Marketing Of German Brand Bionade

commercialize Of German Brand BionadeThe German shit BIONADE which produces and distri e actually(prenominal)es radicalally lemonade brewed resembling beer moreover without alcohol BIONADE 1, tries to enter trades all over the world. Dagmar Mussey 08/10/2007 2. With the terror of going bankrupt with its beer brewery Dagmar Mussey 08/10/2007 2, the head of the political servingy Leipold, tried to spread its product range and invented a brewed soft throw for children. With its superficial foodstuffplaceing schema with well(p) few money BIONADE managed to guide a crap known all over Ger many an(prenominal) in shortest time by sponsoring events and viral commercializeing. Ralph Atkins 3 In 2009 the large German group Dr. Oetker bought with 70% the absolute majority of BIONADE. Weiguny 2009 18 After distributing in most European countries since 2008 the companys aim is now, that their innate crisp will become a Welt crisp.Ralph Atkins 12.12.2007 3 How BIONADE lav poke out the tar find oneself and what they should considered, it is indicated in this paper on the example entering the US drinkable market.Environmental AnalysisBIONADE needs to analyse the market of US. The retail market in the United States is very competitive and dynamic. Consumers preempt consume out of a large number of retailers. With the information of the internet consumers potty easily comp ar all products and retailers. So retailing has been led to a hard job and you have to observe the consumers needs, because consumers have the power. Weitz 2010 4 market trim downsBIONADE aims to go on the Ameri washstand beverage market. The carbonated drink atomic number 18a is the most naturalised in the soft drink indus bring word with nigh 40% of the volume. Jonathan Thomas 2010 6 simply the growth almost stagnates with mediocre 1.2% growth rate and the share will fall more, because more consumer privilege healthier beverages like fruit juices, fruit based drinks or bottled water. In this case, in that respect is a chance for BIONADE to put its organically level-headed and approximately sugarless beverage on the US market.In addition it should be mentioned, that the market shares for sport and energy drinks within the carbonated soft drink segment has raised about 7% last year, and it is assumed that this trend will last. Jonathan Thomas 2010 6 The study, which was ordered by just-drinks, evidences that the fruit-based drinks are expect to remain strong.CustomersBIONADEs target group are strong, young consumers and aware of the health. Examining the consumers in US nowadays it can be noniced, that there is a heighten in lifestyle. For decreasing the problems of fat children, which has become a major resultant in the US, the government planned to ban sugared drinks like coca plant Cola from school. Atkins 12.12.2007 3 Consumers strive away from convenience and fast nourishment to fresh cooked meals and healthy, organic products, which a re traded fair. Lifestyle Food and Drinks future(a) 2008 10Business Insides report Lifestyle Food and Drinks (2008) says in addition, that many habitants of the US do have work-related stress, which they try to compensate with healthy drinks and food to get more energy and fun. Additionally America has an ageing generation. These mountain do all their best to stay young and healthy. in that respectfore they consume e.g. many anti-ageing products, which aim this target group. Altogether there is a broad sort of different reasons, why people want to live healthier, which is shown in the model 1.Figure The complexity and diversity of modern lifestyles Lifestyle Food and Drinks Future 2008 10CompetitiorsThe beverage market is a strong market in the United States. Global players like Pepsi and coca Cola are colonized in America as well as the US brand Dr. Pepper. These three brands are in 2010 the best-merchandising companies, and most customers bought drinks of these companies. S ector frail Drinks Non-Alcoholic 2010 11 They in any case try to establish healthier drinks, to follow the trend. Coca Cola put The Spirit of Georiga on the market, which is competitive lemonade to BIONADE. They also try to do a partnership with Honest Teas, which also is settled in the health and wellness segment. potable World 2011 13 Nestl, who is also a big player one the beverage market, also put well-nigh health drinks, like ready-to-drink teas on the market. Viewing the global health drink and food segment it can there were more than 4000 current products came on the market in 2009, which are more than double as untold as in cinque years ago.Heather Landi 12 at that place is a keen competition in this field.Analysis and TheoriesWith entering a radical market there are many topics which should be considered. The wonk analysis is a management tool which shows clearly arranged which dominance and weaknesses a company has, and which opportunities and threats are given from the environment of a company. The points are aimed on the target, a company has. In this case it targets the entry of BIONADE on the American market. Simon 2002 9StrengthsWeaknesses wide-ranging NetworkOnly breed lemonade discover on other marketsLarge target groupGood references in EuropePlans for adopting the product for the US market ( crude tone of voices)Unique product (the wholly brewed lemonade)Just one product siteWorkers with no knowledgeLarge Supply-ChainHigh costsNew unknown market OpportunitiesThreatsChanging Consumer deportmentGrowing sustainable and health marketGrowing Beverage martBanning sugared drinks in schoolsMarket nicheLarge Beverage MarketMany Competitors like Coca Cola (Georgia)Other organic certificates in the US than in EuropeMany other healthy drinksFigure SWOT-analysis for BIONADE on the US-market Simon 2002 9To get an overview of the market, Porter invented the tool Porters 5 Forces. Porter 1998 14 Porter has identified five competitive puffs at work in every industry and every market. The expression of these forces determines the forcefulness of competition in an industry and thus its net incomeability and attractiveness. The objective of integrated strategy should therefore in looking for ways to weaken competitive forces in relation to the company itself. Porter 1998 14Figure Porters five forces Porter 1998 14Analysing the American health beverage market, which BIONADE wants to enter, there is a variety of forces, which should be considered.Buyers It can be a threat, because buyers have the force to choose other drinks.Substitutes There are some substitutes. They are and primarily they will become a threat. There are not barely other healthy lemonades but also bottled waters, ready-to-drink teas and fruit juices.Suppliers Meanwhile there is no big threat by suppliers, because BIONADE exports its own bottles form Germany and uses the dressed ore which is produced in its producing site in Germany.Potential Entrant s This would be the biggest threat. Because of the large market and the huge chance because of the trend of changing lifestyle, many competitors will get on the market.There will be keen competition which should be considered by entering the market and solutions must be found for from each one problem. Some solutions can be in the marketing mix, like price politic or with clever product placement.StrategiesWith its aim generating a big turn-over, BIONADE entered the US market because there is a niche market. There is no other brewed lemonade in America, but there are customers who would buy healthy drinks. With this unique position, they have a chance to challenge other companies and take market share. Doole 2004 20 Because of the large competitors like Coca Cola and Pepsi, BIONADE should discern in marketing, product, product placement and aim with a unique marketing-mix at the target group to prevent other companies taking their business idea.Kotabe 2008 21The best strategy for BIONADE was Differentiation. Doole 2004 20 Because of the flexibility of a SME, the company can meet customer needs very fast and can make out from other beverages. To have not a high level of insecurity BIONADE made a joint venture with a German bean plant company, which piggybacks the product. This indirect exporting method can work, because both products are organic, but they are no competitive products. BIONADE can profit of the reputation of the noodles. As the noodle company does not have the knowledge in the beverage segment it would be a discover strategy to get succor of an agent, who knows the market. With direct export the companies risk shrinks but the cost raise. Kotabe 2008 21BIONADE established a production site in the US. With this strategy they can conserve costs for transport, which are mainly the highest costs of the supply chain. Kotabe 2008 21 But with this strategy the quality of the beverage can decrease. The employees dont have the knowledge like the s taff in Germany. In addition there is also the risk, that BIONADE does not sell as much as calculated and the assembly lines are not working to their full capacity.RecommendationTo keep successful BIONADE can go different ways. There is the possibility of entering more markets, or to penetrate new markets or put new BIONADE products on the market. In this chapter is shown, how BIONADE can manage these two different paths of expanding the brands value.Staying competitive with entering new markets or productsNewProductsExistingAnsoff(1957) invented a method, which makes it for companies possible to feed more profit and growth. His theory is divided in four ways, which are entering new markets or inventing new products. This method can help BIONADE to succeed on the market during the next years.ExistingMarkets or segmentsNewFigure Ansoff intercellular substance H. Ansoff 15Potential strategies areMarket development BIONADE can generate growth with entering new markets with existing p roducts, like BIONADE already has through in countries around the domestic market. There are the possibilities which are shown in chapter 4.1. It is recommended that BIONADE searches for a partner in US who supports the company by selling the beverage. A good partner could be McDonalds, because it changed the strategy to healthier food. There already exists a partnership between both in Germany, which can be expanded to North America. Weiguny 2009 18Market penetration In this field, Ansoff describes in his theory, there are is not much growth expected. H. Ansoff 15 But BIONADE can use its experience to gain new customers on the existing market or sells more to regular customer. It can be aimed with setting up a marketing campaign like fashioning cocktails with BIONADE.New product development This strategy has more risks than just market penetration. Thommen 2009 16 It is useful to stay successful. BIONADE can remain successful on the existing market with introducing new flavours li ke Cranberry for the US market, new endeavor of bottles or maybe thermo jugs of BIONADE to keep the beverage cool in summer. diversification The strategy of entering new markets with new products has the highest risk rate. Thommen 2009 16 BIONADES has a variety of possibilities from putting a sports drink on the US market or inventing sweets or ice cream for kids.But another strategy to stay competitive is to keep an eye on the global market trends and spread the beverage in more foreign markets.entranceway new marketsBIONADE is on shelves in almost in the whole northern part of the hemisphere, like in almost whole Western Europe, North America, and Russia, as it is shown on the map below.Figure BIONADES current and voltage market entries Daniel Dalert 17As the SWOT analysis shows in chapter 2.1 BIONADE has many opportunities and chances, not only in the US market. The trend to a healthier life exists in almost all Western countries. To expand the market, it is recommended to ent er step-by-step all Western European countries, like the missing countries Portugal and the East European countries, with new special flavours adopted for the countries. Because of the short trade routes it could be made by exporting the bottles. If North America runs well, there is the opportunity to go to Australia, which is also a Western country with loads of sportive, healthy living people on the beaches. It could be the strategy to sell the beverage first on the coast in cafes and bars. With the same strategy like in Germany and with just low marketing campaign they could sponsor surfing contests. Also capital of Brazil is a good target market with healthy living, open-minded people. With their favored trend fruit Acai berry there is even a flavour for this market. Because of its hot climate there is the possibility to sell it as a healthy refreshing drink for day and night, even for cocktails.It is recommended not to dressed ore to just a view countries, because the beverag e market has keen competition. Entering more markets and to have in all countries a little market share is the key to BIONADEs success.ConclusionFor BIONADE, there is still high potential to raise the growth like in the last few years, curiously with entering new markets. Weiguny 2009 18 But BIONADE gets harsh critics, especially in Germany, because they had a change of their strategy. Matthias Benirschke 05.02.2011 19 It is said BIONADE is not that bio like they say and it is not any more a drink for a better world, and they stopped sponsoring some events. In Germany there is at the moment the threat of losing regular customers because of just trying to gain the highest profit. The target group is very sensible and should be taken very into account. Matthias Benirschke 05.02.2011 19Appendices