Brand Portfolio of The Better Drinks Co

Charlie’s group limited is a producer of beverages drinks which was founded in 1999 and is headquartered in New Zealand. The organization was established by three friends Marc Ellis, Stefan Lepionka and Simon Neal. The organization is well known for its brand value and its reputation for delivering fresh juice unlike competing brands that sell juices which are added with concentrates and preservatives. The company got listed with the New Zealand stock exchange in 2005 which was considered a major milestone for the firm. Since then, the business has broken various geographical barriers and expanded its reach by catering to a mammoth number of customers across the globe.

The mission of the firm is to deliver three Cs which the firm creatively announces as its vitamin Cs. These include Commitment to listening, acting and recognizing, Creative in making things happen and commercial selling for more. 

The goal of the business is to continue delivering ‘better’ quality products to its customers and build a strong brand that is winning at home and overseas. The organization also aims to expand its boundaries and enhance its target market while maintaining the values of honesty and integrity in all business operations. 

Different brands of products offered by a single organization collectively form the brand portfolio of the organization (Kotler, 2015). The brand portfolio of ‘The Better Drinks Co’ includes five leading brands. These five brands are as below:

1. Charlie’s- This brand was started with the intention to sell fresh orange juice and has now expanded its product line to quenchers, smoothies, juices for kids, honest fizz, iced coolers and honest water.
2. Phoenix- This brand sells organic drinks including juices, sparkling juice drinks, organic energy drink and soft drinks.
3. Juicy Lucy- This brand predominantly sells orange juice to select locations including limited supermarkets and food service industry.
4. Real Iced Tea- This brand sells peach and lemon flavored iced teas which are also available in green tea and citrus tea formats.
5. Stash Tea- This brand delivers truly precious and highly expensive black, green and herbal tea which has been sourced from all around the world.

A new coffee brand must be launched with two products. Green Coffee and Black coffee. The coffee would be available in caffeinated and decaffeinated forms. They are both cool coffees and can be consumed on the go.

New Zealand has one of the richest coffee cultures in the world. The coffee per-capita expenditure of Kiwis is $37.3. A growing trend of making sustainable choices is also seen in the Kiwi culture. Customers are widely getting influenced by the sustainability of their purchase decision. The leading coffee brands currently operating in New Zealand are Javvah, Bushells, Café Aurora, Nescafe, Robert Harris, Special blend and Pams. All these brands have a leading name and have been well accepted in the New Zealand market.

The better drinks company has a clearly established its target market within the whole of New Zealand as well as outside. The target customers of ‘The better drinks co’ include:

Targeted segment	Customer Need	Product Features or benefits
Kids	Tasty breakfast companion	Nutrition, Vitamin C and healthy
Health conscious people	Energy for maximized performance	Low on sugar and high on vitamin drinks
Office goers	Evening energizer	Refreshing and healthy drinks
Home makers	Providing an evening drink to family	Refreshing and energizing drinks.

Competition for refers to the other players within the same industry who are catering to the same target audience as ‘The better drinks co’ (Wilson & Giligan, 2012). The competitors for the better drinks co are as below:

Company	Brands
Frucor	Just Juice, Simply squeezed, fresh up, McCoy, GForce, Allganics, Supreme and Arano Juice.
Coca-Cola	Kerl and Thexton’s
Heinz	Golden circle
International brands	V8, Ocean spray and Ribena
New Zealand brands	Nekta, Teza and TI

1. Strong brand value: One of the biggest strengths of ‘The better drinks company’ is the strong brand value that it holds in New Zealand and other countries. The brand recognition among customers is high along with a positive TOMA score (top of mind awareness).
2. Early listing on the NZ stock exchange: The Better Drinks Company got itself listed on the New Zealand stock exchange within 6 years of its inception. This is a clear evidence of the strong brand value demonstrated by the company as well as the solid trust that people have bestowed upon the brand. Listing on the stock exchange has given the company the access to a larger source of funds which has further strengthened brand operations (Brigham & Houston, 2012).
3. Organizational culture: Organizational culture plays a crucial role in the success of any business (Hendry, 2012). The better drinks company’s employees are encouraged to take risks and try new things. They have a policy of open and transparent communication and the organizational structure is decentralized. This helps employees in having an enhanced sense of ownership for the organization which further improves their performance (DeKay, 2012). 

Introduction of a New Product – Fresco Coffee

1. Limited products: The better drinks company is currently offering limited products. Their product line is rather small which gives its competitors an advantage over the brand. Therefore, the company must work upon introducing newer products and flavors like Kiwi, papaya, plums, oreos and other products.
2. Controversial advertisements: The better drinks company has been making rounds in the news owing to a few controversial commercials released by the company. This has adversely impacted the brand’s image in the minds of a certain segment of the society. The organization must be careful in the future and must introduce commercials which target the company’s entire target market without offending any section of the society.
3. Expensive pricing: Because the company sources the best quality fruits from different parts of the world and makes sure that there are no preservatives in their offering, the price of beverages offered by them is relatively high. The organization has adopted a premium pricing strategy wherein the company sets the price of its products high in order to target a niche market of consumers (Nagle, Hogan & Zale, 2016).

1. Expanding product line: An important opportunity before The Better Drinks Co is expanding its product line and introducing new products which would target a wider customer segment. Introducing new products would help the brand in enhancing its target customers and hence increasing revenue (Joji, 2011). Product line extension will also eradicate the competitive advantage that other firms currently have against The Better Drinks Co.
2. Expanding geographical presence: Breaking geographical boundaries and entering countries with a large population specifically in Asia would assist The Better Drinks Co in gaining a larger customer base. An industry analysis must be conducted for countries like India, China and Japan. Based on the attractiveness of the country, The Better Drinks Co must launch themselves in the respective country.
3. Social media marketing: Promoting any product or service through platforms like Facebook, Instagram, Twitter, Pinterest or even Snapchat is known as social media marketing (Heymann-Reder, 2012). This is a relatively growing phenomena and The Better Drinks Co must work towards enhancing its presence on these platforms in order to reach out to a larger audience through a single channel.

1. Increasing competition: Increasing competition in the industry poses a major threat to The Better Drinks Co. This is because increasing competition provides the same target audience with a larger number of options for a product. This in turn may lead to price wars. Hence it is imperative that The Better Drinks Co continues to hold a competitive advantage.
2. Healthy brand image of The Better Drinks Co may not appeal to children who wish to have aerated drinks. Children form a large target market for the beverage industry across the globe. Inability to cater to them poses a threat to the organization.
3. The organic market is yet immature in many countries and hence there might be a lack of acceptance for the product line of the better drinks co. Moreover the premium pricing strategy of the business also makes it difficult for people to readily accept the product. This is why the organization needs creative forms of promotion.

The Monarchy of New Zealand is relatively stable and that provides organizations with a certain amount of stability. The current Prime Minister Jacinda Ardern has a progressive philosophy and has been putting efforts in encouraging the growth of local businesses.

Globalization of the world has made it easier for the better drinks company to reach out to a wide customer segment outside the geographic boundaries of New Zealand. Well developed transport network

Changing societal norms have made people increasingly health conscious (Charter, 2017). This is where the demand fresh juice plays a bigger role in the success of the better drinks company. Improving lifestyle of people also enhances demands for branded beverages.

Use of ozone as a technological disinfectant, sterilizer and preserver can be adopted in order to make beverages more stable with an increased shelf life. Technological advancement of the society is also an added advantage for the better drinks company as it makes the process of promotions and targeting easier and effective.  

Different food safety standards govern different countries which makes it difficult for TBDC to adhere to a uniform code. The beverage industry is supervised strictly and hence the organization must make ensure that all standards are effectively met. 

The better drinks company must also make sure that as promised, the drinks are all natural. Since the beginning Charlie’s has been focused on selling beverages with no added preservatives. Even the bottles in which the juice is sold is built in an environment friendly manner. The organization must also ensure that their waste management policy is strictly adhered and organizational waste does not cause any harm to the environment.

Porter’s five force analysis is an effective way of understanding industry dynamics of a particular industry (Dobbs, 2014).

The threat of new entry within the beverage and fresh juice industry in New Zealand is high. The entry barriers from the government are relatively low and the customers are not necessarily loyal towards a particular brand. For example if an individual has coffee or juice offered by a certain brand, they can easily switch to another brand without any additional cost. However, The Better Drinks Company has differentiated its product by offering entirely organic drinks with no preservatives. Even so, there is an increasing competition within the organic industry as well and hence more and more brands are introducing similar products.

The threat of substitution is moderate. There are hardly any substitutes for fresh organic juice that is good for health and is refreshing at the same time. Also, The Better Drinks Company has been differentiating its product by offering entirely organic products with no preservatives.

Market Analysis for The Better Drinks Company

On the other hand, there is little or no cost for the buyer to switch to another brand and it is very easy for a buyer to switch to another brand within the same industry.

In order to procure the best quality fruits from different parts of the world, The Better Drinks Company has a strong network of suppliers. These suppliers are spread across the globe and share an amicable as well as profitable relationship with The Better Drinks Company. The bargaining power of buyers is low. This is because the brand image of the company is very strong and it is largely in the favor of the supplier as well to remain associated with such a strong brand. All these factors reduce the power of supplies (David, 2011).

Bargaining power of buyers in the beverage industry is very high. The concept of brand loyalty in this industry is minimal. The competition even within the organic products industry is every increasing. The cost of switching to another brand is nil. Lastly, the customers do have the power to drive the price in the longer run. Even though, The Better Drinks Company is aiming at offering differentiating products by offering organic products but the competition for the same is also increasing and there are various other brands who are now offering similar products. The customers are price sensitive and hence increasing competition may lead to a price war (Handel, 2012).

The competitive rivalry in the industry is very high. There are various competitors like Coca Cola, Frucor and Heinz. The market size of these brands is much larger than The Better Drinks Company. The market for organic products is also growing and hence the number of players in the industry is also increasing. These large brands have a much wider reach owing to a strong brand name and innovative promotional strategies. For a customer there is no cost involved while switching from one brand to another. This is why the competitive rivalry is very high. This makes it imperative for The Better Drinks Company to continue differentiating itself on the basis of price, product, place or promotion (Ray Gehani, 2013).

The new product that would be introduced by The Better Drinks Company is Fresco coffee which is available in caffeinated and decaffeinated form. The Three important objectives for the new product Fresco Coffee are as below:

1. Number of customers: the first objective of The Better Drinks Co with regards to Fresco Coffee is enhancing the number of customers. The organization must aim to build a network of at least 1 million customers in the first 18 months of the business. The target has been kept high owing to the large and ever increasing demand for coffee in New Zealand and Australia(Padron & Burger, 2015)
2. Revenue: The Better Drinks Co must aim at breaking even cost within the first year of establishment of Fresco Coffee. After the break even, the organizations next objective would be to generate revenue of NZD 1.2 million within the next 18 months.
3. Geographical expansion: Geographical expansion of any business plays a vital role in enriching its brand value and awareness across the globe. Fresco coffee would be launched in New Zealand but would expand to the Australian market through franchising within one year of the business. Australia has been shortlisted as the target destination for The Better Drinks Co because the brand already has a presence in the Australian market and Australia is one of the largest consumers of coffee in the world. This makes it a lucrative destination for The Fresco Coffee.

Market segmentation refers to the process of dividing the market into various segments consisting of potential customers (Wedel & Kamakura, 2012). There are various ways in which the market for The Better Drinks Company can be divided. These strategies are as below:

Objectives for Fresco Coffee Launch

Geographic segmentation: This refers to dividing the customer segments on the basis of where they are geographically located (Weinstein, 2013). For Fresco Coffee, the first set of customers that the brand would reach out to would be from New Zealand followed by Australia. This is because both these countries have an existing large market of coffee consumers. 

Demographic segmentation: This kind of segmentation is done on the basis of age, religion, family size, income, education or ethnicity (Routeledge, 2014). The Better Drinks Company would divide its customers on the basis of Age group and income. 

Psychographic segmentation: This involves segregating market consumers on the basis of different personality types, traits, values, attitudes, behaviors and lifestyles. The Fresco Coffee would be targeting customers on the basis of their lifestyles, behaviors and personality types. 

Targeting of customers refers to targeting a certain set of consumers from the chosen market segments (Armstrong, Kotler, Harker & Brennan, 2015). The Fresco Coffee would be adopting a differentiated customer targeting strategy which means that at least two different segments of the customers would be targeted. The targeted customers of the Fresco Coffee would be as below:

1. Health conscious people: The Fresco Coffee group by The Better Drinks Company would be targeting health conscious people who are in need for increased metabolism and a healthy refreshing drink along with their evening snack. Green coffee is known to aid in weight loss while organic coffee has been produced without the aid of any artificial chemical circumstances and is hence better for health.
2. Geographically: In terms of geography, the initial customers targeted would belong to New Zealand and later the expansion would take place in Australia.

Positioning of a product or a brand refers to the image that the brand has in the minds of the consumers (Tanner & Raymond, 2015). Positioning of a brand is very crucial to the success of the product (Lynn, 2011). For the Fresco Coffee product offered by The Better Drinks Company, the positioning in the minds of the consumer would be based on the product’s USP and points of differences.

USP (Unique selling proposition): The USP of Fresco Coffee is that is fully organic with no added preservatives. At present no other competitor is offering ready to drink green coffees and organic coffees. Therefore the packaging of the product would also be a USP.

Points of difference: The point of difference offered by Fresco Coffee would be the availability of ready to drink green coffee and organic coffee. Both the coffee are available as a decaffeinated drink as well. They are ready to drink and are available in cans.

Benefit to target customers: The biggest benefit of Fresco Coffee to targeted customers is the increased convenience for the consumers as now they can have ready to drink green coffee and organic coffee. This is specifically better for health conscious people who prefer a healthy beverage on the go

Marketing mix of any product, service or brand throws light on the 4 Ps. These four Ps reflect upon details of the product, the price at which the product is being sold, the place where the product is being sold and how the product is being promoted in order to reach out to a target customer segment (Schleenbecker & Hamm, 2013).

Market Segmentation Strategies

The core product offered by Fresco Coffee is ready to drink green and organic (black) coffee available in cans.

The actual product offered by Fresco Coffee is a healthy and tasty coffee. The brand name of the product has been selected because Fresco Coffee means cool coffee. This coffee is packed in cans and tetra packs.

The augmented product for the brand is that face that it offers a ready to drink green and black coffee which is entirely organic with no preservatives. The coffee is great for health and enhances metabolism. It is available in both caffeinated and decaffeinated forms.

Price strategy that would be adopted by Fresco Coffee would be a price skimming strategy. Price skimming strategy involves organizations pricing their products very high in the beginning and slowly reducing the price as demand increases (Ingenbleek, 2013). This is done with a primary intention to recover costs.

Fresco coffee would be priced high in order to target premium customers to begin with. Once the brand awareness, product awareness and demand for ‘ready to drink green coffee’ increases, the price would be gradually reduced in order to target the lower income groups of the society.

New Zealand and Australia are the largest coffee consumers of the world. Therefore the ready to drink green coffee and black coffee would be first launched in New Zealand. The Better Drinks Company already has an established brand in the New Zealand and hence it would be easy for the organization to set the right positioning in the minds of consumers. Once the product has been accepted in New Zealand, the next geographical expansion would be in Australia.

Fresco green and black coffee would be available in super markets located in commercial areas of the country. Kiosks would also be available in shopping malls and gyms. Fresco coffee would also tie up with other brands and sell the coffee in partnership with them.

Promotion strategies of an organization refer to the strategies adopted by a particular brand in order to reach out to their targeted audience of potential consumers. Promotion strategies play a crucial role in ensuring that the right message reaches to the right set of consumers and sets the right positioning about the brand (Singh, 2012). The promotion tools and channels adopted by The Fresco Coffee by The Better Drinks Company are as below:

Social media marketing: Social media marketing is a tool which is used by marketers to promote their products or services through social media platforms like Facebook, Instagram, Twitter, Snapchat and Pinterest (Tuten & Solomon, 2017). The Fresco Coffee would have Facebook account to promote the new product, make people aware about various offers introduced by the organization. Twitter has become a very active social media platform and allows organization to continue to listen about what is being spoken of their brand. The Fresco Coffee would also continue to share pictures of their products and satisfied customers on Instagram and Pinterest(Simone, Trail & Russo,2017).

Targeting Strategies for Fresco Coffee

It is imperative that the Fresco Coffee actively promotes its products. Social media marketing is one of the most effective ways to reach out to a large customer segment with little cost. Social listening also plays a crucial role in an organization’s social media presence. Social listening is the ability to listen to everything that is being spoken about the brand by any user across the globe.

It is important to note that unlike other channels, social media marketing can help garner interaction with customers and make it a two way communication (Lipsman, Mudd, Rich & Bruich, 2012). This is why the platform must be leveraged in an effective manner.  

Television Ads: Advertising through television is one of the most traditional forms of marketing yet one of the most effective ways to reach out to a large audience within a few seconds (Chen & Liou, 2016). Television advertisements assist in increasing brand awareness and setting the right positioning in the minds of consumers. Fresco Coffee would display advertisements on leading TV channels and curate innovative advertisements which appeal to its audience. TV ads must be displayed during peak hours of late evening in order to reach out to a maximum number of audiences(Neilson & Toth, 2016).

Website of the better drinks co: The Better Drinks Company has a strong brand name across New Zealand and Australia. The product must be promoted through the Website of The Better Drinks Company. This would lead to an increased trust and association with Fresco Coffee because consumers would understand that it comes from the same set of values.

CoBranding partnerships: The Fresco coffee is largely targeting health conscious people of New Zealand and Australia. This is why the coffee brand must target gyms and fitness centers and aim towards some co-branding strategies. The idea behind co-branding is to establish a mutually beneficial relationship (Newmeyer, Venkatesh  & Chatterjee, 2014). This could include giving discounts to gym members or opening small kiosks within the gym.

Conclusion

Marketing is one of the most essential aspects of any organization (Lee & Carter, 2011). This is how organizations understand their stakeholder needs and work towards fulfilling these needs. This report has laid emphasis on The Better Drinks Company. Through this report, market analysis has been conducted a new product has been defined that could be introduced by The Better Drinks Company. The new product is Fresco Coffee. This means cool coffee. However it would be different from other coffees because it would be entirely organic and the offered coffee would be green coffee and black coffee. This is the major differentiating factor for the product.

Positioning Strategies for Fresco Coffee

The new product would target health conscious people as both green and black coffees are natural fat burners. In order to reach out to their targeted audience, they would be adopting strategies like social media marketing, website ads, television ads and co-branding associations with fitness centers. The product would be introduced in New Zealand and later expand to Australia.

Various marketing and management attributes have been discussed in this report which depicts the importance of marketing within an organization. Effective marketing management and communications of the brand will make it possible for The Better Drinks Company to venture into this new product and expand their product line with the same level of integrity and honesty(Babin & Zikmund, 2015). 

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