The paper “ Fountain of Youth Company - Promising Sales Trends for Health in the Market" is an affecting example of research paper on marketing. Foundation of Youth is a drink manufacturing Company that specializes in the production of bottled water, juice and soft drink in Australia. Under the leadership of Ms. Drinkwater, the company is divided into four main departments of Sales and Marketing, Administration, Production, and Distribution. The company has identified a market opportunity in the production of Acai berry and beliefs that it will help increase the company’ s product line.
This report is meant to help the Foundation of Youth Company to make appropriate strategic decisions concerning the new product development. Company’ s objectives To reduce the cost of advertising and promotion on Juice, water and soft drink in the next financial year To increase the level of production by running two eight hour shifts in a day To improve the distribution of finished products to the target customers in order to reduce complaints To reduce the cost of maintaining a vehicle in the company and adhere to environmental sustainability To increase its product line with products that will meet the current needs of customers who are interested in healthy products SWOT Analysis The SWOT analysis is meant to help Fountain of Youth determine its strengths and weakness as well as the opportunities and threats in the environment in which it operates.
After identifying these factors, the Foundation of Youth will be able to develop appropriate strategies that will help the company build on its strengths, reduce the weaknesses, make good use of the opportunities and counteract the threats. The strengths as identified in the background information originate from within the company while the opportunities and threats emerge from outside the company. Strengths Production of quality products as indicated by a fall in fault rate Strong customer base Well known company in Australia Automated production line Weakness High operational costs (labor and electricity costs) Reduced rate of production Poor channels of distribution of finished products Inability to conduct continuous product innovation Opportunities New product development (Acai berry) Customer loyalty The strong customer base for bottled drinks Threats Changes in customer needs and behavior Existence of rival companies Possible lawsuits Reduced orders for soft drink products PEST AnalysisFountain of Youth has to understand the external environment in which it is operating so that it can conduct its business in accordance with the requirement by the forces in the environment.
Political, economic, social and technological considerations are important for the success of Fountain of Youth, and as indicated below, the company cannot operate without their interference. Political factorsThe Fountain of Youth Company will have to follow the laws and regulations set by the government. Normally, the laws and regulations established by the government are binding and all businesses have to abide by these sets of laws. The government’ s taxation policies and price determination are some of the regulations Fountain of Youth Company will have to consider when developing the Acai berry soft drink.
The two factors will help the company decide on the right price of the new product since it cannot set a price higher than that determined by the government.