Financial statment
The financial part is crucial in order to finalize a perfect marketing plan. To do it, we need to make some assumptions, which are summarized in the table below.
After analyzing the prices of the other players to have an idea of the prices of premium tequila on the market, we have calculated our costs and estimated revenues. In order to do that we have first found the price fluctuating around €40 for one bottle. Then we have taken a realistic margin of 30% retailers would take. So Quieta will sell for €27 to the retailers while buying the tequila from a wholesaler at €17 per bottle which gives a margin about 40% without taking into account all the costs. For the other costs besides the wholesaler, we took R&D costs into account because our company would pay for the development of a brand new tequila with a unique taste. Of course we also have to take into account the transport costs, the price of the juice, the import taxes, the Pop-up store and other additional costs.
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Quantity of Tequila drunk in Belgium per person (who drinks spirits) per year: 0.25 L
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Quantity of spirits drunk in Belgium per year: 48,749,000 L
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Quantity of Tequila drunk in Belgium per year: 341,000 L
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Percentage reached of Spirits consumer: 0.5%
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Price of a bottle (in Mexico): 17€
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Price to ship it + taxes: €6,500
We observed that in the first year, our company recorded losses. However, this is normal for a start-up with huge upfront costs. R&D is mandatory to correctly launch a brand on a competitive market. In addition, we were pessimistic with our sales as it is a more reasonable way of seeing the project.
For the revenue, we started by taking the number of liters of tequila drunk by people who drinks spirits per year in Belgium, which is 0.25L, so 341,000 liters of tequila consumed in Belgium. Moreover, our company would only reach 0.5% of the spirits drinkers, which gives 1,742 liters of tequila, or 2,500 bottles the first year. So multiplying this by the price of 40€ per bottle would give €70,000 in sales for 2017.
For the next year the amounts spent in R&D would change. And we would reach 0,5% more spirits consumers in Belgium. For the second year, our company believes reaching 0,75% of the people who consume spirits in Belgium is realistic, which gives €105,000 in sales. In the third year there is another increase of 0,25% of the people reached. This gives us €140,000 in sales.
Below, is a plan of our budgeting over the next three years.
