Information about the Company
Name of the company: Nurture Inc.
Slogan: Healthy and tasty.
The name of the company refers to nature and nutrition; moreover, “nurture” is about care, development, growth, and potential.
Mission Statement: About 60% of a human’s body is liquid, about 70% of the Earth is covered by water. Liquid gives and preserves life: healthy drinking is vital for a healthy lifestyle. Healthy living includes a healthy diet and physical activities, so rehydration during exercising should be natural, healthy, and enjoyable. Our mission is to supply you with so much needed liquid; enrich your body with vitamins, minerals, chlorophyll, and electrolytes; and boost your energy with protein. Nurturing and natural wheatgrass beverages differ in taste (lemon, aloe, and honey) but use no flavorings, no sweeteners, and no preservatives. It is simply healthy and tasty.
According to Cochran, David, and Gibson (2008), “a mission statement may be the most visible and public part of a strategic plan”, and it should contain eight key components (p.28). Hence, the mission statement above describes our customers (active healthy lifestyle keepers), product (natural, healthy, and tasty wheatgrass beverages), market (beverages), technology (no use of flavorings, sweeteners, and preservatives), concern for survival (mentioning healthy diet speaks of future growth in a products range), self-concept (natural, healthy, and enjoyable), philosophy (healthy drinking is vital for a healthy lifestyle) and public image (helping people to keep an active and healthy way of life).
Wheatgrass Beverage Industry
Modern concern about a healthy lifestyle presents plenty of opportunities for natural, organic food and beverage market development. Moreover, it justifies the choice of a non-alcoholic wheatgrass beverage. First of all, the healthy lifestyle trend is already well-known; it is being actively advertised and advised in society. Besides, the wheatgrass beverage category in the market is comparatively new but already known. On one hand, there is no need for big investments for its promoting and making consumers aware of the product itself. On the other hand, this market is not yet divided among any big transnational companies, so it is still competitive for a new company. Finally, the developed market of fitness and sports centers presents a solid platform for wheatgrass beverage sales and distribution.
Kell (2015) reports that the volume of carbonated soft drinks sales “dropped 0.9% in 2014 from the prior year” (para. 1). Moreover, this “segment of beverage market has lost 1.4 billion cases in volume since 2004” during the last ten years (Kell, 2015, para. 1). The reason for such decline mainly refers to the fact that “consumers increasingly turn to juices, flavored waters, and other beverage options they deem healthier” (Kell, 2015, para. 3). Therefore, the beverage market turned to non-alcoholic wheatgrass beverages, and this segment now looks promising. According to Kell (2015), “liquid refreshment beverages volume, which includes the sale of water and other non-carbonated beverages” reported, “a 1.7% increase in volume for 2014, signaling a turnaround after a 1.6% drop in 2013” (para. 7). Hence, natural healthy drinks are winning a significant part of the non-alcoholic beverage market, and wheatgrass beverages have comparative advantages in this market.
Strategic Position and Distribution Channels
The idea of promoting a healthy lifestyle includes not only a healthy diet but also physical activity. As people experience dehydration during physical activities, liquid supply is strongly recommended in sports venues. Soft drinks and juices usually include sweeteners, flavorings, and preservatives. Water lacks minerals, vitamins, and taste. Thus, the company’s strategy for promoting wheatgrass beverage should be based on its natural ingredients for the taste (lemon, aloe, and honey) and health benefits (minerals including potassium, calcium, and magnesium; vitamins including A, C, B9, B12, E, K, and chlorophyll). Wheatgrass beverage is positioned as a healthy product because it suppresses appetite, improves resistance and immunity.
The main competitors of the company are producers of wheatgrass beverages as NutriBlade, Velu, and Alo. These companies, though, are mainly targeted on online sales: Velu and Alo via Amazon.com and NutriBlade via direct online sales.
Consequently, fitness and sports centers serve as perfect distribution channels for Nurture Inc. During active physical exercising people should drink every 5-15 minutes for rehydration. Thus, fitness and sports centers that share the same values of a healthy lifestyle can become the company’s partners in reselling the product. Crunch IP Holdings LLC, for example, states in its philosophy, “We are nurturers. We seek only to encourage, empower and entertain” (History & philosophy, n.d., para. 1). Crunch has 31 centers in 14 states including California, Connecticut, Florida, New Jersey, and even Puerto Rico. Crunch encourages partnerships with companies that share the philosophy of a healthy and enjoyable lifestyle. Tasty and healthy Nurture wheatgrass beverage perfectly fits in.
Risks
Firstly, Nurture Inc. can face business risks connected with the business environment because it operates only in the United States. Hence, the company can suffer from negative trends of economic recession in the country. Besides, the decline in the sports industry of resellers can significantly decrease the sales of the company. Regulatory risks for Nurture Inc. imply changes in laws and policies in the food and beverage industry in the United States. Geographical diversification and extension of the business to international markets can minimize business and regulatory risks.
The company can also experience operational risks in terms of warehousing, shipping, irregular supplies of wheatgrass and other materials, breakdown of equipment. Improvement of the management system, implementation of innovative and problem-solving management programs can help the company to mitigate operational risks.
SWOT Analysis
Strengths
The developing segment of healthy and natural non-alcoholic beverages, absence of entrenched competitors, a winning formula of the healthy and tasty product, and strategic cooperation with innovative, healthy style oriented sports venues speak of great potential for Nurture Inc. The company’s philosophy of a healthy and enjoyable lifestyle is shared by all the team members, which will stimulate their performance.
Weaknesses
Lack of experience of the young management team; possible operational problems with production, shipping, and warehousing of the product; current economic recession in the United States present the possible difficulties Nurture Inc. can face. The company is also liable to a considerable number of food and beverage industry regulatory requirements for producing, packaging, labeling, and distributing the product.
Opportunities
Consumers in the United States and all over the world become more health-conscious and turn to a healthy lifestyle. Thus, Nurture Inc. can occupy this competitive niche since its tasty wheatgrass beverage is rich in vitamins and minerals. Moreover, the strategic plan of Nurture Inc. is to use extended distributive channels of different sports venues. Consequently, the company can enter the international market of the segment after winning its share in the domestic one.
Threats
Although the continuation of economic recession in the United States can pose difficulties for any segment of the market, it creates additional challenges for a new company to win its market share. Economic instability cannot stimulate new partnerships. It is also possible that established and large carbonated soft drinks sellers restructure their business and enter the new market of healthy drinks. Hence, they can win a large segment of the market with the help of their marketing and managing experience and developed distributive channels.
References
Cochran, D. S., David, F. R., & Gibson, C. K. (2008). A framework for developing an effective mission statement. Journal of Business Strategies, 25(2), 27-39.
History & philosophy. n.d. 2015. Web.
Kell, J. (2015). U.S. soda sales dropped for the 10th straight year in 2014. Fortune. Web.