Marketing plan

Running head: COMPANY DESCRIPTION AND SWOT ANALYSIS 1

COMPANY DESCRIPTION AND SWOT ANALYSIS 6

Assignment#1 Company Description and SWOT Analysis

Chuthathip Taravanich

Strayer University

BUS599 Strategic Management

Dr. Chris Hase

July 23, 2018

Nowadays people turn to care more about health and beauty especially teenagers and adults in Thailand. Most of the Thai's adolescent feel that they would like to develop their beauty to be the best. Therefore, the beauty drink which contains collagen, fiber, and assorted vitamin can reach the customer demand. Also, this beauty drink will help the skin to be more elevated and firm, and help the excretory system under the name F(x). F(x) refers to the function in mathematics that is to say this product is the functional drink. The functional drink is typically intended to provide specific health benefits such as increasing the energy, boosting the immune system (Corbo, Bevilacqua, Petruzzi, Casanova & Sinigaglia, 2014).

Statement of mission

F(x) views the mission as making everybody get beauty from the inside and make the world more perfect by beauty shape, thought, and mind because F(x) believe that when people feel great from inside, they are going to do the great things as well. F(x) also plans to build a long-term relationship with customers through providing the knowledge and how-to have a healthy life. At first, F(x) will have a booth exhibition in flea market which full of the target customers to provide the knowledge and have some activities to know the customer and then expanding to another area around Bangkok, Thailand.

The trend in non-alcoholic beverage industry

According to the data, the population pyramid of Thailand tends to be constrictive which have smaller percentages of young people. This type of population shows that the countries have the characteristic of social and economic development, where most of the people can access to the quality health care and education (Lauren, 2016). For this reason, the beauty drink which concerns about people health could reach the people's demand. The growth rate of the food and beverage industry of Thailand is expanding 11.53% YoY. The customer expenditure expected to expand modestly by 5.2% with the strong growth in many ways such as 7.4% in education, 5.9% in communication, and 5.5% in food and non-alcoholic beverages (Wenda, 2017). Therefore, there are opportunities for growth in this industry.

Strategic position

In this industry, F(x) is not the first person who discovered this product so, the strategy which appropriate is sales channels because the company would like to use many sales channels to access the customers not only in the supermarket or store but also the vending machine and online. F(x) also think about the delivery of the promotion such as buy 20 bottles of drink, get free delivery to the office.

Overview of company’s distribution channels

The F(x) product sells in many channels, for instance, the vending machine which located in many provinces around downtown and also the public place in suburban, and in the supermarket where people conveniently purchase such as Seven-Eleven, Family Mart, Central, and Robinson. We also want to connect with the customer via Facebook or Instagram where the customers can get in touch with F(x)'s news and promotion. Moreover, F(x) have the delivery service for the group of customers such as the officer. We have the warehouse in the supermarket store around Bangkok which is the benefit for the delivery service.

Risks

There are many risks that the company should face for instance

1. Market Risk: According to the slow economic growth, people may not be willing to pay for the luxury good because the customers are not confident in the economy and they should save the money for the unexpected situation such as financial crisis and political situation. This kind of risk is difficult to overcome.

2. Competitive Risk: In the functional drink market, there is strongly competitiveness. The brand that owns the 38% of the market share is ManSome; then the second brand is Sappe whose owns 30%. In addition to the big competitor, there are no barriers in this market, and the people's preference can change every moment nowadays. So that, the marketing is the keystone of business.

3. Technology Risk: As the information above, the competitiveness in this industry is intense. Many companies use the research and development to find the new product to satisfy the customer's need. Also, the price competition that is one of the factors that people choose to buy the product. Technology will help the producers reduce the cost and increase the margin per unit. Therefore, if F(x) cannot discover the innovation, F(x) will be adverse others company.

SWOT analysis

SWOT analysis stands for Strengths, Weaknesses, Opportunities, and Threats (Dan, 2017). This analysis is a way to evaluate the company, and we can use this analysis to develop our company to be better.

Strengths · The ability to discover the new product such as the new flavor of beauty drink or new gimmick like chewy jelly in the drink because we have the talented research and development team. · We have the specific stuff such as management team and marketing team who have a lot of experiences in this industry. · We always provide the new promotion to attract the customer.	Weaknesses · The size of the company which is smaller than competitors that means marketing budget is low. · The product has special characteristics that make the sales volatile from the popularity of consumers. · We target only particularly group like adolescence to mid-age people who aware of healthy life.
Opportunities · Customers behavior change to concern more about health not only in Thailand but also around the world. · The opportunity to expand the product to another market through a dealer or business partner. · F(x) can make a new partner such as restaurant, fitness center for building up more distribution channel.	Threats · The intense competitive that make the company be in trouble because there are products that can substitute the F(x) drink. · The fluctuating economic conditions affect the consumer's behavior.

References

Corbo M., Bevilacqua A., Petruzzi L., Casanova F., & Sinigaglia M. (2014). Functional

Beverage: The Emerging Side of Functional Foods. Retrieved from

https://onlinelibrary.wiley.com/doi/full/10.1111/1541-4337.12109

Lauren B. (March, 2016). What are the Different Types of Population Pyramids? Retrieved

from https://populationeducation.org/what-are-different-types-population-pyramids/

Wenda M. (February, 2017). ASEAN in Focus: The Thai Consumer Market. Retrieved from

http://economists-pick-research.hktdc.com/business-news/article/Research-

Articles/ASEAN-in-Focus-The-Thai-Consumer-

Market/rp/en/1/1X000000/1X0A8YMK.htm

Dan S. (December, 2017). How to Do a SWOT Analysis for Your Small Business. Retrieved

From https://www.wordstream.com/blog/ws/2017/12/20/swot-analysis