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This chapter gives an introduction of the report. A general background of the subject is followed by report purpose and study areas, outline of the study. Questions that determine the working areas are followed by the purpose of the study. From many years, sugar cane juice is famous for its refreshing properties. It is not only a Refreshing drink but also it is a healthy drink. People, living in hot and humid climatic conditions drink sugar cane juice as a cooling and refreshing drink. So we easily think of drink, sugar cane juice instead of bottle of mineral water. After all it is natural and safer than mineral water bottle. So we have to make the way of drinking it easier by launching packaged, sugar cane juice Day by day, our life is getting so busy so it is impossible to drink, sugar cane juice directly From, sugar cane by cutting it down. Because of the hassle sometimes, we go for other Natural drink or juice instead of drinking, sugar cane juice. So packaged, sugar cane juice can make the way easier of having , sugar cane juice with its pure taste. In several counties we can find packaged, sugar cane juice e.g. There is lots of foreign companies who are make sugar cane juice like hasna sugar cane juice, rita sugar cane juice etc. . The companies captured the market very easily which can be an inspiration for our local beverage companies to go for selling packaged, sugar cane juice So finally it can be said that as is often referred as to as the “fluid of life” Moreover, sugar cane grows everywhere in Bangladesh. So there is huge possible success is Waiting for the marketers, so marketers should think about it from now on and their focus Should be establishing the packaged,, sugar cane juice beside the other natural drinks And soft drinks
A business feasibility study can be defined as a controlled process of identifying problems and opportunities, determining objectives, describing situations, defining successful outcomes, and assessing the range of costs and benefits associated with several alternatives for solving a problem. Because of one fifth of the business ideas are commercially viable therefore analysis of the business potential and the market potential is very much important. We used SOWT analysis, financial projections and Break even analysis to have a clear understanding of the Market and Business model Viability and formulated a Differentiation Strategy for our business. We have decided to open a new business with a differentiated product which we believe to be able to stand out in the market. Our mission is to produce quality drinks and food product to the people maintaining strong ethical standard in business operations. Our vision is to be a global brand in the Beverage industry by ensuring social wellbeing of the investors, employees and the society at large. Our objective is to conduct transparent business operation based on market mechanism within the social and legal framework.
Purpose of the study:
Purpose of the study is to determine Market and Business viability, plan a business model and formulate strategy. By doing all those activities we want to achieve our objective safeguard our desire to grow as an entrepreneur. Study areas: What are the strengths and weaknesses that the organization has? What are opportunities and threats? What are the Key business factors? How to Formulate and implement strategy? How to allocate resources effectively? How to maintain growth?
Sugar cane juice is one of the earth's healthiest drinks for hydration. It is basically a natural Isotonic beverage with lots of health benefits. In Bangladesh Sugar cane grows in north Bengal throughout the year, and that is why we have planned to know the market prospects of packaged Sugar cane juice in our country. For this reason we had to do a research to find out the core issues related to this idea. Our main objective was to find out the demand of Sugar cane juice, at the same time we had to find customer’s general preferences about drinks, brand loyalty, price sensitivity in terms of buying juice, seasonal impact of Sugar cane juice, packet size, price and so on; which basically helps to accomplish the primary objective. We prepared a questionnaire and conducted a survey for our research. We are indicating some topic in this proposal that we will do for our research. However, we found that natural dinks and soft drinks compete parallel so when the question is asked about the health at that time people go for natural drink. In our research proposal we are indicate hygienic and unhygienic matter. This indicates the potentiality of the product. Moreover people always have the curiosity to taste a new product whenever it is being marketed. At the same time customer presences depends on the brand so in many cases brand plays a vital role especially for the food products. Price sensitivity is seen while people buying a natural drink because, it has become a common scenario that in our country people do not feel like buying expensive natural drinks (juice of dragon food). As Bangladesh is a Sugar cane producing country hence we have to fix the price according to the customer’s affordability. However we went for tetra pack for Sugar cane juice because an issue was raised in terms of hygienic factor about bottles, which we found from our survey. We can see that a Sugar cane juice water can capture the market of soft drinks, according to the respondents demand they would like to buy packaged Sugar cane juice not only from the convenience store but also from the fast-food shop. At the end of our survey, we got the positive vibe or opinion from general people, which give us the indication of producing packaged Sugar cane juice.
SWOT analysis (alternately SLOT analysis) is a strategic planning method used to evaluate the Strengths, Weaknesses/Limitations, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture
or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective. Strengths: characteristics of the business, or project team that give it an advantage over others • Weaknesses (or Limitations): are characteristics that place the team at a disadvantage relative to others • Opportunities: External chances to improve performance in the environment • Threats: External elements in the environment that could cause trouble for the business or project
Highly differentiated product. Bottled Sugarcane Juice is one of a kind and therefore has the first mover advantage Has clear and motivating mission, vision, objectives. Has Strong Marketing and sales strategy. Production quality.
No previous experience in beverage industry. Completely new idea means high chances of failure if not executed properly Negative publicity.
Increasing demand for bottled drinks. Easy to get raw materials, locally accepted. Scope for further innovation, creative and flexible options.
Less awareness of the people lead them to purchase Sugarcane Juice from roadside sellers. Dependence on bottling partners.
Our product would be bottled sugarcane juice for the first time in the market of Bangladesh. We would be only focusing on the juice. The bottling would be done
differently for different target markets. We would be offering a can bottling of 250ML, a bottle of 500ML and a bottle of 1 liter. We would be mainly targeting the group of people who loves sugarcane juice but hesitates to have it on the road side. For them we would be bottling the fresh cane juice and would be distributing all over the country to different retailers including the urban areas as well. Our products would be tested and verified by the ISO and the government so that the customers feel safe to buy our drink and have it. There are also some future plans for our product. If we see success with the business, then we would be expanding it further more to different product line.
As we all know technology plays an important role being one of the most crucial factors while setting up a new business or industry. For your product, technology has got a lot to contribute in it to produce a successful and competitive product in the market. We have planned to come up with the bottling and exclusive packaging of the sugarcane juice in bottle, cans, pet bottles, etc. And of course for such a result the most advanced technology has to be used. The bottling, packaging, labeling, etc would be done using the latest technology in the market. We cannot neglect the technology adapted by our competitors. We have planned for something unique that would differentiate our product from the competitor’s. Therefore we decided to concentrate heavily on the production process, specially while the use of preservatives and flavors which is also known as Ultrafiltration technique. This requires a huge investment to introduce such a technology that would give you the original taste of the sugarcane juice thus improving the quality even more. This technique helps in chemical free, nil sulphur, refined quality sugar. There is also an ongoing research for the product that would help the production process for further upgradation making some minor changes to the existing machinery for the combination of phosphofloatation process for clarification, filtration and decoloursation deployed to produce sugar with nil sulphur and low ash content.
The best part to start business with such an idea is that there is hardly any direct competition for the product in our country. But yes of course there are international competitors for such industries where we have to compete to survive in the market. Therefore the market of Bangladesh for such a business is offering us the first mover’s advantage which would be of great importance to succeed in the market by capturing a solid share of the market in the very first entry. Our key international competitors would be
Enkay (India) Alibaba (India) Aohata (Japan)
However in the market we would be competing with other manufacturers and producers of Bangladesh beverages. They would be as following:
Aerated drinks Branded and unbranded fruit juices Fruit based milk drinks Natural mineral water Fruit shakes Branded and unbranded coconut water
Barriers to entry would be partially low since the market has hardly got any company producing sugarcane juice. Companies might copy the concept of our business and enter the market easily. High investment in setting up the business, implementing the advanced technology and the extensive employee training and high development cost makes it a high barrier to entry. In Bangladesh, sugarcane is a popular fruit and has severe popularity for its juice available in the street corners of Bangladesh. But many of us do not prefer it having at the street corners since we find it dirty and very much unhygienic. So this would be the very first introduction of sugarcane juice bottled and packaged in Bangladesh and available in the markets which gives it a unique characteristics and differentiate from the competitors. It would be initially difficult for the competitors to copy our products since we have done many research and findings in different markets. It might be risky for them as our product would be launched and would be running by then capturing a solid market share. The taste of their product might be different from ours as
we would be using sophisticated technology for our production process and also a very high investment and development cost is needed for such a business. After launching the bottled or caned juice our competitors might think of entering the market to quickly gain market share. They may try to come up with something more innovative regarding the production process. So if they can meet all the criteria and fulfill them then at least they need 3 months to enter the market and start taking our customers
Our enterprise would be operating in the beverage industry, located in Gazipur where other industries have set or are operating business. We would be having a moderate size with an excellent growth rate. It would be built in such a way that the outlook gives a good impression about our industry from the outside. We are expecting to account for at least 20% of off-trade volume sales. As we all know that there are products in the beverage industries, therefore there might be less demand for our product but we are planning to provide the market with sufficient supply of our product so that we can always meet with the least possible demand. However there are other forces that drives the market. This would be the first time ever that a company is introducing bottled sugarcane juice in the market of Bangladesh. Therefore it is innovative enough for quickly capturing a large amount of the market. Moreover there are hardly any government regulations for such products since it is new in the market and the government is continuously encouraging for such products..
It is one of the most important factor to consider before starting up a business. An entrepreneur should have a perfect business model in hand which should describe how the business would generate revenue after meeting up with all the costs. Therefore we have also prepared a business model for our business proposal. We would be directly distributing our products from the factory to the retailers. We would be providing them with some promotional activities on a regular basis so that our products get sold and we can easily generate some revenue from it. Another advantage of such step is that people would get to know about our product and if the pricing is done moderately then the people would definitely buy our products and thus we would be easily covering all the costs that includes licensing costs and others and come up with a good sales revenue at the particular interval.
Marketing and Sales Strategy
We are pre dominantly using Guerrilla marketing strategies original, low-cost creative marketing techniques that allow a small company to wring more bang from its marketing bucks.
Pinpoints the specific target markets the company will serve. Determines customer needs and wants through market research. Analyzes a firm's competitive advantages and builds a marketing strategy around them. Creates a marketing mix that meets customer needs and wants.
Management and Personnel Requirements Intellectual Property
The value of an enterprise is made of physical assets, various financial assets and, finally, intangible assets, i.e., intellectual capital (IC). The term intellectual capital conventionally refers to the difference in value between tangible assets (physical and financial) and market value. Measuring the real value and the total performance of intellectual capital's components is essential for any corporate head who knows how high the stakes have become for corporate survival in the knowledge and information age. So, the main point is how an organization can affect the firm's stock price using the leverage of intellectual assets. Intellectual Capital is normally classified as follows: Human Capital The value that the employees of a business provide through the application of skills, know how and expertise. Human capital is an organization’s combined human capability for solving business problems. Human capital is inherent in people and cannot be owned by an organization. Therefore, human capital can leave an organization when people leave. Human capital also encompasses how effectively an organization uses its people resources as measured by creativity and innovation. Structural Capital The supportive infrastructure, processes and databases of the organisation that enable human capital to function. Structural capital includes such traditional things as buildings, hardware, software, processes, patents, and trademarks. In addition, structural capital includes such things as the organization’s image, organization, information system, and proprietary databases. Because of its diverse components, structural capital can be classified further into organization, process and innovation capital. Organizational capital includes the organization philosophy and systems for leveraging the organization’s capability. Process capital includes the techniques, procedures, and programs that implement and enhance the delivery of goods and services. Innovation capital includes
intellectual properties and intangible assets. Intellectual properties are protected commercial rights such as copyrights and trademarks. Intangible assets are all of the other talents and theory by which an organization is run. Relational Capital Consists of more identifiable items such as trademarks, licences, franchises, but also the less definable, such as customer interactions and relationships. The notion that customer capital is separate from human and structural capital indicates its central importance to an organization’s worth.
We will try and get patent from the WIPO ( world intellectual property organization) regional office in Bangladesh. The requirements to be fulfilled are given below. 1. Filing information 2. Power of Attorney 3. Patent in Bangladesh 1. 2. 3. 4. Concession of the Patent Grant: 20 years Concession of the Utility Model or Design Application: 15 years Member of the Paris Convention: Yes Bangladesh is a Member of the PCT (Production, Tax, Cradit)
Patent Filing Preliminary Exam Patent Publication: 18 months from the priority date Formal Examination Request: Before 36 months from the filing date. Must be requested after 60 days from the patent publication date. 5. 90 days to respond office action from the formal examination. 6. Acceptance or rejection 7. Payment of the Final Taxes and Title.
On the other hand we will have to be certified BY Bangladesh Standard And Testing Institution (BSTI). We follow the BSTI product labeling policy strictly.
Product Leveling Policy
There is a Product Labelling Policy, 2006 in Bangladesh. At present manufacturer's/Impoters labell their product at their own choice. To realise the importance of national product labelling standards. Manufacturer's name, full address and Country of origin has been incorporated in the product labelling for all products. In addition, Ingredients, Composition, Batch no., Code no., Expiry date/Use best before on and other information which are necessary has been incorporated in Chemical, Agriculture and Food products. The weights and measures will be expressed in System International Units.
We will resister our company /brand name from the Bangladesh Office of Joint stock companies and firms for the purpous of the ownership of the Copyright The Registration of Copyrights and their protection are governed by the i) Copyright Act 2000, and ii) Copyright Rules 2006 A copyright more or less gives the right to do and authorize the doing of any of the following acts, namelyi. to reproduce the work in any material form;
ii. iii. iv. v. vi. vii.
to publish the work; to perform the work in public; to produce ,reproduce ,perform or publish any translation of the work; to make any cinematographic film or a record in respect of work; to communicate the work by broadcast or to communicate to the public by loud-speaker or any other similar instrument the broadcast of the work; to make any adaptation of work etc.
Registration of copyright The steps for Registration 1. Application in triplicate with prescribed fees. 2. To serve notice of concerned application to every person who has any interest in the subject matter of that application. 3. If the Registrar receives any objection he may after holding such inquiry as he deems fit, enter such particulars of work in the register of copyright, which he considers proper. Registrar then sends copies of the entries made in the register to the parties concerned.
The main equipment needed for the making sugarcane juice are divided into stage Mill station Cleaning machine Grinding maching Pre –treatment (soaking) Clarification Water jet Assembler Thickener Evaporation Drying Machine Vacuum Ultra filtration Condenser Filling machine
Sugar cane juice is made by evaporating cane juice to concentrate the sugar content of the juice. This requires a continuous boiling process of from three to four hours at about 210 degrees Fahrenheit. The juice must be skimmed and clarified throughout the procedure. During the first minutes of cooking impurities will begin to rise and form as a thick dreggy foam on top of the juice. Only when the juice begins to bubble through this foam should the heat be reduced and the dregs removed. This is the first time that skimming should be done, though dregs from this point on should be skimmed as they accumulate. The inner ring should now be put in place and the heat increased immediately after the initial skimming. The heat should be increased to a point where the juice flows (bubbles) evenly over the inner ring. The boiling action of the juice will force the dregs over the inner ring. The dregs will then collect between the inner ring and outside rim of the kettle, these are to be removed as they accumulate. The boiling height of the liquid must be maintained to keep the juice flowing evenly over the inner ring. This is the second most important step in producing clean syrup-next only to the initial skimming. If for any reason this flowing process fails (the dregs moving over the inner ring) the juice should be skimmed of dregs until the boiling height of the liquid can be reestablished—by increasing the heat/adding a small amount of baking soda. There are procedures that can be followed after the inner ring is put in place that will facilitate cooking and refining the syrup. Several gallons of water should be added to juice from cane that has been cut down for several weeks before cooking as well as to drought stressed cane. A teaspoon of baking soda, or several at different intervals, can be added (dissolved in a small ladle of water) to help bring the dregs over the inner ring. The baking soda can be used to raise the boiling height of the juice should it drop while cooking. A
small cup or so of lemon juice can be added to the cane juice to prevent a salty taste/retard crystalization especially useful for cane grown with ammonia nitrate. Cane juice can be left in the kettle overnight if the initial skimming is completed before leaving for the night. Juice can sour overnight in the kettle if not skimmed, as well as in the holding tank, if the weather is too warm. Juice that is too sour must be discarded. However, juice that is slightly sour is easier to cook and produces a clearer syrup; dregs tend to rise easier in juice that is slightly sour. In fact, cane is usually cut down after the first frost for this reason. The juice will darken and begin jumping when nearing syrup. Strips of coker sacks can be placed next to the inner ring to prevent impurities from going back into the kettle. The amount of heat is reduced as the syrup nears the proper thickness (32 to 33 degrees on the syrup hydrometer). The last few degrees should be cooked slowly to prevent burning the syrup and causing heat coagulation which appears as a dark settlement in the bottled syrup. The thickness of the syrup can also be checked in the final stages of cooking by allowing some syrup to flake off the skimmer. Some syrup can be put in a jar and cooled in water to check for thickness. The syrup should be cooked to about 32 to 33 degrees on the syrup hydrometer. Syrup cooked beyond 34 degrees will probably sugar. When the proper degree of thickness is reached, the heat is cut off and the dampener opened to cool the syrup quickly since the syrup will continue to cook as long as it remains in the heated kettle. Occasionally, during the cooling process a dreggy foam may form on top of the syrup which should be skimmed off. When the syrup begins to bubble through the foam, it should be taken up and strained through a clean coker sack/cloth baby diaper or flannel while still hot.
Fig; Production process of Sugarcane Juice
Regulations/Environmental Issues Critical Risk Factors Data Analysis
The first question of the set of 15 questions was about the age limit of the respondents. We collected all data from the age group starting from 15years. Most of the respondents fall into the age limit of 16-25 years which is 545 of the total respondents. 18of the 50 respondents were 26-35 years of age which is 36%
(below15 16-25 26-35 36or above)
36or above), (below15, 0, 0% 5, 10% 16-25, 27, 54%
26-35, 18, 36%
Series1 30 group of people 25 20 15 10 5 0 (below 15, 0 (below 15 16-25 0 27 age 26-35 18 36 or above), 5 36 or above) 5 16-25, 27 26-35, 18
Q1: your most preferable rink when you are staying outside? This was the question that gives the critical information of the preference and test of consumers. 54% preferred soft drinks which is the highest. Mineral water is next which is 30%, fruit juice12%,energy drink4%
Minaral water soft drinks fruit juice energy drink energy drink; 2; 4% fruit juice; 6; 12% Minaral water; \ha 15; 30%
soft drinks; 27; 54%
soft drinks, 27
20 (minarel water, preference of 15 the 15 respondents 10 5 0 Series1 (minarel soft drinks 15 27
fruit juice, 6 energy drinks, 2 fruit juice 6 drinks energy 2
Q11: preferable size of the bottle We have seen that the bottle of 250ml and 500ml are well accepted by the respondents. Out of 50 respondents 32 prefer 250ml size which is 64%, 10 of them prefer 500ml which is 20%, 5 of them prefer 200ml which is 10% and 3 of them prefer1lt which is 6%
Series1 40 250ml, 32 30 preferences of 20 respondents 10 0 Series1 500ml, 10 (200ml, 5 (200ml 5 250ml 32 500ml 10 1lt), 3 1lt) 3
size of the bottle
(200ml 250ml 500ml 1lt)
1lt), 3, 6% 500ml, 10, 20%
(200ml, 5, 10%
250ml, 32, 64%
Q12: price expectation or 250ml sugarcane juice This is about pricing that considered to be an important issue for the particular product. 37 of the respondents that is 74% of them told that price of 250ml bottle should be not more than 20tk. It should be within 15-20tk. Among them 10 respondents that is 20% preferred 20-25tk for 250ml and the rest wanted to give not more than 10-15tk
(10-15tk 15-20tk 20-25tk)
20-25tk), 10, 20%
(10-15tk, 3, 6%
15-20tk, 37, 74%
Series1 40 30 preference of the 20 respondents 10 0 Series1 15-20tk, 37
20-25tk), 10 (10-15tk, 3 (10-15tk 3 15-20tk 37 price 20-25tk) 10
Q13: preferable buying location of the bottled Sugarcane juice We have chosen three different locations for the customers to buy from. These are Supermalls, Convenience shop, Fast- food/ Restaurant. 38 respondents that is 76% of them wanted to buy it from retail stores, 4of them preferred supermalls that is 8%, and in restaurants 16%
(super mall convenient shop resturent)
resturent), 8, 16%
(super mall, 4, 8%
convenient shop, 38, 76%
Series1 40 30 preference of the 20 respondents 10 0 Series1 convenience shop, 38
(supermall, 4 (supermall 4 convenience 38 buying locations
For some of the questions we have used Likert scale of measurement. We have assigned nominal values to analyze the correlation between each of the components. Step we followed in regression analsis Determine whether the independent variables explain a significant variation in the dependent variable: whether a relationship exists . Determine how much of the variation in the dependent variable can be explained by the independent variables: strength of the relationship.
Determine the structure or form of the relationship: the mathematical equation relating the independent and dependent variables. Predict the values of the dependent variable. Control for other independent variables when evaluating the contributions of a specific variable or set of variables. When we asked about the market potential of the as a natural drink most of them agreed That it has good potential which is about 37 in total and74% in total. On the other hand when we asked them if we use any natural flavor with sugarcane juice like pineapple, mango ect most of them disagree. These two questions gave us conflicting information. We found a correlation , the r value less than 5. therefore we can say it is negatively related. The regression model is estimated using the data from the estimation sample only. This model is compared to the model estimated on the entire sample to determine the agreement in terms of the signs and magnitudes of the partial regression coefficients. attributes Brand Taste flavor price packaging Total Responses(segment 1) 12 6 7 18 7 50 Responses(segment2) 17 12 9 7 5 50
The table above shows the measurement scale of the two different segment of people giving the consideration of attributes before buying any drink. One segment was the university students. Others were the people of different occupations
Recommendations & Findings
By doing all of the required analysis of the data we have come to conclusion which are given below.
Young people are enthusiastic about the launch of any new natural or carbonated drinks. They are usually willing to try out the newly launched product. Outside the home most of the people prefer soft drinks or mineral water as a drink. Most people by default try out new drinks at least once provided that they are aware of it. Brand name is one of the most important attribute the look for while purchasing and positive word of mouth. For low income and people with less social involvement price is a big factor. Pricing depends on the competitors. How much do they charge for similar products. Availability of the product insures grater sale. Because people do not usually give much effort in terms of product like beverage, they rather go and pick up in between a few popular brands. POP strategy sometime works great. Hygine level,health factors are not always given importance. General people usually do not know about the difference between the natural and carbonated drinks or drinks with preservatives There are high expectations and high market potential of bottled sugarcane juice While few people consider it as a summer drink, but most of the pespondents think it is as good in other seasons too. Most preferable size for the bottle would be 250ml, and occationally500ml Price range would be not more than 15tk for 250ml. however 500ml bottle wpuld be 25tk. The expected price of the people changes as their income, lifestyle, occupation changes Most of the people would like to purchase a bottle of sugarcane juice form a convenience shop.
Sugar can juice is a very safe and refreshing drink. It is one of the purest, most nutritious wholesome waters and beverages with which nature has provided us. People take out the juice directly from the sugar cane. Bottled sugar cane juice can fulfill the peoples need. In many countries there are several companies those who produced bottled sugar cane juice
with its pure taste. In Bangladesh there is a huge prospect of bottled that we found by doing a research.
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