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Tom Scott and Tom First met while studying in at Brown University. During their summer they created ALLSERVE. A floating convenience store serving boats in in the Nantucket Harbor. At this time they sold ice, beer, soda and cigarette etc. They didn’t sell juice at that time.

 It increased to 20. They first created a peach juice. milk cartons and wine bottles in the boats. .  Got tremendous response from the customers.000 in the following year with a new name of Nantucket juice.  Which was discovered during Spain trip.  In 1st year Nantucket ALLSERVE sold 8000 cases of its renamed juice.  Initially they started selling it in blenders.

never mind that Tom and I hadn’t paid ourselves in three and a half years. Once while recalling: “We were scraping alone. especially during the winter. It was especially tough because we could see the juice really taking off” . By early 1993 our few employees hadn’t been paid in a year.• Both these founders invested their collective life savings of 17. everything was going back into the company. • Also generated small loan from a bank. But we worked all sorts of odd jobs on the side.000$.

000$ in exchange of 50% of the company. Ned Desmond also became the director of sales and marketing later.The two founders along with Ned Desmond persuaded Mike Egan to invest 600. The founders 1st met Mike Egan while serving him a boat during the early days of ALLSERVE. .

Egan performed the function of trusted advisor while not meddling in day to day operations of the business.He was the founder and former CEO of Alamo Car Rentals and still maintained 93% of that company’s stock. Once while sharing his expressions “I really made the investment because it makes me wake up in the morning and feel like I’m twenty-five again. trying to grow another company” .

 Secured better independent bottlers. 3. . Contact retailers directly to create trade promotion. Improved their distribution and increase inventory. 2. Implement a large advertising campaign for brand awareness while moving their product through an independent distributor channel which could carry multiple brands at the same time. Time of decision to distribute their beverages 1. Distribute the product yourself.

.Make their own unique private distribution strategy. delivered and stocked the product. Where they themselves sold.

we were doing it all. Becoming our own distributor allowed us to control the positioning of our product. . bought an old car and went up and down the street selling Nantucket Nectars and our passion to make the brand succeed. We leased some warehouse space. We often rearranged the shelves to ensure that Nantucket Nectars was better positioned than Snapple. The retailers immediately loved our story and enjoyed seeing us stock the shelves ourselves.

 Also dressed up people as fruit.  Placed messages under the bottle cap . sponsorship for road races and summer sports leagues. also gave samples.  Knowing this difficulty the founder decided to focus on a simple vision without the help of any outside agencies  They created high quality product.  Courtesy to Egan capital they also gave some radio ads. New beverage companies face tough time in order to market themselves.

 Customers like the Nantucket Nectar. The early days were extremely frustrating for the founders. It had 3 flavors 1) Cranberry fruit 2) Lemonade 3) Peach orange. .

we didn’t know what margin we should be making” .Founders were unsure how to grow the business. Tom Scott explained “The frustration that we dealt was immense. We didn’t know what point of sale was. we didn’t know what promotion was.

Category • Ready to drink teas • Water • Juices • Sports drinks Year (1992-1995) 24 34 32 12 .

 High quality at lower price  Developing brand image through solid promotion  Blocking the smaller and less powerful player’s to get shelf space New age and traditional beverage companies New age had opportunity in short term profits and traditional fight for best in mass market and also response to new trend. .

Emphasis on quality. lower profit margins Used four time more natural fruit juice than others 1st fiscal year 1995 result higher cost due to shortage of cranberry harvest. .

• Launch super nectar(herbal. fruit juice. vital C etc ) • Sales location • Super market 1% • Convenience stores 6% • Others (service sectors etc) 93% . honey and green tea) • Four favours of 80% fruit juice and 2 flavours green tea and honey (chi’l green tea. protein smoothie.

.• Geographically • • • • • North us 38% South us 29% Mid west 9% West 9% International 15% • founder decided to make more promotion on service sector as well as super market.

Other one firing the Ch.1994 snappel deal acquired by Quicker oats from Thomas Lee for $1. Executive William Smithburg .7 billions. Quicker sold it to Triarc for $300 million Reason because of distribution channel from old to new one.

Faced IPO problem Auction or sell out Decision to see it positively upside and acquire different other brands .

natural product.Internal brainstorming Plus points (taste. current management) Guerrilla's marketing skills Stabilizing cost structure Threes ways of distinction Discounted cost flow Comparable acquisition Comparable trading .

5 sales administrators and 3 quality control people. you lose that. • Non-Formal dress code.• Founders were very concerned with the outcome after sales. Once you start departmentalizing.” . “Destroying the entrepreneurial spirit that has made the company special is one of my biggest fears. 20 marketers. • Important TOMB words. 57 salespeople. It is essential that we maintain our culture so that work is still fun. • Having 100 employees of which there were 15 accountants. • Organizational structure was complex enough to reach the bosses called as the two tombs.

From the PDF File .

• Various competition tact's can be based for achieving competitive advantage . competitor might simply undercut in pricing to flood the market while also offering a high quality or innovative product. First.• Competition surfaced in three major ways in the New Age beverage world.

5A. theater and outdoor programmes. In the summer of 1988. grew their second venture and most notable accomplishment to date. Attended Landon School in Bethesda.• • • • • • • • • Born in Alexandria. Brown provided the plat form to lead foot ball. Tom founded Nantucket Allserve. and college friend. Earned degree in American Civilization and started a business during his summers on Nantucket Island. Spent his childhood in Chevy Chase. Continued education in Brown University. Nantucket Nectars. Tom First. Becky. He soon joined by his current partner.1966. . a boat business which serviced boats in Nantucket Harbor. From this first business. Tom currently lives in Boston and Nantucket and is accompanied at all times by his dog.

a boat business which serviced boats in Nantucket Harbor. Nantucket Nectars. and college friend. Tom First. From this first business. • He soon joined by his current partner.• In the summer of 1988. Becky. grew their second venture and most notable accomplishment to date. . • Tom currently lives in Boston and Nantucket and is accompanied at all times by his dog. Tom founded Nantucket Allserve.

he was determined to recreate the taste of a peach nectar that he had sampled during his travels in Spain.• • • • • • • • • Tom first was born in Boston in 1966 and raised in Weston. Tom First enjoyed playing lacrosse and sailing for Brown. MA. the two Toms moved to Nantucket and focused on strengthening their boat business. After graduating from Brown in 1989. Aspiring to continue on to architecture school. Rhode Island School of Design. Tom resides in Cambridge and Nantucket with his wife Kristan and dog. Ambitious by a thirst for cooking. Pete. . Continued education in Brown University. Attended concord academy. Where he met his closest friend TOM SCOTT. Tom spent some of his time at the neighboring art institute.

Both Tom and Tom were dropped out from accounting from Brown University. .

We are Juice guys .

• • • • • • • • • • Apple Quenchers (Very Fine line extension) Arizona Iced Tea Boku Crystal Light Chillers (Very Fine line extension) Evian Fruitopia Gatorade Jones Soda Lipton .

• • • • • • • • • • Minute Maid Mistic Nestea Ocean Spray Orangina Poland Springs Powerade Snapple Tropicana Season’s Best Very Fine .

. Tropicana’s strength in the Northeast US (70% market share) matches Nantucket Nectar’s business perfectly.• Seagram (Tropicana) Tropicana maintains the strongest distribution in the grocery segment for juices which should provide Nantucket Nectars with a strong platform to expand. Furthermore.

less hassle. .• Ocean Spray The founders knew the Ocean Spray senior management from industry conferences and believed that there was a good match of culture. Ocean Spray was private which would allow Nantucket Nectars to operate in a similar fashion: less disclosure. and less short-term pressure to hit earnings.

Pepsi recently terminated its distribution arrangement with Ocean Spray which will take effect sometime in early 1998. ready-to-drink sparkling coffee drink with Starbucks coffee called Mazagran.• Pepsi Pepsi seems more prepared to take risks with new products in the New Age segment. In 1995. . Pepsi launched a cold. a bottled water drink. In late 1996. Pepsi also launched Aquafina.

• Triarc (Snapple and Mistic) The founders believed that Triarc provided the best platform to grow the Nantucket Nectars business the most over the next two years. Through ownership of Snapple. . RC Cola and Mistic. Triarc has immediate access to a national single-serve network to push the Nantucket Nectar product.

While Cadbury has deep pockets to operate a New Age beverage company appropriately and for strategic reasons might decide to bid aggressively for Nantucket. The production strategy is to use an assorted group of independent bottlers as well as long-term agreements with Coke and Pepsi. .• Cadbury(Schweppes Ginger Ale) The sheer size of Cadbury makes a takeover unlikely. there current company strategy does not create much operating improvements or increased distribution strength.

.• Starbucks Nantucket Nectars had recently consummated an agreement with Starbucks calling for all Starbucks coffee shops to carry the Nantucket Nectar products.

• Welch’s Concerning product innovation. by giving the consumer products that have got substance to them. with faddish kinds of products. that means providing a very distinct. Welch’s has maintained a strong philosophy of reacting to the marketplace.” . robust-tasting product. With our grape-based items. CEO Dan Dillon described corporate strategy: “The whole industry seemed to be going in one direction. We have gone in a different direction.

• Coca-Cola Coca Cola has demonstrated strong concern in the past about acquiring businesses with smaller margins than their core carbonated soda business. .

.What were the entrepreneurial things they implemented here.