Create your revised NAB company name and explain its significance.
Smooth Delight is a company under NAB that has offerings such as refrigerated drinks, mile milk shakes as well as smoothies. These offerings are made of ingredients that are fresh and come from the farmers at local levels straight. There are also side offerings such as smoothie products that can be taken home and refrigerated yogurt. The name has been selected in such a way that the name provides clear indications to the consumer that the refrigerated beverage options are huge and can be consumer in different forms. A variety of flavor mix options are available to the consumers, starting from lavender to mint, whatever be the refrigerated offering that they pay for.
Develop your revised company’s Mission Statement and provide a rationale for its components.
A creative frozen food enterprise, Smooth Delight supports and encourages lifestyles that are healthy and connect with strong blends which have been created using fresh ingredients from the farm. The main mission is the improvement of diets through creation of flavored beverages which comprise of health-friendly ingredients for inclusion of vegetables, fresh fruits, milk varieties and juices. Through creation of well packed frozen beverages which are nutrition full, they reflect an avenue for ensuring that the diet consumed by an individual is nourishing and balancing.
The main aim of the business is to make use of ingredients that have been obtained from farmers at the local level so that society can be paid back. We take the company to be partner of our affiliates like the employees and community and also an environmental product. The product is a simple mixture of ingredients at local level which are blended with each other for making pleasing creations. The main struggle of the business is to become a regionally famous one, by capitalizing on individual and family interests for choice of health-friendly dessert options for beverages.
Startup would be the correct word to describe the business, since the operation has not started. The operation occurs at tri-state level with varied local farmers. In reference to remaining industry, the goal is to gain moderate rise in the tristate area so that expansion may be done in the eastern seaboard area. The major goal is to gain franchise whereby the company business models are purchased by individuals.
Describe the trends in the non-alcoholic beverage industry, especially the specific type of beverage category you have chosen. Justify at least three (3) reasons why you have chosen this type of non-alcoholic beverage.
There are basically three main reasons for the choice of smoothie industry. The reasons include health related benefits, substitution as a snack and their quick and portable nature. These smoothies can be prepared at any place with limited ingredients and time and anything could be mixed. The expected growth rate of market is 10% to higher when we consider the next five years because of their healthy and diet complementary nature (US Smoothies, 2007).
The investment in capital is also low, which means that the barriers to entry are low. However, product quality and brand awareness may be the success factors for the product (US Smoothies, 2007).
Choose one (1) strategic position from the course text (pp. 142–143) that you believe is the best strategic position for your company. Explain the approach you will use to implement this strategic position in order to distinguish your beverage from other non-alcoholic beverages.
The major objective of Smooth Delight is to be the market leader smoothie and refrigerated beverage entity in areas of Maryland and Virginia. For the achievement of this goal, there has been development of strategic positions which emphasize:
Products that have been made of ingredients grown at the local level
Special choices and options at individual level
Dietician engaged, inspired and created by chef selections in the menu
The strategic situation of Smooth Delight convenience has basis of the given factors:
Recent trends in the industry
Target Markets
Environment of the Product
Strengths
The main target of the drink is the consumer group who wants health friendly meal and drink choices. The market is thus on growth, robust and looks for creative and fast alternatives for snacks. The latest trial taken by our customers is the craze of weight loss of supplementary meal and it does help in the creation of smoothie mixture at own home at times.
A number of competitors are present in the area of DMV for the greater scale. While there is absence of competitors which avail smoothie to-go kits or options of drive through, this means that there an unfulfilled demand in the market that can be catered through this business. We have considered that the competition would come from many of the huge smoothie companies, but they will have problems in shifting from their current building mobility.
According to the sales statistics for smoothies in the US in the previous year, the number of servings amounted to be 577 million. This was reported by Mintel to Made to Order Smoothies in the US (Fitzpatrick, 2015). Besides other particulars, they are searching for cup filled with ingredients that are fresh, interactive, and can be customized as per the individuals as it also involved well-being quotient. Health concerns are the major reasons why people choose smoothies. These products are convenient and they are the cheapest source for filling in two major components of the meal, protein and fruit and grain (Fitzpatrick, 2015).
Provide an overview of your company’s distribution channels. Explain the manner in which your product will reach end users. Provide a rationale for your chosen method.
The type of distribution channel that has been adopted for Smooth Delight is B to C, which means business to consumers. The products are prepared in the stores themselves so that there is no shipping or storing activities involved. The distribution items are ice cream and to-go kits of smoothie. The products thus are directly given to consumer through online orders. The management of all related online and website management is done through the facility of product development.
Though there are many risks that our business, like any other, will face, the three major risks are product, competition and regulation risks. The risk of products comes from local supply of the materials from farmers. There is high dependency of products like honey, vegetables, milk and produce on the stability of climate and protection in the environment. There can even be effects from the climates on the extra products where they are basically grown through effects on the costs and menu that the company needs to offer. The risks of regulation are huge and in case there are unsatisfactory results in the quality, there can be huge consequences for the company.
Though there is presence of competitive risk in the area, the saturation is less in the city. The potential of market and consumers for added competition is huge.
Develop a SWOT analysis for your NAB company using the SWOT matrix worksheet in the course text (p. 153 | SWOT: Strengths / Weaknesses / Opportunities / Threats)
In the past year, the appetite of America for the organic food has been recorded the highest; with the amount of retails sales reaching almost $26.7 billion (McCarthy, 2015). Smoothies and juices constitute a major part of the beverage class (Statistics, 2015). The market value based on revenue generation was 23 billion till the time of 2013. The latest forecasts of price predict a rising trend in price to almost 12 dollars per orange box up to 2022 (Statistics, 2015). The rise in away from home purchases of smoothie in 2014 was observed to be 16%, with smoothies to the amount of 3.7 billion being consumed (Rush, 2015). The traditional staple frozen juices like grapes and oranges are losing their sales; whereas the frozen vegetable cocktail or juice sales are on the rise (Kennedy, 2015). The dollar sales of segment of drink and juice smoothies has improved from 6.4% to a whopping $827.9 million, while a decrease in unit sales has been observed (Kennedy, 2015).
References
Global Smoothies Market to Reach $9.0 Billion by 2015, According to New Report by Global Industry Analysts, Inc. (2010). Retrieved from http://www.prweb.com/releases/smoothies_market/frozen_mix_smoothie/prweb3808804.htm
Kennedy, S. (2015). Sales rise for veggie juices, juice smoothies. Dairy Foods, 116(6), 20.
McCarthy, N. (2015). The World’s largest markets for organic products. Retrieved from http://www.statista.com/chart/3681/organic-retail-sales-value-by-country/
Rush, S. (2015). Smoothies on the Rise. Restaurant Business, 80.
Statistics and facts on the juice and smoothie market in the U.S. (2015) Retrieved from http://www.statista.com/topics/1896/juice-and-smoothie-market/
US Smoothies Market: Trends and Opportunities. (2007). Retrieved from http://www.researchandmarkets.com/reports/564552/us_smoothies_market_trends_and_opportunities
