REPORT ON ENTREPRENEURSHIP

SUBMITTED TO,

SIR YAWAR ABBAS

SUBMITTED BY,

NAMES Reg. #

MUHAMMAD SHAHNAWAZ 2008-Ag-43

MBA (Reg) 4th SEMESTER

DEPARTMENT OF BUSINESS MANAGEMENT SCIENCES

1

ACKNOWLEDGEMENT

Countless thanks to ALLAH Almighty for giving us such extraordinary abilities and

making us privileged enough to take part in such activities and all respects and regards to

Holy Prophet Hazrat Muhammad (PBUH) for giving us the faith paving us on the

right path with the essence of faith in GOD.

We would like to thank our Supervisor Mr. Yawar Abbas for his cooperation and help.

He fully supported us throughout our work. We express our heartiest gratitude to him.

His cooperation made this project a lot much easier..

We also express our profound gratitude to ALL OUR Friends who supported us a lot not

during this project but through out the whole semester.

Finally, we wish to record our deepest obligations to our Parents and Family for their

prayers and continuous support.

2

GOALS

The primary goal of this project is:

o To provide the reader (i.e. Investors, Retailers and consumers) with a basic understanding about our product, that is, INSTANT TEA manufactured by

GREEN LAND MANUFACTURES a private limited company.

o To let them know the features of the product that what are the ingredients of the product and how this tea is different from the others in the market.

Green Land Manufactures

Saddar Bazaar Gulam Muhammad Abad

3

Shop number 165, Commercial Market

(041) 8862348

www.greenlandmanufactures.com

Description of Business:

Green Land Manufacturers is a company which provides a unique product Instant Tea.

The Instant Tea is basically a ready to use tea with all the required quality ingredients

(tea, powdered milk, and powdered sugar) with different flavors, just put the teabags

into the hot water and a refreshing hot tea is ready.

Financing

Initial financing requested is Rs 4,000,000 loan to be paid off over ten years. This debt

will cover office space, office equipment and suppliers, two leased vans, advertising

and selling costs.

This report is confidential and is the property of the co-owner listed above. It is

intended for use only persons to whom it is transmitted, and any reproduction or

divulgence of any of its contents without the prior written consent of the company is

prohibited.

EXECUTIVE SUMMARY

4

Many Pakistanis have a perception that not having a cup of tea in the morning will leave

a day blank for them, tea one of the most used beverage after water in Pakistan and it is

so popular that its nearly impossible to start a day with out a cup of tea. Serving guests

with hospitality is that guests are always asked for tea in Pakistan, in offices people

always want a tea for refreshment this is explaining how much tea is given importance in

Pakistani peoples life.

The goal of this business plan is to outline the strategies, tactics, and programs that will

make the sales goals outlined in the Green Land Tea Manufactures business plan into

reality in the year 2010. Basically there are 9 persons which are going to establish a unique business in Pakistan as entrepreneurs. We needed Rs 10.0 billions to start this business. We have Rs 4.0 billions as owners equity and remaining Rs 6.0 billions will

get from banks in the shape of loan. Pay back period of our investment is 7.83 years.

Capital budgeting showing that our project has a positive net present value and higher

internal rate of return than to the market opportunity rate 13%.

Green Land Tea Manufactures, unlike a typical company, provides a unique form for

taste and high quality tea within no time. The name of the product is Instant Tea. Actually

Green Land Tea Manufacturers is the answer to an increasing demand for quality tea in

shortest possible time.

The instant tea is basically a ready to use tea just put the teabags with all the required

quality tea ingredients (tea, powdered milk, and powdered sugar) into the hot water and

your refreshing hot tea is ready. We are getting the sugar from the local supplier, for the

milk powder we have contracted with 'Everyday' and we are importing tea from Kenya.

As a new brand is get underway in the market there are chances of failure so for that we

have conducted a market research & from that research we came to know that this

product will be a super hit in the market and exactly the customer want this product to

come into the market.

5

Marketing will play a vital role in the success of Green Land Tea Manufacturers. The

company will build a brand around the services it offers by heavily promoting itself

through local television, radio, and print advertising. Marketing efforts are just beginning

by the time a potential customer enters Green Land Tea Manufacturers for the first time.

A strong emphasis will be put on keeping customers and building brand loyalty through

programs focused on staffing, experience, and customer satisfaction.

The basic motive behind every business is to generate profits out of it. We also need

profits to manage our needs and growth of the business. We will focus on superior quality

as well as reasonable price that customer can afford.

Basically the idea behind this company is that think big by thinking small means that we

want an entrepreneurial change in the culture of tea. For starting our entrepreneurial

activities we have targeted the small part of working class people because this working

class has one of the major effects on the economy of the country.

For that we are moving with the Motto:

We are not just asking for your money; but we are anxious about your

time

6

TABLE OF CONTENTS

Introduction to product .....9

Vision statement........10

Mission statement.........10

Situational analysis.11

Environmental analysis...11

Swot analysis..12

Pest analysis13

Competitors....14

Direct competitors..14

Indirect competitors....14

Competitor's analysis...15

Keys to success....16

Industry analysis..16

Market share picture...17

Future outlook & trends...18

Venture description..18

Organizational plan .19

Form of business.19

Management team19

Organizational structure21

No of employees22

Check signing authority 23

Salaries..23

Plan to meet personnel needs.23

Performance management system23

Roles & responsibilities of members of organizational charts..24

Production plan.29

Operational plan30

Marketing plan analysis.33

7

Marketing mix...39

Product..39

Price..42

Placement..42

Promotion ....46

Assessment of risk....47

Financial plan analysis 48

Contingency plan.55

Harvesting strategy..55

Appendix 56

8

INTRODUCTION TO PRODUCT

It is a new product to be launched in the market about which you have never listened and

even never thought before. It will be launched and come in the market in year 2010. It is

basically a consumer product and is necessity of almost every house and it is usually used

in routine in many houses and offices. The name of the product is: INSTANT TEA.

Instant Tea is manufactured by the GREEN LAND MANUFACTURES. Our tea has

special feature that it is prepared within few seconds and all ingredients (tea, powdered

milk, and powdered sugar) are combined in a balanced quantity in the Quick Time. It is

in the form of teabags. You have to do nothing, just boil water and dip the teabag in that

and your delicious tea is prepared in few seconds time. There was never such an easy

way to prepare a quality tea that we have made possible

WAS IT DREAM?

We strongly believe in an idea and a vision rather than a dream. What we have always

wanted for ourselves, we want this for others as well. We want to make people realize

that they can have the quick time making of tea to save their time.

We would promote Healthy & Tasty living.

Instant tea bags will be very proficient for the users and customers as all want something

that can be prepared quickly and within a blink of an eye. So we have firm belief that as

this product has not been introduced in Pakistan it will have its unique attraction and rare

importance among the consumers. The whole idea behind this concept was to introduce

new and improved drinking habits of the people.

9

VISION STATEMENT

We aim to be the market leaders of Tea Industry

MISSION STATEMENT

We provide instant flavored tea with all required contents in a tea bag to

our time starved customers in urban areas. Our aim is to become market

leader in instant tea with our committed employees.

10

SITUATION ANALYSIS

Tea is the cheapest and most popular beverage that is served at both professional and

social gatherings all over the world. In Pakistan it is counted as a staple food item of

common man and is an integral part of our culture and heritage. Due to these causes

Pakistan consumes a substantial quantity of tea. There are many brands like Lipton,

Tapal, Supreme etc that are fulfilling the Pakistans demand for tea but no one pay

attention to that now people are becoming time conscious. They dont want to waste their

time, they want to utilize their time in productive things, here we found a gap so keeping

in view this need of our customers on which no one is paying attention we are going to

provide tea in the form of tea bags that will be proficient for the customers and the users

as all want some thing being prepared quickly with in blink of an eye.

ENVIRONMENTAL ANALYSIS

We have conducted the SWOT and PEST analysis that what kind of situation we are

going to face when we launch our product. By knowing that what our strength and

weakness and with help of that we can convert the threats into opportunities. Also we

conducted PEST analysis to know the political, economical, and social & technological

situation in the country.

11

SWOT ANALYSIS

The SWOT analysis provides us with an opportunity to examine the internal strengths

and weaknesses we must address. It also allows us to examine the opportunities presented

to the company as well as potential threats.

STRENGTHS:

i. Strong Partners; All of our business partners are knowledgeable, friendly and

strong. Also our suppliers such as EVERYDAY very strong and supportive to us.

All are committed to enhance the quality of product with their support and hard

work.

ii. Clear Vision of the Market Need; Green Land Manufacturers clearly know the

need of their customers and they aim at satisfying their customers in best possible

way.

iii. Easy Changes in Strategies; As we are engaged in a small business unit so it is

our strength that we can change our strategies with changing mood of the

environment.

iv. Unique Product; We have no direct competitors in the market because we are the

first movers and introducing a unique product.

WEAKNESSES:

i. Low Capital: We dont have much capital to fianc our business and it is one of

our weaknesses.

ii. Dependence on Quickly Changing Technology: This is the era of rapidly

advancements in the technology that is bought only with huge capital and in start

we would have low capital to spend on that.

12

OPPORTUNITIES:

i. Growing Population of Daily Tea Users: Now-a-day, tea has almost a necessity

of every individual. As the population of daily tea users increases, we have an

opportunity to capture more of the market share.

ii. Stable Industry: Tea industries comparatively a stable industry as compared to

other industries. So our product has opportunity to grow in the market and we can

make huge profits out of it.

THREATS:

Cheap Technology: As the technology is being getting cheap and cheap day by

day it is possible that in future we might have number of competitors.

PEST ANALYSIS

PEST analysis tells us about political, economic, social and technological effects faced by

our product in the market.

Political Effect:

The Government policies regarding the business class in Pakistan and regarding other

matters may affect our business too. But we do not expect that we would have many

problems regarding political conditions in Pakistan.

Economical Effect:

Our teabags formed tea would not be much expensive for our customers and would be

sold at affordable price. It will also be economic for us as manufacturers because we

would be able to make it on lower cost and sell on high price and will gain profits for us

as well.

13

Social Effects:

We may face certain problems regarding the peoples response to our product. In this

region the people are conservative and loyal with their already using brand, not want

changes in their lives. So, it will effect or difficult for people to change their traditional

taste of tea with a newly emerged tea. But we shall formulate the strategies to overcome

their problems and make the people addicted to our product.

Technological Effects:

We dont require high technology to prepare this tea. So, technology factor will not effect

as much as in other industries.

But one threat we face is that there are big giants sitting in the market like Lipton, Tapal

and Supreme etc. as technology is going on cheaper and cheaper day by day, so, they can

make a prodct like us in the future and our sales may deteriorate.

COMPETITORS

Direct Competitors:

We have no direct competitors in the market because we are the first movers and

introducing a new product.

Indirect Competitors:

Our indirect competitors brand names are:

Lipton

Tapal Tea

Lemon Grass Tea

14

Citron Slimming Tea

Pepsi Cola, Miranda

Coca Cola, Sprite, Fanta

Shezan Jucies and bottles

Haleeb Condensed Lassee

Nescafe Coffee

COMPETITOR ANALYSIS

Competitors Strength:

i. They are in the market since long time.

ii. They have created an image in the market.

iii. They have huge capital to do every thing they want.

iv. They have plenty of brand loyal customers.

Competitors Weaknesses:

i. They engaged in huge business so cant change strategies early.

ii. They cant get the feed back from customers directly.

iii. Cant easily cope with changing environment and trends.

Opportunities for us:

i. We are engaged in small business can easily change our strategies on early stages.

ii. We get direct feed back from customers.

iii. Can cope with changing environment and trends.

15

KEYS TO SUCCESS

The keys to the success for Green Land Tea Manufacturers are:

The creation of a unique, innovative, upscale tea that will differentiate us from

other local and future tea competitive companies.

The establishment of Green Land Tea Manufacturers as a community hub for

socialization and entertainment.

High quality tea within a few seconds.

Educating the consumer about a unique idea.

INDUSTRY ANALYSIS

Tea is the most popular beverage in many countries. More than 2.60 billion kilograms of

tea are produced annually in the world. There are three main kinds of tea, i.e. black, green

and olong. But generally black tea is liked and all tea producing countries manufacture

black tea.

In Pakistan, Pakistan is not a tea producing country but is an important consuming

country, being the third largest importer of tea in the world and therefore of considerable

interest to the main tea exporting countries.

The consumption of tea is about 175 million Kilograms, but custom statistics show tea

import of 105 million kilograms. According to the estimates, 70 million kilograms tea is

being smuggled in Pakistan through illegal channels.

Of the tea sold in Pakistan, 55% is unbranded or in loose form. 85% of this is based on

smuggled tea. The players in the remaining 45% segment are Unilever, Tapal, Vital, and

Tetley.

16

MARKET SHARE PICTURE

Our main focus is on organized tea market. Where different companies like UNILEVER

and TAPAL are holding the main market share. Some other companies also present in the

market but having very low share of the market.

Unilever Pakistan limited has 43% market share.

Tapal private limited has 41% market share.

Vital tea limited has 6% market share.

Tetley has 4% market share

The remaining 6% belongs to other market share in the organized market.

0%5%

10%15%20%25%30%35%40%45%

UnileverTapalVitalTetleyOthers

Unorganized market also captures a good market share in the total tea market of Pakistan.

55% is of unorganized tea.71% of total population of Pakistan are living in rural areas.

Due to illiteracy and lack of awareness they are consuming unorganized tea which is

mainly affecting the organized tea market. Due to this they are enjoying a very big

market share of the total tea market.

Organized segment mainly depend on the imported tea. Mainly big players are importing

tea from different countries like Kenya, UK, and Bangladesh

17

Future Outlook & Trends:

Tea industry is a growing industry in the world. In the most countries like Pakistan, the

tea is use as a second most popular beverage after water. But the market for quality tea

has unlimited upside potential for tea drinkers in this country. The market for high quality

tea is experiencing strong growth and this is expected to continue for foreseeable future.

The growth of revenue and profits for tea companies is very strong popularly.

VENTURE DESCRIPTION

Green Land Tea Manufactures, unlike a typical company, provides a unique form for

taste and high quality tea within no time. Green Land Manufacturers is the answer to an increasing demand for quality tea in shortest time.

Product:

Instant Tea

The Instant Tea is basically a ready to use tea with all the required quality ingredients

(tea, powdered milk, powdered sugar) with different flavors, just put the teabags into the

hot water and your refreshing hot tea is ready.

Size of Business:

We would start of our business at a normal scale so that in the start we will be able to

know market circumstances and reactions shown by customers.

Giving the customers what they want and they will dig deep into the packets.

We dont want to crash into the market but we will slowly grow through word-of- mouth

and other means.

18

Background of Entrepreneurs:

We are basically 9 ambitious persons to start this venture, each person would participate

in particular area to run this enterprises and to provide finances for the purpose. A brief

introduction the entrepreneurs involved in establishing Green Land Manufactures is as

follows:

M. Yaseen Tahir: He is an extrovert person with a special quality to convince people, he

is just to complete his Master in Business Administration with major in Finance.

M. Rafique : He has good analytical skill and sense of humor. He is also about to

complete Master in Business Administration with major in Finance.

Majid Ali: With good speaking style, he is near to get is his degree of Master in Business

Administration with major in marketing.

Irfan Yasin: An introvert person, presently doing MBA in marketing.

Asma Ramzan: Doing MBA in HRM form University of Agriculture, Faisalabad. She

has good management skills, and is responsible to design management plan for Green

Land Manufactures.

Amber Gill: She is exciting lady, doing MBA in HRM form University of Agriculture,

Faisalabad. She loves to work in groups and teams. Amber has been assigned the

responsibilities of designing the management plan for our organization.

Maria Ali: She is currently doing Master in Business Administration with major in

finance from UAF. Maria got good financial knowledge, and she is capable of handling

multiple tasks at the same time.

Noor Tanveer: Belongs to a family of business graduates, she got good concepts of

business management studies. She has been given, along with the Maria Ali, the

responsibility of designing operational plan for our venture.

Ayesha Nawazish: With good problem solving attitude, she is just to complete Masters

in Business Administration with major in HRM. She is obliged with the responsibility of

designing vision, mission and conducting industrial analysis for our venture.

19

ORGANIZATIONAL PLAN

FORM OF BUSINESS:

We have formed a Partnership business.

We are 9 partners with equal rights and shares.

Responsibilities of each partner are with respect to their specializations.

It would be registered partnership.

Our liabilities and responsibilities would be the same and will work as a unit.

CHIEF EXECUTIVE OFFICER Mr. Mohammad Yasin Tahir

VICE PRESIDENT Miss. Asma Ramzan

MANAGER MARKETING Mr. Majid Ali

MANAGER FINANCE Mr. Mohammad Rafique

MANAGER PRODUCTION & QUALITY Miss. Maria Ali

MANAGER HR Miss. Amber Gill

MANAGER IT Miss. Noor Tanveer

MANAGER R&D Miss. Ayesha Nawazish

20

The Overall Management Team

MANAGER SALES Mr. Irfan yasin

ORGANIZATIONAL STRUCTURE

21

VICE PRESIDENT

PRODUCTION & QUALITY MANAGER

HR MANAGER

MARKETIINGMANAGER

MANAGER SALES

Clerical staff-ACCOUNTANTS, TYPIST, CLERKS & ASSISTANTS

R&D MANAGER

CHIEF EXECUTIVE

OFFICER

FINANCE MANAGER

IT MANAGER

Non-Clerical staff: GURADS, MESSENGERS

22

NO OF EMPLOYEES

o CEOo Vice Presidento 1 Finance managero 1 HR managero 1 Sales managero 1 Marketing managero 1 R&D Managero 1 Production & Quality Managero 1 IT Managero 5 Salesmeno 1 Cost Accountanto 2 Driverso 2 Guardso 2 Sweeperso 12 Laborso 2 Peon

Total Employees= 35

Check-signing authority: Check-signing authority is given to Mr. M. Rafique

(the Finance Manager)

23

Salaries:

In order to free up enough capital to continue operations and possible expansion, our

executive team will not receive more than a living wage salary until the product is well

into the black. We understand that as a new product we will need technical support and

legal advice; this will be currently outsourced to various consultants.

Plan to Meet Personnel Needs:

All sales for the first year of operation will be closed by the executive management

team. Starting from the second year, we will employ a Sales Associate who will handle

sales transactions. His/her compensation will be a combination of fixed salary and

commission on sales. For the purposes of financial planning, we combined the Sales

Associate's compensation into an aggregate forecast.

To be flexible in meeting the customer demand, we plan to stock a minimum amount of

product in a rented warehouse. At the beginning, all incoming product stock will be

accepted and later dispatched to customers by the company's executive team. Starting in

the second year, we plan to hire a full-time Inventory Manager to handle these tasks.

Performance Appraisal System:

Performance of the employees is continuously observed on daily basis. Employees are

appraised on weekly basis. Their appraisals send to the main head office. According to

the head office recommendations employees are rewarded.

ROLES AND RESPONSIBILITIES OF MEMBERS OF

ORGANIZATIONAL CHART

24

CHIEF EXECUTIVE OFFICER (CEO)

Major Functions:

To implement the strategic goals and objectives of the organization

To give direction and leadership toward the achievement of the organization's

philosophy, mission, strategy, and its annual goals and objectives

Reports to: Board of Directors

1. Board Administration and Support -- Supports operations and administration of

Board by advising and informing Board members, interfacing between Board and staff,

and supporting Board's evaluation of chief executive

2. Program, Product and Service Delivery -- Oversees design, marketing, promotion,

delivery and quality of programs, products and services

3. Financial, Tax, Risk and Facilities Management -- Recommends yearly budget for

Board approval and prudently manage organization's resources within those budget

guidelines according to current laws and regulations

4. Human Resource Management -- Effectively manages the human resources of the

organization according to authorized personnel policies and procedures that fully

conform to current laws and regulations

5. Community and Public Relations -- Assures the organization and its mission,

programs, products and services are consistently presented in strong, positive image to

relevant stakeholders

6. Fundraising (nonprofit-specific) -- Oversees fundraising planning and

implementation, including identifying resource requirements, researching funding

25

sources, establishing strategies to approach funders, submitting proposals and

administrating fundraising records and documentation

VICE PRESIDENT

Job Description: To provide provides strategic leadership for the development of the

service line so that a full continuum of services is created and structured in response to

customer needs (patient, payer, physician). The vice president will guide the

development of the overall leadership structure and strategic plan and create goals and

plans for quality and financial management of the service line.

PRODUCTION & QUALITY MANAGER

Develop and implement quality management strategy and plans, including resource,

systems, timescales, financials, to support, contribute to, and integrate within, the

organizations annual business plan and long term strategy. Develop and maintain

systems to establish standards relating to activities and products. Develop and maintain

systems to measure performance against established standards. Monitor performance (in

relevant areas) according to agreed standards and take necessary action to

communicate/advise/assist according to performance levels. Monitor and

inform/communicate/apply standards created/maintained by external bodies, and

integrate within internal quality management systems.

MARKETING MANAGER

Main Job Tasks and Responsibilities:

26

o manage and coordinate all marketing, advertising and promotional staff and activities

o conduct market research to determine market requirements for existing and future products

o analysis of customer research, current market conditions and competitor information

o develop and implement marketing plans and projects for new and existing products

o manage the productivity of the marketing plans and projectso monitor, review and report on all marketing activity and resultso determine and manage the marketing budgeto deliver marketing activity within agreed budgeto develop pricing strategyo liaison with media and advertising

FINANCE MANAGER

Typical activities include:

o providing and interpreting financial information;o monitoring and interpreting cash flows and predicting future trends;o analysing change and advising accordingly;o formulating strategic and long-term business plans;o analysing competitors and market trends;o developing financial management mechanisms that minimise financial risk;o conducting reviews and evaluations for cost-reduction opportunities;o liaising with auditors to ensure annual monitoring is carried out;o arranging new sources of finance for a company's debt facilities; supervising

staff;

o Keeping abreast of changes in financial regulations and legislation.

SALES MANAGER

27

Main Job Tasks and Responsibilities:

o Resolve customer complaints regarding sales and service.o Monitor customer preferences to determine focus of sales efforts.o Direct and coordinate activities involving sales of manufactured products,

services, commodities, real estate or other subjects of sale.

o Determine price schedules and discount rates.o Confer or consult with department heads to plan advertising services and to secure

information on equipment and customer specifications.

o Advise dealers and distributors on policies and operating procedures to ensure functional effectiveness of business.

o Prepare budgets and approve budget expenditures.o Represent company at trade association meetings to promote products.o Plan and direct staffing, training, and performance evaluations to develop and

control sales and service programs.

RESEARCH & DEVELOPMENT MANAGER

General tasks include:

o To monitor and evaluate project research activitieso To supervise field staff activities and ensure all reporting requirements are

adhered to,

o To promote company and project activities and capability to potential collaborators, sponsors, partners, academic institutions and the scientific

community,

o To identify sponsorship and grant opportunities and liaise with existing and potential donors

o To prepare proposals for donor funding and sub-contracts in collaboration with overseas partners and overseas paid staff

o To oversee, renew and develop in-country collaborationso To oversee dissertation students at under-graduate and post-graduate level

HUMAN RESOURCE MANAGER

28

Duties and Responsibilities:

o Administer compensation, benefits and performance management systems, and safety and recreation programs.

o Identify staff vacancies and recruit, interview and select applicants.o Provide current and prospective employees with information about policies, job

duties, working conditions, wages, and opportunities for promotion and employee

benefits.

o Analyze and modify compensation and benefits policies to establish competitive programs and ensure compliance with legal requirements.

o Serve as a link between management and employees by handling questions, interpreting and administering contracts and helping resolve work-related

problems.

o Analyze training needs to design employee development, language training and health and safety programs.

o Maintain records and compile statistical reports concerning personnel-related data such as hires, transfers, performance appraisals, and absenteeism rates.

o Prepare personnel forecast to project employment needs.o Prepare and follow budgets for personnel operations

IT MANAGER JOB DESCRIPTION

o Assists in the planning and implementation of additions, deletions and major modifications to the supporting regional infrastructure.

o Implements network security at the regional level

o Oversees the administration of the company's WAN.o Interacts with internal clients on all levels to help resolve IT-related issues and

provides answers in a timely manner.

o Builds and maintains vendor relationships and manages the purchase of hardware and software products.

o Manages the purchasing of all software, hardware and other IT supplies at the regional level.

o Ensures that company assets are maintained responsibly.

29

PRODUCTION PLAN

Plant and Machinery Required:

Distillatory,

Rotary evaporator

Vacuum dryer,

Grander,

Freeze dryer,

Colorimeter,

Water activity meter

Major Suppliers: We are getting the sugar from Local supplier, for milk powder we

have contracted with Everyday and we are importing tea from Kenya.

SUPPLIERS NAMES ADDRESS

FOR TEA Mr. JEFF KARANJA Kenya

FOR SUGAR Mr. Abid Awan Faisalabad

Mr. Shakeel Butt Faisalabad

FOR MILK Mr. Zeeshan malik Faisalabad

Mr. Tauqeer Ahmed Faisalabad

30

OPERATIONAL PLAN

The following section will identify the proposed operational plan for Green land

Manufacturers. Included are the general operating procedures, human resources,

insurance and an outline of Green land Manufacturers' operational workflow.

General Operating HoursGreen land Manufacturers intends to operate whole week from 9 am to 8pm. It will be

operational year around.

Human ResourcesOur company has 35 employees as a part of its management including the top

management. When additional human resources are needed, Green land Manufacturers

has identified the persons qualified and able to assist on a contract basis.Job

advertisements will be put in the local papers and organizations to attract a good pool of

respondents.

Insurance RequirementsGreen land Manufacturers will have to incur costs for business liability insurance. The

estimated cost for this requirement is Rs. 100,000 per year

Operational WorkflowStep 1: Green land Manufacturers, will first of all procure all required items from

different suppliers:

Main suppliers of milk will include:

Mr. Zeeshan Malik (Faisalabad)

Mr. Tauqeer Ahmad (Islamabad)

The supplier of tea will include:

Mr. JEFF KARANJA (Kenya)

The supplier of sugar will include:

Mr. Abid Awan (Faisalabad)

Mr. Shakeel Butt (Faisalabad)

31

Step 2: To provide customers with healthy product, Green land Manufacturers has

arranged the preservation of necessary items. The process of treating and handling

product is to stop or greatly slow down spoilage (loss of quality).

Common methods that will be used for preservation includes:

Drying ,

Spray drying ,

Freeze drying ,

Freezing ,

Vacuum-packing ,

Canning , etc. etc.

These methods help to preserve and to add flavors.

Step 3: Green land Manufacturers pack all the items in attractive packing:

Tea Bags

Boxes

Wrappers

It will be used as packaging material. It provides protection against tampering resistance,

and special physical, chemical effects. It also shows nutrition information on the product

being consumed.

Physical protection,

Convenience,

are the Main Objectives of packaging

Step 4: After the completion of 3rd step items will be sold to customer with the help of

our distribution channel

Step 5: As feed back is necessary for success of any business venture so Green Land

Manufacturers also will arrange the Response section for its customers. Customer

representatives compensate accordingly, like expired items will be replaced.

32

Sugar

Milk

Tea

PROCUREMENT

(Collection of Items)

PACKAGING

PRESERVATION

Freezing, Drying, & preserve.

Used To Stop Spoilage & Bacteria And To Maintain The freshness.

Sales(Through distribution channel)

Feed Back

Response Centre Receives feedback from customers

Tea Bags, Boxes, cartons, wrappers.

It Provides Physical Protection & Labels Are Act As Information transmission.

The above operational workflow is very standard, easy to understand and within

industry's norm.

The graphical presentation of the OPERATIONAL PLAN is given below

33

MARKETING PLAN ANALYSIS

MARKETING GOALS:

To create a strong consumer value,

To establish a wide brand recognition through the capture of market shares in the

multi segment, and

To become the top market leader in that particular segment with the strong

research and development.

MARKET RESEARCH

As we are launching a new brand in the market there are chances of failure so for that we

have conducted a market research, prepared a QUESTIONNAIR and we went in the

certain offices and in certain locations to gather information about the responses of the

people about our product. We went into the UNIVERSTIES, PROPERTY DEALERS

OFFICES, and BANKS and in certain other locations for that we also took personal

interviews of the people in the certain markets and offices to get the information about

the customers response at our own.

QUESTIONNAIRE

1. What type of hot drink you use very often?

Tea

Coffee

Both

None

2. How much time you take in preparation of tea?

3 minutes

5 minutes.

More than 5 minutes.

34

3. What would be your reaction if the tea be prepared in few seconds?

Like such a tea.

Dont like such a tea

No idea

4. Would you like to switch on to another brand of tea if new brand provides better taste

with easy and time saving preparation?

Yes

No

5. How many cups of tea you usually take in a day?

1 cup

2 cups

3 cups

More than 3 cups

6. What is your taste in tea?

Strong

Medium

Light

7. What do you consider the most while choosing your tea?

Taste

Brand name

Availability

8. To which attribute you give more importance?

Taste

Brand

Price

Quality

9. If a tea is introduced in the teabag form where you just have to dip that

in hot water and tea is ready what will be your response?

Will buy such a tea

35

Wont buy such a tea

No idea

10. If a tea is introduced in the teabag form with different flavors like chocolate,

strawberry, mango etc then what will be your response?

Like such a tea.

Dont like such a tea

No idea11. According to you, what medium should a Tea Company use more frequently to

advertise itself?

Television

Billboards

Newspaper

Radio

Fashion or Business Magazines

Others________________

12. Income per annum?

15,000-20,000

20,000-25,000

25,000-35,000

Above 35,000

Dependent

13. In which category you stand?

Children

Young

Middle Age

Old people

14. Gender

Male

Female

15. Occupation

36

Households

Property dealers-other offices

Students

RESULT OF QUESTIONNAIRE

FEEDBACK

o We found a positive response from everywhere in the market as well as in the offices.

o Everyone was found eager to welcome this new idea and product. People are short of time and it is not less than a gift in their busy routine lives.

o Especially office workers were in need of such product which is prepared in just no time.

o People are ready to pay more for quality products.o They literally said to us that we were in the need of such a product to come in the

market.

37

SEGMENTATION

Based on three bases:

Demographic.

Psychographic.

Behavioral Style

Demographics Segmentation

Age Above 18

Gender Male and Female

Family Size Average

Family Life Cycle Young

Income Rs. 20,000 and above

Occupation Professional, Managers, Students, Clerks etc

Psychographics Segmentation

Social Class: Working Class, Upper Middle, Lower Upper, Upper

Life Cycle: Fast, Struggle, Always short of time.

Personality High Society, Ambitious

Behavior Segmentation

Occupations Regular Occupation

Benefits Quality and Time Consuming

User Status Regular User

38

Readiness Stage Intending to buy

Attitude towards Product Positive

TARGET MARKET

Green Land Manufacturers customers can be divided into three groups.

The first group is familiar with the quick time concept and desires a progressive and

inviting atmosphere with their offices and workplace where they can enjoy a delicious

cup of tea with in few seconds. This group is made up of business people from different

offices and professional centers means people in Corporate Level.

The second group is not familiar with quick time tea concept. This group is made up of

seniors from the different retirement centers. Seniors represent a growing segment of

tea users. They use the tea with friends and family and they will be regular users of the

Instant Tea.

The third group is somehow familiar with this concept. This group is made up of

students. They represent the young segment of tea users. They use the tea during their

studies to refresh themselves and they will be regular users of the Instant Tea.

SIZE OF MARKET:

On the basis of our research and on demographic studies conducted in the city of

Faisalabad, about 15,000 people our target market in first year then 16500 in the 2nd

year (10% increase) and in third year 18150. This would consist of individuals between

the ages of 28 and 65, male and female, with high disposable income, employed as

professional businesspersons or office staff.

39

There is a potential to reach an additional customers who work on the fringe of this area

and may not directly pass our office on a regular basis. This secondary market may be

penetrated through advertising, word of mouth and distribution of marketing literature.

Positioning Statement

For busy, mobile people whose time is already at a premium, but desire a refreshing,

high quality beverage.

Positioning: Time Saving

MARKETING MIX

We have focused also on 4 Ps of marketing in our project to launch new tea. 4 Ps mean

a mix of:

PRODUCT

PRICE

PLACEMENT

PROMOTION

PRODUCT:Tea bags including all needed quality tea ingredients which includes world class tea

leaves, fresh milk powder, moderate sugar and different flavors.

Product Line Length:

In start our product line will include:

With high sugar and milk

Regular

With light sugar and milk

With Canderal

40

Brand ElementsSlogan:

Ready when you want

Brand Association:

Princess Fairy Cartoons

Logo:

Insignia:

41

Packing:

Tea in the form of teabags that is ready to take form with good and attractive packing.

Primary Packing; Poly Tea Bags

Secondary Packing; Box

Labeling

Ingredients:

Kenya Danedar Tea.

Every Day Dry Milk

Powdered Sugar.

Powdered Canderal

Recipe of tea:

Bring 100ml water boil.

Put 1 teabag in a cup.

Pour boiled water into the cup.

42

Allow infusion for 2-3 minutes.

After 2-3 minutes, dip tea gag in the cup 8-10 times and your tea will be ready.

Instant tea made from 4.3 grams of tea, 10 grams of milk and 2.7 grams sugar in 100ml

of fresh boiling water.

Nutritional Information:

Calories: 73

Total Fat: 2.4g

Carbohydrates: 12g

Protein: 1g

Instructions:

Store in a cool dry place away from direct sunlight.

Date of MFG & Date of EXP

Contact:

www.greenlandmanufacturs.com

PRICE

PRICE OF THE PRODUCT:

Price per teabag is Rs.10 whereas,

43

Price per Box is Rs.300 (contains 30 teabags)

PRICE PER TEA BAG:

Packing price per tea bag Rs. 0.50

Price of tea (4.3 grams) Rs. 1.00

Price of powder milk (10 grams) Rs. 1.50

Price of powders sugar (2.7 grams) Rs. 1.00

Total cost: Rs. 4.00

Gross Profit per teabag: Rs. 6.00

Retail price: Rs.10.00

\

PLACEMENT OF PRODUCT

Location:We have chosen the location for our business in the Faisalabad. In Faisalabad the shop

number is 55/C Batala Colony main road and in Shaheen Chok Saddar Bazaar Gulam

Muhammad Abad the shop number is 165 Commercial Market. Both shop size is of 20

by 20. This is enough for us to store our imported material and to use it as sales outlet

initially.

Placement is the 4th element or P in the four Ps of the marketing and it is very

important as it helps the businessman to bring product into the market. Also it is very

difficult decision to select an appropriate location. We have also worked on this element.

44

Pricing StrategyThe pricing will be comparable to the competition, but with the value-added

feature of immediate, drive-thru service and convenience

DISTRIBUTION CHANNELS

Manufacturer ------ Distributor--------- Retailers--------- Consumer

As Every Day is our partner, they supplied as powdered milk so we can also use their

distribution channel and has an agreement with the different distributors to deliver our

products to the final customers. Our distributors are focusing on the areas where there are

opportunities like bank square, commercial zones, small companies etc with in

Faisalabad. We are targeting these areas because our most of the target market is the

working class. The areas which the distributors are covering are as under:

D-Ground Faisalabad

Rail Bazaar Faisalabad

D type Colony Faisalabad

Millat town Faisalabad

Now the question comes that how our distribution channel works. Firstly we assemble the

product which we get from our source like tea, milk powder and sugar in the bulk to our

distributors. Then the order is placed by the customers to the distributors about their

required demand. After that the distributors set the order according to customers required

demand.

We will use several distribution channels according to the need of the time and nature of

the market. Whenever we will enhance our distribution channel it will also increase our

cost on the sale of the product as we will have to pay several. Intermediates involved in

the process of the distribution. So, we will keep our distribution cannel simpler in the

start of our business.

But as certain Offices are our target market, thats why, our representative distributors

will continuously make delivery in the banks and other offices. We will hire such a

45

person for this job who would have relationships in certain offices and who can convince

them to use our product.

In start of our business we will open our business outlet store in the almost centre of

Islamabad and Rawalpindi where the imported tea and powdered milk will be stored and

after the filling and packing process our tea would also be sold over there initially. At this

initial stage our distribution channel would be as:

MANUFACTURER DISTRIBUTORS CUSTOMERS

PROMOTION

We believe that it is not enough to have good products just sold at attractive prices. To

generate sales and profits, the benefits of products have to be communicated to

customers.

Our Promotional Mix will be based on the following things:

Web promotion.

Advertisement.

Billboards.

Newspapers.

Broachers and Posters.

Cloth Banners.

46

Distribution Strategy

Our representative distributors will continuously make delivery in the banks and

other offices in the city

Among all of these blends of promotional mix we will be focusing at most on the

Advertising blend. Other blends will be used whenever we would find any situation in

which they might be helpful to us.

OBJECTIVES OF PROMOTION

We will have several objectives of promotion which we will use to make our product

accepted. Those objectives might be:

To Inform:

As we are launching a new product in the market so we will promote our product in a

way that our customer might know about our product to be existed in the market

Persuade:

We will create a perception about our product in the minds of the customer that our

product is superior to the products currently available in the market.

Image Creation: By promotion we will create an image in minds of the customer that our

product is different than others in the market.

Reassurance:

We will also promote to make customer reassure that he/she has made right decision to

buy our product. We might use several blends of the promotional mix while creating my

promotional strategies like direct selling, advertising, sales promotion etc.

Advertising:

Through advertising we will try to deliver our most persuasive possible selling message

to the right audience at minimal cost we can have.

PROMOTIONAL MIX

47

PROMOTION MIX

Promotional Mix will be based on these elements as discussed under:

Word Of Mouth: It is a personal communication about product between target buyers

and neighbors, friends, family members and associates. It is a very effective strategy in

which we plan to use word of mouth to introduce our product and also the benefits of our

product to the customers.

Advertising: We will use advertising to communicate our product into the market

through "prime media": i.e. television, newspapers, magazines, billboard posters, radio,

etc. Our advertising would be intended to persuade and to inform.

Direct Marketing: Through direct marketing we shall create direct relationship between

us and our customers.

Personal Selling: We will also use personal selling technique to make our product sell.

For that we will hire people on commission who will communicate with people and try to

manage sale of our product.

Sales Promotion: We will offer certain incentives to our customers to increase the sales

volume of our business such as coupons, extra quantity etc.

48

RISK ASSESSMENT

Green Land Manufacturers although free from any direct competition, has a very low

barrier to entry. But there are certain risks which can affect the overall value of a

business. In order to ensure that a current business owner receives the best value for

their company, it is important to take certain steps to avoid sale delays, obtain the

necessary resources to help the sales process along and retain the help of knowledgeable

professionals in areas where they are needed.

Financial Risk

Risk which affects the overall value of a business with regard to the sale thereof has a

lot to do with the lack of resources. Unlike corporate counterparts, smaller business

owners do not have attorneys, accountants and financial advisors at the back and call

who can aid them in the sale of the business.

Competitors: Possible Competitors are global leaders so they have more technology as

compared to us.

Management Team Conflicts: There may be conflicts due to so many people in the

management.

People Risk: In the future may be the trend and demand of the consumer changes.

Technological Risk: This is the era of rapidly advancements in the technology as the

technology is being getting cheap and cheap day by day it is possible that in future we

might have number of competitors.

49

FINANCIAL PLAN ANALYSIS

IMPORTANT FACTORS FOR THE PROJECTION

Sales are the most dominant fact in the construction of the financial statements. Our sale

is Rs.84496165 in the 1st year and it is calculated on the basis of following factors.

On the basis of previously designed marketing plan.

Stable environment of tea industry.

On the basis of our prices.

On the basis of advertisement and product promotion.

Market research study.

50

ASSUMPTIONS

Financing needed is 1,000,000 PkR of which 0.6 Million PKR is personal

financing and 0.4 Million PKR is Debt Equity.

We have 35 employees & total compensation paid to them will be 450,000.

In 2nd & 3rd year, the sales are expected to grow 10% per year.

The aggregate cost of goods sold is assumed to be 40% of the sales.

Fire insurance policy amounted to 100000 will be taken for safety purposes.

Interest on bank loan will be paid every month & interest rate is assumed to 8%

2010 2011 2012Rupees Rupees Rupees

CAPITAL AND RESERVES

Share Capital 60,00,000 66,00,000 7,260,000

Accumulated profit 9,00,000 9,90,000 10,89,000

NON-CURRENT LIABILITIES

Balance Sheet(PROJECTED)As on June 30, 2010-12

51

Long-term finances 40,00,000 44,00,000 48,40,000

CURRENT LIABILITIESElectricity bills outstanding 100,000 1,10,000 1,21,000

Outstanding salaries 4,50,000 4,95,,000 5,44,500Accounts payable 7,00,000 7,70,000 8,47,000

Provision for taxation 125,000 1,37,500 1,51,250Rent outstanding 1,25,000 1,37,500 1,51,250Short Term loans 3,00,000 3,30,000 3,63,000

Total 1,27,00,000 1,39,70,000 1,53,67,000

2010 2011 2012Rupees Rupees Rupees

NON-CURRENT ASSETS

Property, plant and equipments

84,00,000 92,40,000 1,0164,000

DEFERRED COST

Advertisement 5,20,000 5,72,000 6,29,200Registration fees 4,80,000 5,28,000 5,80,800

52

CURRENT ASSETS

Stock 20,00,000 22,00,000 24,20,000Advances and receivables

280,000 3,08,000 3,38,800

Cash and bank balances

10,20,000 11,22,000 12,34,200

Total 1,27,00,000 1,39,70,000 1,53,67,000

2009 Projected 2010

Projected 2011

Rupees Rupees Rupees

Sales 33,00,000 36,30,000 39,93,000

Cost of Sales 15,97,200 17,56,920 19,32,612

Gross Profit 17,02,800 18,73,080 20,60,388

Admin & selling expenses

1,50,000 1,65,000 1,81,500

Rent 1,25,000 1,37,500 1,51,250Insurance 1,00,000 1,10,000 1,21,000

Profit Before Tax and Interest

13,27,800 14,60,580 16,06,638

Finance Cost 3,20,000 3,52,000 3,87,200

Profit / (loss) 10,07,800 11,08,580 12,19,438

Income Statement(PROJECTED)For the Period ended June 30, 2009-11

53

before taxation

Taxation 1,078,00 1,18,580 1,30,438

Profit / (loss) after taxation

9,00,000 9,90,000 10,89,000

Accumulated profit carried

forward

9,00,000 9,90,000 10,89,000

Cash Flow Statement (projected)For the period ended June 30, 2009

2011Rupees

CASH FLOW FROM OPERATING ACTIVITIES

Profit / (loss) before taxation 10,07,800

Adjustments for:Depreciation 5,00,0

00Finance cost 3,20,

000 18,27,800

Changes in working capital(Increase)/decrease in current assets: Stock and stores (2,00,000)Advances and receivables (28,

000)

Increase/(decrease) in current liabilities:

54

Accrued and other liabilities 180,000 (300,000)

Cash generated from (used in) operations (8,60,000)

Payments for:Finance cost (3,20

,000)Income tax (1,07

8,00)

Net cash inflow/(outflow) from operating activities

4,27,800

CASH FLOW FROM INVESTING ACTIVITIES

Fixed capital expenditure (476250

0)

Preliminary expenses (10,00,000)

Net cash inflow/(outflow) from investing activities

(57,62,500)

CASH FLOW FROM FINANCING ACTIVITIES

Long-term finances 40,00,000

Share Capital 60,00,000

Net cash inflow/(outflow) from financing activities

1,000,000

Net increase/(decrease) in cash and cash equivalents

780,000

Cash and cash equivalents at beginning of the year

(5,00,000)

Cash and cash equivalents at end of the year 11,22,000

55

Statement of Changes in Equity (projected)For the period ended June 30, 2009

Share capital

Accumulated profit / (loss)

Total

Rupees Rupees Rupees

Balance as on July 1, 2008 60,00,000

9,00,000

69,00,000

Net profit for the year ended June 30, 2008

-

-

-

Balance as at June 30, 2009 6

0,00,000 9,00,000

69,00,000

Ratio Analysis

GREEN LAND MANUFACTURED LIMITED

RATIOS ANALYSIS 2009Rupees

PROFITABILITY RATIOS

Gross Margin% (Gross Profit / Net Sales) 51.6%Net Margin % (Net Profit / Net Sales) 27.2%Return on Assets% (Net Profit / Total Assets) 7.69%Return on Equity% (Net Profit / Equity) 13.04%

ACTIVITY RATIOS

Inventory turnover (Cost of Goods Sold / Inventory) 0.7986timesReceivable turnover (Sales / Account Receivable) 11.78

56

Payables turnover (Cost of Goods Slod / Accounts Payables) 8.8Assets Turnover (Net Sales / Total Assets) 25.98%Fixed Assets Turnover (Net Sales / Fixed Assets) 0.38

LIQUIDITY RATIOS

Working Capital (Current Assets - Current Liabilities) 15,00,000

Current Ratio (Current Assets / Current Liabilities) 1.83Quick Ratio (Current assets less Inventory & Prepayments / Current Liabilities) 0.723Cash Ratio (Cash+Marketables Securities / Current Liabilities) 0.57

LEVERAGE RATIOSDebt to equity ratio (Total Debt / Total Equity) 0.60Debt to capital employed (Total debt / Total assets) 0.32

Capital Budgeting57

Capital budgeting for 15 years

Initial investment = Rs. 10 millions

Discount Rate = 13% n = 3 years

It is assume that cash flows will increase by 10% every year.

58

Years Cash Flows Discount at 13% Present Value2010 900000 0.8850 796500.002011 990000 0.7832 775392.752012 1089000 0.6932 754844.842013 1197900 0.6134 734841.452014 1317690 0.5429 715368.162015 1449459 0.4805 696410.902016 1594404.90 0.4252 677956.012017 1753845.39 0.3763 659990.182018 1929229.93 0.3330 642500.442019 2122152.92 0.2947 625474.172020 2334368.21 0.2608 608899.112021 2567805.04 0.2308 592763.282022 2824585.54 0.2043 577055.062023 3107044.09 0.1808 561763.102024 3417748.50 0.1600 546876.372025 3759523.35 0.1416 532384.15

Total Present Value 10499019.97

10499019.97-10000000 = 499019.97So NPV is Positive Project is accepted

IRRYears Cash Flows Discount at 18% Present Value

2010 900000 0.8475 762750.002011 990000 0.7183 711073.692012 1089000 0.6087 662898.452013 1197900 0.5159 617987.082014 1317690 0.4372 576118.452015 1449459 0.3705 537086.432016 1594404.90 0.3140 500698.822017 1753845.39 0.2661 466776.482018 1929229.93 0.2256 435152.372019 2122152.92 0.1912 405670.802020 2334368.21 0.1620 378186.602021 2567805.04 0.1373 352564.462022 2824585.54 0.1164 328678.222023 3107044.09 0.0986 306410.272024 3417748.50 0.0836 285650.972025 3759523.35 0.0708 266298.12

Total Present Value 7594001.18

7594001.18 - 10000000 = (2405998.82)

IRR 13.87%0.13 + (499019.97/499019+2405998.82)(0.18 - 0.13)

IRR=Low Discount rate + (HNPV/HNPV-LNPV)(HDR - LDR)

Net Present value = Total Present value - Initial investment

Net Present value = Total Present value - Initial investment

59

CONTINGENCY PLAN

Green Land Manufacturers will need to rely on its quality of service and being

first in the market to protect its market share. For this we do extra ordinary promotional

efforts to make consumers aware of our product, to create a positive image of our

product and to have maximum of loyal customers

Continuous efforts to research trends to meet consumer demands.

To get an edge over competitors we differentiated, bring variation in products.

So we must be prepared in a nice, attractive package in order to have the best positive

value. A company which is under great management sees good profits on the market

and is a good purchase opportunity overall will yield the best selling price.

HARVESTING STRATEGYExit Strategy

If we face any hurdles or crisis in future business then we will adopt Joint Venture with

TAPAL Tea (Pvt) Limited because our share remain in business and we will got a strong

shelter which already has a strong image in Pakistan.

Insurance

Our insurance company will provide a strong back up in case of business closing or

changing its shape. As above it is mentioned that joint venture is an exit strategy in case

of that our insurance company will pay full banks loan.

Finance

As our finical plan shows that our sales forecasting and our Owners Equity is a backup

of us in case of any crisis.

Employees

We signed a contract with our employees of 6 months. So in case of any serious

conditions we can fire any employee our employees.

60

AppendixMARKETING PLAN APPENDIXOur Advertising campaign will pass through five stages

STAGE 1: SETTING THE ADVERTISING OBJECTIVES

We would have specific objectives regarding our advertising campaign which we would

feel the need of the time at the time we shall start our advertising. Our advertising

objectives will fall into three main categories:

TO INFORM e.g. to tell customer about my product and its features.

TO PERSUADE e.g. to encourage the customers to switch to a different andbetter

brand.

TO REMIND e.g. to remind the buyers that where they can find my product in the

market.

STAGE 2: SETTING THE ADVERTISING BUDGET

As we are launching a new product in the market, thats why, in start we would need

heavy investment on the advertisement because we first will have to create an image in

the minds of our potential customers. We not consider advertisement as our expense but

investment. For such a heavy investment we would also need heavy budget. We would

set our budget and would make required calculations before starting the advertisement

campaign and will conduct feasibility study.

When in the future we would be launching new product lines then our advertisement

budget would not be much heavy because at that time our image would have been created

in the minds of our potential customers and they would just welcome my product. We

would have to just inform them at that level that we have enhanced our product line.

Advertisement for that will not have heavy budget. But we will also calculate it before

time.

It would be really difficult for us to judge before time that how much expenses we would

have on the advertising campaign. For that, we shall use a rule-of-thumb"

61

(e.g. advertising/sales ratio) as a guide to set the budget. Means we shall estimate our

sales or would see sales of previous years and would spend on advertisement with respect

of the sales volume of particular product.

STAGE 3: DETERMINING THE KEY ADVERTISING MESSAGES

We believe that blindly spending on advertising do not guarantee success.

More important is your advertising message that your aim is to deliver to the customer.

Advertising must be done in a manner that your target customers must be addressed and

for that no heavy advertisement is required as such. We would also focus on carefully

designed message and not on such spending over. Our advertising message would have

the following characteristics:

MEANINGFULL: Our advertising message would be meaningful and customer

would feel it to be relevant.

DISTICTIVE: It would be designed in a manner that can attract the customers or

minimum can get their attention.

BELIEVABLE: Our advertising message would seem to be believable and not such

that customer feels just impossible to be. It is really a difficult and challenging job to

create such an advertising message but we have worked hard on it and would manage it.

STAGE 4: DECIDING WHICH ADVERTISING MEDIA TO USE

There are the varieties of advertisement Medias from which we can make

selection. But we would use such a media or media mix which would be more

appropriate for advertisement of our specific product. We would see the key factors while

choosing advertising media include:

RESEARCH: We would do research that what proportion of our target customers will

be exposed to our advertising message.

FREQUENCY: Research will also tell us about the frequency or number of times our

target customers will be exposed to my advertising message?

MEDIA IMPACT: We would also see that which media would be appropriate for our

product to be advertised which would have much impact on the customer. For example,

62

television ads or billboards or newspaper ads, which would be better for advertising our

product that will have more impact?

We would probably use the following medias for my advertising whichever we would

feel the need of time and my product to be advertised:

Television

Radio

Billboards

Transport

Direct mailing

Mail Promotion

Which Media we will use in the Start

We will use the strongest media of NEWSPAPER and CABLE in start of our business

and launching the product as the newspaper is read by most of people in our community

and cable is now days very common in the homes and shops of the customer. Thats why

I have selected such a media and it will help the customer to be familiar with our product

STAGE 5: EVALATING THE RESULTS OF THE ADVERTISING

We would also evaluate our advertising campaign on the routine basis and it will focus

on two key areas:

COMMUNICATION EFFECT: We would see whether the intended message is being

communicated effectively and to the intended audience?

SALES EFFECT: We would also see whether our campaign has generated the

intended sales growth. This area is much more difficult to measure but would be

beneficial for us to measure.

63

BUDGET FOR MARKETING MIX::

We will use percentage to sale method to set our promotion mix budget which percentage

would be changed according to our share in the market.

CREDIT & DISCONT FACI

CREDIT FACILITY

Company would be providing credit facility for purchasing products of worth Rs.300,

000/-. Such credit facility would be provided for a maximum period of three months. In

this way company can get more control over distributors

DISCOUNT FACILITY

5% Discount will be given to wholesalers. If they purchase bulk of 10000 Packs. 2%

Commission will be given to wholesalers.

64

Partnership Agreement

This Partnership Agreement is made on 31 May 2010 among Nine Partners of Green

Land Manufactures.

Name and Business

Parties hereby form a partnership under the name of Green Land Manufactures to

produce Instant Tea. The principal office of the business shall be Saddar Bazaar Gulam

Muhammad Abad shop # 165 commercial market.

Term

The partnership shall begin on 31 May 2010, and shall continue until terminated.

Capital

The capital of the partnership shall be contributed in cash by the partners as follows:

A separate capital account shall be maintained for each partner.

Neither partner shall withdraw any part of their capital account.

Upon the demand of either partner, the capital accounts of the partners shall be

maintained at all times in the proportions in which the partners share in the profits

and losses of the partnership.

Profit and Loss

The net profits of the partnership shall be divided equally between the partners and the

net losses shall be borne equally by them. A separate income account shall be maintained

for each partner. Partnership profits and losses shall be charged or credited to the separate

income account of each partner. If a partner has no credit balance in their income

account, losses shall be charged to their capital account.

Salaries and Withdrawals

Neither partner shall receive any salary for services rendered to the partnership. Each

partner may, from time to time, withdraw the credit balance in their income account.

65

Interest

No interest shall be paid on the initial contributions to the capital of the partnership or on

any subsequent contributions of capital.

Management Duties and Restrictions

The partners shall have equal rights in the management of the partnership business, and

each partner shall devote their entire time to the conduct of the business. Without the

consent of the other partner neither partner shall on behalf of the partnership borrow or

lend money, or make, deliver, or accept any commercial paper, or execute any mortgage,

security agreement, bond, or lease, or purchase or contract to purchase, or sell or contract

to sell any property for or of the partnership other than the type of property bought and

sold in the regular course of its business.

Banking

All funds of the partnership shall be deposited in its name in such checking account or

accounts as shall be designated by the partners. All withdrawals therefrom are to be made

upon checks signed by either partner.

Books

The partnership books shall be maintained at the principal office of the partnership, and

each partner shall at all times have access thereto. The books shall be kept on a fiscal year

basis, and shall be closed and balanced at the end of each fiscal year. An audit shall be

made as of the closing date.

Voluntary Termination

The partnership may be dissolved at any time by agreement of the partners, in which

event the partners shall proceed with reasonable promptness to liquidate the business of

the partnership. The partnership name shall be sold with the other assets of the business.

The assets of the partnership business shall be used and distributed in the following order:

to pay or provide for the payment of all partnership liabilities and liquidating expenses

and obligation;

66

to equalize the income accounts of the partners;

to discharge the balance of the income accounts of the partners;

to equalize the capital accounts of the partners; and

to discharge the balance of the capital accounts of the partners.

Death

Upon the death of either partner, the surviving partner shall have the right either to

purchase the interest of the decedent in the partnership or to terminate and liquidate the

partnership business. If the surviving partner elects to purchase the decedent's interest, he

shall serve notice in writing of such election, within three months after the death of the

decedent, upon the executor or administrator of the decedent, or, if at the time of such

election no legal representative has been appointed, upon any one of the known legal

heirs of the decedent at the last-known address of such heir.

(a) If the surviving partner elects to purchase the interest of the decedent in the

partnership, the purchase price shall be equal to the decedent's capital account as at the

date of their death plus the decedent's income account as at the end of the prior fiscal

year, increased by their share of partnership profits or decreased by their share of

partnership losses for the period from the beginning of the fiscal year in which their death

occurred until the end of the calendar month in which their death occurred, and decreased

by withdrawals charged to their income account during such period. No allowance shall

be made for goodwill, trade name, patents, or other intangible assets, except as those

assets have been reflected on the partnership books immediately prior to the decedent's

death; but the survivor shall nevertheless be entitled to use the trade name of the

partnership.

(b) Except as herein otherwise stated, the procedure as to liquidation and distribution of

the assets of the partnership business shall be the same as stated in paragraph 10 with

reference to voluntary termination.

67

Arbitration

Any controversy or claim arising out of or relating to this Agreement, or the breach

hereof, shall be settled by arbitration in accordance with the rules, then obtaining, of the

American Arbitration Association, and judgment upon the award rendered may be

entered in any court having jurisdiction thereof. In witness whereof the parties have

signed this Agreement.

Executed this from 1st day of business, 2010 in Faisalabad, Pakistan.

Signature of all partners ________________________

68

Pricing StrategyDistribution StrategyOur representative distributors will continuously make delivery in the banks and other offices in the city Salaries:PRODUCTION & QUALITY MANAGER IT MANAGER JOB DESCRIPTIONPositioning Statement