Smoothie Company: Business Development and SWOT

1547 words (6 pages) Business Assignment

5th Jun 2020 Business Assignment Reference this

Tags: Business AssignmentsSWOTFood and DrinkBusiness

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Company Name

The name OTG  refers to “On The Go” which came about simply how today’s society is. Everyone is constantly on the go whether it be for work or just simply everyday life doing earns or running kids to and from all their activities.  This product besides simply being a smoothie or NAB will be made from fresh fruits and vegetables.  OTG will be committed to serving those with certain dietary needs Vegetarian, Vegan, and Gluten Free. OTG will have multiple flavors consisting of those we have made and being able to make our own and Vegan induced. Therefore, the main idea of this product is to have a smoothie that is full of flavor and healthy without all the extra sweeteners. Something that can substitute your breakfast and Lunch needs.

Mission Statement

“Our Mission is to successfully deliver a product that is all natural and price effective for our consumers, and for all ages to consume. Value and customer service is our top Priority.”

The components of our Mission Statement is to promote a healthier way of living. OTG is also a product for all ages so getting kids ready for school, students on the go, gym enthusiasts, and my seniors with specific diets. OTG is a quality product that will save you time and provides a healthy way of life!

Trends in the industry

The NAB market continues to grow and excel according to population growth and expansion. Trends and different lifestyles add to an estimated Compound annual growth rate of 5.8 % from 2017 to 2025. (Grand View Research 2017)

(Grand View Research 2017)

The NAB market has increased because of the environmental and health issues in today’s world. The consumptions of these products have become popular as consumers become aware of product substitutes and energy drinks. Disposable income and increased value have certainly expanded this market as it continues to grow with the different lifestyles. The expected annual growth rate in the US estimated at 1.1% for total NAB and for the juice market a growth rate of -0.2% (CAGR 2019-2023). (Statista March 2019)

The revenue growth rate for (other Juices, Mixtures & Smoothies):

2 years Ago (8.6%)

Past Year (-0.3%)

This Year (-1.3%)

Next Year (-0.7%)

Next 5 Yrs. Avg. (1.2)

(Staista March 2019)

Strategic position

Customer Perception Factors is the best strategic position for OTG simply because it distinguishes itself from competitors by Price, Social Impact, features, Quality, Customer Service, and Convenience. This position sums up our Mission Statement and the company’s idea of being very different from the consumer’s best interest. Since our target, the market is for all ages this would put us in a position to have to make changes within our market shares to provide a competitive force.

In order to establish a strategic position, we would have to sell the consumers on our prices and quality of the product. Then we would show them the healthy portion of our smoothie’s and how we just use fresh fruits and vegetables. This product will provide a healthy alternative for those busy families and businesspeople on the go.

Distribution

For distribution my first locations will be near the main military base. There are at least 20,000 military personal and civilians that work there on a daily basis. Customer will be able to walk in or drive through. We will also set up where they can order their smoothies through and app and pay. I would then expand to in the surrounding are of the other 6 bases and the 2 ships yards. I would also look into a food truck so I can not only have my stores, but I can go to local business, on the bases and other areas that allow food trucks.

Risks

All companies face the risks  between regulatory, market and Technical risks. The regulatory Risks involved are the changing laws and regulations according to the health department guidelines and environmental issues. Food and beverage issues occur when you are not following proper health regulations and prepping procedures. Market Risk controls the market industry and market share. Some products might seem too similar in the market or the economy so this may cause a disruption in the current sales. When products are similar in nature they encounter these risks. Technical Ricks is a factor in today’s market when manufacturing and shipping are involved. When larger companies update their  equipment and machines, this enhances their production and services. Upgrading their equipment leads to higher costs and maintenance, which in turn lowers profitability and controlling costs.

The only way to be able to  control these risks to ensure that you have a quality product, and establish your market share, and that you  have a clear focus on the regulatory guidance within the food and beverage industry. Training employees is a big key factor when running operations for any business. Another way that you can control these issues and risks is to make sure you have a great quality control supervisor who can make the proper decisions and communicate with all levels of management.

SWOT Analysis

Strengths

  • A quality product used by health enthusiasts.
  • Product infuses all aspects of Health, Cost Effective, and Time-Saving.
  • Military growth and structured between all Services and Branches.

 

Weaknesses

  • The small industry may need to adjust logistics.
  • The manufacturing process can be costly and have high maintenance costs.
  • Cost for fresh fruits and vegetables.
Opportunities

  • Engage Military installations to sell a product.
  • Provide a product to the gym within a 100-mile radius.
  • Eventually, grow the market Nationwide.
Threats

  • NAB Competitors, those with similar products and functions
  • Negative Experience for Consumers, the bad taste of product or distribution parameters.
  • Pricing of substitutes by Market share, competitors establishing exact product at a lower competitive price.
  • Regulatory Risks and changes in the Environment.

Strengths –eventually expand nation-wide and promotes healthy eating. Military branches will expand and purchase product globally. Healthy eating has become more popular of the years and this product will help promote healthy eating on the go.

Weaknesses – Having to many flavors can eventually become a weakness for too big of a selection. A small company may not be able to handle large orders or logistical errors. Maintenance can be costly if not equipped with proper equipment or outdated machinery.

Opportunities – Military is a high influx of product purchasing. Providing a product to gyms in a 100-mile radius expands marketing and advertising tools, which can make the company, grow nation-wide.

Threats – Competitors with similar products can damage experience by comparing product. Regulations in the Food and Beverage industry changes and can consume an entire product. Negative experience with product or distribution can alter an image and its product service.

References

  • ztems Tagged with ‘non-alcoholic drinks. (n.d.). Retrieved from https://www.bevindustry.com/keywords/non-alcoholic drinks
  • Abrams, R. M. (2014). Successful business plan secrets & strategies: America’s best-selling business plan guide! Palo Alto, CA: Planning Shop.

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