MGN232: ENTREPRENEURSHIP COMMINCATION

AND BUSINESS DEVELPMENT

INDUSRTY SELECTED: POULTRY INDUSTRY(egg

production)

PREPARED BY:T.BALAJI GOWD

REGISTRATION NO. : 11608646
ROLL NO. :B 41
SECTION: H1612
 BUSINESS PROPOSAL

 I am planning to start a business in the outskirts of

Guntur district of Andhra . The main reason that I
chose this business because of its current demand
in the market. Egg and meat consumption in
andhra state is very high and is still dependent on
other states.
 So I hope to exploit this market and to gain
maximum profit from this business.
 The pricing is done in such a manner it can be
afforded by all income people that is low –high
and also to recover my investment of about Rs.
1152696.95 through the revenue within a year.
 INTRODUCTION

•Company Name : NATURE NEST

•Location of the company: `Guntur district , Andhra pradesh

•Tag line: fresh and healthy

State wise egg production
;
 NATURE NEST

Mission: Our mission is to provide our community and

neighbours with proven poultry and the things needed for
developing sustainable poultry farming.

Vision: Our vision is to produce nutritious eggs, generate

employment, and create wealth.

Objective: Our objective is to be the “best hygienic poultry

producer in the area” and winning the hearts and taste of
our beloved consumers and establish a brand image of the
company in the first one year.
 MAJOR PROBLEMS IN THE STATE

1. Unemployment in both rural and urban areas.

Solution: Job vacancy for both skilled and unskilled
workers in the poultry farm.

2. Decreased production of eggs in Andhra pradesh

state
Solution: get more knowledge about production of
eggs and Main focus on production and its
sales.
 EDP PROGRAM

 NABARD is an apex institution accredited with all matters

concerning policy, planning and operations in the field of
credit for agriculture and other economic activities in rural
areas.
 The major scheme launched by the NABARD for poultry
sector is the “Poultry Venture Capital Fund”
 The poultry venture capital fund scheme:
 Encourages poultry farming activity especially in non-
traditional states and provides employment opportunities
in backward areas.
 Improves productivity of unscientifically run units through
technology up gradation.
 Improves productivity and facilitates rearing of other
poultry species like quails, ducks, turkeys, which have good
potential.
 ENVIRONMENTAL ANALYSIS

P.E S.T L.E

Political: Andhra
government is very
supportive by its Social: The social
industrial policies culture of people
and other policies, is modern and
Legal Analysis
also traditional.
In both poultry
Economical: product is
Andhra pradesh is included
economically Technological Environmental
favourable for any Kerala is well Analysis :
industry considering developed in case Consideration of
its literacy rate, of its roadways, underground
annual income of railways water, proper
people etc... telecommunicatio usage of
n, airport etc.. chemicals.
 ORGANISATIONAL HIERACHY

Head(owner)

Manager(Production) Manager(Marketing)

Skilled Workers Labours Sales Office

 SEGMENTATION, TARGETING AND POSITIONING
1.SEGMENTATION

 Demographic segmentation:

 Geographic segmentation:

 Physiographic segmentation:

2. TARGETING

Our company is not targeting a particular age, sex etc of the society. In Andhra the main target markets are
Guntur,tenali, and vijaywada These are our main targets.

Our targeted segment is non-vegetarians with high and low income level in these 4 districts. The majority of the
population in Andhra are non-vegetarians and there is a wide opportunity in these markets.

The target market is within the states and those markets present in both rural and urban areas.

The business will target resorts; essentially the customers shall emanate from bed and breakfast providers, guest
houses, mine kitchens and hostels, tertiary institutions as well as small scale and emerging community stores within the
outskirts of tenalli . Additionally, the project shall strive to secure contracts to supply eggs to prominent hotels on a
regular basis.

3.POSITIONING

 Eggs: Organically raised chicken eggs rich in nutrients.

 Meat: Vegetarian fed chickens with good quality meat that meet your taste that you desire.

As this is a new company we want to position our products in the minds of the customers in such a manner that all our
products are produced naturally and nutritionally rich products.
 The 4P’s
PRODUCTS

The full chicken Egg Products Poultry manure

(Meat Products)
 Pricing
PRODUCTS PRICE(Rs)
Brown eggs 10.25 per unit
White eggs 4.5 per unit
Fresh culled chicken 150 per kg
Frozen packed broiler 200 per kg
chicken
Liver and gizzard 80 per kg
Manure\chicken 4000 per ton
droppings
We have arrived completely at this price by analysing the competitors price
And cost of production.

Product Production Product Profit Profit

cost price margin
1. Egg 1.16 4.16 3 2.586%
2. Full fresh chicken 139.616 150 10.384 7.43%
with skin
3. Frozen full chicken 170 180 10 5.83%
4. Poultry 7.897 10 2.103 26.63
dropping/Manure
 PROMOTION

ADVERTISEMENT SALES PROMOTION

•Providing small discounts

on bulk purchase of eggs
and chickens.

•‘Buy one get one free’

campaign
 PLACE

 TRANSPORT

Egg Transport Truck Cold storage van Home delivery bikes

CHANNELS OF DISTRIBUTION
 COMPETITORS ANALYSIS

 Suguna food industry is the major competitor in

the market.
 Price comparison of products
 Suguna Foods Product price:
Egg price= Rs 7.6 per egg
Frozen full chicken= Rs 225
 Nature nest product price
Egg price= Rs 4.16 per piece
Frozen Full chicken= Rs 180
Fresh full chicken=Rs 150
 They have a good brand name in the market.
 But our product is affordable by the all classes of
people.
 TECHNICAL ANALYSIS

 Location and Infrastructure

Egg
grading
Egg packing machine machine

Egg
Meat Packing Machine weighin
g
LAYOUT

a) Entrance gate
b) Reception
c) Toilets
d) Back office
e) Back office storeroom
f) Parking area
g) Slaughter house
h) Layer house
i) Sorting, Grading and packaging hous
j) Cold warehouse
k) Warehouse
l) Bore well
m) Compost pit
 FINANCIAL ANALYSIS

 Sources of funds
1. Cooperative banks and regional rural banks which are controlled
by the NABARD.

2. Friends and family member who do not take any interest mostly.
3. sri nagarjuna enterprises.
4. Agriculture finance cooperation which is wholly owned by the
Government Development Finance institution. It provides loans.
5. Andhra state Co-Operative Agriculture and Rural Development
Banks Ltd.
6. janasena federa
7. State cooperative Agriculture and Rural Development Bank.
 Cost sheet

SR. PARTICULARS EXPECTED

NO COST(Rs)
.
1. Capital Cost 432232
2. Working Capital Cost
a. For egg production 297770.95
b. For meat production 325394
c. For manure 97300
Total Production Cost 1152696.95
 S.W.0.T ANALYSIS
•The managing members
in the firm are energetic,
knowledgeable, creative
and enthusiastic.
STRENGTH
The major threat that arise
Is the threat from the buyers
And the competitors.
O •The increasing per capita
PP consumption of eggs.
•The government support for the
UR poultry industry as it considered
TU to be ‘feeding nation’
NI •Technologies such as solar
energy will be an opportunity for
TY the project, as there is a good
sufficient amount of sunlight
throughout the day.
WEAKNESS
SWOT
•Lack of trained human resource in
TH the field of poultry farming and
RE livestock disease prevention and
AT control.
S
 CONCLUSION

 Since our country is self dependent in poultry

farming business and indirectly creates more
employment. With rise in the middle class and
increased urbanisation and major population
prefer to go for eggs and chicken. Therefore
poultry industry will play a major role in the near
future.