Planning with the 4 P’s and SWOT analysis Practical Example
So, I am developing an organic juicing company. My company will have a retail presence and a franchising system based out of San Antonio, Texas. I need to establish my product, my prices, placement, and how I plan to promote the product. I also need to identify my strengths, weaknesses, opportunities, and threats. With all of this properly identified and followed, my juice company will reach my goal of $3 million in revenue for year three. Accurately describing our organic juice products will help us maintain focus and avoid pitfalls that are bound to happen during new product development. Description of a product involves the raw materials, other ingredients, packaging, how long the product can last and its expected price in the market. It is very crucial as it is the way consumers will also view the products.
They sell 16 oz. bottles of their juice blends (Farm to Juice, 2016). The price for their blends ranges from $6.50 to $8. You can choose from 14 different juice blends. They also provide a 3 day and 5 day cleanse, with prices of $90 and $185. Both Juicer Heroes and Farm to Juice provide a wide selection of bo³led juice blends. For our organic juicing company, if the product to be sold is bottles, I think we should only offer 8 oz. bottles to start. This will cut down manufacturing cost of the bottles. The pricing of the bottles will be dependent on the cost of the produce used to make the juice blends. Since cost of produce can fluctuate depending on the market shares, I think it would be wise to price bo³les at $7 to $15 dollars a bottle. When produce prices drop, we can offer sales or coupons. We should also provide at least 25 to 30 different juicing blends. According to the September 30th, 2016, USDA National Retail Report on Specialty Crops, market prices on many organic fruits and vegetables continue to drop (USDA, 2016). For instance, Kale is now at $1.82 per bound compared to $1.99 per pound last year. The lower cost of produce, reduces production cost. With this pricing plan we should meet $3 billion in revenue within the next 3 years.
Abrams, R. (2012). Entrepreneurship: A Real World Approach. Palo Alto, CA: Planning Shop
Farm to Juice. (2016). Shop. Retrieved from http://farmtojuice.net/shop