Flavorite Foods' Expansion into the Soft Drinks Market

Flavorite Foods, known for its successful ice cream venture, aims to enter the highly competitive soft drinks market. The company's business plan highlights a strategic approach involving aggressive pricing to attract customers and gain market share. Emphasizing sustainability, Flavorite intends to build a supply chain with local suppliers to minimize costs and environmental impact. Additionally, rigorous quality control processes are outlined to ensure product excellence and compliance with industry standards. This comprehensive strategy is designed to position Flavorite as a formidable player in the soft drinks sector while maintaining its reputation for high-quality products.

Running head: BUSINESS PLAN
Business Plan
Based on Flavorite Ice Cream
Student’s name:
Name of the University:
Author’s note:

1BUSINESS PLAN
Executive Summary
In this study, the main focus will be on the business plan of the organisation Flavorite Foods,
which operates in the Trinidad and Tobago and sells ice cream. The organisation is planning to
enter the soft drink industry to sell the fruit juices, flavored drink and carbonated drink to the
customers in Trinidad and Tobago. In this study, the description of the company has been given
in the first part highlighting the mission statement. This business plan has been made based on
the secondary data findings. In the following paragraph, the industry evolution has been
focused on the industry size, competition and nature. In the industry, the soft drink
manufacturers are many and Favored Foods need to take the strategy of promotions in order to
attract the customers. In the market analysis section, the marketing of Favored Foods has been
discussed. Financial projection and market share development has been given. In the operation
management discussion, the operation strategy and recruiting new employees have been
discussed. In the recommendation section, the lower pricing strategy, supply chain
development and improved in quality control process has been suggested.

2BUSINESS PLAN
Table of Contents
1. Introduction............................................................................................................................... 4
2. Company description.................................................................................................................4
3. Industry analysis........................................................................................................................ 5
4. Market analysis:.........................................................................................................................7
5. Marketing plan.........................................................................................................................10
6. Operations plan....................................................................................................................... 11
7. Recommendations...................................................................................................................13
8. Conclusion............................................................................................................................... 14
Reference List.............................................................................................................................. 15

3BUSINESS PLAN
1. Introduction
A business plan is the written document of a business's future. A business plan is the
description of how a business will forward in the future. In order to start a new venture or new
business plan, a document is needed to jot down the ideas of business. In this study, Flavorite
Foods organisation has been chosen to expand the business in another direction in Trinidad and
Tobago. In the first part of the study, the company description has been given with details. In
the latter part of the study, industry analysis, market analysis and operational management of
the business have been described in light of starting a new section of the organisation.
2. Company description
Flavorite Foods Limited was established in the year 1970 in anticipation of a need for
the quality frozen desserts of international standards with true Caribbean identity. The initial
brand name of the organisation SnoJoy, however, the new name with Flavorite, using the heart
in the middle of the name used to enhance the image of the organisation. In the year 1970
Vernon Charles started this business to manufacture and distribute the chocolates, ice cream,
candies and dairy products in conjunctions with Beatrice Foods, a large US company
(Flavoritefoodstt.com, 2017) From the beginning of the company, the main motto of the firm
was to give the international standard products to the customers focusing on innovation as well
as the ‘take-home’ services. Headquarter of the business is in San Juan in Trinidad and Tobago.
Mission Statement
Flavorite Foods wants to provide quality products and excellent services that would be
synonymous with consistent innovation (Flavoritefoodstt.com, 2017).
Describe company products
Flavorite Foods manufactures Ice Cream mainly in different types, golden vanilla, white
vanilla, chocolate chip, peanut, coconut, strawberry, maple almond and pistachio. In addition,
Flavorite Ice Cream makes various unique types of products like Premium Ice Cream, Deluxe Ice

4BUSINESS PLAN
Cream, frozen dessert, sugar-free ice cream and low-fat ice cream for the customers and these
products are costly. Moreover, Flavorite Ice Cream offers innovative ice creams that are
popular among the customers, Milk Lollies, Freeze Pennacool, Hola Kola, Dark and Gold and
Flavorite Cones.
Current status of business
Today, Flavorite Foods presents not only in Trinidad and Tobago, but also it exports their
ice cream in ten English speaking Caribbean countries. The outlet is located at Boundary Road
in San Juan, however, it is distributed the products through retail outlets.
Legal structure of business
Flavorite Foods is publicly traded and the company is listed on Trinidad and Tobago
Stock Exchange. The owner of the business is Flavorite Foods Limited.
3. Industry analysis
Flavorite Foods sells ice cream in various types and it is going to enter soft drink and
non-alcoholic beverage industry. In the Trinidad and Tobago, the market of hard drink and
beverage is strong; however, the carbonated soft drink is popular among Trinidad and Tobago
people.
Industry size and structure of industry
Soft drink industry in the Trinidad and Tobago is strong and Trinidad and Tobago is
experiencing straight year of economic growth in 2017 and it increases 5.3% from 2014. Unlike,
the Caribbean neighbors, Trinidad and Tobago have industrial sector and agriculture sector. In
soft drink industry, it has dynamic and developing retail food sector and in open market soft
drinks are also available. Trinidad and Tobago's soft drink market is composed of over 670 food
and beverages stores and it is estimated at almost US$ 800 million (Trinidadexpress.com, 2017).
The structure of the industry is not complex as the agriculture sector of Trinidad and Tobago is
strong. In the open market, carbonated soft drink, fruit juice and flavoured drink are available.
In addition, in the food retail chain, the soft drinks are sold for the all aged people. In the

5BUSINESS PLAN
Trinidad and Tobago, one of the best selling soft drink is Chubby and apart from local
companies, PepsiCo and Coca-Cola are also present in the market.
Trends in the market
There is a large trend toward low fat and healthy foods in the Trinidad and Tobago
market. While the majority of supermarkets are conveniently located in near workout facilities,
many locals visit the supermarket to buy power drinks, fresh fruits and vegetables after their
workouts. In political factors, Flavorite Foods may face the issue of soda tax that can affect the
business in carbonated soft drink production. In the Caribbean islands, competitive products
and policy in pricing need to follow by the organisation as the political condition, governmental
changes must be followed. In case of penetrating developing and emerging market, Flavorite
Foods need to follow the political conditions and regulation. In economic factor, Trinidad and
Tobago have been experiencing the best economic growth in the year 2016 and GDP rate is
high. The disposable income of the customers of the country is enhancing. The inflation rate is
in control and GDP per capita growth is 2% (Bewayo, 2010). In social factor, a majority of
people in global perspective believe in healthy lifestyle and healthy drinking. Entire aisles are
now used to display low fat and health food products. In Trinidad and Tobago, the customers
aged between 37 and 54 are concerned in nutrition-based drinks. Moreover, in technological
factors, in the soft drink production, the manufacture units must be compatible enough and
factories should have a good supply chain. Moreover, the marketing department must have all
advanced technologies and equipment (Johnson, 2011). The packaging of bottles and cans must
be high quality and recyclable.
Key success factors, long-term prospects
Key success factors in the soft drink industry could be based on various things as
Flavorite Foods needs to follow on the locality of the stores, supply chains and distributions,
tastes and hygienic factors offered by the soft drink, quality of the drink and sales incentives
programs taken by the organizations.

6BUSINESS PLAN
4. Market analysis:
Target market:
Market segmentation can be done in four basic categories, demographic, behavioral,
psychographic and geographic.
Geographic Demographic Behavioral Psychographic
Customers’ location,
region, urban/rural
Age, gender, socio-
economic condition,
occupation
Rate of usage,
benefits sought,
readiness to
purchase, loyalty
status
Personality, attitudes,
lifestyles, class
Table 1: Market Segmentation
(Source: Dotzler, 2012)
Among all the segmentation, Flavorite Foods can target specifically to the demographic
and behavioral segments. In the demographic segment, the age group of young generation can
be the main focus as the outgoing people drink carbonated soft drink. The drink will be in
various flavors and colors that would be attracted to the young generation normally. In
behavioral segmentation, the management of Flavorite Foods will target mainly loyal customers
who purchase from Flavorite Foods. Flavorite Foods is a renowned company in Trinidad and
Tobago and it clear that the new launch of soft drink will eventually create excitement. The
customers who generally drink the soft drink of other companies will be the target of the
organisation.
Estimate market size:
Estimate market size of the organisation Flavorite Foods in soft drink business will be 3%
by the end of 2018 as in the beginning of 2018; Flavorite Foods will launch the soft drink
products. Flavorite Foods will sell the products in the open market through retail stores and in
own outlets as well.

7BUSINESS PLAN
Buyers’ behaviour
Buyers’ behaviour of the customers in Trinidad and Tobago is mainly based on the
cultural factors as the people in Trinidad and Tobago have faith in native culture and social
class. However, in buying behaviour of the people in Trinidad and Tobago for a soft drink could
be based on the social factors like reference group and roles and status in society. Customers of
the Trinidad and Tobago like hard drinks and the people from different class intend to choose
from the reference of the organisation. The buyers' behaviour of the customers from Trinidad
and Tobago can be segregated to the economic situation of people and personality of the
customers and their preferences (Mullins, 2010).
Competitors’ analysis
In the market, there are various soft drink makers are present in the Trinidad and
Tobago, however, the customers have to choose among the manufacturers. In addition,
customers have benefits of having large ranges of choices like fruit juices, carbonated soft
drinks and soda based drinks with flavors.
Products Market Sizes Positions Strengths
PepsiCo 20% They mainly focus on
the all aged group
and it is available with
various products
Diverse flavors
Strong dealers
Shelf banners
Coca-Cola 34% Special references to
the young generation
and strong brand
presence
Supply chains
Global presence
Sponsorship of local
clubs
Caribbean Bottlers 13% Fruit-based juice and
position in the market
mainly for the
children group
Native influence
Merchandising
strategy

8BUSINESS PLAN
Dexter Jacobs 7.5% Orange-based
products and mainly
famous among the
bold imagery
Coupons and loyalty
programs
Media presence
Table 2: Competitors’ analysis
(Source: Self-developed)
Forecasting sales and market shares:
Registered
products
Sales in Dollar
(2018)
Unit sales Sales (2019) Unit sales
Carbonated drink $25,0000 120000 $27,0000 130000
Fruit juice $21,0000 90000 $30,0000 100000
Flavored drink $12,0000 30000 $19,0000 40000
Orange drink $21,0000 70000 $27,0000 80000
Squash $8,0000 20000 $10,0000 30000
Table 3: Forecasting sales of Favored Foods
(Source: Self-developed)
Market share of the organisation Flavorite Foods is aiming to make 3% by the end of
2018 and at the end of 2019, the organisation is aiming to take 5% of the market share in soft
drink industry.
5. Marketing plan
Business position
The business Flavorite Foods will be positioned itself in a soft drink as an inexpensive
soft drink. In the Trinidad and Tobago market, the alcoholic beverages are high in demand and
these are not costly, therefore, the soft drink in the market is also inexpensive and people can
afford it easily. The positioning of a brand is targeted to occupy the distinct position in the

9BUSINESS PLAN
market through effective strategy (Schiff, Hammer & Das, 2010). In addition, the positioning of
Flavorite Foods will be based on the urban section mainly where people will purchase the
products from retail stores. Flavorite Foods' positioning can help them to identify the eyes of
the purchaser. The positioning strategy of the organisation is to merchandise the products in
the front shelf so that customers can find it easily.
Pricing strategy
Flavorite Foods organisation will take the price skimming strategy in order to place the
soft drink products on the market. In price skimming, an organisation sets the price higher than
the norm when the product is launched in the market, after that, the prices of the products get
decreased slowly (Digeronimo, 2014). It helps the organisation to get the higher profit from the
beginning and it can reach the breakeven point in an easy way.
Promotions
Flavorite Foods will use two types of promotions. First, the organisation is going to use
Out-of-home promotion. In this promotion, the organisation is going to use hoardings and
billboards on the roadsides in order to grab the eyeballs of the customers. In addition, the
Flavorite Foods is going to take the online campaign through social media in order to attract the
customers largely. Giving promotional offers ‘scratch and win’ offer, ‘sms campaign’ and
discounts on prices can attract maximum customers. Moreover, Flavorite Foods can advertise
on televisions and radio to reach maximum customers.
Distribution channel
The distribution channel of the organisation is going to be direct as it could save the
environment as fewer vehicles would be used. Small distribution channels are easy to maintain
and suppliers of the organisation are smaller (Jones, 2012). Flavorite Foods will manufacture
the products and they will use the retailers to sell the products. Through retailers, the soft drink
will be reached to the consumers.
Management team and company structure

10BUSINESS PLAN
Flavorite Food organisation has already a team of ice cream business; they need to
diversify the team in soft drink business also. The CEO needs to make a different team in soft
drink business. The company structure of Flavorite Food is simple and vertical. The
communication flow of the organisation goes up to down. In the structure of the organisation,
the Flavorite Food needs to make different structure based on organization component with
various departments.
Job title, number of persons, job descriptions, position, qualification
The HR department of the organisation will segregate the employees in ice cream and
soft drink business. However, the organisation needs two managers who will make a strategy
for the new business.
Job title Managers
Number of persons 2
Job description s Planning directing, operation and overseeing of the business
Qualification Masters in Business Administration or Diploma in Event
Management
3 years of experiences
6. Operations plan
Operating Models and Procedures:
Operation of new business can be done following the basic framework. An
organizational framework has various steps and it follows the flow of the operation directed by
the organizational head. In the primary stage, the organisation segments the market and selects
the target market (Maschke & Knyphausen-Aufse, 2012). In the second stage, Flavorite Foods
decides the products that they are doing to offer. In the process, the business needs to design
the organizational structure and processes to work. In Flavorite Foods, the organisation has

11BUSINESS PLAN
finance, human resource, R&D, corporate law and trading department. The operation process is
included in the physical assets and deployment of the human resources.
Figure 1: Operation Management framework
(Source: Zhang, Shah & Papageorgiou, 2013)
Storage of Inventory:
In the manufacturing unit of the organisation needs to manage the inventory perfectly
as inventory must be placed with users that they can easily follow (Anderson, 2013). In
addition, the point-of-use of inventory must have fewer handlers and it must have lower
operating cost. Flavorite Foods will manage the warehouse in the central location with security,
maintenance and utilities of building.
Quality Control
In Trinidad and Tobago, quality control process is related to the audit of the food safety
department. In addition, the Flavorite Foods should ensure the bottled and water they are
going to use must be safe. The quality control department is already present in the Flavorite