The increase spending power of these consumers has been a key reason for targeting. The high GDP growth has fuelled and increase in Purchasing Power Parity (PPP) of the consumer. The PPP has risen 70% since 1998 and is expected to double by 2014 (MaruBeni, 2010). Figure 1 displays the rise of PPP compared to China.
There has been a great amount of foreign direct investment and outsourcing to India that has resulted in an emerging middle class. It is estimated that the rising of a middle class has a population of 300 million, which is approximately the population of America. As a result; an increase in consumer spending power, especially within our primary target audience. A younger generation with spending power are willing to purchase, splurge an indulge on consumer products more so then ever before.India- Boost Juice Marketing Mix Product Adapting to India's rich culture, Boost juice is required to make a few product adjustments to enhance its chances of success with the primary and secondary target market. The Indian consumer tastes will be different to the Australian consumer; hence we must integrate the many different flavours that India provides.
Incorporating fruits that are more popular and exclusive to India to Boost Juice menu must be essential. The following are popular Indian fruits that can be used to make smoothies, juices, and shakes:Boost needs to also take into consideration of having a seasonal juice menu. Indian fruits cannot be grown all year long; some fruits only grow during particular seasons i.e. Watermelons are only grown in summer.
Pollution is a crisis in India, with no recycling and litter being tossed away on the roads. Providing plastic cups to our Indian consumer has a high chance in resulting with Boost Juice cups being found on the side of the road amongst other trash. Overall this won't follow the companies "Loving Life & Loving the environment" core competency. Boost Juice has a large focus on the environment, and shows its concern through creating awareness about global warming and recycling through websites and advertisements.
There are two possible solutions, first of which is a product modification. A large portion of companies distributing drinks and juices are aware of the problem and have adapted the glass bottle as their main form of distribution. Glass cups or bottles are required to be returned to the retailer after the beverage has been drunk or if thrown away, there is a good chance young labourers will collect these glass bottles and return them for a monetary reward. Further India has cheap labour force that can clean and make glass cups and bottles reusable (recycling).
This system is already being applied by big companies such as Pepsi & Coca Cola, and could be a feasible solution to Boost Juice to redistribute there juices through glass bottles rather then plastic cups. The second solution to being 'Green' will be discussed under promotional strategy.These locations were chosen to assist our targeting our target market. Major Shopping centres were chosen because they help identify with the financial independent, young to middle high class individual.
Universities will attract young, enthusiastic students, who have access to the internet (marketing online campaigns). Health centres, Gyms and parks were targeted to attract health/body image conscious people. Boost Juice will be avoiding local markets and low profile areas, because of local competitors and not reaching our desired target market.Promotion Boost Juice will have three prime promotion strategies.
Advertising Advertisements will be the opening strategy to create initial brand awareness of Boost Juice. The company will be focusing on above the line advertising in magazines, newspapers, billboards, and possibly television if the budget is big enough. Boost Juice should focus on aligning there advertising efforts with companies that their target market can link to. Targeting health and exercise magazines or promoting on MTV to reach the younger, enthusiastic, vibrant consumer.
ViralAs we have seen over 2010 with brands such as Old Spice and Nike, viral marketing campaigns have been very successful and can bring immense business success if done correctly. Traditional advertising is become less viable as a medium and only brings in around 18% of ROI. A good viral marketing campaign is able to bring up to 78% on ROI. Boost Juice plans on creating a series of creative online advertisements that will be primarily promoted on YouTube; shared through Facebook and Twitter.
As stated our target market are tech friendly and use social media networks. The video would be placed on the YouTube Homepage, and be promoted on side bars of the website. If successful 'word of mouth' will quickly translate to 'world of mouth' as friends share the link to each other and talk about the video through social networks. This will be reaching our primary target audience and will be very effective in creating brand awareness and ROI if the online ads are successful.
