Prickly Pear Water Company Analysis - Example

Prickly Pear Water Company (PPWC) Analysis Prickly Pear Water Company (PPWC) Analysis Company PPWC is a privately owned company scheduled to start operating on 3rd November 2014. Its aim will be to provide quality drinking products include Prip Water, Prip juice, and Prip Med juice. Prip Water which is a water purified using gum extracted from the prickly pear cactus, While Prip juice is a fresh juice from the cactus and recommended for the whole family. Finally, Prip Med Juice made specifically for use by diabetic patients, obese individuals and those who suffer from hangovers. The company will also be involved in packaging and selling of the prickly pear cactus fruits. The Company develops Prip Juice, Prip water and Prip Med Juice that are both refreshing and have lots of nutritional values. Our ideas resulted from the unexploited existing market and availability of resources. Our aim is to ensure quality and hence have consulted with prospective customers to ensure our products are highly accepted in the market. Most sample products have been highly appreciated. The product is of high quality, and everyone should try it out. Its headquarters will be Toledo Ohio; the rented space will be enough for office equipments and staff. The office equipments include computers, photocopiers, fax machine and other machines used in juice extraction and packaging. The company will start with an initial employee capacity of 30 employees. The employees will cover all the departments including administration, production, packaging, sales and marketing and management. The company will be run by a four board of managers composed of as the CEO, James Smith as the CFO, Ann Hodgson as the sales and marketing manager and Susan as the Human Resource Manager. Problem According to Marie and Emmanuel (2014), “the number of overweight and obese persons rose from 857 million in 1980 to 2.1 billion in 2013”. Worldwide, there has been a surprising increase in rates of obesity with 28% increase among adults and 47% among children in the past 33 years. The prevalence of diabetes worldwide was approximated to be “2.8% in 2000 and 4.4% in 2030” (Marie & Emmanuel, 2014). The number of diabetic people is anticipated to increase from 171 million in 2000 to 366 million in 2030. Records from WHO 2012 indicate that approximately 15 people die per minute from water-related diseases. Water purification methods being used currently are very expensive resulting to the poor drinking unclean water. Treatment for diabetes and obesity are also expensive and out of reach for the majority of the poor world population. Solution The company establishment is based on an existing gap in the fresh juice industry. Despite their availability and numerous nutritional values, very few individuals and companies have venture in producing cactus products. The company, therefore, aims at supplying its supplies at cheaper prices to ensure their availability to the poor individuals. Prip water is not only available but cheap as a result of the low cost of production. Availability of the prickly pear fruits makes the Prip Juice and Prip Med Juice also cheap and affordable to all individuals. Prip water is purified water, purified at the company using gum from the cactus plant. The drink will be bottled in 500ml, 1L, 5L and 10 L labeled bottles. Prip Juice contains 70% juice derived from the prickly pear fruit and 25% water with food colors and sugar as the only additives. It will be packed in 500 ml and 1 L bottles. Prip Med Juice contains 90% juice derived from the prickly pear fruit and 10% water with no additives. The table below indicates the prices of all the products; Prip Water Price($) Prip Juice Price($) Prip Med Juice Price($) 500ml 0.25 500ml 2.00 500ml 2.50 1L 0.50 1L 3.90 1L 4.10 5L 2.00 5L 15.00 5L 17.50 10L 4.00 10L 30.00 10L 33.00 From the analysis, the customers are interested in proper packaging, quality products and favorable prices and this information has profoundly influenced our production since our aim is to meet our customer’s needs and preferences. Target Market Our target market includes diabetic patients, obese individuals and those suffering from hangovers. Prickly pear fruits are known for their curative purposes, they help decrease the blood sugar levels. The juice, fruit and water are also essential for all household members and have high nutritional value. With the increased campaign on health issues, there is increased demand for nutritional goods. There are therefore growth prospects for the nutritious cactus products. Company Goals and growth prospects The goals of the company are to create employment, contribute to government revenue through tax payment, improve health by provision of nutritional products and from its products medical values and utilize the readily available resources. There is an assured market for the company’s products, and advertisement is intended to ensure individuals are made aware of the existence of PPWC and its quality products. We will offer sample products, free gifts (Clow, 2007), use social media (Deis & Kyle, 2010) and displays in major shops and supermarkets to provide maximum coverage. The company expects a 2% annual growth as it covers new markets. This will be achieved by continued advertising, partnership with medical institutions and venturing in new markets. The company’s mission is to be a universal producer and supplier of prickly pear products. Financial Analysis The company’s financial year will start on 1st November and end on 31st October. Several economic assumption are made including; every month has 30 days, the total revenue expected will be $ 799,500, while the total expenses will be $ 604, 500 and the operating cash flow is $195,00. In connection to this, the total revenue resources cost amount to 30% of total assets. Also 30% of total revenue will cater for all labor costs, advertisement cost will be higher during the first months of launching a product and sale of the juice will be higher during the summer season. From the attached financial model, the company will be highly profitable. Profits will be highest during the summer season as a result of increased sales. In conclusion, the business idea is a viable one as shown from the company analysis and financial analysis. The company will not only be relevant in earning income to owners but will also create employment a, make clean water accessible to needy individuals, provide nutrition to households and will be used as medicine for the diabetic and obese individuals. References Clow, K. E. (2007). Integrated Advertising, Promotion, and Marketing Communications, 3rd Ed. Chicago: Pearson Education. Deis, M. H. & Kyle H. (2010). Using Social Media to Increase Advertising and Improve Marketing. New York: Wiley & Sons. Feugang, J. (2006). Nutritional and medicinal use of cactus pear (Opuntia spp.). Cladodes and fruits. Frontiers in Bioscience. Marie, N. & Emmanuel G. (2014). The Lancet: Global, Regional and National Prevalence of Overweight and Obesity in Children and Adults during 1980–2013. New York: Wiley & Sons. World Health Organization (2012). Joint Monitoring Program me for Water Supply and Sanitation. A Progress on Sanitation and Drinking-Water Report. Read More