A Report on Green Apple Pickles Submitted to Samia, Shabnaj Faculty of Business Administration American International University-Bangladesh Submitted by Group:

5 Group Members Particulars Sl. 1 2 ID 08-11349-2 08-10244-1 Name RAHMAN, FARAH GOLAM KASHFIQUE AYASEEN

08-12367-3

SEULY NURUNNAHAR AKTER

Course : Entrepreneurship Development Program: BBA Semester: Spring, 2011 - 2012 American International University-Bangladesh March, 14

Contents:

Introduction Business Description Product / Service Technology Market Environment Competition Industry Business Model Marketing segment Research, design, and development segment Manufacturing segment Management segment Intellectual Property Regulations / Environmental Issues Critical risks segment

Executive Summary:
Even though the Green Apple Pickle concept is very new, it can became a new business idea in 2012. The Green Apple Pickle (GAP) shall undergo through significant changes in virtually every aspect of its business and shall initiate a new brand growth strategy. The proposed project envisages the setup of Pickle production, processing and marketing business in the Bangladesh. Pickle is a general term used for fruits or vegetables preserved in vinegar or brine, usually with spices or sugar or both. Pickle producing businesses are engaged in producing pickle in different varieties. Natural fruit and vegetable items are used as raw material for producing various types of pickle i.e. apple, beet, cabbage, cauliflower, cucumber, olive, onion, pepper, and tomato. It is planned initially to produce pickles of Apple. However after wards more fruits and vegetable varieties will be add to enhance product mix. The main raw materials are fruit, treated water, sugar, citric acid, fruit flavors and preservatives which is readily available at very low costs. The unit has a rated capacity of producing 100,000 Kg of pickles in a year, with an estimated capital cost of Rs 1,300,000. The project will employ 8 personnel directly besides creating more job opportunities both on farm and off farm. The project will be completed for final production in 3 months.

While manufacturing is often associated with large-scale production, it can also mean a simple business run by a work-at-home mom. True, they have different operational needs, but the basic principles applicable to every business remain true for them, regardless of size.

Manufacturing is one of the main pillars that support the continued existence of our civilization. Every item we use and almost all of the food we eat are products of a manufacturing process. And many of us are employed in the manufacturing industry. As applied to industries, manufacturing means the use of equipment, raw materials and manpower to produce goods on a large scale for use as intermediate product or direct selling to end users or consumers.

Business Description:
As a new entrepreneur, we will select a location for our firm in such a way that it will be very easy for us to collect raw materials and side by side to sell in the market in Dhaka. So we will select a location nearby Dhaka region that will be most suitable for us. It will be a private limited company. We will take loan from banks. 20% will be our own investment and rest of the investments will come from various banks as syndicated loan. Initially we will not go for mass business. It will be only a factory where green apple will be the raw material of our production then we will sell our product to the small market in Dhaka, Chittagong & Sylhet. Then gradually we will go for investing in apple states and also for the retail market.

Industry Background:
There are many companies in Bangladesh who are involved in manufacturing pickle. There are 8 companies but some of them are well known & successful & others are not. like Pran Pickles from Pran group, BD pickles from BD company, Ruchi pickles from Square Group, Aftab Pickles from Aftab Group, Laziz pickle etc. But only Pran group, BD company, & Square Group is successful . In addition, there are huge demand of it but these company can not fulfill the demand of the consumers thats why, many consumers buy the imported pickle & even many consumers (women) are making pickle in their own home. So the pickle industry is yet fail to fulfill the customers demand. But they are not paying attention on it thats why, may be they are not taking any action . Moreover, as times are passing consumers tests become change so industry should emphasize on it & they should modify the product. As they are not conscious about that, thats why its an opportunity for us to do a proper business on it.

Goals:
Our goal is too meet the consumers choice of quality food. We are determined to Serve the best quality apple pickles and change the taste of Bangladesh towards apple in a new way of consumption. Moreover, maintaining market share as competition grows & earning profit.

Vision: Our vision is to become a global quality company that will be internationally recognized,"

Mission:
To bring a revolution in the pickles targeting the taste of Bangladeshi people.

Uniqueness of the Product / Service:

Our concept of business is producing pickles by using green apples. We know that green apple production is not yet possible in Bangladesh. But if we can use the modern technology then we can encourage the farmers to work on the green apple production. Our basic concept is based on importing the apples from China, because worlds largest apple production is in China. From a survey in 2008, we came to know that China had produced 27 507 000 tones of apples on that year. And in the year 2006 China was the top most apple exporter in the world.

Marketing Segment: Target Market:

We are focusing on group of niche market that means Upper Class & Middle Class.

Demand Analysis:
Demand is huge but the competitors can not fulfill the demand of the consumers thats why, consumers are buying the imported product & many women are making the home made pickle.

Competitors:
As our product quality is good thats why, our competitors are Pran group, BD company, & Square Group. We have to compete with them.

Estimated market share:

Competitors have 40%, Import products 20% & the 40% are home made product. So our target on the home made product & the Imported product because as we know that Imported product is costly & home made product needs much time to make it as well as many effort needs to give thats why, if we give the quality product to the consumers then they will definitely buy our product so our estimated market share is 60%.

Marketing Segment: Marketing Plan: Current Market Situation:

There are many companies in Bangladesh who are involved in manufacturing pickle. There are 8 companies but some of them are well known & successful & others are not. like Pran Pickles from Pran group, BD pickles from BD company, Ruchi pickles from Square Group, Aftab Pickles from Aftab Group, Laziz pickle etc. But only Pran group, BD Company & Square Group is successful. In addition, there is huge demand of it but these companies can not fulfill the demand of the consumers thats why, many consumers buy the imported pickle & even many consumers (women) are making pickle in their own home. So the pickle industry is yet failed to fulfill the customers demand. But they are not paying attention on it thats why, may be they are not taking any action. Moreover, as times are passing consumers tests become change so industry should emphasize on it & they should modify the product. As they are not conscious about that, thats why its an opportunity for us to do a proper business on it.

Product Situation:
We are focusing on quality that means a quality product. So we will not do any compromise with the quality.

Macro Economic Situation:

Govt.: The Govt. of our country is very flexible about to do any legal kind of business that means there is no barrier of doing business. Environment: The environment of our country is very suitable to produce or to grow green Apple.

SWOT Analysis for a New Pickle Industry in Bangladesh Strengths

Demand for pickle has been growing at some 2% per annum and should accelerate further. Good Research Support by Green Apple growers has will help industry grow further.

 We will establish our factory in Savar. So, its very easy to collect cheap labor . Though the factory machines do not produce in our country but it is available in our nearby country India or China.

Weaknesses
We are the very new company in this sector. Supply from more efficient players like India, Bhutan Declining Export of Bangladesh over the years. No effective cost management system adopted by companies and other regulatory bodies. Labor intensive industry: The second generation labors are reluctant to join this industry.

Opportunities
Export Potential if we can increase its production capacity. Competitors are not aware of the product modification & the consumers tests. Large untapped rural market for distributing our new branded pickle.

Threats
Global competition. Import of pickle from other countries. Cost escalation on account of increase in the cost of production.

Objectives: Broad Objectives:

 To be a market leader .

Specific Objectives:
To make a quality product. To make a branded product. To satisfied the customer. To create a difference among competitors.

Guerrilla Marketing Plan

We are doing Guerrilla Marketing Plan .We have targeted our market that is upper class & lower class. We have done a marketing research. We found our Competitive Advantage & planned many strategies around them .We have selected the marketing mix.

Customer Relationship Management

We will focus on CRM.

Guerrilla Marketing Strategy:

Where we are talking about marketing communication we are thinking about the means by which firms attempt to inform, persuade, remind consumers directly or indirectly about the brands they sell. In a sense marketing communication represents the voice of the brand and is a means by which the brand can establish a dialogue and build relationships with customers. Building marketing communication strategy is a complex task. Marketing communication involves a gamut of activities the sum total of which lead to the creation of the brand. This will

contribute in creating awareness of the brand, eliciting positive judgments or feelings, and facilitating a stronger consumer-brand connection and resonance.
Marketing Strategies :

Find a niche and fill it:

Niche strategy allows small company to maximize the advantage of its size. It means if we segment our product it will be more benefit for us. To follow the niche strategy we segment our product in two class of people like upper class and middle class. For the upper class people the product quality is high and also high price. For the middle class people we produce such a product that they are able to buy it.

Strive to be unique:

People always try to purchased such type of product which is very unique . Uniqueness means something different from others. We produce green apple pickle which is unique and new product in the market . It is a unique product so the demand of the product is very high .

Create an identity for business:

Create an Identity is very important for marketing strategy .Because with out identity there is no value in business. So to create an identity we need to use vision to market our business and product . Identity means what does our business and the vision of our business . Example : In Nokia there identity is connecting people, For Grameen phone there identity is kache thakun etc. For our business we also create identity. By throwing the message Experience your taste with the quality

Connect with customer on an emotional level:

This strategy customer receives an emotional boost every time they buy the product .Our product is pickle so it will be touch customer emotion . people love to eat pickle in there males. In the Ramadan and Eid people are buy more pickle because it increase the test .

Focus on the customer:

Develop a customers focus and satisfaction is important for marketing strategy . We need to focus in customer demand and find out the solution how we satisfy our customers throughout our product .

Devotion to quality:

World class companies treat quality as a strategic objective, an integral part of the company culture . In our business we produce quality full product . The philosophy of Total Quality Management is:

. Quality of the product. . Quality in every aspect of the business and its relationship with the customer. . Continuous improvement in quality .

Attention to convenience:

Attention to convenience means we need to convenience our product through the customer. Some customer are not interested to buy new product because they cannot take risk . If we want convinced those customer we use wee trained employees .

Own Strategy:
We will give some incentives to the owner of the wedding center & some restaurants owner so that they will promote our product by providing the model of our product on the center of the table so that the guest & the customer respectively who will come in the center & restaurant then they will seat around the table & they will see our product . So it will help our product to be a branded product.

Stage in the Product Life Cycle

As it is a new business or an introduction stage thats why we will use Rapid Skimming Strategy- High price, High promotional expense

Developing a Marketing Communication Plan

To reach in approximate 1.5 million people in Dhaka, Chittagong & Sylhet . Identify & analyze the Upper Class & Middle Class people. Select an advertising message & choose the media for transmitting it.

Promotion :
For promotional purpose we use :

Publicity: Publicity is one of promotion which is the component of marketing. Any commercial news
covered by the media that boosts sales but for which the small business does not pay .for our promotional we use publicity .

Art exhibitions Event sponsorship Arrange a speech or talk Invent then present an award Stage a debate Organize a tour of our business or projects Issue a commendation Cause Marketing

Personal selling:
Personal selling means the personal contact between sales personnel and potential customers resulting from sales effort .In our promotional purpose we use personal selling strategy .We direct contract our customer to go there house and work place .We try to convinced them to buy our product .

Unique Selling Proposition

Unique product Delicious & Nutritious Prevent Cancer Increase blood Add taste to food

Advertising:
The element of the marketing communication mix that is non personal paid for an identified sponsor, & disseminated through channels of mass communication to promote the adoption of goods, services, person or ideas. Advertising is also a communication paid form of non-personal communication about an organization, product, service, or idea from an identified sponsor. We use advertising for our promotional purpose .

Advertising media :

Word -of- mouth : Throughing the positive word of mouth because it attracts consumer by psychologically. Newspaper : We give the advertising in news paper because it is a big mass media to reach our information to the customer . It is low cost and also communication potential . Television : Television is a broad coverage media . We advertise our product through the TV. Because so many people see TV .We easily reach our information in our target customer . World Wide Web : We give the ad through the wed . Outdoor ads : Outdoor ads means billboard we give the ads this media. Trade show : there are many trade show organized in company we advertise our product in there to participate .

Pricing Technique

Suggested retail price. 400 gm will be 130 taka in a glass jar. 100 gm will be 90 taka in a pouch.

Action Program:
We will launch our product at the second week of the July that means approximately 3 months before Ramadan. The launching ceremony will be held in the Hotel Radisson. There will be different media & we will do publicity on it.

Control:
We will monitor the marketing process & from the feedback we will measure the actual performance with the standard.

Distributors

Distributors, executives, sales officers, sales representatives etc, it is supposed to be the main task for any new company, when they go for launching any new products. Such is the case for our Company. To make the free flow of our product distribution, such effective human resource personalities are very much required. So, being the sole distributor, it is one of the main tasks to employ and monitor the human resource team. As, we target the market only the 3 major cities; it requires agents and sub agents to properly market our products. Then we will target the district and after then it will end at fader

town. To reach the final consumers or the buyers of Green Apple pickle, such agents and sub agents are very much needed. Being the distributor, it requires 3 agents or wholesaler for the 3 major cities. Operations of the 3 major cities are distributed among the agents, as the monitor the operation and take correctives actions. Under the agents, 15-20 sub agents are the given the task to distribute the products to the different retailers, who are located at different location in the cities. Through proper distribution channels and effective employees, such plan can be implemented properly.

R & D and Manufacturing Segment: Product Manufacturing Process

There are two basic methods for pickle processing used in Bangladesh where local taste is concerned. One is water based process and the other is oil based processing. Pickles available in the Bangladesh market are generally based on the water process, whereas, homemade pickles are made using oil. Generic production process is carried out following the method given under.

Pickle processing and packaging does not need any heavy machinery and equipment. During the discussion with existing pickle producers, pickle production is time consuming because its process requires sun-light and machinery is used for packaging of Pickle. Total project cost of the Pickle processing and packaging machinery costs around Rs. 1.7 million.

Cost, Revenue, Profit Structure:

Revenue = Price* Quantity = 130*5,000 =650000 Taka Revenue = Price* Quantity =90*40000 =3600000 Taka Total Revenue =7850000 Profit = Revenue Cost = 7850000 2100000 =5750000 Taka

Production Requirements:

We know that Green apple pickle is a very unique and new product .So it is very important to focus in production requirements. In our product we import our main material like green apple and also equipments from foreign countries so we need to focus manufacturing cost.

To focus in manufacturing cost we want to set-up our business in Saver . Today there are many industry are established in saver. Population live in saver are also increasing . Most of the people are poor and middle class. It is very easy to get labor at low price. We Manufacturing our product in saver . We use modern technology for manufacturing purpose because of modern technology we no need more labor .Modern technology do all the manufacturing process automatically without touching hand. After competed the manufacturing process we deliver the final product in the market at low cost. For delivery purpose we use pick- up. We also make a strategy that delivery pricing are same in regardless less of location . Sometimes sell the product in condition that buyer will pay the transportation cost . As a result we delivery the final product al low cost.

A business startup need to minimize the capital expenditure . Physical premises mans the physical structure of the organization like location ,building and equipments. The physical location in our business setup in saver. It a new product so we startup our bossiness a small size. If we see that the demand of our product in market high and also we get high profit then we expand our business . Now we start our business at small size. The age of the business is depend on the profitability . If we can not get profit from business then there is no logic to run the business long time. Environmental condition is very important for a business because if the condition is favorable it is possible to run the business. Capacity of the planned production is depends on the business size and customer demand . In our business the capacity of planned production and warehousing facility is medium. We produce our product in two shift planned . One is day shift another is night shift.

 We start our business in small size and we want to reduce the manufacturing cost so it is good for us to leased the land for factory . If it is possible to get leased factory that is more good for us. If we get old factory then it is necessary to need renovation if it is land then need to build factory .

Green apple pickle is a new product in the market so for the starting period we find some complexity. When we start our business we face many challenges .For our business we need import equipment from other country . It is very costly.

To produce Green apple pickle we need import green apple from others country .The supply of the apple is available in market. To import the Green apple we need make a contract between our suppliers. If we make a contract we are assure are supply of green apple. Manufacturing capacity is depend on production efficiency and order size is depend on market demand. Reputation ,size and financial condition is also important.

Proprietary process and trade secrets is also important because without proprietary it impossible to import any product . Trade secrets is depend on importer and exporter .How the importer want to import their product. Product quality is very important facts for the customers because there are is a lot of competitor in the existing market and customer always want good quality al low cost .To maintain our produce quality we use total quality management process. World class companies treat quality as a strategic objective, an integral part of the company culture . The philosophy of Total Quality Management is:

. Quality of the product. . Quality in every aspect of the business and its relationship with the customer. . Continuous improve in quality .

Pickle Making Equipment:

Many types of equipment are necessary to establish a pickle manufacturing company. Those equipments are used initial steps to final processing of a pickle manufacturing company. All of those machineries are found in India and its our neighboring country. So, it will be better for us to import machineries from India. Some of them are described below. We offer state- of the-art equipment that will ease the process of making pickles. We make machines for cutting chillies, raw green apple, mixing the pickle etc. Simple in design and easy to use, these machines are designed to give consistent and long lasting performance.

Chilly Cutting Machine 'U' shape cutting drum which has gaps at 1 \ 2 or 1 even small pieces routes clockwise and blades anti - clockwise. At the bottom is a collection tray, which collects the cut pieces.

Pickle Mixer Made of stainless steel 304 U - Shape chamber with rotation blades, which turn and mix the product inside. Mounted on MS Frame. The drum is tilting for easy removal of product. Equipped with 2 HP motor and reduction gearbox.

Blister Cutter The blisters after sealing are passed through the cutting machine, which then cuts the blisters into individual pieces as per design.

Pouch Packaging Plant

We offer pouch packing machines that are used for packing materials in all states, be it liquid, powder or granular state. Simple in design and easy to use, these machines are manufactured using latest technology, and ensure long lasting performance.

Pouch Packaging Machines Our pouch packaging machines use latest technology for accurate filling. These machines can pack material in any form, be it powder, liquid or granules in any capacity as per requirement.

Bottling Equipment
We offer a complete portfolio of Bottling Equipment, which is manufactured using quality raw material such as stainless steel. These equipment provide easy grip over the bottle and makes a air-tight seal to prevent leakage. Available in different capacities, our bottling equipment are used for packaging of mineral water, fabric softener, rinse, shampoo, detergent and lubricating oils.

Crown Corking Machine (MODEL NO.PSCC135) These crown corking machines are hand operated and can used for bottles of any size. These crown corking machines find application in various industries like chemical, food, cosmetics etc.

PP Cap Sealer (PEDESTAL MODEL) This PP Cap Sealer provides a tight grip with no leakage and hence are used in many industries like mineral water, fabric softener, rinse, shampoo, detergent and lubricating oils.

Lug Cap Sealing Machine (MODEL NO.PSLC137) Lug Cap Sealing Machines prevents any kind of leakage during handling and storage, hence making the product durable.

Rotary Bottle Washer Our range of rotary bottle washer is used to clean the bottles from both the outer and inner surface. These machines are fast and efficient and do not require much maintenance.

Vacuum Filling Machine (MODEL NO.PSV126) These vacuum filling machines are manufactured using food grade steel and are suitable for bottles of all sizes.

Piston Filler (MODEL NO.PSPF250) Our highly capable piston fillers are capable of handling more than one bottle at a time. These fillers are best suited for viscous products and can also handle various chemical applications.

Supplier of Production Equipment:

Steels worth Private Limited is one of the best companies who produce the high quality machines for pickle production which is a Indian company. There are many other companies who produce and export quality machines for pickle production. India and Srilanka are the country who produces the finest machines. Most of the companies Bangladesh Import machines from this two countries.

Raw materials of the product:

Ingredients of Pickle of Green Apple : Green Apple Mustard Oil / Soyabean Oil Sodium chloride Acetic Acid ( E-260 ) Ginger Garlic Turmeric Powder Chilli Powder White Mustard Coriander Powder Black CuminSeed Cumin Seed Powder Mace

Packaging Material
Following packaging material will be required for the production purposes: Glass bottles or Jar 400 gm 15,000 Pouch Polyethin 2,0000

Management Business
Customer Value Key activities, Channels, segments etc structure as well as which helps to get

Segment: Model:
relationship, proposition, Key resource, Customer reduce the cost increase the sales good revenue .

HUMAN RESOURCE REQUIREMENT

Pickle processing does not need specialized and skilled labor and generally women can make good pickle. However packaging may need to hire trained labor having experience of operating packaging machinery. The proposed project would need a total of 8 persons in order to handle the processing and packaging operations. The business unit will work on one shift basis (8 hours daily). Technical staff for packaging and distribution purpose would require experience.

Manpower requirement for the business operations along with their respective salaries is given in the table below:

Recruitment of Sales Force:

To recruit distributors, executives, sales officers, sales representatives etc, it is supposed to be the main task for any new company, when they go for launching any new products. Such is the case for our Company. To make the free flow of our product distribution, such effective human resource personalities are very much required. So, being the sole distributor, it is one of the main tasks to employ and monitor the human resource team. As, we target the market only the 3 major cities; it requires agents and sub agents to properly market our products. Then we will target the district and after then it will end at fader town. To reach the final consumers or the buyers of Green Apple pickle, such agents and sub agents are very much needed. Being the distributor, it requires 3 agents or wholesaler for the 3 major cities. Operations of the 3 major cities are distributed among the agents, as the monitor the operation and take correctives actions. Under the agents, 15-20 sub agents are the given the task to distribute the products to the different retailers, who are located at different location in the cities. Through proper distribution channels and effective employees, such plan can be implemented properly.

Management and personnel requirements is very important because proper management creates competitive advantages .A product start and finish successfully is depend is proper management . Management and personnel Requirements is an essential part of controlling complexity, risk, project scope and in un-ambiguously defining the goals and criteria for a successful software or business project.

Management Requirements is the process of establishing the base capabilities of a project. This is more than a statement of purpose for an applications - it is the specific goals that the application must meet. As such, investigating and recording Requirements is an important step in any project. Thorough Management Requirements is effective in improving workflow across the project lifecycle, from Software Design to Cost Estimation and even creating User Documentation. A range of research techniques should be used to establish the requirements for a particular project. Talking to prospective users, conducting surveys and examining prior systems are all good methods. It is rare that additional requirements will not be discovered during a project lifecycle, and so ongoing research and documentation of requirements is essential to effective requirements management.
Job Description / Responsibility

Direct & Control the staff of the department to ensure that all targets are met within the specified quality standards & budgets. Control the staff of the department to ensure that they are appropriately trained & motivated & Carry out their responsibilities to the required standards. Oversee all operating process to ensure that the most efficient & effective use in made of plant & equipment & that safety standards are adhered to. Prepare & Monitoring budgets to ensure that the optimum use is made of production resources. Monitoring output to ensure that production meets the standards in terms of quantity & quality. Provide advice & Support to the departments on production issues. Plan, introduce & monitor maintenance & work schedules. Maintain new developments in production process.

Educational Requirements
Graduate in Food Technology / Agriculture / Engineering.

Experience Requirements

3 to 5 year(s)

Board of Directors:

A simple diagram is given below to show the board of Directors of the organization.
Board of Directors MD & CEO Director Admin Gen Manage r Manager Recruitme nt Director M&S Gen Manage r Manage r Director Finance Gen Manage r Manage r Director Engr Gen Manage r Manage r Director Plannin g Gen Manage r Manage r Director Store & Purchas e Gen Manage r Manage r

Strategic Management Process :

Step 1. Develop vision & translate it into a mission statement Step 2. SWOT Analysis Step 3. Identify Key success factors & Analyze Competition Step 4. Create goals & Objectives Step5. Formulate Strategies Step 6. Implement Step 7. Control

Key Success Factors

Product Quality Solid Relationship

Formulation of Strategy
Differentiation

Competitive Advantage
Unique Product Superior Quality

Core Competencies
Superior Quality Innovation Team -Building Flexibility Responsiveness

Intellectual property:

Intellectual property manes patents copyright , and trademarks .Intellectual property (IP) is a term referring to a number of distinct types of creations of the mind for which a set of exclusive rights are

recognized under the corresponding fields of law. Although many of the legal principles governing intellectual property have evolved over centuries, it was not until the 19th century that the term intellectual property began to be used, and not until the late 20th century that it became commonplace in the majority of the world. The objective of intellectual property legislators and those who support its implementation is "absolute protection". "If some intellectual property is desirable because it encourages innovation, they reason, more is better. The thinking is that creators will not have sufficient incentive to invent unless they are legally entitled to capture the full social value of their inventions.In our business we dont use any intellectual property because our product is very unique and new product .

Environmental Issues:

Some of the environmental issues that are of interest to environmental organizations are pollution, waste, resource depletion and increasingly on climate change. Environmental issues is very important for our business because government and some rules and regulation. We cannot pollution our environment . when we start our business we try to make sure that our business cannot affect our environment .If it is increase pollution problem then we take precaution to reduce the environmental pollution . To make our environmental clean we cannot through the waste in river or sea. We through our waste under the soil. In our business we follow all the riles and regulation of government issue. Inside the factory we also setup sound proof equipment to reduce sound pollution if possible.

Critical Risk Segment:

Potential Problems:

 Our competitors may come up with new ideas to take over the market. Any sort of unexpected incident can be considered as obstacle and risk.