Bionade: international developpment

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Napier University Business School

International Marketing
MKT 09101
Assessment 1: Bionade Development
Words: 2596

Table of contents

Introduction…………………………………………………………………………………………………….3
I- Description of the Company Bionade……….…..………………………………………………3
II- Environmental analysis…….……………………………………………..……………………………4
II-a) Market trends……..…………………………………………………………………………………..4
II-b)Customer analysis…………………………………………………………………………………...4
II-c) Competitors analysis (Porter 5 forces)..……………………………………………………5
II-d) Current position of Bionade (SWOT)..……………………………………………………10
III- Strategic concerns…….………………………………...…..………………….……………………11
III-a) ANSOFF Matrix….………………………………………………………………………………...11
III-b) PESTL analysis.….…………….…………………………………………………………………..11
III-c) United Kingdom Marketentry strategy..….……………………………………….….12
III-d) United States market entry strategy………………….…………………………….…..13

Deductions & Conclusion………………………………………………………………………………..13

References..……………………….………………………………………………………………………….15

Introduction:
In this beginning of the 21th century, consumers must face millions of brands throughout their country and also throughout the world. In this strugglebetween the brands to gain market shares and to be a global recognized brand, each one of them wants to act at the best to satisfy the consumers’ needs using different strategies and tools. In this study, we will analyze the case of the brand Bionade which produces a non-alcoholic organic drink. Our mission will be to analyze the current situation of Bionade and then to determine the strategicchoices which will help us to establish the brand onto the US market and also to take Bionade forward on a global scale.

How Bionade is born and how did it evolve?
In the 1980s, the mature German beer market is in decline due to the emergence of trendy, lifestyle-softdrinks and alcoholic mixed drinks. Small breweries such as the Bavarian Peter Brauerei were suffering from this development. Inorder to keep the business running, the master brewer Dieter Leipold started researches on a new non-alcoholic drink in 1985 and finally discovered the gluconic acid bacteria 8 years later. This micro-organism transforms sugar in gluconic acid and allowed him to create a new non-alcoholic refreshment drink produced by a purely organic process– through the fermentation of natural raw materials oforganic quality. Bionade new low-calorie beverage appeared in orange ginger, elderberry, lychee and herb flavours.
Sales didn’t really increase until the arrival of Wolfgang Blum in 1999 as marketing expert. He introduced a new retro logo for the brand and brought the product as a new hip lifestyle drink that happened to be healthy under the slogan "The official drink of a better world". With areduced budget, Bionade began its advertising campaign by sponsoring sporting, cultural and kids’ events across Germany and using viral marketing. Thanks to word-of-mouth and flurry of german news reports, sales of Bionade picked up. Bionade developed a own niche of the organic lemonades, what enables the brand to appeal to the health-conscious consumers and to sell through organic food stores. It isalso present in restaurant, bars, clubs and supermarkets.
In order to increase market share and ameliorate the brand image it is now crucial to get the product out of the niche onto the mass market.

Environmental analysis
Market trends
Today, health-conscious represents a major issue in the mind of people. Further to the different problems and social issues of alimentation that we meetamong young people -such as obesity and diabetes- with the bad food, people take more and more care of their health. Because of their quality, organic products are broadly accepted and demanded by consumers who wish to pay for an added health value. Moreover, these organic behaviours represent also a trendy and healthy life-style in the actual society and children are educated on this model....
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