Business plan for Green coconut Water

Introduction :

Name: Octopus Bangladesh Private Limited

Legal Structure : The legal structure of our business would be private limited
company which would be formed according to companies Act 1994. The number
of the members of our comany would be 6 (six).
Business type: Our business would be bredding Business. We want to market

Green Coconut Water. We have assigned a name for the product as Jaul.
Goal:
Achieve business excellence through quality by understanding, accepting, meeting and
exceeding customer expectations. Green coconut water follows International Standards on
Quality Management System to ensure consistent quality of products and services to achieve
customer satisfaction.

Executive Summary:
We want to market Green Coconut Water. We have prepared this feasibility plan on that
basis. We have assigned a name for the product as Jaul. Since the raw materials are very
much available in our country, we have decided to give the product an indigenous image.
Jaul is a kind of soft drink that provides the consumers with processed green coconut water
in bottles. For the marketing purpose of the product we have decided to launch three product
lines. The Jaul would be launched in the market at 250 ml. 500 ml. and 1 Litre bottle.
We have set a reasonable price for the product so that all kinds of people can afford to buy
this soft drink. We have followed the Target Costing pricing approach. We would gain a
competitive advantage, as this is a first hit in the market.
We have targeted a huge market segment for the product. Bangladesh is a large populated
country. Lots of people are looking for such a product. Green Coconuts are not available all
the time. For example: a person walking on the street. Suddenly he feels thirsty. Now if he
wishes to drink green coconut water he cannot find it easily. It is not always found in the
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right place at the right time. If we launch our product in the market, a person willing to
drink green coconut water can have it from a nearby shop. At present this is not possible.
Our target market includes health conscious people, sick people, sportsperson & many other
consumers, which we have segmented from the Demographical, Geographical, Psycho
graphical & Behavioral point of view.
We have prepared a financial documentation for this feasibility plan of a new product. As
we are introducing the product in three categories at 250 ml, 500 ml and 1 Litre bottles, we
have prepared the Break-Even-Analysis for each of the product line. We have prepared the
feasibility plan for five-year basis.
For 250mls the break-even point is at 4158004 Units. That means if we sale 4158004 Units
a year, we will make neither profit nor loss. So to make profit we have to create a market
demand in such a way so that more than 4158004 Units are sold every year. Obviously the
unit cost will eventually come down because of the law of Marginal Cost. Then the breakeven point will also come down. But that is from the long run perspective. So initially we
might suffer loss but ultimately we would earn enough profit. The consumers will first taste
the product by consuming the 250ml bottles. So we might gain a short run profit from that.
For 500mls the break-even point is 4914004.914 units per year. So we have to sell more
than 4914004.914 units to earn profit. We know that after the product is well promoted,
people will eventually consume more of 500mls, as pet bottles are more in demand. The
price is such that people will turn to the 500mls because we are providing them at lowest
possible market price.
For 1Litre bottles we have a different plan. We know many people are not going to consume
the 1Litre package. So we have assigned more profit on them per unit. Our target is to sell
less quantity of products but achieving higher profit. For 1Litre bottles we have estimated
the break-even point at 1724137.931 bottles per year. As we can see, we have prepared the
selling price in such a way so that, to be in a profit earning zone we have to sell least
amount of units comparing the other 2 product lines.
We have given an elaborate discussion on financial summary at the later stage of the
feasibility plan. We have followed the Target Costing Pricing Policy; which means an ideal
price is set first based on customer considerations, then target costs will ensure that the price
is met. We decided the market price before. Then we calculated the estimated unit price &
fixed price. Then we decided how much profit margin is possible on each of the product line.
We have assigned three different profit margins for three product lines. This price setting is
based on the current market research.

Mission of Green coconut water:

Mission is to achieve business excellence through quality by understanding, accepting,
meeting and exceeding customer expectations. Green coconut water follows International
Standards on Quality Management System to ensure consistent quality of products and
services to achieve customer satisfaction.

Vision:

Endeavor to attain a position of leadership in each category of its businesses.

Attain a high level of productivity in all its operations through effective and efficient
use of resources, adoption of appropriate technology and alignment with our core
competencies.
Develop its employees by encouraging empowerment and rewarding innovation.
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Promote an environment for learning and personal growth of its employees.

Provide products and services of high and consistent quality, ensuring value for
money to its customers.
Encourage and assist in the qualitative improvement of the services of its suppliers
and distributors.
Establish harmonious relationship with the community and promote greater
environmental responsibility within its sphere of influence.

New Product:

Product Description
Product Portrayal

Jaul is a product that serve different segment of customer. The product is green coconut
water, which is unique in the current market. The green coconut water will be processed
and sold in glass bottle of convenient sizes of 250 ml, 500 ml and 1litre. The green coconut
water will be very much refreshing and provide great support to the sick and
health conscious people. Our target market is very large with different segments. Our
expected sales are very high. The development cost is tk.2.5 million approx.

Product Profile
Name of the Product:
Jaul
Type of Product: Green Coconut Water
Ingredients: Pure natural green coconut water,
Sugar, mineral salts, vitamins C.
Container: Stylish glass bottle
Container size: 250 ml, 500 ml, 1Litre
Product Price: 250 ml for Tk. 12
500 ml for Tk. 18
1litre for Tk. 38
Estimated Durability: 12 Months from date of manufactured
Machinery used: Advanced technology imported from
USA, UK and Netherlands.
Brand Slogan: Coola Coola Always Refreshing.

Market Research and Analysis

Our company wants to develop and introduce a new Product. So, we have gathered
information through in-depth interviews. We made a survey of the market to have a clear
idea about our market, our customer demand, needs and wants. This information helps us to
know about the current market and prospects of our new product.

Market Description
Bangladesh is a country of about 150 million people.. The total market size of the soft drink
industry is about 20 million and day by day it is increasing. We have a spread nationwide
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market of different convenient product. People are nowadays very much concerned about
the market and product conditions. So we have a growing prospect of customers of Jaul.
Among the population we worked out few segments of customers who will prefer our
product most.

Market Segmentation and Targeting

Market Segments
We have observed and analyzed the market and based on the nature of the market we
segmented the market in the following sectors:
Geographic Segmentation:
Sylhet
Rajshahi
Khulna & Barishal
Chittagong
Dhaka
Demographics:
Individuals
Family
Sportsman
Business buyer
Psycho graphics:
Higher class
Higher mid class
Middle class
Behavioral:
Sick people
Health conscious
Sophisticated who take the new product from the market

Target market and projections:

Analyzing all the segments, we decided our target market according to our product category.
The target customers of Jaul are sick people, health conscious people, sportsmen and
tourists. The company decided to charge Tk. 12 for 250 ml bottles, Tk. 18 for 500 ml bottles
and Tk. 38 for 1 Litre bottles, if we consider price versus taste received then we can see that
taste received is more in value. Therefore charging the mentioned prices are justified. The
following graph gives a clear idea of our target market.
Target Market:
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 Health Conscious 32%

Sick people
43%
Tourist
3%
General people 22%
We separate our target market into four different segment based on their geographic,
demographic, psychographic and behavioral characteristics.
Health conscious: Health conscious people basically the sports person are one of our
largest target market. In this segment, we get a lot of potential customer. One third of our
total population is young. This is a significant number that we have to concern about them
and provide product, which is fit for them. About 5 million people of this total number are
health conscious. They spend about Tk. 500 in a month in average.
Sick people: Sick people are one of our major considerations. More than 1 million children
suffer from diarrhea that need liquid food. Not only child but also the adult might suffer
from those types of problems.
Tourists: Every year a huge number of tourists visit Bangladesh. We want to provide them
with Jaul.
General Customers: Besides the above segments, the general customers will acquire a
significant portion of our target market.
Market Needs:
Jaul wants to satisfy its customers need. Thats why it is important to identify the market
needs. Our first consideration is to provide the best product to its customers. Thats why we
offer three different sizes of bottle with different prices for its different segment of
customers.
250 ml: The lowest price for the rural mid social class and individuals.
500 ml: Its target the sick people and tourist
1litre: For a small family.

Advertising and Promotion:

The most successful advertising will be through BTV, NTV, Channel I, ATN Bangle, RTV,
and CSB News which are the most popular television channels in the country. We will also
use some bill-boards and leaflets and we will hold a sport event to promote the product. We
will also use our experience so that we can create attention to the customers.
Measurements:
A third party who facilitates a deal between two other parties Related Terms

Middleman Intermediary between a manufacturer and a consumer.

Broker An individual or firm who acts as an intermediary between a buyer and

seller, usually charges a commission. For securities and more

[5]

Distributor A company that buys open-end investment company shares directly

from the fund for the purpose of reselling to interested buyers.
Finders fee, investment bank, underwriter, counterparty risk, disintermediation distribution
network, market, rebate, acquirer
When finally our product will be made then at first we will survey this water in our
organization or people in our organization. If our employees says it is good or better than
other spray and if they says YES it is harmless, effective and also environment friendly,
then we will launch this product. To complete our survey we will collect the information
about our green coconut water from our employee.

Competitive Analysis
The Soft drink industry is very much competitive. Many soft drink companies have acquired
a significant portion of the market. But the unique features of Jaul will take it far beyond
the reach of the competitor. Because, no one has yet thought about selling green coconut
water in such a specialized way. To evaluate our prospect of Jaul in the current market, we
have analyzed the market situation in various ways. Following are some demonstration of
the analysis:

SWOT analysis:
The product existence in the future is depending on its strengths, weakness, opportunities
and threats analysis:
Strengths:
Available input materials
Low production cost
Technological and marketing knowledge
Strong distribution channel
Easy manufacturing process
Reasonable price
Weaknesses:
It is easy to copy the idea by others
Taste differ from the natural green coconut water
Green coconut water cannot be preserved for longer period
Opportunities:
1. Monopoly market
2. Large market
3. High demand
4. Might have a chance to get subsidies by Govt. to export
Threats:
1. High competition in future by copying the idea
2. Entrance of new product
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3. Alternatives are avoidable in some segment

4.Uncertainty of launching a new product.

Com petitor Analysis

The major soft drinks and juice companies of current market are:
Pran Groups
Starship
Uro Cola
RC Cola
Coca cola
Pepsi
Acme
Danish
Foreign Products etc.

Distinct Competency:
These companies can try to entrance our market by launching new product lines to compete
us. Yet, we have distinct competitive advantage. That is our product is still brand new. The
other companies will take sometimes to enter into the market. Till then we can have a
monopoly market condition. The other advantage that we have is lower price. We will sell
products in reasonably lower price then other competitors do.
Strategies against competitors: To compete with the major competitors we can adopt
the following measures:
Providing the best service to create high customer satisfaction
Reasonable and acceptable pricing
Promising and providing top quality product
Launching highly effective mass promotional activities
Continuous innovation and modification of the products
Creating and maintaining long term customer relationship
Creating Brand Loyalty among the target consumers

Market Plan
Pricing Strategies
We have decided to set a reasonable price for our product when we will develop it. We
considered many factors in setting the pricing policy. We will describe a six-step procedure:
Setting the pricing objectives:
Our company has decided where it wants to position its market offering. We have chosen
our objective to maximize market share. We believe that a higher sales volume will lead to
lower unit costs and higher long-run profit. We have set the lower price because we assume
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that the market is price sensitive. Our overall objective is to capture the maximum market
share by setting lower price.
Determining Demand:
Each price will lead to different level of demand and therefore have a different impact on
companys marketing objectives.
Estimating costs:
We have estimated the cost and want to charge a price that covers the cost of production,
distribution and selling the product, including a fair return for its effort and risk.
Types of cost and level of production:
There are two types of cost: a) fixed and b) variable. In our new product development
project fixed cost is 2,00,00,000 taka. Fixed cost includes- machinery, monthly bills, and
salaries of employees and so on, regardless of output.
There are some variable costs like-cost of bottle, packaging and so on. These costs tend to
be constant per unit production. We have estimated that per unit variable cost is Tk. 6.3 for
250 ml, Tk. 12.6 for 500 ml and Tk. 24.4 for 1litre.

Analyzing competitors costs, prices and offer:

We have analyzed our competitors price and found that Pran charges tk.10 for 250 ml
bottle, Starship charges tk. 12 for 250 ml Pac.
Selecting a pricing method:
We have chosen the target costing method to set price for our product; pricing that starts
with an ideal selling price based on customer considerations, then target cost will ensure that
the price is met.
Promotional Strategies:
To acquire a strong position in the market, we need to give special emphasis on effective
promotional activities. In order to get the maximum market share we will have to use all
four tools of marketing promotion. Specially, advertising through mass media will support
us a lot.
We initially will give more emphasis on paper ads and TV commercials. Because,
advertising through these media is the most effective way to reach the customers and
position our product in their mind. We are anticipating that this will have a massive impact
on the teenagers and other enthusiasts. Few neon signs and bill boards of Jaul also can be
set up in some core points of the city. We hope to reach 75% of our customers through
effective advertising.
Personal Selling:
Though personal selling skill is not that much effective for convenient products like Jaul,
we will inspire and train the sales persons of the retail stores to convince people to buy our
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product when they will come to buy any drinks item. The sales persons will inform the
consumers about the cool refreshing taste of Jaul and about the nutritious aspects. We
hope that will play a significant role to increase our sales.
Promotional Tools:
We have also planned to apply some promotional tools. Initially for sometimes we will
distribute our product at 50% discount just make our new product familiar with the
customers. This will be the market-testing period for our product. Later, we may apply the
strategy of giving gifts, lucky coupons, tour tickets depending on the market and
competitive situations.
Public Relations:
We have future plans to hold seminars, commit social development, supporting social
activities, to arrange cultural functions and mobile game shows for publicity purpose.
Distribution Channel
In the initial stage, we will distribute the products with our sole distribution channel. When
our market will spread out, we will distribute our products through dealers. We will set our
own outlets in few core market positions. When we will go for mass marketing, we will
supply our product nationwide through dealers. Our dealers will take the products to every
district of the country. Jaul will be available in all retail stores of the country.
Services and warranties
As we are targeting to the top most customer satisfaction and building long-term customer
relationships, there is no alternative for us rather than providing top quality service. Giving
the customers timely and instant quality service is our primary concern. We even planned to
open few customer service centers where will response to customers interactions. We will
collect information, suggestions, ideas and opinions of the customers through these centers
and will innovate and modify our product accordingly. We also will change any defected
product.

Manufacturing and Operations Locations

We will set our manufacturing and other working areas in convenient locations. We will
prefer the locations to set up our manufacturing firms, warehouses and inventories in
different core business points of the country where it will be easier to both collect the raw
materials and transport the final goods to the market.

Human Resource
The board of directors will be responsible for the recruiting activities. Recruiting will be
done through written tests followed by interviews.

Technological Aspects
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To create and innovate new quality products we need to use advanced technology. We need
high tech machineries imported from the foreign countries. Not to mention, skilled people to
operate them. We have already studied all the technical aspects and prepared a list of
instruments and their costs. The machinery will be collected when required.

Financial Analysis and Documentation

Sales Forecasting
The following Table and graph show our expected sales for the coming five years:
Expected
250 ml.
500 ml.
1 Litre
Sales(Per
Bottle
bottle
bottle
year)
First Year

4000000

4500000

1500000

Second Year

4500000

5000000

1700000

Third Year

5500000

5800000

2000000

Fourth Year

6000000

6500000

2400000

Fifth Year

6300000

6700000

2500000

Profit and Loss Projection

For 250 ml.
It
Year
Year
e
1
2
m

Year
3

Year
4

Year
5

T
o
t
a
l
S
a
l
e
s

4444
0000

4999
5000

6110
5000

6666
0000

6999
3000

T
o
t
a
l
C
o
st

(452
0000
0)

(483
5000
0)

(546
5000
0)

(578
0000
0)

(596
9000
0)

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T
o
t
a
l
P
r
o
fi
t

(760
000)

1645
000

6455
000

8860
000

1030
3000

T
a
x
4
0
%

6580
00

2582
000

3544
000

4121
200

N
e
t
P
r
o
fi
t

(760
000)

9870
00

3873
000

5316
000

6181
800

For 500 ml.

I
Year
t
1
e
m

Year
2

Year
3

Year
4

Year
5

T
o
t
a
l
S
a
l
e
s

7501
5000

8335
0000

9668
6000

1083
5500
0

1116
8900
0

T
o
t
a

(767
0000
0)

(830
0000
0)

(930
8000
0)

(1019
0000
0)

(1044
2000
0)

[11]

l
C
o
s
t
T
o
t
a
l
P
r
o
f
it

(168
5000
)

3500
00

3606
000

6455
000

7269
000

T
a
x
4
0
%

(140
000)

(144
2400
)

(2582
000)

(2907
600)

N
e
t
P
r
o
f
it

(168
5000
)

2100
00

2163
600

3873
000

4361
400

For 1 Litre
Item

Year 1

Year 2

Year 3

Year 4

Year 5

Tota
l
Sale
s

5400000
0

6120000
0

7200000
0

8640000
0

90000000

Tota
l
Cost

(5660000
0)

(6148000
0)

(6880000
0)

(7856000
0)

(8100000
0)

Tota
l
Prof
it

(2600000
)

(280000)

3200000

7840000

9000000

[12]

Tax
40%

(1280000
)

(3136000
)

(3600000
)

Net
Prof
it

(2600000
)

(280000)

1920000

4704000

5400000

Conclusion:
We all know that, todays fast moving world respect the new, innovative ideas. To keep the
same pace with this situation our company had decided to launch Green coconut water and it
has a bright future in its market. As the product is innovative, the consumers are going to
appreciate it. And according to the R&D (Research and Development) department this
product will be a strong product mix for our company. And once our Green coconut
water will reach to the hand of our targeted customers, we will be able to capture the market.

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