29A – Venture Concept No. 2

Opportunity

In terms of the world’s general society, social drinking has long been a pass time for adults in almost all cultures. The business product developed arises from the opportunity to exploit the tastes of a regional demographic to which I belong, where many enjoy the consumption of beer with a touch of salt and lime. Salt is said to emphasize the flavor of beer, and it is common culture in the Central American/Caribbean region to include the additive in alcoholic drinks. The original opportunity created revolves around a capsulated version of this additive so as to provide convenience for consumers who wish to indulge in this form of consumption.

Forces

To the extent of my knowledge there is no one product that holds a monopoly in this market, nor is the market sufficiently advanced for powerhouse companies to form a part of. In other words, there is no defined market as to date.

As far as the potential, the business idea could be said to be a hit or miss. There is a barrier that has to be surpassed which is the habit of manually adding the additive and utilizing real lime, though if the product developed is quality and efficient marketing is executed, people will grow to depend on the product. The primary strategy for achieving this is targeting consumers who plan to socially drink in places where the formerly mentioned objects are seldomly available, such as trips to the beach, outings, and/or social interactions.

Window of Opportunity

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 window of opportunity for this product is broad, 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.

Innovation

The prime factor that I’d strive for in creating this product is ensuring 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.

If this is achieved within a market practically nonexistent, 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.

Venture Concept

The venture I have been pursuing for the exercises provided in this course involves a small dissolvable capsule containing a flavored additive consisting of salt, lime and the mix. As far as my knowledge there is no current market offering this product, and the basis of its success relies on creating convenience for people that would like to consume beer in this manner no matter their location. In previous exercises I have been made aware by fellow students that versions of this product were and are sold in coastal areas, though the companies are not exactly advanced and no one company holds a monopoly.

The 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.

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The demographic target for this product would not be restricted to age, as the product in itself does not contain any alcohol, although the purpose of the product would exclude minors from the target demographic. As far as region, the Central American/Caribbean region is known to have a prevalence for this taste. Regional demographics would not be exclusive though, but they would allow for a greater margin of success.

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 by commercial beer corporations if a merge were to take place. 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.

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”.

Feedback

The majority of the constructive feedback received was this regards to the organizational aspect of my venture concept. This consisted of the separation of the Opportunity, Innovation, and Venture Concept, which was not previously included in my past assignment. The result of the advised would have cleared my second most prevalent feedback which was the clarification of the points analyzed.

How I’ll Adapt

To adapt to the formerly mentioned I separated the three main parts of the exercise instead of including all points in one. Aspects were not pooled together and were each explained in their corresponding categories. With this strategy I hoped to clarify the points expressed.