Question

Booster Juice International Marketing:

Identify Market Segments and customers for Booster Juice products. What would be the optimal entry strategy for Booster Juice in India? What would be the best marketing mix for Booster Juice in India?

Analysis of India's business environment and its potential impact on Booster juice's marketing strategy.

Should Booster juice follow standardization of adaptation strategy?

Answer 1

Answer:

Booster Juice

Why is Booster Juice not achieving greater success in India? (issues)

Inefficient use of some of the 4 P’s

Place/Location Challenge:

· People from all socioeconomic classes living together.

· Difficulty in choosing the right location for the target market.

· Unsuccessful initial location decisions- relocation expenses $35,000.

Price Challenge:

· Not many Indians can afford the premium prices of Booster Juice.

Products challenge:

· In Canada, Booster Juice offers the product in different sizes: Large, medium, and small

· In India: Only offer medium and small sizes at lower prices.

Supply Chain Management

· Not finding the required local suppliers in terms of quality.

· Had to import products from Canada – Extra Costs.

· Delays are due to importing processes.

Competition

· Indirect competition from local cart juice vendors.

Analyze India’s business environment

PESTEL

POLITICAL	E	S	T	E	L
The largest democracy in the world Runs on the federal government Greatly influenced by government policies Influenced by the politician’s interests as well as the ideologies of political parties. A lot of corruption	4th largest buying power Rapidly growing middle class GDP is about 7.46 billion dollars and estimated to grow to 7.75 by 2020 148th ease of doing business 186th enforcement contracts	A lot of 1.2 billion Consists of 28 states and 7 territories Complex social structure Diverse cultures, religions, and languages Mall culture The average age of the population in 2020 = 29	One of the strongest IT infrastructure in the world Served both 3G and 4G Technology is widely used Technological support and services are easily available	Poor air quality Presence of environmental pressure groups Early stages of recycling and waste material reduction process	Regulations such as minimum wage and gender discrimination

Identify market segments and customers for Booster Juice’s products. (issue, analysis)

Market segment

- Health-conscious

- Males and Females

- Healthy, great-tasting and convenient alternative

- Meal replacement

- Fast-paced lifestyle: Health-oriented, Busy, Active

Kids and families

With a significant purchasing power, they represent a fantastic opportunity as Booster Juices are healthy products that boost energy and have no negative connotations for kids.

· How to do this?

- School lunch programs

- School fundraisers

- Target families: May entice them to try Booster Juice products

Exercising and Athletic Market

Could be used as a workout snack or a post-workout meal

Celebrity endorsements

- José Bautista in Canada

- Cricket stars in India? E.g. Sachin Tendulkar

Positive associations

Middle and upper classes

Need to make consumers understand that prices are higher due to differentiating features

- Higher Fruit Content

- Lower Ice Content

- No Added Sugars or Preservatives

- Free Nutritional Supplement or ‘Booster’

- Using ‘superfoods’ like Goji and Açaí berries

Indian market

Target market: Young, health-conscious consumers, aged from 18 to 35

Main selling point: Offering a healthy, convenient, portable meal

Premium Product

Targeting upper and middle classes

What would have been the optimal entry strategy for Booster Juice in India in 2009? (issue, analysis, recommendation)

JOINT VENTURE	LICENSING	EXPORT	WOS
Booster Juice business type is not suitable for a joint venture Lack of control Lack of trust	Lack of control Can become a competitor after the license expires	High transportation costs. Perishable good Less control over Marketing & Distribution	High cost Complex social structure. Diverse cultures, religions, and languages.

What would be the perfect marketing mix for Booster Juice in India? (analysis, recommendation)

· Build brand awareness

· Maintain Booster Juice image in India

· Increase sales at current locations

· Encourage successful expansion in India

PRODUCT:

Use BCG Matrix to:

- Turn “Question Marks” and “Stars” into “Cash Cows”

- Keep creating new products and observe consumers’ reactions.

- Continuously take in consumers’ ideas.

- Keep monitoring the quality and inventory level of the “Cash Cows”

PLACE:

- Health-oriented, busy and active consumers => Commercial areas

- Children and families => Affluent neighbors

- Athletic consumers => Gymnasiums

PRICE:

- Premium product

- Competitor-based pricing strategy

-

PROMOTION:

- Increase brand awareness

- Informative advertising to promote brand, competitive advantage and quality image

- Sales promotion and Loyalty program for customer retention

- Involve local celebrities in their advertisements.

- Create campaigns through social media.

- Sponsoring of sport events