Describe the target market for your NAB business including a description of your target market’s key demographic elements. You should also mention the geographic, lifestyle, psychographic, purchasing pattern, and buying sensitivities of your proposed target market.
Include these in your target market description (for your non-alcoholic business):
1. Demographic Description (age and income range, gender, family size, education, occupation, etc.)
Example: A likely user for X product is a male between ages 25 and 34 who earns between $25,000 and $35,000 per year and has a four-year college degree.
2. Geographic Description: area where you would like to serve, density (urban, rural), nature of location (mall, business center, etc.), climate condition.
An example of geographic description would be: Atlanta area.
3. Lifestyle Description: where do your customer shop, what they do for leisure, what kind of clothes they were, cars they drive, etc.
4. Psychographic Description: socially responsible, trendsetter, fun-seeking, etc.
5. Purchasing pattern description: how they use the product, how many times they buy, where do they buy the product, how do they pay for it
6. Buying Sensitivities Description: What factors are important to the customer before they buy (price, quality, customer service. Packaging, etc.)
In this assignment, you will create a revised company description and mission statement based on the feedback you received in the Week 1 discussion. Then, you will conduct a SWOT (strength, weakness, opportunity, and threat) analysis for the type of beverage you have selected and for your company. As you work on the assignment, consider why you have chosen one type of non-alcoholic beverage over another and the reasons for that choice. As you complete your SWOT analysis, be sure to include external factors such as industry/market trends and competition, and internal factors such as your capabilities or abilities to reach certain market segments.
Write a paper in which you do the following:
Create your revised Non-Alcoholic beverage (NAB) company name and explain the names significance to you. Describe a NAB that you would produce and sell.
Develop your revised companys mission statement and provide a rationale for its components.
Hints: Use the Statement of Mission template on pages 7273 of the course textbook, Successful Business Plan, to aid your development.
Extract appropriate information from the NAB Company Portfolio, where applicable. You should fill in other required items in the template using your personal preferences.
Describe the trends in the non-alcoholic beverage industry, especially the specific type of beverage category you have chosen.
Hints: Research and outline beverage industry trends. Consider the size and growth rate of the industry overall and the specific beverage type you have chosen. Use the worksheet in the course text (p. 88 | Past and Future Growth of Your Industry) to help you project the future growth rate. Consider the use of industry associations and search engines to find reliable and recent data.
Choose one strategic position from the course text (pp. 142143) that you believe is the best strategic position for your company. Explain the approach you will use to implement this strategic position in order to distinguish your beverage from other non-alcoholic beverages.
Provide an overview of your companys distribution channels. Explain the manner in which your product will reach end users. Provide a rationale for your chosen method.
Hints: For example, will you sell your beverage in grocery stores, restaurants, or sports venues? If so, describe the types of resellers and distributors who will sell to resellers and fulfill their orders. If you are attempting to sell directly to consumers, for example, online via a monthly subscription, how will you manage warehousing/fulfillment/shipping?
Outline at least three types of risks (including any regulatory risks) that your business faces. Describe your companys plan to mitigate such risk.
Hints: You may refer to the types of risk listed in the course text (pp. 148149) as well as any risks not listed in the text. Regulation weighs more heavily on beverage and food businesses than many other types of companies, so be certain to consider any regulatory risks your type of beverage faces. For example, what kind of regulation and/or risks are you likely to face if you make health claims about your beverage?
Develop a SWOT analysis for your NAB company using the SWOT matrix worksheet in the course text (p. 153 | SWOT: Strengths/Weaknesses/Opportunities/Threats).
Hints: What are your companys likely strengths? Have you chosen a beverage segment that is growing and lacks an entrenched competitor? Are you in a niche market that has great potential? What are the strengths that you and other team members bring to your company? Do you or other team members have previous experience in the food and beverage industry?
Hints: What are your companys likely weaknesses? Is the competition in your industry segment entrenched? Is your own management team inexperienced? Will it be challenging to actually produce your product and maintain quality?
Hints: What are your companys opportunities? Does your segment have more demand than supply? Have larger corporations stopped serving smaller or niche markets that you could enter? Is a new market emerging because of demographics, immigration, and changing tastes?
Hints: What are your companys threats? Is there a clear market leader that will be hard and expensive to displace? Are downward-pricing pressures in the segment making profit margins slim? Are there little or no barriers to entry for new competitors? if you have a novel idea that succeeds, can the competition easily enter your market? If you have a global aspect to your company, do factors such as currency fluctuations, political instability, offshoring, or outsourcing pose threats?
Format your assignment according to these formatting requirements:
Cite the resources you have used to complete the exercise. Note: There is no minimum requirement for the number of resources used in the exercise.
The paper must be typed, double-spaced, using Times New Roman font (size 12), with 1-inch margins on all sides; references must follow APA or school-specific format. Check with your professor for any additional instructions.
Include a cover page containing the title of the assignment, the students name, the professors name, the course title, and the date. The cover page and the reference page are not included in the required page length.
The specific course learning outcome associated with this assignment is:
Develop a company overview and SWOT analysis that include trends, strategic positioning, distribution channels, and risks.