BUSINESS PLAN DEVELOPMENT

Submitted in partial fulfillment of requirement of the degree of

Master of Business Administration

BUSINESS CATEGORY:

Goods

BUSINESS PLAN:

Opening a Preservative Ice-Apple Company

DEVELOPED BY:

PRIYANKA CHAKRABORTY

REGISTRATION NO: 00472 of 2021-2022

VU ROLL: PG/VUOAP02/MBA-IVS NO: 054

 EXECUTIVE SUMMARY

Ice-apple is India’s first Brand that makes products from the

superfood – Sugar Palm. This Naihati-based sustainable food brand offers
handpicked natural products with a vision of benefiting the planet. The
company stands for creating a better tomorrow – one where humanity
thrives, with products that are curated from ethically grown and sourced
produce that is then hygienically processed and packaged. All Ice-apple
products have no chemical preservatives with a shelf life of 4 Months and
require no refrigeration.

Ice-apple is in Naihati, West Bengal and the sole owner is Ms.

PRIYANKA CHAKRABORTY. The purpose of this business plan is to go
for Preserved food with the help of our Consumers. We project that the
company will reach the break-even point in its sixth month of operations.
The projections outlined within this business plan indicate sufficient funds
for repayment of the requested loan.
 OBJECTIVES

Ice-apple has the following objectives:

 To bring ethically sourced, sustainably grown food to our customers

dinner table and explore alternative foods in our search for wholesome
products that are good for our customers health and also great for our
planet

 To have vigorous sales in the first twelve months of operations.

 In first year, we will have 57% margin and in 3 rd year we will expect to
have 40% margin after recruiting employees.

MISSION

 Ice-apple makes products from Sugar Palm and our brand offers
handpicked natural products with a vision of benefiting the planet.

 We will start launching our product in modern trade outlets only so that
our customer can touch and feel the product and We believe in
providing superior customer service and creating a shopping experience
that is relaxed and pleasurable also we are looking into whether the
farmers are getting fair price or not.

 We also believe in providing a working environment for our employees

that is professional and fun, and that empowers our employees to be
trustworthy and make feel them that they are the valuable assets of the
company.

 Our main mission is to bring this delicious meat to the customers so

they can conveniently enjoy Sugar Palm and low-calorie benefits, open
and eat from comfort of their own home.
 KEY TO SUCCESS

To be successful in this business, Ice-apple must:

 Create awareness among the customers through MT and SAMT outlets,

we will connect with our customer through distribution channel and
later through E-commerce platforms.

 We need continuous innovation in our products according to the taste

and preference of the customers.

 Need to avoid distribution gap so that we can satisfy our customers

without any stoppage.

 Maintain and create excellent Raw material, Production, procurement

and inventory.
 ICE-APPLE PRODUCTS NEEDED FOR LOOK-UP

Ice-apple is working to transform food systems by delivering juicy, delicious

tasting food people know and love, while being better for people and the
environment. At Ice-apple , we stand for a better tomorrow. We are committed to
helping farmers whether they are getting fair price or not.
Now a days people are avoiding Sugar Palm because of its cut open and cooking
process due to its stickiness. We are providing this superfood as open and eat items
so that customers can enjoy the taste with the benefits of high fiber through pure
food.
Primarily we will sell products through nearby MT outlets in the area of Naihati-
Dumdum after that we will approach HORECA, Distribution channel and E-
commerce platforms.
Ice-apple will track the “success rate” (the number of times a particular product
is purchased), and we will find that “Hero” product so that we can project revenue
in end of the financial year. And also we will make decision that in which product
we should invest money and which product we should remove from the shelves.
 MARKET SEGMENT ANALYSIS

India is such a country that produce and consume highest number

of Sugar Palm (1436 tones/year) in the world. Also, West Bengal is the 4 th
most Sugar Palm (207 Tones/year) producer in India. But unfortunately, the
wastage of this superfood is increasing day by day, in India the wastage is 70-
80% of the total product. So, we want to utilize this superfood to make India
healthy and fit. We are going to connect with some local farmers at the initial
stage of our business and also, we will take care of fair price issue of our
farmers.

What is unique about Bridal Ice-apple is that we are providing a

superfood to our customers which is low in calorie and high in fiber with zero
preparation difficult. This negligible plant-based meat is the substitute of meat
and we are going to make India “Eat with Ice-apple ”. Initially we will start
from MT and SAMT outlets of Naihati-Bardhaman area to find out the
potential customer base.

SEGMENTATION ANALYSIS.

There are some major market segments that will be served by Ice-
apple - Everybody and flexitarian, young consumer, Urban and semi-urban
consumer, Health conscious and ethical consumers, Protein deficient
consumers, non-Everybody and “guilty” Meat caters.
On the basis of Distribution, our products are segmented initially into
Modern trade and SAMT outlets, after launching of 6 months we will
approach HORECA, Online Retail GT outlets. The MT segment accounted for
the largest share of the market in 2021 owing to their rapid expansion in major
developing regions and their high penetration in developed country like
India. The large size of MT allows the consumer to house a wide variety of
Sugar Palm products which is not possible for GT stores initially for which
consumers can touch and feel the product and their attraction will be grab by
the display.
 TARGET MARKET SEGMENT STRATEGY

Ice-apple will focus on its target market, low-to-middle class in the area of west
Bengal initially and then India. Now a days people are avoiding Sugar Palm
because of its cut open process and with this they are losing the high fiber and
consume high calories. That’s why we are providing Open and eat for this super-
food so that everybody will get to enjoy delicious Ice-Apple.
We will strive to establish a reputable image from that target market's perspective,
by offering excellent quality new tasty Sugar Palm dishes, convenience, expedient
delivery services, service excellence, and by partnering with local businesses like
HORECA. By always focusing on meeting or exceeding our customers' needs,
wants and expectations, we will be able to build customer loyalty and word-of-
mouth sales and will use influencers that many of our competitors are lacking .

.
 COMPETITION AND BUYING PATTERNS

There are currently about three or four companies who are providing
Open and eat of Sugar Palm like Rural treasure, Foodique, Turtye. They are
providing open and eat items through their website and e-commerce
platforms.

In the first half of operation, we are going to launch and promote out
products in Modern trade outlets and we will appoint promoter for huge
modern trade outlet to see the perception of the buyer.
Also, we will do some in shop survey to know where we should
innovate the product. We are starting with MT outlets so that consumers can
touch and feel the product and gather experience about the product quality and
the buying patterns,
Initially consumer can buy the product from MT outlets and after
three or four months when we will realize that we have to step forward then
we will approach E-commerce platform like BlinkIt, Instamart, Jiomart and
Big Basket so that consumers can enjoy the product sitting from their home.
Also, we will approach HORECA so that the consumers of hotel, canteen and
restaurant can feel the tastes of Ice-apple and enjoy the superfood which is
healthy and totally in the form of fruit.

As previously mentioned, Ice-apple tend to be more cost- conscious, so

competitive pricing will be key for that segment. We will offer a wide variety
of Open and eat items at different price points.We prefer customer satisfaction
at various edge of India through our health beneficial, taste and fruit meat
products.
 STRATEGY AND IMPLEMENTATION SUMMARY

Ice-apple has the distinct advantage of being the only company of its kind in
its market who provides open and eat items in less price. Our marketing and
sales strategies will emphasize our unique advantages for the mission “Go
Rural”, The basis for our ideology is simple; the more people that hear our
name and become familiar with our services, the more people will use it. The
marketing campaign will involve a targeted advertising campaign, different
specials to entice the customers to try our business and a very intense
networking campaign:

 our range of traditional open and eat items at comparatively low price

 Our main focus is to provide meat with texture with low calorie and high
in fiber to keep India fit

 Our packaging, design, presentation and customer service is the main

weapon

 We Will do social media marketing such as Instagram, Facebook and

LinkedIn and marketing campaign like “say no to Animal meat” and
“Eat with Ice-apple ” to spread awareness among our customers. We will
do In-shop promotion through our promoters in MT outlets.

COMPETITIVE EDGE

The predominant competitive edge of Ice-apple is that we are providing open and
eat items with low calorie, high fiber, texture like meat, another edge is our
relatively low-price product in compare to our competitors.

An increase in awareness of the health benefits provided by Sugar Palms such as

cardiovascular health, immunity boost, and anti-inflammatory properties are
driving the market. However, the dearth of adequate storage facilities for these
perishable foods act as a significant challenge to the Sugar Palm market.
It is very difficult to increase the shelf life (1 year) of ready to eat product for more
growth because Sugar Palm is a seasonal food who give us production four months
of a year and we did it, our shelf life is 50% higher than our competitors.

SALES STRATEGY

 Customers need to be acknowledged and attended to right away. That’s

why initially we will drive our products in local MT outlets for three or
four months to observe how customers are reacting towards the
products. Also, our promoters will take feedback from the customers
after selling so that we can continuously innovate our products as per
customer needs.

 After observing, we will approach HORECA to boost our credibility as

a reliable partner from where we will get large volume and value of
sales. This approach would also bring additional revenue and to build
relationship for further forecasting.

 As a new market entrant, we want to promote our products therefore we

have defined the margins of distributors, who would connect and buy
product with cash or credit to distribute it further and, we developed
discount to our customers for high volume purchase and to encourage a
larger purchase by dealers, we want to offer them a quantity discount.
 Our focus is not only accelerating online sales but to building customer
loyalty online. As consumers expect hassle-free, convenient shopping
experiences. Delivering this seamless customer experience online also
adds to successful sales and consistent growth that’s why we will
approach E-commerce platforms.
 SALES FORCAST

The forecast reflects sales to slightly more than one percent of the total customer
base in our country India, based on the following assumptions:
 Total number of people in India – 27 Crore.
 68% peoples of Indian population used to eat healthy foods.
 3% peoples of India population used to consume fruit diets.

One percent is a sensible estimate for the first year of operations. There are
currently about three or four companies in India that carry some or all of the items
offered at Ice-apple . Assuming that the customer base was divided evenly among
these shops, each shop would have about a two-and-a-half percent market share.
However, because this will be the first year of operations for Ice-apple , that
“even share” of the market is not expected right away. It is expected that by year
two, the market share will increase to two percent, and by year three, the market
share will exceed three percent. This will happen as Ice-apple becomes known as
the place where customers will get diet fruit with low calorie and high in fiber.

To break the sales forecast down even further, the goal of sales in year one is
equivalent to selling 75000 pieces of 100gm during the year.

The cost will be 20% lesser than our competitors and we are getting 60% margin
at PTR rate. So, in the 2nd phase of our business after recruiting Employees,
spending money at promotion, giving margin to distributor and deducting
discounts we will have 45% margin already.
 FINANCIAL PLAN

According to our conservative estimates, Ice-apple is expected to maintain a

healthy financial position over the next three years. The following plan outlines the
financial development of our company. The business will be initially financed by a
₹7L on three-year term loan and a total capital investment of ₹8L by my side. The
source to repay the loan will be the cash flow generated from operations. The
company will also finance growth through cash flow. After an initial period of
three years, the company will be able to make a further expansion. At that time, it
is envisioned that a bank loan or equity funding will be sought to finance the new
development, in addition to retained earnings.

IMPORTANT ASSUMPTIONS

Due to the current economic uncertainties, our assumptions are conservative. In

judging and estimating, we have chosen the alternatives that are least likely to
overstate assets and income. The key underlying assumptions are:
 we assume a slow economic recovery process over the next three years, but
no major depression.
 we assume access to capital and financing sufficient to maintain our
financial plan as shown in the tables.
 we assume continued popularity of Ice-apple products in our target market.

General Assumption -

Plan Month 1 2 3
Current Interest rate 10.00% 10.00% 10.00%
Long term interest rate 10.00% 10.00% 10.00%
Payment Delay 20 20 20
Sales on credit 15.00% 15.00% 15.00%
Collection period(days) 30 30 30
 Inventory in hand(days) 21 21 21
Tax 30.00% 30.00% 30.00%
Others 0 0 0

PROJECTED CASH FLOW

The cash flow of Ice-apple is somewhat unique. For items that are sold off the
floor, the cash flow and revenue recognition is traditional, in that full payment is
received at the time of the sale, and the customer takes possession of the item at
that time. For only MT outlets we decided to go with credit system that means
MT outlets will pay us within the credit period of 7-14 days.

Many profitable companies go bankrupt because of cash flow deficiencies. That is

why our main concern will be to have sufficient cash on hand to meet our payment
obligations, and be prepared for unexpected needs of cash. Our conservative
projections indicate that our business is able to generate positive cash flows and
sufficient cash reserves. In addition to normal cash inflows and outflows, we will
focus on establishing sufficient cash reserves for contingencies. That includes a
possible line of credit with our bank, that could be used in slow sales periods as
well. This is a good way to control the cash flow risk.
 SOURCE OF FUND:

Mr. PRIYANKA CHAKRABORTY have

invested- 8,00,000/-

Loan taken from bank – 7,00,000/-

Total amount of investment – 15,00,000/-

STARTUP EXPENSES

LEGAL 1,50,000
TECHNOLOGICALEXPENSES 50,000
RAW MATERIALS 2,50,000
PACKAGING EXPENSES 50,000
MACHINERY 3,00,000
EQUIPMENT 1,00,000
MISCELLENEOUS ITEMS 50,000
TOTAL EXPENSES 9,50,000

*Rest 5,50,000 is for future assets.

SALARY AND WAGES

PROFESSIONAL FEES(2) 400,000

PRODUCTION STAFF(3) 400,000
MANAGER(1) 250,000
ACCOUNTS(1) 200,000
PROMOTER (10) 8,40,000
TOTALPEOPLE 17
TOTALPAYROLL 20,90,000
 OPERATING EXPENSES FOR 1st YEAR

ADVERTISING, CAMPAIGN AND PROMOTION 100,000

RENT 1,50,000
EMPLOYEEEXPENSES 20,90,000
ELECTRICITYCHARGES 1,50,000
MAINTENANCE OF MACHINERY 30,000
TOTAL OPERATING EXPENSES 25,20,000

PROFIT AND LOSS FOR 1st YEAR

SELL 60,00,000
DIRECTCOST 24,00,000

OPERATING INCOME FOR 1st YEAR

PROFIT FOR (60,00,000-24,00,000) = 36,00,000

st
1 YEAR
TOTAL OPERATING 25,20,000
EXPENSES
INCOMETAX 70,000

LOANINTEREST 70,000

NETPROFIT 36,00,000-(25,20,000+70,000+70,000) =
9,40,000

*2nd year’s net profit is expected to be 3% higher than 1styear.

*3rd year’s net profit is expected to be 6% higher than 1st year.

 CONCLUSION

We are confident that we can achieve our conservative financial projections,

generating a gross revenue in excess of ₹60L in year one after the opening of the
business. In addition, our management has carefully considered its market,
potential customer base, and its ability to grow its sales average to capture market
share. With our projected numbers and the total market share and revenue in
the Open and eat food industry, we confidently project over a 2-crore entity value
in year four.
We firmly believe that our business has the potential to become a highly regarded
resource in local and regional markets. Due to the company’s aggressive
marketing strategy as well as the careful development of company products and
services, the establishment of the company as a regarded entity in our industry is
now within grasp.

The Company has taken the necessary precautions to ensure the business is fully
capitalized and has addressed all financial shortfalls to ensure a successful business
expansion. Providing that the company is able to continue operations and fulfil
requirements during our first year of operation, Ice-apple will be able to secure
repayment of the investment and achieve operational success for many years to
come.
In all the above we intend to communicate our ability to serve our customers with
products and services that will satisfy & exceed our customers’ needs and wants
with health-conscious, plant-based meat company. All the above promotional tools
that we have mentioned throughout the plan shall be well integrated and utilized in
tandem so as to maximize their effect.