Assignment 5 Due 12/8/18 Saturday 11PM EST

NAB Company Business Plan

The Company’s Name

The name of non-alcoholic beverage company is Pure Drinks Company. The chosen name has its uniqueness and sends a clear and attractive picture to the customers. There is a great power in a name of any company and for Pure Drinks Company is not different. when a customer comes across this name, the first thing that comes into his her mind is the great potential and capacity of the company to produce drinks that are of great quality, affordable and customer-satisfying. Countless researches have proven that one of the fundamental factors for the success of any business is the name the company has. Having a precise, memorable and appealing name puts a company at a higher level than its competitors. (Lasher, 2005)

The Business and the Product

Pure Drinks Company is a non-alcoholic beverage producing company that will major in the production of various brands that will be marketed to its various customers. It will entail production and marketing of small, medium and large quantity drinks. Though there is a stiff competition in the already existing market, the company will prioritize and center its services on the customers’ preferences, product's affordability, uniqueness, and maximum hygiene. The company's management will uphold the high degree of professionalism, hard work, and teamwork. On the other hand, the company’s workforce will be of its own kind. By integrating all these factors, the success of the business will be realized (Griffin 2015). The products which will be the soft drinks will come in different tastes, quantities, and brands. This is to ensure that each and every customer’s preference is met and their expectations are also met.

Mission Statement

Pure Drinks Company’s mission statement will be, ‘To inspire happier, more refreshed and healthier individuals by offering fantastic, affordable and real drinks to all.’

The mission statement is vivid and well guiding to the company and promising to the customers. The company will treat its customers’ happiness as the first priority. When customers take well-manufactured drinks, the first thing that is triggered in them are feel-good hormones. Moreover, happiness goes hand in hand with the affordability of the product. A product that caters to every customers' economic strengths gets great acceptance in the market and the company is enabled to main a long-term relationship with customers. (British Columbia, 2001)

The production of the brands will uphold the very immense level of quality and hygiene that will give an end product that is healthier. Besides, the raw material to be used will be natural with the very low level of chemicals and this will give the product a taste and quality that is universally recommended.

Target Market and Market Trends

Pure Drinks Company is a non-alcoholic beverage producing company that seeks to target the health-conscious consumer with a range of satisfying drinks that are affordable and are of great quality. As the company intends to produce and market small, medium, and large quantity drinks, it is keen to prioritize and center its services on customer preferences, as well as adjust to their buying power. As the health and wellness awareness trend sweeps across the food and beverage industry, Pure Drinks Company hopes to leverage the increased focus consumers are having on these aspects and so position itself as a replacement choice for the unhealthy, bad-for-you beverages that they previously enjoyed.

Since the global non-alcoholic beverage market is projected to generate a revenue of $1189 billion by 2023 (Mordor Intelligence, 2018), Pure Drinks Company would be well placed to tap into the new fad that has consumers purchasing nutrition and performance drinks that act as meal replacements and guilt-free snacks. The target consumer that Pure Drinks Company ought to have in mind is a health-conscious customer who looks to not only get refreshment from their non-alcoholic beverage but also one who expects to be sated, energized, or even receive any one of the extra benefits such as blood sugar management that power beverages now sport. Since Pure Drinks Company’s target market comprise of a health-conscious demographic, the sales team would need to be comprised of healthy and spirited people who embody what that the company intends to portray.

Strategic Position

Pure Drinks Company intends to adopt the lean startup methodology as it is launching as a new enterprise with the possibility of either being a hit or a miss. Using this approach, the company will be able to experiment some more with its product rollout, especially as this strategy allows it to rely more on customer feedback as opposed to intuition, as well as iterative design over the more traditional concept where a big design is indicated up front (Blank, 2013). For this reason, Pure Drinks Company does not intend to have an inflexible business plan that attempts to figure out all the unknowns of a business in advance before its idea is even executed. As a startup, it is critical that Pure Drinks Company is able to go quickly adapt from failure to failure if it encounters it, iterate on, and improve on its initial ideas as it continually learns from its customers if it is to succeed. Using this strategy, then, the company will be able to differentiate itself from competitors by adopting nimbleness and speed in asking for feedback from consumers on various elements of its business model, so that it will be able to make further small or substantive adjustments to its product as necessary.

Distribution Channel

Pure Drinks Company will make use of a distribution center so that its beverages are bulk-shipped to a warehouse from which third party distributors that the company has established a relationship with can move the product to retail outlets where retail store employees can then stock up shelves. This distribution strategy will be less expensive as compared to direct store delivery, which will help in savings costs.

Risks

One of the major risks facing the company is that of competition from established competitors. Established soft drink manufacturers such as Coca-Cola and Pepsi who already control about 40 percent of the market already have strong distribution channels in place, even as they have the capability to repurpose most their production facilities to produce healthy drinks as opposed to carbonated soft ones. Pure Drinks Company can market itself as a healthy option from the start, thus capitalizing on the fact that it is purely motivated to providing consumers with healthy product.

Regulatory risks also pose a challenge, with the company being required to comply with workplace safety and health regulations, product and chemical regulations, and even environmental permit requirements, not to mention restrictions on it ought to package its advertising message to consumers. Pure Drinks Company will have to institute a department that oversees regulatory compliance so that it has an accurate and complete overview of those regulations and requirements that appertain to it (Clark, 2017).

Pure Drinks Company SWOT Analysis

Strengths

Pure Drinks Company’s is poised for aggressive growth thanks to the strong and experienced sales managers and teams that it has in place. The company has also already secured various contracts with sporting celebrities to have them advertise its nonalcoholic beverages and increase their visibility. Further, the company has the current fad that is healthy living and consumption to fall back on as it seeks to generate increased interest in the consumption of its products.

Weaknesses

As a startup, Pure Drinks Company has had to contend with an initially costly development phase which has left it strained where its capital and resources are concerned. The company also has to deal with the already well-established competition such as Coca-Cola and Pepsi, as well as a host of other nonalcoholic beverage manufacturing companies.

Opportunities

The company is investing heavily in the market expansion whereby it is aiming at setting up more branches in various countries across the globe. The few branches the company has are performing well and this is encouraging the company’s management to expand its market base. In so doing, its sales will dramatically increase thus resulting in an increase in revenue. Some of the places that the company is aiming to open its business doors are in Europe and Africa. After extensive market research and analysis, the company has found out that people from these two continents are the largest consumers of non-alcoholic beverages.

Technological innovations and developments are also providing an ideal opportunity for the growth of the company. The company is embracing the use of the modern and advanced technology in its production, distribution, and promotion of its products. This is economic, efficient and effective and given the company an upper over its rivals in the market. To fully meet customers demand, the company has embraced mass production strategies.

Threats

The most endangering threat that the company is facing is stiff competition from its rivals. The market is saturated and there are countless companies manufacturing beverages. Both the existing and new-comer companies are posing a serious threat to Pure Drinks Company. Strategic plans are urgently needed to be put in place to withstand the competition or else, the company will unable to achieve its short and long goals.

Economic setbacks such as inflation are also unavoidable threats for the company. The current economy is dynamic and ever fluctuating and inflation is becoming commonplace in the current business arena. Cost of production may sometimes dramatically rise due to the increase of the price of the raw materials which results in the decrease of revenue and profit to the company.

References