Table of Contents

Executive Summary 2
Company Overview 4
Mission Statement
Credo
Product Overview
Management 6
Operations 7
Company Analysis 8
Competitors
Comparative Analysis
Target Market 9
Market Segmentation
Market Potential
Marketing Plan and Execution 11
Strengths and Opportunities
Weaknesses and Threats
Strategy and Execution
Finances 12
Break-Even Costs
Return on Investment

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Executive Summary

Sip Guard ​is a technology and manufacturing company that produces disposable cups
that indicate the presence of a rape drug when placed within the cup. The aim of this
S-Corporation is to prevent sexual abuse and assault in high school and college students as well
as young adults. In a world where one in five women will be raped in their lifetime and one in
three female rape victims are raped between the ages of eleven and seventeen, there is a dire
need for more methods of preventing sexual abuse and assault. From these astounding statistics
came the idea of ​Sip Guard​, a disposable plastic cup that has the ability to indicate the presence
of a rape drug in the cup’s liquid. Currently, 44% of men and 56% of women claim they’ve
unknowingly had their drinks spiked. Out of those respondents, 19% experienced their first drink
spiked in high school, 52% in college, and 37% as a millenial. Consequently, the aim for this
product is to alert and inform possible victims of future assault of the drug’s presence in their
drink to not only ensure their own safety but also standardize the public rejection of rape culture.
In turn, ​Sip Guard hopes to minimize the chances of sexual abuse from the presence of rape
drugs.
The global disposable cup market was estimated at $14.25 billion in 2019 and is expected
to reach $15.20 billion in 2020. Additionally, the global disposable cups market size is
anticipated to hit around $26,897.2 million by 2026. Although the demand for disposable cups is
being challenged by growing environmental concerns, ​Sip Guard will be marketed towards ages
fifteen to twenty-seven seeking inexpensive options.
The presence of a date rape drug, including but not limited to roofies, xanax, and
valiumin, in the liquid prompts a color changing strip on the bottom rim of the cup. The process
takes roughly thirty seconds to indicate the appearance of the color changing strip. Beyond the
physical capabilities of the cup that will prevent rapes, the goal is for our product and brand to be
a signal of safety to consumers that will standardize the public rejection of rape culture.
Manufacturing this product will combine two separate processes of making the disposable plastic
cup and producing the layer of film that will be attached to the bottom. While the production of
the cup will be separately outsourced to specialized manufacturers, our company will be
responsible for the production of the chemical substance that detects the date-rape drug and the

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process of fixing it the disposable plastic cup to assemble the integrated product. This will enable
us to avoid unnecessary costs and to focus especially on our marketing and advertising, as well
as to ensure an affordable option for our young customers. The statistics of the markets for
disposable cups together with the innovative functionality of our product and the collective
desire to decrease sexual abuse and assault offer a promising future for our proposed start-up
company.

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Company Overview

Mission Statement
Our goal at ​Sip Guard is to provide our customers with a vessel through which they can
avoid a possible life and psychologically threatening scenario. Our vision is for every person to
have full conscientiousness and agency over the contents they consume. Through our mission,
we hope to reduce the number of occurrences of rape.

Credo
Sip Guard emphasizes the need for society to no longer normalize and minimize the
defilement that is rape. We seek not to change society’s perception of rape, but rather to change
the culture behind it. Taking a firm stance through the symbol that is our product, we hope to
universalize the fight to end rape especially on college campuses in a public manner.

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Product Overview

Sip Guard is a technology and manufacturing company producing green disposable

plastic cups that indicate the presence of a rape drug within the cup’s liquid. The substances it
notifies includes, but is not limited to, common date rape drugs including ketamine, roofies,
xanax, and valium. On the bottom ring of the cup is a color-changing strip lined with a chemical
substance that prompts a neon blue color upon the notification of any such drug. Between the
color-changing strip and the liquid lies a semi-permeable membrane that allows the chemical
substance to react when exposed to the drug, but ensures the chemical substance can never cross
into the drink, guaranteeing ​Sip Guard follows proper FDA regulations. The process for the
color-change takes roughly 30 seconds to alert the consumer. If the strip is blue, then the
consumer is notified of the drug’s presence and avoids a potential life-threatening situation.
Beyond the physical capabilities of the cup that will prevent rape, the goal is for our product and
brand to be a signal of safety to consumers that will standardize the public rejection of rape
culture.

5
Management

Patrick Oh​ - ​Chief Executive Officer

Patrick Oh is the Chief Executive Officer of ​Sip Guard.​ Born and raised in Los Angeles,
California, Patrick is a rising senior at Loyola High School of Los Angeles.

Amaal Abdi​ - ​Chief Operations Officer

Amaal Abdi, rising senior at the Gwinnett School of Mathematics, Science, and Technology, is
the Chief Operations Officer of ​Sip Guard.​ Born and raised in Atlanta, Georgia, Amaal will
ensure that the operational aspects of ​Sip Guard​ are functioning as planned.

Taha Banatwala​ - ​Chief Financial Officer

Taha Banatwala is a rising senior at Staples High School located in Westport, CT. He currently is
the Chief Financial Officer at ​Sip Guard. H ​ is main focus is on maintaining the company's
finances and ensuring profitability in the long-term.

Marlene Monteilh​ - ​Chief Marketing Officer

Marlene Monteilh is a rising senior at Miramonte High School and the Chief Marketing Officer
at ​Sip Guard. Currently living in San Francisco, California, Marlene is responsible for the
Marketing Strategy, advertising and branding.

Rachel Guan​ - ​Chief Innovation Officer

Rachel is a rising senior at Haynes Academy in the Greater New Orleans area of Louisiana.

Laura Tan​ - ​Chief Research Officer

Laura Tan is a rising senior at the Spence School in Manhattan. She is the Chief Research
Officer of ​Sip Guard,​ where she is responsible for leading research efforts.

Veronica Lopez​- ​Chief Human Resources Officer

Veronica Lopez is a rising senior at the Kew- Forest School in Queens, New York. She is the
Chief Human Resources Officer at ​Sip Guard. V ​ eronica is dedicated to recruiting, interviewing,
and placing only the best workers for the company.

Karson Taylor​ - ​Senior VP of University Relations

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Operations

Sip Guard plans to conduct trial case studies in three isolated college and university
campuses across the United States. According to the US Department of Justice, about 51 percent
of college women state that they were sexually assaulted by their senior year; this astonishing
statistic raises the question - how are universities systems and we as a collective supporting
victims of date rape and sexual assault? Date rape and related offenses plague college campuses,
so ​Sip Guard intends to test our product at the top three universities with the most rape reports
according to the US Department of Education (adjusted with population): Brown University, the
University of Connecticut, and Dartmouth College.
Sip Guard will have a rented office and assembly space in Providence, Rhode Island near
the campus of Brown University - the university system in the US with the most reported rapes
in 2014. ​Sip Guard’s office and assembly space will mainly serve as an area where employees
perform administrative work in order to support and carry out ​Sip Guard’s mission statement.
Because ​Sip Guard’s will purchase solo cups at wholesale, our assembly space will employ
licensed software and hardware engineers to ensure our technology is of great quality and safe to
use. In the future, ​Sip Cup plans to employ business analysts, accountants, and sales managers to
ensure that the company’s profit margins are accurate, the business is gaining traction, and that
our product is effectively advertised to our target market.
After conducting trial studies at those three previously specified college and university
campuses, ​Sip Guard will conduct further research and development (view start-up costs) to
make ​Sip Guard t​ he most effective and user-friendly product on the market. Our consumers will
have the option to take a survey and provide feedback to improve ​Sip Guard and best prevent
date rape drugs from infiltrating college campuses.

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Company Analysis

Competitors
Sip Guard has 4 main competitors- Undercover Colors, DrinkSmart, DrinkSavvy, and
Solo Cups. Both Undercover Colors and DrinkSmart use a device that changes color when a
droplet of a drink is placed on it. Undercover Colors uses a small round device that can be put in
your pocket or purse while DrinkSmart is a coaster. DrinkSavvy never launched their brand, but
the premise of their idea was a glass and straw that changed color if the glass detected a drug in
their drink. Our last competitor is Solo Cup, the most well known disposable cup brand.

Competitive Advantage
Although ​Sip Guard h​ as a few competitors, there are a few main reasons why our product
will be distinguished from the others. First of all, both Undercover Colors and DrinkSmart
require the user to dip their hand into the drink and apply a drop of the liquid onto the detector
pad. With health concerns, especially due to COVID-19, this is unsanitary and a hassle for users.
Additionally, these products have high prices. UnderCover Colors is sold at approximately $5
per disposable device, making them inaccessible in bulk for lower income audiences. Although
DrinkSavvy never launched, if they were to launch, the flaw in their product would be that it is in
the form of a glass, which is not practical for parties because no one takes a glass to a party, and
would most likely be very expensive. Our last competitor, the Solo Cup, is our biggest
competitor in the disposable cup market. Our product is noticeably different from the Solo Cup
by addressing the issue of drugging, and the difference of the purpose of the product will
minimize the competition. ​Sip Guard addresses all of these issues by being more sanitary, by not
having to touch the drink, inexpensive, which lets a wide audience of party goers use the
product, and single use, similar to the solo cup.

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Target Market

Market Segmentation
Sip Guard plans to target primary college and teenage students that are most affected by
date rape drugs. According to the Rape, Abuse & Incest National Network, women ages 18-24
are at an elevated risk of sexual violence and related crimes; women in college are three times as
likely to be victims of sexual assault than all woman. Additionally, according to the ​Journal of
Studies on Alcohol and Drugs,​ 15 percent of women are raped while incapacitated by alcohol or
drugs - the two primary date rape substances. The study also concluded that 18 percent of the
women said they’d been raped while incapacitated before college, and 41 percent of those
students were again raped while incapacitated in college. Taking these alarming statistics into
consideration, ​Sip Guard decided that our target market will mainly include college-aged female
students (and non-students). Because a Campus Safety study found that 99 percent of sexual
assault perpetrators are male, our target market identification does have a focus on targeting
female college-aged students, but we are certain that the student body as a whole could benefit
from our product and its impact on public safety.

Market Potential
Lack of campus safety and security has been an issue that plagues college campuses
across the US - sexual assault, targeted hate crimes, and police brutality have infiltrated even the
most safe college campuses and threatened the safety of students. With many colleges ignoring
students’ plea to look into sexual assault cases and related crimes, students - especially women -
feel ignored, abonded, and neglected in an institution that is supposed to protect their safety. ​Sip
Guard took it upon themselves to provide a product that will attempt to protect our students from
sexual assault and date rape, and the demand is high. While other campus crimes have decreased,
a 2016 study by the Institute of Education Sciences found that sexual assault crimes have
skyrocketed on college campuses over the past fifteen years. Students are in dire need of help,
and ​Sip Guard​ will deliver.

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 The global disposable cups market size was estimated at $14.25 billion in 2019 and is
expected to reach $15.20 billion in 2020. Additionally, the global disposable cups market size is
anticipated to hit around $26,897.2 million by 2026. Although the demand for disposable cups is
being challenged by growing environmental concerns, ​Sip Guard will be marketed towards party
goers seeking inexpensive options. Ultimately, the growing disposable cup industry together
with the collective desire to decrease sexual abuse and assault offer a promising future for our
proposed start-up company.

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Marketing Plan and Execution

Strengths and Opportunities

- Prevents the ability to spike drinks with date rape drugs/ lower the numbers of rape cases
better than nail polish (no one wants to put their hands in their drink especially after
COVID-19)
- Fast-working (roughly thirty seconds to indicate the appearance of the reflective strip)
- High accuracy rate (99.3% effective)
- Easily disposable
- Can detect as little as 1/4 of the minimum dose of the common date rape drugs, and is by
far the most sensitive test for detecting date rape drugs in beverages
- Works in more than 100 alcoholic and non-alcohol beverages including beer, wine,
liquor, soda, juice, milk/cream, tonic, and water
- Possible partnership with Solo Cup in the future
- Could expand the range of drugs that it is viable for
- Expansion into international markets
- Expansion to Music Festivals and Concert venues

Weaknesses and Threats

- 4 main competitors, 3 of which are products with similar drug detection abilities
- doesn’t work in hot beverages, such as coffee and tea, due to the high temperature of the
liquid
- Currently only viable for most common date rape drugs such as Roofies, Xanax, Valium,
Versed, Serax, Restoril, GHB, and Ketamine

Strategy and Execution

- Promotion to Multicultural Greek Councils, Interfraternity Councils, and Panhellenic
Councils across the nation’s universities
- Promotion especially across the campuses of Dartmouth, Brown, and the
University of Connecticut, which are the top three universities in the US with the
most rape reports
- Advertising through the use of social media platforms such as Instagram, Facebook, and
Snapchat, Twitter, and TikTok and Youtube Ads
- Promotion through the use of college influencers who sponsor our product on campuses
- Website with Search Engine Optimization

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 - TV advertisements on channels such as Bravo, ABC, Fox, ESPN, and other channels that
attract the most viewers aged fifteen to twenty-seven
- Access through all stores like Target, 7 Eleven, Walmart, Walgreens, etc. in the
disposable cup isle
Finances

Financial Overview

In order to get Sip Guard up and running, we will need $2,181,228. After the initial investment,
the first four years will not produce a profit. However, after year four we will have a positive
cumulative profit. From year one to year two, there will be a 67% growth in product sales. From
year two to year three, there will be a 40% growth in product sales. Each year as the number of
college towns increases, the number of representatives increases––hence the consistent increase
in marketing costs. The management team will be taking slim salaries due to being college
students and focused on maintaining the profitability and future of the company. The COGS
includes how much the cost of our technology is and what the price of being these cups at
wholesale are. We calculated the wholesale price by assuming it would be 80% of retail. The
return on investment in year 5 will be 0.358, making this a highly attractive and lucrative
investment opportunity due to positioning for future growth.

Five-Year Projection

Financial Statement Year 1 Year 2 Year 3 Year 4 Year 5

Sales 1,620,000.00 2,700,000.00 3,780,000.00 6,480,000.00 10,800,000.00
Cumulative Sales 1,620,000.00 4,320,000.00 8,100,000.00 14,580,000.00 25,380,000.00

COSTS
Freight/Transportation 1,800.00 3,000.00 4,200.00 7,200.00 12,000.00
Shipping from DE to RI 2,500.00 2,500.00 2,500.00 2,500.00 2,500.00
Labor 71,928.00 119,880.00 167,832.00 287,712.00 479,520.00
Management Salaries 90,000.00 90,000.00 90,000.00 90,000.00 90,000.00
Rent 51,000.00 51,000.00 51,000.00 76,500.00 76,500.00
Insurance (% of sales) 32,400.00 54,000.00 75,600.00 129,600.00 216,000.00
Marketing 19,200.00 32,000.00 44,800.00 76,800.00 128,000.00
Legal 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00
R&D 500,000.00 100,000.00 50,000.00 0.00 0.00
Utilities 9,600.00 9,600.00 9,600.00 13,000.00 13,000.00
Office Supplies 10,000.00 0.00 0.00 0.00 0.00

Net Costs 838,428.00 511,980.00 545,532.00 733,312.00 1,067,520.00

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Gross Profit 277,200.00 462,000.00 646,800.00 1,108,800.00 1,848,000.00
Cumulative Gross
Profit 277,200.00 739,200.00 1,386,000.00 2,494,800.00 4,342,800.00
Cost of Goods Sold 1,342,800.00 2,238,000.00 3,133,200.00 5,371,200.00 8,952,000.00
Cumulative Net Cost 2,181,228.00 4,931,208.00 8,609,940.00 14,714,452.00 24,733,972.00
Operating Profit -561,228.00 -49,980.00 101,268.00 375,488.00 780,480.00
Cumulative Profit -561,228.00 -611,208.00 -509,940.00 -134,452.00 646,028.00

Break Even Point

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