Business Plan for Forever Healthy Juice Products

This assignment provides a comprehensive business plan for Forever Healthy Juice Products. The company aims to sell fresh juices through carts in urban areas and online platforms. The plan includes marketing strategies such as paid advertising on social media networks, promotions through Instagram and Facebook, and a home delivery service for online customers. Organizational structure is simple with limited staff managing the business activities. Technology will be used to introduce a smartphone application for online ordering. Financial projections include expected sales, production costs, operating expenses, capital expenditures, and total expenses.

Business Plan
On
Healthy Forever

Executive Summary
Healthy Forever is a business focusing on creating a healthy lifestyle for people by offering
cold pressed juices made up of fruits, vegetables and leafy greens to ensure richness in
nutrition. It has been planned to sell these products at carts near the walking paths. Head
office of the start will be located in heart of Colombo, Kotte. The primary objective of the
company to enhance the healthy lifestyle of people within the country. Accordingly, this
business plan provides the comprehensive plan that is going to be implemented by Healthy
Forever to establish its business.
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Table of Contents
Executive Summary...................................................................................................................1
1 Business plan overview......................................................................................................4
1.1 Introduction to the startup company............................................................................4
1.2 Feasibility analysis......................................................................................................4
1.3 Vision and objectives..................................................................................................4
1.4 Potential strategies.......................................................................................................5
1.4.1 Sales strategy........................................................................................................5
1.5 Financial plan..............................................................................................................5
2 Market analysis..................................................................................................................6
2.1 Assessment of market size and growth.......................................................................6
2.2 Demand forecast..........................................................................................................6
2.3 Customer segmentation...............................................................................................7
3 Competitor analysis............................................................................................................9
3.1 Profile of the competitors............................................................................................9
3.2 Competitive position of the industry and potential competitor responses..................9
4 Assessment of competitive position of “Healthy Forever”..............................................10
4.1 Positioning analysis...................................................................................................10
4.2 SWOT analysis..........................................................................................................10
4.3 Strategic option and portfolio analysis......................................................................10
5 Analysis of Business Resources.......................................................................................12
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5.1 Management analysis................................................................................................12
5.2 Marketing analysis.....................................................................................................12
5.2.1 Positioning Statement.........................................................................................12
5.2.2 Brand positioning...............................................................................................13
5.2.3 Brand personality...............................................................................................13
5.2.4 Promotion...........................................................................................................13
5.3 Operations and business value chain analysis...........................................................13
5.3.1 Company location and Facilities........................................................................13
5.3.2 Organizational structure.....................................................................................14
5.3.3 Technology.........................................................................................................14
6 References........................................................................................................................15
7 Appendices.......................................................................................................................16
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1 Business plan overview
1.1 Introduction to the startup company
New start-up of Forever Healthy will be incorporated soon as a private limited company in
Sri Lanka. The main business operations that will be undertaken by the business will be to
offer the healthy conscious people with pressed juices made up of fruits, vegetables and leafy
greens to ensure richness in nutrition. The main objective of the business is to uplift the
healthy lifestyles of the people. The owner of the entity is Lahiru Perera followed by the
directorship of Roshan Nugawatta and Rohan Perera.
1.2 Feasibility analysis
Due to variety of increased diseases among the people, many of the people have focused their
concern on promoting their health. Most of the consumer goods providing companies within
the industry have also concentrated on producing variety of goods and introducing product
extensions to promote health of the people. Accordingly, there is an increased demand for
healthy conscious food and beverages.
1.3 Vision and objectives
Forever Healthy intends to achieve its business objectives through providing better health
facilities for the people.
 Become the market leader of fruit juice industry in Sri Lanka.
 To increase profits of the company by 20% by the next years.
 Expand the number of outlets for 20, within the next two years.
 To become the exclusive brand for healthy fresh juice.
Forever Healthy has identified the market niche of people who are concerned on improving
their health. Company has decided to offer the intended product of cold pressed juices using
variety of products and services based on the customer preference. Further, is has decided on
adopting a reasonable pricing strategy to attract more healthy conscious customers. It intends
to provide a different experience to the customers as the juices do not contain water and
sugar.
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The following key success factors will enable the company to achieve the intended
objectives.
 Company’s selected outlets locations are able to attract the target market easily.
 Having good relationships with vegetable and fruits suppliers.
 Having an efficient and effective staff.
 Better customer service.
1.4 Potential strategies
1.4.1 Sales strategy
1.4.1.1 Product/service selection
Forever Healthy has identified the market niche of people who are concerned on improving
their health. Company has decided to offer the intended product of cold pressed juices using
variety of products and services based on the customer preference. Further, is has decided on
adopting a reasonable pricing strategy to attract more healthy conscious customers. It intends
to provide a different experience to the customers as the juices do not contain water and
sugar.
1.4.1.2 Pricing
Company intends to offer pressed juices at an affordable price which helps in attracting the
customers while generating the option of going into the packages of the juice cleanses at
different discounted pricing rates. Accordingly, cost plus margin pricing method has been
used in estimating the price of a juice which is amounting to Rs. 380. Under that pricing
method the rice will be determined by adding a margin of 15% to the cost of making one
juice bottle. It is still under negotiation on whether to charge different prices based on the
ingredients used.
1.5 Financial plan
Company is planning to offer the products with a 15% profit margin to cover its costs. This
profit margin has been decided based on the pricing strategies of the competitors and the
industry norms. Company’s financial policy if to retain 50% of its profits for the growth the
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company while the balance earnings will be utilized for other expenses. Company has
anticipated demand for its products for the next three years.
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2 Market analysis
2.1 Assessment of market size and growth
Due to variety of increased diseases among the people, many of the people have focused their
concern on promoting their health. People have used for instant foods and beverages due to
the time limitations and complexities in their lives. This has created opportunities to spread of
variety of diseases among the people. Most of the consumer goods providing companies
within the industry have also concentrated on producing variety of goods and introducing
product extensions to promote health of the people (Keshi, 2010). Accordingly, there is an
increased demand for healthy conscious food and beverages. This is a great opportunity for
Forever health to create a demand for its brand among the people.
Beverage industry of Sri Lanka is growing over the past year by around 20%. Within the
overall beverage industry of Sri Lanka, over 100,000 have been employed with a capital more
than Rs. 50 billion. New business opportunity will provide a promising business strategy that
will enable Forever Health to grow the business, due to the increased demand for health-
conscious food and beverages among the people. With the changing income levels and the
lifestyles of the people, their consumptions patterns have been changed to become more
health-conscious.
2.2 Demand forecast
Key decision makers on purchase of company products will the consumers. Initial target
market of the business will consist of general public in the western province, which includes
the capital city of Sri Lanka and it has a high population and sufficient locations are available
to open up the carts. According to the three-year sales forecast of the business, it is expected
to have a demand of juice bottles as 20,000, 25,000 and 30,000 respectively for the three
years as shown in the appendix 01. This demand has been forecasted based on general
information available on different sources. Further competitor information has also been
analyzed in determining the demand forecast for the product. These demand forecasts are
expected to have seasonal variations in the months of April and December due festival
seasons and in the months from June to August due to hot weather prevailing in the country.
It has been found that most of the consumers willing to have cold pressed juices under hot
weather conditions.
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2.3 Customer segmentation
Potential customers for the company have been identified under three different age groups
based on their attitudes towards being healthy. These different age groups focus on health-
conscious food and beverages based on different aspects. The concern of youth in contrast to
the old aged people on being health are different. Accordingly, Forever Health has
categorized its consumers based on different segmentation strategies as shown in the
following table 1.
Customer Type Description
Health conscious old aged adults  Location: Sri Lanka
 Sex: Both male and female
 Customer need: Old aged adults looking
to enhance their health while reducing the
current level of diseases.
 Age: 50 – 75 years
 Personal income: Over LKR 100,000 per
month
 Frequency of purchase: On a daily basis
Health conscious late teen adults  Location: Sri Lanka
 Sex: Both male and female
 Customer need: Late teen adults who
concern about their health and the
possibility of reducing future health
related problems.
 Age: 35 – 50 years
 Personal income: Over LKR 100,000 per
month
 Frequency of purchase: On daily basis
Health and fitness conscious youth  Location: Sri Lanka
 Sex: Both male and female
 Customer need: Professional and other
youth, who are willing to maintain their
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fitness and health in a good condition.
 Age: 15 – 30 years
 Personal income: Over LKR 30,000 per
month
 Frequency of purchase: On daily basis
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3 Competitor analysis
3.1 Profile of the competitors
Among the small competitors who provide fresh juice, Roots can be considered as the main
competitor for Forever Health due to its high involvement with people. Roots is popular
among people for its quality products and availability of many outlets around the country
covering a higher geographical area.
Competitor Service and unique features
Roots Roots is a popular brand for fresh juice among people within the
country. Roots has high number of outlets available at very famous
places within the country covering a huge geographical area around the
country. Further its competitive strategy has created a unique brand for
the company among the high-income earning people.
3.2 Competitive position of the industry and potential competitor responses
The customer relationships are mainly maintained through the cart operations in the walking
paths and the feedback and the comments from the social media platforms being used. It is
intended to do paid advertising and web banner marketing activities to make aware the
consumers about the company and the products along with using personal contacts to
increase the popularity. Social media provides an easy, real time and cost-effective platform
to receive the consumer feedback and suggestions. It helps in creating an effective two-way
communication between the company and consumers (Stephen, 1993). Further, it is intended
to use UBER EATS for distribution of products and the rating can be received via it also.
To enhance the market intelligence about the demand for the products of the company,
customer engagement campaigns will be utilized on social media. Through those activities,
company intends to get an understanding on the consumer perceptions, suggestions and
feedback provided by the consumers that are essential in developing the product in the future.
Further, it is intended to use the past data of competitors to identify the trends in demand for
the products.
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4 Assessment of competitive position of “Healthy Forever”
4.1 Positioning analysis
Forever Health provides people with health-conscious solutions for their health issues in
promoting their health. Company has focused on providing the consumers with variety of
selection of fruits and vegetable fresh juices at a reasonable price. The main objective of
Forever Health is to be the top brand for fresh juice within the country. The brand name has
been developed with the objective of creating insights about the main purpose of the business
of creating health-conscious life for a long period of time (Davis., 2007). This brand will
raise strong brand awareness among the people due to the strong brand name and the value
proposition provided by the company.
4.2 SWOT analysis
Strengths Weaknesses
 Low startup cost
 Ability to financial performance within
a short period due to high level of
demand
 Rising concerns on the health of people
 Inventory of the entity get spoiled
within a short period
 Lack of better safety procedures can
make the customer frustrate.
Opportunities Threats
 Required capital can be easily obtained
due to potentiality of getting better
performance.
 Ability to start partnerships with other
business sectors.
 Bad weather conditions can reduce the
availability of inventory.
4.3 Strategic option and portfolio analysis
The exclusive brand introduced by Forever Health intends to be customer-centric, health-
conscious, contemporary, refreshing and innovative. It will provide a new consumer
experience with its ultimate range of fresh juices made out of fruits and vegetables. The
distribution and selling process will be carried out as per the customer demand while
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conducting the promotions via social media. In site customers can be provided with the
product near the carts and for the online orders, home delivery service will be used.
The costs involved with those distribution strategies have been considered in preparing the
budget and the allocated budget will be enough to carry out the marketing distribution
activities effectively. The main promotional strategy of the business is paid advertising in
Social media networks and it is considered as a cost-effective strategy which only involves
the payment that should be made to the advertisement (Cheng, 2009). So that, that
promotional strategy is realistic with the allocated budget of Rs. 1 million for marketing and
sales activities and Rs. 800,000 for selling and distribution activities.
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5 Analysis of Business Resources
5.1 Management analysis
Key personnel involved with Forever healthy will mainly include the owner of the entity who
is Micheal Ruckshan Dassanayaka, two directors of the company who are Kavinga Senarath
and Sachin Perera. These key people have previous experience in running businesses and are
well qualified under relevant professional bodies. Further, Miss. Micheal Ruckshan
Dassanayaka who is the initiator of this company, has performed well in the previous
business in which she was involved and has presented developed leadership skills. Two
directors of the company are also qualified members from well renowned professional bodies
and have more than 10 years’ experience in running businesses.
Apart from the key people above mentioned, executive staff including an accountant,
business development manager, human resource executive and operations manager will be
hired to ensure effective operations of the business. These personnel are expected have
enough skills and experience in handling the business activities in their specialized areas.
Following key professional qualifications are expected to have.
Accountant - Fully or partly qualification in CIMA
Business development manager - Fully or partly qualification in SLIM
Human resource executive - Fully or partly qualification in PIM
Operations manager - Fully or partly qualification in a related degree
in logistics and operations\
5.2 Marketing analysis
5.2.1 Positioning Statement
Forever Health provides people with health-conscious solutions for their health issues in
promoting their health. Company has focused on providing the consumers with variety of
selection of fruits and vegetable fresh juices at a reasonable price.
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5.2.2 Brand positioning
The main objective of Forever Health is to be the top brand for fresh juice within the country.
The brand name has been developed with the objective of creating insights about the main
purpose of the business of creating health-conscious life for a long period of time (Davis.,
2007). This brand will raise strong brand awareness among the people due to the strong brand
name and the value proposition provided by the company.
5.2.3 Brand personality
The exclusive brand introduced by Forever Health intends to be customer-centric, health-
conscious, contemporary, refreshing and innovative. It will provide a new consumer
experience with its ultimate range of fresh juices made out of fruits and vegetables.
5.2.4 Promotion
The distribution and selling process will be carried out as per the customer demand while
conducting the promotions via social media. In site customers can be provided with the
product near the carts and for the online orders, home delivery service will be used. The costs
involved with those distribution strategies have been considered in preparing the budget and
the allocated budget will be enough to carry out the marketing distribution activities
effectively. The main promotional strategy of the business is paid advertising in Social media
networks and it is considered as a cost-effective strategy which only involves the payment
that should be made to the advertisement (Cheng, 2009). So that, that promotional strategy is
realistic with the allocated budget of Rs. 1 million for marketing and sales activities and Rs.
800,000 for selling and distribution activities.
5.3 Operations and business value chain analysis
5.3.1 Company location and Facilities
The products offered by the company will be sold using carts in the areas around walking
paths located in Battaramulla, Independence square and Thalawathugoda. Those areas are
considered to be highly urbanized with healthy conscious people. Consumers can also place
the orders virtually through Instagram, Facebook and Uber Eats on the company offerings.
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Mainly Instagram and Facebook will be used to conduct the promotional and advertising
activities of Forever Healthy products and the brand. Main distribution channels of the
business consist of onsite cart offering of products for dine-in people at the locations and for
the online customers, a home delivery service will be used.
5.3.2 Organizational structure
As a startup company, currently the company will not have a complex organizational
structure. The limited number of staffs of the company will manage the business activities of
the company entrusting the competencies, skills and knowledge of the staff.
5.3.3 Technology
Company intend to use new technological platforms for its promotional and marketing
campaigns. Company will introduce a smart phone application which enable the consumers
to place online orders to purchase fresh juices from the company. Technology will enable the
company to ensure prompt service with enhanced consumer satisfaction.
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6 References
Cheng, .. L. a. C. L., 2009. The effects of consumer preferences and perceptions of Chinese
tea beverages on brand positioning strategies. British Food Journal, 111(1), pp. 80-96.
Davis., 2007. Consumer awareness and consumption pattern of food products. Journal of IMS
, 3(1).
Keshi, A., 2010. A Comparative Study on Fruit Juice, India: Institute of Management studies.
Stephen, J. H., 1993. .Understanding Brand Awareness: in NA - Advances in Consumer
Research. Association for Consumer Research, Volume 20, pp. 383-388.
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