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SUBMITTED TO, SIR YAWAR ABBAS SUBMITTED BY,
NAMES MUHAMMAD SHAHNAWAZ
Reg. # 2008-Ag-43
MBA (Reg) 4th SEMESTER
DEPARTMENT OF BUSINESS MANAGEMENT SCIENCES
Countless thanks to ALLAH Almighty for giving us such extraordinary abilities and making us privileged enough to take part in such activities and all respects and regards to Holy Prophet Hazrat Muhammad (PBUH) for giving us the faith paving us on the right path with the essence of faith in GOD. We would like to thank our Supervisor Mr. Yawar Abbas for his cooperation and help. He fully supported us throughout our work. We express our heartiest gratitude to him. His cooperation made this project a lot much easier.. We also express our profound gratitude to ALL OUR Friends who supported us a lot not during this project but through out the whole semester. Finally, we wish to record our deepest obligations to our Parents and Family for their prayers and continuous support.
The primary goal of this project is: o To provide the reader (i.e. Investors, Retailers and consumers) with a basic understanding about our product, that is, INSTANT TEA manufactured by GREEN LAND MANUFACTURES a private limited company. o To let them know the features of the product that what are the ingredients of the product and how this tea is different from the others in the market.
Green Land Manufactures Saddar Bazaar Gulam Muhammad Abad 3
Shop number 165, Commercial Market (041) 8862348 www.greenlandmanufactures.com
Description of Business: Green Land Manufacturers is a company which provides a unique product Instant Tea. The Instant Tea is basically a ready to use tea with all the required quality ingredients (tea, powdered milk, and powdered sugar) with different flavors, just put the teabags into the hot water and a refreshing hot tea is ready.
Financing Initial financing requested is Rs 4,000,000 loan to be paid off over ten years. This debt will cover office space, office equipment and suppliers, two leased vans, advertising and selling costs.
This report is confidential and is the property of the co-owner listed above. It is intended for use only persons to whom it is transmitted, and any reproduction or divulgence of any of its contents without the prior written consent of the company is prohibited.
Many Pakistani’s have a perception that not having a cup of tea in the morning will leave a day blank for them, tea one of the most used beverage after water in Pakistan and it is so popular that its nearly impossible to start a day with out a cup of tea. Serving guests with hospitality is that guests are always asked for tea in Pakistan, in offices people always want a tea for refreshment this is explaining how much tea is given importance in Pakistani peoples life. The goal of this business plan is to outline the strategies, tactics, and programs that will make the sales goals outlined in the Green Land Tea Manufactures business plan into reality in the year 2010. Basically there are 9 persons which are going to establish a unique business in Pakistan as entrepreneurs. We needed Rs 10.0 billions to start this business. We have Rs 4.0 billions as owner’s equity and remaining Rs 6.0 billions will get from banks in the shape of loan. Pay back period of our investment is 7.83 years. Capital budgeting showing that our project has a positive net present value and higher internal rate of return than to the market opportunity rate 13%. Green Land Tea Manufactures, unlike a typical company, provides a unique form for taste and high quality tea within no time. The name of the product is Instant Tea. Actually Green Land Tea Manufacturers is the answer to an increasing demand for quality tea in shortest possible time. The instant tea is basically a ready to use tea just put the teabags with all the required quality tea ingredients (tea, powdered milk, and powdered sugar) into the hot water and your refreshing hot tea is ready. We are getting the sugar from the local supplier, for the milk powder we have contracted with 'Everyday' and we are importing tea from Kenya. As a new brand is get underway in the market there are chances of failure so for that we have conducted a market research & from that research we came to know that this product will be a super hit in the market and exactly the customer want this product to come into the market.
Marketing will play a vital role in the success of Green Land Tea Manufacturers. The company will build a brand around the services it offers by heavily promoting itself through local television, radio, and print advertising. Marketing efforts are just beginning by the time a potential customer enters Green Land Tea Manufacturers for the first time. A strong emphasis will be put on keeping customers and building brand loyalty through programs focused on staffing, experience, and customer satisfaction. The basic motive behind every business is to generate profits out of it. We also need profits to manage our needs and growth of the business. We will focus on superior quality as well as reasonable price that customer can afford. Basically the idea behind this company is that think big by thinking small means that we want an entrepreneurial change in the culture of tea. For starting our entrepreneurial activities we have targeted the small part of working class people because this working class has one of the major effects on the economy of the country. For that we are moving with the Motto:
“We are not just asking for your money; but we are anxious about your time”
TABLE OF CONTENTS Introduction to product …………………………………………………..……...9 Vision statement……………………………………………………………........10 Mission statement………………………………………...………….…..….…..10 Situational analysis…………………………………………………………….…11 Environmental analysis……………………………………………………….…..11 Swot analysis……………………………………………………………………..12 Pest analysis………………………………………………………………………13 Competitors…………………………………………………………………...….14 Direct competitors……………………………………………………………..…14 Indirect competitors…………………………………………………….….……..14 Competitor's analysis…………………………………………………………..….15 Keys to success……………………………………………………………..….….16 Industry analysis……………………………………………………………..……16 Market share picture……………………………………………………….……..17 Future outlook & trends…………………………………………………………...18 Venture description……………………………………………………………..18 Organizational plan ……………………………………………………………….19 Form of business………………………………………………………………….19 Management team………………………………………………………………19 Organizational structure……………………………………………………………21 No of employees……………………………………………………………………22 Check signing authority ……………………………………………………………23 Salaries……………………………………………………………………………..23 Plan to meet personnel needs……………………………………………………….23 Performance management system…………………………………………………23 Roles & responsibilities of members of organizational charts……………………..24 Production plan…………………………………………………………………….29 Operational plan……………………………………………………………………30 Marketing plan analysis…………………………………………………………….33
Marketing mix…………………………………………………………………...…39 Product……………………………………………………………………………..39 Price………………………………………………………………………………..42 Placement…………………………………………………………………………..42 Promotion ………………………………………………………………………....46 Assessment of risk……………………………………………………………..…..47 Financial plan analysis……………………………………………………… ……48 Contingency plan……………………………………………………………….…55 Harvesting strategy………………………………………………………………..55 Appendix …………………………………………………………………………56
INTRODUCTION TO PRODUCT
It is a new product to be launched in the market about which you have never listened and even never thought before. It will be launched and come in the market in year 2010. It is basically a consumer product and is necessity of almost every house and it is usually used in routine in many houses and offices. The name of the product is: “INSTANT TEA”. Instant Tea is manufactured by the GREEN LAND MANUFACTURES. Our tea has special feature that it is prepared within few seconds and all ingredients (tea, powdered milk, and powdered sugar) are combined in a balanced quantity in the Quick Time. It is in the form of teabags. You have to do nothing, just boil water and dip the teabag in that and your delicious tea is prepared in few seconds time. There was never such an easy way to prepare a quality tea that we have made possible
WAS IT DREAM?
We strongly believe in an idea and a vision rather than a dream. What we have always wanted for ourselves, we want this for others as well. We want to make people realize that they can have the quick time making of tea to save their time. We would promote “Healthy & Tasty living”. Instant tea bags will be very proficient for the users and customers as all want something that can be prepared quickly and within a blink of an eye. So we have firm belief that as this product has not been introduced in Pakistan it will have its unique attraction and rare importance among the consumers. The whole idea behind this concept was to introduce new and improved drinking habits of the people.
VISION STATEMENT “We aim to be the market leaders of Tea Industry”
We provide instant flavored tea with all required contents in a tea bag to our time starved customers in urban areas. Our aim is to become market leader in instant tea with our committed employees.
Tea is the cheapest and most popular beverage that is served at both professional and social gatherings all over the world. In Pakistan it is counted as a staple food item of common man and is an integral part of our culture and heritage. Due to these causes Pakistan consumes a substantial quantity of tea. There are many brands like Lipton, Tapal, Supreme etc that are fulfilling the Pakistan’s demand for tea but no one pay attention to that now people are becoming time conscious. They don’t want to waste their time, they want to utilize their time in productive things, here we found a gap so keeping in view this need of our customers on which no one is paying attention we are going to provide tea in the form of tea bags that will be proficient for the customers and the users as all want some thing being prepared quickly with in blink of an eye.
We have conducted the SWOT and PEST analysis that what kind of situation we are going to face when we launch our product. By knowing that what our strength and weakness and with help of that we can convert the threats into opportunities. Also we conducted PEST analysis to know the political, economical, and social & technological situation in the country.
SWOT ANALYSIS The SWOT analysis provides us with an opportunity to examine the internal strengths and weaknesses we must address. It also allows us to examine the opportunities presented to the company as well as potential threats. STRENGTHS: i. Strong Partners; All of our business partners are knowledgeable, friendly and strong. Also our suppliers such as EVERYDAY very strong and supportive to us. All are committed to enhance the quality of product with their support and hard work. ii. Clear Vision of the Market Need; Green Land Manufacturers clearly know the need of their customers and they aim at satisfying their customers in best possible way. iii. Easy Changes in Strategies; As we are engaged in a small business unit so it is our strength that we can change our strategies with changing mood of the environment. iv. Unique Product; We have no direct competitors in the market because we are the first movers and introducing a unique product. WEAKNESSES: i. Low Capital: We don’t have much capital to fiancé our business and it is one of our weaknesses. ii. Dependence on Quickly Changing Technology: This is the era of rapidly advancements in the technology that is bought only with huge capital and in start we would have low capital to spend on that.
OPPORTUNITIES: i. Growing Population of Daily Tea Users: Now-a-day, tea has almost a necessity of every individual. As the population of daily tea users increases, we have an opportunity to capture more of the market share. ii. Stable Industry: Tea industries comparatively a stable industry as compared to other industries. So our product has opportunity to grow in the market and we can make huge profits out of it. THREATS: Cheap Technology: As the technology is being getting cheap and cheap day by day it is possible that in future we might have number of competitors.
PEST analysis tells us about political, economic, social and technological effects faced by our product in the market. Political Effect: The Government policies regarding the business class in Pakistan and regarding other matters may affect our business too. But we do not expect that we would have many problems regarding political conditions in Pakistan. Economical Effect: Our teabags formed tea would not be much expensive for our customers and would be sold at affordable price. It will also be economic for us as manufacturers because we would be able to make it on lower cost and sell on high price and will gain profits for us as well.
Social Effects: We may face certain problems regarding the people’s response to our product. In this region the people are conservative and loyal with their already using brand, not want changes in their lives. So, it will effect or difficult for people to change their traditional taste of tea with a newly emerged tea. But we shall formulate the strategies to overcome their problems and make the people addicted to our product. Technological Effects: We don’t require high technology to prepare this tea. So, technology factor will not effect as much as in other industries. But one threat we face is that there are big giants sitting in the market like Lipton, Tapal and Supreme etc. as technology is going on cheaper and cheaper day by day, so, they can make a prodct like us in the future and our sales may deteriorate.
Direct Competitors: We have no direct competitors in the market because we are the first movers and introducing a new product. Indirect Competitors: Our indirect competitor’s brand names are: Lipton Tapal Tea Lemon Grass Tea
Citron Slimming Tea Pepsi Cola, Miranda Coca Cola, Sprite, Fanta Shezan Jucies and bottles Haleeb Condensed Lassee Nescafe Coffee
Competitor’s Strength: i. ii. iii. iv. They are in the market since long time. They have created an image in the market. They have huge capital to do every thing they want. They have plenty of brand loyal customers.
Competitor’s Weaknesses: i. ii. iii. They engaged in huge business so can’t change strategies early. They can’t get the feed back from customers directly. Can’t easily cope with changing environment and trends.
Opportunities for us: i. ii. iii. We are engaged in small business can easily change our strategies on early stages. We get direct feed back from customers. Can cope with changing environment and trends.
KEYS TO SUCCESS
The keys to the success for Green Land Tea Manufacturers are: • • • • The creation of a unique, innovative, upscale tea that will differentiate us from other local and future tea competitive companies. The establishment of Green Land Tea Manufacturers as a community hub for socialization and entertainment. High quality tea within a few seconds. Educating the consumer about a unique idea.
Tea is the most popular beverage in many countries. More than 2.60 billion kilograms of tea are produced annually in the world. There are three main kinds of tea, i.e. black, green and olong. But generally black tea is liked and all tea producing countries manufacture black tea. In Pakistan, Pakistan is not a tea producing country but is an important consuming country, being the third largest importer of tea in the world and therefore of considerable interest to the main tea exporting countries.
The consumption of tea is about 175 million Kilograms, but custom statistics show tea import of 105 million kilograms. According to the estimates, 70 million kilograms tea is being smuggled in Pakistan through illegal channels. Of the tea sold in Pakistan, 55% is unbranded or in loose form. 85% of this is based on smuggled tea. The players in the remaining 45% segment are Unilever, Tapal, Vital, and Tetley.
MARKET SHARE PICTURE
Our main focus is on organized tea market. Where different companies like UNILEVER and TAPAL are holding the main market share. Some other companies also present in the market but having very low share of the market.
• • • • •
Unilever Pakistan limited has 43% market share. Tapal private limited has 41% market share. Vital tea limited has 6% market share. Tetley has 4% market share The remaining 6% belongs to other market share in the organized market.
45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Unilever Tapal Vital Tetley Others
Unorganized market also captures a good market share in the total tea market of Pakistan. 55% is of unorganized tea.71% of total population of Pakistan are living in rural areas. Due to illiteracy and lack of awareness they are consuming unorganized tea which is mainly affecting the organized tea market. Due to this they are enjoying a very big market share of the total tea market. Organized segment mainly depend on the imported tea. Mainly big players are importing tea from different countries like Kenya, UK, and Bangladesh
Future Outlook & Trends:
Tea industry is a growing industry in the world. In the most countries like Pakistan, the tea is use as a second most popular beverage after water. But the market for quality tea has unlimited upside potential for tea drinkers in this country. The market for high quality tea is experiencing strong growth and this is expected to continue for foreseeable future. The growth of revenue and profits for tea companies is very strong popularly.
Green Land Tea Manufactures, unlike a typical company, provides a unique form for taste and high quality tea within no time. Green Land Manufacturers is the answer to an increasing demand for quality tea in shortest time. Product: “Instant Tea” The Instant Tea is basically a ready to use tea with all the required quality ingredients (tea, powdered milk, powdered sugar) with different flavors, just put the teabags into the hot water and your refreshing hot tea is ready. Size of Business: We would start of our business at a normal scale so that in the start we will be able to know market circumstances and reactions shown by customers. Giving the customers what they want and they will dig deep into the packets. We don’t want to crash into the market but we will slowly grow through word-of- mouth and other means.
Background of Entrepreneurs:
We are basically 9 ambitious persons to start this venture, each person would participate in particular area to run this enterprises and to provide finances for the purpose. A brief introduction the entrepreneurs involved in establishing Green Land Manufactures is as follows: M. Yaseen Tahir: He is an extrovert person with a special quality to convince people, he is just to complete his Master in Business Administration with major in Finance. M. Rafique : He has good analytical skill and sense of humor. He is also about to complete Master in Business Administration with major in Finance. Majid Ali: With good speaking style, he is near to get is his degree of Master in Business Administration with major in marketing. Irfan Yasin: An introvert person, presently doing MBA in marketing. Asma Ramzan: Doing MBA in HRM form University of Agriculture, Faisalabad. She has good management skills, and is responsible to design management plan for Green Land Manufactures. Amber Gill: She is exciting lady, doing MBA in HRM form University of Agriculture, Faisalabad. She loves to work in groups and teams. Amber has been assigned the responsibilities of designing the management plan for our organization. Maria Ali: She is currently doing Master in Business Administration with major in finance from UAF. Maria got good financial knowledge, and she is capable of handling multiple tasks at the same time. Noor Tanveer: Belongs to a family of business graduates, she got good concepts of business management studies. She has been given, along with the Maria Ali, the responsibility of designing operational plan for our venture. Ayesha Nawazish: With good problem solving attitude, she is just to complete Masters in Business Administration with major in HRM. She is obliged with the responsibility of designing vision, mission and conducting industrial analysis for our venture.
FORM OF BUSINESS: • • • • • We have formed a Partnership business. We are 9 partners with equal rights and shares. Responsibilities of each partner are with respect to their specializations. It would be registered partnership. Our liabilities and responsibilities would be the same and will work as a unit.
The Overall Management Team
CHIEF EXECUTIVE OFFICER VICE PRESIDENT MANAGER MARKETING MANAGER FINANCE MANAGER PRODUCTION & QUALITY MANAGER HR MANAGER IT MANAGER R&D
Mr. Mohammad Yasin Tahir Miss. Asma Ramzan Mr. Majid Ali Mr. Mohammad Rafique Miss. Maria Ali Miss. Amber Gill Miss. Noor Tanveer Miss. Ayesha Nawazish
Mr. Irfan yasin
CHIEF EXECUTIVE OFFICER
PRODUCTION & QUALITY MANAGER
Clerical staffACCOUNTANTS, TYPIST, CLERKS & ASSISTANTS
Non-Clerical staff: GURADS, MESSENGERS
NO OF EMPLOYEES
o o o o o o o o o o o o o o o o
CEO Vice President 1 Finance manager 1 HR manager 1 Sales manager 1 Marketing manager 1 R&D Manager 1 Production & Quality Manager 1 IT Manager 5 Salesmen 1 Cost Accountant 2 Drivers 2 Guards 2 Sweepers 12 Labors 2 Peon
Total Employees= 35
Check-signing authority: Check-signing authority is given to Mr. M. Rafique (the Finance Manager)
Salaries: In order to free up enough capital to continue operations and possible expansion, our executive team will not receive more than a living wage salary until the product is well into the black. We understand that as a new product we will need technical support and legal advice; this will be currently outsourced to various consultants.
Plan to Meet Personnel Needs: All sales for the first year of operation will be closed by the executive management team. Starting from the second year, we will employ a Sales Associate who will handle sales transactions. His/her compensation will be a combination of fixed salary and commission on sales. For the purposes of financial planning, we combined the Sales Associate's compensation into an aggregate forecast. To be flexible in meeting the customer demand, we plan to stock a minimum amount of product in a rented warehouse. At the beginning, all incoming product stock will be accepted and later dispatched to customers by the company's executive team. Starting in the second year, we plan to hire a full-time Inventory Manager to handle these tasks.
Performance Appraisal System: Performance of the employees is continuously observed on daily basis. Employees are appraised on weekly basis. Their appraisals send to the main head office. According to the head office recommendations employees are rewarded.
ROLES AND RESPONSIBILITIES OF MEMBERS OF ORGANIZATIONAL CHART
CHIEF EXECUTIVE OFFICER (CEO)
Major Functions: • • To implement the strategic goals and objectives of the organization To give direction and leadership toward the achievement of the organization's philosophy, mission, strategy, and its annual goals and objectives
Reports to: Board of Directors 1. Board Administration and Support -- Supports operations and administration of Board by advising and informing Board members, interfacing between Board and staff, and supporting Board's evaluation of chief executive 2. Program, Product and Service Delivery -- Oversees design, marketing, promotion, delivery and quality of programs, products and services 3. Financial, Tax, Risk and Facilities Management -- Recommends yearly budget for Board approval and prudently manage organization's resources within those budget guidelines according to current laws and regulations 4. Human Resource Management -- Effectively manages the human resources of the organization according to authorized personnel policies and procedures that fully conform to current laws and regulations 5. Community and Public Relations -- Assures the organization and its mission, programs, products and services are consistently presented in strong, positive image to relevant stakeholders
6. Fundraising (nonprofit-specific) -- Oversees fundraising planning and implementation, including identifying resource requirements, researching funding
sources, establishing strategies to approach funders, submitting proposals and administrating fundraising records and documentation
Job Description: To provide provides strategic leadership for the development of the service line so that a full continuum of services is created and structured in response to customer needs (patient, payer, physician). The vice president will guide the development of the overall leadership structure and strategic plan and create goals and plans for quality and financial management of the service line.
PRODUCTION & QUALITY MANAGER Develop and implement quality management strategy and plans, including resource, systems, timescales, financials, to support, contribute to, and integrate within, the organization’s annual business plan and long term strategy. Develop and maintain systems to establish standards relating to activities and products. Develop and maintain systems to measure performance against established standards. Monitor performance (in relevant areas) according to agreed standards and take necessary action to communicate/advise/assist according to performance levels. Monitor and inform/communicate/apply standards created/maintained by external bodies, and integrate within internal quality management systems.
MARKETING MANAGER Main Job Tasks and Responsibilities: 26
o manage and coordinate all marketing, advertising and promotional staff and activities o conduct market research to determine market requirements for existing and future products o analysis of customer research, current market conditions and competitor information o develop and implement marketing plans and projects for new and existing products o manage the productivity of the marketing plans and projects o monitor, review and report on all marketing activity and results o determine and manage the marketing budget o deliver marketing activity within agreed budget o develop pricing strategy o liaison with media and advertising FINANCE MANAGER Typical activities include: o providing and interpreting financial information; o monitoring and interpreting cash flows and predicting future trends; o analysing change and advising accordingly; o formulating strategic and long-term business plans; o analysing competitors and market trends; o developing financial management mechanisms that minimise financial risk; o conducting reviews and evaluations for cost-reduction opportunities; o liaising with auditors to ensure annual monitoring is carried out; o arranging new sources of finance for a company's debt facilities; supervising staff; o Keeping abreast of changes in financial regulations and legislation. SALES MANAGER 27
Main Job Tasks and Responsibilities: o Resolve customer complaints regarding sales and service. o Monitor customer preferences to determine focus of sales efforts. o Direct and coordinate activities involving sales of manufactured products, services, commodities, real estate or other subjects of sale. o Determine price schedules and discount rates. o Confer or consult with department heads to plan advertising services and to secure information on equipment and customer specifications. o Advise dealers and distributors on policies and operating procedures to ensure functional effectiveness of business. o Prepare budgets and approve budget expenditures. o Represent company at trade association meetings to promote products. o Plan and direct staffing, training, and performance evaluations to develop and control sales and service programs. RESEARCH & DEVELOPMENT MANAGER General tasks include: o To monitor and evaluate project research activities o To supervise field staff activities and ensure all reporting requirements are adhered to, o To promote company and project activities and capability to potential collaborators, sponsors, partners, academic institutions and the scientific community, o o To identify sponsorship and grant opportunities and liaise with existing To prepare proposals for donor funding and sub-contracts in collaboration and potential donors with overseas partners and overseas paid staff o To oversee, renew and develop in-country collaborations o To oversee dissertation students at under-graduate and post-graduate level HUMAN RESOURCE MANAGER
Duties and Responsibilities: o Administer compensation, benefits and performance management systems, and safety and recreation programs. o Identify staff vacancies and recruit, interview and select applicants. o Provide current and prospective employees with information about policies, job duties, working conditions, wages, and opportunities for promotion and employee benefits. o Analyze and modify compensation and benefits policies to establish competitive programs and ensure compliance with legal requirements. o Serve as a link between management and employees by handling questions, interpreting and administering contracts and helping resolve work-related problems. o Analyze training needs to design employee development, language training and health and safety programs. o Maintain records and compile statistical reports concerning personnel-related data such as hires, transfers, performance appraisals, and absenteeism rates. o Prepare personnel forecast to project employment needs. o Prepare and follow budgets for personnel operations IT MANAGER JOB DESCRIPTION
o Assists in the planning and implementation of additions, deletions and major modifications to the supporting regional infrastructure. o Implements network security at the regional level
o Oversees the administration of the company's WAN. o Interacts with internal clients on all levels to help resolve IT-related issues and provides answers in a timely manner. o Builds and maintains vendor relationships and manages the purchase of hardware and software products. o Manages the purchasing of all software, hardware and other IT supplies at the regional level. o Ensures that company assets are maintained responsibly. 29
Plant and Machinery Required: • • • • • • • Distillatory, Rotary evaporator Vacuum dryer, Grander, Freeze dryer, Colorimeter, Water activity meter
Major Suppliers: We are getting the sugar from Local supplier, for milk powder we have contracted with Everyday and we are importing tea from Kenya.
SUPPLIERS FOR TEA FOR SUGAR
NAMES Mr. JEFF KARANJA Mr. Abid Awan Mr. Shakeel Butt
ADDRESS Kenya Faisalabad Faisalabad Faisalabad Faisalabad
Mr. Zeeshan malik Mr. Tauqeer Ahmed
The following section will identify the proposed operational plan for “Green land Manufacturers”. Included are the general operating procedures, human resources, insurance and an outline of Green land Manufacturers' operational workflow.
General Operating Hours
Green land Manufacturers intends to operate whole week from 9 am to 8pm. It will be operational year around.
Our company has 35 employees as a part of its management including the top management. When additional human resources are needed, Green land Manufacturers has identified the persons qualified and able to assist on a contract basis.Job advertisements will be put in the local papers and organizations to attract a good pool of respondents.
Green land Manufacturers will have to incur costs for business liability insurance. The estimated cost for this requirement is Rs. 100,000 per year
Step 1: Green land Manufacturers, will first of all procure all required items from different suppliers: Main suppliers of milk will include: • • • • • Mr. Zeeshan Malik (Faisalabad) Mr. Tauqeer Ahmad (Islamabad)
The supplier of tea will include: Mr. JEFF KARANJA (Kenya)
The supplier of sugar will include: Mr. Abid Awan (Faisalabad) Mr. Shakeel Butt (Faisalabad)
Step 2: To provide customers with healthy product, Green land Manufacturers has arranged the preservation of necessary items. The process of treating and handling product is to stop or greatly slow down spoilage (loss of quality). Common methods that will be used for preservation includes: • • • • • • Drying, Spray drying, Freeze drying, Freezing, Vacuum-packing, Canning, etc. etc.
These methods help to preserve and to add flavors. Step 3: Green land Manufacturers pack all the items in attractive packing: • • • Tea Bags Boxes Wrappers
It will be used as packaging material. It provides protection against tampering resistance, and special physical, chemical effects. It also shows nutrition information on the product being consumed. • • Physical protection, Convenience,
are the Main Objectives of packaging Step 4: After the completion of 3rd step items will be sold to customer with the help of our distribution channel Step 5: As feed back is necessary for success of any business venture so Green Land Manufacturers also will arrange the Response section for its customers. Customer representatives compensate accordingly, like expired items will be replaced.
The above operational workflow is very standard, easy to understand and within industry's norm. The graphical presentation of the “OPERATIONAL PLAN” is given below
Milk Sugar Tea
Freezing, Drying, & preserve.
(Collection of Items)
Used To Stop Spoilage & Bacteria And To Maintain The freshness.
Tea Bags, Boxes, cartons, wrappers.
It Provides Physical Protection & Labels Are Act As Information transmission.
(Through distributio n channel)
Response Centre Receives feedback from customers
MARKETING PLAN ANALYSIS
MARKETING GOALS: To create a strong consumer value, To establish a wide brand recognition through the capture of market shares in the To become the top market leader in that particular segment with the strong
multi segment, and research and development. MARKET RESEARCH As we are launching a new brand in the market there are chances of failure so for that we have conducted a market research, prepared a QUESTIONNAIR and we went in the certain offices and in certain locations to gather information about the responses of the people about our product. We went into the UNIVERSTIES, PROPERTY DEALERS OFFICES, and BANKS and in certain other locations for that we also took personal interviews of the people in the certain markets and offices to get the information about the customers’ response at our own. QUESTIONNAIRE 1. What type of hot drink you use very often? Tea Coffee Both None 3 minutes 5 minutes. More than 5 minutes. 34
2. How much time you take in preparation of tea?
3. What would be your reaction if the tea be prepared in few seconds? Like such a tea. Don’t like such a tea No idea
4. Would you like to switch on to another brand of tea if new brand provides better taste with easy and time saving preparation? Yes No 1 cup 2 cups 3 cups More than 3 cups Strong Medium Light Taste Brand name Availability Taste Brand Price Quality
5. How many cups of tea you usually take in a day?
6. What is your taste in tea?
7. What do you consider the most while choosing your tea?
8. To which attribute you give more importance?
9. If a tea is introduced in the teabag form where you just have to dip that in hot water and tea is ready what will be your response? Will buy such a tea 35
Won’t buy such a tea No idea
10. If a tea is introduced in the teabag form with different flavors like chocolate, strawberry, mango etc then what will be your response? Like such a tea. Don’t like such a tea
No idea 11. According to you, what medium should a Tea Company use more frequently to advertise itself? Television Billboards Newspaper Radio Fashion or Business Magazines Others________________ 15,000-20,000 20,000-25,000 25,000-35,000 Above 35,000 Dependent Children Young Middle Age Old people Male Female
12. Income per annum?
13. In which category you stand?
15. Occupation 36
Households Property dealers-other offices Students
RESULT OF QUESTIONNAIRE
o We found a positive response from everywhere in the market as well as in the offices. o Everyone was found eager to welcome this new idea and product. People are short of time and it is not less than a gift in their busy routine lives. o Especially office workers were in need of such product which is prepared in just no time. o People are ready to pay more for quality products. o They literally said to us that we were in the need of such a product to come in the market. 37
Based on three bases: Demographic. Psychographic. Behavioral Style
Age Gender Family Size Family Life Cycle Income Occupation Above 18 Male and Female Average Young Rs. 20,000 and above Professional, Managers, Students, Clerks etc
Social Class: Life Cycle: Personality Working Class, Upper Middle, Lower Upper, Upper Fast, Struggle, Always short of time. High Society, Ambitious
Occupations Benefits User Status Regular Occupation Quality and Time Consuming Regular User
Readiness Stage Attitude towards Product
Intending to buy Positive
TARGET MARKET Green Land Manufacturers customers can be divided into three groups.
The first group is familiar with the quick time concept and desires a progressive and inviting atmosphere with their offices and workplace where they can enjoy a delicious cup of tea with in few seconds. This group is made up of business people from different offices and professional centers means people in Corporate Level.
The second group is not familiar with quick time tea concept. This group is made up of seniors from the different retirement centers. Seniors represent a growing segment of tea users. They use the tea with friends and family and they will be regular users of the Instant Tea.
The third group is somehow familiar with this concept. This group is made up of students. They represent the young segment of tea users. They use the tea during their studies to refresh themselves and they will be regular users of the Instant Tea.
SIZE OF MARKET:
On the basis of our research and on demographic studies conducted in the city of Faisalabad, about 15,000 people our target market in first year then 16500 in the 2nd year (10% increase) and in third year 18150. This would consist of individuals between the ages of 28 and 65, male and female, with high disposable income, employed as professional businesspersons or office staff.
There is a potential to reach an additional customers who work on the fringe of this area and may not directly pass our office on a regular basis. This secondary market may be penetrated through advertising, word of mouth and distribution of marketing literature. Positioning Statement For busy, mobile people whose time is already at a premium, but desire a refreshing, high quality beverage. Positioning: “Time Saving”
We have focused also on 4 P’s of marketing in our project to launch new tea. 4 P’s mean a mix of: PRODUCT PRICE PLACEMENT PROMOTION
Tea bags including all needed quality tea ingredients which includes world class tea leaves, fresh milk powder, moderate sugar and different flavors. Product Line Length: In start our product line will include:
With high sugar and milk
Regular With light sugar and milk With Canderal
Slogan: “Ready when you want” Brand Association: “Princess Fairy Cartoons” Logo:
Tea in the form of teabags that is ready to take form with good and attractive packing. Primary Packing; Secondary Packing; Poly Tea Bags Box
Ingredients: Kenya Danedar Tea. Every Day Dry Milk Powdered Sugar. Powdered Canderal Recipe of tea: Bring 100ml water boil. Put 1 teabag in a cup. Pour boiled water into the cup. 42
Allow infusion for 2-3 minutes. After 2-3 minutes, dip tea gag in the cup 8-10 times and your tea will be ready. Instant tea made from 4.3 grams of tea, 10 grams of milk and 2.7 grams sugar in 100ml of fresh boiling water. Nutritional Information: Calories: Total Fat: Carbohydrates: Protein: Instructions: Store in a cool dry place away from direct sunlight. Date of MFG & Date of EXP Contact: www.greenlandmanufacturs.com 73 2.4g 12g 1g
PRICE OF THE PRODUCT: Price per teabag is Rs.10 whereas,
Price per Box is Rs.300 (contains 30 teabags) PRICE PER TEA BAG: Packing price per tea bag Rs. 0.50 Price of tea (4.3 grams) Rs. 1.00 Price of powder milk (10 grams) Rs. 1.50 Price of powders sugar (2.7 grams) Rs. 1.00 Total cost: Rs. 4.00 Gross Profit per teabag: Rs. 6.00 Retail price: Rs.10.00
Pricing Strategy The pricing will be comparable to the competition, but with the value-added feature of immediate, drive-thru service and convenience
PLACEMENT OF PRODUCT
Location: We have chosen the location for our business in the Faisalabad. In Faisalabad the shop number is 55/C Batala Colony main road and in Shaheen Chok Saddar Bazaar Gulam Muhammad Abad the shop number is 165 Commercial Market. Both shop size is of 20 by 20. This is enough for us to store our imported material and to use it as sales outlet initially.
Placement is the 4th element or ‘P’ in the four Ps of the marketing and it is very important as it helps the businessman to bring product into the market. Also it is very difficult decision to select an appropriate location. We have also worked on this element.
Manufacturer ------ Distributor--------- Retailers--------- Consumer
As Every Day is our partner, they supplied as powdered milk so we can also use their distribution channel and has an agreement with the different distributors to deliver our products to the final customers. Our distributors are focusing on the areas where there are opportunities like bank square, commercial zones, small companies etc with in Faisalabad. We are targeting these areas because our most of the target market is the working class. The areas which the distributors are covering are as under: D-Ground Faisalabad Rail Bazaar Faisalabad D type Colony Faisalabad Millat town Faisalabad Now the question comes that how our distribution channel works. Firstly we assemble the product which we get from our source like tea, milk powder and sugar in the bulk to our distributors. Then the order is placed by the customers to the distributors about their required demand. After that the distributors set the order according to customers required demand. We will use several distribution channels according to the need of the time and nature of the market. Whenever we will enhance our distribution channel it will also increase our cost on the sale of the product as we will have to pay several. Intermediates involved in the process of the distribution. So, we will keep our distribution cannel simpler in the start of our business. But as certain Offices are our target market, that’s why, our representative distributors will continuously make delivery in the banks and other offices. We will hire such a
person for this job who would have relationships in certain offices and who can convince them to use our product. In start of our business we will open our business outlet store in the almost centre of Islamabad and Rawalpindi where the imported tea and powdered milk will be stored and after the filling and packing process our tea would also be sold over there initially. At this initial stage our distribution channel would be as:
Distribution Strategy Our representative distributors will continuously make delivery in the banks and other offices in the city
We believe that it is not enough to have good products just sold at attractive prices. To generate sales and profits, the benefits of products have to be communicated to customers. Our Promotional Mix will be based on the following things: Web promotion. Advertisement. Billboards. Newspapers. Broachers and Posters. Cloth Banners.
Among all of these blends of promotional mix we will be focusing at most on the Advertising blend. Other blends will be used whenever we would find any situation in which they might be helpful to us.
OBJECTIVES OF PROMOTION We will have several objectives of promotion which we will use to make our product accepted. Those objectives might be: To Inform: As we are launching a new product in the market so we will promote our product in a way that our customer might know about our product to be existed in the market
Persuade: We will create a perception about our product in the minds of the customer that our product is superior to the products currently available in the market. Image Creation: By promotion we will create an image in minds of the customer that our product is different than others in the market. Reassurance: We will also promote to make customer reassure that he/she has made right decision to buy our product. We might use several blends of the promotional mix while creating my promotional strategies like direct selling, advertising, sales promotion etc. Advertising: Through advertising we will try to deliver our most persuasive possible selling message to the right audience at minimal cost we can have. PROMOTIONAL MIX
PROMOTION MIX Promotional Mix will be based on these elements as discussed under: Word Of Mouth: It is a personal communication about product between target buyers and neighbors, friends, family members and associates. It is a very effective strategy in which we plan to use word of mouth to introduce our product and also the benefits of our product to the customers. Advertising: We will use advertising to communicate our product into the market through "prime media": i.e. television, newspapers, magazines, billboard posters, radio, etc. Our advertising would be intended to persuade and to inform. Direct Marketing: Through direct marketing we shall create direct relationship between us and our customers. Personal Selling: We will also use personal selling technique to make our product sell. For that we will hire people on commission who will communicate with people and try to manage sale of our product. Sales Promotion: We will offer certain incentives to our customers to increase the sales volume of our business such as coupons, extra quantity etc.
RISK ASSESSMENT Green Land Manufacturers although free from any direct competition, has a very low barrier to entry. But there are certain risks which can affect the overall value of a business. In order to ensure that a current business owner receives the best value for their company, it is important to take certain steps to avoid sale delays, obtain the necessary resources to help the sales process along and retain the help of knowledgeable professionals in areas where they are needed. Financial Risk Risk which affects the overall value of a business with regard to the sale thereof has a lot to do with the lack of resources. Unlike corporate counterparts, smaller business owners do not have attorneys, accountants and financial advisors at the back and call who can aid them in the sale of the business. Competitors: Possible Competitors are global leaders so they have more technology as compared to us. Management Team Conflicts: There may be conflicts due to so many people in the management. People Risk: In the future may be the trend and demand of the consumer changes. Technological Risk: This is the era of rapidly advancements in the technology as the technology is being getting cheap and cheap day by day it is possible that in future we might have number of competitors.
FINANCIAL PLAN ANALYSIS
IMPORTANT FACTORS FOR THE PROJECTION Sales are the most dominant fact in the construction of the financial statements. Our sale is Rs.84496165 in the 1st year and it is calculated on the basis of following factors. • • • • • On the basis of previously designed marketing plan. Stable environment of tea industry. On the basis of our prices. On the basis of advertisement and product promotion. Market research study.
As on June 30, 2010-12
ASSUMPTIONS • • • • • • Financing needed is 1,000,000 PkR of which 0.6 Million PKR is personal financing and 0.4 Million PKR is Debt Equity. We have 35 employees & total compensation paid to them will be 450,000. In 2nd & 3rd year, the sales are expected to grow 10% per year. The aggregate cost of goods sold is assumed to be 40% of the sales. Fire insurance policy amounted to 100000 will be taken for safety purposes. Interest on bank loan will be paid every month & interest rate is assumed to 8%
2010 Rupees CAPITAL AND RESERVES Share Capital 60,00,000
CURRENT LIABILITIES Electricity bills outstanding Outstanding salaries Accounts payable Provision for taxation Rent outstanding Short Term loans 100,000 4,50,000 7,00,000 125,000 1,25,000 1,10,000 4,95,,000 7,70,000 1,37,500 1,37,500 3,30,000 1,21,000 5,44,500 8,47,000 1,51,250 1,51,250 3,63,000
2010 Rupees NON-CURRENT ASSETS Property, plant and equipments DEFERRED COST Advertisement Registration fees 5,20,000 4,80,000 84,00,000
Stock Advances and receivables Cash and bank balances
For the Period ended June 30, 2009-11
Sales Cost of Sales Gross Profit Admin & selling expenses Rent Insurance Profit Before Tax and Interest Finance Cost Profit / (loss)
33,00,000 15,97,200 17,02,800 1,50,000 1,25,000 1,00,000 13,27,800 3,20,000 10,07,800
36,30,000 17,56,920 18,73,080 1,65,000 1,37,500 1,10,000 14,60,580 3,52,000 11,08,580
39,93,000 19,32,612 20,60,388 1,81,500 1,51,250 1,21,000 16,06,638 3,87,200 12,19,438
Taxation Profit / (loss) after taxation
Accumulated profit carried forward
Cash Flow Statement (projected)
For the period ended June 30, 2009
CASH FLOW FROM OPERATING ACTIVITIES Profit / (loss) before taxation Adjustments for: Depreciation Finance cost 00 000 18,27, 800 Changes in working capital (Increase)/decrease in current assets: Stock and stores Advances and receivables Increase/(decrease) in current liabilities: 10,0 7,800 5,00,0 3,20,
Accrued and other liabilities ,000
180 (30 0,000)
Cash generated from (used in) operations Payments for: Finance cost Income tax Net cash inflow/(outflow) from operating activities CASH FLOW FROM INVESTING ACTIVITIES
(3,20 ,000) (1,07 8,00) 4,27, 800
Fixed capital expenditure
Preliminary expenses Net cash inflow/(outflow) from investing activities CASH FLOW FROM FINANCING ACTIVITIES Long-term finances Share Capital Net cash inflow/(outflow) from financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at beginning of the year Cash and cash equivalents at end of the year
(10,00,0 00) (57,62,50 0)
40,00 ,000 60,00, 000 1,000, 000 780,000 (5,00 ,000) 11, 22,000
Statement of Changes in Equity (projected)
For the period ended June 30, 2009
Share capital Rupees Accumulated profit / (loss) Rupees Total
Balance as on July 1, 2008 Net profit for the year ended June 30, 2008 Balance as at June 30, 2009
PROFITABILITY RATIOS Gross Margin% (Gross Profit / Net Sales) Net Margin % (Net Profit / Net Sales) Return on Assets% (Net Profit / Total Assets) Return on Equity% (Net Profit / Equity) 51.6% 27.2% 7.69% 13.04%
ACTIVITY RATIOS Inventory turnover (Cost of Goods Sold / Inventory) Receivable turnover (Sales / Account Receivable) 0.7986times 11.78
Payables turnover (Cost of Goods Slod / Accounts Payables) Assets Turnover (Net Sales / Total Assets) Fixed Assets Turnover (Net Sales / Fixed Assets) LIQUIDITY RATIOS Working Capital (Current Assets - Current Liabilities) 000 Current Ratio (Current Assets / Current Liabilities) Quick Ratio (Current assets less Inventory & Prepayments / Current Liabilities) Cash Ratio (Cash+Marketables Securities / Current Liabilities) LEVERAGE RATIOS Debt to equity ratio (Total Debt / Total Equity) Debt to capital employed (Total debt / Total assets)
8.8 25.98% 0.38
15,00, 1.83 0.723 0.57
Capital budgeting for 15 years
• Initial investment = Rs. 10 millions
• Discount Rate = 13%
n = 3 years
It is assume that cash flows will increase by 10% every year.
Y as er 21 00 21 01 21 02 21 03 21 04 21 05 21 06 21 07 21 08 21 09 22 00 22 01 22 02 22 03 22 04 22 05
Cs F w a h lo s 900 000 900 900 1800 090 1990 170 1160 379 1449 495 1944 0 5 4 0 .9 1585 9 7 3 4 .3 1229 3 9 9 2 .9 2212 2 1 2 5 .9 2338 1 3 4 6 .2 2685 4 5 7 0 .0 2255 4 8 4 8 .5 3004 9 1 7 4 .0 3178 0 4 7 4 .5 3553 5 7 9 2 .3
D c u ta 1 % is o n t 3 0 80 .8 5 0 82 .7 3 0 92 .6 3 0 14 .6 3 0 49 .5 2 0 85 .4 0 0 22 .4 5 0 73 .3 6 0 30 .3 3 0 97 .2 4 0 68 .2 0 0 38 .2 0 0 03 .2 4 0 88 .1 0 0 60 .1 0 0 46 .1 1
P e e t V lu r sn a e 7 6 0 .0 950 0 7 5 9 .7 732 5 7 4 4 .8 584 4 7 4 4 .4 381 5 7 5 6 .1 138 6 6 6 1 .9 940 0 6 7 5 .0 796 1 6 9 9 .1 590 8 6 2 0 .4 450 4 6 5 7 .1 244 7 6 8 9 .1 089 1 5 2 6 .2 973 8 5 7 5 .0 705 6 5 1 6 .1 673 0 5 6 7 .3 486 7 5 2 8 .1 334 5 1 4 9 1 .9 0909 7
T t l P e e t V lu oa r s n a e T ta P e e t v lu - In l in e t e t o l r sn a e itia v sm n 1 4 9 1 .9 -1 0 0 0 = 4 9 1 .9 0909 7 0000 909 7 S N Vis P s eP je t is a c p d o P o itiv ro c c e te N t P e e t v lu = e r sn a e IR R Y as er 21 00 21 01 21 02 21 03 21 04 21 05 21 06 21 07 21 08 21 09 22 00 22 01 22 02 22 03 22 04 22 05
Cs F w a h lo s 900 000 900 900 1800 090 1990 170 1160 379 1449 495 1944 0 5 4 0 .9 1585 9 7 3 4 .3 1229 3 9 9 2 .9 2212 2 1 2 5 .9 2338 1 3 4 6 .2 2685 4 5 7 0 .0 2255 4 8 4 8 .5 3004 9 1 7 4 .0 3178 0 4 7 4 .5 3553 5 7 9 2 .3
D c u ta 1 % is o n t 8 0 45 .8 7 0 13 .7 8 0 07 .6 8 0 19 .5 5 0 32 .4 7 0 75 .3 0 0 10 .3 4 0 61 .2 6 0 26 .2 5 0 92 .1 1 0 60 .1 2 0 33 .1 7 0 14 .1 6 0 96 .0 8 0 86 .0 3 0 78 .0 0
P e e t V lu r sn a e 7 2 5 .0 670 0 7 1 7 .6 103 9 6 2 9 .4 688 5 6 7 8 .0 197 8 5 6 1 .4 718 5 5 7 8 .4 306 3 5 0 9 .8 068 2 4 6 7 .4 676 8 4 5 5 .3 312 7 4 5 7 .8 060 0 3 8 8 .6 716 0 3 2 6 .4 554 6 3 8 7 .2 268 2 3 6 1 .2 040 7 2 5 5 .9 860 7 2 6 9 .1 628 2 7901 8 5 4 0 .1
N t P e e t v lu = e r sn a e
T t l P e e t V lu oa r s n a e T ta P e e t v lu - In l in e t e t o l r sn a e itia v sm n 7 9 0 1 8- 1 0 0 0 = (2 0 9 8 2 5 4 0 .1 0000 4 5 9 .8 )
I R L wD c u t ra + ( N V N V N V(H R- L R R = o is o n te H P /H P -L P ) D D) 0 3+ (4 9 1 .9 /4 9 1 + 4 5 9 .8 )( .1 - 0 3 .1 9 0 9 7 9 0 9 2 0 9 8 2 0 8 .1 ) IR R 1 .8 % 3 7
CONTINGENCY PLAN • Green Land Manufacturers will need to rely on its quality of service and being
first in the market to protect its market share. For this we do extra ordinary promotional efforts to make consumers aware of our product, to create a positive image of our product and to have maximum of loyal customers • • Continuous efforts to research trends to meet consumer demands. To get an edge over competitors we differentiated, bring variation in products. So we must be prepared in a nice, attractive package in order to have the best positive value. A company which is under great management sees good profits on the market and is a good purchase opportunity overall will yield the best selling price.
Exit Strategy If we face any hurdles or crisis in future business then we will adopt Joint Venture with TAPAL Tea (Pvt) Limited because our share remain in business and we will got a strong shelter which already has a strong image in Pakistan. Insurance Our insurance company will provide a strong back up in case of business closing or changing its shape. As above it is mentioned that joint venture is an exit strategy in case of that our insurance company will pay full bank’s loan. Finance As our finical plan shows that our sales forecasting and our Owner’s Equity is a backup of us in case of any crisis. Employees We signed a contract with our employees of 6 months. So in case of any serious conditions we can fire any employee our employees.
Appendix MARKETING PLAN APPENDIX
Our Advertising campaign will pass through five stages STAGE 1: SETTING THE ADVERTISING OBJECTIVES We would have specific objectives regarding our advertising campaign which we would feel the need of the time at the time we shall start our advertising. Our advertising objectives will fall into three main categories: TO INFORM e.g. to tell customer about my product and its features. TO PERSUADE e.g. to encourage the customers to switch to a different andbetter brand. TO REMIND e.g. to remind the buyers that where they can find my product in the market. STAGE 2: SETTING THE ADVERTISING BUDGET As we are launching a new product in the market, that’s why, in start we would need heavy investment on the advertisement because we first will have to create an image in the minds of our potential customers. We not consider advertisement as our expense but investment. For such a heavy investment we would also need heavy budget. We would set our budget and would make required calculations before starting the advertisement campaign and will conduct feasibility study. When in the future we would be launching new product lines then our advertisement budget would not be much heavy because at that time our image would have been created in the minds of our potential customers and they would just welcome my product. We would have to just inform them at that level that we have enhanced our product line. Advertisement for that will not have heavy budget. But we will also calculate it before time. It would be really difficult for us to judge before time that how much expenses we would have on the advertising campaign. For that, we shall use a “rule-of-thumb"
(e.g. advertising/sales ratio) as a guide to set the budget. Means we shall estimate our sales or would see sales of previous years and would spend on advertisement with respect of the sales volume of particular product. STAGE 3: DETERMINING THE KEY ADVERTISING MESSAGES We believe that blindly spending on advertising do not guarantee success. More important is your advertising message that your aim is to deliver to the customer. Advertising must be done in a manner that your target customers must be addressed and for that no heavy advertisement is required as such. We would also focus on carefully designed message and not on such spending over. Our advertising message would have the following characteristics: Ø MEANINGFULL: Our advertising message would be meaningful and customer would feel it to be relevant. Ø DISTICTIVE: It would be designed in a manner that can attract the customers or minimum can get their attention. Ø BELIEVABLE: Our advertising message would seem to be believable and not such that customer feels just impossible to be. It is really a difficult and challenging job to create such an advertising message but we have worked hard on it and would manage it. STAGE 4: DECIDING WHICH ADVERTISING MEDIA TO USE There are the varieties of advertisement Medias from which we can make selection. But we would use such a media or media mix which would be more appropriate for advertisement of our specific product. We would see the key factors while choosing advertising media include: Ø RESEARCH: We would do research that what proportion of our target customers will be exposed to our advertising message. Ø FREQUENCY: Research will also tell us about the frequency or number of times our target customers will be exposed to my advertising message? Ø MEDIA IMPACT: We would also see that which media would be appropriate for our product to be advertised which would have much impact on the customer. For example,
television ads or billboards or newspaper ads, which would be better for advertising our product that will have more impact? We would probably use the following medias for my advertising whichever we would feel the need of time and my product to be advertised: Ø Television Ø Radio Ø Billboards Ø Transport Ø Direct mailing Ø Mail Promotion “Which Media we will use in the Start” We will use the strongest media of NEWSPAPER and CABLE in start of our business and launching the product as the newspaper is read by most of people in our community and cable is now days very common in the homes and shops of the customer. That’s why I have selected such a media and it will help the customer to be familiar with our product STAGE 5: EVALATING THE RESULTS OF THE ADVERTISING We would also evaluate our advertising campaign on the routine basis and it will focus on two key areas: COMMUNICATION EFFECT: We would see whether the intended message is being communicated effectively and to the intended audience? Ø SALES EFFECT: We would also see whether our campaign has generated the intended sales growth. This area is much more difficult to measure but would be beneficial for us to measure.
BUDGET FOR MARKETING MIX:: We will use percentage to sale method to set our promotion mix budget which percentage would be changed according to our share in the market. CREDIT & DISCONT FACI CREDIT FACILITY Company would be providing credit facility for purchasing products of worth Rs.300, 000/-. Such credit facility would be provided for a maximum period of three months. In this way company can get more control over distributors DISCOUNT FACILITY 5% Discount will be given to wholesalers. If they purchase bulk of 10000 Packs. 2% Commission will be given to wholesalers.
This Partnership Agreement is made on 31 May 2010 among Nine Partners of Green Land Manufactures. Name and Business Parties hereby form a partnership under the name of Green Land Manufactures to produce Instant Tea. The principal office of the business shall be Saddar Bazaar Gulam Muhammad Abad shop # 165 commercial market. Term The partnership shall begin on 31 May 2010, and shall continue until terminated. Capital The capital of the partnership shall be contributed in cash by the partners as follows:
• • •
A separate capital account shall be maintained for each partner. Neither partner shall withdraw any part of their capital account. Upon the demand of either partner, the capital accounts of the partners shall be maintained at all times in the proportions in which the partners share in the profits and losses of the partnership.
Profit and Loss The net profits of the partnership shall be divided equally between the partners and the net losses shall be borne equally by them. A separate income account shall be maintained for each partner. Partnership profits and losses shall be charged or credited to the separate income account of each partner. If a partner has no credit balance in their income account, losses shall be charged to their capital account. Salaries and Withdrawals Neither partner shall receive any salary for services rendered to the partnership. Each partner may, from time to time, withdraw the credit balance in their income account.
Interest No interest shall be paid on the initial contributions to the capital of the partnership or on any subsequent contributions of capital. Management Duties and Restrictions The partners shall have equal rights in the management of the partnership business, and each partner shall devote their entire time to the conduct of the business. Without the consent of the other partner neither partner shall on behalf of the partnership borrow or lend money, or make, deliver, or accept any commercial paper, or execute any mortgage, security agreement, bond, or lease, or purchase or contract to purchase, or sell or contract to sell any property for or of the partnership other than the type of property bought and sold in the regular course of its business. Banking All funds of the partnership shall be deposited in its name in such checking account or accounts as shall be designated by the partners. All withdrawals therefrom are to be made upon checks signed by either partner. Books The partnership books shall be maintained at the principal office of the partnership, and each partner shall at all times have access thereto. The books shall be kept on a fiscal year basis, and shall be closed and balanced at the end of each fiscal year. An audit shall be made as of the closing date. Voluntary Termination The partnership may be dissolved at any time by agreement of the partners, in which event the partners shall proceed with reasonable promptness to liquidate the business of the partnership. The partnership name shall be sold with the other assets of the business. The assets of the partnership business shall be used and distributed in the following order: to pay or provide for the payment of all partnership liabilities and liquidating expenses and obligation;
to equalize the income accounts of the partners; to discharge the balance of the income accounts of the partners; to equalize the capital accounts of the partners; and to discharge the balance of the capital accounts of the partners. Death Upon the death of either partner, the surviving partner shall have the right either to purchase the interest of the decedent in the partnership or to terminate and liquidate the partnership business. If the surviving partner elects to purchase the decedent's interest, he shall serve notice in writing of such election, within three months after the death of the decedent, upon the executor or administrator of the decedent, or, if at the time of such election no legal representative has been appointed, upon any one of the known legal heirs of the decedent at the last-known address of such heir. (a) If the surviving partner elects to purchase the interest of the decedent in the partnership, the purchase price shall be equal to the decedent's capital account as at the date of their death plus the decedent's income account as at the end of the prior fiscal year, increased by their share of partnership profits or decreased by their share of partnership losses for the period from the beginning of the fiscal year in which their death occurred until the end of the calendar month in which their death occurred, and decreased by withdrawals charged to their income account during such period. No allowance shall be made for goodwill, trade name, patents, or other intangible assets, except as those assets have been reflected on the partnership books immediately prior to the decedent's death; but the survivor shall nevertheless be entitled to use the trade name of the partnership. (b) Except as herein otherwise stated, the procedure as to liquidation and distribution of the assets of the partnership business shall be the same as stated in paragraph 10 with reference to voluntary termination.
Arbitration Any controversy or claim arising out of or relating to this Agreement, or the breach hereof, shall be settled by arbitration in accordance with the rules, then obtaining, of the American Arbitration Association, and judgment upon the award rendered may be entered in any court having jurisdiction thereof. In witness whereof the parties have signed this Agreement.
Executed this from 1st day of business, 2010 in Faisalabad, Pakistan. Signature of all partners ________________________
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