Introduction

In today’s world industry, develop project strategy is one of the critical factors for success within the corporation.   In order to be effective, it is vital to highlight what project tactic to reach and what the scope statement of the venture will sustain the mission to move forward.  Every venture starts with a strategy, vision, and targets that should be related to the company’s objective (Abrams, 2014).  This paper gives information about a start-up beverage brand and its efforts to make a position in an existing market.  It will define the company’s Mission Statement and provide a rationale for its elements.  In addition, this paper will Explain the trends in the non-alcoholic beverage industry and the reasons for selecting this kind of beverage.  Furthermore, this paper will describe the best strategic position for the company and the method in which this product will reach the customer.  Next, it will illustrate the three type of risks that the company faces.  Lastly, this paper will explain the company’s SWOT analysis: Strengths, Weakness, Opportunities, and Threats.

General Information about the Company

The company is called Coco Bev and it produces coconut water.  The product is gaining attention among consumers in the domestic market.  It was considered a product that points hydration issue and claimed optimal for use in sport.  However, nowadays it is well-known for its ability to boost energy levels, which helps to remain calm and stress free. The Coco Bev wants to specialize on a product for teenagers in order to gain position in a market dominated by other three rival companies (One’s Coconut Water, Vita Coco, and Zico).  Even though the company is small at the moment, this factor will help it to be more flexible and more productive in offering a special product.  This will also allow to develop effective in communicating the right message to its customer.  The company wants to be a regionally recognized brand in 5 years and going international in 10 years and these ambitions seem to be a good challenge, which would be realized if the management engages the efforts in the right direction.

Statement of Mission

The company aims at helping people enjoy every moment of their existence and feel free of anxiety and stress.  It also cares for the customers and wants them to live their life better by enjoying a good sleep and feeling relaxed.  Its ambitious goal is to soon become a regionally recognized brand and successfully compete in the international market in future (Glatter, 2013).

Legal Issues: Limited Liability Company

Nature of Product offered: Coconut water

Quality: Natural product

Overall relationship to customers: Serving special product for teenagers to make them enjoy their adolescence and making a good move toward their future.

Management Style/ Relationship to employees: Democratic style, empowering employees to feel free to make their decisions and giving new ideas

Relationship to the rest of the industry: Finding our niche

Incorporation of new developments: Think of this delicate but beautiful phase of everyone’s life as it is adolescence

Growth/Profitability goals: To become a regionally recognized brand in 5 years and going international in 10 years.

Relationship to community – Social Responsibility goals: The Company aims to behave as a good citizen, being active in the society.

Business Location: The State of Wisconsin

Financial status: The Company is a start-up

The company is called Coco Bev and deals with production of non-alcoholic beverages. The brand name is a mix of the word “Coconut” and “Beverage”.  The company produces coconut water, which is the almost colorless liquid found within the coconut.  The product is gaining fame for its ability to minimize stress and anxiety and also for maximizing the energy level (Glatter, 2013).  It is used by sport enthusiasts, but its popularity is growing among common people as well.  People are concerned about their well-being, they do sports of all types and care about their food and beverages.  They want to consume healthy products which are natural, with no added sugar, and at the same time tasty. The coconut water meets all of these requirements.  What is more, it also helps to remain calm and stress free.  It is a natural product that addresses human body hydration issue (Glatter, 2013).

Industry Analysis

The non-alcoholic beverages industry includes liquid refreshment beverages such as bottled water, carbonated soft drinks, energy drinks, fruit beverages, ready-to-drink coffee and tea, sports beverages and value-added water.  The share of daily soft drink consumers in the U.S. for 2015 is 28% (Soft Drinks in the US, n.d. ), where the carbonated soft drinks have the lion’s share, dominated by companies such as Coca-Cola or PepsiCo.  In the most populated countries list Mexico the first and then the U.S. with respectively 434 and 358 liters (Consumption per Capita of Non-alcoholic Beverages, n.d).  It is an industry which is in steady growth and it is important to take into account that economically the U.S. actually is enjoying prosperity and growth.  Brexit may be another point in the favor of beverages industry development as it may be an opportunity for the U.S. and Great Britain to strengthen their business relations (to take into account for our 10 years goal to go international). This fact may affect positively the overall non-alcoholic drinks industry.  Relating to the coconut water in the U.S. the industry has gone through a continuous growth, with a projected 1.98 billion US dollars in generated revenue forecast for 2019 (Statistics for Coconut Water, n.d.).  Some of the top brands processing coconut water are One’s Coconut Water, Vita Coco, and Zico.

Reasons for Choosing the Coconut Water

There are many reasons for choosing the coconut water.  First, adolescence is a delicate phase in the life of everyone, recognized as a phase where there are a lot of mental, emotional and physical changes. The water will help people going through this phase with less pressure. Second, human everyday life is becoming more and more busy and stressful and the coconut water beverage consumption helps reduce this stress level.  Third, Coconut water is natural and healthy for people who care about their health. Lastly, the product addresses hydration issue, which is very common among all people all year and especially in summer (Glatter, 2013).

 

The Company’s Strategic Position

The strategic position for this firm is Market Segment. It is important to note that Market Segment can focus geographic location (Abrams, 2014). In that vein, Wisconsin being the second largest population for our targeted customer, CocoBev plans to take advantage of this factor to respond to the desired customer with a product that satisfies their need.

Wisconsin is the second U.S. state by population which undergoes a steady growth every year (Total Population, 2017).  There are three major companies in the US market and they have their lion share in the total market. This is why it is best (related to Coco Bev capacities and goals) to consider the focus strategy.  The company’s small size (at the moment) and the agility of the company, makes it the right firm for concentrating on a specific market and serving it better competitors, even in a more quality way than giants of the industry.  Therefore, the company has to find its niche and focus on that. As the state of Wisconsin has a large population, there is a big consumers pool.  Coco Bev wants to focus on the product for adolescence population.  There happen a lot of changes in this phase of life, persons change their habits, their way of thinking and their social behavior. The coconut water the company offers is the proper product to live the adolescence without anxiety, stress and accumulate more positive energy.

Distribution Channels

The product will be distributed in cans, Tetra Paks and plastic bottles of different sizes which will make it easier for the consumers to take the product with them to university, to work or on picnic with their families.  The company will distribute directly to grocery stores and sport venues. This distribution strategy will reassure a very close relation to the customer and enhance our brand. Also, the company provides the option of social media selling which let you interact with others and share and create content through online communities. Social media delivers excellent selling chances for businesses of all bulks. Social media is important to promote the name of your brand and business and convey clients about the services that they offer.

Risk Evaluation

The company faces some market risks, one of which is that the customers may not respond immediately to its products.  The management has to find the right strategy to communicate with the customer.  It is also crucial to have a strategy of social responsibility in order to become more visible and recognizable in the society.  Once the company goes international, it will definitely face new risks (Abrams, 2014).  Thus, the external environmental factors may change, another SWOT analysis should to be conducted, and the product may need modification in order to be in conform to legislation and customer desires which may be different in the overseas markets.  The company may face also the capitalization risk (Abrams, 2014).  In order to go through this kind of risk, the company is seeking for big financial supporters who are enthusiastic about our idea.  The good economic situation in the country, encourage investors to support start-ups and taking advantage of this opportunity.

SWOT Analysis

Being a start-up it, is not easy to make a position in an existing market.  On the other hand, small size of the company makes it possible to be flexible and to specialize for serving special needs of the customer and finally determine company’s niche even more accurately.  The focus of people nowadays is on their well-being; thus, they are more aware of the importance of healthy nutrition.  No wonder, they look for natural and healthy products, which satisfy their needs and desires. With the proper advertising campaign, they will be directed to Coco Bev’s product.  Yet, there are three competitors that have their strong position in the market and Coco Bev has to take into account them while building and developing its brand.  However, the desire of people to consume more and more shows that there are possibilities for other companies in the market.  With the proper strategy (the focus strategy) it would be possible to work productively and reach company’s most ambitious goals (Abrams, 2014).

The factor the company is taking advantage of, is the economic growth the U.S. is going through.  It creates good environment for investments and increase in consumption.  People work more, gain more, consume and want to feel positive and be proactive in their life.  So, it is the proper time for a start-up to enter the market and position itself in a correct place in the mind of the customers.

SWOT analysis of the Coco Bev.

Strengths

ü  Small company and more flexible

ü  Proper strategy to focus on specific markets

ü  Product specialized for a delicate and important phase of one’s life

Weaknesses

ü  Difficulty of a start-up to gain its position in an existing market

Opportunities

ü  Consumers are aware of their health

ü  Consumers have changed their habits in nutritious

ü  U.S. is going through an economic growth

Threats

ü  Competitors (Zico, Vita Coco and One’s Coconut Water

 

 

 

References

Abrams, R. (2014). Successful Business Plan, 6th Edition. [Strayer University Bookshelf]. Retrieved from https://strayer.vitalsource.com/#/books/9781933895475/

Consumption per Capita of Non-alcoholic Beverages. Retrieved from https://www.statista.com/statistics/505794/cds-per-capita-consumption-in-worlds-top-ten-population-countries/ – Consumer Goods &FMCG, Non-alcoholic beverages, Soft drinks per capita consumption

Glatter, R. (2013, September 01). The Truth Behind The Coconut Water Craze. Retrieved January 21, 2018, from https://www.forbes.com/sites/robertglatter/2012/08/31/the-truth-behind-the-coconut-water-craze/#41e28c971f8c

Soft Drinks in the US. Retrieved from https://www.statista.com/topics/1662/non-alcoholic-beverages-and-soft-drinks-in-the-us/

Statistics for Coconut Water. Retrieved from https://www.statista.com/topics/3500/coconut water/

Total Population. Retrieved from https://www.census.gov/data/tables/2017/demo/popest/nation-total.html#tables

The post Creating a Strategic Position appeared first on Custom Writing Service.