Business Plan Of Innovative Green Product Marketing Essay

Business Plan Of Innovative Green Product Marketing EssayThe coconut palm meat crop is great(p) in 14.3 million hect bes of land which constituted ab pop out 1.1 per cent of earn crop atomic number 18a of the world. And annual output is around 13.3 billion coconut kookie in the India. In 1000 hect bes of land approximately 1,47,000 trees can be intentionted and which can give 23 million coconuts. India contri exceptes almost 15.46 per cent in area and 21 per cent in terms of production of coconut in the world. The coconut crop is grown in eighteen States and three coalescence Territories. It is concentrated on the West Coast region of the country comprising the states of Kerala, Karnataka and Maharashtra, followed by East Coast of Tamil Nadu, Andhra Pradesh, Orissa and Pondicherry.The coconut cultivation areas in any case traditionally find in the coastal region of Gujarat, Goa, West Bengal, Islands of Andaman Nicobar and Lakshadweep. Kerala is considered as the land of coconut and holds the key for the development of coconut.Coconut Development BoardCDB is a main disposal for the expansion and development of coconut industry. It is the main body which is attached to the coconut industry. Coconut Development Board is a statutory body established by the Government of India for the integrated development of coconut production and utilization in the country with focus on productivity increase and product diversification. The Board which came into domain on 12th January 1981, functions under the administrative control of the Ministry of Agriculture, Government of India, with its Headquarters at Kochi in Kerala and Regional Offices at Bangalore in Karnataka, Chennai in Tamil Nadu and Guwahati in Assam. There are six State Centres situated at Bhubaneswar in Orissa, Calcutta in West Bengal, Patna in Bihar, Thane in Maharashtra, Hyderabad in Andhra Pradesh and Port Blair in the aggregate Territory of Andaman Nicobar Islands.FUNCTIONS OF THE BOARDImpart ing technical advice to those eng antiquated in coconut cultivation and industry.Providing financial and other assistance for the expansion of area under coconut.supporting adoption of modern technologies for military operationing of coconut and its products.Adopting mea undisputables to get incentive expenditures for coconut and its products.Presentation of DataFor starting of any occupation, we required whatsoever food market look selective information. Data may be primary or secondary data. Primary data are those which are collected for the original time. And the secondary data are those data which are collected from secondary sources like research paper, circulars, guidelines, magazines etc. We have to gather data which can help us in find out the feasibility of project.Here in this business plan we have collected primary data through questionnaire and interview regularity. Also we have studied some important data from government agency like Coconut Development Board (C DB), Food Agricultural Organization (FAO) etc.Following are the data was collected.Consumer Survey was carried out.Around 1000 Questionnaire were filled out.65% respondents chosen infixed health Coconut WaterOut of this 65% the proportion of age aggroup of 18-35 years was around 70%.Market Availability/ Market PotentialityThe coconut is not only significant in socio cultural needs of our society, but also has gained considerable importance in the national economy as a potential source ofemployment and income generation among the plantation crops.In India cushioned assimilate and juice industry is very vast. India has a diverse agro-climatic condition due to which there exists a wide-ranging and large raw material base suited for food processing industries. India is the largest producer sugarcane, coconut etc. If we hatful up a plant, the availability of raw materials and infrastructure would be available to the entrepreneur.Indian modest drinking market is valued to be Rs.7 100 croreIn India soft drink companies have captured a large amount of market for colas and juice products. This is because of two reasons. low is India has a large population which can afford to consume a cola product with a reasonable price. Second is penetration of marketing activities carried out by marketers.In India the market for natural and health drink like coconut piss has not surpassed too lots. The reason may be lack of advertising efforts and lack of awareness among mickle about the coconut urine benefits. So if we just turn the preference of 1% of the soft drink colas consumers, it testament be great or huge market for coconut water. This is the reason of foc apply on soft drink market. The carbonated drinks are the mainstay and accounts for 85% of the amount of money soft drink market. There are also around 15% of the consumers prefer juice market. So they can be a little efforts required to shift their preference.Coconut water can be the part of the $19 bill ion sports drink market globallyIn todays fast and trying situation energy drink and sport drink are becoming more(prenominal) and more famous and favorable choice of consumers. Sports drink is useful to Athletes and sports enthusiasts to fill up electrolytes lost in perspiration. Coconut water contains more nutrition than any commercial sport drink.India being the less developed in nutritional aim and governments interest in increment up of nutritional productsIndias rank in health development and facilities is very lower. As the time passes, government is also winning interest in increasing the nutritional product expansion and health of the public gets superior. So it may be steering point for development of coconut water.Benefits of the productFirst of all to start any of the business, we have to recall about the benefits of the products and how it testament be marketed so that the maximum utilities of the product can be possible. The water of tender Coconut is a sterile , nutritious, aridness quenching health drink. The pure and sweet tender coconut possesses enormous therapeutic properties and is a thirst quenching refreshing health drink for all age groups. Tender coconut water has the same level of electrolytic balance as we suck in our blood.Numerous medicinal properties of tender coconut water reported are(Given by Coconut Development Board)Good for feeding infants suffering from intestinal disturbances.Oral rehydration mediumContains organic compounds possessing return promoting propertiesKeeps the body coolApplication on the body prevents prickly heat and summer boils and subsides the rashes ca apply by teeny-weeny pox, whiner pox, measles, etc.Kills intestinal wormsPresence of saline and albumen makes it a good drink in cholera casesChecks urinary infections.Excellent tonic for the old and cronkUseful for different diseasesUseful to Athletes and sports enthusiasts to replenish electrolytes lost in perspiration.Can be injected intraven ously in emergency case.Ingredients Nutritional FactsAs everyone knows about health benefits of coconut water. Coconut water is also used for long term benefits like smoothly digestion system, smooth urine system, maintains body temperature etc. In coconut water main ingredients has been elaborated as follows. These all facts about nutrition is taken into consideration per 100 ml of coconut water.Nutrition(Per 100 ml)chiliad (mg %)247Sodium (mg %)48Minerals (mg %)0.5Fat (mg %)0.1Calcium (mg %)40Magnesium (mg %)15Phosphorous (mg %)6.3Iron (mg %)79Copper (mg %)26Protein (mg %)0.1Production ProcessThe process from the starting to its final products is very easy. It does not require a high degree of mechanicals or engineering process.Coconut Water of 6-7 month stage is first filtered through pressure filters and then combineed with the desired proportion of additives plus sugar and concentrated to the appropriate level. The water is then packed in pouches/cans and retorted in an autoc lave, after which it is cooled in a stream of cold water.List of forgery to be usedCoconut water collection tank AutoclaveFilter linear mixing tankcoconut water storage tankVolumetric filling machineBaby boiler cranky material10000 Coconuts final examination product3100 litresDriving Forces for Coconut WaterAt the time of setting up of any business, we have to see possibilities or factors that can help us in developing/expanding our product line. Generally these are called driving forces of the product. Following are the driving forces for the coconut water.Abundant availability of raw materialAs we have seen that the India being the 3rd largest producers of coconut nuts globally. This production of crop has spread over the many states and union territories of India. So we can be sure about the continuously supply of raw materials throughout the year. The main season of procuring raw material is monsoon.Convenient in moving to final consumersGenerally, a coconut nut is heavy in wei ght and sometimes makes it difficult to carry in bulk. Even the time has come for case food and processing items. The marketability of packaged food and beverages has increased tremendously since last decades. So if coconut water is packaged in tetra pack or aluminum can or pouch, it testament be convenient in carrying at different places for different time.Increasing awareness about health consciousnessIn todays time people are tend to be more health conscious and prefer to natural eatable items. More specifically in metro cities or urban areas people have suffered too much from the disease and they are bearing the cost of hygiene foods. It is the result that coconut industry has developed by 2-3 times.Increasing dieses due to the soft drinks have awaked public more.Pure natural and hygiene product by sciencesIn todays warlike era, everything has to be prove and get it to be certified and registered with the relate agency for consumption. Coconut water is declared as pure natu ral and health drink by science. So it may also increase the chances of win over people to shifts their choice.Liberal Government policy towards healthier eatable itemsGovernment is also helping for promotion of healthy food and beverages. So for the coconut water promotion government policy may not be as strict as in the case of some others products.Increasing demand of By product like Ethanol coconut oil etc.It has been increasing amount of pet partum products. Thereby spreading pollutions and decreasing volumes of non-renewable sources of energy. Lignocellulose can be used for this purpose.9. Target marketIn the very beginning before launching of any product one has to think about their target market. Who testament be their target customers?For the successful launching of Coconut Water in the market, hobby consumers would be targeted.Youth people India being the youngest country in worldOld aged peoplePatients (Strong Focus)ChildrenLadies specially for pregnant ladiesIndia is the youth nation in the world. And youth people are tend to be more health awareness. Also India has a contend of opport unit of measurementies for the patients as we have large number of sick people every year. We can also target pregnant ladies. Because even the doctors are also suggesting to drink coconut water as a good medicine.10. Marketing and CommunicationAs we have studied earlier that the reason for not popularity of coconut water product into the market. So here extremely efforts would be towards the marketing and communication sentiments of marketing mix. Here we can consider important factors that affects to the final consumers. i.e. four Ps of marketing viz.PriceProductPlace forward motion.pricePrice of the product is very crucial and determinant of profit from that product. Especially here in the case of coconut water as we have to enter in that market which is dominated by giant companies with their giant operations of efficiency and marketing campaigns. At this s tage we can go for two options that is capturing market share with lower determine and creating awareness among public. And other option is charging competitive pricing with colas companies.Pricing introductory stageHere we go with this option preferably. At the introductory stage of launching of product we have to pull huge customer attention. So we willing keep our pricing at lower margin compare to the soft drink colas companies. At the initial stage we have decided price of Rs. 15 per 300 ml bottle.Competitive pricing to soft drinks and colasAs we start to grow our product into market, and research talks about the consumer awareness about coconut water into the market we will be able to charge competitive pricing to the colas companies.ProductThe second P of marketing is Product itself. It states followingHow should be the product?How should it be packed in attractive way?How should it be in size etc?How should it be looking externally?Here we will in the initial stage focus on 300 ml packaged in aluminum can. Afterwards in family size of 1 ltr,1.5 ltr and 5 ltr bottle. The main focus is on the external looking of the packing.PlaceThis P of marketing states about how product should be placed at different places so that there is maximum possibilities of sell. Place for Coconut Water includes followingHospital regionCollege areasSports areas Gym KhanaMallsCentral areas etccoffee houses or high end pungency shopsWith the hope of moving the product into a more mainstream setting, our distribution strategy aims at selling to larger distributors that directly capture our niche target markets. We plan on expanding from smaller localized grocery stores into mainstream action sport retailers including Sports Chalet, Sports Authority, larger surf retailers, 24 Hour Fitness, and Golds Gym. Our plans to move into these distribution channels with confidence, knowing the growing demand from our current selective target market.PromotionPromotion may be of two types i .e. product promotion and sale promotion.Product promotion Promotion of the products means making products more popular among the general public. Product promotion of Coconut Water includes-Advertising.Free sample distribution.Health awareness programs.Social networking sites etcYoga centersgross receipts promotionSales promotion means how to increase short run gross sales of the products. It denotes short run increase in sales.For the Coconut Water it includes-Discounted pricing for big quantities like family pack, executive pack or party packing.Presenting lucky draw prizes.Sponsoring some social events.Point of purchase11. By productsIn todays competitive era, cost reduction and maximum utilization of available resources has become very much important. It means in the production process, there should be a borderline wastage. Every component should be utilized as possible as their extent. Following are the coconut by products.Ethanol (lignocellulose waste)Though it is too much difficult to get liquid in terms of ethanol from wastage of shelf that is called lignocellulose waste. The reason for this coconut shelf has a large amount of glucose and minerals. If we are using huge amount of coconut shelf, it will be available for the by product.Coconut oilThere are so many producers in the market who makes coconut cop oil and also coconut edible oil. Coconut oil is used in the country as a cooking fat, hair oil, body oil and industrial oil. Coconut oil is made from fully dried copra having maximum moisture content of six per cent. Steam cooking of copra is also practiced by some millers to enhance the quality and aroma of oil. not bad(p) coconut oil is also manufactured in the country for industrial uses. Refined coconut oil is mainly used in the manufacture of biscuits, chocolates and other confectionery items, ice cream etc.12. Export OpportunitiesToday the extent of foreign trade has increased by many folds. Considering it as an opportunity we can also lo ok forward for export efforts of coconut water in packaged form.The countries like UAE, USA, Japan and UK are the major export destination for the products. Because these are the nations which have applied and maximum users of the product. Even this nations government also plays an active role in marketing of this healthy product.First and foremost we have to acquire IEC (Import Export Code). This code can be availed through the DGFT i.e. Director General of outside(prenominal) Trade. early(a) than this there are so many documents required for fulfillment of the regulations like LC, Leding Letter, GR form, FEC A/c with RBI, quality certificate, contract with the overseas and domestic deposit banks etc.We can also set up our plant at SEZ or EOU to avail the various government skims and subsidies.13. toll AnalysisThe very important aspect of any product or service is its price. Cost analysis includes from the beginning i.e. from the procurement of raw materials until it reaches to the final consumers. It is consisting of direct and indirect expenses.Purchase Rs. 4.50 per unitOther Cost Rs. 6.00 per unit1. Transportation Cost.2. Marketing Cost.3. Packaging Cost.4. Office Cost.5. Other Cost.Total Cost per Unit Rs. 10.50Selling price Rs. 15.00Less (Total cost) Rs. 10.50Profit per unit Rs. 4 .50Financial AspectsAs we know finance is a blood for any organization. As our body will not work without blood. Similarly business activities cannot be worked or done without availability of finance.Here in this B plan we have taken pretending for coming five years. We have calculate financial flow for five years. Because at least we should be clear about next five years about our business, though not at all sure.InvestmentTotal machinery cost Rs. 12 lakhsOther Fixed cost Rs. 20 lakhs (Including Working Capital)Total cost Rs. 32 lakhsTotal receipts interlock revenue in 1 year Rs. 54,00,000Total net revenue in 5 years Rs. 3,22,82,700Here machinery cost includes diffe rent types of machine required for carrying out the process. Other fixed cost includes land expenses, depreciation expenses, some lease expenses etc.Year wise calculation of revenue and growthYearSales(units)Per Unit Price(Rs.)Total Value(Amount)% Growth13,60,0001554,00,00023,78,0001556,70,000534,08,2401561,23,600844,57,2401568,58,6001255,48,7001582,30,50020Total21,52,18003,22,82,700Here we are setting target of monthly sales of 30,000 units thereby one-year sales in units will be around 3,60,000 units. By multiplying this by sales price of Rs. 15, we get net revenue of Rs. 54,00,00 at the end of initiative year.In the second year, we are setting target of 5% increase in sales volumes in 3rd year 8%, in quaternary year 12% and in the last year 20% growth in sales volume.If we sum up, we will have earned net revenue of Rs. 3,22,82,700 in five years of time (assuming that the selling price would remain the same and growth target will be achieved through).Profit Calculation cabbage r evenue Rs. 03,22,82,700Less fixed cost Rs. 32,00,000Less Variable cost Rs. 2,25,97,890Net Surplus -For five years Rs. 64,84,810Average profit per year Rs. 12,96,962 decease EVEN POINTFIXED COST Rs.32,00,000- = -CONTRIBUTION Rs. 4.507,11,111 UNITS===============BEP means at this stage No profit No loss. So it means till the sales volume of 7,11,111 units we will not have a profit. In second option if we want profit every year, we have to write off sufficient proportion of fixed cost from profit.15 .Financial Feasibility of ProjectBefore investing any amount in a project investor will think about its return. For this there are various method can be applied like Pay Back Period (PBP) method, IRR method or Net Present Value (NPV) method. Among this NPV is considered to be an appreciable method as it takes into account present value of future inflow. So here we will use NPV method to analyze the financial viability of project.Net Revenue Variable cost Fixed cost = Net surplus(In Rup ees)YearNet Revenue(Rs.)VariableCost(Rs.)FixedCost(Rs.)Net surplus(Rs.)PV factor 12%NPV(Rs.)154,00,00037,80,0006,40,0009,80,0000.8938,75,140256,70,00039,69,0006,40,00010,61,0000.7978,85,617361,23,60042,86,5206,40,00011,97,0800.7128,52,320468,58,60048,01,0206,40,00014,17,5800.6369,01,580582,30,50057,61,3506,40,00018,29,1500.56710,37,128Total32,00,00045,51,787We will calculate NPV 12% rate of return i.e. our required rate of return.We have total fixed cost of Rs. 32,00,00 spreading in five years of life. So per year we will write off equal proportion which is Rs. 6,40,000.So we will get net surplus every year by deducting variables and fixed cost from net revenue.If NPV 1 project is selectedIf NPV If NPV = 1 project may be selectedConclusionHere in this project NPV 1. So project should be selected.As the total sum of future flow at present is greater than its investment made. Here our NPV is Rs. 45,51,787 and our investment outlay was Rs. 32,00,000.. Challenges/ Limiting factors fo r growthMarket Dominated by soft drinks companiesAs we can see in the market that the colas and drinking market is well dominated by giant colas companies. So As a new player in the market it will be tough to sell our product. And specially to convince to try a new one which is not entertaining or any status to the final consumers. So we have to work upon this and have to make proper strategies and programs to capture a market share. racy popularity of soft drinks and colas among youthsAs our youth people are most consuming colas. There is too much marketing penetration on youth. So bedridden be difficult task to make our product more popular. Because unless our product is popular, no one is going to buy it or no one will know about our existence in the market. We have to divert maximum efforts towards the marketing funda.Challenges to maintain health standard of product as it is a natural productAs we are marketing our product as a natural product, we have to be very quality consc ious and obey standards set by various laws. If we fail in that, competitors will take advantage of it and they will start spreading wrong rumors into market which will cause our last sales volumes.From the view point of lower income society, it is an Exploiting business. As it reduces their employmentIn majority case, coconuts are sold by small vendors on the roadside. Generally they are lower class people. They run their family on daily income basis. So if we start selling coconut water in packaged form, it may happen that small vendors sales will decline and consequently there will be negative impact on the family running. So they may also start a unethical social activities. So we have to find out solution to overcome these challenges. Here we can make them our vendors. And also we can follow the model of supplier and franchise.No longer life/Changes in taste in long period of timeIf the coconut water comes in touch with air, indoors 24 hours it will spoil. We will not be able to drink it. The reason is some important bacteria evaporate from it. So as a solution we have to use scientific preservative technology and packaging techniques. Here we can add some additives which is natural and not harmful. We cant mix any hazardous chemicals like soft drink colas.17. LawsFor doing any business we have to follow the rules and regulations, policies of government laws. Here especially we are in urbane and packaged food business. Also we are dealing with agro food as raw materials. So we have to take into consideration various laws. Below is the magnetic dip of laws that we have to consider.Prevention of Food Adulteration Act (PFA), 1954The Standards of Weights and Measures Act, 1976The Standards of Weights and Measures (PackagedCommodities) Rules, 1977The Insecticide Act, 1968.Export (Quality Control and Inspection) Act, 1963.Environment Protection Act, 1986.The Food Safety and Standards Act, 200618. ConclusionAs it is a natural and energy productPeople are bec oming more health consciousComing time is of natural itemsMarket is broadRaw material and environment is appreciableHealthy government policies and subsidiesEvery coin has two sides. Similarly it has also pros and cons of starting up of unit. But after analyzing facts and situation, the more possible weight goes towards its favorable.