Week Ten Online Discussion " Strategic Management"

Eden Beverages

Executive Summary

Eden Beverages is a non-alcoholic beverage, limited liability company (LLC) developed in the Maryland area. It’s a business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation. (McCormick, n.d) Eden Beverages desires to develop and distribute an all-natural healthy beverage, bringing forth the best from nature. Eden Beverages does not seek to be a just another drink on the market, but a trendsetter. The drink will contain no added sugars, no preservatives, no artificial coloring, yet contain a blend of organic grown fruit and vegetable. This product will focus on the benefit of healthy consumption, with focus on providing the natural supplements and vitamins in a beverage to those consumers who are health conscious. Those consumers seeking a beverage of added benefit to their health goals with no fears of harm to their body due to chemicals. The goal is to have a customized recipe with premium quality fruit and vegetable, to be distributed in a glass bottle. The product will be unlike any other in its position in the market as its goal is to be all natural as not to compete with beverages containing sugars, or preservations. The growth potential to expand in the future with varing bleeds of fruits and vegetables as currently there is only a slight hint of these ingredients.

The consumers who are health conscious seeking a healthy tasting beverage will be targeted.

Eden Beverage seeks timely distribution to market, short storage and shelf time putting the beverage in customers’ hands with no threat of consumption, quality of the product, or the environment. In seeking to improve the overall health of society, it is the vision of Eden Beverages to distribute a drink with quality ingredients to customers without sacrificing the quality in the process.

A start up business founded in January of 2017 by the creator, master mixer, and owner of the patent, Melinda Cates had this vision over seven years ago when she started promotions at County Fair. The business with start out under the leadership of:

Management structure

• Owner- Melinda Cates, the NAB owner

• CEO

• Production Line Foreman- Ian Glass

• Paid Consultant -Mary Cates, JD

Developing a strong mission statement and company values are the first steps in the impact of the business. The core values start within management and is relayed down to all employees during start up, orientation, and through continued professional development. Eden Beverages will seek out, well-established companies, such as Honest Tea to learn from and partner and participate in community projects together. Eden Beverages will position itself to form alliances with other companies who share the same or similar values and are focused on achieving the same type results for healthier consumers and environmentally safe community.

Eden Beverages is concerned about the environment and with the chemicals and other raw material use. The company intends to be a green company Eden Beverages will implement the use of non-harmful items even in the workplace, such as energy saving light bulbs, solar powering of the facility. With consumers becoming more health conscious and educated on health concerns from food and beverages, they seek to a product that will not add ill effects of high sugar content, artificial sweeteners, and other harmful ingredient in products that they digest. Eden Beverages believes consumers will seek out this drink for the healthy option it provides as they seek to injest healthy fruit and vegetables in a beverage. By marketing the beverage as a “healthier” alternative, Eden Beverages will not be in competition with the smoothies, sodas, teas, or select flavored water drinks.

The beverage concept comes from consumers becoming more health conscious. The company will balance quality and pricing while maintaining customer satisfaction. Living a health conscious lifestyle is a growing trend that many consumers take very seriously. Consumers look for a great tasting beverage but most importantly one of convenience, unlike smoothies but one that serves a need, a purpose, or a goal in helping to sustain a healthy lifestyle for consumers. Since more and more people are seeking healthy options in food and beverage, this drink will stand out over the market to get those consuming who don’t want the added sugars which cause them to be sluggish or unhealthy. The product will survive in the market as it will not be a carbonated soft drink, it will not be just another smoothie, yet bottled in glass, so as not to harm the environment. All effects of the beverage are to provide a better quality of life. Consumers are looking for a product that is healthy, period. There is a strong potential for this product to succeed within communities where potential health gurus demand a healthier drink. The glass bottling will help with the shelf life and pose no risk of contamination to the environment (Learn about Glass). Glass has no harmful chemicals such as BPA, phthalate, PVC, or polycarbonate, so no dangers of anything seeping into the beverage. Glass is the only packaging material generally regarded as safe by the U.S. Food & Drug Administration (Why Glass). Glass is better for the environment: made from all-natural, raw materials. Glass is 100% recyclable and is just as portable as plastic. The ingredients, such and fruit and vegetables, all being natural will pose no harm to environment either when decomposing waste.

Eden Beverages will work to securing contracts with whole food companies, health food stores and their affiliates like nutrition bars inside gyms. The product will be marketed through trade shows, direct mail, advertising, social media, through high level of distribution in wholesale food stores, convenient stores and other health food venues. The competition would be any beverage company looking to provide consumers with an energy drink, or smoothies, and teas. Eden Beverages will be competing against companies who are looking to provide consumers with a refreshing healthy drink that has less sugar than current drinks on the market. This is a factor since most consumers do not study the products they consume well enough.

Eden Beverages expects to be a successful company! In order to be competitive, Eden Beverages needs to obtain financial backing to help the business. Seeking Investors who have knowledge in the industry is a major thrust for the company. Eden Beverages will seek funding from loans, and financing to start up the business. There is $20,000 in seed money that was collected from friends and family to help in the vision of the business. Minimal funding from Presales set aside from the inception of the recipe from the owner will be contributed as well. Expenses needs to focused on operations and production (utility expenses, salaries, inventory, marketing and promotions. The company projects rapid growth and will focus on reinvestment of income for expansion rather than profit taking, funding growth internally rather than through additional investment beyond that currently sought. These funds will be utilized to add a new training center, hire staff, and expand marketing activities. So for expansion, distribution, and growth into a booming market, Eden Beverages is seeking investors for a combined investment of up to $1 million profit share by the third year.

Company Description

Eden Beverages is synonymous to the Garden of Eden, which represents earth in its purest form. It is depicted as pristine, paradise-like and abundant in natural beauty. The Garden of Eden represents a period of perfection when everything was simple, and there was nothing to worry about. Everything was in its purest form, thus no chemicals added to fruit or vegetables.

Eden beverages will be the forefront of creating a healthier society, bringing a sense of peace like in the Garden of Eden. The ingredients used will be all natural, bringing forth the best from nature.

Eden Beverage mission statement is "To Improve the Overall Health of Society, One Serving at a Time." The statement is based on the concept that the consumers are looking for healthy products that taste well. It informs the consumers that the product is going to satisfy their health needs, with natural ingredients. In a time where more consumers are becoming more health-conscious, the beverage appeals to the masses. Mainly containing organic fruit and vegetables, the product will contain no additives or preservatives. Containing no unnecessary added sugars, a serving would enhance the health and well-being of consumers. The beverage will serve as a source of nutrition or as a meal substitute for people on the go. The beverage is for health conscious drinkers of all ages, who are looking for healthy choices. The company seeks to provide a quality beverage that refreshes the world by inspiring consumers on their health and wellness journey, at an affordable price. The drink will be packaged in glass containers so as to expand shelf life, and because glass poses no harmful risks to consumers or the environment (Learning about Glass, n.d). Eden Beverages seeks to provide a healthier tasting beverage the way nature intend it to be. We strive to build healthy relationships with the customers, employees, suppliers and stakeholders.

Industry Analysis and Trends

The analysis shows strengths, weaknesses, opportunities and threats. This SWOT analysis of Eden Beverages can provide a competitive advantage.

Strengths

• Debt free start up inventory

• Established recipe for drink with previous sales

• Low overhead cost

• Experienced professional

• Increase demand for health beverages

• Customer loyalty

• Current inventory and supplies

Weaknesses

• Late entry into market

• Limited financial backing

• Cost for startup

• Established distribution channels

• Supply demand (seasonal)

Opportunities

• Expansion of Flavors

• Strategic Partnerships

• Product Improvement

• Rapid Expansion

• Loyal Customer Growth

• Healthy Option

Threats

• Outsourcing/Offshore Supplies

• Regulations

• Natural Disasters

• Product differentiation

• Competitors with like products

A major strength for Eden Beverages is that company provides an all-natural product, at a low cost. Beginning with strengths, one is that the company has start-up inventory and capital to proceed. The product will operate in the expanding market segment. The growth will be influenced by the changing preferences of consumers (Jackson, 2013). An added strength would be customer loyalty because they would continue to purchase due to the offering being unique. Having sold the product for seven years we are aware the product could be successful.

Eden Beverages main weakness is mass production requirements. If the product grows rapidly, due to consumer desire, the company may not be able to adapt due to limited capital. Even though the company has some seed money and some equipment, investors are needed. Having limited funds hinders the potential of the product. If the products are not available for production, or supplies are not of standard quality there could be issues for the product as well. Fruit and vegetable are seasonal, it may hinder production. A weakness could be the cost in manufacturing since the products are organic and packaging is glass. The cost may be higher for production and bottling.

Eden Beverages has opportunities such as joining in on an already established industry to help penetrate a market that has a major demand for the product supply. The company has a chance to rapidly expand its operations and market share gaining a more loyal following. Customers seeking healthy lifestyle need and desire a drink as such. Eden Beverages has the opportunity to take over the small, new market fast due to the health aspect and packaging method. New acquisitions can come from this as not a lot of healthy drinks are packaged in glass bottles. This could also increase the number of health conscious consumers while helping to ensure a healthier environment.

Threats of Eden Beverages would be issues of regulations and production. The rules and regulations that must be adhered to and the production level to ensure that the beverage contains safely blended ingredients so as not to have any harmful ingredients such as the sugars and added preservations. If a natural disaster occurs where the environment, soils, farm land, supplies of fruit and vegetables are not able to be manufactured this could cause a major problem for the industry. Also, there is the potential threat of outsourcing and offshoring supplies. Another threat could be the difficulty in winning over the market, being that there are so many competitors with similar products. Another threat is competition. Competitors are providing a similar product to consumers, so it may be difficult to lure new consumers. With so many consumers use to grabbing a beverage full of sugar, added preservatives, artificial sweeteners and other harmful ingredients, the lure may not be as grand or as convenient as projected for all, yet only those seeking the product.

The natural beverage industry is continuously developing drinks as consumers need a variety of healthier choices, at a decent price, and added convenience as they focus on their lifestyle. Major trends for the industry are the growth of energy, water, and sports drinks brands, reworking recipes, and bottling size. In 2016, healthy beverages emphasized more on positive health benefits, by cutting calories, sugar, or sodium. (Taylor, 2016)

Such drinks that promise energy and nutrition are being manufactured with fewer ingredients and fewer less calories. Beverages made without preservatives or additives are quite attractive to the market. Adapting to the demand of the healthy citizens by using organic ingredients helps manufacturers face concerns of using healthy alternatives for its consumers.

According to Business Insider, the growth of energy, water, and sports drinks brands is making the consumers more prone to purchase due to the nutritional value. Companies are reformulating their beverages with fewer calories and serving smaller cans and bottles without changing the ingredients. The American Beverage Association has pledged to cut calories by 20% by 2025 (Taylor, 2016). This global beverage market continues to exceed the $1900 billion mark. The products include juice, dairy drinks, nectar drinks, coffee, fruit powders, energy drinks, beer, wine, and other spirits (Jackson, 2013). In 2015, the market reached a 65 billion liters mark. The companies adapted to the growing demands of its consumers by adding ingredients, including vitamins and minerals (Meyer, 2014). The fruit and vegetable ingredients in drinks are creating an important market segment thus meeting the demands of the consumers who have become health conscious.

Target Market

By definition, the target market is the group of people whose needs match the product or service and subsequently, to whom the products or services it to be marketed to (Target Market Characteristics, 2016). The characteristics include demographic factors such as income, geographic factors such as region, and psychographic factors, which includes studying the lifestyles, values, and overall attitudes of the consumers. Determining how often customers need or will buy a product and how likely they are to return to the same store or company affects their shopping habits and the marketing tactics. These things effect how well a product will fit, and determines the advertising, placement, and packaging. (Abrams, 2014)

Eden Beverages will target identified groups in hopes of creating a “family culture” for the product. This group would be identified by a culture-keying in on active families, who seek a healthy, all natural beverage. For the parent who is health conscious, and wants to ensure that their children are receiving healthy drinks without added sugars or added preservatives. Those two or more person family households with gym memberships and children participating in extracurricular activities could be the main targets. Those who exercise have lower stress levels and tend to do interesting things. People who exercise are more likely to live in safe neighborhoods, and are satisfied with their work. They are more likely to feel well rested and have more energy, and are less likely to be diagnosed with a chronic condition. Eden Beverages would be exactly what they need. (Rudloff, 2011)

Essential to the success of Eden Beverages is the target market. The 25-mile radius will encompass the area of Maryland, Virginia, and Washington, DC. The locations include for MD; Germantown, Capital Heights, Rockville, Gaithersburg, Frederick, Annapolis, Landover, Ellicott City, Columbia, Laurel, College Park, Beltsville, Bethesda, Silver Spring; and for VA; Dulles, Chantilly, Alexandria, Falls Church, Reston, Vienna. (Census.gov) The 25-mile radius has a population of 1,752,085. While seeking this area of consumers, the reach will be to those individuals who health conscious, these individuals are more prone to research and know health risk and factors. All age groups would be targets yet research suggests those persons between the ages of twenty-five and forty-five years are more active in exercising and eating healthy. The population of employed is high with a substantial income for at minimum $15,000 per year and up. Its noticed that a family of two working adults ranging between, 65 to 97,000 in this area is more prone to be health conscious. (Census.gov) The number of people without health insurance in the health category is relatively low in the area at 10.62%, which explains that there could be approximately 89.38% health conscious persons and at least covered by medical insurance getting their physical checkups. These are those who would be more prone to consume a healthy drink.

All ethnicities are likely to partake in the beverage even though racial/ethnic disparities in exercise and dietary behaviors appear more noticeable with middle-aged, acculturated minorities. Results highlight the need to promote positive exercise and dietary behaviors during critical preventive ages, when racial/ethnic disparities are large and the potential to prevent chronic disease is great. (August, 2011) Ideally, the consumers are those family members (parents and children) seeking a healthy, no added sugar drink, and who have busy lives needing something quick to aid in their well-being. Perhaps they set out to the gym before, or after work, between hustling the children off to after school events or recreational events on evening and weekends. The drink being all natural would be useful with an evening snack or at meal time as well. These individuals live in family friendly communities, with convenient shops, and healthy food stores, in which they frequent. Wellness centers, with gymnastics, watersports, spas, and daycares are places of target since many families use these facilities for evening activity.

When marketing to whole foods, it’s important to understand that the sales for organic drinks topped about $43.3 billion yet now there's a lot of competition. The driving force behind this growth, is more millennials are seeking the beverages: consumers aged 21 to 35 are the largest buyers of organics, and they're the most likely to consider themselves "knowledgeable" about their food, now more mainstream grocery chains adapting and carrying the brand. (Dewey, 2015) Eden Beverage would not only target Whole Foods but Mainstream distributors alike.

Competition

There was water, which should provide everything the body needs to replenish the fluids it loses. Then milk, beer, wine, coffee, and tea came into play, as drinks for taste and pleasure. Then soft drinks, sports and energy drinks, to help the body. Next healthy drinks. With all these choices it is hard to determine what might be the “best” for consumption. (Healthy Beverage Guidelines, 2015) Eden Beverages is competing against companies who are looking to provide consumers with a healthy drink that has less sugar than current drinks on the market. Eden Beverages will not market on taste but on health the drink being refreshing, from the natural sugars found in the fruits used.

Using a model similar to other start up companies, like Honest Tea and Naked Juice, promoting on the principles of no added sugar, all natural, with a hint of fruit and vegetables will serve as a healthier option for many consumers, is the belief for Eden Beverages (Cameron, 2016). Eden Beverages would be set apart from competitors by using a strategic approach that was a weakness of Naked Juice, which is that they are uncertain of their consumers, and unclear about what the ingredients and priced the drink too high. Eden Beverage will know its consumers by the offering, the need and desire. Above, I listed the type of people who would seek Eden Beverages, to marketing in the areas of need would be a must for Eden Beverages. Placing the drink in community stores, at gyms, sporting events would gain the most popularity. The branding will grab the attention of those fast paced lifestylers. Another factor that affects Naked Juice is they had a major lawsuit against Pepsi Co for the misuse of the term all nature, which ended in a $9 million settlement that left bad exposure for the brand (Website Article). Eden Beverages will be true and honest about its product and labelling, which will explain the ingredient percentages true to date. The beverage will not be misleading for the health consumer. The products will be locally raised and maintained, bottled in glass so no more additives. With locally grown products, fruit and vegetables would make it more diverse for distribution. The pricing will remain low making the demand and desire higher, the niche of coupons helps consumers reach for it more. It’s noted that Wal-Mart even carries a brand and Costco sells organic produces which are considerably cheaper than natural food stores, farmer's markets or Whole Foods. So lowering price would be a primary strategy for dealing with competitors. (Dewey, 2015)

Strategic Positioning and Risk Assessment

Since Eden Beverages will concentrate on the production of healthy products, the brand intends to introduce the product at a comparable rate to other brands in the market, yet distinguish itself by its look and name because of its ingredients. Advising through its image that the product is all natural will help it stand out from other players in the market. The product will be positioned in store fronts, as a drink that will grab consumer attention. Those customers who are college age, young adults, who exercise and perhaps are in fitness groups. This group consists of individuals who remain on the go, working class, seeking a quick nutritional drink with added value for their goals.

Eden Beverages will utilize print as the first leg of advertising. For starters, pamphlets, articles, and flyers print media to introduce the product to the market. The information will explain the decrease in added sugar and consumption of caffeine will serve buyers well. The information will be posted at nutritionist office, health food stores, at local health centers like gyms and spas to help the product gain the familiarity.

The company will for starters seek partners for visibility by presenting banners, ads, and advertisements on other health sites, like vitamins from GNC, health food stores, and gym membership pages. Online advertising will be done through blog discussions, YouTube promotion video, Instagram pictures, Facebook page, and the company website.

In order to target health conscious consumers, the product must speak the language of the consumer – It’s healthy. Explaining in simplest form the contents and benefits will help the product and as well as keeping the cost low. I believe the Lean Start Up method would be the best launch approach for the product (Abrams, 2014). The product, while similarities are already in the market will still grab customers’ interest due to demand for various alternatives. The core component for lean start-up is identifying the concern, build, measure and learn from it. The goal is to provide value. The customers would test and measure the product comparable with other offerings based on taste and ingredients.

Non-Alcohol Beverages hold contributing factors to many health issues such as cognitive health issues for all ages, obesity, diabetes, and artificial ingredients. Eden Beverages intends to provide a drink that contributes less to these health issues. After all it contains no added sugars, and is in its purest form with fruit and vegetables. The drink could be consumed by anyone. The beverage will not be carbonated, not contain, caffeine, no artificial coloring either. The hope is the drink works to improve health issues across the board for our consumers.

Understanding that knowledge is instrumental in maintaining good health, we plan to help consumers understand that having all natural products is more beneficial than any additives they may digest. The natural flavors from the blend of fruits and vegetables will give the drink flavor. Eden Beverages will present information in pamphlets, blogs, and websites about the effects of drinking sugary, flavored, and carbonated drinks related to health issues. Consumers would note that they would not be as sluggish after consumption. The product could be consumed by children and adults alike. The nutrients could be compared to those of competitors, like smoothies, flavored waters, sodas, and tea. The hopes would be that Eden Beverages is presenting a recommendation for reducing overconsumption of sweet, artificial flavored and carbonated drinks.

Eden Beverages has the hope that consumers, who exercise regularly and are living healthier lifestyles, will take heed to the nutritional value of the drink. The company will seek nutritionist and medical professionals for insight to share about the benefit of the drink. The ultimate goal is to earn the trust and belief of consumers that the beverage is indeed a source for healthier living. The trust gained serves as customer service and feedback concerning the product and gets more and more people looking at the drink.

Regulation is important in any business and could be the biggest risk. There are rules and guidelines that must be adhered to, which are set forth by the health and safety commission. The U.S. FDA places regulations on food, beverages, and dietary supplements intended for consumption by humans and animals, per the government established website. Safe guards need to be placed so litigations over use of unsanitary fruit and vegetables are not an issue for the company. Handling precautions would need to be practiced. Farm hands, employees, safety inspections, and monitoring are important for production. Using reputable distributors is also important so as not to be using too many different places to get the products, resulting in chances of getting pesticides mixed with good quality produce. Study of USDA and FDA regulations would be needed to ensure that all guidelines are met (www.fda.gov).

Eden Beverages must follow the rules so as not to face claims about ingredient tampering or being harmful to consumer health. One way could be through the labeling and packaging. For example, through packaging the beverage serving in a glass bottle, the continents and ingredients will be a great benefit compared to consumption of the beverages from plastic or cardboard drinking containers. Glass bottling ensuring that the ingredients within the glass are kept fresh, doesn’t lessen its ingredient strength or lose its flavor. Since the product is all natural, there is no chance of harmful chemicals from the plastic bottles to interact with the ingredients of the drink. Glass packaging is trusted for health, taste and the environment. It is also the only widely-used food packaging granted the FDA status of “GRAS” or generally recognized as safe. (Learn About Glass, n.d.) When consumers choose foods or beverages that are packaged in glass, they avoid potential risks while enjoying a number of benefits. In the event of contamination or unsafe storing/packaging, the company could face scrutiny and could face penalties.

Another risk would be competition. The competition will remain high as needs change and growth, and many will likely produce products that are similar. Knowing what is appealing the consumer, what is a needed from the beverage as consumers needs and wants to continue to change over the years. Due to this, it will be important for the company to conduct more research to identify all key preferences of consumers and as such create products, which are more appealing to the consumers (Jackson, 2013). Eden Beverages plan to develop a beverage which offers more benefits to the consumers compared to the existing companies.

Marketing Plan & Sales Strategy

The marketing vehicles for branding will be through methods: Printing circulars and brochures for mass mailers and for distribution about the all-natural product. Other advertising can be in print form at nutritionist office, health food stores, circulars, and taste test stations inside large grocery chains or warehouse markets such as Sams Club, Costco, or BJs.

Also having the drink in massage parlors, when a customer is relaxing waiting to be pampered they can help themselves to a Eden Beverage instead of a glass of water with lemon. When clients taste, they can complete survey/pamphlets. Making arrangements with juice bars inside gyms will be a positioning tactic, for taste testing. Also advertising will be through local sponsorships with community events such as Amateur Athletic sports for school age kids, where the product can be distributed. Pamphlets and fliers can be given out for more information on where to purchase. This will promote the general image of the business as well as the visibility of Eden beverages. Advertising could include banner ads, where potential consumers can click and data be collected. Sponsorship opportunities can help the name and image be printed on t-shirts as sponsors of events like 5k races, or triathlons.

Eden Beverages marketing will be done through free advertising using Social Media sites to gain attention, through customer opinion, pictures, description and information. Social media use for advertisement is a current trend for many companies. Such sites may be Google, YouTube, Facebook, Instagram and event Blogs.

There are approximately 11 local radio stations in the Washington DC metro which includes, Virginia and Maryland. Per commercial cost, a fee of $396.00 for a 30 second ad would be needed. There would be a significant increase, which could be more beneficial for promotion during peaks times of the day (Radio Advertising Cost website.) Imagine hearing the ad on the radio of Eden Beverages, changes lives one serving at a time, advising that Eden beverages will be the forefront of creating a healthier society, bringing a sense of peace like in the Garden of Eden, early morning when families are headed to take children to school and work, and in the afternoon when they are picking up the student and heading to gym or after school events. Advising as no sugar added and it contains fruits and vegetables, as a consumer drives home from a long day of work, contemplating what will be for dinner as they hurry the children out of the vehicle to sports events and make a mad dash to the local whole food store. Eden Beverages would eventually expand to all the Washington radio stations.

Eden Beverages may even purchase a few vending machines to maintain. Proper licensure to operate the machine will be required and leasing of a vehicle to transport the supply during start up at a few locations. Such locales as convenience stores, pharmacy stores like Walgreen and CVS to name a few would be great places. While profit margins are lower, manufacturers/vendors can benefit from improved cash flow.   This strategy helps with global expansion operations (Abrams, 2010).

By supplying a beverage that meets the consumer needs ensuring that the consumer has a convenient and refreshing product. Offering a healthy alternative to create a better lifestyle one drinker at a time. The product will be of high-quality to meet the client’s expectations for healthy consumption, with no added sugars containing fruit and vegetables. Eden Beverages promises to offer an affordable product to all customers. Beverages will price its product somewhere between the price point of water and higher sodas. The range I notice if $0.99 to 2.99 for a drink. The price of Eden Beverage will be $2.00. When coupons come into play the amount will be less at nearly $1.50. The price point will not affect the day to day cost of living for consumers. The all natural beverage will be available in the stores at registers counters for added notice and convenience. Customers will be able to purchase our product any time of the day or night. Eden Beverages will offer unique brands for the customers. The company will hire professional personnel with excellent customer service. The purchase and consumption leaves the consumer with a feeling of satisfaction from choosing a healthy option. Whether it's driving down the road, sitting watching their children after work, sharing a drink with the child after having participating in a sporting event, or just after a rigorous workout at the gym. The company will produce high-quality drinks that will in turn boost productivity due to the consumer need. Consumers will share the word about the product, and share with their children and other family and friends for added promotion. The company will also expand in more territories to expand world wide and eventually internationally.

New products are developed daily and saturate the market. Eden Beverages will not be afraid and hide behind any others product, as did Honest Tea. This product is needed and staying connected to the consumers gaining feedback, seeking what they need and want will allow the product to remain relevant. Today with so many health conscious seekers and the stigma that it’s expensive to be healthy, will be an added bonus to have a drink that is at relative cost to consumers so that they aren’t afraid to grab for convenience.

By selling the product to major distributors; for specialty shops like all natural supermarkets; food service distributors will get the product into local gym locations, and convenient stores; wholesalers and warehouses who help with chain supermarkets distribution (Beverage Distributors, n.d.). The focus is more on the product ingredients and availability and let the distribution company focus on fulfillment which potentially could save time and money in the long run. They will take a change on the Eden Beverage because of the need for the product, knowing that more and more consumers are becoming ,ore health conscious and its not a product that is already out.

Operations Plan

The aspects of the startup business is that Eden Beverages has current assets already. There will be added maintenance to the items, which include two Accutek AccuSnap Capper Bottling Machines, two NAB Mixer Beverage Filling Machines, four vehicles, three computers, and a facility, which was left to Melinda Cates, owner, by her uncle, Bill. The facility is large enough to accommodate the operations for current production and has the capacity for expansion. This would allow Eden Beverages room for advancement for future sales goals. In owning the facility, there is greater opportunity in securing financing using this asset/real estate as collateral. Otherwise, banks and credit unions might be skeptical to lend since there is no stable sales/income history. Banks will require these assets and real estate to be listed. Eden Beverages would be able to borrow and continue production, while waiting on growth in accounts receivable.

Eden Beverages will be a trendsetter, focusing on customer feedback to improve the product. The goal is to use moderate to premium quality fruit, a simple customized recipe, timely distribution to market, and a shorten storage to shelf time to place the beverage in consumers hands as quickly as possible, without sacrificing the quality and nutritional value.

Eden Beverages feels that cost for operations can be one of the biggest factors for loss as well as one of the biggest opportunities for savings. Within a production environment, wastage needs to be controlled. Eden Beverages will need to find strategies to think quickly using the resources and people on hand and take measures to reduce cost. This could be done in deadline deliverables. Valuable time will need to be placed on training the staff so they are relevant and productive in times of increased and decreased in demand for products. This could affect production, and resale tremendously, as we want to be able to be productive at all times. Eden Beverages would need to study and evaluate processes of the labor force. Knowing when to save on labor cost, remaining at a high level of quality control and safety would need to be factors taken into consideration.

The distribution channel for Eden Beverages will be tested as well as a startup company, Having two vehicles, and a facility with minimal equipment to begin production will be a great benefit. The water quality for sanitation and cleaning needs to be adequate in the building. The machinery will be properly maintained, cleaned, and tested by the staff with maintenance checks until the company is able to grow and send production out to a manufacturing company. A food service would be the better option for getting the product into stores on the large scale in the future. (Beverage Distributors, n.d.). Eden Beverages needs to focus more on the product ingredients and availability and let the distribution company focus on fulfillment which potentially could save time and money in the long run.

Preservation of the product will be important. Glass bottling ensures that the ingredients within the glass is kept fresh, doesn’t lessen its ingredient strength, or lose its flavor. Since the product is all natural, there is no chance of harmful chemicals. When consumers choose foods or beverages that are packaged in glass, they avoid potential risks while enjoying a number of benefits. Being made mainly with water, the fruits and vegetables must be well-blended and meet shelf life requirements. The U.S. Food and Drug Administration (FDA) states shelf life of water is indefinite! (How Long Do Drink Last.) With a hint of fruit and vegetable blends, the beverages can last from weeks to months depending on a variety of factors such as the type of juice, the best by date, how the juice was stored, and the packaging. Most juices are high in vitamin C, and can substitute as a serving of fruit. Juices which are all fruit will spoil sooner than juices with added sugar and preservatives as the natural sugars in the fruit will begin to ferment over time (How Long Do Drinks Last). This is why Eden Beverage will contain no added sugars.

Having quality control procedures in place will help Eden Beverages when it comes to issues of facing product recalls or place consumers at any type of risk from poorly made products (How to Ensure Production Quality Control). Eden Beverages strives to use local farm grown products as well as have maintenance in place for equipment. Operators of the equipment will be trained to monitor the manufacturing process. The ingredients and raw material needed will be acquired and inspected, cleaned and stored. Fruit and vegetables will be fresh, may require refrigeration for storage since it will be provided in bulk until used.

Eden Beverages assembling of the product will consist of shift work hours to continually have production to meet company goal of creating $1M in revenue. The estimated cost for 10 employees falls between the range of $50,000 and $250,000. Eden Beverages will need to share the cost of health insurance with full time staff. Eden Beverages forecast salaries an initial problem. Companies incur debt initially from hiring, training, and getting production started. It’s indicated that CEO, has no salary for first six months. There is a $20,000 in seed money that was collected from friends and family to help in the vison of the business. Once up and running, there is an expected annual salary of $50,000. It is also noted that Melina Cates, the owner will forego a salary for the first year, and will utilize her savings to maintain her standard of living. For starters, CEO and President will work together to present the company and handle the marketing and operations until growth allows more people. Ian Glass, who serves as a volunteer, and brings valuable experience to the team, will work in startup until Eden Beverages can hire an experienced production line foreman to guide and support the staff. Stephen Job will be paid $15 an hour for part time computer expertise. Negotiation of $20 an hour to the consultant Mary Cates for the knowledge and information she brings to the company as a startup company. Future expansion shows that an administrative person will be in place later.

Technology Plan

Eden Beverages technology plan will address the day to day needs while positioning itself for future expansion to over $1M in revenue. The plan will fit small organization structure and be flexible enough to grow and be user-friendly for all staff. The consultant with assist with the development of the Technology Plan. Stephen Job will help to meet the specific needs of the company like database management for shipping and receiving, tracking, mailing list, and accounting to name a few (Abrams, 2000). In addition to the three computers owned, we will use a Microsoft Small Business Server and Office 365. Staff would be familiar with basic Microsoft products such as Word, Excel, Outlook, PowerPoint, SharePoint, and Access. These Microsoft programs will be the core of our business. The company website will be through WordPress, an all-inclusive website design and development option for businesses of all sizes (WordPress Website Design, 2017). As a computer expert, Stephen Job, the consultant will help maintain these services until more staff can be hired.

The remaining start up hardware needs will be leased. A couple ipads may be needed for day to day operation for the executive members. A label printer that will be used to print the bottle labels. Leasing of equipment will allow the company the privilege of keeping up with the latest and up to date technology. The leasing company will supply updated equipment and repair and replace the hardware. This method is good for business because not much will be needed for startup, and updated technology is easier and quicker and less expensive up-front. The company will not have to worry about one large lump sum to purchase, making it easier to budget for the equipment over a longer period of time, and have a tax break (Pros and Cons to Leasing, 2017)

The telecommunication needs of Eden Beverages will consist of bundle packet deal for land line, cloud-based phone system, high-speed commercial band internet, and a fax/copy machine. The cloud-based phone system will require no maintenance or hardware, other than IP phones. The service provider houses, maintains, and upgrades all of the technology. Technology is moving to the cloud, making access available to users anywhere. The cloud offers businesses the option of easily adding lines and accessing new features as the needs grows. The service is typically a monthly fee per user basis (Brooks, 2017).

Management & Organization Plan

Melinda Cates, the OWNER of the NAB. She holds the title to the facility and the equipment that will be used by the company. She is the creator and master mind of the mix, and worked to secure a patent for the drink.

CEO of Eden Beverages has been entrusted the position by the owner, due to being a recent graduate with a Master of Business Administration with a concentration in Health Services Administration. Her passion for creating healthy beverages while implementing health conscious decisions in her personal life is the key to the success of this business.

Mary Cates, consultant is a lawyer, and was a senior executive with the Federal Trade Commission. Stephen Job, will serve part time as the computer expert. Ian Glass, Production Line Foreman, retired plant production line foreman from Pepsi, and has many years of experience and agrees to help with planning.

The reset of the staff will consist of 10 assembly line employees. Starting with 4 and then increasing gradually, after six months, and as the demand for production increases for expansion. The experience requirement will be at least one year experience in production, with the ability to work in the US without sponsorship.

The process of defining the goals of a company and creating a plan of action for meeting the goals is placed in the hands of management. Management has to take into account short and long term strategies to operate and maneuver the overall objective of the company (The Basic Steps in Management). The Board of Directors will be the sounding board for the company based of volunteers and financial contributors. They are in place to represent and serve the interests of shareholders by overseeing the strategy, policies and performance of the business.

The Board consists of a small group.

• Chair- Melina Cates

• An outside investor

• CEO

• The attorney secured by the company

• Nutritionist or Physician

• Community Activist

President will be involved in the day to day operations of marketing. She placed the chief decision making in the hands of the CEO, who will lead the customer service operations and human resources until the company can put in place more staff. The line manager will be directly responsible for supervising the line staff. The line staff will work shifts to ensure production. Our paid consultant will report directly to the CEO.

Ethics & Social Responsibility Plan

Eden Beverages is committed to corporate citizenship. It is the goal of Eden Beverages to be truthful, having a shared interest in and impacts on the community we operate and profit in. Eden Beverages will seek to hire educated and enthusiastic people who value the initiative of the company. Those who truly believe in the value, make the day to day operations easier to maintain. It will be the intent of Eden Beverages to support such programs that will align with the focus, of creating a healthy lifestyle, one serving at a time. Community involvement will be on volunteer basis and contain contribution from the managers and employees to serve and fund events in the future, by donating their time and providing to national and local charities, like food shelters and other initiatives. Engaging employees in giving back affords them a chance to share their voice and contribute to the vision of the company (Caramela, 2016). The employees will be treated with honesty and respect and in accordance to laws for employment in the state of Maryland. Eden Beverages will comply to the standard health, safety, and environmental laws for the beverage industry. Eden Beverage seeks to be healthy for the consumers and the environment alike for healthy individuals and providing no hard to the environment.

The goals of standards of living and quality of life are important for the communities and the profitability of the company and its stakeholders. The company will build trust by being upfront and honest about the production and operation, as full disclosure to the contents used in growing and filtering the ingredients. The company will strive to leave no false statements or misleading advertisement which will help with the open and honest aspect towards building trust. Labeling and publications will contain all the information. Healthy consumption is the main social cause. We believe that providing a product that is refreshing, all natural, and not harmful in consumption could lessen the impact of obesity and diabetes, when consumers are ingesting sugars and preservatives. Personal health benefits are important. They do need to necessarily have a flavor filled drink, rather one that is more pertinent to their healthy living goals and not adding anything that that ultimately caused harm. A beverage with vital nutrients and antioxidants is important when considering the nutritional value of a beverage (Healthy Benefits of Beverages).

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