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Author
Participant
  • The full business plan documents have been submitted for assessment.

  • The plan application has been submitted for assessment.

  • Farmers in Business

    An Agriterra business plan competition for agricultural cooperatives

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Business established

YAKU - Bottled aromatic plant drink

Nutraceutical, environmental friendly fair trade drink

Facts

Year of establishment

2004

Sales (US$)
Two years ago: 10,000
Last year: 16,000
This year (forecast): 24,000
Year 2 (forecast): 31,000
Year 3 (forecast): 45,000
Net profit after tax (US$)
Two years ago: 1,000
Last year: 5,000
This year (forecast): 8,000
Year 2 (forecast): 12,000
Year 3 (forecast): 20,000
Total number of Employees
Two years ago: 2
Last year: 4
This year (forecast): 4
Year 2 (forecast): 5
Year 3 (forecast): 10

Finance needed

Finance needed for fixed assets (buying of machines, buildings, ...) 11,077
Finance needed for working capital (salaries, stock, rental, leasing, transport, ...) 5,413
Total finance needed (US$) 16,490

How do you expect this to be financed? Please note: the total amount mentioned here should be equal to the total finance needed at the previous question.

Own Contribution in cash 4,000
Loans (debt) 12,000
Share capital that you seek from investors (equity) 0
Other sources 0
Total finance needed (US$) 16,000

The Business

What is your product/service?

To produce and commercialize YAKU, based on aromatic plants that, treated and bottled, generates a sports-nutraceutical drink which progressively improves the "physical and mental" performance, low calories, as well as of clean production to offer an alternative.

Products to be commercialized are sports drinks in 3 presentations: Chamomile, Mint, Slimming, and Relaxing

What customer need/problem do your products/services satisfy?

"Yaku" is looking to be differentiated from the notion of "temporary energizing or stimulant", proposing a new concept that exploiting the characteristics of aromatic plants, it allows the client to be hydrated and or/nourished, to improve standard of living through the prevention of diseases, conservation of the figure and improvement of the consumer's figure.

How will you make the product/service?

The aromatic plants are selected based on the 4 products (chamomile, mint, slimming, relaxing), cleaned and purified. To the boiling water a sweetener ("Estevia") is added, as well as a natural preservative ("Macavi"), and then the beverage is bottled.
The bottles have been purified beforehand.
At last, the labels are attached to the bottles, and they are stored at a low temperature (around 3 to 7 degrees Centigrades).

Explain how you will sell your product/service (marketing strategy) and how you will reach your customers (distribution strategy)?

Commercialization strategy shall be focused on positioning Yaku as a product synonymous of “pure nature, clean production, health, and well-being”, strategies that shall be implemented with an estimated annual investment of 10% of the sales in promotion and advertising. Initial distribution shall be made through direct channels (supermarkets, spa centers, and specialized stores) and other more profitable channels shall be developed as the product is positioned in the market. In the first year the product shall be sold in popular stores with no more than 10% of the total production.

To whom are you selling, what is your market?

Market research reflects that the target consumer is formed by the segment of men and women between 22 to 45 years old, who belong to medium and high social-economic levels of Ecuador; who have a restless lifestyle and who are searching for health, convenience, and pleasure in food they consume.

Potential market of nutraceutical drinks in Ecuador is about USD 600.000.

Describe your competitors?

There is no direct competitor for the bottled aromatic water product in the market.
Indirect competition is given in the producers of infusions in Ecuador, who might diversify their products made from aromatic plants, which already are handled by the competition.

There are other enterprises engaged in the production of nutraceutical drinks, but their characteristics are based on artificial products, which give the chance to generate comparative advantages towards the competence. In general, nobody has a natural stabilizer.

What makes your business different/better than your competitors (competitive advantage)?

Competitive advantages are two: 1) 100% natural products based on products that traditionally have been produced in the zones and whose agriculture system has been enhanced to increase production. By being native plants, the adding of pesticides is zero. Stabilizers are natural, result of research and systematization of indigenous knowledge that allows keeping the product up to for 15 days. 2) The drink do not cause addiction, it prevents diseases in a short-term basis. 3) It has natural sweeteners.

What makes your business, your product or service innovative?

Transformation of aromatic plants into a fast-consumption drink, as well as the 100% natural stabilizer, allow to generate a 100% natural drink.

How will you ensure the growth of your business?

The business shall be strengthened through alliances with specialized centers and spa and physical culture centers which position the business. Lately, it is intended to develop a positioning strategy at a country level, with massive means always associated to means canalizing the marketing to the above-mentioned target.

The Entrepreneur & Management

Describe the entrepreneur & management

Daniel Casañas native-born of the are, professional in agriculture and agribusiness, with 10-year experience in developing and implementing rural development experiences, especially in enhancing products based on fair trade and agro-ecological production.

Daniel Casañas will be responsible for implementing the business plan in his capacity as Manager. The support team shall be formed by one technical assistant who shall perform the accounting and general administrative work of the company. There will be and agro-industrial Engineer in charge of YAKU production and of quality control of raw material quality.
There will be a 3 salespersons team in charge of the sale zones.

What specifically makes you and (if relevant) your management team most qualified to build this business?

The team consists of an agribusiness and market specialist, as well as an agro-industrial engineer and specialist in business administration.

How much time do/will you expect to spend per week in the business?

1 day in sourcing of raw materials, 3 days with production and parallel to that 5 days spent with distribution.

Development

How does your business improve the local living standards (social and environmental)?

“Yaku” productions is based on a business model in which the production is grounded in plantations which naturally has been grown in the zone and therefore are compatible with the ecological system, for which pesticides are not added. It is necessary to point out that this production strategy is in the frame of the community’s environmental services plan.

The business model strengthens the community in economical terms, due to annual contracts are generated over the production that is delivered as raw material, and that also has preferential prices. On the other hand, producers have access in its entirety to profits generated by the business.