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Digital Marketing Strategy For Bundaberg
  • 7

  • Course Code: DATA4700
  • University: Kaplan Business School
  • Country: Australia

Your Task

You have been engaged as a consultant to advise Bundaberg ginger beer, the iconic Australian non-alcoholic beverage. Bundaberg is looking for your advice on how to enhance their digital marketing approaches, especially given that a new generation of young adult consumers in Australia are increasingly likely to be ordering their groceries online instead of browsing the shelves of supermarkets.

This is a timely opportunity for Bundaberg to consider how to be top of mind amongst this target segment, when compared to other non-alcoholic beverages that these young adults might also be thinking about.

•    The first step in your consulting services to Bundaberg is to visit the brand’s website and also to understand a bit about its history:

Website: https://www.bundaberg.com/
History: https://www.bundaberg.com/about-us/

The digital transformation opportunities that Bundaberg are choosing to pursue could very well establish a competitive advantage for them within this retail beverage space. Bundaberg is looking to you to provide expertise on how they formulate and implement their ongoing digital transformation, to set themselves up for success in the future.

Assessment Instructions

Your report should have the following headings and address the topics below:

1.    Introduction: A brief summary of the situation in the case study and what you, as a consultant, have been tasked with doing for your client

2.    Data: An indication of:

-    What data you are able to obtain through public searching about Bundaberg
-    What further data you would like to receive from Bundaberg directly
-    What additional data you will have to collect for your consulting work

3.    STP: Your recommendations on:

-    How to approach segmenting the market
-    Which segment you wish to target
-    How to position Bundaberg for that target segment

4.    Marketing mix: After you have positioned Bundaberg, indicate:

-    What your proposed product or service should be (e.g., should it remain as is, or do you have suggestions on how to change it to pursue a stronger competitive advantage?)
-    How you will promote the product or service to the market (e.g., using your digital assets)
-    The place that customers should access the product or service (e.g., digital channels of distribution)
-    Pricing strategy for the product or service (e.g., tactics to use; understanding value to the customer)

5.    Marketing costs: What fixed, variable and marginal costs are most relevant to this case study?

6.    Customer relationships: Your recommendations on:

-    What Bundaberg should do with customer relationship management
-    What Bundaberg can do to acquire new customers

7.    A/B testing and Multivariate testing: State what A/B testing and multivariate testing you would like to conduct, and why

8.    Conclusion: Summarise the most important recommendations you are proposing that Bundaberg should address first, and what metrics Bundaberg should look at to understand whether your advice has produced beneficial outcomes

9.    Statement of Intent: You will write a short statement of intent which addresses:

(1) who your target audience is for the report, in the context of your consulting activity for Bundaberg; and
(2) what techniques you have used to connect with that audience and improve the readability of your report for that audience.

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ANSWERS

Introduction

Bundaberg ginger beer, a popular Australian non-alcoholic beverage, is at a critical marketing point. With the digital landscape changing quickly, the brand must adapt and innovate (Del Giudice et al., 2021). Online grocery shopping, especially among young Australian adults, is a challenge and an opportunity (Bates et al., 2023). While supermarket shelf browsing declines, brands can engage, influence, and convert potential customers online. 

This digital shift increases competition between brands for the same audience. Bundaberg has hired a consultant to improve its digital marketing strategy. The objective is to keep Bundaberg in young adults' minds when they think of refreshing non-alcoholic drinks. 

The consultant must examine Bundaberg's digital strategy, its rich history, and how to reach the next generation of consumers using modern digital tools and strategies. This report outlines Bundaberg's digital transformation roadmap to stay relevant and competitive in the digital retail beverage space.

Data

Data obtained through public searching

•    Bundaberg's Public Profile: Bundaberg, an Australian brand specialising in non-alcoholic beverages, is known for its ginger beer as a flagship product.
•    Products: Different ginger beer and non-alcoholic drink flavours are available.
•    History: Bundaberg has a long history of traditional brewing methods, dating back decades.

Data Requirements 

•    Sales Data: Top-selling products, seasonal trends, and customer demographics.
•    Digital Metrics: Website traffic, user engagement, conversion rates, and digital ad campaign data (Purnomo, 2023).
•    Customer Feedback: Reviews, surveys, or direct feedback on products and online shopping experiences (Xiao et al., 2019).
•    Current Marketing Strategies: Details on digital marketing, partnerships, and promotions.

Additional data required for consulting work

•    Market Research: Studying digital shopping habits of young adults in Australia, focusing on non-alcoholic beverage sector.
•    Competitor Analysis: Examine brands' digital marketing strategies and online presence.
•    Trends: Current trends in non-alcoholic beverages, particularly among younger consumers.
•    Digital Behaviour: Understanding target audience's online activity, platforms, and shopping habits (Jílková & Králová, 2021).

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STP Recommendations for Bundaberg

Segmentation Approach

Bundaberg needs market segmentation to reach its audience. Given Australia's diverse beverage market, segmentation should be multifaceted:

  • Demographic Segmentation: Age, gender, and income can can be primary factors. With more young adults shopping online, this age group is crucial. Other age groups, especially non-drinkers, shouldn't be ignored.

  • Behavioural Segmentation: Understand consumer purchasing habits, brand loyalty, and consumption frequency (Evans et al., 2023). They drink occasionally or regularly? Purchase during certain seasons or events?

  • Psychographic Segmentation: Study consumer lifestyles, interests, and activities. Health-conscious? Do they like organic or traditional drinks? Do ethical and sustainable production affect them?

  • Geographic Segmentation: Bundaberg is an Australian brand, but it must understand regional preferences and international markets.

Target Segment

Given the digital transformation and young adults' growing online shopping trend, the primary target segment should be:

Young Adults (Ages 18-35): Tech-savvy, influenced by digital marketing, seeking healthier beverage options. They are more adventurous, trying new flavours and limited-edition products.

Secondary segments can include health-conscious consumers and older brand loyalists.

Positioning for Target Segment

For young adults, Bundaberg should be a lifestyle choice, not just a beverage. Proposed positioning strategy:

•    Authenticity and Tradition: Highlight Bundaberg's history and brewing methods. Modern consumers, especially younger ones, value brand authenticity and stories.

•    Health and Wellness: Promote natural ingredients and non-alcoholic beverage health benefits. With the sober-curious movement, you can reach consumers looking for healthier drinks.

•    Innovation and Experimentation: Create new flavours or limited-edition beers for kids. Launch products with this age group's influencers or celebrities.

•    Sustainability: Youth care about the environment. Promote sustainable production, packaging, and distribution.

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Marketing Mix Recommendations for Bundaberg

Product Strategy

•    Core Offerings: Keep ginger beer but add sugar reduction or health benefits.

•    Flavour Innovation: Create seasonal or limited-edition flavours. A tropical fruit summer special or a spice winter special.

•    Sustainability: Eco-friendly packaging or bottle return programmes attract eco-conscious customers.

Promoting Strategy

•    Social Media: Use Instagram, TikTok, and YouTube to engage young adults (Van Cottem & STEILS, 2021). Use Bundaberg to collaborate with influencers on product reviews, unboxings, and recipes.

•    Content Marketing: Write about ginger beer's history, brewing process, and recipes on Bundaberg's website.

•    Email Marketing: Regular newsletters with special offers, flavour announcements, and behind-the-scenes content.

•    Digital Ads: Use Google, Facebook, and Instagram to target segments and promote the product's USPs.

Place Strategy 

•    E-commerce Platform: Increase Bundaberg's direct sales with bundle deals or subscription boxes.
•    Partnerships: For wider distribution, partner with online grocery platforms or food delivery apps. Consider online-only flavours or deals.
•    Virtual Pop-ups: Hold virtual events or sales during holidays or product launches.
•    Physical Presence: Focus on digital, but do not ignore physical presence. Supermarkets, local stores, and niche health or organic stores should carry it.

Pricing Strategy 

•    Value-based Pricing: Determine Bundaberg's consumer value. If they view it as a luxury, health-conscious option, pricing may be higher (Raja et al., 2020).
•    Bundle Offers: Discount bulk purchases or combo packs to boost sales and introduce new flavours.
•    Loyalty Discounts: Offering loyalty discounts or a points system for repeat customers or subscribers leads to exclusive deals.
•    Seasonal Pricing: Offer discounts during holidays or product launches to attract customers.

Marketing Costs Relevant to Bundaberg's Case Study 

Fixed Costs

These costs are constant regardless of production or sales.
•    Digital Infrastructure: Bundaberg website, e-commerce platform, and other digital asset hosting costs.
•    Salaries: The digital marketing team, content creators, graphic designers, and other marketing campaign staff are paid.
•    Software Licenses: Marketing software, CRM, email marketing, and analytics subscriptions (Jílková & Králová, 2021).
•    Rent and Utilities: Bundaberg's marketing and sales offices and stores would have fixed rent and utilities.

Variable Costs

Production and marketing intensity affect these costs.

•    Advertising Spend: Google, Facebook, and Instagram ad costs. Campaign frequency and scale affect this.
•    Promotional Activities: Event, virtual pop-up, and promotional campaign costs vary by scale and frequency (Bates et al., 2023).
•    Production of Marketing Materials: Costs for banners, posters, and digital graphics can vary by campaign.
•    Influencer Partnerships: Bundaberg's promotion fees depend on the influencer's reach and terms.

Marginal Costs

This is the cost of making one more product.

•    Additional Production: The cost of making one more bottle of Bundaberg ginger beer, including raw materials, labour, and other factors.
•    Digital Expansion: The cost of adding a product listing to the e-commerce platform or increasing ad spend (Del Giudice et al., 2021).
Understanding these costs is crucial to Bundaberg's digital marketing improvement. The brand can allocate its budget to maximise reach and impact while maximising profitability by understanding fixed, variable, and marginal costs.

Customer Relationships Recommendations for Bundaberg 

Customer Relationship Management (CRM)

•    Implement a Strong CRM System: Bundaberg should invest in a CRM system that tracks customer data, purchase histories, and customer preferences and behaviours (Setiawati et al., 2019).
•    Personalised Communication: Use CRM data to send customers personalised emails or notifications recommending products based on their purchases or browsing history.
•    Feedback Mechanism: Encourage customers to rate products and their shopping experience (Guerola-Navarro et al., 2021). This improves products and makes customers feel heard.
•    Loyalty Programmes: Give customers points for every purchase to redeem for discounts or exclusive products. This boosts brand loyalty and repeat purchases.
Getting New Customers
•    Digital marketing campaigns: Target younger users on Instagram, TikTok, and YouTube. Promote Bundaberg's authenticity, taste, and health benefits (Purnomo, 2023).
•    Influencer Collaborations: Partner with target-audience-relevant influencers. They can promote Bundaberg to a larger, more engaged audience.
•    Sample and Pop-up Events: Host virtual or physical Bundaberg product sampling events. Free samples or trial packs can attract new customers (Jílková & Králová, 2021).
•    Referral Programmes: Encourage Bundaberg customers to tell friends and family. Reward successful referrals with discounts or freebies (Evans et al., 2023).
•    Engage in Sustainability Initiatives: Youth are more environmentally conscious. Promoting eco-friendly ingredients and packaging can attract eco-conscious customers.

A/B Testing and Multivariate Testing Recommendations for Bundaberg 

A/B Testing

A/B testing, or split testing, compares two versions of a webpage or ad to see which performs better in terms of click-through rate or conversion rate (Azevedo et al., 2020).
•    Website Layout: Testing two homepage layouts of Bundaberg will help determine which one engages users more. One version may highlight the brand's history, while the other highlights new products.
•    Digital Ad Creatives: Try different headlines and images. One ad could highlight Bundaberg's traditional brewing process, while another could highlight its health benefits.
•    Email Campaigns: Send two email designs to subscriber segments to see which has a higher open or click-through rate.
•    Call-to-Action (CTA) Buttons: Test different CTAs like "Shop Now" versus "Discover Our Range" on the website or in ads to see which gets more user actions.
This lets Bundaberg make data-driven decisions. Bundaberg can improve engagement and conversion by knowing which version audiences prefer.

Multivariate Testing

Multivariate testing tests multiple variables simultaneously to find the best combination (Yun et al., 2019). Though more complicated than A/B testing, it can yield more insights.
•    Website Elements: Try different colour schemes, product placements, and CTAs. Does a green "Buy Now" button perform better next to a product image or below the description?
•    Ad Combinations: Try different headlines, visuals, and CTAs to find the best mix.
•    Email Content: See which subject lines, visuals, and body content generate the most engagement.
•    Landing Pages: To boost conversions, test landing page elements like testimonials, product images, and promotional content for specific campaigns.
Multivariate testing provides a holistic view, while A/B testing examines one variable. Bundaberg learns how different elements interact and affect user behaviour.

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Conclusion

Bundaberg is at a critical point in digital evolution. The brand must prioritise the following to strengthen its position and appeal to modern consumers, especially younger ones:

•    Digital Presence Enhancement: Enhance the brand's online presence with a user-friendly website, targeted digital ads, and active engagement on young adult social media platforms.
•    Product Innovation: Keep the classic ginger beer but add new flavours or limited-edition products to meet changing tastes.
•    Customer Engagement: Use a robust CRM system to personalise communication, gather feedback, and build brand loyalty with loyalty rewards.
•    Data-driven decisions: Optimise digital assets with A/B and multivariate testing to maximise engagement and conversion.
Bundaberg should track: to evaluate these strategies.
•    Website Traffic and Engagement Metrics: Analyze website traffic and engagement metrics, including site visitors, bounce rate, and average session duration.
•    Sales Data: Monitor online sales growth, particularly with new products or flavours.
•    Customer Feedback: Regularly gather and analyse customer feedback to gauge satisfaction levels.
•    Digital Ad Performance: Monitor click-through, conversion, and return on ad spend for digital ads.

Bundaberg can successfully transform and engage with current and potential customers in the digital age by addressing these areas and monitoring the metrics.

Statement of Intent 

This report targets Bundaberg senior management, marketing, and digital transformation leaders as strategic decision-makers. These individuals are leading Bundaberg's digital strategy, seeking insights and actionable recommendations to boost online presence and engagement.

Understanding this audience's crucial role in shaping Bundaberg's future, the report was meticulously crafted using these methods:

•    Structured Approach: Clear headings and subheadings make the report easy to navigate and help readers find relevant information.
•    Concise Language: The report presents facts and recommendations without jargon or verbosity to accommodate decision-makers' time constraints.
•    Relevance and Context: Each report section is tailored to Bundaberg's market position, making it actionable for the brand.
•    Data-Driven Insights: The report emphasises the importance of data and the need for A/B testing, multivariate testing, and other empirical methods to make informed decisions.
•    Visual Aids: While not explicitly mentioned in the text, adding charts, graphs, or infographics to the final report would improve readability and provide visual breaks, making the content more digestible.
•    Empathy and Understanding: The report acknowledges Bundaberg's rich history and current market position, ensuring recommendations match the brand's values and long-term vision.
•    Actionable Recommendations: Every section ends with clear, actionable steps to help the audience transition from understanding to implementation.

This report aims to give Bundaberg's decision-makers a practical and insightful roadmap. The methods used bridge strategic consultancy and on-the-ground action, preparing Bundaberg for digital transformation.

References

Azevedo, E. M., Deng, A., Montiel Olea, J. L., Rao, J., & Weyl, E. G. (2020). A/b testing with fat tails. Journal of Political Economy, 128(12), 4614-000.
Bates, S., Reeve, B., & Trevena, H. (2023). A narrative review of online food delivery in Australia: Challenges and opportunities for public health nutrition policy. Public Health Nutrition, 26(1), 262-272.
Bundaberg brewed drinks. (2023). Retrieved from https://www.bundaberg.com/ 
Del Giudice, M., Scuotto, V., Papa, A., Tarba, S. Y., Bresciani, S., & Warkentin, M. (2021). A self‐tuning model for smart manufacturing SMEs: Effects on digital innovation. Journal of Product Innovation Management, 38(1), 68-89.
Evans, R. K., Christiansen, P., Finlay, A., Jones, A., Maden, M., & Boyland, E. (2023). A systematic review and meta‐analysis of the effect of digital game‐based or influencer food and non‐alcoholic beverage marketing on children and adolescents: Exploring hierarchy of effects outcomes. Obesity Reviews, e13630.
Guerola-Navarro, V., Oltra-Badenes, R., Gil-Gomez, H., & Gil-Gomez, J. A. (2021). Research model for measuring the impact of customer relationship management (CRM) on performance indicators. Economic research-ekonomska istraživanja, 34(1), 2669-2691.
Jílková, P., & Králová, P. (2021). Digital consumer behaviour and ecommerce trends during the COVID-19 crisis. International Advances in Economic Research, 27(1), 83-85.
Purnomo, Y. J. (2023). Digital Marketing Strategy to Increase Sales Conversion on E-commerce Platforms. Journal of Contemporary Administration and Management (ADMAN), 1(2), 54-62.
Raja, J. Z., Frandsen, T., Kowalkowski, C., & Jarmatz, M. (2020). Learning to discover value: Value-based pricing and selling capabilities for services and solutions. Journal of Business Research, 114, 142-159.
Setiawati, A. P., Susetyorini Susetyorini, U. E., Rusdiyanto, R., Astanto, D., Ulum, B., Khadijah, S. N., ... & Umanailo, M. C. B. (2019). The Role Of Customer Service Through Customer Relationship Management (CRM) To Increase Customer Loyalty And Good lmage. International Journal of Scientific and Technology Research, 8(10), 2004-2007.
Van Cottem, A., & STEILS, N. (2021). A study of influencer marketing on Instagram, TikTok and YouTube: The effects of parasocial interactions, openness, perceived interactivity, persuasion knowledge and correspondence bias. Unpublished Master’s thesis). Belgium: Louvain School of Management https://dial. uclouvain. be/memoire/ucl/en/object/thesis% 3A31419 (Erişim tarihi: 14.09. 2022).
Xiao, L., Guo, F., Yu, F., & Liu, S. (2019). The effects of online shopping context cues on consumers’ purchase intention for cross-border E-Commerce sustainability. Sustainability, 11(10), 2777.
Yun, Y. H., Li, H. D., Deng, B. C., & Cao, D. S. (2019). An overview of variable selection methods in multivariate analysis of near-infrared spectra. TrAC Trends in Analytical Chemistry, 113, 102-115.

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