MK Beverages Complete Business Plan

MK BEVERAGES CORPORATION
BUSINESS PLAN
2016
JOELLECRANDELL
PROF.DESMOND OSBORNE18 JUNE 2016

MK Beverages Business Plan
1
Executive Summary
MK Beverages
MK Beverages is a start-up company that was established in New Castle, Delaware. It
was created to provide healthy great tasting beverages to the younger demographics of Delaware.
The goal is to change the mind set of what healthy taste like early in life in order to develop a
long lasting desire to stay healthy. The company plans to create a strong marketing position with
the local community that will follow us when expanding into larger market. One way we are
developing this loyal consumer base by establishing joint ventures with the schools and low
income government funded programs.
The concept behind MK Beverages developed when my youngest son had stomach
surgery and developed a real sensitive to certain processed foods and beverages. The biggest
problem was my son’s love for sweet beverages and the lack of nutritional beverages available
that did not upset his stomach. The formula to provide nutritional value and great taste started by
experimenting with different ingredients in my kitchen and testing them out on my son and his
friends.
Once I found the right formula that provided the nutrition and did not upset my son’s
stomach, I took this process and implemented into water, teas, juices and shakes. My homemade
beverages became popular with my son and his friends, so I decided to try it out with my
chiropractor and staff, they were really impressed by the flavor, the low calorie count and the
nutritional value. From there I ventured into the local farmer’s market and talking to school
officials about offering the product line at school events.
MissionStatement
MK company mission is to take the health and nutritional beverages to a whole neither
level by offering products that promote healthy living without losing the taste that consumers

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demand at all ages. Through nutritionally sound recipes and environmentally friendly bottling
process our company ambition is to invest in our employees, suppliers and consumers in order to
establish a sustainable company that meets the changing needs of the consumer. We are
committed to expanding our nutritional agenda by meeting the increasing health trend with
minimum environmental impact. We care about what goes into our products because we care
about the environment and our community.
Business Concept Justification
MK Beverages believes that there are still ways of improving the quality and taste of
healthy beverages that have not been explored and our company wants to take advantages of this
opportunity. As the industry as already displayed the desire for low calorie and high in
antioxidants is being explored by every company in the industry; however, beverages that focus
more on specific problems like my son’s sensitive stomach is a way that MK Beverages can
bring something new to the market. Reason two is the demand for this product line is there and
there is no sign that it will be slowing down any time soon with the consumer demand continues
to focus on a heathier lifestyle. This gives MK Beverages a platform in which to build off of
without fear of the demand dwindling before becoming a sustainable company. The third reason
is providing the consumer a heathier option that is beneficial to the body without hurting the
consumers’ wallet. stated above as potential reasons.
Services
MK Beverages is changing the way that people look at healthy and nutritional beverages
by using Liquid Enhancement properties such as vitamins, natural flavoring and body building
proteins. Our products will focus on energy, nutritional value and overall health that can fit the
needs of the consumer no matter what stage of life they are in. MK is starting with a water and
Tea line and eventually produce an energy drink, juice and power shake line, that will expand

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our target audience by provide a range of healthy and nutritional beverage to suit the growing
health trend. Our product is created using a process that is new and inventive to develop flavors
without losing the nutritional value; we want to show people that living a heathier life does not
mean you have to lose the taste.
MK Beverage Company began in my kitchen where I began experimenting with different
ingredients and tested them out on my son and his friends. Once I found a formula that provided
the nutrition and did not upset my son’s stomach, I used that formula in, water, juices and
shakes. My homemade beverages became popular with my son and his friends, so I decided to
try it out with my chiropractor and staff; they were really impressed by the flavor, the low calorie
count and the nutritional value.
MK Beverage wants to provide more than beverages and has plans to develop helpful
tips, recipes and healthier alternatives to what is currently on the market that you can make at
home. MK beverages believes in order to become the leading company in the health drink
industry, developing a nutritional agenda and marketing strategies to appeal to every stage in a
person’s life; no matter how old you are we have a beverage for you.
Industry Trends
The global nonalcoholic drinks market is in high demand in two regions of North
America and Europe. The market continues to enjoy a steady rate of growth, and the competition
within the industry continues to introduce new products, flavors, and innovative packaging
which provides a sustainable format for the growth rate to continue growing. A growing need to
be healthy as fueled the trend for consumers to purchase Low-calorie products in the
nonalcoholic drinks market. In Europe, the health beverages demand accounts for 30% of the
total sales of non-alcoholic beverages. In the US there are 760 different companies that produce
some type of health beverage, however only 15% of the companies dominate the non-alcoholic

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industry taken up 90 % of the revenue. Only 6 % of the beverages offered to US consumers are
imported and only 3% of US based companies distribute outside of the US.
In order for younger and smaller companies to maintain a presence in the market they
need to focus more on introduction of new products and innovation, while the bigger and more
established companies have the resources to put marketing strategies into play in order to draw
consumers to their products. Typically, these types of beverages are purchased with consumer’s
disposable income and with the economy stress most consumers are under. The demand rate
would show a decrease or no movement at all; however, the desire to be heathy and disease free
out ways the lack of income, allowing the demand to increase.
Beverage Justification
The reason I choose to pursue this type of beverage is because I believe that there are still
ways of improving the quality and taste of healthy beverages that have not been explored and
MK Beverages wants to take advantages of this opportunity. As the industry as already displayed
the desire for low calorie and high in antioxidants is being explored by every company in the
industry; however, beverages that focus more on specific problems like my son’s sensitive
stomach is a way that MK Beverages can bring something new to the market. Reason two is the
demand for this product line is there and there is no sign that it will be slowing down any time
soon with the consumer demand continues to focus on a heathier lifestyle. This gives MK
Beverages a platform in which to build off of without fear of the demand dwindling before
becoming a sustainable company. The third reason is providing the consumer a heathier option
that is beneficial to the body without hurting the consumers’ wallet. stated above as potential
reasons.
Marketing Plan and Sales Strategy

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Mk Beverages is a start-up company that was established in New Castle, Delaware. It
was created to provide healthy great tasting beverages to the younger demographics of Delaware.
The goal is to change the mind set of what healthy taste like early in life in order to develop a
long lasting desire to stay healthy. The company plans to create a strong marketing position with
the local community that will follow us when expanding into larger market. One way we are
developing this loyal consumer base by establishing joint ventures with the schools and low
income government funded programs.
Company Strategic Position
MK Beverages strategic position is going to rely on features and convenience, with our
company being so small; focusing what our products provide the consumer and how convenient
the products are will enable us to build a loyal fan base which is the foundation to a sustainable
company. With our initial target market being the surrounding communities as well as our
friends and neighbors, focusing on how our products will benefit their lives without the
inconveniencing their lifestyle will give MK Beverages the advantage over the national brands
that the consumers are used to.
MK Beverage Corporation SWOT Analysis
Risk Assessment
Identified Risks
The biggest risk when entering the beverage industry is that the market is a monopolistic
competition were it is so heavily dominated by a group of companies that new company have
very little chance of making it. The second risk is a saturation on familiar products that makes it
hard for the consumer to distinguish your product over the other competition. The third risk is
health concerns when it comes to providing these types of products. If your product has not been

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handled properly it could cause negative health issues to their consumer that will put a negative
public view on the company and will hurt the company financially were they cannot recover.
SWOT Analysis
Strengths Weakness
Unique product startup company
Cost future cost
Quality Product availability
Communication high risk
Workers amount of workers
Delivery distribution channels
Opportunities Threats
Development of new product Similar or copycat products
Expansion decrease in demand
Marketing research suppliers cost increase
Entering new demographics decrease in quality
Expand portfolio shortage of key supplies
Increase in demand low return on investment
Competition
Major Competitors
Our major competitors are going to be Coca-Cola, Nestle, Pepsi, Cadbury
Scheppes and Lipton and each one of these companies have a well-established distribution,
marketing, extensive target audience. Even though the competitors that our company will be
going up against may have a stronger network in which to work off of, we believe that as long as
we stick to our values and the vision we have set for our company we will be able to find
alternatives sores that will keep us competitive with the hard hitters in the market.

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Competitive Strategy
The market strategy that we are using is the personal connection with our target audience
that our major competitors can no longer achieve. This tactic will enable us to build a loyal
consumer base and help establish a sustainable product line to carry us into the future. While the
bigger name brand beverages are using multi-billion-dollar marketing tools; our marketing tools
will be our own customers and word of mouth. We have seen proven results in how a product
can go from nothing to sold out just by getting noticed by the public and going virial on the
internet.
We believe that establishing us as a company that is invested in all aspects of their
consumer health needs will provide us with a competitive edge. With the world transitioning into
a cyber life style, the personal connection has been lost and brand loyalty is not as important to
the consumer as finding the latest product at the best price. By bring back that personal
connection will enable us to build a brand loyalty and turn us into a strong threat to the current
leaders within the market.
Product Differentiation
Marketing Message
MK beverages mission is to become the leader in health and nutritional beverage by
inspiring our consumers to not only choose healthier alternatives in their beverages consumption
as well as develop a heathier life style entirely. MK Beverages intends to provide our consumers
with quality products that offer a range of benefits at an affordable price. MK Beverages realize
that a huge percentage of the obese population is found in the low income families and the
younger generation with this in mind our prices will always stay affordable for all income levels.

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Restricted Target Marketing
MK Beverages target market is going to young adults, teenagers, parents with young
children; the reason for this specific target audiences is because the area that MK Beverage is
starting out has a high obesity rate in the youth and if we can change the view of these younger
demographics it will have a bigger impact than if we try to target just adults in the area. It is a
known fact that what we learn as children has a permanent effect on the rest of their lives, so if
we can change their taste buds and views on healthier products will change their future life style.
Target Market
Understanding the current market MK Beverages has decided to focus on specific
markets; that includes parents, young adults, teenagers, pre-teens, toddlers and infants. The
current demographics in the state of Delaware shows that the target ranges we pick will have a
significate influence on the success of our company. There is a high percentage of single young
female adults, teenagers and family oriented households in Delaware that MK Beverage can use
simple marketing tactics to network our products. Working with local stores, farmer’s markets,
school and community events MK Beverages can build a connection with the community and
our consumers that main stream company have lost. This positive connection can go virial and
provide the company with free marketing and advertising; this type of advertisement can also
lead to potential partners and investors that could carry the company into other markets including
going internationally.
Another area that we intend to explore is working with the Department of Social Services
so that we can be part of helping the needy families in the community. Providing beverages that
are affordable and healthier than the current brands available in the WIC program for young
mothers and infants. The focus for the welfare recipients is to show them that there are healthier
alternatives for their children that will not cost a lot of money. With the increase in welfare

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recipients across the nation, it has also increase the number of overweight citizens because it is
cheaper to buy a can of Coke than is to buy a bottle of water or juice. Providing waters, juices
and teas that are healthy and affordable can change the not only the consumers’ views but the
current health situation in low income homes.
Company Promotion
We our starting out in school and community events so we will be using free
samples, flyers and nutritional fact sheets. Our both will also have activities and prizes that can
be won by the children to encourage them to try our products. The booth that we will be using in
the farmer’s market with have an earthier tone to the booth with real fruits and vegetables all
around, free samples, suggestion box, magnets and other promotional trinkets, bundle deals and a
discount card for frequent customers. In the chiropractor’s office providing a free bottle of water
with every first visit and a monthly appreciation day to thank the customers for being there.
These are the initial stages of our promotional campaign which will take us into the
next stage and that will be partnering up with local convenience stores and grocery stores in
order to widen or target market, then eventually partnering up with a major company that can
take us national. Even when we obtain national status we intend to focus on developing
relationships with the local and state agency in order to have our products as part of their low
income programs. MK Beverages main objective will always be providing healthy beverages
that taste great while maintaining an afford price so that all income levels enjoy our products.
Management and Organization Plan
Management Structure and Style Justification
Management Structure
To start with it will be myself that will be providing the business aspect for the business
eventually as we expand we will hire individuals with the right qualifications. I currently hold an

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BA in finance and a MBA in management, with 8 years’ experience in the procurement
department of a non-profit organization, 10 years working with projected managers on multiple
constructional projects and locations. With all the money being made with in the first year
reinvested into the business, I will be employee my children as MK Beverages first employees
and will get paid minimum wage as the company start to make a profit future employee with
have to be interviewed to ensure that they have the proper experience and or legally able to work.
When the company achieved the proper funding additional management positions will be
created such as marketing department, finance department, human resource, product
development, customer service, distribution and executive board. The candidates for each of
these departments will need to have specific and established experience for the position that they
are applying for. The first department that the company will focus on is Human Resource
because this department ensures that the company obeys the federal and state laws regarding,
organizational environment, employees’ rights, pensions and medical requirements, hiring &
firing of employees. The rest of the departments will be created in this order Financing, product
Joelle Crandell
CEO & founder
KODY CRANDELL
ANDY ZEPEDA
EMPLOYEE
MIKE HILLOCK
vacantVC
PRESIDENT

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development, customer service, marketing, distribution which will provides us with our
executive board.
At this point MK Beverages will have established the upper level management of the
company and this is where implementing the management style the owner has chosen will begin
and that is a combination of Transactional, Charismatic and One thing about a sustainable
company is to be willing to change as the trends, needs and target markets change.
Democratic/Participative. Transactional leadership will be the initial style used, it is a little more
structured but will give the most stability to a brand new company like MK Beverages. Once the
company has secured a solid place with in the market and begin creating multiple levels of
management all the way down to floor supervisors MK Beverages will incorporate other
leadership styles as the company’s structure and environment changes.
Operations Plan
Key Aspects of Operations
MK Beverages is providing a line a drinks that are heathier with added enhancements to
promote a healthy lifestyle without losing the taste that most consumers desire. For the first 2
years it will consist of myself, my two boys as the initial employees. The company will start out
of my home, by the end of the first year we will be in a separate building in order to expand our
product line. The equipment that we will be using will be the most expensive part of our process
because we plan to buy equipment that is environmentally friendly and can be added on to as our
company expands.
Company Distribution Channels
Mk Beverages current distribution channels consist of buying ingredients and supplies
online, production is done right out of my house and delivery is done by my own vehicle or by
delivery services such as UPS or Fed Ex. After the buy in MK Beverages will move to a separate

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location, will start buying in bulk through the internet and delivery vans will be purchase for
local deliveries. Eventually MK beverage will acquire its own distribution center, with its own
fleet of trucks and vans; while still using outside delivery services as needed. The current
merchandisers are small venues like the farmer’s market, community events and local grocery
stores. Over the next three years MK beverages will pursue contracts with national supermarkets,
convenience stores and specialty stores. By the beginning of the fifth year MK Beverages plans
to expand into foreign markets and will acquire multiple distribution centers along with third
party distribution centers in order to fill demand.
Ethics and Social Responsibility Plan
Corporate Citizenship
MK Beverages plans to set an example to the community by working with the welfare
system in order to provide the less fortune with healthier options. We also plan to work with state
agencies to develop a program that will help the homeless/ jobless learn life and work skills by
working for the company on a temporary basis. Once they go through the program they should
have the skills necessary to obtain a permeant job. We are also developing a school program the
will assist in educating the youth about healthier choices and also creating a scholarship program
for students who have taken initiatives to create a better lifestyle for themselves or the
community.
Environmental Impact Assessment
Because our company is not just about being healthy but also to be environmentally
friendly we tend to use the latest technology when producing our products to keep emissions as
low as possible. We plan to use delivery services that value environmental protection as much as
we do so that our products are still being distributed in an environmental friendly format even
when we pass it on to our distribution channels. We also will be working with all environmental

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agencies to ensure that we stay with in all laws and regulations as our company develops. We
also want to develop a program that will reward communities that make the effort to
environmental friendly.
Health Issues and Claims
The health issues that we have to be aware of is making sure our ingredients and bottle
process our always on point because the type of products that we are using could cause serious
health issues amongst the consumers. This is being working with the FDA will help us ensure
that our growing product line does not have a negative impact on the consumer and the
communities.
Financial Projections
MK Beverages invested $ 20,000 of its own capital, a SBA loan of 500,000 from
Delaware SBA along with $125,000 from a silent investor, this beginning capital will provide the
company will cover the projected financial requirements at this time.
Using the research and projected figures that we have obtain we anticipate in the first
year of total sales to be $117,400 with a 1% sales increase after every quarter for the first four
years. Estimated breakeven point of $121,519 by the first quarter of the third year and sales
averaging $776,871. Net profits over the first three years are projected to be $359,240 the first
year, $514,300 in the second year and $968,438 in the third year. With the knowledge of the
competitive market MK Beverage has set in place very detailed financial plan for the first three
years in order to ensure sustainability during the growing stage of the company.
Return on Investment
As the company’s moves forward adding new product and developments the projected
ROI shows the percentage doubling after the first year and staying in the range of 35 – 40% over
the next 4 years. Of course as the company had new product we are estimating that the number

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will only increase and with the strategic plans that the company develop the margin for errors
will remain under 10%. With the potential risk a start -up company takes on MK Beverage is
confident that investing in our company will not have the high risk that is applied when investing
in this type of venture.
Milestones
 2015 – launch brand
 January 2017 – Achieve Investors
 March 2017- Move into new Facility
 August 2017- partner with State assistance programs
 January 2018 – breakeven
 June 2018- Start meeting with Pepsi on market collaboration strategy
 December 2018 – beginning legal paperwork to partner with Pepsi
 March 2019 – Expand target market
 June 2020 – Go national
Exit Plan
In the event that the proposed business plan does not develop as estimated MK Beverages
will negotiate with Pepsi who we are currently collaborating with to fund us doing the financial
set back. We have already initiate a plan to offer stock investment of the company to the public
after the third year, with an option to offer public stock earlier if necessary. The last strategy that
the company will implement before dissolving the company will be to bought out by another
company within the market and with the current relationship with the Pepsi Corporation they will
have the first chance to Acquire the company.
The company will monitor the state of the business over the first three years with the
understanding that numbers will fluctuate during this time. Implementing the problem solving

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techniques that was developed in order to maintain a positive cash flow as the company
established a permeant position in the market. If the business debt increase and cash flow
continues to decrease and has gone throw all the previous options, the company will implement
liquidating the company in order to minimize the financial damage to the investors and finally to
the owners. Beginning with selling the remaining products and all the company’s equipment,
whatever debt is left creating a payment plan that will stratify the creditors without causing more
financial hardship on the owners.
Financial Statements

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References
Delaware Statistics; retrieved from uscensus.com
www.Coca-Cola.com
www.Pepsi.com
www.nestle-watersna.com/en/bottled-water-brands
www.bevindustry.com/articles/83864-the-top-100-beverage-companies
Breaking down the chain; retrieved from http://www.foodpolitics.com/wp-
content/uploads/SoftDrinkIndustryMarketing_11.pdf
www.coca-cola.com
www.nestleusa.com
On the Cusp of a healthy beverage Boom; retrieved from www.foodbusinessnews.net

MK Beverages Complete Business Plan

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