BUSINESS PLAN1 Introduction This business plan relates to Bakerman Jelly which is currently sold in the wholesale market and now moving their focus into retailing this particular product. Bakerman Jelly’s strategic focus is to grow their business not only in terms of physical expansion but also to create a brand image which will bring Bakerman Jelly as a day to day usage product. The purpose of this plan is to help the management to create brand awareness for their products and to expand their business to new markets within Sri Lanka. This report is compiled by Pettah Essence Suppliers Consultancies during August and September 2010. This plan is laid out as follows: The plan focuses on the industrial analysis including competitor, customer, macro- environment, etc. We also did our analysis with the use of models such as Porter’s Five Forces, etc. With the results through this analysis we came up with a suitable marketing plan for the next five years. To support the plan and to implement it a clear view on the operational and human resource activities are stated in this document. Along with this a thorough financial analysis is conducted to assess the feasibility of the whole strategic process. Last but not least, failing to implement the suggested solution what other plans can be implemented is briefed under the contingency plan. This document is confidential and has been made available to the individual to whom it is addressed strictly on the understanding that its contents will not be disclosed or discussed by any third parties except for the individuals own advisors. This plan is strictly for information only and does not constitute a prospectus or an invitation to subscribe for shares. Forward looking projections and statements in the plan have been compiled by the promoters for illustrative purposes and constitute an estimated profit forecasts. The eventual outcome may be more or less favourable than that portrayed. 1 Chapter: Marketing plan Management lead by Mr. Kandavel and his partners and assisted by Hip BUSINESS PLAN For further details regarding any confidentiality mater of this plan contact Miss. Michelle Ratnasothy, Consultant of HIP Consultancies. 2 Company Background Pettah Essence Suppliers are well established wholesalers in the essence and bakery products for the past 5 decades. They are well known for their quality and the lowest cost in terms of bulk purchases. The company focuses on more than 1000 products which range from cake essence to products such as Jelly. They are well established in places such as Pettah in Colombo, Kandy and Jaffna. As their business is currently in a stable position for the past many decades for quite a longer period they have not thought of expanding their business. 2 Chapter: Marketing plan BUSINESS PLAN The import raw materials from various places around the world and they are the sole distributors for many of the well established FMCG brands in Sri Lanka. It is a family business which is owned by two cousin brothers on a partnership basis. Their main brands are Bakerman and Twins. Their main time constraints. Despite of all the complexities they are facing at the moment, the management has planned to effectively focus on expansion for the future survival of the company. Chapter: Marketing plan 3 issue in terms of running the business is the lack of human labour and the 2.1 Vision “To become the leading manufacturer and retailer of confectionery and bakery items in Sri Lanka” 2.2 Mission Our purpose is to; • • Create Bakerman as a household brand. Become the leading brand in the confectionery and bakery items market. • Become the ‘Must have’ product at every house. Position our brands in terms of Best Cost Providers. • 2.3 Goals • • • To create awareness among the target audience To expand the markets To build the brand image BUSINESS PLAN 2.4 Objectives 2.4.1 Strategic Objectives • • Open up our own manufacturing plant in Sri Lanka within 2 years Forming an in-house Research and Development team within the next two years. • Continuously coming up with new products targeting the segment of household successfully within the next five years. • Portray our organization as one of the most ethical companies in Sri Chapter: Marketing plan 4 Lanka withn the next three years. • Increasing brand awareness and maintaining a stable loyal customer base for the next two years. • Make our brand Bakerman available extensively in all the retail outlets in Sri Lanka within the next five years. 2.4.2 Finance Objectives • Increase sales revenue by 35% within this year. 3 Industry Overview A major portion of the monthly budget of each household is reserved for FMCG products. The volume of money circulated in the economy against FMCG products is very high, as the number of products the consumer use is very high. Competition in the FMCG sector is very high resulting in high pressure on margins. FMCG companies are trying to outdo each other in getting to the urban areas consumers first, since there is a high turnover rate. But each of them has seen a significant expansion in the retail reach in mid-sized towns and villages. Some who could not do it on their own, have backed on other FMCG major’s distribution network. Consequently, companies that have taken to rural Sri Lanka like chalk to cheese have seen their sales and profits expanding. According to the Lanka BUSINESS PLAN Business Online report. FMCG companies need to respond by innovative marketing means which are high decibel and reach the masses. • As the FMCG companies are expanding their operations they need to have strict control on the processes to contain costs and remain efficient. the supply chain of the FMCG companies needs to be lean and efficient to enable just-in-time production. but at the same are cost effective and doesn’t inflate the promotional budget. Competition has intensified and the dominance of one player across the product range has reduced. which are posing a threat to the bigger FMCG companies. • There has been mushrooming of regional companies. Therefore. . Therefore. the IT and manufacturing systems deployed have to be monitored closely to achieve the desired standards of the business. four major changes have taken place in the last decade in the FMCG sector. Higher innovation and improved availability can help increase the retailer penetration in the rural market vis-à-vis the more saturated urban market Chapter: Marketing plan 5 • As the demand fluctuations have become rampant as brand portfolio of FMCG companies have widened and they are serving large number of small markets. there is increasing need to adopt just-in-time manufacturing principles. Therefore. but there are challenges regarding penetrating in the rural Sri Lanka. the FMCG companies have discovered that large section of rural population yet untapped is ready to accept their products. • Firstly. 1 Strengths Strength is the availability of resources and competencies that can provide advantages and to the organization in achieving its goals and objectives. The strengths faced by Pettah essence suppliers are mainly.BUSINESS PLAN 4 SWOT Analysis In the business context every company has many strengths. opportunities and threats. weaknesses. 6 Chapter: Marketing plan . 4. Through the strengths and by reducing the weaknesses in an organization it will benefit them in achieving external opportunities and also companies need to look out for arising threats to gain more competitive advantage and be more successful. This will lead to confusions and errors in the company’s accounts and other related documents. • Business is done mainly on trust and relationship wise which can be of a greater risk to the organization because the retailers can change their suppliers as and when they desire. factories etc. Even though they focus on cost cutting they believe that it’s important for the quality to be in the expected standard. strawberry. • The main weakness the company is facing currently is that they have four stores only in Pettah and none of the products are brought out to the super markets as they don’t cater island wide. . Chapter: Marketing plan 7 4. pineapple. orange etc.BUSINESS PLAN • They have a wide range of colours and flavors’ such as mango.2 Weaknesses Weaknesses are the “non availability” or the lack of resources and competencies that will either disrupt or obstruct the organization in achieving its objectives. due to that no documents are available regarding the products. • The packaging is not sufficient and attractive enough to draw the potential customers such as households in the target market. • Another weakness would be that they don’t record the transactions that take place in the stores. Especially when thinking of expansion they do not have enough human labour to facilitate and conduct the number of stores. • They also maintain a high standard in the quality of products in comparison to the competitors by importing quality raw materials from abroad. which they offer to the customers to capture the market. • Well established reputation in Pettah as most of the wholesalers and retailers only purchase FMCG items from Pettah Essence Suppliers as they have created brand loyalty. vanilla. Most companies analyses’ the external environment in order to identify potential threats which could occur in the current period and takes action to prevent them. Pettah essence suppliers are facing many threats. • Chapter: Marketing plan 8 • Bakerman has the opportunity to improve on their packaging as that’s the first promotion tactic which will attract the customers to purchase the product. so that they can increase their loyal customer base. lime. due to that the potential target market is .3 Opportunities These are the opportunities created in the external environment towards the business organization.4 Threats A business firm should always avoid threats occurring in the external environment as it will harm the organization. strawberry). chocolate. pine apple. 4. The new flavors’ can consist of mint. • The company has an opportunity of expanding the business into different areas where it will be easily accessed by the customers and also it will be a privilege to create brand awareness amongst more potential customers. • When other competitor brands have many flavours of jelly. orange. bakerman has only four products which will be threat as they need to produce more flavours to capture the target market. Therefore the packaging needs to be done attractively and appropriately. They can come up with more flavors for jelly as currently they are manufacturing only four types of flavors.BUSINESS PLAN 4. • The main threat is that the product is not available everywhere as they don’t cater island wide. apple etc. (Mango. Packaging is very important to any business as it will act as a silent sales person for that particular brand/ product. It is all a matter of how the firm takes advantage of these opportunities in order to gain competitive advantage over the competitors. As the market leader motha could prevent bakerman from entering the super markets by promoting their products more. Chapter: Marketing plan 9 . Also another tactic they can use is campaigning against bakerman by creating a negative attitude towards bakerman products by telling the customers to use a familiar reputed brand. It will also involve a high cost when bakerman try to enter the product into the market as they will have to start from scratch and will need to incur a huge cost when buying shelf space etc.BUSINESS PLAN small as most of the customers are unaware of the brands and products. buying more shelf space as they have a huge profit margin and they have been in the super markets for a long period of time. • Since motha is the market leader in the industry and has highly captured the market the competition is intensifying to bakerman. high taxation. In the domestic environment. The government’s budget decides on the import tax. also when the government budget changes annually the percentage varies. Health consciousness has led people to be more careful in the food they consume. artificially strengthened rupee until April and then allowing it to float and drop in sales due to low disposable income levels of the consumers despite the drop in inflation to 5.3 in March 2009. The reason could be the influence of the western countries cultures and the Sri Lankans like having a full course meal to satisfy them mentally and physically. 2010). The inflation rate will affect the purchase of raw materials and the purchase of jelly by consumers the company will not a great control over the price. Many households from rural to urban areas have adapted to this.1 Political Every good or service in Sri Lanka is being taxed. high interest rates. The government changes the exchange rate every week and it remains the same throughout the week despite the exchange rate changes in the world market (Exchange rates. no preservatives and artificial colouring etc. 2009) 5. (Jayawardena. 10 Chapter: Marketing plan .3 Socio Cultural Having desert after lunch and dinner has become customary even a small piece of chocolate or fruit is considered to be desert.2 Economical Increase in the world prices of the raw materials like gelatin and sugar affects the price of jelly and also if the import tax keeps fluctuating the prices of jelly will fluctuate along with it. According to the Department of Inland Revenue any good or service imported or supplied will be charged Value Added Tax at 12% p. had a cumulative adverse effect on businesses in several ways. 5.a.BUSINESS PLAN 5 Environmental Analysis (PESTEL Analysis) 5. low fat. Many FMCG products are low sugar. Jelly is not a necessity so consumers will use on their disposable income when purchasing it. d) Chapter: Marketing plan 11 the air. The present quality standards law is not very strict on packaging but the environmental laws are changing becoming stricter on disposal garbage because of the threats arising in the environment. (Employers’ Federation of Ceylon.6 Legal According to the Ministry of Environment Food Act No.BUSINESS PLAN 5.5 Environmental The environment is under many threats by garbage disposal on land and in water especially in the urban areas different oxides polluting Ministry of Environment is mainly focusing on because many organisation don’t give much attention to it. Disposal of waste in an eco friendly manner is what the 5. At present the packaging of bakerman jelly by Pettah Essence is not eco friendly which can become a big threat in the future. 1998). Waste liquids are sent into the canals and rivers. Quality standards certification like ISO for the production process system and SLS and SGS for the product is required. Workers deal with machinery so they need to be given a safe work environment. n. 2003) states that roughly 80-85% of the municipal domestic sold waste produced in Sri Lanka consists of organic waster including food items and garden related waste. 26 of 1980 the packaging used should be of suitable quality and of hygiene conditions. 5. glass. Workmen's Compensation Ordinance Act No 19 of 1934 and its subsequent amendments defines the payment of compensation to injured workers is defined in the. metals and other inorganic materials. plastic. Organizations in the FMCG industry have moved from manual workers to automate machinery packaging too is done by machinery. The balance 15%-20% consists of paper. Solid waste is dumped in mash land. Labour is 10% of the cost of production in the . (Perera. (Alagan.4 Technological Because of the advancement in technology companies have been able to reduce their costs to a larger extend which has led them to sell in larger quantities for a low price. Flavoured Pudding Mix. Chocalete. (Harvest. Motha Confectionery Works Ltd. 200g. Flavoured Custard Powder. Harvest is a well known FMCG company in Colombo and its suburbs.1 Motha Confectionery Works Ltd. Mango Flavour. 2010) Chapter: Marketing plan 12 giant in the Sri Lankan FMCG industry. produces and 6. and Diet Orange Jelly & etc. they also can be considered as an indirect competitor since they offer different other instant desserts such as Pudding Mix. Greengage.Strawberry. Baking Powder. Personal Communication. Watalappam and Pudding Mix -Butterscotch. 2010) so they need to be looked after well. It's popular for offering a unique variety of FMCG items including jelly crystals. Caremal. As per Motha they also offer a variety of flavours and other instant desserts. packing.. 6 Competitor Analysis 6. Gelatine and etc. They recently followed Motha in coming up with different flavours of Moss jelly (quick set) which indeed would directly affect the Bakers man’s sales. Corn Flour. Being one of the leading distributes baking and Confectionery products such as Jelly Crystals.BUSINESS PLAN FMCG Industry (Prince. and 500g.2 Harvest Confectionery Ltd. Icing Sugar. They offer different flavours of jelly crystals which may include the newly introduced varieties such as. 2010) . (Motha. They do offer in 100g. Raspberry. Therefore here we should focus on the barriers that need to be prevailing over by new entrants. Since Bakerman introduce different . Also the years of experience they posses in performing in the industry will count the success towards the industry. • Since the Bakerman manufacturing factory located in Pettah there is a great advantage towards its supply and distribution channel. • In this industry there is a high chance of coming up with differentiations of the product. economies of scale are significant to focus on. Also a new entrant to the areas such as Colombo and Kandy where Bakerman well distributed will not be easily overtake by. In such industry.1 Threat of New Entrants (High) because there is a high opportunity for new businesses to enter the market and with an average start up cost in small scale. Therefore we need to give center of attention on reducing the production cost as much as possible.BUSINESS PLAN 7 Porter’s five forces 7. Which means a high potential competition can be expected and successfully compete in the near future. • Chapter: Marketing plan 13 This is an industry that the possibility of promising new entrants is greater. But there is a great chance of new entrant affect to the areas where Bakerman product not well distributed other than Colombo and Kandy. and compete effective with well established brands in the market. So there is a great advantage for Bakerman product to compete and success with the new inexperienced entrants since it is difficult to produce at low cost until new entries become experienced and established in the market. coloring.BUSINESS PLAN flavours of jelly to the market such as mint. When considering the bargaining power of customers it seems to be comparatively high since the switching cost of customers is low due to both substitutes and indirect competitors. it is obvious that the threat of new firms entering the industry is high. Therefore Bakerman generally do not even want to consider switching ingredients suppliers which means switching cost of supplier is definitely low. electricity. water can be eventually affect. Thus it can be considered that the bargaining power of suppliers is evidently low. arpico would not consider on resave a shell space the market where other brands gives a wide choice of brands to purchase. vanilla which is new to the market that will help to reduce the competition. Especially the frequent changes in prices of these might make an impact. When switching cost is very low due to unavailability of brand supermarkets such as keels. to other competing manufactures as well as promoting Jelly under their own brand name would be considered as forward integration where they do not actually deal with suppliers. lime. cargills. enhancing distribution channel and by differentiating the product. essence. but that won’t count toward the productivity cost as much. Chapter: Marketing plan 14 7. etc.2 Bargaining Power of Suppliers (less) • Even suppliers are essential for the success of industry performance Since Pettah Essence is mainly a business which wholesaling production ingredients/ raw materials such as flour. If customer misses one there is always option to . sugar.3 Bargaining Power of Customers (high) • The customers are the ultimate target of all of the industries in the country. 7. Then again treat of new entrants with new flavours which is not available in the market could be always affected. So to compete with treat of new entrants Bakerman should be effectual by lowering cost. • In other hand the bargaining power of suppliers of fuel. Thus. • The price/performance ratio – because of the substitutes for jelly are plenty there are always another option to customers to move on. different brand or substitutes. custard. the threat of substitutes is high as evidenced above.5 Competitor/ Industry Rivalry (High) All the four factors of the industry analysis above ultimately encroach on the direct competitive rivalry between a business and its competitors. Chapter: Marketing plan 15 7. The direct competitors provide a very . Furthermore. • There are also cons related to inefficiencies in delivery service and the unavailability of the brand in outstation. If the customer cannot meet the price of jelly or difficulty of search on a one particular brand name there are verity of similar product available in the market at different price rates. 7. the bargaining power of buyers is relatively low since all buyers have a wide choice of having dominant players in the market in such eminent brands.this would again have a tendency in reducing the switching cost. Well establish brands like Motha. the variations in quality and limited preferred flavors of Jelly would increase the power of its buyers reducing switching costs. etc… under well established brand names. Delmage would definitely make an impact on the unavailability of the brand each and every supper markets. Thus. These choices reduce the switching costs of the customer due to the desire nature of the product jelly.4 Threat of Substitutes (High) • There are many substitutes for jelly. instant watalppan. ice cream. • According to all facts which discussed above There is a quite a big number of other brands competing directly with Bakerman and many indirect and substitutes as well. So the threats of substitutes are very high and competitive hence there are many products that are available in the desserts category such as Instant caramel puddings.BUSINESS PLAN another. Thus. 8. Motha is the current market leader and Harvest is the market challenger. Perera and sons share. Delmage consider as direct competitors which need to be more concern when it come to decision making or strategy improvements on towards the Bakerman jelly. • On overall since the brand is not yet established in the consumers’ mind it has been a disadvantage in competing with the other rivals in the same category. In . Bakerman intend to capture the market leader position by penetrating the retail market. although indirect rivalry is at a minimal direct competition has its effects on the business based not only price but on differentiation which enables it to face competition effectively.3 Current Trends in the market In the current market the demand for instant puddings/desserts are continuously increasing due to the fact that it is easy to make and use. Therefore other similar brands such as Motha. 8. Chapter: Marketing plan 16 who produce deserts items to the same set of consumer market 8 Marketing plan 8.BUSINESS PLAN similar product range with different flavors and quality standards. Therefore it is also important to keep eye on the indirect competitors such as elephant house. Thus. As Bakerman’s awareness level is very poor and as it is new to the retail market.1 Target Market Moving from wholesaling to retailing Bakerman Jelly’s current target market. • Also the indirect competitors are functioning in the large to medium scale with a different and optional range to the customers in the stroke of appetite. Cargils. rather their primary target market would be the households in Sri Lanka as it’s a day to day FMCG product. it is one of the market followers currently.2 Market Position In the market for Jelly. Market Development – where they want to expand their market into different locations as retailers since they are currently situated only in pettah. currently they intend to position and promote their brands. 8.5 Growth Strategies Currently the company does not focus on any growth strategies as they were solely focusing on wholesaling in which they are well established and is the market leader in supplying raw materials. to successfully expand they need to widen their distribution network which they are currently lacking of. especially ‘Bakerman’. instant puddings/desserts have become their choices when it comes to ease of cooking. Hence. The new trend in targeting the children is to coming up with different moulds and shapes of jelly’s and also readymade jelly tubs in different shapes in that case.4 Strategic Focus As Pettah Essence Suppliers are mainly focusing on wholesaling thus far. At the same time.BUSINESS PLAN Sri Lanka as women are becoming more career oriented and engage themselves in different fields of interests. Chapter: Marketing plan 17 8. Hence. In consideration to their retailing sector when analyzing the company’s growth strategies in terms of Ansoff’s Matrix they intend to focus on. the time they spend on cooking is very less though they have the interest of trying them out. Hence. their strategic focus is to grow their business in terms of expanding their market into different locations as retailing and widen their distribution network. Quite similarly the Jelly market has become a very attractive market for children. . Women who are enthusiastic about cooking especially in trying out new recipes find jelly as one of the most suitable ingredient in the preparation of many new desserts. In order to create awareness they intend to focus more on promotional and marketing aspects. As a result they are at present focusing more towards their retailing. cakes. etc. a new trend is emerging where jelly is combined with other desserts such as trifle. Children love to eat jelly due to its different colours and flavours. Chapter: Marketing plan 18 In accordance to the generic strategies of Porter’s the current strategy of 8. Kandy and also Jaffna which is currently of high potential as a result of the end of war. As Bakerman intends to capture the position of a market leader in terms of god quality provider at lower prices. But as the market is very competitive it is vital for Bakerman Jelly to also focus on differentiation strategies. especially in other retail outlets such as supermarkets and other confectionery stores. the use of Bakerman Jelly among the target market is comparatively low with Motha. the company intends to penetrate the market through effective marketing communications and positioning. it should continue with the penetration pricing strategy. This would not be a very effective strategy in terms of trying to penetrate the market and also for market development.7 Pricing Strategy The current pricing strategy of Bakerman Jelly is penetration pricing. etc. 8.6 Generic Strategy Bakerman Jelly is low cost leadership as a result of which they pass on the cost benefit to the customers.BUSINESS PLAN Market Penetration – As wholesalers Pettah Essence Suppliers are the sole distributors of raw materials of confectioneries and bakery ingredients for all the leading companies in Sri Lanka. They should continue to follow the same pricing strategy as it is a product targeted at the mass market including all income levels and social classes. As retailers they have been successful in establishing their products in terms of the reputation of their wholesaling.8 Placing Strategy Currently Bakerman Jelly is only available exclusively in their own retail shops which are mainly situated in Pettah. Yet. 8. Thus far. Pettah Essence suppliers didn’t have . Currently their distribution is in locations such as Colombo where it covers only Pettah. it is important that Bakerman makes their product extensively available everywhere in the market. Thus. Thus. Therefore it becomes an imperative for them to become a Best Cost Provider to focus on differentiation while reducing costs effectively in all possible ways. This will include the relevant distribution cost which is incurred by the supermarkets to distribute our product Jelly in all their outlets around Sri Lanka. Keels. These. they used few agencies in terms of good relationships they had with them to distribute to Kandy and Jaffna. they should widen their distribution all around Sri Lanka. As mentioned above. etc. The distribution was done within the organization on the basis of trust and reliability they had on each other and not with valid agreements. etc. they should make the product available extensively. in order for Pettah Essence to make their product Jelly an everyday product. Hence. in different quantities and in different shapes/moulds as it will increase the range of choices for the target market. agencies too averagely charge a commission of 35% from the selling price of the product. As they are only established in Pettah they would be Cargills.9 Product In terms of the product Bakerman has only four flavours of Jelly which is not adequate and attractive enough to attract the market. Hence.BUSINESS PLAN intermediaries in their retail sector due to lack of man power and the complexity of handling it. We suggest that Pettah Essence should first of all focus on expanding their distribution within Colombo. and the grocery stores around Sri Lanka. Keels. When the company establishes itself within Colombo. the basic cost on distribution which Pettah Essence will bare would be 35% of the selling price of the product. they should focus on coming up with different flavours of Jellys. This will again be by approaching the supermarkets such as Cargills. etc. Quite similarly we suggest Pettah Essence to have agreement with external distribution agencies to distribute to all the other grocery stores. Chapter: Marketing plan 19 should now target all the supermarkets around Colombo. Therefore. and also will be one of the modes through which Bakerman Jelly can become the top of the mind brand. Having new additions to this particular product line will give them . Yet. The supermarkets 8. Laugfs. This captures a lot of shelf space. and also the grocery stores in places where the population is quite high. in order to successfully do this the supermarkets averagely charge a commission of 35% in the selling price. 8. They should also use different colours and different images which represent the respective flavours of the jelly. For example. Hence. . rather mothers in terms of buying them for their children. Hence the positioning statement will be as follows. they should improve their packaging in terms of quality as well as the appearance.11 Promotional Plan 8.12 Positioning Statement One of the targets of Bakerman Jelly is to make their product as a daily used product.10 Packaging Currently the packaging of Bakerman Jelly is very poor in terms of quality as well as attractiveness. They should come up with solid box packaging which is air proofed. Along with the packaging giving different moulds for the jelly would be another strategy to differentiate your product.BUSINESS PLAN the competitor competitive brands in advantage over other terms of differentiation. Chapter: Marketing plan 20 used to position 8. having the packaging of the Jelly in the shape of its flavours will be a Unique Selling Point to Bakerman. This will attract women. Additionally. Bakerman Jelly can also consider of including a specific ingredient that would be of health the conscious which can be product as a healthy dessert. if its strawberry flavoured Jelly the packaging would be in the shape of a strawberry. In other words to make it be a part of their customers’ every memorable moments in life. etc.BUSINESS PLAN “Jolly Life with Jelly” We recommend this statement as we intend to target mainly kids as our target market and also the households. an initial push strategy of some sort is useful because the brand Bakerman and the product Bakerman Jelly is not yet familiar to the company’s target market which is the households. Hence the statement should be catchy. The biggest issue the company might face is when they assume that their brand Bakerman is familiar in the market since they have a well established wholesale market. Harvest. which has captured the market widely and also the target market is unaware about the Bakerman Jelly’s quality 21 Chapter: Marketing plan .1 8.1. engaging the intermediaries such as the company’s retailers such as supermarkets and other grocery stores through networking and through trade promotions will be a smart choice for Pettah Essence Suppliers to do.1 Push and Pull Strategies Push Strategy As Bakerman is new to the market of retailing its’ product Jelly. we are focusing making Bakerman Jelly as the top of the mind brand in terms of Jelly. Actively. As Bakerman Jelly is totally new to the retailing market it’ll be very difficult to get the target market to quickly adapt to this particular Jelly as there are already well established brands such as Motha. The main idea behind this is to make them easily remember and recall our product. unique and suitable for all the segments of our target market. Thus. 8.12.12. Also having competitions such as draws for sending in the packages of the Jelly would also increase the purchase of the product. 8. Once the initiate push marketing strategies at specific segments of the captured target market. There are several instances where pull marketing is especially pertinent.12. Bakerman Jelly can pull in buyers by creating the demand in terms of wide range of choices.12. It’ll also help Bakerman Jelly to acquire leads which can be converted into a loyal customer base in the long run. The first attraction can be done through intensive sales promotions. etc. premiums such as free jelly moulds and recipes.2 Pull Strategy While focusing on a push strategy.BUSINESS PLAN and taste. As Jelly is a FMCG which is widely available everywhere in any retail outlets the possibility of getting your target market to purchase the Jelly only through push marketing is inadequate. . This is one effective source through which the target market can be captured. buy one get one free. 8.1.2. Hence first of all it is important for Bakerman to create brand awareness and build the trust on their brand in terms of quality which will lead the target market to ask for Bakerman Jelly during purchases. preferred tastes and also in terms of higher quality product with lower prices. As they are mainly focusing on wholesaling they do not actually have any specific promotional strategies for their product Jelly. pull strategy should also be utilized alongside for Bakerman jelly. Promoting on mass media wouldn’t be appropriate as it incurs high cost. Hence push marketing will make the Bakerman brand more persuasive and ubiquitous. Free sample giveaways. For example. would be suitable.12.2 Sales Promotions Chapter: Marketing plan 22 company gets the target market to try the Bakerman Jelly then they can A major issue Bakerman is facing currently is their poor promotional strategies. sales promotions will be the most suitable mode of promotion for Bakerman Jelly.1 Pull Promotions As the product is new to the retail market widely. 8. 12.6 Direct Mails With the help of the marketing team in the organization direct mails can be sent to potential customers.4 Leaflets / Brochures Distributing leaflets and brochures outside the retail shops especially in and out of the supermarkets which includes interesting recipes will be an effective method of making your customers aware of your product. A Facebook web page will be created as it’s the best and free promotional plan for Bakerman. etc. 8.2 Push Promotions As trade promotions discounts for the retailers. will be few of the ways through which the retailers can be motivated to push the Bakerman Jelly towards the target market.12. banners.12. 8.12.5 Sampling/premiums with other products As bakery products such as baking powder.3 Buy more shelf space Chapter: Marketing plan 23 Buying more shelf space in the prime outlets such as supermarkets will give them the advantage of making the consumers buy your product more than your competitors’ as it will be available extensively. 8.2. Identifying the potential customers would not be of any issue as we are targeting the mass market.BUSINESS PLAN Free giveaways such as stickers of famous cartoon characters will easily attract children in buying the product. 8.7 Facebook Facebook can be another mode through which you can create a group for Bakerman Brand where you can promote it. Hence. 8.12. POP sales. commission on sales of the product.12. etc are well established in the market under the Bakerman brand name. It will also help Bakerman keep track of its customer base by roughly having an idea of their existing . Any future promotions could also be edited on this page. if the quality and taste is up to the expectations of the customers this will trigger repeat purchases. 8. giving away samples of Bakerman Jelly or as premiums when customers purchases Bakerman bakery products would be an effective way of making your customers try the Bakerman Jelly. in-store promotions such as posters. etc. The ingredients to make this product include sugar. Bakerman will be personally able to connect with its customers and personalize their preference and opinions about the Bakerman Jelly which will give them immense ideas on how to improve the product in terms of the flavor. malik acid and 24 Chapter: Marketing plan . technology which is used and also how to acquire the staff and suppliers. price. It includes an outline of the resources.BUSINESS PLAN customer base. 9.1 Availability of Raw materials All the jelly flavoured products are locally made in the factory. Since we are more focused on the expansion of the business and out distribution networks the operations for the pettah essence of suppliers are limited. machinery used to manufacture. distribution. It is an operational plan for the next three years. gelatine. package. 9 Operational Plan This operational plan is the action plan of the pettah essence suppliers where it leads the company to reach its organisational goals and objectives. The main flavours available in the industry market will be pineapple. With the expansion they are suggested to enter the supermarket chains and grocery shops within Colombo. kolpetty etc. will be focused on expanding their distribution channels to kaluthara. packaging and labelling which is a huge process in the organisation. 9. The raw materials will be purchased by the parent company (Pettah Essence of Suppliers) where they can continue to import the raw materials from abroad. stocks available. 9.2 Equipment needed Pettah essence is currently using machinery for the powdering of jelly.BUSINESS PLAN colour powder. negombo. mout lavinia. and the employee’s payroll etc. An IT system is also needed to keep in track and record information such as the materials needed. Therefore they would need another machine within the next two years for the production process. A data base can also be created with regard to the retail outlets to keep count of all the customers there are in the target market. Maintenance and safety As there are many machinery equipments used to produce jelly in different flavours maintenance of those equipments should be carried out for the .3 Technology required The main technology used for pettah essence will the promotional aspects they want to focus on where they will create a website and also send direct mail to the potential customers regarding the new flavours and essence regularly . A CRM software can be used in the organisation to ensure that the customers are looked after with standard and quality based product.4 Location & distribution The stores are mainly operating in Colombo (pettah). As for the high promotions and the awareness programs. orange. Mainly. strawberry and mango. wellawatthe. In addition to these flavours Pettah essence will hope to produce many other different flavours according to the customer preference. Chapter: Marketing plan 25 the forecast the sales is expected to grow within the next two years due to 9. Then with the growth of sales they can expand to other supermarkets and grocery shops island wide. kandy and jaffna. 5 Quality control As the quality should be maintained at all times of bakersman jelly they will ensure that the quality of the jelly packets are high and will maintain the standard by testing the ingredients and also the colouring used for different won’t be harmful to the health of the customers. . Safety of the employees should be taken care of by training them to use the machinery accurately and also the company should obtain a group insurance policy offered by insurance companies for the entire organisation as a whole. Therefore. Chapter: Marketing plan 26 flavours by chemists to make sure that the issues are eliminated and that it 10 Human Resource plan Pettah Essence.BUSINESS PLAN machines to work effectively to avoid destruction of the regular work that needs to be done. being one of the competitors in the FMCG industry. 9. the management should be capable of recruiting and selecting right people for the right job at right time to ensure efficiency and effectiveness. They also will make sure that all the jelly packets are ISO 9001 certified to maintain the standard and quality of the brand and image. extremely values the overall contribution of its employees as their level of contacts with the target customers decide the path to long term organizational success or dilemma. The . 10.2 Workforce to the sections where each person is responsible. Pettah Essence is consisted of four labourers handling and operating the machinery. in store personal shoppers and data entry and accountants. it should be mentioned that the staff is properly compensated with the amount of work load they undertake since employee satisfaction is a vital aspect in attaining long term objectives.3 Skills required vs.BUSINESS PLAN 10. skills available • • Efficient managerial as well as technical skills Knowledge about the products.1 Management team The company management team. Also. competitors and recent trends. They will be both directly involved in day to day operations as well as behind the scenes. in house.for example the different colors.fluent in English / Tamil and Singhalese. make the customer feel at ease. is such as ware house personnel. you should be looking forward to hire more people to fill in the positions of sales executive. politeness. drivers and etc… Furthermore it is important to mention that at the moment. But in the near future when you are to have your own distribution operation system. currently consist a staff of four. 10. where it involves a manager and three executive personnel who are responsible of undertaking all operational activities of the place. flavors etc available • • Technical knowledge such as adequate computer skills Customer service. Chapter: Marketing plan 27 Currently the employees at Pettah Essence has been categorized according 10.4 Human resource functions By implementing a planning process Pettah Essence will be able to establish the company goals and objectives for a certain period of time. understand customer preferences and knowledge of what the customer is looking for • Staff must have sense of changes in environment. Also they should be given the feeling of having a Currently as mentioned above there are four labourers operating and handling the machinery. The owner of Pettah Essence can implement different means of empowerment and certain activities to make employees feel the sense of belongingness to the organization and make work atmosphere more interesting. Since our client is falling under the category of small business units. best idea generator of the month and also the best chef for the month. Hence it vital that they recruit another set of four employees to handle the production. . This will help employee ethics and honesty. Strategic decisions will solely be made by the top management. As a means of functioning as a whole. as we expect the demand of Bakerman Jelly to increase rapidly in another 2 to 3 years. As a result of expansion the company will be purchasing a machinery to be in use in the year 2010. it is obvious that set out annual targets are fairly smaller than the targets to be achieved by a multinational firm. Quite similarly.2 Training and development Training can be known as the key element to improve the Pettah Essence operations. It is vital that employees are confident and thorough about the job specifications and have a thorough knowledge about the product. Hence a recruitment of minimum of four labourers is vital.4. its uses supportive management team and directors. will build up a good understanding of the business as well as build up their skills. which will give a total of 12 labourers in the production process.1 Recruitment Chapter: Marketing plan 28 and its benefits. A proper planning process will be the basic foundation of Pettah Essence. Such as choosing the best employee of the month. By implementing a training program at Pettah Essence.4. existing employees and the new coming employees. 10. 10.BUSINESS PLAN owner of Pettah Essence will be able to identify the required skills and the number of employees. This will enable the business to identify the employee requirements as well as suggestions. this will lead to increase in production. 5 Organizational Structure (hierarchy. and the executives to undertake all activities. This could increase the profitability as well as the employee satisfaction.3 Compensation Chapter: Marketing plan 29 It is important that the company should take necessary action to develop a compensation package which is more attractive for its staff in terms of. 10. rewarding incremental commissions on sales under step by step basis. after the analysis. Pettah Essence is falling under the category of small business units. providing medical and lodging facilities. thus they should be looking forward to increase the level in order to retain their employees. Currently Pettah Essence wage rates to their employees are in the average level of wages. they get the new recruits to be blend with the old employees and to get them self’s trained which can be known as the on the job training. This can be done through in-house training with the help of existing employees which will not be a huge impact on their cost.flat structure) As we mentioned earlier. The company should also train the new recruits of the production labourers in terms of handling and operating the machinery. we realized that they should carry on having a flat organizational hierarchy. So. So. it is obvious that set out annual targets are fairly smaller than the targets to be achieved by a multinational firm. As a strategy. 10. which are being given to its competitor employees. as a derivation of stretched expenses for staff compensation package. below the chairperson. company would have to stretch out its budget on the provision of miscellaneous expenses from year 2011 onwards. By implementing a on the job training program Pettah Essence will not incur any cost.4. where it would involve an operational manager.BUSINESS PLAN There is no exact recruiting process being practiced in the organization. . 1.450.6 25 .010. 4 8 6 .0 00 . 1 5 6 .844. 6 6 1 2 8 . 5 0 0 2 528 81 15 0 9 2 1 .00 18.9 6 2 Net Sales Revenue 45.00 18. 6 7 2 9 .008 4 .742.000.035.0 0 5 .0 0 2. 9 3 1 .19 24 3 .000.450. 6 1 6 .00.00 5 3 0 1 .707. 9 026.078.0 8 4 9 .419.000.7 69. 4 24. 2 5 5 5 .481.47 C o n t r ib u t io n 3 0 4 .0 0 2 .715. 5 0 4.00 Total cost 1.6 7 2 9 .4 3 2 79 . 0 0 0 8 7 .649.6 5 2 . 0 0 0 .00 48.453.00 E le c t r ic it y 5 .00 1 0 .0 0 0 .691.0 0 21 .50 .4 1 1 .00 Net profit 6.6 7 1 29 1 29 . 8 6 1 .00 30 86.0 0 28.6 7 1 1 . 5 0 1.047 1 .00 1 . 6 3 6 6 6 . 4 8 6 .840.041. 2 8 2 .5 0 0 . 0 0 0 .0 0 5 . 1 3 4 .5 0 0.0 0 0 .000.549. 6 7 2 9 .3 4 4 8 8 .0 0 0 . 6 2 5 .062.000.374.3 2 0 .00 8 4 17.0 0 1 . 0 8 2 .7 5 7 9 .0 0 0 . 2 737. 6 7 1 2 9 .124.0 0 22 .0 0 0 .864.0 00 .0 0 73 .0 0 0 .00 1 0.6 7 18.0 0 1 0 .00 . 6 88.612.256.00 36 .5 0 0 .175. 0 0 0 . 2 5 2 0 . 9 2 4 4 8 . 8 8 6 1 .5 0 1 8 .0 0 2 2 .50 .12 38.775.745. 7 5 11.696.43 34.00 1.4 47 .0 0 73 .3 1 9 .0 0 7 3 .1 8 7.60 N e t S a le s R e v e n u e 8 3 3 .000.640 S a la ry 73 . 1 0 2 6 .008 6 . 6 6 6 .0 0 Rent 432.36 D e p ric ia t io n 10 .0 0 1 0 .000.0 0 7 3 .0 0 2 .000.5 00 .7 0 3 79 7 .9 5 7 . 6 7 6 .0 0 0 .137.00 5 .0 0 1 0 .0 0 1 .0 16 .000.10.5 6 7 .1 2 Total S a le s c o m m is s ofn Units 4 8 . 4 5 7 .00 1 1 8 6. 7 8 0 .374. 1 17 2 0 2 5 .140.0 0 0. 6 1 5 .557.000.575.120.807 7 .0 0 2 .32 0 . 8 8 5 9 8 .1 2 2 8 1 .50 0 .240.5 0 0 .465.5 0 0 . 4 8 6 .0 0 0 .569.000.00 T e le p h o n e 1 .159. 6 5 4 .6 7 T o t a l c o s t water 1 2 9 .3 2 4 85 . 6 7 1 .0 0 1 .0 0 0 .840. 5 1 8 .201. 9 0 7 . 1 0 2 .2 Forecasted Income Statement (2010 / 2011) A pril M ay June J u ly A u g u s t S e p t e m b e r O c t o b e r N o v e m b e D e c e m b e rJ a n u a r y F e b r u a r y M a r c h r 23 .6 7 1.000.3 2 0 .00 6.0 0 2 .75 41.120.520.305.0 0 3 6 .00 2 1 . 0 3 3 .0 0 0 .389.0 0 7 3 .0 0 2 .38 0 0 .05 9 . 2 9 2 .0 0 2 1 . 8 9 0 .0 0 0 .368. 0 7. 2 5 6 9 .680.416.0 0 2 .54 5 . 4 1 8 .575.000.2 9 20.000. 5 3 4 5 . 4 8 0 .33 528.00 1 1 8 4 5.979.00 100. 0 8 1 1 .0 0 0.000.0 0 5 .000.00 5 .6 6 6 6. 8 5 7 .429.267. 0 0 13.1 .940.160. 6 7 2 9120. 5 8 7 0 124.818. 6 7 24. 2 937.103.7 6 5 .0 0 3 6 0.7 9 8 .828.00 20. 5 4 5 .0 0 5 .3 20 .5 0 0 .3 2 3 2 8 6 91 . 7 3 0 . 3 70 103 1 4 .0 0 0.3 2 0 .0 0 0 .259.00 432.0 0 0 .00 0 .482. 60.0 0 0 .297.200 2 . 0 8 3 280 1 .92 251.0 6 0 .649. 0 5 4 .6 6 6 6 6 .840.40 0 .913.75 1 0.00 2.26 4 .0 0 5. 6 7 1 . 1 9 6 2446.3 2 0 . 4 2 1 1 4 .098.496.163. 6 7 2 9 .069.30 23.000.00 .0 00 .10. 0 0 7 3 7 .199.600.0 0 1 0 . 5 0 9 7 .00 0 .00 18. 7 7 6 .3 3 1.00 432.000.0 Other Expen 20.000.874 42 3 .7 4 9 .274. 0 0 2 0 . 0 6 22 6 61 55.32 0 . 7 5 5 9 .36 26.00 .0 0 7 3 . 0 921.576.0 0 Salary 879.6 7 1 . 7 7 9 .2 5 1 1 .BUSINESS PLAN 11 Financial Plan (in Rupees) 11. 3 4 3 .834. 8 4 8 .599.111.00 8 6 .00 7 4 8 6 .0 0 5 .54 136. 0 02.283. 7 5 6 4 .0 0 1 .4.3 2 0.169.840 11.0 0 0.0 0 3 6 .0 0 10 . 4 8 6 .4 2 5 24. 0 0 24.5 0 0 . 0 1 .64 5 .00 1.4 4 4 1.000.006 .00 0 .918 Depriciation 120000Borrowings from all partners (11%) 335.0 0 1 9 .568.5 0 N o o f U n it s S a le s R e v e n u e 1 . 0 0 6.00 1 2 9 .978.00.00 20.00 320.8 1 1 .1.1 Cost and Financing Chapter: Marketing plan 126.6 7 2 9 .0 00 .5 0 1 8 .00 1.3 2 0 .43 32.979.3 5 6.335.00 9. 9 620. 0 0 3 6 . 3 3 2 5 8 . 0 2 8 . 8 8 3 5 9614.0 0 0 . 0 2 6 . 4 2 2 .200.021. 0 3 1 .357.57 0 .3 7 5 .0 0 432.3 2 0 .0 0 1 .00 2 .00 n 6 6 6 . 3 3 5 .0 0 5 .30 22.568 5 .0 0 2 . 0 028.75 Cost Financing Rent 432000Capital Salary 879840Commercial financing (89%) 2. 6 7 1 . 8 614. 7 5 10 1 2 .6 7 1 .0 0 1 0 .922 water 24000Marketing Telephone 18000Borrowings from Partners (100%) 400.5 1 8 9 1 50 .26 1 .0 0 8 4 .52 D ir e c t c o s t Sales commission . 4 8 6 .000 Electricity 60000 Other Expen 20000 Machinery 1500000 Shelf Space 150000 Sampling / Premiums 50000 FacebookFacebook 30000 Direct Mails Direct Mails 10000 Leaflets / Leaflets / Brochures 60000 Brochures Sales Promotions Sales Promotions 100000 Total 3453840 Total 3.0 0 0 .202.6 66 6 .0 0 0.00 432.45 Rent 3 6 .0 0 0 .5 2 5. 1 0 4 . .458.2 67.0 0 Contribution 8.00 1 .00 0 .00 36. 4 8 5 . 0 0 16.6 6 6 .60 70.39 6 .00 18.7 8 8 .059.0 0 2 .30 6 .000.0 0 7 3 .540. 2 5 7 0 6 . 2 8 1 .6 7 24. 6 6 6 .7 4 5 4 4 05 .400.0 0 2 .0 0 2 0.00 1 .0 Direct cost 3 6 .4 1 1 8 6 .00 7 3.000.00 2.12 41. 120. 1 9 5 . 7 5 7 6 4 .813.0 0 0 .338.00 90. 6 7 1 .00 0 .0 103.0 0 O t h e r E x p eDepriciation 1 . 5 8 5 .382.00 0 3 .27 7 3.015.000.50 0 .0 3 4 4 . 6 7 1 2 9 .48 6 .0 0 1 0 .0 0 0 .0 0 7 3 . 6 6 6 . 0 0 0 . 24.000.0 0 5 0 0 5 .553.115.00 0.5 0 0 .840.0 0 0 .00 7 3 .54 .0 0 1 .437.5 0 1 6 .840.66 6 .5 0 0.54 3 4 29 .000.00 N e t p r o f it Electricity 1 7 5 .126 8 . 7 5 3 8 0 .000.0 0 0 .626.00 40.578. 6120.20 .840. 6 7120.0 0 120.8 6 1 6 .0 0 1 .748.00 20.00 0 .094. 8 2 6 .0 0 1 .00 1 8.0 0 1.6 3 3 22 5 4 11 .0 0 0 . 2 5 0 0 .000.00 2 2 31.00 6 . 5 411.10.239.761. 7 5 4 1 .00 2.3 20 .314.6 Telephone 18.732.1 3 No io 885.3 2 0 .00 3 6 . 0 7 5 .00 1 4 0 .491.0 3 8 .717. 6 7 1 .00 1. 3 3 8 .672.978.000. 3 8 6 7 7 8 6 7 Sales Revenue 33. 7 6 72.2 1 1 .000.0 00.91 1 .00 58.48 6 .0 0 10 .862.197. 6 3 7 2 . 0 0 3 6 . 424.029.480 0 .0 3 6 . 8 9 0 . 6 8 9 .943.1 8 2 18 9 .0 0 w a te r 2 .449.006 6 . 6 2 5 1 .0 0 1.000.840. 0 2 .0 0 0.202.790.00 0 3 9 7 .000.15 9 .000.87 3 . 0 1 .641. 502.50 90.840.491.149.00 20.380.00 year 03 31.20 year 04 37.249.000.500.74 169.000.737.295.747.419.00 103.70 126.70 432.599.00 34.00 1.00 35.00 24.50 59.00 72.000.000.19 .800.680.68 200% 55.3 Forecasted Cash flow Statement (2011 – 2015) year 01 Cash In Fl ow sales Capital Total Cash In Flow cash out fl ow Rent Staff salaries Telephone Water electricity Other Exp Total cash out flow net cash flow B/f Carried Down Balance 21.520.000.00 1.044.329.79 11.50 25.389.5 De s cr ipt ion Cost of a product unit OAR (Overhead Absorption Rate) Total Cost per unit Profit Margin Pr ice pe r 100g packe t Agent cost 35% Revenue at hand Profit in hand per unit Expected sales per month in average Per month sales 100 g pack Unit s 25.400.374.04 90.30 955 units 34.840.00 22.00 86.20 1.00 60.45 126.120.000.00 18.00 2.114.38 35.840.00 26.979.089.502.00 24.00 124.249.374.00 33.00 20.017.000.840.340.978.00 24.433.742.00 2.089.45 45.00 1.000.000.742.240.00 18.50 432.000. Cost for the pr oduct uni t Material cost paking cost over head other exp Total 19.000.00 1.50 12.98 8.00 43.00 23.000.149.04 37.00 24.353.00 20.00 1.000.840.000.702.478.000.000.89 27.79 1.840.120.979.36 19.50 1.00 18.00 18.000.256.418.840.356.218.45 11.418.00 18.000.00 31.575.702.00 879.20 59.491.000.00 1.4 Unit Cost The unit cost is for a 100g packet of Jelly.00 20.00 24.625.651.80 3.000.416.00 34.748.902.000.649.50 year 02 26.50 432.00 20.961.04 year 05 45.000.000.353.000.500.575.378.267.239.89 0.820.60 1.BUSINESS PLAN 11.56 Unit Price 31 Chapter: Marketing plan 432.340.380.389.267.864.059.00 24.74 432.00 1. 8 Rent D escription Square feet Price per Square feet Rent per month Rent per year Units 400 Rs.6 Sales and Marketing Costs Activities Shelf Space Sampling / Premiums Facebook Direct Mails Leaflets / Brochures Sales Promotions T lE ota xpens e C (R ost s.7 Salary 11. Per dayRs.) 21 00 21 01 200000 150000 50000 50000 40000 30000 10000 10000 75000 60000 100000 100000 450 700 400 000 Description Monthly paid emloyee salary Rs. Per month 2011 2012 2013 2014 2015 17500 17500 18000 18500 19000 19500 15500 15500 16000 16500 17000 17500 Total monthly paid employee salary 33000 33000 34000 35000 36000 37000 Daily paid employee salary in average 640 Total salary for the daily paid employees 40320 40320 40820 41320 41820 42320 Total salary per month 73320 73320 74820 76320 77820 79320 Total salary per leadership 879840 879840 897840 915840 933840 951840 11. 90 36000 432000 32 Chapter: Marketing plan 21 02 150000 45000 30000 10000 50000 75000 300 600 .BUSINESS PLAN 11. 3 9 4 .677.902.2 9 5 4 7 .000.4 2 6 30 8 1 .192.3 4 4 1 .453.BUSINESS PLAN 11.826 35.961.000.500.8 5 5 30 6 7 .09 20.78 33 Chapter: Marketing plan .909 24.184.562.0 0 7 .9 Depreciation Liife time of the machinery Asset Value Depriciation 12.10 Ratio Analysis Year T o ta l F C C o n tr ib u tio n ( p e r u n it) B E P ( in u n i t s ) R O I = P B T / C a p ita l ( % ) G P M a r g in O P M a r g in N P M a r g in 2011 2012 2013 1 .1 6 1 .5 years 1500000 120000 11.971.747.357.4 0 9 .544.683 NPV PV (1.00 0.11 62.6 7 3 .4 8 2 9 59% 55% 39% Y ears 1 2 4 CF DCF @ 10% (1.00 20.9 0 2 8 59% 55% 39% 2015 2 .430.58 24.500.50 0.748.5 8 5 3 10 6 24% 59% 59% 19% 54% 55% 13% 38% 38% 2014 2 .9 5 3 1 .04 0.1 5 4 5 6 .651.00) 18.00) 1.2 1 2 30 30 30 3 9 . However this plan might not be similar to the actual out come due to risk factors such as. Government tax regulations might be fluctuating at the time when the product is actually lounging to the target market. If the income levels decrease then 34 Chapter: Marketing plan . resource availability of bakerman. target audience income and purchasing power. In order to gaining market share and long term profit. This decision was taken based on the market research we have carried out. then to the prices and targeted profit. customer demand for jelly in the market and so on. geographic considerations in relation to skewness. Increasing the brand awareness of the product and expansion strategy is the best option currently available for bakerman jelly. Those fluctuations will directly course to the cost of production. Recession of the economic situation of the country affects the personal income levels of potential customers.1 Plan A After analyzing current market projection in the industry we have decided to develop brand awareness and an expansion strategy for bakerman jelly.BUSINESS PLAN 12 Contingency plan 12. Unexpected cost increases would be affected to a great extent because the government changes of its tax policies and import and export tariffs and therefore less or Non-availability of materials. evaluating cost and benefit of market alternatives available for target market. BUSINESS PLAN that will affect to the expected purchasing power of customers. we would like to recommend a plan B for Baersman jelly. changes in demand or problems with marketing strategy or distribution channel. if plan A wouldn’t bring the expected benefits in terms of increased market share. 12. And therefore sales will decrease for a certain amount of the target. increased reputation and profits. make brand awareness. Also.2 Plan B Target only the main areas where bakerman products are currently available such as Kandy and Colombo rather expanding the distribution channel. But the brand awareness program will focus on all selected locations targeting future expansion of the market share. The plan B we propose could Chapter: Marketing plan 35 be acknowledged as follows. 13 Balance Scorecard Financial Perspective Goals Survi ve Succeed Prosper Measures Continuous maintenance of healthy cashflow Achieving shorter payback periods or quicker breakeven Continuous increase on ROI and market share Customer Perspective Goals New flavors Customer Satisfaction Measures Most Find preferred out flavors by the customers customer competitors’ . Sales projections may be lower than projected due to direct and indirect competition. Due to the above mentioned reasons. improved customer satisfaction. BUSINESS PLAN brand preferences Preferred retailers Retailers who give more shelf space in their supermarkets. Competition Identify the sales percentage of each flavor’s contribution Introduction competing competitors. Flavor contribution Innovation vs. Internal business Perspective Goals Technology effectiveness Introduction of new flavors New flavors Measures Reduction in the cost of units Effectiveness of introduction of new flavors at supermarkets Chapter: Marketing plan 36 New flavors of competitors available Learning and Growth Perspective Goals Training Measures Effectiveness of factory workers in using the machinery and sales representatives with sales. of new flavors existing with . Technology How is introduction of new machinery contributing towards the overall product quality. Retrieved 07 12. R. Proceedings of the Third International Conference on Environment and Health. 15 Bibliography Performance appraisal methods (n.d.lk/exchange_rates/er100823. 2010. J. R.pdf Harvest Jelly. 2010.net/food-processing-facilities/36-motha. 2010.L. 2010. (2010).John Wiley and sons. from Home: http://stores. from http://www..gov. 2003.S. eds. Mr.pdf Exchange Rates.gvglobalvision.org/publications/Sri %20Lanka%92s_Environmental_Challenges.bok Motha Jelly.hrvinet. from Customs.BUSINESS PLAN 14 References Alagan. (2005). The HR management. 2010. An Overview of the Issue of Solid Waste Management In Sri Lanka in Martin J.).).humanresources. (5th Ed. 37 Chapter: Marketing plan . Australia. Retrieved May 17. Chennai.acju. Vasantha Kumaran. Sri Lanka's Environmental Challenges. Retrieved 07 21.com/performanceappraisal-methods/ Stone. (2009). (2010).gov: http://www. from Global Vision: http://www.burgundybuttons.Human Resource Management. Retrieved 07 21. Madha Suresh and T. (2010). from Motha Home: http://halaal. Retrieved 8 30.com/-strse-1146/Saltbox-Harvest-JellyRoll/Detail.K. India.customs. V.html Perera. Bunch. 1 Summary of the Objectives STRATEGIC OBJECTIVES SMART Manufacturing plant 2 years In-house Research and Development team 2 years New products targeting the segment of household 5 years Ethical company in Sri Lanka 3 years Brand awareness and maintaining a stable loyal customer base 2 years Extensively in all the retail outlets 5 years 38 Chapter: Marketing plan .BUSINESS PLAN 16 Appendices 16. BUSINESS PLAN FINANCIAL OBJECTIVES SMART Increase sales revenue by 35% 1 year 16.2 HR Considerations Chapter: Marketing plan 39 . 3 Risk Factors 40 Chapter: Marketing plan .BUSINESS PLAN 16. ............... 7 4........................................3 Goals.............11 5...................................................................... .......................................................................................................................................................2 2..........................10 5.2 Mission .....................................................................11 5......................4............. 3 2..... 1 2 Company Background ............3 Opportunities......................12 41 Chapter: Marketing plan ..... 3 2................4...............................................................................................10 5......................................... 6 4..............................................................................................................................................................................4 Threats...................................1 Vision ........................................................................10 5...........................................2 Economical..........1 Political...................................................4 Objectives ...1 Motha Confectionery Works Ltd.....................................................................1 Strengths....................................................................................................................................................................................5 Environmental.................................................................................................................................4 3 Industry Overview............................ 8 5 Environmental Analysis (PESTEL Analysis)...................................................................4 2......................................11 6 Competitor Analysis.......................................................................... 4 4 SWOT Analysis .............6 Legal.........................3 Socio Cultural................... 3 2..... 8 4..2 Finance Objectives..........BUSINESS PLAN Table of Contents 1 Introduction...1 Strategic Objectives...........................................4 Technological..............6 4.....................................................................................................................................................................................................................................................12 6. 4 2................................................................................2 Weaknesses........................................................................................................................................10 5............. .........24 ......................12...................................2 Market Position...........................................................................................................................4 Strategic Focus.................2 Sales Promotions............................................15 8 Marketing plan ......................................................................16 8........2 Bargaining Power of Suppliers (less)....................................................................................................................3 Current Trends in the market.............................................................................19 8.......................................................................5 Growth Strategies.............................22 8...........................16 Chapter: Marketing plan 42 8..............................................................................................4 Leaflets / Brochures..........................................................18 8.............................16 8...............................20 8...................14 7........23 8.12...................21 8.............................................................................2 Harvest Confectionery Ltd......................................1 Push and Pull Strategies.....................................8 Placing Strategy................................................................................1 Threat of New Entrants (High)...........................................18 8.......23 9 Operational Plan ...............................................................................................7 Pricing Strategy....................20 8...12 7 Porter’s five forces.23 8.........5 Sampling/premiums with other products.......................................6 Direct Mails...13 7......................................12..............................................................................18 8.................15 7...........................................................................................................................................................................................................................................................12.........................23 8..................................................................13 7.........6 Generic Strategy..... ..................3 Buy more shelf space.23 8...............................7 Facebook...........................9 Product............................................11 Promotional Plan...........12..................5 Competitor/ Industry Rivalry (High).............12.................12......17 8.............................BUSINESS PLAN 6...17 8..........................................................4 Threat of Substitutes (High).............12 Positioning Statement.......3 Bargaining Power of Customers (high)................10 Packaging...........1 Target Market.................................16 8.......................................................................................14 7...........20 8...... ..................................................................27 10.......................................4 Unit Cost ...................10 Ratio Analysis...................2 Plan B....................................9 Depreciation..27 10........................................24 9....29 10.................................3 Skills required vs.....................4.......................................................28 10........................32 11.......................................................3 Forecasted Cash flow Statement (2011 – 2015)..........................31 11........27 Chapter: Marketing plan 43 10........................................................................................................BUSINESS PLAN 9.........................................................................................25 9..........................4 Location & distribution...........................................33 12 Contingency plan ..........2 Workforce....................... skills available.......................................7 Salary...........34 12................... 32 11............................................................32 11..............31 11.............................26 10 Human Resource plan..1 Plan A.................................................................................................................................29 11 Financial Plan (in Rupees)..................................30 11................................................4 Human resource functions...................................3 Compensation..............1 Availability of Raw materials ...................................................................1 Recruitment.....................flat structure)................................. 35 .8 Rent........................................................................................31 11...............................2 Equipment needed............................2 Training and development...............................................................................................................2 Forecasted Income Statement (2010 / 2011)............................................................1 Cost and Financing......................1 Management team...28 10...................4..................................................................................................6 Sales and Marketing Costs.....27 10.......26 10..........................5 Organizational Structure (hierarchy........................................................................................................................................................................30 11.......................................................................3 Technology required ............................................................................................4.........34 12..................................25 9...........5 Unit Price..........25 9.............5 Quality control .....................................................30 11......................................................33 11................. ................................................................................................................38 16............40 Executive Summary The focus of the report is to give effective and efficient solutions for Pettah Essence Suppliers to successfully to expand themselves around Sri Lanka.................................................1 Summary of the Objectives...................................................3 Risk Factors.. The expansion is related in terms of widening their distribution channels 44 Chapter: Marketing plan ......................................... 37 16 Appendices................2 HR Considerations............................................................................................39 16.............BUSINESS PLAN 13 Balance Scorecard ...................................................................................35 14 References.....................................................................................37 15 Bibliography.........................................................................38 16....... Finally. The feasibility of the whole project is assessed through a financial analysis which forecasts and projects the organization’s performance in terms of the particular product Bakerman Jelly. Thus. Therefore. especially Jelly. a contingency plan is suggested having the consideration that there’s always a certain amount of uncertainty which can obstruct what we plan. . Hence.BUSINESS PLAN along with increasing level of awareness about their products. a HR plan Chapter: Marketing plan 45 is also recommended to the management. This was followed by a thorough plan on how their operational activities and requirements should be fulfilled in order to successfully expand their business. It is also vital to understand the HR practices that should be implemented. If the management has any further inquiry do not hesitate to contact our consultancy firm. we are quite confident that this report will be of great use and support to the management of Pettah Essence Suppliers. we as a consultancy team implemented and carried out a thorough analysis to identify the possibilities and the best ways to expand their business. As a result of our analysis we suggest a marketing plan which focuses on how their current marketing mix should be improved.