Bionade Gmbh Marketing Plan

1. Introduction

2. Bionade

Bionade GmbH was founded in 1996 by Dieter Leipold. Company is based in Ostheim, Germany, situated in the Bavarian section in the Biosphere Reserve”Rhön”. The company was founded because of the declining beer consumption, which threatened the long-term survival of the family brewery. Dieter Leipold thought the development of an organic, non-alcoholic drink for kids would be the answer to his future problems. After eight years and all €1.5 million of the family's money the perfect BIONADE recipe was completed. First BIONADE drink was introduced in 1995- BIONADE Lychee. In 1996 BIONADE Elderberry joined the range. In 1999 to BIONADE Lychee and Elderberry third variety was added- BIONADE Herbs. Seven years later BIONADE introduced new flavor-BIONADE Ginger-Orange enters the market. The last joined (2009) BIONADE Quince the BIONADE product range.

BIONADE is produced in an organic way from natural raw materials and without any chemical additives. BIONADE formula determines a way to ferment a nonalcoholic drink by converting the sugar that normally becomes alcohol into nonalcoholic gluconic acid. The acid strengthened the taste of sugar which means that BIONADE only needed a fraction of the sugar found in a normal soft drink. Lower sugar content leads to fewer calories.

Nowadays kids are no longer central to Bionade's business plan, having been replaced by German hipsters. However BIONADE does not target any particular group, it is geared towards anybody, ranging from children to adults and the elderly.

2.1 Domestic market

First it was distributed in fitness clubs and health-food stores throughout Bavaria. Next it was distributed in bars and clubs in Hamburg. After its success in Hamburg, BIONADE was distributed through bars and pubs in several cities as: Frankfurt, Cologne, Munich, Stuttgart, and Würzburg. In 2004 BIONADE hit supermarkets shelves. Nowadays BIONADE distribution channel consists of Health food stores, LEH, beverage wholesale and retail, drug stores, restaurants, hotels, community catering (schools, authorities and company cafeterias), beverage vending machines.

In early years the company could not afford advertising on television or in the print media. Company used Word-of-mouth marketing. In 1999 Wolfgang Blum the marketing expert devised a new marketing strategy for Bionade. He repositioned the brand, moving it away from being a “sensible mineralized drink” and consistently towards being the modern soft drink for the LOHAS (Lifestyle of Health and Sustainability) generation. After makeover BIONADE was re-introduced in appropriate, fashionable clubs in Hamburg which were often frequented by Marketing and Advertisement people and city beaches. From there, the delicately tart and fruity thirst-quenching drink moves into other cafés, clubs, and bars in