Key Success Factors

Name
Key Success Factors
Course
Instructor
Date

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Key Success Factors

Key success factor (KSF) is a term of management for an element that is essential for a
project or an organization for achieving its mission. It is a critical activity or factor required for
making sure the success of an organization or a company. The term was used initially in the
world of business analysis and data analysis.
New Venture in Beverage Industry
Flipo Inc. is introducing a new flavor this year for their bottling product line and their
freestyle machine, Mango with a splash of cinnamon. Mango is one of the most popular fruits in
the world; it has a sweet taste that will mix well with the sweet, woody taste of cinnamon. By
adding mango to Flipo Inc. product line this will bring a tropical taste that has not been offered
before. Flipo Inc. is confident the new mango flavor will be well received among the consumers
due to marketing research and the popularity of mango around the world. The new Mango Splash
will bring the healthier side to the Flipo Inc. line up.
Competitors of Flipo Inc. dont have anything similar to Mango Splash. Mango Splash is
a healthier choice than the sugary sodas. With the changing tastes and consumers leaning to
healthier drinks, both Coke and Pepsi are seeing a decline in soda consumption. Flipo Inc. wants
consumers to understand that Flipo Inc. is now aiming to please the healthier consumers. Flipo
Inc. has aimed to please in the past by making products such as carbonated drinks and even down
to the diet caffeine free soda; the Mango Splash is the new hit of healthy.
Industry Analysis
The NAB industry generally comprises hot drinks and soft drinks. Soft drinks comprise
non-carbonated or carbonated water, a flavor, and a sweetener, and hot drinks comprise tea and

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coffee. The industry is dominated by the category of soft drink and comprises energy and sports,
ready-to-drink coffee and tea, bottled water, juice, and drinks carbonates. Sometimes soft drinks
are denoted as liquid refreshment beverages
(or LRBs). LRBs, in the U.S., lead retail sales

of food and

beverage.
The above chart is showing the global
soft drink market size in 2013. According to the
chart, carbonated drinks have the top place in the
by juices. For non-alcoholic drinks, North America is the

market followed
major market

internationally closely followed by Asia Pacific Though, in recent times owing to increasing
health awareness the demand for non-alcoholic drinks has decreased considerably, especially
among the younger population. Due to this, non-alcoholic drinks market in North America is
expected to have a stable growth throughout the forecast period (PRNewswire, 2015).
Increasing awareness, apart from this, regarding obesity is also a key factor detaining the demand
for NAB in the United States.
Competitors
Competitor analysis has huge importance in marketing. The competitors present the
actual information of the market and analysis of competitors enable organizations to realize the
opportunities that have not been attained by the competitors. Consequently, the company will be
able to approximate that either the product will succeed or not. It is a series of exercise for
specific marketing efforts. Competitive intelligence is never ending product and only ends with
all competitors exit from the market or their move to elsewhere. It is not enough to have

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competitive tactics, strategies that are based on sketchy information of competitors activities, and
ignoring them is not a wise practice. It looks easy to monitor the activities of competitors, but it
is not simple, as it seems. In order to make worthwhile strategies and to stay long, counteracting
the activities of competitors is compulsory (Youngman, 1998). For this, the first thing to analyze
is that the competitors of the Flipo Inc. Following are the competitors of the company:
National fruit juice Company
The company markets its products as a sizeable product, which is backed by the modern
lab. The marketing strategy of the company is to promote the product as hygienic and quality
product. In 1995, the company was selected as top plan in the whole world, and its
manufacturing practices were rate 86 percent in term of excellent. The company provides five
flavors that include apple, lemon, orange, mango, and guava (National Fruit Juice Company,
N.d.).
Tropicana Juice
Tropicana has a variety of flavor in juices and uses fresh fruits to make beverages.
Company markets its products through elaborating the health benefits. Its product family
includes 7 different categories (chilled juices and drinks, trop 5, Tropicana premium lemonade,
Tropicana pure premium, Tropicana farm stand, tropics, and non-refrigerated juice and drinks)
with different features and each has different flavors. Such as some have pulp, some are pure
juices, some have extra vitamins, and some have no sugar, water, and preservatives (Tropicana,
2015).
Key Success Factor

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Following are the Key Success factors in the beverage industry that Flipo Inc. would be
competing:
Key Success
Factors
Financial
Position
Advertising
Market
Share
Brand Image
Customer
Loyalty
Product
Quality
Product
range
Distribution
Price
Competition
Geographical
Expansion
Financial
Position

Weights

National fruit juice Tropicana Juice

Flipo Inc.
Rating
Weighted Rating
Weighted Rating
Weighted

0.08

Score
0.32

.012
0.12

4
4

0.48
0.48

4
3

0.48
0.36

3
2

0.40
0.30

0.10
0.10

4
3

0.40
0.30

4
3

0.40
0.30

3
2

0.35
0.25

0.12

0.48

0.48

0.48

0.08

0.24

0.32

0.24

0.1
0.08

4
3

0.40
0.24

3
3

0.30
0.24

3
3

0.30
0.24

0.10

0.40

0.30

0.30

1.00

Score
0.24

Score
0.26

3.74

3.42

3.12

Competitiveness
Flipo Inc. will attain its competitive edge generally from having a stronger team that will
assist in distributing and making the beverages and fruit juices. For conducting the business in a
better way, Flipo Inc. will subcontract management and financial advisors. Another competitive
edge of Flipo Inc. will be the usage of automatic vending machine. With the intention of
remaining competitive in the market, the business will use the differentiation strategy (Jones &
Hill, 2012).

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Identification of newer methods of making things better are included in some R&D
activities. For facilitating the newer drinks for meeting the consumers fast-changing
requirements, a sufficient amount of money will be kept as reserve. Developing newer manners
of the product packing are also included in the R&D activities. This will give a new look to the
products of company. Through differentiation, the R&D activities will assist the organization in
attaining competitive edge; therefore retaining the old customers and attracting newer customers.
Flipo Inc.s operations will be cost as well as time effective. For making the more
effective cost, Fllipo Inc. initially will lease the vending machines; though the organization will
buy these machines with the passage of time. The distribution of the beverages and juices the
convenient store and to stand-alone vending machines will be easy if the location of the main
warehouse and production is at a central point, thus saving time. Another way the company will
save its cost is that the organization will use its own trucks for the distribution.

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References
Hill, C. W. L., & Jones, G. R. (2012). Strategic Management.
Cengage Learning.
Youngman, L. (1998). Competitor Analysis In Financial Services. England: Woodhead
Publishing.
National Fruit Juice Company. (N.d.)Home.Retrieved May 15, 2015.http://www.nfjcksa.com/html/english/eng-Frame-2.htm
Tropicana.(2015). Our Products Family.Retrieved May 15,
2015.http://www.tropicana.com/#/trop_products/productsLanding.swf
PRNewswire, 2015. Non-Alcoholic Drinks Market - Global Industry Analysis, Size, Share,
Growth, Trends and Forecast, 2014 2020. Retrieved from
http://www.prnewswire.com/news-releases/non-alcoholic-drinks-market---globalindustry-analysis-size-share-growth-trends-and-forecast-2014---2020-300033023.html