Business Plan

New Majic Food Industries

BRAMMA

Prepared by Mr. Sumeesh V.K Consultant Bramma Learning solutions

Verified By Mr. Deepesh M Asst. Manger-Consultant Bramma Learning solutions

Approved By Mr. Ranjith A R Head-Consulting Bramma Learning solutions

Submitted to, Mr. Muhammad Saleem New Majic Food Industries Adoor, Pathanamthitta

Business plan for New Majic Food Industries

1.0 Executive Summary

New Majic Food Industries is a Kerala based Snack and Chips manufacturing company located at Adoor, Pathanamtitta district. Owned by Mrs. Ghirija kumary and managed by Mr. Saleem C Muhammed. Majic Taste is aiming to hit the market with its high quality chips and snacks. The quality of the products will be the highlighting feature in marketing. A semi-automatic technology with latest machineries is used for production of snacks. Majic Taste will be available in all the leading supermarkets and retail outlets in Kerala. Majic Taste is planning to develop its sales to all over Kerala. Initial marketing is planned through supermarkets and retail outlets. The product range of Majic Taste starts from Banana chips, Cassava chips, Kerala mixture and basic traditional snack items. There are about 33 varieties of snacks and chips in the product range. They are also planning to export the snacks to some gulf countries.

1.1

Vision and Mission

Vision: We aspire to provide health guaranteed snacks and chips to people who love to enjoy taste. We stands for quality and believe in our motto better quality for better taste We preserve our traditional Kerala taste with the use of technology and expertise

Mission Our mission is to help Keralites to enjoy their traditional taste that ensure quality and trust with our service and coverage Our mission is to spread the Majic of traditional taste to Keralites across the globe by exporting to overseas Our mission is to establish as a customer choice brand among snacks category within next one year Our mission is to help the people to have fried snacks at tea time with no worry on health aspects

1.2

Objectives

The main objectives of Majic Taste is as follows, To establish Majic Taste in Kerala as the leading brand in snack foods To make the brand available in all retail outlets in Kerala To make a good distribution network for the brand To make Majic Taste a leading Brand in Middle east and other countries Expansion of the business in next two years To increase the export volume of the company

2.0

Company Summary
2.1 Company Ownership New Majic Food Industries is a sole proprietary firm under the ownership of Proprietor Mrs. Ghirija kumary and Managed by Mr. Muhammed Saleem. The company is located at Adoor in Pathanamtitta district of Kerala. The company owns the trademark of Majic Taste for their entire products. Yummifying you will be the slogan of the brand. New Majic Food Industries owns a website www.majictaste.com. 2.2 Initial requirements of New Majic Industries 1. Company Logo & Product Tagline 2. Company Letter Head 3. Company Website 4. Packaging Design 5. Bar-coding Registration 6. SFA Registration Company Logo & Product Tagline Logo:

Brand Name: Majic Taste Tagline : Yummifing You

Company Letter Head

New Majic Food Industries, KINFRA Food Processing Park, Elamannoor.P.O, Adoor, Pathanamthitta, Kerala Phone: 0 9387712177 Email: info@majictaste.com, Web: www.majictaste.com

Company Website Website Name: www.majictaste. Packaging Design Packaging design is to be done with the help of a designer. Company logo and brand story needs to be included. Different colours should be used for variant items (10 items). Export packaging norms needs to be included in the packaging cover.

Bar-coding Registration
Bar coding Registration Company: GS1 India
GS1 Company Prefix Number Valid till : 8908002243 : 30th September 2012

Registration procedures for allocation of GS1 Company prefix number

The following documents are required to be submitted while applying for allocation of GS1 Company prefix number: GS1 India registration form duly filled and signed along with the product classification sheet duly encircling / highlighting the product categories being manufactured / supplied. Please note all fields in the registration form are mandatory. If any field is not applicable, please write N/A. Payment of fees by DD/pay order for the requisite amount in favor of GS1 India, payable at Delhi. or for details of electronic transfer of funds to GS1 India, Vijaya Bank, Bhikaji Cama Place Branch Current Account No. 602000301000218 In the name of GS1 India NEFT Code: VIJB 0006020 MICR Code: 110029018 Corporation Bank, Bhikaji Cama Place Branch Current Account No. CBCA01000783 In the name of GS1 India NEFT Code: CORP 0000373 MICR Code: 110017008

Request letter from Applicant Company on its letterhead for allocation of GS1 company prefix number. PAN card copy of Proprietor - in case of Proprietorship firm and PAN card copy of the applicant company in other cases.

Proof of status of Applicant Company (for Proprietorship firm VAT Registration certificate; for Partnership firm VAT Registration certificate / Partnership deed; for Pvt. Ltd / Public Ltd etc ROC / ROS / MOA / VAT Registration certificate).

Snacks Food Association Registration SFA Registration can be availed only through online request registration. They will reply to the request and will send the application form for membership Registration Fee : 875$ Contact person Christopher Clarke, Vice President, SFA Contact Id: CClark@sfa.org

3.0

Products and services

All the varieties of Kerala traditional snacks and chips are there in the product list. 3.1 Product List Banana Chips Tapioca Chips Tapioca Chips Hot Sweet Mixture Kerala Mixture Plain Kerala Mixture Hot Corn Flake Mixture Bombay Mixture Sweet Seva Pakkavada

3.2

Competitive Edge

3T Majic from Majic Taste

3 T MAJIC
1. 2. 3.

Tasty Majic Traditional Majic Trusty Majic

Tasty Majic

- Taste of Tea Time Fried Snacks made from traditional recipe which you tasted long back at home. - Tasty chips made from top quality ingredients in a hygienic and state of art facility

Traditional Majic - Magic of real taste by traditional Kerala style of preparation Trusty Majic Semi automated production technology ensures human involvement who are expertised in traditional Kerala style snack preparation - People usually carry a doubt in their mind about the usage of used oil in the preparation of snacks. But Majic Taste relies on quality, so WE NEVER USE USED OIL in the preparation of snacks. We believe in our Motto better Quality for better Taste

Production plants meet all International hygienic standards All products are of Export Quality

3.3

Technology

A semi- automatised production technology is used for entire list of products. The machineries used for the production are of latest technology. Benefits of using semi-automatic technology of production

A standard quality of products can be maintained in terms of shape and size The damages / wastage can be reduced Large volume can be produced because of speedy process Fuels can be made cost effective as continuous and large scale production happens Hygienic production of products Maintenance of national and international markets Shelf life can be extended because of less hand jobs involved

4.0

Market Analysis Summary

Majic Taste will be available at, Leading supermarkets in Kerala All retail outlets selling snacks and food items Leading bakeries and food courts

The major market of the brand in Kerala is from the leading supermarkets because of the availability of potential customers.

Majic Taste is targeting middle level income group and higher level income group as the pricing pattern is bit higher than the local brands available.

4.1

Market Segmentation

During the initial phase Majic Taste is concentrating on five districts in South Kerala, considering the operational feasibility and market knowledge. Later on planning to expand the business all over Kerala through a distribution network. Targeted Market: Pattanamthitta Alapuzha Eranakulam Kollam Kottayam Majic taste is planning to export to all GCC Countries which has a high population of Keralites. Targeted Market: UAE Oman Saudi Arabia Kuwait Bahrain Qatar

5.0

Marketing and Implementation Strategy

5.1 Marketing Strategy

Majic Taste is planning to give a best wholesale rate during the initial period to the supermarkets and other retail outlets to encourage the products more. Majic Taste is planning to do bill table display to have a visibility of the products. Majic taste is also using the in-house promotional activities to attract customers

Promotional Plans during the introduction stage of brand Customer campaigning to inform the introduction of the brand Display of Danglers in a attractive design in all supermarkets and retail outlets Hoardings to be placed in major supermarkets, parks, buses, cinema halls etc Brochures or leaflets regarding details about products should be issued through bill tables of major retail outlets Utilize the premium shelves offered by the leading super markets Make a small gift available with each pack or two packs. Gifts like pens can be used. Introduce a scratch & win offer for a limited time period which make people aware of the brand. Place a scratch coupon inside packs and offer small gifts to certain coupons like caps, one pack of Majic taste etc. The vehicles used for sales can be painted with Majic Tastes Promotion Stress the health benefits of the brand in every promotional activities as customers are very much conscious now a day Product boards displayed on the trolleys can be used

Initial Promotion Campaign:

Three schemes can be introduced as initial promotional schemes. 1) BIG MAJIC Offer About the offer: In this particular offer, introduce a combo pack offer by wrapping two packs together (of different snacks) and make a discount in price. Mode of operation The offer can be operated comparing the margin per pack with volume selling. If the cost per pack is Rs 23, then the cost of combo pack will be of Rs. 40. Highlight the price advantage in the cover pack (23+23=40) .Wrapping can be done by using printed wrappers 2) MAJIC PACK Offer

About the offer: It is a surprise gift offer to customers. In this particular offer there will be one surprise number in the Majic pack and the number is awarded by a gift when the customers present it with the pack cover.

Mode of operation: Three set of surprise numbers (E.g. 111, 222, 333) are planned to include in the Majic Packs. A Majic pack contains one among the three numbers. Specific gifts are planned for each number for e.g. a cap (Majic Taste logo labeled) for 111; a pen for number 222 and Buy 2 get one free offer for number 333. Numbers can be included as a separate sticker in the packaging cover.

3) MAJIC WEEK Offer About the offer: This offer particularly aims at targeting customers who purchase in big quantity. In this particular offer, if a customer purchases 5 packs of snacks, one pack will be given free of cost. The scheme aims at building more sales volume.

Mode of Operation: Offer information can be displayed near the counter in a flex or board. Retailers can be provided with a minimum number of free packs.

5.2

Sales Strategy Sales personnels are appointed to expand the brand throughout Kerala. The main aim of Majic Taste is to create the brand loyalty of the products. Sales can be done through distributors and by route sales. During the initial phase, the company is planning to use distributors in Eranakulam, Kollam and Kottayam districts. The route sales are planned for Pathanamtitta and Alapuzha districts. Strategy to be used in route sales Identify potential routes that can be controlled directly and fix the routes in a cost effective manner Average number of outlets should be fixed in each routes with the capacity of our vans Expected sales in each route must be identified Each route should be followed up once in a week on a fixed day The route salesman should ensure the availability of products to each routes

 To make a route sales fixture with regard to vans available and continue the process Daily report collection of each route from sale executives and drivers Sales executives is advised to encourage the promotional activities done by the company Provide a good incentive plan for sales executives based on sales which will help to get more orders Follow ups from the management side to ensure the proper working of the system

Identification of routes in Pathanamtitta and Alapuzha district Majic taste will is planning to do route sales in Pathanamtitta and Alapuzha districts. The plant is located at Adoor so the route sales will be operated from Adoor. The main routes identified are Adoor Pandhalam Chenganoor Thiruvalla -Changanasseri - 42 kms Adoor Pathanamtitta Kaipatoor Ranni 33 kms Adoor- Charumoodu- Mavelikara 32 kms Adoor Kayamkulam Cheppad - Takazhi Cherthala 95 kms Adoor Thuravoor - 106 kms Adoor Punalur 36 kms

Sales using distribution network Majic Taste is planning to identify distributors in districts other than that having route sales. The distribution channel for the product may be

Manufacturer

Distributor

Retailer

Consumer

Features of a good distributor Must have a good retail network Equipped with high standard marketing personnel Need good stocking / warehousing facilities Have a credibility in payments Must be engaged in business relating to food industry Provides services for the promotion of our products Has superior knowledge about the industry

List of Major Sales points identified for Majic Taste in Pattanamthitta

More Super Market Sarothara Complex, Aji Nagar, 691523 Adoor. 9961883445 ram.brijeesh83@gmail.com P O Thomas Sons Adoor Tower, CentralAdoor, Adoor P.O,691523 9349610002 Dhanya Super Market NearKarikinethTextiles,Adoor.,691523 9446007823 dhanyasupermarket@gmail.com Saleena Shopping Centre Kulangara Building, KSRTC Road, KSRTC Junction, Adoor, Kerala +91-4734-229869
Best Bakers

Thriveni Super Market Revenue Tower, M.G Road, Adoor,691523 9495835284 J J Margin Free Super Market Opp.ParthsarathiTemple, M.CRoad, Adoor,691523 9447409592 M A R & Co Hyper Market Kottamukhal,Adoor.,691523 9645553373 hafiznishadmar@yahoo.com Thomson Bakery's & Food Court Mariyam Plaza,Parakode Road,Adoor.,691554 9645520967

Trissur Bakery

Near Parthasarathy Temple, Adoor, 691523 09947798856

Elite Bakers

Adoor.,691523 9995197134

Star Bakery

Opp Margin Free Super Market, Konni, 689691 9496947025 Universal Supermarket, Pandalam, Kerala

M C Road, Pandalam, 689501 9447079183

Aswathy Bakery Pandalam Junction, Pandalam, Pathanamthitta-689503 04682453538

List of major Sales points identified for Majic Taste in Alapuzha

Deepa Stores Address: Mannar, Alappuzha, Kerala Phone number: +91-477-2312384 Karukayil Stores Address: Mannar, Alappuzha, Kerala Phone number: +91-477-2312746 M K Stores Address: Mannar, Alappuzha, Kerala Phone number: +91-477-2312336 Pulickal Stores Address: Mannar, Alappuzha, Kerala Phone number: +91-477-2314522 Sasidharan Address: Haripad, Alappuzha, Kerala Phone number: +91-477-2412036 Sweda Stores Address: Mannar, Alappuzha, Kerala Phone number: +91-477-2314374 Vanitha Super Market Address: Haripad, Alappuzha, Kerala Phone number: +91-477-2413267 Abdul Majeed V A Address: Mannar, Alappuzha, Kerala Phone number: +91-477-2312303

Kami Stores Address: Mannar, Alappuzha, Kerala Phone number: +91-477-2314230 Kerala Stores Address: Mannar, Alappuzha, Kerala Phone number: +91-477-2314238 Meera Stores Address: Mannar, Alappuzha, Kerala Phone number: +91-477-2312319 Pushpa Department Stores Address: Mavelikkara, Alappuzha, Kerala, 680002 Phone number: 91-047-92302328 Style Stores Address: Mannar, Alappuzha, Kerala Phone number: +91-477-2312258 Unnithan Address: Haripad, Alappuzha, Kerala Phone number: +91-477-2412409 Crown Bakery Alappuzha HO , Alappuzha, C M Stores Address: Mannar, Alappuzha, Kerala Phone number: +91-477-2312649

Exporting Network Majic Taste is planning to export its products to GCC Countries. During the initial stages the products will be made available in all the leading outlets in gulf countries. Exporting will be done through a prominent exporter in Kerala.

Pricing Policy As the products are marketed as a healthy snack so the company is liable to maintain prices at par to the competitors due to superior quality. Company is planning to give better promotional rates to the retailers. This is done as a part of promotional activities for the brand. Certain points are to be taken into consideration while framing a pricing policy

How much is the cost price of the product? The cost price of the product will be depending on the purchase price of the raw materials, cost of labor, cost of promotion activities and other overhead expenses involved in production What are the marketing techniques to be used? Majic taste will need lot of promotion activities in the introduction stage. More promotion has to be done in supermarkets itself. This will be more effective and less expensive. What is the price range of competitors? The identified competitors of Majic Taste are Thalolam Rs25 / pack Dev Snacks Rs 25/Pack, Groves Rs 35, Fresh snacks Who all are the targeted customers?

Majic Taste mainly concentrates on middle and above middle level people. What will be the profit target of Majic Taste? Initially the profit will be very low as the product is in introduction stage. More promotional activities need to be done at this stage. What will be the margins to the intermediaries? Distributors and retailers will demand for more margins to place the product. But once the product hits the market they will be willing to decrease the margins.

6.0

Management Summary
Mrs. Ghirija Kumary is the proprietor of New Majic Food Industries. Mr. Saleem will be the managing the day to day activities of the firm. He will be responsible for Purchase and Production department. Mr. Saleem is having 20 years of experience in snacks and chips industry. A Chief Operations Manager is to be appointed for controlling the Marketing and Finance departments.

6.1

Personnel plan Production & Operations Head Marketing Manager Accounts & Administration Executive Production In charge Production & Packing Staffs Sales Executives Drivers

6.2

Organization Structure

Properitor

Production & Operations Head

Marketing Manager

Accounts & Administration Officer

Production Incharge

Sales Executives

Drivers

Production & Packing Staffs

Recruitment Plan for New Majic Food Industries

The recruitment and selection is the major function of the human resource department and recruitment process is the first step towards creating the competitive strength and the strategic advantage for the organizations. Recruitment process involves a systematic procedure from sourcing the candidates to arranging and conducting the interviews and requires many resources and time. A recruitment plan establishes an understanding of the job so you can hire the most qualified applicant. The plan lays out the major responsibilities of the job, identifies what is needed to perform the job, and identifies the most effective selection procedures to use. New Majic Food Industry is planning to recruit employees for its Production department, Marketing department, Accounts and Administration department. The main procedures involved in recruitment are Identifying the Vacancy This process involves the identification of vacancies in which the employees to be recruited. New Majic industries must recruit employees for the following posts. Marketing Manager (1) Accounts & Administration Officer(1) Production in charge(1) Production Staff(9) Sales Executives(3) Drivers(3) Prepare job description and person specification The jobs of each of the employees that are going to recruit must be clearly been identified and approved by the management. The job description of the staffs in New Majic is to be clearly defined.

1. Marketing Manager Marketing Manager is the key person in the company and hence he should be a suitable person with required skills. He is the person who is supposed to coordinate all the activities in the marketing department. Required Qualification and experience: Age Qualification Experience : : : Around 30 years Graduation (MBA preferred) 3+ years experience as manager in any industry

2. Accounts & Administration Officer Accounts and Administration officer is the person who is responsible for all kind of administrative works in the company. She/he will be the person who act as a accountant and perform all kind of accounting jobs. Age Qualification Experience : : : Around 25 years B Com (MBA preferred) 2+ years experience as accountant

3. Production in charge Production in charge is the person who acts as a head of the production department. He will be responsible for coordinating all the activities in the particular department. Age Experience : : Around 35 years 2+ years experience in the same field

4. Production & Packing Staffs Production & Packing staffs will be responsible for maintaining the quality of the products. They must be experienced in production of snacks. Age Experience : : Around 30 years 2+ years experience in the same field

5. Sales Executives Sales Executives are the field force of the company. They require some basic sales traits and they need to be proactive and self motivated. Age Qualification Experience 6. Drivers Drivers are responsible for maintaining route sales along with sales executives. They must have a good knowledge of each of the routes identified by the company. Age Requirement : : Around 30years Must have a valid driving license and having experience in route sale Advertising the vacancies The recruitment advertisement should be placed in leading newspaper a one week before the recruitment is going to take place. All the vacancies must be included and the requirements should be clearly specified for each of the posts. The advertisement should include the key recruiting persons contact details. The details about salary should not include in the advertisement. The venue for the interviews must be fixed at the time of giving advertisement. Planned date of advertisement : Medium : 19-10-2011 Malayala Manorama (Avasarangal) : : : Around 25 years Graduation and above 1+ years experience in sales field

 Follow up the advertisement After the advertisement the candidates will call or respond to the contact details given in the advertisement. The calls must be clearly attended and the full details regarding the candidate should be collected. Follow up in charge: Sumeesh V K

Short listing of candidates This process includes the selection of the candidates those having the essential requirements to the posts we have and who are being interviewed. All the shortlisted candidates should inform the date, day and venue of the interview. There must only be 10 or 15 candidates given appointment at a time. Inform the candidates about the credentials they need to bring at the time of interview.

Short listing date Intimating the candidates Preparing for the interview

: :

24-10-2011 24-10-2011

An interview analysis sheet should be made by the interviewer to evaluate all the candidates. The marks can be given by the interviewer. This helps in assessing each candidate and to take decisions. The key person of the company and the recruiting person must be in the panel of interview. Interview Panel 1. Mr. Saleem C Muhammad 2. Mr. Ranjith A R 3. Mr. Deepesh M 4. Mr. Sumeesh V K

 Conducting interview and Decision making Venue: The recruitment process must starts from 10 am onwards. The details of each candidate must be cross checked at the time of interview. Salary of the candidates must only been decided after the interview but a predefined structure should be there before conducting the interview. Responsible Person Mr Saleem

Offer Letter After finalizing the candidate to a post an offer letter should be given to him/her. An offer letter must contain the name of the post he is selected for. The salary the details about leave and all the HR policies regarding the employee should be clearly been defined in an offer letter. Offer letter must be prepared in two copy one for the employee and the other for HR purpose.

Action Plan for New Majic Food Industries

Sl. no 1 Activity Description Preparation of Project plan for Majic Taste Designing a logo for Majic Taste Coordinating with designer Finalizing the logo Sourcing quotation from company Making the payment Registering the website Applying for GS1 bar-coding for Majic Taste Making payments and send DD Coordinating with GS1 Availing company prefix number Finding cylinder making parties Sending quotation request to parties Finding packaging designing parties Placing orders Collect finished packing pouches from packaging Start Date End date Responsible person Deepesh

Project Plan

27-09-2011

28-09-2011

26-09-2011 26-09-2011 28-09-2011 28-09-2011 29-09-2011 29-09-2011 22-09-2011 22-09-2011 29-09-2011 29-09-2011 26-09-2011 27-09-2011 26-09-2011 08-10-2011 08-10-2011 30-09-2011 30-09-2011 29-09-2011 28-09-2011

Ranjith Deepesh Saleem Deepesh Saleem Software Firm Sumesh Saleem

Logo

Website

Bar-coding

Deepesh

Deepesh Deepesh & Saleem Saleem Saleem Saleem

Packaging

Collection of packing pouches

company Complete Business Plan with initial market study Approving the plan Recruitment Advertisement Format In Manorama Newspaper Call coordination Short listing of candidates Intimation to candidates Arranging venue for recruitment Recruitment to be done at Adoor Collecting the list of distributors Preparing brochure for distributors Fixing the margin and terms of conditions Discussion with distributors Finalizing distributors Collecting the list of Exporters Preparing brochure for Exporters Fixing the margin and terms of

03-10-2011

08-10-2011

Sumeesh Saleem

Business Plan

Preparation of Advertisement Giving Advertisement

10-10-2011

10-10-2011

Sumeesh

19-10-2011 19-10-2011 24-10-2011 24-10-2011 19-10-2011

19-10-2011 24-10-2011 24-10-2011 24-10-2011 20-10-2011

Saleem Sumeesh Sumeesh Sumeesh Saleem Saleem, Sumeesh Sumeesh Sumeesh, Saleem Sumeesh Saleem Saleem Saleem Sumeesh Sumeesh, Saleem Sumeesh Saleem

10

Advt Follow Ups

11

Venue Arrangement Recruitment

12

27-10-2011 14-10-2011 15-10-2011 17-10-2011 19-10-2011 24-10-2011 14-10-2011 15-10-2011 17-10-2011

27-10-2011 14-10-2011 18-10-2011 17-10-2011 22-10-2011 24-10-2011 14-10-2011 18-10-2011 17-10-2011

13

Finding Distributors

14

Finding Exporters

conditions 19-10-2011 Discussion with Exporters Finalizing Exporter 24-10-2011 Defining job responsibility of employees and preparing reporting formats Defining job responsibility of employees Prepare reporting formats for each employee Discussion with software companies Availing quotation Conducting demo presentation Finalizing and installing Welcoming the newly joined employees to the organization Providing job detailing to employees 12-10-2011

22-10-2011 24-10-2011 12-10-2011

Saleem Saleem Sumeesh

15

13-10-2011

13-10-2011

Sumeesh

25-10-2011 25-10-2011 01-11-2011 02-11-2011

25-10-2011 27-10-2011 01-11-2011 03-11-2011

Sumeesh Sumeesh Saleem Saleem, Sumeesh Sumeesh Deepesh, Saleem Sumeesh Deepesh, Saleem Marketing Manager Saleem, Production team Packing Staffs, Saleem Sales Executives, Drivers Sales Executives

16

Finding a good Management software

04-11-2011

04-11-2011

17

Joining of employee and job induction

04-11-2011

04-11-2011

18

Market study

Initial market study by marketing team 05-11-2011 Purchase of requires raw materials and start the production process Packing of finished goods Move into the proposed market Sell the product

10-11-2011

07-11-2011

08-11-2011

19

Raw material purchase and production start up

10-11-2011

11-11-2011 11-11-2011

20

Commercialization

21

Evaluation study

Complete evaluation study of the project

18-11-2011

18-11-2011

Sumeesh