Essay Sample on Soft Drinks

Introduction

The business will be situated on a major city highway, the city pool, next to multiple housing developments, near schools, and parks.

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Company Summary

Industry History

Soft drinks can trace their history to the period when mineral water was used for consumption. The first marketed soft drink (non-carbonated) originated in the 17th century. They were generated from water and lemon juice sweetened with honey. In 1676, the Compagnie de Limonadiers was given the monopoly for the sale of lemonade soft drinks. Retailers would carry tanks of lemonade on their backs and dispensed cups of the soft drink to thirsty Parisians. The first drinkable man-made glass of carbonated water was made by Doctor Joseph Priestly from England (Burgemeister, 2003).

In the 19th century, designers created two technologies that eventually advanced the lives of millions. Their machineries were the soda fountain and the steam-driven espresso maker. Although the use of espresso has continued to be unaffected over the years, soda has been a curative agent in the 19th and 20th century. Capitalists like John Mathews patented different designs for what were essentially convenient mineral-water makers that utilized pressurized tanks full of carbonic acid gas. These soda jets were intended to be placed in pharmacies where an apothecary would run the apparatus, blend the pressed gas with water to create a fizzy glass to relieve the body of its ailments. In the past, late 19th and early 20th century, carbonated drinks were known to have medicinal value. It is notable that drugstore soda fountains and pharmacists tried diverse tastes and seasonings to make their fizzy potions more 'medicinal'. Distillates of caffeine, cocaine, and tobacco were constant flavors together with fruity and bitter savors. Another prominent preservative was phosphate (acid phosphate), which produced a very bitter taste. Phosphate was known as a 'revitalizing tonic' (Henry, 2018).

Carbonated drinks were used to treat certain diseases like impotence, indigestion, headaches and numerous psychosomatic conditions. Pharmacologists alleged that their fizzy solutions savored 'so good' such that people required them, whether they required them or not. Carbonated drinks introduced at the end of the 18th century and increasingly in the 1830s were a successful means of administration prescriptions; adding a limited volume of additive together with some sparkling water made medication more appetizing. It is notable that numerous well-known carbonated drinks instigated as patent medications, which were known to possess herbal and other folk remedies. Pharmacists alleged the added ingredients made medicine taste good.

Dr. Pepper is the most ancient carbonated beverage in the U.S, having been made, produced and wholesaled in 1885 by Charles Alderton, a pharmacist. It was advertised as having an exceptional flavor and initially wholesaled as a vitality beverage and a 'brain tonic'. It was distributed in Morrison's Old Corner Drug Outlet in Waco, Texas, where Charles operated. Alderton designed his own guidelines for soft drinks and found that there was a drink that was becoming very popular among the clients. In the 19th century, more than 1,500 U.S. patents were filed for either cork, cap or lid for the carbonated drink bottle tops. Carbonated drinks bottles had to endure pressure from the gas. On the other hand, inventors were attempted to invent new ways in which carbon dioxide could be retained in the bottle. William Painter made the first machine that prevented carbon dioxide from escaping (Henry, 2018).

In the 1920s, the invention of 'Hom-Paks' changed the soft drinks industry. 'Hom-Paks are similar to the six-pack beverage cartons generated from cardboard. During that period, automatic vending machines started to appear. From that time, soft drink has become prosperous up to this day.

Legal Form of Ownership

TK Beverages will be a limited liability company with shareholder participation. This structure was selected because the proprietor of the enterprise desires to bear any more liability than the capital which was granted to the company as share capital. Nevertheless, it is appreciated that operating a limited firm has more legal requirements to be complied with, than operating other forms of enterprises. In limited liability companies, the legality is determined by the individual.

Location and FacilitiesThe company will be located in New York City. Since the initial capital is high, one facility will be used at the moment. The soft drinks will be produced from that facility and then transported to various customers. As the business develops, other production facilities and bottling plans will be initiated. TK Beverages will also start with less than ten workers but their number will be increased with time. This will be an effort to save on costs. The expenses of starting up the enterprise will be sourced from the owner's savings and the deficit will be funded by a bank loan. Additionally, the rent for the facility will be financed by a bank loan and grants from friends.

Management Structure

Board of Directors

The board of directors will be responsible for overseeing the overall strategic direction and progress of the company. Some of the areas that the board will be expected to oversee include financial stability, long-term progress and operational soundness of the firm.

Chief Executive Officer

The CEO will be in charge of numerous aspects of the business. He or she will be responsible for general management, scheming, marketing and making universal decisions. The CEO will also be tasked with managing the production and logistics of the company's products. The CEO will be expected to possess a skilled ability to determine business demands and establishing a solution to solve the problem.

Brand Manager

The brand manager will be responsible for helping in the development of branding strategies prior to the launching of the firm. It will be his or her responsibility to ensure that the brand becomes competitive. The tasks such as labeling and packaging will lie in this category.

Manager

The responsibility of the manager will be to take and implement orders from the customers, advertising the brand and creating awareness. It will also be an obligation of the manager to control the quality of the products and services that customers seek in this company.

Products and Services

The TK Corporation will operate as a non-alcoholic drinks firm. It will manufacture, advertise and sell beverages which will involve sparkling drinks and still drinks like processed waters, juice and juice beverages, ready-made teas and coffees and energy and sports drinks.

Market Analysis

Target Market

TK Beverages plans to release non-alcoholic drinks in cans and considers young people aged 15-40 as the target market. Target market comprises a group of buyers who share mutual demands or characteristics that a firm decides to serve. The market segment in New York will be a classification of customers who will respond to the marketing strategies applied by TK Beverages. The market segments will be in terms of demographics (age, gender, income, and family size); psychographic (social class, personality) and behavioral (benefits, uses or reactions).

Geographic segmentation in New York involves supermarket chains, seven convenience outlets and vending machines available in places like sports centers. Demographic segmentation will involve segmenting teenage and middle-aged in terms of age groups. Income groups will be segmented regarding middle to high-class earners. Education segmentation will focus on middle to higher education achievements.

After classifying the New York market, the company will select a segment and target them. Targeting, in this case, will involve an assortment of potential customers to who TK Beverages will wish to vend soft drinks. If TK Beverages targets half of that population, profitability is likely to be realized within a short duration after entry into the market.

Industry Analysis

The beverage sector is very competitive for all the companies involved, with the largest rivalry being that from competing producers within the market. All soft drink firms have to review their strategies to deal with competitors, suppliers, buyers, auxiliary merchandises and new entrants to the business.TK Beverages will face stiff competition from various players in the beverages industry. Coca Cola and PepsiCo are the biggest rivals in this market and are internationally recognized brands that create a huge proportion of competition. Soft drink consumption has a market stake of 46.8 percent within the beverage market. Reports indicate that the aggregate market worth of soft drinks peaked $300 billion in 2004 with a market worth prediction of $368 billion in 2008. The soft drink sector is profitable with an opportunity for high revenue, yet there are multiple barriers to surpass to seize the market share. Therefore, the introduction of a new product will not affect the consumption of existing beverage products (Hackley, 2015).

In the contemporary non-alcoholic drinks market, the marketing and promotion of non-alcoholic drinks are central to the product itself. Marketing is what creates brands and brand images. Additionally, market segment...