You are on page 1of 21

cccccccccccccccccccccc c

cccc

cccccccccccccccccccccccccc c

c
c

?   
m  


 

ccc c
ccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccc
c
cccccccccccccccccccccc c
cccccc| 
Sr.No Contents Topics Covered
c  
  yc Co-owners
yc Œescription of Business
yc 6inancing
c p 

yc Dission
yc ogan
yc [ision
yc  ectives
yc aeys to uccess
yc Company High ights
6 ?
 yc ?roduct Œescription
yc ?ackaging
J D

 yc Darket Research
yc darget Darket
yc Competition
î D

  
 yc Yame of ?artners-
Contri ution
yc Hierarcha tructure
yc dhe rganizationa Chart

ccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccc cc  cc


c
cccccccccccccccccccccc c
Õ ?

 yc ize of operation

 yc ffice equipment
yc Background f dhe
Entrepreneur
yc ?roduction ? an
yc Dethods Used do
Esta ish dhe Œegree f
?urity
yc tages f ?roduction
?rocess
„ 
 yc perationa p an
yc ? ace
yc Dain upp iers
yc Darketing Œistri ution
Channe
yc ?rice

yc Œiscounts, A owances
ffered
yc ?romotion
2
6

?
 yc ?ro 6orma Income
tatement
yc ?ro 6orma Ba ance heet
6irst year
yc ?ro 6orma Cash 6 ow first
year
yc Break even Ana ysis
yc ?ro 6orma ources and
app ications of fund

ccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccc cc  cc


c
cccccccccccccccccccccc c
c

‘c D? p?c
dhe DARd Beverages is a new firm going to start its operation in Guarat. It
wi start with an energy drink product with the name ³ mart Energy Œrink´.
dhe DARd Beverages wi e a partnership firm. dhe names of partners are
given e ow. dhe firm is going to start its operations in a imited geographica
eve . dhe company¶s growth po icy is to fu fi the customers need with qua ity
product to grow.

c

yc A asi 6 dinwa a
yc ?uneet Œaga
yc Harshit hah

Π

c c
c

dhis usiness provides unique energy drink with mix fruits f avor without any
harmfu chemica . We provide hea thy mix fruit energy drink with high qua ity
and afforda e price.



cc

Initia financing wi e of 1,00,00,000. dhis finance wi cover office exp,


marketing exp, p ant and office rent.

dhis report is confidentia and is the property of co-owners isted a ove. It is


intended for use on y y the persons to whom i t is transmitted, and any
reproduction or divu gence of any of its consent is prohi ited.

ccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccc cc  cc


c
cccccccccccccccccccccc c
c

ë p 

yc D

c
c

c
c cc  cc 

c
cc
c
c

yc ccc  c c


c

yc [

ccc
ur vision is to capture gurat market y providing qua ity energy drink at ow
price in order to keep peop e hea ty and fit.

yc 
c
c

Îc Daintain positive, strong growth each year not withstanding seasona


sa es patterns.
Îc Achieve a comprehensive output in market penetration.
Îc Œecrease customer dissatisfaction simu taneous y.
Îc A dou e to trip e digit growth for the first five years
Îc Increase the profit margin y adequate percentage each quarter through
efficiency and economy of sca e.
Îc Daintain a significant research and deve opment and advertisement
udget to enhance future product deve opments.

yc ac c  c
dhe keys to success are designing and producing such type of products that
meet market demand. In addition, our Company must ensure tota customer
satisfaction. If these keys to success are achieved, it wi ecome a profita e,
sustaina e company specifica y which wi produce ong asting resu ts as
we .

ccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccc cc  cc


c
cccccccccccccccccccccc c
c

yc  c
!
! c
dhe firm is going to start the operation to fu fi the need of the market segment
that sti has not een fu fi ing proper y. dhe market segment which is known
as the energy drink is our focus. dhe peop e today have too much usy ife.
dheir tight work routine a sor s a the energy from their ody and sou . In this
situation they need something that fu fi their energy need and make them fresh
instant y.

dhere are some products a ready 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 a ready exist in the market
have a high rate.

dhe fundamenta s of our usiness wi e ³to fu fi the need of the peop e to


remain energetic with our wor d c ass product at an afforda e price´. We take
our customer as our first priority whi e taking any decision.

ur target market of our mix fruit Energy drinks are main y targeted towards
those who need some sort of energy oost. Yow everyone is facing the super -
charged, over-worked ifesty e, ut young peop e are especia y vu nera e to
persistent exhaustion and insufficient energy. We wi specia y make our
marketing efforts around deenagers, Adu ts, and a so Late 50¶s.

dhe owners are the firm is the partners in the firm who don¶t have any intention
to go in the pu ic. dhe names and share of the partners are mention in the
operationa p an of the. dhe capita can e raise from the anks as we if
necessary at any time.

dhe industry has a very right future as everyone expecting from the trends
prevai ing in the market. dhe energy drinks demand is rising as compared to the
other drinks avai a e in the market. dhe peop e are coming more and more
towards the energy drinks not on y to get their se ves fresh ut a so regain the
energy of the ody which they oss during the everyday chores of work. As the
share of industry is rising as the time passes on so to aunch a usiness in such
an environment where on one side the industry share of tota market is
increasing and on other side not much competitors are avai a e in tha t segment
ooks ike a very vice decision.

ccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccc cc  cc


c
cccccccccccccccccccccc c

dhe one weakness which we have is that we are new entrants in the industry as
we as we we do not have the as much financia resources as the other
competitors have. But the positive point is that we can sti successfu y
compete with competitors due to our strategy. dhe one weakness that we have
few financia resources is overcome y our strategy to start with a sma
geographica region ³Guarat´. dhe advantage which we have over the
competitors is that a the partners e ong to the same geographica region so
they are we fami iar with the target popu ation of the area. Yo matter that
financia resources are few ut the extensive marketing strategy can e aunched
ecause of the sma geographica area. d he c ose knitted connections of the
partners in area and qua ity product at afforda e price can win a eaders p ace
in that area for our product.

do fu fi this need and want of peop e we are aunching our product with the
name ³?ower drip´ in the market. As we want to see the response of the pu ic
towards our product efore aunch it on a vast eve , so we are aunching it in
the regiona area of Guarat in initia stages.


ccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccc cc  cc
c
cccccccccccccccccccccc c
6 c ?  
yc ?  



   t i  
    i   t
    
   t 
    t  B t       i     t  i t t

 ti  i ii t  


i   i i t

 i  i  tt
i 
i 
  i  i 
 i  
 
i
   ti  i     i
 tt
i ti   tii  i  i t

t    i   ti   C t t


i
  t     
 Citi i        i    tt t      
i B ti   
 
t Ci  t
i iD i 
C i  i  tt t  t     t i  B t Bi t 
! t i 

 


 
i  i"# $% &   i #'(&   tt t( & 
t tt( &   
  t ( &  i )* & 
tt +' &   it i( &   +( & 
ti ( &   i i '(,&  iti B6#(,&
iti B#'#(,&   - it  +(,

ccc c

ccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccc
c
cccccccccccccccccccccc c

yc ?



 i i    i      i  i   i


i t
i ti t  t
  t
i t  ti i t
  i i  
     i     t t 
 t
i t  .     t
 t   t
i  
 i    
  t t t
 iti   i t
ti i i   i  

 
C   DRTB  

B      




 i   i i  i 

Cit   '*( 

T  '%'*( 

i     t #6(t 

 ti
t ##*( 

 ti i  #((#'(#*(

T tti  C   ii 

  t B t 


i 
 

ccc c
ccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccc
c
cccccccccccccccccccccc c

 c D



yc D c" !c
Among co ege energy drink users, consuming energy drinks is particu ar y
popu ar for insufficient s eep, when one needs more energy in genera , to drink
with a coho whi e partying, and when studying for an exam or comp eting a
maor course proect. Œrinking three or more for a given situation occurs more
frequent y among those who consume energy drinks for three or more of the six
situations that were assessed. ide effects of consuming energy drinks and
headaches occur in many energy drink users.

yc d cD c


c

Îc dc
Îc m c
Îc  c c
Îc mc# c$%&c
c
darget Darket of our mix fruit Energy drinks are main y targeted towards those
who need some sort of energy oost. Yow everyone is suscepti e to the fatigue
of the super-charged, over-worked ifesty e, ut young peop e are especia y
vu nera e to persistent exhaustion and insufficient energy.

c
c

ccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccc cc  cc


c
cccccccccccccccccccccc c
c
yc  

c
Company is forming its own market with the unique concept of providing
energy drink with fruit f avour and origina vitamins without the effect of any
harmfu chemica .

dhere are severa other competitors who are providing energy drinks ut we are
specia y focusing on hea thy energy drink with origina fruit contents with ow
caffeine margin.

ccŒ
c 
c
?ower drip Rs. 30
Red Bu Rs. 45
Rea Juice Rs.30
Appy 6izz Rs.30
c

c
c

ccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccc cc  cc


c
cccccccccccccccccccccc c
î c D

  


dhe DARd Beverage Company wi e a partnership firm. dhe partnership


wi ie etween the founders of the company. ?artnership wi e according to
their share of capita invested in the firm. ?rofit wi e distri uted etween
them as per their percentage share in the firm. dhe every decision wi e taken
with the consensus and maority of votes wi e required to take the decision.
n every important document the signature of the at east 2 mem ers shou d e
there. dhis wi a so imp y on the financia side of the firm. ?artners and their
contri ution to capita is as fo ow

Yc c   




†c A asi 6 dinwa a 50%
†c ?uneet Œaga 25%
†c Harshit hah 25%

yc
 !c  c
dhe hierarcha structure of the ?ower drip Company is as fo ow"

Board of Œirectors------------------------------------------?artners of 6irm

Chief Executive fficer-----------------------------------A asi dinwa a

Chief 6inancia fficer------------------------------------ ?unnet Œaga

Darketing Danager----------------------------------------Harshit shah

HR Danager------------------------------------------------- Hardik [aghe a

?roduction Danager--------------------------------------- udeep Œixit

perationa Danager-------------------------------------- ?radeep ?raapati

ccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccc cc  cc


c
cccccccccccccccccccccc c
yc d!c
'
c ! c
c

   
 




 c  c Vc c


c c c

 cccccccccc  cccccccccc  c  c V cccc V cccc


c c c c c c

ccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccc cc  cc


c
cccccccccccccccccccccc c
Õ c ?


yc
'c c 
c
We are conducting our operations in Guarat city. 6irst, We wi e aunching
our energy drink in Guarat and ater on in other cities a so. dhis wi e
avai a e in a everages store, super markets and in shops.

yc 
c
 c
We have purchased we office equipment e.g. tore Cup-Boards, chairs, ta es
drink stands and other necessary equipment too s.

yc  c c !c  c


In the past we have een serving the peop e y offering different products

Dany of our products are a ready in market which are very successfu e.g. soft
drink, her a oi , her a shampoo many others.

Yow we think that we shou d provide an energy drink to peop e who keep them
hea thy and retain them fit and fresh.

yc 
cc

(
 c
Yutrition [a ue per 250m
Energy 211k (4 . kca 

?rotein 0,5 g
Car ohydrates 10,5 g
6at 0 g
6ruit pu ps 30 g
Caffeine 70 g
[itamin B 3 7,2 mg (min.40%
RŒA
[itamin B 5 2 mg (min.33%
RŒA
[itamin B 0,8 mg (min.40%
RŒA
[itamin B12 0,4 mg (min.40%
RŒA

ccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccc cc  cc


c
cccccccccccccccccccccc c
c

yc D !c)cdc 
!cd!cŒc c
c

dhe samp es of the product have een ana yzed according to the United
Yations dYAR7 Danua , using the method of Gas Chromatography
Dass GCD.c
c

yc dm  cc"Œ) d(Yc"  c


*+c" 

e ected different fruits are first received at the ?roduction ? ant.
,+cc !

dhen the fruits are crushed after removing so id impurities through ieving.
-+cD 

Œuring this process, the wet crushed fruits are eft in the hydro a coho ic
so ution to separate into hydro so u e constituents y soaking unti the fruits
have taught the proper amount of tannins.

.+cm



Yext, a so ution of caustic soda or sodium hydroxide (YaH is added to the
o tained extract in order to precipitate a ka oids.
$+c
 

At this stage, the a ka ized extract is passed through a fi ter in order to
remove any suspended so id partic es.
/+cm




After that, the former a ka ine extract is acidified. 6ina y, the o tained ERG
- A20 Extract is ott ed and stored.
c

ccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccc cc  cc


c
cccccccccccccccccccccc c
„ c 

yc  
c cc
perationa p an of the product inc udes inventory, shipping, storage,
inventory contro procedures, and customer services.

ic Just in time inventory system wi e used in case of our


product. It wi reduce the storing cost a so which wi give us
competitive edge against our customers. dhere wi e no of
supp iers of raw materia to avoid any kind of pro em in future.
iic A manufacturing operations wi take p ace in own factory.
6or this purpose machinery needed has a ready een insta ed.
iiicutward supp iers wi pay the shipping charges for the finished
goods. In case of u k purchase company wi pay 30% charges.
?urchase of 50,000 units in a month is the imit for the purpose.
ivcExperienced workers wi e hired from other industries as part
time workers at a cost of Rs. 300 per day which wi train our
emp oyees.
vc 6inished products of the drink wi e stored in company rented
ui ding which has the capacity to store 100,000 units in it. Rent of
the ui ding is Rs.10,000 per month.
vicWe wi maintain the finished goods inventory of 30,000 units
at any time (inc uding factory.
viic A survey wi e conducted after every six months
periods inc uding finding out the market trends and consumer
demands a out the product. Later on product can e changed
according to the needs.

ccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccc cc  cc


c
cccccccccccccccccccccc c

yc  c
In the Initia stage we wou d ike to focus into the ig cities of Guarat ike
Ahmada ad, urat, Baroda,etc. DARd Beverages wi a so ike to focus on the
ig and high growth market shared states of India ike Dum ai, ao kata, and
Chennai . mart Energy Œrink is a so focusing on sma cities so that their
product wi e avai a e even in the sma shop of rura a rea.

c
yc D
c  
c
Œifferent supp iers in everage sector in Guarat and a so we wou d ike to take
the he p of some Agents a so.

yc D
cŒ
 

c !c
mart Energy Œrink wi e so d through indirect marketing distri ution channe
in which on y Retai ers are invo ved. Retai ers can uy the product and se that
product direct y to the fina consumer for their persona and non usiness.

ome of maor store retai ers are"

†c uper markets
†c Œepartmenta store
†c 6ood and everages store
†c Convenience store

yc 
c
?ricing wise, we wi use the motto "C assy ut not expensive". As a resu t, we
offer a high qua ity and fashiona e product at a ower price. It a ows us to
position ourse ves as one of the est qua ityprice a anced rands.

dhis provides our partners an opportunity to se a high qua ity product, whi e
increasing their margins and offering higher profits to their re -se ers.

?urchase price of retai er of 1 can is "+-%c


ccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccc cc  cc
c
cccccccccccccccccccccc c

yc Œ
  0cm c 
In the competition with other energy and fruit drinks ?ower drip tries to gain
market share y giving at same price as competitors ut with more qua ity and
quantity, and a so we wou d ike to reduce price in specia events such as
Œiwa i, Yavratri,Ramadan offer and other Events.

c
yc 
c
We wi promote our product y using different communication channe .



c !c
c

†c d.[ campaigns (through Ca e


†c Bi oards
†c Loca Yewspapers
†c Advertising Campaigns


ccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccc cc  cc
c
cccccccccccccccccccccc c
2 c 6

?

?roected financia statement of company isted e ow"

cc( c   c1c%%%2c ,%%3c ,%*%c ,%**c


a es 00 9000 12000
Less" cost of sa e (2200 3000 4000
Gross ?rofit 4400 000 8000
perating Expenses
a aries 1 30 1950 2500
Rent 900 900 900
a es & Darketing Exp 400 700 1100
Uti ities 200 350 00
ffice Exp 200 330 550
Œeprecation 70 70 70
dax 400 550 700
dota operating Exp 3800 4850 420
Yet ?rofit 00 1150 1580

cc c ! c
 cc1c%%%2c
m c
Current Assets
Cash 50
Account Receiva e 120
Inventory 300
dota current assets 1070
6ixed Assets
ffice equipment 400
? ant 300
Less Œeprecation (70 30
dota assets *4%%c
#



c5cc
c
Current ia i ities
Account ?aya e 100
dota Lia i ities 100
wner equity
Equity 1000
Retain earnings 00
dota owner equity 1 00
dota Lia i ities & owner equity *4%%c

ccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccc cc  cc


c
cccccccccccccccccccccc c
cc !cc
 cc1c%%%2c
Yet income 00
Add" deprecation 70
Increase in inventory (300
increase in de tors (120
Increase in creditors 100
Y c !c c c 
c


c -$%c
?ayment to fixed assets (700
(350
Ba ance 1000
Y c !c c /$%c

ccm
c


 c


 c


  
c
We are determining the reakeven point graphica y. c

dhe horizonta axis showing the no of unit so d and the vertica axis showing for
sa es revenue and costs. dhe sa es ine starts at the origin ends at the point
satisfying expected sa es.

dhe fixed cost ine runs para e to the horizonta axis meets the vertica axis at a
point which represents a tota fixed cost.

ccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccc cc  cc


c
cccccccccccccccccccccc c

dhe tota cost ine starts where the fixed cost ine meets the vertica axis ends at
the point which represents anticipated sa es on the horizonta axis and tota cost
of the anticipated sa es at the vertica axis.

[aria e Cost per unit" 10

6ixed Cost" 3800000


Expected Unit a es" 190000

Break even [o ume" fixed cost  price ± varia e cost

3800000  30 ± 10 = 190000

cc  cc 



c c c1c%%%2c
ources of fund
?ersona fund 1000
Yet income 00
Add" Œeprecation 70
*/4%c
App ication of fund
? ant & ffice Equipment 700
Inventory 300
dota fund expanded 1000
Yet increase in working capita 70
*/4%c
c

ccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccc cc  cc


c