Boost Juice: International Marketing Report for China Market - MKT303

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This report provides a comprehensive international marketing plan for Boost Juice's re-entry into the Chinese market. It begins with an introduction to the brand and the report's focus on repositioning Boost Juice. It then applies Hofstede's cultural dimensions to understand the Chinese market's cultural nuances, including power distance, individualism, masculinity, and long-term orientation. The report proceeds to analyze market segmentation, targeting, and positioning strategies for Boost Juice, identifying the youth and middle-class populations as the primary target audience. The marketing mix (product, price, place, and promotion) is discussed, with recommendations tailored to the Chinese market. Porter's Diamond Model and Porter's Five Forces are utilized to analyze the competitive landscape and provide strategic recommendations for success. The report concludes by emphasizing the importance of adapting marketing strategies to the Chinese market, including pricing and promotional strategies, and the use of both traditional and digital marketing channels to enhance brand awareness and customer engagement.
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Running Head: INTERNATIONAL MARKETING
INDIVIDUAL REPORT ON
BOOST JUICE
International marketing
Report
Student Name: Harpartik Singh
Student ID: 123524
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INTERNATIONAL MARKETING 1
Table of Contents
Introduction.................................................................................................................................................2
Hofstede's cultural dimensions....................................................................................................................2
Market segmentation, targeting, positioning................................................................................................3
Marketing mix.............................................................................................................................................3
Porters Diamond model...............................................................................................................................4
Porters five force model..............................................................................................................................6
Conclusion...................................................................................................................................................7
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INTERNATIONAL MARKETING 2
Introduction
Boost Juice is an Australian retail company which is engaged in selling of fresh fruit juice along
with smoothies. This brand has evolved their business by focusing their business interest on
various platforms in Australia. They are also including other food related items which such as
fresh burgers along with Cibo Espresso. This report is focused on the repositioning of boost juice
in China market. It also includes Hofstedes cultural dimensions. In addition, it is also focused on
STP, marketing mix and Porter diamond model strategy. It also includes porter five force models
as competitive strategy to gain competitive advantage over other retail companies.
Hofstede's cultural dimensions
Power distance
In china society, it is believed that relationship between subordinate and superior is polarized and
there is no defense-related to power abuse from superior side (Shi and Wang 2011, p.11). In
China, individuals get influenced through formal authority and therefore offer opportunity to
boost juice retail to set up high promotional targets without questioning management which is
not possible in Australian context because they do not support polarized culture and will raise
question in context of their set up targets.
Individualism
In China people give importance to collective culture as compared to individual interest. There
are chances that employee commitment with organization may be low but their relationship with
each other is very cooperative in terms of support and guidance (Emery and Tian 2010, p.45). In
this situation, boost juice retail can make use of this culture to boost their product promotion in
China market by connecting work with collective culture. China people prefer interaction and
therefore this promotional team can approach target with juice drink habits personally to set up
product in their mind.
Masculinity
China is considered as one of the masculine society because these people are ready to sacrifice
family interest in their work. They are ready to offer their service even at late night. For them,
leisure time is not given so importance (Cheong, Kim and Zheng 2010, p.1). This offers
important opportunity to boost juice to expand their product reach to maximum possible region.
In Australia, people are not will to work for late hours but China culture offer great work base
for boost juice in terms of expansion.
Long term orientation
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INTERNATIONAL MARKETING 3
Chinese culture is pragmatic in nature because of which people in China believe that reality is
very much based on the situation and time. Here, boost juice can utilize this believe by
conveying that their product offer better health and tradition. They are good at adopting tradition
when things are related to change in order to obtain effective results.
Market segmentation, targeting, positioning
At present Fruit juice market in China is growing rapidly. Exports related to fruit juice to China
is exceeding every before. China is having almost 1.4 billion populations and growing middle
class which prefers fruit juice as medium of their drink habits. Due to rapid increase in
population, demand for fresh juice is increase on daily base. This offers a better opportunity for
boost juice retail to expand their business in China market. China population is a mix segment of
old, young and children. Among these segment, target audience for boost juice will be youth and
middle class population because at present these segment has become very conscious about their
health and are looking for those products which are healthy by nature and are available in
reasonable price (Elepu, Nabisubi and Sserunkuuma 2016, p.80). In order to position boost juice
in China market, company must understand that partnership with established players such as
subway and Gloria jean`s coffee are better option to reenter in China market because it will offer
ground knowledge in terms of market. While promoting boost juice, company must connect its
advertisement with consumer preferences related to fruits in order to make them feel that this
product is specially made for them (Zhang, Lusk, Mirosa and Oey 2016, p.156). Youths must
feel that they are very special for boost juice retail and hence their promoting ads must display
youth face only.
Marketing mix
Product
Boost juice will provide high quality fresh juice products which is rich in nutritious, healthy and
taste with new varieties in the form of crushes and delicious smoothies to attract potential target.
Boost juice will also serve supplementary snacks to add new taste (Menzies and Orr, 2014).
These products will offer them fresh feel and keep them hydrated during their daily work. In
addition products are sealed in a plastic bag in order to prevent it from bruises.
Price
Most of the youth population does not belong to earning profession and therefore company has
maintained their product price in such a way that they will feel that they are not spending extra in
order to keep their healthy better. Price is considered as one of the most effective attracting tool
for companies to position their product in minds of the youth population.
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INTERNATIONAL MARKETING 4
Place
The company will open its retail in those areas where populations of youth are more. Outlet will
be placed near colleges, university campus, sports club as well as software hub locations
(Musungwini and Zhou 2014, p.132). In addition, outlet will be located in housing societies in
which youth population is more in numbers.
Promotion
In this situation, company will make use of adopt strategy in which product will be manufactured
on the base of consumer demand, dose of sugar, flavour in order to position products in the
minds of the population by connecting their product with health. In addition, pricing strategy will
also play an important role in attracting youth population towards this product (Chen et al. 2016,
p.343).
Porters Diamond model
(Source: B2U 2020)
Strategy, structure and rivalry
In this stage, boost Juice retail have shared their product system, flavor with local partners
subway and Gloria jean`s coffee in order to boost business expansion in China because there are
already established player in the China fruit market which offer great competition such as
Zhongke Nature (Tianjin) Biotechnology Co and Hainan Nicepal Industry Co (Ndou and Obi
2013, p.160). In China boost juice adopt unique strategy which focus on offer healthy life style
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INTERNATIONAL MARKETING 5
in China because obesity and overweight has become one of the main concern on the global level
especially in Children. People are not looking for those food products which can offer them
healthy life style.
Factor conditions
China is offer positive political and economic support factors for prosper of fruit juice industry.
Growing middle class population adds another advantage factor for the progress of Boost juice in
China. Current boost juice is selling around one million juice product in China
Demand condition
At present, China market is the largest consumer of fruits with almost7.62 billion worth fruits on
the annual base (Eskandari et al. 2015, p.185). This situation is offering Coalbetter opportunities
to boost juice to reposition their product by connect it with health and youth section of China.
Related and support industries
At present local Fruit retail companies are free to offer their support to foreign companies in
order to boost this business. Local company helps foreign company to adjust their product as per
the demand of local market in terms of flavor, preference related to fruits and so on.
Government
At present China government is offering free trade agreement in order to boost trade business.
Boost juice must restructure its strategy in the form of partnership with subway and Gloria jean`s
coffee in order to get cultural support.
Chance
Chance often creates an advantage for some companies and disadvantage for others. Chance may
be due to external forces or sometimes internal. In this situation, boost juice retail must explore
china domestic market in order to lower the risk associated with fruit retail business.
Porters five force model
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INTERNATIONAL MARKETING 6
(Source: Mindtool 2020)
Supplier power
Boost juice retail is having an upper hand on supplier because in China availability of supplier
are larger and this offer boost juice an opportunity to switch their supplier on the base of price
which offers benefit to them.
Buyer power
Just like suppliers there are various fruit juice companies such as Guangxi Nanning Viet Drink
Import & Export Trading, Zhongke Nature (Tianjin) Biotechnology Co, Hainan Nicepal Industry
CoChina which increase competition in China fruit juice market. In this situation, customers
have an upper hand on Boost juice. In order to handle this situation, boost juice must focus on
their pricing policies (Zhao et al. 2016, p.144).
Competitive rivalry
Fruit juice market in china is prospering and this has offered opportunity to various companies to
operate their business. Companies like Guangxi Nanning Viet Drink Import & Export Trading,
Zhongke Nature (Tianjin) Biotechnology Co, Hainan Nicepal Industry Co and so on are offer
great competition. In this situation, competition for boost juice will not be easy because they
have to compete with both local as well as international retail companies in china.
New entry
New entry will not be problem for boost juice retail because it is a very competitive market and it
will not be easy for new companies to enter in this market because they have to take risk related
to price as well as image in the market.
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INTERNATIONAL MARKETING 7
Substitutes
In China market, alternative fresh fruit juice is available in numbers such as soda, lemon water
and some tea products. Hence, Boost juice retail must connect their product with culture aspect
to promote their product by positioning it in the minds of potential customers.
Recommendation
In Australia, Boost juice retail is currently operating product strategy but their main focus must
be on pricing strategy in order to capture market because earlier their product cost was much
higher as compared to their competitors which was creating barrier in their success. In china
people are price sensitive and therefore, Boost juice must use same pricing strategy in order to
reposition their product in minds of youth population of China.
Conclusion
China market is one of the best opportunities to Boost juice retail to reposition their image in the
minds of potential customers by focusing consumer taste and preference. For promoting
company must make use both traditional and digital marketing as a source of advertising
medium. In addition boost juice retail must adopt pricing strategy as their unique competitive
strategy in China market.
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INTERNATIONAL MARKETING 8
References
B2U 2020, ‘Porter diamond mode: why some countries are competitive’, Business two you,
viewed 9 february 2020, < https://www.business-to-you.com/porter-diamond-model/)>
Chen, X., Gao, Z., House, L., Ge, J., Zong, C. and Gmitter, F 2016, ‘Opportunities for Western
food products in China: The case of orange juice demand’, Agribusiness, vol.32, no.3, pp.343-
362.
Cheong, Y., Kim, K. and Zheng, L 2010, ‘Advertising appeals as a reflection of culture: a cross-
cultural analysis of food advertising appeals in China and the US’, Asian Journal of
Communication, vol.20, no.1, pp.1-16.
Elepu, G., Nabisubi, J. and Sserunkuuma, D 2016, ‘Segmentation of processed fruit juice
consumers in Urban Uganda’, Business Management and Strategy, vol.7, no.1, pp.80-95.
Emery, C. and Tian, K.R 2010, ‘China compared with the US: Cultural differences and the
impacts on advertising appeals. International Journal of China Marketing, vol.1, no.1, pp.45-59.
Eskandari, M.J., Miri, M., Gholami, S. and Nia, S.R 2015, ‘Factors affecting the competitiveness
of the food industry by using porter's five forces model case study in Hamadan Province,
IRAN’, Journal of Asian Scientific Research, vol.5, no.4, pp.185-197.
Menzies, J.L. and Orr, S.C. (2014) Internationalization of boost juice to Malaysia. Asian Case
Research Journal, 18(01), pp.175-197.
Mindtool 2020, ‘Porter five force model’, viewed 9 february 2020,
<https://www.mindtools.com/pages/article/newTMC_08.htm)>.
Musungwini, S. and Zhou, T.G 2014, ‘An investigation of the role of product, place, promotion
and price (4Ps) in market basket analysis: a case study of retail shops in Gweru
Zimbabwe’, International Journal of Science and Research, vol.3, no.2, pp.132-135.
Ndou, P. and Obi, A 2013, ‘An analysis of the competitiveness of the South African citrus
industry using the Constant Market Share and Porter's diamond model approaches’, International
Journal of Agricultural Management, vol.2, no.3, pp.160-169.
Shi, X. and Wang, J 2011, ‘Cultural distance between China and US across GLOBE model and
Hofstede model’, International Business and Management, vol.2, no.1, pp.11-17.
Zhang, T., Lusk, K., Mirosa, M. and Oey 2016, ‘Understanding young immigrant Chinese
consumers’ freshness perceptions of orange juices: A study based on concept evaluation’, Food
quality and preference, vol.48, no.11, pp.156-165.
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INTERNATIONAL MARKETING 9
Zhao, Z.Y., Zuo, J., Wu, P.H., Yan, H. and Zillante, G 2016, ‘Competitiveness assessment of the
biomass power generation industry in China: A five forces model study’, Renewable
energy, vol.89, no.16, pp.144-153.
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