The Better Drinks: Marketing Case Study on New Product Development

This case study examines The Better Drinks' approach to new product development, specifically the launch of an avocado energy drink. It begins with an executive summary outlining the scope of the analysis, which includes SWOT and Porter's Five Forces analyses to assess internal strengths and weaknesses and external opportunities and threats. The study details marketing objectives, such as increasing sales and consumer base, and outlines the marketing strategy, including segmentation, targeting, and positioning. The new product aims to attract health-conscious consumers. The report covers the marketing mix and concludes with a discussion of the product's potential for success and recommendations for future innovation. References are provided at the end.

Case Study The Better Drinks

EXECUTIVE SUMMARY
In the present report, outlined about scope of new product development by The Better
Drinks on the basis of Swot and competitor analysis. New product of firm is Avocados energy
drink that helps to attract health conscious consumers and the product ingredients and amount
will be approved by nutrients. When launching new product firm will focus son effective
marketing to overcome sis major threat and therefore study summarized with marketing
objectives of firm which is to increase sales of product by 6 % within 2 months. The will helps
the firm in deriving consumer response towards new product and will helps in further innovation.
It assists to focus on more effectiveness and understanding market with development of
enterprise with its new products. Therefore, segmentation, targeting and positioning criteria has
been explained that helps to communicate several benefits in the market. Innovative products
assist to establish successful brand in the country.

Table of Contents
1. INTRODUCTION.......................................................................................................................1
MAIN BODY...................................................................................................................................1
2. SWOT analysis........................................................................................................................1
3. Porter's five forces model........................................................................................................3
4. The new product .....................................................................................................................4
5. Marketing objectives...............................................................................................................4
6. Marketing strategy..................................................................................................................5
7. Marketing mix.........................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
REFERENCES (APA)...................................................................................................................10

1. INTRODUCTION
Marketing analysis of any business studies about attractiveness and dynamics in special
market in the enterprise. In this way, several tools and techniques involved that helps to set
business strategies in the enterprise. It is also known as documented investigation which used to
consider planning activities to take appropriate decisions (Akay, Atalay Oral and Gül, 2016).
Present report is based on The Better Drinks which provide several types of fruit juice with
making more improvements to make better business. It is private sector business and operating in
different areas of the world. Furthermore, trade customers are promised to the enterprise which
will be better perform than competitors with listening customers’ needs and requirements. The
chosen business has mission to build strong New Zealand company which retain value of
honesty and integrity. The assignment will identify internal strength and weakness and external
opportunities and threats with the help of SWOT analysis on the basis of which new product will
be developed by the chosen enterprise for more effectiveness. Furthermore, it includes porter's
five forces model with the help of which firm will derive competition and ways to manage
rivalries threat. Further, the study will outline marketing objectives and strategies which will be
used by firm at the time of launch of new product.
MAIN BODY
2. SWOT analysis
In order to consider SWOT analysis, it can be stated that The Better Drinks consider
following discussion:
Strength
 The Better Drinks company provide fresh fruit juice which maintain quality and healthy
nutrition in it. It helps to building loyalty among customers towards business products
and services. Further, it helps in managing basic purpose of organisation which is to offer
healthy drinks to consumers for specific purpose.
 The chosen business has separation of corporate and brand identities which provides
greater brand innovation which is one of the prime goals to move in different areas of the
world (Lee, Lusk and Oey, 2016). The company encourages continuous market research
for manging innovation in drinks as per customers expectation an to attain competitive
advantage.
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 Continuous improvement in the enterprise is also one of the major strengths that assists to
respond better needs towards The Better Drinks. As a result, more customers' attraction
can be seen at workplace.
Weakness
 In the Better Drinks, lack of proper advertisement creates negative impact and humorous
which is controversial reflect in personality of its founders.
 The chosen brand is also dominated by multinational companies so that they are unable to
get proper response from customers regarding development of the enterprise (El
Gammudi, Salim and Sabil, 2017).
 Lack of belief of customers on the selected business products because at initial stage
more improvement require building trust of different country's people. This is because, in
different countries, profit margin on these products is very low which create major impact
on The Better Drinks (Dutta, Adhikari and Ray, 2016).
Opportunities
 The Better Drinks has opportunity to expand their operations in energy drink products so
that they can attract customers honestly and integrity. This is because, this product help to
attract young age of group who are going to gym. Also, the firm has the opportunity to
target specify consumers on the basis health problems. For example, launch of energy
drink specially for the vitamins, calcium, iron, etc.
 Furthermore, the selected company can expand their market with separation of corporate
and brand identities which helps to give greater brand innovation which is the prime goal
to move in new place (Huang, Wu and Wang, 2017). The company can focus on product
development and market penetration at the time to improve market share and product
portfolio.
 In addition to this, new organic product line can be implemented that helps to accomplish
strategic goals and objectives. Specific design for both supermarket and food service
industry has been designed within hotels, bars and restaurants.
Threats
 One of the major threats to The Better Drinks is large number of competitors such as coca
cola, Frucor, etc. Therefore, in large competition the selected business operates with
dominating position (Renton, Daellenbach and Davenport, 2016).
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 Implementation of quality and integrity increase cost to the company for particular
products on the country. Distribution network of the company is also affecting negatively
because it is not coupled with appropriate system.
 As compare to other competitors, The Better Drinks has low level of knowledge and
understanding regulating operations in different countries. Therefore, it also creates major
impact on results (Santoro, Vrontis and Pastore, 2017).
 Lack of marketing strategies can be threat to company as leading competitors are
involved in gaining consumer attention by promotion strategies and different tactics like
discounting schemes, competitive pricing, etc.
 Lack of social media advertising can also be threat to company as management of firm
lacks direct interaction with buyers.
3. Porter's five forces model
The Better Drinks deals in large market so that following are different elements which
shows high, medium and low level on the business: Bargaining power of buyers (High): In the market, large number of customers so that
their bargaining power is high. Customers are highly sensitive for price of this product so
that it becomes more expensive. Product of the company is unique so that brand is loyal
to the drink of them choose (Snyder and Worobo, 2018). Focus of The Better Drinks is
on customers’ needs and requirements so that it is essential to concentrate on their
bargaining power which helps to communicate and turn to increase several opportunities
at workplace. Bargaining power of buyers is high and therefore firm can focus on
proving promotional discounts and schemes on particular product for specific period of
time which will help in managing power of buyers. Bargaining power of suppliers (Low): The Better Drinks has different formula, colour
and flavour for their fruit juice. Product innovation helps to fulfil demand and
requirements of buyers so that firms can easily switch towards another supplier easily. It
is fairly easy so that bargaining power of supplier is low (Bruzzone, Vidal and Ares,
2015). Power of suppliers is which is biggest advantage to firm and therefore firm can
focus on maintain premium quality of products in order to create value of money
products with minimum cost.
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 Threat of new entrants (Moderate): In the market, there are several new firms
continuously take place in the market and compete with existing firms. Therefore, The
Better Drinks has moderate threat from them. Sometimes, to capture market at very low-
cost new entrants enter in the market which create impact on results and performances.
However, experience of them is very low so that improvement in performance required to
learn new things within the business organisation (Carter, Hancock and Cade, 2016). Threat of substitute (Low): Available substitute in the market consider performances
limitations or high prices that justify use over the products in the enterprise. In this
consideration, it can be stated that threat of substitute is low because customers are not
switching to substitute. Buyers are not likely to go for substitute because competitive
pressure in the industry is not exists (Golberg, Sack and Frey, 2016). Threat of substitute
is low and therefore company can focus on making innovation in drinks on the basis of
market research which will helps in grabbing consumer attention.
 Rivalry among existing players (High): The Better Drinks not growing rapidly because
in the country there are several other competitors exists. It makes very difficult for new
entrants to compete with large number of audiences. There are significant brand identities
among different firms so that to attain competitive edge rivalry is very high. Furthermore,
customers are also switching when they are getting additional benefits or discount or
offers (Dutta, Adhikari and Ray, 2016).
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4. The new product
New product of The Better Drinks is Avocados energy drink that helps to attract health
conscious consumers worldwide. This is because, health problems can be solved with using
energy drinks. Therefore, excessive or repeated consumption of this drink lead to cardiac
problems such as heart attack, arrhythmias, etc. (Akay, Atalay Oral and Gül, 2016). Energy
drinks also provide excellent source of daily fibre that helps to attract several customers. The
product ingredients and amount will be approved by nutrients. As avocados have higher
concentrations of many B vitamins, as well as beta-carotene, magnesium, and vitamins E and K.
The product will be offered for overall health purpose as the fruit helps in gaining energy, strong
bones and improves metabolic functioning.
5. Marketing objectives
In order to establish new product in market, there are several objectives possess by the
organisation to communicate more benefits and effectiveness. With this regard, more
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Illustration 1: Porter five forces
(Source: Porter's Five Forces Model of Industry Competiton, 2019)

profitability can be increasing that helps to deal with successful brand of energy drink (Huang,
Wu and Wang, 2017). Following are certain objectives to place new product by The Better
Drinks:
 To target 10 % health conscious consumer within 5 months.
 To increase sales of product by 6 % within 2 months
 To boost energy and choice of people towards healthy drinks by 3 %.
 To increase consumer base by 5 % within 7 months.
6. Marketing strategy
For the Better Drinks, following marketing strategy has been followed with conducting
research: Market segment: Segmentation is related with marketing for individual person targetting.
It helps to develop product and services in different ways of segmentation. There are
generally four ways such as demographic, geographic, psychographic and behavioural.
Demographic element consist segment on the basis of personal characteristics such as
gender, marital status, ethnicity, education, etc. (Renton, Daellenbach and Davenport,
2016). Furthermore, geographic segmentation considers by country, region, city, etc.
Psychographic aspect includes basis of personality, values, lifestyle, attitude, interest,
opinion, etc. From these all, the chosen business selected psychographic in which they
have option to provide new product Avocados energy drink on the basis of lifestyle
because it assists to measure product development with its effectiveness (Bruzzone, Vidal
and Ares, 2015). As a result, it can be stated that The Better Drinks can ascertained their
mission and vision to cope up with different types of customers in the country. Target strategy: In this aspect, The Better Drinks has several options that needed to
evaluate potential and commercial attractiveness in each segment. Therefore, they have
options such as criteria size, differences, money, focus on different benefits, etc. From
these all, money is the major perspective that is anticipated in profits for additional
marketing plans and other changes.
 Positioning: Positioning of The Better Drinks based on its unique selling proposition.
Therefore, it refers with customer attraction with providing them energy drinks. It helps
to protect people from diseases. Furthermore, new product make positioning to boost
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customers efficiency and performances. Marketing campaign also help to lead with more
profitability and effectiveness at workplace.
Market strategic plan of Avocados Energy drink by The better drinks will comprise three
channels of marketing which are discussed below:
Marketing Channel Activity Time frame
Direct marketing In this company will make use
of email which will be sent to
potential consumers with all
the details of new product
Till 3 months every alternate
day
Digital Marketing In this The Better Drinks
will make use of social
media platforms that is
Facebook and Instagram
where firm will focus on
content and price
marketing (Dutta,
Adhikari and Ray, 2016).
5 months regularly
Commercial marketing In this company will advertise
new product on television and
magazine
Television advertisement 3
times a day for a year
Magazine promotion will be
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Illustration 2: STP model
(Source: How to use Segmentation, Targeting and Positioning (STP) to develop marketing
strategies. 2019)

weekly till 3 moths.
7. Marketing mix
In order to consider effective marketing strategy, it can be stated that following are
certain elements consider important role to establish it in market:
 Product: The Better Drinks contained several ingredients in energy drink with adding
more elements. In this aspect, mainly customers are target who are belongs to sports,
youth generation of people, etc. Furthermore, it includes sugar free ingredients that
contain aspartame and acesulfame K. The new product by organisation is Avocados
energy drink where ingredients and amount will be approved by nutrients. The product
will be offered for overall health purpose as the fruit helps in gaining energy, strong
bones and improves metabolic functioning. Price: For the new product of The Better Drinks, competitive pricing strategy has been
followed that helps to make them market leader. In addition to this, cheaper pricing from
Red Bull helps to attract a greater number of customers. There are several competitors are
existing such as Tzinga, Moster, etc. As a result, it is essential to compete them with
providing effective products and services (El Gammudi, Salim and Sabil, 2017). Place: The Better Drinks must provide their products at different places so that they can
successfully manage their program to increase desired level of results. In this
consideration, online and offline there are two types of places where the chosen business
can provide their new product energy drink. In supermarket and convenience stores, it
can be placed along with competitive products which provide customer choice in
effective manner. Along with this, the chose business can also place their product in retail
store which helps to ascertained competitive goods which gives customer choice between
one to buy. They are distributing in all over the world so that it is essential to make
happier customers with using several strategies and methods (Lee, Lusk and Oey, 2016).
 Promotion: In the market, The Better Drinks consider their promotional strategy with
using different ways such as advertisement, music festival, shows, film, etc. Merchandise
store online and magazines also develop with extreme sport person. Hence, promotional
activities can be recall with brand that increase customer base. It contains successful
marketing strategy that assists to promote different products and services within the
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national and international areas (Akay, Atalay Oral and Gül, 2016). The firm will focus
on three types of marketing that is digital, direct and commercial and will be promoting
drink with specific labels and details in order to make consumer aware about the
ingredients of drink.
CONCLUSION
From the present study, it can be concluded that The Better Drinks take more effective
place in the market by introducing drinks for health-conscious consumers. The report outlined
internal and competitor analysis with the help of which demand and launch for new product is
determined. From the analysis it is analysed that company can focus on maintain premium
quality of products as power of suppliers is low. Further, company should focus on promotion
and marketing strategies which will help the firm in targeting differ type of consumer and will
aid in attaining competitive advantage. Moreover, it articulated about new product that is
Avocado energy drink is for specific health conscious buyers and is launched with the purpose of
promoting health, increasing market share and consumer base.
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