eek’s discussion, please respond to the following:
- Describe how your organization’s mission statement and values are implemented in the marketing, operations, technology, management, and social responsibility sections of your business plan.
Notes:
- State your company’s mission statement in quotation marks.
- Outline your company’s values.
- Explain how the mission and values are reflected in what you do at your NAB business in each of these areas: marketing, technology, management, and social responsibility.
- Read this article to learn more about the importance of having a mission-driven company.
Yummy cup 1
Yummy cup 4
Yummy Cup and SWOT Analysis
Latesha Habersham
Strayer University
BUS 599
Dr. Andrea Banto and Dr. Cynthia Parmenter
January 27, 2020
Yummy Cup
Company Description
My non-alcoholic beverage (NAB) company’s name is Yummy Cup. The perfect name significant because it represents the features of drinks produced. Particularly, it would inferred that it would specialize in different natural drinks without unhealthy components. Through sustainable processes with minimal negative impact on the environment. Around this time of year, they are a lot of resolution for getting fit and healthy. Weight lose are struggle for many, so why not create a delicious drink that can be enjoyed daily. Thus, the enterprise will be organic used in its products, business processes and initiatives.
For any company, it is important to develop a mission statement as it represents its nature, benefits and key goals. A good mission statement should answer four essential questions regarding the business and its products: what it produces, how it produces, for whom and with what values. (Hull, 2013). Considering the above statement, the mission statement for Yummy Cup will the following, “We produce sustainable and healthy drinks for customers who value their health and the environment. We promise that our business is green and sustainable on each stage of production”. The given mission statement stresses two key benefits of the company and its products. Specifically, the products are useful for health, and the enterprise is responsible for the environment in terms of production processes.
When considering the non-alcoholic beverage industry globally, several main trends can be distinguished. To begin with, the industry is experiencing gradual and continuous growth. As for 2020, the projected annual growth rate is about 4.7% (Mordor Intelligence, 2020). The largest market for these drinks is Europe, while Asia Pacific is the one that demonstrates the highest growth rate. This region has positive prospects for the future because demand for non-alcoholic drinks is rising rapidly due to the increase of population and incomes especially with regard to the middle class consumers. The second key trend of the industry is the growth of online sales of drinks. In 2018, the growth rate was 7.84% (Mordor Intelligence, 2020). It is also necessary to highlight that the largest competitors in the global market are PepsiCo Inc., the Coca-Cola Company, Danone S.A., and Nestlé S.A. (Mordor Intelligence, 2020). They produce both carbonated drinks and non-carbonated drinks that are the two major types of beverages in the non-alcoholic beverage industry.
Yummy Cup will produce mostly non-carbonated beverages such as juices and teas. When considering the market for these particular drinks, one can claim that it has positive prospects for the nearest years because globally, people are becoming more concerned about their health and prefer healthy drinks to carbonated ones with sugar (Mordor Intelligence, 2020). The current trend is that customers demonstrate an increased focus on wellness and health benefits of drinks. Consequently, soda consumption is declining gradually, while customers, especially millennials, prefer healthy non-carbonated drinks (Colbert, 2019). Consumers also like drinks of different colors and flavors, as well as those with healthy plant ingredients (Chichery, 2018). In addition, they pay more attention to premium drinks made of exotic and natural ingredients (Colbert, 2019). Therefore, it is advisable for Yummy Cup to focus on the contemporary trends and offer consumers a wide choice of healthy non-carbonated drinks with various ingredients and flavors.
The best strategic position for the company will be differentiation because it will help to promote premium and natural products with prices that are not very low. In order to implement this strategic position, the best approach is a marketing campaign that will stress benefits of the drinks especially the ones its competitors do not offer. In particular, it is important to place an emphasis on natural and healthy ingredients used to produce beverages as well as exotic ingredients and flavors. This strategy will help to distinguish beverages of Yummy Cup from other non-alcoholic drinks produced by rivals.
As for the company’s distribution channels, they will include mostly large retail chains such as supermarkets as they are located everywhere and can reach many potential customers. In addition, the business will focus on online retail channel, because the popularity of buying foods and drinks vs. the Internet is growing. Online distribution channels will be especially important to target millennials who focus on healthy lives and buy products online as healthy goods are not always available in supermarkets. The company will sell drinks directly to retail chains and large online stores in order to shorten their way to customers and minimize costs.
Our business can potentially face several key risks. The first one is regulatory because production of natural organic products requires specific certification. There are also market risks that are mention above, there are many beverage companies, including giants like PepsiCo and Coca-Cola Company that have large market shares, a lot of loyal customers and expensive marketing campaigns to target almost everyone. Thus, it may be hard to compete with them. Finally, Yummy Cup may experience economic risks, as the drinks are natural and, therefore, have quite high prices. If consumers’ incomes decline, demands will become a threat.
SWOT Analysis of Yummy Cup
Strengths
· The company specializes in healthy drinks, and this focus is positive because the market for healthy and non-carbonated drinks is growing.
· The business focuses on organic and healthy drinks and uses homemade and exotic ingredients of top quality.
· The niche market includes different types of healthy drinks, and it can target many potential customers all over the world. There is a wide choice of drinks by their types, bottle volumes and flavors.
· The company will hire managers, engineers and other team members who have previous experience in the food and beverage industry. Therefore, they will bring their expertise and knowledge to the business.
· Yummy Cup concentrates efforts on sustainability and responsible business processes, which is helpful to attract customers and increase their loyalty.
Weaknesses
· The company is new, and its brand is not familiar for most customers. Therefore, it will be hard to compete with top contenders, as well as with older companies that are popular by consumers.
· As we plan to produce natural and healthy drinks with organic ingredients, the prices will be relatively high especially in comparison with popular drinks produced by large market players.
· We lack enough management and marketing experience to develop and promote products to make them competitive. Although we will hire experienced managers, a new company may differ from older ones in terms of management.
Opportunities
· The business has growth opportunities in the global market because, currently, the market for healthy, natural and organic drinks shows more demand than supply. Demand for healthy drinks is becoming higher in comparison with carbonated ones. It is taking place due to changing tastes of young customers.
· Yummy Cup can target premium market segment by stressing that its products have natural ingredients and are beneficial for health. Larger competitors do not serve this niche properly.
· It is possible to focus more on Asia Pacific market for beverages, as it has been currently demonstrating significant growth.
Threats
· As healthy and natural ingredients will lead to high prices, it may be hard to find loyal customers, especially in emerging markets.
· It may be difficult to enter the beverage market as several huge global companies with established markets and famous brands dominate it.
· In the global market, Yummy Cup may face problems with economic fluctuations resulting in changing consumers’ incomes.
References
Chichery, S. (2018). Top five predictions for 2019 beverage trends. Retrieved from http://www.tcma-conseil.com/top-five-predictions-for-2019-beverage-trends/
Colbert, R. (2019). 5 trends transforming the beverage industry. Retrieved from https://home.kpmg/xx/en/blogs/home/posts/2019/08/five-trends-transforming-the-beverage-industry.html
Hull, P. (2013). Answer 4 questions to get a great mission statement. Retrieved from https://www.forbes.com/sites/patrickhull/2013/01/10/answer-4-questions-to-get-a-great-mission-statement/
Mordor Intelligence. (2020). Non-alcoholic beverage market – growth, trends, and forecast (2020 – 2025). Retrieved from https://www.mordorintelligence.com/industry-reports/non-alcoholic-beverage-market
YUMMY CUP 1
YUMMY CUP 6
Yummy Cup
Latesha Habersham
Strayer University
Business 599
Dr. Andrea Banto and Dr. Cynthia Parmenter
February 9, 2020
Yummy Cup
The business under consideration specializes in selling non-alcoholic drinks in a local community, where the business is located. In particular, it is an area of 25 miles around the place where the business operates. Since the non-alcoholic beverages is a highly competitive market (for example, PepsiCo and the Coca-Cola Company are the major players in this segment), it is important for a new business to find its niche on the market. The first way is to successfully differentiate a product from other competitors. The second way is to choose some local market. In this case, the business’ performance will be limited by the borders of the local community. The next step of business development will be to expand it to other areas of the country.
The product that will be proposed by the business is a non-alcoholic energy drink. For this reason, PepsiCo and the Coca-Cola Company will not be direct competitors for the organization. Also, such companies as Red Bull are not also in the area of competition for the company since the firm will present and place its product as a healthy energy drink, which is produced from fresh water and natural ingredients. This energy drink may be used by people for recovery from sport and physical exercises.
The target market of the company is young people from the local community at the age from 18 to 30 years old. These people tend to follow the latest fashion trends and be active. Also, nowadays such young people tend to lead a healthy life. They prefer sports and the different physical exercises. Therefore, the drink proposed can meet their expectations successfully, since it offers them an opportunity to refresh the stocks of minerals and vitamins in their bodies.
The target audience does not include some differentiations, according to some ethnic groups. However, the target audience includes young people with an appropriate level of education. Such people understand importance of their health, value their time, and know what vitamins are needed to recover energy. In terms of an income level, the target audience is people with moderate income. The energy drink is not designed to be expensive, however, usually people with middle income really take care of their health. For this reason, the target audience includes young people with middle income, who think about their health.
The business under consideration will be located in Savannah, Georgia. The number of total population there is 37,207 people. In turn, the number of target audience is about 6,800 persons. The median age in this community is 16 years and over. It is the most suitable option for the business. Such a population is appropriate for the business. It is a starting point to develop the business, test innovations, and prepare for entrance.
The market competition in the chosen particular niche is not as tough as in the whole non-alcoholic beverage market in general. Energy drinks have been never considered as totally healthy products. Therefore, healthy energy drinks may be perceived as a quite innovative idea in the industry. Generally, the healthy energy drinks are represented by the following products: B vitamins, kvass, coconut water, Kombucha, Acai Berry, Eleuthero and Ginseng, the Green Monster Juice Drink, Berry, Beet and Wheatgrass Smoothie, etc (Lawrence, n.d.). These energy drinks have a range of advantages. First, they promote a human’s organism and provide them with sufficient energy. Second, they achieve such objectives without a negative influence on the organism of a person, which is intrinsic to popular energy drinks such as Red Bull. Moreover, they provide a human’s organism with a required doze of vitamins and minerals.
The most famous healthy energy drinks are the following: Just Chill Beverages, Tea Riot, V8+Energy, Clean Cause Sparkling Energy Water, Celsius Naturals, Bai Bubbles Sparkling Antioxidant Infusion, MatchaBar Hustle Unsweetened, RUNA Energy Drinks, Hiball Sparkling Energy Water and Zevia Energy, etc. (Ayuda, 2019). These brands can be direct competitors in the chosen niche. Therefore, the degree of competition can be considered as quite high in the industry. Thus, the firm should clearly differentiate it from the competitors.
The first factor of differentiation will be location of the company and its distribution channels. Most of the mentioned brands are sold in large grocery stores. It will be difficult for a new company to reach such stores and compete there with the mentioned brands. Therefore, the company should turn this drawback into competitive advantage. The drink will be sold in the company’s own little stores, located in the target community. At the very beginning of the business, the drink will be sold to members of this community.
Due to the selected location and distribution channels, advertisement of the product will be made via social media (local groups in Facebook) and special exhibition panels. Such panels will be located in the firm’s own store. Also, they will be located in large malls and other public places. People will be able to consume the product and decide whether to buy it in the future. Such a marketing placement campaign is the most appropriate for the chosen community due to additional possibilities for members’ engagement.
One of the ways of differentiation is the company’s message to its potential clients. This message should be developed using the Five F’s, which include focus on goals and objectives, flavor, foresight, flexibility to change, and fun (Wong 2014). Taking into account the mentioned factors, the company’s message may be to remain healthy and active without harmful stimulators like caffeine and nicotine. It should stress that energy drinks are not always harmful. They can be even beneficial for a person’s health. A person can work and remain active while drinking the product, proposed by the firm.
Generally, the company’s main marketing message should be realized in its slogan/tagline. The slogan may sounds something like ‘remain active, be healthy, stay cool’. This slogan digests the firm’s message, mentioned in the previous passage. It emphasizes a healthy and stimulating character of the drink. Therefore, a person can receive the desired energetic impulse without any harm for their health.
The company’s message and slogan should be delivered to the target audience via the so-called marketing vehicles. These marketing vehicles may be promotion in social media, special exhibitions, online advertisement, TV commercials, direct marketing, etc. It has been already mentioned that the company will rely on social media promotion and special exhibitions. Special exhibition panels may be placed on a constant basis in certain places, for example, own store of the firm. Also, the company may participate in different trade shows on a local basis. Such trade shows create a great opportunity to promote own products and also invite potential partners and investors to the business. The company can even offer some franchise to other communities and areas. It does not require significant financial resources, but it is a great marketing vehicle as well. When planning to expand to other regions, the company should attend the same trade shows in the other places of the country.
In conclusion, the company under consideration may conquer a niche of healthy energy drinks in the segment of non-alcoholic beverages. Since the business is new and the degree of competition is quite high, the business may focus on the local community, where the own store of the firm will be placed. It can become the main distribution channel for the company. The most actively used marketing vehicle will be social media and special exhibitions. Reaching some stable level of growth and development in the local area, the company may further expand to other regions of the country. In this way, a solid basis for its sustainable business growth can be established.
References
Ayuda, T. (2019). The best energy drinks in 2019 (and which to Avoid). Retrieved from
https://www.eatthis.com/healthy-energy-drinks/
Lawrence, A. (n.d.). 8 healthy energy drinks that can give you a boost without caffeine. Retrieved from
https://www.lifehack.org/articles/lifestyle/8-healthy-energy-drinks-that-can-give-you-boost-without-caffeine.html
Wong, J. (2014). The “5 Fs” of a fantastic marketing campaign. Retrieved from
https://www.business2community.com/marketing/5-fs-fantastic-marketing-campaign-0959512