Future Outlook and Raising Capital in the Sports Drink Market

This paper will be talking about a company called Barstool Sports based out of Boston. This paper will be taking an in depth look into the company and its marketing as a whole. There are many topics that will be covered all relating to Barstool sports and marketing. (NEED MORE INFO)

Initial Capital Requirements: - Huge initial development period and very high investment costs, tooling costs, and WIP are necessary even before the company starts

However, individual business loan may not even be enough, therefore, finding partnership with stockholders, or go into business with another person willing to help financially. A large bank loan of $200,000 would be needed and preferably prefer a business partner that would go into business, and preferably a family member. They would also need a second business loan of $200,000.

It has been a serious process for many organizations to raise capital which automatically has business and financial risks involved.

Several businesses fail due to a failure to meet cash obligations in the first two years. Taking a look at how interest on loans and loan repayments will affect cash flow are also important in this scenario. One of the key variables in this case is the loan. In this case we selected a loan of $200,000 because we felt it was a reasonable amount for a loan for a new business and it was enough money to keep the business cash positive through its first year of operations. If a loan cannot be secured, or if a loan of only $100,000 or less could be secured, Robert & Alex may need to look into alternative forms of financing such as angel investors or specialized banks set up by the government to help with new business developments in Canada.

The management of Sports Products Inc. should pursue maximization of shareholders’ wealth as its paramount goal. As far as we know, the stockholders are the owners of the firm and the ones bearing the most risk in running it. In line with this, the board of directors and/or the management is

| Weaknesses: * Pays extra payment for new flavor. * More expensive to produce than other sports drinks. * Deciding the segment to target. * How to position the product in the mind of its potential consumers

Of equal noteworthiness is the competition within the sport drink market. As a potential segment that Crescent could enter, it is vital to realize that the market is primarily controlled by two firms, Gleam and Drip, who hold 73% and 21% of all purchases made. The growth of the market leaves much to be desired however, as it showed only marginal improvements over the years. The projected growth of this segment is only 3.28

The Functional Beverage Group, Inc will maintain an approximate 40% stake in Functional Foods & Beverages, Inc (FFBI). FFBI will have the primary responsibility of manufacturing and market products licensed from The Functional Beverage Group, Inc.

The sports drink industry in Ireland is a highly competitive market, with sales of €203.2 million in 2009 and is predicted to grow to €301mn by 2014 (Euromonitor, 2011). Lucozade Sport has successfully established itself as the clear market leader in the category. It is the driving force in the sector, and is largely responsible for the 85.9% current value growth in the industry between 2004 and 2009 (Euromonitor, 2011).

Nike will have a number of different marketing objectives for their isotonic sports drink, Nike Go. A main market objective will be to establish the isotonic drink as the most credible sports drink in the market. This will not just happen though, this can only happen through a lot of promotion and appeal. Creating strong consumer awareness is very important in gaining market share as it is a completely new product from Nike. This can be done through promoting the product, Nike Go, and allowing consumers to become aware that Nike has this new product. In order to establish brand recognition, there needs to be a capture of market shares in the sports drink segment. This will mean the product, Nike Go, will be well known

There was another problem of setting up capital required by the company for starting the production.

Lucozade Sport uses a strategy which is specific to sportsmen and sportswomen in order to sell their product. I will be analysing the segmentation, targeting and positioning strategy that Lucozade Sport adopt while also talking about how Lucozade Sport’s marketing mix which ensures it stands out from other competitors. The information gathered has been collected from various websites and articles to do with Lucozade Sport.

Raising Capital it one of the most important thing in any business. It's useless having a great idea and the right connections if you don't have the money to get it going. Without capital, your business can't get off the ground. You need it to buy products or materials, pay wages, have a secure cash flow and generally run your business on a day-to-day basis. The most common types of debt capital are bank loans, personal loans, bonds and credit card debt. When looking to grow, a company can raise funds by applying for a new loan or opening a line of credit. This type of funding is referred to as debt capital as it involves borrowing money under a contracted agreement to repay the funds at a later date. With the possible exception of

Banks issue credits to organizations seeking funds for there ventures. The bank usually “prefers a self-liquidating loan in which the use of funds will ensure a built-in or automatic repayment scheme” (Block & Hirt, 2005, Chapter 8, p.