Company Description and SWOT Analysis (Essay Sample)

Company Description and SWOT Analysis
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Name of the Company
Haute Beverage Company will play a crucial role in satisfying consumers’ needs by availing quality non-alcoholic drinks basically carbonated and noncarbonated drinks to the clients. Our products in the market will meet health and quality requirements and at the same they will be pocket-friendly (Senker, 2012). This company will sharply focus on unveiling new product categories to the market.
Haute’s Mission in the Market
Haute’s mission in the industry is to be a leading products company in the world that focuses on convenient beverages and foods as well as being a responsible corporate citizen (Publications, 2010). We seek to provide growth opportunities and enrichment to our respected employees, our partners in business and the community we operate in. In all activities we do, we strive for integrity, fairness and honesty.
Trends in Non-alcoholic Beverages
Non-alcoholic beverages can also be called ‘virgin drinks.’ Juices, soft drinks, ready-to-drink coffee and tea, energy drinks and bottled water are some of the globally consumed non-alcoholic drinks. The major factors that greatly drive demand for non-alcoholic drinks are the changing needs of the customers and the new flavours that are being introduced in the market.
In recent years, North America has emerged to be the largest market for these beverages globally. Asia Pacific closely follows as the second largest market. However, despite these vast markets, the increasing awareness of health such as obesity has considerably reduced the demand for non-alcoholic drinks majorly in the younger population. The awareness has significantly affected carbonated drinks (Bridges, 2008).
Due to the health concerns raised, Haute will introduce Zero sugar and diet drink to meet the demand of customers of reducing calories hence catering for the changing consumer behaviours.
Distribution Channels
Haute as a company will come up with both product and geographical segments. They include the restraints, drivers, and opportunities, and supply chain of these beverage market. Average selling prices in all product segments, as well as packaging sizes, are going to be vital in the product segment (Senker, 2012). Also in product segmentation, we have soft drinks, tea and coffee, bottled water, dairy drinks and juice. By Geographic segmentation, Haute Company has chosen North America, Asia Pacific and Europe as its current market. But the company still anticipates the market size in the coming years.
Haute Company aims to be a leading beverage company in distribution channels. Once the drinks are bottled, they will be distributed through some different channels in order to reach final consumers. The most substantial channels of distribution that Haute will use are categorised as follows:
* Direct store delivery (DSD)
Under this channel, Haute will deliver products directly to retailing stores. Through DSD, Haute will be in a position to merchandise with concentrated visibility. This channel is going to serve perfectly those products that often require restocking and are sensitive to both marketing and promotions (Publications, 2010).
* Customer Warehouse
Among the three distribution systems, customer warehouse is relatively less expensive distribution system (Publications, 2010). Those products that are less perishable and fragile having lower turnover, and most importantly not purchased impulsively by consumers.
* Third-Party distributor networks
Haute will availing their products to businesses, restaurants, stadiums and schools through the third-party food service as well as vending operators and distributors.
Types of Risks Involved
Just like other globally established non-alcoholic drinks manufacturer, Haute will face the same risks they face. The challenges might range from regulatory risks, legal risks, and dependency on third party distribution (Bridges, 2008).
To start with, legal risks might in one way or another hamper Haute Beverage. There has been some litigation in the past arising due to serious health concerns or even worse, deaths. Those health issues and deaths were caused by some of major non-alcoholic drinks. As a result of these, the companies involved were seriously exposed to financial costs and a serious defamation of their image and reputation.
The regulatory risks have also affected these beverage companies since majority of their products are under the regulations of Food and Drug Administration (FDA) Currently, there are no restrictions imposed by FDA on limit of caffeine in energy drinks. However, this regulation body is under pressure from organizations and health experts to ensure they meet this requirement (Publications, 2010). An example of such organization is CSPI (Centre for Science in the Public Interest). This scrutiny on energy drinks has made the health experts want attempt to keep kids from consuming the drinks.
Lastly, Haute should avoid overdependence on third-party distributors. Most upcoming beverages tend to over depend on the third-party entities like The Coca-Cola Company affiliated bottlers in distributing its products. Any adverse relationship changes with key distributors results into a serious impact on the business of a company.
SWOT Analysis of Haute Beverage Company
* Strengths
Haute will boast of product diversity. This will comprise of various brands that meet the market requirements. They will include both noncarbonated and carbonated drinks. Haute will strengthen due to its diversified products and hence it will not have to rely on seasonal sales and few key products that might be affected due to unpredictable changing consumer tastes (Publications, 2010). Haute will strive to realize extensive distribution channel both in the United States and around the world. Furthermore, effective advertising and marketing campaigns will be instrumental in establishing Haute in the stiffly competitive market. Lastly, through CSR, Haute will play a major role in the society through participating in obesity-fighting, education, water usage reduction and many other projec...