Business Plan

for the Production

of
Smoothy refresh Juice

NAME: W J M B ABEYSEKARA
INDEX: KAACBM221P-005
ACBM
NIBM

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Table of Contents
Executive summary.....................................................................................................................................3
01) Business Overview.................................................................................................................................3
1.1 Introduction...........................................................................................................................................3
1.2 The vision statement for the company:.................................................................................................4
1.3 The following are some of the company's objectives............................................................................4
02) Environmental industry analysis............................................................................................................4
2.1 Pestle Analysis:......................................................................................................................................5
2.2 SWOT Analysis: Strength Weakness Opportunity Threat......................................................................6
2.3 Our rivals include:..................................................................................................................................8
03) Marketing strategy:...............................................................................................................................9
3.1 Marketing Plan......................................................................................................................................9
3.2 Positioning Strategies:...........................................................................................................................9
3.3 Segmentation of the market:.................................................................................................................9
3.4 Market Targeting:................................................................................................................................10
3.5 Marketing mix:....................................................................................................................................11
04) Operational plan..................................................................................................................................14
4.1 Access to operations in general...........................................................................................................14
4.2 Business Location................................................................................................................................15
4.3 The new management team and structure of the company...............................................................15
05) Financial forecasts...............................................................................................................................15
5.1 Revenue from Sales:............................................................................................................................15
5.2 Cash flow.............................................................................................................................................16
06 ) Risk mitigation plan............................................................................................................................16
Reference...................................................................................................................................................17

Executive summary

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This report describes the business plan of Refresh beverage Pvt ltd to create ambitions of a fresh
juice manufacturing company. Fresh is produced and packaged in a clean, healthy, and efficient
way as a smooth fresh juice brand that appeals to people from all walks of life and
socioeconomic strata. began the company's vision and purpose statement at the beginning of the
report and completed it. It is promoted through numerous promotional programs and ads, as well
as sample distribution to the general public. This research investigates the initial initiation of the
product in the Sri Lankan domestic market. Primary and secondary sources are used in the
investigation. Early research focused on a competitive survey and client preferences. This
technology enables the company to connect to the market and gain a large number of customers.
To do this, SWOT analysis to assess the strengths, weaknesses, opportunities, and threats of the
organization. The entire production process strictly complies with international standards and all
products are constantly researched and developed. We are convinced that our products and
services meet the highest standards, our pricing strategy is fair, and our distribution channel is
simple. As a result, our target customers have no problem getting it. We expect to gain a healthy
and competitive market share in the soft drinks sector. Smoothy Juice delivered on the promise
of great value to its customers. As a result, the client develops loyalty to the Smoothy Refresh
Juice brand and creates long-term partnerships. This sector has great potential in our country.

01) Business Overview

1.1 Introduction
Introduction to "Smoothy Refreshing Juice" Our nation's people An fresher natural energy drink
is needed to excite them. Smoothy Refresh is a juice drink. When people are tired or
overworked, It keeps them fresh and gives them strength. It has protein and vitamins, both of
which give you energy. Proteins are the energy cells that give the human body the energy it
needs to function well. Vitamins provide vitality. Students, laborers, and employees are tired
from their workload and the sun makes them feel comfortable. They need a re-energizing energy
drink to perform better and re-energize.
“The taste you like” is the slogan
ingredients
Mango, orange, apple, and mixed berries Sugar Ascorbic acid Stabilizer Preservative Artificial
flavor Carotene Carotene Ascorbic acid Stabilizer Artificial flavor Carotene
The market situation now: Sri Lankans can buy Refresh products made from fresh juice. We
cater to people of all ages. Fresh is reasonably priced as it caters to everyone in the market
including kids, teenagers, adults, and the entire family.

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1.2 The vision statement for the company:

"Lead the market with customer value."

"To develop a world-class standard in the juice business by providing a diverse selection of high-
quality juice products," says the company's mission statement. According to Islamic beliefs,
try to fulfill the tasks and demands of the customers by serving society.

1.3 The following are some of the company's objectives.

 Increased market share by 30%

 The product line, which is now five in length, should be increased to six or seven shortly.

 Profit expansion

 To compete with formidable opponents such as Nestlé

02) Environmental industry analysis

A significant portion of the food and beverage operating environment is dominated by the
beverage business environment. It is the macro environment in which the company operates. The
work environment is directly affected by changes in the beverage industry and vice versa.
PESTLE factors are external variables that influence the organization such as political,
economic, social, technological, legal, and environmental factors. The company gains trust. In
the ability to assess their impact and respond to changes to gain a market advantage.

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2.1 Pestle Analysis:

PESTLE is an acronym for these influencing factors, a technique for grouping similar elements.
These factors have the following effects on the business:

Examples of political aspects are the impact of government actions and policies on the beverage
industry, such as tax policies, labor laws, environmental laws, and political stability.

The company will be affected by economic issues like economic growth, interest rates, and
inflation. An organization's cost of capital affects interest rates that limit future investment.

Social Factors to Consider: Beverage consumption patterns are influenced by socio-cultural

factors such as health consciousness, population growth, population age, and occupational
attitudes, all of which will affect the performance of the beverage company.

Technological advancements, IT impacts and other technological elements will increase the
efficiency of beverage operations. Such technological adaptation can have both positive and
negative effects on the firm.

Environmental factors; Weather, climate change, seasonality, and other environmental factors
will affect the beverage industry.

Legal Things like drug law, employment, health and safety, service tax, and consumer protection
will affect the beverage sector.

For making strategic decisions, PESTLE analysis uses the above-mentioned criteria. To make
decisions and prepare for future events, businesses need to understand the larger macro
environment in which they operate. An effective way to understand the "big picture" of the
environment. PESTLE analysis. To be effective, a PESTLE study should be conducted on a
regular and systematic basis, thereby giving the company a competitive edge.

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2.2 SWOT Analysis: Strength Weakness Opportunity Threat

The following SWOT analysis looks at Smooth Fresh Juices, a company in the FMCG business.
The study depicts its strengths, weaknesses, opportunities, and threats.

Strengths:
The good characteristics of a firm, the things they do well, and the influence they have are its
strengths. The qualities of a corporation offer it an advantage over competitors in specialized
industries. Smoothy refresh juice's strengths are shown below.
 The technology plant has been updated.

 High-qualityty product

 Specialists exist for specific occupations and responsibilities.

 Recruitment of experienced personnel

 Medical insurance of employees

 Made in Sri Lanka

 Lower middle-class people are targeted.

 Reasonable cost

 The expiration date is more than six months away.

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Weaknesses:
The shortcomings of a firm are aspects that can be changed or done better and are under its
control. Weaknesses are factors that cause you to fall behind in competition or prohibit you from
reaching your goals. The following are Smoothy refresh Juice's significant flaws.
 A newcomer to the juice industry

 A limited distribution networks

 Strong opponent

 No market shares.

 Customer experience is limited.

Opportunities:
External developments, trends, or requirements that can improve or benefit a company's or
organization's strategic position are referred to as opportunities. Let's take a look at the instances
that Smoothy Refresh Juices has encountered.

 Expanding the distribution network

 Purchasing new technology and techniques

 The market is both vast and appealing.

 Taking over the delivery

Threats:

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Threats are occurrences that can limit, damage, or imperil a business or organization's sectors.
They are external elements over which the company has no control. This section aids in the
development of contingency plans and strategies by informing you of potential hazards and
assisting you in preparing for them. Smoothy Refresh Juices is now confronting the following
challenges.

 Political insecurity

 A new entrant from a competitor

 There are several competitors.

 Customer retention

 The instability of the economy

 General sales tax increase

 Plant development

2.3 Our rivals include:

Refreshingly smooth Juice is now in a competitive market. Because Refresh's rivals include:
 Kotmale
 Smack
 Nestle
Product Review: smoothy freshness is available in 250ml bottles with various flavors including
Mango Orange Apple Pineapple Blend and Drink Choco. Fruit Competitor Refresh has more
than five competitors as Smoothy Refresh Juice. Nestle and Smack are now market leaders ahead
of the competition. Nestlé and Smack have had loyal customers for years, and since they are so
old, people are aware of their pros and cons. The primary objective of the company is to compete
with large market share competitors.

03) Marketing strategy:

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Our primary objective in the marketing strategy is to establish our new brand within the
company. The goal of the marketing strategy is to educate consumers about the product, establish
relationships with the intended audience, and build customer loyalty and referrals. Increasing
consumer awareness. Our new product, "Smooth Refresh," is two distinct marketing strategies.
We can raise product awareness and create a brand image for our products through events,
advertisements, and pamphlets. This will assist us in promoting our new product. Quality Leads
to Cost Our goal is to be the market leader in both quality and cost. We are the market leader in
excellent quality because we offer unique beverages of the highest possible quality. Using state-
of-the-art technology, economies of scale, and locally sourced raw materials, reputable vendors
help us reduce costs.

3.1 Marketing Plan

Our marketing target is to expose the product to the market, build a brand image and sell 50,0000
units every year. It may take us two or three years to reach this level initially, but that is the goal
we want to achieve.

Marketing strategy focuses on placing the product in the minds of consumers.

• Providing high-quality juice to consumers

• To maximize revenue, we distribute our products in bulk.

3.2 Positioning Strategies:

Our objective is to establish a mental image of our product in comparison to that of the rival. We
want to target high school, college, and graduate students, as well as government entities in need
of a quick "refresher."

3.3 Segmentation of the market:

Refresh will divide the market into two segments:

 Geographical segmentation

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  Demographic segmentation

Geographic Segmentation:
Colombo is the new geographic target area. As a first stage, we will supply items to all parts of
Colombo.
Demographic Segmentation:
The population is segmented based on age, gender, income, employment, education, lifestyle,
social class, and family size.

3.4 Market Targeting:

The steps are as follows:

1) Market segment evaluation: The selected market segments should be carefully examined.
Three factors are taken into account.

 Segment size and growth: The company should check the geographical and demographic
segments in which the juice is to be offered as well as the size and growth of the segment
in which the juice is to be introduced.

 It addresses the power of juice buyers, the power of juice suppliers, and the availability of
juice within the category.

 Objectives and resources of the company: Targeting should be done so that the company
can achieve its objectives with the resources it has.

2) Stock selection: The stock chosen by the firm for juice is indistinguishable.

Targeting: Customers targeted by the corporation

include -children, youth, and mature youth.

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3.5 Marketing mix:

 Product  Price  Promotion  Place

Product Strategy:

Our product will provide our consumers with a taste experience like no other when it comes to
juice-based soft drinks. They can distinguish our product from others in the soft drink industry
due to its quality and testing. They don't feel like other soft drinks in the market.

• Establishing long-term client relationships

• Add value to customer life.

• Go to great lengths to not only delight but retain our customers.

• To achieve this goal, the company has established sales, marketing, and customer
service requirements.

Product Variety: Mango Apple Orange Sugarcane Grape Blend and Chocolate are among the
flavors offered for our product.

"Smoothy Refresh" is the name we've picked for our product.

Our primary priority will be quality assurance. This is provided:

•. Observance of high-quality standards

• Total Quality Control (TQM)

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• Access to high-quality ingredients

Design- "Refreshing" is a sweet, refreshing juice packaged in a clear tetra box.

Here are some features of our product:

• Juice from fresh fruits

• It contains protein and minerals.
• Vitamins are administered.
• Advantages of Kidney Health
• Unique in flavor
• • Provides freshness

The product units are packaged loosely in 6-layer tetra pack bricks.

Pricing Strategy: The total cost, including customs services and other costs, is the basis for our
product pricing. Generally, pricing plans change as a product goes through its life cycle. To win
a significant share of the market and a large number of customers, the price needs to be set at a
reasonable level. We charge exactly Rs 180 for 250 ml, while other juices, soft drinks, and
energy drinks of the same size cost more than Rs 250. It maintains its brand value through
competitive pricing.

Promotions:

Promotion is the first step in launching a new product, but the strategy is still being decided. Our
goal is to project a positive image of our products so that consumers will buy them only from us.
Since we are new to the industry, our primary marketing strategy is to run extensive promotions
to create market awareness. There are several ways to accomplish this. We greatly like to
conduct our promotional operations through television, billboards, print, and online social media.
We may also go to schools, colleges, and universities to provide free samples of our product.

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Promotion Criteria:

 Awareness
 Knowledge
 Liking
 Preference

Places:

Distributor Evaluation:
To assure its production availability. Refresh" juice has built a strong registered dealer network.
This juice is primarily aimed at the Sri Lankan market. The store will then sell the "Refresh"
juice to end users. The distributor is the most trustworthy in the area. They have a spotless
reputation and commercial partnerships with numerous stores, particularly in Sri Lanka's rural
and remote areas. This guarantees that "Smoothy Refresh" is available in Sri Lanka. As
mentioned earlier, we have established a strong and coordinated distribution network and carry
out the mass distribution. To encourage our distributors to sell more, we provide sales-based
incentive programs. Before reaching the consumer, soft drinks are distributed through several
different channels. Distributors, who act as intermediaries and facilitate further distribution and
storage, distribute a very small portion of the goods. Supermarkets and general stores contribute
up to fifty percent of soft. Beverage purchases by customers. Outlets for fast food and beverages.
For delivery, our goods can be delivered by rail or road.

Manufacturer

Consumer Distributor

Retailer Wholeseller

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Controls: This is the major and final section of the marketing strategy. If there is a problem in
the marketing strategy, we may use it to compare the quality of our product to our standards and
rectify it. Planning, for example, Measurements, Comparison, Corrective

A Marketing Corporation:

The Chief Marketing Officers of Refresh are in charge of the complete marketing strategy of the
organization. Other employees help him with sales campaigns, merchandising, customer sales
promotion, and public relations.

04) Operational plan

According to Viehland (2005), "the process that turns resource inputs into usable outputs is
formally defined as an operation." It describes how your business works as well as how your
product or service is made and sold. Using the terms "back-stage" and "forward-stage"
operations to describe how you manage your business is a good strategy.

4.1 Access to operations in general

It depicts both backstage and frontstage views of the activity. Our operational strategy includes
an operational manual.

We have already obtained the necessary government business license for that. In addition, we
have obtained permission from the Colombo Ministry of Health. Our working hours will be a
traditional 7.5 hours per day, with two 30-minute breaks and a 40-minute lunch break. In an
automated procedure, we extract the smooth juice product and process it to generate a fresh one
that is packaged for distribution.

4.2 Business Location

Our manufacturing facility is located in Colombia. We have leased 5 acres of land in Colombo 7
area. It is located close to the highway, making transportation of raw materials, and finished
goods easy. It features an artificial pond where we can deposit our soft industrial waste. We
came to Colombo City Corporation for assistance and guidance with heavy industrial waste.

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4.3 The new management team and structure of the company

The founder or founders and several senior managers usually make up a startup management
team. It includes, among others, founders, board of directors, advisory board, managers, and key
personnel. The most skilled and experienced people in the business. up to the management team.

05) Financial forecasts

Refresh Beverage Pvt Ltd's financial situation is very encouraging. Eclipse refresh drinks make
money; Compared to the majority of startups today, the initial investment is significantly lower.
One of the most important differences between Refresh beverage Pvt ltd and its competitors is
the financial investment in its personnel. Beyond the purchase of equipment or facilities, Refresh
Beverage Pvt Ltd expects to carry it through a mix of initial investment and long-term financing
without any additional equity or debt investment. The financial plan is based on fundamental
assumptions, the majority of which are listed in the table below. Important underlying
assumptions include:

5.1 Revenue from Sales:

Yearly 500000 units at Rs 180 each unit is Rs 90000000. Sales revenue will rise by 5% the
following year, 10% the following year, and 15% the following year.

5.2 Cash flow

The cash flow statement records the personal income received by the owners each year. The first
three years are quite lucrative, but as refreshes Pvt ltd grows, the owner's compensation also
increases. In three years, you can generate 200% more personal income than what is reported
now and use the extra money to build your company without a bank loan. This report examines
all annual net cash inflows and outflows.

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06 ) Risk mitigation plan

As with any food service business, the risk of failure in the first year is significant. Refresh
Beverage Pvt Ltd combats this by focusing on techniques that reduce initial costs and subtle
promotions to appeal to locals and visitors. The possibility of losing money in the first year of
operation is obvious, but it can be avoided by taking additional cost-cutting measures such as
reducing store hours, eliminating hired help, raising selling prices, and increasing the
promotional budget to attract more smooth juices. Customer base. Smoothy Refresh Juice's
business plan reduced the amount of borrowed money to give the company more time to
generate significant sales. A smaller scale is more cost-effective, so if monthly estimates are not
met, downsizing allows the organization to operate more environmentally friendly.
Every year beverage and agricultural companies receive millions of dollars in settlements, fines,
and judgments from individuals who have been harmed as a result of the sale, promotion, or
manufacture of their products. A single corruption allegation or a nationwide consumer class
action alleging that consumers were misled about the contents of a product are examples of legal
risks associated with beverage sales. By any reasonable standard, some claims are legitimate
while others are frivolous. In the face of these real and varied risks, a responsible market
participant must constantly analyze. and modifying its litigation and regulatory risk mitigation
plan. Creating a liability risk profile that focuses on important areas of risk can help bring to light
potential liability risks that might otherwise appear murky and unclear. A good plan to reduce the
risk of litigation for food and beverage manufacturers depends on the special characteristics of
the product as well as the nature of consumers and distribution channels. These are just a few of
the professions and disciplines required for successful implementation. With the threat of costly
lawsuits or regulatory challenges, the barriers to producing, processing, and selling beverages to
the general public are already formidable. Many potential claims and legal issues can be avoided
by carefully preparing and considering these steps.

Reference

Schmidt, Kent, "Risk Mitigation Strategies For Food And Beverage Companies: <I>Five Prophylactic
Measures</I> | News & Resources | Dorsey", Dorsey.Com (Webpage, 2022)
<https://www.dorsey.com/newsresources/publications/client-alerts/2017/10/risk-mitigation-
strategies-for-food-and-beverage>

Richardson, Monica, "Business Plan For A New Soft Drinks Free Essay
Example", Studymoose (Webpage, 2022) <https://studymoose.com/business-plan-for-a-new-soft-
drinks-essay>

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Chatterjee, Chiranjib, "Food And Beverage Business Environment", Linkedin.Com (Webpage, 2022)
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