Nature Cola Company’s Marketing Plan Report

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For a venture capitalist, it is important to review a detailed marketing plan to minimize losses from investment. This is achieved by performing thorough due diligence on financial and marketing projections. This paper reviews the Nature Cola business plan in terms of strengths and weaknesses as the basis for investment decision making.

The strong points in the Nature Cola proposal include clear market segmentation (young adults), comprehensive market trends for the soft drinks, unique marketing strategies such as a well-organized distribution patterns, and reasonable financial budgeting. The business plan clearly spells out the estimated budget and potential returns over a specified period of time. Besides, the proposal defines plans to put in place to accomplish the target market share and potential challenges that might be faced in the process of its execution.

The branding and name of the product are very easy to internalize among the targeted customers. Since the business plan for the Cola product is a product of research, the creators have identified the potential competitors and other market dynamics to make it practical to implement. Specifically, the plan highlights the potential strategies for managing challenges that might arise during its implementation. From a financial perspective, the Nature Cola business plan’s suggestion of a low pricing strategy for the product might increase the probability of product acceptance and market sustainability in the short and long-term.

Despite having well-defined budgeting, the plan has weak financial risk management. For instance, the plan is silent on detailed, focused in terms of financial performance over a relatively long period. As it is, too much emphasis is placed on the assumption that the financial projects will work perfectively. Sadly, the projections are not subjected to financial tests for practicality in the dynamic soft drink market. In addition, the focusing is based on the financial activities of the main competitor, rather than the current financial ability of the company that might introduce the product in the market. This means that most of the ideas in the plan from a financial perspective are based on suggestions that cannot be tested for their practice, especially in the event of a market downturn before breakeven.

The current Nature Cola plan is incomplete since it does not cover an important aspect of new product research such as risk management matrix, funding sources and their evaluation, financial statements to track the overheads over the three-year period against projections, and potential action plan if the business fails to breakeven within the projected period. These elements should be added to make the plan complete. Specifically, these elements form the basis for decision making as a venture capitalist interested in investing in the Nature Cola product.

In its current state, I would not be willing to invest the required capital since the risk level is very high, considering the dynamic nature of the market and limited financial information. Besides, the plan does not guarantee me the possible avenues for capital recovery should the business fail to take off or breakeven within the estimated time.

The modifications I would suggest on the Nature Cola product to increase chances of success would be rebranding the name and packaging by the use of glitterati words and bottle design to appeal more to the targeted young adults. As it is, the product is just like any other soft drink in the market.

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IvyPanda. (2020, August 3). Nature Cola Company's Marketing Plan. https://ivypanda.com/essays/nature-cola-companys-marketing-plan/

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"Nature Cola Company's Marketing Plan." IvyPanda, 3 Aug. 2020, ivypanda.com/essays/nature-cola-companys-marketing-plan/.

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IvyPanda. (2020) 'Nature Cola Company's Marketing Plan'. 3 August.

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IvyPanda. 2020. "Nature Cola Company's Marketing Plan." August 3, 2020. https://ivypanda.com/essays/nature-cola-companys-marketing-plan/.

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IvyPanda. "Nature Cola Company's Marketing Plan." August 3, 2020. https://ivypanda.com/essays/nature-cola-companys-marketing-plan/.

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