Prepared By:-

Abbasi F. Tinwala
Roll No.50,
Term 4, SKIPS

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Sr.No Contents Topics Covered

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 Index Page

1 Company Description  Co-owners

 Description of Business
 Financing
2 Executive Summary
 Mission
 Slogan
 Vision
 Objectives
 Keys to Success
 Company Highlights
3 Product  Product Description
 Packaging
4 Market Analysis  Market Research
 Target Market
 Competition
5 Management Team  Name of Partners-
Contribution
 Hierarchal Structure
 The Organizational Chart

6 Plan Summary-  Size of operation

Strategy  Office equipment
 Background Of The
Entrepreneur
 Production Plan
 Methods Used To

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 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.

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
 Mission:-
“Our mission is to serve people by providing quality energy drink”

 Slogan:- “For Smart People”

 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:-

 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 advertisement
budget to enhance future product developments.

 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.

Company Name SMART Beverages

Brand Name Smart Energy Drink
Packaging Aluminium slim cans
Capacity/can 250 ml
Tray 24 x 250ml
Disposable 160 trays
Pallet
Pallet weight 1150kg
Pallet dimension 100x120x150cm
Transportation Can be organized if needed.
Payment Bank transfer or cash in hand.

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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.

Energy Drink Price

Power Trip Rs. 30
Red Bull Rs. 45
Real Juice Rs.30
Appy Fizz Rs.30

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 5. Management Team

The SMART Beverage Company will be a partnership firm. The partnership

will lie between the founders of the company. Partnership will be according to
their share of capital invested in the firm. Profit will be distributed between
them as per their percentage share in the firm. The every decision will be taken
with the consensus and majority of votes will be 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 F Tinwala 50%
 Puneet Daga 25%
 Harshit Shah 25%

 Hierarchal Structure:-
The hierarchal structure of the Power Trip Company is as follow:

Board of Directors------------------------------------------Partners of Firm

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

Chief Financial Officer------------------------------------ Punnet Daga

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

HR Manager------------------------------------------------- Hardik Vaghela

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

Operational Manager-------------------------------------- Pradeep Prajapati

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  The Organizational Chart:

Board of
Directors

CEO

Finance Marketing Human Resource

Manager Manager Manager

Finance Finance Marketing Marketing HR Officer HR Officer

Officer Officer Officer Officer
Officer

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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.

 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.

 Production Plan:
Ingredients

Nutrition Value per 250ml

Energy 211k (46.6kcal)
j
Protein 0,5 g
Carbohydrate 10,5 g
s
Fat 0 g
Fruit pulps 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 6 0,8 mg (min.40%
RDA)
Vitamin B12 0,4 mg (min.40%
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RDA) BUSINESS PLAN
  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.

 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. 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.

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 already been installed.
iii) Outward suppliers will pay the shipping charges for the finished
goods. In case of bulk purchase company will pay 30% charges.
Purchase of 50,000 units in a month is the limit for the purpose.
iv) Experienced workers will be hired from other industries as part
time workers at a cost of Rs. 300 per day which will train our
employees.
v) Finished products of the drink will be stored in company rented
building which has the capacity to store 100,000 units in it. Rent of
the building is Rs.10,000 per month.
vi) We will maintain the finished goods inventory of 30,000 units
at 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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  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.

 Marketing Distribution Channel

Smart Energy Drink will be 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 non business.

Some of major store retailers are:

 Super markets

 Departmental store

 Food and beverages 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

 Discounts, Allowances Offered

In 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.

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

Communication Channels

 T.V campaigns (through Cable)

 Bill boards
 Local Newspapers
 Advertising Campaigns

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 8. Financial Plan:
Projected financial statement of company listed below:

Pro Forma Income Statement ( 000s) 2009 2010 2011

Sales 6600 9000 12000
Less: cost of sale (2200) 3000 4000
Gross Profit 4400 6000 8000
Operating Expenses
Salaries 1630 1950 2500
Rent 900 900 900
Sales & Marketing Exp 400 700 1100
Utilities 200 350 600
Office Exp 200 330 550
Deprecation 70 70 70
Tax 400 550 700
Total operating Exp 3800 4850 6420
Net Profit 600 1150 1580

Pro Forma Balance Sheet First year ( 000s)

Assets
Current Assets
Cash 650
Account Receivable 120
Inventory 300
Total current assets 1070
Fixed Assets
Office equipment 400
Plant 300
Less Deprecation (70) 630
Total assets 1700
Liabilities & owner equity
Current liabilities
Account Payable 100
Total Liabilities 100
Owner equity
Equity 1000
Retain earnings 600
Total owner equity 1600
Total Liabilities & owner equity 1700

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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

Break even Analysis:

8000

7000

6000

5000

Fixed Cost
4000
Sales
Total Cost
3000

2000

1000

0
0 50000 100000 150000 200000 250000

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 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.

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 600
Add: Deprecation 70
1670
Application of fund
Plant & Office Equipment 700
Inventory 300
Total fund expanded 1000
Net increase in working capital 670
1670

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