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Business plan on Strawberry juice

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Fruit juice industry is one of the largest and vibrant industries in Bangladesh with a reach of almost every corner in the country. This industry is basically filled up with various types of juices like, mango juice, orange juice etc. People are drinking these familiar flavors for quite a long time and seems like there is a good scope for a new a flavor in this market. That gives us a chance to serve this market with a totally different flavor and that is “Strawberry”.

Although people of our country are familiar with this name by now but existing companies are not offering any strawberry juice. Our target is to introduce people with a new distinguished flavor and thus capture our target market gradually. We are forming a new company. We are offering sugar free 100% pure strawberry juice in 250ml, 500ml and 1000ml bottles.

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Initially we are focusing on higher, higher middle and middle class segment (according to income). We will start our operation by distributing our products in Dhaka and Chittagong division.

We will distribute our product by two well known retail chain shops as well as by other retailers through wholesaler. Initially we are setting up a plant which has a capacity of producing 2500 tons per year and we will increase production capacity as demand increases. We are hoping to reach breakeven point in 2nd year of operation. Our detail breakeven calculation is given in financial part. We will use all kinds of tradition media to promote our product including TV channels, radio, newspapers, and magazines.

We will also sponsor various events. Our main focus for positioning is to create a value for money brand by giving superior quality and winning consumer trust. The flavor of our juice itself is the Unique Selling Proposition (USP) of our product. Finally based on the findings of our research team we are hopeful that people will like our juice and we will be able to capture our target market and thus we will be able to run a profitable business.

Strawberry, a new crop in Bangladesh is getting popularity. Due to successful cultivation in 2008-2009 fiscal, hundreds of people are interesting to cultivate strawberry in 2009-2010 fiscal. Strawberry is highly profitable and nutritious fruit. The weather of Bangladesh proved suitable for strawberry farming although this delicious food is normally produced in countries having cold weather, particularly in the west. Strawberry came first in Bangladesh from UK. Though Strawberry comes in 1996, but it was cultivated business purpose in 2005 in Rajsahi. Then day by day the demand of strawberry increased in Bangladesh. For such increasing demand Redstraws Company Limited decided marketing strawberry juice.

Company Overview
Redstraws Company Limited is a Partnership and medium sized business. Statement of Finance
From Partners: Tk. 11 crore
Brac Bank SME loan: Tk.4 crore

Vision
Redstraws Company Limited puts its vision as to build customer’s trust by being committed to highest quality standards and thus to achieve highest market share in the Bangladesh Juice industry. Mission

Quality: Our strawberry juice will be of the highest quality and most nutritious. Innovation: We will take attempts to continuously innovate our product to remain relevant and competitive in the market. Integrity: Customer satisfaction in terms of taste and extensive cooperation between suppliers and retailers in order to deliver value to customers. Aims and Objectives

The aim of our firm is to serve all types of customer in our country within three years according to division basis with the following objectives: Gaining customer satisfaction through quality product

Turn in profits from the second year of operations
The creation of unique and healthy product
Become as the best new fruit juice company in Bangladesh
Product Characteristics
100% pure strawberry juice
Pure Sugar free
Diet Juice
Products will be sold in
– 250ml pet bottle
-500ml pet bottle
-1000ml pet bottle
Insurance coverage:
All equipments and assets purchased will be insured in Bangladesh General Insurance Company. So there is a surety of recovery from any kind of loss caused by uncertainty. Since this business will be commenced as a partnership. The death of one of the owners will not terminate the business.

Target Customer

60% diabetic people
Children
Health Conscious young people
Our distributors will firstly capture high financially able customers and secondly capture middle category and then lower and poor level customer of Dhaka and Chittagong division. When our distributor team will be successful to fulfill 2 divisions then they will try to capture other divisions in this targeting way. We believe if we can use and manage our targeting system appropriately maybe we can capture success to our customer.

Sources of Data

Our source of data is internet, other company profile, published magazine by other company, market survey, questionnaires etc. Findings: Our marketing research department found the opportunity to provide our customers a new test through juice. The juice industry already contains a wide range of tastes and flavors in juice. But we found that there is no juice in the market like “Strawberry Juice”. Our marketing research department surveyed the market and found that there are potential buyers for our product which will satisfy their needs. So, we have the opportunity to enter the market and fulfill the gap. We are going to offer Strawberry Juice with a very reasonable price so that customer can easily get it at their convenience.

Situation Analysis:
We analyzed the situation using the 4C frame work. 4C stands for customer, competitors, company and context. I. Customers:  Redstraws Company Limited is entering its first year of operation. It has tied up sales with two large retail chain, which will be opening 20 stores initially covering two divisions Dhaka and Chittagong within one year. But our prospect will be whole of the country. Redstraws is negotiating with another three large retail chain for another Sylhet, Khulna and Rajshahi division. Those retail group’s sales will capture all types of customer within 2 years. Then Redstraws will try to export this product for international market by multinational company. II. Competitors:

Redstraws Company Limited knows about some nursery which has been started cultivation about Strawberry fruit. Those nursery owners sell just Strawberry fruit not Strawberry juice. There is no Bangladeshi company producing Strawberry juice. But there are some international brands in few reputed super shop; but those are not available in all the place of our country. After all Redstraws has made detailed analysis and found that a major competitive advantage is the assured access to good quality own nursery’s raw material at a very reasonable cost and various types of packaging that other competitors have not made. So it possible for Redstraws to become a big Strawberry juice producer in Bangladesh and must success to earn a lot of profit present and future.

III. Company:

Started as a partnership company Redstraws Company Limited has total investment TK 10 core as the contribution from partners, one has a background in food technology with about 3 years experience in the processed of food industry and others has experienced in the distributor of beverages and a good understanding about all types of market. The initial plan capacity is for cultivation 30 tons of Strawberry in a season and all the cultivated fruits will be used for producing juice. The plant will operate to 6 to 8 months in a year, due to the seasonal production of Strawberry.

IV. Context:

The annual production of Strawberry in Bangladesh is estimated to be about 100 tons. Many lands are not used to cultivate Strawberry, because this fruit is uncommon and difficult to cultivate and many farmers do not know how to cultivate this fruit. So that’s why its production is limited for shortage of cultivation. If its cultivation is increased at any way, it is possible to ensure our production and increasing production increase customer demand in our country and export market and we also can capture large scale of customer that will be made better success.

Marketing Plan
Marketing objectives
Maximum profit margin
Quality leadership
Long relationship with customers
Communication objective
Strategy Marketing objective
Market Summary
We have more clear and specific information about the market and we are also aware of the customer demand. Based on our Research and Development department we are strictly determined to serve our customer needs with a totally new taste of juice like “Strawberry Juice”.

Marketing Strategy
Our marketing strategy is based on becoming the potential choice for consumers in the juice market. Our marketing strategy is based on superior performance in the following areas- Product quality
Product price
Superior taste
Product Avaiability
Positioning Strategy
Redstraws Company Limited will position itself as a value for money brand, one that is tasty, reliable, trust worthily and fun to it. Its appeal will be healthy tasty, better nutrition and firm to eat. Marketing Mix

I. Product Strategy: Strawberry juice is very healthy and refreshing drink since fresh strawberries are full of vitamin C and antioxidants. The new brand name for the new strawberry juice is Redstraws Strawberry Juice. Redstraws Strawberry Premium, Classic and Kids’ choice juices are unique because of their taste and flavor. They are nutritionally rich, available in 250 ml, 500 ml and 1000 ml hygienic non returnable bottle, tin canned, asceptic pack. Product design and package for non returnable bottle (250ml) II. Pricing: We established the price of Redstraws Strawberry Juice with the concept from cost based pricing.

Redstraws Strawberry Premium: 250 ml – 22 500 ml – 40Tk. 1000 ml – 75 Tk. Redstraws Strawberry Classic: 250 ml – 18 Tk. 500 ml- 30Tk.1000 ml – 48 Tk. Redstraws Strawberry Kids’ choice: 125 ml – 12 Tk.

III. Place:
Initially Redstraws Company Limited will supply to their distributors directly and distributors will sell within 1st year Dhaka and Chittagong division and capture all types of customer. In 2nd, 3rd and 4th year we will capture all the divisions of our country and all types of customer. IV. Promotion

The most successful advertising and promotion would be through the following: Television Advertisement- NTV, Channel I, RTV, ATN Bangla which are the most popular television channels in the country. Newspaper Advertisement- Prothom Alo, The Daily Star, Bhorer Kagoj etc. Radio- Bangladesh Betar, Radio Today, Radio Foorti, BBC Bangla service etc. We will also use some bill boards and we will hold a sport event in various universities and colleges for the young generation to promote the product. We will also conduct campaign to offer various departmental stores, general stores, super markets. Customers BENEFITS:

Strawberry is one of the most delicious and nutritious fruit. It has the ability to remove harmful toxin in the blood. It is also recommended for sluggish liver, gout, rheumatism, constipation, high blood pressure, catarrh and even skin cancer. Strawberry is a rich source of folic acid, folic acid helps to prevent / reduce birth defects involving brain. Nutritive Value: Per 100 gm.

Vitamin A: 60 I.U
Vitamin B: Thiamine .03 mg.
Vitamin C: 60 mg.
Calcium: 28 mg.
Phosphorus:27 mg.
Potassium: 220 mg.
Carbohydrates: 8.3 gm
Calories: 37
Redstraws Company Limited seeks to fulfill the following benefits that are important to its customers:

Accessibility: The customer can gain access to our product at their convenience. Customer service: The customer will be impressed with the level of attention that they receive. Competitive pricing: All products/services will be competitively priced relative to competitors goods.

SWOT Analysis:
The Research and Development department did following SWOT analysis which captures the key strength and weakness within the company and describes the opportunities and threats facing the company.

Strengths

Innovative product with new taste and flavor
Trained staff for customer service
Strong relationship with suppliers that offer high quality ingredients and fast delivery schedules Strong distribution channel in the target market area
Weaknesses
Sudden change of the company’s economic situation
Price is higher than competitors
Scarcity of raw material
Opportunities
Unique concept- Competitors currently are not offering Strawberry Juice High growth rate in our target market
Change in container or product classification can be our opportunity Threats
Increased competition
Trend changes
Economical, political and technological factors of the country New entry of similar juice company with lower price

Marketing Analysis
Potential Competitors’ Review
Competition in juice market is very intensive. There are approximately 7 or 8 companies in the industry and there are 10 to 15 brands available in the market. Competition in the area of juice market can be differentiated through test and flavors. The main categories of tests and flavors in the existing juice market are Mango, Orange, Banana, Guava, Pineapple, Coconut, Fruit Cocktail and the existing competitors and brands are Acme Agrovet & Beverage Ltd. Pran Dairy Limited, Akij Food & Baverage Ltd. Shezan juice, Starship, Aarong, Denish.

An analysis of the three major potential competitors is given below:

Acme Agrovet & Beverage Ltd.
Using the experience of manufacturing ethical medicine, ACME ventured to establish The Acme Agrovet and Beverages Ltd. in 2005. Primarily it started with a small range of products like ACME mango and orange juice, which is followed by the introduction of ACME mineral water. Currently The Acme Agrovet and Beverages Ltd. is thinking to launch a wide range of products, some of which are under process of development. Its Juice products are packed aseptically using the unique Tetra Pack technology ensuring longer shelf life, no deterioration during shelf life, and free of preservative related side effects ACME Premium and Classic mango, and orange juices are unique because of their taste and flavor and available in 150ml, 250ml, and 1000ml hygienic UHT packs.

Pran Dairy Limited
The natural and sweet taste fruit juice is derived from the home orchard during the harvest to ensure the freshness and quality of the juice. It gives natural pulp squeezing fresh fruit, vitamins; mineral and other ingredients make the juice refreshing, natural and nutritious. Its Juice products are packed in Returnable Bottle, Aseptic, and Tin canned, Non-returnable bottle. Pran Premium and Classic mango, orange, Banana, Guava, Pineapple, Coconut, Fruit Cocktail juices are unique because of their taste and flavor and available in 65ml, 125ml, 200ml, 250ml, and 1000ml.

Akij Food & Beverage Ltd.
Akij Food and Beverage Ltd, a concern of Akij Group, launched in the local market three varieties of fruit juice under the brand name ‘Frutica’. The three varieties of juice — mango, red grape and red orange — are already available in shops in 250ml PET bottles with prices ranging between Tk 20 and Tk 22. Akij Food and Beverage installed state-of-the-art machinery, imported from Germany, to manufacture the juice. Frutica juices have zero preservatives and no artificial colouring, which helps maintain the pure taste of fruit in these products. Akij Food and Beverage Ltd import mango pulp from India and pulp of other fruits from Germany to manufacture the
juices.

Controls:
From the very beginning we will keep an eagle eye on our consumers’ perceived value. We are planning tight control measures to closely monitor quality and customer service satisfaction. Our company’s goal is to satisfy our customer through superior value so our control standard should also be consistent with our goal. After every month we will evaluate our marketing plan and measure this with the standard. This will enable us to react very quickly in correcting any problems that may occur.

Production Plan
Location Analysis
One 2 acre plot is purchased in Shitakundo district in the outskirt of Chittagong. The area in which the plot has been purchased is an ideal location where there are no factories around and also there is little traffic around during daytime. This ensures a population-free environment to some extent. The corporate office of Redstraws Company Limited is situated in the heart of industrial area of Agrabad with a space of 4000 Square Feet having all the well renowned banks around it. Production Capacity

The current capacity of Redstraws Company Limited is about 2,500 tons per year. But the company will be trying to increase their production every year and try to capture Bangladesh full market coverage. Redstraws Company Limited will produce Strawberry juice from our own manufacturing factory. Strawberry juice will be produced with some elements those are necessary for producing juice. Those elements are pure water, Strawberry pulp, refined sugar citric acid, natural Strawberry flavor, beta carotene.

Organizational Plan
The company’s management philosophy will be based on
Responsibility and mutual respect
Teamwork
A very strong organizational culture
Participation of the owners
Organizational Structure

Financial Plan
Financial Objectives
To increase revenue by at least Tk.160,000 per month for the first year. A double digit growth rate within three years
Continue to decrease variable cost associated with juice production To reach break even point within 2nd year
Total first year sales revenue for the Redstraws Strawberry Juice is projected at 3,45,56,000 Tk. with an average price of 32 Tk. per unit for unit sales volume of 10,80,000 tk. Break-even analysis indicate that the Redstraws Strawberry Juice will become profitable after the sales volume exceeds 16,61,631 early in the product’s second year. Our break-analysis of Redstraws Strawberry Juice product assumes per-unit revenue of 32 Tk per unit, variable cost of 18.76 Tk per unit, and estimated first fixed costs of 2,20,00,000 tk. Based on these assumption, the break-even analysis is:

Break-even Analysis
Cost Structure for making Strawberry juice
Direct Material
Tk.15.148
Direct Labor
Tk.3.612
Variable Cost
Tk.18.76
Fixed Cost
Tk.2,20,00000
Average Selling Price
Tk.32
Expected Sales (First Year)
Tk.3,45,56,000
Expected sales volume (First Year)
Tk.10,80,000

Key to success factors
Employee training to ensure the best juice preparation techniques Marketing strategies aimed to build a solid base with loyal customers Customer satisfaction with high quality juice and services
Management that treats every employee equally
The creation of a unique, innovative and upscale atmosphere that will differentiate. Conclusion:
In conclusion we can see that, the product the company is going to launch has a bright future in its market. As the product is innovative, the consumers are going to appreciate it. And according to the R&D (Research and Development) department this product will be a strong product in product line of our company.

References

http://www.fitday.com/fitness-articles/nutrition/healthy-eating/the-nutrition-of-strawberry-juice.html http://www.slideshare.net/jugal007/shakti-juices-limited
http://www.slideshare.net/rubayatppt/business-plan-of-smoothy-juice-company http://www.assignmentpoint.com/business/marketing-business/assignment-on-marketing-plan-on-lip-smacking-strawberry-juice.html

Cite this Business plan on Strawberry juice

Business plan on Strawberry juice. (2016, Jun 14). Retrieved from https://graduateway.com/business-plan-on-strawberry-juice/

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