Group Members:

1) Malik Nayab Sultan 2) Abu Sufyan 3) Kamran Gul 4) Amir Ali 5) Sadaqat Hussain 6) Muhammad Nazim Aslam 7) Aman Ullah Bhatti

1. Business Description 2. Marketing: Research and Analysis Marketing Strategy 3. Operations 4. Management 5. Financial Projections 6. Critical Risks 7. Exit Strategy 8. Conclusion

Business Description
Forms of Business Owners Name of Business Business Description Product Description Gap Identification Plant and Office location

Porters Model PEST SWOT KSFs IFE/EFE Matrix Market Size Growth Potential Barriers to Growth Competitors Analysis

Porters Model

PEST ANALYSIS

SWOT ANALYSIS
Strengths
We will be the pioneer of introducing tea bag that contains Milk, Tea and Sugar.

Weaknesses
It is a major hurdle for Instant Tea to position its tea abroad in the minds of the Consumers and encourage them to indulge in brand switching.

Opportunities
One of the greatest opportunity that Instant Tea has its huge market which is increasing as the population is increasing. Tea has become a staple product in Pakistan which cannot be denied at 20 to 60 year of age.

Threats

Strong marketing campaigns of Unilever makes it extremely difficult for Instant Tea to counterattack because of low budgets.

Variety of Product

Have to import some of products from other countries, which increase costs.

Per capita consumption is almost 1kg according to a recent research in Pakistan.

Unilever as a more established brand name than Instant Tea worldwide.

Strong Team

Tight quality control procedures lead to higher costs and its time consuming and often discontent the suppliers.

Duty free import from Sri Lanka, India and Bangladesh.

Due to climatic conditions, when the weather of Pakistan is mostly hot; Consumers would prefer soft drinks over tea.

Key Success Factors:

Product Quality. We use finest tea, dry milk, sugar etc in Tea bags. Product availability. Unique brand positioning. High demand of such Tea bags in the local market. Product Development and Innovation. Emphasizing on excellent service to the other whole sellers.

Internal Factor Evaluation (Matrix)

Factors Weight Ratings Wt. Score

Strengths
innovation and the high quality pioneer of introducing tea bag Varity of product Strong team Success slogan Affective and attractive packaging Weaknesses New product Customer brand loyalty quality control procedures lead to higher costs Substitute products Substitute products Total

0.03 0.05 0.05 0.07 0.2 0.1 0.1 0.2 0.1 0.05 0.05 1

2 4 4 3 5 4 3 2 4 3 4

0.06 0.2 0.2 0.21 1 0.4 0.3 0.4 4 0.15 0.2 7.12

External Factor Evaluation (Matrix)

Factors Weight Ratings Wt.score

Opportunities Instant Tea has its huge market Duty free import Consumption of tea Threats marketing campaigns of Unilever Competitors established brand New entrant Total

0.15 0.2 0.15

3 4 5

0.45 0.8 0.75

0.15 0.1 0.25 1

4 4 5

0.6 0.4 1.25 4.25

Market Share
Unilever Tapal Vital Tea Tetlay Others Total
50% 45% 40% 35% Unilever Tapal Vital Tea Tetlay Others 30% 25% 20% 15% 10% 5% 0% Unilever Tapal Vital Tea Tetlay Others Series1

43% 41% 6% 4% 6% 100%

Growth Potential
Tea Consumption Percentage around the World:
Country India China Russia UK Japan Turkey Pakistan United States Iran Egypt Poland Australia Rest of World Total Percentage of World Tea Consumption 23% 16% 6% 6% 5% 5% 4% 4% 3% 3% 1% 0.4% 23.6% 100%

Barriers to Growth
Money Customer Raw Material New Technology Government Inference

Competitor Analysis

The first step in conducting a competitor analysis is to identify your competitors. Begin this process by considering the range of competition in your market space because not all competition is the same, there are different types of competitors your business will face. Direct competitors Our Direct competitors are strong brand which are Lipton as well as tapal tea. Indirect Competitors Our indirect competitors includes all the tea companies which are already available the market in the form of different brands like supreme, and local shops which are providing tea to customers.

Market Segmentation: Bases for Segmentation in Consumer Market: Consumer market can be segmented on the basis of the following consumer characteristics. Geographic Segmentation: World region Asia Country Pakistan Province Punjab City Lahore Density Urban Climate Hot & dry Demographic Segmentation: Age All age group Gender Male, female Family Size 1-2, 3-4, 5 above Family life cycle Married & Unmarried Income 8000 above Occupation White collar & Service workers Education School colleges & universities Religion All Race Asian Nationality Pakistani Psychographic Segmentation: Social Class Middle class and upper class Lifestyle Fulfilled, believers, experience makers, strugglers. Behavioral Segmentation: Occasion Any Occasion Benefits Quality, Taste, Flavor and Brand Status. Loyalty Status Significantly high Attitude towards brand Positive & Enthusiastic.

Marketing Strategy

Marketing Strategy
Target Market Product Description Value Preposition Unique Selling Point

Pricing Strategies
Cost Frame Willingness to pay frame Competitor pricing Frame

Pricing Details of different Tea Bags

Packages for Standard Tea Bags Tea bags Tea bags Tea bags Tea bags Tea bags 150 100 50 25 10 Price Rs. 1200 800 400 200 80 Price Rs. 1200 800 400 200 80

Packages for Hard Tea Bags Tea bags Tea bags Tea bags Tea bags Tea bags 150 100 50 25 10

Packages for Cardamon Tea Bags Tea bags Tea bags Tea bags Tea bags Tea bags 150 100 50 25 10

Price Rs. 1500 1000 500 250 100

Packages for Sugar free Tea Bags Tea bags Tea bags Tea bags Tea bags Tea bags 150 100 50 25 10

Price Rs. 1500 1000 500 250 100

Distribution strategy
Factory Salesman Retailer
Johar town Sales man Wapda town Customers

Customer
Customers

Instant Tea Bag

Iqbal town Customers Sales man

Samanabad

Customers

Defense Defense Customers Sales man Gulberg Customers

Advertisement strategy
Streamers Brochures Pamphlets Advertising Hoardings Flex Boards

Advertising Brochures
Features
       Vivid colors Magnificent designs Available in various shapes All sizes available Developed as per target audience Premium raw material used Attractively priced

Pamphlets
Customization provided on the basis of
Language Size Design

Features
Easy-to-read Attractively priced Trendy appearance

Advertising Hoardings Specialty

Innovative designs Bold display High impact text fonts used Varied eye-grabbing patterns Non-fading, rich colors

Operations and Supply Chain

Operations
Capacity Management
10,000 tea pack per day The cost and the sale price are:S# Tea Type Cost (Per Unit) 1 2 3 4 Hard instant tea Standard Instant tea Cardamom Instant Tea Sugar Free Instant Tea 6 6 8 8 Sale Price (Per Unit) 8 8 10 10 Revenue (Per Unit) 2 2 2 2

Supply Chain Strategy

Location
# 1 2 3 4 5 6 7 8 9 Details Office Security Laptop Printing expenses Telephone Bill Furniture Office Stationary Internet Machinery Fitting cost Cost 8000 30,000 6000 12000 200,000 6000 8400 800,000 100,000

Supply Chain Strategy

Logistics
One Shahzoor One driver One Helper(for load and unload)
S# 1 2 3 Name Shahzoor Driver Helper Number 1 1 1 Salary or Cost 12500 per week 15,000 7,000 Total Cost 50,000 per month 15,000 7,000

Supply Chain Strategy

Suppliers:
Dry Milk: Every Day Tea: Safi Tea Company Thread: AC Printing Master and Zari House Steppler: Raheem books Paper: Paper Store Sugar: Sheikh Store Sugar Free: Sucral.

Human Resource Management

Malik Nayab Sultan CEO

MR. Nazim Marketing Manager

Mr. Sadaqat Operation Manager

Mr. Amir Ali Managemnet Manager

MR. Kamran Finance Manager

MR. Abusufyan HRM

Mr. Aman Ullah Bhatti R&D

JOB DESCRIPTIONS AND SPECIFICATIONS

Marketing Manager
Job Descriptions
Manage and coordinate all marketing, advertising and promotional staff and activities. Conduct market research to determine market requirements for existing and future products. Analysis of customer research, current market conditions and competitor information. Develop and implement marketing plans and projects for new and existing products. Manage the productivity of the marketing plans and projects. Monitor, review and report on all marketing activity and results. Develop pricing strategy. Business or marketing-related degree or equivalent professional qualification Experience in all aspects of developing and maintaining marketing strategies Technical marketing skills Proven experience in customer and market research Relevant product and industry knowledge Excellent written and verbal communication skills Organization and planning Formal presentation skills Decision-making Stress tolerance

Job Specification

JOB DESCRIPTIONS AND SPECIFICATIONS

Operations Manager
Job Description
Coordination and Supervision - Coordinate, manage and monitor the workings of various departments. Financial - Review financial statements and data. Utilize financial data to improve profitability & Inventory Control. Production - Coordinate and monitor the work of various departments involved in production, warehousing, pricing and distribution of goods. Monitor performance and implement improvements. Ensure quality of products. Manage quality and quantity of employee productivity. Manage maintenance of equipment and machinery. Provide technical support where necessary. Strategic Input - Liaison with top management. Assist in the development of strategic plans for operational activity. Implement and manage operational plans.

Job Specification
College degree in business administration, commerce, management, industrial technology or industrial engineering. Industry relevant production experience Knowledge and experience in organizational effectiveness and operations management Knowledge of project management principles and practices Information technology skills Critical thinking and problem solving skills Planning and organizing Decision-making Communication skills Team work stress tolerance

JOB DESCRIPTIONS AND SPECIFICATIONS

Finance Manager
Job Description
Establish procedures for custody and control of assets, records, loan collateral, and securities, in order to ensure safekeeping. Evaluate data pertaining to costs in order to plan budgets. Evaluate financial reporting systems, accounting and collection procedures, and investment activities, and make recommendations for changes to procedures, operating systems, budgets, and other financial control functions. Oversee the flow of cash and financial instruments. Plan, direct, and coordinate the activities of workers in branches, offices, or departments. Prepare financial and regulatory reports required by laws, regulations. Review collection reports to determine the status of collections and the amounts of outstanding balances. Ability to devise and implement strategic development and resource plans, particularly in the areas of service development, staff development and the management of change. Ability to work on own initiative, priorities work, handle pressure and take day-to-day decisions on the running of the organization. Experience of financial responsibility for a budget. Ability to communicate effectively in person, in writing and over the telephone with individuals and with a wide variety of organizations and audiences and to research.

Job Specification

JOB DESCRIPTIONS AND SPECIFICATIONS

Human Resource Management Manager
Job Descriptions
Recruiting and staffing Organizational departmental planning Performance management and improvement systems Organization development Employment and compliance to regulatory concerns regarding employees Employee on boarding, development, needs assessment, and training Policy development and documentation Employee relations Company-wide committee facilitation Company employee and community communication Compensation and benefits administration Employee safety, welfare, wellness and health Employee services and counseling. HRM managers need a Master s degree with a specialization in HRM. In addition previous experience in this field is also necessary. Successful HRM managers require analytical, organizational, business management and communication skills.

Job Specifications

JOB DESCRIPTIONS AND SPECIFICATIONS

Research and Development Manager
Job Descriptions
It is the responsibility of an R&D manager to be fully aware of all the things that are happening especially in terms of the scientific aspect of the projects it is handling. A constant coordination between himself and the members of the other departments in the company are also important and is his main responsibility. This is to guarantee a close connection between the teams in line with the company s goals. It is his responsibility to become actively involved in the laboratory together with the scientists. Planning research process is also one of his main duties and responsibilities. There are some instances wherein the R&D Manager has to involve himself in recruiting qualified scientist for certain projects designed and scheduled by the company. Allocating funds for every project is also one of his main duties. Research and Development -related degree or equivalent professional qualification. Experience in all aspects of developing and maintaining Research and Development strategies. Technical Research skills. Relevant product and industry knowledge Excellent written and verbal communication skills Organization and planning Formal presentation skills Decision-making Stress tolerance

Job Specifications

Financial Projection

Finance
Capital Cost Proposed Financial Plan Working Capital Requirement Motors & Vehicles Furniture & Fixture Plant & Machinery Projt. Income Statement Projt. Cash Flow Depreciation Schedule Projected Sales Raw material requirement Manpower requi. Utilities Stores & Spares Gen. & Selling Exp. Payback Period Break even analysis

CAPITAL COST OF THE PROJECT

(Rs. in ,000) Description - Land Local 0 Foreign Total 0

- Building & Civil Works

- Plant & Machinery

856

856

- Errection & Installation % of P. & Machin

15

15

- Motors & Vehicles

140

140

- Furniture & Fixture

24.5

25

- Preliminary Expenses * take from Appendix-6

11

11

- Pre-production Expenses

152

152

- Intrest During Construction

- Contingencies

106

106

Fixed Capital Cost

1305

1305

Working Capital Total

1981 3286 0

1981 3286

PROPSED FINANCIAL PLAN:

(Rs. in ,000) Description Local Foreign Total

Equity
- Local Sponsors - Foreign Sponsors - Bridge Financing Total Equity 0 3286 0 3286 0 3286 0 0 3286

Loans
- Foreign Currency - Suppliers Credit - LMM - Long Term Finance - Custom Debenture 0 0 0 0 0 0 0 0 0

Total Debts

Total Investment

3286

3286

Debt Equity

% %

0 100

0 3286

Working Capital Requirement

Description

Period(Days)

Amount Rs. (000)

Raw material imported Raw material Local Work in Process Packing Material Salaries Utilities Overheads Selling & Admin. Expenses Finished Goods Inventory Accounts Recievable Advances & Deposits Cash Sub Total

0 26

0 1820 0

26

0 0

30 0 30 0 0

1 0 145 0 0 15 0 1981

Accounts Payable Short Term Borrowing @ % of stocks Sub Total

0 0 0

Net Initial Working Capital

1981

FURNITURE & FIXTURE

Description

NOs.

Value Rs. (000)

Total Rs. (000) 15 15

Computors

Chairs Executive Chairs & Tables etc. Telephones & Exchange

10 1

0.5 3

5 3 1.5

Total

24.5

BREAK-EVEN ANALYSIS
@ 100 % Production Capacity

Fixed

Variable Cost 5590 0 1831 1.56 13 114 0 2 0 19 0 54 53 1831 163 19 245 364 23

Total Cost 5590 0 1831 15 114 0 21 0 54 76 1831 408 383

DESCRIPTION
- Raw Material - Catalyst - Wages & Salaries - Utilities - Furnace /Vehicle Oil - Stores & Spares - Repair & Maintinance - Packing Material - Depreciation - Manufacturing Overhead - Admin Salaries - General Expenses - Selling, Marketing Expense

Cost

Interest On Loans:
- FCY Loan - LMM Loan - LCY loan - Short Term Loan - Bridge Financing - Debenture W.P. Fund Tax Provision 0 0 0 0 0 0 6627 26841 0 0 0 0 0 0 6627 26841

Total

37424

6368

43792

Sales Variable Cost

= =

76597.246 6368 70230

Contrib. Margin =

Breake-even Point (% age of Capacity Utilization)

53.3%

PAYBACK PERIOD

YEAR

CAPITAL OUTLAY

OPER. PROFIT

DEPRECATION

TAXES

W.P.F

NET CASH FLOW

Payback Years

Balance Net Cash Flow

3286

-3286

1 2 3 4 5 6 7 8 9 10 S. Value

45704 52606 59504 66398 66273 66144 66010 65872 65729 65580 263

54 54 54 54 54 54 54 54 54 54

18510 21305 24099 26891 26841 26788 26734 26678 26620 26560

4570 5261 5950 6640 6627 6614 6601 6587 6573 6558

22678 26094 29509 32921 32859 32795 32729 32661 32590 32516 263

0.145 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

0 0 0 0 0 0 0 0 0 0

Payback Period =

0.145

Years

Gross Profit to Net Sales

80000

70000

60000

50000 Net Sales 40000 Gross Profit 30000

20000

10000

0 1 2 3 4 5 6 7 8 9 10 11 12

Net Sales to Cost of Goods Manufactured

80000 70000

60000

50000 Net Sales 40000 C. O. G Manufactured 30000

20000

0000

0 2

Net Sales to COG Manufactured and Gross Profit

7 6 5 4 3 2 1

Net Sales

1 2 3 4 5 6 7 8 9 1 11 12

C. O. G Manufactured Gross Profit