Executive Summary
Importance of setting up a lemonade business
Lemonade is an essential ingredient used by many beverage companies. It is used in making various sweetened beverages that are added to lemon flavors. Therefore, I plan on setting up innovative products that contain lemonade. There are numerous health benefits that human beings obtain from drinking lemonades. This includes the provision of vitamin C. There is an increase in the demand for lemonade as a result of increased awareness related to wellness and health among many consumers. Further research reveals that natural lemonade can deliver nutritional benefits while at the same time maintaining its original taste.
Problem
Over 85% of schools in the United States tend to provide students with carbonated drinks through their vending machines (Transparency Market Research, 2019). This has resulted in the growing concern of providing students with unhealthy drinks that have brought about many health-related problems. This includes diabetes and obesity as these drinks have low nutritional value. A decline in the sale of carbonated beverages has resulted in stiff competition.
Solution
To curb this particular problem, most of the carbonated drink companies must venture into the manufacture of lemonade. For this to succeed, they must come up with innovative branding strategies and new advertising and marketing techniques. The introduction of lemonade in most carbonated drinks is bound to increase the number of sales considerably. Therefore, there is a huge opportunity for me to worked collaboratively with the soft drink companies to enhance the beverages manufactured, making them appealing to most of the health-conscious Americans. Moreover, there is a rising demand for frozen and organic lemonade among customers. This will be a huge opportunity that is bound to increase revenue in the lemonade business.
Market Segmentation
In terms of market segmentation, the lemonade is divided based on the products, packaging, distribution channel, and region. In terms of product, the lemonade is divided into alcoholic and non-alcoholic beverages. In the distribution channel, lemonade will be distributed through the use of online channels such as Facebook and Instagram, as well as through offline distribution channels that entail physical locations where the products are sold. This includes supermarkets and convenience stores. In terms of region, we will consider selling the products both locally and internationally to other parts of the world, such as Asia.
Competitive Advantage
There is stiff competition from top beverage companies such as CocaCola, Arizona Beverages, PepsiCo, and many other well-established lemonade companies. However, the company can gain a competitive advantage by creating a wide range of innovative products that target all consumer groups from the young to the aged. We will use different advertising strategies such as print media, including magazines, flyers, and newspapers. We will also use broadcast media such as radios and televisions. The company will also utilize different online platforms such as Facebook, Instagram, and Youtube to reach a vast number of individuals. The price of the lemonade will also be lower compared to that of our competitors.
Ways of Generating Revenues
To amass enough capital to start the business, we will obtain funding from banks, our savings as well as invite investors to come on board.
The team qualifications
The members are sourced from different cultural backgrounds hence have a different set of skills and knowledge. As a result, they will bring varying suggestions on how the lemonade can be manufactured to appeal to people from diverse cultures and religions.
Years of Revenues
| Years | Revenue | Expenses | Losses | Profits | Cash | HeadCount |
| 2015 | $200,000 | $400,000 | $200,000 | – | $50,000 | 200 |
| 2016 | $400,000 | $300,000 | – | $100,000 | $100,000 | 300 |
| 2017 | $600,000 | $350,000 | – | $250,000 | $200,000 | 400 |
| 2018 | $700,000 | $400,000 | – | $300,000 | $250,000 | 600 |
| 2019 | $800,000 | $300,000 | – | $500,000 | $400,000 | 800 |
Funding
The amount of funding required is $2,000,000. This will be allocated into advertising, hiring new stuff, packaging, and manufacture of the lemonade.
References
Transparency Market Research (2019). Lemonade Market: Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2019-2027. Retrieved from https://www.transparencymarketresearch.com/lemonade-market.html