Marketing Plan for Nexba Beverages: Analysis and Strategies

This report presents a detailed marketing plan for Nexba Beverages, focusing on the key marketing problem of customer acquisition. It begins with an executive summary and table of contents, followed by an introduction to the company and a situation analysis recap. The report identifies the t...Read More

Running head: MARKETING MANAGEMENT & DIGITAL COMMUNICATION
Nexba’s Marketing Plan
Student’s name
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Executive Summary
The objective of this report is to discuss the marketing plan of Nexba Beverages. The
report addresses the key marketing problem of user acquisition for Nexba. The report highlights
that key target market for Nexba are the health enthusiasts people that want less intake of sugar
in their drinks. The report discusses the key marketing objectives for Nexba Beverages. The
company wants to increase awareness of its porducts in the market and the same can be done
with a strong focus on social media marketing tools. Therefore, it is recommended that Nexba
Beverages must invest heavily on social media marketing tools like Facebook, Google, etc.

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Table of Contents
INTRODUCTION........................................................................................................................................................................4
SITUATION ANALYSIS RECAP...............................................................................................................................................4
PROBLEM STATEMENT..........................................................................................................................................................4
POTENTIAL MARKET SEGMENT FOR NEXBA..................................................................................................................5
TARGET MARKET POSITIONING.........................................................................................................................................5
MARKETING OBJECTIVES AND GOALS..............................................................................................................................6
FINANCIAL OBJECTIVES AND GOALS.................................................................................................................................7
MARKETING STRATEGIES AND MARKETING MIX.........................................................................................................7
PROPOSED IMPLEMENTATION & CONTROL...................................................................................................................9
BUDGET ALLOCATION FOR PROMOTION MIX.............................................................................................................10
CONCLUSION............................................................................................................................................................................10
REFERENCES............................................................................................................................................................................12

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Introduction
Nexba Beverages has been able to establish a niche in the market with its focus on
healthy drinks options. The company has transformed the soft drinks industry with its products
of sugar free drinks as good and healthy options for Cola. The company was founded in the year
2010 with a strong vision of providing healthy drinking options to people. With time, Nexba is
able to have a loyal customer base. However, the problem with Nexba bevearges is to acquire
new customers. It is important that Nexba should have a strong marketing plan in place that
would help the company to acquire more customers (Egger, Katz, Sagner, Dixon & Stevens,
2014). A brief recap of situational analysis of Nexba beverage can be discussed as:
Situation Analysis Recap
The beverage analysis is a growing industry in Australia and competition is high. The
customer switching cost is very low. Therefore, it is important that organizations should have a
strong positioning in place that can help them to get a good deal of market share. Nexba has a
unique product proposition of health drink in place and the company wants to create awareness
in the market about its unique product range (Metin & Kizgin, 2015). The specific marketing
problem for Nexba can be discussed as:
Problem Statement
The company finds it difficult to acquire new customers as the product is a healthy drink
and it is costly than the easily available substitute likes Cola and Soda drinks.

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Potential market segment for Nexba
Nexba operates in a niche market. The key target market for company are the consumers
that like healthy drinks. The good thing for Nexba is the increased focus on health and nutrition
for younger generation. There are various variables of segmentation that Nexba can use. The key
segmentation variables that organizations typically use are income, demographics, behavioural,
etc. In the case of Nexba, two key recommended segmentation variables are behavioural and
income (Mcdonald, 2016). The product is not a low income product. Therefore, the family
income should be good. Moreover, the behavioural variable is good as consumers should have an
interest in the health drinks.
Target Market Positioning
Nexba should realize that it produces a niche product and likewise its target market
cannot be mass market. The potential target market for Nexba would be millennials, health and
fitness enthusiasts, household decision makers, moms, etc. The above target market is
recommended for Nexba as the consumers of Nexba would fall into one of the above group
(D’souza & Krishna, 2016).
The positioning statement of Nexba is to provide quality products to consumers at
premium price. The company does not want to compromise on the quality of the products at any
cost. The company wants to position its product portfolio as a premium product in the market.
The company wants to have a segment that is focused and not for mass market.

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Marketing objectives and goals
Nexba beverages operates in beverage industry and the key business objective for the
organization is increase its profitability and revenue. The marketing objectives of Nexba should
be in line with the business objective of the company. The key business objectives for Nexba
beverages can be highlighted as:
o Increase the market penetration in the Australian market. The growth in the market
penetration should increase by 10% for next 2 years.
o Increase the revenue of the company and the revenue should increase at the growth rate
of 8%.
The marketing objectives that arises from these business objective can be discussed as:
 The key marketing objective of Nexba beverages is to increase awareness about its
products. At the same time, marketing function should help Nexba beverages to create a
unique position in the market; wherein, consumers perceive Nexba beverages as a high
quality player in beverage industry (Sasmita & Mohd Suki, 2015).
 Increase the marketing budget of the company to 3% of the revenue and use this
marketing budget to achieve its business goals and objectives (Zhang, Watson, Palmatier
& Dant, 2016).
 Nexba beverages should increase its marketing activities on social media platforms as
social media is the fastest way to reach out to consumers (Hartigan, Patton-Ku, Fidler &
Boutelle, 2017).
 With the focus on marketing, the company also wants to improve customer relationship.
In fact, customer relationship marketing is a key objective for Nexba beverages.

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Financial objectives and goals
It is important that the financial objectives should also be in line with the business
objectives of the company. The key financial objectives for Nexba beverages can be discussed
as:
 Improve the profit margins of the company by 6%.
 Increase investment in the marketing and advertisement areas with expected ROI as 2X
minimum.
Marketing strategies and Marketing Mix
Nexba beverages is still an evolving company. Therefore, marketing plays an important
role for company. The marketing function would help the company to achieve its business goals
and objective. The key marketing strategy for Nexba beverages would be to use the power of
social media to reach out to consumers. Nexba beverages has made mission to become part of
healthy living. One thing which it is targeting is sugar or calorie intake for health and fitness
enthusiasts (Mohebbi, 2014). The products of Nexba beverages are sugar free and natural. The
product constitutes stevia, erythritol and natural fruit. Likewise, it is important that the marketing
strategy of the company should talk about the various product benefits that the company
provides. Another aspect of marketing strategy for Nexba beverages would be the use of mobile
advertisement. Today, the penetration of smartphones has increased in Australia with close to
94% people using smartphones in Australia. Therefore, it is important that Nexba beverages
should use some of the marketing budget as mobile advertisement. As a part of marketing
strategy, the company should also focus on its website. It is important that the website of Nexba

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beverages should be used as a one stop solution for all the information related to product and
organization (Owens, 2014).
It is important that the specific marketing strategy of Nexba beverages should be based
on the four elements of marketing. Defining the four elements of the marketing mix is crucial for
marketers. The marketing mix for Nexba beverages can be discussed as:
Product: For any organization in food and beverage industry, product is the most important
element. The key product element for Nexba beverages is the sugar free and healthy drinks
(Gummesson, 2017). As. A part of product range the company has ice tea, soft drinks, juices, etc.
The one thing common across all the product ranges is the focus on healthy drinking. The
product of Nexba beverages have very less calories and fat. All of its product will remain sugar
free and natural. The company is investing a lot of resources in product development. It is
important that Nexba beverages should continue to make product improvements on continuous
process.
Price: The pricing strategy of the company is use premium pricing. The company knows that it
sells the premium product; therefore, it can charge a premium for its prices. Moreover, Nexba
beverages is not a mass market player. Therefore, company does not want to indulge in any price
war with its competitors. The company is still a new entrant in the market and to increase the
market penetration, Nexba beverages does follow the pricing strategy of discounts. The company
offers discounts not only to end consumers but also to distributors (Perry, Daniels, Bell &
Magarey, 2017).
Place: For any new entrant in the market, place is also an important element of the marketing
mix. Nexba beverages uses both online and offline methods of distribution. The products from

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Nexba beverages can be easily bought on various retail stores (Marion, Eddleston, Friar &
Deeds, 2015). At the same time, the products are also sold on various e-commerce platforms. For
Nexba beverages, it is important that the availability of products should be high on both offline
and online channels. For the target market of Nexba beverages, the online distribution channel
make more sense as people have increased presence on e-commerce platforms (Husted, Allen &
Kock, 2015).
Promotion: Nexba beverages has the marketing objective to increase awareness in the market
and to emerge as a preferred player in the market. This is possible only when the company has
strong promotion strategy in place. It is important that the promotion should be heavy on online
channels and social media platforms. The social platforms like Facebook and Twitter can be used
to reach out to consumers (Rundh, 2016).
Proposed Implementation & Control
Development of marketing plan is only one part of the solution. The next and the
important part is the implementation of the marketing plan. While implementing any marketing
plan, the marketers must also have the provision of implementation and control. The
implementation mechanism would take a top-down approach. The senior management would
have a key role of taking charge of the implementation mechanism. The implementation of
marketing plan would also include the customers. The customers would be interviewed to get an
insight of their changing requirements. These requirements will then be analysed in terms of
their practical and economic feasibility (Barreda, Bilgihan, Nusair & Okumus, 2015). The
products will be introduced in the market by proper pilot testing. As a control mechanism, the
Nexba beverages should have a formal process of review in place. As a part of this review

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process, the organization would monitor the progress on quarterly basis. The quarterly review
system would help the organization to ensure that the things are on track.
Budget allocation for Promotion Mix
As discussed above, one of the most important element of marketing mix for Nexba
beverages is promotion elements (Banerjee, 2017). It is recommended that Nexba beverages
should use a combination of offline and online marketing channels. As a part of offline
marketing channels, the company should focus heavily on event based promotions. With event
based promotions, the company would be able to increase its reach and position in the market.
The budget allocation for different elements of promotion mix for Nexba beverages can be
discussed as:
Online channels budget allocation: 65% of total budget
o Social media marketing: 60% of total online budget
o Mobile advertisement: 40% of total online budget
Offline channels budget allocation: 35% of total budget
o Event based promotions: 60% of total offline budget
o Newspaper promotions: 10% of total offline budget
o TV promotions: 30% of total offline budget
Conclusion
The above paper discusses the marketing plan for Nexba beverages. With the above
discussion it can be said that the company should invest heavily on social media marketing tools.

MARKETING MANAGEMENT & DIGITAL COMMUNICATION
The social media marketing approach would help the company to achieve its marketing objective
of brand awareness. It is important that Nexba beverages should also use certain key
performance indicators to measure the success of this marketing plan. At the same time, the
company can explore the possibilities of partnership with other players in the industry like
Dominos.

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