before The Better Drinks Co is
expanding its product line and introducing new products which would target a wider
customer segment. Introducing new products would help the brand in enhancing its target
customers and hence increasing revenue (Joji, 2011). Product line extension will also
eradicate the competitive advantage that other firms currently have against The Better
Drinks Co.
2. Expanding geographical presence: Breaking geographical boundaries and entering
countries with a large population specifically in Asia would assist The Better Drinks Co
in gaining a larger customer base. An industry analysis must be conducted for countries
like India, China and Japan. Based on the attractiveness of the country, The Better Drinks
Co must launch themselves in the respective country.
3. Social media marketing: Promoting any product or service through platforms like
Facebook, Instagram, Twitter, Pinterest or even Snapchat is known as social media
marketing (Heymann-Reder, 2012). This is a relatively growing phenomena and The
Better Drinks Co must work towards enhancing its presence on these platforms in order
to reach out to a larger audience through a single channel.
Threats
1. Increasing competition: Increasing competition in the industry poses a major threat to
The Better Drinks Co. This is because increasing competition provides the same target
audience with a larger number of options for a product. This in turn may lead to price
wars. Hence it is imperative that The Better Drinks Co continues to hold a competitive
advantage.
2. Healthy brand image of The Better Drinks Co may not appeal to children who wish to
have aerated drinks. Children form a large target market for the beverage industry across
the globe. Inability to cater to them poses a threat to the organization.
3. The organic market is yet immature in many countries and hence there might be a lack of
acceptance for the product line of the better drinks co. Moreover the premium pricing
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strategy of the business also makes it difficult for people to readily accept the product.
This is why the organization needs creative forms of promotion.
PESTLE analysis
Political
The Monarchy of New Zealand is relatively stable and that provides organizations with a certain
amount of stability. The current Prime Minister Jacinda Ardern has a progressive philosophy and
has been putting efforts in encouraging the growth of local businesses.
Economical
Globalization of the world has made it easier for the better drinks company to reach out to a wide
customer segment outside the geographic boundaries of New Zealand. Well developed transport
network
Social
Changing societal norms have made people increasingly health conscious (Charter, 2017). This
is where the demand fresh juice plays a bigger role in the success of the better drinks company.
Improving lifestyle of people also enhances demands for branded beverages.
Technological
Use of ozone as a technological disinfectant, sterilizer and preserver can be adopted in order to
make beverages more stable with an increased shelf life. Technological advancement of the
society is also an added advantage for the better drinks company as it makes the process of
promotions and targeting easier and effective.
Legal
Different food safety standards govern different countries which makes it difficult for TBDC to
adhere to a uniform code. The beverage industry is supervised strictly and hence the organization
must make ensure that all standards are effectively met.
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