Management Analysis of Boost Juice - Case Study Example

Management Analysis Name Institution Course Date Table of Contents Table of Contents 2 Executive summary 3 Introduction 4 Company Background 4 Competitive advantage of Boost Juice 5 The brand 5 Customer experience 6 The product 6 Promotional strategies 7 Sustainability practices and issues 7 Environmental stewardship 8 Social-well being 8 Economic development 9 Innovative retail concept 10 Human resource management practice 10 Boost Juice Internationalization 11 Technology management at boost juice 12 Future strategies for boost juice 12 Maintenance of Brand Image 12 Competency and sustainability strategies 13 Conclusion 13 References 15 Executive summary Boost Juice was established by Janine Allis in the 90s in her kitchen. Janine idea was different from other brand of juices; she added an exclusive innovation of blend juice and smothies combined and had incorporated some supplements including vitamin C, which emphases its mission of providing healthy and nutritious products. Janine opened the first Boost Juice Bar in 2000 in Adelaide. Over the years, the company has grown significantly with numerous Bar shops opened across the country. The company has grown to be the largest retail bars shop in Australia with over 200 shops internationally. Boost Juice has adopted sustainability practices in its operations catering for the social well-being of people, the environment and the economy. Introduction The main reason people choose a drink is to quench their thirst (Savona 2010). It is when customers demand for a specific brand that confirms that the marketers have done a good job (Levitt 2008). A lot of capital is spent in establishing branded drinks in the market such as carbonated beverages, fresh juice, milk drinks and water. One may be convinced that there is no space to grow the market in Australia since it is small. However, although there have been many failures in the Australian market, juice bars targeting consumers who are health-conscious have dramatically grown in many locations in the country especially in the shopping malls (Levitt 2008). In Australia, one of the big players is Boost Juice. Boost Juice was established by Janine Allis in the 90s in her kitchen. The founder was highly inspired by Jamba Juice’s stores. At the time of its establishment, the citizens had already adopted to the concept that juice bar is the healthier way to go. This report will highlight the competitive advantage of Boost Juice that would help in analysing and discussing the sustainability strategies and issued related to the company. The report will finally provide recommended future strategies management should engage in based on the analysis. Company Background Janine idea was different from other brand of juices; she added an exclusive innovation of blend juice and smothies combined and had incorporated some supplements including vitamin C, which emphases its mission of providing healthy and nutritious products. Janine opened the first Boost Juice Bar in 2000 in Adelaide (Allis 2013). From that point, the company adopted franchise system. Over the years, the company has grown significantly with numerous Bar shops opened across the country. The company has grown to be the largest retail bars shop in Australia with over 200 shops internationally (Allis 2013). Boost Juice Bars’ focus on smothies; skinny smothies, low-fat smothies, Sporty smothies and lite smothies, Juice; usually made in response to order from fresh fruits, crushed; tropical crush, berry crush, mango crash etc., complementary products; drinks, various snacks, yoghurt and fruits, Supermarket range; bottle juice, snacks and frozen yoghurt (Higham 2009). Due to the success of Boost in Australia, it decided to go international in 2004 (Manzies and Orr 2014). The company has opened juice bars in the United Kingdom, Thailand, China, Korea, Singapore, South Africa, Indonesia, Hong Kong to name a few. According to a research, Boost Juice is operating in more countries than any other Juice company in the world. In an era of obesity among people, Boost found a market gap of providing healthy alternatives to fast foods which is booming not just in Australia but in the world. This market niche is considered ‘wellness category’. Boost Juice became famous in the media due to providing a new experience to the citizens. The company is very important to the Australians and international individuals more so due to providing healthy alternative and helping in eradicating of diseases such as obesity (Zimmet 2010). Boost Juice is termed as a global brand established on a strong management and marketing foundation (Samson and Daft 2011). This led to its brand achieving 94% awareness in its first five years of operation. Competitive advantage of Boost Juice The brand Boost Juice enjoys a competitive advantage through its brand and culture that has over the years been created upon positive attitudes (Fung 2013). Boost is known to screen its employees and franchises by considering personality that relates to Boost Juice culture. The company’s vision and brand have generally been built upon consumer experience served by efficient, friendly and effective people around a positive and energetic surroundings (Allis 2013). Customer experience Boost Juice culture has positioned the company above the competitors (Allis 2013). The company has operated for a substantial amount of time and has enough experience in dealing with the customers. The company often learns from the customers by listening to them and reviewing their feedbacks for improvement purposes. The company has developed Boost Guarantee in every store and always encourage the consumers to contact in case of any complaints. The company ensures that they respond to the feedback by forwarding the feedback to the relevant member in the support network who then takes appropriate action (Allis 2013). The product Boost Juice Bars do not use any artificial additives to the smothies and the juices. In addition, the smothies are 98% fat free (Allis 2013). Although its products have been reduced fat content, the nutritional value and goodness is still favourable. In addition, the company has worked for a long time on the TD4 yogurt formula ensuring that the smothies have exceptional taste and good bacteria. The above mentioned concepts relating to the competitive advantage of Boost Juice has contributed to its growth and expansion of its market (Allis 2013). Boost Juice’s success is not only attributed to the innovative menu of healthy and tasteful products, but also a fantastic brand and effective customer service. Promotional strategies Boost juice often makes use of unique marketing approach which involves healthy product offering and advertising promotion (Solomon, Cornell and Nizan 2009). The company uses sale promotions such as providing opportunities for customers to take part in contests and reward programs. The company’s strategy of using sales promotion activities has led customers to impulse buy thereby increasing immediate sale for the company. The company also uses advertising. Boost Juice considers advertising as a mode of communication reaching the potential customers and establishing brand loyalty (Allis 2013). Boost Juice target customers through television, magazines or radios. Influence of seeing, hearing and reading has strengthened the company’s brand and resulted in the long-term increase in sales volume. Sustainability practices and issues Economic, social-wellbeing and environmental sustainability actions tend to meet the needs of the external and internal business environment in addition to preserving the capabilities of the future generation to fully meet their needs (Kotler et al 2009). Marketing and operational sustainability is all about satisfying the needs of the consumers and putting emphasis on social and environmental issues in addition to generating profits in a responsible way (Moscardo 2006). More and more organisations have adapted sustainability practices in their operations and marketing; one of the companies being the Boost Juice (Kampf 2007). Companies emphasizing on sustainability acquire higher competitive advantage and long-term success of the organisation (Mahler 2007). Boost Juice has adopted sustainability practices in the below mentioned concepts. Environmental stewardship Environmental stewardships may involve conservation of resources, reducing in pollution activities, using renewable products and maximizing on recycling (Jamrozy 2006). Boost Juice researched on the possible products with fewer effects on the environment to use as a packaging material. The company settled for polystyrene since it does not break down or poison the environment. After years of research, the company found a better product; the paper cup. Boost juice has converted all of its inlets to using the paper cups. The company endeavour searching for new ways of reducing environmental pollution. In addition, Janine Allis commit to planting 10,000 trees annually. Till today, she has planted over 100,000 trees (Allis 2013). The company also is aimed at reducing the amount of rubbish released to the environment. They do this by using their Boost Enviro Cups in every outlet. To encourage the use of the Boost Enviro Cups, the company offers $1 off in the product purchased every time an individual brings the cup for a refill, thus encouraging recycling (Allis 2013). Apart from being renewable, the Boost Enviro cups are printed using non-toxic ink and are not harmful to the environment; it is biodegradable and is manufactured using sustainable resources. Social-well being An organisation can be socially responsible if it takes part in activities such as improving labour conditions, improving communities, producing socially responsible and safety commodities and services (Kotler and Armstrong 2012). Boost Juice is committed to offering healthy alternatives in this era of growing childhood obesity (Zimmet 2010). This has led to their massive growth of approximately 30 stores annually and revenue beyond AUD$158,000,000 in 2014 financial year. From inception, it has acquired a revenue of above 1.3 billion dollars. Australian is considered a country that is ‘gaining weight’. Therefore, Boost Juice has taken the position of providing juice and smothies that have fewer calories and of nutritional benefit. In addition, Boost Juice has created employment to many individuals through their franchising model (Bachan 2013). In 2013, it was reported that approximately 40% of franchising partners reinvested in the brand and owned their Boost Juice business (Bachan 2013). Also, with regard to the employees working for the company, their conditions and environment is conducive for serving their customers well. Economic development Sustainability in terms of economic development may involve promoting generation of revenue, creation of employment, enhancing competitiveness, reducing costs and attracting jobs (Belz and Peattie 2009). As stated earlier, Boost Juice has positioned itself over its competitors due to their brand and culture, exceptional customer service and healthy and excellent taste of their products. Therefore, these have enhanced the company competitiveness thereby promoting economic development. Boost Juice experienced a 257% growth in the period of 2003/2004 with only 100 stores in Australia and revenue of over $20 million. The company has grown over the years yielding more turnovers and enhancing economic development for Australia. In addition, Boost Juice has created employment to many individuals through their franchising model (Bachan 2013). Innovative retail concept Although juice bar was new for Australia, the means by which Boost Juice presented innovative retail concept was also new to retail (Fung 2013). The company was not just about the healthy and tasteful juice and smothies. Its brand relies entirely on Boost experience that is witnessed every time a customer enters a Boost store. Boost brand is a combination of good taste and healthy juice and smothies served by energetic and friendly people who often greet a customer with a smile and calling their first name in a colourful store surrounding with good music to match (Allis 2013). In addition, innovative concept is also seen in their tactful campaigns and essential customer service approach where every feedback from the customer is responded within 24 hours. VIBE Club developed by Boost Juice is a loyalty program that often reward loyal customers and create fun for them (Fung 2013). Human resource management practice Human resource management practices are activities that tend to attract, maintain and enhance effective and operative personnel within a company (Shermon 2004). The major responsibility of Human Resource Management is to bring organisational performance. Retail business provides an ever-changing environment. Human resource management in the retail environment can guide the employees in order to enhance the business. In Boost Juice, human resource management practices adopted include recruitment, payroll, organisational development, performance management, policies and procedures and employee relations (Allis 2013). In terms of recruitment, human resource team in Boost Juice assists its stores to identify and establish the best individuals in their business. Also, the company ensures that their employees are paid on time and in line with the correct award. The company also takes part in practices that change its individuals in enhancing its growth, such as mentoring and coaching (Allis 2013). The human resource also carries out performance management that ensures improvement, learning and development in order to attain overall business strategy. Human resource also establishes a framework that guides how employees should conduct themselves and also strengthens the relationship between employees by measuring job satisfaction and resolving workplace conflict. Boost Juice Internationalization Business should deal with economic and political issues when they go international (Wankel and Malleck 2012). Foreign organisations can be seen as outsiders and intruders and local people and organisations may be suspicious of their impacts on political and economic factors. Boost Juice has appointed Master Franchisees who are operating internationally in countries such as Singapore, Chile, United Kingdom, South Africa, Malaysia to name a few (Bachan 2013). Boost’s international approach recognises that people around the world have differing values, cultures, media habits, taste and preferences and purchasing powers. The company ensures that their message is persuasive as it is in Australia by working with partners and experts in their regions in order to know how far to adopt. Core Boost brand globally remains around healthy, tasty and fun. Promotional activities are localised for different cultures and languages, but remain true to its identity. Boost has established core range of their famous drinks in every country and customised drinks for each market. For instance, the company as customised products such as Rooibos (South Africa), Cherimoya (Chile) and Aloe Vera (Lithuania) to meet the needs of each market (Allis 2013). Generally, Boost Juice has adopted international sustainability by providing healthy and tasty products and providing customized products according to country’s tastes and preferences. Technology management at boost juice Information technology over the years has transformed management in business (Banfante 2013). Boost has adopted digital revolution that has changed their operation. Information technology in organisations entails hardware, software, database management to name a few. The company has embraced Facebook, Digital posters, Pay Wave and Boost App in their operations. Boost App enables customer order product in advance (Allis 2013). Technology has made it easy for the company to communicate to the customers and receive feedback from them. Marketing opportunities are easily communicated through the social media. Boost App is one of the successful technologies adopted by Boost Juice. It has received 250,000 downloads in only three months after its launch. Boost Juice is using technology in its marketing and also decision making (Allis 2013). The company use technology to gather knowledge of its market and make it available and encourage a culture of learning and making decisions. Future strategies for boost juice Maintenance of Brand Image Boost has enhanced its brand awareness by focussing on customer’s demand (Allis 2013). They have focussed on providing healthy alternatives for its customers. Boost has recently introduced healthy bottled juices for the customers who do not have time to access Boost Juice Bar. These bottled juices are found in retail stores and can be delivered on order. However, although customers are focusing more on healthier alternatives, they are also looking at environmental factors. Bisphenol A, a chemical used in plastic products has been linked to liver abnormalities, heart diseases and diabetes (Francis 2011). BPA from plastic bottles can be ingested in the body once heated as it sinks to the liquid in the bottle (Francis 2011). Use of plastic bottles can make Boost Juice loose profits since consumers have been made to fear plastic bottles. Use of stainless steel or plastic bottles free from BPA can assist Boost Juice further advance their brand image and also increase safety and wellbeing of the community at large, thereby enhancing social sustainability. Competency and sustainability strategies Boost Juice is involved in promoting economic, social and environmental sustainability (Wyk 2014). However, the company can improve on this by enhancing employees’ sustainability by developing personal sustainability programs involving the employees such as concepts ranging from using energy saving bulbs in their houses to encouraging responsible acts such as quitting smoking. This strategy can enable Boost Juice to develop competent employees and enhance their productivity (Nanda 2005). Conclusion In conclusion, Boost Juice has tremendously grown over the years by emphasizing healthier alternatives that target large audience, developing friendly employees and enhancing its brand and culture. Due to the success of Boost in Australia, it decided to go international in 2004. The company has adopted sustainability practices in relation to economic development, environmental conservation and promoting social well-being of the community. The company practices environmental, economic and social sustainability by using renewable Boost Enviro Cups to prevent pollution, provide healthy alternative drinks to the customers and has enhanced its competitive advantage that has contributed to economic development. Boost Juice has incorporated technology in its marketing and operational strategies, and has undertaken Human Resource Management role in enhancing effectiveness of its personnel and franchisees. References Allis, J 2013, The secrets of my success the story of boost juice, juicy bits and all, Milton, Qld: Wiley. Belz, F-M. & Peattie, K 2009, Sustainability Marketing: A Global Perspective, Chichester, Wiley. Bonfante, L 2013, Lessons in it transformation technology expert to business leader, Hoboken, N.J: Wiley. Buchan, J 2013, Franchisees as consumers benchmarks, perspectives and consequences, New York, NY., Springer. Francis, R 2011, Never fear cancer again : how to prevent and reverse cancer, Deerfield Beach, FL: HCI. Fung, C 2013, Juice boost! : juices, smoothies & boosters for supercharged health, London, Duncan Baird Publishers. Higham, W 2009, The next big thing spotting and forecasting consumer trends for profit, London Philadelphia., Kogan Page Ltd. Jamrozy, U c.2006, Marketing of tourism: a paradigm shift towrd sustainability, Emerald Insight, . Kampf, C 2007, ‘Corporate Social Responsibility Walmart, Maersk and the cultural bounds of representation in corporate web sites’, Corporate Communications:An International Journal, vol. 12, no. 1, pp. 53-55. Kotler, P, Adam, S, Denize, S, & Armstrong, G 2009, Principles of marketing, 4th edn, Pearson Education Australia, Frenchs Forest, NSW.pp.345 Kotler, P & Armstrong, G 2012, Principles of Marketing, Pearson Prentice Hall, New Jersey Levitt, T 2008, Marketing myopia. Boston, Mass: Harvard Business Press. Mahler, D 2007, 'Spotlight on Supply Management: The Sustainable Supply Chain', Supply Chain Management Review, pp. 59-60. Menzies, J & Orr, S 2014, Internationalization of Boost Juice to Malaysia. Asian Case Research Journal, 18(01), 175-197. http://dx.doi.org/10.1142/s0218927514500072 Moscardo, G 2006, Sustainability in Australian Business: principles and practice,New York, Springer. Nanda, V 2005, Quality management system handbook for product development companies, Boca Raton, Fla: CRC Press. Samson, D & Daft, R 2011, Management, South Melbourne, Vic., Cengage Learning. Savona, N 2010, The big book of juices : more than 400 natural blends for health and vitality every day, London New York: Duncan Baird Publishers Distributed in the USA and Canada by Sterling. Shermon, G 2004, Competency based HRM : a strategic resource for competency mapping, assessment and development centres, New Delhi, Tata McGraw-Hill. Solomon, M., Cornell, L. & Nizan, A 2009, Launch! : advertising and promotion in real time, Irvington, N.Y. Minneapolis: Flatworld Knowledge, Open Textbook Library. Wankel, C & Malleck, S 2012, Ethical models and applications of globalization: cultural, socio-political and economic perspectives, Hershey, PA: Information Science Reference. Wyk, K 2014, Best green drinks ever : boost your juice with antioxidants, protein and more, Woodstock, VT., Countryman Press. Zimmet, P 2010, Obesity in Australia: People, politics and prevention, Obesity Research & Clinical Practice, 4, S86. http://dx.doi.org/10.1016/j.orcp.2010.09.168 Read More