Operation, Technology, and Management Plan (with Financials)

August 5, 2019

Target Market

Consumption for organic products is constantly rising as people learn more on the benefits of carbonated non-alcoholic juice. Matunda Juice Company intends to capitalize on the increasing demand in the markets. The vast population of people in North America will be the primary market for the company. The company will provide its fresh juice products to smaller market segments in the startup months. However, the company will gradually enter the larger market segments. The company will sell its products to both small scale customers and large-scale customers.

There are numerous fruit vendors already dealing in fresh juice products. The vendors will serve as a ready market to the company’s fresh juice products. Also, majority of households consume fresh fruit on a daily basis and the company intends to supply the fresh fruit juice to the small-scale household consumers. The fresh juice products are designed to suit people of all ages, (Heyman & Abrams 2017). Fruit products have always been perfect for promoting health. In North America, the largest proportion of the population is aged between the age bracket of 19 years to 45 years. The company will focus much on attracting customers from this category of people.

Providing different type of fruits is favorable to both the male and female gender. However, some fruit products are more attractive to one gender and less attractive to the other gender. Matunda Juice Company will provide a range of products designed to capture the tastes and preferences of both male and female gender in the markets. The company will sell to all customers in the market regardless of education level. Also, pricing policy adopted for the fresh juice products will be one that suits the customer’s income and meets the company’s profit margins desired.

Competition in the Market

There are already many established enterprises offering non-alcoholic beverages in the markets. Some of the large companies like Coca cola and Pepsi have also ventured into the business of fresh juice. Other formidable competitors in the market include; Picana, Tropical fruit, and Gatorade sport drink. There are also numerous suppliers of tea and coffee beverages in the market such as Starbucks and Dunkin’s. However, very few of the companies present in the market produce their products with zero carbonation and zero chemicals. This provides a perfect opportunity for Matunda company to capitalize on. The society, is now more than ever, very interested in organic products that are not processed using chemicals, (Heyman & Abrams 2017).

Health has become a major concern in North America due to the increasing cases of lifestyle related illnesses. Much of the illnesses are said to emanate from the excessive consumption of processed food products. As society looks for options to migrate from processed foods, Matunda Juice Company offers a way out through its fresh fruit juices. To gain roots in the competitive markets, Matunda will introduce a range of fresh fruit juices that are not processed or carbonated. This will be a good way of horizontally differentiating the products to gain a competitive advantage, (McDONALD, 2016).

The company will also engage in marketing campaigns to promote awareness of the fresh fruit products in the market. The company intends to provide customers with an affordable quality product that will improve their welfare. Products delivered by the company will be of highest quality and in compliance with FDA standards. The company intends to partner with other producers of fresh fruit such as Luba. Pricing of the products will be strategically designed to increase the competitive advantage, (West, et.al., 2015). Also, the company will use unique packages to facilitate easy differentiation of products.

To increase competitive advantage and gain good grip of the market share, Matunda will aggressively engage in advertisements and promotions. To facilitate product differentiation and enhance identification of viable marketing vehicles, the company has formulated the five F’s strategy: Function, finances, freedom, feeling, and future, as follows.

Functions: The major goal of the company is to high quality fresh fruit juices that is 100% organic. Bettering the customers’ health is also a primary goal for the company. The fresh fruit juice produced by Matunda will serve as a dietary supplement to boost health

Finances: “Value for what is worth.” The pricing policy of the company will be based on consumer’s interests. Different volumes of juice will be packaged and offered to customers at different prices to ensure that persons of all economic classes can afford the juice.

Freedom: “You need it, we’ve got it.” The company’s fresh fruit juice products will be sold to our customers for 24 hours each day. Matunda will set up shop in various restaurants and cafes to enable our customers to access our products at ease. The company will also provide its products in stores across various towns to allow the freedom to choose.

Feeling: “We value our customers.” All company staff will receive training on effective customer relations. This will ensure that our customers are served well and accorded the respect they deserve.

Future: Matunda Juice Company intends to establish customers’ loyalty clubs which will be perfect for fostering good customer relations as we progress to the future.

Marketing Vehicles

The success of any brand is very much dependent on the level of marketing done. There are various channels which may be used as vehicles to facilitate advertisements and promotion of a brand in the market. Matunda Juice Company will mainly use the media to advertise its fresh fruit products. In recent days, digital platforms have gained so much influence on marketing strategies, (Perreault, 2018). Therefore, the company will focus on both digital and print media platforms.

Many households have a TV set and would thus be an easy vehicle to reach a multitude of people at one particular time. Matunda Juice Company will pay for commercials in five of the most popular TV stations as a strategy in increase brand awareness. The company will also pay to have its adverts carried on popular magazines especially those covering nutrition topics. Social media is widely used by people across the world, (Chaffey, D., & Smith, 2017). Matunda will advertise its products on Facebook and twitter with the aim of extending the volume of people reached.

Sponsoring events where a multitude of people has gathered is also a strategic way of advertising and promoting a brand. Matunda Juice Company will specifically sponsor one event in each month. T-shirts and caps branded with the company logo and name will be distributed for free at events. This will be very crucial in reaching a larger base of people and increasing brand awareness, (West, et.al., 2015). With all these marketing vehicles effectively used, Matunda is sure of an increase in its customer base and total sales for of the fresh juice products.

References

Chaffey, D., & Smith, P. R. (2017). Digital marketing excellence: planning, optimizing and integrating online marketing. Taylor & Francis.

Davcik, N. S., & Sharma, P. (2016). Marketing resources, performance, and competitive advantage: A review and future research directions. Journal of Business Research, 69(12), 5547-5552.

Heyman, M. B., & Abrams, S. A. (2017). Fruit juice in infants, children, and adolescents: current recommendations. Pediatrics, 139(6), e20170967.

McDONALD, M. A. L. C. O. L. M. (2016). Strategic marketing planning: theory and practice. In The marketing book (pp. 108-142). Routledge.

Perreault, W. D. (2018). Essentials of marketing. New York: Mc Graw Hill.

West, D. C., Ford, J., & Ibrahim, E. (2015). Strategic marketing: creating competitive advantage. Oxford University Press, USA.