7BSM2001 Business strategy for fresh fruit juice Assignment Sample
1.0 Introduction
In recent times, the craze for fresh fruit juice is increasing. The market for fresh fruit juice has seen immense growth. There were a time people used to consume soft drinks or cold drinks. The consumption of soft drinks or cold drinks affects the body in many ways. As soft drinks and cold drinks contain lots of sugar and caffeine. Nowadays, people are getting more and more conscious about their health. Rather than having soft drinks, they prefer having fresh fruit juices. Having fresh fruit juice is beneficial to health in many ways. Consuming fresh fruit juice does not affect the health of anyone.
2.0 Ideation Process
2.1 Company value
As a startup company of fresh fruit juice, the core values of the keep is to keep in mind the service of the company. This company provides superior service to its customers. The company also aims to provide services keeping in mind the environment. The company provides a minimal amount of waste. The most important part of the service that it provides is that the juice that is being produced by the company is 100% organic, and it uses real fruits to create the juice (Antikainen et al., 2017). No pasteurize being used when making the fresh juice. Another most important service that it provides is instead of sugar, the company uses honey, and this helps the customers to maintain their health.
2.2 Brand
The brand name matters when it comes to setting up a new business. This company does provide fresh fruit juices to the customers. The name of the brand is mixed fruit juices. It provides all kinds of juices to the customers. The company provides different kinds of juices, smoothies and shakes that attract customers toward the company. The name of the brand can go up by only providing the quality of services that attracts the customers (Simonsen, 2017). The brand name is important because it creates the overall impression of the business to the customers. By the name of the4 brand, the customers can understand the offering of the company. A nice brand name does attract a lot of customers.
2.3 Competitive Advantage
There are many companies in the field of fruits juices. Not only are the companies new, but they have been operating the marketing for a very long time. The product quality of the companies is also very good in comparison. Moreover, they provide packet juices that can be carried anywhere and can be stored too. The companies like ‘real fruit” juice, “Tropicana” and “B-natural”. There are many competitors in the field of fresh juice (Saur-Amaral et al., 2018). The only threat the mixed fruit juice company can face is that all the companies are doing their market for a long time, and the customers do have their trust towards the company.
2.4 Innovation
To overcome the challenges of the competitors, the brand mix fruit juices have to come up with some innovative ideas. With such an idea it can attract the customers towards it. The innovation that the company brought up is to make juices, smoothies and different types of shakes. It offers all the products that are being made from real fruits. The company has to come up with a plan to launch packet juices (Bashir and Verma, 2017). The juices are being made with real fruits and milk. No sugar is being used in the company; rather, the company use honey. This is the main innovation that the company produced because the health of the customers is important to the company.
2.5 Research
Before a new company comes on the market, it is necessary to study the competitors and do some research. The company has done research about the competitors and the kind of product that they make and all the pricing and all. Keep all this in mind the company has come up with an idea of making smoothies as well as shakes with the juices that they usually. The use of honey is what they bring to the list. This will attract customers in many ways as it will help them in maintaining their health.
3.0 Model of Business
Introduction
With the times, more people are getting conscious about their health and more people are trying to consume health product. Rather than having the cold drinks, nowadays people are starting to have fresh fruit juices. This overall benefit the customers are they are consuming less amount of sugar. The increment of this market can bring several kind of opportunity in business point of view.
Company value
The core value of the company is that the company provide superior services to the customers and all the product are 100% organic. The value of the company can be increased on basis of counting and uplifting the overall profit values and budgets. There are several ways to evaluate this aspect but a successful marketing strategy can increase the company value.
Research
This is an important step for the company. The company has to do all the research about the market values and the competitors before launching their product in the market. The research approach is dependent on several aspect like surveying the existing data and findings. There are several examples which can be borrowed in order to understand the real condition.
Customer Relationship
The relation with the customers is an important part for the customers. The more the customer get happy from the company the more benefit the company will get from the customers. This is one of the important aspect and through a good relationship a strong bond can be made. It also includes the marketing strategy.
Stakeholder
Stakeholders are an important part of a business or a company. For the company mix fruit juice it is important for the company to take care of the stakeholders. The company has two stakeholders: internal and external. The internal are the employee of the company and the external are the customers of the company.
Brand
The branding is an important thing for a company. More of the customers are attracted to the company because of their branding. It will give the customers the overall idea of the product that the company offers.
Investment
This is a key part for any business before coming to the market. The investment that it has done for the company will be beneficial for the company or not. Will they earn the profit or the business will go to loss.
Ideation Process
This is the main step to start a company. The whole process of doing the idea is very important. The brand name, the product that the brand will produces and everything comes under this step. All the ideas, the changes that it need to do from the product that is available in the market.
Value Creation
Before launching a company or for a newly set up company it is that all the company comes with the aim to grow their market value. This is same for the company mix fruit juice. The way to create the value of the company the main thing that the company needs to do is to maintain the reputation of the company in front of the customers.
Figure: Business model
(Source: Soft created)
4.0 Value Creation
When a company is planning to launch, or a new business has been set up. Like any startup company or business, It is important for them to keep in mind the different types of challenges that they can face and the ways to overcome them. All the companies are being set up with the intention to grow their market values (Terrenghi et al., 2017). The same is with the mixed fruit juices. The was through which it can grow their market values are as follows-
- The company has to come up with some innovative idea that attracts the customers. Like there are many fruit juice companies that produce only juices. But the company mix fruit juice to produce smoothies as well as shakes with their regular juice product.
- The second important thing that the company has to keep in mind does competitive pricing. This will attract a lot of customers. Many companies are providing juices, but the price is generally high (Beinke et al., 2017). This company will be offering many products that will be priced competitively in comparison to the are companies available in the market.
- Advertising is another important point that must be kept in mind. The more advertisers that the company will come up with, the more people can know about it and the product that it offers. Marketing of products does play an important role in this field. The marketing needs to be done in such a way that the customers get attracted towards the company very well.
- Another important thing is that the company has to take over their competitor. Having competitors is always harmful. Sometimes it does good for the company, too (Sarasini et al., 2017). By competing with the competitor’s many people come to know about the company, and thus it can have more customers.
- One of the most important points is to make the relationship with the customers good. It must be kept in mind that relation does play an important role in the market (Firsova, 2018). By making the bond of the customers and the company more strong the company can hold the position of the existing customers, and the existing customers, as a result, can tell other people about the company.
- The quality of the product is another important factor. As because the customers will be satisfied only if the product that has been consumed by the customer is of good quality. So the quality of the product plays an important role (Kühne and Böhmann, 2018). While supplying the product to the customers, the company must double-check about the expert date and the fruit that they used in making the product.
All these points are important for the company to grow their market value. As maintaining a reputation in the market is a big thing to do nowadays. By providing all the services and good quality products, the company can build up their reputation in the market and more of the people will come to know about the company. This will help in gaining more popularity in the market, and the market value of the company will grow.
5.0 Types Of Stakeholders and Ownership
The role of stakeholders is very crucial for the company. As this company is a startup plan, the company value will be essential to the stakeholders. There are two types of stakeholders for the fresh fruit juice company. These two stakeholders are internal stakeholders and external stakeholders. Under the internal stakeholders, the key components are its employees. As this is a startup company, their first priority should be on the development of the employees’ skills. Employee retention is very important for the juice company (Lambert and Montemari, 2017). The juice company needs to be very dedicated to their juice product that can attain the maximum amount of reputation in the juice industry.
Under the external stakeholders, the most crucial is the customers of the company. Then comes shareholders, and then the laws and regulation imposed by the government. The customers will create value for the company in the market. The value provided by the customers will come from a good reputation. And the reputation is being achieved by providing the good quality juices. Often these days, many juice producing companies manufacture by taking not so fresh fruits. Therefore the company needs to keep this thing in their minds (Lapovsky, 2018). After the customers, the second most crucial external stakeholder for the company will be its shareholders. The shareholders are that entity of the company that will contribute to the revenue and profit earned by the specific company. For this reason, the company should always invest in productive resources. The “return on capital” is another measure which the shareholders take into account. If the company does not make a profit out of business, then no shareholders will show interest in buying the share. Shareholders often act as an investor or financier who finances the business. The next major external stakeholder for the fresh fruit juice company is the supplier. For this business, the role of the supplier is very crucial (Malik et al., 2017). The business will need to purchase the raw materials, for example, the different types of fruits like mango, kiwi, banana, orange, apple etc., these must be fresh. As the company is also thinking about some innovations like producing ther smoothie, shake etc., they will need to purchase other different inputs from a food quality supplier. If the business makes a profit in the long run, then it will also gain bargaining power over the suppliers. The role of government rules and regulations is also very important for the fruit juice business. The change in the inflation rate, money supply, change in tax rate etc., will have a great impact on the manufacture of fruit juice.
6.0 Detailed launch plan
- The first step under the launch plan of the business is to determine the business niche. Business niche means the identification of a specific product. The company is focusing on the production of fresh fruit juice that includes organic juices, smoothies and different types of shakes.
- After determining the business niche, the company will need to prepare a business plan. This business plan will include the projection of the upcoming three-year profit, expenses, loss, debt, etc., which will be referred to as the budget business plan. Initially, when the business is getting into the business, it must project the expenditure that is going to be incurred after initial investment (Nussholz, 2017). After each year, this budget business plan will be reviewed, and the estimates will be again reformulated.
- The company will start working on innovative approaches for adding the juice flavours in such a way that it will make the costumes interested. There are various normal flavours available in the market, like mango, orange etc., but the company will try to include some unique flavours for the preparation of the smoothies, shake as well as juices. They can conclude watermelon, strawberry or pineapple juice along with the shakes and smoothies.
- After that, the most important factor is to get a license and permit number from the government. For Starting a company of fruit juices and beverages, the company will require a food manging certificate or food enterprise (Pucihar et al. 2017). For this reason, the company owner needs to contact the health department for getting a trade license on food.
- After getting the license, the business owner will now find the vendors and suppliers. They need to look for local vendors for reducing transportation cost; the company owner should also contact the local groceries and farmers for the delivery of the fresh fruits. The owner can also make a list of the potential “produce suppliers”. The company should always try to buy the supply at the bulk quantity because it will cost the business a lower cost compared to the single quantity of the produce supply.
- Location is one of the major sources for providing fruit juices. Not all locations will provide great demand. The company must select the location with consciousness. If the company thinks to deliver the fresh fruit juice bottles, then the location selection should be at that area where it can get its potential customer base from. The location also can be any office or colleges.
The owner of the business should buy the equipment and suppliers at this stage. For making smoothies and shakes, the company needs to buy advanced levels of technologies. These advanced levels of technologies will help to build customer retention to a greater extent.
The last stage of launching the business will come with the implementation of a proper market plan. The business needs to acquire several methods for promoting its new business (Rhazali et al., 2018). The promotion or the advertising of the business can occur from adopting various methods like social media marketing and distributing the affiliate.
7.0 Investment pitch
This section will discuss the several methods of adapting finances for the business. This will depend upon the estimates on the expenditure and the profit or revenue projection. After estimating the profit and revenue along with the projected expenditures for the next five years, the company will decide to take the finances or the investors for investing in the business.
| INCOME | ||||||
| “Year 1.” | “Year 2.” | “Year 3.” | “Year 4.” | “Year 5.” | ||
| Revenue | ||||||
| fruit juice plain | 25,000.00 | 25,500 | 26,520 | 28,111.20 | 30,360. | |
| shakes | 43,000.00 | 43,860. | 43,000 | 44,000.00 | 47,520 | |
| smoothies | 13,650.00 | 13,923.0 | 14,479.92 | 15,348.72 | 16,576.61 | |
| Total revenue | 81,650.00 | 83,283.00 | 83,999.92 | 87,459.92 | 94,456.71 | |
| Cost of Sales | ||||||
| fruit juice plain | 9,375.00 | 9,562.50 | 7,000.00 | 8,000.00 | 8,640.00 | |
| shakes | 8,000.00 | 8,160.00 | 8,486.40 | 8,995.58 | 9,715.23 | |
| smoothies | 5,000.00 | 5,100.00 | 5,304.00 | 5,622.24 | 6,072.02 | |
| “Cost of goods sold” | 27,587.50 | 28,139.25 | 29,264.82 | 31,020.71 | 33,502.37 | |
| “Gross Profit” | 54,062.50 | 55,143.75 | 54,735.10 | 56,439.21 | 60,954.34 | |
| EXPENSES | ||||||
| “Operating expenses” | ||||||
| “Sales and marketing” | 15,000 | 15,300 | 15,912.0 | 16,867 | 18,216.058 | |
| “Payroll and Payroll Tax” | 15,000 | 15,300 | 15,912.0 | 16,867 | 18,216.058 | |
| “Property taxes” | 15,000 | 15,300 | 15,912.0 | 16,867 | 18,216.058 | |
| “Maintenance, repair, and overhaul” | 15,000 | 1,530 | 1,560.0 | 1,590 | 1,620.000 | |
| Utilities | 15,000 | 15,300 | 15,912.0 | 16,867 | 18,216.058 | |
| “Administrative fees” | 15,000 | 15,300 | 15,912.0 | 16,867 | 18,216.058 | |
| Other | 15,000 | 15,300 | 15,912.0 | 16,867 | 18,216.058 | |
| “Total operating expenses” | 105,000.00 | 93,330.00 | 97,032.00 | 102,790.32 | 110,916.35 |
Figure 2: Investment forecast
(Source: Excel)
8.0 Conclusion
This project has analyzed the business launch of a fresh fruit juice company. This company has adopted several strategies to add innovations in their production. For developing the business outcome, the company thinks to adopt innovative approaches on their business project. This project has evaluated the company; score values, its strategies, and launching plan. In the business launch section, a proper description of each step has been described with full insight. In the last section of the project, there will also be the three-year projection on the company’s revenue, expenditures and profit. It will help the company to acquire the investment based on the projection.
Reference List
Journals
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