Elite South: Non-Alcoholic Beverage Company SWOT & Description

This report provides a comprehensive company description and SWOT analysis of "Elite South," a new non-alcoholic beverage company focused on producing root beer. The report outlines the company's mission, strategic position, distribution channels, and potential risks, including legislative, environmental, and health concerns. A SWOT matrix identifies the company's strengths (growing root beer market, medical beverage potential, strong team), weaknesses (new market entrant, competition), opportunities (versatile product, health-conscious consumers), and threats (market leaders, price competition). The analysis concludes that while challenges exist, Elite South has opportunities to succeed by capitalizing on health trends and offering a cost-effective product through direct online sales. Desklib offers a platform for students to access similar solved assignments and past papers.

Reading Head: COMPANY DESCRIPTION & SWOT ANALYSIS
0
Management
January 25
2020

COMPANY DESCRIPTION & SWOT ANALYSIS 1
Contents
Introduction...........................................................................................................................................2
Mission..................................................................................................................................................2
Trends in non-alcoholic beverage industry............................................................................................2
Outline of NAB industry...................................................................................................................2
Growth...............................................................................................................................................3
Beverage Type...................................................................................................................................3
Key players of Root Beer..............................................................................................................3
Strategic Position...................................................................................................................................3
Distribution Channels............................................................................................................................4
Risks......................................................................................................................................................5
Legislative Risks:..............................................................................................................................5
Environmental risks:..........................................................................................................................5
Health and consumer perception:.......................................................................................................5
SWOT Matrix........................................................................................................................................6
Strengths................................................................................................................................................6
Weakness...............................................................................................................................................6
Opportunity...........................................................................................................................................6
Threats...................................................................................................................................................6
Conclusion.............................................................................................................................................7
References.............................................................................................................................................8

COMPANY DESCRIPTION & SWOT ANALYSIS 2
Introduction
The name of the non-alcoholic company is “Elite South”. The reason of selecting this
name is that “Elite” means a group that is superior in terms of ability or qualities and in
Southern part of United States consumption of soft drink is in highest quantity. This company
produces non-alcoholic energy drinks for people.
Mission
The mission of this company is to provide best quality soft drink to its customers
which can provide them refreshment. Company wants to keep its customers happy and
satisfied. There are different components of mission of the company such as market, Self-
concept, Concern of survival and public image. All these are main components of the
organisation as it is a new company and for them market and its components are essential
factors.
Trends in non-alcoholic beverage industry
There are five major trends NAB companies are focusing on such as Functionality,
Fermented drinks, Personalisation, Alcohol free alternatives, and Sustainability. All these
trends are having some significance which is helping NAB companies to focus on their
customers.
Outline of NAB industry
Since there is a raise in beverage industry many new products has been launched
every-day which has several benefits which are focusing on such as stress reliever, immune
system, health and beauty all these features helps in maintaining functionality. Fermented
drinks also have several health benefits such as it helps in digestion, it is probiotic rich and it

COMPANY DESCRIPTION & SWOT ANALYSIS 3
also helps in boosting immune. Personalisation is the important aspect as every company has
to launch new and personalised product in the market to attract target customers. It is not
necessary that every individual consumes alcohol so there is requirement of an alternative
and NAB is the alternative. Companies should avoid using products which can harm
environment because today consumers are aware about the environmental pollution and they
have started avoiding products which can harm environment (Burrell, 2019).
Growth
Rapid growth is analysed in Non-alcoholic industry in United States. According to a
research NAB industry is growing 1.2% annually and revenue of US$248,552 m is generated
in 2020 and market is expecting a high growth in 2020-2023. An average per capital
consumption stands at 220.3 litres in 2020 (Esser, Clayton, & Brewer, 2017).
Beverage Type
Root beer is made up of different types of herbs, roots, berries and barks. This can
also be considered as medical beverage. And there is an immense growth which is analysed
in the market.
Key players of Root Beer
Craft, A and W Restaurants, Seagram are some of the top manufacturers of root beer
and since in past there is a high growth observed in the consumption of Root beer it is
expected that in future consumption will increase at a high rate and by 2025 root beer will be
available in many countries such as China, Japan, India, Southeast Asia (Market Watch ,
2019).

COMPANY DESCRIPTION & SWOT ANALYSIS 4
Strategic Position
Shelf-Space: Shelf space is available for non – alcoholic beverages as they have to
replace alcoholic beverages. Social media plays an important role in this because with proper
advertising of the product and usage target audience can be influenced. Today everyone is
aware about their health and by showing important health benefits of the product market can
be created for NAB (R, 2018).
By choosing creative design, developing unique service model and promoting
highly specific expertise product can be differentiated from other existing product in the
market. As today people are concerns about environmental factors so by environmental
friendly packing or creative packing people can be influenced to buy new product.
Differentiating can also be done by developing a unique delivery model. Root beer can also
be promoted by specifying its expertise healthcare benefits to the people. Since it is made up
of different herbs and barks it can also be used as medical beverage. And since root beer can
be used by many other substances to increase their taste it can easily replace alcoholic drinks
or it can be a best replacement for alcoholic drinks (Gabriel, 2015).
Distribution Channels
This product will be directly available to customers i.e. online selling is being used to
sell this product. Consumers can have this product by monthly subscription or they can buy
according to their requirement. Online distribution channel is being used because it will save
intermediates cost and this product can be buy at lower rate than other existing product. This
product will be directly delivered at the doorstep of the customer by using courier facility or
by company’s delivery person. Production of this product will be done after analysing the
need of the product and in future a stock will be maintained after analysing the trend.
Delivery will be directly done from warehouse. Warehouse of the company will be placed on

COMPANY DESCRIPTION & SWOT ANALYSIS 5
different locations of the country for creating awareness about the product and this will also
ensure fastest delivery.
Risks
Legislative Risks:
Government have some rules and regulations. It is very important to mention
ingredients of a product on its label. And to prevent this risk company will mention all its
ingredients which are used on its label (Kregiel, 2014).
Environmental risks:
Today everyone is aware about protecting environment and for this certain steps is
taken by governments such as recycling of packaged material, environmental friendly
packing and many others. Company can take step to prevent this risk by using environmental
packing material.
Health and consumer perception:
This risk is involved at a high rate because public health is the major concern. For
preventing this risk company should mention product expiry date on the top of label and with
bold letters so that consumers can be aware and company should also aware people about this
fact (Roemer & Stockwell).

COMPANY DESCRIPTION & SWOT ANALYSIS 6
SWOT Matrix

COMPANY DESCRIPTION & SWOT ANALYSIS 7
Strengths
 The market of Root beer is increasing
on a rapid arte and this is the strength
of the company that people of every
age group is having positive response
towards this product.
 This also creates an advantage for the
company.
 And since this product can also be
used as medical beverage it is its
biggest strength.
 Team is the biggest strength of
company as all them contribute to its
success. Some contribute in
packaging some in designing and
many more (Grumezescu & Butu,
2019).
Weakness
 There are already many leaders in the
market.
 And to compete them is the tough
task because they are already aware
about the market trend but since this
is new company it will face some
challenges before settling in the
market.
 The employees of other companies
are also aware about the market
condition and so they will create
rules, design, and product according
to the needs of the people but since
this is new company employees are
also unaware about the challenges
they have to face (Galanakis, 2019).
Opportunity
 Opportunities are there for company
as this product can be used with many
other products and since this is a
healthy drink this can be consumed
by people of any age group.
 And with proper advertising of its
Threats
 Threats are from market leaders
because they are already in the market
and they have purchased a large
capital expenditure and have
economies of scale.

COMPANY DESCRIPTION & SWOT ANALYSIS 8
health benefits this product will create
more opportunities in the market.
 Since people are getting more
conscious about their health there are
wide number of opportunities which
have been created (Olson, & Lopez,
2009 )
 Price can also be considered as threat.
 People will not easily their preference
and taste because they are already
believing in one brand and switching
may not be easy for them.
Conclusion
“Elite Southern” is the new NAB Company in the market. It is offering Root Beer
which is useful for the health of the people. It can also be used as syrup or adding to different
eatables. This beer can also be used as medical beverage as it is made upon different kinds of
herbs and barks. Since there are many market leaders company has to face many challenges.
But there are opportunities for the company as well. Company has also decided to sell it
directly without using any intermediaries in between it can also result in cost benefit for the
people.

COMPANY DESCRIPTION & SWOT ANALYSIS 9
References
Burrell, H. (2019, 07 04). Five major trends for the non-alcoholic beverage industry in 2019.
Retrieved 01 27, 2020, from Foodbev Media: https://www.foodbev.com/news/five-
major-trends-for-the-non-alcoholic-beverage-industry-in-2019/
Esser, M. B., Clayton, H., & Brewer, R. D. (2017). Current and Binge Drinking Among High
School Students — United States, 1991–2015. MMWR, 474-478.
Gabriel, M. (2015, 11 05). A PRODUCT POSITIONING STRATEGY TO BEAT OUT THE
COMPETITION. Retrieved 01 27, 2020, from EIC: https://www.envision-
creative.com/blog/a-product-positioning-strategy-to-beat-out-the-competition/
Galanakis, C. M. (2019). Trends in Non-alcoholic Beverage. Academic Press.
Grumezescu, A., & Butu, A. (2019). Non-alcoholic Beverages. United Kingdom: Woodhead
Publishing.
Kregiel, D. (2014). Health Safety of Soft Drinks: Contents, Containers, and Microorganisms.
Hindawi.
Market Watch . (2019, 12 09). Global Root Beer Market 2019 - Industry Research Update,
Future Scope, Size Estimation, Revenue, Pricing Trends, Growth Opportunity,
Regional Outlook and Forecast to 2025. Retrieved 01 27, 2020, from Market Watch :
https://www.marketwatch.com/press-release/global-root-beer-market-2019---industry-
research-update-future-scope-size-estimation-revenue-pricing-trends-growth-
opportunity-regional-outlook-and-forecast-to-2025-2019-12-11
Olson,, J. S., & Lopez, C. (2009 ). Build Your Beverage Empire. U.S.A.: Jorge Olson.

COMPANY DESCRIPTION & SWOT ANALYSIS 10
R, S. (2018, 10 17). Experimentation - Trends in Alcoholic and Non-Alcoholic Beverage
Sectors. Retrieved 01 27, 2020, from FnBnews.com:
http://www.fnbnews.com/Beverage/experimentation--trends-in-alcoholic-and-
nonalcoholic-beverage-sectors-43863
Roemer, A., & Stockwell, T. (n.d.). Alcohol Mixed With Energy Drinks and Risk of Injury:
A Systematic Review. Journal of Studies on Alcohol and Drugs, 78(2), 175–183.