Sports Drinks Industry Analysis Essay Example for Free

Sports Drinks Industry Analysis Essay Coconut water is technically a fruit juice, extracted from coconuts. It is a popular refreshing beverage widely consumed in tropical countries, commonly sold fresh by street vendors still in its green shell, and drunk through a straw. Euromonitor Internationals soft drinks data shows that Brazil is currently the worlds largest market for packaged coconut water. Coconut waters success in Brazil indicates that major opportunities exist in other tropical countries where the drink is part of local beverage consumption culture, such as Indonesia, India, Malaysia and Ecuador. At present, virtually all coconut water in such markets is still consumed fresh rather than packaged. However, as these countries packaged food and beverage markets continue to develop in terms of sophistication, consumers will eventually be compelled by the advantages of purchasing their favorite liquid refreshment in an easily portable, convenient and hygienic format to suit consumption occasions in more formal environments. Seeing the marketability and increasing demand for coconut beverage, it gives the proponents an idea to establish this kind of business through feasibility study. Since there is no existing industry of tonic drink in Sultan Kudarat, it will encourage investors to invest in a newly proposed project. G. BRIEF DESCRIPTION OF THE PROJECT COCO DRINK is a natural isotonic beverage that is high in potassium and other electrolytes. Great for any active lifestyle, it is an effective rehydration beverage for before, during or after exercise. COCO DRINK is a milk-like beverage product that was process through spray drying technique that can be reconstituted in hot or cold water. For those unflavored drinks, it has a milky-white color, bland or neutral. It has a smooth mouth feel and safe to drink, with long shelf life and is cheaper than dairy-based milk drinks. COCO DRINK is also available in different blends, such as coco-Choco, coco-ube, coco-pandan, and other natural flavorings. These are available in bottles, cans, and tetra-packs. H. RISK AND MITIGATION RISK MITIGATION Peace and order Coordinate with the Philippine National police in the locality in case unnecessary events will occur. Unavailability of raw materials Seek for other suppliers of raw material to meet the daily demand and to make raw materials available at all times. Theft/ pilferage Built- in Close Circuit Television would be of help in determining fraud in the business. Hire a well oriented and trust worthy employees. Facilities Malfunction Check and maintain the facilities weekly. Purchase a high quality equipment to meet its useful life. Hire qualified and responsible operator. Product spoilage Refrigerate and freeze the product to prevent from spoilage. Pasteurize the coconut water to prolong its shelf life. Fortuitous events such as, earthquake and fire Secure the building and personnel through insurances. Presence of other tonic drinks. Promote the health benefits of COCO DRINK Develop good technical and marketing strategies. Produce high quality products. I. DEFINITION OF TERMS Electrolytes- is a solution that is capable of conducting electricity. (Electrolytes are commonly found in fruit juices, coconut water, sports drinks, milk, and many fruits and vegetables) Rehydration- is defined as the excessive loss of body fluid. Isotonic- Pertains to a solution in the body having the same osmotic pressure. (Sports drinks are sometimes designed in an isotonic way to assist athletes in rehydrating while balancing electrolytes). Pasteurize- is a process of heating a food, which is usually a liquid, to a specific temperature for a predefined length of time and then immediately cooling it after it is removed from the heat. (This process slows spoilage due to microbial growth in the food. ) Chlorinated water- is water added by chlorine and serves as a method of water purification to make it fit for human consumption as drinking water. J. SUMMARY AND FINDINGS A. MARKETING FEASIBILITY Energy drinks market has experienced significant growth in recent years owing to the craze toward high activities. The proposed project will be materialized in the form of quality products. The target customers are local markets through pharmaceutical drug stores, health and food stores, grocery stores, supermarkets and the likes. B. TECHNICAL FEASIBILITY The manufacturing company will operate 8hrs/day at 26 days a month for 12 months. In terms of technology, the company is aided of modernly designed factory equipment to ensure effective and efficient operation. The company is concerned to improve the quality of its product by choosing the right technology to fill in the packaging that cannot be spoiled by weather or other factors. C. FINANCIAL FEASIBILITY Based on the financial assumptions and projections, the project has the capacity to absorb all the expenses even there is a yearly increase in expenses. Moreover, the company has continuous increase in income yearly. D. MANAGEMENT FEASIBILITY The proponents are all capitalist partners. They will both contribute an equal amount of money or property to start the business. The manager will be responsible in establishing management. They will be responsible for the effective and efficient operation. The personnel will be hired based on the qualifications required. E. SOCIO-ECONOMIC FEASIBILITY The establishment of Coconut Tonic Drink will contribute to the economy particularly of Sultan Kudarat. It will encourage investors to venture because it has no existing industry here in the province yet. It will help to generate additional income to the government through taxes. F. CONCLUSION Based on the findings, supported by the financial projections, the establishment of coconut tonic drink is feasible. It is feasible because of the increasing demand of energy drink and nutritious beverages in local market. It will help generate additional employment in the community and improve domestic production by providing market opportunities. G. RECOMMENDATION Based on the assessment and result of the study, the following are recommended: 1. The company should find ways and means to improve the quality of their products to meet the standards and satisfaction of the customers. 2. Manage the risks that may occur in their dealings with competing companies. 3. Other studies should be conducted to determine other processes to prolong the shelf life of the product, without adding chemicals and to preserving its natural flavor. I. INTRODUCTION Coconuts are different from any other fruits because it contains large quantity of water. When immature they are known as tender-nuts or jelly-nuts and may be harvested for drinking. When mature they still contain some water and can be used as seed nuts or processed to give oil from the kernel, charcoal from the hard shell and coir from the fibrous husk. Coconut water has a numerous health benefits associated, including improved digestion, boost immune system against certain infections, and aids in regulating body temperature. These are just few of the many benefits drinking coconut water can provide. Drinking coconut water daily may help to improve skin elasticity, and avoid wrinkling by keeping the skin well hydrated and providing rich nutrients to nourish, making it looking smoother. Coconut water can provide wonderful alternative to some fruit juices and whole milk, since it contains less fat and calories, and no cholesterol. Compared to energy drinks, coconut water contains less sodium, no sugar and more potassium. Through pasteurization, matured coconut water can be processed into tonic drink that is good alternative for electrolytes and milk. Coconut water could be added a mild flavor and commercialize to public. Of all natural beverages from Mother Nature, coconut tonic drink is an ideal drink, aside from water, to quench thirst and provide renewed vitality and energy for our body with all the basic nutrients, protein and vitamins this. II. MANAGEMENT ASPECT A. FORM OF BUSINESS ORGANIZATION The form of ownership is partnership which owned by the proponents namely: Sharmaine Alimajen and Hyaseth Hope Berin. B. ORGANIZATIONAL STRUCTURE C. DUTIES AND RESPONSIBILITIES OF OFFICERS AND KEY PERSONNEL The data for officers and key personnel are shown in the following job classification and its corresponding capabilities. POSITION NO. OF EMPLOYEES REQUIREMENTS RESPONSIBILITIES OWNER 2 Must be 25 years old and above, male/ female. Financially capable of putting up the business. At least Baccalaureate degree holder of BS Business Administration or BS Accountancy. With a strong vision toward the business. Can handle business operation in all aspect. With a good moral character. will act as a financial provider and has a power over his subordinates. MANAGER 1 Age 25 years old and above. With extensive experience in manufacturing company as Production Manager With strong leadership and communication skills. Knowledgeable in production planning and control. will be responsible for managing the day-to-day operations of the company. Making sure that major administrative and technical problems and concerns of the company and its clients should be monitored and addressed accordingly. Determines appropriate staff-management levels and implement strategies to ensure the efficient operation of the department. ACCOUNTANT 1 must at least a Bachelor’s Degree in Accountancy. Must have 2 years accounting work experience. Can work with minimum supervision, organized and possess good working attitude. Report to management regarding the finances of establishment. Analyze business operations, trends, costs, revenues, financial commitments, and obligations, to project future revenues and expenses or to provide advice. Advise management about issues such as resource utilization, tax strategies, and the assumptions underlying budget forecasts. BOOKKEEPER 1 Male / Female 21-30 years old. Must possess at least a Bachelor’s / College Degree, Finance / Accountancy / Banking or equivalent. At least 1-year experience as a Bookkeeper. Knowledgeable in preparing Book Reconciliation.record about the day-to-day financial transaction of the entity. Reports to the manager the financial condition of the business. CASHIER 1 Male/Female, 20-30 years old. Graduate of any four –year Business course preferably in Accounting or Banking Finance. At least 1-2 years experience in same field or clerical work. Have an experience in cashiering, check payments, remittances, reports, and transactions. will be responsible of receiving and disbursing cash. Enter purchases into cash register. Counts money, give change, and issues receipt. Maintain sufficient amounts for change. Calculates Discounts or references. Balances cash drawer and receipts. FACTORY SUPERVISOR 1 At least 2 year(s) of working experience as supervisor. Must possess at least bachelor’s degree in Business studies/ Administration/ Management. Engineering, as the job requires sufficient knowledge in plant mechanics. Control and monitors processes and operations that take place at a plant or factory. FACTORY WORKER 10 Male/ Female Highschool Graduate 18 to 30 years old Preferably have 1 year experience in production work. Willing to work overtime. will be the one to operate the factory equipment, in-charge of packaging and sealing the product. DRIVER. 1 Has a 6 months experience Male not more than 35 years old. At least high school graduate or college level Will drive truck to transport and deliver materials. Maintains telephone contact with base to receive instruction. Keeps record of products transported. Obtains customer signature or collects payments for delivered goods or delivery charges. Assists in loading and unloading truck items. Other task that might be assigned from time to time. SECUTITY GUARDS 2 at least have a 1-year experience as security guard. Male, 25-35 years old. Must possess at least a Vocational Diploma / Short Course Certificate. Willing to work nine shifting hours. whose duty is to keep the area free from espionage and other harmful individuals and attacks. D. LABOR REQUIREMENTS TABLE 2. 1 SCHEDULE TIME POSITION SCHEDULE TIME Monthly Salary Monday- Friday Saturday IN(am) Out(pm) IN(am) Out(pm) Manager 8:00 5:00 8:00 5:00 P 8,060 Accountant Visit only once a week Visit only once a week 4,000 Bookkeeper 8:00 5:00 8:00 5:00 7,280 Cashier 8:00 5:00 8:00 5:00 7,280 Factory Supervisor 7:45 4:45 7:45 4:45 7,800 Factory workers 7:45 4:45 7:45 4:45 7,020 Driver 7:45 4:45 7:45 4:45 7,020 Security guards 8:00. 5:00 8:00 5:00 7,020 Coffee break time will be ten minutes only anytime between: 9:30 A. M. –10:30 A. M. and 2:30 P. M. –3:30 P. M. Lunch break will be between 12:00 NN –1:00 P. M. (Monday to Saturday). E. BUSINESS POLICIES AND REGULATION These will be the formal statement and rules of the projected project to be implemented by the future management. 1. The manager will report all related problems and all project aspect to the management 2. The cashier is required to perform cash count every day and report to the management about receipts and disbursement every month. 3. Manager should report to higher authority major administrative and technical problems and concerns of the company. 4. The bookkeeper should present financial report monthly. 5. Segregation of duties shall be properly observed. 6. The operation shall be monitored regularly. 7. All transaction must be properly authorized and approved by the manager. 8. Information about the project operation shall be held strictly confidential and shall not be divulged to any person, except authorized by the manager. 9. Terms of sale will be on cash basis. In case of receivables, 30 days will be the credit term. 10. Help each employee to obtain his maximum efficiency and effectiveness through a updated training and development program. 11. Treat each employee with fairness and respect. 12. Recognize and reward efficiency, discipline, and dedication to duty and responsibility. F. PROJECT SCHEDULE TABLE 2. 2 TIME TABLE ACTIVITIES MAR APR JUN JUL AUG SEPT OCT NOV DEC Planning Building of factory Business permits preparation Canvassing and acquiring of office supplies, furnitures and office and factory equipments Positioning of purchased materials into the building Hiring of employees Negotiate to suppliers Formal start of operation III. MARKETING ASPECT A. INDUSTRY The coconut, popularly known as the â€Å"Tree of Life†, is one of the most important crops in the Philippines. It substantially contributes to the countries yearly income and is a major source of foreign exchange being an export winner. The Philippines remains as the world’s leading supplier of traditional coconut products. In 2010, 3. 56M hectares areas planted to coconut. Forty-eight percent (48%), (1,595,120 ha) of all coconut is planted to Mindanao and is produces fifty-six percent (56%), (8. 1M tons) of the total production. In Region XII alone, production of coconut was up by about 11%. Around 44% of coconut production of the region was in Sarangani Province. Cotabato Province contributed about 20% and Sultan Kudarat and South Cotabato produced about 18% each. Crop Production in region XII. The coconut production growth rate in first quarter is 11. 25% generally. (Source: regional Economic Situitioner-First quarter 2012). B. COMPETITION In Philippines energy drinks market, new entrants do not seem as a strong competitive pressure. The existing soft drink industry is already dominated by experienced dominant players with over century-long experienced. Other energy drinks dominate the industry with their strong brand name and great distribution channels. In addition, the energy drink industry is fully saturated unless the new entrants come with an acceptable differentiation. Despite the previously made optimistic postulation that coconut tonic drink could turn out to be the next Gatorade, there are other impediments still to be hurdled like widespread consumer unfamiliarity. These are the competitors existing: Extra Joss (PT Bintang Toedjoe) Lipovitan ( Taisho Pharmaceutical) Powerade (The Coca-Cola Export Corp) Gatorade (PepsiCo International Inc). Samurai ® energy drink (Coca-Cola Philippines) Cobra (Asia Brewery Inc) C. THREAT OF ENTRY Generally, when industry profits increase, it would be possible for additional firms to enter the market to take advantage of the high profit levels, over the driving profits for all firms in the industry. However, in Philippines energy drink markets, new entrants do not seem as a strong competitive pressure. Experienced dominant players already dominate the existing soft drink industry over century-long experienced. Other energy drinks dominate the industry with their strong brand name and great distribution channels. In addition, the energy industry is fully saturated unless the new entrants come with an acceptable differentiation. As entrants, the proposed project should truly â€Å"somebody† to be able to gain an absolute competitive advantage within this industry. If the product were distinct, there will be no fear of product substitution. Once the proponents gained an absolute advantage within the industry, they should deal with suppliers who may have strong bargaining power over pricing on the ingredients needed. D. MARKET ENVIRONMENT The COCO DRINK will be distributed in leading markets and drugstore all over the Province. E. MARKETING STRATEGIES A. MARKET The manufacturing company will produce a quality healthy drink that can renew vitality and energy for our body with all the wonderful nutrients, protein and vitamins this drink contains. The variety of flavours that COCO DRINK has gives consumers a wide selection of its taste preference. The selling of coconut tonic drink does not limit only within the locality but also to the nearby provinces. Products will directly distribute to supermarkets, grocery stores and health food stores. The selling price is is affordable which can reach by all people especially for low income. People can found COCO DRINK easily. The distribution spreads well until the end users. So that more people can have tonic drink as their energy drinks choice B. CHANNEL OF DISTRIBUTION The proposed business will act as a supplier of coconut tonic drink into local markets. FIGURE 3. 1 CHANNEL OF DISTRIBUTION C. PRICE STUDY In a research conducted, there is no existing industry of coconut tonic drink here in Sultan Kudarat. Since coconut tonic drink is the best alternative for electrolyte drinks, the project had foregone a research in pricing of different energy Drink Company of its products. They are selling with a mark-up of 20% to 35% more than the average factory price of the product. As a strategy, the project will reduce 20% in the price of the product of the existing competitors. F. DEMAND AND SUPPLY ANALYSIS Total Philippines Energy Drink Sales Volume 2006 – YTD OCT 2009 Source: Nielsen Retail Index FIGURE 3. 2 ENERGY DRINK SALES The geographic scope of the competitive rivalry explains some of the economic features found in the energy drink industry as shown in Figure above. Two major players dominate the sector – Extra Joss ® is the leader of the energy drink Philippines and boasts a market share of around 68%, followed by Cobra at about 18% in 2008. As we can see in the figure above, the portrait of energy drinks lifecycle have high demand. Overall, energy drinks category only accounts for 0. 5% of the Total Philippines Beverage industry. IV. TECHNICAL ASPECT A. PRODUCT The main product of SHASETH manufacturing company is a coconut tonic drink, coconut juice extracted from a mature coconut, process, and add some flavours to prolong its shelf life. The product will be available in three kinds of packaging: bottle, can, and tetra pack. The said product is process in two different ways: flavours, and unflavoured. This tonic drink is packed full of electrolytes as potassium, magnesium, calcium and phosphorus, affording its naturally isotonic composition. Hence, it has the potential to pull in a completely new audience, such as health-conscious women who have previously shied away from conventional sports drinks. It is a natural tonic or high-energy drink, a good alternative for electrolytes. This product is also good for infants, since the percentage of arginine, alanine, cysteine and serene in the protein of coconut water is higher than those of cow’s milk. Mature Coconut Water Tender Coconut Water Total solids% 5. 4 6. 5 Reducing sugars % 0. 2 4. 4 Minerals % 0. 5 0. 6 Protein % 0. 1 0. 01 Fat % 0. 1 0. 01 Acidity mg % 60. 0 120. 0 pH 5. 2 4. 5 Potassium mg% 247. 0 290. 0 Sodium mg% 48. 0 42. 0 Calcium mg% 40. 0 44. 0 Magnesium mg % 15. 0 10. 0 Phosphorous mg% 6. 3 9. 2 Iron mg% 79. 0 106. 0 Copper mg% 26. 0 26. 0 Source: SatyavatiKrishnankutty (1987) Recommended Nutrient B. MANUFACTURING PROCESS. A product facility was set-up and operated in a semi-commercial scale with the following general specifications: Capacity: Medium scale operation (approximately 500 nuts/day) Expected yield: Approximately 50kg. instant coconut skim milk per day. Starting process for instant (mature) coconut beverage FIGURE 4. 1 MANUFACTURING PROCESS Mature coconut beverage is process through medium scale operation. It needs the mature stage of a coconut (approximately 500 nuts per day), soak, and wash it in chlorinated water (200 ppm). De-shell, pare, and disintegrate coconut meat and coconut juice. Extract and separate the cream. Collect CSM (heating to 90C to coagulate the proteins) decanting whey to concentrate the protein coagulum. Add back some of the cream, centrifuge solids, premixed encapsulating agent, bulking agent, and other required ingredients. Blend, filter, and homogenize using high pressure to reduce fat sizes. Place in a holding tanks and feed in a pre-heated spray dryer stabilized at 150-180+/-5? C. Spray dry at 150? -180C inlet, 70-95? C outlet, with feed rate of 30-50 ml/min. Air-cool to room temperature. Add premixed flavouring, sweetener and other ingredients, dried fruit bits etc. , vitamin mineral blends. Dry mix, pack, seal and label. Store in a cool and dry place. (Source: Department of Science and Technology) C. LOCATION AND AREA The proposed project is located at Barangay Obial, Kalamansig, Sultan Kudarat, portion of lot 437, pls-50, Title no. T-15843 port. That is near to the coconut federation, which is located at lot 472, pls-504, to sustain the daily capacity of nuts needed for manufacturing. The building that consists of factory and office has an area of 200 square meters within the total land area of 400 square meters. The distance of the manufacturing company is 150 meters away from the coconut plantation. D. FACTORY EQUIPMENTS TABLE 4. 1 FACTORY EQUIPMENTS DEPRECIATION Equipments Quantity Acquisition cost Useful life (Years) Annual depreciation Desheller 1 P 63,000 15 P 3,780 Disintegrator 1 126,000 15 7,560 Screw press 1 21,000 15 1,260 Centrifuge 1 63,000 15 3,780 Homogenizer 1 84,000 15 5,040 Holding, Blending and Balance tanks 1 277,200 15 16,632 Spray dryer 1 210,000 15 12,600 Tumble 1 67,200 15 4,032 Ribbon mixer 67,200 15 4,032 Form-fill-seal machine 1 105,000 15 6,300 Walk-in-freezer 1 252,000 15 15,120 Upright refrigerator 1 50,400 15 3,024 TOTAL 11 P 1,386,000 P 83,160 Note: Factory equipment has a salvage value of 10% of its acquisition cost. Factory equipment must be reacquired after 15 years and unit cost is projected to increase by 5%. E. OFFICE EQUIPMENT AND FURNITURES TABLE 4. 2 OFFICE AND FURNITURE DEPRECIATION Office equipment furniture Quantity Acquisition cost Useful life (years) Annual depreciation Computer 1 P 20,000 10 P 2,000 Printer 1 3,500 10 350 Aircon 1 16,700 10 1,670 Table 2 2,000 10 200 Office chairs 2 1,500 10 150 Plastic chairs 2 300 10 30 Cabinet 1 6,000 10 600 TOTAL P 50,000 P 5,000 Note: Office equipments and furniture must be reacquired after 10 years and unit cost is projected to increased 5% per annum. F. OFFICE SUPPLIES. Office supplies Qty. / year Price Year 1 Year 2 Year 3 Year 4 Year 5 Computer ink 24 P 150 P 3,600 P 4,680 P6,084 P 7,909. 2 P 10,282 Calculator 3 125 375 487. 5 633. 75 824 1,071 Puncher 3 70 210 273 354. 9 461 600 Fastener 2boxes 50 100 130 169 220 286 Ball pen 2 boxes 150 300 390 507 659 857 Bond paper 18rims 200 3,600 4,680 6,084 7,909 10,282 Scissor 10 15 150 195 253. 5 330 428 Scotch tape 30 15 450 585 760. 5 989 1,285 Pencil 2 boxes 32. 50 65 84. 5 109. 85 142. 80 186 Carbon paper 6 rims 145 870 1,131 1,470. 3 1,911 2,484 stapler 4 70 280 364 473. 2 615 799 TOTAL P 10,000 P 13,000 P 16,900 P21,970. P28,561 Note: Office supplies will be acquired every year. Unit cost will increase 3% per annum. TABLE 4. 3 G. PLAN LOCATION AND FLOOR PLAN The manufacturing company is placed at the portion of lot 473 with area of 400 square meters located at Barangay Obial, Kalamansig. V. SOCIO-ECONOMIC DESIRABILITY OF THE BUSINESS The proposed project carried cheep is the development of socio economic sector particularly here in Sultan Kudarat. 1. Establishment of this business will help to generate additional employment in the community. 2. It will improve domestic production by providing market opportunities. 3. It will generate additional income to the government through taxes. 4. It will raise additional income to the coconut growers in the municipality. 5. It will provide additional revenue to the province and it will help to improve the said municipality. SUMMARY OF THE FINDINGS, CONCLUSIONS, AND RECOMMENDATION A. SUMMARY OF FINDINGS Based on the assessment and result of the study made by the proponents, establishment of coconut tonic drink in Obial, Kalamnsig is feasible. The proponents prove that the place where proposed project is located is the best source of coconut tonic drink due to wide plantation of coconut. B. CONLUSION After considering the different aspects in conducting this feasibility study, the proponents found out that the establishment of coconut tonic drink in Kalansig is feasible. It is because of the increasing demand of energy drink and nutritious beverages in local market. C. RECOMMENDATION After assessing the result of the study, the following are highly recommended: 1. The company should find ways and means to improve the quality of their products to meet the standards and satisfaction of the customers. 2. It should manage the risk that may occur in their dealings with competing companies. 3. Further studies should be conducted to determine other process to prolong the shelf life of the product without adding chemicals on it and to preserve its natural flavour. 4. Product should undergo laboratory test to make sure that it will pass the quality food standard. 5. Proper sanitation must highly observe. VI. FINANCIAL ASPECT A. UNDERLYING ASSUMPTIONS These assumptions are the basis in computing the financial projections. 1. Sales will increased by 6% per annum. 2. Purchases will increase by 3% annually. 3. Operating expense except for depreciation and legal fees will increase by 3% per annum. 4. Trade receivables at the end of the year are 30% of the year’s sales. 5. Assumed that the target markets are local health food stores, supermarkets, and grocery stores. 6. Project cost is P 4,107,938 with bank financing of 75% payable within 5 years with 8% interest rate and based on diminishing balance. 7. Finished goods inventory at the end of period will be 5% of goods available for sale. 8. Operating hours per day is 8 hours for 26 days monthly. 9. Depreciation expense will be based on straight line method. (see exhibit D) 10. Sales schedule 11. Salary is composed of their respective salary, SSS, and other benefits. It is assumed that SSS and other benefits is 20% of their salary. 12. Withdrawal is 30% of year’s net income starting 2nd year. 13. Income tax provision is 30% of income before tax. B. BALANCE SHEET PROJECTIONS C. INCOME STATEMENT PROJECTIONS D. CASHFLOW PROJECTIONS E. FINANCIAL SUMMARY F. PRODUCTION/OPERATING REQUIREMENTS The SHASETH manufacturing company will operate at Barangay Obial, Kalamansig, Sultan Kudarat. In operating the business, it will require a capital of P 4,107,938 that will be used at the start of operation to fund the purchase of goods and other necessary materials needed to manufacture the coconut tonic drink. Also included to the capital required are the cost of 400 square meter land and 200 square meter building. The factory equipment that has been purchased has a capacity of working 500 nuts a day. G. SUPPORTING SCHEDULE VI. SOCIO ECONOMIC DIVERSITY OF THE PROJECT REFERENCES: Sources and Cites Alibaba. com Google. com Wikipedia. com Organizations/Local Government Department of Trade and Industry Department of Science and Technology Sultan Kudarat Provincial Assessor’s Office Others Regional Economic Situitioner Nielsen Retail Index SatyavatiKrishnankutty We have noticed an increasing number of businesses catering to the recent rise of a new target market: the health-conscious consumer. At Nike, our goal has always been to give consumers what they want now, as well as to anticipate their future tastes, and to thus tailor our strategy to accommodate those tastes. We have recognized an unfilled market potential in the non-carbonated energizing sports drink arena, thus developing an entirely new product category. Our branding strategy is to enter the market by carving a new niche of protein-enriched energizing sports drinks. Our objective is to educate consumers about the new drink, as well as to make a profit and gain market share in the industry. We hope that by being market leaders, our name will become synonymous with the new drink category, and will aid in our sustaining a competitive advantage over the copy-cats that are sure to flock the market after the new products’ introduction and subsequent success. Our primary target market is 18-34 year old females who will use our sports drink whenever they needed a boost: at work, in the gym, or just when they felt like it. The secondary target market is 18-34 year old males who fall into much the same socio-cultural and economic category as the primary target market. The Nike Motion energy drink will be positioned as a high-end item, costing $2 per environmentally-friendly can. It will come in a variety of fruit flavors and will boast the replenishment of electrolytes and other essential vitamins and minerals. We hope that high-frequency mass market penetration using multi-media advertisements will spread the word and raise awareness about Nike Motion. National distribution will follow in supermarkets, pharmacies, health food stores, and gourmet retailers. The Nike brand name, accompanied by its strong brand image, will differentiate the product and maintain its popularity via the market leader and differentiation strategy the company has chosen. [2. 0] Environmental Analysis Economic Trends: The X and Y generations, our target markets, comprise about 110 million people of the United States population. They are, generally speaking, well-educated, and earn relatively higher incomes, thus allowing for much of their disposable income to be spent on health-oriented products, such as the new beverage we are planning to launch, Nike Motion. Neither positive, nor negative economic trends, such as changes in interest rates, inflation, DGP, etc. are not likely to have a significant impact on our product, since it’s not a high priced luxury item whose demand would be affected by theses factors. The quality of sports drinks consumed doesn’t really depend on the income of the consumers, since these are relatively inexpensive, everyday products. As a general trend however it is worth mentioning that the economy as a whole is growing in the United States as well as in other parts of the world, allowing for an ever increasing standa.