BUS599 2 ASSIGNMENT

Non-alcoholic Beverages.

Student name

Institution.

Non-alcoholic Beverages.

“Healthy Shakes.”

This is a company that focuses on production of healthy fruit and vegetable shakes for the consumers. As the name itself suggests, ‘Healthy Shakes” simply means that the products produced are in accordance with the health standards stipulated by the law and on top of that, the products used in the production are pure and natural blended fruit which come with the fresh farm vitamins that a great portion of the world population today never gets a chance to taste. Hence, the name is significant in that it describes the whole purpose of the beverage in just two words. The mission statement for the Healthy Shakes Company is: To nurture good health of the global population - one natural drink at a time. The mission generally puts into light what the company wants or is dreaming of accomplishing. Healthy Shakes uses only natural fruits and vegetables for the beverages produces with the purpose of providing healthier refreshments at affordable prices in this global market which has been flooded by harmful industrial beverages. This is driven by its purpose - making the world healthier (Kelly Holland, 2007)

The shake lovers will now be more comfortable and worry less about their health as our shake will be healthy. The shakes will come in a variety of flavors for our customers to choose from, flavors will include strawberry, pineapple, pear, beetroot, banana, carrot and vanilla among others.

Trends in the industry.

The non-alcoholic beverage industry has had a drastic change in the recent years. The beverages that were once worshiped were those that were industrial and the low prices pulled a lot of customers to purchase them. But now, consumers have begun to care about what they take because of the increasing cases of disease such as diabetes and food chemical induced disorders. This makes people look for healthier options to quench their thirst other than the pure water, and “natural” has become the most significant pull of consumer market even in the non-industrial beverage industry. Some of the reason for choosing this particular type of non-alcoholic beverage include the fact that there is profound need for such a product in this market. Secondly, there are no costly scientific issues to be managed for increased nutritional values, just know your farmer. According to Mintel, an analyst from market research, close to 69% of the consumers agreed such drinks are more efficient nutrient sources even compared to whole meals. Lastly, with this kind of beverage, even with little marketing, the product still sales as it stands out from the competition of industrial products flooding the market today. This can be supported by a statement by Wayne Lutomski, the vice president of Welch’s Global Ingredients Group saying that within the category of healthy beverages, there is an increase in demand which is driven by the consumer demand to improve wellbeing with a healthy lifestyle (Sean, 2016)

Strategic position.

The strategic position that as the best in regard to the product of the Healthy Shakes Company is the one of customer perception. This is a concept in marketing comprised of the impression of the customer, the awareness and consciousness about a company or what the company offers. This is usually affected by some factors such as social media and also customer experiences. In this case, the company would exploit this position through creating better packaging for the product, one that represents the beverage being natural. Then ensure that the customer would enjoy the beverage through providing of a range of flavor they can choose from. Proper advertising and sales advertising through the social media will go a long way in ensuring capturing of a larger market share, but most importantly, ensuring that the customer experiences are worthwhile on purchase will bring growth (Kuester, 2012)

Distribution channels.

The healthy shakes are natural drinks and hence need good refrigeration to ensure that they remain fresh for longer. In this context, one of the major distribution channels that the company would work with is the Walmart Chain of stores. The stores are known for their good customer service with the purpose of always making the customer satisfied leading their business goals. Hence, the store has had very good reputation with the customers and with their fast shipment services, the store is the best distribution channel for the product. This will also enable us feed on their reputation to grow the market share Walmart being a global company, it is possible to take the sales even oversees as long as the product receives a consumer attraction. Other channels would be the local restaurants and also the sports venues. Sports persons are a market segment that really values the state of their health. The sporting venues would become an excellent position to exploit such a need for healthier and natural products for such people. The delivery shipments would be done by the company resources in transport allowing the distributors with the task of only to sell. Direct sales to clients would be done in the company stalls that will be distributed across the country. This will also help build reputation in areas such as customer service.

Risks

Just like any other company, the healthy beverage business also has a variety of risks. These include the competitive risks where anyone can produce such a product and even today, there is competition from the farmers themselves who go large scale and start producing such beverages. This can be catered for by ensuring that effective branding has been done, customer relations built and quality in terms of packaging. Technological advancements are also risky as the competitor beverages may have better production technology that usually influences a lot in the pricing. The Healthy Shake would ensure good pricing but also ensure that there is movement with the technology as it develops. Finally, the food industry has a lot of the regulatory risks. There may arise situations of source of produce that was used in processing the alleged healthy natural drink. If the farm produce was certified as required in some states before use in large scale production. Such claims would be averted by choosing to use the right channels in obtaining of produce (Hill et all, 2008)

SWOT analysis.

The Healthy Shakes Company has internal and the external factors that go a long way in influencing the business. These can be summarized in a SWOT analysis as follows.

The company has a variety of strengths, the company has good research team in terms of market needs helping it to stand out. The staff of the healthy shakes hold valuable experience in terms of production. The company also faces little international competition in the market as it is a young market. Good online ability of the team for online representation and sales and advertisements. In terms of weaknesses, the company still does not have its own farm where the fruits and vegetables can come from directly other than outsourcing from farmers. The product also if not refrigerated go bad quickly, a disadvantage of many such products.

Opportunities, the market is very fast expanding a factor that the company can take advantage of as many people are now starting to change lifestyle towards healthy practices Increasing use of the online platforms for sale comes in handy especially when the company lacks the physical distribution stores in many areas. Better regulations that favor such healthy products. Good laws of international business and globalization. Threats of the company in this case include the fact that more companies are shifting to such beverages even those originally producing the industrial drinks such as Coca-Cola who have vast resources and can easily take the market. Difference in tastes of different cultures in the world. Political unrest in some markets, economic and price fluctuations also pose a threat (Kardes et al, 2011)

References

Kelley Holland. 2007. In Mission Statements, Bizspeak and Bromides. New York Times.

Kuester, S., 2012. Strategic Marketing & Marketing in Specific Industry Contexts, University of Mannheim, p. 110.

Hill, Charles; Jones, Gareth (2008). Strategic Management: An Integrated Approach (8th revised edition). Mason, OH: South-Western Educational Publishing. p. 11

Sean Moloughney, 2016, Healthy Beverage Market Overflowing With Opportunities. Rodman Media.

 Kardes, F., Cronley, M. and Cline, T., Marketing Analysis (SWOT), Mason, OH, South-Western Cengage, 2011 p.329