Assignment 4: Presentation

Business Plan

Student’s Name

Institution’s Name

23rd February 2019

Business Plan

Introduction

In an environment where monopoly is no longer a possibility, businesses have to rely on aspects like brand strength and image to survive and grow. Branding allows a product to not only stand out but remain memorable to the customer. However, successful branding entails tailoring the products attributes to the targeted customers’ needs and preferences and thus it is essential for the organization to devise an effective marketing strategy to identify and tailor the product to their preferences. Proper marketing enables the customer to identify the features in a product that make it unique and more preferable compared to what is offered by the competitor. Marketing drives sales which enables the firm to meet the bottom line that is profits. Whereas marketing plan encompasses strategies meant to identify and reach potential, sales plan are tactic that a business employs to sell the product to the customers. The two processes should be aligned to ensure efficiency which translates to large profit margins. This paper provides Twilight’s Beverage Inc.’s business plan.

Target Market

Tropical Max is a non-alcoholic beverage made from natural fruits. The drink is a mixture of fruits and, water to achieve a uniquely refreshing taste without artificial sweeteners. The company aims to maintain the natural aspect of the product by using packages that preserve the product’s characteristic without the risk of polluting the environment. Twilight Company intends to increase the shelf-life of the product by using naturally occurring preservatives like sorbates and benzoates. Lastly, the package will have all the vital information like the types of fruits and herbs used and expiry date.

Based on the provided information, it is apparent that Tropical Max will target adults from the middle and upper economic clusters who are health and environmental-conscious. Given the rising cases of health complications related to overweight/obesity in the US, more and more people are shifting towards healthier food options. For this reason, Tropical Max will be sold in densely populated areas. Since the product is being introduced into the market for the first time, the targeted market will be relatively small. The segment’s behavior will entail aspects like consciousness towards one’s health as well as the dire need to conserve the environment. A certain level of skepticism is expected in the first few months because most customers will be first-time buyers or ‘softcore locals’ with the potential to become ‘hardcore loyal.’ These customers are ambitious, self-driven and, determined to make a difference in the community. By purchasing a natural drink, customers can get benefits like refreshment, good taste and, the satisfaction that come with improved health and environment.

Company’s Market Competition

As mentioned before, the business environment is highly competitive. Tropical Max will be competing with brands like Uncle’s Matt Organics and Suija Juice among others. The two brands have been around for a while giving them an added advantage over Tropical Max. For this reason, Tropical Max will have to rely on product differentiation by going beyond offering juices from one fruit. Instead, Tropical Max will provide a mixture of various foods and herbs to create an exquisite taste without added sugars. Tropical Max will target an average to high-income earners. Whereas these features aim to meet aspects that often influence consumers’ preference, competitor’s brands like Uncles Matt and Suija Juices have attained these features, and thus Tropical Max should strive to stand out by identifying internal strengths that can be used to give the brand an added advantage over its competitors.

A close look at Uncle’s Matt Organics and Suija juices reveal that they have common strengths with Tropical Max. For instance, both brands are natural, and they come in different flavors with significant health benefits. Moreover, Uncle’s Matt Organic is a well-known brand in the US. Based on these views, Tropical Max can differentiate its product by setting prices close to uncle’s Matt and Suija Juices to create the perception that its quality is as good as that of the competitor’s. However, Tropical Max will opt for packaging that is not only safe but also environmental friendly.

Ethics and Social Responsibility

Like any other business, Twilight Organic Beverage Inc. intends to use the available resources to maximize its profit margin. However, the company recognizes the essence of social responsibility to its image and reputation. As such, Twilight Organic Beverage Inc. will commit to generating reasonable financial returns while focusing on environmental conservation and community development. The company is governed by the concept that recognizes the environment and society as integral elements of the business operation. In essence, the environment is a source of Twilight’s raw materials while the community serves as the market for the end-product.

Promoting Healthy Living

Given the association of the company with the natural environment and community, social responsibility will be part of the company’s sustainable growth called ‘We all Profit.’ The main idea behind Tropical Max is providing nutritious refreshments to combat the rising trends of overweight and obesity. For this reason, the ‘We all Profit’ campaign will address three aspects; healthy living, economic development and, environmental conservation. Twilight recognizes the fact that society’s wellbeing is interwoven with the company’s survival and performance in the short and long-term. For this reason, Twilight aims to offer consumers with healthy products that is a blend of fruits without added sugars and preservatives. Other than the product, the firm intends to use its policies to inspire people to make nutritious choices while maintaining healthy lives. Twilight can merge its marketing campaigns with concepts governing healthy living. For instance, all Tropical Max promotions will be formulated to advance the notion that all admirable traits like confidence, determination and, boldness are associated with good health which is attained through healthy eating and active lifestyle.

Twilight’s healthy living campaigns aim to establish a healthy lifestyle from a young age. Hence the company will organize fun activities that will teach and encourage youngsters to make informed nutritious choices. One such activity includes sponsoring sporting activities where students will be encouraged to increase the number of hours in which they spend outdoors playing. Additionally, children will be challenged to reduce the time they spend watching TV or playing video games. Instead, they can use the time helping their parents in the home garden or doing any other activity that involves physical exercise. Collectively, these efforts resonate with the firm’s slogan ‘We all profit’ by promoting Twilight’s selling point while contributing to the community’s effort to curb the overweight and obesity pandemic. Tropical Max will benefit both the company and community by expanding the bottom line and healthy living respectively. Twilight operates on the notion that a successful business aligns its operations with the market’s needs and preferences. Therefore, the firm intends to improve its healthy living campaigns overtime to ensure that all the involved parties attain maximum benefits.

Economic development

The value and effort directed towards community development boost the organization’s wellbeing by establishing a positive reputation that serves as the basis of brand identity and equity. Twilight Beverages will contribute to local economic growth by creating employment opportunities for local people. Despite the benefits that can accrue from offshoring and outsourcing some operational services, Twilight intends to maintain all production activities in local regions. Such a tactic will minimize overall transportation and management overhead costs offsetting the high operating expenses. The outcome would be the creation of employment opportunities for residents who can work in various sections depending on their qualifications thus reducing the overall unemployment rate.

Moreover, localizing production will provide local small and large-scale farmers with an all-year-round market. Note that Twilight’s success depends on the timely availability of all the raw materials. For this reason, the company has placed a plan in place to ensure good payment practice to its suppliers as a way of forging a good company/supplier relationship. For example, Twilight intends to have defined terms of payment with all its suppliers right from the onset of the business relation. The terms provide a framework that will govern the association between the firm and suppliers meaning that it is essential to have a clause that specifies the system for resolving payment disputes. Whereas a framework establishes the necessary sense of security, the company will maintain some level of flexibility to meet different payment terms agreed with suppliers. Lastly, Twilight intends to uphold its end of the deal by paying in time and linking suppliers with staff members who can handle any complications conveniently.

By localizing operations and creating a positive relationship with suppliers, Twilight will manage to establish a good reputation which translates to strong brand identity and equity. Prompt payment of the suppliers enhances their confidence towards the business allowing the firm to negotiate better deals. Furthermore, a good company/supplier relationship serves as an indicator of the Twilight’s economic wellbeing that positively impacts the organization’s credit rating. The outcome will be a smooth supply chain as well as increased credit assess. All these factors affect the workforce’s motivation by influencing the day to day operations. A positive relationship with suppliers allows smooth operations coupled with job security which in turn influences employees’ morale translating into high productivity.

Upholding Ethical Conduct

In business, ethics can be described as moral principles that guide decisions and operations. Alternatively, ethics could be defined as determining actions that are right and wrong. In some cases, the difference between right and wrong is noticeable. However, there are instances where the conditions of the company’s business environment render ethical practice ‘secondary.’ For instance, stiff competition might probe the management to favor hiring personnel who are perceived as beneficial while denying other qualified people in the same positions. Twilight understands that upholding ethical standards result in a significant benefit in the long-run. As such, the organization intends to abide by the laws of every jurisdiction in which it will uphold. In essence, Twilight management intend to align all operations to the specified production laws. Some of these legalities include waste management and fairness in hiring employees.

Twilight recognizes the critical role that human resource plays in the organization. For this reason, the company has formulated policies directed towards ensuring that all employees are treated with utmost respect and honesty. The first aspect of the policy will focus on hiring and promotion exercises. All employees will be hired and promoted based on their level of qualification and experience in a specified position. Such a tactic will prevent a situation where some employees feel that some of their colleagues are being favored as it threatens teamwork and inspiration. In other words, specifying that hiring and promotions are based on merits eliminate the speculations of unfair treatment that could be an interpretation of denial of fair chances to advance through the ranks. Additionally, Twilight intends to involve employees in drafting reward models which will be used to recognize and award accomplishment across the hierarchical structure. These efforts aim to create a conducive work environment that makes employees feel like part of the team. The outcome would be increased motivation among employees which translate into increased productivity.

Impact of Twilight’s Operation to the Environment

Since Twilights operations depend on the availability of fruits and fresh water, climatic changes climatic changes will harm the company. First, flooding or extended dry seasons might affect yields which will translate to scarce and thus costly raw materials (Kordylas, 2010). Moreover, the rising temperatures will affect the availability of fresh water supply. The two possibilities possess a significant danger to the company’s supply chain which will threaten the company’s normal operations. The fact that Twilight’s operations are significantly influenced by environmental conditions places conservation at the center of the firm’s operations. As such, Twilight intends to mitigate the downsides of its production on the environment by ensuring efficiency to minimize the amount of water use as well as energy.

Processing of non-alcoholic beverages like Tropical Max consumes substantial energy which contributes to the carbon footprint. Once the accumulated fruit wastes make it out of the company, they pollute the environment. Twilight has formulated a tactic to minimize overall energy consumption as well as wastes. This strategy is centered on using waste to produce electricity. Twilight will invest in a medium-sized anaerobic digester and combustion engine that will be used to convert the waste into methane gas that will be used to run generators. In the first few months, capital might be problematic thus allowing small-scale application of biogas. The green energy is expected to supplement about a third of the company’s energy requirements within the first year. This figure will be increased over time to cut down on the overall cost of fuel while minimizing carbon emission.

Another negative environmental impact emanating from Twilight’s beverage production is consumption of significant amounts of water which places considerable strain on the essential resources that have become scarce throughout the globe. The company’s water conservation strategies are based on the water/energy nexus that specifies that efficiency in water usage minimizes overall energy consumption (Hardcastle, 2016). Given that fresh water has become overly scarce across the globe, manufacturing companies like Twilight have to compete for the essential resource with the community. Hence excessive use of water through inefficiency that leads to significant wastages can affect the firm’s image and reputation which will negatively affect sales and the profit margin. Twilight intends to avoid such an outcome by allocating funds to work with a water expert in the first year of operation. The expert will point out areas within the production process that could be altered to limit water wastage. In the meantime, Twilight has noted that whereas reducing water usage in the processing and cleaning areas might be challenging, efficient use of water could be attained in employee welfare spaces. For instance, low-flow fixtures and constriction nozzles will be used in employees’ welfare spaces. Furthermore, Twilight intends to identify the right cleaning solution. The next step in water conservation would be determining the right cleaning solution, water pressure, and temperature ratios to ease cleaning and reduce the overall amount of water used.

The goal of achieving water efficiency is progressive because the firm intends to act based on the collected data. During the early months of operation, tactics directed at minimizing water wastage will be applied in employee working spaces. Over time the company will have sufficient funding to employee processes like reverse osmosis to in the cleaning areas to reduce the overall amount of wastewater. As Schung (2016) explains water efficiency decreases the cost of wastewater treatment. Reverse osmosis is an optimal strategy for ensuring efficiency. Unfortunately, the process is expensive as it requires a significant amount of energy. For this reason, Twilight can expand the waste energy production process to fuel the reverse of osmosis. The outcome will be a reduced amount of wastes, water consumption and, energy which translate into a low cost of production.

Even though Twilight aims to minimize wastes by converting it into energy, the company might still contribute to environmental pollution through the kind of packaging used. The company will mitigate this problem by using glass bottle packaging that can be reused. Consumers will be able to return the empty bottle to the store at a fifty percent discount. This system makes every consumer be part of the environmental conservation effort. Note that the consumer will incur the cost of failing to reuse the bottle meaning that he/she will be getting less value for the spend money. However, once the bottle has been returned then the overall worth of the initial spending increases. By undertaking the presented efforts, Twilight would be reducing the negative impacts of its operation on the environment.

From the presented points, the ‘We all benefit’ campaign could be viewed as a strategy that manages Twilight’s intention to increase its bottom line with the society’s wellbeing and environment conservation. The company produces non-alcoholic beverages from local organic-grown fruits. It is thus offering the population a refreshing, healthy drink that can be enjoyed on any occasion. Since Twilight’s product, Tropical Max is a blend of fruits without any additives like artificial sweeteners and preservatives; the product serves as an effort to curb overweight and obesity problem in the US. Moreover, Twilight intends to curb its overall carbon and water footprint by employing strategies that will ensure efficiency. In summary, Twilight’s operations recognize the essence of the community and environment. For this reason, society and environment became central in the formulation of the company’s strategies.

Health Issues related to the Product

Preservatives

Tropical Max is a blend of fruits without any artificial sweeteners. This feature serves as a competitive edge for Tropical Max as leading non-alcoholic beverage companies like Coca-cola are under significant pressure to cut down on their sugar levels. However, this benefit can be offset by the fact that unlike other sweetened drinks, Tropical Max will have high concentrations of water and fruit minerals increasing microbial activities. Hence failure to add artificial additives would mean a short shelf-life that would be impractical for the company. According to Ristovska, Dimitrovska, & Najdenkoska (2012), the water activity in non-alcoholic drinks is significantly high creating a conducive environment for microbes. Drinks like coca cola and Pepsi have high sugar as well as acid content which inhibit microbial growth. However, Tropical Max is a blend of fruits and water without any artificial sweeteners. For this reason, the beverage might pose a significant health risk to consumers if the company fail to add additives that will preserve the taste and prevent the growth of dangerous microorganisms.

The preservative of choice for Twilight products are sorbates and benzoates. Sorbates forms Vitamin A and C occur naturally in fruits and vegetables. The preservative has been approved by the FDA and is available in stores across the country. Whereas Sorbates are effective preservatives against molds, bacteria and, yeasts they might not be effective in low PH. For this reason, Twilight might be forced to combine sorbates with benzoates to prevent possible fermentation and acidification that will ruin the taste of the product. Studies indicate that mixing Sodium Benzoate and Ascorbic Acid (Vitamin C) can result in a reaction that releases benzene which is a carcinogen (Dos Santos, Salgado, Torress, & Pereira, 2015). However, Benzene’s effects can only be felt after consuming a significant amount of the product. Therefore, the challenge that Twilight faces is accurately specifying how much of the drink could be deemed dangerous to one’s health. In the short-run, the company can use tactics like ‘do not consume more than two bottles of the product within 24 hours’. Note that this tactic might work, but it will raise speculation about the product’s safety which might affect the brand’s identity and equity. As such, Twilight intends to focus on research that will enable the firm to shift towards organic preservatives such as relying on natural Benzoic acids from fruits like cranberries and plums.

Abiding by the set food safety standards

The FDA, USDA and other international bodies like Global Food Safety Initiative (GFSI) and The Food Safety Modernization Act (FSMA) have set general standards to ensure that any product that reaches the consumer is safe. The requirements are meant to prevent contamination that results in foodborne ailments. Twilight’s processing model abides by all the set standards. For instance, the water used in processing is purified, and all employees maintain high standards of hygiene. Whereas these standards provide overall protection to prevent the possibility of food contamination and poisoning they might not be enough to provide the customer with the assurance that the product that he/she is partaking is organic. For this reason, Twilight’s agreement with all the suppliers involves a clause that specifies that all fruits delivered to the firm should be not only fresh and of high quality but also organic. The company has also employed experienced employees whose responsibility entails inspecting the raw material to ensure that any product that makes into the processing session is safe for human consumption.

Mitigation of Negative Issues related to the Company’s Product

Twilight is built on the principle of promoting good health across the population through healthy living that is nutritious food choices and an active lifestyle. However, the company is bound to face several challenges along the way that could be true or false. As mentioned before, Twilight is a progressive brand whose growth depends on the reviews offered by customers. Therefore, constructive criticism that can come in the form of complaints or suggestions will serve as the company’s blueprint to establish Twilight as a powerful brand.

Since Twilight is a food brand, most complaints will be about the health impact of the drink. Note that Twilight promises its consumers a refreshing and healthy beverage without any artificial sugars. Based on this view, consumers are likely to view Twilight’s products like Tropical Max as a blend of fruits that are safe to consume, but this notion can be countered by the fact that Tropical Max contains some level of preservatives. Note that preservatives are essential as they prevent food poisoning. At the same time, preservatives like Benzene have been categorized as carcinogens meaning that they can contribute to cancer. By looking at this case, it can be argued that shifting from sweetened to non-sweetened drinks could be trading off weight-related ailments like diabetes with cancer. Even though this view might not reflect the truth, some customers might make claims that Tropical Max negatively contributed to their conditions. Such claims might create opportunities for speculations that might impact the company’s reputation regardless of their basis. For this reason, Twilight aims to continuously explore research to clarify the impacts the used preservatives to offset any false claims.

Alternatively, Twilight might receive complaints related to the drink’s acidic levels which might affect people suffering from digestive disorders like hyperacidity. As the name suggests, Tropical Max is a blend of tropical fruits. Some of these fruits might have high acid levels which might not be optimal for people with certain digestive disorders. In this case, the company will specify all the fruits that have been used to allow customers to make informed decisions.

Lastly, the company might suffer a setback related to contamination that could cause food poisoning. Twilight will sample the product in different stages of the processing process to ensure that the end-product is safe for consumption. After a batch has been processed a sample will be selected randomly and retained in the company for the entire shelf-life. In case, the company receives a complaint about food poisoning; the sample will be used as a reference to determine the authenticity of the problem. If the case true the firm will establish a way of reclaiming the entire batch to prevent further harm.

Targeted Marketing

Even though Tropical Max is a healthy product, the used preservatives might not be optimal for children and pregnant or lactating women. For this reason, Twilight will explore target marketing to ensure that the promotions are tailored to the perceptions of the intended crowd. The company will attain this goal by exploring media channels that are frequently used by the targeted population. Such platforms include Facebook and Twitter as studies indicate that most people spend at least five hours on these platform weekly. Identifying an optimal social media platform serves as the first step towards targeted the organization's marketing campaign towards a specific population.

Twilight identifies itself as a company that supports the green movement and intends to use this feature as its competitive edge. For this reason, the company will employ short videos depicting the impact of industrialization on the environment and how every person can take part in resolving the issue of global warming. For instance, Twilight can post videos that incorporate important aspects like re-using packaging materials. Even though these adverts are meant to raise awareness they are not portrayed as aggressive. Instead, they allow the viewer to note how Twilight is contributing to environmental preservation by promoting recycling. Such an advert will appeal to people who are conscious about the environment and would like to be part of the green movement. Additionally, this advert convinces potential consumers that accommodating the inconveniences associated with returning the used bottle to the store to avoid extra charges is a necessary sacrifice to save the planet.

Since the targetted market is the affluent population, Twilight will craft the messages in a way that emphasizes the value that the customer will get out of the product. From a generalized perspective, most people belonging to the top social-economic class place significant value on aspects like health and appearance. In the West, being slender is considered optimal, and thus most people will go for products that are healthy but low in fat. For this reason, Twilight will focus on an advertisement that implies a possible connection between admirable traits like determination and confidence with healthy living that is promoted by a product such as Tropical Max.

Lastly, Twilight will explore platforms like Pinterest to post images of the final product in a way that tells the brand story. This undertaking is meant to promote Tropical Max as an exclusive drink meant for extraordinary people. For instance, the bottles will be tagged with a short message reflecting the company’s CRS slogan ‘We all benefit.’ This tag is meant to serve two purposes. First, it informs the potential customer that by partaking the drink he/she will be benefiting others as well. Second, the information on the tag is meant to arouse curiosity that will encourage the customer to seek additional information about the product and the company.

References

Dos Santos, V. P., Salgado, A. M., Torress, A. G., & Pereira, K. S. (2015). Benzene as a Chemical Hazard in Processed Foods. International Journal of Food Science. Retrieved from https://www.hindawi.com/journals/ijfs/2015/545640/

Hardcastle, J. L. (2016). Applications of Biotechnology to Fermented Foods: Report of an Ad Hoc Panel of the Board on Science and Technology for International Development. Environmental Leader.

Kordylas, J. M. (2010). 25Biotechnology for Production of Fruits, Wines, and Alcohol. Applications of Biotechnology to Fermented Foods: Report of an Ad Hoc Panel of the Board on Science and Technology for International Development., 139-145.