Strategic Management Report: Non-Alcoholic Beverages Company Analysis

This report provides a strategic management analysis for a recently established non-alcoholic beverages company. It begins with an abstract summarizing the key areas covered, including the company's mission and strategies. The report identifies the target market, focusing on middle-class consumers, students, and the Hispanic community. It examines market competition from industry giants like Coca-Cola and Pepsi, proposing branding and advertising strategies to overcome challenges. The company's strengths, weaknesses, opportunities, and threats (SWOT) are analyzed, followed by a discussion of the company's message emphasizing healthy, low-sugar drinks. Finally, the report explores effective marketing vehicles, particularly online marketing and grocery store sales. The conclusion stresses the importance of local market assessment, understanding demographics, and leveraging marketing strategies for sustainable growth.

Running head: STRATEGIC MANAGEMENT
Strategic Management
Name of the Student
Name of the University
Author Note

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Abstract
The following paper is about the assessing the strategies for the newly opened organization that
works in the soft drinks and beverage industry. The mission of the organization has been
described and the ways by which they can achieve them have been discussed as well. The
probable target market for the company has been addressed in this regard. The valuable
information about the soft drinks and Beverage Company has been supplied in the paper also.
The strategies that they can undertake and the market vehicles they can apply are suggested. The
market competition and the probable ways to overcome the competition are described in this
context.
Keywords
Non alcoholic beverages, Soft drink and beverage, market competition, target market,
market vehicles.

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Table of Contents
Introduction......................................................................................................................................3
Target market of the company.........................................................................................................3
2. Market competition......................................................................................................................4
3. Company’s message....................................................................................................................6
4. Marketing vehicles.......................................................................................................................7
Conclusion.......................................................................................................................................7
References........................................................................................................................................8

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Introduction
The following paper is about determining the marketing plan and a sales strategy for the
non alcoholic beverages company who have started their business very recently just six months
back. It is very important to develop a proper marketing strategy so that they can compete with
their local competitors in the local market. As they are the newcomers in the beverages industry
they have to work within the local market before they expand in the bigger markets. They should
not try to target the bigger companies as the threats to their survival but they should try to
capture the local market before their expansion. They should be looking to work within the
radius of at least sixty miles from where their organization is located.
Target market of the company
The target market for the company depends on the people who will be buying their
products. For that, the company must assess the local market and the people who live nearby.
Many factors have to be kept in mind in order to assess the local market (Armstrong et al., 2015).
The factors are the education level, income, gender, ethnic groups and many other factors. The
non alcoholic beverages are mainly the buying products of middle class. This is only because the
middle class people are rising in the society. A certain income rate among them has worked as
the driver for the growth of the non-alcoholic beverage industry (Ni Mhurchu et al., 2013). The
market is emerging so there are enough scopes to have a good run of business. A very
encouraging data for the this industry is that the market intelligence Euromonitor International
has said that the total number of the middle class people will rise a lot from the present time.
The education level of the people who can be the targets of the company can be at least
graduates. In some cases, the people with a lower education can also be the target audience of the

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company. According to the society standards, the middle class families could be the main target
audiences of the company as the pricing of the bottles of the beverages and the drinks is not
within the buying capacity of the people with lower incomes. The age group is a crucial factor as
the students will be the target people. This is because they are attracted towards these things as
they come to know about it from their friends. The parents of those students can also be potential
target audiences for the company (Kemp, 2013).
As per the Hispanic groups are concerned, it is a wide community in the United States
and include people of different origin countries like Cuba, Mexico, Puerto Rico, South or Central
America (Kaplan et al., 2014). Other people from other origins like Spanish are also considered
under the Hispanic community. The statistics reveal that Hispanics will be increase and their
buying power will be up to at least $ 1.5 trillion by 2015. This will be a huge rise from the
amount of 2010. The people who were born between the years 1981 and 1986 are considered to
be ‘millenials’ and they represent a 24% of the US population (Ng, Lyons & Schweitzer, 2012).
This is an extremely encouraging fact because they are more aware about the latest technologies
and the use social media. They have a better understanding of the product awareness. The teen
population in the country can also be counted as one of the main demographics for the industry.
2. Market competition
a) It is a known and notable fact that the soft-drink industry has been dominated by Coke
and Pepsi for ages now. The market competition is very high for the company as the rise and
growth of this industry is fast and smooth in assessing the entire market (Cheng, Man & Yi,
2013). The need for a proper marketing can increase the number of customers in a big way. The

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big names in the industry like Monster Beverage Corporation and Dr. Pepper Snapple Group
have focused on maintain proper marketing strategies for a long time.
The most important branding strategies to have a firm hold on the industry needs to put
much stress on the advertising and branding of the products (Baker, 2014). The competitors for
this company are mainly Coca Cola and Pepsi. They have dominated the market for so long as
they have many brands under their belt. Other companies that can be considered as competitors
for them are Sprite, Fanta, Tropicana, Red Bull, Diet Coke, Nescafe and some others. They have
to overcome the challenges posed by their competitors.
b) The strategy that has to be used in this segment is to make a proper branding of the products
and then advertising it (Parente & Strausbaugh-Hutchinson, 2014). The main qualities of the
product will have to be upheld by the company. The sugar percentage, the calcium and energy
nutrients’ percentage have to be shown in the packed bottles so that the customers feel the urge
to buy them. Before that, the products should be advertised in the local newspapers, television
channels. They can open a Face book community for advertising purposes as well. They have to
create new market categories keeping in mind the needs for their target audiences and key
demographics.
c) The company must not aim to compete against the companies like Pepsi and Coca Cola
because they would not be able to match with them (Kleiman, Ng & Popkin, 2012). They
certainly have to depend on their own demographic audience and their niche markets. As the
industry does not have such threats from the new market entrants, they must focus on
capitalizing on their own strategies by branding their products and advertising them.
Strengths

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 They have a good range of availability of clients.
 Their distribution channel is quite stable (Grant, 2016).
 Their products are superior in quality than niche market competitors.
Weaknesses
 Their financial strength is not so much depending on the country’s total economy.
 The authority or the management is not enough experienced (Bossert, 2013).
 The equipments they use are not top class at all.
Opportunities
 They can aim to produce health drinks among all the target audience people. This will
help them to circulate their products in a wider circle.
 After a good run of business in the local market, they can enter the global market as well.
Threats
 The market competition is very high.
 They are not using the latest technology for their production yet.
3. Company’s message
The company wants to give the message to the potential target markets of theirs is to
provide the customers and other stakeholders a proper healthy drink that they can take in after or
before exercise. This product is made with a low sugar quantity and ensures the good health of
the customers. They are ready to offer suitable business environment to its stakeholders and
customers (Craig & Campbell, 2012).

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4. Marketing vehicles
There are many options for choosing proper marketing vehicles for the company. One of
the most important vehicles that can be very effective for the company is the online marketing
mode (Erdoğmuş & Cicek, 2012). They can advertise their products through various social
media platforms and online marketing apps. They can also sell their products in grocery stores
after a good branding of the product. The sales of the product should be done in such a way that
the products should get a good promotion. The sellers and resellers need to provide real and
authentic product information to the customers in real time. In these ways, the health drink
provided by NAB Company will get more sales percentage and overcome the challenges (Ingram
et al., 2012).
Conclusion
The paper can be concluded by saying that NAB Company has to assess the real time
local market to grow a good reputation. This will improve their sales and give them a better
position in the market. The need to focus on the demographics of the region they will be doing
their business is immense. It is indeed useful to think about the useful market strategies after
understanding the market competition in the industry. They can use marketing vehicles so that
they get the competitive advantage over their rivals. They have to strengthen their weaknesses
and utilize their opportunities for a sustainable future.

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References
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Cheng, P., Man, P., & Yi, C. H. (2013). The impact of product market competition on earnings
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