1

ZEST

Syndicate 1
By
23020542001 - Krishnaveni Konar
23020542002 - Asmita Bagal
23020542003 - Shrishti Bajpai
23020542004 - Ayontika Banerjee
23020542006 - Abhyudaya Bhalekar
23020542007 - Yash Bhargava
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Table of Contents
1) Executive summary
Company Summary
Company Strategy
Vision
Mission
Services offered
2) Regulations and Licenses
3) Plan to attract investors
4) Organization Structure Experience and Qualifications
Professional Experience
Educational Background
Work Experience
5) SWOT Analysis
6) Competitors
7) PESTEL Analysis
8) Risks
9) Value Proposition
10) Services Service Description
11) Market Analysis Summary
Market Size
Statistics
Market Segmentation
12) Service Business Analysis
Organization and Structure
Industry Leaders Competition and Buying Patterns
Marketing Strategy
Marketing Programs
Strategic Alliances
Management Summary
13) Feasibility Study
14) Financial Statements
15) Business Modal Canvas
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Executive Summary
Prime Beverages (PB) is strategically positioning itself to capitalize on the burgeoning Indian
non-alcoholic beverage market by launching "Zest," a premium organic energy drink. The
company aims to cater to health-conscious consumers and plans to initiate a soft launch in key
states—Maharashtra, Karnataka, and Tamil Nadu—where demand for functional beverages is
significant. PB's short-term objectives include achieving ₹6 crore in profits by the end of 2024
and capturing 15% of the functional beverage market in these states during the launch phase.
Long-term goals involve expanding Zest nationwide by 2025 and establishing PB as a leading
brand in the organic energy drink segment by 2028.

PB's vision is to redefine consumer expectations through innovative, healthy, and sustainable
beverage choices. The mission emphasizes delivering high-quality organic beverages that
enhance consumer well-being while ensuring accessibility for all income levels. Compliance with
food safety regulations, including the Food Safety and Standards Act, is crucial for the launch
and ongoing operations of Zest.

To attract investors, PB has devised a structured approach involving market analysis,

networking at industry events, and showcasing commitment through personal investment. The
leadership team, including CEO Asmita Bagal and CTO Yash Bhargava, brings extensive
experience from the beverage industry, ensuring a strong foundation for Zest's growth.

A SWOT analysis reveals strengths such as the growing market and organic appeal, while
weaknesses include high competition and price sensitivity. Opportunities in health trends and
market expansion contrast with threats from health concerns and shifting consumer
preferences. The value proposition of Zest focuses on its organic ingredients, brand credibility,
and niche appeal to health-oriented consumers.

Overall, PB aims to leverage its established reputation to successfully introduce Zest, tapping
into the increasing demand for organic and functional beverages in India.

Business Description

Company Strategy:

Prime Beverages (PB’s) aims to expand its presence in the rapidly growing Indian non-alcoholic
beverage market by introducing high-quality organic products that cater to health-conscious
consumers. With increasing demand for organic and functional beverages in India, PB’s
strategy focuses on launching “Zest,” a new energy drink, in key states like Maharashtra,
Karnataka, and Tamil Nadu. These states represent a significant share of the national demand
for functional beverages. The company’s approach includes a soft launch in these states to
gauge consumer response and establish a foothold before expanding nationwide. PB’s pricing
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strategy ensures that “Zest” remains affordable while maintaining the premium quality that
defines its brand.

Objectives:

Short-term Objectives:
1. Successfully launch “Zest” in Maharashtra, Karnataka, and Tamil Nadu, and achieve at
least ₹6 crore in profits by the end of 2024.
2. Capture 15% of the functional beverage market in these states during the soft launch
phase.
3. Build robust relationships with key distributors across these regions to ensure efficient
market penetration and product availability.

Long-term Objectives:
1. Expand “Zest” across India by 2025 if the soft launch meets or exceeds profit targets.
2. Establish PB’s as a leading brand in the organic energy and sports drink segment in
India by 2028, contributing to the company’s overall growth in the non-alcoholic
beverage market.
3. Increase PB’s market share in the Indian non-alcoholic beverage industry to capitalize
on the country’s fast-growing market, projected to reach ₹1.28 lakh crore by 2028.

Vision:

Prime Beverages envisions becoming India’s leading provider of high-quality, organic non-
alcoholic beverages. The company aims to redefine consumer expectations by offering
innovative, healthy, and sustainable beverage choices that cater to the evolving lifestyle needs
of India’s diverse population.

Mission:

Prime Beverages is dedicated to delivering organic, high-quality, and functional beverages that
enhance the well-being of our consumers in India. We strive to lead the market with products
that are both innovative and accessible, ensuring that every Indian consumer, regardless of
their lifestyle or income, can enjoy our healthy beverages. Through sustainable practices and
strong partnerships, we aim to grow our business while positively impacting the environment
and the communities we serve across India.

Regulations and Licenses for organic and functional beverages

Food Safety and Standards Act, 2006:

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Section 31(1): Requires every Food Business Operator (FBO) to obtain a license from
the FSSAI to conduct food-related businesses, including the manufacture and sale of
non-alcoholic energy drinks.
FSSAI Licensing and Registration Regulations, 2011:
● Regulation 2.1: Specifies the types of licenses based on the scale of the
business (basic registration, state license, or central license).
● Regulation 2.2: Requires the application for a license to be made in Form B of
Schedule 2 to the concerned Licensing Authority.
Standards for Energy Drinks:

● Definition: Energy drinks are defined as non-alcoholic beverages containing

caffeine and other stimulants such as guarana, taurine, and B-vitamins.
● Ingredient Limits: Regulations specify maximum allowable limits for caffeine
and other stimulants in energy drinks.
● Labeling Requirements: Energy drinks must clearly indicate caffeine content and
any health warnings related to high caffeine consumption.
Packaging and Labeling Regulations:
● Nutritional Information: Must be declared per serving or per 100 ml.
● Ingredient Declaration: All ingredients must be listed clearly on the label.
● Health Claims: Any health claims made on the label must be substantiated and
comply with FSSAI guidelines.
Quality Control and Compliance:

● Regulation 2.4: FBOs must ensure compliance with all conditions of the license,
including safety, sanitary, and hygienic requirements as specified in Schedule 4
of the regulations.
● Inspection and Audits: The Licensing Authority may conduct periodic
inspections to ensure compliance with the standards set forth.
Trade License:
● A trade license from the local municipal authority to legally operate business.
Goods and Services Tax (GST) Registration:
● If annual turnover exceeds the prescribed limit, ensuring compliance with tax
regulations.
Organic Certification
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● If marketing products as organic, certification from a recognized body, such as

the Agricultural and Processed Food Products Export Development Authority
(APEDA).
How to attract Investors:
At Zest, we have planned a structured four-step approach
Step1:
● Market Analysis: We will conduct an in-depth analysis of the non-alcoholic beverage
market, focusing specifically on the energy drink segment. This includes identifying
trends such as the growing demand for organic and healthier options, as well as the
increasing popularity of sugar-free beverages.
● Competitor Analysis: We will perform a SWOT analysis of key competitors in the energy
drink market, such as Red Bull and Monster Energy, and identify differentiating factors
that set Zest apart. This will include insights into their marketing strategies, pricing
models, and product offerings.
● Consultation with Experts: To validate our business model and market entry strategy, we
have engaged KPMG as a consultant. They will provide insights into market feasibility,
potential weaknesses, and best practices in the industry.

Step 2:
As part of our strategy to attract investors, we are actively increasing our networking efforts:
● Industry Events: We will attend relevant trade shows, business fairs, and seminars
focused on the beverage industry. These events will provide opportunities to distribute
business cards, establish connections, and engage with potential investors.
● Organizing Informative Events: We plan to host events centered around the benefits of
our energy drinks, inviting potential investors to experience our products firsthand. This
will allow us to pitch our business model while showcasing the unique qualities of Zest.

Step 3:
To enhance our credibility and show potential investors that we are serious about Zest, we have
allocated a significant portion of our own funds to the business:
● "Skin in the Game": By investing our own money into the development and launch of
Zest, we demonstrate our commitment and belief in the business. This aligns with the
philosophy of technology entrepreneur Tim W. Knox, who emphasizes the importance of
personal investment in attracting external funding.

Step 4:
After establishing connections and hosting events, we will arrange face-to-face meetings with
interested investors:
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● Presentation Materials: We have prepared a compelling presentation, including a video

and other resources, to effectively communicate our business plan and product
offerings. This presentation will highlight our market research, financial projections, and
growth potential.
● Showcasing Past Successes: During these meetings, we will share success stories of
similar companies in the non-alcoholic beverage space that have attracted significant
investment. For instance, we can reference successful funding rounds of companies like
Athletic Brewing Company and Liquid Death to illustrate the growing interest in non-
alcoholic beverages.

Organization Structure
Our company's structure consists of corporates from various domains capable of resolving
multiple and complex (sales, human resources, legal, financial issues). We believe in
maintaining a healthy organizational culture thereby ensuring satisfaction of our customers and
employees.

Experience and Qualifications:

1. Asmita Bagal
A dynamic and visionary leader with a proven track record of driving growth and innovation in
the beverage industry. Asmita's strategic vision and strong business acumen have been
instrumental in establishing the company as a leading player in the non-alcoholic energy drink
market.
Professional Experience:
CEO, Zest Energy Drinks
● Spearheaded the launch and successful growth of Zest, a premium non-alcoholic
energy drink brand
● Built a strong and talented team of professionals across various functions, including
marketing, operations, and R&D
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● Developed and implemented strategic partnerships with major retailers and

distributors, expanding the brand's reach and visibility
● Oversaw the development of innovative product formulations and flavors, staying
ahead of market trends and consumer preferences
● Secured significant funding from investors to support the company's growth and
expansion plans
Vice President, Marketing, Refresh Beverages (2010 - 2015)
● Led the marketing strategy and execution for a portfolio of non-alcoholic beverage
brands
● Developed and implemented successful brand positioning and communication
strategies
● Managed cross-functional teams to deliver integrated marketing campaigns across
various channels
● Achieved significant growth in brand awareness, market share, and revenue during
tenure
Brand Manager, Hydrate Water (2007 - 2010)
● Responsible for managing the brand strategy and marketing activities for a leading
bottled water brand
● Developed and executed marketing plans to drive brand awareness and sales
● Collaborated with sales and distribution teams to ensure effective in-market execution
Educational Background:
MBA, Marketing - Symbiosis Institute of Digital and Telecom Management (2005 - 2007)
B.E., Electronics and Communication - Visvesvaraya Technological University (2001 - 2005)
Asmita's strong leadership, strategic vision, and passion for the beverage industry have been
instrumental in Zest's success. Her ability to build high-performing teams, drive innovation,
and execute effective growth strategies make her a valuable asset to the company.
Personal Information
Date of Birth: 23/07/1970
Language: Hindi, English

2. Yash Bhargava

A seasoned technology leader with extensive experience in driving innovation and

digital transformation in the beverage industry. Yash's expertise in leveraging cutting-
edge technologies has been instrumental in enhancing Zest's product offerings and
operational efficiency.
Professional Experience:
CTO, Zest Energy Drinks
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● Spearheaded the development and implementation of advanced technologies to

support the company's growth and innovation initiatives
● Led the implementation of a robust enterprise resource planning (ERP) system
to streamline operations and improve decision-making
● Developed and executed a data analytics strategy to gain valuable insights into
consumer preferences and market trends
● Collaborated with the R&D team to incorporate smart packaging solutions and
IoT-enabled supply chain management
Vice President, Technology, Refresh Beverages (2014 - 2018)
● Managed the technology roadmap and infrastructure for a portfolio of non-
alcoholic beverage brands
● Implemented cloud-based solutions to enhance scalability and flexibility
● Led the development of mobile applications and e-commerce platforms to
improve customer engagement and sales
● Mentored and developed a high-performing technology team to support the
company's growth objectives
Educational Background:
M.Tech, Computer Science - Indian Institute of Technology (IIT), Delhi (2008 - 2010)
B.Tech, Computer Science - Vellore Institute of Technology (VIT), Tamil Nadu (2004 -
2008)

3. Shristi Bajpai

A dynamic marketing leader with a proven track record of driving brand growth and
market share in the consumer-packaged goods (CPG) industry. Shristi's strategic
vision and data-driven approach have been instrumental in positioning Zest as a
leading brand in the non-alcoholic energy drink market.
Professional Experience:
CMO, Zest Energy Drinks (2019 - Present)
● Developed and executed a comprehensive marketing strategy to build brand
awareness, drive sales, and engage with target consumers
● Spearheaded the creation of a strong brand identity and positioning for Zest,
emphasizing its focus on organic and healthier options
● Implemented a data-driven approach to marketing, leveraging consumer
insights and market intelligence to optimize campaigns and measure
performance
● Forged strategic partnerships with influencers, athletes, and health-conscious
communities to amplify brand messaging and reach
Brand Manager, Hydrate Water (2015 - 2019)
● Managed the brand strategy and marketing activities for a leading bottled water
brand
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● Developed and executed successful marketing campaigns across various

channels, including digital, social media, and traditional media
● Collaborated with sales and distribution teams to ensure effective in-market
execution and drive sales growth
● Analyzed market trends and consumer insights to identify growth opportunities
and inform brand strategy
Educational Background:
MBA, Marketing - Symbiosis Institute of Digital and Telecom Management (2013 - 2015)
B.A., Economics - Lady Shri Ram College for Women, Delhi University (2009 - 2012)

4. Ayontika Banerjee

An experienced operations executive with a strong track record of driving operational

excellence and efficiency in the food and beverage industry. Ayontika's expertise in
supply chain management, quality control, and process optimization has been
instrumental in ensuring the smooth and efficient operation of Zest's production
facilities.

Professional Experience:
COO, Zest Energy Drinks (2020 - Present)
● Oversees all aspects of the company's operations, including production, supply
chain, quality assurance, and logistics
● Implemented lean manufacturing principles and Six Sigma methodologies to
optimize production processes and reduce waste
● Developed and executed a comprehensive quality control system to ensure
product safety, consistency, and compliance with industry standards
● Collaborated with the R&D team to design and implement efficient production
processes for new product formulations
Vice President, Operations, Refresh Beverages (2016 - 2020)
● Managed the operations of a multi-plant production network, ensuring
consistent product quality and on-time delivery
● Led the implementation of a supplier quality management system to improve
the reliability and sustainability of the supply chain
● Spearheaded the adoption of automation and robotics technologies to enhance
productivity and reduce labor costs
● Mentored and developed a high-performing operations team to support the
company's growth objectives
Educational Background:
MBA, Operations Management - Symbiosis Institute of Digital and Telecom Management
(2011 - 2013)
B.Tech, Chemical Engineering - Jadavpur University, Kolkata (2007 - 2011)
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5. Krishnaveni Konar

An accomplished information technology leader with a strong background in digital

transformation and enterprise-wide systems integration. Krishnaveni's expertise in
leveraging technology to drive business value has been instrumental in enhancing
Zest's operational efficiency and competitive advantage.
Professional Experience:
CIO, Zest Energy Drinks
● Developed and executed a comprehensive IT strategy to support the company's
growth and innovation objectives
● Led the implementation of a cloud-based enterprise resource planning (ERP)
system to streamline operations and improve decision-making
● Spearheaded the development of a robust data management and analytics
platform to generate valuable insights and support data-driven decision making
● Collaborated with the CTO to ensure seamless integration of technology
solutions across the organization
Educational Background:
M.Tech, Computer Science - Indian Institute of Technology (IIT), Madras (2011 - 2013)
B.Tech, Computer Science - National Institute of Technology (NIT), Rourkela (2007 -
2011)

6. Abhyudaya Bhalekar

A highly skilled financial strategist with extensive experience in managing corporate

finance and driving financial performance in the beverage industry. Abhyudaya's
expertise in financial planning, risk management, and strategic analysis has been vital
in positioning Zest for sustainable growth and profitability.

Professional Experience:
CFO, Zest Energy Drinks (2021 - Present)
● Oversee all financial operations, including budgeting, forecasting, and financial
reporting, to ensure the company meets its financial objectives.
● Develop and implement financial strategies that align with the company’s
growth plans, focusing on maximizing profitability and minimizing financial
risks.
● Manage relationships with investors, banks, and financial institutions to secure
funding and optimize capital structure.
● Lead the financial analysis of potential business opportunities, including new
product launches and market expansions.
Deputy Finance Manager, Pure Beverages (2018 - 2021)
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● Responsible for financial planning and management of projects, ensuring

alignment with corporate financial goals.
● Managed day-to-day financial operations, including expenditure tracking,
budget management, and financial reporting.
● Collaborated with cross-functional teams to support strategic initiatives and
improve financial performance.
Financial Analyst, Refresh Beverages (2015 - 2018)
● Conducted financial analysis and reporting to support decision-making at the
executive level.
● Developed financial models to evaluate business performance and identify
areas for improvement.
● Assisted in preparing annual budgets and long-term financial plans.

Educational Background:
MBA, Finance -Symbiosis Institute of Digital and Telecom Management (2013 - 2015)
B.Com, Accounting - University of Mumbai (2009 - 2012)

SWOT Analysis

Strengths:
● Growing Market: Energy drinks market is expanding significantly, providing ample
growth potential.
● Organic Appeal: Zest’s organic positioning meets rising consumer demand for healthier
options.
● Established Brand: PB’s reputation for organic products can lend credibility to Zest and
differentiate it from competitors.

Weaknesses:
● High Competition: Major players dominate 85% of the market, making entry
challenging.
● Price Sensitivity: Zest’s lower price may suggest a lower perceived value compared to
premium brands.
● Health Concerns: The negative media coverage around health risks associated with
energy drinks could affect consumer perception and demand.

Opportunities:
● Health Trends: Increasing demand for lower-caffeine, healthier energy drinks aligns
with Zest’s organic focus.
● Market Expansion: Significant projected market growth offers potential for long-term
success.
● Rising Demand: The forecasted market growth from $8.5 billion to $13.5 billion by 2028
suggests a large potential for expansion.
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Threats:
● Health Concerns: Rising health and safety concerns about energy drinks could reduce
overall market demand.
● Consumer Trends: A shift in consumer preferences away from energy drinks due to
health issues could impact sales.

Competitors

1. Red Bull (34% Market Share): Market leader with strong brand recognition.
2. Monster Beverage Corporation (27% Market Share): Major player with extensive
product range.
3. PepsiCo (16% Mar ket Share): Significant competitor with broad distribution.
4. Coca-Cola Company (8% Market Share): Large competitor with strong market
presence.
5. Others (15% Market Share): Includes independent and regional brands.

PESTEL Analysis
● Political:
Regulations on labeling and health claims affect market entry.
● Economic:
Market growth suggests favorable economic conditions for new entrants.
● Social:
Health-conscious trends boost demand for organic and lower-caffeine options.
● Technological:
Advances in production and marketing technology are crucial for competitive edge.
● Environmental:
Sustainability practices are increasingly important to consumers.
● Legal:
Compliance with FDA and advertising regulations is necessary to avoid legal issues.

Risks

● Market Risks: Major competitors in the highly competitive energy drink market, such as
Red Bull and Monster, enjoy large shares of the market. Its dominance makes it hard for
recent layers such as Zest to find a foothold in the market.
● Financial Risks: The high investment in advertisement at $750,000 is considered a
financial risk since there is no guarantee that the outcome of this investment will
materialize. Furthermore, there is uncertainty if the break-even point will be achieved,
particularly if the sales volume and profit margins are not as forecasted.
● Operational Risks: Sourcing and managing high-quality organic ingredients could be an
issue and would, therefore, impact production efficiency. Besides, there is a need to
ensure the quality of the products on a routine basis; flawed quality would shake the
reputation and consumer trust in Zest.
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● Technological Risks: Falling behind others because of lag in leveraging technological

advancement in production and marketing has to be averse to Zest. Also, the threats
regarding cyber security with digital marketing and e-commerce may raise major risks to
the smooth function of the brand and data of the consumers.

Value Proposition

PB’s Zest offer the following advantages to customers:

● Organic Ingredients: Zest is unique from the competitors in the energy drink market
due to the use of premium organic ingredients in its formula. This will directly appeal to a
segment of health-conscious consumers who are increasingly aiming for beverages
derived from natural, clean sources devoid of any synthetic additives or artificial
components. This organic approach to formulation not only increases the appeal of this
drink but aligns well with the modern consumer trend towards healthier lifestyle options.
● Brand Credibility: Zest inherits strong consumer trust in the brand by building on PB's
established reputation in high-quality organic products. This existing brand credibility
lessens some of the challenges for new market entrants. Since consumers can expect
reliable and well-regarded products from PB, they are bound to be more open to trying
Zest.
● Niche Appeal: Zest has been targeted at active and health-oriented consumers. The
formulation and strategies for the marketing of this product are based on people with
dynamic lifestyles in need of an energy boost that agrees with their objectives for health.
Such key groupings ensure that Zest captures the niche market segment that
appreciates performance and wellness, thus setting a proper base where its product
effectively resonates with those it targets.

Products & Services:

Zest Energy Drink Product Catalog

1. Zest Energy Drink - Citrus Burst

● Description: An invigorating blend of organic citrus flavors, including lemon, lime, and
grapefruit. Boosted with natural caffeine from green tea extract, it provides a clean
energy boost without synthetic additives.
● Key Ingredients: Green tea extract, organic lemon juice, organic lime juice, natural
sweeteners (stevia, monk fruit), vitamin B complex.
● Serving Size: 12 fl oz (355 ml)
● Calories: 10 per serving
● Packaging: Available in single cans, 4-packs, and 12-packs.
● Target Audience: Ideal for morning boosts, afternoon slumps, or pre-workout energy.
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2. Zest Energy Drink - Berry Bliss

● Description: A refreshing mix of organic berries (strawberry, blueberry, raspberry) with

a light and crisp taste. Powered by natural caffeine and antioxidants, it’s designed for a
flavorful energy uplift.
● Key Ingredients: Organic berry juice blend, green coffee bean extract, stevia, vitamin C,
and B vitamins.
● Serving Size: 12 fl oz (355 ml)
● Calories: 15 per serving
● Packaging: Available in single cans, 4-packs, and 12-packs.
● Target Audience: Health enthusiasts looking for an antioxidant-rich energy option.

3. Zest Energy Drink - Tropical Fusion

● Description: A vibrant fusion of pineapple, mango, and passionfruit for a taste of the
tropics. Contains natural caffeine and electrolytes to keep you refreshed and energized
throughout the day.
● Key Ingredients: Organic pineapple juice, organic mango puree, passionfruit extract,
guarana extract, sea salt.
● Serving Size: 12 fl oz (355 ml)
● Calories: 20 per serving
● Packaging: Available in single cans, 4-packs, and 12-packs.
● Target Audience: Active individuals and those seeking a refreshing, exotic flavor profile.

4. Zest Energy Drink - Green Apple Ginger

● Description: A crisp and slightly spicy blend of organic green apple and ginger. This
unique flavor combines natural caffeine and anti-inflammatory properties for a functional
boost.
● Key Ingredients: Organic green apple juice, ginger extract, ginseng, stevia, B vitamins.
● Serving Size: 12 fl oz (355 ml)
● Calories: 10 per serving
● Packaging: Available in single cans, 4-packs, and 12-packs.
● Target Audience: Perfect for a revitalizing pick-me-up with a tangy twist.

Zest Low-Calorie Sports Drinks Product Catalog

1. Zest Sports Drink - Lemon Lime Electrolyte

● Description: A classic lemon-lime blend crafted to replenish electrolytes lost during

exercise. With low sugar content and organic ingredients, it’s the ideal hydration
companion.
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● Key Ingredients: Organic lemon juice, organic lime juice, coconut water concentrate,
sea salt, potassium, stevia.
● Serving Size: 16 fl oz (473 ml)
● Calories: 15 per serving
● Packaging: Available in single bottles, 6-packs, and 12-packs.
● Target Audience: Athletes, gym-goers, and outdoor enthusiasts.

2. Zest Sports Drink - Berry Electrolyte Boost

● Description: A blend of organic berry extracts and natural electrolytes to keep you
hydrated and energized. It’s a delicious, low-calorie option for post-workout recovery.
● Key Ingredients: Organic strawberry extract, organic blueberry juice, sea salt,
magnesium, calcium, stevia.
● Serving Size: 16 fl oz (473 ml)
● Calories: 20 per serving
● Packaging: Available in single bottles, 6-packs, and 12-packs.
● Target Audience: Individuals seeking hydration with a fruity twist.

3. Zest Sports Drink - Tropical Hydration

● Description: A tropical mix of coconut, pineapple, and mango, packed with electrolytes
for optimal hydration. Low in sugar, it offers a refreshing taste without compromising on
health benefits.
● Key Ingredients: Organic coconut water, organic pineapple juice, sea salt, potassium,
vitamin C.
● Serving Size: 16 fl oz (473 ml)
● Calories: 25 per serving
● Packaging: Available in single bottles, 6-packs, and 12-packs.
● Target Audience: Ideal for those in need of a flavorful and hydrating drink after intense
physical activity.

4. Zest Sports Drink - Cucumber Mint Refresh

● Description: A cool and calming cucumber mint flavor, designed to hydrate and refresh.
With organic ingredients and added electrolytes, it’s perfect for a rejuvenating drink on
the go.
● Key Ingredients: Organic cucumber juice, mint extract, sea salt, calcium, stevia.
● Serving Size: 16 fl oz (473 ml)
● Calories: 10 per serving
● Packaging: Available in single bottles, 6-packs, and 12-packs.
● Target Audience: Great for light hydration needs, yoga practitioners, and wellness
enthusiasts.
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These catalogs provide a comprehensive view of PB’s Zest Energy and Sports Drinks,
emphasizing organic, low-calorie options that appeal to a health-conscious audience while
providing the necessary functional benefits.

Market Analysis Summary:

India stands out as the largest global producer of banana, mango, lime, lemon, papaya, milk, and
sugar, which are key raw materials for the non-alcoholic beverages. The food and beverage
industry in India is one of the fastest-growing sectors, fueled by a robust raw material production
base. The domestic non-alcoholic beverage market is poised to reach a size of US$ 21.5 billion
by 2028, growing at a CAGR of 6.72% over the next 4 years.
Market Drivers - This growth is driven by several factors, including the increasing affluence of
the expanding working population, a rise in disposable income, growing urbanization leading to
shifting lifestyles and time constraints for home-cooked meals, a surge in tourism and international
travel, and a heightened consumption of rapidly growing food and beverage segments during
special occasions and celebrations.

Energy drinks continue to be the best-selling supplements among both teenagers and young
adults in the US. However, on a larger scale, energy drinks were primarily consumed by males
aged 18 to 34 years. This growth is mainly due to growing awareness and an increase in the trend
for sports activities among younger people. Recently, players operating in the US have shifted
consumer targets from athletes to youth due to rising demands made by young consumers for
mental alertness.

Market Restrainers -

Regulatory Complexity and Compliance Issues

One of the significant challenges in the Indian non-alcoholic beverages market is navigating the
complex regulatory environment. Regulations governing food safety, labeling requirements, and
advertising standards can vary across states and are subject to frequent updates. This creates
compliance challenges for manufacturers, especially smaller and regional players, who may
struggle with the costs and administrative burden of meeting regulatory standards. Additionally,
evolving regulations related to sugar content, nutritional labeling, and environmental sustainability
(such as plastic usage in packaging) require continuous adaptation from beverage companies.
Meeting these regulatory requirements while maintaining product innovation and profitability
poses a significant challenge for the industry.

Price Sensitivity and Affordability Issues

Price sensitivity among Indian consumers remains a critical challenge for the non-alcoholic
beverages market. While urban consumers may be willing to pay premium prices for healthier or
trendy beverages, price remains a barrier for many middle-class and rural consumers. The cost
of raw materials, production, packaging, and distribution can also impact pricing strategies.
Fluctuations in input costs, such as sugar, fruit concentrates, and packaging materials, can
squeeze profit margins, especially for companies offering value-priced products. Competing with
cheaper alternatives, such as homemade beverages or locally made traditional drinks, further
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complicates pricing strategies and market penetration efforts. Balancing affordability with product
quality and health benefits remains a constant challenge for beverage manufacturers targeting
diverse consumer segments across India.

Distribution and Infrastructure Challenges

India's vast geographical diversity and infrastructural limitations present significant distribution
challenges for non-alcoholic beverage companies. While urban areas benefit from well-
established distribution networks through supermarkets, hypermarkets, and convenience stores,
rural and remote regions often face logistical hurdles.

Market Trends - The claims that most influence consumers when purchasing sports and
functional nutrition products are high protein claims (26%) and low, no or reduced sugar claims
(24%). US consumers stand out compared to the global average, with 46% of US consumers
saying they are influenced by attributes such as taste and flavor when purchasing sports and
functional nutrition, compared to the global average of 40%. Innova’s consumer data also shows
that consumers are looking for fruit and superfruit flavors (27%) as well as sweet flavors (24%) in
sports drinks, and also indicates that the main flavor direction they choose when purchasing
sports drinks is familiar (24%) and healthy flavors (14%).

Market Segmentation:

Segmentation Parameter Market Value (USD Million) Percentage Contribution

Total Market Size 80.1 100%

By Product Type

Sports Drinks 32.04 40%

Energy Drinks 47.96 60%

By Packaging Type

Cans 12 21%

Glass Bottles 16 20%

PET bottles 40 48%

Others (Tetra Packs) 12 21%

By Distribution Channel

Retail Stores 28.0 34.9%

Convenience Stores 12.1 21.2%

Supermarkets 16 19.9%
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Online Retail 24.0 29.9%

By Geography

South 32.04 40%

North 20.02 25%

East 12.01 15%

West 16 20%

Service Business Analysis

Prime Beverages - Non-Alcoholic Beverage

This category covers establishments primarily engaged in the production and distribution of non-
alcoholic beverages, with a focus on energy drinks, low-calorie sports drinks, and other
functional beverages. Prime Beverages (PB) specifically targets the growing market demand for
organic and healthier drink options, differentiating itself through the use of high-quality, natural
ingredients and sustainable production practices. The company's operations encompass the
sourcing of organic raw materials, beverage formulation, production, packaging, and distribution
through both on-premise and off-premise channels, including retail stores, gyms, and health-
focused outlets. Prime Beverages' strategic approach includes leveraging its established brand
reputation to introduce new products, such as "Zest," which is positioned to meet the evolving
preferences of health-conscious consumers.

Industry Snapshot

In 2022, U.S. consumers spent an estimated $86.65 billion on energy drinks and non-alcoholic
functional beverages, including organic and low-calorie sports drinks. That year, approximately
150,000 individuals were employed in the industry as manufacturers, distributors, marketing
professionals, quality control specialists, and research & development staff. Since 2020, there
has been a notable shift towards healthier beverage options, with a growing emphasis on
organic ingredients and lower caffeine content. By 2023, three out of every five new beverage
products in the market were classified as organic or natural, reflecting the increasing demand
for healthier alternatives. The overall U.S. non-alcoholic beverage market included around 50
major brands in 2022, with leading companies like Red Bull, Monster Beverage Corporation,
PepsiCo, and Coca-Cola holding a combined market share of 85%. The remainder of the
market consisted of independent and regional brands focusing on niche products, such as
organic, functional, and low-calorie beverages. As of 2023, the market is projected to grow to
$177.58 billion by 2031, driven by rising consumer interest in health and wellness trends.
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Organization and Structure

Prime Beverages (PB) follows a structured organizational pattern common among mid-sized
beverage companies. The business is overseen by company managers, including the CEO and
senior executives who are responsible for strategic planning, financial oversight, and overall
company direction. Product development teams, comprising food scientists and nutrition
experts, work on formulating new drinks and refining existing products to meet consumer
preferences and health standards. The marketing department focuses on brand positioning,
advertising campaigns, and market penetration strategies, especially for new products like Zest.

The supply chain and distribution team manages relationships with suppliers of organic
ingredients and coordinates the logistics of product manufacturing and delivery to retailers and
distributors. This team ensures that high-quality standards are consistently met and that the
products are available in targeted markets, starting with key western states during the soft
launch phase.

Sales representatives play a crucial role in building and maintaining relationships with
distributors and retailers. Their efforts are crucial to PB’s strategy of penetrating competitive
markets by ensuring product visibility and availability on store shelves. In addition, a dedicated
customer service team addresses consumer inquiries and feedback, reinforcing PB’s
commitment to maintaining a positive customer experience.

Regulation of the beverage industry in the United States involves compliance with FDA
standards, particularly concerning labeling, health claims, and advertising practices. PB’s
regulatory affairs team ensures that all products meet legal requirements, including organic
certification and claims related to health benefits. As the company expands into new markets,
staying compliant with both state and federal regulations remains a top priority.

Current Conditions

As of 2024, the U.S. non-alcoholic beverage market, particularly the energy and sports drinks
segment, is experiencing rapid growth driven by rising consumer demand for healthier and
organic options. The market has seen a significant shift towards beverages with natural
ingredients, low sugar content, and functional benefits such as added vitamins and electrolytes.
The U.S. market is projected to grow to $177.58 billion by 2031, with organic and health-
focused beverages capturing an increasing share.

Prime Beverages (PB) is entering this competitive landscape with its new product line, “Zest,”
targeting the functional and organic beverage market. The market is dominated by major
players such as Red Bull and Monster, which collectively hold over 60% of the market share,
making entry challenging for new products. However, the demand for organic, low-caffeine, and
clean-label drinks offers a significant opportunity for new entrants like PB.

Most beverage companies in the market are well-established brands with extensive distribution
networks and marketing budgets, allowing them to maintain strong market positions. Smaller
and mid-sized companies, like PB, often focus on niche markets, such as organic or specialty
drinks, to differentiate themselves from larger competitors. PB’s strategy of launching “Zest” in
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key western states (California, Oregon, and Washington) aligns with current market conditions,
allowing the company to test market reception in health-conscious regions before expanding
nationally.

The industry is also influenced by evolving regulatory standards, particularly regarding health
claims and labeling, which affect how products are marketed. Compliance with these regulations
is critical, and companies must navigate complex legal landscapes to avoid penalties. PB’s
commitment to organic ingredients and sustainable practices aligns with consumer preferences
and regulatory requirements, positioning it favorably in a highly competitive market.

Research and Technology

Although the non-alcoholic beverage industry is not traditionally viewed as highly reliant on
technology, several innovations are reshaping how companies operate and compete. Advanced
production technologies, such as high-pressure processing (HPP), are increasingly used to
preserve the nutritional content of organic ingredients without the need for synthetic
preservatives. This allows companies like Prime Beverages (PB) to maintain the quality and
freshness of their products, catering to health-conscious consumers who prefer natural and
minimally processed beverages.

In marketing, the adoption of digital platforms and data analytics has transformed the way
beverage companies engage with consumers. PB utilizes targeted digital marketing strategies,
leveraging social media, influencer partnerships, and data-driven insights to reach its audience
more effectively. These methods allow PB to create personalized marketing campaigns that
resonate with its target market of health-oriented, active consumers, providing a competitive
edge over traditional advertising channels.

The integration of e-commerce and direct-to-consumer sales models has also become a
significant trend, offering companies a way to bypass traditional retail channels and directly
connect with their customers. PB's planned expansion into e-commerce will enable it to gather
real-time feedback on new products, such as its “Zest” line, allowing for quick adjustments
based on consumer preferences.

Technological advancements in sustainable packaging are also crucial for PB, as

environmentally conscious consumers increasingly demand eco-friendly products. PB’s focus
on using recyclable and biodegradable materials aligns with this trend, helping to enhance its
brand image and appeal in the crowded beverage market.

Cybersecurity remains a concern for companies engaging in digital marketing and e-commerce,
as the risks associated with data breaches can impact customer trust and brand reputation. PB
continuously invests in cybersecurity measures to protect consumer data, ensuring a secure
and smooth purchasing experience.

Industry Leaders

Due to the highly competitive nature of the non-alcoholic beverage market, a few major players
dominate the industry, particularly in the energy drink and sports drink segments. These
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companies have established extensive distribution networks and strong brand recognition,
making them formidable competitors to new entrants like Prime Beverages (PB). Figure 1
shows the leading companies in the U.S. energy drink market and their respective market
shares.

Figure: Breakdown of Market Share in the U.S. Energy Drink Market

Company Market Share

Red Bull 34%

Monster Beverage Corporation 27%

PepsiCo 16%

Coca-Cola Company 8%

Others 15%

Total 100%

The dominance of these leading companies is driven by their strong brand loyalty, extensive
marketing budgets, and established distribution channels. Red Bull and Monster lead the market
with substantial shares, leveraging their wide product ranges and aggressive marketing tactics
targeting young and active consumers.

Growth in Organic and Health-Focused Beverage Market

The organic beverage segment, which includes brands like Zest, is rapidly growing as
consumers seek healthier alternatives. While the leading companies primarily dominate the
traditional energy drink market, there is increasing space for niche brands focusing on organic,
low-calorie, and functional beverages.

Figure: Growth in Organic Beverage Market Segment (USD Million)

Year 2020 2021 2022 2023 2024

(Projected)

Value 250 320 420 560 700

The projected growth in the organic beverage market presents an opportunity for PB to capture
market share by differentiating its offerings from mainstream competitors through its
commitment to quality organic ingredients and affordable pricing.
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Competition and Buying Patterns

Competitive threats come from major players in the energy drink and sports drink market. These
competitors are well-established with significant market shares and extensive distribution
networks.

Key Competitors:

● Red Bull: A leading brand with a dominant market share of 34%. Red Bull's strength lies
in its strong brand recognition and extensive distribution network. The company has
been successful in creating a premium image and maintaining customer loyalty. Their
products are well-established in both on-premise and off-premise distribution channels,
making them a formidable competitor.
● Monster Beverage Corporation: Holding 27% of the market share, Monster Beverage
offers a wide range of energy drinks. Their extensive product range and aggressive
marketing strategies make them a significant competitor. Monster’s strength lies in its
broad market appeal and high visibility in various retail outlets.
● PepsiCo: With a 16% market share, PepsiCo is a major player in the energy drink
sector. Their vast distribution network and strong market presence provide them with a
competitive edge. PepsiCo’s ability to leverage its existing beverage infrastructure allows
it to offer competitive pricing and wide availability.
● Coca-Cola Company: Accounting for 8% of the market share, Coca-Cola is a well-
established brand with a robust distribution system. Their competitive advantage lies in
their strong brand equity and extensive market reach.

Prime Beverages' Competitive Advantage:

Prime Beverages' “Zest” aims to differentiate itself through its commitment to organic
ingredients and affordability. While established competitors dominate the market, “Zest”
leverages the growing consumer demand for healthier and organic beverage options.

Buying Patterns:

● Health-Conscious Consumers: There is an increasing trend among consumers

seeking beverages with natural and organic ingredients. This segment values
transparency in ingredient sourcing and prefers drinks free from synthetic additives.
● Flavor Preferences: Consumers are drawn to unique and refreshing flavors. “Zest”
offers diverse options, including Citrus Burst, Berry Bliss, Tropical Fusion, and Green
Apple Ginger, catering to various taste preferences and health-conscious choices.
● Packaging and Convenience: The market shows a strong preference for convenient
packaging. “Zest” offers products in single cans, multi-packs, and bottles, aligning with
consumer expectations for portability and easy access.
● Price Sensitivity: There is a growing trend toward affordability without compromising
quality. “Zest” aims to strike a balance between premium quality and cost-effectiveness,
appealing to price-sensitive consumers while maintaining strong margins.

Maintenance and Operational Challenges:

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● Ingredient Sourcing: Securing high-quality organic ingredients consistently is crucial.

Competitors with established supply chains may have an advantage in managing costs
and maintaining product quality.
● Technological Advancements: Staying ahead in production technology and digital
marketing is essential. Ensuring up-to-date technological capabilities will help “Zest”
compete effectively with established players.

Prime Beverages' Strategic Position:

Prime Beverages' strengths include its focus on organic ingredients and a competitive pricing
strategy. The company’s innovative approach and alignment with health trends provide a unique
value proposition in a crowded market.

Marketing Strategy

Prime Beverages markets its “Zest” energy and sports drinks as premium organic solutions
tailored to health-conscious and active consumers. The company aims to position “Zest” as a
high-quality, affordable choice in the functional beverage market. The target markets include
health-conscious individuals, athletes, and those seeking a refreshing, organic alternative to
traditional energy drinks.

Target Markets:

1. Health-Conscious Consumers: Individuals who prioritize natural and organic

ingredients in their diet.
2. Athletes and Fitness Enthusiasts: Consumers seeking beverages that enhance
performance and recovery.
3. Active Lifestyle Participants: Those looking for convenient, healthy hydration options
for daily activities.

Marketing Channels:

● Digital Advertising:
○ Social Media Campaigns: Engaging content on platforms like Instagram,
Facebook, and TikTok to reach health-conscious and active consumers.
Targeted ads will highlight the organic ingredients and unique flavors of “Zest.”
○ Influencer Partnerships: Collaborations with fitness influencers and health
bloggers to promote “Zest” through authentic endorsements and reviews.
● Retail Promotions:
○ In-Store Displays: Eye-catching displays and sampling stations in major retail
chains across key western states (California, Oregon, and Washington) to drive
trial and increase visibility.
○ Promotional Discounts: Special offers and discounts for first-time buyers and
bulk purchases to encourage trials and repeat purchases.
● Experiential Marketing:
○ Fitness Events and Expos: Sponsorship of and participation in fitness and
health expos to showcase “Zest” directly to the target audience. This includes
product sampling and interactive booths.
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○ Community Engagement: Hosting local wellness events and fitness classes

with “Zest” as the official beverage sponsor to build brand awareness and
connect with the community.
● Content Marketing:
○ Educational Content: Producing blog posts, videos, and infographics about the
benefits of organic ingredients, the importance of hydration, and the unique
features of “Zest.”
○ Customer Testimonials: Sharing stories and reviews from satisfied customers
to build credibility and trust.

Monitoring and Tracking:

Prime Beverages will track the effectiveness of its marketing efforts through:

● Sales Data Analysis: Monitoring sales performance in targeted regions and adjusting
strategies based on real-time data.
● Digital Analytics: Using tools like Google Analytics and social media insights to
measure engagement and campaign success.
● Customer Feedback: Gathering feedback through surveys and reviews to understand
consumer preferences and improve marketing tactics.

Marketing Package:

Proposed Advertising Plan:

● Social Media Campaigns: Targeted ads on Instagram, Facebook, and TikTok

showcasing “Zest’s” organic ingredients and unique flavors.
● Influencer Partnerships: Collaborations with top fitness influencers and health bloggers
for product endorsements and reviews.
● Retail Promotions: In-store displays and promotional discounts in major retail chains.
● Experiential Marketing: Sponsorship and participation in fitness events and expos in
key regions.

Strategic Alliances

Prime Beverages has established strategic alliances with key industry partners to support the
launch and growth of “Zest” in the competitive beverage market. These partnerships provide
valuable resources and expertise, ensuring that Prime Beverages remains competitive and
innovative. The details of the strategic relationships are outlined below:

1. Natural Products Association (NPA):

● Role: NPA represents the natural products industry and provides valuable insights into
industry trends and regulations.
● Benefits: Prime Beverages will leverage NPA's resources to stay informed about the
latest industry developments and regulatory changes. This partnership also provides
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access to industry research and networking opportunities, helping to ensure compliance

and enhance market positioning.

2. Organic Trade Association (OTA):

● Role: OTA focuses on promoting and protecting organic trade and offers resources
related to organic certification and best practices.
● Benefits: OTA will assist Prime Beverages in maintaining its organic certification and
ensuring that “Zest” meets the highest organic standards. OTA membership provides
access to educational materials and industry updates, supporting continuous
improvement and credibility in the organic market.

3. Flavor & Extract Manufacturers Association (FEMA):

● Role: FEMA is a key resource for flavor industry trends and technological
advancements.
● Benefits: Prime Beverages will collaborate with FEMA to access the latest flavor
innovations and ensure that “Zest” offers unique and appealing taste profiles. This
partnership also provides insights into flavor trends and consumer preferences, aiding
product development.

4. Distribution Partners:

● Key Partners: Local distributors in California, Oregon, and Washington.

● Role: These distributors will handle the logistics and supply chain management for the
initial launch of “Zest” in the targeted regions.
● Benefits: Strategic relationships with these distributors ensure efficient market
penetration and product availability. The distributors have extensive networks and
experience in handling beverage products, which will facilitate a smooth launch and
ongoing distribution.

5. Marketing and Advertising Agencies:

● Key Partners: Digital marketing firms specializing in health and wellness products.
● Role: These agencies will manage online advertising, social media campaigns, and
influencer partnerships.
● Benefits: The agencies bring expertise in reaching health-conscious consumers and
creating compelling marketing content. This partnership will enhance brand visibility and
drive consumer engagement through targeted marketing efforts.

6. Research and Development (R&D) Partners:

● Key Partners: R&D firms specializing in beverage innovation and health-focused

product development.
● Role: These partners will assist in developing new flavors and improving product
formulations.
● Benefits: Collaborating with R&D firms ensures that “Zest” remains at the forefront of
beverage innovation. This partnership supports continuous product improvement and
helps in responding to changing consumer preferences.

7. Sustainability Consultants:
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● Key Partners: Consultants specializing in sustainable practices and environmental

impact reduction.
● Role: These consultants will guide Prime Beverages in implementing eco-friendly
practices and reducing the carbon footprint of production.
● Benefits: The partnership with sustainability consultants will help Prime Beverages meet
consumer expectations for environmental responsibility and enhance the overall brand
image.

8. Retail Chains:

● Key Partners: Major retail chains in the western states.

● Role: These chains will feature “Zest” in their stores and provide prominent shelf space.
● Benefits: Securing shelf space in well-known retail outlets ensures high visibility and
accessibility for consumers. The retail chains' extensive reach will support the successful
launch and growth of “Zest” in the targeted regions.

Financial Statements:

Projected P&L Statement:

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Projected Balance Sheet:

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Business Modal Canvas: