1.

Organization
Decent group of industries is a partnership organization which is a collection of young independent individuals having different market backgrounds. This organization is going to start its operations from Bahawalpur, and with the passage of time and business growth it will expand its operation in other major cities of Pakistan. Organization is offering 2 types of products at initial level, cooking oil, Banaspati ghee, and also laundry soap as semi finished product. Cooking oil (Oilum Cooking Oil) is designed on the ingredients that are fats free and they provide good health for their customers. Its main focus is the heart and diabetes patients who want cholesterol free food. Banaspati Ghee (Oilum Banaspati Ghee) is designed for those who wants delicious taste with less fats and healthy food. It is designed on the ingredients which provide good taste and vitamins and Desi ghee taste in their food.

2. The project
Every 10th person in Pakistan is heart patient. Main reason behind this is that cooking oil they are using is not completely cholesterol free thats why they are suffering from such type of diseases. The product Oilum that we are offering is totally developed while considering all the health factors. Oilum is for every person who is health conscious. And Banaspati ghee that we are offering is also developed while considering fat free and great taste to make delicious dishes.

Oilum cooking oil and Vegetable ghee is a manufacturing plant proposed to set up near Noorpur, Karachi road Bahawalpur. The proposed project site enjoys the benefits of easy availability of raw material, quick access to the markets of Pakistan as it is located on the main road, source of power and electricity & transportation. The project will be equipped with most locally manufactured plant and machinery and rest of equipment will be imported from China.

3. Sponsors
Organization has different specialization background personals such as marketing, finance and human resource backgrounds. All of them have good skills in their respective fields and management skills. The sponsors of the project are highly qualified and experienced people who have extensive knowledge of business management in industrial fields, namely Ch.Jamshaid Latif Abdullah Shaiq Malik Madni Kalsoom Akhtar Sehrish Nisar Benish Shahid Syed Shoaib Kazmi Ch.Ghazanfar Adnan Saif-u-Din Sial Hafiz Riaz

4. Market
There is an intense competition in the market but there are opportunities in the market for this organization. Competitors are strong in the market and they have a large market coverage and share. But potential is always present in the FMCG sector. Our site is centrally located in Pakistan from where we can easily get access to the markets of the country. We have some competitors but its success and profitability is very much

related to its low cost and high quality. Oil and Ghee is basic ingredient of every meal so it has high demand locally and nationally. We will start our Business from Bahawalpur region and then we will go to national level. Plants location is in Bahawalpur that is an agricultural area, so raw material will be easily available and due to its location near Karachi road makes distribution easy. Some ingredients that we have to import they also will be easily accessed because the road from Bahawalpur to Karachi is good and transportation costs are comparatively less in Bahawalpur as to other major cities of Pakistan. Due to less costs we will provide best quality to our customers as compared to less prices then other competitive national brands.

5.

Plant capacity

The 100% capacity of plant is 150 Tons per day, of which 50 Tons would be the production of Oilum Cooking oil and 100 Tons of Oilum Vegetable Ghee. We will start production from 50% capacity and will be increased 10% every year.

6. Material and input

The basic raw material required for producing Oilum cooking oil is Canola oil which will be imported from Canada and Palm Olein oil for ghee will be imported from Malaysia. Other inputs like Caustic Soda, Fuller Earth, Common Salt, Antioxidant, Citric Acid, and Nickel Catalyst are available in Pakistan.

7. Project Engineering
The plant and machinery used for production consist of STORAGE SECTION, PREREFINING SECTION, HYDROGENATION SECTION, POST-REFINING SECTION, GHEE FILLING SECTION, REFRIGERATION SECTION, STEAM GENERATION, SOAP SECTION, WATER PUMP SECTION, HYDROGEN GAS GENERATION & STORAGE SECTION, CO2 GAS SECTION, ELECTRIC SECTION, TIN SHOP FOR 5 KG & 2.5, MACHANICAL WORKSHOP, TIN SHOP FOR 16 KG.

7. Man Power
3

Mainly three types of man power is required, production labor consist of skilled, semi skilled and unskilled and Admin staff that includes skilled workers.

8. Implementation:
The total time period for the installation & execution of output is estimated to be 6 months from the date of approval of finance.

9. Estimated Cost:
Total fixed cost of project + Initial permanent working capital Total cost of Project

Rs. (000)
168314 177551 _ ____ 345865

10.Financial analysis/means of financing:

Sixty percent of Estimated cost of the proposed project will be obtained through loan and remaining 40% will be contributed by the owner. Rs. (000) Debt 207519 Equity 138346 Total 345865

Debt equity Ratio

60%: 40%

11. Financial Assistance:

Rs.

will be obtained from Allied bank limited Bahawalpur.

12. Estimated operating Results:

ITEMS
Sales Gross profit Operating profit Net profit

2011 Rs.000
2110562 329201 279334 151894

2012 Rs.000
2643757 426660 365363 203994

2013 Rs.000
335670 712215 635818 368519

13. Financial Position:

(Rs.000) ITEMS
Current Assets Fixed Assets Intangibles

2011
438505 156582 707

2012
678224 145909 353

2013
1153178 135237 0

14. Financial Ratios:

( Rs.000) ITEMS
Current Ratio

2011
4.03

2012
4.65

2013
4.52

Quick Ratio Debt Ratio Gross Profit Ratio Net Profit Ratio

3.06 33% 15.59% 7.19%

3.74 22% 16.13% 7.71`%

3.86 13% 21.21% 10.97%

Economic Indicators:
The proposed project will contribute to the GDP by Rs. by providing Employment to workers and adding quality products in the market to make it more competitive.

Background and History

Project idea:
The Pakistan Vanaspati Manufacturers Association (PVMA) came into being with only 7 units as its members in 1961. This Association has been growing remarkably and now it comprises of 94 members engaged in the manufacture of Vegetable Ghee/ Cooking Oil in the organized sector contributing around Rs.30 billion annually to the government exchequer in the form of Custom Duty, Federal Excise Duty and Income Tax etc. The PVMA member Units are not only catering to the needs of Pakistans whole population, but also supplying this dietary item of daily use to the people of neighboring countries. The export of the Vegetable Ghee to Afghanistan and the Central Asian States via land route through Torkhum and Chamman borders is a good source to earn precious foreign exchange for our country. In addition of boosting trade relations with these countries thats why the future of this industry is bright in Pakistan PVMA is one of the largest contributors to the government exchequer. It is also among the top Associations operating as Trade Organization. Moreover, it provides employment, direct and indirect to more than 100,000 persons. PVMA member units annual production capacity is around 3.0 million tons with the facility to produce both high quality Vanaspati Ghee and Cooking Oils. The PVMA is an Association representing the Vanaspati Manufacturing Sector on all Pakistan basis. Its units are spread in all the four provinces and Federal Capital.

Project Promoters:
The sponsors of the project are well educated and equipped with variety of technical skills required for such type of businesses. so sponsors experience would assist the firm in the smooth and profitable operations and to make the company Successful. Sponsors detail is as under.

Name
Ch.Jamshaid Latif Abdullah Shaiq Malik Madni Kalsoom Akhtar Sehrish Nisar Benish Shahid Syed Shoaib Kazmi Ch.Ghazanfar Saif-u-Din Sial Hafiz Riaz

Age Address
23 23 23 21 22 22 23 23 23 23 Bahawalpur Bahawalpur Bahawalpur Bahawalpur Bahawalpur Bahawalpur Bahawalpur Bahawalpur Bahawalpur Bahawalpur

Qualification Experience
Business Graduate Business Graduate Business Graduate Business Graduate Business Graduate Business Graduate Business Graduate Business Graduate Business Graduate Business Graduate 4 Year 4 Year 4 Year 4 Year 4 Year 4 Year 4 Year 4 Year 4 Year 4 Year

Project Parameters Raw material:

The basic raw material required for producing Oilum cooking oil and vegetable ghee are Canola oil, Palm oil and Palm alien. These raw materials are not locally available, they would be imported from Canada and Malaysia. There are some other input materials 7

which are necessary for production but they are available in Pakistan. List of raw materials and their prices are listed below.

Cooking Oil
Raw Material Canola Oil (Tons) Caustic Soda (Kg) Fuller Earth (Kg) Common Salt (Kg) Antioxidants (Kg) Quantity 7,500 45,000 90,000 11,250 1,500 Price Rs(000) 645,000 1,125 2,700 34 240

Vegetable Ghee
Raw Material Palm Olein Oil (Tons) Caustic Soda (Kg) Fuller Earth (Kg) Common Salt (Kg) Citric Acid (Kg) Nickel Catalyst (Kg) Quantity 15,000 33,750 30,000 22,500 3,000 2,250 900 68 360 3,150 Price Rs(000) 1,125,000 844

Project demand, Products and product mix:

The main products of the company are Oilum cooking oil and vegetable ghee and by-products will be laundry soap and carbon dioxide gas. At 100% capacity, annual production of Oilum cooking oil will be 15000 Tons, Oilum vegetable ghee 30000 Tons and Laundry soap 450 Tons.

The process of production will be completed in thirty six hours. Factory needs three shifts in thirty six hours. This hierarchy is same for three shifts. In hierarchy, numbers of employees for three shifts are mentioned and they are divided into three shifts.

Technical Analysis Flow Chart:

Decantation Oil storage Refining GHEE Bleaching Filtration Hydrogenation Filtration Post Refining Post bleaching Filtration Deodorization Cooling Filtration and Vitamin Add. Storage Packing Chilling Godown Dispatch COOKING OIL Bleaching Filtration Deodorization Cooling Filtration De-Waxing Filtration and Vitamin Add. Storage Packing Godown Dispatch SOAP Soap Stock Soapnification Settling Filling in frames Cutting into cakes Packing Godown Dispatch

10

Managing Director
GM Accounts

GM Commercial

GM Technical

Accountant (2) Cashier (1)

System and process:

Factory has Clerks (10) one managing director who is responsible for whole activities of factory. Factory has no human resource department so; managing director is liable to perform all
Electrical Mechanical Dept Shop duties of human resource department like recruitment and selection of employees for Tin factory and set compensation for employees. Factory has three main department, accounts Soap Section department, marketing department and technical department. The managers of these (1) Section departments are responsible to report to managing director for their work. Accounts Forman Forman Boiler Main Store Shop

Assit.Cashier (2)

department have fifteen employees. Accountant report to General Manager of accounts Refinery
(6) cashier report to accountant and assistant cashier report to cashier and ten clerks are Operator Ghee Filling Ammonia Forman responsible to report assistant cashier. Marketing department has only one manager, Supervisor Section (1) Section (2) Electrician Section Gas Plant

(1)

commercial manager. Commercial manager sign a contract with third party for promotion Helper and distribution of(1) their product. In Technical department, eleven different sub-departments
Forman are working under one Technical manager. These departments Storeelectrical department, tin are (1) Forman (3) Boiler shop, boiler section, refinery Engineer (1) Operator (3) section, ghee filling station, laboratory, ammonia section, gas incharge (1) (1) Supervisor Laboratory Operators (6) (2)

(1)

Clerk (1)

Forman

Forman (1)

Operator plant, main store, soap section, mechanical shop. In boiler section, one boiler engineer and Fitter (3) Clerk Helper (3)

three

Forman Forman (3)

and

(3) Operatoroperators three (3) Helper

are worked. Operators report to Forman and Forman

Chief

(3)

chemist (1) report to boiler engineer. All employees of these sub departments except boiler Welder and section (1)

Operator (3) main store are responsible to report for their jobs to their supervisor and Forman. Helper (3)
(9) Shift chemist (3) Helper (3)

Lab attendant (3)

11

Human Resource Planning:

Company is having highly skilled human resource personnel. We invest large amount on our human resource. We estimate the amount of human resource which is required to fulfill the demand of our procedure to forecast demand is highly structured and we also do succession planning to fulfill key positions of company. We have well structured assessment centers to select new employees or to promote existing employees. We use transparency in our recruitment process by advertising jobs on newspapers and through net.

Training and Development:

Training and development have direct link. Companies enhance their performance by giving training to their employees. Company has well developed assessment centers to recruit and select employees and for training of existing employees. Factory has almost technical staff so, training is necessary for them. Company conducts pretest before training and posttest after training to check performance of company.

Compensation:
Company will compensate the employees as follows: GM accounts Marketing manager GM Technical Accountants Cashier Assistant cashier Clerks Forman Electricians Supervisor Store Incharge Rs.50, 000 Rs.50, 000 Rs.50, 000 Rs.10, 000 Rs.8000 Rs.6000 Rs.8000 Rs.10, 000 Rs.600 Rs.10, 000 Rs.10, 000

12

Chief chemist Shift chemist Welder Fitter Peon/sweepers Helper/operator

Rs.20, 000 Rs.15000 Rs.8000 Rs.6000 Rs.6000 Rs.6000

For the selection of managers the following assessment center will be executed

Days 1st Day

Candidate Activities Structures interview of respective designation. In-basket Leaderless group discussion and group presentation. (break) Role-play(supervision)

Assessor Activities Conduct interview, observe, take notes Evaluate interviews Observe, take notes Evaluate participants group interactions. Observe, take notes

(end of day) Evaluate role-play behavior. 2nd Day Subject matter interview (break) Leaderless group discussion (conflict) Conduct interview, observe, take notes Evaluate interviews. Observe, note notes

13

Written report prepare for oral report. Group problem solving (end of day) 3rd Day

Evaluate participants group interactions. Observe, take notes Evaluate oral repots. Evaluate written reports. Integrative discussion Evaluate candidates overall performance. Develop employer report on candidates.

Job description and specifications

Job Title Job Summary

Managing Director
A Managing Director maintains smooth and efficient function of a business. He directs the employees to achieve the company objectives. He must have strong leadership qualities and able to get excellent performance from his staff. Review the annual report summarizing progress on short and long range plans. He would be able to manage employee relation He must ensure performance management and improvement system. Provide vision to a company.

Job Description

Job Specificatio n

Minimum 4 years of experience of working with board of directors. Minimum 5 years experience of business, financial and personnel management. Age 33-45 years. He must posses problem solving ability. He should have effective communication skills

14

Job Title Report to Job summary

Marketing Manager
General Manager Marketing manager plan and execute marketing strategies. Coordinate the activities of employees in order to achieve marketing objectives. He is responsible for all the marketing operations. He must monitor marketing and promotion of a product. He is responsible for conducting survey regarding customer needs. 4-5 years of experience in similar positions. Masters or equivalent degree in the related field. Age 30-40 years. He must posses effective communication skills. He must have the ability to deal with environmental fluctuations (social & political) He must have the skills for market research, packaging of a product.

Job description

Job specificatio n

Job Title

Technical Manager.
15

Report to Job summary Job description

General Manager. Develop and implement organizational policies, strategies and manage the operation process. Manage all the operations that support organizational mission. Play an important role in the long-term planning and take initiatives towards operational excellence. Able to administer payroll and employee benefits. Plan and execute organizational policies and procedures. 4-5 years of experience in similar positions. Masters in finance and business administration. Age 30-40 years. Must posses technical, communication and coordination skills.

Job specificatio n

Job Tile

No. of employees

Job descriptions

Job Specifications
Degree in B.com Able to manage the accounts. Bachelors degree in the related field required. He must have the technical skills.

Accountan t 02

He would be liable to manager cash inflows and outflows.

Cashi er 01

He would be responsible to manage cash.

16

Lab attendant

03

He would be responsible to manage all apparatus of laboratory

Intermediate degree or any equivalent degree He must have technical skills Diploma in the related field. He must have the technical skills.

Electricians 06

He would be able to handle machines and equipments.

Welder

01

He is responsible to maintain the facilities.

He must be matriculate. He must have the technical skills. He must be matriculate. Posses technical skills.

Clerks

14

He would be liable to perform all the clerical work.

17

Assistant cashier

02

He would be responsible to manage cash and follow the instructions of cashier. He would be responsible to control all technical activities and report to GM technical. He would be liable to control and keep record of all inventory in store rooms

Bachelors degree in the related field required. Bachelors degree or diploma in technical field He must has technical skills Intermediate degree with computer diploma He must has technical skills Bachelors degree or equivalent degree. Good communication skills Bachelors degree in their related field He must have technical skills

Forman

12

Store Incharge

01

He would be responsible to build good communication in work force.

Supervisor

02

Boiler engineer

01

He would be responsible to control all activities of boiler section.

Chief Chemist

01

He would be responsible to control the proportion of chemicals in raw material for achieving specific result

Masters in chemistry or equivalent degree in related field and have one year experience in related field Masters in chemistry or equivalent degree. Intermediate or equivalent degree 18 He must has mechanical

Shift Chemist

03

He would be responsible to control all chemical reactions in production process He would be responsible to follow instructions of Forman of their section He would be liable to sets or locate

Helpers

20

Operator

20

Employment contract
1. The contract is offered for 1 year. 2. Permanent employees are entitled to allowances and benefits as prescribed by the company. And contractees are entitled to the hardship allowance and none of the other allowance. 3. Employer promise to promote, increase salary, provide bonus and other fringe benefits based on employee performance. 4. During the employment with the company employee is not allowed to accept the offer with any other organization. 5. Employee shall be terminated if he is find involve in the act having the effect of injuring the reputation of business, continuous failure and neglect or refuse to perform his duties. 6. Performance of employee will be reviewed annually. 7. Employee will have 30 days of annual leave and 24 sick leaves. 8. Employee is responsible for the payment of income tax. 9. Overtime will be worked only if it is agreed between the parties from time to time.

19

MARKETING PLAN
INTRODUCTION
Decent group of industries is basically a partnership organization which is a collection of young individuals that are interested to give their best to the Bahawalpur market. This organization is basically offering three types of products, Oilum cooking oil, Oilum Banaspati and third product is laundry soap that will not be branded. Laundry soap will be sold as semi finished good in the market. Initial focus of this organization is Bahawalpur and its surrounding market, and with the passage of time organization will expand its distribution to other major cities of Pakistan. The main focus of this organization is the health of their customers. Cooking oil is totally fat free and is good for heart patients and diabetes patients, and also for those who wants cholesterol free oil. Banaspati ghee is designed for those who want the taste of Desi ghee in their food.

ENVIRONMENTAL ANALYSIS
External Environmental Analysis:
These factors are outside the organizations direct sphere of control and must be taken into consideration when creating a marketing strategy. How these factors can influence the delivery of marketing plan, are individually explained below...

POLITICAL
Political factors include general elections, government stability, political shifts etc. They may not directly influence our business plan because Decent group of Industries is going to operate in FMCG sector and this sector is not directly influenced by Political factors.

ECONOMIC
20

These are the factors in the economic environment which could influence the organization and/or delivery of the marketing plan e.g. interest rate changes, inflation, recession etc. and they will directly influence the organization. Interest rate has a directly relationship with our business plan.

SOCIAL
Possible factors in the overall social fabric of the country/world which could influence the organization and/or delivery of the marketing plan e.g. pro-green bias, growing concern about health, reduced childbirth etc. These factors will directly influence the delivery of business plan. We are going to deal with such social factors in an efficient way.

TECHNOLOGICAL
Possible factors technological changes which could influence the organization and/or delivery of the marketing plan e.g. new inventions, increased use of IT etc. technological factors influence the business plan as well as the organization but to some extent. Technological inventions in oil industry sector are not aggressive and we are already going to install a new automated plant and we are also going to do business through website. The whole seller or retailer of our organization will have the opportunity to place the order online by using our website.

LEGAL
Possible legal or regulatory factors/changes which could influence the organization and/or delivery of the marketing plan e.g. new laws, regulatory demands etc. these factors directly influence the marketing plan and to the organization all over.

ENVIRONMENTAL
Possible environmental issues are water shortages, weather patterns, Load shedding of electricity and Sui gas etc. Decent Group of Industries is going to deal in cooking oil and ghee sector and these environmental factors have directly effect on our business plan. We

21

are going to install our own plant for electricity problems. Other factors such as weather patterns and water shortage have no direct relationship with our plan.

Internal Environmental Analysis:

Internal factors are those factors which are in the control of organization. Internal factors affect the organization internally. These factors include organization culture, Employees behavior, labor unions etc. in Bahawalpur region labor are cheap and the concept of labor unions is not so much.

Resources (Capital)
As we know that capital is the basic source by which a project actually comes to existence. There are two basic sources of capital that are used in business .Outsourcing and in sourcing.

1. Outsourcing It means that we are taking capital from outside. It may be short term or long term. It can be repaid in at least 3 months or it can be 10 years (20 years in case of HPFC). We will take 40% of the cost of the project from inside and we will take 60% of the cost of project from outside that will be our long term debt.

Resources (People)
Labor required for this project will be of three types. 1. Skilled 2. Semiskilled 3. Unskilled

22

PRODUCT DEVELOPMENT
Decent group of Industries is offering following products. 1. Oilum (Cooking Oil) 2. Oilum (Banaspati Ghee) 3. Laundry Soap (By Product) To develop the above mentioned products we will mainly focus on Health; the product which we are offering is the second most needed food product. So everyone uses it because it is the basic necessity of human beings. We are focusing on health while developing our products. As now a day diseases like diabetes, heart problems are very common. Every 10th person in Pakistan is heart patient. Main reason behind this is that cooking oil they are using is not completely cholesterol free thats why they are suffering from such type of diseases. The product Oilum that we are offering is totally developed while considering all the health factors. Oilum is for every person who is health conscious. And Banaspati ghee that we are offering is also developed while considering fat free and great taste to make delicious dishes.

TRAINING
The labor we are hiring is of three types. Skilled labor is already specialized in their respective fields and having much knowledge because of their past experience, but there is always a need for improvement. so we will give training to our skilled labor for at least three to 4 weeks. Semiskilled labor which is not as much expert in their respective fields but they are in the process of continuously improving their skills. We will give them six to eight week training.

23

Unskilled labor is totally unaware of what to do. So we will pass them through complete training process. It can be of three to four months.

CUSTOMER SEGMENTATION
Variables

AND

MARKET ANALYSIS

Typical Breakdowns

Geographic
Region
Country-wise, province-wise, city-wise, etc.

Demographic
Age Gender Income
Under 25, 25 - 45, Over 45 Male, Female A - F Households with Class A households having the highest income and Class F having the lowest.

Education

Uneducated, Primary School, Matriculation, Intermediate, Bachelors, Masters, PhD.

Psychographic
Social Class
A - F Households - A being Upper class and F being the lower class.

Behavioral
Purchase Occasion Benefits Sought User Status Loyalty Status
Regular occasion, special occasion Quality, service, economy Nonuser, ex-user, potential user, regular user None, medium, strong, absolute

24

TARGETING
Variable

AND

POISONING STRATEGY
Typical Breakdowns

Geographic
Region
Oilum cooking oil is a nation wide brand. Although our initial focus is Bahawalpur market and its surrounding areas. Oilum Banaspati is a nation wide brand, but our initial focus will be on Cooking oil then we will come to banaspati brand to go on nationwide.

Demographic
Age Gender Income Education Social Class Lifestyle and Personality
25 - 45 Traditional female housewife Households A and B* At least Matriculation

Psychographic
Households A and B* Oilum Cooking oil is mainly targeted at housewives who are more or less in the 25 - 45 age groups. This woman is traditional but educated (at least completed her matric) and loves taking care of her family. She is caring and nurturing and wants the best for her family. She is quality conscious and health conscious and will be prepared to pay a premium price for good quality products. She goes for cooking expertise, good taste and high quality. Oilum Banaspati is targeted at the housewife who though wants the same taste as Desi ghee wants to provide her family with a healthier alternative though she is not totally obsessed with health considerations.

The Class A households are the highest income groups and Class B households are the middle-income groups. These are the household who are willing to pay a premium price.

25

COMPETITOR ANALYSIS
As we know that there is an intense competition in FMCG sector. Decent Group of Industries is going to start its operations initially at local level then on national level. So our competitors at national level will be Dalda, Sufi, Habib and Sultan. They are also targeting elite class and our focus will also be elite class.

COMPETITOR 1: DALDA
Strengths:

1. They are market leaders. 2. Quality 3. Brand image

Weaknesses:

1. High price 2. Not having Olive oil in ingredients

COMPETITOR 2: HABIB
Strengths:

1. Brand image 2. Quality 3. Market know how

Weaknesses:

1. High price

COMPETITOR 3: SUFI
Strengths:

1. Market know how 2. Brand image

26

Weaknesses:

1. Does not want to go at national level 2. High price

SWOT ANALYSIS
SWOT analysis is the analysis of strengths, weaknesses, opportunities, and threats of organization as compared to competitors. SWOT analysis of the Decent group of Industries is as under..

Strengths:
1. Plants location in Bahawalpur, which is an agricultural area so raw material access will be easy. 2. Plants site at Karachi road will results in less distribution cost. 3. In partnership partners education considered a major strength so this organization will have this strength. 4. Technical innovation as compared to competitors.

Weaknesses:
1. Dynamic and flexible changes in our market sector. 2. Less per unit profit. 3. Low local market know how because of initial phase of business.

Opportunities:
1. Market has potential of growth as people are health conscious, so providing them a fat free cooking oil is an opportunity to enter in market. 2. If our plan will result in success by using same model we can extend the company by starting a other plant in same or different area. 27

Threats:
1. Strong national level competitive brands. 2. Financial threat may be we have to face. 3. Also local level strong competitive brands. 4. Threat of new entrances because of open market.

MARKETING OBJECTIVES
1. Provide good quality and taste to the target market. 2. Capture a large market share of Bahawalpur market. 3. Maximization of profit. 4. Our product is measurable in terms of sales and profits. 5. We want to achieve a 5% growth rate annually. 6. We have settled our goals with respect to time frame.

MARKETING STRATEGY
STRATEGIC OVERVIEW
We are using differentiate strategy, because we are differentiating our product in such a way that we are offering such a cooking oil and Banaspati which is very health friendly. The customers who will use our products will get the protection from diseases like diabetes, heart attack, because these diseases are caused by increase in cholesterol level in human body. But our product is cholesterol free and having great taste and is environment friendly.

28

Primary customers their key influencers, decision maker, and economic buyer
Initiator:
Housewife is always an initiator in the whole family, because housewives always see the while familys health.

Influencer:
Influencers are those factors or people who influence the buying process. They can be any people or any events. 1. Family is a great influencer in buying process for cooking oil and Banaspati ghee 2. Traditions like any event like parties, birthdays etc. 3. Advertisements and commercials through different channels. 4. A friend affects the buying process. 5. Neighbors are also influencers in buying process.

Decider:
1. Housewife is main decider in a family because they have all the responsibility for the cooking, and they do mostly all the shopping. 2. Husband decides the brand for whole family health. 3. Many families send the servants for shopping so what brand they decide its on their own choice.

primary users
Primary users are housewives because they have all the responsibilities of kitchen. Secondary users will be all the persons who use our product in the family.

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POSITIONING, VALUE PROPOSITION

Main competitors of Oilum cooking oil are Dalda, Sufi, Habib. They are charging high prices for their products, they are also cholesterol free brands but in their products features olive oil is not included. Olive oil is very good for heath and it provides taste. This ingredient is for the fats, because it causes in the reduction of fats. We are going to provide a high quality product in comparatively low price.

PRODUCT STRATEGY
Product Portfolio:
Decent group of industries is going to offer 3 types of product. 1. Oilum Cooking oil 2. Oilum Banaspati 3. laundry soap

Product / Service Analysis

The description of each product offered by our organization is given below.

Description of Product 1Oilum Cooking Oil

Product Concept and History

Oilum Cooking Oil is for the whole family. We are going to offer a fat free product and the ingredients that we have included in it will protect the consumers from different diseases, like diabetes, and different heart diseases. The product also have a great differentiated taste, the people who want taste and also want the protection from diseases mentioned above, our product will satisfy their needs in efficient way.

30

Key Messages & Main Benefits:

Oilum cooking oil is a fat free product with delicious taste. Olive oil that we have included in its ingredients provides a delicious taste and this ingredient do not cause the diseases.

Features, Functions, & Benefits:

Include only the top 5 features from your MRD.

Features
Pure canola oil Olive oil

Benefits
Low in saturated fats, and high in monusaturated fats protection against heart disease by controlling LDL ("bad") cholesterol levels Corn oil is associated with reduced risk of chronic diseases. Needed for strong healthy bones vitamin E contributes to a healthy circulatory system and aids in proper blood clotting and improves wound healing.

Corn oil Vitamin A &D Vitamin E

Description of Product 2Oilum Banaspati Ghee

Product Concept and History

Oilum Banaspati Ghee is for those people who want delicious taste and healthy ingredients in their food. Our product will be having fewer fats. And the main thing will be a delicious taste in their food.

31

Features, Functions, & Benefits:

Features
Vegetable oils Vitamin A &D Vitamin E

Benefits
vegetable oils are more healthier than fats derived from animals Needed for strong healthy bones vitamin E contributes to a healthy circulatory system and aids in proper blood clotting and improves wound healing.

Description of Product 3Laundry soap

Product Concept and History

Laundry soap will not be branded by our organization. We will sell it as semi finished non branded product.

Estimated annual Sales:

Estimated annual sales for the first year are calculated as2110562 in pak rupees. Whereas in second year estimation is to earn revenue of Rs.2643757, and for the 3rd year of operations the estimated revenue is Rs.3356702. this estimated revenue is calculated for our three products, cooking oil, ghee, and laundry soap.

Geographical Scope:
All of our products and services are to provide best quality, taste and services to our customers. Our products have a broad geographical scope. We will provide best quality and fat free product with delicious taste to our customer. The ingredients of our cooking oil focus on the health and decrease in fats in human body. Besides many national and local

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companies are producing these ingredients but they have high prices, and people do not trust more on local products. National brands have high prices and a middle class family can not afford high prices. so we have a great advantage to focus them because our production plant will be in Bahawalpur and the raw material will be easily available here. So our brands will not have so much high prices comparatively of national or other local brands, because our cost for manufacturing is low.

Consumer Buying Process

1. We will realize prospects for our product by focusing on health. 2. Then slowly customers start to collect information from internal and external sources available in the T.V channels and newspapers. And he or she will collect information from our friends and family about our product.

Substitute Products/Services
Bahawalpur is not so much advanced city and here many village people still use Desi ghee in their cooking, and many people use animal fats too. So they are substitute products for our both brands banaspati and cooking oil.

Potential New Market Entrants

FMCG industry is always opened for new entrants. At local level our main competitor and new market entrance is Lives cooking oil by Shameem Group of industries. They are also installing their production plant in Bahawalpur and their target market is Bahawalpur.

Brand Strategy
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Brand name: Oilum Cooking oil Oilum Banaspati Logo and slogan:

PRICING
Product
1 liter pack 5 liter can 5 liter tin Half KG. pack 1 KG. pack 5 KG. Tin Pack 15 KG tin pack

Retail Price
Oilum Cooking Oil Rs.105/liter Rs.510 Rs.515 Oilum Banaspati ghee Rs50 Rs.95 Rs.465 Rs.1400

INTEGRATED MARKETING COMMUNICATION PLAN

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Advertising Activity
It is a paid communication tool in order to attract massive audience.

Objective:Advertisement will be used so those people all over Bahawalpur become aware our brands. It is the most effective communication tool because it addresses the mass audience. Secondly advertisements are widely seen by people whether they are on broadcast media or on print media.

Media Relations Activity

Media Relation activity is for both public relation and publicity.

Objective:Media relation activity will be used when we actually launch our products, to attract our customers. It includes local press, Cable, F.M Bahawalpur.

Online Activity
Online activity will be used only for B2B activities. We will give a plat form for our suppliers to be connected with our organization and make the ordering process efficient and easy. Other else for our whole sellers, to give orders on our website, they all will be registered on our website and they will perform their functions with our organization by an account given to them by our organization.

Sponsorship Activity
Sponsorship activity will also be conducted by our organization; our main focus is literate and knowledgeable people. They are the youth f Bahawalpur so we will provide sponsorship activities to the major events of the Islamia University of Bahawalpur and other some big colleges and schools.

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Retail Support and Other Collateral

Leaflets, letterheads, business cards and brochures will also be produced for public relation and publicity activities.

DISTRIBUTION STRATEGY
Organization Decent Group of industrys ultimate goal is to provide best quality products and delicious taste to its customers. So its main focus is to provide best quality products with affordable prices to its customers.

Risk Assessment:
We are going to start our businesses from Bahawalpur and major population of Bahawalpur has no attitude for risk taking or to change their initial behavior. What they are buying they continuously buy that, they have not so much risk taking or switching behavior, Though young generation has a changing attitude. This attitude may generate a great impact on our business.

Plan B:
If our initial plan fails then we have a plan B. we will exclude our ghee brand and our main focus will be to get success for our cooking oil brand, and we will start branding the laundry soap because this has low cost and we can generate more revenues from this.

Vision:
Give a Healthy and active life to our customers without fear of being fat.

Legal:

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1) Privacy: personal information will be collected about the members, employers and employees. And the private information will be kept private. 2). Health and safety:our organization main focus is the health of our customers. So we will be liable and will work on the cleanliness and expiration, So that no expired pack should be delivered to our customers that may cause any disease.

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