AN ASSIGNMENT ON BUSINESS PLAN ON MARKET NICHE FOR REYES HOLDINGS

Executive summary 

Reyes Holdings is a global leader in food and beverage production and distribution. Reyes Holdings is the parent firm of three separate companies: Reyes Beer Division, Martin Brower, and Reyes Coca-Cola Bottling. They form the Reyes Family of Businesses, which has 31,000 employees, over 220,000 clients, and annual revenue of $30 billion. Reyes Holdings, a global leader in the production and distribution of food and beverage goods, was founded in 1976 with a Schlitz beer distributor. It is still a family-owned and operated business today. To name a few, we are happy to work with a varied range of brands: Modelo, Coors Light, Miller Lite, Whiteclaw, Lagunitas, McDonalds, Chick-Fil-A, Chipotle, Coca-Cola, Smart Water, Minute Maid, Monster, and Body Armor are just a few of the brands that are available. I’ve watched the rise of competition in the marketing sector as the head of entrepreneurship and innovation. We were the eighth largest privately held corporation in the United States in 2020. I want us to make a push for first place. As a result, I advised that this company grow into a market niche. A niche market is a segment of the market dedicated to a single product. The product features aimed at addressing specific market needs, as well as the price range, production quality, and demographics that it is meant to attract, are all defined by the market niche. It’s also a relatively modest market. The following are some of the advantages of expanding into a market niche: When our marketing niche is well defined, we can ensure that we stay focused on selling to the most profitable customers. Marketing Costs Are Lower (Once you have a clear picture of who you’re talking to, you can generate customized prospect lists and sales and marketing communications tailored to them.). The first step in developing highly relevant content that piques prospects’ interest is to understand your “buyer persona” (as we marketers like to call it). Greater Credibility and Trustworthiness (As you gain knowledge in your unique marketing sector, you begin to establish a reputation as a subject matter expert.) People will respect your perspective and regard you as an industry thought leader). Reduced Competition (It’s easier to obtain more of the same types of consumers if you’ve established yourself as an expert in your field.) You have a distinct selling advantage). With these verifiable market niche advantages, we can attain our objectives. The cost of running marketing niche will be as followed:

• Average SEO costs are $100-$250 an hour for US SEO agencies
• SEO costs often range from $2,500 – $10,000 per month agencies
• The average SEO plan costs $2819 per month (per Ahrefs)

Purpose/vision

The purpose of this proposal are;

1. Niche marketing will help us enhance Customer Relationships
2. It will reduce Competition
3. It will Increase Visibility
4. It will Less Resources
5. It will increase Referrals

Concept of entrepreneurship

Entrepreneurship can be studied from a variety of angles, resulting in a multifaceted notion (Bula, 2012). While the study of entrepreneurship began in the second half of the sixteenth century for Economics and Managerial Sciences, the first psychological studies on the subject were published in the 1960s with McClelland (1965), Rotter (1966), and Atkinson’s important publications (1966). These writers concentrated their efforts on attempting to explain how individual and social motivation is one of the most essential psychological aspects in entrepreneurship, and they discovered that inventiveness, power distance, and a willingness to take risks are important factors for success. Furthermore, the entrepreneurial propensity rate rises as the likelihood of success rises. (Kalkan & Kaygusuz, 2012).

To be successful, entrepreneurs must be able to recognize business opportunities (Stevenson & Jarillo, 1990; Barringer & Ireland, 2006; Timmons, 1999; Mariotti & Glackin, 2010), choose and manage entrepreneurial careers (Haynie & Shepherd, 2011), and act entrepreneurially (McMullen & Shepherd, 2006; Shepherd & Patzelt, 2011) by being adapted to business circumstances given their higher capacity of resilience to failure.

Entrepreneurial alertness (Kirzner, 1979) is defined as a special set of perceptual and cognitive processing skills geared to opportunity recognition processes, and it drives their mentality. Since a result of this entrepreneurial vigilance, only the most daring risk-takers succeed in running their enterprises, as «the entrepreneur continually hunts for change, responds to it, and utilizes it as an opportunity» (Drucker, 1985, p. 25).

As the nature of the decision-making environment with entrepreneurs’ actions shows, entrepreneurship is the act of innovation including endowing existing resources with new wealth-producing capability (Drucker, 1985). (Alvarez & Barney, 2005). As a result, “the entrepreneur is someone who specializes in accepting responsibility for and making judgmental decisions that impact the location, form, and use of things, resources, or institutions.” (Hébert & Link, 1989, p. 213).

Entrepreneurs are the lifeblood of a business, especially in start-ups. Given the foregoing definitions, entrepreneurship can be characterized as a form of business strategy aimed at creating jobs, societal wealth, and profit through the efficient use of productive and commercial resources.

Furthermore, Ahmad and Seymour (2008) define entrepreneurship as “enterprising human effort in pursuit of the formation of value, through the creation or extension of economic activity, through the identification and exploiting of new products, processes, or markets” (p. 9). In this view, Lumpkin and Dess (1996) assert that the primary act of entrepreneurship is to enter new or established markets with new or existing goods and services by initiating new ventures, either by start-up enterprises or through internal corporate venturing. Entrepreneurial activities are theoretically governed by some entrepreneurship theories, which will be discussed in the next section.

Process of Entrepreneurship

Entrepreneurship is defined as the pursuit of market opportunities to develop future innovative goods and services that are discovered, evaluated, and exploited to extract social and economic value from the environment, ultimately leading to the establishment of a new independent business or venture (Shane & Venkataraman, 2000:218). Entrepreneurship encapsulates the incredibly difficult process of starting a new business.

The entrepreneurship process encompasses all processes, activities, and actions related to recognizing and analyzing perceived opportunities, as well as the gathering of resources required for the successful development of a new organization to seek and grasp those opportunities (Bygrave, 1997:2; Cornwall & Naughton, 2003:62). Once established, entrepreneurship becomes a cyclical process of identifying possibilities and making strategic decisions about how to allocate finite resources in the pursuit of value-added opportunities (Glancey, 1998:18; Kodithuwakhu & Rosa, 2002:443).

Although the assumptions and variables included in theoretical models of the new venture formation process differ, they always have common aspects (Mueller & Thomas, 2001:53).

Distinct stages in the entrepreneurship process are briefly discussed below:

The literature cites two broad dimensions of the entrepreneurial process, according to Pretorius et al (2005a:57), namely opportunity recognition and resource acquisition. Gruber (2002:193) distinguishes three stages: pre-founding (opportunity identification and evaluation), founding (enterprise strategy, resource collecting, incorporation, and market entry), and early development (research and development) (building the company and market penetration). The three stages of the entrepreneurship process, according to Baron (2004a:170), include screening ideas for feasibility, accumulating needed resources, and actually launching a new business.

Bhave (1995:223) distinguishes four stages: opportunity discovery, technology implementation, organization formation, and exchange. Hisrich & Peters (2002:40) define four steps of the entrepreneurial process: recognizing and analyzing the opportunity, establishing the business strategy, deciding the resources required, and managing the resulting enterprise.

Identifying, measuring, and refining an opportunity from many concepts; establishing a business plan; marshalling resources; assembling and mobilizing a team; and overseeing the new venture formation and growth are the five particular processes identified by Rwigema and Venter (2004:28).

Thus the four stages of the entrepreneurial process are defined as follows:

1. Innovation, which comprises producing the idea, innovation, recognizing a market opportunity, information search, conception, feasibility screening, determining where to extract value, and product or service development.
2. Triggering event: gestation, inspiration to start a business, choice to proceed, business planning, identifying the various resources required, risk assessment, resource acquisition, and assembly.
3. Infancy, incorporation, setting up and launching the new enterprise, business strategy, implementing the business plan, running the business, deploying resources, building success, and managing the venture are all examples of implementation.

4. Adolescence, which includes optimizing revenues, reaping the benefits, and expanding the venture to incorporate new opportunities.

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