Business Plan Report: Stereo Energy Drink Company Analysis

This report presents a comprehensive business plan for Stereo, a newly established company specializing in energy drinks and fresh juices. The plan details the required capital, estimated at 1,000,000 Euros, and identifies debt capital as the primary funding source. It proposes a city-adjacent location with an attractive layout and a budget of 75,000 Euros for equipment. The plan outlines human resource requirements, emphasizing qualified and innovative employees, with initial staffing focused on finance, human resources, marketing, and front desk operations. The target market is segmented by demographics, primarily focusing on health-conscious youth and sports enthusiasts. The product offerings include a variety of energy drinks and flavored juices, positioned as affordable and healthy alternatives. The report identifies key competitors like Red Bull and Monster, and highlights strengths such as competitive pricing, while acknowledging weaknesses in promotional activities. The unique selling proposition centers on the tagline "feel the adventure you want." The conclusion summarizes the key elements of the plan, including capital, location, human resources, and market analysis, along with the company's strengths, weaknesses, and competitive landscape. The report references various academic sources to support its analysis.

INTRODUCTION TO
BUSINESS

TABLE OF CONTENTS
 INTRODUCTION
 MAIN BODY
 Amount and type of capital
 Proposed location, Layout and equipment budget
 Human resource requirement
 Target market
 Product offering
 Competitors
 Strength and weakness
 USP
 CONCLUSION
 REFERENCES

INTRODUCTION
• Business plan refers to formal written document which
contains goals of the business. It contains the methods
to achieve goal and time frame for achievement of the
goals.
• Stereo is newly based company which sells the products
such as energy drinks and fresh juices .
• Presentation will address to the amount and type of
capital required. It will brief on location and layout. It
will explain the human resource requirement. Identify
with STP analysis.
• Describe the benefits of the product. Will be
highlighting the competitors.
• It lastly will be brief on the strengths and weaknesses
with unique selling point of the company products.

AMOUNT AND TYPE OF CAPITAL
 Amount of capital to start up the proposed business of selling the stereo
energy products will require the huge amount .
 Amount of capital is nearly expected to be with 1000000 Euro to ensure the
smooth functioning of the business in initial stages to attract huge customer
base.
 Type of capital for the proposed business will require the debt capital

PROPOSED LOCATION,LAYOUT
AND EQUIPMENT BUDGET
 The proposed location for the newly start business location will be near to
city. It will be in the location which is on the ease and convenience for its
target audience to reach and purchase its products if energy drink and other.
 The layout for the business store will be planned with effective ambience that
will serve as the means of the getting the audience attracted to the store.
 The budget for the equipment’s is planned at 75000 Euros. It is so as it will
helps with the means of getting standard equipment’s that helps with easy flow
of business operation and are attractive for the customer and business to use.

HUMAN RESOUCE REQUIREMEN
 The human resource that are the employees of the company are
expected to be highly qualified and talented to deal with its customers.
 They are being required to provide proper training and development,
which leads with less flaws and errors to achieve the goals of the newly
based start up.
 The employees are expected and required to be innovative and highly
creative which will support with coming up with the ideas that supports
with the business growth.
 In the initial stage it requires 2 individual who will see the finance of
the company, 2 who will look with the human resource of the company.
3 who will look with the marketing of company. One with the front
desk and who will handle cash of the company.
Particulars Amount ( Euros)
Per employee
Remuneration 500
Training and
development
programs
200
Retirement
benefits
100
Insurance
policies
150
Total 950

TARGET MARKET
 Segmentation- It relates with demographic segmentation which includes age,
gender, income, occupation, education , standard of living and other.
 Targeting – Main target market of the company are the youths of the region who are
highly conscious about there health. It includes sports enthusiast who are focused,
committed and dedicated to health living.
 Positioning- Company will position itself by doing the effective promotion and marketing
in the marketplace. It can be by the means where the company can spread awareness of
the product and service offering by the means of digital and social media platform.

PRODUCT OFFEREING
 The company offers with wide variety of energy drink product and various flavoured drinks
and juice
 Key feature of the products of the company are, it is at the price which is being easily
affordable for the customer. The products helps with catering and satisfying the needs and
wants of the target audience. s such as Mango, Strawberry and various other.
 The benefit of this is, product leads with less sugar and caffeine which serves as the healthy
living

COMPETITORS
 Main competitor for the company in energy drink segment are Red bull and Monster drink who hold with the
sufficient market share.
 The competitors for the Juice segment includes, Real fruit juice, Tropicana and various other.

STRENGTHS AND WEAKNESSES AND
USP
 The strength of the company lies with the prices which are being charged as
compared to its competitors. It is so because customers first element to
wards making of the purchase decision relates with prices of products and
services being offered
 The weaknesses is being ascertained with no effectiveness of promotional
activity, where its is being hard for generating with the awareness of the
company products and services.
 The unique selling proposition lies with the Tag line that is “feel the
adventure you want”, it comprises with the whole picture of product
offering . It also implies with the employees who will be serving to meet
the undefined targets of the company.

CONCLUSION
 From the above presentation it is being concluded that to start a business, it needs high level of planning.
 It is being understood with the amount and type of capital required, location, layout
 . It is being concluded with human resource required, target audience that is majorly between 18-45 , with brief
on key features and benefits of products.
 It lastly has identified with strengths and weaknesses, with competitors to the company and has highlighted
with the unique selling proposition of the company

REFERENCES
 Anderson, P.J., 2017. Grandma's candy shoppe business plan(Doctoral dissertation).
 Barrow, C., Barrow, P. and Brown, R., 2018. The Business Plan Workbook: A Step-By-Step
Guide to Creating and Developing a Successful Business. Kogan Page Publishers.
 Gartner, W.B. and Teague, B.T., 2017. What Does “Writing A Business Plan” Mean?.
In Conference paper (pp. 1-3).
 Hopp, C. and Greene, F.J., 2018. In pursuit of time: Business plan sequencing, duration and
intraentrainment effects on new venture viability. Journal of Management Studies, 55(2),
pp.320-351.
 Johnson, J.E. and Garvin, W.S., 2017. Advanced practice nurses: Developing a business plan for
an independent ambulatory clinical practice. Nursing Economics, 35(3), p.126.
 Jukova, E.E.,and et.al ., 2019. Planning a new business: typical mistakes of a business plan in
the service sector. Journal of Environmental Management & Tourism10(3 (34)). pp.441-447.
 McKenzie, D. and Sansone, D., 2019. Predicting entrepreneurial success is hard: Evidence from
a business plan competition in Nigeria. Journal of Development Economics. 141. p.102369.