fruity bread

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Table of contentsDescription of the business Survey Report of bread consumers Brief company history Mission Statement Target market Market size Design of product Quality level of product Competitors Style of product

Pricing strategies Per unit cost Total cost Forecasting sale Customers feed back Promotional modes Cost of promotional modes Available budget Expected target market Distributional channels Producers to distributors modes

Description of the businessHow the proposed business solves the problem or fills the needThe problem and issue that is to solve is to be is to vanish the old taste of the bread. So in order to full fill this need we initially have small surveys of different bakers to collect the consumer view about this. Survey Report of bread consumers Views Questions Positive Are you agreeing with same old taste? Do you need new taste? Is your bread nutritious? Is your bread fatless? Does it provide the same taste once it opens? Negative

36%85% 45% 35% 23%

64%15% 55% 65% 77%

So to solve all these issues we develop an idea of introducing multi flavor bread for the convenient of consumers The size of our opportunity is huge and the demand for it is excessive and it is growing day by day. The change in peoples taste is the trend which supports our idea.

Brief company historyFruity bread was incorporated by five persons M. nadir bhatti, Aqib manzoor, huma malik, tahira yasmeen and shoaib murtaza. This idea was generated in the month of January 2011. The formation of the business firm is partnership. The idea of multi flavor bread was introduce for the first time in the market by us. Initially we were five but later on two more members become the part of our firm.

Mission Statement

Fruity bread mission statement is to provide a product of the greatest possible value to our customers, thereby gaining and holding their respect and loyalty while achieving sufficient profit to finance our business and it's growth

ObjectivesThe objectives for fruity bread are:

To establish the market presence needed to support marketing and sales goals and to attract customers. To reach Rs.30,000 monthly sales by the end of 2010, Rs.33,000 average monthly sales by the end of FY 2011. To achieve profit margins over 10%. To develop top-rated relationships with 2-4 well-respected, all encompassing distributors. Prove to be a best idea generating and consultancy firm Terminate the old tastes and set up new tangs

Keys to SuccessThe keys to success in this business are:

Marketing: promoting a new company, product, and delivery channels to a rural community. Product quality and consistency. Pricing effectively with respect to the project quality and customer value proposition. Management: products availability, costs controlled, marketing budgets managed. There is a temptation to fixate on growth at the expense of profits. Reporting and controls in place for inventory and financials.

Competitive advantageCompetitive advantage is a position a firm occupies against its competitors. Our company has a great competitive advantage with respect to our competitors. The reason is that the product of company as a huge desire in the market. Although many breads are available in the market but with same old taste but we are with the different one with new taste and quality Some of the potential competitive advantages to be considered are:

Strong Competitive AdvantagesThe strongest competitive advantage which we have is our patents, trademarks and copyrights etc. The things which fruity bread possess is legal and registered with government nothing is illegal. We have complete record of our agreements with our customers and suppliers. Not even this but long term contracts are preplanned with our customers and suppliers

Credible Competitive AdvantagesIt include our product and management competitive advantage

CostFruity bread always tries to produce low cost product with the good quality because quality is our ingredient

PriceFruity bread have great control over the price as we are the first one in the market to produce multi flavor bread so we are the price setter and we have complete control on price and our prices are nominal

ChannelsFruity bread has a huge list of distribution channels through out the country who willing to do work with us.

World Class ManagementFruity bread has a world class management team which is working together as a single unit. We are just like family and we believe that professional management puts the company on the way to success.

Sustainable Competitive Advantage Fruity Bread Resources Our Capital structuring is based on 70% equity and 30% debts We have huge availability of raw material and good working capital Management is the blood of our firm and we have qualified and skilled management Intangible assets are patents trademarks and copyrights Qualified and experienced board of directors Highly skilled board of advisory

Fruity Bread Capabilities Well developed, high-quality, accessible contacts that take years to build Science and technology experts Supply chain experts Product/service design experts Sales & distribution channels Great sales and marketing

Business ModelDemand ForecastThis is done by considering demands of customers. Our target customers relates to: Elite class Upper Middle class Lower middle class

Raw MaterialWe buy milk from farmers located at different parts of the city and eggs from poultry farm located near Raiwind Lahore. We buy raw material from wholesalers as well.

ProductionOur production is done at Fruity bread own state of the art production plant.

Distribution channel Wholesalers Retailers Hyper Star Metro etc

Sales to customersSelling products to the customers through retailers, wholesalers and collecting feedback from customers.

Description of Business ModelBusiness model of fruity bread is traditional. We first of all analyze the demand in the market. Through a survey we came to know that there is a gap between the old and multi flavored bread. Then we collect materials, as raw material will be purchase some of it from whole sale markets in Lahore at very nominal prices with fine quality and from farmers and poultry farm owners. After that we go to the next step which is production process. The production of fruity bread is done at its own state of the art production plant. The next step is to distribute our product to the customer. Initially we are selling our product through wholesalers and retailers. So, through these distribution channels we sell our products and our marketing team and salesmen will get the customer feedback which is used for the next demand forecast.

Current Status and requirementsOur start-up costs come to approximately 100,000, which is mostly renovation of the occupied office space, professional fees, and expenses associated with starting our first head office. The start-up costs are to be financed by direct owner investment, financial institutions, and private investors. The assumptions are shown in the following table and illustration.

Start-up Expenses

Amount (Rs)

Professional Fees (Legal, Accounting, Consulting) 1,800 Placemats, Stationery, Business Cards Renovation Marketing Rent Expensed Equipment 1,100 8,300 2,500 2,000 5,000

Insurance Website Development Misc Expense Total Start-up Expenses

350 1,000 3,800 25,850

Product Life Cycle

Fruity Bread

The future prosperity of our business depends upon the following important aspects: Our passion, desire and interest will play a key role in moving towards success Management expertise and commitment to the business Sound strategies Close eye on the future competitors Good name recognition Increased quality and excellence of the services

We will give due care to these factors as they can be of vital importance for our future survival.

Start-up Assets

Amount (Rs)

Cash Required Other Current Assets Long-term Assets Total Assets

23,100 5,250 20,300 54,650

Start-up Funding

Amount (Rs)

Start-up Expenses to Fund Start-up Assets to Fund Total Funding Required

25,850 54,650 80,500


Amount (Rs)

Non-cash Assets from Start-up Cash Requirements from Start-up Additional Cash Raised

31,550 23,100 0

Cash Balance on Starting Date Total Assets

23,100 54,650

Liabilities and Capital

Liabilities Current Borrowing Long-term Liabilities Accounts Payable (Outstanding Bills) Other Current Liabilities (interest-free) Total Liabilities

Amount (Rs) 0 25,000 9,500 0 34,500


Amount (Rs)

Planned Investment Investors Owners Additional Investment Requirement Total Planned Investment 15,000 30,000 1,000 46,000

Loss at Start-up (Start-up Expenses) Total Capital

(Rs 25,850) (Rs 20,150)

Intellectual PropertyFRUITY BREADName is registered

Logo is registeredPatentsFruity bread has registered its process and product under the patents ordinance 2000 and follows all the patent rules 2003 so according to this no other firm is allowed to follow the same process and products used by Fruity bread.

TrademarksThe logo, name and slogan of fruity bread are registered as a trademark.

Copy RightsFruity bread has registered under the copyright act 1962.

Industry AnalysisIndustry analysis is a business research that focuses on the potential of an industry.

Industry TrendsRight now all of the bread industry is producing the similar type of bread with same flavor and no new innovation has taken place in the bread industry for the long time. There are only three types of bread avail