Report on Business Plan for Beverage Industry

This business plan for a non-alcoholic beverage company named RECHARGE includes a detailed analysis of the industry and market trends, SWOT analysis, risk assessment, marketing plan, sales strategy, operation plan, and management and organizational plan. The company is targeting health-conscious customers and is focusing on three brands under its head - café, cold drink, and energy drink.

Running head: Report on Business Plan for Beverage Industry
Report on Business Plan for Beverage Industry
Name of the Student
Name of the University
Author Note

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Report on Business Plan for Beverage Industry
Executive summary
A successful business is a work of passion, enthusiasm and hard work. The business plan
forms the core framework to start a business. The business framework gives basic view of the
business map. How the business going to take shape, where will it start, how will it garner
profit. So the framework or the business plan is a map that defines the nature and the purpose
of the company, its strength, weakness and strategic goals. It helps to understand the
marketplace and competition and helps the business to grow.
The business plan for your food and drink company helps the entrepreneur to define the
uniqueness of selling position It also encourage the entrepreneur towards the realistic goal.
As the food market is one of the most sought after business in today’s world. There are
thousands of variety in food and more than 100 in beverage. The beverage industry is
growing fast with more health consciousness customer who wants drink healthy. The
opportunities in these field are also increasing with the new fashion trend of health and
fitness. A well-researched business plan generally eliminates the threats and challenges of
initial stage and gives an effective solutions. By drafting a financial model one can make
projection of cash flow and financial income. By planning long and short term milestone is
very essential or the purpose so that the company can focus properly what to achieve in the
first year and later on. The path of the business plan also requires an in-depth customer
analysis to better understand the customer and their taste and preference. A business plan
makes a solid foundation for a well sorted start where the threat, opportunity, customer
preferences are well calculated.
The food and beverage market in USA has almost captured a huge market and the revenue
stands at $18374 mn for 2019 and it is 14.3% high from the past year. The number of user
increased is 9.5% from 2018 almost 165 mn users. The expected market revenue for year 2-

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Report on Business Plan for Beverage Industry
23 is almost around $27872mn. The user penetration is 49.7% in 2019 and is expected to
reach to 64.8% in 2023.
The beverage market is divided into several segments. For example bottle water, tea, coffee,
hard drink, soft drink like cola, Pepsi, health drink like Kombucha, Dirty Lemon and so on.
There are big players in the market who have already capitalized the beverage market these
are Pepsico Inc, Nestle, Coca-Cola Inc, Kraft Heinz co and Danone North America. The sales
for these companies are grand and any new player in the market has to first try to target their
clients so that the old market becomes their new market.
The company formed is a Non-alcoholic firm which is having its product named as
“RECHARGE”. The company is focusing in 3 brands under its head. The café, the cold
drink and the energy drink. The paper has developed a framework for how the business will
be started and launched in the market. The SWOT analysis and the market analysis has been
done. The company is also doing analysis on the market competition to get the competitive
edge performance in the initial year. The organization has taken the product differentiation
strategy for developing the range of healthy beverage.
Ultimately the company plan has some recommendations for improving the present market
strategies to get the best out of the market and to maximize the market capitalization. The
company has focused on 3 beverages and the strategies are formed accordingly.

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Report on Business Plan for Beverage Industry
Table of Contents
Introduction................................................................................................................................3
Company Overview...................................................................................................................4
Industry Analysis and Trends.................................................................................................5
SWOT Analysis:........................................................................................................................5
Trend analysis for the upcoming industry..............................................................................6
Risk assessment......................................................................................................................7
Marketing Plan & Sales Strategy...............................................................................................8
Sales strategies...........................................................................................................................8
Operation plan............................................................................................................................9
Management and organizational Plan........................................................................................9
Technology plan.......................................................................................................................10
CSR..........................................................................................................................................10
Financial discussion.................................................................................................................11
Conclusion................................................................................................................................12
Reference..................................................................................................................................12
Appendix..................................................................................................................................14

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Report on Business Plan for Beverage Industry
Introduction
The business plan for this project is to start a new beverage company that is non-
alcoholic. The business plan is a pathway and map to construct business. The product
planning, product design and marketing plan will be designed in a business plan. The
business plan and strategies that are included in the marketing plan. The sales strategies will
be made by the management to successfully launch the product in the market. The internal
and external analysis will be done to make the company prepared for any upcoming risk.
The non-alcoholic beverage is an emerging market in USA. The increasing population
in the American country is becoming more health conscious and they prefer health drinks
over any sugar and saturated drinks. The company before launching the product will be doing
all types of market analysis the SWOT analysis will be the major part.
This report contains all the major property to understand the needs and necessity to
launch a new product in a new market. The market is obsessed with soft drinks and sugared
drinks that are now labelled as unhealthy. This product will be a fresh waves to define a
healthy market.
Company Overview
The company is for a health drink and the product is targeting the Audience who are
health conscious. So the name chosen by the Company is “RECHARGE”. This name defines
the purpose of the company. The company is directed towards creating health conscious
clients. The target market should recognize the brand just by the name. The product will
include natural ingredients. The mission statement for the company is: “Motivate the
community to promote healthy living culture by promoting healthy drinking”. The company

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Report on Business Plan for Beverage Industry
is all set to construct a brand that is recognized by its product’s properties. The marketing is
the major thing that the any new product launch needs to focus. The company is focusing on
social media marketing as the major marketing vehicle. The other marketing vehicles used is
covered in the project. The company is also set to make the investment in the construction of
new structure of manufacturing. The company will have a sales channel consisted of
manufacturer, whole-seller, retailer and end consumer.
Industry Analysis and Trends
Industry analysis is a tool to do assessment of the market in which the business is
existing or is planning to start. It helps in understanding market scenario. It is a basic method
of understanding the demand, supply, degree of competition, customer preference and future
prospects. It helps in understanding the organizational strength and weakness and also the
opportunities and threat that the company is facing or can face in future. There are basically
one major methods of industry analysis like SWOT Analysis. These methods evaluates the
market and gives a clear picture where does the company and its product lies in the market.
SWOT Analysis:
The SWOT Analysis is a method of analyzing the Strength, Threat, Weakness and
Opportunity of the product in the new market. To understand how will the market receive the
product. To analysis the internal and external factors.
Strength: the strength of this product is that it is targeting the group of people who are
looking for a healthy drink as a substitute for any carbonated drink. The use of strong
branding, loyal customer, and new technology will give the company a new standard in the
market.
Weakness: Being the new organization and new product the time taken for the company to
establish the product will be loss to make profit form the market. The time taken will be

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Report on Business Plan for Beverage Industry
totally proportional to the time the brand is trying to make it presence in the market. The
market at present day is flooded with many such product so to make a bold presence will take
time.
Opportunities: The opportunity is to make the market more liking for the property. The US
population is used to drinking Pepsi, Cola and these are termed as unhealthy drinks. Thus the
opportunity stands here the company will focus on their customer and try their marketing
skill here. The nutrient drink always takes time for expanding in the market.
Threat: The major threat for the company is the any factor that can affect the company and
its performance. The drinks get sold highly in the cold weather or rising price of the product
and the material cost rising.
These factors analyzed by the company needs to be taken in to the consideration to be a
successful enterprise.
Trend analysis for the upcoming industry
Trends in Beverage Industry- The present trend in the USA market is seeing a growing
market for health oriented food and drinks. The company is taking an advantage over it. The
market analysis is done to understand the trends in the beverage market (reuters.com, 2019).
The trend that can be seen is that the health conscious crow are switching their preferences
towards more healthy food and the company is all set to launch a product which will be
made out of natural product and will be contain the artificial ingredient at a very negligence
amount. Making it a best health drink for nay one (Ers.usda.gov, 2019).

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Report on Business Plan for Beverage Industry
Target market of the organization – The target market is decided than the major part is to
place and positioning the product. The target audience that will be focused will be of all age
as any age of people will feel healthy and happy after having the product (Bonnet &
Réquillart, 2013). It has been seen that the young group of people are more interested in
having the product and they like variety also the company will start a variety of product once
the major product get a perfect positioning. To attract all group of people the company will
invest in research and development in future. The company shall be targeting all class of
group as the cost of the product will be in close competition to the rivals in the market.
Market competition faced by the business- The competition faced by Soft Drink Company
are majorly by the Gatorade, Red Bull, Coca-Cola Company and PepsiCo (World Health
Organization., 2012). These are the biggest player in the soft drink market and also have huge
market under their control. This will be affecting the market capitalization of the company
and can take time for the company to establish its brand (Schudson, 2013).
Strategy for overcoming the market competition – The organization shall be planning to
take the strategies of product differentiation strategy for placing the beverage in a healthy
beverage range. This will be a useful method that will attract all age of the customers
(Hansen & Walden, 2013). This strategy will help the organization to focus on global market.
The diversification of the product in different range and producing a variety range of product
will be an added advantage.
Risk assessment
It is very important to sieve the market for the risk that can be external, internal or
natural. The risk can be many in an upcoming industry the management needs to do a proper

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Report on Business Plan for Beverage Industry
analysis to eliminate these risks. The need to identify and minimize these potential risk that
can detrimental to the industry. There can be many risk some of them are:
 Compromised quality of ingredients and materials.
 Changes in consumer tastes
 Contamination and poisoning of ingredients
 Unnecessary and unhealthy practices and processes in place
 Manhandling of product and materials and resulting damage
 Risks associated with sharing intellectual property
The main problem lies in how to manage the risk and the technology be used to effectively
manage it in time. So the upcoming company need to make proper arrangement in mitigating
the risk. Instead of depending on the traditional methodology or data the company needs to
put investment in the coming new technology.
Marketing Plan & Sales Strategy
A market plan is an outlines specifying the blueprint of the business plan where the
advertising and marketing plans are designed. It includes a process of market situation
analysis, budgets, sales, forecast and forecasting and projection of the financial statements.
The marketing plan is a technique which helps the business to understand how to best use the
resources to achieve the objective.
Sales strategies
Branding – This means that the company should establish a clear identity for its product or
for its company.
Targeting the customer- the company needs to make the best use of market demography.
How and where the product should be placed to get the most of profit.

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Report on Business Plan for Beverage Industry
Using the social media as the marketing platform- Instagram, Facebook, twitter and other
major online social media advertising platform makes it easy for the company to do
advertising. Free sample and promos- To increase the awareness of the product the best
way is to use the marketing strategy of sampling. This not only helps the company to tell the
audience that how the product is what is its taste.
These can be some of the small steps taken by all major company to start a new
business or product. The company is all the most important to formulate the strategies
according to the business plan.
Operation plan
The operation plan of the startup business includes day to day information about
business activities. The company needs to invest in machines and raw material. The company
needs to purchase a place to start the factory to manufacture the drink. The company is
investing in location, small shops and machineries.
The production is all dependent on the demand factor. The major operation is the
method of raw material procurement, preserving and transporting. The company will be
designing the whole procedure and will be putting equipment’s and other facilities
accordingly (Hopp & Greene, 2018). The product and the service given by the company is a
methodology which is followed by all the organization for a successful business.
Management and organizational Plan
The management team is considered as the essential requirement of a business plan.
This business plan of company includes different management personalities like the CEO,
general manager, assistant manager and labor.

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Report on Business Plan for Beverage Industry
CEO- the company will require a head who shall be taking the major decisions and will be
making all the plans for the company.
General Manager- The manager has the major responsibility of taking care of the operation
in the manufacturing, marketing and sale operational department thus the major responsibility
is of the manager. They have to assist the seniors and supervise the juniors (Gabler,
Panagopoulos, Vlachos & Rapp, 2017).
Assistant manager- The assistant manager has the major responsibility to look after the
work of the assigned task. There are number of assistant manager in an organization. The
majority of them have different work profile. Which dependent on the department they are
allocated (Chambers & Humble, 2017).
Operation Manager- The organization offers the fastest and the tastiest beverage. Therefore,
for monitoring the activities, the operational manager plays unique role and responsibility.
Technology plan
The company is totally technology oriented and has taken the technology as their
major objective. They are focusing to minimize the use of manual work and putting the work
load on the new machines. The company has made plans to opt for online delivery option in
the initial period of launching of the period. The IT system will be made robust to not lag in
any delivery manufacturing or return work. The tracking of the order that they have sent to
different outlets for sale. The company will enable a ERP system which shall have all the
new technological developments (Ross & Byrd, 2015).
CSR
Ethics is an important and integral part of social responsibility. Corporate social
responsibility (CSR) is a responsibility of the business towards the society and also towards

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Report on Business Plan for Beverage Industry
the environment. Ethical activity that deals with the ethical behavior of the organization.
Being a food and beverage industry the CSR activity is an important factor. The company
should give proper details of all the ingredients used to prepare the food and the date of
manufacturing. If the company misses on the CSR part and ethical manufacturing than it may
face long term damage to the brand name. The CSR can be Social Engagement, safe
environment, Relations with the employees and consumer and ethical methods of business
doing. The most common CSR activities done by major companies which this company also
follow in time when become strong in the market. Like Contributing to the society by helping
the poor with leftover food and beverage.
Financial discussion
As the business is going launch on large scale the amount spent and invested is in
million and the following discussion is on the investment done by the organization from
launch of the product to market capitalization. The estimate is done for 12 months.
Analysis
The beginning is done by estimating the office expenditure which consist of Supplies,
rent/lease, Equipment, fees, equipment. The amount is decreasing over the period of time.
The investment done in these items are done for once in a year. Like equipment, fees and
legal charges are paid once a year. The total cost for the year end come to be around $194 mn
this is the initial investment. The company has to make a capital structure how it will be able
to finance it.
The personal Expense is all about the salary, benefits and tax for the employees. The
amount is increasing month on month that is all because the company is expanding and
including new employees thus the company is facing a rise in expenditure the total
expenditure comes to $211mn.

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Report on Business Plan for Beverage Industry
The major portion of the cost is for advertisement and marketing the research,
branding, press release, internet marketing and promotion are involved. The total cost comes
to $380mn. That is the expenditure in the first year. The company is all set to launch it new
product thus the cost is all about the product placement.
Other expense the company focused on customer acquisition, and other general
expense. That comes to a total of $445mn. That is very high but that will be an important part
for the initial few years. The company can cut cost and manage the expense once the product
is properly placed in the market.
Conclusion
The launching, placing and positioning of the product and branding of the company is
a matter of important factor. The market analysis and strategies are done in accordance to the
product. The marketing plan, sales strategies and the branding shall be the major part of the
product launch. This shall be a successful start up for the company and will see a major
breakthrough in the coming beverage industry. With the financial analysis it can be stated
that the company is investing a huge amount into the project. The company has done a proper
market research that can bear a good amount profit to the organization.

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Reference
Ayob, A. H., & Dana, L. P. (2017). Product Strategies for Export Ventures: An Empirical
Investigation among SMEs in an Emerging Economy. Jurnal Pengurusan (UKM
Journal of Management), 50.
Bea.gov. (2019). Gross Domestic Product, 3rd quarter 2018 (advance estimate) | U.S. Bureau
of Economic Analysis (BEA). Retrieved from https://www.bea.gov/news/2018/gross-
domestic-product-3rd-quarter-2018-advance-estimate
Blackwell, E. (2017). How to prepare a business plan: your guide to creating an excellent
strategy, forecasting your finances and producing a persuasive plan. Kogan Page
Publishers.
Bonnet, C., & Réquillart, V. (2013). Tax incidence with strategic firms in the soft drink
market. Journal of Public Economics, 106, 77-88.
Chambers, I., & Humble, J. (2017). Plan for the planet: a business plan for a sustainable
world. Routledge.
Dey, G. (2018). Non-dairy Probiotic Foods: Innovations and Market Trends. In Innovations
in Technologies for Fermented Food and Beverage Industries (pp. 159-173).
Springer, Cham.
Ers.usda.gov (2019). USDA ERS - Dairy Data. [online] Ers.usda.gov. Available at:
https://www.ers.usda.gov/data-products/dairy-data/ [Accessed 20 Feb. 2019].

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Hansen, J. M., & Walden, E. (2013). The role of restrictiveness of use in determining ethical
and legal awareness of unauthorized file sharing. Journal of the Association for
Information Systems, 14(9), 521-549.
McKeever, M. (2016). How to write a business plan. Nolo.
Phadermrod, B., Crowder, R. M., & Wills, G. B. (2019). Importance-performance analysis
based SWOT analysis. International Journal of Information Management, 44, 194-
203.
reuters.com. (2019). U.S. soda sales drops for 12th straight year: trade publication. Retrieved
from https://www.reuters.com/article/us-soda-sales-study/u-s-soda-sales-drops-for-
12th-straight-year-trade-publication-idUSKBN17L2HN
Rey, C., & Bastons, M. (2018). Three dimensions of effective mission implementation. Long
Range Planning, 51(4), 580-585.
Ross, L. W., & Byrd, K. (2015). Business Plan Competitions: Start-Up'Idols' and Their
Twenty-First Century Launch Pads.
Schudson, M. (2013). Advertising, the uneasy persuasion (RLE Advertising): Its dubious
impact on American society. Routledge.
Trihatmoko, R. A. (2018). Structure of Channel Management and Agency Theory:
Relationship Marketing Approach for Fast Moving Consumer Goods (FMCG)
Business (Doctoral dissertation, Andalas University).
Wynne, H. S. (2016). 4 Wynnes Boating Manufacturing Company: A Market Analysis and
Business Plan for Northwest Arkansas.

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Appendix
Calculation 1.
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Year end total
5.6 4 1 1.5 1 1 1 1 2 3 3 3.5
2 2 2 2 2 2 2 2 2 2 2 2
7 0 0 0.5 0 0 0 0 0 0 0 0
0.4 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0.5
2 0 0 0 0 0 0 0 0 0 0 0
12 8 8 9 10 11 11 13 12 12 14 12
$29 $14 $11 $13 $13 $14 $14 $16 $16 $17 $19 $18 $194
5 5 5 5 5 5 5 5 5 5 5 5
1 1 1 1 1 1 1 1 1 1 1 1
4 4 4 4 4 4 4 4 4 4 4 4
2 4 5 5 6 7 9 9 8 10 12 14
$12 $14 $15 $15 $16 $17 $19 $19 $18 $20 $22 $24 $211
2 1 2 2 3 1 1 1 3 2 1 1
1 2 2 1 2 1 2 3 1 4 2 1
$3 $3 $4 $3 $5 $2 $3 $4 $4 $6 $3 $2 $42
6 4.5 4 4 3 3.5 3.7 3 2.5 2 2 2.7
5.5 5.5 5 5.4 4 4.5 4.7 5 4 3 3.7 2
6 6.2 5.9 5.5 5.4 5 5 4.7 5 4.9 4 3
4 4.5 4 3.7 3.4 3 3 3.5 3 2.7 2.5 2
2 2.5 2 2.3 2.1 2 2 1.9 1.8 1 1.6 1
3 3.4 3 2.9 2.8 2.4 2.5 2 1.9 1.6 1.5 1.3
3.7 3.5 3.2 3 2.9 2.7 2.4 2 2.1 2.3 2 2
4 4 3.8 3.2 3.5 3.6 2 2.5 2.7 2 2.1 1.9
7 6 6.5 6.8 6.3 6.2 5 5.4 4.7 4.9 5 5
$41 $40 $37 $37 $33 $33 $30 $30 $28 $24 $24 $21 $380
3 3 3 3 3 3 3 3 3 3 3 3
5.5 5.2 5 4.9 4.7 4.4 4 3.4 3.6 3.8 3.7 3.5
5 4.8 4.6 4.8 4 4.7 4 3.5 3 3 2.7 2
$14 $13 $13 $13 $12 $12 $11 $10 $10 $10 $9 $9 $134
5.2 5 4.8 4.5 4.4 4.4 4.2 4 3.9 3.7 3 2.5
7 6.5 6.4 6.3 6.25 6 5.9 5.6 5.8 5 4.7 4
$12 $12 $11 $11 $11 $10 $10 $10 $10 $9 $8 $7 $119
2.5 2.5 2.3 2 1.7 1.9 1.8 1.2 1.7 1.5 1.5 1
5 4.9 4.7 4.5 4 4.3 4.2 4 3.9 3.7 3.4 3
7.2 7 6.7 6.6 6.1 6.2 6 5.9 5.6 5.4 5.4 5
5.2 5 4.5 4 4.1 4.2 3.9 3.4 3.8 3.6 3.2 3
$20 $19 $18 $17 $16 $17 $16 $15 $15 $14 $14 $12 $192
$1,078
Salaries, wages
Benefits
Payrol taxes
Commission and bonuses
Personnel
Supplies
rent/Lease payment
Equipment
Business licence/ Lease/ fee
professional service / accounting, legal.
furniture and fixture
cash in hand
Office expenditure total
Office expenditure
Personnel total
Primary research
secondary research
marketing communication total
market research total
branding
advertising
web sites
direct marketing
internet marketing
press release
public relations
analyst relations
events
other total
market research
marketing communicatons
channels
customer acquisition relation CAR
other
lead generation
customer loyality
CAR total
postage
telephone
channel communication and training
channel promotion and incentives
channel commission and bonuses
channel total
$84$87$89$91
ANNUAL MARKETING BUDGET PLAN (in US$ million)
TOTAL MARKETING BUDGET $102 $101 $98 $93$95 $74$80$83
travel
computers and offi ce equipment