Comprehensive Marketing Plan for Nexba Beverage Company

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AI Summary
This report presents a comprehensive marketing plan for Nexba, a beverage company specializing in sugar-free alternatives. It begins with an executive summary and introduction outlining the company's mission and objectives. A thorough situation analysis assesses Nexba's current market position, emphasizing the growing demand for natural and healthy products. The report identifies potential market segments and conducts a SWOT analysis to evaluate the company's strengths, weaknesses, opportunities, and threats. It defines the target market, marketing objectives, and financial goals. Key marketing strategies and the marketing mix are discussed, including product development, pricing, distribution, and promotion. An implementation plan and promotion mix are detailed, followed by a conclusion summarizing the key findings and recommendations. The report highlights Nexba's commitment to providing healthier beverage options and its strategies for growth and market penetration in a competitive landscape.
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Running head: MARKETING MANAGEMENT & DIGITAL COMMUNICATION
Nexba’s Marketing Plan
Student’s name
Name of the Institute
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MARKETING MANAGEMENT & DIGITAL COMMUNICATION
Executive Summary
The report discusses the marketing plan for Nexba for the coming year. The company has
huge potential and opportunities to grow. The management team is efficient and experienced.
The plan majorly constitutes the introduction about the company, its purpose etc. Then it
determines the current situation of Nexba in the market. The plan also highlights the challenges
faced by Nexba. SWOT analyses are done to determine the scope of the company. It is found
that the company is rich with the authenticity of product. But due to its small scale, there is lack
of brand awareness and production facility. The plan also seeks the current objectives of the
company and marketing strategies will be used. In the later section of the report there is
implementation plan, promotion mix and conclusion.
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MARKETING MANAGEMENT & DIGITAL COMMUNICATION
Table of Contents
Introduction....................................................................................................................................3
Situation Analysis Recap................................................................................................................4
Problem Statement..........................................................................................................................4
Potential market segments..............................................................................................................5
SWOT analysis...........................................................................................................................5
Target Market Positioning..............................................................................................................7
Marketing objectives and goals......................................................................................................7
Financial objectives and goals.......................................................................................................8
Marketing strategies and Marketing Mix......................................................................................8
Implementation & Control...........................................................................................................10
Promotion Mix..............................................................................................................................11
Conclusion....................................................................................................................................12
References.....................................................................................................................................13
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MARKETING MANAGEMENT & DIGITAL COMMUNICATION
Introduction
Troy Douglas and Drew Bilbe founded Nexba in 2010. The main purpose was to provide
healthier alternatives to people. The idea of launching Nexba came to Drew when he was at
Mexican Beach, enjoying homemade cool iced tea. Upon returning home, he shared his idea with
his best friend and fellow entrepreneur to create the range of healthier ice tea. There was no
stopping since then. The company has many options available now like soft drink, sparkling
water and infusions in many flavours. All of these beverages haves either low sugar or no sugar
with no artificial content. Their mission is to become fastest growing global natural, sugar free
brand. The company is challenging big companies like Nestle, Pepsico, and Cola etc. The
challenges in front of them are creating awareness, partnering with other retailers and provide
superior value to customers (Huang & Sarigöllü, 2014). Nexba is local Australian beverage start
up. It was launched in 2010.It has multiple products in its portfolio like ice tea, soft drink, cola,
aerated drinks etc. The company has tied up with all major retailers like Coles, Woolworths,
Alda, 7-Eleven etc. It has partnered with leading P&C customers nationally. It has also tied up
with Dominos to create exclusive range of products. The company claims to challenge obesity,
cardiovascular disease and type 2 diabetes caused due to high sugar or calories. The company
has authentic product line which is made out of natural ingredients like fruits, stevia etc.
Situation Analysis
The current global market thrives for natural product. There is great boom where impact
of sugar is known to people and is more talked by media (Jacobson, 2017). So people as well as
companies are taking health of customers seriously and finding alternatives to provide them
healthy drinks (Bublitz & Peracchio, 2015). So the companies like Nexba are not only
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appreciated by customers but as well as retailers. The growing trend of healthy living and sugar-
free diets has growth potential (Jacobson, 2017). The success of Nexba depends on its strategic
retail partnership with national retail, supermarket and food chains. These stores help Nexba to
reach to mass audience. In the coming year, the coming sees itself creating awareness about its
product both globally and internationally, becoming available in large formats i.e. in 1 litre pack.
Currently company sells a four pack glass range .The new advancement will open them up to
another type of customer.
Problem Statement
The company wants to accelerate as the world’s recognized natural sugar free beverage player.
Australians need healthy alternatives that help in reducing sugar consumption and reduce the
harmful artificial sweeteners and ingredients like high fructose (Falbe & Madsen, 2017). The
company expects to launch new products in the markets.
Potential market segments
Nexba wants to increase its visibility through petrol and convenience stores and also
through school canteen accounts. The company is providing healthy alternatives for mass
market. They are providing ready-to- drink, a lifestyle beverage, a natural product with low sugar
and low calories. Nexba is partnering with some of leading P&C customers nationally to release
variants to attract wider audience. The products use natural sweetener that tastes similar to sugar
but without calories, tooth decay or impact on blood sugar levels. This leads to reduction in
obesity, type 2 diabetes and cardiovascular diseases (Brand-Miller & Barclay, 2017). However
there is no trade off in taste and thus the products are aligned with customers’ demand.
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SWOT analysis
Strengths
The company has product options available in different flavors like orange which are
highly favorable by customers. The Nexba technology and product mainly focuses on
brand and product development. All other operations like bottling, manufacturing are
outsourced. So the company maintains its authenticity by delivering innovative and
healthy products. The other strength of the company is its channel partners for retailing
(Varley & Rafiq, 2014). These include Coles supermarket, Coles Express, 7-Eleven,
Woolsworth, Alde, United Petroleum and many more. The company looks forward to
long term profit through these lines. The products are produced from fruit extract, natural
fruit flavor. There are no sugars or artificial content. The products are genuine and giving
tough competition to strong brands.
Weaknesses
Nexba has to depend upon utilizing the production capacity of different brands. They
have come up with agreement in Sydney with global alcoholic drink giant Diageo, which
owns Johnnie Walker and Smirnoff. So the company lacks sufficient production capacity
to increase or to meet the volumes.
Opportunities
There is a huge opportunity in catering to consumers’ demand for healthy soft drinks.
The consumers are concerned about sugar, diabetes and obesity (Lee & Oey, 2014).
There are large supermarket giants who would like to introduce Nexba products. Also
Dominos’ has asked Nexba to create exclusive healthy beverage for them. The wellness
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and health category in beverages is growing rapidly. Nexba is also looking for
opportunities with fast food outlets.
Threats
Coca-Cola is launched a low kilojoule version named Coca-Cola Life which uses stevia
as natural sweetener. Pepsi has also introduced Pepsi Next in 2012 also reduces stevia to
reduce sugar content. So Nexba is currently competing Nestea, Lipton, Pepsico and Coca
Cola who are global giants.
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Target Market Positioning
The company is strictly committed to health. The company generally position themselves
as healthier drink for daily lifestyle. The company present themselves as major fighter for
obesity, cardio vascular disease and type-2 diabetes (Happell & Platania-Phung, 2015). They use
no sugar and anything artificial. This helps the families to select Nexba over other players. It
claims to use stevia, erythritol, natural flavours. They do not use sugar fruit extract. This not only
attracts the customers but supermarkets like Woolsworth, Dominos’ who are changing their
shelves as per growing healthier requirements. The company present themselves as one of the
fastest growing entrepreneurs who majorly focus on authentic product development and
branding. The company also tries to come up with innovative products to give tough competition
to its competitors.
Marketing objectives and goals
The company aims to target broader market in the longer run. It is planning to spread
globally. The company is currently trying to target all major supermarket giants. They are
coming up with packaging which attracts large amount of audience. Moreover they are not
leaving any stone unturned. They are planning to produce healthy product for Dominos’- pizza
chain. Also the company has excellent people on board to create strategic planning. The
company has outsourced its bottling, retailing operations so that it can focus on the core value
i.e. product development. In the coming year one of the major focuses of company is create more
awareness about the product (Arora & Kumar, 2018). So company would be using its funds for
expansion and in building the brand awareness (Ang & Hooi, 2018). The company is also sure to
start attaining profitability in the coming year. The company focus on all small aspects like
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packaging, pricing etc. (Vignali, 2015). The staffs are young, and designing is also given prime
importance. The key marketing objective in quantitative terms can be discussed as:
I. Increase the revenue of the company by 12% in next 3 years
II. Increase profitability of the company by 8%
Financial objectives and goals
Nexba definitely wants to enter into profitability. They are targeting $8 to $10 million
revenue in this financial year. They are increasing their production every year. They have already
tripled the sales and expect $10 million turnover in the next year. The founders have put a lot of
efforts in building the market share of more than 4%. The company looks forward to increase it
in the long run. They have switched to contract manufacturing
Marketing strategies and Marketing Mix
The growing trend towards healthy living and sugar free diet has enormous growth
potential. In terms of strategies company is using differentiation strategy to compete other
players. All its products are sugar free and natural. It is using natural fruit, Stevia and erythritol.
The company makes its presence in the events which promotes healthier lifestyle (Walker,
2015). The company also focuses on building relationship with the channel partners. The needs
of retail partners are analysed and specific products are marketed for them. The company will
use CTD for marketing and has third party logistic service provider. The company does not
believe in vertical integration (Fernie & Sparks, 2014). Instead it focuses on the core product
development and branding (Australia, 2015). From Ansoff Matrix, we can say that the company
is going to invest its resources in market penetration, product development, market development
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and diversification (Dawes, 2018). In terms of product development the company is introducing
new flavours in the same market. For market penetration it is tying up with food outlets to cater
to multiple audiences. The company is also trying to expand globally through online and offline
channels which help in product development. The company is also tying with global players like
Dominos’ by bringing new product in the new market.
Following Promotional mix will describe all the elements of product industry used by the
company to set its marketing strategy (Resnick & Lourenço, 2016).
Product: The Company has spent years in innovation matching the natural sugar curve to bring
sugar free beverage. However, it does not compromise on taste. The mixture of ingredients
includes Erythrotol, Stevia, Natural flavours .Stevia is extracted from sweet leaves of Stevia
plant. It is naturally 200-300 times sweeter than sugar (Grevsen & Henriksen, 2014). However, it
does not have impact on insulin, tooth decay or blood glucose which is not in case of sugar
(Prakash & Bunders, 2014). The second ingredient is erythrotol which naturally occurs from
human tissues, melons, peers and body fluids. In case of Nexba it is created by fermenting
natural sugar found in corn. The by product has no calories and does not laxative effect. There
are no artificial preservatives. The company uses citric Acid and Malic Acid. These can be found
in citrus foods such as oranges, limes and lemons.
Price: The Company provides value to the customer at affordable price. The price is kept in a
way that mass market can be attracted. The company understand its competitors so in order to
promote themselves in beverage industry their price should be at par with competitors. For a
large order the company also provides discount. There is wholesale price for stockist who can be
café, restaurant or bars.
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Place: The company has made its presence both online and offline. Nexba products can directly
be brought from online stores. They can also be brought from Australian retailers. A wide range
is available in 7-Eleven, Alda and Chemist warehouse. The shipping and return policy is easy
and flexible
Promotion: The Company will pay special attention for promotion. Up till now it was using its
retailers to push its products into the market. The company has also launched certain events like
Selfie events on the YouTube to create awareness. It is also leveraging social media. In future the
company is going to promote its product by paying special attention to social media marketing,
sales promotion, advertisement etc. The company will focus its design and packaging to keep
itself separate from its competitors.
Implementation & Control
The development of strategy is still easy. However, implementation is always a difficult
task. The company will follow managerial function for implementing the strategy for the
upcoming year. It includes
Planning: The founders and partners have already decided to expand company globally, provide
innovative products, relationship building with the channel partners and increasing awareness.
Organizing: All this comes when all the departments are aligned towards the goal. So it is
necessary to build performance criteria for each department. Also the organization structure is
kept lean. Employees are empowered by providing them decision making authority.
Leading: The Company will maintain its personality of young and brave. The founders will have
transformational leadership style. In this case both senior and low executives are given authority
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and have say in decision making. The benchmarking is done so that each and every individual
will meet its target. Innovation is given prime importance.
Controlling: The matrix will be used to evaluate the performance of all employees. There is no
hierarchy based promotion. The success will be based on performance based. For example for
any sales executive his performance scale will constitute his efforts on pitching more retailers.
The performance is measured quarterly so that by the end of year the company will achieve its
marketing and financial goals (Armstrong & Brennan, 2015).
The mechanism of implementation would be effective when the organization also has a
system of feedback in place. With the control procedure of feedback, the organization would be
able to focus on continuous improvement and sustainable development.
Promotion Mix
The promotion mix tool is used to communicate to wider audience about Nexba
products. The company will majorly use sales promotion that stimulates consumer purchase. It
includes free samples, discounts, product positioning etc. Advertising is another way in which
company will approach to broader audience as healthy beverage. The newspaper, Internet ads
and social media will be used to attract mass market.
Type of Promotion % allocation of budget Key platforms
Sales promotion 45% Discounts, product placement
Traditional Advertisement 15% Newspaper, Banners
Social Media Advertisement 40% Facebook, Instagram, Twitter,
Search Engine Optimization
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