Zobo Drink Business Plan [Sample Template]

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A Zobo drink business refers to a business venture centered around the production and sale of a popular Nigerian beverage called Zobo. Zobo is a refreshing and tangy drink made from the dried petals of the hibiscus plant (Hibiscus sabdariffa), which is commonly known as sorrel in some regions.

The Zobo drink business belongs to the beverage industry and available data shows that the global beverage industry is projected to grow by 12.80 percent (2023 – 2027) resulting in a market volume of US$380.50 billion in 2027.

Steps on How to Write a Zobo Drink Business Plan

Executive Summary

Akin Benson® Zobo Drink Company, Inc. is a startup beverage company that specializes in the production and distribution of premium-quality Zobo drinks. We are set to offer a refreshing and authentic taste experience to consumers while promoting the rich cultural heritage of the Nigerian Zobo drink.

Our business model will revolve around the production of Zobo drinks, and adhering to strict quality control standards. We will establish strategic partnerships with reliable suppliers to ensure a steady supply of high-quality ingredients. Our distribution channels will include both online platforms and partnerships with local retailers, allowing us to reach a wide range of customers.

The founding team of Akin Benson® Zobo Drink Company, Inc. comprises individuals with extensive experience in the food and beverage industry.

We have a deep understanding of the Zobo drink market and are dedicated to delivering exceptional products to our customers. Our team is passionate about promoting Nigerian culture through our beverages and creating a brand that consumers trust and love. Akin Benson is the founder and CEO of Akin Benson® Zobo Drink Company, Inc.

Company Profile

a. Our Products and Services

At Akin Benson® Zobo Drink Company, Inc. we are committed to delivering the highest quality Zobo drinks made from carefully selected hibiscus petals and a blend of natural ingredients. Our beverages will be available in various flavors, catering to different consumer preferences. We will focus on using organic and locally sourced ingredients to ensure a premium and authentic taste.

b. Nature of the Business

Our Zobo drink company will operate the business-to-consumer business model.

c. The Industry

Akin Benson® Zobo Drink Company, Inc. will operate in the beverages industry.

d. Mission Statement

At Akin Benson® Zobo Drink Company, Inc., our mission is to craft and deliver the finest and most authentic Zobo drinks to our customers. We are dedicated to preserving this beloved Nigerian beverage while offering a refreshing, healthy drink option.

We strive to exceed our customers’ expectations by using only the highest quality ingredients, promoting sustainable practices, and fostering a sense of community through our brand.

e. Vision Statement

Our vision at Akin Benson® Zobo Drink Company, Inc. is to become the leading brand in the Zobo drink industry, both domestically and internationally. We aim to be recognized for our commitment to quality, innovation, and customer satisfaction.

f. Our Tagline (Slogan)

Akin Benson® Zobo Drink Company, Inc. – Africa Heritage, Healthy Beverage!

g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)

Akin Benson® Zobo Drink Company, Inc. will be formed as a Limited Liability Company (LLC). The reason why we are forming an LLC is to protect our personal assets by limiting the liability to the resources of the business itself. The LLC will protect our CEO’s personal assets from claims against the business, including lawsuits.

h. Our Organizational Structure

Chief Executive Officer (Owner)
Production Manager
Accountant (Cashier)
Zobo Maker
Salesgirls and Salesboys
Cleaners

i. Ownership/Shareholder Structure and Board Members

Akin Benson (Owner and Chairman/Chief Executive Officer) 52 Percent Shares
Wale Thomas (Board Member) 18 Percent Shares
Joe Rhodes (Board Member) 10 Percent Shares
Daniel Bola (Board Member) 10 Percent Shares
Remi Cole (Board Member and Secretary) 10 Percent Shares.

SWOT Analysis

a. Strength

Zobo drinks offer a distinct and refreshing taste, setting them apart from other beverages in the market.
Zobo drinks have deep roots in Nigerian culture, allowing Akin Benson® Zobo Drink Company, Inc. to connect with consumers on an emotional and nostalgic level.
Zobo drinks are known for their numerous health benefits, including high antioxidant content and potential blood pressure regulation, appealing to health-conscious consumers.
Akin Benson® Zobo Drink Company, Inc. will prioritize using high-quality hibiscus petals and organic ingredients, ensuring a premium taste and attracting discerning customers.
The founding team has extensive knowledge and experience in the food and beverage industry, providing a strong foundation for success.

b. Weakness

As a new entrant in the market, Akin Benson® Zobo Drink Company, Inc. may face challenges in building brand recognition and competing against established competitors.
Scaling up production while maintaining product quality could be a potential weakness that requires careful planning and investment.
Developing a robust distribution network, both online and offline, maybe a challenge initially and could impact the reach of the product.

c. Opportunities

With increasing consumer interest in natural and nutritious beverages, the market for Zobo drinks is expanding, providing an opportunity for Akin Benson® Zobo Drink Company, Inc. to capture a larger customer base.
Zobo drinks have gained popularity beyond Nigeria, presenting an opportunity for Akin Benson® Zobo Drink Company, Inc. to explore international markets and establish a global presence.
Collaborating with local cafes, restaurants, and health stores can help Akin Benson® Zobo Drink Company, Inc. reach a wider audience and build brand visibility.
Leveraging e-commerce platforms and online marketplaces can enable Akin Benson® Zobo Drink Company, Inc. to reach a broader customer base and expand its distribution reach.

i. How Big is the Industry?

The Zobo drink industry is a significant part of the beverages industry and it considers a very big industry that is projected to be worth about US$380.50 billion in 2027.

ii. Is the Industry Growing or Declining?

The beverage industry is experiencing a growing demand for unique and natural beverages. With its tangy flavor and numerous health benefits, Zobo has gained popularity not only in Nigeria but also in international markets. As a matter of fact, the global beverages industry is projected to grow by 12.80 percent (2023-2027) resulting in a market volume of US$380.50 billion in 2027.

iii. What are the Future Trends in the Industry?

The future trends in the Zobo drink and the beverages industry are focused on meeting changing consumer demands for healthier, sustainable, and personalized products while continuing to innovate with new flavors, textures, and packaging.

E-commerce is expected to continue to grow in the beverages industry, as consumers increasingly purchase products online. Manufacturers are offering online ordering and delivery options to meet this demand.

iv. Are There Existing Niches in the Industry?

No, there are no existing niches when it comes to the Zobo drink business because the Zobo drink business is a niche idea in the beverages industry.

v. Can You Sell a Franchise of Your Business in the Future?

Akin Benson® Zobo Drink Company, Inc. has plans to sell franchises in the nearest future and we will target major cities with growing Nigerian communities in the United States of America, the United Kingdom, and Canada.

d. Threats

The beverage industry is highly competitive, with established players and new entrants vying for market share. Competitors may have larger marketing budgets and well-established distribution networks.
Price sensitivity among consumers and aggressive pricing strategies from competitors may impact Akin Benson® Zobo Drink Company, Inc.’s ability to maintain competitive pricing while ensuring profitability.
Compliance with food safety and health regulations is crucial and failure to adhere to these standards could lead to reputational damage and legal issues.

i. Who are the Major Competitors?

The Coca-Cola Company
PepsiCo, Inc.
Keurig Dr. Pepper Inc.
Starbucks Corporation
Nestlé Waters North America
Monster Beverage Corporation
Anheuser-Busch InBev
The Boston Beer Company
Red Bull GmbH
Arizona Beverages USA
Ocean Spray Cranberries, Inc.
Constellation Brands, Inc.
National Beverage Corp. (makers of LaCroix)
The J.M. Smucker Company (makers of Dunkin’ Donuts coffee)
Danone North America
The Hain Celestial Group, Inc.
Campbell Soup Company (makers of V8 juices)
Molson Coors Beverage Company
Bigelow Tea Company.

ii. Is There a Franchise for Zobo Drink Business?

No, there are no franchise opportunities for the Zobo drink business.

iii. Are There Policies, Regulations, or Zoning Laws Affecting the Zobo Drink Business?

Yes, there are policies, regulations, and zoning laws that affect beverage companies in the United States. The US Food and Drug Administration (FDA) regulates food safety standards, including those for beverage products. Manufacturers need to comply with federal regulations for labeling, ingredient safety, and food handling practices.

The Occupational Safety and Health Administration (OSHA) sets standards for worker safety in the manufacturing industry, including those for beverage production facilities. beverages production companies need to comply with federal, state, and local environmental regulations, including those related to waste disposal, emissions, and hazardous materials handling.

Zoning laws dictate where and how manufacturing facilities can be located. Companies need to comply with local zoning laws that specify which areas are zoned for industrial or manufacturing use.

Beverage production companies need to comply with federal and state labor laws, including minimum wage, overtime pay, and workplace safety standards. Beverage production companies that import or export products need to comply with customs and trade regulations.

Marketing Plan

a. Who is Your Target Audience?

i. Age Range

Our target market comprises people of all ages.

ii. Level of Educational

We don’t have any restrictions on the level of education when profiling our target market.

iii. Income Level

There is no cap on the income level of those who are looking to sell Zobo drinks.

iv. Ethnicity

There is no restriction regarding the ethnicity of the people, we are looking forward to selling our Zobo drinks to.

v. Language

There is no restriction regarding the language spoken by the people we will sell our Zobo drinks to.

vi. Geographical Location

Anybody from any geographical location is free to purchase our Zobo drinks.

vii. Lifestyle

Akin Benson® Zobo Drink Company, Inc. will not restrict any customer from purchasing Zobo drink from us based on their lifestyle, culture, or race.

b. Advertising and Promotion Strategies

Build Relationships with players in the sports industry, the event planning industry, and the food services industry.
Deliberately Brand All Our Vans and Delivery Bikes.
Develop Your Business Directory Profiles
Tap Into Text Marketing
Make Use of Bill Boards.
Share Your Events in Local Groups and Pages.
Turn Your Social Media Channels into a Resource

i. Traditional Marketing Strategies

Marketing through Direct Mail.
Print Media Marketing – Newspapers & Magazines.
Broadcast Marketing -Television & Radio Channels.
Out-of-Home” marketing (OOH marketing) – Public Transits like Buses and Trains, Billboards, Street shows, and Cabs.
Leverage direct sales, direct mail (postcards, brochures, letters, fliers), tradeshows, print advertising (magazines, newspapers, coupon books, billboards), referral (also known as word-of-mouth marketing), radio, and television.

ii. Digital Marketing Strategies

Social Media Marketing Platforms.
Influencer Marketing.
Email Marketing.
Content Marketing.
Search Engine Optimization (SEO) Marketing.
Affiliate Marketing
Mobile Marketing.

iii. Social Media Marketing Plan

Start using chatbots.
Create a personalized experience for our customers.
Create an efficient content marketing strategy.
Create a community for our target market and potential target market.
Gear up our profiles with a diverse content strategy.
Use brand advocates.
Create profiles on relevant social media channels.
Run cross-channel campaigns.

c. Pricing Strategy

When working out our pricing strategy, Akin Benson® Zobo Drink Company, Inc. will make sure it covers profits, insurance, premium, license, and economy or value and full package. In all our pricing strategy will reflect;

Penetration Pricing
Cost-Based Pricing
Value-Based Pricing
Competition-Based Pricing.

Sales and Distribution Plan

a. Sales Channels

Our channel sales strategy will involve using partners and third parties—such as referral partners, affiliate partners, strategic alliances in the sports industry, the event planning industry, the food services industry, and freelancers to help refer customers to us.

Akin Benson® Zobo Drink Company, Inc. will also leverage the 4 Ps of marketing which is place, price, product, and promotion. By carefully integrating all these marketing strategies into a marketing mix, we can have a visible, in-demand service that is competitively priced and promoted to our customers.

b. Inventory Strategy

The fact that we will need ingredients (dried petals of the hibiscus plant, water, sweeteners, citrus fruits, cloves, ginger, pineapple, spices such as cinnamon, nutmeg, or allspice, cups, straws, and bottles et al), means that Akin Benson® Zobo Drink Company, Inc. will operate an inventory strategy that is based on a day-to-day methodology for ordering, maintaining and processing items in our warehouse.

We will prioritize freshness, quality, and timely availability while minimizing waste and optimizing costs. Akin Benson® Zobo Drink Company, Inc. will make sure we work with “Just-in-time (JIT) inventory” – (JIT involves holding as little stock as possible, negating the costs and risks involved with keeping a large amount of stock on hand.)

c. Payment Options for Customers

Here are the payment options that Akin Benson® Zobo Drink Company, Inc. will make available to her clients;

Bank Transfers
Cash
Credit or Debit Card
Checks
Electronic Payment Systems such as PayPal or Venmo

d. Return Policy, Incentives, and Guarantees

At Akin Benson® Zobo Drink Company, Inc., offers refunds or replacements for any quality-related issues. The returned products should be in their original packaging and in resalable condition.

Implement a loyalty program where customers can earn points for every purchase and redeem them for discounts, free products, or exclusive offers. Offer regular discounts, such as buy-one-get-one-free deals or percentage discounts on bulk orders, to encourage repeat purchases and attract new customers.

Guarantee that our Zobo drinks are made and delivered fresh. If customers receive expired or stale products, provide a replacement or refund. Promise customer satisfaction and offer refunds or exchanges for customers who are not satisfied with their purchase.

e. Customer Support Strategy

Our customer support strategy will involve seeking customer feedback. This will help us provide excellent customer service to all our clients. We will work with effective CRM software to be able to achieve this.

We will offer subscription plans where customers can receive regular deliveries of Zobo drinks at a discounted price. We allow customers to personalize their Zobo drinks by choosing from a range of flavors, sweeteners, or additional ingredients.

We will commit to responsive and helpful customer service, resolving any inquiries or concerns promptly and professionally.

Operational Plan

Our operational plan will cover details of the day-to-day operations of the business, including the production process, equipment, staffing, and customer service.

a. What Happens During a Typical Day at a Zobo Drink Business?

The business is open for the day’s work
The serving area and kitchen are cleaned and ready for the day’s business
Zobo ingredients are purchased, and Zobo drinks are produced
Customer’s orders are taken, and they are served, or their orders are delivered to them
The cashier collects cash and reconciles accounts for the day
Administrative duties are carried out
The store or warehouse is restocked when required.
The business is closed for the day.

b. Production Process

The following is a brief summary of each step in the production process of our Zobo drink:

Preparation of Ingredients:

Gather dried hibiscus petals.
Clean the hibiscus petals to remove any impurities or debris.
If desired, prepare other ingredients like ginger, pineapple, or spices by washing, peeling, and chopping them as necessary.

Boiling:

In a large pot, add water and bring it to a boil.
Once the water reaches a rolling boil, add the hibiscus petals and any additional ingredients like ginger or spices.
Reduce the heat and allow the mixture to simmer for about 15-20 minutes. This process extracts the flavors and nutrients from the ingredients.

Straining:

After simmering, remove the pot from the heat and strain the liquid using a fine mesh sieve or cheesecloth.
Press down on the solids to extract as much liquid as possible while separating them from the plant materials.

Sweetening and Flavoring:

Return the strained liquid to the pot or a clean container.
Add sweeteners like sugar, honey, or alternative sweeteners to taste. Stir well to dissolve the sweeteners completely.
If desired, add flavorings like pineapple juice, lemon juice, or other fruit juices to enhance the taste. Adjust the flavors according to preference.

Cooling and Storage:

Allow the Zobo drink to cool to room temperature.
Once cooled, transfer the Zobo drink to bottles or containers for storage.
Seal the containers tightly and refrigerate the Zobo drink to preserve freshness.

c. Service Procedure

The service procedure for a Zobo drink business starts with a customer requesting Zobo drinks. Once the request is received, it will be processed, the customer will be served, or the order will be delivered to a location as requested.

d. The Supply Chain

The supply chain for our Zobo drink business involves coordinating with suppliers, transportation companies, and distributors to ensure that high-quality ingredients are sourced, processed, and packaged, and Zobo drinks are delivered to customers efficiently and effectively.

Good communication and planning are critical to managing the supply chain and ensuring that the business can meet customer demand.

e. Sources of Income

Akin Benson® Zobo Drink Company, Inc. will make money from selling different flavors of Zobo drinks.

Financial Plan

a. Amount Needed to Start your Zobo drink Manufacturing Company?

Akin Benson® Zobo Drink Company, Inc. would need an estimate of $85,000 to successfully set up our Zobo drink manufacturing company in the United States of America. Please note that this amount includes the salaries of all our staff for the first month of operation.

b. What are the Costs Involved?

Business Registration Fees – $750.
Legal expenses for obtaining licenses and permits – $1,300.
Marketing, Branding, and Promotions – $3,000.
Business Consultant Fee – $2,500.
Insurance – $2,400.
Rent/Lease – $35,000.
Other start-up expenses include commercial satellite TV subscriptions, stationery ($500), and phone and utility deposits ($1,800).
Operational Cost (salaries of employees, payments of bills et al) – $30,000
Start-up Inventory – $22,000
Store Equipment (cash register, security, ventilation, signage) – $1,750
Furnishing and Equipping – $20,000
Website: $600
Opening party: $3,000
Miscellaneous: $3,000

c. Do You Need to Build a Facility? If YES, How Much Will it Cost?

Akin Benson® Zobo Drink Company, Inc. will not build a new facility for our Zobo drink business; we intend to start with a long-term lease and after 5 years, we will start the process of acquiring our own shop facility.

d. What are the Ongoing Expenses for Running a Zobo Drink Production Company?

The cost of purchasing hibiscus petals, sweeteners, flavorings, and other ingredients required to produce Zobo drinks.
Expenses associated with purchasing bottles, caps, labels, and packaging materials for storing the Zobo drinks.
Salaries and wages for production staff, including production supervisors, technicians, and packaging personnel.
Regular payments for electricity, water, gas, and other utilities
Costs related to the maintenance and repair of production equipment, such as boilers, mixers, and bottling machines.
Rent or Lease
Marketing and advertising
Costs involved in creating and printing labels, packaging designs, and branding materials for your Zobo drinks.
Expenses related to shipping, distribution, and logistics, including transportation costs, warehousing fees, and third-party logistics services if applicable.
Administrative expenses such as office supplies, software subscriptions, accounting services, legal fees, and insurance premiums.
Licensing and permits
Employee benefits such as health insurance, retirement plans, and paid time off.
Miscellaneous expenses.

e. What is the Average Salary of your Staff?

Chief Executive Officer – $55,000 Per Year
Production Manager – $45,000 Per Year
Accountant – $35,630,000 Per Year
Zobo Drinks Maker – $35,500 Per Year
Salesmen and Saleswomen – $26,000 Per Year
Cleaners -$24,000 Per Year

f. How Do You Get Funding to Start a Zobo Drinks Production Company?

Raising money from personal savings and the sale of individual stocks and properties
Raising money from investors and business partners
Sell shares to interested investors
Applying for a loan from your bank/banks
Pitching your business idea and applying for business grants and seed funding from the government, donor organizations, and angel investors
Source for soft loans from your family members and friends.

Financial Projection

a. How Much Should You Charge for Your Product/Service?

We will charge between $3 to $5 or more per cup of Zobo drink and this will be depending on the additional ingredients.

b. Sales Forecast?

First Fiscal Year (FY1): $180,000
Second Fiscal Year (FY2): $260,000
Third Fiscal Year (FY3): $375,000

c. Estimated Profit You Will Make a Year?

First Fiscal Year (FY1) (Profit After Tax): $90,000
Second Fiscal Year (FY2) (Profit After Tax): $150,000
Third Fiscal Year (FY3) (Profit After Tax): $240,000

d. Profit Margin of a Zobo Drink Production Company Product/Service

The ideal profit margin we hope to make at Akin Benson® Zobo Drink Company, Inc. will be between 20 and 50 percent depending on the additional ingredients, pack, and size.

Growth Plan

a. How do You intend to Grow and expand? By opening more retail outlets/offices or selling a Franchise?

Akin Benson® Zobo Drink Company, Inc. will grow our Zobo drink production company by first opening other shop outlets in key cities in the United States of America within the first five years of establishing the business and then will start selling franchises from the seventh year in the United Kingdom, and Canada.

b. Where do you intend to expand to and why? (Geographical Locations)

Akin Benson® Zobo Drink Company, Inc. plans to expand to the following cities;

Houston, Texas
Atlanta, Georgia
Dallas, Texas
New York City, New York
Washington, D.C.
Chicago, Illinois
Los Angeles, California
Baltimore, Maryland
Minneapolis, Minnesota
Boston, Massachusetts.

We are expanding to these cities because these cities have vibrant Nigerian communities and offer a range of cultural events, organizations, and businesses catering to the Nigerian diaspora.

Exit Plan

The founder of Akin Benson® Zobo Drink Company, Inc. plans to exit the business via family succession. We have positioned structures and processes in place that will help us achieve our plan of successfully transferring the business from one family member to another and from one generation to another without difficulties. We have successfully developed a detailed transition plan to smoothly hand over responsibilities to the new successor.