DBN505 - Marketing Report: Strategy for Better Drinks Company

This report assesses The Better Drinks Company's internal strengths and weaknesses, highlighting its product quality as a strength and marketing campaigns as a weakness. Opportunities in the Asian market are noted, along with threats from competitors. The report analyzes the industry's rapid growth and suggests a fruit-flavored energy drink launch. The marketing strategy emphasizes digital channels to reach a broad audience, with reasonably priced products. SWOT analysis, Porter’s Five Forces, marketing objectives, market segmentation, and the marketing mix are all evaluated to provide a comprehensive overview of the company's strategic position and potential for growth. The company aims to expand its market presence and attract health-conscious consumers through this new product launch.

MARKETING

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Executive Summary
New product development has been the key of success in most of the industries. This report
evaluates the internal strengths and weaknesses of The better Drinks Company. The strengths
of the company are its product quality and the weakness lies in its poor marketing campaign.
It has large amount of opportunity in Asian region and it has threats from growing
competitors in the industry. It also evaluates about the industry which is growing at much
faster speed. Company aims to launch its energy drink having flavours of different fruits. The
marketing strategy of the company must look towards using digital mediums so as to reach to
maximum possible customers. They are aiming to target people from every segment of the
society. Its marketing mix evaluation shows that products are available at reasonable prices.

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Contents
INTRODUCTION.....................................................................................................................................2
SWOT analysis......................................................................................................................................3
Porter’s five force analysis....................................................................................................................5
New Product..........................................................................................................................................6
Marketing objectives.............................................................................................................................6
Marketing strategy.................................................................................................................................6
Market segment and target strategy.......................................................................................................7
Positioning strategy...............................................................................................................................8
Marketing Mix.......................................................................................................................................8
Conclusion.............................................................................................................................................9
REFERENCES......................................................................................................................................9
INTRODUCTION
Drinks industry has grown at much faster speed when compared with any other food industry.
The Better Drinks Co Limited is dealing in the business of manufacturing and marketing of

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drinks. It product range consists of juices such as orange juices, apple, grapefruit, raspberry,
cranberry, lemon sodas, mango, black current, water and superfood. These drinks are
available in all the parts of the world. Company was established in the year 1999 (Better
Drinks, 2018). It is a firm from New Zealand and working as a subsidiary of Asahi Holding.
Three friends launched this company named Simon Neal, Marc Ellis and Stefan Lepionka.
The working name of the company is Charlie’s Group Limited. In the start company was only
in the business of selling Orange juices later it expanded to other product range in the year
2001. The Vision of the company is to spread little good all around the world by the help of
great tasting juices from high quality stuffs. Its mission statements suggest that company will
become one of the best organisations that deal in the business of Drinks.
SWOT analysis
It is an analysis that suggests about the strengths and weaknesses of the company alongside
with the threats and opportunities available in front of the company.
Strengths
 Company has wide varieties of products available with the firm. This helps them in
gaining the attention of people that loves fruit juices from different sections of the
society.
 They have their own farms from where they avail their raw materials from hence
maintain the quality of their products.
 Utilisation of advanced technology has been their priority and currently they have
moved towards automation that helps in fast and accurate manufacturing and
processing of the juices.
 They maintain a high nutritional value in their products which helps them in new
market in an appropriate manner. This is the reason that they have a huge fan base in
certain areas (Bloomberg, 2018).
 Their strategies related to gaining competitive advantage over the rivals have helped
them in reaching to larger numbers of customers at minimum cost.
Weaknesses

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 Outside the Australian sub-continent company has a poor brand image. This is an
issue for the company as the population in this region is also less hence improving the
sales margin could be a problem for the company.
 They do not have any effective marketing campaign hence their advertisements is not
so much appealing. This is the place where they lag behind their competitors.
 Company is not using the online mediums for selling their products at higher levels.
This reduces the chances of sales.
 Company’s distribution channel is also limited hence restricting its capacity to
increase their maximum numbers of customers.
Opportunities
 Company has huge amount of opportunities outside New Zealand especially in the
Asian Region. The major benefit of increasing the business in this region is that there
is no monopoly of any company in this region. This region has highly dense cities
hence company can extend their market share but they will have to add large numbers
of distributors in their group.
 This firm can begin selling its products through online mediums. It is seen that
purchasing behaviour of people have changed and they prefer to buy products through
online sites rather than going in the stores and purchasing products.
 This company can add more numbers of partners in the new market so as to increase
their capabilities in dealing with the business of food and beverages. There are larger
numbers of small scale fruit Juice Company have emerged in different parts of the
world which can be added by the company in their pool of suppliers.
Threats
 The competition in the industry had gone to the cut-throat level. Both small and big
scale competitors are coming up in different regions of the world. This is increasing
the expansion chances of the company.
 Global economy is facing many types of crisis and which has reduced the purchasing
power of people has removed and hence Juices like products are not highly
welcomed.
 There is a change in the global environment conditions and hence has degraded the
production of the fruits. The quality and quantity of the fruits have also been reduced
hence availability of higher quality raw materials is also reduced.

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Porter’s five force analysis
For analysing the internal situation of the company there are certain factors that need to be
analysed. It is seen that fruit juice industry is gaining higher profits but the competition in the
industry has reduced the market share of various companies. Some of the factors that need to
be analysed are:
 Bargaining power of buyers: Due to presence of large amount of companies in the
industry, it is seen that bargaining power of customers are increasing as the options
available to them are also large. There are many small companies that are offering
products of high quality at lower cost. The freshness is also maintained within the
organisation. With the supplier from Asian region, it is seen that companies are
availing high quality raw materials at lower cost. This is enabling the firms to reduce
their prices and hence benefitting customers.
 Bargaining power of suppliers: There are large amount of suppliers that are available
with the company. Many small scale farmers are also forming a cooperative where
they are selling their raw materials to the company (Ferreira, Morabito & Rangel,
2010). This increase in the supplier base has reduced their bargaining power. It is also
seen that The Better Drinks Company is producing their own fruits and hence the
bargaining power of suppliers is further reduced. Overall the suppliers and the
company have good relationship with each other.
 Threat of new entrants: Since the investments in setting up the production unit are
moderate hence the more investors are trying to indulge their money in these
industries. It is also found that companies of both small and large scale are emerging
in different parts of the world. The margins of profits are also going to attract
investors. Taking the assistance of internet mediums these companies could increase
their sale. On the other side the competition is very high and there are many big
brands in the industry hence this threat remains on the moderate side.
 Threat of competition: With large numbers of competitors available in the market, the
threat of competition has gone to cut-throat level. In such a high amount of
competitive market The Better Drinks Company had to make plans for succeeding in
the market. Many big companies have adopted the cost reduction strategy hence they
have reduced the prices of their products. This has raised the threat of competition to
much higher levels.

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 Threat of substitution: Threat of substitution is on the higher side as there are many
products available in the market. There are fruit meals that are available in the
industry. Company will have to increase their product range so that companies do not
reduce them. Innovation in the drink industry has further increased the chances of
substitution.
New Product
Company is following the strategy of new product development and following this strategy
company is aiming to bring new products in different drinks segments. It is suggested that
company brings a high quality energy drink that is having flavours of different fruits. This
product is available in all sizes and all the prices. Company must utilise cans for selling their
products. The new products must be capable of checking several health issues. These
products must be made of fresh fruits and should have longer lifetime before it gets expired.
Marketing objectives
For any company, it is essential to define marketing objectives before actually doing the
marketing. The objectives for the new product of The Better Drinks Company are:
 The Better Drinks Company is aiming to increase the market base of the firm in new
countries with the help of this new product. This is attached with increasing the
revenue and profit share of the company.
 Company aims to create a new kind of market for itself where they will attract people
that are health conscious or are sports freak (Harris, J. L., & Munsell, 2015).
 Company aims to increase the sale of the company through technological mediums
and hence doing marketing through this medium only.
Marketing strategy
In the current marketing environment, it has become essential for the company to make sure
that their marketing strategies are in the manner that improves their market share. In
achieving marketing objectives the role of the marketing strategy is very much essential. The
better the marketing strategy made by the company, the better is the chance of achieving the
marketing objectives.

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Market segment and target strategy
In any marketing strategy, it is essential to know that for which target segment they are
making these strategies (Ramanathan & Muyldermans, 2010). Market segments must be
chosen appropriately so as to ensure that firm do not have problems in making strategies that
are effective and has the capacity to attract that particular market segment. The segmentation
and targeting must be done in an appropriate manner so as to ensure that marketing campaign
can achieve greater success. Energy drink market is expanding and people from every section
of the society are demanding of such kind of products that is having different fruit flavours.
There is a huge scope of targeting large amount of people with the help of this product.
Pricing of these products have also been kept on the competitive side and is lower than its
competitors. Some of the strategies that have been used by the company on the basis of some
variables are:
 Geography: Organisation is planning to target people from different parts of the world
from both regional and worldwide level. Company is following both globalised and
localised strategy so as to target people in both the regions. The localised strategy is
used in terms of the parameters like supply chain management and pricing. On the
other hand globalised strategy is used in the areas such as quality and marketing.
Company is also planning to do their business in both Urban and rural areas.
 Demographics: Company is targeting people from all age groups. They are targeting
people that are both married and bachelors. Company is producing products for all the
three incomes groups’ i.e. higher, middle and low income people. Products are
available for both men and women from different occupational group including
students, professionals and employees. Since the crazes of energy drinks are higher in
youngsters hence company has also targeted this segment only.
 Behavioural: In term of behaviour, company has segmented their target market
accordingly and accurately. In terms of loyalty, company is targeting people that are
both loyal to the company and are switchers. Company is also aiming to attract people
that are seeking cost benefits from the products. In personality traits company is
segmenting people of both the types that is easy going and careless. Company has
used strategies such as offers and lower prices so as to attract these people.
 Psychographic: In terms of Psychographic behaviour firm is focusing on individuals
that belong from different social class i.e. lower, middle and working class people.
Company has targeted people that are either taking care about their health or the

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people that is facing certain kind fatigue conditions. Company is aiming to target both
mainstream people and strugglers. These individuals are from different kinds of
cultures. People who are sport freaks or loves drinking energy drinks are also targeted
by the firm. With the help of strategies such as branding and image building, company
can attract these people also.
Positioning strategy
In any marketing the role of the positioning is very much essential. This company has
positioned itself as a company that provides unique taste in the energy drinks at competitive
prices. Their strategy is to place themselves as a very different company when compared with
all their competitors.
Marketing Mix
This is strategic marketing tool that helps in strengthening the marketing strategy. The
marketing mix for The Better Drinks Company is as follows:
 Product: Their new product is an energy drink that is having flavours of different
fruits. The products are of higher quality and contain the ingredients from fresh fruits.
The products are available in all sizes and have competitive prices.
 Prices: The prices of the products have been kept on the lower side. This might differ
slightly according to taxation and the competitiveness in market but still the
reasonable prices in the products have been maintained.
 Place: Company is aiming to sell its products through both tradition methods such as
stores and big shops and at the same time they are planning to sell their products
through online mediums. The online shopping will only be available on the e-
commerce websites. The company also aims to open their own shops that are small
and provides all the products through it. These online mediums will also be used as a
source for collecting the feedbacks based on which they can improve their campaigns.
 Promotions: Company is planning to do its promotions through the help of both
traditional and modern day mediums. Marketing must be done in a manner that it is
able to reach to maximum possible customers. Company must take use of the social
media as there are large numbers of youngsters who are using this medium. This will
also play a role of acting as a medium that improves their word of mouth campaign.

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Company must also take the help of Television and Newspaper for improving the
marketing campaign in the local market.
Conclusion
A conclusion can be drawn from the report that The Better Drinks Company is one of the best
companies that deals in the business of selling different types of Fruit Juices. The internal
environment of the company is good but needs to work on their strategies. Bargaining power
of customers is on the higher side, bargaining power of suppliers is on the lower side. Threat
of new entrants, substitution and competition is one the higher side. Company aims to launch
energy drinks having different fruits taste. Company is targeting people from all segments of
the society at global levels and company must focus on digital strategies so as to make the
business successful.

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REFERENCES
Better Drinks, 2018. Welcome to the Better Drinks Co. Retrieved from:
https://betterdrinks.co.nz/#
Bloomberg, 2018. Company Overview of The Better Drinks Co Limited. Retrieved from:
https://www.bloomberg.com/research/stocks/private/snapshot.asp?
privcapid=23775549
Ferreira, D., Morabito, R., & Rangel, S. (2010). Relax and fix heuristics to solve one-stage
one-machine lot-scheduling models for small-scale soft drink plants. Computers &
Operations Research, 37(4), 684-691.
Harris, J. L., & Munsell, C. R. (2015). Energy drinks and adolescents: what’s the
harm?. Nutrition reviews, 73(4), 247-257.
Ramanathan, U., & Muyldermans, L. (2010). Identifying demand factors for promotional
planning and forecasting: A case of a soft drink company in the UK. International
Journal of Production Economics, 128(2), 538-545.