Business Plan Assignment
Illusion Food and Beverage Private Limited can be considered as a popular and emerging company, which produces food and beverage products. Quality, differentiation and diversification are considered to be three important parameters of success story of the company. The company is going to introduce new ranges of fruit juices for the target customers based on the existing demand and needs of the target customers. The juices are made of original fruit extracts. The company believes in quality. Hence, the company prefers fewer amounts of artificial flavors and higher amount of fruit extracts. In addition, the company management of Illusion Food and Beverage Private Limited prefers the introduction of the fruit juices of different portfolios in order to enhance competitive advantages within the global soft drink industry. Apart from the fruit juices, the company is also going to introduce different ranges of healthy soft drinks. The major objective of this report is to develop a business plan for Illusion Food and Beverage Private Limited including competitor analysis, situation analysis, value chain analysis, and sales and marketing plan development aspects.
Minute Maid, Tropicana, Real, PepsiCo, Coca Cola Company etc. are considered to be the major competitors of Illusion Food and Beverage Private Limited.
The above mentioned competitors used to sell fruit juices, carbonated soft drinks, different beverages and several zero calorie soft drinks. Most importantly, the companies used to sell the products similar to the products of Illusion Food and Beverage Private Limited.
Among all the above mentioned competitors, the Coca Cola Company is leading the global soft drink industry by grabbing a market share of 37 percent. PepsiCo is the market challenger by grabbing the market share of 32 percent. Apart from the carbonated and zero calorie soft drink industry, Tropicana is also an important and well recognized brand of global soft drink industry. The fruit juice manufacturer has succeeded to grab 21 percent of the global fruit juice industry.
The Coca Cola Company and PepsiCo have considered cost leadership business level approach in the business operation process in order to become successful. On the other hand, companies like Tropicana, Real etc. have adopted and applied differentiation business level strategy.
Real Fruit Juices and Tropicana Fruit Juices have been stick to their past strategies, but the Coca Cola Company and PepsiCo have considered new strategic approach. The management of PepsiCo and the Coca Cola Company has adopted the differentiation approach by introducing new ranges of healthy soft drinks products.
All of the mentioned competitors of Illusion Food and Beverage Private Limited are focused on the utilization of print media and digital media platforms to market the products.
The Coca Cola Company and PepsiCo frequently use the print and digital media activities in a single quarter. Therefore, it is acceptable that the company management of the Coca Cola Company and PepsiCo purchase the advertising rights in more occasions in a week comparing to the companies liked Tropicana, Minute Maid, and Real Fruit Juices.
Higher brand image and different types of unique product portfolios can be considered as the important strengths of PepsiCo and the Coca Cola Company. Apart from it, the differentiation approaches can be considered as the important strengths of Tropicana Fruit Juices and other mentioned fruit juices. In terms of weaknesses, the above mentioned competitors have faced challenges due to some negative impacts on the health of people.
Social and Political threats are considered to be some critical threat factors for the company management, which can affect the business growth and sustainability of the firms. It is already mentioned that the company management of the above competitors are facing different types of challenges due to some product quality related complaints. It can affect the social demand and can create political challenges.
From the above mentioned competitors, the company management of Illusion Food and Beverage Private Limited can learn about different competitive tricks. These can help in the better strategy development activities. For example, the management of Illusion Food and Beverage Private Limited can adopt different product portfolio strategic approaches to enhance better competitive advantages.
It is a valuable situation analytical tool, which will help to recognize the important strengths, weaknesses. On the other hand, the management can identify the important opportunities as well as threat factors for better future strategic approaches.
In terms of the development of the target customer group, the company management of Illusion Food and Beverage Private Limited will target people of all the demographic background. People aged between 12 and 65 will be major target customers. In addition, the company will target both male and female customers. Households, young adults, kids, married, and unmarried individuals will be targeted by the company management. In addition, the company management will target the people of middle-class, higher middle class, and upper class income group.