Marketing Plan for Nexba Beverages: Digital Communication Strategy

This report presents a comprehensive marketing plan for Nexba Beverages, focusing on the Australian market for sugar-free soft drinks. It begins with an executive summary and table of contents, followed by a situation analysis recap, emphasizing the company's introduction of sugar-free beverages and the health-conscious consumer base. The report then discusses the problem statement, highlighting competition from major beverage giants, and analyzes potential market segments, particularly health-conscious consumers and parents. It identifies the target market and positioning, focusing on low-calorie, sweetened drinks. Marketing and financial objectives are outlined, including SMART goals and financial targets. The report formulates a detailed marketing mix strategy, covering price, place, product, and promotion, and allocates a budget for the promotion mix. The conclusion summarizes the key findings and recommendations, with references and evidence of research provided, including the company's partnerships with major retailers like Coles, Woolworths, and 7-Eleven, as well as the use of natural ingredients and digital communication strategies.

Running head: MARKETING MANAGEMENT AND DIGITAL COMMUNICATION
Marketing Management and Digital Communication
Name of the Student:
Name of the University:
Author Note:

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Executive Summary
The study develops a systematic marketing plan for Nexba Beverages, which introduced the
sugar free soft drinks for the first time in Australia. The identification of the effects of both the
external and internal forces help in recognizing the target market segments based on which the
marketing and financial objectives are formulated in this study.
The study also discusses that the partnerships with Coles Supermarket became quite helpful for
serving more amounts of the customers. The company is now associated with the supermarket
chains like 7-Eleven and Woolworths. The demands of the calorie free sweetened soft drinks are
quite significant for the company to establish the better position in this competitive market. The
direct competition with Pepsi and Coca Cola is much threatening for maintaining the sustainable
position. These Retail Giants are selling various ranges of the products to the customers, which is
one of the major benefits for the company to promote the brand through such leading retail
shops.
It can be recommended that creating the social media pages would also be much beneficial for
the company to promote the brand and the product to a number of customers. The company
requires establishing their own professional websites through which the customers would be
receiving more information about the ingredients used in the soft drinks along with the
application of placing order online.

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Table of Contents
1. Introduction..................................................................................................................................3
2. Situation Analysis Recap.............................................................................................................3
3. Discussion....................................................................................................................................4
a) Problem Statement...................................................................................................................4
b) Discussion of Potential Market Segment................................................................................5
c) Discussion of Target Market and Positioning.........................................................................5
4. Marketing and Financial Objectives............................................................................................6
a) Marketing goals.......................................................................................................................6
SMART Goals.............................................................................................................................6
b) Financial Goals........................................................................................................................7
5. Formulation of Detailed Marketing Mix Strategy.......................................................................8
a) Marketing Mix.........................................................................................................................8
6. Budget Allocation for Promotion Mix.......................................................................................11
7. Conclusion.................................................................................................................................11
8. Evidence of Research................................................................................................................12
References......................................................................................................................................14

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1. Introduction
Marketing management is one of the major components that deal with the brand
promotions and gather the responses of the customers related to their needs and demands.
Accordingly, business marketers develop the systematic marketing procedures that can satisfy
the needs of the customers as well as ensure more profits for the business in a competitive
landscape (Sinapuelas, Wang & Bohlmann, 2015).
The study would develop a structured marketing plan for Nexba Beverages, which has
brought the revolutionary traditions in the soft drink market in Australia. The company has
launched the Naturally Sugar Free Cola, Orange, and Lemon Sparkling Infusions. The study
would develop a systematic marketing plan for increasing sales ratio. Furthermore, a detailed
marketing mix analysis would provide the fruitful insights regarding the relevant marketing
strategies to be developed. A structured budget will also be formulated to understand the
probable expenses on the promotional mix.
2. Situation Analysis Recap
Nexba Beverages introduced the sugar free soft drinks for the first time in Australia.
These naturally sugar-free soft drinks have set the priority level at the top of the list since the
Aussie customers are much health conscious. The new range of Cola includes the natural
ingredients, zero sugar alternatives, and different flavors or sweeteners (Ainomugisha, 2016).
The situation analysis for this beverage market determines the demands of the society in terms of
consuming health drinks with tasty flavors. The stable political scenario of Australia is quite
helpful for the business to ensure growth and sustainability. In fact, the higher economy of the
country is contributing towards profit making values for a longer run.

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It has been observed that the current generation in Australia has been facing tremendous
challenges with the increasing rate of obesity. The zero calorie sugar mixed in this soft drink is
quite healthy for the people. Therefore, society accepts these newly launched soft drinks that
consider high level of profitable market (Hatch, 2015). One of the major strengths of the
company is the natural ingredients used for preparing the soft drinks. The current demands for
the healthy yet tasty drinks create and opportunistic scenario for the company (Byrne, 2017).
3. Discussion
a) Problem Statement
The idea obtained from the situation analysis indicates that Nexba Beverage has been
facing the direct competition with beverage giants Pepsi and Coca Cola. These two dominant
brands have already introduced the anti sugar soft drink that creates high challenges for Nexba
beverages (Convenienceworldmagazine.com.au, 2017). The company has been experiencing
considerable growth by stealing customers from market leaders like Nestea and Lipton since the
establishment in 2010. The vast range of creatively flavored sweetened iced teas is quite
attractive and demanding to the customers. The customers can purchase these soft drinks show
the 7-Eleven convenience stores. However, on the other hand, it has been observed that the
promotional marketing and branding process of Coca Cola and Pepsi are dominating the
beverage market in Australia (Drew, 2013). If Nexba Beverage fails to create the appropriate
promotional strategy for attracting more customers, it would be quite difficult for the company to
gain profit and retain the sustainable position for a longer run. In addition to this, the company
requires concentrating on building a good customer rapport to generate the sense of reliability
and develop the attractive brand image.

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b) Discussion of Potential Market Segment
Nexba Beverages was inspired by the naturally sweetened teas available in Mexico,
Adopting such ideas from there; the company has strengthened their position in the Australian
market. The idea worked well in Australia due to the higher demands for the natural and healthy
teas and the soft drinks among the customers. However, the business has already faced almost
300% growth by the year of 2016 (Cooper, 2017).
The company has built up a strengthened network by conducting an extensive market
research. The market research indicates that majority of the Australian customers have
recognised that the amount of daily consumed sugar is necessary to be reduced. Parents are more
likely cutting down the amount of sugar from the drinks of their kids. The higher need for
healthy alternatives yet tasty flavored soft drink creates the potential market segment for the
company (Drew, 2018). The company is now expecting the higher profits from this potential
market.
c) Discussion of Target Market and Positioning
The current market scenario develops the ideas about the extensive concerns of the
Aussie customers in consuming the low level sugar drinks. It is noticeable that when the
Australians became highly concerned about the selection of the sugar and gluten free foods and
drinks, Nexba Beverages has become the most suitable brand. It has captured the strengthened
position in the local low-calorie brands (Amit, 2018). The target market is the health conscious
Aussies who prefer fizzy drinks with low-calorie sugar yet sweetened drink. Especially, parents
are the most targeted audience for this company. The extensive market research observes that
majority of the parents seek that their kids consume lesser sugar in their drinks. Hence, the
company is targeting the parents group for developing the target market.

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After having established in the market, Nexba first moved to the grocery market. At the
initial, this beverage used to be sold through Petrol and Convenience (P&C) and achieved
almost 4.8% market share. It is then considered as the fastest growing beverage brand having the
growth of 36% (Perrone & Wodonga, 2015). Later, the company established partnerships with
Coles Supermarket, which is quite helpful for serving more amounts of the customers. The
company is now associated with the supermarket chains like 7-Eleven and Woolworths.
4. Marketing and Financial Objectives
The development of the effective marketing and financial objectives provides the clear
insights related to the business potentiality to gain profits in a competitive market scenario.
Similarly, Nexba Beverages has also structured their marketing and financial objectives based on
which the marketing strategies would be developed. The further section of the study would
provide the ideas regarding such areas:
a) Marketing goals
The marketing objectives determined by Nexba Beverages are as follows:
 To enable the overall control over the entire marketing activities initiated by the company
 To develop fruitful marketing strategies for establishing the high level of customer base
 To focus on innovative approaches for selling the high quality soft drinks to the
customers
SMART Goals
SMART Objectives
S-Specific The objectives are specific because these have the
clear focus on gaining profits from a larger

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customer group.
M-Measurable The objectives are measurable because the
appropriate profit amount is expected from these
objectives
A-Attainable These objectives are attainable because the higher
demands of the soft drinks of this brand has the
potentiality to achieve these objectives
R-Real These objectives are real because the Aussie
customers are much interested in consuming such
soft drinks
T-Time Bound The objectives are time bound because these are
expected to achieve within a stipulated time frame.
Table 1: SMART Objectives
(Source: Created by the Author)
b) Financial Goals
The financial objectives determined by Nexba Beverages are as follows:
 To gather almost 40% market share for soft drink industry by 2020
 To gain a 15% return on capital investment for the soft drink
 To increase the market size of the company by 10%

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5. Formulation of Detailed Marketing Mix Strategy
The observation of the business potentiality and the market demands, it is essential for
the company to structure the effective marketing strategies. The further section of the study
would concentrate on the marketing mix and some of the identifiable marketing strategies for
Nexba Beverages to ensure the business profitability in the future.
a) Marketing Mix
According to Zheng et al., (2015), marketing mix is considered as the alignment of the
diverse factors, which are entirely controlled by the company for influencing the consumers in
terms of purchasing the products. This foundation model observes the major areas for the
marketing activities, such as price, product, place, and promotion (Hanssens et al., 2014). The
marketing mix would discuss in terms of identifying the appropriate marketing strategy for
Nexba Beverages.
 Price
Nexba Beverages has been concentrating on targeting the parents in the Australian market.
The company understands the demands of the sugar and gluten free soft drinks with a healthier
approach. In order to gather a high customer base in a competitive scenario, the company has set
their pricing structure quite lower. It has been observed that the customers tend to purchase the
high quality products with low prices (Chepulis et al., 2018). In such context, this lower pricing
structure initiated by the company would be much profitable and beneficial together more
responses from the Australian customers.
 Place
The next segment of marketing mix is place, which determines the suitable location from
where the customers would receive the necessary products. It is necessary for the company to

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identify the appropriate location where the customers often visit and get ideas about this soft
drink. Nexba Beverages thus has selected the supermarket chains like Coles, Woolworths, and 7-
Eleven for selling these soft drinks (Perrone & Wodonga, 2015). These Retail Giants are selling
various ranges of the products to the customers, which is one of the major benefits for the
company to promote the brand through such leading retail shops.
 Product
The next segment of marketing mix is product which is the most essential part of the entire
marketing plan (Perrone & Wodonga, 2015). Nexba Beverages has introduced the Cola, orange
and lemon flavoured sugar free sweetened soft drinks. The naturally sugar free drinks contain
zero sugar without the use of artificial ingredients and mixing the sweet flavors that are found in
the traditional soft drinks. The company uses a blend of natural sweetness such as Erythritol and
Stevia (Productoftheyear.com.au, 2017). These soft drinks create impact on managing the
balance of sugar levels and preventing the tooth decay. The parents in Australian market usually
look for the solution to reduce sugar from their children's drinks.
 Promotion
Another most vital component of marketing mix is promotion. With the help of effective
promotional strategy the companies can gather the attention of the potential customers.
Especially, a competition driven market requires the efficient promotional strategy that can
strengthen the position of the company in a significant manner. It has been observed that Nexba
Beverages has been facing the direct market competition from prominent beverage brands like
Pepsi and Coca Cola (Hatch, 2015).
The huge market share of these two companies as well as their brand images are quite
challenging for the company. Hence, it is essential to identify the most suitable procedure to

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promote the soft drink plant to the target customers. It generates the sense of Reliability which
helps a company to grow stronger and strengthen the market position for a long time. Currently,
Nexba Beverages has been using the direct selling process as a promotional marketing strategy.
Creating partnership with Coles, 7-Eleven, and Woolworths, the company is trying to gather the
attention from target consumers who are visiting this place is often. Based on such observation,
the company needs to develop the most preferable marketing strategies to achieve the determined
goals.
b) Marketing Strategy
The entire marketing plan provides the insightful knowledge about the business
potentiality to strengthen the market position in a competitive scenario. However, the direct
competition with Pepsi and Coca Cola can affect the market position of Nexba Beverages in a
recognizable way. Currently, the company has been looking forward to develop the better
solution for the promotional marketing strategy (Hatch, 2015). Establishment of an efficient
promotional strategy would create the high range of customer segments and ensure more
profitable benefits for the company to survive in a competitive environment. It is noticeable that
the current market is driven by online shopping procedure. The company requires establishing
their own professional websites through which the customers would be receiving more
information about the ingredients used in the soft drinks along with the application of placing
order online. Creating the social media pages would also be much beneficial for the company to
promote the brand and the product to a number of customers. Receiving feedback so through
social media pages and improving the online Customer services would be much beneficial in
terms of establishing the brand image. On the other hand, the company can even provide

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discounts to the customers for the first three months. The innovative and advanced method of
demonstrating the ingredient use would be attractive to the customers.
6. Budget Allocation for Promotion Mix
Elements Budget (Assumed)
Modifying the official website of the company A$1500
Developing the application for placing online
orders and money transactions
A$1500
Installing the malware and software functions A$3000
Technological Development for the demonstration
purposes
A$5000
Customer care executives A$2000
Promotions through TV advertisements A$3500
Total A$16,500
Table 2: Budget Allocation
(Source: Created by the Author)
7. Conclusion
The marketing plan is focusing on increasing market share and strengthening the
competitive position of Nexba Beverages in the Australian market. The company has launched
the Naturally Sugar Free Cola, Orange, and Lemon Sparkling Infusions. One of the major
strengths of the company is the natural ingredients used for preparing the soft drinks. The current

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demands for the healthy yet tasty drinks create and opportunistic scenario for the company.
Direct competition with beverage giants Pepsi and Coca Cola is quite threatening for the
company in terms of achieving success. These two dominant brands have already introduced the
anti sugar soft drink that creates high challenges for Nexba beverages. Creating the social media
pages would also be much beneficial for the company to promote the brand and the product to a
number of customers.
8. Evidence of Research
The study is developing the idea about the structured marketing and digital
communication plan that can shape the consumers’ decision making process. According to
Leeflang et al. (2014), the development of the soft drink businesses depends on the consumers’
attitudes towards consuming the soft drinks. The present scenario reflects that effective
marketing procedures and digital advertisements create much impact on the food and drink
behaviour of the children. In the year of 2008, ten global companies together established the
International Food and Beverage Association (IFBA) to put a restriction on the advertisements
that influence the children to consumer unhealthy drinks and foods (Karjaluoto, Mustonen and
Ulkuniemi, 2015). This initiative is supposedly much beneficial for Nexba Beverages since the
company promotes the soft drinks that are healthy for the children as well as adults. The parents
would accept such drinks that would not harm the health of their children.

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Graph 1: Market Size of the Soft Drink Industry in Australia
(Source: Statista.com, 2018)
The above statistics imply that from the year of 2010 to 2014, the soft drink industry in
Australia experienced some considerable growths. In fact, in the year of 2013, the market size of
the Australian soft drink industry was valued at almost A$8.85billon (Statista.com, 2018). It
suggests that Nexba Beverages has the remarkable future insights to grow in this demanding soft
drink market. However, the application of the appropriate marketing and digital communication
process is necessary to satisfy the customers’ needs and attracting more customers.

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