Discussion Week 9 due Thursday 11/29/18 9pm EST

Pure Drink Business Plan

Amy Guy

Strayer University

BUS 599

Prof. Andrea Banto and Afraa AlBahrani

November 25, 2018

EXECUTIVE SUMMARY

Pure Drinks Company is a new firm intending to invest in the non-alcoholic beverage market. This company's unique strategy is to offer new, unique and diverse products to address the need by consumers for new products away from the traditional ones. What's more, consumers are prioritizing their health more than ever before. With this trend noted, our beverage products will be primarily centered on the health and wellbeing of our customers. NAB is our flagship product.

This company is inviting prospective investors who share our ideology to invest one million dollars in helping to facilitate the growth and extension of our factory and fund our original market goals geared towards capturing a significant portion of the beverage market in the starting years of the organization's operations.

We have a well thought out plan; competitive pricing while offering value will is a sure strategy to attract new customers while satisfying them with quality non-alcoholic drinks. Our business plan projects a momentous growth in the coming years. Moreover, the invested amount yield high returns for our investors. This growth will stimulate more investments for venture capitalists in Pure Drinks Ltd.

We have an enthusiastic, profoundly devoted and highly knowledgeable employees with vast experience related to our company. With this in mind, we are confident that our company is being steered towards the right direction while adhering to the wellbeing of the society as our culture of social responsibility, which is briefly explained in our business plan.

1. COMPANY DESCRIPTION.

Pure Drinks signifies zeal and passion with optimism that our customers will receive our unique health drinks with excitement.

a. Nature of Products offered.

Customers love variety, so, Pure Drinks is offering variety in its line of health drinks to attract different customers and their preferences. What's more, with variation, the business will reach more customers while generating profits. Among the products offered by Pure Drinks are carbonated drinks, water, and coffees, tea-based drinks and fruit, and vegetable-based drinks.

b. Quality

To be up to par with the global quality standards, the safety and quality of our product is a top priority. Every product undergoes a rigorous quality test to make sure we surpass our customer's expectations. Quality is one of our primary competitive strategy to give us edge over our competitors. Furthermore, consistent quality will guarantee our company loyal customers.

c. Price

At Pure Drinks Limited, one of our unique business strategies is pricing. We will offer our customers high-quality drinks while making it inexpensive. This strategy gives our customers value for their money with the new business developments in mind. Not only so but we also endeavor to protect our product from a probable hostile economic environment which is a recipe of the price hike. We want to be consistent in our pricing. Details reading our pricing will be explored in-depth in the following section on our marketing plan.

d. Service.

At Pure Drinks we strive to make sure, when our customers receive the products, they are in top quality always. The products are packed with precision and utmost care. What's more, we are investing in customer's feedback line on social networks platforms like Facebook and Twitter to liaise with our customers while addressing their queries and taking their suggestions regarding our products. A toll-free line will also be initiated for the customers to call in anytime for help or inquiries.

e. Responsibility to our Customers.

At Pure Drinks, with every business decision the customer has to be in the equation. Customers are the focal point of any business establishment. With this in mind, we are always looking for new ideas while taking customers suggestions to create a relationship with our customers. This relationship will make us understand them better, cultivate trust between us.

f. Management Style/Relationship to Employees.

At Pure Drinks, we prioritize our employees, and customers’ opinions and ideas improve the mission of the company while providing both the employees and the customers with what the need. Our employees are always welcome to offer any suggestion regarding the company operations or any other issue. What's more, our managers are vetted with high credentials and capability to steer our company to greater heights. Despite these qualities, we are continually updating their skills to keep up with the dynamic market trends.

g. Incorporation of other New Development/ New Technology.

The market today is dynamic. With this in mind, at Pure Drinks, we are continually improving and adapting the new technology to improve our output capacity, quality of our products and more importantly maintain and increase our market share. The technology portion is discussed in detail in our concluding stages of the business plan.

h. Profitability Goals/ Growth.

To enable us to determine our money needed to meet all our expenditures while making a profit we have to set a profitability goal. Pure Drinks is planning to explore new markets to increase profit margins. We will achieve this objective by offering customers quality products at a reduced price. While striving to grow, the price is one of our key strategies because we understand customers have in mind what amount they are willing to pay for a specific product.

i. Relationship to the Community and the Environment.

Social responsibility is mandatory for any company. With this in mind at Pure Drinks, we are continually educating our employees on the importance of environment conservancy. Furthermore, we are continually promoting recycling and importance of green energy. This ensures our business is operated sustainably.

j. Management Goals.

Pure Drinks is compliant of the globally accepted management standards to warrant that the various responsibilities under our business policy are achieved while continually expanding our non-alcoholic beverage business.

k. Pure Drinks Limited Mission Statement.

· To transform and continually innovate unique products to expand our company.

· To establish our total guarantee to offer consistent quality in our line of healthy non-alcoholic beverages to our consumers.

· To offer and maintain affordable products at par with the new market development.

· To consistently adhere to the market regulations governing the Non-alcoholic drinks industry.

· To cultivate a relationship with our customers based on trust.

· To create a serene and safe working environment for our employees to enhance their productivity.

· To consistently conserve our environment by practicing recycling and water conservancy.

l. Funds required.

To facilitate the plant expansion and market efforts we will need $155,750. This money will be phased over two periods.

· The expansion of the plant should be completed by the end of the year. Therefore, the initial $120,550 should be available by 30 October 2018.

· The balance $35,200 will be used to finance T.V commercials, social media adverts and contact the key industrials players.

m. Investor equity.

For a 40% stake in Pure Drinks equity, the investor will have to invest $115,750. A projection on the initial investment shows that the investor's money will increase at a 79% rate. Moreover, his stake is guaranteed a cash return 14 times the original investment at the end of the 6th year in business.

INDUSTRIAL ANALYSIS AND TREND

The industry is expected to grow even further based on the strategic interventions that are being put in place by companies and the changes in technology which provide numerous opportunities to improve company engagement. The recent focus on health and nutritious products provide a new alternative that is critical and provide a stronger focus on important concepts, which help define a highly successful operational environment under which companies are considering transforming the industry through integration of disruptive strategies (Jagtap et al., 2018).

The Target Markets

The target market includes the primary and secondary consumers who form the basis of the company engagement. The non-alcoholic and beverage industry is market dependent, and thus a critical engagement in the market provide a strategic focus on important processes which are implemented and provide a greater understanding on the changes within the industry which are essential and provide a greater level of commitment. The company highly values its customers, and thus it is committed to ensuring that the needs of customers are engaged significantly. The focus on production of healthier products has created a unique engagement in the industry, which provides a strategic engagement under which it is possible to integrate better measures, which help in transforming the industry (Bayona-Saez et al., 2017).

The market is highly concentrated which means that there is need to integrate strategic measures that help in defining a greater level of engagement and commitment to the integration of better concepts that define a successful development within the company. Therefore, Pure drink has focused on defining the target market into two categories so that it can integrate better concepts which focus on diversifying the company engaged in the industry as well as the development of the company as a brand.

Primary Target Market

The primary target market is a strategic population that Pure Drink Company will consider in its marketing so that it can have a positive influence on their development. The integration of better elements defines strategic concepts, which help in improving the company presence within the industry. The primary target market will include individuals within the age of 15 and 40 who prefer healthy soft drinks. Individuals who have developed medical conditions that have been advised to use healthy drinks with less sugar and high nutrient content will also be included. The successful engagement of this population will ensure that the company is strategically engaged in the market where it would be possible to improve its operations and production. The demand for short health drinks has been increasing significantly, which define a greater understanding of important processes that help define a strong level of engagement and commitment within the company (Arnold & Quelch, 2008).

Secondary Target Market

The secondary target market will include all other individuals across different age groups with diverse preferences, which will help the company in meeting its needs. The level of development within the industry requires a strategic focus on the integration of better elements that help define a strategic understanding on key development measures that help in creating a highly successful environment under which it would be possible to achieve a high level of success within the industry. Thus, engagement of both primary and secondary target markets provides the company with a unique understanding of key changes that provide a better developmental environment.

Target Share

Pure Drink is focusing in integrating disruptive strategies in the industry to gain a higher level of presence considering that the company is providing highly differentiated products, which are focusing on the healthy and nutritious aspect t of soft drinks that is more than just enjoyment. The critical measures that the company is putting in place help identify important concepts, which define a greater understanding and evaluation on important concepts that define a successful focus on important processes that help define a successful organizational development.

Therefore, the targeted local market share in the first year of the company operation is 5%. This will substantially rise to 7.5% in the subsequent year and continue the growth of 2% in the years following. The strategic target market that the company has put in place presents a very strong operational context where it would be possible for the company to achieve higher growth within the industry. The fact that the company is producing highly differentiated products in the market offers a greater emphasis on important processes that help in creating a highly transformed industry engagement. The uniqueness in the market is based on the integration of important processes, which provide a strategic understanding of important concepts that define a strong engagement within the industry (Ronit & Jensen, 2014).

Market Trends

The current operational environment has been based on technological changes which provide a high level of operation as well as management which provide the company with a unique platform to meet the set organizational goals. The strategic engagement within the industry using highly sophisticated technology in the company products and operations will be strategic in creating a highly transformed setting where it is possible to manage the existing challenges within the industry (Bayona-Saez et al., 2017).

The focus on healthy and nutritious products has also been a major aspect of the industry. Companies are focusing on producing healthy soft drinks that will provide a greater understanding of key changes that provide a unique environment for better development. Pure Drink has focused on this aspect of the business, which provides a greater evaluation, and understanding of key changes among customer preferences. Flexibility is a critical concept that the company is considering improving its productivity. Thus, a higher understanding of the market provides the company with a highly transformed environment where it is possible to integrate successful measures that will help in defining a highly successful company development.

Profile of Competitors

Coca-Cola dominates the non-alcoholic and beverage industry. Pepsi has also had a strategic presence within the industry for a long time. Coca-Cola has a higher level of presence within the industry based on its strategic market and distribution strategy has provided a strong level of commitment and understanding on the underlying measures, which define a stronger evaluation on important processes that define a highly successful organizational development. These companies form the main competitors, and Pure Drink will be focusing on defining a highly successful engagement under which it would be possible to achieve a higher level of organizational success.

The unique taste of the company products has made it difficult for competitors to develop products that are closer in quality of the products. Important concepts that are evaluated in this case provide a strategic understanding of important processes will provide a greater understanding of important processes, which help maintain a high level of competitive advantage within the market. However, the market has been increasing, Coca-Cola and Pepsi have not fully exhausted the market, meaning that new companies are getting space to improve and develop a highly successful market development. Minute Maid brand has received a greater reception in the industry showing that there is room for improvement under which it would be possible to integrate successful concepts that can help improve the company productivity (Ronit & Jensen, 2014).

Competitive Advantage

Pure Drink has a unique engagement in the market considering the products that the company is offering in the market. A strategic engagement in the market based on unique entry strategies and the health soft drinks provide the company with a better platform where it is possible to integrate strategic concepts, which help in creating a highly transformed understanding on important processes that are integrated within the industry to help improve company performance. The segmentation of the target market offers a unique focus where it will be easy for the company to outline strategic concepts, which help in defining a strong operational environment. The integration of better elements that define a successful management help define key measures that help in defining a successful organizational development. The company will also focus on its management to spearhead its development within the industry through unique marketing strategies that help in creating a highly diverse engagement (Ronit & Jensen, 2014).

Benefits to clients

We advise our clients to expect high quality, healthy products focusing on improving the well-being of our clients. The unique integration of important concepts within the company operation will be essential in creating a highly transformed market environment. The company is considering creating a better understanding of important processes, which help define strategic measures that are essential in managing the needs of our customers. The strategic engagement within the industry provides a unique understanding of key concepts that will ensure that there are a greater commitment and understanding of strategic concepts, which solve the current customer needs in the market.

MARKETING PLAN AND SALES STRATEGY

Marketing objectives

The marketing objective outline important concepts that are essential in improving organizational performance. The marketing objectives for Pure Drink Company will focus on improving the company presence in the market as well as increasing customer satisfaction based on high-quality products and service.

a. To improve company presence within the industry

b. Successfully engage the target market

c. Understand the changing customer preferences and needs

d. Improving the company market share.

Marketing strategies

Pure Drink Company has a unique engagement within the market considering a greater understanding on the diverse target market; that there is need to ensure that the company provides a strong level of commitment under which it is possible to integrate better concepts that help define a strategic understanding on market commitment. The company will integrate both modern and traditional techniques to ensure that the company remains strategically engaged within the industry where it would be able to achieve the set goals (Solomon et al., 2017). The company will consider print media as well as advertisements in television ads, and will provide a unique engagement for better organizational success. The modern technology will include social media and through online ads.

Price

The company will produce its products in different quantities although the price will range from $3 and $10 considering the additional input of healthy value that the products have on individual health and general wellbeing. Thus, the pricing strategy will be flexible to accommodate different customers considering the different purchasing power.

Distribution

The company will contract local transportation company to facilitate the distribution process and ensure that there is no shortage in the market while maintaining high-quality service delivery.

Promotion

Pure Drink company will be strategically engaged and provide a greater understanding of the needs of customers. Therefore, the integration of different processes within the company development will be dependent on the need to improve customer satisfaction.

OPERATION PLAN

Production setting

Pure Drink has integrated a unique production setting which has integrated highly innovative technologies that aim at creating a highly transformed operational setting. The development of the production plant is based on the current product design, which are very easy to manage.

Production

Pure Drink Company will focus its production strategy on lean manufacturing, which will provide a strategic understanding of important processes providing a unique understanding of better concepts, improve efficiency, and reduce waste while managing costs.

Sales

The company will incorporate different sales approaches to maximize its presence within the industry while also taking into consideration important measures that will improve the sales. The company will adopt online sales through its website that will link with the distribution to facilitate delivery. The company warehouse will also offer a sales point where retailers will be able to get the products. Pure Drink will focus on a strategic supply chain to manage the distribution and presence of the company products in the market (Jagtap et al., 2018).

STRATEGIC POSITION & RISK ASSESSMENT

The strategic position of the pure drink limited

We shall apply the SWOT analysis in determining the strategic position of this company and the differentiation of its products:

Strengths

· Strong branding of the company’s products.

· Health-related products

· Large marketing and distribution network of major market decision makers.

· New implementation of product packaging, which will consider the consumer’s choice and preference.

· The present research and development on how to improve the quality of our products.

Weaknesses

· Weak company brand name in the market as compared to its competitors.

· The company has low production capacity due to its size.

· The cost of maintaining the plant is very expensive.

Opportunities

· Few health-related soft drink companies in the market.

· The demand for healthy foods is currently the greatest concern of customers to meet their diverse needs.

· The technological advancement in the design of the production plant will enable the organization to increase its efficiency and reduce the costs of production as well as the capacity of production in the future.

Threats

· Takeover threats by the giants in the non-alcoholic beverage industry like Pepsi and the well-established Coca-Cola.

· There is a demand for new products in the market for soft drinks, which is still a challenge to our company.

· There is a need for the addition of large margins to our products by some of the retailers in the non-alcoholic beverage industry.

Differentiation

Differentiation strategy refers to the organization’s attempt to embrace diversity in the market as compared to its competitors by adding something unique to its production equation to offer unique value to its consumers. There also various techniques of differentiating your products depending on the industry in which the company is operating. Differentiation for the Pure drinks is attained through the perceived health component of its products, which is not familiar with most of its rivals in the market. It gives the company a sense of diversification in the soft-drink industry. The company is also using its product packaging as a way of strengthening its brand name.

Risk Assessments

Pure drink is a place with high level of commitment in protecting the health and the comfort of our clients; therefore, we keenly take into consideration all the hygienic components of health risk pertinent in the production of the consumables. This organization has the understanding of the concerns of high carbonation in the soft drinks that pose serious health risks to the consumers (Briggs et al. 2017). In the recent past, diseases like diabetes have been associated with highly carbonated soft drinks and these are our primary concerns too. We are making tremendous efforts in ensuring that the risks related to the highly carbonated drinks are controlled to the lowest level possible to help benefit the customers. Additionally, we are striving to introduce the zero sugar drinks for the vulnerable groups of customers within our market base (Briggs et al. 2017).

Pure drinks have recognized the recent concerns of clients over the inclusion of benzoic acid in most of the soft drinks, added as an antimicrobial additive for several years and expose customers to serious health conditions like nausea, body weakness, headaches, irritation and burning of the esophagus. Therefore, it is essential for Pure drinks company to carry out a serious risk assessment eliminate the adverse impacts of its drinks to consumers as well as reducing the litigation chances from the disgruntle individuals which may include the compensation of considerable legal costs for the organization (Malysheva et al. 2016). In the mitigation process, the management intent to conduct evaluations on the effects of each and every material used in our manufacturing and production process while understanding the significant health effects of the interactions between these materials together with the chemicals. Including various vitamins and health materials in the drinks is the primary consideration and among the benefits of consuming the organization's products in the market.

ETHICS AND SOCIAL RESPONSIBILITY

Pure drink limited embraces the requirements in the social responsibility in enhancing the reputation and relation between the company and the society. The social responsibility acts as an incentive to the potential clients in the surrounding community to engage in this process with the organization (Douglas et al. 2018). The practice not only creates a good blood between the company and the society, but the organization’s products also receive more attention from the customers, thus enabling the sales revenue of the company to improve (Grayson & Hodges, 2017). Some of the services the pure drink company undertakes to the society include:

· Provision of free healthy beverages to various healthcare facilities across the region, which should not be less than 50,000 units every year.

· Conduct sensitization programs within the community regarding health and environmental conservation measures.

· Offering sponsorship to social events where members of the community can come and socialize while enjoying some of the company’s products and facilities at discounted prices on all products.

· Provide college and University scholarships to at least ten bright students from the underprivileged families within the community in which the company operates on an annual basis. Company will also offer internship opportunities for these students at the Pure Drink Limited.

· As a concerned Company, Pure Drinks will look for a legal team to advise it on the existing and the new developments in the legislation of the non-alcoholic beverages market to enable the organization to comply and adapt with the transformations in the Industry. Also, we intend to regulate the following risks:

Environmental Degradation from the Disposal of the Plant Wastes and Emission of the Greenhouse Gases from the Manufacturing Plant

The company is planning to install the best water filtration procedure in the plant to ensure that the water discharged from the plant into the river systems are clean and chemical free from causing biohazardous impacts on the river’s ecosystem. We also believe that the installation of the air filtration system will help in filtering heavy gas particles from the plant against mixing with the atmospheric gases (Malysheva et al. 2016).

Health and safety of workers

The production plant design will ensure that workers are not exposing to harsh and dangerous work conditions. We provide our employees and visitors with safety garments in the bid of ensuring that they are exposed to a conducive work environment without any exposure to the chemicals used in the production of the non-alcoholic drinks. We ensure that our employees do not use excessive force in handling their tasks (Malysheva et al. 2016). The company incorporates the high use of mechanization in most of its processes. The materials are handled using the forklifts and containers that are packed into pallets by the automated palletizers. The major hazards concerns include the engines and machines in motion as well as the objects falling overhead, noise, forklift, and maintenance.

References

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