The Description of the Company and Product - Fresh Fruit Juice - Assignment Example

The Company of Fresh Fruit Juice and Its Products Table of Contents Table of Contents 1 1. Industry, Customer and competitor analysis 2 1.1Industry Overview 2 1.2Market Research and Analysis 3 1.2.1Market Size 3 1.2.2Estimated Market Share and Sales 3 1.2.3Market Trends 4 1.3Competitor Analysis 4 1.3.1Direct Competitors 4 1.3.2Indirect Competitors 5 2.The Company and product description 5 2.1.1The company 5 2.1.2The fresh juice concept 5 2.1.3The Product 6 2.1.4Competitive Advantages 6 2.1.5Entry and Growth Strategy 7 3.Marketing Plan 7 3.1.1Overview 7 3.1.2Understanding the customer 8 3.1.3Target customer profile 8 3.1.4Pricing strategy 8 3.1.5Sales Tactics 9 3.1.6Advertising and Promotion 9 3.1.7Marketing Communications Strategy 9 4.References 11 Executive Summary BestJuice Limited is the brainchild of Assem, who holds Bachelors Degree in Food Science and Technology with over two-year experience in food production. The company is located in a food court mall in Halifax, Canada. Over the decade, campaigns favoring organic products have been carried our extensively in Canada. This created big market for fresh fruit juices as many people abandon flavored juices. The trend has increased the growth rates of fresh fruits companies and other establishment in Canada. Fresh fruit segment is a rapidly growing segment with better future prospects and is segment to venture now. BestJuice Limited was established to take on growth opportunities in the fresh fruit juice market. Though many people are venturing into the segment, those who are going to survive rivalry onslaught and tighter regulations must produce high quality products, follow industry regulation to the latter, innovate saleable sales ideas and develop appropriate way of communicating products to the customers. The fresh fruit juice segment is on the growth rate and promises higher returns to investors. Therefore, it is a segment worth venturing. 1. Industry, Customer and competitor analysis 1.1 Industry Overview Fresh fruit industry is on the growing trend over the past decade because more people are becoming health conscious and are resorting to organic food products. Furthermore, since 2009, Halifax has been receiving increasing number of tourists and more residents have increased their spending at the restaurants and other food establishments. As a result, the fresh fruit industry recorded the highest growth in revenues ever in 2009 as more people consumed fresh fruits juice regularly, in increased proportions and situations. To sum it all, the overall restaurant industry recorded highest growth revenues in 2009 and companies exhibited strong balance sheets. Every segment of fresh fruit juices grew significantly and it is estimated that fresh fruit juice segment will grow at the rate of 4% - 6% annually in the next decade (Jackson, 2008). Food Pyramid and other food experts in Canada recommends daily intake of five to ten fruits and vegetables (Live strong, n.d). This number can easily be reached through fresh fruit juices in a simple and more enjoyable way. 1.2 Market Research and Analysis 1.2.1 Market Size The market for fresh fruit juice is large and continues to grow each day. It has been established through research that 2 percent of the three hundred thousand urban Halifax populations prefer fresh fruit juices. Halifax is 5490.18 Km2 with a population of about 400,000 residents. The urban population is about 300,000 residents and the median earning is $54, 129 (CIA 2010). Therefore, the fresh market juice is significantly large with over six thousand residents buying fresh fruit juice daily. 1.2.2 Estimated Market Share and Sales Out of the six thousands fresh fruit juice customers, it is estimated that BestJuice Limited will serve about five hundred customers daily. This translates to 9 percent of the total market. BestJuice Limited direct competitors will serve the remaining 91 percent of the total fresh fruit juice market. The 9% market share will enable the company to sell over sixty nine thousand litres of juice annually. 1.2.3 Market Trends More people are switching towards eating fresh fruits and drinking fresh fruits juices because of increased health concerns. Most populations especially the adult populations are informed about the health risks associated with non-organic foods. As a result, more people prefer fruits and fresh fruit juices to the flavored and carbonated drinks offered over the counter. However, most under aged populations (below 14 years) prefer flavored and carbonated drinks. Food experts asserts that daily intake of adequate fresh fruits and vegetables help boost persons immune system, increase the level of energy and prevent premature aging. The expert advice has been well received by most customers who turn to fresh fruits. 1.3 Competitor Analysis Fresh fruit market segment is a growing segment attracting new entrants annually. Higher operating profits, increasing market and low initial capital requirements are some of the factors that have made the segment attractive to venture. 1.3.1 Direct Competitors Direct Competitors of BestJuice Limited includes Smoothies and Juice bar, Gin and Juice, Frootique, Booster Juice Bar, Juice eh! and Orange Julius. Most of the above companies are national players and have developed over time. They have established their own customer base from many years in operation. However, in the food court mall where BestJuice Limited intends to establish its business, there is no direct competitors. The first competitor is found two hundred meters away from the mall. 1.3.2 Indirect Competitors Indirect competitors are supermarkets, departmental stores, convenience stores and food and beverage stores selling similar products. Though they are numerous in Canada, they do not pose direct competition because they largely sell flavored juices. 2. The Company and product description 2.1.1 The company BestJuice Limited is a private limited company that will open its doors on November 30, 2010. It is located at Halifax Municipality in a food court mall that has high traffic. Assem is the founder, owner and executive director. The owner holds Bachelors Degree in Food Science and Technology with over two-year experience in food production. Seventy percent of the total initial capital will be owner’s contribution (equity) while the remaining 30 percent will be a credit facility. 2.1.2 The fresh juice concept After working in the food industry for over two years, the Assem discovered that most people are turning to organic foods especially fruits and fresh fruit juices due to health and wellness concerns. Most customers who visited the restaurant in Halifax where BestJuice Limited owner worked were always disappointed when they could not find fresh fruit juices. Therefore, the owner of BestJuice Limited wanted to start her freshly squeezed fruit juice store to meet the needs of the increasing number of health and wellness conscious Halifax populace. 2.1.3 The Product BestJuice Limited will provide wide range of freshly squeezed fruit juices brands to its customers. The fruits juices will be packed and served in packages of 250ml, 500 ml, 1 litre and 2 litres. There will be over fifty varieties of fresh juices and they include; fresh orange juice, fresh sweet melon juices, fresh watermelon juice, fresh carrot juice, fresh guava juice, fresh straw berry juice, fresh mango juice, fresh pawpaw juice, fresh grape juice and fresh apple juice among others. In addition, there will be fresh fruit mixtures served at customer’s request. The fresh fruit juices will provide alternatives to both fast foods and flavored juices. The company will strive to provide strikingly fresh and unique fresh fruit juices at all times. Furthermore, the company will ensure that fresh juices maintain their natural ingredients and flavor. 2.1.4 Competitive Advantages Fresh fruit juice segment has attracted many players due to the segments attractiveness. Due to ever-increasing competition, BestJuice Limited will always try as much as possible to position itself as the most preferred fresh fruit store in the Halifax. The company intends to meet and exceed the expectations of its customers. The company is strategically placed in a food court mall near the high highway making it convenient for thirsty travelers and residents who wish to quench their thirst. The place is also somehow crowded and more commercialized as compared to other parts of Halifax Municipality. 2.1.5 Entry and Growth Strategy The fresh fruit segment is not difficult to penetrate because there are no significant barriers to entry. However, to ensure that BestJuice Limited enters the markets easily and position itself for growth, the company will apply four main strategies. The first entry strategy is to reduce fresh fruit juice prices slightly lower as compared to those of their immediate competitors. Secondly, attractive packaging and designs will be used. Third, maintain retain nutrition and flavor. Finally, maintain high level of cleanliness. 3. Marketing Plan 3.1.1 Overview BestJuice Limited intends to sell over sixty nine thousand litres of fresh fruit juice annually to residents of Halifax. To achieve the above ambitious target, the company developed a marketing plan to guide achieve the above target. 3.1.2 Understanding the customer The fresh fruit juice customers are more conscious about their health and wellness. In addition, most customers are not price sensitive when it comes to products touching their wellness. Finally, fresh fruit customers take at least 250ml of fresh fruit juice when they visit a juice store. Residents with families or dependants purchase at least 500ml of fresh juice per serving. 3.1.3 Target customer profile The primary customers for BestJuice Limited are people above the age of thirty years who comprise of about 53 percent of Halifax population. This is because the chosen population segment is health conscious and will not hesitate to purchase products that will boost their health and retard premature aging. 3.1.4 Pricing strategy Pricing is one of the most difficult activities in any business especially in an environment of ever-increasing level of competition. This is because lower prices can be interpreted wrongly by competitors and may trigger a series of price wars. Higher prices may chase away customers. BestJuice Limited will price its fresh fruit juices depending on the demand and customer’s perception on the product quality. However, the company will sell all its fruit juices at 5 percent discount in the first three months. This will be about $ 1.5 dollars for every 250ml of fresh fruit juice. Once the company’s products have been successfully introduced to the market, the company will sell at 6 percent higher than their direct competitors. Premium pricing will indicate superior products. 3.1.5 Sales Tactics The company intends to use the word of mouth to spread the beauty of its fresh fruit juices. For example, the company’s sales force will use dramatic statements such as “Even our personal doctors use our fresh fruit juices” to induce prospective customers to buy our products. In addition, the company will stock wide variety of juices for every person. Finally, the company employees will spend most of the selling early hours to speak to prospective customers with an intention of building good human relations. 3.1.6 Advertising and Promotion BestJuice Limited Company will advertise its juice varieties using the local Halifax Chronicle Herald. This is because the newspaper is in wide circulation and will reach thousands of Halifax residents. The company will also use two billboards containing a slogan “our juice, your health” to inform the customers of the location of the juice store and benefits derived from drinking our fresh juices. All the advertisement will include the company’s concept, list prices and pictures of inside where products are produced and packed. The company intends to carry out quarterly promotions at various parts of Halifax within a radius of five hundred meters from the company’s location and free fresh fruits juice samples will be offered to residents of Halifax. 3.1.7 Marketing Communications Strategy BestJuice Limited Company intends to promote visibly its fresh juice varieties through the internet. Web advertising is appropriate because Halifax has the highest penetration of the internet users in the whole of Canada. Halifaxkiosk.com will provide webhosting and advertising services for the company. Furthermore, the company will publish quarterly magazines and brochures to inform the customers of the existing and newly introduced juice varieties. 4. References CIA (2010). World Fact Book; Canada. Retrieved October 21, 2010, from https://www.cia.gov/library/publications/the-world-factbook/geos/ca.html Jackson, R. (2008) Wine science: principles and applications. (3rd ed.). London: Academic Press Live strong (n.d) What Is Canada's Food Guide? Retrieved October 25, 2010, from http://www.livestrong.com/article/100547-canadas/ Sizer, F. & Whitney, E (2007). Nutrition: Concepts and Controversies. New York: Cengage Learning. Timmons, J. A., & Spinelli, S. (2004). New Venture Creation: Entrepreneurship for the 21st Century, (7th ed.). Chicago: Irwin publishers. Read More