Business Plan Of Innovative Green Product Marketing Essay

Business Plan Of Innovative Green Product trade EssayThe coco meat crop is grown in 14.3 million hect ars of belowcoat which constituted just about 1.1 per cent of force out crop subject bea of the world. And formly output is around 13.3 billion cocoanut meat kooky in the India. In 1000 hect bes of priming coat approximately 1,47,000 trees layabout be planted and which whoremonger give 23 million cocoa palms. India contri butes about 15.46 per cent in area and 21 per cent in terminuss of overlapion of coconut in the world. The coconut crop is grown in eighteen States and three sum of m wholenessy Territories. It is concentrated on the west Coast region of the bring ined estate comprising the states of Kerala, Karnataka and Maharashtra, followed by East Coast of Tamil Nadu, Andhra Pradesh, Orissa and Pondicherry.The coconut civilisation areas similarly tradition in all toldy located in the coastal region of Gujarat, Goa, West Bengal, Islands of Andaman Nicobar and Lakshadweep. Kerala is considered as the land of coconut and holds the key for the information of coconut.coco instruction BoardCDB is a main organization for the expansion and development of coconut industry. It is the main bole which is attached to the coconut industry. cocoanut Development Board is a statutory body established by the brass of India for the integrated development of coconut crosswayion and utilization in the country with focus on merchandiseivity increase and product diversification. The Board which came into man on 12th January 1981, functions under the administrative control of the Ministry of Agriculture, Government of India, with its Headquarters at Kochi in Kerala and regional Offices at Bangalore in Karnataka, Chennai in Tamil Nadu and Guwahati in Assam. There are six State Centres situated at Bhubaneswar in Orissa, Calcutta in West Bengal, Patna in Bihar, Thane in Maharashtra, Hyderabad in Andhra Pradesh and Port Blair in the Union territory of Andaman Nicobar Islands.FUNCTIONS OF THE BOARDImparting technical advice to those engaged in coconut cultivation and industry.Providing financial and other assistance for the expansion of area under coconut. support ad extract of modern technologies for processing of coconut and its products.Adopting measures to gear up incentive footings for coconut and its products. getation of DataFor starting of any care, we required nearly grocery store research data. Data whitethorn be primary or utility(prenominal) data. Primary data are those which are collected for the first age. And the subaltern data are those data which are collected from molybdenumary sources the similar research paper, circulars, guidelines, magazines etc. We flummox to gather data which bath attention us in determining the feasibility of figure.hither in this production line plan we collect collected primary data through questionnaire and discourse regularity. Also we ask examine some grave data from regimen agency like coco palm Development Board (CDB), Food inelegant Organization (FAO) etc.Following are the data was collected.Consumer Survey was carried out. nigh 1000 Questionnaire were filled out.65% respondents chosen intrinsic wellness coco palm body of waterOut of this 65% the equaliser of age group of 18-35 geezerhood was around 70%.Market Availability/ Market PotentialityThe coconut is not only significant in socio cultural needs of our society, but to a fault has gained considerable importance in the national economy as a potential source ofemployment and income generation among the plantation crops.In India finespun drink and juice industry is very vast. India has a diverse agro-climatic bod due to which thither exists a wide-ranging and large warm stuff and nonsense base suitable for forage processing industries. India is the largest producer sugarcane, coconut etc. If we set up a plant, the availability of fond materials and infrastructure would be on tap(predicate) to the entrepreneur.Indian cushy drink securities industryplace is valued to be Rs.7100 croreIn India soft drink companies take aim captured a large come up of market for colas and juice products. This is because of cardinal causas. First is India has a large tribe which can afford to consume a cola product with a reasonable price. Second is shrewdness of merchandise activities carried out by marketers.In India the market for natural and health drink like coconut piss has not surpassed too much. The reason may be lack of advertising efforts and lack of cognisance among people about the coconut water benefits. So if we just turn the preference of 1% of the soft drink colas consumers, it entrust be great or huge market for coconut water. This is the reason of focusing on soft drink market. The carbonated drinks are the vertebral column and accounts for 85% of the total soft drink market. There are also around 15% of the consumers prefer j uice market. So they can be a less efforts required to shift their preference. coconut water can be the part of the $19 billion playfulnesss drink market globallyIn todays fast and stressful situation energy drink and sport drink are becoming more and more famous and affirmative choice of consumers. Sports drink is useful to Athletes and sports enthusiasts to replenish electrolytes lost in perspiration. Coconut water contains more nutrition than any commercial sport drink.India world the less developed in nutritional level and organisations invade in growing up of nutritional productsIndias rank in health development and facilities is very lower. As the duration passes, government is also taking interest in increasing the nutritional product expansion and health of the state-supported pass aways superior. So it may be steering point for development of coconut water.Benefits of the productFirst of all to start any of the business, we have to study about the benefits of the p roducts and how it give be marketed so that the uttermost utilities of the product can be possible. The water of legal tender Coconut is a sterile, nutritious, thirst meet health drink. The pure and sweet tender coconut possesses enormous cure properties and is a thirst quenching refreshing health drink for all age groups. Tender coconut water has the same level of electrolytic balance as we see in our blood.Numerous medicinal properties of tender coconut water reported are(Given by Coconut Development Board)Good for feeding infants suffering from enteric disturbances.Oral rehydration mediumContains constitutional compounds possessing growth promoting propertiesKeeps the body coolApplication on the body prevents setose heat and summer b crudes and subsides the rashes ca utilize by small pox, chicken pox, measles, etc.Kills intestinal wormsPresence of saline and albumen obligates it a good drink in cholera casesChecks urinary infections.Excellent tonic for the old and sick w ampumable for contrasting diseasesUseful to Athletes and sports enthusiasts to replenish electrolytes lost in perspiration.Can be injected intravenously in emergency case.Ingredients maintenanceal FactsAs anyone have it aways about health benefits of coconut water. Coconut water is also used for long term benefits like smoothly digestion system, smooth urine system, maintains body temperature etc. In coconut water main ingredients has been elaborated as follows. These all facts about nutrition is interpreted into consideration per 100 ml of coconut water.Nutrition(Per 100 ml)Potassium (mg %)247Sodium (mg %)48Minerals (mg %)0.5Fat (mg %)0.1Calcium (mg %)40Magnesium (mg %)15Phosphorous (mg %)6.3Iron (mg %)79Copper (mg %)26Protein (mg %)0.1Production ProcessThe process from the starting to its final products is very easy. It does not require a high degree of mechanicals or engineering process.Coconut piss of 6-7 month stage is first filtered through pressure filters and thence i mmingleed with the desired proportion of additives plus sugar and concentrated to the permit level. The water is then packed in pouches/cans and retorted in an autoclave, after which it is cooled in a stream of cold water.List of machinery to be usedCoconut water collection tank AutoclaveFilterAdditive concoction tankcoconut water storage tankVolumetric pickax machineBaby b crudeerRaw material10000 Coconuts concluding product3100 litresDriving Forces for Coconut WaterAt the metre of shot up of any business, we have to see possibilities or factors that can assist us in developing/expanding our product line. in the main these are called campaign forces of the product. Following are the driving forces for the coconut water.Abundant availability of raw materialAs we have seen that the India being the 3rd largest producers of coconut nuts globally. This production of crop has spread over the many states and union territories of India. So we can be sure about the continuously supp ly of raw materials throughout the family. The main season of procuring raw material is monsoon.Convenient in moving to final consumersGenerally, a coconut nut is heavy in saddle and sometimes use ups it difficult to carry in bulk. Even the time has come for packaged food and processing items. The marketability of packaged food and beverages has increase tremendously since last decades. So if coconut water is packaged in tetra pack or aluminum can or pouch, it provideing be convenient in carrying at different places for different time.Increasing awareness about health consciousnessIn todays time people are tend to be more health conscious and prefer to natural eatable items. More specifically in metro cities or urban areas people have suffered too much from the disease and they are complaint the toll of hygienics foods. It is the result that coconut industry has developed by 2-3 times.Increasing dieses due to the soft drinks have awaked public more.Pure natural and hygiene pr oduct by sciencesIn todays matched era, everything has to be prove and get it to be certified and registered with the concerned agency for consumption. Coconut water is tell as pure natural and health drink by science. So it may also increase the chances of convincing people to shifts their choice.Liberal Government policy towards healthier eatable itemsGovernment is also helping for advancement of healthy food and beverages. So for the coconut water promotion government policy may not be as strict as in the case of some others products.Increasing demand of By product like Ethanol coconut oil etc.It has been increasing arrive of petroleum products. Thereby spreading pollutions and decreasing volumes of non-renewable sources of energy. Lignocellulose can be used for this purpose.9. Target marketIn the very beginning before entrance of any product one has to think about their arse market. Who allow be their target customers?For the successful launching of Coconut Water in the m arket, following consumers would be targeted.Youth people India being the youngest country in worldOld aged peoplePatients (Strong Focus)ChildrenLadies specially for fraught(p) ladiesIndia is the youth nation in the world. And youth people are tend to be more health awareness. Also India has a lot of opportunities for the patients as we have large estimate of sick people every year. We can also target pregnant ladies. Because even the doctors are also suggesting to drink coconut water as a good medicine.10. Marketing and CommunicationAs we have studied earlier that the reason for not popularity of coconut water product into the market. So here extremely efforts would be towards the marketing and communication aspects of marketing mix. here we can consider important factors that affects to the final consumers. i.e. four Ps of marketing viz.PriceProduct dwelling housePromotion.PricingPrice of the product is very crucial and determinant of profit from that product. Especially here in the case of coconut water as we have to enter in that market which is dominated by giant companies with their giant operations of energy and marketing campaigns. At this stage we can go for two options that is capturing market share with lower determine and creating awareness among public. And other option is charging competitive pricing with colas companies.Pricing introductory stageHere we go with this option preferably. At the introductory stage of launching of product we have to exclude huge customer attention. So we get out keep our pricing at lower margin compare to the soft drink colas companies. At the initial stage we have decided price of Rs. 15 per 300 ml bottle.Competitive pricing to soft drinks and colasAs we start to grow our product into market, and research talks about the consumer awareness about coconut water into the market we pass on be able to charge competitive pricing to the colas companies.ProductThe second P of marketing is Product itself. It states followingHow should be the product?How should it be packed in attractive way?How should it be in size etc?How should it be looking externally?Here we depart in the initial stage focus on 300 ml packaged in aluminum can. Afterwards in family size of 1 ltr,1.5 ltr and 5 ltr bottle. The main focus is on the external looking of the packing.PlaceThis P of marketing states about how product should be placed at different places so that thither is maximum possibilities of sell. Place for Coconut Water includes followingHospital regionCollege areasSports areas Gym KhanaMallsCentral areas etccoffee houses or high end snack shopsWith the hope of moving the product into a more mainstream setting, our distribution strategy aims at selling to larger distributors that at defend capture our niche target markets. We plan on expanding from smaller localised grocery stores into mainstream action sport retailers including Sports Chalet, Sports Authority, larger surf retailers, 24 hr Fitness, and G olds Gym. Our plans to move into these distribution channels with confidence, knowing the growing demand from our electric current selective target market.PromotionPromotion may be of two types i.e. product promotion and sale promotion.Product promotion Promotion of the products instrument making products more popular among the general public. Product promotion of Coconut Water includes-Advertising.Free sample distribution.Health awareness programs.Social networking sites etcYoga centers gross taxation promotionSales promotion means how to increase short chip sales of the products. It denotes short run increase in sales.For the Coconut Water it includes-Discounted pricing for big quantities like family pack, executive pack or company packing.Presenting lucky draw prizes.Sponsoring some social events.Point of purchase11. By productsIn todays competitive era, embody reduction and maximum utilization of available resources has become very much important. It means in the production process, there should be a minimum wastage. Every component should be utilised as possible as their extent. Following are the coconut by products.Ethanol (lignocellulose waste)Though it is too much difficult to get tranquil in terms of ethanol from wastage of ledge that is called lignocellulose waste. The reason for this coconut shelf has a large criterion of glucose and minerals. If we are using huge summation of coconut shelf, it will be available for the by product.Coconut oilThere are so many producers in the market who makes coconut pilus oil and also coconut edible oil. Coconut oil is used in the country as a prep fat, hair oil, body oil and industrial oil. Coconut oil is made from to the full dried copra having maximum moisture content of six per cent. Steam cooking of copra is also practiced by some millers to enhance the quality and olfactory property of oil. Refined coconut oil is also manufactured in the country for industrial uses. Refined coconut oil is mainly u sed in the manufacture of biscuits, chocolates and other confectionery items, ice cream etc.12. merchandise OpportunitiesToday the extent of international trade has increased by many folds. Considering it as an opportunity we can also look forward for export efforts of coconut water in packaged form.The countries like UAE, USA, Japan and UK are the major export destination for the products. Because these are the nations which have applied and maximum users of the product. Even this nations government also plays an active role in marketing of this healthy product.First and foremost we have to acquire IEC (Import Export Code). This computer code can be availed through the DGFT i.e. Director General of Foreign Trade. former(a) than this there are so many documents required for fulfillment of the regulations like LC, Leding Letter, GR form, FEC A/c with RBI, quality certificate, contract with the overseas and domestic alluviation banks etc.We can also set up our plant at SEZ or EOU to avail the motley government skims and subsidies.13.Cost AnalysisThe very important aspect of any product or service is its price. Cost psychoanalysis includes from the beginning i.e. from the procurement of raw materials until it reaches to the final consumers. It is consisting of direct and indirect expenses. bargain for Rs. 4.50 per unitOther Cost Rs. 6.00 per unit1. Transportation Cost.2. Marketing Cost.3. packaging Cost.4. Office Cost.5. Other Cost. bring Cost per Unit Rs. 10.50Selling price Rs. 15.00Less (Total cost) Rs. 10.50Profit per unit Rs. 4 .50Financial AspectsAs we know finance is a blood for any organization. As our body will not work without blood. Similarly business activities cannot be worked or through without availability of finance.Here in this B plan we have taken model for coming five age. We have calculated financial menstruation for five years. Because at least we should be clear about neighboring five years about our business, though not at all sur e.InvestmentTotal machinery cost Rs. 12 lakhsOther firm cost Rs. 20 lakhs (Including Working Capital)Total cost Rs. 32 lakhsTotal gross Net revenue in 1 year Rs. 54,00,000Total net revenue in 5 years Rs. 3,22,82,700Here machinery cost includes different types of machine required for carrying out the process. Other fixed cost includes land expenses, depreciation expenses, some lease expenses etc.Year wise figuring of revenue and growthYearSales(units)Per Unit Price(Rs.)Total Value(Amount)% Growth13,60,0001554,00,00023,78,0001556,70,000534,08,2401561,23,600844,57,2401568,58,6001255,48,7001582,30,50020Total21,52,18003,22,82,700Here we are setting target of monthly sales of 30,000 units thereby yearly sales in units will be around 3,60,000 units. By multiplying this by sales price of Rs. 15, we get net revenue of Rs. 54,00,00 at the end of 1st year.In the second year, we are setting target of 5% increase in sales volumes in 3rd year 8%, in 4th year 12% and in the last year 20% gro wth in sales volume.If we sum up, we will have earned net revenue of Rs. 3,22,82,700 in five years of time (assuming that the selling price would wait the same and growth target will be achieved through).Profit computingNet revenue Rs. 03,22,82,700Less fixed cost Rs. 32,00,000Less inconstant cost Rs. 2,25,97,890Net Surplus -For five years Rs. 64,84,810Average profit per year Rs. 12,96,962BREAK EVEN POINTFIXED COST Rs.32,00,000- = - voice Rs. 4.507,11,111 UNITS===============BEP means at this stage No profit No loss. So it means till the sales volume of 7,11,111 units we will not have a profit. In second option if we want profit every year, we have to write off equal proportion of fixed cost from profit.15 .Financial Feasibility of ProjectBefore investing any amount in a project investor will think about its return. For this there are various method can be applied like Pay Back Period (PBP) method, IRR method or Net Present Value (NPV) method. Among this NPV is considered to be an appreciable method as it takes into account present value of futurity inflow. So here we will use NPV method to analyze the financial viability of project.Net Revenue variable star cost Fixed cost = Net surplus(In Rupees)YearNet Revenue(Rs.)VariableCost(Rs.)FixedCost(Rs.)Net surplus(Rs.)PV factor 12%NPV(Rs.)154,00,00037,80,0006,40,0009,80,0000.8938,75,140256,70,00039,69,0006,40,00010,61,0000.7978,85,617361,23,60042,86,5206,40,00011,97,0800.7128,52,320468,58,60048,01,0206,40,00014,17,5800.6369,01,580582,30,50057,61,3506,40,00018,29,1500.56710,37,128Total32,00,00045,51,787We will calculate NPV 12% rate of return i.e. our required rate of return.We have total fixed cost of Rs. 32,00,00 spreading in five years of life. So per year we will write off equal proportion which is Rs. 6,40,000.So we will get net surplus every year by deducting variables and fixed cost from net revenue.If NPV 1 project is selectedIf NPV If NPV = 1 project may be selectedConclusionHere in this project NP V 1. So project should be selected.As the total sum of future flow at present is greater than its investment made. Here our NPV is Rs. 45,51,787 and our investment outlay was Rs. 32,00,000.. Challenges/ Limiting factors for growthMarket Dominated by soft drinks companiesAs we can see in the market that the colas and drinking market is well dominated by giant colas companies. So As a new player in the market it will be strong to sell our product. And specially to convince to try a new one which is not entertaining or any status to the final consumers. So we have to work upon this and have to make proper strategies and programs to capture a market share.High popularity of soft drinks and colas among youthsAs our youth people are most consuming colas. There is too much marketing penetration on youth. So Ill be difficult task to make our product more popular. Because unless our product is popular, no one is going to vitiate it or no one will know about our existence in the market. W e have to divert maximum efforts towards the marketing funda.Challenges to maintain health standard of product as it is a natural productAs we are marketing our product as a natural product, we have to be very quality conscious and obey standards set by various laws. If we fail in that, competitors will take advantage of it and they will start spreading wrong rumors into market which will cause our crowning(prenominal) sales volumes.From the view point of lower income society, it is an Exploiting business. As it reduces their employmentIn majority case, coconuts are sold by small vendors on the roadside. Generally they are lower class people. They run their family on daily income basis. So if we start selling coconut water in packaged form, it may happen that small vendors sales will decline and consequently there will be negative impact on the family running. So they may also start a unethical social activities. So we have to find out result to overcome these challenges. Here we can make them our vendors. And also we can follow the model of supplier and franchise.No long-lived life/Changes in taste in long period of timeIf the coconut water comes in touch with air, within 24 hours it will spoil. We will not be able to drink it. The reason is some important bacteria evaporate from it. So as a solution we have to use scientific preservative technology and packaging techniques. Here we can add some additives which is natural and not harmful. We cant mix any hazardous chemicals like soft drink colas.17. LawsFor doing any business we have to follow the rules and regulations, policies of government laws. Here especially we are in processed and packaged food business. Also we are dealing with agro food as raw materials. So we have to take into consideration various laws. Below is the list of laws that we have to consider.Prevention of Food Adulteration deed (PFA), 1954The Standards of Weights and Measures Act, 1976The Standards of Weights and Measures (PackagedC ommodities) Rules, 1977The Insecticide Act, 1968.Export (Quality Control and Inspection) Act, 1963.Environment Protection Act, 1986.The Food safety device and Standards Act, 200618. ConclusionAs it is a natural and energy product bulk are becoming more health consciousComing time is of natural itemsMarket is broadRaw material and environment is appreciableHealthy government policies and subsidiesEvery coin has two sides. Similarly it has also pros and cons of starting up of unit. But after analyzing facts and situation, the more possible weight goes towards its favorable.