Small And Medium Enterprise Development - Example

The paper "Small And Medium Enterprise Development" is a perfect example of a Marketing Business Plan. The business plan will describe in detail the Sweetex Beverage Company limited’s establishment in Sydney Australia. Sweetex beverage juices will be modeled after proven technologies used by internally recognized brands like Jamba juice from the US. Sweetex beverage juices will have their emphasis on improved nutritional value, health care as well as attractive pricing. In this regard, we have conducted a detailed SWOT analysis with an aim of determining major internal and external factors that will face Sweetex Beverage Company limited.

The key internal factors that we have identified include seasonal sales, employee satisfaction, the introduction of our new concept on healthiness and nutritional value. On the other hand, the main external factors identified included direct competition, seasonal sales, location, labor, social trends, marketing, and promotion. The above factors were vital in the formulation of Sweetex Beverage’s key strategy seeing that they have a great impact on our operations.

Sweetex Beverage company limited aims at adopting value pricing for our products with price levels being set at $7 for 2litres, $4 for 1litre and $2.25 for 500ml cans. Each liter of juice is hence expected to have a $1.4 contribution margin on average. Our pricing compares fairly with our competitor's pricing but given our high quality of juices, we will in no doubt be able to attract a lot of positive attention both from the locals and the tourists. Bearing in mind the high level of competition for beverage companies in Sydney, our adoption of value pricing strategy will in no doubt ensure sustained strong demand for our products. We intend to conduct our advertisements through the radio, posters, billboards, the internet, word of mouth as well as other mass media channels. All our inputs will be secured from local producers at predetermined contract prices that will run for at least one year to shield ourselves and the customers from price fluctuations.

We target a large market of 6 million people both in Sydney and the neighboring cities. Furthermore, we expect that our market will be boosted by the large number of tourists who tour Sydney every year. Owing to the large consumer potential, we are confident that just a small market penetration will lead to profits. In addition, based on our fixed costs, we require to sell 25,500 liters of juice annually to break even which is achievable given that our competitors are able to sell more than 130,000 liters of juice every year despite operating in markets with less potential.

We project revenue of $ 580,000 during the first year of operation. This should give us a profit after tax of $200,000. In addition, our projected financial ratios are intended to ensure we remain competitive within the industry. The business plan will reduce unnecessary debts and help us maximize our sales potential which will enable us to achieve a profit margin of between 15% and 35% within the first five years of operation which will be higher than the industry average. The ownership of Sweetex Beverage Company Limited will provide $ 90,000 of the required start-up capital while an additional $150,000 loan will be secured to provide for the remaining capital. The $100,000 will be used for start-up expenses while the loan will be used for purchasing equipment, property, and fixtures.