Need 20 pages research paper on Market plan. This topic is related to MBA program. Attached sample document, need similar document with example.

Running Head: MKTG PLAN - THE BOSTON TEA 1

Business Plan: The Boston Tea

Team A

Executive Summary

The Boston Beer Company’s products are one of the most recognized brands in the alcoholic beverage market, especially in the craft beer market. But the trends in the craft spirit market are changing and we are on the verge of a change similar to the one the market experienced in the craft beer market 7 -8 years ago and the Boston Beer Company with it unique expertise can make a difference and substantial profits, as it did with the Craft beer market.

What we have accomplished?

The Boston Beer Company’s goal is to becoming the leading supplier of Better Beer market and we have become the largest supplier of quality craft beer. We are proud to have introduced into the market world-class variety of traditional and innovative alcoholic beverages under brand names Samuel Adams, Angry Orchard and Twisted Tea. The company’s growth has been fueled by both alcoholic and non-alcoholic beverage, but more so by the hard ciders. But the trends in the spirits market are on the cusp of a new change. The spirits market is going through newer disruptive new innovations. The Boston Brewing Company, with its unique expertise, experience of reshaping craft beer market can be a disruptive force in the Craft Spirit market.

Therefore, we propose to introduce a new craft spirit, a moonshine, under the name “THE BOSTON TEA”.

Who are our customers

Traditionally spirits have been consumer mostly by men, especially older men. But recently consumer interest has risen in moonshines and craft spirits. The consumers mostly young men and women between the ages 25-44 are increasingly gravitating towards the high quality spirits with unique flavors rather than just plain spirits. The increase in the number of manufacturers of moonshines in the southern United States and their popularity among the consumers reflects this trend (The Boston Beer Company, Inc., 2017)

How big is the market

The Spirit market in United States is approximately $7.5 billion in 2017 and the craft spirit market accounts for only 0.5% of the sales. But we need to remember that the craft spirit market has very near market origin. The global Craft Spirit markets is expected to grow at a staggering rate from 2017 to 2025 to more than $80 billion dollar business and United States is projected to account for nearly 53% of that sales. The opportunity for a tremendous growth in this market is potentially huge.

What’s our strategy goal

Boston Beer Company has always had the goal of becoming the number one producer of the quality beer in the better beer category and we accomplished this by offering customers unique and quality beer. We will employ the same strategy employed for the craft beer market i.e, make early inroads into the craft spirit market and garner a large market share. The strength of the Boston Beer company is in the quality of its products, the unique experience it offers, the distribution channels it has and strong relationships that it has with the suppliers, wholesalers distributors. We will leverage all these qualities to make inroads into the craft spirit market The (Boston Beer Company, Inc., 2017).

Introduction.

The Boston Brewing company, is the largest craft brewers in the United States. In 2017, Boston Brewers have sold approximately 3.8 million barrels of its products. The company since its humble beginnings has revolutionized the craft beer market. Along with the top 10 craft beer makers, it accounts for 30% of the U.S. Craft beer market. One of the corner stones of its philosophy is that “Change is good.” The Boston Beer Company would like to bring the same philosophy to the American Spirits Market. Therefore, The Boston Beer Company has decided to invest in the venture of brining in a moonshine local to the South Asian and African countries to capitalize on the growing interest of American consumers in the moonshine spirits. The name of the product will be “The Boston Tea”.

Why this business and Why Now?

Moonshine always had been part of American history. To rephrase Joe Michalek, president of Piedmont Distillers Inc., Moonshine embodies intrinsically American Spirit and its history. Moonshine had a very large impact on the heritage of America. Another important aspect of Moonshine is that it gives consumers of spirit experience that is very unique and euphoric. These two qualities are main reasons why Moonshines are showing a resurgence in the American Market. In October 2016, the American Craft Spirits Association cited 1,315 active craft distillers in the U.S., accounting for $2.4 billion in annual retail sales, a growth of 28 percent over the previous five years (Wolf, 2017). But of these Moonshine spirits account only for 0.5% of the $7 billion spirits market. Therefor the potential for growth is huge. They have come a long way since the days of prohibiton. People are showing interest in a product that was historically illegal. It’s a part of American history and people are queuing to experience it. We can incur this from the growth in the local moonshine distillers.

Who’s going to buy?

The company’s strategy is to market it new product, The Boston Tea, primarily in the metropolitan areas, women and younger demographics. Moonshines have garnered popularity in the Southern states of United States and have very little presence in the rest of the market regions. We are going to adopt the same strategy as we did with the craft beer market i.e, get into these markets early, leveraging our distribution network and garner a large market share.

Company Analysis

Origins and Background

The Boston Brewing Company was founded in 1984 by Jim Koch when he began the making the first batch of lager in his kitchen. From its humble origins, it had grown to be the most well-known and the largest craft beer brewer in United States. It went public in 1995. The company now has 1505 employees and has a market cap of $3.505 billion and trades at $300.90 per share as of June 6, 2018. Its head quartered in Boston, Massachusetts. In 2017, the company has sold more than 60 beers under Samuel Adams brand names, more than twenty flavored malt beverages under the Twisted Tea brand name, nearly 20 hard cider beverages under Angry Orchard name and five hard sparkling waters under the Truly Spiked & Sparkling brand name. It has reported that it had sold nearly 3.8 million barrels of its products(The Boston Beer Company, Inc., 2017).

Location

It owns breweries in 5 states in Boston, Cincinnati, Breinigsville, Los Angeles, Miami. The company’s beer products are graded to be in the better beers. Better beers tend to be of higher quality, image and taste than the premium beers. Better beers are approximately 29% of the United States beer consumption by volume. It has a brewery in Ohio where it produces non-core brands. The Boston plant is the first and the breweries in Cincinnati and Pennsylvania produce majority of the beer. It also had agreements with City Brewing Company, LLC in PA and La Cross in Washington to produce beer for it.

Suppliers

The main ingredients used its products, it sources from a multiple suppliers. The main ingredients it uses are hops, yeast and apples. But as per its reports for malt it sources it from a trusted single supplier. This reliance on a single supplier could be a problem for it in the long run.

Major Products and Strategies

The company’s main goal is to become the leading provider in the categories in which it competes. It offers high quality full flavored alcoholic beverages. Initially, it’s main focus is to increase the sales of its Samuel Adam’s brand supported by other complimentary brands. In lieu of this it launched the Angry Orchard brand family in 2011. It is the largest selling brand of hard cider in the United States. The Twisted Tea product was launched in 2001 and since then has grown steadily and has garnered loyal followers. In 2016, the company began selling Truly Spiked and Sparkling brand (The Boston Beer Company, Inc., 2017).

The products it sells are sold in various packages. It sells kegs for on premise retailers like bars, restaurants and bottles are sold in off-premise retailers. The company has made several innovations in packaging its products. It tests continually its beers, hard ciders and other alcoholic beverages. It has adopted a strategy of selling the products under various names to test them. It recently concluded as testing to enhance the experience of the beer drinkers. It will be using a container with opening that has an extended lip and an hour glass ridge(The Boston Beer Company, Inc., 2017).

Markets, Sales and Distribution

BBC, recently formed a subsidiary called A&S Brewing Collaborative to be a craft beer incubator. The main idea behind this is to find new opportunities in craft brewing. The company has around 350 wholesalers in the United States through which it does the distribution. The company markets is predominantly United States. But it also sells in Canada, Europe, Israel, Australia, New Zealand, the Caribbean, the Pacific Rim, Mexico, Central and South America. Boston Beers has a sales force of 415 people which is one of the largest in the domestic beer industry.

BBC reported a decline in sales in 2017 by about 6.2%. The company revenue decreased by 4.8% to $863 million. Boston Beer is projecting to return to growth.

Executives

James Koch is still the Chairman and Founder. David Burwick was appointed as the Chief Executive Office in April, 2018.

Market Definition, Potential and Demand

Market Analysis:

The Market: In this case, we are aiming at women in the metro areas and as well as small towns. Young people also would be enthusiastic to buy and try the product in the market and taste it. The word of mouth by young people is powerful and hence a lot of youngsters are going to be attracted and fall in love with the drink. The volume is going to be 200,000 gallons of Boston Tea. As we go by depending on the sales and consumers response the next production will be planned. The benefits of this drink and the fact that it is elicited out of a sap makes it very natural, it helps in digestion, makes a person active and energetic and at the same time does not taste as bitter as alcohol or other spirits.

Geographical area: The geographical area to sell is very vast covering United States of America, but the market is also in other countries like Canada, Europe, New Zealand, Mexico, and Central and South America. Mostly the product is shipped within few days of completion and there will not be any significant delay in product order. The company would be receiving most of its orders from domestic distributors for the following weeks of the months during the first week of that month.

Consumer behavior: Consumer behavior is expected to be consistent throughout. Consumers are not restricted to any age group, hence the consumers’ response to the market will be positive.

Because of its taste and the afterwards feel of this drink, there will be more demand. Nobody can stop with just one bottle or glass and hence the consumer rates would be getting higher and higher.

Market segmentation: Market is going to be split into segments, the customers of same taste and same age is how the market is segmented into. Gaps are not expected in the market. In the year 2017, the company brewed, fermented and packaged 90% of the volume at breweries that are owned by the company. $33 million was the capital investment in the year of 2017. Boston brewery’s production focuses mainly to develop and create new beers and hence rolling the new product into the market is not going to be a big or new task for the brewing company.

Potential: The Gross profit per barrel in the year ended in 2016 was $114.38. Gross margin for the year ending in 2016 was 50.7%. The company’s gross profit is expected to go high after launching the new drink as it is special and it is new to the entire country. The segments that are going to be distributed and going to make higher profits first, then the towns and suburbs. As the company includes freight charges. Boston Beer has a business power of around 390 individuals, which the Organization accepts is one of the biggest in the residential brew industry. The Company's business association is intended to create and fortify relations at the Distributor, retailer and consumer levels by giving instructive what's more, special projects. The Company's business constrain has an abnormal state of item information and is prepared in the points of interest of the blending and offering forms. Deals agents ordinarily convey tests of the Company's brews, hard juices and hard shimmering waters, certain fixings, for example, bounces and grain, and other limited time materials to teach discount what's more, retail purchasers about the quality and taste of the Company's items. The Company has created solid associations with its Distributors what's more, retailers, a significant number of which have profited from the Company's premium estimating procedure and development.

Demand: The actual demand for the product or service is yet to be determined based on the sales of the product once after the launch and the distribution and sales takes place. The demand is expected to be high and equal to that of beer since the drink consists of more alcohol percentage than beer and for the drinkers that is one main aspect in a drink while you select what to choose. The future demand is estimated to be higher than the current year. Future of the product in directly tied to the way we advertise about the product and how the consumers take it. It is not almost a 100% certain that the taste you like may be like I do not like how it tastes. This could be expected.

Competitor Analysis

Toddy palm is a drink originally from India even if the alcohol content is not too high, however, we are going to enhance the percentage to around 40% by purifying and extracting the liquid. The texture of toddy palm distinguished it from beer and wine, it’s more like Vodka or Rum.

Based on the products similarity, and the fact that there isn’t any similar product that in retail industry in the united States, we narrow down the competitors into three main brand/products: two brands of Vodka and Sake.

1. Tito’s Vodka

Tito is not a very new company, it was established in the early 90s at Austin, TX, which is only a fewer years younger than Boston Beer Company, but not very well-known until the recent years. There backgrounds similarity is one the reason the we think Tito’s is a potential competitor.

Tito’s Vodka is hand-crafted, same as traditional Toddy Palm: the palms was hand-picked by tribe people in India and fermented. The philosophy behind it is overlapped.

Thirdly, Tito’s is focusing on the sports fans marketing, Boston Beer Company has the same strategy as the official beer provider with Red Socks. As a Texas based on liquor company, Tito’s have partnerships with many local professional sports team. The most successful case among all the marketing moves is the cooperation with the Houston Rockets, the local NBA team in Houston, TX.

1. Gray Goose

Gray Goose is not the top Vodka brand now but it was once, however, is still the most well-known one and is the NO.1 choice of many bars & clubs as the vodka provider.

Beside the pure vodka, it has different flavors too: Grey Goose Cherry Noir is a black cherry-flavored vodka, Grey Goose L'Orange is an orange-flavored vodka, and the now-retired Grey Goose La Vanille tasted of vanilla, with hints of cinnamon and caramel (Foley, 2006). Extracted Toddy Palm has coconut flavor, which makes them the similar products.

The facts that Gray Goose has high reputation, and it is in most of bars, it has already occupied a huge liquor market which makes it is our competitor.

1. Sake (the type, all brands in America)

Sake, a traditional local liquor from japan, is popular in America now and be accepted by many Americans as exotic drink. In American market, there are too many different brands and companies offer Sake, we wanted to treat the whole category as competitor.

Firstly, Sake has great story and culture from Japan, so does Toddy Palm in India. Sake is made from rice. In Japan, sake has been consumed since ancient times (Chang, 2015). Toddy Palm is from India which is also has an attractive background that could be used to market the product.

Secondly, the traditional way to drink sake is with Japanese sake cups by sipping it, however, now days Sake can event be use is a material to make cocktails and the recipes are everywhere on the internet. To make cocktail is also one of the purpose of drink Toddy Palm.

Sake’s success is high relative with the Japanese food too. Japanese food could be really expansive and could showing American’s great food taste, the combination of Japanese food and drink makes it really popular in America especially in big cities on east and west coast.

Industry Analysis

Rivalry Among Existing Competitors

With recent interest in public in moonshine spirits, many distilleries have come up in the Appalachian region. The popular existing competitor in the Southern United States are Ole Smoky Moonshine Distiller based out of Gatlinburg, Tenn. Palmetto Moonshine started selling moonshine in 2011. Other moonshine distillers have been started all over Appalachian region. Recently Jack Daniels has decided to enter into the moonshine market. But none of these existing producers are deemed competitive as these manufacturers are very regional in their market and do not have distribution channels and the production capabilities of the Boston Brewing Company.

Once the existing competitors develop the production and the marketing capabilities of the BBC, it might lead to price war but the near occurrence of these price war is remote. Price war as a result of the production of similar product by much larger manufactures like Jack Daniels is a possibility. Also, BBC has a very loyal customer base. The threat of the existing competitors to this customer base has to be taken into consideration. This market offers huge growth potential and the loyalty towards competitors brand is not considered a threat.

Bargaining Power of Suppliers

The raw material required for the production of the product is indigenous to South East Asian countries especially to the South Indian region and Indonesia. The process of extracting the raw material is done locally by people and sold to the local distributors. These suppliers do not have any kind of leverage on the price of the raw material. The export of the product to the out of the region is virtually non-existent. The local governments have established channels and non-profit organizations to be able to access these distributors. The Boston Brewing Company will have all the leverage it needs it fixing the price for the raw material collection and supply. The local governments are giving duty free incentivize the export of the material. The company is in a good position to leverage these incentives.

Bargaining Power of Buyers

The Boston Brewing company has access to approximately 365 distribution channels. The customer relationship with these distributors and the company are very strong and the BBC will be able to negotiate and extract profitable price for the product. As per the sales records, the single largest distributor accounted for 6% of the revenue and the top 3 distributors accounted for nearly 12% of the revenue, these distributors may have some leverage on the price of the product. Since the product is being distributed to only these channels and opportunity for market growth and revenue are considerable and the BBC being the only company selling this type of product, the threat of the bargaining power of these buyers is considerably from other distributors is less.

Not too many competitors exist in the market for the product we are introducing. Therefore this aspect is not considered to have any significant effect. The low price of the competitors and additional value offered by competitors selling other spirits can be threat. This has to be considered in the price of the product.

Threat of New Entrants

The target population for the new product are young people, women and people living in major metropolitan areas, where The Boston Brewing company has been traditionally strong and has a loyal customer base. Since the products against which this product is competing are traditional spirits and other moonshine manufacturers, the threat of new entrant is low as the barriers to entry are high. The threat that arises from the local distilleries is not considered to be significant. Also, few player exist in the market. As the awareness of the product grows, sales and the profitability will increase, the profitability will also increase. Currently, the market is only 0.5% of the $7 billion of the total spirit market, the potential for growth is huge.

Threat of Substitute Products or Services

Competition from the traditional spirits is considered to be the major threat. The big player producing whiskey and other spirits will pose significant challenges in expanding to new areas and willing over new customers. As the popularity starts to increase, the efforts by the big players will be to prevent the customers from switching their loyalty. This will impact the growth aspect of the sales. BBC has a very loyal customer base in some major markets and demographics.

Customer Analysis

The traditional demographics which showed interest in these type of products are older generation, people from semi-urban and rural areas. But the millennial generation and people from urban and metropolitan areas, as found by the distillers, are found to be showing increasing interest in these type of drinks. The secondary market data shows that people in the age of 21-35 year age group are embracing the spirits category and brown spirits. As the demand for the spirit increases, the demand for these drinks is bound to increase as well.

The main group of people which BBC is targeting are women, young people in between the age of 21-44 years and people in big metropolitan areas. The report on Global Spirits market has provided us with an analysis of the market. It covers the craft spirits market. Since the product is considered to be a craft spirit, the trends in craft spirit market will reflect the sales of the product.

The global craft spirit market is valued at $80.43 billion in by 2025 and is expected to grow at 33.4% from 2017 to 2025. Millennials born between 1980 to early 2000’s represent major demographics section of consumer who are showing interest in the craft spirits. The Young millennials who have reach the LDA, appear to be the high potential consumers for the craft spirits. Also, the preference of these young millennials is found to be unconventional drinks which have a unique tastes and flavor. The craft spirit market is predominantly located in the United States of America accounting for 53% of the craft spirit market. Specialty spirits are found to be most popular spirits followed by Whiskey and Vodka.

Men are driving the alcohol beverage market. In Spirits market, the consumers are seeking products, especially people aged between 21-35, that are superior in quality and offer a superior experience and enjoyment. Its men who are over consuming spirits, but female consumers are showing keen interest in this market too.

Health is becoming increasingly influential across the entire alcohol beverage market. As, the craft spirits popularity is rising, people especially women are seeking healthier options. Consumers are increasingly want careful formulation. Therefore, increasing the premium offerings can drive the successful growth of the product.

SWOT Analysis

SWOT analysis is provided, based on the preceding analyses. Reasoning for each item in the SWOT is provided and logical. Strengths and weaknesses are clearly internal factors, and opportunities and threats are clearly external factors. SWOT Analysis for Boston Beer Company in the United States of America. A SWOT analysis can help to spot the opportunities that the new venture can take the benefits by taking advantage to make the highest level of benefits possible. Generally, changes in the market and consumer trends contribute towards the external factors in creating opportunities. for this proposed new venture affect the performance of the company and measure. For the new product launching, four marketing standards for price, product, sales and promotions need to be studied. To analyze these standards areas, strengths, weaknesses, opportunities and threats to examine the risks involved and strengths. The strengths, weaknesses, opportunities and threats will be identified for the new product based on the existing data (Argersinger, 2010)

SWOT Analysis

Competition

Marketing Objectives and Goals

Currently the Boston Beer Company’s target market is woman and young people, and also, the sports fans. As an intrepreneur venture, we are going to take advantages by targeting the same market since there are massive existing recourses we could use. I’ll analyze each target in the following contents:

1. Sports Fans

Sports culture is special and unique in America, and people are used to have a drink while watching the game. As we mentioned in the plan earlier, vodka companies, for example, the Tito’s, has chosen to promote their product to the sports fans by having partnerships with different sports teams and serving their vodka in the house.

Boston Beer Company has already developed market in the similar but more bold way- Boston Beer Co., signed an eight-year deal with the team that will last through the 2025 season (Adams, 2017).

By using the current recourses and element Boston Beer Company has gained from Red Sox, we could reach to our target market by:

• Serving the product in the arena

• Put the product advertisement in the signage on the court

• Purchased the additional marketing rights from Red Sox to make our product the “official toddy palm of the Red Sox”

1. Woman

Speaking of the reason of woman drinking wine, many people know that “beauty function” is one of the biggest reason and people are believe in the theory.

The toddy palm has multiple functions and has many nutrition inside: it has huge percentage of protein, Vitamin C, Zinc, Iron, Vitamin B group. Palm could improve eyesight, reduce the risk of cardiovascular disease, prevent cancer, enhance the skin, and promote lactation.

With massive goods inside, combine with appropriate advertisement and to choose a young beauty as the spokeswoman, and fruit taste natural flavor, we are confidence that we could reach to women successfully.

1. Young People

According to a research on study the motivation of people to drink, Accordingly, four categories of drinking motives emerge as final antecedents of drinking behavior:

• drinking to enhance positive mood or well-being

• to obtain social rewards

• to attenuate negative emotions

• and to avoid social rejection

Young people always seeking new adventures, they have desire to try new things and want to be cool, they have all the traits of the motivations listed above, which is a perfect target group of our product.

Other than the motivations and natures, another benefit and reason to target young group is that young people’s financial level match our product price too: we are a branch of a regular beer company, not a high-end brand, we will make de retail price at medium level among the liquor market.

Besides, as we mentioned in the analysis of Sake, it is popular because it can also be a material of cocktail and young people like it. Our product is able to make cocktails too, which makes young generation our perfect target.

From the positioning, since our material is not high-end and brewing technology is not very difficult, also considering the income level of our target marketing, our product will be made for middle and middle-low class people, a little bit lower than regular vodka but the price could encourage people to accept it

Marketing Strategy

Having a solid marketing strategy will only pay back the time and money invested in the launch of the new product into the USA market. Targeting demographic area is less important compared to the target group. Identifying the target group and the area they mostly live will help to get the new product sales.

As the target group are the people between 21- 35 years old who are adventurous, willing to try new exotic alcoholic drinks and drinks with high alcohol content we will create buyer persona using online technology. The millennials have growing taste for and value authentic crafted alcoholic drink from the report presented by 2016 Trend Insight report (Arthur, 2016). The buyer persona will help to know the customers.

Researching the competitor. The type of marketing ways they choose, pricing of the product and their loyal customers will help us to keep to the standards of marketing to be able to reach the target group.

Boston Beer Company will participate in tasting festivals, festivals and be able to earn place on shelves in popular supermarkets and bars in the country. Boston beer company is known to invest good amount of their revenue in advertisements. But, using the brand label we can offer sample tasting to the loyal or existing customers and if they like the product we will gain free word of mouth advertisement. We will also invite tastemakers in the alcohol beverage industry, like mixologist who can spread the message and be brand ambassadors

Target Market and Positioning

Currently the Boston Beer Company’s target market is woman and young people, and also, the sports fans. As an intrepreneur venture, we are going to take advantages by targeting the same market since there are massive existing recourses we could use. I’ll analyze each target in the following contents:

1. Sports Fans

Sports culture is special and unique in America, and people are used to have a drink while watching the game. As we mentioned in the plan earlier, vodka companies, for example, the Tito’s, has chosen to promote their product to the sports fans by having partnerships with different sports teams and serving their vodka in the house.

Boston Beer Company has already developed market in the similar but more bold way- Boston Beer Co., signed an eight-year deal with the team that will last through the 2025 season (Adams, 2017).

By using the current recourses and element Boston Beer Company has gained from Red Sox, we could reach to our target market by:

• Serving the product in the arena

• Put the product advertisement in the signage on the court

• Purchased the additional marketing rights from Red Sox to make our product the “official toddy palm of the Red Sox”

1. Woman

Speaking of the reason of woman drinking wine, many people know that “beauty function” is one of the biggest reason and people are believe in the theory.

The toddy palm has multiple functions and has many nutrition inside: it has huge percentage of protein, Vitamin C, Zinc, Iron, Vitamin B group. Palm could improve eyesight, reduce the risk of cardiovascular disease, prevent cancer, enhance the skin, and promote lactation.

With massive goods inside, combine with appropriate advertisement and to choose a young beauty as the spokeswoman, and fruit taste natural flavor, we are confidence that we could reach to women successfully.

1. Young People

According to a research on study the motivation of people to drink, Accordingly, four categories of drinking motives emerge as final antecedents of drinking behavior:

• drinking to enhance positive mood or well-being

• to obtain social rewards

• to attenuate negative emotions

• and to avoid social rejection

Young people always seeking new adventures, they have desire to try new things and want to be cool, they have all the traits of the motivations listed above, which is a perfect target group of our product.

Other than the motivations and natures, another benefit and reason to target young group is that young people’s financial level match our product price too: we are a branch of a regular beer company, not a high-end brand, we will make de retail price at medium level among the liquor market.

Besides, as we mentioned in the analysis of Sake, it is popular because it can also be a material of cocktail and young people like it. Our product is able to make cocktails too, which makes young generation our perfect target.

From the positioning, since our material is not high-end and brewing technology is not very difficult, also considering the income level of our target marketing, our product will be made for middle and middle-low class people, a little bit lower than regular vodka but the price could encourage people to accept it.

Operational Plan

Operational sections has two parts. Stage of development and production process section. Stage of development

Production workflow: The conditions required for converting the palm sap to fermentation to alcohol are old and well known. The source of raw material is Palm sap from Africa/Asia/South America. The palm sap is collected in containers that are free of any microbes stored in cooling conditions (below 10 degrees) to slow the fermentation process. Once the raw material reaches the site of production unit in USA, it will be transferred into fermentation units and after the processing it is tested and further bottled. We would infuse 5 ingredients in our liquor for 2 months before bottling that will be in bottling units within MA location.

We plan for 350 mL and 50 mL bottles to launch initially in the market. Each batch of the alcohol distilled to get high quality, to sell as premium spirit will be stored in French oak barrels for aging. Quality check and assurance will be done on the distilleries before bottling following the standards.

Production Process

Physical location will be the brewing units located at Massachusetts. Licensing of liquor and trade will be worked on before start of any production process. The new product, palm wine will be registered under a brand name. Angry Orchard Innovation Cider House located at the Orchard in Walden, New York, will be used for sample brewing and conduct market taste testing events initially.

The Company’s Angry Orchard Innovation Cider House located at the Orchard in Walden, New York, opened in 2015 and its production is mainly for developing new types of innovative hard ciders and fermenting and packaging ciders for retail sales on site and in the local market area.

For the palm wine packing we have a new bottle design and the label that will have palm tree symbols on it. Boston beer company sale to almost 350 wholesalers in USA and sale its products to few countries outside USA like Mexico, Australia, New Zealand, and Canada to mention some of the countries (2017 Annual Report). We would like to launch the palm wine in USA first to make it reach to the targeted customers. The logistics of Boston beer company is well operated already. The freshest beer program was a successful program with almost 17 distributors to be able to deliver products in shorten time frame between the time of ordered to shipment. Using this program, the palm wine will be shipped within less time to be able to be satisfaction customers and improve business.

SWOT Analysis of Tilt Drink with USP, Competition, STP (Segmentation, Targeting, Positioning) - Marketing Analysis

SWOT Analysis of Palm Wine

Palm Wine Drink

STP

HR Plan

HR plan is the fundamental of building a new business administration, by planning the arrangement into many details the exestuation process will be easier with suitable employees.

1. Recruiting Strategy

Boston Beer Company have many lines of making beers, but the process of making Toddy Palm is different. However, the new process is new to everyone, the current employees should have more sense of making alcoholic products.

Besides the core brewing technology employees, other positions do not require the special skills, we will recruit them from the outside because they won’t confuse the concept between the existing beers and Toddy Palm.

1. Employee Distribution on Different Levels

2018-19

2020

1. Employee Training Plan

The training purpose is different for different positions. For most positions, they will spend 5 days to be familiar with the product line and 3 days to learn the market. However, because of the job required the employees to directly in touch with the product and create revenues with it, we have a special training program for Tech, Sales and Marketing people:

• Day 1-3: Fly to India to understand the culture

• Day 4-19: learn the tech of brewing and managing

• Day 20-21: Learn the target marketing with Boston Beer Company seniors

Financial Analysis

Financial analysis refers to an assessment of many key factors which are quite important to the business or sub-business or project namely the viability, stability and profitability. It is also referred as “Account Financial Statement Analysis” or “Accounting Analysis or Analysis of Finance”. A financial analysis is performed to query stability of an entity, solvent, liquid or profitable enough to guarantee a monetary investment. For a startup brewing company a financial analyst conducts the analysis focusing on income statement, balance sheet and cash flow statement(Staff,2018).

On the other hand, Pro forma Financial statement or simple Pro forma analysis is a statement based on certain assumptions and projections. It is used to prepare the projected balance sheets, income statements and cash flow statements. For example, it is used when a corporation want to see the effects of three different financing options(Averkamp,2016)

In simple terms it is a a forecast usually created from pro-forma financial statements and forecasted using basic forecasting procedures. Revenues would provide initial groundwork for forecast and expenses and other items are calculated as a percentage of future sales. They usually reflect the predicted state of the business after a major transaction has occurred in the business(Staff,2018).

For a Beer Brewing company the financial plan should have the following elements while designating a plan. This is the financial analysis plan adopted by “Sedibeng Breweries” and is most compatible with our Start Up Brewery Plan

Assumptions: Every business should definitely have some assumptions to start off laying out a financial plan. We assume a strong economy without major recession and also there are no unforeseen changes in economic policy like taxes, restrictions and ingredients ban etc. to make our products obsolete. We need to designate the plan for a particular time period so that we don't have to worry about designing it again. Let's say that we are assuming for a time period of 3 years with a monthly analysis.

Break Even Analysis: Based on the running costs that is a summation of costs to keep the business running, including salaries and wages, rent, water and electricity, insurance etc. we prepare our Break-Even Analysis. Many of the fixed costs are included in these costs. Our primary aim is to ensuring sales levels are running comfortably above break-even. The following chart describes our break even analysis. From the chart we can observe that fixed costs account to $41,040 per month and $93,000 is required to cover our costs. It would a take a few months to reach break-even through our business operation.

Revenue Projections: For a brewing company there would be every need to identify the revenue projections. According to Projection Hub there would be four revenue line items which would be relevant and of good income scope for a new start up brewery. They are

Keg Sales: Sales to Restaurants and Bars

Growler Sales: Retails Sales to Walk-In Customers

Bottle/Can Sales: Wholesale to Retail Stores

Retail Sales : Walk in Beer Sales having Tasting Room or Restaurant(Unknown,2016)

Project Profit and Loss: According to the Pro forma Analysis done by the “Sedibeng Breweries”, the projected profits if we manage to break even controlling incurring costs and sales with using marketing analytics then at the end of first year there would be a profit of 7.75%, second year would be 9.81% and third year would be 9.59%(Software,2015).

Pro Forma Profit and Loss

Pro Forma Cash Flow

Pro Forma Balance Sheet

Ratio Analysis

Proforma Sales Forecast

Risk Assessment Plan

In general, for an industry or company or facility, Risk Assessment is determination of quantitative or qualitative estimate of risk related to a well-defined situation and a recognized threat. Risk assessment could be a general term used across several industries to work out the chance of loss on a selected plus, investment or loan. the method of assessing risk helps to work out if an investment is worth it, what steps could also be taken to mitigate risk and, through specific ratios, the top side reward compared to the danger profile. It determines what rate of come back is important to form a selected investment succeed.

Business risks run an oversized cross-section including, however not restricted to: new competitors coming into the market, employee theft, information breaches, product remembers, operational, strategic and monetary risks, and even natural disaster risks. each business ought to have a method in situ to assess its current risk levels and place in place procedures to mitigate the worst attainable risks(Staff,2010).

For our startup brewing company there would be probably three kinds of risks associated with it namely Financial Risk, Hazard Risk and Compliance Risks. Three of these risk in the long run determine the profits associated with the Brewing Company

Financial Risk Assessment

According to Lagunitas Brewing Company Case Study, there is a huge impact of collection days on the profits of breweries. To keep the collection between one to 30 days is the most optimal choice. Lagunitas Brewing Company couldn't keep the profits for years along because of the collection days was always above 60 days(Unknown,2016).

The market and losses incurred because of misinterpretation of cash flow analysis are huge. You can sell millions of barrels every year and still would fall into negative cash flow. You would fall into negative cash flow while you cannot pay your monthly fixed costs while waiting for account receivables(Gulley,2012).

Hazard Risk Assessment

The production of brewage and spirits produces solutions of plant product, which is a extremely ignitable liquid in associate degree undiluted state and even in resolution. Raw materials for fermentation and mashing processes involve the handling, storage, and edge of wheat and barley, that generate flammable mud, whereas grain cookery and drying need large quantities of fuel, which is usually fossil fuel. Hence, all kinds of flammable materials (vapour, mud and gas)necessary for hearth and explosion ar gift in brewage and spirits producing facilities.

According to majority breweries and distilleries in the UK, there are some simple steps to prevent and alleviate risks associated with hazardous materials. The following materials should be documented

1.Ignitable materials on brewery site

2.Hazardous Area Classification (HAC) for all areas

3.Assessment of ignition sources and their elimination in unsafe areas

4.Assessments for “equipment” (i.e. mechanical and electrical equipment)

5.If ignitable atmosphere(s) and or ignition sources cannot be eliminated

6.Explosion protection in conjunction with explosion isolation is critical.

To show compliance with the law, for existing plant an acceptable hazard and risk assessment is critical, that ought to document the following: ignitable materials on every method needs a “Basis of Safety”, For each traditional and expected abnormal operation, which can be:

a) rejection of ignitable atmospheres, and/or

b) rejection of ignition sources,

c) If a) and or b) aren't appropriate, then explosion protection with explosion isolation is needed. Corrective recommendations, if necessary, should be enclosed in every section by the assessor. However, in addition to this principles hazard risk assessment team should be on watch to prevent any hazard immediately.

Compliance Risk Assessment

To assess the compliance risk hiring a third party, like Safe Link Consulting etc., to perform the compliance risk assessment onsite during a distillery real time functioning is the best chance to evade any fines and bad reputation later. The Compliance Risk Assessment should cover federal and state Occupational Safety and Health Administration standards for breweries, FDA distillery compliance. The assessment is for varied examples like Quality System necessities, and any distillery / drinkable state legislative necessities. Time to Time Compliance Risk Assessment and marketing such strategy would put the startup in a good reputation within the consumer and retail companies(Laura,2017).

Harvest Strategy

A harvest strategy is a plan in which there is a reduction or a termination of investments in a product, product line, or line of business, to reap the maximum profits. It is typically employed toward the end of a product's lifecycle when it is determined that further investment will no longer boost product revenue. A harvest strategy may involve the gradual elimination of a product or product line when technological advances render the product or line obsolete(Staff,2018).

Harvest Strategy for Long Term Business Plan

For our company the harvest strategies would be let’s consider the plan of “Billow Breweries” partially which referred the harvest strategies in three main steps

1.Releasing and marketing a signature brew beers and drinks

2.Making a Fan Base through Rewards Membership

3.Accepting any collaborations with the larger brewing companies like Sam Adams, Anheuser-Busch, or SABMiller.

By using these harvest strategies, the startup company would never run out of profits to losses. With the current trends of Beer Behemoths acquiring individual startups, there’s a huge chance for every startup beer companies to enjoy a huge success in long term business(Staff,2018).

Milestone Plan

1. Sourcing: To identify the sources where the palm trees are, and if we can elicit the palm wine from those trees. Usually the tropical regions do have palm trees and hence got to keep the key source as one of the regions that have the palm trees. Countries in Asia, Africa, Caribbean and South America all have palm trees and we could definitely source the raw material from these regions.

2. Distillation: The distillation process is done in the Boston brewing company, the machinery that is not being used will be put into use to perform the distillation process of the palm tree wine. This process can take up to a long period of time. The distillation process makes the drink stronger than it originally is when extracted from the trees.

3. Packaging: The packaging process is different for The Boston Tea from the parent Boston brewing company, the bottling is is done differently for this drink and the shape of the bottle is different from the default bottles made by the Boston Brewing Company for its beers and ciders.

4. Distribution: most of Company's sales are made to a network of roughly 350 wholesalers in the United States and to a system of remote wholesalers, shippers or different offices (altogether alluded to as "Merchants"). These Distributors, thus, pitch the items to retailers, for example, bars, eateries, basic need stores, comfort stores, bundle stores, stadiums and other retail outlets, where the items are sold to consumers, and in some constrained conditions to parties who go about as sub-merchants

5. Supply: The cycle and process of making the product available to the consumer does not end at distribution. The process keeps continuing and as the product reaches out to the consumers and needs more supply due to the demand the whole process and steps involved in the milestones are involved again. Hence the process is repetitive.

Reference

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