Boost Juice report PDF

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Background Boost Juice bars is a renowned global smoothie franchise which was established by Janine Allis in the year 2000 when she came across the trend of juice bars while she was on holiday in the USA. Due to the lack of healthy fast food choices available in the Australian market she saw a growing demand of people seeking healthier alternatives. Realizing a huge marketing potential in the ‘wellness category ‘of the retail marketing segment combined with her passion of doing retailing in an innovative way she developed a business plan. Alongside with the help of her friends she was able to raise 250,000 dollars with which she opened the first boost juice bar which was located in Adelaide Australia. Since then the company has expanded globally and has secured its place as the biggest and fastest growing smoothie franchise with over 350 stores worldwide[CITATION Boo15 \l 1033 ].

PEST-C Pest-C framework is used in the report to analyse the macro (external) environmental factors of the company boost juice and how each stage of the framework might impact the company’s outcome which will be used to highlight the bottom half of the SWOT analysis known as opportunities and threats in the later part of the report[ CITATION Fan17 \l 1033 ]. PEST-C can be broken down into the following categories: 1. Political and legal: Food industries are heavily influenced by a variety of regulations and

policies which is implemented by the government such as: Franchise licensing, Food and safety, safe working conditions, cleanliness etc. Moreover, countries around the globe have different tax system enforced on goods and services depending on the political system which impacts the growth and revenue of an organisation[ CITATION Gut08 \l 1033 ]. For example, if the government increase tax on importing sugar will cause an increase in the price of soft drinks and carbonated beverages. As a result, customer will

be more inclined to choose healthier alternative like sugar-free juices, smoothies resulting an increase in revenue of boost juice. 2.

Economic: The level disposable income plays a critical role on the demand for carbonated drinks and juice bars. It has been observed that during the time of economic downfall the level of consumer spending declined significantly which negatively impacted the juice market. However, due to the rise of consumer awareness regarding the health benefits of a balanced diet in recent years consumers are more likely to stick to healthier choices[CITATION Smi18 \l 1033 ]. As a result, boost juice will have a significantly higher chance to flourish even during the time of global crisis in both developing and developed countries. Moreover, boost juice is well known for its innovative marketing campaigns in which they highlight the benefit of fruit smoothies in a vibrant way to attract its targeted customers thereby giving them the opportunity for further market expansion even during the time of economic recession[ CITATION Boo15 \l 1033 ].

3. Social: Rising health concerns among consumer in recent years have forced consumers

to shift from carbonated drinks to organic fruit smoothies resulting an upshift in the juice market globally. As people are becoming increasingly socially concerned about what they are putting inside their body they are more leaning towards healthier choices like fruit smoothies which are free from artificial colours, flavours and preservatives[ CITATION Smi18 \l 1033 ]. Due to these factors boost juice can easily retain and increase its target market as their product’s primary focus is to provide consumers with healthy and nutritional dense product which will give boost juice the opportunity to grow and develop in future. 4. Technological: In the competitive market of beverage and juice industry companies often have to put emphasis on R&D and ICT to enhance their brand image which help to increase brand awareness among consumer. Boost juice is well known for its use of digitalized social media platform to reach its target audience globally. This in turns results into an increase in revenue in the long run for the company as a whole.

Furthermore, it also allows boost juice to manage a wider spectrum of customers efficiently and effectively while minimising the cost. 5. Competitors: The beverage and juice industry are one of the most highly competitive

sectors in the modern world of business. To remain competitive companies often have to come up with unique ideas to create value proposition for their product to attract targeted customers. Although boost juice has single handedly dominated the smoothie and the fresh juice market for the past eighteen years it is not entirely a new concept. In fact, the concept of juice bars was first introduced in Perth Australia in the year 1996 under the name Java Juice. Java juice is the biggest competitor of boost juice in Australia as its product is based on the same criteria as boost juice i.e. creating using fresh ingredients to make juice and smoothies. In addition, Java Juice also collaborated with MUZZ BUZZ and incorporated the idea of grabbing smoothies on the go. However, Java juice is unable to compete globally like boost juice as java juice is only based on Perth[ CITATION Our16 \l 1033 ].

SWOT ANALYSIS SWOT analysis has been implemented in the report to identify the strength, weakness, opportunities and threats of the boost juice company. It is a highly effective framework for any organisation as it allows a company to assess its current market situation which acts as precursor for formulating marketing strategy to remain competitive in the future[ CITATION KYL12 \l 1033 ]. 1. Strengths: One of the key strength of boost juice as a company is that it encourages franchising opportunities to others by providing the master franchisee the full authority of the franchising activity in a particular area while remaining as a master franchisor. This allows boost juice successfully expand its market on a global platform. In addition, boost juice emphasizes on customer-centric approach through the use of a variety of customer relations tools which allows them to cater a personalized experience to its targeted audience thereby increasing customer satisfaction. Moreover, boost juice also uses a wide range of integrated communication tools to increase the awareness of its customer which helps them to maintain the strong recognition of the brand. Additionally, boost juice is also known for its innovative approach of coming up with

new products which is healthy as well as refreshing thus retaining its target market. The company also maintains an efficient and well-established supply chain for its resources which helps them to operate efficiently all year round[ CITATION Boo15 \l 1033 ]. 2. Weakness: One of the greatest weakness of boost juice is that its sales is heavily influenced by seasonal factors. For example, it has been often observed that the sales of boost juice to decline during the time of winter season in comparison to other seasons. Moreover, availability of fruit, vegetables may vary depending on seasons which might influence the business of the company. Boost juice is sometimes perceived as an expensive product by a certain group of consumers due to its high pricing compared to other beverage alternatives in the market. 3. Opportunities: Boost juice has the capability to further increase its market globally due to its unparalleled success in the juice bar industry. In order to do so boost juice have to focus on countries that are strong economically and has people with high disposable income. Furthermore, boost juice can increase its customer base to ageing population and millennials by broadening the demographic of the target market. In future boost juice can extend its product offerings by incorporating organic hot chocolates, herbal teas, warm lemonades etc in their product range which will not be affected by variability of seasons. Celebrity endorsing can be used to gain trust and change the perception of the consumers about the pricing of the product thereby making it more justifiable to their customers. 4. Threats: One of the greatest threat that boost juice may face is the high price of raw materials for its products such as fruits, nuts, vegetables during the time of natural disaster which will force boost juice to increase the price of its product. Moreover, it might also force boost juice to close down its business due to the lack of supplies of the resources required for its smoothies and juices. Another potential threat that boost juice might come across is the barrier to enter the foreign market due to varying political rules and regulations set by governing bodies across different countries. Additionally, the success of the business is greatly dependent on the country’s economic stability and power of its currency. Beverages and smoothie industry is known to be extremely competitive due to the lack of barriers for entering the market. Therefore, boost juice must be aware of new competitors entering the market both at global as well as domestic level.

Market Position and Target market Target market: The product of boost juice is divided among most age groups particularly emphasizing on generation Y which consists of lifestyles ranging from normal households, students, working, athletics or people who is seeking an active life style. Although boost juice has such a broad range of target market which contains both males and females its primary target in terms of demographic is females ageing from 15 to 25 years old who lives a vibrant and healthy lifestyle. On the other hand, its secondary market group consists of people ageing between 25 to 40 years, living in urban environment with high disposable income who made a conscious choice on maintaining a healthy lifestyle while balancing both work and social life....