Question

ABC Ltd is a leading corporate in India in FMCG. After an extensive research by their Marketing department they found out they should diversify into Foods & Beverages. The top management decided to get in the manufacturing of a coconut flavoured soft drink and a coconut flavoured milk based drink. Pumping capital in the venture into the business is not a major concern for the company as they have many regular investors on hand. The company would like to have a major presence with a pan India distribution network
a. Do you think the idea of getting into the business of a coconut flavoured drinks a feasible business/ product on for a FMCG company? Give your views with reasons.
b. Assuming that the business idea would have a very encouraging response, suggest a suitable plant location to set up the beverage manufacturing. Give reasons for the same.

Answer 1

The business of a coconut flavoured drinks a feasible business/ product on for a FMCG company

Explanation:

a)The idea of getting into the business of a coconut flavoured drinks a feasible business/ product on for a FMCG company will be a good decision and they get high profits if they release 2 flavored soft drinks. People are more health conscious and they will prefer healthy drink like coconut drink.  

b)Plant location to set up the beverage manufacturing should be near coconut tree plantation area so they can get the coconuts available whenever they need and there will be less transportation cost. Fresh coconut available will give good tastes and will attract customers.  

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