Professional Documents
Culture Documents
Abbasi F. Tinwala
Roll No.50,
Term 4, SKIPS
1 BUSINESS PLAN
Sr.No Contents Topics Covered
2 BUSINESS PLAN
Index Page
3 BUSINESS PLAN
Establish The Degree Of
Purity
Stages Of Production
Process
7 Strategy Operational plan
Place
Main Suppliers
Marketing Distribution
Channel
Price
Discounts, Allowances
Offered
Promotion
8
Financial Plan Pro Forma Income
Statement
Pro Forma Balance Sheet
First year
Pro Forma Cash Flow first
year
Break even Analysis
Pro Forma Sources and
applications of fund
1. COMPANY DESCRIPTION
The SMART Beverages is a new firm going to start its operation in Gujarat. It
will start with an energy drink product with the name “Smart Energy Drink”.
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The SMART Beverages will be a partnership firm. The names of partners are
given below. The firm is going to start its operations in a limited geographical
level. The company’s growth policy is to fulfil the customers need with quality
product to grow.
Co-owners:
Abbasi F Tinwala
Puneet Daga
Harshit Shah
Description of Business:
This business provides unique energy drink with mix fruits flavor without any
harmful chemical. We provide healthy mix fruit energy drink with high quality
and affordable price.
Financing:
Initial financing will be of 1,00,00,000. This finance will cover office exp,
marketing exp, plant and office rent.
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2. Executive Summary
Mission:-
“Our mission is to serve people by providing quality energy drink”
Vision:-
Our vision is to capture gujrat market by providing quality energy drink at low
price in order to keep people healty and fit.
Objectives:-
Keys to Success:-
The keys to success are designing and producing such type of products that
meet market demand. In addition, our Company must ensure total customer
satisfaction. If these keys to success are achieved, it will become a profitable,
sustainable company specifically which will produce long lasting results as
well.
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Company Highlights:
The firm is going to start the operation to fulfil the need of the market segment
that still has not been fulfilling properly. The market segment which is known
as the energy drink is our focus. The people today have too much busy life.
Their tight work routine absorbs all the energy from their body and soul. In this
situation they need something that fulfil their energy need and make them fresh
instantly.
There are some products already exist in the market to take advantage of that
segment of market. But the fact is that the competition is not so stiff in this
segment. Another fact is that the products which already exist in the market
have a high rate.
The fundamentals of our business will be “to fulfil the need of the people to
remain energetic with our world class product at an affordable price”. We take
our customer as our first priority while taking any decision.
Our target market of our mix fruit Energy drinks are mainly targeted towards
those who need some sort of energy boost. Now everyone is facing the super-
charged, over-worked lifestyle, but young people are especially vulnerable to
persistent exhaustion and insufficient energy. We will specially make our
marketing efforts around Teenagers, Adults, and also Late 50’s.
The owners are the firm is the partners in the firm who don’t have any intention
to go in the public. The names and share of the partners are mention in the
operational plan of the. The capital can be raise from the banks as well if
necessary at any time.
The industry has a very bright future as everyone expecting from the trends
prevailing in the market. The energy drinks demand is rising as compared to the
other drinks available in the market. The people are coming more and more
towards the energy drinks not only to get their selves fresh but also regain the
energy of the body which they loss during the everyday chores of work. As the
share of industry is rising as the time passes on so to launch a business in such
an environment where on one side the industry share of total market is
increasing and on other side not much competitors are available in that segment
looks like a very vice decision.
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The one weakness which we have is that we are new entrants in the industry as
well as well we do not have the as much financial resources as the other
competitors have. But the positive point is that we can still successfully
compete with competitors due to our strategy. The one weakness that we have
few financial resources is overcome by our strategy to start with a small
geographical region “Gujarat”. The advantage which we have over the
competitors is that all the partners belong to the same geographical region so
they are well familiar with the target population of the area. No matter that
financial resources are few but the extensive marketing strategy can be launched
because of the small geographical area. The close knitted connections of the
partners in area and quality product at affordable price can win a leaders place
in that area for our product.
To fulfil this need and want of people we are launching our product with the
name “Power Trip” in the market. As we want to see the response of the public
towards our product before launch it on a vast level, so we are launching it in
the regional area of Gujarat in initial stages.
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3. Product
Product Description:-
Our product is fresh energy drink for those people who need some sort of
energy boost. But young people are especially vulnerable to persistent
exhaustion and insufficient energy.
This energy drink will keep them fresh and will give energy to their body. This
energy drink will have unique freshness, high energetic calories and low price
as compare to the existing energetic drinks available in market.
Smart Energy Drink contains Carbonated water, high fructose syrup and/or
sugar, Citric Acid, orange and apple juice from concentrate, natural flavours,
Sodium Benzoate, Sodium Polyphosphates, Caffeine, Erythrism Acid, Maurine,
Calcium Imodium Etta (to product flavour), Potassium Benzoate, Brominates
Vegetable oil.
Nutrition Facts
Serving size: 1 can (8.4oz); calories 120; total fat 0g;
saturated fat 0g; cholesterol 0mg; sodium 75mg;
total crab. 32g; dietary fiber 0g; sugars 30g;
protein 0g; riboflavin 20%; vitaminB610%;
vitamin B12 10%; Fruit pulps 30%
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Packaging:
Designing and Packaging of many energy drink companies are more exclusive
in their marketing efforts because they gear their products and advertising to a
very specialized group. These groups include gamers, extreme sports
enthusiasts. You can see the effects of this emphasis on such a target market
because it is seen in the advertising campaigns of energy drinks.
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4. Market Analysis
Market Research:-
Among college energy drink users, consuming energy drinks is particularly
popular for insufficient sleep, when one needs more energy in general, to drink
with alcohol while partying, and when studying for an exam or completing a
major course project. Drinking three or more for a given situation occurs more
frequently among those who consume energy drinks for three or more of the six
situations that were assessed. Side effects of consuming energy drinks and
headaches occur in many energy drink users.
Target Market:-
Teenagers
Adults
Sports persons
Also Late 50’s
Target Market of our mix fruit Energy drinks are mainly targeted towards those
who need some sort of energy boost. Now everyone is susceptible to the fatigue
of the super-charged, over-worked lifestyle, but young people are especially
vulnerable to persistent exhaustion and insufficient energy.
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Competition:-
Company is forming its own market with the unique concept of providing
energy drink with fruit flavour and original vitamins without the effect of any
harmful chemical.
There are several other competitors who are providing energy drinks but we are
specially focusing on healthy energy drink with original fruit contents with low
caffeine margin.
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5. Management Team
Hierarchal Structure:-
The hierarchal structure of the Power Trip Company is as follow:
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The Organizational Chart:
Board of
Directors
CEO
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6. Plan Summary
Size of operation:-
We are conducting our operations in Gujarat city. First, We will be launching
our energy drink in Gujarat and later on in other cities also. This will be
available in all beverages store, super markets and in shops.
Office equipment:-
We have purchased well office equipment e.g. Store Cup-Boards, chairs, tables
drink stands and other necessary equipment tools.
Many of our products are already in market which are very successful e.g. soft
drink, herbal oil, herbal shampoo many others.
Now we think that we should provide an energy drink to people who keep them
healthy and retain them fit and fresh.
Production Plan:
Ingredients
4. Alkalinisation
Next, a solution of caustic soda or sodium hydroxide (NaOH) is added to the
obtained extract in order to precipitate alkaloids.
5. Filtration
At this stage, the alkalized extract is passed through a filter in order to
remove any suspended solid particles.
6. Acidification
After that, the former alkaline extract is acidified. Finally, the obtained ERG
- A20 Extract is bottled and stored.
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7. Strategy
Operational plan:-
Operational plan of the product includes inventory, shipping, storage,
inventory control procedures, and customer services.
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Place
In the Initial stage we would like to focus into the big cities of Gujarat like
Ahmadabad, Surat, Baroda,etc. SMART Beverages will also like to focus on the
big and high growth market shared states of India like Mumbai, Kolkata, and
Chennai .Smart Energy Drink is also focusing on small cities so that their
product will be available even in the small shop of rural area.
Main Suppliers
Different suppliers in beverage sector in Gujarat and also we would like to take
the help of some Agents also.
Super markets
Departmental store
Convenience store
Price
Pricing wise, we will use the motto "Classy but not expensive". As a result, we
offer a high quality and fashionable product at a lower price. It allows us to
position ourselves as one of the best quality/price balanced brands.
This provides our partners an opportunity to sell a high quality product, while
increasing their margins and offering higher profits to their re-sellers.
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Purchase price of retailer of 1 can is Rs.30
Promotion:
We will promote our product by using different communication channel.
Communication Channels
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8. Financial Plan:
Projected financial statement of company listed below:
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Pro Forma Cash Flow first year ( 000s)
Net income 600
Add: deprecation 70
Increase in inventory (300)
increase in debtors (120)
Increase in creditors 100
Net Cash flow from operating activities 350
Payment to fixed assets (700)
(350)
Balance 1000
Net cash flow 650
7000
6000
5000
Fixed Cost
4000
Sales
Total Cost
3000
2000
1000
0
0 50000 100000 150000 200000 250000
The horizontal axis showing the no of unit sold and the vertical axis showing for
sales revenue and costs. The sales line starts at the origin ends at the point
satisfying expected sales.
The fixed cost line runs parallel to the horizontal axis meets the vertical axis at a
point which represents a total fixed cost.
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The total cost line starts where the fixed cost line meets the vertical axis ends at
the point which represents anticipated sales on the horizontal axis and total cost
of the anticipated sales at the vertical axis.
3800000 / 30 – 10 = 190000
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