Report: Stereo Energy Drink Business Plan for UK Market Launch

This report details a comprehensive business plan for launching Stereo Energy Drink in the UK market. It begins with an introduction outlining the business plan's components, including organizational goals, market analysis, and financial considerations. The main body covers Stereo's launch strategy, vision, and mission, followed by an analysis of the micro and macro environments using SWOT and PESTLE analyses. The report evaluates competitor analysis using Porter's Five Forces, segmentation, targeting, and positioning strategies, and discusses marketing strategies including product, place, price, and promotion. It also explores market growth strategies, such as Ansoff's Growth Matrix, and addresses resource requirements, finance collection, and risk analysis, concluding with references to support the analysis.

Business Plan

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................1

INTRODUCTION
A business plan is a set of formal documents which comprise with organizational goals,
methods and processor to attained them at a particular per-planned time period to achieve that
goal. The business plan involve combination of organization form, market investigation, the
product ans services of the organization and there financial availability. This report is based on
lunching business plan Stereo energy drink which is having their products related to beverage
industry (McKenzie and Sansone, 2017). The report will evaluate the explanation of lunching the
product and its vision and targeted customers than will evaluate the intrinsic and extrinsic
analysis of the future brand it will also explain the competitors analysis and their advantage
towards the stereo further it will evaluate the segmentation analysis, product marketing
strategies, stereo growth plan, resource which are required in collecting finance and the stereo
risk analysis and way of dealing with them (McKeever, 2016).
MAIN BODY
Stereo launching and its vision,mission
As in Great Britain peoples are using the energy beverages comparatively more than
normal drinks in the market which consist of sugar and lots of calories. The market also have
fewer competitors in respect with other nations. Business plan to lunch a stereo energy drink is
very well in the market of Britain as people are willing to consume the new brand products.
Stereo energy drink will launch in three different flavours so that customers will get the preferred
choice according to the taste and preference (Stasevich and et. al., 2020).
Stereo energy drink is having its vision which is preplanned which is dedicated towards
the long-term goals of Stereo and its products. In vision Stereo is hoping to go to the prescribed
long-term goal. Its mission is to cover all the customers of the area in which the Stereo is
producing the beverages product and also reach the international customers specially youngest
because they preferred to be fit so, they consume this product more than elders of different
nations. As the Stereo will have less comparative in the market its vision is so clear according to
that.

Analysis of micro-macro environment
SWOT analysis of Stereo energy drink
SWOT stands for (Strength, weakness, opportunities and threats) with the help of SWOT
analysis the Stereo will know the strength, opportunities for the organization as well as weakness
and threat for the company as Stereo is new in market and there are some well-established brands
who have maximum potential customers in the market (Akter, 2019).
Strength
 Stereo have there unique style and the
unique ingredients in their products.
 The company have the vision and
mission preplanned to deal with
different situation while running the
business activities.
 There brand recognition is very easy
for the customers and identification
becomes easy for the customers.
 Stereo have the sport- based and
youngster marketing strategy will clear
the vision to concentrate.
Weakness
 Stereo energy drink is launching only
few ranges of products so if the
individual customers not get enough
choice to consume of the products of
the Stereo.
 As the Stereo is will launch fully new
so in the beginning they will offer a
less price than others it will lead to low
profit rate.
 As the Stereo will be fresh, so they
have less budget to do there marketing
practises, so they will not reach the
desired customers.
Opportunities
 As Stereo enrgy drink have the fewer
rivals in their product range, so they
can reach more customers with the
quality and affordable pricing.
 With the help of ICT the organization
will reach and attract more customer in
the international market.
 The production process will also give
opportunity to Stereo as they will use a
Threats
Stereo energy drink corporation have to face
different competitors in the market who are
well- organized in the beverage sector of
industry.
The organization is not having the relevant
knowledge of the market and Stereo will take
time to know the strategy for the Britain
market.

efficient method of production
PESTLE analysis of Stereo energy drink
With the help of PESTLE analysis Stereo will get to know who the extrinsic factor affect
the organization from outside and there is no control over it (Bertozzi, Ali and Gul, 2016).
Political factors: Stereo have to look the government rules and regulation and the corruption in
the operational market as well. As they will affect the sell of Stereo energy drink.
Economic factors: The economic condition will ultimately affect the production and sell cycle of
upcoming Stereo organization. If the Setreo enter the market it the time of inflation than they
production cost will be high and the customer also have to pay more.
Social factors: Stereo have to inspect the preference of the target customers like there status of
living and the income for prefer the product.
Technological factors: If the Stereo will not research and develop the technology then there sell
will affected.
Legal factors: Stereo have to look out all the laws and regulation which are setted for the fresh
organization in beverages.
Environment factors: In this factor Setreo factor have to use the environment friendly technique
to produce the products and services.
Competitor analysis
Competitor analysis is an assessment of various weaknesses and strengths of potential
and current competitors who can any- day come up with the strategies which can lead to harm in
the position of the business. This could be understood better with
Porter five force analysis
Competition in the industry- it the first of five forces that refers to the number of rivalries for
the company and their ability to harm the business operations of the company. The larger the
number of rivalries, with various equivalent goods and services they offer, lessor will be the
power of company.
Potential of new entrant in industry – The power of the company is being also affected by
forces of new entry in the marketplace where the less money and time it cost to its rivalries to
enter into market of company, more the established position come down to be weaker.

Power of Suppliers – it states that suppliers can drive up various cost of inputs in marketplace.
It is being affected by various suppliers to the key inputs of various energy drinks products
launched by the company, which states that fewer the supplier, more the company dependence
on the same as a result will account to supplier power to have added advantage to increase price
and vice versa (Almeida, Santos, 2020).
Power of the customer- it refers to the ability of the customer have the power to drive prices
lower where it is being stated as the powerful and smaller the customer base means customer
having high power to negotiate prices and better deals and vice versa.
Threat of substitutes – it states that substitute products can serves as the means for the threat of
the company where the company that produces products with no close substitutes will account to
have more power to increase prices and have favourable business operations (Mon,2020) .
The competitive advantage for the Stereo will account to providing high quality energy
drinks with different flavours at the prices which are being affordable to its target customer
which will serve as the base for the company in surviving in the various business dynamic and
support various challenging task.
Segmentation, targeting and positioning
The company accounts with various segments in for its target audiences such as
demographics which is being based on combination of gender, age, education, income and
various others. It segmentation also accounts with psycho-graphics that refers to the emotions
and personality which is being linked with the behaviour, choices of the purchase, lifestyle,
hobbies, personality and various others where the company gathers such information by taking
feedbacks, surveys which helps the company in knowing what is being actually needed by the
customer(Wang,2019). The company also account with geographical segmentation whereby the
company accounts to develop strategies which regards with availability of its products and
services across majority of the countries of Europe that helps the company in generating high
rate of profits and helps in boosting the sales for the company. The size of energy market in UK
according to recent data accounts with over 2 billion euro (UK Energy Drink Statistics2018).
The company target market is between the age group of 18- 35 years who are college
going students, working professional with special focus on male, sports enthusiast, fitness freak,
gym going youngster with the normal income as company energy products pricing strategy is so
well designed which is being affordable for all classes of segments as the company targets the

same because this age groups are more concerned in boosting up there immunity where the
company has designed various energy drink products which accounts to serving the needs of its
target segments (Wuryandani, Ismoyowati, Nugrahini, 2018). The company target this by
spreading awareness of its products on various social media platforms which serves the company
with the means of reaching to the end customers easily with less time and less cost which helps
in attracting large customer base.
The company position itself and create a positive image in the mind of its target audience
by providing quality products of energy drinks to its customers at a price which are being lower
than that of its competitors and rivalries, company adopt to position itself in marketplace by
adopting to robust marketing strategy which is being focused on identifying needs and wants of
the customers and serving with the products which helps in driving there satisfaction level.
Marketing streatgy of Stereo energy drink
As Stereo will go to be a beverage industry so the industries of beverage are comparative
high lucrative surrounding market as compared to others. Stereo energy drink will focus to
capitalize towards there opportunities which are there to build there market leaders. The
marketing strategy that Stereo will apply in this business:
Product
Stereo energy drink will pause the innovative plan to aim in the reaching the immediate
customers wants. As aiming to immediate consumer will change the feeling of customers as they
are getting the desired product as Covid have change the behaviour of customer towards the
preference of product.
Place
Rise in the online market and online retailing of the product have increase the
consumption of the commodities earlier customer feel hurdles in consumption online nut now it
is more prevalent than walk in consumption of products and services.
Price
The pricing of Stereo products will generally fixed after inspection of the market. Stereo
will low down the price for offering the customer to promote the products so that the fresh
customer get the reason to consume the products of Stereo rather than using the competitors
products. This will help to capture a better share in the market of Britain as well as globally.

Promotion
Stereo energy drink will have the focus on building a good awareness and engagement of
both online and walk in the stores. The organization used to do advertisement there product with
TV and creating website will lead to attract the fresh and new customer to Stereo energy drink
(Surtawijaya and Soegoto, 2020).
Market growth strategy
There are various market growth strategy which can be considered by the company in
order to grow and survive in highly competitive market such as
Ans off's Growth matrix- this is being also known as product and market expansion grid which
explains four stages for company to grow such as
Market penetration – this relates with increasing sales of existing and current products in the
existing marketplace whereby the company aims to increase its market share with the strategy of
market penetration which can be executed by the company in number of manners such as
decreasing prices of products to attract large number of audience and customer base, by
increasing distribution and promotion efforts to reach to the end customers easily and could also
be by the means of acquiring competitors in the same market.
Products development- this strategy relates with introducing and launching new goods in the
existing marketplace which includes company accounting to practise more typically extensive
development and research and can be with the expansion of company range of products. This
strategy is being employed by the company in situation when it has strong and thorough
understanding of there current market scenario and by which it is being able to provide
innovative solution to cater wants of existing market (Loredana, 2017).
Market development – this strategy is being focused with launching existing product in new
marketplace which can be by the means of expanding into new customer segments, new
geographic regions where this strategy is most successful where the company owns proprietary
technology which can be leveraged into new market, potential target audience is being profitable
where it accounts to have disposable income and the behaviour of the consumer in new
marketplace does not deviate much as compared with the existing one, where firm can expand its
business internationally, regionally by catering to different customer base all across.

Diversification- this strategy is the riskiest of all as it is being launching new products in entirely
new market which has related diversification where there are potential synergies between
existing business and new products and unrelated diversification where there are not potential
synergies between the two mentioned (Martins,2020).
Sources of Finance
Funds are required on the end of the company to account with day to day business
functioning and serves as support for any future contingencies where the company can raise it
through various ways such as
Debt capital or loans from banks and financial institution which serves as traditional
form of getting funds for operations of business where the banks and financial institution
provides with the loan value of company, robust business plan and with the ability of the
company to repay the loan amount back to bank with the interest being charged which helps the
company in meeting day to day business expenditure.
The company accounts to raise it funds through retained earnings whereby business of
Stereo aims to increase its profits by providing various energy drink products at a price which is
being higher that that of its cost where by company after earning profits decide how to allocate
its resources more efficiently and what it can do with the same where by company saves part of
percentage after by meeting all its criteria which helps the company in meeting with various
future requirements of the company (Egolum,Emoh, Onyejiaka, 2017).
The company accounts with raising funds through equity capital whereby company
raises funds through public in return with exchange of relevant ownership in the company which
is being in the form of issuing shares of the company who become stake or share holders after
purchasing the same. In comparison with the debt capital, equity capital is not accounted and
subject for interest payment to its borrowers which can be used by the firm in purchase of
various assets, equipments and machineries which helps in manufacturing and production of
energy drink to its target customers.

Risk analysis and there treatment of Stereo energy drink
Alert stage Risk Effect Mitigation
Insignificant When the product is
launched in the market
customer might be
dissatisfied by the
product as earlier they
are using a better
quality of product than
Stereo's products.
Stereo energy drink
potential customers
will shift their
preference to the
competitor product
because of
dissatisfaction in the
product of Stereo.
Stereo energy drink
should analysis the
market competitors
products in respect of
their quality and the
pricing of the product
so that they can
maintain there product
quality slightly better
than the other in
market.
minor There are chance of
loss of certain
percentage as the
Stereo energy drink is
new and in there start-
up capital, so they will
suffer from certain
loss in beginning.
If the Stereo energy
drink will face the loss
then there shareholder
will try to remove
there shares as the
organization is facing
the loss and not any of
the shareholder want
there investment face
any loss.
Stereo have to inspect
the market condition
on regular basis and
try not to start the
business in the
situation of inflation
because in this
situation the product
price is comparative
high and customer not
prefer to consume
them.

Medium Customer get
dissatisfied and
disappointed by the
product of Stereo
energy drink and not
want to visit and
consume the product
of Stereo energy drink.
The sell of Stereo will
affect this nature of
customers as they will
not consume the
product again and the
company again face a
high loss as Stereo
energy drink not insect
the market and
produce the low
quantity of production.
Stereo energy drink
have to produce a
premium quality of
beverage as to stand
out in the comparative
market. To attract
more customers
towards the products
they have to satisfy the
potential customers.
Major Stereo energy drink
have to face
competition has the
company is new in the
market and there are
less budgets to
promote their product
as compared to
existing companies
with large share in
market.
Stereo selling will
affect because
potential customers
will not move urgently
towards the Stereo so
the comparative
market will lead to less
sell (Aven, 2019).
Stereo energy drink
have tyo use some
unique style in the
production and the
awareness of safety of
customer this will
attract the potential
customers of
competitors company
of beverages (Kou and
et. al., 2019).
CONCLUSION
From the above report it is being understood that to launch a new business it takes several
things which business needs to consider in order to survive in highly competitive business
environment. The report has made to the understanding of the rationale of launching the
business, where it has provided clear understanding of various macro and micro factors that
affect the functioning of the business. It also highlighted to various competitive analysis and will

highlight the same with the competitive advantage. It has made to the understanding for a
business to get launched what will be its segmentation, positioning and targeting and has
highlighted with the marketing strategy by using various P's. The report has also made to the
understanding of various market growth strategy such as Ansoff growth strategy. It has
highlighted various resources which are being required which includes various sources of funds
and lastly briefed to risk analysis.

REFERENCES
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Online
UK Energy Drink Statistics.2018[Online]. Available
through<https://www.statista.com/statistics/308493/leading-brands-of-energy-drinks-
excluding-colas-or-mixers-for-alcoholic-drinks-in-the-uk>
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