Shaurya Beverages & Company

Business Plan
( 2009 - 2010 )

Health Derives Wealth

 MAJOR PROJECT
“Business Plan”
SUBMITTED BY
Shaurya Group
(PGP-1, SPRING, 2009-10)
GROUP MEMBERS

Ashutosh Mangal (SBM ID: - 09BM001011A006)

Bhupendra Nand (SBM ID: - 09BM001011A038)
Dhannu Rawani (SBM ID: - 09BM001011A035)
Kailash Patel (SBM ID: - 09BM001011A010)
Pooja Bhatia (SBM ID: - 09BM001011A034)

Guided by: -

Submitted on : Prof.
Jinesh Desai 12-
Dec-2009
(Campus Coordinator)
Table of Contents
Name and address of business
Name and address of principal
Nature of business
Executive Summary
Objective
Mission
Key Success
Company Summary
Company Ownership
Start-up Summary
Company Locations and Facilities
Products
Product Description
Competitive Comparison
Sourcing
Technology
Marketing Plan
Target Market Segment Strategy
Distribution Patterns
Main Competitors
Contd…..
Competitive Edge
Marketing Strategy
Promotion Strategy
Distribution Strategy
Marketing Programs
Positioning Statement
Management Summary
Management Team
Operational Plan
Description of Company’s operation
Flow of order for goods
Technology utilization
Financial Plan
Start-up Summary
Key Financial Indicators
Break-even Analysis
Projected Profit and Loss
Bibliography
 •Name and address of business

• manufacturing and selling of nonalcoholic health drinks.

• “Shaurya Beverages & Company” and this business will be
established in Dhar district of Madhya Pradesh.
•
•
•Name and address of principal
•– Ashutosh Mangal
Education – B.Com (Marketing),
MBA (Finance)
Experience – 2 year in HDFC Bank
Mobile No - +91- 94068 69536
Email: - ashutosh.mangal@yahoo.com
Address:- S/o – Mr. Gopal Mangal
Main road – Ojhar
Distt. – Badawani (MP)
Pin – 451550
Name – Bhupendra Nand
Education – BBA (Commerce),
MBA (Marketing)
Experience – 1 year in Pizza Hut
Mobile No - +91- 90397 63584
Email: - bhupendra.nand1201@gmail.com
Address:- S/o – Mr. Babu Lal Nand
Near Telephone Tower, Jhilmila
PS – Saraipali
Distt. – Mahasamund (CG)
Pin – 493558

Name – Dhannu Ram Rawani

Education – B.Sc. (Biology),
MBA (Marketing)
Experience – 2 years as operations manager
Mobile No - +91- 93036 84604
Email: - dkrawani@gmail.com
Address:- S/o – Mr. SudhirRam Rawani
Near Nirmal Industry
New colony, Old Changorabhantha
Raipur (CG)
Pin – 492013
Name – Kailash Patel
Education – B.Sc. (Biology),
MBA (Marketing)
Experience – 2 years as operations manager
Mobile No - +91- 97533 99486
Email: - kailashp09@gmail.com
Address:- S/o – Mr. C. L. Patel
Vill – Beltikary
PO – Singhora
Teh+PS – Saraipali
Distt. – Mahasamund (CG)
Pin – 493558
Name – Ms. Pooja Bhatia
Education – BBA (Commerce),
MBA (Human Resource)
Experience – 2 year as an H.R. Manager
Mobile No - +91- 98934 41515
Email: - pooja_bhatia512@yahoo.com
Address:- D/o – Mr. Laxmichand Bhatia
13/1, South tukoganj,
Kanchan bajh, Indore (MP)
Pin – 452001
Nature of business

•This business will be a partnership firm.

•The Shaurya Beverages & Company will be a manufacturer, distributor

and Marketer of nonalcoholic beverage. The finished beverage products
with our trademarks will be sold in India.

Executive Summary

•Objective - Of this business is to provide such a product to the

people that can be used as totally nonalcoholic cold drink products
from coconuts.

•Goal - Strong commitment of our management and associates—to

become more competitive and to accelerate growth in a manner
that creates value for our shareowners.
•
Mission –
Ø Finest quality beverage in the most efficient time.
Ø Provide community support.
Ø Operate and grow at a profitable rate through sound economic decisions.
•
Company Summary
Company Ownership- The Shaurya Beverages & Company will be a
Partnership firm. All membership shares will be owned by five partners
(Ashutosh Mangal, Bhupendra Nand, Dhannu Ram Rawani, Kailash Patel
and Ms. Pooja Bhatia) with the purpose of using a portion of the shares to
raise capital.

If all funds will raised, based on the pricing established

in the financial section of this plan, the five partners (Ashutosh Mangal,
Bhupendra Nand, Dhannu Ram Rawani, Kailash Patel and Ms. Pooja
Bhatia) will maintain ownership of no less than 51% of the company.
Start-up Summary

The company’s start-up expected expenses 20 lakh, assets 2 crore, and

investment 50 lakh and Investor’s share 1.5 crore.
 Company Locations

Land-- 2 Acre
1 Acre = 43560 square ft
2 Acre = 87120 square ft
Price of Agriculture land in Dhar Area
Near by N.H.

1 Bigha = 1200000
6.25 Bigha = 1 Acre
So, Price of 1 Acre land =
7500,000
2 Acre land =
150,00,000
Products-

Product Brand Name:Coco Crunz

Drink Type: Health Drink

Coconut water (liquid from coconuts)

§Fat (lipid) §Calcium, Ca §Vitamin C, total ascorbic acid

§Ash §Iron, Fe §Thiamin
§Carbohydrate §Riboflavin
§Magnesium, Mg §Niacin
§Fiber, total dietary §Phosphorus, P §Pantothenic acid
§Sugars, total §Potassium, K §Vitamin B-6
§Sodium, Na §
§Zinc, Zn
§Copper, Cu
§
§
Its nutritional characteristics, and begins to excitement-

§nutritious than whole milk

§Less fat and NO cholesterol.
§Coconut Water is more healthier than Orange Juice
§Coconut Water is better than processed baby milk , It contains lauric acid,
which is present in human mother's milk.

Health Benefits of Coconut Water:-

§Kills viruses that cause influenza, herpes, measles, hepatitis C, SARS,

AIDS, and other illnesses.

§Provides a nutritional source of quick energy.

§Expels or kills tapeworms, and other parasites.

 Competitive Comparison

We have made a comparison between our product with the competitor’s

product following is the comparisons:

Fruity
It is notDrink
does not
forcontain
patientsCO
because
2 of It
Coca-Cola
is also notCO
contains for2inpatients
large and it It
Coconut
is bestnot
does for
health
contains
patients
drink
chemical preservatives.
but have lots of preservatives is harmful for health of recommended
CO 2 and has natural
by doctors it is
in it which are harmful for individual.
quantity so it is not good for also good for which
preservatives skin. does not
health. health. affect the heath.

Sourcing -wholesale purchase its green coconuts from Gujarat because

the transportation charge will be low from there.
 Technology

we will take advice from Engineers -

Equipments For Production:-

1.Drink and beverage mixing
machine-
-For mixing all the required
beverages like- coconut water,
natural color flavors, natural
preservatives, coconut flavors,
sweet water etc.

2. Beverage and drink filling -machine will

machinery help us for
filling the
prepared
health drink
in bottles.
3. Testing machine

for testing the quality of

Coco Crunz health drink
so that we can come to
that the manufactured
product is salable or not.

4. Bottle washing machine

machine will help us for washing

all the consumed returned
bottles. This machine will help to
reduce the high use of manpower
in our production plant
5 . Cap fixing machine

This is the machine for fixing

the caps in bottles so that
drinks could not lick from the
bottles . Once all the above
process of testing the coconut
water, filling the beverages,
and packaging the drinkable
beverages finishes than comes
the stage of tightening up the
bottles. This machine helps to
tight all the caps in bottles.
.
Marketing Plan

Target Market Segment Strategy-

§ Our focus market is on all age group mostly consumed by
Females (age group 15- 30) & generally all category of people and in order
to capture the market of health drinks our focus segment will be all age
group be it children, youth or old age.

§The target will also focus on players .

Distribution Patterns - Distribution flow in Madhya Pradesh & Chhattisgarh

Shivpuri

Rewa
Katni
Sagar
Ratlam Sarguja
Indore
Narsimhpur
Korba
Dhar Harda

Raipur
Major competitors

HEALTH DRINK COMPANIES 1.- Mazza

2.- Tropicana health juice

3.- Real juice

4. -Fruity
5. - Appy fizz
SOFT DRINK COMPANIES Thumps up

Pepsi

Limca

Sprite
 Marketing Mix
Product Mix Price Mix
1. Brand 1. Pricing strategy
Four Ps 2. Style 2. Pricing Policy
3. Color 3. Basic Price
Four Cs 4. Design 4. Terms of Credit
Product 5. Product line 5. Discounts
6. Package
Customer Solution 7. Warrant
6. Allowances
Price 8. Service

Customer Cost
Place Marketing Strategy
Convenience Marketing Mix
Promotion Focused on Target
Communication Market

Promotion Mix Place Mix

1. Advertising Distribution
2. Publicity Channels
3. Sales Promotion 1. Wholesalers
a. Dealers 2. Retailers
Promotional Strategy

§ It through web sites which will cost us 10,000 rupees and we

will also do the promotions through ads in Orkut and game play.
§
§ Road shows in front of colleges and coaching institutes we will
give coupons and we will distribute the prizes to the winners.
§
§ We will also keep a scratch card and win Kerala trip for 2
nights and 2 days offer and this scratch card will be under the
bottle cap.
 Name: …………………………………………………………………………….... Age: .....…………….……………....
Phone No: ……………………………………………….. Email: …….……………………………………………………
QUESTIONNAIRE
Q1. Which drink do you prefer?
Soft drink Hard drink Health drink
Q2. Which is your favorite drink?
Coca-cola Pepsi Fruity Mazza
r you what should be the apt price of soft drink?
5 Rs 10 Rs 20 Rs 40 Rs
h quantity do you prefer to drink?
200 ml 500 ml 1 liter
Q5. How often you use to drink?
Thrice a day Twice a day Once a day
Q6. Do you think carbonated soft drinks affect the health?
Yes No Partially
Q7. Do you watch advertisements of health drinks?
Always Some time No
Q8. How do you come to know about new health or soft drinks?
T.V. By Radio (FM) Hoardings Newspapers
ften keep health drink or soft drink at you home?
Always Some time No
Q10. Do you like to drink Coconut water?
Always Some time No
Q11. Who is your favorite brand ambassador of soft drink?
Actors Actresses TV Actors
§Marketing research analysis
- 1.Pie chart of age group %age
2. % age people use to drink non-alcoholic & alcoholic drinks
3. Aware people about harmfulness of cold drinks
4.-%age of people prefer following drink
5.-%age people use to drink Coconut water
6.-Through awareness about the health & Soft drinks
Marketing Research
Biggest Wholesaler of coconut in Choithram Mandi
POSITIONING

There will be a point of parity in our approach , our product will

be totally different from rest of the health drinks and cold drinks in
the following way:

•Image differentiation- that health factor can create a

good image
•Personal differentiation:-less preservatives as compared to other health
drinks
Management Summary

1. Name – Ashutosh Mangal- He has done M.B.A. in Finance & has

thorough knowledge about finance management so he will handle the
financial department on the post of financial manager.

2. Name – Bhupendra Nand – He has done M.B.A. in Marketing and knows all nitigrity of
marketing. So he will handle our marketing Department.
3. Name – Dhannu Ram Rawani- He has completed M.B.A. in Marketing, and has two
years of experience in Shri Shai industry as an operations manager that’s why he has good
knowledge about how to handle operations, so he will handle our operations department.

4. Name - Kailash Patel – Mr. Patel has done M.B.A in Marketing & has two years of
experience in Hanumant Construction Pvt. Ltd. as a marketing manager. So he will be our
Product purchasing manager. And he will also handle the CSR department.

5. Name – Ms. Pooja Bhatia- She has done M.B.A. in Human Resource & has a quality to
manage the people very effectively. She has also 2 years of experience in Shreemaya
industry as an H.R. manager. So she will handle our H.R. Department.
Operational Plan --

The Production Process section will lays out the details of our business day to
day operations. Initially hours of operations - morning 10 am to evening 8 pm.
The days the business will be open- Monday to Saturday.

The physical plant

Equipment

Assets

Special Requirements

Feasibility
Operational Plan -- Operational Activity Workflow

Finished goods (Coco Crunz)

Fig – Flow of working Capital

Inventories
n
tio Cr
d uc edi
Pro tS
ale
s &
ic e c ess s
rv Pr o
Se i n- Cash
o rk -
W

Operations Receivables

Sales
Op ns
era io
ting
ll ect
Exp o
e nse s hC
s Ca
Cash Fund
Fig – Requirements of the Business

Requirements of the Business

Fixed Capital Working Capital

Preliminary Purchase of Establishment Fixed Work-

Expenses Fixed Assets Expenses ing Capital

Land & Machinery Raw Inventories Work In Others

Building Material Progress
Financial Plan

Start-up Summary -
Start –Up Capital
Land -------------------------------- 150,00,000 (2acre)
Construction------------------------- 250,0000
Machinery----------------------------1155000
Licensing-----------------------------10,000

Total = 18665000 Rs

Operating budget for one month

Expenses
Rent
Salary
Depreciation
Insurance
Advertisement
Total(Telephone and Electricity) In Rupees
10000
74500
9625
2100
70000
166225
Initial Marketing Expenses

Hoardings(in prime location) 1 50,000

In local area hoardings 25,000
Leaf-let (100,000) 20,000
News paper advertisement (18*12 340000 for 1 day
size)Indore ,Bhopal , Ujjain
Road show 20,000
Total = 455000 Rs.

Cost bifurcation
Coconut price - 3.00Rs/ per unit
Transport - 1.15Ps/per unit
G&ST (16%) - 0.48/per unit
Total = 4.63 Rs.
 For 500 ml.(In initial stages)
Coconut Price - 4.63 Rs.(Incl.Transportation & Tax)
Preservatives & - 2.00 Rs.
Ingredients
Operating fixed Cost - 11.22 Rs.
Packaging & Sticker - 2.00 Rs.
Distribution - 0.10 Ps
.
Total = 19.95 Ps.

For 200 ml.(In initial stages)

Coconut Price - 1.85 Rs.
Preservatives & - 1.00 Rs.
Ingredient
Operating fixed Cost - 4.54 Rs.
Packaging & Sticker - 2.75 Rs.
Distribution - 0.10 Ps.
Total = 10.24 Ps.
Sales Forecast
Ist (month)

Sales - 5500(liter) * 41 = 225500

Less: cost of goods sold - 5500*24.91 = 137000
Gross Profit - 88495
Operating Expenses
Advertising - 70000
Salaries and wages - 74500
Commission - 22550
Rent - 8,000
Insurance - 2100
Depreciation - 9625
Miscellaneous - 2000
Total operating expenses - 188775
loss - 100280
2nd (month)
Sales - 8000(liter) * 41 = 328000
Less: cost of goods sold - 8000*24.91 = 199280
Gross Profit - 128720
Operating Expenses
Advertising - 80000
Salaries and wages - 74500
Commission - 32800
Rent - 10,000
Insurance - 2100
Depreciation - 9625
Miscellaneous - 2500
Total operating expenses - 211525
Loss - 82805
 3rd (month)
Sales -10000(liter) * 41 = 410000
Less: cost of goods sold - 10000*24.91 = 249100
Gross Profit - 160900
Operating Expenses
Advertising - 90000
Salaries and wages - 74500
Commission - 41000
Rent - 10,500
Insurance - 2100
Depreciation - 9625
Miscellaneous - 2500
Total operating expenses - 230225
loss - 69325
Quarterly (1st) (2nd) (3rd)
Sales - 963500 1435000 1722000
Less: cost of goods sold - 585385 871850 1046220
Gross Profit - 378115 563150 675780
Operating Expenses
Advertising - 230000 265000 280000
Salaries and wages - 223500 223500 225000
Commission - 96350 143500 172200
Rent - 30000 32000 32000
Insurance - 6300 6300 6300
Depreciation - 28875 28875 28875
Miscellaneous - 6600 7000 7500
Total operating expenses - 621625 706175 751875
loss - 243510 143025 76095
Break-Even Analysis
Coconut price for 500 ml - 4.63Rs. .(Incl.Transportation & Tax)
Coconut price for 1liter - 9.26 Rs. .(Incl.Transportation & Tax)

Now its for 1 liter

Coconut price for 1liter - 9.26 Rs. .(Incl.Transportation & Tax)
Preservatives & Ingredients - 4.50
Packaging & Sticker - 11 Rs.
Distribution - 0.15 Ps.
commission - 4.1 Ps
Total = 29.01 Ps.(variable cost)
 Fixed Cost = 166225 Rs.
Variable cost = 29.01 Rs.
Sales price = 41.00 Rs.(average price of 1 liter)

Break-even = Fixed cost

Sales - Variable Cost
= 166225
41.00 – 29.01
= 13863 liter.
We have to sale at least 13863 liter in each month, then we will be reach at our break-
even point .
 10.0 Bibliography

(1). Sandeep Neogi

Manager ( Advt .) Dainik Bhaskar
4 / 5press
complex . A . B . road Indore
Email -
s_neogi@mp . bhaskarnet . com
(2). Abdul Aziz( Fruit Commission Agent
& Order Suppliers )
29 , new fruit market , A . B . Road , Indore
(3)
Rajesh Bhatnagar

Dy . Manager
Madhya Pradesh Financial Corporation
“ Finance House ” A . B . Road Indore - 452001
(4)
S . R . Kamble
Development Officer
THE NEW INDIA ASSURANCE CO . LTD
D . O - II , Khandelwal chambers , 1 st floor ,
Near M . P . F . C South tukoganj , A . B . Road Indore
 (5)

(5) Corporate office & Central Laboratory

6 / 3 manormakganj , aindore

(6)
Book Name - “ Small - Scale
Industry & Entrepreneurship ”
Author - Dr . Vasant Desai
(7) INTERNET
Wish You A Bright Future