Running head: HUDSON VALLEY SWEET CIDER CORPORATION BUSINESS PLAN
1
HUDSON VALLEY SWEET CIDER CORPORATION BUSINESS PLAN
2
Hudson Valley Sweet Cider Corporation Business plan
Stanley Pierre-Charles
Professor Prakash Menon
Strategic Management
8/28/2016
Company Description
Company Name
The Hudson Valley Sweet Cider Corporation will be the name of the company, which will specialize in the production of sweet cider. Sweet cider also commonly referred to as apple cider is an unsweetened nonalcoholic beverage common in the United States and parts of Canada made from apples. The name Hudson Valley Sweet Cider Corporation is derived from the name of location from where most apples used in the production are sourced. New York State is the leading producer of apples in the United States. Production is concentrated in six areas namely, Eastern and Western Hudson Valley, Champlain Valley, Central, Lake Country and Niagara Frontier.
The Hudson Valley region has a long history of wine making and cultivation of grapes dating from 1677 (New York Apples). As a result there are many wineries located in the area. Wine tasting tours and wine festivals and other related events are common and for this reason, the name will attract many wine lovers who associate Hudson Valley with good wine. The company will also benefit from publicity by showcasing its products at these events.
Mission Statement
To provide safe and affordable sweet cider to millions of people in North American cities and beyond to unleash the health benefits of apple cider and in the process support apple growing in upstate New York. The company will supply high quality products at moderate prices to support a profit for the company and the farmers in the supply chain and creates hundreds of quality jobs across the entire value chain. I want my company to provide a healthy beverage for a happy and healthy society. This mission is to ensure that the company has remained focused in the production of quality beverage. The mission statement also indicates that it is aimed to make sure that the society is composed of healthy people who consume healthy drinks. When the society has healthy people, it means that they will be able to be productive, and their lives will be enjoyable, and they will live happily (Olson, Lopez, 2009).
The mission statement also shows that the company is taking into consideration the wellbeing of the society and its customers. The company has demonstrated that it is customer centered meaning that its activities will be focused and ensuring the welfare of the clients and their satisfaction has been achieved. The mission statement is therefore paramount for the company. If the company follows and honors its mission statement, it will be able to meet its goals and objectives.
Reasons for Choosing This Beverage
The choice was made after critical consideration of the environment and the population in the market. The demand for non-alcoholic beverages which are ...
Running head HUDSON VALLEY SWEET CIDER CORPORATION BUSINESS PLA.docx
1. Running head: HUDSON VALLEY SWEET CIDER
CORPORATION BUSINESS PLAN
1
HUDSON VALLEY SWEET CIDER CORPORATION
BUSINESS PLAN
2
Hudson Valley Sweet Cider Corporation Business plan
Stanley Pierre-Charles
Professor Prakash Menon
Strategic Management
8/28/2016
Company Description
Company Name
The Hudson Valley Sweet Cider Corporation will be the name
of the company, which will specialize in the production of
sweet cider. Sweet cider also commonly referred to as apple
cider is an unsweetened nonalcoholic beverage common in the
United States and parts of Canada made from apples. The name
Hudson Valley Sweet Cider Corporation is derived from the
name of location from where most apples used in the production
are sourced. New York State is the leading producer of apples
in the United States. Production is concentrated in six areas
namely, Eastern and Western Hudson Valley, Champlain Valley,
Central, Lake Country and Niagara Frontier.
The Hudson Valley region has a long history of wine making
and cultivation of grapes dating from 1677 (New York Apples).
2. As a result there are many wineries located in the area. Wine
tasting tours and wine festivals and other related events are
common and for this reason, the name will attract many wine
lovers who associate Hudson Valley with good wine. The
company will also benefit from publicity by showcasing its
products at these events.
Mission Statement
To provide safe and affordable sweet cider to millions of people
in North American cities and beyond to unleash the health
benefits of apple cider and in the process support apple growing
in upstate New York. The company will supply high quality
products at moderate prices to support a profit for the company
and the farmers in the supply chain and creates hundreds of
quality jobs across the entire value chain. I want my company to
provide a healthy beverage for a happy and healthy society.
This mission is to ensure that the company has remained
focused in the production of quality beverage. The mission
statement also indicates that it is aimed to make sure that the
society is composed of healthy people who consume healthy
drinks. When the society has healthy people, it means that they
will be able to be productive, and their lives will be enjoyable,
and they will live happily (Olson, Lopez, 2009).
The mission statement also shows that the company is taking
into consideration the wellbeing of the society and its
customers. The company has demonstrated that it is customer
centered meaning that its activities will be focused and ensuring
the welfare of the clients and their satisfaction has been
achieved. The mission statement is therefore paramount for the
company. If the company follows and honors its mission
statement, it will be able to meet its goals and objectives.
Reasons for Choosing This Beverage
The choice was made after critical consideration of the
3. environment and the population in the market. The demand for
non-alcoholic beverages which are healthy and which are not
carbonated have increased. People are not only consuming
drinks for leisure but also there are taking into consideration the
health of their bodies. Choosing this product it’s mainly
because of its health status (Abrams, 2003). The product also
has a future in the market, which is essential for the growth and
development of a company.
In New York State, there are approximately 700 commercial
apple farmers who create approximately 10000 direct and 7500
indirect jobs among other jobs in apple and apple product
marketing. These farmers produce 29.5 million bushels
annually. 53% of this production is sold fresh while 47% is
processed into juices, cedars and other canned apple products
(New York Apple). This indicates that the demand for apple
products exists and our company will supply sweet cider to
satisfy this market.
Strategic Position
The strategic position for a company is vital. It helps a company
to differentiate itself from other businesses in the industry. The
company has placed itself strategically by ensuring that it has
provided an alternative to the many unhealthy drinks, which are
sold in the market. The non-alcoholic drink is termed as natural
and healthy for human consumption. As most people ate turning
to healthy beverages, the company will have its position in the
industry hence its competitive advantage (Ireland, Hoskisson,
Hitt, 2005).
Distribution Channels
Distribution of company products is very essential. The Hudson
Valley Sweet Cider Corporation will have various distribution
channels. The company will have its stores where it can sell
directly to consumers. However, the company will also use the
help of local distributors to ensure that its products have been
4. widely distributed, and they have reached all the target
customers. The company will, therefore, sell regarding
wholesale and retail.
Risk Types and Their Mitigation
The company faces various. One of the risks is the risk of the
changing customer preference. This risk is very prevalent in the
beverage industry. The company will mitigate this risk by being
flexible to consumer needs and diversification of its products.
The second risk is changes of business laws, which may affect
the operations of the company. The company has to remain
informed when it comes to business regulation to mitigate this
risk. The third risk is competition risk. The competition might
increase if other companies discover that healthy beverages are
doing well in the business. To mitigate this risk, the company
will position itself in the market, and it will create a strong
brand.
SWOT Analysis
The strengths of the company include being able to provide
healthy drinks in the market, skilled workforce, and monetary
assistance provided, barriers to market entry, strong advertising
and marketing capabilities, customer loyalty, extensive
distribution channels and brand market positioning (MacBride,
2015, November 11th). The various weaknesses of the company
include low product diversification, low market diversification,
and acceptability in the market. The company has some
opportunities, which include increasing need of healthy
nonalcoholic drinks, diversification of goods, increasing
product distribution and globalization hence new markets.
Lastly, the threats include increased competition, the changing
regulations in the business environment, changing consumer
tastes, and negative publicity.
5. Marketing plan and sales strategy
Marketing is one of the avenues that a business creates
awareness to the customers concerning the products and
services it offers for sale (Calkins, 2012). It never stops, as
companies would want to increase sales volume and retain the
customers. Therefore, the Hudson Valley Sweet Cider
Corporation considers marketing as the primary plan to reach
out to customers. The Corporation faces stiff competition from
the already existing businesses. As a result, it wants to counter
it by creating its product awareness. The Corporation also seeks
to develop new sales strategies that will help in increasing the
sales volume. Therefore, the paper provides a detailed highlight
of the market plan and sales strategy of the corporation. It also
highlights how the business puts its competition programs to
keep up with the competitors.
The Company’s target market
The company specializes in the production of sweet cider that it
wants to create its awareness and improve its sales in the
market. Fresh cider also commonly referred to as apple cider is
an unsweetened nonalcoholic beverage common in the United
States and parts of Canada made from apples (Calkins, 2012).
The company expects to reach consumers consisting of both the
young, middle-aged and the old. Therefore, the users’ ages
range from eight years all the way to as old as seventy years.
The beverage offered has some medicinal value to the
consumers as compared to other beverages offered in the market
(Calkins, 2012). Since the product is offered at affordable
prices, it will take care of all customers irrespective of their
income. Additionally, the product is universal and does not
exclude a person based on his or her ethnicity.
The investigation of the company’s demographic information
indicates that there exist most of the targeted consumers. The
6. surveys show that most clients within the middle-class level.
The individuals within the targeted market had at least
secondary education and anticipated to embrace the product
(Good, & Hassay, 2015). Therefore, the target market will offer
the company some chance to create a good image of the product.
Once this is achieved, then the business will find easy time
reaching out to other areas to widen its market share.
Additionally, the local area consists of the young individuals
with anticipation that its size will increase.
The company’s market competition
There are many businesses in the market that already offers
non-alcoholic drinks, and the company works its plans to
counter the competition from the rivals (Profits Vs Principles:
Market Competition and Moral Transgression, 2014). Any
company that wants to increase its sales volume needs to
compete favorably by first offering products that meet the
demands of the clients. Therefore, the company offers high-
quality products at reduced prices as compared with those
provided by the rivals. This way, the company will manage to
attract customers who purchase other beverages. The unique
feature that the company expects to help compete favorably
involves the medicinal value obtained from the company’s
beverage.
Secondly, the company has the plan to carry out a study that
will contribute to monitoring the strategies being employed by
the various existing organizations. One way of putting up a
healthy and working competition style involves taking a close
study of what works well to the rivals (Profits Vs Principles:
Market Competition and Moral Transgression, 2014). For
example, the firm has started comparing the marketing programs
that other companies such as Pepsi apply to help them attract
and retain many customers. The method will assist the company
to come up with better marketing and sales plans that make it
7. increase its sales volume. It involves interacting with clients
and retaining them through the discounted prices provided
(Profits Vs Principles: Market Competition and Moral
Transgression, 2014).
Nowadays, there are valuable emphases the help in making a
method understandable and to appear appealing to a wider target
customer (Narayanan, Rehman, Devassy, Rama, Ahluwalia, &
Ramachandran, 2014). In realizing the desired impact, a
strategy should be tested and proved to work and provide a
creative means of reaching out to the clients. The company
intends to create policies that have strong visual and emotional
appeal to the targeted customers within the local area. In
making the marketing plan and sales strategy meaningful and
value adding, the company applies the five f-words (Narayanan,
et.al, 2014). These include focus, follow-through, flexibility,
feedback and fun to help reach out to more consumers. For
example, the company has put up a team that will carry out a
follow-up of the customers and compile their sincere feedback
concerning the beverage offered.
One method that businesses increasing their market share
involve expansion of the marketing strategies applied
(Narayanan, et.al, 2014). As a result, the Hudson Valley Sweet
Cider Corporation has employed the idea of using the vehicles
to sell the beverages. The company uses forester tracks in
conducting the marketing plans. The cars will be fitted with
running displays that show the benefits the beverage will offer
to the customers. There are many firms that use the same
marketing means to increase their sales and attract many clients.
For example, the Coca-Cola Company use the same make of
vehicles to market its products (Good, & Hassay, 2015).
Finally, for the first two years in the industry, the company will
deal with customers directly. This way, the company will learn
and meet the needs of the customers.
8. Ethics and Social Responsibility plan
Disney, Gap, GE and Coca-Cola constantly rank among the most
admired companies in the world. However, the admiration does
not just come from the strength of the brands in the form of
products and services. These companies have sound and solid
ethics and social responsibility plans, a factor which adds credit
to their score in quality products and excellent services (Doh,
Husted, & Yang, 2013). Hudson Valley Sweet Cider
Corporation intends to be amongst the list of the most admired
companies not only for their products and customer service, but
also through its commitment to the communities especially
within New Jersey and environment in which it is established
and operates. A recent study by Nielsen revealed that
approximately 55 percent of global consumers are will to pay
extra dollars for services and products from organizations that
are highly committed to positive environmental and social
impact, especially within the communities they operate in.
Hudson’s ethics and social responsibility is built around the
following major pillars: creation of jobs, abiding by laws of
every jurisdiction in which it operates, honest and fair treatment
of employees, non-discrimination of employees and increased
diversity in the workplace (Doh, Husted, & Yang, 2013). As a
startup business in the non-alcoholic beverages industry, the
company intends to announce its presence in the market as an
active employer and creator of job opportunities. Companies,
which have a great corporate social responsibility, attract and
retain employees. As part of its corporate social responsibility,
the company will create 200 job opportunities at the end of each
financial year, provide training to these employees and orient
them in different areas of service within the organizational
ranks.
As part of its human resource management policy, the company
will also accept internships every summer. In this plan 50
interns will be allowed to attach themselves with the
organization for experience in different areas such as
management, service delivery, manufacturing, sales and
9. marketing, research and development and financial options.
Further, the human resource department will absorb another
fifty graduates from colleges all over the United States,
especially within the state of New York in a program graduate
trainee program (Doh, Husted, & Yang, 2013). In the graduate
trainee program, through a competitive process, the firm will
recruit freshly graduated students from vast areas of education
and train them on different functions within the organization.
The program will admit fifty fresh graduates annually, divided
as follows: management (10), sales and marketing (15), finance
and administration (5), research and development (15) and
production (5). The fresh graduates will be trained for free and
guaranteed of employment opportunities within the organization
after successful completion of the scheduled training programs.
As part of the human resource management strategy, Hudson
Valley Cider Corporation will also outsource employees
especially for functions such as consulting and improving
services (Doh, Husted, & Yang, 2013). Outsourcing will also be
an avenue of employment for some people both within and
without the community in which the firm is established.
The second component of the ethics and social responsibility
plan is abiding with the laws, regulations and standard practices
provided by the local, state and federal government especially
from within the company’s region of establishment. There are
several laws set up by the federal and state governments to
govern the way business is conducted in the United States.
While some of these regulations may seem unfavorable to the
business, most of them are geared towards creating a
competitive environment where businesses have fair and equal
chance of making profits and succeeding.
Hudson Valley Cider Corporation falls in the category of
business entities, which will have a clean business record on
issues touching on paying taxes, rents, following business
policies, especially those relating to health and environmental
conservation. The non-alcoholic beverages products harvested
from apple, which will be the main good in the firm must
10. subscribe to the highest standards of health in terms of
cleanliness and presentability (Doh, Husted, & Yang, 2013). As
part of abiding to the rules of the game, the company’s
management will allow for regular health inspections of its
systems especially in production and manufacturing. Hudson
Valley Sweet Cider Corporation will be built on the principle
value of integrity, and this is why its financial books and
records will be option to both internal and external audit to
clean any possible cases of financial malpractices. Part of
keeping clean financial records includes paying of taxes, paying
its loans and accounting for the company expenditure.
The third component of ethics and responsibility plan is fair and
honest treatment of employees in the organization, both skilled
and non-skilled. Many companies consider customers and
clients to be the most important components of their business
success. However, as much as customers form such an important
pillar for any business success, employees play such a crucial
role in the overall success. Hudson Valley Sweet Cider
Corporation understands how critical it is for human resource
practices to be based on motivation of employees through fair
and honest treatment. Employees are not tools used in achieving
organizational goals and disposing off after results have been
accrued- the company understands this.
As part of ethics and responsibility plan, all employees will be
given health insurance, both skilled and semi-skilled, offered
attractive compensation and conducive working conditions. The
company will pay a lot of attention to the treatment of its
employees (Doh, Husted, & Yang, 2013). The human resource
department will not tolerate any cases of sexual harassment,
unfair performance previews and unmerited promotions.
Employees will undergo a periodical training and development
in which they will be built both professionally and socially.
Most companies concentrate on the professional training and
development of their employees because it is heavily required in
productivity. Such companies fail to understand that personal
11. and social development of employees enhances teamwork and
accountability, decision making and relationships between the
employees and customers, a factor which translates to better
services and improved quality of products through ongoing
consultations and feedback (Doh, Husted, & Yang, 2013).
Motivation will be an integral part of human resource
management to keep employees satisfied with their jobs, and
improve their loyalty and commitment to the core values of the
business.
Lastly, the firm will ensure non-discrimination of employees
and diversity in the workplace. The United States is composed
of several races from Whites to Hispanics to Black Americans.
As a principle of equality, all employees in the organization
will be subjected to the same meals, same offices, and same
working conditions to delete any possible case of
discrimination. As a consequence, employees whether in
management or junior roles found discrimination others on the
basis of their gender, race, sexuality and sexual orientation, or
even backgrounds will face severe punishment including serving
jail terms since discrimination is against the provisions of the
United States Labor Department.
The organization will take cases like racial abuses, or sexual
harassment seriously, and treat them as pertinent issues of the
society. Inclusivity and workplace diversity also form part of
the firm’s commitment to being a good corporate citizen. A
diverse workforce is composed of people from different
backgrounds, religions, sexual orientations, sex, races or even
ages (Doh, Husted, & Yang, 2013). The company understands
that in the modern era of economic globalization, it must make
efforts to achieve diversity in the workforce. Understanding the
benefits of diversity in the workforce helps the company
establish a business with a competitive edge.
For instance, in employing workers with language and cultural
skills can create such bigger reach for the business. Apart from
12. being part of the ethics and social responsibility component,
workforce diversity will come with the following benefits:
increased productivity for the company since there are new
processes and ideas brought into the business, increased
creativity and innovation from the mixture and heterogeneous
working groups cross-fertilizing one another within the
company and improved communication and language skills.
How the company’s activities will affect the environment and
steps in mitigating these negative impacts.
Hudson Valley Sweet Cider Corporation acknowledges that its
activities will have negative impacts to the environment
especially in regions of its location. The negative environmental
impact will stem from the following sources; choice of
packaging and disposal of the packages (mostly glass and
plastic bottles), overuse of water in regions where the
commodity is scarce, and sometimes air pollution instances
from the foregoing manufacturing and production. Just like
other companies like Coca-Cola and PepsiCo which have been
heavily accused of dehydrating the communities pursuing water
resources to feed plants, destroying local agriculture and drying
up farmer’s wells.
The company overly depends on water as a major resource since
without it, there would be no business at all. The operations
will rely on access to large water suppliers, since it would take
approximately three litres of water to make a litre of the apple
juice. It means that within its location, the company will be
using a lot of water, which is likely to affect the environment
negatively since many sources and catchment areas will be
completely destroyed and depleted. To satisfy the need to large
supply of water, the company will take control of aquifers in
regions or communities around New York, and other areas of its
operations, a situation which may not please many people
(Baur, Budnik, Ruff, Egilman, Lemen, & Soskolne, 2015). In
semi-arid countries, as the company expands, they will be
forced to reduce their agricultural activities to accommodate the
company as much as this would not be what the business
13. advocates for.
Secondly, Hudson Valley Sweet Cider will attract negative
publicity because of its choice of packaging and disposal of the
bottles. For packaging its drinks, the company will use both
plastic and glass bottles in various capacities and volumes. For
plastic bottles, once they have been used, many consumers will
not follow protocols in disposing them, a situation which is
likely to lead in environmental pollution especially on soils.
Disposal of the broken parts of the bottles is likely to be a
nuisance to the environment since they will not only be
pollutants to the soil but also pose serious threats to land use.
As a processing firm, the company is likely to release waste
materials to the environment. These waster products can take
the form of chemical spills and industrial wastes. Suppose these
wastes are released in water sources such as rivers, aquatic life
will be killed.
The company understands the danger associated with these
chemical skills and therefore as a way of dealing with these
issues, the firm will put a lot of practices in place to limit these
environmental hazards. Firstly, the company will conduct mass
education and sensitivity campaigns on effective use and
disposal of the used bottles (Baur, Budnik, Ruff, Egilman,
Lemen, & Soskolne, 2015). As part of the advertising campaign,
the firm will have stickers and messages on the surface of these
packaging materials with environmental conservation messages,
which will reduce the negative impact likely to be caused due to
the poor disposal methods likely to be instigated by members of
the public (Baur, Budnik, Ruff, Egilman, Lemen, & Soskolne,
2015). Secondly, to avoid water pollution caused by oil and
chemical spills into water bodies, the company will take an
initiative to treat all its wastes before being released into the
environment. Sewage treatment will be used in reducing the
amount of harm associated with waste disposal in case they get
into water sources.
Health claims or issues related to the company’s product and
strategies to mitigate the negative issues.
14. Just like other sugary drinks like soda, soft drinks produced
from the company are likely to have similar effects especially to
the consumer (Sherwin, 2016). Firstly, the soft drinks are
associated with weight gain, just like sod sometimes can
accelerate gain of extra weight. Since the drinks are largely
made from apples and supplemented with sugar, large amounts
of fructose will be supplied to the body during consumption, a
factor which contributes to excessive weight gain (Baur,
Budnik, Ruff, Egilman, Lemen, & Soskolne, 2015). Studies
indicate that fructose does not have the same effects of satiety
development unlike glucose, a factor that negatively impacts the
brain function in terms of regulating the amount of calorie
intake.
Additionally, people taking excessive sugars in form of soda
and soft drinks consume 17 percent more calories than when
they fail to. Secondly, the Sweet Cider drinks have larger
amounts of sugar that are swiftly turned into fat in the liver.
While different cells within the body can easily metabolize
glucose, fructose that is a component of apple, can only be
metabolized with liver, which sometimes can lead to
accumulation of fats in the liver. Thirdly, the Sweet Cider
drinks are associated with an increased belly fat accumulation,
again because of the sugar content present in the body (Baur,
Budnik, Ruff, Egilman, Lemen, & Soskolne, 2015). The other
negative claim associated with sugar-sweetened drinks or
beverages is their relationship with type 2 diabetes.
Type 2 diabetes is a serious and common disease associated
with approximately 300 million people globally (Sherwin,
2016). Consumption of sugar-sweetened drinks result into
insulin resistance, and this is why such drinks are associated
with type 2 diabetes. These factors, coupled with other health
risks are likely to scare away customers. However, the products
also have positive components such as a rich source of vitamins
and related nutrients (Baur, Budnik, Ruff, Egilman, Lemen, &
Soskolne, 2015). The company will use advertising campaigns
to market its products based on the fact that they supply huge
15. amounts of vitamins and associated drinks. Besides, since most
of the negative health issues are associated with sugar contents
in these products, the firm will reduce the content of sugar in
these products to alleviate the negative health claims.
References
Abrams, R. (2003). The successful business plan: secrets &
strategies. Palto Alto, Calif: Planning Shop.
Baur, X., Budnik, L. T., Ruff, K., Egilman, D. S., Lemen, R. A.,
& Soskolne, C. L. (2015). Ethics, morality, and conflicting
interests: How questionable professional integrity in some
scientists supports global corporate influence in public health.
International journal of occupational and environmental health.
Calkins, T. (2012). Breakthrough Marketing Plans.
Doh, J., Husted, B., & Yang, X. (2013). Ethics, Corporate
Social Responsibility, and Developing Country Multinationals.
Business Ethics Quarterly, 23(04), 638-639.
Ireland, R. D., Hoskisson, R., & Hitt, M. (2005). Understanding
Business Strategy: Concepts and Cases. Cengage Learning.
MacBride, E. (2015, November 11th). How Honest Tea
conquered the US beverage market. Retrieved from CNBC:
http://www.cnbc.com/2015/11/11/how-honest-tea-conquered-
the-us-beverage-market.html
Good, W. S., & Hassay, D. N. (2015). Multilevel Marketing
Plans A New Channel of Distribution. Proceedings of the 1995
World Marketing Congress Developments in Marketing Science:
Proceedings of the Academy of Marketing Science, 294-300.
Narayanan, V., Rehman, R., Devassy, A., Rama, S., Ahluwalia,
P., & Ramachandran, A. (2014). Enabling location based
services for hyper-local marketing in connected vehicles. 2014
International Conference on Connected Vehicles and Expo
16. (ICCVE).
Olson, J. S., & Lopez, C. (2009). Build Your Beverage Empire.
Jorge Olson.
Sherwin, B. D. (2016). Chocolate, Coca-Cola, and Fracturing
Fluid: A Story of Unfettered Secrecy, Toxicology & the
Resulting Public Health Implications of Natural Gas
Development. Ohio State Law Journal, 77.
Running Head: MARKETING PLAN AND SALES STRATEGY
1
MARKETING PLAN AND SALES STRATEGY
2
Marketing Plan and Sales Strategy
Stanley Pierre-Charles
Professor Prakash Menon
Strategic Management
8/15/16
Marketing is one of the avenues that a business creates
awareness to the customers concerning the products and
services it offers for sale (Calkins, 2012). It never stops as
companies would want to increase sales volume and retain the
17. customers. Therefore, the Hudson Valley Sweet Cider
Corporation considers marketing as the primary plan to reach
out to customers. The Corporation faces stiff competition from
the already existing businesses. As a result, it wants to counter
it by creating its product awareness. The Corporation also seeks
to develop new sales strategies that will help in increasing the
sales volume. Therefore, the paper provides a detailed highlight
of the market plan and sales strategy of the corporation. It also
highlights how the business puts its competition programs to
keep up with the competitors.
The Company’s target market
The company specializes in the production of sweet cider that it
wants to create its awareness and improve its sales in the
market. Fresh cider also commonly referred to as apple cider is
an unsweetened nonalcoholic beverage common in the United
States and parts of Canada made from apples (Calkins, 2012).
The company expects to reach consumers consisting of both the
young, middle-aged and the old. Therefore, the users’ ages
range from eight years all the way to as old as seventy years.
The beverage offered has some medicinal value to the
consumers as compared to other beverages offered in the market
(Calkins, 2012). Since the product is offered at affordable
prices, it will take care of all customers irrespective of their
income. Additionally, the product is universal and does not
exclude a person based on his or her ethnicity.
The investigation of the company’s demographic information
indicates that there exist most of the targeted consumers. The
surveys show that most clients within the middle-class level.
The individuals within the targeted market had at least
secondary education and anticipated to embrace the product
(Good, & Hassay, 2015). Therefore, the target market will offer
the company some chance to create a good image of the product.
Once this is achieved, then the business will find easy time
reaching out to other areas to widen its market share.
Additionally, the local area consists of the young individuals
with anticipation that its size will increase.
18. The company’s market competition
There are many businesses in the market that already offers
non-alcoholic drinks, and the company works its plans to
counter the competition from the rivals (Profits Vs Principles:
Market Competition and Moral Transgression, 2014). Any
company that wants to increase its sales volume needs to
compete favorably by first offering products that meet the
demands of the clients. Therefore, the company offers high-
quality products at reduced prices as compared with those
provided by the rivals. This way, the company will manage to
attract customers who purchase other beverages. The unique
feature that the company expects to help compete favorably
involves the medicinal value obtained from the company’s
beverage.
Secondly, the company has the plan to carry out a study that
will contribute to monitoring the strategies being employed by
the various existing organizations. One way of putting up a
healthy and working competition style involves taking a close
study of what works well to the rivals (Profits Vs Principles:
Market Competition and Moral Transgression, 2014). For
example, the firm has started comparing the marketing programs
that other companies such as Pepsi apply to help them attract
and retain many customers. The method will assist the company
to come up with better marketing and sales plans that make it
increase its sales volume. It involves interacting with clients
and retaining them through the discounted prices provided
(Profits Vs Principles: Market Competition and Moral
Transgression, 2014).
Nowadays, there are valuable emphases the help in making a
method understandable and to appear appealing to a wider target
customer (Narayanan, Rehman, Devassy, Rama, Ahluwalia, &
Ramachandran, 2014). In realizing the desired impact, a
strategy should be tested and proved to work and provide a
creative means of reaching out to the clients. The company
intends to create policies that have strong visual and emotional
appeal to the targeted customers within the local area. In
19. making the marketing plan and sales strategy meaningful and
value adding, the company applies the five f-words (Narayanan,
et.al, 2014). These include focus, follow-through, flexibility,
feedback and fun to help reach out to more consumers. For
example, the company has put up a team that will carry out a
follow-up of the customers and compile their sincere feedback
concerning the beverage offered.
One method that businesses increasing their market share
involve expansion of the marketing strategies applied
(Narayanan, et.al, 2014). As a result, the Hudson Valley Sweet
Cider Corporation has employed the idea of using the vehicles
to sell the beverages. The company uses forester tracks in
conducting the marketing plans. The cars will be fitted with
running displays that show the benefits the beverage will offer
to the customers. There are many firms that use the same
marketing means to increase their sales and attract many clients.
For example, the Coca-Cola Company use the same make of
vehicles to market its products (Good, & Hassay, 2015).
Finally, for the first two years in the industry, the company will
deal with customers directly. This way, the company will learn
and meet the needs of the customers.
References
Calkins, T. (2012). Breakthrough Marketing Plans.
20. Good, W. S., & Hassay, D. N. (2015). Multilevel Marketing
Plans A New Channel of Distribution. Proceedings of the 1995
World Marketing Congress Developments in Marketing Science:
Proceedings of the Academy of Marketing Science, 294-300.
Narayanan, V., Rehman, R., Devassy, A., Rama, S., Ahluwalia,
P., & Ramachandran, A. (2014). Enabling location based
services for hyper-local marketing in connected vehicles. 2014
International Conference on Connected Vehicles and Expo
(ICCVE).
Profits Vs Principles: Market Competition and Moral
Transgression. (2014).
Running head: HUDSON VALLEY SWEET CIDER
CORPORATION 1
HUDSON VALLEY SWEET CIDER CORPORATION
2
Hudson Valley Sweet Cider Corporation
Stanley Pierre-Charles
Professor Prakash Menon
Strategic Management
28 August 2016
Part I: Operations Plan
Competitive advantages
Hudson Valley Sweet Cider Corporation has competitive
advantages in three major areas: cost, technology, product and
service differentiation and marketing strategies. In competitive
21. cost advantage, the firm will use its inexpensive raw materials,
controlled costs, efficient operations and skilled workforce in
creating maximum value for its customers. This way, the
company will stay ahead of others in the industry. Technology
as a competitive advantage comes in the form of product design,
engineering, and enhanced processes. The firm will employ
different technological systems and computer software in
product design, workplace operations, and production processes.
Using new delivery methods, the firm will save a lot of costs
that can be shared by their clients. Product and service
differentiation, as a marketing strategy is another competitive
advantage, the firm will have in the marketplace. As opposed to
other non-alcoholic beverages, Hudson Valley Sweet Cider’s
products are unique, valuable and focus on customer loyalty.
For the start, Hudson Valley Sweet Cider Corporation will rent
facilities from existing companies in the non-alcoholic beverage
industry. Renting facilities is a strategy used in the company to
avoid a lot of expenses used on capital resources. Further, since
Hudson Valley will be getting into the industry for the first
time, outsourcing production will be used in expanding the
product provision, and service improvement. Just like other
companies in the beverage industry, the following equipment
will be used in the production process: refrigerators for water
and other liquids preservation, ovens, burners, bottling
equipment, aluminium cans, and caramel colouring. This
equipment will be rented and outsourced at the start to reduce
start-up costs, but the firm will progressively buy its equipment
as time gets by.
Quality control and inventory control
Ensuring quality control will be at the center of operations in
the company. Hudson Valley Sweet Cider Corporation will
ensure consistent quality and safety through solid governance
22. and compliance to applicable standards and regulations (Altay,
& Litteral, 2011). The products will be manufactured following
strict requirements; specifications and policies provided through
the integrated quality management program, which will account
for the company’s operations, system-wide in comparison to
similar global standards for manufacture and distribution of
beverages. Hudson Valley Sweet Cider Corporation's inventory
control revolves around operations management, technological
system, programmed software for inventory management,
supply chain and logistics management (Altay, & Litteral,
2011).
Equipment and machines
For supplies, the company will use vendors associated with
veterans in the industry such as Coca-Cola and Pepsi Co as
means of getting established in the market. Once an order has
been received, the company will work hard to produce its
beverage within 14 working days. The firm will use various
distribution channels. Stores will be used to sell directly to
consumers (Altay, & Litteral, 2011). Local distributors will be
highly employed to reach as many people as possible. The
company will conduct continuous evaluations and performance
improvements on its processes, operations, and production.
Research and development activities include laboratory research
geared towards knowledge discovery, the formation of design
and concept for production and product alternatives, testing new
methods and prototypes, construction of moulds, jigs, and tools
related to technology and new designs. (Altay, & Litteral,
2011). Other activities in research involve engineering and
construction activities and marketing research.
Part II: Technology Plan
Computer software and technological applications
The modern marketplace is not only competitive but has
23. advanced technologically. Therefore, Hudson Valley Sweet
Cider Corporation will largely use technology in expanding its
functions, production process, communicating with employees
and customers, human resource management and other functions
within the company (Jamasb, Nuttall, & Pollitt, 2006). Radio
Frequency Identification will be used in streamlining the
inventory control through using the small microchip on the
packaging or tag of the product. The RFID system will be used
in place of the barcodes, which are scanned individually.
Using RFID in scanning helps in controlling inventory control
since the process is quicker and scanning can be done in bulk.
Technology will be used in employee recruiting, training, data
storage and retrieval and performance management (Jamasb,
Nuttall, & Pollitt, 2006). Oracle Human Resource Management
Systems will be used in managing employee payroll, time and
labor (Commonly known as OTL), Oracle learning management,
performance management and Oracle Human Resource
Management Systems Intelligence. Oracle Payroll and Human
Resources improve the efficiency of management of standard
human resource activities, workforce data. The Payroll system
will include an integrated Human Resource System that enables
management of several employee needs (Jamasb, Nuttall, &
Pollitt, 2006). Communication with customers is another
important aspect of management in the company.
Therefore, Hudson Valley will implement Customer
Relationship Management Technologies through several
communication channels such as telephone, live chart, social
media, marketing materials and the company’s website (Jamasb,
Nuttall, & Pollitt, 2006). Customer Relationship Management
will consist of three major components such as Sales Force
Automation, Service Automation, and Marketing Automation. In
employee and vendor communication within New Jersey, the
company will use SharePoint Online, which is a virtual database
24. allowing communication between workers around different
regions (Jamasb, Nuttall, & Pollitt, 2006). To be relevant, the
firm will maintain a solid presence on social media platforms
such as Facebook, Twitter, and others. Automated beverage
production machines will be used in the manufacture of the
company's produce.
Part III: Management and Organization
The success of Hudson Valley Sweet Cider Corporation is
overly dependent on its management structure, and the
functional departments under each of these levels. Business
management relies both on the application of the hard and
effective use of soft skills (Phillips, Griffiths, & Sewell, 2010).
Functional level strategies respond to the operational level
strategies. The following management structure (matrix) will be
used in the organization to affect growth and development.
This management structure divides power and authority by
projects and functional areas. As opposed to answering to just
one boss, employees is supervised by two immediate
supervisors in the form of project manager and functional
manager.The board of directors will be responsible for decision
making and policy implementation. Below the board of directors
are managers in these fields: research and development,
production, marketing, human resources, information
technology, finance and administration, and program manager.
Each of the managers works within a designed portfolio
especially functionality and expertise. Consulting and advisory
will be outsourced from different consulting firms in the
beverages industry and financial firms. Below these managers
are different teams and staff working on expertise and
functionality as specified.
25. This management structure is excellent on resource
coordination since supervisors will be more focused on their
areas of knowledge and expertise such as employee
management, training and hiring (Phillips, Griffiths, & Sewell,
2010). Secondly, the organization favors this management
structure since its employees will be able to specialize in a
particular field so that they excel in functional areas of
expertise. Comunication and decision making within a matrix
management structure is effective and efficient (Phillips,
Griffiths, & Sewell, 2010). Since employees are in constant
contact with workers from other functional areas, resources and
information will flow more fluidly between these functional
departments making decision-making a team effort.
Functional level strategies for the management structure will
advocate for the organization to see the management decisions
as specific levels of the business such as finance, human
resources, marketing and information management. In such
management structures, resources and employees of the
organization will be assigned to the duties that suit their
interests and skills (Rajagopal, 2012). For instance, suppose an
organization has an employee with a strong background in
human resource management, functional level strategies will
demand that he or she is assigned to human resource function as
opposed to working in the marketing or finance department.
Functional level strategies in the management structure aim at
seeing resources and individuals as an end in them other than a
means to an end.
References
Altay, N., & Litteral, L. A. (2011). Service parts management:
Demand forecasting and inventory control. London: Springer-
Verlag.
Rajagopal, . (2012). Darwinian fitness in the global
26. marketplace: Analyzing the competition. Basingstoke: Palgrave
Macmillan.
Jamasb, T., Nuttall, W. J., & Pollitt, M. G. (2006). Future
electricity technologies and systems. Cambridge, UK:
Cambridge University Press.
Phillips, N., Griffiths, D. S., & Sewell, G. (2010). Technology
and Organization: Essays in honour of Joan Woodward.
Bingley, UK: Emerald Group.