Boost Juice's Global Marketing Report: Strategies for the US Market

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This report analyzes the international marketing strategies for Boost Juice, an Australian retail company specializing in smoothies and juices, aiming to launch in the United States. The report begins by outlining the marketing techniques employed by Boost Juice in Australia, focusing on the marketing mix (product, price, promotion, place) and diversification strategies. It then discusses which of these techniques are applicable to the American market, considering the US as a short-term oriented culture. The report highlights cultural differences between Australia and America, influencing marketing decisions, and applies three key theories: Hofstede's communication theory, market segmentation theories (geographic, demographic, behavioral, and psychographic), and the marketing mix strategy. The report recommends focusing on product quality, strategic partnerships, and human resource development to ensure a successful launch in the American market. The conclusion emphasizes the importance of understanding the health-conscious customer base in the US and using appropriate marketing strategies to capture market share.
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Running head: International marketing
International marketing
2018
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Table of Contents
Introduction.................................................................................................................................................3
Marketing techniques used by Boost Juice in Australia...............................................................................3
Marketing techniques that would work in America.....................................................................................4
Culture differences in both the countries.....................................................................................................4
The three theories that can be applied..........................................................................................................5
Recommendations.......................................................................................................................................7
Conclusion...................................................................................................................................................7
References...................................................................................................................................................8
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Introduction
The primary motive of this paper is to discuss and outline marketing strategies that are adopted
by Boost Juice in Australia. The company has decided to launch its juices in America. For this
purpose, the company has to make innovative and dynamic strategies in America to stay in the
international market. Boost Juice is am retail Australian company that deals with enormous
health products like protein, smoothies, energy drinks and juices. The three theories including
segmentation, marketing mix and hofstede communication theory have been explained in the
task widely.
Boost Juice is an Australian retail outlet that mainly specializes in selling ample of smoothies
and fruit juice. Boost Juice was incorporated in 2000 with its headquartered is located in
Melbourne, Australia (Boostjuice, 2018). The company has expanded and explored its business
internationally with stores in South Africa, Europe, Asia, United Kingdom and India. The main
mission of Boost Juice is to provide healthy and tasty juices and smoothies to the customers
across the globe (Boostjuice, 2018).
Marketing techniques used by Boost Juice in Australia
It is analyzed after the various studies that Boost juice uses innovative and unique market
techniques to compete with rivalries globally. Boost Juice has been able to uplift its profitability
and outcomes in Australia by using innovative marketing techniques. The company uses
marketing mix strategy that covers 4Ps such as product, price, promotion and place. Product
strategy is essential to manufacture and introduce new and healthy products globally. In pricing,
the firm uses low cost pricing strategy to earn maximum profit margin. Aside this, place strategy
is initiated by the corporation to provide fresh and tasty juice to the customers. Besides this,
Boost Juice invest huge amount into the advertising and marketing strategy to encourage its
products and services. This strategy helps in making a dynamic and unique brand position in the
minds of the key target audience. Along with this, the firm also uses porter business level
strategies to compete and strive with rivalries internationally. It is reported that Boost juice also
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uses diversification strategy in Australia to build and improve the quality of the products. With
diversification strategy, Boost Juice could able to differentiate its juices over the rivalries in the
competitive market (Daneshi et al, 2013).
Marketing techniques that would work in America
It states that America is well known as the United States, is a nation comprised of 50 states, five
unique self governing territories, a federal district and several possessions. The U.S is a short
term oriented culture that helps in attaining competitive benefits over the rivalries. It is
elucidated that various marketing techniques or methods can be used by Boot Juice in America
for flourishing the business functions and activities. Firstly, the company would pestle analysis
to understand and evaluate the market scenario of Juice in America. It is one of the fundamental
strategies that could be used to eliminate and minimize the risks and challenges of the foreign
market. Along with this, it is reported that the company can use SWOT analysis to identify and
measure the opportunities and threats of competitive market. The company’s strengths and
weaknesses further would be evaluated with SWOT analysis. Boost Juice would further use
corporate diversification strategy to improve and enhance opportunities for profitability and
growth in America. An effective and successful business strategy will help maximize revenue
and sales as well as market share globally. Apart from this, market penetration strategy helps in
capturing entire key target audience in America. Thus, Boost Juice will use market penetration
strategy to attain growth and progress with existing products in their current market segments,
aiming to maximize and enhance its market share. One of the vital strategies that might be used
by the firm is product development strategy, Boost Juice can able to develop and enhance
various types of juices in the United States. All these strategies would become a good option
while exploring and initiating business in America (Khan et al, 2013).
Culture differences in both the countries
Various studies reported that Australian and American culture is scarce and limited therefore,
ample of culture differences issues are faced by Boost Juice in both the countries. The culture of
Australia is more unique and powerful than America that helps in boosting market share and
profitability. The Australians are more water conscious rather than Americans are. It is measured
that Australians utilize their cutlery quite differently from United States (Crichlow, 2013). The
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retail sector is more strong and effective in Australia than America. It is measured that Aussies
entrusted in the rules and principles of a welfare state where it is not done by United States.
Unions and labor unions are stronger and dynamic in Australia than America. It has been found
that politics is more effective and diverse in Australia as compared to America. Thus, Boost
Juice is able to meet the long term needs and requirements of the business. Australia has a very
high minimum wage which is highest across the globe. On the other hand, Land is not too much
expensive in the United States. It is noted that Australia was strongly and politically tied to the
United Kingdom but could not break the politically such as USA. The culture of U.S. is highly
influenced or affected by the politics of Australia. The community in Australia is more
egalitarian and equal than U.S. Thus, various challenges can be faced by Boost Juice while
exploring business in America (Parry and Urwin, 2011).
The three theories that can be applied
It is stated that the company may apply three theories while conducting business in America that
have been discussed below.
Hofstede’s communication theory: It shall be evaluated that Hofstede’s cultural dimensions
theory is a structure and tool for cross cultural communication that is built or propounded by
Geert Hofstede. The six dimensions theories for Australia and US have been discussed below.
Power distance: Australian has low ranked 36 in this dimension while America has 40 ranked in
this dimension (Hofstedeinsights, 2018). It means Americans are more equal and unique. It will
help Boost Juice to gain rivalries benefits.
Individualism vs. collectivism: Australia has got 90th ranked on this dimension that means it is a
highly and effectively individualistic culture and society where as America has tanked 91 in this
dimension. It means also follows individualistic society as compared to Australia
(Hofstedeinsights, 2018).
Masculinity: Australian country scores 61 in this dimension (Hofstedeinsights, 2018) and it is
considered a masculine community which help in attaining rivalries benefits. On the other hand,
U.S. also pays much and high attention on achievement, growth and competition.
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Uncertainty avoidance: Australia got 51 scored on this dimension whereas America scores 46
in this dimension (Wordpress, 2013). It means American culture and values are not open to
accept new situation or circumstances.
Long term orientation vs. short term orientation: Australia has a normative and unique
culture thus the country has scored 21 in this dimension (Bartleby, 2013). In the contrary,
American has 29 scored in this dimension that means America and Australia both are not much
better than other countries (Wordpress, 2013).
Indulgence: In this dimension, Australia has scored 71 that means people in communities
categorized by a high and excellent score in indulgence that America (Hofstedeinsights, 2018).
Market segmentation theories: It is one of the significant theories that can be applied by Boots
Juice in America to attract wide range of customers across the globe. Segmentation is a process
or tool to divided entire target audience into the different units (Furnham and Gunter, 2008). The
segmentation is done by Boost Juice after considering the four areas such as geographic,
demographic, behavioral and psychographic areas. Under geographic segmentation, the company
would focus on the preferences, choices, and needs of the youngsters and kids in America. The
demographic segmentation includes nationality, age, gender, occupation and race. Behavioral
factors such as lifestyle, consumption and usage are included in the behavioral segmentation
which help in targeting ample of customers in the international market. The psychographic
segmentation entails personality traits, opinions and values which help in maximizing returns
and revenue in America. The company can use this strategy to promote a healthier lifestyle in the
country. The majority of key target audience prefers fresh juices and further 60% of the
consumers are females (Baker and Saren, 2016).
Marketing mix strategy: The marketing mix helps in building and improving marketing
strategies through the 4Ps: product, price, place and promotion. The marketing mix strategy for
Boost Juice has been discussed below.
Product: It is stated that the company has introduced new and innovative products such as
protein juices, fruit juice bars and energy boosters to satisfy and measure the needs and desires of
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the customers. This strategy is essential to stand out against the competitors internationally
(Morgan, 2012).
Price: It is noted that the company can use low cost pricing strategy to increase and enhance the
sale of fruit juices in America.
Place: In order to render fresh and healthy products, the company needs to open its stores across
the nation. The firm further operates and manages on a franchising model system.
Promotion: It is reported that the company has invested huge money on the promotional and
advertising strategies to promote and improve its products and services globally (Aaker and Biel,
2013).
Recommendations
It is recommended that Boost Juice should focus on the quality and quantity of the products that
have been offered by them. The company must tie up with other sports companies or adventure
organizations to encourage its juices and other products. To expand business in America, the
company must implement partnerships with other health products organizations. The firm further
should focus on developing and improving its human resources to compete with other companies
and to launch Juices in America smoothly and effectively. In this way, the organization can
easily flourish and explore its business actions in America.
Conclusion
To conclude, it is elucidated that Boost Juice focuses on the marketing strategies and niche
market in America to capture health conscious customers. Here is the discussion about the
marketing techniques that can be applied by the company in America in order to initiate business
in such country. The above analysis indicates that how the firm uses communication strategies,
marketing mix and segmentation strategies to implement new business functions in America.
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References
Aaker, D.A. and Biel, A.L., 2013. Brand equity & advertising: advertising's role in building
strong brands. Psychology Press.
Baker, M.J. and Saren, M. eds., 2016. Marketing theory: a student text. Sage.
Bartleby.2013. Hofstede’s cultural dimensions US vs. India essay [Online]. Available from
https://www.bartleby.com/essay/Hofstedes-Cultural-Dimensions-Us-vs-India-FKCRW8EKVJ
[Accessed as on 2nd October 2018].
Boostjuice.2018. About us[Online]. Available from https://www.boostjuice.com.au/about-boost-
juice/ [Accessed as on 2nd October 2018].
Crichlow, W. ed., 2013. Race, identity, and representation in education. Routledge.
Daneshi, M., Ehsani, M.R., Razavi, S.H. and Labbafi, M., 2013. Effect of refrigerated storage on
the probiotic survival and sensory properties of milk/carrot juice mix drink. Electronic Journal of
Biotechnology, 16(5), pp.5-5.
Furnham, A. and Gunter, B., 2008. Children as consumers: A psychological analysis of the
young people's market. Routledge.
Hofstedeinsights.2018. Country Comparison [Online]. Available from https://www.hofstede-
insights.com/country-comparison/australia,the-usa/ [Accessed as on 2nd October 2018].
Khan, R.S., Grigor, J., Winger, R. and Win, A., 2013. Functional food product development–
Opportunities and challenges for food manufacturers. Trends in food science &
technology, 30(1), pp.27-37.
Morgan, N.A., 2012. Marketing and business performance. Journal of the Academy of Marketing
Science, 40(1), pp.102-119.
Parry, E. and Urwin, P., 2011. Generational differences in work values: A review of theory and
evidence. International journal of management reviews, 13(1), pp.79-96.
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Wordpress.2013, Hofstede’s five cultural dimensions between China and the USA[Online].
Available from https://zhel2013.wordpress.com/2013/03/25/hofstedes-five-cultural-dimensions-
between-china-and-the-usa/ [Accessed as on 2nd October 2018].
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