"BUSINESS DEVELOPMENT PROPOSALTOPIC: STR ORGANIC DRINKS ON THE MOVE BY STO SUPERMART1. Introduction1.1 Significance of the Research StudyOrganic drinks have become significant in catering the needs for consumption in majority of thewestern countries. However, is South Asian nations, especially in Maldives, the brandedbeverages have predominance market share compared to the organic drinks. With the rising riskof inorganic beverages containing artificial substances becoming contributing factors forconditions like cancer, it is necessary to promote the consumption of organic drinks. On themove availability of such drinks would enable their abundant availability in highly populatedlocalities as well as in locations which experience significant public gathering. Also it providesan opportunity for the local developers of organic drinks to promote their products in the marketagainst the imported branded beverages which possess long term health related harmscollectively. One the move selling is also an attractive option in terms of capturing the marketshare among the teenagers and children below 12 years old who are attending primary andmiddle schools in the localities. The key objective of the business is to provide value for money beverages to the base ofconsumers who are otherwise depend on the highly expensive imported drinks. In the meantimethe organization shall also emphasize on establishing is brand identity and increasing the brandvalue in order to compete with the global brands who command considerable establishment inthe market. Another key area the product will be received upon is its health benefits due to itsorganic origin and devoid of any substances which could potentially bring about chronic or acutehealth hazards. In addition to that the business model also provides a blue print for other state- owned as well as private small and middle scale industries to come up with such concepts wherethe local industries as well as the local population can flourish together, by-passing the globalbusiness establishments in the country. It also leads ways for entrepreneurships in the area offood and beverages targeting the tourists’ fraternity in Maldives apart from the conventionalalcohol based beverages, which are so far popular among tourists.Page | 1 1.2 Concept TheoryIn terms of organic drink, there appears a significant demand among the markets in Maldives dueto the extensive consumption of other organic types of food such as fish and fish derivedproducts. This brings about a conceptual idea towards organic drinks where the market is filledwith inorganic based drinks which are mostly imported as well as manufactured by small scaleindustries locally. Also in accordance with the demographic and health related background, it ispresumed that organic drinks supplied in localities by mobile vending outlets would bring abouthigher degree of sales, where the objectives are mainly limited to the next five years in terms ofexponential growth. 1.3 Literature SourcesThe literature for this business proposal is obtained from an array of sources for academicperspectives as well as to derive the following business model. The primary sources are based on the business report by organization in the industry of food andretail as well as in related industries such as beverages. Also report from governmentalorganizations such as the Central banks, IMF and World Bank are considered for literature. Primary academic literature articles and academic review articles have been utilized for thepurpose of literature, especially to evaluate the academic perspective of the business and it’sstrategies. The pertained sources have critically been evaluated in terms of the merits and demerits of thesame and utilized accordingly by providing appropriate credits. 1.4 Actionable AssumptionsHow will the customers The organic drinks on the move by STO will be distributed for salesdiscover organic drinks by among localities which attracts considerable public gathering under theSTO jurisdiction of the Republic of Maldives. That brings about substantialrecognition to the brand as well as the product, especially during thephases of the product being introduced to the target market. What will be the initial From the customers’ perspective, it would be a different experiencePage | 2 impression of the customers altogether, especially the local customers who have had very little or noin terms of organic drinks? exposure to the organic drinks in the market. The impressions can bepresumed to be positive as far as the taste, quality and health benefits areemphasized. What will be the period of Upon the first to a few consumptions, it would be viable for a customer totime for the customer to feel significant of the product, especially in terms of its price, quality anddecide upon the significant taste in addition to health related benefits. Initial responses may vary fromof the product and their trying again the product to spreading the message around own personalprimary reaction? networks about the products in the market and their experiences regarding. Why will they think it is The product could presumably declared significant by the consumers duesignificant to the value it provides in terms of benefits related to health, taste,availability in localities on a frequent basis as well as its quality against theaffordable price in comparison with imported inorganic drinks. Why will they think it is a The existing products in the market are majorly important and none ofbetter option that those are them are purely organic thus bring about potential risks of health hazardsat the marketas well as they are expensive in comparison to the on the move organicdrinks by STO.How will the product be The products would be introduced as a surprising entry onto the marketdescribed among the local incorporating the traditional beverages of organic sources will newnetworks by who have avenues of providing the same on a retain basis to the customers. Morealready tested the products than the product specifications, the experience of having it would beshared initially by those who taste the products first. How the initial responses The initial response of excitement and sharing of mere experience wouldmay evolve with the convert onto a critical analysis of the products, in terms of their quality,business after a taste, ingredients, specifications, value for money ets. The same will alsoconsiderable period of time be concerned in terms of health benefits, any potential hazards etc.impressive track record and customer feedback are critical in evolvingsuch responses towards a positive dimension on a long term perspective. How and when the revenue The generation of the revenue is instant, as soon as the product iswill be generated from sales introduced to the market as the sales in on the basis of retail. The initialgeneration of revenue may vary depending upon the impression of its firsttrials for a week. However, it can be assumed that the same would bepositive enhancing the sales in subsequent weeks. Page | 3 How will the reinvestment The money generated via revenue can be invested upon in terms ofoccur in order to utilize the enhancing the distribution and retail chain across the market within themoney in accelerating the jurisdiction of Maldives as well as to the neighboring countries such as Sribusiness Lanka. Also it is a viable option to enhance the potentials of naturallypreserving the products by physical means for exportations to Asianregion. How can the model as a The model can be replicated by different organization ranging from state- whole be repeated in other owned to private business, especially by small and medium scale industriesmarkets which has similar whose markets can be limited to one to a few localities. Local productsdemands for alternative from organic basis can be ideal depending upon the geographical andproducts demographic origins and the demands the markets prompt with. 1.5 Business ObjectivesThe business objectives of organic drinks on the move initiative are based upon the SMARTobjectives. The objectives are attributed as follows.Specific The primary objective of the business is to promote and sell organic drinks where only100% pure organic beverages are considered, within the jurisdiction of Maldives. In termsof market share, the objective is to attain 50% of it for the organic beverages. Measurable It is expected to sell 900 000 beverages across the jurisdiction of Maldives within the first180 days of initiating the project.Collectively the project has a target of selling 5000beverages a day on the move. Agreed All stakeholders of the organization (STO) as well as the strategic business unitestablished for the specific project agree upon the objectives of the business. Realistic The business targets a market of 350 000, the entire population of the Republic ofMaldives. In such scenario it is a realistic objective to be able to sell 5000 beverages oforganic sources on the go. Time Within the first year of the initiative, the daily target would be attain 5000 beverages a daySpecific and to capture 50% of the market share. Every year there onwards, will be targeted for10% increase in terms of the number of sales as well as market share for the next fiveyears.Page | 4 2. The Strategic Business Review2.1 Company HistorySTO has been in the existence for the past 5 decades, with its initial set up in 1964 as a fullystate-funded business by the government of Maldives which was named as Athireemaafaanutrading Agency (ATA). The main aim of the company was to enhance national food security andas its main task was to import essential food items in bulk to be distributed nationally via localtraders and ATA’s own retail outlets. The company sold the imported goods to public atrelatively low mark up at the same time purchasing the supplies required for the government. th With its proven success in contributing to the national development, on 9 June 1979 it tookmajor stride in becoming the current State trading Organization (STO). With growing demand ofthe nation STO partook in all trading and commercial activity on behalf of the Government. Thecompany widened its operation by expanding imports, with increased number of commodityitems at first and then went on with modern construction materials to home appliances andconsumer goods.Page | 5 "