Strategic Business Plan for Elite South - Non-Alcoholic Drinks

This document provides a detailed business plan for "Elite South", a non-alcoholic beverage company. It includes an executive summary, company description, industry analysis, target market, competitive analysis, strategic positioning, marketing and sales strategies, operational and technology plans, management and organization plans, an ethics and social responsibility plan, and financial projections. The plan focuses on the non-alcoholic beverage market, targeting health-conscious consumers and emphasizing product differentiation through unique flavors and delivery models. It addresses market trends, competition from major beverage companies, and potential risks. The financial section includes startup costs, profit and loss statements, cash flow statements, and balance sheets, along with an exit strategy. The plan highlights the company's commitment to providing quality products and creating a comfortable social environment for its customers.

Running head: BUSINESS PLAN
Business Plan
Name of the Student
Name of the University
Authors Note
Course ID

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Table of Contents
Executive Summary:..................................................................................................................2
Company Description:...............................................................................................................4
Industry Analysis:......................................................................................................................4
Target Market:............................................................................................................................6
Competition:...............................................................................................................................6
Strategic Position and Risk Assessment:...................................................................................7
Marketing plan and Sales Strategy:............................................................................................9
Operational plan:......................................................................................................................11
Technology plan:......................................................................................................................12
Management and organizations plan:.......................................................................................14
Ethics and Social Responsibility Plan:.....................................................................................16
The Financials..........................................................................................................................17
Start Up Cost:.......................................................................................................................18
Profit and Loss Account:......................................................................................................19
Cash Flow Statement:..........................................................................................................20
Balance Sheet:..........................................................................................................................21
References:...............................................................................................................................22

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Executive Summary:
The current business is founded on non-alcoholic beverage manufacturing. The name of the
company is “Elite South”. The chief motive for setting up this name is for the reason that the
proprietors’ purpose is to reflect dominance in respect of capability or quality. While in the
southern part of the US customers are found to be consuming more soft drink. The business
will be manufacturing non-alcoholic energy drinks for its customers. The business purposes
is to make influence to the people by offering the consumers with drink. “Elite South” is
intended to deliver its customers with products at a realistic price and form a comfortable
social atmosphere for the soft drink enthusiasts.
The management and organizations plan will be placed by the owner. Briefing the plan, Elite
South will be controlled by CEO that will be answerable for the day-to-day processes of the
business. On the other hand, the daily business decisions is considered significant by the
organisation board. The chairman will be headlining the panel and five administrators will be
heading different subdivisions of the business. The operational manager will be handling the
manufacturing program and will be answerable for constructing the end products. The
operational manager would also handle the efficiency of finished produce at the initial level
which will perhaps help in identifying the inadequacies in the structure of operational
management.
At present the non-alcoholic beverage industry is stressing on the functionality, fermented
drinks, personalisation, alcohol free alternatives and sustainability. The customer
responsiveness towards environment and their individual health as well as wellness are
measured as significant factors which dictates the prospect of liquid refreshment industry in
2020. Millennial are watched as crucial driver of these developments. As per the BCC, the
international market for fermented ingredients may grow to worth around $28.4 billion in

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2020 with a yearly growth of 3.4%. Kombucha, a fermented tea with live bacteria to help in
healthy digestion, presently stands out as having the big part in this growth with growth in
market of 13% CAGR in the North America hitting $3.5 billion by 2025.
By selecting a creative design, starting a unique service and endorsing a wellbeing and
wellness products, Elite South can discriminate its produces with the other current products
that are functioning in the market. Differentiation can be formed by forming a unique
delivery model. As root beer can be used with numerous additional constituents to improve
the taste, Elite South can with ease replace the alcoholic drinks or can be a best replacement
for the alcohol drinks.
Elite South will be financing its growth largely with the help of cash flow. The owners has
realised that this means will help the company to steadily progress further. Elite South will
emphasize on setting up adequate amount of cash reserve for contingencies. The business will
be financing its growth with the help of cash flow.
In case the business of Elite South fails, the owners will be implementing an exit strategy.
The exit strategy will be selling the business. In other words the entrepreneurs will be selling
their shares to an investor or other franchise company. The exit strategy may include
acquisition or shutting down of operations.

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Company Description:
The present business is based on non-alcoholic beverage production. The name of the
company is “Elite South”. The main reason for setting up this name is because the owners
aim to reflect superiority in respect of ability or quality. While in the southern part of the US
consumers are found to be consuming more soft drink. The business will be producing non-
alcoholic energy drinks for its consumers (Kirzner, 2015). The business aims to make
contribution to the society by providing the consumers with refreshment. “Elite South” is
designed to provide its customers with products at a reasonable price and develop a relaxed
social environment for the soft drink enthusiasts. A simultaneous employment opportunity
will be created as well for the students that are graduating.
The Elite South will not be having a perfect transition with the immediate and heavy
business in the smoothie market. There are certain factors with which the management will
be required to deal with are competition and executing the projected idea of Elite South
combined with successful advertisement to its target market.
Industry Analysis:
Presently the non-alcoholic beverage industry is emphasizing on the functionality,
fermented drinks, personalisation, alcohol free alternatives and sustainability. All these types
of trends caries certain significance which helps the non-alcoholic beverage companies to
place their focus on customers (Drucker, 2014). The consumer awareness towards
environment and their personal health as well as wellness are considered important factors
which dictates the future of beverage industry in 2020. Millennials are viewed as key driver
of these trends. The beverage companies should keep up with the cultural shift by innovating
new products, not only in respect of non-alcoholic options but also aligning it with health,
wellness and sustainability.

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In terms of functionality the beverage industry in US has witnessed an increase in the
number of new products with functional benefits (Parker, 2018). Ranging from stress-free
relievers to immune system health, customers are now seeking more from their drinks than a
mere hydration. Major beverage brands such as Coca-Cola have adopted this trend as they
have started to release vitamin water range and new energy drinks with a combination of
caffeine guarana extracts and vitamin B.
Besides this the industry has also witnessed a rise in fermented drinks. As per the
BCC, the international market for fermented ingredients may grow to worth around $28.4
billion in 2020 with a yearly growth of 3.4%. Kombucha, a fermented tea with live bacteria
to help in healthy digestion, presently stands out as having the big part in this growth with
growth in market of 13% CAGR in the North America hitting $3.5 billion by 2025 (Kuratko,
2016).
The Non-Alcoholic Beverage industry has witnessed a rising demand for the brands to
meet rising need of increasingly-difficult desire of consumes by forming a personal
experience for their audience with drinks on demand. Millennials is considered as the main
driver of the rising trend since it leads to the path of health, convenience and wellness. There
are several companies that have responded by providing plant-based beverage options (Burns,
2016). For example, Stok Cold Brew coffee is an example of brands reacting to both the
vegan and trends in the present year.
Speedy growth is witnessed in the Non-Alcoholic Industry in US. As per the research
NAB industry is anticipated to grow by 1.2% on yearly basis and a sales revenue of $245.5
billion is projected to be generated in 2020 with likely higher market growth by 2023.
Presently the average per capita soft-drink consumption stands 220.3 litres in 2020.

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Target Market:
The target market of Elite South is selling its products in the international market
which is not yet been discovered. The main reason is under such market the company will
acquire a broader market share with increase revenue and profits as well (Frese & Gielnik,
2014). The target market of Elite South will be low to middle income customers that are
aware of their health and wellness. These type customers have the desire for higher quality
beverage at moderate price. Elite South meets the required quality that is demanded by the
consumers because it would cater to the needs of larger US population.
On the basis of this information, it is projected that Elite South market can be divided
in two consumer segments. The initial segment prefers alcohol-free alternatives while the
other segments prefers probiotic-rich drinks containing a profusion of benefits when it comes
to health. Elite South drinks can be considered ideal for modern-day conscious consumers as
it does not boast any fats, no cholesterol and relatively has lower calories (Read et al., 2015).
Elite South will target segments of US customers which will range from teenager to adults.
The company will target Hispanic population with special interest because it comprises of
65% of the total population. These customers will be targeted with the blend of alcohol free
and probiotic rich drinks.
Competition:
The company will be facing strong competition following the establishment of the
company. The main reason for this is that a large number of non-alcoholic companies which
are operating internationally such as Coca-Cola, Monster and Pepsi. The marketing strategies
of this company is not very much effective as they fail to cover all niche markets which will
help in increasing the revenue (Baum et al., 2014). Elite South will be new to the business.
Competitors under this type of business mainly sells the probiotic and alcohol free drinks.

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The key to success will be definitely to focus on selling the non-alcoholic beverages and
prices will be competitive for those that are in competition.
Along with the marketing strategy which is applied by the competitors in this industry
are very much traditional that are replaced by other new modern marketing strategy by
companies operating in the industry (Kerr et al., 2014). Nevertheless, the company has
leveraged social media tools as the method of marketing its products which is successful over
the years.
As evident that Elite South will operating in market that has strong competition, it
will be facing stiff competition in expanding its products. As a result, it is important for Elite
South to introduce an effective marketing strategy (Barringer, 2015). In addition to this, on
acquiring a new company while simultaneously consumers emphasizing their taste and
preference in other types of products, the companies are anticipated to alter its marketing
strategies.
Competitors such as Jamba Juice is a large competitor which is located in the Braulio
market a local grocery store. The distance between the Elite South store and Jamba Juice
store is very close and there can be a potential loss of customers (Chernev, 2018).
Furthermore, the products of Jamba Juice are also very expensive and it appeals more to the
health of consumers that very health-conscious.
Strategic Position and Risk Assessment:
The strategic position of Elite South is slowing expanding its flavours that are
available in two years of operations. The strategic position of Elite South is to focus on its
niche market that are health/natural food stores which serves the young customers
(Aghazadeh, 2015). The business will be distributing it products from its business facility
only. Elite South will adopt a shelf-space mode to influence the audience. At present, large

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number of consumers are very much aware of the importance of health benefit and the market
for Elite South non-alcoholic beverage drink can be formed.
By selecting a creative design, forming a unique service and promoting a health and
wellness products, Elite South can differentiate its products with the other existing products
that are operating in the market. Differentiation can be formed by forming a unique delivery
model (Proctor, 2014). As root beer can be used with several other substances to improve the
taste, Elite South can with ease replace the alcoholic drinks or can be a best replacement for
the alcohol drinks.
While considering the risk involved in the present business it can be stated that the
government have certain rules and regulations.
Legislative Business Risks:
As per the government legislative norms it is important to mention regarding the
ingredients involved in making the product on the label. In order to prevent this risk, Elite
South will be adding up all its ingredients that which is used in making the products on its
label.
Environmental risks:
Presently everyone is aware regarding the protection of environment and for this
purpose certain important steps is taken by government. This involves recycling of waste
packages, environmental friendly packaging and safe disposal (Šimberová, 2014). Elite South
will be abiding by the rules of environmental risks by using the environmental friendly
packaging for recycling of its wastes.

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Health risks and consumer perception:
The risk posed to consumer is very high. In order to prevent the health risk among the
consumers, Elite South will be mentioning about the expiry date of its soft drink consumption
on the top of the product labelling (McDonald et al., 2016). The expiry date will be
mentioned in bold letters in order to make the consumer aware.
Marketing plan and Sales Strategy:
Elite South is planning for a slow growth by expanding flavours that are available for
creating a sales strategy. Elite South, overall market strategy will be develop an image of
delivering goods of highest quality soft drinks in US. The business would be located in the
high traffic area of El Centro (West et al., 2015). The potential customers would be reached
with the help of advertisement such as fliers, newspaper advertisement and all through its
grand opening ceremonies. A special type of marketing program will be implemented by
Elite South to offer special coupons price for nearby motels, restaurants, donut shop and the
gas station to customers that purchase any product at Elite South.
Sales Promotion:
Elite South would be promoting its products to consumers by following ways;
a. Distributing fliers to consumers inside the radius of five-mile
b. Newspaper form of advertisement will be purchased in the first three months of the
business until a strong base for clients is created (Ansoff et al., 2018).
c. Elite South will be offering discount to recreational groups such as adult baseball
players and football teams that play in the nearby territories.
d. Elite South will be promoting its products at an introductory price at its grand
opening.

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e. Elite South will be sponsoring a good attendance program by purchasing a bike and
raffelling the same to the teenagers for best attendance. This will be viewed as a
promotional strategy to promote business.
Distribution Strategy:
Elite South will be conducting a major marketing with the help of newspaper
advertisement and local flier distribution in the first three months of the operation. The
business anticipates a total distribution cost of $6,000 (Rothaermel, 2016). In addition to this,
Elite South will be introducing its products at a 20% off regular price in the first month. Elite
South will also co-sponsor its products to local athletic charitable events in order to raise the
visibility of its brand name.
Sales strategy:
The sales strategy of Elite South is directed towards building a customer loyalty in the
new markets. Elite South will be targeting to increase its sales force to focus on the new
market (David & David, 2016). The sales strategy of Elite South will be directly linked to the
marketing programs because all the sales will be made through the business facilities only.
During the initial stages Elite South products are planned to market among the
medium and large traders in the target regions. The delivery of goods to warehouse of Elite
South will done by company’s purchasers. Elite South will offer exponential discount to
stimulate the permanent heavy purchasers (Hill et al., 2014). In respect of marketing, it is
projected to produce a sales department, comprising of the head of sales department and sales
manager. These offers will be seeking new customers, set up the consumer base and serve
with current customers. Elite South will also be hiring a commercial director who will be
accountable for promoting the company in all types of product supply tenders and also
looking for the distributors.

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Operational plan:
Elite South is associated with the production of non-alcoholic beverage products.
Under the operational plan, as a start-up company, the owners at Elite South will first rent
and lease the business equipment’s that will be used for operational purpose and would also
lease vehicles that will be used for delivery of Elite South products. Certain equipment which
will be used in the production procedure include, refrigerators, conveyor belts and bottling
equipment (Ginter et al., 2018). These equipment will be undergo maintenance once in every
two weeks by an outsourced serving company. Nevertheless, the company will also have an
indoor employee that will be accountable to service the equipment in case it breaks down.
Quality Control:
Quality control is an important aspect of operational plan for Elite South. At Elite
South the quality control and capacity would be done on the basis of market levels. For the
purpose of quality control, Elite South will have a quality control department which will be
led by quality specialist to make sure that each product of Elite South will be of best quality
and grade (Lasserre, 2017). The capacity control as well as yearly production is anticipated to
be around 175 million litters. For the purpose of daily production it is anticipated that Elite
South will be producing 2000 litres.
Inventory Control:
Elite South will be using a FIFO method. The initial batch of production will start
dispatching it to the distributors (Hill et al., 2014). Nevertheless, if an order is placed by
customer, the turnaround time for production will be inside 24 hours.
Distribution procedure:
Elite South will distributing its products to retailers and wholesalers. Online selling
will be conducted as well. The supermarkets will be playing a greater role in distribution of