Marketing Management Of Nexba Beverages-Free-Samples Assessment Answer

le. The sugar free drinks of Nexba can drive the demand away from other carbonated drinks (Evans, 2017). Economy of the country is very stable and strong that is beneficial for the business of Nexba. This analysis stated that wellness and fitness in the food and beverages sector is growing continuously and no player is offering sugar free drinks. Considering this situational analysis, it can be said that this company can grow its business as a leading player in Australian beverage industry (Guthrie, Cuganesan & Ward, 2008).

Segmentation, targeting and positioning approach (STP)

When a company plans to bring its new products and services into marketplace, it needs to identify its targeted customers and develop an attractive positioning statement so that it can grab the attention of a large population. Nexba Beverages is targeting its potential customer by analyzing the needs and wants of customers. The STP approach for Nexba Beverages is stated below:

Segmentation

In the year 2010, Troy Douglas and Drew Bilbe aim to transform people’s lives by offering natural and sugar-free beverages which assist them make better lifestyle choices. Nexba Beverages is segmenting its customers by considering different characteristics like demographic, psychographic and behavioral characteristics. The market segmentation for Nexba Beverages is given below:

Demographic Characteristics

Under demographic segmentation, Nexba Beverages targets the customers on the basis of their age and income. It considers the people from the age group of 20 to 55 years old who prefer to take the healthy drinks. It is offering the drinks on modest price that is affordable for both lower and medium income level people. It is one of the most popular bases of Nexba Company for differentiating their customers (Davis, Lockwood, Alcott & Pantelidis, 2018).

Psychographic Characteristics

By considering the psychographic characteristics, Nexba targets the people who love to live a healthy life style. Moreover, it segments the market their consciousness towards health. Increasing interest and concern towards health is pushing the customers from sugar towards sugar-free alternatives.

Behavioral Characteristics  

Under behavioral segmentation, the organization offers the products by aiming the customers who are suffering from different health issues like obesity, type 2 Diabetes and cardiovascular disease. In Australia, this target segment is looking for the natural alterative which reduces the sugar consumption and avoids the harmful ingredients like artificial sweeteners and high fructose corn syrup (Young, 2014).

Targeting

Considering the above market segmentation characteristics, Nexba Beverages focuses on the health and fitness needs of customers. The target market for Nexba’s sugar free drink is the health conscious people and youth in the segmented market. The company offers this sugar free beverage for the people who are suffering from different health issues like diabetes, obesity, tooth decay and cardiovascular diseases. The marketing efforts of the company are totally focused on its target market.

Positioning Approach

To position itself among targeted audiences, Nexba Beverages adopts an effective and attractive statement that assists the organization to grab the attention of customers (Rosenbaum-Elliott, Percy & Pervan, 2015). It is adopting the attribute positioning to promote its products. These attributes are such as quality, taste, prices, healthy etc. The sugar-free drink is intended to be positioned as “the only drink with the natural and sugar free ingredients”. It places itself as “the product with no artificial sweetener and harmful ingredients”. The firm is proposed to give its sugar free drink an edge over other carbonated drinks in terms of health in customers’ minds (Harris, 2016).

Marketing Objectives

To bring its sugar-free drinks to the marketplace, the company establishes some marketing objectives which it wants to achieve in the time frame of next three years (Percy, 2014). As the sugar-free drink by Nexba beverages is new product in the market, so the company will decide the marketing objectives accordingly. For this product, marketing objectives of Nexba are given below:

• To increase the customer awareness towards healthy and sugar-free drinks.
• To attract more population to Nexba’s products by establishing a strong brand image in global food and beverage industry.
• To provide 100% customer satisfaction to the customers who need sugar-free drinks (Mayer, Melitz & Ottaviano, 2014).

The marketing objectives of Nexba can be explained by using SMART objective framework. The objectives established by the company are specific and related to its operations and future growth (Lee, Kozlenkova & Palmatier, 2015). These objectives are realistic and company has enough capabilities to attain these objectives. Nexba can measure the objectives considering the number of customers increased, sales of sugar-free drink and consumption of drink among targeted audiences. Nexba will be offering the drink with healthy and quality ingredients.

Financial Objectives

Apart from marketing objectives, Nexba Beverages will establish some financial objectives which will help the company to attain its overall goals (Yadav, Joshi & Rahman, 2015). These objectives can be measured in monetary terms. Financial objectives of Nexba Beverages are mentioned below:

• Under this marketing plan, the company aims to increase its market share by 15% in the timeframe of next three years. Through this, it wants to maximize the share owner value over the time.
• Nexba Beverages aims to maximize its long-term cash flow so that it can gain sustainable financial growth in coming years.
• The organization seeks to increase its sales by 15% and gain sustainable competitive advantage over well-established competitors in food and beverage industry (Mytton, Clarke & Rayner, 2012).

Formulation of a detailed marketing mix strategy

In order to attain the above marketing and financial objectives, Nexba Beverages should formulate and implement effective marketing strategies by targeting appropriate customer group (Nexba, 2018). It can develop the marketing strategies under marketing mix framework that is given below:

Product

Product is one of the most important parts of marketing mix that will help the company to resolve the problem statement given in first statement. Nexba Beverages has been identified to become one of the most popular beverage organizations in Australia, offering sugar-free brand. It is a fresh and young brand engaging Australians to live a healthier lifestyle with natural products and low calorie (Hanssens, Pauwels, Srinivasan, Vanhuele & Yildirim, 2014). The major products of the company are such as soft drinks, Real Ice Tea, Sparkling Infusion, Flavored Sparkling Water etc. In the future, the company should increase its product range by including new products. The products should be sold in different sizes and packages which can attract more customers towards Nexba’s products.

Price

Pricing strategy has a vital role in the marketing process of an organization. As the company is offering a wide variety of products, the pricing is done on the basis of demographic and market segment. Currently, the company is offering its sugar free drinks on $3.50 that is affordable for all income level groups. In the future, Nexba should set its prices considering the pricing strategy of well-established competitors like Dr Pepper Snapple Group. It should provide the discounted offers to the customers and offer the discounts on the bulk purchases by even bundling the products (Hristov & Reynolds, 2015).

Place

Recently, Nexba Beverages is offering its products and services into Australian cities. It is one of the fastest growing beverage companies in the convenience and petrol markets (Ryan, 2016). Still, the company does not have more popularity in the beverage industry. The people can purchase the products from popular super markets like Coles and Woolworths. Considering the competition in sector, it should establish a wider distribution network so that it can deliver its products to a larger population. Likewise Coca-Cola, it should follow the FMCG distribution pattern. It can enhance distribution network by delivering the products to rural areas also. Opening more stores can assist the organization to increase its sales in different locations (Kumar & Patra, 2017).

Promotion

Promotion strategy is the most significant strategy under marketing mix framework. Nexba Beverages should focus on this strategy so that it can enhance its brand presence worldwide. The company should adopt different promotional and advertising strategies to create an enhanced demand in the market by relating with the behavior and life style. The company should make huge investment on marketing and advertising process (Godey, et al, 2016). The company should use different modes of advertising like social media, print media and Television ads. It should post the advertisement on social media platforms like Facebook, Twitter, Youtube etc. To promote its products, the company should specify its healthy and quality ingredients so that it can entice diabetic and health conscious people. In today’s modern environment, people are very concerned towards environment and natural resources. So Nexba Beverages should engage in different corporate social responsibility (CSR) activities to assist the social and environmental issues all over the world (Camilleri, 2018).

Budget allocation for promotion mix

To implement its promotion strategy, Nexba Beverages will formulate a budget that will include all the spending on promotional mix elements. Budget will be prepared considering the above-mentioned objectives. The organization has projected that it will spend $100000 on promotional mix elements. The budget shows that figure is allocated for different modes of promotion (Karjaluoto, Mustonen & Ulkuniemi, 2015).

This budget will enable the organization to attain its marketing and financial objectives i.e. to increase its customer base. The budget allocation for promotional mix is given below:

Promotional Mix Budget
Promotional mix elements	Amount
Social Media Marketing
1. Facebook	$6,000
2. Twitter	$7,000
3. Google	$9,000
4. Youtube	$7,000
Total Social Media	$29,000
Direct Marketing
E-mail Marketing	$6,000
Internet Marketing	$13,000
SEO Marketing	$3,000
Total	22,000
Print Media	$9,000
Others
Television ads	$10,000
CSR activities	$15,000
Total	$25,000
Events and Sponsorships	$15,000
Total Required Budget for Promotion	$100,000

Conclusion

From the above analysis, it can be concluded that marketing and digital communications play an important role in the growth of an organization. It is very important for the organization that it focuses on its marketing and promotional strategies. Nexba Beverages is a soft-drink brand in Australia that started to offer sugar-free drink targeting the health conscious people. To enhance its brand presence, Nexba Beverage needs to adopt effective tactics and strategies. It will help the company to increase its customer base worldwide. The above analysis shows that company is facing intense competition from Dr Pepper Snapple Group. By implementing new strategies, Nexba will be able to attain more competitive advantage against other competitors. It should expand its product range by including more healthy drinks and other beverages. It can be found that this organization can achieve its marketing and financial objectives with the implementation of this marketing plan

References

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