Running Head:T’S DELIGHT BEVERAGE COMPANY T’s Delight Beverage Company Student’s Name Institutional Affiliation 1 T’S DELIGHT BEVERAGE COMPANY 2 T’S DELIGHT BEVERAGE COMPANY Introduction My non-alcoholic beverage company is called T’s Delight Beverages. Research has shown that a typical human being uses an average of 11.5 flavors in a year. This company will be dedicated to providing non-alcoholic drinks to individuals that will come in different flavors such as orange, vanilla, lemon, strawberry and peach. The significance of this company is that it is dedicated to assist individuals quench their thirst in the healthiest way possible. Mission Statement and Rationale for its Components T’s Delight Beverage mission is to improve the health of individuals by encouraging healthy drinking by fostering a proper drinking culture contributing to social, economic and cultural development and through their products enhance the quality of life of the people of the United States and all the humanity.It is important to encourage people to indulge in proper drinking behavior. Use of alcoholic beverages has become very dangerous as alcoholic has been associated with negative health effects. T’s Delight is actually dedicated to substituting alcoholic beverages at some extent even if it will not do it fully. Trends in the non-alcoholic beverage Industry I have chosen to develop a company that will manufacture energy drinks beverages. The trends in the energy drinks are that nowadays individuals are moving towards healthy lifestyles and drinks that have side effects are not encouraged and they tend to perform poorly in the market once people learn and hid to their negative effects. Beverages like soda have been associated with too much sugar, others like coffee have been associated with lack of sleep. The energy drink that will be manufactured will be supplemented with nutrients mainly multi- T’S DELIGHT BEVERAGE COMPANY 3 vitamins that will definitely boost the health of the users. As mentioned earlier, today the market is keen on consuming products that improve their health and that’s exactly what T’s Delight beverage will offer. North America at the moment is the largest market for non-alcoholic beverage which actually gives us a head start on where to position and start our marketing from. Asia pacific is next and the consumption is deemed to increase because of the health awareness. The leaders in the market for this product include: Red Bull, Monster Drinks and Coca Cola and we intend to beat the leaders by insisting on health matters and healthy drinking. The final reason for choosing energy drinks is that the other beverages are too common and it will be take long to break even if the company had to manufacture them. Strategic Positioning of T’s Delight T’s Delight positioning will be its health supplements. The drink will be manufactured such that there will be no or minimal health related negative effects. The drink will be supplemented with multi-vitamins, taurine and salts essential to the body and glucose that is easily absorbed into the blood stream for energy production. The product will major on the sports personnel by insisting that it is the best clean energy giver drinks and it works in seconds. The use of glucose in the drink is very important as research has shown that it is easily oxidized in the body to produce energy and therefore it cannot be stored in the body and this reduces the chances of consumers having too much calories and instead they get the energy they require instantly after drinking the T’s Delight Energy Drink (Kim, & May, 2015). Company’s Distribution Channel T’S DELIGHT BEVERAGE COMPANY 4 The company’s distribution channel will be through an efficient supply chain management that will involve the use of wholesale, retail selling, franchising and direct selling to the customers. On wholesale, our product will be distributed in all leading stores at a wholesale price of $1 per bottle and they will retail at $1.5 per bottle. On franchising, interested individuals will be given a kiosk and refrigerators positioned strategically at designated areas and the profits they make will be shared between them and the company. Types of Risks in the Business and how to mitigate the risks One of the major risks is competition from the already established companies. T’s Delight will face stiff competition from Red Bull, Monster Drinks and Coca Cola and this is critical because it can lead to the company’s shut down. To mitigate this risks, the company will have to carry out a thorough marketing and insist on healthy drinking to makes our product unique from others. The second risk that T’s Delight might face is the increased environmental and occupational safety risks. Because of many irregularities in the Food and Beverage Industry OSHA are reluctant to register new companies. To mitigate this risk, will send samples to the OSHA lab for further analysis and because I am sure of our product superiority, OSHA will register the company and the product. The final risk could be the change in consumer preferences and product development. Sometime consumers can decide to go for a competitor goods and this means that our product will not be selling. To avoid this risk customers satisfaction will be our number one priority and also will be keen on taking feedback from the consumers in order to make products that meet the desires of the consumers. T’S DELIGHT BEVERAGE COMPANY 5 SWOT Analysis Strengths Weaknesses Opportunities Threats T’s Delight is unique Lack of patent The market through Major threat is the because its products protection. health awareness are competition from are health related. Weak brand because in need of a healthy other energy drink It has a favorable the company is new. cold beverage. companies. consumer perception. High cost structure. This makes T’s Red Bull, Monster Ability to negotiate Delight a good Drink and Coca Cola on bulk purchases substitute for soda have a stronger brand and benefit from and other related than T’s Delight. economies of scale. commodities. The drinks can be used by sportspeople. Addressing the Addressing the weaknesses Threats High Margins to With effective provide flexibility. marketing the T’s Strengthening of the Delight brand will be brand through strong and will be consumer awareness able to keep up with T’S DELIGHT BEVERAGE COMPANY 6 and advertisement. References the competition. T’S DELIGHT BEVERAGE COMPANY 7 Non-Alcoholic Beverage Company Portfolio. Retrieved from, http://www.bevindustry.com/articles/88184-bai-brands-disrupts-cpg-space-with-low-calorieallnatural-solutions on November 1, 2015. Kim, C., & May, L., (2015). Energy Drink Composition. Fresh Patents and technology. Retrieved from, http://www.freshpatents.com/-dt20090723ptan20090186127.php on November 1, 2015. Non-Alcoholic Drinks Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2014 – 2020. Retrieved from, http://www.transparencymarketresearch.com/non-alcoholic-drinks-market.html on November 1, 2015.