Proposals for business project

8/8/2019 Proposals for business project

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BUSINESSPROJECTPROPOSALS

SUBMITTED BY:

REHANA SHAFFI

ma-f07-mba-098


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DEHYDRATION PLANT

INTRODUCTION

The continuation of fiscal discipline, prudent monetary policy and focusing attention onbettering the infrastructure and social sector indicators clearly shows the possibility thatthe economy can maintain its long term growth trajectory. During the year 2004-2005Pakistans economy extended its impressive expansion in all three major componentsnamely, agriculture, manufacturing, services. The Real GDP grew by 8.4 percent in 2004-05 as against 6.4 percent last year and surpassed the target (6.6%) for the year by a widemargin.The growth in year 2004-2005 is supported by a healthy performance in large-scalemanufacturing (15.4%), impressive recovery in agriculture (7.5%) and a strong growth inservices sector (7.9%).One of the major contributors to this year's growth is agriculture. The agriculture sectorgrew by 7.5 percent in 2004-05, which is higher than actual growth of 2.2 percent lastyear and a target of 4.0 percent. Major crops, accounting for 37 percent of agriculturalvalue added, grew by 17.3 percent as against a mere 1.9 percent last year.Pakistan is blessed with vast agricultural resources and has one of the best irrigationsystems in the world. Pakistans economy is agricultural and agriculture plays a vital rolein the development of the country. Major crops like Cotton, Wheat and Sugar are the keyplayers.

DEHYDRATION

Dehydration offers an economical and satisfactory means to extend the shelf life ofvegetables. The main advantages of dehydration over other methods of preservation beingthat the dehydrated products are:1. Light in weight and occupy much less space than the original, frozen or cannedmaterials.2. Cheap to pack compared to tinned materials3. Stable under ordinary storage conditions.

DEHYDRATED PRODUCTS

There are a lot of vegetables and fruits which can be dehydrated. The major vegetablesand fruits which are used in world as dehydrated are as follows:

Potato Fingers / Granules/

Powder

Coriander Leaves/Powder Grape Fruit Juice Powder

Onion Powder/Flakes Capsicum Slice Lime Juice Powder

Garlic

Powder/Flakes/Granules

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Red Beet Juice Powder

Mango Juice Powder /

Slices

Ginger Powder Orange Juice Powder Mushroom Pieces

Tomato Powder Papaya Powder Mustard Leaves

Green Chili Banana Powder Mint Leaves / Powder/

Flakes

Cauliflower

Bitter Gourd (Momordica

Charantia)

Spinach Leaves

Carrot Flakes / Bits/

Powder

Curry Leaves

Pineapple Fruit Juice Powder

Cabbage Fenugreek Leaves

MARKET SUPPLY

The supply of various crops depends upon harvesting season. A good harvest will resultin large quantity of products availability in the market. In Pakistan 90% of potato crop isharvested in autumn a part of this crop is marketed fresh including both domestic andoverseas markets and part of it goes into cold storages. Potato can be safely stored up to 6

months. The stored potatoes are then gradually released during the lean crop periodsgenerally from June onwards.

MARKET SUPPLY MECHANISM

The medium used for supply mechanism of vegetables and fruits from grower toconsumer are as follows.

1. Wholesaler/Trader.2. Commission Agent.3. Pharia.

4. Retailer (Stall holder, Hawker)

MARKET DEMAND

As mentioned above the production of potato and onion increased by 7.79% and 5.01%but the production of garlic decrease by 3.06 % .due to huge demand in local market thepotato and onion market recorded inclining tendency.

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SWOT ANALYSIS:

STRENGTHS:

Following factors are the key in making the project profitable:

Regular flow of local as well as Export orders is the key success factor forefficiently running of the project.

Selection and procurement of consistent quality raw material would be anothercontributing factor for carrying out successful operations of proposed project.

Production of quality products meeting the Health Standards of International levelis necessary for Export sales.

Competitive price of end products.

Abundant supply of raw material.

Cost efficiency through better management.

Media campaign for the awareness of the retail customers.

Availability of low cost skilled labor. The main elements of export strategy are reducing cost of doing business,

Increasing market access, technology, environmental & Security Compliance,

Encouraging export-oriented foreign investment, region-specific strategy, country

& business image building and value addition.

WEAKNESSES

The major weaknesses in this field of business are:

Poor-availability of suitable processing variety of raw materials at present. Lack of in-house quality control and testing facilities in conformity with the

international standards. Lack of post harvest handling and long term storage facility.

Existing technology obsolescence.

Poor infrastructure facilities such as irregular power supply, high inlandtransportation cost and lack of cold chain facilities etc.

The other major weakness in Pakistan food industry is the lack of coherence andco-operation amongst the processors and exporters due to which the problems cannot be effectively addressed and tackled collectively.

Non Availability of properly quality raw material at competitive prices, whichfluctuate depending upon the harvesting season crop.

THREATS

The proposed project will be facing the following threat:

Competition from the local unorganized sector (cottage industry).

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Increase in International competition with China, India and Eastern Europe.

Imposition of Quality and Environment standards by importing countries.

Decline in the average sale price for Pakistani products.

Crop failure

Influence of major local and foreign brands operating in the market

Change in Government regulations WTO Agreement on Agriculture.

PROJECT SITE

Punjab is a land of diverse landscapes and natural beauty. Punjab is geographicallybounded by the river Indus in the west and by the river Yamuna in the east. Divided intonatural regions by the five tributary rivers of the Indus, It has rich agricultural land andkeeps going on exploiting its horticulture resources to the maximum. It is easy to reach towholesale markets from far flung areas.

RATIONALE & JUSTIFICATION

Almost all vegetables, especially, Potatoes, Onion, Garlic, Tomatoes and Chilies etc. areavailable in the market. Dehydrated vegetables have long shelf life subject to high qualitypacking from 8 to 12 months. Current demand-supply indicates potential of good qualitydehydrated vegetables in international markets with proper marketing arrangements.There is a big export potential for these products in overseas countries especially Europe,Japan, United States and Middle East. Other includes

Surplus or raw material

Different harvesting seasons

Price of vegetables

Export potential

Shelf Life

Storage

Benefits of farmer

ESTIMATED PROJECT FINANCING

The estimated cost of the project is Rs.27.454 million including the working capital of Rs.1.25 million. The project will be based on 50% equity by Sponsors and the remaining50% will be financed by the Bank Loan. The proposed equity participation includes:

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% Rupess

Equity Contribution by Sponso 50% 13,727,000Loan Bank 50% 13,727,000

Total Capital including land 100% Rs. 27,454,000

LOCATION (GUJRAT)

Gujrat region is rich in horticulture. Gujrat has been established as one of the big marketsfor horticulture products grown in surrounding districts. The following are the importantfactors, which determine the viability of the Dehydration Plant at Gujrat.

Availability and supply of desired quality raw material.

Sufficient supply of electrical power.

An ample supply of water.

Adequate facilities for effluent and waste disposal. Availability of suitable labour and technical staff.

Access to transportation facilities.

Proximity to proposed collection point of Lahore including whole sale Market,Cold

Storage, Pulp plant, sorting, cleaning, grading & packing.

The most important factor is that Lahore has flow of vegetables from neighboringdivisions/districts like Gujranwala, Lahore, Faisalabad, Sheikhupura, Sargodha,Jehlum. The availability of quality raw material is possible and plant will be located nearto main vegetable market along with facilities of utilities, fuel, transportation and waste

disposal.

LAND

Keeping in view the proposed capacity, approximately eight (8) Kanals of land i.e. thirtysix thousand (36,000) square feet is sufficient to set up the Dehydration Plant. An amountof Rs.4,000,000 has been allocated for the acquisition of eight (8) Kanals land in the areaof Gujrat. However, cost of land may vary according to location.

MACHINERY AND EQUIPMENT

The machinery, equipment and accessories required for dehydration of vegetables plant atLahore is fabricated locally. Most advanced technology for drying parameter control, beltcontrol and belt structure is also used. For this purpose international suppliers are alsoavailable to produce finished products confirm to national as well as internationalstandards.

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ADVERTISING AGENCY

ADVERTISING:

Advertising, generally speaking, is the promotion of goods, services, companies andideas, usually performed by an identified sponsor. Marketers see advertising as part of anoverall promotional strategy. Other components of the promotional mix include publicity,public relations, personal selling, and sales promotion.Advertising involves the process where in a massage is designed so as to promote aproduct, a thought, an idea or even a service. The concept of advertising has assumed a

dynamic form with the use of the various mediums of communication.From the newspaper, magazines, posters, neon and fluorescent signboards, billboards tothe commercial on TV, laser shows to inflated high-rise figures and objects, advertisinghas come a long way. The work is formidable as it spearheads a process intended toattract, modify, change and influences public opinion.From the local business to multinational firm and all need to advertise. While politicians,social organizations, government special groups need to advertise their motto, nationalairlines, auto mobile manufactures, food and consumer goods manufacturers have toreach the consumer. Specialist products and services are often advertised through trademagazines and exhibitions. Lately mail-shots, handbill circulation, special offers havebecome very popular. There are still other ways of advertising. There are window

displays, display on telephone directories, transit sign on buses, lamp posters, banners,etc. Advertising through the electronic media has been perhaps the most popular medium.Advertising, as an effective medium, uses a variety of techniques to create effectiveadvertisements. A basic appeal is at the heart of advertising. Slogans and productcharacters are created to catch the attention of the viewers. Most winning advertisementswould encompass factual information with emotional appeal. The advertising industry hasthree major sectors.

Business or organization which wishes to advertise,

Media which provides the medium for advertising and

Ad-agency which creates the ad to suit the need of the firm.

Ad agencies vary in the size and turnover. Nevertheless the process of creating an adremains the same. The annual expenditure on the advertising has been to the tune of Rs8000 crores and the figure could be higher. USA has projected media spending onadvertising on the net to approximately $7700 by the turn of the century.The scope for advertising professionals certainly shows an upward trend.

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An advertising agency or ad agencyis a service business dedicated to creating, planningand handling advertising (and sometimes other forms of promotion) for their clients. Anad agency is independent from the client and provides an outside point of view to theeffort of selling the client's products or services. An agency can also handle overallmarketing and branding strategies and sales promotions for its clients. Typical ad agency

clients includebusinesses and corporations, non-profit organizations and governmentagencies. Agencies may be hired to produce single ads or, more commonly, ongoingseries of related ads, called an advertising campaign.

THE FUNCTIONS OF ADVERTISING AGENCY:

To accelerate economic growth and create public awareness

To provide a total, professional, experienced service which is very personal in itsnature

To take the advertiser's message and convert it into an effective and memorable

communication

THE BENEFITS OF USING AN ADVERTISING AGENCY:

Added Expertise

Media Knowledge and Unbiased Advice

Easier Administration

Media Buying

Quality Control

Information

Fending off the media And when things go wrong

Cost Saving

Time Saving

ADVERTISING AGENCY'S ROLE:

Suppose you are a company with a product. It may be a totally new product.As a company with a product or service to sell, designing and making that item is onlypart of the battle. People are not going to beat a path to your door. You have to seek achannel of communication.

SERVICES OFFERED BY AD AGENCY:

Total Advertising Services:

Strategic planning, creative development and media services for advertising, particularlyin television, newspapers, magazines and radio; providing the best creative designed tocapture the imagination of consumers

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Marketing Services:

Provision of a number of advertising related services, including sales promotion, marketresearch, PR and event marketing.

E-Solution Services:

E-solution services, including system integration services, e-business consulting andcustomer relationship management (CRM), Search Engine Marketing(SEM) and Search Engine Optimization (SEO) and e-promotions using the Internet andmobile.

Content Business:

Sales of sponsorship, broadcasting and other rights, and the production and marketing ofsuch media / content as sporting events, films, TV programs, animated content, music andother forms of entertainment.

Integrated Media Services:

Bringing value to both clients and media-related companies by offering a wide range ofmedia solution services

Sales Promotion:

Providing comprehensive sales promotion planning designed to complement mass mediaand other activities

Event Marketing:

Assisting clients by providing dynamic vehicles for their messages in the form of on-the-spot interactive communications

Integrated Branding Services:

Assuring clients the highest quality of branding services for their communication needs

ORGANIZATION STRUCTURE

The activities within an advertising agency are typically divided into 4 broad groups:account management, the creative department, media buying, and research.These divisions are usually physically separated, although all four areas work closelytogether to produce an advertising campaign in its entirety.

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Account managers usually have daily interaction with a counterpart at the client's officeand coordinate the activities of the other departments according to the client's wishes. Thecreative departmentdesigns original themes or concepts for ads, while the mediadepartmentplaces finished ads within the media in which they will receive the mostexposure to a target audience. The research departmentprovides data about consumers to

help the agency and the client make informed advertising decisions.Recently added to advertising agencies' roster of services are public relations, directmarketing, and promotional services. Other activities that used to be completed by outsidevendors, such as photography and high-tech print work, have been brought in-house inmany agencies.

DEPARTMENTS & PERSONNEL:

Account Services / Account Management

Account planner / Director

Account Supervisor

Account executives Creative department

Art Directors

Copywriter

DTP (Desk Top Publishing )Artist

Visualizer

LOCATION OF AGENCY:

Location of advertising agency will be in Gujrat because Gujrat has a big fan industry andfurniture industry.

ESTIMATED PROJECT FINANCING:

Premises Rent 240,000Furniture 210,000Renovation 600,000Working Capital 2,002,500Pre-Operating Cost 60,000Total Cost 3,112,500

FUNCTIONS OF THE MEDIA DEPARTMENT

Media Planning:

The Media Department is responsible for the preparation and the actual presentation ofthe media plan. This department recommends media and media vehicles that in theagency's opinion best fulfill the client's marketing and advertising objectives. Therecommendations are based on a careful assessment of the client's strategic requirementsand the subsequent matching against these of the various available media forms. In the

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process there is great reliance on research and the known strengths and weaknesses ofvarious media. Computer analysis is frequently used to sift through and compare all themedia audience data that is available. The final media plan will present a carefullythought out recommendation that delivers the right target group, at the right time, in theright place, with the right number of messages.

Media planners have access to up-to-date information about each advertising medium.This includes the relationship and circulation figures for news papers and magazines,viewing figures for different times of the day, listening audience figure for commercialradio stations etc. They are also aware of the various locations for hoarding andbillboards. They are a vast array of choice. There are thousands of brands to advertise thework is challenging. It is though the selection of the right media that a good mediadepartment can save large advertisers money as well as give credibility.

Media Buying:

Once a media plan has been approved by a client, it must then be purchased.The procedures for this vary according to the medium under consideration. In print media,for example, most purchases are made on the basis ofrate cards issued by variousnewspapers or magazines. In broadcast, however, negotiation is involved. The objectiveof this negotiation is quite simple - to achieve maximum media efficiencies in obtainingthe most for the least, or, in other words, the most audience for the least amount ofmoney.Media buyersbuy advertising time/space for the agencys client. The work closely withthe media planer if the two functions are carried out separately.Television and newspaper advertising are expensive. The media buyers expertise is in thenegotiating the best possible deal for the client. The commercial breaks with the mostviewers are the most expensive and so also the newspapers and magazines.

Media Estimating:

Every single purchase made by the Media Buyer must be recorded in advance of theactual running of the advertisement. This is to enable the agency to bill the client formonies spent on their behalf and to check the invoices submitted by the media. Thisdocument is called an estimate.

MARKETING RESEARCH DEPARTMENT:

Marketing research is three things:1. The identification of information needs (i.e. defining the problem)2. The systematic gathering, recording, analyzing and interpreting of data about problemsrelating to the marketing of goods and services (i.e. providing a solution to the problem)3. The analysis and evaluation of action taken on the basis of information (i.e. monitoringand modifying the initial solutions)

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CREATIVE SERVICES DEPARTMENT:

The creative services department may not be so well known, but its employees are thepeople who have contacts with the suppliers of various creative media. For example, they

will be able to advise upon and negotiate with printers if an agency is producing flyers fora client. However, when dealing with the major media (broadcast media, outdoor, and thepress), this work is usually outsourced to a media agency which can advise on mediaplanningand is normally large enough to negotiate prices down further than a singleagency or client can.In small agencies, employees may do both creative and account service work.Larger agencies attract people who specialize in one or the other, and indeed include anumber of people in specialized positions: production work, [Internet] advertising, orresearch, for example.Event Management and Promotion department

These are marketing support services which coordinate with external suppliers and use

internal resources to implement the client's plans. The work here is coordination, withspecific responsibilities being more specialized. Event management, an industry that isjust taking off in India, plans, organizes and executes live events, which could include abrand/product launch, an exhibition, a concert or even a conference.

HOW AGENCY WILL EARN REVENUE?

u 15% commission or as negotiatedu Creative feesu Fee: Fixed; Fee-commissionu Cost - plus Agreementu Incentive basedWHAT DOES AN ADVERTISER LOOK FOR IN ADVERTISING AGENCIES?

The prime consideration on the mind of an advertiser while retaining an advertisingagency is that it is able to build a brand.

u Demographics of agency, including billing

u Attitude and involvement factor

u Specific expertise required

u Past record in creatives, media

u Recommendation from others

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BUILDING RELATIONSHIPS

The Softer Aspects

1. Trust2. Honesty3. Commitment & Responsibility4. Understanding & Empathy5. Respect

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Documents

Proposals for business project