Business Name: Fruitfit Company
The name of the company has been inspired by the core objectives that the business has to the customers. As the company is committed to providing healthy drinks which will serve as an alternative to commercialized high sugar beverages on the market. The company will provide non-alcoholic beverages based on fruits, herbs, and vegetables. Fruits will, however, make up the largest part of the business raw materials. The use of quality fruits to make healthy drinks has therefore inspired the name Fruitfit as the business name.
Fruitfit Company is committed to providing healthy and achieve the highest level of satisfaction from our customers and build customer confidence in our products. At Fruitfit, we believe that what you put in your body matters a lot.
This mission statement is based on the mandate that the company has to its customers. Through the providing healthy beverages, the company will ensure that its customer’s health matters concerns are taken care of. The responsibilities of the business are inspired by the recognition of living a healthy life by controlling what we consume.
The global non-alcoholic beverage industry is estimated to be USD 967 billion. This is according to 2016 estimates done by market research studies. The industry is also expected to grow at an estimated rate of 5.7% through 2017-2025. This makes it a desirable business to venture into. In Thailand, the non-alcoholic beverage industry can be divided into the sectors of carbonated drinks, bottled water, fruit and vegetable drinks, performance drinks, energy drinks, and smoothies. The company will primarily operate in the fruit and vegetable drinks. This is especially a good time for the business as changes in the market have indicated that customers are shifting from carbonated drinks to healthy drinks (Helms & Nixon, 2010). As a result, the categories of drinks which offer health benefits to the customers are experiencing constant growth rates over time.
In the order to properly position the company effectively in the market, the company will adopt a value-based positioning strategy. The company is committed to providing healthy drinks to customers. This comes at a time when the global market is becoming more conscious of the importance of healthy living. Fruitfit Company aims to provide healthy drinks which have been produced using quality raw materials. The company sources are raw materials from the local farmers whereby they are able to get the highest quality fruits and vegetables.
As the company will be operating in an industry which has stiff competition, it will be necessary to ensure that the products of the company are brought as close to the customers as possible. As a result, the company will adopt a well-networked distribution channel which will ensure coverage of a wide geographical area. The company will have a central point of distribution where finished goods will be stored as they await shipping to retail points or direct to customers. This central point will be determined by convenience of supply to all involved outlets. The company will be distributing its products to retailers in various parts of the country. The company will employ geographical segmentation strategy in targeting potential customers. Supply will be made to those convenience stores; grocery stores or other outlets which are located in areas which have a high concentration of our customers.
Risks are part of operations of the business. A good risk management plan is crucial for the continued survival of a business. As a result, the company has to be aware of the risks that it faces in order to come up with an effective risk management plan. The following are three risks which are faced by Fruifit Company and the strategies which will be applied to mitigate the risk.
· Financial risk; as the company operates in the fast moving consumer goods sector, the company supplies will mainly be done on credit to the retailers. This brings the risk that some of the retailers may pay late on their dues or even default. This implies that the company may be faced with liquidity issues. As a result, the company will carefully evaluate the clients on which to offer credit to.
· Compliance risk: as a provider of drinks, the company will be expected to meet certain standards in the business, failure to which may imply serious consequences to the business. The business will, therefore, be required to maintain the highest standards of quality and comply with all the relevant authority through the quality control department.
· Competitive risk: the business will also face the risk that competition in the market may prevent it from achieving set goals. In order to mitigate this risk, the nosiness will adopt an aggressive advertising strategy to ensure wide coverage of the market.
· The sector of fruits and vegetable drinks is growing
· The current crop of customers is after a healthy living which will be provided by the company
· The company will provide quality drinks which will be processed by locally sourced raw materials
· The leadership of the company is experienced with knowledge and skills about the industry.
· The industry is very competitive especially for a young company
· Majority of the employees lack experience in the market
· The current market of fruit and beverage drinks is undersupplied
· There is an emerging trend among customers to prefer healthy drinks
· Presence of a large market which has been ignored by large players in the industry
· Domination of the market by large players in the market
· Stiff regulation by authorities
Clarke, A. (2016). SEO 2017: learn search engine optimization with smart internet marketing strategies. Simple Effectiveness Publishing.
Gortmaker, S. L., Swinburn, B. A., Levy, D., Carter, R., Mabry, P. L., Finegood, D. T., … & Moodie, M. L. (2011). Changing the future of obesity: science, policy, and action. The Lancet, 378(9793), 838-847.
Helms, M. M., & Nixon, J. (2010). Exploring SWOT analysis–where are we now? A review of academic research from the last decade. Journal of strategy and management, 3(3), 215-251.