Week 10: Assignment 5: Business Plan – Final

Assignment 1

Bold Energy Drink

Create your revised NAB company name and explain its significance.

The revised non-alcoholic beverage company name is Bold Energy Drink Company. This company offers a wide range of energy drinks with different flavors and intensities. The target consumers for this company are individuals who are seeking to endorse a healthy lifestyle by cutting down their intake of soft drinks such as sodas which have high-calorie content and people who are looking forward to boosting their energy levels. The name of the company denotes the boldness or strength that is associated with the drinks, and this makes the company stand out in the highly competitive market.

Develop your revised company’s Mission Statement and provide a rationale for its components.

The mission statement of the Bold Energy Drink Company is to offer the consumers the energy that they require so that they can work for long hours when working out, the athletes or when a consumer just needs to get through the day and chill by taking a drink that has a fulfilling taste. Many of the consumers globally are turning away from the drinks that have strong tastes and those which have high-calorie content due to the increased need to maintain a healthy lifestyle. As a result of this, people are turning to more satisfying drinks which do not lead to the adding of weight and causing diseases such as obesity. Bold Energy Drink thus aims at meeting the needs of these individuals in their different activities in life.

Describe the trends in the non-alcoholic beverage industry, especially the specific type of beverage category you have chosen. Justify at least three (3) reasons why you have chosen this type of non-alcoholic beverage.

Over the years, the market for the energy drinks has been continuously growing irrespective of the tough economic conditions and the increased health scrutiny. The sales of the energy drinks have been increasing continuously while the sale of soft drinks such as soda is steadily declining. According to PR Newswire, (2015), the energy drink industry is expected to grow at a rate of 5.8% by the year 2021. This can be attributed to the increasing health concerns which are pushing individuals to adopt a healthier lifestyle and make choices that are healthier. There are also an increasing number of athletes in the world, and this will contribute to an increase in the sale of the energy drinks. This is because they have become a more preferred option to the sugary juices and the carbonated drinks and athletes are taking them to boost their energy. Three main reasons why I chose this energy drink is because; there is a gap in the market which allows for new entrants, it offers an alternative to the energy drinks which are difficult to drink and have a medicinal taste and lastly, it has a light flavor than other sport drinks, and this makes it the best alternative.

Choose one (1) strategic position from the course text (pp. 142–143) that you believe is the best strategic position for your company. Explain the approach you will use to implement this strategic position to distinguish your beverage from other non-alcoholic beverages.

The strategic position that I believe is the best position for the company is convenience. In this, I will ensure that the drink is available in all stores where other energy drinks and water are sold so that it can be easy for the consumers to access it as their best alternative. Easy access will greatly aid in ensuring that the consumers can see the product regularly and they can thus easily chose it over the other beverages (Elms, & Low, 2013). The approach that I will use to implement this strategic position so that I can distinguish this beverage from the other non-alcoholic beverage is that I will ensure that adequate marketing is done so that the customers can easily recognize it and that it will be placed in the retail stores near the energy drinks and the bottled water to ensure harnessing of the consumers that are out there looking for the respective options. Having a low-calorie content will act as a substantial competitive advantage for the company.

Provide an overview of your company’s distribution channels. Explain the manner in which your product will reach end users. Provide a rationale for your chosen method.

In the distribution channels, the regional bottling plants will have the role of distributing the product to the retailers in the various locations. The retailers will include restaurants, supermarkets, convenience stores, gyms and also clubs who have a close contact with the consumers. This will greatly aid in ensuring that the company gets a wide scope of customers and an increase in sales which will translate to increase its production activities as well as distribution so that it can enjoy economies of scale in production.

Outline at least three (3) types of risks (including any regulatory risks) that your business faces. Describe your company’s plan to mitigate such risk.

The businesses in operation in various industries usually experience different types of risks. The first type of risks that the business faces is there are many competitors in the market offer different types of energy drinks as well as water brands. The company will thus require to heavily invest in marketing so that it can be in a position to build heavy brand recognition and also capture a wide scope of market demand. The second type of risk that the company is prone to be regulatory requirements especially in the bottling plants and securing their rights. This is very expensive, and it is likely to limit a company’s operations. The company can mitigate this risk by ensuring that it carry out vetting properly before securing the plan locations so that it can be in a position to take advantage of the available opportunities (Reuvid, 2012). The other risk that the company is prone to is developing a good relationship with many retail outlets to sell the product to the consumers. This risk can be mitigated through ensuring that the company develops a good relationship with the various retailers and businesses such as supermarkets and convenience stores and also carry out adequate marketing to raise awareness of the existence of the product.

Develop a SWOT analysis for your NAB company using the SWOT matrix worksheet in the course text (p. 153 | SWOT: Strengths / Weaknesses / Opportunities / Threats)

Strengths 1.The product has a bold packaging 2. The product is unique which makes it to stand out in the market from other competitors such as monster and red bull 3.It’s a cross-category product	Weaknesses 1.Competition from the existing market leaders 2. The regulatory requirements are very expensive to align with 3. High costs involved in the development of the product 4. The product has a higher price as compared to the other drinks in the market.
Opportunities 1.Use of social media in marketing 2. There is a growing market for the energy drinks 3. The opportunity for global expansion 4. The company can make drinks using new flavors to assist in development in the future and meeting the gaps in the market.	Threats 1.Regulatory changes 2. The existence of well-known brands such as Monster and Red Bull among others. 3. Natural disasters such as flood are likely to affect the prices of inputs in the production process.

References

Elms, D. & Low, P. (2013). Global value chains in a changing world. Geneva: World Trade Organization.

PR Newswire. (2015). “Global energy drinks market 2015-2021.” Retrieved from https://www.prnewswire.com/news-releases/global-energy-drinks-market-2015-2021-insights-market-size-share-growth-trends-analysis-and-forecasts-for-the-61-billion-industry-300137637.html

Reuvid, J. (2012). Managing business risk : a practical guide to protecting your business. London: Kogan Page.