Business Plan

About the beverage industry, the main risk which is associated with it at the entry-level is usually a monopolistic competition. This is because the industry is so heavily dominated by a team of corporations which makes the new company or companies have a very little chance of making it. Secondly, there is a risk of saturation on familiar products which makes it difficult for the consumers to differentiate a given company’s product over those of the rivalry company. Thirdly, there is a case of health concerns more especially when it comes to the provision of the beverages kind of products. For instance, it has not been properly handled specifically in a hygienic environment; it may end up being a causative agent of negative health issues on the side of the customers. If such an instance happens, the public image of the company will be put to negative which will end up hurting the company negative in terms of finance, a situation where they can’t recover.

SWOT Analysis

Strength

a) Matunda Fresh Company will specifically deal with unique products which aren’t provided by any other company.

b) The cost of the Matunda Fresh Juice Company products will be relatively cheap hence taking care of the low-income customers.

c) The quality of the products will be very high and effective for human consumption.

d) The delivery of the products to the customers will be faster and efficient.

e) Only expert and professional workers will be recruited in various departments within the organization.

Opportunities

a) There will be continuous innovations besides the development of new products.

b) More expansion in terms of coverage as well as market research.

c) The entering of new demographics as well as a marketing research.

d) There is also an increase in demand for non-alcoholic beverages from all the ages.

Weaknesses

a) There are high risks associated with the Matunda Fresh Juice Company since it's a new beginning company.

b) The distribution channel of the company will also be of a great challenge because it's a newly starting company.

c) The future cost of the company is difficult to be estimated.

d) The product availability, as well as the number of works of the company, will be minimal.

Threats

a) Similarity or saturation of products.

b) The reduction in demand for the products.

c) There is also a threat low return on investment.

d) The threat of a shortage of very important supplies.

3 e) Increase in the cost of suppliers.

Competition

4 Competition in the Market

There are already many established enterprises offering non-alcoholic beverages in the markets. Some of the large companies like Coca-cola and Pepsi have also ventured into the business of fresh juice. Other formidable competitors in the market include; Picana, Tropical fruit, and Gatorade sports drink. There are also numerous suppliers of tea and coffee beverages in the market such as Starbucks and Dunkin's. However, very few of the companies present in the market produce their products with zero carbonation and zero chemicals. This provides a perfect opportunity for Matunda to capitalize on. The society is now more than ever, very interested in organic products that are not processed using chemicals, (Heyman& Abrams 2017).

Health has become a major concern in North America due to the increasing cases of lifestyle-related illnesses. Much of the illnesses are said to emanate from the excessive consumption of processed food products. As society looks for options to migrate from processed foods, Matunda Fresh Juice Company offers a way out through its fresh fruit juices. To gain roots in the competitive markets, Matunda will introduce a range of fresh fruit juices that are not processed or carbonated. This will be a good way of horizontally differentiating the products to gain a competitive advantage, (McDONALD, 2016).

The company will also engage in marketing campaigns to promote awareness of the fresh fruit products in the market. The company intends to provide customers with an affordable quality product that will improve their welfare. Products delivered by the company will be of the highest quality and in compliance with FDA standards. The company intends to partner with other producers of fresh fruit such as Luba. Pricing of the products will be strategically designed to increase the competitive advantage, (West, et al. 2015). 4 Also, the company will use unique packages to facilitate easy differentiation of products.

To increase competitive advantage and gain a good grip on the market share, Matunda will aggressively engage in advertisements and promotions. To facilitate product differentiation and enhance the identification of viable marketing vehicles, the company has formulated the five F's strategy: Function, finances, freedom, feeling, and future, as follows.

Functions: 4 The major goal of the company is to high-quality fresh fruit juices that are 100% organic. Bettering the customers' 4 health is also a primary goal for the company. The fresh fruit juice produced by Matunda will serve as a dietary supplement to boost health.

Finances: "Value for what it’s worth." 4 The pricing policy of the company will be based on the consumer's interests. Different volumes of juice will be packaged and offered to customers at different prices to ensure that persons of all economic classes can afford the juice.

Freedom: 4 “You need it, we’ve got it.” The company’s fresh fruit juice products will be sold to our customers for 24 hours each day. Matunda will set up shop in various restaurants and cafes to enable our customers to access our products at ease. The company will also provide its products in stores across various towns to allow the freedom to choose.

Feeling: "We value our customers." 4 All company staff will receive training in effective customer relations. This will ensure that our customers are served well and accorded the respect they deserve.

Future: 4 Matunda Fresh Juice Company intends to establish customers’ loyalty clubs which will be perfect for fostering good customer relations as we progress to the future.

Competitive Strategy

3 The market strategy that Matunda Fresh Juice Company will be utilizing is the personal connection with the company’s target audience which the company’s major competitors can no longer achieve. This strategy will specifically help the company in building loyal customer grounds besides helping in establishing a sustainable product line which will transform the Company into the future. Normally, the bigger brand beverages are utilizing very expensive marketing tools; Matunda will just make its customers be its marketing tool via a word of mouth. It's through a single sale of a quality product that one customer will tell another customer and the sequence continues until it becomes viral even to the internet. It’s with a strong belief that establishing as a company which is invested in all the aspects of consumer health requirements will generally give the company a competitive edge. It's important to acknowledge also that with the transitioning of the world into a technological world, the individual connection has been lost with brand loyalty also becoming unworthy. However, finding the latest product at the best price will make the customer be hooked more to the product, hence embracing his or her loyalty to the product. Through this, the personal connection can then be utilized in enhancing brand loyalty.

Restricted Target Market

The Matunda Fresh Juice Company target market is more specifically going to young adults, teenagers, as well as parents who have young children. This audience is more relevant to the products of the company because the locations where Matunda products are emanating from having got high rates of obesity that is in North America more especially in the juveniles. Therefore, for this reason, a positive impact will be derived in the area if the juvenile is targeted instead of the adults. Also since the juveniles are the future generation of our great nation, changing their taste besides enhancing their health life will greatly help in creating an active generation for future leadership and governance.

Target Market

4 Consumption for organic products is constantly rising as people learn more on the benefits of carbonated non-alcoholic juice. Matunda Fresh Juice Company intends to capitalize on the increasing demand in the markets. The vast population of people in North America will be the primary market for the company. The company will provide its fresh juice products to smaller market segments in the startup months. However, the company will gradually enter the larger market segments. The company will sell its products to both small scale customers and large-scale customers.

There are numerous fruit vendors already dealing in fresh juice products. The vendors will serve as a ready market for the company's fresh juice products. Also, the majority of households consume fresh fruit daily and the company intends to supply the fresh fruit juice to the small-scale household consumers. The fresh juice products are designed to suit people of all ages, (Heyman& Abrams 2017). Fruit products have always been perfect for promoting health. In North America, the largest proportion of the population is aged between the age brackets of 19 years to 45 years. The company will focus much on attracting customers from this category of people.

Providing the different type of fruits is favorable to both the male and female gender. However, some fruit products are more attractive to one gender and less attractive to the other gender. Matunda will provide a range of products designed to capture the tastes and preferences of both male and female gender in the markets. The company will sell to all customers in the market regardless of education level. Also, the pricing policy adopted for the fresh juice products will be one that suits the customer's income and meets the company's profit margins desired.

Marketing Vehicles

4 The success of any brand is very much dependent on the level of marketing done. There are various channels which may be used as vehicles to facilitate advertisements and promotion of a brand in the market. Matunda will mainly use the media to advertise its fresh fruit products. In recent days, digital platforms have gained so much influence on marketing strategies, (Perreault, 2018). Therefore, the company will focus on both digital and print media platforms.

Many households have a TV set making this an easy vehicle to reach a multitude of people at one particular time. Matunda Fresh Juice Company will pay for commercials in five of the most popular TV stations as a strategy to increase brand awareness. The company will also pay to have its adverts carried on popular magazines especially those covering nutrition topics. Social media is widely used by people across the world, (Chaffey, D., & Smith, 2017). Matunda will advertise its products on Facebook, Instagram and Twitter to extend the volume of people reached.

Sponsoring events where a multitude of people has gathered is also a strategic way of advertising and promoting a brand. Matunda Fresh Juice Company will specifically sponsor one event in each month. T-shirts and caps branded with the company logo and name will be distributed for free at events. This will be very crucial in reaching a larger base of people and increasing brand awareness, (West, et al. 2015). 4 With all these marketing vehicles effectively used, Matunda is sure of an increase in its customer base and total sales for of the fresh juice products.

3 Management and Organizational Plan

Management Structure and Style of Justification

Management Organization

1 Abraham (2014) depicts that a good management plan should be made up of key members of the organization like employees, members of the board of management and the management style should be taken into consideration.

Key Employees

1 J.N, Bob, Clark, and Jay are core employees of Matunda Fresh Juice Company. J.N refers to the ex-CEO of the company who helped the company record a profit percentage of 28 % in the year 2010. Clark is the ex-HR manager. Jay is the ex-manager of ARN Inc, an organization concerned with the purchase and supply of various goods. The combinations of these members would aid the transformation of the company into something new, firmly competitive in the industry.

Members of the Board of Management:

James is the chairman of the board and Kelly is the assistant chairperson. The primary duties of the advisors will be overseeing the well-being of the organization. It will be extended to offering guidance to the members and who are working within the low and high levels.

Management Style

1 The flow chart below denotes a management strategy for Matunda Fresh Juice Company.

As depicted from the chart, GM will be in charge of the organization. The HR and finance secretary will represent the middles level. Research development officers, operations officer, and product marketing officers remain at the bottom-most level of management style.

Operational Plans Role of Operations Plan in Matunda

The role of operational plans towards the company is handling the productivity systems of Matunda organization (Beach, 2017). The plans allow identification of resources as well as system productivity well designed to deal with the manufacturing of products. Operations plan requires the utilization of a clear idea regarding the production design as well as the deliverance of company objectives. Operational management supply ranges from operational levels and strategic levels. The operational process if a company entails several processes which need to be executed systematically. Operational procedures of given firms comprise of several distinctive features (Beach, 2017). Operational plans of Matunda beverages operational plan include cost of efficiencies, addressing information problems and competitive advantage.

Key Aspects of Operations

Establishments of modern blending plant will be essential since it will allow the company to produce more and quality bottled beverages free of any possible health risk upon the consumers. High chances are there that quality will be maintained throughout the entire process since every task executed will be computerized.

Cost and Time Efficiencies

1 Non-alcoholic beverage companies usually possess the exemption of time and cost inefficiencies. Keeping the fact that the company is anticipating to launch three more products, whose prices will be different is a clear indication that consumers belonging to different salary brackets will be in a better position to afford the products (Bernhardt, 2017). This will ensure that all consumers remain inclusive of the company products, regardless of their income bracket. This will probably ensure that company sales are high. Increased sales directly translate to increased revenue, allowing the company to manage better its production for maximum income.

Competitive Advantage

1 Matunda Fresh Juice Company has developed several competitive strategies which will enhance its competitive advantage among the non-alcoholic companies within the same industry. Some of the procedure to be employed includes the utilization of excellent advertisements approaches, together with products branding through print ads. Efficient distribution systems will be utilized in ensuring that there is an efficient distribution system. This will produce a wide range of products manufactured. Packaging of the products should be in a manner that the cans and container’s used are harmless to the environment (Beach, 2017).

Problems Addressed

1 Even though the company is planning to launch additional products, the organization has tried hard and discussed some of the existing issues that were initially identified. For instance, the current capital was enough to sustain all the expected company tasks. The solution to obtaining enough capital arrived at the moment the external investors agreed to introduce additional funding. Transportation of the products from manufacturers to retailers was an issue but was solved through the hiring of more trucks on a contract basis, a move that ensured enough products reached the retailers (West, Ford, & Ibrahim, 2015).

The Rationale for Competitive Advantage

Matunda Fresh Juice Company’s significant competitive advantage is the use of an alternative product distribution channel. Alternative strategies include the use of Direct Store Delivery, utilization of the third-party distribution network as well as the use of customer warehouse. Direct store delivery, for example, lets the company reach the maximum number of customers at any given time. The method also aids frequent restocking of the sensitive products in the market. The technique operates free of the startup costs because, therefore, initiating it is straightforward.

How My Research Contributes To the Company

1 The marketing team of the company, as part of their study regarding the developmental activities, will venture into extensive online research; with efforts of obtaining enough facts and figures as far as the competitors’ behaviors are concerned. 1 Complete information collected will enhance the management when it comes to the identification of the most appropriate actions to be taken (West, Ford, & Ibrahim, 2015).

Technology Plan

1 Technology requirements of any given company comprise of hardware and software devices, interface needs as well as telecommunications. Regarding the activities that Matunda is engaged in, there are no significant reasons as to why the company should adopt complicated systems. Technology adoption will be fir accomplishing routine and straightforward tasks like tax and revenue compilation and compilation and evaluation of the customer's list.

The production plant will be installed with a computerized machine. The role of the device will be monitoring the volume of the beverages produced and packaged and the one remaining (Maxworthy et al., 2018). Technology will be visible on the company website. The website will be responsible for outlining important issues ongoing within the company. The website will also provide enough information for new customers with assistance from 24/7 customer care assistance. Telecommunication perspective will entail the purchase of communication gadgets like mobile phones (Overbay, Mollette& Vasu, 2018). Matunda Company will outsource personal needs.

The Rationale for Outsourcing Personnel Needs A Section

1 The primary reason behind the outsourcing of personal needs is to enable the company to share potential risks, thus minimizing both recruitment and operational costs. Risk analysis and management is part of the most important aspects which dictates campaign outcome; there is a need for taking good care upon it. The company will attain this through the hiring of external experienced risk managers (Maxworthy et al., 2018). The hired members will play a significant role in ensuring the right decisions are made regarding the system to be utilized by the organization in order tracking and inventory section. The outsourcing of personal needs is expected to cut the costs that the company incurs. With the decrease in the overall company costs, Matunda will be in a better position of pricing its products to accommodate customers from all salary products.

Matunda Fresh Juice Company Distribution Channel

Matunda Fresh Juice Company distribution channels will consist of buying of ingredients as well as supplies online. The production will be done on the rented premises of the company. The delivery will be carried out by the use of the three company vehicles which have already been purchased. Afterward, Matunda Company will move to another location and it will start buying as well as distributing in bulky before expanding its business nationally and later internationally (McKenzie, 2015).

3 Ethics and Social Responsibility Plan

Matunda Fresh Juice Company has a plan of setting an exemplary character to the community through working with the welfare system to provide the less fortunate in society with healthier options. The company as well as has a plan of working with the state agencies for the purpose of coming up with a program which will be like a rescue to the jobless as well as homeless to earn a living as well as work skills by them being allowed to work for Matunda on a contract basis which will be temporary. It’s assumed that upon receiving the necessary skills from the program, this group of people will have an upper hand of securing a permanent job. Apart from this program, Matunda is also planning to come up with a school program which will particularly help in giving the necessary knowledge to the juveniles concerning healthier choices besides establishing a scholarship program for the students who have specifically taken the initiatives of creating better living styles for them or the society (McKenzie, 2015).

3 Environment Impact Assessment

Because Matunda isn't just about being healthy, but also to be environmentally friendly, the company management intends to make use of technology during the production stage to lower the rate of emission as possible. 3 The company is in a move to embrace the utilization of delivery services which specifically values the environmental protection as much as possible so that to ensure that the products of the company are channeled in an environmental friendly format even when they are being passed through the company’s distribution channels. The environmental agencies will be our key partners whom we will be working with to ensure that all the company's undertakings are carried out within the law. The communities surrounding the company and those entirely in the North America where the company is based, who make an effort to create a friendly environment will also be rewarded by the company's program which is being developed (Ward, 2016).

3 Health Issues and Claims

As far as the company is a concern, making sure that all the ingredients, as well as the bottling process, always meet the standard requirements is very necessary. This is because the raw materials being used in the process if not carefully handled might cause very serious health issues to our esteemed consumers. According to the company program, it will be working closely with FDA to ensure that the company’s growing products doesn’t any negative impacts to the community as well as the consumers (McKeever, 2016).

Matunda Fresh Juice Company’s Financial Projections

Matunda Fresh Juice Company invested $30,000 of its capital. It took an SBA loan of $600,000 together with $130,000 from an investor. According to the company's financial projections, this starting capital will fully cover its projected financial requirements for the time being. By utilizing these figures together with further research, it is anticipated that for the first year in business, the company will make an approximate total sales of $132,000 with a 2% revenue increase in each quarter of the initial five years in business. It’s also estimated that a breakeven point of $153,054 will be attained by the second quarter of the 3rd year with mean sales amounting to $984,675. The net profit for the first three years in business is approximated at $432,000 for the first year, $612,450 for the second year, and $1,080,302 for the third year. With the already acquainted understanding of the competitive market, the Matunda Fresh Juice Company has established a very detailed financial scheme for the initial three years. This is specifically meant to ensure that there is sustainability in the expansion level of the company (Chambers, & Humble, 2017).

Return on Investment

According to the company's plan, there will be a strong move in introducing new products as well as developments within the company. For this reason, the anticipated return on investment indicates that the % doubling after the 1st year and staying in the range of 40 percent to 45 percent for a period of the next four years. Since the Matunda had new products in the market, it’s approximated that the percentage will increase. Also with the strategic plan of the company which the company will adopt, the error margin is anticipated to remain below 8%. With the potential risk, a start-up company takes on Matunda is much confident that the investment in this company will not have the high risk which is usually applied while investing in the beverage industry (Lynch, 2018).

Milestones · 2017 – launching the brand · February 2018 – Achieving the investors · June 2018 – partnering with the state assistance programs · February 2019 – breaking even · June 2019 – starting meeting with Coca-Cola on marketing as well as market collaboration strategy · September 2019 – the initial beginning of legal paperwork to partner with Coca-Cola · May 2020 – expansion of the target market · August 2020 – going national

Exit Plan

In the situation whereby this proposed business plan doesn’t develop as estimated, Matunda Fresh Juice Company will hold a negotiation with Coca – Cola who the company is anticipating to collaborate with to find the company doing with the financial setbacks. The company has already initiated a plan of offering the company's stock investments to the public after the fourth year of business operations with an opinion of offering stock earlier if it’s necessary. The other strategy which the company will intend to execute before the company dissolving will be to be purchased out by another firm that is within the beverage industry and which have a close correlation with Coca – Cola Company. With the close relationship, they will be at the upper hand to acquire the company (Chambers, & Humble, 2017).

It must be stated clearly that the company will have to monitor the business state for the first four years with a mutual understanding that the company numbers will have to shift up and down during this period. Executing the problem-solving methods which were established to maintain the positive cash flow of the company will be necessary since they established a permanent market position. If for instance Matunda Fresh Juice Company increases as well as cash flow continues to reduce, and maybe the situation is the same from the previous times, Matunda will opt to execute liquidating itself to minimize the financial uncertainties of the company to the investors as well as to the owners. This will start by selling the remaining products as well as all the company's assets. And whatever the debt of the company which remains, a payment plan will be created to compensate the creditors. This payment plan that is created must satisfy must have to satisfy all the creditors without causing any financial strain with the company owners (Burns, & Dewhurst, 2016).

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Citations (5/5)

1. 1 Another student's paper

2. 2 Another student's paper

3. 3 Another student's paper

4. 4 Another student's paper

5. 5 https://www.woolworthsgroup.com.au/icms_docs/183396_2010_AGM_Chairmans_Address.pdf

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