executive summary new

8/2/2019 Executive Summary New

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1.1. OrganizationOrganization

Decent group of industries is a partnership organization which is a collection of young

independent individuals having different market backgrounds. This organization is going to

start its operations from Bahawalpur, and with the passage of time and business growth it

will expand its operation in other major cities of Pakistan.

Organization is offering 2 types of products at initial level, cooking oil, Banaspati

ghee, and also laundry soap as semi finished product. Cooking oil (Oilum Cooking Oil) is

designed on the ingredients that are fats free and they provide good health for their

customers. Its main focus is the heart and diabetes patients who want cholesterol free food.

Banaspati Ghee (Oilum Banaspati Ghee) is designed for those who wants delicious taste

with less fats and healthy food. It is designed on the ingredients which provide good taste

and vitamins and Desi ghee taste in their food.

2. The projectThe project

Every 10th person in Pakistan is heart patient. Main reason behind this is that

cooking oil they are using is not completely cholesterol free thats why they are suffering

from such type of diseases. The product Oilum that we are offering is totally developed

while considering all the health factors. Oilum is for every person who is health conscious.

And Banaspati ghee that we are offering is also developed while considering fat free and

great taste to make delicious dishes.

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Oilum cooking oil and Vegetable ghee is a manufacturing plant proposed to set up near

Noorpur, Karachi road Bahawalpur. The proposed project site enjoys the benefits of easy

availability of raw material, quick access to the markets of Pakistan as it is located on the

main road, source of power and electricity & transportation. The project will be equipped

with most locally manufactured plant and machinery and rest of equipment will be

imported from China.

3. Sponsors

Organization has different specialization background personals such as marketing, finance

and human resource backgrounds. All of them have good skills in their respective fields

and management skills.

The sponsors of the project are highly qualified and experienced people who have

extensive knowledge of business management in industrial fields, namely

Ch.Jamshaid Latif

Abdullah Shaiq

Malik Madni

Kalsoom Akhtar

Sehrish Nisar

Benish Shahid

Syed Shoaib Kazmi

Ch.Ghazanfar Adnan

Saif-u-Din Sial

Hafiz Riaz

4. Market

There is an intense competition in the market but there are opportunities in the market for

this organization. Competitors are strong in the market and they have a large market

coverage and share. But potential is always present in the FMCG sector.

Our site is centrally located in Pakistan from where we can easily get access to the markets

of the country. We have some competitors but its success and profitability is very much

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related to its low cost and high quality. Oil and Ghee is basic ingredient of every meal so it

has high demand locally and nationally.

We will start our Business from Bahawalpur region and then we will go to national level.

Plants location is in Bahawalpur that is an agricultural area, so raw material will be easily

available and due to its location near Karachi road makes distribution easy. Some

ingredients that we have to import they also will be easily accessed because the road from

Bahawalpur to Karachi is good and transportation costs are comparatively less in

Bahawalpur as to other major cities of Pakistan. Due to less costs we will provide best

quality to our customers as compared to less prices then other competitive national brands.

5. Plant capacity

The 100% capacity of plant is 150 Tons per day, of which 50 Tons would be the production

of Oilum Cooking oil and 100 Tons of Oilum Vegetable Ghee. We will start production

from 50% capacity and will be increased 10% every year.

6. Material and input

The basic raw material required for producing Oilum cooking oil is Canola oil which will

be imported from Canada and Palm Olein oil for ghee will be imported from Malaysia.

Other inputs like Caustic Soda, Fuller Earth, Common Salt, Antioxidant, Citric Acid, and

Nickel Catalyst are available in Pakistan.

7. Project Engineering

The plant and machinery used for production consist of STORAGE SECTION, PRE-

REFINING SECTION, HYDROGENATION SECTION, POST-REFINING SECTION,

GHEE FILLING SECTION, REFRIGERATION SECTION, STEAM GENERATION,

SOAP SECTION, WATER PUMP SECTION, HYDROGEN GAS GENERATION &

STORAGE SECTION, CO2 GAS SECTION, ELECTRIC SECTION, TIN SHOP FOR 5

KG & 2.5, MACHANICAL WORKSHOP, TIN SHOP FOR 16 KG.

7. Man Power

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Mainly three types of man power is required, production labor consist of skilled, semi

skilled and unskilled and Admin staff that includes skilled workers.

8. Implementation:The total time period for the installation & execution of output is estimated to be 6 months

from the date of approval of finance.

9. Estimated Cost: Rs.(000)

Total fixed cost of project 168314

+ Initial permanent working capital 177551_ ____

Total cost of Project 345865

10.Financial analysis/means of financing:

Sixty percent of Estimated cost of the proposed project will be obtained through loan and

remaining 40% will be contributed by the owner.

Rs. (000)

Debt 207519

Equity 138346

Total 345865

Debt equity Ratio

60%: 40%

11. Financial Assistance:Rs. will be obtained from Allied bank limited Bahawalpur.

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12. Estimated operating Results:

ITEMS 2011

Rs.000

2012

Rs.000

2013

Rs.000Sales 2110562 2643757 335670

Gross profit 329201 426660 712215

Operating profit 279334 365363 635818

Net profit 151894 203994 368519

13. Financial Position:(Rs.000)

ITEMS 2011 2012 2013

Current Assets 438505 678224 1153178

Fixed Assets 156582 145909 135237

Intangibles 707 353 0

14. Financial Ratios:( Rs.000)

ITEMS 2011 2012 2013

Current Ratio 4.03 4.65 4.52

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Quick Ratio 3.06 3.74 3.86

Debt Ratio 33% 22% 13%

Gross Profit Ratio 15.59% 16.13% 21.21%

Net Profit Ratio 7.19% 7.71`% 10.97%

Economic Indicators:

The proposed project will contribute to the GDP by Rs. by providing Employment to

workers and adding quality products in the market to make it more competitive.

Background and History

Project idea:

The Pakistan Vanaspati Manufacturers Association (PVMA) came into being with only 7

units as its members in 1961. This Association has been growing remarkably and now it

comprises of 94 members engaged in the manufacture of Vegetable Ghee/ Cooking Oil in

the organized sector contributing around Rs.30 billion annually to the government

exchequer in the form of Custom Duty, Federal Excise Duty and Income Tax etc. The

PVMA member Units are not only catering to the needs of Pakistans whole population,

but also supplying this dietary item of daily use to the people of neighboring countries. The

export of the Vegetable Ghee to Afghanistan and the Central Asian States via land route

through Torkhum and Chamman borders is a good source to earn precious foreign

exchange for our country. In addition of boosting trade relations with these countries thats

why the future of this industry is bright in Pakistan

PVMA is one of the largest contributors to the government exchequer. It is also among the

top Associations operating as Trade Organization. Moreover, it provides employment,

direct and indirect to more than 100,000 persons. PVMA member units annual production

capacity is around 3.0 million tons with the facility to produce both high quality Vanaspati

Ghee and Cooking Oils. The PVMA is an Association representing the Vanaspati

Manufacturing Sector on all Pakistan basis. Its units are spread in all the four provinces and

Federal Capital.

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Project Promoters:

The sponsors of the project are well educated and equipped with

variety of technical skills required for such type of businesses. so sponsors experience

would assist the firm in the smooth and profitable operations and to make the company

Successful. Sponsors detail is as under.

Name Age Address Qualification Experience

Ch.Jamshaid Latif 23 Bahawalpur Business

Graduate

4 Year

Abdullah Shaiq 23 Bahawalpur Business

Graduate

4 Year

Malik Madni 23 Bahawalpur Business

Graduate

4 Year

Kalsoom Akhtar 21 Bahawalpur Business

Graduate

4 Year

Sehrish Nisar 22 Bahawalpur Business

Graduate

4 Year

Benish Shahid 22 Bahawalpur Business

Graduate

4 Year

Syed Shoaib

Kazmi

23 Bahawalpur Business

Graduate

4 Year

Ch.Ghazanfar 23 Bahawalpur Business

Graduate

4 Year

Saif-u-Din Sial 23 Bahawalpur Business

Graduate

4 Year

Hafiz Riaz 23 Bahawalpur Business

Graduate

4 Year

Project Parameters

Raw material:

The basic raw material required for producing Oilum cooking oil and vegetable

ghee are Canola oil, Palm oil and Palm alien. These raw materials are not locally available,

they would be imported from Canada and Malaysia. There are some other input materials

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which are necessary for production but they are available in Pakistan. List of raw materials

and their prices are listed below.

Cooking Oil

Raw Material Quantity Price Rs(000)Canola Oil (Tons) 7,500 645,000

Caustic Soda (Kg) 45,000 1,125

Fuller Earth (Kg) 90,000 2,700

Common Salt (Kg) 11,250 34

Antioxidants (Kg) 1,500 240

Vegetable Ghee

Raw Material Quantity Price Rs(000)

Palm Olein Oil (Tons) 15,000 1,125,000

Caustic Soda (Kg) 33,750 844

Fuller Earth (Kg) 30,000 900

Common Salt (Kg) 22,500 68

Citric Acid (Kg) 3,000 360

Nickel Catalyst (Kg) 2,250 3,150

Project demand, Products and product mix:

The main products of the company are Oilum cooking oil and vegetable

ghee and by-products will be laundry soap and carbon dioxide gas. At 100% capacity,

annual production of Oilum cooking oil will be 15000 Tons, Oilum vegetable ghee 30000

Tons and Laundry soap 450 Tons.

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The process of production will be completed in thirty six hours. Factory needs

three shifts in thirty six hours. This hierarchy is same for three shifts. In hierarchy,

numbers of employees for three shifts are mentioned and they are divided into

three shifts.

Technical Analysis

Flow Chart:

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Decantation

Oil storage

Refining

COOKING OIL SOAPGHEE

Bleaching

Hydrogenation

Filtration

Post Refining

Filtration

Filtration

Deodorization

Post bleaching

Filtration and

Vitamin Add.

Storage

Chilling

Packing

Dispatch

Godown

Bleaching

De-Waxing

Filtration

Filtration

Cooling

Deodorization

Packing

Storage

Filtration and

Vitamin Add.

Dispatch

Godown

Dispatch

Godown

Filling in frames

Soapnification

Settling

Packing

Cutting into cakes

Soap Stock

Cooling

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Human Resource Planning:

Company is having highly skilled human resource personnel. We invest large amount on

our human resource. We estimate the amount of human resource which is required to fulfillthe demand of our procedure to forecast demand is highly structured and we also do

succession planning to fulfill key positions of company. We have well structured

assessment centers to select new employees or to promote existing employees. We use

transparency in our recruitment process by advertising jobs on newspapers and through net.

Training and Development:Training and development have direct link. Companies enhance their performance by

giving training to their employees. Company has well developed assessment centers to

recruit and select employees and for training of existing employees. Factory has almost

technical staff so, training is necessary for them. Company conducts pretest before training

and posttest after training to check performance of company.

Compensation:Company will compensate the employees as follows:

GM accounts Rs.50, 000

Marketing manager Rs.50, 000

GM Technical Rs.50, 000

Accountants Rs.10, 000

Cashier Rs.8000

Assistant cashier Rs.6000

Clerks Rs.8000

Forman Rs.10, 000

Electricians Rs.600

Supervisor Rs.10, 000

Store Incharge Rs.10, 000

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Chief chemist Rs.20, 000

Shift chemist Rs.15000

Welder Rs.8000

Fitter Rs.6000

Peon/sweepers Rs.6000

Helper/operator Rs.6000

For the selection of managers the following assessment center

will be executed

Days Candidate Activities Assessor Activities

1st

DayStructures interview ofrespective designation.

In-basket

Leaderless group discussionand group presentation.

(break)

Role-play(supervision)

(end of day)

Conduct interview, observe, take notes

Evaluate interviews

Observe, take notes

Evaluate participants groupinteractions.

Observe, take notes

Evaluate role-play behavior.

2nd

Day

Subject matter interview

(break)

Leaderless group discussion(conflict)

Conduct interview, observe, take notes

Evaluate interviews.

Observe, note notes

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Written report prepare for oralreport.

Group problem solving

(end of day)

Evaluate participants groupinteractions.

Observe, take notes

Evaluate oral repots.Evaluate written reports.

3rd

DayIntegrative discussionEvaluate candidates overallperformance.Develop employer report oncandidates.

Job description and specifications

Job Title Managing Director

JobSummary

A Managing Director maintains smooth and efficient function of abusiness. He directs the employees to achieve the companyobjectives. He must have strong leadership qualities and able toget excellent performance from his staff.

Job

Description

Review the annual report summarizing progress on short

and long range plans. He would be able to manage employee relation

He must ensure performance management andimprovement system.

Provide vision to a company.

JobSpecification

Minimum 4 years of experience of working with board ofdirectors.

Minimum 5 years experience of business, financial andpersonnel management.

Age 33-45 years.

He must posses problem solving ability.

He should have effective communication skills

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Job Title Marketing Manager

Report to General Manager

Jobsummary

Marketing manager plan and execute marketing strategies.Coordinate the activities of employees in order to achievemarketing objectives.

Jobdescription

He is responsible for all the marketing operations.

He must monitor marketing and promotion of a product.

He is responsible for conducting survey regardingcustomer needs.

Jobspecification

4-5 years of experience in similar positions.

Masters or equivalent degree in the related field.

Age 30-40 years.

He must posses effective communication skills.

He must have the ability to deal with environmentalfluctuations (social & political)

He must have the skills for market research, packaging ofa product.

Job Title Technical Manager.

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Report to General Manager.

Jobsummary

Develop and implement organizational policies, strategies andmanage the operation process.

Jobdescription

Manage all the operations that support organizationalmission.

Play an important role in the long-term planning and takeinitiatives towards operational excellence.

Able to administer payroll and employee benefits.

Plan and execute organizational policies and procedures.

Jobspecification

4-5 years of experience in similar positions. Masters in finance and business administration.

Age 30-40 years.

Must posses technical, communication and coordinationskills.

Job TileNo. of

employees

Job descriptions Job

Specifications

Accountant

02

He would be liable tomanager cash inflowsand outflows.

Degree in B.com

Able to managethe accounts.

Cashi

er

01

He would beresponsible to

manage cash.

Bachelorsdegree in therelated fieldrequired.

He must have thetechnical skills.

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Labattendant

03

He would beresponsible tomanage all apparatus

of laboratory

Intermediatedegree or anyequivalentdegree

He must havetechnical skills

Electricians

06

He would be able tohandle machines andequipments.

Diploma in therelated field.

He must have thetechnical skills.

Welder

01He is responsible tomaintain the facilities.

He must be

matriculate. He must have the

technical skills.

Clerks 14

He would be liable toperform all the clericalwork.

He must bematriculate.

Posses technicalskills.

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Assistantcashier

02 He would beresponsible to managecash and follow theinstructions of cashier.

Bachelorsdegree in therelated fieldrequired.

Forman 12 He would beresponsible to controlall technical activities

and report to GMtechnical.

Bachelorsdegree ordiploma intechnical field

He must hastechnical skills

StoreIncharge

01

He would be liable tocontrol and keep recordof all inventory in storerooms

Intermediatedegree withcomputerdiploma

He must hastechnical skills

Supervisor 02

He would beresponsible to buildgood communication inwork force.

Bachelors

degree orequivalentdegree.

Goodcommunicationskills

Boilerengineer

01He would beresponsible to controlall activities of boilersection.

Bachelorsdegree in theirrelated field

He must havetechnical skills

ChiefChemist

01

He would beresponsible to controlthe proportion ofchemicals in rawmaterial for achievingspecific result

Masters inchemistry orequivalentdegree in relatedfield and haveone yearexperience inrelated field

ShiftChemist

03He would beresponsible to controlall chemical reactionsin production process

Masters inchemistry orequivalentdegree.

Helpers

20He would beresponsible to followinstructions of Formanof their section

Intermediate orequivalentdegree

Operator 20He would be liable tosets or locate

He must hasmechanical


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Employment contract

1. The contract is offered for 1 year.

2. Permanent employees are entitled to allowances and benefits as prescribed

by the company. And contractees are entitled to the hardship allowance and

none of the other allowance.

3. Employer promise to promote, increase salary, provide bonus and otherfringe benefits based on employee performance.

4. During the employment with the company employee is not allowed to accept

the offer with any other organization.

5. Employee shall be terminated if he is find involve in the act having the effect

of injuring the reputation of business, continuous failure and neglect or refuse

to perform his duties.

6. Performance of employee will be reviewed annually.

7. Employee will have 30 days of annual leave and 24 sick leaves.

8. Employee is responsible for the payment of income tax.

9. Overtime will be worked only if it is agreed between the parties from time to

time.

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MARKETING PLAN

INTRODUCTION

Decent group of industries is basically a partnership organization which is a collection of

young individuals that are interested to give their best to the Bahawalpur market. This

organization is basically offering three types of products, Oilum cooking oil, Oilum

Banaspati and third product is laundry soap that will not be branded. Laundry soap will be

sold as semi finished good in the market.Initial focus of this organization is Bahawalpur and its surrounding market, and with the

passage of time organization will expand its distribution to other major cities of Pakistan.

The main focus of this organization is the health of their customers. Cooking oil is totally

fat free and is good for heart patients and diabetes patients, and also for those who wants

cholesterol free oil. Banaspati ghee is designed for those who want the taste of Desi ghee in

their food.

ENVIRONMENTAL ANALYSIS

External Environmental Analysis:

These factors are outside the organizations direct sphere of control and must be taken into

consideration when creating a marketing strategy. How these factors can influence the

delivery of marketing plan, are individually explained below...

POLITICAL

Political factors include general elections, government stability, political shifts etc. They

may not directly influence our business plan because Decent group of Industries is going to

operate in FMCG sector and this sector is not directly influenced by Political factors.

ECONOMIC

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These are the factors in the economic environment which could influence the organization

and/or delivery of the marketing plan e.g. interest rate changes, inflation, recession etc.

and they will directly influence the organization. Interest rate has a directly relationship

with our business plan.

SOCIAL

Possible factors in the overall social fabric of the country/world which could influence the

organization and/or delivery of the marketing plan e.g. pro-green bias, growing concern

about health, reduced childbirth etc. These factors will directly influence the delivery of

business plan. We are going to deal with such social factors in an efficient way.

TECHNOLOGICAL

Possible factors technological changes which could influence the organization and/or

delivery of the marketing plan e.g. new inventions, increased use of IT etc. technological

factors influence the business plan as well as the organization but to some extent.

Technological inventions in oil industry sector are not aggressive and we are already going

to install a new automated plant and we are also going to do business through website. The

whole seller or retailer of our organization will have the opportunity to place the order

online by using our website.

LEGAL

Possible legal or regulatory factors/changes which could influence the organization and/or

delivery of the marketing plan e.g. new laws, regulatory demands etc. these factors

directly influence the marketing plan and to the organization all over.

ENVIRONMENTAL

Possible environmental issues are water shortages, weather patterns, Load shedding of

electricity and Sui gas etc. Decent Group of Industries is going to deal in cooking oil and

ghee sector and these environmental factors have directly effect on our business plan. We

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are going to install our own plant for electricity problems. Other factors such as weather

patterns and water shortage have no direct relationship with our plan.

Internal Environmental Analysis:

Internal factors are those factors which are in the control of organization. Internal factors

affect the organization internally. These factors include organization culture, Employees

behavior, labor unions etc. in Bahawalpur region labor are cheap and the concept of labor

unions is not so much.

Resources (Capital)

As we know that capital is the basic source by which a project actually comes to existence.

There are two basic sources of capital that are used in business .Outsourcing and in

sourcing.

1. Outsourcing

It means that we are taking capital from outside. It may be short term or long term. It can

be repaid in at least 3 months or it can be 10 years (20 years in case of HPFC).

We will take 40% of the cost of the project from inside and we will take 60% of the cost of

project from outside that will be our long term debt.

Resources (People)

Labor required for this project will be of three types.

1. Skilled

2. Semiskilled

3. Unskilled

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PRODUCT DEVELOPMENT

Decent group of Industries is offering following products.

1. Oilum (Cooking Oil)

2. Oilum (Banaspati Ghee)

3. Laundry Soap (By Product)

To develop the above mentioned products we will mainly focus on

Health; the product which we are offering is the second most needed food product. So

everyone uses it because it is the basic necessity of human beings. We are focusing on

health while developing our products. As now a day diseases like diabetes, heart problems

are very common.

Every 10th person in Pakistan is heart patient. Main reason behind this is that cooking oil

they are using is not completely cholesterol free thats why they are suffering from such

type of diseases. The product Oilum that we are offering is totally developed while

considering all the health factors. Oilum is for every person who is health conscious. And

Banaspati ghee that we are offering is also developed while considering fat free and great

taste to make delicious dishes.

TRAINING

The labor we are hiring is of three types.

Skilled labor is already specialized in their respective fields and having much knowledge

because of their past experience, but there is always a need for improvement. so we will

give training to our skilled labor for at least three to 4 weeks.

Semiskilled labor which is not as much expert in their respective fields but they are in the

process of continuously improving their skills. We will give them six to eight week

training.

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Unskilled labor is totally unaware of what to do. So we will pass them through complete

training process. It can be of three to four months.

CUSTOMER SEGMENTATIONAND MARKET ANALYSISVariables Typical Breakdowns

Geographic

Region Country-wise, province-wise, city-wise,etc.

Demographic

Age Under 25, 25 - 45, Over 45

Gender Male, Female

Income A - F Households with Class A householdshaving the highest income and Class F

having the lowest.

Education Uneducated, Primary School,Matriculation, Intermediate, Bachelors,

Masters, PhD.

Psychographic

Social Class A - F Households - A being Upper classand F being the lower class.

Behavioral

Purchase Occasion Regular occasion, special occasion

Benefits Sought Quality, service, economy

User Status Nonuser, ex-user, potential user, regularuser

Loyalty Status None, medium, strong, absolute

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TARGETINGAND POISONING STRATEGY

Variable Typical Breakdowns

GeographicRegion Oilum cooking oil is a nation wide brand.

Although our initial focus is Bahawalpur

market and its surrounding areas.

Oilum Banaspati is a nation wide brand,

but our initial focus will be on Cooking oil

then we will come to banaspati brand to

go on nationwide.

DemographicAge 25 - 45

Gender Traditional female housewifeIncome Households A and B*

Education At least Matriculation

PsychographicSocial Class Households A and B*

Lifestyle and Personality Oilum Cooking oil is mainly targeted athousewives who are more or less in the 25

- 45 age groups. This woman is traditional

but educated (at least completed hermatric) and loves taking care of her

family. She is caring and nurturing and

wants the best for her family. She is

quality conscious and health conscious

and will be prepared to pay a premium

price for good quality products. She goes

for cooking expertise, good taste and high

quality.

Oilum Banaspati is targeted at the

housewife who though wants the same

taste as Desi ghee wants to provide her

family with a healthier alternative -

though she is not totally obsessed with

health considerations.

* The Class A households are the highest income groups and Class B households are the

middle-income groups. These are the household who are willing to pay a premium price.

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COMPETITOR ANALYSIS

As we know that there is an intense competition in FMCG sector. Decent Group of

Industries is going to start its operations initially at local level then on national level. So

our competitors at national level will be Dalda, Sufi, Habib and Sultan. They are also

targeting elite class and our focus will also be elite class.

COMPETITOR 1: DALDA

Strengths:

1. They are market leaders.

2. Quality

3. Brand image

Weaknesses:

1. High price

2. Not having Olive oil in ingredients

COMPETITOR 2: HABIB

Strengths:

1. Brand image

2. Quality

3. Market know how

Weaknesses:

1. High price

COMPETITOR 3: SUFI

Strengths:

1. Market know how

2. Brand image

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Weaknesses:

1. Does not want to go at national level

2. High price

SWOT ANALYSIS

SWOT analysis is the analysis of strengths, weaknesses, opportunities, and threats of

organization as compared to competitors.

SWOT analysis of the Decent group of Industries is as under..

Strengths:

1. Plants location in Bahawalpur, which is an agricultural area so raw material

access will be easy.

2. Plants site at Karachi road will results in less distribution cost.

3. In partnership partners education considered a major strength so this

organization will have this strength.

4. Technical innovation as compared to competitors.

Weaknesses:

1. Dynamic and flexible changes in our market sector.

2. Less per unit profit.

3. Low local market know how because of initial phase of business.

Opportunities:

1. Market has potential of growth as people are health conscious, so providing

them a fat free cooking oil is an opportunity to enter in market.

2. If our plan will result in success by using same model we can extend the

company by starting a other plant in same or different area.

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Threats:

1. Strong national level competitive brands.

2. Financial threat may be we have to face.

3. Also local level strong competitive brands.

4. Threat of new entrances because of open market.

MARKETING OBJECTIVES

1. Provide good quality and taste to the target market.

2. Capture a large market share of Bahawalpur market.

3. Maximization of profit.

4. Our product is measurable in terms of sales and profits.

5. We want to achieve a 5% growth rate annually.

6. We have settled our goals with respect to time frame.

MARKETING STRATEGY

STRATEGIC OVERVIEW

We are using differentiate strategy, because we are differentiating our product in

such a way that we are offering such a cooking oil and Banaspati which is very health

friendly. The customers who will use our products will get the protection from diseases like

diabetes, heart attack, because these diseases are caused by increase in cholesterol level in

human body. But our product is cholesterol free and having great taste and is environment

friendly.

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Primary customers their key influencers, decision maker, and

economic buyer

Initiator:

Housewife is always an initiator in the whole family, because housewives always see the

while familys health.

Influencer:

Influencers are those factors or people who influence the buying process. They can be any

people or any events.

1. Family is a great influencer in buying process for cooking oil and Banaspati ghee

2. Traditions like any event like parties, birthdays etc.

3. Advertisements and commercials through different channels.

4. A friend affects the buying process.

5. Neighbors are also influencers in buying process.

Decider:

1. Housewife is main decider in a family because they have all the responsibility for

the cooking, and they do mostly all the shopping.

2. Husband decides the brand for whole family health.

3. Many families send the servants for shopping so what brand they decide its on their

own choice.

primary users

Primary users are housewives because they have all the responsibilities of kitchen.

Secondary users will be all the persons who use our product in the family.

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POSITIONING, VALUE PROPOSITION

Main competitors of Oilum cooking oil are Dalda, Sufi, Habib. They are charging high

prices for their products, they are also cholesterol free brands but in their products features

olive oil is not included. Olive oil is very good for heath and it provides taste. This

ingredient is for the fats, because it causes in the reduction of fats. We are going to provide

a high quality product in comparatively low price.

PRODUCT STRATEGY

Product Portfolio:

Decent group of industries is going to offer 3 types of product.

1. Oilum Cooking oil

2. Oilum Banaspati

3. laundry soap

Product / Service Analysis

The description of each product offered by our organization is given below.

Description of Product 1-

Oilum Cooking Oil

Product Concept and History

Oilum Cooking Oil is for the whole family. We are going to offer a fat free product and the

ingredients that we have included in it will protect the consumers from different diseases,

like diabetes, and different heart diseases. The product also have a great differentiated taste,

the people who want taste and also want the protection from diseases mentioned above, our

product will satisfy their needs in efficient way.

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Key Messages & Main Benefits:

Oilum cooking oil is a fat free product with delicious taste. Olive oil that we have included

in its ingredients provides a delicious taste and this ingredient do not cause the diseases.

Features, Functions, & Benefits:

Include only the top 5 features from your MRD.

Features BenefitsPure canola oil Low in saturated fats, and high in

monusaturated fats

Olive oil protection against heart diseaseby

controlling LDL ("bad") cholesterol

levels

Corn oil Corn oil is associated with reduced

risk of chronic diseases.

Vitamin A &D Needed for strong healthy bones

Vitamin E vitamin E contributes to a healthy

circulatory system and aids in proper

blood clotting and improves wound

healing.


Oilum Banaspati Ghee


Oilum Banaspati Ghee is for those people who want delicious taste and healthy ingredients

in their food. Our product will be having fewer fats. And the main thing will be a delicious

taste in their food.

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Features, Functions, & Benefits:

Features Benefits

Vegetable oils vegetable oils are more healthier than

fats derived from animals

Vitamin A &D Needed for strong healthy bones

Vitamin E vitamin E contributes to a healthy

circulatory system and aids in proper

blood clotting and improves wound

healing.


Laundry soap


Laundry soap will not be branded by our organization. We will sell it as semi finished non

branded product.

Estimated annual Sales:

Estimated annual sales for the first year are calculated as2110562 in pak rupees. Whereas

in second year estimation is to earn revenue of Rs.2643757, and for the 3 rd year of

operations the estimated revenue is Rs.3356702. this estimated revenue is calculated for

our three products, cooking oil, ghee, and laundry soap.

Geographical Scope:All of our products and services are to provide best quality, taste and services to our

customers. Our products have a broad geographical scope. We will provide best quality and

fat free product with delicious taste to our customer. The ingredients of our cooking oil

focus on the health and decrease in fats in human body. Besides many national and local

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companies are producing these ingredients but they have high prices, and people do not

trust more on local products.

National brands have high prices and a middle class family can not afford high prices. so

we have a great advantage to focus them because our production plant will be in

Bahawalpur and the raw material will be easily available here. So our brands will not have

so much high prices comparatively of national or other local brands, because our cost for

manufacturing is low.

Consumer Buying Process

1. We will realize prospects for our product by focusing on health.

2. Then slowly customers start to collect information from internal and external

sources available in the T.V channels and newspapers. And he or she will collect

information from our friends and family about our product.

Substitute Products/Services

Bahawalpur is not so much advanced city and here many village people still use Desi ghee

in their cooking, and many people use animal fats too. So they are substitute products for

our both brands banaspati and cooking oil.

Potential New Market Entrants

FMCG industry is always opened for new entrants. At local level our main competitor and

new market entrance is Lives cooking oil by Shameem Group of industries. They are

also installing their production plant in Bahawalpur and their target market is Bahawalpur.

Brand Strategy

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Brand name: Oilum Cooking oil

Oilum Banaspati

Logo and slogan:

PRICING

Product Retail PriceOilum Cooking Oil

1 liter pack Rs.105/liter

5 liter can Rs.510

5 liter tin Rs.515

Oilum Banaspati ghee

Half KG. pack Rs50

1 KG. pack Rs.955 KG. Tin Pack Rs.465

15 KG tin pack Rs.1400

INTEGRATED MARKETING COMMUNICATION PLAN

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Advertising Activity

It is a paid communication tool in order to attract massive audience.

Objective:-

Advertisement will be used so those people all over Bahawalpur become aware our brands.

It is the most effective communication tool because it addresses the mass audience.

Secondly advertisements are widely seen by people whether they are on broadcast media or

on print media.

Media Relations Activity

Media Relation activity is for both public relation and publicity.

Objective:-

Media relation activity will be used when we actually launch our products, to attract our

customers. It includes local press, Cable, F.M Bahawalpur.

Online Activity

Online activity will be used only for B2B activities. We will give a plat form for our

suppliers to be connected with our organization and make the ordering process efficient

and easy. Other else for our whole sellers, to give orders on our website, they all will be

registered on our website and they will perform their functions with our organization by an

account given to them by our organization.

Sponsorship Activity

Sponsorship activity will also be conducted by our organization; our main focus is literate

and knowledgeable people. They are the youth f Bahawalpur so we will provide

sponsorship activities to the major events of the Islamia University of Bahawalpur and

other some big colleges and schools.

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Retail Support and Other Collateral

Leaflets, letterheads, business cards and brochures will also be produced for public relation

and publicity activities.

DISTRIBUTION STRATEGY

Organization Decent Group of industrys ultimate goal is to provide best quality products

and delicious taste to its customers. So its main focus is to provide best quality products

with affordable prices to its customers.

Risk Assessment:

We are going to start our businesses from Bahawalpur and major population of Bahawalpur

has no attitude for risk taking or to change their initial behavior. What they are buying they

continuously buy that, they have not so much risk taking or switching behavior, Though

young generation has a changing attitude. This attitude may generate a great impact on our

business.

Plan B:

If our initial plan fails then we have a plan B. we will exclude our ghee brand and our main

focus will be to get success for our cooking oil brand, and we will start branding the

laundry soap because this has low cost and we can generate more revenues from this.

Vision:

Give a Healthy and active life to our customers without fear of being fat.

Legal:

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1) Privacy: personal information will be collected about the members, employers and

employees. And the private information will be kept private.

2). Health and safety:our organization main focus is the health of our customers. So we

will be liable and will work on the cleanliness and expiration, So that no expired pack

should be delivered to our customers that may cause any disease.

executive summary new

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