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Office:

F-10 markaz , Islamabad

Phone:

051-5512453

051-5515600

Fax:

051-5510066

Email:

sunstarbeverages@gmail.com

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ENTREPRENEURSHIPBUSINESS PLAN

SUBMITTED TO:

SIR JASIM TARIQ

PRESENTED BY:

SAADIA ALEEM

SIBGHA SADIQ

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ACKNOWLEDGEMENT

First of all thanks to Almighty Allah for giving us the power

and ability to complete this project. Secondly, thanks to our

honorable teacher Sir Jasim Tariq who believed in our

abilities for completion of this project.

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Table of Contents

INTRODUCTION: ....................................................................................................................................... 5

DESCRIPTION OF BUSINESS: ................................................................................................................ 5

FINANCING: ................................................................................................................................................ 5

EXECUTIVE SUMMARY: ......................................................................................................................... 6

MISSION: .................................................................................................................................................... 6SOLOGON: .................................................................................................................................................. 6VISION: ....................................................................................................................................................... 6OBJECTIVES: ............................................................................................................................................... 6KEYS TO SUCCESS: ..................................................................................................................................... 6COMPANY HIGHLIGHTS: ............................................................................................................................. 6

INDUSTRY ANALYSIS: ............................................................................................................................. 8

TARGET MARKET: ...................................................................................................................................... 9

COMPETITION

: ............................................................................................................................................ 9

COMPETITORS...10

DESCRIPTION OF VENTURE: ...............................................................................................................11

PRODUCT: ..................................................................................................................................................11SIZE OF OPERATION: ..................................................................................................................................11OFFICE EQUIPMENT: ..................................................................................................................................12

PRODUCTION PLAN: ...............................................................................................................................12

INGREDIENTS ...................................................................................................................................12STAGESOFPRODUCTIONPROCESS: ................................................................................................13

OPERATIONAL PLAN: ............................................................................................................................13MARKETING PLAN: ................................................................................................................................14

PRODUCT: ..................................................................................................................................................14PLACE........................................................................................................................................................15

Main Suppliers ........... .......... ........... .......... ........... .......... .......... ........... .......... ........... .......... ........... .......15Marketing Distribution Channel .......... .......... ........... .......... ........... .......... ........... .......... ........... .......... ..15

PRICE:........................................................................................................................................................16Discounts, Allowances Offered .......... ........... .......... .......... ........... .......... ........... .......... ........... .......... ....16

PROMOTION: ..............................................................................................................................................16Communication Channels ....................................................................................................................16

ORGANIZATIONAL PLAN: ....................................................................................................................16

HIERARCHAL STRUCTURE: ........................................................................................................................17

FINANCIAL PLAN: ...................................................................................................................................18

BREAK EVEN ANALYSIS: ...........................................................................................................................19

APPENDIX: .................................................................................................................................................21

MARKET RESEARCH: .................................................................................................................................21

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Introduction:The Sunstar Beverages is a new firm going to start its operation in Islamabad. 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 companys growth policy is to fulfill the customers need

with quality product to grow.

Co-owners:

Saadia Aleem Sibgha Sadiq

Description of Business:This business provides unique energy drink with many fruit flavors without any harmful

chemical. We provide healthy fruit energy drinks with high quality and affordable price.

Financing:

Initial financing is PKR 1,000,000. 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 foruse only by the persons to whom it is transmitted, and any reproduction or declaration of

any of its content is prohibited.

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Executive Summary:

Mission:

Our mission is to serve people by providing quality fruit energy drink

Slogan:FEEL THE POWER

Vision:

Our vision is to capture Islamabad market by providing quality energy drink at low price

in order to keep people healthy and fit.

Objectives:

Maintain positive, strong growth each year not withstanding seasonal salespatterns.

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 toenhance 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-workedlifestyle, 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 50s.

The owner of the firm is the partners in the firm. 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 availablein 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

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 ourstrategy. The one weakness that we have few financial resources is overcome by our

strategy to start in the capital Islamabad. 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 ourproduct before launch it on a vast level, so we are launching it in the regional area of

Islamabad 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 domesticallyand will have competitive edge against the other imported drinks like lowcost 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 thisparticular 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. Andbeing 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 onthe 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 providingenergy 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 threeyears. The sales of the energy drinks have doubled in two years. So the

growth rate of the industry is good.

vii) The sales of our competitors are steady from the past three years.viii) Our customers belong to the different social classes i.e. middle class,

upper class, and so on.

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Target Market:

Teenagers Adults Gamerz Sports persons Also Late 50s

Target Market of our 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.

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COMPETITORS

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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 fruit energy drinks 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

This energy drink will have unique flavors, 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 Islamabad city. We are lunching our energy drinks

in Islamabad city. This will be available in all beverages store, super markets and in

shops.

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Office equipment:

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

necessary equipment tools.

Production Plan:

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.

Ingredients

Nutrition Value per 250ml

Energy 211k

j

(46.6kcal)

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 2 mg (min.33%

RDA)

Vitamin B 6 0,8 mg (min.40%RDA)

Vitamin B12 0,4 mg (min.40%

RDA)

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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

separate into hydro soluble constituents by soaking until the fruits have taught the proper

amount of tannins.

4. Alkalinization

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. Itwill reduce the storing cost also which will give us competitive edge

against our customers. There will be no of suppliers of raw material toavoid any kind of problem in future.

ii) All manufacturing operations will take place in own factory. For thispurpose machinery needed has already been installed.

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iii)Outward suppliers will pay the shipping charges for the finishedgoods. 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 timeworkers at a cost of Rs. 300 per day which will train our employees.

v) Finished products of the drink will be stored in company rentedbuilding which has the capacity to store 100,000 units in it. Rent of the

building is Rs.10,000 per month.

vi)We will maintain the finished goods inventory of 30,000 units at anytime (including factory).

vii)A survey will be conducted after every six months periods includingfinding 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%

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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.

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 specializedgroup. 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, Gujrat 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 SuppliersDifferent suppliers in beverage sector in Islamabad.

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.

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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.

Purchase price of retailer of 1 can is Rs.100

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 by the mutual consent. This will also imply on the

financial side of the firm. Partners and their contribution to capital is as follow

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Name of Partners Contribution

Saadia Aleem 50% Sibgha Sadiq 50%

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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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 70Tax 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 650Account 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 100Total 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 100Net Cash flow from operating activities 350

Payment to fixed assets (700)

(350)

Balance 1000

Net cash flow 650

Break even Analysis:

We are determining the breakeven 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.

0

1000

2000

3000

4000

5000

6000

7000

8000

0 50000 100000 150000 200000 250000

Fixed Cost

Sales

Total 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 / pricevariable cost

3800000 / 9010 = 47500

Pro Forma Sources and applications of fund (PKR 000s)

Sources of fund

Personal fund 1000

Net income 600

Add: Deprecation 701670

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.