Term Paper: Exporting a Ready-To-Drink Cold Coffee

Pages: 10 (3300 words)  ·  Bibliography Sources: 1+  ·  Level: College Senior  ·  Topic: Business - Advertising  ·  Buy This Paper


[. . .] Exporting to Australia also helps with reducing the problem of rivalry, since Starbucks is not focused on the Australian market and, while Pepsi and Coca Cola operate in the Australian market, they also operate in almost every other country in the world. They are less likely to see Elixa's entry into Australia as a major threat and so also less likely to take action to prevent Elixa's successful entry. Elixa can then develop a marketing campaign and slowly begin to enter the American market, while the sales in the Australian market help it remain competitive as a whole.

Description of the Product

The product is an off-the-shelf cold coffee drink. It will be available in four flavors and come in one 500 mL size. The product will be marketed as an alternative to hot coffee in summer and an alternative to carbonated drinks.

Target Market Characteristics

Target market characteristics can be divided into demographics, psychographics, behavioristics and geographics.


Age range: focus on the 18 to 40 age bracket.

Sex: product targeted to males and females, though with a bias toward the female market.

Family: single, newly married or with children.

Income: focus on mid to high earners.

Occupation: focus on professionals and white collars employees, though also extends to students and young workers.

Education: bias for college educated.


Social class: focus on lower middle, upper middle and lower upper.

Lifestyle: young, busy, relaxed, single, trendy, sophisticated.

Personality: ambitious, part of a lifestyle set, achievers, socializers.

Values: focus on style, image and current trends.


Purchase occasion: purchased regularly as an addition to a lifestyle, as a means of relaxing and as a drink to enjoy in place of other carbonated soft drinks and in place of hot coffee products.

Benefits sought: convenience, enjoyment, relaxation, style.

User status: bias towards coffee drinkers.

Attitude towards product: positive and enthusiastic, seeing Elixa as an addition to a lifestyle.


All regions across Australia, but with a focus on the major cities and on coastal towns.

Marketing Changes Required

The marketing changes required relate to labelling, packaging and language.

Firstly, the labelling and packaging of the product needs to satisfy Australian requirements for food products. This will involve registering the product and gaining approval based on Australian food guidelines and providing the labelling Australian guidelines require. The packaging will also need to be suitable for transport.

Secondly, the language needs to be in Australian English instead of American English, with both spelling and wording needing to be checked to ensure it is correct Australian English. This also relates to the advertising campaigns for the product.

Cultural Issues or Barriers

Australia has many cultural similarities to America. This includes language, religion, beliefs and institutions. Australia can be described as an Americanized culture, sharing many similarities with America and generally following American trends. This is enhanced by the American movies, music, television programs and many American franchises that operate in Australia. This means that there are fewer cultural barriers than there would be with many other export countries. However, there are some cultural differences that need to be considered.

Firstly, Australia is a multicultural nation. As the Australian Department of Foreign Affairs and Trade reports, "Australia is a nation built by people from many different backgrounds. Cultural diversity has become a touchstone of its national identity, and one of its most important strengths amid the challenges of a rapidly changing world." It is also reported that, "Australians come from all around the world. About 23 per cent were born in another country and just over a quarter of the population have at least one parent who was born overseas. People from more than 140 countries have chosen to become Australian citizens" (Department of Foreign Affairs and Trade). Of this 23% born overseas, around a quarter are from Asia, a quarter from Britain, a quarter from Europe and the remaining quarter from the Middle East, North America and Africa. In developing the marketing campaigns this diversity needs to be taken into account to ensure the ad campaigns reflect the diverse society while not insulting any component of the Australian society. It should also be noted that Australia is a firm believer in racial tolerance, believing in the equal rights of all Australians regardless of race or color. It is essential that the marketing campaigns developed support these Australian beliefs and do not suggest in any way the superiority of one race over another. It is also important that the advertisements represent the diverse population that is Australia.

Another issue of significance in Australia is reconciliation with the population's aboriginal members. As the Australian Department of Foreign Affairs and Trade says, "The Australian Government is committed to the reconciliation process to improve understanding between Indigenous Australians and the wider community as an integral part of its commitment to a fairer society." It is also reported that there is often an error in the perceptions of the International community in regards to the Aboriginal population,

"International perceptions of Australia's Indigenous peoples often focus on remote or nomadic communities, perpetuating narrow and often stereotyped views of contemporary Aboriginal and Torres Strait Islander lifestyles and issues. The reality is that Indigenous peoples live in every State and Territory of Australia, and in highly urbanised environments as well as relatively remote rural areas. They are making their mark in many fields, including academia, literature, sport, the arts, business and the professions" (Australian Department of Foreign Affairs and Trade).

The marketing and advertising programs developed need to ensure they do not perpetuate these stereotypes. If Aboriginals are a part of advertisements at all, they need to be represented in a realistic way.

Finally, while the Australian culture is Americanized, like all cultures, the concept of ethnocentricity still applies. As Ball & McCulloch (259) say,

"people who are familiar with only one cultural pattern may believe that they have an awareness of cultural differences elsewhere, when in reality they do not... They are probably also oblivious to the fact that many societies consider their culture superior to all others and that their attempts to introduce the 'German way' or the 'American way' may be met with stubborn resistance."

The marketing and advertising efforts need to ensure that they meet the needs of the Australian culture and do not obviously reject the 'Australian way' and try to put the 'American way' in its place.

Product Positioning

The product will be positioned as a summer alternative to the hot coffee product. The hot coffee product has the image associated with it that it helps you get through your day. Having a cappuccino with friends or relaxing with a strong coffee are ingrained images that Elixa does not have to create. Elixa will uses these ingrained images and focus on providing an alternative in the hot summer months, when a hot coffee is not a suitable option.

The position then will focus on the product as a lifestyle addition. This is particularly aimed at the middle-class, young, professional market that are interested in their appearance and in enhancing their lifestyle. To reach this market Elixa will be positioned as a convenient means of enjoying the pleasure associated with coffee drinks.

Pricing and Exchange Rate Issues

One American dollar equals around two Australian dollars, creating some exchange rate issues. The product would have to sell for twice the American price to achieve the same income. The nature of the product and its unique place in the off-the-shelf drink market does mean it can be priced higher than other alternatives such as Coca Cola and Pepsi. This is based on Elixa as a coffee product and an alternative to hot coffee. Hot coffees and cappuccinos sell for a significantly higher price than carbonated drinks, so Elixa can be priced between the two.

The majority of the value is added to the product by the advertising and brand building associated with the product, rather than by the manufacturing process. This means the wider the market the product can reach, the more cost-savings can be achieved. This makes the exchange rate issues worthwhile, since Elixa is in a position to dominate the Australian market.

Promotional Plan

The promotional plan will focus on the Target Market of middle-class and higher coffee drinkers and young professionals. The message will be based on presenting the product as a lifestyle enhancing product and specifically as an alternative to coffee in summer.

The promotional plan will involve placing advertisements in magazines that reach these target markets, such as young women's magazines like Cosmopolitan. The promotional plan will also involve billboards and television advertisements.

The advertisements will focus on the social and lifestyle issues, such as showing a group of young people sitting drinking Elixa at the beach. This presents the summer image and the social image. It also implies a comparison between sitting with friends at a cafe having a coffee and sitting around informally with friends. The cafe scene is one that has meaning for… [END OF PREVIEW]

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