Capstone Business Plan for Organic Soft Drink

Capstone Ltd is planning to introduce a new product line of soft drinks made with organic ingredients and eco-friendly packaging. The report includes a market analysis, marketing plan, manufacturing and operational plan, ownership and management plan, and more. The company's mission, vision, values, code of ethics, sustainability, and corporate social responsibilities are also discussed.

CAPSTONE

Table of Contents
INTRODUCTION...........................................................................................................................3
PART-1............................................................................................................................................3
Introduction-................................................................................................................................3
Mission, Vision, Values-..............................................................................................................3
Code of ethics of the proposed product-......................................................................................4
Sustainability and corporate social responsibilities-....................................................................5
Market Analysis-..........................................................................................................................5
PART 2............................................................................................................................................6
Marketing Plan.............................................................................................................................6
Manufacturing and operational plan............................................................................................8
Ownership and management plan................................................................................................8
Financial Plan-...........................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

Executive summary
In the first part for Capstone Ltd a business plan was drafted. It was a new type of soft drink
which will be made by using organic ingredients. For the product plan various aspects of the
business have been discussed. In the report a market analysis also carried out which discussed
various key elements like business trends, economic dynamics with respect to the product and
what are the essential needs for such introduction had been discussed.

INTRODUCTION
Business Plan is a well-articulated process in which a new idea of business gets proper
shape to get executed on the ground level (Watson, 2018.) In the report for Capstone Ltd a new
business plan will be fabricated. For the purpose mission, vision and values of the company are
getting cited and how these are aligned with new product would also be discussed. Other areas
like code of ethics, sustainability and corporate social responsibilities considerations would also
be taken into focus for the new product which is proposed. Market analysis will also be
presented in which potential investors, market size and trends, economics of the new product and
rigorous needs would be discussed.
PART-1
Introduction-
Capstone Ltd is an America based leading designer, marketer, manufacturer company. The
company is planning to introduce new product line it will be offering soft drink or other beverage
products to its customers. It would be first product of its type since totally based on organic
ingredients and with reusable or environment friendly packaging. Soft drink products will consist
number of flavours which may suit to the customers. Using eco-friendly packaging this is served.
It would be a good product since in last couple of decades the demand of beverages has grown
with a fast rate yet the industry is not working in fully fledged manner. In the nation there are
ample number of such organizations who are offering it but due to health concerns people are
taking distance which is not a good sign for the industry and its growth. It opens new window of
opportunity to intercept the industry and introduce such product which may assure people's
health concerns along with no sacrifice in the quality.
Mission, Vision, Values-
The company is already working in the market of USA. But with different set of services and
products like product development, manufacturing and marketing. Now it is time to include
something new to its portfolio because the modern market requires an organization to expand its
operations with inclusion of so the mission, vision and values of the organization which are
currently being practised by Capstone Ltd are as follows- (Souto and Rodríguez-López, 2021)
Mission- “To serve customers with legendary excellence”

Vision- “ To be the preferred organization for the customers”
Values- the values of the company are as-
It ensures fulfilment of exceed customer expectations, opening accountability at every level.
Being good stewards of out resources.
Code of ethics of the proposed product-
The company has planned to introduce soft drink products or other beverage items so can serve
its customers well, As the organization already stated in its value statement that the company is
striving to fulfil the expectations of the customers. After pandemics people are looking more
health conscious and it becomes moral or ethical duty of the company to enshrine their rights so
the social or ethical obligations can be fulfilled.
The company is already following all strong norms with this regard so can extend best services
and can comply with the ethical norms of the nation with this regard these are the code of ethics
the company is practising-
Company always ensure that the products must help in restoration of environment and also fulfil
the rights of every and each individual. Further the organization tries to provide the products
meeting all the legal requirements with maintaining pre-decided standards of products.
While conducting operations the company uses such types of process and technology which
reduces environmental crisis and also gives proper safety to the workers. One of the biggest issue
is persecution of various classes and communities (Souza, 2020)
The new product aligns with the existing code of conducts of the company. As above stated the
company is planning to introduce soft drink or some other beverages. Which will be made by
using organic ingredients and environment friendly packaging will also supplementing it.
Introduction of new product would be reducing health issues and protecting rights of every and
each individual to live their life safely. Along with it the product would also protect environment
by reducing use of plastic packages it would be offering new jobs to the people. So on this basis
it can be summarized that the new product would be aligning the codes of ethics.

Sustainability and corporate social responsibilities-
The new product of the company will be helpful to make sure its strong sustainability in the
market of USA. After the hit of pandemics the companies are facing issues of economic stability
but the performance of the organization is quite good. If it introduces Soft drink product and
other Beverages so can grab more market share which will ultimately hike its market curb. The
organization with single set of products or services are getting irrelevant in this modern form of
market where the competition is very high so by diversification of the product line company will
get advantage to reduce market risk factors and can fabricate strong sustainability (Suprapto,
2018)
Corporate Social Responsibilities have always been carried out by the organization. But by
introduction of the new product it would be easier to notch up the responsibility, as the values of
the company uphold “Opening accountability at every level”. So with this regard the company is
bound to execute the corporate social responsibilities (Patel, 2021)
Market Analysis-
The organization is already engaged in the operations so there are many of such potential
investors in the market who would like to invest for this project. In this product line it would be
first experience of the company so angel loan providers may show their interest to make
investment. The exercising investors can also show there interest since in other sectors the
company has performed well in last couple of years with its high level of efficiency, After hit of
CoVID-19 (Villanueva, 2020) the government of the nation is also providing loans to such
organization who are opening new job opportunities. Further the plan to use eco-friendly
packaging may attract social awakener and other such organization which would be promoting
funding from public.
The current market size of soft drink products and other beverages has been 253.7 billion in the
year 2016 and it is growing quickly in last couple of years. The growth is expected between 2020
and 2025 is more than 6%. This is clear evidence that the scope in this market. For the year 2022
it is expected to be around 333,902 million USD which is a great proportion of the market. The
trends of the market are also looked in favour of the industry (Masciocchi, 2020.)
The economics of the product has been good in last couple of years. For the industry the
economy has been wonderful in USA. But organizations like coca cola, Pepsi and Keuring Dr.

pepper are accounting more than 80 percent (Grit, 2019) of the market. Yet for new intruders
there is great opportunity since these organizations have not been very successful when it comes
to health issues of people so the economy of the product may help with this regard.
Needs for this product- For this product at this time the biggest need is proper marketing and
meeting quality standards. As the organization has promised to introduce such soft drink which
would be having natural or organic ingredients. If company does not use such chemicals and
other non organic ingredients then it would be very difficult to provide same taste or flavours.
For the product the biggest need is to keep the taste preferences alive with no use of such
chemicals which are hugely used by the competitors.
PART 2
Marketing Plan Pricing- Capstone using the price skimming strategy in order to introduce the news
product in market because it helps to attract customer by gradually the lowering price as
compared to competitors enter the market (Patel, 2021). This is the strategy which help
for opportunity in order to capitalize on early adopter by considering future competitors
that are already developed in the market. Distribution- The distribution strategy will use by company are indirect distribution in
order to manufacturer and sells the product directly to the wholesaler using entities and
other parties. This is also helped to requiring the warehouse in regard to store the product
by delivering process to attract the other organization. Promotion- The promotion strategy will use by Capstone are modern as well as
traditional in the modern technique it will use social media and other applications such as
website, SEO so that it helps to target large number of customer (Chernev, 2020. ). Advertisement strategies- The advertisement strategy used by company is on the basis of
newspaper and road side hoarding so that it can be easy to used for target large number of
group also on the other hand modern advertisement strategy is related to maintaining the
Instagram and Facebook to provides regular update to audience and this is also helps to
attract youngsters. Also, it will help to enhancing the social media advertisement which
help to make the product different and it attracts large number of customers.

 Sales Projection- The growth is expected between 2020 and 2025 is more than 6%. This
is clear evidence that the scope in this market. For the year 2022 it is expected to be
around 333,902 million USD which is a great proportion of the market. The trends of the
market are also looked in favour of the industry (Opresnik, 2018).
 Competitive advantage
Basis Capstone Coca-cola
Product Product offered by Capstone are
organic drink with different flavours.
Coca-cola, coke zero, flavoured
coca cola energy, sprite, Fanta
grape.
Price Price skimming strategy used by
company.
Price penetration strategy used by
organization.
Promotion More focus on modern promotion
technique ins order attracting customer.
Both traditional and modern
techniques are followed.
USP Organic drinks with fruits flavour. Soft drink
Distribution It will distribute to wholesaler Wholesaler and retailer.
 SWOT ANALYSIS
Strength-The main strengths of the company is to brand equity that will help to make global
presences of the company also it is attracted this customer who are health conscious and take
care about their health. The distribution network will help in order targeting more wholesaler.
Weakness- The weakness of the company in order to maintain the competition with coca-cola
and Pepsi, that are already be the market leader. Also, the product diversifications is
comparatively low for Capstone (Sumarwan, 2019).
Opportunity- It has the opportunity of expand the markets by diversifications of product also in
the developing country company can be easily introduced new product. Then also it can produce
packaged drinking water by having strength of company.
Threats- There are indirect competitors that offer product at low price and affect the target
market. Then raw material sourcing is the biggest threat of the company Globalization and its impact
The impact of globalization will be positive in orders to decreases the costs of
manufacturing and it helps to offer products at lower prices to the consumers (Elsayed Fayed,

2021). Also, the average costs of product are help to contribute for increasing the standard of
living. Then the consumer have the access for wider variety of goods. Globalization help to
provide innovation for the marketings plan. The current market size of soft drink products and
other beverages has been 253.7 billion in the year 2016 and it is growing quickly in last couple
of years.
Manufacturing and operational plan
 Technology consideration- Organizations will uses the digital technology in order to
develop the different skill which helps to embracing the clouds in order to store al the
information. The technology in factory will be used for operational plan for packaging,
make drinks etc (Bui, 2020). Also, it is necessary to operate all the activities by step so
that it help to give good physical characters that attracts kids and young people. The
transportation technology will use in order to make the logistic process easy. All the
graphic and internal design are managed by information technology team which will help
to manage cyber security.
 Timeline- The timeline would be for majorly 5 years in order to focus on marketing,
preparation, human resources and logistic department.
 Procedures- The procedures of the product manufacturing is related to generating the
ideas for how to make the drink that helps to attract more people also it is necessary to
screen the ideas by develop the concept of organic drink so that it will not harm anyone's
health. Then testing is very important for organic product will set the expire date
accordingly and set the road amp accordingly (Raji, 2019). Furthers, it also includes the
research about the market so that it help to identify the target customer and location.
Ownership and management plan
 Management and leadership role- The role of leader and manager are responsibility in
order to accomplish the specific goal. Then leadership is the ability for motivating the
individual and also influence them for making contribution for success of Capstone. Also,
inspiration is come from managers and leaders that help to improve the productivity of
the company. Leaders are play important role in order to become good communicator for
client, supplier, subordinates, team members etc.
 Ethical decision-making- This process is help the company in order to choose the best
alternative which help in the constant manners with ethical principles. It is also helped to

determine the unethical decision which is necessary for best alternative. This is also
necessary to take cares of cyber security which affect the company by affect the
reputation of organization.
 Skills of owners and managers- The roles of managers and owner are related to good at
decision-making which help to motivate the employees and take the decision ins orders
tos completing the task on time. Also, inspiration is come from managers and leaders
that help to improve the productivity of the company. Leaders are play important role in
order to become good communicator for client, supplier, subordinates, team members
etc. Then time management is one of the major skill that is necessary to develop and The
role of manager are responsibility in order to accomplish the specific goal. Then
leadership is the ability for motivating the individual and also influence them for making
contribution for success of Capstone (Firmansyah and Ramdhani, 2020).
 Compensation strategy- This is the strategy which help to attract employees by
providing them benefit and this benefit can be in terms of give extras wages, bonus , gifts
on occasion etc. This is help for creating the better culture of the organization. Capstone
will use this strategy in order to provide employees holiday that is beneficial for them.
Also, those who are doing the extras work is necessary to give them non monetary
compensation which is related to share some positive words with them and offer open
meetings which help to give the chance of sharing thought with others.
 Team diversity- This is important to having the team diversity in order to perform better
and improve the productivity this is also helped for providing expertises, experience,
working method at the workplace diversity which also helps to offer problem solving
capacity by leading greater productivity.
 HR and legal considerations(patent & copyright)- The copyright and patent of the
company secures intellectual creations which is important for the company by secure
regarding branding under tall the products and services. Then HR consideration is related
to something which is contract and crucial for signing both the party for sign the contract
at first place (Elsayed Fayed, 2021). This is also related tos the employees consideration,
stock consideration etc.
 Risk- Financial risk can be suffered by company in order to take long time for the getting
loan. In order to mitigate the risk it will help join the angle investors. The other risk can

be related to operational risks that will be maintained in order to full-fill all the demand
of productions department.
Financial Plan-
Finance plan for Capstone Ltd-(Figures in Dollars)
Cost Items Months Cost per month One time cost Total cost
Row material(Organic
ingredients)
12 1,00,000 12,00,000
Employee salary 12 1,25,000 15,00,000
Registration charges 5,000
Preliminary cost 15,000
Cost of market research 12,000
Wages 12 75,000 9,00,000
Installation of machinery
and plant
6,00,000
Machinery installation
charges
20,000
Employee welfare
expenditures
12 5,000 60,000
Packaging expenditures 12 15,000 1,80,000
Distribution expenses 12 20,000 2,40,000
Marketing expenditures 1,50,000
Interest expenditures 12 50,000 6,00,000
Other expenditures 12 50,000 6,00,000
CONCLUSION
From the report above it can be concluded that business plan is an essential tool for an
organization who is planing for the organization wants to make entry with new product or
services. In the report for Capstone Ltd a business plan had been fabricated in which a new type

of soft drink was proposed. For this purpose a brief description of the product was presented and
at the end of the report a market analysis has been carried out considering areas like potential
investors, market size and trends of the product, economics and requirements for such
introduction were discussed.

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