For Dr. Clover Only

Create your revised NAB company name and explain its significance

The name of my Non-Alcoholic Beverage (NAB) Company is called Hydrate. Hydrate started as a colorless soft drink with a lemon and lime tastes and with no sugar, unlike many other soft drinks. My drink has a clean taste that focuses on quenching thirst and hydrating the body. Not only does it quench your thirst and hydrate the body but it’s filled with essential vitamins. Hydrate is available in four different flavors and a variety of sizes. Previously, the drink was mostly associated with adults, but with the introduction of 3 new flavors, Hydrate is becoming popular amongst Generation X kids.

Revised company Mission Statement and provide a rationale for its components.

Hydrate is a non-alcoholic all natural, and no sugar added soft drink ideal for individuals in all age groups. The fact that the drink is caffeine free means that individuals can consume it in all ages and with health complications that limit one from consuming caffeine related drinks. Therefore, the drink can be consumed across all ages and is a globally recognized brand offering a unique rich taste with all natural flavors and no sugar, even ideal for the family. The drinks also extend to cover individuals with health problems associated with the presence of caffeine and a lot of sugar that include blood pressure and diabetes. The goal of the company is to grow moderately while increasing the annual profitability but still providing a unique taste that lacks in many soft drinks.

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.

The sale of soft drinks in the United States has been steady unlike many other beverages recording an average of 45 billion dollars annually. The sales of a similar drink; Sprite in the year 2016 increased by 3.7% making it one of the best performing soft drinks in the industry (Soda Industry Statistics, Trends & Analysis, 2018). One of the reasons I chose the soft drink industry is the health factor. Growing up, my life was filled with drinks full of sugar and bad for your body. My beverage takes into consideration individuals refraining from consuming beverages with high caffeine and sugar content. The second reason I chose the drink is the emphasis that currently exists in the family setting in the United States. The family is an important aspect of the economic and social stability of any economy. Previously, the family setting has been weak, which created major implications for the nation. The lack of strong families weakens the social and moral capital, which affects the foreign policy strength of a nation. Under the family, individuals share meals, memories, and happiness, which reinforce the togetherness aspect of the soft drink. The third aspect is the ease of manufacture due to the accessibility of the ingredients.

Choose one (1) strategic position from the course text (pp. 142–143)

Companies that have created superior brands in the market have first created great brands that won the hearts of the consumer and after that focused on other strategic factors. The strategic position the company adopts; first focuses on brand creation for the niche market. Under branding, the company intends to use environmental and user-friendly containers. The labels will be appealing, and the packaging will come in containers that include the regular glass bottles, pet bottles, cans and plastic bottles that range from 250 ml for an individual to 2.25 liters for the entire family. The soft drink maintains its rich, unique natural taste by avoiding artificial ingredients such as sweeteners and concentrates. Coca Cola Company offers reasonable prices depending on the market the product is in, for example, a 330ml can of sprite goes for 0.17 dollars in Egypt compared to the 0.52, 0.68 and 0.89 dollars in Russia, United Kingdom, and the United States respectively.

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.

A strong distribution channel ensures increased visibility of the product in the market. My company will focus on two distribution channels that include direct and indirect channel distribution - the direct channel direct sales team from the manufacturer to the customer. The direct sales team will gain contact with the consumer at the point of sale. My company will take orders from company websites and brand retail stores and deliver directly. Under the indirect channels, the company will adopt the wholesaler/distributor channel. The channel can take three forms which include from manufacturer to retailer to customer, from manufacturer to wholesaler to retailer to customer and from manufacturer to an agent to wholesaler to retailer to the customer (Stevens et al., 2012). My company will adopt the channel from the manufacture to retailer to the customer to avoid longer chains that end up adding extra indirect costs that will later reflect on the overall price of the product.

Three (3) types of risks (including any regulatory risks) that your business faces

Any consumable product is bound by a regulatory standard from the Drug and Food Administration body. Therefore, the regulatory risk, in this case, is with compliance with the given regulatory standards. The Environmental Protection Agency (EPA) will also require proof that the materials the company is using in packaging their products and the manufacturing plants will not contribute to environmental pollution in any aspect. The company also faces the competitive risk from all the existing firms selling similar products and that have already acquired a market share. The other risk is the disclosure risk that requires companies to reveal financial statements and reports to the public that competitors could use against our company.

SWOT analysis using the SWOT matrix worksheet

A SWOT analysis is an internal market analysis that aims at providing important information about the organization’s strengths, weaknesses, opportunities, and threats in an attempt to explore the organization’s competencies, cost position and competitive viability in the market (Fitzen, 2009).

Strengths · Rich, unique natural tastes free from caffeine and excess sugars appropriate for all ages · Flexible packaging in bottles available in different sizes ranging from one individual to a family setting · Its colorless nature makes it an additive in a lot of drinks which includes cocktails	Weaknesses · A new product that will require extensive promotion and effort brand nationally · Competition amongst many other brands that have faithful followers · Failure to create awareness amongst the domestic audience
Opportunities · The steady nature of the beverage company with prospects to increase sales · Technological advancements that offer better tools to manufacture the products as well as others to market these products · Emphasis on the family setting globally which is one of the Global expansions · Introduction of new flavors offering the company a competitive edge	Threats · Presence of other similar products with similar characteristics that include 7UP and Sprite that offers competition · Health consciousness as a large number of individuals are becoming more skeptical about the consumption of soft drinks

References

Fitzen, L. (2009). Marketing Environment. Grin Verlag.

Soda Industry Statistics, Trends & Analysis. (2018, September 21). Retrieved from https://brandongaille.com/31-soda-industry-statistics-trends-analysis/

Stevens, R. E., Loudon, D. L., Ruddick, M. E., Sherwood, P. K., & Wrenn, B. (2012). The marketing research guide. Routledge.