Boost Juice Bars (Boost, 2014) is an Australian food and beverage brand, which was formed in 2000 with the first store located in the capital city in the South part of Australia- Adelaide. This food and beverage business has been done well since the business has been expanded globally in Asia, Europe, and Russia and even in Middle East. Unfortunately, Boost Juice Bars stopped part of business in New Zealand in 2006 after the franchiser due to liquidation. The stores in New Zealand are sold to Tank Juice.
After a year reflection, Boost Juice Bars signed an agreement to re-start the brand in the UK. Nestlé began a range of fruit smoothies in co-operating with Boost Juice Bars since 2008 as so to expand internationally. From this time onward until July 2009, there have been stores operating in Australia, and some places in Asia. The Franchising contracts have been confirmed in Asia and Europe as part of a global expansion plan. Following by the next four years, Boost Juice got into a franchise agreement for providing the major supply to the whole India. By the end of 2013, the company had expanded into South America and some places in Asia.
The marketing strategy (Lusch, 1987) is collected from market research and product mix, in order to maximize the largest profit and maintain the stability of the business. The marketing strategy is basic cornerstone of a marketing plan. The marketing plan (Lusch, 1987) focuses on the idea of innovation by using brand new marketing mix to target the potential customers in the market. Most competitors are vending alike products. Between Competitors have strong competitions. One of the key competences is the innovative idea about new juice. The image of Boost Juice is the design of creating fresh, juvenile and healthy theme, so as to tempt more young people.
Competitor may duplicate Boost Juice Bar’s goods and plan; however, the royalty of brand is important. Even if Boost Juice Bar is glad with its present marketing campaign to hold its customers for instance the Vibe club program which the purchaser could obtain a cup of free of charge drink on their birthday. It is intelligent to make sure if customers have less interest in Boost Juice or their awareness regarding to the weak brand image. The life cycle in different stage or timeline is necessary to estimate the correct marketing mix to strengthen some customer’s insight. It is necessary to ensure to stay in customer’s mind.
Boost Juice Bar has a youthful and health picture, the market segment set on the young generation. Unfortunately, it is prudent to go back over its market segments. Inspecting the possibility on attraction from people age 18 until 25 is the most significant, as this group of people far more concerned their health and nutrition, in order to have a longer life expectancy. Young people sometimes are fascinated because of Boost cup’s design and even Vibe club Program (Boost Juice, 2014). Yet, fully grown customers tend to consider more on royalty of products whether benefits can be gained. Fresh and nutrition can offer vital benefit for body.
The advertising and promotion are fundamental with product differentiation.
Modernization is a key strategy that Boost Juice should across into its cup’s design and marketing promotion. Boost utilized a brand new method to connect fresh squeezed juice and nutrition together for the young generation. For the young people, they prefer to try new and special product; boost Juice has done excellence. Luckily until now, Boost has been using the same type of marketing tools more than five years, including publicity, media coverage and interactive website to represent the brand. One of the potential troubles of Boost Juice Bar may be facing is its old marketing message to its target audience or customers.
This is the main issue if customers still have strong tackiness to stick the old message to Boost Juice Bar’s brand. Hence, Boost Juice Bar re-think about its goal customers. Boost also re-plans its marketing tools to the objective customers. However now, Boost is necessary to pay more attentions by using a popular marketing method, known as E- Marketing, such as Facebook and Twitters. The social media have been acting a considerable function in many companies, including small and large firms. The marketing mix is now very useful for understanding Boost Juice’s target customer, young generations.
According to the survey I collected in a store at Macquarie Shopping Centre, the products of Boost Juice Bar mainly focus on health and nutrition. The following categories are the product range.
1. Smooth – Low fat smoothies.
2. Juice – squeeze from fresh fruit.
3. Complementary Product – healthy snacks (Fresh yoghurt and muesli bar).
4. Product in supermarket – juice, frozen yoghurt, and ready- to- eat snack (such as Low fat crunchy)
International Environment Analysis
The main purpose of Boost doing this analysis is to figure out the flaw and and strength. Boost Juice Bar has established a questionnaire on its website to find out the acumen and insight factors, in order to maximise the profit.
When started the investment of Boost Juice Bar (Boost Juice, 2014), the founder and Managing Director Janine Allis targets an innovative way of offering juice in the Australian market. The new kind of juice bars have to be unlike from the long-established grocery store style juice, as well as the idea of juice bars in the US existed for more than 15 years. Earlier than Boost Juice existed, there were over 2000 juice bars in the US. Janine had an insight to believe that Boost Juice would have the capacity to have more than 500 branches. According to an interview with one of the store managers of Macquarie Shopping, since 2000, Boost Juice Bar was the only one brand that had the most and biggest expansion in Australia. Boost has had around 90 stores in 2004. At the same year they qualified the number 2 leading brand VIV A Juice, which means keeping the fresh and good quality fruits. After the combination in 2000, Boost had total about 124 stores.
Nowadays, Boost Juice Bar has further 300 stores worldwide. Boost Juice Bar is successful on its inventive concepts with healthy and good taste. The fruits are squeezed into juice and smoothie for being a particular product. The original and normal styles of red and green colour give customer the thought of the product which is good for health. This is very strong brand recognition. Positive and energetic staffs serve the juice with bright smile; even speak out customer’s name loudly. These can force Boost to be particular with the other competitors. The product and sales are vastly generated to form a young and create active mood to attract younger. Aside from the customer’s royalty program (Boost Juice, 2104), Vibe Club card can keep hold as many as customers Boost can, for instance the members of Vibe club card could get a cup of unpaid drink on their birthdays.
Before the development of Boost Juice, Janine Allis was a Journalist; the work experience offered precious acquaintance on business practice, in particular management. Moreover, her husband, Jeff Allis worked in a radio station that a platform enables Janine to have better understanding on Boost’s target audiences. The background of Jeff has in radio industry enables them to use marketing tools for promotion (WR,1956). Boost Juice acquired VIV A Juice Bar in 2004, they employed VIVA Juice Bar’s creator Simon McNamarra being CEO, from another juice industry (Boost Juice, 2014).
An extra factor could not be uncared is franchise system for expanding its stores. The franchising system allowed Boost to enlarge at a relative small cost whereas franchisees had to invest for installation for each shop. Actually, this helped Boost with the economic stress; meanwhile the joint fee of each shop has to shell out to the head office each year so that Boost has earnings by supply the material and charge shops from administration fees. This is a steady capital from the head office that could pay out on the promotion and advertising.
The theme of Boost Juice Bar was healthy and nutrition food (Boost Juice, 2014), provided to customers. Boost has to deliver this message to people that health is very important now. The mainly focus is not only taste and healthy drink, but also forms an active and fresh image. By various campaign, included off-lines or even online through the entire year, Boost Juice received strong attentiveness in the public such as Poster and advertisement on TV.
External Environment Analysis
In fact, the old juice industry has been at the maturity stage, since many juice shops had to convent into grocery stores for stay alive. Even though Boost created innovative idea of healthy juice drinks, happened from its first shop in south side of Australia- Adelaide, the smoothies juice bar are about to arrive at the stage of maturity. The external situation analysis concerned the external opportunity and threats that might influence the juice business. The threats included changing in society, demography and culture, change in economy and technology, competitor’s activities, and rule and regulatory.
For the time being, the direct competitors of Boost have less action against to its market share. Actually, competitors could duplicate any of Boost’s products, but they are not enough to handle Boost Juice’s branding positioning. The problems may be arisen from the main location in the business areas that the district of Boost Juice’s retail shop could not attain. This provides an opportunity for the small competitors. For the change influence in cultural and society, people are far more anxiety on their health, they care about the amount of nutrition.
1. Product’s development.
2. Strong spotlight on promotion (advertising campaign)
3. High customer royalty
5. well-built ability to link with customers
1. Heavy concentrate on promotional activities lead to high marketing cost
2. Sales decline obviously in winter time
3. Lack of further development in product in recent year
1. Without robust competitors directly
2. Health conscious
1. Many roundabout competitors started selling smoothies products. 2. Customers may have less interest over the time changed.
According to the survey I collected from Macquarie Shopping Centre store, there are some possibilities of target customers of Boost Juice, including regular households market, young, teenager, and healthy diet eaters. Boost need to analyse and develop products to meet the stratification from various customers’s needs and wants. Housewives in regular household market purchase juice for their families weekly or monthly. The juice product is necessary to be healthy, high in vitamin and fresh for the family. For the young people with age approximately between from 18 until 25, some of them prefer good-looking packaging to meet their idea that “perfect and exciting eat”.
Some of them would begin to think of relatively healthy way, which is supportive to their bodies. The cup’s design of Boost is completely fit for those two above types of people. For teenager with age between 15 and 18, they expected the juice drink not just tasty but also fun and attractive. They are likely to buy the prestige other than the actual product. The good taste smoothies drink and nice-looking package of product is the important keys to this group of customers. For healthy diet eaters, they would look deeply to the ingredients of products. They will look at the quality of product more than the design and appearance of the product.
The marketing objectives are integrating marketing communication campaign, the marketing objectives of Boost Juice Bars could are target customers with aged between 25 and 35, which has higher ability of income to consume better quality products, as well as engage with new customer and retain the current ones by the social network.
The marketing schedule of Boost consisted promotion and advertising, braining new ideas regularly, and seeking new customers through interactive program to connect with customers.
Marketing Mix is about what to use unlike marketing tools to meet the goal (WR, 1956). Normally, Marketing Mix is the mix of 4Ps (Lee, 2009). 4Ps are about the features of products; Price is how to set up the price strategy; promotion, such as advertising and public relationship; and place such as locations which is very critical in retail business. Product differentiation was very significant (WR, 1956), so innovative needs can be frequently carried out. Those factors were fraction of a general scheme of competitiveness. Being the most accepted smoothies in the market for over 11 years, customers who love trying new things; innovation could hold customers. In order to create a centre of attention of the new age level of customers from 24-35, TV commercial is significant to make awareness to people. The alternative factor is social Network, such as Facebook. None of people deny such social media became the most popular marketing tool for companies to interact with their target audiences. Boost Juice should post more posts on Facebook and uploading up the “Today’s specials” on Twitter account.
By not only utilizing those as a stage to keep contact with customers, but Boost also update customer’s needs for improvement. Boost’s target market are chiefly young people within 15 and 25, the rate of using social media is extremely high. The cost should be demonstrated effectively by using free media source, such as Facebook’s Page and writing blog. One of the 4Ps – place, this can also be location. As mention before, Boosts are mostly residing in the high quantity of customers in business areas. These absolutely make attention more on customers; however, the cost of problem is very high. Hence, this do not fulfill as many customer’s wishes as possible. The potential approach in the place is special designon public transport, such as mini bus and taxi, which is like concept to Munch Lunch Van. Customers have to give a call for service in advance.
The mobile van can go to the place where shop is not nearby. Doing the juice business, Boost should treat each product’s price as a standard. A price cut may cause low quality for ensuring the quality of product offered. On the other hand, the cause of Boost Juice has pretty high proportion of marketing expenditure and leasing cost. Hence, Boost tried to provide more benefits to customers. For example, free drink to allocate on street for promotion. The price discount could be offered in the alterative way. Something like buy 2 gets 1 free or jumbo size can enlarge the sales for profit margin.
Product Differentiation and the Product Life Cycle
In a market, there are many companies are all making related products; product differentiation is a real approach to analyse (WR, 1956). Refer to an academic journal (GS, 1981), extensive reference have been made; Armstrong, Brown and Adam had pointed out references detailed points. The product life cycle illustrates the alteration of a product from development and popularity, follow by maturity and even decline (GS, 1981). Boost illustrates the outlook of its business through product life cycle, in order to keep the position in the market and maximise the profit. The 4Ps comprise (Internal Marketing, 2004) the Product to understand product’s special and exclusive features, Price is referring to pricing plan), Promotion is about how to let people know the product, such as advertising and public relation, and Place is about distribution that the quality product allocated to different branches. The branch with more customers should have more sources to produce more products.
Measures of Success
According to an interview with a brand manager, the marketing research company called ACNielsen, which has been working in the area of media, entertainment, finance, and hospitality, revealed Boost Juice operated several countries and served variety of industries, adjust Boost’s needs to measure its marketing outcome. The professional research of companies provided definite view of what is going to be happened. It has a leading of role in sharing of information in TV commercial. The methods of collecting data consisted retail forecast, consumer panels, and marketing investigate. Also common work included merchandising in goods, modeling and analytics, decision marking, and merchandising goods.
Social media is now being a new marketing tool to hold with customers preferably. Boost Juice maintain innovation as the main type of competence. A qualitative study is necessary to move toward with Boost Juice that the audience is necessary to recognize the right view.
For being successful, Boost Juice can not be described as lucky. When it comes to the founder Janine Allis’ passion in providing healthy and nutritious drink to this country, she is smart to target on the brand positioning to the right target customers by using the correct marketing tools. In overall, Boost is still having large room for growing, unfortunately, over the time passed by, the external environment, such as target customers are changing. Parts of fans have already become mature. Boost Juice Bar have to be more innovative deal with the problem of market change to preserve existing customers and attract more new customers.
Boost Juice, 2014, < http://www.boostjuice.com.au/>
GS Day, 1981, “The product life cycle: analysis and applications issues.” The Journal of Marketing, vol.45, no.4
Internal Marketing website, 2004,
Lee Goi, Chai, 2009, “A Review of Marketing Mix: 4Ps or More?” International
Journal of Marketing Studies, vol.1, no.1
Lusch, R.F., and V.N. Lusch, 1987, Principles of Marketing, Kent Publishing Company, Boston, Massachusetts
WR Smith, 1956, “Product differentiation and market segmentation as alternative marketing strategies.” The Journal of Marketing, vol.21, no.1