entrepreneurship project of new product launching
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Entrepreneurship project of new product launching(by school of business marshals indore PT Universe)TRANSCRIPT
Shaurya Beverages & Company Shaurya Beverages & Company
Business Plan(2009-2010)
Health Derives Wealth
MAJOR PROJECT
“Business Plan”
SUBMITTED BY Shaurya Group (PGP-1, SPRING, 2009-10) GROUP MEMBERS
Ashutosh Mangal (SBM ID: - 09BM001011A006) Bhupendra Nand (SBM ID: - 09BM001011A038) Dhannu Rawani (SBM ID: - 09BM001011A035) Kailash Patel (SBM ID: - 09BM001011A010) Pooja Bhatia (SBM ID: - 09BM001011A034)
Guided by: - Submitted on : Prof. Jinesh Desai 12-Dec-2009(Campus Coordinator)
Table of ContentsName and address of business Name and address of principalNature of business
Executive Summary Objective Mission Key Success Company Summary Company Ownership Start-up Summary Company Locations and FacilitiesProducts Product Description Competitive Comparison Sourcing TechnologyMarketing Plan Target Market Segment Strategy Distribution Patterns Main Competitors
Contd….. Competitive Edge Marketing Strategy Promotion Strategy Distribution Strategy Marketing Programs Positioning Statement Management Summary Management TeamOperational Plan Description of Company’s operation Flow of order for goods Technology utilizationFinancial Plan Start-up Summary Key Financial Indicators Break-even Analysis Projected Profit and LossBibliography
•Name and address of business
• manufacturing and selling of nonalcoholic health drinks.
• “Shaurya Beverages & Company” and this business will be established in Dhar district of Madhya Pradesh.
•Name and address of principal– Ashutosh MangalEducation – B.Com (Marketing), MBA (Finance)Experience – 2 year in HDFC Bank Mobile No - +91- 94068 69536Email: - [email protected]:- S/o – Mr. Gopal MangalMain road – OjharDistt. – Badawani (MP)Pin – 451550
Name – Bhupendra NandEducation – BBA (Commerce), MBA (Marketing) Experience – 1 year in Pizza Hut Mobile No - +91- 90397 63584 Email: - [email protected]:- S/o – Mr. Babu Lal NandNear Telephone Tower, JhilmilaPS – SaraipaliDistt. – Mahasamund (CG)Pin – 493558
Name – Dhannu Ram RawaniEducation – B.Sc. (Biology), MBA (Marketing) Experience – 2 years as operations managerMobile No - +91- 93036 84604Email: - [email protected]:- S/o – Mr. Sudhir Ram Rawani Near Nirmal Industry New colony, Old ChangorabhanthaRaipur (CG)Pin – 492013
Name – Kailash PatelEducation – B.Sc. (Biology), MBA (Marketing)Experience – 2 years as operations managerMobile No - +91- 97533 99486Email: - [email protected]:- S/o – Mr. C. L. PatelVill – BeltikaryPO – SinghoraTeh+PS – SaraipaliDistt. – Mahasamund (CG)Pin – 493558
Name – Ms. Pooja BhatiaEducation – BBA (Commerce), MBA (Human Resource)Experience – 2 year as an H.R. Manager Mobile No - +91- 98934 41515Email: - [email protected] Address:- D/o – Mr. Laxmichand Bhatia13/1, South tukoganj, Kanchan bajh, Indore (MP)Pin – 452001
Nature of business
• This business will be a partnership firm.
• The Shaurya Beverages & Company will be a manufacturer, distributor and Marketer of nonalcoholic beverage. The finished beverage products with our trademarks will be sold in India.
Executive Summary
• Objective - Of this business is to provide such a product to the people that can be used as totally nonalcoholic cold drink products from coconuts.
• Goal - Strong commitment of our management and associates—to become more competitive and to accelerate growth in a manner that creates value for our shareowners.
Mission – Finest quality beverage in the most efficient time. Provide community support. Operate and grow at a profitable rate through sound economic decisions.
Company Summary Company Ownership- The Shaurya Beverages & Company will be a Partnership firm. All membership shares will be owned by five partners (Ashutosh Mangal, Bhupendra Nand, Dhannu Ram Rawani, Kailash Patel and Ms. Pooja Bhatia) with the purpose of using a portion of the shares to raise capital.
If all funds will raised, based on the pricing established in the financial section of this plan, the five partners (Ashutosh Mangal, Bhupendra Nand, Dhannu Ram Rawani, Kailash Patel and Ms. Pooja Bhatia) will maintain ownership of no less than 51% of the company.
Start-up Summary
The company’s start-up expected expenses 20 lakh, assets 2 crore, and investment 50 lakh and Investor’s share 1.5 crore.
Expenses Assets Investment Investors0
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Company Locations
Land -- 2 Acre 1 Acre = 43560 square ft 2 Acre = 87120 square ftPrice of Agriculture land in Dhar Area Near by N.H. 1 Bigha = 1200000 6.25 Bigha = 1 Acre So, Price of 1 Acre land = 7500,000 2 Acre land = 150,00,000
Products-
Product Brand Name: Coco Crunz Drink Type: Health Drink
Calcium, Ca Iron, Fe Magnesium, Mg Phosphorus, P Potassium, K Sodium, Na Zinc, Zn Copper, Cu
Coconut water (liquid from coconuts)
Fat (lipid) Ash Carbohydrate Fiber, total dietary Sugars, total
Vitamin C, total ascorbic acid Thiamin Riboflavin Niacin Pantothenic acid Vitamin B-6
Its nutritional characteristics, and begins to excitement-
nutritious than whole milk Less fat and NO cholesterol. Coconut Water is more healthier than Orange Juice Coconut Water is better than processed baby milk , It contains lauric
acid, which is present in human mother's milk.
Health Benefits of Coconut Water:-
Kills viruses that cause influenza, herpes, measles, hepatitis C, SARS, AIDS, and other illnesses.
Provides a nutritional source of quick energy. Expels or kills tapeworms, and other parasites.
Competitive Comparison
Fruity Drink Coca-Cola Coconut health drinkIt is not for patients because of chemical preservatives.
It is also not for patients and it is harmful for health of individual.
It is best for patients recommended by doctors it is also good for skin.
It does not contain CO2
but have lots of preservatives in it which are harmful for health.
It contains CO2 in large
quantity so it is not good for health.
It does not contains CO2 and has natural
preservatives which does not affect the heath.
We have made a comparison between our product with the competitor’s product following is the comparisons:
Sourcing -wholesale purchase its green coconuts from Gujarat because the transportation charge will be low from there.
Technology
we will take advice from Engineers -
Equipments For Production:- 1. Drink and beverage mixing
machine- -For mixing all the required
beverages like- coconut water, natural color flavors, natural preservatives, coconut flavors, sweet water etc.
2. Beverage and drink filling machinery
-machine will help us for filling the prepared health drink in bottles.
3. Testing machine
4. Bottle washing machine
for testing the quality of Coco Crunz health drink so that we can come to that the manufactured product is salable or not.
machine will help us for washing all the consumed returned bottles. This machine will help to reduce the high use of manpower in our production plant
5 . Cap fixing machine
This is the machine for fixing the caps in bottles so that drinks could not lick from the bottles . Once all the above process of testing the coconut water, filling the beverages, and packaging the drinkable beverages finishes than comes the stage of tightening up the bottles. This machine helps to tight all the caps in bottles. .
Marketing Plan
Target Market Segment Strategy- Our focus market is on all age group mostly consumed by
Females (age group 15- 30) & generally all category of people and in order to capture the market of health drinks our focus segment will be all age group be it children, youth or old age.
The target will also focus on players .
Distribution Patterns - Distribution flow in Madhya Pradesh & Chhattisgarh
Shivpuri
Korba
Ratlam
Narsimhpur
Dhar
SagarKatni
IndoreSarguja
Rewa
Harda
Raipur
Major competitors
HEALTH DRINK COMPANIES 1.- Mazza
2.- Tropicana health juice
3.- Real juice
4. -Fruity 5. - Appy fizz
SOFT DRINK COMPANIES
Pepsi
Limca
Thumps up
Sprite
Marketing Mix Product Mix 1. Brand 2. Style 3. Color
4. Design 5. Product
line 6. Package 7. Warrant 8. Service
Price Mix1. Pricing strategy2. Pricing Policy3. Basic Price 4. Terms of Credit5. Discounts6. Allowances
Marketing Strategy
Marketing Mix Focused on Target Market
Promotion Mix1. Advertising 2. Publicity3. Sales Promotion a. Dealers
Place Mix Distribution Channels 1. Wholesalers 2. Retailers
Four Ps Four Cs
Product Customer Solution
Price
Customer CostPlace
ConveniencePromotion
Communication
Promotional Strategy
It through web sites which will cost us 10,000 rupees and we will also do the promotions through ads in Orkut and game play.
Road shows in front of colleges and coaching institutes we will give coupons and we will distribute the prizes to the winners.
We will also keep a scratch card and win Kerala trip for 2 nights and 2 days offer and this scratch card will be under the bottle cap.
Name: …………………………………………………………………………….... Age: .....…………….…………….... Phone No: ……………………………………………….. Email: …….…………………………………………………… QUESTIONNAIREQ1. Which drink do you prefer?
Soft drink Hard drink Health drink othersQ2. Which is your favorite drink?
Coca-cola Pepsi Fruity MazzaQ3. As per you what should be the apt price of soft drink?
5 Rs 10 Rs 20 Rs 40 RsQ4. How much quantity do you prefer to drink?
200 ml 500 ml 1 liter 2 liter Q5. How often you use to drink? Thrice a day Twice a day Once a day WeeklyQ6. Do you think carbonated soft drinks affect the health?
Yes No Partially Can’t say Q7. Do you watch advertisements of health drinks?
Always Some time No Can’t say Q8. How do you come to know about new health or soft drinks?
By T.V. By Radio (FM) Hoardings Newspapers Q9. Do you often keep health drink or soft drink at you home?
Always Some time No Can’t say Q10. Do you like to drink Coconut water?
Always Some time No Can’t say Q11. Who is your favorite brand ambassador of soft drink?
Actors Actresses TV Actors TV Actresses
Marketing research analysis - 1.Pie chart of age group %age
28%
32%
22%
12%
6%
Below 1516 - 2526 - 35 36 - 4556 & above
2. % age people use to drink non-alcoholic & alcoholic drinks
39%
55%
4% 2%
Soft drinkHealth drinkHard drinkothers
3. Aware people about harmfulness of cold drinks
80%
10%
6%4%
YesNoPartiallyCan't say
4.-%age of people prefer following drink
20%
10%
5%
50%
10%
5%
Coca ColaPepsiSpriteMazzaFruityAppy fizz
5.-%age people use to drink Coconut water
17%
70%
8%5%
AlwaysSometimeMonthlyNo
6.-Through awareness about the health & Soft drinks
79%
4%
7%
10%
TelevisionRadio (FM)HoardingsNewspapers
Marketing Research
Biggest Wholesaler of coconut in Choithram Mandi
POSITIONING
There will be a point of parity in our approach , our product will be totally different from rest of the health drinks and cold drinks in the following way:
•Image differentiation- that health factor can create a good image• Personal differentiation:-less preservatives as compared to other health drinks
Management Summary
1. Name – Ashutosh Mangal- He has done M.B.A. in Finance & has thorough knowledge about finance management so he will handle the financial department on the post of financial manager.
2. Name – Bhupendra Nand – He has done M.B.A. in Marketing and knows all nitigrity of marketing. So he will handle our marketing Department. 3. Name – Dhannu Ram Rawani- He has completed M.B.A. in Marketing, and has two years of experience in Shri Shai industry as an operations manager that’s why he has good knowledge about how to handle operations, so he will handle our operations department.
4. Name - Kailash Patel – Mr. Patel has done M.B.A in Marketing & has two years of experience in Hanumant Construction Pvt. Ltd. as a marketing manager. So he will be our Product purchasing manager. And he will also handle the CSR department. 5. Name – Ms. Pooja Bhatia- She has done M.B.A. in Human Resource & has a quality to manage the people very effectively. She has also 2 years of experience in Shreemaya industry as an H.R. manager. So she will handle our H.R. Department.
The Production Process section will lays out the details of our business day to day operations. Initially hours of operations - morning 10 am to evening 8 pm. The days the business will be open- Monday to Saturday.
Operational Plan --
The physical plant
Equipment
Assets
Special Requirements
Feasibility
Operational Plan
Finished goods (Coco Crunz)
-- Operational Activity Workflow
Operations
Receivables
Cash Fund
Inventories
Cash
Sales
Credit Sales
Cash CollectionsOperating Expenses
Services &
Production
Work-in-Process
Fig – Flow of working Capital
Requirements of the Business
Working Capital Fixed Capital
Preliminary Expenses
Purchase of Fixed Assets
Establishment Expenses
Fixed Work-ing Capital
Land & Building
Machinery Raw Material
Inventories Work In Progress
Others
Fig – Requirements of the Business
Financial Plan
Start-up Summary - Start – Up Capital Land -------------------------------- 150,00,000 (2acre) Construction------------------------- 250,0000 Machinery----------------------------1155000
Licensing-----------------------------10,000 Total = 18665000 Rs
Operating budget for one month
Expenses In RupeesRent (Telephone and Electricity) 10000Salary 74500Depreciation 9625Insurance 2100Advertisement 70000Total 166225
Initial Marketing Expenses
Hoardings(in prime location) 1 50,000
In local area hoardings 25,000
Leaf-let (100,000) 20,000
News paper advertisement (18*12 340000 for 1 day size)Indore ,Bhopal , Ujjain Road show 20,000
Total = 455000 Rs.
Cost bifurcation Coconut price - 3.00Rs/ per unitTransport - 1.15Ps/per unit
G&ST (16%) - 0.48/per unit Total = 4.63 Rs.
For 500 ml.(In initial stages)Coconut Price - 4.63 Rs.(Incl.Transportation & Tax)Preservatives & - 2.00 Rs.IngredientsOperating fixed Cost - 11.22 Rs.Packaging & Sticker - 2.00 Rs.Distribution - 0.10 Ps.Total = 19.95 Ps.
For 200 ml.(In initial stages)
Coconut Price - 1.85 Rs.Preservatives & - 1.00 Rs.IngredientOperating fixed Cost - 4.54 Rs.Packaging & Sticker - 2.75 Rs.
Distribution - 0.10 Ps.Total = 10.24 Ps.
Sales ForecastIst (month)
Sales - 5500(liter) * 41 = 225500 Less: cost of goods sold - 5500*24.91 = 137000 Gross Profit - 88495 Operating Expenses Advertising - 70000 Salaries and wages - 74500 Commission - 22550 Rent - 8,000 Insurance - 2100 Depreciation - 9625 Miscellaneous - 2000
Total operating expenses - 188775 loss - 100280
2nd (month) Sales - 8000(liter) * 41 = 328000
Less: cost of goods sold - 8000*24.91 = 199280 Gross Profit - 128720 Operating Expenses Advertising - 80000 Salaries and wages - 74500 Commission - 32800 Rent - 10,000 Insurance - 2100 Depreciation - 9625 Miscellaneous - 2500 Total operating expenses - 211525 Loss - 82805
3rd (month)Sales -10000(liter) * 41 = 410000 Less: cost of goods sold - 10000*24.91 = 249100 Gross Profit - 160900 Operating Expenses Advertising - 90000 Salaries and wages - 74500 Commission - 41000 Rent - 10,500 Insurance - 2100 Depreciation - 9625 Miscellaneous - 2500
Total operating expenses - 230225 loss - 69325
Quarterly (1st) (2nd) (3rd)
Sales - 963500 1435000 1722000 Less: cost of goods sold - 585385 871850 1046220Gross Profit - 378115 563150 675780Operating Expenses Advertising - 230000 265000 280000 Salaries and wages - 223500 223500 225000 Commission - 96350 143500 172200 Rent - 30000 32000 32000 Insurance - 6300 6300 6300 Depreciation - 28875 28875 28875 Miscellaneous - 6600 7000 7500
Total operating expenses - 621625 706175 751875
loss - 243510 143025 76095
Quarter 1 Quarter 2 Quarter 3 Quarter 4
ExpensesSalesProfit
Financial Year 2010
Break-Even AnalysisCoconut price for 500 ml - 4.63Rs. .(Incl.Transportation & Tax)Coconut price for 1liter - 9.26 Rs. .(Incl.Transportation & Tax)
Now its for 1 literCoconut price for 1liter - 9.26 Rs. .(Incl.Transportation & Tax)Preservatives & Ingredients - 4.50Packaging & Sticker - 11 Rs. Distribution - 0.15 Ps.
commission - 4.1 PsTotal = 29.01 Ps.(variable cost)
Fixed Cost = 166225 Rs.Variable cost = 29.01 Rs.Sales price = 41.00 Rs.(average price of 1 liter)
Break-even = Fixed cost Sales - Variable Cost
= 166225 41.00 – 29.01 = 13863 liter.We have to sale at least 13863 liter in each month, then we will be reach at our break-even point .
10.0 Bibliography
(1). Sandeep Neogi Manager(Advt.) Dainik Bhaskar 4/5press complex .A.B.road Indore Email- [email protected] (2). Abdul Aziz(Fruit Commission Agent
& Order Suppliers) 29, new fruit market, A.B. Road, Indore(3) Rajesh Bhatnagar
Dy. Manager Madhya Pradesh Financial Corporation “Finance House” A.B. Road Indore-452001 (4) S.R. Kamble Development Officer THE NEW INDIA ASSURANCE CO. LTD D.O-II, Khandelwal chambers, 1st floor, Near M.P.F.C South tukoganj, A.B. Road Indore
(5)
(5) Corporate office & Central Laboratory 6/3 manormakganj, aindore
(6) Book Name - “Small-Scale Industry& Entrepreneurship” Author - Dr. Vasant Desai
(7) INTERNET
Wish You A Bright Future