Presentation.pptx
•Download as PPTX, PDF•
0 likes•8 views
Martin Mambu is requesting a three year loan of $84,792 at 6.2% annual interest to start a lemonade business. The business will create a unique brand and produce healthy lemonades using uniquely blended recipes. It will target the high-end market and aims to break even after selling 70,076 cups annually given fixed costs. With expected annual demand of 115,848 cups, it projects making a $1.21 profit per cup sold. Risks include seasonal demand changes and material shortages, which will be managed through stocking and alternative materials. Performance will be measured through monthly sales, customer satisfaction surveys, and client retention rates.
Recommended
More Related Content
Similar to Presentation.pptx
Similar to Presentation.pptx (20)
Recently uploaded
Recently uploaded (20)
Presentation.pptx
- 2. Three Years Loan of $84,792.00 at 6.2% Annual Interest rate to create an outstanding brand of Lemonade 2
- 3. Our Mission To create an outstanding brand and produce healthy thirst satisfying lemonades. Sample footer text 3
- 4. Strategy We will use the high-end market and reach out to customers with our uniquely blended recipes and branded lemonade products 4
- 5. Why It Will Work To create an outstanding brand and produce healthy thirst satisfying lemonades. We will use the high- end market and reach out to customers with our uniquely blended recipes and branded lemonade products
- 6. How it will work 6 Breakeven 70076 cups Annual Fixed Cost $-84,792.00 Expected Annual Demand 115,848 Cups Profit per Cup $1.21
- 7. Risk Management Plan 7 Risk Plan Lack of proper market research and data to know the demand for lemonade Additional market research and review of data about the demand of lemonade. Initial research data shows sufficient demand Changes in seasons form dry season to rainy season my decrease the demand for lemonade Study customer behavior and adjust production according to seasonal demand Shortage of fresh lemonade recipe materials during certain times of the year Stock materials during high demand season and identify alternative materials (for example: using pure lemon extract) in place of freshly cut lemons. Poor Customer Service which could hamper our sales Train all staff to practice good customer service before starting work and doing refreshers annually.
- 8. Measuring Performance 8 Monthly Sales Performance - will be our primary metric Monitor sales activities, prepare sales reports, and compare current with previous months Customer Satisfaction Score How satisfied or dissatisfied our customers are with our products Review customers feedbacks Client Retention Rate Percentage of customers who will continue to buy our product over a period of one year Customers will stick to our product if they find it satisfying over other products.
- 10. Summary MMPLASK LEMONADE Creating Outstanding Brand Healthy Drinks Thank you! 10
Editor's Notes
- Good Morning Mrs. Dalino. My name is Martin Mambu. Thanks for affording me the opportunity to present to you MMPLASK Lemonade
- We are here today to request a loan in the amount of $84,792.00 at 6.2% Annual Interest Rate. This means that the total loan amount plus interest to be paid will be $93,140.20. This Loan will serve as the starting capital of MMPLASK to begin the creation of an outstanding brand of Lemonades. Our business strategy and means of generating revenue and repaying the Loan will be shown in this presentation.
- Our Mission is to create a brand of lemonades that will be very remarkable on the market and will be known to quinch our customers’ thirst without posing any problems to their health.
- We will use the High-End Market. We will produce a brand of lemonades unique to us. We will blend our ingredients to create healthy recipes, this will maintain our uniqueness. We will reach out to customers to create demand. Our strategy of branding our product and creating outstanding and healthy recipes for the high-end market aligns with our mission.
- This slide illustrates how our strategy fits into our mission. Using the high-end market will get us to customers in many places with our products and promote our brand to become outstanding.
- Based on initial market research, we have determined that we will be able to sell a cup of Lemonade for at least $1.80 at 80% demand. Our Variable Cost per cup will be $0.59 and our Profit per cup will be $1.21. We will reach our breakeven point when we sell 70076 cups. We will be able to sell as much as 115,848 cups a year. This will give us a total Sales Revenue of $208,572.84 per year. Our Annual Fixed Cost is $84,792.00 Our Annual Operating Expenses will be $87,574.73 (which include: rent utilities, labor, expected average interest expense of the loan). With all the expenses deducted from our Revenue, we will have a Net Income or Profit of $52,602.31 per year. Based on the analysis displayed with this graph, we will be able to generate sufficient revenue to make profit to repay the loan.
- Like every other business, ours also has risks. However, our ability to identify and deal with risk appropriately will determine whether our business will thrive. After carefully analyzing we have identified the following risk and outline plans to deal with them. The first one - Lack of proper market research and data to know the demand for lemonade - is a deal-killer risk. This is the most important and most prioritized because it threatens the existence or our business if we do not deal with it and eliminate it. The next two - Changes in seasons form dry season to rainy season my decrease the demand for lemonade, and Shortage of fresh lemonade recipe materials during certain times of the year - are path-dependent risks. These may pose some serious challenges to our business and cause some changes such as reduced revenue, and change in strategy, but our business will still exist while we try to address them. The last one - Poor Customer Service which could hamper our sales - is an operational risk which we are very capable of dealing with.
- Monthly Sales Performance will be our primary metric. This will help us to measure our sales activities every month. We will prepare monthly sales reports and will compare currents monthly sales performance with the previous months to know the level of improvement in sales. Customer Satisfaction Score is another primary metric because it will help us to know how satisfied or dissatisfied our customers are with our products. Additionally, we will request customer feedbacks so that we can improve on my products to meet customers’ satisfaction. Client Retention Rate is also another important measure of performance because customers will stick to our product if they find it satisfying over other products. This aligns with our mission: To create an outstanding brand and produce healthy thirst satisfying lemonades. We will retain customers if our brand is outstanding, and our products are superior.
- This slide shows our projected Income Statement for the first year, detailing monthly sale revenue and costs – variable and fixed costs. If we sell a total of %115,848.8 units, we will generate a total revenue of $208,527.84 for the year. Our variable cost will be 68,350.79, and our gross profit will be $140,177.05. From our gross profit, we can subtract our total operating expenses of $87,574.73 and then we will be left with $52,602.31 as our Net Profit. As you can see, if we are able to meet up with our sales from the very first month (January) we will generate a Net Profit of $2,627.98. Our net profit will continue to increase gradually up to the end of the year. This means that we will be able to repay our loan with no difficulty.
- Finally, we say thanks for giving us the opportunity to show you how your investment in MMPLASK Lemonade is a good decision that will not just be a profitable one, but it is also your involvement with a business venture that will build an outstanding brand of lemonades on the market and give our customers healthy drinks from every sip. Thank you!