PPT and speech draft

Ever since its establishment, the client's company, Zeal beverages has focused on supporting the development of a healthy lifestyle by individuals. However, the company has not yet exploited the Philippines' food and beverage industry which is projected to produce approximately US$203M in 2020 and a growth rate of 17.8% (Statista, 2020). Thus, the company’s main vision based on its deeply enrooted culture is to promote a healthier lifestyle for all. It is worth noting that the country ranks 22, and 32 in regards to the number of Strokes, and Coronary Heart Diseases respectively (WHO, 2018). This notion supports the development of healthier lifestyle choices within the country.

The mission statement of the company that would impact the change employees, as well as act as a branding campaign is "To build a healthy community free of unhealthy lifestyle choices". It is worth noting that a company’s brand is normally associated with its values hence portraying the company as a healthy lifestyle supporting brand will create a significant point of differentiation within the highly volatile market. This notion will be achieved through the use of strategic partnerships by companies already established within the country and especially with The Villar Group, Zest-O, and Core Application Services, Inc. The three companies are involved in the non-alcoholic beverage distribution, manufacturing, development, and maintenance of cloud-based information systems, and advertisements respectively. It is worth noting that partnering with already existing partners promotes the creation of a competitive niche by reducing the costs of distribution, while at the same time reaching larger masses. This notion will provide the two most competitive niches that align with the company's vision that include low-cost products, quality, and purely health products.

Blue Ocean Strategy

The company aims at adopting a low-cost operational strategy characterized by low sugar levels, use of pre-existing production, and distribution networks to increase the availability of the product within the market. The main points of differentiation will be the introduction of the company as a purely healthy beverage company with the main target being attaining the highest nutritional benefit for the consumers. This notion will be coupled with more flexible distribution channels such as delivery and increased presence within e-commerce, and physical stores thus increasing brand awareness. It is worth noting that the high prevalence of regulations reducing the use of sugar in beverages and increased health preferences for healthy products presents Zeal healthy beverages as a unique product within the market. This notion is coupled with attention to the economic disparities within the country thus reducing the prices for the products as other companies increase their prices due to high Sugar-Sweetened beverage taxes imposed by the Philippian government.

Technological 3 M functional strategy Analysis

The partnership strategy with Core Application Services, Inc will facilitate the development of various information systems for use within the daily operational services within the company. It is worth noting that within the contemporary business environment, technology plays a vital role in the development of revenue within any business (Cascio & Montealegre, 2016 pg.352). Subsequently, because the company will be using local manufacturers for the development of the product such as Zest-O, the company will be in a position to reduce the level of capital required to fulfill the whole manufacturing process. It is worth noting that the company could be adversely affected by the 30% tax imposition on sugary beverages by the government of the Philippines (Charm, 2020). Thus, partnership with the company would bring into the company a win situation whereby the company will get to use the existing industrial manufacturing plants to serve the anticipated demand for the goods.

Organizational 3 M functional strategy Analysis

While the organization might require manpower for management of various aspects of the company such as financials and operational management requirements, it will also be able to avoid excessive overhead costs in massive recruitment, and maintenance of labor for manufacturing and other minor operational functions through a partnership with Zest Co. This strategy acts as a market-taking approach since the cost of production will have been significantly reduced hence reducing the cost of products while increasing the availability of the products within the market.

Ecosystem 3 M functional strategy Analysis

The company should aim at developing a low-cost manufacturing strategy to avoid the increase in the cost per unit of the products within the market. Thus, through the use of the already existing Zest O company’s tools and equipment, the Zeal Beverage company can avoid the high capital intensive nature of setting up a manufacturing plant. It is worth noting that while the company is facing stiff operational challenges from a tax increase on its products, it is also shifting its attention to international markets meaning that it could reduce the level of production within the local market hence providing an opportunity for partnership with the company (Charm, 2017). Subsequently, the company will use

The Villar Group will be playing a vital role in functions involving organizational functions whereas Core Applications Inc. will be vital in the development of the most effective technology for smooth operations, manipulating, and motivating the existing market segment. Finally, the Zest O will be responsible for the manufacturing, provision of monetary needs during the process, and development of the most cost-effective method to package and distribute the products due to their preexisting experience.

Six forces analysis

The beverage industry in the Philippines, and especially the non-alcoholic beverage industry is normally disrupted by the high volatility of the industry which exposes local manufacturers to unfair competition from the already established firms such as Coca Cola and Pepsi which have a huge financial portfolio to pursue different marketing strategies to gain a competitive niche (Gupta, 2017).

Although the beverage market within the country is very volatile, new entrants often face different challenges ranging from government policies such as the 30% sugar tax imposed on the non-alcoholic Zest-O beverage to regulate the sugar used in making those products (Tax Reforms Philippines, 2017). This notion increases the difficulty of access to the market whose main criteria is Taste when purchasing beverages. According to research, 27.7% and 36% of Filipinos analyze the taste and the health benefits respectively when purchasing a beverage product.

Subsequently, the end-users within the industry have been exhibiting changes to healthier beverage products that have been the trend within the industry not only in the Philippines but worldwide (Galivan & Cadigan, 2020). This notion contributes towards the understanding of the need for consumer concentration when developing beverage products for the local market.

The suppliers within the industry, on the other hand, have been highly affected by the fluctuating government regulations, for example, the sugar-sweetened beverage tax that regulates the amount of sugar used in the production of beverage products by imposing a 30% exercise tax on those particular products. As a result, the suppliers have been forced to increase their product prices for example regular cola that changed prices by up to 26% of the previous prices (Saxena et al., 2019 pg.97).

As much as there may be the availability of some healthy beverage products such as Celebes products, their accessibility is only limited to the technologically knowledgeable personnel. According to research, revenue from the Online Food Delivery section is projected to reach up to US$247m in 2020 meaning that consumers are shifting towards online shopping in regards to their food and beverages (Statista, 2020). This notion shows the importance of industrial players to incorporate online shopping platforms as part of their complementary product to the consumers.

Scenarios for future competitive growth

Technology change

The consumer shopping preference within the Philippines is quickly changing to the adaptation of e-commerce selling platforms whereby as of 2016, the e-commerce generate revenue was $3billion as compared to 2015’s $500 million (Masigan, 2020). Thus, the company stands to gain more through the exploitation of the online options so as exhaustively exploit the millennial, and generation z consumers who are identified as "clean eaters" meaning that they are more cautious about what they consume in regards o nutritional benefits or effects. Through the partnership with Core Applications, the company expects to develop an integrated eCommerce platform from where an individual can view products, and subsequently, view other products from the company. Due to the vitality of the e-commerce platforms, and technology in the company's operations, the partnership will reduce the costs for future technological expansion hence providing sustainability in regards to the sales revenue.

Move towards online delivery

Partnership with All Day Online grocery stores will open up the existing market to the company's product that acts as substitutes to the prevailing sweetened beverages within the Market. The Villar group owns more than 25 outlets across the country worth online shopping options that allow customers to make orders online. Thus, partnering with the retail chain will enable the company to reach the intended customer segment through increased online presence and reduced costs of shelf advertising within the retail stores.

Governmental Health regulations

Although there has been an attempt to develop healthier products in the Philippines, the level of overweight adults remains high with approximately 36 percent of adults being recorded as being overweight. This notion explains why the government imposed taxes on sugar-sweetened beverage drinks that led to a decline in domestic sales volumes of most companies such as Zest-O (Charm, 2017). Hence, the company could leverage the use of the company's existing manufacturing resources thus adopting a local approach towards attracting the market by adopting a low-cost strategy in marketing the product. It is also worth noting that higher government regulations on the sweetened beverages provide a competitive niche to the company by significantly reducing the cost of production increased by factors such as tax, and the initial cost of production.

Corporate social responsibility partnership/sponsorship programs.

CSR is usually one of the best ways to portray the company's values to the general public thus enabling them to connect with the products at a more personal level. Zeal Beverages should consider promoting the most popular sport, Basketball through partnership programs with the country's league basketball. It is worth noting that advertisement of the brand products through the National Collegiate Athletic Association (NCAA) will expose the product to a lot of health product enthusiasts, as well as to the general public since the sport is considered part of the country’s culture (Topendsports, n.d).

References

Cascio, W. F., & Montealegre, R. (2016). How Technology Is Changing Work and Organizations. Annual Review of Organizational Psychology and Organizational Behavior, 3(1), 349-375. https://www.researchgate.net/publication/299400943_How_Technology_Is_Changing_Work_and_Organizations

Charm, N. (2017). Zest-O sales decline 30% on sugar tax. BusinessWorld | The most trusted source of Philippine business news and analysis. https://www.bworldonline.com/zest-o-sales-decline-30-on-sugar-tax/

Galivan, K., & Cadigan, P. (2020). 2020 business trends for food and beverage companies. https://rsmus.com/what-we-do/industries/consumer-products/food-and-beverage/2020-business-trends-for-food-and-beverage-companies.html

KenResearch. (2017). Philippines non alcoholic beverages market, alcoholic beverages market Philippines, Philippines non alcoholic beverages export volume, import volume - Ken research. Market Research Reports, Business Research, Industry Research Reports, Market Research Company in India, B2B Market Research Companies- Ken Research. https://www.kenresearch.com/press/philippines-non-alcoholic-beverages-market-future-outlook/1739.html

Masigan, A. S. (2020). The state of e-Commerce in the Philippines. BusinessWorld | The most trusted source of Philippine business news and analysis. https://www.bworldonline.com/the-state-of-e-commerce-in-the-philippines/#:~:text=From%20a%20sales%20turnover%20of,purchases%2C%20when%20compared%20to%202019

Saxena, A., Koon, A. D., Lagrada-Rombaua, L., Angeles-Agdeppa, I., Johns, B., & Capanzana, M. (2018). Modelling the impact of a tax on sweetened beverages in the Philippines: An extended cost–effectiveness analysis. Bulletin of the World Health Organization, 97(2), 97-107. https://doi.org/10.2471/blt.18.219980

Statista. (2020). Food & beverages - Philippines | Statista market forecast. https://www.statista.com/outlook/253/123/food-beverages/philippines

Statista. (2020). Philippines: Factors when purchasing non-alcoholic beverages 2019. https://www.statista.com/statistics/1095334/philippines-factors-when-purchasing-non-alcoholic-beverages/

TopendSports. (n.d.). Sport in Philippines. Topend Sports | The Sports Fitness, Nutrition and Science Resource. https://www.topendsports.com/world/countries/philippines.htm

WHO. (2018). Stroke in Philippines. World Life Expectancy. https://www.worldlifeexpectancy.com/philippines-stroke