Bionade Case Study
Bionade is a natural non-alcoholic carbonated soda drink born out of the dire need of a new drink to hit the German
markets which would not only suit the distinct taste of the health-conscious citizens but also to compete the major
international beer conglomerates as a brand to reckon with.
Faced with a threat of closure, Peter Brewery, a small family run brewery came up with the idea of producing an
organic drink fermented out of the traditional beer fermentation process the family was adept at. Though initially they
received very mellow response to their drink from the major beverage companies and local bars, it was given a brand
makeover and it soon became the cult drink for trendy partygoers.
Bionade relied on a simple model of creating demand by letting the consumers discover them. This low-cost
marketing strategy is backed extensively with viral marketing and word-of-mouth publicity which Bionade evoked
from sponsoring sporting, cultural and kids’ events across the country. Thus, Bionade tried to establish itself in the
minds of the consumers as something that easily fit into their lifestyles without being cumbersome in terms of fat or
alcohol content. Also it was careful to avoid being labeled as just children’s drink via promotions in local bars and
large scale events. This ripple effect helped Bionade to secure distributorship from elite retailers like McCafe, IKEA,
Starbucks, ICE trains and the like. Bionade’s 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. This business model proved hugely successful as Bionade posted a YOY
growth of 300%.
Bionade followed a uniform strategy throughout its globalization ventures across Europe. It maintained its brand
positioning of the ultimate carbonated drink and innovative marketing strategies through Internet and event
sponsorship. They increased their production capacity to meet the growing international demands both in terms of
hiring manpower as well as increasing facilities. By 2006, Bionade was available in 18 different countries in Europe
with a sales volume of 70 million bottles in 2006.
The American beverage market is dominated by soda giants Coke and Pepsi which will offer Bionade stiff
competition once it enters the US market. Other indirect competitors include light alcoholic beverages like American
lagers, nutrition products, such as health foods and dietary supplements that are advertised to provide similar
nutritional value as Bionade, specifically, calcium and magnesium foods and/or supplements.
One of the ideal strategies to enter the American market would be indirect export through some distributor with
commendable knowledge and resources in logistics and distribution channel in the American beverage market.
Another strategy could be strategic alliance with any leading beverage company or a company with sufficient know-
how of the American market with interest in product lines similar to Bionade. It is so suggested because one of the
greatest weaknesses of Bionade is that the fact that it is a privately owned company and thus has limited funds and
limited distribution abilities. Another weakness of the company is the fact that limited advertising has been used. This
has saved the company money, but it has also hurt the company because it is not very well known. Another weakness
of the company is the fact that the product line is not very diverse. All these could be crucial while entering a large
and diverse and utterly competitive market like US. Thus a strategic alliance with a big conglomerate would provide
it not just the financial cushion but also ready-made distribution channels.
The positioning of Bionade in the US should be as a social drink, one that enhances one’s lifestyle while hanging out,
i.e., establishing it as kind of a hip/innovative drink. The health advantages of Bionade should be used as a secondary
benefit of the product but enough to drive home the fact that it is best answer to the health related problems of the
nation. Thus Bionade should establish itself as a unique, healthy alternative to the normal, “boring”, calorie-laden soft
drinks.
Submitted by Pritha Gupta
