Business Plan

Running Head: Business plan draft 1

BUSINESS PLAN DRAFT 9

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).

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

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.

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.

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.

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.

Individuals refraining from liquor (for social, religious, individual, or situational reasons), individuals who don't lean toward the essence of liquor (yet need something enhanced or socially proper to the setting of satisfaction), and individuals who suck at perusing marks and get deceived.

Non-hard drink is presumably more for the general population that know/like/have attempted brew than individuals who have never had lager (or maybe wine or spirits, either) that need to attempt another drink. Definitely, a few people attempt non-jazzed up brew first, or rather than mixed beverages, however "non-hard drink" endeavors to profit by the desires for "fermented drink", which are mingled and furthermore in view of individual experience.

There has a tendency to be less assortment, less limit, and less specialty craftsmanship going into the non-jazzed up lager industry/creation, so I'd say the achievement is more in regards to taking advantage of conceivably mixed up suppositions or having individuals over a barrel in prohibitive situations

The worldwide non-mixed drinks advertise records a CAGR of about 5% from 2018 from 2023. It is evaluated to produce an income approximately to about 1189.10 billion USD out of 2023. The locale of Asia Pacific is showing the most noteworthy development among every single other district, inferable from the expanded accessibility of bundled cola drink based items in the remote areas. The inventive showcasing methodologies being presented by real sellers is likewise driving the market development

Wellbeing and health mindfulness is a pattern which has essentially affected the nourishment and refreshment industry as of late. Not exclusively does the expanded spotlight on wellbeing and health cause shoppers to settle on substitution decisions (supplanting "terrible for-you" refreshments with "bravo/sound" decisions), yet it additionally makes new buying events through safeguard/utilitarian drinks and dinner substitutions.

Shoppers are continuously hoping to beverages to accept new parts in their weight control designs and prosperity plans. Drinkable refreshments and breakfasts as tidbits are powered by enthusiasm of buyers to sustenance what's more; execution drinks that go about as supper substitutions and bite that are faultless. Non-alcoholic Industry pioneers should foresee that purchasers in 2018 will ask for drinks that are of enhanced quality and creative, despite whether for refreshment, satiety, essentialness, resistance support, tranquilizer, glucose organization, or a vast gathering of other useful advantages currently connected with these multifunctional control drinks.

The worldwide vitality and games drinks advertise is required to achieve 95.52 billion USD by 2023 for a CAGR 5 % over the conjecture time frame. The guarantee of a helpful, in hurry juiced refreshment, alongside more flavor decisions and common fixings, keeps on driving the caffeinated drinks showcase. Shoppers utilize sports beverages to recharge water and electrolytes lost through perspiring after movement. Games drinks frequently contain starches as sugar, and in addition electrolytes and minerals and some of the time protein, vitamins or caffeine. They come in various flavors. These drinks are significantly devoured by competitors as this assistance in renewing vitality.

Crisp natural product flavors, for example, kiwi, tropical foods grown from the ground are tending to customers' present flavor inclinations. Red Bull has tended to these and other flavor slants through its Edition lineup and keep on leaving a blemish on the classification. The conventional target showcase for sports drinks has been dynamic youthful grown-up guys, who assume that diversions drinks give them an upper hand. Right finished the latest five years have sports drinks gone up against a broader spotlight on that consolidates women and recreational contenders. With this information in mind, we will as a company be able to locally penetrate into the market by checking unto the weaknesses of our competitors.

Non-mixed beverages advertise request is relied upon to expand by expanding extra cash and changing ways of life of the purchasers. Furthermore, rising temperatures because of a worldwide temperature alteration are probably going to help advertise development. In any case, expanding wellbeing mindfulness, particularly with respect to heftiness, among the buyers is foreseen to go about being the important limiting element concerning the market. In any case, stoutness issue is being tended to by the presentation of eating regimen with drinks that do not have sugar at all. Fluctuating client necessities meanwhile representing a test for the makers, is probably going to show the non-mixed beverages advertise with adequate development chances of presenting new item variations and flavors in the up and coming years. Market for non-mixed beverages is driven by neighborhood customer tastes and socioeconomics, enabling littler players to take advantage of the piece of the pie by taking into account nearby tastes and keeping focused costs

Non-mixed beverages showcase is packed in nature with real piece of the overall industry being held by a few organizations. Enter players in the non-mixed beverages showcase incorporate he Coca-Cola drinks, Pepsi as well as Nestle drinks.

With the above top leaders in the market, then market penetration is not easy. In our strategy, we plan to deploy a very competent team that will be overseeing so many areas so that we are successful. The team shall be tasked with responsibilities of customer satisfaction and the one that meet the demands that are not met by the competitors. This way we shall achieve our objective.

These forces choose the structure of the industry and the level of conflict in that industry. The more grounded focused powers in the business are, the less beneficial it is. An industry with low obstacles to enter, having couple of purchasers and providers yet many substitute things and contenders will be viewed as to an awesome degree compelling and in this manner, not very engaging as a result of its low benefit. The non-beverage industry being a very crowded market, the Porters Five forces are very vital in establishing our name. The five forces are threats to enter the market, the bargaining powers of the buyers, the rivalry that exist in the industry, the bargaining powers of the suppliers as well as the threats posed by the substitutes. With this information, I will get the competitive advantage in the sense that the suppliers shall give us the products at a lower price which I will use to reap back the profits and really boost our marketing and advertising. The threats of course come from the giants in the market which can only be overcome by finding out from the customers what they additionally require so that we bridge that gap.

In order to hit the ground running, we plan to employ the following online marketing tactics that shall deliver results at the end of the day. We will use the publishing of websites, establishment of the presence of brands, the email campaigns which is very effective in engaging customers as well as creating of digital ambassadors

F(x), like a soft drink industry, it should meet some certain points to fit in a competitive environment across the world. It should decide to build global brands through manufacturing soft-drink concentrate and selling it in a syrup form to bottlers throughout the world. Charging premium prices for the syrup and investing part of the proceeds into advertising and marketing to establish and sustain brand awareness would also boost in the growth of F(x) as a business. The signing of exclusive agreements that prohibits the bottlers responsible for producing and distributing the drink with competitive brands should be met thus huge profits for F(x). The company will also manufacture and bottle a low-cost drink and sell it directly to major retail establishments as a private-label ‘' house-brand''. The company should also use no money in advertising thus taking advantages of the efficient distribution system of the national retailer hence rapid growth of F(x) due to its well-known products.

F(x) should also employ qualified managers who must be able to select a business-level strategy to give them a competitive advantage in a particular market industry through choosing the basic ways of increasing the value of an organization’s product hence differentiating them to add value or lowering the costs of value creation. The managers should also choose between serving the whole market or serving just one segment. One of the following strategies must be chosen based on the choices given bellow

i. Low-Cost strategy; with low-cost strategy, managers try to gain a competitive advantage by focusing the energy of all the organization's cost down. They may sell a product less than their rivals.

ii. Differentiation Strategy; with a differentiation strategy, since the process of making unique and different products is expensive, managers should try to gain a competitive advantage by focusing all the energies of the organization's products from those of competitors.

iii. Focused Low-Cost and Focused Differentiation Strategy; since we are pursuing a focused low-cost strategy, we'll serve one or few segments of the market, and we aim to be the lowest –cost company serving the segment.

For F(x) to meet the corporate-level strategy which is an action that determines the industry and country that the company invests its resources I achieving its mission and goals, the managers should actively seek new opportunities to use the organizational resource to satisfy customer needs. Some of the managers should also help their organization in responding threats due to changing in the task or environment.

F(x) will be producing the beauty drink commercially. We have to rent the plants and machines. We think that this should affect the social society and environment. We try to take responsibility in many ways. For instance, we try to provide the knowledge about recycling and reducing the non-biodegradable things such as the bottle of F(x). Moreover, the producing process absolutely releases the pollution that effects the people's life. We are planning to raise the awareness of employees at all levels to conserve and preserve the environment. We also think about the energy conservation plan. Also, we realize the importance of the community and society by providing the foundation for education for the youth. We will try encouraging the youth to take care and maintain the natural resources.