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BUSINESS PLAN
Brand Name:

Easy Tea
(Perfect for life)

Roll NO:

M Umar BBA SH 13-07

Abdul Qayyum Altamash BBA SH 13-28

Table of contents
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Acknowledgement

First of all, we thank ALLAH for his favor then after his beloved
messenger HAZRAT MUHAMMAD (PBUH).

Secondly, we thank our parents for their moral and financial support in
our educational career.

Thirdly, especially we thanks to our teacher Sir Qamar Aziz

Under their opportunity we polishedour hidden qualities and skills.

Sir it is just because of you that it came to happen.

Thank you all!!

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Executive Summary

Our functional areas of a business, including operations, management, finance, and marketing. It
should serve as the road map for your business and follow a basic format, but could be fairly simple
or rather large and complex for a larger company. There are two main reasons for our business plan.
(a) To learn how we can plan and develop a business?
(b) To demonstrate the feasibility and potential profitability to potential investors, lenders,and
other outside audience.

The actual length of our business plan is normally determined by the scope and detail as
well as the size of the prospective business which is given next. The plan itself can be utilized both
internally for management purposes and externally to assist in identifying quality employees and
possible partners. It will serves as a feasibility study in the sense of defining the business’s
strengths, weaknesses, opportunities, and threats (SWOT). The business plan can also assist in
decision making and the evaluation of processes. This business plan requires a partnership between
three people with two very different skills. There must be a sales person someone who can sell the
tea bags output directly but who also has the ability to develop markets, organize the marketing, and
train and manage other sales people.
Due to our unique product time is saved because sugar and milk is not separately purchased.
Through the uniqueness of product it is estimated that our product will be market leader. We
produced the new product in the market and we firstly target the local market. Our product is
achieving competitive advantage and strengths the position of business.

.
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Company Name: BABA Enterprises (pvt) Ltd.

Address: Khokha Bazaar Sahiwal (Punjab) Pakistan.

City, State Zip Code: (Punjab), Pakistan, 54000

Phone Number: +92-40-xxxxxxx

Fax Number: +92-40-xxxxxxx

Email at: BABA786@yahoo.com

Web site: Baba.ET.com.pk

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Owner’s Massage
The time is running very fast and in this busy world we want to save the time and money of
people with the refreshing product which keep our customer refresh and healthy.

Situational Analysis
The situational analysis is designed to take a snapshot of where things stand at the time the plan
is presented.
The situational analysis covers the following key areas.

Why this plan was produced.

This plan is established for introducing a new product named as EASY TEA. Through this plan
it is estimated that our product will be market leader because by using this product a consumer
can save his money, time and effort. In this plan we shall adopt a strategy that each and every
customer get our product because it is in the approachable for every customer. It shall be easily
available in each and every retailing and whole sale shops.

Current Product
Our current product is the new product in the market with the new entrance. With the 2 month
research we are going to launch our new product named as EASY TEA.
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Do the customers want to purchase our

product
Market Research:
yes
no Through use of primary
5%
moderate and secondary data, we
35%
have researched the
60%
following result for our
product.

70
60
50
40
30
20
10
0
tea bags open tea tea from hotle
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Competitive Advantage

Competitive advantage is defined as the strategic advantage one business entity has over its rival
entities within its competitive industry. Achieving competitive advantage strengthens and
positions a business better within the business environment.
Our products is very different from the others products because is very easy in use and time
saving we produce this products according to the customer need. Our products give us the
competitive advantage because its price is very low as compare to the others products and its low
price and high quality gives us the competitive advantage.

Vision
To be the gold-standard specialty tea company in the world with brands that attracts a highly
dedicated and loyal customer following.

Purpose and Mission

To provide benefits to all stakeholders and consumers, by leading the tea industry through
quality, innovation and a sound value system that will strengthen our core business and to
become a market leader. Mission of EASY TEA offering people of all cultures and races and
create awareness through public programs, seminars, and workshops
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Product Feature;

This product is base on the need of customers who wants the best commodity at low price and
high in quality.

Our product’s feature is

1. High quality

2. Low price

3. Time saving

4. Integration of milk and sugar etc.

5. Whole tea cup in a single sashay

Key success factor:

Price:

The more less expensive and high quality a tea is the more likely it is our customer will buy it.
This has to do with how the quality of the tea is perceived. Our research shows that, of our
respondents, those who bought tea most frequently also paid any price for it.

Advertising & Promotion:

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The tea industry is an industry that is dominated by image. As an online business our best bet is
word-of-mouth advertising which is, by our research, the most effective form of advertising for
online businesses. We will achieve this by first targeting our advertising on Face book.

Analysis: Current Target Markets (demographic profile)

Targeting a segment means the company is making a selection and targeting a certain group of
consumers or buyers for its product or services. Evaluation of different segments that companies
make is most critical before targeting any segment, every company have its own criteria of
selecting a segment such as size, potentiality of growth, profitability, economies of scale, or low
risk in the segment EASY TEA has targeted the urban areas and has concentrated on the upper
and middle classes. Therefore despite the fact that it uses a mass marketing approach it can easily
be denoted that this product is catered to a particular segment. Even in its marketing approach for
EASY TEA the product is presented in a different way for instance the teabags are targeted
toward the upper high class, while soft packs and jar packs are targeted for middle and middle
lower class. Today as both men and women consume equal amounts of tea the age group
segment selected for EASY TEA is for all age group for they want to target those people who are
young, trendy.

Our targeted market will be the SAHIWAL’ OKARA’ HUJRA SHAH MUKEEM’ AND KAMIR
WALA AND ARIFWALA.

Characteristics of targeted customers;

TEA usage is the need of every customer and it also becomes the youngster’s trend. Keeping
their needs in view we are going to launch the type of innovational product through which the
customer can save the time and money both
Tea is using in every house; office, factory, and every place you can say that it become the need
of every one. So its usage well is very high as compare to others products.
Customers perceive the product in relation to competitor’s products
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Our product is very easy in use as compare to others companies products.

If the customer want to take a tea of other company they have to purchase the ‘’sugar’’ milk’’
and tea pack and it is a time wasting process. But in our product the customer have to purchase
the easy tea bag and boiled water. And it is a time saving process and product. We give some
samples to targeted market and all the shops of the cities and got the views of the shopper and
retailer and also from the customer. And we got the positive response from them. And after that
research we hopefully go to launch the product.

Target market’s attitude regarding the general product category

The views regarding the general product of same line was very positive. The give the good
response and they assure us that our products will get the maximum market share after proper
launching
Analysis: Current Competitor(s)

Examine the main competitors serving the same target market. But fortunately There is no a well
reputed company of mixed tea sellers in Pakistan simple tea is available at every store but the
product like ours is not available in the market.
On the other hand we can say that our competitors may be the Lipton, Supreme. Vital Etc.

Advertisement and promotional strategies

By Poster

We are going to introduce the new brand in the market in all

over the Punjab.
We will advertise our new brand in all over the Punjab. Our
billed board will be at the outside the city and inside the city
and also in the Highway
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By Stalls
We will conduct our stalls where people go for Taking tea like
hotels and Canteen and there we will give the sample of tea to
the People for test and get some suggestion.

By SMS to friends and other people

We will send some promotional sms to our friends and other people about new brand and also
give them some discount showing us our sms.

Advertisement through sampling

We shell offer our new product with some other product for promotion and advertisement and
shell get the suggestion from the people whether they like our product or not.

By cable advertisement:

A cable advertisement shell is held I cable system in all the cities.

Marketing trend

Lipton have got captured the 58% marketing share and supreme have captured the 25%
marketing shares Vital and other company have got the remaining shares.

MARKETING TREND

17%
LIPTON
SUPREME
OTHER CO.
25% 58%
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SWOT analysis;

Strengths

 High quality.

 Low cost

 Punctual and loyal staff.

 Safety rules for employees.

 Our Company takes material quality very seriously according to the Company’s
standards.

Weaknesses

 Not for sugar patient

 No proper staff

 Inexperience

Opportunities
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 We are providing the new product with the mixer of Tea, Sugar, and Milk so we have
the opportunity to get the maximum market share by providing the easy tea

 Large market

 Changing the life styles & fashion

 Providing the low cost

Threats

 Threat of new competitor

 Threat of substitute product

Manufacturing process

In our manufacturing process we take much care of the quality and safety of the employees. Our
process is very simple as compare to others. We take inputs (tea, milk powder, etc) from our
supplies from the different well reputed company.
we use the grind sugar, coated tea, and healthy
milk powder ;we are using the packing machine
and grinding machine.

Grinding machine cost Rs250,000

Packing machine cost Rs150,000

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FINANCIAL HIGHLIGHTS

Product price

Per pack price = Cost per pack + Gross profit per pack

Rs6.5 = Rs4.38 + Rs2.12

Cost per pack

Sugar 15 gram * 0.062per gram =Rs0.93

Tea 2 grams * 0.225per gram = Rs0.45

Milk powder 5grms* = Rs.2

Packing expenses =Rs1

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Cost = Rs4.38
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Sales:

Territories Union councils

Sahiwal 10

Okara 08

Kamirwala 06

Arifwala 06

Total union councils 30

we will make our product at 5 stores, shops and hotels in every union council level
territory. so collectively, we will target 150 selling points (30*5).

SALE TARGET FOR EACH SELLING POINT OF TEA BOX (Proposed)

For every selling point, it will be target or goal to sale 1 box per day (25 tea bags):

Sales = (150*25) * 6.5 = 24,375 Rupees per day.

One Month Total Sales = 24,375 * 30 = 731,250 Rupees.

One Year Total Sales = 731,250 * 12 = 8,775,000 Rupees.

Source of finance
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Initially capital will be generated by all of us. If there will be needed more than we will take
loans from our relatives.

We do not want to go Banks or other monetary institutions because initially we are not in
condition to pay high interest of such sort of monetary institutions.

We are the five partners Mr. Andleeb Khalid, Mr. Waseem Arshad , Mr. Adeel Ahmad ,Mr.
Bilal and Mr. Sajid Nadeem .Total investvestment Rs2,000,000 and the profit ratio is 20%,
20%, 20%, 20%, 20% respectively between us.

Income statement:
Description. Amount in Amount in
(Rupees). (Rupees).
Per Year
Sales 8,775,000
Cost of goods sold (5,913,000)
Gross Profit 2,862,000

General & admin expense.

Distributor commission(.129 per tea bag) 174,150

Retailer commission(.40 per tea bag) 540,000 (714,150)

Earning Before Interest &expense . 2,147,850

Tax (17%) (365,134)

Net profit. 1,782,716

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Consider that Rs1806000 is fixed expense and variable expense Rs3.7 per unit.

Break-even point
Break-even tea bags = fixed cost / price – variable cost.

= 1806000 / 6.5 - 3.7

= 645000 tea bags.
Itmeans that our company is going to sell more than break-even point.

Balance Sheet

Assets Equities

Cash in hand 500,000 Capital 2,000,000

Machinery 400,000

Building 600,000

Vehicles 300,000

Other assets 200,000

Total Assets = 2,000,000 Total Equities = 2,000,000

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Actual all the sample are home made but INSHA ALLAH after the success we will hire the labor
and machinery and other necessary equipment .But now at this level we are not owners of the
company. We are the labor of the company.