Hanto Drink Product of the Queen Beverage Company - Case Study Example

Hanto Drink Product Name Institution Course Lecturer Date The Hanto Drink Product Design Brief TheQueen BeverageCompany will be a beverage company that will be manufacturing and distributing energy and soft drinks within Australian. The company will primarily offer non-alcoholic beverages both sparkling beverages and still beverages. The still beverages will consist of soft drinks without carbonation including non-carbonated purified waters, flavoured and enhanced waters, non-carbonated energy drinks, sports drinks, juices as well as ready to drink teas and coffees.The company will be selling its products under the Bonte and Fonto drinks brand names. The two brands which are sparkling soft drinks will be the main company products. Goals and Target market The company aims at producing at least two more new food products as well as expanding its market to the neighbouring countries. It also aims at providing flavouring ingredients such as sweeteners, fountain syrups and powders for clean water products to other beverage industries.The medium term goal for the company is to produce new soft drink: Hanto whose main ingredient will be honey. The Honto soft drink will be the only one of its kind in the country since the existing companies mainly use honey in producing alcoholic drinks. Through this new food product the company aims at capturing as many customers as possible. The main target market for the company is the people who do not consume alcoholic drinks but love sparkling drinks. Moreover the company aims at reaching to the people who suffer from stomach problems as well as lungs. This is because study has been conducted that revealed that honey has medicinal value especially to people suffering from stomach ulcers due to its antibacterial function. In addition it has been found that honey helps in suppressing cough.. (Yach, Lucio & Barroso, 2007) The company’s mission statement We aim to provide the highest quality natural and health drinks that nourishes and delights our customers as well as promote the community well-being and the country at large. In line to the company’s mission statement there will be core values that the company will abide to so as to meet its goals. These values will include; i) inspire, nourish and delight people with our products, ii) encourage economic growth through maximizing our short-term and long-term returns both to the company and to the shareholders, iii) serve, support and show responsibility to the local and global community, iv) cultivate and advance environmental stewardship through offering environment conservation programs. Idea Generation The Hanto drink production idea was generated after a deep consumer desires and likes investigation. The products ingredients were strategically chosen in order to suit the targeted consumers. Moreover the packaging was well designed to make sure that it created attention and attraction to the consumers. The drink which will make use of honey as the main ingredient will be among the new products that are being developed in the region using honey. Hanto will be composed of the following ingredients; honey, calories, sodium, food colour, potassium, cold water and ice cubes as well as a flavouring ingredient. The drink will be of various flavours ranging from orange, grape, pineapple and mangoes among others. Moreover the drink will be packaged within the company. This drink will be packed in 300ml bottle, 500ml and 1litre bottle. Example of functional closely related food product to the Hanto drink is the Axum Honey Beverage which is made from raw honey. Axum honey beverage is manufactured by Sundial Herbal Products in Africa. Another major producer of honey related beverages is the Arizona Beverage company. Arizona is famous with the production of Honey ice creams as well as honey beverages that are sold within the region. SWOT Analysis Strengths Weaknesses Opportunities Threats There is ready market for the products. There are available resources for the production of the beverages. The existing food products have limited varieties/flavours. The cost of production is quite high due to taxes. Young people and the aged are turning away from alcoholic drinks and turning to non-alcoholic ones. Honey has medicinal value hence it is attractive to many. There is high competition posed by the already existing energy and soft drinks in the country. There are limited personnel who have nutrition skills. Idea Screening The company had thought of producing another closely related product due to its easily available raw materials. The product was to use bananas as the main ingredient in the production. However upon a deep and detailed investigation the company found out that the product had more disadvantages than its positive factors. For instance the cost of producing the banana-based drink exceeded that of Hanto by nearly 30%. Moreover it required a lot of processes during its production as well as a lot of labour is required to produce the drink. Even though the raw materials of producing Hanto posed a problem the problems associated with the production of this other product proved to be more difficult. A comparison was drawn from the Arizona Beverage company that has recently been concentrating in the production of honey ice creams and it was found that Hanto drink would be feasible.(Yach, Lucio & Barroso, 2007) The market for the banana based product was also limited than that of the Hanto. This is because it mainly focused the children and aged group of people. Unlike Hanto that would be made into different flavours the banana based product would only be produced in one flavour. The mentioned limitations led the company to abandon the production of banana based product and settle for the production of Hanto whose market and range of production is wide. For the idea you have decided to go with, answer the following questions. If you give a yes or no answer you must add information to explain why you gave this answer. Financial Are the ingredients affordable? If they are expensive will it be worth it? Will you be able to recover those costs as part of the price? The ingredients for producing Hanto are available though some have very limited sources. This makes them costly for the company. However, after a critical evaluation of the productby comparing the product’s results with its costs of production it was found that the product would result to a profit. The price of each unit of Hanto as compared to the cost of production the company would make a profit. Can they be purchased by the school? Which ingredients? The school can be able to purchase the ingredients although for sample purpose. The ingredients that the school can be able to access include honey, coldwater, food colour and the flavouring ingredients. This is because they are all not expensive. Do they need to be purchased at home? Which ingredients? None of the ingredients need to be purchased from home since the y can be obtained by the school. This is because the school can be able to purchase them in large amounts unlike when purchased from home. If so, can you afford them? It is therefore not possible for me to access them at personal level due to their costs. Processing Do you have the skills to make the product? For example: Yes I have the skills to make the product. For instance the combination of the ingredients systematically until the product is obtained; the Hanto drink. However, the exact amount of each component needs to be sought out from the experts. Do you have a recipe to use/work with/ innovate on? Or are you going to experiment to create a recipe? There is no well detailed and reliable recipe so far. An experiment will be conducted so as to establish a recipe for the Hanto drink. This will help in determining the exact amounts of each ingredient that will be needed so as to come up with a drink that is unified in taste and in different flavours. Do you know how to carry out each process? What are the processes? Yes I know the processes that will needto be followed. This processes will include take a canned honey and add it into a combining jar then add the flavouring ingredient, add the food colour product and then warmthem for a while. Once the mixture is warm add some purified cold water together with the sodium pellets. The rest of the process will require to be carried out using specific equipment including the filtering machine as well as the condensing machines so as to obtain the final product. Do we have suitable equipment at school? For example: Some of the equipment required are not available in the school. Can the equipment produce the desired characteristics? Explain how. The equipment will be designed so that they will be able to produce the desired results. For instance the packaging equipment will be designed such that they can package the drink in the stated amounts that is 300ml, 500ml and 1L. What impact will processing have on the environment? The products that will be used in processing the product will not be expected to have any degrading effects to the environment. This is because most of them are natural products. Will there be waste? Explain. The waste materials will include water and some sieved materials that can be used as animal feeds. Product Does the product have characteristic that consumers would want? Explain The product will be consumer oriented. For example it will have medicinal value that will make it more attractive to the public as well as different flavours as the consumers may desire. Are the ingredients available? Where will you get them from? The ingredients are locally available. For instance honey will be purchased from the local bee keepers in the country while other ingredients will be purchased from the local industries. Do you have time to develop the product? Explain The product will require quite a long time to develop and therefore the available time may not allow this to take place. Marketing What do you know about the market it will enter? The market for the product is expected to pick as soon as the product is released the competitors will include the beverage companies in the country. However it is expected that there is no other firm that has a similar product as the Hanto drink. Will it need a particular type of packaging? Explain The packaging will be done using mainly plastic bottles that are degradable and to a less extent glass bottles. The bottles will have various designs as preferred by the company. What could be the marketing strategy to overcome competitors? The company will employ agents and open small retail shops that will help in the marketing and distribution of the product. Before the launching of the product free samples will be offered to the public. Moreover the company will engage in a rigorous advertising of the product so as to attract as many consumers as possible. Ethical and Legislative Does the product meet legislative requirements? Explain. The company will take all the required permits from the government to ensure that there is no unlawful activities take place. Any inconvenience caused by the company, it will be responsible and ready to compensate for the same. According to beverage companies act every firm must conform to the regulations and the standards of food production before starting any process for the food production. The company will abide by the set standard and regulations. (Guthrie, Cuganesan & Ward, 2008) Will the product be safe? Explain The product will be taken through the government laboratories to determine its safety for consumption by the general public. Will it be marketed and sold in an honest and fair way? Explain. Since the products that are related to Hanto drink are not many there will be no neck-breaking competition. The company will compete fairly with other related beverage companies Market Research Before the company enters into the market a serious research will be conducted to ensure that the firm is quite aware of the market. This will help the company management to know what channel to follow while conducting the marketing. It will also be in a position to know the concentration of the market as well as the market share that is able to control. The company will employ agents and open small retail shops that will help in the marketing and distribution of the product. Before the launching of the product free samples will be offered to the public. Moreover the company will engage in a rigorous advertising of the product so as to attract as many consumers as possible.(Rahman, 2008) Product Specifications The ingredients for producing Hanto are available though some have very limited sources. This makes them costly for the company. However, after a critical evaluation of the product by comparing the product’s results with its costs of production it was found that the product would result to a profit. The price of each unit of Hanto as compared to the cost of production the company would make a profit. Hanto will be composed of the following ingredients; honey, calories, sodium, food colour, potassium, cold water and ice cubes as well as a flavouring ingredient. The drink will be of various flavours ranging from orange, grape, pineapple and mangoes among others. Moreover the drink will be packaged within the company. This drink will be packed in 300ml bottle, 500ml and 1litre bottle. There is no well detailed and reliable recipe so far. An experiment will be conducted so as to establish a recipe for the Hanto drink. This will help in determining the exact amounts of each ingredient that will be needed so as to come up with a drink that is unified in taste and in different flavours. However the process that will need to be followed while combining the ingredients is known. This processes will include take a canned honey and add it into a combining jar then add the flavouring ingredient, add the food colour product and then warm them for a while. Once the mixture is warm add some purified cold water together with the sodium pellets. The rest of the process will require to be carried out using specific equipment including the filtering machine as well as the condensing machines so as to obtain the final product. Feasibility Study The estimated cost per unit sold: -300ml at $30 per crate -500ml at $45 per crate -1L at $70 per crate Cost of packaging per unit (estimate): The cost of packaging was estimated to be the equal irrespective of the quantities and was estimated at $10 per crate Cost of manufacture per unit (estimate): This was estimated at $15 per crate Price that could reasonably be charged per unit: This was estimated at $3 per 300ml Hanto drink, $5 per 500ml Hanto drink and $7 per litre of the drink. Time it would take to make 100 units: Using the required equipment this was expected to be 5 minutes to produce a hundred units of the drink. This amounted to 1200 units per hour. Profit on 100 units: This was estimated at $250 which approximately $2 per unit. Money that would be made for 1 hour of your time: Within an hour the company estimated to be making approximately $300 Conclusion: After the feasibility study it was found that the company would be able to carry out the production if the required equipment and the ingredients were obtained. However the cost obtaining some of the production equipment was quite high thus making it difficult for the starting of the company. Production Process Development The product will require quite a long time to develop and therefore the available time may not allow this to take place. In addition the company found out that the process required to develop the product would have been uniform for all the quantities of the product. The main area of development for the Hanto drink was the flavours, food colouring as well as the packaging of the product. Production Process Development Step in Production Process of small batch Equipment Needed How would the process be different for mass production. How would equipment be different Quality Control procedures The Hanto drink product will involve making a mixture of the required ingredients in a common jar. Once the product is ready, it will be taken into the packaging stage. Combining jar, packaging instruments (300ml,500ml and 1L measures), labelling instruments, The process for mass production will not be different from that of batch production. The equipment for packaging will be upgraded for mass production. The packed products will be taken through inspection process to ensure that the quantity, quality and the shape are correct. Each bottle will be marked clearly the date of manufacturing, expiry date as well the quantity of the product. Development of a Prototype The development of the prototype will entail the pros variation through which the initially developed recipe will be developed so as to create the product. This will be done by involving the government laboratories as well as the researchers so as to ensure that the Hanto drink is the original product of its type. Moreover the production process of the product will be keenly screened to ensure its originality as compared to any other beverage. The home recipe that involved the following; a canned honey that is added into a combining jar then addedthe flavouring ingredient, then food colour product and then warm the mixture for a while. Once the mixture is warm some purified cold water together with the sodium pellets are added. The recipe will be presented to prototype pros for further development. A photo of a prototype Packaging Hanto drink will be packed in both plastic and glass containers which will be labelled the product name and the amount of the product.Several ingredient icons will also be embossed on the transparent glasses so as to drive the message about theHanto drink a honey product home. The brand packagingwill be done in a well-designed glass that will be custom made to suit the product brand. The ingredients icons on the glass will enable the consumers to easily recognize the product. Varieties of packaging containers Testing of Product Prototype Hanto drink will be launched during a public holiday so as to capture as many consumers as possible. Most of the beverage company managers will be part of the launching process. This will be done so as to ensure that the product is the original one and there is no other of its type. References Yach, D., Lucio, A., & Barroso, C. (2007). Can food and beverage companies help improve population health? Some insights from PepsiCo. Medical Journal of Australia, 187(11), 656-657. Rahman, S. U. (2008). Quality management in logistics services: a comparison of practices between manufacturing companies and logistics firms in Australia. Total Quality Management, 19(5), 535-550. Guthrie, J., Cuganesan, S., & Ward, L. (2008, March). Industry specific social and environmental reporting: The Australian Food and Beverage Industry. In Accounting Forum (Vol. 32, No. 1, pp. 1-15). Elsevier. Read More