Business Plan for ASDA's Organic Energy Drink Launch

This report presents a comprehensive business plan for ASDA, focusing on the launch of a new organic energy drink. It begins with an introduction outlining the report's purpose and scope, followed by a detailed description of the proposed product, emphasizing its innovative organic ingredients and unique selling propositions, including trademark and registered design. The report identifies the target customer base, segmentation, targeting, and positioning (STP) strategies, and analyzes key competitors and their market shares. It then delves into Porter's Five Forces to assess the competitive landscape and provides an industry analysis covering political, economic, social, technological, legal, and environmental factors. A skills analysis highlights necessary competencies for the business's success. The report includes projected profit and loss accounts, cash flow forecasts, and break-even analysis, along with an evaluation of potential funding sources. The plan also outlines resource acquisition strategies, the type of organization, and the management information systems required. Finally, it articulates a vision for the business, draws conclusions, and provides references and appendices, offering a complete overview of the business plan.

BUSINESS PLAN

 Introduction
 Proposed future business
 Customers
 Competitors
 Skills analysis
 Projected 2 year profit and loss account and proposed 2 years cash flow forecasts including break-even
 Finding, evaluating and selecting suitable sources of funding to grow the business
 Opportunity
 Plans for obtaining resources
 Type of organization and the management information systems required to effectively control the business
 Vision for the business idea
 Conclusion
 References
 Appendix
Table of contents

 The purpose of this report is to carry out a business plan with the purpose of introducing
the new product in the market.
 In this report, ASDA is taken as an organization which is introducing new product in the
market.
 This report presents the proposed business plan which includes complete description
about the product in terms of innovation.
 It also covers the STP and USP of the products and the market position of the business
and the key competitors of its by analysing the industry.
 It also includes the skills required for implementing business idea into action along with
the projected profit and Loss account and cash flow projections and the difference
sources of funding available.
INTRODUCTION

 Product and Service
 Asda is looking to launch a new energy drink product in the market but their will be the touch of
organic ingredient and organic flavour in it.
 Asda will be giving different flower fragrant taste and will use the same to make the product
organic.
 At the same time Asda will also try to fix the combination of organic product with the carbohydrate
in it, as there is good preference of carbohydrate drink in market.
 What does it do?
 Asda will be procuring the new machinery in the organization and will conduct the market research
to understand the need of the customer and on the basis of the same different product will be made
in the organization, so that different product of the company is able to attract the eye of the
customer toward the company.
PROPOSED FUTURE BUSINESS

 Innovation it bring
 This idea will bring good amount of the innovation in the market, as it has been
identified that there is good demand of organic product in the market and there is no
such energy who are organic in the nature.
 Another innovative aspect of this idea is that with the help of this idea organization
will able to produce the energy drink at lower rate as compare to the other in market.
 Intellectual Property
 There are two type of the Intellectual property right which will be implemented to
safeguard this product of the company.
 Trademark: This Intellectual property right in the organization will be used to
safeguard the product name and logo of the product from the competitor in the
market.
 Registered Design: It is another Intellectual property right in which the organization
will be safeguarding the appearance of the product like colour and pattern to be used
by the others.
CONTINUE

 Target Customer
 Target customer of the company will be B2C, company will be looking to
sell the product of the company to the consumer who are athletics. Also,
company will be looking to target teen customer of the age 16-30 to sell the
product. As demand is high in this section customer.
 Who will buy product
 Generally the employee who are suffering from any health issue but having
good addiction to energy drink will buy the product. Also, consumer who
are more toward sports sector will look to buy the product of the company.
 USP
 Unique selling proportion of the product will be organic ingredient which
will be used in manufacturing of the product in the market. Also, price of
the product will be to low to attract the eye of the customer.
CUSTOMER

 Customer need meet
 This product will help the company in meeting
the need of customer in aspect of their need of
the product in context of product which do not
impact their health, as there is good need of
organic product in the market.
 STP
 Segment: Different segment will be made on the
basis of age and on the basis of their relation
with any sports activity
 Target: Asda will be targeting the segment which
belong to the age group of 16-30 years and more
toward sports.
 Position: Product of the company will be position
in front of the two marketing platform that is
local with the help of newspaper and radio and
social media platform in the organization.
CONTINUE

Key competitors and market share
Why customer prefer the product
 Customers will prefer the product because of its unique selling proposition.
 The product is made up of organic ingredients along the lower price strategy of the
company.
 Also, no other competitors has come up with such a unique and organic drink product at
such prices.
COMPETITORS
Competitors Market share
Tesco 27.3%
Sainsburys 15.8%
Morrisons 10.3%
Aldi 7.9%
Waitrose 5%

Porter’s five forces
 Bargaining power of suppliers
 Asda, being the third greatest general store chain in the UK has a consistent continuous
rivalry against similar organizations such as Sainsbury's, Tesco, Lidl, Morrisons and so
on.
 Since there is such an enormous rivalry, the Suppliers to these grocery store chains have
a greater power as they are all fighting to get to the top of the market.
 Bargaining power of buyers
 Buyers tend to have more power on a general scale as there is so many supermarkets
they can go to. However, in Asda's case they have already lowered their prices to keep
these customers, meaning less power goes to them.
 Averaging 18 Million customers, Asda have clearly noticed the amount of power
consumers have in this market.
CONTINUE

 Industry analysis
CONTINUE
Political
 Impact of Brexit and
prolonged uncertainty
 FDI restriction in
certain countries
Economical
 Fluctuating
exchange rates
 Higher wages
Social
 Emergence of social
media platform
 Increasing single person
household
Technological
 RFID technology
 IoT in retail
 Increasing use of
digital payment
Legal
 Complying with the
data privacy
 Copyright issues
Environmental
 Reducing plastic usage
 Initiatives for sustainable
sourcing

 Skills possessed
 Communication
 Negotiation
 Marketing
 Networking
 Personnel’s required
 Financial analyst – Accounting, finance and taxation
 Business analyst – knowledge of business analysis tools, research skills, critical
thinking skills
 Marketing analyst- market research skills, statistical knowledge, interpretation skills
 Skills required in the industry
 Deep product knowledge
 Leadership skills
 Problem solving skills
 Effective communication skills
 Networking
SKILLS ANALYSIS

 The projected profit and loss account is prepared for two years.
 For evaluating the break-even point, it is being assumed that the sales price per unit is
$1.
 It can be analyzed from the table that company is required to sell 119478 units in 2018
and 111583 units in 2019.
 Thus, it can be further said that it is able to cover its cost.
Projected 2 year profit and loss account
and proposed 2 years cash flow forecasts
including break-even