Business Plan Final

RUNING HEAD: BUINESS PLAN 1

BUSINESS PLAN i

Contents 1. Company description 1 a. Company description 1 b. Industry analysis and trends 1 Industry analysis 1 Industry trends 4 c. Strategic positioning and risk assessment 5 Risks 6 d. Target markets. 7 e. Competition 7 f. Marketing plan and sales strategy 8 2. Ethics and Social responsibility plan 9 a. Being a good citizen 10 b. Environmental care 11 c. Health issues. 12 d. Advertisements 12 References 14

This section contains a comprehensive description of the company and the analysis of the wines industry. The section also discusses the strategy alignment of the company as well as the risk assessment of the firm. The sections goes ahead to clarify the markets being targeted by the wines firm and the competitor analysis. The final area that the section focuses on is the marketing plan and the sales strategy to be employed in making the firm successful.

The business is to be entitled Wine De Asti. This firm is to be engaged in selling and making available of wines. The company would provide white and red wines and provide the different flavors as regular wines do as well. This is informed by the decisions that there is a gap in the market of people who do not require the used of hard beverages. The company will make this available to all the wine lovers in the locality at a variety of flavors.

 The mission of the firm is to offer an inviting and sophisticated beverage that does not lose the authenticity of our regular wine experience. We are committed to finding high quality products, which enhance its enjoyment, to maintaining the highest level of expertise and professionalism in order to market and sell these beverages.

To make an in depth analysis of the nonalcoholic industry it is necessary to use the potters five force models. This will be an objective tool to help analyze this industry well. these forces are the strengths of new entrants, rivalry among the exiting firms in the industry, the threats of substitutes, bargaining power of buyers and the bargaining power of suppliers. In the USA, most of the wine, over 89 percent, is produced in California (United States Department of Agriculture , 2006)

There are fewer nonalcoholic outlets in the states that offer quality wines that Wines Di Asti is planning. The exiting wine sellers in the country, the entrance of this firm will be able to revolutionize the industry in a significant way. Once the customers have been satisfied, it will make it hard for them to move to a rival wine cellar. This creates a unique proposition for the firm. The new entrants in the in industry therefore have a negligible effect on Wines Di Asti. This is also due to the fact that the customer base is very huge

The rivalry of the existing firms in the industry is also very minimal. This is due to the wide spread of the competing firms in the industry. The wine sellers in a typical city are very few and located far away from each other. The winner users are specific to tastes and very loyal to a given brands and would therefore not just use any brand. This therefore reduces the rivalry among the firms which allows them to make their own pricing without controlling the other firms. The rivalry is therefore very favorable for the wines Di Asti

Since the red and the white wines have a known medical value , it makes it impossible to have perfect substitutes. The wines industry is not comparable to other beverages such as beers and other alcoholic drinks. The varieties exiting in the markets are also unable to perfectly sub substitute each other. This therefore, makes the wines unique and able to attract a better return to the business. The lack of perfect substitutes for the white and red wines makes this industry very suitable for the business to operate and venture in.

The supplier in the wines industry plays a major role in influencing the markets. This is because of the specific nature of the wines industry. It takes time for the wined to be distilled and be readily available to the end user consumers. Some of the wines take toe to make and bring the quality that the customers want. This therefore makes the supplier play significant roles in the industry. Their influence is huge given this quality specification as well as due to the fact that they are few compared to other alcoholic drinks producers and suppliers. This high bargaining power of the supplier is not well placed for the busies that are to retail the wines such as wines Di Asti. However, those can be countered by having an official engagement with the suppliers through a contract where they may not fail the retailer due to the consequences stipulated in the official engagement. The USA is considered as the fourth highest producer of wines in the world (Stevenson, 2005, p. 462)

The buyers on the other hand have some bargaining powers but is less compared to the suppliers. The customers are specific to certain tastes and qualities but do not mind the prices. This makes it win-win situation for the retailer and the customer since they are able to foot the cost of getting the specific quality they want. Having the customers with a lower bargaining power makes the business be in control of the business but also the relatively good bargaining power they have makes the firm to listen to them

According to the porter five force model, the industry is regarded as being good when the threat from the new entrants is minimal, the rivalry is positive and less threatening , there are no available substitutes , the bargaining power of the supplier and the sellers is minimal. For the above, the wines industry faces all the positive indicators except for the bargaining powers of the suppliers (Porter, 2008).

The nonalcoholic beverages usage is on the increase in the country. This is because of the increasing concerns of the population to their health. The majority of the Americans are becoming very sensitive of their health needs and are aware of the effect of the alcohol to their health. There has been a very rigorous campaign in the globe against alcohol use that has led to the increment of the non-alcoholic drinks use (Harfmann, 2015). This drink is therefore going to be helpful to the drinkers as it will not bring any hangovers and will be useful to the customers as they will drink and drive.

The wine industry has recorded an increment of 2 percent in 2013 and in 2014. However, the market has recorded an increase in double digits of the use of blended wines. This includes a blend of the red and white wines. The kegs have also been showing a growth especially in the indoor and on premise settings. This places a huge market potential of the new wines that wines Di Asti is going to offer the markets. The average prices in the markets have been constantly standing at $9-11 but in the recent past, these prices have been shooting up as the citizens are ready to spend more . The industry is shifting to more innovative branding in the markets. The markets has seen mushrooming of new packaging, labeling and addition on the wines. These addition includes vitamins and energy enhancers. In addition it is estimated that a majority of the social media users are wine takers (Thach, 2014).

To gain a market niche, the firm will explore several strategic positioning strategies. The most important of them will be a differentiation strategy. The wines and the services to be offered by the firm will be uniquely packaged to ensure that the customer needs and wants have been addressed. This will include availing a package to the customers to include some music in the wine bars. The packaging of the wines will also vary from those prevailing in the ,markets to create a lower unit that can be offered to the customers at all times. This will also have a lower priced which makes the customers always afford the wines even when they are unable to purchase a full bottle or a full glass of the wines.

A reward scheme for the loyal and frequent customers will also be explored to strategically place the firm in a better position (Quast, 2012). This will help attract and retain more customers.

In addition the firm will explore other strategy alignments that enables it differentiate from the other wines sellers in the market. This will include the adherence to the laws as well as the moral obligation to the society. The firm will strictly prohibit the sale of the wines to the minor in all its outlets and even manage their entrance into the bars. The patron suspected to be of the lower age will be require to identify themselves. The patron also will not be sold excessive wines to an extent that they can cause harm to themselves and the general public. This will be a strategic alignment that will be unique in the markets

There are several risks the firm is likely to face in its operations. These risks must be well acknowledge in advance to help the firm plan well for the mitigation elements to be put in place. They are also capable of making the firm go under if not well checked.

Financial risks may be faced by the firm from its inception, running and continued growth of the firm. The financial risks include the running out of funds for the startup and in the daily operations of the business. This is so especially given that the business are likely to make no significant returns in the first year of operations. Other financial risks to be faced is being unable to meet the supplier’s requirements which will in turn make the firm lose its customer base. The best way to mitigate this is having an elaborate financial plan that allows for flexibly in the operations as well as putting in place safety nets that may avert the financial fall down of this business (Olson & Wu, 2008).

Operational risks may be faced in the future as the firm starts operating. There may be hitched in the delivery of the wines to the shop which in turn mean having stock out in the firm. Although this may be experienced in the opening stages of the firm, but their effects in the future will be devastating. This is so as it will mean having dissatisfied and disoriented customers when thy come to the bar and find that the firm is out of stock of their preferred wines. The cause may be delays in the ordering of the stocks, a huge lapse time between the ordering and receipt of the stocks as well as due to unreliable suppliers. To avert this the firm will have an elaborate stock management system that will allow the placing of the order in a good time. Reliable suppliers will also be identified and healthy relationship built with them. The products will also be transported by an insured vehicle and the wines themselves insured to help mitigate risks that may occur while the goods are on transit. (Meyer, 2009)

Economic risks may be faced by the firms. This may due to the financial frustrations the firm may face due to dwindling sales. This can also be caused by a change in the customer s purchasing power due to a harsh economic condition in the economy. The government can also make stringent economic requirements that may have a negative effect on the overall country’s macro and micro economic environments .

The target market for the wines Di Asti is the group of propel in the society who mind their health condition but still want to take beverages. This group consist of over 100 million wine drinkers in the USA. Of this population the firm targets to serve the 15 percent who are considered to be regular wine drinkers (Thach, 2014) .

The wines Di Asti also targets those customers who are seeking the enjoyment of the tastes , those seeking to socialize with their friends as well as those seeking to relax. It will also serve the customer who use the wines to pair it to with their foods.

Wines Di Asti is going to face competition from the local wine sellers in the town. Some of these retailer have been in operation in the market for a longer period of time and have established their place in the market. They may have an established base of loyal customers who are hard to attract from them. However wines Di Asti will employ a combination of several factors to attract them.

The local retail shops such as the supermarkets are also to provide some competition since they also stock the wines in their shelves. However this competition is not significant given the fact they do not have an elaborate place for the customers to sit down, socialize and even be free to act out.

The marketing strategy for the organization to sell the wines will be an important aspect in ensuring that the wines are able to sell in the markets. The plan will include the four Ps of marketing

The wines di Asti products will include the red and white wines. These wines will be sold out to the customer as tots, in glasses and the sealed bottles from the various places where the wines will be placed.

The wines will, be availed to customers in the various bars to be opened. These bars will be open every day of the week within the legally acceptable hours for the revelers to access them. The bars are to be strategically located within the town for easier and quick access by all the customers.

The bottled wines will be branded and sold out as sealed secondary distilled wines in the bar, supermarkets and other wine outlets in the towns. They will also be access from the online platforms where the customers will be allowed to make their orders. The customer will also be able to make orders through a call and have the wines delivered to their locations

The wines will first be priced at a relatively lower price to allow costumer attraction. This strategy will allow the products to penetrate the markets easily. Once the business has attracted enough customers, the prices will be increased marginally to allow the company meet the financial obligations (McGuigan, Moyer, & Arris, 2004). However this increment will be gradual so as not to scar away the customers.

There will be a premium pricing of some of the wines. This is meant to allow the firms attract some calls and prestige. This wine will bring in a new cache of customer who are affluent in the society and are looking for class. They will also be accorded a special place in the bars where they can interact and socialize among themselves easily.

The products will be advertised on various channels that will reach the customers. This will include the preparations of several fliers that will be distributed to the potential customers at various strategic places. There will also be posters that will be distributed in the public places concerning the wines available and the prices as well as the various offers.

Online platforms will also be used to advertise the wines. There will be adverts placed in the social media sites such as Facebook, LinkedIn, twitter and the Instagram. The adverts are better placed since they can be accessed any time of the day from any location. They also can be customized to suit any target customer

The first batch of the wines will be sold on a promotional basis. This will act as bait as once they have tasted and sampled out our wines, they are likely to be attracted to the product and therefore become loyal customers for a long period of time.

For any business in the globe acting socially responsibly and in an ethical way is great tool for both marketing and financial security. This is because of the fact that the customer of the business are the members of the society and therefore should be treated with a lot of respect and dignity (Markgraf, 2013). Wines di Asti as a corporate person in the society will strive to act responsibly and in the most ethical manner to ensure its survival . This plan details in depth how this will be carried out by the business. Its shareholders, and all the other stakeholders.

The firm will employ a combination of both labor and capital intensive method of productions. This will also the firm to create opportunities to the member of the community. The opportunities will include job and income opportunity to help improve the living standards of the society.

Observing the laws of the land will be at the core of the business. The firm will be decentralized to allow each operating unit be able to address the specific need of the legislations in every place they are operating. The managers found to be violating the laws will be disciplined accordingly and face the full force of the laws concerned

Treating employees with dignity and respect is one of the core values of the business. This will be in line with the legal requirements of the labor laws concerning the remunerations, leaves and working conditions. The firm will offer competitive packages to the employees to ensure that they are able to perform their duties in the appropriate manner. The firm will go the extra mile of training and developing the employees so that they can realize their dream within the firm (Quast, 2012). The employees will be provided with the right working gear to protect them from any danger in the workplace. In addition, the Human resource will always have a listening ear to the needs and demands of the employees. The firm will always negotiate with the employees on the matters that are affecting them and find an amicable solution to the problem. All these are meant to ensure that the employees are motivated and minimize the employee turnover (Gibb, 2011 ) .

Diversity in the workforce is highly encouraged in the firm. This is meant to give every human being equal opportunity without discrimination whatsoever on the basis of color, race, religion or backgrounds (Saylor.org, 2014). The firm is going to employ a cohesion strategy among all the people of the globe since they are not only our employee but also our customers and business partners.

The firm will also place a greater regard to the environmental purity. This is due to that fact that the product then firm is dealing with come from agriculture. For the business to continue thriving, the farmers in the farm, where the raw materials for the wines come from, must also be able to use farming methods that are safe to the environment. The business will not buy the product from manufactures and suppliers that are not environmentally friendly and compliant. We will also work closely with the farmers and the wine distillers to explore better methods for the production ,transportation and packaging of the wines in the most healthy and environmental friendly manner (Green to Gold,2006).

The use of the glass bottle in packaging the wine has an impact to the environment in a major ways. The glass are a non-biodegradable material that is harmfully to the environment and the animals as well, as human beings if disposed improperly. The firm will work with the community to buy wine bottle from them instead of allowing them to dispose them in the environment. This will go a long way in ensuring that the bottles have a minimal negative impact on the environment. The firm will also be encouraging the farmers to use chemical and the farm inputs that that are safe to the environment.

Water is greatly used in this industry from the growing of the crops in the field to the distilling of the wines and the cleaning of the rooms. The firm will encourage, as far as possible, the users to ensure that they use water in the most appropriate manner. The firm will explore other methods of cleaning in the bars that does not require much water as well as encourage the manufacturer to use the water in the most appropriate manner.

The wines and other beverages that are use have health related issues if they are abused. The products that we are dealing with may have a devastating health effects on the users if they are misused. This includes the diseases such a liver cirrhosis and kidney stones. Besides this , the wines when used to intoxicating levels affects the person decision making and may be unsuitable for them to make decisions. The wines if contaminated are very poisonous.

To mitigate against these affect the firm will employ several measures. First, the wines will not be solved to any miners or a person who is suspected to be a minor. Secondly, the packaging of the wines will be closely monitored to ensure that they are not contaminated while on transit and while in the shelves or even when they are being offered to the customers in the bar. The bar will closely monitor their patrons to ensure that they do not drink themselves silly. This is meant to ensure that they not only maintain good decision making status but also are able to check their health as well as ensure their own safety and that of others.

The beverage and advertisements are at times too much broad that they may affect certain category of the population aspect. One of most affected category is the minor who may get the wrong image from the adverts. As a means of acting socially responsible and ethically, the firm will employ several measures in its adverts. The first instance is not allowing minors into the bars run by the firms. The patron will be required to be on the majority age and be required to prove this in case there is any doubt.

The adverts to be placed in the public places must only carry the most relevant information. They will not contain any adult content as this may not be good ethically. The adverts must carry a huge disclaimer that is printed in bold showing the negative effect of the wines. Such disclaimers will help deter the unwanted category of the society. On the online platform, the adverts are also to be designed in a way that they do not contain any adult content or misleading information. They will place on the sites where the account owners are required to prove that they are of the majority age. Some of the most specific adverts will, be place in the specific owner pages or emails of the patrons who have proved their ages and are users of the wines.

The distribution channels to be used are meant to ensure that the customers are bale to aces the wines from the authorized places only. The wines will not be sold in public places where there is no control. This will be another measure besides the above to ensure that only the targeted population able access to the wines. The firm will also be very strictly with any other person going to be giving our product to the uncategorized citizens such as minors

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