ZENDO Calm + Focus was created on February 20th, 2015. The historical figures presented below cover the period from February 20th, 2015 to September 30th, 2015
The financial plan has been prepared by the fiduciary company Elicompta based in Brussels.
To determine the turnover, we have made assumptions to determine a development plan for the number of outlets using the distribution strategy described under the "Idea” section.
We have thus modelled different distribution stages: 1) Targeted distribution, 2) Distribution via wholesalers 3) Materialisation of agreements with HORECA channels and 4) End of exclusivity (possible with certain wholesalers) to achieve a national presence after 4 years.
The evolution of the distribution network is illustrated below.
We have also considered a quantity sold of 10 bottles of ZENDO Calm + Focus per outlet on the basis of 20 working days per month.
These sales are supported by the go-to-market plan, and the detailed marketing expenses in the following figure.
The unit selling price was set at €0.94 after our many discussions with wholesalers interested in the product.
The unit price of our product will be equal, when it reaches its full stride, to €0.35.The first production runs, being a little more expensive, were also taken into account in the business plan.
Gross margin is therefore 68%.
Cost items such as incentives for wholesalers and retailers, advertising presence, taking part in fairs and logistics are undertaken by the wholesalers. Our sale price to them reflects this and no charges of this nature are to be borne by the ZENDO Calm + Focus accounts.
Marketing expenses were set at 20% of turnover with the exception of Year 1 (2016) for which this percentage is much higher due to the implementation of the launch plan.
For information, a company like Redbull also devotes 20% of its turnover to marketing.
This policy is in line with our desire to become the reference brand in the relaxation drink segment in Belgium and in Europe.
The salary for sales reps was set at €4.9k gross per month for 13.85 months per year plus car.
The salary for administrative employees is set at €4k gross per month for 13.85 months per year.