BIO- AGRO                           Prepared By                            ElegantP.K Subodani                    Reg No:P...
Table of Contents                                                     PageExecutive Summery                               ...
Executive summary  Our focus in this project is on Bio-Agro (Pvt) Limited which has experience inproducing Agri products f...
Task 1         4
1. Introduction to Bio-Agro (PVT) Ltd  One of the leading Agricultural Company in Sri Lanka, still stands alone over the p...
2. Extended Marketing Mix  2.1. Product  Brand Name           : Bio-Agro  Bio-Agro (Pvt) Ltd company’s current product mix...
2.3. Price  Price is a very important factor as well as a very sensitive issue. It is the only mix thatgenerates revenue t...
2.4. Promotion  The company has a very well planed advertising roster & it develops attractiveadvertisements mainly in new...
3. SWOT Analysis                   9
STRENGTHS                                   WEAKNESSES 30 years of experience                      Due to the Pvt ltd comp...
Conversion                    S                              W                    O                              TBio-agro...
loan accessibility and Interest rates       Changes in inflation rate purchasing power  4.3. Sociological       All demogr...
5.1. Segmentation  a) Demographical segmentation       i.      Gender    In our selected sample 60 are female & out of the...
In the case products’ availability, it is preferable for majority, 80%.         c). Behavioral Segmentation          i. Be...
5.2 Targeting  When organization go for targeting by laying on segmentation , they must pay attentionon followings to deci...
M1       M2   M3                                 P1          Here M1 is targeted                                 P2       ...
Customer retention due to value delivery through thoughtful and efficient           service.    b) Finding the right compe...
Task 2         18
6. New Strategic Business Unit   6.1. Introduction  An autonomous division or organizational units are small enough to be ...
is very easy to pronounce and easy to remember .and we have created an exclusive brandlogo, where at a glance you can iden...
All the fruit juices are priced at reasonable price ,we have marked a price of LKR40.00, on all the product there is infor...
Demand for fruits in the international market shows in the below 2 graphs(Source: Germany Trade and Invest, the Food and B...
8.1 Disadvantages of a Private Limited Company             Profit Sharing - : Evenly distributed among all shareholders.  ...
After considering above factors we propose it to incorporate under the Company act,no 7 of 2007 provides references on it....
Task 3         25
9. Perceptual Distortion   Lack of correspondence between the way a stimulus is commonly perceived and theway. An individu...
d) Considering irrelevant cues  There are still have set people have their fixed mind set does good what they believe in,t...
The educational institutes which is very much fruitful with the demand for this           product.           Advertise nea...
References  1. Slim text book  2. Web sites        o www.cicagri.com/        o http://www.definitions.net        o    http...
Annexure                     Survey   summery1) Gender   Male                40                         Male, 40   Female ...
4) Do you prefer fruit juice or fizzy drinks?    Fruit juice                 96    Fizzy drinks                45) What is...
8) What time of the day would like to have a fruit drink     Morning                         50      Noon                 ...
Incorporation of Public limited Company- company act, no 7 of 2007( edited one)Public limited Company is a company whose s...
(a) the name and number of the company       (b) the date of incorporated       (c) whether a limited/ unlimited or limite...
Food Act, No 26 1980 amended by act No 20 of 1991.Objective of this act is to regulate and control the manufacture, import...
The measures taken by the Ministry of Health regarding the GMOs and theproposed measures( if go for producing GM products)...
Upcoming SlideShare
Loading in …5
×

Bio agro

1,116 views

Published on

Published in: Education
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
1,116
On SlideShare
0
From Embeds
0
Number of Embeds
3
Actions
Shares
0
Downloads
20
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Bio agro

  1. 1. BIO- AGRO Prepared By ElegantP.K Subodani Reg No:PDM- D08- S026P.T.M Subasinsana Reg No:PDG- COL- 2011- DEC- 041U.A. Cader Reg. No: D111C01-1 Integrated Assignment – Certificate Level December 2011 Examination Certificate in Marketing Postgraduate Diploma in MarketingSRI LANKA INSTITUTE OF MARKETING 1
  2. 2. Table of Contents PageExecutive Summery 1Task 1 1. Introduction to Bio-Agro (Pvt) Ltd 3 2. Extended Market 4- 6 3. SWOT Analysis 7- 9 4. PESTEEL Analysis 9-10 5. Segmentation, Targeting, Positioning Analysis 10- 15Task2 6. New Strategic Business Unit 17- 19 7. Objects Clause / Ultra Vires 19- 20 8. Proposal to Convert To Public Ltd 20- 22Task 3 9. Perceptual Distortion 24- 26 10. Maintaining Standard 26References 27Annexure 28-34 2
  3. 3. Executive summary Our focus in this project is on Bio-Agro (Pvt) Limited which has experience inproducing Agri products for more than 30 years. In respect of the first task we carefullyidentified the extended marketing mix and also analyzed SWOT & PESTEEL factors byreferring to guidelines and real world agri product’s produce in order to determine thevalues that it could offer. Out of its product range we mainly focused on fruit juices in theSTP analysis. According to the secondary data study it showed that there is positivedemand on fruit productskeeping in line with market specialization, we selected leading schools & highereducation centers in the western province to provide mostly demanded fruit juices;Mango, Avocado, & Orange which is giving in to more competitive advantages. We usedthe positioning statement, “We, Bio-agro (Pvt) ltd are assuring to provide the superiorvalue to you by adopting Total Quality Management (TQM) practices on everyaspects of our product package” to give a better positioning. And on the other hand, wedeveloped a new strategic business unit - “MR JOOZ”, bottled fruit juices focusingevents on the market segment, Due to lot of limitations we propose Bio-Agro privatelimited to incorporate as a Public Limited Company, with the aid of E-marketing forthem to expand business activities . Perceptual distortion affects new business growth. It is very vital to keep up the samestandard of the company otherwise this will affect market share and will bring a badreputation of the company to the market. For further development we recommend Bio-Agro to emphasize its contribution onkeeping its consumers health well., Advertising with the help of the famous doctor,stressing on health benefits will make it possible to enter new market (middle age )andimprove point of sales and retain consumers in the targeted market. They can use newpositioning statement like “Health = Wealth = Bio-Agro Fruit Juices” & contributionon CSR activities like organize events (e.g. poster competitions) to school children toimprove brand loyalty 3
  4. 4. Task 1 4
  5. 5. 1. Introduction to Bio-Agro (PVT) Ltd One of the leading Agricultural Company in Sri Lanka, still stands alone over the pastthree decades.Bio-Agro fully owns more than 12,000 acres of Farm land, working veryclosely with rural farmers and produces a variety of Agriculture & Livestock productslike fresh fruit, vegetables, seeds, dairy product Agro chemicals, fertilizer and agriculturalmachineries under its own Brand name for the local market, Bio-Agro works with astrong commitment towards the farmers , and we make sure of their well being andhappiness in their families while improving the Economy of Sri Lanka. Bio-Agro Company produces their products more environment friendly manner with aminimum impact to the environment. They are imitating green environment concept. Bio-Agro Company is the first and only ISO 9001:2000 quality system certified company inSri Lanka and they have obtained SEED ISO 9001:2000 quality managementcertifications RICE ISO 22000(HACCP) Certification as well. The company applies the highest standard of excellence for their products. And alsothey are encouraging farmers to grow more and get more income as well as developingthe National Agriculture. 5
  6. 6. 2. Extended Marketing Mix 2.1. Product Brand Name : Bio-Agro Bio-Agro (Pvt) Ltd company’s current product mix consist of fresh fruit, vegetables,seeds, dairy products from its own well developed farms and Agro chemicals, fertilizersas well. All the products are wrapped in protected and standardized casings. Apart fromthe above products machineries are directly imported from Japan and deliver with a 5year warranty. In our journey we focus on their fruit juices. 2.2. Place The company has its own cultivated farms as big as 12,000 acres of land. Each productis segmented, and the distribution is spread widely across the country. It has Agri subdistribution units in Sri Lanka’s main regions such as Colombo, Kandy, Kurunegala, andGalle, Anuradhapura etc .The Company also owns 3 main warehouses based in Colombo,Kandy and Galle. And Farm lands at Kurunagala , Maho, Rratnapura, and KandyBio-Agro products are easily accessible through its informative and well developedwebpage for e-marketing www.bio-agro.lk. In the Transportation Bio Agro is taken careof effectively where refrigerators are attached to all of its trucks to safeguard and preservethe quality of the food. 6
  7. 7. 2.3. Price Price is a very important factor as well as a very sensitive issue. It is the only mix thatgenerates revenue to survive. Bio-agro has chosen cost plus pricing strategy for all of theproduct lines based on Seasonality of the product. This is found to be one of the majorproblems in this industry On machinery apart from the warranty, if the customer is willing we offer warrantyexpansion with an extra cost. Products displayed in the website would be priced at theprevailing market prices in Sri Lankan rupees. 7
  8. 8. 2.4. Promotion The company has a very well planed advertising roster & it develops attractiveadvertisements mainly in newspapers with well described benefits where the people canunderstand the value of the products. So far this form of media has been very effective.Apart from that, Bio –agro does; Viral marketing Poster campaigns E-mail blasters Search engine advertising Promotional and educational campaigns (mainly focused on schools) 2.5. Physical Evidence All of our distributional hubs have uniquely designed based on 2 colors, green andblue. It has a sitting area where people can relax and all the product material required isavailable, which enables to know our products better and gain knowledge. All theemployees on distributional outlets wear green t-shirts with the Bio-Agro logo and blackbottom as a uniform. 2.6. Process All the activities that occur have a structure .the company operates 24 / 7 operation onshift basis to keep up the quality of the product. Ware housing is operated on the FIFO(first in first out) and LIFO (last in first out) basis depending on the products. Bio-Argo’swebsite is fully secured with developed system security. 2.7. People Our employees are the backbone of the company and an asset to the company and allthe employees are well trained, committed, and specialized people. Bio Agro trains themonce in every 3 months .mainly focusing on customer service, which the companybelieves as the key to success. We retain all our valued customers through our thoughtfuland efficient service and it is one of our comparative advantages. 8
  9. 9. 3. SWOT Analysis 9
  10. 10. STRENGTHS WEAKNESSES 30 years of experience Due to the Pvt ltd company - Poor Well trained expert staff capital, Lack of funds, Expansion issues 12,000 acres of Large farms Lack of customer awareness on Widely spread Distributional channels E-marketing 24*7Operations & TQM practices so Specialization on one area for longer brand loyalty is there period - Job Dissatisfaction Large loyal customer base and Lack of HR practices-job rotation, affordable products rewarding, stress management, etc. Advance web site for E-marketing Industrial disputes due to lack of authority to making decisions.OPPORTUNITIES THREATS Government support on agricultural Supply depend on Weather condition products- tax reduction on importing Huge competition - increases in bargain Agri machineries power of suppliers and customers, new Economical and political stability entrance ,subsidiaries and initial rivals New distribution channels Government policy changes Market expansion with development of New Technological advancements tourism& global accessibility through Online payment frauds- credit cards E-marketing frauds high in SL Social media marketing- Face book Increases of demand in fresh fruit juices than soft drinks due to health issues 10
  11. 11. Conversion S W O TBio-agro should convert to public limited company, restructuring to flat hierarchy withmore HR practices. It should be early updating with technological advancement &develop secure shopping system to overcome payment issues in computerizedenvironment with the intention to differentiate.4. PESTEEL Analysis 4.1. Political Policies- agricultural, Tax & monetary, etc. Country stability Government subsidiaries- Fertilizer benefits ,SME development Government intervention on recovering market failures- public goods, infrastructure developments. 4.2. Economic Agricultural contribution on economic growth 11
  12. 12. loan accessibility and Interest rates Changes in inflation rate purchasing power 4.3. Sociological All demographic characteristics including social values & generation changes, life styles changes, & positive attitudes towards local products. 4.4. Technological E-business developments- online advertising, online purchasing, etc. New innovations Research and development in organization/ industry & in country 4.5. Ecological Green marketing 4.6. Ethical Advertising & customer ethics CSR activities 4.7. Legal Government legislation-, food and hygiene policy, foods transportation policies Authorities & Acts to protect consumer ,employees & social interests5. Segmentation, Targeting, Positioning Analysis According to primary data, Our company did consumer survey to collect primary data in related to the fruit juiceconsumption to determine the best target market and to set new strategic business unit intask 2. For this purpose we randomly selected 100 people especially in western provinceand collected feedback for quantitative & qualitative questions. 12
  13. 13. 5.1. Segmentation a) Demographical segmentation i. Gender In our selected sample 60 are female & out of them 59 like fruit juice and from 40 sample male, 37 like fruit juice, totally 96% demand on it. Out of fruit juice consumers, the most of demand (90%) is coming from young generation in both gender, between ages 15-35 & out of it 58% (52/90) is represented by very younger population between ages 15-25. With the increases of age their preference on fruits juices has declined, between ages 46-65 only 4%. ii. Income Most of middle lower level income earners like to consume fruit juice, monthly income in between LKR 20000-30000, 50%. Lower income groups also have more preference on it, below LKR 20000- 30%. Comparatively less preference is coming from middle-upper or above income earners. So we can assume there are good subsidiaries which have targeted those people. b) Psychographic Segmentation i. Interests Here out of different type of fruit juices we check for which have the most preference. Mango juice has highest demand on the sexes, total 23% & the second highest on Avocado, around 20%. Least interested in Papaw near 2% from total demand. ii. Values Comparatively more people know organic products are good for better life so they like to pay more on them than GM products, here 56%. So In the case of Agri juices they like to pay more & also 80% have identified they are affordable. People pay considerable attention on quality & all identify Agri juices are in good quality. 13
  14. 14. In the case products’ availability, it is preferable for majority, 80%. c). Behavioral Segmentation i. Benefits sought Most expected benefit from the product is vitamin especially C vitamin, 34%. Then demand on its taste & contribution on maintaining good health, 30% in both. ii. Brand loyalty Out of the sample near 98% people can differentiate Agri juice from others as a good brand. iii. Usage rate; Over the half of people consume it only once a week. Only 22% & 18% people consume correspond Everyday & Thrice a week iv. User status The time they buy, half of questionnaires have recorded as in the morning, only 14% in noon. The most selling place is grocery 48%; the second one is super markets 46%. According to Secondary data, Here we collected the evidence how the western world’s demand changes on fruitproducts & vegetables to effectively use for E-marketing & export purpose in future. Italso shows above two things have contributed the highest percentage in per person’smeal. Figure 1.0: Food Consumption of United Kingdom 14
  15. 15. 5.2 Targeting When organization go for targeting by laying on segmentation , they must pay attentionon followings to decide whether it is attractive & best fit with organizational objectives.a) Attractiveness & growth of the market- size of segment, growth rate, competition in the segment, existing brand loyalty, etc.b) Suitability of market segments to the firm- Whether the firm can offer superior value to customers & also for them in the targeted segment Impact of serving the segment on the firm’s image Strength of the distribution channelsAfter considering secondary data (refer Figure 1.0.) Comparing with the westerners Sri Lankans demand has increased rapidly, everyone isvery much health conscious and most of the parents; they add fruits to their Childs lunchpack. Most of our working crowed is too busy and they find it difficult to go to a fruitshop & get fruit. Because they know the importance of fruit they simply reach out to fruitjuice instead. So we satisfy that needs through providing fruit juices. As to our survey results, there is a comparatively good demand for fruit juices thanFizzy drink from the total product range of Bio-Agro (Pvt) Ltd Company. The highestpreference from very young between ages 15-25(52%), so we can more targets on themthan other ages. In the case of income wise preference analysis, middle lower levelincome earners (LKR 20000-30000) represent 50% & Lower income groups (below LKR20000) represent 30%, so we can focus them also. The mango fruit juice has moredemand near 23% & 20% for avocado & third highest demand on Orange with thepurpose of obtaining vitamins according to our survey. On our survey we observe majority can differentiate Agri fruit juice as good so there isbig share on brand loyalty. Most of them demand on it to obtain vitamin but in the caseof usage rate not satisfied, only 22% & 18% people consume correspond Everyday &Thrice a week but half of people consume it only once a week. After carefully analyzingabove we can provide products after having market specialization; markets arecategorized on ages. 15
  16. 16. M1 M2 M3 P1 Here M1 is targeted P2 P3M1- youngest consumers- leading schools & higher education centers at western provinceM2- immediate workers ages 25-35M3-other agesP1- Mango fruit juice small bottleP2- Avocado fruit juice small bottleP3- Orange fruit juice small bottle 5.3. Positioning After targeting we have to position our products on consumer’s mind well. So thepositioning strategy plays a vital role. It has three steps; a) Identify a set of possible competitive advantages. In this case we should develop a better positioning statement- We, Bio-agro (Pvt) ltdare assuring to provide the superior value to you by adopting Total QualityManagement (TQM) practices on every aspects of our product package. Hereorganization has promised to deliver quality services to the consumers, use it to gaincompetitive advantages over competitors important to keep those. It will increase thebrand loyalty. Possible competitive advantages according to the survey- Near 98% have identified Bio-agro as good brand so we can use this to differentiate our products & positively use to improve the demand in new SBU. There is highest demand from young 15-35, 90% demand from two sexes. People the most sought benefit is to obtain vitamins, 34% so can more emphasis it while obtaining certificates, through effective advertising. 16
  17. 17. Customer retention due to value delivery through thoughtful and efficient service. b) Finding the right competitive advantages There is increasing trend on consuming organic products, due to the good brand identification Bio-agro can grab better market share. On the survey 80% said our products are affordable so that can use to save higher demand which is coming from middle lower & lower level income earners. Younger age category from which comes the highest demand, so we can develop more features (e.g. fancy colours, designs, etc) on product & packaging, attractive advertisings with slogan & famous peoples to match with their demand People the most sought benefit is to obtain vitamins in every ages, 34% so can more emphasis it while obtaining certificates, through effective advertising. To grab the consumer attention on it is better to communicate the effectively anddeliver to the targeted position by keeping promises as well. c) Selecting on overall positioning strategy Bio-agro can position their own products with the concentration on the attractiveness of the selected target and its fitness with over all objectives. d) Differentiation from competitors BIO-agro (Pvt) ltd is differentiating from CIC, MD, etc. by offering unique bundle of benefits as follows; Quality products for affordable prices Respectable services for consumers Easy accessible & attractive web site to purchase online Adopting to TQM practices to deliver superior value throughout the process Give priority to keep promises that they gave 17
  18. 18. Task 2 18
  19. 19. 6. New Strategic Business Unit 6.1. Introduction An autonomous division or organizational units are small enough to be flexible andlarge and enough to exercise control over most of the factors affecting its long-termperformance. The new SBU will continue with our well developed and much owned freshfruit chain Bio-Agro fruit juices are made out of pure fruits which is grown on our own farmlands, they fresh out from the trees and all the fruits are freshly squeezed from the fruit byphysical processing they are prepared to the superior standards . No artificial colors, nopreservatives, no essence and no sugar have been added on to our fresh juices ,so that youcan get the best and real taste out of the fruitOnce the fruits are picked from our farms, they are sent for processing and the procedureof processing, filling and refrigeration will be finished in 48 hours. The maximumnutrition can be maintained in this way 6.2. New SBU to Targeted Market Selected target group is the youth, who has the highest preference on any kind of fruit juices. They are most occupy in leading schools & higher education centers so we determine to sell our products trough there canteens and to as a interdiction of this product we have posters and promotional material available on all of their premises . Out of type of fruit juices we selected above three why they have more demand on our questionnaire analysis. We specially set stalls to focus on special events; sport meets, cricket matches, festivals & special occasions, etc. In this SBU we normally distribute bottled fruit juices which could be consumed by one person only (250ml) with affordable prices. 6.3. Branding We have opened up a strategic business unit, for our retail business chain, primarilybased on selling fruit juice we have come up with new brand name “MR JOOZ” which 19
  20. 20. is very easy to pronounce and easy to remember .and we have created an exclusive brandlogo, where at a glance you can identify it’s a fruit juice.6.4 The Fruit Juice Brand Logo Figure 2.0: Brand LogoLogo will be displayed on the bottles as follows Figure 2.1: Brand Logo in bottlesFigure 2.2: Label on bottles 20
  21. 21. All the fruit juices are priced at reasonable price ,we have marked a price of LKR40.00, on all the product there is information about the nutrious level so that the customercan identify the importance of the fruit and the product lable contails a serial code whichwill be easy for the dealers who operates scan based tills6.5. Interlectual Property Act - Marks And Trade Names Brand logo has been protected by the law according to the section 101 of the actintroduce legal positions regarding protection of service marks or trade marks.thoseshould be identical & visible signs which distinguishes the goods or service of differententerpri.“MR JOOZ” constitutes marks also identical which consists of; arbitarary of fancifuldesignations,names,geographical names,slogans,labels,colours,shapes,etc.(sec 102(3))marks isn’t suitable to register if it consist exclusivly of a sign or indication,nodistinguishing from competiters,which offended religious or racial susceptibilities orcontrary to morality,misleading marks,represents individuals names or geographicalnames,etc.(sec 103)7. Objects Clause / Ultra Vires And to break away from the barriers which do not allow the business to be carried outoverseas bio Agro convert into public limited company: Demand towards natural fruits is growing in the European region and the western world, and Sri Lanka being a country with lots of natural resources would be able to meet that demand. Mostly all the developed countries are facing a huge demand for fruits and lack of supply has increased the price 21
  22. 22. Demand for fruits in the international market shows in the below 2 graphs(Source: Germany Trade and Invest, the Food and Beverage Industry in Germany, issue2011/2012, page 6)Figure 3.1 consumption of fruit and vegetables as per to private household This clearly shows that the consumption of fruits is increasing rapidly and there is hugedemand for fruits, The Company has already participated in preliminary discussions withpioneering international, Fruit producers for a strategic alliance as to grab the businessopportunities in the international Market. The shareholders have given their consent forall the above changes which were decided by the Board of Directors.8. Proposal to Convert To Public LtdAs a privet limited company they face following restrictions, Shareholders cannot sell or transfer their shares without offering them first to the other shareholders for purchase, Shareholders cannot offer their shares or debentures to the general public over a stock exchange, The number of shareholders cannot exceed a fixed figure (commonly 50). 22
  23. 23. 8.1 Disadvantages of a Private Limited Company Profit Sharing - : Evenly distributed among all shareholders. Taxes -: High tax No Trading -: Shares cannot trade to the public High cost Lack of Privacy Restrictions in trading overseas 8.2 Advantages of a Public Limited Company Access to capital Liquidity Access to international market Value of shares The opportunity to more easily make acquisitions To give a company a more prestigious profile Profit and tax advantages 8.3 Sources of FinancingBusiness ownership Sources of financingPrivate limited company Bank loan and with owners’ savings- Start up in business Venture capitalist- Expand factory Private share issue Grants Share capital.Public limited company Bank loans-expansion overseas Public share issue- business expansion Sale of assets Capital profits Reinvested profit Working capital Share capital Factoring Grants 23
  24. 24. After considering above factors we propose it to incorporate under the Company act,no 7 of 2007 provides references on it. (Refer appendix) 8.4 Special Rules And Regulations Consumer Affairs Authority Act, No 9 of 2003 Food Act, No 26 1980 amended by act No 20 of 1991. Sales of goods ordinence ,no 11 of1986(amended) Intellectual Property Act, No36 of 2003 Sri Lanka standards institution’s regulations The measures taken by the Ministry of Health regarding the GMOs and the (refer appendix) 24
  25. 25. Task 3 25
  26. 26. 9. Perceptual Distortion Lack of correspondence between the way a stimulus is commonly perceived and theway. An individual perceives it under given conditions. 9.1. Common Perceptual Distortion Methods a) Physical appearance Introducing “MR JOOZ” under bio agro will give very vast exposure to thecommunity, product relating towards the health is the main plus point. “MR JOOZ”, the brand name itself will promote the product ,we have made it veryeasy to recognize from other brands where it comes in a glass of bottle and in the shape ofcylinder ,all the fruits a very much easy to recognize ,it have been differentiated with thecolour ,and its price very much similar to all other fruit juice product ,we didn’t want tobring down the price because ,by starting with a low price it can go to a cheap category,so we are well known for our quality and standards we have kept the pricing equivalentto other brands. b) Halo Effects Bio- agro is already well developed brand over last 3 decades and it has a very goodbrand image among the community, as of now there is a huge customer base who is verymuch loyal towards our products due to quality and standards. By introducing a newproduct from bio agro, the brand name is almost having done half of the job. c) Stereotype Customers have established faith on our brand, wherever you see our brand image, it’sknown for quality, even if the product is little high in price the customer will go forquality rather than quantity or reduced price. 26
  27. 27. d) Considering irrelevant cues There are still have set people have their fixed mind set does good what they believe in,there are people who thinks that if you buy things from big mega stores or massive supermarket they get the best products and best quality products ,Yes it is true for some certainextent ,but not always ,all you get there is not the best to your health ,they sell all theavailable things in the world ,super markets motive is availability. If you get a product not much of the customers know the root of the company,everyone should been educated on this. 9.2. Perceptual Distortion Affect on Overall Image Of Bio – Agro If the bio-agro company produces low quality products customer loyalty will be reduced as well as it will effect to the company name. If the bio-agro company produces bottles which are not easy to hold sales of a products will decrease. If the Bio-agro company’s some brand gets the bad image that will affect for the overall business. Customer service also should be good. Otherwise company will fail to service to customer as they want. Some customers may reject their products. Poor customer distribution may affect to lose distribution channel. Good image of company may influence customers to buy more bio-agro products. Well packaged products may gain more customer attention about their products. Choosing relevant brand ambassador might increase sales.9.3. Use the Bio Agro Perception To Attract New Business Bio agro is well known and it has its own customer base, opening a new business withlarge customer base is the best strength we have.The new business can go with different sectors apart from the current sectors such as, We have very much focused on the schools and its entire canteen. Participate for most of events that schools going to be held. 27
  28. 28. The educational institutes which is very much fruitful with the demand for this product. Advertise near to children’s play grounds, Sport complexes, Gyms. Product can be distributed through more Supermarkets and Groceries. Can adapt relevant brand ambassador to promote their products. Bio agro have started educational campaigns in mostly all the town and mass attentionis given to schools on this sector we could easily get the attention ,and it is easy toeducate ,outcome is very much effective.10. Maintaining Standards It’s very much vital to keep up the same or higher standards, the brand image createdthroughout the years is an asset to the company, it is very challenging step into the newbusiness entering into the market. We cannot have any kind of discrepancy on any part of the process, no matter howmuch we work hard all these years if one of the products brings a bad name to the market,we can lose a huge market share.10.1. If These Standards Are Not Maintained First impression is gone Customer will hate the product Customer will never buy the product again He won’t recommend to anyone rather he would discriminate the product Word of mouth is the strong marketing tool ,if this can happen the brand name is gone Sales drop and huge lost in the market share Comparative advantage is lost Competitors will take advantage out of this This will affect the whole line up of the product list 28
  29. 29. References 1. Slim text book 2. Web sites o www.cicagri.com/ o http://www.definitions.net o http://www.scotland.gov.uk o http://www.austrade.gov.au o http://www.cic.lk/ o http://www.alibaba.com o http://www.gic.gov.lk o http://www.photius.com o http://nutritionmri.blogspot.com 29
  30. 30. Annexure Survey summery1) Gender Male 40 Male, 40 Female 60 Female, 602) Age Group 15-25 52 60 26-35 38 40 36-45 6 20 No of 0 Consumers 46-55 2 55-65 23) Monthly income 60 50 10000< 14 40 10000-20000 16 30 20 20000-30000 52 10 No of 0 Consumers 30000-40000 8 40000-50000 2 50000> 10 30
  31. 31. 4) Do you prefer fruit juice or fizzy drinks? Fruit juice 96 Fizzy drinks 45) What is your favorite fruit you would like have in form of juice ? Orange 17 No.of consumers Lime 9 30 20 Mango 24 10 Grape 8 0 avacado 20 pineapple 6 wood apple 14 Papaw 26) what makes you to buy a fruit juice Good source for fiber 0 A Good source of Vitamins 32 Low in Fat 4 They taste good alone 30 to maintain good health 30 other 47) Where do you buy your fruit juice from? Farms 2 Grocery 48 super markets 46 Other 4 31
  32. 32. 8) What time of the day would like to have a fruit drink Morning 50 Noon 36 Evening 14 9) Would you pay more for organic products yes 56 no 4410) How often you have fruit juice everyday 22 trice a week 18 twice a week 52 once a week 811) How do you grade Bio-Agro apart from other brands very good 48 good 50 poor 0 very poor 212) Is Bio-Agro product priced affordable yes 80 no 2013) Availability on Bio-Agro products very good 16 good 64 poor 16 very poor 414) Quality on Bio-Agro products very good 32 good 68 poor 0 very poor 0 32
  33. 33. Incorporation of Public limited Company- company act, no 7 of 2007( edited one)Public limited Company is a company whose securities are traded on a stock exchangeand can be bought and sold by anyone.In sri lanka , part one of campany act, no 7 of 2007 provides refferences to form as aPLC,and how should incorporate in its name & is registered from time to time. It shouldhas capacity to carry on or undertake any business or activity(e.g.- Bio- Agro (pvt) ltd -producing & selling fruit products), do any act or enter into any transaction. It subjects tothe provisions of any written law of Sri Lanka. (sec 2)Our selected company can incorporated either- Share issueing company with limited liability, Share issueing company with unlimited liability, Company limited by guaranteeIn first two cases any person /persons can apply to incorporate a company,by giving anprescribed application form with the sign of each initial shareholders, & followingdocuments :- a) A declaration stating(on knowledge, the name of the company is not identical/similar to that of an existing company) b) The articles of association of the company, if different from the articles set out in the First Schedule hereto, and signed by each of the initial shareholders ; c) Consent from each of the initial directors under section 203, to act as a director of the company d) Consent from the initial secretary under subsection (2) of section 221, to act as secretary of the company.(sec 3)No of shareholdersIn the case of at least two, and maximum unlimited.if one shareholder will be a Secretary to theTreasury. (sec4)Issue after all the requirements have been complied and has been incorporated on the datespecified in such certificate of incorporation ,by specifing followings; 33
  34. 34. (a) the name and number of the company (b) the date of incorporated (c) whether a limited/ unlimited or limited by guarantee (d) whether public/ private/ off-shore companywithin thirty working days of its incorporation should give public notice of itsincorporation.Incorparation offers the legal persanality to the company.Use of company name It shall ensure that its name and its company number If it is Unlisted public limited company ,end in the word “Limited” /“Ltd” and listed company, end in the words “Public Limited Company/ “PLC”. (sec6) The name should not be; name of any registered company ,contains the words “Chamber of Commerce”,(unless a licence granted under section 34 ), misleading the Registrar and it should not be cantain words of “President”, “Presidential” /“Municipal”, “incorporated” /“National”, “State” or “Sri Lanka” / “Co-operative” or “Society” ; &, etc execpt with the consent relevent authorities.(sec7) In our case when converting privet to public limited, it shall be deemed to have resolved to change its name in accordance with the provisions of subsection (1) of section 8, by omitting the word “(Private)”.(sec 11) and should ensure that its name & no are clearly stated when it is working with others.When the company is engaging with cantrcate there should be two directors, one or moreattorneys. 27. In the case of the privet limited companies.it prohibit to the company tooffer shares or issue securities to the public, and limited to the fifty shareholders, andnot including shareholders who are employees /former employees of the company. (Parttwo ot the act)Acts related to the companyConsumer Affairs Authority Act, No 9 of 2003Objective of the act is protection of consumers by the regulation on internal trade and topromote effective competition. The Consumer Affair Authority is the authority underthat which issues directions to manufacturers or traders to label the goods (food, drink,pharmaceuticals, fuel and all other merchandise) in respect ofprice marking, packaging,sale or manufacture of the goods. If our manufacturer is produsing fruit products withgenetic modifications it should be mentioned. 34
  35. 35. Food Act, No 26 1980 amended by act No 20 of 1991.Objective of this act is to regulate and control the manufacture, importation, sales anddistribution of food and the establishment of a Food Advisory Committee (FAC).manufacture, import, expose for sale, sell, store or distribute any food that is injurious tohealth or has any novel or deleterious substances or food that is unfit for humanconsumption are treated as offences unedr the Section 2 of this act.in section 3 discussissuess relating to the labeling, packaging, and the advertising. A minister is empoweredand Food Advisory Committee is there to governing purpose.Sales of goods ordinence ,no 11 of1986(amended)Objective is governing sales of goods in SL. Here goods are all movables other thanmoney and to cover under this followings should satisfy; Buyer has accept part of the goods sold Has paid price or part of thereof Document to prove the contractIntellectual Property Act, No36 of 2003The objective of this act is provides laws & regulations, procedures of registration,control and administration related to different types of intellectual property in Sri Lanka.Prodection of patent rights of new inventions(product/process/etc) discuss under the partfour of the act. There are recqusitions to get such rights; It is not practicable to define what is novel and thus an invention is deemed to be new if it is not anticipated by art. Involve an inventive step(can do with unique skills,resoures,etc the person has) Industrial application or the usefulness of the invention should be thereIn some cases eventhough above are satisfized cann’t to obtain due to biological process. TheNational Intellectual Property Office has power to decide whether to refuse a patent in order toprotect public order or morality.Sri Lanka standards institution’s regulationsProvides minimum standards to be maintain in specified comodities including fruit juiceswhen importing & manufacturing locally. 35
  36. 36. The measures taken by the Ministry of Health regarding the GMOs and theproposed measures( if go for producing GM products)This is relevent our organization go for GM products.There is special committee of the Ministry of Health on genetically Modified Foods in SriLanka. In 2001 made regulations to ban the import, manufacture for commercialpurposes, transport, storage, distribution, sale and offering for sale any raw or processedfood, food ingredient or food additive that has been subjected to any genetic modificationor that contains any such ingredients. It also says that anyone who imports the items listedin the schedule should get a certificate from an accredited laboratory or CompetentAuthority to show that do not contain any material or ingredient containing GMOs.If we want to obtain permits for the production and introduction of GMOs and productsshould include the following information1. Title of the project2. Program/Project/Study Leader(s)3. Name of Institution4. Cooperating Institution(s)5. Objectives of the Genetic modification6. Materials and Methods 36

×