2. Inspired by juice bars in the US
Nov.13th,1999, Dale Wishewan started the first Booster
Juice in Sherwood Park, Edmonton.
First mover in Canada
Grow the business by franchising
Healthy product offering & mass customization
11 “Boosters” & 38 varieties of beverages for its menu
International expansion
Successfully entered Saudi Arabia in 2004
Further expanded to Netherlands, US, Mexico, Brazil, and UK.
Challenges in Indian Market
INTRODUCTION TO
3. Q1: WHY IS BOOSTER JUICE NOT ACHIEVING
GREATER SUCCESS IN INDIA?
Inefficient use of some of the 4 P’s
Place/Location Challenge:
People from all socioeconomic classes
living together.
Difficulty in choosing the right location
for the target market.
Unsuccessful initial location decisions-
relocation expenses $35,000.
Price Challenge:
Not many Indians can afford the
premium prices of Booster Juice.
4. Q1: CONTINUED
Products:
Booster Juice offers product in different
sizes
Large, medium, and small
Indian Market Strategy:
Only offer medium and small sizes at lower
prices.
Customer service:
Workers are not interactive with customers.
Result: Customers not realizing the
products and their prices.
5. Q1: CONTINUED
Supply Chain Management:
Not finding the required local
suppliers in terms of quality.
Had to import products from
Canada – Extra Costs.
Delays due to importing
processes.
Indirect competition from local cart
juice vendors.
6. Q2: ANALYZE INDIAN’S BUSINESS
ENVIRONMENT.
PESTEL ANALYSIS
Political
Environment
• Largest
democracies in the
world
• Runs on federal
government
• Greatly influenced
by the government
policies
• Influenced by
politician’s interests
as well as the
ideologies of
political parties.
Economic
Environment
• 4th largest buying
power
• Rapidly growing
middle class
• GDP is about 7.46
billion dollar and
estimated to grow
to 7.75 by 2020
Social
Environment
• Population of 1.2
billion
• Consists of 28
states and 7
territories
• Complex social
structure
• Diverse cultures,
religions and
languages
7. Q2: PESTEL ANALYSIS CONT’D
Technological
Environment
• One of the
strongest IT
infrastructure in
the world
• Served both 3G
and 4G
• Technology is
widely used
• Technological
support and
services are
easily available
Environmental
• Poor air quality
• Presence of
environmental
pressure groups
• Early stages of
recycling and
waste material
reduction process
Legal
Environment
• Regulations such
as minimum
wage and gender
discrimination
8. Q2: PORTER’S FIVE FORCES
• Many
substitutes
• Lower prices
• Low switching
costs.
• Low loyalty.
• Low barriers
to entry.
• Easy to enter
the market
with cheaper
prices.
• Many suppliers
in India.
• Low switching
cost.
Power of
Suppliers:
Low
Threats of
New
Entrants:
High
Threats of
Substitutes:
High
Power of
Buyers:
High
Intensity of Rivalry:
Low
10. Q3: IDENTIFY MARKET SEGMENTS AND
CUSTOMERS FOR BOOSTER JUICE’S
PRODUCTS
Market Segmentation
Identifying unique consumer groups with distinct
purchasing habits and behaviors
Demographics
Geography
Sociocultural
Psychological
11. Q3: KEY ATTRIBUTES
Main market segment
Health conscious
Males and Females
Healthy, great-tasting and convenient alternative
Meal replacement
Fast-paced lifestyle
Health-oriented
Busy
Active
12. Q3: KIDS AND FAMILY
Significant purchasing power
Fantastic opportunity
Healthy products
Boost Energy
Little to no negative connotations with marketing to kids
How to do this?
School lunch programs
School fundraisers
Target families
May entice them to try Booster Juice products
13. Q3: EXERCISING AND ATHLETIC
MARKET
Could be used as a workout
snack or a post-workout meal
Celebrity endorsements
José Bautista in Canada
Cricket stars in India? E.g. Sachin
Tendulkar
Positive associations
14. Q3: MIDDLE AND UPPER CLASS
PRODUCT
Higher prices due to
differentiating features
Higher Fruit Content
Lower Ice Content
No Added Sugars or
Preservatives
Free Nutritional Supplement or
‘Booster’
Using ‘superfoods’ like Goji and
Açaí berries
15. Q3: INDIAN MARKET
Target market
Young, health-conscious
consumers
Aged 18 to 35
Main selling point
Offering a healthy, portable
meal
Convenience
Premium Product
Targeting upper and middle
classes
16. Q3: NICHE MARKETS
Appeal to wide variety of niche segments
People with nut allergies
Juices and Smoothies with no sorbet and Boosters
People who cannot consume gluten
Most products are gluten-free
Pregnant women
E.g. Go Girl and Fibre Boosters
Diabetics
Whey and Hardcore Smoothies
Vegetarians and Vegans
17. Q3: NICHE MARKETS AND ADDED BENEFITS
Through their ‘Boosters’
Protein and Power Boosters
Athletes: Protein and Creatine supplements
Warrior and Energy Boosters
People feeling ill: Fighting colds and boosting
immunity
Boogle Booster
People wanting energy boost: Increases mental
functions
Go Girl, Fibre, Combo and Wilderness
Booster
People wanting healthy snack: Calcium, fiber,
multivitamin supplements and antioxidants
18. Q4: WHAT WOULD HAVE BEEN THE OPTIMAL
ENTRY STRATEGY FOR BOOSTER JUICE IN
INDIA IN 2009?
• Franchising strategy was the best entry strategy to enter the Indian market
• Control the operations in India
• Point-of-sale (POS) system
• Facilitates and helps to manage the difficulties of doing business in India
• Fazel Naqvi, the master franchisor:
1. Well connected in the Indian retail industry
2. Knew the wave of demand for healthy snack foods and
3. Had the knowledge of doing business in India
19. Joint
Venture
• Booster Juice
business type
is not suitable
for a joint
venture
• Lack of
control
• Lack of trust
Licensing
• Lack of
control
• Can become
a competitor
after license
expires
Exporting
• High
transportation
costs.
• Perishable
good
• Less control
over
Marketing &
Distribution
Wholly Owned
Subsidiaries
• High cost
• Complex
social
structure.
• Diverse
cultures,
religions and
languages.
WHY NOT ?
20. Q5: WHAT WOULD BE THE PERFECT
MARKETING MIX FOR BOOSTER JUICE
IN INDIA?
Step 1: Identify the current stage in the product life-cycle
Growth stage
Step 2: Identify marketing objective
Increasing market share
Step 3: Identify the perfect marketing mix for Booster Juice in
India according to the current product life-cycle and marketing
objective
Product
Pricing
Place
Promotion
21. Q5: PRODUCT
Make full use of “POS” system to
Eliminate “Dogs”
Turn “Question Marks” and “Stars” into “Cash Cows”
Keep creating new products and observe consumers’ reactions.
Continuously take in consumers’ ideas.
Keep monitoring the quality and inventory level of the “Cash Cows”
Publicize the fact about “polystyrene cups”.
25. Q5: PRICING
Recommendations:
Keep their current pricing strategy
unchanged.
Increase market share.
Take advantage of home-grown resources in
India.
Take advantage of low fixed costs, devote more
into employee development.
Strive to achieve “more for even more” in product
position by providing superior service.
Occasionally downscale the price by offering
bundle prices or discount prices.
26. Q5: PLACE
Health-oriented, busy and active consumers
Commercial areas
Children and families
Affluent neighbors
Athletic consumers
Gymnasiums
Also consider to cooperate with major
cinemas.
27. Q5: PROMOTION
Butterflies
Short-term customers with high potential
of profitability.
Cease investing in them until the next time
around.
True Friends
Long-term customers with high
profitability.
Free advertisements.
Maintain a good relationship with them.
Barnacles
Long-term customers with low profitability
.
Potential threat.
Do everything possible to satisfy them.
28. Q5: PROMOTION
Recommendations:
Create some festival events according to
Indian culture.
Involve local celebrities in their
advertisements.
Create campaigns through social media.
Form strategic alliance with competitors.
Hire a manager with high education level and
social status in each store.
Membership cards and coupons for cinemas.
Sponsor for athletic competitions in India.
Get involved in Indian social welfare
activities.
29. Q6: SHOULD BOOSTER JUICE FOLLOW MCDONALD’S
STRATEGY BY “INDIAN-IZING” ITS STRATEGY?
● Should not completely copy McDonald’s
strategy.
Pure Localization Strategy
● Do need certain level of localization.
Pure Global / Standardization Strategy
● Find a Balance
Transnational Strategy
30. Q6: WHY NOT PURE LOCALIZATION?
● Similar tastes & preferences
● Different situations faced by McDonald’s and Booster
Juice
● Similar target consumer
● Transferable marketing efforts
● Relative high pressure for
cost reduction
● Potential to increase material costs
● Potential to increase R&D costs
● Potential to increase labour costs
31. Q6: WHY NOT PURE LOCALIZATION?
● Longer experience curve
● Lack of slack resources
● Consistency of brand image
&
Country of origin effect
32. CONCLUSION
Find a balance between over-globalization & under-globalization
Effective and efficient transnational strategy
Successful expansion into India –
one of the most popular emerging markets in the world
33. FURTHER
RECOMMENDATIONS
● Build integrated value chain
● Creative promotion
● Retained earnings for international promotion
activities
● Be consistent with “premium” brand image
● Continuous innovation
