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Proposed Strategic Plan for Zest-O Juices

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Paulo Sagisi

on 18 March 2015

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Transcript of Proposed Strategic Plan for Zest-O Juices

Proposed Strategic Plan for
Zest-O Juices

Zest-O Corp.
Zest-O Corporation manufactures and distributes food products. The company offers toothpastes, chocolate milk drinks, fruit sodas/carbonated soft drinks, and juice drinks/ready to drink fruit-juice beverages.
Internal Analysis
A. Nature of Business (Business Model)
B. Value Chain Analysis
C. Financial Analysis
D. Strength & Weaknesses
E. Competitive Strength Assessment
F. Evaluation of Present Corporate Strategy/ Business Strategy
Primary Activities
Inbound Logistics
Operation
Outbound Logistics
Marketing and Sales
Services
External Analysis
A. Industry Definition & Overview
B. Industry Analysis
C. Market Analysis
Industry Definition & Overview
Zest-O Corporation falls under Food and Beverage Industry, since it was being the key player in its industry has the ability to leverage its technical and functional know-how to gain some advantage.
Inbound Logistics
In producing Zest-O juice drinks, quality raw materials are needed to be secured first. Different flavors require different concentrates, that’s why in producing Zest-O juice drinks they need concentrates of the fruits: Orange, Mango, Apple, Strawberry, etc. On the other hand, refined sugar, vitamins (usually A & C), and some chemical preservatives such as sodium benzoate to prolong the shelf life of the product are also needed.
Operation
Market Analysis
Industry Analysis
1.) Driving Forces
2.) Macro- Environmental Factors
1.) Market Size / Major Players / Strategic Group Map
2.) Competitor Analysis
Driving Forces
Since Zest-O ready to drink juices are healthier than soft drinks or other carbonated drink, it targeted a thirsty health conscious individual who in a rush. As stated before most of its consumer is children, it takes advantages in soft drink by which customer can select or choose more varieties of flavors than its substitute product (soft drink).
Macro-Environmental Factors
P- Political
E- Environmental
S- Socio-Cultural
T- Technological
Market Size / Major Players / Strategic Group Map
According to the Census of Philippine Business and Industry – Accommodation and Food Activities for Establishments with Total of Employment of 20 and over, the total income earned in 2012 by Accommodation and Food Service Activities section reached PHP267.5 billion.
Competitor Analysis
A. Nature of Business
Today, Zest-O juice drinks have a total of 12 different flavors and includes in its product line fruit sodas, purees, and kitchen condiments. Zest-O Corporation commands 80% of the total market for ready-to-drink juices in the country. The company also produces popular products like the Sunglo Juice Drink, Big 250 Juice Drink, and Plus! Juice Drink.
Value Chain Analysis
IFE Matrix
CPM
Evaluation of Present Corporate Strategy / Business Strategy
1.) Vision and Mision
2.) Generic Strategy
3.) Source of Competitive Advantage
Vision and Mission
Source of Competitive Advantage
1.) Well-Established Brand Name
2.) Well-Known Product
3.) Reputation
Now that the raw materials are prepared, production of the Zest-O juice drink takes place. Conversion of inputs into final product form happens here. Processes such as mixing of the ingredients, quality assurance, and packaging are some of the essential features under operation.
Outbound Logistics
Zest-O juice drinks are then distributed to various local supermarkets, convenience stores, and sari-sari stores nationwide upon order. And then they are the ones who will sell it for retail to end consumers
Marketing and Sales
Zest-O juice drink tags itself as “The No.1 Juice Drink”. It is available in market at a very reasonable price at around P8.00 – P10.00 per unit. Although it comes at a cheap price, the benefits you gain in each pack are exceptional. Zest-O has some T.V. commercial which is family oriented and emphasizes that they are still “The No.1 Juice Drink” from the past up to the present.
Services
Zest-O has after sales service. You may contact them for any inquiries, complaints, or suggestions. They are including their customer service telephone number at the back of each pack of their juice so that people have any complaints, they can easily know what telephone number to call.
Funchum
Refresh
Sunkist
Del Monte Fruitastics
EFE MATIX
Mission: Our mission is to be the leading manufacturer and distributor of juices, dairy and related food products that best satisfy the growing needs of the customers. This, for us is the means by which we can effectively participate in the social and economic development of the communities we serve, promote professional growth and well-being of our employees, maintain mutually profitable relationship with our trade partners and achieve growth level equal to or better than the norms of the food industry.

Vision: To be the leading food and beverage Filipino company competing with the multinational companies.

STRATEGY FORMULATION
1.) Proposed Vision and Mission
2.) Proposed Corporate Strategy
3.) Goal and Objectives
PROPOSED VISION AND MISSION
PROPOSED BUSINESS AND CORPORATE STRATEGY
GOAL AND OBJECTIVES
FUNCTIONAL AREAS STRATEGY
Vision: To be the preferred healthy ready-to-drink juice beverage among Filipinos

Mission: Zest-O aims to help the environment by lessening the waste that is produced through the use of biodegradable substances. Zest-O also aims to strengthen the close family ties through family-oriented commercials as well as to respond to the emerging need of healthy beverages of Filipinos.

CORPORATE BUSINESS STRATEGY
1.) External Growth Strategies
2.) Competitive Strategies
3.) Diversification
1.) Internal Growth Strategies
2.) Stability Strategy
3.) Cost Leadership
4.) Promotional Strategies
BUSINESS STRATEGY
STRATEGIC BUSINESS UNIT
Goals:
Attract larger market through the introduction of a new variance of the product

Objectives:
• Conduct an extensive marketing activity (e.g. advertisements)
• Development of the product
• Make the product available in stores

A. Marketing
B. Finance
C. Information Management
D. Human Resource Program
MARKETING
• Make a family-oriented commercial that will uplift the morale of Filipino families
• Use Social Medias such as Facebook, Instagram, Twitter, etc. to expand the reach within the target market and consumers. It will also increase the communication level from the company to the consumers. Delegate a team of customer’s service representatives that will address the concerns and comments of the consumer. It will also be a place of interaction among the company and its consumers

FINANCE
TV advertising in the Philippines costs P250, 000, more or less, for every 30-second spot on primetime. That means that if you see 5 ads while watching at night, the advertiser is spending P250, 000x5. That is why the media budget for some brands (like SMART, for example) can be as much as P800 million for one year.
INFORMATION MANAGEMENT
Strategic information systems are information systems that are developed in response to corporate business initiative. They are intended to give competitive advantage to the organization. They may deliver a product or service that is at a lower cost, that is differentiated, that focuses on a particular market segment, or is innovative.
HUMAN RESOURCE PROGRAM
The Zest-O Corporation will develop a stable, highly qualified, and motivated workface that actively delivers the corporate mission. The Corporation will no longer hire any employees or workers, Zest-O Corporation will only train their current employees for the company’s production of goods for them to have more efficient and effective utilization of manpower and to ensure realization of its established corporate objectives.
A value chain charts the path by which products and services are created and eventually sold to customers. The term value chain reflects the fact that, as each step of this path is completed, the product becomes more valuable than it was at the previous step.
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