Business Plan: Strategic Analysis of a Non-Alcoholic Beverage Market

This document presents a detailed business plan for a non-alcoholic beverage, encompassing various aspects of the business, including a company description, industry analysis, and strategic positioning. It identifies the target market as health-conscious individuals aged 12-30 and discusses the competitive landscape, highlighting the need for a unique selling proposition. The plan includes a comprehensive marketing and sales strategy focused on promoting the beverage as a healthy alternative. Furthermore, it addresses ethical considerations and proposes a social responsibility plan centered around water conservation. The document also includes a marketing plan aimed at increasing market share and supporting the cause of promoting health among the younger generation. The financial aspects, including projected income statements, are also presented to evaluate the future business potential and revenue growth. Desklib provides a platform for students to access this and other solved assignments.

Running head: BUSINESS PLAN
BUSINESS PLAN
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction......................................................................................................................................2
Company Description......................................................................................................................3
Industry Analysis and Trends..........................................................................................................4
Strategic Position & Risk Assessment.............................................................................................5
Target Market..............................................................................................................................5
Competition.................................................................................................................................5
Marketing Plan and Sales Strategy..............................................................................................6
Ethics and Social Responsibility Plan.........................................................................................7
Assignment 2.................................................................................................................................10
Marketing reason.......................................................................................................................10
A cause to support.....................................................................................................................10
Structuring the campaign...........................................................................................................10
Conclusion.....................................................................................................................................11
References......................................................................................................................................12

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Introduction
The report is concerned with providing an effective business plan for a product which is a
non-alcoholic beverage. The business plan will consist of the description of the essential aspects
concerned with the organization. The external and internal factors that tend to affect the
organizational functions are given. The factors have been utilized to provide a systematic
evaluation of the business prospects of the non-alcoholic beverage. The essential strategies,
placement, risk factors and ethical dimensions is analyzed. The financial plan is provided to
examine the financial aspects that are connected with the future business potential of the
organization and the achievable revenue growth.

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Company Description
The company is a recent business but with significant presence in the beverage industry.
The organization is due to venture out in the market with its new non-alcoholic beverage. The
non-alcoholic beverage is a product that will fall under the category of a health drink. The
company has manufacturing facilities in only a few select locations around the country.
Normally, the organization has presence in a small number of markets. However, the markets are
large and the organization has been able to garner some popularity in a short time. The drink will
be made with natural ingredients since more people in the target market are inclined towards
healthier consumption habits. The target market of the product will be youngsters between the
age group of 18-35 years. The drink will provide the unique value of both a refreshment and a
health drink. The company is looking forward to sell the products in newer markets.

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Industry Analysis and Trends
The consumer trends in the recent years in the industry has been towards the consumption
of healthier products. There is recently a movement among the youth for consuming food and
beverages with lesser sugar content. The earlier generation of binge drinkers of both alcoholic
and non-alcoholic beverages have been replaced by the growing number of more sensible health
conscious consumers (da Silva Lopes, 2015). Keeping in line with the changing habits of the
consumers, the beverage companies have already started to sell healthier beverages. There are
large established businesses that have already started marketing their products. There is the wide
availability of diet beverages. Other important competitors are selling fruit based beverages.
There is wide acceptance of the newer healthier products among the public. The revenue growth
of the healthier beverages and substitutes are witnessing steady progress. The global market for
health beverages are expected to become worth more than 93.5 Billion US Dollars (Markets,
2019).

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Strategic Position & Risk Assessment
The strategic position for the beverage will be based on both cost differentiation and
product differentiation. The beverage will tend to provide a unique flavor and taste to the
customers than the already available health beverages in the market. The cost of the beverage
will also be slightly lower than the already available non-alcoholic beverages in the market. The
various risks that can affect the products are the development of a similar substitute products,
consumers are also inclining more on fruit juice based products. The competitors are well aware
of the potential of newer non-alcoholic beverages in the market. The product can lose
significance is a large number of similar products enter the market.
Target Market
The target market for the concerned product in the report would be primarily including
people between the age of 12-30 years, who are health conscious and do not consume
irrationally. This is because of the fact that the people of this age group are mostly the people
who are interested in healthy beverages, while also being within the age group where social
stereotypes do not apply to them for consuming a fancy non-alcoholic beverage. The target
market for the product is chosen in accordance to the appeal of the product as well. A soft
beverage is highly unlikely to attract a consumer base consisting of people over the age of 30
(Amaldoss & He, 2017). Therefore, promotional events and advertisements should be designed
in a way that directly speaks to this segment of the population, and grabs their attention in
particular amongst all the viewers.

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Competition
Healthy beverages would be finding enormous competition in the market. This is because
of the existing number of players in the market, who are willing to respond to the market
dynamics in their market, anytime to stay competitive (Amine & Raizada, 2015). These can
include energy drinks like Gatorade, and Red Bull, and even other beverages such as PepsiCo
and Coca-Cola. The market for the soft drinks beverage is enormous and there are stratifications
in the market according to the market share of each brand, with each of those stratifications
having a fair number of brands (Haygood, 2016). This is why no matter at what level of business
the brand of the product operates in, the market would always be of high competition (Higgs et
al., 2017).
Marketing Plan and Sales Strategy
To overcome the competition in the market and successfully sell its products, the brand
must ensure that it comes up with a perfect sales strategy. Every brand needs to come up with a
USP in its advertising and marketing efforts to succeed in a competitive market. Therefore, the
marketing strategy which the brand should adopt, is an appeal to the target audience, with a
message that suggests the audiences to rather spend their money on health drinks and not on
unhealthy colas. The message should be, “Drink some health too”. The sales strategy would
include sales promotions like discounts and other methods of sales promotion in order to capture
the market share straight away. The marketing strategy coupled with the sales strategy would be
the perfect combination to overcome the competition in the market.

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Ethics and Social Responsibility Plan
The ethics and social responsibility would firstly include a good positioning in the market
such as the brand that does not do harm to the consumers’ health unlike most of the other drinks.
Social responsibility activities can include a save-water campaign to promote the recycling and
conservation of clean water, to give the enormous amount of water which the brand would be
using for the production of its products, back to the society.
It is a good way to promote the brand’s social ethics and responsibility, and would be an
effective CSR activity. This is because CSR activity of a brand asks for the reimbursement of the
resources which a brand consumes from the society, for the sustainable growth of the society in
which the brand operates in. Therefore, since the brand consumes water from the society more
than any other resource for the manufacture of tis products, an initiative to save water would be a
perfect activity for its CSR. People will be able to understand the fit between the CSR activity of
the brand and the kind of work which the brand does.
Saving water is highly beneficial to the society, and also to the world. Both the
availability and quality if drinking water are declining at a rapid rate throughout the world.
Hence, it is important to save water for the sustainable development of a society. It will be highly
beneficial to the society. Drinking water especially in the rural regions of the world have become
an issue due to the bad quality and shortages of it. On top of that, groundwater levels have been
declining as well over the last few decades. This makes water in some regions of the world
concentrated with harmful chemicals, which could be really harmful to the health of the people.
This initiative to save water would ensure that water is preserved in a way which does not let
drinking water levels to go down in particular areas of the world, and people would have
abundant safe drinking water.

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This would be highly beneficial to the people of the society due to the fact that they can
sacrifice the harmful drinking water which they seek normally, and get to drink pure drinking
water instead. This means that they would improve their health as a result since concentrated
groundwater can be dreadful for health. Therefore, the activity would clearly outline the health
benefits of the CSR plan. It would also portray the brand as a socially responsible one. The plan
could be implemented in a lot of ways.
First of all, it should be figured out which areas including the ones in which the brand
operates are affected by lack of water and drinking water, and which areas have water that is
concentrated with harmful chemicals. A full geographical survey should be conducted for the
purpose. The plan of the action should be based on the findings of the survey. Following that, the
activity will involve the analysis of the areas to figure out which are the areas they can cater to,
which areas they should cater to on humanitarian bases, and which areas they should cater to in
order to enhance their brand image and awareness. In this way, the brand will be selecting the
areas which will involve the CSR activities of the brand. Followed by this, the brand must
conduct a geographical study of these areas to identify the main root causes for the issues related
to water in these areas, and which ways would be the most appropriate in order to eliminate those
issues; for example, rainwater harvesting, ground water harvesting, digging wells or canals.
Having outlined each of the activities that are needed to be conducted in each of those areas.
Followed by that, the brand should be able to figure out the approximate population of the area in
order to identify the scale of operations which needs to happen in the area, in order to properly
cater to the societies affected by the issues.

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Finally, it should be noted that whatever approach the brand takes, builds the image and
reputation of the brand. This is in order to ensure that the brand does not invest in activities
which would not do any good to the brand reputation, nor to the society.

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Assignment 2
Marketing reason
The sole marketing reason for this marketing plan is to increase the market share of the
brand. This is because the marketing campaign itself has been designed in a way that does not
succumb to the competition of the market and is able to generate sales by stealing customers
from competitors. This is the only way in which the brand will be able to survive in the tough
competition.
A cause to support
The cause which the brand will be supporting is protecting the increasingly declining
health of the young generation in the modern world, by giving them a suitable and healthy
substitute for it because people are already aware what most of the soft beverages in the world do
to their health. They only need to be convinced that a healthy substitute of it exists. The brand
will like to partner with is Dirty Lemon
Structuring the campaign
The campaign will be promoted through social media, outdoor advertisement, and TV
ads, with collaboration with Dirty Lemon, as it is a perfect way to send a positive message.

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Conclusion
From the above discussion, it can be concluded that the market for soft beverages is full
of competition, which is why having an effective marketing strategy is of utmost help. The report
summarizes that the product will be positioned as a healthy alternative to the consumers, and will
be aimed at stealing consumers from competitors to increase its market share.

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References
Amaldoss, W., & He, C. (2017). Reference-Dependent Utility, Product Variety, and Price
Competition. Management Science, 64(9), 4302-4316.
Amine, L. S., & Raizada, D. (2015). Market Entry into the Newly Opened Indian Market: Recent
Experiences of US Companies in the Soft drinks Industry. In Proceedings of the 1995
Academy of Marketing Science (AMS) Annual Conference (pp. 287-292). Springer,
Cham.
Briggs, A. D., Mytton, O. T., Kehlbacher, A., Tiffin, R., Elhussein, A., Rayner, M., ... &
Scarborough, P. (2017). Health impact assessment of the UK soft drinks industry levy: a
comparative risk assessment modelling study. The Lancet Public Health, 2(1), e15-e22.
da Silva Lopes, T. (2015). A Systems View of Corporate Diversification: The Case of the Global
Alcoholic Beverages Industry. International Studies of Management &
Organization, 45(4), 342-358.
Haygood, D. M. (2016). Hard Sell or Soft Sell? The Advertising Philosophies and Professional
Relationship of Rosser Reeves and David Ogilvy. American Journalism, 33(2), 169-188.
Markets, R. (2019). Global $93.6 Bn Functional Drinks Market to 2019. Retrieved from
https://globenewswire.com/news-release/2018/11/01/1641462/0/en/Global-93-6-Bn-
Functional-Drinks-Market-to-2019.html