Beca team, Global Startup Battle 2014 Sea buckthorn tea project 1. Coffee and brown tea uses are decreasing, but healthy tea use is increasing. (Mongolia, Japan) 2.It prevents from cardiovascular diseases, radio wave poisoning and even cancer 3.It contains several types of vitamins and minerals, therefore it is able to satisfy daily vitamin requirements. 4. We will provide user-friendly packaging, make it easy to use

1. SEA-BUCKTHORN LEAF TEA PROJECT
BUSINESS PROPOSAL

2. │2
1 CONTENT
Content
MARKET
Domestic market
Foreign market
MARKETING
 Introduction campaign
 Marketing strategy
FINANCE
 Investment
 Sales
 Profit
INTRODUCTION
 Project outcome
 Team
 Basis

3. │3
1 PROJECT INTRODUCTION BASIS
PROJECT NAME: SEA-BUCKTHORN LEAF TEA PROJECT
MISSION:
TO INTRODUCE A NATIONAL BRAND TO THE WORLD MARKET
Mongolian food industry volume: Import - 412 million dollars
Increase - 18%
Tea market volume: Total 5 million dollars
Domestic tea production increase: 26%
Project reach:
First phase: Mongolia and Japan
Second phase: World market

4. │4
1 PROJECT INTRODUCTION VALUE COMPARISON
BASIS:
1. Coffee and brown tea uses are decreasing, but healthy tea use is increasing. (Mongolia,
Japan)
2. It prevents from cardiovascular diseases, radio wave poisoning and even cancer
3. It contains several types of vitamins and minerals, therefore it is able to satisfy daily
vitamin requirements.
4. We will provide user-friendly packaging, make it easy to use

5. 1 PROJECT INTRODUCTION MANAGEMENT TEAM
Mission To introduce the most vitamin-rich product to the world market and
Line of activity
open a new potential export gateway for Mongolian economy
Management team
│5
Sea-buckthorn leaf tea manufacturing | Foreign trade
Foreign Trade
Specialist E. Yeruult
CEO
B. Bilegtsaikhan
Sales & Marketing
Manager G. Janchiv
Accountant A. Erdene
Export Manager A.
Lkhagvasuren
Food Technologist- 1,
Factory Worker-4

6. │6
1 PROJECT INTRODUCTION OUTCOME
PROJECT
OUTCOME
NEW PRODUCT
• To satisfy daily vitamin
requirements
• To introduce a new
production line to Mongolian
tea manufacturers, that will
be used to produce this type
tea
ECONOMY
• A new Mongolian brand will
emerge
• Export our product to the
world market
• 10+ permanent new jobs will
be created
SOCIAL IMPACT
• Increased healthy tea consumption
• Healthy way of living, beauty-benefits
HIGH PROFIT MARGIN
• Net capital: 329 million tugrik
• Foreign investment: 179 million tugrik
• Net profit in the first year is 90 million
tugrik.
• Investment payback period is 2 years.

7. │7
1 PROJECT INTRODUCTION SEA-BUCKTHORN GROWING LOCATION
Sea-buckthorn export and import countries
and E&I volume ($)
Export price (1 ton sea-buckthorn price)
2011 year
Hungary $ 6,772
New Zealand $ 4,383
Import price (1 ton sea-buckthorn price)
2011 year
Netherlands $ 3,158
Great Britain $ 2,138
France $ 2,059
World average $ 994
Export countries
2010 year 2011 year
Total 1,560,000 924,829
Vietnam 230,796 456,882
Spain 173,222 124,488
Netherlands 39,654 51,454
Thailand 276,648 292,005
Import countries
2010 year 2011 year
Total 674,680 1,876,318
China 334,206 351,796
Russia 224,957 249,952
Germany 115,516.80 128,352
Sea-buckthorn grows in several countries around the world, but the best one grows in Mongolia, plus
healthy tea consumption is increasing, which gives us an opportunity to export our products to the world
market.

8. │8
2 MARKET RESEARCH RAW MATERIAL RESEARCH
Raw material characteristics
A Japanese company conducted a research on
purity of sea-buckthorns, that grown in Russia,
Xinjiang and Uvs province of Mongolia, guess
what? Sea-buckthorn from Uvs province turned
out to be the best one, so one of the Japanese
companies now is importing sea-buckthorn
juice called “Yellow Doctor” from a Mongolian
company Jivertiin Orgil LLC.
Technological characteristics
Grown sea-buckthorn should be used for juice
production, because grown sea-buckthorn
contains a large amount of fruit flesh, but wild
sea-buckthorn, that contains a small amount
of flesh with high vitamin-content can be
used for tea production as a flavor.
Yellow Doctor juice, it is now being exported to
the Japanese market

9. │9
2 MARKET RESEARCH JAPANESE MARKET
# Total population 126.434.964 (10th)
1 GDP $4.770 trillion (2014)
2 GDP growth -1.8% (2014)
3 GDP per capita $37.540 (26th)
4 Yearly tea consumption 118000 tons
5 Yearly tea consumption per
person
2.5 liters
The Japanese agricultural sector accounts for about 1.4% of the total country's GDP.
Only 12% of Japan's land is suitable for cultivation.
Japan has a highly developed tea culture, which makes it a desirable location for tea
export.

10. │10
3 MARKETING PLAN PRODUCT
Sea-buckthorn leaf tea
(It is made of sea-buckthorn leaves)
Mineral &
Vitamin
Health benefits Target market
Sea-buckthorn
leaf
The leaf contains
a lot of healthy
stuffs like
vitamin A, E, B1,
B2, B6, C, also
omega 3 and 6
to shield us
against radiation
• Sea buckthorn leaves and flowers
are used for treating arthritis,
gastrointestinal ulcers, gout, and
skin rashes caused by infectious
diseases such as measles. A tea
containing sea buckthorn leaves is
used as a source of vitamins,
antioxidants, protein building
blocks (amino acids), fatty acids
and minerals; for improving blood
pressure and lowering cholesterol;
preventing and controlling blood
vessel diseases; and boosting
immunity.
• Users looking
for health drinks
• Women for
beauty purpose
• Office workers
• Japanese
consumers
• Excessive
computer users

11. │11
3 MARKETING PLAN SWOT ANALYSIS
ADVANTAGE
Danger
• Economic recession
• Purchasing power decline
• Foreign currency risk
• Competitors: There are
several imported products
Opportunity
• Government sponsored “Sea-Buckthorn
Program”
• Increasing eco-product use
• Japan-Mongolian Economic Partnership
Agreement
• Japanese people are very interested in
the sea-buckthorn leaf tea, because of its
high vitamin and mineral content
MARKET OPPORTUNITY
Advantage
• Highly nutritious eco-product
• Highly skilled team and
distinct marketing
• User-friendly packaging
Disadvantage
• 57% short of the net
investment, lacking current
asset

12. │12
3 MARKETING PLAN FACTORY LOCATION
PLAN DRAWING LOCATION

13. │13
3 MARKETING PLAN HUMAN RESOURCE
Board
（5）
CEO
Foreign Trade
Specialist
（1）
Export Manager
（1）
Accountant (1)
Sales Manager
（1）
TEAM MEMBER CREDENTIALS:
• Business Economics
• Marketing Management
• Foreign Relations
• Law & Economics
• Foreign Trade Management
• Factory Technology
Technologist
（1）
Factory Manager
(1)
Factory
Worker (3)

14. │14
4 FINANCIAL PLAN INVESTMENT
PLAN TUGRIK PERCENT
Net capital 84,636,514 24%
Operating cost 90,186,615 26%
Project execution 23,010,000 7%
Net loan financed investment 197,833,129 57%
Net self financed investment 150,000,000 Factory compound
Net investment 347,833,129 100%

15. │15
4 FINANCIAL PLAN INVESTMENT
STARTUP PHASE INVESMENT (MONGOLIAN TUGRIK)
Expenditure sheet Total price Note
PROJECT EXECUTION
Business travel 5,150,000
Business service 1,980,000
Equipment installation, operational training 15,880,000
CONSTANT OPERATION
Operating cost 58,286,615
PROCUREMENT
Basic equipment and machinery total price 72,686,514
All equipment 62,713,774
Transportation cost 5,972,740
From factory in China to
Ulaanbaatar
Factory address nameplate 4,000,000
Necessary tools and devices 11,950,000
84,636,514
TOTAL 197,833,129 Startup investment

16. │16
4 FINANCIAL PLAN INCOME STATEMENT
INCOME STATEMENT MNT – MONGOLIAN TUGRIK
2015 (MNT) 2016 (MNT) 2017 (MNT)
Income
Working period -
4 months 12 months 12 months
110,880,000 395,640,000 400,680,000
Total 110,880,000 395,640,000 400,680,000
Raw material cost 28,030,464 99,380,736 100,654,848
Salary 39,350,000 85,800,000 85,800,000
Individual income tax,
health insurance tax 4,328,500 4,544,925 4,772,171
Depreciation &
amortization cost 522,615 2,639,205 2,771,165
Electricity 1,200,000 1,260,000 1,323,000
Heating 500,000 1,500,000 1,575,000
Water supply 160,000 480,000 480,000
Internet 78,000 234,000 245,700
Marketing cost 1,250,000 15,000,000 15,000,000
Miscellaneous cost 5,000,000 5,000,000 5,000,000
Net operating cost 80,419,579 215,838,866 217,621,884
Profit before tax 30,460,421 179,801,134 183,058,116
Tax 3,046,042 39,564,000 40,068,000
Net profit after tax 27,414,379 140,237,134 142,990,116

17. Thank you for your attention!