SUNSTAR BEVERAGES

Office:
Bhimber Road, Near Pind Ftyana, Gujrat

Phone:
(053) 512453 (053) 515600

Fax:
(053) 510066

Email:
sunstarbeverages@gmail.com

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SUNSTAR BEVERAGES Table of Contents
TABLE OF CONTENTS ....................................................................................................................... 1 INTRODUCTION:................................................................................................................................. 3 DESCRIPTION OF BUSINESS: ........................................................................................................... 3 FINANCING:.......................................................................................................................................... 3 EXECUTIVE SUMMARY: ................................................................................................................... 4 MISSION:.............................................................................................................................................. 4 SOLOGON: ............................................................................................................................................ 4 VISION: ................................................................................................................................................ 4 OBJECTIVES: ........................................................................................................................................ 4 KEYS TO SUCCESS: ............................................................................................................................... 4 COMPANY HIGHLIGHTS: ....................................................................................................................... 4 INDUSTRY ANALYSIS: ....................................................................................................................... 6 TARGET MARKET: ................................................................................................................................ 7 COMPETITION: ...................................................................................................................................... 7 DESCRIPTION OF VENTURE: ........................................................................................................... 7 PRODUCT: ............................................................................................................................................ 7 SIZE OF OPERATION: ............................................................................................................................. 8 OFFICE EQUIPMENT: ............................................................................................................................. 8 BACKGROUND OF THE ENTREPRENEUR: ................................................................................................. 8 PRODUCTION PLAN: .......................................................................................................................... 9 Ingredients ...................................................................................................................................... 9 STAGES OF PRODUCTION PROCESS: ............................................................................................ 9 OPERATIONAL PLAN:...................................................................................................................... 10 MARKETING PLAN:.......................................................................................................................... 11 PRODUCT: .......................................................................................................................................... 11 PLACE ................................................................................................................................................ 12 Main Suppliers .............................................................................................................................. 12 Marketing Distribution Channel .................................................................................................... 12 PRICE: ................................................................................................................................................ 12 Discounts, Allowances Offered ...................................................................................................... 13 PROMOTION: ...................................................................................................................................... 13 Communication Channels.............................................................................................................. 13 ORGANIZATIONAL PLAN: .............................................................................................................. 13 HIERARCHAL STRUCTURE: .................................................................................................................. 14 FINANCIAL PLAN: ............................................................................................................................ 16 BREAK EVEN ANALYSIS: ..................................................................................................................... 17 APPENDIX: ......................................................................................................................................... 19 MARKET RESEARCH: .......................................................................................................................... 19

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SUNSTAR BEVERAGES Introduction:
The Sunstar Beverages is a new firm going to start its operation in Gujrat. It will start with an energy drink product with the name ³Power Trip´. Sunstar will be a partnership firm. The names of partners are given below. The firm is going to start its operations in a limited geographical level. The company¶s growth policy is to fulfill the customers need with quality product to grow.

Co-owners:
y y y y y y Aftab Siddiqui Haseeb Razzaq Rizwan Safder Saadat Meeran Shayan Nadeem Tayyaba Kanwal

Description of Business:
This business provides unique energy drink with mix fruits flavor without any harmful chemical. We provide healthy mix fruit energy drink with high quality and affordable price.

Financing:
Initial financing is PKR 10,00,000. This finance will cover office exp, marketing exp, plant and office rent. This report is confidential and is the property of co-owners listed above. It is intended for use only by the persons to whom it is transmitted, and any reproduction or divulgence of any of its consent is prohibited.

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SUNSTAR BEVERAGES Executive Summary:
Mission:
³Our mission is to serve people by providing quality energy drink´

Sologon:
³FEEL THE POWER´

Vision:
Our vision is to capture gujrat market by providing quality energy drink at low price in order to keep people healty and fit.

Objectives: 
Maintain positive, strong growth each year not withstanding seasonal sales patterns.  Achieve a comprehensive output in market penetration.  Decrease customer dissatisfaction simultaneously.  A double to triple digit growth for the first five years  Increase the profit margin by adequate percentage each quarter through efficiency and economy of scale.  Maintain a significant research and development and advertisement budget to enhance future product developments.

Keys to Success:
The keys to success are designing and producing such type of products that meet market demand. In addition, our Company must ensure total customer satisfaction. If these keys to success are achieved, it will become a profitable, sustainable company specifically which will produce long lasting results as well.

Company Highlights:
The firm is going to start the operation to fulfill the need of the market segment that still has not been fulfilling properly. The market segment which is known as the energy drink is our focus. The people today have too much busy life. Their tight work routine absorbs all the energy from their body and soul. In this situation they need something that fulfill their energy need and make them fresh instantly. There are some products already exist in the market to take advantage of that segment of market. But the fact is that the competition is not so stiff in this segment. Another fact is that the products which already exist in the market have a high rate.

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SUNSTAR BEVERAGES
The fundamentals of our business will be to ³fulfill the need of the people to remain energetic with our world class product at an affordable price´. We take our customer as our first priority while taking any decision. Our target market of our mix fruit Energy drinks are mainly targeted towards those who need some sort of energy boost. Now everyone is facing the super-charged, over-worked lifestyle, but young people are especially vulnerable to persistent exhaustion and insufficient energy. We will specially make our marketing efforts around Teenagers, Adults, and also Late 50¶s. The owners are the firm is the partners in the firm who don¶t have any intention to go in the public. The names and share of the partners are mention in the operational plan of the. The capital can be raise from the banks as well if necessary at any time. The industry has a very bright future as everyone expecting from the trends prevailing in the market. The energy drinks demand is rising as compared to the other drinks available in the market. The people are coming more and more towards the energy drinks not only to get their selves fresh but also regain the energy of the body which they loss during the everyday chores of work. As the share of industry is rising as the time passes on so to launch a business in such an environment where on one side the industry share of total market is increasing and on other side not much competitors are available in that segment looks like a very vise decision. The one weakness which we have is that we are new entrants in the industry as well as well we do not have the as much financial resources as the other competitors have. But the positive point is that we can still successfully compete with competitors due to our strategy. The one weakness that we have few financial resources is overcome by our strategy to start with a small geographical region ³Gujrat´. The advantage which we have over the competitors is that all the partners belong to the same geographical region so they are well familiar with the target population of the area. No matter that financial resources are few but the extensive marketing strategy can be launched because of the small geographical area. The close knitted connections of the partners in area and quality product at affordable price can win a leaders place in that area for our product. To fulfill this need and want of people we are launching our product with the name ³Power Trip´ in the market. As we want to see the response of the public towards our product before launch it on a vast level, so we are launching it in the regional area of Gujrat in initial stages.

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SUNSTAR BEVERAGES Industry analysis:
The industry analysis for the drink concluded with following key points for the drink. i) Power Trip has cultural effects in it also. It will be produced domestically and will have competitive edge against the other imported drinks like low cost etc. Moreover the company can take the advantage of ³Be Pakistani & Buy Pakistani´ also. Power Trip can be customized according to the varying needs of the culture which may take place from time to time. ii) Technological changes are kept in mind in developing the idea of this particular product. Initially existing technology will be used in production and later on if there is change in the technology then new technology will be used in for long run after proper pre-testing. iii) At present there are no so much legal concerns about this business. And being a food item there is no as such restriction imposed by the Govt. because all ingredients used in making this drink are HALAAL. iv) There are many other drinks available in the market. But our focus is on the health of the consumers. More people will replace their carbonated soft drink by something 'healthier' ± noncarbonated drink. v) Company is forming its own market with the unique concept of providing energy drink with fruit flavor and original vitamins without the effect of any harmful chemical. vi) There is increase in the sales of drinks in the market over the past three years. The sales of the energy drinks have doubled in two years. So the growth rate of the industry is good. vii) viii) ix) No new firm has entered in the business since last three years or so. The sales of our competitors are steady from the past three years. Our customers belong to the different social classes i.e. middle class, upper class, and so on. x) No new product introduced by the competitors since last three years. Distribution channel not much efficient.

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SUNSTAR BEVERAGES
Target Market:
y y y y y Teenagers Adults Gamerz Sports persons Also Late 50¶s

Target Market of our mix fruit Energy drinks are mainly targeted towards those who need some sort of energy boost. Now everyone is susceptible to the fatigue of the supercharged, over-worked lifestyle, but young people are especially vulnerable to persistent exhaustion and insufficient energy.

Competition:
Company is forming its own market with the unique concept of providing energy drink with fruit flavor and original vitamins without the effect of any harmful chemical. There are several other competitors who are providing energy drinks but we are specially focusing on healthy energy drink with original fruit contents with low caffeine margin.

Energy Drink Power Trip
Red Bull Monster Throttle

Price Rs. 30 Rs. 45 Rs. 40 Rs. 50

Description of Venture:
This section will provide detail our product, size of our operation, office equipment, and background of the entrepreneur

Product:
Our product is fresh energy drink for those people who need some sort of energy boost. But young people are especially vulnerable to persistent exhaustion and insufficient energy. This energy drink will keep them fresh and will give energy to their body

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SUNSTAR BEVERAGES

This energy drink will have unique freshness, high energetic calories and low price as compare to the existing energetic drinks available in market.

Logo:

Size of operation:
We are conducting our operations in Gujrat city. We are lunching our energy drinks in Gujrat city. This will be available in all beverages store, super markets and in shops.

Office equipment:
We have purchased well office equipment e.g. chairs, tables drink stands and other necessary equipment tools.

Background of the entrepreneur:
In the past we have been serving the people by offering different products Many of our products are already in market which are very successful e.g. soft drink, herbal oil, herbal shampoo many others. Now we think that we should provide an energy drink to people who keep them healthy and retain them fit and fresh.

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SUNSTAR BEVERAGES

Production Plan:
Ingredients

Nutrition Value per 250ml Energy 211k (46.6kcal) j Protein 0,5 g Carbohydrates 10,5 g Fat 0 g Fruit pulps 30 g/l Caffeine 70 g/l Vitamin B 3 7,2 mg (min.40% RDA) Vitamin B 5 Vitamin B 6 Vitamin B12 2 0,8 0,4 mg (min.33% RDA) mg (min.40% RDA) mg (min.40% RDA)

METHOD USED TO ESTABLISH THE DEGREE OF PURITY.
The samples of the product have been analyzed according to the United Nations ST/NAR/7 Manual, using the method of Gas Chromatography Mass GCM.

STAGES OF PRODUCTION PROCESS:
1. Reception Selected different fruits are first received at the Production Plant. 2. Crushing Then the fruits are crushed after removing solid impurities through Sieving. 3. Maceration During this process, the wet crushed fruits are left in the hydro alcoholic solution to

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SUNSTAR BEVERAGES
separate into hydro soluble constituents by soaking until the fruits have taught the proper amount of tannins. 4. Alkalinisation Next, a solution of caustic soda or sodium hydroxide (NaOH) is added to the obtained extract in order to precipitate alkaloids. 5. Filtration At this stage, the alkalized extract is passed through a filter in order to remove any suspended solid particles. 6. Acidification After that, the former alkaline extract is acidified. Finally, the obtained ERG - A20 Extract is bottled and stored.

Operational plan:
Operational plan of the product includes inventory, shipping, storage, inventory control procedures, and customer services. i) Just in time inventory system will be used in case of our product. It will reduce the storing cost also which will give us competitive edge against our customers. There will be no of suppliers of raw material to avoid any kind of problem in future. ii) All manufacturing operations will take place in own factory. For this purpose machinery needed has already been installed. iii) Outward suppliers will pay the shipping charges for the finished goods. In case of bulk purchase company will pay 30% charges. Purchase of 50,000 units in a month is the limit for the purpose. iv) Experienced workers will be hired from other industries as part time workers at a cost of Rs. 300 per day which will train our employees. v) Finished products of the drink will be stored in company rented building which has the capacity to store 100,000 units in it. Rent of the building is Rs.10,000 per month.

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SUNSTAR BEVERAGES
vi) We will maintain the finished goods inventory of 30,000 units at any time (including factory). vii) A survey will be conducted after every six months periods including finding out the market trends and consumer demands about the product. Later on product can be changed according to the needs.

Marketing plan:
Product:
Power Trip energy drink water contains Carbonated water, high fructose syrup and/or sugar, Citric Acid, orange and apple juice from concentrate, natural flavors, Sodium Benzoate, Sodium Polyphosphates, Caffeine, Erythrism Acid, Maurine, Calcium Imodium Etta (to product flavor), Potassium Benzoate, Brominates Vegetable oil.

Nutrition Facts
Serving size: 1 can (8.4oz); saturated fat 0g; total crab. 32g; protein 0g; vitamin B12 10%; Company Name Brand Name Packaging Capacity/can Tray calories 120; cholesterol 0mg; dietary fiber 0g; riboflavin 20%; Fruit pulps 30% SUNSTAR BEVERAGES Power Trip Aluminum slim cans 250 ml 24 x 250ml total fat 0g; sodium 75mg; sugars 30g; vitamin B6 10%;

Disposable Pallet 160 trays Pallet weight Pallet dimension 1150kg 100x120x?150cm

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SUNSTAR BEVERAGES
Transportation Payment Can be organized if needed. Bank transfer or cash in hand.

Packaging:
Designing and Packaging many energy drink companies are more exclusive in their marketing efforts because they gear their products and advertising to a very specialized group. These groups include gamers, extreme sports enthusiasts. You can see the effects of this emphasis on such a target market because it is seen in the advertising campaigns of energy drinks.

Place
Power Trip focuses on the big and high growth market shared cities of Pakistan like Karachi, Lahore, Islamabad and Multan. Power Trip is also focusing on small cities so that their product will be available even in the small shop of rural area. Main Suppliers
Different suppliers in beverage sector in Gujrat.

Marketing Distribution Channel Power Trip used indirect marketing distribution channel in which only Retailers are involved. Retailers buy the product and sell that product directly to the final consumer for their personal and non business. Some of major store retailers are:     Super markets Departmental store Food and beverages store Convenience store

Price:
Pricing wise, we follow our motto "Classy but not expensive". As a result, we offer a high quality and fashionable product at a lower price. It allows us to position ourselves as one of the best quality/price balanced brands. This provides our partners an opportunity to sell a high quality product, while increasing their margins and offering higher profits to their re-sellers.
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SUNSTAR BEVERAGES

Purchase price of retailer of 1 can is Rs.30

Discounts, Allowances Offered In the competition with other energy and fruit drinks Power Trip tries to gain market share with giving Power Trip with reduce prices in special events such as Ramadan offer, Basant, and other Events.

Promotion:
We will promote our product by using different communication channel. Communication Channels
y y y y T.V campaigns (through Cable) Bill boards Local Newspapers Advertising Campaigns

Organizational Plan:
The Power Trip company will be a partnership firm. The partnership will lie between the founders of the company. Partnership will be according to their share of capital invested in the firm. Profit will be distributed between them as per their percentage share in the firm. The every decision will be taken with the consensus and majority of votes will be required to take the decision. On every important document the signature of the at least 3 members should be there. This will also imply on the financial side of the firm. Partners and their contribution to capital is as follow

Name of Partners y y y y y y Aftab Siddiqui Haseeb Razzaq Rizwan Safder Saadat Meeran Shayan Nadeem Tayyaba Kanwal

Contribution 19% 15% 16% 19% 18% 13%

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SUNSTAR BEVERAGES

Hierarchal Structure:
The hierarchal structure of the Power Trip company is as follow: Board of Directors------------------------------------------ Partners of Firm Chief Executive Officer----------------------------------- Saadat Meeran Chief Financial Officer------------------------------------ Sara Bano Marketing Manager---------------------------------------- Shams Ali Anjum HR Manager------------------------------------------------- Salman Dar Production Manager--------------------------------------- Shayan Nadeem Operational Manager-------------------------------------- Aftab Siddiqui

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SUNSTAR BEVERAGES
The Organizational Chart:

Board of

Directors

CEO

Finance
Manager

Marketing
Manager

Human Resource Manager

Finance Officer

Finance Officer

Marketing Officer

Marketing Officer

HR Officer

HR Officer

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SUNSTAR BEVERAGES

Financial Plan:
Projected financial statement of company listed below:

Pro Forma Income Statement (PKR 000s) Sales Less: cost of sale Gross Profit Operating Expenses Salaries Rent Sales & Marketing Exp Utilities Office Exp Deprecation Tax Total operating Exp Net Profit

2009 6600 (2200) 4400 1630 900 400 200 200 70 400

2010 9000 3000 6000

2011 12000 4000 8000 2500 900 1100 600 550 70 700 6420 1580

1950 900 700 350 330 70 550 3800 4850 600 1150

Pro Forma Balance Sheet First year (PKR 000s) Assets Current Assets Cash Account Receivable Inventory Total current assets Fixed Assets Office equipment Plant Less Deprecation Total assets Liabilities & owner equity Current liabilities Account Payable Total Liabilities Owner equity Equity Retain earnings Total owner equity Total Liabilities & owner equity

650 120 300 1070 400 300 (70)

630 1700

100 100 1000 600 1600 1700
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SUNSTAR BEVERAGES
Pro Forma Cash Flow first year (PKR 000s) Net income Add: deprecation Increase in inventory increase in debtors Increase in creditors Net Cash flow from operating activities Payment to fixed assets Balance Net cash flow 600 70 (300) (120) 100 350 (700) (350) 1000 650

Break even Analysis:
8000 7000 6000 5000 4000 3000 2000 1000 0 0 50000 100000 150000 200000 250000 Fixed Cost Sales Total Cost

We are determining the break even point graphically.
The horizontal axis showing the no of unit sold and the vertical axis showing for sales revenue and costs. The sales line starts at the origin ends at the point satisfying expected sales. The fixed cost line runs parallel to the horizontal axis meets the vertical axis at a point which represents a total fixed cost.

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SUNSTAR BEVERAGES
The total cost line starts where the fixed cost line meets the vertical axis ends at the point which represents anticipated sales on the horizontal axis and total cost of the anticipated sales at the vertical axis.

Variable Cost per unit: Fixed Cost: Expected Unit Sales:

10 3800000 190000

Break even Volume:

fixed cost / price ± variable cost

3800000 / 30 ± 10 = 190000

Pro Forma Sources and applications of fund (PKR 000s) Sources of fund Personal fund 1000 Net income 600 Add: Deprecation 70 1670 Application of fund Plant & Office Equipment Inventory Total fund expanded Net increase in working capital 700 300 1000 670 1670

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SUNSTAR BEVERAGES Appendix: 
   The contract of lease of land and building. The lease contract of the machinery. The partnership contract between the partners of the firm. The agreement with suppliers.  Rental contract with the logistic facility provider.

Market Research:
Among college energy drink users, consuming energy drinks is particularly popular for insufficient sleep, when one needs more energy in general, to drink with alcohol while partying, and when studying for an exam or completing a major course project. Drinking three or more for a given situation occurs more frequently among those who consume energy drinks for three or more of the six situations that were assessed. Side effects of consuming energy drinks and headaches occur in many energy drink users.

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