A Business Plan

For starting
The Candy Basket Company
Submitted By : Aishwarya K. Taru
BACHELOR OF BUSSINESS ADMINISTRATION
(BBA VI SEM)
THE UNIVERSITY OF PUNE IN PARTIAL FULLFILLMENT
OF THE DEGREE OF
BACHELOR OF BUSINESS ADMINISTRARION
THROUGH
SHRI SIDDHIVINAYAK COLLEGE MAHILA
MAHAVIDYALAYA
PUNE (2017-18)
Submitted To:
Prof.
  Executive Summary
We are starting a business of manufacturing chocolates. Name of the company is
“The Candy Basket”.Our target market is whole Maharashtra. The customers to
whom our products will be supplied are retailers, wholesalers and traders in
Pune,Mumbai,Nashik,Nagpur,Aurangabad etc.The location of our manufacturing
plant would be PUNE.

We would be targeting the consumers of all age groups. The products that we
would offer are:

1. The Candy Basket Chocolate 2. The Candy Basket Milk

Chocolate 3. The Candy Basket Fruit N Nut Chocolate
The core competencies on which our company would be competing are taste and
quality of our chocolates. Our comapny would be a partnership firm. There would
be 2 finance managers, 2 marketing managers, 1 accountant and 1 general manager
as part of the organization.

 General Company Description

Our company will be in the confectionary business. Our company will be involved
in manufacturing of chocolates.

 Vision
Our vision is to be the leading manufacturer of chocolates all over India.

 Mission
We seek to produce high quality products at competitive price using modern
technology to provide high satisfaction to the consumers.
  Objectives
1.To manufacture and provide the customers with the quality products to the best
interest of the customers.

2.To create Price competitive Products as part of the effect to increase the world
access to high quality chocolates.

3.To ensure a hygiene & clean working environment as to continue to produce

Safe & Tasty Products

4. To strive to Meet & Exceed Customer's Expectations so as to ensure a

sustainable business relationship.

 Target Market
 Upper class  Middle class  Lower middle class  All age groups

 About Chocolate Industry

The chocolate market is estimated around 33,000 tonnes valued at approximately
Rs. 8 billion. Bars of moulded chocolates like amul, milk chocolate, dairy milk,
truffle, nestle premium, and nestle milky bar comprise the largest segment,
accounting for 37% of the total market in terms of volume. To push sales chocolate
companies have been targeting mainly adult audiences. Chocolates are being
presented as snack food for the new target audiences. The chocolate segment is
characterized by high volumes, huge expenses on advertising, low margins, and
price sensitivity

Cadbury is the leading player in the chocolate market industry with the penetration
of 70% market share. The company's brands like Five Star, Gems, Éclairs, Perk,
and Dairy Milk are leaders in their segments. Nestle &Amul are the other major
players in chocolate industry. Chocolate industry is growing at steady growth rate
of 25%. Over 70% of the consumption of chocolates takes place in the urban
market. It is price sensitive market.
Until early 90's, Cadbury had a market share of over 80 %, but its party was
spoiled when Nestle appeared on the scene. The other one has introduced its
international brands in the country (Kit Kat, Lions), and now commands
approximately 15% market share. Competition in the segment will soon get keener
as overseas chocolate giants Hershey's and Mars consolidate to grab a bite of the
Indian chocolate pie.

Indian Chocolate Industry’s Margin range between 10 and 20%, depending on the
price point at which the product is placed. The input costs in India are under check
owing to the 24% decline in the prices of sugar.

 Core Competencies
The core competencies on which our company will compete are:

 Taste By consuming the “The Candy Basket” flavor begins to fill your mouth
the moment the chocolate begins to melt on your tongue like butter and it tastes
like pure chocolate rather than cocoa powder. At first there is so much pleasure in
tasting the chocolate, it may be difficult to focus on the specifics of flavor. First
perception the consumer would describe for the chocolate as “chocolaty” and
“Yummy”.

 Quality The raw ingredients are of finest quality and also care is taken of the
production process; roasting and crushing the cocoa beans and mixing the cocoa
paste with sugar and other ingredients such as milk. Yummy chocolates are high
quality chocolates as they are shiny brown, breaks cleanly and is smooth. The
Candy Basket has the sufficient quantities of cocoa butter and vegetable fat so that
it does not become greasy or sticky at ambient room temperature.

Ownership

Our company will be a partnership firm.

  Competitor Analysis
COMPANY FOUNDED IN BRAND PORTFOLIO (confectionery products)

 Nestle 1860s Kit Kat,

 Smarties,
 Wonka
 Ferrero 1940s Rocher,
 Raffaello,
 Kinder, Tic Tac,
 Mon Cheri,
 Nutella
 Mars 1911 Bounty,
 Galaxy, Mars,
 Snickers, Milky
 Way, Wrigley’s,
 M&M’s etc
 Amul 1945 Milk
 chocolate,
 Fruit & Nut
 chocolate
 Hershey’s 1894 Hershey’s milk
 chocolate,
 Kisses, Pot of
 gold, Milk
 duds, Reese’s,
 Icebreakers
 Perfetti
 and Van melle
 merged
 Alpenliebe,
 Chlormint,
 Centerfresh,
 Happydent,
 Mentos
 Minto and
 Candyman
 bite, poppins,
 kismi toffee,
 mazelo, xhale,
 éclair,
 golgappa,
 parlelites,
 orange candy
 Cadbury 1948 (Indian Market) Dairy Milk,
 Dairy Milk fruit
 N nut,
 Dairy Milk
 Shots, Dairy
 Milk Roasted
 Almond, Dairy
 Milk Silk
  Our Products
Sugar, Full Cream Milk Powder, Vegetable Fat, Emulsifiers, Flavors, Whole
Cow’s Milk, Cocoa Butter.

Recipe for milk chocolate

 Take one cup of powdered sugar, one cup of milk powder.  One heaped table
spoon of cocoa powder, about half table spoon of butter, and to this add the
minimum quantity of water required to make a thick batter.  Place this batter on
a stove and bring to a boil on a low flame.  When the batter becomes thick
(shown in Our company will be dealing in the manufacturing of 3 products.

They are:

1. Milk Chocolate 2. Fruit & Nut Chocolate 3. Plain Chocolate

 Ingredients of Milk Chocolate

the clip) stop the boiling, cool.  Pour into suitable moulds, cut, cool in a fridge
and it gets ready.

 Ingredients of Fruit & Nut

Sugar, Full Cream Milk Powder, Raisins, Cocoa Butter, Cocoa Mass, Almonds,
Vegetable Fat, Emulsifiers, Flavors.

 Recipe for fruit & nut chocolate

 First take whatever moulds you like and grease it with butter. Set this aside for a
moment.  Melt the chocolate either in double boiler method or in a microwave.
Remove it and set aside.  Chop up all your nuts and dried fruits. Add it to the
chocolate and mix well.  Take a spoonful of this and fill your prepared mould
and put it in the deep freeze for 1 hour.  Unmould it and keep it in the fridge
until serving.

 Ingredients of Plain Chocolate

Sugar, Full Cream Milk Powder, Cocoa Butter, Cocoa Mass, Vegetable Fat,
Emulsifiers, Flavors.

 Recipe for plain chocolate

 Combine cocoa and sugar and blend until all lumps of cocoa are gone. Add
water and salt and mix well.  Cook over medium heat, bringing it to a boil. 
Keep boiling until thick, stirring to keep from overflowing.  Remove from heat
and let cool.  When cool, add vanilla.  Then put this in your milk, just like
the store bought stuff.

 Marketing Plan
Economics

Total size of chocolate market is 33000 tonnes

Trends in Consumer Preferences

 The range and variety of chocolates available in malls seems to be growing day
by day, which leads to lot of impulse sales for chocolates companies. 
Chocolates which use to be unaffordable is now considered mid-priced. 
Branded chocolates have become more popular.  Mithai is becoming the
substitute of chocolates  Instead of buying sweets on Rakhshabhandan, Diwali,
people prefer to buy chocolates.

 Barriers to entry
 Huge startup costs  Ensuring good quality products to the customers  High
Level of competition from the well established brands  To keep price of the
product low, as it is a price sensitive market

 Overcoming the barriers to entry

 To overcome the barrier of huge start up costs our machinery would be taken
for lease for first few years of business.  Marketing of our products would be on
the basis good quality and healthy products to provide a competitive advantage.
  Product
From customer’s point of view, chocolate is the product which shows their impulse
buying behavior. Customers are looking for low priced chocolates and also it
should have good taste.

 Features and benefits

 Milk chocolate
 Milk chocolate is a stimulator, to the brain, to the emotions, thus, increases your
stamina.  Milk chocolate is high in vitamins B1, B2, D and E. It also contains
potassium and magnesium.  Milk chocolate contains antioxidants that boost the
immune system.

 Fruit N Nut chocolate

 Almonds help in the creation of new blood cells, hemoglobin and help in proper
functioning of vital organs of the body.  Almonds also help in weight loss,
lowering blood pressure, reduction in risk of recurrent coronary heart disease,
solving constipation, etc.  Raisin helps in digestion problems, acidity or
constipation problems.  Raisins contain considerable amount of iron  Cashew
nuts provide protein and fiber to body.  Cashews have no cholesterol. Cashews
contain healthy monounsaturated fat that promotes good cardiovascular health

 Plain chocolate
 Chocolate contains essential trace elements and nutrients such as iron, calcium
and potassium, and vitamins A. B1, C, D, and E.  Cocoa is also the highest
natural source for Magnesium.  The high Magnesium content of Chocolate is
beneficial for the Cardiovascular System and hypertension.  Cancer Fighter 
High in Antioxidants  Cocoa contains flavones, a type of flavonoid that is only
found in cocoa and chocolate.

 Competitors
 Amul  Nestle  Cadbury  Kent

 Niche
Our niche market would be the children and young generation as chocolate is
mostly liked by children and youngsters.

 Marketing strategy for niche market

 Attractive packing: Our Company will focus on packaging to attract children.
 Good quality and healthy chocolates are the factors on which marketing will be
done.

 Promotion
 Local news paper  Local TV channel  Local radio Station  Through
pages and account on Social Networking Sites (Facebook & Twitter)

 Distribution channels

Our products would be distributed through channels like wholesalers, retailers and
our own sales force.

 Operational Plan
 Production
The product will be manufactured by Full Automatic Chocolate Production Line
(QH200), with this system, baking the moulds, depositing, forming etc. series
procedure can be achieved automatically. It's available to depositing all shape of
chocolate. Such as double color filled- inside, nuts etc chocolate. Since our product
are plain as well as nut are added this machine is appropriate.
This machine can produce 100-300 kg chocolates per hour. It can produce
chocolates in different shapes .It can help to reduce cost of chocolates mould. By
Producing Chocolates in different shapes we can attract all segments of market.

The production capacity is fully automated as mentioned above, so the need of

personnel is comparative less than other semi-automatic machine.

 Manufacturing process
Chocolate production is highly sophisticated computer controlled process with
much of the new specialist machinery. Machines like as chocolate cooling tunnels,
enrobing machines, coating machines, moulding machines.

 Chocolate processing: Production flow of chocolate

 Cleaning
When seeds arrive to factory they are carefully selected and cleaned by passing
through a bean cleaning machine that removes extraneous materials. Different bean
varieties are blended to produce the typical flavor of chocolate of particular
producer. Then the bean shells are cracked and removed. Crushed cocoa beans are
called nibs.

 Roasting
The beans are then roasted to develop the characteristic chocolate flavor of the
bean in large rotary cylinders. The roasting lasts from 30 minutes to 2 hours at very
high temperatures. The bean colour changes to a rich brown and the aroma of
chocolate comes through.

 Grinding
The roasted nibs are milled through a process that liquefies the cocoa butter in the
nibs and forms cocoa mass (or paste). This liquid mass has dark brown colour,
typical strong smell and flavor and contains about 54% of cocoa butter.

 Cocoa Pressing
Part of cocoa mass is fed into the cocoa press which hydraulically squeezes a
portion of the cocoa butter from the cocoa mass, leaving "cocoa cakes". The cocoa
butter is used in the manufacture of chocolates; the remaining cakes of cocoa solids
are pulverized into cocoa powders.

 Mixing and Refining

Ingredients, like cocoa mass, sugar, cocoa butter, flavorings and powdered or
condensed milk for milk chocolate are blended in mixers to a paste with the
consistency of dough for refining. Chocolate refiners, a set of rollers, crush the
paste into flakes that are significantly reduced in size. This step is critical in
determining how smooth chocolate is when eaten.

 Conching
Conching is a flavour development process during which the chocolate is put under
constant agitation. The conching machines, called "conches", have large paddles
that sweep back and forth through the refined chocolate mass anywhere from a few
hours to several days. Conching reduces moisture, drives off any lingering acidic
flavors and coats each particle of chocolate with a layer of cocoa butter. The
resulting chocolate has a smoother, mellower flavor.

 Tempering and Moulding

The chocolate then undergoes a tempering melting and cooling process that creates
small, stable cocoa butter crystals in the fluid chocolate mass and is deposited into
moulds of different forms. Properly tempered chocolate will result in a finished
product that has a glossy, smooth appearance.

 Cooling
The moulded chocolate enters controlled cooling tunnels to solidify the pieces.
Depending on the size of the chocolate pieces, the cooling cycle takes between 20
minutes to two hours. From the cooling tunnels, the chocolate is packaged for
delivery to retailers and ultimately into the hands of consumers.
  Legal formalities:
 We could get DIN (Director Identification Number) which is printed, signed,
and sent to Ministry of Corporate Affairs.  Get a TAN (Tax Account Number)
for income taxes from Income Tax Department’s Assessing Office.  We must be
registered Enroll with Establishment Act (State/Municipal), Shops, and Office of
Inspector.  We should also get food process order certificate from ministry of
food processing industries and also doing as business certificate required for our
chocolate industry.

 Personnel
The machine is fully automatic so need of personnel is less. We need skilled
worker for packaging and storage of our product. There would be a need of
professional for checking and maintaining the quality of product.

 Inventory
The basic raw material required for making chocolate is Sugar, Full Cream Milk
Powder, Cocoa Butter, Cocoa Mass, Vegetable Fat, Emulsifiers, and Flavors.

 Management and organization

Company Name: The Candy Basket Company

Owner Partners: Aishwarya Taru

General Manager: Aishwarya Taru

 Job Description:
 Increasing management's effectiveness by recruiting, selecting, orienting,
training, coaching, counseling, and disciplining managers

 Communicating values, strategies, and objectives; assigning accountabilities

 Accomplishes subsidiary objectives by establishing plans, budgets, and results
measurements; allocating resources; reviewing progress; making mid-course
corrections.

 Maintains quality service by establishing and enforcing organization standards.

 Contributes to team effort by accomplishing related results as needed.