Sobah Beverage

Discuss about the new product that is currently trending in the Australian foods and drinks consumer market.

The retail industry invests a lot of capital in new technologies, and this is why the sector continues to thrive in new product innovations in the market. In particular, the food and drink market has rapidly evolved in Australia due to advanced creativity and innovation in most companies (Baker, 2016, p. 40). A number of new food and drink products have been innovated and recently launched in the Australian market to satisfy the increased market and consumer demands. The report will focus on one new product that is currently trending in the Australian foods and drinks consumer market, whose name is Sobah Beverage. The increasing interest by the society to see a more health-aware generation that avoids alcohol altogether has led to the innovation of Sobah Beverage brand.

The product brand “Sobah Beverage” is a newly innovated and introduced product in the Australian market. Sobah Beverage is a premium non-alcoholic craft beer infused with Australian (native) spices and fruits. The product is more healthy for use to the younger generation. The main aim to innovate the brand was to reduce the increasing rates of alcohol consumption by the youths in Australia (Foster, West and Francescucci, 2011, p. 15). The ingredients used in making the Sobah Beverage comprise of the Carveza variant that has finger lime (gulalung), an Australian native citrus fruit which provide a zesty flavor with slight bitterness taste to the consumers.

Sobah Beverages as a brand is offered by the Australian retailers to the younger generation. The main target market for this product brand is the youth (both boys and girls). The increasing interest of the society to breed a more heath and educated generation of the youth and increased campaigns to reduce and increase alcohol consumption avoidance by the younger generation has led to the innovation of Sobah Beverage that has no alcohol content in it (Hassan and Craft, 2012, p. 315). The brand targets to reduce the increasing consumption of beer by the younger people who are under eighteen years of age.

Food and beverage products are deeply rooted to the Australian culture. Sobah Beverage nurture consumers body, health, soul, and hearts. The value of this brand in the Australian market is incredible, and this is manifest in the high demand for the product by the younger generation (Guthrie, Cuganesan, and Ward, 2008, p. 16). The brand has established sustainable domestic connections between the retailers and the consumers. The major vision of launching this product brand in Australian market is reducing alcohol consumption by the younger generation and optimizes health living to the populations.

Target Market

The Australian society has been bombarded by alcohol advertisements. Alcohol is a bizarre product that is ubiquitous globally for many centuries. However, the innovation of Sobah Beverage is helping greatly to reduce alcohol abuse in Australia. The product is being launched in the market with intensive marketing campaigns and also highly advertised and promoted in the online social media platforms (Huang and Sarigöllü, 2014, p. 130). Currently, the product is highly demanded, valuable, and competitive in the Australian foods and beverages industry.

The launch of Sobah Beverage in the Australian market has been successful, and this is the major reason behind the brand’s strong position in the market (Goi, 2009, p. 2). Sobah Beverages’ marketing mix is explained below:

Product: The new brand product offered in the market is Sobah Beverage. The product is non-alcoholic whose main consumers or target market is younger generation. Launching Sobah Beverage in the Australian market aims at reducing alcohol abuse by the youths. Sobah Beverage is of high quality.

Price: The product is highly saturated in the Australian market given that it is made of Australian spices and fruits. The producers and retailers offer the Sobah Beverage in different quantities and sizes. The price is average and affordable to the customers. For instance, a 300ml Sobah Beverage goes for Rs. 20 and 1 liter for Rs. 90.

Promotion: The new product is highly promoted and marketed in the Australian market through social media platforms (Facebook, Instagram, Twitter), Google Ads, Television Ads, and the internet. As a result, Sobah Beverage is available at all Australian markets and is being used by nearly all youths due to the use of proper promotional tools.

Place: The main distribution channel for Sobah Beverage is intermediaries and mainly the Australian retailers such as Woolworths and Wesfarmers. Other small retailers and wholesalers in the Australian market sell the product to the customers (Tapp and Spotswood, 2013, p. 210). As a result, the product is competing other beverages in the market and positioning itself strongly with high sales.

The main market segmentation for Sobah Beverage lies in the demographic factors mainly in the age and income of the consumers. Also, geographic and psychographic segmentation matter to the success of this brand in the Australian market.

Age and income segmentation: The market for Sobah Beverage is composed of the younger generation who normally has low and limited sources of income. People aged between 15-30 years form the product market. The income level for this age group is below average, and this is why the product is sold at average prices.

Value Proposition

Geographic and psychographic segmentation: The product is offered in all Australian cities and regions. Currently, Sobah Beverage is segmented to all geographic areas in the country. On the other side, the psychographic segmentation cuts across the parents, students, and children who have accepted the product in the market.

The target market is younger generation aged between 15-30 years. The product image and features are of high quality and capture customers’ consciousness. The sobah beverage is non-alcholic and is infused with native spices and fruits. Recent research shows that male consumers consist of 60 percent of the market leaving the rest to the ladies (Rahbar and Abdul Wahid, 2011, p. 80). The product is highly preferred by youth aged 15-22 especially the students at both secondary and tertiary institutions.

The “Sobah Beverage” is a highly valued and preferred non-alcoholic drink in the Australian market and is strongly branded in the younger generation market across the country. Companies must understand the importance of identifying and reinforcing the value proposition of a new brand in the market (Moore and Pareek, 2009, p. 70). A strong customer value proposition enhances a product’s competitiveness and sustainability in the targeted market. In this regard, Sobah Beverage has a strong value in the Australian market due to its strong sense of nurturing consumers’ body, health, soul, and hearts. The value of Sobah is very high in the market, and the high demand for the brand in the Australian market justifies this reasoning.

Sobah Beverage is positioned as a premium category product in the Australian market. As a premium product in the market, the product’s position has been maintained with the producers always seeking to advance its awareness and sales in the market. This has been important since it inspires more sales and awareness to the target market.

The product is highly promoted in the market to raise its awareness and positioning in the market. Use of right communication techniques and language is employed in marketing the product (Belz and Peattie, 2012, p. 20). Unique and new features are continuously added to the product, and this has increased the value propositioning of the brand in the target market.

In the marketing mix, the new product under investigation is Sobah Beverage; which is a non-alcoholic drink and has the younger generation as its main target market. The beverage has been launched in the market recently to reduce the increased rates of alcohol consumption by the youths (Mayer, Melitz, and Ottaviano, 2014, p. 500). The Sobah Beverage product elements and functions that communicate its value proposition in the market include:

Marketing Mix

Native fruit and spices: Sobah Beverage product is made of Australian fruits and spices. The major function of these components is to ensure that the Australian culture is incorporated into the product since this forms the main target market.

Finger lime: Finger lime, largely known as (gulalung) is a cerveza variant which is a native citrus fruit that is included when forming the beverage to bring a slight bitterness test to the drink. The major function of this cerveza is creating a slight bitter taste in the product at least to differentiate the product from other forms of non-alcoholic beverages.

Zesty flavor: This is another Sobah Beverages’ element that is used to add flavor to the product and ensure its taste is unique to the consumers.

Sobah Beverage, the non-alcoholic drink tastes better than ever. The product is charged differently according to the quantity and size packed by the retailers. For example, a 300ml Sobah Beverage goes for Rs. 20 and 1 liter for Rs. 90. Sobah is a fresh, light, and crisp taste beverage which is chemical free. The major elements of pricing that communicate Sobah’s value proposition to the Australian market include:

Customers: The main target market for Sobah are younger generation aged 15-30 years. Their income levels is expected to be below average and so the prices charged will be reasonable. The main function of customers element in pricing is determining their income level hence helping in the prices to charge. In this case, prices range from Rs. 20 to Rs. 90.

Cost of product elements: The cost for finger lime, native fruits and spices, and zesty flavor also help in setting the price for Sobah. The producing company ensures that the cost of raw materials does not exceed the returns of the product sales to the company.

Positioning: The value proposition of Sobah is 100 percent will excellent customer satisfaction levels. Since the target market have average income, the brand is cheaper and of high quality hence increased sales.

Since Sobah has no warehouses to store and distribute the beverage to the market, the product is distributed to the target market by retailers and wholesalers in the Australian market. The use of intermediaries helps in the distributed of the product across the country. As a result, the product is competing other beverages in the market and positioning itself strongly with high sales (Addis, 2009, p. 79). The major elements of placement that communicate Sobah’s value proposition to the Australian market include:

Market Segmentation

Transportation: Sobah is transported and distributed from the producer by the retailers and wholesalers who supply the product across Australia. Through this ensuring that Sobah reaches the desirable places where customers demand them, the value of the product remains high.

Inventory: The raw materials used in producing the Sobah Beverage are cheaply acquired and delivered to the company by the local community. The quanity of stock stored in the producer’s jurisdiction is controllable in order to limit the amount of money invested in storing raw materials.

Warehousing: Only a few Sobah Beverages are stored in the company’s warehouse. The product is fast moving and in most the times it is in the hands of the retailers and wholesalers. This has helped in increasing the value proposition of the brand in the entire country since it is not convenient to establish warehouses at all locations in Ausralia.

The success of Sobah in the Australian market is associated to its excellent and unique promotional campaigns across social media, online Ads, Television Ads, and roadshow campaigns. The product is offered at discount prices and retailers receive after sales services which are shared with the customers’ appropriately (Lynn, 2011, p. 10). The major elements of promotion that communicate Sobah’s value proposition to the Australian market include:

Sales promotion: In its advertisements, the discounts offered to customers on the purchase of the product are included. When a new price cut has been introduced on Sobah, this is promoted to the target market immediately through web adverts, social media platforms, and media advertisements. As a result, the value proposition of Sobah increases in the Australian market.

Direct marketing: The product is also sold directly to the Australian target market rather than using intermediaries and retailers in the distribution channel (Koplan and Brownell, 2010, p. 1488). Telemarketing, catalogs, promotional materials, and mailed brochures are the main direct marketing channels used to promote Sobah. As a result, its value propositions continue to grow.

Digital marketing: Sobah is marketed digitally to the target market, and this covers a lot of ground from content, web sites, search engine, and social media marketing. Since most youths use smartphones and access the internet, this method helps increase Sobah’s value proposition in the market.

Conclusion

The proper integration of marketing mix (product, price, place, and promotion) helps in delivering a valuable proposition of a brand product in the market. Establishing reasonable and fair price charges on the Sobah Beverage together with ensuring that the brand quality and features supersede its price has ensured 100 percent customers satisfaction hence increased value propositioning of the brand in the market. Also, the use of effective distribution channels has ensured that the product is timely available to the target market place in the right time and quantity that meets customers’ demands and need hence broadening its value proposition too. Further, the adoption of excellent promotional campaigns that suit and address the target market effectively has helped in increasing the sales and competitiveness of the brand in the non-alcoholic drinks market of Australia. Therefore, a proper integration of marketing mix helps in increasing a product’s value proposition to the target market.

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