[Institution Affiliation]
The non-alcoholic beverage industry has been growing for the past few years. This is believed to have been sparked by the rising needs for safe drinks for the human body. This has elevated the growth in the fresh fruit drinks industry where the end products have little or no additives. These fresh fruit drinks are supposed to have the taste and feel of the real fruit from the farm. They are supposed to have the health benefits of the fresh fruits this industry has grown very much but not without a number of challenges.
(Deliza et al, 2005)The trends in the industry differ depending on many different issues in the place where a company is situated. Some places have a relatively low intake of fresh fruit juices due to financial situations, others have a high intake due to health benefits, others places also have increased sales due to weather conditions in the specific places. In all these different reactions in the juice industry, many people are leaning towards the fresh fruit industry. The juice industry contributes around $84 billion yearly and 30% of this comes from the fresh fruit juice companies.
The reason for the choice of the fresh fruit drinks is because many people are trying to avoid drinks that are deemed unhealthy. They are moving towards the healthy drink sector and thus an opportunity to provide the best of the available fresh fruit drink to the consumer. The other reason for the choice of a fresh fruit drink company is the growing trend in obesity that is causing a lot of stress. The use of fresh fruit is an easy way of giving access to healthy drinks to the society.
Many are times when one needs to grab something to eat and they do not have enough time. They tend to get whatever they can put their hands on and it is very beneficial if at that moment they can get a bottle of fresh fruit juice. The other reason why this company was created was the fact that there was ready market for the product. This does not mean there are no competitors but just that a quality product that the company produces will readily sell.
The strategy for the success of the company will be the use of customer bonding. The company will make efforts to work on a fresh fruit juice that will be very beneficial to the customer. This will try and get the customer’s trust on the product and it will be unlikely for them to walk away from it. There will be the use of different distribution mechanisms that will ensure that many of the potential customers and complementors get access to the product. When such a relationship is created, it will help to ensure that the product has the customers’ loyalty and thus the sale will be somehow guaranteed (Granato et al, 2010). In order to achieve the bonding, the company will work towards the promotion of investment. This will be both in and around the final product.
It is essential that the end users of the product get satisfied with it so as to build a good relationship. Thus the company will be creating quality products for the use of the consumer and also creating channels for consumers to air their views.
The company will focus on selling the fresh fruit juice in restaurants, sports venues, grocery stores and other different places. The juice will be made accessible to schools due to the high rate of beverage intake within school goers. It has always been a trend within children and even adults to drink juice after a meal or just using juice as a fast meal when there is no time to take heavy meals. In the same way that the juice will be made available in schools, it will be also availed in offices that will give access to those within the working community.
For the beginning few months, the company will have a promotional offer of getting a gift after each purchase. For example, buy a large pack and get a smaller pack for free. This will increase the rate at which people purchase the product and get to taste it too. There will also be the use of promoters and merchandisers to ensure that there is product awareness especially in public places.
One of the biggest challenges in the fresh fruit juice industry is the difference in regulations for different countries. There is a difference in what is considered a juice and countries have their regulations of the contents of a drink before it qualifies to be called a fruit drink. This may hinder the growth of a company from one country to another the company has made resolutions to find out the regulations for such a company in many different countries.
(Granato et al, 2010) The other risk faced by the company is the constant supply of the fresh fruit. This may be hampered by various reasons such as environmental changes that could turn up destroying the fruit trees. This is very risky in terms of the production capabilities of the company. The company has made its own fruit farms that are located in very conducive environments that will guarantee quality fruits. There are also different processing needs for different fruits and these needs have been laid down by the regulatory bodies of such companies. If these are not followed the company might face a law suit.
Strengths
The company’s strength is in the fact that it is involved in making a product that is in high demand. The team members of the company have different potentials. Whereas others are experienced, there are those who are innovative and creative and this is beneficial to the company. The market has competitors but the best way to outrun them is to be strategical which the company is. This product type has been growing in demand and it has a potential to continue growing in the market.
Weaknesses
This company’s main challenge is the fact that it is new in the market and that is the main weakness it has. For this reason it is very expensive to hire experienced personnel thus, most of the personnel are inexperienced. This poses as a challenge to the company but it is something that can be handled.
Opportunities
The opportunities that are available in the industry is the fact that many of the established companies no longer market their goods and this will make it easier for the new company to penetrate the market. The market for our product is growing due to lifestyle changes among many people who feel that this product has several health benefits to them.
Threats
The main threat is the fact that there are several established companies that are trusted by the consumers. They no longer do any kind of promotions and yet the consumers still use their products. This is making it harder for new products to sell but the market can be penetrated using the right innovative channels. New companies find it easy to join in the competition as long as they fulfils the required standards for production and this may lead to an influx in the sector.
References
Deliza, R., Rosenthal, A., Abadio, F. B. D., Silva, C. H., & Castillo, C. (2005). Application of high pressure technology in the fruit juice processing: benefits perceived by consumers. Journal of Food Engineering, 67(1), 241-246.
Granato, D., Branco, G. F., Nazzaro, F., Cruz, A. G., & Faria, J. A. (2010). Functional foods and nondairy probiotic food development: trends, concepts, and products. Comprehensive reviews in food science and food safety, 9(3), 292-302.
