Booster Juice: Bringing Canadian Smoothies to the Indian market

Booster Juice: Bringing Canadian Smoothies to the Indian marketGroup 4Jasmine WangLeasy LiAbdullah Bin GubairAbdul Aziz AlsayedKai Haverila

Inspired by juice bars in the USNov.13th,1999, Dale Wishewan started the first Booster Juice in Sherwood Park, Edmonton.First mover in CanadaGrow the business by franchising Healthy product offering & mass customization11 Boosters & 38 varieties of beverages for its menuInternational expansionSuccessfully entered Saudi Arabia in 2004Further expanded to Netherlands, US, Mexico, Brazil, and UK.Challenges in Indian Market

INTRODUCTION TO

Q1: Why is Booster Juice not achieving greater success in India?

Inefficient use of some of the 4 Ps 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.

Q1: continuedProducts: Booster Juice offers product in different sizesLarge, medium, and smallIndian 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.

Q1: continuedSupply 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.

Q2: Analyze Indians business environment.

PESTEL Analysis

Q2: PESTEL Analysis CONTD

Q2: Porters Five Forces

Intensity of Rivalry: Low

Q2: ConclusionThe Indian market/industry is attractive.

Requires careful analysis before entry.

Q3: Identify market segments and customers for Booster juices ProductsMarket SegmentationIdentifying unique consumer groups with distinct purchasing habits and behaviorsDemographicsGeographySocioculturalPsychological

Q3: Key attributesMain market segmentHealth consciousMales and FemalesHealthy, great-tasting and convenient alternativeMeal replacementFast-paced lifestyleHealth-orientedBusyActive

Q3: Kids and FamilySignificant purchasing powerFantastic opportunityHealthy productsBoost EnergyLittle to no negative connotations with marketing to kidsHow to do this?School lunch programsSchool fundraisersTarget familiesMay entice them to try Booster Juice products

Q3: Exercising and Athletic MarketCould be used as a workout snack or a post-workout mealCelebrity endorsementsJos Bautista in CanadaCricket stars in India? E.g. Sachin TendulkarPositive associations

Q3: Middle and Upper Class ProductHigher prices due to differentiating featuresHigher Fruit ContentLower Ice ContentNo Added Sugars or PreservativesFree Nutritional Supplement or BoosterUsing superfoods like Goji and Aa berries

Q3: Indian marketTarget marketYoung, health-conscious consumersAged 18 to 35Main selling pointOffering a healthy, portable mealConveniencePremium ProductTargeting upper and middle classes

Q3: Niche marketsAppeal to wide variety of niche segments

People with nut allergiesJuices and Smoothies with no sorbet and BoostersPeople who cannot consume glutenMost products are gluten-freePregnant womenE.g. Go Girl and Fibre BoostersDiabeticsWhey and Hardcore SmoothiesVegetarians and Vegans

Q3: Niche markets and added benefitsThrough their BoostersProtein and Power BoostersAthletes: Protein and Creatine supplementsWarrior and Energy BoostersPeople feeling ill: Fighting colds and boosting immunityBoogle BoosterPeople wanting energy boost: Increases mental functionsGo Girl, Fibre, Combo and Wilderness BoosterPeople wanting healthy snack: Calcium, fiber, multivitamin supplements and antioxidants

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 marketControl the operations in India Point-of-sale (POS) system Facilitates and helps to manage the difficulties of doing business in IndiaFazel Naqvi, the master franchisor:Well connected in the Indian retail industryKnew the wave of demand for healthy snack foods and Had the knowledge of doing business in India

Joint Venture

Booster Juice business type is not suitable for a joint venture Lack of controlLack of trust

Licensing

Lack of control Can become a competitor after license expires

Exporting

High transportation costs. Perishable goodLess control over Marketing & Distribution

Wholly Owned Subsidiaries

High cost Complex social structure.Diverse cultures, religions and languages.WHY NOT ?

Q5: What would be the perfect marketing mix for Booster Juice in India?Step 1: Identify the current stage in the product life-cycleGrowth stageStep 2: Identify marketing objectiveIncreasing market shareStep 3: Identify the perfect marketing mix for Booster Juice in India according to the current product life-cycle and marketing objectiveProductPricingPlacePromotion

Q5: product Make full use of POS system toEliminate DogsTurn Question Marks and Stars into Cash CowsKeep creating new products and observe consumers reactions.Continuously take in consumers ideas.Keep monitoring the quality and inventory level of the Cash CowsPublicize the fact about polystyrene cups.

Q5: pricing

Q5: pricing

Q5: pricing

139 Rupee = 2.8 CAD, 4.75 CAD-2.8 CAD=1.95 CAD

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.

Q5: PlaceHealth-oriented, busy and active consumersCommercial areasChildren and familiesAffluent neighborsAthletic consumersGymnasiums

Also consider to cooperate with major cinemas.

Q5: Promotion

ButterfliesShort-term customers with high potential of profitability.Cease investing in them until the next time around.True FriendsLong-term customers with high profitability.Free advertisements.Maintain a good relationship with them.BarnaclesLong-term customers with low profitability .Potential threat.Do everything possible to satisfy them.

Q5: PromotionRecommendations: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.

Q6: SHOULD BOOSTER JUICE FOLLOW MCDONALDS STRATEGY BY INDIAN-IZING ITS STRATEGY?Should not completely copy McDonalds strategy. Pure Localization Strategy Do need certain level of localization. Pure Global / Standardization Strategy Find a Balance Transnational Strategy

Q6: WHY NOT PURE LOCALIZATION?Similar tastes & preferencesDifferent situations faced by McDonalds and Booster JuiceSimilar target consumerTransferable marketing effortsRelative high pressure for cost reductionPotential to increase material costsPotential to increase R&D costsPotential to increase labour costs

30

Q6: WHY NOT PURE LOCALIZATION?Longer experience curve

Lack of slack resources

Consistency of brand image & Country of origin effect

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

FURTHER RECOMMENDATIONS Build integrated value chainCreative promotionRetained earnings for international promotion activitiesBe consistent with premium brand imageContinuous innovation

Thank you for listening!Any Questions?