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Project Energy Drinks

Project Energy Drinks

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Published by adeel
Project Energy Drinks
Project Energy Drinks

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Published by: adeel on Jan 27, 2011
Copyright:Attribution Non-commercial

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05/02/2013

 
Vision statement:“TO MAKE THE COMPETITION IRRELAVENT” Mission statement:“To provide the best quality product to the potential customers comparatively at low price and high quality by using effective distribution channels “
 
ENVIRONMENTAL ANALYSIS:
Competitive Forces:
POLITICAL
The political stability of Pakistan is highly uncertain therefore every investorhas to think intensively before investing his capital. But from last few years,Pakistan’s industry is showing considerable growth and opportunities for newinvestments, due to consistent policies of the Musharaf government.
In this industry there is not proper Trade association based on which areplatform regulatory requirements could be set.
Challenge faced in this sector lie in the face of smuggled goods that penetrateinto the market and present branded products with stiff competition and theprice conscious consumer in Pakistan on average ends up buying the foreignsmuggled product, which is cheaper and more affordable only realizing throughexperience if the product used is suitable.
Government
taxes formulate at least
50%
of the product price other than thecost of production.
Generally
 
40%
taxes are applicable on FMCG.
Import
duty of 
15%
is charged on importing shampoo’s raw material and it addsthe
25%
value to custom duty. Besides this there is not check and balance onimport that means an ordinary person/company can also import on same rateof duty on which a giant company is importing.
Manufacturers in Pakistan are offered with so called incentives to competewith other imported goods in terms of their quality and value to customers.
Govt. of Pakistan doesn’t offer subsidies to its industry like in China; electricityis subsidized for its industrial units.
 
ECONOMIC ENVIRONMENT:
GDP is targeted to
grow by 8%
in
2005-06
, with a growth in
manufacturing(10.2%)
and continuing robust performance in
services (15%)
and
agriculture(5%-6%).
Exit from the IMF Program marks an important milestone.
The overall fiscal deficit that averaged has declined to 3.2% in 2005-06.
The per capita income of Pakistan has reached up to
$847;
Pakistani market isquite unsaturated for introduction of new drinks products regarding sportsdrinks. With rise in per capita income and standards of living, consumption of per capita income is expected to increase.
Targeted trade deficit for the year
2006-07
is
$ 9.4bn
while it had beencrossed
$ 2.3bn
in just two months after budget speech.
Rate of 
 
inflation is increasing on fast pace, which directly affects newinvestments, because inflation is directly proportional to interest rates.
The literacy rate of Pakistan is estimated at 54% which is good for us to launcha sports drink because with the increase of knowledge sports person are moreconscious about their health.
Cost of production and imported raw material are very high but in the case of drink manufacturing most ingredients are less costly and locally available.
Expo canters are being introduced in some major cities to robust Pakistan’sexport revenue so we can also export sports drink in future and the Expocenters display will help us a lot.
In 2006-07 trade policy, Freight subsidy scheme has been modified fordiversification of markets/products, which will reduce the furthermanufacturing (plant) cost because we are to import one part of ourmanufacturing plant.

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