Comprehensive Situation Analysis of Nexas in the Beverage Industry

This report provides a comprehensive situation analysis of Nexas, an Australian beverage company specializing in sugar-free drinks. It examines Nexas's market position, competitive landscape, and target market, highlighting the challenges posed by established competitors like Coca-Cola. The report delves into market segmentation, including demographic, psychographic, behavioral, and geographic factors, to identify potential growth opportunities. It outlines the firm's marketing and financial objectives, strategies, and goals, including expanding into international markets. The analysis includes a detailed discussion of the marketing mix, implementation, and control measures. The report concludes with recommendations for Nexas to strengthen its market position, increase brand awareness, and achieve its financial objectives by adapting to changing consumer needs and the competitive environment.

Running head: SITUATION ANALYSIS OF NEXAS
Situation Analysis of Nexas
Name of the Student:
Name of the University:
Author Note:

1SITUATION ANALYSIS OF NEXAS
Executive Summary:
Nexa is one of the fastest growing firms in Australia operating in the beverages industry. It is the
very first firm in this sector that produces sugar free drinks and caters to the ever increasing
health need of the target consumer base. It has expanded in a very short span of time but is faced
with intense rivalry from its competitors and so needs to address challenges lying in this field
and expand to other regions of the world so that they do not lose out on target market. This paper
outlines the situation prevailing, the problem and the measures to be taken to come out of the
same.

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Table of Contents
Executive Summary:....................................................................................................................................1
Introduction.................................................................................................................................................3
Situation Analysis:.......................................................................................................................................3
Problem Statement:....................................................................................................................................4
Potential Market Segmentation:.................................................................................................................5
Target market position:...............................................................................................................................6
Target market segments:.............................................................................................................................7
Marketing Objectives and Goals:.................................................................................................................7
Financial objectives:....................................................................................................................................8
Marketing mix and marketing strategy:......................................................................................................9
Implementation and control:....................................................................................................................10
Conclusion:................................................................................................................................................10
References:................................................................................................................................................11

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Introduction
Nexba is one of the leading organizations operating in the beverages industry of Australia
and is trying to increasingly cover a larger section of the target market. It produces beverages
that are ready to drink and contain no amount of sugar and hence this differentiated this firm’s
products from the rest (Mhurchu et al., 2016). The firm was established by Troy Douglas and
Bilbe in the year 2010. This was the first firm to start producing sugar free beverages in Australia
and has hence been very differentiable from the rest of the firms operating in the same sector. It
has produced various types and flavors of drinks that has helped to cater to a lot of diverse
demands and needs of customers (Brand-Miller & Barclay, 2017). All over the country the
innovative and technologically advanced features of the firm has made it gain a high market rank
and hence operate smoothly and efficiently. This study and report will focus on the objectives
and situation analysis of the firm and also critically discuss and evaluate the marketing mix and
other measures taken up by the firm. Further the control measures and implementation of the
strategies will also be discussed in detail.
Situation Analysis:
The product that is mostly used and is one of the key ingredients of the beverages
manufactured by this firm is Erythritol which is used as a sweetener instead of sugar so that the
sweetness or the tastes of the beverages are not compromised with. This very defining feature of
the firm has made it different from all other firms operating in the beverages sector or industry in
Australia. It is the very same feature that makes the beverages and drinks produced by this firm
to be healthy and of better quality as compared to all the other products produced by the other

4SITUATION ANALYSIS OF NEXAS
firms (Kristina & Wijaya, 2017). Reports have increasingly asserted that the use of this
sweetener instead of sugar has helped reduce the occurrence of a lot of diseases like obesity,
diabetes and other cardiovascular diseases that happen due to over consumption of sugar
specially through the consumption of sweetened beverages. However, this firm has managed to
make sure none of its products have any amount of natural sugar and it has also introduced this
feature and implemented this within a very short period of time.
Problem Statement:
Nexas is one of the new entrants in the sector and hence suffers from immense and
tough competition from other competitors which have been there in the industry and have
been operating for a long period of time like Coca Cola who have also specialized a part of
their beverages and are now producing zero calorie products that do not have any natural
sugar content just like the beverages produced by Nexas.
The above statement can be further described in detail in the context that it has
effectively and efficiently managed to produce beverages which are customized and specialized
to have zero sugar content and are aimed at making the population of Australia healthier and
better. The firm has in fact managed to occupy a large portion of its target market in a very short
span of time (Hoare et al., 2017). It has extended to almost all parts of the country and has
gained a brand value and impetus equivalent to that of Coca Cola and Pepsi in a comparatively
way lesser amount of time. However with the increase in the specialization of the beverages
produced by these firms which also have a low sugar content and are customized for the same
customer group as that of Nexas, the firm is increasingly facing from all of these firms. This is
why it is very important and crucial for the firm to improve its strategies and amount of

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marketing and advertising. It also needs to work on the management and operational strategies so
that its position on the market is improved in the market and it can cater to the changing needs of
the consumers (Kim & Mauborgne, 2014). This is so because in the absence of effective
techniques that will help it to mitigate the risks of competition and help it recover from the loss
meted to it by the competitors, the company will end up incurring huge amounts of loss that
might een force the firm to eventually shut down.
Potential Market Segmentation:
The potential market or the target market for the firm can be differentiated and identified
with the help and use of the following parameters:
Demography: The products produced by this firm are sugar free and hence form very
good options of healthy beverages. Hence the positioning of the firm in the market will be such
that it will aim to target the middle to old aged population group who need to maintain the
situation of their health conditions. Further, it will also address that demography of population
which suffers from diseases like diabetes or high cholesterol levels. It will also be positioned in
such a way that the younger generations who are interested in healthy products also increasingly
buy this product.
Psychographic: This sectioning of the firm in the market is also in line with the above
mentioned lining of the firm wherein the firm will try to address the problems of the people
concerned with their health and well being and do not have many options to try form in the
current scenario of the market. One of the most important objectives of the firm in this aspect
will be to cater to the needs of people who have for so long not been able to drink beverages for
reasons of health but have always wanted to.

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Behavioral: The behavioral features of the consumers that will determine the positioning
of the firm in the market will also include the behaviors that instigate the consumers not only to
try out healthy products but also new brands and features in the usual beverages taste.
Geographic: As the firm has been able to expand all across the country and address the
needs of quite a huge proportion of the population residing in Australia, it will now have to think
of strategies that will help it to expand to other countries where greater section of the population
has the demographic, behavioral and psychographic features that are described above (Babor,
Robaina & Jernigan, 2015). The product will also be of a lot of use to the people of the countries
belonging to the equatorial region where there are a lot of issues related to the environment and
the weather and hence the product can be used as a source of energy also. The countries that
have a higher section of middle and old aged people should also essentially be targeted.
Target market position:
As mentioned earlier, as the firm needs now to expand to regions outside of Australia, it
should target to build and expand its market across regions that house countries where the heat
and weather form an important parameter in instigating people to drink beverages as a source of
energy. The firm will also aim to expand to countries where the population is highly conscious of
health and houses population which is majorly middle and old aged. It will also keep the income
parameters of the population in the countries that it wants to expand to as a parameter while
deciding where it wants to expand. Further, the firm will also try to target countries that are
reported to have a high section of the population that suffers from diseases like obesity, diabetes
and other cardio vascular diseases. Thus the company should focus on expanding to the countries

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that are located in the region near the equator and across the areas where the temperature is high
and it is comparatively humid as compared to other countries.
Target market segments:
Old Generation – This segment of the population is the one that needs to be focused on
the most as it suffers from the maximum amount of diseases and threats from the same. To
reduce the occurrence of those diseases and help the population in consuming beverages that
they have for long not been able to consume the beverages should be produced specifically and
marketed in a customized manner for this age group.
Young Generation- This is the generation that is highly conscious about their health and
is the most prone to buying these beverages as they are increasingly wanting to consume food
and drinks that help in maintaining a proper figure and also beverages that do not cause
accumulation of fat or other toxic elements in their body.
The Middle Aged Generation- This generation unlike the other two gamut of population
will increasingly try to either avoid or reduce the probability of the occurrence of major diseases
and hence will want to consume products that are healthy and do not contribute to fat or sugar
accumulation in the body. Thus the firm will also have to make sure that the needs and demands
of this group are also catered to through customization and specialization.
Marketing Objectives and Goals:
The marketing goals and objectives of the firm aim to both introduce and impart
knowledge to the consumers about the exclusive use of ingredients that separate this beverage
from the other beverages in the same sector. The firm aims to create advertising and marketing

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campaigns through the process of distinctive branding techniques such that the brand value of the
firm is at least of the level close to that of other brands that have been in the market for long and
have acquired substantial portions of the target market.
The firm is increasingly taking up means to communicate to the target audience the
awareness in terms of sugar consumption and also awakening in them a sense of precaution so
that they are able to switch from carbonated and sugared drinks to the beverages produced by
Nexas.
The firm is also using increasingly diversified modes of advertising and marketing
through social media and digital media platforms so that they are able to reach out to a larger
section of the consumers through minimized costs.
The Goals of the firm in terms of marketing can be enlisted as follows:
 To expand in the international market through efficient marketing and advertising
techniques and also pricing techniques
 To compete with other global beverage producing brands by specializing and
customizing the products
 To become the leaders in the beverages industry by creating awareness and also catering
to the needs of consumers who face health issues.
Financial objectives:
The financial objectives of the firm will primarily focus on the needs of the firms to generate
revenues such that the rate of market expansion and revenue generation and also sales generation
is higher than the rate existing in the previous year. The firm will increasingly focus on

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achieving exponential rates of growth across all its departments so that it is able to compete with
the firms that have been there for long in the same industry and hence occupy larger portions of
the market. The financial objectives of the firm can be enlisted as follows:
 To increase the rate of growth by 25% of the last year’s growth rate
 To expand to the equatorial countries so that higher revenues can be generated
 To improve and evaluate the prices and costs of the products and the raw materials so that
the average level of profit does not get affected
Marketing mix and marketing strategy:
Product: The product produced by the firm will comprise of no sugar content and will be
manufactured in such a way that the sweetness and taste of sugar is maintained. However due to
absence of any amount of natural sugar, the product is healthy and will render no adverse
impacts on the heaths of the consumers. The firm will also try to diversify its products such that
the portion of the consumer base who are not interested in consuming drinks are able to switch or
try the option of other beverages like sugar free tea which is also made with the same sugar free
content as the other beverages.
Price: The price of the product will be determined according to the amount of demand
existing in the market and the demographics of income of the consumers that are demanding this
drink. It will also effectively depend on the records maintained in terms of production and
supply. Another determinant of the price will be the average price existing in the market with
respect to the price rates being charged by the competitors

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Place: The countries that are located in the equatorial region and suffering from high
levels of humidity as well as containing a higher proportion of population that suffer from
diseases will be targeted and focused on.
Promotions: The promotions of this brand will take place through various channels of
communication including media channels, promotional campaigns but majorly through the use of
social media platforms and digital modes of marketing and advertising.
Implementation and control:
The plans of marketing and expansion can be implemented and controlled with the help of
efficient measures which are enlisted s follows:
 Effectively implementing the use of smart products and technology so that data about the
products and finances of the other firms operating in the same sector can be gathered,
processed and used for extending the limitations of the industry as a whole.
 Expanding to other countries by the use of health conscious campaigns and social media
platforms
 Regulating the changes in the demands and other trends in the market in comparison to
the sales and revenue generated
Conclusion:
Nexba is one of the leading organizations operating in the beverages industry of Australia
which has been efficiently been able to grow and expand. However, it still needs to enhance the
marketing techniques and recover from the threats posed by the competing firms in the industry
so that the amount of competition is reduced and sales and revenue generation is increased.

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References:
Brand-Miller, J. C., & Barclay, A. W. (2017). Declining consumption of added sugars and sugar-
sweetened beverages in Australia: a challenge for obesity prevention, 2. The American
Journal of Clinical Nutrition, 105(4), 854-863.
Mhurchu, C. N., Brown, R., Jiang, Y., Eyles, H., Dunford, E., & Neal, B. (2016). Nutrient profile
of 23 596 packaged supermarket foods and non-alcoholic beverages in Australia and New
Zealand. Public health nutrition, 19(3), 401-408.
Babor, T. F., Robaina, K., & Jernigan, D. (2015). The influence of industry actions on the
availability of alcoholic beverages in the African region. Addiction, 110(4), 561-571.
Hoare, E., Varsamis, P., Owen, N., Dunstan, D. W., Jennings, G. L., & Kingwell, B. A. (2017).
Sugar-and intense-sweetened drinks in Australia: a systematic review on cardiometabolic
risk. Nutrients, 9(10), 1075.
Kim, W. C., &Mauborgne, R. A. (2014). Blue ocean strategy, expanded edition: How to create
uncontested market space and make the competition irrelevant. Harvard business review
Press.
Kristina, S., & Wijaya, B. M. (2017, December). Risk management for food and beverage
industry using Australia/New Zealand 4360 Standard. In IOP Conference Series:
Materials Science and Engineering (Vol. 277, No. 1, p. 012025). IOP Publishing.