Professional Documents
Culture Documents
Mr. Fruity
Group Members
M. Waqas Afzal (5263-FMS/MBA/F11)
M. Mujtaba Hussain Malik (5270-FMS/MBA/F11)
Sabih Ahmed (5245-FMS/MBA/F11)
Table of Contents
1. Executive Summary.....3
2. Business Description...5
3. Marketing plan..9
4. Management....14
5. Operations...16
6. Financial..19
7. Critical Risks....22
8. Harvest Strategy....26
9. Milestone Schedule .....28
10. Bibliography31
Mujtaba
SECTION 01
Executive Summary
Mr. Fruity
Quality is our Royalty
Executive Summary
The Finest Fruits company intends to start its operations in June 2013 Islamabad and
will mainly focus on providing fresh and dry fruits to improve the health of every
Pakistani. The company is at the start-up stage of business. Due to the busy life style
we intend to put much effort on the quality, hygiene, processing, packaging, labeling,
and excellent unique delivery of our products to our customers so that everyone
appreciates the value of fresh fruits and our services. The Finest Fruits will be selling its
products in Islamabad and some sectors of Rawalpindi and then becoming popular in all
Cities of Pakistan.
The company will get supply of fruits from different cities of Pakistan, but also the
company will be purchasing these fruits directly from farmers in various parts of the
country with different growing seasons, that may help the company to be assured of
the continuous supply of the fresh fruits throughout the year.
Basically the target customers are household people and events celebrators living in
Islamabad and Rawalpindi both cities are developed and people are living here
economically strong and educated, so to invest in the above mentioned cities of
Pakistan we expect a good return from our business.
As for the board of directors are very necessary for every company, here we
will appreciate our investors who would also contribute us in the management of the
business, so All key personnels, investors, managers, some fruits experts and some
consultant will be the part of our board of directors.
This Business is highly profitable business, it needs Rs: 33, 00,000, which will be
return in nine months of first sale start. We allocate specific budget to each milestone
th
of this plan. The payback period would come in 10 month and after that the net profit
ratio will increase dramatically.
Thanks
Mr. Fruity Team
Mujtaba
SECTION 02
Business Description
Mr. Fruity
Quality is our Royalty
Mujtaba
Business Description
The business idea (selling fresh and dry fruits) originated from a deep discussion of
friends Sabih, Waqas and Mujtaba Malik. In which we have analyzed that there
are supermarkets, weekend bazaars and some fruit shops doing the same business.
We thought about improving the business that if we provide a home delivery service and
well fresh cut and packed fruits in a very hygienic environment, the business can even
double the profits because of every ones cry for a healthy life. Fruits play a very
important role in keeping the human body fresh and healthy and can prolong the
human life, because Fresh fruits give us many beneficial substances such as vitamins,
energy and other requirements for our human body.
It acts as a catalyst in safeguarding the human system from various diseases, so fruits
are a necessity in the modern world for the human system.
Uniqueness of Product
The business is named Mr. Fruity that provides dry and fresh cut fruits that are well
packed and hygienic. Initially these fruits include apples, pears, peaches, apricots,
melon, water melon, strawberries, mangoes, almond, walnuts, dates and peanuts
and later depending on the customers needs. The home delivery and high quality and
hygienic processing environment will make the product to attract many customers and
create a
wider market share.
Packaging is very important to prevention of the product against external environment
it will also improve on the convenience and functionality of the product without
changing its taste and freshness. Our products will be packed in clean disposable
container of high quality material, wrapped in a low density polyethylene to seal the
top clearly to prevent it from the harm of any external environment. Immediately after
packaging the package will be put in a refrigerator under recommended temperatures by
the quality controller ready for supply.
The high quality and hygienic processing environment in which the company intends to
invest much will make the product attract many customers and create a wider market
share. In case fruits are remained from packaging we can produce some natural juice
from different fresh fruits which may help us avoiding loss of the business.
The company is intended to sell and provide home delivery services to universities,
offices, hotels and restaurants.
Goals
To provide unique and excellent product and delivery services to all
our customers.
To expand the business and serve all the homes, restaurants, hotels, universities
and offices of Islamabad and Rawalpindi.
To produce natural juice out of the different fresh fruits.
To link the company with any interested investors to expand the business
and export our products.
To improve quality control system from harvesting to available for sale.
Industry Analysis
The fresh fruit sub sector falls within the fruit and vegetable sector. This sector has
become important to t h e e c o n o m y o f P a k i s t a n .
According
to
the
525,000 metric tons, guavas 126,000 metric tons, apricots and other fruits 1.914
million tons, other fruits include bananas, grapes, pomegranates, pears and dates.
The growth rate in the food industry has been estimated at 10.00 per cent per annum.
The most rapidly growing items are fruit juices, dairy products, fish processed, bakery
items, sugar, biscuits and confectioneries, and other soft beverages. Rapid export growth
has characterized fish preparation, fruit preserves, dry fruits, some beverages and
sugar, and honey preparation. Food products (except rice) do not however, make up a
significant proportion of Pakistani exports and there is a considerable potential for
expanding such exports, especially to Europe and the Gulf region.
This analysis shows that there is huge potential for Mr. Fruity to step forward in fruit
business to make this industry effective in Pakistan so that other countries like to
build relationship with us for fruit business.
SECTION 03
Marketing
Mr. Fruity
Quality is our Royalty
Target Market
The major area of marketing is to know your customers, so Mr. Fruity is aware about
its target customers and market. Basically the target customers for this business are
the household people and events celebrators. The household who like fruit for their
daily use, for their children etc., and those celebrate different events like Eid, Ramadan,
Marriage ceremony, Birthdays, Business meetings or Conferences and some others.
Geographically, initially we will target the Islamabad and Rawalpindi, especially
most developed areas like E-11, F-6 to F-11, G-6 to G-11, I-8 to I-10, Bahria Town
Islamabad, Sattelite Town, Westridge and Chaklala Schemes Rawalpindi etc.
If
we talk about economic condition of our customers then we consider those who can
buy fruits 2 to 5 KG a week, or those who consume 2-5 KG in a week. And those
people who want to gift fruits in specific session can be included in our target market.
P
Waqas, Sabih and Mujtaba
Pr epared By:
Trends
Fruits Consumption is really high in Pakistan; approximately 40% to 50% of
total production is used in Pakistan and only 5%-10% exported. So we can say there is a
huge market of fruits and the business which discussed above is very poor, now
customers are very upset with it. Because due to high number of intermediates the
profit margin is too high and low quality also confused the customers. They are just
buying because they have no alternative.
Here this market needs a company like Mr. Fruity who provide quality fruits
in reasonable prices, at any time anywhere at home.
When the events came the consumption increased dramatically, with this situation the
prices also increased. Even some times the high prices do not change the demand as it
increased like Holy Ramadan. It is also opportunity for us.
Most of the people in Islamabad belong to different cities of Pakistan, some are far
and some are near. In Islamabad its a trend of people that in the session of any fruit
like in summer the mangos or in winter the oranges. Fruits are gifted by their
relatives in different cities. So the relatives buy fruits in their cities and send to
Islamabad. This process take time and efforts, here we will give service with name
Fruity Gift.
Competition
In any industry competition always create threats for new and old businesses. In
fruits industry there is no company who is selling fruits with a specific brand name like
us, and no company providing such services like home delivery, fruits gifts, etc. But if
we see critically the Pakistan market in fruits industry the competition is high among
fruits dealers, in whole Pakistan. But in Islamabad and Rawalpindi it little bit
dramatically. There is a big Fruits Market called Fruit Mandi for retailers, then many
Well Managed Weekly Bazar, those open three days in a week. People can buy
easily in low prices.
Then a number of fruits shops in each sector. They have basically captured the market
and can affect us.
11
Marketing Plan
Market
Distribution)
Strategy
(Sales
and
Sales and distribution is the core of any marketing plan of any business, because as
you make easy and access of customers you can increase sale. Mr. Fruity is also
focusing on these components. As our business has two main parts Outlet or
Shop and Home delivery, we will make both more effective as we can.
In Home delivery there will be a system and specific timing. We will have our
transportation system which can be access the whole market effectively. There will be
a central Store from we will start, it will be Tarnol Islamabad, which can easily
access the both Islamabad and Rawalpindi. We will do delivery on Cary Van which
will be safe and easy. Each van has a driver and a salesman/helper.
We`ll also have an Outlet/Shop most probably in F-6 sector Islamabad. It contains all
kinds of fruits which we are providing. There will be customized counters with defreeze
system and well furnished. People can buy from there easily.
Pricing
Its an important factor for any company to select per unit price which overcome its
cost and some profit margin. Very important thing is that consumers can easily afford
it. So
our pricing strategy will be according to market and customer
affordability.
Basically in start our pricing strategy will be skimming, to get some part of market share.
12
But it will be only for first six months. So after that we will make strategy to penetrate in
market. Cost plus profit margin will be our price, this cost include carrying cost, storage
cost, labor and transportation of delivery. The profit margin which we include after
eight months will be reasonable and less than other fruits dealer.
As our service is new for people and has many unique characteristics so it is possible
that our price can be higher then other fruits shops in market, but it will be not too
high. The reason of little highness is our uniqueness and extra services like, home
delivery, hygiene packing, quality, expiration etc.
13
SECTION 04
Management
Mr. Fruity
Quality is our Royalty
14
Management Team
Initially those who will start business with us will be the basically team members of
our company. Even they will not invest in business in form of money, but they will
spend time and efforts. Likewise Mr. Waqas, Sabih and Mr. Mujtaba Malik are
key personal of this business because they give the idea. Secondly if any one who
want to invest in this business and also be a part of our management can be a
partner of this business. So he/she will be the part of key personals. The maximum key
personals will be five.
The management structure of our business like American style, there will be a CEO
under him four managers of departments will work. Each manager will be the head of
his department. Under each manager at least one team will perform task according to
his department, like in Marketing and CRS department there will be a Manager and one
team will work for CRS and one team will work for marketing.
Legal Structure
We will try our best that managers will be experts in fruits and their protection; they
know the market behavior in fruits demand. No high education is required for our
business, but some experience of fruit markets and their supply and demand process.
Board of Directors
All key personals, all investors, all managers, some fruits experts and some consultant
will be the part of our board of directors. They will meet once in three months and
discuss and look for new demand, markets, new ways to protect fruits for a long time
etc. The main task of three months meeting to check company growth and profit ratio,
as well
as customer
control.
feedback
and
quality
The Wages and salaries will be according to labor law of Pakistan constitution. The
very special futures of our business that we will give some share in profit to managers.
It will motivate managers to do more hard work and increase sales.
15
SECTION 05
Operations
Mr. Fruity
Quality is our Royalty
16
Production
The company will rent a house in Tarnol Islamabad from where we can easily deliver
our services and products to all sectors of Islamabad and some sectors of Rawalpindi.
The production center will be divided into 3 main sections
Reception Section for raw materials (Weighting, Receiving of raw material, Quality
control)
Processing Section (Peeling and cutting, Sizing, Packaging and labeling, Quality
control)
Administration and supply section (Marketing office, Quality control office, Record
office, Director Office, A space for a big refrigerator for finished products ready for
supply)
Quality assurance
The company plans to invest much in the quality control system to meet the required
quality and standards as required by the customers and to solve this problem the
company will ensure that it is registered and certified to meet the required standards by
the law.
Customer service
Getting daily reports about the needs of the customers from sales representatives to
the marketing officer, director, and quality controller will help us much in quickly
reacting to our customers needs and provide an immediate solution.
Location
The main office and the warehouse will initially are located in Tarnol and Outlet will be
in F- 6 sector of Islamabad from where we can easily deliver our products and services to
all other sectors of Islamabad and some parts of Rawalpindi.
17
Suppliers
company
and
buyers
of
the
The company will have powerful suppliers from different cities of Pakistan having
good varieties of fresh fruits and dry fruits. But also the company will be purchasing
these fruits directly from farmers in various parts of the country with different
growing seasons. This will help the company to be assured of the continuous supply of
the fresh fruits throughout the year since different regions have different growing and
harvesting seasons due to variations in climate, so that we can make fruits available at
any time for our customers. Most of the buyers of our products will be in all the
categories of people both high and middle class. Since our product will be of high
quality but with affordable
prices, we expect a good number of buyers to boost our
business.
Taxation
Taxation would be having a noticeable impact on our business depending size of the
business. Initially we will be starting this business on small scale so it wont be affecting
us to much but as soon as the business will be expanded the tax impact on our business
will be more and more depending upon the government policies.
18
SECTION 06
Financial
Mr. Fruity
Quality is our Royalty
19
Financial Forecast
Very important portion of any business plan, which basically show financial strength
and future of business. If the business going well financially then it will be profitable
but if it will not than it is an integrator of check business in details.
This Business is highly profitable, in 10 month of our business startup our profit will
th
start, even in 8 month we will buy the warehouse which consumes a huge amount of
our cash flow. The Net Profit Ratio is increasing time by time.
Cash Flow
2013
2014
2015
2016
2017
2018
Inflows
Purchases
Expenses
1,407,348.63
25,848,226.98
376,141,207.86
5,473,574,970.64
79,650,998,968.84
240,736,752,676.98
3,333,000.00
8,992,000.00
12,066,000.00
15,090,000.00
18,114,000.00
10,191,000.00
3,611,800.38
3,491,568.31
3,695,253.60
3,843,352.45
4,007,551.44
2,060,095.57
Outflows
6,944,800.38
12,483,568.31
15,761,253.60
18,933,352.45
22,121,551.44
12,251,095.57
Net Profit
(5,537,451.74)
13,364,658.67
360,379,954.26
5,454,641,618.19
79,628,877,417.40
240,724,501,581.40
Cost Control
We will try to control our fixed expanses, it help us to control over all cost. That is
why our break even point is too short.
20
Budgeting Plan
Major Sources of Funds
Type
Owner (A+B+C)
Investor (Abroad, sleeping partner)
Relatives/Friends
Investments
Banks
Total Investment
Total Investment
1000000
1500000
800000
0
0
3300000
Milestone
Time
Budget
1-Jun-13
725000
15-Jun-13
500000
1-Jul-13
40000
4) Opening of Outlet
15-Jul-13
800000
1-Aug-13
580000
1-Dec-13
640000
3285000
21
SECTION 07
Critical Risks
Mr. Fruity
Quality is our Royalty
22
Political Insatiability
Pakistan is basically politically insatiable country, from last decade we are living in
a danger environment. So it is a big risk for our business because, if there will be any
instability the ultimate tension will create for customers as well as our suppliers. So
to solve these issues we will make a backup plan from supplier side. In customer side it
will be not a big issue because in Islamabad the political party cannot work for a long
time. So we will store fruits in storage factories. It will help us to fulfill demand of
customers.
Fruit Crisis
One of the big issue in Pakistan is crisis of different recourses, these issue because
increase in exports or smuggling of recourses. So in future it may be an issue of
fruits crisis in local market due to export to international market. So for this purpose
we will contract to direct farmer in different agriculture areas.
Transportation
Actually in Pakistan some time transporter work as agent to deliver goods to other
place, especially from Karachi to other cities. During this whene ver any strike or late
in delivery, stop the transport at any city. So in major cities the demand of transport
dramatically increased which becomes a cause of high price of delivery of goods. So
with this issue first we will make a backup plan by storing specific amount of fruits.
But in ling term we will make our own transportation system. By hiring or by buying
our own
transport.
23
Energy Crisis
No doubt we need energy for our store or shop but it is not a big job for us because
we are not manufacturing concern. So for little energy crisis we will arrange generator for
our business use.
Lake Of Experts
One of the big issues of our business will be at the time of hiring employees, that we
will unable to hire experts in our business. Actually we need these experts because we
want to maintain quality of fruits. These are the experts, who know about fruits
and their protection methods, can be difficult to find and it will be a major issue if
we can't find these kinds of people. So for this purpose first we will try our best that
we find these people at any cost. Even we will give share in profit; we will try to
make them partners by asking them to invest in our business. If it will not possible
then we will do this business in fruits market for some time, during this time we will
get fruits from fruits market.
Storage Issues
Storage issues and damages of fruits is a big issue of this business. The remaining
fruits which are not sold are one of the major issues. It will be just waste of money and
nothing, even to maintain quality we are not able to store them for a long time.
Because our customers will not like them, and some fruits are not even protected more
than 24 hours like cherry, banana etc. So we have an alternative plan that we will
start our two by products. One "Juice" and second is "Fruit Chart". For juice we will
contract with any beverage factory like Murree beverage etc. they will make juice with
our brand name. Second we will open different outlets of Fruits Charts like in F-10,
F-8 or Karachi Company with our brand name or we contract with different Fruits
Chart Maker to take
a specific amount of daily from
us.
24
In the time of fruit crises if we would be having direct contacts with the farmer,
garden owners so we wont be facing any problem in this problem.
Transporters may go on strike due to some reason and to minimize this risk of
getting or delivering fruits on time, it would be our utmost desire to get our own
vehicles.
Energy crises is a serious problem in Pakistan but we would not only be relying on
the govt. sector to provide us the electricity but also try to have some alternative
ways to produce electricity for ourselves initially on generators than later on may
go for solar energy.
Due to the storage problem of some fruits we would be having in contact with the
juice factories that would make juices for us by our brand name.
25
Quality is
our Royalty
SECTION 08
Harvest Strategy
Mr. Fruity
Quality is our Royalty
26
Transfer of Asset
It is important for the entrepreneur to plan the orderly transition of the venture as it
grows and develops. As the business will grow we will go for the new venture, but
before it we will try our level best to make an excellent good will of our business so that
many of the new investors should take interest in order to invest in it even if you could
acquire it.
Identify Successors
It would be our top most priority to go to the market with first mover strategy, and to take
all the advantages of this strategy. But at the time of growth we need to be careful that this
strategy gives birth to the firms to go into the market with the second mover strategy as a
follower and take benefit of the mistakes if we did. And even we have to be aware during
our own strategy that whatever mistakes we are doing or committed by us then we need to
take active steps to remove those from our strategy and alter our strategy according to the
needs and expectation of the market as well as according to the strategy of the successors.
27
Quality is our
Royalty
SECTION 09
Milestone Schedule
Mr. Fruity
Quality is our Royalty
28
Pr epared By:
Milestone
Slow and steady, wins the race it is a formula of winning any race in any area. So
in our business we will follow this strategy. We divide our whole business in small
and achievable activities and try our best to complete in time. Here we mention some
important steps which we will take in future.
Here we mention our milestone with time and budget. So see next
page
Time
Milestone
1)
i)
ii)
iii)
iv)
v)
Budget
1-Jun-12
725000
15-Jun-12
500000
1-Jul-12
40000
3)
i)
ii)
iii)
4)
i)
ii)
iii)
iv)
v)
vi)
Opening of Outlets
Start Marketing Before Opening (Direct, Print and Electronic)
Purchase Fruits from Fruit Market for a Specific Time period
Opening with Grand Party
Start of Sale
Send our Representatives to different Cities for Fruits
Contract with Garden-men
15-Jul-12
800000
5)
i)
ii)
iii)
1-Aug-12
580000
6)
i)
ii)
iii)
1-Dec-12
640000
29
Mujtaba
Total Budget
1-Feb-15
3285000
30
SECTION 09
Bibliography
Mr. Fruity
Quality is our Royalty
31