Name: THE BREAD BAKERS Location: Status: Private Limited Company Working days: 365 Production capacity: 100-breads/

day Introduction The proposed company plans to establish a project for baking the flavored breads in different and unique shapes and sizes. Every bakery offers the bread, which is milky or simple, or diet in only one usual flavor. No bakery offers the flavored breads so far. This companys main concern is the baking of that bread. This company will helps in enjoying the people the different flavors in different shapes. All the relevant data has been collected from the bakeries and the market. Its baking process is almost identical to the baking process of the simple bread. Theres no problem in getting the required equipment as well as the material as it is all locally available. The company Bread Bakers is the first company concerning with the manufacturing of the flavored bread. It is the company, which don't only deals with the different flavors of bread but also the shapes of the bread. We are a full service providing bread bakers offering a wide variety of fresh breads, which have unique flavors and shapes. We have that new world style taste and freshness that is all but obsolete in today's society. Nature of business This business is on the basis of partnership. Every partner will equally participate in the activities of business. Nature of business of The Bread Bakers is to carry out the breads such as: Flavored breads and multi shaped bread. Mission Statement To provide our customers with bread that actually looks and tastes good. Vision The building of a community within the baking industry who voluntarily come together to meet common need and accomplish common goals. Management Plan

Partnership Deed In this service organization there are four partners who collaborate with each other. The profit deed is decided in the equal basis. Departments Production Department Purchasing Department Finance & Accounts Department Marketing Department Manufacturing unit Location Our manufacturing unit is located in -------------------------------We have selected this place because the portion of factory is free so, there are no rent charges and we have our own transportation facility so this is very feasible for us. Raw Material Following are the main raw material for the proposed project: Flour Yeast Flavors Milk Eggs etc. The entire raw material is locally available in abundance. There is no problem in collecting the raw material from the local sources. Characteristics of the project The project, which is being initiated in response to the market demand, will produce quality breads according to the customers needs. The product will be a new product in the market. Presently there is no such brand, which produces such flavored breads in unique shapes. The existing bakeries are producing the simple breads but this unit will initiate a new trend in the market. These items have a main emphasis on the morning time when the breads are mostly utilized. It is basically for those persons who are taste conscious and look for some thing new for their breakfast. This item will be distributed to all the exiting bakeries where a separate shelve will be placed. Distribution Channels Bread is easily available in every bakery. As we are offering different flavors of bread so we have decided that our distribution channels will be all existing bakeries like China Bakery, Meer Bakery, Asim bakery, al-Meraj bakery, etc.

We choose these distribution channels because these bakeries already have a large number of customers they daily visit these bakeries & when they will see our product over there they would surely like to have these flavored bread, so the reason of choosing these bakeries is that we are new in the market & we have no customer orientation. Thats why our distribution sources are all these existing bakeries. Product Profile Main Products As all the other existing bakeries are providing the three main types of bread so with the flavored breads our main emphasis will be on the same three breads which includes: Milky bread Simple bread Diet bread These introduced flavors are available in each bakery. Bread flavors Our bread flavors along with our brands include the following flavors Chocolate flavored bread by Bread Bakers Strawberry flavored bread by Bread Bakers Vanilla flavored bread by Bread Bakers Mango flavored bread by Bread Bakers Pineapple flavored bread by Bread Bakers Banana Chip flavored bread by Bread Bakers Fruit Nut Breads by Bread Bakers Butter Top Bread by Bread Bakers Cheese flavored bread by Bread Bakers Garlic flavored bread by Bread Bakers Ginger flavored bread by Bread Bakers Bread shapes Our bread is not only concern with the flavors but also with the shapes of the bread, and there are different shapes which includes : Oval Round Square Triangle Rectangle Long-shaped Cone-shaped Specialty

Most of the people dont like corners of the bread. The Bread Bakers is the first who consider this need first and now introducing the corner less bread first time in the area. Our specialty is in corner less bread in different sizes as well as flavors. Future Integration In future we, The Bread Bakers are panning to launch a new productThe Stuffed Bread. It is new and different concept. Stuffed bread is a product in which different material will be stuffed according to the choice of our customers. Market Analysis Market Research Before starting any business it is important to recognize the need of customer that either there is demand of particular product exists or not. The Bread Bakers conducted the research, which shows that the flavored bread is one of the innovations in bread industry in Gujranwala and people are willing to use it. Target market The Bread Bakers are providing their products in different sizes in very reasonable prices. Our main emphasis is on middle-income group and higher income group. Age Distribution The Bread Bakers conducted the research on the basis of age sector to analyze that which age sector will like our bread most. According to our research: o Children from age of 10 to 15 years will like it 38%. o People from the age of 15 to 22 years will like it 25%. o People from the age of 22 to 35 years will like it 23%. o People from the age of 35 onwards will like it 14%. This research shows that younger are more willing to use our product. Market Distribution The Bread Bakers also conducted research on the basis that where they should provide there product in which quantity The research shows that we should provide our product in Satellite Town market 39% of our production. 30% in Model Town, 12 % in Wapda Town, 10% in Peoples Colony and 9% in Cantt area. Strategies

PRICING STRATEGY Penetration pricing As we are in the initial stage so our main emphasis is to penetrate in the market by capturing the market share. There are many pricing strategies but we have to choose this penetration pricing strategy because we are the new entrants & we want to capture a big market share so we have chosen this type of strategy to penetrate in the market. PRICES All the existing bakeries are offering the following prices of the breads Milky, Simple, Diet Large Rs. 22 Small Rs.18 But we are providing the following prices of the flavored breads. o Fruit Nut Breads Rs. 40/o Chocolate flavored bread Rs. 30/o Strawberry flavored bread Rs. 30/o Vanilla flavored bread Rs. 30/o Mango flavored bread Rs. 30/o Pineapple flavored bread Rs. 30/o Cheese flavored bread Rs. 35/o Garlic flavored bread Rs. 35/o Ginger flavored bread Rs. 30/o Butter Top Bread Rs. 30/o 100% Whole Wheat Bread Rs. 30/Entrance Strategy The entry growth strategy for The Bread Bakers should be to focus initially and more specially to youth and status-quo customers. Marketing Strategy The Bread Bakers needs a comprehensive marketing strategy based on companys philosophy, potential growth strategy and long-term objectives of gaining a strong hold in the bread industry.

SWOT Analysis Strengths New product innovation in local area. So it will attract the people of local area. No specific competitor. Reasonable prices. Our bread will be easy available for lower income group also. Easy availability. Our outlet is Meer and China and these bakeries have their outlets in main parts of the city so the access to our product is very easy. Weaknesses o No brand recognition. Our name in baking industry is new so most of the people are not familiar with bread bakers. o No separate outlet. We dont have enough finance to construct our separate outlet. o No customer orientation in local areas. As we are newly introduce in Gujranwala so the customer is not oriented in the brand. Opportunities o First mover advantage. This product is introducing in Gujranwala for the very first time so there is no specific competitor of bread bakers so this is an opportunity. So the number of customers with us will be more than any other competitor in flavored bread baking industry. Threats o New product, may people dont accept the flavored bread o Competitors working in Islamabad may enter in local market. o Imitation by existing bakeries. May Meer and China try to copy it. Financial Plan Project fixed cost (In rupees) Land Already Available Building 1,20,000 Machinery 1,00,000 Transportation/Installation 50,000 Furniture 15,000 Vehicles 2,00,000

Total 4,85,000 Total cost of production Cost of goods sold (In rupees) Raw Material 60,000 Wages/Salaries 50,000 Utilities 15,000 Depreciation 20,000 Total 1,45,000 Operating cost: (In rupees) Administrative expanses 60,000 Selling expanses 1,20,000 Office expanses 60,000 Total 4,52,000 Financing plan (In rupees) Loan 10,62,000 Equity 7,08,000 Total 17,70,000 Financial charges (in rupees) Rate interest Term loan 10,62,000 15% 1,59,300

Other bank charges 10,62,000 1% 10,620 Total 1,69,920 Production capacity 3600 breads of different flavors and different shapes will be produced on average per year with the experienced bakers. However we are able to sell the bread crums of different flavored breads. Sources of machinery The selection of machinery and equipments is one of the important decision, there are number of Machinery Manufacturers but for this project the required machinery is locally available. Breakeven Analysis Breakeven Breakeven analysis is a tool used to determine when a business will be able to cover all its expenses and begin to make a profit. For the startup business it is extremely important to know the startup costs, which provides with the information one need to generate enough sales revenue to pay the ongoing expenses related to running the business. The graphic method of analysis helps in understanding the concept of the break-even point. However, the break-even point is found faster and more accurately with the following formula: Q = FC / (UP - VC) where: Q = Break-even Point, i.e., Units of production (Q), FC = Fixed Costs, VC = Variable Costs per Unit UP = Unit Price Break-Even Point It is based on figures for first year, the calculation is as under: Break-Even Point, Q = Fixed Cost / (Unit Price - Variable Unit Cost) Break even point = 32333.3 units The expected break even period for the company is approximately 3 years.