Herzing University: Energy Drink Business Plan - BU695 Capstone

This business plan outlines the launch of a sugar-free and fat-free energy drink, capitalizing on the growing health-conscious consumer market. The plan includes a detailed SWOT analysis, highlighting strengths like high-quality ingredients and weaknesses such as a higher price point. The business aims to capture 5% of the market share in the first year, increasing to 10% within two years through consumer-driven product development. Financial projections estimate $450,000 in sales and a gross profit of $108,840 after one year, with a total cash inflow of $870,000. Future plans involve product innovation, including sports-specific drinks and diverse flavors to enhance customer satisfaction and market share. The plan also includes a marketing strategy to improve the market share and brand awareness. The business is intended to be sustainable and profitable in coming years. The company will bring different types of flavors of energy drinks in the market which will enhance the company’s growth as the product will be more acceptable to the mass.

Helping People Around the World Eat and Live Better

OVERVIEW
 There are large number of consumer for th energy drinks in United States
of America.
 Yet with the rising trend of the healthy lifestyle leads to the increase energy
drink market as the number of consumer has increased and the
consumption rate has also increased.
 Therefore to seek these opportunity our company wants to introduce the
sugar-free and fat-free energy drinks which promises to boost the energy of
the consumer.
 The business will explore the target customer after analysing the current
market situations and price of the product.

OBJECTIVE OF THE BUSINESS
 Maintain positivity, strong growth each year and not with standing
seasonal sales
 Increase customer satisfaction
 Boost profit margin every year by adequate percentage through
efficiency and economy of scale
 Maintain research and development budget for future development
product
 Improve brand knowledge and public attitudes towards energy drinks.

SWOT ANALYSIS
 The following SWOT analysis states the key strengths, weakness,
opportunities and threats facing from the external environment. This will
determine the framework for strategy, position and direction of the company.
 Strength includes high quality healthy ingredients and high energy with low
fat drinks. The product line will be backed by brand value of Kraft Heinz
 Weakness includes above average price and also new to this department of
the food industry
 Opportunities include increasing health concerns and diet trend
 Threat includes presence of alternatives and competitors in the market

STRATEGY TO IMPROVE THE MARKET
SHARE
 As per the forecasting of the company is concerned the company
will acquire 5% market share after a year of the launch of the
product because the product will be first to introduce fat free and
sugar free energy drinks in the market.
 As per the analysis the company may acquire around 10% of the
market share within 2 years of business. Since the strategy of the
market is consumer driven so the continuous development of the
product will able to satisfy the customer needs.
 The company will also be one of the market leaders in 10 years
time because the quality of the product and also the wide variety
of the product will help to increases the customer satisfaction.

FINANCIAL ASSESSMENT
 As per the financial forecasting, the company will have projected
sales of $450,000.
 The company may have gross profit of $108840 after one year of
doing business.
 The company will have total cash inflow of $870,000 .
 The company will have closing balance of the cash flow of
$470,040.

FUTURE PLANNING
 The company wants to innovate individual type of drinks for
individual sports. This will benefit the sustainability and
profitability of the company. It is expected to grow in coming
years.
 The company will bring different types of flavors of energy
drinks in the market which will enhance the company’s growth as
the product will be more acceptable to the mass.

Reference
Corbo, M. R., Bevilacqua, A., Petruzzi, L., Casanova, F. P., & Sinigaglia, M.
(2014). Functional beverages: the emerging side of functional foods:
commercial trends, research, and health implications. Comprehensive reviews
in food science and food safety, 13(6), 1192-1206.
Pound, C. M., Blair, B., Boctor, D. L., Casey, L. M., Critch, J. N., Farrell, C., ...
& Tomlinson, C. (2017). Energy and sports drinks in children and
adolescents. Paediatrics & child health, 22(7), 406-410.

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