Sobar: The Non-Alcoholic Drink Report

Sobar will be a non-alcoholic drink made with organic foods and natural herbs that promote human health. The non-alcoholic beverage will contain natural fruits as sweeteners. The beverage’s active ingredients will be used to prevent specific health conditions and promote the non-alcoholic culture that is gaining public support across Australia. Different types of the beverage will be made with natural herbs as active ingredients for the management of different nutrition-based health conditions.

Industry Background

The non-alcoholic beverage industry in Western Australia comprises of different products sold at different prices. A study on the non-alcoholic products in Australia shows there is a significant trend in declining sales of sugar-sweetened beverages.¹ In addition, there is an increased consumer preference in healthy foods in the country which has enhanced the development of agribusiness. Consumer preferences show that quality and health benefits significantly influence the demand for food and beverages.² Due to this reason, the choice of producing a fruity and non-alcoholic beverage with natural herbs will have significant benefits in the country.

Store Location

Store location is a crucial aspect that determines sales because customers must be able to access the place with ease. An analysis of the current beverage market shows that there is an increase in online purchases compare to in-store sales. This process has made most businesses to create online leads that would enhance sales of the products in online stores. Due to this reason, Sobar distillers will only be sold online. The organization will take advantage of the highly evolving online stores to ensure that it can meet the needs of customers who want to purchase the non-beverage drink.

Merchandizing

Based on the seasons experienced in the country, the company will make beverages of different flavors. The variety of flavors are developed to meet the different consumer tastes hence they will be based on customer preferences. The distiller will research the various demanded flavors commonly purchased in different seasons to ensure that the product will meet the demand to attain maximum profitability.³ The firm will develop customized packages for different occasions and holidays to enable the customers to enjoy the company’s products and feel as if they are part of the organization. The firm will partner with event planners to ensure development of customized packages for different events.

Value-based Pricing Strategy

Since the product will be new in the industry, a value-based pricing strategy will be used to determine the price of the products. The strategy sets prices based on the customer’s perceived product value. In this case, the pricing will be based on how customers value the beverage.⁴ As a result, the company will focus on the needs of the clients to ensure that the product penetrates the market and gains popularity as a non-alcoholic and a healthy drink that will prevent numerous health issues affecting the community.⁵ The product will have tailored prices for special events that will be used to promote the product.

Communication with Customers

The company will utilize different mechanisms to communicate with the clients. The organization will have an official website that will be used to enhance the interaction with its consumers. Customers will have the time to interact with the customer service agent 24-hours a day where they can give suggestions, place complains and provide any other relevant information that would enhance the quality of the products developed. The organization will use its Facebook, Instagram and WeChat pages as an advertisement tool where information about the health benefits of the beverages will be communicated.

Strategic Planning in Retailing

Based on the nature of the product and the market forces operating in the industry, there is a need to undertake constructive research for effective retailing practices. An analysis of the beverage industry shows that the demand for non-alcoholic drinks in Australia is rising, with many companies being established to meet the increasing demand. This demand is influenced by the increasing transformation of Australians who maintain an alcohol-free lifestyle⁶. The change in attitude is perceived to positively impact the distillers of the non-alcoholic beverages which are gaining popularity in the country.⁷ The move has made numerous players enter the market, leading to the development of various non-alcoholic beverages.

Government policies are another factor influencing the retailing plan developed by most distillers in the country. The nature of healthy food promotion and beverage sales in retail settings is significantly influenced by the policies maintained in the country. Most states, including Australia, have developed policies promoting food sales and healthy living standards.⁸ In line with such a policy, most retailers buy non-alcoholic beverages, promoting their sales in most supermarkets across the country. Studies show that merchandising of food and beverages plays a critical role in influencing consumer behavior.⁹ Therefore, beverage distillers are forced to develop products that positively impact the population’s diet, as targeted in the development of Sobar’s non-alcoholic beverage.¹⁰ Solar distillers have ensured that the beverage developed is in line with the food and beverage policies implemented in the country.

In addition, Australia is one of the countries that are focused on the improvement of population diets. This aspect is based on the fact that the country has prioritized public health. An analysis of the market for non-alcoholic beverages shows that supermarkets play a critical role in distributing such products as they are key players in the food supply system. The process is perceived as a corporate social society move where the retail stores use their products to promote the health of the citizens¹¹. Solar distillers will use this aspect to their advantage and the promotional mechanisms utilized by supermarkets to advertise the sales of their beverage products.

Climatic patterns and geographical locations are other factors the influence consumption of beverages. It is presumed that climate and environmental factors play a critical role in the related practices maintained by the beverage industry.¹² People tend to take different types of beverages based on the climatic conditions experienced in a given locality.¹³ Seasonal patterns and daily temperatures influence their uptake of beverages. In such a perspective, individuals living in regions that experience high temperatures take refreshment beverages that would enable them to manage the temperatures.¹⁴¹⁵ In addition, geographical factors significantly impact the retail practices maintained within the region. In a country such as Australia, people are developing a culture of taking non-alcoholic beverages for refreshment.¹⁶ The move is a harm minimization strategy where the country aims at attaining a healthy population.

The company will take advantage of the healthy food and beverage policy maintained in Australia as one of the strengths of its retail plan. The distiller will take advantage of corporate social responsibility measures undertaken by most supermarkets in Australia, which promote the sales of non-alcoholic beverages as a means of encouraging healthy lifestyles in the country.¹⁷ The retailer will examine the country’s climatic changes and seasonal patterns to promote the beverage’s sales. The new drive to consume non-alcoholic beverages is another significant factor that will enable easy product entry into the market.

Bibliography

Berman, B., & Evans, J. “Strategic Planning in Retailing”. In Retail Management: A Strategic Approach, Pearson Prentice Hall, New Jersey, 2006.

Brimblecombe, Julie, Emma McMahon, Megan Ferguson, Khia De Silva, Anna Peeters, Edward Miles, Thomas Wycherley, et al. “Effect of Restricted Retail Merchandising of Discretionary Food and Beverages on Population Diet: A Pragmatic Randomised Controlled Trial.” The Lancet Planetary Health 4, no. 10 (2020): 463-73. Web.

Brown, Steve, John Bessant, and Fu Jia. Strategic Operations Management. Oxfordshire: Routledge, 2018.

Hirche, Martin, Juliane Haensch, and Larry Lockshin. “Comparing the Day Temperature and Holiday Effects on Retail Sales of Alcoholic Beverages – A Time-Series Analysis.” International Journal of Wine Business Research 33, no. 3 (2021): 432–55. Web.

Miller, Mia, Simone Pettigrew, and Cassandra J. Wright. “Zero‐Alcohol Beverages: Harm‐ Minimisation Tool or Gateway Drink?” Drug and Alcohol Review 41, no. 3 (2021): 546–49. Web.

Nasse, Theophile Bindeoue. “The Sanctified and the Non-Sanctified: Why Intrinsic Muslim Consumers Often Digress the Halal Consumption Ethics?.” International Journal of Management & Entrepreneurship Research 3, no. 6 (2021): 218-227. Web.

Ngqangashe, Y., K. Cullerton, S. Phulkerd, C. Huckel Schneider, A. M. Thow, and S. Friel. “Discursive framing in policies for restricting the marketing of food and non-alcoholic beverages.” Food Policy 109, no. 1 (2022): 102-23. Web.

Shrapnel, William S., and Belinda E. Butcher. “Sales of sugar-sweetened beverages in Australia: a trend analysis from 1997 to 2018.” Nutrients 12, no. 4 (2020): 1016-18. Web.

Suter, Rebecca, Caroline Miller, Timothy Gill, and John Coveney. “The Bitter and the Sweet: A Cultural Comparison of Non-Alcoholic Beverage Consumption in Japan and Australia.” Food, Culture & Society 23, no. 3 (2019): 334–46. Web.

Zhang, A. and Jakku, E. “Australian Consumers’ Preferences for Food Attributes: A Latent Profile Analysis. Foods 10, no. 1 (2022), 56. Web.

Footnotes

1. Shrapnel, William S., and Belinda E. Butcher. “Sales of sugar-sweetened beverages in Australia: a trend analysis from 1997 to 2018.” Nutrients 12, no. 4 (2020): 1017. Web.
2. Zhang, A. and Jakku, E. “Australian Consumers’ Preferences for Food Attributes: A Latent Profile Analysis. Foods 10, no. 1 (2022), 56. Web.
3. Pravst, Igor, and Anita Kušar. “Labeling of Nonalcoholic Beverages.” Trends in Non-alcoholic Beverages, 2020, 263–307.
4. Brown, Steve, John Bessant, and Fu Jia. Strategic Operations Management. Oxfordshire: Routledge, 2018.
5. Ibid
6. Pravst, Igor, and Anita Kušar. “Labeling of Nonalcoholic Beverages.” Trends in Non-alcoholic Beverages, 2020, 263–307. Web.
7. Miller, Mia, Simone Pettigrew, and Cassandra J. Wright. “Zero‐Alcohol Beverages: Harm‐Minimisation Tool or Gateway Drink?” Drug and Alcohol Review 41, no. 3 (2021): 546.
8. Pravst, Igor, and Anita Kušar. “Labeling of Nonalcoholic Beverages.” Trends in Non-alcoholic Beverages, 2020, 263–307. Web.
9. Brimblecombe et al., Effect of Restricted Retail Merchandising of Discretionary Food and Beverages on Population Diet: A Pragmatic Randomised Controlled Trial.” The Lancet Planetary Health 4, no. 10 (2020): 463-73. Web.
10. Wycherley, et al. “Effect of Restricted Retail Merchandising of Discretionary Food and Beverages on Population Diet: A Pragmatic Randomised Controlled Trial.” The Lancet Planetary Health 4, no. 10 (2020).
11. Hirche, Martin, Juliane Haensch, and Larry Lockshin. “Comparing the Day Temperature and Holiday Effects on Retail Sales of Alcoholic Beverages – A Time-Series Analysis.” International Journal of Wine Business Research 33, no. 3 (2021): 444. Web.
12. Hirche, Martin, Juliane Haensch, and Larry Lockshin. “Comparing the Day Temperature and Holiday Effects: 445.
13. Nasse, Theophile Bindeoue. “The Sanctified and the Non-Sanctified: Why Intrinsic Muslim Consumers Often Digress the Halal Consumption Ethics?.” International Journal of Management & Entrepreneurship Research 3, no. 6 (2021): 220. Web.
14. Ngqangashe, Y., K. Cullerton, S. Phulkerd, C. Huckel Schneider, A. M. Thow, and S. Friel. “Discursive framing in policies for restricting the marketing of food and non-alcoholic beverages.” Food Policy 109, no. 1 (2022): 111. Web.
15. Suter, Rebecca, Caroline Miller, Timothy Gill, and John Coveney. “The Bitter and the Sweet: A Cultural Comparison of Non-Alcoholic Beverage Consumption in Japan and Australia.” Food, Culture &am; Society 23, no. 3 (2019): 334.
16. Hirche, Martin, Juliane Haensch, and Larry Lockshin. “Comparing the Day Temperature and Holiday Effects on Retail Sales of Alcoholic Beverages – a Time-Series Analysis.”