Factors To Consider When Starting A Business

The company name will be “Mighty Munchables,” a memorable, catchy, and evocative name, mainly because the target market is children and teenagers. The name is unique, and therefore it will receive attention and attract more people hence playing a crucial role in the brand’s growth. The products that the company will be producing are a range of gummies and healthy candies. Currently, in the United States, the gummies and candy industry are valued at 13.9 billion, and the market size is expected to grow further (Grand View Research, 2019). 

The range of gummies and candies that the company will be producing include sour gummies, which are crunchy and dusted with sour sugar. The sour gummies will come in different flavors, such as cherry berries, strawberry, apple, and lemon. The second flavor of gummies is a sweet touch, which is more precious than sour gummies, and they are extra crunchy and dusted with sugar. The touch of sweet gummies will be available in various flavors, including orange peel and blueberry. The third type of gummies is creamy gummies which are less crunchy and are filled with a yummy sugary paste and will be available in the flavor of strawberry and blackcurrant.

The company will also produce vitamin C gummy sticks containing 100 milligrams of vitamin c. The vitamin C gummies will help boost the immune system of children and help in reducing tiredness and fatigue. Vitamin C gummies have essential health benefits, especially as kids attend school in the middle of a pandemic. The gummy bears are sweet and enriched with different healthy flavors. The gummies are also suitable for vegetarians because they are made of fruit flavors. The other product that the company will produce is coated jelly beans flavored with licorice.

The company’s mission is “manufacturing and distributing snacks that are superior in quality and value to consumers.”

Strength Everyone loves gummiesVariety in product Healthy optionsAffordable pricingStrong management team	Weaknesses High innovative costStiff competitionGrowth opportunitiesEmployee salaries and benefits
Opportunities Vitamin gummies is the futureHealthier optionsDemand for sugar free optionsSupport for home grown products	Threats Pricey substitute sugarsMaintaining Clientele and adding moreMeeting market demands

SWOT Analysis of the “Might Munchables” snack company

Strength

One strength of the company is that it has a relatively firm base because the primary target market is children and teenagers who have sweet teeth. Therefore, they create a consistent demand for gummies and candies all year round. Many adults also enjoy gummy candies, which increases the market potential to grow. The gummies and candy industry are valued at 13.9 billion which means that the market size has potential to grow even further (Grand View Research, 2019). The “Mighty Munchables” also come in a variety of fruit and berry flavors which make it possible to be consumed by vegetarians. The company also has a unique and catchy name which will attract more youngsters. The company has an affordable price range which increases the willingness of everyone to buy. The company has a strong management team that will play a crucial role in organizing the company’s plans and sales strategies to attract more customers.

Weaknesses

One of the company’s weaknesses is that it will have to incur a high innovation cost to create new candies to attract more customers. The company also faces stiff competition from big brands such as Kit Kat and Haribo. There is also limited ability to grow market share. Being a start-up, the company may face challenges paying high salaries to its employees.

Opportunities

With the increase in chronic diseases, the market for vitamin gummy candies is on the rise. A special occasion such as Halloween creates an opportunity to boost sales. There is also increasing popularity of healthy living which vitamin gummies and fruit-flavored candies are more likely to be bought by customers. There is also an increasing demand for sugar-free gummies, which creates an opportunity for growth.

Threats

The ever-changing health trends constantly contribute to customer preferences which might be difficult for the company to keep up with. Also, the government has enforced strict restrictions on the ingredients used in candies and gummies especially sweetening ingredients. The recommended government ingredients are pricey.

‘Mighty Munchables’

Demographic description

The company’s target market will be family and, most importantly, the family buying manager. The brand portrays itself in a youthful nature, and it targets both men and women who enjoy indulging in sweet and healthy snacks. Within the family setting, the company mainly targets children from 4 to 14. The company will also target youth from the age of 18- 30 and adults from 30 to 40. The company will therefore target middle-class families who are college-educated and have children. The family’s annual income will be ranging from 30,000 dollars to 49,000 dollars, which makes them have disposable income allowing them to purchase the company’s products.

Geographic Description

The products will be sold in the major cities in the United States, such as New York, Atlanta, Los Angelo, Chicago, and other major cities. The products will be sold at supermarkets, convenience stores, cafes, and movie concession counters. Most middle-class populations are likely to shop in supermarkets such as Sainsbury’s, Marks & Spencer, and Tesco. The products will be showcased at strategic positions to ensure that majority of the people who visit the store see the product.

Lifestyle Description

The most middle class who are our target market own a home which is a step up from renting. The middle class also own a car which gives them the luxury of avoiding limited schedules offered by mass transportation. Majority of individuals within our target market drive cars such as Honda Civic, Nissan Altima, Chevrolet Malibu, and BMW 3-series. The target market also comprises individuals who consider a family vacation a staple necessity, which shows that disposable income takes time from work and focuses on leisure.

Psychographic Description

The target market is mainly made of the fun-seeking individual and a trendsetter because it comprises teenagers who spend most of their time in popular applications such as Tik Tok or Instagram; therefore, they are most likely to influence each other to use a certain product.

Purchasing Pattern Description

  They will be buying the product during family gatherings such as birthday parties or parties with friends. Most of the target population might be buying the product while doing their regular household shopping. The youth and adults can buy snacks during their lunchtime because most individuals in this population enjoy the “snacking” culture to relieve stress (Hassen et al., 2018).

Buying Sensitivities Description

One of the factors that are important to the target market is quality. The target market will appreciate high-quality goods. The packing is also important; they must come in packages suitable for family packs and mini bags, which people can even carry to work. The products must also have colorful and creative packaging to attract children.