|Topic||Yummy Cup Part|
This assignment consists of two sections: the Word document and your business plan financials. Note: You must submit both sections as separate files for the completion of this assignment. Use the NAB Company Portfolio (see Required Course Files in Week 1). Write a 4-8-page paper in which you provide the following information below. Operations Plan (1–2 pages) Note: Remember to assign a dollar amount to each operational cost you find, as you will need these figures for your income statement and cash flow in Week 8. Create an operations plan for your NAB company using the template in the text as a guide (p. 214 | Operations Plan Preparation Form). Extract appropriate information from the NAB Company Portfolio, where applicable. Other required items in the template should be filled in using your personal preferences. Note: Most of the research pertaining to the hints provided here can be found in the NAB company portfolio. Hints: Consider whether you will rent or buy your facilities or outsource production to an existing company. Hints: One of your biggest expenses as a startup non-alcoholic beverage company will be transitioning from a small-batch prototype of your beverage to production on a large scale. Research the equipment you will need (vats, refrigerators, burners, ovens, bottling equipment, and so on), whether you will rent or buy, how you will maintain and clean the equipment, and so forth. Consider how you will ensure quality control. What capacity do you intend to reach? Hints: Deliberate your inventory control. Where do your supplies come from and what is your turnaround time to produce your beverage once you have received an order? Hints: Consider your distribution method. Refer back to your notes for the SWOT analysis assignment in Week 2 of the class. Hints: How will you stay abreast of new developments in your industry? What new products do you have in development now, in addition to your flagship product? Describe your research and development activities and explain how they will contribute to the company. Technology Plan (1–2 pages) 3. Create a technology plan for your NAB company using the template in the text as a guide (p. 227 | Technology Plan Preparation Form). Extract appropriate information from the NAB Company Portfolio, where applicable. Other required items in the template should be filled in using your personal preferences. Hints: Consider the type of technology your company will use to conduct the following activities: managing personnel; taking, fulfilling, and tracking orders; managing inventory; communicating with customers and providing customer service; and producing your beverage. Management and Organization (1–2 pages) Create a management plan for your NAB company using the template in the text as a guide (p. 248 | Management Plan Preparation Form). Extract appropriate information from the NAB Company Portfolio, where applicable. Other required items in the template should be filled in using your personal preferences. Using the flow charts on page 242 as a guide, outline your company’s management hierarchy. Note: Charts or diagrams must be imported/included in the MS Word document. Create an ethics and social responsibility plan (1-2 pages) Describe the ways in which your company is committed to being a good corporate citizen. Hints: Consider the following areas: Creating jobs Following the laws of every jurisdiction in which your company operates Fair and honest treatment of employees Non-discrimination of employees and increasing diversity of your work force Hints: If your company is designed as a social venture—in which you have a primary purpose of achieving a social or environmental goal—describe what that goal is and what aspects of your company are designed to reach that goal. Provide a rationale for why you have or have not chosen this to be a social venture. 2. Discuss how your company’s activities will affect the environment and identify the steps you will take to mitigate any negative impacts. Hints: As a beverage company, consider such issues as your choice of packaging, disposal of bottles/packages by consumers, and your use of resources, such as water in areas where water may be scarce. 3. Determine any health issues/claims related to the product you are making, whether negative or positive. Suggest the strategy your company will use to mitigate any negative issues and to ensure any positive claims are true. Section 2: Business Plan Financials (MS Excel worksheets bundled with course textbook) For year one, submit the entire completed “Business Plan Financials” Excel document based on feedback from week 7 discussion and information from your business plan. Format your assignment according to these formatting requirements: Cite the resources you have used to complete this exercise. Note: There is no minimum requirement for the number of resources used in the exercise. The paper must be typed, double-spaced, using Times New Roman font (size 12), with 1-inch margins on all sides; references must follow APA format. Check with your professor for any additional instructions. Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required page length. The specific course learning outcome associated with this assignment is: Create operations, technology, and management plans for a company.
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 37,207people. In turn, the number of target audience is about 6,800persons. 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 mayfocus 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.