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 ...
1. 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.
2. 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 beverage industry to generate more capital.
3. Nutri-drink (which will have four different flavors of apple,
pineapple, strawberry and lemon) has been chosen because has
supplements that are nutritious, have vitamins and energy
supplements to ensure that besides replenishing energy when
one is exhausted, nutrients and vitamins will also be added to
the body. Also, the energy drinks will be able to ensure that
quick recovery is achieved by athletes after their training
sessions. The third reason is Nutri-drinkwill be able to observe
health issues.
Strategic position
The position of Steel Nutri-drink in the industry will matter so
much. Through its strategic position approach adopted, the
company intends to be at the top of its market through cost
leadership. It will provide quality beverage at lower cost.
Driving down cost is a way through which it will increase its
profitability. This will make it attain cost leadership. There will
also be increased differentiation through the delivery of
distinctive value to customers. This will make the products to
be different from those that are being provided by other
competitors.
Distribution channel
Three distribution channels will be used by the organization.
These are direct delivery, customer warehouse, and distribution
networks. Through direct delivery, products will be delivered
directly to retail stores. This will create maximum visibility
(Paksoy, Pehlivan, & Kahraman, 2012). The products will also
be taken to warehouses of customers. This distribution channel
is less expensive. Third-part distribution network will involve
taking products to stadiums, schools, and restaurants through
4. the use of third-party services together with vending operators
and distributors.
Risks
The first business risk that the organization will experience
while operating is the risk related to product safety. The
business has to comply with changing rules and regulations
related to the products. It has to ensure that its products meet
all the required standards that are different in various markets
(Seifert, Schaechter, Hershorin, & Lipshultz, 2011). There is
also risk related to international operations. The company has to
comply with undeveloped or differing, regulatory, and tax
regimes. There are also the risks of negative political or
economic developments and fluctuations in exchange rates.
Competition is very still in non-alcoholic beverage market. This
brings about risks related to competition.
SWOT
Strength
· Constant product innovation
· Satisfaction of customer’s needs and wants
· Differentiated and lowly priced products
· Broad portfolio of products
· Aggressive marketing strategies
Weakness
· Low product awareness
· Targeting a small group
5. Opportunity
· Growth in healthier beverages
· Increased demand for energy drink
· Large size of the market
Threat
· Many aggressive competitors in the market
· Economic instability in other areas
Write Marketing Plan & Sales Strategy section of your business
plan
I am designing a marketing plan of Steel Nutri-drink Non-
Alcoholic Beverage Company and in this plan I am doing its
market segmentation, assess the target market on the basis of
segmentation and then I would assess intensity of competition
in its market. Moreover I would be planning for the marketing
vehicles to be used.
Define y*our company’s target market.
Steel Nutri-drink Non-Alcoholic Beverage Company would
target all the demographics with an emphasis on the age group
between 15 to 40 years. I would be targeting college graduates,
university students, athletics and professionals who need
nonalcoholic drinks to revitalize their energy. The outlets of
brand will be located nearby colleges, universities as well as
shopping malls to capture more market share. Moreover I am
planning to cooperate or do some agreement with some
renowned universities who would be offering this drink.
Moreover I would cooperate with renowned Irish brands like
Spar or Centra that would help in capturing more customers as
most of customers are loyal to these brands and thus when they
come there we can attract those customers to use our brand too.
6. This is an effective marketing strategy to make use of some
renowned brand name of malls for raising our customer base. In
order to market our brand we would be segmenting market on
the basis of demographics as well as psychographics for
positioning brand effectively.
Analyze the types of consumers who will be drinking your
beverage in demographic terms (i.e., age, education level,
income, gender, ethnic group, etc.). Support your analysis with
actual data on the size of the demographic groups in your local
community (nearby zip codes).Outline the demographic
information for your company specified on the worksheet.
Appropriate market segmentation is very integral for correct
positioning of a product (Weinstein, 1987). Initially our firm is
targeting Ireland but in future we would expand geographically
by targeting states that are having warm weather as
consumption of drinks is higher there for quenching the thirst.
Education
Steel nutria drink will refine its marketing efforts on basis of
educational status as we are targeting students of under
graduate, graduate as well as post graduate level. One of the
major reason of choosing students as target market is that their
consumption of nonalcoholic soft drinks is higher as in groups
they socialize more and thus thy consume drinks higher.
Moreover they need more nutrients in order to have balance
diet. They don’t consume correct level of vitamins and nutrients
and in order to combat that issue we are offering a daily
recommended amount of fruits in form of drinks that will be
helpful for them to have healthy life style without hassle of
purchasing fruits and cutting them for consumption. Currently
they are consuming more alcohol so we had the opportunity to
offer them healthy solution.
7. Age and other demographics
Drink is a commodity that is being consumed by the people
belonging to any age so we are targeting people of age 15 to 40
as in this age people need more energy due to their hard work.
People of this age are students or professionals and in their
busy routine they don’t find time for themselves and thus don’t
have balanced diet. Our brand is targeting all that group.
Our target market include people belonging to middle class as
well as upper class. Moreover we are targeting densely
populated areas like in downtown Dublin.
Assess your company’s market competition. Use the factors
listed in the course text graphic (p. 123 | Assess the
Competition) to assess your company’s market competition
Some of the main competitors in Ireland of our nutria drink
include the following:
Miwadi
Bulmers Cider
TK Red Lemonade
Baileys Irish cream
All of the above brands are in operation in Ireland for the last
few years so they have their brand identity. Many people
recognize these brands and thus they have market share in fruit
juices industry. All these drinks are considered to be the
popular beverages in Ireland where we want to start our
operations. Thus when we will open our new brand then there
8. will be retaliation from the competitors in order to sustain their
market share.
Defend your strategy to successfully compete against market
leaders in your segment.
New brand can only survive if it has some solid competitive
edge over existing brands (Diamond & Pintel, 1991). Our
competitive edge over the above brands is that we will offer the
fresh beverage while most of the above competitors are offering
juices in cans that are not freshly made. Moreover once ordered
we would strive to fulfill the customer order in three minutes
which will be our competitive edge and its essential in order to
capture market share as customer don’t like to wait more. We
would strive to fasten our customer service and offer the fresh
juice to customers as nutrients of fruit get dissolved and
disappeared in few minutes so our brand competitive edge is
that we are offering healthier, fresher beverage in three minutes.
We are also offering larger variety of flavors in order to give
customers the choice to select the flavor of his/her own choice.
These strategies will be helpful to increase our market share as
most of customers of existing brands can come to us once they
come to know about fresh beverage that is being prepared so
quickly. All the above brands are stablished due to which they
can charge higher prices but our brand will initially charge
lower price in order to capture more customers.
Defend your plan to differentiate yourself from the competition
using the information detailed on the worksheet in the text (p.
131 | Market Share Distribution).
Steel Nutri-drink Non-Alcoholic Beverage will differentiate
itself from all the above competitors by effectively fulfilling
customer’s satisfaction. Our brand would strive to offer the
highest quality products at reasonable or comparatively lower
prices. Moreover our staff would offer friendly as well as
9. speedy customer service. We would be having keen interest in
customer’s satisfaction and in doing so our staff would be
spending more time in perfection of recipes. Another
differentiating feature is that we are offering different flavors
so that customers can have choice of selection of flavor that
they need. Another competitive edge of Steel Nutri-drink Non-
Alcoholic Beverage is that we would be offering high quality
beverage within three minutes of order delivery as customers
don’t want to wait for five minutes or more than that. Only
fresher juices and beverages have nutrients in them as nutrients
leave the fruits in few minutes so we would ensure provision of
fresh juices in three minutes to keep our product healthy.
Clarify your company’s message using the information provided
on the worksheet in the text (p. 160 | The Five F’s).
Currently Steel Nutri-drink Non-Alcoholic Beverage will be
having competition from different brands that are dealing in
beverages and creation of our brand will lead to retaliation from
competitors. Our company would also be having competition
from alcoholic beverages as well as coffee shops. In our starter
advertisements we would be giving more emphasis on healthier
as well as fresher aspect of our beverage. We would be having
informative advertisement that would depict how Steel Nutri-
drink Non-Alcoholic Beverage will ensure to be healthy over
other soft drinks, coffee as well as other drinks that are packed
in cans. Our brand will make use of life style as its message
execution strategy whereby a family or group of students are on
a trip and they feel thirsty and tired so having Steel Nutri-drink
Non-Alcoholic Beverage will energize them due to its nutrients.
We would also be making sue of renowned athletes who would
market our product as these renowned athletes are opinion
leader and many people follow them so this will be helpful to
capture customers.
Identify the marketing vehicles you plan to use to build your
10. company’s brand. Justify the key reasons why they will be
effective. Provide examples of other non-alcoholic beverage
companies that use these tactics effectively.
In order to promote our product I would be making use of
advertisement as well as sales promotion as my marketing tools
or vehicles. We would start advertising our product before its
launch in order to create awareness among the customers
regarding its benefits. We are also using sales promotion as our
toll according to which company will be using discounts in
starting months that would be helpful in attracting more
customers. We would be offering campaigns like buying one
and getting second one at half price in starting year so that
customers can taste and maximum people can give positive
word of mouth (Horchover, 2002). We would also be having
partnership with some renowned universities as well as malls to
attract more customers.
In order to set prices of our product we would be conducting an
in-depth investigation of prices and then we would use market
penetration a sour strategy whereby we would set our products
prices lower than that of our competitive brands in order to
attract larger customer base. We would be using blue color as a
theme to promote as well as package our products as this color
is symbol of pureness as well as freshness like water. This
selection of accurate themes is also very important component
for marketing of any beverage (Espejo, 2010). We would also
use online marketing campaigns and we would use social media
too to advertise our products.
Sources and use of funds
There are various sources that the funds to be used in the plans
of the company or rather to actualize the idea can be generated
from. Some of this sources include: Banks, equity financing,
savings and personal contribution and contribution from friends.
This sources will be able to generate the much needed amount
that will be able to ensure that the company will be able to run
11. its affairs. To clarify equity financing will involve the company
raising capitals from the general public this will be through
selling of the shares of the company. This will not only be able
to generate funds for the company; it will also make the general
public to be part of the management of the company since they
will be shareholders (Philips, 2013). The company is allowed to
sell certain number of shares though the prices of the shares is
supposed to fluctuate since they will be able to determine how
much they what and this will help them to decide how to sell the
shares so as to be able to generate sufficient funds that will
enable them to run their activities effectively.
The funds that will be collected by the company will be used for
various purposes that will serve to ensure that the company is
able to run and manage its affairs effectively. This is other
words implies that the funds pf the company will be used to
meet the cost of production. This will include pay off the salary
of employees, running the affairs of the company. The funds
will be used to ensure that the company is able to meets its
target and it does not fail to engage in its sole purpose due to
inadequate funds. This therefore implies that for the company to
continue engaging in producing its products it needs to have
sufficient funds that will ensure that the factors of productions
run smoothly. This therefore implies that the funds are the
major tools that will be used to drive the company to its
success.
Plan assumptions
There are various assumptions that will be made by the
business, these assumptions are made on the basis of the funds
available and the nature of the products that the company is
dealing with. These factors include Tax, Level of competition
and Cost of production. This will be discussed in detail.
Tax, the company has made an assumption that the operating tax
12. will remain the same or even reduce. This has the high
probability of increasing the production of the company and the
yearly turn over. The rate of taxation will be important because
it will not only be able to affect the production of the company
if it is increased it will also affect the turnover of the company.
Therefore, the company makes an assumption that rate of
taxation will remain the same.
Level of completion, the operating budget of the company is
streamlined with the level of competition in this sense it means
that if the level of competition increases then the company will
not be able to record an impressive performance. This is
because new entrants to the market may outshine them and thus
taking up their market share. The company therefore makes an
assumption that there will be no new entrant in the market.
The factors of production are not anticipated to go up and
therefore the company makes an assumption that the factors of
production remain constant. This is to the effect that if the
factors of production go up the this will imply that the funds
that the company is operating with are inadequate and thus the
company may not be able to achieve its purpose or run its
affairs effectively.
Break-even analysis
The company will need to sell 3000 crates annually so as to be
able to break even, this implies that the company should not sell
anything less than 3000 crates of non-alcoholic beverages. This
therefore implies that the company should ensure that they
increase the number of crates sold annually so as to be able to
generate sufficient income that will cater for variable and fixed
costs. If the business will be unable to sell the number of crates,
then the following is supposed to be done (Dickson, 2002).
1. Increasing the quality of their beverage that they are selling.
13. 2. Reducing variable cost by, for instance, they can find a new
supplier who will be able to supply them with the necessary
products for a cheaper price and another one who will sell the
beverages at a friendly price.
3. Reducing the fixed costs, this involve other parties and it
may include negotiations on certain factors these are: education
of rent, improved, management of bills and general costs.
Any of the above options can be able to reduce the break-even
points so the business will need to sell as many crates as before,
and they could still incur a fixed cost. This will be able to meet
the sole purpose of the break-even analysis which is to
determine the output which must be exceeded for the business to
be profitable.
References
Espejo, R. (2010). Advertising. Detroit: Greenhaven Press.
Diamond, J., & Pintel, G. (1991). Principles of marketing.
Englewood Cliffs, N.J.: Prentice Hall.
Horchover, D. (2002). Sales promotion. Oxford (UK): Capstone.
Granato, D., Branco, G. F., Nazzaro, F., Cruz, A. G., & Faria, J.
A. (2010). Functional foods
and nondairy probiotic food development: trends, concepts, and
products. Comprehensive reviews in food science and food
safety, 9(3), 292-302.
Paksoy, T., Pehlivan, N. Y., & Kahraman, C. (2012).
Organizational strategy development in
distribution channel management using fuzzy AHP and
14. hierarchical fuzzy TOPSIS. Expert Systems with Applications,
39(3), 2822-2841.
Philips, A. (2013). Business Managment. New York: New
Yorker.
Seifert, S. M., Schaechter, J. L., Hershorin, E. R., & Lipshultz,
S. E. (2011). Health effects of
energy drinks on children, adolescents, and young adults.
Pediatrics, peds-2009.
Weinstein, A. (1987). Market segmentation. Chicago, Ill.:
Probus Pub. Co.
Question 1
The Theory of Relativity is one of the most famous ideas
bantered around popular culture, but what do we really
understand about it? How does it apply to everyday life on
Earth? For your initial post, find a reference in pop culture to
the theory of relativity. Share this example and explain if your
source is a good representation of the theory's concepts. For
your reply post, explain if your classmates' example pertains
more to general relativity, or special relativity.
Question 2
We've been reading and learning about how social media trends
and how they affect our lives. Now let's brainstorm together to
explore further. How have all of the changes in social media
impacted how people treat each other, spend time with one
another, interact with each other? Is social media a way to form
new relationships, date, share ideas? What do you think about
this and why?
For your response post, choose another student's opinion and
give your take on it, using at least one example to support your