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Running head: BUSINESS PLAN

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BUSINESS PLAN

Business Plan

The Functional Contribution to Organizational Success

Horizon Manufacturing Company is a start- up company with a vision and will specialize in all NAB that is natural. We look forward to being the first company to be all natural in the manufacturing of our energy drinks though we understand it is an expensive endeavor, the increasing consciousness among consumers on what they ingest should not be underestimated, and we the Horizon Company never underestimates. The company is also involved in manufacturing other products that are being formulated before they are patented and made public. The name of the business Horizon was inspired by what the name stands for as we looked to differentiate from the other companies by looking forward in production of healthy and all-natural energy drinks. The price point of Vita-my Health Energy will range $2.75-$2.89 for a 10 oz., depending on the location where the product is situated.

Our mission to our customers is to provide a safe and healthy substitute to energy drinks while offering the best quality all natural ingredients at an affordable price without compromising the enhancement of energy.

This mission came up after discovering the health concerns raised by health conscious individual confused by the ingredient used in making the energy drinks. Plus most of the ingredients were manufactured and synthesized (Blacker & Chadwick 2013). Therefore, there exist a market gap and opportunity of meeting this customers demand who are interested in energy drinks that are naturally oriented, and we have made this our mission.

Our mission to our owners is to ensure the company is and remains profitable in a bid to create wealth and enhance sustainable growth. Owners’ interest is simply making a profit in a company, and it is, therefore, an obligation to the business to create wealth and reward the owners for the risk taken to invest their capital in the enterprise. Growth ensures their interest is protected and the company is not likely to fall to grace making the owners loss there capital

Our mission to the employees is to provide a healthy, safe and happy environment that supports the culture of team member excellence and personal nourishment and growth. This is because we understand a happy worker is a valuable asset to our company since he is motivated to perform his or her duties diligently without fail. Teamwork culture ensures the office duties are performed efficiently and effectively thus we will be expecting a better performance.

We understand the company has a role to play by ensuring a peaceful coexistence with the society and ensuring clean surrounding in partaking cleaning campaigns and organizing sports events as a peace campaign strategy.

From our missions, we can clearly say, we see ourselves as a friendly and peaceful company that is eager to conduct its business in an open and trustworthy manner. The products themselves show that we care about our esteemed customers. Therefore, we can proudly say we embrace the client oriented strategies.

Horizon manufacturing is a company with a clear market concept. Having studied the energy drinks industry and realized a gap, the company has a product that perfectly meets the existing need on the market. With weaknesses in the industry relating to the content and use of the existing energy drinks, Vita-my Health is not only a solution offering satisfaction to the customers but a highly profitable product. The strategy is to get to different customer segments and expand into markets far and wide. This is made possible by the flexible pricing which is set to accommodate different market segment. With the market flooded with different energy drinks youths being the major consumer, the focus of the customers is now on the quality. Horizon manufacturing ventures into natural products which are the most preferred. This means Vita-my Health stands a big chance to outdo many products that have existed over time. The product is highly profitable with an increment in profitability of up to 300% in just one year. With different products being produced and distributed by the company, this diversification strategy makes sure that the company is sure of a steady flow of revenue. The company has a flat organizational structure which goes well for decision making and enhances accountability. For the investors, this is a perfect venture for them with promising high returns within the shortest time possible.

Energy drink category has its potential target market for the young adults and college students that have responsibilities or are involved in stressful activities that require much energy to get through. We understand that it is hard for a company to be all things to all people as stated by Iacobacci. Therefore by targeting the energetic youth, it is in our best interest to make it easy for the company to achieve its objectives. However, the brand does not plan to target any gender since we believe the product is not gender oriented but adopts a subculture marketing strategies. The market segment is identified by people of age 15-38 since this age group makes up the largest number of athletes, gym devotee, college students, and the working class personnel with the majority being millennials.

There is a trend where the energy drink is supposed to boost or enhance athletic performance and recovery. Shortly, we expect to see and experience more energy drink that contains branched- chain amino acids, protein, nacetyl-tyrosine, beetroot extract, and creatine (Bailey, 2014). There also exist other selling points like no sugar, no calories, no carbs and no caffeine plus coffee flavors and non-carbonated flavors.

However, this industry continues to face lots of condemnation from health lobbyists but however continue to defy their outcry because of the capacity that the energy drinks provide the consumer with a quick and effective energy boost which excites most of the consumers. Moreover, they benefit from having huge investments in advertising and high profile marketing initiatives to create an exciting and wild image.

Before determining and arriving at our strategic position, the company observed the competitor’s product positioning. This would really help us in our positioning of our new product. Therefore we understood that the fundamental basis of the competition in the energy drink segment is differentiation making us settle for the generic differentiation strategy (Chowdhury, 2011). To determine feasibility of this idea, we made use of competitor reports and conducted online surveys among the target market.

Vita-my Health Energy drink anticipates facing stiff competition from these largest market players. However, the brand plans to differentiate itself by branding itself as the healthy alternative as it shows its interest in their health concerns of the ingredient used in making energy drinks by labeling them in the cans. Its marketing strategy is also vital in tapping customers and maintaining them. Plus, the brand could opt to use a niche marketing strategy to try get a market share which is monopolized by the top three firms.

References

Beverage Industry | Trends, Formulations, Technology & Products. (n.d.). Retrieved from http://www.bevindustry.com/

Blacker, S. M., & Chadwick, R. G. (2013). The erosive potential of smoothies. Vital, 10(3), 30-35. doi:10.1038/vital1684

Bailey, S. (2014, November 20). The Role of Branding and Advertising in the Soft Drink Industry. Retrieved February 14, 2017, from market realist: http://marketrealist.com/2014/11/role-branding-advertising-soft-drink-industry/

Chowdhury, V. (2011, April 15). Advertisements: Advantages and Disadvantages of advertising . Retrieved February 14, 2017, from india study channel: http://www.indiastudychannel.com/resources/139778-Advertisements-advantages-and-disadvantages-of-advertising.aspx