Coca-Cola, Pepsi, and the Shifting Landscape of the Carbonated Soft Drink Industry

Prepare a 5 year proforma in Excel which projects the revenues, costs, and profits (both earnings before interest, taxes, and amortization (EBITDA) and earnings before taxes (EBT) for a company who enters the U.S. carbonated soft drink industry and who attempts to build a 10% market share position in the U.S. carbonated soft drink industry within a five year time period (please include fixed and variable costs in your analysis). To calculate interest expense, assume that you will need to raise 50% of the capital you require through bank financing at 10% interest. To calculate depreciation expense, assume that only a niche player (with less than 5% market share) can access the bottlers/distributors of Coke or Pepsi, which means you will need to build bottling plants (which you can depreciate using straight line depreciation over a 30 year life). Please provide your assumptions along with a one half page description of your market entry strategy. (Business Strategy Question)