24A – Venture Concept No. 1

The venture I have been pursuing for the exercises provided in this course is a business idea involving a small dissolvable capsule containing a flavored additive consisting of salt, lime and the mix. This idea evolved years ago after noticing that most people in my home region of Central America and the Caribbean have a preference for consuming commercial beer with a pinch of salt and lime. 

As far as my knowledge there is no current market offering this product, and the basis of it’s success relies on creating convenience for people that would like to consume beer in this manner wherever they are but don’t always have access to salt and/or limes. After pursuing this idea and creating elevator pitches, developing logistics, and explaining the concept, I have been made aware by fellow students who grew up near beaches that small retailers would sell a similar product but with different design. 

The demographics of this product would not be restricted to age, as the product in itself does not contain any alcohol, although the target for the age demographic would reasonably be those within legal drinking ages. As far as region, the primary target would be those in the Central American and/or Caribbean region given this is a known region where this taste is prevalent. Regional demographics would not be exclusive though, but they would allow for a greater margin of success. 

As far as the potential of this opportunity it really is a hit or miss, if the product is developed well enough and the marketing is carried out correctly, people make grow to depend on this product or have a preference to purchase it so that their need for consuming beer in this manner can be fulfilled and/or satisfied in trips to the beach, outings, and/or social interactions. 

The window of opportunity for this product is broad, as the manner or preference of beer consumption has and arguably always will be present in certain regions of the world. It is simply an innovative product taking advantage of a near absent market with a high risk/ high potential scenario. With this in mind, as far as the venture concept goes, it is important to keep in mind that as of currently there a few to no competitors in this market. This leaves an opening for a niche market where the product can be introduced and it’s results observed calmly and carefully. 

The prime factor that I’d strive for in creating this product is assuring it is something that is eco-friendly and does not contribute to pollution. This is not only a personal goal but a conscious one given the most probable region of consumption would be coastal. As a lover of the beach, I wouldn’t want to be adding pollution with my product in any way. Contemporary society has also been gaining awareness in recent years with regards to pollution and successfully creating a dissolvable and biodegradable product would be an important factor in reeling unique customers in. 

In regards to distribution and production, I am in contact from a previously pursued venture with various fulfillment centers spread across the Americas and Europe, as well as facilitated access to production means from a verified account on Alibaba. Most likely production would take place in China given the reduced costs and consequently the potential margins achieved. As far as fulfillment centers, those with locations near my target demographic (Central America and Caribbean), would be priority. 

This isn’t exactly a venture that requires customer service, as it is a minimal product that would most likely be offered individually by retailers or hopefully if a merge can be agreed on, in a packaged environment with commercial beer. The customer experience would ultimately depend on the authenticity of the additives contained inside the capsule, and this would have to be carefully developed and examined in the production process. 

If the product were to be successful and the company were to expand, I would have no need to actively sum a vast amount of employees for the ongoing success of the company. A small full-time crew would be suffice in carrying out all application and requirements needed for the company to sustain competitive advantage. This is given due to production being handled in factories via the platform Alibaba, and the delivery to retailers being fulfilled by a prominent fulfillment center. My full-time crew would only need to take care of organizing logistics, administration, and brand-creation. 

The innovative aspect of this product again is introduced via the dissolvable/biodegradable capsule. If this is achieved within a market practically inexistent, it would create a large capacity to sustain competitive advantage over any other competitor that may come into the market. Of course, the development of this dissolvable capsule would ideally have to remain competitive in terms of price. 

If the venture is to be successful, I would see myself in five years hopefully holding a monopoly over this product. This could only be achieved if I truly enter a niche market and no competitors arise, and by the time they do, I have enough competitive advantage and innovative stance to keep ahead of the competition. The most important part of this venture is to create good vibes and provide a convenient and eco-friendly device so as to satisfy a customers needs in relation to the manner in which they consume beer. My mission statement would most probably be: “To create a unique experience out of every beer”.