Business Plan for Organic Energy Drink - Tesco

This report highlights the business plan for the new product which Tesco is looking to launch in the new market. The new product is the organic energy drink in the market.

ENTERPRISE AND
ENTREPREBEURSHIP

INTRODUCTION
 A business plan is a formal written document containing
business goals.
 Tesco plc trading as Tesco, is a British multinational
groceries and general merchandise retailer with
headquarters in Welwyn Garden City.
 This report highlights the business plan for the new
product which Tesco is looking to launch in the new
market. The new product is the organic energy drink in
the market.

MOTIVATION FOR CHOICE OF
BUSINESS
 Tesco is looking to introduce organic energy
drink in the local market of the United
Kingdom. Two main thing which has
motivated the Tesco are as follows:
 Financial Status: As Tesco is having a
very good financial position in the market
they are looking to invest some of money in
the market as a reason they were
motivated enough to choose the business.
 Market research: Tesco has conducted
the market research in which it was find out
that there is a good demand of organic
energy drink in the market which has tempt
the company to choose the business.

GENERATION OF IDEA
 For generating the idea for the organization Druker's
seven source of systematic innovation was adopted by
the organization.
 Unexpected Success: It is the first idea generation tool in
which the idea of the new thing used to come from the
basis of the failure of some of the event of the
organization.
 This was not the case in the Tesco. As Tesco energy drink
is not preferred by many in the market at the same time
Tesco is doing well in the overall market of the UK.

FEASIBILITY STUDY
 Feasibility study was conducted with the help of following
several steps
 • Preliminary analysis: Research department of the
company has conducted the market research of UK local market
and on the basis of the same it was founded that there is good
demand of the energy drink in younger youth the market and
there are many companies also.
 • Income statement: After that it was found that it will
require huge money to start the same operation in Tesco.

DETAILED OF PRODUCT AND SERVICES
TO BE OFFERED
 Tesco will be offering the organic energy drink in
the market in two different type of the packaging.
 The product which will be offered by the
company will be having the touch of organic
substitute in it.
 As company will be procuring the organic
substitute from the supplier and will try to fix the
same with the different flavour of the energy
drink.
 The reason behind the same is increasing demand
of the healthy food in the UK and also
Government of the UK used to promote the
healthy food in the UK.

POTENTIAL MARKET OPPORTUNITY
 There are many market opportunity which are
available in front of the Tesco to launch the new
organic drink in the market.
 Demand of the Product: The biggest market
opportunity in front of the Tesco is that there is a
good demand of the energy drink in the youth
section of the nation as they are loving to
consume the energy drink.
 At the same time as there is a trend in
the UK to consume more healthy food
to improve the health level in the
nation.

ATTRACTIVENESS OF THE
INDUSTRY
 Number of Competitor: It is the industry which
offered the good amount of the competition for
the organization who is entering into the market as
there are many big organization who used to run
the business from the starting stage itself.
 At the same time the positive side for the Tesco is
that there are very few company who has seen the
success in the market. Red Bull, Lucozade Energy
and Sports, boost, Monster are some of the well
known competitor of the industry.
 But out of all Red Bull and Lucozade are the two
competitor who have seen the good response. .
Company Number of people in
thousands
Red Bull 3,759
Lucozade Energy 3,453
Lucozade Sport 3,047
Boost 1,354
Monster 1,301
Other Lucozade 1,301
Rockstar 1,246
Powerade 604

VISION OF THE BUSINESS
 There are the five vision of the Tesco on the basis of
the which the organization used to work in the local
market.
 • Wanted and needed around the world
 • A growing business, full of opportunities
 • Modern, innovative and full of the idea
 • Winners locally whilst applying our skills
globally
 • Insipiring, earning trust and loyality of the
customer, our colleague and commities.

CONCLUSION
 After going through the above report it has been summarized that there is a very good market
for the Tesco to introduce the new product that is organic energy drink in the market.
 As there are variety of the market opportunity available for the Tesco and also there is a very
good demand of the product in the market.

References
 Chambers, I. and Humble, J., 2017. Plan for the planet: a business plan for a sustainable
world. Routledge.
 Datta, H., Ailawadi, K.L. and Van Heerde, H.J., 2017. How well does consumer-based
brand equity align with sales-based brand equity and marketing-mix response?. Journal of
Marketing. 81(3). pp.1-20.
 McKeever, M., 2016. How to write a business plan. Nolo.