Introduction
The Eden Land Company has developed a new business idea. It plans to combine water with slices of fruits and serve them to customers. The water will be packed in uniquely designed and eco-friendly bottles. This paper provides a market research and feasibility study report for the Healthy Drink.
“SMART” objectives
Eden Land has set objectives and their feasibility tests. For instance, one of its objectives is to satisfy the needs of customers within the first week after the product is introduced into the market by meeting their needs. The Customers tastes differ in many ways, and the company understands that creativity is one of the ways it can use to influence the purchase of its products (Burns 111).
The company has noted that many young people suffer from blood pressure and water retention problems. It has developed a remedy to this problem by offering the Healthy Drink product. This objective will be measured by the outcomes, testimonies, and reactions of customers to the product (Burns 221).
Healthy Drink (Product)
The Eden Land Company will offer the Healthy Drink product to its customers. The Healthy Drink is a type of water with minimum quantities of sodium and is ideal for people suffering from high blood pressure. It is also ideal for people suffering from water retention.
The Healthy Drink product is packed in unique bottles different from those of their competitors in order for customers to easily recognize them in the market. The company will also ensure that the Healthy Drink stands out consistently by ensuring that it is treated in accordance with the required specifications. It will provide customers with a high quality Healthy Drink to influence post-purchase of the product, and hence maximize on sales, profits, and revenues.
Market Research
The market for the Healthy Drink product is readily available. Market research plays a significant role in successful business development (Carson 52). The product is targeted at the youths (generation Y) with water retention problems and high blood pressure.
To avoid these problems, they should take the Healthy Drink product, which is a type of water with minimum sodium quantities. The company will add slices of fruits to this water to make it appealing to the target audience. The demand for pure healthy water is on the increase. This is an added advantage for the Eden Land Company because it meets the customers’ specifications.
Pricing and Promotion
The Eden Land Company will set affordable prices for its Healthy Drink mineral water immediately after launching the product. There is stiff competition from other products such as Masafi, Panna, Aquafina and Pellegrik among others. The company will ensure that it employs the price leadership strategy to gain competitive advantage over its competitors (Marn, Eric & Craig 79).
The company also intends to integrate the most efficient promotional campaigns for its product before and after the launch of the new product. Considering that the target audience are echo boomers who spend most of their time in the browsing the internet, the company will employ social media marketing strategies (Strydom 140).
Operations Plan /Organization Chart
Eden Land will develop departments, which include research and development, marketing, customer service, sales and human resource department. Each of these departments will have 20 employees and will be headed by a manager. The manager will be responsible in staffing, planning and controlling operations in their respective departments.
The company will use raw materials such as disinfectants (chlorine and chloramine), organic polymers, acidity neutralizers (lime or caustic soda), and coagulants (sodium). The company will design a supply chain network to facilitate efficient supply of Healthy Drink mineral water to the target audience in Abu Dhiabi.
It will open stores near the customers’ reach and use mobile vehicles to supply the product. The company will need refrigerators in the stores and vehicles to store the product. The company also intends to employ the NICHE strategy of marketing since it is targeting the echo boomers who are active on social media. The company expects to break into the Middle East market within two years after launching the Healthy Drink product.
Eden Land Company Organization chart
Financial Projections/Income Statement
The company will pursue a loan of 500,000 Dirhams from a local lender. It will present a cash flow forecast, an opening Balance sheet for the first month, and, a closing Balance Sheet ending for first year to the bank. Eden Land will also present its income statement forecasting for the first year and owner equity, to the lender. This will help the bank to see how the company has planned its future cash requirements in avoiding the liquidity crisis.
Justification
The company chose this product because it is more profitable than the other products. Moreover, the demand for the Healthy Drink mineral water is high considering that the target audience wants healthy lives. The product will do well in the market place because it meets the needs of consumers.
The water business is profitable compared to other products in the market place (Drelich & Hwang 211). For instance, the costs incurred in the whole process before the product reaches the consumers are low. In addition, water is abundant and it costs less money to treat, and make it conducive for drinking.
Works Cited
Burns, Paul. Entrepreneurship and Small Business: Start-up, Growth and Maturity. Basingstoke: Palgrave Macmillan, 2011. Print.
Carson, David. Qualitative Marketing Research. London [u.a.: SAGE, 2001. Print.
Drelich, J, & Jiann-Yang Hwang. Water in Mineral Processing. Englewood, Colo: Society for Mining, Metallurgy, and Exploration, 2012. Print.
Marn, Michael V, Eric V. Roegner, & Craig C. Zawada. The Price Advantage. Hoboken, NJ: Wiley, 2004. Print.
Strydom, Johan. Introduction to Marketing. Cape Town, South Africa: Juta, 2004. Print.