Business Plan Financials

Taste of Earth

Part 1 - Complete

Taste of Earth

Overview of the Non-Alcoholic Beverage Company

Taste of Earth is a family owned business, established in 2010. Due to the limited number of healthy beverages that are currently availed in the market, the Taste of Earth Company decided to engage in the development of natural and healthy drinks that are alternative to the high-sugar additive drinks that are not healthy. The name arises from the need to develop the best organic beverage which will derive from natural fruits and plants which grow from the earth. The company’s mission statement is to detoxify and give the body quality nutrients needed while cleansing cells and vital organs. Our goal is to re-train the body to crave healthier foods and never diet again.

Trends in the Non-Alcoholic Beverage Industry

Since its existence, the company has fared well compared to the current trends both the retail market of beverages and foods. Taste of Earth Company can justify their approach towards the non-alcoholic drinks since the company directs their activities towards promoting healthy habits of eating, embracing the purity of foods and concerns of the healthy meals, taking organic drinks and having a health-conscious practice for the benefit of the community. According to Kotlyar, and Karakowsky, (2007), despite the higher price of the non-alcoholic beverages in the market as compared to the sugar-counterparts, the majority of the people in the market are shifting to using these organic drinks due to their health benefits. Regarding future growth, the following is the projected four-year plan for Taste of Earth Company for growth:

TASTE OF EARTH COMPANY FOUR YEAR PLAN
2017	Taste of Earth Company is expected to surpass the previous sales from the year 2016 by 12%. Consecutively, more full-time workers will be hired by the company to increase production.
2018	Taste of Earth Company is expected to increase the sales with an additional 13% compared to those of 2017. The approach is aimed at developing a route driver with the standard rate of $18.25 per hour, with the consumer index regarding the cost of living increases with a margin of 1.45%.
2019	Taste of Earth Company is expected to expand its operations to include their sales in various regions while distributing the products to an additional five new markets for groceries. The revenue is expected to increase with about 8% owing to the increased costs associated with the hiring of other employees and the transportation costs.
2020	Taste of Earth Company is expected to have at least 100 employees who will be working directly with the marketing and sales department. It is like ly that the production will increase, and the storage space will also be expanded to accommodate the products produced.

Business Model

The most appropriate business strategy to engage in is the use of business models. Developing a business model for the non-alcoholic beverage business would be among the critical vital aspect to ensure the product stands out from the other beverages on the market. The design of the bottles for the drink will be differentiated with the specific model regarding the material to use, the color, and the branding of the same. The bottles will be labeled with the company name for easy identification, and each of them will have a specific color depending on the flavor of the drink. Through this strategy, the business will be readily distinguished, and competition for the same will be higher (Peter,  & Olson, 2010).

Distribution Channel

The environment for distributing the non-alcoholic beverages is challenging owing to the many parties involved in the process. The process will include the coordination of activities with the farms and growers of farm produce such as fruits and vegetables used in the production of the non-alcoholic organic drinks while collaborating with the workers, the packaging process, distribution and the associated regulations. The produced natural beverages will be packaged and stored in the warehouse awaiting the delivery be done to specific regions. After the packaging, based on the orders received, the delivery drivers will pack the requested number of products and travel with the same to the store asking the produce and stock the same. From the local shops, the organic drinks will reach the intended customers and hence sell of the same can be done.

Three Types of Risks Expected

One of the possible risks involved with the Non-Alcoholic beverages is the compliance with the regulatory body regarding food, beverages, and drug administration standards. It is imperative that the company ensures the produced organic drinks meet the criteria set by the state. As such, the production process will need to be observed at all times and hence the increase in expenses incurred in the production process (Price Differences).

Another risk that is paramount is the challenge of disclosure and privacy. To ensure proper competition in the market, Taste of Earth Company will have to assure the various production methods, ingredients and strategies are kept the secret to have a competitive edge. However, the firm will face the risk of the same being disclosed to the public and competitors, hence being a risk to the company (Abrams, 2014).

The third risk is environmental sustainability. Since the production of the organic drinks will result in the production of various wastes that must be directed out. Conforming to the regulations concerning the environmental sustainability will be a significant risk that may affect the business and may lead to the closure of the same.

SWOT Analysis for the Company

STRENGTHS	WEAKNESSES
· The business is health-conscious and assists in improving the health status of the consumers. · The Company has excellent market potential · The strategy to distribute its product is efficient and convenient. · Innovation is expected with the high number of skilled workers. · The company is financially stable and benefits from high levels of profit margins.	· There is a chance of less experience regarding management as opposed to the massive companies that have been in the industry for long. · Consumers may be unaware of the organic drinks in the market · High cost of operation · High dependency on fruits and vegetable supplies for the drink production.
OPPORTUNITIES	THREATS
· There is a chance to increase the sales of the company. · The company can engage in the broader operation to advocate for health benefits for the customers. · There is an opportunity to launch their drinks globally.	· High chance of entry into the market · Competition is high from the market leaders such as Pepsi and Nestle.

References

Abrams, R. (2014). Successful Business Plan: Secrets & Strategies (6th Ed.). Palo Alto, CA: Planning Shop.

Kotlyar, I., & Karakowsky, L. (2007). Falling Over Ourselves to Follow the Leader Conceptualizing Connections Between Transformational Leader Behaviors and Dysfunctional Team Conflict. Doi: 10.1177/1071791907304285

Peter, J. P., & Olson, J. C. (2010). Consumer behavior & marketing strategy (9th Ed.). New York: McGraw-Hill Irwin.

Price Differences: Organic Versus Non-Organic; Store Versus Farmers’ Market. (n.d.).

Retrieved from http://mofga.org/Publications/MaineOrganicFarmerGardener/Fall2011/PriceDifferences/tabid/1966/Default.aspx

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