Entreprenureship

Final project presentation

About product:
Tea that looses weight, boost mental ability
with exciting flavors

Submitted to: Prof. Talha Zubair

GROUP MEMBERS
Umair Tariq

Awais

Ali

Abdul Rehman

Suleman
Business Plan
Umair
WHAT IS FG-TAZZA CHAI

 New hot beverages “functional drink”

 Quality tea with supreme blend
 Strong and energetic antioxidant leaf
 Refreshing body with aromatic leaf
 Conations mixture blend from Kenya
 Contains caffeine “activate your brain cell”
 RAISES BODY TEMPERATURE

REDUCES FAT BY INCREASING TEMPERATURE.


STIMULATE METABOLISM.


GIVE MENTAL FOCUS.



STIMULANT PREVENTING FATIGUE



LOWER CHOLESTEROL

 PREVENTION FROM CANCER

 FG-TEA

TAZA CHAI CATAGORIE LOGO

 Local Tea Flavors

KARAK CHAI DUDH PATI CHAI GARAM CHAI

DHAMAAL CHAI SACHAL DUST CHAI MOMAL DUST CHAI

NARUNG CHAI QALANDAR CHAI SASSI CHAI

 SPECAIL DIET TEA

Clen- orange rose merry ice tea Clen-Black berry mint ice tea
 Executive Summary
One-Pager Business Plan

Problem to Solve • Burn fat Mission, Vision & • Mission Purpose of FG taza chai is to meet every need of
& Solution • Stimulate mind Strategic everyone to anticipate the aspiration of our consumer and
Objectives customers to respond creatively and competitively with product
• Fresh Aroma
which raise the quality of life
• Prevent Cancer
• Vision: available within an arm’s reach of every individual desire
• prevent fatigue and create a better life everyday
:
• Highly attractive market segment and swot • FG Taza Chai enter into a new market with unique features it may not
Market Analysis Competitor
analysis has deeply identifies the dynamics of have direct competition but threat of substitute exist
Analysis
the market

• we will be targeting customer from age 15 to 65 • We will run different marketing campaign in order to reach our
Customer Marketing
who are fitness enthusiast prospective customer
Segments Plan

• It is a Partnership in general type of • Capital required is 10 million

Business Financial
Structure entity Plan • Source of capital are owner investment and loan from Bank:
• Revenue streams will be from goods and services
• Cost structure will have high variable cost and low fix cost
SWOT Analysis

Strengths Weaknesses

Internal • uniqueness • Financial Capacity

• Management Team • Brand recognition
• First mover • Reliant upon particular tea beverages

Opportunities Threats
External

• New product in Traditional drinking • Import tariffs

• Increasing fitness trend • Monetary devaluation
• Increasing hot beverages market segment • Globally Increasing tea rices
 Ansoff Growth Matrix

FG Taza Chai

Market Development Diversification

New Strategy Strategy

we are entering into new

market with new product
Market so product development
stategy

Market Penetration Product Development

Current
Strategy Strategy

Current New
Products
 FG Taza Chai Main Goal

term
ea rn a m ajo r mar ket Share we belief in long
Seeking to ov iding them with the high
est
th ou r cu sto me r by pr
relationship wi
quality possible

Current
Current
Quality
Quality Maximize
Maximize Maximize
Maximize profit
profit
revenue
revenue
leadership
leadership quantity
quantity margin
margin
maximization
maximization

Current
Current profit
profit Partial
Partial cost
cost Survival
Survival Status
Status quo
quo
maximization
maximization recovery
recovery

13
 Legal structure
POSITION IN THE
NAME PHONE NO. AMOUNT OF
MANAGEMENT
SHARE

Umair Tariq 0321-xxxxxxx 50% CEO

PARTNERSHIP- Ali 0322-xxxxxxx 15% Operation MANAGER

GENERAL
HUMAN
Abdul Rehman 0323-xxxxxxx 20%
RESOURCE

FINANCIAL
Awais 0324-xxxxxxx 5%
CONTROLLER

Suleman DIRECTOR OF SALES

0325-xxxxxxx 10%
AND MARKETING
 Who are funding?

Investment

50,00,000
Umair

40,00,000

30,00,000

HBL
20,00,000

A
10,00,000
S

Suleman Ali HBL Umair Tariq Name

Investor Suleman Ali HBl Umair Tariq

% Share 10% 15% 25% 50%

15
 Economic Viability
Cost Base Pricing
Suggested price 2000
Retailers Margin 10% 200
Retailers Price 1800
Wholesaler’s Margin 10% 180
Whole sale price 1620
Distributor Margin 5% 80
Selling Price 1550
Cost of good 500
Net profit 1050
Sales per month 300 package
Yearly sale 3600 Package
Profit/Annum Rs.7.02 Million
Consumer Based Pricing
Suggested price
800 700 600 500
Retailers Margin 10%
80 70 60 50
Retailers Price
720 630 540 450
Wholesaler’s Margin 10% 72 63 54 45
Whole sale price 650 565 485 400
Distributor Margin 5% 30 30 25 20
Distributor Price 620 535 460 380
Cost of product 200 200 200 200
Gross Margin 420 335 260 180
Advertisement cost 30% 125 100 80 55
Net profit 295 235 180 125
Expected Sale 200*12 400*12 700*12 1200*12
2400 4800 8400 10400
Revenue/annum in Million 1.92 3.3 5.04 5.02
 FG TAZA Chai

We will be using Skim pricing for our

special tea flavor in the initial round
in which we will charge very high until
a completer enters into our market
then gradually we will lower our price
to beat the competitor
SALES

PRODUCT
EXTENSIO
N

Product

Early Market Mainstream Market

INTRODUCTION GROWTH MATURITY DECLINE

Source of inspiration: Moore and McKenna

18
 Entry/Exit Barriers

Barriers to Entry Barriers to Exit

The threat of entry into an industry depends on a combination of High exit barriers can keep companies in an industry despite low
barriers to entry and the expected incumbent reaction. Threat of or negative returns. There can be economic, strategic or
entry is reduced if there are high barriers or likely aggressive emotional factors that keep companies within a low performing
incumbent retaliation. industry.

There are some major barriers to entry: There are 5 major barriers to exit:
1. Economies of scale 1. Specialized assets: (e.g. Low liquidation values; high
transfer / conversion costs)
2. Product differentiation
2. High fixed costs of exit: (e.g. Labor agreements; Spare part
3. Capital requirements
capability)
4. Switching costs
3. Strategic inter-relationships (e.g. Image, Financial markets,
5. Access to distribution channels/property rights Shared facilities)
6. Cost disadvantages independent of scale (e.g. Favorable 4. Emotional barriers
location; Proprietary technology; Access to raw materials)
5. Government / social restrictions
7. Government policy
 Entering a new market - Framework
 Distribution channels: we
will import tea from china,clen
from Alibaba and thiamine from
Saloni.com
 Cost per product: Cost per
product will be PRs 500
 Revenue per product: our
product will earn PRs 1550
 Profit per product: Profit per
product will be PRS 1050
 Competition: there would not
be much competition but the
traditional Tea market, coffee and
weight loosing products
Viability
 Profit: market size is huge and
profit per product will be near to
PRS 1050 per product
20
 Product: Can you describe the key product(s) you would sell? Is it a
commodity or a differentiated product? Key benefits? Any potential
Substitute product? Packaging? Life cycle?
 Market size in volume: Who are our customers ? Any customer
segmentation? What is the size and the trend of the customer demand?
Are we answering a customer need? Are we creating a new customer
need?
 Price willing to pay by customer: How much the customer would be
willing to pay?
 Market size in value: Number of customer X Product price
Desirability
 Capital requirement: we have
enough capital to serve our market
initially without hurting the stability of
the company
Feasibility  Legal Structure: IT is a partnership
business
 Risk: there maybe financial risk since it
a startup with limited resources
 Capability: Our management team
with a vast experience and dedication are
FG Taza Chai? capable enough to enter into this market
and run this business smoothly
 Competitive Forces Low Medium High
Bargaining power of suppliers    

Bargaining power of customers      

Threat from substitutes      

Threat of new entrants      

Level of Rivalry in the Industry      

 Operational Plan
Priority Actions Resources Who When Done? How To Measure Annual Life Status
Required Responsible?

Priority Action #1

Withering withering tables Employee X 10-20 Hours Moisture go down 3 Years

Rolling rolling machines Employee X 20-60 Mins Leaves oxidize 5 year Life

Priority Action #2

Fermenting Dry Surface Employee y 2-5 Hours Develop Flavor, On going

Aroma, Bitter
Taste
Mixing Clen,Thiamine Employee y 30 Min White powder On going
disappear
Priority Action #3

Drying flat conveyor belts Employee z 20-25 Min Dark color 5 Years
 e t i t o r s
Co mp
a l y s i s
An
Industry sales volume
Sales

5,000
Qmar chai
6%
4,000 vital
6% tetly
4% 3,500

Lipton unilever 43%

tepal
34,000 41%

32,000

vital tetly tepal unilever mushroom

SALES VOLUME in Tons(UNILEVER)

Sales
10000
yelolow lable
29%

16000 supreme
47%

5000
peal dust
15%

500 red rose

1%
A-one kark
7% 25 0
yelolow lable peal dust A-one kark red rose supreme
SALES VOLUME “TAPAL TEA”(2017)

Sales
OTHER
CHANAK; BRANDS; 500; 2%
2500; 8%

TEZDUM; 3000; 9%

DANEDAR; 13000; 40%

MEZBAN; 8500; 26%

FAMILY MIX; 5000; 15%

DANEDAR FAMILY MIX MEZBAN TEZDUM CHANAK OTHER BRANDS

BRAND AUDIT-TARGET
family
 Packs will be vibrant color mixing of “yellow and purple” along with visual effects of lively family
 Image of rejoicing moments in every shot

individual youths
 Antioxidants “keeps you healthy and strong”
 FG cup of tea “each sip bring refreshing & energetic feeling”
 Fresh alluring aroma of mixture blend
 Comes in 60g, 125g, 250g, & 500g or “50g, 100g, 400g & 1000g”
 Active, healthy, normal weight, 10-70 year olds
 People who are active life conscious, especially in exhausted condition
 Middle to upper class
BRAND AUDIT-IMAGE

 FG-T is category logo gives double strength to brand and corporate

 TAZA chai logo gives cozy effects with smoggy hot feelings
 Solid colors gives fresh morning effects, unique trending packing gives double
edge to the brand
 Smoggy waves on pack create fun
 Slogans is “TAZA CHAI, TAZAGI LAI”, “Karak color and fresh aroma brings
life to hot cup of tea”
 BRAND AUDIT-POSITIONG
EXPENSIVE

 Innovative
 Young
 Healthy
 Energizing
 Refreshing WEAK AROMA STRONG AROMA
 Fun
 Aroma

COST EFFECTIVE
 Personnel Plan

 I believe the personnel plan is in good proportion to the size of our company and
projected revenues.
 There will be the differentiation in the salaries of full-time employees and part time
employees.
 There will be award like “ best employees of the year” to boost employee
performance.
 Proper allowances will be provided to increase the job satisfaction level.
 Marketing Strategy

Marketing strategy will be to promote our product awareness,

superior quality.
Marketing initiatives will concentrate on the advertising ,promotion
and customer service
OUR COMPAINGH PHASE-1

BTL CAMPAIGN
 MOBILE “TAZA CHAI DHABA”
 Free sampling “liquid tea testing”
-100 cups/spot(100 spot in selected town)
-free branded “tea filter”, “mugs” and “tea” “mate giveaways”
 PROMOTION EXAMPLES

Free hot tea Tea strainer

Tea mate
Free mugs
OUR COMPAINGH-PHASE 2

 Local cables ads:

commercial during cables network movies, dramas etc.
 Magazine:
full page ad on all kind of magazines
 Out of home signage:
billboards, walls capes, shop Fascia
 Internet:
banner ad on magazine and websites “Facebook, yahoo, msn”
 Co-branding:
available on pizza hut, KFC, fri chicks, MacDonald's etc.
OUR CAMPAIGN TIME-LINE
1st July 2020
 BUDGET GOING
Sales

10%
5%

15%
55%

15%

production expense prduction expense purchasing of raw material personal expense operating
Production expense purchasing of raw material advertisement field force expense fix cost
WHERE IS THE ADVERTIZING BUDGET
GOING
(Rs 10,00,000)
MEDIA VEHICLE REACH/FREQUENCY % OF TOTAL BUDGET

Local cable ad 40,000 People 35%

Local magazines 5,000 people 7%

Out of home signage 10,000 people 10%

Internet 5,0000 people 45%

Promotions 30,00 people 3%

FG-TEA CAMPAIGN GOALS

 Reach over 20,000 consumers

 Increase brand equity by extending brand awareness
 Develop strong brand image and personality
 Position TAZA as a unique and innovative product
 Financial Plan
FG TAZA ‘S FINANCIAL MODEL IS BASED ON A BUSINESS CONCEPT TO “PLAN FOR THE WORST, BUT
MANAGE FOR THE BEST”
FG TAZA CHAI PLAN WILL INCLUDE:
 IMPORTANT ASSUMPTIONS
 RISK ANALYSIS
 BREAK EVEN ANALYSIS
 PROFIT AND LOSS STATEMENT
 CASH FLOW STATEMENT
 BALANCE SHEET
Any question