FUNNER THAN WATER

AQUAVITA
“FUNNER THEN WATER”

Course Code: FIN 435

Sec: 1

Submitted to:
Dr. Tanbir Ahmed Chowdhury
Professor Department of Business Administration
East West University

Submitted By:
Tamim Rahman
ID: 2017-3-10-011

Submission Date:
 Letter of Transmittal

12th August, 2020

Dr. Tanbir Ahmed Chowdhury

Professor
Department of Business Administration
East West University

Subject: Request for Acceptance of Report.

Dear Sir,

It is my great pleasure to submit the report on “AQUAVITA” under the tagline “Funner Than
Water” as stated by your instructions. I have tried our best to make this report as comprehensive
and informative as possible within the allowed time.

For any additional clarification about the report please inform me; I will be gladly available to
clarify in details.

Thanking you again for your sound co-operation.

Sincerely Yours,
………………………………
Tamim Rahman
ID: 2017-3-10-011
Department of Business Administration.
East West University.
 Acknowledgement

The experience of writing this report is one of the most memorable academic experiences I’ve
ever had. All praises to the almighty. Subsequently without the support, patience and guidance
of my teacher, this study would not have been completed. It is to him whom I owe my deepest
gratitude.
My honorable teacher Dr. Tanbir Ahmed Chowdhury, professor at East West University, I am
highly indebted to you for your inspiration, kind assistance, valuable suggestions & wise
guidance during making this report.

Your precious suggestion and supervision have made this report a good manner.

I would also like to say thank to my family for their continuous support. I remember all of my
friends whom I always find beside me and who made my life easier and worthy.
 Executive Summery

The Integrated Business Plan is designed for “AQUAVITA”. This plan includes Vision and
Mission, Justification and Objective, Market Analysis, Production Strategy, HR policy,
Corporate Strategy, Competitive Analysis, Opportunity Analysis and other IMC objectives as
well as promotions, distributions, public relations and sponsorship.
This plan describes the full details of our entertainment service as well as the evaluation of the
success of the Marketing and Business plan along with the future plan.

“AQUAVITA” has the emerging opportunity in beverage industry in Bangladesh as there is a

few products like vitamin water that has been available in Bangladesh. Mix of integrated
marketing plan will be implemented to grab that opportunity.

Focusing on young potential customers the brand image of “AQUAVITA” has been developed.
To better reflect what “AQUAVITA” stands for the corporate image has been developed by
memorable logo and slogan which stands for vitamin water. Furthermore, financial budget and
their procedure have also been developed for this fully new product in Bangladesh.
 Business Description
Company Brief

“AQUAVITA” is an upcoming brand which is going to supply flavored vitamin water in the
beverage industry of Bangladesh. This will be the first brand ever in Bangladesh to officially sell
flavored vitamin water to people in a convenient way. We are going to supply people this water
at an affordable price keeping the best quality of coffee.

Mission
We know, people are now very much judgmental about what they are buying from the market.
So, to set that bar, we will have to be very careful about what we are supplying. Therefore, our
mission is “providing the best quality of flavored vitamin water with and affordable price; The
logo should be user friendly and so is the bottle; The slogan should be understandable”.

Vision
“To be the first and the finest affordable quality flavored vitamin water brand of Bangladesh”

Logo
Slogan
The slogan for “AQUAVITA” is

“FUNNER THEN WATER”

We have decided this slogan because:
 We need water to survive, so we tried to add innovative flavor and qualities. To make
them more enjoyable and healthier.
 As, we are offering a water in different flavors so, it will be a can full of refreshment.
 As, our main target market is youth, and fun and taste has a huge impact on them so, we
use the word in our slogan.
 Different color bottles have different taste and attributes.

Justification
The youth generation nowadays have become more health cautious. They are focusing to have a
healthier body and mind. They also love different flavor and taste of beverage.They do
experiments with everything and taste is one of them. In this case the everyday water is very
important for us. But considering the youth demand, we thought of flavored vitamin water. So
that day can get the necessary vitamins needed with taste. There is no other company in
Bangladesh who is serving this type of product in spite of having a huge demand and market.
Though there are some foreign brand who is supplying vitamin water in Bangladesh, but those
are hardly available in some super shops and the prices are very high compare to the quality. In
this case We can see there are huge opportunities for us to launch a flavor vitamin water in
Bangladesh. So, if we can grab these opportunities and if we can ensure a good quality, we better
go for launching “AQUAVITA”.
 MARKET ANALYSIS
To do a market analysis, we need two types of data
 Primary Data.
 Secondary Data.
Primary data of this study was collected through an online survey. We did a questionnaire survey
with 10 question, and asked people to give their opinion about canned coffee in Bangladesh. We
identified the statistics of demand and supply of canned coffee. Here is the result;

68.2% of people are saying they are not happy with the supply and price of the Flavor water.
Because the products are hard to find in Bangladesh, are only available in some specific super
shops and the prices are very high compare to the quality. 22.4% are happy about the product.
Rest 9.4 are not sure wither they are happy or not.
Here 93.3% people said that they want a new flavored vitamin water brand in Bangladesh. That
means there is a huge demand of this kind of product compare to the supply.
Secondary data of this study was collected from internet.

Competitive Analysis
As we said that we are going to introduce flavored vitamin water bottle, first we need to identify
who are the competitors of my brand in the market. We know there are two types of competitors;
 Direct/Industry competitors
 Indirect/Market competitors
For our brand, the direct competitors are all those company who also serves favored water/
energy drinks in the market. Gatorade is the biggest competitor for us in this territory. But some
other companies like, “Pocari Sweat, NOS, Bolt24” are also there. And, indirect competitors are
those who are not actually serving flavored vitamin water but serving some cold beverage what
can cause our customer fall in confusion that if they should buy our product or any other cold
drinks. In this case, there are vast competitors. Brands like Pepsi, Seven-up, Pran, Mountain Dew
are serving cold drinks in the market. Though their product is flavored vitamin water, but these
products can catch some of our buyer to buy their beverage instead of flavored vitamin water.
 Production Strategy

To establish this brand, first of all we need to decide and find out what are the resources we
need. For a product like “AUQVITA”, we need factory, plant, equipment, machineries, offices.
We need a huge large budget for this.
First, we need a factory where we will store the materials and element used to produce our
product, examine all the elements, produce the product, packet the product. That means whole
production process will be here.
We need adequate land where we will plant our factory and the office.
We need equipment and machineries to purify and prepare the product.
So, for the land, we have decided to take a land on lease for next ten years in Gazipur for our
factory. It will be around 1 Acres. Then, there once the factory is made, we will set our all
machineries. After that, we will gather our raw materials over there and we will start production.
For the production, our main raw material is water, flavor, vitamins and minerals. We will
collect our water from the northern side of the country. As Bangladesh has adequate supply of
fresh water, we don’t need to import it. On the other hand, the flavor, vitamins and minerals will
be produced in our county’s top quality laboratory. There are a lot of top quality laboratory to
produce the flavor and minerals we need. As all the elements are collected from our country the
production price will drop down by a huge margin. The elements produced by the laboratory will
be tested and will be made sure that they are maintained quality with other international brands.
So, as it is cheaper and cut down the production cost and time. Also, as it is in Bangladesh, we
will have a no freight cost. So, as we are just launching a completely new product, we will have
to make sure it consists the lowest cost with the best flavor.
Our bottles will not be produced by ourselves. To start a backward industry, we will have to be
an established company in the market. Otherwise we can be loosed twice. So, to avoid higher
risks we will not establish a bottle industry now. We will buy them.
 Finance and Planning
As a new company, one of the major jobs of us is to focus on ensuring the sales maintaining cost.
In the making of company budget, we will have to be very careful about the costings. Because
we will have to earn profit over that cost.

Sources of Expenditure
We will have a higher cost in the beginning year as we will build the factory and purchase the
machineries on the first year.
Particular Amount (Beginning of the Amount Rest of the Year
year)

Rent of land 6,00,000×12 =72,00,000 72,00,000

Establishment of factory 5,50,00,000

Prices of machineries 5,00,00,000

Prices of raw materials 1,00,00,000 1,00,00,000
Salary and wages 2,50,00,000 2,50,00,000

Packaging 70,00,000 70,00,000

Utility cost 10,00,000 10,00,000

Other costs 10,00,000 10,00,000

Advertising and promotion 25,00,000 25,00,000
cost
Total cost TK 15,87,00,000 TK 5,37,00,000

These are the estimated cost. We cannot say these costs will be exactly the same. The cost may
vary because of the economic condition. Also, each year our cost may not be the same. So, here
we are considering all the factors remain stable and so is the yearly expenditure

Now, since we know the total expenditure, we will have to make sure from where the business
will finance these expenditures.

Sources of Finance
As of now, we will start as a private limited company. We are 40 people together starting the
business.
From the members 70%
Bank Loan 30%

Earlier we have calculated that our total cost for the first year will be TK 15,87,00,000. 70% of
this TK 15,87,00,000 will be financed from the shareholders. That means the members will
contribute (15,87,00,000×70%) = TK 11,10,90,000. So, each member will contribute
(11,10,90,000÷40) = TK 27,77,250.
On the other hand, rest 30% will be collected from bank loan. That means through bank loan we
will get (15,87,00,000×30%) = TK 4,76,10,000.

Price

In our survey, we asked people about what price range they expect from us. Also, we have
studied the price of our competitions. We have seen all our competitors’ prices are TK 90+. And
in our survey, we have seen their expectations of prices are 35-50. So, this time we will go with
the customer’s choice. We will set the price TK 50 for each bottle. But we will have to make
sure that we earn profit. For that our cost should be minimized as much possible by keeping the
product quality superior.

Cost and Revenue Analysis

 We have estimated five years’ sales.

Particulars Year 1 Year 2 Year 3 Year 4 Year 5

Sales 10,00,00,00 11,00,00,000 13,00,00,000 15,00,00,00 18,00,00,000
0 0
Total Cost 15,87,00,00 (5,87,00,000+5,37 (24,00,000+5,37,0 5,37,00,000 5,37,00,000
,00,000) = 0,000)
11,24,00,000 =5,61,00,000
(adjusted) (adjusted)
Revenue/Lose (5,87,00,00 (24,00,000) 7,39,00,000 9,63,00,000 12,63,00,000
s 0)

Here, we can see due to higher cost in year 1 and year 2, we are going to have loss in these two
years. In the beginning of third year, we will have our break-even point. After the break-even
point, we will be generating revenue.

Marketing Strategy
Marketing Mix:
There are seven considerations in marketing mix. They are:
 Product
 Price
 Place
 Promotion
 People
 Process
 Physical evidence

Product:
This is the product that we are going to be served. This is “AQUAVITA”. It is a flavored vitamin
water served in a bottle. This a completely new brand and a new product in Bangladesh. It is
caffeine-free, non-carbonated, healthy hydration and has fruity flavors.
We are launching our new product with the help of our countries well not laboratory. They will
be healthy and will be flavored and refreshing with a touch of the verity of flavored and lightly
sweetened suing stevia. At the beginning, we will have only three flavors; grape, strawberry and
mango. Later on, if we get success, we will bring various flavors.
Our water will have zero calorie and full of vitamin C, B5, B6, B1, zinc, calcium. It is best for
people to get all the nutritional fact with the fun of different flavor.

Price
As we did a market survey and we got that people wants the price of each bottle to be 40-50, we
will set the price for each bottle TK 50 for 350 ml and 70 taka for 500ml. It is almost the half of
the competitor’s price that are available in Bangladesh.

Place
Initially we will serve on three major towns of Bangladesh. They are Dhaka, Chittagong and
Sylhet. We will supply our product to all the super shops and many cold-corner stalls in these
cities. We will make sure people don’t get any hardness to buy or product. Therefore, we will try
to make this product most available.

Promotion:
To do the promotion, we will use our official Facebook page. As our main target is youths, social
media will be a great platform for us to promote our product. We will do our advertisement in
social media and as well as in television. One of the best opportunities of social media is here we
can promote product by video advertisement and as well as poster advertisement. We will also
do college/ university campaign Here is the snap of our official Facebook page;

Here is some poster advertise we will use in promotion:

We are also hopping to promote our brand in sports industry:

Also, sometimes we will offer something for free as promotional gift if they buy more Kāfēi can.
For example, Aquavita sponsored bag, T-shirt, Mugs, posters ETC.

People
People are those who run them from the front-line sales stuffs to the managing director. It means
the company’s staff and employees who are assigned with the sales process. It is necessary to
have the right people in the organization because the success of the business depends on what
kind of people we have in our organization.
For our company, we will be very careful while selecting the right people. Our board of director
will set a HR department and they will hire the right people for the company.

Process
As a new company, we will have to be careful about how we will deliver our product. It is very
essential to deliver the product with customer’s satisfaction. It is a combination of tasks,
schedules activities and routines that allow people to use the service successfully. Our aim will
be to avoid boredom and ensure that customers are actively engaged with the service.
We will make our product most available to the customers so that they don’t have to go far to
buy our product. Usually it happens that people want to have something but due to
unavailability, they cannot buy that or they avoid buying that.

Physical Evidence:
It refers to the physical environment experienced by the customer. It is very important to have
physical evidence to make the customer know about the existence of the product. If the
customers don’t know about the product’s existence and if they struggle to find that, they will
never buy it.
For our product, we may offer the shopkeeper a fridge with our own logo to show it in front side
of the store. So once the customer will come to the shop, they will notice that and they will buy
our product.
Also, our official website and Facebook page is a kind of physical evidence.
Marketing Segmentations:
The marketing segmentation is the process of dividing a market into smaller segments of buyers
with distinct need. A market can be segmented in four ways.

We will divide our market into all four of these segmentations.

 In geographic segmentation, we will divide our customer based on their locations.

Earlier we have said that in the beginning, we will be serving in the three major cities of
Bangladesh; Dhaka, Chittagong and Sylhet. So, our target market are the people who are
living in these cities.
 In Psychographic segmentation, we will divide our customer by their social class,
values, attitudes and interests. In this case, people who value the quality and the taste in
product, will be our target market. Also, we may focus on people who are above middle
 class in society. The lower middle class and the poor people may not be satisfied with the
price of the product.
 In Demographic segmentation, we will divide our customer by their age, gender,
income etcetera. Our main target market in this segmentation will be the youth
generations; mainly students and people under age of 35 years. Old people will also be
attracted as it has many health benefit.
 In Behavioral segmentation, we will divide our customer in several segment based on
their purchasing behavior.

HR POLICY

We know that to establish an organized business, HR department is a must. HR department hire

and recruit the employees and employees run the organization. If we don’t have a bunch of good
employees, our business will collapse. Therefore, to recruit the perfect employee, we need to
have an HR department.
For doing the business on flavored vitamin water. we will need various types of employees like
engineer, researcher, laboratory workers, sales representatives, employees for various
departments. All of them together may not be needed at a time but they will have to be hired step
by step. Because all together, they are the organization for us.
Also, another job of HR is to make the employees perfect for us. They will work on development
of the employees. They will see what factors motivate employees to work hard and what
demotivates them. Based on the research, they will develop the employees.

ACCOUNTING DEPARTMENT

To establish an accounting department, first of all we need to decide on our accounting method.
We need to think if we will select cash basis accounting or accrual accounting method.
We know cash basis accounting is most perfect for a small business that tends to make
immediate payment for goods and service received. But in a large organization like: One major
job of this department will be distributing the salary among the employees. Reporting of
financial statements will also be done by this department. ”AQUAVITA” or in a B2B business,
accrual accounting is most preferable. Because here the record of income is made whenever the
sale occurs regardless of thinking whether the buyer paid for it or not. It is useful in informing
the business, how much expenses it is incurring each month and how much profit it is generating
against that expenses.
Then once the method is selected, we need to decide how many numbers of people will be there
in this department. Initially we will start with a lower number of people. We will decide the
number of people based on the workload. If the work load can be handled by 10-15 people,
initially we will start with those 10-15 people
We will have head of accounting, chief accountant, treasury manager, accounting manager,
accounting supervisor, bookkeeper in this department.
One major job of this department will be distributing the salary among the employees. Reporting
of financial statements will also be done by this department.

Risk Factors

While doing a business, there are several risks we face every day. Some of them are a kind of
risk that we can control with great management. Those are known as internal risk.
In case of internal risk, we may face agency problem. We know it arises when the manager
wants to rise his own benefits rather than the company benefits. There can be some
mismanagement of planning and due to that, we may face a risk of loss. Also, there can be some
accident within the organization due to unawareness. So, these types of risks are known as
internal risk and if the management process goes well, these risks can be minimized.
External risks are those risks that we cannot control by ourselves easily. There is no link with the
management and external risks. These risks cause by outsider or by nature.
In case of external risks, we may face some political problem. Suppose I have a significant
delivery in a specific day. But on that day, there is a government strike. So, we are facing risk.
Another risk can be caused by nature. Suppose on the delivery day, there is storm outside and we
couldn’t deliver the order. Or our product can be damaged due to an earthquake. So, we cannot
control these risks. Another external risk can be my competitors. Suppose suddenly a strong
competitor arrived in the market. Therefore, my product’s sale decreased and we cannot do
anything for that. So again, we are facing a risk. Technology can also be a risk. If my competitor
is more efficient in technology, I may lag behind.

Implementations
Now we have our total plan and forecasting. Now we know at which time what should be done
by the us. So, now the job is implementing the plan one by one.

Future Plan
 Bringing variations in flavors (at least two new flavors will be launched within next three
years)
 Introducing calorie free coffee.
 Supplying outside of major three cities.
 Focusing more on the activities of competitors.
 Enlarging the business with new technologies.
 Convert the company into a Public Limited Company.

Conclusion
A business without a plan like a boat without an oar. If a boat doesn’t have an oar, it has no
destination. It will just go with the flow. Similarly, if a business doesn’t have a plan, it will never
have a desire goal. And ultimately, there is a high chance to fail. So, to start a business, planning
is a must.
We are launching our product in Bangladesh with a proper business plan when there is no
competition in the market. We have a huge chance to be successful. But we will definitely fail if
we don’t follow the plan that we have designed.
Initially we are starting with a low budget. So, we need to be very careful in investing and
utilizing that budget. And if we get success, in future we will implement our all future plan that
we have mentioned above