Assignment 2: Marketing Plan

Running Head: COMPANY ANALYSIS 0

Company Description and SWOT Analysis

Student’s Name

Institutional Affiliation

Q #1

The McDonald Brothers is a NAB firm that provides frozen drinks including desserts, soft drinks, and milkshakes, manufactured from the fresh raw materials from the local farmers. The company can produce its beverages from a mixture of different flavors of fruits.

Q #2

The McDonald Brothers is a firm that supports and encourages lifestyles with by producing tasty and healthy beverages from fresh ingredients. The company’s mission is to enhance diets through the creation of flavorsome beverages that is made up of tasty and healthy raw materials such as milk, fresh fruits, juices, and vegetables. Through making of frozen beverages with nutrients from varieties of ingredients, the company ensures a nourishing and balanced diet for the consumers. The firm is aimed at using ingredients from the local farmers to enhance our social responsibility and also to support the activities of the local farmers. We are also focused on becoming a regionally known firm that capitalizes on the individual and families’ interests by making beverages as per the taste and preferences of the consumers. The company is at startup stage.

Q #3

Trend

The use of non-alcoholic beverages has tremendously increased in the country in the last few decades. This is because the population has shown a lot of concerns about their health. Most of the Americans have turned to be very sensitive to the needs of their health. They are also aware of the dangers of alcohol in the body. The majority of Americans have changed their consumption habits whereby they skip meals, and they only depend on snacks as perfect substitutes. Vigorous campaigns against alcohol have been held across the globe by various organizations, and this has enhanced the production of non-alcoholic beverages due to constant switching demands of the population. The McDonalds drink will, therefore, help the consumers as it is hangover free and the drivers can also drink it and drive. With the above qualities of our beverage, we expect to expand our markets to various regions globally at the rate of 15-18%. We expect to achieve this through market research to increase the qualities as per the customers’ tastes and preferences and also to create awareness about our brands to different potential consumers. The research conducted by Mintel indicates that approximately 56% of Americans consume snacks

The three reasons for choosing the McDonald Brothers (smoothies firm) is because it produces healthy beverages. The other one is because the products can be substituted for snack or milk and the last reason for choosing McDonald's is because the beverage is easy to make and portable. With the simple procedure of making smoothies, if one has the right tool, he can make it anywhere.

Q #4

Strategic position for the beverages

The main goal of the Company is to be the leading producer of non-alcoholic beverages in the country. For us to attain this goal, we came up with strategic position that focuses on;

• Utilization of the local raw materials

• Green production

• The market taste and preferences

Our strategic position will mainly focus on the evaluation of the following factors;

• The current trend in the industry

• The company strength and weakness

• Our target market

• The environment of the product

Product differentiation will be the most effective strategy for our company. This will enable easy distinction off the product from the competitors’ products in the market. Achievement of an effective differentiation can be done through having a unique pricing and packaging. The company would not use too low prices because it can create a cheap impression of being low quality.

Q #5

Overview of the firm’s channel of distribution

The firm will use a combination of various channels to distribute the beverages to the final consumption point. The local retail stores will be the first outlets e.g. supermarkets. This will enable to buyers to access our products easily. The beverages will also be available in local food joints including hotels and fast food restaurants. This will enable the company marketing department to access the feedback about the consumption trend easily and make necessary decisions. The company will also sell directly to the consumers. The product ordering would be done from the company website or via toll-free calls.

Q #6

Risks

There are financial risks related to the production of smoothies. This involves cases where the drinks fail to bring the expected returns due to low volumes of sale. Buying the raw materials from the local farmers may expose the firm to some risks. This is because these raw materials are more dependent on the prevailing climate and the quality of the ingredient may reduce due to unfavorable climate. This can drive away customers because of the change in taste. The regulatory risks may be related to the fines charged when the low-quality ingredients lead to the manufacture of products that do not meet FDA guidelines. This can even lead to the closure of the company. The competitive risks may happen when the stiff competition lead to the reduction of prices that do not reflect the operational costs.

Q #7

SWOT Analysis

Strengths

• The company produces healthy smoothies with different flavors

• Readily available local ingredients

• Monthly offers

• Qualified staffs; dietician and skilled chefs

Weaknesses

• Lack of knowledge about procedures for freezing

• Lack of sufficient capital, the company is at startup stage

• Lack of much differentiation from other products

Opportunities

• Increasing health awareness of people about health

• Low barriers to market entries hence it can access diverse markets

• Mobility options for food truck

Threats

• Stiff competition

• Unstable climate affecting the qualities of ingredients

• Unstable prices of ingredients

References

Beverage Industry | Trends, Formulations, Technology & Products. (n.d.). Retrieved from http://www.bevindustry.com/

Blacker, S. M., & Chadwick, R. G. (2013). The erosive potential of smoothies. Vital, 10(3), 30-35. doi:10.1038/vital1684

Global Smoothies Market to Reach $9.0 Billion by 2015, According to New Report by Global Industry Analysts, Inc. (n.d.). Retrieved from http://www.prweb.com/releases/smoothies_market/frozen_mix_smoothie/prweb3808804.htm

Smaller food and beverage firms dominate manufacturing in Myanmar. (2015). doi:10.1787/9789264220577-graph8-en