The Entrepreneurial Mind

Members:

Rove Joseph Villanueva

Ojae Lorenzo Esparago

Adrian Soriano Philip

Edrick Tan

Geremy Andrew Fino

Chapter II

Type of business model

The SPIRIT Beverage Corporation uses Naert’s model in pursuing the purpose of the

business. Naert, dean of the Antwerp Management School at Belgium, believes that value creation

is the purpose of business. In Naert’s model states that creating economic and societal value at the

same time can help achieve positive gains for both business and society. SPIRIT Beverage

Corporation follows the same principle on creating value from both economy and society. The

company create economic value by producing products, delivering goods. In terms of creating

societal value the company produces products that is beneficial for customers and consumers. By

widening the range of whom the product is beneficial, the company produces product that covers

broad area of dimensions of societal value. Societal value has many dimensions such as, Safety,

Health, Poverty, Education, Gender Equality and Multicultural society, the SPIRIT Beverage

Corporation tends provide a products that covers this needs of society.

Key Partners

SPIRIT Beverage Corporation acquired partnerships with other successful companies.

These are Yongkang Enjoy Industry & Trade Co., Ltd., Puregold, and Maharlika Pilipinas

Basketball League. Yongkang Enjoy Industry & Trade Co., Ltd. is a professional manufacturer

and exporter of metal drinkwares such as sports bottles, travel mugs and thermo flasks. Maharlika

Pilipinas Basketball League is a regional men’s semi-professional basketball league in the

Philippines. It was founded in 2017 by politician and professional boxer Manny Pacquiao. MPBL

will help promote and advertise the products through their events and campains. Yongkang Enjoy

Industry & Trade Co., Ltd. provides bottles needed for the products. Puregold distributes the

products directly to customers and retailers.

Key Activities

To achieve successful production of the Spirit Drink product, the SPIRIT Beverage

Corporation performed activities to fulfill the business purpose. The company formed a Research

and Development group to develop an upgrade of the energy drink product into a product that

helps in relieving muscle pain. For Advertisement, the company has TV commercial, Billboards,

Online Advertisement, and sponsors musical event and Sports fest. In order to improve the

company sales, the company conducts a “Free taste” services to let the customers experience the

effectiveness of the product. To achieve successful production of the Spirit Drink product, the

SPIRIT Beverage Corporation performed activities to fulfill the business purpose. For value

proposition, the company perform various activities. The company focuses on producing a
product with medical benefits to give the customers the innovation of an energy drink. To achieve

this goal, the company performs product testing about the effectiveness of the product, through

this process, the results will become the foundation for the products goal to guarantee the

customers the benefits of this product.

For the distribution channels, the company made a partnership with different

organizations and associations, like UFC (Ultimate Fighting Championship) a sports related

organization which is one of the company’s target customers. Through partnerships in this type

of industry, the company can reach the customer’s attention through sponsorship and

indorsement to this company. It also serves as an Advertisement strategy because of the

popularity of this organization, through this the company can easily promote the product and

attracts attention to the customers.

To deepen the customer relationship, the company conduct a test in order to know the

feedback of the customers, example is doing a “Free taste” and a survey from a few customers

who tried the product to know their insights about the effectiveness of the product. Another

activities that the company conducts is a “Sale” and goods bundle. The purpose of this activity is

to gain more sales from the partner Distributors and to attract the attention of the customers

and consumers.

For Revenue streams, the company participates on sports event such as UFC and UAAP.

Using this famous organizations and associations the company was able to sustain the revenue

streams.
Key Resources

Spirit Drink provides the consumers the muscle relaxation that they need particularly the

athletes which mostly have an active physical activities. The product required different types of

herbal medicine such as taurine, fight fatigue, anti-inflammation particularly skin allergies, help

to lose weight and lastly to help consumers muscle to stimulate properly. The Spirit drink can be

distributed to selected markets and local distributors such as PUREGOLD, Super 8 and etc. Since

in today society, social media is very relevant to the people particularly millennials it would be a

big help if the producers or company will be able to access public relation such as publicity through

social media and lastly the feedback will be quicker. It can also be endorsed in active sports

organizations such as UAAP and UFC where in players and fighters in different categories can

take the Spirit Drink to help them relax their muscle and improve their physical performance

Basically since the product can be advertise through social media platforms the costumer producer

relationship can be improve and enhance with the use of sender - receiver cycle which include

feedback since the consumer can relay their feedback it would be a big help to established a good

relationship between the two major sports Since the Spirit Drink can be advertise in active sports

organization such as UAAP and UFC, it can help them stream a revenue, Since UAAP and UFC

are held almost every year it can help the company to earn for its revenue.
Value Proposition

Spirit Drink provides the customers, preferably athletes and physically active people muscle

relaxation through the herbs included in the drink. Unlike the competitors that only gives the

customers energy, SPIRIT Drink gives relaxation and energy. That gives SPIRIT Drink an edge

in the market in terms of value and demand. Many athletes experience muscle inflammation and

fatigue cause by training. SPIRIT Drink aid them through the herbs included in the drink. Athletes

and people working in the construction industry needs something that can boost their physical

performance. SPIRIT Drink gives them the energy that they need for the day while helping them

relax. We give our athlete costumers a drink that boost their physical performance and helps fight

fatigue. Not just athletes, we can also offer our product and services to the working class mainly

in the construction industry. SPIRIT Drink provides them a beverage that can help them in their

field. The drink features Taurine for boosting physical performance, Guarana to fight fatigue, and

Coumarin for anti-inflammation.

Customer Relationship

As a small company, SPIRIT Beverages Corporations product such as SPIRT Drink, has a

huge advantage when it comes to customer service. The size of the company makes the feedback

from the customers easier because of the accessibility the internet gives. In order for the company

to improve the services, the company listens to every feedback whether it’s a complaint or a

compliment. Mainly because the company promise the customers good services.
Channels

SPIRIT Drinks sells directly to local distributors such as supermarkets like, PUREGOLD

and SUPER 8. One of the distribution channels of the company is through Internet. The company

provides info about the products such as where local distributors the product available is, and

events through social media. The customer can comment for feedback. The company will also

conduct online poll for events so the company knows what the customer wants. Using internet

the company can easily connect to the customers and also good for advertising.

Other companies also uses Internet as Distribution channels, one of the reason is most

people are active on internet so that the products has wide range of viewers through this channel.

Using the internet is more efficient for distribution channel, it can be indirectly or directly deliver

goods to the customers.

Customer Segment

Everybody can enjoy Spirit Energy Drink. Anyone, tired or not, can drink this beverage

but those who work excessively all day, stay up for several hours and play exhausting sports or

just about anyone who is really active physically, will get the most and best out of Spirit Energy

Drink. People who exert force extensively, will experience enormous amount of stress and fatigue.

These are the people best suitable for this energy drink.

Athletes are one the most important customers because they exert a huge amout of force and go

through a lot of tiring exercises that causes a lot of stress and induces muscle fatigue. Constructions

workers are also highly valued customers because of the wide range of tasks they do the sites.
All of these tasks requires physical strength and mental alertness. Most of them work for several

hours which will give them stress that limits their physical capabilities.

Cost Structure

SPIRIT Beverage Corporation is a manufacturing business that produces energy drink. The

company has significant amortization cost and other fixed cost including taxes and insurance. The

SPIRIT Beverage Corporation is transportation, utilities, materials and part is a variable cost of

the company. The company cost 20% of its income for monthly loan payment with a 5.25% interest

rate. The company's Income ranges from Php.500,000.00 and above, because of its taxable income

the company cost 32% income tax rate. Regardless of the policy limits, the company pays 12.5%

for general liability insurance per year.

Revenue Streams

The product of the SPIRIT Beverage Company are delivered or sold directly to the

customers, distributing companies and retailers. The customers can buy the product directly to the

manufacturer as a loyal buyers and then can be sold by the distributors and retailers. The loyal

customers are paying the energy drink product of the company and the effectiveness of its factors

and benefits to the consumers that differs to other companies with the same kind of product. The

revenue model of the SPIRIT Beverage Corporation is Transactional revenue model. The company

sells directly to the customers that are willing to pay for the product. The pricing of the product is

Value-based pricing. In order to sell product that satisfy the consumers and gain trust from the
business partners or customers, the pricing focuses on customers as a determinant of the total price

or value package.