‘Life is Healthy’ Analysis

Life is Safe’ is a one-of-a-kind lemon juice business. According to De Chernatony (2010), there must be elements of hope, challenge presentation, and individuality in order to construct a good product name. People are directly or unintentionally exposed to the toxic side of life as a result of common lifestyle disorders, an issue that the name promises to address. Really, a consumer will be intrigued enough to learn if it is possible that life can be fully transformed into a stable state. Since the product identity is unusual in that it does not seem to contain any soda feature at first glance, the customer will want to learn more about the substance behind the brand. It is common for beverage businesses to contain the words ‘drink’, ‘beverage’ and ‘juice’ in their company names (De Chernatony, 2010). As such, if this company name contained any of these three words, a potential customer would dismiss curiosity at first glance, thinking that it is just another common drink.

Life is Healthy first attracts potential clients because of the word ‘Life’. Citing market attitudes, people are concerned about their lives (De Chernatony, 2010). Health insurance is one of the first aspects people consider when applying for a job. People sit down to talk about life every day. The word life is catchy and appealing. Better still is the word that follows, “Healthy”.

Mission Statement 1: To Offer Healthier, Longer Life

With Hawaii leading at 81 years and Mississippi trailing at 74.9, other states in between, the average life expectancy of an American is 78 years (Adler & Stewart, 2010). Who would believe that life could be longer and healthier? According to Adler & Stewart (2010), many people do not want to surpass particular age groups, the reason being that they would be unhealthy and suffer instead of ‘living’. ‘Life is Healthy’ presents the solution to this health problem. With this product, people will now want to live longer because they will remain healthy even at old age.

The average price of coffee is about $ 1.5 depending on the size, yet the addictive drink (coffee) is not a healthy one (De Chernatony, 2010). Life is Healthy lemon drink is distinct from other juices in that it is served hot or cold and at only $ 1. It is made from fresh lemon juice squeezed into hot water, with very little orange juice added, just enough to drive away the bitter lemon taste.

Mission Statement 2: To minimize lifestyle diseases

Diabetes and heart disease are some of the most common lifestyle diseases (Adler & Stewart, 2010). Lemon contains flavanoids, plant pigments that have antioxidant elements, hence preventing cell damage. Moreover, the fruit has potassium as well as vitamin C that significantly reduce the chances of getting heart diseases.

Mission Statement 3: To refresh our clients

The product is not only aimed at enhancing health, but is also meant for refreshment purposes. Hot lemon water has a refreshing tangy taste and can be consumed even during winter. Lemon’s uniqueness even makes the product one of the juices that can be served both hot and cold. Non alcoholic beverage can be categorized as juices, hot drinks or cold drinks. ‘Life is Healthy’ belongs to all these categories.

Trends in Non-Alcoholic Beverage Industry

Most non-alcoholic beverage customers prefer health consumptions (Adler & Stewart, 2010). The world is moving towards health foods. For instance, one of the companies that has realized and responded to this trend is coca-cola which has introduced Coke-Zero, ‘the sugarless Coke’.

One of the reasons I chose ‘Life is Healthy’ is because it can fit into both hot and cold juice categories. This would present consistent sales, irrespective of whether it is winter or summer. It would also appeal to clients of these two categories (hot and cold beverage), hence widening the market base. Secondly, unlike other fruits such as mango and avocado, lemon does not go bad easily. Citing advantages of economies of large scale production, it can therefore be produced in mass and stored. Thirdly, most clients prefer health drinks, a niche which ‘Life is Healthy’ has curved. In addition to these aspects, after squeezing out the juice from lemon, the remaining lemon content can be used as compost manure. This exhibits good corporate social responsibility to the environment. Strategic Position

Strategic positioning refers to the positioning of a firm’s unit or product with regards to the future while at the same time considering the dynamic environment. ‘Life is Healthy’ will take the opportunity of being a socially responsible brand to market itself. The company is socially responsible in two major ways. First, its product is aimed at eradicating lifestyle diseases by introducing a drink entirely made from natural products.

Secondly, its by-products which are the remaining content are not only bio-degradable but can also be used as compost manure. This strategy that is visible through these two scenarios will be a marketing avenue for ‘Life is Healthy’, enabling it to gain a competitive edge over other beverages. Moreover, the government has been keen to offer subsidies to start-ups that engage in corporate social responsibility.Distribution Channels

A distribution channel is the path taken by goods or services from the production point to the consumers (Boone & Kurtz, 2013). Direct distribution occurs when goods reach consumers directly from the producer. ‘Life is Healthy’ assumes a direct business-to-customer distribution channel because salesmen who are employed by the firm will supply the product to clients. A restaurant will also be set up where customers can order directly and enjoy the juice at sitting point. The product will be customer-tailored with level of orange sweetening content regulated as per customer orders.

The small profit margin per product at the start of production cannot enable the company to open up distribution branches at the initial stages. This is the rationale for use of salesmen to distribute the product at the beginning stages. However, with time, the profits will grow proportionately with market growth due to the mass production brought about by the potentiality of many consumers. As such, the company will be able to open up distribution points and even act as a supplier to supermarket chains.

Business Risks

Regulatory risk

Hazard Analysis and Critical Control Points (HACPP) law requires a beverage business to establish complete record-keeping procedures (Pierson, 2012). This includes full accounting records which require technical knowhow. The start-up cannot afford to hire an accountant to do its book-keeping. However, to mitigate this risk, one of the salesmen will undergo business and taxation record-keeping and double up as the accounts clerk until the business is grown enough to hire a full accountant.

Intellectual property emulation

The second risk is that of competitors mimicking ‘Life is Healthy’ formula. Once the product sales elevate, rival juice producers will copy its formula to compete it. As a result the firm will advance to intellectual property protection as soon as it starts to penetrate the market since it will also be a financial giant at that time.

Operational risk

In terms of operations, the risk that exists is that of the company’s salesmen becoming fraudsters and selling to customers at higher prices when they feel unmotivated yet one of the strategies of ‘Life is Healthy’ is cost leadership. On this issue, the firm will offer additional bonus to salesmen who work hard on top of their salary as a reward scheme.

Figure 1.1: SWOT Analysis

Strengths

Corporate Social Responsibility

Cost Leadership

Health Marketing (market trend)

Weaknesses

Few staff thus slowing particular market segments’ penetration

Opportunities

Subsidies

Diversification

Threats

Competition

Adapted from Davis, B., Lockwood, A., Pantelidis, I., & Alcott, P. (2013). Food and beverage management. Routledge.

Corporate Social Responsibility is one of the strengths of the company. It not only sells health products to enhance the society’s welfare but also practices an environmentally friendly business. Moreover, the company also prices its juice at $ 1. This is lower than its beverage substitutes, hence depicting a cost leadership strategy.

In addition to these strengths, the modern market trend is that of healthy products. Lemon which is the major ingredient of ‘Life is Healthy’ has several health merits. Improving skin texture, weight loss, Vitamin C source, fresh breath, aiding in digestion and preventing kidney stones are some of the health benefits of the fruit (Penniston, Nakada, Holmes & Assimos, 2008). These medically proven factors will be cited when marketing the product.

Weakness presents itself in the company in that as a start-up, it will have few staff and might not penetrate all market segments. For example, the company does not yet portray digital marketing which is one of the forums for market growth. This depicts a weakness in the firm.

Government normally offers subsidies to start-ups who practice corporate social responsibility (Davis, Lockwood, Pantelidis & Alcott, 2013). ‘Life is Healthy’ qualifies for this request. The company will take this opportunity to minimize its production costs and use the saved expense to enhance product quality. There is also the opportunity of diversification. The entity can produce a range of products such as lemon tea, which would still be in line with its business objectives and would see it diversify its market.

‘Life is Healthy’ is venturing into a market which already has competition. However, it has differentiated its products from its substitutes to curve its own unique market niche. For example, instead of using sugar to enhance taste, it uses orange juice, which is yet another health product in the contemporary health consumer world.

References

Adler, N. E., & Stewart, J. (2010). Health disparities across the lifespan: meaning, methods, and mechanisms. Annals of the New York Academy of Sciences, 1186(1).

Boone, L. E., & Kurtz, D. L. (2013). Contemporary marketing. Cengage learning.

Davis, B., Lockwood, A., Pantelidis, I., & Alcott, P. (2013). Food and beverage management. Routledge.

De Chernatony, L. (2010). Creating powerful brands. Routledge.

Penniston, K. L., Nakada, S. Y., Holmes, R. P., & Assimos, D. G. (2008). Quantitative assessment of citric acid in lemon juice, lime juice, and commercially-available fruit juice products. Journal of Endourology, 22(3)

Pierson, M. D. (2012). HACCP: principles and applications. Springer Science & Business Media.