Marketing strategy of Boost Juice
- About Boost Juice
- Boost Juice Market Statistics
- Market analysis of Boost Juice company and beverage industry
- Boost Juice Marketing Strategy
- Recommendations to the company
A company is known by the name and stand that it builds for itself in the market and among its competitors. Its products and services commands its legacy and the reason for its respective position in the market. Same is the case with Boost Juice company. It is recognised as one of the most popular juice companies in Australia.
About Boost juice
Boost juice is a famous company that comes under the scope of the food and beverage industry of Australia. It was found in the year 2000 by Janine Allis at Chadstone, Melbourne as a subsidiary of Retail Zoo. The idea of opening up this business came from the United States when Janine visited the country and saw the trend of juice bars. She brought this idea to Australia and opened boost juice. Within the four years of incorporation of her idea, the company expanded to 175 stores in Australia and New Zealand. However, its stores in New Zealand could not produce much business and were sold to the juice brand-Tank, in 2006. On the other hand, the company started expanding its business in other countries such as the United Kingdom, Chile, Singapore, and Thailand etc.
Boost juice has its main products of juice and smoothies. It has even clubbed with major food brands such as Nestle in 2008 to launch a range of fruit smoothies in the UK. However, the company faced difficulties in expanding to China due to various issues including quality of products and delays.
Though, it managed to expand its business in India in the year 2014. The company now has its business in developed as well as developing countries and now has 550 locations where it services its products to definite customers. Further, the company has shown concerns about environmental sustainability. It has taken various initiatives for reducing environmental impact, which lists the environo cup in 2017 and then stainless steel cup in 2018. Thus, the company is growing day by day under its vision that “every customer leaves boost juice with a feeling just a little bit better”.
Boost juice Australia market statistics:
The company has an annual turnover of approximately AUD 135 million per annum and the numbers are increasing every year. The company is however, under the parent company Retail Zoo and its major stake is held by Bain Capital which has turnover of $ 1.35 million per year. Also, Retail Zoo is expecting to grow in the future and reach the network sales of 4448.1 million in the eyewear 2020. This will represent 0.6 percent growth in sales (Thompson & Macdonald, 2020). Further, Boost juice Australia is expected to contribute $34.1 million EBITA which makes the company a bigger earner than any other subsidiaries of Retail Zoo. In fact Boost International is likely to contribute $2.2 million in total turnover of the company. This shows that the company is dominating the Australian market and is expected to grow in further years.
Market analysis of Boost Juice company and beverage industry:
Boost Juice company has its business in different countries which needs an effective marketing strategy to promote its products. This generally involves the strategy to advertise products, pricing of products, distribution strategy etc. This section analyses the various marketing strategies used by Boost Juice with the help of various tools.
Marketing Mix of Boost Juice
The main products of boost juice are juice and smoothies of different flavors. The drinks types also include blended and crushed drinks. The products are also divided in the category of health benefits under which the company provides lower calories, dairy free, gluten free products as per the requirements of the customers. The products include banana buzz, berry crush, cookies and crème, coffee dream, immunity juice etc. (Boost Juice Menu Prices in Australia, 2020). Boost juice is focused towards maintenance of nutrition and the health of its customers by providing them juice as per their preferences.
The Company is known to provide quality juice and smoothie’s products to the customers. This is the basis of the pricing strategy of Boost juice. The company has an affordable and competitive pricing strategy where the prices of juice start from $6.10 and varies to $9.20 (Boost Juice Menu Prices in Australia, 2020). Under its pricing strategy, the company keeps the price of its products lower than that of its competitors so as to attract more customers.
In order to circulate its products worldwide, the company has adopted an extensive distribution strategy. Under this the products are made available to customers through its own stores as well as at major retail stores. Further, the company has expanded its business to many countries. It has 550 stores under its distribution strategy to gather a larger market share. Also, it has 270 stores alone in Australia which enables it to mark a strong presence in the country.
Promotion is an important element of marketing mix. It is important to create customer awareness. Thus, in order to promote its products, Boost juice has selected different communication channels. The company has its presence on social media such as Instagram and Facebook. On these platforms it posts different pictures and videos related to its products, customers reviews , contests, to update its customers about the brand developments.
Further, the company also uses other advertisement tools such as television, banner, newspaper etc. in order to promote its products among customers. This shows that Boost Juice has an aggressive marketing strategy to promote products so that customer awareness and attraction can be enhanced.
Boost juice STP
Boots juice has provided a wide range of products to customers. Its variety majorly includes fruits, vegetables, coffee etc. and also various calories. Thus, it also covers a large market segment and provides different products to fulfill the needs of its customers. The STP approach will help to highlight the target market of the company:
The Company has divided its market customers and the basis of demographic, geographical and behavioral aspects. Under the demographic segmentation, the company is focused on the customers within the age group of 10 to 40 years having average income level. The geographical segmentation includes customers of more than 30 countries. Among these, it has a major focus on urban regions. Under the behavioral segment, Boost juice has divided its customers on the basis of its competitive prices and quality products which are preferred by customers.
The Company has its major target market as teenagers and adults who are more health conscious and want energy drinks with low calories and sugar. The company targets this segment through healthy and nutritious drinks. The target market involves all the genders and people with average income level.
The Company has positioned itself among the customers on the basis of its quality, variety and price. The competitive prices and healthy drinks are the main elements that helped the company to differentiate its products and gain more customer base as compared to other fresh juice companies in the market of Australia. Following positioning map represent the position of Boost juice as compared to other competitors:
Beverage industry analysis using PESTLE and 5 forces model
Beverage industry has surely been one of the most revenue generating businesses of the world. This industry provides a large number of opportunities to its customers and service providers. This is the reason it is emerging as a platform with high growth potential. This section details Porter's Five Force Analysis. It is a great methodology to analyse the market potential of the respective industry.
Threat of new entrants
The threat of new entrants in the beverage industry is less due to many reasons:
The presently operating organisations enjoy cost and performance advantage. This is due to the fact that the existing companies have a strong reputation in the market. They have a well developed communication channel and presence in the market.
There are better chances of the established companies to introduce new products and services due to their established name in the industry.
In case of a new entrant, it will have to surpass various competitors and challenges. Most importantly, it shall find it difficult to take control of the distribution channels.
Threat of substitutes
This particular section has high potential. It is due the following reasons:
There is a high probability of new entrants coming up in the market. It is generally due to the high business growth prospects of the business sector.
There are chances of customers shifting to other products due to their low price strategy. Many customers give high importance to the money factor, due to which they can switch to the new products.
Also, some people like to try new brands, which increases the level of threat
Bargaining power of Suppliers
The bargaining power of suppliers is comparatively low in the beverage industry. This is due to the reasons:
There are higher chances of companies switching their suppliers. This makes it difficult for the suppliers to put their say in front of the already established companies.
There is not much pressure of competition in the beverage industry. The suppliers category generally include the manufacturers of the bottling equipment and companies providing packaging materials.
The number of companies providing these products is high, which reduces the bargaining power of suppliers.
Bargaining power of Buyers
Buyers enjoy a high stake in this industry, due to which their bargaining capacity is also high. It is due to the following reasons:
The buyers here refer to the young generation who is interested in trying new beverages. These people always look for some different taste, as per their choice. This is the reason they have an upper hand on the price strategy.
Also, the change in price by the supplier can result in change of the brand by the buyer. This is why the suppliers are always very careful of not increasing the prices of the beverages.
Earning the loyalty of the buyers takes years of quality delivery. This is why, any change in the price or taste can prove fatal for the brand and its image in the market.
Rivalry among existing players
The competition in the beverage market is high due to which there are more chances of rivalry among the existing players. Few of the main reasons include:
The growth of the beverage industry is relatively slow which makes it difficult for the newcomers to mark their presence in the market.
There is a great importance of brands among the buyers, due to which the existing brands always enjoy their legacy. They have an edge over the new entrants or the competition, due to its popularity among the users.
Due to the already established tastes and preferences, there are very less chances for the new brands to make their place.
Boost Juice Marketing Strategy
Boost juice is one company which has made a significant mark in the beverage industry. Its constant rise in the growth numbers is one proof which makes the company’s growth evident. The brand has grown from its owner’s kitchen to the international market. One highlighting reason for such impressive growth is the effective marketing strategies of the company.
Boost juice has always been very choosy about the kind of strategies it employs for its marketing activities. In fact to attract the interest of its customers, the company adopts unique marketing techniques. From innovating new product ranges to making Boost juice a supermarket brand, the company has used various marketing strategies.
It follows above the line and below the line marketing campaigns. This includes the marketing platforms of social media, television, radio, direct mails and an engaging website. The company even has a very interactive app for smartphone users. This application helps the company to form a direct contact with its customers and keep themselves updated with the help of feedback.
The company even promotes local area marketing. It does this with the help of various local vendors, who adapt their personal marketing strategies to invite more customers for the brand. Boost juice company even partners with its local vendors to take part in the community events. This includes clubbing with school fundraising, associating with gyms and clubs or other social events. To make the participation even more attractive, it has a big green mascot named Barry. This way it gets even easier for the brand to gel up with the youngsters and spread its alliance with the use of warm hugs and smiles.
Popular marketing campaigns by Boost Juice
The company produces a yearly calendar for the marketing strategies every year. This is done keeping in mind the likes, dislikes and the upcoming patterns of the industry. It also makes sure that the interests of its customers are given due respect. Few of the famous marketing campaigns run by Boost juice company are:
In order to increase brand awareness and in store sales boost juice conducts a number of national marketing campaigns every year. All these campaigns are conducted in accordance with boost juice’s national marketing calendar. It lists the different marketing campaigns to be conducted within a particular year.
Here are some popular marketing campaigns conducted by Boost Juice:
Boost Vacay is one of the most interesting and loved marketing campaigns conducted by Boost Juice. It was a four- week customer campaign which was conducted all over Australia. It gave every customer who purchased a boost drink, a chance to win exciting prizes such as a trip to the weirdest places on Earth like Dracula’s Castle in Romania and unique experiences across Australia like Crocodile diving in Darwin. All these exciting prizes grabbed the customers’ attention and the marketing campaign gained a huge popularity.
Protein Super Smoothies
Protein Super Smoothies were dedicated to help customers replenish their energy in the harsh winter season. These smoothies were added to the protein range of boost juice. Customers could choose from any of the three flavors namely- Power Plant Protein, Choc Muscle Hustle and Yo’s Berry Best. The Power Plant Protein smoothie contained creamy, earthy mix of fruit and plant protein. Whereas, Choc Muscle Hustle was enriched with chocolate, whey protein and Yo’s Berry Best was enriched with berries, whey protein and coconut. The ingredients of all these protein super smoothies were so selected that they were 100% healthy for the customers, rich in protein and a treat for their taste buds.
Find the Fruit
Most people love playing games. Thus, Boost juice created a marketing campaign which could align with people’s love for gaming and named it as- ‘Find the Fruit’. It was a gamification app wherein the players helped the game hero Janine to find the fruit ‘fruigitives’. After collecting an abundance of fruigivities the players could trade their game score for exciting boost vouchers from boost juice. Find the Fruit was available for both android as well as iOS users.
Digital presence of Boost Juice
Good customer experience is what makes a brand come to life and Boost juice knows it well. They have started a number of digital initiatives to offer extraordinary customer experience to their customers. They not only reply to their customers’ queries and questions on social media but also post relevant posts for them. Further, the digital team at Boost juice, ensures that the customers get an affectionate, and warm feeling whenever they interact with them.
Given below are some insights into the Digital Bits utilized by Boost Juice:
Social Media has become an integral part of people’s life. People of all age groups from kids to adults are actively present on various social media channels. So, Boost Juice utilizes various social media channels to communicate with its customers. It has 750,000 Facebook followers and 100,000+ followers on Instagram and YouTube. In order to make things enjoyable for the followers, Boost Juice shares memes, jokes and interesting information on its social media accounts. This way, Boost Juice attracts and stays connected with customers through funny, enjoyable social media activities.
The Vibe Club
Vibe stands for- ‘Very Important Boost Enthusiast’. If customers get themselves registered in the Vibe club, they get exciting offers and free products. For example, vibe members get a boost free after buying 10. Not only this, vibe members also receive a free boost on their birthday. It is because of all these benefits that the vibe club has more than 1.9 million members in Australia.
Boost Vibe newsletter
After every quarter, boost juice sends a newsletter to all the vibe members. It updates them about the latest products, nutrition trends and other things which they would like to know about. Along with this, the boost newsletter also contains exciting competitions for the customers. This makes it an enjoyable read for them.
The Boost App
The Boost App is another digital platform which enables boost juice to strengthen its relationship with digitally savvy customers. Just like vibe card users, the users of the Boost App also receive a number of benefits. One such benefit is that they don’t have to wait in a queue to collect their customized boost. They just come to the store like VIPs and receive their boost without any waiting or lining up in a que. Further, the app also provides the customers an opportunity to share their honest feedback with boost juice. These insights are then utilized by the company to solve potential issues and enhance the customer experience. It is because of all these benefits and features that today more that 65% of Boost Juice’s database is made up of app users.
Recommendations to the company
Boost Juice is an ever growing and loved brand among the people of all origins. Along with enjoying a great reputation in the beverage industry, the company also faces strong competition from companies like Bars Est and Top Juice. Following are the few changes that the company should adopt to beat its present and future competitors in the market.
The company should plan to expand its business in the food sector as well. This will increase the diameter of its profit umbrella.
The company should consider opening new retail counters. This could be near the crowded areas including the market, college locations and the beaches.
The company should work upon its internal strategies to make sure there is the right projection of values to the customers.
It can also provide better training facilities to its employees to ensure there is smooth transaction of business and services between the company and the customers.
The Boost Juice company can take advantage of the technological developments. This would help the company form a better alliance with its existing and potential customers in the market.
Boost juice as a brand has evolved strongly over the years. It has proven to be a strong entity in the beverage industry of Australia and Globe. Its freshness in products and marketing strategies both have together paved the way of success for the company. However, this is just one domain the company currently deals in. To sustain its positive growth, the company can plan to expand in other food related businesses. This can help the company grow with better prospects and plans for the future. Also, it can help the company to expand its clientele in different parts of the world.
Boost Juice Menu Prices in Australia. (2020). Boost Juice Menu Prices in Australia (2020) - Aussie Prices. Retrieved 15 July 2020, from https://www.aussieprices.com.au/boost-juice-menu-prices/
Thompson, S., & Macdonald, A. (2020). Retail Zoo valued at as much as $482m: Goldman Sachs. Retrieved 15 July 2020, from https://www.afr.com/street-talk/retail-zoo-valued-at-as-much-as-482m-goldman-sachs-20191001-p52wgs
How is boost juice socially responsible?
Boost juice as a company takes good care of its corporate social responsibility. The paper cups used by the company presently are manufactured by using a renewable source. Further, they are printed with non- toxic and safe for food inks, which do not cause any harm to the environment.
What type of business is Boost Juice?
Boost juice is a part of Retail Zoo business. It serves juices and smoothies to its customers in 14 different countries of the world.