INTRODUCTION Healthy Potion is currently experiencing steady growth and profitability due to its success in the early stages of business development. However, as the business begins to grow out of the establishment phase it has become increasingly evident that the reliance on a single product is not a sustainable business plan. Healthy Potion requires a diversification strategy to grow their business and to ensure that it remains competitive in the long run. If successful, the implementation of this strategy will ultimately contribute to a balanced scorecard. STRATEGIC ANALYSIS Prior to formulating a diversification strategy for Healthy Potion, an evaluation of the business’ strength and position in the market must be undertaken. This is …show more content…
This will mitigate the overall instability of returns by ‘diluting the impact of failure on any single income source’ (Villagra 2005, p. 18). This opportunity is further supported by the growing trend of health consciousness in Australia which ‘is now both aspirational and mass market’ (Griggs 2013). Whilst there are many opportunities for Healthy Potion, the business must also take into consideration a variety risks emerging from external influences. One of the strongest influences currently affecting Healthy Potion is the power of suppliers. Healthy potion currently relies on a single supplier to import their concentrate from China. As the concentrate is a unique product, it would be fairly difficult for Healthy potion to switch suppliers. This means that the power of the supplier is relatively high and that the price of input is extremely volatile. It is clearly evident that the need for diversification is imminent for Healthy potion as it gives the business something to fall back on if their relationship with the supplier becomes unstable. In relation to competitive rivalry, Healthy Potion faces strong competition in the beverage market. Although it is able to separate itself from other beverages by being ‘healthy’, many larger corporations are also starting to adopt this health trend. This is reflected with Coca-Cola which geared the majority of their marketing efforts in 2013 towards the Coke Zero and Powerade Zero sugarless brand (Carey 2013). This is further
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According to recent studies, the age group of 25-40 year old males and females purchase a reliable amount of small appliance to bring in this product. A household income of $40,000 a year is enough purchasing power for a household to afford this product. Through recent studies, it has shown that cocktails are mostly popular with individuals that like to share their experience with others and go to bars and restaurants because of the specialty cocktails that are offered. The United States has been chosen as the target location because of Company G’s location.
My conclusion about the long term attractiveness of this industry after having researched this case is as follows. The industry has proven to be an extremely profitable segment to enter into, specifically for PepsiCo, who enjoys the luxury of an advanced and widespread distribution channel for all of its products. The analyst prediction of the U.S. specialty beverage market condition in 2014 is that it will grow to $23.6 billion (from $19 billion in 2009). This projection shows that despite an
Nantucket Nectars' numerous strengths have led to their success. They produce all natural products that have a great taste, have a very strong management team as well as a strong branding, guerilla marketing skills, possess the ability to exploit small, rapidly changing market opportunities, last good access to single-serve distribution in the New Age beverage market, and is the best vehicle for juice companies to expand into the juice cocktail category without risking their own brand equity. In addition, Nantucket Nectars' management team has the required knowledge and experience with the single-serve business and thus has the ability to add value to large player who wants to roll out new single-serve products.
The company’s value proposition or long term vision for the company remained constant from the start up of the company to the initial entry into the CPG market to the expansion of the school meals to the re-entry into the CPG market despite the challenges the company faced along the way. As the company expands its product lines and grows in the school meals business and the CPG market in grocery stores, as long as the brand continues to provide high quality and affordable healthy foods meal and snack to under-served communities and can mitigate against competition, rising costs and deviating from their target families, the company can retain and build a strong value proposition that reflects their long term vision. It may be that by expanding and growth that some avenues the company takes may deviate from the vision but there are many options for the company that can address under-served community needs for healthy options further than just family meals and snacks to areas like meals that address dietary restrictions and the medical restrictions that elderly people have that can be filled by the company and that will add the vision of a trusted, healthy, affordable meal option for every member of the family. This can be further achieved by investing in shared value creation that benefits all parties involved in activities like catering and event hosting and establishing urban farms. These new channels build the brand and are aligned with the long-term vision while as the same time creating economic and social value for the many communities in which the company operates. Furthermore, all these recommendations that were further described in analysis are built on the foundation that the company has built since its conception and further
Diversification has been important in the company’s growth story. Innocent is the number-one smoothies brand in the UK and in many of the European territories where the product has sold, however much of the company’s growth has been maintained by new lines as the smoothie market has become commoditised. In order to maintain volumes in the smoothie market innocent have concentrated on innovation in flavours and launched big take home tetra packs, smoothies for children and innocent thickies with probiotic yoghurt.
Launching a new flavour of an existing product has been the most common expansion initiative taken by companies in the food and beverage industry. It is a conservative approach as it usually does no require a significant
Portland Drake Beverages (PDB) had acquired Crescent Pure, a non-alcoholic, all natural energy enhancing and hydrating functional beverage. Having organic ingredients as the bases of Crescent Pure beverages made the perfect acquisition for extending the PDB organic brand to more markets. These multiple attributes made the drink an attractive product for the consumer, but the necessity to position it, sparked a debate. Some people wanted to market it as an energy drink, while others wanted to market it as a hydrating drink. The VP of marketing, Sarah Ryan, thought that although Crescent Pure fit both of these categories, there was an alternative option. The third option would be to position the new beverages as healthy drinks, this would be a broader market positioning strategy, one that a transcendent product like Crescent Pure, could fulfill. The concern was to simultaneously position the drink in the most lucrative market, while also ensuring that the drinks attributes aligned with the market consumers’ needs.
Nestlé is "the world's leading Nutrition, Health, and Wellness company" (Nestle, n.a.). To maintain this position Nestlé will implement a combination of strategies: product differentiation, low-cost leadership, and product development. The purpose of this paper is to discuss 1) the implementation plan, 2) required organizational change management strategies, 3) key success factors, budget, and forecasted financials (including a break-even chart) and 4) a risk management plan, including contingency plans for identified risks.
Coca-Cola Company has realized significant growth since its establishment to become a global leader in the marketing, manufacturing, and distribution of syrup and soft drinks. Out of the four generic strategies, the company has followed the differentiation strategy to make its products unique in the market. Its interest is to maximize the market share through the development of the most innovative products and the establishment of effective strategies to influence the customer’s decisions. In such a way, the company has integrated various strategies to ensure that desirable results are attained in the market. Its strategic choices align with the differentiation strategy in an attempt to make its products unique and meet diverse market requirements. To reduce its weaknesses, the company should consider exploiting key opportunities in the market including venturing in the packaging of water, promotion of new brands, and launching of healthy products. In particular, the vision and mission statement of Coca-Cola seems to have reconfirmed and changed in this process of company’s strategic analysis.
The threat of substitutes has increased for companies such as Coca-Cola and Pepsi due to the increased concern of health. The concentrate companies have reacted by coming out with Diet versions which have been hugely successful. The concentrate business has done very well with staying abreast of emerging trends by creating their own substitutes using their powerful name (such as water, tea, sports drinks, etc.).
The project focuses to understand the 4 P’s of Wellness products of Hindware marketed under the brand name ‘Amore’ vis-a-vis and strategize future marketing tactics for
The threat of new entry in today’s beverage market is low because of several factors. However we are only going to discuss the main points of why the threat is low in today’s market which include; High cost barriers due to the role of bottlers, saturated American market due to brand loyalty created by Pepsi and Coke, emerging markets laws and regulations, and costly risks to match consumer taste trends and preferences.
Healthy Potion (HP) is on the point of entering the diet pills market as a result of grasping the opportunity of an active demand for more healthy and safe diet pills. In order to make a marketing plan for it to maintain unceasing and efficient development in a long run, this essay examines product, price, place and promotion aspects to give an overall and detailed strategy. Firstly, the contents of marketing strategies are centralized primarily on the features and essence of product itself. Next, reasonable pricing strategies perform for the sake of gaining more profits on the basis of increasing the brand visibility in the market. Thirdly, place strategies make sure the HP diet pills have access to the target market. Finally, the
A product is anything that can be offered to a market for attention, acquisition, use, or consumption that might meet people’s satisfaction or demand (Kotler and Armstrong 2014).The healthy portion diet pill is one of the “shopping products”, which would take consumers considerable amounts of time to make the final choice. The competition among the diet supplements is quite fierce, but a new venture could still manifest the competitive advantages if it masters and utilizes the concept of the total product. The main idea is to add more customer value in each level. (Kotler and Armstrong 2014). At the core product level, the company should realize that what the customers actually want to pursue is keeping in health in a convenient way. A number of consumers intend to shape a slim figure without bearing the pains from high-pressure exercise. At the actual product level, the Healthy