Beruflich Dokumente
Kultur Dokumente
Innovation CIA
B Plan
Shilpa Susan
Philip
Tahavar Khan
This business plan prepared by us enabled us to
secure
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Contents
1. About Company
2. Organization Structure
4. About Product
5. Market Research
6. STP Analysis
7. Distribution Channels
8. SWOT Analysis
16. References
17. Appendix
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SUBO pvt. Ltd. co.
SAVE LIFE
SAVE ENVIRONMENT
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SAVE EARTH
To provide employment
ORGANISATION STRUCTURE
We believe that flexible response will work out by sharing all of the
information over the divisions & sections, transforming information into
intelligence. We will go for Vertical Organization.
HEAD
OFFICE
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SALES ACCOUNTS ADMINISTRA
DEPT. DEPTT. TIVE DEPTT.
ENVIRONME
SALES
R&D NTAL HR
ADMIN
DIVISION BUSINESS DIVISION
DIVISION
DIV.
OPERATI
RESEARCH & ONS
MRKTING DIVISION
CENTRE
Research & Marketing Centre: This is a division specialized in research
and marketing with the core product.
The management of SUBO Pvt Ltd. Co. consists of Christ University as our
main partner. It supports a unique programme called Centre for Social Action
(CSA) for the sensitization of students to social issues and for community
development. Also it has the R&D department. Christ University is our Long
Term Partner. [App.1]
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Our other partner is Vikram Logistics and Maritime Service Pvt. which is a
supply chain logistics company with a very strong presence in South India
.VLMS has excellent national and international connectivity for local and
global logistics. It will be our Distribution partner with the contract of 2 years.
[App.2]
Our main client is Bisleri Mineral Water Company, which has 60% market
share in packaged drinking water in India. They will use our bottles for selling
their water to the market for bringing revolution in package drinking water
and hence supporting our Eco -Mission. [App.4]
Following the rules of the Company Act of 1956, we will register our
company.
The first step is to get the approval of the name SUBO Pvt. Ltd. Co. by the
Registrar of Companies (ROC) in the State/Union Territory in which the
company will maintain its Registered Office.
Submitting all the documents, fees submission & tax registration, our
company will be following all the guidelines stated under Company Ac, 1956.
the PRODUCT
Recyclable
Non-toxic
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Rejuvenates soil on decomposing
Only extracted from non-food resources such as fast growing trees, green
grass & degradable biomass & food waste.
Completely eco-friendly
Economic
INGREDIENTS:
Food waste /Grass/ Biomass/ fast growing Trees
LIGNOCELLULOSIC BIOMASS
BENEFITS:
1. Doesn’t not create Pollution
3. Need not use food crops to produce plastic .Hence food shortage can
be reduced
MARKET RESEARCH
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We conducted a pilot study before to understand the feasibility of our new
product in the Bangalore market. For this we chose Christ University for our
Survey. This is because Christ University is the home of 10,000 students with
varied background from different part of India and other parts of the world.
For the study we went for Survey technique using Questionnaire (App.5).
Convenience Non Probabilistic Sampling Technique is used for this pilot
study. We got 315 responses.
75% of people buy packaged water bottles often and very often (46%+
29%)
47% buy Bisleri. Hence Bisleri is popular among people
94% believe that organic plastic should be promoted
87% want that reputed bottle companies go for eco friendly bottles
60% are satisfied with current cost
67% are loyal to their brands
Only 16% are Highly Satisfied with the quality of mineral bottles
A staggering percent of 95% are aware of eco friendly products and 97%
want such products to be promoted more
95% haven’t heard of sugar based polymer
About 76% want such bottles to be manufactured
30-50 is the ranged most preferred by people (57%)
The study suffers all the errors of the sampling. It is used for reference to
support our B- Plan not to consider it as final.
STP ANALYSIS
Mass marketing: We will go for Mass Marketing by producing one type of product for all
our customers & engage in mass distribution and mass promotion. This will create the largest
potential market, which leads to the lowest costs, which in turn can lead to lower prices or higher
margins.
SEGMENTATION
Geographic: Assuming the variations in consumer preferences & purchase habits across
different regions and across different states in these countries.
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Region: Northern & Southern regions of India and some regions in west India.
City: Metro cities Bangalore, Mumbai, Delhi & Chennai, cities with population over 1 million,
cities with most reputed colleges & with more number of young professionals like Hyderabad.
Demographic: Demographic variables are associated with consumer needs and wants &
are easy to measure. We need to define the demographic characteristics in order to estimate
the size of the market & the media we should use to reach it efficiently.
Age: Teenagers & youngsters of age up-to 25 & professionals of age upto 35.
Income: Middle (Rs. 80,001-120,000 p.a.), upper middle (Rs. 120,001-160,000 p.a.) & high
(above Rs. 160,001 p.a.).
Occasions: During school, college or office durations & while travelling by train, car or bus, etc.
The consumption of water & cold drinks increases during special occasions or events.
Attitude towards product: Enthusiastic & positive (based on responses received from various
people/students on mentioning the product).
Market Targeting
After evaluating different market segments, we now look for:
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The segment’s attractiveness
Product Specialization: Firstly we will go for producing single type of bottles for all
markets. Here we have to basically emphasis on our eco-friendly feature of
our bottle & considering large market of water bottles.
It is seen that most of the universities & institutions are organizing camps, processions, programs
etc for spreading awareness towards Global Warming. We have to focus on such college students
who are particularly concerned & aware and are actually active towards protecting environment.
We should first target such students who can then publicize our product as a step towards
reducing harm to nature & cutting on pollution.
M1 M2 M3
P1
P2
P3
Market Specialization: After 8 months, we will enter different markets of water bottles. We will
start covering areas around Bangalore & next destination of SU-BO is Mumbai.
If we could successfully grow in new markets, then we will expand to other metros as well.
M1 M2 M3
P1
P2
P3
Product Differentiation: After one year, we will start producing different types of products, i.e.
different bottles for different markets. Bisleri will be our partner for 5 years. So after successful
completion of one year, we will produce bottles of different shapes & sizes and enter into market
of Baby Care Products.
M1 M2 M3
P1
P2
P3
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POSITIONING:
Firstly we have to understand to which class of society we will be catering, i.e., our target
population. We have realized that school & college students & young professionals of middle,
upper middle & high class from urban society are our regular & potential customers.
Who am I? What am I?
Benefit related Quality: No harmful ejections in the environment & no hazardous effects on the
users, i.e. completely eco-friendly.
Demographic fit: Our product is for modern trendy & educated generation which is equally
concerned about ecological imbalances and is active & enthusiastic towards saving Mother
Nature.
Socioeconomic Classification (SEC): Our product will be serving A1, A2, B1 & B2 classes of
society, people who are literate, studying or employed & have the buying capacity.
Distribution channels
Being a new entrant in the market, we will follow Selective Distribution for our original bottles
and Intense Distribution using Bisleri.
Information
Promotion
Physical distribution
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Contact
Channels:
Manufacturer: The manufacturing of the sugar bottles will be done at our production plant in
Bangalore.
• The retail distributors & dealers of Bisleri Mineral Water Bottles which supply water bottles
to:
• The mom & pop shops at railway stations, bus stands & airports.
• The retail stores & shops which sell plastic water bottles & household necessities in the
localities.
o All members cooperate to attain overall channel goals and satisfy the target
market.
SWOT ANALYSIS
Analysis of strengths & weaknesses is analyzing the internal factors & resources or capabilities
at hand.
Analysis of opportunities & threats is analyzing the external market conditions and then deciding
how to go about facing it.
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Strengths weaknesses
• Does not contain harmful chemicals. • Marketing might be expensive.
• Bio-degradable in 4 months. • People are used to using plastic bottles.
• Awareness towards Global Warming • It is difficult to change customer
due to Copenhagen Summit. psychology.
• It is cost-effective too. • Peer pressure/Influence groups.
• It contains natural organic ingredients. • Market penetration might be difficult.
• Value for money.
• Serving water is hospitality in India.
Opportunities threats
• Awareness among people towards eco- • It might take some time to be adopted
friendly products. by customers.
• Emphasis by various organizations on • Market size may be small.
using organic bio-degradable products.
• Consumption & use of water bottles by • Slow growth of the bottle market in
consumers in large number. India, just 5-10 %.
• Bottle Industry grows at 20% per year. • Black market & fake good hamper sales
in India.
• Low cost of production.
To penetrate the Bottle market in a better way, we will adjust the Marketing Mix:
No environmental pollution
Price: Providing the customers value for money by keeping just the right price they would wish
to pay for a bio-degradable water bottle.
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Place: We will find outlets, access to which is easy to our customers & they will easily come
across our product. As our first aim is to promote awareness about our product, we will reach
retail outlets at most happening stores which serve to high number of customers including
college students & young professionals.
Promotion: By using just the right means of promotion, we have to reach our target customer
base. The promotion measures to be used are stated under Branding & Promotion.
PRICING STRATEGY
Price is not just a number on a tag. The price needs to be exactly what the
customers will pay for our product, for a Bottle which is Eco friendly. We
need to select an appropriate method for calculation of price of our product.
Now we want to earn 9% markup on sales. As our objective is not just profit
motive, we are not keeping a high markup.
BRANDING
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BRANDING is endowing products & services with the power of brand. It is all about:
Joint Advertising with Bisleri Mineral Water Co.: We will ask them to print the name of our
company on their label just to spread awareness about our bottles & creating brand name for us.
To create brand image of our product, we need to approach renowned universities to support our
“Eco-Mission”.
We will ask their students to promote awareness about hazardous effects of non-bio-degradable
products & encourage people to switch to more eco-friendly products.
Opinion Leaders: This trend is common in colleges today that some opinion leaders have the
ability to influence others to do anything. So we will ask them to use our product & then advise
others also to use these eco-friendly bottles & protect nature.
Peer Pressure/ Influence Groups: We have stated this as a weakness. Some of the students/
youngsters might hesitate to use organic water bottles because of the peer pressure of not using
“specific brand” product or due to fear of mockery at using a low cost deodorant bottles instead
of expensive so-called status symbol water bottles & mineral water bottles.
Thus we have to influence the whole group or encourage people to think about nature & not just
status. Moreover, we can ask them to use eco-friendly products & also refer their family
members & friends to use too.
“When the whole world is concerned about Global Warming, why NOT we initiate & take a
step?”
Promotion Measures:
We will be ensuring our customers that we are not only providing them healthier source for
drinking water, but also cleaning the environment by asking Municipality Corporation for
collecting & returning the used bottles.
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We will organize other Events too in collaborations with some reputed institutions or
corporate or NGOs like GO GREEN Campaigns, to provide visibility to our product. Also
we can participate in other institutions’ events asking for co-operation by providing a stall
for spreading awareness about our product.
We will go for Print ads in most circulated news papers like Times of India, DNA etc. &
pharmaceutical or some other related magazines like Express Pharma etc.
We will for Viral Marketing such as pop ups, internet ads etc.
• Press Relations: We will contact editors of The Hindu & The Times of India,
so we will ask them to write articles about our product & spread awareness
promoting people to buy our eco-friendly product.
• Corporate Communications.
SALES STRATEGY
The Bottled Water Industry in India is estimated at about 1000 crores and is growing at 40% currently .By
2010, it will reach 4000-5000 crores with 33% market for natural mineral water .[ Ref .2]
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A discussion with the retailers & pharmacies to influence them to promote
our product when a customer asks for a Bottle enlisting its merits in the way
customer would like to hear.
FINANCIAL PLANNING
Local demand for plastic bottles in India is growing by 5%. The users for the plastic bottles are
also diversified. The statistics as per 1998-99 Market : 16,500 tonnes
User Segments
The demand for the plastic bottles has seen significant growth over years.
Industry Demand
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Market demand (1998- 99) for Plastic bottles- 16, 500 tonnes
Industry growing at the rate of 15%
Management
Number of employees will be charged depending upon the changing demand in the
market and the need of the organization.
Fixed Cost
The fixed cost is expected to be 50,50,000 Rs. The details are as mentioned below
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START EXPENSE INR
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Sales 100% capacity
Profit Sharing(First 2 years) 25% : Owner
75%:Loan
Repayment
The plant will be operated in the first year at 70% capacity and as the expertise develops the
100% capacity will be attained by end of three years.
COST SHEET
PARTICULARS O
VALUE BISLERI RIGINAL
Salary 339000 2.040278 2.092593
office expenses 50000 0.300926 0.308642
Interest 50000 0.300926 0.308642
distribution (Bisleri) 80000 0.5 -
Rent 90000 0.541667 0.555556
raw material 50000 0.300926 0.308642
Maintenance 10000 0.060185 0.061728
Marketing 150000 0.9375 21
Distribution 20000 - 3.333333
Packaging 100000 - 16.66667
Total 939000 4.982407 44.63581
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BREAKEVEN ANALYSIS (App.6)
PARTICULARS VALUE
Capacity per day 5300 bottles
Production per year (original) 300bottles
Production per day @ 70% (original) 200
Production per day (to bisleri) 6000
Increased Production of bottle (to bisleri) 5600
Sale price of original bottle Rs.49
Sale price of Bisleri Rs 10
Production capacity growth rate 5%
Sales 100% capacity 3 years
Profit Sharing(First 2 years) 25% : Owner
75%:Loan
Repayment
Production of bottles to supply Bisleri will be increased to 5% per quarter. The above table
shows the production capacity for the next quarter.
Profit – 2,15,000
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Future plans
• Entering market of water bottles in 3 world countries like Africa and Latin America
• Product Variants- Variants of Bottles, Cups, Spoons, Containers, Bags, Baby Milk
Bottles etc.
EXIT Strategy
References
1. http://www.fnbnews.com/article/print.asp?articleid=22233
2. http://www.articlealley.com/article_882075_15.html
3. http://www.bisleri.com/home.html
4. http://www.scribd.com/doc/19875991/Bisleri-International-Ltd
5. http://www.vikramlogistics.com/
6. http://csachristuniversity.in/
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7. http://www.fnbnews.com/article/print.asp?articleid=22233
Appendix
1. CENTRE FOR SOCIAL ACTION, CHRIST UNIVERSITY
Centre for Social Action (CSA) is a unique programme implemented at Christ University,
Bangalore for the sensitization of students to social issues and for community development.
It is a students’ movement for a humane and just society with child as the focus. It was set
up in 1999 by the management, faculty and students of the University, as an offshoot of the
National Service Scheme. It was initiated with the intention of enabling the student
community to imbibe the values of social responsibility, which is one of the core values of
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the University. By adopting education as a tool for this kind of holistic development of the
student community, CSA facilitates development of marginalized children and communities.
CSA coordinates social sensitization programs for students by involving them in child
centered community development projects that it undertakes for marginalized
communities. The groups that CSA focuses its programmes on are children, women, youth
and students in urban slums, rural and tribal villages and educational institutions.
Through the process of involving students in its development projects, CSA aims to make
them aware of the social realities around them as well as give them an idea of how they can
contribute towards the upliftment of marginalized sections. By empowering students in this
way, CSA intends to create a community of students who work actively for the society. In
creating an empathetic attitude among students, it also helps in bringing the student
community closer to the world outside the University, equipping young minds with the right
mindset toward the society.
With the many socio-economic issues that the country faces today, CSA believes in the
power of the youth in bringing about a positive change. This, too, is one of the driving forces
behind the establishment of the centre, and remains the motivation for its active
participation in various developmental projects and social sensitization programs.
CSA is a student based organisation. One of our student activities is Vikas, a programme
through which students are exposed to various social issues through discussions,
interactions with stakeholders and visits to NGOs. CSA has a street theatre team,
named Drishti, which performs in various public places to raise awareness on selected social
issues. Volunteers belonging to Activity Centre, another team, facilitate the holistic
development of children from a nearby urban slum, which is a project area of CSA.
The Samveditha team takes sessions in other schools, colleges, and organisations, to
sensitize them on various pressing issues which plague our society. Yet another group is
the Publications Team which brings out magazines, newsletters, and various other printed
material, while also maintaining the blog and website. A discussion forum called Chatting
Over Coffee meets every week to take up issues and have thought provoking talks on them.
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Apart from these activities, students play an active role in organising several awareness
campaigns, conferences, seminars, workshops, fests etc. throughout the year. CSA also has a
cultural exchange programme with Sund Folk College, Norway.
5.Research Methodology
This survey is done to understand the feasibility of the SUBO idea among package drinking
customers. We have particularly taken sample from Christ University as it is a home of 10,000
Students from varied background all around the world.
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This survey is a part of business plan feasibility analysis done by students of MBA-
IB, Christ University Institute of Management, Bangalore. It would take less than
20 minutes for you to fill up. We assure you that the information provided by you
will be completely confidential and will be used for academic purpose only. The
technique used is Convenience method of probabilistic sampling technique .
Questionnaire
A: Personal Details
1. Name
Female
2. Gender
Male
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3. Contact No (mobile)
Single
5. Marital Status
Married
o Yes
6. Are you a resident of Bangalore
o No
B: Individual Assessment
o Very often
1. How often do you buy bottled o Often
water? o Rarely
o Hardly ever
o Bisleri
o Aquafina
2. Which brand of bottled water do
o Bailey
you often buy?
o Kingfisher
o Others
3. Organic plastic is one way to
Promote eco-friendly products. o Yes
o NO
Do you agree to this? o Maybe
o Very satisfied
a. Cost o Satisfied
o Dissatisfied
o Very dissatisfied
b. Temperature resistance of the o Very satisfied
product. o Satisfied
o Dissatisfied
o Very dissatisfied
c. Loyalty to the brand o Yes
o No
o Can’t say
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d. Accessibility of product to o Easily accessible
customer? o Good accessibility
o Difficulty to access.
o Hard to find
o Very satisfied
e. Quality of the product o Satisfied
o Dissatisfied
o Very dissatisfied
o Very satisfied
f. Other features that provide value o Satisfied
added benefit? o Dissatisfied
o Very dissatisfied
6. Are you aware of the benefits of o Yes
using eco friendly products? o No
o Strongly agree
7. Do you think more and more eco o Agree
friendly products needs to be o Disagree
promoted? o Strongly disagree
Thank you very much for your time and patience. It means a lot to us.
Gracias.
ANALYSIS
Analysis of the responses received by 315 respondents from Christ University
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2. Which brand of bottled water do you often buy?
a. Cost
b. Temperature
c. Brand Loyal
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d. Accessibility
e. Quality
f. Other features
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6. Are you aware about eco friendly products benefits?
9. Such polymers when used for making bottles are non toxic, faster
degradable and eco friendly .Will you prefer such bottles?
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10.For what price range will you prefer eco friendly bottles having such
added values?
Interpretation
We received 315 responses for this survey made. After gathering and analyzing
the data , the results obtained are as follows
75% of people buy packaged water bottles often and very often (46%+
29%)
47% buy Bisleri. Hence Bisleri is popular among people
94% believe that organic plastic should be promoted
87% want that reputed bottle companies go for eco friendly bottles
60% are satisfied with current cost
67% are loyal to their brands
Only 16% are Highly Satisfied with the quality of mineral bottles
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A staggering percent of 95% are aware of eco friendly products and 97%
want such products to be promoted more
95% haven’t heard of sugar based polymer
About 76% want such bottles to be manufactured
30-50 is the ranged most preferred by people (57%)
Note of Caution: This survey will have all the errors of sampling
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