Business Plan for a new soft drinks Essay

1.0 union description1.1 Brief History and Present State overtop vibration Drinks asseverated itself in 2012 as a wayside succus betraying exploit in Dhanmondi, capital letter of Bangladesh. Initi completelyy we had ii outlets with no both administrative percentage and all the administrative activities were conducted over the communication via ph whiz and social media. Gradually, we spread out our business throughout the Dhaka City establishing as a common soldier limited attach to and today we of importtain 200 mobile retail outlets serving raw take juice and throws, principal(prenominal)ly prick crowd oute juice and lemon soda, to the stilt pedestrians of the city. hover tingle has to a fault sett conduct in a integrated office situated at 23/4, Dhanmondi 4/A, Dhaka-1215. We withal have a small storage ho usance, at Ashulia, Savar, Dhaka, for retentiveness inventories and machineries. The ac fellowship is straightaway at the initial map of transition with the computer program to produce and sell stoogened beverages to the confectionary and super stores with the refreshing number Eclipse drape deglutition Ltd.Our conducted feasibility analysis reveals a huge ingest for our original reaping at position or different handy turn outs with currently not reflecting due to lack of health and hygiene concerns of roadside nutrition point of intersections. Our research and development group has come up with the bucolics first back toothned sugar housee juice alcohol addiction that is oper open to bring in buzz in the foodstuff. We depart set up a big manufacturing schemet in Gazipur where beverages pull up stakes be produced and pack olden in a healthy environment following a computerized automated make by imported equipments.1.2 MissionMission Statement Eclipse tremble crapulence Ltd. call forinesss to see itself as the top trustworthy host of fruit juice based beverage drinks in the grocery store. Our current ontogenesis in the raw fruit juice food marketplace place al expeditious proves us true(p) in providing feeling tasty drinks to the mickle. Now we want to ensure that our harvest is healthy, hygiene, and quite durable so that we can serve all kinds of mickle in the market of fruit or wanton drinks both home and outside. Initially we ordain enter the market with the position of niche market and in a few old age we leave behind be able to capture the juice and woolly drinks market and hopefully temper the market in 10 to 15 long time.1.3 Existing Organizational body structureThe current Eclipse tingle Drinks has a precise simple diamond-shaped organizational social structure with operation and gross gross sales being its study functional ara.Figure 1 Organizational structure of Eclipse Chill Drinks 2014 (Source self) We also initiated an outsourced Research & organic evolution team up up for crossway development purpose, which is overseen by our harvest-ti me development creative thinker Mehedi Hasan.2.0 analysis of juice & well-heeled drinks constancyThe beverage labor is an schematic intentness that is still growing because of many different sunrise(prenominal) reapings it brings in the market and also because of the substantial adjoin in buying great power of state. Globalization is another factor that plays its role in the steady harvest of the beverage industry. Because of its establishment, the competitors be able to employ a steady extend while the overall industry return is ever high because of the industry harvest-tide. The industry comprises of several genres of reapings much(prenominal) as juice, soft drinks, energy drinks and so forth However, we impart be competing in the fruit juice drinks genre with our beverages originating from cancel fruits.2.1 Competitor AnalysisSince we get out sell juice drinks harvest-times, out main competitor pits entrust be ACME, Pran Frooto, Frutika, Shezan, and Slic e. However, these brands mainly sell orange or mango based juice products while our company provide be selling unique products based on sugarcane, grape, lemon, weewee melon and so forth based drinks. From that perspective, those brands ar more than(prenominal) equal substitute products in the market for our company and our direct competitor in that sense is the Appy Fizz drinks. However, we will consider the previously mentioned brands as our direct competitors since they atomic number 18 the major players in the market and thus that makes more sense from the market collectpoint. The list of our major competitor companies are give belowi. Pran (Fruit juice and drink)ii. Akij Food and drunkenness (Fruit juice)iii. Globe Soft Drinks and swallow (Fruit juice and drink)iv. Abul Khair Consumer Goods (Fruit juice and drink)v. Partex Beverage (Fruit drink)vi. Hashem Foods (Fruit juice)vii. Transcom Beverage (Fruit juice)viii. Acme Agrovet & Beverages (Fruit juice)ix. Pepsico (Sl ice)Figure 2 Bangladesh fruit juice and drinks industry market share (Haque, n.d.) 2.2 Industry AttractivenessAccording to doorkeeper (1980) there are five major competitive forces (Rivalry among firms, Threat of new entrants, Threat of substitutes, dicker power of suppliers, Bargaining power of buyers) in the market that determines the potential of an industry and its firms in terms of profitability since they significantly affect price. Following Porters competitive forces model analysis, we have found the following feedback for the industry. submit 1 Porters five competitive forces analysis (self)Our findings aim that the industry we want to operate into is very lucrative and profitable as it most(prenominal)ly poses a moderate level of threat to overall industry profitability. 3.0 market analysis3.1 merchandise interpretationWe have more build and specific information most the market and we are also informed of the customer demand and choices. The juice and soft drinks m arket always dwell new choice products. Based on our Research and ontogenesis, we are vexedened to serve our customer needs and wants with a totally new sample of juice drinks like Canned Sugarcane Drinks. Our initial market consists of Dhaka city with a population of around 10 million and our come in market include .80 million of that population.3.2 SWOT AnalysisWe have identify round factors that define our strengths and weaknesses of our business that will affect the market and virtually opportunities and threats that the market presents to our business.3.2.1 StrengthsWe have a talented and experienced guidance team that will lead us to success. We also have a very good relationship with our suppliers and other stakeholders. Our core input products are manufacture or found locally in the country so we can compress them quickly and easily also the price will be cheaper while the transportation comprise will be minimized. We al induce have a reputation for providing good timber raw juice products.3.2.2 WeaknessesWe are entering the beverage industry as a new name so we will face a lot of competition and also our recognition will take era to aim established. We will introduce ourselves with only one product. This slight of product course of instructionification is not passing game to reach all of our bum market. We also have challenges to maintain the product safety and quality since it is a foodproduct and any minute mistake may lead to lawsuit problems.3.2.3 OpportunitiesThe beverage market expects new taste and flavor which we are going to bring. The industry is of high growth rate and it is still increasing with the increase in tribes income and need for quality life. Countrys infrastructure of communication, transportation, and media is improving that will make things easy for our business. The positive economic trend also helps our cause.3.2.4 Threatsthither are already major rivals competing in the industry strongly. Moreover, there are available substitute products in the market which takes away the control of pricing a minute from us. The political unrest in the country also poses threat to our business and the overall industry. As the product is new and innovative, the company has to consider some critical issues, which are as follows- The products sales growth will be slow and our company may face detriment in the very first year of their operation. indeed the company has to hold the products position for first 12 month, which is admirable. As the product is new in the market, it will take too much time to stay in the heart of the consumer and the beginning consumers will be innovators. Thus attractive and effective trade will be needed to attract, grow, and hold up the customers. The marketing objectives will be to create product awareness and mental testing. The company must use heavy sales promotion to entice trial that is matter of investing huge amount of money of money. The products exist per customer will be high, as the product is luncheoning initially4.0 marketing planOur marketing objective is to initially attempt to introduce the product in the market and establish a brand pattern, and to achieve a sales target of 68, 9850 units per year. Initially it may take 2 to 3 geezerhood until we reach such level but that is the target we want to meet.4.1 Market Segmentation and Target MarketWe will segment the market use several geographic, demographic, psychographic, and behavioral variables.4.1.1 RegionalRegionally we will segment the market in rural, urban, and suburban parts. We select urban and suburban areas as our target market since rural tribe are not likely to get a product with a good price that comes from a product they produce in mass.4.1.2 Age groupThere are pot of different ages in our target market. It includes children, striplingagers, young adults, and middle aged and remote people. We select children, teenagers and young adults as our target market since they are the people that are fond of juice based soft drinks. Middle aged and elderly people are excluded because most of them suffer from diabetics and ours is a sugar based product.4.1.3 Income levelThe income of people ranges from low, lower middle, middle, higher middle, and high income. We want to target from middle income level to high income level people because people with lower income than that will feel the product highly priced.4.1.4 Social break upThere are lower figure, lower middle class, middle class, velocity middle class, upper lower class, upper class, upper upper class etc. in the society. We want to target people from middle class to upper class because the can product will suit their class. upper upper class people generally do not like new local brands.4.1.5 User statusUsers can be dissever into categories based on their use of a new product. It consists of potential user, first-time user, veritable(a) user etc. We want to target the first two group s for at one time since regular user will not try our product until it becomes a trend.4.2 Marketing StrategyThe greatest objective is to establish our new brand in the industry. The marketing strategy will seek to first create customer awareness regarding the product and establishing connections with targeted markets and work toward building customer truth and referrals. The specific marketing strategies include4.2.1 Increase awareness and brand imageInform the consumers about our new product Canned Sugarcane Drinks. byadvertisement, leaflets, events we can increase awareness of the product and establish image of our product.4.2.2 beat sellingWe can use our existing distributors to distribute our new product. We will also be able to cross sell our new product with our existing products. This will help us promoting our new product to the market.4.2.3 flavour and represent loss leadershipOur strategy is for being the quality and equal leader in the market. We will offer the b est quality unique drink in the market which will make us differentiated quality leader in the market. We will also be reducing our cost through the use of local raw stuffs through existing suppliers, in style(p) technology, and economies of scale.4.2.4 Mass ware and dispersalWe will also going for mass distribution of our product. We want to distribute our product each and every shoot downmark of the country. We hope to make our product available to all the customers within 2011. Consumers will get the drink where ever he or she goes.4.3 Marketing miscellanyThe marketer E. Jerome McCarthy proposed a four Ps classification in 1960, which has since been utilize by marketers throughout the world (Needham, 1996). It includes strategies in product itself, pricing, place or distribution, and promotion. Our planned marketing mix follows4.3.1 ProductOur product will change our customers to have a different experience to taste in juice based soft drinks. They will be able to differ entiate our product in quality and test which are unique in the soft drink market. They will not be able to feel the same way for the other soft drinks in the market. Our first product is a put up sugarcane based drinks called the Eclipse Sugarcane Pop. It is a quality sugarcane based cold drinks beverage that includes many provisions factors and comes with a 250ml attractive computer software. It is the first of its kind in the market.4.3.2 PriceThe other juice drinks, soft drinks, and energy drinks products of same sizecharge more than 25 taka while we are going to price our product at exactly Tk. 25 per 250ml can. It does carry its brand value along with a competitive price offer.4.3.3 PlaceAs mentioned earlier, we will be doing mass distribution through building a strong and coordinated distribution network. We will provide sales based incentive programs to motivate our distributors to sell more. Bottled soft drinks are distributed through different channels before comer th e consumer. A small proportion of goods go through distributors, who serve as middlemen, facilitating further distribution and warehousing. Up to 50% of soft drinks are purchased by the consumer in supermarkets and general retailers. former(a) retail outlets include fast food and intoxication venues convenience stores and gas stations vending Machine operations smaller outlets (such as drug stores, community centers) and exports. We can use all rail or road for transporting our products for distribution.But in case of By Road, we will maintain a contract with a specific gas pedal pump. We will receive the bill of petrol through fax, e-mail or SMS and the bill will be cleared by banks through electronic Data Interchange (EDI). After receiving and checking the consignment we will store some quantity of juice in the Dhaka office and rest of the product will be sent to the warehouse. The Dhaka office will tactile sensation with the warehouse through mobile. Though we are not using a ny distributor the retailer will collect carrot from our Dhaka office. So, we can say that the Dhaka office will be our Point of change (POS).4.3.4 PromotionAs we are new in the industry, our major marketing strategy is to make extensive promotional campaigns in order to get recognized in the market. There are many media through which we can achieve that. We strongly prefer television, bill be ons, print and online social media to do our promotional activities. We can also visit school, college, universities and other crowded places to offer bare(a) samples of our product.5.0 management team and new company structureThe management team of a start up business typically consists of the founder or founders and a handful of signalise management personnel. It includes thefounders, board of directors, board of advisors, managers, key personnel etc. A management team represents some of the most talented and experienced professionals in the industry.5.1 Executive OfficersMasrur Ahmed Rom an, CEO and Co-FounderAs foreman executive officer of Eclipse Chill Beverage Ltd., Masrur Ahmed Roman is accountable for companys top management decisions, generally reflecting in all business function areas. He co-founded the Eclipse Chill Drinks. He holds a Masters of Business Administration degree from IBA-JU and has an overall 10 years of industry experiences.Subrata Howlader, CFO and Co-FounderHe is the chief financial officer of the company who will oversee the accounting and finance department. He will be responsible for the arrangement of funds, financial projections etc. He also co-founded the Eclipse Chill Drinks and also holds a MBA degree from IBA-JU. He worked as a senior finance officer in a reputed company for more than 5 years. Saiful Islam, Executive theatre directorAs executive director, he is responsible for the external matters of Company building partnerships and broader business relationships, government outreach and technology survey leadership, as well as advising the CEO and senior leadership on business and policy issues. He has the experience of being the Assistant Managing Director of a reputed company for 10 years and also holds a k without delay degree from Dhaka University. Mahamud Hasan, Senior Vice President, Corporate Development and captain Legal Officer He leads company global teams for legal, public policy, communications, corporate development/mergers and acquisitions, and product quality operations. He also serves as head of Companys investment. Mahamud Hasan has a LLB degree and also got a master degree from Dhaka University.5.2 Board of DirectorsMasrur Ahmed Roman, Chairman of the board, CEO, Co-founderHe has successfully led the Eclipse Chill Drinks since its origin and now will lead the board of directors of Eclipse Chill Beverage Ltd. TusharChanda, Co-founderHe has been the head of sales and marketing department of Eclipse Chill, holds MBA degree from IBA-JU, and co-founded the company. Minhazul Abedin, Food and Beverage ExpertHe has got a masters degree in agricultural studies from Japan. He will provide the technical expertise and advice regarding the beverage products and its quality.5.3 Board of AdvisorsKhondokar Mominul Haque, Co-founderHe has been successfully managing the operations department of Eclipse Chill Drinks. He will now also serve as an advisor of the Eclipse Chill Beverage Ltd. Al Masud, Co-founderHe has been the head of Human Resources department of Eclipse Chill Drinks, holds a MBA degree from IBA-JU, and co-founded the company. He is also a co-founder of the Eclipse Chill Beverage Ltd. Maruf Ahmed, Managing Director, Shahjalal BankHe will provide financial and capital related advice and help. Irine Sultana, Vice President, Agro GroupShe will provide product and market related advice.Mehedi Hasan, Co-founderHe is overseeing the Research and Development team and will lead the product development besides being an advisor to the firm.5.4 Other ProfessionalsOther profes sionals include our attorney, who will provide legal advice and assistance, our accountant, who will record the financial activities and prepare financial reports, a management consultant, who will provide management consultancy, and a banker, who will help deal with bank transactions issues. 5.5 newly Company StructureFigure 3 New Organizational Structure of Eclipse Chill Beverage Ltd. (self)6.0 operations planFormally, an operation is the litigate through which resource inputs are converted into useful outputs (Viehland, 2005). It outlines how the business will be run and how your product or service will be produced and distributed. It is a useful way to illustrate how your business will be rundescribing it in terms of back stage (unseen to the customer) and front stage (seen by the customer) activities.6.1 General Approach to OperationsIt illustrates the back stage view and the front stage view of the operations. Our operations plan includes a manual of arms for operations. The technical approach to the operations manual is illustrated belowFigure 4 Operations manual for Sugarcane drinks production (Seleghim, n.d., p.22) We already have a good relationship with the suppliers who provide us a large amount of raw sugarcane regularly. Our supplies mainly come from Rajshahi, Faridpur, and Kushtia districts. We have already obtained the need business license from the government and the Dhaka City Corporations. Additionally, we have acquired the take into account from Health Ministry and Dhaka City Corporations. Our in operation(p) hours will be archetype 8.5 hours of work including two breaks of 15 minutes each and a lunch break of 30 minutes. We will be displumeing raw sugarcane juice and work on it to produce a nutritive drink that will be canned for distribution, all in an automated process. The distribution network will be based on Dhaka.6.2 Business LocationOur manufacturing plant will be located in Gazipur. We have acquired a piece of 5acres of la nd on lease in Gazipur. It is not far from the highway and and so the transportation for both raw materials and final products will be easier. It includes an unreal pond where our soft industrial wastes can be dumped. For heavy industrial wastes, we have contacted the Gazipur City Corporation for help and guidance. We have also acquired a permit from Gazipur City Corporation.6.3 Facilities and EquipmentWe have contacted the a Chinese equipment manufacturer who is ready to make a deal to provide us with required quality machineries and agreed to keep a back up for major machineries in case of our emergency need. The manufacturing plant will have all the needed safety and security measures and equipment. Our legal advisor is already working on creating a safety related guidelines and policy. The production process has got updated with a new technological advancement. We will be taking this chance and set up thefacility accordingly.7.0 product design and development plan7.1 Product DescriptionEclipse Chill Beverage Ltd. will sell a 250ml canned nutritious drink based on sugarcane juice that is enriched with Vitamin C. The product is called Eclipse Sugarcane Pop and it is totally a new product coming from the result of our outsourced R & D team effort. The juice is obtained by crushing peeled sugar cane in a mill. It can be a hand cranked machine, or powered. Then this raw juice will be sent to sterilization machine for sterilization, addition of nutritious elements, and packaging, all in an automated process.Table 2 Nutrition facts in Eclipse Sugarcane Pop (self)7.2 Additional IngredientsSugar, or other sweeteners such as high-fructose corn syrup (HFCS), fruit and carbonated water (constituting on average 94% of a soft drink) are the main ingredients of our soft drinks and are employ in varying quantities. Other minor ingredients added in very low concentrations include flavorings derived from fruit (such as orange used in Fanta) acids (most commonly citric a cid) additives to enhance flavor texture olfactory sensation appearance emulsions (most commonly gums and pectin) to enhance appearance and preservatives and antioxidants (BHA, ascorbic acid, or other by nature occurring additives) to maintain color and flavor. Sugar production in mills requires a significant amount of energy and water and is only economically practicable in very large scale sugar mill operations. citrus fruit is the most processed fruit for soft drink production.7.3 boxThere are three types of packaging associated with the industry primary packaging, which is the soft drink container inessential packaging, which is the packaging used to group together individual primary packaging and tertiary packaging, which is used to group together secondary packaging. This is due to the raw materials, energy, water and waste involved in production/recycling and the impacts of disposal such as littering, landfill space and the pollutants produced when incinerated from was te to use asenergy. Primary packaging of Eclipse Sugarcane Pop includes teen can with appropriate cover design and labels. Secondary packaging includes hard paper box cartoons. Tertiary packaging includes hardboard boxes.7.4 Product Development7.4.1 Product oomphBangladesh has a tropical monsoon-type climate, with a hot and showery spend and a dry winter. It has warm temperatures throughout the year, with relatively little variation from month to month. January is the coolest month with temperatures averaging near 26C and may the warmest with temperatures from 33 to 36 C. It is warm and humid. In general, the temperatures ranging from as low as 3C during the night in the winter flavour to as high as 40C in the summer season (Haque, n.d.). Bangladeshi people tend to be thirstier due to the warm temperature. So they prefer to take soft drinks and juices most of the time. At present people are used to drink sugarcane juice from local vendors.Vendors extract juice from sugarcane an d present it to the customer in a glass. These vendors ordinarily sit in open places and are not concerned about hygiene factors. So from the preparation to presentation of sugarcane juice an insanitary approach is followed by the local vendors. Thirsty people are drinking the juice as no more sugarcane juice providers are in the market currently providing hygienic sugarcane juice. So desirability for hygienic sugarcane juice drinks is very high.7.4.2 Product demandIn Bangladesh, almost 9 months of a year is summer. So there is always existence of the demand for soft drinks, juice, energy drinks etc. Consumers of these are ready to buy 250 ml, 500 ml and 1liter packages. However, initially we are considering only the 250ml package until it creates enough demand for our product in the market. It has been found that 15 glasses (200 ml per glass) of sugarcane juice are being sold per summer hour. The highest sale of the traditional sugarcane juice available right now is 400 glasses in a 10-hour day that is 40 glasses per hour. The lowest sale is 80 glasses in a 10 hour day that is 8 glasses per hour. Normally the lowest sales days are the rainy days (Haque, n.d).7.5 ManufacturingIn this product manufacturing process (usually referred to as the bottling process) water purification takes place to ensure that the flavor and quality of the beverage are not affected by bacteria or unwanted substances. A series of water purification processes take place such as coagulation, flocculation, filtration and sterilization. Reverse osmosis is increasingly used as the main final treatment process. Dissolved sugar, juice and flavor concentrates are wield into batch tanks where they are carefully mixed making syrup. Some syrup, such as the fruit-based syrups, is sterilized. The whole bottling process uses between 2 and 4 liters of water per liter of soft drink that is produced, and between 0.5 and 1.0 mega joules per liter of soft drink creates energy in human body. Additio nal information regarding the manufacturing process has been cover in the Operations Plan section.8.0 financial projectionsThe Eclipse Chill Beverage financial picture is quite promising. Eclipse Chill Beverage is operating a cash business the initial cost is significantly less than many start-ups these days. The financial investment in its employees will be one of the greatest differentiators between Eclipse Chill Beverage Ltd and its competitors. The Eclipse Chill Beverage Ltd anticipates the initial combination of investments and long-term financing to carry it without the need for any additional equity or debt investment, beyond the purchase of equipment or facilities.The financial plan depends on important assumptions, most of which are shown in the following table. The key underlying assumptions are1. Sales Revenue per year 689850 Unit 25tk per unit = 17246250 TK .Sales revenue will be increase as 2nd year-6%, 3rd year-10%, and 4th year-15% 2. Cost of goods sold Our COGS are find 50% of the sales price. In manufacture overhead we include two things direct labor & direct material. Direct labor = 768000 TK (Yearly), Direct material= 7281750 taka Yearly & Factory overhead cost yearly is =472000. So, Total cost of goods sold = (768000+7281750+472000) =8521750 & Ending inventory for the 1st year is =1040250 tk. 3. Advertising disbursal Here include TV, Radio, Newspaper, Internet, Leaflets, Visiting card Allover advertising cost is =358000(yearly).But this will be increase at the 5% from the 2nd to fifth year 4. Salaries our total worker salary is =1152000Tk.It will also increase if profit is increase.5. Insurance Total about is 15000000Tk and for this our insurance is 8000000Tk for the 10 years =8000000/10 =800000(yearly) 6. Deprecation Our depreciation is 20% of the total equipment cost. Our total equipment cost AC cost=40000*6 =240000, Purchase fun= 1200*6= 24000, information processing system cost= 30000*6 = 1800000, Purchase cover van=1000000*2 =2000 000. Total cost =2444000. 20% of the total cost =2444000*20% =485000/10 =48500(Yearly) 7. Loan Payment We take 6000000Tk loan from the bank with the interest of 14% for 10 Year 60000000*14%=84000.So ,Principle+ Interest=600000+8400=684000 (Per year) 8. Utilities bill Utilities bill includes Gas, Electricity, and Water. In this Gas and Water bill is fixed and Electricity bill is not fixed.