7 Marketing Target – Active people, on the go, 15-45. Price Place Controlled by FranchisorAverage $6.00 per drinkPlaceLocation, close to Walmart, Canadian Tire,U of S, growing commercial area.
8 Marketing Product Service – Healthy lifestyle with convenience Fruit Smoothies: Brazilian Thunder, High Impact Acai, Kick Start… etc.Food – Wraps and protien barsMerchandise – T-shirts, Cups, Hats… etc.Service – Healthy lifestyle with convenience
9 Marketing Promotion - Local Mail out to S7NU of STarget gyms with other Booster JuicesSponsor local sporting eventsLarge scale marketing by Franchisor – from royalty agreement
10 Finance Return on investment 18% NPV $245,000 Return on Assets 11% (in the third year)Return on Equity 15% (in the third year)Dividends Policy $20,000 cash in hand
11 Finance Critical Factors: Number of customers Economic Breakeven Interest rateEconomic Breakeven77 customers per day in the first year11% interest rateWorst Case Scenario:60 customers per day and 7% interest rate, $ -48,000 NPV and -6% IRRBest Case Scenario:100 customers per day and 5% interest rate $538,000 NPV and 36% IRR