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Beverages Case Essay

2106 words - 9 pages

Problems/Opportunity
The Moffats hope to see Want become a profitable and reputable
business in the near future alongside Spellbound. A lack of financial
resources has severely limited the growth potential of the company. Securing
financing arrangements is imperative for Want to increase brand preference
and see profitability in the near future. Their current marketing plan must be
altered in order for the company to look attractive to potential investors or
lenders.
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Stakeholder
The most important stakeholders are Bill and Angela Moffat. They
have invested a significant amount of time and personal savings into Want
beverages. They want to build a business that is strong and ...view middle of the document...

They provide Want with the
opportunity to produce low volume quantities, given their current cash flow
situation, and allow flexible scheduling resulting in shorter lead time. Want
has built a socially responsible image by its charitable donations to action
sports in local communities; an activity that no other energy drink
competitors offer. Another strength is the Moffats experience with their
target market and background in marketing and distribution, which was
developed through their business with Spellbound. This advantage has
helped their product gain access to markets across Canada and provides
Want beverages with the opportunity to be marketed effectively and
profitably.
Weaknesses
Want’s weaknesses are in its lack of financial and human resources.
The Moffats are operating at a highly inefficient level as they frequently
market and promote the Want product entirely by themselves as opposed to
hiring additional sales staff. This in turn takes away from their ability to focus
efforts on certain aspects of the business that ensure growth. The company
also faces a weakness in their inability to secure financing from external
5
sources. It is this factor, along with their limited sales, that affects Want’s
ability to meet the credit terms that their retailers or manufacturers require
and further limits their opportunity for growth. In addition, Want’s capacity
issues can restrict potential profits that they can make from increasing
demand.
Current Financial Position
Current financial results show the firm having negative retained
earnings of $33,304 making it extremely difficult to attract any investors.
Failure to maintain adequate inventory levels to meet demand along with
cash flow problems have put the firm in a very compromising financial
position.
Current Marketing Strategy
Want is currently using a concentrated segmentation strategy where
they are targeting a young Canadian, action sports crowd aged 14-24 years
old. They have positioned their product as low priced, providing buyers with
a distinctive taste and a unique bottle design that is convenient for sports; a
competitive advantage that its competitors do not offer.
Current Marketing Mix
Want offers an energy drink product that provides the consumer with
6
an alternative to the “mediciney” taste that is present in many competitors
products. The Want beverage offers a re-sealable plastic bottle unlike the
traditional cans sold by their competitors, the consumer does not have to
consume the whole drink in one sitting. In terms of pricing, they are
implementing a value-based pricing strategy due to the low price value that
they have on their product compared to their competitors, especially in the
bar scene. To distribute their product, Want uses an intensive distribution
strategy to get their product into as many outlets as possible, specifically in
most action sports outlets and convenient stores. For promotions, Want
promotes its...

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