Assignment 2: Marketing Plan

Business Plan

· Company Description

The company’s name is King Fresh Beverages.

The reason for the name is that king is a representation of many values and characteristics that can only have on the description. A king takes control in various situations and is always the leader. Customers love fresh drinks. King Fresh is therefore expected to the market and competes fairly with other companies in the sector.

The company’s mission is to take care of your health with every sweet freshness. The reason for the mission is that King Fresh drinks focuses on a non-alcoholic beverage and to brew its tea naturally using natural green tea leaves that are rich in vitamins and other nutrients. We are also focusing on the quality of the drinks so that they do not have components that are harmful to the health of our customers. Every human is susceptible when it comes to health matters; they will consume food and drinks that are beneficial rather than harmful (Gandee, 2014).

SWOT Analysis for King Fresh Beverages.

· Trends in the non- alcoholic beverages chosen.

Iced tea has become common in every American livelihood. According to a study done by S&D Coffee & Tea’s, 85% of the people who take tea prefer iced tea. A variety of flavoured tea is also preferred by most of the consumers depending on their preferences. Global consumption of iced tea increased in 2006 which was as an impact of the increase in soft drink consumption. In the iced tea market, two segments include the black iced tea and the green iced tea. The black iced tea has a more significant market segmentation compared with the green iced tea. However, the green tea market is continuously increasing due to the health benefits (Martin, 2018).

The product is favoured by the current characteristics of the target market by factors such as population growth, increased income and also increased use of convenient foods and drinks. Tea is also the most consumed beverage after water worldwide. This means that most people prefer tea over other sweetened beverages such as coffee, soya or cocoa. People prefer iced tea as it is ready to drink the soft drink that has less sugar, fewer carbohydrates and fewer chemicals compared to other beverages (Gandee, 2014).

I also chose tea because it can be blended with other ingredients to come up with a more nutritious drink. These ingredients may include peppermint, mint and water mint. This not only provides health benefits such as the opening of the circulation system but they also have nutrients such as potassium and magnesium which are necessary for the functioning of the body. It also helps as an anti-oxidant, weight loss and even prevents cancer. In Japan, studies show that most of the population is healthy and light-weight due to consumption of green tea (Staff, 2015).

The iced tea is also ready to drink, and one does not have to wait for an order. This means that the traditional tea bags are becoming more uncommon. People would be more willing to purchase a drink that takes less effort to prepare for a drink that you will have to use your time and resources to make.

· The strategic position of the company

A strategic position of a company involves the strategic position of that particular company relative to other companies in the industry. A strategic position defines the position of the organization and shows what you have that others don’t. The strategic position of King Fresh Beverages is its brand strategy (Gandee, 2014).

Brand strategy comes with coming with a different and strong brand for the product. A strategic position can be achieved by aligning the brand with the value proposition of the company. It can also be obtained by concentrating on the aspects that our competitors do not have. Our company will achieve the brand strategy by effectively communicating the brand to the target population. This will enable our customers to learn the benefits that come with consuming our products. We will also ensure the quality of the product and also the customer service provided (Rhonda, 2000).

· Distribution channels.

A distribution channel is a chain of businesses that a product passes through before reaching the consumer. It consists of the distributors, wholesaler, supplier and the retailer. This means that as a product moves down the chain, the cost increases due to elements incorporated such as promotion, cost of transportation and also taxation (Borissov, 2015).

King Fresh Beverages will prefer to sell the products directly to the end user where the consumers become the leading distributors. The marketing strategy will incorporate network marketing where end-users will be required to buy a sample and market it to other people, in turn, these people will sign up as distributors who will take products to the consumers. This brings benefits when the company has increased distributors who enjoy benefits such as commissions, monthly bonuses and also significant discounts for buying the products (Staff, 2015).

· Risks that the business may face.

The business might have several risks. As iced green tea has a growing market many companies that are producing similar products and have dominated the market has a more significant customer segmentation which may pose a risk. However, through product differentiation, we hope to mitigate this risk (Gandee, 2014).

There have also been changes in technology for the production of green tea. It is therefore risky as there has been no proven method for the production of green tea. Due to lack of a traditional, proven process, we will need more capitalisation so that we prototype the best market that other companies use. We will seek global consultation on how to go about the process to reduce the cost of technological obsolescence (Martin, 2018).

· SWOT Analysis

Strengths	Weaknesses
· Market branding using testimonials. · Have a competitive advantage in the product differentiation. · Health benefits such as prevent cancer and promote weight loss which has increased over the years. · Uses network marketing as a method of distributing the product.	· Initial costly setup of equipment and technology necessary for production. · The products might be costly. · There is a poorly established method of distribution over long distances and seas.
Opportunities	Threats
· Increased demand for iced green tea in the market. · The popularity of the product among young and middle-aged individuals.	· Unforeseen regulations that may pose challenges to develop the product. · Poor technology and lack of skilled workforce. · Competition with already established companies.

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References

Gandee, T. A. (2014). Strategic planning in small business: Exploring its influence on transitional growth (Order No. 3608817). Available from ABI/INFORM Collection. (1496772416). Retrieved from https://search.proquest.com/docview/1496772416?accountid=45049

Martin. A (2018, February 17). The Apple Product Strategy. Retrieved from https://www.cleverism.com/apple-product-strategy/

Rhonda Abrams (2000, September 11). Sorting Out Your Strategic Position.

Retrieved from https://www.inc.com/articles/2000/09/20268.html

Staff, I. (2015, March 6). Distribution Channel. Retrieved from https://www.investopedia.com/terms/d/distribution-channel.asp

Borissov, B. D. (2015). DEFICINCIES IN THE IMPLEMENTATION OF SWOT ANALYSIS. Economic Archive / Narodnostopanski Arhiv, 68(1), 15-31.