Welcome to Presentation

Presentation on:
Generating Business Idea with International Market Opportunities

Presented by
Sujon Saha (17) Borhan Uddin (21) Nepal Chandra Dhar (30) S.M. Khairul Islam (42) Arijit Kumar Saha (57)

Our Business Idea

According to International Centre for Underutilized
Crops. Jackfruit has remained as an underutilized tropical fruit. And jackfruit pulps can be used for preparing honey,

reduced to concentrate or powder, and used for preparing

drinks. We intent to do business through producing Jackfruit Juice

named JACKO BANGO from Bangladeshi jackfruits

targeting our local and Western consumer market of fruit juices.

Industry Analysis

Industry Outlook & Demand

Global Fruit and Vegetable Juices Market is going to reach 64.46 Billion Liters by 2015, According to a New Report By Global Industry Analysts, Inc. Fruit and Vegetable juices continue to exist as one of the most competitive segments in the beverage industry competing strongly against soft drinks, sports & energy drinks and bottled water World trade in fruit juices has expanded very much last couple of years and will continue its upward trend over the next several years World market of tropical fruit juice is mostly dependent on Apple juice, orange juice, Guava juice, Pineapple juice and Papaya juice . But production of these fruits is not increasing.

Industry Outlook & Demand(contd.)

Jackfruit have not yet fully been discovered or accepted by

"western culture, but they likes fruit juices.

Consumption of fruit juices in the EU is amounted to 11.2 -12.2 billion gallons per year.

The five leading markets-the United States (imports of $1.12 billion liters), Germany ($667 million liters), United

Kingdom ($413 million liters), Netherlands ($317 million

liters) and Canada ($249 million liters) together had a world import share of 69% among all kind of fruit juices.

Competitors- International Market

A list of Jackfruit juice producers is given below:

Popular Food Industries Ltd Pakistan GOKNUR A.S. Turkey Thai Food Product International Co, Ltd Thailand TUKAS FOOD INDUSTRY INC.Turkey Pure Food Limited UAE Qarshi Industries (Pvt) Ltd Pakistan Askon Gida San ve Tic AS Turkey
MASTER ARI'S FOOD INDUSTRIES SDN BHD Malaysia

Nagode International Pvt Ltd India Shemberg Marketing Corporation Philippines Kiang Hua Co, Ltd Thailand Shanghai Passiono International Co, Ltd China

Competitors- local Market

In our country market for fruit juice has been dominated by a few companies. Though these companies are not producing jackfruit juice currently, we treat these companies as our possible competitors.They are Pran juice Frutica Frooto Shezan juice Acme juice etc.

Strategies against competitors

Providing the highest quality jackfruit juice Considering the international standard to ensure customer satisfaction Generating loyal customers through building strong relationships Providing constantly improved quality jackfruit juice Continuous innovation and modification of the products complying with customers demand Reasonable and acceptable price Launching highly effective mass promotional activities

DESCRIPTION of VENTURE

Product
Our product is jackfruit Juice. The brand name of our product is JACKO BANGO. We will produce jackfruit juice using raw jackfruit pulps of Bangladeshi jackfruits.

Reasons behind selecting this product

Jackfruit

have not yet fully been discovered or accepted by "western culture, but they likes fruit juice. For eating jackfruit one possible consumer may face several problems but jackfruit juice is much easier to drink. Jackfruit is our national fruit & something from this fruit will brand Bangladesh internationally. Availability of JACKO BANGO in western market place will provide Non Residence Bangladeshis opportunity to taste their national fruit. Consumers in the domestic market will also be attracted because it will minimize their problems regarding eating jackfruits.

Beneficial Factors of Jackfruit Juice

The The

pulp and seeds of jackfruit are considered as a nutritious tonic.

fruit is useful in overcoming the influence of alcohol on a persons body system.

The

jackfruit juice is useful for people who are suffering from these problems: Jaundice Pneumonia Indigestion Hypoglycemia Longevity

Way of doing business: Domestic Market

First of all purchasing a land near Dhaka and establishing our production plan. Deciding best producers of jackfruits & lemons Importing necessary equipments from china Appointing necessary human resource Contracting with retailers & super shops. Collecting required ingredients Completing the production process of juice Preserving & canning juice Storing our product & supplying them to retailers and super shops

Way of doing business: International Market

As we are a born global firm, we wont wait for international experience. We will try to contact with internationally praised retail super shops through our and export directly. We will also facilitate ordering opportunities through World Wide Web. Initially we will try to export our goods to USA, Canada, Western Europe and Middle East.

Production Plan

Ingredients

Natural Ingredients

Jackfruit Pulp Sugar Lemon Extract Water

Citric Acid Sulfur dioxide Ascorbic Acid Acidic Polyphosphate

Chemical Ingredients

Machineries to be used
Machine to be used for crushing the fruit:

Machine to be used for removing fruit stone from the pulps:

Machineries to be used (contd.)

Machine to be used for juicing pulps

Machine to be used for bottling & labeling

Juicing Procedure

When the mature fruit is ready to pick we will collect the fruit. The collected fruit will be sent to plants for juice processing The fruit must be inspected and graded for making sure that the fruit meets maturity requirements for processing Proper juice extraction is important to optimize the efficiency of the juice production process as well as the quality of the finished drink We need to concentrate the juice for extending the the shelf life of the juice As the juice processor is ready to prepare a commercial package for retail sale, we will pull concentration from several storage batches and blended with water to achieve the desired sugar to acid ratio, color, and flavor

Pasteurization is required for further retard spoilage

Process for preserving:

We will preserve the juice through mixing it

with Cyclodextrins- a combination of citric acid, ascorbic acid or an acidic polyphosphate, individually or in combination. Soluble cyclodextrins treatments may be added directly to the juices. In the alternative, soluble cyclodextrins may be used as a packing in a column or in a batch treatment process.

Process of Canning
For canning jackfruit juice we need Water-bath canner Quart jars, lids and rings Fruit juice Steps to be followed for canning: 1. Sterilize the quart jars, rings and lids. 2. Raise the temperature of the juice by placing it in a large kettle and cooking over low heat until bubbles just begin to break the surface. This will help to kill any bacteria 3. Place hot, sterilized jars on a towel to keep from cracking. Carefully ladle the fruit juice into the jars 4. Place the filled jars into the water-bath canner and remove jars from water-bath canner carefully 5. Remove jars from water-bath canner carefully.

Our Suppliers
Jackfruit

Suppliers: we will basically collect jackfruits from Gazipur and Valuka. Suppliers: We will collect quality lemons from Chandpur, jessore, Narshingdi and sylhet.
Suppliers: we will import our required machineries from china.

Lemon

Machinery

Organizational Plan

Company Profile
Name : Sabo Foods Ltd.-Born Global Firm Product: jackfruit juice Industry: Food & Beverage

Company Status: Private Limited Company

Year of Establishment : 2012 Corporate office: House no-16, Road no- 32(old), Dhanmondi, Dhaka, Bangladesh Project location: Biruliya, Dhaka

Quality Policy, Mission & Vision

Quality

policy We are committed to providing the highest quality jackfruit juice considering the international standard to ensure customer satisfaction in order to achieve our business growth and brand Bangladeshi products We aim to provide constantly improved quality jackfruit juice with full customer satisfaction

Mission

Vision

To be the most distinct market leader in global fruit juice business.

Company Objectives
Becoming a market leader in the global fruit juice sector Branding Bangladeshi products and culture Maintaining high growth rate Generating loyal customers through building strong relationships Producing juice considering the global standard Providing value added products

Organizational Hierarchy

CEO

Manager: Marketing & Promotions

Manager: HR

Manager: Finance

Manager: Operations

Senior Executive: Local Market

Senior Executive: Overseas Market

Senior Executive: Inventory

Senior Executive: Production

Marketing Plan

BUILDING BRAND MEMORABILITY

Jacko Bango

Derived from Jackfruit

Derived from Bangladesh

Name of the product +Country of origin + Catchy +Easy to spell

Market Segmentation
Geographic Segmentation Bangladesh USA Canada Western Europe Middle East Countries China Demographic Segmentation Individuals Family Sportsman Business buyer Students Non-resident Bangladeshi people Workers
Benefit Segmentation

Sick people Health conscious people Alco holist Athlete

Selecting target market segments:

Domestic Markets Health Conscious people - 33% Sick people - 43% General people - 24%

Health conscious

Sick people

General people

Selecting target market segments:

Foreign Target Markets Health Conscious people - 28% Non-residential Bangladeshi people - 50% Sick people - 22%
Health Conscious people

2. Non-residential Bangladeshi people

Sick people

Overall positioning strategy:

Nutritious and delicious juice Having full of energy Highly hygienic and healthy Useful for overcoming various diseases Containing lots of vitamins and minerals Comparatively cheap. Indigenous material

The winning value proposition of our product is MORE FOR LESS value proposition system

Marketing Goals
To establish an effective marketing mix To evaluate the competitive environment and establish a differential advantage To meet the growing consumer needs of tropical fruit juices To establish jackfruit juice as an alternative to common fruit juices through attracting consumers To expand sales by at least 10% annually for the first four years To build strong relationships with retailers

SWOT Analysis
Strength
Available ingredients Low production cost Strong management Enthusiasm Monopoly business

Weakness
Financing plant Consumers perceptions Political instability Unusual product

Opportunities
Huge consumer market No competitor in local level Competitive advantage Global product Strong B-2-B network

Threats
Seasonal production Beaurucratic problems International beverage brands Established alternatives

Pricing & Pack size

Product
J JA AC CK KO OB BA AN NG GO O J JA AC CK KO OB BA AN NG GO O J JA AC CK KO OB BA AN NG GO O

Pack Name
Single taker [ 300 ml ]

MPR (tk)
22.00
35.00

MRP
(USD) 0.292896 0.466080 0.798994

MRP
(EURO) 0.214145 0.340685 0.583990

U n ME [ 500 ml ]

FAMILY SIZE [ 1 litter ]

60.00

Distribution Channel
Local Market

Distribution Channel

Foreign Market

Storage Dealer Whole seller Retailer

Storage Shipping Agent Retailer

Assessment of Risk

Weakness & Barriers of doing Business Government Regulations Bureaucratic problems Operators with little training Fluctuating interest rate and inflation Sources of capital Problems in identifying consumer demand Fluctuating consumer behavior in tastes Problems in entering supply chain Problems in maintaining product standard Problems in collecting quality ingredients

Way of overcoming barriers

Building strong relationships with regulatory authority Providing training to operators Effective market research & Marketing strategy Overcoming the geographic distance through Website Building strong network relationship Gaining International experience Entrepreneurial spirit Grabbing every possible opportunity

FINANCIAL PLAN

CAPITAL STRUCTURE
Sl. No. 1. 2. sources of capital Equity (65.6%) Debt (34.4%) Total Capital Amount Taka 3,81,17,810 2,00,00,000 5,81,17,810 14% Interest Rate

Estimated Startup Cost and 1st year Costs

Cost types Land For firm Plant & Factory Equipment Patent and Trademark Office Equipment Pickup & Delivery Van Raw Materials Packaging & Preservation Expense : Utilities Expense : (Electricity,Gas,Water) Office Space Rent Marketing Expense : (Advertising, Promotion) Salaries Expense : Transport Expense : (Shipping cost & others) Other Expense : (Telephone, Legacy, Training) Total (25,000*12month) 60000 * 12 months 15,00,000*3 Amount Taka 5 katha*6,00,000 Total Taka 30,00,000 2,00,00,000 2,00,000 5,00,000 45,00,000 1,67,73,810 90,00,000 2,40,000 7,20,000 30,00,000 Factory: 25,00,000 Office: 20,00,000 45,00,000 4,00,000 5,00,000 5,81,17,810

Estimated Sales Volume for first 3 years: [Regional Basis]

Region North America Western Europe Bangladesh Total 2012 0.3 million 0.3 million 0.4 million 1 million

Expected Sales 2013 0.5 million 0.5 million 0.6 million 1.6 million

2014 0.7 million 0.8 million 1 million 2.5 million

Estimated Production, Sales and Net Income for first 3 years:

Production (litters) Sales COGS
Operating, Selling & Administrative Cost & Tax

2012 1 million 5,00,00,000 3,08,13,810 1,35,48,476 56,37,714

2013 1.6 million 8,00,00,000 4,62,78,095 1,90,14,762 1,47,07,143

2014 2.5 million 12,50,00,000 6,94,74,524 2,74,00,190.4 2,81,25285.6

Net Income after tax

Pricing & Pack Size

Product
J JA AC CK KO OB BA AN NG GO O J JA AC CK KO OB BA AN NG GO O J JA AC CK KO OB BA AN NG GO O

Pack Name
Single taker [ 300 ml ]

MPR (tk)
22.00
35.00

MRP
(USD) 0.292896 0.466080 0.798994

MRP
(EURO) 0.214145 0.340685 0.583990

U n ME [ 500 ml ]

FAMILY SIZE [ 1 litter ]

60.00

SABO Foods Ltd. Projected Schedule of Cost of Goods Sold For the year ending December 31, 2012
Particulars Amount (in BDT) On per litter out of 1million litters

Raw materials transferred to production Packaging & Preservation Expense Direct labor Utilities Expense Depreciation Land 1,50,000 Plant & Factory Equipment 20,00,000 Pickup Van (1) 1,50,000 COGS Gross Profit (62.267% of COGS) Sales

1,67,73,810 90,00,000 25,00,000 2,40,000

23,00,000 3,08,13,810 1,91,86,190 5,00,00,000 30.81381 19.18619 50.00

SABO Foods Ltd. Pro-forma Income Statement For the year ending December 31, 2012
Particulars Sales Cost of goods sold Gross profit Operating Expenses Rent Marketing Expense Salaries Expense Transport Expense Other Expense Depreciation Office Equipment 50,000 Pickup & Van 3,00,000 Patent & Trademark 20,000 3,70,000 Income before interest and tax Interest Net Income before tax Tax 40% Net Income after tax Amount (in BDT) 5,00,00,000 (3,08,13,810) 1,91,86,190 7,20,000 30,00,000 20,00,000 4,00,000 5,00,000

(69,90,000) 1,21,96,190 (28,00,000) 93,96,190 (37,58,476) 56,37,714

SABO Foods Ltd. Pro-forma Shareholders Equity Statement For the year ending December 31, 2012

Particulars Paid in capital Retained Earnings (Net Income)

Amount (in BDT) 3,81,17,810 56,37,714 4,37,55,524

SABO Foods Ltd. Pro-forma Balance Sheet For the year ending December 31, 2012
Balance Sheet Particulars Assets: Current Assets Cash & Cash Equivalents 2,50,00,000 Accounts Receivable 2,50,00,000 Fixed Assets: Land (30,00,000-1,50,000) 28,50,000 Plant & Factory Equipment (2,00,00,000-20,00,000) 1,80,00,000 Patent & Trademark ( 2,00,000-20,000) 1,80,000 Office Equipment (5,00,000-50,000) 4,50,000 Pickup & Delivery Van (45,00,000-4,50,000) 41,50,000 Total Assets Liabilities & Shareholders Equity Current Liabilities Accounts Payable Interest Payable Tax Payable Long Term Liabilities Shareholders Equity Total Liabilities & Equity Amount (in BDT)

5,00,00,000

2,56,30,000 7,56,30,000

53,08,000 28,00,000 37,66,476 1,18,74,476 2,00,00,000 4,37,55,524 7,56,30,000

SABO Foods Ltd. Cash Flow Projections For the year ending December 31, 2012

Particulars Cash Receipts: Inflow from financing Inflow from operating Cash Disbursements: Outflow from investing Outflow from operating 5,81,17,810 2,50,00,000

Amount (in BDT)

8,31,17,810

2,82,00,000 2,99,17,810 (5,81,17,810)

Net Increase in cash

2,50,00,000

Financial Assumptions:
Depreciations 1. Land would be depreciated over 20 years in straight line method 2. Plant & Factory Equipment would be depreciated over 10 years in straight line method 3. Patent and Trademark would be depreciated over 10 years in straight line method 4. Office Equipment would be depreciated over 10 years in straight line method 5. Pickup & Delivery Van would be depreciated over 10 years in straight line method

Bank Loan has a simple interest of 14% and would be paid within 5 years Tax rate is 40% Net income has been kept as retained earnings Accounts Receivables is half of total sales

Break Even Analysis

At Break-Even Point,
Profit = Revenue Cost = 0

Revenue = Cost, Profit = 0,

Here, Fixed Cost Particulars Utilities Expense Land Pickup Van Plant & Factory Equipment Office Space Rent Office Equipment Interest Patent & Trademark Total

for 1st year:

Amount in BDT 2,40,000 1,50,000 4,50,000 20,00,000 7,20,000 50,000 28,00,000 64,10,000

Break Even Analysis [Contd.]

Here,Variable Cost for 1st year:

Particulars Raw materials transferred to production Packaging & Preservation Expense Direct labor Marketing Expense Salaries Expense Transport Expense Other Expense Total

Amount in BDT 1,67,73,810 90,00,000 25,00,000 30,00,000 20,00,000 4,00,000 5,00,000 3,41,73,810

Break Even Analysis [Contd.]

Fixed Cost = 64,10,000 tk. Variable Cost = 3,41,73,810 tk. So, per litter variable cost is (3,41,73,810 /10, 00,000) = 34.17381 tk. Selling Price Per litter = 50 tk. Revenue Function, R(q) = 50q Variable Cost = 34.17381q So, Cost Function, C= 64,10,000 + 34.17381q

Break Even Analysis [Contd.]

At Break Even Point, R(q) = C Or, 50q = 64,10,000 + 34.17381q Or, q = 405025 litters Break Even Sales = (4,05,025 * 50) tk. = 2,02,51,250 tk.

Break Even Analysis [Contd.]

Revenue and Cost (in corer tk.) Revenue

R(q) = 50q (405025 litters)

(20251250 tk.) Break-Even Sales

Variable Cost

1
Cost C= 64,10,000 + 34.17381q Fixed Cost

20

40

60

Units (in 0000 litters)

Fig: Break-Even Chart 1st Year

Thank You

1 litter
300 ml

500 ml