biskitta (pak) - marketing project
TRANSCRIPT
-
7/31/2019 Biskitta (PAK) - Marketing Project
1/35
Startup Business Plan and new product launch
Ciit Sahiwal1
1. INTRODUCTION
Business Plan for a Startup Business
KING FOODS INDUSTRY Pvt. Ltd.
134-BIV Small Industry,
Sahiwal, Punjab,
Pakistan.
ZIP Code 57000
Telephone: +92-40-4240667
Fax: +92-40-4240667
E-Mail: [email protected]
-
7/31/2019 Biskitta (PAK) - Marketing Project
2/35
Startup Business Plan and new product launch
Ciit Sahiwal2
2. EXECUTIVE SUMMARYPlanning is a process that never ends for a business. It is extremely important in
the early stages of any new venture when the entrepreneur will need to prepare a
preliminary business plan. The business plan is a written document prepared by the
entrepreneur that describes all the relevant internal and external elements and strategies
for starting a new venture. It is an integration of functional plans such as marketing,
operations, finance, manufacturing, sales and human resources. As students of MBA we
have also created a business plan regarding biscuit industry.
Biskitto is a brand of KING FOODS Industry, in the partnership of four persons.
Its a newly established business which will start its operations from Jan 1st 2012. The
plan came to our mind because in Pakistan only old and traditional flavour biscuits are
available which being too low quality. Some local companies are manufacturing the
biscuits but they are not able to maintain the quality as well. The main product of the firm
will be biscuits named as Biskitto which is presented in three flavor; honey milk, salty
and black pepper.
Currently in Pakistan there is high trend of eating biscuits and cookies; however
the trend is continuously rising especially in the rural areas. This gives us a hope and
helps us to be optimistic. We can suppose that if our product is properly advertised and
awareness is created among the people, our firm will have a bright future. We will have
to adopt a marketing strategy which will not only make our product known to the
customers but also make them realize the importance and value of cookies and biscuits.
In this business plan, we start from introduction of biscuit sector and its future
outlook. Continental Biscuits Limited is one of the major competitors of this particular
sector. So its provide advantage to keep eye on its landmark strategies.
Description of our industry like its values, vision and mission statement can be
explain the reason that why we are here to start our business venture. Further our product
profile, its attributes and its brief specification also added. In production plan we explain
the production process, structure of production system like plant and machinery
-
7/31/2019 Biskitta (PAK) - Marketing Project
3/35
Startup Business Plan and new product launch
Ciit Sahiwal3
description and suppliers name are presented. Operational processes, flow of raw material
and all the daily activities are explained in this business plan as well.
In marketing plan chapter, all the marketing strategies like pricing, distribution,
promotions along with its budget and estimating future sales of our business are briefly
included. Our target customers would be the generation of 10 to 40 years of age without
any discrimination of the gender. The customers of big cities would be targeted belonging
to the upper and middle class. Biskitto is a consumer product so we will sell directly to
the retailers as initially business will operate on small scale. For distribution purpose own
vehicles would be purchased.
The overall supervision will be carried by the owners of the firm, however to
monitor the work of the employees effectively different managers are hired. Initially
three departments are established; production, marketing and finance. One manager is
hired for each department who would be held responsible for the performance of the
department. To avoid risk, the product is launched in the cities of Sahiwal Division. Our
plant is not running on full capacity however it has the capacity to fulfill the production
needs within different cities of Pakistan.
Without finance and investment our business will not be run on regular basis. So
the importance of funds and its circulation can be managed in every business plan. Thats
why financial strategies are adopted to make our business a profitable one. Projected
financial statements and its analysis are also added in this business plan.
Because of our endless efforts we are confident to achieve our vision and mission
as well as sales targets. We hope that this venture not only help us in future study patterns
but also beneficial in creating and developing our own business.
-
7/31/2019 Biskitta (PAK) - Marketing Project
4/35
Startup Business Plan and new product launch
Ciit Sahiwal4
3. BISCUIT INDUSTRY ANALYSISBiscuit Market:
Perhaps one of the most underrated, least talked about and low thrill industry, thebiscuit business has been making waves for the last few years. The biscuit market in
Pakistan currently has a number of players but is led largely by two main companies, one
of which CBL the manufacturers and marketers of the LU brand in Pakistan. Currently
the biscuit market stands at a staggering Rs. 10 billion and its growing potential has
attracted a number of companies with thousands of small-scale manufacturers functioning
along with other in the organized, large-scale sector.
Biscuits eating habit had been inculcated into the Pakistani frame work with
sipping of tea. The biscuit, a natural complement during evening tea or in large
receptions and parties has been a necessity at least in the upper income tier. The lower
tier though not as heavy in consumption could not abstain as well. The industry as
expected started growing at a fast pace. This led to the sprouting of the unbranded
neighborhood bakeries that made small quantities of large variety of irresistible snacks.
Market Forecast:
Following are the different factors that are analysis before we started our business
plan. They are the reasons behind our entrance in this biscuits industry.
Particulars Detail
Population growth rate 1.59% 2010est.
Total Industry production 1,75,000 tons (Rs. 10 billion)
Industry growth rate 23%
Market share of competitors 37% (CBL) & 30% (EBM)
Export production 10,000 tons ($ 1.5 million)
Consumption per person (per annum) 1.1 kg 2009est.
Following regulation and standards HACCP, GMP, ISO
-
7/31/2019 Biskitta (PAK) - Marketing Project
5/35
Startup Business Plan and new product launch
Ciit Sahiwal5
Future Outlook of Industry:
Food is the one of the most basic physiological needs of human beings. As we are
familiar with different food items like burgers, chips, breads and the most common item
is biscuit. So the current situation of food industry is rapidly growing. In biscuit industry,there are a lot of products are available in markets having different flavors like butter,
cream flavor, chocolate, zeera etc.
Now the basic question arise that what are the flavors that are not currently
provided in biscuit items. So we are here to fulfill that need. In future, this industry surely
has growth opportunities also have wide range of patterns that are currently uncovered.
Faster domestic changes in countrys economy, if we need any future change we
will do. It might be change in our marketing strategy or pricing and whatever the
requirement of the time.
Competitors Analysis:
In Pakistan with the increasing trends of cookies, there are many competitors that
are offering many biscuits brands, these companies are;
Continental Biscuits Limited English Biscuits Manufacturer Bisconni
But the CBL is our major competitor so we briefly analysis its history and others
business strategies.
ContinentalBiscuits Limited:
Company History:
Incorporated in 1984, the success story of LU in Pakistan began with the initiative
of Hassan Ali Khan (the founder of Continental Biscuits), who signed a joint venture
agreement with Generale Biscuits, the global manufacturers of the LU range, which was
-
7/31/2019 Biskitta (PAK) - Marketing Project
6/35
Startup Business Plan and new product launch
Ciit Sahiwal6
subsequently acquired by the Danone Group. CBL thus started its' operations in the
country since September 1986 with an initial strength of 200 employees.
The company first introduced its' innovative brands - TUC, Prince and Candi
which proved to be an instant success. With global merger of Generale Biscuit and the
Danone Group, a more comprehensive range of products and technical know-how
became available to CBL.
Corporate Overview:
Continental Biscuits Limited (CBL) was founded in 1984 following a Joint
Venture between the family of Hassan Ali Khan and the Group Danone, the French food
giants. In the year 2007 Danone sold their biscuits category to Kraft Foods of USA.
Today the company has a joint venture with Kraft Foods with a shareholding of 50.5%
and 49.5% respectively.
For more than two decades CBL is engaged in the manufacturing and marketing
of the brand LU. They have an array of products which are pre-eminent in the branded
biscuit business both in Pakistan and abroad. Their unrivalled portfolio of brands has
been meeting consumer needs for well over two decades and includes such favorites as
TUC, Candi, Prince and Tiger. They produce some of the best known crackers, cream
variants, plain and ingredient-based biscuits. Their manufacturing location based in
Sukhur is a centre of excellence which provides employment to 2200 people in the
region. Their marketing, sales, finance, commercial, IT and the human resources
functions are located in the head office in Karachi employing a total of 180 employees.
As a part of the leading FMCG their head office has close links both with the Regional
Offices of Kraft in UAE and their manufacturing plant in Sukkur.
-
7/31/2019 Biskitta (PAK) - Marketing Project
7/35
Startup Business Plan and new product launch
Ciit Sahiwal7
ContinentalBiscuits Products:
Biscuit name Biscuit packing Biscuit style
50-50
Bakeri
Candi
Gala
Prince
Tiger
Tuc
Wheatable
Zeera Plus
-
7/31/2019 Biskitta (PAK) - Marketing Project
8/35
Startup Business Plan and new product launch
Ciit Sahiwal8
Market Segmentation:
The market has been segmented primarily into adults and kids with further
segmentations in terms of taste profiles/Lifestyles and hence.
Loyalty in the category though medium to high has a high level of conjunctional
usage within households. Hence segmentation becomes more difficult in the true sense
with a two sets of presumably different audiences behaving in a similar way. Biscuits
traditionally have been positioned a in between meals snack with 80% consumption
coming from in home usage. Though strong innovations have come in to the industry
none of the big players have tried to move into new segments and or positioning.
Advertising and marketing in the industry has surpassed all other benchmarks in
the previous years with serious investments in brand building. Over Rs. 0.5 bn is
estimated to be electronic media spending in 2009 with a total marketing spending of no
less Rs. 1.0 bn; this has grown at estimated 25% per annum over the last few years.
However, the clarity in positioning and communication routes still fair below
international standards (reference India). We still strongly focus on the emotional, jingle
based, in home consumption family slice of life moments communications.
The prediction of the industry in next five years is of buoyant Rs. 35 bn with 4 to 5
key players (the remaining being edged out) with good margins and portfolio meeting
international quality and product standards.
Category products
Soft & Sweet Plain Sooper, Bakeri, Gala, Bravo, Treat
Cream Filling Prince, Rio, Cocomo, Jam Hearts
Salty Snacks TUC, Saltish
Indulgent/Sweet Candi, Chocolate Chip
Plain Glucose Munna, Gluco, Tiger
Ingredient Based Party, Zeera Plus
Healthy Wheat Slices, Wheatable
-
7/31/2019 Biskitta (PAK) - Marketing Project
9/35
Startup Business Plan and new product launch
Ciit Sahiwal9
4. OUR INDUSTRY DESCRIPTIONThe name of our firm is HATZ FOODS Industry Pvt. Ltd. that manufactures
biscuits and cookies. Our firm is the emerging biscuit manufacturing industry in Sahiwal
region. To continue to thrive as a business over the next ten years and beyond, we must
look ahead, understand the trends and forces that will shape our business in the future and
move swiftly to prepare for what's to come. We must get ready for tomorrow today.
Vision:
To provide a quality, cheap and state of the art products to
customers that not only satisfies their needs but also leads them
to superior.
Our vision serves as the framework for our Roadmap and guides every aspect of
our business by describing what we need to accomplish in order to continue achieving
sustainable, quality growth.
Mission:
To become premier biscuit manufacturing industry that focused on
constantly and categorically designing superior and convenient
products through contribution of ideas, enrichment the community.
We strive for honesty, fairness and integrity.
Values:
Excellence Integrity Passion Teamwork Commitment Proactive
-
7/31/2019 Biskitta (PAK) - Marketing Project
10/35
Startup Business Plan and new product launch
Ciit Sahiwal10
Industry Logo:
Product Profile:
Our product is a unique flavored also stylish, trendy and of high strength and
unique design, we are having flexible manufacturing facilities to produce biscuits as per
customer specification and needs. Our main product is Biskitto that is divided in three
flavors;
Biscuit name Biscuit packing Biscuit style
BiskittoHoney Milk
BiskittoSalty
BiskittoBlack Pepper
Competitive Advantage:
Major competitive advantage is our reasonable pricing along with best quality.
Secondly highly advertisement strategy at the local and national level will also help us to
gain a competitive advantage.
-
7/31/2019 Biskitta (PAK) - Marketing Project
11/35
Startup Business Plan and new product launch
Ciit Sahiwal11
Product Specifications:
We offer premium quality concentrates made entirely with natural ingredients that
are rich in Vitamins and energy. We used pure wheat flour, hydrogenated vegetable oil,
natural sugar, fresh honey, pure milk, invert syrup, salt, fresh eggs, natural black paper
and food color-caramel. Biskitto has the same energy and quality value as the standard
one does. Raw material is being purchased from selected reputed suppliers. The
packaging of the final goods is also considered.
Features and Benefits:
Biskitto may boost performance during working by activating the brain, removinguntimely food needs because it contains those natural and fresh ingredients thatare required after hard tasks like honey and pure milk.
We all know that when we work out, it's important to eat something. Sometimewe may not be so clear on is what exactly we should eat when we have no time.
So there is a need to fulfill it by providing Biskitto with a slogan HAR PAL
TASTE ZINDAGI KA.
Ordinary butter and milk biscuits, of course, are the classic choice. But with storeshelves everywhere full of biscuits, cookies of various flavored, what's an
exerciser to do?
Experts say it all depends on your taste -- as well as the length and intensity ofyour workouts. Here's a look at how the various biscuits measure up.
-
7/31/2019 Biskitta (PAK) - Marketing Project
12/35
Startup Business Plan and new product launch
Ciit Sahiwal12
5. PRODUCTION PLANProduction is a process of converting (In-put) raw material into (Out-put) finished
goods or services. Its like a back bone in any manufacturing organization. All the raw
material which is used in the production process is approved by the quality control
department. These materials should be according to the standards developed and fixed by
the quality assurance department. If in any case the material does not match with the
standards has a right to return it to the supplier.
Physical Plant:
The plant location for the manufacturing of Biskitto is at Small Industrial State,
Sahiwal.
Distance from Lahore is 178 kms.
Distance from Multan is 180 kms.
Size of land= 1800 Sq ft.
Approximate cost of land= Rs 22, 50,000 (Rs. 1250/ Sq Ft).
Approximate construction cost= Rs 10, 00,000.
Location Advantages:
Reasonable cost of land. Infrastructure facilities. Transportation facilities. Near to target market. Easy availability of skilled and unskilled labor. Availability of power
-
7/31/2019 Biskitta (PAK) - Marketing Project
13/35
Startup Business Plan and new product launch
Ciit Sahiwal13
Plant Machineries and Equipment:
Biscuit making plant have been designed to produce biscuits of various sizes and
shapes whether its cream or simple. Equipped with electric oven, biscuit dyes, cooling
system, stacker and several other accessories, our biscuit plant can easily produce varied
range of biscuits. Some of the features of our plant are as follows:
Easy usage
Low production cost Minimum wastage Long lasting Easy operation
Automatic Roller Machine
Number of machine= 1.
Cost of machine = Rs 40,000/-Size of machine= 6 x 8 x 6 (in feet).
Production capacity= 40,000 units/hr
Biscuit Plant Machine
Number of machine= 1.
Cost of machine = Rs 26,00,000/-
Size of machine= 12 x 16 x 5 (in
feet).
Production capacity= 50,000 units/ shift
(8 hrs).
Utilized capacity = 40,000 units/ shift
-
7/31/2019 Biskitta (PAK) - Marketing Project
14/35
Startup Business Plan and new product launch
Ciit Sahiwal14
Screen Printing Machine
Number of machine= 2.
Cost of each machine= Rs 22,000/- for
1 machine.
Size of machine= 4 x6 x 3 (in feet).
Production capacity = 20000 wrappers
per shift (8 hrs).
(Single machine)
Production Process:
-
7/31/2019 Biskitta (PAK) - Marketing Project
15/35
Startup Business Plan and new product launch
Ciit Sahiwal15
Suppliers:
The supplier plays an important role for supplying the raw materials on time, at
reasonable cost and at high quality. If the supplier fails then production of biscuits
becomes in danger so the industry have 3 suppliers to avoid the risk of falling short ofraw materials.
Name of Supplier---Premier Flour Mills Pvt. LtdA/341 Shadaab Colony,
Arifwala Road near By Pass, Sahiwal, Punjab, Pakistan.
Contact No: 092-40-xxxxxxx
E-mail: [email protected]
Name of Supplier---Ittifaq Honey House,582 Fish Market, Pakpatan Bazaar,
Sahiwal.
Phone No: +92-40-xxxxxxx
Name of Supplier---Mehboob Traders,659/A2 High Street, near Saddar Bazaar Chowk,
Sahiwal, Punjab, Pakistan.
Contact No: +92-40-xxxxxxx
-
7/31/2019 Biskitta (PAK) - Marketing Project
16/35
Startup Business Plan and new product launch
Ciit Sahiwal16
6. OPERATIONAL PLANFirm operational plan explain the daily operations of the business, its location,
equipment, people, processes, and surrounding environment.
Quality Control Department:
A system for ensuring the maintenance of proper standards in manufactured
goods, especially by periodic random inspection is known as quality control. Its used to
fulfill and verify requirements of quality.
Quality control is the basic organizational objective for Biskitto production.
Quality check is made from zero level to final products. For this purpose samples are
taken from the production to check the quality. This sampling is done after each an hour
or half an hour. These samples are tested according to the standards. Different lab test are
used to verify the quality standards.
In order to maintain the high quality the plant has a well equipped lab. Laboratory
is sufficient to measure the standards and to test mixture of different flavours. The well
equipped lab enables the smooth flow of production process.
Location:
We have purchased land and make a building in Small Industrial State, Sahiwal.
The building is located 3 Km Far From main the city of Sahiwal. Plant and machinery are
installed in it. All administrative departments and warehouse are in it. The building has
enough space for our operational activities. Due to present condition of the power system
of Pakistan we will have to arrange an alternative source of power like generator because
there are frequent break downs of power now a days in Pakistan which would severely
affect the production process. The use of alternative source of energy will be very
expensive and it will reduce our profit margin.
The location of the factory is very important for the suppliers and distributors.
The building hired by our firm is easily reachable by the suppliers. The factory has a lot
of parking area available.
-
7/31/2019 Biskitta (PAK) - Marketing Project
17/35
Startup Business Plan and new product launch
Ciit Sahiwal17
LegalEnvironment:
As such there are no special legal requirements to start up such a small business
like a partnership between to persons. We didnt find any requirements before starting
our operation anyways there are certain requirements we will have to fulfill after starting
our operational activities like we will have to produce biscuit and cookies according to
the standards established by the departments of health and environments.
Credit Policies:
For any business to run effectively credit selling or credit purchasing is very
important. There are very few businesses which can effectively be run without dealing in
credit. As our firm is in the introductory stage so we will have to sell on credit in order toenter into the market. Credit itself is not bad if proper credit policy is established and the
danger of bad debts is minimized.
We will make sales on credit for approximately 30 days. After 40 days if the debt
still remains unpaid we will remind the customer by giving him a phone call. After 55
days a letter is written to the debtor for the payment of the debt. After 75 days we will
contact our attorney to deliver a notice.
Flow of Raw Material:
Raw material can be transformed into finish goods by using many flows of
operations. Firstly if we make Biskitto Honey Milk, all required ingredients are put into
mixture machine. Then after mixing these ingredients its goes into oven machine, where
it bakes at 180 C. then its cut into roll shaped and packed. Then moved into warehouse
and in last distributed.
The flow chart is;
-
7/31/2019 Biskitta (PAK) - Marketing Project
18/35
Startup Business Plan and new product launch
Ciit Sahiwal18
-
7/31/2019 Biskitta (PAK) - Marketing Project
19/35
Startup Business Plan and new product launch
Ciit Sahiwal19
7. MARKETING PLANWith Biskitto we would first target the big cities of Sahiwal Division like District
Sahiwal, Okara, Pakpattan, Arifwala and Chichawattni. Our plant location would be the
best place between city and rural areas and towns, which is a very big advantage for us
because our majority of customers reside in city area and around the city.
The current demand of the product in three cities is estimated around 40lakhs/year
and is expected to go high because the customers becoming more aware from Biskitto
and the effective advertisement strategies has been helping Biskitto to grow and strongly
compete with others products. Fashion and lifestyle of the customers are also changing
has been an important factor for the growth of Biskitto.
Consumer acceptance and brand recognition are the major barriers for us to enter
in the market. We are new in this industry we need to first build trust, develop
relationship with suppliers, develop our brand and win customer loyalty. Biskitto quality
is as good as our competitors but its price differentiates from others products, we operate
at low margin to build market share excellent network of transport help us to reach
customers at right time, at right place with right product.
We are ready to provide the higher credit than the existing supplier initially. We
are committed to excellent quality of high strength and flawless products. The key to
success would be excellent service, quality products at a reasonable price and sales force
capabilities.
Marketing Strategy
Marketing objective:Within three years we would like to expand our business to rest of the big cities of
Punjab and other provinces and will become important domestic player in terms of
market share. In the end of 5th year of our business we will try our level best to gain the
maximum market share of cookies industry and would go for backward integration.
-
7/31/2019 Biskitta (PAK) - Marketing Project
20/35
Startup Business Plan and new product launch
Ciit Sahiwal20
Target market:Our customers would be at supermarkets, mini marts, departmental stores, and
other retail outlets etc. Our target market is three cities in Sahiwal Division and we are
focusing primarily on Sahiwal and Okara but there are also plan for other cities and towntoo.
Price Strategies:Price may not be the only competitive factor but in our business plan it will
become the major competitive factor. Along price another major factor affecting the mind
of the customer is quality. We have chosen a price that will give us the main competitive
advantage if we are able to maintain quality. Low pricing strategy we are using because
of large number of competitors in the market. We are using market penetration strategy
by keeping low price we would enter in to the market and expand our customer base and
increase our market share.
Distribution Channels:Distribution (or place) is one of the four elements of marketing mix. An
organization involved in the process of making a product or service available for use or
consumption by a consumer or business user.
As in the introductory stage we will make sales only in Sahiwal and Okara, so we
can distribute directly to the retailers. For this purpose we have rented three new vehicles
(Shahzore). We can take orders from different channels like web, mail order, phone calls,
through marketing staff. Most important source will be the marketing staff. Afterwards
when we will operate in different cities like Lahore, Faisalabad, Multan different
independent distributers will be hired.
Promotion:Our main purpose is to provide Biskitto for everyone at everywhere so first of all
we have to launch our product in the market targeting all classes. Our promotion policy
includes the following advertising mediums.
-
7/31/2019 Biskitta (PAK) - Marketing Project
21/35
Startup Business Plan and new product launch
Ciit Sahiwal21
Cable Adds---this is one of the very common, effective and as well as very inexpensive
way to market our product in the each city of Pakistan.
FM Radio---its almost the same marketing technique but more effective comparatively,
because most of people are living in rural areas so FM station provide benefit to reachthere with our product.
Pos Material---Pos material mean point of sale material this includes: posters and
stickers display in the stores and in different areas. Biskitto posters are displayed at
different retail stores for awareness purpose.
Billboards and Holdings---Biskitto is very much conscious about their billboards and
holdings. They have so many sites in different locations for their billboards and they try
to use in different times.
Other ---other promotional strategies are also considered like;
Discounts, Salesperson incentives, Friends network, Commission to sale person, credit to customers, catalogs, Word of mouth. PromotionalBudget:
Initially we have to advertise very heavily because the general perception of
Pakistani people is that the new comer in food industry is not provided quality products
but we are here to change this myth. Thats why we have to make a huge marketing
expenditure at the start i.e. Rs.10, 00,000 on the different promotional activities described
above. This amount will be treated as Deferred Cost which will be covered when the
business starts to run smoothly. After that we will have to spend Rs.300, 000 as ongoing
marketing expenditures. This cost will be charged to the income statement. This cost is
also to be included while calculating the cost of the product.
-
7/31/2019 Biskitta (PAK) - Marketing Project
22/35
Startup Business Plan and new product launch
Ciit Sahiwal22
Sales Forecast:
Product will be launched in January on a trial basis in Sahiwal. In March it will be
launched in Okara. To avoid any disaster huge investment will not be made initially.
After 1 year we will have to do market research again and any modifications needed in
the product would be made. Year 2011 sales are estimated as below on monthly basis;
Controls:
Marketing department:
1 sales manager will be responsible for the sale in three cities.
5 salesmen; 2 for Sahiwal, 2 for Okara, 1 for Pakpattan [first year].
Month Sales (Rs.)
January 240000
February 280000
March 400000
April 400000
May 460000
June 500000
July 440000
August 450000
September 460000
October 380000
November 360000
December 300000Total Sales 4670000
Sahiwal,
2335000
Okara,
1401000
Pakpattan,
934000
Sales Forecast
Sahiwal
Okara
Pakpattan
-
7/31/2019 Biskitta (PAK) - Marketing Project
23/35
Startup Business Plan and new product launch
Ciit Sahiwal23
8. MANAGEMENT AND ORGANIZATIONAs the business is in partnership so the business would be supervised primarily by
the owners. The hierarchy of the organization is as follows;
For each department a manager is hired to supervise the work of the relative
department. These managers are qualified in their fields. These managers are given
sufficient authorities and are held responsible for any malfunctioning.
The production staff is required to be well skilled because our product is directly
related to the health of the consumers. Any minor mistake can cause major loss which
will affect the reputation of the industry. So no compromise will be made on this.
The duty of the marketing staff is also very challenging because there is highly
competitive products are available in the market. The marketing staff should promote the
product effectively otherwise there is quite a chance for the failure of the business.
Secondly the marketing staff should make sure that our product is available in the market
and it should be properly displayed on the shops i.e. visible to the customers.
The finance department requires highly qualified staff to ensure that there is no
shortage of funds and the sales forecasting and achieving break even point are highly
considered. Availability of finance and purchasing raw material timely, collecting cash
from debtors, payment to creditors before due date; all leads to effectiveness of finance
department.
-
7/31/2019 Biskitta (PAK) - Marketing Project
24/35
Startup Business Plan and new product launch
Ciit Sahiwal24
Human Resource Plan:
The most important asset of Biskitto is the workforce alleged in it. In our
organization, the human asset will be considered as profit centre, not as cost centre.
Organization structure of the company shows the line of authority and the work function
in the concerned organization. The organization structure of the company is stated as
below. The employees in an organization are differentiated as;
Administration workforce Manufacturing workforce
Administrative workforce
The administrative workforce will include the management which includes the
people which are not involved in production of the product directly but they play
important role in generating desired profit for industry. The administrative workforce will
deal with the business policy and strategies required for the growth of the organization.
The projected administrative workforce and their payment are stated as below;
Name ofPosition
1st Year 2nd Year 3rd Year
No. of
Positions
Salary/
month
(Rs.)
No. of
Positions
Salary/
month
(Rs.)
No. of
Positions
Salary/
month
(Rs.)
FinanceManager
1 16000 1 18000 1 20000
ProductionManager
1 16000 1 18000 1 20000
SalesManager
1 16000 1 18000 1 20000
Clerk 1 9000 1 10000 1 12000
Salesman 4 8000 6 9000 8 10000
Guard 1 6000 1 6000 2 7000
Asst. SalesManager
1 15000
-
7/31/2019 Biskitta (PAK) - Marketing Project
25/35
Startup Business Plan and new product launch
Ciit Sahiwal25
Manufacturing workforce:
The manufacturing workforce will be the people who are actually working on the
machine and they are related to the plant level processes. They are the people who are
actually producing the desired product. It includes the plant-level employees and deals
with daily functions in industry.
The manufacturing workforce and their payment are stated as below;
Various HR related issues:
Bonus
The bonus will be given as per the guidelines provided by the law. As the industry
is started newly, the rate of bonus will be minimum, i.e. 8.33% of the annual income. The
rate of bonus will be revised in coming years depending on the net profit of the industry.
AttendanceEvery employee is bound to present in the company premises during the working
hours. The employee is supposed to make an entry before entering in and leaving
industry premises.
Annualleave with wagesEmployees are liable to annual leave with wages if they complete 240 days in a
calendar year. So the employee will be entitled for one leave for 20 days actual working.
Name ofPosition
1st Year 2n Year 3
r Year
No. of
Positions
Salary/
month
(Rs.)
No. of
Positions
Salary/
month
(Rs.)
No. of
Positions
Salary/
month
(Rs.)Supervisor 1 10000 1 11000 2 12500
Skilled 1 8000 2 9000 2 10000
Unskilled 5 6000 6 7000 8 8000
Helper 2 4000 2 5000 3 6000
-
7/31/2019 Biskitta (PAK) - Marketing Project
26/35
Startup Business Plan and new product launch
Ciit Sahiwal26
HolidaysEvery employee will be entitled for holiday for 15 days (including National
holidays). It will be decided as per the list of holidays provided by Punjab state.
Working hoursThe minimum hour of working is 8 hours per day. There will be six working days
per week. If required, the employee can do overtime but the total no of working hours
should not exceed than 14 hours in a day.
Safety and healthAll the machinery will be properly fenced with safeguard. The machines which
are involved are so sophisticated and safe, that it reduced the probability of accidents in
industry. The industry will also pay attention to the guidelines for the safety and health
provided by Ministry of Labor.
BenefitsDifferent benefits such as disability benefit, sickness benefit, dependant benefits
and group insurance etc. will be provided by the company under the law.
Record MaintenanceThe record will be maintained related to the workforce such as time keeping and
attendance leaves, and other issues as well.
Measures for motivating our employeesAs we stated before, the human workforce is the highly-ranked source for the
INDUSTRY. Hence we are paying proper attention to this area of concern. We will be
handling the issues related to employees with great care.
At initial stage, we are planning to schedule a small meeting every Saturday
before leaving the premises. The meeting would be conducted in presence of every
employee of the industry. This session will be for open discussion. Here, the workman
-
7/31/2019 Biskitta (PAK) - Marketing Project
27/35
Startup Business Plan and new product launch
Ciit Sahiwal27
can discuss any important point related to working condition and such issues. This will
help in enhancing the communication between different departments of the organization
and help to reduce disputes. Also we are bound to maintain proper working environment
for our employees. The employees will be provided by safe and excellent working
condition, so the desired productivity can be achieved.
Professional and Advisory Support:
The business is under the ownership of four persons so the final decision making
authority is with the four partners. The legal matters are supervised by our attorney.
The firm is not operating on a very large scale yet we have established a proper
accounting system. The accounts department records the daily transactions, manage
account receivable and payables. All the important decisions are being taken with the
advice of all the three managers whose knowledge provides guide lines for the important
decisions to be taken. All the cash involved in the business is kept in Bank Alfalah
Limited.
-
7/31/2019 Biskitta (PAK) - Marketing Project
28/35
Startup Business Plan and new product launch
Ciit Sahiwal28
9. ASSESSMENT OF RISKProduct Market Risk:
Customer loss Competition Increases Product Demand Decreases
Financial Risk:
Inflation Default on debt Exchange rate changes
Legal Risk:
Shareholder lawsuits Employee discrimination lawsuits
Tax Risk:
Income tax increases VAT and Excise tax increases
Input risk:
Input price increases Labor strikes Key employees leave Supplier fails
Operational Risk:
Machinery breakdown Product defect increases Inventory Obsolescence
-
7/31/2019 Biskitta (PAK) - Marketing Project
29/35
Startup Business Plan and new product launch
Ciit Sahiwal29
SWOT analysis:
Strength
Low cost with high quality
Dedicated & punctual staff
On time delivery
Favorable access todistribution networks
Weakness
Entry
Inexperience
High cost structure
Limited area of operation
Not able to enjoy economy ofscale
Opportunities
Scope of export
Large market
Changing of lifestyle &fashion
Threats
Large number of competitors
Threats of substitute product
New regulation
SWOT
Analysis
-
7/31/2019 Biskitta (PAK) - Marketing Project
30/35
Startup Business Plan and new product launch
Ciit Sahiwal30
10.FINANCIAL PLANAssumptions:
Inflation rate may vary between 14%-20%. Sales target will be achieved according market research and production capacity. Capital cost may vary but marginally.
Financial policies:
The rate of depreciation of fixed assets is 10% per annum Purchases will be purchased on 45 days credit. Sales will be made on one month credit. Raw material will be in stock for 1 month for 1st year and for 15 days from 2nd
year onwards
Finished goods will be in stock for 15 days. Extra cash will be invested in treasury bills and government bonds. Profit margin will be 6 % on cost of capital
Startup Expenses and Capitalization:
Start-up Requirements Cash needed (Rs.)
Plant and Machinery cost 26,84,000
-
7/31/2019 Biskitta (PAK) - Marketing Project
31/35
Startup Business Plan and new product launch
Ciit Sahiwal31
Stationery 20,000
Land 22,50,000
Construction Cost 10,00,000
Computers 40,000
Consultants 10,000Furniture 3,00,000
Brochures 20,000
Utility 20,000
Cash Required 30,00,000
Total Requirements 93,44,000
Capitalsources:
Particulars Amount (Rs.)
Partners Contributions
75,00,000
Bank Loans 25,00,000
Total 100,00,000
KING FOODS Industry Pvt. Ltd.
Projected Income Statement
-
7/31/2019 Biskitta (PAK) - Marketing Project
32/35
Startup Business Plan and new product launch
Ciit Sahiwal32
KING FOODS Industry Pvt. Ltd.
Projected Balance Sheet
For the year ended ..Amount (Rs.)
Sales 63,53,400
Less: cost of goods sold 30,76,560
Gross margin
32,76,840
Less marketing and adman. Expenses
marketing expense 10,00,000
Salaries 8,10,000
Depreciation 80,000
Electricity 2,25,000
Telephone 60,000
Interest 16,000
Packaging 1,50,000
Less Total expenses 23,41,000
Earning Before Tax 9,35,840Less Taxes @ 30% 2,80,752
Net Profit 6,55,088
-
7/31/2019 Biskitta (PAK) - Marketing Project
33/35
Startup Business Plan and new product launch
Ciit Sahiwal33
For the year ended ..Amount (Rs.)
Liabilities & OwnersEquities
Share Capital 75,00,000
Bank Loans
25,00,000
Sundry Creditors 5,68,000
Net profit 6,55,088
TotalEquity 112,23,088
Assets
Fixed Assets
Furniture 12,00,000
Land & building 30,50,000
Machinery 26,84,000
(Depreciation) (80,000)
Net Fixed Assets 58,54,000Current Assets
Cash 5,30,468
Closing Stock 12,45,088
Sundry Debtors 6,66,284
Investment (short term) 29,27,248
Totalcurrent assets 53,69,088
Total assets 112,23,088
KING FOODS Industry Pvt. Ltd.
Projected Cash Flow Statement
For the year ended ..
-
7/31/2019 Biskitta (PAK) - Marketing Project
34/35
Startup Business Plan and new product launch
Ciit Sahiwal34
Particulars Amount (Rs.)
Inflows
Share capital 75,00,000
Loan from Banks 25,00,000
Sales 63,53,400
Total Inflows 163,53,400
Outflows
Fixed assets 58,54,000
Current assets 29,11,372
Purchases 24,76,560
Direct expenses 6,72,000
Indirect expenses 23,41,000
Current liabilities 1,56,000
Total outflows (158,22,932)
Netcash inflows 5,30,468
BreakEven Analysis:
A break even analysis predicts the sales volume, at a given price, required to
recover total costs. In other words, its the sales level that is the dividing line between
operating at a loss and operating at a profit.
BEP in Units = Fixed Cost / (Selling Price Variable Cost)
= 16, 30,433 units
BEP in Rupees = BEP in Units Selling Price per Unit= 16, 30,433 x 3
= Rs. 48, 91,300
Break Even Point will be achieved in 9.8Months.Appendix
-
7/31/2019 Biskitta (PAK) - Marketing Project
35/35
Startup Business Plan and new product launch
Market research data Price lists from suppliers.
ooo