Marketing Analysis of Yummy Juice Bar for Launching a Juice Bar in Dhaka City

Executive Summary:

This marketing plan project has been prepared on “Launching a Juice Bar in Dhaka City” as a requirement for the course ‘Marketing Management (MKT-530) of the MBA program of STATE University. The objectives are to cover the important factors based on the strategic managerial approaches at our own business “Yummy! Juice Bar”. We by chance discovered a potential market for fresh juice in Dhaka city. To take the opportunity of this potential market we came up with an idea to set up an exclusive juice bar in the city of Dhaka. As it suggests, exclusive, we really meant to be; thus we have decided to serve a special portion of the potential market and that is the better-off families of Dhaka city.

Whenever we go to the green market we always look for fresh products with no added preservatives on it. Similarly customers will realize the value for fresh juice with no added preservatives on it. Our specialty will be in service production. We will offer the consumers an array of yummy and appetizing options to select from. Initially we will introduce local vegetable juices as one of our option and juice of foreign fruits and vegetables as another option, along with the traditional option of local fruit juices. We can bet the customers will experience a never experienced taste and discover the nature’s gifts at our place. A mother will never want to give her child a juice which, although states contains no harmful.

We believe that customers are always ready to pay a premium price for a quality product. We just have to ensure them that we are providing them the value for their money. We are providing a product to them which will prove the worth of their money. Once the customer is convinced that the product that we launched in the market is able to satisfy their demand, they will definitely pay a premium price for the premium quality of the product. We can bet the customers will experience a never experienced taste and discover the nature’s gifts at our place. A mother will never want to give her child a juice which, although states contains no harmful preservatives, but a cognitive dissonance will always work in the mind of the mom that whatever she is giving to her child contains chemicals.

Here is where we start the new idea, which is – To serve the people the real and unchanged taste of nature with a soft touch of modernization. It is only the fresh juice extracted from fruits and vegetables that comprise the real and unchanged taste of nature. So to implement the new idea, nothing can be more appealing than setting up a juice bar. We must develop a very efficient business plan to run the business successfully in the long run. We’ll consider all the factors necessary for establishing and running a successful business, including marketing, management, financing, operation, and above all, entrepreneurial opportunities and skills. This product will create a new demand in the fruit juice market.

Company Overview:

We are doing business on a small scale; just a juice manufacturing company unlike the other major competitors in the beverage market who have well diverse business. Our target is to penetrate and gain market shares with only a few items in the product line for the first few years. Followed by a success, like every other business we believe in expansion rather than staying small. Literally we are a small business for now but we do not intend to stay so after a short period of five year time span.

Taking all this into account, we have decided to name the juice bar as ‘yummy! Juice Bar.’ Yummy is an English word which we think can bring an excellent impact to attract the customer. What other name could one expect to represent a company related to the business of fresh juice? The name is also appealing as per our study.

A dialogue – ‘Tease your appetite’ has supported the name. The dialogue urges a customer to take the taste of the company’s product and service.’ Yummy! Juice Bar’ is expected to launch as a partnership concern consisting of three partners with an equal contribution to the business, which means each individual will own 33% share of the total business and we would also take  bank loan of BDT 1,600,000 from Dhaka Bank. The entrepreneurs initiating the business are:

1. M.Hasan
2. Khaled
3. Thaufhik
4. Masud

We have planned to locate ‘Yummy! Juice Bar’ in a lucrative place where we can gain competitive advantage. While planning, we also kept our target segment in mind. Thus we landed on the decision to locate our juice bar at Dhanmondi, Road 27. Customers can start teasing their appetite as much as they want from the 14^th of February, 2012.

In the meantime, we have decided to prepare ourselves as well as the company. We will be completing all governmental bureaucratic and legal affairs by December 2010. We wish to get the bank-loan sanctioned by March 2011. April 2011, we will be going into agreements with the space provider and suppliers. The decoration of the space is likely to begin in June 2011 and end by 20^th of July 2011. We will have finished hiring and training the manager and employees by 25^th September 2011. By the same date, we will also hire a cleaner. Our equipments, both foreign and domestic, as well as the apparatus are anticipated to reach our premises by 16^th October 2011. Then we start the New Year by teasing the customer’s appetite with a range of new and undiscovered taste.

Strategic Goals and Objective:

• Develop a market by providing our target segment the unexplored tastes of different fruits and vegetables.
• Provide quality service to our valued customers.
• Obtain 75% share of the total fresh juice industry of DhakaCity within the first three years.
• Increase the market of fresh juice by turning potential customers into actual customers.
• Create a brand and extend the market to Chittagong, Sylhet, Bogra and some selected cities by selling franchise within the first seven years.

Vision Statement:

“To create a brand and attain leadership in the industry of fresh juice in Bangladesh.”

Mission Statement:

“To help the customers explore the different tastes of nature by striving to maintain quality, service, and uniqueness; at the same time fulfilling the nutritional requirements of the customers.”

Key Products and Services:

People in Bangladesh are growing in number at a fast rate. People here are being increasingly affected by neighboring country’s as well as the western culture of food consumption while on the run. Fast food and canned drinks have earned considerable market compared to any other time. This emerging culture shows that our business has all chances of growing in the future. Besides there are growing concerns for better health both in terms of hygiene and nutrition which stands as a supporting field for our serving. It is certain that these trends in food consumption practices are likely to grow and so our scope for doing business.

As said earlier, there are no exclusive juice bars in Dhaka city, which actually indicates that we will be the first to enter into the exclusive sector of the industry. There are however some competitors in the general sector of the industry. But these competitors serve fresh juice as an alternative; they are not completely dependent on it. So they actually don’t have a strong strategy designed for the fresh juice industry. Here we can gain a competitive advantage over them by developing a special strategy, which they cannot copy or would not like to copy.

Talking with the personnel of different restaurants and fast-food shops, that serve fresh juice, we found that there is a good potential market for the industry. The industry gains pace during summer due to the availability of sweet and juicy fruits. This pace can be maintained through out the year if sweet and juicy fruits can be made available all the time. Setting up an exclusive juice bar in Dhaka city can disseminate the lacking currently availing the market. People will also have the chance to taste something different. An exclusive juice bar will surely have experts, so the service that a consumer will receive from an exclusive juice bar can’t be received from the places that currently sell juice. The consumers always demand quality, unique, distinguishable product and service at a reasonable price. In the service business, it is the service what matters to the consumers.

The personnel even said that they observe huge demand for fresh juice in the summer. The consumers demanding fresh juice later take lacchi or cold drinks due to unavailability of fresh juice. The company that provides better service wins the consumers’ heart. To win consumers’ heart it is very important to identify their needs.

We tried to find what the things that consumers look for are in a fresh juice. They look for many things of which one of the most important is unique taste and the serving approach. Then they also consider the environment, the behavior of the employees, the price of the service, and inexperienced taste.

Many consumers said that they would like to taste new items, especially strawberry. Again many said they would like to taste mixed fruits. When they were asked about the vegetable juice, they were quite surprised to learn that juice can be made even from vegetables. They were very much excited about it and wanted to try some.

So the consumers’ needs are unique taste, different flavor, quality service, mild serving approach, and reasonable price. The placement is another important factor to the consumers. They won’t travel long distance to consume a glass of juice. They also demand availability of flavor. The environment of the place is also an important factor to the consumers. Currently the market is quite apprehensive and the competitors residing in the market do not have the resources to capture a large amount of market share. The market share that the competitors have is floating. These shares keep on changing each and every year. As their main business is something else they do not bother much regarding the juice sector. So a new company can acquire their market share if the new company can fulfill the consumers’ needs.

Industry Overview and Analysis:

There aren’t any exclusive juice bars in the city of Dhaka. Some businesses like restaurants, fast-food shops, bakeries, and ice-cream parlors do serve juice, but only as an alternative to their existing business. They do not have any expertise on the juice segment. Besides their menu we only include local fruit juice. They do not serve vegetable juice nor do they serve juice of foreign fruits and vegetables. They use the normal blenders and juice extractors ranging from BDT 150-250 of different brands found in the local market. They do also lack up-to-date serving techniques and approaches. There is nothing unique or interesting in their service approach. When we go for the industry analysis in a very precise way, we mainly focused on the external factors that we need to keep in mind.

Industry Analysis:

The major producers:

•   Partex Beverage LTD.
•   Dhaka Beverage Industries LTD.
•   Asia Business LTD.
•   Holy Traders
•   Desh Beverage Co. LTD.
•   Bangladesh Beverage Company LTD.
•   A.M.C.L(Pran)

Future outlook and Trends:

All these industries are working to fulfill demands of the beverage industry of Bangladesh. They are our possible competitors. They are selling varied types of beverages to their customers starting from preserved fruit juices to carbonated drinks. These products are actually sold in the market. If we look at the selves in retail stores they have all of these varieties plus product from foreign countries. People would drink according to their choices anytime of the day. Beverage industry is growing in Bangladesh as suggested by the growing number of produces. If we just look around we will see people drinking beverages in various times of the day starting form early breakfast to late night parties.

This trend has grown fast and with it came along the need to serve people on the move. People would like to take a sip whenever they want; they don’t want to wait for the cup and the spoon and the jar to just walk to them so that they can mix the powder. Neither, they want to pour drinks out of one jar to another before they could drink! It is evident a ‘can’ or a mobile pack is the best choice for people especially when they are on the move. Besides if we notice we would see water bottles on dining tables are being increasingly replaced by other sorts of drinks; water is there but as an option. The market has grown enough to provide us with a healthy business scope. In the future it is certain to grow even bigger.

External Factor Analysis (PEST Analysis):

Environment Analysis: Although we are not looking for operating on a very large scale, likewise every other business we are, at least to some extent, vulnerable to drastic changes and unpredictable situations in the economy. The need to do an industry analysis before entering a business seems to be mandatory if one is to enter a market and be more certain of survival and sustaining. We have considered identifying trends and changes occurring both on a national and international level that may impact our new venture.

Bangladesh Economy: There has been for the last few months a serious slump or recession problem in Bangladesh from which it is yet to recover. There has been a major decline in investments as a result the GNP went down drastically. As a result, unemployment conditions in this densely populated country, was bound to worsen. Because of lack of faith of getting enough returns people are keeping idle money worsening the situation even more for some extent. People have less disposable money and as the inflation is being higher day to day, they are facing problems of decreased purchasing power. As a result the flow of money throughout is much slower in the economy compared to even two years back. However we are looking forward to be the ones who would invest rather that sit idle though situation for the time seems unfriendly. We are confident enough that our product idea is good enough and it would sell even under these conditions.

International Economy: If we are to take for an example a common country, which has its effects on several others as far as economic forces are concerned, is the US. The United States of America is undergoing a serious recession which they predict would last for at least a 5 year period. Besides oil prices also went up even higher triggering inflation. For these reasons and their effect we are trying to get in the market with a high quality low cost product, a combination rare to be found.

Technology: New technology is a blessing to us small business holders as they come as efficient and at the same time, at reasonable prices. We have options to buy technology from countries like Germany and China to fulfill both our general technical and contingency requirements. We have scope to buy quality technology which will ensure our product quality is maintained. In our business we don’t think we need to worry much about adopting new technologies every time they emerge as far as we have our old one doing the work of safe and quality preservation and canning.

The Legal system: There are laws in Bangladesh that does promise to support and help maintain a friendly business environment. Implementations of these regulations may vary from time to time. However, we are doing an ethical business and are concerned about maintaining an environment friendly approach for which we hope to get legal supports.

 Although these factors are uncontrollable, by these assessments we are a step closer for being more certain. We belong to the economy we deal in; being a part of it, it will be a continuing challenge to cope with it.

Porter’s Five Forces Model:

Threat of new entrants: Launching a juice bar in Dhaka city in terms of Bangladeshi perspective is totally a new concept. As we believe that in initial stage if we can work on our marketing strategy in a proper way, at that time we can get success in our business in long run. In upper middle or upper class there are lots of people who always want to taste new things. If we come up with this juice bar than our prime concern should be how to satisfied our target audiences and stick them to our bar as a loyal customer. In terms of the new entrants in the market, we believe that new entrepreneurs can attract to this business because, this business is something which will definitely click in the market and get profit within couple of years. So, obviously in our business new entrants can justified as a big threat for our business.

Rivalry among established companies:In initial stage of our business we don’t need to think about the rivalry among established companies. As we said earlier that we are totally new in this business and the business what we are going to launch is a new concept in terms of Bangladeshi perspective. To some extent companies like PRAN, ACME, Danish etc which company produce juice packet can be justified as our prime competitor in this business. But, again those companies doesn’t offer juice like in a service through bar viewpoint. So, we don’t need to worry about the established companies as a big threat to launch our juice bar.

Substitute Products: We can identify substitute products like, different restaurant in Dhaka city which offer fruit juice and other packet juice offered by different established companies which we discussed earlier. But, in our business we particularly focus on only specialized bar which only offers different types of fruit and vegetable juice. From our exploratory survey data we get to know that, no one or there are not a single companies or restaurant which specialized only on juice bar.

Bargaining Power of suppliers: In initial stage of our business the bargaining power of suppliers will be higher and we have to accept it. We need to make a close relationship with our suppliers. We have to identify the suppliers demand and on basis of that we have to proceed on. We think it will be better for us to maintain a close relationship with certain suppliers in our initial stage of business and always stick to them so that, in long run we can get the loyal suppliers. When we establish in this business in long run, we believe that, the suppliers will come to us and that time their bargaining power would be lower.

Bargaining power of buyer: In the primary stage of our business the bargaining power of buyer would be high. Our first intention is to how to capture our segmented customer and to do so we need to prioritize the buyer way of thinking. Whatever their expectation we have to implement it in our business. In other words, if we take our buyer view point as to come up with some different types of offer than it would be highly profitable for our business. We mean to here is that, our buyers can be the best advisor to differentiate our product offerings. We need to take all their view points in a very positive way.

Industries SWOT Analysis:

 Strength:

  Our first and most important strength is that we are entering a market that does not provide fresh fruit juice that’s why we got the chance to enter as a first mover advantage.

  We are providing fruit juices without using preservatives, which health conscious customers prefer.

  It is nutritious, hygienic and healthy unlike any other.

Weakness:

  Due to budget limitations we cannot promote our product on TV which would have given us a larger audience.

  Fresh fruit is hard to find all throughout the year and different season, so we have to stock fruits before time by extensive planning.

  Moderately high initial setup cost.

  Initially higher position in the Experience Curve mainly due to lower cost effectiveness in the early stages.

  Being a first mover is not a sustainable advantage and will encounter many challenges in developing a viable business. When new entrants will come we might loss our competitive advantage it we do not sustain.

Opportunity:

  Strawberry production in Bangladesh has begun thus “Yummy! Juice Bar” can be the first company to provide fresh strawberry juice in near future.

  After 2 to 3 years of operations we have plans to expand our promotions by making TV advertisements and by also doing cultural events.

  We have plans to build a website of “Yummy! Juice Bar” which will provide remedies of many home made juices.

  If we get our success within two to three years in Dhaka city than we will get the opportunity to expand our business in different area of Bangladesh.

Threat:

•   New competitors may attract to this kind of business and may be justified as threat for our business in long run.
•   Preservation of fruits and vegetable can be a hard task for us in initial stage of our business.
•   Fail to maintain consistent quality services may shift our target customers to other substitute products.

Competitive Advantage:

Customer Perspective:

  The consumers will experience a number of benefits by taking our service. First benefit is the nutritional value of the juice. As the juice will be made from fresh fruits and vegetables, it will possess all the nutrition that exists in the fruits and vegetables. The consumers will receive the nutritional value in full; no nutritional value will be wasted.

  The second benefit that the consumers will get is the different tastes and varieties. People of Bangladesh didn’t get the opportunity to drink juice made from foreign fruits and vegetables sitting in Bangladesh. Now we will give the consumers that opportunity. Besides we will always strive to improve the tastes and varieties of our menu, which is an added benefit to the consumers.

  The third benefit that the consumers will receive is in the quality of our service. The serving approach and method that we will follow is of international standard, and is followed in most of the ranked hotels and restaurants of the world. The consumers will be treated as VIP, which will make them feel honored and proud.

Company Perspective:

  Our product is fresh juice. The product itself has demand and appeal. Besides our offer of fresh juice extracted from foreign fruits and vegetables itself is a very appealing offer to the consumers. So we don’t have to worry much about that. We have to design the service segment of our business. The service that we will provide will distinguish us from the competitors.

  We will have imported juice equipments to prepare juice. These equipments will extract the juice out of the fruits and vegetables without demolishing the nutritional value. The equipment grinds the juice so well that hardly any fruit particle can be found. Then the apparatus, in which the juice will be served, will be ordered and made in the local market using attractive designs and company logo. We will ensure that these apparatus remain clean.

  We will train our personnel by a specialist from Thailand. The specialist will teach the preparation of different types of juice, and also serving techniques and approaches. Mixing two or more juices can change the tastes of the juice; this process is known as cocktail. The specialist will also train our personnel on this regard. Our personnel will be specialized in juice preparation. So we can assure that the service that a consumer will receive from us will be the best in town.

  We will create an environment that will be interesting to consumers. The environment will be pleasant and calm, so that the consumers don’t feel irritated. The consumers will experience and enjoy the game of colors that we will organize through the environment.

  Placement is a very important part of the marketing strategy. Being aware of it, we have decided to place ‘Yummy! Juice Bar’ at Dhanmondi’s Road 27. Dhanmondi is almost at the middle place as per our target consumer profile’s region part, under which we have Azimpur, Zhigatola, Elephant Road, Mohammadpur, and Mirpur.

  Our target consumer profile reveals students, businessmen, and professionals to be our consumers. At Dhanmondi there are a number of universities, schools, and offices. We wanted to be close to our consumer segment. This is another reason why we have chosen Dhanmomdi.

  There are many people who live in Dhanmondi area. Majority of these people have a family income of more than BDT 25,000 or more per month, which is another part of our target consumer profile.

Additional Strategic Consideration:

  We have decided not to set any fixed prices for our service as most of our supplies have fluctuating rates. Having a fixed price might result in a loss for us. So we will set the price from time to time. We will have a digital display board, where the price of each item can be found. The digital display board will be connected with a computer. Changing figures in the computer will change figures in the digital display board. So the consumers will have to go through the digital display board before ordering.

  We have decided to rent a space of one thousand square feet (1,000 sq. ft.) at Road 27 of Dhanmondi. We will begin with the interior decoration of the space in October 2009 and try to complete the task by the 20^th of December 2009. We have also designed a concept of the space by the help of one of our friends’ elder brother, who is an AutoCAD designer. The concept has been provided for the convenience. We have estimated a budget of BDT 1,000,000 for this task. The task includes tiling the floor, ceiling, painting the walls, making the shelves and counter, painting the shelves and counter, buying the chairs and tables, putting glass and aluminum frame on the entrance side, creating the entrance path, and the lighting of the space.

  We have decided to keep a depreciation calculation on the interior too. The calculation will be done using the straight-line method and for a 5 year period. Thus we have a per year depreciation of approximately BDT 200,000 (1,000,000/5).

Market Overview:

Potential Customers:

Our target customer would be middle, upper middle and rich people. We are going to do mass marketing. But our segments can be specifically identified as well. If we say, this is for all age, all sex, every locality, all income group of people. If we notice we would see almost every beverage being sold in the market contains added sugar, flavor and color for which it fails to attract all groups of customers. There are elders who want to avoid food color and added sugar; there are groups of young men and women who would not as well take in these ingredients. Besides there are moms who would not want there kids to actually make a habit of consuming these products that are not natural. We can satisfy both the health conscious and the others either with the taste, the purity, the hygiene or the nutrition facts. This way we would have chances to serve them all. Prices for us would make sure we can actually provide them to the lower level income groups as well even in remote areas.

It is one of the most important parts of marketing research and analysis. We cannot just go for the whole potential market. We have to select a target segment from the potential market and communicate with them in order to sell our service. The service we are going to offer is unique and exclusive. So we have to identify the consumer segment that is willing to take this unique and exclusive service, and is affordable of buying the service.

Target Consumer Profile:

• Middle class, Upper middle class and Rich people.
• Age – 18 to 55.
• Profession – Students, businessmen, and professionals.
• Region – The south part of Dhaka (Dhanmondi, Azimpur, Zhigatola, Mohammadpur, and Shamoly.)
• Income Level – Family income of BDT 20,000 and above per month.
• Health Consciousness – Moderate to high.
• Personality – Gregarious and ambitious.
• Attitude Towards Dining Out – Moderate to high.
• Willingness to Experiment – Moderate to high.

Size and Growth of the Market:

Like every other business we would need to go through the initial phase of development before anything else. We predict the first year is our time of implementing the plans of business set up which includes the physical location setup, filling the machinery requirements, hiring the personnel, starting production, etc. We predict by the end of the first year we will have all our networks set up to actually go for production. By the middle of the second year we believe we will start to have our product on the shelves of the retail outlets of the major cities. From there onwards our struggle for marketing the product continues as we try to get to the customers through our depots in the six divisional cities of the country.

We see our products to increase sales in the 3^rd year and continue to do so fulfilling our requirements of business extension. From the last quarter of the third year we expect to add more flavors of juices based on returns from the first three years of business operation. Later the business is expected to grow and mature and we expect it will be long before the saturation is over and there is a decline. We believe we will have product in our pipeline to support any sorts of decline to our sales, each time adding a possible successful product and diverting from the ones that might fail.

We believe this business has great potentials and is a very lucrative ground which itself will provide us with enough scope for business continuation and expansion in the later years. If we consider over the social and economical structure of Bangladesh as described above in our PEST analysis, we can see that our potential market is growing. The social factors and busy life of the people of this age group and income will attract them towards our training centre. Similarly the economical factors and growing GDP of 6.5% shows that the people will have a higher income in future and they will have more money to spend on their entertainments.

Lastly, the reason behind considering this segment as our potential customer is the population structure of Bangladesh. If we look closely to the population structure we will see that the middle class has is the biggest one and by targeting them we can increase our customer base. Apart from that the population structure of Bangladesh has more people under the age of 15, so if we target their parents and influence them to train their children to enhance their abilities we can also increase our customer base

From the above analysis we can say that our market is growing enormously and we have many options to utilize this opportunities and increase our customer base. People nowadays are bored with their daily routine and they need to have some change and want new ways to bring these changes in their life. Here, is the opportunity for us to make a mark and serve them to make profit.

Strategic Group Analysis:

We don’t have any direct competitors in our industry but there are some indirect competitors like sports clubs, gyms, libraries etc. as it is evident from the above figure we would be offering customers superior quality service,  and we would be pursuing a skimming pricing strategy so our prices would be quite high. We are bringing differentiation in our service by offering customers with the option to learn so many under one roof, introducing customization in our service packages and by training customers in new and innovative ways. Customers will be the sole focus of our business. We would strive to understand their needs and try to meet them better than competitors. There feedback will be incorporated in training styles and we would make sure that even in a batch each trainee will receive personal care and attention.

Company Value Chain Analysis and Operational Plan:

Existing Core Competencies: We think that our bar location is situated in a remote location in Dhaka city. Lots of private universities and Schools are around there in Dhanmondi. If we can target those customer and give them quality service with our different products than, may be in long run those customers can be justified as a loyal customer for us. We have lots of space inside our bar which is around 1000sq feet.

So, in long run we have the opportunity to differentiate our offerings by introducing coffee zone, children’s park area etc. Another remarkable core competency would be our efficient workforce. We have decided that we will treat each and every people as our employee. We will maintain a strong code of conduct inside our bar because in initial stage our first goal would be to give prompt service to our customers with a good behavioral attitude from our employees. We have to treat each and every customer as our king and fulfilling their demand would be our main goal.

We believe that we got the better technology to produce juice from the fruit and vegetables. We have a huge investment for our equipment purpose. At the same time we have plan to hire a trainer from Thailand who can teach our employee how to make different flavors of juice. He will just share his experience with our employees and hopefully our employees would be quite skill enough through that training procedure.

The inside environment of our bar would be high in quality and we have a plan to take some advice from the interior designer about the decoration of our bar. First of all we have to attract the eye of our customers and later on the so called service will come. But it doesn’t mean that our service is the secondary one for our business. Service should be the primary focus for our business and our different offering for our customer can be justified as core competencies for us.

Future Competencies: We are new in this juice business and in the Bangladeshi context this type of business is totally new, so here we got the opportunity to get first mover advantage in this business. There is a huge opportunity for us in near future to expand this business in different part of Bangladesh, like Chittagong, Rajshahi, Cox’s Bazar and so on.

We believe that there is not any age barrier to drink fresh juice; it’s for all. So, right now our targeted customers are Middle class and Upper middle class people but in near future if we can manage to get profit within two to three years, we have a plan to target the mass customers. If we can do so, our juice bar can get the monopoly advantage to dominate in this type of business.

We are doing business on a small scale; just a juice manufacturing company unlike the other major competitors in the beverage market who have well diverse business. Our target is to penetrate and gain market shares with only a few items in the product line for the first few years. Followed by a success, like every other business we believe in expansion rather than staying small. Literally we are a small business for now but we do not intend to stay so after a short period of five year time span.

Product/Services:

Products:

We are going to manufacture high quality natural juice from three different fruits. This product will be appropriate for all groups of people at all ages as it comes naturally. Our product is based on the fact that it is very popular among people but he market still fails to support the actual demands.

It can be argued that a demand for our product is well satisfied then in that case these people actually fail to understand the fact that there is enough scope to create demand here as well. We are going to serve pure melon, sugarcane and coconut juice in cans which nobody in the entire market is doing at present. This way we can actually create demand in new markets as well as take away customers from the existing market. Our strengths in this product is the exact taste, no added ingredients and safety of hygiene.

Watermelon: People can buy these big fruits from the market often at high prices, carry them home and serve. This whole process can get troublesome. We will serve the exact taste but no trouble of cutting and making juice out of the melon. We will serve the exact nutrition and freshness without seeds in it.

We will make it easiest for melon lovers to have melon! Not only u can have melon but have it without going through the works of cutting and peeling them and hesitations of price rise as we will provide all of it in uniform prices throughout the year and actually make it possible for you to have your favorite fruit when you are on the move. It will be sweet water in your favorite flavor. Just open the can, the melon is all yours !!

Sugarcane: Have you ever tried peeling the skin out of a sugar-cane to actually bite it to break it and then chewing it to drink the juice??? If not you should try at least for once. This way we are sure of having one increased customer.

If you are already a sugar-cane fan you must have had experiences of either chewing it or drinking it from the open market sellers. Think of the hygiene factor for once! People are drinking a lot of germs. Sugar-cane juice is very healthy and can give instant energy for better brainwork. Sugar is all brain needs; for instant relief from stress and refreshments one could very much use a tasty can of sugar-cane juice. If you love sugar-cane, you know where to get it. It will be sweet water in your favorite flavor. Just open the can, the sugar-cane is yours !!

Coconut: Coconut water is liked by all. You would hardly find a person who complains about it. Coconut has been very popular for all time and we believe people would buy more of it if only they were allowed to. First comes availability an then the price. In open market these are sold for quite high prices and people faces the same trouble of carrying them. We would produce two different juices from coconut:

1. The clear coconut.
2. The one with the pulp.

People will get their favorite fruit drink at the grasp of their hand all ready to carry and take sip anywhere, anytime of the day. It will be sweet water in your favorite flavor. Just open the can, the coconut is yours!!

Facilities: There would be a huge free space for the customers, so that they feel comfortable whenever they will visit our bar. We will introduce a book where customer can write their own thought after taking our services. Over there, they have the opportunity to recommend us to introduce different types of fruit juice which they love to drink. This type of thought will help us to come up with new offerings all the time. There would be a kid’s zone where kids can play and enjoy their time. There would be two big size screen TV in the North and West part of our bar. It will help the customers to enjoy the time and spend a quality time inside our juice bar.

Our juice bar will be very quite, calm and adjustable. There will be a very friendly atmosphere which we will ensure by our friendly behavior and a mutual relation among the customers. The whole inside area will be covered by carpet and it will be fully air-conditioned. It will have light colored walls. The waiting room will give a sense of refreshment since it will be decorated with low sofa set, lamps, a small fountain and flowers. The other rooms will have fruit juice machines with enough distance between each so that people do not feel congested. Every room will have a free space where people may sit and chat with each other or simply roam around. There will always be music in the back ground to enlighten the customers. A sweet scent will always be maintained in all the rooms. Therefore, we will assure a nice fragrance all over the gym all through out the duration.

Equipment and Machinery: We will be requiring several equipments to produce our service. We need refrigerators to store the fruits and vegetables, especially the foreign fruits and vegetables, as we will not be receiving frequent supplies of those. We have made up our mind to acquire two refrigerators, each worth BDT 55,000 from the local market. However we will have to acquire the juice extracting equipments from the foreign market, which means we will have to import these equipments. From the various information we have collected and from our in-depth thinking, we have decided which equipments to acquire, how many to acquire, and which brands to acquire. The list has been provided for convenience, along with the equipments current market price. We have planed to get these equipments from Bangkok, the capital city of Thailand. The main machinery is the fruit squeezing machine, other than that apparels such as, peeling equipment, cleaning bowl, large juice container and a gas burner is required.

All the above equipments are given 5 years warranty except the Black & Decker Citrus Mate Plus, which receives a warranty of only a year. But the use of it is very limited. So we will use only one at a time and can easily continue for 4 years. The exported Equipments would be depreciated on a straight line method of 5 years.

Safety Measures: We know the risks involved in any kind of machinery work and the production plant as a whole. Any thing can go wrong at any time.

We are the owners of the business and it is our responsibility to ensure safety for the workers and so we have planned to build multiple fire escapes in case of an emergency. We will also provide fire extinguisher all throughout the factory and in addition we will have a trained medic employed for health care of the employees and workers.

To serve the juice to the valued customers, we will be requiring goblets (drinking glass or cup with a stem at the bottom), schooners (tall drinking glass), and glasses with handle, saucers, tray, and other cookeries. We will order and make these apparatus in the local market with our brand name marked on the apparatus. A list of the apparatus, along with other details has been provided here.

Production and Manufacturing process: Our manufacturing process is simple, after we purchase the raw materials (fresh fruits), they will be delivered to our manufacturing plant. The coconuts will have to be hand peeled and the inner shell will be feed directly into the machine for extracting the coconut juice.

The case is same for watermelon. To keep our cost low, we have to depend on manual labor more for cutting the melons. The watermelons have to be cut into half, extract the pulp with a scoop and then put in the squeezing machine for juice extraction.

Sugarcanes can directly be thrown in the machine as it does not need peeling for perfect juice extraction.

After the juice extraction of the fruits is done, the juice in its raw state must then be filtered to get rid of impurities like seeds, etc. The filtered juice must then be boiled for some of the water in the juice to evaporate. Evaporating the juice will give it a thicker taste and thus more appealing to the consumers.

Research and Development: There are lots of scopes for us to involve in R&D system and it is mandatory for us to work more on R&D. It is necessary for us because, we are in such a business where every time we need to come up with some different items for the customers. We can not offer same item to our customer because at that time they may bore to our offerings. We have to come up with different offerings by blending different fruits and vegetables. Our efficient workforce can go to net and can download different types of recipes or they can use their own brain to come up with new offerings. The bottom line here is that, R&D justified as a huge impact throughout our business.

Quality Assurance:  We would follow all the legal requirements that are applicable in Bangladesh and would apply for BSTI Certificate that is concerned with quality. We would treat the fruits and vegetables in such a way that everything remains fresh for a longer time and hence, we can maintain the quality.

Marketing Plan:

To establish our business in a proper way or to sustain in the market as a competitive way it is mandatory for us to rely more on marketing activities or marketing plan. We are new in this juice bar business and if we want to let the people know about our business than effective communication with our targeted customers is necessary. And, marketing is the way which will tell us how to proceed on in every step of our business. There are few goals we need to keep in our mind whenever we go for our marketing planning. Our prime goal is to attract our targeted customer (middle and upper middle class) in a very short period of time and make loyal customer through our quality services. Never compromise with quality because quality assurance is the most well known way to attract the customers. We need to aware our targeted customers about the benefit of juice and for that reason we have to figure out in which extent we can promote this to our customer.

  First benefit is the nutritional value of the juice. The consumers will receive the nutritional value in full; no nutritional value will be wasted.

  The second benefit that the consumers will get a different tastes and varieties. Besides we will always strive to improve the tastes and varieties of our menu, which is an added benefit to the consumers.

  The third benefit is that, the consumers will receive is in the quality of our service.

Besides the consumers will receive many more benefits such as fresh juice, no additives or tastemakers that harm the body circulation system, chance to choose from a large number of options, and so forth. Taking all these into account we can say that the establishment of ‘Yummy! Juice Bar’ will benefit the consumers. The consumers will get what they deserve

Marketing Strategy:

Marketing is typically seen as a task of creating, promoting, and delivering goods and services to consumers and businesses. Whenever a plan for a business is made one of the most crucial factors, which needs to be discussed elaborately, is the marketing plan. A good marketing plan can lead a normal idea to success; where else a weak marketing idea destroys even a very great idea. So we have put a lot of emphasize in this section of the business plan.

Appeal to the Consumers:

Fruits and vegetables are the sources of vitamins, minerals, and many more elements. So fresh juice extracted from fruits and vegetables do have an appeal to consumers. Besides the taste that it creates is another appeal to the consumers. The product already has an appeal to the consumers. What we have to do is to enhance this appeal by adding more benefits.

4Ps of Marketing:

Product:

Our product is fresh juice. The product itself has demand and appeal. Besides our offer of fresh juice extracted from foreign fruits and vegetables itself is a very appealing offer to the consumers. So we don’t have to worry much about that. We have to design the service segment of our business. The service that we will provide will distinguish us from the competitors.

We will have imported juice equipments to prepare juice. These equipments will extract the juice out of the fruits and vegetables without demolishing the nutritional value. The equipment grinds the juice so well that hardly any fruit particle can be found. Then the apparatus, in which the juice will be served, will be ordered and made in the local market using attractive designs and company logo. We will ensure that these apparatus remain clean.

We will train our personnel by a specialist from Thailand. The specialist will teach the preparation of different types of juice, and also serving techniques and approaches. Mixing two or more juices can change the tastes of the juice, this process is known as cocktail. The specialist will also train our personnel on this regard. Our personnel will be specialized in juice preparation. So we can assure that the service that a consumer will receive from us will be the best in town.

We will create an environment that will be interesting to consumers. The environment will be pleasant and calm, so that the consumers don’t feel irritated. The consumers will experience and enjoy the game of colors that we will organize through the environment.

The marketing plan provides detailed description on how the product & services will be distributed, priced and promoted. Through marketing research and analysis, critical marketing decisions and sales forecasting will also be covered in this section. There is a saying that a simple idea can be turned into the success of a venture through a good marketing plan.

Price:

Setting a price that appeal to the consumers is a very important aspect of the marketing plan. If the price set is too high then people will go for the substitutes; if the price is too low then people might think our product is of low quality. Since there are, other similar juice companies in the market we have to keep their product price offerings in mind while setting a price. We have decided not to set any fixed prices for our service as most of our supplies have fluctuating rates. Having a fixed price might result in a loss for us. So we will set the price from time to time.

We will have a digital display board, where the price of each item can be found. The digital display board will be connected with a computer. Changing figures in the computer will change figures in the digital display board. So the consumers will have to go through the digital display board before ordering.

 Keeping in mind that price is a variable; we cannot permanently fix the price of our product in long term. Political, economical, legal and environmental factors of the country will play a huge role in deciding the final price of our product. If a price change does occur then print ads in newspapers will be given for customer knowledge.

Placement:

Placement is a very important part of the marketing strategy. Being aware of it, we have decided to place “Yummy!Juice Bar” at Dhanmondi Road 27. Dhanmondi is almost at the middle place as per our target consumer profile’s region part, under which we have Mohammadpur, Lalmatia, Mirpur, Azimpur, and Zigatola. This is one of the most important reasons that we have decided to place ourselves at Dhanmondi.

Our target consumer profile reveals students, businessmen, and professionals to be our consumers. At Dhanmondi there are a number of universities, schools, and offices. We wanted to be close to our consumer segment. This is another reason why we have chosen Dhanmondi.

There are many people who live in Dhanmondi area. Majority of these people have a family income of more than BDT 20,000 or more per month, which is another part of our target consumer profile. Another quite good reason to place the new venture at Dhanmondi.

Promotion or Advertising Strategy:

We will move on with a different promotion technique. Our main promotion technique will be the consumers themselves. A satisfied consumer brings in more consumers. Our target will be to please and satisfy the consumer. If a consumer is pleased, s/he will discuss regarding the matter with his/her family members, friends, and relatives. These family members, friends, and relatives will come to our place sometime or the other. Thus we will have ourselves promoted.

We will also make an inauguration promo so that the potential consumers can learn about our service and us. Under this promo, we will publish advertisements in the daily newspaper on the day of our inauguration. We will also publish and distribute leaflets and flyers during the first week of our operations. After this initial promotion, we will not go into any traditional promotions for the first three years.

As more and more companies enter into the Bangladesh market, promotion is becoming a key factor for business and competitive success. We live in a country of population over 140 million and to create awareness of a new product in the marker for only 10-15% of the people is very hard. Our goal is to provide the people of Bangladesh fresh and unpreserved fruit drink. Mass marketing is the only way that we can promote our product with a limited budget.

WHICH MEDIA WILL USE?

Billboards: This is the low cost-per-contact channel currently available and is very effective as well. We will focus on making very attractive and colorful billboards throughout the city centers where the concentration of people is the most.

The billboards must be relatively big in size to attract attention as small billboards are usually over shadowed by larger billboards of other companies.

Newspaper: This channel for promotion also has relatively low cost-per-contact and is a very good way to reach large number of audience within short time and little effort. During the first few months of our business we will print ads on the front pages of newspapers and eventually after public awareness has been created,

we will slowly move to the later pages and later stop putting print ads. Future print ads in the newspapers will only be provided for price changes and new product notifications.

Radio: For the purpose of our business, this channel is the best because of our budget limitations. Promoting through radio will have the lowest cost-per-contact of all channels and the highest reach as well.

Radio channels like “Radio Foorti” & “Radio Today” in Bangladesh are evolving and trying to providing more and more rich entertainment to the audience. Radio is accessible to places even with no electricity in the furthest rural areas of Bangladesh.

Transit Ads: These are the advertisements we see on large buses like Volvo. This form of advertisement is very effective as these buses roam around the entire city multiple times in a single day. The chance of people spotting an ad on buses is very likely.

Pamphlets & Leaflets: Our plan is to hire freelancers and send them to popular schools and collages to hand out leaflets after school ends. The leaflets will contain our product offerings and price.

WHICH MEDIA CHANNELS NOT TO USE?

TV channels: Due to budget constraints we cannot promote our product on TV. Acquiring free slots in peek viewing times on TV channels is very expensive. These popular slots are usually taken up by big corporate giants and multi-national companies.

We do have future plans to promote using this channel when the business is up and running and our product starts selling well in the market after 1 or 2 of years.

Promotional Budget Allocation on Different Media:

Product Forecast:

During the preproduction stage, we will be working on developing other fruit juice like; Litchi but wont be putting it in production in the first yeas. Our capital is small so we don’t want to take too much risk during the introduction stage. If the initial products sell well in the first year then we will start introducing other fruit juices in the coming years.

Three Year Product Forecast:

1st Year: During the first year we will introduce our original three fruit juices; Coconut, pineapple and sugarcane. It is essential in the introduction stage to monitor our distribution channels and keep an eye on sales figures and promotional response. We would have to use tactical strategies to counter any critical problems we face.

2nd Year: After the first year is over we will try and introduce a new fresh juice to our product line. Litchi as we all know is a favorite fruit to many Bangladeshis. If we can provide the sensational taste of litchi in a juice form then people would definitely want to try it.

3rd Year: We have a very unique plan prepared for the 3rd year. Now Bangladesh is importing and planting strawberries in farms. We have already made contact to some such producers of strawberry in Bangladesh. So when in future the production of strawberry increases we will hopefully be able to introduce the first fresh strawberry juice in the country.

Controls:

The business we run is simple and very straight forward. We will have a specific amount to raw material coming each month. We would know if demand increases by keeping an eye on weekly sales.

Grabbing the Potential Market:

We have designed a target consumer profile and by maintaining to that profile we will be able to grab only one side of the potential market. However we wish to grab more of the potential market. But before that we want to have a majority portion of the market share of our designed target consumer profile.

Trying to grab the other side of the potential market, we might end up winning nothing. So we have decided to concentrate only on one side at a time. In our first three years we will emphasize to grab the majority portion of the market share of our designed target consumer profile.

 After the initial years of business, as ‘Yummy! Juice Bar’ gets established, we will try to serve the other potential markets. We wish to establish ‘Yummy! Juice Bar’ as a strong brand, so that people will come up to us and ask for franchise, we will not have to open any branches. We will reach the other side of the potential market by the help of other people, but through our quality service.

As far as our business is concerned, it is related with fruits and vegetables, which are the gifts of nature. So we will actually have to emphasize on producing service. It is the only mean that differentiates a company in this particular industry. To produce our service, we will be requiring fruits and vegetables as our supplies, equipments to store the supplies, equipments to produce fresh juice out of the supplies, trained personnel to carry out the operation, apparatus and decorative materials (i.e. flowers) to serve our valued customers.

Getting the Supplies:

As said earlier, we will go into agreements with suppliers for our supplies. It’s very important to receive the supplies in time to serve the valued customers with quality service. So we have decided not to rely on a solitary supplier. We will go into contracts with multiple suppliers for local fruits and vegetables. There are a number of agents in our country, which import foreign fruits and vegetables. We will go into agreements with at least three of these agents in order to receive foreign fruits and vegetables in time.

The selection procedure of the suppliers will be done based on ‘Findings and Analysis Approach.’ Under this approach, we first collect the list of suppliers and their customers. Then we go to the customers of those suppliers to receive feedback. This approach helps to identify the efficient supplier in the business world.

We will also need some supplies of flowers to serve our unique service. However, we will not be requiring too much of it. So we have decided not to go into any agreements with suppliers in this regard. We will have the flowers from the flower shops based on informal agreement that is word of mouth.

Human Resource strategy and planning:

Management Style:

In today’s business world a company’s success depends much on how well the company is managed and its management team. There is no definite rule of well management nor can we suggest a specific management practice to be the best. Different companies follow different management practice and approach. Again these practice and approach is updated from time to time in order to stay competitive in the industry.

We have decided not to stick to a specific management plan while operating the business. We will start of the business based on our own management plan. However, this plan will be modified and improved from time to time. We have made up our minds to keep the main management of the company in our hands. It’s better to manage owns business in the initial years. As the company grows large, we might thing of decentralizing the management task. However, the manager and employees will be given some power and authority to take decisions to carry out the day-to-day operations. They will not be permitted to take any strategic decisions, or any decisions that can hurt the company image.

Recruiting and Training Human Resources:

As we said earlier, we will recruit and train 4 employees as well as hire a cleaner and guard in the first year of business. One person will be hired for the managerial post and the other four will be hired for the post of hospitality philanthropist. In other places, the post is referred as waiter or attendant. But we would not like to dishonor the person working in that particular post by calling the person waiter or attendant. As per our perception they are selling their generosity, which is indeed a great work. So to respect their work we have named their post as hospitality philanthropist.

People who are interested to work with and through others, are friendly and generous, enjoy serving and hospitalizing, and can interact with people very well will be greatly appreciated for the managerial and hospitality philanthropist posts. The selection phase for the two posts will be divided into two parts: first, an EQ exam, and second, an interview. The persons who will obtain satisfying marks in the EQ will be selected for the interview. We will interview the selected persons and based on the interviewees’ feedback, we will finally make the decision on recruiting. For hiring the cleaner, we will highlight more on the reference section.

After being recruited, the manager and hospitality philanthropists will have to go through a training program of fifteen days under a specialist from Thailand. The specialist will teach them how to create various tastes from the same fruits and vegetables, and also preparing cocktails, which means making a mixture of different juices. The specialist will also train them on different serving approaches and serving means.

Responsibilities of the Personnel:

The manager has to manage the business and communicate with us everything regarding the business. It’s his/her responsibility to monitor and execute the business towards success and growth. S/he should communicate with the suppliers on a regular basis and maintain an affable relation with them. S/he should have good controlling and motivating skills. S/he might have to carry out the responsibility of hospitality philanthropist in busy times. S/he is responsible to keep track of the sales and accounts.

The responsibility of the hospitality philanthropists will be to welcome the valued customers, receive orders, prepare the orders, and serve the orders. They will also have to keep the environment radiant and pleasant. They might have to carry out some additional responsibilities such as the responsibility of the manager in his/her absence and the task of washing the apparatus in the absence of the cleaner or in busy times. It’s their responsibility to keep the juice extracting equipments clean. They should also handle the equipments with proper care.

The responsibility of the cleaner will be to wash and clean the apparatus, and to keep the space and its surrounding environment clean. The authority reserves all the rights to use the cleaner in other activities of the business if required, unless the activity doesn’t go against the interests of the country or against any labor & civil rights act prevailed in the nation.

The monthly remuneration of the owners, the manager, the hospitality philanthropists, and the cleaner has been set by the authority to be as follows:

Besides two bonuses will be provided in a year, each equivalent to the monthly remuneration. These bonuses are to be provided on the occasion of religious events prior to the event dates.

Another type of bonus will be available for the hospitality philanthropists, which we termed as ‘innovative bonus.’ The hospitality philanthropists are encouraged to innovate new tastes and serving approaches. If their idea is liked by the authority and inscribed in the “Yummy!Juice Bar” menu, then they will be eligible for this bonus. The person selected for this bonus will receive a cash of BDT 1,000 and a 10% commission on each unit of sale of that specific item till he remains a member of ‘“Yummy! Juice Bar”.

Managing Relationships:

We will contact with the manager on a regular basis and collect the feedback. We have decided to hold a monthly meeting with the manager, hospitality philanthropists, and the cleaner. In the meeting we will discuss the current business pros and cons. We will try to find solutions to the cons and empower the pros. We will also receive feedback from the employees about their feelings as a member of ‘“Yummy! Juice Bar.” Any comments will be appreciated in the meeting.

We will also organize a yearly meeting with the suppliers. The manager must also be present in this meeting. In this meeting we will discuss on making the supplying process more effective and efficient. We will discuss the problems and try to resolve it. We will also emphasize on long-term relationships and take every necessary step to maintain it.

There are certain remarkable things we as a manager need to keep in mind whenever we go for interacting and motivating our employees.

Long term mentality: The management should think each and every employee as an investment perspective. They have to proceed on the procedure on a long term view point. If they involve in short term mentality and focus on the current performance than it will be hard for the student to spread their knowledge and transfer their work experience in their professional life. Management people should tell the employee or clear about their expectation towards the student through interactive communication. Management should think strategically, given their segmented understanding of the entire business. HRM is a complex and ever changing function, requiring a tremendous amount of technical knowledge. Most senior managers lack appreciation for the value of HR and its ability to contribute to the organization from a strategic perspective. Many simply understand the traditional or operational function of HR and fail to realize the contributions HR can make as a strategic partner. Managers throughout the organization often see the HR function as providing unnecessary bureaucracy to their work and being more of an adversary than an ally. So the managers and trainers should be act like a facilitator not as a dictator.

Human Resources Practices: One useful way to approach this component of HR strategy is from the framework of roles. Generally speaking, the roles that individuals assume in organizations fall into three categories, like- leadership, managerial and operational. In each case, behaviors associated with a given role should support strategic needs. There should be proper leadership roles which include establishing direction, aligning people, motivating and inspiring individuals and causing dramatic and useful change. Basically, these are the traditional roles of planning, directing, delegating, organizing, and coordinating. Managerial people first need to understand about the objectives is clearly understood. Secondly, give the employees the freedom they need to do their jobs. Thirdly, give employees the information they need to be successful. Lastly, give appropriate orientation to people on new assignments.

Realization about the core competencies: The best practices advocates, however, must convey successful-stubbornly refuse to adopt those practices. Management need to assume, perhaps, that competition drives out firms that do not adopt most efficient techniques-and that the intractable companies will ultimately fail. So, we believe that the notion of a single set of best practices may, indeed, be overstated. We believe that distinctive human resource practices help to create unique competencies that differentiate products and services and, in turn, drive competitiveness. There should be a fit between HR resource practices and business strategies can be traced back to manpower planning and is certainly not new in management circles.

Set clear expectation for performance: People who are involve in the training system needs to be clarified about their expectation to those students. There will be a proper commitment from senior management. At the same time management people should set the specific objectives for the systems. Managers will be accountable for the performance and development of their subordinates. Managers can involve in the design of the system. Effective performance management systems required students and supervisors to work together to set performance expectations, review results, assess organizational and individual needs, and plan for the future. One the other hand, the terms performance appraisal and performance evaluation imply a one sided judgmental approach to performance management, where employees have little involvement in the process.

Risk Analysis:

The business plan we have is not new to the market. There are multiple companies operating within and outside of Bangladesh. The companies selling product in this market have been doing business for years, some even for more than a decade. They have much experience and expertise in this business and can understand the trick of the trade better. They know all the loop holes and shortcuts in both political and cultural environment which have helped these companies to stay on the top spot. Such companies also have huge amount of capital which have allowed them to make exposure of their product in a lucrative way. Also the fact that they have good distribution channels which have allowed them to hit the target market easily.

 We are new comers in the market and it will take time for us to catch up to our competitors. The only thing that is making it possible for us to penetration the market is our unique fruit flavors and freshness of our offerings which our competitors are lacking in. Currently in Bangladesh, every thing which we buy whether it is vegetables, fruits, etc, purity lacks in each case. And when people would see and find out that we are giving them pure juice without mixing any harmful chemicals, they are going to go for us.

One more important thing is that the availability of certain fruits can only be found in specific seasons. So if in any case we sell more and have to increase our production of a certain juice in a particular season then it will be hard to find fruit locally to cope with demand. This situation may arise as fruits are a natural gift. In one season, productivity may be huge and in another, there may be very limited amount of production. In a case like this we will have no option but to import fruits from other neighboring countries at higher prices which will increase our cost and hurt our profits to some extent.

Not being able to promote TV ads during the first year is another big weakness for us. The TV media holds a wide number of audiences in the market and we will be lacking behind to target these audiences for the first year or so. TV ads can not only be used to promote the quality of products but also the most important part of promotion, which is consumer awareness. Without TV ads, it is very difficult to reach a huge number of audiences and as we would not be using this media vehicle in the first year, it would be difficult for us to generate awareness among people easily.

Contingency Plans:

Any business will not run perfect as planned, problems and complications can occur without notice. It is important to have a contingency plan for such possible problems before hand or else there won’t be enough time to implement a strategy to counter such problems. The future is always uncertain and although it is not possible to have a contingency plan for every possible situation, but it is possible to have some strategies and plan to counter common problems faced by businesses everyday.

We have prepared some contingency plan for possible complications:

• If we face shortages in selling figures then we will increase the frequency of our print ads and radio ads. Check to see if distribution of Yummy! Juice Bar is in the right places and that people can find our juice in the confectionaries.
• To cope with higher demands, we will take more bank loans. It is not easy to get a loan and so we will show the bank our increasing sales figures and demand of our product so that we can increase our production capacity.
• In case for sudden increase in fruit prices or economic inflation, we should not suddenly increase our price for Yummy! Juice Bar. There is a slight chance that consumers will see the higher price without any prior awareness and can turn to substitute products.  To minimize the risk for that, we have planned to provide print ads on news papers a week before we increase the market price of our products so that the consumers won’t be in any unrest.

Financial Management Plan:

Assumptions:

Financial plan is the most important part of a business plan. It is what that makes a business plan successful. So we have studied the market trends very well before designing this part of the business plan. First, we start of with the plan for investing activities. This plan shows all our investing activities to take place in the year 2009. It shows an estimated budget, which has been designed according to market analysis, for each of the investments and the total estimated budget for the plan as a whole. It also shows how much of the budget is to be financed by the bank and how much is to be financed by the owners. According to the investing plan, a total estimated budget of BDT 4,600,000 is to be invested for the business. 35% of it is to be financed by bank, which is BDT 1,600,000, and the remaining BDT 3,000,000 is to be financed by the owners. Each owner will finance BDT 1,000,000. A chart of investing activities has been provided.

Total population of our country is approximately 14 cores. In Dhaka city, more than 12 million people live here. The major portion of this population leads have scarcity of available food or lower class life. People who are leading mid-class or upper mid-class or upper class life are approximately 30% of the 12 million. Among this upper and upper-mid class people, I the first year, we expect to sell 45,000 units per year and the average price per unit would be BDT 100. That’s how we have calculated the sales for the year 2012. We assumed a 10% growth in sales in 2013, 15% growth in 2014, 18% growth in 2015 and a 20 % growth in the year 2016.

The variable expenses includes all the expense for supplies (fruits, vegetables, flowers, disposable glass, and straws), telephone bills, and power & electricity bills,. The fixed expense includes salaries, rent, Internet expense, and water bills. Interest on debt has been calculated at a rate of 15%.. As long as our venture would face losses, we would not have to pay any taxes. And when it is required, a 10 % corporate tax would be paid. The fixed costs for the first three years have been calculated as follows.

The prepaid rent shown in the plan is for 15 months,from October 2011 to December 2011. It would be considered as our current asset for the coming years. The advertisement cost would vary according to our needs. It we want to expose ourselves more, then the cost would get enhanced and vice versa.

The Exported and Imported equipments would be depreciated for 5 years according to straight line method which amounts to BDT 192,000. The Apparatus would be depreciated for 3 years and after 3 years, new apparatus would be purchased. The Interior designing would be depreciated for 5 years and the amount comes to BDT 200,000.We would pay back the loan within 4 years which comes to BDT 400,000 each year. Supplies would be purchased according to the needs of our venture.

Financial Structure:

                                                     Yummy! Juice Bar

Income Statement

For the Year Ended 2012

Yummy! Juice Bar

Balance Sheet

For the Year Ended 2012

                                                     Yummy! Juice Bar

Cash Flow Statement

For the Year Ended 2012

Yummy! Juice Bar

Income Statement

For the Year Ended 2013

Yummy! Juice Bar

Balance Sheet

For the Year Ended 2013

Yummy! Juice Bar

Cash Flow Statement

For the Year Ended 2013

                                                     Yummy! Juice Bar

Income Statement

For the Year Ended 2014

                                                      Yummy! Juice Bar

Balance Sheet

For the Year Ended 2014

Yummy! Juice Bar

Cash Flow Statement

For the Year Ended 2014

                                                     Yummy! Juice Bar

Income Statement

For the Year Ended 2015

                                                      Yummy! Juice Bar

Balance Sheet

For the Year Ended 2015

Yummy! Juice Bar

Cash Flow Statement

For the Year Ended 2015

 Yummy! Juice Bar

Income Statement

For the Year Ended 2016

Yummy! Juice Bar

Balance Sheet

For the Year Ended 2016

                                                    Yummy! Juice Bar

Cash Flow Statement

For the Year Ended 2016

To test the feasibility of our project we need to calculate the NPV and pay back period.

Net present value (NPV) = Present value of cash inflows – Initial investment.

                                         = 5844616 – 3882500

                                         = 1962116 BDT

Payback period

Year                            Annual cash in flows             Initial investment

  0                                                0                                     (3882500)

  1                                         (486000)                                (4368500)

  2                                          222000                                 (4146500)

  3                                          797283                                 (3349217)

  4                                        1491768                                 (1857449)

  5                                        3110355                                  1252906

Long term sustainability:

Our long term plan is to execute our vision and mission successfully. It is not an easy task. We have to be very careful in the initial stages of business. We have to work hard in the initial years to expand the business with name and fame. We have to be by the side of our mission, which is:

“To help the customers explore the different tastes of nature by striving to maintain quality, service, and uniqueness; at the same time fulfilling the nutritional requirements of the customers.”

In order to reach our vision, we have designed clear and precise goals and objectives, which are:

• Develop a market by providing our target segment the unexplored tastes of different fruits and vegetables.
• Provide quality service to our valued customers.
• Obtain 60% share of the total fresh juice industry of DhakaCity within the first three years.
• Increase the market of fresh juice by turning potential customers into actual customers.
• Create a brand and extend the market to Chittagong, Sylhet, Bogra and some selected cities by selling franchise within the first seven years.

Proper marketing strategy, management strategy, and financial plan can lead the way to the goals and objectives of ‘Yummy! Juice Bar.’ We have planed to have an advisor for the business in 2013 and turn the venture into a corporation by 2018. The reason behind it is that we are expecting the company to grow and keeping the management of a large company in our hands may not be a tentative idea.

We are also planning to enlarge the menu of ‘Yummy! Juice Bar’ by adding more appetite teasers. We are thinking to introduce juices extracted from flowers. This type of juice is offered in many first world countries but is quite expensive. Besides it also requires more hi-tech equipments, which are costly too. But technology is moving at a lightning space. So as soon as the technology of extracting juice from flowers get cheap, we will try to introduce it to the market of Dhaka through ‘Yummy! Juice Bar.’

We are also planning to set up juice corners beside the swimming pools of some reputed hotels, especially four and five star hotels. There are currently three of them: RadissonWaterGarden, Pan Pacific Sonargaon, and Sheraton. Hilton and some other hotels are on the way. So the idea seems to be a brilliant one. We will try to implement the idea after 2014, as more and more visitors will be coming to Bangladesh and will be residing in these hotels.

Conclusion: We believe that to sustain in long term in this business we have to focus on our customer’s demand and quality service as well. In initial stage we just need to rely more on our workforce to grab the attention of the customers. Each of our employee justified as our investment and we have to motivate them in proper way. We have a plan to increase the market of fresh juice by turning potential customers into actual customers. Create a brand and extend the market to Chittagong, Sylhet, Bogra and some selected cities by selling franchise within the first seven years.