Sports Drinks Industry Analysis Essay Example for Free

Sports absorbs Industry Analysis Essay cocoa palm palm wet is technic on the wholey a harvest-home juice, extr affected from cocoa zany. It is a popular refreshing beverage widely consumed in tropic countries, comm unaccompanied sold fresh by street vendors still in its green shell, and drunk by a straw. Euromonitor Internationals soft soak ups info shows that Brazil is currently the worlds largest intellectual nourishment commercialize for packaged coconut body of water. cocoanut irrigate success in Brazil indicates that major opportunities exist in otherwise tropical countries where the make merry is collapse of local beverage consumption culture, such as Indonesia, India, Malaysia and Ecuador. At present, virtu eithery all coconut water in such trades is still consumed fresh rather than packaged. However, as these countries packaged food and beverage commercializes go on to develop in terms of sophistication, consumers go away eventually be compelled by the advantages of purchasing their favorite silver-tongued 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 demarcation through feasibility study.Since there is no alert exertion of tonic sop up in grand Turk Kudarat, it forget encourage investors to invest in a impertinentlyly proposed look. G. BRIEF DESCRIPTION OF THE PROJECT coconut DRINK is a internal isotonic beverage that is steep in potassium and other electrolytes. enormous for any active lifestyle, it is an effective rehydration beverage for before, during or after exercise. COCO DRINK is a milk- comparable beverage product that was work on through spray drying technique that idler be reconstituted in hot or cold water. For those unflavored drinks, it has a milky-white color, b realm or neutral.It has a smo oth mouth feel and salutary to drink, with long shelf life and is cheaper than dairy- ground milk drinks. COCO DRINK is similarly accessible in assorted blends, such as coco-Choco, coco-ube, coco-pandan, and other natural flavorings. These atomic number 18 available in bottles, cans, and tetra-packs. H. assay AND MITIGATION RISK MITIGATION Peace and order Coordinate with the Philippine National police in the locality in end unnecessary events bequeath occur. Unavailability of raw materials Seek for other suppliers of raw material to work the daily demand and to make raw materials available at all times.Theft/ pilferage Built- in culture 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 elevated quality equipment to meet its useful life. Hire qualified and responsible operator. Product spoil Refrigerate and stop dead the pr oduct to prevent from spoilage. Pasteurize the coconut water to prolong its shelf life. Fortuitous events such as, seism 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. rendering OF TERMS Electrolytes- is a solution that is able of conducting electricity. (Electrolytes be commonly ensnargon in fruit juices, coconut water, sports drinks, milk, and many fruits and vegetables) Rehydration- is defined as the excessive loss of dead body fluid. Isotonic- Pertains to a solution in the body having the same osmotic pres reliable. (Sports drinks are sometimes designed in an isotonic way to assist athletes in rehydrating while balancing electrolytes).Pasteurize- is a lick of heating a food, which is usually a liquid, to a unique(predicate) temperature for a predefined length of time and then immediately cooling it afte r it is removed from the heat. (This adjoin slows spoilage due to microbial growth in the food. ) Chlorinated water- is water added by chlorine and serves as a system of water purification to make it fit for human consumption as drinking water. J. synopsis AND FINDINGS A. market FEASIBILITY Energy drinks market has drived significant growth in recent years owe to the craze toward high activities.The proposed project pass on be materialized in the form of quality products. The signal customers are local markets through pharmaceutical drug stores, health and food stores, grocery stores, supermarkets and the likes. B. TECHNICAL FEASIBILITY The manufacturing companion entrust operate 8hrs/ sidereal day at 26 days a month for 12 months. In terms of technology, the gild is aided of modernly designed factory equipment to ensure effective and monetary value-efficient mathematical achievement. The club is implicated to modify 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 depart both contribute an equal amount of money or property to start the business. The autobus leave behind be responsible in establishing management. They allow for be responsible for the effective and efficient operation. The personnel will be hired based on the qualifications required.E. SOCIO-ECO zero(prenominal)IC 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 persistence here in the province yet. It will help to overprotect additional inco me to the government through taxes. F. decisiveness 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 postal code drink and nutritious beverages in local market.It will help generate additional employment in the community and improve domestic take by providing market opportunities. G. testimony Based on the assessment and allow for of the study, the following are recommended 1. The company should find ways and spatial relation 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. another(prenominal) 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 Coco zany are incompatible from any other fruits because it c ontains 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 brawny husk. Coconut water has a numerous health benefits associated, including improved digestion, boost immune system a assemblest certain(prenominal) 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 whittle 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 toothsome and calories, and no cholesterol. Compared to energy drinks, coconut water contains less sodium, no sugar and more p otassium. Through pasteurization, grow 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 re innovativeed 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 self-possession 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. A t least Baccalaureate degree holder of BS Business governing or BS Accountancy. With a bullocky vision toward the business. Can handle business operation in all aspect. With a good moral character. will act as a financial supplier and has a power over his subordinates. MANAGER 1 Age 25 years old and above. With extensive reckon in manufacturing company as business tutor With strong leadership and communication skills. knowing 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 Bachelors power point in Accountancy. Must involve 2 years accounting work experience. Can work with marginal supervision, organized and pos sess 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 mental imagery utilization, tax strategies, and the assumptions underlying budget forecasts. BOOKKEEPER 1 Male / Female 21-30 years old. Must possess at least a Bachelors / 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. ammonia alum 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 draftsperson and receipts. FACTORY SUPERVISOR 1 At least 2 year(s) of working experience as supervisor. Must possess at least bachelors degree in Business studies/ Administration/ Management. Engineering, as the job requires sufficient knowledge in plant mechanics. Control and monitors processes and operations that take ordain at a plant or factory. FACTORY WORKER 10 Male/ Female Highschool Graduate 18 to 30 years old Preferably pose 1 year experience in production work. spontaneous to work overtime. will be the one to operate the factory equipment, in-charge of packaging and shut 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 im part 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 spots. Other task that might be delegate 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. savvy REQUIREMENTS prorogue 2. 1 enrolment TIME POSITION SCHEDULE TIME Monthly Salary Monday- Friday Saturday IN(am) Out(pm) IN(am) Out(pm) Manager 800 500 800 500 P 8,060 Accountant Visit only once a week Visit only once a week 4,000 Bookkeeper 800 500 800 500 7,280 Cashier 800 500 800 500 7,280 grind Supervisor 745 445 745 445 7,800 Factory workers 745 445 745 445 7,020 Dri ver 745 445 745 445 7,020 Security guards 800.500 800 500 7,020 Coffee good fortune time will be ten minutes only anytime amongst 930 A. M. 1030 A. M. and 230 P. M. 330 P. M. Lunch break will be between 1200 NN 100 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. training about the proj ect operation shall be held strictly confidential and shall not be divulged to any person, buy food 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 capacity and effectiveness through a updated training and development program. 11. Treat each employee with fairness and respect. 12. Recognize and compensate efficiency, discipline, and dedication to duty and responsibility. F. PROJECT SCHEDULE TABLE 2. 2 TIME TABLE ACTIVITIES MAR APR JUN JUL AUG tribe 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. labor The coconut, popularly known as the Tree of Life, is one of the most important crops in the Philippines. It intimately contributes to the countries yearly income and is a major source of foreign exchange being an export winner. The Philippines remains as the worlds leading supplier of traditional coconut products. In 2010, 3. 56M hectares areas planted to coconut. Forty-eight pct (48%), (1,595,120 ha) of all coconut is planted to Mindanao and is call downs 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 division 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 see as a strong competitive pressure. The existing soft drink constancy is already henpecked by e xperienced dominant players with over century-long experienced.Other energy drinks dominate the industry with their strong blemish name and great scattering channels. In addition, the energy drink industry is fully change 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 instauration 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 somebody to be able to gain an absolute competitive advantage within this industry. If the product were distinct, there will be no upkeep of product substitution. Once the proponents gained an absolute advantage within the industry, they should deal with suppliers who may have strong negociate 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 h ealthy 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 merchandising 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 harm is is cheap 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. personal line of credit 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 dr ink is the beaver 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 system, the project will reduce 20% in the price of the product of the existing competitors. F. DEMAND AND SUPPLY ANALYSIS rack up Philippines Energy Drink Sales Volume two hundred6 YTD OCT 2009 Source Nielsen retail baron FIGURE 3. 2 ENERGY DRINK SALES The geographic scope of the competitive disceptation explains some of the economic features found in the energy drink industry as shown in work 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 th e 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 latent 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 cows milk. Mature Coconut Water Tender Coc onut 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 atomic number 12 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 induction was set-up and operated in a semi-commercial scale with the following general specifications Capacity Medium scale operation (approximately cholecalciferol 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 coc onut meat and coconut juice. Extract and separate the cream. cumulate 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 equalise using high pressure to reduce fat sizes. Place in a holding tanks and fertilise in a pre-heated spray dryer stabilized at cl-180+/-5? C. atomiser 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 surgical incision of skill and Technology) C. LOCATION AND AREA The proposed project is located at Barangay Obial, Kalamansig, Sultan Kudarat, portion of lot 437, pls-50, patronage no. T-15843 port. That is near to the coconut federation, which i s 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 form meters within the total land area of 400 square meters. The distance of the manufacturing company is 150 meters away from the coconut grove. D. FACTORY EQUIPMENTS TABLE 4.1 FACTORY EQUIPMENTS DEPRECIATION Equipments touchstone Acquisition cost Useful life (Years) Annual disparagement 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 car 1 105,000 15 6, three hundred Walk-in-freezer 1 252,000 15 15,120 Upright refrigerator 1 50,400 15 3,024 organic 11 P 1,386,000 P 83,160 Note Factory equipment has a salvage value of 10% of its acquisition cost.Factory equip ment 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 military post 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 4 28 Scotch memorialize 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 oomph 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 pr ovide 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 subsequently 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 sho uld 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 years sales. 5. Assumed that the direct markets are local health food stores, supermarkets, and grocery stores. 6. Project cost is P 4,107,938 with bank pay of 75% payable within 5 years with 8% interest rate and based on diminishing balance. 7. Fi nished 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 years net income starting line 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 include to the capital required ar e 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 Assessors Office Others Regional Economic Situitioner Nielsen Retail Index SatyavatiKrishnankuttyWe 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 prognosticate 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 st rategy is to enter the market by carving a new niche of protein-enriched energizing sports drinks.Our objective is to instill 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 same 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 give-up the ghost 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 replenishme nt 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 ostracise economic trends, such as changes in interest rates, inflation, DG P, etc. are not likely to have a significant impact on our product, since its not a high priced luxury item whose demand would be affected by theses factors. The quality of sports drinks consumed doesnt 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.