Are you about starting a bottled water production business? If YES, here is a complete sample bottled water production business plan template & feasibility report you can use for FREE.
Okay, so we have considered all the requirements for starting a bottled water production business. We also took it further by analyzing and drafting a sample bottled water production business marketing plan template backed up by actionable guerrilla marketing ideas for mineral bottled water production businesses. So let’s proceed to the business planning section.
Table of Content
- Executive Summary
- Market Analysis
- SWOT Analysis
- Financial Projection
- Marketing Plan
- Marketing ideas & Strategies
Starting a bottled water business is one of the best steps to take. This is especially so because of the level of profitability in the industry. One of the thing that you should look to do before getting your business started is to do some thorough ground work and write a business pln. Business plans play a huge role in the formation process of any business because it helps you to chart a good course for your business.
Writing a business plan may not come so easy, but you will need to write it any way. One of the things that could possibly ease the burden of the plan is using an existing template to write yours. Here below is a sample bottled water production business plan.
A Sample Bottled Water Production Business Plan Template
- Business Overview
Bottled water is one commodity that is consumed in all parts of the world and of course those that are in the business of producing bottled water are known to generate sales year in year out if the business is well – managed. As a matter of fact, economic downturn hardly affects the consumption of bottled water simple because it is a commodity that is as important as the air we breathe in.
Production companies in the bottled water industry basically purify and bottle water into plastic and glass bottles for consumption. The bottled water are properly capped and labeled accordingly before being sold to the general public. Companies in this industry usually have an assortment of water offerings, such as spring water, mineral water, sparkling water and flavored water in a range of sizes and prizes.
Players in this industry are also involved in the manufacturing of ice manufacturing. It is common to find big corporations who are into production of soft drinks and food and beverages engage in the production of bottled water.
Research conducted by IBIS World shows that in the United States of America, the level of concentration in the Bottled Water Production industry is modest, as the top four players are expected to generate 65.5 percent of revenue.
Given the heavy bulk weight of industry products and the relatively low value per unit sold, bottled water production is generally taken on by large companies with major economies of scale and heavy investments in transportation.
While the majority of bottled water production is performed as one of many activities within the corporate portfolios of international food and beverage companies, the remaining portion of the industry’s production is performed through small-sized local players.
The Bottled Water Production industry is a thriving sector of the economy of the United States of America and they generates a whooping sum of well over $5 billion annually from more than 565 registered and licensed bottle water production companies scattered all around the United States of America.
The industry is responsible for the employment of well over 14,360 people. Experts project the bottle water production industry to grow at a 4.0 percent annual rate. The Coca Cola Company, Nestle and Pepsi Co are the world leaders in the bottled water industry; they have the lion market share in the United States of America and in most countries of the world.
Despite the fact that there are big corporations who are into the production of bottled water, the fact remains that starting a small scale bottled water production business has minimal barriers to entry, with low start – up capital. Most players in the bottled water production industry are small- to medium-size establishments that cater to the local community.
With this kind of business, if you want to start on a small scale, you can choose to start servicing your local community. All you would need is contacts, packaging, networking and good marketing and customer service skills. However, if you intend starting it on a large scale, then you should consider spreading beyond your local community to state level and even national level.
Over and above, the bottled water production industry is a profitable industry and it is open for any aspiring entrepreneur to come in and establish his or her business; you can chose to start on a small scale servicing a community or you can chose to start on a large scale with several outlets in key cities all around the United States of America.
Bottled Water Production Business Plan – MARKET ANALYSIS
- Market Trends
If you are conversant with the trend in the bottled water production industry, you will quite agree that despite the fact that there are competitions in different stages of the industry. That is competitions amongst bigger corporations such as Pepsi Co, The Coca Cola Company and Nestle et al and also competitions amongst smaller and medium scale bottled water production companies.
Most bottled water company are leveraging on creativity in terms of packaging and marketing to continue to stay afloat in the industry. One creativity approach that is common is ensuring that their bottled water conforms to the appropriate PH – level.
As a matter of fact it is common to find bottled water production companies especially medium scale and small scale bottled water companies specially labeling their bottled water for specific occasions to meet the demand of their clients. For example, a client that is celebrating his or her birthday may strike an agreement with a bottled water company to specially label the bottled water that will be served in the occasion to conform with the occasion.
Lastly, another trend in the bottled water production industry is the adoption of eco – friendly approach towards the production and packaging of bottled water. As a matter of fact, the industry’s adoption of eco-friendly practices will likely persuade environmentally conscious consumers to buy its products, while increasing operators’ efficiency.
- Our Target Market
When it comes to selling bottled water, there is indeed a wide range of available customers. In essence, our target market can’t be restricted to just a group of people, but all those who resides in our target market locations.
In view of that, we have conducted our market research and we have ideas of what our target market would be expecting from us. We are in business to engage in wholesale distribution and to retail bottled water to the following groups of people;
- Restaurants and Canteens
- Event Planners, Parties and Corporate Functions
- Corporate Executives
- Government Officials
- Business People
- Military Men and Women
- Sports Men and Women
- Everybody in our target market location
Our Competitive Advantage
A close study of the bottled water production industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry.
We are aware of the stiffer competition and we are well prepared to compete favorably with other bottled water production companies in Bay Orleans – Massachusetts and throughout the United States and Canada.
Sparkles® Bottled Water Production Company is launching a standard bottled water brand that will indeed become the preferred choice of residence of Bay Orleans – Massachusetts and every city where our bottled water will be retailed.
Part of what is going to count as competitive advantage for Sparkles® Bottled Water Production Company is the vast experience of our management team, we have people on board who are highly experienced and understands how to grow business from the scratch to becoming a national phenomenon.
So also, the wide varieties of bottled water in terms of flavor, packaging and size et al that we produce, our large national distribution network and of course our excellent customer service culture will definitely count as a strong strength for the business.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (startups bottled water companies) in the bottled water industry, meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives. We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.
Bottled Water Production Business Plan – SALES AND MARKETING STRATEGY
Before choosing a location for Sparkles® Bottled Water Production Company and also the kind of distilled drinks to produce, we conduct a thorough market survey and feasibility studies in order for us to be able to be able to penetrate the available market in our target market locations.
We have detailed information and data that we were able to utilize to structure our business to attract the numbers of customers we want to attract per time and also for our products to favorable compete with other leading brands in the United States of America and Canada.
We hired experts who have good understanding of the bottled water production industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Bay Orleans – Massachusetts and other cities in the United States of America and Canada.
In other to continue to be in business and grow, we must continue to sell our products to the available market which is why we will go all out to empower or sales and marketing team to deliver our corporate sales goals. In summary, Sparkles® Bottled Water Production Company will adopt the following sales and marketing approach to sell our distilled alcoholic drinks;
- Introduce our bottled water brand by sending introductory letters to residence, bottled water merchants and other stakeholders in Bay Orleans – Massachusetts and other cities both in the United States of America and Canada
- Open our bottled water production company with a party so as to capture the attention of residence who are our first targets
- Engage in road show in targeted communities from time to time to sell our products
- Advertise our products in community based newspapers, local TV and radio stations
- List our business and products on yellow pages ads (local directories)
- Leverage on the internet to promote our bottled water brands
- Engage in direct marketing and sales
- Encourage the use of Word of mouth marketing (referrals)
Bottled Water Production Business Plan – Publicity and Advertising Strategy
Despite the fact that our bottled water production plant is a standard one with a wide range of bottled water products that can favorably compete with other leading brands, we will still go ahead to intensify publicity for all our products and brand. We are going to explore all available means to promote Sparkles® Bottled Water Production Company.
Sparkles® Bottled Water Production Company has a long term plan of distributing our bottled water in various locations all around the United States of America and Canada which is why we will deliberately build our brand to be well accepted in Bay – Orleans, Massachusetts before venturing out.
As a matter of fact, our publicity and advertising strategy is not solely for selling our products but to also effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Sparkles® Bottled Water Production Company;
- Place adverts on both print (community based newspapers and magazines) and electronic media platforms
- Sponsor relevant community programs
- Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, et al to promote our bottled water brand
- Install our Bill Boards on strategic locations all around major cities in the United States of America and Canada
- Engage in road show from time to time in targeted communities
- Distribute our fliers and handbills in target areas
- Position our Flexi Banners at strategic positions in the location where we intend getting customers to start patronizing our products.
- Ensure that our bottled water is well branded and that all our staff members wear our customized clothes, and all our official cars and distribution vans are customized and well branded.
Our Pricing Strategy
When it comes to pricing for products such as bottled watered, there are two sides to the coin. We are aware of the pricing trend in the bottled water production industry which is why we have decided to produce various sizes of bottled water.
In view of that, our prices will conform to what is obtainable in the industry but will ensure that within the first 6 to 12 months our products are sold a little bit below the average prices of various bottled water production brands in the United States of America. We have put in place business strategies that will help us run on low profits for a period of 6 months; it is a way of encouraging people to buy into our bottled water brands.
- Payment Options
At Sparkles® Bottled Water Production Company, our payment policy is all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that will be available in every of our outlets;
- Payment by cash
- Payment via Point of Sale (POS) Machine
- Payment via online bank transfer (online payment portal)
- Payment via Mobile money
- Payment via check (for wholesale distributors)
In view of the above, we have chosen banking platforms that will help us achieve our payment plans without any itches.
Generating Funding / Startup Capital for Sparkles® Bottled Water Production Company
Sparkles® Bottled Water Production Company is a family business that is owned and financed by Mark Harrison Clay and Family. They do not intend to welcome any external business partners, which is why he has decided to restrict the sourcing of the start – up capital to 3 major sources.
These are the areas we intend generating our start – up capital;
- Generate part of the start – up capital from personal savings and sell of stocks
- Source for soft loans from family members and friends
- Apply for loan from my Bank
N.B: We have been able to generate about $200,000 (Personal savings $150,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $300,000 from our bank. All the papers and document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
Bottled Water Production Business Plan – Sustainability and Expansion Strategy
The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.
One of our major goals of starting Sparkles® Bottled Water Production Company is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.
We know that one of the ways of gaining approval and winning customers over is to retail our bottled water and other products a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.
Sparkles® Bottled Water Production Company will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
Check List / Milestone
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Leasing of facility and construction of standard bottled water plant: In Progress
- Conducting Feasibility Studies: Completed
- Generating capital from family members and friends: Completed
- Applications for Loan from the bank: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of the Needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In Progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business both online and around the community: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Opening party / launching party planning: In Progress
- Establishing business relationship with vendors – wholesale suppliers / merchants: In Progress