Looking to start an energy drink business from scratch? Or do you need an energy drink business plan template? If YES, then I advise you to read.
Starting an energy drink business is a good investment with a high return on investment (ROI) because there is a high demand for the drink. The only major problem is that over a hundred brands of energy drinks are introduced to the market every year, and most of these companies exit the market before the end of the year, even due to fierce competition.
These new brands have to compete with the big energy drink brands that have been around for a long time and most of the time they just can’t compete. This information shouldn’t delay your plans to enter the energy drink market, because you can act differently and do better. You need to provide the buyers with reasons to come back and the retailers to buy their energy drink in your store versus other energy drink brands in the market.
This article will help you understand how you can start and run your energy drink business in a different way; resist fierce competition in the market. You will also learn how to keep customers coming back for their drink.
Starting an Energy Drink Business – Sample Business Plan Template
1. Conduct market research -: As I mentioned earlier in this article, dozens of energy drinks hit the market every year, and most of them are shut out of the market by competitors. So, in order for your energy business to stand out and stand the test of time, you must first do market research on what consumers want. Knowing what they need will help you create a product that will be hard for them to refuse.
Since your product is an energy drink, you should choose people who drink energy drinks at least once a day; These people had to try different brands of drink and be able to distinguish between each brand. Then create a focus group from that category of people and ask them what they would like to add to the energy drink, including flavor, packaging, and price.
2. Develop a business plan -: at this stage, you must complete your market research on consumer needs; now is the time to develop an energy drink business plan based on the information you have.
The business plan should contain basic information such as your budget and capital ( if you need to do business alone or if you need to find business partners as financial investors ), the number of employees you need to get started, the location of the business, the mode of advertising and transportation from the plant to wholesalers, retailers and consumers, and finally, the business goal for next five years.
3. Start working on your brand -: The next thing you need to do after developing a business plan is to start working on your brand. By brand, I mean the elements that set your energy drink apart from other energy drinks on the market.
It includes your name, logo, taste of drinks ( taste and aroma must be unique ), packaging ( Will the drink be in a can or in a plastic bottle (unit price, quantity of drink contained in the can). You should also point out that the information you received from the focus group will help you greatly in your work on your brand.
4. Produce the first batch … The worst mistake your business can make is to produce large amounts of energy drink when there is no market for it yet. The wisest way is to make the first batch to hit the market; You can start with the first five hundred to five thousand packs. How this first batch is accepted in the market will determine the size of the next batch produced. When the first batch is ready, it’s time to bring the product to market.
5. Market entry -: the first batch is ready for market launch, the question now ; the best way to bring a product to market to become a household name ? The first thing to do is to make a list of the top 100 distributors or wholesalers in your area and even beyond; contact them and tell them about your new energy drink.
However, you should keep in mind that you are not the first energy drink manufacturer to contact them for a month, but you can give them a reason for wanting to buy your product. One way to solve this problem is that you can give them promotional gifts to entice them to buy your product.
For example, any wholesaler who orders more than one hundred packages of your energy drink will be entitled to a small refrigerator; it can be like a high cost for a product that has not yet been fully accepted in the market, but believe me, when the product hits the market, you will not need to give gifts to people who will buy wholesale from you; the product will sell even without much advertising.
6. Create a name for the household -. By this point, you should have asked some wholesalers and retailers to order your product for distribution; it’s time everyone got to know your product and made a name for it.
The best way to do this is to use TV commercials and radio broadcasts, offering customers a variety of promotional material; for example, “buy one” and get a share, or you can include numbers in the package so that consumers can enter the lottery using the number inside the package.
At the end of the period, some multiple winners will receive prizes. Your business will certainly have to spend a lot to make the product a household item, but once the product is accepted in the market, the profits will start to increase and you won’t have to spend a lot on advertising.