BUS599 ASSIGNMENT 3 PART 2

Healthy Shakes
Assignment 3 Part 2: Business Plan – Draft
This assignment consists of two (2) sections: a draft of your business plan and an income statement containing your business plan financials (i.e. Week 7 Discussion "The Financials"). Note: You must submit both sections as separate files for the completion of this assignment.
You must intend to raise money for your startup company. You can start with money from friends and family but at some point, you will need funds from outside investors, either angels or venture capitalists, depending on how much money you project you will need to raise. Another possible angle is to develop money through crowdfunding, assuming your product meets the demand of such audiences.
Before you can raise money, you must develop a business plan that convinces an investor that your company will succeed.
Section 1: Business Plan (MS Word or equivalent)
Read Chapters 18 and 19 of the course text: Successful Business Plan. Use the Plan Preparation Forms at the end of each chapter of Successful Business Plan as a rough guide.
Write an approximately fifteen to twenty (15-20) page draft of your business plan in which you:
1. Revise the components of the following previously submitted sections based on the feedback you have received.
1.
a. Company Description (Assignment 1) Provided/attached
b. Industry Analysis and Trends (Assignment 1) Provided/attached
c. Strategic Position & Risk Assessment (Assignment 1) Provided/attached
d. Target Market (Assignment 2) Provided/attached
e. Competition (Assignment 2) Provided/attached
f. Marketing Plan & Sales Strategy (Assignment 2) Provided/attached
2. Create an Ethics & Social Responsibility Plan.
Note: The Ethics & Social Responsibility plan should account for approximately three to five (3-5) pages of the Business Plan Draft.
2.
a. Describe the ways in which your company is committed to being a good corporate citizen.
o
 Hints: Consider the following areas:
 Creating jobs
 Following the laws of every jurisdiction in which your company operates
 Fair and honest treatment of employees
 Non-discrimination of employees and increasing diversity of your work force
 Hints: If your company is designed as a social venture—in which you have a primary purpose of achieving a social or environmental goal—describe what that goal is and what aspects of your company are designed to reach that goal. Provide a rationale for why you have or why you have not chosen this to be a social venture.

1. 1. Discuss how your company’s activities will affect the environment and identify the steps you will take to mitigate any negative impacts.

• • Hints: As a beverage company, consider such issues as your choice of packaging, disposal of bottles / packages by consumers, and your use of resources, such as water in areas where water may be scarce. 

1. 1. Determine any health issues / claims related to the product you are making, whether negative or positive. Suggest the strategy your company will use to mitigate any negative issues, and to ensure any positive claims are true.

1. 1. Many beverage products have negative health impacts on certain segments of a population (e.g., children, pregnant mothers, etc.). Suggest your company’s plan, through advertising, distribution, and / or other methods, to target and reach only appropriate market segments.

1. Format your assignment according to these formatting requirements:

   1. Cite the resources you have used to complete the exercise. Note: There is no minimum requirement for the number of resources used in the exercise.

   2. Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; references must follow APA or school-specific format. Check with your professor for any additional instructions.

   3. Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required page length.

Section 2: Business Plan Financials (MS Excel worksheets template)

4.For year one, revise and submit the Income Statement, Cash Flow Projections, and Balance Sheet sections from the “Business Plan Financials” MS Excel template (see: Course Required Files in Week 1).

This is a company that focuses on production of healthy fruit and vegetable shakes for the consumers. As the name itself suggests, ‘Healthy Shakes” simply means that the products produced are in accordance with the health standards stipulated by the law and on top of that, the products used in the production are pure and natural blended fruit which come with the fresh farm vitamins that a great portion of the world population today never gets a chance to taste. Hence, the name is significant in that it describes the whole purpose of the beverage in just two words. The mission statement for the Healthy Shakes Company is: To nurture good health of the global population - one natural drink at a time. The mission generally puts into light what the company wants or is dreaming of accomplishing. Healthy Shakes uses only natural fruits and vegetables for the beverages produces with the purpose of providing healthier refreshments at affordable prices in this global market which has been flooded by harmful industrial beverages. This is driven by its purpose - making the world healthier (Kelly Holland, 2007).

Trends in the industry

The non-alcoholic beverage industry has had a drastic change in the recent years. The beverages that were once worshiped were those that were industrial and the low prices pulled a lot of customers to purchase them. But now, consumers have begun to care about what they take because of the increasing cases of disease such as diabetes and food chemical induced disorders. This makes people look for healthier options to quench their thirst other than the pure water, and “natural” has become the most significant pull of consumer market even in the non-industrial beverage industry. Some of the reason for choosing this particular type of non-alcoholic beverage include the fact that there is profound need for such a product in this market. Secondly, there are no costly scientific issues to be managed for increased nutritional values, just know your farmer. According to Mintel, an analyst from market research, close to 69% of the consumers agreed such drinks are more efficient nutrient sources even compared to whole meals. Lastly, with this kind of beverage, even with little marketing, the product still sales as it stands out from the competition of industrial products flooding the market today. This can be supported by a statement by Wayne Lutomski, the vice president of Welch’s Global Ingredients Group saying that within the category of healthy beverages, there is an increase in demand which is driven by the consumer demand to improve wellbeing with a healthy lifestyle (Sean, 2016).

Strategic position

The strategic position that as the best regarding the product of the Healthy Shakes Company is the one of customer perception. This is a concept in marketing comprised of the impression of the customer, the awareness and consciousness about a company or what the company offers. This is usually affected by some factors such as social media and also customer experiences. In this case, the company would exploit this position through creating better packaging for the product, one that represents the beverage being natural. Then ensure that the customer would enjoy the beverage through providing of a range of flavor they can choose from. Proper advertising and sales advertising through the social media will go a long way in ensuring capturing of a larger market share, but most importantly, ensuring that the customer experiences are worthwhile on purchase will bring growth (Kuester, 2012).

Heathy Shakes, Inc. is a startup company headquartered in Jackson, Mississippi, in the State of Mississippi. Heathy Shakes Company specializes in non-alcoholic beverages and an array of associated snacks. The target market for Heathy Shakes Company is the residents of Jackson. The company deals with healthy shakes, natural ingredients, which is a fruit juice extract from natural fruits. This juice contains no added additives and chemicals. It is served as received from the nature.

Healthy Shakes will focus it’ target market on the whole entire state of Mississippi although, Healthy Shake primary target market for its product will be amongst the capital city of Jackson that according to the latest censure is a population of 173,514. Adults will love while considering that almost all the fruit juices in the market are chemical based, people with a strong dislike for chemical-based foods will opt for this Healthy Shake. In the state of Mississippi, the has a population of 2.9 million people with numerous business and according to last year censures the total was around 235 thousand business. Healthy Shakes aims to target those who seek a healthier life style, those in our school, our large food chains, fitness center and many of our local stores. There is no age limit to be healthy however, I believe my product, Heathy Shakes will have a high selling rate among the young people between high school and college age, both men and women in the prime of life (Rabin & Rabern, 2016). Due to the emergence of many food-based illnesses and the linkage of most foods to illnesses such as cancer, these consumers will want to healthy drink. The Heathy Shakes, as is referred to, will be the major brand for this company. This shake will be packed in containers of varied sizes in order to meet the needs of various people. They will be differentiated by having different tastes and flavor including the beetroot flavor, strawberry flavor, pineapple flavor, kiwi flavor, cider flavor, mint flavor, watermelon flavor as well as a mixed fruit flavor which will be a mixture of different fruits.

Heathy Shakes Company will use two methods of supplying the Jackson market with their products. The first method and which will be the dominant of the two is the Direct-Store-Delivery (DSD) method. The second distribution method is the Manual Distribution Center (MDC) which will be charged with transporting Heathy Shakes through the densely populated regions within Jackson city.

Heathy Shakes Company will face stiff competition against large brand companies such as; Natural Juices, Green Tea Juices, and Smoothie King when you are just newly starting a business up against these companies that has already made a name for themselves around the world and practice numerous product diversification to cater for all consumers.

It is intimidating to compete against these giant brands. However, Heathy Shakes Company has taken a route that will prove successful. Heathy Shakes will market itself as the healthy option, educate the people on the dangers of consuming processed sugars in drinks and the link between chemicals in drinks and illnesses such as cancer and obesity. Heathy Shakes will have no sugars and will therefore, be the safest drink around (Kim & Mauborgne, 2014).

To differentiate itself from the competition in the soft drinks industry, Heathy Shakes will differentiate its products. Besides establishing a product line with freshly picked vegetable and fruits with different tastes and flavors, the company will establish an energy drink product line that will seek to address the lesser crowded energy drink market (cravens & Piercy, 2006). There are also plans to start a line that Heathy Shake will package its ingredient into ready to go packages to be added to any water, a more convenient way add will out eating, this would allow us to boost sales for people on the go such as travelers alone with creating a line of varies healthy snacks. We will be use in the way of spreading news of our product by means of advertisement on billboards, TV, and social media, we are so confident of this great product that word will quickly spread.

The company has settled on the Five F’s strategy to grow sales. These strategies include:

1. Functions: the products will be high in quality and serve their functions. The hot drinks will keep the customers warm while the cold drinks will keep them cool during summer.

2. Finances: the products will be affordable, and of great value to the customers. Energy drinks will boost the athlete’s performance while hot drinks will keep customer off hospitals in winter.

3. Freedom: customers will get the freedom of purchasing these products from the shop next door. The company will pursue agitative marketing that will ensure it is stocked in all retailers’ shelves.

4. Feelings: the company will attract the feelings of the customers by offering them a good brand, practicing great customer service, and having respectable employees.

5. Future: the customers who consume Heathy Shakes products will enjoy a productive future of good health and financially sound life.

Heathy Shakes Company plans to conduct a comprehensive marketing strategy. The company plans to invest in social media strategy in addition to sampling and event sponsorship. Social media marketing will reach out to a huge number of targeted individuals (Tuten & Solomon, 2014). Sampling will enable prospective customers to have a taste of the product while sponsored events will give the company a chance to reach out to prospective customers. Healthy Shake will periodically setup display in local retail stores, universities, and outside of fitness.