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Unit 11 – International Niche Strategies for small to medium enterprises (SME’s)

Adapted: Trueman, J. (2007) A Brand-New Brand, Time Magazine, p.38,
January 22

11.3.1 International niche marketing: Bionade

Bionade is an extremely entrepreneurial organisation and the uniqueness

of the product (organic, low in sugar, bio-friendly carbonated soft drink)
appeals to a broad segment of the market. Bioande’s customers include
schools, fitness centres (sold as an energy drink), restaurants, bars and

clubs (sold as an up-market non-alcoholic alternative), retailers such as
McCafe and Starbucks, family market, teenager and tweenager market

(sold as a hip, trendy lifestyle drink) and bio-friendly consumers (sold on
its organic properties). This is a clever strategy as there is only one product

(with different flavours) and the company do not rely solely on one or two
segments. As such, the brand has gone from strength to strength and is
moving towards becoming a global brand. This is achieved by taking the

existing product into new geographical markets. This is known as market
development (Ansoff, 1957). This concept is highlighted in Figure 11.2.

Figure 11.2: Growth strategies for SME’s

Products

Existing New

Existing

Penetration New product
development

Market/segmen

t

Market development Diversification