Full of Life Company Description
Coming up with a name for a company is one of the most critical components of a successful business plan; the name has to not only attract customers but also be representative of the entire business itself and for what it stands. The business plan included in this paper relates to a non-alcoholic beverage company.
It is proposed to call the company “Full of Life.” This name instantly shows the customer that the brand is oriented on providing high-quality drinks that will not take their energy away and will not be harmful to their health (e.g. like Pepsi or Coca Cola). On the contrary, “Full of Life” is a brand name that represents a response of business to care for their customers’ health and provide them with a high-quality product.
Moreover, the name was chosen to fit the criteria of a successful brand name, which include simplicity, familiar sound, distinction, and vivid imagery (Hague, 2016). It is noteworthy to mention that Full of Life will position itself as a “green” brand that focuses on spreading awareness of the environmental issues and engaging the public into a conversation about the harmful effects of unhealthy beverages as well as the adverse impact the food and beverage industry has on the surroundings.
Mission Statement and Rationale
The mission statement for “Full of Life” will be “Creating the best product that will differ from any other on the market for bringing you energy, inspiration, and a moment to refresh your day.” The mission statement was chosen for communicating to customers that the company has the best intentions in mind when it comes to providing a product to consumers. The product will be different from any others on the market because of the unique combination of high-quality ingredients and reasonable pricing.
Moreover, it is important to mention that the mission statement does not place a focus on the “energy” component since the product is not an energy drink but a blend of locally sourced ingredients. The notion of energy will also be incorporated into the vision of the company is a somewhat different meaning – Full of Life will implement its Social Responsibility efforts to discuss the topics of the natural resource use as well as the incorporation of renewable energy for the production of refreshing beverages.
Strategic Management of Full of Life
Strategic management refers to the operation of an organization through using all available resources for meeting the set goals and objectives; it involves setting aims, analyzing the competition, evaluating the internal processes within an organization, exploring possible strategies and making sure that the management of an organization puts in all efforts necessary for successful operation. When developing the business plan for Full of Life, the mixed approach to strategic management will be implemented: both prescriptive and descriptive ways to develop a brand strategy will be used.
The purpose of the business plan is to develop a strategy to reach a large customer base that will be interested in purchasing non-alcoholic beverages that do not contain harmful ingredients. The potential for the company’s growth is vast, with more and more customers realizing the need to choose healthier beverage options over sugar-packed drinks that only harm them. Another important point to mention is that Full of Life will include the message of environmental sustainability into the strategic management of the company. The choice of packaging, ingredients, marketing, and public outreach efforts will align with the awareness of the company about the adverse impact of manufacturing on the environment.
Industry Analysis and Trends
The non-alcoholic beverage industry is among the largest and the most dynamic industries, with new trends appearing and old ones disappearing. With products being launched every day, it is imperative for a NAB business to keep up with trends and convince customers that their beverages are the best. In 2017, the NAB industry was expected to see an increase of beverages infused with plant-based proteins, sparkling water, non-alcoholic adult drinks, cold brew coffee, and cold brew tea (Kazonaite, 2016).
Non-alcoholic drinks are available in the market in a variety of forms like fruit juices, carbonated beverages, ready-to-drink teas and coffees, bottled mineral water, energy drinks, and many other variations. The concern of the global public with their health has led many consumers to review their attitudes towards alcoholic drinks and switch to non-alcoholic ones. Therefore, drinks made from natural ingredients present a great opportunity. This type of non-alcoholic beverage was chosen for the following three reasons:
- Healthy drinks were gaining momentum in 2017;
- The product will be suitable for both kids and adults;
- Opportunities for expanding the product line are endless.
The NAB industry is continually expanding, with healthy drinks becoming a priority for many consumers, as evidenced by the trends in the industry. Leading beverage manufacturers are currently working on new product launches to cater to the changing needs of consumers that are concerned with their health. The market size of NABs used to be approximately $1545 billion in 2015 and is expected to rise to $2026 billion in 2022, growing by 4.3% each year (“Global non-alcoholic beverage market,” 2017).
As to market dynamics, the NAB market is largely influenced by the changing lifestyle and preferences of the majority of consumers, as well as the demand associated with the growing population and the rise of disposable income. Awareness of customers regarding the adverse effect of artificially sweetened drinks is steadily growing, while governmental regulations for the use of potentially harmful ingredients in drinks drastically constrain the growth of the market.
For this reason, the global industry of non-alcoholic beverages has open opportunities for brands that produce “alternative” and innovative products that contain zero or low amounts of artificial sweeteners. The NAB market can be loosely divided into product types, distributions, and sales channels, as well as geography. Regarding product types, the market can be differentiated into carbonated and non-carbonated drinks. While carbonated beverages contain cola-like beverages that contain carbonated water, non-carbonated beverages include juices, tea, coffee, energy drinks, bottled water, etc. By types of sales and distribution channels, the market of NAB drinks can be differentiated into hypermarket, supermarket, specialty store, convenience store, department store, and online purchase.
Strategic Position and Risk Assessment
A company’s strategic positioning refers to the efforts of the management to create a certain kind of value as well as how that value could be created differently in comparison to the rivals. In the case of Full of Life beverages, benefit positioning is the most appropriate choice. The company will focus on communicating the unique benefits of the Full of Life drinks by highlighting the most powerful attributes that consumers value. Among such benefits are high quality, health benefits, ethical sourcing, and the home-made approach. While the majority of NAB companies focus on price positioning to stand out among competitors, Full of Life will take a unique approach and will place emphasis on the benefits of its drinks.
Risks and Their Management
The three types of risks Full of Life may face when entering the market and expanding the operations are associated with:
- Competition;
- Business plans and management strategies;
- Supply chains.
To address risks related to competition, Full of Life will focus on its brand positioning as a health-oriented company that puts customers (rather than competitors) first. To address risks associated with management and business plans, Full of Life will create a strategy to involve skilled staff, managers, and investors to develop an action plan for eliminating any issues. As to the mitigation of supply chain risks, the company will have to collaborate with only responsible parties.
SWOT Analysis
SWOT analysis is a technique businesses use for understanding their strengths, weaknesses, and identifying open opportunities and threats. The SWOT analysis for the Full of Life non-alcoholic beverages is presented in the matrix worksheet below:
Overall, it is expected that Full of Life non-alcoholic beverages will position itself as a consumer-oriented brand that produces high-quality products from natural ingredients. Starting as a small family brand, the company has an opportunity to capture new audiences and attract customers that are concerned with their health. Moreover, the ideas of environmental sustainability will be high on the agenda for the brand, so the company will invest time, efforts, and funds into educating the public and promoting healthy beverages. On the other hand, competition in the sector is rising, so it is imperative for Full of Life to develop a strategy to address the identified weaknesses and threats.
Target Market
Fry (2015) found that the market of non-alcoholic drinks was dominated by carbonated soft drinks ($70.6 billion); however, as some brands of fizzy drinks decline, the emerging “better-for-you” segments face tremendous opportunities to take a significant share of the market. Despite the skepticism around healthy drinks, the market is overflowing with opportunities (Moloughney, 2016), which points to the need for developing a high-quality product and offering it to consumers.
The market for health and wellness beverages and foods is driven by the growing recognition among scientists, consumers, and the government that diet and lifestyle play exceptional roles in addressing an extensive range of health conditions. Importantly, diseases associated with unhealthy consumption habits such as heart disease, stroke, some cancer types, diabetes, and high blood pressure are among the leading causes of mortality in the US. Moreover, the risk of developing such diseases is higher as the population ages, which points to the need to prompt this consumer segment to seek innovative and alternative products that will not hurt their health.
The key facts that need to be taken into consideration when defining the target market for Full of Life beverages are the following:
- Approximately two-thirds of American grocery shoppers have bought a beverage or a food product in order to address one or more of the many wellness and health issues. In particular, concerns associated with the management of cholesterol and poor digestion are high on the agenda of the health-aware population.
- With regards to many foods and drinks categories, “targeted health and wellness,” consumers show increased willingness to pay more for high-quality products that are better for their health.
- The reputation of ingredients used in foods and beverages is a highly significant factor to which consumers pay attention when making purchase decisions. Therefore, there is a need for health-oriented food and beverage brands to communicate the benefits of ingredients they use in a consistent, frequent, and clear manner.
- Health providers are the key sources of information for many shoppers with regards to nutrients found in food and beverages. Recommendations made by healthcare professionals are essential for consumers with specific health concerns.
- Consumers show an increased interest in conducting research about the positive and negative effects of certain ingredients in products of consumption. Websites concerned with health, nutrition, wellness, and exercising are all valuable resources for modern consumers; this also presents an opportunity for Full of Life to advertise beverages on such platforms.
- Generally, shoppers that take care of their health tend to visit a larger variety of grocery stores than the “average” consumer.
At the forefront of emerging opportunities for selling healthy drinks, there are three health-conscious demographics at which the company can target its product. These three customer segments include millennials, baby boomers, and overall health-conscious consumers (which make in total 64% of the customer demographic in the nearest areas), as found in the press release of the Packaged Facts (2014) division of MarketResearch.com. 83% of millennials see their wellness and physical health as essential components of their daily life (Goldman Sachs, 2016), which makes them highly likely to purchase Full of Life beverages that do not contain harmful ingredients. Similar to millennials, baby boomers are also exceptionally aware of their health.
Competition
The competition in the global market of non-alcoholic beverages is reported to be severe mostly in developed countries of regions such as Europe and North America. Markets in these regions tend to exhibit slow rates of growth and steady demand for innovative non-alcoholic beverages. Opportunities for growth tend to be less promising in developing regions such as the Asia-Pacific (“Global non-alcoholic beverage market,” 2017).
It is noteworthy that India and China are the two fastest growing markets for NABs since the vast population of these countries has had a positive impact on encouraging the demand. With multiple new products being launched each month and large marketing campaigns filling the media, smaller level players are challenged by the giant corporations to capture the public’s attention. For this reason, smart business strategies are high on the agenda for brands such as Full of Life.
The overall NAB marketplace is dominated by a handful of top players such as Coca-Cola Company, Danone, Nestle S.A., PepsiCo Inc., San Benedetto, and Dr. Pepper Snapple Group Inc. (“Global non-alcoholic beverage market,” 2017).
As to the market competition for Full of Life beverages, it is important to investigate brands that produce healthy beverages and market them to the similar demographic. Among the popular brands that are similar to the ideology of Full of Life, Feel Good, Infinite Health, Viva, Naked, Vitamin Water, Nomi, Kevita, and others are currently dominating the market of healthy beverages that do not include water.
Overall, the market of healthy beverages is considered a niche market within the non-alcoholic beverage sector, which is generally dominated by soft drinks such as Pepsi and Coke. In order to differentiate Full of Life beverages from competition, it is important to determine the ways in which the product stands out regarding its benefits, design, price, quality, and customer service. As to the benefits, Full of Life beverages do not contain any harmful ingredients such as preservatives and thus are beneficial for consumers’ health.
Regarding the design, Full of Live beverage bottles are made of sustainable materials such as recycled glass or cardboard, which contributes to the lower price compared to the competitors that use plastic for packaging. The quality of Full of Life beverages is the focus of the differentiation strategy because the drinks are made from locally sourced ingredients with a unique recipe developed by a small family business. Lastly, customer service is especially important for differentiating Full of Life drinks from competitors – the company will provide the round-the-clock customer support for complaints, feedback, and recommendations in order to reduce the gap between the customer and the company.
Marketing Plan & Sales Strategy
First, it is important to understand the definition of marketing vehicles and how they could help Full of Life succeed on the market. A marketing vehicle is a tool used for delivering an advertisement to the target audience (Lake, 2017). Marketing vehicles can be in print (e.g. newspapers, magazines) and digital (e.g. Google AdWords) forms. To cater to baby boomers and millennials at the same time, Full of Life should use both digital and print vehicles for conveying the message of a healthy lifestyle to all generations. The second step is the identification of specific marketing tactics to promote the brand (“The strategic marketing process: A complete guide,” 2015).
Among the key tactics is the establishment of the social media presence (a website, Facebook, Twitter, and Instagram accounts). Direct interactions with potential customers are the second tactic for brand promotion, which includes offering samples in grocery stores such as Whole Foods and Trader Joe’s. After tasting beverage samples, customers will be encouraged to give their feedback on the quality and taste of their drinks.
In order to arrange such tastings for consumers, Full of Life should collaborate with the resellers (grocery stores) of both general and health-oriented specialization. Reaching resellers will be possible with the help of online communication since the majority of modern grocery stores have a strong online presence. As to the direct sales and promotion of Full of Life beverages, in the first two months of the product launching, the company will have a hundred bottles of the beverage sent to random customers in exchange for reviews and feedback (Muldoon, 2016). Exposure is the key component of promoting Full of Life beverages, and the example of Amazon shows that providing consumers with products to get an honest review can potentially bring successful results.
As to brand exposure, social media presents an opportunity for the company to reach health-oriented “influencers” to collaborate with them for promoting Full of Life drinks. Since a large target segment of potential consumers includes millennials that follow bloggers on different social media platforms, reaching people with a large following is a smart strategy that not many beverage producers use.
Health-oriented “influencers” may include fitness trainers that post workout videos on YouTube, vegan and non-vegan bloggers that post healthy recipes of meals and drinks on their Instagram, dieticians with a large following, and other creators that put out health-positive content. Such an advertisement tool will allow Full of Life to target its products with the help of the vision of different people and how they choose to communicate the message of the brand. At the end of each campaign of working with influencers, it is crucial for the company to measure the outcomes to determine whether the audience received the advertisement positively.
Because Full of Life is a “green brand,” a lot of the marketing efforts will be associated with engaging the public in the conversation about the environment and what the company does to reduce the negative impact of the beverages’ production.
Full of Life will take part or organize charity and other social events associated with the issues of environmental sustainability and will promote the brand through communicating its values and ideas to the public. Such activities a more likely to increase awareness of the brand and position Full of Life beverages as products that spread a positive message of the environmentalist identity and healthy lifestyle choices.
Regarding the 5Fs (function, finances, freedom, feelings, and future), Full of Life drinks will include beneficial ingredients such as fresh spring water and locally sourced fruit that will act as refreshers during the day (function), will cost less compared to competitors (finances); the product will be available both online and in physical stores (freedom) to allow consumers embrace a healthy lifestyle (feelings). Full of Life is looking to stay in business and expand for promoting the message of positivity and health (future).
Marketing Plan Budget
The spreadsheet presented below includes the year-long budget for Full of Life beverages divided by month. What is important to mention is that December will be the focus of the marketing efforts for the company due to holidays, which means more families are getting together to watch TV and go shopping. July, October, and December will be important for marketing the product to customers directly (during tastings and sample sharing) since these months are associated with holidays as well.
Ethics and Social Responsibility Plan
First, it is important to mention that ethics and social responsibility are essential components of any business endeavor; moreover, they influence companies’ organizational identities. In the area of economic marketplaces, companies are responsible for the ethical and socially responsible operation. On the other hand, ethics are not included in the plan for achieving specific goals; rather, it is a component of the logic that a company uses to take action.
In the case of Full of Life, a company that operates on the principles of using locally sourced ingredients, collaborating with small farmers, and producing beverages that only have a positive influence on customers’ wellbeing, ethics, and social responsibility play even a larger role. The ethics and social responsibility plan for Full of Life will incorporate such strategies as voluntary hazard elimination, community development, philanthropy, social education and awareness, as well as social education and awareness regarding environment issues. Regarding the public, the plan will include strategies such as creating jobs, fair and honest treatment of employees, and nondiscriminatory practices.
Voluntary Hazard Elimination
The strategy of voluntary hazard elimination implies businesses taking action to reduce and eliminate practices of manufacturing that may have an adverse impact on the public regardless of whether or not such practices are considered harmful by law. Since Full of Life can be regarded as a “greener” business compared to others (e.g., the packaging is made from the recycled and recyclable material, the beverage does not contain any harmful ingredients, etc.), the issue of waste disposal is not as high on the agenda.
However, the problem of energy use remains. It is expected that Full of Life will use renewable energy sources such as solar energy for production. Such choice aligns with the values of the company to remain environmentally sustainable while it also relieves the burden of using natural resources that cannot be renewed.
Community Development
The operation of Full of Life will also be associated with collaborating with appropriate institutions to create a better local environment for work and life. Such institutions can include local environmental organizations, worker cooperatives, educational institutions, and other local businesses that share the same values. Full of Life will also participate in educating the public on the importance of a healthy lifestyle, environmental sustainability, and ethical sourcing.
Philanthropy
This strategy is associated with making monetary contributions to help local educational, charitable, health- and work-related organizations for assisting the under-served communities in the area. The beginning stages of the company’s development are likely not to allow make generous monetary donations to help those in need. For this reason, Full of Life may provide education for the public and create jobs for the unemployed.
Social Education and Awareness
The strategy of social education and awareness implies the implementation of use positioning for exerting pressure on other business to adopt socially responsible practices. Full of Life is considered a “green” company that has knowledge of the most useful and sustainable practices a business could use. For example, Full of Life may use social media for demonstrating the sustainable practices the company uses for exposing companies with potentially harmful activities. This will encourage the public to engage in a dialogue for the development of social community awareness. Consequently, social community awareness is expected to have a positive influence on reaching social education and awareness goals.
Creating Jobs
According to Hoffman (2013), employment should be considered a pillar of Corporate Social Responsibility since lack of jobs for the community have a devastating economic effect. For this reason, as the operations of Full of Life grow, the company will invest in creating jobs for the local community to address the issue of unemployment.
Fair and Honest Treatment of Employees
For ensuring smooth performance in the workplace and making employees productive and satisfied, Full of Life will implement fair and honest treatment strategies. Fairness in the workplace implies developing trust from employees for them to be more effective when working towards individual or group goals. Fairness practices may include “the golden rule” (treating everyone as one would like to be treated), not choosing favorite employees, not taking advantage, modeling appropriate rules and behaviors, changing the existing rules to ensure fair treatment, and being honest. The management of Full of Life will be instructed to tell employees how to do things and why they should be done, why a specific procedure should be put into place, and so on. Being honest with workers equals to treating them fairly and respectfully.
As to the more specific actions targeted at making the workplace fair, the management at Full of Life is expected to establish common rules for all workers (e.g., criteria for performance reviews, bonuses, promotions, raises, disciplinary action, and qualification for various benefits). Moreover, it is important to introduce equal footing, which means that employees with similar skills and abilities should be treated uniformly.
Other beneficial practice for ensuring fair treatment of employees will include giving workers opportunities to express their opinions, sharing new ideas and grievances, and appeal decisions or actions they see as unfair. Lastly, giving credit to the smart ideas of employees is another fair practice that Full of Life is expected to implement.
Non-Discriminatory Practices
As an ethical employer, Full of Life will introduce non-discriminatory practices to make sure that workers of all genders, cultural backgrounds, religions, races, and physical capabilities are included in the workplace and are valued for their skills and potential rather than any other characteristics.
Full of Life will be devoted to basing employment relationships on the principles of fairness and equal opportunities without discriminating with regards to all aspects of the employment relationships, such as recruitment and hiring, compensation, work conditions and terms of employment, training, promotion, discipline, and others (EBRD, n.d.). It is also important to mention that the management will pay attention to the discriminatory moods within relationships between employees to make sure that no discrimination is accepted or tolerated.
Following the topic of discriminatory practices, Full of Life will make sure to increase the diversity of the work force. While there is no perfect practice to do so without unintentionally developing “reverse discrimination,” it is crucial for the management of the company to focus on recruiting employees that are skillful regardless of their diverse background.
Following Jurisdiction Laws and the Impact of Full of Life Beverages
As to the compliance of Full of Life with the laws of every jurisdiction it operates, it is expected that a business supplying food or drinks obtains the appropriate health permits and undergoes initial and periodic inspections. Furthermore, it is recommended to pay attention to land usage laws regardless of the business type to make sure that the production plant is not affecting the local area.
While many beverage products can have an adverse effect on the health of both children and adults, the message that Full of Life beverages spread is opposite. As mentioned previously, Full of Life focuses on producing beverages that are made from high-quality local ingredients through cooperating with farmers and producers. The beverages contain minimum amounts of sugar and other substances in order to enhance the natural flavors of fruit and vegetables.
Furthermore, the range of the beverages available for purchase will depend on the selection of seasonal products; for example, apple or pumpkin drinks will be sold during the fall season while peach or berry drinks will be sold during the summer months. This allows the company to have more variety in the range of beverages and prove to the customers that locally sourced ingredients make the best drinks. Therefore, it is expected that the impact of Full of Life beverages will be predominantly positive due to smart brand positioning and attention to environmental sustainability, which many food or beverage brands tend to overlook.
It is noteworthy that no potential negative effects of Full of Life beverages have been identified yet. The company promotes a healthy lifestyle to the public and encourages other beverage brands to join the “green” movement and pay more attention to what they produce and what impact the production has on the environment. The usage of energy resources for manufacturing could be considered an adverse effect; however, the next investment into solar energy batteries will be a solution to this issue.
Concluding Remarks
The business plan presented in this paper focused on exploring vast opportunities for a non-alcoholic beverage brand that uses natural ingredients that have a positive influence on consumers’ health. It has been identified that the possibilities for Full of Life beverages are extensive, especially with the rising awareness of many shoppers to choose healthier options of consumable products in grocery stores.
Millennials and baby boomers have shown to be the most prospective target demographics for the company: while baby boomers opt for healthy beverages due to rising health concerns, millennials tend to follow healthy lifestyle trends, especially when they are heavily advertised in the media. Both traditional and alternative marketing efforts will be used to promote the beverages: TV and magazine ads will predominantly target the older generation of the audience while social media ads and collaborations with influencers will be aimed at millennials.
Lastly, the ethics and social responsibility efforts outlined in the business plan will be very prominent for Full of Life – the company will invest into spreading the message of health positivity and environmental sustainability while creating jobs for locals and educating the public. It is expected that the brand will continue expanding its product line, reach broader audiences, and hire professionals to extend the business.
References
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