Executive summary:

Pran group of companies is one of the leading business institute of Bangladesh. We have

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 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 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 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

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 Juice

Pran Juice

Frooto Juice

Frutica Juice

Shezan Juice

Competitors Position

Acme

Pran

Frooto

Frutica

Shezan

Now, we give a brief analysis about our competitor s market share.‟

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.

Performence

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. Huge food & drinks Varity.2. Food & drinks quality is good.3. Mainly Bangladeshi customer based.4. Product availability is more.

Weakness:

1. Low advertisement.2. Confusing add.3. Common add for all type of food or drinks.4. Market size is small.5. Distribution is time consuming.

Opportunity:

1. Potential customer.2. Converting non user.3. Production cost is low then others.4. Offer different packages.5. Add should be meaningful

Threats:

1. Direct competitor (Arong, Bd food)2. Government regulation.3. Selective Low price from competitor.4. 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 of 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 hesperidina

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 by 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 obtain 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 competitors.

Quality leadership: The main objective of this company that its responsibility to

provided best quality which they promised to their customers. 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

Cost of raw materials

Production cost

Marketing Cost

Profit Price/ unit Retailer’s Selling Price

Mango Juice (500ml)

14 3.50 1.50 3.00 22 25

Mango Juice (900ml)

25 6.75 3.25 5.00 40 45

Orange Juice (500ml)

15 2.50 1.50 3.00 22 25

Orange Juice (900ml)

30 6.00 4.25 4.75 45 48

Cocktail Special (500ml)

17 4.00 2.50 1.50 25 28

Cocktail Special (900ml)

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:

Business to Business (B2B)

Manufacturer

Agent Wholesalers

Dealer

Retailer

Business to Consumer (B2C)

Manufacturer

Agent Wholesalers

Dealer

Retailer

Customer

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

provided with a user ID and

password. This model is

best suited to service

businesses with high- value

products. It also works well

for collaborative projects or

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 of 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

public site

security

e-products

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 juicePro-forma income statement

For the year end 31st dec,2011

Revenue:

Net Sales

Less: Cost of Goods Sold:

Beginning Inventory

Add: Purchases

Freight-in

0.00

1,15,00,000.00

3,50,000.00

2,55,00,000.00

1,18,50,000.00

Less: Ending Inventory 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 29,00,000.00

Maintaince 30,000.00

Salaries & wages 10,90,000.00

Building Rent 16,60,000.00

Repairs 8,15,000.00

Depreciation (Land &Building) 1,50,000.00

Depreciation (Machinery& Equipment) 1,63,400.00Office Expenses 50,000.00

Miscellaneous 90,000.00

Professional Fees 1,70,000.00

Telephone 90,000.00

Utilities 99,000.00

Marketing Van 1,60,000.00

Packaging Cost 23,00,000 .00 97,67,400.00

Operating Profit 55,87,100 .00

Less: Interest Expense 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 juiceCash Flow Projections

For the year end 31st dec,2011

Particulars Details (Taka)Cash flow from operating activities:Net income 1,54,140.00

Adjustment to reconcile act income to net cash:

Add: Depreciation/ Amortion 3,25,000.00

Loss on sale of equipment 1,10,000.00Decrease in prepaid expenses 2,00,000.00Increase in accured expenses payable 54,000.00

Less: Increase in account receivables (2,80,000.00)Increase in inventories (95,000.00)Decrease in account payable (65,000.00)

Net cash provided by operating activities 4,03,140.00

Cash flow from investing activities:

Add: Sales of plant assets 95,000.00

Investments 5,00,000.00Less: Purchases of equipment (2,30,000.00)

Purchases of land (26,00,000.00)Purchases of building (10,63,000.00)

Net cash used by investing activities (32,98,000.00)

Cash flow from financing activities:

Add: Common stock 000000.00

Less: Paid of cash dividend (85,000.00)Redemption of bond (00000.00)

Net cash used by financing activities (85,000.00)Net cash Decrease in during year

(29,79,860.00)Add: Opening cash balance 11,00,00,000.00

Cash of the end of the year 10,70,20,140.00

Pran suger free juiceProforma Balance SheetFor the year end 31st dec,2011

Liabilities (Taka) Assets (Taka)Currents Liabilities Currents AssetsAccount payable 4,80,000.00 Cash and cash equivalents 4,75,00,000.00Supplier 8,05,400.00 Inventories 17,04,500 .00Tax payable 1,05,940.00 Bank 65,53,000.00Notes payable 9,35,000.00 Account receivables 13,00,850.00Accrued payable 4,73,000.00 Prepaid expenses 89,00,000.00

Marketable securities 85,00,000.00

Long-term LiabilitiesBank loan 3,46,69,800.00

Reserve fund 13,85,000.00

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

Shaj ahan 1,65,00,000.00 Machinery & Equipment 4,35,00,000.00

Shainur 2,75,00,000.00 Freezer 25,26,500.00Nafij 1,65,00,000.00 Furniture and fixture 18,54,325.00Shaila 1,10,00,000.00 Computer 11,25,000.00Sourav 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

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

Assessment of risk:Though it’s a new product, here is a big chance of frailer. It’s a new kind of product which is only for the diabetic’s patient and health conces people whom are very low in percentage. So, we have to analysis the risky factors before the new product marketing starts.

Company can reduce the chance of frailer by fallowing the below mentioned factors-

Evaluate the setup cost in right manner

To compete with the competitors in an innovative technical way.

Carefully analyze the economic condition of the country.

To improve technological and technical support of the company.

The company should justify the legal concern in appropriate way.

The company should have clear concept about market (national & international) industry demand.

Conclusion:

PRAN group of industries are now one of the most successful industry in our country. They are trying to increase their business line and their own brand. PRAN group also trying to beat the competitive market by doing different types of business. This new product idea will also help to increase the profit margin and achive the highest market share then competitirs.

………………

APPENDIX

Marketing Research Data:\In case of new product innovation, we have researched other competitors marketing strategy and their products. Among them, Acme is remarkable. We kind of designed our new sugar free product to bit this strong market leader.

As a secondary information sourse, we have used-

Website

1. www.google.com

2. www.tatamcgrawhill.com

3. www.pan bev.com

4. www.bplan.com

5. Business Plan Pro Software