BUSINESS PLAN

OF
(Mushroom Chips)

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 The New product Plan

Submitted To:

Sir Hamza
Lecturer, Entrepreneurship
City University of science and information technology

Submitted By:

Group Members:

Muhammad Bilal
ID# 4211

Basheer Ahmad
ID# 4207

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 Acknowledgement

This study is the conclusion of the assignment by Entrepreneurship, course

instructor, sir Hamza City University Peshawar, for the students to
enhancement the experience and knowledge gather from a particular field.

We are grateful to our course teacher Sir Hamza Lecturer of City University,
for his guidelines to this study.

All the group members were worked equally to fulfill the assignment works
and did all types of research activities for collecting the information related
with our assignment.

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Table of context

Topic Page No

Introduction 05

Business plan methodology 05

Market analysis 06

Market demographics 07

SWOT Analysis 09

Competitors 11

Marketing Strategy 13

Financial Analysis 17

Controls 19

Implementation 20

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INTRODUCTION

We are doing Business plan for mushroom. It is the new product for the
market in the name of mushroom chips before it no one can lunch.

Purpose

To get a clear concept how to make the new product plan

To acquire knowledge how to make marketing plane.

Limitations

We did not collect the current information related with our product.

We had to give lot of times to collect information about competitors,

market situation because enough information not available.

RESEARCH METHODOLOGY

Secondary

Internet: www.google.com, www.wekipidia.com, Source:

thedailystar.net

Other: Collected information from marketing report, magazines,

running newspaper.

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Market Analysis

Situation Analysis
We know, the market means potential customers of a product or service.
Pakistan is a highly populated country. The birth rate is very high .As a result the
children rate is also very high.
We are not producing our product not only for children but also for teenagers, young
generation. So our total target market is very large. Market demands of market will
also increasing as much we can position in our customers mind.

(All this figure are estimated depending on class and age to have an idea about
demand on chips on this variables)

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Target market:

Children
People Middle class and higher class
Young people
urban areas people

This is our target market. We want to target children as well as young people
of middle and higher class of people. We are not eliminating lower class
people but first we want to create demand for our product then we will try to
reduce our product price and serve to all class of people.

Market demographics

Geographic:
Divisions and district town side areas such as Peshawar, Lahore, Islamabad,
Karachi etc.

Demographic:

Age-5-12, 12-18, 18-24, 24 to others and higher class, middle class of

people.

Product related:
Regular customers
Nagetive customers
Irregular Customers

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Behavior Factors

User enjoys the food not only for health but as a teats enjoyment.

User also spends money on food for different enjoyment of unique

teats.

Market Need:
Quality:

That we are first assuring in our product. It is highly reached by Protein-

15.53%, Fat-20%,Saturated fat-1.42%, Carbohidrated-2.45%, Sugar-2.40%,
Energy-100gm, Colastrol-0%, Sodiam-.64%, which is very much essential for
specially kids and young age people. Each and every process of the
production is done by automatic machine.

Customer service:

The customer wants good service to build a strong customer relationship.

That has a loyal customer.

Market growth:

The price of the soil meet is affordable in all classes of the society from lower
to middle and from middle to higher classes. There for the growth of the
market is going up. This is the one reason the other on is the change the
teats of chips.

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SWOT Analysis
An important tool for auditing the overall strategic position of a business and
its environment. SWOT is an abbreviation for Strengths, Weaknesses,
Opportunities and Threats.

Strength:
Without any touch of hand the product is made because of
development of technological skills.
There are another strength of the company is distribution channels.
Our distribution channel is very strong; relation of the supplier and
resellers is very strong.
The product quality is more high comparative to the other competitors,
because our main ingredients is Mushroom which is totally new flavor
and taste and also work against for the cancer.
Because of our good relationship with supplier, reseller and for the
good transportation facility our sale will be definitely increases. Our
value delivery network is in strong position. We are having good
relationships with our suppliers for a longer period of time.

Weakness:

Although the company is new, it has not established a brand or images

in the market place this is the weakness for the product popularity.
Because of the new product and company importer skills are absence
here thats why we cant includes any internal facilities.
For the first time the mushroom is exit in the market thats why people
cant properly reliable to the product quality.

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 Financial problem is another weakness of the company like what will
be the price Cost and investment.

Quality of the Mushroom is not up to mark

Opportunities and threats are external factors.

For example, an opportunity could be a developing distribution channel such

as the Internet, or changing consumer lifestyles that potentially increase
demand for a company's products. A threat could be a new competitor in an
important existing market or a technological change that makes existing
products potentially obsolete.

Opportunity:

Its an available product but of the new version of taste and quality
create a new change of the customer taste.
For the technological changes and advances its easier to give any
information and promotional activities to know the product popularity to
the people.

If the government changes politics then it will be easy to access the

product to the market.

Availability of the raw materials is increasing day by day which is help

to produce more products.

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 Threats:

If government is increase the taxes and the political issues are not
favor then it will be the threats for the company.

The product may not be accepted to the people then it will be the great
threats for the company.

The product competitor rate is very high thats why sometimes we are
facing many competing problem, which can be a threats of the
company.

Company establishment rules and regulation is strict thats why

sometimes to take any easy decisions are create complicated
situations.

Competitors:

1. Product: lays
Type Potato Chips
Owner PepsiCo
Country United States
Introduced 1932
Related Brands Frito-Lay
Wavy Lays

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 K.C. Masterpiece
Lay's WOW chips
Lay's Stack

"Ingredients: Potatoes, Sunflower Oil, Salt

2. Product: Cheese Ball

Product Code: CB

Product Description

CHEESE BALL is an extruded product made from corn and rice and
coated with rich cheese powder. It is superb in taste and something to
be enjoyed all the time.

Ingredients: Corn, Rice, Salt, Vegetable Oil, Cheese Powder & Seasoning.

Company Name: Meridian Foods Ltd.

Manufacturer, Trading Company
Business Type:

Product/Services Chips, Chocolate, Sauce

:
All person
Customers:

Total Annual
Below US$1 Million
Sales

Total Annual
Purchase Below US$1 Million
Volume:

Product offering:
The Mushroom chips, including all the features described in the product
review section. The product is verified in two ways, first by the size 1) Kids 2)

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Family and second by the taste of the product 1) Tomato flavor 2) Potato
flavor 3) Hot & Spicy flavor.

Keys success:
Mushrooms are good sources nutrition and this is our main ingredients.

Marketing Strategy:
The key to the marketing strategy is focusing on the health, diet and
satisfaction of customer thought Geographic divisions and district town sides.
Demographic Age-5-12, 12-18, 18-24, 24 to others and higher class, middle
class of people.

Mission:

We want to be number one chips company in Pakistan

and create strong relationship with our supplier and
ensure our customers health security by providing more
nutrition.

Brand Name: mushroom chips

Product Name: Mushroom

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Marketing Objectives:

We want to be no.1 Chips Company in Pakistan.

After one month, we are collecting our sales review and satisfaction

level of our customers.

Diversification in our product line.

We want to create social value for position in customers mind.

Financial objectives:
Marinating a significant research and development budget.

Double profit will be earned within 3 years.

Increasing production level each month by 1 %

Investing more in Cultivation Of mushrooms.

Establish 3 Big factory for producing large amount of product

Target market:
Children

People Middle class and higher class

Young people

urban areas people

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Positioning:

To children, young people, chips customers who are seeking for delicious
taste with nutrition .Mushroom chips contains mushroom that gives you taste
with good nutrition because it has the highest level of Protein-15.53%, Fat-
20%, Saturated fat-1.42%, Carbohidrated-2.45%, Sugar-2.40%, Energy-
100gm, Colastrol-0%, Sodiam-.64%

Strategies:

Marketing mix:
Marketing mix consist of four basic things which is known as four Ps:
product, price, place, promotion under the consideration of our product
(Mushroom Chips).
These four Ps are specified as

Product:
The Mushroom chips, including all the features described in the product
review section. The product is verified in two ways, first by the size 1) Kids 2)
Family and second by the taste of the product 1) Tomato flavor 2) Potato
flavor 3) Hot & Spicy flavor.

Price:

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The mushroom chips will be introduced at Rs.14 wholesale and RS.15
estimated retail price per unite of medium size and Rs.24 wholesale and
Rs.25 retail price per unite of family size product. We expect to lower the
price of packets within few months. Because of the first time at market the
company would like to give some discount to the retailers which will make
them some profit. The company are also giving some credit terms facilities to
there wholesaler and retailers.

Promotion:
The management of mushroom chips has budgeted Rs.1, 80,000.00 for there
advertising and promotion activities for per month. As a new product in the
market it needs huge amount of advertising and promotion activities to tell the
consumer about the product and its features. For that reason management
decide to go for more fancy advertise in Television, Radio, Billboards, and
Web site and in News paper.

The policy makers has decide to offer different types of popular

cartoon and super hero characters stickers and tutus with per packet of
Mushroom chips for Childs and purchase intensive to the wholesaler and
retail for sell promotion. By organizing Charity concert, Open concert, Sports
tournament, Reality shows etc; mushroom chips would like to build a good
relation whit people in near future.
Place:
At the very beginning Mushroom Chips will distribute to the town area of 6
divisions across the country with companies own transport system. By
considering the future demand it has planned to distribute in the whole
country area.
For unexpected future demand it always kept sufficient amount of inventories
in its own warehouse.

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Financials Analysis

Sales forecast:
In this section we make expected budget of sales and cost monthly and
yearly. We count break even point unit sales. We also present our expected
sales revenue and profit. Our product per unit cost is 13.5 Rs. And wholesale
price is 14 Rs. And Maximum retail price is 15 Rs.

Expected Sales Budget

Division Monthly Yearly

Unit Cartoon Unit Cartoon
Peshawar 5,00,000 5,000 60,00,000 60,000
Islamabad 2,00,000 2,000 24,00,000 24,000
Lahore 70,000 700 8,40,000 8,400
Karachi 80,000 800 9,60,000 9,600
Queta 50,000 500 6,00,000 6,000
Gilgit 60,000 600 7,20,000 7,200
Total 9,60,000 1,15,20,000

Expected Cost Budget

Type of Cost Monthly(TK) Yearly(Tk)

Variable 1,10,40,000 13,24,80,000
Fixed 20,00,000 2,40,00,000
Total 1,30,40,000 15,64,80,000

Per Unit Cost

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Per unit Cost = (Fixed cost + Variable cost)
Unit Production

(2, 40, 00,000 + 13, 24, and 80,000)

1, 15, 20,000
= 13.5 Rs.

Break-even Unit Sales (Yearly)

Per Unit Sales 14 Rs.

Per Unit Variable Cost 11.5RS

Per Unit Contribution 2.5Rs.

Fixed expense
Now, B E S in Unit =
Per Unit Contribution

2, 40, 00,000
=
2.5

= 96, 00,000 unit.

Expected Revenue (Yearly)

Sales (1, 15, 20,000* 14) 16, 12, 80,000

Variable Cost 13, 24, 80,000

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Revenue 2, 88, 00,000

Expected Profit (Yearly)

Revenue 2, 88, 00,000

(-) Fixed expense 2, 40, 00,000

Profit 48, 00,000

Controls:

The controlling process:

In the control Process, we will compare our total result with the expected
things that we are mentioned. If there is mistake s then take necessary steps
to control the overall process.
There will be two way of controlling. One is operational control and second
one is strategic control.

Operational control:
If any changes occurred to our production process, then it will be done by
operational control.

Strategic control:
If any changes occurred into strategic plan than it will be done by strategic
control.

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Market Audit:
We will hire a market audit or researcher to evaluate our marketing plan and
give advices how to improve in operational control, strategic plan, others
plans

Implementation:
Our company Mushroom chips will be introduced in May 2010. Following
are summaries of the action programs we will during the first three months to
achieve our stated objective.

April:
We will initiate a Rs 300000 trade sales promotion campaigns to educate
retailers and generate excitement for the product launch in May. We will
exhibit electronic trade show, provide mini pack sample to the selected
customer. Our promotion manager is responsible for this work

May:
We will start an integrated print, radio and media advertisement targeting
consumers. This advertisement will show our products differentiation from
other competitor. Advertisements also show our products feature to the
ultimate customer. Our Advertisement manager is responsible for those
works.

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June:
As the multimedia campaigns continue, we will add consumers sales
promotion techniques such as giving scratch card and lottery etc. Our sales
manager is responsible for this type of sales increasing techniques.

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