Executive summary: Pran group of companies is one of the leading business institute of Bangladesh. We hav e prepared report is based on “Business Plan on “Pran Juice Company” . We are thinking about launching a new juice “pran sugar free smoothy”. To prepare this report we have followed marketing research methodology for whose are children and diabetic people. To see the market need and wants we prepared a questionnaire made by pran juice company. The survey took place inside and outside of Dhaka.
After analyzing questionnaires we made some plan about location of raw materials, source of finance, price, product promotion, and Channel of distribution. We will preserve 500ml, and 900 ml Orange, Mango, Cocktail Special juices which w hich will be totally suger free but sweet. We keep our price relatively low than other soft drinks and fruit juice. We will place our advertisement adv ertisement at television & banner. We will distribute our product near by shop of Dhaka city in the form of bottle packaging so that consumer can get it easily. The whole production process p rocess is in strict conformity with international standards, and constant research and development all products. We are confident that our products and services will satisfy the highest of standards.
Our pricing policy will be reasonable and channel of distribution will be convenience. So our target customers will get it easily. We hope that through this plan we will increase the competitive market share in soft drinks industry. Pran Juice provided superior value to their customer who they promised throwing advertising. So the customers are loyal to the Juice brand and build long term relationships.
Industry Analysis
Industry Analysis
FUTURE OUTLOOK AND TRENDS: Many juice companies are already established. We determine our competitor as ACME, SLICE,SHEZAN, FROOTIKA etc. Our company will be based on beverage products. We mainly want to produce a type of juice which is different then other juice manufacturing companies. Initially we prepare our business plan for three years. We wish to achieve a so much customer and consumer response in 1 year. It wills our betterment of our company. We get best wishes to our target customer and also the mind of the customer will obviously great beliefs of our products. Because we mention that, our product will free from sugar, fat & harmful chemicals. We expect the sales will be in next year approximately TK 5.50 corer. Our product cost is TK 3,30,50,000. The return on investment is 20% expected.
ANALYSIS OF COMPETITORS: In food & beverage market there are many renowned companies having their juice products. Acme Acme Jui Juice ce
Pran Juice
Frooto Juice
Frutica Frutica Juice
Shezan Shezan Juice
Competitors titorsPosition Position Acme Pran Frooto Frutica Shezan
Now, we give a brief analysis about our competitor s market share. ‟
Performence
MARKET SEGMENTATION: We segment our market according to the demographic segmentation. In these segmentation criteria we segment our customer according to: Age, Sex, Income, and Occupation. Our main target customer is 60 % of diabetic people.
Organizational plan
“PRAN” is currently the most well known household name among the millions of people
in Bangladesh and abroad also. Since its inception in 1980, PRAN Group has grown up in stature and became the largest fruit and vegetable processor in Bangladesh. It also has the distinction of achieving prestigious certificate like ISO 9001:2000, and being the largest exporter of processed agro products with compliance of HALAL & HACCP to more than 70 countries from Bangladesh.
PRAN is the pioneer in Bangladesh to be involved in contract farming and procures raw
material directly from the farmers and processes through state of the art machinery at our several factories into hygienically packed food and drinks products. The brand “PRAN” has established itself in every category of food and beverage industry and can boost a product range from Juices, Carbonated Drinks, Confectionery, Snacks, and Spices to even Dairy products.
Today, our consumers not only value “PRAN” for its authentic refreshing juice drinks products , but also for its mouth watering quality confectionery products with high visual appeal and exciting texture. We intend to expand our presence to every corner of the world and strive to make “PRAN” a truly international brand to be recognized globally.
Business Strategy OBJECTIVE: Become as the Best juice company in the Bangladesh
Improving the customer satisfaction through the good quality of products
Turn in profits in every year of operations.
The creation of unique, innovative and healthy products that will differentiate “pran
suger free smoothy” from local juice.
Four new Outlets in next five years in other city of Bangladesh
To exceed 6 million in annual sales by the third year of plan implementation.
KEYS TO SUCCESS FACTORS: Employee training to insure the best juices preparation techniques.
Marketing strategies aimed to build a solid base of loyal customers
The products we serve are of the highest quality. We combine this quality with great
service and atmosphere
Customer satisfaction with high quality juices and services
Competent management staff whose makes the juices and shakes fresh and good
quality
Management that treats every employee equally. We create an atmosphere where
employee's love coming to work and can earn good money.
Our commitment to providing excellent quality Juices at all times
Excellent Customer Service. Quick delivery and each customer will be treated as
would an honored guest in our homes
Product quality. Not only great food but great service and atmosphere
The creation of a unique, innovative, upscale atmosphere that will differentiate
Maintain good relationships with reliable supplier
Repeat customers.
MISSION: Establish Smoothy Juice as the Local leading source of healthy energy in the form of freshly juices with an uncompromising commitment to making a difference through our values.
VISION: Explore all over the Bangladesh from fresh juices, providing for all their needs always with the assurance of outstanding quality.
Company’s Strategies for Strategic Formulation: There are three Strategic Formulations.
1. Overall cost leadership. 2. Differentiation 3. Focus
Overall cost leadership: When the business works hard to achieve the lowest production and distribution costs so that it can price the products lower than the competitors and win large market share. Pran Group fallows this Strategic Formulation. They always tray to reduce production and distribution cost thus they can offer product in lowest price then their competitor. They win large market share for lowest price and good quality products.
Differentiation: When the business concentrate on getting superior performance in an important customer benefit area valued by a large part of the market. The firm seeks for quality leadership. Pran Group does not fallow Differentiation Strategic Formulation.
Focus: When a business focuses on one or more narrow market segments. And for attracting the customers it may use either cost leadership or differentiation. Pran Group does not fallow Focus Strategic Formulation.
SWOT ANALYSIS: Strength: 1. 2. 3. 4.
Huge food & drinks Varity. Food & drinks quality is good. Mainly Bangladeshi customer based. Product availability is more.
Weakness: 1. 2. 3. 4. 5.
Low advertisement. Confusing add. Common add for all type of food or drinks. Market size is small. Distribution is time consuming.
Opportunity: 1. 2. 3. 4. 5.
Potential customer. Converting non user. Production cost is low then others. Offer different packages. Add should be meaningful
Threats: 1. 2. 3. 4.
Direct competitor (Arong, Bd food) Government regulation. Selective Low price from competitor. Wide Varity (BD FOOD).
Business Description
Business description: Our business name is Smoothy Juice and we have different varieties in juices drinks as well and our Smoothy Juice Industry is located in Asulia, Savar, Dhaka.
Why Pran suger free juice? Pran suger free smoothy is specially for children and diabetic patients because its suger free and diet juice. This juice is providing totally fresh juice. People are very much conscious about their health aand mostly they like fresh fod then soda, carbonated drinks. Its also favorable for health conscious people and childrens.
Products and services:
Fresh juice: For the first time we are producing orange juice for testing the consumer
market. We are going to make fresh juices 3 flavors in juices available throughout the year - Orange, mango and Cocktail special.
Seasonal juice : In seasonal juices we initially introduced Mango, Orange.
Our specialty: Our specialty, we produce juice for the children and health conscious
people, because we reduce the fat level on 0.5% and add extra vitamins and add some sugar that are best for diabetic people.
100% pure juice
Pure Sugar free
Diet
Mixed flavor ( cocktail)
Production Plan
Production plan: Whole of the manufacturing maintain by our employees and all the raw materials will be purchased from our country and abroad and we produced our product in our factory.
MANUFACTURING MACHINERIES & EQUIPMENT AND ITS PROCESSES:
Three basic disciplines are used in the process: 1. Mass transfer 2. Heat transfer 3. Squeezing the orange
Juice extraction: Firstly the oil is removed. This process is carried out without causing damage to the fruit. It is done to avoid undesirable flavors and obtain the highest possible level o f aldehydes.
Secondly the juice is extracted. The technology used involves cutting and squeezing the orange and is different to many of the In-line systems used. The HRS process does not damage the peel and therefore avoids contamination of the juice.
Thirdly the juice is separated from the husk and the seeds. With this process we reduce the bitter constituents, obtaining a low reading for quick fiber and a low viscosity in NFC.
The resultant juice has a minimum content of the bitter constituents, an agreeable colour, minimum natural oil content and an increased number of intact juice cells. The Limonina content is also reduced. The average cell size in the pulp is increased with a higher percentage of floating pulp.
We must also highlight the fact that the process does not use water during the extraction processes, the energy consumption has been optimized and the contaminants contained in residual water have been minimized.
REMOVING THE BITTERNESS: Once the orange juice has been obtained we have to remove the bitterness from the juice. This is done by a process designed to eliminate the limonina, narangina y h esperidina from the juice.
The process starts with stabilised fresh juice and 15 Brix reconstituted juice. They are centrifuged in order to separate out the pulp from the juice. Lewait Bayer resin is added to the juice and it is then circulated to a storage vessel where the thermal treatment is carried out.
TREATMENT OF THE PULP AND ASEPTIC FILLING: One of the key aspects related to the treatment of the pulp is the mass transfer. HRS Spiratube has developed a piston pump particularly suited to this purpose, a pump which is hygienic and can develop pressures of up to 40 Bar.
Another of the fundamental aspects of the process is the thermal treatment which is carried out using a triple tube heat exchanger (HRS Spiratube model AS ). In this heat exchanger the product flows through an annulus formed by tree concentric tubes making the units especially useful for:
Fluids of high viscosity
Non-Newtonian fluids
Fluids which contain small particles
Finally the process uses an aseptic filler of the type “Bag-in-Drum” or “Bag-in-Box”, both designed by HRS Spiratube, which allow the product to be packed into aseptic containers. Preformed and pre-sterilised containers of between 5 and 1000 liters are normally used.
MX PASTEURISER: The Pasteurisers MX series produced by HRS Spiratube are characterised by the high speed of treatment, carrying out product de-aeration when the product is cold and because little maintenance is necessary.
HRS has developed a new series of Pasteurisers, designated the MX series in which special attention has been paid to the following features:
Feature 1. Energy recovery. Up to 85% of energy can be recovered which reduces the
processing costs substantially. Feature 2. Thermal treatment times are reduced. This results in a higher quality product
being provided. Feature 3. The design is hygienic. This results in a higher quality product being
provided. This key aspect of the design is the elimination of all dead zones within the unit where movement of the product is restricted. These zones are inevitable present in traditional designs using product to product heat recovery particularly in the area of the product entry into the headers.
Feature 4. Reduction in space. The most visible aspect of the MX technology is the
reduction in size of the units. This has been achieved by eliminating the bends interconnecting the units. Compared to a traditional design the volume needed for the MX series can be reduced by up to 70%. In the specific case of orange juice production we can take advantage of the MX technology because it allows us to use direct product to product heat recovery. The result is a more compact pasteuriser containing significantly fewer modules.
CIP CLEANING SYSTEM: The CIP (Clean in Place) cleaning system used b y HRS Spiratube is centralized with automatic control of the parameters. An outstanding feature of this design is that it has automated practically all of the cleaning operations required in the plant.
THE JUICE MIXING ROOM: The principal components are automatic systems for mixing the product, controls for the components and the CIP cleaning operations. Mixing takes place in tanks fitted with agitators in which we can programme the proportions of the various constituents. The mass transfer of the constituents is carried out using centrifugal or pistonpumps.
SHIPPING: The shipping area contains the chillers used for loading and unloading the tanks. These chillers use MX and AS type heat exchangers that generate the best heat transfer coefficients. The products must be chilled down to between 0°C and +2°C.
DRYING THE ORANGE PEEL:
In order to market the orange peel we must use a drying plant. The first part of this plant is the hydrolysis zone which takes the peel coming from the juice plant and adds lime [CaO]. When we have the hydrolyzed peel it passes to the presses where we o btain a semi-solid product and a 24 liquid. The liquid is passed to a further process of evaporation where we obtain a concentrated liquid. The semi -solid product and the concentrated liquid are both passed to the final dryer from which we receive the dry product. The Trommel type dryer can use different types of fuel such as biomass, natural gas etc. and it is important to realise that the exhaust gases from the dryer can be used as an energy source on the evaporation plant. Lastly, the product is passed to a pelletiser which gives the peel in a form which can be sold.
Graphical outlook of the manufacturing process:
Marketing Plan
MARKETING OBJECTIVES:
Maximum profit margin: The big price objective of “ pran suger free Juice” that they provided high quality product and satisfied the customer with its flovar then take the premium price from the customer other than our competitors. This suger free juice contain maximum profit margin other than their c ompetitors.
Quality leadership: The main objective of this company that its responsibility to provided best quality which they promised to their cu stomers. Pran suger free Juice will successfully fulfill their promises.
Long relationships with customer: pran suger free juice provides superior value to their customer who they promised throwing advertising. So the customer are loyal to this Juice brand and build long term relationships.
Communication objective: pran suger free juice use different sources to attract their target customer. The objective of this new Juice produces awareness in our customer about new products and also produces awareness to new customer about suger free Juice. Pran suger free Juice also give the knowledge of their juices give you energy and good taste. Through this, it also gives message that this juices are good for your health.
Strategy marketing objective:
To build unique distribution system that provides ubiquity at low cost. To build high speed, efficient and vertical integrated manufacturing capabilities to gain low cost advantage. To reduce energy consumption during production
To increase advertisement activities.
To redesign packaging to a more attractive and familiar.
To make innovation in product so that it become more portable and in convenience oriented form. To improve product quality as ever provide
PRICING STRATEGY: By using the value pricing method, the price of Pran suger free juice is done. Pran suger free juice selling its juices at price added cost and prifit margin and also keep in mind the key competitors price. Pran suger free juice provides its customers quality fresh juices that provide customer good health and enjoyment. Pran suger free juice is a big price objective that they provided high quality and taken premium price to its customer. Pran suger free juice contain maximum profit margin is another objective of pricing strategy. PRICE STRUCTURE: Product name
Mango Juice (500ml) Mango Juice (900ml) Orange Juice (500ml) Orange Juice (900ml) Cocktail Special (500ml) Cocktail Special (900ml)
Cost of raw materials 14
Production cost
Marketing Cost
Profit
Price/ unit
3.50
1.50
3.00
22
Retailer’s Selling Price 25
25
6.75
3.25
5.00
40
45
15
2.50
1.50
3.00
22
25
30
6.00
4.25
4.75
45
48
17
4.00
2.50
1.50
25
28
35
8.50
3.50
3.00
50
55
DISTRIBUTION STRATEGY: A distribution strategy defines how you are going to move products from point of creation to points of consumption, in a cost-effective manner. The effectiveness of distribution coverage and practice is of paramount importance in achieving the desired fruit juice sales. We select place for Pran suger free juice Show Room and Whole Sale shop near Star Kabab in Sankar Dhanmandi and Banani. Our location very attractive because that place also very famous for Food Street. There is no any fresh fruit juices shop. That place is also attractive for juices because there is no juices corner but there are many good food restaurants like KFC and Pizza Hat and others. So that is advantage of place for Pran suger free juice.
We actually distribute our product in two ways:
1. B2B (Business to Business) 2. B2C (Business to Consumer)
We show our distribution channel in chart below:
Manufacturer
Dealer
Agent
Wholesalers
Retailer
Business to Business (B2B)
Manufacturer
Dealer
Agent
Wholesalers
Retailer
Customer
Business to Consumer (B2C)
PROMOTIONAL STRATEGIES: Pran suger free juice use different sources to communicate their target marketing. Pran suger free juice use those sources on that the more customer attract like Local Cable, Newspapers, Billboard and when they lunch any scheme in juices they use pamphlets to aware their customer. Pran suger free juice uses the channel to attract the customer and give fully information about juices through these Electronic media. As our target consumers are Old, Children and all health conscious people, for this reason we promotion our product to give advertise in television, radio. We also use vehicle writing method and posturing for our product advertisement. We also promotion our product with the help of our packaging system. In packaging we mainly follow that the product will packaged in an attractive form, that make consumers interest on our product. It packaged in different levels in variation of quantity. So people can afford it easily.
Product forecasts: This types of product continuing in the market on the basis of their features, reasonable price, standard maintain and also quality. We are also prepare and determine that our product will be quality full and reasonable price that s why we are optimist about our ‟
product that will be continue a certain time.
Controls: We believe in best quality. In producing our product we maintain quality as well as quantity. For control the products quality we will import best quality equipment from abroad. We also standardization our product from our expert researcher. Our whole production process mainly base on computer for this reason is done by a very systematic process. We produce our product which has no harmful chemical. That s why these ‟
products have no side effect and every one in every age can use our entire product frequently.
E-commerce
E-commerce model: E-commerce is the buying and selling of goods and services over electronic networks. The models map out different configurations for the flow of goods and money. One of them is –
Private Office Model: The office model is an extension of the company
CUSTOMER
website which is only visible to the client. The client is
public site
provided with a user ID and password. This model is best suited to service
security
businesses with high- value products. It also works well for collaborative projects or
eproducts
transactions or for services or markets with complex security
Billing
arrangements.
the picture of their preferable flavor. They will see a diagram where they have to write down the In case of pran suger free juice, customers have to enter to the web page of pran juice company first. In one side of the page will be personalized by our new product. To check out the products or put orders, customers have subscribed with a user ID and password with the help of their e-mail address. Once they enter their email address, it will work as their identity and will be saved in the database for life time.
When customers log in to the web site, they will see some all the products o f Pran group in left side. On the right side, they will see the verity of our new sugar free juice. Customers have to give orders by clicking into quantity of their product and mention the
particular flavor name. there will be a part where customers have to write down their proper present address and contact number. If customers wants to pay through credit card, then they have to click on the “Bill Pay” button. They have to write down their account name and card number and the amount payable. The card have to be VISA card. If customer doesn’t have credit card, then they can pay it menually before the delivery. Then click the submit button. Once the submission of order is complete, they will see a PIN number of order which they have to keep.
The order will be served with in 24 hours in the mentioned address. The delivery person will ask for the PIN number to the receiver. If it matches, they will take the payment and close the order.
Financial plan
Financial Plan:
Pran suger free juice Pro-forma income statement For the year end 31st dec,2011 Revenue: 2,55,00,000.00 Net Sales
Less: Cost of Goods Sold: Beginning Inventory Add:
Purchases
0.00 1,15,00,000.00 3,50,000.00
Freight-in Less:
Ending Inventory
1,18,50,000.00 17,04,500.00
Total Cost of Goods Sold
1,01,45,500.00
Gross Profit
1,53,54,500.00
Less: Operating Expenses: Advertising Maintaince Salaries & wages Building Rent Repairs
29,00,000.00 30,000.00 10,90,000.00 16,60,000.00 8,15,000.00
Depreciation (Land &Building)
1,50,000.00
Depreciation (Machinery& Equipment) Office Expenses Miscellaneous
1,63,400.00 50,000.00 90,000.00
Professional Fees
1,70,000.00
Telephone Utilities Marketing Van Packaging Cost OperatingProfit Less: Interest Expense
90,000.00 99,000.00 1,60,000.00 23,00,000 .00
97,67,400.00 55,87,100 .00
53,30,200 .00
Net Profit Before Taxes
2,56,900 .00
Less: Tax (40%)
1,02,760 .00
Net Income
1,54,140.00
Pran suger free juice Cash Flow Projections
For the year end 31st dec,2011
Particulars Cash flow from operating activities: Net income
Details
(Taka)
1,54,140.00
Adjustment to reconcile act income to net cash: Add: Depreciation/ Amortion
3,25,000.00
Loss on sale of equipment Decrease in prepaid expenses Increase in accured expenses payable Less: Increase in account receivables Increase in inventories Decrease in account payable
1,10,000.00 2,00,000.00 54,000.00 (2,80,000.00) (95,000.00) (65,000.00)
4,03,140.00
Net cash provided by operating activities Cash flow from investing activities: Add: Sales of plant assets Investments Less: Purchases of equipment Purchases of land Purchases of building
95,000.00 5,00,000.00 (2,30,000.00) (26,00,000.00) (10,63,000.00)
(32,98,000.00)
Net cash used by investing activities Cash flow from financing activities: Add: Common stock
000000.00
Less: Paid of cash dividend Redemption of bond
(85,000.00) (00000.00)
Net cash used by financing activities
(85,000.00)
Net cash Decrease in during year Add: Opening cash balance Cash of the end of the year
29,79,860.00 11,00,00,000.00 10,70,20,140.00
Pran suger free juice Proforma Balance Sheet For the year end 31st dec,2011 Liabilities Currents Liabilities Account payable Supplier Tax payable Notes payable Accrued payable
(Taka)
Assets Currents Assets
4,80,000.00 Cash and cash equivalents 8,05,400.00 Inventories 1,05,940.00 Bank 9,35,000.00 Account receivables 4,73,000.00 Prepaid expenses Marketable securities
(Taka) 4,75,00,000.00 17,04,500 .00 65,53,000.00 13,00,850.00 89,00,000.00 85,00,000.00
Long-term Liabilities Bank loan
3,46,69,800.00
Reserve fund
13,85,000.00
Total current assets Owner’s
Equity
7,44,58,350.00
Fixed Assets
Rubayet
2,75,00,000.00
Land &Building
1,94,94,965.00
Shaj ahan
1,65,00,000.00
Machinery & Equipment
4,35,00,000.00
Shainur Nafij Shaila Sourav
2,75,00,000.00 1,65,00,000.00 1,10,00,000.00 1,10,00,000.00
Total Owner s Equity ‟
Total Liabilities
Freezer Furniture and fixture Computer Cover Van Staff vehicles
25,26,500.00 18,54,325.00 11,25,000.00 35,00,000.00 23,95,000.00
11,00,00,000.00
14,88,54,140.00 Total Assets
14,88,54,140.00
Source of application of Fund: Our total equipment and capital is taka 11 crore and we have taken a loan amount of taka 4 crore to improve our product quality. Now our total capital is Taka 15 crore. The amount of taka 15 crore that we have in which areas we use this money is given below: Plant and Machinery Tk 4,35,00,000.00 Transportation Cost Tk 25,00,000.00 Staff Vehicles for the corporate Office Tk 23,95,000.00 Computer Tk 11,25,000.00 Land &Building Tk 1,94,94,965.00 Cover Van Tk 35,00,000.00 Furniture and fixture Tk 18,54,325.00 Freezer Tk 25,26,500.00 Total Used Tk 7,68,95,790.00 Cash in Hand Tk 4,75,00,000.00
