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1.

0 Executive Summary

This document is a condensed overview of the process of creating a business plan, through
concept generation to implementation. This report consists of the overall business plan of the
Naturee which will be focused on the food and beverages industry and it will be discussed about
the marketing plan including marketing strategy, marketing mix and etc. Moreover, it will be
discussed about the financial projection in 2021 including profit and loss statement and cash flow
statement. In addition, it will be discussed about the operational plan of the Naturee and risk
management including the roles and responsibilities regarding the risk management of the
organization.

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Table of Contents

1.0 Executive Summary...................................................................................................................1


2.0 Introduction................................................................................................................................4
3.0 Business Details.........................................................................................................................5
3.1 Company Introduction...........................................................................................................5
3.2 Business Proposition..............................................................................................................5
4.0 Industry and Market Details......................................................................................................7
4.1 Carbonated Drinks Industry...................................................................................................7
4.2 Fast Food Industry.................................................................................................................8
4.3 Target Market.........................................................................................................................8
4.4 Porter’s Five Forces Analysis................................................................................................9
5.0 Market Strategy………………………………………………………………………………11

5.1 Pricing Strategy...................................................................................................................11


5.2 Social Media........................................................................................................................11
5.3 Marketing Mix.....................................................................................................................11
6.0 Operational Plan………………………………...……………………………………………13

6.1 Porter’s Value Chain............................................................................................................13


7.0 Management Team and Company Structure...........................................................................16
8.0 Financial Projections...............................................................................................................17
8.1 Profit and Loss Statement....................................................................................................17
8.2 Cash Flow Statement...........................................................................................................18
9.0 Risk Management....................................................................................................................19
10.0 Key Milestones......................................................................................................................22
11.0 Monitoring and Evaluation....................................................................................................22
12.0 Appendices............................................................................................................................23
12.1 SWOT Analysis.................................................................................................................23
12.2 Three Years Cash Flow Projection....................................................................................24
12.3 Three Years Sales Forecast................................................................................................25
12.4 Future Business Opportunities...........................................................................................25

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References......................................................................................................................................26

List of Figures
Figure 1: Naturee Brand Positioning……………………………………………………………...9
Figure 2: Social Media Marketing in Naturee…………………………………………………...11
Figure 3: Naturee Distribution Network…………………………………………………………13
Figure 4: Key Components of Risk Management Framework…………………………………..20

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2.0 Introduction

The primary goal of writing a business plan would be to present the value proposition of a
business concept in a structured manner so that prospective customers can understand it. The
possibilities that exist in the existing atmosphere were recognized as the first phase, and business
expectations were created to address the expectations opportunities. The right alternative was
then chosen after screening the defined business expectations using in qualitative and
quantitative approaches. The business plan for the established business concept was then
established. The marketing strategy, project schedule, management and strategic program, and
financial program are all included in the business plan. This report gives someone who is
concerned a good picture of the processes and the potential of the business concept.

3.0 Business Details

3.1 Company Introduction

As per new research, individuals in the south Asian region, especially Sri Lanka, have a greater
risk of developing heart disease at an initial point than persons in other parts of the world. This is
a fourfold increase in risk compared to the general population. As a result, this has now become
a critical topic. As we all recognize, junk foods, processed food, and instant foods come in a
variety of forms. That is the "complimentary food," that comes in the category of a sauce, a
spread, or a seasoning mix and is made entirely of chemical additives with no nutritional value
other than to add flavor. We saw a potential to form everything fresh, healthier, and sustainable

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as a result of this situation. Naturee is a condiment food items made entirely of organic
ingredients that has been clinically proven to lower cholesterol levels and prevent heart diseases
problems

 Mission

“To facilitate team Naturee culture of continuous performance, adopting best business practices
by developing high quality products for our customers and be the organic food manufacturing
company in Sri Lanka.”

 Vision

“Is to be Sri Lanka’s Premier Fruit and Vegetable Processing Company offering quality
Nutritious products of superior taste.”

3.2 Business Proposition

The organization's primary focus is on the manufacture of organic foods. To develop the Naturee
brand, the company plans to offer organic food products like, jam jelly, sauce, cordials, and other
commodities to its consumers. The organization's goal in creating this business proposition is to
manufacture and distribute organic food goods to both the local and foreign markets and also
ensure the availability of the products within physical and online platforms. The company
believes that organic foods can restrict all other fast-food items and chemical foods such as
carbonated drinks like coca-cola and Naturee products portfolio would help them enter a new
market and expand their business. By entering this emerging segment, the company hopes to
attract a new generation of buyers who are looking for goods that are both fresh and safe.

In this century where health issues are continuously considered, the company believes that
Naturee canned fruits and vegetables will indicate to the consumers regarding the freshness and
the natural taste. Consumers are losing interest in the nutritional side of junk foods and
carbonated beverages as a result of health issues, so the current market opportunity helps Naturee
even more. The industry is being propelled ahead by a rising general awareness of the health
threats involved with the materials utilized in other condiments, carbonated food items. Potential

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customers become more mindful of the value of consuming healthy organic products that are
sodium free, low in calories, and rich in fiber.

By referring those proposition benefits, Naturee is focused to position the organic food products
within local and international markets.

3.3 Business Strategy

The development of a company's fundamental long-term objectives and priorities, and also the
implementation of a plan of actions and the distribution of necessary capital to accomplish those
goals, are also part of the business strategy in Naturee. The company's overarching business plan
is to provide consumers with healthy organic goods that can be configured in whatever way
consumers choose at a reasonable value. By stressing the philosophy of freshness of the organic
foods, the Naturee assures which all of the food products meet health requirements and which all
orders are processed fresh, regardless of size. Originally started as a small enterprise, the firm
now focusing on the international markets such as Italy, USA, UK.

As a result, this business model is associated to the current business approach of providing jam,
cordial, sauce, chili paste guarantee that all of those items are produced using natural ingredients
in the most hygienic and nutritious way possible. The health risks of fast food and carbonated
drinks consumption, and also the long-term illnesses that could minimize through the Naturee
food products. As a result, Naturee is systematically engaged in producing all of the products in a
nutritious way, and under the motto of freshness, they ensure which consumers can consume the
goods safely. Consumers are turning away from carbonated drinks, other condiments and into the
eating of nutritious foods at this moment. Naturee gives its consumers the opportunity to eat their
favorite foods in a healthy and tasty way.

Naturee's corporate model is like that Naturee understand local and international consumer needs


and are sufficient to meet those needs in the most consumer-friendly and innovative way
possible.

4.0 Industry and Market Details

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The products and services provided by the industry, and also the market size, are described in the
industry review. The business research outlines the target market, as well as complementary and
replacement goods and the potential consequences.

4.1 Carbonated Drinks Industry

The carbonated beverage industry is one of the most profitable sectors. Quick


beverages behemoths, with chains all over the world, are still profitable and have developed a
strategic edge over small companies while presenting a larger challenge to their activities.
Internationally, carbonated drinks generate more than $800 billion in revenue, that is more than
the GDP of most countries. For the next five years, the sector is expected to grow at a 3% annual
pace, that is smaller than the long-term trend but also marks a rebound from a several years
recession.

Naturee will join the organic food products market, that works on a multinational scale, through
its latest business proposition. Naturee, as a small-scale operation, will face stiff rivalry from
carbonated drinks industry giants like Pepsi and Coca-Cola. Naturee's approach in dealing with
the market, on the other hand, is to emphasize the healthiness, freshness and goodness of the
goods in comparison to their competitors.

4.2 Fast Food Industry

When it is considering about the fast-food industry, it generates over $570B in revenue globally.


And their fast-food competitors such as Ms. Donald, KFC, Burger King mostly expected
increase their revenue more than 2% within next five years of period. One of major advantage of
these companies is the consumers evolving busy life style. But with those fast-foods, a lot of
consumers are facing several health issues such as heart problems, cancers due to chemical
sauce. In this situation Naturee can position the healthy, fresh, tasty food items such as sauce,
chili paste.

4.3 Target Market


 Segmentation

High Income Families


Low Income Families Middle Income Families
Average Monthly
Average Monthly Income Average Monthly Income
Income
Less than LKR 15,000 LKR 15,000
7 -70,000 More than 70,000
Urban Rural

Naturee basically segment the market according to the geographic and income bases and
according to geographic base market is divided into two major segments: urban and rural. And
also, as per the income base the market divided into three major segments: low, middle and high
income.

 Targeting

The company is aimed at a specific demographic of middle and high-income urban households.


This community of individuals consumes a lot of toxic items, and there is a rising awareness
among them regarding living a healthier lifestyle by eating nutritious meals. Purchasing organic
goods often comes at an expense, as organic crop cultivation is more expensive than
conventional crop cultivation. Purchasing organic goods often comes at an expense, as organic
crop cultivation is more expensive than conventional crop cultivation.

 Positioning

High Price

Naturee

Carbonated Natural
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Low Price

Figure 1: Naturee Brand Positioning

4.4 Porter’s Five Forces Analysis

 Threat of new entrants


It also raises the cost of manufacturing for newcomer by using natural ingredients rather than
using chemicals and also product differentiation required rather than standardized products.
Since most of the consumers are expected the product differentiation from food and beverages, it
is difficult to produce differentiated products and advertising those to make the awareness.
Moreover, capital requirement for purchasing the ingredients, machineries, human capital also
high and getting governmental license for food industry entrants also a strict procedure. As a
result, the threat of new entrants becomes a lesser power.

 Bargaining power of buyers

Consumers will be able to purchase new and less familiar cordial drinks, jam at a cheaper cost,
but the taste may be changed, and the consistency will not be assured. The customers care about
the nature of the items, and they make regular purchases. This indicates which business
consumers are less price conscious. Moreover, massive retailers, such as Arpico, have bargaining
power due to their large order volume, but their bargaining power is hampered by end-user brand
recognition. All of these factors make the bargaining power of buyers into medium power.

 Bargaining power of suppliers

In order to produce products, Naturee primarily needs fresh natural fruits specially mango, wood
apple, pineapple and also packaging equipment. Due to high demand on the Sri Lankan fruits in
export market, there is medium level bargaining power of those farmers. But due to the

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pandemic situation, there is less international market for those ingredients and suppliers
bargaining power also become lower than previously [ CITATION Bau13 \l 1033 ].

 Threat of substitutes
Main substitute for the products produced by the Naturee are fresh fruits and juices carbonated
beverages, like water, tea, energy drinks and etc. In certain cases, the change in cents from going
to a replacement for a consumer will be the deciding factor. The few replacements available are
of excellent quality, but they are significantly more costly. Naturee works in the industry
which sell at a cheaper price than alternatives while maintaining acceptable consistency. As a
result, customers are less likely to turn to alternative goods. This indicates that the danger of
alternative products in the industry is low [ CITATION Ger18 \l 1033 ].

 Rivalry among existing competitors


In the market in that Naturee works, there are very few large-scale rivals such as Naturee,
Edenborough which has considerable amount of market share. The majority of those are also
very high. This ensures that no change by a company in the industry can go unnoticed. As a
result, current firm competition becomes a medium force in the sector.

5.0 Market Strategy

5.1 Pricing Strategy

The prices of the goods are set in accordance with the requirements of the clients. The rates are
set based on the cost of manufacturing, including distribution fees. Price levels can vary
depending on the amount of order and providing discounts. However, price rates will be adjusted
based on the types of the consumer market demographic, their shopping habits, and
the purchasing ability. The prices of the latest goods such as dessert items will be set in
accordance with demand and business rates as they are introduced.

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5.2 Social Media

Figure 2: Social Media Marketing in Naturee

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5.3 Marketing Mix

 Product
A food product which is mixed into other foods to improve the taste, improve taste, or complete
the meal. It can be used by the eater or inserted before the meal is served. Examples of product
items:

- Chutney
- Sauce
- Ketchup
- Chinese chili Paste
- Fruit Juice

Conventional Sri Lankan condiment foods are strong in sodium, extra sugars, and/or fatty and
trans-fats. As a result, health experts advise customers to utilize them sparingly, offer those on
the hand for the eater to add, or replace those with healthier options.

 Price

The product line's main consumer segment is middle and higher-income households. As a result,


Naturee is a premium commodity. As a result, the product line's price policy would be Value
Based Pricing, that is pricing dependent on the customer's view of value. The purchaser's view of
a commodity is influenced by all facets of it, namely non-price considerations like consistency,
nutritional content, and reputation. Because the central benefit of the commodity is healthfulness,
and utilizing natural products comes at a considerable expense, Naturee can charge a premium
price utilizing a value-based pricing approach. Because natural ingredients are far more
expensive than chemical-based ingredients, customers would have confidence which the goods
are fully natural. Because consumers demand this price level from natural goods, the great price
would have no direct impact on sales value. The product would initially target the business-to-
consumer industry. However, even as company grows, sachet packets will become obtainable.
The price of a sachet SKU would be decided by request.

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 Place

Naturee caters to a more affluent clientele. It will be a B2C (Business-to-Consumer) company.


As a result, a drive approach is used to get the commodity closer to the end user. Supermarkets
will become the primary distribution outlet.

Figure 3: Naturee Distribution Network

Naturee has a strong client base, which is perfect for the company's need to serve high-end
clients. However, only purchase registered natural items from third parties for its business. To
achieve approval, the development must undergo 6 months of careful inspection. As a first move,
Naturee will be accessible in the online retailer Kapruka, Daraz for customers who choose to buy
online. Because several rival goods have a delivery network in this region, it is critical to get to
the internet marketing markets [ CITATION Mar16 \l 1033 ].

 Promotion

Naturee’s branding strategy would mostly concentrate on social media marketing. Natural goods'
health advantages and the taste of natural ingredients can be seen as a powerful marketing tactic.
Its most powerful and cost-effective way to raise consciousness of the commodity and its
advantages would be by social networks. Evaluating active businesses' web marketing strategies
is critical for gaining a strategic edge. Another successful advertising strategy for Naturee is in-
store sales. For an example, consumers will be offered the chance to sample sandwiches
produced with Naturee products. Consumers who are able to purchase the commodity may be
offered exclusive deals.

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6.0 Operational Plan

6.1 Porter’s Value Chain

Primary Activities
 Inbound Logistics

These Naturee activities are concerned with acquiring, preserving, and distributing product raw
materials. Raw material storage, tangible product warehouse management, and infrastructure to
collect and store consumer details for an electronic media business are all possibilities. Also, it
includes the not only the product manufacturing, packaging, labeling, also related to the inbound
logistics.

 Operations

Actions which aid in the transformation of raw materials into finished goods such as sauce,
cordial, jam and etc. In order to carry out the activities, the use of consumer information to serve
ads to consumer based on their use patterns. The manufacturing plants of the Naturee is situated
in Colombo and Attanagalla and now most of the operations are automated [CITATION Tha \l
1033 ]. 

 Outbound Logistics

Those operations are carried out by Naturee in order to sell manufactured products to distribution
channels and ultimate consumers. Distribution network, planning, sorting, wholesalers and
retailers order completion, and logistics are all examples of outbound logistics operations.

 Marketing and Sales

Naturee engages in these practices in order to provide avenues for customers to purchase a
company's goods. Advertising and promotion, pricing, publicity, channel selection, sales team
development, and other practices are examples of those practices.

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 Services

For the products to be used successfully, Naturee must provide after-sales operation and
maintenance. Education, component supply, implementation facilities, product forward as well
as downstream integration, and post-sale services are all examples of Naturee’s service actions.

Support Services

 Firm Infrastructures

Naturee firm infrastructure related tasks include scheduling, legal assistance, quality control,
finance management, and corporate development. Specially, finance management are handled at
the organizational level at Naturee, and quality control, accounting, and legal matters are
controlled at the business level [ CITATION Pib17 \l 1033 ].

 Procurement

Procurement operations at Naturee require purchases of materials utilized by the company's


supply chain. It excludes the cost of purchasing materials themselves. It also includes
acquiring supplies, equipment, scientific instruments, household appliances, and buildings. 

 Technology

Almost every activity in a modern company is supported by technology. Field research on food
technologies, technology planning, procedure engineering, growth mechanism, and feature
design are the major technology creation at Naturee.

 Human Resources

At both the business levels and organizational levels, Human Resource Management support


activities involve Hiring, Selection, People Planning, Skill Assessment, Training &
Development, Employment, and Incentives. There are more than 1000 workers work in the
Naturee and they are assigning into different functional areas of the organization. All the
requirements of those employees should be monitored by the HR department and need to
accommodate by discussing with the top management [ CITATION Elv16 \l 1033 ]. 

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7.0 Management Team and Company Structure

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8.0 Financial Projections

8.1 Profit and Loss Statement

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8.2 Cash Flow Statement

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9.0 Risk Management

The organization's centralized and comprehensive risk management process serves to mitigate
the negative effects of uncertainties, allowing it to better access market possibilities and improve
its long-term competitive edge [ CITATION Ter16 \l 1033 ] . The vision, mission, strategy, core
principles, community, and strategic goals of Naturee are central to risk management. The
Executive board, Auditor's Report, Group Corporate Boards, Risk Boards, Risk Management

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Team, and Auditing Team make up the greatest level of responsibilities. Risk management is
overseen by the Naturee Board of Directors, with many of its duties assigned to Board Members.

Figure 4: Key Components of Risk Management Framework

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Figure 5: Key Components of Risk Management Framework

10.0 Key Milestones

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11.0 Monitoring and Evaluation

It is important which the company has a structured methodology to track the success of


the business plan after it has been implemented. A group must be assigned to regularly track the
corporation's performance and, as a result, conduct market analysis while assessing the threats
and opportunities which may be presented to the company.

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12.0 Appendices

12.1 SWOT Analysis

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12.2 Three Years Cash Flow Projection

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12.3 Three Years Sales Forecast

12.4 Future Business Opportunities

 Organic food farming

If the organization is knowledgeable on organic farming, it can be provided the gardening


services to others. It can be assisted other organizations in growing the own fruits and veggies as
well as other crops.

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 Sales of Organic Manure

The company has an opportunity of making fertilizers and then selling it commercially. It must
gather recyclable polymers that must be pasteurized. After that, it can sell organic fertilizer to
growers, farmers, and other organic agriculture retailers.

 Bath & body goods made from organic ingredients

Skin care goods are made from a variety of organic plants and herbs. It may establish a
company selling organic bath and body goods made from a variety of organic goods. Make
it own organic skincare line for utilize in baths and other body goods.

References

Aven, T., 2016. Risk assessment and risk management: Review of recent advances on their
foundation. 23(1).

Bruijl, G., 2018. The Relevance of Porter's Five Forces in Today's Innovative and Changing
Business Environment. SSRN Electronic Journal.

Išoraitė, M., 2016. MARKETING MIX THEORETICAL ASPECTS.

Mateljak, Ž. & Mihanović, D., 2013. Operational planning level of development in production
enterprises in the machine building industry and its impact on the effectiveness of production.

Piboonrungroj, P., Williams, S. & Simatupang, T., 2017. The emergence of value chain thinking.
International Journal of Value Chain Management, 8(1).

Sumpio, B. E., 2013. Application of Porter's Five Forces Model and generic strategies for
vascular surgery: should be stuck in the middle?.

Thabit, T. H. & Raewf, M., 2018. The Evaluation of Marketing Mix Elements: A Case Study.
International Journal of Social Sciences and Educational Studies, 4(4), pp. 100-109.

Zamora, E., 2016. Value Chain Analysis: A Brief Review. Asian Journal of Innovation and
Policy, 5(2).

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Risk Description Likelihood Impact Rating Priority Mitigation Plan
Rating Rating
Inflation in costs of 4 5 20 Provide contingency on estimated cost
labors and ingredients
Non availability of 2 5 10 Staff training and motivation
sufficient skilled labors
Delay in material 4 5 18 Implement procurement
procurement and
delivery
Delay in payment 2 4 10 Timely processing of payment
Progress
Occur of disputes 2 4 8 Assess disputes procedure & manage dis
Assess & manage effectiveness of disput
process.
Insufficient utilities 1 4 4 Determine requirement and seek alternat
Language barriers 1 4 4 Communication awareness sessions
Worker’s strike 1 5 5 Leadership to control conflicts and ensur
timely payment
Delay in approval by 4 5 18 Assign dedicated consultant staff
Gov. authorities
Selection of poor 3 5 15 Prepare Prequalification plan
contractor

Mrs. Harsha Liyanage – Mrs. Harsha who is a member of Charted Institute of Management Accounting
Head of the Finance (UK) has the required knowledge to ensure the financial health of the business.
She will responsible in preparing financial reports and developing strategies
and plans for long term and short-term financial goals.

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Mr. Nuwan Ekanayaka – One of core business activity of Organica, production of organic condiment
Head of the Production products is in the hands of Mr. Nuwan. He will responsible for planning and
delivering the production in order to satisfy the consumer needs.

Mr. Thilak Perera – Head of Mr. Thilak is responsible who possess excellent planning skills, is responsible
Logistics for procurement, stock control, warehousing and distributing the products to
the consumers. He will ensure that right products are delivered to right place on
time and correct quality.

Mr. Kelum Jayasinghe – He is responsible for delivering value proposition of Organica to its customers
Head of Sales and Marketing developing marketing plans and sales plans that align with the business
strategy.

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