Background Information, Environmental Analysis, Goals and SWOT Analysis
Introduction to the Company
The company name is Lite Vine non-alcoholic beverage company. this name was chosen because the company requires a name that is unique and appealing so as to the company a positive image to the public and its prospective customer. The name itself will be able to market the company. Lite Vine company will be located in Brooklyn neighborhood where the population is made up of population that would consume the company’s products. The company will have a store in Brooklyn that will act as the central point for selling the products and dispatching more products to other retail and selling points.
The company’s success in the business will be driven by the company’s mission statement. The vision statement is “To be the world leading producer and provider of the softest and high quality non-alcoholic wines that gives our customers the best healthy, tasty and satisfying product without compromising the originality of their wine experience”. This statement will be the business roadmap and plan of how the company expects to achieve its business goals. The missions statement will also be regularly updated so as to adjust the future of the company with the changes in the business environment.
The company will majorly produce both white and red non-alcoholic brands of wine that will target the people of Brooklyn who doesn’t take alcoholic beverages due to their personal or health reasons. The wine brands will be developed with different flavors so as to satisfy the demands, tastes and preferences of different customers in terms of consumption of sugary and less sugary drinks. The company will sell these non-alcoholic drinks in both wholesale quantities and retail quantities in restaurants, nightclubs and lounges. These places are often characterized with many people, especially non-alcoholic drinkers who go to have fun with friends and loved ones (Beth 2016).
The non-alcoholic (NAB) beverage industry was the choice for this company following the increased rate of growth of the industry in the recent years. The NAB market has been experiencing gradual growth in the market size which is currently more than a trillion dollars. The market size is expected to accelerate the growth in future hence creating a bigger gap for entry of more startup firms. This growth can be attributed to the increasing societal awareness of the current health issues that are directly linked to consumption of alcohol (Joan 2015). This will be advantageous for the company as its products will experience an increased growth of its market.
The business environment that the company will operate in is characterized by competition, economic factors, political factors, technological factors, sociocultural factors, and legal factors. Lite Vine being a startup and a new entrant into the industry, it will face the challenge of direct competition from already established producers of non-alcoholic beverages. The major competitors in Brooklyn are Franklin park that is known for crown heights beer garden and a home for night dance parties, the west, Montana’s Trail House that have large market shares within the region.
The company also expects government intervention that will affect the company’s operations in the region. Some of the expected interventions include the tax policy whereby the company will pay tax, adherence to environmental laws, tariffs and trade restrictions and the regional labor laws. Economically, the operations of the business will be affected by the growth of the economy, exchange rates, interest rates and rates of inflation. Inflation could affect the pricing of the products, the interest rates affect the cost of capital, economy will influence the growth and expansion of the business and the exchange rates will affect the cost of exportation, supply and the prices of goods imported.
Sociocultural factors that are expected to affect the operations and demands for the company’s products include the culture of the people of Brooklyn and their level of health consciousness, the rate of population growth and age distribution of the population. With respect to technology, the company may be affected by the obsolescence of the existing technology and discovery of new technologies and research and development which can affect quality, cost and level of innovation. The legal factors that are likely to affect the demand and cost of products include product, competitive, patent and patent infringement regulations. Others are the consumer laws, employment laws, discrimination laws, health and safety laws and antitrust laws.
Primary and Secondary Target Market
The primary target of the company is the residents of Brooklyn who do not consume alcoholic drinks for either health reasons or personal reasons or even as a consequence of being a fan of non-alcoholic drinks. Other primary targets are businessmen and women that do business in Brooklyn and the working class of Brooklyn. In addition, the company will also primarily target restaurants, nightclubs and lounges operating in Brooklyn. The secondary target of the company includes travelers who stop in Brooklyn before they proceed, visitors within Brooklyn who come for various reasons and stay for a short while before moving back to their homes and alcoholics who for one reason or the other stop drinking alcoholic drinks.
In order to capture the attention of the targeted audience, the company will use the Four-Ps of marketing, the Five-Cs and the STP. Using the four Ps, the products will be designed, assorted, packaged and labelled and warranted so as to attract the customers and satisfy their different wants and needs. Prices will be favorable even to low income earners and discounts will be allowed for bulk purchase by customers. The products will be provided in the company store, restaurants and nightclubs that are convenient for most customers. The company will engage in promotional activities such as advertising through media, sales promotion and direct marketing of its products (Waterschoo & Van den Bulte, 1992).
Before selling on credit to the target customers, the company will first review the character to ascertain the reputation and credit history, capacity which involves measuring the ability of the borrower to pay for the goods on time, the capital put by the borrowers such as club owners on potential investment, collateral for securing the credit in case of default in payment and lastly, the conditions of the credit such as the principal amount and time (Dominici, 2009). In addition, the company will focus on segmentation, targeting and positioning to align the products to the correct customers. Segmentation will be used to divide buyers in homogenous groups and targeting and positioning them with the right product.
Short-Term and Long-Term Goals
The main goals that the business expects to achieve within the following year include increasing the company’s website traffic, increase profit margin by ten percent, increase the number of social media followers, reduce employee turnover and improve customer service. On the other hand, the company’s long term goals include doubling the business revenue, corporate social responsibility or community outreach, business, expansion into new opportunities, go public, develop a lasting legacy, control a larger market share, and introduce more products and services (Kotler, 2012).
The short term goals will be measured using certain metrics including employee and customer retention rate, download of social media content, the change in profit margins, website visitors and customer engagement. The long-term business goals will be measured through monitoring increase in market share, change in customer value, rates of adoption of new products, growth rate in comparison with competitors and the market.
SWOT Analysis and Need Analysis
The SWOT analysis of Lite Vine company is as follows; the strengths include fantastic marketing strategy that involves the use of e-commerce and use of direct selling and joint ventures to reach customers, wide variety of quality wine brands, good reputation and image by engaging in corporate social responsibility and lastly unique product that is totally different from the brands available in the market. Weaknesses include limited source of capital for startup, high cost structure during entry into the market, limited parking space and bad weather. Opportunities include the shift to non-alcoholic beverages that is expanding the market, advancements in technology, demand of non-alcoholic beverages in the international markets and continuous rise in market share. Threats are competition by the well-established producers, new entrants that keep entering the industry, legal changes in laws and regulations governing the industry and natural disasters (Mesly, 2017).
The company will conduct need analysis to determine how the products supplied will address the end needs of the customers (Harris, 2002). The need analysis for the products is performed as follows; The strengths include elegant product designs, good location, appealing product and marketing to the lowest levels. Weaknesses include fewer test of the products, inadequate record keeping due to the increasing number of supplies, positioning the product in one place and long manufacturing process. Opportunities include ability to monitor feedback from user, market research, gap analysis and opinion of the end user. Threats include production and supply of elegant products by competitors, existence of better products that are already selling in the market, end user opinions on the competing products and intensive market research conducted to improve the competing products.
Beth M. (2016). Non-alcoholic energy drinks that give you wings linked to drunk driving, Retrieved from: https://arstechnica.com/science/2016/09/energy-drinks-may-give-you-wings-but-also-a-dui-even-without-alcohol/ on 1/22/2018
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Joan S., (2015). Are energy drinks safe? Retrieved from: https://www.sharecare.com/health/non-alcoholic-drinking/are-energy-drinks-safe on 1/22/2018)
Kotler, P. (2012). Marketing Management. Pearson Education.
Mesly, O. (2017). Project feasibility –tools for Uncovering Points of Vulnerability. New
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