Easy Brew: Detailed Business Plan for Home Beer Brewing Machines

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The assignment presents a comprehensive business plan for Easy Brew, a company focused on providing home beer brewing machines, targeting the New South Wales market, particularly university students and young adults. The plan includes an executive summary outlining the business idea, marketing strategies, operational plans, and financial projections. It delves into the company's background, mission, and goals, along with detailed market research and analysis of the competitive landscape. The product and target market are clearly defined, and pricing policies are established. The operational section covers legal requirements, organizational structure, equipment needs, and the production process, highlighting the use of Just-in-Time technology. The financial aspects include initial investment, funding sources, and revenue projections. The marketing strategy emphasizes both above-the-line and below-the-line promotional activities, with a focus on digital platforms to reach the target audience. The plan also addresses licensing requirements and the organizational structure, ensuring efficient operations and customer satisfaction. The business plan aims to achieve significant revenue growth within the first three years of operation by delivering high-quality products and building strong customer relationships.
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Running head: EASY BREW-BUSINESS PLAN
BUSINESS PLAN
Name of the Student:
Name of the University:
Author’s Note:
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EASY BREW- BUSINESS PLAN
Contents
EXECUTIVE SUMMARY.............................................................................................................3
1.1 BUSINESS IDEA AND GOAL............................................................................................3
1.2 MARKETING........................................................................................................................3
1.3 OPERATION.........................................................................................................................3
1.4 FINANCE..............................................................................................................................4
BACKGROUD................................................................................................................................4
1.1 MISSION STATEMENT......................................................................................................4
1.2 COMPANY HISTORY.........................................................................................................4
1.3 BUSINESS GOAL.................................................................................................................5
MARKETING.................................................................................................................................6
1.1 MARKET RESEARCH.........................................................................................................6
1.2 MARKET ANALYSIS..........................................................................................................6
1.3 PRODUCT AND TARGET MARKET.................................................................................6
1.4 PRICING POLICY................................................................................................................7
OPERATION...................................................................................................................................7
1.1 LEGAL AND LICENSING REQUIREMENT.....................................................................7
1.2 OGRANIZATIONAL STRUCTURE AND STAFFING......................................................7
1.3 EQUIPMENT REQUIRED...................................................................................................7
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EASY BREW- BUSINESS PLAN
1.4 PRODUCTION PROCESS....................................................................................................8
EXECUTIVE SUMMARY
1.1 BUSINESS IDEA AND GOAL
The machines Easy Brew will make crafting of beer delightful for customers at the
comfort of their home with latest technology. Customers can brew beer with products of the
company using in-built recipes as well as recipes and natural ingredients for brewing will be
delivered at doorstep by Easy Brew community. The machine will be targeted to the university
students and young population of New South Wales. The machine is planned to be distributed
from Sydney to Wollongong and Newcastle and other parts of New South Wales. The sales of
the machines is expected to increase by 15% every year so that revenue of 1.2 million AUD can
be obtained by third year of operation. The fine quality of products will delight customers of
New South Wales as they can brew beers at home after just one-time investment in purchasing
machines of Easy Brew.(Schaper et al 2014).
1.2 MARKETING
The Company aims to gain customers for repeat purchase by delivering quality products
to customers. The product will focus on excellent taste of beer which will attract loyal customer
base. The company will promote itself as a Youth Brand and will aim to position itself as a
brand with excitement personality. The company will make use of both Above the Line and
Below the Line promotional activities for promoting the product. The products will be promoted
in industry show of liquor, fairs and will target campus university students and youths. Online
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EASY BREW- BUSINESS PLAN
promotional strategy on digital platforms will also be used to gain a good customer base
(McKeever 2016).
1.3 OPERATION
The organization which manufactures Easy Brew will have separate divisions for the,
bottling and shipping process, production and delivery process. The manufacturing of products
will follow high quality standards and products will be equipped modern technology. The Easy
Brew machine will be available to customers online and can be ordered by mobile apps for
home delivery in Sydney. The company will deliver Easy Brew machine based on Just-In-time
technology for premium products. The company will make payment easy and safe for customers
online by building a safe digital platform (Gnauck, Hart and Pagel 2014).
1.4 FINANCE
Initial investment of 150,000 AUD will be required by Easy Brew to begin its operation.
The manufacturing will start with loans from banks, investment from friends and family and will
fund itself by angel investors and venture capitalists for expanding its operation in New South
Wales. The price of EasyBrew machines will be reduced by 12% for first 6 months so that the
Company break evens and becomes profitable. After two years, 20 % bottom-line profitability is
expected. The machines of Easy Brew are expected to achieve increase 15 % sales year on year
so that revenue at the end of third year can be expected to be 1.2 million AUD.
BACKGROUD
1.1 MISSION STATEMENT- To delight customers by delivering them high-quality beer
machines which will make the brewing process delightful for them at comfort of home.
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EASY BREW- BUSINESS PLAN
1.2 COMPANY HISTORY
The company which manufactures Easy Brew started its operation in Sydney, New South
Wales. Within 2 years of operation the Easy Brew machines have gained popularity among
customers of Sydney. Distribution of Easy Brew has been planned for expansion so that the
products can be available in all markets of New South Wales. The company has 20 people in
sales, delivery and production. The Easy Brew machines make crafting of beer at home easier by
modern technology , customers can select their recipes from RFID tags of machine, some
machines of EasyBrew are automated and in the premium range to make crafting of beer
delightful at comfort of home for customers(Watne and Hakala 2013).
1.3 BUSINESS GOAL
The business goals of Easy Brew are as follows-
1)To achieve a growth of sales revenue to 1.2 million AUD by the third year of its
operation.
2) To distribute products through online platform like company website, through websites
like Direct Shop and mobile apps.
3) To expand its distribution in popular cities of Australia like Sydney, Wollongong and
Newcastle within next five years.
4) To deliver products of high quality to customers and to remove any obstacle between
the product and customer by delivering them high quality products which can make the brewing
process easy and delightful so that customers make repeat purchase.
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EASY BREW- BUSINESS PLAN
5) To promote the products on digital platforms by making customers aware about easy
brewing at home and by building customer relationships using digital tools like data mining and
e-mail marketing and make home delivery available for customers (Leschke 2013).
MARKETING
1.1 MARKET RESEARCH
Regional producers have dominated the beer market in New South Wales and Sydney.
The company faces indirect competition from ready- made beer brands like Malt Shovel
Brewery which is a part of Lion, St Arnou, Stockade Brew Co and Pines Brewing Company.
Regional beer companies in Sydney and New South Wales have to compete with brands like
Lion, Carlton and United Breweries and Coopers Brewery. It is difficult for Easy Brew products
to promote the new concept of brewing beer at home.
1.2 MARKET ANALYSIS
New South Wales has 7.7 million populations which is almost one third of Australia’s
population. More than 5 million people live in Sydney and Wollongong and Newcastle have
three fourth of population of NSW. The state has popular universities like University of Sydney,
University of New Castle and University of New South Wales and there are 35% sales of beer in
among college campus communities. Population in the state grows because of immigration and
industry growth which can add to customer base of Easy Brew(Argent 2017).
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EASY BREW- BUSINESS PLAN
1.3 PRODUCT AND TARGET MARKET
The machine Easy Brew will make the craft of brewing easy for customers. The
machines will be equipped with computerized program for customers to create recipes of their
own. Fresh grains, yeast and hops will be delivered to customers along with machines of Easy
brew. Around 6 litres of beer can be manufactured within 2 hours using Easy Brew products.
Easy Brew will have fully automated machine called Easy Brew Pro which will be priced in
premium range. Thecompany targets two sets of customers in Sydney and New South Wales-
customers who study in Universities and young men and women in the age bracket of 25-30
living in the cities by making the product available in popular pubs and local markets(Hollensen
2015).
1.4 PRICING POLICY
The pricing will be 700 AUD for machines of Easy Brew and around 2000 AUD for
automated machines.
OPERATION
1.1 LEGAL AND LICENSING REQUIREMENT
The producers of Easy Brew must obtain license to distribute its products to customers.
Standard hours for trading will be applied to the license and the license can be applied as an
individual or corporation. Consent of Local Council will be required and if the applicant of
license is an individual, Certificate of Responsible Service of Alcohol must be provided.
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EASY BREW- BUSINESS PLAN
1.2 OGRANIZATIONAL STRUCTURE AND STAFFING
The organization structure of manufacturer of Easy Brew product will be flexible with
less hierarchy and there will be managers for the manufacturing, shipping operations, digital
marketing and sales division. The company will follow a Just-in-time technology for shipping of
beer machines. An open communication will be followed throughout the organization and all
departments will collaborate with each other for a smooth flow of information. (Russell-Jones
2014).
1.3 EQUIPMENT REQUIRED
Equipment required for manufacturing the products of Easy Brew will be gallon pot,
airlock, stopper, hydrometer jar , nylon bags(Thomas 2013).
1.4 PRODUCTION PROCESS
The production process will follow the Just-in-Time technology for certain premium
products of Easy brew for assembling of product parts.The production process will enable
customers to manufacture beer using latest technology. The premium products will be fully
automated. Customers can select recipes from RFID tags of machines of Easy Brew. The
products will brew beers with home delivered natural ingredients which will give the crafted beer
its unique color and taste(Maier 2013).
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EASY BREW- BUSINESS PLAN
REFERENCE LIST
Argent, N., 2017. Heading down to the local? Australian rural development and the evolving
spatiality of the craft beer sector. Journal of Rural Studies.
Gnauck, B., Hart, C. and Pagel, L., 2014. Blackrocks: Craft Brewing-From Hobby To Business:
Applying Strategic Management To The Small Firm. Journal of Business Case Studies
(Online), 10(2), p.103.
Hollensen, S., 2015. Marketing management: A relationship approach. Pearson Education.a
Leschke, J., 2013. Business model mapping: A new tool to encourage entrepreneurial activity
and accelerate new venture creation. Journal of Marketing Development and
Competitiveness, 7(1), pp.18-26.
Maier, T., 2013.Selected aspect of the microbreweries boom. Agris on-line Papers in Economics
and Informatics, 5(4), p.135.
McKeever, M., 2016. How to write a business plan.Nolo.
Russell-Jones, N., 2014. Business Planning Pocketbook.Management Pocketbooks.
Schaper, M.T., Volery, T., Weber, P.C. and Gibson, B., 2014. Entrepreneurship and small
business.
Thomas, D., 2013. Malting: the latest craft. Brewer & Distiller Int., London, UK.
Watne, T.A. and Hakala, H., 2013. Inventor, founder or developer?An enquiry into the passion
that drives craft breweries in Victoria, Australia. Journal of Marketing Development and
Competitiveness, 7(3), p.54.
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