Introduction
The name of the proposed business is EnergyFizz.
The name of the founder is STUDENT NAME.
The proposed business will create new organic formulas for energy drinks. The company will obtain these formulas from companies in the Asian markets and modify them to introduce in the US market. The idea is to offer a wide range of energy drinks with different tastes in easy handling packaging to consumers across the U.S. market. The idea of the proposed business is motivated by the success of 5-Hour Energy that has become a success in the US for its unique value proposition and offers to customers. Although there are organic energy drink companies selling their products, the proposed business aims to introduce energy drinks that use organic ingredients and offer high value of energy in small quantity for consumption. In this way, the company can compete against other companies on the basis of its value proposition and low price offering. In the same way, the proposed business will work on getting different energy formulas from manufacturing companies in Asia countries such as China, South Korea, and Taiwan to introduce them in the US market after getting approval from U.S. Food and Drug Administration (FDA). The idea of the business is not to set up a production unit for this product but instead acquire the finished product from suppliers in the Asian market and repackage them to meet the requirements of the U.S. market. In this way, the company will avoid initial heavy investment and could make a deal with the suppliers to produce and deliver the finished product to the U.S. for repackaging and distribution. The company aims to offer products that have ingredients with high level of energy value. The company will ensure small size packaging for its products that could help the company to place its products near or on checkout in retail stores throughout the U.S.
Elevator Pitch
Are you sure that the energy drink you are consuming has not side effects? We are sure that you are no aware of their ingredients and consuming them regularly without knowing that these products are actually affecting your brain and metabolism. We are offering a new range of energy drinks that have no artificial ingredients and are all natural/organic. Our products will have high energy content prepared with safe and organic ingredients keeping in view the demand for different and delicious flavors of energy drinks. We understand that the importance of health and healthy eating and drinking habits. We have worked on developing new, strong, and unique tastes to satisfy customers need for quick energy with no harmful effects on their health. We are of the view that it is our social responsibility to work towards developing products that are safe for humans and at the same time give them the thrilling experience that could have from consuming our energy drinks. Our energy drinks have high-energy value that will be offered in different flavors. The energy drinks consumers have not experienced will surely become a success as it will offer unique taste and meet consumers’ demand for energy drinks. We will provide the bottle size of 2 ounce at a price of $28.99 per 12-bottle pack. We will work with national distributors and retailers to ensure that our products get appropriate shelf space near or on the checkout. Our aim is to achieve low cost of sales and offer higher margins to both distributors and retailers to ensure the preference and availability of our products that will help our company make its strong entry in the market. Our company is sure that if we are able to create buzz for our new products then it will become success in a short period with great returns for investors.
Part 1: Product/Service Feasibility
Issues Addressed in This Part
Concept Statement Test
Concept Statement
The concept of the product is to offer a variety of organic energy drinks with high-energy content and amazing tastes from different parts of the world. The product will be offered in small size packing with competitive pricing.
Strengths of the Product
Strengthening the Idea
Although the demand for energy drinks has been increasing in the recent years, the competition in the market is also becoming tough. Therefore, the company must ensure that its product idea remains unique by offering a high-energy product that is different from others. The company should also ensure that it could work with retailers to display its products prominently that will help the company’s efforts. Lastly, the company needs to develop unique and interesting concept for its marketing activities that could attract customers and assist the company in achieving higher sales.
Feasibility of the Idea
In total 10 individuals were provided product concept to provide their feedback. Out of 10 individuals, three are of the view that the company it is a difficult proposition as the market is already saturated and many brands are selling this product in the market. The remaining seven individuals are of the view that the success of the new product will depend upon the tastes it offers to consumers and the way it initiates its launch. There is always demand for new products in the U.S. market and they are of the view that if the company delivers high value proposition to consumers it will become a success
.
Other comments and suggestions
The company should have an interesting brand name and product names. The company should provide complete ingredient details on bottles.
Buying Intentions Survey
In total 15 prospective customers were inquired regarding their buying intention and the following results were achieved.
It clearly indicates that most of the customers i.e. 60% are willing to try the new product as there is still high demand for energy drinks and new tastes that could help the new business. Moreover, if the company is able to initiate the product launch successfully then the it could also convince potential customers (i.e. 27%) who are at present unsure whether they will buy the product or not.
Conclusions
The new organic energy drink is highly desirable.
There is high demand for energy drinks in the U.S. and globally.
Product/service feasibility (circle the correct response)
Not Feasible Unsure Feasible
D. The company must keep its focus on product development, packaging, placement, and marketing activities to ensure that the product becomes successful.
Part 2: Industry/Market Feasibility
Industry Attractiveness Assessment Tool
Industry NAICS: 3121 (Beverages)
Target Market Attractiveness
The company aims to target energy drinks market that falls into the category of Soft Drink Manufacturing in the U.S. The NAICS code is 312111 . The competitors of the company Scheckter's Organic Energy Drink, Sambazon, Dark Dog, Guayaki, and Brain Juice.
Target Market Attractiveness Assessment Tool
Market Timeliness Assessment Tool
Conclusion (expand fields and report findings, in discussion form, for each area)
The company should focus on major markets in the U.S. and then expand to other states.
Part 3: Organizational Feasibility
Management Prowess Assessment Tool
Resource Sufficiency Assessment Tool
Conclusion (expand fields and report findings, in discussion form, for each area)
The company needs to support highly skilled managers and support staff for better working.
Part 4: Financial Feasibility
Total Startup Cash Needed (to Make First Sale)
Comparison of the Financial Performance of Proposed Venture to Similar Firms
Use the following tables to compare the proposed new venture to similar firms in regard to annual sales (Year 1 and Year 2) and profitability (Year 1 and Year 2).
Comparison of the Financial Performance of Proposed Venture to Similar Firms Assessment Tool
Annual Sales
Net Income
Overall Financial Attractiveness of the Proposed Venture
The following factors are important in regard to the overall financial attractiveness of the proposed business.
Assess the strength of each factor in the following table.
Overall Financial Attractiveness of Proposed Venture Assessment Tool
Conclusion (report finding for each area)
Various costs factors are based on estimates and the company must have reserve funding to meet the requirement of the new business.
Overall Feasibility: Summary and Conclusion
Conclusion—briefly summarize your justification for your overall assessment.
Overall, it could be indicated that there is high demand for energy drinks and there is criticism of the flavors that non-organic energy drink producers are offering to consumers. Therefore, there is potential for a new product that would use organic ingredients and offer amazing tastes. The proposed business is feasible, but careful planning is required to engage customers in different activities for promoting the products and brand.
References
312111 Soft Drink Manufacturing. (2012). Retrieved from http://www.census.gov/cgi-bin/sssd/naics/naicsrch
Aufiero, B. (2015, July 2). Why Do People Buy Energy Drinks? google_ad_section_end() . Retrieved from http://www.livestrong.com/article/423042-why-do-people-buy-energy-drinks/
Bailey, S. (2015, March 12). Energy drinks stay in demand despite health concerns. Retrieved from http://marketrealist.com/2015/03/energy-drinks-stay-demand-despite-health-concerns/
Bernstein, B. (2016, February 7). Top 5 Best Healthy Organic Energy Drinks . Retrieved from http://heavy.com/health/2016/02/top-best-healthy-natural-organic-energy-drinks-shots-sambazon/
