Edible Cookie Cup

Business Proposal
“The Eat When You Drink Cup”

Jhunjhun tripathy, Kamlesh Ku. Das

MBA 1st year, MICM Bhubaneswar
What We’ll Cover Today
 Tea business in India
 Market trend
 Current product
 Environment Hazard
 Tea consumption rate
 Solution
 Why customers will appreciate?
 Science
 Target Customers
 Sales and marketing needs
 Feedback
 Financial Aspects
 Expansion
 Questionnaire
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The Love of tea..
% of types of Tea drinking Cups used

 The figure 8.03%

22.09%
India consumes around 11,84,800 tonnes, of tea in a day. 43.17%

26.71%

Plastic Ceramic
Glass Paper

 The Threat
 Around 43% people drink tea in Plastic cups in India.
 75% of those people litter.

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Trend of tea consumption rate:

Tea consumption rate

4000 3750
3500
3000
3000
2500
2500

2000 1900

1500

1000

500

0
1980 1990 2000 2010
Cosumption in Tonnes Linear (Cosumption in Tonnes)

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Market trend:

 Each decade shows a growth of approximately 25% in the numbers of Tea/Coffee

Drinkers. (Considering data from 1970 till date)

 Around 40% consume tea/coffee on the go.

 75% of the consumers have tea/coffee in non-biodegradable cups.

 90% of them piles up to be a litter.

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Current Products Review
Current Products that are used to serve Tea/Coffee in India:

 Bio-degradable  Non-biodegradable
 Hard Paper Cups  Plastic Cups
 Earthen cups  Materials not plastic/
Semi Plastic

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Environment Hazard that lies here..

 Non-biodegradable are hazardous:

 An estimate shows that around 49% litter is due to fast food and beverage trash.

 Clogging, Toxins release.

 Toxins release at high temperatures.

 High re-cycle costs.

 A large portion of untouched trash.

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The solution ??
 An innovative product that takes Hot beverage drinking to a whole new level.

 Rich taste, richer experience.

 100% safe and healthy.

 100% biodegradable.

 A product that reduces the Hazard levels to an absolute 0.

 Helps in creating 0 litter free zones.

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Introducing “Edible Cookie Cup”
ECC

A piece of innovation in every cup

1. Made from fully edible materials.

2. 100% bio-degradable.
3. Light weight.
4. Heat insulated due to usage of
sugarcane fibres.
5. A secret provision for taste
customization.

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Why customers will love it?
 No more searching for dustbins.

 Reduces the litter at public places to 40%.

 ECC will be easy going for the diabetics.

 Provision for artificial sugar substitute in the product line that comes in a for
slightly higher price but is affordable.

 Can be used with Tea, Coffee, Hot Chocolate.

 Saves money on that Extra cookie!

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The science behind.
 A watertight, edible dehydrated food sheet.

 It is a folded sheet of edible dehydrated food.

 The dehydrated content is then mixed with an edible glue that helps to bind the

sheet together.

 The Glue is resistant to heat.

 The cup shall have an extra layer of flavoured film for vanilla, chocolate and so on.

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Target customers and locations

 Office-goers and travellers.

 Local tea vendors.

 Railway stations.

 Airports

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Sales and Marketing Needs

 Proper distribution Channels.

 Planned Advertisement.

 Leverage database information (sales numbers, customer locations, etc.)

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Advertising
 Focus on appeal.

 Launching a Plastic Cup cleanliness drive.

 Tie ups with local FM radio and TV channels.

 Tie-ups with tea vendors and popular Tea/Coffee joints.

 Setting up of bio-degradable dustbins labelled Go-Green.

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Customer Feedback.

 Setting up of independent helplines for quality reporting.

 ECC with engraved Toll free no. to be introduced.

 Feedback Forms, followed by discounts, will be offered to Tea Vendors.

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Financial Aspects

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START UP INVESTMENT
PARTICULARS AMOUNT IN RS.

FIXED ASSET DESCRIPTION :

Plant 2,50,000
Machinery 20,00,000
Transportation 55,000
Office Equipment 38,000
Furniture 22,000
START UP EXPENSES
Legal expense 1, 35, 000
Marketing 5,50,000
License & permits 1, 60, 000
Beginning Inventory 35, 000

Total Fixed Assets and Start Up Expenses 32,45,000

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Funding:

Sources of fund
Own Capital

Bank Loan

Other Funds
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SOURCES OF FUNDS
Particulars Amount In Rs.
Owners contribution 5,00,000
Bank Loan 25,00,000
Borrowed fund 2,45,000

INTEREST TO BE PAID:
To BANKS @12% annually.
To Borrowed funds @ 6% rate
Contribution to Capital at a ratio of 1:1

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 Fixed
Asset
Investmen
Plant & t in
Machinery working
capital
Investment
to start
the
production

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Working Capital Cycle

Cash

Raw
sales materials

Finished Work in
goods progress
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UNIT SELLING PRICE ANALYSIS

PARTICULARS AMOUNT In Rs.

A. Selling Price 7.00
Less:
Direct Cost 3.20
Materials 0.75
Workers 1.10
Factory Overhead: 0.35
Administrative Overhead 0.25
Selling & Distribution Overhead 0.45
B. Total Cost Per Unit 6.10
C. Unit Gross Profit 0.90
D. Gross Profit % 12.85

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QUATERLY INCOME STATEMENT

PARTICULARS AMOUNT In Rs.

A. Sales 11,27,000
Less: Variable Cost 7,17,000
B. Contribution 4,10,000
Less: Fixed Costs 1,80,000
C. OPERATING PROFIT 2,30,000
Less: Interest 30,000
D. Profit Before Tax 2,00,000
Less: Tax @ 35% 70,000
E. Profit After Tax 1,30,000

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Sales Per Quarter
1st Quarter
Expected Sales 25,000 Units
Revenue generated Rs. 1,75,000
2nd Quarter
Expected Sales 63,000 Units
Revenue Generated Rs. 4,41,000
3rd Quarter
Expected Sales 1,02,000 Units
Revenue Generated 7,14,000
4th Quarter
Expected Sales 1,61,000
Revenue Generated Rs. 11,27,000
Total Revenue For 1st Year Rs. 24, 57, 000
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Sales projection

Future sales expectation

12 6,000,000
5,443,075

10 5,000,000
4,461,537

8 3,656,998 4,000,000
2,997,540
6 3,000,000
2,457,000

4 2,000,000

2 1,000,000

0 0
2015 2016 2017 2018 2019
Sales

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Expansion Strategy

 Strategy needed for expansion in 5 years:

 Introduction of new product lines in the market targeting the various customer
groups.
 Tie-up with players like CCD, NESCAFE and IRCTC for the promotional purposes.

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Questions and Answers

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Godspeed 

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