I ntroduction

The process of setting up a business is preceded by the decision to choose entrepreneurship as a career and identification of promising business ideas upon a careful examination of the entrepreneurial opportunities. Generation of ideas is not enough; the business ideas must stand the scrutiny from techno-economic, financial and legal perspectives. That is, after the initial screening of the ideas that do not seem promising prima facie, so I have conduct an in-depth examination for the ready to drink hot tea ,before settling for the one where I would like to exert my time, money and energies. I have prepare a business plan that will serve as the road map forEffective venturing, I may require institutional funding (in my case it is necessary to do so). Setting up of new business enterprises is a very challenging task, I may likely to encounter many problems enroute. I should be aware of these problems as to forewarn means to fore arm!

OBJECTIVE

Our business strategy will revolve around the need to provide quality tea to our various target customers, in the process fully satisfying their needs. This shall be undertaken through the implementation of high quality control standards and technological innovations, as well as the recruitment of a professional production and sales team, and the production of good quality marketing material designed to cater for various kinds of customers. This marketing material shall be professionally done so as to be reflective of our intended image and reputation. We shall position ourselves as a quality manufacturer that strives to provide quench fulfillment, enjoyment, reliability and a good image. We intend to establish a good rapport with all the relevant stakeholders.

With time we intend to establish our presence on the World Wide Web, which will increase the knowledge of our products to the various market segments we shall be targeting. Web presence is a natural objective in reaching the appropriate potential customers. Well-done brochures,

Hence this will undoubtedly generate increased sales of our products.

Company profiles and business cards often have a triggering effect on clients contemplating on ordering our products.

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Our objectives will revolve around the following guiding principles:

Initial stage

Conduct a feasibility analysis of the proposed business ideas in regard too Marketability

o Technical viability

o Funding

o Legalities

Prepare a business plan

Understand basic startup problems

After establishing business

Provision of a great work environment, treating each other with respect and dignity.

Apply high-quality standards of excellence to all business processes.

Develop enthusiastically-satisfied customers all of the time.

Contribute positively to our communities and our environment.

To continuously formalize and measure cross-functional working communication so as to ensure that the various departments work harmoniously towards attainment of company objectives.

To instill a culture of continuous improvement in beating standards of customer satisfaction and efficiency.

Fully commit to supporting growth and development in the economy.

Ultimately we intend to create a stable business platform that will create prosperity for all those involved in the business venture at all levels, and to uplift unemployed Botswana’s who are prepared to participate in this venture.

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Products and its end users, application and consumer

Ready to drink tea Breweries produces products of high quality and impeccable taste. The company currently produces two main lines of products, namely thrust& zero. All two have unique properties that will enable them to excel on the market. We will also be watching for technological developments in India and overseas, allowing us to be first on the market and produce high-quality products through cost effective means. In addition the company will select suitable products for production under license.

Our current product listing is as follows:

1. Thrust (normal flavored tea)It is the only product available in the market having self heating mechanism, our ready to drink tea has the superior flavor and texture, smooth, with no rough solids. Its content is (confidentiality).

2. Zero (calories free)Although it is similar in appearance to thrust and it is the only product(ready to drink tea) available in the market which have zero calories and with no sugar in it, our sugar free tea has the superior flavor and texture, smooth, with no rough solids

This denies the people in rural area access to these delicious and low calories product. In fact, it serves to travelers’ travelling in trains, airlines and buses.

It directly targeting executive persons as it contains low calories and flavoring elements with self heating mechanism so it directly become a product of premium segment product. We have the ability to produce a long life thrust and zero that needs no heating, it can be sold from the shelf in the same fashion as cold drinking and similar products. This means that it can be bought by consumers who might not always have access to heating facilities, to be consumed later, as a food whilst way from home, or as an emergency food supply. This is available in several flavors, such as normal, elichci, ginger and masala and other xx flavors that the market might want. It is also a good product to use during travelling and executive meeting and similar events.

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C ompany D escription

Particulars of the Enterprise

i) Name of the Product(s): Thrust & Zero Product Code:______________________

ii) Name of the Unit and Address: A.D Corporation Pvt Ltd, GIDC Baroda, Gujarat, India

iii) Telephone No. Office: 98098355086 Factory:______________

iv) Name of the owners & Partner in Block Letters

AVANEET DWIVEDI (OWENER) ISHA VORA (PARTNER) ALOK BHATTACHATRGEE (PARTNER) JATIN KANCHANI (PARTNER)

v) Constitution of the Firm: Partnership Pvt. Ltd.

vi) Qualification both Academic/Professional of the Entrepreneur(s)

Name: - AVANEET DWIVEDI Qualification: - B.TECH (FOOD PROCESSING TECHNOLOGY),

- M.B.A (AGRIBUSINESS) ix) Location/Proposed locations of offices: Ahmadabad, Baroda, Surat & Vapi

x) Name of the bank with which you want to deal with

NABARD SIDBI

xi) Owner and partner investment is 65% of total capital

xii) Company will get remaining 35% capital from bank as loan at 15% rate

xiii) Company will form in January 2009

Why to form company

We have unique idea to produces a product which will be the only product available in the market having self heating mechanism, it is ready to drink tea and it is targeting very attractive market, right now no one is present in market with this idea so we are trying to commercializing this idea into profitable business.

Functions and key values of our product

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Provide Hygienic tea Availability to consume it at any time and any places Self heating mechanism (no need to heat up the tea) It will act as a status symbol for the consumer

Plan to change product in worse condition in future

In future if conditions are not suitable for our business then we will diversify and change our product. We will change our product (ready to drink tea) to milk tea powder and milk coffee powder. Reason for producing this product (milk tea powder and milk coffee powder) is basically the requirement of machines for (milk tea powder and milk coffee powder) is same which is required for ready to drink tea.

Industry in which company operates

Our company operates in brewery industry but serves in ready to drink sector it is because it’s a new product. Our company main business is to serve hot hygienic tea and which can be consume any where any time at any place.

Industry growth

The total turnover of the tea industry is around Rs. 10,000 crores.

Since independence tea production has grown over 250%, while land area has just grown by 40%.

There has been a considerable increase in export too in the past few years. Total net foreign exchange earned per annum is around Rs. 1847 crores.

The labour intensive tea industry directly employs over 1.1 million workers and generates income for another 10 million people approximately. Women constitute 50% of the workforce.

Trend in industry which provides opportunities and challenges to our business

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Market TrendsOur target markets are increasingly growing towards recognizing the difference between poor quality brews and those of high quality. This development is an important trend for us as it represents our target market. We now are having an increasing number of people who appreciate the traditional brews whilst living in the urban areas. With this in mind we intend to ensure that our packaging is respectable and attractive.Today's extremely stressful work environment dictates that individuals consume healthy drinks especially in the summer season, this presents an opportunity that we may exploit, marketing the health aspect of our beverages

Opportunities Specific niche: Appreciation for high-quality brew, enjoyment, and refreshment (and

integration therein). The new generation of individuals and families has a far greater appreciation of attractive

packaging and have very high adoptability of new product by(Diamond W.D., and Campbell, L. (1989) “The Framing of Sales Promotions: Adoptability of consumer play important role” Advances in Consumer Research, Vol. 16, pp. 241-247.) now they are very much status conscious.

Current drive by government and specialized institutions such as the Indian Export Development and Investment Authority towards export of locally manufactured products.

Internet marketing and sales--though still in its infancy. Increasing number of foreign firms, especially from South Africa looking at penetrating

the market.

ChallengesThe present growth in the market may result in market saturation, through competition. This competition could emerge from a variety of given sources including: Established mass-market companies' development of new lines and vertically integrating

so as to be totally in control of supplies and products being sold on the respective markets.

New marketing strategies and tactics by established companies like nestle bru etc Existing competition.(Nescafe machine) Other start-up companies generated by healthy economic growth nationwide. Intolerable price increases by suppliers may occur. (Due to high inflation)

T arget M arket 6

o We are initially targeting only on Gujarat and in also Gujarat also we are targeting only on urban area like Ahmadabad, Baroda, and Surat .Plant for production will be in Baroda.

Population density of cities which are our target market:Ahmadabad -3,769,846Baroda -1,200,981Surat -4,505,000

o Details relate to area where our business will serve

Basically our business will serve only Ahmadabad Baroda and Surat cites initially and our targets populations are travelers and business executives these are the following reason why we selected these cities. All three cities have airports (domestic and international) These cities having railway stations which are the biggest junction of Gujarat In these cities largest bus depot of Gujarat are builds which connects all cities of Gujarat

(urban, semi urban, rural) with these cities (Ahmadabad Baroda and Surat). In these cities large number of MNCs, cooperates house and company are present which

make these cities as a business hub of Gujarat, therefore in these cities large number of people are employed, and huge number of people are travelling daily.

o General traits of customers Consumer profile

Age: 20 to 60 year Income: above Rs 200000 per year Occupation: professional’s businessman’s/industrialists Spending ability: high Lifestyle: outdoor-oriented Gender: male, female Psychographic: Experiencers Personality: status conscious Consumer behavior: innovator, early adaptor

o Factors influence customers purchasing decision for my product are following

Feature of my product( self heating mechanism) Customer service (getting hot tea at anytime and at any place) Packaging of my product (my product have unique packaging) Price of my product Attitude of other(other person may influence it can have strong negative or positive

attitude toward my product)

The final decision of purchasing is done only by final user of my product, frequency of purchasing is 2 to 3 times in a day. And my product is available in two different quantites 100ml and 200ml cans.

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o Size of target market

Total population of cities (source : NSSO national sample survey organization) Population of Ahmedabad: 3,769,846 Population of Surat: 4,505,000 Population of Baroda: 1,200,981

Tea consumers in following cities (source: www.indianreports.com) Ahmedabad : 79% of population Surat: 81% of population Baroda: 74.4% of population

Percentage of people having income more than Rs180,000 in following cities(Sources: www.itreturn.com) Ahmedabad : 39% of population Surat: 43% of population Baroda: 27% of population

So our targeted market size will be Ahmedabad: 3,769,846 X 0.79 X 0.39 = 1161489.5 Surat: 4505000 X 0.81 X 0.43 = 1569091.5 Baroda: 1200981 X 0.744 X 0.27 = 241253

o Factor influence size of the potential target customer which are as follow

Relative advantage of product: degree to which the our product (ready to drink hot tea) is superior to existing product (tea from tea vending machine)

Compatibility of product: degree to which the our product (ready to drink hot tea) matches with value and expectation of consumer

Simplicity of product: degree to which the our product (ready to drink hot tea) is relatively easy to use

Divisibility of product: degree to which the our product (ready to drink hot tea) can be made know to consumer

Communicability of the product: degree to which the our product (ready to drink hot tea) benefits can be made know to the consumers

Affordability: degree to which the our product (ready to drink hot tea) economical

Social approval: degree to which the our product (ready to drink hot tea) will gain social or community acceptance

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Readiness to try: degree to which an individual is relatively earlier in adopting new product

According to the Trade Department, the tea market has been growing at a steady rate of 7% per annum although it is projected to increase slightly in 2008 and 2009 & Income level per capita is increased by 4 to 5% only so we can expect to grow market by 4% yearly

o Changes are occurring in the makeup of the market

Macro-environmentOver the last few year abnormal weather has affected many parts of India, during the key summer season. It has been extraordinarily severe with heavy rainfall, flooding and there definitely promises to be low temperatures, particularly in the winter season in eastern region of India. This is likely to have an adverse effect on our initial financial performance, though marginal as consumption levels may decrease slightly.At a large scale, market research demonstrates that the tea industry market is growing and changing. Generally there is a trend toward more appealing and attractive tea brews as potential customers either are moving to the urban areas as a result of urbanization or are satisfied with an existing tea brew in their area. Research indicates that those in the rural areas are often satisfied with the existing ted brew due to lack of access to other higher-quality ted brews, whilst the new generation of executives being more educated and aware of the global environment wants to be seen drinking something attractive and recognized by others--status recognition. In addition this same market is not only more image conscious but appreciative of a quality tea brew as it is more selective. Therefore with the emergence of this generation of individuals, the appreciation of quality tea brews and packaging, dictates that our product lines will be popular.

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13/2% Innovator

21/2%Early adopter

34% Early majority

34% Late majority

16% Laggards

Times of adoption

Private sector development has been recognized as a vital ingredient in creating employment and training opportunities, and realizing the national goal of sustainable economic diversification. In addition to the country increasingly becoming a tourist destination, we foresee the demand for our products especially in the resorts and lodges airlines railway station etc where it will be promoted. Through undertaking of our professional business activities we foresee that it should not be too difficult to gain market acceptance provided we deliver the final product on time, of good quality, and at competitive prices.

TechnologyA.D.corparation Ltd will strive to maintain the latest and most efficient assembly technology so as to ensure quality-tea brewed beverages, and maintain low production costs ultimately benefiting the consumer. Keeping abreast with technological developments will ensure we gain and maintain a competitive advantage utilizing the latest production techniques.

Future ProductsIn putting the company together we have attempted to offer enough products to allow us to always be in demand by our customers and clients. The most important factor in developing future products is market need. Our understanding of the needs of our target market segments shall be one of our competitive advantages. It is critical to our effort to develop the right new products. We also intend to have what we call a "core product engine" that will be the foundation of future products. This shall be established in time as we determine our core product. In the future, A.D. Corporation will broaden its coverage by expanding into additional markets and additional product areas. In doing so we will strive to ensure that it is compatible with the existing products and assembly technology.

o Fulfillment of consumer needs through

1. The key fulfillment and delivery will be provided by the principals and values of the business. The real core value will be the provision of a thirst quenching refreshing brew, provided by a combination of quality ingredients, good production techniques, hard work, and education (in that order). Hence we intend to ensure that the products we produce are always of high quality and standards, and available to the relevant target market.

2. We will turn to reliable farmers, suppliers and distributors who will assist in ensuring that the products are delivered timely and are of the highest quality. We will also rely on these stakeholders for relevant information on the market situation (trends, consumer tastes, feelings and comments amongst other things).

C ompetitors A nalysis

Strengths

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Strategic market segmentation and implementation strategies.

Diversified market segments: ensuring the lack of dependency on one particular market.

Combination of skills in directorship. The directors intend to jointly develop business strategy and long-term plans, having wide experience in product and business know-how.

Establishment and maintenance of strong capital base.

An aggressive and focused marketing campaign with clear goals and strategies.

We have a New innovative product so we have the benefits of first mover

Weaknesses

Lack of a reputation in comparison to our competitors.

The introduction of new organizational practices and personnel who have not previously worked together presents a challenge to the company.

A limited financial base compared to the major players in the industry.

Lack of clear-cut channels of distribution.

o Competitive advantage

Specific niche: Appreciation for high-quality brew, enjoyment, and refreshment (and integration therein).

The new generation of individuals and families has a far greater appreciation of attractive packaging (image conscious).

Product is strongly differentiated from other rival like Nescafe tea vending machine

Attractive targeted marketed

First mover of market have learning curve effect so our company have learn something from experience backward integration, how to reduce cost of production etc.

o Obstacles face as a player trying to enter in the market

The present growth in the market may result in market saturation, through competition. This competition could emerge from a variety of given sources including:

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1. Established mass-market companies' development of new lines and vertically integrating

so as to be totally in control of supplies and products being sold on the respective

markets.

2. New marketing strategies and tactics by established products and companies.

3. To know core competency of Existing competitors.

4. Other start-up companies generated by healthy economic growth nationwide.

o Competitive Edge

Our competitive edge will be our dominance of access to previously untouched areas,

customer orientation and traditional high-quality tea through stringent quality control.

Although Nescafe tea vending machine dominates the local market, it does not penetrate

the untouched areas.

Though we shall be serving different market segments we intend to focus on by doing

niche marketing.

M arketing A nd S ales P lan

Market Trends

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Our target markets are increasingly growing towards recognizing the difference between poor quality tea and those of high quality. This development is an important trend for us as it represents our target market. We now are having an increasing number of people who appreciate the traditional tea whilst living in the urban areas. With this in mind we intend to ensure that our packaging is respectable and attractive.

Today's extremely stressful work environment dictates that individuals consume hygienic drinks especially in the monsoon season, this presents an opportunity that we may exploit, marketing the hygienic aspect of our tea.

Industry Analysis

Industry analysis information is presented in the following subtopics.

Competition and Buying Patterns

The key element in purchase decisions made at the A.D.Tea Breweries Ltd customer level is the availability of an affordable, thirst-quenching product of good quality. The most important factor in this market is the distribution network. This is particularly so considering the good distribution network.

Main Competitors

Being in a predominantly monopolistic market structure, competition in the tea manufacturing market as a whole is not that intense (in terms of numbers) at the current time due to the dominance of Nescafe tea vending machine, which has been on the market for a relatively long period of time. Cognizance should also be taken of home tea who represent competition on our intended market. However upon closer research we identified several niches in the market such as tea stalls, café, restaurants etc that we may exploit, not wanting to confront one-on-one with them.

In general, our competition will be stiff, as we intend to penetrate the high to medium earning customer. At the same time we shall be differentiating ourselves from Nescafe tea vending machine, tea stalls, café, restaurants etc. We intend to market ourselves in such a way that with time competitor customers will choose our products over competitors' on the basis of our higher quality, thirst-quenching tea and give assurances of hygienic.

Nescafe tea vending Machine

Arguably the largest and most reputable manufacturer, supplier and marketer of tea in the country, Nescafe has been on the market for a considerable period of time now. Part of the large and extremely reputable conglomerate, currently the dominant domestic producers of ready to

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drink tea, nescafe is able to take advantage of the financial, managerial and technical clout that it has through International market. Due to its size it enjoys an economy of scale and thus the competitive advantage of being able to offer low priced tea in large quantities to its target markets.

Nescafe main products is tea vending machine and its ready to drink powder pouch of tea , which will be one of our main competitor products. Tea vending machine and its ready to drink powder pouch of tea is currently mass marketed in the whole of India and is popular amongst the urban and town folk. This is mainly because it is in its growing stage. However a frailty of Tea vending machine and its ready to drink powder pouch of tea is that the product does not maintain freshness for a long period. Hence A.D.tea breweries Ltd intends to take advantage of this weakness.

Nescafe

Recent financial results from Nescafe Holdings indicate that the organization as a whole has continued to perform exceptionally well . Turnover grew by 42% whilst operating profit is up 60% from $21.5 million to $34.5 million. For the 12 months to 31 March 2006, volume growth exceeded non-mining GDP growth by more than 2%, resulting in turnover growth of 12%. According to the audited results, higher volumes and turnover coupled with greater productivity and stringent cost controls translated into excellent earnings growth. With this in mind we strongly believe that there is an extremely lucrative market we may exploit.

Market segmentation

A.D. tea Breweries Ltd will be focusing on the corporate and working class who appreciate good quality traditional tea. The working class will range from the miners who constitute a large portion of the market, to administrative personnel appreciative of good quality traditional tea. The corporate or managerial segment will constitute those managers who though aware of their image and reputation, want to put aside their ties and jackets after hours and/or on weekdays to drink good traditional tea, easily accessible in the urban areas.

Our most important group of potential customers are those who want to have an enjoyable time whilst drinking a good refreshing tea beverage. They do not want to waste their time making their own tea brew, but appreciate a good quality tea at a reasonable price.

We also intend to appeal to the foreign and local tourists who would be looking at experiencing traditional foods and drinks, a change from the usual beverages they often have

Positioning of company in market

We intend to provide a quality tea that not only quenches one's thirst and gives refreshment at anytime & anywhere but also enables one to enjoy themselves and be proud of it.

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Our products will a status building product with quality, hygiene and with attractive packaging which give instant refreshment.

Marketing strategies

Our marketing strategy emphasizes focus. This will be the key. We are a relatively new company and hence must focus on certain kinds of products with certain kinds of consumers. Initially A.D.Tea breweries Ltd will focus on the local market and in the urban and previously inaccessible areas where there is a large market for our products. Hence the form of growth that shall be initially pursued will be that of organic growth mainly due to limited resources and the need to instill confidence in our products. The target customers will include key decision-makers the aim being to obtain an initial order and fully satisfy the customer from then on.

We are currently building image and awareness through consistency and distinctiveness in our product provision.

We intend to focus on delivering quality products that in turn produce good referrals, which can then generate revenue. We intend to always have a relatively heavy personal selling component to our marketing strategy as previously discussed. Hence we intend to always be active in personal relationships with clients and strategic allies keeping abreast of their needs and wants.

We are focusing advertising on several key media.

We intend to achieve growth by creating a more enthusiastic customer culture than that of our competitors. All criteria from price competitiveness to staff attitudes are to be initially measured six-monthly, and then on a more regular basis as time goes on. The results will go down to depot level and be compared with the overall target. This form of consistent measurement of strategic goals will ensure that the organization remains focused on its goals and objectives, making any necessary adjustments where need be.

Value Proposition

Our value proposition is offering our customers refreshness and enjoyment at reasonable prices ensuring peace of both body and mind. Hence we intend to:

1. Market the benefit, not the product.

2. Ensure customer satisfaction.

3. Develop long relationships.

4. Market the company.

This value proposition shall be communicated through advertisements, personal selling, sales literature and catalogues, and referrals that emphasize how the company is able to provide refreshment, enjoyment and fulfillment to the customers.

Marketing mix

One core element of our marketing strategy will be that of differentiation from our competitors. In terms of promotion, we intend to sell our company as a differentiated strategic ally, not just

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our products. In price, we intend to offer extremely reasonable prices in comparison to the competition and we need to be able to sustain that. Market penetration through premium pricing which will focus on the upper-end of the market which is premium segment.

Product strategy

Our product marketing will emphasize the benefits of consuming our products, including refreshment and enjoyment of top-quality tea with hygiene. We intend to sell the opportunity to enjoy oneself amongst friends, family and/or colleagues. This will come out in our advertising, delivery and collateral such as sales literature and business cards. Our product marketing's most important challenge will be the problem of being accepted and appreciated on the market as a provider of quality products. Hence we intend to not only meet customers' expectations but to exceed them, initially targeting a market share of 6%.

We intend to focus on the individual or group who want to enjoy themselves through the consumption and sharing of refreshing hygienic tea. However, not wanting to limit our horizons in the initial period, we intend to be continually looking out for opportunities that we may exploit. In all cases we intend to provide a thorough understanding and appreciation of the products to the customer and the benefits of consuming them.

Pricing Strategy

Initially our prices will not be under our control but dictated by the market conditions prevailing at the particular time. This is particularly so in the case of products which are also produced by our competitors, as they are often representing a scale for consumers. However we realize that we must charge appropriately for the quality and work we shall be providing, in addition to the distribution of the products. Hence we intend the price will accommodate the mark ups prevailing in the industry, as well as our own costs. To be competitive in the market we intend to offer discounts to customers making bulk orders, which are in competition with the industry. This will also assist in the establishment of customer loyalty. Hence our prices shall be as follows:

Product 100ml 200mlThrust 15 20Zero 25 30

We intend our income structure to match our cost structure, so as to ensure that the salaries we pay to assure good workmanship is balanced by the price we charge. We will make sure that we charge for the product, workmanship and delivery with our aim being to achieve a gross profit margin of at least 30% in our initial years of operation. All in all we intend our prices to be extremely competitive on the market.

Promotion Strategy

Our promotion strategy will be based primarily on informing potential customers of our existence and making the right information available to our target customer. Since we shall be targeting different segments, the promotional tools and messages may vary slightly to match the intended market. However in all cases the marketing will convey the sense of quality, refreshness and hygienic in every picture, every promotion and every publication. Promotional campaigns will seek to promote the 'sharing aspect' of the tea, customers drinking these products in groups.

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Our promotional activities shall be focused towards driving the organization's overall strategy relentlessly, developing internal consistency and prepare it to confront any radical changes that may arise. In such a market we cannot afford to appear in, or produce, second-rate material that make our products look less than they are. We intend to leverage our presence using quality brochures and other sales literature, including promotional material such as pens, complimentary slips and stickers. Due to the fact that our products are in the introductory phase on the market, promotional expenses are high in order to generate customer attention and knowledge of our products existence.

We intend to spread the word about our business through the following:

Advertising

In view of the fact that we are entering a market largely dominated by Nescafe Limited. We intend to undertake extensive advertising of our products in addition to our brand name--company name. This is so as to instill awareness and knowledge of our existence in the market place, which hopefully shall convert into market share. Hence the need to ensure that our products are constantly available to our target market, and of consistent high quality. Whilst we are committed to providing products of uncompromising quality to meet the needs and expectations, the company believes its products should be advertised and promoted in an honest and ethical manner that respects the values of our consumers' societies. Examples A constant look out will also be made of any special editions in the local newspapers, which may provide an opportunity to advertise.

Events

These are increasingly becoming important as more firms establish in the country and hence the need to be known. The organization aims to participate in trade shows and quality taste tests. Not only will these increase awareness of the products, but if a particular product were to gain recognition, for example through being chosen #1 at a taste test, the organization will be able to take advantage of this in all its promotional campaigns, adding leverage to its reputation and image. Undoubtedly this would add confidence and pride in our staff complement as their hard work would be recognized often at the highest levels. Communicating such achievements often gives customers a feeling that they can rely on the product, and this builds strong customer loyalty.

Public Relations

Recognizing that we are relatively new on the market there will be a need to organize an event, of grandeur nature, introducing ourselves onto the market. At this we intend to invite potential customers, senior officials, including the Minister of Industry and Commerce, and other stakeholders so as to penetrate the market. With this we also intend to place news stories and features in magazines and newspapers to keep stakeholders updated on the latest developments and to increase awareness. We also plan to have a major festival like Navratri, Diwali etc with appropriately named, that maintains and promotes Gujarati culture. This will assist in the recognition and appreciation of our company in the surrounding community especially. Our efforts on community service will show that the company has its community at heart, contributing towards the establishment of a good and reputable image. Homes for the under privileged will be also be built in the medium, to long term as we plough back into the society we operate in. In addition we intend to pursue educational sponsorship for the less advantaged

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but promising young individuals in the community. This will constitute some of our corporate social responsibility details of which are provided in the respective section.

We also intend to experiment with a road show in the various neglected remote areas giving out caps, bags, and other such prizes to individuals who answer questions correctly. This will also enable our business name and products to be better known by the respective communities. However we are extremely confident that these road shows if well planned will be a success as they encourage community participation. Ready to drink tea tours shall also be arranged with interested stakeholders including school children and college students. This is so as to increase awareness of our facilities and products and also showing confidence in our production process and standards. Hopefully visitors will leave impressed and confident in our products, adding to the possibility of positive referrals. These same tours will also be arranged with prospective clients/order-takers.

Still in the infancy idea stage we have in mind the hosting of a 'fest' whereby guzzlers of our tea as well as first-timers are encouraged to drink as much as possible whilst enjoying themselves. This is likely to be held in the coldest month of the year (December) when people are often extremely thirsty to drink tea. Hence the name 'December fest' might be appropriate. Proceeds of such festivities are to be donated to charities.

Personal Selling

This shall be undertaken in the form of sales calls whereby a sales person will go out to potential customers and distributors informing them what products we are able to offer them. In addition the sales person will listen to client's needs at close hand, so as to ensure that the product is delivered timely and that it is the right product as demanded by the surrounding community. Close analysis shall also be undertaken of the consumption patterns of the respective communities, that is whether they prefer larger or smaller containers. This will ensure that our products are customized as much as possible to the surrounding community's needs and wants. In cases where there is the opportunity of obtaining a large order it may be necessary for the top management to go out personally, especially considering the fact that we are still a relatively new firm in the market.

Direct Marketing

This will be used, but only to a limited extent, in the form of telemarketing and informing potential customers (event organizers) and obtaining referrals where possible. In the case of telemarketing it will involve our targeting potential customers/distributors of our products and informing them of our existence and the products we offer. We may then arrange for an appointment with the respective decision-maker/order-maker, with the intention being to lure them into ordering one or more of our product .

.Distribution Strategy

We believe that through our obsession for improvement, and commitment to a leadership position in our respective markets, we can overcome the traditionally binding constraints of resource base, firm size and narrow conceptualization of our business domain. This shall be undertaken through coordination and logical integration of our distribution operations. We aim to reduce cycle time for key processes, eliminate rework and waste, and optimize our human resources utilization. To attain low lead-times we intend to We intend to ensure that our tea are

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located close to our major distribution centers not only to minimize costs but also to enable our products to be easily available, in the best condition, in the different markets . so we have design a distribution channel in wedges shape

In terms of actual delivery for every vehicle the daily fuel used, kilometers driven, repairs and maintenance costs must be recorded and compared with the set standard.

Sales Strategy

We intend to focus on improving our implementation, by working on key objectives and better coordination of marketing efforts. For the short term at least, the selling process will depend on personal selling and advertising to lure and inform potential clients about the products we offer and the benefits of consuming our products. Our marketing does not intend to affect the perception of need as much as knowledge and awareness of the product categories.

Sales Forecast

The sales forecast monthly summary is included below. The annual sales projections are included later in the plan. It should be noted that as we become established and known on the market we project sales to increase at a faster rate than the initial year.

Sales Forecast

Sales 2009 2010 2011

19

Thrust Rs 1,92,00,000 Rs 2,50,00,000 Rs 3,20,00,000

Zero Rs 1,20,00,000 Rs 1,50,00,000 Rs 1,90,00,000

Total Sales Rs 3,12,00,000 Rs 4,00 ,00,000 Rs5,10,00,000

Marketing vehicle

We are using print marketing vehicle for delivering our, massage to target market we are using different type of media which are as follows

Billboards: we will use billboards near airports, bus stops, in cities area

20

Banners: we use banners at railway stations, big events which are organized in cities

Ads in monthly magazine: in business magazine like (business today) we will give ads

Catalogs: we will prints catalogs which are given in airlines and traveler buses etc

Sales people’s calculation

We have divided our client in two classes

Class A: It contains Airlines companies, hotels and lodges MNCs companiesClass B: It contains railways platforms stall, bus stands shops, events managers, tours and travels

In Class A we have Airlines:6 domestic and 4 internationals airline in 3 domestic airports and 1 in international ,

24 calls have to do Hotels: 10 hotels in three cities so 30 calls we have to do Lodges:7 lodges in three cities so 21 call we have to do

In Class B we have Railways platform stalls: total platform in Ahmedabad, Baroda &surat is 24 and 4 stalls in

each platform so total call will be 96 Bus stand shop: 6 big bus stations are present and 10 shops in each bus stops so total call will

be 60 Event management company: 12 company in three cities so we have 36 call to do Tour and travels : we have 15 company in three states so we have 45 call to do Business firm: we are taking 500 company as our client

Capacity of sale person to call in a year/ call frequency for each client Class A: 36 call x 60 minutes per clients = 36 hours/years Class B: 12 call x 30 minutes per clients = 6 hours/year

Workload necessary to cover the entire market Class A: 75 call x 36 hours /year = 2700 hours Class B: 737 call x 6 hours/year = 4422 hours

21

Advertising Media periods

Billboards For six month only

Banners Through the year

Ads in monthly magazine Every month

Catalogs Three times in a months

Total = 7122 hours

Total work time available per sales person in a year

If we assume 40 working hours per week and we have total 45 working week in a year the total hours available for year is (40 hours/week x 45 week per year)= 1800 hours

Divide the total work time available by different activities per salesperson

Selling activates 40% = 720 hoursNon-selling activates 30% = 540 hoursTravelling 30% = 540 hoursTotal 100% = 1800 hours

Total number of sales people needed

7122 = 10 approx sales peoples needed 720

Job structure of sales forces

Salespeople’s payment structure

Salary = Basic + D.A+ T.A + Incentive

Basic = Rs4000 Travelling allows= on km traveled, it is decided Dear allows = Depend on inflation

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Sales Manager

Sale area manager Ahmedabad (1)

Sales area manager Baroda

Sales area manager Surat (1)

Salespeople (4) Salespeople (3) (43)

Salespeople (4)

Incentive = Depend on successful call achieves

Training of salespeople

Didactic Method

• One-on-one Instruction or Direct teaching approach.• Applicable to skilled based training programs• Lecture is delivered to number of people to cover a specific topic only• The trainer should be both an expert in managing the audience and an authority on the

subject.• The trainer should understand the level of knowledge of trainees.• Content of the training program.

Visual Support• Slide presentation• Transparencies• Flip charts

Participative Method

• Learning by doing• Helps in cross-fertilization of ideas, beliefs, attitudes, knowledge and experience.

1) Conferences • Highly structured device• Used for motivating sales people• Chairman is a key figure• Speakers are invite

2) Seminars • A seminar is a conference on a smaller scale which incorporates a greater degree of

participation from the members.• Speakers are acknowledged specialist who make brief presentation.• Seminar is divided in to small syndicate groups

Syndicate group contains 4 to 6 people.

3) Discussions • Use for issues related to sales to get views of different sales group

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• Qualities needed in a discussion leader– Skilled in planning– Careful preparation– Encouraging the involvement of individuals– Controlling the debate– Summarizing the result of the meeting– Ensuring suitable action

Motivational tool for motivation

Companies need to design different kinds of motivational programmes like bonus contests and enhanced commissions for the sales staff. These programmes are used to motivate the sales people to arrive at a higher goal and achieve the targets desired by the company. The motivational programmes are also undertaken to counter the offensive marketing moves by the competitor, seasonal fluctuations in demand, and to push a mature product in the industry, so that new products can be introduced. Motivational programmes are also undertaken to provide additional support to new products added to the current portfolio of the firms. Coupons, conferences, contests, and bonuses are the most popular motivational tools in Indian Organisations.

Two types of motivational factors:

Financial: Incentives, rewards, bonus, discount coupons. Non financial: It gives prestige, status and high standard of living.

P roduction A nd O peration P lan

Production Programme

Annual Installed Capacity : 3600000 units per year Utilization of capacity : 76% only Number of shifts per day : 2 (8 hours each shift) Size of batch : 5000 unit (Thrust)

: 2600 unit (Zero)

24

Stepwise conversion process from raw material to finishes

Milk (liquid) Tea leaf Sugar

Milk (concentration) Tea powder

Milk powder

Milk + tea + sugar

25

Total CostCurve

Milk + tea+ sugar in cans cans

Water addition

Sealing of inner cans

Addition of chemical (outer can)

Sealing of chemical

Catalysis addition

Final packaging

Stores

Power consumption

26

Fuel consumption

Section Daily use Yearly useDiesel 10 liter 3150liter

Plant layout

Utilities and overheads cost

sr.no particulars monthly yearly1 electricity 8000 960002 fuel 8750 1050003 water 3000 360004 transportation 5600 67200

total 25350 304200

27

Office

Tea Greinder

Milk silo Cyclone evaporator

Can washer Water storage Sealing M/c

Gate office

Storage

Dispenser Chemical dispenser

Packaging m/c

Conveyor belt

Road

Administrative Expenses

monthly yearlystationary / printing 4000 48000postage 3000 36000telephone 6000 72000legal charges 8000 96000travelling 13000 156000miscellaneous 10000 120000total 44000 528000

Break even Analysis

variable cost monthly 1000 units per day utilization

Raw material 87500cans 95000 power 3200fuel 8750wages 3200packaging 18750transportation 5600chemical 40000

28

fixed cost monthly yearlyRepair/ maintances

12000 144000

Rent office 12000 144000deposit - 20000Insurance -Salary 400000 4800000Administrative 44000 528000Interest - 1500000Depreciation - 1145000total 8281000

total 262000

Cost price of one unit =fixed cost yearly + {(variable cost one unit) x quantity of day} 315

Total Quantity of Day

Cost of one unit= 26628+(10.49 x 7600) = Rs 13.9 7600

Breakeven point = Fixed cost yearly (S.P – V.C) x Q of a day (thrust) + S.P – V.C) x Q of a day (zero) Breakeven point = 8182000 =134 days (20-13.9) x 5000 + (25-15.2) x 2600

Breakeven point show how many days required

29

Break even graph show how many unit required

M anagement P lan

30

Manpower Requirement

Sr.no Particular Numbers Salary per monthly per employee

Monthly Total salary Rs.

(A)1.2.3.4.5.6.

Factory StaffProduction ManagerSupervisorSkilled WorkerSemi skilled WorkerUnskilled WorkerChowkidar

1210864

Rs 30,000Rs 15,000Rs 4,500Rs 2,500Rs 3,500Rs 1,500

Rs30000Rs30000Rs45000Rs20000Rs21000Rs6000

(B)7.8.9.

Office StaffClark TypistAccountantPeon

624

Rs 3,000Rs 8,000Rs 2,000

Rs21000Rs16000Rs10000

(C) 10.11.

Sales StaffSales ManagerField staff

212

Rs 30,000Rs 5,000

Rs90000Rs60000

Sub total ADD: Benefits @30%

349000+104700

Total Rs453700

Structure of Management

31

Managing Director

Finances Manager Production Manager

F inance P lan

Profit and loss account

32

Marketing/sales Manger

Supervisor Supervisor Supervisor

Sales people

Sales people

Sales people

Accountant

Supervisor Supervisor

Workers Workers

Projection For ending years

Sr.no particulars monthly year 2009

year 2010

year 2011

A Cost of Production1 Raw Material(tea &milk) 87500 1050000 95000 1140000 120000 1440000

Dextrose’s 10000 120000 12000 144000 16000 192000

sugar 20000 240000 24000 288000 28000 336000

cans 5250 63000 9800 117600 12000 144000

2 Utilities (chemical) 40000 480000 50000 600000 65000 780000

electricity 8000 300000 12000 300000 14000 300000

fuel 8750 105000 12000 144000 15000 180000

water 3000 36000 3500 42000 4000 48000

transportation 5600 67200 7600 91200 8800 105600

3 Consumables, Stores & spares

9000 108000 14000 168000 18000 216000

4 Repair & Maintenance 12000 144000 17000 204000 21000 252000

5 Rents 12000 144000 15000 180000 17000 204000

Insurance 100000 1200000 100000 1200000 100000 1200000

6 Salaries 400000 4800000 550000 6600000 630000 7560000

7 Administration Expenses’

598350 7180200 690000 8280000 750000 9000000

8 selling & Distribution 20,000 240000 35,000 420000 40,000 480000transportation 5600 67200 8000 96000 11000 132000

9 Packaging Expenses 14062.5 168750 18000 216000 21000 252000

10 Miscellaneous Expanses 6000 72000 10000 120000 12000 144000

11 Interest on loan 1500000 1500000 1500000

12 Depreciation

building 800000 720000 648000

machinery 150000 52500 44625

tools/ furniture 120000 84000 58800computer 75000 56250 42100

14 advertising 1000000 1800000 2100000Total Production Cost 20230350 24563550 27359125

Sr.no Particulars

B Income1 Total sales income

Thrust 1600000 19200000 25000000 32000000Zero 1000000 12000000 15000000 19000000

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2 scrap 1000 12000 15000 18000Total Annual Income 31212000 40015000 51018000

C Gross Profit (B-A) 10981650 15451450 23658875D Income Tax (38243578) (5408008) (9463550)E Net Profit 7138073 10043443 14195325

years 2009 2010 2011

Cash flow statements

Projections For the year ended on 31 march

Year 2009 2010 2011A Cash flow From

34

Operating ActivitiesNet profit Before tax 10981650 15451450 23658875

Depreciation -1145000 -912750 -793525Interest -1500000 -1500000 -1500000Total 8336650 13038700 21365350Inventories 500000 1885400 2144000creditor 368250 422400 528000Total 868250 2307800 2672000

tax paid -3843578 -5408008 -9463550Net operating cash activities

5361322 9938492 14573800

B Cash flow from investing Activities

Purchase of Fixed Asset

28550000 17405000 16492250

Interest nil nil nilNet investing cash activities

28550000 17405000 16492250

C Cash flow from financing ActivitiesProceedslong term Borrowing -9000000 -9000000 -9000000Paymentlong term Borrowing nil nil nilNet financial cash activates

-9000000 -9000000 -9000000

Cash flow summaryNet Cash from operating Activities

5361322 9938492 14573800

Net Cash from investing Activities

28550000 17405000 16492250

Net Cash from Financing Activities

-9000000 -9000000 -9000000

Net cash 24911322 18343492 22066050opening Balance nil 24911322 43254814Cash and cash equivalent

24911322 43254814 65320864

Balance sheetProjections

years 2009 2010 2011Liabilitie

s1 Capital 30000000 30000000 30000000

35

net profit 7138073 10043443 14195325Total 37138073 40043443 44195325

2 Current liabilities(3 months credit periods)Raw Material(tea &milk)

87500 95000 120000

Dextrose’s 10000 12000 16000Sugar 20000 24000 28000Cans 5250 9800 12000Total 122750 368250 140800 422400 176000 528000

3 Provident fund 3853629 7707258 115608874 Secured Loan 9000000 9000000 90000005 Reserve Funds 2456370 860420 4728467

Total 52816322 68076964 84208004Assets

6 Fixed assetsplant & machinery 28550000 17405000 16492250(depreciation) -1145000 -912750 -793610Total 27405000 16492250 15698640

7 Patents and trademark

nil 444500 444500

8 Investment nil 6000000 6000009 Inventories 500000 1885400 214400010 Cash and Cash

equivalent24911322 43254814 65320864

Total 52816322 68076964 84208004

S ummary of B usiness R atios

Ratio Analysis

Ratios 2009 2010 2011

36

Sales Growth 0.00 28% 29.12%

Percent of Total AssetsInventory 10.48% 10.76% 10.52%Other Current Assets 0.00% 0.00% 0.00%Total Current Assets 37.16% 42.15% 50.22%Long-term Assets 62.84% 57.85% 49.78%Total Assets 100.00% 100.00% 100.00%

Current Liabilities 14.16% 7.33% 7.14%Long-term Liabilities 0.00% 0.00% 0.00%Total Liabilities 14.16% 7.33% 7.14%Net Worth 85.84% 92.67% 92.86%

Percent of SalesSales 100.00% 100.00% 100.00%Gross Margin 44.00% 44.00% 44.00%Selling, General & Administrative Expenses

36.30% 34.19% 34.36%

Advertising Expenses 1.64% 1.56% 1.46%Profit Before Interest and Taxes

10.41% 13.15% 12.86%

Main RatiosLiquidity RatiosCurrent 2.62 5.75 7.03Quick 1.88 4.28 5.56Pre-tax Return on Net Worth

14.90% 18.05% 17.31%

Pre-tax Return on Assets 12.79% 16.73% 16.07%

Additional Ratios 2009 2010 2012Net Profit Margin 7.75% 9.81% 9.59%

Activity RatiosInventory Turnover 10.91 6.97 7.03Accounts Payable Turnover

7.67 12.17 12.17

Total Asset Turnover 1.25 1.28 1.25Net Working Capital 25043072 34267810 41087632

Additional RatiosAssets to Sales 0.80 0.78 0.80Acid Test 0.22 0.98 2.24Sales/Net Worth 1.45 1.38 1.35

Ratio 2009 2010 2011ROI 23.79% 33.47% 47.31%ROC 21.9 32.5% 40.8%

PRELIMINARY & PRE-OPERATIVE EXPENSES

37

Sr. No Particular Rupees1 Legal Expenses, Scrutiny Fees 5,0002 Project Report Preparation 10003 Establishment Expenses 10004 Electrification & Water Deposits 8,0005 Inauguration Expenses & Other Expenses 12,0006 Telephone Deposit 3,000

Total 30,000

MEANS OF FINANCEThe cost of the project as stated above is suggested to be met through the sources:

COST OF THE PROJECTThe cost of the project has been estimated at total Rs.3, 00, 00,000

F uture D evelopment

Company main goal is “To be a premium global conglomerate in ready to drink productswith a clear focus on business” and it can be archive by:

Integrity

38

Sr. No Particular Rupees1 Self financing 50,00,0002 Promoters 1,60,00,0003 Institutions loan 90,00,000

Total Rs 3,00,00,000

Sr. No Particular Rupees1 Office Rent (deposit) 1,44,0002 Plant & machinery 2,85,50,0003 Other Fixed Asset 2,6404 Preliminary & pre-operative Expenses 15,3005 30% of insurance, tax, fright, installations etc. 60,000

Total Rs 2,87,71,940

Commitment

Passion

Seamlessness

Speed

Milestones plan to met in coming year is to expand our business throughout India and Also start exporting our product outside India. Our value proposition is offering our customers refreshness and enjoyment at reasonable prices ensuring peace of both body and mind. Hence we intend to:

1. Market the benefit, not the product.

2. Ensure customer satisfaction.

3. Develop long relationships.

4. Market the company.

Through all this make company brand image as a refreshing and enhancing status of person. And should have largest ready to drink product distribution channel throughout India company. We can achive our goal by following things

1. We intend to watch our results very carefully. We may need to drop production of certain products if we cannot get the margin up or material becomes difficult to obtain. We might be able to avoid the straight competition with the major companies by focusing more on the previously mentioned products.

2. Another possibility is the introduction of a new company(s) in our niche. Hence the need to undertake aggressive marketing and networking.

3. An established tea brew manufacturer may begin targeting to our target market niche. Hence the need for commitment in our work and striving of total quality in our organization.

4. Though India overall is rather secure on the labor front in terms of strikes we intend to have in place a mechanism that will ensure that were this to occur the negative effects would be minimized. However further research and analysis into the above is still being undertaken

Few control we have cheack time to time because .The local tea brewing market has been growing steadily over the last few years due to increases in people's disposable income and opening of the economy. With this in mind we intend our marketing programs to expand accordingly. The introduction of quality catalogues and sales literature will enable A.D Breweries Pvt LTD to market to potential customers. We project sales to increase accordingly, though slightly slower as we establish a reputation for ourselves. With time, a presence on the Internet and participation in regional trade shows will be

39

key milestones to expanding sales and marketing potentials through the utilization of new channels and identification of potential customers.

Throughout the year we intend to undertake regular evaluations of our marketing programs so as to ensure that we are in-line with our intended objectives.

In summary we intend to undertake the following:

1. Tracking and follow-up: We intend to have the discipline, as an organization, to track results of the business plan and make sure that we implement.

2. Market segment focus: We intend to have the discipline to maintain the market segment focus.

Saying no: Though difficult initially, we intend to be able to say no to special deals that take us away from the target focus and are unprofitable .

All potential risk can be reduce by doing proper market research time to time so that a proper action can be taken to avoid and plan a good strategy to sustain in market for longer period with a good amount of profit.

B ibliography

Reference book “Marketing Research: An Applied Orientation “By Malhotra K. Naresh, /Edition:

fourth/Publication: Pearson Education

“Marketing Management “By Philip Kotler/Edition: 12th /Publication: Pearson Education

40

“Financial Management “By I M Pandey/Ninth Edition/vikas publishing house Pvt LTD

“Entrepreneurships “By Robert. D. Hisrich, Michael. P. Peters, Dean. A. Shepherd/sixth Edition/ Tata McGraw HILL

“Crafting And Executing Strategy” By Arthur.A.ThompsonJr, A.J. Strickland III,Arun.K.Jain/14th Edition/ Tata McGraw HILL

“Sales Force Design For Strategic Advantage “By Andris.A.Zooltners,Prabhakant Shina,&Sally.E.Lorimer/Palgrave macmillan

Websites

www.bnet/ fissibilitébusiness /reprots%.com

www.indianteaindustry.com

www.consumerbuying/Tea reports%.com

www. Marketingrescercher/Gujarat tea/reports% /.com

www.indiancensus.com

www.itreturn/Govtindia/com

Newspaper(1) Times Of India 2nd may 2008(2) Economics Times 7th may 2008(3) Business Standard 11th may 2008

A nnexure

COST OF PLANT & MACHINERY

Sr No Particular of Machineries Numbers Cost per machine

Total value

Milk silo (4000l) 1 1,00,000 1,00,000Cyclone evaporator (450l/hr) 1 25,00,000 25,00,000

41

Dispenser(100gm /sec) 3 4,00,000 1,20,000Conveyors 1 8,00,000 8,00,000Can washer(300 cans per hr) 1 30,000 30,000Sealing machine 2 80,000 1,60,000Tool, jigs, fixture etc Thermometer with RH meter 3 200 600Spectrometer 2 3000 6000Venire caliper (electronic) 2 1200 2400Gauge meter 2 450 1800microscopes 3 1800 5400Total + 30% taxes ,insurance, etc

Rs 4703660

DEPRECIATION CALCULATION

Depreciation actual cost depreciation year 1

depreciation year 2

depreciation year 3

building/plant 27000000 800000 720000 648000machinery 500000 150000 52500 44625tools/ furniture 200000 120000 84000 58800computer 300000 75000 56250 42100total 28000000 1145000 912750 793525

INTEREST CALCULATION

Particulars Percentage YearlyInterest on term loan @18% 1500000Interest on Working Capital loan

@18% nil

Interest on other Deposits, if Any

As applicable nil

Total 1500000

Inflation trend to forecast expected sales and future prices of Raw materials and utilities

42

43