Tuesday, December 24, 2019

Nantucket Nectars - 1342 Words

Nantucket Nectars: Case Study Carl Medeiros 5/1/2010 Tom Scott and Tom First started Allserve, a floating convenience store serving boats in the Nantucket Harbour during their summer holidays in college. After graduation, during the winter of 1990, Tom First recreated a peach fruit juice drink that he came across in Spain and started a side business selling his fresh juice. Everyone loved the product and they went on to open the Allserve General Store on Nantuckets Straight Wharf. They named the fruit juice Nantucket Nectars. Tom and Tom invested both of their life savings, which was about $17,000 to contract a bottler and finance inventory in the first two years. The next two years saw them operating in an undercapitalized†¦show more content†¦Threat Competition in the beverage industry is extremely intense. Competitors continually introduce new innovative products and consumers are bombarded by numerous choices and promotions. Nantucket Nectars has been successful with increasing sales and continually innovating new products, and grown to a middle-sized company. This position proves to be a dangerous one as it does not possess the financial strength of a large company but yet may not have the quickness and innovativeness of a small company. In addition, the entrance of big players such as Coke, Pepsi and Tropicana/Seagram with strong financial standing may reduce their revenue. Also, the past few years saw Nantucket maturing and it has begun to stabilize as a company. This is a dangerous period for the company as it might cause a crisis if they do not undergo renewal in order to rejuvenate and stay relevant and competitive. Should they go IPO? The advantages of going through an IPO would be that it would provide Nantucket Nectars interest free capital to finance growth as well as raise the company’s profile which would allow them to attract high quality customers, alliance partners and employee’s. However, the disadvantages of an IPO would be that it’s an expensive and time consuming process and would require all company information to become public knowledge. Also, it may mean that Tom and Tom would have toShow MoreRelatedNantucket Nectars Case Study1731 Words   |  7 PagesNantucket Nectars Juice Guys Bottle Formula for Success With Quality Ingredients The island of Nantucket is known for its entrepreneurial spirit. Tom Scott and Tom First caught that fever nine years ago when they started peddling Nantucket Nectars in the islands harbor. Now the self-proclaimed juice guys hold the number-two spot in the New Age beverage market. To say the juice guys started their company, Nantucket Nectars, on a shoestring budget would be an understatement. The two TomsRead MoreNantucket Nectars1329 Words   |  6 PagesNantucket Nectars Tom Scott and Tom First started Allserve, a floating convenience store serving boats in the Nantucket Harbour during their summer holidays in college. 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To accomplish this feat, the company must decide how to target and position the stores given the differential differences in demographic and environmental traits. Furthermore, Juice GuysRead MoreEssay on Juice Guys Case Study Analysis1200 Words   |  5 PagesJuice Guysâ„ ¢ In the summer of 1998, Nantucket Nectar created a subsidiary of their brand called Juice Guys. This new product was comprised of fresh juice and fruit smoothie drinks that were taking over the West Coast. Within three-and-a-half months, Juice Guys had sold a total of 175,000 items ranging from smoothies, yogurts, sorbets, Nantucket Nectar drinks and fresh squeezed juices. Juice Guys’ revenue went up to 91% and they made a profit of $227,000 in sales. Noticing the tremendous successRead MoreQ3 Innovation Essay1918 Words   |  8 Pagesï » ¿WEEK 5 / ASSIGNMENT 1 Case Analysis: Nantucket Nectars PRO’s CON’s Tom Scott and Tom First founded Nantucket Nectars in 1990 as a small side-business on Nantucket’s Straight Wharf. A peach fruit juice drink that Tom First discovered while visiting Spain inspired him and his partner to embark upon the journey of building their juice company. After only six years, the two entrepreneurs built a business that was generating $29,493,000 per year in revenue and $969,000 in EBITDA. With remarkableRead MoreSnapple Case Study948 Words   |  4 Pagessystem and create new products that would enable growth. Most importantly, they had to reconnect the brand with its consumers. Luckily for Triarc, the new-aged consumer was changing again. Companies were coming out with fruit based drinks again (Nantucket Nectar etc.). Triarc invested heavily in product development and used dynamic marketing strategies to differentiate Snapple from its competitors. Product development was Triarc’s most important move. They developed products such as Whipper Snap ple,Read MoreCase study discussion questions1663 Words   |  7 Pages3-stage approach to achieving their long-term goal? 3) How much money should the company raise? From whom? On what terms? 4) What should luliano and his management team do? 16. (6/2) realization of value, IPO or sell out Case Study: Nantucket Nectars, Jon M. Biotti 1) What are the pros and cons of remaining independent? Going public? Selling the company? 2) If management decides to consider selling the company, how should they orchestrate the process? Should they hire an investment bankerRead MoreVideo Notes29279 Words   |  118 PagesWeapon at Starwood |1 |21 | |Project Management at the Phoenician |2 |24 | |Nantucket Nectars: ERP |2, 15 |27 | |Pearson Education: Information Technology |3, 4, 10 |31

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