Levto Company Analysis Paper Example

1.0 Executive Summary

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The Company

Levto Company is a proposed limited liability partnership co-owned and managed by Levis and Tony, both who live in Huntsville region. The company seeks to venture into the beverages market and specialize in the manufacture and distribution of Booster energy drink. The primary purpose of the company is to produce an alcoholic-free beverage drink that improves the mental and physical health of all demographic categories in Alabama-Huntsville region. Energy drinks constitute one of the fastest growing niche markets with many consumers, young and old, consciously choosing energy beverages due to their health benefits.

The Companys Mission

Levto defines its mission as incorporating functional quality and innovation into becoming a leading manufacturer of a reputable energy soft drink. Levto is committed to producing quality, healthy energy drink products that vitalize the brain and the body. Its assurance of the highest of the highest standard is the footing of our customers' trusts in the Booster energy drink

Products and Services

The company seeks to manufacture and distribute Booster energy drink - a natural, cost-effective and functional quality beverage that contains a greater part of diverse health nutrients and the right amount of vitamins that are essential for both physical and cognitive human health.

Marketing and Sales Strategy

Levto differentiates itself ion marketing by emphasizing the health benefits of its Booster energy brand. The company intends to design and implement an integrated marketing communication (IMC) program, which will encompass social media advertising and promotion, online marketing campaigns and channels, mass media (television) advertising, free sampling, trade shows and exhibitions, special corporate events and event sponsorship. Equally, the will adopt a multi-channel approach to selling Booster energy drink through distributors, wholesalers and retail outlets, supermarkets and multiple convenience stores, online sales websites, college canteens and cafes, site corporate vending machines, and special events.

The Competition

There exist stiff competition in the energy drinks niche in the local, national and global market. Competition diverse and uneven with a few dominant market players like Red Bull, Monster, and Rockstar accounting for over 70% of the global market share, besides adopting aggressive marketing strategies. Booster energy drinks will maintain its competitive edge against customers by differentiating itself as: a low-calorie, alcohol-free energy drink that keeps consumer healthy, provides instant physical and mental stimulation, suitable for all demographic categories, cost-effective, eco-friendly Packaged, and socially responsible.

Target Market

Levto is set to establish its operation in Huntsville, Alabama, which holds a population of 190,000 and over 20 grocery stores giving them a good customer and marketing and distribution base. The company targets all demographic categories particularly students (youths), athletes, people involved in manual work, travelers and those who engage in adventures and hikes.

Management

The co-founders and managers bring vast experiences in the soft drink industry. In addition to holding an undergraduate degree in food production, Lewis has worked as a manufacturing and bottling supervisor at Red Bull. Equally, Tony has a masters degree I business administration besides having a track record in marketing and promotion at Monster. Having worked as a consultant and employee for several start-ups, Linda brings essential financial experience that will help Levto gain footage faster.

Operations

With inception in August 2017, Levto will establish manufacturing and bottling plant in Huntsville. It will use just-in-time inventory system. It will recruit and contract suppliers from the local community. The company will conduct comprehensive market research, implement cost-cutting strategies and seek low-profit margins and utilize organizational control process to keep everything on track.

Stage of Development

Levto is still in its inception stage to be established in August 2017.

Financials

The financial strategy for Levto is to revamp investments into operations in the course if the first three years of operations. The company is expected to start making significant margins within the next three years, with annual revenue projections for the first three consecutive fiscal years projected at $352,000, $730,000 and $998,000, respectively.

Fund Sought and Utilization

At the moment, Levto is seeking $150,000. This money is intended to be invested in the expansion of operations, particularly introducing new products, hiring and training current and new staff, revamping supply chain and marketing activities.

2.0 Company description

Levto is a proposed energy drink company that will be co-owned by Levis and Tony, who live in Huntsville region. The company seeks to venture into the beverages market and specialize in the manufacture of Booster energy drink a natural, cost-effective and functional quality beverage that contains a greater part of diverse health nutrients and the right amount of vitamins that are essential for both physical and cognitive human health.

The primary purpose of the company is to provide a non-alcoholic beverage drink for everybody that helps in improving the overall health. The idea of Booster energy drink was conceived out of the increased demand for healthy, quality energy drinks in the region since individuals get involved in jobs that require a lot of energy daily and need to boost their energy.

Overweight and obesity are increasingly becoming serious health concerns worldwide as they increase the risk chronic illnesses like type 2 diabetes, heart disease, and hypertension. According to the National Institute of Diabetes and Digestive and Kidney Diseases (NIDDK), over two-thirds (68%) of US adults suffer from overweight or obesity, with more than one-third (35.7%) and more than 1 in 20 (6.3%) considered to be obese and extremely obese, respectively (Flegal, Carroll, Kit & Ogden, 2012; Fryar, Carroll & Ogden, 2012).

The company seeks to open a manufacturing plant in Huntsville, and then the brand will be distributed to target consumers in Alabama and throughout the U.S. market. The start-up capital for the business venture will be generated from the two partners personal savings, then they will pursue other start-up financing options like bank loans.

The firm will be started small and allowed to gain footage in the beverage market gradually. However, the co-fathers are more interested in carving their own market niche by delivering unique and quality offerings. As the business grows, the business will open more manufacturing and bottling plants to increase its penetration into and share of the U.S. beverage market. The firm will start with a small team of employees (less than 10 workers) which will be increased as demand for more human resources increases. This strategy will help us keep our start-up costs to the minimal.

2.1 Company Mission

To incorporate functional quality and innovation into becoming a leading manufacturer of a reputable energy soft drink.

With a focus on vitalizing the brain and the body, we strike to create a company that quickly achieves profitability and sustains the attractive rate of return for the enterprise. Notably, our assurance of the highest of the highest standard is the footing of our customers' trusts in the Booster energy drink.

2.2 Company vision

The vision of the company is the leading manufacturer of the number one energy drink in the United States.

2.3 Core Values

The core values of Levto Company are engraved in the companys established standards of corporate governance and ethics, which offer direction to the way in which individuals and the entity as a whole conduct its business. The Code is knightly woven with its vision and mission which the business remains committed to inculcating their core values into business actions and activities to reward their customers. The core values include:

Abiding by the law

Taking care of their members

Taking care of their employees; and

Respecting their vendors

2.4 Company slogan

Energy on the Go, Just for You!

The drink aims at boosting individuals energy every time glucose level goes down during mental and physical activity. According to the United States Census Bureau, residents living in Huntsville City, Alabama region are working class, and they spend a lot of energy while at work. As such, the energy drink will keep them active and more motivated to do their job

1.5 Business objectives

Short-term objectives Long-term objectives

To ensure people in Huntsville consider Booster as their energy drink of choice

To make the Huntsville community aware of the health benefits of the product the firm offer

To hire and train employees on improved beverage production practices

Start making significant profit

Create and enhance advertising of fair-trade and organic beverages To establish reputable brand image

To launch a new product after the second fiscal year of operation

To achieve $150,000 turnover by second fiscal year of operation

To command 20% share of the US b market after four years

To have no salary/wage arrears

3.0 Industry Analysis and Trends

A critical analysis of the soft drinks market reveals significant trends in both the demand and supply sides. Insights into the supply side of the soft drink industry show that competition is rising in the soft beverages niche; a considerable number of soft drinks companies are going global; most of them are embracing digital technology and e-selling (Future Market Insights, 2017; Transparency Market Research, 2016). Sports and energy drink industry have transformed from being a mere niche product to become one of the rapidly expanding product categories in the global soft drinks market. This phenomenon change is attributed largely to an increasingly evident consumer concern and focus on health and fitness (Basu, McKee, Galea & Stuckler, 2013; Bigliardi & Galati, 2013)

On the demand side, consumers are increasingly demanding health drinks; quality assurance, and cost-effectiveness (Heckman, Sherry, Mejia & Gonzalez, 2010). Many beverage consumers across demographic categories are increasingly turning toward energy drinks that offer them health benefits. This niche attracts both young and old who are convinced that these beverages will keep them healthy and active. This trend can be depicted in the prevalence of diabetes, overweight and obesity among other chronic illnesses associated with high-calorie drinks. As a result, consumers are consciously cutting down on their intake of dominant sugar-sweetened brands across the international market (Basu et al., 2013).

As the demand for aerated beverages heads for an eminent drop in a considerable number of major markets of the word, the time is ripe for energy drinks to make a visible mark not only in...