Do you want to start an energy drink company from scratch? Or you need a sample energy drink production business plan template? If YES, then i advice you read on.
Starting an energy drink production company is a good investment with a high Return on Investment (ROI) as there is a high demand for the beverage drink. The only major problem is that over a hundred brands of energy drinks are introduced into the market each year, and most of these companies go out of market before the year even runs out because of stiff competition
These new brands have to compete with major energy beverage brands that have been around a long while and most time, they can’t stand the competition. This information should not deter your plan of venturing into the energy drink market because you can do things differently and achieve better success. You have to give customers reasons to come back for more and retailers reason to stock your energy drink on their store over other brands of energy drinks in the market.
This article will serve as a guide to lead you on how you can start and run your energy beverage company differently; to stand the stiff competition in the market. You will also learn how to compel customers to keep coming back for your energy beverage drink.
Starting an Energy Drink Production Company – Sample Business Plan Template
1. Carry Out Market Research-: As I mentioned earlier on in this article, tens of energy drink are being introduced into the market each year, and most of them are pushed out of the market by competition. So to make your energy company standout and stand the test of time, you have to first and foremost carry out a market research on what consumers want. Knowing what they need will help you put together a product that they will find difficult to reject.
Since your product is energy drink, you have to pick people who drink energy drinks at least once a day; these set of people must have tasted different brands of the beverage and should be able to tell the difference between each brand. Then set up a focus group made of this category of people and ask them things they wished to be added to an energy drink, including flavour, packaging and price.
2. Develop a Business Plan-: At this stage, you should be done with your market research about what the consumers’ need; it is time to develop an energy drink production business plan inline with the information you have.
The business plan should contain basic information like your budget and capital (whether you will need to run the business alone or will you need to get business partners as financial investors), the number of employees you will need for starters, location of the company, mode for advertisement and provision for transportation from the factory to the wholesalers, retailers and consumers and finally, the company’s goal for at least the next five years.
3. Start Working On Your Brand-: The next thing you need to do after developing a business plan is to start working on your brand. By brand, I mean those things that will make your energy beverage stand out from other energy beverages in the market.
It includes your name, logo, taste of the beverages (the taste and flavour needs to be unique), packaging, (will the beverage be canned, or come in plastic bottle), the price per unit, the quantity of the drink that will be contained in a can. You must also note that the information you got from the focus group will be of immense help here when you working on your brand.
4. Produce the First Batch-: The worst mistake your company can make is to produce a large quantity of the energy beverage when there is no ready market for it yet. The wise thing to do is to produce the first batch that will be introduced into the market; you can start with the first five hundred to five thousand packs. How this first batch is accepted into the market will determine the size of the next batch to be produced. When the first batch is ready, it’s time to introduce the product into the market.
5. Getting Into the Market-: The first batch is ready to be introduced into the market, the question now is; how best to get the product into the market to make it become a household name? The first thing to do is to make a list of top hundred distributors or wholesales in your location and even outside your location; contact them and tell them about your new energy drink beverage.
However, you must bear in mind that you are not the first energy beverage company to contact them for the month, but you can give them a reason to make them want to buy your product. One way to go about this is that you can offer them promotional gifts to entice them to get your product.
For instance, any wholesaler that orders for over a hundred packs of your energy drink will be entitled to get a small refrigerator; this may be like a lot of spending for a product that is yet to be fully accepted into the market but trust me, when the product breaks into the market, you will not have need to offer gifts for people to come buy in bulk from you; the product will sale even without much advert.
6. Making It a Household Name-: At this stage, you must have succeeded in getting some wholesalers and retailers order for your product for distribution; it is time to get everybody know about your product and make it a household name.
The best ways to do this is via television adverts and radio jingles, offering different promos to buyers; like a buy one and get one promo or you can include some sort of numbers on the package, so that consumers can enter for a raffle draw using the number inside the pack.
At the end of the period, some few winners will awarded some prizes. Your company will definitely have to spend a lot to make the product a household product but immediately the product is accepted into the market, the profits will start rolling in and there will no need to spend much on adverts.