Company Description and SWOT Analysis

Tropical Beats Fruit Drink Business Plan
Name: Natasha Francis
Institution: Strayer University
Course: Strategic Management
Professor: Dr. Andrea Banto
Date: October 19, 2018
 
Company Description and SWOT Analysis
Company Name
The revised NAB name is “Tropical Beats Fruit Drink,” which offers a variety of fruit juices made from fresh fruits straight from the local farms of Jamaica. The significance of “Tropical Beats Fruit Drink” is for consumers who enjoy organic fruit juices and no longer indulge in alcoholic beverages. The company will provide a selection of fruit juices ranging from carrot juice to fruit and nut juice and ensure that consumers who drink the product can get their daily supply of vitamins and antioxidants without having to experience the hangovers associated with alcoholic beverages.
The chosen name, “Tropical Beats Fruit Drink,” represents the savoriness that will be found in the topical juices. This non-alcoholic drink is to be associated with rich dietary sources of nitrates and antioxidants that will help keep the body energized.
Mission Statement
The mission statement is “Make healthy food fun! We believe in supplying great tasting, fresh juice, combined with fun, will lead to happy and healthy people!” “Tropical Beats Fruit Drink” is an array of fruit juices that comes in handy after a busy day at the office, a long workout session, or just a nice refresher during the day.
Consumers get easily bored of medicinal and herbal-flavored drinks, which are usually strongly flavored and can add calories. “Tropical Beats Fruit Drink” speaks to the average person who is occupied with many of life’s activities, but still want some vitamin and energy boost. “Tropical Beats Fruit Drink” is a healthier option when it comes to having juice with breakfast or at any point during the day instead of soda, coffee, or energy drinks.
Trends in the Industry
Currently, the fruit juice industry has recorded a period of sustained growth, with brands pumping out one innovation after another to its customers. It is a trend that shows no signs of abating (PR Newswire, 2015). The popularity that fruit juices are gaining is related to the health benefits they provide. Fruit juices are gradually becoming a preferred alternative to energy drinks and carbonated drinks.
The reason “Tropical Beats Fruit Drink” was selected is because it increasingly focuses on health and wellness as it makes better choices by manufacturing natural organic fruits. There is a rise of smart consumers who are more aware of the effects of artificial drinks and are more concerned with the sugar content of processed drinks. With the positive change in the beverage segment, “Tropical Beats Fruit Drink” shows a high likeability of capturing the consumption habits of the millennial (Wainwright et al., 2007).
Strategic Position
The strategic position of “Tropical Beats Fruit Drink” is convenience; this is because the tropical fruit beverage will be made available where other energy drinks, carbonated drinks, premixed alcoholic drinks, pre-bottled smoothies, and sweetened nut milks are sold, thus, making it a healthier alternative that can be found among unhealthy beverages. For “Tropical Beats Fruit Drink,” this is the best strategic position as the tropical fruit beverage needs to be readily available to consumers. “Tropical Beats Fruit Drink” needs to stand out from other beverages and this can only be achieved by placing it among other drinks, where it can be seen as the preferred alternative.
Distribution
The company’s distribution channels will start with local bottling plants distributing to retailers in specified regions. This will also include businesses besides retail stores such as clubs, gyms, and restaurants. This will be beneficial for the company as it will focus its product distribution to larger outlets which will result in increased sales.
Risks
There are various risks that the company may encounter. First, the company may have challenges in getting enough outlets to display the beverage. This risk can be mitigated by building a relationship with retailers and businesses and with proper marketing. The best method of guaranteeing that the company’s products are displayed is securing a contract with a local convenience store, and gradually expanding to supermarkets (larger retailers).
A second risk the company may face is, many established companies that are in the beverage segment continually pumping their products into the market; thus, the company will need to invest heavily in marketing which will be beneficial in capturing demand and building brand recognition.
The last risk the company may face is acquiring rights for bottling the tropical fruit juices and regulatory alignment with bottling plants. This risk can be mitigated by starting with a small-scale pilot bottling service, which is designed for beverage startup. Resorting to a small-scale pilot production has advantages such as low financial risk, low minimum order quantity – so the company will not have to produce a huge quantity of the tropical fruit drink without knowing whether it will be successful or not.
SWOT Analysis
Strengths
* Unique product compared to premixed alcoholic drinks and pre-bottled smoothies
* Unique design
* Recyclable
* Bold packaging
* No preservatives and no added sugars
Opportunities
* Growing market
* Social media marketing
* New flavors that are not yet in the market, e.g., (Fruit and Nut Juice).

Weaknesses
* Slightly costly
* New market entrants must compete with existing market leaders
* Regulatory changes may be costly to align with
Threats
* Regulatory Changes
* Well-known brands such as Minute Maid, Simply Orange, Del Monte

Target Market and Demographic groups
Tropical Beats Fruit Drink is a healthy fruit juice option new in the market and targets consumers who seek healthier beverage alternatives. The juices are made from fruits sourced from the local farms of Jamaica; there will be a variety of options from carrot to nut juices, which will keep the body energized and had vitamins and antioxidants. Down to Earth Farmers Market is one of the most popular, but there are other farmers markets in and around the city including neighboring boroughs and counties. Jamaica in Queens County, New York is heavily populated, and in the 2010 Demographic Profile, there were 2,230,722 people in Queens County and the estimated density per square mile of land area 20,553.6 (US Census, 2018). Tropical Beats Fruit Drink targets customers between 18-45 years, who can shop in natural food stores are physically active and has an affordable price
Market Competition
Key competitors
The market for healthy beverages has improved as more people are health conscious but remains fragmented, but there are opportunities to grow. Among the established brands in both fresh juice and healthy beverages market, there is high competition as the firms have experience and vast distribution networks, compared the new business. The established brands like Minute Maid, Simply Orange, Del Monte have a large market share in the fruit-based beverage market, while there are real fruit juice beverages that are available in different niche markets. Creating awareness will also result in the products’ growth in markets where there are fewer healthy options, especially in markets where Coca-Cola dominates. The threats of substitute products are a major concern as products are highly differentiated including those with more brand recognition. According to PR Newswire (2018), Report 201 there is a 7. 8% growth forecast in 2017-2022 in the global health beverage market in the broad categories of bottled juices segment and juices segments.
Strategy to compete against market leaders
The strategy is linked to raising awareness where there are more public display events and social media marketing since this creates a buzz, increases brand visibility and more people are willing to try out the new product. Prior research shows that people value uniqueness and prefer certain flavors over others (Wansink, 2017). Since the product is low priced, it will be affordable to diverse people, but there will be an emphasis on quality of the drink, and this shows a commitment towards meeting the customer needs while maintaining high standards (Kim & House, 2014). If more potential customers can identify with the drink, then this will help in marketing the product. If the strategy is effective, it will help attract more customers and build brand loyalty.
Differentiation from yourself from the competition using information
Tropical Beats Fruit Drink offers a differentiated product and service with different flavors and tastes and the message behind the juice is that it is an affordable, healthier option where healthy food is made fun there will be an emphasis on innovative needs and responding to customer needs to grow. Furthermore, the packaging highlights, that healthy does not mean boring and unappealing. Tropical Beats Fruit Drink promises to be responsive to changing tastes and preferences, but will not compromise the quality of the product. The fruit juices have been marketed as viable options in case of those spending too much time office, a long workout session, or just a nice refresher during the day. Furthermore, based on customers’ tastes and preferences, new flavors will be tried and adopted if accepted by the customers.
Company Message
The marketing message
There is a promise to use fresh fruits and maintain top quality to ensure the fresh juice meets the customer's needs. For the health-conscious consumers, the contents of their foods and beverages influence their purchasing behavior, and the advertising, marketing, and promotion will emphasize that the taste is good, and drink is healthy, and they will connect the messaging with healthy beverage options. One of the challenges with ensuring that fruit drinks are healthy is hidden and added sugar content that increases calories but is not nutritious (Bardzik, Ishdorj & Jang, 2016).
5 F’s specifically for your company and product
The 5 F’s are Functions, Finances, Freedom, Feelings, and Future