Juice Company
Address:
Business Report
Page 2
Index
S#
Contents
Pg#
1)
About Entrepreneurs of Company
3
2)
Nature of business and statement of financing needs
4
3)
Confidentiality Agreement
5
4)
Executive Summary
6
5)
Future outlook and trends
7
6)
Competitive analysis
8-10
7)
Sugarcane geographic analysis
11
8)
Product preview
12
9)
Official Equipment
13-14
10)
Size and form of business
15-16
11)
Marketing Plan
17-19
12)
Financial Plan
20
13)
Sales Forecast
21
14)
Revenue Forecast
22
15)
Expense Forecast
23
16)
Profit Margin
24
17)
Break even analysis
25
18)
Conclusion
26
Business Report
Page 3
About Entrepreneurs of Company
Name and Address of entrepreneurs:
1. Kashan Ahmed Lodhi
A-920 Block 12 Gulberg, karachi
2. Muhammad Bilal
House no. 124, Glistan -e- Jouhar, Karachi
3. Muhammad Saad
House no. 54, North Nazimabad Block H, Karachi
4. Sheikh Abdullah
House no. 287, Defence Phase II, Karachi
5. Usama Ansari
House no. 145, Defence Phase II, Karachi
Natural Taste Juice Company
Plot no. 256, sector 45-C, korangi industrial area www.NaturalTJ.com
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Page 4
Nature of Business
Sugarcane juice industry is a business idea that deals product. Our product is sugarcane juice in tetra packs or pet bottles. Sugarcane juice is widely used in summer season because of its taste and low costs. Now in many countries it’s produced on chemical basis and there sales are quite high especially in Middle East countries. This juice is widely used in hot weather conditions.
Statement of Financing Needs
The total project investment is Rs. 50, 00,000.
Financial Summary.
A financial model was used to identify relevant investment needs and expenditures in conjunction with sales and expense projections to generate pro-forma financial statements.
Land on Rent.
We will take 400 yards land on rent for 3 years of agreement and agreement will be renewed. Land advanced is Rs 400000 and monthly Rs 30000. Construction cost is Rs 500000
.
Equipment.
This sugar cane machine is advance version of manual, this is operated by either electric motor or diesel engine to rotate the gear wheel, which reduces the hard effort of
rotating, and Using Diesel engine is the most popularly used in all the places, because of its low initial investment on engine.
Recent years this engine has advanced its level in hygiene and healthier aspects, people are concentrating more on flavors, cleanliness, but as this goes high, the initial investment also goes up. An automatic gear operated machine costs Rs.100000. we require 4 Machine.
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Confidentiality Agreement
Natural Taste Juice Company Pledge of Confidentiality
This confidentiality agreement is entered into between Sheikh Abdullah, Usama Ansari,
Muhammad Saad, Bilal, and Kashan Ahmed lodhi business located at Korangi industrial area.
The parties agree to protect each other's Confidential Information disclosed before or after the execution of this
Agreement on the following terms
1) Each party shall use its reasonable best efforts to keep the other's Confidential Information secret.
2) Confidential Information as it employs with respect to its own Confidential Information of like importance.
3) Neither party has any obligation with respect to any Confidential Information which (a) that party independently develops without reference to the Confidential Information; (b) is or becomes publicly known without a breach of this Agreement by either party or is known prior to the date hereof; (c) is disclosed to it by a third person who is not required to maintain its confidentiality; (d) is approved for release by the other party in writing. 4) Neither party may print or copy, in whole or in part, any documents or magnetic media containing any Confidential Information without the prior written consent of the other party other than copies for employees or consultants who are working on the matter and have a need to know.
5) Neither party may use the other's Confidential Information for any purpose but the Business Purpose stated above.
6) Each party agrees that in the event of a breach or threatened breach by either party, including its agents, directors, or employees, of the provisions of this Agreement, the non-breaching party may have no adequate remedy in money damages and, accordingly, shall be entitled to an injunction against such breach, in addition to any other legal or equitable remedies available to it.
7) This Agreement is governed by the laws of Connecticut without regard to its rules on conflicts of law, and both parties consent to the venue and jurisdiction of its courts.
Neither party may assign its rights or obligations under this Agreement. No modification of this Agreement shall be effective unless in writing and signed by all parties. No waiver of
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Page 6 any provision of this Agreement shall be effective unless signed by the waiving party. This Agreement is the entire agreement between the parties on nondisclosure of confidential information.
Name
Signature
Date
kashan Ahmed Lodhi Muhammad Bilal Muhammad Saad Sheikh Abdullah Usama Ansari
Executive Summary:
Sugarcane Juice is a Marketing idea that we are coming up with. Fresh sugarcane juice obtained from mature cane is sweet and tasty. It is not only a thirst quenching drink but also nutritious due to the presence of several minerals like phosphorus, calcium, magnesium, vitamins, amino acids etc., and has medicinal properties also particularly for the cure of jaundice. Cane juice mixed with the extracts of lemon, mint etc., adds to the taste, helps in better digestion and improved bowel movement .Our product is sugarcane juice in tetra pack packaging. Sugarcane juice is widely used in summer season because it is good in taste and low in cost. But problem with this is that it can’t be preserved for long time. In Pakistan no company has launched sugar cane juice till now in tetra pack. The methodology used in Pakistan is quite old and so many people don’t go for this sector because the risk of the low shelf life. So we have decided to launch a sugar cane juice & we would be using sodium benzoate as a preservative which would increase the
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Page 7 shelf life of our product without harming its colour and taste. Because sugar cane juice is naturally sweet, so it can be sold with a little additional processing too. Fresh sugar cane juice has no preservatives, however its tendency to turn black from oxidation soon after pressing is very high, so to secure from oxidation we should pack in tetra pack packaging.
The sugar cane juice has several health benefits and medicinal properties most of which remains unknown to the masses. It has direct effect on digestive system and it contains nutrients which are healthful for life
It strengthens the stomach, kidneys, heart, eyes, and brain and sex organs. The juice sucked from the sugarcane can prove highly valuable in case of weak teeth due to lack of proper exercise resulting from excessive use of soft foods. It gives a form of exercise to the teeth and makes them strong. It also keeps the teeth clean and increases their life.
The target market would include almost all the adults, young & health conscience people & we would initiate our project initially in Karachi.
Future Outlook and Trend:
People prefer juices in order to remain fresh and fit, some like to serve their guests with juices as people are now more towards hygiene and consciousness and juice provide more nutrition’s and a good taste. A new research proves that by 2014 every person will consume 95.5 litres juice every year and research suggests that juice market growth and sales is always on increasing trend, customers are more towards nutritious drinks especially during summer.
Competition Overview:
Indirect Competitors
The indirect competitors of our Product are:
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Page 8
Coca cola (pulpy orange)
Shezan (Mango, Punch, Orange, Apple.)
But we are not competing our product with them because they are the competitors of the Juice market and they are only providing the different flavor juices but not the sugarcane juice.
Indirect Competitive analysis:
As the Sugarcane juice is the symbol of the refreshment and nutrition and it is also a substitute for the other soft drinks. So we have compared it with other soft drinks. So in the soft drink market we have the competitors like
Coca cola Pepsi
Other instant drinks
1. STRENGTHS:
INCREASED HEALTH CONSCIOUSNESS:
Fresh sugarcane juice is obtained from mature cane and is sugary and tasty. It is not only a thirst quenching drink but also nutritious due to the presence of several minerals like phosphorus, calcium, magnesium, vitamins, amino acids etc., and has therapeutic and medicinal properties. It is completely pasteurized i.e. we place it over shelves after proper sanitization of sugarcane juice with six months guarantee.
FIRST MOVERS’ ADVANTAGE:
They are the first one to introduce sugarcane juice in tetra pack, so they are having an advantage over market as at initiation we will face no other direct competitors, and up to the time any competitor enters, they will increase the brand loyalty.
PRODUCT INNOVATION:
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NUTRITIOUS DRINK WITH SEVERAL HEALTH BENEFITS:
Sugarcane juice is a wholesome in many aspects:
Sugarcane juice is a great preventive and healing source for sore throat, cold and flu. It has a low glycemic index which keeps the body healthy.
This is one sweet drink even the diabetic can enjoy without fear. It is because it has no simple sugars.
Due to its alkaline nature, it helps to fight cancer. Studies indicate that it has positive activity against prostate and breast cancer cells.
It hydrates the body quickly when exposed to prolong heat and physical activity. They are excellent substitutes for aerated drinks and cola.
It refreshes and energizes the body instantly as it is rich in carbohydrates.
It helps in better digestion and improved bowel movement. It can hasten recovery from jaundice.
2. WEAKNESSES:
LACK OF BRAND AWARENESS:
Asthey are pioneer in sugarcane juice industry, there is lack of familiarity, so in order to overcome this weakness we will initially invest heavily on advertisements and promotion.
They are new to business world, so initially they might have difficulty to understand the ins and outs of today’s aggressive market and for that they require a lot of research and exposure.
LIMITED SHELF LIFE:
Sugarcane juice actually is served fresh, people perceive it to have fresh otherwise the colour and odour will be affected due to oxidation, but they are adding sodium benzoate, a preservative in it which would increase its shelf life over to six months.
3.
OPPORTUNITIES:
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Page 10 As Asia grabbed a huge proportion of sugarcane market, India and Pakistan are one of the main producers of sugarcane, so there will be an ease of availability by contracting with local manufacturers.
CHANGING SOCIAL TRENDS:
Fresh cane will set a new trend i.e. a trend of health consciousness and purification and to remain fresh and healthy forever.
CAN BE MIXED WITH SEVERAL OTHER FLAVORS TOO:
Soon, after market penetration, we will focus to introduce “Fresh Sugar Cane Juice” in other flavours as well, which include: mint, lemon, etc.
4. THREATS:
POLITICAL SITUATION (GOVERNMENTAL UNCERTAINTY):
They will face problem if government employ extra taxes on us which in future will force us to raise the price of their product. We can have adverse impact, if cost of labour doing work increase.
LACK OF RESOURCES (SHORTAGE OF ENERGY):
One of the current problem which Pakistan is facing, this can adversely impact us. Inflation rate is another threat which we can face.
Market Segmentation
We have more clear and specific information about the market and we are also aware of the customer demand and choices. Based on our Research and Development department we are strictly determined to serve our customer needs and wants with a totally new taste of juice like “Natural taste Sugarcane Juice”. We are going to launch our new product for five groups of people. They are shown graphically below:
Geographic:
Our immediate geographic market will be Karachi city with a population of around 20 million.
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Our total targeted area population is estimated at 20 million.
Demographic:
Male & Female
Generation – kid, young, matured people, old people and jaundice patients. We know the following regarding the profile of the typical resident of Karachi City
23% children
18% mature 37% young and
20% Jaundice Patients
2% of the old people.
Psychographic:
Social class: Middle Class, Upper Middle Class, and Upper Class.
Life style: Achiever. Behavioral:
Benefits : Quality
User status: Potential user, first-time user, and regular user.
Population
(Millions)
Human being
criteria
Target In
Percentage
Kids
23%
20
Young
18%
Matures
37%
Jaundice patient
20%
Old people
2%
Kids 23% Young 37% Matured 18% Jaundice patients 20% old people 2%Business Report
Page 12
Product Review:
Company Name:
Natural taste Juice Company
Product Name:
Sugarcane juice
Introduction:
Our product is sugarcane juice in tetra pack packaging. Sugarcane juice is widely used in summer season because it is good in taste and low in cost. In Pakistan no company has launched sugar cane juice till now in tetra pack. So we have decided to launch a sugar cane juice because sugar cane juice is naturally sweet.
Consumer
Wholeselles & Retailor
Distributer
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Official Equipment:
Item(s)
Quantity
Total Cost
Office Chairs 10 15000
Desktop Computer 3 150000
Laptop 2 50000
Office Supplies Mix item cartons 10000
Office Telephone 5 10000
Computer Printers 2 24000
Photocopier Machines 1 60000
Office Table 5 20000
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Brief of Personnel’s:
We are currently operating six departments. In future we will expand company department and employees as well.
Skilled Labour
Department(s)
No. of Employee
Total Employee
Accounting & Finance 2 (Entrepreneur)
Marketing 1 + 1 (Entrepreneur)
Sales 2
Purchase 2
Operational 2
Human Resource 1 (Entrepreneur)
Office Reception 2
Total Appointment
Unskilled LabourWorker(s) Type
No. of Workers(s)
Labour on Plant 15
Peon 2
Drivers & Helper 5
Gate Keeper 2
Sweeper 2
Total Appointment
Machinery and Factory (Production) Equipment:
Machines
No. of Unit
Total Cost
Produce Juice 1 70000
Brand name stamp machine 1 300000
Juice Packaging machine 1 150000
Total Cost
13
26
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Size and form of Business
Office equipment
SPACE
Small Level - 3 x 3 sqft space, it can be either a table also Medium Level - 5 x 5 sqft space
Max Level - 10 x 10 sqft space
Manufacturing Process:
The process through which the sugar cane stalk would go through is as follows:
1. Peeling. 2. Crushing. 3. Filtration. 4. Pasteurization. 5. Packaging. 1-PEELING:
In this process the hard skin of the stalk that is not required for the juice is removed with the help of a machine.
2-CRUSHING:
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Page 16 3-FILTERAING:
After the juice is produced filtering of the juice is done to remove the un-needed particles that may have left behind in the juice from crushing.
4-PASTEUTIZATION:
In this step the juice is kept under a certain temperature to further remove the impurities from it. This step doesn’t harm the taste, colour and freshness of the juice.
5-PACKAGING:
The final step is packaging of the juice in a tetra pack, which is again done with the help of a machine. The tetra pack has the name of the juice.
List of Raw Material:
Sugar cane Water
Names and Addresses of suppliers:
Shaukat , interior sindh Ameen , interior sindh
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Marketing Plan:
1. Product strategy:
Core benefit
Core benefit means the services and benefits the customer is really buying. The customer fulfils its need of thrust and refreshment by buying our
Basic product
It’s mean what specifically the actual product is. Our actual product is juice
Augmented product
Products that include deign, features and packaging that go beyond consumer expectations and differentiate the product from competitors. The juice taste and flavour is according to the customer expectations because we provide 100% pure juice. They will have no compromise with quality Following things include in the sale of product,
Design
The design of sugarcane juice that it will be in attractive and stylish tetra pack in following size: •250ml
Features
The features of the product are, •Use full for healthy life
•Good in taste •Help to digest food
Packaging
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2. Pricing strategy:
The price of the product can also influence the buying behaviour of the consumers becauseIn Pakistan there is different level of classes based on the income difference so price isThe one of the important factor, some of the consumer can afford the price and othersCan’t, so must set the price of the product that is afforded by all the social classes of the region. So they use penetration pricing strategy.
Price Structure
(Consumer price) 250ml- Rs.30
3. Channel of Distribution:
The place of the distribution and availability of the product also influence the buying behaviour because if the product is in reach of the consumer he will prefer it and if it is hard to find the product in the market he will never buy that product. So they provided our product to all the all the distributors and they will provided it to famous retailers of Islamabad, Lahore and Karachi. Because of this the product will be available at more shops and the sales will increase.
ADVERTISING & PROMOTION
Our total advertisement and promotional budget limits to 1 crore, at the very start, they will act as an aggressive promoter, i.e. they will invest heavily on promotion in order to create brand awareness. Secondly, the taste of the product is new so they will develop certain market strategies to attract customers towards new taste.
PROMOTION
The promotion of the product i.e. the advertisement, sales promotion and other promotional tools can change the buying behaviour because some of the individuals highly influenced by the advertisement of the product. They have decided to use integrated marketing communication in which there will be blend of different marketing promotional tools that will convey clear and consistent message of our product to the customers. These Promotional tools are given below:
Business Report
Page 19 • BILLBOARDS:
Billboards will be placed at busy thoroughfares in big cities. Billboards will be the most permanent and long lasting form of advertisement. The total Billboards they will place are in number.
• SALES PERSON:
Around 200 salespeople will be appointed which will introduce the product to customers in all the three cities.
• DAY CELEBRATION:
They will start the very first day with Day Celebration in order to introduce the brand in an effective manner, plus they can also have an idea about people’s interest towards sugarcane juice.
• POSTERS:
They will put 75 posters in different places in order to grab a large portion of the three cities. • TVC:
Tele commercials will be aired on sports channels and news channels as the viewer ship of these channels is highly common among the targeted market.
• INTERNET ADS:
Lastly, they will use internet ads to market the product.
Organizational Plan: Form of ownership:
Sheikh Abdullah, Usama Ansari, Muhammad Saad, Kashan Ahmed lodhi, Bilal Ahmed are the equal partner of the organisation and all has all rights of company and all has the equal share of the company.
Business Report Page 20
Financial Plan:
Income Statement
Description 2013 2014 2015 2016 2015 Total Revenue (20000*22)+ (8000*38)+ (10000*68)= 1424000 (310000*22)+ (150000*38)+ (200000*68)= 26120000 (460000*22)+ (250000*38)+ (310000*68)= 4070000 (750000*22)+ (500000*38)+ (600000*68)= 7630000 (850000*22)+ (650000*38)+ (750000*68)= 94400000 Variable Cost ( Raw-materials, marketing, advertising, Promotion) (20000*16)+ (80000*30)+ (10000*56)= 112000 (310000*16)+ (150000*30)+ (200000*56)= 20660000 (460000*16)+ (250000*30)+ (310000*56)= 3222000 (750000*16)+ (500000*30)+ (600000*56)= 60600000 (850000*16)+ (650000*30)+ (750000*56)= 75100000 Fixed Cost ( Land, Factory, Office, Storage) 2000000 2000000 200000 2000000 2000000 Total Cost 162000 2566000 3722000 65600000 80100000 Profit Margin -196000 46000 348000 10700000 14300000Business Report
Page 21
Sales Forecast:
The first three months of first year will be used to set up the processing and manufacturing plant for the production of V6 vegetables juice. There will not be sales activity until the processing plant has established. From month four there will be a steady increase in sales.
Fig: Sales Forecast
0 500000 1000000 1500000 2000000 2500000 2013 2014 2015 2016 2017
total Sale
total SaleBusiness Report
Page 22
Revenue Forecast:
As in the third month our product sales started and its will be increasing day by day our revenue also will be increased potentially. This growing revenue is shown by the following graph.
Fig: Revenue Forecast
0 10000000 20000000 30000000 40000000 50000000 60000000 70000000 80000000 90000000 100000000 2013 2014 2015 2016 2017
total revenue
total revenueBusiness Report
Page 23
Expense Forecast:
Marketing expenses are budgeted to analysis the year-wise expense of Horlborn Consumers Ltd. The projected expenses for five years are shown by the following graph.
Fig: Expense forecast
0 10000000 20000000 30000000 40000000 50000000 60000000 70000000 80000000 90000000 2013 2014 2015 2016 2017 Fixed Cost Variable Cost
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Profit Margin:
The progresses of Horlborn Consumers Ltd are measured by analysis the yearly profit. These are shown by the following graph.
Fig: Profit Margin
-2000000 0 2000000 4000000 6000000 8000000 10000000 12000000 14000000 16000000 2013 2014 2015 2016 2017
Profit Margin
2013 2014 2015 2016 2017Business Report
Page 25
Break even Analysis:
The Break-even Analysis indicates 25890000tk will be needed in yearly revenue to reach the breakeven point. -20000000 0 20000000 40000000 60000000 80000000 100000000 2013 2014 2015 2016 2017 Fixed Cost Profit Total Expense Total Revenue
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CONCLUSION
We promise the quality of its product, which we will also deliver through this product. We have first mover advantage because no other company is offering similar product in the market. We have to aware our customer about the product and have to tell them the benefit of using our hygienic product that comes in tetra pack. Though the initial cost would be high because you have to set machinery buy land and have to invest a lot in the advertising of product, but once you create the positive image in the mind of your customers they will automatically demand the product.
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Mohammad Saad North Nazimabad Block H, House # 54.
Email: [email protected] Cell no: 0343-2958315
An entrepreneurial, detail oriented and highly motivated individual with diverse experience. Offer strong analytical and problem solving skill. Excellent communicator adaptive learner and trustworthy team player
Work Experience
Finance Manager Jan 2013 – October 2013 Gul Ahmed co.ltd 1 Year experience, working efficiently and effectively.
Assistant Finance Consultation April 2012 – dec 2012 PTCL ltd. Assist the manager regarding all the transaction.
Master In Business Administration (MBA) University of Karachi GPA 3.0
Master in Commerce (M.com) University of Karachi GPA 3.0
Bachelor of commerce (B.com) University of Karachi (2011) 1st Division
Father Name Sikander Azam D.O.B 26 June 1985 Religion Islam Nationality Pakistani Objective Education Personal Information Work Experience
Business Report
Page 28
Kashan Ahmed Lodhi A-920 Block 12 Gulberg, karachi
Email: [email protected] Cell no: 0342-2065099
An entrepreneurial, detail oriented and highly motivated individual with diverse experience. Offer strong analytical and problem solving skill. Excellent communicator adaptive learner and trustworthy team player.
Work Expe.r rience
Finance Amnager Jan2012-june 2013
Samsung Co.ltd
2 Year experience , working efficiently and effectively. Manage H.R responsibilities
Master In Business Administration (MBA) University of Karachi GPA 3.2
Master in Commerce (M.com) University of Karachi GPA 3.0
Bachelor of commerce (B.com) University of Karachi (2011) 1st Division
Father Name Ahmed Hussain Lodhi D.O.B 1jan, 1985 Religion Islam Nationality Pakistani Objective Education Work Experience Personal Information
Business Report
Page 29
Bilal Ahmed House no. 124, Glistan -e- Jouhar, Karachi
Email: [email protected] Cell no: 0336-8314584
An entrepreneurial, detail oriented and highly motivated individual with diverse experience. Offer strong analytical and problem solving skill. Excellent communicator adaptive learner and trustworthy team player
Work Expe.r rience
Human Resource Jan2012-Jan 2013
Samsung Co.ltd
2 Year experience, working efficiently and effectively. Manage H.R responsibilities
Master In Public Administration (MPA) University of Karachi (2014) GPA 3.3
Master in HR University of Karachi (2014)
GPA 3.3
Bachelor of commerce (B.com) University of Karachi (2011) 1st Division
Father Name Ahmed Ansari D.O.B 30june, 1984 Religion Islam Nationality Pakistani Objective Education Personal Information Work Experience
Business Report
Page 30
Sheikh Abdullah
House no. 287, Defence Phase II, Karachi Email: [email protected]
Cell no: 0343-2045119
An entrepreneurial, detail oriented and highly motivated individual with diverse experience. Offer strong analytical and problem solving skill. Excellent communicator adaptive learner and trustworthy team player.
Work Experience
Marketing Manager Jan 2013 - Present Gul Ahmed co.ltd 1 Year experience, working efficiently and effectively.
Assistant Marketing Consultation April 2012 – Dec 2012 PTCL ltd. Assist the manager regarding all the transaction.
Master In Business Administration in Marketing (MBA) University of Karachi GPA 3.1
Bachelor of Business Administration (BBA) University of Karachi (2011) GPA 3.4
Father Name Sheikh Karim D.O.B 28 July, 1992 Religion Islam Nationality Pakistani Objective Education Personal Information Work Experience
Business Report
Page 31
Usama Ansari
House no. 145, Defence Phase II, Karachi Email: [email protected]
Cell no: 0346-2273613
An entrepreneurial, detail oriented and highly motivated individual with diverse experience. Offer strong analytical and problem solving skill. Excellent communicator adaptive learner and trustworthy team player.
Work Expe.r rience
Marketing Manager Jan2012-Jan 2013 - Present Samsung Co.ltd
2 Year experience, working efficiently and effectively. Manage marketing responsibilities
Master In Business Administration in Marketing (MBA) University of Karachi GPA 3.2
Bachelor of commerce (B.com) University of Karachi (2011) 1st Division
Father Name Muhammad Iqbal D.O.B 05 oct, 1992 Religion Islam Nationality Pakistani Objective Education Personal Information Work Experience
