Introduction
Booster Juice is an American based company, which offers juice and smoothies. The juice that the company offers is full of ingredients that comprise of fruits, yoghurt, vanilla, and other products that are rich in proteins, vitamins, and starch. Some of the major competitors of Booster Juice include Jugo Juice and Jamba Juice. Conversely, the growth and expansion processes of the company, irrespective of the rising competition, imply that its products appeal and meet expectations of consumers. Hence, the purpose of the research paper is to undertake a study concerning the viability of setting up a location that supplies Booster Juice in Sydney, Nova Scotia.
Target Customers
The proposed business targets families and individuals of all ages in society. Since the product has a high nutritional value, it is rich in proteins, vitamins, starch, and minerals, which are essential in the body, and thus, it is advisable for all individuals in the society to consume it. According to Fung, individuals who seek healthy living need to consume high-quality juice since they have a nutritive value, which is fundamental towards improving their health (129).
The nutritional value of the juice makes it fundamental for all segments of consumers, especially the young and the middle-aged individuals in society. Since the fruits have diverse nutrients that are important for growth and development, it is appropriate for the young and the middle-aged individuals in the society, who requires these nutrients. In addition, the elderly in society need juice so that they can acquire the nutritional value derived from the fruits and vegetables, as well as berries used in the manufacture of the juice.
Creativity, effective pricing, and good packaging are some of the elements that the proposed business can employ to ensure that it successfully reaches and persuades its target consumers. The target customers usually comprise of the young, the middle-aged, and the old persons in the society. Creativity and good colour, as well as the packaging of the product, attract the young individuals in society, while the middle-aged purchase the product because of its effective pricing. Burton, Parker, and Lawley explain that successful marketing entails a strategy of understanding consumer needs and converting them into products that match their expectations (5). As a result, the juice is essential for all individuals in the society for its nutritional value is a factor that they cannot underscore in their quest towards healthy living.
Another focus that compounds the middle-aged as the target consumers lie on the busy schedules that drain them of their energies. As a result, the middle-aged individuals need a drink that gives them the strength to cope with their schedules and meet their timelines with ease. Since Booster Juice is a drink that energizes individuals, the middle-aged people in the society end up as the potential consumers of the product.
The young individuals, who are mainly students, need the juice to meet their daily academic requirements and tackle the daily challenges related to education efficiently. Fung asserts that fine juice is a good source of natural ingredients such as proteins, vitamins, as well as starch (10). The act of diversifying from Booster Juice to smoothies is very vital in the incorporation of the young and the middle-aged individuals into the segment of the target customers.
Significantly, the juice provides an alternative for individuals, who are active and need fast food that not only meets their requirements timely but also facilitates healthy lifestyles. The majority of the people, who consume Booster Juice, are individuals, who are busy, active, and average income earners. Therefore, it is important to price the product effectively so that the target consumers, who comprise of families and individuals, can afford the product. Burton, Parker, and Lawley highlight the fact that pricing is a very crucial element in the success of any firm that deals with the manufacture and sale of products (9).
Ensuring that the price of Booster Juice is within the purchasing power of average income earners of the society implies that the target customers will be in a position to purchase the products and consume them. It is imperative to understand that the target customers of Booster Juice, which is the main product, are families and individuals, who are active and value healthy lifestyles.
The Cash Needed to Open the Business
Business entities must consider a number of factors before setting up a venture in a certain region. Some of the factors include location, target customers, and financial requirements. The financial requirement concerns the amount of money needed to set up, establish, and run the operations of the subject business. When calculating the amount of cash required before commencing, establishing, and running the proposed business of Booster Juice, it is important to highlight the requirements needed to set up the business.
Since the business is a prototype of the main venture, the location of the business will be a rented place. Renting is a much better option than developing a structure used in the sale of the product. In addition, the average price of competing products and substitutes in the region is another element, which is vital. Understanding the prices of competitive products and substitutes is an essential element in strategic pricing and entry into a competitive market (Burton, Parker, and Lawley 58).The vitality of the average of competitor products and substitutes materialises as it facilitates strategic pricing of Booster Juice in the region.
Rent, marketing costs, working permit, and operating licenses from the state are among the main factors that determine the cost of establishing a Booster Juice business. Moreover, the cost of purchasing equipment like coolers and juicers dictate the cost of setting up the subject venture. A combination of the costs of license, equipment, permits, and marketing help in ascertaining the amount of money required to open the Booster Juice business. According to Fung, some of the equipment required in the manufacture of Booster Juice includes blenders, mixers, juicer extractors, and coolers (50).
The average prices of establishing a business related to Booster Juice in Sydney is about $10, 000, while the price of blenders ranges from $20 to $60. In addition, the cost of juicer and juice extractors lies between $30 to about $100. A summation of the cost of equipment and other costs such as licenses and permits makes the total amount of money required to establish and run the Booster Juice business in Sydney Nova Scotia at about $10,000 to $15,000.
The amount of cash needed to open a Booster Juice business
Price of the Juice
Pricing is an important aspect for the success or failure of any business. Poor pricing strategy often results in losses of the business, whereas an effective pricing strategy leads to successful growth and generates huge profits. The price of Booster Juice will depend on factors such as the pricing strategy and the prices of substitute and competitor products. Burton, Parker, and Lawley explain that pricing is an essential element in determining the growth and development of any business venture (58). When pricing Booster Juice, it is very crucial to engage in an extensive research in order to understand the purchasing power and buying behaviour of the target consumers. An understanding of the purchasing power and buying behaviour of the target consumers facilitates effective pricing since the product pricing takes place within their purchasing power and buying abilities.
The significance of understanding firms that offer substitute and competing products and their respective prices lies in product pricing. An enhanced understanding of the main competitor products and substitutes helps in determining the prices of the product in the market. Fung highlights the fact that modern consumers of juice are concerned with the quality and the health nature of the products as opposed to past consumers, who focussed on the quantity (35).
A good knowledge of the prices of substitutes and competing products enables the business to price its juice in a manner that falls within the price range without compromising the cost of production. It is important to understand that if the price of Booster Juice is higher than the prices of competing products or substitutes, then consumers will choose the competing and substitute products over the product. Furthermore, because the product will be in its initial stages in the market, several consumers will be reluctant to purchase and any attempt to raise the prices over competing and substitute products increases the level of consumer unwillingness to purchase.
Some of the competing firms that produce juice in Sydney include Directus Australia Pty Limited, Tamarama Fresh Juice, and Sydney Breeze Fruit Juice Company Limited. Since the firms engage in a competitive pricing strategy, their price range is minimal, and thus, their juices have prices, which demonstrate the least variance. As a result, it is fundamental to price the juice within the range of these competing firms.
Before pricing a product, firms need to identify their competitors and their respective prices (Burton, Parker, and Lawley 57). The need to price Booster Juice within the range of competing and substitute products implies that the prices of Booster Juice will fall within the prices of competing firms. A good pricing strategy employs price and uses it as a tool to outsmart competitors and firms that offer substitute products in the market. Pricing is also a very important tool that the business can use when entering the market and persuading its potential customers to purchase the new product over the existing competing or substitute products.
Sizes of the Products
Product design and size is very vital in persuading consumers to purchase and consume a given product. A well-designed product that has a creative shape and size increases consumer willingness to purchase. Conversely, if a product is not well packaged and designed creatively, consumers will be reluctant to purchase them. According to Burton, Parker, and Lawley, product size and design are very important in the growth and development of a firm (59).
Therefore, effective product size facilitates pricing, which minimise production costs and increase profits and revenues. Minimised expenditure and increased revenues occur because the costs incurred when producing juice in small sizes and quantities is minimal as opposed to packaging them in large quantities. When firms package a product in a small and creative size, they are able to price it in a pocket friendly manner without compromising the cost of production and profits.
The size of Booster Juice should be small and creative so that it can appeal and increase the willingness of potential customers. The small and creative size of the product will not only appeal to the target customers, but also meet their financial abilities. By ensuring that the size of the product meets the working budget of the business and increases the sales, the firm will experience augmented profits and high revenues. High revenues and increased purchases will take place because of the appealing size of the product and the pocket friendly prices, which are within the purchasing power of the customers. The application of well-designed sizes and shapes of juice products materialise if the equipment used meets the required standards (Fung 100). As a result, consumer willingness increases and leads to high profits in the Booster Juice business.
Essentially, the design and packaging of the Booster Juice will materialise through cups and small containers. The manufacturing of cups and small containers will employ creativity, innovation, and colourful designs. By applying creativity, innovation, and colourful designs, the business will have the ability to increase the sales and supply the maximum amount of juice to its potential customers. According to Burton, Parker, and Lawley, since juice and other drinks are luxurious products, their manufacture and sale relies heavily on the amount of marketing and appeal that they have in the minds of the target consumers (70).
Therefore, it is imperative to ensure that the pre-consumption, consumption, and post-consumption experiences of the consumers match. By using modern equipment, which meets the required standards, the business will be successful in marketing and promoting its products to the target consumers easily and efficiently. Evidently, size and design of a product is a component that marketers and business firms cannot underscore in their quest to establish growth and development in their business ventures.
Location of the Business in Sydney
Location is one of the most important aspects in the growth and development of business ventures. Evidently, poor decisions concerning the location of product lead to dire consequences, while a successful decision on location is beneficial to any business. Losses and detriments that arise from poor location transpire because when a firm chooses a certain location for the manufacture and sale of its products, it has to invest, start, and run the operations of the venture.
Therefore, if the location is deficient of potential consumers, then the venture stands to lose since the level of sales will be low. Conversely, a right choice of decisions ensures that the marketers choose destinations that have the potential clients, who in turn purchase and consume Booster Juice. In the assertions of Fung, placement of the juice should be strategic in areas, where the target consumers are accessible so that they can see the product and purchase it (70). The need to place the products strategically implies that the right location for the product is a place that has several activities.
The regions that facilitate effective location of the Booster Juice include tourism destinations, churches, shopping malls, and downtown areas of the urban centres. These locations are strategic for various individuals comprising of the target consumers, who frequently visit there. Therefore, by marketing the products, the business will successfully reach out to the target clients and persuade them to purchase the product. The business venture can establish its offices in Nova Scotia region of Sydney, but it will open small sub branches in other regions and recruit charismatic and aggressive individuals, who will deal with the supply and advertisement of the products.
Burton, Parker, and Lawley, point out that diversification and the increment of the placement points raise the accessibility and willingness of the consumers to purchase a given product (70). It is important to understand that the absence of a product in a given location increases consumer reluctance and encourages them to purchase products from competing firms or substitutes. As a result, it is essential to ensure that although the business will have its main offices in one location, distribution or supply of the product should cover all locations presumed to have potential consumers.
Initially, the product will rent a small room and start its operations as it expands and increases its sales. Since the research identified families and individuals as the potential customers for the juice, the business will place itself at a strategic location, where these individuals reside or work. Advertisements, free samples, and discounts are some of the major tools used in creating awareness of products and facilitating their entry into the competitive market. The use of free samples enables a section of the potential clients to taste the products and inform others of their experience, while discounts persuade consumers to purchase the products and taste them.
The use if media such as televisions, radios, newspapers, and social sites on the Internet are very instrumental in informing the target clients of the new product in the market and persuading them to have a taste. According to Burton, Parker, and Lawley, discounting is one of the strategies that a business entity can employ in an attempt to enter into a competitive market (86). Therefore, a good location increases sales and profits, which are good ingredients in the growth and development of the Booster Juice business.
Conclusion
Booster Juice is a product manufactured using raw materials such as fruits and milk, which are natural, in its manufacture. The juice is a product that satisfies the demands of individuals, who are concerned with their health and nutrition. Families and individuals of all ages are some of the main target consumers of the juice. The fast nature of juice production helps the active and busy individuals in the society as they can enjoy the juice without failing to meet their datelines. It is important to package the products in small and colourful containers that do not only appeal to the eyes of the potential consumers, but also increase the willingness to purchase and consume Booster Juice.
Works Cited
Burton, Phil, Gary Parker, and Brian Lawley. 42 Rules of Product Marketing: Learn the Rules of Product Marketing from Leading Experts from Around the World. New York: Happy About, 2012. Print.
Fung, Chris. Juice Boost!: Juices, Smoothies & Boosters for Supercharged Health. London: Duncan Baird Publishers, 2013. Print.