Boost Juice Company - Employing Integrated Marketing Communication Concepts - Example

Boost Juice Company Executive summary Boost Juice company is know to be the world’s largest organization which offers quality drinks, the company has expanded its operations due to high standards of hygiene which they maintain while offering their services. The first Boost Juice company was started by a lady know as Janine Allis who is also a CEO of the company. They opened the first store in Adelaide: Australia in 2000, the company started to open in high rate after two years, it was said that the stores was opened at an intervals of four days. To date, the company has been the leading growing franchise chain in Australia. The company has created good relationship with all kinds of clients i.e. employees, customers, suppliers and other bodies which might deal directly or indirectly with the company. This has enabled the company to remain the leader in the market despite of high competition. The company has been using various strategies when carrying out their business, for example the company normally carryout market research before they come up with new projects. This is a very effective marketing skill which needs to be practice by any organization. Boost Juice Company normally uses integrated marketing communication (IMC) because it is a powerful marketing tool which focused on the customers’ preference, lifestyle and attitudes. IMC has been like motivational factor which motivates customers because it caters all needs through the advertisement. This tool has replaced old means of advertising through TV, because TV is no longer effective since people are used and they then not to take them seriously (Kotler, 2009). The existing campaign in Boost Juice Company is the expansion program; the company is expanding its market they serve. This can be done by offer quality fruits which contain variety ingredients and vitamins in it. They have also packet their fruits to cater all the classes of the customers. They have some fruits that are specifically designed for kids, adults and even for sport people. This has enabled the company to serve variety of customers which has increase the size of the market they served (Kotler, 2009). The company has been researching on the consumer behavior, though it has been somehow complicated especially for the companies. The company normally uses the customers feedback so that they could identify the areas which needs to be improved, customers are given chance to comment on the services they receive from the company. This is done by giving customers some forms to fill. The company is also working on packaging of the product which will create positive picture and create the right attitudes in the mind of the consumers. The company is has been using the Integrated Marketing Communication concept which they major on the sales promotion, public relation and budgeting for all the programs being carried out (http://www.amazon.com). Business and Marketing Plan Company analysis The current marketing plan of a Boost Juice Company is going to cover the financial year 2010. The Boost Company has established various branches all over the world and it is planning to provide a variety of juice products to both the middle and upper class consumers. So as to compete effectively in the market, this business is planning to provide a variety of juice to several individuals depending on their tastes and preferences (http://www.pr.com/press-release/177120). The business will conduct a research to find out the brands which are preferred by many of the prospect customers and then it will major on that product, this will assist the company in achieving its objectives and goals. Two brands will be developed depending on the class and the ability of individuals to purchase these brands. The first brand is the king brand which will target those in the upper class in the society. This type of brand will be different from the others because of its contents and the ingredients. The company projects that it will also use unique packaging techniques so as to differentiate these brands and make the king brand more appealing for the customers to purchase it. The lesser brand will be meant for the lower class and the medium class. This brand is not as sophisticated as the king brand but will be wrapped in a simple manner and the ingredients will be limited. This brand will only serve to satisfy the urge for an individual to drink but will have no other prestige factors attached to it. The business is going to also conduct a research as to the strategies that it will apply so that it will rise in the market and compete with the other firms. Due to the stiff competition that the company projects to obtain, a thorough research will be conducted so as to find out the strategies that other business use and to try and go even higher than them (Kotler, et. al., 2008). The juice business has been facing several problems over the years. Perhaps what has contributed the most to this problem is the perception by individuals that juice are not healthy for consumption because they have side effects on the body of individuals. With the rise in use of technology and utilization of differentiation techniques, there is a high demand for various brands of juice today because they have been declared safe and fit for consumption (http://www.boostjuicebars.com) So as to make the customers to be confident about the product, the business intends to launch a program which will be meant to educate the users of this product. This program will entail bringing the prospect customers together and informing them about the effects of the product as well as the positive factors that are attached to the product. The program will be aimed at making the individuals to demystify beliefs that the product is harmful to their health. The program will also educate individuals on the types of ingredients that are used to make the products of the company and the effects of each of the ingredients in the body of individuals (http://www.boostjuicebars.com) Company analysis So as to determine the competitive advantage of this company within the target market, a SWOT analysis will be a very essential component in the strategic planning process of the business. A SWOT analysis will be used to describe the strengths, weaknesses, opportunities and threats which the business will face and how it will react to them. By recognizing its strengths, the business will be able to rate the performance of its product in the market and identify the issues which make them to excel. This tool will be of great importance in further development in areas of weaknesses so that they can meet the expected goal. The weaknesses are a source of challenges to the company because they will give the milestones which the company is facing presently or that which it is expecting to face in future. Getting to know about the opportunities of the company will help the company to identify and develop the best strategies which are aimed at exploiting the available opportunities so as to meet the goals of the company. The weaknesses of the company are important because it will make it easy to avoid such areas which are deemed to be a source of reduction of profits to the firm. The following SWOT analysis will be used by this juice business (Westbrook, 2007). Strengths Highly recognizable brand name. The business expects to have a brand name that will distinguish it from the rest and make the prospect customers to identify them very easily. The location of the business in Australia is strength because of the presence of technological advancements and knowledge of the use of these products. Australia therefore offers a better global location presence (Westbrook, 2007). The strong advertising and promotional campaign which will be influenced by the use of the internet will benefit the business in a very great way. The business expects to have a variety of juice products which will appeal to several individuals in the market. The uniformity/similarity of quality across the geographical locations is also the strength to the business because the business will be able to obtain a stable market. Weaknesses The lack of differentiation of the products i.e. lack of development of innovative products which would suit their customers might be a weakness to the business. The constant changes taking place within the society might be a hindrance to the development of this business. The lack or poor application of marketing strategies and actions might lead the company to position its product in the market in a poor manner. The negative press and media associated with juice and the bad attitude from many individuals about the product can also be a weakness for the business (Westbrook, 2007). Opportunities The beefiness is expecting to utilize the current trends in technology which involves the use of current gadgets for production of quality products in the market. The business expects to apply innovative techniques within the product development and variety of choices in store. The continued use of the internet will allow for the spread of information about this product quickly. The use of special sites like facebook, YouTube and twitter will be of great importance. Technology and innovation within the development of the product and during the process of marketing is expected to offer an opportunity to this business. Threats The continued inventions and innovations will be a threat to this business because if several businesses will utilize them, then the products of this business might be at a threat of being obsolete. The rise of many businesses which deal with substitute products might pose a threat because customers might consider the content of the products of these businesses and the costs that they have set for their products. The highly competitive and mature marketplace implies that every business is trying to meet there own goals which therefore pose a threat to the business. Because the business is dealing with a highly substitutable product, customers might consider shifting to these alternative products (Westbrook, 2007). Customers The juice business will appeal to the middle class and the upper class individuals in the market. The upper class consists of individuals who are considered to be earning salaries within the highest range according to the income classification of Australia. This group will be the main consumers that the business will target because they have the money to purchase these products. The King brand which will be the main contributor to the profits of the business will be suited for this group of customers. The middle class on the other hand will be individuals who earn relatively higher income according to the Australia income classification. The business will develop a brand that is aimed at meeting the demands of these individuals This brand will contain the necessary ingredients and will be sold at a friendly price that suits these individuals (Hennessey & Gillespie, 2009). Competitor analysis Competition is a phenomenon that cannot be avoided by any business. In fact for any business to thrive well, it needs to consider taking this aspect positively so as to be able to compete effectively in the market. The Juice business expects to face a stiff competition especially by businesses which sell various categories of juice. So as to counteract their strategies, the business expects to conduct a thorough research in the market so as to find out the best strategies that they can utilize. These strategies involve balancing the prices of their products so as to be able to meet the needs of the customers (http://www.boostjuicebars.com). The advertising and promotion strategies will also be considered in detail so that the business will excel in making the product penetrate fast into the market. One other competitive strategy that the business will use is positioning of its product so that it will have an upper hand than that of its competitors (Hennessey & Gillespie, 2009). Budget summary for the next 5 years The business expects that the budget within the next five years will follow the trend given below: Year One……………Expected sales will be $20,000. Purchases will be $ 16 Year Two……………Expected sales will be $40,000. Purchases will be $ 34 Year Three…………..Expected sales will be $54,000. Purchases will be $ 45 Year Four onwards….Expected sales will be $ 60,000. Purchases will be $ 51 From this forecasted budget, the company is expecting to get high returns on what they are planning to invest in this trading period of 2010. Organization structure Organizational structure comprises of the goals, the culture and type of personnel required in the organization so as to achieve the expected results. The goal of the business is to be the leading producer of a variety of juice to the middle and upper class individuals in Australia. The business plans to have a human resource department this is centralized so that all the activities are done in a central manner. This implies that when there is a problem, then it can be solved within a short time because the concerned parties will be located in a central place. The powers will be distributed in a horizontal manner so that the junior employees are expected to report to high authority and the climax of the hierarchy is the CEO who is the final decision maker about the case. The hiring and retaining process will be researched and differentiated so that a better way of handling the employees is used. Employees will also be given privileges like remuneration and promotions so that they can perform their job better. Economic consideration The recent decline of the economy especially in Australia influenced the development of the juice business in a great way. The prices of several products shot up in the market. This hindered the development of the juice business because people considered other products to be important than spending on juice. The perception of this commodity therefore hindered its development since a few individuals from the upper class were the only people who could afford to spend on these products. The shift of events lately in the economy will favor this business in a great way. The improvement in the value of the Australia dollar has been very profitable for the development of the juice industry in that people can now spend and get a surplus to purchase these products Marketing Strategies and evaluation The target market which this business will major its activities in is the middle and upper class individuals. The fundamental questions that will guide the business in coming up with the target market include ‘who is going to buy the product?’ and ‘who will be the customer?’ and ‘What are the segments in the market?’ The consideration of these questions will yield a very good segment that involves coming up with the right customer for the business. The business intends to conduct a lot of research so as to find out the type of customers who will be loyal and participate in regular offers that the businesses will offer (http://www.boostjuicebars.com). Promotion and advertising strategies to be used The business intends to use various forms of advertising so as to reach several segments in the market. It intends to use various forms of media so as to reach the target market. The business will conduct a research which will ensure that the right media that is more efficient and more reliable is selected. The promotional strategy that the company intends to utilize includes a chain of distribution that is well coordinated and that which can provide the right channel to the market that is targeted. The business further intends to use several forms of media like television, internet and radio for advertising its services. This is because these forms of media can appeal to so many individuals in the society at large. Once the promotional activities have been concluded by the business and many customers have made orders for its products, the business will start to actively sell the product. Implementation of marketing strategies The marketing strategies imply the four P’s which are very essential for the business to go on. The 4P’s comprise of all the factors which influence the product’s marketing and they include the pricing strategies, the promotional techniques which the business will use, the place and the nature of the product itself. These strategies comprise of both controllable and non controllable factors that a company needs to consider so as to achieve its goals. The business has a plan of putting in place strategies that are aimed at making sure the price which they charge is friendly to the customer and at the same time is able to bring the expected profits to the company. The business is therefore conducting research about the price that they will charge on their product, its strategy involving charging the customers prices which are lower than that of its competitors. The pricing strategy will be calculated by consideration of the break even point and profits calculated per units sold. For start, the business expects that customers will benefit from free samples and great discounts for purchasing of bulk products. This will boost the sales of the company and at the same time create a niche for these products The product of the business is juice. So as to be able to outstand in the market and gain reputation faster, the business expects to produce a high quality product and at the same time a variety of choice for its customers. A high quality product implies that the business is set to produce a product that is user friendly, a product which contains the necessary ingredients which does not harm the health of an individual. The place refers to the distribution strategies that the business will use when marketing of its product. Through research, the business expects that the best distribution strategies will be obtained so that the product can penetrate into the market in a much easier way. The business intends to set up warehouses which are strategically located so that the product will penetrate into several areas easily. Promotion on the other hand refers to the advertising methods which the business will use so as to make its products to be known. The company intends to use various media so as to reach its target market. A more efficient and effective media will be selected through performing a very thorough research and differentiation in the market. Timetables/schedules So as to meet all the criteria in the development of its product and penetration into the market, the business will follow the criteria below; Creation of the business and establishment of operating offices will be done within the first three months Product promotion and advertising will be done within the next seven months Initial selling will take place after one year where the company will give free samples and discounts for more customers to be attracted to these products Full selling will take place after two years and the business will now operate fully, the stage of the product expected to be at growth stage Gaining experience and coming up with ways of handling the challenges that come by will be done within the next four years (Harvard Business Review, 1991). Conclusion In conclusion, the company is planning to increase its business than ever before, offer their services all over the world. This can be achieved by employing integrated marketing communication concepts, this are the new marketing strategies which has replace the traditional methods of marketing such advertisement through media stations. Reference Kotler, P. (2009). Principals of marketing. Pearson/Prentice Hall Armstrong, G. and Saunders, J., (2008). Principles of marketing. Financial Times Prentice Hall Hennessey & Gillespie. (2009). Global marketing. Wiley India Pvt Harvard Business Review, (1991). Going global: Thriving in world markets. Harvard Business School Press Westbrook, R. (2007) SWOT Analysis: It’s Time for a Product Recall. Macmillan: Macmillan Press ‘Juice business’ Retrieved on 8th, January, 2010 from Read More