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DEPARTMENT OF MANAGEMENT STUDIES

Periyar Nagar, Vallam Thanjavur - 613 403, Tamil Nadu


Phone: +91 - 4362 - 264600, Fax: +91- 4362 - 264660
Email: headmba@pmu.edu, Web: www. pmu.edu

MASTER OF BUSINESS ADMINISTRATION

BUSINESS PL AN - PRESENTATION

Course Incharge, Mr.S.Dinu Raj.,Asst.Prof / MBA

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DATE OF PRESENTATION – 28/03/2019
PRESENTATION FLOW
 Executive Summary
 Vision, Mission, Objectives
 Target Customers
 Core Competencies and Competitors
 Organization Structure
 Industrial Analysis, Consumption Analysis
 Market Analysis
 Plans
 Budget
 Conclusion
 References
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OUR COMPANY
Royal Chocolate Private Ltd.

“ Ta s t e t h a t a l l Ta l k s ”

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EXECUTIVE SUMMARY
 We are starting a business of manufacturing chocolates. The name
of the company is “Royal Chocolate”.
 Our target market is whole of Trichy and Coimbatore districts.
 The customers to whom our products will be supplied are
retailers, wholesalers and traders in Chennai, Coimbatore,
Trichy, Nagapattinam, and Kannyakumari.
 Our company will be involved in manufacturing of high quality
chocolates.
 The core competencies on which our company would be
competing are taste and quality of our chocolates.
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VISION AND MISSION
VISION
Our vision is to be the leading manufacturer of chocolates all over
Tamilnadu

MISSION
To produce high quality chocolates at competitive price using modern
technology to provide high satisfaction to the consumers

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OBJECTIVE
 To manufacture and provide the customers with the quality
chocolate to the best interest of the customers.
 To create Price competitive Products as part of the effect to
increase the world access to high quality chocolates.
 To ensure a hygiene & clean working environment as to continue
to produce Safe and Tasty Products.
 To strive to Meet & Exceed Customer's Expectations so as to
ensure a sustainable business relationship.

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TARGET CUSTOMERS
 We would be targeting the consumers of all classes and in all age
groups.
 The products that we would offer for.
 All Class People (Reason – Low Cost)
 All Age Groups (Reason – Low Fat and Low Calories)

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CORE COMPETENCIES
 TASTE
 By consuming the “Royal Chocolates” flavor begins to fill
your mouth the moment the chocolate begins to melt on your
tongue like butter and it tastes like pure chocolate rather
than cocoa powder.
 QUALITY
 The raw ingredients are of finest quality and also care is taken
for the production process.
 A specialized team will be maintained to check the Quality from
raw material purchase and till it reached the customer.
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COMPETITORS
 Global Competitors:  Indian Competitors:
 Cadbury  Amul Chocolates
 Nestle  Mondelez India
 Amul  Nestle India
 Shadani  Mars Chocolate
 Mars  Ferrero India
 ChocOn.  Chocon India
 Parle Chocolate

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OUR PRODUCTS
 Our company will be dealing in the manufacturing of 3 products.
They are:
1. Milk Chocolate
2. Fruit & Nut Chocolate
3. Dark Chocolate

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COMPARISON
COMPETITOR ROYAL CHOCOLATE COMPANY

USP – Flavor, Quality, Innovation USP – Flavor, High Quality, Innovation

Product – Milk, Dark, Fruit and Nut Product – Milk, Dark, Fruit and Nut

Price (20g – 40g) – Avg Rs.50 and Above Price (20g – 40g) – Rs.10 to Rs.25

Company Size – Very Large, Large, Moderate Company Size – Moderate

Expiry Duration – 1 Years Expiry Duration – 1.5 Years

Promotion – All types of Advertisements Promotion – Social Media and Low Level Ads

Quality Level – High, Good Quality Level – High

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OUR TEAM
 Our company would be a Partnership firm.
 2 Investors

Mr. X Mr. X1
Chief Executive Officer Chief Operating Officer

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ORGANIZATION
STRUCTURE
 Our Royal Chocolate Company contain,
 Chief Executive Officer, Chief Operating Officer (Owner)
 General Manager
 Human Resources and Admin Manager
 Royal Chocolate Markers
 Marketing Manager
 Finance Manager
 Customer Services Executive
 Special Quality Control Department is installed
 Labors (Middle and Low Level)
 Framed the best CODE OF CONDUCT AND RESPONSIBILITY BOOK.
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INDUSTRY ANALYSIS
 The Chocolate industry in India as it stands today is dominated by
two companies, both multinationals.
 The market leader is Cadbury with a lion's share of 70 percent.
(Five Star, Gems, Eclairs, Perk, Dairy Milk).
 Till the early 90s, Cadbury had a market share of over 80 percent,
but its party was spoiled when Nestle appeared on the scene (Kit
Kat, Lions.
 The Gujarat Co-operative Milk Marketing Federation (GCMMF)
and Cocoa Manufactures and Processors Co-operative (CAMPCO)
are the other companies operating in this segment.
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CONSUMPTION ANALYSIS
 Per Capita Chocolate Consumption (in lb) of first 15 countries of
the world

1. Switzerland 22.36lb 9. Australia 12.99lb

2. Austria 20.13lb 10. Sweden 12.90lb

3. Ireland 19.47lb 11. United States 11.64lb

4. Germany 18.04lb 12. France 11.38lb

5. Norway 17.93lb 13. Netherlands 10.56lb

6. Denmark 17.66lb 14. Finland 10.45lb

7. UK 17.49lb 15. Italy 6.13lb

8. Belgium 13.16lb
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INDIAN INDUSTRY
 INDIA, stands near to these countries when compared in terms of
Per Capita Chocolate Consumption.
 The Indian chocolate industry is extremely fragmented with
arrange of products catering to a variety of consumers.
 We have the bars/slabs, jellies, lollipops, toffees and sugar candies.
 However, Indians swallowed 22,000 tonnes of chocolate last year
and consumption is growing at 10-12 percent annually.
 Market growth in the chocolate industry is between 10 to 20%.
 In the last five years, the category has grown by 14 - 15% on an
average and will expect it to continue growing at a similar rate in
the next five years. 16
MARKET ANALYSIS
 A market analysis is an assessment, which allows you to
determine how suitable a particular market is for your
industry.
 We are planned to select two districts in Tamilnadu among 33
districts. They are
 Trichy
 Coimbatore
 This selection is mainly done based on the Secondary data referred
in various Annual Reports of Tamilnadu (2015, 2016, and 2017)

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LOCATION ANALYSIS - TRICHY
Total Land Area 4403.83 Sq.Kms
Total Population 2722290
Male 1352284
Female 1370006
Price of Land Rs.120 / Sq.feet (Outer)
No of Schools 40 approx
No of Collages 21 approx
No of Retail Outlets 1178 approx
No of Malls 3
Buying Behavior Good

*Note: The above data were framed using the secondary data study. 18
FACTORY SETUP - TRICHY
The map clearly describe the main
areas in Trichy district and our factory is
to be located in Thuraiyur the northern
part of Trichy district.
Reason
The land is very cheaper and we can
easily built our plant and the raw
materials transportation is also very
easier because there will be less traffic
zone area and it covers the whole of
Trichy district easily. 19
LOCATION ANALYSIS - COIMBATORE
Total Land Area 7,469 sq.kms
Total Population 3458045
Male 1729297
Female 1728748
Price of Land Rs.100 / Sq.feet (Outer)
No of Schools 55approx
No of Collages 27approx
No of Retail Outlets 1927approx
No of Malls 5
Buying Behavior Good

*Note: The above data were framed using the secondary data study. 20
FACTORY SETUP - COIMBATORE
The above map clearly describe the main
areas in Coimbatore district and our
factory is to be located in Annur.
Reason
The northern part of Trichy district
because the land is very cheaper and
we can easily built our plant and the raw
materials transportation is also very
easier because there will be less traffic
zone area and it covers the whole of
Coimbatore district easily. 21
MARKETING PLAN
 Economics
 Total size of chocolate market is 7000 tonnes (gathered
using Secondary Data).
 Trends in Consumer Preferences
 The range and variety of chocolates available in malls
seems to be growing day by day, which leads to lot of
impulse sales for chocolates companies.
 Branded chocolates have become more popular.
 Instead of buying sweets on Diwali and other traditional
festivals, people prefer to buy chocolates.
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MARKETING PLAN
 Barriers to entry
 Huge startup costs and Ensuring good quality products
to the customers.
 High Level of competition from the well established
brands.
 To keep price of the product low, as it is a price sensitive
market
 Overcoming the barriers to entry
 To overcome the barrier of huge startup costs our
machinery would be taken for lease for first few years of
business. 23
OPERATIONAL PLAN
 The product will be manufactured by Full Automatic Chocolate
Production Line (QH200), with this system, baking the moulds,
depositing, forming etc. series procedure can be achieved
automatically.
 It's available to depositing all shape of chocolate. Such as double
color filled-inside, nuts, dark.etc chocolate.
 This machine can produce 100-300 kg chocolates per hour. It can
produce chocolates in different shapes .It can help to reduce cost
of chocolates mould. By Producing Chocolates in different shapes
we can attract all segments of market.
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MANUFACTURING PROCESS
 Cleaning
 Roasting
 Grinding
 Cocoa Pressing
 Mixing and Refining
 Conching – Modern technique to Prepare the Chocolate (Secret)
 Tempering and Molding
 Cooling

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SALES STARATEGY
Our company uses push strategy, for
which we are going to produce the
product and push towards the customer.
In our two locations, we are planned to
maintain a good relationship with the
local vendors who will be providing the
raw materials in a cheaper and with good
quality will be identified and sign an
agreement and the payment will be given
once the goods is delivered at correct
time. 26
SUPPLY CHAIN STARATEGY
 Just-In-Time (JIT) is an inventory strategy implemented to
improve the return on investment of a business by reducing in-
process inventory and its associated carrying costs.
 This saves warehouse space and costs. In order to meet our
requirements we will be having tie ups with raw material vendor.
 We are going to use our own company vehicles to transport the
raw material and finished goods.
 In future we are planning to Setup our own retail stores all over
Tamilnadu with more flavors and varieties of Chocolate in many
forms.
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QUALITY ASSURANCE PLAN
 The bedrock of all our socially responsible supply efforts is our
commitment to ensuring that all chocolate product we offer to our
customers are safe.
 We do business only with suppliers that share this commitment and
work with them to continuously monitor, test, and track our
ingredients.

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PROMOTIONAL PLAN
 Advertising can be in the form of print advertising, banner
advertising.
 Advertising on Television, radio advertising and of course
advertisement on Internet.
 Over the last several years internet has emerged as a strong
platform for advertising product by using different ways and
methods to attract the attention of the customers.

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BUDGET
B U D G E T
LIST OF EXPENSES AMOUNT
Total Cash Required (Debt) 5,00,00,000
L A N D
Trichy – Rs.120/Sq. Feet (2 acres) 1,04,54,400
Coimbatore – Rs.100/Sq. Feet (2 acres) 87,12,000
Balance 3,08,33,600
B U I L D I N G S
Trichy 40,00,000
Coimbatore 35,00,000
Balance 2,33,33,600
M A C H I N I N A R Y A N D V E H I C L E S
Automated and Semi Automated (Raw Material to Final) 1,50,00,000
Balance 83,33,600

R AW M A T E R I A L S A N D O F F I C E S E T U P S

Total Raw Materials 40,00,000

Office Setups 2,00,000

Cash in Hand (Cost for Future Expenses) 41,33,600

Debt / Loan 5,00,00,000

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 From the above table will show the overall budget for the setting
up of the plant in both the locations and working capital for the
first set of production.
 Suggestion
 Loan from bank + financial institution for Rs.5,00,00,000/-
( Bank – 2 Cr/Head ) + ( Financial Institution – 25 Lacs/Head )
 Rate of Interest 12.90%
 Per month interest rate to be paid to the Bank and
Financial Institution is Rs.5,37,500/-

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SALES DATA (Assumption)

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BREAK EVEN POINT
 From the above forecasting of sales and net profit the investors can
repay the debt of Rs.5,00,00,000 within 1 years when the sales is
to be maintained the same. After the debt was settled the sales will
give continuous profit and this Royal Chocolate Company will last
for long years.

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OVERALL STARATEGY
 Understanding the consumer demands and maintaining the quality
will be essential.
 Pricing is the also a key for the products to reach every consumer
houses.
 Right pricing will make or break the product Success.
 There’s also an immense scope for growth of chocolate industry in
India, geographically as well as in the product offering.

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CONCLUSION
 As We know that many strong competitors are already exist in the
market, it gets really very tough to enter into the market. Instead of
all these if we give value for money product to the customers, we
can definitely compete with the competitor’s and can draw the
positive attitude of the customer towards the product.
 Finally, We think that bringing Royal Chocolate Company to the
market with good strategies will bring prosperity and increase the
sales of Royal Chocolates resulting in developing the goodwill of
the company and increase the profit of the company.
 In future there is no doubt that “Royal Chocolate Company” will
rule the Chocolate industry of Tamilnadu. 35
REFERENCES
 www.allchocolate.com
 www.wikipedia.com
 www.google.com
 www.cadbury.com
 www.nestle.in
 www.reviewstream.com
 www.mouthshut.com
 www.scribd.com
 www.slideshare.com
 www.tamilnadu.sensex.co.in
 www.tnregistration.com
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