Professional Documents
Culture Documents
Business Plan of Energy Drink
Business Plan of Energy Drink
Office:
Bhimber Road, Near Pind Ftyana, Gujrat
Phone:
(053) 512453
(053) 515600
Fax:
(053) 510066
Email:
sunstarbeverages@gmail.com
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SUNSTAR BEVERAGES
Table of Contents
TABLE OF CONTENTS...............................................................................................................................1
INTRODUCTION:......................................................................................................................................3
DESCRIPTION OF BUSINESS:...........................................................................................................3
FINANCING:..................................................................................................................................................3
EXECUTIVE SUMMARY:........................................................................................................................4
MISSION:......................................................................................................................................................4
SOLOGON:...................................................................................................................................................4
VISION:........................................................................................................................................................4
OBJECTIVES:................................................................................................................................................4
KEYS TO SUCCESS:.....................................................................................................................................4
COMPANY HIGHLIGHTS:..............................................................................................................................4
INDUSTRY ANALYSIS:...........................................................................................................................6
TARGET MARKET:.......................................................................................................................................7
COMPETITION:.............................................................................................................................................7
DESCRIPTION OF VENTURE:............................................................................................................7
PRODUCT:....................................................................................................................................................7
SIZE OF OPERATION:...................................................................................................................................8
OFFICE EQUIPMENT:....................................................................................................................................8
BACKGROUND OF THE ENTREPRENEUR:....................................................................................................8
PRODUCTION PLAN:.............................................................................................................................9
Ingredients.........................................................................................................................................9
STAGES OF PRODUCTION PROCESS:..............................................................................................9
OPERATIONAL PLAN:..........................................................................................................................10
MARKETING PLAN:...............................................................................................................................11
PRODUCT:...................................................................................................................................................11
PLACE.........................................................................................................................................................12
Main Suppliers.................................................................................................................................12
Marketing Distribution Channel................................................................................................12
PRICE:.........................................................................................................................................................12
Discounts, Allowances Offered.................................................................................................13
PROMOTION:...............................................................................................................................................13
Communication Channels...........................................................................................................13
ORGANIZATIONAL PLAN:.................................................................................................................13
HIERARCHAL STRUCTURE:.........................................................................................................................14
FINANCIAL PLAN:....................................................................................................................................16
BREAK EVEN ANALYSIS:............................................................................................................................17
APPENDIX:................................................................................................................................................19
MARKET RESEARCH:..................................................................................................................................19
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SUNSTAR BEVERAGES
Introduction:
The Sunstar Beverages is a new firm going to start its operation in Gujrat. It will start
with an energy drink product with the name Power Trip. Sunstar will be a partnership
firm. The names of partners are given below. The firm is going to start its operations in a
limited geographical level. The companys growth policy is to fulfill the customers need
with quality product to grow.
Co-owners:
Aftab Siddiqui
Haseeb Razzaq
Rizwan Safder
Saadat Meeran
Shayan Nadeem
Tayyaba Kanwal
Description of Business:
This business provides unique energy drink with mix fruits flavor without any harmful
chemical. We provide healthy mix fruit energy drink with high quality and affordable
price.
Financing:
Initial financing is PKR 10,00,000. This finance will cover office exp, marketing exp,
plant and office rent.
This report is confidential and is the property of co-owners listed above. It is intended for
use only by the persons to whom it is transmitted, and any reproduction or divulgence of
any of its consent is prohibited.
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SUNSTAR BEVERAGES
Executive Summary:
Mission:
Our mission is to serve people by providing quality energy drink
Sologon:
FEEL THE POWER
Vision:
Our vision is to capture gujrat market by providing quality energy drink at low price in
order to keep people healty and fit.
Objectives:
Maintain positive, strong growth each year not withstanding seasonal sales
patterns.
Achieve a comprehensive output in market penetration.
Decrease customer dissatisfaction simultaneously.
A double to triple digit growth for the first five years
Increase the profit margin by adequate percentage each quarter through efficiency
and economy of scale.
Maintain a significant research and development and advertisement budget to
enhance future product developments.
Keys to Success:
The keys to success are designing and producing such type of products that meet market
demand. In addition, our Company must ensure total customer satisfaction. If these keys
to success are achieved, it will become a profitable, sustainable company specifically
which will produce long lasting results as well.
Company Highlights:
The firm is going to start the operation to fulfill the need of the market segment that still
has not been fulfilling properly. The market segment which is known as the energy drink
is our focus. The people today have too much busy life. Their tight work routine absorbs
all the energy from their body and soul. In this situation they need something that fulfill
their energy need and make them fresh instantly.
There are some products already exist in the market to take advantage of that segment of
market. But the fact is that the competition is not so stiff in this segment. Another fact is
that the products which already exist in the market have a high rate.
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The fundamentals of our business will be to fulfill the need of the people to remain
energetic with our world class product at an affordable price. We take our customer as
our first priority while taking any decision.
Our target market of our mix fruit Energy drinks are mainly targeted towards those who
need some sort of energy boost. Now everyone is facing the super-charged, over-worked
lifestyle, but young people are especially vulnerable to persistent exhaustion and
insufficient energy. We will specially make our marketing efforts around Teenagers,
Adults, and also Late 50s.
The owners are the firm is the partners in the firm who dont have any intention to go in
the public. The names and share of the partners are mention in the operational plan of the.
The capital can be raise from the banks as well if necessary at any time.
The industry has a very bright future as everyone expecting from the trends prevailing in
the market. The energy drinks demand is rising as compared to the other drinks available
in the market. The people are coming more and more towards the energy drinks not only
to get their selves fresh but also regain the energy of the body which they loss during the
everyday chores of work. As the share of industry is rising as the time passes on so to
launch a business in such an environment where on one side the industry share of total
market is increasing and on other side not much competitors are available in that segment
looks like a very vise decision.
The one weakness which we have is that we are new entrants in the industry as well as
well we do not have the as much financial resources as the other competitors have. But
the positive point is that we can still successfully compete with competitors due to our
strategy. The one weakness that we have few financial resources is overcome by our
strategy to start with a small geographical region Gujrat. The advantage which we have
over the competitors is that all the partners belong to the same geographical region so
they are well familiar with the target population of the area. No matter that financial
resources are few but the extensive marketing strategy can be launched because of the
small geographical area. The close knitted connections of the partners in area and quality
product at affordable price can win a leaders place in that area for our product.
To fulfill this need and want of people we are launching our product with the name
Power Trip in the market. As we want to see the response of the public towards our
product before launch it on a vast level, so we are launching it in the regional area of
Gujrat in initial stages.
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Industry analysis:
The industry analysis for the drink concluded with following key points
for the drink.
i)
ii)
iii)
iv)
v)
vi)
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vii)
viii)
years or so.
The sales of our competitors are steady from the past three
ix)
years.
Our customers belong to the different social classes i.e.
x)
Target Market:
Teenagers
Adults
Gamerz
Sports persons
Target Market of our mix fruit Energy drinks are mainly targeted towards those who need
some sort of energy boost. Now everyone is susceptible to the fatigue of the supercharged, over-worked lifestyle, but young people are especially vulnerable to persistent
exhaustion and insufficient energy.
Competition:
Company is forming its own market with the unique concept of providing energy drink
with fruit flavor and original vitamins without the effect of any harmful chemical.
There are several other competitors who are providing energy drinks but we are specially
focusing on healthy energy drink with original fruit contents with low caffeine margin.
Energy Drink
Power Trip
Price
Rs. 30
Rs. 45
Rs. 40
Rs. 50
Red Bull
Monster
Throttle
Description of Venture:
This section will provide detail our product, size of our operation, office equipment, and
background of the entrepreneur
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Product:
Our product is fresh energy drink for those people who need some sort of energy boost.
But young people are especially vulnerable to persistent exhaustion and insufficient
energy.
This energy drink will keep them fresh and will give energy to their body
This energy drink will have unique freshness, high energetic calories and low price as
compare to the existing energetic drinks available in market.
Logo:
Size of operation:
We are conducting our operations in Gujrat city. We are lunching our energy drinks in
Gujrat city. This will be available in all beverages store, super markets and in shops.
Office equipment:
We have purchased well office equipment e.g. chairs, tables drink stands and other
necessary equipment tools.
SUNSTAR BEVERAGES
Many of our products are already in market which are very successful e.g. soft drink,
herbal oil, herbal shampoo many others.
Now we think that we should provide an energy drink to people who keep them healthy
and retain them fit and fresh.
Production Plan:
Ingredients
211
kj
0,5
10,5
(46.6kcal)
0
30
70
7,2
g
g/l
g/l
mg (min.40%
RDA)
g
g
Vitamin B 5 2
mg (min.33%
RDA)
Vitamin B 6 0,8
mg (min.40%
RDA)
Vitamin
B12
mg (min.40%
RDA)
0,4
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STAGES OF PRODUCTION PROCESS:
1. Reception
Selected different fruits are first received at the Production Plant.
2. Crushing
Then the fruits are crushed after removing solid impurities through
Sieving.
3. Maceration
During this process, the wet crushed fruits are left in the hydro
alcoholic solution to separate into hydro soluble constituents by
soaking until the fruits have taught the proper amount of tannins.
4. Alkalinisation
Next, a solution of caustic soda or sodium hydroxide (NaOH) is
added to the obtained extract in order to precipitate alkaloids.
5. Filtration
At this stage, the alkalized extract is passed through a filter in
order to remove any suspended solid particles.
6. Acidification
After that, the former alkaline extract is acidified. Finally, the
obtained ERG - A20 Extract is bottled and stored.
Operational plan:
Operational plan of the product includes inventory, shipping, storage, inventory
control procedures, and customer services.
i)
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ii)
iii)
iv)
part time workers at a cost of Rs. 300 per day which will
train our employees.
Finished products of the drink will be stored in company
v)
vii)
Marketing plan:
Product:
Power Trip energy drink water contains Carbonated water, high fructose syrup and/or
sugar, Citric Acid, orange and apple juice from concentrate, natural flavors, Sodium
Benzoate, Sodium Polyphosphates, Caffeine, Erythrism Acid, Maurine, Calcium
Imodium Etta (to product flavor), Potassium Benzoate, Brominates Vegetable oil.
Nutrition Facts
Serving size: 1 can (8.4oz);
fat 0g;
calories 120;
total
cholesterol 0mg;
protein 0g;
SUNSTAR BEVERAGES
riboflavin 20%;
B12 10%;
vitamin B6 10%;
vitamin
Company Name
SUNSTAR BEVERAGES
Brand Name
Power Trip
Packaging
Capacity/can
250 ml
Tray
24 x 250ml
Disposable Pallet
160 trays
Pallet weight
1150kg
Pallet dimension
100x120x?150cm
Transportation
Payment
Packaging:
Designing and Packaging many energy drink companies are more exclusive in their
marketing efforts because they gear their products and advertising to a very specialized
group. These groups include gamers, extreme sports enthusiasts. You can see the effects
of this emphasis on such a target market because it is seen in the advertising campaigns
of energy drinks.
Place
Power Trip focuses on the big and high growth market shared cities of Pakistan like
Karachi, Lahore, Islamabad and Multan. Power Trip is also focusing on small cities so
that their product will be available even in the small shop of rural area.
Main Suppliers
Different suppliers in beverage sector in Gujrat.
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Some of major store retailers are:
Super markets
Departmental store
Convenience store
Price:
Pricing wise, we follow our motto "Classy but not expensive". As a result, we offer a high
quality and fashionable product at a lower price. It allows us to position ourselves as one
of the best quality/price balanced brands.
This provides our partners an opportunity to sell a high quality product, while increasing
their margins and offering higher profits to their re-sellers.
Promotion:
We will promote our product by using different communication channel.
Communication Channels
Bill boards
Local Newspapers
Advertising Campaigns
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Organizational Plan:
The Power Trip company will be a partnership firm. The partnership will lie between the
founders of the company. Partnership will be according to their share of capital invested
in the firm. Profit will be distributed between them as per their percentage share in the
firm. The every decision will be taken with the consensus and majority of votes will be
required to take the decision. On every important document the signature of the at least 3
members should be there. This will also imply on the financial side of the firm. Partners
and their contribution to capital is as follow
Name of Partners
Aftab Siddiqui
Haseeb Razzaq
Rizwan Safder
Saadat Meeran
Shayan Nadeem
Tayyaba Kanwal
Contribution
19%
15%
16%
19%
18%
13%
Hierarchal Structure:
The hierarchal structure of the Power Trip company is as follow:
Board of Directors------------------------------------------
Partners of Firm
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The Organizational Chart:
Board of
Directors
CEO
Finance
Marketing
Manager
Manager
Finance
Officer
Finance
Officer
Marketin
g Officer
Marketin
g Officer
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Human
Resource
Manager
HR
Officer
HR
Officer
SUNSTAR BEVERAGES
Financial Plan:
Projected financial statement of company listed below:
2009
2010
2011
6600
(2200)
4400
9000
3000
6000
12000
4000
8000
1630
900
400
200
200
70
400
3800
600
1950
900
700
350
330
70
550
4850
1150
2500
900
1100
600
550
70
700
6420
1580
650
120
300
1070
400
300
(70)
630
1700
100
100
1000
600
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Total owner equity
Total Liabilities & owner equity
1600
1700
4000
Sales
Total Cost
3000
2000
1000
0
0
50000
100000
150000
200000
250000
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The fixed cost line runs parallel to the horizontal axis meets the
vertical axis at a point which represents a total fixed cost.
The total cost line starts where the fixed cost line meets the vertical
axis ends at the point which represents anticipated sales on the
horizontal axis and total cost of the anticipated sales at the vertical
axis.
10
3800000
190000
3800000 / 30 10 = 190000
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Appendix:
The contract of lease of land and building.
The lease contract of the machinery.
The partnership contract between the partners of the firm.
The agreement with suppliers.
Rental contract with the logistic facility provider.
Market Research:
Among college energy drink users, consuming energy drinks is particularly popular for
insufficient sleep, when one needs more energy in general, to drink with alcohol while
partying, and when studying for an exam or completing a major course project. Drinking
three or more for a given situation occurs more frequently among those who consume
energy drinks for three or more of the six situations that were assessed. Side effects of
consuming energy drinks and headaches occur in many energy drink users.
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