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FINAL PROJECT REPORT

MANAGING THE ENTREPRENUERIAL VENTURE

“GREEN CRUSH”

Submitted by

Group# 06

Abdur Raheem Chhotani

Sharmeen Fuzail

Bilal Khan

Rabica Faryal

Muhammad Imran

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Contents
ACKNOWLEDGEMENT ............................................................................................................................................ 4
I. EXECUTIVE SUMMARY................................................................................................................................... 5
II. BUSINESS PLAN SUMMARY ........................................................................................................................... 6
THE BUSINESS............................................................................................................................................................6
THE MARKET .............................................................................................................................................................6
Target market .......................................................................................................................................................6
Marketing strategy ...............................................................................................................................................6
THE FUTURE ..............................................................................................................................................................6
Mission Statement ................................................................................................................................................6
Vision.....................................................................................................................................................................6
III. OUR PRODUCT .............................................................................................................................................. 6
CURRENT SITUATION .................................................................................................................................................7
DEMOGRAPHIC AND GEOGRAPHIC SEGMENTATION....................................................................................................7
POTENTIAL MARKET ..................................................................................................................................................7
IV. MARKET SEGMENTATION & SELECTING TARGET MARKET ......................................................................... 8
TARGET MARKET BASED ON DEMOGRAPHICS INCLUDES ...........................................................................................8
Company impact ...................................................................................................................................................8
Company strategy .................................................................................................................................................9
Competitor ............................................................................................................................................................9
Market trends .......................................................................................................................................................9
V. SUMMARY OF SITUATION - SWOT ANALYSIS ............................................................................................... 10
INTERNAL ................................................................................................................................................................10
Strength ..............................................................................................................................................................10
Weaknesses.........................................................................................................................................................10
EXTERNAL ...............................................................................................................................................................10
Opportunity .........................................................................................................................................................10
Threats ................................................................................................................................................................10
MARKETING STRATEGIES ..................................................................................................................................... 11
PRODUCT .................................................................................................................................................................11
AUGMENTED PRODUCT ............................................................................................................................................11
Features ..............................................................................................................................................................11
HYGIENE ..................................................................................................................................................................11
Packaging............................................................................................................................................................12
Price ....................................................................................................................................................................12
Price Structure (Consumer price) ........................................................................................................................12
TARGET CUSTOMERS ...............................................................................................................................................12
POSITIONING ............................................................................................................................................................12
POSITIONING STATEMENT ........................................................................................................................................13
Point of party ......................................................................................................................................................13
Point of difference ...............................................................................................................................................13
VI. DISTRIBUTION ......................................................................................................................................... 13

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DISTRIBUTION CHANNEL .........................................................................................................................................13
DISTRIBUTION STRATEGY ........................................................................................................................................13
VII. PROMOTIONAL STRATEGIES.................................................................................................................... 14
MARKETING MIX .....................................................................................................................................................14
Newspapers .........................................................................................................................................................14
Television ............................................................................................................................................................14
Social media........................................................................................................................................................14
Promotional Vans and Activities.........................................................................................................................14
UNIQUE SELLING PROPOSITION (USP) .....................................................................................................................15
MARKETING COMMUNICATION ................................................................................................................................15
MARKETING RESEARCH (R & D) .............................................................................................................................15
VIII. OPERATIONAL STRATEGY AND ACTIVITIES .............................................................................................. 16
BASIC AND PRESUMPTION ........................................................................................................................................16
IMPLEMENTATION SCHEDULE ..................................................................................................................................16
PRODUCTION CAPACITY ..........................................................................................................................................16
IX. FINANCIAL STRUCTURE................................................................................................................................ 17
TOTAL PRODUCT COST .............................................................................................................................................17
X. PROFIT AND LOSS STATEMENT .................................................................................................................... 18
FOR THE YEAR ENDED 31ST DECEMBER 2020 ....................................................................................................... 18
XI. KEY MANAGEMENT PERSONNEL ................................................................................................................. 19
PURCHASING AND LOGISTICS ...................................................................................................................................19
PRODUCTION AND FINANCIAL OPERATIONS .............................................................................................................19
MARKETING .............................................................................................................................................................19
WAREHOUSE MANAGEMENT AND SALES .................................................................................................................19
XII. MACHINERY REQUIREMENT .................................................................................................................... 20
XIII. CAPITAL INVESTMENT ............................................................................................................................. 21

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Acknowledgement

We would like to express our appreciation to all those who helped make this research successful.
We would also like to give gratitude to our facilitator Mam Mehwish Zafar who guided us and
provided us the possibility to complete this report.

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I. Executive Summary
This report explains the marketing plan for launching a sugarcane Juice named “Green Crush”.
This product has been made by the Freshwater. In the very beginning of the report, we have
explained the mission and vision of the Sugarcane juice and then we have further carried out our
activities to achieve our goals and objectives. It will be introduced in the market with the help of
various promotional displays, advertisement, and distribution of free samples to the public and
financial institution. This report examines that this product is initially launching in Whole Pakistan
domestic market. The study included both primary and secondary research. We have conducted
SWOT analysis of the company to see the company’s strengths, weaknesses, opportunities, and
threats. Then we have explained the purposes, benefits, and objectives of our product.

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II. Business Plan Summary
The Business

• Business name: Green Crush


• Business structure: Partnership
• Business owner(s):
• Abdur Raheem. Rebecca Faryal, Bilal Khan, Sharmeen Fuzail, Muhammad Imran
• Products/services: We are selling Sugarcane Juice in bottles.

The Market
Target market
People in cities and to middle- and higher-class people because they can afford this product.
Marketing strategy
Just as ice creams are very popular during summers and have high demand, similarly sugarcane
juice is high on demand during summers. You can find many sugarcanes juice shops and street
vendors selling it in the market during summers and huge crowd to drink it. If we talk about
winters, then the demand for this juice is quite low during that season. But by selling this juice
during summers you can earn huge profits. We have told you before about the business of making
jiggery out of sugarcanes, now you can earn profit by sugarcane juice business.

The Future
Mission Statement
To refresh the people of all ages with our product. We want to be at the top in the field of juices
and breweries.
Vision
To evolve as one of the best Producer of quality sugarcane, which is organically, grown extract
juice scientifically and, serve totally natural healthy and hygienic DESI refreshment in the world
and continue to retain the position.

III. Our Product


Our product is basically a sugarcane juice in a bottle. The product will be enjoying a monopoly in
the market as there is no existing sugarcane juice in the form of bottle packaging in the market but
if we see as overall market than there is no monopoly for this juice because this juice has been sold

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on the roadsides by crushing the sugar cans with machines in the glass. Sugar cane juice is a healthy
alternative to refined sugar. While both sweeteners are made from sugar cane, evaporated cane
juice does not undergo the same degree of processing that refined sugar does. Therefore, unlike
refined sugar, it retains more of the nutrients found in sugar cane. Sugar cane juice is a highly
refreshing drink. It contains about 15 per cent natural sugar and is rich in organic salts and
vitamins. Fresh sugar cane juice has no preservatives, however its tendency to turn black from
oxidation soon after pressing is very high, so to secure from oxidation we should pack in airtight
packaging.

Current Situation
• Market Definition
• Market Analysis

Demographic and Geographic segmentation


• Age: 3+ Years
• Gender: Both male and female
• Income: All social classes except lower class
• Geographic: We are targeting only in Karachi
• Market Needs: In summer people of all ages take soft drinks and juices to reduce their
thirst. So, Sugarcane juice in bottle is highly demanded by customers because it reduces
the thirst, and it is useful for healthy life because it is hygienic and pure. So, when it is
highly available at affordable price at everywhere customers will use Sugarcane juice than
soft drinks because it has no side effects, and it is safe.
• Total population: As our current target is only Karachi so total population will be almost
10 million people.

Potential market
As if we look at the market of Karachi huge number of people are interested in consuming liquid
products as their daily usage products like juices. The sugar cane juice is available on the roadsides,
but they are not much purified which is block between the juice and the upper-class customers
which are basically loyal to quality specially. So the probability of marketing Sugarcane juice to
potential customer as upper class or quality loyal customer will be high. If we look overall our

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potential customer are almost all of the people in the country from lower middle class to upper
middle class.

IV. Market segmentation & Selecting Target Market


According to market segmentation our target market are the people of almost all the classes starting
from lower upper to upper class. As according to the demographics people use to drink the
sugarcane juice in the summer season. As this product is particularly for summer season because
it only tastes well in hot climate. And consuming it in winter doesn’t suits the mind of people
because people tend to consume hot products like coffee and tea.

Target Market based on demographics Includes


• Individuals with age 3 years and above
• Individuals across all income groups
• Working and non-working individuals
• Students
• Institutions and offices
• Restaurants and hotels
Psychographic Segmentation
According to psychographic segmentation we targeted people who are:
• Health-conscious customers
• Customers who have preference towards Nature and natural products
• Quality conscious customers
• Customers who have diverse tastes
• Nonusers and potential users
Company impact
Sugarcane juice is widely used because of its sweet taste and being a solution to different health
problems. The cost of production and raw material is not so much. It needs not to be marketed so
much because it’s a new thing which people will try and love a lot. Simply we can place it in
universities cafeterias, gourmet franchises and grocery shops, the only thing we must do is to
ensure its shelf life and longtime preservation time.

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Company strategy
In first year, our company will market in Karachi. Karachi will be sole market for first year. Then
looking through our sales history we will expand our business opportunities to other big cities of
Pakistan. More products that will be processed in same way and will be included in product line
after making a good repute in the history.
Competitor
Our competitors are the roadside sellers of sugar cane juice. But the substitute products are another
big competitive force affecting our product in the market. Substitute competitors include
Manufacturers and producers of:
• Branded and unbranded fruit juices
• Fruit based milk drinks
• Natural mineral water
• Fruit shakes
These substitute products are totally different in nature from the sugar cane juice but still it’s a
substitute because these are also cold juices.
There are some factors which differ allot between our juice and roadside juice seller’s juice who
are the main competitor of Green Crush:
• We are different from roadside sellers because
• Our juice is a purified and quality assured product.
• We offer juice in a sealed bottle packing whereas roadside sellers are delivering the product
in the glasses.
• We have quality standards and can turn customers from the road to our outlet through
effective marketing strategies.
• Due to lack of packing roadside sellers are not easily available everywhere. Whereas our
product is available in every general store in almost Karachi.
Market trends
In target market there is trend of soft drinks and juices. People use juices to have a fit life and to
serve their guests as well. Because juices are hygienic and nutritious and have a good taste then
soft drink. In summer its usage is more so the availability should be increased to meet the demand
of customers.

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V. Summary of Situation - SWOT Analysis
Internal

Strength
First opportunity that we enjoy is that we are playing a monopoly in the means of sugar cane juice
in the form of packing in Pakistan.
As for first producer of sugar cane juice in bottle packing in Karachi, we can make our customer
loyal to our product in the means of brand, quality, and price by making effective marketing
strategies.
Weaknesses
As the juice is fresh and no artificial flavors are used in the production of the juice. So, juice has
not long-lasting life.
The life of juice is 30 days which creates barriers for not buying juices in bulk for home use, but
life can be extended if placed frozen.
External

Opportunity
As for new product in the market we can make huge number of profits from the market.
We can introduce flavored sugarcane juices. E.g., mint, and ginger flavor, this in results can
increase the sales to earn more profits to the organization.
Threats
Due to growth in inflation rate in Pakistan the intermediary goods are getting expensive which
lead to an increase in price in future and increase in price leads to a loss of customer from the
lower class of our target market and price conscious customers as well and may affect sales by
turning to substitute and competitive goods.
Our product is especially for summers so there is low number of sales in winter season. So high
marketing costs are required to increase sales in winter season.
There are no many entry barriers so a large numbers of local juices enter in juices market.

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Marketing Strategies
Product

Pure and attractive product package in safe eco-friendly packages which are appropriate to use.
Packages would use eye-catching color schemes and would highlight the product name and the
logo with all required information about its wholesome value.
Different color arrangements to be used for different variants mentioned earlier.
Core Benefits– Core benefit means the services and benefits the customer is really buying.
Our customer fulfills its need of thrust and refreshment by buying our “Green Crush” juice. Juice
as being a pure sugarcane juice without any artificial flavors is also a core benefit of our product
Augmented Product

• Products that include design, features and packaging that go beyond consumer expectations
and differentiate the product from competitors.
• Our juice taste and flavor is according to the customer expectations because we provide
• 100% pure juice.
• We have no compromise with quality
Following things include in the sale of product:
Design – The design of sugarcane juice that it will be in attractive and stylish tetra pack in
following size:
• 250ml
• 500ml
Features – The features of our product are:

Hygiene

We have presented sugarcane juice in bottle pack for the first time. So it is beneficial
For us to have more customer at the than other new entrants because the time the take to enter
The market the customer will become devoted to our product.
• Use full for healthy life
• Good in taste
• Help to digest food

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• Everyday Energy
• Available in different flavors in future.
Packaging
Our product will be in bottle packaging and is airtight sealed so the juice could survive for some
period. The design of our packing is attractive and eye catching.
Price
The price of the product can also influence the buying behavior of the consumers because in
Pakistan there are different level of classes based on the income difference so price is the one of
the important factors, some of the consumer can afford the price and others can’t, so we must set
the price of the product that is afforded by all the social classes of the region. So we use penetration
pricing strategy. If we look at the middle till lower class in Karachi all of the people are highly
price conscious.

Price Structure (Consumer price)


250ml – Rs.50

500 ml – Rs.90

Target Customers
Our potential customer will consist of every kind of individuals. However, we will segment our
market based on their priority and attributes towards hygienic products.

• Students at every level from school to universities


• Employees who works entire day
• Households and passengers

In summer session every kind of people with no age limit use this juice because of unhygienic
products most of the people avoid this. We will specially target those kinds of people.

Positioning
Brand strategy is at the heart of marketing strategy. It is the act of designing the company offer
and image so that it occupies a distinct and valued place in the target customer mind. Sugarcane
juice is very beneficial for health and provides refreshment. As we are launching sugar cane juice

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in bottle packing, so we want to create positive and long-lasting image in the minds of customers
that we are providing hygienic juice because we are also introducing new flavors like mint and
ginger etc.

Positioning Statement
For every individual, who wants a 100% natural product that gives rejuvenation and freshness, the
Sugarcane Vita could be a packaged drink that has energy and refreshment at affordable prices,
excellent quality, and value for your money.

Point of party
Different flavor bottle packing
Point of difference
100% pure juice

VI. Distribution
The place of the distribution and availability of the product also influence the buying behavior
because if the product is in reach of the consumer, he will prefer it and if it is hard to find the
product in the market, he will never buy that product. So, we have effective distribution strategies
by making distributors in every city and provided them with number of facilities like order bookers
and salespersons and a supervisor. And we allow our distributors to supply product to both
wholesalers and retailers. Because of this our product will be available at more shops and our sales
will increase.

Distribution Channel
We select the standard marketing channel to distribute our product. Our juice is going to be
distributed by the desired distributor, which is going to be selected by the organization, the chosen
distributor will then supply the juice product to the wholesaler and also to the retailer and therefore
the consumer will collect the product from the retailers.

Distribution Strategy
We chose the Selective distribution for our product. We will supply our product first in Karachi as
it is the most suitable place based on our product demand and so that the consumer can get the

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product easily. Furthermore, we will then slowly start distributing to other cities who have a high
consumer.

VII. Promotional Strategies

Marketing Mix
The promotion of the product i.e., the advertisement, sales promotion and other promotional tools
can change the buying behavior because some of the individuals highly influenced by the
advertisement of the product. We have decided to use integrated marketing communication in
which there will be blend of different marketing promotional tools that will convey clear and
consistent message of our product to the customers.
These Promotional tools which are given below:

Newspapers
Newspaper has the widest readership and circulation among our targeted market; these would carry
most of the advertisements for the publication media. Also, the print ads will be published in other
much read newspapers like be designed, i.e., half page and quarter page.

Television
Tele commercials will be aired on sports channels and news channels as the viewer ship
Of these channels is highly common among the targeted market.

Social media
Nowadays social media is the core element of product marketing. Social media will be our most
permanent and long-lasting form of advertisement.

Promotional Vans and Activities


Promotional vans would be deployed on public places which would distribute sugar cane juice for
free giving out the message of being an instant energy drink. This campaign of free sampling
would last for three months at least in order to make people aware of the benefits and the attributes.
Also all the delivery vans distributor have will be printed by the advertisement of sugarcane juice.
Promotional Activities includes the display of juice in the retail shops by paying retailers or giving
discount on the juice. And deploying stalls outside or inside the shop so to bring in the product to

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the customers who came to the retail shop for purchasing and create awareness in them for the
purchase of Green Crush Sugar cane juice.

Unique Selling Proposition (USP)


The unique selling point of our product is that it’s presented in an attractive bottle which is
affordable and healthy for the target market.

Marketing Communication
By integrating all messages in all media, we will reinforce the brand name and the main points of
product differentiation. Research about media consumption patterns will help our advertising
agency choose appropriate media and timing to reach prospects before and during product
introduction. Thereafter, advertising will appear on a pulsing basis to maintain brand awareness
and communicate various differentiation messages. The agency will also coordinate public
relations efforts to build the Sugarcane-Vita brand and support the differentiation message. To
generate buzz, we will host a user-generated video contest on our website. To attract, retain, and
motivate channel partners for a push strategy, we will use trade sales promotions and personal
selling. Until the Sugarcane-Vita brand has been established, our communications will encourage
purchases through channel partners rather than from our website.

Marketing Research (R & D)


An added source of market research is a feedback tool based on a suggestion card system. The
suggestion card has several statements that consumers are asked to rate in terms of a given scale.
There are also several open-ended questions that allow the consumer to freely offer positive
criticism
The “Sugarcane-Vita juice” will work durable to implement rational suggestions to improve their
service offerings, as well as show its assurance to the consumer that their suggestions are valued.
The last source of market research is reasonable analysis. The consumers will send people to local
entrants to gain information about their product offerings.

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VIII. Operational Strategy and Activities

Bottles of Sugarcane-Vita

Basic and Presumption

• The unit proposes to work at least 200 days per annum on single shift basis.
• The unit can achieve its full capacity utilization during the 3rd year of operation.
• The wage for skillful workers is taken as per usual rates in this type of industry.
• Interest rate for total capital asset is calculated @12% per annum.
• The entrepreneur is estimated to raise 20-25% of the capital as margin money.
• Costs of machinery and equipment are based on normal prices enquired from machinery
maker.

Implementation Schedule

Project operation should take a period of 10 months. Break-up of the activities and relative time
for each activity is shown under:

• Scheme preparation and approval: 02 month


• SSI provisional registration: 02-03 months
• Sanction of financial supports etc.:03-07 months
• Installation of machinery and power connection: 07-10 months
• Trial run and production: 01 month

Production Capacity

• Quantity: 2500-3200 liters/day


• Value: Tk. 12 lac
• Installed capacity: 8 lakh bottles/annum
• Working days: 200/annum
• Optimum capacity utilization: 70%
• Manpower: 25
• Motive power: 20 kWH
• Water: 10 kL/day

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IX. Financial Structure

Variable cost Rupees

Direct Material 70

Direct labor (25*1*10) 250

Indirect material 50

Indirect Labor 51000

Fixed cost

Manufacturing cost 100,000

Sales and promotion cost 100,000

Total product cost


500 ml – Rs.65
250 ml – Rs.35

Per bottle profit: 500 ml – Rs.17

Per bottle profit: 250 ml – Rs.12

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X. Profit and loss statement

For the year ended 31st December 2020

2021

Revenue from sales


Gross Revenue(1500*365days) 547500
Cost of goods sold
Gross profit
Operating expenses:
Rent 30000
distribution 45000
Administrative salary -
Miscellaneous -
Advertising expense 200000
Depreciation 60000
Total Operating Expense: (335000)
Operating Profit Before Interest and Tax: 212500
(-) Interest expense (30000)
Operating Profit before tax 182500
(-) Income tax 25% on profit before tax (45625)
Net Profit 136875

• Advertisement Cost
• Digital Marketing
• Research Cost
• Hiring Cost
• Distribution Cost
• Packaging Cost

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XI. Key management personnel

4 important departments will be there:

Purchasing and logistics


Mr. Imran as one of the directors of Green Crush will be responsible for all operating materials
purchases at best possible rates and delivering at the appropriate time, use of just in time inventory.

Production and Financial operations


Miss Rebecca Faryal one of the directors of Green Crush will be responsible for qualify production
process. She will also be responsible for financial records and accounting.

Marketing
Mr. Raheem Chhotani one of the directors of Green Crush with another director Mr. Bilal Khan is
responsible to design promotional campaigns and do artwork for advertisement. Their main task
is to work in celebration with sales department to create demand opportunities and find out new
market segments.

Warehouse Management and sales


Miss Sharmeen Fuzail one of the directors of Green Crush will be responsible for managing
finished goods inventory in Karachi. Warehouse and office and to go generate sales per decided
and approved credit terms from financial department.

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XII. Machinery requirement
We use few kinds of machinery in our industry. Like crusher machine for crash sugarcane, filter
machine for filter the crushed juice, labeling machine, can lid machine etc. Our plant capacity will
be 2500-3200 Liters per day.
Preservation system for sugarcane
Aqueous ammonia (28% NH3 w/v) was mixed with 500ml batches freshly extracted sugarcane
juice at level of 0, 0.5, 1.0, 1.5, 2.0, 2.5 and 30% (w/v). the mixture was at a room temperature is
sealed glass containers for 7-day period to measure changes in pH and Brix of the juice.
Result for pH & Brix during 7 days after treatment are shown in Table 1. It gives the trends in
these measurement for aqueous ammonia level of 0, 0.5, 1.0, 1.5 and 2%. Results for higher
concentrations were identical to those for 2% aqueous ammonia. It is obvious that ammonia works
well as a preservation especially if high level is used, at level above 2% w/v the juice becomes less
palatable for cattle and such situations if should bereft to stand until the excess ammonia dissipates.
It has been suggested by Leng and Preston (1976) that the optimum level of available nitrogen in
the rumen to ensure optimum synthesis of microbial protein in 3 g N/100 g of fermentable organic
matter. Taking this case of cane juice at 14 Brix, then this world requires about 1.5% (w/v) of
aqueous ammonia (28% NH3 w/v) in order to provide the required amount of available nitrogen
for microbial protein synthesis. In the experiment reported here, the inclusion of from 1.5-2.0%
aqueous ammonia in the sugarcane juice, thus provided the necessary amount of Nitrogen for
rumen systematic protein and also preserved the juice over 25 days.
Another method is Sodium benzoate is a substance which has the chemical formula C6H5COONa. It is a
widely used food preservative, with an E number of E211. It is the sodium salt of benzoic acid and exists
in this form when dissolved in water. It can be produced by reacting sodium hydroxide with benzoic acid.

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XIII. Capital investment

Investment BDT
Warehouse equipment’s 30,000
Plant & machinery 440,000
Labeling machinery 90,000
Bottle lid selling machinery 110,000
(3) Employee’s salary (17000*3) 51,000
Total 721,000

Operating investment before earning BDT


4 months Of warehouse maintenance 20,000
Wages for approx. 2.5 months 100,000
Approximate initial recruitment cost 20,000
Initial utility bills 40,000
Total 180,000

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