1. How would your NAB business work in terms of operations (production, inventory control, distribution, customer service, research, and development, etc.)? 

Notes: 

• You will have to include all the equipment, technology and personnel listed in your NAB Company Portfolio from your business plan. The information is located under Note #2 in the portfolio.  
• You must use the information from the NAB Portfolio first and then you can add to it.  

Yummy cup 1

Yummy cup 4

Yummy Cup and SWOT Analysis

Latesha Habersham

Strayer University

BUS 599

Dr. Andrea Banto and Dr. Cynthia Parmenter

January 27, 2020

Yummy Cup

Company Description

My non-alcoholic beverage (NAB) company’s name is Yummy Cup. The perfect name significant because it represents the features of drinks produced. Particularly, it would inferred that it would specialize in different natural drinks without unhealthy components. Through sustainable processes with minimal negative impact on the environment. Around this time of year, they are a lot of resolution for getting fit and healthy. Weight lose are struggle for many, so why not create a delicious drink that can be enjoyed daily. Thus, the enterprise will be organic used in its products, business processes and initiatives.

For any company, it is important to develop a mission statement as it represents its nature, benefits and key goals. A good mission statement should answer four essential questions regarding the business and its products: what it produces, how it produces, for whom and with what values. (Hull, 2013). Considering the above statement, the mission statement for Yummy Cup will the following, “We produce sustainable and healthy drinks for customers who value their health and the environment. We promise that our business is green and sustainable on each stage of production”. The given mission statement stresses two key benefits of the company and its products. Specifically, the products are useful for health, and the enterprise is responsible for the environment in terms of production processes.

When considering the non-alcoholic beverage industry globally, several main trends can be distinguished. To begin with, the industry is experiencing gradual and continuous growth. As for 2020, the projected annual growth rate is about 4.7% (Mordor Intelligence, 2020). The largest market for these drinks is Europe, while Asia Pacific is the one that demonstrates the highest growth rate. This region has positive prospects for the future because demand for non-alcoholic drinks is rising rapidly due to the increase of population and incomes especially with regard to the middle class consumers. The second key trend of the industry is the growth of online sales of drinks. In 2018, the growth rate was 7.84% (Mordor Intelligence, 2020). It is also necessary to highlight that the largest competitors in the global market are PepsiCo Inc., the Coca-Cola Company, Danone S.A., and Nestlé S.A. (Mordor Intelligence, 2020). They produce both carbonated drinks and non-carbonated drinks that are the two major types of beverages in the non-alcoholic beverage industry.

Yummy Cup will produce mostly non-carbonated beverages such as juices and teas. When considering the market for these particular drinks, one can claim that it has positive prospects for the nearest years because globally, people are becoming more concerned about their health and prefer healthy drinks to carbonated ones with sugar (Mordor Intelligence, 2020). The current trend is that customers demonstrate an increased focus on wellness and health benefits of drinks. Consequently, soda consumption is declining gradually, while customers, especially millennials, prefer healthy non-carbonated drinks (Colbert, 2019). Consumers also like drinks of different colors and flavors, as well as those with healthy plant ingredients (Chichery, 2018). In addition, they pay more attention to premium drinks made of exotic and natural ingredients (Colbert, 2019). Therefore, it is advisable for Yummy Cup to focus on the contemporary trends and offer consumers a wide choice of healthy non-carbonated drinks with various ingredients and flavors.

The best strategic position for the company will be differentiation because it will help to promote premium and natural products with prices that are not very low. In order to implement this strategic position, the best approach is a marketing campaign that will stress benefits of the drinks especially the ones its competitors do not offer. In particular, it is important to place an emphasis on natural and healthy ingredients used to produce beverages as well as exotic ingredients and flavors. This strategy will help to distinguish beverages of Yummy Cup from other non-alcoholic drinks produced by rivals.

As for the company’s distribution channels, they will include mostly large retail chains such as supermarkets as they are located everywhere and can reach many potential customers. In addition, the business will focus on online retail channel, because the popularity of buying foods and drinks vs. the Internet is growing. Online distribution channels will be especially important to target millennials who focus on healthy lives and buy products online as healthy goods are not always available in supermarkets. The company will sell drinks directly to retail chains and large online stores in order to shorten their way to customers and minimize costs.

Our business can potentially face several key risks. The first one is regulatory because production of natural organic products requires specific certification. There are also market risks that are mention above, there are many beverage companies, including giants like PepsiCo and Coca-Cola Company that have large market shares, a lot of loyal customers and expensive marketing campaigns to target almost everyone. Thus, it may be hard to compete with them. Finally, Yummy Cup may experience economic risks, as the drinks are natural and, therefore, have quite high prices. If consumers’ incomes decline, demands will become a threat.

SWOT Analysis of Yummy Cup

Strengths

· The company specializes in healthy drinks, and this focus is positive because the market for healthy and non-carbonated drinks is growing.

· The business focuses on organic and healthy drinks and uses homemade and exotic ingredients of top quality.

· The niche market includes different types of healthy drinks, and it can target many potential customers all over the world. There is a wide choice of drinks by their types, bottle volumes and flavors.

· The company will hire managers, engineers and other team members who have previous experience in the food and beverage industry. Therefore, they will bring their expertise and knowledge to the business.

· Yummy Cup concentrates efforts on sustainability and responsible business processes, which is helpful to attract customers and increase their loyalty.

Weaknesses

· The company is new, and its brand is not familiar for most customers. Therefore, it will be hard to compete with top contenders, as well as with older companies that are popular by consumers.

· As we plan to produce natural and healthy drinks with organic ingredients, the prices will be relatively high especially in comparison with popular drinks produced by large market players.

· We lack enough management and marketing experience to develop and promote products to make them competitive. Although we will hire experienced managers, a new company may differ from older ones in terms of management.

Opportunities

· The business has growth opportunities in the global market because, currently, the market for healthy, natural and organic drinks shows more demand than supply. Demand for healthy drinks is becoming higher in comparison with carbonated ones. It is taking place due to changing tastes of young customers.

· Yummy Cup can target premium market segment by stressing that its products have natural ingredients and are beneficial for health. Larger competitors do not serve this niche properly.

· It is possible to focus more on Asia Pacific market for beverages, as it has been currently demonstrating significant growth.

Threats

· As healthy and natural ingredients will lead to high prices, it may be hard to find loyal customers, especially in emerging markets.

· It may be difficult to enter the beverage market as several huge global companies with established markets and famous brands dominate it.

· In the global market, Yummy Cup may face problems with economic fluctuations resulting in changing consumers’ incomes.

References

Chichery, S. (2018). Top five predictions for 2019 beverage trends. Retrieved from http://www.tcma-conseil.com/top-five-predictions-for-2019-beverage-trends/

Colbert, R. (2019). 5 trends transforming the beverage industry. Retrieved from https://home.kpmg/xx/en/blogs/home/posts/2019/08/five-trends-transforming-the-beverage-industry.html

Hull, P. (2013). Answer 4 questions to get a great mission statement. Retrieved from https://www.forbes.com/sites/patrickhull/2013/01/10/answer-4-questions-to-get-a-great-mission-statement/

Mordor Intelligence. (2020). Non-alcoholic beverage market – growth, trends, and forecast (2020 – 2025). Retrieved from https://www.mordorintelligence.com/industry-reports/non-alcoholic-beverage-market