Columbia Roxx Company in the Beverage Industry

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Table of Contents

Executive Summary
SWOT Analysis
References

Executive Summary

Company Name

The name of the company should be changed to Columbia Roxx. The name has been suggested due to several reasons. First, the name echoes where the drink is coming from and will resonate with a specific group of people. Secondly, the name “Roxx” has been retained to highlight the best way to serve the drink. Thirdly, the company targets a regional market. In turn, the name suggests an inter-regional reach.

Mission

Roxx Water Company produces sparkling water which comes in specific flavors that target different consumer needs.

Vision

The company focuses on being a leading regional producer of flavored sparkling water. Quality, customer satisfaction, and strong corporate governance are the pillars of that inspire Roxx Water Company in its bid to climb into high echelons in the beverage industry.

Product

Roxx Water Company is a company that produces a line of sparkling water. The company products come in a variety of flavors, which range from vanilla to strawberry. Strawberry is the company’s signature flavor.

Marketing Methods

Roxx Water Company will rely on both digital and traditional (tradigital) marketing methods to improve its market share. Tradigital marketing methods are pegged on digital and traditional marketing methods. The former will involve using social media platforms and a fully customized company website that will be on the first page of the Google search engine. Traditional methods of advertising that will be employed include TV and radio ads, billboards, and posters.

Strategic Position

The best strategic position for Columbia Roxx is the low price strategy. To implement the strategic position, the company should revise the prices of their drinks. Currently, the pricing of the Columbia Roxx is higher compared to those of competitors such as Coca-Cola.

Beverage Industry Trends

The bottled water industry is a fast-growing industry and has grown by 6.4% in the last two years. The increase translates to 15 billion US dollars, and according to forecasts, the beverage industry is set to increase even further by 2020. As of 2016, bottled water was listed as the 2nd largest beverage category after carbonate drinks concerning sales volumes and revenue generated by leading industry brands (Statista, 2016).

The stated figure estimates that each person consumed 36.3 gallons. Further, analysts have predicted that shortly, bottled water will replace carbonated drinks such as soda in the not so distant future because most consumers consider bottled water as healthier alternatives to other forms of beverages (“Bottled Water Market,” 2016). Hence, bottled water is slowly overtaking the carbonated soft drinks (CSD) industry.

Methods of Distribution/User Reach

Roxx will employ three methods of distribution. The first process is the Direct Store Delivery system (DSD), which will involve the movement of the products from Columbia to the company’s stores in the North American market. The second method of distribution is customer warehouses, while the third mode of shipping will be the distributor networks.

Risks

Strategic risks – these risks will be mitigated by continuous revision of the strategic plan to include the different expected challenges that are affected by the industry. In so doing, the company’s production activities will evolve with the industry.
Regulatory risks – these risks will be mitigated through the adoption of the green gas emission and the purchase of the required emission permits.
Operational risks – The electricity fluctuations interfere with production activities, and the risk can be mitigated by securing other forms of power, such as solar power.

SWOT Analysis

Strengths

Strong company corporate governance and culture

Roxx will have reliable top management that will be complemented by an experienced board of directors. More importantly, the corporate culture will provide the employees with a positive and enriching environment, which translates into high rates of productivity and desirable professionalism.

Good company-customer relationships

Customers are the pillars of the company. Thus, Roxx will ensure that their needs are at all times met.

A reliable company brand is a critical cog of Roxx Water Company

This brand is a result of quality products that satisfy the target market’s needs.

Cheap and readily available labor in Columbia

This helps reduce the costs spent in production, thus, improve the company’s revenue generation.

Weaknesses

Revenue

Lack of sufficient income to implement all the company’s goals and objectives.

Human resources

Limited employee base which reduces the level of efficiency in the company and affects the rates of production

Shipping

High costs of shipping products from the production base in Columbia to the North American market. The North American market is instrumental to the company, and moving the products to this market involves a series of costs while significantly inflate the value of operations.

Opportunities

African and European markets are accessible to the company

The company has an opportunity to expand into these markets. Asian markets are also available, and this presents Roxx with a more significant target market ready for the taking.

Labor

The cost of labor in Asia, Africa, and Europe is relatively less than in North America. Penetrating these markets will, therefore, be cost-friendly.

Threats

Competition

The high levels of competition from established industry brands like PepsiCo and Coca-Cola. These two companies have a share of almost 50% of the beverage industry, which implies that Roxx faces a great challenge.

Political instability

The presence of rebels that agitate for the nationalization of the country (Columbia) lands profiles Roxx (“Overseas Business Risk – Colombia,” 2015).

References

Bottled Water Market. (2016). Web.

Griffin, D. (n.d). Types of Business Risk. Web.

Overseas Business Risk – Colombia. (2015). Web.

Projected growth of global beverage sales from 2011 to 2016. (2016). Web.

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