Comprehensive Business Plan: Refresh Energy Drink for FIFA World Cup

This business plan outlines the strategy for Refresh, a Singapore-based startup launching an energy and health drink at the FIFA World Cup 2018. The plan details the company's mission, objectives, and keys to success, emphasizing product quality and competitive pricing. It includes a market analysis, segmenting the target audience and outlining marketing strategies such as in-store promotions and digital advertising. The sales strategy focuses on establishing the product locally, with sales forecasts projecting revenue and profit over three years. The plan also covers web marketing, management structure, and personnel plans, alongside a financial plan with profit and loss statements. The plan highlights the competitive landscape, identifying key competitors like Extra Joss and Hemaviton, and emphasizes the need for Refresh to gain a competitive edge through superior product quality and strategic marketing efforts. The company aims to attract a wide range of customers, focusing on the sports and fitness market, and plans to expand internationally after establishing a strong local presence. The financial plan includes funding from owners and Deutsche Bank, along with projected costs, revenues, and margins, providing a comprehensive overview of the business's financial viability.

Running head: BUSINESS PLAN
Business Plan
Name of the student:
Name of the university:
Author note

1BUSINESS PLAN
Executive summary
This business plan has focused on the start- up company Refresh which will sell energy booster
and health drink. It will make the product introduction at the FIFA world Cup 2018. Apart from
the owners, Andy and Sam the Deustche bank has also invested for the opening of the company.
This plan has explained the strategies of marketing and promotion along with the expected
financial structure.

2BUSINESS PLAN
1. Company Summary
About
Refresh Company will be based in Singapore and they will sell energy booster and health
drink. They are going to introduce their product in the market during FIFA World Cup 2018,
which is going to be held in Russia. This business will be owned by the two partners Andy and
Sam who have invested $20,000 and $15,000 respectively.
Mission
This company will be offering one of the most energetic health drinks for the
sportsperson. The key mission of the company is that it will provide the sportsperson with the
best experience during their match with a reviving bottle of cool drink. The company wants to
top the list among all other sellers of health drink and energy boosters.
Objectives
The major objectives of the company for the first three years of operation will be:
 The cost of the product will be kept within 35% of the total revenue.
 The cost of laborers will be within 2% of the revenue.
 The company will not try to expand out of Singapore in order to provide the best quality
products in its initial period.
 The company will sell 10,000 per unit of energy booster at an average price of $10 and
7000 units of health drink at $12.

3BUSINESS PLAN
Keys to success
The company will adopt certain start- up strategies in order to experience success in the
competitive market:
 The quality of energy booster and health drink will be superior to others and contain
natural ingredients.
 The products will be available at all the small and big stores and the retailers can get it
from the company suppliers.
 The company will provide free sample of products to the winning team of the FIFA
World Cup 2018.
 It will try to have a strict control over the costs so that they can gain profit.
Summary Statement
Sources of Capital
Owners' and Other Investments
$
35,000
Bank Loans 150,000
Other Loans -
Total Source of Funds
$
185,000
Startup Expenses
Bldgs / Real Estate
$
60,000
Leasehold Improvements 5,000
Capital Equipment 80,000
Location / Admin Expenses 20,000
Opening Inventory -
Advertising / Promo Expenses 15,000
Other Expenses -

4BUSINESS PLAN
Total Startup Expenses
$
180,000
2. Product summary
Pricing and profitability
The expected gross margin per product in one year is expected to be 25% each for energy
booster and health drink. It is expected that the annual cost of goods sold per product will be
$25000 for energy booster and $21000 for health drink. Moreover, it is expected that 2% factor
is required on annual maintenance, overhaul and repair at 30% annual tax rate. The prices will be
set according to the competitive manner so that the product can gain a competitive advantage
over the existing rival companies in the market. The pricing will be arranged in such a way that
the company will be able to reach the break- even point at the end of 2.75 years. In addition to
the investment of the two partners, Deutsche Bank will provide a loan of $150,000.
3. Market analysis
Market segmentation
The company will try to attract a wide range of customers by offering a healthy bottle of
energy booster. The sportsperson will be relaxed and comfortable by gulping this energy drink
while playing the tiresome game. The product will not only target the footballers but all the
sportsperson of any game. In the initial period, the products will be targeted only towards the
local customers but later on, it is expecting to target the customers worldwide.

5BUSINESS PLAN
Strategy for market segment
Refresh health drink and energy booster will help in attracting the sportsperson
irrespective of their gender and age. As the pricing is done in a reasonable way therefore,
everyone will be able to afford this product of Andy and Sam. The company should try to grab
the international market after becoming successful in the local market in order to gain profit.
Strategy and implementation
The company will keep their strategies simple in order to appeal to a wider glocal (global
+ local) population. The natural content of the health drink and the energy booster will be
healthy and help in regaining their lost energy. The USP of the product is their natural healthy
ingredient, which will be most important factor for the sportsperson.
Competitive edge
The company will provide the best quality drink at a very reasonable price, which will
provide opportunity for easy selling in relation to the rival companies. In addition to that, the
product will be available in all the local stores, which will make easy availability for the local
players. The competitive edge of the Refresh Company is that it will target the local as well as
the established players with its health drink and energy booster.
4. Competitors
The primary competitors will be the local companies who are selling health drinks in the
market. Extra Joss and Hemaviton are the popular local health drinks that will give tough
competition to the company, Refresh energy booster and health drink. Singapore area will be the
major competitor as it contains other established brands of similar products. The competitors will
change with the expansion of the company at the international level. Monster, Rock star and

6BUSINESS PLAN
NOS are the top brands in the market of health drinks. Therefore, they will become the
immediate competitors of Refresh once they step into the international market. These are the top
selling health and energy drink companies, which have established their business from a long
time. Refresh Company will have to struggle against these giants in order to make its position in
the global market. The rival companies have built up their reputation and image so Refresh will
have to win over the competitive advantage to gain profit in the business.
5. Marketing strategy
Marketing program
The company will be implementing different marketing styles in order to provide a
unique edge to their new business. They will modify their marketing plan so that customer
awareness can be increased. The owners have decided to capitalize on their in- store marketing
and word- of- mouth policy because it is cost- effective and efficient in nature. The company will
conduct attractive events and invite the VIPs for promoting the products. FIFA World Cup 2018
will be the foundation of their promotion. The products will be showcased in the press
conferences of the matches and a replica of the product will be kept as display in all the small
and big sports events.
Local marketing
The company will display their product in the form of banners and digital ad in all the
prominent corners of the town. They will also use the strategy of covert advertising to display the
product of health drink and energy booster through other media. The local sports club will also
be used in the promotional activities of the product. The local players will be sponsored with the
energy booster and health drink products in order to spread the name of the new company among

7BUSINESS PLAN
the entire population of Singapore. It will help in increasing the awareness among customers
through verbal communication. The company will acclaim international recognition starting
from the local sports club and expanding to other sports club all over the world.
6. Sales strategy
Sales forecast
The key sales strategy will be to stick to the position and establish the product effectively
in front of the local customers. The focus will be given on the increasing revenue of the company
by attracting the customers towards Refresh, which will keep the rival companies behind. Being
a start- up company, it will help Refresh to satisfy the customers by offering them excellent
quality products at a very reasonable price.
The average sale per unit of energy booster will be $10 and for health drink, it will be
$12. Thus, it is expected to come to an average of $100,000 annual revenue per product. It will
lead to annual revenue of $184,000 for one year. The expected profit and loss assumption will
focus on the increase of annual cumulative price at the rate of 2% in second year and 4% at the
third year. Again, the annual cumulative inflation is expected to increase at the rate of 2% in the
2nd year and 4% in the third year.
Moreover, the gross margin is expected to be $138,000 in the 1st year, $140,760 in the 2nd
year and $146,390 in the 3rd year. Thus, the total revenue expected to be at the same amount as
there will not be any other revenue source as per the sales forecast. The total operating expense is
expected to become $41,500 in the 1st year, $42,330 in the 2nd year and $43,472 in the third year.
Additionally, the operating income is expected to be $96,500 in the 1st year, $98,430 in the
second year and $102,918 in the third year. Considering all these amounts for the three year, it is

8BUSINESS PLAN
expected that the cumulative income for the 1st year will be $63,772, $129,670 in the second year
and $199,516 in the third year.
7. Web plan summary
The Refresh health drink and energy booster company under the ownership of Andy and Sam
will advertise in a website by attaching the business card. It will be helpful in spreading the
portfolio of the start- up company all over the world. this is the advantage of using the online
media where the global population gets aware about a new product just by a single click of the
mouse. The business card of the company will be kept simple and clear and the design will be
effective in explaining the relevant information to the potential customers. The efficiency of the
business card is that it has the ability to reach a larger population in the global market without
much investment. The website of the company will contain the relevant information pertaining to
the product along with the ingredients and the different price range for different sizes. The
company will also print newsletters on a monthly basis to attract the additional probable
customers apart from the target customers. The owners have planned to display the product in the
form of pop- up ads in the pages of social media. This is because new media is the most effective
contemporary form of increasing awareness among the public.
8. Management summary
Management team
Refresh health drink and energy booster will manage their operations effectively and take
the charge of outdoor promotion of the products. The financial and marketing department of the
company will be taken care of by the respective personnel who have good knowledge about

9BUSINESS PLAN
finance and marketing. The managerial activities will be done by both Andy and Sam as they are
expert in the specific subject. Both of them are experienced in the field of management for 5
years and that is why it will be easy for them to handle the management activities. An effective
combination of marketing, finance and management by the experts will help Refresh to establish
their business in the local as well as international market.
Personnel plan
The personnel plan will be a sizeable amount within the company and it will be
conducted as per the revenue that is project ted for the future of the company. The employees of
the company will work for 8 hours daily and 56 hours every week to provide a prestif]gous
position to the company.
9. Financial plan
Expected Profit and Loss statement
Year 1 Year 2 Year 3
Revenue
Gross revenue $184,000 $187,680 $195,187
Cost of goods sold $46,000 $46,920 $48,797
Gross margin $138,000 $140,760 $146,390
Other revenue [source] $0 $0 $0
Interest income $0 $0 $0
Total revenue $138,000 $140,760 $146,390
Operating expenses
Sales and marketing $15,000 $15,300 $15,912
Payroll and payroll taxes $0 $0 $0
Depreciation $25,300 $25,806 $26,312
Maintenance, repair, and overhaul $1,200 $1,224 $1,248
Total operating expenses $41,500 $42,330 $43,472
Operating income $96,500 $98,430 $102,918
Interest expense on long-term debt $5,398 $4,290 $3,138

10BUSINESS PLAN
Operating income before other items $91,102 $94,140 $99,781
Loss (gain) on sale of assets $0 $0 $0
Other unusual expenses (income) $0 $0 $0
Earnings before taxes $91,102 $94,140 $99,781
Taxes on income 30% $27,331 $28,242 $29,934
Net income (loss) $63,772 $65,898 $69,846
Cumulative income $63,772 $129,670 $199,516
Balance sheet projections
Assets Initial balance Year 1 Year 2 Year 3
Cash and short-term investments $5,000 $38,053 $70,687 $103,795
Accounts receivable $0 $0 $0 $0
Total inventory $49,680.00
$50,673.6
0
$52,700.5
4
$55,862.5
8
Prepaid expenses 0 0 0 0
Deferred income tax 0 0 0 0
Other current assets 0 0 0 0
Total current assets $54,680 $88,727 $123,387 $159,657
Buildings $41,500 $41,500 $41,500 $41,500
Land 0 0 0 0
Capital improvements
$
5,000 5,000 5,000 5,000
Machinery and equipment
$
80,000 80,000 80,000 80,000
Less: Accumulated depreciation expense 0 25,300 51,106 77,418
Net property/equipment $126,500 $101,200 $75,394 $49,082
Goodwill $3,820 $0 $0 $0
Deferred income tax 0 0 0 0
Long-term investments 0 0 0 0
Deposits 0 0 0 0
Other long-term assets 0 0 0 0
Total assets $185,000 $189,927 $198,781 $208,739
Liabilities Initial balance Year 1 Year 2 Year 3
Accounts payable $0 $0 $0
Accrued expenses 0 0 0 0
Notes payable/short-term debt 0 0 0 0
Capital leases 0 0 0 0
Other current liabilities 32,621 70,277 110,189
Total current liabilities $0 $32,621 $70,277 $110,189

11BUSINESS PLAN
Long-term debt from loan payment
calculator
150,00
0 $122,306 $93,504 $63,550
Other long-term debt $0 $0 $0 $0
Total debt $150,000 $154,927 $163,781 $173,739
Other liabilities 0 0 0 0
Total liabilities $150,000 $154,927 $163,781 $173,739
Equit
y Initial balance Year 1 Year 2 Year 3
Owner's equity (common)
$
35,000 $35,000 $35,000 $35,000
Paid-in capital 0 0 0 0
Preferred equity 0 0 0 0
Retained earnings 0 0 0 0
Total equity $35,000 $35,000 $35,000 $35,000
Total liabilities and equity $185,000 $189,927 $198,781 $208,739
Expected cash flow statement
Year 1 Year 2 Year 3
Operating activities
Net income $63,772 $65,898 $69,846
Depreciation $25,300 $25,806 $26,312
Accounts receivable $0 $0 $0
Inventories ($994) ($2,027) ($3,162)
Accounts payable $0 $0 $0
Amortization 0 0 $0
Other liabilities 0 0 $0
Other operating cash flow items 0 0 $0
Total operating activities $88,078 $89,677 $92,996
Investing activities
Capital expenditures $0 $0 $0
Acquisition of business 0 0 0
Sale of fixed assets ($27,331) ($28,242) ($29,934)
Other investing cash flow items 0 0 0
Total investing activities ($27,331) ($28,242) ($29,934)
Financing activities
Long-term debt/financing ($27,694) ($28,802) ($29,954)
Preferred stock 0 0 0
Total cash dividends paid 0 0 0