Marketing Management

Final Project (Launching a new Product)

Section: B

Presented By:Sarmad Ameer 104205080Kamal Ibrahim 104205081Asad Mushtaq 104205074Zain bin Umar 104205139

Presented to: Sir Mobin ul Haque

Date 21/01/13

University of Management & Technology

EXECUTIVE SUMMARY

ENERG Juice Bar is an innovation in Beverages field. This business is all about

different drinks including mix fruit and fresh fruit juices. Juices are already available in

the market in different outlets like Iceland, Heart & Healthy but the difference is that we

are bringing a new idea of energy juices in fresh form in the market.

We have introduced a wide range of fresh and pure juices with different energy boosters

and vitamins. Our main focus is on the improvement of our customer’s health and to

maintain their fitness level. According to the situation of Pakistan, we have come up

with a new idea that people want the healthy juices. That would maintain their energy

level. So in order to fulfill the requirements of all these factors, we have launched energy

booster drinks.

As the climate of Pakistan is mostly hot, so our business has opened a new door for the

customers to quench their thirst. As the drinking juices is not a part of our culture. We

drink water after every meal or in routine. The purpose of this business is that those

people should get benefit by these juices, which would increase their energy level in their

life. If the real fruits juices could be substitute for these synthetic preparations, it would

be a boon to the customers as well as the fruit grower.

We have targeted the customers of every age group but main target is on youngsters,

sports players, professionals and patients because our motto is to target health conscious

people in order to fulfill their energy requirement.

As a result, we can say that this entire overall business plan helped us to groom our

enterpreneual skills. It helped us to analyze different strategies and enabled us to make

all business strategies in future.

Business DescriptionForm of Business:

The form of business is partnership. There are four partners in our business.

Procedure for Registration:The procedure of registration of a partnership is comparatively simple. Form-I (Annex-A)

in Punjab while Form-A in Baluchistan, NWFP and Sindh provinces under Partnership

Act 1932, has to be submitted to the Registrar of Firms (see flow chart). All the partners

must sign the application. Form-I / A must be attested and supported by the following

documents:

1. Attested photocopy of partnership deed.

2. Partnership Registration Procedure

3. Original copy of Challan No. 32

4. Attested copies of identity cards of partners

5. Attested Copies of identity cards of witnesses.

Owners / Principals:

Sarmad AmeerKamal IbrahimZain bin UmarAsad Mushtaq

Name of Business:

Business Description:

Our business includes different energy juices which are available in the market but our

business is different from others because we are going to introduce juices bar. This drink

bar includes energy juices with different vitamins and energy boosters. This is first time

in the market that all the energy juices would be available in our outlet.

Product Description:

Our product line includes different fruits with combination and without combination. We

are adding energy boosters and vitamins in fruits to provide healthy juices. These energy

juices will not only provide energy but will also help in controlling different diseases.

Our product line includes different energy juices in three categories

Mix fruit juices with best vitamins and energy boosters

Fresh fruit juices with energy boosters

Juices for diabetic patients

Product LineMix fruit juices with best vitamins and energy boosters

Product Name Fruits Energy Boosters+Vitamines

Carrot with Orange Pulp

+

Vitamin B-Complex (citrus)

Oranges, Tangerines and Grapefruit with Pulps

+ +

Muscle Milk(orange cream)

Apricot with Peach Pulp

+

Fast Twitch(sour berry)

Mango with Apricot Pulps

+

Muscle Milk Light (vanilla cream)

Peach, Apple and Pomegranate + +

Vitamin B-12 (cherry)

Apple with Peach +

Vitamin B-Complex (citrus)

Strawberry with Pineapple

+

Muscle Milk Light (strawberry)

Grapes with Apple +

Liquid Calcium Magnesium (orange)

Carrot with Apple

+

Fast Twitch (sour berry)

Product LineFresh fruit juices with energy boosters

Product Name Fruits Energy Boosters + Vitamins

Apple Muscle Milk Light (strawberry)

Strawberry Muscle Milk Light (vanilla cream)

Pineapple Liquid Multi Colloidal

Minerals(tasteless and colorless)

Apricot Liquid Calcium Magnesium (orange)

Peach Mineral Wealth (cherry)

Mango Muscle Milk (orange cream)

Grapes Vitamin B-12 (cherry)

Orange Muscle Milk Light (chocolate)

Pomegranate Liquid Multi Colloidal (tasteless and colorless)

Product LineJuices for diabetic patients

Product Name Fruits Energy Boosters + Vitamins

Grapes with Apple

+

Fast Twitch (sour berry)

Apple with Apricot

+

Fast Twitch (sour berry)

Grape fruitFast Twitch (sour berry)

Peach Fast Twitch (sour berry)

Gap IdentificationNeed:

As juices are already available in the market everywhere. But people want something

different that can provide them energy and make them healthy. Now customer wants

different juices that are fresh as well as energetic. People are getting more sense of their

health so for this purpose they go to different Gyms and Sports Clubs for their fitness. So

there by customers wants something energetic.

Gap:

Now the question is how to find this gap in the market. According to the customer needs

juices are available in the market but they are not providing the required energy for these

activities like Gym and sports. So customer wants to have more energetic juices. As

energy juices are available in the form of tin packs but not in the fresh forms. So

customers’ wants energy juices in fresh forms with different energy boosters and

vitamins.

What we are doing to fill this gap?

What we are doing, we are going to differentiate our juices from our competitors. We are

going to fill that gap by introducing juices with different energy boosters and vitamins.

These juices will not only provide calories but will help in maintaining health and

controlling different diseases. We will also give choice of customization. Customers can

select juices of their own choice. These energy juices will be in fresh form as compared

to our competitors like Red Bull, Energetic. So all this can help us in filling the market

gap.

Marketing PlanMarketing plan includes the marketing research and analysis and the market strategy.

This would eventually tell us how our product is different from the others. As there are

already competitors in the market, the juices we are introducing would be different from

them through the freshness of the juices and vegetables’ and with boosters we are

including in it. Marketing plan includes different sectors that are as follows:

Industry Analysis

PEST

SWOT

PEST ANALYSIS

POLITICAL SITUATION ECONOMIC SITUATION

Political condition of Pakistan is not

satisfactory. Due to political instability,

inflation rate may increase further and due to

this reason, the prices of fruits will go up and it

would increase cost of production. Government

has reduced subsidies and increased taxes, so

every business is being affected by this

decision.

Economic condition of Pakistan is not good

recently. It may affect foreign investment,

which will affect economy and it may increase

inflation rates. It would increase cost of

production. Then there will be low marginal

profits for businesses. If the economy is

unstable, it would eventually collapse the

businesses.

SOCIAL SITUATION TECHNOLOGICAL SITUATION

Change in lifestyle of people can affect our

business. Because trend is changing now. Now

the customers are getting more social to create

relationship like friends, families, professional

linkages etc. Keeping in mind of these changes,

we are customizing the products for our

customers according to their needs.

Technological advancement has changed entire

business environment. Different machines are

being introduced for different purposes like

grinding machines for making juices. New

technology would facilitate in making best

quality juices So technology will help us in

improving our process of production and

improving quality.

SWOT ANAYSIS

STRENGTHS WEAKNESS

Fresh juices Availability of raw material in all seasons

Different energy boosters Expiry of fruits

Vitamins like B-12, B-complex Technical skills for process

Mix fruit juices Limited outlets

Juices for diabetic patients Low profit margins at initial stage

Competitive Advantage Analyzing consumer services

OPPURTUNITY THREATS

Expand outlets in different other areas Competitors like Red Bull, Iceland in market

Juices for different parties and events Flexibility of prices in different seasons

Opportunity to offer new juices & flavors Environmental changes can affect production

Can capture the market for home delivery Changing Trends in the market

Market size and trendsMarket size:

If we look towards the business point of view, Lahore is capturing its market towards the

food items. As people getting more and more conscious towards their health and they

want good and healthy food and juices. So for this purpose, we came up with this idea

that people who have more work load, young generation and sports players, they want

more energetic juices.

At initial start-up, our market size is limited because we are just introducing one outlet in

Shapes Gym. So thereby we have to control on quality, freshness, combination of juices,

energy boosters and vitamins in juices. If we want to grow our market size, then we will

have to attract more and more customers through opening different outlets in sports clubs,

gym centers and different medical centre. Our target is to first get stable in the Lahore

market and then to expand further outlets in different other places of Punjab.

Trends:

As nowadays, the trend is changing in different fields like in cold juices. People want

juices but in different form. Youngsters are more passionate towards maintaining their

fitness and they want to have energy for more creativity. Professionals want active

mindset and active physical appearance for working effectively. While players are also

focusing on fitness. So keeping in mind of these changes, our juices will not only boost

the energy of the people but will help them in maintaining health and fitness.

Major Market Trends:

This is modern time and trend is changing day by day. If we talk about the major market

trends, people want some change because of the European advancement. These major

market trends include different variables.

o Fashion

o Customer’s likes & dislikes

Now we would talk about each factor separately.

Fashion:

First of all, fashion is mega trend. It’s changing day by day. Everyday there is some

innovation. So we need to observe this factor. Like take the example of “Village” etc.

Our customer wants different tastes because trend is changing to better products. Now

customer wants different choices in selecting any product. So keeping in mind of that

point of view about customers, we are going to introduce our juices with different taste.

Now customer can have choice in selecting our drink. Customer also wants comfortable

environment, so we are also giving them the facility of outlet. It would not only provide

them fresh environment but also fresh product on time.

Customer Likes & Dislikes:

Now, it’s also important what customer feels about our product and what he likes.

Customer likes and dislikes matters a lot for us and for that purpose we are introducing

different energy boosters and vitamins in juices. In past there was no concept of different

energy boosters juices in fresh form. But now customers can customize juices according

to their own choice.

Growth PotentialAfter start-up activates and implementing business plan, growth is very important factor.

Growth is achieved by introducing

More target segments

Improving product line

Retaining customers

Attracting new customers

Expanding outlets in different areas

Increasing profit margins

Our business depends upon new innovation with the passage of time. If we would

continue improving and developing different product line, then our business can be stable

and we will lead towards growth. Like take the example of telecom sector U-fone, every

day there is new add on different packages. Due to product development strategy it is

growing day by day.

Barriers to GrowthThere can be certain barriers that can create problem in success of our business. These

factors would not only decrease profit margins but would also affect growth. These

barriers are as follows:

Competitors

Limited Outlets

Economic instability

Increase in expenditure

Change in trends

Competitor’s AnalysisThere is huge competition in the market regarding juices. Competition is of two types

Direct Competitors Indirect Competitors Substitutes

Ice Land Red Bull Coffee tea & company

Heart & Healthy Energetic Masoom’s cafe

Mailee Fresher Lazzur Cafe

Ice Berg Minute Aid Gloria Jeans

Fresh Iceland Nestle Moods cafe

Product Description:Our product line includes three main categories of juices

Mix Fruit juices

Fresh Fruit Juices

Juices for patients

Product Differentiation:Our product differentiates from our competitors in two ways

Addition of energy boosters in juices

Addition of vitamins in juices

Sugar free Juices for heart & diabetic patients

Customer Profile:Our main customers are of four types

Youngsters

Professionals

Sports Players

Patients

While if we look at our competitors, they have targeted overall customers. They didn’t

focus on these parts separately.

Pricing:

Our product price varies from Rs. 110 to Rs.300. The customers have an option of

customization. They can either drink juices with energy boosters or with vitamins

separately or they can have combination of both energy boosters and vitamins in juices.

If we compare our prices with our competitors like Heart & Healthy in Shapes Gym, the

prices vary from Rs.130 to Rs. 250. So it means that there is great difference of prices if

we look at quality and quantity. Because they are not adding energy boosters and

vitamins in their juices. So same prices as of our competitors, we are adding different

boosters and vitamins. As a result, we are having competitive edge over competitors.

Marketing/Advertisement:Our marketing plan is also different from our existing competitors. Because we are focusing on

Above the Line

Below The Line

We are using below the line advertisement strategy. According to our budget, we are

using brochures to advertise our products. We are starting new business and right now we

don’t have that much budget, so we are using this below the line strategy. We are also

marketing through billboards in Liberty Market. These marketing strategies would help

customer for more awareness. As we are targeting Shapes in Lahore only, so that’s why

we are marketing via broachers, billboards instead of TV and radio ads. As more and

more customers are conscious about the different brand products, so thereby we have to

be very specific upon our products and marketing strategies. Thereby, we have to be

more affective towards our advertisement so that we can convince our target customers

towards our product. In this strategy, we are focusing on

Broachers Internet

Market segmentationA market segment is a sub-set of a market made up of people or organizations with one

or more characteristics that cause them to demand similar product and/or services based

on qualities of the products. As we are new in the market so we are dealing with the

energetic juices. Our market segmentation in our initial stage is those people who require

more energy and are more health conscious. Market segmentation is dividing the whole

market into different segments according to the customer needs and wants. It’s basically

includes group of customers who have similar needs and wants. There are three major

segments that are given below:

Geographic Segmentation

Demographic Segmentation

Behavioral Segmentation

Geographic SegmentationIt’s basically dividing the market according to geographic area nation, state, region,

countries, cities. Our target area is the capital of Punjab that is Lahore. So considering our

expenses we are just opening one outlet right now.

Shapes gym in Gulberg III

Demographic Segmentation

It includes age, income, gender, education, occupation and social class etc.

Age:

We have divided into four major segments regarding age.

Youngsters

Sports players

Professional

Patients

Youngsters:As the youngsters are more passionate towards their work and their activities so they

need more energy. And the energy boosters will help the youngsters to make them active

and the weakness they will feel can be gain through the energy booster juices and in these

juices not only the boosters will help them, the vitamins that are added that would also

generate there energy level like the carrot and the apple juice. Any other benefit of having

it as youngsters are nowadays not taking the proper diet so these juices will fulfill their

energy level and maintain their health.

Sports players:As the players want the fitness in their respective game, so their energy level is as well

more as compare to the ordinary people. There by we are introducing these energy juices

in order to fulfill and maintain that energy level which fulfill them. As in different fields

of games the basic thing the players of any game is to maintain their energy. So our juices

are providing with them with energy juices which includes boosters and the vitamins

which is beneficial for the players.

Professionals:As professional people want to maintain their active and their mind set too, so our

product would help them in making it through the energy juices. As they want their

physical and mental to be active and the stress they have for their work load that should

compensate them through the energetic juices. Our product would effectively satisfy in

helping them, to be active towards their work

Age 18-25

Products Both simple and mix fruit juices

Energy Booster (Heavy) Muscle milk (1120g)

Age 18-40

Products Both simple and mix fruit juices

Energy Booster (Light) Muscle milk (750g)

Age 25 & onwards

Products Both simple and mix fruit juices

Energy Booster Fast Twitch (920g)

Patients:The patients have to be concern towards their health too. as nowadays the ratio of the

diabetes are increasing like more people have diabetes , blood pressure and many more,

so we have come up with juices that are planned for the diabetic patients. This would

maintain their health and fitness level. In our initial stage our marketing segmentation is

done towards these people. As our concern is more towards these people and our product

line is towards these people.

Gender:

Both males and females are targeted.

Income:

As our target is middle class and the upper middle class so there salary range should be at

least

Minimum 20,000 and above

Occupation:

Students

Professional

Social class:

Middle class

Upper middle class

Behavioral Segmentation

Age 18 & onwards

Products Special limited juices

Energy Booster Fast Twitch (920g)

In behavior segmentation customers are divided according to their information about the

product, attitude and response towards the product. There are different segments in

behavioral segmentation which we have taken in consideration:

Behavioral occasions

Benefits

Usage rate

Loyal customers

Readiness stage

Behavioral occasions:

This product is not only for any specific occasion. It can be used at any time whenever

customer wants.

Benefits:

Major benefit of our product is fresh drinks that provide energy.

Usage rate:

Usage rate for this drink is medium.

Loyalty status:

We want to increase loyalty of customers with our service.

Readiness stage:

Our customer is unaware of the product so we have made marketing plan to aware more

and more customer about our product.

Target market selection and distribution

“Energ juice bar” aims is to expand his market by promoting different juices with

boosters and vitamins in mix fruit juices and simple juices. Our survey has indicated that

there are no other outlets which are providing these kinds of juices. Our products are

targeting fitness and healthy life. We are using boosters and vitamins for those people

who are health conscious.

Product Specialization:

Here we are using “Product Specialization” pattern of target market selection. In this

pattern, we are focusing on product specialization. There is no such product available in

the market. So this is our differentiation from others. We are selling these different kinds

of juices to several market segments. We want to create strong reputation in this specific

product in the market. For that purpose we need to up-to-date them with new energy

boosters, technology and strategy to improve our product. So that we can provide our

customers with high standards of quality of our products and services. We are targeting

the middle class people and the upper class people because they are the ones who

nowadays more conscious towards their health and fitness level.

Consumer demographicsIn consumer demographic, we would focus on age, income, marital status, and many

others factors for our targeted people. Because we are targeting the youngsters, sports

players, professionals and the patients.

Age range:

Youngsters 18 to 22 years

Sports players 18 to 40 years

Professional 25 to 40 years

Patients 20 + years

Income range:

Considering the income level those people can easily buy our products whose salary is

above Rs.20, 000. For them it is easy to have our products as it would not cost them too

much. They would prefer to buy our products and as compared to other competitors.

Gender:

It is both for the male and the female. As we are opening our outlet in shapes, there are

both genders in shapes. Both male and female can enjoy energy drinks.

Marital status:

Single

Married

Youngsters

Sports players

Occupation:

Students

Professionals

Sport players

Location boundaries:

Right now we are just opening one outlet in Lahore shapes gym. As in the success of our

business we would open more branches like in M.M Alam road and in D.H.A. but right

now our main focus is to open our outlet in Shapes gym only because the health

conscious and fitness people join the gym to maintain their fitness.

Average purchase:

Through our research we have seen that in shapes gym, like “heart & healthy”, the people

do have the intake of the juices at least one time daily. As customers feel thirst and

eventually will go for the fresh juices or the plan water. So, considering this factor, we

have come up that if they want the fresh juices then why not with some energy boosters

and vitamins, which would fulfill their thirst and would also, nourish their energy as well.

Frequency purchase:

As we are opening our outlet in shapes, the frequency of having the juices is more

according to our research. The people mostly drink juices at least one time in a day. So in

this frequency purchase, our outlet would provide them with more energy just in one

time.

Consumer psychographicsLifestyle:

The life style of the people is getting more and more changed. As everyone is looking

forward for their fitness and to have a good healthy life. Looking forward with the trend

going on, we have come up with the Energ juice bar, where the customers will find

energy and healthy juices. As fresh juices are available in different ways in different

places but we have come across to make it more different and fulfill the energy level that

is being required by the customers. Like take the example of youngsters, they want to be

more advance and energetic in this modern era. So keeping in mind of this factor, we are

introducing according to customer needs.

Business demographicsNumber of Businesses:

Right now we are opening only one outlet in our initial stage considering our

expenditures. Because firstly we have to capture the market through customer

satisfaction.

Location of Business:

Location right now is the shape gym opposite to the health & heart. They are providing

with the fresh juices only and we are adding up with the energy boosters and the

vitamins.

Size of Business:

The size of the business is small at initial stage. A small business that is privately owned

and operated, with a small number of employees and relatively low volume of sales.

Purchasing Decision:

As this business includes 4 partners. So every individual would participate in purchasing

decision. Manager is being authorized to look the operation level and as well the

distribution of the fruits, vegetables and especially upon the energy boosters and the

vitamins.

Business psychographicsAs this business is new in the market with innovative juices and the energy with fresh

flavors of the fruits and vegetables. Because nowadays, the fitness level and healthy life

is becoming more essential part of modern life. So this business is having more

importance regarding this new creative generation.

Product DescriptionValue Proposition:Value proposition is; before there was no outlet for energy boosters drinks. So we are coming with this new

idea to provide people with enjoyable environment. There are the additional things that we are

adding in our juices to make it more valuable in the market. We are making commitment

of pure fresh, quality, and energy drinks to our customers as compared to our

competitors.

USP:

USP is unique selling preposition that we are launching a product which no one else is

giving in the market in fresh form. These are some unique proposition of our products.

Fresh Juices

Energy Boosters

Vitamins for healthy life

Relaxed entertaining environment

Pricing Strategy

There are different pricing methods but we are targeting on

Cost plus mark-up strategy

Psychological Pricing Strategy

We are following our cost structure to settle the prices of our Juices according to cost

plus mark-up strategy. The reason is that we are adding value in our Juices in the form of

Energy Boosters and Vitamins. This added value makes the prices of our juices higher

than our competitors. So we will fix our prices according to costs.

Sales & Distribution StrategyDistribution Strategy:The distribution strategy of our business is B2C, Business to Consumers. We will directly serve Fresh Juices to our customers.

Distribution (Direct Vs Indirect):

We are selecting this strategy for distribution of our products.

“Direct Distribution”

We are selling the products of sugarcane directly to the customers. It’s our retail centre

where customers can enjoy our drinks in this outlet.

Retailing:

Retailing means selling goods and services directly to consumer. We are selling our

drinks directly to consumer in our outlet. There is no concept of wholesalers or

distributor in our business. Because we are providing fresh drinks in that specific area at

the spot. So we have removed intermediaries and we are just getting sugarcane from our

suppliers directly and directly selling sugarcane drinks to the consumer in our outlet.

Channels of Distribution:

Channel of distribution means that which ways we are using for selling our product.

There are three ways of channels of distribution.

Exclusive

Selective

Intensive

From these three ways, we are using one channel of distribution that is

“Selective Channel of Distribution”

Selective channel means that we have introduced only one outlet in selected area. Our

product would be available only in those selective areas. After targeting Shapes, we will

introduce these products in other areas through selective channel of distribution.

Promotion/Advertising StrategyAdvertising Strategy:

There are two strategies for advertisement.

Above The Line

Below The Line

We are using below the line advertisement strategy. There are two main things in it

Broachers

Internet

According to our budget, we are using brochures to advertise our products. It is for sure

that we are going to operate our juice bar in the health centers. So our target market will

be the members of that particular health center. What actually we would be requiring to

do is that we will print our three folding brochures with the details of the products we are

offering. They will be then placed on the counter of our juice bar, reception and inside the

sectors of the health club. For our printing of brochures, we will be making deal with the

Patanga Press at Shadman Market. The press will provide us with 1000 three folding

brochures at a cost of 2500 PKR.

Other promotion strategy is that we will be advertising our brand through Facebook.com.

Facebook offers two options for advertising. One is CPC (Cost per click) and the other

one is CPM (Cost per thousand impressions).

Suppliers

Name of Supplier: GNC, Al-Hafeez Towers, M.M.Alam Road (Lahore)

Terms and Conditions: We will decide the prices of all the fruits with the supplier.

We will make a contract with GNC about the prices of the vitamins and energy boosters.

Timely delivery of the raw material i-e fruits and in best condition.

In any case of unavailability, the supplier will be supposed to inform us before a day.

Trade Discount

If we purchase any fruit in bulk quantity, how much discount the supplier would offer us.

How much discount in price they will offer us if it is the season of any particular fruit.

Exclusive Product Rights

Our Company’s Logo “ ENERG JUICE BAR” Our Suppliers for Fruits, Vitamins and Energy Boosters.

Backup Supplier

Our backup supplier is Health from Nature at M.M Alam Road Lahore.

Location

As we are considering the Lahore market so thereby we are just focusing more towards those people who are more conscious about their health. We are opening first outlet in Shapes Gymnasium. Because there people come for their fitness level and our energy juice would help them to boost their energy.

As our main focus is Lahore and the people of Lahore are conscious of their health and they want to have good and energetic juices and food. So thereby the most appropriate place we have found in Lahore is the Shapes Gymnasium.

Logistics

Logistics is a channel of the supply chain which adds the value of time and place utility. As we are dealing with the food item so thereby our main focus is towards the material

handling.

Material Handling:

We will handle our fruits very hygienically Use of plastic gloves while making all the fresh juices We would add energy boosters or vitamins by measuring spoons properly Keep clean our juicers, grinding machines properly after the making of every

juice. We will serve our fresh juices in clean disposable glasses to our customers.

MANAGEMENT

1. Legal Structure:

Our business fall under the Provincial Government so we will follow their rules and regulations. The legal registration of our business will be done by the Provincial Government to make our business authentic and legal.

2. Human Resource Management

Human resource management (HRM) is the strategic and consistent approach to the management of an organization's most valued assets - the people working there who individually and collectively contribute to the achievement of the objectives of the business.

In simple words, HRM means employing people, developing their capacities, utilizing, maintaining and compensating their services in tune with the job and organizational requirement.

Organizational Structure:

Our business structure is flat because we are in partnership. There are no such hierarchy levels and we all will be carrying out our activities ourselves. But later on when we will expand our business, our staff will increase like we will hire a branch manager, an accountant and some workers.

Staffing Plan:

1. Partners:

Sarmad Ameer Kamal Ibrahim Zain bin Umar Asad Mushtaq

Salary package: As we are working ourselves so initially we have decided to give every partner the basic salary of 3,000 PKR. And after that the profit earned will be shared in a way that 60% will be shared among the members and remaining 40% will be the retained earnings. This 40% will be re-invested in our business. The table below shows the estimated profit for each partner.

Month Profit Margin 60% Retained Share Of Each PartnerNovember 21,150 12,690 8,460 2,538December 16,650 12,488 4,163 2,498January 14,400 10,800 3,600 2,160February 9,900 7,425 2,475 1,485March 43,650 32,738 10,913 6,548April 56,850 42,638 14,213 8,528May 68,100 51,075 17,025 10,215June 79,350 59,513 19,838 11,903July 79,350 59,513 19,838 11,903August 68,100 51,075 17,025 10,215September 45,600 34,200 11,400 6,840October 34,350 25,763 8,588 5,153

Job Description:

Asad Mushtaq is for Juice Making.

Kamal Ibrahim and Zain bin Umar are for purchasing of the Fruits, Energy Boosters and Vitamins.

Sarmad Ameer will work as an accountant and he will deal with all the Cash transactions.

Job Specification:

At the time of hiring new staff after the expansion of our business, these will be the qualifications required for our new staff and workers:

Accountant will have to be a BBA graduate and he should have at least 1-2 years of experience. He should have complete and strong grip on accounting concepts so that he should manage his tasks effectively.

The Purchaser should have good communication and bargaining skills. He should know how to bring the supplier in his trust and favor. Also he should have the understanding and ability to get the best raw material. His qualification should be at least intermediate.

The Juice Maker should be intermediate and have good skills in making juices and also have good communication skills with the customers.

CRITICAL RISKS

Potential Problems:

The first problem is that we don’t find a reliable supplier

Availability of the fruits all the time

Due to energy crisis in Pakistan, we will have to bare the cost of UPS.

Unstable Economic conditions which causes the overall revenues of our business

Weak brand recognition because the customers would not be aware of our juices

and our brand.

Obstacles and risks:

Employee turnover

Since our business is new, we will have less experience of success rates and

revenue generation.

Competition is also increasing with the starting of new business so we have the

risk of having any competitor.

At start, our product penetration would be low.

Contingency plans:

We have a backup supplier which is Health from nature

We will purchase off seasonal or unavailable fruits from Makro

UPS is our solution for handling energy crisis

Advertising will be our backup to create our product recognition

Contract with the workers will save us from employee turnover

Strong marketing and advertising strategy

Exit Strategy:

In case of financial loss or any other loss, we have an Exit Strategy to escape or avoid

these conditions. The exit strategy which we are choosing for our business is an

Acquisition. Because we can negotiate price with the acquirer and they convince us with

a higher worth. If we get multiple acquirers, involve in a bidding war, we will prefer that

acquirer who will give us the highest bid. If we would give the preference/value to an

acquirer, they may pay far more than which we are expecting than anyone else.

Milestone Schedule:

Manpower loading:

Asad Mushtaq is for Juice Making

Kamal Ibrahim and Zain bin Umar are for purchasing of the Fruits, Energy

Boosters and Vitamins

Sarmad Ameer will work as an accountant and he will deal with all the Cash

transactions.

CONCLUSION

Bringing change is always inspiring and a unique kind of fun. We also have the same

feelings by launching our innovative idea of opening ENERG Juice Bar for the first

time in Pakistan. All the activities carried out are full of learning and a new experience.

Our aim is to energize people’s lives with our juices and refresh them with different

refreshing tastes. This project will help us in improving our entrepreneurial skills. We

will be able to start and manage our businesses in future. The team work also made us

understand that strength is always a key factor in starting a new venture and preceding it

successfully.