Tropical Drink Ltd Analysis and Evaluation Procedures

2021-05-12 06:16:46
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Tropical Drink Ltd is a start-up company that deals with processing and distributing soft drinks to customers. It processes the juice and transports it using trucks and motorcycles that heavily rely on road transport network. Tropical Drinks Ltd offers cheaper drinks compared to its competitors. The company hires medical practitioners who run tests to check the reliability of the company to process healthy drinks for human consumption. The motto of the company is: Quality customer service. The company is situated in a tropical region which is always warm for the most parts of the year, thus bridging the gap for demand of soft drinks in the area. The company plans on creating offers to attract potential customers and retain current customers.

Executive Summary

Since the company is a startup, marketing should be one of their first priorities to improve customer base thus increasing revenue to expand their business. Tropical Drinks Ltd concentrates on the quality and price of the soft drinks. The marketing strategy should have creative ideas which break the market forces and out run competitors. The company will use mobile trucks to reach customers at ease and offer after sale services such as transporting the products to their desired destination to retain the regular customers. Tropical Drinks Ltd will create a Website that updates current and potential customers about the companys developments such as types of drinks, prices, and offers and online sales. It also plans to use online platforms such as Twitter and Facebook which hold a relatively large audience thus increasing the population that views the adverts. Old model advertising methods will also be applied such as advertising on television and radio networks. Marketing on the newspapers will also be adopted. Marketing the products will contribute to the growth of the company thus it will be assigned to imaginative and professional employees.

Situational Analysis

Internal Analysis

Tropical Drinks Ltd will have to examine the external and internal environment of the company to familiarize with the companys competence, current and potential customers and the business surroundings. The business is to process soft drinks which are consumer goods. Sells quality drinks at a cheap price to their customers which is one of its missions and plans to distribute drinks using food trucks. The marketing strategy is so far falling into place as planned. The company is surely achieving its projected goal which is to reach a large customer base with expected sales achieved and providing healthy soft drinks that refresh the body. The products are getting appreciation from the public evaluated from the sales made (Henderson, 1).

External Analysis

However, there is a stiff competition in the industry but Tropical Drinks Ltd stands out due to quality drinks and cheaper price compared to other competitors. There are companies that deal with soft drinks such as: Mexico Mejor, Loco Moco, and Habanero Juans. Only Mexico Mejor offers burritos which we still sell. It does not offer guacamole which Tropical Drinks Ltd sells and attracts more customers. Mexico Mejor has planned to lower their productivity since the sales are slightly low due to high prices of their products. Tropical Drink Ltd offers products with low prices which attract more customers to buy the drinks, hence increasing sales. Tropical Drinks has already created a brand which makes it stand out more than other competitors. Moreover, there is always a boom in sales during lunch breaks and holidays when youths who are the target niche are mostly available. The climate favors the uptake of the soft drinks since its situated in a warm tropical region. The products will be distributed to customers via mobile trucks and motor cycles which are cost and time effective compared to employing workers in a rental shop or warehouse. The company also offers after sale services which help retain current customers and attract potential customers. The company complies with the regulations set by the federal government about the food industry (Ghemawat, 1).

Objectives

The companys long term goal is to become a brand of soft drinks nationally. The short term goal is to offer healthy drinks and to double revenue in a year.

Strategies

By hiring medical practitioners who regularly check the chemical ingredients and composition of the drinks will help the company in providing healthy drinks to customers. Offering after sale services and products such as guacamole that are not offered by competitors will aid in retaining customers and attracting potential customers thus increasing sales. Providing mobile truck services and taking it closer to the consumers will help the company in improving sales and revenue. Providing lower prices than the competitors will help the company pull more customers. Creating promotions such as offering extra water to anyone who buys two bottles of juice and participating in trade fairs will pull more potential customers. Advertising in television and radio networks will publicize the companys products improving sales. By doing this, the company looks forward into achieving its short term goal (Rasmussen, 15).

Using online platforms will help the company create a brand in soft drinks achieving its long term goal. Creating a website that is regularly updated about the companys developments will increase online sales for the customers who want to do online purchases which will improve the companys brand. Social media which is mainly comprised of the youths who are the target niche of Tropical Drinks Ltd market holds a large audience. Sponsoring the social media accounts to boost viewership which increases interaction with the customers will help improve the companys brand. Utilizing search engine optimization system which displays the companys products at the top when a potential customer clicks on search engines websites will help Tropical Drinks Ltd attain its long term goal.

Execution Plans

More food trucks will be purchased whereby one costs between US $50,000 and US $200,000 to increase the supply of the products to marginal regions where hot climate prevails. Purchasing computers and employing social media personnel who will help create a brand for the company via constant advertising and interacting with potential customers online. Tropical Drinks will liaise with the federal government via marketing department to claim legal compliance to hold and participate in trade fairs. Most watched television networks will be used to advertise Tropical Drink Ltds products which will help familiarize the products to the public.

Evaluation Procedures

Financial evaluations will be done after every three months by auditors and a financial manager. Financial periods will be annually divided into first quarter, second quarter, third quarter and fourth quarter. This will help in tracking the growth rate after a short period and reconsider the companys goals if there is any discrepancy (Stufflebeam, 7). Volume of sales will be reflected in the revenue collected after every three months. Performance appraisal of employees will always be assessed after one year to keep the employees in check.

Works Cited

Ghemawat, Pankaj. Competition and Business Strategy in Historical Perspective. Harvard: MA. 2002. Print.

Henderson, Bruce. The concept of strategy. Boston Consulting Group. Boston: MA. 1981. Print.

Rasmussen, Jens. A Model of Human Decision Making in Complex Systems and its use for design of system control strategy. Santa Barbara: CA. 1982. Print.

Stufflebeam, Daniel. An Analysis of Alternative approaches to evaluation. Educational Evaluation and Policy Analysis. Dallas: TX, 1980. Print.

 

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