THE COMPREHENSIVE PROJECT

MAX DRISTRIBUTERS
AN AUTHORISED AGENCY OF

PARLE-AGRO BEVERAGES PRODUCTS

For
The partial fulfillment of degree course

Masters of Business Administration (MBA)

Under Guidance of:
DR. B.L. BAJPAI (HEAD OF DEPARTMENT) Deppt. Of business administration University of Lucknow

Submitted by:
ABHISHEK SAXENA MBA(EB) 4TH SEM roll.no.- 71101

Declaration

I hereby declare that this project entitled MAX DISTRIBUTERS Business Plan on Parle-agro Agency is my own individual and original work and has not been previously submitted and approved for another degree or diploma.

ABHISHEK SAXENA MBA (E - Business) SEM 4th Roll No. 71101 Department Of Business Administration University of Lucknow Lucknow 2

Acknowledgement

With profound sense of gratitude, I acknowledge my indebtedness to the Almighty for His grace, which let me complete my project without any major hurdle.

I express my deepest sense of gratitude and sincere thanks to Dr. B.L. BAJPAI (head of department) Deptt. Of Business Administration, University of Lucknow, who was my Project Guide for his continuous encouragement, instructions and insights that helped this project chart a proper course.

Lastly but sincerely, I would like to express my regards from the bottom of my heart to my parents, friends and other family members for their support and affection for being the pillar of encouragement and inspiration throughout this project work.

ABHISHEK SAXENA

TABLE OF CONTENT
1.

EXECUTIVE SUMMERY ---------------------------------1

a. Objective b. Mission c. Key to success

2.

ABOUT THE FIRM --------------------------------------3

a. Company Ownership b. Company Location c. Startup plan

3.

PRODUCTS ---------------------------------------------6
a. Product Description b. Competitive Comparison

4.

MARKET ANALYSIS ------------------------------------7

a. b. c. d. e. f. Market Segmentation Market Analysis Market Need Market Trends Buying Trends Distribution Channel

5.

STRATEGY & IMPLEMANTATION---------------------13

a. b. c. d. Strategy Pyramids Competitive Edge Market Strategy Sales Strategy

6.

MANAGEMENT REPORT-------------------------------17
a. Organizational Structure b. Personnel Plan

7.

FINANCIAL PLAN--------------------------------------18
a. b. c. d. e. Important Assumption Break Even Analysis Projected P&L Projected Cash Flow Projected Balance sheet

BIBLIOGRAPHY

-INTRODUCTIONParle Agro has been a trusted name in the beverage industry providing wholesome and healthy agro-based drink brands. It has successfully launched some of India's leading beverages like Frooti, Appy and N-Joi, and packaged drinking water, Bailey, over the last two decades. In a country where health consciousness is growing at a rapid pace, Parle Agro, with its numerous fruit-based drinks, has struck a chord with the masses. It brings to the consumers the magic of premium quality fresh fruit drinks conveniently packed and available all through the year. Fruit beverages are wholesome, easy to digest, highly refreshing with natural nutritional values as compared to synthetic and aerated drinks. Parle Agro's Frooti is India's first national mango drink. The mango segment is 95% of the Indian fruit drink market and Frooti has 85% market share in the tetra pack segment. Made from fresh and premium Indian mangoes, Frooti has grown to be one of India's top 50 most trusted brands. When Parle Agro launched N-Joi with real fruits and fresh milk, it not only launched a new healthy beverage, but also created a whole new category in India. The milk shake claims to contain no preservatives and is full of nutritional goodness. It's a delicious filler and an apt quick refreshing nourishment for today's hectic stressful life. Appy, another premium drink from the Parle portfolio, is a deliciously light and refreshing apple drink made from orchard fresh apples from Himachal Pradesh. It's a favourite with the young generation as a tasty, healthy, nourishing drink.

Parle Agro has also diversified into the fitness industry and has set up fitness centres in Juhu and Malad in Mumbai with aggressive plans to expand nationally. Says Ms Nadia Chauhan, Director, Marketing, "Parle Agro remains committed to refreshing India and constantly cater to the health and quality-conscious consumer through newer and varied initiatives." Parle Agro is the first to introduce fruit drink in a tetra pack in India, the first to introduce apple nectar and the first to introduce fruit drinks in PET bottles in India and the first to develop a real fruit and dairy fresh milk brand. There is increasingly demand of the beverage product in households. Growing importance of health consciousness can be gauged from the fact that there has been 40% increase in sales of beverage products especially soft drinks over last 3-4 years. With increasing demand of beverage products have lead to open up bars and restaurant. Parle Distributors plans to handle area of Gorakhpur city and local for distribution of products of Parle beverage. The agencys primary focus shall be small outlets which has potential of selling around two to three crate of product.

1:- EXECUTIVE SUMMARY

This business plan has been prepared in order to raise the financing necessary to start a distribution agency of PARLE-AGRO, to provide necessary market for PARLES BVERAGE products. There has been a growth in sales of Beverage products. PARLE DISTRIBUTOR is channel distribution management agency of PARLE-AGRO India. We are going to manage the distribution of beverages of Parle-agro. The area of operation will be Gorakhpur City and adjoining rural areas. We are going to cater outlets; Restaurants, Hotels, Dhabas and most importantly school and collages. We will also provide distribution of Parle beverages in parties also. Agency is based on assumption that there is a yawning gap between demand of beverage product and supply. Parle Distributors will try to handle entire area authorized by Parle-agro to cater; we will try to reach each and every outlet, which can sell our products. There will be all the flavor of the Parle beverages available so that the energy segment of the meet shall be keeps important. Parle DISTRIBUTORS will try to capture each and every part of the market. We are going to employ three vehicles for distributing the beverages. This will not only help us to access every corner but also help customers to update their stock regularly. We are going to visit each outlet daily with in the city and in rural are after a gap of two days.

1.1 Objective
The objective are specify goal which are achievable by parle Distributors with in first two years of operation these objective are outlined below. 1) Sales of 2.5 lakhs units till the end of this season. 2) To double the sale in next season. 3) To achieve break even with in 16 months.

1.2 Mission
we aim at providing access to Parle beverage to every one with in their reach and will try to create thrust by displaying the product so that sale in my area multiply annually We are will provide each every outlets, Hotels, Restaurant And other prospect market with all flavor. We will help each & every prospect market to update there stock at by the company. We will also provide the flavor to marriage party.

1.3 Key to success

The following facts of parle distributors it financial success. 1) Unique service, unmatched distribution activity. 2) Low operating overheads. 3) Dedication and hard work of the founders 4) Fast inventory turnover.

2:- ABOUT THE FIRM

Parle distributor is new agency of Parle beverage in Gorakhpur city t to manage distribution of various products of Parle beverage. There is no distributor of Parle agro beverage in Gorakhpur city. So to capture the opportunity we have planned to take agency of Parle agro in Gorakhpur city. There is great opportunity of growth in near future.

2.1 Company Ownership

PARLE distributors will be created as sole proprietorship owned by its founder, TANUSHRI BOSE. The Company will be operated from Tanushris home. The finance required for starting this business is 00,000/- will be arranged by taking bank loan. Rs.30, 00,000/- . The owner is investing 20, 00,000/-. The remaining 10,

2.2 Firm Location and Facilities

This business will be operated out of my office to be situated APL Plaza, Golghar, Gorakhpur (U.P.). The Warehousing and stocking will also be done here in store. The current address of the firm is:PARLE DISTRIBUTORS APL Plaza Golghar GORAKHPUR

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2.3 Start-Up Summary

The start up cost is listed in the following page. The startup cost need is Rs.30,00,000/-. The major expense need is in the security for the dealership for the company, which is Rs.10, 00,000/- and one Tata407 and two Three-wheelers. Whose cost reaches to about Rs.10, 00,000/and we plan to start with the Rs.8, 00,000/- initial inventory. Table: start-up Start Up Requirements Start-up Expenses Legal Broacher Stationary A.C. and fittings Insurance Security for office place+ salary Other Total Start Up expenses Start up assets needed Cash balance at startup Security for dealership Start-up inventory Tata 407(1) & Carriage tempo (2) Total Assets Needed Total Requirements Funding Investor (Abhishek)
Total Investment

3000000

5,000 5,000 5,000 30,000 16,000 24,000 15,000 1,00,000 100000 1000000 800000 1000000 29,00,000 30,00,000 20,00,000 20,00,000 30,00,000 20,00,000 10,00,000 10,00,000 11

Total Loaning amount required :Total Requirements Less: Total Investment Loan Amount required Loan Break up Long term loan 5yrs @13% interest

Total Term Loans

10,00,000

3:- PRODUCTS
We will offer all the product of beverages product of Parle. There are many products of which are market leaders. So there is no any doubt of flattering of this business.

3.1 Product Description

The product quality will be as per present company that is at parle-agro owners current flavor and brand available are-:

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 Frooti (mango flavor) Appy fizz (apple flavor ) N-joy (real fruits and milk flavor) bailley mineral water (pet bottle) All the above products are also available in pet bottle.

3.2 Competitive Comparison

The only way we can hope to grow well is to work very hard and try to capture parleimum area of Gorakhpur city. We need to handle all the potential market very effectively.

4:- MARKET ANALYSIS

Parle Agro has been a trusted name in the beverage industry providing wholesome and healthy agro-based drink brands. It has successfully launched some of India's leading beverages like Frooti, Appy , N-Joi, and packaged drinking water, Bailey, over the last two decades. In a country where health consciousness is growing at a rapid pace, Parle Agro, with its numerous fruit-based drinks, has struck a chord with the masses. It brings to the consumers the magic of premium quality fresh fruit drinks conveniently packed and available all through the year.

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For beverages, a survey was conducted among 20 dealers of beverages to find out the opportunity and threats prevailing in the market. The following findings were quite encouraging which are as follows: 1. Of the total sales in terms of volume 90% belongs to the companies who are operating at state (regional) level. 2. It has more seasonal business as people are using more in the summer season. 3. Annual sale of Gorakhpur market is itself more than Rs. Ten million. 4. The customer is highly dependent on the availability of particular brands. 5. The market of beverages is growing at the rate of more than 40% as more and more people are switching from old fashion drink.

4.1 Market Segmentation Strategy

Parle is operating in India since last 80 years. In order to capture the parle market we need to work day in and out. We will target all the potential outlets, hotels, restaurants and public gathering never including railway station & roadways. These are known all age group will use brands. We will focus mainly on potential costumers. Only limitation will be how much area Parle-agro allows us to cover. As there is potential of high growth of beverage market in near future. There is guarantee of growth of the beverage market because today people spend 66% of their money on food and cloths, which include almost 80% of money on food. Following reason shows in support the above points:

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1. Growth of income and consumption pattern of the people. 2. There is growth of the literacy rate. 3. Favorite in the teenagers and influence of children in family buying. 4. Growth of consumption of frozen food. 5. Influence of other people and television which shows the advertisement of the beverages. The target markets almost every individual who can afford to a cold drink.

4.2 Market Analysis

Potential Customer Roadways/ Railways Outlets Hotels, Restaurants, Dhabas Small outlets and dealers Total

Growth 40% 35% 45% 40%

4.3 Market Need

Parle beverages are popular product as each individual can afford

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Since our target market is in growth stage and is service seeker, the most important market needs are service, customized product, in that order. One of the key points of our strategy is the focus on target segments that know and understand these needs and are willing to pay to have them filled. All beverages users need availability and service. The self reliant ones, however, supplies those needs themselves.

4.4 Market Trends

The most obvious and important trend in the market is competitive price and availability of products. This has been true for years, but the trend seems to be accelerating. We see the major brand-name manufacturers putting their product at competitive prices. The most striking trend in the market is the increase in demand of beverages in areas adjoining Gorakhpur city. There is annual compound growth of 8% in the adjoining area. Now there is very high growth of annual sale of parley beverages. Trend clearly shown no indication of flattening in near future. This trend shows that now people are clearly inclining toward the soft drink.

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4.5 Competition and Buying Trends

There is no doubt that we compete much more against coca colas brand maza and various mineral water brands in mineral water segment like bisleri, kinley We need to effectively compete with them by getting access to all the potential market. As there is no agency of either beverage giants. So the future is very bright for this business. Our focus group sessions indicated that our target segment think about price but would buy based on quality service if the offering were properly presented. They think about price because that's all they ever see. They end up in the box-pusher channels because they aren't aware of the alternatives. Availability is also very important. The customers tend to take the product available to them.

4.6 Distribution Channel

Producers normally use a number of marketing intermediaries for taking their products to users. Marketing intermediaries have been a variety of names such as sole selling agent, marketers wholesalers, distributors, stockiest, semi wholesalers, franchise, authorized representatives, brokers / commission agents and jobbers. All such intermediaries constitute the distribution channel. The depot/ showrooms and other direct outlets of producers also form part of the distribution channel. Our agency will directly deals with the filling plant of Parle agro Private Limited. We will operates in Gorakhpur territory, earns lesser commission compared to higher levels in the channel. The pattern of distribution channel will be Manufacturer-------Distributor--------Dealer-------- Consumer

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The dealers/outlets will be selected on the following basis: Business reputation and standing. Business capacity and salesmanship. Expertise and previous experience in the line. Financial capacity. Credit worthiness. Capacity to offer to customer. Good relation with consumers especially bulks consumers, sub dealers if any.

5.Dealer compensation / Margins Dealer margin as trade margin is no doubt the prime element in dealer manufacture relations. So in the first place the agency will insure that the trade margin or dealer communication is adequate to make a reasonable profit out of the business. Dealer Motivation To be effective the dealers have to be constantly motivated. The agency will constantly strive to satisfy the need of the dealers. It is aptly said that a wise firm gets good band of dealer and good dealer settles down with the wise firm.

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Performance Appraisal of dealers The firm will evaluate the performance of the individual dealer which is the important aspect of channel management. This will be done to identify the specific strength and weakness of dealers. Following criteria is set up to appraise the dealer: Market share sales intensity. Storage space provided. Inventory holding support. Standards of service provided to customers. Enlistment of new accounts. Market awareness. Promotional support. Public relation. Timely payment of bills. Submission of reports.

6:- MANGEMENT REPORT

We are planning to startup with strength of 10 people. Apart from the aforementioned co-owners we will have one Accountant, and 2 sales men, 3 Driver, 3 helper and a watchman; we shall increase the work force as and after our business grows.

6.1 Organizational Structure

Our organizational structure will be quite simple we will have sales people and relate helper to be handled by the co-owners while a clerk would look after entire office department. We shall train our sales force to increase the target market and handle the customers. some common problems faced by the

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6.2 Personnel Plan

The Personnel Plan reflects the need to bolster our capabilities to match our positioning. The corner stone of our personnel plan is to parleimize productivity and minimize burden on agencys operating expenses.

YEAR
Sales Man (2) Driver(3) Helper (3) Watchman Accountant Total Payroll Total people

2007
72,000 72,000 72,000 24,000 48,000 2,88,000 10

2008
72,000 72,000 72,000 24,000 48,000 2,88,000 10

2009
72,000 72,000 72,000 24,000 48,000 2,88,000 10

7:- FINANCIAL PLAN 7.1 Important Assumptions

1) Interest rate to be stable at 13% for the year 2008 2009, 20010. 2) Credit sales Limit will be 30%. 3) Tax rate 30%. 4) All currency value in Indian Rupees.

7.2 Break Even Analysis

Parle Distributors break-even point will be achieved in 16 Months at 8300 units each month with monthly sales at Rs.11, 28,800 20

-:Break Even Analysis:Assumptions:Sales Price / unit

Variable Cost per unit (including C&F)

360/120/20,60,000 16/-

Total Fixed Cost F.C. Contribution Margin/ Unit C.M.

BEP (F.C. /C.M.)

= 1,28,750 Units

Approx sales (units/month) Break even (months) Approx (months)

8,300 15.5120 16

7.3 Projected Profit and Loss

The most important assumption in the Projected Profit and Loss statement is the gross margin, which is supposed to increase. This is up from barely 5% in the last year. The increase in gross margin is based on changing our sales mix, and it is critical.

Projected Profit and Loss

Sales Cost Of Goods Sold Gross Margin 2008 1,35,45,600 1,19,52,000 15,93,600 2009 2010 1,42,22,880 1,44,93,792 1,25,49,600 1,27,88,640 16,73,280 17,05,152

General and administrative expenses

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Salaries to Employees Fuel Depreciation(Vehicle) Depreciation(Office Equipments) Legal Insurance Stationery Advertisement Total expense PBIT Interest on loan @13% PBT Tax @ 30% Net Profit

2,88,000 94,000 1,00,000 1,500 5,000 16,000 5,000 5,000 5,14,500 10,79,100 1,30,000 9,49,100 2,84,730 6,64,370

2,88,000 1,25,000 1,00,000 1,500 0 16,000 0 5000 5,35,500 11,37,780 1,04,000 10, 33,780 3,10,134 7,23,646

2,88,000 1,50,000 1,00,000 1,500 0 16,000 2,000 5,000 5,62,500 11,42,652 78,000 10,64,652 3,19,396 7,45,256

7.4 Projected Cash Flow

The cash flow depends on assumptions for inventory turnover, payment days, and accounts receivable management. Our projected collection is not ideal, but it is realistic in this market, and hard for us to effectively change. We're better off planning for it than ignoring it. We plan to have inventory turn according to the quota allocated for my area. We will have around 8 Lakhs inventory turn each month in peak season which will comprise of the month of April to August, mild peak season comprise of the month of March and September and October, and off season comprising of the month of November to February.

Projected Cash Flow

Cash Received Cash from Operations: Cash from Sales Cash Payment Cost of Inventory Salaries Legal

2008

2009

2010

1,35,45,600 1,19,52,000 2,88,000 5,000

1,42,22,880 1,25,49,600 2,88,000 0

1,44,93,792 1,27,88,640 2,88,000 0 22

Fuel Insurance Stationery Advertising Tax Interest Total Cash Payment Cash Provided by Operations Investing Activity Security Vehicle A. C. Net Cash used in Investing Financing Activities Personal Finance Bank Loan Total Less: Repayment of loan Net Cash Provided/Used in Financing Net cash flow Add Opening Cash Bal. Closing Cash Bal.

94,000 16,000 5,000 5,000 2,84,730 1,30,000 1,27,43,730

1,25,000 13,000 0 5000 3,11,634 1,04,000 1,33,96,234

1,50,000 10,000 2,000 5,000 3,19,396 78,000 1,36,41,036

8,01,870 1,000,000 1,000,000 30,000 2,030,000 20,00,000 10,00,000 30,00,000 4,00,000

8,26,646 0 0 0 0 0 0

8,52,693 0 0 0 0 0 0

4,00,000

4,00,000

26,00,000 12,71,870 0 12,69,560 4,26,646 12,71,870 16,98,516 4,52,693 16,98,516 21,51,209

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7.5 Projected Balance Sheet

The Projected Balance Sheet is quite solid. We do not project any real trouble meeting our debt obligations--as long as we can achieve our Specific objectives.

Projected Balance Sheet:-

Assets:-:Current Assets

Cash Debtors
Total Current Assets
-:Long-term Assets

2008 12,69,560 3,66,310 16,35,870

2009 16,98,516 2,41,130 19,39,646

2010 21,51,209 1,12,647 22,63,856

Security Vehicle A.C.

Total L. T. Assets

10,00,000 10,00,000 28,500 20,28,500 36,64,370

10,00,000 10,00,000 27,000 20,27,000 39,66,646

10,00,000 10,00,000 25,500 20,25,500 42,89,356

TOTAL ASSETS Paid in capital Retained Earnings Creditors Total liabilities and capital

Liabilities and Capital:30,00,000 6,64,370 00.00 36,64,370 30,00,000 7,23,646 2,43,000 39,66,646 30,00,000 7,45,256 5,44,100 42,89,356

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