7/12/2013
COURSE
NAME AND
MARKETING PLAN OF A FITNESS DRINK
NUM:
Lecturer’s name: | Strtutorials.com
Company Description
Juvinatar Beverages Ltd. is referred to as a new business venture which is based on partnership
of five Canadian managers. A wide variety of fitness drinks and health beverages are being
offered by this firm. The ranges of products offered consist of vitamin tea along with fresh juices
blended with various natural antioxidants. The mission statement of the firm is presented below:
“Juvinatar Beverages appreciates the lifestyles of its customers and develop pioneering
beverages, ingenious health elucidations and energetic products to convene all expectations of
firstly the health-conscious Canadian of today and tomorrow and other international markets.”
Product Description and Positioning
In the year of 2013 the firm planned to launch the new line of fitness drinks in the last quarter.
The energy or fitness drink will be incorporating the health benefits of the healthy and medically
beneficial fruit acknowledged as Gogi Berry. This fitness drink would be branded as Goji Boost
which will be rolled out in market in October 2013. The marketing campaign run by Juvinatar
for the promotion and positioning of this brand is very energetic and will involve the planned
statement as “the invigorating drink everyone will be talking about”. The health properties
elaborated in campaign would be involving:

Improved vision

Cleaning of the liver and kidney

Smoother blood circulation
The above mentioned techniques would facilitate Gogi boost to make its superior positioning in
the health-preoccupied Canadian market as providing a healthy alternative to an ever-popular
drink one enjoys and uses to keep up with one’s fast-paced lifestyle. The differentiation
positioning strategy is employed to target its market of younger, more health-conscious
consumer. The key success factor of Goji Boost is its placement as a premium niche product in
the health energy drinks market. This product by disseminating its health effectiveness and
medical preferences would enhance its image in the market of energy drinks and will mitigate
the hazards of energy drinks already offered by the industry. The positioning map is presented
below:
Consumer Profile: Market Segmentation and Targeting
Juvinatar Beverages new fitness drink will be regarded as a successful and competitive product
for the reason of its niche market selection. The drink is going to target the youngsters who are
studying along with taking exercises in gyms and performing sport activities. The common
drinker of Gogi Boost will be:

Young student, gym guru or an athlete

Who is Living a fast paced life

Having Split between late night studies for examinations

Going for Night outs

Busy in shopping at days and

Lacking sleep timings
The targeted market is already established and is using the energy and fitness drinks which will
facilitate the firm not to build the grounds for the creation of product awareness. The Gogi Boost
of Juvinatar Beverages will be serving the customers as a healthy alternative compared to the
packed sugar drinks, and other branded energy drinks having no health benefits for the targeted
customers. The targeted demographic of Gogi Boost is age between 15 and 24. After 24 years of
age the behavior and psychographic of people start changing and it is bit difficult to target older
people towards energy and fitness drinks. Juvinatar will be therefore focusing all its marketing
efforts on teen agers and young adults in Canada. Gogi Boost will be launched primarily in
universities and college campuses through all the Canadian Market. The primary launch will be
boosted by the promotional campaigns run both in campuses and through event launching
regarding the energy and fitness themes. The campaigns and promotions will be aggressive to
boost the brand and create brand awareness in the market. The same techniques are already
implemented regarding other brands and products in the market which proves its effectiveness in
the market for instance in the case of Old Spice viral advertising video campaign.
Statistics Canada reported that at the end of 2010, 13.5% of the country’s population was aged
between 15 and 24. Additionally, among the same demographic range, 31% of 12- to 17-yearolds and 34% of 18- to 24-year-olds report regular consumption of energy drinks. This represents
a rough market of 1.494 million potential consumers for our market across Canada. The
Juvinatar Beverages is confident that the stable expansion of energy drinks utilization of juvenile
teenagers, as measured by Marin Institute, is an important focus of this marketing campaign.
This growth consists of an increase in consumption of energy drinks from 18% in 2001 to a
consumption of 31% in 2006 in the 12-17 age group, which will definitely be a factor
encouraging this age group as a secondary target market, since direct advertising to children of
such a product is restricted in Canada. As for the company’s primary target market segment, it is
relevant to note that full and part-time university students in Canada for 2008/2009 consisted of
1,112,370 individuals. This represents a substantial target market if we rule out adult students
and suburban university students outside the company’s distribution range.
The charts regarding the market analysis in Canadian Market with respect to energy and fitness
drinks are presented below:
Market Profile: SWOT Analysis
The SWOT analysis of Gogi Boost is presented in this section. It involves the categorization of
internal as well as external factors and relative strengths, weaknesses, opportunities and threats.
Regarding the Juvinatar Beverages the internal factors like innovation, and the strength of
already established consumption of energy drinks, well planned and effective marketing strategy,
along with finalized prototype of primary launch provide successful and strengthened
environment. The opportunities regarding the external environment and factors present relates to
the extensive demand of the energy and fitness drinks, youth strength and market demographics,
unexploited niche target market regarding fitness drinks in the market of Canada along with
lacking regulative measures in energy and fitness beverage industry.
On the other side of picture the negative environment internal and external also pose some
pressures on Juvinatar Beverages to be handled for effective marketing campaigns and primary
launch. The most challenging external factors include the well established competitors’
environment, sponsorships programs by competitors for young students to participate in events
which will reduce the chances of Gogi Boost to make its awareness much speedily in initial
launch. In relation to the economies of scale, prices by competition may pose difficulty in
counter parting especially in the first few years following its launch as Goji Boost will need to
offer competitive prices in order to attract potential customers. In addition, possible prospecting
legal regulation regarding industry of energy and fitness drinks sales and consumption by the
government of Canada might influence Juvinatar Gogi Boost sales. SWOT analysis for the
launch of Goji Boost is presented below:
Internal Factors
Strengths
Weaknesses
Offering
Superior quality product with
Uncommon product that has a
multiple health benefits
bitter taste before mixing
A structured marketing plan
May be very costly to
which focuses on brand
effectively increase brand
awareness and promotional
awareness
Marketing
activities
Finance
Healthy financial start as of
May encounter losses for the
2014
first months of the launch,
may be difficult to break even
if the product does not sell
well
Manufacturing
Product Development
Contract signed with berry
High cost of transport to
producers in South America
import the berry to Canada
Final prototype of the product
May need some fine tuning to
was up to the standards and
adjust to the customer tastes
ready to be marketed
due to the berry’s unusual
flavor
External Factors
Opportunities
Threats
Consumers
Young Canadians are well
They may not switch to Goji
used to consumer energy
Boost for various reasons such
drinks and there is an
as taste, loyalty to another
increased demand for energy
brand or cost
drinks fortified with vitamins
Social
The fast paced North
May be issues if the marketing
American way of life greatly
campaign indirectly targets
values the benefits of energy
underage teenagers.
drinks
Competitive
Goji Boost is the first to target
There are a lot of well
the niche market of health
established competitors’ such
energy drinks in Canada
as Red bull, Pepsi and CocaCola who will not give away
their market shares easily
Technological
Breakthrough health benefits
Mass production and
in this market
economies of scale of
competitors may harm Goji
Boost’s initial launch
Economic
Canadian consumers are
Energy drinks may not fit as a
spending adequately, there
product deemed essential by
will not be an economic
many customers
barrier to consumption
Legal
The sales of energy drinks are
May be issues with future
unregulated in Canada
regulations of energy drinks
due to their high level of
caffeine and potential threat
due to overuse
Foreign Entry Potential: Expansion to Japan
At time when the primary objectives of the initial launch of Gogi Boost will be achieved than the
Juvinatar will plan to expand and launch the fitness drinks in international market of high
potential like Japan. A prospecting country that is planned to be reached after Canada is Japan.
The country is selected based on the substantial market segment for the Gogi Boost of Juvinatar.
The major geographic motivation for selection of Japan is regarding the suppliers of Gogi berry
which is imported from China therefore will provide and edge for supplies of raw material for
production of Gogi Boost. The closeness to Juvinatar manufacturing plants would trim down the
costs relating transportation, permitting the company to whichever decrease its prices or to obtain
a superior profit margin.
In considering demographics; Japan’s economically active population of age 15-24 of 5.6 million
individuals represent 8.36% of the total population as of 2010. These demographic indicators
represent a very attractive and wide enough market for the introduction of Goji Boost. According
to GMID, “Spending by this group is categorized by lifestyle brands, fashion, high proportional
spending on electronic goods, and especially portable varieties of these goods, such as mobiles,
laptops and video game machines”. Moreover, energy drinks consumption in Japan was 201
million liters, 5 times more than Canada’s consumption. Furthermore, people in Japan are
especially concerned with staying fit and healthy, and have the financial means to pay a premium
for products such as Goji Boost that would healthfully energize their bodies, assisting them in
reaching those goals. The wide popularity of social media and technology amongst students
allows Juvinatar Beverages to take advantage of websites such as Google Japan, Yahoo!, Face
book and YouTube for promotion.
References:
Agency, U. G. (2011). “Vietnam”. Retrieved from World Factbook:
https://www.cia.gov/library/publications/the-world-factbook/geos/vm.html&gt
Blog, T. 3. (2009). “Demographic Snapshot: Vietnam”. Retrieved from Age Curve Report:
http://www.theagecurvereport.com/3-beacon-blog/demographic-snapshot-vietnam.
html&gt
Canada, H. (2008). “Market Brief : The Canadian Energy Drink Market”. Retrieved from:
Agriculture and Agri-Food Canada: http://www.ats.agr.gc.ca/can/4469-eng.htm&gt
Canada. Learning Resources- Students. (2011). Retrieved from:
StatsCan: http://www.statcan.gc.ca/edu/edu02_0000-eng.htm&gt
GMID, G. M. (n.d.). “Statistics on Energy Drinks and Soft Drinks Market Shares”. Retrieved
from: http://www.portal.euromonitor.com/Portal/Statistics.aspx&gt