Nantucket Nectars: Case Study
Carl Medeiros
5/1/2010
Tom Scott and Tom First started Allserve, a floating convenience store serving boats in the Nantucket Harbour during their summer holidays in college. After graduation, during the winter of 1990, Tom First recreated a peach fruit juice drink that he came across in Spain and started a side business selling his fresh juice. Everyone loved the product and they went on to open the Allserve General Store on Nantucket's Straight Wharf. They named the fruit juice "Nantucket Nectars".
Tom and Tom invested both of their life savings, which was about $17,000 to contract a bottler and finance inventory in the first two years. The next two years saw them operating in an undercapitalized
…show more content…
Threat
Competition in the beverage industry is extremely intense. Competitors continually introduce new innovative products and consumers are bombarded by numerous choices and promotions. Nantucket Nectars has been successful with increasing sales and continually innovating new products, and grown to a middle-sized company. This position proves to be a dangerous one as it does not possess the financial strength of a large company but yet may not have the quickness and innovativeness of a small company. In addition, the entrance of big players such as Coke, Pepsi and Tropicana/Seagram with strong financial standing may reduce their revenue.
Also, the past few years saw Nantucket maturing and it has begun to stabilize as a company. This is a dangerous period for the company as it might cause a crisis if they do not undergo renewal in order to rejuvenate and stay relevant and competitive.
Should they go IPO?
The advantages of going through an IPO would be that it would provide Nantucket Nectars interest free capital to finance growth as well as raise the company’s profile which would allow them to attract high quality customers, alliance partners and employee’s. However, the disadvantages of an IPO would be that it’s an expensive and time consuming process and would require all company information to become public knowledge. Also, it may mean that Tom and Tom would have to
Advantages- Less liability for stakeholders. Ability to raise funds/capital in the form of stocks as needed.
The number one goal for this company is to reach the $100,000 mark in the year 2000. Based on the findings that are occurring in this company, the best way for this situation to have a chance of occurring is by reducing the price of the drinks during a certain period of the year. This time frame is best described between the
The understanding of the goal to be envisioned at Seagram moving forward is to become, remain, and develop an outside reputation as the top beverage company with 15% growth each year (Jick & Peiperl, 2011). The vision must effectively be passed to the 200 senior managers to make it a shared goal to be given and embraced company wide. The hope is that the top managed beverage company will be efficient and customer-centered, recognizing employees, while not micro-managing. The old model, based on decades old vision, needs to be replaced with a quasi-tried vision that has helped Seagram remain as one of the top, well-known companies. The new vision has seen success and is moving the company alongvtowards being the top managed beverage company. There are yet and still steps that will provide some right now actions that may help Seagram reach this goal of being the top managed company in the near future.
Napoleon Bonaparte is credited with the quote, “War is ninety percent information” (Network Intellect, 2015, para. 1). Business is war and competitors are enemies. Before a product manager (PM) can develop a strategy to overcome the competitor with a new product or service, the manager must scan the environment to identify barriers and opportunities in the organization, industry, and marketplace (Reed & Bogardus, 2012). Starbucks Corporation (Starbucks) is one organization familiar with the competition. To remain aggressive in the coffee market, Starbucks must execute a TIME analysis to distinguish their strengths and weaknesses in the various segments and employ a plan leading them to victory over their opponents.
Clearwater Seafood (Clearwater) is a seafood company located on the east coast of Canada, and Clearwater Seafood income Fund with operations around the world. As a result of the increasing importance of the Canadian dollar relative to other currencies of the world, Clearwater recently stopped paying their distributions. The decision faced by the financial director to determine the strategy of the company should take to enable it to recover its distribution. This is due to the choice between various financial and operational resources to hedge currency risks that brought the company to its current situation
JBI distributes principally bottled sports drinks provided by small specialty beverage companies. The company’s discounts policy depends on customers and is based on a number of commercial factors.
Molson Coors is a thriving international brewing company that has nine Signature Brew drinks and 123 Special Brew drinks that ranges from non-alcoholic to alcoholic (Molson Coors Brewing Company, 2016b). They have multiple markets around the world which contributes to the success of the company in the brewing industry. This report analyzes Molson Coors’ internal and external environments which determines their position in the brewing industry. It also discusses strategies the company uses in order to be successful in their industry. Molson Coors shares the industry with its main competitors but has its own uniqueness that makes its business stand out. Molson Coors is a successful business that presents opportunities for economic growth.
Noticing the tremendous success within the industry in such a short time, Nantucket Nectar and Juice Guys decided to expand this new juice retail concept into the East Coast. Their primary focus within the East Coast was expansion into the Boston market. Although this
He was still faced with the problem of raising close to $10 million on an equity base
They have focused on building brand recognition and profitability by growing the business gaining assets to grow the company and products for greater customer satisfaction (About GMCR, 2004-2009). GMCR’s strategy to incorporate current large brands, such as Tully’s, Diedrich, and Keurig has helped to expand their customer base and satisfaction as well as the markets for their products (Phillips, 2011). Their focus on increasing their market shares in other companies will facilitate their expansion into new geographical markets and promote the brand. GMCR’s partnership with Keurig creates a larger consumer choice and the addition of agreements to create portion packs for the Keurig with companies such as Starbucks, Dunkin Donuts, and Newman’s Own helps set them apart from the competition (Invest in the Markets, 2011).
Scott and First invested their collective life savings of about $17,000 to contract a bottler and finance inventory in the first two years. The next two years saw them operating in an undercapitalized state on a small bank loan. Subsequently, in order
Volume decreased for the first time in over twenty years in 1975 by four percent, during that same time Coors started to push out further in an attempt to become a national brand. 1985 marked a major year for the company as it set records in volume sold and revenues from the brewing division. Between 1975 and 1985 there were major changes in the company that eventually led to the company possibly opening its second brewing facility in history in Virginia. Through these years there were many new strategies implemented to foster this growth. In this paper I will diagnose key decisions, analyze potential solutions and show the actions needed to achieve the suggested changes.
As the future growth of the industry also is shown to be positive, the company’s fundamental strategies in terms of management, employees satisfaction, cost cutting to reduce unnecessary expenditure, giving constant returns in terms of dividend, refinancing the money into for the expansion of brands not working well for the company ,tapping for the emerging markets, entering into 40 different variants show a clear indication that merger proves to be a great move for the company and beverage industry performance
Diageo is the world’s leading premium drinks company. It has more category leading brands than any other drinks company and market leadership in many of the major growth markets around the world. Diageo’s unique STP strategy has allowed it develop into a globally renowned brand with an operating profit of over £2 billion in 2005. With its headquarters in London, Diageo has experienced rapid expansion with over 80 offices worldwide employing around 20,000 workers. The firm’s recent success can be largely attributed to its efficient market segmentation and product diversification that have allowed it to meet the specific demands of its global consumer base.
The non-alcoholic beverages industry requires significant levels of infrastructure and technology, as well as large capital investments, in order to successfully compete in the market. As a result, it is considered as an industry with high barriers to entry that are difficult to overcome for new entrants. Additionally, the dominant position of the industry’s key players - Coca Cola and Pepsi - lower the threat of entry on the market as new entrants do not have the resources or capabilities to compete with these