Business plan in non-alcoholic beverage industry

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Reference no: EM13794639

Business Plan in Non-Alcoholic Beverage Industry

Executive Summary

X and Y Company drinks is a medium scale non-alcoholic beverage that is located in the lucrative industrial locations in Eastern New York. This is a relatively new business that is on the flagship level having been incorporated in the recent times.

The company aims at penetrating the New York non-alcoholic beverage industry considering it is the highest populated state in the United States. With diverse communities settling in the New York X and Y Company drink sees the future is bright and with its new innovative products, it looks to -give a challenge to rival companies including Coca-Cola, Pepsi among others. The products of X and Y Company will be position carefully in the market to ensure maximum customer satisfaction, supported by a caring customer service support. The primary goal of X and Y Company will be to strengthen the license to trade in a fair manner which will be strengthened mainly by stakeholders within the industry. As X and Y Company prospers the surrounding communities will benefit from the value created by the company and its behavior as a corporate body will be reflected through its major actions in the market (Abrams, 2014).

The initial plans are to produce three main lines of products including X, Y,Z drinks coming with different favors: M,N,O,P. The products will be sold in different sizes including 300ml,500ml and 1 liter bottles. The packaging based on the above is advisable as other companies mainly sell at those volumes creating a fair competition within the market. However our new innovation as well as the new packaging outlook is set to beat the competitors.

To prosper, X and Y Company needs to be flexible in the market, this will go a long way in building long term relationships with customers. From the products concept to dispatch, X and Y Company is set to ensure every system, procedure and process have objectivity to improve flexibility and responsive of the company to customers.

Objectives

To apply high quality standards of excellence among all levels of the organization
To contribute positively towards the growth of community through X and Y Company corporate social responsibility.
To develop satisfied customers all the time
To provide a conducive environment for working where all employees are treated with dignity and respect
To continuously improve standards of customer satisfaction and efficiency.

Key to success

The key to success of X and Y Company drinks will be driven by effective marketing strategies through market segmentation and identification of niche markets. Along these lines, the company will create innovative products within the target markets that will take a considerable market share within the non-alcoholic beverage industry. Hence the key to success will include; current technology in production, excellence fulfilling promises, loyalty and dedication of the staff, market know how, and adherence to Heribeng drinks values and principles.

Mission statement

X and Y Companydrinks intend to create a pleasant, sociable and enjoyable environment through provision of quality non-alcoholic beverage drinks (Hull, 2013). Hence, X and Y Company will create products where people feel relaxed when consuming as well as affordable prices depending on market conditions. X and Y Company drinks intends to provide value to its customers who care about quality and affordability of the products they consume, and the company want to make sure that every dollar spent is worth (Abrams, 2014).

Internally, the company will nurture its employees to live in a healthy, respective, creative and enjoyable environment. The employees will be fairly compensated and reminded to be respectful to the customer by providing quality drinks. In addition, it is mandatory that the company ensure customer satisfaction in order to build customer loyalty.

Vision Statement

X and Y Company vision is committed to be world class importer and distributor of refreshing and healthier beverages with natural properties for the growing consumer market of non-alcoholic beverages in Latin America.

A SWOT analysis is a planning matrix used to evaluate the strength, weakness, opportunity and threats of a certain organization. The trend of X&Y Company can be explained for the last 51 years in non-alcoholic beverage industry with a growth rate of 17.85%.The achieved sustained growth has improved the financial performance of its operation.X&Y deals with carbonated soft drinks characterized as sweet tasting energy brand known as royal. The reason why I choose this company is because of the following reasons; the company brand is recognized worldly and has a refreshing image. Second reason is the promotion the company has in football clubs which is my favorite game and lastly is the attracting advertising criteria for the different brand it manufactures on television. The company uses large volumes investment styles in the market to cope up with the giant competitors. Its objectives are subjected towards growth, value, and quality index-oriented brand approaches. Despite the company facing the macroeconomics competition challenges it is able to attractively invest and market its brand globally. The X&Y company objectives and strategy are based on long-term capital growth and best quality of non-alcoholic brand known as teens. (Allen, 2009).

Strength:

The strength of this company is openly found on aspects such as; the employees are able to enjoy the services provided by the company as well as the allowances. This hence has great significant on efficient output and the quality of the brand. Employees benefit from the job security thus easing supervision and management control. The product of X&Y Company is loaded with romanticizing image which is attractive to many people. It is probably enjoyed in the world with an average of 500 million people per day. On global scales, the company is able to market its brand in large volumes and therefore making cash inflows in its equity. The consumer purchasing power is increasing by 5% worldly though faced with giant competitors like coco cola.

Market trend information is another aspect. The company has developed a quality information online desk to enhance financial information sharing and market forces effects.X&Y Company is a debt-free, with ample liquidity. The cash and supported portfolio investment holdings amounting nearly $ 5.8 billion by year 2014. Although it suffers heavy outflows in advertising and promotion, it remains strong on earnings and revenue results. The company ischaracterized to the increased profitability to its branches in various countries and employment. (Allen, 2009)

X&Y's family is strategized in safeguarding customer's taste and preference by diversifying its brand in color and flavor. Its market position of different brand has enhanced good management hence sustaining the business momentum. More so the experience and commitment of supporters like banks has led consistency of the company's returns. The company promotion has led to increased volume of consumption in the recent years. It has heavily promoted football and basket clubs which act as a brand in marketing its product. The company's prices are moderately lower than those of its competitors thus making huge sale. The performance of the firm's institutional policies is effective and efficient. (Allen, 2009)

Weakness:

X&Y Company, however, is faced with some weakness. These include; it has over depended on the football games marketing hence putting its advertising into a lot of risks. The company is hence limited to the marketing options thus subjecting it to huge going concern risks. The higher reliance on the clubs marketing and promotion has increased the vulnerability of cash flows. (Allen, 2009)

Opportunities

The recognition of the brand has great impact in the company's competition. The X&Y brand is known by 87% of the people in the world. Its plastic bottling system has put it on the front line to be more attractive. The market positioning of the company sustains its momentum to continue learning. Currently, it has more options for the products and opportunities in the market. In the company's portfolio analysis, it opens up investment chances to the customers and shareholding. The fund investment opportunities are globally created. In general they are establishing the fund investment strategy there by seeking the donors whose earnings are fund's investment in the company. Also, an acquisition of the stake in other management company have given it a chance to improve on its marketing strategy .in addition, the innovation in diversified products has a greater opportunity of increasing its revenues. The company also has the opportunity towards the positive attitude for global beverage management.(Allen, 2009)

Threats:

The company in its non-alcoholic beverages is competing with viable competitor like Pepsi and coco cola in the industry. The threats of substitute have currently been affecting its brand consumption. The competition is very severe and needs firm strategies and policy to sustain it in operating despite the competition. The intense competition acts as a threat to the company in a manner that it affects the profit and the market share of X&Y. Also, being addicted to the brand it may cause health problems. It contains a lot of sugar that might damage teeth. Another threat is the increasing compliance cost and complexity that are affecting the company's growing trend. In many countries there are bureaucratic measures for the company to operate and even shareholding demand by such government thus being too expensive for the company to comply with. (Allen, 2009)

Strength:

Weakness:

Opportunities

Threats:

Company's Target Market

The target consumers for X&Y's company fresh fruit juice in Indianapolis within 25 miles from the downtown residential area will be the ethnic white middle income families comprising children from 5 years and above to adults of all ages, gender and educational level. According to U.S. Census Bureau (2014), the median income for the white middle income household in Indianapolis neighborhood is $58,000 compared to $10,700 among the African American households. In 2013, the population census estimates of Indianapolis metro area was 1,953,961 of which 61.8% were ethnic white above 5 years of age. The juice will be differentiated through various packs, with the largest being a family size pack of 5 liters. Smaller packs of 3, 2, 1, 0.5 and 0.25 liters will serve different consumer segments based on purchasing power. For example, students are targeted for the 0.25 liter packs that will cost $10 while the 0.5 and 1 liter packs are targeted for working consumers who need to quench their thirst during working hours costing $19 and $35 respectively. The 2, 3 and 5 liter packs are targeted for families and groups of people in social meetings ranging between 66 to 170 USD. Customers will also be allowed to purchase the juice in customized quantities for ceremonies and large gatherings. The product will be delivered sold through 10 major outlets in the city as well as delivery to the site depending on consumer desires such as in social gatherings. This will help the company to establish a strong brand name and market share as it will eliminate the cost of opening company outlets. Moreover, consumers are already aware of the existence of such outlets and therefore the company will benefit from such awareness thereby minimizing advertising costs.

Marketing Competition

The non-alcoholic beverage market is highly competitive with many players offering a variety of fresh juices while substitute products are being offered by well-established companies such as Coca-Cola and Pepsi. Consumers also have an option of quenching their thirst with water, milk, tea or coffee among other beverages. However, X&Y Company is prepared to cope with market competition by positioning itself as a leader in quality, freshness and customer focus. While competitors are adding sweetened flavors and preservatives in the juices, the company will sell natural fruit juices without any additives to address the growing health concerns among consumers as one of its core functions. The cost of the juices will be a financial relief to customers who are used to expensive fresh juices from competitors. Consumers will be free to purchase the products any time they want from the major outlets and use them anywhere they wish as they will be packed in a portable manner accompanied with straws to facilitate extraction from the container. The products create a feeling of freshness and health since there are no additives in it. In future, customers will be in a position to place orders online and the products will be delivered to their convenient location (Baker, 2011).

Marketing Vehicles

Advertisement in newspapers and magazines will be significant in helping the new company to catch the attention of consumers. These are widely read and will help in reaching the middle income families that according to Wilson & Gilligan (2015) comprise the main market for print media. Referrals will also be significant in ensuring the establishment of a wide network of consumers, with consumers who refer others to the products being offered free drinks. Free samples will also be offered in the outlets to allow consumers to taste the juices and appreciate the difference from those of competitors that they have tasted before. Social media including Facebook, twitter and Instagram will play a core role in marketing the new brand. The company's social media accounts will maintain a large following that will help to spread information to target consumers. Flyers will also be used to inform the target market regarding the new brand in their locality. Brochures will be used to inform potential consumers regarding the health and nutritive value of the company's beverages. A website will also be launched containing information on the company and its products. It will also be used later for online purchases in future. Radio and TV commercials are expensive, costing $500 per 30 seconds and $100 per 60 seconds hence will be used in the second year of operation after the company has established a strong foundation in the city.

Marketing Budget

Advertising and promotion year 1	No	Unit Cost	Total
Newspaper adverts	12	450	5400
Magazine adverts	3	100	300
Flyers	1000	0.2	200
Brochures	500	20	1000
Free samples	365	0.25	91.25
Maintaining social media	3	100	300
Total cost of advertising and promotion			7291.25

Key Management & Employees:

Managing Director,

Financial Controller

Business Development Manager,

Finance Manager,

Production Manager,

Sales Executives,

Finance Executives,

Quality Controller,

Store in charge,

Board Members & Advisors:

Managing Director

Financial Controller

Business Development Manager

Management Structure & Style:

Rigid task definition

Vertical communication

High degrees of formalization

Authority-based influence

Centralized control

Complex differentiation

High degree of co-ordination

Style:A functional organization structure will be adopted to carry on business. A functional organizational structure is centered on job functions, such as marketing, research and development and finance.A functional organizational structure works well when small companies are heavily project-focused. Directors can assign certain projects to managers, who can then divvy up tasks with their analysts. The department can then more effectively meet their project deadlines.

Software Needs: A proper ERP system will be introduced and implemented. Initially we will continue with manual working and on the other hand an ERP system will be started and implemented. The scheduled training and other facilities will be provided to all management as well as end users in order to get a firm grip on the ERP.

Hardware Needs:

Service Component

Ordering Interface

Control Panel & Microprocessor

Product Dispenser (off-the-shelf base)

Base Dispenser Modifications

Product Delivery arm

Dispenser Casing & Artwork

Wireless Data Service

First & -Second Stage Internet Site

Hardware Installation

Testing Operations

2. Technology PlanBy the year 2018, virtually every major toll road and service stations in 20 major markets will be equipped to charge customers' accounts through a seamless, and virtually timeless, electronic transaction. In the future, NAB anticipates that transactions will piggyback off these transponder- receiver payment systems to enable ordering retail products through the driver's on-board communication transponder and have this order beamed to the retailing system as they pull into the transaction area. By developing additional applications for this evolving technology, it will become the backbone of a truly cutting-edge new distribution platform - - high-tech driver-interface retailing.

3. Management & Organization:

Strengthen Established Relationships NAB has met with the senior executives of eight major toll roads, representing 32% of our target market, to discuss the merit of our products and services on their roads. Each has expressed interest in the service and looks forward to a physical demonstration of the pilot. Before a pilot operation is implemented at a demonstration site, NAB will refresh these relationships to emphasize the connection of d river- interface retailing with the company's brand.

Launch Pilot. At a localized toll road, NAB will launch a demonstration site as its first pilot operation. NAB will collect and own the data from the pilot to further refine financial and operational assumptions.

Demonstrate Operations. With a working pilot operation, NAB will have the opportunity to drive prospective markets through the service so that they can experience the products and services Convenience first-hand.

Negotiate with the Majors. Early in the pilot operation, NAB will negotiate with the major toll roads (excess of 100 million annual transactions) to implement a pilot on their road with the option to roll the service out.

Build-out Operations on Major Roads. Roll out within a major toll road will involve a tailored pilot operation, specific systems integration, demographic and traffic flow analyses, and an awareness marketing campaign.

Competitive Reaction. NAB views the beverage companies as potential competitors, with the threat heightened if they are excluded from the Company's distribution channel. For this reason, NAB has designed the business model to attract an alliance with the strongest of the beverage companies and turn them into an ally. By gaining exclusive rights to the toll roads, NAB plans to pre-empt competitive threats.

Contingency Plans. NAB will monitor the political climate around toll road negotiations to determine whether to develop and shift toward contingency plans. This could include a tighter relationship with a major beverage company, a strong alliance with a systems integrator, or other strategic options to facilitate implementation of the company's business model.

Alliances. In the key areas listed below, NAB formalizes relationships to leverage the existing infrastructure and expertise while minimizing NAB's capital invest

Ethnics & Social Responsibility

The establishment of X&Y Company has put in place the ethical and social values of the community. Its ethics and compliance management has set an efficient operational responsibility to safeguard its operation. In regard to X&Y Company's objectives and strategy, it has established educational, consultation and monitoring responsibility platform to its customers and shareholders. Despite the macroeconomics challenge of unemployment in the world, the companies have been hiring both the skilled and unskilled workforce within its working area in the 115 countries it is operating. It is functional for 24 hours thus creating two shift job schedules for its workers. Currently, the company has employed more than 30000 employees who have different competence in respective disciplines. (Allen, 2012)

The companies abide by the laws required for it to operate. The fundamental laws include intellectual integrity, law of contract, competitive intelligence law, financial integrity, and government and partnership laws. As a people intensive business company, X&Y emphasizes on competence and motivating its employees and promoting them. X&Y has a strategic plan to its employees with an aim of developing the necessary talents and retaining them for it to succeed in the business. With excellent training and recruiting its employees, it enables the employees to produce to their fully potential (Allen, 2012). The career planning platform has well stated the aspects of noble employees. Thus, the company empowers and encourages them towards business values and succession. Being a loyal company and caring for the society development, employees enjoy the remuneration and allowances. Employees also enjoy the job security thus easing supervision and management control.

The company has a non-corrupt human resource management that enhances effective and efficient training and recruiting excellent skilled workforce irrespective of ethnic group, sex, or citizen. The company protects the value and the good faith of the employees. The company iswell known to safeguard the well-being of its workers globally. A safe and healthy workplace, employee's health and engagement of employee in the organization, has significantly helped the company on competing for success with the viable competitors such as Coco cola and Pepsi. (Allen, 2012)

X&Y Company is designed as a social venture to safeguard the environment as well as the society. The company has a primary focus on positive changes in its operating regions. On the aspect of energy efficient and climate protection, the company has been focused on the global climate changes thus establishing control measures on emission of the gas and waste. By mass usage of vending machines in production and vehicles in delivering the brand has a great impact on carbon emission. However, the company has been applying a mix of energy sources in its production thus reducing the cost of energy thus increasing its production and conserving the environment.

Being in the line of production, X&Y Company has a lot of activities. Some of the activities include delivery, packaging, and disposal of bottles. In delivering the brand, vehicles are heavily depended on, thus, the more increased production has led to increased carbon emission. The carbon emission has so far affected the climate changes globally (Allen, 2012). To control this global challenge the company has been advancing its delivery method by using more technical method upcoming. On packaging activity, the company has ensured sustainable global packaging systems that meet the customer's demands and ensuring the wastage of bottles after emptying the brand controlled. By packaging in well-designed plastic bottles the company makes the customer to reuse them in other ways hence making the brand attractive and controlling wastage.

Water is the primary ingredient in X&Y Company mainly in its brands and manufacturing process. In its 200 bottling plants, it has been marketing water brands and acting as a source of water. The company has been efficiently using water and recycling the used water in its operation. These efforts have played a conservation role in the ecosystem as well as health promotion towards the society. Also in the areas where water is scarce the company has been able to operate by recycling the used water by wastewater treatment techniques. (Allen, 2012)

The company's branding has been focusing mainly on the health impact to the consumer. However, its brand contains a lot of sugar that might damage teeth. Despite this negative health problem the company has been on the fore line in educating the consumers and associates as well as the community on the energy balancing approaches to fight against lifestyle disorders such as obesity problem facing the society. The company brand advertising has been associated with sports and exercises to encourage the community to undertake exercises.

Reference no: EM13794639

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