Introduction to the Product or Service
Illusion Food and Beverage Private Limited can be considered as a popular and emerging company, which produces food and beverage products. Quality, differentiation and diversification are considered to be three important parameters of success story of the company. The company is going to introduce new ranges of fruit juices for the target customers based on the existing demand and needs of the target customers. The juices are made of original fruit extracts. The company believes in quality. Hence, the company prefers fewer amounts of artificial flavors and higher amount of fruit extracts. In addition, the company management of Illusion Food and Beverage Private Limited prefers the introduction of the fruit juices of different portfolios in order to enhance competitive advantages within the global soft drink industry. Apart from the fruit juices, the company is also going to introduce different ranges of healthy soft drinks. The major objective of this report is to develop a business plan for Illusion Food and Beverage Private Limited including competitor analysis, situation analysis, value chain analysis, and sales and marketing plan development aspects.
Market and Competitor Analysis
Minute Maid, Tropicana, Real, PepsiCo, Coca Cola Company etc. are considered to be the major competitors of Illusion Food and Beverage Private Limited.
The above mentioned competitors used to sell fruit juices, carbonated soft drinks, different beverages and several zero calorie soft drinks. Most importantly, the companies used to sell the products similar to the products of Illusion Food and Beverage Private Limited.
Among all the above mentioned competitors, the Coca Cola Company is leading the global soft drink industry by grabbing a market share of 37 percent. PepsiCo is the market challenger by grabbing the market share of 32 percent. Apart from the carbonated and zero calorie soft drink industry, Tropicana is also an important and well recognized brand of global soft drink industry. The fruit juice manufacturer has succeeded to grab 21 percent of the global fruit juice industry.
The Coca Cola Company and PepsiCo have considered cost leadership business level approach in the business operation process in order to become successful. On the other hand, companies like Tropicana, Real etc. have adopted and applied differentiation business level strategy.
Real Fruit Juices and Tropicana Fruit Juices have been stick to their past strategies, but the Coca Cola Company and PepsiCo have considered new strategic approach. The management of PepsiCo and the Coca Cola Company has adopted the differentiation approach by introducing new ranges of healthy soft drinks products.
All of the mentioned competitors of Illusion Food and Beverage Private Limited are focused on the utilization of print media and digital media platforms to market the products.
The Coca Cola Company and PepsiCo frequently use the print and digital media activities in a single quarter. Therefore, it is acceptable that the company management of the Coca Cola Company and PepsiCo purchase the advertising rights in more occasions in a week comparing to the companies liked Tropicana, Minute Maid, and Real Fruit Juices.
Higher brand image and different types of unique product portfolios can be considered as the important strengths of PepsiCo and the Coca Cola Company. Apart from it, the differentiation approaches can be considered as the important strengths of Tropicana Fruit Juices and other mentioned fruit juices. In terms of weaknesses, the above mentioned competitors have faced challenges due to some negative impacts on the health of people.
Social and Political threats are considered to be some critical threat factors for the company management, which can affect the business growth and sustainability of the firms. It is already mentioned that the company management of the above competitors are facing different types of challenges due to some product quality related complaints. It can affect the social demand and can create political challenges.
From the above mentioned competitors, the company management of Illusion Food and Beverage Private Limited can learn about different competitive tricks. These can help in the better strategy development activities. For example, the management of Illusion Food and Beverage Private Limited can adopt different product portfolio strategic approaches to enhance better competitive advantages.
SWOT Analysis
It is a valuable situation analytical tool, which will help to recognize the important strengths, weaknesses. On the other hand, the management can identify the important opportunities as well as threat factors for better future strategic approaches.
| Strengths Different product portfolios and effective product differentiation are important strengths. High quality control can be regarded as important strength of the company. Effective distribution channel is considered to be another important strength. Use of both contemporary and traditional marketing platform is two important strengths of the company. | Weaknesses Lack of brand and product awareness can be considered as important weakness of the company. Lack of strong stakeholder support also can be considered as important weakness of the company. |
| Opportunities The company can adopt effective marketing and distribution tools as well as approaches for better brand awareness and improved product reach. Development of a strong research and development team can help in better quality management approach. | Threats Strong market competition is a major threat factor.; High market saturation is also an important threat factor. Strict legal policies can create different types of legal challenges. Quality control related challenges and approaches can cause different types of political and legal challenges. |
Sales and Marketing Plan
In terms of the development of the target customer group, the company management of Illusion Food and Beverage Private Limited will target people of all the demographic background. People aged between 12 and 65 will be major target customers. In addition, the company will target both male and female customers. Households, young adults, kids, married, and unmarried individuals will be targeted by the company management. In addition, the company management will target the people of middle-class, higher middle class, and upper class income group.
The quality and differentiation factor will be regarded as unique selling proposition of the company. Majority of the competitors and fruit juice manufacturers in the global market place used to consider different types of artificial flavored items in the manufacturing process. Therefore, it has created different types of health issues, which may have affected the brand image. However, the concept of real fruit extract and integration can be regarded as the major USP of Illusion Food and Beverage Private Limited.
In terms of pricing and proposition strategy, the company management of Illusion Food and Beverage Private Limited will sell the products at economic price level to gain competitive advantages. Implication of the cost leadership business level approach will help the company management to adopt the competitive pricing strategy.
In terms of distribution plan, the company will develop an open-ended decentralized distribution network. This will help to maintain a low supply chain lead time. On the other hand, it will also assist in maintaining low distribution cost with a stronger relationship with the suppliers and end users.
Manufacturing, Distribution and Operations
A value chain analytical framework will be developed in order to realize the manufacturing, distribution and operation management process of Illusion Food and Beverage Private Limited.
Value Chain Analysis
It is an essential strategic management tool, which is comprised of different important activities, such as primary activities and support activities. Implication of this tool will help the management of Illusion Food and Beverage Private Limited to identify the manufacturing and other operation management approaches of Illusion Food and Beverage Private Limited.
Primary Activities
Inbound logistics, service, outbound logistics, marketing and sales, and operations are considered as primary activities. In terms of inbound logistics, the company management is willing use the ICT software application for better and efficient inflow of the materials, finished inventory and other parts. In terms of operations, use of skilled employees and modern machineries is helping to improve the operation process. In terms of marketing, the company management is willing to use both traditional and contemporary approaches. In terms of sales, the company management is willing to use direct selling method. In terms of service, the company is focusing on the development of an effective customer service team in order to handle the quarries and complaints made by customers. In terms of the outbound logistics, the company management is willing to use the decentralized model for better outflow of the finished products.
Support Activities
Infrastructure, human resource management, procurement, and technological development are support activities. In terms of infrastructure, the company management is following the flatter organizational structure for better performance management. In terms of the technological development, the company is willing to use ICT and Big Data for better operational communication and data management approaches respectively. In terms of the human resource management, the human resource professionals are willing to use the transparent and ethical recruitment, selection, training and performance evaluation approaches. In terms of procurement activities, the company management of Illusion Food and Beverage Private Limited is focused on the development of a strong brand management partner for better operation activities.
Finance (Start-UP Funding and Source)
In terms of nature of finance, the company management will depend upon two financial sources, such as banks and angel investors. First of all, the company management will produce this particular business plan to the corporate banks. This business plan will help the c company regarding the initial investment aspects. Secondly, the company also can depend upon the angel investors for the financial support. It is acceptable that the company management of Illusion Food and Beverage Private Limited will impress different industry partners through the sustainability and performance management approaches, which automatically assist the firms in raising the capital for start-ups.
Risk Management and Measuring Success
In this business operation process, it can be acceptable that the company management can face different types of challenges, such as low profitability, low demand of the products, poor customer base. The company management of Illusion Food and Beverage Private Limited needs to adopt and implement some unique risk management approaches to control the risk factors and maintain success.
First of all, the company management should consider the development of financial metric aspect. It is already identified that the company will take a loan from bank and help from other angel investors. Hence, the company should focus on lowering the payback period to break even as soon as possible. It will help the company to enjoy revenue generation and profitability. Secondly, the company management of Illusion Food and Beverage Private Limited should strongly focus on the customer metric approach. According to this metric-base risk measurement process, the company should consider new product development activities for the better customer retention. Lastly, the company management of Illusion Food and Beverage Private Limited should strongly focus on the people metric tool. The company management should integrate the talent framework, talent development, talent management and talent assessment aspects for better risk measurement and risk controlling aspects.
Summary of Skills Set and Recommendations
Currently, the company management of Illusion Food and Beverage Private Limited is eying on the better product quality aspects. Unlike other competitors, the company management of Illusion Food and Beverage Private Limited is focusing on the manufacturing of the fruit juices made of original fruit extracts. This is also acceptable that the company management is focused on the development of different kinds of product portfolios through effective quality control. Hence, it can be identified that the management of Illusion Food and Beverage Private Limited has adopted and implemented the differentiation business level strategic approach. Following recommendation plans will assist the company management to maintain a strong competitive edge.
First of all, the company management should consider cost leadership approach in the business operation process as it will assist the company management sell products at the competitive price level. Secondly, the company management should also consider different types of unique marketing and promotion approaches. For example, the company management can consider the implication of mobile app based promotional activities beside of advanced digital media and social media activities. These activities will assist in better brand recognition and better brand awareness in the competitive global market place.
