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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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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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 “Power 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:

 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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Executive Summary:
Mission:
“Our mission is to serve people by providing quality energy drink”

Sologon:
“FEEL 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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The fundamentals of our business will be to “fulfill 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 “Gujrat”. 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
“Power 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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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 “Be 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) No new firm has entered in the business since last three years or so.
viii) The sales of our competitors are steady from the past three years.
ix) 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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Target Market:
 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 super-
charged, 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 Price

Power Trip Rs. 30
Red Bull Rs. 45
Monster Rs. 40
Throttle 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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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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Production Plan:
 Ingredients

Nutrition Value per 250ml

Energy 211k (46.6kcal)
j
Protein 0,5 g
Carbohydrate 10,5 g
s
Fat 0 g
Fruit pulps 30 g/l
Caffeine 70 g/l
 
Vitamin B 3 7,2 mg (min.40%
RDA)
Vitamin B 5 2 mg (min.33%
RDA)
Vitamin B 6 0,8 mg (min.40%
RDA)
Vitamin B12 0,4 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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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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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); calories 120; total fat 0g;
saturated fat 0g; cholesterol 0mg; sodium 75mg;
total crab. 32g; dietary fiber 0g; sugars 30g;
protein 0g; riboflavin 20%;
vitamin B6 10%; vitamin B12 10%; Fruit pulps 30%

Company Name SUNSTAR BEVERAGES

Brand Name Power Trip

Packaging Aluminum slim cans

Capacity/can 250 ml

Tray 24 x 250ml

Disposable Pallet 160 trays

Pallet weight 1150kg

Pallet dimension 100x120x?150cm

Transportation Can be organized if needed.

Payment Bank transfer or cash in hand.

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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.

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This provides our partners an opportunity to sell a high quality product, while increasing
their margins and offering higher profits to their re-sellers.

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
 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 Contribution

 Aftab Siddiqui 19%

 Haseeb Razzaq 15%
 Rizwan Safder 16%
 Saadat Meeran 19%
 Shayan Nadeem 18%
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 Tayyaba Kanwal 13%

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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The Organizational Chart:

Board of
Directors

CEO

Finance Marketing Human Resource

Manager Manager Manager

Finance Finance Marketing Marketing HR Officer HR Officer

Officer Officer Officer Officer
Officer

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Financial Plan:
Projected financial statement of company listed below:

Pro Forma Income Statement (PKR 000s) 2009 2010 2011

Sales 6600 9000 12000
Less: cost of sale (2200) 3000 4000
Gross Profit 4400 6000 8000
Operating Expenses
Salaries 1630 1950 2500
Rent 900 900 900
Sales & Marketing Exp 400 700 1100
Utilities 200 350 600
Office Exp 200 330 550
Deprecation 70 70 70
Tax 400 550 700
Total operating Exp 3800 4850 6420
Net Profit 600 1150 1580

Pro Forma Balance Sheet First year (PKR 000s)

Assets
Current Assets
Cash 650
Account Receivable 120
Inventory 300
Total current assets 1070
Fixed Assets
Office equipment 400
Plant 300
Less Deprecation (70) 630
Total assets 1700
Liabilities & owner equity
Current liabilities
Account Payable 100
Total Liabilities 100
Owner equity
Equity 1000
Retain earnings 600
Total owner equity 1600
Total Liabilities & owner equity 1700

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Pro Forma Cash Flow first year (PKR 000s)

Net income 600
Add: deprecation 70
Increase in inventory (300)
increase in debtors (120)
Increase in creditors 100
Net Cash flow from operating activities 350
Payment to fixed assets (700)
(350)
Balance 1000
Net cash flow 650

Break even Analysis:

8000

7000

6000

5000

Fixed Cost
4000
Sales
Total Cost
3000

2000

1000

0
0 50000 100000 150000 200000 250000

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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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: 10

Fixed Cost: 3800000

Expected Unit Sales: 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 700
Inventory 300
Total fund expanded 1000
Net increase in working capital 670
1670

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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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