business plan

Daniel Goldsmith, DBA

Strayer University

March 3, 2018

Company Description

The name of my non-alcoholic company will be Strawberry Rite. The reason for choosing this name is because it is unique, appealing and it gives the company a positive image to the public. In addition, this name brands the company for the future. Our company will major in the production of red and white nonalcoholic wine brands whose major target will be individuals who do not take alcoholic beverages for various personal reasons. Strawberry Rite will follow the philosophy followed by regular wine producers of producing many different flavors in order to cater for the many different tastes and preferences of customers. These different NAB brands will be sold in both wholesale and they will be availed in nightclubs, restaurants as well as lounges where non-alcoholic adults go to have good times. Strawberry Rite Wines Inc. will see to it that customers enjoy a glass of nice, quality, refreshing non-alcoholic wines.

Company Mission Statement

"Our mission statement is to be world's premier producer of quality, sophisticated, and satisfying non-alcoholic wines. We are dedicated to providing our customers with the best tasting and healthy products while not compromising the authenticity of their regular wine experience"

This mission's statement will serve as the roadmap, the game plan and a definition of what the company will be doing. It will be updated regularly to help rebrand the company's future while also increasing its relevance in the every dynamic competitive business environment.

Emerging trends in the NAB industry

Just like the other industries, the NAB industry is a very competitive and dynamic one. The market for NAB has been growing gradually over the last couple of decades. According to a recent research by Grand View Research, the NAB market size is expected to grow and reach $1.6 trillion by the year 2025. The research established the increasing societal awareness of serious health problems related to alcoholic beverages has been a key driver of the NAB market growth (Grand View Research, 2017). These findings clearly show that the demand for soft adult nonalcoholic beverages has been on the rise and consumers can now get ready NAB that has had "the same amount of thought put in them as a spirit". The society is now aware that obesity and other nutrition-related health problems are closely related to alcoholism and for this reason, many are shifting to NAB in order to overcome the risk of the aforementioned nutrition-related diseases (Santos, 2013).

Grand View Research also found out that North America accounts for the largest NAB industry in the year 2016 (Grand View Research, 2017. This trend owes to the presence of a well-developed economic as well as high standards of living. Financial Times, (2016) reports that there has been a strong growth of non-alcoholic drinks since 2010. According to their survey, the world market growth of non/low alcohol beer has grown 4% while that of ready-to-drink beverages has grown by 10%. Moreover, the study reveals that in most countries, including the US and the UK, the decrease consumption of alcohol has been contributed largely by the aging population.

From above, it is clear the changing market dynamics in the beverage industry are advantageous to Strawberry Rite Inc. who seek to venture into the NAB industry. The company will specialize in the production and selling of nonalcoholic wines for a number of reasons: one, it seeks to take advantage of the changing consumer wine preferences, two, it is one of the company's key objectives to build a healthier society by providing an effective alternative to alcoholic wines/beverages. Thirdly, Strawberry Rite Inc. is committed to ensuring that individuals who do not like alcoholic wins for religious, health and personals reasons get an opportunity to enjoy wine.

Strategic Position

The company will build its business around market leadership positioning. As pointed out previously, Strawberry Rite Inc. primarily targets the growing population of individuals who don't like alcoholic wines due to aforementioned reasons. Every operation, decision, and activity of the company will be centered on meeting the needs of this growing population cohort.

Distribution Channels

Effective distribution channels are key to the success of any business. In today's competitive business environment a distribution channel strategy is an integral part of the DNA of many companies. For this reason, Strawberry Rite Inc. will combine the following areas in the preparation of its distribution plan: company profile, portfolio structure and price positioning, go-to-market policy, trade and retail marketing, and e-commerce.

Being a new entrant into the beverage industry, the company will be aggressive and it will deploy several distribution channels in order ensure its products reach as many customers as possible. The first major distribution channel that will be employed in online marketing. Strawberry Rite will develop a professional website through which it will market its various wine brands. This will be combined with social media advertisements d promotions. Online marketing not only offers the company with a brandable and scalable platform but it is also cost-effective. For a start-up like Strawberry Rite, this is a key competitive advantage.

Next, the company will employ cross-joint ventures with some of the well-established companies who are not direct rivals. In order to ensure distribution and marketing effectiveness, reputable, vastly-experienced and well-established companies will be preferred.

The other distribution channel option is a referral and affiliate programs as well as commercial trade shows. The company will combine these different channels in order to ensure its new nonalcoholic wines reach as many customers as possible in order to earn itself a substantial market share in the industry.

Pertinent Risks

Being a new entrant into the market, Strawberry Rite faces a number of potential risks that must be handled with a lot of care. The first major risk is the serious inconsistency in the beverage market. The market has been growing, as discussed in this paper, but the new demand has not yet materialized into dependable and consistent sales. This is an inherent risk that the company must take. Rising competition is another serious risk. Every day, new companies are entering the nonalcoholic beverage industry in order to tap the new opportunities provided by the changing societal changes towards non-alcoholic beverages. The third notable risk is the high cost of starting up and entry into the competitive market (Blank, 2012).

Strawberry Rite must take the above-mentioned risks. However, there are a number of strategies that it must employ in order to overcome these risks. Firstly, it needs to invest in extensive market and market research in order to tailor every activity, decision, and product towards meeting customer needs, tastes, and preferences. Market research will help the company to avoid costly mistakes and errors that can lead to failure. Secondly, Strawberry Rite will engage in pragmatic marketing initiatives including social media marketing and direct selling in order to build the much-needed customer relationships. Thirdly, it will engage in a number of CSR activities such as supporting self-help groups, charity work, and health promotion programs. These activities will help to build a positive image which is important to its long-term growth.

SWOT Analysis

Analysis

Strengths

· Quality brands-Strawberry Rite has a wide variety of nonalcoholic wine brands. This is strengths that differentiate it from other competitions in the market.

CSR-Strawberry Rite will build a very positive public image by engaging in CSR initiatives such as philanthropy.

· Fantastic marketing strategies- the company will employ e-commerce, cross-joint ventures, and direct selling in order to reach as many customers as possible.

Weaknesses

· High-cost structure-Strawberry Rite is a start-up and this means it will incur high costs to enter the market.

· Limited capital-Strawberry Rite is a new entrant and therefore, it lacks a reliable revenue stream to enable it to raise enough capital for all its needs.

Opportunities

· A societal shift to NAB-the society is increasingly shifting to NAB due to the many health risks posed by an alcoholic beverage.

· Technology-Many advantageous technologies are being made which can help the company improve the efficiency of its operations, cut down costs, and also improve quality.

· International markets-Nonalcoholic wines are also demanded in international markets and this is a new opportunity for Strawberry Rite.

Threats

· Intensifying competition-other than the existing competition, there is the threat of new entrants in the near future.

· Legal changes- there is the threat of change of laws and regulations governing the beverage industry, which can potentially harm the success of the company.

Target Company Analysis

Strawberry Rite is a non-alcoholic wine producing Start-up Company that aims to venture into the non-alcoholic beverage industry. The company will produce red and white nonalcoholic wine brands that target individuals who do not take alcoholic wine brands due to their religious, health and personal reasons. Strawberry Rite will produce different brands with different flavors in order to cater for the diverse consumer needs. In a nutshell, the company aims to offer quality and sophisticated non-alcoholic wine brands that give the same wine experience as the alcoholic counterparts. This paper has developed the marketing plan and a marketing budget which will be used to differentiate the company through marketing and brand awareness. These are critical factors that will enhance its entry and success in the increasingly competitive nonalcoholic industry.

Strawberry Rite's wine brands will be sold in nightclubs, restaurants, and lounges where individuals who do not take alcoholic beverages meet to have good times and nice beverages other than soda and juices. The company will be located in VA Chantilly, an area with a total population of 23,029 as reported by US Census Bureau, (2010). Noteworthy, this an area that closely borders Washington DC, one of U.S's largest metropolitan areas. It is an area occupied by people who lead normal lives. These are people who have hectic, busy, and often tiresome lives as they travel to and from Washington for work. In the evenings and mostly during weekends, they meet in restaurant, hotels, nightclubs and other entertainment places to relax and have a good time in lively and decorated shades.

VA Chantilly is a prominent place in the U.S especially due to its well-known recreational places such as Fairs Lakes Virginia. The area has over 23,014 households with a total population density of 1916.6 people per square mile. According to U.S Census Bureau, (2010), the income of people in VA Chantilly is around $121,141 with a per capita income of $44,267. Another interesting fact is that this is multicultural area diversely occupied by people from different ethnic and racial backgrounds, typically African Americans, Hispanics, Asians, and Native Americans.

Competition Analysis

As a start-up and a new entrant into the beverage industry, competition will be a major challenge facing Strawberry Rite Co. There are bigger and well-established nonalcoholic beverage producers that will mount direct competition to the company. One of them includes Mustang Sally brewing, which owns repeated custom wines. However, the company is not big enough since it owns only one retail-store shop in the area. The other company is Ocelot Brewing Company which is the largest and leading nonalcoholic wine producer and supplier in VA Chantilly. The company has more than 20 stores across the city (Grand View Research, 2017). Despite this major strength, Ocelot has been facing financial crises in the recent past majorly due to debt management.

Out of all the different competitors, Mustang Sally will likely be the strongest competitor. Other than this, there are numerous other bistros and bars which will also make it difficult for Strawberry Rite Co. to garner its desired market share. However, the high population coupled with the constant flow of tourists in Chantilly will be a big booster to Strawberry Rite's growth.

Market share Distribution (Grand View Research, 2017).

Demographic Description

Consumer

· Age Range- 15 years and older

Majority of the population in this targeted market is between 15 years and older. These are people are likely to consume the company’s products. The company can also subgroup them into smaller groups and come up with products that meet the needs of each respective group.

· Income Range- $15,000 - $199,999

The income range of the individuals targeted by the company earn between $15,000 and $199,999. Customer’s purchasing power is a very important factor to consider when developing new products. This information will be very important to the company because it will determine the pricing of their products.

· Gender-Both male and female

The company’s brands will marketed to both genders. Win is a product consumed by individuals from both genders. However, strawberry Rite Inc. can also segment the two genders and produce wine brands that suite their respective needs.

· Occupation-all types of occupation

Wine is consumed by people from across al occupations.

· Marital Status-Single and Married

Nonalcoholic wines will be sold to both married and unmarried people indiscriminately.

· Ethic Group

Strawberry brands will be sold people from all ethnic and racial backgrounds indiscriminately. This will enable the company to attract and broaden its customer base.

· Level of Education-Al education levels indiscriminately.

The different wine brand are accepted to appeal to people from across all education levels. In other words, education level is not expected to be a significant factor in the marketing of Strawberry Rite’s products.

· Home Ownership- sole ownership, joint tenancy, Joint Tenancy tith Rights of Survivorship (JTWROS), tenancy in common, and community property.

The Five Fs

Strawberry Rite needs to carefully tailor its message to meet the expectations of its potential customers and its business model. This will be done by following the Five Fs framework as discussed below:

i. Function- Strawberry Rite guarantees quality, tasty, nonalcoholic wine enjoyable at all times on all occasions.

ii. Finances-Strawberry Rite nonalcoholic wines are affordable price thus encouraging purchase. Strawberry Rite employs a premium pricing strategy which helps in profit generation.

iii. Freedom- to enjoy quality and sophisticated non-alcoholic wine every day and everywhere, wine that does not lose the authenticity of their regular wine experience

iv. Feelings-classy nonalcoholic wine that brings together friends for happier moments.

v. Future-Strawberry Rite nonalcoholic wines guarantee a healthy and therapeutic wine experience for a longer, happier and healthier life.

The most important message to customers is assurance of quality and affordability of the new wine brands. Strawberry Rite must inform customers that it is a premium brand company that is dedicated to satisfying its customers with quality and sophisticated nonalcoholic wine brands.

Marketing Vehicle

After clarifying its message to customers, the next step is describing how that information will be disseminated using various specific tools. One of the most effective marketing tools today is social media. The company will employ social media platforms including Twitter, Facebook, and Instangram to market its products. For example, it will use hashtags such as #NABFun, #NABHealth to inform its potential customers about its unique wine brands. High-quality advertisements will be created that will involve photos, videos, audios.

Noteworthy, Strawberry Rite will also use these social media platforms to interact and build relationships with its customers. In addition, they will be used to obtain feedback about the products, promotions, and any other relevant information that can help gain customer loyalty. Online ads will be a crucial marketing tool that will be used to make announcements, launch new brands, etc.

Next Strawberry Rite will create special message videos that will serve as marketing tools on its website. Through this website, the company will introduce new products and also encourage customers to make preorders (Abrams, 2010). On the first page of the search, video links will be displayed in order to direct any interested customer to the company wine brands. The benefits of using this tool is that it is cost effective and it is effective for marketing purposes. Search engine optimization will be used to drive both quality and quantity of traffic into the company websites. In order to improve results, SEO will use employ unpaid searches and also give its website more exposure using Search Engine Marketing (SEM).

Another important tool that will be used in is mobile billboards with graphics and build-out additions. Wine branded-trucks will be used promote the company products around the local region. While these two methods might be costly, they are very effective marking tools especially for a start-up like Strawberry Rite.

Lastly, Strawbery Rite will use direct selling in order to effectively reach its customers. The company will offer coupons to both non-rime and prime consumers in order to boots pre-orders form consumers who might need to use coupons. In recreational areas, the company's marketing personnel will strategically place tables and kiosks in order to reach potential customers such as tourists and college students. These marketing tools have been used by prominent companies such as Coca-Cola and AB Wine Inc. and they were very effective (Kotler, 2009). As such, Strawberry Rite will utilize them in order to enter and gain a market share in the market.

Competition against Market Leaders

The market leaders in the nonalcoholic beverage industry is Coca-Cola. In order to fight-off competition from the market leaders, Strawberry Rite Inc. will employ two major strategies. The First one is differentiation whereby the company will offer high quality, good-tasting non-alcoholic wines. This is expected to give the company a unique edge in the market as it major in providing a niche product-nonalcoholic wines.

The second strategy is position. The company will follow a number of paths to position itself strategically in the competitive beverage industry. For instance, it will seek to dominate its target category-nonalcoholic wine.

Ethics & Social Responsibility Plan

Describe the ways in which your company is committed to being a good corporate citizen.

With the increasing competition in markets today, companies are devising new methods to gain an edge in the market. Corporate responsibility is increasingly becoming one effective way through which a company can improve its image in the eyes of stakeholders and the communities where it operates (Paetzold, 2010). Strawberry Rite Inc. understands its long-term societal and environmental impacts and for this reason, it plans to incorporate them into its strategic plans as well as risk management activities. Notably, Strawberry Rite Inc. will carry out various corporate social responsibility initiatives which will not be a gimmick meant to attract customers. On the contrary, the various CSR initiatives will be genuinely and authentically meant to improve the lives of the people within the company and the community surrounding the company, and also to ensure environmental safety.

Firstly, Strawberry Rite Inc. will seek to create job opportunities in the surrounding community. The U.S and the world at large, is facing a daunting challenge of unemployment, especially among the youth. According to Bureau of Labor Statistics, (2017), the rate of unemployment in the country stands at 4.1%. This company will play a role in tackling unemployment conundrum through various ways. Firstly, it will partner with local academic institutions for its own talent needs. By employing people from around who possess the required skills and qualifications, the company will help to address the challenge of unemployment in Washington DC. Secondly, Strawberry Rite Inc. will partner with government and non-profit organizations to train and educate the locals on how they can start and run successful small businesses as part of the solutions to the unemployment problem.

The second component of Strawberry Rite's CSR is the honest and fair treatment of its employees. One of the fundamental parts of Strawberry Rite Inc. organizational culture is employee empowerment. As Millenials take a more dominant role in the current workforce in the U.S, this company must take initiatives to share their beliefs and values with its employees (Bhattacharya et al, 2013). It will embrace a strong CSR message that encourages its involvement of employees in decision making. Employee buy-in will be encouraged in order cultivate a sense of ownership among the employees. Next, Strawberry Rite Inc. will embrace diversity by employing persons from across all cultural, educational, racial, ethnic, and religious backgrounds. It will also create policies and procedures that support workplace diversity such as anti-discrimination policies.

In addition, the company will build a culture whereby leaders and managers listen carefully to employees, forgives mistakes, praises efforts and improvements, and more importantly, provides career growth opportunities. It is part of the company's long-term plans to develop career development programs for its employees such as tuition reimbursement for those who wish to advance their education as well as in-house professional training and certification. Lastly, it will encourage and support employees to achieve work/life balance.

Discuss how your company's activities will affect the environment and identify the steps you will take to mitigate any negative impacts.

Environmental protection will also be a constitutive part of the company's CSR plan. The company understands that some of its activities, especially in its production faculties have an adverse effect on the environment. As such, it will make a concerted effort to make its activities as environmental-friendly as possible. The first essential strategy in doing this is ensuring full compliance with the local, state and federal environmental protection laws, regulations, and standards.

Secondly, Strawberry Rite Inc. will reduce its waste as much as possible through recycling of its bottles and used water. It will emulate Coca-Cola's water stewardship approach by improving its overall water-use efficiency, manages its wastewater and proper discharge of stormwater at its plants (Haynes et al, 2012). Next, the company will use of biodegradable materials, auditing its facilities, going paperless and measuring the amount of waste it produces each day.

Thirdly, Strawberry Rite Inc. will encourage its supply chain stakeholders to embrace environmentally and socially responsible activities in order to increase their environmental performance. For instance, the company will closely monitor and evaluate its suppliers' and distributor's social and environmental practices. As the company grows, it will start to contribute towards environmental protection initiatives both locally and country-wide.

Determine any health issues/claims related to the product you are making, whether negative or positive. Suggest the strategy your company will use to mitigate any negative issues and to ensure any positive claims are true.

Unlike alcoholic wine brands produced by other companies which have adverse health effects on consumers, Strawberry Rite's nonalcoholic wines will do the contrary- help prevent the negative health effects of alcoholic beverages. For instance, Strawberry Rite's wine brands will be suitable for breastfeeding mothers, diabetic individuals, and those with other health problems that don't allow them to take alcoholic beverages. Another benefit of Strawberry Rite's wines is that they are low in calories.

Many beverage products have negative health impacts on certain segments of a population (e.g., children, pregnant mothers, etc.). Suggest your company's plan, through advertising, distribution, and/or other methods, to target and reach only appropriate market segments.

Just like the other beverage companies, Strawberry Rite is required by law to provide its consumers with information regarding any negative impacts of its products. Fortunately, products, as pointed earlier, are healthy and beneficial to individuals with health problems such as heart disease, and diabetes. It is safe for everyone including pregnant mothers. However, in its advertisements, Strawberry Rite will ask parents who might be uncomfortable with their children taking its products to intervene.

References

Abrams, R. (2010). Successful Business Plan: Secrets & Strategies Paperback. Planning Shop.(ISBN: 978-1933895147).

Bhattacharya, C. B., Sen, S., & Korschun, D. (2013). Using corporate social responsibility to win the war for talent.

Blank, S. (2012). The Startup Owner's Manual: The Step-by-Step Guide to Building a Great Company. Cork: BookBaby.

Financial Times, (2016). "Financial TimesThirst for adult soft drinks grows". Retrieved January 22, 2018, from https://www.ft.com/content/a639e708-c767-11e6-8f29-9445cac8966f

Grand View Research, (2017). "Nonalcoholic Beverage Market Size Worth $1.60 Trillion By 2025". Retrieved January 22, 2018, from https://www.grandviewresearch.com/press-release/global-nonalcoholic-beverage-market