MRKT20052 Marketing: Situational Analysis of Nexa Beverages

This report presents a situational analysis of Nexa Beverages, an Australian company founded in 2011 by health enthusiasts. The analysis covers the company's growth, driven by the increasing demand for low-sugar and healthy products, and its successful launch of sugar-free drinks. It examines the market size, highlighting the dominance of major players like Coca-Cola Amatil and Asahi Holdings, and discusses consumer buying behavior, influenced by health consciousness and willingness to pay for quality products. The environmental analysis includes political, economic, social, technological, and legal factors impacting the company. Despite economic challenges, consumer positivity and willingness to spend on lifestyle products, particularly among middle-aged Australians, contribute to the company's prospects.

Situational analysis of Nexa Beverages
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Slide 1: The aim of the assessment
The main aim of the assessment is used conduct the situational and environmental analysis on
Nexba Company which is situated in Australia.
Slide 2: Introduction
The company was founded by two health enthusiasts namely Drew Bilbe and Troy Douglas
and the company were launched in the year 2011 and since then the company is slowly
stealing consumers from the market leader like Nestea and many other brands.
Slide 3:
Despite all this, Nexba is gaining a lot of recognition and growth simply because of the facts
that it provides a product for health enthusiasts as well as the rise in the focus on low sugar
and diet products have further contributed in the growth of the industry.
Slide 4:
Nexba company has obviously seen consistent and strong development over a period of time
and the reason is primarily that the Australian Consumers are switching from carbonated
drinks to the healthier option which provides an opportunity to new product development by
important manufacturers. The study also suggests healthy drinks will become an every day or
a routine offering for many countries because of this reason (Friel et al, 2014).
Slide 5:
In 2017, the company launched natural and sugar-free drinks which become the product of
the year in the country on the basis of innovation in a product (Bigliardi & Galati, 2013). The
company has successfully gained a position in places like IGA and Coles and because of this
reason, the company is producing approx. three lakhs cans of existing product range each

month and further expects to make more two lakhs cans approx. for a new product like sugar-
free brew every month when they launch.
Slide 6:
A country like Australia value health and this is why there is a great demand for healthy
products. The consumers are also willing to pay any amount for such goods. Hence, Nexba is
effectively able to plan a better consumption for the customers. The consumers are also
accepting towards imported products since they get very few options locally.
Slide 7:
Market size
The soft drink production sector is highly or immensely concentrated in the current time and
some of the largest players are CCA also called Coca-Cola Amatil as well as Asahi Holdings
which are getting the majority of the industry revenue currently. Carbonated drinks have
clearly seen a declining revenue in past few years and there is also struggle with price
competition and fall in the sales and overall volume of carbonated beverages (Gunja &
Brown, 2012).
Buying Behaviour
A country like Australia value health and this is why there is a great demand for healthy
products. this is why consumers are also willing to pay any amount for such goods. The
consumers are also accepting towards imported products since they get very few options
locally. The decision to purchase is principally decided by the price factors in the country. In
addition, the rise in interest of people of Australia is in the quality with growth in the impact
of fashion element which is further fuelled by advertising and media which demands

authentic products as well as brand names and high range of products as well (Jones &
Morgan, 2014).
Slide 8:
 Environment analysis: It includes the promotion, distribution and the advertisements
which are done mainly to handle the products selling in a period with the proper
revenue which is generated and recorded depending upon the cost of publicity.
 Political: The standards are based on matching with the America customers who
focus on examining the strengths about the US soft drink. The American consumers
are holding certain ecological and the political information for the technological
growth.
 Economic: A country like Australia has characterised by the economy which is stable
by nature with the rising in inflows of FDI and a powerful demand on domestic front
which helps in providing a cushion to the current economy even in the time of major
crisis (Mytton et al, 2012). No matter what the performance on the economic front is,
the country is still facing issues related to disparity in income which can restrict the
economic growth in future.
 Social: The company is working on the different medium standards with focus on the
advertisements and handling the investment suitability in the market.
 Technological: The technological standards are based on determining about the
profits and the sales which are made with controlling the procedures. Here, the
profitability is important to highlight the US market and the marketing strategies.
 Legal: The legal factors helps in determining the employment laws, industry
regulations, health and safety factors etc.

Slide 9:
Conclusion
Despite all the reason that is impacting the economy in the recent time, consumers have
managed to remain very positive as shown by continuous development. Also, few customers
are further cutting majorly back on some non-important which is around twenty-five percent
of the customer which are not ready to spend less on the purchase of lifestyle products and
youth are not willing to spend money in comparison to middle age Australian people.