Orchid Teas Company description and SWOT Analysis

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Company description and SWOT Analysis

Student’s Name

Institutional Affiliation

Company SWOT analysis

Company Name: Orchid Teas

Orchid Teas is a non-alcoholic beverage that has been designed and produced a series of researches, testing and analysis, in order to give the most refreshing and replenishing feeling to sport enthusiasts, before, during and after the exhausting work-outs, game or exercise. It is especially unique in content from the fact that it is non-carbonated as well as not an energy drink. It is therefore fit for consumption by all ages. There are three broad categories of orchid teas; four categories that are flavored, three categories that are iced-Tea and three categories that are kiddy teas. The first category targets the older generation that have a dislike for drinking water and thus would have preference for flavored tea. The second type targets sports men and women while the last category targets children whose parents want to avoid carbonated drinks for their children in the game leagues. The product lines are the

Significance

  • Raspberry, cranberry, strawberry and Kiwi teas.
  • Traditional, green and lemon teas
  • Mint pomegranate and Lipton tea

Orchid Tea stands out among other types of tea from the fact that it can be consumed by people with different health conditions from the fact that it is mild and contains no chemicals that could cause harm.

Mission statement

Our mission as Orchid Teas is to develop a beverage drink that meets the desire of different health conditions. That is less harmful to any user in any state of health. Orchid Tea is poised to give a refreshing feeling to the users apart from satisfaction, as well as improving their health.

We aim to involve a group of health experts I doing more research on the product in a bid to refine it and increase the health benefits as well as the refreshing effects that come with the use of the drink. Our aim to serve our customer with a beverage drink that covers all their desires. We aim to incorporate high standards of services throughout the processing and distribution process in a bid to meet the standards promised to our customers.

Trends in non-alcoholic industry

The non-alcoholic beverage industry is made up of both the carbonated and the non-carbonated drinks. Orchid Teas focuses on non-carbonated beverages due to the advantages that are associated with them. There are a number of dangers that are associated with the use of carbonated beverages, this include the dangers of esophageal irritation, gastric reflux and irritable bowel syndrome (Wilson, Wilson & Temple, 2013). The main objective of Orchid Teas is to come up with a beverage drink that is inclined at improving the users’ health and minimizing damage. The beverage industry has recently been involved in the shift from alcoholic to non-alcoholic beverages in a bid to cut down on the consumption of alcohol. However, there is another further shift from to the use of non-alcoholic non-carbonated beverages in a bid to further increase the health benefits.

From the graph above, the projected consumption trend of the non-alcoholic beverages is seen to be higher than it is currently. This change in the trend is attributed to the fact that there has been an increase in the accessibility to non-alcoholic drinks as well as the reduction in the regulation of consumption. However, there is also a further shift to the consumption of non-alcoholic and non-carbonated drinks due to the increased health awareness among the world population (Benk, 2015). Users are today demanding for nutrition-oriented products which have greatly promoted the use of non-carbonated non-alcoholic products.

Growth rate of non-carbonated beverage industries

Thanks to the current shift and inclination towards healthy products, the rate of growth of non-carbonated beverage companies is seen to increase annually. According to BBBB, the growth rate of non-carbonated beverages is said to be growing as of 5.5 percent per year. This gives great of Orchid Teas since the products produced fall in this category and thus an illumination on the customer base (Ashurst, 2016).

Distribution channels

The main mode of distribution that would be adopted by Orchid Teas is through suppliers to the distributors who will take them to the retailers and consumers. Orchid Teas will also have a separate bottling facility next to the manufacturing company that will be in charge of bottling the various lines of products produced by Orchid Teas. From the bottling facility, the products will then be supplied to the distributors who will disseminate them to different retailers as well as consumers. The main reason behind the choice of this mode of distribution is to reduce cost of distribution as well as the time.

The mode of distribution will also consider the different product lines available at the plant. In this regard, specific distributors will be assigned to a specific product line. The analysis of the performance of the product of the market will be based on the analysis brought in by the distributors.

Strategic position

The location of Orchid will be based on the mode of distribution, in this connection, since the distribution of final products will follow a chain of manufacturer, supplier –distributor to consumer, the main factor in positioning of the company will be based on the availability of raw materials. The company will be located in the outskirts of a town where there is a higher possibility of accessing the raw materials from the farmers which reduces the cost of transportation.

Possible risks

Whenever a new company is established in a place, there are several risks that come along the way. This is not exceptional for Orchid Teas. There are a number of risks that we as a company may come along. These include:

Changing rules and regulations

The laws of the land are dynamic where the old ones are constantly phased out and new ones introduced. Orchid Teas being a food industry, the laws guarding food industry are dynamic from the fact that there is direct involvement with human life. In this regard, there might be risks that might come with regulations on the types of chemicals to use in the production process, acquisition of permit to operate food industry, all of which might limit the normal and smooth operation of the company.

Another risk could be human factor risks

This is mainly on the type of employees to work in the company. There is need for highly qualified workers in a bid to meet the standards promised to our customers. There is however uncertainty in the availability of workers with expected qualities.

The market risk

This being a product that has not gained popularity among users, there is high uncertainty on whether or not the product will get a ready market in the local area as well as internationally.

SWOT analysis

In a bid for us to determine the viability of this venture, we carried out a SWOT analysis, to evaluate the strength, weaknesses, opportunities that might present themselves in the course of the production process.

Strengths of Orchid Teas

Suitability for all ages

As outlined earlier, Orchid Teas is made in three main broad categories which make the product lines. In this regard, the product favors consumers of all ages and preferences.

Health benefits

Orchid Tea is a non-alcoholic as well as non-carbonated beverage which can be used by users in different health conditions. As highlighted earlier, there are many health risks that are associated with the use of carbonated as well as alcoholic beverages. The use of Orchid Teas is thus a step in averting some of these health risks.

Weaknesses

Initial cost

The initial cost of establishing Orchid Teas is likely to be high since there would be the need for setting up laboratories for the chemical testing of the various ingredients that would be used in the manufacture of the final product. This is in addition to the main factories that would be involved in the manufacture and final processing of the raw materials to a final product. The initial cost will also involve the establishment of the bottling facility which further presses on the finances.

Opportunities

The world is today moving towards less toxic products and those that add more value to their health, thus the increased of herbal products. Orchid Teas is a natural product made from ingredients that are locally obtained. In this regard, the product stands a chance to attract many users from the fact that it is a herbal product that is scientifically proven to have beneficial values to their health. The product is therefore likely to have a larger market both locally and internationally, with proper marketing strategies.

Threats

Presence of other competitors in the market

The idea that the world is moving towards products that improve their health is a widely known fact. In this regard, all companies are in the race to improve their products through inclusion of health benefits in the ingredients. Beverage companies are today focusing their efforts in identifying ways in which their can develop their products using less toxic products, with the inclusion of products that are less harmful. These companies may pose competition to Orchid Teas.

Despite the risks and the threats in the market, Orchid Teas aims at setting high standards of the services delivered and well as producing high quality products in a bid to minimize in the completion that might be in the market. In compliance with the law, we intent to evaluate more before establishment of the company, the main requirements, in a bid to establish the likely changes that might be made in the future.

References

Ashurst, P. (2016). Chemistry and technology of soft drinks and fruit juices.

Benk, E. (2015). Requirements for fruit juice beverages, carbonated and non-carbonated soft drinks and other non-alcoholic beverages.

Wilson, T., Wilson, T., & Temple, N. (2013). Beverage Impacts on Health and Nutrition.




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