Pineapple Express

By
Jim Tereau & Mike Dumas

Mgmt-388-01, IBUS-388-01
Professor OBrien
April 6, 2016

Contents
Pineapple Express...................................................................................................... 1
By............................................................................................................................... 1
Jim Tereau & Mike Dumas........................................................................................... 1
Company & Management Summary..................................................................................... 3
Industry......................................................................................................................... 3
Market Research.............................................................................................................. 4
Products & Services......................................................................................................... 5
Market Analysis Summary................................................................................................. 7
Strategy & Implementation Summary....................................................................................8
Pro Forma Description.................................................................................................... 10
Works Cited.............................................................................................................. 12

Company & Management Summary

Pineapple Express is a partnership, founded by classmates Jim Tereau and Mike Dumas in the
year 2016. After researching global economies that have been emerging in recent years, Costa

Rica was identified as a country that could be very resourceful to a business. Furthermore, it was
evident through research (which will soon be presented) that pineapples were one of Costa Ricas
finest products. After noticing an issue at Nichols College, as well as neighboring colleges in
Worcester, MA, with students dissatisfaction towards the dining services due to the quality of
food and time of availability, Jim and Mike decided to take action, and formed Pineapple
Express. Pineapple Express is a company dedicated to providing the freshest, highest quality
Pineapples to consumers. Starting specifically on college campuses, Pineapple Express goal is to
provide students with a healthy snack in a convenient fashion.
Industry
Fruits and Vegetables Market U.S.
Revenue: 4 Billion
Annual growth rate: 0.4%
Employment: 31,438
Business: 12,407 (IBISWorld , 2015)
Our market is not as big as other markets like the gas market but we still have some growth in
the near future. "The bulk of industry growth is spurred by an increased focus on the health
benefits of fresh fruits and vegetables" (IBISWorld , 2015) . Pineapple express not only live by
the words fresh fruits but thats is one of the main things we want our customers to thing about
when they here our name "Pineapple Express". In order to successes in this market we need to
make sure that we get the message through our target market about us being fresh and healthy all
around and that our product is high grade and is the best quality pineapple out in the market. If
we manage to make enough money within a year or two if we keep on going then we can plan on

expanding by renting our buying our first store. Which then will need to maintain and carry our
prestige of being healthy and fresh with the new store.
Market Research
Internationally, the pineapple market has provided a great inconvenience to large
companies, especially in recent years (Ruinbal, 2016). Demand for fresh pineapples is not only at
a high, but is increasing year by year. However, the supply and demand are unbalanced, and at its
rate, demand will likely continue to out-space the supply available to large companies in the
2016 global market (Ruinbal, 2016). According to market insiders, The equation is simple to
resolve, yet it seems that only the vagaries of the weather or agronomic problems have the key to
doing so (Export Impact for Good, 2013). As a seasonal fruit that relies heavily on the
environment, it is hard for suppliers to accommodate to such a large demand. Furthermore,
Pineapples are only (well) produced in certain countries, making it difficult to supply a demand
that is world-wide. Of these certain nations, Costa Rica holds a significant lead (Export Impact
for Good, 2013).
Market Insiders at the International Trade Center shared that The Costa Rican giant
completely annihilated the competition: in 2012 it represented 85 % of the supply on both the
European Union (EU-27), and the United States of America (Export Impact for Good, 2013).
Costa Ricas environment is extremely optimal for the growth of fresh and high quality
pineapple, giving Costa Rica the advantage in establishing their dominance. The same cannot be
said for countries such as Ecuador, whose pineapple market collapsed, or others such as
Indonesia who have managed to maintain the market at best (Export Impact for Good, 2013). In
addition, Costa Rica has a healthy economy, full of suppliers looking to export. The international
supply struggle that has become growingly prominent tin recent year has made it hard for large

companies, especially supermarkets, to put Pineapples products on their shelves (Ruinbal, 2016).
Supermarkets and other large companies offer an extremely vast variety of food to their
customers, making it difficult accommodate for one specific foods demand, especially when
supply is low. This means consumers in the pineapple market do not have convenient access to
this product, regardless of their obvious demand. According to Doing Business in Emerging
Markets- Roadmap for Success, an important aspect in understanding a market is understanding
its potential (Doing Business in Emerging Markets, n.d.). In other words, is there an unsatisfied
demand for this product/service? Our company, Pineapple Express, has identified this unsatisfied
demand, and sees an overwhelming chance for a company to provide quality pineapples to
consumers, and meet the growing demand that supermarkets and large companies cannot.
Products & Services
Pineapple Express is a company dedicated to supplying American consumers,
specifically in the area of Massachusetts, with the highest quality pineapple product possible. As
a small company, Pineapple Express can easily access low quantity orders of high quality
product. More importantly, market research has shown that there is a large demand for said
product, especially at the quality we will ensure. Low quantity orders also provide the benefit
minimal/no shipment fees. By focusing specifically on the demand of the pineapple market,
Pineapple Express can turn a significant profit.
Due to the fact that pineapples are a seasonal fruit, the market itself provides a significant
advantage to countries with environments that can accommodate. Through market research,
Costa Rica has been identified as the best country to supply Pineapple Express product, through
their ability to meet our fruit products environmental requirements, and their healthy

environment full of suppliers. Of these suppliers, we researched and discussed each in order to
identify our best option.
Agricola Industrial La Lydia is a Costa Rican company that offers a wide
variety of exotic fruits to customers world-wide. Pineapple Express chose this company as our
supplier for both convenience and quality purposes. In terms of convenience, orders from
Agricola Industrial La Lydia can be made in a wide variety of sizes, ranging from packages, to
boxes, and even to pallets. The companys quality of product is also evident, not through their
variety of order size, but through the companies evident understanding of a pineapples
production needs as well. On their website, AILL provides readers with many facts about their
pineapples, and explains how they monitor the altitude and water deposit in their fruits to ensure
taste and quality that will satisfy customers (The Real Golden Pineapple, n.d.). Furthermore,
once this process of monitoring growth is done and the fruit is ready to be sold, AILL also
explains how they choose the best pineapples by measuring the fruits leaf size and scale
arrangement. Pineapple Express will be ordering the highest quality of tropical pineapples
available in Costa Rica from AILL, specifically a tropical pineapple that belongs to the
Bromilaceas family (The Real Golden Pineapple, n.d.). This tropical pineapple we chose
provides our company with many advantages, by providing our consumers with numerous
benefits that most supermarket pineapples do not. The tropical pineapple we are importing from
Costa Rica contains many medicinal properties, including micronutrients that prevent cancer and
dissolves unhealthy blood clots. Furthermore, diuretic properties held by our pineapple
stimulates kidneys and helps eliminate toxic elements from the body, including toxic parasites.
The requirements on pineapple importation from Costa Rica into the USA are quite
minimal (FAVIR, n.d.). According to the United States Department of Agriculture (USDA)

website, there are two import requirements that must be fulfilled. The first is an Import Permit.
An Import Permit will be obtained for Pineapple Express by registering/applying online for an ePermit (FAVIR, n.d.). The type of permit we will need specifically is a Plants and Plants
Product permit (FAVIR, n.d). Our company has registered for this e-Permit on the USDA
APHIS website. Fortunately for our company, we will not have to pay an additional duty, and or
tax, as there are no taxes/duties on importing products up to $800 (FAVIR, n.d.). A $300 license
is required in order to legally sell fruits in the USA too, and our company has obtained, and filled
out all of the necessary forms to obtain said license.
Market Analysis Summary
While Pineapple Expresses quality products provide many health benefits, health
benefits are not a priority for all consumers. For this reason, we have used different factors, such
as our location, time of year in business, and our product, in order to identify our most significant
target market. The best target market we have identified for our product are college students
(Worcester area), and more specifically, any vegans, vegetarians, dieters, or just healthy eaters at
these colleges.
Taking into account the dissatisfaction towards Sodexo at Nichols College, as well as
many other near-by colleges in Worcester, MA, Pineapple Expresses pineapples will be a very
healthy and cost-efficient alternative to these students. However, convenience is extremely
important when selling to college students, as busy schedules and heavy work-loads can cause a
lack of interest in food, more specifically tropical-fruit. Members of our company surveyed
students at Nichols College in order to obtain further information about Pineapple Express
future consumers. Of 20 students surveyed, 14 students voted extremely often when asked how
often they are hungry when the dining halls are closed, and 6 students voted very often. The

other three choices, often, not often, and never, accumulated zero votes. This provides
evidence that the consumers in our target market are all either hungry either extremely often, or
very often, when food is not easily accessible. Pineapple express plans to solve this problem by
ensuring our fresh pineapples are available at hours Nichols dining hall is closed. On the same
survey of 20 students, the surveyed were asked to rate the quality of their dining services fruit,
on a scale of 1-3 (1=worst, 3=best). 10 students voted 1, 9 students surveyed 2, and 1 student
surveyed voted 3. This provides evidence that college dining halls, specifically at Nichols, are
not providing students with quality food products. Pineapple express plans to solve this problem
by offering college students the highest quality Pineapple products from the pineapple markets
leading exporter.
Strategy & Implementation Summary
Our company plans to put significant time and effort into marketing. Busy
schedules and heavy work-loads can cause students to lack ambition in terms of venturing out to
try new things, so Pineapple Express will be marketing in a variety of forms. First,
colorful/attention-grabbing flyers and posters will be posted throughout all of Nichols Colleges
dormitories, dining halls, and academic buildings. In addition, our company will be sending out
another survey via email to Nichols students, in order to achieve a better understanding of when
students would be most likely to want our healthy snack. This survey will also help us
understand where the most convenient location on campus would be for our stand. This survey
will provide another benefit to our company as well, as it will put the idea of fresh pineapples
into the consideration of our target market. Considering the benefit of using technology to
communicate with consumers, Pineapple Express will also soon be present on social media. By
May of 2016, Pineapple Express will have a Twitter account, a Facebook Account, and an

Instagram account, not only to provide viewers with company information, but also to be more
proactive towards understanding our customers requests.
Due to Pineapple Express small scale plans for the first stages of our operation, most
business activity will take place at the home of co-founder Mike Dumass house in Dudley, Ma.
By doing this, our company will avoid paying excess expenses on rent, and instead use those
funds to further advantage our business. Company leaders have set a goal to achieve enough
profitability after the first 6 months in operation to rent a commercial place and put our fresh
pineapples on shelves in a store. Until then, pineapples will be sold to customers at stands set up
on college campuses.
Starting with Nichols College, Pineapple Express plans to be present on college
campuses throughout the area of Worcester in MA. This includes colleges such as Becker
College, Worcester State University, Assumption College, and more. With allowance from said
colleges, our company will open an eye-catching fruit stand, located on the most convenient
areas of each campus. While co-founder Jim Tereau tends to the stand for customers who want
our fresh pineapples, co-founder Mike Dumas will travel the campus, handing out flyers to
students to advertise the stand and direct potential customers in the right direction. Each month, a
Pineapple Express stand will be available until all of our months inventory is sold.
Pineapple Express plans to start business in the month of May by importing two packages
of the freshest tropical pineapples from our supplier Agricola Industrial La Lydia. Each package
will contain 7 pineapples, equaling 14 pineapples in total. At $15.00 a package, this will come to
roughly $30.00, plus shipping costs, in total for our first order. Based on the average
international price of a single pineapple, which is $3-5 at a local supermarket (Pineapple Prices,
n.d), Pineapple Express plans to sell each pineapple for $4.50.

Pro Forma Description

May 2016 is Pineapple Express grand opening. For our income projections we plan on bringing
in about $63 dollars in May, $133 dollars in June, $266 dollars in July, $532 dollars in August
and $1,120 in September. We plan on ordering 14 fresh non-chemical pineapples from Costa
Rica for the first month then double our order of fresh pineapples each month so it will be 14 in
May, 28 in June, 56 in July, 112 in August and 224 in September. Our price for our pineapples
will be $4.50 in May, $4.75 in June, $4.75 in July, $4.75 in August and $5.00 in September. We
plan on raising our price from $4.50 to $4.75 due to the fact that we will have a demand for our
high grad fresh product and then maintain the price for about three months then when our
demand is really high we bump up the price another $.25 cents to get it to $5.00.
Our goal is to be open at least three weeks during each month with our hours posted up in
the bottom of the product and service section of the business plan. Also we have to be aware that
if our product is really liked from the beginning them we will have to take in orders and have our
customers pay first then we will let them know how long it will take to get them and have use
ship the pineapples to them.
Expenses for the first month will be the highest out of the rest do to permits and taxes that
usually take a year to renew. Our cost of goods sold for May will be $30, June $60, July $120,
August $240 and September $480. The cost of goods sold is the cost of ordering our fresh nonchemical pineapples, which cost $15 for every 7 pineapples so that around $2.14 dollars for one
pineapple so we are making a profit of about $2.36 for the first month then $2.61 for the next
three months and then $2.86 for the last month. Spend around $35 dollars in May on
advertisement and getting our business name around town and try to be cost efficient with our
spending since we are a brand new company without much capital. Spend $40 in June, spend $45

in July, spend $50 in August and spend $55 in September on advertisement. Material and
supplies cost $45 in May, $50 in June, $55 in July, $60 in August and $60 in September. License
and permits are our biggest expense but only during the first month of May, which is a cost of
$300 dollars. We also have a 1% insurance on our gross sale for each month. $.63 in May for
insurance, $1.33 in June, $2.66 in July, $ 5.32 in August and $11.20 dollars in September. For
our total $375.63 for May, $86.33 for June, $97.66 for July, $110.32 for August and $371.20 for
September and in total we are spending a total of $1,041.14 for all five months. In our five
month term we are expecting to make a total profit of $1,072.86 dollars.

Works Cited
Agricola Industrial La Lydia. (2014). Product. Retrieved from Agricola Industrial La
Lydia: http://www.costaricapineapple.com/product.html
Goncalves, M. A. (2015). Doing Business In Emerging Markets. New York: Business
Expert Press.
HowMuchIsIt.org. (2016). How Much Does Pineapple Cost? Retrieved from
HowMuchIsIt: http://www.howmuchisit.org/how-much-does-pineapple-cost/
IBISWorld . (2015, July). Fruit & Vegetable Markets in the US: Market Research
Report. Retrieved from IBISWorld :
http://www.ibisworld.com/industry/default.aspx?indid=1045
Market Insider. (2013, December 12). Gloomy outlook for the world pineapple
market. Retrieved from International Trade Center:
http://www.intracen.org/gloomy-outlook-for-the-world-pineapple-market/
Ruibal, L. (2016, Feb 18). Canned pineapple: another rough year for buyers.
Retrieved from Food News: https://www.agranet.com/agra/foodnews/canned/canned-pineapple-another-rough-year-forbuyers-507095.htm
USDA. (2016). Market News . Retrieved from Agricultural Market News :
https://www.marketnews.usda.gov/mnp/fv-report-top-filters?locName
USDA APHIS. (2016, April 5). Fruits and Vegetables Import Requirements . Retrieved
from United States Department of Agriculture:
https://epermits.aphis.usda.gov/manual/index.cfm?
CFID=1673575&CFTOKEN=85c22e6b47e7932-22319B34-9D4E-7CBBC8674E7726EC4578&ACTION=pubHome