Environmental Analysis of Bionade - Case Study Example

BIONADE AS A WORLD WIDE BRAND Environmental Analysis of Bionade Market Trends Being a non alcoholic drink, there are no artificial additives an indication that the commodity is meant for consumption by all consumers in the market. Given the new market trend where the consumers are seeking natural products, Bionade has been a success given its quality of being fermented. They have been able to position their brands as being purely traditional beverages and this has broadened their offers in the markets. To attract more consumers, they offer beverages with various flavors. As a botanical brew most of its products were herbs and plant roots especially the ginger roots. It is different from other drinks in the sense that apart from being a soft drink, it follows a different procedure during the manufacturing process which enables it to be fermented and produced naturally (Yang 2011, p. 12). The fact that it is an original drink just like coca cola makes the drink to attract many consumers as it undergoes organic fermentation. Viral marketing and communication strategies adopted sponsor several events that enable the drink to be successful in the market. Customers: Segmentation The drink can be one that has segmented its consumers specifically to those who are non alcoholic. It has been branded by many consumers as a hip lifestyle drink which is healthy for consumption. Every customer in the market is always in need of refreshment that will quench their thirst. This may not be an easy process as most of the drinks in the market are known to be artificial as opposed to Bionade which is a natural drink (Kotler et al., 2008, p. 21). This specifies its interest to people with specific health requirements and is not ready to consume artificial products. Business to Business In order to keep up with the high competition in the markets, there was need for the Bionade Company that was establishing them in USA to come up with a unique approach to business and their consumers. Making a natural drink made them have an advantage over other businesses which focused mostly on the artificial drinks. As a refreshment drink, it would be recommended by most consumers. The new packaging and branding of the commodity attracted the consumers in the market making the product to be on a high demand. The restaurant structure was one that attracted the consumers towards the place as opposed to other places which did not have a unique appearance. Despite the fact that they were not able to advertise their product on media, they were able to give it a unique branding which attracted most consumers. Business to Customers The manufacture of the product through a natural process of fermentation made most of the consumers to be attracted to the commodity. This was further enhanced by a red logo that made the drink be easily recognized by the consumers in the market (Marieke & De 2010, p. 67). The restaurant that was to be created in USA was one that was surrounded by a cultivated green herb garden and the intention here was to also educate the consumers on the ingredients of the herbs found in the refreshment. Providing enlightenment for the consumers is an idea that would be accepted by most consumers and this would in turn attract them towards the commodity. To attract more consumers in America, Bionade was also contemplating on adding more flavors in order to provide the consumers with a variety. Current Position within the USA Market In the beginning, the residents of America had a difficult with accepting the new beverage as they associated the word fermentation with alcohol and it was challenging to convince them that Bionade was refreshment (Steven 1994, p. 34). The ability to maintain strong links with various institutions enabled them to easily stabilize in America especially by paying more attention to educational institutions where coca cola and Pepsi had firmly established themselves. This was done in specific states namely San Francisco and Los Angeles which would serve as a basis to spread their services in America. This serves as a better starting strategy for the company as they would use the small area to familiarize with the other states. They invented more flavors which were preferred by their consumers and this made it easier for them to spread easily in other arts of America. Strategic Concerns Faced by the Company This was done with reference to the attitudes of the consumers in America as they were not easily convinced by the fact that refreshment could be produced from fermentation (Edelman 2010, p. 63). This was one factor that made them have a negative attitude towards the drink. To do away with the attitude, they started the company in specific states where it was thought that by focusing on specific institutions in the society, they would be able to address the issue in the whole of America. They started by maintaining strong links with the university campuses and schools in general where they wanted to attract the youth category which was viewed as a better source of passing the information to the other generations. Adopting an age old technique as a means of production was viewed as a unique strategy by the company with which they would be able to create attention in the market and this would make the consumers be eager to test a soft drink that was as a result of fermentation. The introduction of fermented soft drink products meant organizational change as well as cultural change for the American people (Charles et al 2009, p.56). This in turn had an effect on their attitude which the company had to work on in order for the consumers to purchase the product. The resources were limited as they manufacture of natural drinks called for use of fresh farm products such as ginger, elderberry, lychee and herbs. This was to be regarded as a natural and healthy product that could also treat minor ailments. It was challenging to find natural raw materials that were produced as a result of organic farming and they therefore had to come up with a strategy that they would use to ensure that the company was in constant supply of organic products. Deductions The current business world is one that has been dominated by technology and this serves as a requirement for the businesses to come up with unique approaches to the way in which they manufacture and market their goods. It is evident that opting for natural and healthy soft drinks by Bionade was a unique strategy that enabled them to expand their business easily in America (Bulik, 2010, p. 34). By creating more employment opportunities for people in America, they were able to use the employees as a form of advertising the drink and at the same time enlightening people through planting of the raw materials used for manufacturing the soft drink around the restaurant. The differentiation strategy made the company to have a competitive advantage over other companies. The other companies may be required to come up with a perfect substitute for the natural soft drink a step that may require time and resources (Brian & Craig 1990, p. 34). This gives Bionade a monopolistic competition over the other companies. The difference in the quality will also affect the difference in the prices. The attitude of the American people was able to be changed from one of ignorance by buyers where they now considered the characteristics and qualities of the goods that they would be purchasing. This forms an embedded approach on the ideas they have of a product they wish to purchase. Budgets have to be related to the deliverables and the performance targets of the company. This becomes a reality when they listen to their clients in order to be aware of their needs. Listening to clients can offer a basis on which to come up with unique products that meet the demands of the clients. Most of the companies hire consultants in order to help them solve most of their business problems and to win a place in the market. This calls for the need for companies to work with experienced and enthusiastic professionals who have a belief in teamwork and view success as the effort of ensuring that the goals and objectives of the company are client oriented. The greatest strength of consumers is their culture which determines what they purchase and therefore listening to them enables one to form a basis with which they can establish an appropriate product for their target group (Brian, 2011, p. 201). This is evident in the Bionade industry which produces its goods with reference to its target group and this can be noted on the composition of the product. Conclusions The success of a company is determined by the unique strategies that it adopts in the manufacture and promotion of its commodities in the market. It should be one that can be able to convince the consumers by being able to change the perceptions they have about the already existing commodities and those that are being introduced in the market. The differentiation strategy that has been employed by the company by making natural soft drinks through a unique process of fermentation has enabled the company to expand faster. The company always supports a purpose that has a guiding principle where price and results are not related in marketing campaigns (Barwise and Meehan, 2010, p. 84). They have been able to understand their strengths by focusing on their target group that values what they do. This gives them a competitive advantage with which they can focus on the value and services to their customers. Recommendations Organizations that wish to expand and succeed in their businesses have to adopt unique strategies that meet the requirements of their target group. Apart from focusing on the soft drink, the company can also come up with another product with which they can attract another target group in the market. This would serve as a way linking up with the market as a way of ensuring that your products are up to date with the demands of the consumers. It can be argued that such companies tend to limit their levels of success with reference to the strategies that have been set up. Limiting enables them to maintain focus on the set strategies where the management teams are able to understand the needs of their consumers. References Barwise, P and Meehan, S 2010, The One Thing you must get Right When Building a Brand. Harvard Business Review. Vol. 88. (12), 80-84. Brian S. (2011). Engage! The Complete Guide for Brands and Businesses to Build, Cultivate, and Measure Success in the New Web. New York: John Wiley & Sons. Brian, M. & Craig, J 1990, The Psychology of Consumer Behavior. New Jersey: Lawrence Erlbaum Associates. Bulik, B 2010, Mad Aves myopia when it comes to Main Street. Advertising Age Oct 11, Vol. 81. (36), 34.   Charles W. L., Joseph F. H and Jr., Carl, M 2009, Essentials of Marketing, Canada: South Western Cengage Learning. Edelman, D 2010, Branding in the Digital Age. Harvard Business Review. Vol. 88 (4), 62-69. Kotler, P., Gary A., Veronica, W. & John, S. (2008). Marketing defined. Principles of marketing. Vol. 5 (2), 10-23. 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