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Business Plan - Presentation Transcript

1. Business plan on packaged water manufacturing Guided by: Prepared by: Mr. Rajat Dutta Siddharth Shanker Sharma Lecturer ISMC, Noida ISMC, Noida 2. Executive summary o Who  Clear water Pvt. Ltd. o What  Setting up a plant to produce the packaged water for the UP and Uttrakhand. o When  From the next year plant will start producing (by 2008). o Where  In Uttrakhand and U.P. 3. Executive summary o Why  To provide the people of U.P. And Uttrakhand a low price packaged water but without compromising the quality. o How  By reducing the manufacturing cost and availing the mass production benefits. 4. Executive summary o Management  The company is a private company which will be operated with the selection of one operational officer whose tenure is of 3 years. He is responsible for all the operation of the company and will have the following responsibilities:  To make the company operational.  To provide funding from various money suppliers.  To co-ordinate with all the departments heads.  To submit company growth report to the owner and also take his help in any crucial decision. 5. Executive summary o Business objective  To provide people a low price packaged mineral water.  To maintain similar quality level.  To achieve economies of scale by mass production.  To make the company popular in the other parts also after succeeding U.P. and Uttrakhand by setting some other plant. The company is planning to cater the north Indian packaged mineral water market. 6. Executive summary o Financing  The company is planning to get the loan from the banks, Govt. bodies and private money providers. 7. Companys Vision 2008

Company is oriented to achieve the sales within first month 12 lacks units of the 1 litre bottle and for the first year is to achieve 1.5 Crore units. o Companys positioning  Pure water for deserving people. 8. Companys Mission o Clear water Pvt. Ltd. is committed to provide people a low price mineral water having maintaining the same quality level. The company wants to create a brand name which would be seen as the synonyms to the mineral water.  Company is also planning to expand its business in north India by setting up more 3 more plants in Punjab (1) and Himanchal Pradesh (2). 9. Company summary o The company is private company which will start operating by setting up a plant and funding money from the private money vendors, Govt. bodies and banks. 10. Company summary o Financial overview  Costs occur:  Fixed assets require (initial investment)  Land: 1.25 Crore (12000 square meter @1,000 RS. Per Sq. Meter including the registration and legal expense of RS. 5 lacks).  Manufacturing Plant: 1.25 Crore (including installation charges and transportation expenses of 25 Lacks).  Packaging plant : 50 lacks.  Variable expenditure:  Cost per unit of 1 liter bottle. 11. Plant information o Cost of the plant: 1.25 crore. o Plant capacity: 50,000 bottles per day. o Depreciation rate: 10%. o Plant requirement: 100 laborers. o Plant locations: Tehri (Uttrakhand). o Land require: 12000 sq. meter. 12. Company summary o Liabilities :  The company will get the loan from the both banks, private money lenders and governments small industrial loan providers. 13. Product o The name of the package mineral water will be Bhagirathi. o The company is mainly oriented to manufacture 1 ltr. Mineral Bottle. The basic attribute of the product are as following:  Priced at Rs. 10.  Level of quality is exceptional.  Product is basically targeted for the common Indian people who are not getting the good water resulting into many diseases. 14. Companys analysis o SWOT Analysis

The weakness of new in the market may cause a threat of competition but the company is confident enough to turn it into the opportunity by capitalizing on its strengths. The basic threat to the company is the company is not too much experience in the market so competition might hit it so the company adopted a strategy of differentiation by getting the low cost benefit. Threat The weakness is only not experience in the market as the company is new. This is the opportunity for the company to cater the market. The low price Manufacturing is the strength of the company. The quality is also exceptional. This will provide company a opportunity in the not fully explored market. Opportunity Weaknesses Strengths Internal/ External 15. Market analysis o The market of packaged drinking water in India is not very well developed. The area of U.P. and Utttrakhand has lot of scope to be cater. o There are many player in 10 RS. Price bottle segment like Ganga, Rail Neer etc. but the quality level is not very good. o The high segment is of above 10 RS. Offering good quality but the prices are higher in ratio of the quality provided by them. 16. Strategy and implementation o Segmentation strategy  Low price bottle for the common Indian.  The important target audience are the tourist.  The product will also be segmented on the basis of the better quality at less prices.  The company will also segment it as the safest mineral water and will help person to prevent from the diseases caused by using non-filtered water. 17. Strategy and implementation o Differentiation strategy  The main variables of it are the quality and price. The company will provide good quality at the lesser price.  The company will also provide the huge distribution chain so that the difficulty of getting it may not occur. For this purpose company will contact to the Indian railways and Roadways. The company will use the indirect sales network channel which will in contact to the internal sales force of the company. 18. Strategy and implementation o Positioning strategy  The main element of positioning is a low price mineral water with good quality to prevent from the diseases caused by the non-purify water. 19. Strategy and implementation o Target area  Tourist places.  Religious places.  Railway stations.  Roadways.  Places where available water is not suitable to be drink.  Places where ground water level is very low.

20. Strategy and implementation o Sales forecasting:  Short term: 12 lacks units (in 1 month)  Long term: 1.5 crore units (in 1 year) o Places of launching:  This will include 40 cities from U.P. and Uttranchal.  These 40 cities are based on the tourist places and religious places.  These 40 cities include 15 A grade cities, 15 B grade cities and 10 C grade cities. 21. Strategy and implementation o Places of launching:  Each city is deemed as having 5 towns. So total no. of towns are 200. o Sales forecasting  Market research shows the demand of average 200 units in each town daily. 22. Organization structure o Following will be the departments of the organization:  Manufacturing.  Sales and distributions.  Marketing and advertising.  Human resource.  Finance.  Administration. 23. Organization structure o Job of manufacturing department:  Purchase of raw material.  Filling.  Capping.  Labeling.  Quality check. 24. Organization structure o Role of sales and distributions department:  Make sure the delivery of the product to the dealers.  Manage the inventory.  Contact to the dealers.  Manage the sales force.  Get the feedback of the dealers and also from the market. 25. Organization structure o Job of marketing and Advertising department:  Generate the awareness.  Manage communications.  Get the feedback from the market.  Analyze the market scenario.  Conduct market research.  Give necessary suggestions.

Attempt to develop brand. 26. Organization structure o Job of marketing and Advertising department:  How to promote the product?  Give advertising in the newspapers.  Articles and ads in the healthcare magazines.  Conduct the health protection events.  Sponsor the health events and free health check ups.  Convey about the product to the people in these events and provide them brochures. Templates about it and why it is safe for the health? 27. Organization structure o Jobs of HR department:  Recruit workers.  Decide the pay scales.  Decide the increment and bonus.  Train the workers if required. 28. Organization structure o Jobs of Finance department:  Allot budgets.  Prepare necessary a/c.  Solve the problem related to finance.  Provide the necessary information to the other departments. 29. Organization structure o Jobs of planning and administrative department:  To plan for the future.  Make the planning for future growth such as plant development.  Manage the co-ordination among all the departments.  Combined all the organization as an unit.  Control the whole organization. 30. Organization structure o Sales department structure:  200 sales person (1 for each town)  40 sales officers (1 for each city)  10 divisional manager (1 each for a group of four cities).  2 zonal manager (1 each for 2 zones U.P. and Uttrakhand. 31. Organization structure o Target setting:  The targets are being set on the basis of the area and the potential of the respective area. o Bonus:  In case if a person sell more quantity than whole chain will get a bonus of 30 Paise in ratio of their salary. 32. Financial data o Break even analysis:

The company is confident to achieve the break even point with in the 1 st year of the operations.

33. Assumptions o All these figures which are presented are on the base of the research conducted by the company. o There may be some difference in the actual market scenario and scenario given by the company. o The financial figures are only the expected. There may be some deviation. o The market growth rate is only the assumed so, it might contain some differences from actual scenario.