BUS302 - Business Plan: Feel Good Beverages Australian Market Entry

This report outlines a business plan for Feel Good Beverages' market entry into Australia with its new energy drink, Total-e-Tea. The plan includes a market analysis highlighting the active energy drink market in Australia, particularly among students and young professionals, and details the product offering, which features low sugar and carb content in flavors like mint, lime, and spicy. The report also addresses the competitive landscape, identifies the primary target market (16-34 year olds), and presents a marketing strategy encompassing product, price, place, and promotion, alongside a financial plan and risk assessment. The company's mission focuses on consumer-centric product development with moderate pricing and aims to achieve transparency and fairness towards the communities they serve. The analysis considers industry standards, competition from brands like Coca-Cola and local brands, and opportunities presented by the growing energy drink market and health concerns regarding sugar content. Desklib provides students access to a wealth of resources, including similar business plans and solved assignments, to aid in their studies.

Running head: MARKETING
Marketing
Student’s Name
University Name
Author’s Note

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Table of Contents
1. Background (to the idea)........................................................................................................3
2. Mission...................................................................................................................................3
3. Product (Service) offering......................................................................................................4
4. Market analysis......................................................................................................................4
4.1 Industry analysis...............................................................................................................4
4.2 Competition......................................................................................................................6
5. Primary Target market........................................................................................................6
6. Marketing...............................................................................................................................8
6.1 Product..............................................................................................................................8
6.2 Price..................................................................................................................................8
6.3 Place.................................................................................................................................8
6.4 Promotion.........................................................................................................................9
6.5 Distribution.......................................................................................................................9
8. Financial plan.......................................................................................................................10
9. Critical risks.........................................................................................................................11
Reference List..........................................................................................................................13
Appendices...............................................................................................................................16

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1. Background (to the idea)
Research and innovation are important part of an organisation that leads to product
innovation and new product development. In the year 2018, Feel Good beverages developed
a formulated a new product that is an energy drink. In this report, an elaborate discussion will
be made regarding the launch of the new product in the local market of Australia. This report
will highlight that the market for energy drinks is quite active in Australia. Communities
ranging from young students, athletes, servicemen to elderly people, all consume energy
drinks in the country. However, this category of product is specifically in vogue among the
students and young professionals. With presence of negligible sugar and zero level carbs, this
drink is specifically designed to keep the consumers active. The mostly available flavours of
energy drink in Australia are blackcurrant, mandarin, crisp apple or raspberry (Rich 2018).
However, this product is designated as an ice tea range, that will in turn come in flavours like
mint, lime and spicy. This report will analyse the intrinsic market factors of Australia to
evaluate the success proximity of the product in the local market. The level of competition
that it will face from the remaining market players will also be analysed here. The main
segment of customers for this product will also be ascertained in the course of this report.
Lastly, a market situation analysis inclusive of aspects like pricing, distribution, promotion
and an apprehended financial plan will be discussed in the course of this report. The risks of
market entry have also included in the market analysis for the market entry of the new
product in Australia.
2. Mission
The mission of the company is to develop consumer based products, understanding
the real market needs of the consumers. The products of Feel Good Beverages are priced
moderately so that people of all communities can consume them at will. The organisation is

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also bent at providing the best financial returns to the investors and ensuring maximum
chance of growth for the employees (McNeill and Shrapnel 2015). Over all other aspect,
there is the honesty, transparency and fairness towards the communities they serve.
3. Product (Service) offering
The research and development team of the company has researched that the product,
that is Total-e-Tea is a highly active product that works 16% faster and better than the other
common product of the same genre in the market. Although, it is estimated that people of all
age groups will consume it, the main target market of the product consists of consumers aged
between 16 to 34 years (Chepulis et al. 2018). Keeping this category in mind, the product
have been made colourfully designed with bright and stark colours. The Total-e-Tea comes in
plastic bottles of 600 ml and 750 ml. a flip and flow cap is used for locking the bottles. The
body of the bottle is curved with finger like grooves and the name strip is of a fusion colour
of lush green and sea blue. The drink comes in the typical tea colour. In order to differentiate
the three flavours, the colour of the bottle caps are made different and the logo is also made
slightly different for each of the three varieties. The caffeine content of the drinks is less than
2%. The main energy rich components of the drink are guarana, taurine and Ginseng. There
are added minerals and vitamins also. There is also presence of 12% of fresh flush tea liquor
that gives the product a freshness and slightly aromatic zeal. The sweetness of the product is
moderate with the spicy variety being slightly tangy and hot. The 600 ml bottles are priced at
AUD $2.14 and the 750 ml bottles are priced at AUD $3.00.
4. Market analysis
4.1 Industry analysis
Australia has a market reputation of advocating clean natural products that do not
spread high chemical residues. As Shum, Woo and Lee (2018), states, the safety standard

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regulations abide that all beverage should pass the standard of the Food safety and standard
authority of Australia. Bureaucracy as well as interference level of the government in the
industry is also low, which implies a large amount of industrial freedom is available for Feel
Good Beverages in the local market. The taxation rate is also lower as this product contain
0% alcohol. However import duty is to be imposed as the company will be following a direct
import strategy in the initial phase of the market entry.
The healthy quality of foods will automatically give challenge to the market of
alterative food in the market (Chen et al. 2015). However, with the lower pricing strategy the
company will be able to handle this issue. Again, food interests rates, taxation rate and
fluctuation in the consumer spending rate might affect the business of the company in the
local markets of Australia.
Next in consideration are the social factors that might influence the operations of the
company. The first factor in favour of Total-e-Tea is that majority of the Australian people
consume energy drinks. Again, there are not much variation in the category of the energy
drinks. That is a why, Pollard et al. (2016) opines that an ice tea flavoured drink is supposed
to gain favour among the highly enticed Australian market. Another factor is the branding
look, which impacts the consumption taste of majority of the Australians. In order to make
this factor in their favour, the company is keeping the packaging classy and in alignment
keeping the prices competitive also.
There are several modern technological aspects also, that might affect the business.
The company is one among the initial companies who have adopted the flow through
sortation technology. The company is bringing the distribution centre sorted as well as staged
in order to facilitate the process of restocking. This is going to facilitate the procedure of
sales promoting through mobile trucks (Ma et al. 2016). After the market entry in to

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Australia, the company is going to foster sales through ecommerce immediately, alongside
physical store sales activities.
4.2 Competition
In the market of carbonated soft drinks, Pepsi-Co as well as Coca Cola have been
holding the major segment of the customers. However, the market for energy drinks has
recently emerged in the Australian market. The market component for the energy drinks
market is developing at a rate of CAGR 3.4% over the latest 5 years. Other than these brands,
Australia is also supposed to face competition from the local brands like Lemon as well as
Paeroa. As per Zeng and Szolnoki (2017), the Indonesian brand Big Cola also has acquisition
over 14% of the market approximately.
There are however some intrinsic product qualities that is going to give the product a
competitive edge to the market. The sugar content in the product is extremely low that gives
the product a special competitive edge. The same advantage is gained by the product owing
to the low caffeine content. These two components are mostly harmful for the people in
Australia as the rate of obesity in Australia is extremely high.
5. Primary Target market
The primary target market of the company would be the customers who are the
between the age of 16 to 24. Their activist needs in the community are the highest and thus
they need the product, the most. The negative impacts of this product up on their health is
also the least. The second target category of customers is the age group between 20 to 36
years consisting of the professionals. There is high need of immediate energy by this group
and thus this is an ideal product for them. As estimated by Ragusa and Crampton (2016),
about 60% of the individuals aged between 12 to 24 years consume energy drink at least
twice in every seven days. The percentage of consumers was about 49% in the year 2013.

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The aggravation in the rate shows that this category is the prolific for being targeted by the
Feel Good Beverage Company for the promotion of the Total-e-Tea product.
On the contrary, the consumption rate of the age group between 25 to 34 years has
diminished considerably. This group has reduced consumption of soft drinks by 30% at least.
As analysed by Kristina and Wijaya (2017), the lack of variation in the taste and lack of
effectiveness in the energy drinks compounded by the upsurge of the price of the product has
been the reason behind this. In spite of an antipodal trend of the consumer section, this
segment is important for the product. They will get the variation in taste and the price id also
competitive for the product, the sugar content is low and all these suffices the needs of this
category of the customers.

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Graph 1: Consumption proportion of beverages in Australia, age wise
(Source: Fan et al. 2016)
The consumption rate of demographic category aged over 50 is less zealous about the
consumption of energy drinks and their consumption rate remains stable at 40%. Hence the
toughest market completion would be in order to acquire customers of this demographic
section since their brand loyalty is of the maximum level.
6. Marketing
6.1 Product
The major products of the company that are going to be developed for the Australian
market are Ice tea flavoured energy drinks that comes in the three flavours of lemon, mint
and spicy. These products have almost zero sugar content and the carb level of the product is
also very low. There is variety in the packaging and size of the bottles of coca cola. There are
varieties like 600 ml bottle and 750 ml bottle. The product is budget friendly and as supposed
by analysing the product features, the market acquisition rate of the product is going to be
very high.
6.2 Price
The company is going to follow a second degree price discriminating policy. They are
going to offer cashback to different customers of different consumption level. The beverage
market in Australia is still oligopolistic and as such there is supposed to be large scope of
market expansion in the new market (Chetty, Ojala and Leppäaho 2015). The company has to
keep the prices of the products, initially lower than the MNC brand products like Coca Cola
or Fanta or Minute Maid in order to develop a competitive market manipulation strategy.
6.3 Place

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The distribution network of the company is quite small. However, promotional selling
of the product is going to be the best strategy for promotion of the product in the Australian
market. In order to promote the product, the students of school and college level is going to
be provided the product at 50% discount for the initial six months (Hawthorne 2016).
Besides, free samples of the product amounting to 200 ml each pack is going to be distributed
in selected areas of the urban parts of Australia.
6.4 Promotion
The strategy of promotion that the company should adopt is of aggressive marketing
through the use of TV advertising, online advertisement’s, sponsorships and so on. The local
market endorsement strategy is also to be undertaken by the company and activities like free
sample distribution, sale at a discounted price and others have to be undertaken. Frequent
telecasting is to be done by the company for the brand awareness also. They also needs to
promote the exclusive nature of their products and delineate what kind of benefits, the
customers can enjoy as an outcome of using the using the product.
Push sales strategies can also be used for the sales promotion of Total-e-Tea by the
company. The main target, in this context, as Sinha et al. (2015), states, is to achieve shelf
space and push the brand towards final customers. Typical promotional sales strategies that
can be employed in this context are assured buy backs, free trials, discounts, displays, as well
as window contests.
6.5 Distribution
The offline market distribution strategies have been discussed in detail in the scope of
this report. However, in this section, a detailed discussion of the online marketing strategies
of the product will be done. The ecommerce is making up for only 2% of the purchases made
online in Australia currently. However, Stoian, Rialp and Dimitratos (2017), upholds that the

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figure would go up by 16% by the end of 2025. The organisation is partnering with the
restaurant chains that are in turn teamed up with the online food delivery applications. Their
online listed products would show combos with various flavours of Total-e-Tea. They are
also promoting their discount offers through online marketing applications where combo
offers of Total-e-Tea are posted.
They are also collaborating with the various corporate companies where they are
installing beverage vending machines. These are the chief promotional strategies that are
used by the Feel Good Beverage Company for the promotion of Total-e-Tea.
Since the product is a fast consuming commodity, the presence and the impact of the
distribution channels is going to be a highly influential factor for the sales of the company.
After the global boost of internet, the traditional retail distribution platform have been
somewhat intimidated by online channels as well as franchised partnering. In order to cut
cost, the company can initially employ only few wholesale partners (Müllner 2016). The
other devices like supply trucks around the important cities, implantation of vending
machines in schools and colleges as well as corporate offices and others are well enough for
developing the market demand. However, in such a condition, the warehousing and retail
management have to be handled by the intrinsic staff of Feel Good Beverages in Australia,
other than vending machines, other retail ports that the company can use in this regard are
convenience stores (first priority) supermarkets, drug stores, and grocery stores and so on
(Hohenthal, Johanson and Johanson 2015). Another group of second level retailing agency is
to be contracted by the company which will handle the operations like promotional counter
sales in important locations of the country.
(Including a 1 page mock-up of a proposed advertisement)
8. Financial plan

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For the operations of the first financial year, the funding valuation is supposed to be
$100,000.00. An assumed funds of $100,000.00 is also projected in the financial budget of
the first financial year of the company.
Sources of Capital
Owners' Investment (name & % ownership)
Your name & % ownership $ 60,00,000
Other Investor 25,000
Other Investor 2,500
Other Investor -
Total Investment $ 60,27,500
Bank Loans
Bank 1 $ 13,500
Bank 2 8,500
Bank 3 -
Bank 4 -
Total Bank Loans $ 22,000
Other Loans
Source 1 $ 11,700
Source 2 6,300
Total Other Loans $ 18,000
Sources of Capital
Other budgetary segments are attached in the Appendix.
9. Critical risks
There are various categories of risks, related to the development of a new product for
an absolutely new market. A general risk is the proximity of the change of laws and
regulations related to revenue and taxes. Then there are laws on the limits up on pollution.
The labour laws of the country are also strict (Luo and Zhang 2016). One major risk for the
ccompany is the monetary risk. In case if the executives are not able to successfully monitor

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the promotional strategies, then this would lead to huge expense (often exceeding the
anticipated value) and the projected customer engagement would not happen also.
The lack of efficient management of Feel Good Beverage in the Australian circuit is
another factor that can be accountable for a high level of risk for the company. Besides, there
is high power distance between the employees appointed by the company and for this market
launch project, the distance is going to be graver.