Running Head: COMPANY DESCRIPTION AND SWOT ANALYSIS
COMPANY DESCRIPTION AND SWOT ANALYSIS
Company Description and SWOT Analysis
LaShondra Jackson
Dr. Andrea Banto
Strategic Management
July 21, 2019
Company Name and its Significance
A company name should be distinctive, extendable, and easy to identify and pronounce, and also provide an idea of the products offered by the company (Wheelen, Hunger, Hoffman & Bamford, 2017). The company name which I have chosen is KoolSprings Water Company. The significance of the name KoolSprings Water Company is that it gives an identity of the company and what it will do for business. The company will be focused on providing drinking water to the market and therefore choosing the name KoolSprings Water Company is ideal for the business. The name is also self explanatory of what the company activities are and therefore it is important because customers will be able to easily identify it.
Beverage to be produced
The company will be packaging non-alcoholic beverage which is bottled water for its customers. The product is ideal for the company to produce because it has a ready market as customers buy drinking water each and every time. The key ingredient for the product is simply water. Most people prefer pure bottled drinking water without any added ingredients and this is the main product to be packaged. Also there will be vitamin bottled water where the pure drinking water will be added some flavors to it. The flavors which will be added are lemonade and mixed berries which will include strawberries, blueberries and raspberries. Lemonade flavor is one of the most preferred water products during the summer period while mixed berries water is one of the well balanced water flavors which can be produced.
Company’s Mission Statement
A mission statement is a brief statement of why the company exists to do. It will define the values of the company, culture, plan, essential goals and also ethics (Wheelen, Hunger, Hoffman & Bamford, 2017). The mission statement of the company is “At KoolSprings Water Company, our mission is to refresh lives by providing efficient and reliable products which meet the customer standards as we strive to be the world leader in offering pure bottled drinking water”.
Trends in Non-alcoholic Industry
In 2019, consumer wellness and health has increased which has created a lot of impact in the beverage industry at large. Studies by UCL indicate that 36% of people aged between 16-24 years are now abstaining from alcohol ("More young people abstaining from alcohol, and others drinking less", 2019). Beverage companies therefore are now tasked with developing new products which are not only non-alcoholic but which are in match with the current trends of health and wellness of the consumers. The trends include:
Functionality
Non-alcoholic industry has recorded an increase in new products which come with functional benefits. Customers require products which will be of benefit to them i ...
Running head BUSSINESS PLAN DRAFT1BUSSINESS PLAN2Bu.docxsusanschei
Running head: BUSSINESS PLAN DRAFT
1
BUSSINESS PLAN
2
Business Plan Draft
BUS 599
Avery Clementin
Dr. Daniel Goldsmith
November 29, 2016
TABLE OF CONTENTS
COMPANY DESCRIPTION AND SWOT ANALYSIS 3
COMPANY NAME AND SIGNIFICANCE 3
WEFIT’S COMPANY MISSION STATEMENT 3
TRENDS IN THE NON-ALCOHOLIC BEVERAGE INDUSTRY 3
WEFIT’S STRATEGIC POSITION 4
OVERVIEW OF WEFIT’S DISTRIBUTION CHANNELS 5
RISK ANALYSIS OF WEFIT COMPANY 5
SWOT ANALYSIS 6
MARKETING PLAN AND SALES STRATEGY 6
SALES STRATEGY 7
COMPANY’S TARGET MARKET 8
ANALYZE THE TYPES OF CONSUMERS 8
COMPANY’S MARKET COMPETITION 10
COMPETITION FACTORS 11
JUSTIFICATION OF COMPANY STRATEGY 11
WEFIT DIET DRINK FIVE FS 12
ETHICS AND SOCIAL RESPONSIBILITY 13
COMMITMENT OF THE COMPANY 13
EFFECTS OF WEFIT ACTIVITIES ON THE ENVIRONMENT AND HOW TO MITIGATE THEM 13
CHOICE OF PACKAGING 13
DISPOSAL OF BOTTLES 14
HEALTH ISSUES 14
COMPANY’S PLAN TO REACH THE APPROPRIATE MARKET 15
BUSINESS PLAN FINANCIALS 15
STRATEGIC FINANCIAL PLANNING TECHNIQUES 15
BUDGETING 16
PRICING ANALYSIS 16
EVALUATING COSTS 16
CASH FLOW MANAGEMENT 17
PERFORMANCE ANALYSIS 17
REFERENCES 18
Company Description and SWOT Analysis
Company Name and Significance
The name of my Non- alcoholic beverage (NAB) company is WeFit Diet Drinks. This company deals with the production and the manufacturing of the non-alcoholic beverages that have zero calories content. The significance of this beverage is to provide soft drinks to the people who enjoy the various tastes of different sodas, but they are no longer willing to indulge in drinks that have the calories as a measure of ensuring a healthy lifestyle. This company will provide drinks with different flavors just like the other sodas. These drinks will aid in meeting the needs of the people who have decided to adopt healthy lifestyles such as avoiding the high-calorie content drinks.
WeFit’s Company Mission Statement
The mission statement of the WeFit Diet Drinks is to ensure the provision of sophisticated and inviting diet soft drinks that do not mislay the authenticity of the people health habits. As a company, we are committed to ensuring that we meet the various needs of our customers through the provision of high-quality products, to ensure that they are satisfied and also provide a high level of professionalism. In addition to this, we are also aiming at making a difference and ensuring the creation of value as a company.
Trends in the Non-Alcoholic Beverage Industry
One of the trends in the non-alcoholic beverage industry is that there is a revolution whereby the sugary drinks and juices sales are likely to slip. This is a result of the increasing need for the development of new and healthy beverages and other brands that are much healthier than the prevailing ones. In the developed countries, many people have become more sensitive to health ...
Running head: STEELNUTRIDRINK 1
STEELNUTRIDRINK 2
SteelNutridrink Non-Alcoholic Beverage Company
Kizzie Griffin
Dr. Vanessa Graham
BUS 599
Strayer University
7/18/2017
Company and its significance
The company in question is Steel Nutri-drink Non-Alcoholic Beverage Company. The company will be manufacturing, processing and distributing the non-alcoholic beverage to the beverage markets. The rationale and foundation behind the creation, manufacturing and processing of the Steel Nutri-drinkis based on the motivation and need to provide a drink that gives the customer value for their money, instantaneous energy, is refreshing and still healthy. Other companies operating in the market have not managed to satisfy these needs of consumers. This is based on the fact that other drinks contain a lot of calories and sugars that may lead to obesity and other related health complications and are also costly at the same time. All areas that other competitors have not tapped into will be fully taken care of by Steel Nutri-drink.
Mission Statement
The mission statement for the company is “To be a global leader in the provision of efficient and timely energy drinks for all our customers, provide value for their money and achieve sustainability for the environment and all our workers.” The mission statement enables the company to remain focused and committed to achieving its goals and achieve consumer satisfaction. This will also enable it work towards maintaining the competitive edge in the highly competitive beverage markets. The provision of efficient and timely energy drinks gives the company direction. This reminds workers in the organization why the company is in existence. This is what will make the organization to be successful. Offering customers value will act as a “North Star,” which keeps each and every worker clear on the direction of Steel Nutri drink. Efficiency and value will help focus the future of the company. The mission will tell workers of the company what they are doing today as well as what they will do in the future.
The trends in the non-alcoholic beverage industry
There are some changes that are being experienced in the beverage market. Among the changes is the growth of energy, water, and sports drinks brands. Directing attention to only carbonated drinks is now a thing of the past. Much effort by organizations is directed towards producing and selling healthy beverages (Granato, Branco, Nazzaro, Cruz, & Faria, 2010). The other trend is reworking recipes. Most brands that have been in market for a long time now have to be reformulated. They have to be replaced with revamped version as well as have few calories. Also, there is a shift towards having smaller cans and bottles. Having smaller cans and bottles makes the players in the non-alcoholic be ...
Running head HUDSON VALLEY SWEET CIDER CORPORATION BUSINESS PLA.docxcowinhelen
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 SWEET BLEND BUSINESS PLAN25SWEET BLEND.docxjeanettehully
Running Head: SWEET BLEND BUSINESS PLAN
25
SWEET BLEND BUSINESS PLAN
Alita Heckstall
Assignment 4 Bus 599 Strategic Management
Dr. Andrea Banto
Strayer University
September, 2019
EXECUTIVE SUMMARY
The Sweet Blend Company is a nonalcoholic beverage company that will be located at San Francisco, California. It was first started as a small scale business with the main clients being the local community. The location was chosen due to the vast market potential from the large population, which also reduces the cost of operation incurred in transport and labor outsourcing. The Company aims at creating a significant impact on the market by creating healthier products than the competitors. The healthy products choice is because of the observation that more people are turning to healthy products and doing away with products that are not beneficial to their health.
The nonalcoholic beverage industry has seen an influx of competitors in the recent past with more companies switching towards the production of these products. Giant companies like Cola and Red bull have been diversifying their products to include more health beneficial products which have enabled them to maintain the market niche that they had. However, Sweet Blend will focus on the production of top-notch, quality juice products, which will be a distinguishing factor of our products.
The leading target group for our products has been identified as the working class in the entire population, which falls between the ages of 24 to 54. This choice was mainly facilitated by the fact that this group contains the most significant number among the total population of the county. Apart from providing a substantial amount of consumer market, it is also worth noting that this number contains a high number of the working class in the population, thus influencing their consumer behavior positively.
The main competition in the area will be Red Bull and Monster Energy. Monster Energy, having been established in San Francisco coupled with the low prices for their products, has managed to create high-level customer loyalty which it has been able to maintain through a dynamic online presence thus creating an online community of consumers. Red Bull, on the other hand, has increased its portfolio to include a series of other nonalcoholic drinks that are more favorable to consumers' health, for example, the Red Bull apple drink. However, due to the history of the competitors on the use caffeine and lack of product diversification, the Company will be keen to specialize in the production pure juices with the only necessary additives like preservatives and water. The Company is going to manifest on the reliable name and roots it had from the community where they first started selling to create a strong brand name.
Sweet Blend, as a company formed during the digital error, will be keen to utilize the various social media platforms like Facebook, twitter, and Instagram to promote the product and the C ...
As strategy director, I was responsible for leading a team of six people in devising a research-backed strategic plan for a comprehensive marketing campaign.
I wrote over 90% of the content and organized the layout for pages 3 through 6, but did not take part in the overall design or production of the plans book.
Running head BUSINESS PLAN1BUSINESS PLAN2Operation .docxjoellemurphey
Running head: BUSINESS PLAN
1
BUSINESS PLAN
2
Operation Management
Vernette Nathan
Strayer University
Dr. Sandra R. Bryant
Bus 599
30 November 2015
Name and significance
Luxury Beverage Company is one of the many exclusive licensed distributors of energy drinks. The Upscale Beverage is one of its products, which has gained utmost significance and popularity among other non-alcoholic drinks (Bohm, 2010). The company’s head office is situated in Durban, South Africa. This is a privately held company founded in 2010 with a capacity of 100 employees in each of its branches. I have chosen an upscale beverage, putting into consideration three major reasons. These reasons make the company highly significant amongst the entire population it serves and more so, to stay ahead of its competitors first, being a new product; most consumers are eager to try it. Secondly, the organization is well known for its good public image and above all, its expertise in producing energy drinks over the years (Hartline, 2002). Finally, for the case of Upscale Beverage, the name itself suggests a completely elevated product, which attracts a majority of consumers. The major aim is to offer quality products for its customers and more so, ensure that market gaps are well filled for the sake of customer satisfaction.
Mission statement and future growth rate
Luxury Beverage Company has a profound mission statement, which stands by three major descriptions;
a) To refresh the entire world with the mind, body and spirit.
b) To be an inspiration especially in moments of optimism and more so, create happiness through the company’s brands and actions.
c) To create exquisite value and make a difference in the beverage industry.
Basing consideration on competitors in the beverage industry at large, Luxury Beverage Company has to come up with strategies that will in turn provide the organization a better position in the industry. There have been numerous market entrants into the beverage industry over the past two years. Competitive advantage is desired by al organizations. Therefore, the Upscale Beverage has to be considered one of the best in the industry, for Luxury Beverage Company to have a competitive advantage. With such a trend, it is evident that the organization may be successful only it sufficient strategies are formulated and more so, in the event that formulated policies are sufficiency implemented.
Strategic position
Strategic positioning entails the development of intended objectives and specific and applicable approaches to situations that are most likely to occur within the organization operations and other activities. The Luxury Beverage Company is specific in its goal alignment and formulation of policies within the consumer goods market. Considerable steps have been taken to ensure that communication to personnel is prioritized and more so, that the firm and personnel in general are operating towards the firm's stated goals and objectives. To distinguis ...
Running head BUSSINESS PLAN DRAFT1BUSSINESS PLAN2Bu.docxsusanschei
Running head: BUSSINESS PLAN DRAFT
1
BUSSINESS PLAN
2
Business Plan Draft
BUS 599
Avery Clementin
Dr. Daniel Goldsmith
November 29, 2016
TABLE OF CONTENTS
COMPANY DESCRIPTION AND SWOT ANALYSIS 3
COMPANY NAME AND SIGNIFICANCE 3
WEFIT’S COMPANY MISSION STATEMENT 3
TRENDS IN THE NON-ALCOHOLIC BEVERAGE INDUSTRY 3
WEFIT’S STRATEGIC POSITION 4
OVERVIEW OF WEFIT’S DISTRIBUTION CHANNELS 5
RISK ANALYSIS OF WEFIT COMPANY 5
SWOT ANALYSIS 6
MARKETING PLAN AND SALES STRATEGY 6
SALES STRATEGY 7
COMPANY’S TARGET MARKET 8
ANALYZE THE TYPES OF CONSUMERS 8
COMPANY’S MARKET COMPETITION 10
COMPETITION FACTORS 11
JUSTIFICATION OF COMPANY STRATEGY 11
WEFIT DIET DRINK FIVE FS 12
ETHICS AND SOCIAL RESPONSIBILITY 13
COMMITMENT OF THE COMPANY 13
EFFECTS OF WEFIT ACTIVITIES ON THE ENVIRONMENT AND HOW TO MITIGATE THEM 13
CHOICE OF PACKAGING 13
DISPOSAL OF BOTTLES 14
HEALTH ISSUES 14
COMPANY’S PLAN TO REACH THE APPROPRIATE MARKET 15
BUSINESS PLAN FINANCIALS 15
STRATEGIC FINANCIAL PLANNING TECHNIQUES 15
BUDGETING 16
PRICING ANALYSIS 16
EVALUATING COSTS 16
CASH FLOW MANAGEMENT 17
PERFORMANCE ANALYSIS 17
REFERENCES 18
Company Description and SWOT Analysis
Company Name and Significance
The name of my Non- alcoholic beverage (NAB) company is WeFit Diet Drinks. This company deals with the production and the manufacturing of the non-alcoholic beverages that have zero calories content. The significance of this beverage is to provide soft drinks to the people who enjoy the various tastes of different sodas, but they are no longer willing to indulge in drinks that have the calories as a measure of ensuring a healthy lifestyle. This company will provide drinks with different flavors just like the other sodas. These drinks will aid in meeting the needs of the people who have decided to adopt healthy lifestyles such as avoiding the high-calorie content drinks.
WeFit’s Company Mission Statement
The mission statement of the WeFit Diet Drinks is to ensure the provision of sophisticated and inviting diet soft drinks that do not mislay the authenticity of the people health habits. As a company, we are committed to ensuring that we meet the various needs of our customers through the provision of high-quality products, to ensure that they are satisfied and also provide a high level of professionalism. In addition to this, we are also aiming at making a difference and ensuring the creation of value as a company.
Trends in the Non-Alcoholic Beverage Industry
One of the trends in the non-alcoholic beverage industry is that there is a revolution whereby the sugary drinks and juices sales are likely to slip. This is a result of the increasing need for the development of new and healthy beverages and other brands that are much healthier than the prevailing ones. In the developed countries, many people have become more sensitive to health ...
Running head: STEELNUTRIDRINK 1
STEELNUTRIDRINK 2
SteelNutridrink Non-Alcoholic Beverage Company
Kizzie Griffin
Dr. Vanessa Graham
BUS 599
Strayer University
7/18/2017
Company and its significance
The company in question is Steel Nutri-drink Non-Alcoholic Beverage Company. The company will be manufacturing, processing and distributing the non-alcoholic beverage to the beverage markets. The rationale and foundation behind the creation, manufacturing and processing of the Steel Nutri-drinkis based on the motivation and need to provide a drink that gives the customer value for their money, instantaneous energy, is refreshing and still healthy. Other companies operating in the market have not managed to satisfy these needs of consumers. This is based on the fact that other drinks contain a lot of calories and sugars that may lead to obesity and other related health complications and are also costly at the same time. All areas that other competitors have not tapped into will be fully taken care of by Steel Nutri-drink.
Mission Statement
The mission statement for the company is “To be a global leader in the provision of efficient and timely energy drinks for all our customers, provide value for their money and achieve sustainability for the environment and all our workers.” The mission statement enables the company to remain focused and committed to achieving its goals and achieve consumer satisfaction. This will also enable it work towards maintaining the competitive edge in the highly competitive beverage markets. The provision of efficient and timely energy drinks gives the company direction. This reminds workers in the organization why the company is in existence. This is what will make the organization to be successful. Offering customers value will act as a “North Star,” which keeps each and every worker clear on the direction of Steel Nutri drink. Efficiency and value will help focus the future of the company. The mission will tell workers of the company what they are doing today as well as what they will do in the future.
The trends in the non-alcoholic beverage industry
There are some changes that are being experienced in the beverage market. Among the changes is the growth of energy, water, and sports drinks brands. Directing attention to only carbonated drinks is now a thing of the past. Much effort by organizations is directed towards producing and selling healthy beverages (Granato, Branco, Nazzaro, Cruz, & Faria, 2010). The other trend is reworking recipes. Most brands that have been in market for a long time now have to be reformulated. They have to be replaced with revamped version as well as have few calories. Also, there is a shift towards having smaller cans and bottles. Having smaller cans and bottles makes the players in the non-alcoholic be ...
Running head HUDSON VALLEY SWEET CIDER CORPORATION BUSINESS PLA.docxcowinhelen
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 SWEET BLEND BUSINESS PLAN25SWEET BLEND.docxjeanettehully
Running Head: SWEET BLEND BUSINESS PLAN
25
SWEET BLEND BUSINESS PLAN
Alita Heckstall
Assignment 4 Bus 599 Strategic Management
Dr. Andrea Banto
Strayer University
September, 2019
EXECUTIVE SUMMARY
The Sweet Blend Company is a nonalcoholic beverage company that will be located at San Francisco, California. It was first started as a small scale business with the main clients being the local community. The location was chosen due to the vast market potential from the large population, which also reduces the cost of operation incurred in transport and labor outsourcing. The Company aims at creating a significant impact on the market by creating healthier products than the competitors. The healthy products choice is because of the observation that more people are turning to healthy products and doing away with products that are not beneficial to their health.
The nonalcoholic beverage industry has seen an influx of competitors in the recent past with more companies switching towards the production of these products. Giant companies like Cola and Red bull have been diversifying their products to include more health beneficial products which have enabled them to maintain the market niche that they had. However, Sweet Blend will focus on the production of top-notch, quality juice products, which will be a distinguishing factor of our products.
The leading target group for our products has been identified as the working class in the entire population, which falls between the ages of 24 to 54. This choice was mainly facilitated by the fact that this group contains the most significant number among the total population of the county. Apart from providing a substantial amount of consumer market, it is also worth noting that this number contains a high number of the working class in the population, thus influencing their consumer behavior positively.
The main competition in the area will be Red Bull and Monster Energy. Monster Energy, having been established in San Francisco coupled with the low prices for their products, has managed to create high-level customer loyalty which it has been able to maintain through a dynamic online presence thus creating an online community of consumers. Red Bull, on the other hand, has increased its portfolio to include a series of other nonalcoholic drinks that are more favorable to consumers' health, for example, the Red Bull apple drink. However, due to the history of the competitors on the use caffeine and lack of product diversification, the Company will be keen to specialize in the production pure juices with the only necessary additives like preservatives and water. The Company is going to manifest on the reliable name and roots it had from the community where they first started selling to create a strong brand name.
Sweet Blend, as a company formed during the digital error, will be keen to utilize the various social media platforms like Facebook, twitter, and Instagram to promote the product and the C ...
As strategy director, I was responsible for leading a team of six people in devising a research-backed strategic plan for a comprehensive marketing campaign.
I wrote over 90% of the content and organized the layout for pages 3 through 6, but did not take part in the overall design or production of the plans book.
Running head BUSINESS PLAN1BUSINESS PLAN2Operation .docxjoellemurphey
Running head: BUSINESS PLAN
1
BUSINESS PLAN
2
Operation Management
Vernette Nathan
Strayer University
Dr. Sandra R. Bryant
Bus 599
30 November 2015
Name and significance
Luxury Beverage Company is one of the many exclusive licensed distributors of energy drinks. The Upscale Beverage is one of its products, which has gained utmost significance and popularity among other non-alcoholic drinks (Bohm, 2010). The company’s head office is situated in Durban, South Africa. This is a privately held company founded in 2010 with a capacity of 100 employees in each of its branches. I have chosen an upscale beverage, putting into consideration three major reasons. These reasons make the company highly significant amongst the entire population it serves and more so, to stay ahead of its competitors first, being a new product; most consumers are eager to try it. Secondly, the organization is well known for its good public image and above all, its expertise in producing energy drinks over the years (Hartline, 2002). Finally, for the case of Upscale Beverage, the name itself suggests a completely elevated product, which attracts a majority of consumers. The major aim is to offer quality products for its customers and more so, ensure that market gaps are well filled for the sake of customer satisfaction.
Mission statement and future growth rate
Luxury Beverage Company has a profound mission statement, which stands by three major descriptions;
a) To refresh the entire world with the mind, body and spirit.
b) To be an inspiration especially in moments of optimism and more so, create happiness through the company’s brands and actions.
c) To create exquisite value and make a difference in the beverage industry.
Basing consideration on competitors in the beverage industry at large, Luxury Beverage Company has to come up with strategies that will in turn provide the organization a better position in the industry. There have been numerous market entrants into the beverage industry over the past two years. Competitive advantage is desired by al organizations. Therefore, the Upscale Beverage has to be considered one of the best in the industry, for Luxury Beverage Company to have a competitive advantage. With such a trend, it is evident that the organization may be successful only it sufficient strategies are formulated and more so, in the event that formulated policies are sufficiency implemented.
Strategic position
Strategic positioning entails the development of intended objectives and specific and applicable approaches to situations that are most likely to occur within the organization operations and other activities. The Luxury Beverage Company is specific in its goal alignment and formulation of policies within the consumer goods market. Considerable steps have been taken to ensure that communication to personnel is prioritized and more so, that the firm and personnel in general are operating towards the firm's stated goals and objectives. To distinguis ...
Impact of Soft Drinks Advertisement on Consumers’ buying BehaviorAI Publications
The principle of the study was to review on the impact of soft drinks advertisement on consumers buying behavior, a case study of SBC Tanzania Limited. Specifically, the researcher intended to `evaluate the effects of digital advertisements on consumers' buying behavior of Pepsi product, to assess the effects of print advertisements on consumers' buying behavior of Pepsi product and to assess the effects of outdoor advertisements on consumers' buying behavior of Pepsi product. This study used both descriptive and inferential statistics research approach because it can cover more than one method of data collection including questionnaires to get information from the customers of SBC Tanzania Limited .The researcher collected data from a total number of 159 respondent’s Primary data were collected using questionnaires method of data collection. Data were analyzed using SPSS. The researcher revealed that the organization applies digital advertisements in attracting consumers of Pepsi product. The most used kind of digital advertisements applied by the organization in attracting consumers of Pepsi product includes display advertising. The study also revealed that digital marketing contributes in a large extent on influencing the buying behavior of the customers. The study recommended that; cross-promotion is crucial and can help to extend the personalized, targeted experience that the advertising has already provided. Display adverts should be supported with a structured follow-up such as email and backed up within other channels, not only does this offer consistency to the customer and a nudge down the sales funnel, it can offer retailers with extremely useful insights. If SBC Tanzania Limited already have a control of the Pepsi product data, SBC Tanzania Limited can use this content outside of digital advertising.
Running head NON-ALCOHOLIC BEVERAGE COMPANY 1NON-ALCOHOLIC B.docxjeanettehully
Running head: NON-ALCOHOLIC BEVERAGE COMPANY 1
NON-ALCOHOLIC BEVERAGE COMPANY 5
Non-alcoholic Beverage Company (Matunda Fresh Juices Company)
Student’s name:
Professor’s name:
Course title:
Date:
The non-alcoholic beverage company for choice is fresh juice manufacturing firm named Matunda Company. The entity intends to produce and distribute fresh juices made from mango, pineapple, oranges among many other local fruits varieties. The name ‘matunda’ signifies the urge to connect with nature fruitfully. The motive for producing and selling the products is improving the overall health of the population while earning profitability for growth and CSR initiatives.
The revised non-alcoholic company aims at restoring the standards of production of fresh juice using organic farm produce. The mission for Matunda juice manufacturer is to become the leading health-conscious fresh juice distributor in North America providing products at affordable prices while maintaining relations with customers (Abrams, 2003, p. 72). The mission aligns with the aspiration of the masses in the target market of consuming healthy products that help the body combat ailments associated with lack of specific nutritional elements in the body. The company envisages the possibility of carving a niche as leading brand suppliers for health-conscious drinks to consumers.
Matunda plans to operate sustainably by capitalizing on the needs of consumers, then deploying strategies that ensure that the production and distribution prioritizes the well-being of the target population. According to the trends in the market, non-alcoholic beverage firms are targeting health-conscious consumers (Olsen, 2011). However, the ventures provide misleading information concerning the nutritional components of the beverages supplied to consumers. The businesses are instead prioritizing profitability in opting to invest in scientific technologies that integrate preservatives as natural components for consumables. The reporting on the course book about the trends in consumable indicates the surge in interest in the consumption of organic products. Interestingly, the significant majority of products available in the stores in the US is carbonated and has a long shelf life. The consumers use artificial sugars in the production of the components.
Additionally, trends indicate that manufacturers invest massive funds in promoting the products as opposed to concentrating on addressing health concerns related to the consumption of nonalcoholic beverages (Olsen, 2011). In the US, the demand for juices is on the rise with at least each household consuming the products daily. The figures surpass the demands for dairy products. The chances of the demand growth are high due to sensitization by the media. Television channels and magazines highlight the benefits of consuming natural organic food components. Another discussion concerning the use of nonalcoholic beverages revolves around the surge in ge ...
Worked in a team of six to design an advertising campaign for Naked Juice. Conducted primary and secondary research to strategize a big idea for our campaign. Helped write advertising copy and design creative ideas for print advertisements and adapt to Internet, social media, TV, and Out of Home.
Professor Andrea BantoUnfortunately, your Assignment is 84 simi.docxstilliegeorgiana
Professor Andrea Banto
Unfortunately, your Assignment is 84% similar to another student’s paper or sources and cannot be accepted for grading. Please see the attached Safe Assign Report. The sections in caps and bold represent content from other sources. If you scroll at the bottom, you will see your information to the left and the original source and text to the right.
Shaquinna Wilson.pdf
The academic integrity department evaluates and records these high similarity cases.
You will be allowed to resubmit the paper with a 20% penalty as a one-time exception.
You can adjust your paper and submit original content (paraphrase and cite any sources used) as soon as you can but by Saturday, March 7, at midnight. This is a one-time exception and other resubmissions will not be allowed.
You should not use other students’ papers as a source. This may not be flagged by Grammarly but Safe Assign has a database of all student papers submitted at Strayer
Be sure to submit only original work for the remainder of the class and program. Check your work in Grammarly before submitting it to the class and ensure you have 100% original content, paraphrased correctly and that you cited all your sources appropriately (in-text citation and references at the end). Safe Assign is a strong plagiarism checker and they store all Strayer submissions in their database in addition to web sources.
If you submit another discussion or assignment in this class with high similarity, additional consequences may apply, including suspension.
Running Head: REVISED COMPANY DESCRIPTION 2
REVISED COMPANY DESCRIPTION 2
Company Description and SWOT Analysis
Student’s Name
Professor’s Name
Course Title
University Affiliation
Date
Revised Non-Alcoholic Beverage Company name and an explanation of its significance
The name of my non-alcoholic beverage company is Fresh Fruit Juice. Besides, the name is significantly established to demonstrate the value and quality attached to the brand, including its beverage. Moreover, Fresh Fruit Juice is focused on promoting healthful drinking amidst citizens as well as family setting (Cornelsen et. al.,2017)). Furthermore, it is intended to ensure that customers who consume the product are capable of executing their daily tasks without encountering adverse effects related to alcoholic drinks. Also, the name Fresh Fruit Juice is an ideal of quality that is delivered to the customers who consume the product.
Also, the company is looking forward to manufacturing non-alcoholic tropical fizz. Furthermore, the ingredients associated with my company's fresh juice will include strawberries, kiwi, mango, as well as pineapples.
Revised company’s mission statement and rationale for its components
The mission statement for the Fresh Fruit Juice company is to promote quality life for healthy and happier consumers every day. Besides, the fresh fruit juice purposefully exists to enhance quality life by encouraging lifestyles of he ...
Running Head MARKETING PLAN AND SALES STRATEGY1MARKETING PLA.docxcowinhelen
Running Head: MARKETING PLAN AND SALES STRATEGY 1
MARKETING PLAN AND SALES STRATEGY 3
Marketing Plan and Sales Strategy
Company’s Target Market
The target market for Fruitfit Company that is located in the city of Samut Prakan, Thailand, consists of both the youths and the aged population. The age bracket of the targeted population is between 24 to 70 years of age. The fruits and vegetable beverages target the age group that is cautious of their health regarding harmful chemicals in soft drinks. The herbs contained in the beverages of Fruitfit Company are also regarded for medicinal purposes. The product of the company does not target any specific demographic groups in terms of education, income, or ethnic group. However, the 24-70 age groups are the primary target of the company since the youths and the adults are the majority of the city while the herbal content of the beverages targets the aged population. As per the age structure of Thailand, the 25-54 age group accounts for 46.32% of the total population of the nation (The World Factbook., n.d). The company is located in the central part of the city, which has an average population of 388,920 individuals. The targeted individuals in the city are people who consider natural products that are free of chemicals. Their taste is in line with the mission of the company, which is aimed at providing the fruit and vegetable beverages that are natural and free of harmful chemicals.
Company’s Market Competition
The marketing strategy that is deployed by Fruitfit Company to obtain the competitive advantage is through differentiation (Sherlekar, Prasad & Victor, 2010). It is achieved through the production of the organic beverage rather than the commercial ones. Considering that stable companies that manufacture non-alcoholic beverages are a vital threat in competing for the market, the organization decided to venture into the manufacture of the fruits and vegetable beverages and integrated with herbs. The approach is appropriate to attain the competitive advantage since there is global awareness regarding harmful chemicals that exist in the commercial drinks. Citizens are moving away from the commercial drinks since their chemical content is posing a harmful risk to their health. The global awareness of such risks has given Fruitfit Company the competitive advantage since people prefer taking their products. In addition, Fruitfit Company has numerous outlets within the city and across the nation that deliver the beverage close to the clients which will ease access by the buyers.
The organization also chose fruits and vegetables as ingredients in its beverage since they are readily available from the farmers and are less expensive. Competition is the major challenge in the non-alcoholic beverage industry, which prompts each company producing such beverages to obtain differentiated approaches to obtain the competitive advantage. Therefore, Fruitfit Company took the approach of producing the or ...
Running head COMPANY DESCRIPTION AND SWOT ANALYSIS .docxsusanschei
Running head: COMPANY DESCRIPTION AND SWOT ANALYSIS
1
Company Description and SWAT Analysis 5
Company Description and SWOT Analysis
Andrea Bryant
Strayer University
Dr. Denel Pierre
BUS599: Strategic Management
November 4, 2017
My NAB Company is named Pure Sate. The name is intended to display the value devoted to the brand and its drinks. The Nonalcoholic “Pure Sate” is intended to promote both healthy, pure, thirst quenching drinks among individuals, in a healthy family setting. Pure Sate ensures that those who drink the product are able to continue their normal daily activities without experiencing the aftermaths associated with alcoholic beverages. The name “Pure Sate” is also a characteristic of the clean content moods that are experienced by those who drink the beverage. This nonalcoholic thirst-quencher is to be accompanying with happy, healthy, and festive moments. These drinks consistently extend happiness into humanity by giving off a safe, friendlier, and healthier vibe.
The Pure Sate non-alcoholic drinks just so happen to gratify the joyful moments of friends, families, and cultures by encouraging healthy drinking lifestyles and temperate moments. This can be achieved on an individual level which will trickle down to friends, then family, different cultures, and realms.
The mission statement, “Discharging great vibes for a more healthy, and happier lifestyle” will be the driving slogan for the drink.
Themodern-day social responsiveness is fluctuating to the healthy effects of alcoholic beverages and spreading quickly (Berry, 2017). The snowballing effect of illnesses and other health situations related to alcohol use; most individuals in the society are steering clear from bevarages with high alcohol content to those with very little or no alcohol.
The nonalcoholic beverage segment is quickly growing in admiration among the international residents. Individuals are fluctuating to the beverages that are not only relieving more contented instants but have no impairment to their health circumstances. Folks are also spending more time being involved in celebratory moments and therefore require drinks that will be unlawful, informally, and morally acceptable to all affiliates of humanity. “Many grocery consumers have recognized a product’s fresh, clean and sustainable benefits among their top purchase priorities when it comes to healthier choices.” (Gilbert, L. 2017)
The “Pure Sate” experience will meet all trends since it’s not only nonalcoholic, meaning it can be consumed by all from children to elderly, it has natural vitamins and additional supplements that improves the oversll health of its consumers. Also, Pure Sate beverages will leave you without an after-effect and inebriating aptitude making it suitable for all occasions.
Pure Sate pursues the finest value product spot in the market. This involves generating a respected ...
Running Head COMPANY ANALYSIS1COMPANY ANALYSIS 7.docxsusanschei
Running Head: COMPANY ANALYSIS 1
COMPANY ANALYSIS 7
Company Description and SWOT Analysis
Q #1
The McDonald Brothers is a NAB firm that provides frozen drinks including desserts, soft drinks, and milkshakes, manufactured from the fresh raw materials from the local farmers. The company can produce its beverages from a mixture of different flavors of fruits.
Q #2
The McDonald Brothers is a firm that supports and encourages lifestyles with by producing tasty and healthy beverages from fresh ingredients. The company’s mission is to enhance diets through the creation of flavorsome beverages that is made up of tasty and healthy raw materials such as milk, fresh fruits, juices, and vegetables. Through making of frozen beverages with nutrients from varieties of ingredients, the company ensures a nourishing and balanced diet for the consumers. The firm is aimed at using ingredients from the local farmers to enhance our social responsibility and also to support the activities of the local farmers. We are also focused on becoming a regionally known firm that capitalizes on the individual and families’ interests by making beverages as per the taste and preferences of the consumers. The company is at startup stage.
Q #3
Trend
The use of non-alcoholic beverages has tremendously increased in the country in the last few decades. This is because the population has shown a lot of concerns about their health. Most of the Americans have turned to be very sensitive to the needs of their health. They are also aware of the dangers of alcohol in the body. The majority of Americans have changed their consumption habits whereby they skip meals, and they only depend on snacks as perfect substitutes. Vigorous campaigns against alcohol have been held across the globe by various organizations, and this has enhanced the production of non-alcoholic beverages due to constant switching demands of the population. The McDonalds drink will, therefore, help the consumers as it is hangover free and the drivers can also drink it and drive. With the above qualities of our beverage, we expect to expand our markets to various regions globally at the rate of 15-18%. We expect to achieve this through market research to increase the qualities as per the customers’ tastes and preferences and also to create awareness about our brands to different potential consumers. The research conducted by Mintel indicates that approximately 56% of Americans consume snacks
The three reasons for choosing the McDonald Brothers (smoothies firm) is because it produces healthy beverages. The other one is because the products can be substituted for snack or milk and the last reason for choosing McDonald's is because the beverage is easy to make and portable. With the simple procedure of making smoothies, if one has the right tool, he can make it anywhere.
Q #4
Strategic position for the beverages
The main goal of the Company is to be the leading producer of non-alcoholic beverages in the ...
Last Name 2Marketing Plan for Biotic JuiceStuden.docxpauline234567
Last Name 2
Marketing Plan for Biotic Juice
Student Name
University Affiliation
Course
Professor
Date
Introduction
In the 21st century, health issues have become rampant globally. Despite its benefits, many people avoid using GMO products, which harm human life (Jon Yaneff, 2015). Health and awareness-related products have gained fame and interest as it rewards people with a healthy lifestyle. Many institutions have emerged to ensure enough diversified produce is available to customers and fill the market gap. Juice and vegetable industries aim to produce foodstuffs that suit their customers' local and international preferences. Competitive industries research and identify premium ingredients, including turmeric, garlic, and vegetables such as cucumber, celery, spinach, carrot and broccoli, that stretch top blend in Juice to suit customers' health needs. However, reports reveal environmental hazards due to the release of carbon monoxide from industrialized beverage production (Essien et al., 2021). This marketing plan focuses on Biotic Juice production and retailing. The strategy focuses on how natural Biotic Juice products will be marketed.
Biotic Juice
The Biotic Juice is featured as a drink extracted from various fruits and blended with vegetables. The beverage can be ingested with droughts, cookies, macrons, or fruit salad. The product is 100% organic and contains entire nutritional composition that fits the customer's health target across all ages. The beverage is presented as cold-pressed, free from chemicals and Genetically Modified Organisms (GMOs). The Biotic Juice contains no added sugars, calories or junk. The Juice is prepared on customers' order, served fresh without any junk obtainable with it.
Market
a.
Product market
Over the past two years, the beverage industry's inventiveness has rapidly increased. The fundamental causes of the rapid shoot in this product industry are increased necessity for consumer nutrition and healthy lifestyle. Additionally, customer preferences have shifted from industrialized drinks and beverages with micro health hazards. According to (Statista, 2021), the juice segment, from a global perspective, has shot by 5.43%, which projects an increase in a market volume of $134.80 billion by 2027. About 23% of consumers in the US take Juice daily. Since 2006, New York residents have preferred 100% fruit juice with no added sugar, which is our market advantage.
b.
Geographical market location
The environment of business operation is an essential component that promotes business success. Environmental reasons drive the demand for Biotic Juice in a given country (Pandit & Suman, 2022). For instance, juice consumption in New York city increases by about 12% during summer and winter. The personal health aspect of a consumer getting refreshments during summer and an immunity boost from fruit juice during winter increases demand.
c.
Demographic factors
New Yo.
8 Profitable Business Plans to Start in 2021- Pulp Based Fruit Drink, Active Pharma Ingredients (API), Activated Bamboo Charcoal, Citric Acid, Water Park, Castor Oil from Castor Seeds, Cashew Nut Shell Liquid (CNSL), Sterile Water (Sterilized Water)
Coming up with a great business idea is just the beginning of your journey as an entrepreneur. Best startup business ideas means a lot to your startup business growth. People today follow their dreams and choose their passion over money. They are always in search of best startup business ideas which can feed their passion. They don’t want to be get retired at the age of 60. They seek for happiness index instead of earning a high salary while living in big cities.
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Mill proposes his Art of Life, but he also insists that it is not ve.docxhealdkathaleen
Mill proposes his Art of Life, but he also insists that it is not very developed -- there is an immense amount of work to be done to get it in shape. We know relatively little about what will actually make our lives richly moral, useful, and beautiful. What sort of things might contribute to improving our understanding of how to enrich our lives in this way? That is, what could someone do to develop and extend the Art of Life?
DUE by wed @ 10am central time
somebody have something useful post it and i will look/buy
.
Milford Bank and Trust Company is revamping its credit management de.docxhealdkathaleen
Milford Bank and Trust Company is revamping its credit management department to more effectively manage credit analysis. As the credit manager for the bank, draft a 750-word report for the board of directors explaining the three C's of credit. Make sure to address the following:
Character
Capacity
Capital
Also, explain what the acronym CAMEL means, which is used with the third C (capital)?
.
milies (most with teenage children) and the Baby Boomers (teens and .docxhealdkathaleen
milies (most with teenage children) and the Baby Boomers (teens and college-age young people). The film industry and the changes to it are deeply divided in this schism. On the one hand, musicals (Sound of Music), World War II war films (The Great Escape) and historical epics (Dr. Zhivago) drove the adult market. Rebellion, sex and individual-minded heroes drove the youth market (Easy Rider, Bonnie and Clyde, The Graduate.) By the end of the decade, the tastes of the counter-culture youth had won. Anti-war film (Catch-22), flawed characters as heroes (The Good, the Bad, and the Ugly) and sexual issues (Midnight Cowboy, Butterfield 8, Valley of the Dolls) dominated the screen.
Question 1: What are some of the benefits of the Boomer generation's rebellion and changes to Hollywood in the 1960s?
Question 2: What are some of the drawbacks of having film dominated by the demands of an audience that was under the age of 25?
Directions:
Using word processing software to save and submit your work, please answer the following short answer questions. All responses to questions should be one to two paragraphs, composed of five to seven sentences, in length.
Your responses should include examples from the reading assignments.
1. Trace the development of the early documentary film career of Jean Rouch. What were his objectives as an ethnographic filmmaker during the 1950s? What formal techniques did he use to express these objectives?
2. How did Direct Cinema succeed in transforming documentary filmmaking during the late 1950s and early 1960s? Why did American documentary makers adopt this style, and in what ways did this choice influence their films? In what ways were their films also influenced by technological developments?
3. Compare and contrast two of the most prominent trends in avant-garde filmmaking from the 1940s to the 1960s: the experimental narrative and the lyrical film. How did both trends make use of abstract imagery and structure, and for what purposes?
4. What were the notable (and notorious) qualities that characterized the American underground film of the 1960s?
5. Analyze the important social, economic, and industrial factors leading up to the emergence of the New Hollywood in the early 1970s. What were the causes of the industry-wide recession of 1969 to 1970? What new audiences did the Majors subsequently attempt to target?
6. How did European art cinema conventions influence the filmmakers of the New Hollywood? In what ways did art cinema narrational and stylistic techniques infuse new life into standard Hollywood genres?
7. Trace the evolution of the Hollywood studio system's economic recovery in the middle and late 1970s. What were the important blockbusters of the period?
8. Compare and contrast the approaches of Steven Spielberg and Martin Scorsese to studio filmmaking. In what ways did each director "revise" genres from the classical Hollywood era? How did t.
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The principle of the study was to review on the impact of soft drinks advertisement on consumers buying behavior, a case study of SBC Tanzania Limited. Specifically, the researcher intended to `evaluate the effects of digital advertisements on consumers' buying behavior of Pepsi product, to assess the effects of print advertisements on consumers' buying behavior of Pepsi product and to assess the effects of outdoor advertisements on consumers' buying behavior of Pepsi product. This study used both descriptive and inferential statistics research approach because it can cover more than one method of data collection including questionnaires to get information from the customers of SBC Tanzania Limited .The researcher collected data from a total number of 159 respondent’s Primary data were collected using questionnaires method of data collection. Data were analyzed using SPSS. The researcher revealed that the organization applies digital advertisements in attracting consumers of Pepsi product. The most used kind of digital advertisements applied by the organization in attracting consumers of Pepsi product includes display advertising. The study also revealed that digital marketing contributes in a large extent on influencing the buying behavior of the customers. The study recommended that; cross-promotion is crucial and can help to extend the personalized, targeted experience that the advertising has already provided. Display adverts should be supported with a structured follow-up such as email and backed up within other channels, not only does this offer consistency to the customer and a nudge down the sales funnel, it can offer retailers with extremely useful insights. If SBC Tanzania Limited already have a control of the Pepsi product data, SBC Tanzania Limited can use this content outside of digital advertising.
Running head NON-ALCOHOLIC BEVERAGE COMPANY 1NON-ALCOHOLIC B.docxjeanettehully
Running head: NON-ALCOHOLIC BEVERAGE COMPANY 1
NON-ALCOHOLIC BEVERAGE COMPANY 5
Non-alcoholic Beverage Company (Matunda Fresh Juices Company)
Student’s name:
Professor’s name:
Course title:
Date:
The non-alcoholic beverage company for choice is fresh juice manufacturing firm named Matunda Company. The entity intends to produce and distribute fresh juices made from mango, pineapple, oranges among many other local fruits varieties. The name ‘matunda’ signifies the urge to connect with nature fruitfully. The motive for producing and selling the products is improving the overall health of the population while earning profitability for growth and CSR initiatives.
The revised non-alcoholic company aims at restoring the standards of production of fresh juice using organic farm produce. The mission for Matunda juice manufacturer is to become the leading health-conscious fresh juice distributor in North America providing products at affordable prices while maintaining relations with customers (Abrams, 2003, p. 72). The mission aligns with the aspiration of the masses in the target market of consuming healthy products that help the body combat ailments associated with lack of specific nutritional elements in the body. The company envisages the possibility of carving a niche as leading brand suppliers for health-conscious drinks to consumers.
Matunda plans to operate sustainably by capitalizing on the needs of consumers, then deploying strategies that ensure that the production and distribution prioritizes the well-being of the target population. According to the trends in the market, non-alcoholic beverage firms are targeting health-conscious consumers (Olsen, 2011). However, the ventures provide misleading information concerning the nutritional components of the beverages supplied to consumers. The businesses are instead prioritizing profitability in opting to invest in scientific technologies that integrate preservatives as natural components for consumables. The reporting on the course book about the trends in consumable indicates the surge in interest in the consumption of organic products. Interestingly, the significant majority of products available in the stores in the US is carbonated and has a long shelf life. The consumers use artificial sugars in the production of the components.
Additionally, trends indicate that manufacturers invest massive funds in promoting the products as opposed to concentrating on addressing health concerns related to the consumption of nonalcoholic beverages (Olsen, 2011). In the US, the demand for juices is on the rise with at least each household consuming the products daily. The figures surpass the demands for dairy products. The chances of the demand growth are high due to sensitization by the media. Television channels and magazines highlight the benefits of consuming natural organic food components. Another discussion concerning the use of nonalcoholic beverages revolves around the surge in ge ...
Worked in a team of six to design an advertising campaign for Naked Juice. Conducted primary and secondary research to strategize a big idea for our campaign. Helped write advertising copy and design creative ideas for print advertisements and adapt to Internet, social media, TV, and Out of Home.
Professor Andrea BantoUnfortunately, your Assignment is 84 simi.docxstilliegeorgiana
Professor Andrea Banto
Unfortunately, your Assignment is 84% similar to another student’s paper or sources and cannot be accepted for grading. Please see the attached Safe Assign Report. The sections in caps and bold represent content from other sources. If you scroll at the bottom, you will see your information to the left and the original source and text to the right.
Shaquinna Wilson.pdf
The academic integrity department evaluates and records these high similarity cases.
You will be allowed to resubmit the paper with a 20% penalty as a one-time exception.
You can adjust your paper and submit original content (paraphrase and cite any sources used) as soon as you can but by Saturday, March 7, at midnight. This is a one-time exception and other resubmissions will not be allowed.
You should not use other students’ papers as a source. This may not be flagged by Grammarly but Safe Assign has a database of all student papers submitted at Strayer
Be sure to submit only original work for the remainder of the class and program. Check your work in Grammarly before submitting it to the class and ensure you have 100% original content, paraphrased correctly and that you cited all your sources appropriately (in-text citation and references at the end). Safe Assign is a strong plagiarism checker and they store all Strayer submissions in their database in addition to web sources.
If you submit another discussion or assignment in this class with high similarity, additional consequences may apply, including suspension.
Running Head: REVISED COMPANY DESCRIPTION 2
REVISED COMPANY DESCRIPTION 2
Company Description and SWOT Analysis
Student’s Name
Professor’s Name
Course Title
University Affiliation
Date
Revised Non-Alcoholic Beverage Company name and an explanation of its significance
The name of my non-alcoholic beverage company is Fresh Fruit Juice. Besides, the name is significantly established to demonstrate the value and quality attached to the brand, including its beverage. Moreover, Fresh Fruit Juice is focused on promoting healthful drinking amidst citizens as well as family setting (Cornelsen et. al.,2017)). Furthermore, it is intended to ensure that customers who consume the product are capable of executing their daily tasks without encountering adverse effects related to alcoholic drinks. Also, the name Fresh Fruit Juice is an ideal of quality that is delivered to the customers who consume the product.
Also, the company is looking forward to manufacturing non-alcoholic tropical fizz. Furthermore, the ingredients associated with my company's fresh juice will include strawberries, kiwi, mango, as well as pineapples.
Revised company’s mission statement and rationale for its components
The mission statement for the Fresh Fruit Juice company is to promote quality life for healthy and happier consumers every day. Besides, the fresh fruit juice purposefully exists to enhance quality life by encouraging lifestyles of he ...
Running Head MARKETING PLAN AND SALES STRATEGY1MARKETING PLA.docxcowinhelen
Running Head: MARKETING PLAN AND SALES STRATEGY 1
MARKETING PLAN AND SALES STRATEGY 3
Marketing Plan and Sales Strategy
Company’s Target Market
The target market for Fruitfit Company that is located in the city of Samut Prakan, Thailand, consists of both the youths and the aged population. The age bracket of the targeted population is between 24 to 70 years of age. The fruits and vegetable beverages target the age group that is cautious of their health regarding harmful chemicals in soft drinks. The herbs contained in the beverages of Fruitfit Company are also regarded for medicinal purposes. The product of the company does not target any specific demographic groups in terms of education, income, or ethnic group. However, the 24-70 age groups are the primary target of the company since the youths and the adults are the majority of the city while the herbal content of the beverages targets the aged population. As per the age structure of Thailand, the 25-54 age group accounts for 46.32% of the total population of the nation (The World Factbook., n.d). The company is located in the central part of the city, which has an average population of 388,920 individuals. The targeted individuals in the city are people who consider natural products that are free of chemicals. Their taste is in line with the mission of the company, which is aimed at providing the fruit and vegetable beverages that are natural and free of harmful chemicals.
Company’s Market Competition
The marketing strategy that is deployed by Fruitfit Company to obtain the competitive advantage is through differentiation (Sherlekar, Prasad & Victor, 2010). It is achieved through the production of the organic beverage rather than the commercial ones. Considering that stable companies that manufacture non-alcoholic beverages are a vital threat in competing for the market, the organization decided to venture into the manufacture of the fruits and vegetable beverages and integrated with herbs. The approach is appropriate to attain the competitive advantage since there is global awareness regarding harmful chemicals that exist in the commercial drinks. Citizens are moving away from the commercial drinks since their chemical content is posing a harmful risk to their health. The global awareness of such risks has given Fruitfit Company the competitive advantage since people prefer taking their products. In addition, Fruitfit Company has numerous outlets within the city and across the nation that deliver the beverage close to the clients which will ease access by the buyers.
The organization also chose fruits and vegetables as ingredients in its beverage since they are readily available from the farmers and are less expensive. Competition is the major challenge in the non-alcoholic beverage industry, which prompts each company producing such beverages to obtain differentiated approaches to obtain the competitive advantage. Therefore, Fruitfit Company took the approach of producing the or ...
Running head COMPANY DESCRIPTION AND SWOT ANALYSIS .docxsusanschei
Running head: COMPANY DESCRIPTION AND SWOT ANALYSIS
1
Company Description and SWAT Analysis 5
Company Description and SWOT Analysis
Andrea Bryant
Strayer University
Dr. Denel Pierre
BUS599: Strategic Management
November 4, 2017
My NAB Company is named Pure Sate. The name is intended to display the value devoted to the brand and its drinks. The Nonalcoholic “Pure Sate” is intended to promote both healthy, pure, thirst quenching drinks among individuals, in a healthy family setting. Pure Sate ensures that those who drink the product are able to continue their normal daily activities without experiencing the aftermaths associated with alcoholic beverages. The name “Pure Sate” is also a characteristic of the clean content moods that are experienced by those who drink the beverage. This nonalcoholic thirst-quencher is to be accompanying with happy, healthy, and festive moments. These drinks consistently extend happiness into humanity by giving off a safe, friendlier, and healthier vibe.
The Pure Sate non-alcoholic drinks just so happen to gratify the joyful moments of friends, families, and cultures by encouraging healthy drinking lifestyles and temperate moments. This can be achieved on an individual level which will trickle down to friends, then family, different cultures, and realms.
The mission statement, “Discharging great vibes for a more healthy, and happier lifestyle” will be the driving slogan for the drink.
Themodern-day social responsiveness is fluctuating to the healthy effects of alcoholic beverages and spreading quickly (Berry, 2017). The snowballing effect of illnesses and other health situations related to alcohol use; most individuals in the society are steering clear from bevarages with high alcohol content to those with very little or no alcohol.
The nonalcoholic beverage segment is quickly growing in admiration among the international residents. Individuals are fluctuating to the beverages that are not only relieving more contented instants but have no impairment to their health circumstances. Folks are also spending more time being involved in celebratory moments and therefore require drinks that will be unlawful, informally, and morally acceptable to all affiliates of humanity. “Many grocery consumers have recognized a product’s fresh, clean and sustainable benefits among their top purchase priorities when it comes to healthier choices.” (Gilbert, L. 2017)
The “Pure Sate” experience will meet all trends since it’s not only nonalcoholic, meaning it can be consumed by all from children to elderly, it has natural vitamins and additional supplements that improves the oversll health of its consumers. Also, Pure Sate beverages will leave you without an after-effect and inebriating aptitude making it suitable for all occasions.
Pure Sate pursues the finest value product spot in the market. This involves generating a respected ...
Running Head COMPANY ANALYSIS1COMPANY ANALYSIS 7.docxsusanschei
Running Head: COMPANY ANALYSIS 1
COMPANY ANALYSIS 7
Company Description and SWOT Analysis
Q #1
The McDonald Brothers is a NAB firm that provides frozen drinks including desserts, soft drinks, and milkshakes, manufactured from the fresh raw materials from the local farmers. The company can produce its beverages from a mixture of different flavors of fruits.
Q #2
The McDonald Brothers is a firm that supports and encourages lifestyles with by producing tasty and healthy beverages from fresh ingredients. The company’s mission is to enhance diets through the creation of flavorsome beverages that is made up of tasty and healthy raw materials such as milk, fresh fruits, juices, and vegetables. Through making of frozen beverages with nutrients from varieties of ingredients, the company ensures a nourishing and balanced diet for the consumers. The firm is aimed at using ingredients from the local farmers to enhance our social responsibility and also to support the activities of the local farmers. We are also focused on becoming a regionally known firm that capitalizes on the individual and families’ interests by making beverages as per the taste and preferences of the consumers. The company is at startup stage.
Q #3
Trend
The use of non-alcoholic beverages has tremendously increased in the country in the last few decades. This is because the population has shown a lot of concerns about their health. Most of the Americans have turned to be very sensitive to the needs of their health. They are also aware of the dangers of alcohol in the body. The majority of Americans have changed their consumption habits whereby they skip meals, and they only depend on snacks as perfect substitutes. Vigorous campaigns against alcohol have been held across the globe by various organizations, and this has enhanced the production of non-alcoholic beverages due to constant switching demands of the population. The McDonalds drink will, therefore, help the consumers as it is hangover free and the drivers can also drink it and drive. With the above qualities of our beverage, we expect to expand our markets to various regions globally at the rate of 15-18%. We expect to achieve this through market research to increase the qualities as per the customers’ tastes and preferences and also to create awareness about our brands to different potential consumers. The research conducted by Mintel indicates that approximately 56% of Americans consume snacks
The three reasons for choosing the McDonald Brothers (smoothies firm) is because it produces healthy beverages. The other one is because the products can be substituted for snack or milk and the last reason for choosing McDonald's is because the beverage is easy to make and portable. With the simple procedure of making smoothies, if one has the right tool, he can make it anywhere.
Q #4
Strategic position for the beverages
The main goal of the Company is to be the leading producer of non-alcoholic beverages in the ...
Last Name 2Marketing Plan for Biotic JuiceStuden.docxpauline234567
Last Name 2
Marketing Plan for Biotic Juice
Student Name
University Affiliation
Course
Professor
Date
Introduction
In the 21st century, health issues have become rampant globally. Despite its benefits, many people avoid using GMO products, which harm human life (Jon Yaneff, 2015). Health and awareness-related products have gained fame and interest as it rewards people with a healthy lifestyle. Many institutions have emerged to ensure enough diversified produce is available to customers and fill the market gap. Juice and vegetable industries aim to produce foodstuffs that suit their customers' local and international preferences. Competitive industries research and identify premium ingredients, including turmeric, garlic, and vegetables such as cucumber, celery, spinach, carrot and broccoli, that stretch top blend in Juice to suit customers' health needs. However, reports reveal environmental hazards due to the release of carbon monoxide from industrialized beverage production (Essien et al., 2021). This marketing plan focuses on Biotic Juice production and retailing. The strategy focuses on how natural Biotic Juice products will be marketed.
Biotic Juice
The Biotic Juice is featured as a drink extracted from various fruits and blended with vegetables. The beverage can be ingested with droughts, cookies, macrons, or fruit salad. The product is 100% organic and contains entire nutritional composition that fits the customer's health target across all ages. The beverage is presented as cold-pressed, free from chemicals and Genetically Modified Organisms (GMOs). The Biotic Juice contains no added sugars, calories or junk. The Juice is prepared on customers' order, served fresh without any junk obtainable with it.
Market
a.
Product market
Over the past two years, the beverage industry's inventiveness has rapidly increased. The fundamental causes of the rapid shoot in this product industry are increased necessity for consumer nutrition and healthy lifestyle. Additionally, customer preferences have shifted from industrialized drinks and beverages with micro health hazards. According to (Statista, 2021), the juice segment, from a global perspective, has shot by 5.43%, which projects an increase in a market volume of $134.80 billion by 2027. About 23% of consumers in the US take Juice daily. Since 2006, New York residents have preferred 100% fruit juice with no added sugar, which is our market advantage.
b.
Geographical market location
The environment of business operation is an essential component that promotes business success. Environmental reasons drive the demand for Biotic Juice in a given country (Pandit & Suman, 2022). For instance, juice consumption in New York city increases by about 12% during summer and winter. The personal health aspect of a consumer getting refreshments during summer and an immunity boost from fruit juice during winter increases demand.
c.
Demographic factors
New Yo.
8 Profitable Business Plans to Start in 2021- Pulp Based Fruit Drink, Active Pharma Ingredients (API), Activated Bamboo Charcoal, Citric Acid, Water Park, Castor Oil from Castor Seeds, Cashew Nut Shell Liquid (CNSL), Sterile Water (Sterilized Water)
Coming up with a great business idea is just the beginning of your journey as an entrepreneur. Best startup business ideas means a lot to your startup business growth. People today follow their dreams and choose their passion over money. They are always in search of best startup business ideas which can feed their passion. They don’t want to be get retired at the age of 60. They seek for happiness index instead of earning a high salary while living in big cities.
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Question 1: What are some of the benefits of the Boomer generation's rebellion and changes to Hollywood in the 1960s?
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Identify
Liberation theology
Mujerista
theology
Popular religiosity
Mestizaje
James Cone
Gustavo Gutiérrez
‘adamah
‘adam
‘ish
ishsha
ex nihilio
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tardemah
Beersheba
covenant
Moriah
‘hesed
Long Essay
Using
at least
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The Book of Genesis’ two creation stories and their depictions of God, humanity, and the created world.
Hermeneutical process for interpreting biblical texts and the issues taken into consideration
Equality between man and woman, biblical and cultural perspectives.
How did sin enter the world, God’s role, humanity’s role, consequences.
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Midterm Assignment Instructions (due 31 August)
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Foreign Intelligence Entity (FIE) Threat Analysis
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Value:
This Assignment counts for 40% of your Final Course Grade for this course.
Objective:
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Type:
This assignment consists of a research analysis paper approximately
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Topic:
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[Do not select the .
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1.
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Item
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1. Running Head: COMPANY DESCRIPTION AND SWOT
ANALYSIS
COMPANY DESCRIPTION AND SWOT ANALYSIS
Company Description and SWOT Analysis
LaShondra Jackson
Dr. Andrea Banto
Strategic Management
July 21, 2019
Company Name and its Significance
A company name should be distinctive, extendable, and easy to
identify and pronounce, and also provide an idea of the products
offered by the company (Wheelen, Hunger, Hoffman &
Bamford, 2017). The company name which I have chosen is
KoolSprings Water Company. The significance of the name
KoolSprings Water Company is that it gives an identity of the
company and what it will do for business. The company will be
focused on providing drinking water to the market and therefore
choosing the name KoolSprings Water Company is ideal for the
business. The name is also self explanatory of what the
company activities are and therefore it is important because
customers will be able to easily identify it.
Beverage to be produced
The company will be packaging non-alcoholic beverage which
is bottled water for its customers. The product is ideal for the
company to produce because it has a ready market as customers
2. buy drinking water each and every time. The key ingredient for
the product is simply water. Most people prefer pure bottled
drinking water without any added ingredients and this is the
main product to be packaged. Also there will be vitamin bottled
water where the pure drinking water will be added some flavors
to it. The flavors which will be added are lemonade and mixed
berries which will include strawberries, blueberries and
raspberries. Lemonade flavor is one of the most preferred water
products during the summer period while mixed berries water is
one of the well balanced water flavors which can be produced.
Company’s Mission Statement
A mission statement is a brief statement of why the company
exists to do. It will define the values of the company, culture,
plan, essential goals and also ethics (Wheelen, Hunger,
Hoffman & Bamford, 2017). The mission statement of the
company is “At KoolSprings Water Company, our mission is to
refresh lives by providing efficient and reliable products which
meet the customer standards as we strive to be the world leader
in offering pure bottled drinking water”.
Trends in Non-alcoholic Industry
In 2019, consumer wellness and health has increased which has
created a lot of impact in the beverage industry at large. Studies
by UCL indicate that 36% of people aged between 16-24 years
are now abstaining from alcohol ("More young people
abstaining from alcohol, and others drinking less", 2019).
Beverage companies therefore are now tasked with developing
new products which are not only non-alcoholic but which are in
match with the current trends of health and wellness of the
consumers. The trends include:
Functionality
Non-alcoholic industry has recorded an increase in new
products which come with functional benefits. Customers
require products which will be of benefit to them in terms of
their health and wellness. The main product for KoolSprings
Water Company is pure drinking water which is one of the basic
needs our bodies need to remain healthy. With consumers being
3. health conscious, water has been highly recommended and this
is a major boost for the company.
Personalization
Consumers have the increasing desire for products which they
can personalize with as they focus with their path of wellness
and health. This demands that companies in the non-alcoholic
beverage industry to be innovative in coming up with products
which consumers can personalize with. KoolSprings Company
has developed vitamin water with added flavors which are
lemonade and mixed berries. The flavors have the natural taste
which will make consumers personalize with the products.
Alcohol- free alternatives
The consumption of alcohol is reported to have decreased by
1.6% in the year 2018 following a survey by IWSR ("Worldwide
Alcohol Consumption Declines -1.6% – IWSR", 2019). This
happened because consumers have decided to lower their
alcohol intake and focus on their health hence increasing the
demand for non-alcoholic beverages. The company is therefore
going to benefit from the low alcohol intake which will make it
grow fast as there is a ready market for its products.
Sustainability
Consumers have become very conscious on the impact they are
creating on the environment. Sustainability is one of the
important aspects that have impacted the beverage industry at
large. Recently, beverage companies aim at making water and
soft-drinks packaging to be made of 100% recyclable materials
in order to reduce plastic waste and the impact they create on
the environment (Storey, 2010). This is also a goal for
KoolSprings Water Company because it is in the non-alcoholic
beverage industry and it focuses on its consumers who are very
environmental conscious and require less plastic waste to the
environment.
Strategic Position
KoolSprings Water Company strategic position is to have a
key focus on convenience of the products to the consumers. It
will have its bottled water products in both large and retail
4. stores to ensure availability of the products to consumers
because they are essential in their daily lives and also to make
them easily reachable. Also branding is another key focus for
the product to be easily differentiated from those of the
competitors as they all will be placed beside each other.
Overview of the Distribution Channel
A company may have the best products in the market but they
will be of no importance if the consumers do not get them where
they require them. The best distribution channel is the one that
satisfies the customers need by making the products available.
The company will use both direct and indirect distribution
channels where the products will be made available through
directly distributing them to the consumers or the use of
intermediaries such as wholesalers then retailers. The rationale
for using both distribution channels is that the product is
required by everyone and there are occasions where the
company can sell directly to the consumers like during sports
events or even use the intermediaries to supply them in
convenience stores, supermarkets, clubs, gym, or even
restaurants.
Risks Facing the Company
Regulatory risk is the first risk which the company faces. It is
required to ensure quality of its products in accordance to the
laid down consumer protection regulations. They include
standardized procedures, safety of the products and testing
among others. The second risk is prominent ingredient labeling
where food and beverage manufactures have to label their
ingredients in a visible manner. The third risk is safety issues
which are associated with the products. Like the vitamin water
contains high percentage of water which is reach in minerals
and other added flavors and can be attractive to environmental
microbes. KoolSprings Company can mitigate the risks by
ensuring that it follows the required consumer protection
regulation by offering quality and standardized products which
are safe for consumption.
SWOT Analysis
5. SWOT analysis focuses on the strengths, weaknesses,
opportunities and threats affecting a company both externally
and internally. The current and future position of the company
has to be researched in order to develop a good SWOT analysis.
SWOT analysis is conducted in order for the company to build
on the strengths, minimize the weaknesses, grab the
opportunities and work on the threats (Gürel & Tat, 2017).
Strengths
Weaknesses
-Differentiation of products
-Reliable and efficient services in distribution network
-Healthy drinking water products
-High quality managers and employees
-Quality product
-The company is a new entrant and it has to compete with the
market leaders
- Financial capability to engage in the publicity of our products
to compete with big companies like Pepsi Co.
Opportunities
Threats
-Replace alcoholic drinks
-Increased awareness on health issues requiring more water
intake
-Diversification of products in health and wellness
-Advertisement and promotions in events like sport
-unfavorable government regulations
-Environmental issues
-Competition from other companies producing non-alcoholic
beverages such as Coca Cola
-Minimal threat to entry which makes it easier for other
companies to enter the market
6. References
Gürel, E., & Tat, M. (2017). SWOT analysis: A theoretical
review. Journal of International Social Research, 10(51).
Storey, M. (2010). The shifting beverage landscape. Physiology
& behavior, 100(1), 10-14.
UCL News. (2019). More young people abstaining from alcohol,
and others drinking less.
https://www.ucl.ac.uk/news/2018/oct/more-young-people-
abstaining-alcohol-and-others-drinking-less [Accessed 18 Jul.
2019].
Wheelen, T. L., Hunger, J. D., Hoffman, A. N., & Bamford, C.
E. (2017). Strategic management and business policy.
Boston: pearson.
Worldwide Alcohol Consumption Declines -1.6% – IWSR.
(2019). Retrieved 18 July 2019, from
https://www.theiwsr.com/news-and-comment-worldwide-
alcohol-consumption-declines/
NAB Company Portfolio BUS599.docx
NON-ALCOHOLOIC BEVERAGE COMPANY PORTFOLIO
Table of Contents
Note #1 (Company Parameters)4
Note #2 (Equipment & Inventory)5
Note #3 (Personnel, Business Expenses, & Financial Matters)7
Note # 4 (Websites - Data & Statistics)9
Note # 5 (Market Research)10
A guide to the non-alcoholic beverage industry10
Industry overview10
Dominant carbonates category10
Major companies10
7. Understanding consumer craving for soft drinks11
What’s a soft drink made of?11
Stimulants in soft drinks11
Ingredient facts12
Understanding the value chain of the soft drink industry12
Industry Partners12
Bottling and distribution network13
Distribution: Third-party products13
Pricing power13
Key indicators of the non-alcoholic beverage industry14
Factors influencing sector growth14
Consumption expenditure14
Disposable income and consumer confidence14
Understanding the soft drink industry’s key markets15
Income bracket15
Hispanics16
Millennials16
Teens16
The role of branding and advertising in the soft drink
industry17
The importance of advertising17
Global brands17
Strong individual brand portfolios17
Investing in brands18
Why the soft drink industry is dominated by Coke and Pepsi18
A rivalry for the ages19
Threat from new entrants19
Significant investments19
Why growth is sluggish in the non-alcoholic beverage
industry20
Falling demand20
Key indicator—per capita consumption20
Health concerns21
The soda tax21
In challenging times, soft drinks makers optimize and thrive21
Productivity measures21
8. Cost-cutting initiatives22
Soft drink industry now looking to still beverages to boost
sales22
Social pressures forcing change23
Ready-to-drink beverages23
International growth opportunities for the soft drink industry24
Beyond borders24
Growth prospects25
Positive trends25
Competition outside the domestic market25
Strategic deals in the soft drink industry26
Industry alliances26
Recent Pepsi and Coca-Cola deals26
Other deal-making in the sector27
Investing in soft drink companies with ETFs27
Packaged investing27
Consumer staple ETFs28
Note # 6 (History & Industry Data/Forecasting &
Technology)29
Cognitive health appeals to all demographics29
Omega-3s popular ingredient for brain health29
Mental energy30
Focus on claims32
2016 New Product Development Outlook for beverages32
Organic named top trend for new beverages in new year32
Buzzing about flavors33
Creating success35
Natural influence35
Sharing the work36
2016 expectations38
Beverage Industry launches new app39
Introductory video shows how to use Bev Industry Mobile39
(The NAB Company Portfolio will have lists of things that the
BUS599 students would be able to sort through to conduct a
SWOT Analysis and to apply to appropriate sections of the NAB
9. Business Plan.)
Note #1 (Company Parameters)
This is the compilation of Data, Notes, and Information that
have been put together to create a Business Plan, along with
Pro-forma Financial Statements, for a start-up company in the
non-alcoholic beverage industry.
The goal of my business plan is twofold:
1 To help identify and outline all the issues I will need to
address in starting this company.
2 To present to funders to help raise money to finance this
company.
NAB Background:
Melinda Cates has been selling her NAB at County Fairs for the
past 7 years for $2 a bottle. She sells an average of 10
Cardboard cartons each weekend a County Fair is open. From
her calculations, it takes $.56 to make a bottle of NAB when she
calculates all the NAB ingredients and the cost of the bottle and
cap. Her rich uncle, Bill, just died and left her a small
monetary inheritance. However, since he so enjoyed her
homemade NAB, he also left her equipment to start a small
NAB business. Additionally, her uncle left her a facility that
will allow growth to start the business. It has the potential for
expansion in order to meet larger sales goals for the future.
Melinda and I have been close, trusted friends for years. She
knew I attended Strayer University and earned my MBA; so I
agreed to assist her get the business up and running. I have
agreed to put together a NAB Business Plan, and I have agreed
to be the CEO/President of the company for at least the next
five years.
NAB Today:
Parameters for New Company
Here are the parameters in which I must work.
-up: We are not yet in operation. We
already have a “recipe” for a beverage, but we are not yet
making sales at any significant level.
10. -alcoholic
beverage (NAB). It is up to me to decide upon what type of
non-alcoholic beverage I intend to make and market. It can be
sold in individual sizes or wholesale.
my geographical area within a 100-mile radius from my home
address.
excess of one million dollars in revenue by year two. In other
words, this cannot be intended to be a one- or two-person
micro-business.
have already started with friends and family money. However,
at some point, I will need funds from outside investors, either
angels or venture capitalists, depending on how much I project,
I need to raise or receive from a group of individual investors
on Kickstarter.
organizational hierarchy.
to raise money for my personal financial
support for the first six months. In other words, I do not need
to draw a salary for myself for the first six months of
projections. Annual salary will be $55,002 1st year; adjusted to
$110,004 2nd year; finally adjusted to $165,008 for all
remaining years in position.
Note #2 (Equipment & Inventory)
The NAB Financial Worksheets will need to have the value of
this equipment and inventory included.
Some of the items we currently own:
Owned Equipment:
Two (2) NAB Mixer Beverage Filling Machines (mixes up to
200 gallons each) – $28,500 each (value in current $)
11. The Mixer Beverage Filling machine is a rinsing, filling, and
capping (3-in-1) Monobloc machine, imported from Italy.
Because it is equipped with constant temperature controlling
system, it can be applied to fill hot or cold fruit juice, tea and
other beverage into 16 oz. bottles. It is suitable for normal
temperature filling or hot filling 16 oz. bottles. It is one of the
most advanced filling machine at present.
Two (2) Accutek AccuSnap Capper Bottling machines (for
capping bottles) - $9,600 each (value in current $) See Auto
AccuSnap Capper, below.
Four (4) Vehicles (used panel vans) – $10,000 each (value in
current $)
Three (3) Computers (Apple Macintosh) - $1,200 each (value in
current t $)
Graphic Software -$$750 (value in current $)
Leased Equipment:
Labeling machinery - $450/month (in current $)
Printers - $550/month (in current $)
Current Inventory:
Glass Bottles (16 oz.), 24,000 - $33,000 (value in current $)
Labels, 24,000 - $840 (value in current $)
Metal caps, 24,000 - $300 (value in current $)
Cardboard Cartons (holds 48 bottles), 500 - $500 (value in
current $)
NAB-ingredients, enough to make 24,000 bottles - $600 (value
in current $)
12. NOTES on EQUIPMEENT
Accutek AccuSnap Capper - are continuous motion machines
that replace the tedious work of manually pressing and/or
placing snap caps. Accutek AccuSnap Cappers prevent costly
spills by removing human error from this process. This
machine can also help prevent repetitious motion injuries and
strains to your workforce that can result when manually placing
snap caps. Accutek AccuSnap Cappers systems are available in
three different styles, Belt, Roller, and Plunger in order to offer
solutions to a variety of snap cap types. Milk jugs, dropper
inserts, lip balm caps, over caps, “top hat” seals, twist cap with
ratcheted rip seal, bar top caps, and a variety of other cap
applications are all within the capabilities of Accutek AccuSnap
Capper. Each machine is designed to accommodate a wide
variety of container types. A variety of gripper belt options is
available to stabilize different types of containers.
The Accutek AccuSnap Capper features an Accutek centrifugal
bowl or cap elevator orientated arm. With an automated
delivery device, the Accutek AccuSnap Capper can reach speeds
up to 120 CPM.
SnapCap007
Dimensions -
Height: 94” (238 cm)
Width: 24” (61 cm)
Length: 32” (91.4 cm)
Weight -
800 lbs. (363 kg)
Speed -
Up to 120 CPM
Cap Size -
Min: 10mm / Max: 660mm
Electrical -
110V AC 20 Amp (220 available)
Air Requirements -
13. 120 PSI @ 2 CFM
Note #3 (Personnel, Business Expenses, & Financial Matters)
Personnel Requirements and Family Financial Investment
Personnel
Current Personnel:
Myself (Student Name Here): Fulltime CEO/President; no salary
for the first six months
Stephen Job: Part Time (20 hrs/week) Computer
Expert/Assistant: $10/hr
Melinda Cates: NAB Creator & Master Mixer (owns the patent
on the NAB): has $40,000 inheritance
(Volunteer) Ian Glass: Retired PepsiCo plant production line
foreman. Ian recently retired with 35 years of loyal PepsiCo
service in every position from janitor to production line
foreman, and he and his wife moved into your neighborhood.
He is tickled that you have asked him to help develop a plan to
get the NAB Company’s production line going. He said he
could help organize and sit on the planning committee as a non-
paid member until the NAB Company can hire its own
Production Line Foreman. He hinted that he retired from
PepsiCo with an annual salary of $55,000, but he says that is
just the starting salary that large companies pay their foremen
who are in an apprenticeship program. He does not think the
NAB Company will have to pay top dollar for someone who has
the willingness to join the NAB Company as a start up!
(Paid Consultant) Mary Cates, JD: Melinda’s sister who was a
senior executive with the Federal Trade Commission from 2001-
2012. She left the FTC after a significant 30 year career with
the federal government in which she lead the research and
support of numerous federal court findings against companies
that violated consumer deception and unfair practices laws. She
would enjoy serving on the initial company-planning group to
make sure her sister’s recipe is successfully shared within the
state!
14. Future Personnel:
Production Line Foreman (Note: in order to meet goals of
creating a $1 M revenue company by year two; you will need
more than one shift of employees.)
Projection Line Workforce - (see note above)
Maintenance Workforce (see note above)
Business Expenses:
- Marketing
- Paid services (professional in nature)
- Telephone/fax
- Business Insurance
- Office Supplies
- Mailings and postage
- Printing services
- Inventory purchases
Capital Expenditures:
- Additional equipment purchases to meet production goals
- Additional computer equipment
Facilities:
Need monthly estimates for the following areas:
- Building maintenance costs
- Utilities:
- Water/Sewer
- Gas
- Electricity
- Trash removal
Financial Matters:
Family Financial Investment:
15. Collected $20,000 from friends and relatives who would like to
either have their seed money returned by the end of this
calendar year at no interest or by the end of the second year of
operation with 5% interest.
(If you chose, the early payoff you must adjusted your BPF on
worksheet 8 to read 12 months and 0% interest, so that you are
not paying loan payments automatically. If you chose to pay
back over 24 months than the original instructions on the BPF
Worksheet Guidance.)
Financial Decisions:
- Employee raises
- Owner draw
- Taxes
- Investors
- Sales (local, regional, national, or global)
Note # 4 (Websites - Data & Statistics)
Here are some websites for your continued used in reviewing
statistics and data on the beverage (non-alcoholic) industry:
http://marketrealist.com/2014/11/strategic-deals-soft-drink-
industry/
http://www.statista.com/topics/1662/non-alcoholic-beverages-
and-soft-drinks-in-the-us/
http://libdatab.strayer.edu/login?url=http://search.ebscohost.co
m/login.aspx?direct=true&db=bth&AN=102826573&site=eds-
live&scope=site
http://www.bevindustry.com/articles/88194-nielsen-identifies-
consumer-health-concerns
16. http://www.bevindustry.com/articles/88184-bai-brands-disrupts-
cpg-space-with-low-calorie-allnatural-solutions
http://wwww.bevindusstry.com/artiicles/86916-zzico-to-sendd-
fan-to-sochhi-2014-wintter-olympic-games
http://www.bevindustry.com/videos?bctid=946203236001
http://www.ameribev.org/minisites/products/
http://beverageindustries.com/
Note # 5 (Market Research)
A guide to the non-alcoholic beverage industry
By Sharon Bailey • Nov 20, 2014 12:08 pm EST
Industry overview
The non-alcoholic beverage industry broadly includes soft
drinks and hot drinks. Soft drinks contain carbonated or non-
carbonated water, a sweetener, and a flavor, and hot drinks
include coffee and tea. The soft drink category dominates the
industry and includes carbonates, juice, bottled water, ready-to-
drink tea and coffee, and sports and energy drinks. Soft drinks
are sometimes referred to as liquid refreshment beverages (or
LRBs). In the US, LRBs lead food and beverage retail sales. In
this series, we’ll focus on the soft drink or LRB market.
Dominant carbonates category
The global soft drink market is led by carbonated soft drinks (or
CSDs), which had a market size of $337.8 billion in 2013. In
the same year, CSDs were followed by bottled water, with a
market size of $189.1 billion, and juice, with a market size of
$146.2 billion. In a later part of this series, we’ll discuss why
CSDs have been losing popularity, and why sales of other
beverages, including juices and ready-to-drink tea, are
increasing.
Major companies
The non-alcoholic beverage market is a highly competitive
17. industry that includes two behemoths —The Coca-Cola
Company (KO) and PepsiCo, Inc. (PEP). Collectively, these
companies hold about 70% of the US CSD market. Dr Pepper
Snapple Group, Inc. (DPS), Monster Beverage Corporation
(MNST), and Cott Corporation (COT) are some other key
players in the CSD market.
Many international markets are also dominated by Coca-Cola
and PepsiCo, but include other companies such as Groupe
Danone, Nestle SA, and Suntory Holdings Limited.
Non-alcoholic beverage manufacturers, like Coca-Cola and
PepsiCo, are part of the consumer staple sector. You can invest
in these companies through the Consumer Staples Select Sector
SPDR ETF (XLP).
Understanding consumer craving for soft drinks
By Sharon Bailey • Nov 20, 2014 12:08 pm EST
What’s a soft drink made of?
Soft drinks contain water, nutritive or non-nutritive sweeteners,
and syrups. The primary nutritive sweetener used in the US is
high-fructose corn syrup (or HFCS), a form of sugar.
Internationally, sucrose is the main nutritive sweetener used in
soft drinks. Soft drink makers also use non-nutritive or artificial
sweeteners such as aspartame, acesulfame potassium, saccharin,
cyclamate, and sucralose. So what drives a person to consume a
soft drink?
Stimulants in soft drinks
People crave soft drinks because they contain two stimulants—
sugar and caffeine. Also, the water in soft drinks hydrates. Soft
drinks contain considerable amounts of sugar, which is a form
of carbohydrate. Consumption of excess sugar releases a
hormone called dopamine, which induces pleasure in the brain.
Caffeine, another key ingredient, stimulates the nervous system,
and helps you to stay awake or restores alertness. With its
slightly bitter taste, caffeine’s also used to enhance the flavor
of carbonated soft drinks.
Ingredient facts
18. The Coca-Cola Company (KO) and PepsiCo, Inc. (PEP) are the
leading soft drink manufacturers. A 12-fluid ounce can of Coca-
Cola contains 39 grams of sugar and around 34 milligrams of
caffeine. A 12-fluid ounce can of Pepsi contains 41 grams of
sugar and 38 milligrams of caffeine. A 12-fluid ounce can of Dr
Pepper, made by Dr Pepper Snapple Group (DPS), contains 40
grams of sugar and 41 milligrams of caffeine. Energy drinks
made by leading companies such as Monster Beverage
Corporation (MNST) contain higher amounts of caffeine.
Despite the considerable demand for soft drinks across the
globe, these drinks are facing severe criticism for the ill-effects
of high sugar content.
Beverages come under the consumer staple sector.
The Consumer Staples Select Sector SPDR ETF (XLP) is one
way to invest in soft drinks companies.
Understanding the value chain of the soft drink industry
By Sharon Bailey • Nov 20, 2014 12:08 pm EST
Industry Partners
Soft drinks constitute a major part of the US food and beverage
industry. Syrup or concentrate producers and bottlers play a
vital role in the value chain of the soft drink industry.
Bottling and distribution network
Companies in the soft drink industry reach the end market in
two ways. One way is by selling finished products, made at
company-owned bottling facilities, to distributors and retailers.
Another, is by selling beverage concentrates and syrups to
authorized bottling partners, who then make the final product by
combining the concentrates with still or carbonated water,
sweeteners, and other ingredients. The bottlers then package the
product in containers and sell these beverages to distributors or
directly to retailers.
Also, both bottling partners and companies manufacture
fountain syrups and sell them to fountain retailers. Fountain
retailers include restaurants and convenience stores,
which produce beverages for immediate consumption.
19. Distribution: Third-party products
The extensive reach of The Coca-Cola Company (KO) and
PepsiCo, Inc. (PEP) allows them to produce or distribute third-
party brands. For instance, Coca-Cola is licensed to produce and
distribute certain brands of Dr Pepper Snapple Group, Inc.
(DPS) and Monster Beverage Corporation (MNST). PepsiCo
sells Lipton and Starbucks brands under partnerships with
Unilever and Starbucks, respectively.
Pricing power
Coca-Cola and PepsiCo’s wide distribution network gives them
significant pricing power. Carbonated soft drinks have similar
prices due to the intense competition in the industry. Often, soft
drink companies extend lower prices under promotional offers.
In recent times, such promotional offers have been used to boost
volumes of the carbonated soft drinks. That’s because they’re
under pressure due to rising health concerns and competition
from healthy substitutes such as tea, energy drinks, and water.
The non-alcoholic beverage industry is part of the consumer
staples sector. You can invest in this sector through the
Consumer Staples Select Sector SPDR ETF (XLP), which has
notable holdings in Coca-Cola and PepsiCo.
Key indicators of the non-alcoholic beverage industry
By Sharon Bailey • Nov 20, 2014 12:09 pm EST
Factors influencing sector growth
The non-alcoholic beverage industry falls under the consumer
staples category (XLP), which is non-cyclical in nature
compared to the consumer discretionary sector. In this part of
the series, we’ll look at the factors that impact the growth of the
non-alcoholic beverage industry.
Consumption expenditure
The Bureau of Economic Analysis (or BEA) releases the
personal income and outlays monthly reports that indicate
changes in individuals’ personal incomes, savings, and
expenditures.
US consumption spending accounts for over two-thirds of the
20. country’s gross domestic product (or GDP). The US real
personal consumption expenditure for non-durable goods
measures consumer spending on non-durable goods, such as
food and beverages, on an inflation-adjusted basis.
Disposable income and consumer confidence
Consumption expenditure depends on disposable income, which
is measured as personal income less personal current taxes.
People tend to spend more with a rise in their disposable
income. Increase in consumer confidence also increases
consumption expenditure. In the US, the Conference Board and
the University of Michigan each provide monthly reports on the
consumer confidence index, which indicates the degree of
optimism about the state of the economy as reflected in
consumer spending and saving activities.
According to market-intelligence firm Euromonitor
International, consumer-expenditure growth in emerging
markets has surpassed that in developed markets every year
since 2000, and is expected to continue doing so.
A favorable trend in consumer spending on non-durable goods
is a positive indicator for the non-alcoholic beverage industry.
It’s also good for the performance of exchange-traded funds (or
ETFs) that invest in the consumer staple sector. The Consumer
Staples Select Sector SPDR ETF (XLP) has holdings in the
major soft drink companies like The Coca-Cola Company (KO),
PepsiCo, Inc. (PEP), Dr. Pepper Snapple Group, Inc. (DPS), and
Monster Beverage Corporation (MNST).
Understanding the soft drink industry’s key markets
By Sharon Bailey • Nov 20, 2014 12:09 pm EST
Income bracket
The growing population and rise of the middle class,
particularly in emerging markets, are key growth drivers for
non-alcoholic beverage companies. Market intelligence firm
Euromonitor International estimates the middle class around the
world will include 1.5 billion households by 2020, a 25% rise
over 2012.
21. Hispanics
Many companies are innovating products and investing in
marketing campaigns that target fast-growing population
segments, such as the Hispanic community in the US. Hispanics
include people of Cuban, Mexican, Puerto Rican, Southern or
Central American descent. People of other Spanish cultures or
origins, regardless of race, are also considered Hispanic.
Nielsen estimates that by 2015, Hispanics will have $1.5 trillion
in buying power, reflecting a significant 50% rise from 2010.
Millennials
“Millennial” refers to the generation of people who were born
between 1981 and 1996. According to Nielson, there are 77
million Millennials in the US, representing 24% of the US
population. Millennials make extensive use of social media and
mobile devices, and have more product awareness.
Major companies in the soft drink industry, including The Coca-
Cola Company (KO), PepsiCo, Inc. (PEP), Dr Pepper Snapple
Group (DPS), and Monster Beverage Corporation (MNST), are
focusing their marketing strategies on this influential
demographic group.
Teens
The teen population is a core demographic for the soft drink
industry. At the 2014 Consumer Analyst Group of Europe
conference, Coca-Cola reflected on the importance of the 3.5
billion people who are in their teens and early 20s.
Soft drink companies are part of the consumer staples sector.
Investors can access this sector through the Consumer Staples
Select Sector SPDR ETF (XLP).
The role of branding and advertising in the soft drink industry
By Sharon Bailey • Nov 20, 2014 12:09 pm EST
The importance of advertising
The soft drink industry is marked by severe competition and
declining demand for carbonates. Major companies in the
industry sustain positions in this adverse scenario on the
strength of company and product branding and advertising
22. strategies.
Global brands
The industry includes companies that enjoy huge popularity all
over the globe. Brand consultancy Interbrand ranked The Coca-
Cola Company (KO) as the world’s third-most valuable brand,
with a value of $81.6 billion. Coca-Cola’s closest competitor
PepsiCo, Inc. (PEP) ranked 24th, with a brand value of $19.1
billion.
Strong individual brand portfolios
Coca-Cola and PepsiCo own impressive brands that generate
more than a billion dollars each in revenues.
· Coca-Cola: The company owns more than 500 brands, and
features 17 brands that generate more than one billion dollars
each in revenues, including Coca-Cola, Diet Coke, Powerade,
Aquarius, Bonqua, Dasani, Fanta, Schweppes, and Minute Maid.
· PepsiCo: The company’s massive brand portfolio includes 22
brands generating revenues of more than one billion dollars
each. Some of its better-known labels are Pepsi, Mountain Dew,
Gatorade, Mirinda, Aquafina, and Lipton.
Investing in brands
Soft drink makers continually invest in branding. In 2013,
Coca-Cola and PepsiCo spent $3.3 billion and $3.9 billion,
respectively, on advertising and marketing activities.
The success of Coca-Cola’s Share a Coke campaign is a perfect
example of the importance attached to marketing in this
industry. The Share a Coke campaign was first rolled out in
Australia in 2011 and then extended to more than 50 countries.
The campaign allowed fans to put their names or those of their
family and friends right on the front of Coca-Cola bottles
or cans, effectively personalizing the product.
The campaign increased the volume of the CocaCola brand’s
sales. In 2013, it generated 5% and 1% full-year volume growth
in Germany and the Northwest Europe and Nordics region,
respectively.
23. Peers in the industry such as Dr Pepper Snapple Group, Inc.
(DPS) and Monster Beverage Corporation (MNST) also focus
intently on marketing. Dr Pepper Snapple, the third-largest
company in the US soft drink market, spent $486 million on
advertising in 2013. Monster, a leading player in energy drinks,
incurred $181.8 million in advertising expenses.
Soft drinks come under the consumer staple sector. You can
access this sector through the Consumer Staples Select Sector
SPDR ETF (XLP).
Why the soft drink industry is dominated by Coke and Pepsi
By Sharon Bailey • Nov 20, 2014 12:09 pm EST
A rivalry for the ages
The Coca-Cola Company (KO) and PepsiCo, Inc. (PEP) have
dominated the non-alcoholic beverage industry for ages. Coca-
Cola is the world’s largest non-alcoholic beverage company
with more than 500 brands, including 17 brands that
generate more than a billion dollars each in revenue. PepsiCo
owns leading brands across its snack foods and beverage
portfolio, including 22 brands that generate more than a billion
dollars each in revenue. According to Beverage Digest,
the companies have a combined share of about 70% of the US
carbonated soft drink (or CSD) market.
Both companies have a wide geographic presence in more than
200 countries. The rivalry between these two
companies, popularly called the cola wars, is legendary. Both
have spent huge sums of money on mutually targeted
advertisements over decades.
Threat from new entrants
The industry does not face any major threats from new entrants
because Coca-Cola and PepsiCo each have an extensive bottling
and distribution network and huge economies of scale. For
example, Coca-Cola has about 250 bottling partners and 900
plants worldwide. It would be difficult for a new entity to make
the substantial capital investments required to compete with
these firms. Dr. Pepper Snapple Group, Inc. (DPS) has
24. seen impressive growth in the US CSD market, yet it lacks the
international presence of these giants.
Significant investments
Coca-Cola and PepsiCo spend enormous amounts of money on
innovation, advertising and marketing, and on strengthening
their distribution network. Since 2010, Coca-Cola and its
bottling partners have invested more than $50 billion in new
facilities, distribution infrastructure, equipment, and retail
customer activations. PepsiCo spent 5.9% of 2013 net revenue
on advertising and marketing.
Other companies in the non-alcoholic beverage industry include
Cott Corporation (COT) and Mondelez International Inc.
(MDLZ). You can also invest in the non-alcoholic beverage
sector through the Consumer Staples Select Sector SPDR ETF
(XLP) that has notable holdings in Coca-Cola and PepsiCo.
In the next part of this series, we’ll look at the reasons for
disappointing growth in the non-alcoholic beverage industry.
Why growth is sluggish in the non-alcoholic beverage industry
By Sharon Bailey • Nov 20, 2014 12:09 pm EST
Falling demand
The non-alcoholic beverage industry is facing challenges.
Carbonated beverage volumes are falling, primarily in
developed markets. Beverage Digest indicates a 3% fall in 2013
overall carbonated soft drink (or CSD) volumes in the US,
making it the ninth straight year in which demand has declined.
Previously, US CSD volumes declined by 1.2% and 1% in 2012
and 2011, respectively.
Key indicator—per capita consumption
The per capita CSD consumption in the US fell to about 675 8-
ounce servings per person in 2013, from 701 8-ounce servings
in 2012. Reduced consumption reflects the declining volumes
and a slower rate of US population growth.
One of the reasons for the continued decline in soft drink
volumes over the past few years is weak consumer spending,
caused by adverse macroeconomic conditions, especially in the
25. US and Europe.
Health concerns
Another major reason is the shift in consumer preferences
toward healthier products. Carbonated soft drink makers have
faced severe criticism from health officials, governments, and
communities alike for the ill-effects of high sugar content,
artificial sweeteners, and other harmful ingredients in their
products, including those in diet soda variants. Consumers are
also more conscious of the health risks associated with soft
drinks such as obesity and nutritional deficiencies, especially in
youth. As a result, they’re opting for other beverages that are
non-carbonated and have fewer calories.
The World Health Organization suggests that sugar should
account for only 5% of total energy intake per day. That’s
around 25 grams of sugar per day for an adult of normal body
mass index. Health officials feel that this percentage should be
even lower for a better quality of life. A single soda can
contains around 40 grams of sugar.
The soda tax
Mexico, which has the highest rates of obesity in the world, has
imposed a 10% tax on sugary beverages to discourage the
consumption of these drinks. There is a strong possibility
that many other countries will introduce a soda tax to
reduce sugar consumption through carbonated drinks.
In the next part of this series, we’ll discuss how soft drink
makers including The Coca-Cola Company (KO), PepsiCo, Inc.
(PEP), Dr Pepper Snapple Group, Inc. (DPS), and Monster
Beverage Corporation (MNST) are sustaining business under
such challenging conditions. Coca-Cola and PepsiCo are part of
the Consumer Staples Select Sector SPDR ETF (XLP).
In challenging times, soft drinks makers optimize and thrive
By Sharon Bailey • Nov 20, 2014 12:09 pm EST
Productivity measures
Companies in the soft drink industry are taking several
initiatives to streamline operations and cut costs. These
measures are needed to offset declining volumes in the
26. carbonated drinks category and the challenging business
conditions apparent in Europe, North America, and other key
markets.
Cost-cutting initiatives
Significant optimization measures allow soft drink companies
to make it through challenging times. The Coca-Cola Company
(KO) is streamlining its operations and restructuring its global
supply chain. In North America, the company’s optimizing its
manufacturing footprint. It recently announced plans to expand
its productivity program, through which it aims to save $1
billion by 2016, $2 billion by 2017, and $3 billion by 2019. The
company intends to reinvest these savings in brand-building
initiatives, mainly media spending.
PepsiCo, Inc. (PEP) is on track to achieve $1 billion in savings
globally in 2014. It’s cutting costs across procurement, research
and development, and other functions. The company recently
extended its $1 billion annual productivity savings target
through 2019. PepsiCo is focusing on enhancing its operations
through automation, including automated packaging, case
picking, and forklift transportation.
Another major US soft drink maker, Dr Pepper Snapple Group,
Inc. (DPS), commenced its rapid continuous improvement
program in 2011 and achieved $169 million in cash productivity
over the 2011 to 2013 period.
These measures are helping companies protect margins in
adverse market conditions. The soft drink industry also includes
Monster Beverage Corporation (MNST) and Mondelez
International, Inc. (MDLZ). You can also invest in this industry
through the Consumer Staples Select Sector SPDR ETF (XLP).
Soft drink industry now looking to still beverages to boost sales
By Sharon Bailey • Nov 20, 2014 12:09 pm EST
Social pressures forcing change
The carbonated soft drinks (or CSD) category of the soft drink
industry has witnessed declining volumes in the past few years.
Mainly, this is due to challenging conditions in developed
27. markets and increased health awareness among consumers about
the side-effects of sugar and other ingredients present in
carbonated drinks.
Soft drink makers are facing severe pressure from civil society
groups and governments to reduce the calories in soft drinks. In
the September 2014 Clinton Global Initiative, the three largest
US soda companies—The Coca-Cola Company (KO), PepsiCo,
Inc. (PEP), and the Dr Pepper Snapple Group, Inc. (DPS)—
pledged to reduce the number of sugary drink calories that
Americans consume by 20% over the next decade. To achieve
this target, the three big players plan to expand low-calorie
product portfolios, introduce smaller portion containers, and
educate consumers about healthier alternatives.
The change in consumer preferences has provided a new
opportunity for CSD manufacturers to grow into the still
beverages, or the non-carbonated category of the ready-to-drink
market.
Ready-to-drink beverages
The non-alcoholic, ready-to-drink (or NARTD) market is
projected to grow at a compounded annual growth rate of 5%
between 2014 and 2017. A large proportion of this growth will
come from emerging economies. Since 2010, NARTD retail
value has increased by $135 billion and Euromonitor
International estimates this category will grow by more than
$200 billion by 2020.
In the first half of 2014, ready-to-drink tea and coffee, sports
and energy drinks, and bottled water recorded strong growth.
Coca-Cola and PepsiCo have a strong presence across these
categories and are investing heavily for further portfolio
expansion. Other companies including Dr Pepper Snapple and
Monster Beverage Corporation (MNST) are also investing in
product development in these categories in an attempt to cater
to changing consumer tastes.
This new focus on healthier and nutritious products based on
28. changing consumer preferences and increasing health
consciousness will be a key growth driver for the non-alcoholic
beverage industry.
The Consumer Staples Select Sector SPDR ETF (XLP) provides
an attractive avenue to invest in soft drink companies.
International growth opportunities for the soft drink industry
By Sharon Bailey • Nov 20, 2014 12:09 pm EST
Beyond borders
The soft drink industry is looking for growth beyond developed
markets like the US, where the reach of carbonated soft drinks
has reached a saturation point. The Coca-Cola Company (KO)
derived 58% of its 2013 revenues internationally. PepsiCo, Inc.
(PEP), which is a leading food and beverage company,
generated 49% of its revenues outside the US.
Growth prospects
The per capita consumption in a region measures the average
number of 8-ounce servings consumed each year. For Coca-
Cola, per capita consumption in 2012 was 745 in Mexico
and 401 in the US, as the chart above shows. But per capita
consumption was comparatively low in countries such as China
and India, indicating that in many countries, soft drinks are not
consumed as widely as in the domestic market.
Companies including PepsiCo and Coca-Cola are focusing on
these growth regions to increase per capita consumption by
investing in manufacturing and distribution networks, as well as
advertising.
Positive trends
Growing populations and better standards of living in emerging
markets will drive demand for beverages. Rising health
awareness among consumers across the globe is moving them
toward better options including ready-to-drink tea, bottled
water, and low-calorie products.
The long-term prospects for growth in emerging economies are
promising. In the short-term, however, there might be certain
impediments such as lower-than-expected consumer spending
29. growth in countries such as China.
Competition outside the domestic market
Coca-Cola and PepsiCo compete with local niche players and
private labels in developing markets. For instance, in China,
Hangzhou Wahaha Group Co., Ltd., Hebei Yangyuan Zhihui
Beverage Co., Ltd., and Guangdong Jiaduobao Beverage & Food
Co., Ltd. are some of the key players in the soft drink market.
Other soft drink manufacturers such as Monster Beverage
Corporation (MNST) and Mondelez International, Inc. (MDLZ)
are also looking for international growth opportunities.
An alternative way to invest in the soft drink industry is
through the Consumer Staples Select Sector SPDR ETF (XLP).
Strategic deals in the soft drink industry
By Sharon Bailey • Nov 20, 2014 12:10 pm EST
Industry alliances
Major companies in the soft drink industry are looking for
strategic deals to expand product portfolios or to strengthen
distribution networks. These alliances will help companies
offset declining demand for carbonated soft drinks.
Recent Pepsi and Coca-Cola deals
In 2014, The Coca-Cola Company (KO) announced a long-term
partnership with Keurig Green Mountain, Inc. (GMCR). The
deal will allow people to enjoy ice-cold CocaCola beverages at
home with the soon-to-be-released Keurig Cold machine.
In August 2014, Coca-Cola announced the purchase of a 16.7%
stake in Monster Beverage Corporation (MNST). The $2.15
billion deal will help both companies leverage their respective
strengths—Coca-Cola’s bottling system and Monster Beverage’s
position as a global energy player.
Under the terms of the partnership, Coca-Cola will transfer
ownership of its energy business, including drinks such as Full
Throttle, Burn, and Relentless, to Monster Beverage. Monster
Beverage will transfer its non-energy business, including drinks
such as Hansen’s Natural Sodas, Peace Tea, Hubert’s
Lemonade, and Hansen’s Juice Products, to Coca-Cola.
30. In October 2014, PepsiCo, Inc. (PEP) and home carbonation
maker Sodastream International entered into a short-term
agreement to test a limited number of PepsiCo flavors for
SodaStream machines.
Other deal-making in the sector
In 2014, Dr Pepper Snapple Group, Inc. (DPS) acquired Davis
Beverage Group and Davis Bottling Co. to enhance its
distribution network.
In November 2014, Cott Corporation (COT) announced the $1.5
billion acquisition of DSS Group, Inc., parent company of DS
Services of America, Inc., a leading water and coffee direct-to-
consumer services provider in the US. With this acquisition,
Cott, a leading producer of private-label soft drinks, juices,
sparkling water, and energy drinks, will expand into growing
markets. Examples of growing markets include water and coffee
home-and-office delivery services, water filtration services, and
retail services.
The soft drink industry is part of the consumer staples sector.
You can invest in the soft drink industry with the Consumer
Staples Select Sector SPDR ETF (XLP), which has notable
holdings in Coca-Cola and PepsiCo.
Investing in soft drink companies with ETFs
By Sharon Bailey • Nov 20, 2014 12:10 pm EST
Packaged investing
Exchange-traded funds (or ETFs) are capital market instruments
that are designed to track an index, a commodity, or a basket of
assets. Soft drink companies come under the consumer staples
sector. There are many consumer staples sector ETFs that help
investors access stocks in the soft drink industry.
Consumer staple ETFs
Consumer staple ETFs provide exposure to companies that
produce essentials, including food, beverages, tobacco, and
household items. The above chart shows the exposure of some
of the consumer staples ETFs to beverage companies, both
alcoholic and non-alcoholic.
31. The Consumer Staples Select Sector SPDR Fund (XLP) tracks
the S&P Consumer Staples Select Sector Index. The Vanguard
Consumer Staples ETF (VDC) tracks the MSCI US Investable
Market Consumer Staples 25/50 Index. Assets under
management of the XLP and the VDC are $9.64 billion and
$2.35 billion, respectively, as of November 17, 2014. The
expense ratios for the XLP and the VDC are 0.16% and 0.14%,
respectively.
Both the XLP and the VDC have The Coca-Cola Company (KO)
and PepsiCo, Inc. (PEP) in their top ten holdings. Coca-Cola
and PepsiCo are the dominant companies in the soft drink
industry and together, hold 70% of the US carbonated soft drink
market share.
The First Trust Consumer Staples AlphaDEX Fund (FXG),
using the StrataQuant Consumer Staples Index as its benchmark,
selects stocks from the Russell 1000 Index. The FXG has $2.11
billion in assets under management and has an expense ratio of
0.70%. Monster Beverage Corporation (MNST), a leading
energy drinks maker, features in the top ten holdings of the
FXG.
Dr Pepper Snapple Group, Inc. (DPS), the third-largest soft
drink company in the US, is also a part of the XLP, the VDC,
and the FXG ETFs.
ETFs are an efficient way to gain diversified exposure to
various sectors and broad markets. To learn more, you can read
Market Realists Macro ETF analysis
(http://marketrealist.com/analysis/etf-analysis/) page.Note # 6
(History & Industry Data/Forecasting & Technology)
The non-alcoholic beverage industry plays an important role in
the U.S. economy. Our industry has a direct economic impact of
more than $169 billion, provides nearly 240,000 jobs and helps
to support hundreds of thousands more that depend, in part, on
beverage sales for their livelihoods. Beverage companies and
32. their employees, and the firms and employees indirectly
employed by the industry, provide significant tax revenues -
$13.6 billion at the state level and $22.9 billion at the federal
level. In addition, the beverage companies that produce and
distribute non-alcoholic beverages in the U.S. and those they
directly employ contribute nearly $1.6 billion to charitable
causes in communities across the nation.
The American Beverage Association (ABA) is the trade
association that represents America's non-alcoholic beverage
industry. ABA was founded in 1919 as the American Bottlers
of Carbonated Beverages, and renamed the National Soft Drink
Association in 1966. Today the ABA represents hundreds of
beverage producers, distributors, franchise companies and
support industries. Together, they bring to market hundreds of
brands, flavors and packages, including regular and diet soft
drinks, bottled water and water beverages, 100 percent juice and
juice drinks, sports drinks, energy drinks and ready-to-drink
teas.
ABA provides a neutral forum in which members convene to
discuss common issues while maintaining their tradition of
spirited competition in the American marketplace. The
Association also serves as liaison between the industry,
government and the public, and provides a unified voice in
legislative and regulatory matters. As the national voice for the
non-alcoholic refreshment beverage industry, the American
Beverage Association staff of legislative, scientific, technical,
regulatory, legal and communications experts effectively
represent members' interests.
Cognitive health appeals to all demographics
Omega-3s popular ingredient for brain health
By Jamie Popp (Feb 2015)
An estimated 5.2 million Americans suffer from Alzheimer’s
33. disease, and although the majority are older than 65, younger-
onset Alzheimer’s impacted 200,000 people last year, according
to the Alzheimer’s Association, Chicago. Furthermore, total
payments in 2014 for all individuals with Alzheimer’s disease
and other dementias were estimated at $214 billion, the
association adds.
Increasingly, attention is being put on brain health and
preventative measures such as diet and exercise in line with
consumers, particularly baby boomers, expressing concerns
about memory loss and dementia. However, ingredients that
help consumers maintain their cognitive abilities are emerging
to help all age groups to support brain development, focus and
more.
“Cognitive health applies to all ages, as newborns and children
develop cognition early, [middle-aged people] count on it for
their careers, and the older generation strives for maintenance
for as long as possible,” says Volker Berl, founder and chief
executive officer at Oceans Omega, Montvale, N.J. “Consumers
are naturally interested in maximizing intake of the right
ingredients to maintain cognition for a lifetime, supporting
memory, alertness, attention, mood and focus.”
Many ingredients are associated with cognitive health, but
omega-3 DHA has the strongest body of scientific support,
according to Berl. But vitamin D; coenzyme Q10;
phosphatidylserine; magnesium; resveratrol; pycnogenol;
vitamin E; and botanicals such as ashwagandha, ginkgo biloba,
vinpocetine, ginseng and curcumin also are considerations, he
adds.
Oceans Omega offers a range of stable omega-3 ingredients that
are water soluble and clear because of its stabilization
technology and sustainable sources of omega-3s from ingredient
partners such as DSM Nutritional Products, Kaiseraugst,
Switzerland, and Nutegrity, Irvine, Calif. OTEC 300LDHA
delivers life’sDHA from DSM, a fish free, vegetarian and
sustainable source of DHA from algae, the company says. OTEC
250CL-K delivers OmegaActiv from Nutegrity, a pure,
34. sustainable, vertically integrated source of omega-3s from
menhaden that contains a balanced level of omega-3s DHA,
EPA and DPA, according to the company.
Used in clear beverages and liquid nutritionals, OTEC
ingredients increase shelf life for finished products at ambient
temperatures, the company says. They also are compatible with
most beverage processing conditions such as hot fill, cold fill,
carbonation and pasteurization, according to the company.
Mental energy
Nutegrity closely follows the advent of brain health and the
focus of today’s consumers on products that provide a memory
boost or afternoon edge.
“The [brain health] category is interesting to us because of
aging baby boomers and challenges from cognitive function, but
millennials and their brains are hardwired to go fast, and they
are looking for some type of edge,” says Matt Phillips, chief
commercial officer at Nutegrity.
The focus is not only on memory and improved cognitive
function, but also on general brain health as well as
antioxidants and anti-inflammation specific to brain
inflammation in relation to diseases, he says.
Nutegrity, a division of Omega Protein Corp., Houston, focuses
its primary business in fishing and omega-3s, Phillips says.
From a beverage standpoint, milk companies can use omega-3s
in their formulations, but the company also produces dairy
protein as well as a line of nutraceuticals.
“Most of the work we’re doing is focused on antioxidants and
higher concentrations of omega-3s,” Phillips says. ”At one time,
most companies were doing product development and spending
time on ingredients, and now they are looking to ingredient
suppliers to … come to the table with a turnkey solution.”
Focus formulas and energy drinks openly tout the cognitive
benefits of the ingredients to appeal to a wide audience, but the
claims have to be backed by scientific evidence or beverages
risk being pulled from store shelves. As a result, many
companies dedicate considerable time substantiating new and
35. existing claims and discovering ways to use their ingredients
based on findings in clinical trials.
Oceans Omega closely follows studies related to adolescents
and brain health. For example, to determine the effects of algal
DHA supplementation on reading and behavior in healthy
school-aged children, researchers conducted the
Docosahexaenoic Acid Oxford Learning and Behavior (DOLAB)
Trial and reported that supplementation with 600 mg each day
with algal DHA for 16 weeks improved reading and behavior in
healthy school-aged children, aged 7 to 9 years old, with low
reading scores.
“We work on educating the end producer,” says Karen Todd,
director of global brand marketing at New York City-based
Kyowa Hakko U.S.A. Inc. The company’s Cognizin product
features citicoline, which increases cellular synthesis and
energy, she says. Ingredients such as Cognizin are associated
with boosting brain energy, supporting mitochondrial health,
and boosting levels of ATP, according to the company’s
research. This ingredient also is associated with increased focus
and concentration as well as memory storage and recall.
“We do clinical studies on raw materials [with healthy
subjects], and results of that help us identify what levels are
appropriate to make claims,” Todd says. “The producer and
finished product company do their pre-market test, but they’re
looking at the science behind it to support their claims from the
start.”
Kyowa Hakko is replicating clinical trials done with
millennials, pre-menopausal women and baby boomers with
more targeted groups including adolescents and athletes.
Futureceuticals, Momence, Ill., also sees the value of clinical
trials and is in the midst of several that involve its ingredients
including CoffeeBerry coffee fruit, a line of powders and
concentrates of the fruit of the coffee plant, including the bean.
“We consider demographics when we’re choosing outcomes to
focus on for our claims,” says Brad Evers, vice president of
business development. “In the case of CoffeeBerry coffee fruit
36. extract, we discovered that it has a unique capacity to increase
serum levels of brain-derived neurotropic factor (BDNF), which
is a key neuro-protein involved in cognition, mood and other
key neuro-processes. We chose to focus on cognition and mood,
given the enormous public interest in cognitive and mental
health at all age levels. Baby boomers frequently cite cognitive
health as their No. 1 concern, and younger people are motivated
to take action now to help ensure a higher quality of life as they
age.”
Major research facilities around the globe are focusing on
BDNF, and Futureceuticals has two studies that indicate that
coffee fruit stimulates the body to produce BDNF, which is
something brewed coffee does not do, according to the
company.
“Our research on our coffee fruit products is at the forefront of
new discoveries for cognitive health,” Evers says. “CoffeeBerry
meets the demand for functional beverage ingredients that are
natural and offer a value proposition.”
Focus on claims
Regulations as well as the flavor of the ingredients in their
natural state can have an impact on beverages designed to
improve memory and focus or reduce the impact of aging on the
brain.
“The biggest trend with cognitive ingredients is really attention
given to caffeine and energy drinks by the Food and Drug
Administration (FDA) and [the decision to] crack down on
amounts,” Kyowa Hakko’s Todd says. “Cognizin is a non-
stimulant without negative side effects. Energy drinks use
Cognizin [as a replacement for caffeine], and many companies
are looking to reformulate and include it at the efficacious
dose.”
But special treatment is required for cognitive ingredients to be
beverage compatible, shelf stable, soluble and taste free.
“Antioxidant beverages, focus beverages, and general brain-
health and protein beverage ingredients are bitter, and
[beverage-makers] have to figure out a way to mask [them],”
37. Nutegrity’s Phillips says. “Another big challenge is solubility,
and we’re finding ways through agglomeration or other
techniques to make them suspend in a liquid.”
Oceans Omega is able to counteract the instability and protect
them from oxidizing with new technologies, but aftertaste still
is a challenge.
“Polyunsaturated fatty acids have the propensity to oxidize
quickly and develop very repugnant odor and taste offnotes,”
Berl says. “Many [omega-3] products still have a fishy or
marine aftertaste, and their manufacturing requires an increased
complexity in processing and handling these sensitive
ingredients in the production processes.”
Certain nutrients also just don’t mix well, according to Russ
Hazen, North American premix innovation manager for
Fortitech Inc., Schenectady, N.Y.
“Certain iron compounds can have unfavorable effects on
product quality and consumer acceptance by increasing the
oxidation of polyunsaturated fatty acids,” Hazen says. “On the
other hand, inclusion of suitable amounts of antioxidants, like
vitamin E, is important to protect polyunsaturated fatty acids
from oxidation. In liquid beverages, adverse interactions
between calcium and phosphorus can be tricky and can result in
unsightly mineral precipitation products under certain
conditions”
When bitterness is a factor, masking agents can address this
issue as well, according to Kyowa Hakko’s Todd.
Futureceuticals, however, will provide its bitter CoffeeBerry
products and extracts as-is because the more natural state is
preferred by its customers, Evers says.
2016 New Product Development Outlook for beverages
Organic named top trend for new beverages in new year
By Jessica Jacobsen (Jan 2016)
This past year, Americans finally got a chance to see whether
any the 2015 references in “Back to the Future Part II” would
come true. Although the Chicago Cubs attempted to make the
38. World Series prediction a reality, they fell short. However, in
business, prognostication is less about fantasizing about the
future and more about anticipating how your products and
services can benefit, or even shape, the future. In Beverage
Industry’s New Product Development Outlook 2015 Study,
respondents helped to shed light on what they think will be the
latest product attribute trends, flavors and much more in 2016.
According to survey-takers, “organic” will be the latest trend in
the new year. With only 10 percent of respondents listing it as a
low need/interest, the remaining 90 percent indicated its
prevalence. The trend led all other product attribute interests
with 38 percent of survey-takers listing it as a latest trend. This
is vast change from last year’s study where it came in at No. 8
and only 18 percent listed it as a latest trend.
Maintaining its No. 2 status, “natural” had only 4 percent of
respondents list the product attribute interest as a low
need/interest while 34 percent named it as a latest trend.
“High protein,” last year’s No. 1 product attribute interest, fell
to No. 18 with only 6 percent indicating it as a latest trend.
Also falling down
the list was “convenience.” Last year’s No. 4 product attribute
interest, which fell to No. 9 in this year’s survey, “convenience”
only had 4 percent name it as a low need/interest; however, 66
percent listed convenience as a high need/interest. Only 12
percent named it as a latest trend.
In addition to “high protein,” “vitamin, mineral fortified” (No.
10 last year) and “probiotic/prebiotic” (No. 6 last year) fell out
of the Top 10 this year. Replacing these product attribute
interests were “country of origin labeling” (No. 6), “ethnic”
(No. 8) and “cognitive health” (No. 10).
Buzzing about flavors
When developing new products, many note that taste is king.
With flavor playing such a vital role, this attribute can garner a
lot of attention.
Different from previous years, this year’s survey asked
respondents whether they used berry flavors in 2015, which
39. flavors and how many. The same question framework was asked
for non-fruit flavors and fruit flavors. Last year, survey-takers
only were asked which flavors they used in their new products.
For berry flavors used in 2015, three-quarters of respondents
indicated that these flavors were part of their new product
releases. On average, 3.3 berry flavors were used by each
company. The most popular berry flavor was raspberry with
nearly three-quarters of survey-takers listing it. Strawberry
came in second with 55 percent naming the berry flavor, and
half of respondents used cranberry in their formulations in
2015.
Additional berry flavors listed were blueberry (42 percent),
blackberry (39 percent), berry (37 percent) and acai (21
percent). No respondents named maqui berry, while 11 percent
selected “other” for berry flavor options.
For non-fruit flavors, three-quarters of survey-takers stated that
their companies utilized these flavor options in 2015 with an
average of 4.2 non-fruit flavors used by each company.
Fifty percent of responding companies selected chocolate and
vanilla as top selections. Cinnamon and mint also were popular
non-fruit flavors in 2015 as each was used by 45 percent of
survey-takers. Rounding out the Top 5 was coffee with 42
percent.
Tea flavors also were notable choices with green tea (39
percent), tea – other (39 percent) and black tea (29 percent)
listed by survey-takers. Also receiving double-digit responses
were hibiscus (21 percent), root beer (21 percent) and cola (16
percent). Aloe, the only single-digit response, garnered a 3
percent response. Sixteen percent of respondents selected
“other” for their non-fruit flavors used in 2015.
For fruit flavors used in 2015, 86 percent of respondents noted
these were part of their formulations. An average of eight fruit
flavors were used by each company. With more than half of
respondents indicating use, lemon (56 percent), mango (56
percent) and cherry (53 percent) were the top selections. Apple
and orange rounded out the Top 5 with each having 57 percent
40. naming the fruit flavor.
Pineapple also was a popular choice in 2015, with 44 percent of
survey-takers listing the flavor. Lime, peach and pomegranate
each were named by 42 percent of respondents while 40 percent
indicated they used coconut in 2015.
Not utilized as frequently in 2015 were dragon fruit (7 percent),
papaya (7 percent) and apricot (2 percent).
When it comes to the top sellers in 2015, it looks as though fruit
and berry flavors were the most popular in 2015. According to
respondents, 20 percent indicated that raspberry was a top-
selling flavor in 2015 followed by cherry and orange, each with
16 percent. Apple and blueberry rounded out the Top 5 with 14
percent each.
In comparison to last year’s survey, chocolate was the No. 1
top-seller for 2014 with 29 percent followed by vanilla (24
percent), mango (22 percent), green tea (13 percent) and
raspberry (13 percent). This year, chocolate just cracked the
Top 20 with 9 percent of respondents naming it a top-seller in
2015. This was a six-way tie with black tea, coffee, ginger, lime
and root beer, which each were named by 9 percent of survey-
takers.
Green tea took the biggest fall as only 7 percent of respondents
named it as a top-seller in 2015.
On the upward trend was cherry. The No. 2 top-selling flavor
used in 2015, the fruit flavor barely cracked the Top 20 last
year. Tea – other flavors also were more successful in 2015 vs.
2014. With 14 percent of respondents naming it a top-seller, tea
– other made the Top 10 in 2015. However, only 4 percent of
survey-takers listed it as a top-selling flavor in 2014.
Transitioning into the new year, fruit flavors are topping the list
of the anticipated top-selling flavors for 2016. Raspberry once
again leads all with 30 percent of respondents expecting this
will be a top seller next year. Lemon and pomegranate tied for
No. 2 with each having 20 percent of survey-takers naming
these fruit flavors.
In contrast to last year’s survey, in which the Top 3 anticipated
41. top-selling flavors all were non-fruit flavors: chocolate (29
percent), coffee (22 percent) and vanilla (20 percent). This year,
the first non-fruit flavor listed was tea – other, which was in a
three-way tie with strawberry and mango for No. 4 as each had
18 percent of survey-takers name them.
Chocolate remained in the Top 10, but only 16 percent of
respondents named it as an anticipated top-seller. Vanilla
dropped six percentage points with only 14 percent of survey-
takers expecting it to be a top-seller in 2016. Coffee, however,
had larger drop as only 6 percent listed it in this year’s survey.
Both making large gains this year are blueberry and cherry.
Each was named by 7 percent last year as an anticipated top-
seller for 2015; however, that increased to 16 percent for 2016.
Creating success
Strategizing for the new calendar year, respondents to Beverage
Industry’s survey suggest that new alcohol releases will be
common for new product development in 2016.
More than half of survey-takers (56 percent) stated that their
respective companies most likely will develop new wine, beer
and spirit products. Water, juice was the next area listed with 40
percent of respondents naming these categories.
This is nearly double from last year’s survey in which wine,
beer and spirits tied for No. 4 with water, juice with each
having only 24 percent of respondents naming them.
Last year, dairy-based drinks/alternatives were listed as the
most likely area of new beverage development with 42 percent
of survey-takers naming this area. This year, it came in last with
only 15 percent indicating possible product development for the
category. Sports/energy drinks and coffee, tea also experienced
drops
in comparison with the 2014 survey. This year, 19 percent of
respondents named sports/energy drinks as an area of new
beverage development (36 percent in 2014), while 17 percent of
survey-takers listed coffee, tea (33 percent in 2014).
New product idea generation also experienced an opposite
response compared with last year’s survey. Three-quarters of
42. respondents indicated that customer demand was a source for
new products while 68 percent listed consumer trends. In
contrast, more than three-quarters of respondents named
consumer trends followed by customer demand in the 2014
survey.
However, one of the larger changes was in research and
development (R&D) departments. Last year, this idea source
was No. 3 with 62 percent of respondents listing it. For this
year’s respondents, it was less influential as only 42 percent
named it.
Other sources that topped the R&D department were in-house
through teams and meetings
(56 percent), marketing and sales (54 percent), chief executive
officer/upper management (46 percent) and consumer
research/testing (44 percent).
Natural influence
As consumer preferences continue to evolve, beverage-makers
are tasked with meeting their needs and demands.
When it comes to flavors for 2016, an average of 83 percent of
respondents note they will be using natural flavors in their
formulations while a mean of 17 percent will use artificial
flavors. Among those who are planning to use natural flavors,
half of survey-takers note that this is an increase from the
previous year. Some of the top reasons for the increase were
consumer demand, health reasons and market research.
These numbers are a slight shift from last year’s survey in
which an average of 70 percent of respondents indicated they
would use natural-flavor in 2015 with a mean of 30 percent
planning to use artificial flavors. The increase among natural
flavor users last year, however, was similar to this year as 47
percent noted it was an increase. The reasons for the increase
were slightly different with cleaner label, consumer demand,
better quality and taste, and industry trends listed by
respondents.
Natural colors also continue as a popular attribute for new
product development. An average of 80 percent of respondents
43. plan to use natural colors in their new beverages for 2016 with a
mean of 20 percent using artificial colors in their new
formulations. This is up from last year’s results as an average of
70 percent planned to use natural colors in 2015 with a mean of
30 percent using artificial colors.
In this year’s survey, 38 percent of those who indicated that
they will use natural colors in their new products noted that this
is an increase. Among the top reasons listed for the increase
were consumer demand, trend in market and health reasons.
In comparison with the 2014 survey, 43 percent of respondents
who indicated that they planned to use natural colors stated that
this was an increase. Top reasons remained similar with
consumer demand, clean label and industry trends as the reasons
named.
Sharing the work
Company size among survey-takers seems to continue to
represent entrepreneurial operations.
The mean and median of the number of employees for this
year’s survey are 501 and 23 employees, respectively. This is
slightly different from last year when survey-takers reported a
mean of 201 employees and a median of 63 employees. Going
back even further, this year’s employee mean and median still is
significantly smaller than results from the 2013 survey in which
the numbers were 1,278 and 180 employees for the mean and
median, respectively.
Similar to last year’s survey, the smaller operations resulted in
a more intimate setting for R&D teams. Nearly three-quarters of
respondents indicated that they have fewer than 10 employees
involved in the new-product-development process with a median
of four employees involved. Last year, 82 percent of
respondents noted having fewer than 10 employees working on
new product development; however, the median of four
employees being involved was consistent.
Although beverage manufacturers have dedicated teams for their
new product development, they still outsource a portion of the
process. One-third of respondents indicated that they outsource
44. a portion of the work (up from 29 percent last year).
Among those who outsource part of the process, market research
is outsourced by more than half (53 percent) followed by
prototype development (47 percent) and concept/product testing
(41 percent).
This is a notable shift from last year’s responses in which
prototype development was the No. 1 outsourced process with
62 percent naming it. It was followed by concept and product
testing (46 percent) and market research (38 percent).
Although team approach still is noted by a majority of
respondents (82 percent), it is down from last year’s survey in
which 93 percent noted this development approach.
Among those who indicated using a team approach in this year’s
survey, sales/marketing (80 percent) and upper management (78
percent) were the departments involved. Other areas noted by
respondents were production (56 percent), R&D (49 percent)
and customers (44 percent).
Although sales/marketing was ranked No. 1 by last year’s
survey-takers, R&D was No. 2 with 79 percent listing it. Upper
management was No. 3 at 62 percent.
Among respondents who noted upper management involvement,
100 percent stated that the chief executive officer was included
in that process compared with 88 percent in 2014. When noting
the roles of chief executive officers, 41 percent said
leader/decision-maker followed by oversees/advisory/guidance,
which was listed by a quarter of survey-takers. Last year,
slightly more than a quarter noted oversees/advisory/guidance
as the chief executive officer’s role. Slightly more than a
quarter of 2014 survey-takers also listed team member.
Beverage-makers also continue to get input from their supplier
partners. Slightly less than half of respondents indicated that
they involve their suppliers in the new product development
process. This is down from last year in which 58 percent noted
supplier involvement.
Among those who work with their suppliers, three-quarters of
survey-takers note involvement with samples followed by
45. provide raw materials/ingredients (71 percent) and technical
support/expertise (67 percent).
Inception/idea stage through completion and beginning stage
through completion were the two most-noted stages in which
suppliers were involved at 38 and 46 percent, respectively. Only
17 percent indicated involving suppliers after formulation
through completion, while no respondents added supplier input
in the final stages.
However, the length of time to develop a new product seems to
be moving at a faster pace as 8.2 months was the average
product development timeframe, with a quarter of respondents
noting this was faster than previous years. Last year, mean
product development timeframe from inception to launch was 11
months with less than one-third indicating that was faster than
in the past.
All of these processes might keep beverage-makers busy, but
that is not holding them back. On average, 21 new products
were developed in 2015 with approximately 12 being released in
market, an average of 55 percent of developed products were
released. Of those released, an average of nearly two were
considered successful in 2015, which equates to a 7 percent
average of successful products developed and a 13 percent
average of successful products of those released.
In comparison, a mean of 24 products were developed in 2014
with an average of nine that were released, a 38 percent average
of products released of those developed. Among those, a mean
of five products were considered successful in 2014. This
equated to a 21 percent average of successful products of those
developed and a 56 percent average of successful products
of those released.
2016 expectations
As beverage-makers usher in the new year, new product
development is on many minds.
Half of respondents indicated that they plan to launch more
products into the marketplace in 2016 compared with 2015.
Among those who expect to see an increase of new product
46. launches, the average percentage increase of product launches is
57 percent.
Last year’s respondents had slightly more than half note
intentions to launch more products in 2015 than 2014; however,
the average percentage increase only was 38 percent.
Planning remains split as half of survey-takers have a definitive
new-product-development plan; however, assessment has a
slightly higher uptick with 60 percent of respondents who have
post-launch assessments. In comparison, 60 percent had
definitive plans and 76 percent had post-launch assessments in
the 2014 survey.
One area that continues to show strong variances among survey-
takers is total cost to develop new products. With a recorded
minimum of $100 and maximum of $2 million, 41 percent of
new products fall in the $1,000-$19,000 range. The median total
cost came to $17,500. This is strong contrast to last year’s
survey in which the recorded minimum was $50 with the
maximum at $1.5 million, with the median total cost at $37,500.
When it came to R&D budgets, respondents this year also
stipulated a lower price tag as only 32 percent planned to
increase their budget compared with 44 percent last year. BI
Beverage Industry’s New Product Development survey was
conducted by BNP Media’s Market Research Division. The
online survey was conducted between Oct. 22 and Nov. 6, 2015,
and included a systematic random sample of the domestic
circulation of Beverage Industry.
Of the respondents, 34 percent process beer, 28 percent process
coffee and tea, 26 percent process juice and juice-type drinks,
22 percent process water, 22 percent process wine, 20 percent
process spirits, 16 percent process energy drinks, 12 percent
process dairy-based drinks, 12 percent process carbonated soft
drinks and 8 percent process sports drinks.
Seventy percent of respondents were from companies with less
than $10 million in annual revenue. Another 8 percent of
respondents also were from companies with revenue between
$10 million and $50 million. A total of 2 percent were from
47. companies in the mid-size range of $50 million to less than
$100 million. Ten percent were from companies with revenue
between $100 million to less than $500 million. In the $500
million to less than $1 billion range were 2 percent of
respondents. Representing the large-size range of more than $1
billion in company revenue were 8 percent of respondents.
Males accounted for 72 percent of the respondents, and the
average age equated to 44. For industry experience, 2 percent
had less than one year; 14 percent indicated one to three years;
36 percent reported four to 10 years; 22 percent said 11-20
years; 20 percent listed 21-30 years; and 6 percent had 31-40
years of experience.
Regionally, 32 percent said they currently live in the South, 24
percent indicated the Midwest, 20 percent listed the Northeast,
20 percent reported living in the Western portion of the United
States and 4 percent stated they reside in U.S. territories.
Beverage Industry launches new app
Introductory video shows how to use Bev Industry Mobile
By Jessica Jacobson (March 14, 2014)
According to statistics portal Statista Inc., an estimated 140
million Americans are smartphone users, up from 121.4 million
in 2012. The research firm anticipates this number will continue
to grow and eclipse the 200 million mark by 2017.
Although the popularity of smartphones is not breaking news, it
always leads to interesting conversations. One area that seems
to be standard with smartphone owners is the use of mobile
applications (apps). Even if you don’t have a smartphone, the
app world might be impacting you without you knowing it. Last
year, for instance, I attended a wedding in which the bride and
groom met through a dating app.
Mobilestatistics.com reports that the total app downloads for
Android devices lead all devices with 50 billion, followed
closely by Apple devices with 48 billion and Blackberry devices
at 3 billion. Windows Marketplace download statistics are not
available yet, it reports.
48. With those kinds of statistics, it’s no surprise that beverage
brands are developing their own apps in order to reach
consumers. This past fall, Seagram’s Gin, a brand of Pernod
Ricard USA, launched its new Ginsider mobile app, which
allows consumers to scan Seagram’s Peach and Pineapple
Twisted Gin bottles to reveal exclusive videos and share them
with friends through social media. And recently, as part of its
“There’s Power in Every Game” campaign centered around the
2014 FIFA World Cup, The Coca-Cola Co.’s Powerade brand
teamed up with fitness app Endomondo to invite consumers to
participate in a series of challenges for the chance to win prizes,
including tickets to the FIFA World Cup tournament in Brazil.
And now, Beverage Industry is following suit. I’m pleased to
announce that Beverage Industry has launched Bev Industry
Mobile for iOS and Android-based phones and tablets. Now, all
the content and news that you enjoy in Beverage Industry and at
bevindustry.com can be viewed on your mobile devices through
Bev Industry Mobile.
You can log on to bevindustry.com/apps to download the app
for iPhone, iPad or Android devices. For Apple users, the app is
compatible with iOS 5.1 and later, and Android owners require
version 4.0 or later. If your device has neither of these, don’t
worry; we have developed mobile.bevindustry.com, a mobile
website. This page can be saved on your device as an HTML5
app.
In order to help you navigate all of the features, Managing
Editor Stephanie Cernivec also filmed a how-to video, which
can be viewed on our BevIndustry TV portal or on our YouTube
Channel, youtube.com/beverageindustry.
And if you have more questions, visit
bevindustry.com/mobilehelp, which contains a list of frequently
asked questions as well as a mobile support contact icon that is
located on the right-hand side of the page.
I hope you enjoy Bev Industry Mobile, and please feel free to
share your feedback by sending me an email at
[email protected].
49. Happy mobile apping!
Updated 2/26/2016 1
Business Plan Financials Guide BUS599.doc
NON-ALCOHOLOIC BEVERAGE COMPANY
Business Plan Financials Worksheet Guidance
Below is guidance for data entry into cells of each of the
separate Excel worksheets of the overall Business Plan
Financials. This is the base pro-forma financial statements for
your business. Please note: Many of the cells in the Business
Plan Financials (BPF) are already prepopulated with
suggested/default values. Use the default numbers unless
otherwise indicated.
Only cells with BLUE text can be changed. The cells in black
will be filled in automatically, based on your setup assumptions,
or will be carried over from numbers you entered earlier on
other worksheets. Work in order – as every cell you complete
will carry over to all other applicable Excel worksheets (for
example, if you enter a figure in the Staff Budget, that figure
will carry over to your Income Statement and Cash Flow
Statement).
You are encouraged to work through the guide as early as
possible. (Review the Course Guide for specific due dates on
specified worksheets; as assignments are due throughout the
course.)
Worksheet #1 - Set Up and Assumptions
Line 9: the month the academic quarter starts
Line 12: enter the year the academic quarter starts
Line 15: Two (students can choose the number of product lines
to include up to 10 lines)
50. Line 18: they will sell 55% on credit
Line 21: 30 days (standard default; however, can be adjusted as
needed)
Line 43: $16,500 (estimate of net sales after six month of
weekend sales)
Line 49: 1.00% (Dodd-Frank Act of 2011 allows businesses to
receive interests on business accounts, per the agreement of the
financial institution [range 0 to 1.50%])
Worksheet #2 - Sales Projections
Each student must determine this for their business—speculate
on how your company will grow and how much you will sell.
Reflect this in/from your Operations Plan
Worksheet #3 – Inventory
Line 7: Ingredients
Line 8: Bottles/caps
Line 9: Labels
Line 10: Cartons
Repeat these four lines for each product line.
Worksheet #4 - Capital Expenditures
(Note: This applies to purchased equipment, not leased
equipment.)
Facilities section: Students are not purchasing facilities (facility
is already provided)
51. Equipment section: Capital Purchases should be additional
expenses that each student might decide to purchase. (Note –
after the first year of business)
Current vans and other equipment should be captured in Line 23
as part of “Other Assets” on the Balance Sheet, Worksheet 11.
Computer Hardware/Software Section: Capital Purchases
should be additional expenses that each student might decide to
purchase.
Current computer hardware/software should be captured as part
of “Other Assets” on the balance sheet, along with equipment
mentioned above.
Worksheet #5 - Staffing Budget
Account for every paid employee using the appropriate Lines
for the six categories of employees (Management,
Administrative/Support, Sales/Marketing,
Operations/Production, Other, Part-Time/Hourly) and when
their employment will commence in accordance with the
Operations Plan and Management Plan.
(See Note # 1 and Note #3 of the NAB Company Portfolio for
additional details)
Worksheet #6 - Marketing Budget
This is submitted with Assignment 2: Marketing Plan
Worksheet #7: Professional Services
Line 6: $2,000
Line 7: $1,500
52. Line 9: $2,000
Line 11: Mary Cates, JD $10,000 (first year only)
Worksheet #8 - Cap Investment
Equity Capital Investments:
Line 6: Melinda Cates $40,000
Line 7: Glass Bottles $3,000
Line 8: Metal Caps $300
Line 9: Cardboard Cartons $500
Line 10: NAB Ingredients $600
Line 11: Labels $840
Loans:
Line 24: Friends and Family $20,000; the loan period is 24; the
interest rate is 5% [immediate decision is needed, before
proceeding to other sections]
(Note: Early pay off within 12 months @ 0% interest could
apply; however if early payoff is not chosen 5% interest at 24
months will automatically apply.) (See Note #3)
Add projections of other funds they intend to raise
Worksheet #9 - Income Statement
Line 20: $1,000
*Note the Leased equipment in the NAB Company Portfolio.
(See Note #2)
The Income Statement is submitted with Assignment 3 Part 2:
Business Plan – Draft
Worksheet #11 - Balance Sheet
53. This will automatically populate from other completed
worksheets. (See Worksheet # 4 above)
Updated 2/26/2016
1
PlanningShop_BizPlanFin(3.1) STRAYER BUS599.xlsm
WarningW A R N I N G !IT APPEARS THAT YOU DO NOT
HAVE EXCEL'S MACRO CAPABILITY ENABLED. THESE
FINANCIAL WORKSHEETS WILL NOT FUNCTION
WITHOUT MACROS ENABLED.Excel 2010 for Windows:
To enable macros:
1. Click the "Enable Content" button in the Security Warning
that appears at the top of this page.If you do not see the
"Security Warning" along the top of this page, scroll down for
more detailed instructions, under
"Excel 2010 and Excel 2013 on Windows - Enabling
Macros"Excel 2013& 2016 for Windows:
To enable macros:
1. Click the "Enable Content" button in the Security Warning
that appears at the top of this page.If you do not see the
"Security Warning" along the top of this page, scroll down for
more detailed instructions, under
"Excel 2010 & Excel 2013 on Windows - Enabling
Macros"Excel 2011 & 2016 for Mac:
1. A pop-up window appears. Select "Enable Macros".
2. Your workbook should now be ready to use.Excel 2013 and
Excel 2016 on Windows - Enabling MacrosNote: The procedure
is exactly the same for Excel 2013 & 2016, even though the two
versions look slightly different.
1. In the upper left corner of the Excel Ribbon, press the "File"
tab.2. Select Options, in the lower left corner.3. Select Trust
Center from the Lower Left.
54. 4. Click the "Trust Center Settings…" button in the lower
right5. Select "Macros Settings" from the left side menu
6. Select the "Disable all macros except digitally signed
macros" radio button.
7. Click "OK" twice
Your Company Name
WelcomeWelcome to Business Plan Financials!Thank you for
purchasing Business Plan Financials from PlanningShop. These
worksheets will help you develop clear, compelling financial
projections for your business. If you are unfamiliar with the
business planning process, we encourage you to refer to our
book, Successful Business Plan: Secrets & Strategies, by
Rhonda Abrams, for comprehensive, step-by-step guidance. It is
available through our website, www.PlanningShop.com.
First, a few tips to get you started:
SAVING A BLANK WORKBOOK, TO ALLOW FOR
RECOVERY FROM MISTAKES
You may start directly editing this file. If you later decide to
start over and need a fresh copy of this file, find the blank
"ORIG_PlanningShop_BizPlanFin(2.8)" file in your
PlanningShop directory. Make a copy of this file (just in case
you might need to start over yet again), and then start editing
the copy.
NAVIGATING THE WORKSHEETS
You installed the Windows version of Business Plan Financials.
The Excel Ribbon now contains a "PlanningShop" tab, that
contains controls to let you navigate between worksheets. The
PlanningShop Ribbon looks slightly different in Excel 2013
and Excel 2016, but the functionality is the same. Note that the
56. Worksheets can accommodate sales projections for up to 10
major product/service lines. How many major product/service
lines do you plan to have for your business?Ten
Sure Product Consulting: Many businesses sell hundreds or
thousands of products. It would be overwhelming to create
projections for every product you sell. So if you sell many
products, think about how you can consolidate them into up to
ten product "lines," and then base your projections on these
groups of products instead of each individual product.TenMost
businesses sell at least some of their products/services on credit
(e.g., "net 30" as opposed to cash). What percentage of your
sales will be made on credit?25%
Author: NOTE: for our purposes, this line should NOT include
credit card sales, which are, effectively, cash sales because you
receive payment in a matter days, not weeks.For sales you make
on credit, what terms will you extend? In other words, how
many days will pass from the date of sale to when you expect to
be paid?30
Author: If, for instance, your terms will be "Net 30," put 30
here. You may enter Net 10, Net 15, Net 30, Net 60, Net 90, or
Net 120.PERSONNEL ASSUMPTIONSApproximately how
much do you expect to spend per year on benefits for each
SALARIED/FULL TIME employee (medical insurance,
etc.)?$5,000
Author: This number should reflect the amount you will spend
on ONE FULL-TIME employee--the worksheets will
automatically multiply this amount by the total number of
employees you expect to hire, as shown in the Staffing Budget
57. worksheet (automatically adusting the numbers for full- and
part-time employees accordingly).Approximately how much do
you expect to spend per year on benefits for each
HOURLY/PART-TIME employee (medical insurance, etc.)?$36
Author: This number should reflect the amount you will spend
on ONE PART-TIME employee--the worksheets will
automatically multiply this amount by the total number of
employees you expect to hire, as shown in the Staffing Budget
worksheet (automatically adusting the numbers for full- and
part-time employees accordingly).With health insurance and
other benefits costing more each year, your plan should account
for annual increases. How much do you estimate your benefit
costs will increase each year?5.00%If you plan to increase
wages (both salaried & hourly) on an annual basis, how much to
you plan to increase them by?3.50%Approximately what
percentage of each employee's salary or wages do you plan to
set aside for payroll taxes?15.00%
Author: If you're not sure what percentage to enter here, leave it
at the default (15%).FINANCIAL ASSUMPTIONSWhat will be
the opening balance in your bank account on the first day of
business? This will be the opening balance in your Cash Flow
Statements.$5,000
Author: In general, this number will include money you plan to
personally invest in the business. If you will be receiving loans
or investment income from others, you can account for those on
the upcoming Capital Investments worksheet instead of here.
At approximately what rate do you expect to be taxed on your
net income?25.00%
58. Author: If you're not sure what percentage to enter here, leave it
at the default (25%).
Sure Product Consulting: Many businesses sell hundreds or
thousands of products. It would be overwhelming to create
projections for every product you sell. So if you sell many
products, think about how you can consolidate them into up to
ten product "lines," and then base your projections on these
groups of products instead of each individual product.If you
will use an interest-bearing account for your banking, at what
rate will you accrue interest?1.00%
Author: If you're not sure what percentage to enter here, leave it
at the default (1.00%).
Author: NOTE: for our purposes, this line should NOT include
credit card sales, which are, effectively, cash sales because you
receive payment in a matter days, not weeks.
Author: If, for instance, your terms will be "Net 30," put 30
here. You may enter Net 10, Net 15, Net 30, Net 60, Net 90, or
Net 120.
Author: If you're not sure what percentage to enter here, leave it
at the default (15%).
Author: This number should reflect the amount you will spend
on ONE FULL-TIME employee--the worksheets will
automatically multiply this amount by the total number of
employees you expect to hire, as shown in the Staffing Budget
59. worksheet (automatically adusting the numbers for full- and
part-time employees accordingly).
Author: In general, this number will include money you plan to
personally invest in the business. If you will be receiving loans
or investment income from others, you can account for those on
the upcoming Capital Investments worksheet instead of here.
Setup & Assumptions
SalesProjSales Projections
Author: For information about this worksheet, see the chapter
"Marketing Plan & Sales Strategy" in Successful Business Plan:
Secrets &
Strategies.20172018201920202021AssumptionsJanuaryFebruary
MarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDec
emberTOTALJanuaryFebruaryMarchAprilMayJuneJulyAugustSe
ptemberOctoberNovemberDecemberTOTAL1st Quarter2nd
Quarter3rd Quarter4th QuarterTOTAL1st Quarter2nd
Quarter3rd Quarter4th QuarterTOTALProduct Line 1
Author: Change the text in this cell to reflect the name of a
major product, product line or service your firm will offer. Unit
Volume2.00%
Author: MONTHLY VOLUME GROWTH RATE
The Worksheets automatically increase the volume in each
month on this line using the rate you enter here.
You can also enter each cell's value by hand, if you prefer,
which makes sense if you need to show ups and downs in sales