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Business Plan 1
Business Plan
Isaac Farmer
Prof Veronica Brown-Corbin
BUS 599 Strategic Management
31 May 2015
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Company Name:
Flavoured Fruity Fluids
Purpose:
The purpose of this company is to provide consumers a healthy nonalcoholic beverage that will
enhance their nutrition and build their immune systems to prevent sickness and diseases.
Mission Statement:
To help save lives and promote healthy lifestyles.
Vision:
To provide healthy quality products that will extend longer lifestyles due to healthy fluids for
healthy and obese customers.
Core Values:
We believe in utilizing real fruit in our products.
We believe in a healthy lifestyle for our customers.
We believe in honesty and respecting our consumers’ bodies.
We believe in being an innovative and creative manufacturer of healthy drinks.
Goals:
To be the best producer of healthy drinks.
To remain loyal to customers throughout the tenure of the company existence.
To provide excellent customer service at all times.
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Expand globally
Management Directory:
I will be the business owner and director of Flavoured Fruity Fluids.
Scope of Work:
Flavoured Fruity Fluids will obtain natural fresh fruit from multiple farmers and then will
manufacture the juice and deliver it to business establishments.
Financial Considerations:
My father has passed away and has left me a million dollars to start my own business. I will
utilize half of the million dollars for my business and hold on to the rest for any other ventures or
issues that may come to surface.
Non-Alcoholic Trends
The industry provides the soft drinks along with the hot drinks. The sweetener and non-
carbonated water is added to the soft drinks. The category pertains to the major domination in the
industry and this includes the various energy drinks and the sport drinks. The retail sales are high
and with the growing competition, it requires greater strategies to be employed in the soft drink
market. The brand value has the basis of authenticity and purity. It also has a greater amount of
integrity which is complementary to the social responsibility with emphasis on the conditions
pertaining to the environment and the focus on standards that are internationally acceptable
across the companies in the industry. The size of the market is about $850 million based on the
statistics of the market size evaluated in 2013 (Marketrealist, 2014).
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The companies boast of their increased loyalty amongst customers through the channel of
branding and have been aggressively involved with setting up contracts with the celebrities to
demonstrate success. Flavoured Fruity Fluids beverage appeals to its consumers because of the
healthy fruits it is produced from. With the well-considered social responsibility and the
preferences linked to the environment, the potential of the industry is positive because of the
market in the niche segment it caters to. Meanwhile, the traditional market and then attaining the
success in the retail channel would implement a different approach. The successive
implementation can well garner the niche segment as well with the related approach along; with
the potential to tap the large market that pertains to the drinkers of health drinks.
Strategic Position
The market branding strategy adopted by the industry players in the non-alcoholic
beverage pertain to the opportunity by differentiating themselves from the prevailing
competition. Therefore, ensuring to set an example of a company which links itself to a greater
emphasis on the public relations will put the company in great standings with consumers. The
strategy does hold great potential but would not really aid from a long term perspective. Also it
involves a greater cost and the other companies pertaining to different industries are banking on
the strategy (SagePFW, 2015).
Distribution Channels
Great public relations and the efforts on sampling plays a part of the distribution and the
distribution strategy which holds great opportunity for the brand going forward. The
management team associated with the brand has proved entrepreneurial success and the business
model adopted by them is innovative. The team is flexible to the changes and the strengthening
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of the resource capabilities with the hiring of experienced sales managers carrying greater
experience. This experience along with adding their calibre to the group is a factor which cannot
be undermined with relevance to the proven record of the management team. It is well connected
with the food channels along with enhanced tie ups with the distributors associated with the
whole foods and whole oats chains that has been working with great success and holds a great
future.
Flavoured Fruity Fluids will be sold in grocery stores and in convenient stores. This will
allow consumers to purchase this drink in multiple places. These venues will ensure that the
drinks are stocked on the shelves and will be sold because they will want my company to
continue to send them the product. Consumers can call my company if they want to purchase
Flavoured Fruity Fluids in bulk for events. There will be a warehouse that manufactures this
drink and consumers can call directly to the warehouse for the products and they will have to pay
for shipping and handling. The grocery stores and convenient stores will obtain their products
from the warehouse as well however they will not have to pay for shipping and handling because
we will have an agreement where I can utilize their shelves to sell my products.
Risks
The risk attached to the business includes the delivery of constant quality along with the
reliance of the loyalty from the customers. In order to maintain the quality standards, it is
essential that there is regularized monitoring and the sampling checks done. The business also
faces the risk of the imitation of the branding. The management has to have a greater control
with the trademarks in place. The storage of the beverage is linked to the adoption of various
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strategies involved in securing the place with the constraints of the weather. The controlled
temperature has to be maintained within the warehouse facility.
SWOT ANALYSIS MATRIX
Strengths Weaknesses
Catering to the need of the consumers The range of materials is narrow
Large growing market Shelf life of the raw materials in process
Low Cost The negative publicity
Beverage being non-alcoholic Limitation on the experience
To provide consumers a healthy nonalcoholic beverage that will enhance their nutrition and build their immune systems to prevent sickness and diseases
Management has the required skills
Opportunities Threats
New Packaging The issues related to the health
Improved Branding The cost in distribution
Niche Market Segment The threat of brand imitation
Reduction of the capital cost Limited opportunity with regards to the windows
Legal and Political environment Greater competition
Reduced risk in terms of investments Rivals implementing various competitive strategies
Lower Set up Cost
Replacement of alcoholic beverages
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Market Analysis:
The market analysis investigates both the internal and external business environment. It is
vital that Flavoured Fruity Fluids carefully monitors both the internal and external aspects
regarding its business. As both the internal and external environment and their respective
influences will be decisive traits in relation to Coke's success and survival in the soft drink
industry.
Internal Business Environment
The internal business environment and its influence is within the business control. The
main attributes in the internal environment include the following: efficiency in the production
process, management skills, and effective communication channels. To effectively control and
monitor the internal business environment, Coke must conduct continual appraisals of the
business operations and readily act upon any factors. This causes inefficiencies in any phase of
the production and consumer process.
External Business Environment
The external business environment and its influences are usually powerful forces that can
affect a whole industry. In fact, a whole economy as well. Changes in the external business
environment will create opportunities or threats in the market place that Flavoured Fruity Fluids
must be aware of. Vacillations in the economy, changing customer attitudes and values, and
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demographic patterns heavily influence the success of Flavoured Fruity Fluid products on the
market and the reception they receive from the consumers.
Product Advancement:
In today's competitive environment, having the right product at the right place and at the
right time is not always enough for success. Viable communication with the target market is
essential for the success of the product and business. Advancement is the marketing mix
designed to update the marketplace.
The promotional mix is the combination of personal selling, advertising, sales promotion
and public relations that is utilized in the marketing plan. Over the line promotions refers to
mainstream media such as: television, radio, billboards, and in newspapers and magazines.
Flavoured Fruity Fluids has used this as the main form of promotion for the extensive range of
products. Albeit Advertising is usually very expensive. It is the most effective way of reminding
and exposing potential customers to Flavoured Fruity Fluids Products.
I. Deals Analysis
The sales analysis breaks down the total business sales by market segments to identify
strengths and weaknesses in the different areas of sales. Merchants of Flavoured Fruity Fluids
products vary from major retail supermarkets to small corner stores. This gives the products
maximum exposure to customers at their convenience.
II. Market Share Analysis
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Piece of the pie analysis compares Flavoured Fruity Fluid business sales performance
with its competitors. Flavoured Fruity Fluids looks to increase its market share by Over 60%.
With the changes Flavoured Fruity Fluids is currently undergoing, they aim to regain an iron fist
control of the market. The target market various age groups and lifestyles are from high school
students to universities.
Showcasing Profitability Analysis
This analysis looks at the cost side of marketing and the profitability of products, sales
territories, market segments, and sales people. There are three ratios to monitor marketing
profitability. They are market research to sales, advertising to sales, and sales representatives to
sales. The results of these three tools can help Flavoured Fruity Fluids determine any emerging
trends such as the need for a different product. Contrasting these results and actual results, gives
the business an idea when to change.
Statistical Surveying
When attempting to implement a new marketing plan, a business must address its target
market and conduct the relevant information to ensure the new marketing plan differs from the
old one and it is better for the business. When conducting market research a business must first
define the problem and afterward gather the appropriate information to solve the problem. There
are three types of information a business can gather to solve its problems.
Target Market
From a wide viewpoint, our company juice battle's general target business will be sold in
my community super markets and convenient stores within a twenty-five mile radius. This
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allows us to get to the different establishments and restock the shelves and also promote our juice
efficiently. There will be less gas spent and less travel time for our delivery personnel. It is our
plan to convey our worth recommendation agreeing the attributes of every fragment and to make
a steady item position among the general compass of our community.
At the point when defining a showcasing structure within the community, we begin with
the biggest sections and work some way or another down. For the purpose of the crusade, the
business we will be focusing on are the bigger stores first and then work down to the smaller
convenient stores. Due to the hot temperatures, purchasers will be looking for a sound beverage
to extinguish their thirst while outside. Consumers are always looking for a healthy drink that is
refreshing.
Market Competition
A multifaceted organization that is known for items running from crisp natural products
to parfaits to sauces. Products offering new/solidified vegetables, crisp/solidified/canned/dried
organic products, juices and prepackaged smoothies. Dissimilar to Dole, our company juice has
the capacity concentrate on its four principle items; coconut water, squeeze, smoothie, and force
patio nursery juice. As a result of its more focused product offering, our company juice has the
capacity to produce a higher quality brand. Additionally, our company Juice is centered around
giving a more immaculate item as opposed to Dole whose timeframe of realistic usability is any
longer than Flavoured Fruity Fluids.
A high-controlled blender & blender framework. This does not liquefy vegetables but
rather does well with natural products. Stripped Juice takes all the work and issues you the final
item you crave without the majority of the experimentation. With the Magic Bullet you must
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buy, transport, clean and blend the foods grown from the ground in trusts it will issue you the
fancied taste. Conversely, Our Company Juice is devoted to issue you the right taste each time
without the bother.
Differentiation Strategy
Because of our company juice focused on the community, our costs must mirror the costs
of such. The most ideal approach to get to this target business would be to utilize a grocery store
system. Meanwhile, of our company juice reaches conveyance, popularity, and minimal effort of
delivering, and our valuing target best fits a volume objective. Exposed Juice will value their
items lower, choosing lower net revenues, and seek after a higher volume of offers with this
methodology. Exposed Juice will value their items contrastingly as indicated by size.
Albeit our company juice claims will prohibit it from utilizing certain "Natural" marks on
their jugs and our company Juice still prides itself on being a sound, regular refreshment. Our
names plainly state to the customer the amount of natural product is in every jug of our juice.
Bare Juice likewise incorporates vitamins outside of those included in the natural products. One
container of Flavoured Fruity Fluids can give a hefty portion of the vitamins that one needs in a
day. Our biggest quality recommendation for our incorporated showcasing battle will be
coordinated towards the foods grown from the ground amount in every jug. With every container
spoke to by physical quantities of every bit of natural product, we can adequately advance the
organic product strengthened fermented drink. Our item is cheap and a simple path for on-the-go
school understudies to verify that they are getting the servings of leafy foods that they require in
a day. Flavoured Fruity Fluids brand advances a sound and adjusted eating routine.
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Marketing Vehicles for the company
Flavoured Fruity Fluids advertising crusade, we felt there was no preferable occasion to
support over that of the 2014 ASU Undie Run. The occasion was made in 2008 at ASU and
gloated a participation of 5,000 understudies. In 2013, the occasion drew more than 15,000
runners and brought about more than 4.52 tons of garments being given. The idea is basic:
understudies appear to the occasion beginning area on the most recent day of classes, uproot all
garments other than their clothing, and run the chose course for a decent cause. Every single
uprooted material is given to those needing dress. To manufacture off of our crusades subject,
Flavoured Fruity Fluids adjusts impeccably to our message, strengthening our tense image while
making positive buzz around Our Company Juice.
Operations Plan
The operations of the Flavored Fruity Fluids encompass the equipment set up at the plant.
The machines that are set up at the plant for filling beverage bottles are equipped with the latest
technology. The temperature is controlled in the systems all through the plant for the equipment.
It is also monitored with the automatic reports generated for each hour. There are nine filling
machines that are set up in the plant. The consumers are addicted to the taste. The flavor in the
finally packed bottles of Flavored Fruity Fluids has to be intact and requires the intervention of
the team to constantly check the quality levels.
The computer systems which are attached to the equipment also aid in controlling the
filling and capping process at the plant. The requirement of the software has to be in place. The
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software for the plant caters to the requirements which are raised from the distributors for
Flavored Fruity Fluids. The distribution centers are located at greater distances.
Cost Effectiveness
The wear and tear of the equipment is a part of the process and in order to reduce the cost
linked to such a huddle. The annual maintenance contract is planned with the vendors who would
be provisioning the service for the machinery and the equipment at the plant. The cost of
transportation has to be reduced while the drink is being transported to the distributors.
Methodology for Increased Profits
While the Management is considering the options to have an effective control of the
production unit, the various processes, and the sub processes to run smoothly along with the
profit generation to be done for Flavoured Fruity Fluids. It is crucial to run shifts in the
operations and have the plant functioning 24 hours a day.
Competitive Advantage
The competitive advantage for Flavoured Fruity Fluids is well established with the
consideration of the effective supply chain management. The hubs set up at different locations
would enable the controlled distribution and effective temperature maintained for the drink to aid
in reducing spoilage. The use of optimum technology at the plant would help in the generation of
profits.
Problems Addressed
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The challenge faced with the use of current technology for the equipments require regular
updating of the software. Meanwhile, the needs of the software and hardware are to be met time
to time. The allocation of the resources should be done in an appropriate manner as needed
because it is necessary. The challenge linked to the operations is the level of efficiency and
productivity maintained at the plant. The equipment has to be monitored for wear and tear and
the quality related to the taste has to be maintained.
Technology Plan
Software Needs
The software is a requisite for the equipments required in manufacturing the drink at
Flavoured Fruity Fluids. Nevertheless, the software has to be upgraded at regular intervals. The
state of the art technology which forms part of the design has to be enhanced with the additional
sub processes added while manufacturing. We are planning to partner with the vendors who are
software experts and they would be assisting us and the relevant team in maintaining the current
version of the software.
Hardware Needs
The hardware need required at Flavoured Fruity Fluids has to be provisioned for the
production bay as well as the operations. The hardware which forms part of the equipment in the
bay and the operations area have to be networked. The local area network needs to be set up to
provide the smooth flow of the process. The centers linked to the IT department have to monitor
the machines and the hardware.
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Telecommunications Needs
The exchange of information has to take place between the units. This requires the
transmission of information from one department to another in the bay. The cables linked to the
network would ensure that the signal of the devices is set in place along with the routers that are
needed. The units are also linked to the distribution centers. The strength of the signal devices
and effective communication is ascertained by the relevant team.
Management Plan
Figure 1 – Organization Chart
Key Management & Employees
I will be serving as the Director. Winston Cooper being the Vice President (Operations)
has an experience of 24 years and has added value to the organizations he has served earlier. He
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has also served as a Vice President in Electrolux and managed Pan Asia. He is dedicated and
driven for success. Under his leadership, Electrolux grew by leaps and bounds. Their profits also
rose from 32% to 68% in a decade.
Den Johnson, Project Head has the responsibilities to take care of the project in the
organization. He has an overall experience of 17 years and more than 10 years in handling
projects. He has served organizations such as the following: Siemens and Motorola. His success
has been to the contribution he has made in the past when he was with the companies Motorola
& Siemens. He comes with greater recommendations and would serve as a key member of
personnel in our management.
Board Members and Advisors
The advisors and the board members pertaining to the business of Flavoured Fruity
Fluids have to be linked with a greater bond and work on the long term strategies. This can be
well accomplished with the structure which aids in the segregation of the various objectives
pertaining to the functional groups skills, opportunities of the employees, as well as the internal
and external stakeholders. They can be well utilized to meet the objectives and goals of
Flavoured Fruity Fluids.
Susan Lee, Vice President of Marketing has an enriching experience linked to the field.
She has the responsibilities to manage the marketing and the team reporting. She will be
responsible for running campaigns, exhibitions, road shows, and other marketing initiatives
under her leadership (Experian, 2015).
Management Structure and Style
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The Matrix structure pertains to Flavoured Fruity Fluids. The structure has the
advantages that the reporting relationships are unique and do not follow the traditional style. The
functionality enjoys greater independence and control. The structure also has the benefit of
enhanced communication and the relative skills pertaining to a functional group to be similar.
Commitment to Corporate Citizenship
Flavoured Fruity Fluids is a company that is committed to being a corporate citizen.
There will be jobs created for many people in the communities that surround Flavoured Fruity
Fluids. There will be jobs that can be obtained in the factory where the juice is being
manufactured, stocking grocery store shelves with juice, and delivering the juice to community
convenient stores. These jobs will allow the communities to grow and it will also bring forth
more customers. The people in the community will see that Flavoured Fruity Fluids reaches out
to the communities to employ rather than outsourcing to other places for employment. Creating
relationships with the communities around Flavoured Fruity Fluids Corporation is significant to
the success of the business.
Following the laws of every jurisdiction in the areas that Flavoured Fruity Fluids operates
is mandatory. All employees and owners of Flavoured Fruity Fluids will take courses every year
to obtain knowledge of all the laws. New employees will learn the laws in their orientation
course. Employees who have been there for a year or longer will have refresher courses set-up
about the old laws and new laws that may have been established in every jurisdiction. Obeying
the laws is very vital if Flavoured Fruity Fluids wants to remain a top brand in grocery stores and
community convenient stores.
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Employees will be treated fairly and Flavoured Fruity Fluids will always be honest with
them when it comes to company policies, discipline, and rewards. All employees will be treated
with the same respect and they will not be micro-managed. They will be hired to complete a job
and if they meet the qualifications, they will be expected to work hard and live up to those
standards. The employees will have the ability to speak with their managers and the owners of
Flavoured Fruity Fluids. There will always be an open-door policy for employees to address their
concerns, ideas, and opinions. This will show the employees that their voice matters.
Flavoured Fruity Fluids will have a diverse work force. During the hiring process, the
gender, race, or the nationality will not matter when selecting the best applicant to complete the
job. Flavoured Fruity Fluids is looking for a hard working person to ensure the job is done
correctly. There will not be any discrimination of any sort conducted at Flavoured Fruity Fluids.
This will ensure that when consumers are purchasing the product, they will not discriminate
towards the juice. For example, if there is not any particular gender, race, or nationality hired at
Flavoured Fruity Fluids due to discrimination, they could all get together and boycott Flavoured
Fruity Fluids. That would hinder business because this juice is for everybody to drink and
become healthier.
Company’s Activities
Flavoured Fruity Fluids will host different company activities such as barbeques in the
summer to celebrate consumer appreciation. There will be all types of food there and Flavoured
Fruity Fluids juice. There will be games for the kids and prizes given out to the community.
There will also be employee appreciation every month. One employee from each division in the
company gets nominated and recognized in front of the entire company and put in the
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community paper. The employee will also receive a free pack of Flavoured Fruity Fluids juice
and a certificate that states “JOB WELL DONE”.
Flavoured Fruity Fluids is going to be a Go Green company where we utilize all
recyclable products that will help the communities that surround the corporation. Flavoured
Fruity Fluids will have a recycle center at the facility and people who bring back the bottles can
receive $.05 per bottle, and $.05 per packaging, and a 10% coupon for recycling. Providing an
incentive for the people in the communities to recycle will generate repeat customers and help
out the ecosystem.
Company Issues
There will not be any health issues with Flavoured Fruity Fluids juice because it will go
through the United States Food and Drug Administration (USFDA) tests. The USFDA tests to
determine whether food or drinks are safe for consumers. There will be a message on the bottles
stating that the juice is FDA approved. This will provide reassurance for the consumers that they
are partaking in a healthy and safe beverage. The ingredients will also be provided on the label of
the juice bottle. This is so that consumers will be aware of what they are drinking and if they are
allergic to any of the ingredients will be informed by reading the label. The strategy that
Flavoured Fruity Fluids will utilize to mitigate any negative issues would be ensuring that we
have an attorney to represent us as well as a Public Relations representative. This will ensure that
any negative issues will be handled for the better good of the company. The attorney and Public
Relations representative will also ensure any positive claims remain true and publicized on the
following: social media, radio broadcast, community newspapers, and on television commercials.
Company Advertisements
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Flavoured Fruity Fluids will not have any negative impacts on the population who
consumes the juice. This juice is healthy with all natural fruits. This juice is healthy and will
benefit all of those who drink it. The method that Flavoured Fruity Fluids plan will be advertised
will be through social media, radio broadcast, television commercials, and coupons sent to the
residents. Flavoured Fruity Fluids will be distributed to grocery stores and other community
convenient stores by the way of the company truck. The company truck will have the brand logo
on the side of it so that people can see what is being distributed. Through these methods, the
masses will see what this product is all about and their curiosity will have them wanting to taste
this healthy juice. Once it is tasted by a few people, they will start to tell individuals they know
about how good the juice is. Word of mouth has been and will always be the best form of
advertising.
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