Analyzing Logistics & Negotiations for Drink Healthy Shop's Expansion

The report provides a comprehensive analysis of Drink Healthy Shop, a UK-based retailer planning to launch a basil seed drink with sustainable packaging. It encompasses market research, focusing on direct selling, customer trends, and competitive pricing. The product profile compares lychee and banana-flavored drinks for the Australian and Indian markets, considering factors like supplier availability, customer preferences, and health consciousness. The supply chain and logistics section examines the company's base, free trade policies, and technology porting challenges in India and Australia. Risk management identifies potential risks related to suppliers, operations, and technology, including a Failure Mode & Effects Analysis (FMEA). The conclusion emphasizes the importance of balanced logistics, effective analysis, brand image maintenance, and proactive planning for business expansion, referencing various academic sources.

MANAGING LOGISTICS
& NEGOTIATIONS

TABLE OF CONTENT
◦ INTRODUCTION
◦ MARKET RESEARCH
◦ PRODUCT PROFILE
◦ SUPPLY CHAIN & LOGISTICS
◦ RISK MANAGEMENT
◦ CONCLUSION

INTRODUCTION
◦ Drink healthy shop is a retailer in United Kingdom which is coming up with basil seed drink
of 290 ml with different type of packaging.
◦ It is because of CSR image of the company the organization has decided to use green logistics
and sustainable packaging so that the product can reach out of UK.
◦ The report consist of market research, supply chain, logistic, risk management and product
profile for the products.
◦ For lychee and Banana flavoured drinks in Australia and India are going to be compared in the
further presentation.

MARKET RESEARCH
◦ Direct selling is the market channel which is being used by Drink Healthy Shop retailer
so that there is going to be higher customer base.
◦ The company is focusing on the details of the customers and making sure that they are
following the trends which are coming in the country as well.
◦ The highest selling drink in UK is Coca Cola and Pepsi but even these large businesses
are slowing adapting to health factors for the customers.
◦ Company uses competitive pricing strategy by which new customers can be attracted
towards the corporation, with high sales.
◦ There are zero calories drinks and sugar free drinks which have been coming up in the
country which is why there is a huge scope for Basil Seed Drinks in the country as well.

CONTINUE…
◦ Customers are slowly getting aware of the factor that health is very
important for a long and healthy life which is why they must consume
nutritious and vitamins which are required by the body to stay fit.
◦ Segmentation needs to be done effectively by Drink healthy Shop in order
to be able to operate effectively and get the trust of the customers as well.
◦ Food standards in the country have to be maintained so that the company
would be able to make sure that they are having a stable growth and make
sure that they have a good competitive advantage in the market as well.

PRODUCT PROFILE
Lychee Basil Seed Drink (India) Banana Basil Seed Drink (Australia)
 Lychee is available easily in India which is going
to be a great factor for the company because they
would be able to find help in getting in raw
material.
 Drink Healthy Shop retailer is going to find it
easier to expand themselves in Australia because
Banana are easily accessible in the country.
 Suppliers are going to be multiple but with a lot
of experience and good channels which the
company is going to opt which is going to be a
great factor for the company to be able to grow
effectively.
 Suppliers are going to be found effectively in the
country because that is a very healthy fruit which
is preferred in Australia the most which is going
to be a great factor for the overall working in the
country.

CONTINUE…
 Fresh lychee is available easily in India and
customers in India also prefer fresh drinks which
is very necessary so that there is going to be
higher functioning.
 Frozen banana is easily available in the country
which can be taken in bulk by the company but
the freshness in the drink is going to be missing.
 In India clients do not work out but they want to
eat health so that they can continue with their
busy life's with diet control and make the
purchasing of lychee basil seed drink be high.
 Customers in Australia are very health conscious
which is why they work out even more and need
a good diet with it and that is going to get in
higher sales for banana basil seed drink.

SUPPLY CHAIN & LOGISTICS
Lychee Basil Seed Drink Banana Basil Seed Drink
 Drink Healthy Shop is having a strong base for
themselves in the market which needs to be
maintained. There are free trading policies and
India is welcoming companies to establish
themselves in the country which would be a great
opportunity for the company to have for a long
run.
 There are going to be high taxes and other
insurance costing which is going to be present for
Drink Healthy Shop which is going to require a
lot of investment. Drink Healthy Shop has a good
economic stability in UK because of the unique
factor which the products and services which the
company is dealing within.

CONTINUE…
 Porting the technology in India would be a task
for the company because India is still developing
and has not been able to have the right
technology but there are great ideas which can
generate from the country to be able to maintain
the CSR factor.
 Porting the technology is not going to be that
high because the country is developed enough
and finding the right technology locally would be
present as well which is a great factor for a long
run.
 Suppliers in India for fresh lychee is going to be
present since the country is dependent on
agriculture.
 Finding the suppliers for frozen food is high and
fresh bananas have to be grown by the company
which is another investment which the company
has to make.

RISK MANAGEMENT
Risk description Likelihood Impact Severity Mitigation
Suppliers Medium Medium High The company needs to find the right
connections in the country to be able to get in
suppliers from time to time so that the
organization would be able to develop
themselves.
Operation High High Medium Training and developing the employees is
going to be focused upon by Drink healthy
Shop in the countries they are thinking of
expanding so that there is good working and
processing is going to be smooth.

FAILURE MODE & EFFECTS ANALYSIS
Failure mode Severity Probability of
occurrence
Probability of
detection
 Wrong with
packaging
5 4 4
 Suppliers demand
more
3 5 4
 Technology
transportation
5 3 2

CONCLUSION
◦ From the above presentation it can be analysed that there are right actions and risk analysis which have
to be done so that there is smooth working.
◦ Company needs to make sure that their logistics and supply chain is balanced which is good for the
overall development.
◦ Analysis and evaluation must be made effectively which is good for the overall working of the company
so that there is effective working and performance which the company is going to have.
◦ Reputation and brand image must be monitored and maintained so that there is going to be higher
satisfaction.