Business proposal
Executive summary
Water Idea is a new solution to some of the most common problems encountered by people while determining the best drinks to take for quenching thirst. The following business proposal outlines the main strategies and ideas put in place to come up with a product that consists of water mixed with real fruit pieces. The full implementation of the project will cost $104,000 as indicated on the budget Forty Fruits Companies.
Introduction
Water Idea is a newly created company that aims at producing drinking water flavored with fruits. Most people would require a drink that tastes different from normal water but does not introduce any health problem in the body. The research group has conducted an intensive survey to determine the effects of using this product in relation to others already in the marker. The implementation of this plan will cost $104,000.
The main aim of starting a business is to achieve certain business goals and ensure the goods and services offered achieve a high competitive advantage. Entrepreneurs today must make crucial decisions entailing business opportunities every single day. One of the challenges facing business today is that the environment is fast growing and extremely dynamic. A business strategy might work today but no longer effective tomorrow calling for business people to be diverse in the changing environment (Bangs & David, 2011). On the other hand, the business environment is global because microeconomic factors from every corner of the world have an impact on business in different regions regardless of their size. In addition, the modern environment has consumers with different values and lifestyles depending on individual tastes and preferences that affect the target market needs. These are the challenges that someone ought to think about while starting a business in order to fit in the current business environment requirements (Daft, & Marcic, 2008).
This following is a business proposal on water idea entailing the sale of water mixed with real fruit pieces. The most targeted donors are the water companies because the business entails production and sale of modified water. Water is essential in day-to-day life of an individual that makes it a basic need. People should be given the importance of water in the body because it assists in maintaining the balance of body fluids. In addition, water helps in flushing toxins from the body and maintaining body health. The main aims for introducing this new product into the UAE- Abu Dhabi market is to take care of different client needs because they might feel better drinking water mixed with real fruit pieces as it quenches thirst totally. On the other hand, this product will supplement other common drinks consumed such as sodas that have high chemical levels capable of affecting people’s health.
The product
Water mixed with real fruit juices is the proposed product. It will be processed and sold in UAE-Abu Dhabi before gaining access to international markets. With the availability of required funds, this product has the capability of achieving high sale volumes and generates a lot of profit within a very short duration. The following product will be processed and packed in containers of different sizes depending on the consumer’s requirement. In addition, the price of this product will be lower compared to other company prices. Often clients judges the quality of products in terms of meeting their desires, quality and satisfaction of the tangible products and element, assurance given and reliability of the service (Jacobs, & Chase, 2010). Water idea is an ideal drink that fulfils all these requirements hence, the best option in the market. In order to ensure total customer satisfaction, water idea products will come in different flavors as listed below:
- Green apple syrup with lime pieces
- Cinnamon flavor with apple pieces
- Coconut flavor with pineapple pieces
- Ice cubed water with strawberry pieces (straw berry flavored)
- Coconut with passion fruits
- Kiwi pieces flavor
The possible competitors include Forty Fruity and Squeezed Companies.
An understanding of the prospective client's problem, needs and wishes
Loma Linda University in California conducted a research where 20 men and women of ages between 38 and 100 years were used as a target group. The research aimed at comparing the health effects associated with frequent drinking of water and other drinks such as coffee, tea, milk or any other beverage. The study results showed that people who took enough water daily had lesser chances of contracting heart diseases. The above drinks cannot substitute water because they increase chances of a person suffering from a heart attack. It is from this research that I generated an idea of coming up with a product that will have no health effects to clients and at the same time increase the quality of plain water while serving the same purpose. An investigation about the consumers’ behaviors at UAE- Abu Dhabi indicates that most people prefer taking soft drinks such as sodas and cocktails to quench their thirst. Creating awareness of the health effects associated with these drinks leaves my product the best option for a thirsty customer.
On the other hand, most clients wish they could get something cheap and containing fewer additives compared to the locally available drinks in the town. According to Schein (1997), any change process occurring in the market has the aim of targeting a client. In addition, clients keep on changing their trends and expectations that is why the product comes with many flavors for customers to make a choice. There will always be a room to do better and delight the customer other than merely having them satisfied. A deep survey was conducted on the client’s problems, needs and wants in order to come up with this product. Contacting clients were done at the individual level in order to create a close intervention with the person and determine what he or she desires most. Several surveys conducted showed that most people would wish to have a drink that is different from pure water and contains essential flavors.
Human beings instinctively aim at satisfying a variety of intrinsic needs in all aspects of their life. These needs include social needs (for example, acceptance), various types of physical needs (for example, shelter and food), and individual needs (knowledge need) (Moore and Pareek, 2010). Therefore, Water Idea needs to satisfy physical and social needs of the customers. Measuring satisfaction is an essential tool that aids in evaluating the performance of a new product in the market. The performance incorporates factors such as the quality of the products delivered and market share gained through the sale of the products. In addition, satisfying customer needs aids the in formulating effective measures that need adoption in situations of low-quality product. On the other hand, consumer needs in a product, vary largely. These needs include the appealing quality of a product, the packaging method used, the price of the product, or the attraction of the brand name developed. Some products when introduced in the market have higher prices than the related products, their quality is not appealing, and have poor packing method that does not attract consumers and their brand name has no taste (Olive, 2010).
Marketing strategies
The market structure adopted by an organization acts as an element of undertaking need analysis of the market share. In this business, the market structure has to segment the potential market of products for effective analysis of the needs, and formulation of measures that need adoption by the company. In addition, the market structure formulates an effective strategy for undertaking business-to-business (B2B) and business-to-customer (B2C) business models respectively. If the marketing relationship develops, the values derived increases largely. This increase has the association of the easiness in the achievement of the desired satisfaction among the parties (Sadeh, 2002). Marketing of the Water Idea product will follow the B2B model because it will ensure a total interaction between the company and customer. In addition, clients will have an opportunity to take part in price negotiation and it takes care of the buyer behavior.
Apart from price matching, marketing the water idea products will adopt other means of maintaining the market share in UAE- Abu Dhabi. To begin with, the company will venture into a brand name creation of its products. An appealing brand name attracts more customers and creates customer loyalty to the product. As such, customers will always make decisions favoring the product. In line with brand name branding, the company will undertake an extensive promotion of its products. This calls for the sales team to venture in as many places as possible, to create client awareness of the new type of water that is different from the available ones. Advertising methods such as after sale services, media campaign, and offering gifts to the products bought by customers will bear good fruits for the water idea products if adopted. In addition, the processing team will adopt a different packaging system of the products because it forms a key step in market share possession. Finally, an intensive innovation on products is planned, so that they have no comparison with products from the competing firm (Mercer, 1996).
According to Moore and Pareek (2010), internet support by technology lerads to a cost-effective means of marketing that aims at interacting with the potential clients. Web marketing is more of direct marketing than mass marketing. In the interaction process of the internet, it involves one individual, although, the individual may gather pals around. This results in conveying the information directly to the individual. In addition, the individual may send the link to friends, and when they open, direct marketing occurs since the target person gets the information very fast. The company will open a website that portrays all its products with their respective prices for the potential customers to view. This form of marketing will lead to the development of customer loyalty and obtaining immediate customer feedback.
Distribution
According to (Simchi, Kaminsky and Levi, 2003), due to market nature and the nature of product nature, different products require different distribution strategies. The distribution strategy for the Water Idea products will be different from the strategy used on other soft drinks because is a unique product. This is because the two products have different properties and their markets do not exhibit similar characteristics. Moreover, the rapidly changing technology and increasing competition require that any business outline a proper distribution strategy to enable the realization of the business objectives. The analysis of the market coverage is very crucial especially for the drinks industry. Therefore, a distribution strategy that ensures effective delivery of products to the end user is important. This ensures that the products are available to customers at all times. A good strategy for use is the intensive marketing and distribution strategy (Linton and Donnely, 2009). In this strategy, products distribution will occur over a wide region where the market covers. To facilitate extensive marketing, intermediaries will be used. These include agents and dealers that are all over the town.
Product offering selling
Businesses operate to attain growth through profits; thus, the operations should be cost effective (Lewis, & Slack, 2003). A typical marketing transaction creates value in the satisfaction of the parties involved in the business transaction. This satisfaction is derived from the expectations each party had prior to the transaction, and the ability to give what is expected. Therefore, exchange will be the main value that will be derived in the transaction process. Included in the exchange process are the products or services that the concerned parties expect from each other. These products and services act as indicators of the values of the transaction that takes place. Selling of the product will take an extremely different perspective from those taken by competitors. Water is a drink for quenching thirst and customers take it in different forms. In order to ensure customer needs are fulfilled, the product will be offered in different forms. Both cold and warm forms of the product will be offered depending on the weather situation and the customer’s taste and preferences. Determining the target audience forms the best method of developing a selling strategy for a product that results into good selling channels ((Muller, 2011).
The increasing health concerns among consumers in UAE- Abu Dhabi have influenced the shift in demand for high quality water. Presently, water mixed with real fruit flavors is regarded as healthier since it contains high levels of nutrients essential for protection against harmful health conditions. Marketing fruit, flavored water as a soft drink will entail four stages in the marketing strategy. To start with, different flavors of water will be introduced in the market through advertisements and promotions to make the customers aware of the new drinks in the market. Secondly, the sales teams of the new brands will make the product grow especially during the summer when people have high needs to quench their thirst. Third stage is making the brand mature and competes with other brands. In UAE- Abu Dhabi, customers always like purchasing products that have good flavors and new tastes.
Budget
References
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