Executive Summary

Edible Cookie Cup is a start-up for edible cups whose production house is located in Phalase,
Bhaktapur. This concept was initiated by Bulgarian startup but is totally novel for Nepal.The
company plans to open the tea stalls in five different locations that covers the Kathmandu,
Bhaktapur and Lalitpur area. We are planning to serve both hot and cold beverages as per the
requirement of season. Our company has fulfilled the legal requirements as requested by the
government of Nepal as in registration fees of company and raw materials, license and permits,
partnership deeds, tax registration. The product we are providing is made up of natural
ingredients that are good for consumer's health.

With an initial investment of around Rs. 92 lakhs,we carry out our business in various locations.
We are adopting marketing strategy of advertising it in social media via instagram, facebook, and
youtube. We will be generating revenue through the selling of tea with cups in first year,
supplying only the cups to the tea and coffee house in second year and expanding our business in
major cities like Pokhara, Dharan and Butwal by supplying them the cups. And after three years
if the market won’t get saturated then our company will work for next three years. Departmental
heads of production, investment, marketing and human resources constitute the line employees.
Display employees, maintenance staffs and importers are the staff employees of our company.

The operational cost make up a total sum of Rs. and net profit of Rs. will be generated in the
beginning year. These figures clearly demonstrate a profitable venture and an upward swing in
the turnover pattern. We are, therefore, very enthusiastic about our cookie cup business and
further business diversification plans are also in the pipeline.

Industry Analysis
Tea has been a tradition to start a fresh day for every Nepali. 43% of people consume tea and
75% of them litter. People using paper cups have to face the problem of finding a place to
dispose. Similarly, people using plastic cups have to face even severe problem as plastic is
indestructible. The use of these cups have made the animals and human beings difficult to
survive in the polluted environment. So considering the consumption of tea and increasing
pollution we have analysed it as follows:

Strengths
1. Eco friendly environment

We are producing the cup with zero waste as you can eat it all. People wont have any problem to
litter it and they can consume it wherever and whenever they want. So, it helps to create eco
friendly environment.
2. Good for consumer's health

The ingredients we are using to develop the product is natural and edible. We are mixing any
kind of artificial ingredients so it wont affect the health of consumers.

3. Pollution free environment

Our main priority is to replace the plastic cups and control pollution to some extent. Most
consumers are becoming very environmentally conscious. This means that they want to be aware
of the waste that their purchases are contributing to. Edible cookie cup eliminates the typical
waste cycle and doesn’t require any recycling. Since they can be eaten, it is very biodegradable
and won’t fill up landfills or recycling centers.

4. Affordable price with good quality

The price of our product is reasonable as per the quality we are providing. Our product has the
quality taste and they can be afforded by every income level people.

Weakness
1. New entrant

As being a new entrant, it will take us a long time to cover the market.

2. High production costs

We are importing the machine from Alibaba. com and we are renting the area for production and
sales as well so our production cost is high.

3. Lack of brand identity

Strong brand names enjoy a high level of consumer awareness and receive increased attention
from consumers. As we have a total new concept,weak brand name fails to conjure an immediate
impression.

Opportunities
1. Future demand of the product

Our company has targeted all age groups of people. We have also considered the seasonal
beverages so there is the opportunity to have more demand of product in the future.

2. Supply in other new market (inside and outside the valley)

There are other tourism sites outside the valley like Pokhara, Dharan and Butwal so we have
targeted to supply our edible cups in those areas too.

3. Support from environment preservation authority

Our main motive is to reduce the pollution so we have the major support from the environment
preservation authority.

Threats
1. Seasonal effect on raw materials

We may suffer from the transportation problem, different strikes, lockouts etc. which will affect
the supply of raw materials.

2. Machine damage can stop production

The machine we will be using is completely new so the labors can have the problem in operating
the machine, they can even damage them. The damage in machine can affect the production of
cups.

3. Enmity with the plastic producing company

Edible cookie cup will probably replace the plastic cups so they can have the enmity with our
plastic producing company.

2.5. Mission, vision, and objective

Mission

 To reduce the plastic cup which are non bio degradable.

 To take a secret provision for test customization.
 To reduce litter at public places.
Vision

 To aware all the majority of Nepalese about the existence of cup in the run
of three years.

Objectives

 To protect the global environment.

 To reduce harmful effect of using plastic cup which release toxins when
they come in contact of hot tea .
 Revenue generation.
Operational Plan
Operational plan simply includes all the procedures which we are going to use in the
manufacture the cookie cup. For that purpose, we will require the following things.

 Raw Materials
 Blending Machine
 Baking Machine
 Stalls
 Manufacturing Area(Land)
 Labor
 Capital
 Organization

Raw Materials
Raw Materials will be fetched from Bhaktapur wholesale markets, and the particular
Neighbourhood

Blending Machine
Blending Machine is the machine which will be used in preparing the paste. It will be imported
from india

Baking Machine
Baking machine is the machine which will bake the cookie dough at the temperature of 700ºC
It will be ordered via Alibaba,com from Vietnam

Stalls
Stalls will be placed on every Location with attractive Pamphlets and Flexes. It will be made
with the help of local labor Including the Blacksmith and Carpenter

Manufacturing Considerations (Location, Labour, Capital )

The location we have selected considering the rent of the land, wages of labour, the capital we
have collected, and structure we are planning to build
The Cooking Procedure

Mixture of 35kg is required to produce 1000 cups.

 1 grinder mixes 50kg of paste in 1 hour.

where,

1cup = 30gram

Similarly,

 1 Cookie cup machine produce 30 cups at a time

 Mathematically,

 30 cups = 10 min where,

 1000 cups = 330 min i.e 5hrs

 Our company will accommodate of 5 cookie cup baking machine.

So, machine hours for baking the mixture is 1 hrs. Therefore,

Total machine hours +2 hours.

Hence, Total labor hours would be approximately 4hours.

Transportation We hire mini van to supply our products to 5 differ

Volume of production 1000 unit per day

300000 unit per month

360000 unit per year

 Sales forecast RS 50 per cup i.e 1,000 unit * 50 per price = RS 50,000

sales in RS. 50,000*365

= 1,82,50,000 RS per year

Product quality  It is made entirely natural grain products does n

the taste of the drink and keeps crispy
despite carrying hot beverage

 Approved by FDA

Product Design and Development Plan

Our Product falls under the category of bakery item as its basically a cookie and we have molded
it into a structure of a cup and by using some scientific elements we have made it impregnable to
any edible liquid for at least 60 minutes.

The list of the Ingredients is:

• Brown Sugar

• Caster Sugar

• Salt

• Vanilla/Chocolate Essence

• Sifted Flour

• Chocolate Chips
 • Cooking Chocolate

• Cookie Dough

• Gelatin

• Wheat Flour

• Oat Bran

• Sugar Coating

• Added Flavors

• Palm Oil

The step by step procedure of making the cookie cup are presented in the list below
 Step1: Blending all required ingredients into the blending machine
 Step 2: The paste is obtained
 Step 3: Making a separate paste out of oat bran for the base
 Step 4: Addition of Gelatin into the dough
 Step 5: Addition of Chocolate Chips
 Step 6: Baking the Dough using the baking machine
 Step 7:Adding Natural Chocolate flavor
 Step 8: Add Chocolate layer on the inner surface
 Step 9: Packaging
 Step 10: Refrigerating until delivery.

*There are no uses of glazes and other basic coating to ensure its heat resistance and water
resistance

Management summary
Our management is expected to use resources wisely, operate profitably, pay debts, and abide by
laws and regulations. Our management philosophy is based on team work, responsibility, and
mutual respect. People who work at Edible cookie cup, Inc. would want to be part of our team
because we operate in an environment that encourages creativity, diversity, growth, and
performance. We all five partners will be the board of directors r of edible cookie cup Inc.,
assisted by different department managers. All of the managers have successfully managed and
operated a similar manufacturing business, and have more than seven year relevant experience in
the industry. We all the partners will hold the degree of bachelors in business Administration.
We all partners have attended several business management courses organized by the local Small
Business Development Center, steadily adding business skills and business training at their
technical background. They constantly focus on continuous improvement of their business by
applying modern management techniques, such as total quality, activity-based management,
theory of constraints, and just-in-time operating environment.

Personnel plan
Our management is expected to use resources wisely, operate profitably, pay debts, and
abide by laws and
The personnel plan reflects the need to bolster our capabilities to match our positioning. Edible
cookie cup, Inc. will have the following staff:
• Managers
• Labor
• 2 staff on each 5 stalls
• 1 supervisor

In our experience, a team of five multi-skilled employees works best for our kind of business.
Working as a team is critical to our success. We recognize that human resources are edible
cookie cup, Inc.'s most valuable asset. Our personnel strategy focuses on selecting, training,
rewarding, and stimulating all employees in order to build employee loyalty, and increase
performance. It will be easy to find and select the best new members of our team. The traditional
local food-service industry, well represented in the area, along with local colleges and schools,
have contributed to the formation and growth of many skilled employees. In the selection
process, the background check is a must in this line of business. As our stalls will be open whole
week from 8:00 AM to 7:00 PM, the team can operate effectively only by using alternative work
schedules that take into account the busiest periods of the day, the time needed to prepare the
product before opening.

In addition to salaries, important bonuses and incentives are included in the personnel table that
will be used to reward employee performance, on a pay-for-performance basis. The cornerstone
of our personnel plan is to maximize productivity and minimize labor burden of the company's
operating expenses, while maintaining strong employee commitment to the success of
operations. Trying to appropriate compensation incentives to our company's performance targets
increases the likelihood that these goals will be achieved. Our performance-based pay strategy
takes into consideration the linking of employee compensation to the achievement of measurable
business targets.
Management Hierarchy

BOD

Production Investment Marketing Human

Department Department Department Resource
Department

Fig. Management Hierarchy

Production department

Production Department is the department which directly involves in manufacturing products.

Examples are the machining, finishing, and assembling departments. Functions of Production
Department Production are the functional area responsible for turning inputs into finished
outputs through a series of production processes.

In our production department we have:

 3-5 members actively working and monitoring the production process

 Including 3-4 labors and 1 supervisor who will be supervising the production process
 The vehicle driver and his assistant who will be delivering the ecible cookie cups to each
respective stalls around the city.

Investment department
Investment department is the department which involves the funding off company, managing the
accounts of the company, transferring the salaries to the employees and handling all the business
legislation and taxation propounded by the government.

In our investment department, we will be:

 Hiring 1-2 skilled manpower for managing all management of large amounts of money
 They will also be dealing with the governmental authorities regarding laws, taxes and
business legislation
 They will also transfer the salary into all employees’ respective accounts after receiving
information for HR department.

Marketing department

Marketing departments of companies and organizations are responsible for market research,
solution development, promotional campaigns and customer relationship programs.

We have managed our marketing department in such a way that it will create awareness, by
engaging customers. We will be building relationship with our audience for the promotion of our
product. Developing the design o f or packaging and creating attractiveness in the product we
will be advertising our brand in the market. Introducing new schemes towards the customers we
will be promoting our brand and expanding our business in every possible way.

Human resource department

A human resource department is a department in most organizations which recruits

employees, assists in development and training and ensures that staff works in good
conditions. HR promotes the organization’s objectives to maximize the potential of the people
working within it.

Our human resource department consists of:

 3 people on factory who will be engaged in manufacturing the product

 1 people will be doing the packaging of the cookie cups
 1 supervisor will be supervising the factory ongoing production process and delivery of a
van
 There will be 2 people on each stall which equals to 10 people in 5 different stalls.
 The total employment created by or company will be around 15.

Market analysis summary

The area is a growing low-to-middle-class area people, counting more than around five lakh
residents. There are about hundreds businesses close to our location. Most of these residents are
students and job holders. The average income for that area is RS 50000. The boom in the area is
primarily in response to new business and employment opportunities in the city. Similar food
service businesses that traditionally do well with this population have proved the potential for
edible cookie cup. With continued growth in the area, opportunities to serve the local residents
will increase. The company will sell to individuals, but it will also accept some proposal from
other wholesaler and retail shop in the area. We estimate that over 90 percent of our sales will go
to individuals (retail customers) and the remaining balance to existing and future businesses
(corporate customers). However, it is important to note that, typically, corporate customers make
larger orders for their employees' needs or special business events.

Market segmentation

As explained above, the main market segments are: a) individuals (retail customers) accounting
for more than 90 percent of our sales, and b) local businesses (corporate customers) which, in
terms of purchase orders, typically make larger orders for their customer and business needs.
Next illustration shows the market segmentation, taking into account, for conservative purposes,
only the potential number of individuals that would drink cookie cup beverages about 5 lakh
residents, or 10 percent of the population in the stall areas.

Market Segment Strategy

Edible cookie cup will focus on its target market, low-to-middle class residents in the local area,
along with local businesses that are located inside or outside the stall located area. Typically,
according to our own market survey, the target individual customers prefer to drink tea more
than once a day, as an occasional alternative to an expensive and time-consuming lunch or
dinner. Businesses prefer to order Tea for their employees, or on different occasions or less
exclusive business events. We will strive to establish a reputable image from that target market's
perspective, by offering excellent quality, convenient expedient services, service excellence, and
by partnering with local businesses and other interested organizations in our community. By
always focusing on meeting or exceeding our customers' needs, wants and expectations, we will
be able to build customer loyalty and word-of-mouth sales that many of our competitors are
lacking. The estimated total t market in stall area is 30000 cookie cup per month, We believe this
target market share to be reasonable and achievable.

4 P’s of marketing of Edible Cookie Cup Company

Promotion
Promotion refers to any type of marketing communication used to inform or persuade target
audiences of the relative merits of a product, service, brand or issue. The aim of promotion is to
increase awareness, create interest, generate sales or create brand loyalty.
We will be promoting our brand through:
 Development of social medias sites by profiling and updating via Facebook, Instagram,
Youtube, etc
 Photogenic areas around stalls through which people will post photo in social media and
other people will get aware about cookie cup.
 Developing Youtube skip able ads to promote via Youtube
 Partnering with Nepali Youtubers for promotion

People

People are the most important element of any service or experience. Services tend to be produced
and consumed at the same moment, and aspects of the customer experience are altered to meet
the individual needs of the person consuming it. Most of us can think of a situation where the
personal service offered by individuals has made or tainted a tour, vacation or restaurant meal.
Remember, people buy from people that they like, so the attitude, skills and appearance of all
staff need to be first class. People have an important role in service delivery, they are relied upon
to deliver and maintain transactional marketing and people play an important part in the
customer relationship.
We will be covering every age group of people because everybody loves new taste and these
days’ people are more outgoing and follow new trends. We will be focusing each and every age
group with people by serving buyers preferences by introducing sugar free cookie cup for
diabetes patients, hot chocolate and milk for kids. We will be developing photogenic area for
photo obsessed people.

Price
Pricing is the method of determining the value a producer will get in the exchange of goods and
services. Simply, pricing method is used to set the price of producer’s offerings relevant to both the
producer and the customer.
Our price will be targeted to all the income level people. Targeting all those income level people we
have priced RS 50 per cup. These days RS 50 is not a big deal for people to spend. Determining the
cost of production and to generate the revenue for the company we have determined the price for our
edible cookie cup.

Place
Place Marketing, also referred to as Place branding refers to promotion of a particular place. It
goes beyond the notion that the struggle for preference is only for the products and services. All
over the world, countries, states, cities are competing for the attention in terms of business,
tourism income etc.
We have determined 5 places for stall to be established for promoting our brand towards the
customers.
The locations where our stalls will be located are:

1. City centre, Kamalpokhari, Kathmandu

2. Civil mall, Sundhara, Kathmandu
3. Bhatbhateni super market, Radhe Radhe, Bhaktapur
4. Labim mall, Pulchowk, Lalitpur
5. Chandragiri Hills, Thankot

Financial Projections
 Source of Fund Amount (in Rs)
Personal Fund @25% 25,00,000
Bank Loan @75% 75,00,000
TOTAL CAPITAL 1,00,00,000
BREAK EVEN ANALYSIS

Particulars Amount(Rs)
Fixed Cost (FC)
-salary 12,00,000
-Rent 20,40,000
-Plant 2,50,000
- Machinery 7,00,000
- office equipment & furniture 1,00,000
- Insurance 3,500
- Registration 25,000
Total fixed cost 43,18,500
Variable Cost (VC)
- Labor fee 6,48,000
- Raw materials 40,00,000
-Electricity 1,86,000
- Transportation cost 3,00,000
-miscellaneous 2,50,000
- Advertisement 50,000
Total variable cost 54,34,000
Selling Cost (SC) 1,82,50,000
PV Ratio (1-VC/SC) 0.7022465753
FC/PV Ratio 61,49,549.39
Total BEP (in Rs) Rs61,49,549.39

CASH COLLECTION AND DISBURSEMENT BUDGET FOR THREE YEARS

Particulars 1st Year 2nd Year 3rd Year Total Amount (in
Amount (in Rs) Amount (in Rs) Amount (in Rs) Rs)
Opening Cash 84,57,500 1,31,55,500 2,16,13,000
Add: Cash Receipt
- Cash Sale 1,82,50,000 3,28,50,000 6,57,00,000 11,68,00,000
- investment 4,62,500 462500
sold (Plant,
tea/coffee
machine)

A. Cash Receipt 1,82,50,000 4,17,70,000 7,88,55,500 138875500

Less: Cash
Payment
- investment 9,50,000 3,00,000 5,00,000 17,50,000
Purchase
- Office Equipment 50,000 50,000
- Furniture 50,000 50,000
- Salary 12,00,000 12,00,000
- wages 6,48,000 13,00,000 26,00,000 45,48,000
- Advertisement 50,000 50,000
-Rent 20,40,000 6,00,000 7,20,000 33,60,000
-Electricity 1,86,000 3,70,000 7,40,000 12,96,000
-Transportation 3,00,000 3,00,000 4,00,000 10,00,000
cost
-Miscellaneous 2,80,000 2,80,000 3,00,000 8,,60,000
Expenses
-Purchase of raw 40,00,000 1,00,00,000 2,00,00,000 3,04,00,000
materials
-Insurance 3,500 5,500 10,000 19,000
- Registration Fee 35,000 35,000
B. Cash Payment 97,92,500 2,86,14,500 2,52,70,000 4,46,18,000
C. Cash Balance 84,57,500 1,31,55,500 5,35,85,500 9,42,57,500
(A-B)
Add: Borrowing
Less: Interest
Less: Repayment
Closing Cash 84,57,500 1,31,55,500 5,35,85,500 9,42,57,500

Overall Schedule

 On the first year, company will have one production centre from where goods are
supplied to five different stalls in order , to meet large number of customers inside the
valley.

 On second year, we will switch our stalls and company would only make expansion to
all tea and coffee house and by extending our production plan inside the valley.

 On third year, we will extend in big numbers to major cities outside the valley such as
Pokhara , Butwal and Dharan .

COST AMOUNT (RS)

 Investment, Fixed cost and Variable
cost

Plant (development and design of stalls 2,50,000

)

Machinery 87,500
-Grinder, 4,00,000
-Cookie cup machine, 2,12,500
-Tea/coffee making machine

Rent (production house and stalls) 20,40,000

Salary 12,00,000

Office equipment 50,000

Furniture 50,000

Raw materials 40,00,000

Labor fee ( workers on production) 6,48,000

Electricity 1,86,000

Transportation cost 3,00,000

Miscellaneous Expenses 2,50,000
 START-UP
EXPENSES

Registration Fee 15,000

-Company 10,000
-Raw materials

Advertising 50,000

Insurance 1500
-General insurance 2000
- life insurance

TOTAL COST 97,52,500

 SALES Per day 1st Year 2nd Year 3rd Year

Sales unit 1000 365000 1095000 2,190,000

( 1st year)
3000
(2nd Year)
6000
(3rd Year)

Sales per unit 50 30 30

Total Sales 1,82,50,000 3,28,50,000 6,57,00,000

 Particulars 1st Year 2nd Year 3rd Year
(Amount Rs) (Amount Rs) (Amount Rs)

Profit after tax 61,10,543.75 1,41,15,482.5 3,36,31,665.2

Add: Opening balance 30,55,271.875 80,85,377.1875

Less: Repayment
@50%

-Own Capital 30,55,271.875 15,85,377.187 2,08,58,521.19375

5

-Bank loan 75,00,000

Closing cash 30,55,271.875 80,85,377.187 2,08,58,521.19375

5