Feasibility study for punch drinks Coursework Example | Topics and Well Written Essays - 1500 words

Feasibility study for punch drinks - Coursework Example Feasibility study for punch drinks Punch drinks unlike other business firms has an ultra-successful sortie into the beverage market which is driven by necessity; being set up in a society where sports is valued, and the disappointing taste of existing energy drinks. The existing drinks had questionable ingredients and could not be believed to be in synchrony with the changing lifestyles. Establishing the feasibility Punch energy drink is a visually clean and appealing brand which gets the eye of the consumer at sight. Punch drinks comes into the energy drinks production industry with an intention to meet the changing demand of the clients in a classy way. As the tastes of people change with the ever-changing trend if the world, it is important to note the aspect of moving with the change in order to succeed in the industry. Currently people have developed concerns over their health in terms of what they take. Thus, a result was the calls for natural drinks which have no additives. Punch comes as a solution by producin g an energy drink which has no additive; has only the natural ingredients and changes the way the drink tastes. The drink is presented as a pleasant tasting assortment of juice flavours and ingredients of energy which gives the product a natural taste of a fruit. This is a big leap towards the mild but sweet flavour which ends with a crisp and clean finish. In the production process, a number of additives used by other firms have been eliminated, such as gurana. In the real sense, punch energy drink is a valiant product which in it presents the first hand thought of innovation combined with the realities of its viability which makes punch drinks a business firm of the 21st century as it respects the need of the people and move along with them. Market research and competitor analysis Based on PEST analysis, it is likely to identify the essential environmental effects on punch drinks. Firstly, it is eminent that the main economic issue is the universal recession which was initially ca used by the U.S. housing bubble over 2005 to 2008. This financial crisis has been to sturdily motivate consumers to purchase affordable products with immense quality. This means that punch drinks will attract a good number of consumers without much efforts in advertising and sales promotion. Due to this, it is not essential to adopt complex strategies to grow the customer base. On the other hand, the recession resulted in the increase on the production costs, thus creating a doubt in the lowly priced and high-quality products. Therefore, the business should consider this problem for it to ensure that it will succeed in the market. Furthermore, social aspects which influence punch drinks include the variation in consumer taste, lifestyle and health concerns. It is definite that over the recent years, customers have changed their taste preferences such as the rise in the demand for natural and organic drinks. Punch drinks should consider this aspect since it may have effects on the fu ture strategies of product developments. Furthermore, there is no doubt that the changes in lifestyle might escalade the need for natural drinks. At the present, health concerns have become global issues, with consumers purchasing healthier products without many worries (Elliott 2005). In order to analyze the competitive environment of punch drinks, porter’