Strategic Plan Part 1: New Product or Service AND Strategic Plan Part 2: SWOT Analysis Paper

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· Processed on: 27-Feb-2016 1:44 PM MST

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Testing By Melissa Simmons

 

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Running head: NEW PRODUCT STRATEGY 1 New Product Strategy (Name) (University) Propose a new product The innovative product is a healthy drink. The product is named the life refresher. It is healthy for it has been made from fresh fruits. We came up with the product for we saw a gap in the market that people were in need of a healthy diet. People not only here but in the world have become concerned about their health. Consumption is now pegged at organic foods (Ashurst, 2006). As a result, we saw an opportunity of in a natural drink rather than in foods. People have changed their diet foods, but they still consume carbonated beverages. Life refresher will give an opportunity to drink organic juice. Bates (2001) says that he supply chain will adhere to ethical green means from the suppliers all the way to the customers. Supplies must be produced through necessary means. The production will adhere to high health standards to produce a pure product. The product will be distributed far and wide using efficient means to ensure availability. Being an organic product that is available at reasonable prices will be a game changer in the market. Consumers will take up the product with much gusto.  Mission statement  The  Mission is to provide a unique and relaxing dining experience to  the lovers of organic fruits as well as to people with diabetic and heart health conditions.  We will strive to achieve this goal by:  a) providing menu items incorporating quality  blends ad smoothies  at reasonable prices  b) being  mindful of the well-being of our customers and staff treating each and  everyone  with dignity and respect.  c) providing safe products by adhering to highest standards of cleanliness Guiding values Being Mindful of our Customers  Coinciding with our family values, we will treat both our  clients  and staff in a manner in which we would want to be treated (or better!).  Customer concern is our focus and priority.  Gratitude An attitude of gratitude  is  shown to our customers, employees and vendors because without their input, service, labor and time, our business would not be here without them!  All activities are done with great respect and in appreciation of the partnership as a client, supplier or equity owner.  Our Service Provide the warm and friendly service expected from a family-style  business front  creating an informal, comfortable environment which will make the customers satisfied and  wants  to return again and again.  Earning customer loyalty through sustained goodwill is our focus. Giving back to the community Providing employment to the community in which we serve. Qualified employees in the neighboring community through will be given work following a quota systems criteria. Activities like environmental conservation, sporting and scholarship among others that promote the welfare of the society will have our backing. Vision Stay ahead in the smoothies industry by providing organic products. The differentiating concept will be providing customers with unique fruit products which are purely natural. The aim is to promote healthy living which consumers advocate for in the recent years. That will be the competitive advantage that the business will ride on to win customers while keeping rivals at bay. Business model Target market and segmentation The target market will require persons who need organic foods like the diabetic people and vegetarians (Bates, 2001). Travelers and tourists are a source market. Persons who have less time to cook will be targeted. School pupils and students are part of the potential clients. Working people who have short lunch breaks will be on the target list. Product attributes and branding Life refresher is a healthy drink. It is of high nutritional value; it has the high level of vitamins and minerals. The product is organic for the juice is extracted and blended in its natural form without any food additives and preserves (Bates, 2001). The processing occurs in a clean environment. The product meets high ethical standards. Packaging, Labeling and Product support services The product will be packaged in disposable containers. According to Welter (2013), materials used are bio-degradable to ensure they do not cause an environmental hazard. The product will be packaged in 200ml, 500ml, 1 liter and 5liters containers. The containers will have details of manufacture date, quantity, expiry date and customer care details. The products will have disposable straws. Pricing Strategy As a market entry strategy, price skimming and absorption pricing will be used (Singh, 2010). The product will be sold in high-end markets using the market skimming method. Being a new will attract many clients who want to try the product out and, as a result, will be charged highly. As a unique product for it is organic will also attract many customers hence, it should be highly charged. The pricing strategy in low-income areas, absorption pricing will be used. Absorption costing aims at recovering all cost incurred in delivering the goods to the market. That means the low-end market will get product during introduction stages at no extra cost. As time goes by prices, need to be readjusted based on contribution margin-based pricing (Welter, 2013). The contribution is that additional cost charged on top of the total production cost. The contribution is the profit the firm will derive from selling the product at an extra cost. The contribution cost should be more in high-end market for consumers have greater purchasing power. Low-end markets should be charged a lower contribution for they have a lower purchasing power. Promotion Strategy Many potential clients are tech-savvy and will be reached via the extensive social media network (Singh, 2010). The firm shall establish WhatsApp, Twitter, Facebook, YouTube, Instagram and company website presence to reach out to 70 percent of the market. These platforms have become useful in marketing. Inquiries, complaints, concerns, and compliments are most channeled through social media in the current world. Therefore, products prices and products will be posted and regularly reviewed as per the market changes. Word of mouth and referral marketing through friends and family will account for 10 percent of the marketing strategy. To reach out to the local fraternity and environment, the firm shall use its employee’s network to reach out to the persons. The company shall give marketing incentives to its employees to motivate them to participate in the sales activities (Welter, 2013). A five percent incentive will be credited to the employee or person who a purchase made from his/her referral. That will work well for young persons’ specially the students and pupils. Audio-Visual media and print media will account for 20 percent combined of the marketing strategy media houses tend to combine the adverts in two of their outlets. According to Singh (2010), television, radio, newspapers and business magazine articles will come handy in marketing. Persons of the older generation who are lifelong readers and fan of the television will be reached mainly through this media. References Ashurst, P. R., & Hargitt, R. (2006). Soft drink and fruit juice problems solved. Cambridge: Woodhead Bates, R. P., Crandall, P. G., & Morris, J. R. (2001). Principles and practices of small-and medium-scale fruit juice processing. Rome: FAO Singh, S. (2010). Handbook of business practices and growth in emerging markets. Hackensack, NJ: World Scientific Welter, F. (2013). Entrepreneurial business and society: Frontiers in European Entrepreneurship Research. Northampton, Mass: Edward Elgar Pub  NEW PRODUCT STRATEGY 2 NEW PRODUCT STRATEGY 3 NEW PRODUCT STRATEGY 4 NEW PRODUCT STRATEGY 5 NEW PRODUCT STRATEGY 6 NEW PRODUCT STRATEGY 7