Final Business Plan

Running Head: VIRGIN MARY BEVERAGE COMPANY 1

VIRGIN MARY BEVERAGE COMPANY

Business Plan

Chardae Sledge

Strayer University

BUS 599

Prof. Andrea Banto and Prof. Adrian Allen

February 20, 2019

Company Description and SWOT analysis

Virgin Mary Beverage Company is amongst the leading beverages companies found in major cities of the United States which exclusively supply the non-alcoholic drinks to most of the bars and restaurants in Atlanta, GA. The company was thought about in 2008 and came into existence in March 2018 and has grown with headquarters being based out of our home city in Atlanta centering in the downtown warehouse district. Content on sales and growth, the organization plans to expand the warehouse and the managers and workers. Since the company exclusively deals with a non-alcoholic drink named Virgin Mary, it was believed that incorporating the beverage’s name in company’s name would sell the brand well and indeed based on the return; the latter has been actualized. Virgin Mary is a non-alcoholic beverage which for a close to ten years now has been a favorite drink for many people (Hellmich, 2006). Its name affirms its non-alcoholic nature, and I believe together with the ingredients which we use to make it makes it be much loved by many. We will offer three different beverages consisting of Virgin Sprait, Virgin Vanda and Virgin Mary our most popular drink. Components used to make the popular drink includes; tomato juice, lemon juice, hot sauce, horseradish, celery salt, black pepper, and stick celery.

Mission Statement

Virgin Mary Beverage Company’s mission is to increase sales, market share and profit by providing its clients with only high-quality products which its customer’s desires through professional, information-based and quality of service. Our company’s mission of increasing sales is based on the dynamics which are associated with beverage business across the United States. Because of the level of competition associated with this sector of industry, our staff has been trained to always practice the required professional standards in their delivery of services to the company’s clients and to still provide our esteemed customers with the required quality of our products.

Trends in the Industry

Currently, the beverage industry is facing severe directions regarding what the majority of the customers and the business people desire to see and achieve. One trend which has been conspicuous is the dynamic change of consumer preferences. Just like in 2018, bold and exotic flavors, snacking, and health and wellness will still be at the forefront for consumer’s beverage preferences, and it is anticipated that it will be elevated more. Beverage safety and transparency will be the leading trend this year with most of the customers yearning for the protection of and health of what they drink or consume (PLUNKETT, 2018). Because of the increasing uncertainty with the rising brands of beverages, many clients will be very keen on the brand which they consume and this as a company we will have to prove to them that our brand is the leading category of non-alcoholic brands in America.

One reason as to why Virgin Mary Beverage Company will remain as our sole supply is based on the already available ingredients which are used for preparing it. Also, Virgin Mary drink has a unique name which makes it attract the attention of many people who adds up to its customers. Nevertheless, this brand of beverage has sweet aromas which easily lure people to purchase it making us meet our targets easily.

Strategic Position

Customer bonding will be the best strategic position for our company since it is the customers who will determine the progress of the company. The number of them we have the better, and this will only be achieved by developing a strong bond with them. To cement this, we will always put the welfare of the customer at the forefront. At all times their needs and desires will be addressed by our company, and through this, it will be more of a reality that we will cement our bond with them.

Distribution

For our product, we will always supply directly to restaurants and bars since we have all the modalities for undertaking the same. This will equally make us understand the views which our clients might have regarding our brands. Once the goods are supplied to the designated bars and restaurants, our final customers will find it easy to purchase them at their time of need.

Risks

The three significant risks which face our company includes; the rise of natural and organic beverage, the anti-sugar movement, and adding value to products. Many consumers are currently very keen on differentiating the natural and organic drinks with a majority moving toward the natural beverages (Raval, & Fichadia, 2007). Our company always stresses the use of natural products in making its Virgin Mary beverage’s, and we still won't need to prove the same to our clients. With many people currently gravitating towards sugarless drinks, our company always has stress on the use of natural sugar in less quantity to cater for all categories of persons. Because of the government restrictions, our brand of beverage contains ingredients which are all approved by the relevant government authorities and does not pose any health-related risks to our consumers.

SWOT Analysis

Strengths 1. Well trained staff 1. Easy access to ingredients	Weaknesses 1. Few employees who agree to work for long hours 1. High cost of productions
Opportunities 1. Increase in number of bars and restaurants in downtown Atlanta 1. Globalization	Threats 1. High levels of competitors 1. Trends which do occur in this industry

Strengths

Well trained staffs who undertake their duties with much professionalism thereby attracting more customers to our brands. With the staff and product knowledge it will be for consumers to grasp our brand and pave the way for or growth. Easy access to ingredients makes us have a higher production rate as compared to our competitors. In this day and age, it is hard to have fresh and real ingredients. With this our consumers will know that our products are fresh and real.

Weaknesses

Lack of an adequate number of employees who are willing to work extra hour has remained to be a significant setback for our company. With being a startup and the cost there is a shortage on employees being that the funds are not there. Growing the business there will eventually be more employees and managers. With the high cost of production, the company sometimes strain on its resources to fulfill the desires of our esteemed customers.

Opportunities

Increase in some bars and restaurants make us receive many orders thereby boosting our sales. With the influx of bars/clubs and restaurants in the downtown Atlanta area it leaves room for more opportunities. These can lead to doubling our business expected sales and current forecasted sales. With globalization, we intend to open other branches across the world eventually.

Threats

The existence of many companies which produce non-alcoholic drinks pose huge competition on us, and we treat the same as a threat and with the daily trends which do occur in the same industry, as a company we feel much threatened though we will fight for our share of the market.

Marketing Plan and Sales Strategy

Every business uses its mechanisms to control substantial market share in its area of operation. Having proper marketing plan and strategy dictates how successful the company can be as compared to other companies which operate in similar or the same category of items. Virgin Mary Company, is one of the leading non-alcoholic beverages companies in the Illinois States which is applying various marketing strategies and plans to outdo most of other leading beverages companies such as cola drinks companies. In surpassing our competitors, our company majors on its customers, competitors, the message, it gives to its clients and competent marketing vehicles for its promotions.

Target Market

Since Virgin Mary drink is one of the leading non-alcoholic beverages which are intruding into the beverages market, there are specific customers which our company always target. Our leading target group is the young adults ages 18-15 who are love visiting social places such as bars and restaurants since these are significant areas where we make our supplies to. Around downtown Atlanta, there are close to 5 million youths who reside in around the city. This number is boosted by the local universities and colleges which have their branches around the city. There income will be average around $12,000 to $30,000 yearly being they are college students and most will have part-time jobs and cater to African American and Whites being that they make up 92.4% of the demographics according to world population review. Our company looks onto this composition of the population and deduces that it can have a good share of the market since it equally operates on the slogan of love going by the name of our beverage drink which we produce. Interestingly, amongst the mature adults, there are other groups of people whom we equally target based on their association with bars and restaurants around the city. This group equally constitute close to 1.5 million people.

Market Competition

Because of the existence of any non-alcoholic beverage brands around Atlanta, it is factual that we do face stiff competition amongst from these groups. Nevertheless, there are some groups of beverages producers which we do not consider much as our strong challengers, though there is a few which give us run for our money. Our crucial competitors are the Coca-Cola Company and Cocktail beverages. These two companies are old companies around the city and have a substantial number of loyal clients who are difficult to the porch. Equally, these two companies have robust marketing tools over many other companies which makes them always to be a threat to upcoming beverage companies.

In competition, there is an excellent need for leaving no chances to your competitors, and this is what we intend to do. As a basis of outdoing both Coca-Cola and Cocktail beverage companies, there is a need for employing competent marketing tools which be more smarter than the ones which are used by other competitors. One way of doing this is through checking on the pricing, marketing styles and above all our relations with our employees, suppliers, and customers. Because the said two companies have various ways of outdoing other companies in the market, our company will also use marketing friendly techniques to outdo them. For instance, we have direct contact with most of our customers, and we will be flexible in our pricing to cater to the changing economic situations witnessed in the United States in general.

As a company, our marketing message is “The love for Virgin Mary”. This statement has made our product to be known by many people beyond the city limits. The statement marketing message has caused several people to love our brand and always yearn to have a taste of it, and this has made us penetrate deep into the market outdoing several of our competitors. The message is simple because everyone loves out products. Our 5 F’s which are used in the management of our company include; Focus which we focus on our consumers. Our main focus is the consumers and how they portray our products which is our goal and objective. Flavor which is the secret ingredients we use on our drinks. Consumers rely on taste of the product and what consumers think of the freshness and taste. Foresight that is our plan for the worst and flexibility that is how we plan for the changes and lastly, fun for our marketing styles and operations. We make everything fun and enjoyable to the consumers and also our employees. We pride ourselves on the retainment and also the retention of our consumer and employees.

Marketing Vehicles

Because marketing is one of the strategies of reaching potential clients, our company plans to use specific tools of marketing as a basis for building our product brand. Majorly we will use social media platform and TVs ads to market our brand. Our choice of social media platform (Facebook, Twitter) is based on the number of our target group who are members of these mainstreams. Most the youths are Facebook and Twitter addicts and using these platforms makes us reach the majority of our target very confidently. Equally, when using of TVs platform to advertise our brands will equally make us achieve some of our other clients who might be not much inclined in social media but do watch television. Using these two marketing vehicles makes us reach all our target group in equal measure.

Both Coca-Cola and Cocktail companies have used these platforms for marketing their brands and based on the returns; they have effectively realized a substantial number of customers. Coca-Cola for instance boost of significant followers on Twitter which seemingly adds up to the name of the clients in real-life. Therefore, I believe using these platforms will make our company to effectively gain much in the beverage market not only in Atlanta where we currently operate but also in other States in America.

Ethics and Social Responsibility Plan for Virgin Mary Company

Virgin Mary beverage company will be a responsible business that will aim at meeting highest standards of ethics and professionalism. The company’s ethics and social responsibility will fall under two categories which are compliance and proactiveness. In compliance part, the company will be committed to legal obligations and will be upfront in observation of community values. On proactiveness part, the company will aim at promotion of human rights, protection of the natural environment and community service.

Compliance

Will ensure respect of law, honoring its internal laid down policies, ensuring the company’s business operations are legitimate and ensuring open and transparent partnership and collaboration with other market players.

Business ethics

Virgin Mary company will conduct its business with integrity and respect to human rights. The firm aims at promotion of safety and fair dealings with other partners in the business. These include our fruit suppliers and distributors who will be selling our products. The firm will further have utmost respect to the consumer in terms of quick delivery in case of placed orders, quick response to consumers’ complaints or reviews, prior notification of consumers in case of any change pertaining to drinks and ensuring consumers get maximum satisfaction from our products. Further ethics such as anti-bribery and anti-corruption practices will be fully shunned by the company.

Creation of jobs

Virgin Mary company will aim at creating jobs to the surrounding community by employing workers from the local community. This will be in line with its policy of community development and will also ensure proper cohesion with the surrounding community. Further community support programs such as community investment and educational programs will be put in place. For instance, the firm may engage with non-profit organizations to promote economic developments which will sustain the local communities. Further community activities to be provided by the firm include provision of internship opportunities to local university and college students.

Fair and honest treatment of employees

The firm will be dedicated to protection of human rights. The firm will have a policy where there will be equal opportunities within the company and will also ensure that the firms activities will not violate any employee’s rights. Further increase in diversity of the workforce will be ensured through gender balance, non-racial discrimination and no age discrimination. Employees will be monitored according to their shift performances and not how long they have stayed in the firm.

Volunteering

The company will ensure it encourages its employees to volunteer. They can achieve this through volunteering in internally or externally based programs either by the company or other companies. The company will also seek to sponsor volunteering events for other organizations. The company will further be involved in making monetary donations which will aim at advancing education in the community, development of arts and talents and alleviating those in need.

Environmental Protection

The firm will recognize the need to protect the local environment. It further recognizes the importance of keeping the environment clean to benefit all. The company will aim at following best practices in garbage disposal and usage of chemical substances. Some of the activities in the firm which will require environmental attention are packaging, disposal of bottles by consumers and waste disposal by the firm. The firm aims at majoring on recycling of its materials more so used packaging bottles which will be majorly plastic bottles. Garbage disposal will be conducted by using environmentally friendly technologies such as environmentally friendly incinerators to reduce production of fumes to the environment. The firm further aims at creation of its water storage facility which will facilitate recycling of used water to ensure water conservation.

Health issues

The major health issue likely to be faced by the company is war on sugary products as a result of increase in diabetes and rise of organic consumption. By the fact that consumers are shifting demands to more organic and healthy foods and cutting out on consumption of processed foods the company will also come up with a policy that leads to development of wholesome products that align with consumer preferences and demands. The company will oversee the development of healthier options in terms of required juices such as making of whole fruit juices without additives. Further updating of new packing designs to ensure the customers meets their required organic fruit juices on demand and inclusion of specific labels on vegan or vegetarian specific fruit juices. The company will further have specific juice for specific target groups. For instance, the firm aims at coming up with juice specific for children in terms of packaging.

On the negative impact on health of certain segment of the population, the firm is committed on further research and implementation of health standards to warn against such health occurrences. Having been found out that there is an alarming rate of obesity and diabetes as a result of large consumption of sugary substances more so among children and adults, the company will invest in advertising on some of the health risks associated with its products. To target appropriate market segments the firm will ensure the retail outlets only deals with adult customers and not allow school going children to buy the products in bulk since it may not be of good benefit to their health. The firm will also discourage kids from taking the drinks instead of meals and only insist of taking the drinks after meals. This message will be re-laid on packaging instructions of each of the company’s products.

References

Bharanidharan, S (2018). ‘4 Ill Effects of Drinking Soda.’’ Medical Daily 26 Nov 2018.

Retrieved from

Essays, UK. (2018). ‘Ethics and Social Responsibility in Strategic Planning.’’ Retrieved from

https://www.ukessays.com/essays/management/ethics-and-social-responsibility-in-strategic-planning-management-essay.php

Hellmich, M. (2006). Ultimate bar book: The comprehensive guide to over 1,000 cocktails. San Francisco: Chronicle Books.

Lieberman, A., & Esgate, P. (2014). The definitive guide to entertainment marketing: Bringing the moguls, the media, and the magic to the world. Upper Saddle River, New Jersey: FT Press.

McMillan, S. (2008). The successful trainer's guide to marketing. San Diego, CA: IDEA.

https://www.medicaldaily.com/4-ill-effects-drinking-soda-428681

PLUNKETT, J. A. C. K. W. (2018). PLUNKETT'S FOOD INDUSTRY ALMANAC 2018: Food & beverages industry market research, statistics, ... trends & leading companies. Place of publication not identified: PLUNKETT RESEARCH.

Raval, V. H., & Fichadia, A. (2007). Risks, controls, and security: Concepts and applications. Hoboken, NJ: Wiley.

Feedback

Nice job with creating your company, product, and justifying the company name in detail. The company name is your brand and should be unique and easy to remember. You have done a good job in this section. It is important to understand the trends in your industry so that you can identify patterns or take advantage of opportunities. You should pay attention to past performance and growth projections. When you start a company, usually you identify a need in the market, or you are taking advantage of a trend. Really nice job clarifying your strategy and the key risks associated with your business. This will allow you to develop an appropriate strategy for your business. Nice job!

Nice job outlining your target market and the key demographic information. A clear picture of your target markets needed to design an appropriate strategy for your business. You did such a good job discussing your competition and your plan to differentiate your company! Good work! I enjoyed reading your section about the marketing and sales strategy. A solid strategy will lead to an increase in sales. Keep up the good work!

Nice work describing ways in which your company is committed to being a good corporate citizen. Being a good corporate citizen is important for a company's brand and reputation. Consumers respect and stay loyal to companies that care about their communities and the environment.

Excellent plan to mitigate the negative impacts of your company's activities on the environment! Making your business environmentally friendly not only benefits the environment but can also save you money (recycling can reduce your costs), can be a competitive advantage (attracting customers who have the same interests and values), and improves sustainability (less dependent on natural resources).

Great work discussing the health claims related to the product your are making. I really enjoyed reading the strategy you developed for you company to address these health claims. Companies must clarify any health claims they make or identify any potential issues related to the product, whether positive or negative. Evidence and research must support any positive claims. The companies must be able to defend any claim and clearly identify any potential issues related to the consumption of the beverage. Safety should always be the number one priority. Each company should have a plan in place to mitigate any negative issues, which can negatively affect the reputation of the company, and then sales.

I enjoyed reading your company's plan to address only the appropriate market segments. Since the target market is established and the purpose of the product is clear, companies must ensure that their advertising message reaches the appropriate audience. If a product should not be consumed by children, is the company’s responsibility to avoid exposure to this segment. This includes visuals, language, time of exposure, overall content, etc. Great work!

Great job with the format, organization, and grammar.

You did not submit the revised Excel document outlining your Financials for the business. This document was also required in week 7 discussion. You must ensure that you reflect all the numbers provided in the NAB Company Portfolio and the Financials Guide as well as reflect the plan you created so far. Every business decision lead to a number and these numbers will form the basis of your financial form. For example, if you decided to advertise on TV each week, there is a number associated with this decision. Financial statements provide you with the information you need to make decisions. You must understand the numbers to be able to assess the current situation at your company so that you can make appropriate decisions.