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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-year-olds 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 FactorsStrengthsWeaknesses
OfferingSuperior quality product with multiple health benefitsUncommon product that has a bitter taste before mixing
MarketingA structured marketing plan which focuses on brand awareness and promotional activitiesMay be very costly to effectively increase brand awareness
FinanceHealthy financial start as of 2014May encounter losses for the first months of the launch, may be difficult to break even if the product does not sell well
ManufacturingContract signed with berry producers in South AmericaHigh cost of transport to import the berry to Canada
Product DevelopmentFinal prototype of the product was up to the standards and ready to be marketedMay need some fine tuning to adjust to the customer tastes due to the berry’s unusual flavor
External FactorsOpportunitiesThreats
ConsumersYoung Canadians are well used to consumer energy drinks and there is an increased demand for energy drinks fortified with vitaminsThey may not switch to Goji Boost for various reasons such as taste, loyalty to another brand or cost
SocialThe fast paced North American way of life greatly values the benefits of energy drinksMay be issues if the marketing campaign indirectly targets underage teenagers.
CompetitiveGoji Boost is the first to target the niche market of health energy drinks in CanadaThere are a lot of well established competitors’ such as Red bull, Pepsi and Coca-Cola who will not give away their market shares easily
TechnologicalBreakthrough health benefits in this marketMass production and economies of scale of competitors may harm Goji Boost’s initial launch
EconomicCanadian consumers are spending adequately, there will not be an economic barrier to consumptionEnergy drinks may not fit as a product deemed essential by many customers
LegalThe sales of energy drinks are unregulated in CanadaMay be issues with future 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.


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