Energy dreams drink product

Published:

Beverage Business Plan

Executive Summary

Energy Dreams will sell energy drinks as its primary product in addition to juice, soft and frosty drinks known as ‘coke'. Energy drinks are soft drinks advertised as providing energy to improve physical activity of the drinker, as compared to a typical drink.

Energy drink history really begins in Europe and Asia where these popular drinks were first developed. Although there are many different varieties in countries throughout the world, RedBull was the first to be introduced in the United States and still remains one of the most popular choices. Most energy drinks, especially the initial ones, are non-alcoholic and offer a combination of energy and vitamins, primarily B vitamins. These drinks were first accepted mostly by athletes in the United States who would use the drinks to give them extra energy before and during workouts or competitions and games. However, as word spread about the effects of energy drinks, the general public entered into the energy drink craze, as well.

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Energy drinks are experiencing rapid growth and increasing in popularity: they are currently thought to be the next high-growth sector of the soft drink industry as more and more companies take advantage of the lucrative market. As people continue to seek new and better ways of achieving any kind of “high,” many people have started mixing these energy drinks with alcohol for even more excitement and fun. In fact, alcohol companies are even getting involved with the energy drink market by producing alcoholic energy drinks, such as Anheuser-Busch's new drink 180.

There's a medium high amount of carbonation. I would say this is most like a berry flavoured drink with some sourness and gumminess at first sip. The berry taste is real good; it's not the fake berry but more like a raspberry/boysenberry cross. Energy Dreams have the perfect mix of sweet and tartness in a drink that is very refreshing and crisp. This is the perfect energy drink for a hot day, or could be used as a good mixer with vodka for a nice ladies drink as well.

A drive-through business will be built on privately-owned commercial property on *** Tbilisi, Georgia. Other products will be incorporated into the business including beverages (soft and frosty drinks).

1.1 Objectives

  • To construct drive-through building on existing privately-owned commercial property.
  • To produce a net profit of at least $50,000 by the third year of operation.
  • To sell about 20 different energy and sugar-free drinks.
  • To sell other products such as juice, soft and frosty drinks.

Highlights 1 (in US Dollars)*

1.2 Mission

Energy Dreams will produce and sell energy drinks, juice with about 20 different flavours, soft and frosty drinks to consumers firstly in Tbilisi and the rest part of the Georgia and later to other countries. Retail customers will be in the low- to mid-income bracket, and will range in age from children to adults.

1.3 Keys to Success

The keys to success are:

  • Will be the first business of its kind in the city of Tbilisi, Georgia.
  • Business will be located on *** Tbilisi, Georgia.
  • Product quality will include about 20 different flavours of energy drinks.
  • Product quality will also include a large variety of continental, tropical and subtropical flavoured natural juices.
  • Business has the potential for expansion into other Country communities.

Company Summary

Energy dreams will be known for selling energy drinks to adults in Tbilisi, Georgia. Other products will include soft & frosty drinks and natural juice with about 20 different continental tropical and subtropical flavours that will be sold to children in Georgia.

2.1 Company Ownership

Energy Dreams Ltd will be owned by:

  • Founder/Director: Aleksandre Ananiashvili

Management team will be consisted of:

  • Co-Founder/General Manager: ***,
  • Accountant/Finances: ***,
  • Marketing Manage/Sales Manager: ***.

2.2 Start-up Summary

Start-up costs will be approximately $50,000 which will include facility construction including parking, inventory, mandatory city permits, and other expenses associated with opening this business. The start-up costs will be financed through a loan.

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Start-up 1 (in US Dollars)

2.3 Company Locations and Facilities

Energy Dreams will be located on *** Tbilisi, Georgia which experiences a high usage of alcoholic and non-alcoholic beverages on a daily basis. According to a research approximately from 5,000 to 15,000 units of drinks are sold through this location on a daily basis making it an ideal location for business. The majority of people buy non-alcoholic drinks during the daytime and both types after evening.

A warehouse will be built on a privately-owned commercial property which will also include parking facilities, and a small wholesale store.

Products

Main products to be sold through the Energy Dreams business will be Energy Drinks with different flavours in three main sizes: small, medium, and large. Other products will include juice, soft and frosty drinks.

3.1 Future Products and Product Description

One major product will be sold through Energy Dreams which will include Energy Drinks (original, sugar-free & berry flavoured) plus soft and frosty drinks. Besides around twenty other different continental, tropical and subtropical flavoured natural juices will be sold, include the following:

Apple, banana, blueberry, blackberry, cherry, grapefruit, grapes, kiwi, lemon, lime, mango, orange, peach, pear, pineapple, pomegranate, red water melon, strawberry, etc

Other products will include soft & frosty drinks.

3.2 Competitive Comparison

No other business in Georgia specifically in Tbilisi provides local Energy Drinks on a large scale. It is anticipated that prices will be competitive with other businesses who sell same type of products imported for other countries.

3.3 Sales Literature

Sales literature to be distributed to the general community will include fliers, advertisement in the local newspaper (***, ***), and other print media.

3.4 Sourcing

Energy Dreams will purchase products from Anheuser-Busch Companies, Inc. which manufactures and distributes high-quality energy drinks and soft & frosty drinks. All equipment and supplies are available through a regional distributor. Continental fruits will be purchased in Georgia, tropical and subtropical fruit will be supplied from Tanzania.

Market Analysis Summary

Tbilisi is geographically situated at the east side and is the capital and largest city of Georgia with the population of 1,480,000. Tbilisi is also referred to as the "centre of opportunity" with benefits becoming one of Georgia's most commercial/industrial areas.

Tbilisi where Energy Dreams will be located is accessible for all infra-structure and facilities. It connects East to West and North to South Georgia and as it is the heart of industrial areas in the country. Energy Drinks, juice and soft & frosty drinks are an ideal business for Tbilisi given, the potential market segment, location, and climate. Average price per unit ($1.25) for energy drink and other products to be sold, the energy drink business has the potential market of $100,000 gross sales by the third year of operation.

4.1 Market Segmentation

Energy Drinks are the new Super Profitable products. Everybody makes money, the manufacturer, the distributor and the retailer. You see, Energy Drinks sell for $1.99 to $2.40 at the stores for 8 to 16 ounces. This is incredible if you consider that you can buy a soda that's the same size for $0.50 to $0.75. Even a 20 ounce soda runs you about $1.25.

Distributors love the product because they make about $8 per every case they sell compared with about $2 to $4 for their other products. Retailers love it because they can make from $16 to $20 per case.

This business is work, but there is a lot of profit in it and even more fun. You have special events, parties, promotions, and you can spin and position your products the way you want, having fun in the process.

Energy Dreams will target all segments of Tbilisi's population: children, teenagers, and adults. The Club lovers will be of special interest most of energy drinks are drunk mixed with alcohol. This population will be also targeted with different flavoured juices and soft & frosty drinks.

4.2 Target Market Segment Strategy

Energy dreams will target the low- to mid-income consumers who want to have a high quality drinks for moderate prices. Energy dream's product meets the quality required by these customers as it will also be available to the large markets in Tbilisi with its fruit flavoured juices.

4.2.1 Competition and Buying Patterns

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The energy drink business will be new to Tbilisi. Competitors in this type of business primarily sell fake or in very expensive prices and do not focus on the customers need. One major competitor is the “Red Bull" located in Tbilisi as well. It sells Red Bull drinks throughout a country, but the products they import are from India or Arabia and are not the original one. Other competitors sell very little variety of products in high price or the product is not properly marketed or served all around the country, even the city.

The keys to success will definitely focus on selling Energy Drinks Original and Natural Juices made with different types of fruits and selling high quality Soft & Frosty Drinks. Prices will also be competitive with those of the competition.

4.2.2 Main Competitors

Main competitors include the Red Bull, Coca-Cola or Pepsi, and other beverages. The following are strengths and weaknesses of each.

4.3 SWOT Analysis

The following SWOT analysis captures the key strength and weaknesses within the company, and describes the opportunities and threats facing Energy Dreams.

4.3.1 Strengths

  • A unique, local production manufactured in Tbilisi, Georgia.
  • Excellent management team and staff who are highly trained and very customer attentive.
  • Great prices (cheap prices).
  • Wonderful quality
  • The ability to scale rapidly through out the country because of big market.

4.3.2 Weaknesses

  • The lack of visibility and brand equity of a start-up business.
  • Lack of true experience running a business.
  • Government intervention.

4.3.3 Opportunities

  • Outside pressure on consumers to purchase product (ads and entertaining events).
  • The constant growth of the number of customers as new quality product available at the market.
  • No other similar beverages in the country and nearby countries.

4.3.4 Threats

  • The entry into the market by other established company.
  • New production into the market.
  • Customers loyalty to the production from the very beginning.

Strategy and Implementation Summary

Energy Dreams is planning for slow growth by expanding flavours available from 20 to 30 in year two of operation. Also, an additional product to be sold in year two will include mineral water and bear in different types of bottles or cans.

5.1 Marketing Strategy

Energy Dream's overall marketing strategy will be to create an image of offering the highest quality energy drinks in the country. The business will be located in Tbilisi. Customers will be reached through advertisements such as fliers, newspaper ads, and through its grand evenings.

A special marketing program will also be incorporated by offering special coupon prices for nearby restaurants, motels, city pool, the donut shop, and the gas station to customers who purchase any product at Energy Dreams.

5.1.1 Promotion Strategy

Energy dreams will promote energy drinks to customers by:

  • Flier distribution to consumers' homes within a ten-mile radius.
  • Internet and newspaper advertisements will be purchased during the first three months of business until a clientele is built.
  • Energy Dreams will offer discounts to recreational groups such as children/adult basketball and football teams who play in nearby facilities.
  • Promoting products for an introductory price at its Grand Evenings.
  • Marketing will be conducted through newspaper and internet advertisements and local flier distribution during the first three months of operation.

5.1.2 Pricing Strategy

Energy drinks will be offered at the following prices:

  • Small $1.00
  • Medium $1.25
  • Large $1.50
  • Soft & Frosty Drinks
  • Regular $0.79
  • Large $0.99
  • Natural Juices
  • Regular $1.35

Products will be sold either on cash or direct card basis.

5.2 Sales Strategy

Sales strategy will be directly linked to marketing programs since all sales will be both through the business facility or online.

5.2.1 Sales Forecast

Consumer sales will start in January, 2011 (or sooner if construction is completed before the targeted date) with a grand opening anticipated by then. Sales and units costs for the first six months of 2011 are shown in the sales forecast as projected numbers. As indicated, primary sales will occur during the peak warm weather months as notedin the following chart and table.

Sales by Monthly 1 (in US Dollars)

Sales by Year 1 (in US Dollars)

Financial Plan

  • We want to finance growth through cash flow or online buying. We recognized that this means we will have to grow not very rapidly.
  • The most important indicator in our case is that minimal inventory will have to be stored for these products.

7.1 Important Assumptions

Monthly sales are the largest indicator for this business. There are some seasonal variations with the months of March through October being the highest sales months.

WARNING!!! No Financial Plan. It needs a lot of research that I haven't done yet. Besides I haven't studied finance for that time!!!

[1] Red Bull - is an energy drink that is sold by Red Bull GmbH from Thailand and Austria.

Anheuser-Busch Companies, Inc., - a wholly-owned subsidiary of Anheuser-Busch InBev, is the largest brewing company in the United States. The company operates 12 breweries in the United States and nearly 20 in other countries. It also operates ten theme parks across the United States, through the company's family entertainment division, Busch Entertainment Corporation.

Tbilisi - is the capital city of Georgia

Net profit - In business and finance accounting it equals to the gross profit minus overheads minus interest payable plus/minus one off items for a given time period.

[5] Gross Margin - can be defined as the amount of contribution to the business enterprise, after paying for direct-fixed and direct-variable unit costs, required to cover overheads (fixed commitments) and provide a buffer for unknown items. It expresses the relationship between gross profit and sales revenue.

  • Sourcing - it's not the final decision (information given above is not based on research).