Score Business Plan

Jill Davis P.O. Box 387 Yakutat, Alaska 99689 [email protected] 206-219-9115

ALASKAN ADVENTURE ENTERPRISES Business plan for, Icy Bay Glacier Ice Water Essence Concentrate I. II. III. IV.

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Executive Summary General Company Description Products and Services Marketing Plan Economics Product Features & Benefits Customer Information Competition Niche Promotion Promotional Budget Pricing Proposed Location Distribution Channels

I.

Executive Summary

I am writing this business plan for my Glacier Ice Water product, Icy Bay Fountain of Youth Glacier Ice Water Essence Concentrate. The fundamentals of my business are first buying waterfront real estate for the water bottling facility in Yakutat, Alaska. This will be the location for the water plant, warehouse for storage, and office. I will purchase a 80-100 ft. landing craft vessel that will be used for harvesting the glacier ice bergs and transporting them to the plant in Yakutat from Icy Bay. I have an explosive marketing and advertizing campaign planned in my operating budget. My product is melted down glacier ice. The essence and energy of the glacier water is captured and bottled up in a frosted glacier blue glass 16 oz bottle. It is very healthy and makes you feel hydrated and invigorated. It is believed to be the secret fountain of youth. My customers are professional, wealthy individuals that enjoy luxury. The people that buy my product want the best of the best and can afford it. A large portion of my target market is the Japanese demographic. There are a number of similar luxury products that these individuals are already consumers of. My business will be a privately owned partnership. The owners are George and Jill Davis. I am planning to incorporate later and have shares or stocks available for sale. I know the future is bright for this industry. The global bottled water holds a value of $66.6 Billion Dollars. Trends in the market are projected to reach a volume of 165.5 billion liters by 2012. That is an increase of 38.6% from 2008. The global market increased by 7% from 2006-07. All of these figures were found on unitymarketingonline.com, luxury report by Pam Danzinger. I plan on partially financing my venture and trying to find investing capital from private investors for a private loan. I will need 1,550,000.00 for my venture. The money will be used in the following manner; 1.) $200,000.00 for the acquisition of waterfront property in Yakutat, Alaska. This property will be the location of the water bottling facility, and the warehouse for storage and stockpiling water products. There will also be a dock constructed for the landing craft vessel to operate from bringing the glacier ice from Icy Bay, a 65 mile run in the boat. 2.) $250,000.00 for Landing Craft vessel needed to harvest glacier ice in Icy Bay, and transport ice to plant in Yakutat. 3.) $400,000.00 for a 100X100 metal building and water bottling equipment. The metal building will be the bottling plant, office, and have a 2 bedroom apartment. 4.) $500,000.00 for the following • $200,000.00 salaries for employees

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$100,000.00 for insurances and bonds $80,000.00 for alternate energy system to run plant. Includes; windmill and solar panels • $120,000.00 for bottles and shipping and packaging materials 5.) $50,000.00 for marketing campaign. Brochures, a DVD, media and travel to water trade shows 6.) $150,000.00 for miscellaneous costs in advertizing and company expenses I project my first year sales to be 80,000 bottles at $40 dollars a bottle. This will have the company making a gross profit of 3.2 million dollars. I believe this is a very achievable goal. There is a company with a similar water product, Kona Nigara that ships 80,000 bottles a day to Japan. This product is selling for $268 dollars for 16 oz. It is selling for $2144.00 dollars a gallon. With my projection of a 3.2 million dollar gross profit would leave you a nice net profit of 1.6 million dollars if your operating costs were even as high as 50%. That would leave you plenty of money to make a loan payment even as high as $750,000.00. A loan of 1,550,000.00 could easily be paid off within 2 ½ years. I am vey confident in my company and with the fact that Kona Nigra just invested 100 million into expanding their facility must be a good sign. I know this is a great business opportunity. This is a great growth industry despite the economy. I, Jill and my Husband George bring to the table their impeccable reputation. Our existing company brand, Icy Bay Lodge is regarded by many to be the cutting edge and preferred choice with seasoned business persons and entrepreneurs alike. This is due to the excellence in service, demand of quality, and great ideas and management. II.

General Company Description

My business plan for the water project was developed due to the high demand of a pure drinking water product. In addition to the growing demand of pure drinking water, there has been an increasing demand for luxury water products. Market research reveals that this is a fast growing industry and the time is now to get our foot in the door to this billion dollar industry. My plan describes the luxury water product, Icy Bay Glacier Ice Water Essence Concentrate. My product comes from the harvesting of Glacier Ice. The ice is then melted down and the essence is bottled up in a frosted bottle. This product is glacier ice concentrate. Everyone buys water. It is bought in many forms. Water is being delivered by a company to your home, bought in cases, purchased in singles at the supermarket and convenience stores. There are trendy locations called water bars in Los Angeles, and New York. This is where a water connoisseur can purchase chic water by the glass. Las Vegas is a popular place where trendy luxury waters are found. There is a global trend for exotic and chic water. The bottled water boom has become an indispensible prop in

our lives and culture. From lunch boxes, cubical in the office, and cup holder in the treadmill at the gym, bottled water goes to every meeting, lecture and soccer match. You will find that the wealthy enjoy sipping on the most exotic and expensive waters they can find. The Japanese are the largest consumers of these products. My mission statement is to provide a pure quality melted glacier ice product to the consumer. My goals and objectives are to be a leader in the high end luxury water industry. My objective is to meet my annual sales projection of 80,000 bottles a year. Most important is to satisfy my customers. It is important to provide a quality product that is in high demand. My business philosophy is to bring health and rejuvenation to people through my product, and a sense of well being. I will market my product to people that enjoy the finer things in life. To people that want to experience the feeling of health and rejuvenation of drinking glacier ice essence. Mostly these are the people that spend a lot of money on vacations at the most exotic resorts and casinos. I will also be marketing to the Japanese and Chinese markets. These people hold high value to health, and the products that provide that experience. People want to buy my product because it will give them a luxury experience and fulfillment they crave. My clients want exceptional taste and quality. My industry is a growth industry. My research shows that the global bottled water market grew by 8% from 2005-06. From 2006-07 the global market grew by 7%. The current global bottled water market holds a value of 66.6 billion dollars. The trends are projected to reach 165.5 billion liters by 2012. That would be a 38.6% increase from 2008 according to unitymarketingonline report. Alaska is the home to 40% of the US’s fresh water supply. Futurists tell us that fresh drinking water because of scarcity and pollution may be the oil of the 21st century. If so Alaska, with it’s abundance of glaciers and water sheds could become a major player in the world water business. My strengths and core competencies are my husband and I having a background in successful business ventures. My husband, George has experience in building of structures and companies. We are government contractors and have a rapport with local, state and federal government. I have done the research on the regulations for the water business, and will be in strict compliance with all laws. We have been actively promoting this area of Alaska where the product is harvested. We have a major marketing advantage in having made this area of Icy Bay, Alaska famous and have slogans and logos. We have named our area “The Lost Coast”. This area is known to be wild and pristine. The Davis’ have enhanced their reputation to the point that our company brand is regarded by many to be the cutting edge and preferred choice with customers and business associates alike. This is due to the excellence in service we provide. My strengths are having an expertise in sales, marketing and logistics in ordering and shipping of materials and products. I have a background in managing an office and business. I am a college

educated person with a major in Business Administration. My husband has an abundance of expertise in some of the similar fields along with managing personnel and building projects. He also has a background in business. Together we make a successful team. I plan on this business starting as a partnership and later becoming a corporation. My product is a 16 oz bottle of glacier ice water essence. My competitive advantages are having an already established business in Icy Bay, Alaska. Another advantage is having a unique product and being the only one in the area providing that product. The fact that we have been marketing our area to be pristine and pure for the past 20 years is a huge advantage. III.

Products and Services

My product is a melted down ice berg and bottled up capturing the essence of the glacier in a frosted 16 oz bottle. The quality of my product will have to be exceptional to fetch the price of $40 dollars a bottle. I have confidence that the consumers will be highly satisfied with my product and the luxury experience it provides. The best feature is the taste. IV.

Marketing Plan

I have been researching the water industry for over 2 years. I do a lot of product and market research on the internet. I have done a lot of casual and informal verbal interviews with potential customers about my product. By researching this industry for over 2 years has given me a solid background to base my business conclusions about what type of product to provide would be the best fit for me. After all of my research I believe the condensed luxury water would be the best product to provide taking into account all of the advantages and disadvantages of where my business will be located. VI.

Economics

My industry is a global industry. The bottled water market currently holds a value of $66.6 billion dollars. The demand is high. A similar product sells 80,000 bottles a day to Japan. The market trends are projected to grow by 38.6% by the year 2112. There is a huge growth potential for a company of my size and nature. Kona Nigari just spent 100 million dollars in expanding their company to keep up with demand. I believe having a goal of 80,000 bottles a year sales is a very modest figure. I do not really see normal parts of having a company as barriers. I see the best way to accomplish my goals and do what it takes to do that. So for each hurdle I have a way to overcome that hurdle. The high costs of doing business will be overcome by high sales. Training and skills can be overcome by implementing proper training by leaders in the industry. I have researched the technology needed to make my product and have taken care of that. I do not have any problems with unions or shipping costs. If there are exported products I will have to deal with tariffs and quotas. I am going to be a leader in

the industry with a top notch product. I already have a good reputation in my Lodge Business industry and plan to have the same reputation in the water business. Things that could affect my business are government regulations, changes in the economy and industry. Mostly the thing that could affect my company the most is government regulations. If that happens we will just have to do what it takes to comply. Since the water business is thriving in this current economy and growing I believe we should not experience too many problems in that area. Product The features and benefits from a customer point of view are getting to experience a luxury. There is a health benefit of drinking pure glacier water, plus the feeling of rejuvenation and hydration. Feeling young again is another benefit. The most special feature of my product is that we are extracting the pure essence of glacier ice. The water that was formed in this form was made before man or pollution, over 15,000 years ago. This ensures that the customer is getting the purest form of water on earth. Customers My targeted customers are men and women with the average age of 42. The average income for my customer is $139,000.00. The report by Pam Danzinger on luxury item spending shows that this particular demographic are the people that are already purchasing similar products. I am mostly marketing to luxury water distributors. These distributors will be selling my product to high end resorts, hotels and casinos. I believe that the customers in this demographic have a higher income bracket more in the 1 million dollars a year range. I am going to market to the Japanese market. Another area of my customers are the corporate demographic. I plan to market to large corporations that do presentations for their customers or clients. Mostly with those companies that do a lot of business with Japanese companies. I know it would be a benefit to their presentation to bring out my Glacier Ice Water as the beverage in their conference. Competition I have competition so to speak in my beverage category, but I can not find one product that is like mine. I have a very unique product. The first competitor is Kona Nigari. Next are Bling H2O, and Glace. My product comparison to the competition is that Kona water comes from the pacific ocean then desalinized and bottled up. Bling H20 comes from a spring in Tennessee. I think the most special feature of Bling H2O water is the bottle. Glace, has a similar product of melted glacier ice water. They are located on the coast of Canada, on the North West region of the Atlantic. I plan to implement an explosive marketing campaign to advertise my water. I think it is so special and unique that it will be very popular. My competitive advantages are having a Lodge business located in Icy Bay Alaska. I and my husband have and established reputation in the area. We have a background in business and marketing. I have done the research necessary to make this a successful business venture.

Niche Our niche is to be harvesting our glacier ice from the pristine waters of Icy Bay Alaska. Icy Bay is quoted by National Geographic to be one of the ten treasures of the world. We have a practically unlimited supply of glacier ice coming from three glaciers, the Yahtse, Tendall, and Gouyt. We are located on the “Lost Coast” of Alaska, made famous by the marketing done by the Davis’ in the last 20 years. This is a unique area of Alaska that has not been touched by civilization and pollution. Promotion I will be doing internet marketing in the forms of a website and ads. I am going to do direct sales to corporate businesses. I am going to have distributors and agents selling my water, and I am going to do water trade shows with a brochure and marketing media such as a promotional DVD. My image is cutting edge, trendy, and popular. The wealthy, successful, and playful crowd is drinking my water. I want to be thought of as chic. I have a graphic artist ready to print our logo and brochure. I also have a production company to put together a promotional DVD for marketing. I have an auto responding system in place to respond to customers and to identify repeat customers and send out updates on our product. Promotional Budget I plan on spending $50,000.00 on initial advertizing and buying brochures and marketing media. I hope that after our product has established customers and distributors I will not have to spend as much annually. If I need to spend this amount annually to keep sales up that I will.

Pricing My pricing is competitive with similar products. The purchase of my water is not based on price. It is the unique product people are buying. I think it should be competitive, but not the sole reason of the purchase. My product has exceptional taste and quality, and is worth every penny. A 16 oz bottle is $40. Proposed Location The location of where I harvest the glacier ice is Icy Bay, Alaska. The ice then gets transported to Yakutat, Alaska. The boat docks up to the waterfront property, that is the base of operations. The boat is off loaded at the plant and the water is bottled up at the facility in Yakutat, Alaska. I think the place we harvest the glacier ice is important. The ice does not even get to the Gulf of Alaska before it is plucked out of the pristine waters of Icy Bay. It practically gets harvested hours after calving off of the face of the main glacier. This is important as where a grape comes from that wine is being made of.

I plan to have a nice office and conference area for entertaining clients that want to see our facility. These areas will keep up with our image and have trendy furniture and artwork. Customers will expect the best and get it. The plant is in Yakutat, Alaska located on waterfront property in Monti Bay. This is key for the reason of offloading the glacier ice conveniently to the plant. It is also a good location if customers and clients want to see the facility. Most of my sales will be shipped out. I only expect very wealthy clients will actually come to the location. Some big customers may want to see Icy Bay and where the ice is harvested. That can be arranges also. There are air charter services that we can hire to fly over Icy Bay. I also own a lodge in Icy Bay people can stay at for recreation. Distribution Channels I plan to sell my product through distributors and agents. I am also going to have my own marketing team doing direct sales to corporations. I want to sell my product to hotels, resorts and casinos. I would like to do an ad in Playboy magazine. I would like to also do some water trade shows. Implementing my marketing campaign will bring in the income needed to make this an exciting and thriving company. Closing In closing I want to thank you for your time and consideration in reviewing my business plan for Icy Bay Glacier Ice Water Essence Concentrate. I look forward to showing you my product as soon as it comes off of the production line. I hope you will visit my website and make it up to Icy Bay, Alaska. Jill Davis Icy Bay Lodge P.O. Box 387 Yakutat, Alaska 99689 http://www.icybayalaska.com 206-219-9115