TYPES OF ASSIGNMENT : BUSINESS PLAN
Subject Name
“Entrepreneurship Management”
Group Members
Manoj Gupta- 2020M0122
Rani Kumari-2020M0132
Mitali More - 2020M0145
Divyanshu pandey -2020M0154
Nikita Shined- 2020M0170
Swati Shinde -2020M0172
GROUP NO. : 17th
Submitted to
DR. RAJNI MATHUR
Bharati Vidyapeeth’s
Institute of Management Studies & Research
Navi Mumbai
Company name:- India’s natural milk
Product name- Indi-natural milk
Vision
To be a market leader in near future. Be the first choice of consumers.
Give our customers value for money. We want to become a potentials
player in this industry. This drives our philosophy and beliefs. To this
end, we are determined to break into the top tier distribution chain of
milk products.
Mission
Provide our customers with the cleanest and healthiest milk, for the
focus on nutrition stars from the animals themselves, thus leading to
more nutritional milk.
Objectives
Our objective is to provide fresh, pure and unadulterated milk and milk
product within a few hours of milking at the door step of the consumer.
Goals
In one year we want to deliver our milk to 3000-5000 customers.
In long term we want to establish our store everywhere and be
technologically advanced.
Target Market
A wide segment of society consumes milk products. To exploit this fact,
our milk distribution business will focus on families, men, women, and
children. We will make available to our market different variants of our
products. We produce milk containing fat content as well as those
stripped of it. This enables weight conscious people for instance to
enjoy our products.
Industry
Dairying is a vital part of the global food system, providing economic,
nutritional and social benefits to a large proportion of the world’s
population. Up to one billion people in the world earn their livelihood
through dairy farming.
India is the world’s largest milk producer and accounts for 17% of the
total milk production of the world. The Indian dairy sector is the largest
contributor to the agriculture Gross Domestic Product (GDP). In terms
of output, milk is now the single largest agricultural commodity in India.
Diary sector contributes 17% of the country’s total expenditure on
food. The milk production is growing at the rate of 7% by volume and
10% by value annually. Currently, around 46 per cent of the milk is
consumed in the form of liquid milk, 47 per cent of traditional dairy
products and 7per cent as Western dairy products.
The dairy industry in India is currently estimated to be about 130
million tons and is expected to grow at 4-5% per annul. The projected
value of the industry is about Rs 500,000 crore, which includes Rs
160,000 crore from liquid milk, Rs 45,000 crore from ghee, Rs 50,000
crore from Khoa / chana / paneer, Rs 10,000 crore from milk powder,
Rs 300 crore from table butter, Rs 8,000 crore from cheese / edible
casein and the balance from other products.
The government’s push for protection and welfare of cows through
various welfare schemes. With an initial corpus of INR 500 Cr, the
Indian government set up the so-called Kamdhenu Aayog in February
this year. It works towards being a growth engine for new dairy or cow
welfare businesses. As part of the initiative, it was announced that
startups focussed on commercialising cow products will receive 60% of
their initial investment as government funding.
Legal structure
We are a partnership firms. This business will be done among six
members.
The ownership will be decided in the ratio of 1:1:1:1:1:1.
Product & Services
This section expands on the basic information about your products and
services included in the Executive Summary and Company Description.
Here are some items to consider:
Our product or services
Our products consist primarily of natural fresh milk. These would be
distributed to end consumers early in the mornings. We have an
alternative low fat product for consumer who demand low fat dairy
product.
We will consider expanding our product line in the near future. This will
include the inclusion of other milk variants. The reason for this is to
capture a fair share of the dairy products market.
Special benefit
Consumption of pure milk will provide excellent source of calcium and
protein, and essential Vitamins like D and B12, low-fat milk in your daily
diet can help to fulfill customer’s daily calorie requirement without
adding fat to your diet.
The problem the product or service solves
The customer was getting poor quality milk. working to help improve
the quality of the milk produced, but some are looking at organic dairy
farming, improving animal and farmer welfare, and solving problems in
the business and management of dairy farms.
Production and delivery
We will procure milk from dairy farmers nearby Panvel. Dairy farm
contains gir- cows and Murrah -buffaloes.
Suppliers
Dairy Farm near by Panvel
Marketing and promotional strategy
SWOT ANALYSIS
Strength Weakness
Natural milk free of adulteration Less educated people is not able to
Quick and easy delivery using app find it easy
Addictive free A2 milk Available on higher rate
Keeping up with the trend Lack of awareness about natural
Farmer support milk and their effects
Offering low fat dairy product Perishable product
Opportunities Threats
Increase market share by expansion Competitors
in untapped market Growing price of milk and milk
Growing health awareness among product
consumers The yield of desi –cow and buffaloes
Favourable environment in India: is much lower than the other
The government is favorable towards New in milk delivery business so
dairy and agree-tech startups depend on dairy farmers for the milk
Target customers
Upper middle income group
Age 6 months-70 years
Health conscious people
Sports persons
Urban area
Key competitors
Country delight
Grofers
BB daily
Local shops Dairy- Shops in the area
Competitive advantages
A lot of milk distribution businesses have long been in business before
ours. In spite of this, we have identified their areas of weakness we
intend to build upon. This comes mainly in the form of using unskilled
labour to maximize profits.
Although an inexperienced workforce will learn on the job, they may
also be the reason the business collapses or performs poorly.
We are bringing in people with significant years of experience as well as
those with a track record of excellence.
These will bring their skills and experience to bear on the job. We also
have attractive remuneration as well as a work environment that
promotes productivity.
Positioning/Niche
We are using price- quality positioning strategy, the price-quality issue
is so important in some product categories that it is a positioning
strategy in itself. On the one hand, there are certain product categories
where a high price is automatically associated with quality, or where
low price is often considered to be synonymous with inferior quality.
We in Indi natural engage directly with the farmer to procure fresh
cow/buffalo milk, and deliver natural, fresh and unadulterated milk.
Natural because there is no addition of milk powder or preservatives,
and the milk reaches the consumer in 24-36 hours of milking.
Marketing and Promotional Strategy
To make real impact in dairy shop business, adopting productive
advertising strategies is a necessity. We are not leaving any stone
un-turned in achieving best results. Our marketing department
will use the social media, yellow pages radio and TV outlets in
getting the word out.
We will be using following promotional activities to introduce our
product in the market-
Pamphlet
Social media marketing
Campaign about product awareness
Digital marketing
Free sampling distribution
Initial budgeted exp: 50000
Pricing strategy
Value added pricing
We are going to adapt value added pricing strategy because our target
customer is upper middle income and middle income group . According
to our market research, we think that our customer's perception is that
they want to get high-quality and natural milk they won't bother if the
price is little higher.
Location or proposed location
We are going to set up our startups in Panvel.
Here we are aware of our target market and business
environment
Near by the dairy farm
Easy to supply
Easy to expand our business in near future.
Real state cost is cheaper as compare to the other locations.
Distribution channels
Manufacturer
Retailer
Consumers
12-month sales forecast
Sales Projections
We needed to know just how profitable we could be when we started.
Using available data on the rising demand for milk products, we have
projected a rise in sales as summarized by this chart;
First Financial Year- 480000 lakh
Startups expenditure
Startup Expenditure (Budget)
When it comes to starting a standard milk delivery business, we
are expected to spend the bulk of the startup capital on renting a
store/warehouse facility. Asides from that, we are also expected
to purchase distribution vans, get a large stock of milk and pay of
your employees and utility bills.
These are the key areas where we will spend our startup capital;
Marketing promotion expenses for the grand opening of
India’s natural milk in the amount of 50k-60k.
Insurance cost-20000 annual
Warehouse rent- 180000 annual
Other start-up expenses including stationery (5000) and
phone and utility deposits (15000).
Operational cost for the first 3 months (salaries of
employees, payments of bills) –90000
Equipment cost- 2lakh-3lakhs
The cost for the purchase of furniture and gadgets
(Computers, Printers, Telephone, tables and chairs) – 1-2
lakhs
The cost for the purchase of delivery vans – 180000
The cost of launching a Website – 25000-30000
Miscellaneous – 1lakhs
We would need an estimate of 10lakhs-15lakhs to
successfully set up our milk deliver services.
Generating Funds/Startup Capital for India’s natural Milk Delivery
Services.
India’s natural milk is a private business that is owned and
financed by partners and their families and banks. we do not
intend to welcome any external business partners which is why
we decided to restrict the sourcing of the startup capital to 3
major sources.
Generate part of the startup capital from personal savings
Source for soft loans from family members and partners as well as
apply for loan from the bank
Sustainability and Expansion Strategy
The future of a business lies in the number of loyal customers that
they have, the capacity and competence of their employees, their
investment strategy and the business structure. If all of these
factors are missing from a business, then it won’t be too long
before the business closes shop.
One of our major goals of starting India Natural Milk Delivery
Services, LLC is to build a business that will survive off its own cash
flow without injecting finance from external sources once the
business is officially running. We know that one of the ways of
gaining approval and winning customers over is to distribute our
milk and other dairy products a little bit cheaper than what is
obtainable in the market and we are prepared to survive on lower
profit margin for a while.
India Natural Milk Delivery Services, LLC will make sure that the
right foundation, structures and processes are put in place to
ensure that our staff welfare are well taken of. Our company’s
corporate culture is designed to drive our business to greater
heights and training and retraining of our workforce is at the top
burner.
We know that if that is put in place, we will be able to successfully
hire and retain the best hands we can get in the industry; they will
be more committed to help us build the business of our dreams.
