TOPIC: Bali Drink Financials

Group Members:
Haseeb Ahmed (Mb-141021)
Adil Qureshi

(Mb-141030)

Qamar Hanif

(Mb-141013)

Submitted To:
Sir Ahmed Faraz

Course:
Cost Accounting

Section:
Mba-R (S3)

Submission Date:
8/4/2015

Department of Management Sciences

Muhammad Ali Jinnah University Islamabad
Contents
1|Page

Acknowledgement:..........................................................................................................................3
Introduction:....................................................................................................................................4
Mission............................................................................................................................................4
Vision...............................................................................................................................................4
Objective:.........................................................................................................................................5
SWOT Analysis...............................................................................................................................5
Strengths and Weaknesses...........................................................................................................5
Strengths:.................................................................................................................................5
Weakness:................................................................................................................................5
Market Opportunities and Threats:..............................................................................................5
Opportunities:..........................................................................................................................5
Threats:....................................................................................................................................5
Value Proposition.............................................................................................................................5
Target Market...................................................................................................................................6
Pricing Strategy:..............................................................................................................................6
Business Financial...........................................................................................................................7
Startup Expenses..........................................................................................................................7
Income Statement........................................................................................................................9
Balance Sheet.............................................................................................................................10
Cashflow Statement...................................................................................................................11
Monthly Sales............................................................................................................................12
Cost per Bottle...........................................................................................................................12
Notes..........................................................................................................................................12

2|Page

Acknowledgement:
The success and final outcome of this Final Report required a lot of guidance and assistance from
many people and me extremely fortunate to have got this all along the completion of our project
work. Whatever we have done in this report only due to such guidance and assistance and we
would not forget to thank them. We respect and thanks to Sir. Ahmad Faraz that he has given us
an opportunity to do this project work and providing us all support and guidance which made us
to complete this final report on time. We extremely grateful to him for providing such a nice
support and guidance.

3|Page

Introduction:
Bali is the result of the friendship between classmates. Haseeb, Adil, Qamar, Rabia & Rozina are
five master degree students who want to run a business together and do what they really like.
Which is making good drinks in hot summer.
The name of our product, Bali, is short, distinctive and makes an impact. The company is in the
formation process and it will be a Limited Liability Partnership (LLP), based in Islamabad,
Pakistan. Twin cities are a good place to start a business right now, and it is where two of us are
living at the moment. The production site is Adil house, as it provides enough room for R&D,
production and storage, but as soon as the business grows, we will try to outsource the
production to a drink manufacturer to cut costs and exploit bigger economies of scale. As an
LLP, Bali is a partnership with an agreed distribution of rights and responsibilities.
We do like drinks and we love natural food, we reckon the market lacks of a really high quality,
refreshing soft drink; furthermore, the beverages market has grown at a slower pace than the
food mission is to make good drinks and raise the standards of beverages.
Mission
As one of the largest beverage companies in the world, our mission is to provide consumers
around the world with delicious, affordable, convenient and complementary beverages. We are
committed to investing in our people, our company and the communities where we operate to
help position the company for long-term, sustainable growth.
Vision
We're committed to achieving business and financial success while leaving a positive imprint on
society delivering what we call Performance with Purpose.

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Objective:
The long-term objective is to grow and expand to become a brand. Ginger is a global ingredient,
part of many cuisines around the world. This means that a ginger-based drink can be realistically
introduced in different markets with a strong potential: Pakistan, India, China, Malaysia,
Indonesia, Bangladesh, etc. We think that the most important thing is the startup phase, as we
need to build a strong customer base here in the Pakistan: once the Company has grown in the
Pakistan we predict a rapid growth. Eventually, we will consider going public to raise enough
capital for the internationalization.
SWOT Analysis

Strengths and Weaknesses:

Strengths:
World is ever changing. The pace at which change occurs continues to accelerate. Keeping up
with customer preferences and market is necessity.
Quality Conscious
Market Share
Large Number of Diversity Businesses
Sponsorship

Weakness:
Low Consumer Knowledge
Financial Downfall
Weak Distribution

Market Opportunities and Threats:

Opportunities:
A steady growing market that is traditionally unaffected by the economic environment.
Increasing sales opportunities as more people use lemon.
Threats:
Economy taking a downward turn.
Competition from already established chains.
People consciousness towards large brands.
Value Proposition
The product that we propose is a new type of flavored ginger-based soft drink. Ginger is a
carbonated drink, traditionally popular in the United Kingdom, so we want to bring this product
to south Asian countries like Pakistan, India, China and other such countries but initially starting
from Pakistan. Our new product is a brewed, soft drink made with high quality ingredients and
no coloring or preservatives. Our product is of a completely new formula: fresh and natural
ingredients, refreshing taste, with no alcohol nor CO2.
Target Market
Bali is a ginger based refreshing drink that shall target people of all walks of life and value health
with passion to try something new. Our unique features will enable us to achieve reasonable
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clientele in Twin cities. Initially our target market geographically will be Rawalpindi and
Islamabad (Twin Cities) which we will transfer to other cities later.
Pricing Strategy:
Pricing is one of the key factors determining the fate of the product. Three aspects generally
influence pricing strategy: customer demand, product life cycle and alternatives availability.
Customers are sensitive to tastes and prices. The price range of 330 ml drink with similar
qualities is between 100 and 275. Our product is in the introduction stage and will be sold at 100
until the end of 2015. In 2016 we shall increase our price to 110 to consider the effect of
inflation. In 2017 we shall increase our price to 120 and in 2018 we shall increase our price to
130.

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Business Financial

Startup Expenses

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8|Page

Income Statement

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Balance Sheet

10 | P a g e

Cashflow Statement

11 | P a g e

Monthly Sales

Cost per Bottle

Notes

12 | P a g e