smart energy drink

8/8/2019 Smart Energy Drink

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Sr.No Contents Topics Covered

1 Company Description y Co-ownersy Description of Businessy Financing

2 Executive Summar y Missiony Slogany

Visiony Objectivesy Keys to Successy Company Highlights

3 Product y Product Descriptiony Packaging

4 Market Analysis y Market Researchy Target Markety Competition

5 Management Team yName of Partners-Contribution

y HierarchalStructurey The Organizational Chart

Index Page


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6 Plan Summary-

Strategyy Size of operationy Office equipmenty Background Of The

Entrepreneur

y Production Plany Methods Used To

Establish The Degree Of

Purity

y Stages OfProductionProcess

7 Strategy y Operational plany Placey Main Suppliersy Marketing Distribution

Channel

y Pricey Discounts, Allowances

Offered

y Promotion8Financial Plan y Pro Forma Income

Statement

y Pro Forma Balance SheetFirst year

y Pro Forma Cash Flow firstyeary Break even Analysisy Pro Forma Sources and

applications of fund


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1. COMPANY DESCRIPTIONThe 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.

The SMART Beverages willbe a partnership firm. The names of partners are

given below. The firm is going to start its operations in a limited geographical

level. The companys growth policy is to fulfil the customers need with quality

product to grow.

Co-owners:

y Abbasi FTinwalay Puneet Dagay 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 willbe of 1,00,00,000. This finance will cover office exp,

marketing exp, plant and office rent.

This report is confidential and is the property of co-owners listed above. It is

intended for use only by the persons to whom it is transmitted, and any

reproduction or divulgence of any of its consent is prohibited.


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2. Executive Summary

yMission:-Our mission is to serve people by providing quality energy drink

y Slogan:- For Smart Peopley Vision:-

Our vision is to capture gujrat market by providing quality energy drink at low

price in order to keep people healty and fit.

y Objectives:- Maintain positive, strong growth each year not withstanding seasonal

sales patterns.

Achieve a comprehensive output in market penetration. Decrease customer dissatisfaction simultaneously. A double to triple digit growth for the first five years Increase the profit margin by adequate percentage each quarter through

efficiency and economy of scale.

Maintain a significant research and development and advertisementbudget to enhance future product developments.

y 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 willbecome a profitable,

sustainable company specifically which will produce long lasting results as

well.


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y 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 theirbody 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 ourbusiness willbe 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 especia lly vulnerable to

persistent exhaustion and insufficient energy. We will specially make our

marketing efforts around Teenagers, Adults, and also Late 50s.

The owners are the firm is the partners in the firm who dont 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 theenergy 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 tota l market is

increasing and on other side not much competitors are available in tha t 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 havefew 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. T he 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 PowerTrip 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. Pr duc y Product escri tion:-

Our product i 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.

his energy drink will keep them fresh and will give energy to their body. his

energy drink will have uni ue 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 olyphosphates, Caffeine, Erythrism Acid, Maurine,

Calcium Imodium Etta (to product flavour), otassium 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 fi ber 0g; sugars 30g;

protein 0g; riboflavin 20%; vitaminB610%;

vitamin B12 10%; Fruit pulps 30%


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y Packaging:Designing and ackaging of many energy drink companies are more exclusive

in their marketing efforts because they geartheir products and advertising to a

very specialized group. hese groups include gamers, extreme sports

enthusiasts. You can see the effects of this emphasis on such a target market

because itis seen in the advertising campaigns of energy drinks.

Company ame SMARTBeverages

Brand ame mart Energy rink

ackaging Aluminium slim cans

Capacity/can 250 ml

Tray 24 x 250ml

Disposable allet 160 trays

allet weight 1150kg

allet dimension 100x120x150cm

Transportation Can be organized if needed.

ayment Banktransfer or cash in hand.


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4. Market Analysisy 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 andheadaches occur in many energy drink users.

y Target Market:- TeenagersAdults Sports personsAlso Late 50s

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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y 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 anyharmful 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.

Energy Drink Price

PowerTrip Rs. 30

Red Bull Rs. 45

Real Juice Rs.30

Appy Fizz Rs.30


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5. Management TeamThe SMART Beverage Company willbe a partnership firm. The partnership

willlie between the founders of the company. Partnership willbe according totheir share of capital invested in the firm. Profit willbe distributed between

them as per their percentage share in the firm. The every decision willbe taken

with the consensus and majority of votes willbe required to take the decision.

On every important document the signature of the at least 2 members should be

there. This will also imply on the financial side of the firm. Partners and their

contribution to capital is as follow

Name of Partners Contribution

Abbasi FTinwala 50% Puneet Daga 25% Harshit Shah 25%

y Hierarchal Structure:-The hierarchal structure of the PowerTrip Company is as follow:

Board ofDirectors------------------------------------------Partners ofFirm

Chief Executive Officer-----------------------------------Abbasi Tinwala

ChiefFinancialOfficer------------------------------------ Punnet Daga

Marketing Manager----------------------------------------Harshit shah

HRManager------------------------------------------------- HardikVaghela

Production Manager---------------------------------------Sudeep Dixit

OperationalManager-------------------------------------- Pradeep Prajapati


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y The Organizational Chart:

Board of

Directors

HR

Officer

HR

Officer

Marketing

Officer

Marketing

Officer

Finance

Officer

Finance

Officer

Finance

Manager

Human Resource

Manager

Marketing

Manager

CEO


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6. Plan Summaryy Size of operation:-

We are conducting our operations in Gujarat city. First, We willbe launching

our energy drink in Gujarat and later on in other cities also. This will beavailable in allbeverages store, super markets and in shops.

y Office equipment:-We have purchased well office equipment e.g. Store Cup-Boards, chairs, tables

drink stands and other necessary equipment tools.

y Background of the Entrepreneur:-In the past we have been serving the people by offering different products

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.

y Production Plan:Ingredients

Nutrition Value per 250mlEnergy 211k

j

(4 . kcal)

Protein 0,5 g

Carbohydrates 10,5 g

Fat 0 g

Fruit pul ps 30 g/l

Caffeine 70 g/l

Vitamin B 3 7,2 mg (min.40%

RDA)

Vitamin B 5 2 mg (min.33%RDA)

Vitamin B 0,8 mg (min.40%RDA)

Vitamin B12 0,4 mg (min.40%

RDA)


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y Methods Used To Establish The Degree Of Purity:-The samples of the product have been analyzed according to the United

Nations ST/NAR/7 Manual, using the method of Gas Chromatography

Mass GCM.

y STAGES OF PRODUCTION PROCESS:-1. Reception

Selected different fruits are first received at the Production Plant.

2. Crushing

Then the fruits are crushed after removing solid impurities through Sieving.

3. Maceration

During this process, the wet crushed fruits are left in the hydro alcoholic

solution to separate into hydro soluble constituents by soaking until the fruits

have taught the proper amount of tannins.

4.A

lkalinisationNext, 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. Strategyy Operational plan:-Operational plan of the product includes inventory, shipping, storage,

inventory control procedures, and customer services.

i) Just in time inventory system will be used in case of our product. It will reduce the storing cost also which will give us

competitive edge against our customers. There will be no of

suppliers of raw material to avoid any kind of problem in future.

ii)All manufacturing operations will take place in own factory.For this purpose machinery needed has alreadybeen installed.

iii)Outward suppliers will pay the shipping charges for the finishedgoods. In case ofbulk purchase company will pay 30% charges.

Purchase of 50,000 units in a month is the limit for the purpose.

iv)Experienced workers willbe hired from other industries as parttime workers at a cost of Rs. 300 per day which will train our

employees.

v)Finished products of the drink willbe stored in company rentedbuilding which has the capacity to store 100,000 units in it. Rent of

thebuilding is Rs.10,000 per month.

vi)We will maintain the finished goods inventory of 30,000 unitsat any time (including factory).

vii) A survey will be conducted after every six months periods including finding out the market trends and consumer

demands about the product. Later on product can be changed

according to the needs.


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y PlaceIn 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 willbe available even in the small shop of rural a rea.

y Main SuppliersDifferent suppliers in beverage sector in Gujarat and also we would like to take

the help of some Agents also.

y Marketing Distribution ChannelSmart Energy Drink willbe sold through indirect marketing distribution channel

in which only Retailers are involved. Retailers can buy the product and sell that

product directly to the final consumer for their personal and nonbusiness.

Some of major store retailers are:

Super markets Departmental store Food and beverages store Convenience storey 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.

Purchase price of retailer of 1 can is Rs.30


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y Discounts, Allowances OfferedIn the competition with other energy and fruit drinks Power Trip tries to gain

market share by giving at same price as competitors but with more quality and

quantity, and also we would like to reduce price in special events such as

Diwali,Navratri,Ramadan offer and other Events.

y Promotion:We will promote our product by using different communication channel.

Communication Channels

T.V campaigns (through Cable) Billboards LocalNewspapers Advertising Campaigns


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8. Financial Plan:Projected financial statement of company listedbelow:

Pro Forma Income Statement ( 000s) 2009 2010 2011

Sales 00 9000 12000Less: cost of sale (2200) 3000 4000

Gross Profit 4400 000 8000

Operating Expenses

Salaries 1 30 1950 2500

Rent 900 900 900

Sales & Marketing Exp 400 700 1100

Utilities 200 350 00

Office Exp 200 330 550

Deprecation 70 70 70

Tax 400 550 700Total operating Exp 3800 4850 420

Net Profit 00 1150 1580

Pro Forma Balance Sheet First year ( 000s)

Assets

Current Assets

Cash 50

Account Receivable 120

Inventory 300Total current assets 1070

Fixed Assets

Office equipment 400

Plant 300

Less Deprecation (70) 30

Total assets 1700

Liabilities & owner equity

Current liabilities

Account Payable 100

Total Liabilities 100Owner equity

Equity 1000

Retain earnings 00

Total owner equity 1 00

Total Liabilities & owner equity 1700


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Pro Forma Cash Flow first year ( 000s)

Net income 00

Add: deprecation 70

Increase in inventory (300)

increase in debtors (120)

Increase in creditors 100Net Cash flow from operating activities 350

Payment to fixed assets (700)

(350)

Balance 1000

Net cash flow 650

Break even Analysis:

We are determining the breakeven point graphically.

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 pointsatisfying 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.

0

1000

2000

3000

4000

5000

6000

7000

8000

0 50000 100000 150000 200000 250000

Fixed Cost

Sales

Total 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.

Variable Cost per unit: 10

Fixed Cost: 3800000

Expected Unit Sales: 190000

Break even Volume: fixed cost / price variable cost

3800000 / 30 10 = 190000

Pro Forma Sources and applications of fund ( 000s)

Sources of fund

Personal fund 1000

Net income 00

Add:Deprecation 70

1670

Application of fund

Plant & Office Equipment 700

Inventory 300

Total fund expanded 1000

Net increase in working capital 70

1670

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