Boost juice bar formed in the year 2000 with the first store located in Adelaide, South Australia and is now has an international chain of retail outlets that specialize in selling fresh juice. The company now expanded internationally with stores situated in Asia, Europe, Russia and Middle Eastern through the use of franchising. In this report we will explain how boost differentiate its products from their competitors and discuss the macro-environmental forces that could potentially impact on the success of the Boost business moving forward. Boost uses customer-driven marketing strategy to differentiate their products, such as Segmentation, Targeting, Differentiation and Positioning to differentiate their products from their competitors. Market Segmentation
The market segmentation is used to divide the consumers and group them into smaller segments, each of which can be reached by distinct marketing programme. The concept attempts to reconcile differing customer needs with limited company resources, and allows product and marketing offerings to be adjusted to suit different customer groups (Epetimehin, 2011). In this case Boost juice uses Demographic segmentation to market their customers.
Demographic segmentation divides the market into segments based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation and nationality. Boost juice differentiate its product by using demographic segmentation, they look at age and life cycle stage, gender and generation as seen on the image below.
The image above was taken from Boost website; it shows that their products are targeted to all ages and customer’s life style whether athletic or business life. They also aim at both genders since they both need boost juice in their daily lifestyle and finally generation as mentioned in the image, boost mostly target Gen Y because this generation is drinking a lot of soda and have obesity which is unhealthy, this is what makes this Gen Y targetable by boost juice as it will benefit them since fruit/vegetable juice have vitamins and minerals and help them go on a diet. They mostly target healthy beings this is shown through their vibe club where members can do activities and be rewarded by boost. Also on their website they have a section about health it explains the benefits of each fruits and why should you drink them.
Brand differentiation means that a company or a group of companies sell identical or nearly identical products under different names. These brands have unique identification a name or a logo that consumers recognize and trust. (Bernitz, Ulf 1981). When we think of the brand Boost juice bars, we think that something they produce will boost our daily lifestyle and provide us energy. Boost have their slogan “live guilt free with boost”, the company has a passion for healthy mind and body so much they emphasis on only using fresh ingredients with no preservatives and ‘nothing artificial or fake’,. With slogan and brand name customers are being valued and they will surely return and tell others about the brand Boost. This differentiation will make customers definitely go purchase fruit juice from boost instead of their competitors called Top Juice as they do not have a slogan saying they use fresh ingredient with no preservatives.
Positioning is the way a product is defined by consumers on important attributes: the place the product occupies in consumer’s mind relative to competing products. (Armstrong, G, Adam, S, Denize S & Kotler P, 2012) Below will be a graph showing the positioning
On the above graph that I’ve constructed are based on my knowledge of Boost and its main competitor Top juice. I placed Boost juice top because customers are being most valued by them, their slogan “live guilt free with boost”, and their statement no preservatives and nothing artificial or fake has created customer value than their competitor Top juice who has not provided any slogan they just state that their products are fresh and premium however they didn’t state whether they have preservatives or artificial. There Boost have obtained producing high quality fresh juice at an affordable price while Top juice provides not so good quality however priced being low which is why they are placed bottom in positioning. This shows the how Boost products is differentiated from their competitors.
Macro-environmental factors are external entities that affect the business such as economic factor, environmental and threat of rivalry/competitors factors. These factors potentially impact on the success of the boost juice business moving forward.
Economic plays a huge effect on Boost business moving forward, if the economics of a country has decreased then the business within that country will suffer as consumers are not willing to pay a lot for a product this factor can impact boost into moving forward.
Environmental factor has a huge impact on the success of boost moving forward, since boost juice relies on the harvesting of natural fruit and vegetables which is Australian grown. If the natural disaster occurs there will be shortage of fruits and vegetable which means that boost juice will sell less of their products in high value, this will not attract customers and will not move forward as a business.
Threat of rivalry/competitors Factor
This factor plays a huge role in macro-environmental factors; it can affect boost business moving forward a lot, there are new competitors to the market such as Top juice which is a juice bar producing fresh juice. Boost will need to produce new marketing concepts in order to differentiate themselves from their competitors; if they don’t act sooner they won’t move forward.
Boost differentiates their products by using the customer-driven marketing strategy from their competitors in order to be competitive advantage and the macro-environmental factors that could affect boost business moving forward.