Start up Businees plan of chocolate .pptx

start up business plan

1. Presentation Members are: Usama Latif M. Faisal Uzair Haroon Iqbal

2. Executive Summary We are starting a business of manufacturing chocolates. Our firm would be a partnership firm. Our business will be started with the capital of 1crore Our target market is whole Pakistan and premium chocolates are exported outside the country. The customers to whom our products will be supplied are retailers, wholesalers and traders in Lahore,Karachi,Multan,Faislabad . We would be targeting the customers of all age groups. The marketing, finance, management and operational plans are shown in further business plan. In marketing, we have conducted marketing research where we have identified market segment, market share and size and competitors. Marketing plan includes the market mix strategy and the objectives. We have applied SWOT analysis for situation analysis. R and D is done for future product planning. We also stated that who will be our target market, which kind of strategic position and risk assessment we have to do. For the financial plan we covered our sources of capital, partner‘s contribution in capital, balance sheet, income statement, break even analysis and sales volume. Operational plan gives the overview of production process, suppliers, location and inventory of the organization. Finally we have shown our technical terms. At last but not the least this business plan shows all legal requirements. There would be 1 Finance Manager, 1 Marketing Manager,1 accountant and 1General manager as part of the organization.

3. Brand and Product name Yummy Chocolate Company is our company name and Chocoholic is our brand name Our motto Healthy Sweet with Heavenly Pleasure Our logo

4. Product description We introduce 3 ranges of chocolates including: Yummy plain chocolates Yummy milk chocolates Yummy fruit and nut chocolate

5. Our vision Our vision is to be the leading chocolate brand at domestic and international level. Our mission We seek to produce high quality chocolate products at competitive price by modern technology to provide high satisfaction to the customer.

6. Chocolate Industry in Pakistan The chocolate market has been growing by nearly 35 %. The sales volume has increased by 5% in the last year Per capital consumption is around100gms in the urban areas In rural areas, it is lower. Pakistan is the right place for of yummy Chocolate in Pakistan . Here, competitor of quality chocolate is so rare; Cadbury is the largest chocolate brand in Pakstan . And second dominating brand is Nestle in the market.

7. Core Competencies The core competencies on which our company will compete are: Taste Quality

8. Limitations: Resource contain in terms of transportation and our lack of experience in preparing this type of project was one of the main constraints of the study. Sample size is too small to come to any concrete conclusion. Research work requires huge time and effort. A better insight could have been achieved if the area of coverage would have included more number of cities.

9. MARKETING RESEARCH

10. Market Analysis Bargaining power of the customers Target Market Upper class Middle class Lower middle class

11. Demographic segmentation: Age Geographic segmentation Lahore Karachi Multan Faislabad Market Segment

12. Behavioral/psychographic segmentation: Lifestyle /Occasion Social class

13. Bars of molded chocolates like milk chocolate, dairy milk, truffle, etc. are accounting for 6% of the total market in terms of volume. Cadbury is the leading player in the chocolate market industry with the penetration of 70% market share. The other ones has introduced its international brands in the country approximately 15% market share. Chocolate Industry’s Margin ranges between 10% and 20%. Market share and Market size

14. COMPANY FOUNDED IN BRAND PORTFOLIO(confectionary products) Nestle 1860s Kit Kat, Smarties, Wonka Ferreno 1940s Rocher, Raffaello, Kinder, Tic Tac, Mon Cheri, Nutella Haque Family 1947 Chocolate wafer, Milky Way, etc Pran 1945 Milk chocolate, Fruit and Nut chocolate Hershey’s 1894 Hershey’s milk chocolate, Kisses, Pot of gold, Milk duds,etc Perfetti Van Melle 2001, when Perfetti and Van Melle merged (Bangladesh) Alpenliebe, Chlormint, Ceter fresh, Happydent, Mentos Globe Biscuits and Diary Milk Ltd( GBDL) 2012( Pakistan ) Candy, chocolate Haque Group 1998( Pakistan ) Crunch Chocolate Coated Wafer Cadbury 1948 (Mark e t ) Diary Milk, Dairy Milk fruit and nut,Diary Milk Silk, etc Competitor Analysis

15. MARKETING PLAN

16. The Product Quality of the service – very good quality Physical characteristics – the chocolate can have different form. Pricing Rebate: for faithful consumers. Method of payment: cash, credit card and cheque Penetration pricing Competitive based pricing

17. Distribution Distributed through retailer, wholesaler and our own sales force. Internet marketing Promotion Local newspaper Local TV channel Local Radio Station Social Networking sites

18. Strength Good chocolate Good price compare to very good quality Different types of chocolates Web- based communication Industrious workforce Modern technological equipment Weakness Lack of marketing expertise Lack of educated workforce High cost of technological investments Absence in rural areas Similarity of packaging Lack of brand awareness Opportunity Creation of loyal customers Market vacated by an ineffective domestic competitor Rise of brand’s value Growing number of customers Access to International market Threat Price wars with competitors Competitor has innovative product Taxation of product Natural calamities Copyright threats Political calamities SWOT

19. Marketing objective Maximize profit margin. The good reputation of the company gives good chances for launching a new product. Keep the good quality of services and products. Long relationship with the customers.

20. OPERATIONAL PLAN

21. Production: The product will be manufactured by Full Automatic Chocolate Production Line. This machine can produce 100- 300 kg per hour. Manufacturing process: Highly sophisticated computer controlled process. Machines chocolate cooling tunnels enrobing machines coating machines moulding machines

22. 8.Cooling 1.Cleaning 2.Roasting 7.Tempering & moulding 6.Conching 5.Mixing & refining 4.Cocoa pressing 3.Grinding Production flow of chocolate Chocolate processing :

23. What factors has influenced the choice of the location? Our manufacturing unit will be located in Gazipur. The factors will be : For exports Availability of labour Technical people Inventory: Sugar Full cream milk powder cocoa mass cocoa butter vegetable fat Emulsifiers & flavours

24. 1. For Milk powder, Whole Milk Powder, skimmed Milk powder, Dairy Whitener, Butter Company Name: Nicnac Foods Private Limited 2. Sugar S- 30 Company Name: Portfolio Private Limited Packaging: 50KG 3. Butter and Vegetable fat, Vegetable Oil Company Name: Baba Casein International 4. Cocoa Powder and Soya Lecithin Company Name: Jishan Foods Pvt Ltd Suppliers

25. MANAGEMENT AND ORGANIZATION

26. Company Name: Yummy Chocolate Company Owner Partners: Usama Latif M. Faisal Uzair Haroon Iqbal General Manager: Karim Haider Job Description: Increasing management’s effectiveness Communicating values, strategies and objectives Maintaining quality service

27. Finance Managers : Ali Asla m Job Description: Providing and interpreting financial information monitoring and interpreting cash flows developing financial management mechanisms managing budgets

28. Marketing managers: Mr. Nishan Ahmed Job Description: Manage and coordinate all marketing activities conduct market research develop and implement marketing plans develop pricing strategy deal with media and advertising

29. Accountant : Mr. Mofis Ali Job description Ensure all financial reporting deadline are met Compile and analyse financial information to prepare financial statements prepare financial management reports monitor and support taxation issues ensure accurate and appropriate recording and analysis of revenues and expenses

30. Legal formalities: DIN(Director Identification Number) TAN ( Tax Account Number) Registered Enroll with establishment Act, Shops and Office of Inspector. Food process order certificate Personnel : Skilled worker Professional

31. CRITICAL RISK MANAGEMENT

32. Limited investor for project Competitive risk Design or manufacturing costs in excess of estimates Child Labor Lacking of skilled employee Product development schedule not met Larger than expected innovation and development costs to stay competitive

33. Enough liquid cash in hand to meet the necessities in hard times Training to the employees Education Advertising, Retain goodwill. Innovative product

34. FINANCIAL SEGMENT

35. The minimum paid up capital for the registration will be RS .1,00,00,000 . Sources can be divided by two types. Internal sources -1) Self Funding Rs .25,00,000 2) Family & Friends Rs .10,00,000 External sources -1) Investors Rs .32,00,000 Loan & line of credit RS .28,00,000 Commit to a major customer Rs .5,00,000 Monthly needs are as follows: Beginning quantities of supplies Hire skilled employees Needed equipment and furniture cost

36. Liabilities Amount ( RS ) Assets Amount ( RS ) Current Liabilities Current Assets Accounts Payable 4,80,000.00 Cash and Cash Equivalent 4,75,00,000.00 Supplier 8,05,400.00 Inventories 17,04,500.00 Tax Payable 1,05,940.00 Bank 65,53,000.00 Notes Payable 9,35,000.00 Account Receivables 13,00,850.00 Accrued Payable 4,73,000.00 Prepaid Expense 89,00,000.00 Marketable Securities 85,00,000.00 Long- term Liabilities Bank Loan 3,46,69,800.00 Reserve Fund 13,85,800.00 Total Current Assets 7,44,58,350.00 Owner’s Equity Fixed Assets Rubayet 2,75,00,000.00 Land & Building 1,94,94,965.00 Shahjahan 1,65,00,000.00 Machinery & Equipment 4,35,00,000.00 Shainur 2,75,00,000.00 Freezer 25,26,500.00 Nafij 1,65,00,000.00 Furniture & Fixture 18,54,325.00 Shaila 1,10,00,000.00 Computer 11,25,000.00 Sourov 1,10,00,000.00 Cover Van 35,00,000.00 Staff Vehicles 23,95,000.00 Total Owner’s Equity 11,00,00,000.00 Total Liabilities 14,88,54,140.00 Total Assets 14,88,54,140.00

37. RS

38. MILESTONE SCHEDULE SEGMENT

39. Milestone Due date Initial capital contributions Completed Legal entity establishment October 15, 2018 Initial content for localization complete January 20, 2018 Spanish launch May 06, 2019 Japanese localization March 15, 2019 Japanese launch May 15, 2019 Milestone table