Business-Proposal-Banana-Chips

UNIVERSITY OF SARGODHA
Department of Commerce
Entrepreneurship
Business Proposal of
BANANA CRAZEE
By

A Business Proposal by “Falcon Group” – Entrepreneurship
BANANA CRAZEE = A Product by “Frito’ Enterprisez” I
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Subject: Entrepreneurship
Course Instructor: Sir. Mohsin Altaf
Subject Credit Hours: 3 Hours
Following Students are the participants to prepare & finalize this
Feasibility Analysis…!
Ali Raza Sahni
B.Com (HONS)
VIth Semester / REGULAR

BANANA CRAZEE = A Product by “Frito’ Enterprisez” II
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BEST REGARDS
TO
OUR PARENTS
WHO LOVE, AFFECTION & PRAYERS HAVE BEEN A
SOURCE OF INSPIRATION AND ENCOURAGEMENT
FOR US…!

BANANA CRAZEE = A Product by “Frito’ Enterprisez” III
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Table of Contents
Section
No:
Section
Page
No:
01 Executive Summary 01
02 The Business 04
03 Management Team 08
04 Legal Company Structure 24
05 Ownership & Intellectual Property 26
06 Industry Analysis 29
07 Marketing Plan 33
08 Operational Plan 41
09 Financial Plan 46
10 Critical Risks Factors 54
11 Appendix 56

BANANA CRAZEE = A Product by “Frito’ Enterprisez” IV
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Acknowledgment
With the name of ALLAH who is the most beneficial & merciful and He
enable us to complete this business proposal to overcome our semester
requirement.
Then we thanks to our Entrepreneur Mr. Mohsin Altaf who guide us in
very beautiful & nice way. The supervision of Sir Mohsin has provided us a lot
of experience to get the view of actual market.
We are very thankful to Sir Mutee, Sir Haroon, Ma’m Imrana Asad, Sir
Mubashar & all other honorable teachers who share their experience &
knowledge with us to complete this project in very efficient manner.
In last, we are much respected for those students who provide us
encouragement to complete this business feasibility report.
Ali Raza Sahni
Group Incharge
May 27th
/ 2011

Section – 01: Executive Summary
BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 1 ~
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Section – 01:
Executive Summary
Our company “Frito‟ Enterprisez” will produce a unique and different product for the
market to change the trend of the people from vegetable snakes to fruit snakes. We will provide
specific unique products to our targeted customers for their maximum level of satisfaction. There is
no any firm who produce “Fruit Snacks” till now in our national market. We will offer these new
trended products at moderate prices for the customer benefit.
The Opportunity
Pakistani Market exports & demands fruits in huge quantity, but there is no any firm is
present at here for the manufacturing of „Fruit Snacks”. We will provide to him fruits in various
tastes, like apple, banana, orange, etc in roasted, snakes & chips form.
If we will proper launch this business, then we may be in condition to change the market
trends within the 10 years. If we will change the trend of the market then we will consider as
“Trend – Maker” for the Snacks Industry.
Competitive Advantage
There is huge gap is present in the market for the fruit snacks. We have no any direct
competitor at local & national competition till now. Our product will be unique in the market; we
will easily achieve economies of scale with the next 12 years who provide us least cost with
maximum profit. Following are our major indirect competitors in the snacks industry but all of them
producing vegetable snakes as:
 Lays
 Golden Chips
 Smiths
 Kolson
 Super Crisps
 Krincles
 Pringles

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All of these firms are the heavy weights of the market and have the great influence on the
behavior of the market. All of these are our indirect or may be future competitor for us. Most of
these firms have a great market share, but not like Lays who is the leader in the Snacks Industry.
Target Market
If we offer this product in the market then our basic target market will be youngsters of
colleges & universities who enjoy these kinds of product. When we will get a successful response
then we launch this product of specific city where college or university exists. In our first attempt,
we will target three cities within the 7 months to the first launching.
In general sense, we have comprehensive market because every aged person has a
reasonable demand of the chips. If we will target maximum colleges & universities of the Punjab
within our first three years of launching then we will achieve a reasonable & stable place in the
Snacks Market.
Management Team
For the managerial affairs of Frito‟ Enterprisez, we have to choose best one management
personalities from the market who will supervise us. For the effective management, we have
following managerial posts as:
 CEO/Chairman
 Board of Directors
 Finance Manager
 Accountant
 Marketing Manager
 Production Manager
 Quality Inspector
 Coordinator
 HR Manager
 Asst. Cost Manager
 Other Staff Members

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This will be our best try to choose well – experienced & well – qualified management team
in the larger interest of the business success. But our major focus is finance & marketing heads that
provide value & brand equity in the market. We will provide sufficient benefits to our employees
because we believe that firm‟s employees are our assets.
Financial Projections
According to the Snacks Industry, we are unable to demand a huge capital from the market.
But for the proper launching of business, the total required capital of business is Rs. 100 Millions.
According to our analysis we have to require 7 investors which will act as the owner of the “Frito‟
Enterprisez”. For the operations of firm, we will demand Rs. 50 Million as initial investment to
startup the business and Rs. 25 Million in IInd year & also Rs. 25 Million in IIIrd year.
For the return on investment, we plan a strategy as ROI Policy; we will provide maximum
return to our investor. We will distribute 3% to 14% return on the net profit to our 7 investors who
will act as the owner of our business. We will distribute return on investment in 2nd
year to the
establishment of business. According to the ROI Policy, we will divide “Net Profit” of the firm
after taxation & other expenses among the whole investors.
After the achievement of the breakeven within 2.64 years (32 months), we will make huge
profit for our investors. The profit generation in this business is not difficult due to less cost on all
inputs of the production, especially raw material. We have 45% ratio of Gross Profit on the sale of
each unit with respect to their Sales Price.
Exit Strategy
Success is not always the fate of any business. For the exit strategy to our stakeholders, we
will apply following strategies as:
 Sale of Business to any Heavy Weight of Snacks Industry with Product Formula
 To merge “Frito‟ Enterprisez” with any other Industry related Firm
 Bank – Raptly Slip to our all stakeholders

Section – 02: The Business (Description)
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Section – 02:
The Business - Description
Our Opportunity
Business is the name of profit earning through legal activities. The most important
parameter towards profit making is the presence of an opportunity gap in the market because
homogenous products have a great sense of competition as compared to heterogeneous.
For the Fruit Snakes, we have a great opportunity in the national market because there is no
any producer is present here who provide this trend to the people & earn sufficient revenue. The
international brand “Pringles” is present who provide caned banana chips at the limited level with
very high price.
Description of Business
We “Frito‟ Enterprisez” will facilitate to people by fruit
snakes in packets at the reasonable prices and obtain sufficient
value from them. Now, people enjoy their life with potato
chips, snakes, popcorns, chocolates, etc. but we will provide them
a concept of “Fruit Chips” or “Fruit Snakes” which will be better for
their health.
Our initial product will be “Banana Crazee – A Taste of
Nature” (banana chips) in the market to get an overall response of people towards Fruit Snakes.
There is no any direct competitor is present in the market but a lot of indirect competitors are also
present who are the price makers & trend changers.
The first mover advantage in the Snakes Industry goes to “Super Crisp” who was the king of
this industry for 25 – 30 years. Then 10 years ago, “Lays – A Product of Pepsi Co.” entered into the
market and replaced the “Super Crisp” into “Lays – French Cheese”. Due to huge network,
extensive promotional activities & international brand equity Super Crisp lost their market share to
Lays.

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We have a great threat of take over & market crash from Lays as multinational brand. If the
Lays want to tackle our product then 2 years time period minimum will be required due to their
policy matters. For any multinational brand, it is not easy to launch a new product in the specific
market within the few days or months because their strategies & policies recommended by their
higher authorities which is time consuming task.
Pakistan is a consumer market and our consumer is price conscious not quality or product
conscious. Frito‟ Enterprisez will provide our products at reasonable prices to capture the sufficient
value from our customers. We will consider as “First Mover Advantage” in the snakes industry
relevant to fruit snakes. There are so many broad chances towards the success of this product.
Vision Statement
“We want to satisfy our customers by the taste of nature”
Mission Statement
“We want to offer our dedicated and innovated products to customers for their
maximum satisfaction as our ultimate goal. We want the growth along with our customers,
staff, employees, suppliers and all other business associates by greater value”
Major Objectives
For the 15 – 20 years in the future, our firm “Frito‟ Enterprisez” will achieve following
major objectives from the target market as:
 To known their brand as “Frito‟ Enterprisez” within the next 6 years at national level
 To provide a quality product to consumer at reasonable price
 To loyal the customers towards brand & capture brand equity from them
 To consider that employees are our assets who provide us their services in honest way
 To change the mind of people from vegetable snakes towards fruity snakes in the snakes
industry with in next 10 years
 To attain at least 30% market share of snakes industry within the next 10 years
 To compete in the market on quality behaviors, not on price strategies

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 To earn minimum 30% profit on each unit from the day first
 To establish their own national distribution network within next 12 – 15 years
 To nationalize our firm at least 20 years to their existence
 To maintain the harmonic relationships with their suppliers for the quality concerns
 To provide a sufficient return to investor from our net profit
Competitive Advantage
We are offering a unique product to market with good quality,
excellent taste & at reasonable price which will attract to consumer.
We are fully free in this segment of the snakes industry till next two
years minimum. And two years is enough time to grasp the huge
market value. The major threat to our product is take over from
Lays, but it will be not easy for Lays. Because multinational
brands never want to lose their reputation in the host market through
negative propaganda towards other home product.
In the case of Lays threat, we have national slogan of “Be Pakistani, Buy Pakistani”, which
will provide us way to capture the market share. And, we are offering “Halaal Food” to market
under the Islamic Values. It is in our common observation that some years before, Lays had a blame
of “Pig Fatty Oil” in their chips, and Lays faced huge financial crises due to this unethical activity
in the Pakistan‟s Market. These will be ours strong bases to walk in the snakes industry.
Another competition strategy is also present that we will merge themselves into Super
Crisps. This merger will provide us low fixed cost, national distribution network, brand name of
Super Crisp, etc. due to this merger Super Crisp may will be again attain the huge market share like
in past.

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Current Status
Now, if we launch our product to 3 – 4 major cities of Pakistan which provide us the actual
behavior of our product towards people. Due to this limited launching strategy, we will prevent
ourselves from the huge loss which may occur in big launching. As the first mover in the fruity
snakes industry, may we will face various initial costs but all of these costs will be cover within
very small next period because our profitability on each unit is so much for the investor.
For the marketing concerns with respect to our competitors, we will promote our brand and
products by various promotional activities and extra benefits to distributors, retailers and also to
ultimate consumers. But it will be necessary for us to establish strong & solid distribution network
for the consumption of our product on each & every level.

Section – 03: Management Team
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Section – 03:
Management Team
For any organization, management is a first and last pyramid to handle the various
operations & matters of the organization. We, Frito‟ Enterprisez is familiar with this important
aspect of the business. For the managerial affairs we will choose best one management personalities
from the market who will supervise to our business. The well – trained & well – qualified staff of
the organization is the responsible for their success. On the other hand, loser‟s persons of the
management staff may responsible for the failure of the organization. For the effective
management, we have following managerial posts as:
 CEO/Chairman
 Board of Directors
 Finance Manager
 Accountant
 Marketing Manager
 Production Manager
 Quality Inspector
 Coordinator
 HR Manager
 Asst. Cost Manager
 Salesperson
 Other Staff Members

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CEO/Chairman
The CEO/Chairman of the organization is the top executive body who is the legal head of
the business. The CEO is the most powerful person in the organization by their powers &
authorities.
Eligibility Criteria:
We have to require:
 A Male or Female, everyone is eligible without any kind of discrimination
 Age of candidate must be minimum 37 years
 A person with experience of 5 – 7 years in the Public Listed Company as Executive
Head
 His qualification should be minimum M. Phil or PhD in the field of Economics,
Business & Commerce, Management, Marketing, & Finance
 He should have NOC (Non – Objection Certificate) from previous organization where
he get experiences
 He will be a appointed as CEO/Chairman by mutual concern of all members to board of
director
 He will be work with us on skill – based partnership
 His rate of return will be 10% when the firm will achieve their breakeven stage
 From the day one to till breakeven achievement, his allowance will be Rs. 15,000
monthly
Responsibilities:
He will be responsible in organization to:
 He will be the official head of the whole organization
 Will be responsible for each & every affair of the business
 Have a control on all employees of the business except all board of directors but not
Coordinator included in it, he will be under the order of CEO/Chairmen
 He will entertain with full protocol from the entire workforce of the organization

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Board of Directors
There are total five members as Executive Bodies of the “Frito‟ Enterprisez” which called
Board of Directors and these members will consists of:
 CEO/Chairman
 One Investor
 One Banker
 Coordinator
 Advisor
All of the members to Board of Directors will entertain with specific amount from firm in
the sense of “Allowance” for their personal involvement in the firm‟s affairs.
 CEO/Chairman: The head of the whole organization and work on skill – based partnership
from the business as neutral body for the organization. He will be the official head of the
whole organization & responsible for each & every activity of the firm.
 Investor: A person except Banker who has at least 22% to the total investment will be
eligible for the member to board of directors.
 Banker: A representative of Bank not Investor who has at least 12% to the total investment
will be eligible for the member to board of directors. This person will be act as the
representative of the specific bank.
 Coordinator: The inside person from the organization who will be responsible for the
instructions & information‟s distribution towards the entire workforce of the organization.
 Advisor: A person rather than investor or banker who has technical, legal & analytical skills
towards the business affairs with at least 3% to the total investment. This person will be act
as advisor for our organization in every activity of the business.

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Finance Manager
The post of “Finance Manager: or “Chief Financial Officer (CFO)” is the most important in
any organization because finance is the blood of the business and without it business never exists.
We have to require:
 A person with experience of 3 – 5 years in the Public Listed Company
 His qualification should be minimum M.Com or MBA (Finance)
 His subject of specialization must be Finance with at least 80% marks
 He should have strong grip on Finance & Accounting principles
he get experiences
 Various kinds of appreciation certificates will also be preferable towards the job
 The basic salary for this post will be Rs. 35,000
Responsibilities:
 Manage all the financial matters
 Act as the head of Finance Department
 Provide us projected & forecasted data for future concerns
 Provide us helps in investment plans
 Tackle the investors & bankers
 Have no any concern with other department
 Provide briefing to board of directors regarding the financial position of the firm
 Directly work under the instructions of coordinator

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Accountant
The “Accountant” or “Accounts Manager” is a person in the business who maintains all the
accounts (real & nominal) with the specific evidences as mentioned in the laws & regulations.
We have to require:
 A person with no experience or fresh candidate is eligible
 His qualification should be minimum 16 years in the field of commerce
 His subject of specialization must be Accounting (not Finance) with at least 75% marks
 He should have grip of handling the Accounting matters
 He should have NOC (Non – Objection Certificate)
o For Experienced Candidate – from the organization where he get experiences
o For Fresh candidate – from their educational institute
 He should have grip to utilize Quick Book, Peach Tree, etc
Responsibilities:
 Manage all the accounts of the whole business which will specified in Frito‟z Newsletter
( a monthly published document by firm)
 Act as the head of Accounts Department
 Maintain all the records with specific evidence
 Petty Cash Affairs will be present under this post

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Marketing Manager
The “Marketing Manager” of “Marketer” is another most important post in the organization
to plan & implement various strategies according to the market situation.
We have to require:
 A Male with the age of minimum 35 years
 A person with the minimum experience of 5 – 7 years in Marketing Department of any
prominent firm of Food Industry
 He should have repute certification from three marketing weights
 His qualification should be at least MBA (Marketing) with at least 65% marks
 He should have strong grip on marketing & sales allocation
he get experiences
 His commission of Rs. 0.25 on the sale of each unit will also be allocated
Responsibilities:
 Act as the head of Marketing Department
 Supervise to their salesman force & also responsible for their behavior
 Fully free & isolate in making & implementing the marketing strategies under the
specific instructions from the board of directors & coordinator
 Manage & achieve various sales target for profit generation towards the firm
 The repeat sales or change in trends (fad) marketing behavior also under their shadow
 Have no any concern with other department except Production at limited extent
 Provide briefing to board of directors regarding the sales pattern in the market

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Production Manager
The “Production Manager” or “Manufacturing Supervisor” is a person in the business who
responsible for all the manufacturing or production concerns of the basic product or service. He
manage whole assembly line for efficient production process.
We have to require:
 His qualification should be minimum 14 years in the field of commerce & business
 He should have grip to handle various production affairs
 For Experienced Candidate – from the organization where he get experiences
 For Fresh candidate – from their educational institute
 He should have ability to tackle the human resource
Responsibilities:
 Act as the head of Production Department also Production Assembly Line
 Maintain all the records of raw material & finish goods
 Responsible for the labor affairs except their salaries/wages
 Responsible for the raw material usage, finish stock warehousing & wastage during the
production process

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Quality Inspector
The “Quality Incharge” or “Quality Inspector” is the most important person in the
production process to verify the quality of the product or their design. We are quality conscious for
the customer satisfaction that why we have well – qualified quality inspector for the betterment of
our product.
We have to require:
 A person with minimum experience of 2 – 3 years in any quality conscious food
industry
 His qualification should be minimum MBA or M.Com with 70% marks at all
 His subject of specialization must be TQM or OPM with at least 80% marks
 He should have NOC (Non – Objection Certificate) form previous organization where
he get experiences
 He should have grip to utilize various quality techniques
Responsibilities:
 Act as the head of Quality Department
 Inspects the quality pattern during the production process
 Have no any concern with other department except Production will full extent
 Choose suppliers under the specific instruction from top level management & also
responsible for the behavior of these suppliers
 Responsible for any kind of defect in the product regarding the quality concern

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Coordinator
The “Coordinator” or “Vice Chairman” of the organization is the executive body who
controls all the affairs of the business & provides coordination among the various departments &
staff members in the larger interest of the firm.
We have to require:
 A person with experience of 4 – 5 years in the Public Listed Organization as the
coordinator or acting coordinator
 His qualification should be minimum MBA (HR), not any other is required
he get experiences
 His behavior towards the organization should be multi – dimensional
 He will be a appointed as Coordinator by mutual concern of all members to board of
director
 He will be work with us on skill – based partnership
monthly
Responsibilities:
 Responsible to monitor all the internal & external affairs of the organization
 His behavior towards departments should be linen ant & positive

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 To coordinate all the affairs of the business to each & every level with specific
limitations
 Act as a “Supervisor” towards all the departments
 Responsible to provide briefing to board of directors regarding the overall situation of
the business
 Responsible to convey each & every information to their related person in written way
 Directly work under the instructions of Chairman & Board of Directors
Legal Advisor
The “Legal Advisor” or “Attorney” of the business should be well – experienced & well –
capable person who tackle all the legal procedures which are mention by Govt. of Pakistan in their
various laws regarding the corporations & their affairs.
We have to require:
 A person with experience of 3 – 5 years in the any law firm
 His qualification should be minimum L.L.B. (HONS), not any other is required
he get experiences
 He should have technical skills to manage the legal proceedings
 He will be a appointed as Legal Advisor by mutual concern of all members to board of
director
 He will invest in our business minimum 3% of the total investment
 He will be work with us on skill – based partnership as well as invest – based
partnership
monthly

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Responsibilities:
 Responsible to monitor all internal & external legal affairs of the organization
 He will hire the law firm to help us to fulfilling various formalities of the business
organization
 He will be responsible to convey each & every legal or lawful information to their
related person in written way
 Directly work under the instructions of Chairman & Board of Directors
HR Manager
The “HR Manager” or “Human Resource Supervisor” is a person who will manage bottom
level management in all departments of the firm. For Example: Engineering Affairs, Warehousing,
Safe & Secure Storage of Stock, Production Line Errors, etc.
We have to require:
 A person with experience of 5 – 7 years in any organization
 His qualification should be minimum Intermediate with 75% marks
he get experiences
 His ability of handle small matters of the business must be sharp & confidential
 Person will be selected by the mutual concentration of Heads & Board of Directors

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Responsibilities:
 Responsible to monitor & handle to tackle all the minor problems in the organization
 He should maintain all the team work to work out in the organization
 Directly work under the instructions of Coordinator & Board of Directors
 He should have access to each & every department according to their work
 Will be the supervisor of the bottom level management
Asst. Cost Manager
The “Assistant Cost Manager” or “Finance Coordinator” is a person in our organization who
will personally assist the Finance & Accounts Department.
We have to require:
 His qualification should be minimum 16 years in the field of commerce
 His subject of specialization must be Accounting or Finance with at least 60% marks
 He should have grip of handling the Accounting & Financial Matters
 For Experienced Candidate – from the organization where he get
experiences
 For Fresh candidate – from their educational institute
 He should have grip to utilize Quick Book, Peach Tree, etc
 Person will be selected by the mutual concentration of Heads & Board of Directors

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Responsibilities:
 Manage & Assist to Finance & Accounts Departments
 Have concerns with all other department
 Responsible to lose down the per unit cost with maximize profit for business
Salesperson
The asset of the organization is “Salesperson” or “Sales Promoter” who sale down the
product or service of the business in the market. This is most important person in the organization
who maintains the goodwill of organization in the market.
We have to require:
 A person with the minimum experience of 3 – 5 years in Market of the Food Industry
 He should have repute certification from one marketing weight
 His qualification should be at least 14 years of commerce or business education
 His subject of specialization must be Marketing with at least 75% marks
 He should have strong grip on marketing & sales promotion activities
he get experiences
 He should be the resident of the specific area where our product will be launch
 His commission of Rs. 0.25 on the sale of each unit will also be allocated

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Responsibilities:
 He should be responsible for the allocated tasks by the Marketing Department
 He must be responsible for the goodwill of the firm in the market
 He will directly work under the instructions of Marketing Manager
 He have no any special permission to work with another organization of any kind
 He should be the trail able for any fraudulent behavior in the market on the behalf of
organization
Key Professional Service Providers
We will allocate various firms & consultants to manage & monitor our business activities
with the concern of specific fees.
 Business Consultant Agency: Any firm who will provide help to us in every activity of the
business according to our requirement. We will pay him on monthly basis and get their
suggestions & consultancy for the betterment of our business.
 Audit Firm: Any firm who will conduct the audit on bi–annually basis and submit their
report to board of director as twice time in the year. This audit will be helpful for the
taxation department formalities & also provide an internal picture of our business regarding
the utilization of resources.
 Law Firm: Any firm who act as “Attorney” for our business in each & every aspect in the
legal matters. All the legal procedures of the business will be the responsibility of this firm.
Whenever, our organization will face any kind of legal problem from any side this firm will
tackle this case.
Rules & Regulation for the Organization Structure
 The official head of the organization will be CEO/Chairman
 All the members of board of directors will under the CEO/Chairman
 Any decision by board of directors will be base on majority except CEO/Chairman‟s vote
 Any majority decision by board of directors must have one vote by investor or banker

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 One Member  One Vote, policy will be implemented in the whole organization at each &
every level
 CEO have special authority to remove any head & other staff member anytime without any
mutual concentration with any other official on the behalf of some reason
 For the meeting to board of directors, minimum three members should be present except
CEO/Chairman
 For the meeting to heads of departments, minimum three members should be present except
Coordinator
 The HR Manager will be appointed by the mutual concentration of all heads & board of
directors
 The Business Consultant Agency, Law Firm & Audit Firm will be appointed by the majority
decision of the board of directors
 The returns of investors & bankers will be determine by the Finance Department with the
concern of CEO/Chairman & Coordinator
 The Coordinator will be the supervisor of all the departments & all heads will be under their
instructions directly or indirectly
 All of the orders & information in the organization will circulate in the written &
confidential way for the record of each & every activity
 The HR Manager & Production Manager will be responsible for the appointment of labor &
skills men for the manufacturing process
 The bottom level staff of the entire organization will be under the shadow of HR Manager
 Any kind of changes in organizational structure will be implemented by all the members to
board of directors & heads of departments
 Any kind of special authorities & powers will be delegated to any staff member will be valid
by the instructions of board of directors
 Any increment in the salaries & wages for the entire organization will be passed by the
board of directors & Finance Manager
 Each & every person will be responsible towards their duties within the organization
without any kind of relaxation & nepotism

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Organizational Structure
Frito’ Enterprisez – Organizational Structure
CEO / Chairman
Investor Banker CoordinatorAdvisor
Business Consultant
HR Manager
Law Firm
Audit Firm
Finance
Manager
Marketing
Manager
Production
Manager
Accountant Quality Inspector
Asst. Cost
Manager
Complainant
Officer
Salesperson
Labor +
Skillman

Section – 04: Legal Company Structure
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Section – 04:
Legal Company Structure
Our Firm – Frito’ Enterprisez
Our firm “Frito‟ Enterprisez” will be a “Private Limited Company” under the Companies
Ordinance, 1984. According to the law, a private limited company is an association of at least 2 but
may not exceed 50 members. This form of firm is restricted from the right of its members to
transfer their invested part within the company. It also prohibits to any invitation to the public to
subscribe their shares or debentures. It will be registered under the Companies Ordinance, 1984 and
corporate taxation law. All the members will entertain with the limited liability.
All the members especially investor & bankers join this organization under the Partnership
Act, 1932. Under this law, partnership is a voluntary association of two or more persons, who
contribute their money, property, time, skills knowledge, energy, ability & experience to carry on
business for the profit/loss sharing among each other. The partnership itself have no any legal
separate entity, all of members will partners under the head of some specific voluntary kind of firm,
which is registered by any law.
Legal Status of Frito’ Enterprisez
The legal structure of our firm “Frito‟ Enterprisez” will be a company as private business of
various investors, bankers & skilled based persons who invested their money, time, experience &
abilities on risk basis & demand high rate of returns against them. The investor with 35% to the
total investment & banker with 25% of the total investment will be the members to board of
directors without any kind of eligibility criteria. And, CEO/Chairman, Coordinator & Legal
Advisor will invest their skills & experiences with the specific selection criteria. Our firm has
skilled based investment & money investment portfolio at the time with the different rate of returns
on the total invested money & abilities.

Section – 04: Legal Company Structure
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In our partnership relationship, we have a lot of partnership deeds. All the partnership deeds
(agreements) should be disclosed in the first or statutory meeting of the board of directors. The
partnership deeds regarding CEO/Chairman, Coordinator & Legal Advisor will be discussed in this
meeting.
At the 5th
of each month, firm will issue a special kind of document “Frito‟z Newsletter” – a
letter which will describes the firm news, policies, rules, regulations, strategies, plans, goals,
objectives & achievements of the whole organization. The duties & responsibilities of each staff
member will be mention in it which may increase or decrease on monthly basis. The confidential
matters will never to be disclosing in this document. This is a public document for our inner
structure of Frito‟ Enterprisez.
Frito’ Enterprisez
Head Office Address:
Frito‟ Enterprisez,
73 / A, Century Plaza,
Near Centre Point (Mini Golf),
Lahore, Punjab – 35000
Assembly Line:
Frito‟ Production Unit,
Near Falcon Motor,
Lahore Road, Sargodha

Section – 05: Ownership & Intellectual Property
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Section – 05:
Ownership / Intellectual Property
Total Capital Requirement
Our firm “Frito‟ Enterprisez” will be work under the status of “Private Limited Company”
who has various partners which may invest their money and skills. The ownership title of this
organization will be goes to various personalities who invested their money & experiences with us.
But the general partners & owner of our business will be our investors & bankers who provide us
huge money to startup this business. Following are the investors & bankers are willing to invest
their money in our business as:
 Investor # A – Rs. 26 Million – 26% to the total investment
 Investor # B – Rs. 20 Million – 20% to the total investment
 Investor # C – Rs. 15 Million – 15% to the total investment
 Banker # A – Rs. 13 Million – 13% to the total investment
 Banker # B – Rs. 11 Million – 11% to the total investment
 Banker # C – Rs. 7 Million – 7% to the total investment
 Legal Advisor – Rs. 4 Million – 4% to the total investment
 Total Investment Rs. 100 Million 100% to the total investment
For the investment requirement, we will prefer to get total amount investments from our
kind investors within the time period of 2 – 3 years to launching a business. At initially, we will
demand a lame – some amount to fulfill our initial costs & other heavy expenses which are consider
as basic requirement for any startup unit.
The amount of Rs. 100 Million is not enough for 7 investors to contribute in any business
when the 95% chances of success are present with heavy profit generation after the achievement of
breakeven stage of the business.

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Owners of the Business
According to the Investment Portfolio, the Investor A & Banker A will be included in the
members to Board of Directors due to their highest investment. All other owners of the Frito‟
Enterprisez will be categorized according to their part of investment in the total invested amount.
Any owner has no any legal role to operate the business except members to Board of Directors.
When any kind of special decision will take in the interest of the business, then “Owner‟s
Conference” – (all specified above owners) will call & get their point of views about specific
matter. In routine matters, no any owner has their influence on management & board of directors.
In the case of liquidation of firm, each & every owner will be responsible for their invested
amount in the Frito‟ Enterprisez according to their share in the total investment, as mentioned
above. The return on investments is applicable on the “Net Profit” of the firm, not another margin.
Owner Preference %age Investment
Return on
Investment (%)
Investor # A 26% 14%
Investor # B 20% 12%
Banker # A 15% 14%
Investor # C 13% 08%
Banker # B 11% 12%
Banker # C 7% 10%
Legal Advisor 4% 3%
CEO/Chairman Skilled Base 10%
Coordinator Skilled Base 7%
Company Savings
(for future
concerns)
10%
Total 100% + Skills 100%

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Intellectual Property
Our firm, Frito‟ Enterprisez have no
legal status till now, but we will register
themselves as soon as possible in the first
aspect of the business.
When we will register ourselves, then
we will use this monogram as the identification logo of the firm. On each & every product or
service offer by us will have the mono. This monogram is the “Trade Mark” for us as the legal
status of the firm. It will be our first preference that we will show this trade mark on every offer
product in the market.
After the launching of product, we will give legal status to our production process as patent.
In general sense, we will register our assembly line with the name of “Frito‟ Assembly Line”. The
purpose to get legal status for our production process is to eliminate the competitor role towards the
copy us. Our production process is the basic secret for our firm.

Section – 06: Industry Analysis
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Section – 06:
Industry Analysis
Industry Description
People demand the product according to their intuitions & preferences. We know that the 3rd
World Countries are very habitual to adopt the Western Culture. Likewise, Pakistan is also in line
with those countries which have big potential do exist for investment in the Snacks Industry in
Pakistan as the Demand or Growth rate is very high. Annual Growth Rate of Snacks Industry is
estimated at the rate of 20 % - 30 % per annum.
Most of the children, teenagers and young people are the target market of the product and
we have the experience that the eating habits of the target market is rapidly changing and they like
to have snacks all the time. Further potato and corn snacks are labeled as a meal replacement and
being a light fast food is becoming popular. The life style is improving and going to be changed and
also because of satellite invasion the demand is bound to register a considerable boost.
Now, people are enjoying with the potatoes & corn chips in so many flavor but we want to
change the trend of nation from vegetable to fruit chips which are better for health. The opportunity
for our new trend product is present in the market. We want to get benefit from this gap and make a
profit.
Industry Size
In common practice, there are
four phases present in the market
regarding the Product Life Cycle,
Introduction, Growth, Maturity & Decline.
Every sector of the economy is based on this
principle. The size of our industry is so large
because each kind of person likes snacks. There are
few firms who fulfill this demand ay national level. We have a golden opportunity to enter in this
market with some heavy investment & take over the trend.

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The demand of the present market is met by the mix of Branded and Unbranded Chips
available in the Market. There is 60% of the population which is Brand Loyal. However remaining
40% of the Un-branded Market can be attracted through heavy Advertisement Campaign.
On the basis of data collected and present survey of the market, current total market is
estimated at 2,000 Tons of Chips which is segregated as follows:
Industry Attraction
The Snacks Industry of Pakistan is on growing phase and has a lot of potential to absorb
firms easily. The window of opportunity is open for us with the high growth rate. The Annual
Growth Rate of Snacks Industry is estimated at the rate of 20 % - 30 % per annum.
Under the export prospects for the next decade are very promising given the sustained and
continued expansion of the Fast Food Industry abroad. Further Tariff cuts under Trade Agreements
are anticipated. Low per Capita consumption of Fries in the overseas market is a strong indication
of future demand. These upcoming symptoms have a great potential to make huge profit.
Profit Potential
Profit generation is the basic parameter to execute the business. The sales trend of crisps and
snacks is increased by 10% between 2000 and 2005 to at their peak at £ 2,386 million. A decline of
3.5% in 2004, however, took retail sales to £ 2,303 million due to the implementation of taxation
structure of retailers.
According to our analysis, we are producing unique product which will provide us a huge
profit after the achievement of our breakeven with in maximum 4 years to their execution. The
behavior of Pakistan‟s Market towards the unique products is so attractive. So, there are so many
chances to the generation of profit from this sector.
Segments Share % Quantity (Tons)
Branded 60 1,200
Unbranded 40 800
Total 100 2,000

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Target Market
Targeting a market is a critical factor in the marketing strategy of a
company. The target market should be in accordance with the company‟s goals
and objectives. The target market for Snacks Industry is comprehensive by
nature because the children, teenagers and young people are the target for our
industry. Home, rather than school, is the most popular destination for eating
crisps and savory snacks, with seven in ten children (70%) consuming them at
home, against around half (48%) who eat such snacks at school.
According to our marketing strategy, we will target first of all to colleges & universities of
major three cities. After the possible response from these cities we will take next step towards other
cities. After one to spot launching, we will start our work for the establishment of national
distribution network. We will establish this network within next 10 – 12 years, which include each
& every street of the Pakistan.
Competitive Position
The competitor analysis for Snacks Industry of Pakistan regarding marketing affairs is easily
understandable by this table, which provide segmented percentages as,
Super Crisp – Super Crisp is the market leader with maximum market share of almost near
40%. Now they are in big threat due to lays. The age segment for Super Crisp ranges from 5 – 20.
Golden Chips – The sale price of golden chips is Rs. 5. They are targeting to Sec B & C.
Kolson Chips – Kolson successful products include Slanty. They have chips but they are not
successful and usually not regularly available.
Pringles – Pringles is imported from other countries by P&G. They are hygienic, best
quality crisps and they are quite expensive. Pringles are targeting to Sec A1 & Sec A2.

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Chips Manufacturing Plants Currently in Operation
Following are the major and leading Producers of Potato Chips (Crisps) in Pakistan. The
Crisps are being produced by direct Potato Cuts/slices and also by Extrusion Process. However,
there is not a single Frozen French-Fries Producing Company / facility in Pakistan.
We know that all of these firms are operating in the vegetables snacks not in fruit snacks
like us. It will be a competitive advantage for us to produced a unique product for the market and
generate heavy profits. All of our competitors are strong but in condition to change the trend of the
market due to their brand reorganization at the national or international level.
Sr. No: COMPANY NAME
BRAND
NAME
1- Standard Foods (Pvt.) Limited Golden Chips
2- Tripple EM (Pvt.) Limited Super Crisps
3- Kohinoor Smith (Pvt.) Limited Smiths
4- Consolidate Kolson
5- Trading Enterprises Krincles

Section – 07: Marketing Plan
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Section – 07:
Marketing Plan
We are producing “Consumer Goods” which are purchased by ultimate user from retailer
outlets for their own personal usage. Within the head of consumer goods, we are producing
“Convenience Goods” – most of the time these goods are purchased in small quantities and have a
low unit value. The profit margin on convenience goods is not so much as like other kinds of goods.
According to the term Marketing Research – the systematic design, collection, analysis &
reporting of data relevant to a specific marketing situation facing an organization. We have
conducted marketing research through questionnaires in our target market.
Survey Research – the most widely used method for primary
data collection, is the approach best suited for gathering descriptive
information. A company that wants to know about people‟s
knowledge, attitudes, preferences or buying behavior can often find
out by asking them directly. The questionnaire of our marketing
research is attached in the Appendix.
Product Feasibility & Strategy
Our product “Banana Crazee”, the modified form of “Banana Chips” in the national market
of Snacks Industry will may change the trend of people from vegetable snacks towards the fruit
snacks. That‟s why the slogan of our product is “Banana Crazee – the taste of nature”.
In our initial launching, we are introducing two products of “Banana Crazee” with different
tastes to understand the behavior of the market & customer towards the fruit snacks as,
 BANANA CRAZEE – Saltiest
 BANANA CRAZEE – Chill Up
Banana Crazee – Saltiest: The salty flavor of snacks especially for kids & health
conscious people who avoid from the high fats & sugar. The neutralized iodized (0.025%) salt will
be added in this product for the taste & ultimate flavor.

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Banana Crazee – Chill Up: The chilly flavors of snacks for young people especially
for girls who demand something chill in their food. Various kinds of masala‟s and magnesium salts
will be added in this product for the taste.
We are introducing two packing for both flavors as,
 Mini – Pack Banana Crazee = 30 Grams with Rs. 20/= for consumer
 Midi – Pack Banana Crazee = 65 Grams with Rs. 35/= for consumer
* RP = Retail Price – price for ultimate consumer
* The Firm‟sProfit + Distribution Channels Profit = Retail Price (RP)
The product analysis regarding their ingredients will be shown on the product design
(prototype) which is attached in the Appendix. The analysis of ingredients is determined by the
Forensic Department of Pakistan. The report of Forensic Department provides a satisfaction to our
product regarding the reverse engineering matters of our product, which are impossible due to their
unique kinds of tastes & items in it.
According to our price analysis, which is shown on next pages, we are in condition to
generate a great profit from each unit sold down in the market. The Trade Price (firm‟s price for
their customers) is shown in this table as:
* TP = TradePrice – firm‟s price for their customers
* MasterPacking = Cartons
Product Taste Weight RP (For Mini – Pack) RP (For Midi – Pack)
Banana Crazee Saltiest 30 Grams Rs. 20/= Rs. 35/=
Banana Crazee Chill Up 65 Grams Rs. 20/= Rs. 35/=
Product Weights / Quantity TP of Each Unit
Master
Packing
TP for Master
Pack
Banana Crazee –
Saltiest
30 Grams / Mini –
Pack
Rs. 17/= 48 pieces Rs. 816/=
Banana Crazee –
Chill Up
30 Grams / Mini –
Pack
Rs. 17/= 48 pieces Rs. 816/=
Banana Crazee –
Saltiest
65 Grams / Midi –
Pack
Rs. 29/= 24 pieces Rs. 696/=
Banana Crazee –
Chill Up
65 Grams / Midi –
Pack
Rs. 29/= 24 pieces Rs. 696/=

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* Mini Master Packing = (Rs. 17 × 48 pieces) = Rs. 816/=
* Midi Master Packing = (Rs. 29 × 24 pieces) = Rs. 696/=
Marketing Strategies
We are discussing four marketing strategies which will may valid for next 15 years of the
business life. All of these strategies are based on the time period to launching the product in any
city or part of the Pakistan.
 Initial Launching Marketing Strategy
 Phase Marketing Strategy
 General Marketing Strategy
 National Marketing Strategy (Appendix)
All of these strategies have following terms which are used by “Frito‟ Enterprisez” for their
marketing plans & promotions as:
 Discount Package
 Free Scheme
 Extra – Benefits Allowance
Discount Package – under this sales promotional package, we are giving various kinds of discounts
to distributors, retailers & also consumers for attract their attention towards us. The discount range
in this package is 2% - 15% according to time & situation.
Free Scheme – under this sales promotional package, we are giving free units (in master packing)
on the master packing sales of cartons in big quantity. This scheme is valid only for distributors &
retailers. The range of master packing is varies from 1 carton – 7 cartons.
Extra – Benefits Allowance – under this promotional package, we are offering so many kinds of
various things which will provide benefits to retailers & consumers not to distributors. Following
things are giving under this package as:
 Product Display Stands
 Publicity & Advertisement Material
 Display Allowances
 Discount Cards to Loyal Customers
 Extra – Discount to Anyone (0.5% - 3.0%)

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Initial Launching Marketing Strategy
When we want to launch our product in any area of the Pakistan, then this initial strategy for
marketing & promotion will be implement for the penetration into the market as soon as possible.
Before 10 days to launching the product in any area, we will start our promotional activity which
includes, pamphlets, Banners, FM Adz, Cable Adz and Sign Boards Flexes. The quantity for this
promotional budget will vary with respect to the specific area & our promotional budget. All of this
promotional campaign will manage by Marketing Manager.
When we launch our product into the market, then we will never target to the distribution
network of this specific area, we will directly target to retailers & consumers who provide us value.
This penetration strategy wills breakdown the monopoly of distributor regarding our product. We
will introduce our product at initial level to colleges & universities of the specific area. The
canteens of these institutions will provide us demand in students & also in local market.
Under the Discount Package, we will provide 15% discount to our retailer or canteen owner
on retail price (RP) of each master packing for either (Mini- or Midi Pack). Under the Free Scheme,
we will offer him 2 Free Carton with 10 Mini – Pack Cartons & 1 Free Carton with 10 Midi – Pack
Cartons. It is the fully choice of retailer or canteen owner either he select Discount Package or Free
Scheme but not both.
Under the Extra – Benefits Allowance, we will provide him 1 stand on the net purchase of 3
cartons of anyone master packing. If he wants to purchase more than 3 cartons, then we will
provide him 2 stands on the net purchase of 5 cartons. At least one stands is compulsory for each
retailer or canteen owner. We will provide one banner to each retailer and 100 pamphlets without
any kind of cost for their counter display on each delivery.
If we conduct any “Spot Activity” for consumers then we will provide him 40% discount on
the retail price. This spot activity must be sponsor by Frito‟ Enterprisez may on the behalf of some
retailer or any other entity. For the conduction of spot activity, our Marketing Manager will manage
whole campaign.
This strategy will be valid till after 30 days to the introduction of the product in the market.
After 30 days, we will move towards the next scheme.

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Phase Marketing Strategy
After the 30 days to the launching of product, we will implement the “Phase Marketing
Strategy”. Under this strategy, we will provide 10% discount to each retailer on retail price (RP)
under the activity of Discount Package. If he want to enjoy with the Free Scheme, then 2 Free
Cartoons with 10 Mini – Pack Cartons & 1 Free Carton with 10 Midi – Pack Cartoons. This scheme
is same as like in previous strategy. Like previous strategy, it will be the fully choice of retailer or
canteen owner either he select Discount Package or Free Scheme but not both.
Under the Extra – Benefits Allowance, we will provide him 1 stand on the net or credit
purchase of 3 cartons of anyone master packing. If he wants to purchase more than 5 cartons, then
we will provide him their demanded number of stands. At least one stands is compulsory for each
retailer or canteen owner. We will provide one banner to each retailer and 100 pamphlets as
promotional activity to their counter display on each & every delivery.
If we conduct any “Spot Activity” under the Phase Marketing Strategy for consumers then
we will provide him 40% discount on the retail price. This spot activity must be sponsor by Frito‟
Enterprisez may on the behalf of some retailer or any other entity. For the conduction of spot
activity, our Marketing Manager will manage whole campaign.
This strategy will be valid till the allocation & deal of any distributor in the specific area.
Under our projection analysis, we will get no more time to the allocation of any distributor for our
product. According to Market Analysis, we demand just maximum 5 months for the execution of
any distribution in specific area, where we already has launched our product.
General Marketing Strategy
When we have our own distributor in the specific area where we have already launched our
product, then we will implement our “General marketing Strategy”. This strategy is just valid for
Distribution Network, if in any case the distribution network will may not establish in the specific
area within 5 months to launching of our product. Then we will continue the previous strategy till
we establish our sole in this area.

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Under this Discount Package, we will provide Rs. 1.5/= on Mini – Pack & Rs. 3/= on Midi –
Pack, on each unit without any kind of carriage expenses. And, distributor will provide Rs. 1.5/= on
Mini – Pack & Rs. 3/= on Midi – Pack, on each unit to retailer, all carriage expenses of distributor
will less from this profit margin of retailer. Except from this profit margin on each unit, we will
provide 1 Free Cartoons with 10 Mini – Pack Cartons & 1 Free Carton with 15 Midi – Pack
Cartoons under Free Scheme.
Under the Extra – Benefits Allowance, we will offer following this to each distributor as our
authorized dealer in the specific area, which jurisdiction is allocated by our Marketing Manager.
 All the expenses of carriage till the delivery in the hands of the distributor
 He have ability to demand sufficient stands according to their requirement
 He have ability to demand enough promotional material as their requirement
 All the advertisement expenses will be bear by the firm
 Firm will allocate a sufficient balance for the retailers as their Display Allowance which
given on the behalf of the distributor
 The Usage of Display Allowance is in the hands of distributor with specific evidence
 The Marketing Manager have ability to give 0.5% to 3.0% extra discount to any
distributor on the behalf of their huge delivery & repeat sales behavior
If we conduct any “Spot Activity” under the General Marketing Strategy for consumers then
we will provide him 35% discount on the retail price. This spot activity must be sponsor by Frito‟
Enterprisez just on the behalf of our distributor who gain the profit 5% of the total sales in this spot
activity as their profit margin. For the conduction of spot activity, our Marketing Manager will
manage whole campaign.
This strategy will be valid for the implementation of new strategy for any distributor.

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Pricing Strategies
We knew that price competition is the core element in the free economy. For setting prices
of products various kinds of supply & demand forces shows their behavior in the general market.
The companies are not freely independent to charge their prices from customers according to their
demand.
We allocate our prices or customers & consumers on the following basis according to this
given below pattern as:
* Total Variable Cost = representsthe cost of product which firm bear to produce a product which will be discussed in the Appendix
* Carriage Expenses = allthe expenses which firm will beartotransport the product in the hands of distributor or retailer
* Selling Commission = Rs. 0.50 or each unit will be equally divided into the Marketing Manager & specific Salesperson who so ld this
unit
* Fixed Reserve Cost = a reserve which may used for any affair of the firm may be for the recovery of Fixed Cost by the instructions of
CEO/Chairman
* FirmProfit = This is the Gross Profit Margin of the firm which will used to pay various kinds of expenses & fixed costs to the operations
of the Frito‟ Enterprisez
* Trade Price = a firm price fortheir customers but not fortheir retailers
* Distributor Margin = a gross profit forthe distributorto operatetheir business
* Retailer Margin = a gross profit forthe retailer which may includes the carriage expenses from distributor
* Retail Price = a price for the ultimate consumer who purchase our product fromthe retailer elsewhere inthe Pakistan
Price / Cost For Mini – Pack (in rupees) For Midi – Pack (in rupees)
Total Variable Cost 7.35 14.15
Carriage Expenses 0.50 0.50
Selling Commission 0.50 0.50
Total Cost Per Unit 8.35 15.15
Fixed Cost Reserve 1.00 1.00
Firm Profit 7.65 12.85
Trade Price (TP) 17/= 29/=
Distributor Margin 1.50 3.00
Retailer Margin 1.50 3.00
Retail Price (RP) Rs. 20/= Rs. 35/=
Weights (in grams) 30 Grams 65 Grams

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Promotional Strategies
Most of the promotional strategies are discussed in the product feasibility & strategy but for
more common practice, we also discuss various modes of promotional activities which choose by
our firm for themselves under the limitations of their budget.
We will start our various promotional activities since 10 days before to the initial launching
of our product in the specific area market. In our first 3 years, we will use following promotional
modes to convey our message towards the general public as:
 Pamphlets
 Banners
 Voucher Billing Pads
 Sign Board Flexes
 FM Band Advertisement
 Local Cable Advertisement
After the 3 years to the launching of our product, when we feel we are in better condition to
handle our brand value then we will target National Media for our promotional advertisements. We
will target PTV, Geo Network, Express Network and Duniya Network in possible time. Our first
preference for the national advertisement will be the prime time.
For the day first to next 5 years, we will provide following promotional activities &
customers behaviors activities for the loyalty of our brands as:
 Toll Free Number on backside to product – design
 E – Mail ID + Web link on the product – design
 Complaint Officer in the Head Office, Lahore
 Garments with labeled promotional adz (as t – shirts, bands, etc)
 Shopping Bags
 Calendars
 Key Chains, etc.

Section – 08: Operational Plan
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Section – 08:
Operational Plan
The concept of production refers to the transformation of inputs or resources into outputs of
goods & services. The Inputs are the resources which used in the production of goods & services.
There are two kinds of inputs as Fixed Inputs & Variable Inputs. The term Fixed Inputs refers that
inputs or resources which cannot change be readily changed during the time period under
consideration, except perhaps at very great expenses. And, the Variable Inputs refers that inputs or
resources which can easily varied and on very short notice.
The concept of Short – Rum Time Period & Long – Run Time period is mostly used in the
production concept. For the Short – Rum Time Period, we refers the time period during which at
least one input act as fixed. And for the Long – Run Time Period, we refers the time period when
all the inputs are variables.
Method of Production
We have proper Assembly Line (A/L) for our production setup with the name of “Frito‟
Assembly Line” (A/L) which has control on each & every operation of the production. Our
Assembly Line has following characteristics as:
 This Line provide 1250,000 units production per year
 Daily 9 Hours working time
 This Production Capacity will may be enhance by the induction of more plants
 Quality Output
 Efficient use of inputs or resources
 Low or no wastage
 Minimum ratio of Natural Variation in the Final Output
 Labor & Machinery Oriented Assembly Line
 Have complete control on cost behavior of product cost
 No Extra – Qualified & Experienced Labor is required

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For the operational practice of the Frito‟ Assembly Line, we required a huge capital &
manpower but all of these costs will be no more when we get huge production with very low cost
from this production process with minimum ratio of variation.
Production Capacity
The Production Analysis for first 5 years with relevant plant & machinery as shown in
Appendix, our Frito‟ A/L has the following production capacity to fulfill the demand of the market
in very easy & convenient way.
Availability of Labor
In the “Frito‟ Assembly Line” (A/L) for the Production Capacity of 1250,000 units
annually, we have to require just 4 skilled persons without any kind of skilled labor who manage
the whole Assembly Line, our production process is so simple. There is no any need to get
experienced & extra – skilled labor for the production operations. We required most skilled people
for the plant operations in following departments as:
 Sterilizing Department
 Frying Department
 Masala‟s Containers
 Packing to Packets Department
Production Capacity Analysis
Particulars Produced Units
Per Hour Production - 440
Daily Production (440 × 9 hrs) 3,960
Monthly Production (3,960 × 26 days) 102,960
Bi - Annually Production (102,960 × 6 months) 617,760
Annually Production (102,960 × 12 months) 1,235,520
(with limitations)
Annually Production (Estimated) 1,250,000

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For the Frito‟ Assembly Line, we are offering wages on daily basis for the labor and salary
+ wages for the four Skillman. We are providing sufficient pays to our labor for their benefits on
daily basis to raise their living standards.
Labor Wages & Salaries Portfolio
We are providing some extra ratio wages on daily basis to or labor. It is just because we
want to get work from them at their maximum level. The working hours are 9 for our production
day. The A/L working timing will be fixed for each & every worker & employee as:
 From 8:00 am to 1:00 pm
 1 Hour Breakdown
 From 2:00 pm to 6:00 pm
All kind of labor affairs will be discussed in the “Frito‟s Newsletter” according to the
specific time & situation. The Incharge for the Assembly Line (A/L) will be Production Manager &
HR Manager who also responsible for each & every aspect of the A/L.
For the proper working on the Assembly Line (A/L) following staff will be present on this
deck in the working timing as:
Labor Salary (monthly) Wage (daily) Working Hours
Worker - N/A - Rs. 250/= 9 Hours
Skillman Rs. 5000/= Rs. 150/= 9 Hours
Labor Quantity Work Arena
Production Manager 1 Incharge of A/L
Quality Inspector 1 Quaintly Checker
HR Manager 1 Incharge for Human Resource
Asst. HR Manager 1 Assistant for Hr Manager
Clerical Staff 1 For A/C basedmatters
Skillman 4 Skill – Person for A/L
Worker 15 Labor for A/L
Worker 5 Helper for A/L
Bottom Line Management 2 (Day & Night) Watch Man
Bottom Line Management 1 Sweeper
Bottom Line Management 1 Helper

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Production Assembly Line
Raw Material Stock Banana Cutting Deptt. Sterilizing Deptt.
Drying Deptt.
Frying Deptt.
Evaporating Deptt.
Stock Outside to Firm Masala’s Containers
- Saltiest
- Chill Up
Packing to Packets
Company Stock Warehouse
Master Packing
All the plants in this
Assembly Line have the
Production Capacity of
1250,000 units per year

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Quality Control
Frito‟ Enterprisez is “Quality Conscious” organization, for the proper allocation of quality
affairs in our production process we are hiring a Food Quality Inspector for our own organizational
quality affairs. He will be responsible for the quality techniques which may implement on the
production operations. It is our first preference to produce minimum variation output for our
customer. For the quality enhancement program, we follow those techniques which are less costly
& greater beneficial for us.
Quality Statement
“The quality is an integral part of our commitment to world – class products. Our aim is to
provide zero defected and zero variation products to our consumers”
For the Quality Enhancement Program in the Frito‟ Enterprisez, we will use the Statistical
Process Control (SPC). According to SPC, we will use a statistical method for separating variations
from the special cause to natural cause, for the elimination of the special cause variations and
minimizing the natural cause variations on the continual basis improvements in the production
process.

Section – 09: Financial Plan
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Section – 09:
Financial Plan & Analysis
Finance is the most important aspect of the business regardless to their qualified product or
service. Without it the startup & survival of the business is impossible. The invention, discovery &
execution of idea into practical are not as so much important as the Finance is important to
commercialize anything. According to the Howard & Upton,
“Finance may be defined as that administrative area or set of administrative functions in an
organization which relate to the objectives as satisfactory as possible”
For the proper execution of Frito‟ Enterprisez, Finance is the most important aspect to
startup the firm and also has working capital for next 3 – 4 years to operate various matters of the
business. Our total capital requirement is Rs. 225 Million with 90% return on Net Profit of the Firm
to all Stakeholders. And the remaining 10% will be act as the “Saving Reserve” for the Frito‟
Enterprisez.
Total Capital Requirement
Our firm “Frito‟ Enterprisez” will be work under the status of “Private Limited Company”
who has various partners which may invest their money and skills. The ownership title of this
organization will be goes to various personalities who invested their money & experiences with us.
But the general partners & owner of our business will be our investors & bankers who provide us
huge money to startup this business. Following are the investors & bankers are willing to invest
their money in our business as:
- Investor # A – Rs. 26 Million – 26% to the total investment
- Investor # B – Rs. 20 Million – 20% to the total investment
- Investor # C – Rs. 15 Million – 15% to the total investment
- Banker # A – Rs. 13 Million – 13% to the total investment
- Banker # B – Rs. 11 Million – 11% to the total investment
- Banker # C – Rs. 7 Million – 7% to the total investment
- Legal Advisor – Rs. 4 Million – 4% to the total investment
Total Investment Rs. 100 Million 100% to the total investment

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Initial Capital Requirement
For the proper operations of the Frito‟ Enterprisez, we will demand capital in various 5
stages, means we will tackle the capital from all investors & bankers within 5 years to startup the
business. And, within these 5 years we will also achieve our breakeven point and provide some
return to our investors.
All the details for the utilization of this funding is given below here, but also see the
Appendix for the proper understanding each & every transaction.
First Year Requirement (Initial Costs)
Particulars Amt (in Rupees)
Plant & Equipments 2,030,000
Office Equipments + Furniture 1,163,000
Other Fixed Costs 3,445,000
Annual Salaries Reserves 7,872,000
Wages Reserve (Rs. 146,000 × 12) 1,752,000
Promotional Budget 5,000,000
Operating Expenses Reserves 5,532,000
Raw Material Reserve 18,000,000
Working Capital 4,000,000
Preliminary Expenses 1,206,000
Total Ist Year Capital Requirement 50,000,000

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Return on Investment (ROI) Policy
According to our Return on Investment (ROI) Policy, we will give following returns to all
investors on the “Net Profit” of the firm, by deducting all the expenses & costs of the business.
These returns are calculated on the investment basis of each investor/banker.
According to our project data, we will give possible returns to our investors in the following
manner as:
Projected Rate of Returns to Investors (figures in “000”)
Particular
Rate of
Return
Year - 1 Year - 2 Year - 3 Year - 4 Year - 5 Year - 6 Year - 7 Year - 8
Year -
9
Year
- 10
Investor # A 14% - 200 608 913 1,578 1,847 3,054 4,136 5,924 6,064
Investor # B 12% - 200 522 782 1,352 1,583 2,617 3,545 5,078 5,198
Investor # C 8% - 200 313 521 902 1,056 1,745 2,363 3,385 3,465
Banker # A 14% - 200 608 913 1,578 1,847 3,054 4,136 5,924 6,064
Banker # B 12% - 200 522 782 1,352 1,583 2,617 3,545 5,078 5,198
Banker # C 10% - 200 435 652 1,127 1,320 2,181 2,954 4,232 4,332
Legal Advisor 3% - 200 130 196 338 396 654 886 1,269 1,299
CEO/Chairman 10% - 200 435 652 1,127 1,320 2,181 2,954 4,232 4,332
Coordinator 7% - 200 304 456 789 924 1,527 2,068 2,962 3,032
Savings 10% - 200 435 652 1,127 1,320 2,181 2,954 4,232 4,332
Owner Preference %age Investment
Return on Investment
(%)
Investor # A 26% 14%
Investor # B 20% 12%
Banker # A 15% 14%
Investor # C 13% 08%
Banker # B 11% 12%
Banker # C 7% 10%
Legal Advisor 4% 3%
CEO/Chairman Skilled Base 10%
Coordinator Skilled Base 7%
Company Savings (for future concerns) 10%
Total 100% + Skills 100%

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CVP Analysis
According to the Cost, Volume & Profit (CVP) Analysis, we will achieve our breakeven
point within the time period of 3 – 4 years. After the achievement of breakeven point, our each unit
has the profitability margin of 45%. When we will exclude all expenses from this ratio then may we
will have 30% for the distribution of return to investors. And we also has 5% as “Saving Reserve”
for the Frito‟ Enterprisez as “Ploughing – Back Profit” which refers the use of business profit for its
development. This is the best one strategy to expand the business without any kind of debt or
external financing.
Product Variable Cost Schedule
Particular For Mini - Pack For Midi - Pack
Weight 30 Grams 65 Grams
Basic Raw Material 1.75 3.70
Banana Cutter Deptt. 0.00 0.00
Sterilizing Deptt. 0.70 1.90
Drying Deptt. 0.00 0.00
Frying Deptt. 1.00 1.70
Evaporating Deptt. 0.15 0.50
Masala's Deptt. 0.75 1.60
Packingto Packets 2.50 3.75
MasterPacking 0.50 1.00
Fixed Cost Reserve - FCR 1.00 1.00
Total Cost / per unit 9.35 16.15
Firm'sProfit 7.65 12.85
Trade Price (TP) 17.00 29.00
Retail Price (RP) 20.00 35.00
(All the given belowratios are calculated according to the (TP)
Total Cost Ratio 43.24% 48.79%
Contribution Margin Ratio 56.76% 51.21%
Profitability Ratio 45.00% 44.31%

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For the achievement of breakeven, we have,
Break – Even Units = 3,265,307 units
Break – Even Units = 3,300,000 units (EST.)
According to Frito‟ Assembly Line (A/L), the breakeven point will be achieve very soon
due to our high production capacity with low per unit cost as:
Break – Even Time Period = 2.64 years (32 months)
According to our CVP Analysis, we will achieve our breakeven after 32 months from the
sale of first unit, if we sale 1,250,000 units each year estimated. In our common practice, we will
achieve the breakeven easily maximum in 3 years because we have unique trend product for the
market with reasonable price which have high profitability margin for us.
In our common observation, we have 45% average profit on each unit which sale down in
the market after the achievement of the breakeven stage of the business. This is investor attracting
calculations which are easily possible in the Food Industry.

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Projected Income Statement
(Figures in “000”)
Particular Year - 1 Year - 2 Year - 3 Year - 4 Year - 5 Year - 6 Year - 7 Year - 8 Year - 9 Year - 10
Sales 25,900 33,300 42,550 48,100 57,350 74,800 94,600 113,300 143,264 145,596
CGS 7,525 9,675 12,363 13,975 16,663 25,840 32,680 39,140 49,491 50,297
Gross Profit Margin 18,375 23,625 30,188 34,125 40,688 48,960 61,920 74,160 93,773 95,299
Selling Commission 350 450 575 650 775 850 1,075 1,288 1,628 1,655
Selling Expenses 350 450 575 650 775 850 1,075 1,288 1,628 1,655
FCR 800 1,200 1,500 1,400 1,300 1,600 1,800 2,575 3,256 3,300
Net Operating
Income
16,875 21,525 27,538 31,425 37,838 45,660 57,970 69,010 87,261 88,690
Salaries 7,872 7,872 7,872 7,872 7,872 16,404 16,404 16,404 16,404 16,404
Operating Expenses 5,532 5,532 5,532 5,532 5,532 7,236 7,236 7,236 7,236 7,236
Promotional
Expenses
5,000 2,500 2,500 1,700 2,061 8,000 8,000 8,000 8,000 8,000
Depreciation 332 315 300 285 270 1,045 1,045 1,045 1,045 1,045
Financial Charges 10,125 12,125 10,125 10,125 10,125 10,125 10,125 10,125 10,125 10,125
Net Profit (before
Tax)
(1,986) (1,819) 6,209 9,311 16,099 18,850 31,160 42,200 60,451 61,880
Excise Duty (298) (273) 931 1,397 2,415 2,828 4,674 6,330 9,068 9,282
Sales Tax (298) (273) 931 1,397 2,415 2,828 4,674 6,330 9,068 9,282
Net Profit (1,390) (1,274) 4,346 6,518 11,269 13,195 21,812 29,540 42,316 43,316
Investor Returns (1,251) (1,146) 3,912 5,866 10,142 11,876 19,631 26,586 38,084 38,985
Saving Reserve (139) (127) 435 652 1,127 1,320 2,181 2,954 4,232 4,332

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Projected Balance Sheet
(Figures in “000”)
Particular Year - 1 Year - 2 Year - 3 Year - 4 Year - 5 Year - 6 Year - 7 Year - 8 Year - 9
Year -
10
Fixed Assets
Total Fixed Assets 6,638 6,306 5,991 5,691 5,406 14,595 13,550 12,505 11,460 10,415
Less - Deprecation (5%) 332 315 300 285 270 1,045 1,045 1,045 1,045 1,045
Total Fixed Assets
Value
6,306 5,991 5,691 5,406 5,136 13,550 12,505 11,460 10,415 9,370
Current Assets
Operating Expenses 5,532 5,532 5,532 5,532 5,532 7,236 7,236 7,236 7,236 7,236
Promotional Budget
Reserve
5,000 2,500 2,500 1,700 2,061 8,000 8,000 8,000 8,000 8,000
Salaries Reserve 7,872 7,872 7,872 7,872 7,872 16,404 16,404 16,404 16,404 16,404
Wages Reserve 1,752 1,752 1,752 1,752 1,752 5,340 5,340 5,340 5,340 5,340
Working Capital 4,000 344 844 144 783 1,561 200 200 200 200
Raw Material Reserve 18,000 18,000 18,000 18,000 18,000 40,000 40,000 40,000 40,000 40,000
Stock & Spares 9,913 12,675 15,750 10,213 6,988 22,952 29,184 28,956 18,377 6,992
A/C Receivables 16,835 21,645 27,658 36,265 47,278 57,620 71,490 83,645 93,122 94,638
Banked Cash 20,938 35,109 63,511 143,095 185,009 157,548 233,627 299,213 391,117 470,775
Goodwill 852 580 890 1,021 1,589 1,789 2,014 2,546 2,789 3,045
Total Assets 97,000 112,000 150,000 231,000 282,000 332,000 426,000 503,000 593,000 662,000
Capital Equity:
Induced Capital 60,000 96,000 132,000 167,000 203,000 291,000 368,000 445,000 522,000 599,000
Profit for the Year (1,390) (1,274) 4,346 6,518 11,269 13,195 21,812 29,540 42,316 43,316
Business Draws - (2,000) (2,100) (2,500) (2,400) (2,300) (2,100) (2,400) (2,500) (2,100)
Current Liabilities
Long -Term Loans 35,000 15,000 10,000 50,000 62,000 18,000 24,000 13,000 10,000 16,000
A/C Payables 2,634 3,386 4,327 7,891 5,832 9,044 11,438 13,699 17,322 1,764
Various Provisions 756 888 1,427 2,091 2,299 3,061 2,850 4,161 3,862 4,020
Total Owner's Equity 97,000 112,000 150,000 231,000 282,000 332,000 426,000 503,000 593,000 662,000

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Exit Strategy
If our business will never proceed towards the profit generation then we will provide an exit
way to our all stakeholders to leave the organization in reasonable & respected way in the better
interest of the business community. Following some strategies are shown which we will provide in
case of loss in the business as:
 Sale of Business to any Heavy Weight of Snacks Industry with Product Formula
 To merge “Frito‟ Enterprisez” with any other Industry related Firm
 Bank – Raptly Slip to our all stakeholders

Section – 10: Critical Risks Factors
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Section – 10:
Critical Risks Factors
 Management Risks
 Production Wastage
 Labor Conflicts
 Low Coordination
 Leg Pooling Environment
 Conflicts in Board of Directors
 Conflicts in Directors & Investor/Banker
 Low Level Management Problems
 Marketing Risks
 The Market – Breakdown
 Any Market Crash
 Lays – As Competitor
 Conflicts with Distributors
 Decline in the Industry
 Sudden Change in Trend
 Operating Risks
 Wastage During the Production
 Low Quality of Banana‟s
 Conflicts with Suppliers
 Less Coordination in A/L
 Less Working Environment in A/L
 Conflicts b/w A/L Staff

Section – 10: Critical Risks Factors
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 Financial Risks
 Less Capacity for Fulfill the Demand in first 5 years
 Financial Crack Down in Market
 Political Instability
 Law & Order Instability
 Extra Money Utilize for Quality Enhancement
 High Wastage Dumping Cost
 Energy Crisis
 Lays – Financial Take Over
 Intellectual Property
 Govt. Banned Policies
 Decline in Goodwill by Competitor
 Stolen of Trade Secrets
 Legal Copy of Copyrights
 Public Rules & Regulations
 Other Risks
 High Taxation
 Inflation Trends in the Market
 Decline in the Value of Money
 Rising Prices of Raw Material
 Govt. Food Department Conflicts
 Appendix
 10 Years Capital Requirements

Section – 11: AppendiX
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Section – 11:
AppendiX
Consumer Segmentation
We get many advantages from this survey research as its flexibility – which we can use our research & their
results in producing so many other products which will may provide us much value in the future. The market
segmentation in our market is like this:
National Marketing Strategy
This strategy will be implemented by the mutual concerns of all the members to board of directors & other
heads of various departments, according to the larger interest of the Frito‟ Enterprisez. This strategy will be valid for the
national – level not for any specific area like others.
The implementation time for this marketing plan will be minimum 8 years to the proper initial launching of our
product in any specific area. Before to the time period of 8 years, this strategy will never be implementable.
Under this strategy, we will target to our distributors not retailers because the profit margin for retailers will be
same as like in previous “General Marketing Strategy”. According to the Discount Package, we will provide Rs. 1.5/=
on Mini – Pack & Rs. 3/= on Midi – Pack, on each unit without any kind of carriage expenses. And, distributor will
provide Rs. 1.5/= on Mini – Pack & Rs. 3/= on Midi – Pack, on each unit to retailer without any kind of carriage
expenses. All the distributors & retailers carriage expenses will be bear by Frito‟ Enterprisez.
Under the Free Scheme, we will provide 2 Free Cartons with 20 Mini – Pack Cartons & 2 Free Cartoons with
25 Midi – Pack Cartoons to distributor except from the benefit of Discount Package. Under the Extra – Benefits
Allowance, we will offer following this to each distributor as our authorized dealer in the specific area, which re –
jurisdiction is allocated by our Marketing Manager.
 All the expenses of carriage till the delivery in the hands of the distributor & retailer
 He have ability to demand sufficient stands according to their requirement
 He have ability to demand enough promotional material as their requirement
 All the advertisement expenses will be bear by the firm
Geographic Launched in all main cities of Pakistan
Demographics
Age
Gender
Family Life-
Cycle
Income
Occupation
Education
5 – 25 as core target market
Male, Female.
Young, Single, Children, New couples.
Pak Rs. 25000
College and School going students.
Prep – Masters
Psychographics
Social Class
Life-Style
Personality
Middle, Middle Upper, Upper class.
Social, Food Lover , Sporty
Extrovert, Complaint
Behavioral
Benefits
User Rates
Loyalty Status
Readiness Stage.
More material, Instant gratification, Good
taste
Light, Mediumand heavy users.
None, medium and strong as well.
Unaware, informed, present user.

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 Firm will allocate a sufficient balance for the retailers as their Display Allowance which given on the
behalf of the distributor
 The Usage of Display Allowance is in the hands of distributor with specific evidence
 The Firm will provide 2% extra discount to those distributor who will continue their working relations
with us since from first day to the establishment of distribution network in the specific jurisdictions.
 The Marketing Manager have ability to give 0.5% to 1.5% extra discount to any distributor on the behalf
of their huge delivery & repeat sales behavior
If we conduct any “Spot Activity” under the National Marketing Strategy for consumers then we will provide
him 25% discount on the retail price. This spot activity must be sponsor by Frito‟ Enterprisez just on the behalf of our
distributor who gain the profit 5% of the total sales in this spot activity as their profit margin. For the conduction of spot
activity, our Marketing Manager will manage whole campaign.
This strategy will be valid for minimum 10 years after their first day to implementation, and after this time
period, Firm‟s officials have ability to change this strategy according to the new trends of the market.
Future Prospects
For the future concerns, we are very familiar that our production capacity should enhance to capture the market
under “Twice Production Strategy”. For this purpose, we will enhance our production capacity till double after 5 years
to launching a product. Our plant & machinery equipments are not costly as like other firms, so due to this benefit we
will easily double our production within next 6 years.
Now we will in condition to produce 1250,000 units annually, but with the twice enhancement in production
capacity, we will produce 2500,000 units annually under the program of “Twice Production Strategy”. This figure will
also generate our profit margin at high level without any kind of high fixed cost on the firms‟ profitability because for
this purpose, we have the reserve of “Fixed Cost Reserve” (FCR).
By Twice Production Strategy, our resources & labor cost will also raise up. For this production concern, we
have high profitability margin and also the reserve of expenses / operations of factory. We are very hopeful that our
finance will never create any problem in our business.
Production Capacity Analysis
Particulars Produced Units
Per Hour Production - 900
Daily Production (900 × 9 hrs) 8,100
Monthly Production (8,100 × 26 days) 210,600
Bi - Annually Production (210,600 × 6 months) 1,263,600
Annually Production (210,600 × 12 months) 25,527,200
(with limitations)
Annually Production (Estimated) 2,560,000

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Capital Requirement / Capital Flow of Ten Years
First Year Requirement (Initial Costs)
Wages Reserve (Rs. 146,000 × 12) 1,752,000
Preliminary Expenses 1,206,000
Second Year Requirement
Wages Reserve (Rs. 146,000 × 12) 1,752,000
Working Capital 344,000
Third Year Requirement
Wages Reserve (Rs. 146,000 × 12) 1,752,000

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Fourth Year Requirement
Wages Reserve (Rs. 146,000 × 12) 1,752,000
Fifth Year Requirement
Wages Reserve (Rs. 146,000 × 12) 1,752,000
Sixth Year Requirement (New - Initial Costs)
Wages Reserve (Rs. 445,000 × 12) 5,340,000

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Seventh Year Requirement
Wages Reserve (Rs. 445,000 × 12) 5,340,000
Eight Year Requirement
Wages Reserve (Rs. 445,000 × 12) 5,340,000
Ninth Year Requirement
Wages Reserve (Rs. 445,000 × 12) 5,340,000
Tenth Year Requirement
Wages Reserve (Rs. 445,000 × 12) 5,340,000

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Total Fixed Costs Details for Initial 5 Years
Remuneration Schedule (Monthly)
Person Nature Quantity Amt (in Rupees)
CEO/Chairman Allowance 1 10,000
Investor Allowance 1 10,000
Banker Allowance 1 10,000
Coordinator Allowance 1 10,000
Legal Advisor Allowance 1 10,000
Finance Manager Salary 1 35,000
Marketing Manager Basic Salary 1 30,000
Accountant Salary 1 20,000
Production Manager Salary 1 25,000
Quality Inspector Salary 1 20,000
HR Manager Salary 1 30,000
Asst. HR Manager Salary 1 20,000
Business Consultant Agency Fixed Fee 1 20,000
Law Firm Fixed Fee 1 10,000
Audit Firm Fixed Fee 1 8,000
Asst. Cost Manager Salary 1 17,000
Complaint Officer Salary 1 13,000
Salespersons Basic Salary 15 × Rs. 15,000 225,000
A/L - Labor * Wages 20 N/A
A/L - Skillman Basic Salary 4 × Rs. 5,000 20,000
H/O - Bottom Line Staff Salary 6 × Rs. 8,000 48,000
A/L - Bottom Line Staff Salary 4 × Rs. 8,000 32,000
Clerical Staff Salary 3 × Rs. 11,000 33,000
Total Monthly Salaries - - 656,000
Annual Salaries - - 7,872,000

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Plant & Equipment Schedule
Plant/Machine Each Item Cost Quantity Total Cost
Banana Cutter 50,000 2 100,000
Sterilizer 170,000 1 170,000
DryingMachine 100,000 2 200,000
FryingPlant 180,000 2 360,000
Evaporator 120,000 2 240,000
Maslala 35,000 2 70,000
Packing Machine 220,000 2 440,000
Racks to Stock 6,000 75 450,000
Total Plant& Machinery Cost - - 2,030,000
Office Equipments & Furniture Schedule
Particular Each Item Cost Quantity Total Cost
Computers 20,000 10 200,000
LaserPrinters 7,500 3 22,500
Lockers & Cupboards 5,000 20 100,000
Tables (for H/O) 1,700 15 25,500
Tables (for A/L) 2,700 20 54,000
Chairs (for H/O) 1,000 60 60,000
Chairs (for A/L) 650 40 26,000
Fixture (for H/O) - - 350,000
Fixture (for A/L) - - 150,000
Electric Equipments - - 25,000
Misc A/C(for H/O) - - 100,000
Misc A/C(for A/L) - - 50,000
Total Equipment Cost 1,163,000
Wages & Commission Schedule
Person Nature Amt (in Rupees)
Marketing Manager Commission 0.25/sold unit
Salespersons Commission 0.25/sold unit
Labor Wages 250/day
Skillman Wages 150/day

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Other Fixed Assets Schedule
MiniTrucks 870,000 1 870,000
Cultus Cars 870,000 2 1,740,000
A/L Generator 250,000 2 500,000
H/O Generator 250,000 1 250,000
Stock Carrier 8,500 10 85,000
Total Cost - - 3,445,000
Reserves for Operating Expenses Schedule (monthly)
Particular Amt (in Rupees)
A/L - Electricity Charges 120,000
A/L - Gas Charges 70,000
H/O - Electricity Charges 30,000
A/L - Generator Reserve 20,000
H/O - Generator Reserve 15,000
A/L - Building Rent 40,000
H/O - Building Rent 120,000
Office Maintenance Reserve 7,000
Plant Maintenance Reserve 5,000
EngineeringMaintenance Reserve 1,500
Transportation Reserve 30,000
Admin Operating Reserve 2,500
Total Operating Costs 461,000
Annual Operating Costs 5,532,000

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Promotional Budget (for 5 years)
Particular Each Item Cost Times Total Cost
Radio - Ad MakingExpenses 3,000 2 6,000
Cable - Ad Making Expenses 50,000 2 100,000
Radio - Regular Ad 7,000 60 420,000
Cable - Regular Ad 5,000 60 300,000
Pamphlets 5 500,000 2,500,000
Cloth Banners 30 2,000 60,000
Sign Board Flexes 1,500 250 375,000
Publicity - Bill / Vouchers 14 200,000 2,800,000
Calendars 35 50,000 1,750,000
Shopping Bags (printed) 5 500,000 2,500,000
Shirts 100 5,000 500,000
Spot Activity 15,000 50 750,000
Marketing Reserve - - 1,200,000
Total Budget 13,261,000

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Total Fixed Costs Details for Next Five Years
Remuneration Schedule (Monthly)
Person Nature Quantity Amt (in Rupees)
CEO/Chairman Allowance 1 12,000
Investor Allowance 1 12,000
Banker Allowance 1 12,000
Coordinator Allowance 1 12,000
Legal Advisor Allowance 1 12,000
Finance Manager Salary 1 45,000
Marketing Manager Basic Salary 1 35,000
Accountant Salary 1 22,000
Production Manager Salary 1 45,000
Quality Inspector Salary 1 25,000
HR Manager Salary 1 35,000
Asst. HR Manager Salary 2 × Rs. 25,000 50,000
Business Consultant Agency Fixed Fee 1 25,000
Law Firm Fixed Fee 1 15,000
Audit Firm Fixed Fee 1 10,000
Asst. Cost Manager Salary 1 20,000
Complaint Officer Salary 1 15,000
Salespersons Basic Salary 30 × Rs. 20,000 600,000
A/L - Labor * Wages 50 N/A
A/L - Skillman Basic Salary 10 × Rs. 6,000 60,000
H/O - Bottom Line Staff Salary 10 × Rs. 10,000 100,000
A/L - Bottom Line Staff Salary 10 × Rs. 10,000 100,000
Clerical Staff Salary 7 × Rs. 15,000 105,000
Total Monthly Salaries - - 1,367,000
Annual Salaries - - 16,404,000
New - Plant & Equipment Schedule
Plant/Machine Each Item Cost Quantity Total Cost
Banana Cutter 60,000 2 120,000
Sterilizer 180,000 1 180,000
DryingMachine 120,000 2 240,000
FryingPlant 200,000 3 600,000
Evaporator 130,000 2 260,000
Maslala 30,000 4 120,000
Packing Machine 230,000 4 920,000
Racks to Stock 7,500 100 750,000
Total Plant& Machinery Cost - - 3,190,000

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New - Office Equipments & Furniture Schedule
Computers 18,000 15 270,000
LaserPrinters 8,000 7 56,000
Lockers & Cupboards 5,500 25 137,500
Tables (for H/O) 2,000 10 20,000
Tables (for A/L) 3,000 50 150,000
Chairs (for H/O) 1,000 15 15,000
Chairs (for A/L) 700 80 56,000
Fixture (for H/O) - - 200,000
Fixture (for A/L) - - 150,000
Electric Equipments - - 25,000
Misc A/C(for H/O) - - 100,000
Misc A/C(for A/L) - - 50,000
Total Equipment Cost 1,229,500
Wages & Commission Schedule
Person Nature Amt (in Rupees)
Marketing Manager Commission 0.25/sold unit
Salespersons Commission 0.25/sold unit
Labor Wages 300/day
Skillman Wages 200/day
Other Fixed Assets Schedule
MiniTrucks 900,000 2 1,800,000
Cultus Cars 830,000 3 2,490,000
A/L Generator 300,000 2 600,000
Stock Career 10,000 15 150,000
Total Cost - - 5,040,000

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New - Reserves for Operating Expenses Schedule
(monthly)
Particular Amt (in Rupees)
A/L - Electricity Charges 150,000
A/L - Gas Charges 90,000
H/O - Electricity Charges 40,000
A/L - Generator Reserve 25,000
H/O - Generator Reserve 20,000
A/L - Building Rent 50,000
H/O - Building Rent 140,000
Office Maintenance Reserve 10,000
Plant Maintenance Reserve 12,000
EngineeringMaintenance Reserve 2,500
Transportation Reserve 60,000
Admin Operating Reserve 3,500
Total Operating Costs 603,000
Annual Operating Costs 7,236,000
Promotional Budget (for 5 years)
Particular Each Item Cost Times Total Cost
Radio - Ad MakingExpenses 17,000 2 34,000
Cable - Ad Making Expenses 1,050,000 1 1,050,000
Radio - Regular Ad 10,000 60 600,000
Cable - Regular Ad 6,500 60 390,000
Pamphlets 6 900,000 5,400,000
Cloth Banners 30 2,500 75,000
Sign Board Flexes 2,000 350 700,000
Publicity - Bill / Vouchers 17 500,000 8,500,000
Calendars 40 100,000 4,000,000
Shopping Bags (printed) 6 700,000 4,200,000
Shirts 120 7,500 900,000
Spot Activity 17,000 100 1,700,000
Marketing Reserve - - 12,451,000
Total Budget 40,000,000

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Total Product Cost for Initial Five Years
Product Variable Cost Schedule
Particular For Mini - Pack For Midi - Pack
Weight 30 Grams 65 Grams
Basic Raw Material 1.75 3.70
Banana Cutter Deptt. 0.00 0.00
Sterilizing Deptt. 0.70 1.90
Drying Deptt. 0.00 0.00
Frying Deptt. 1.00 1.70
Evaporating Deptt. 0.15 0.50
Masala's Deptt. 0.75 1.60
Packingto Packets 2.50 3.75
MasterPacking 0.50 1.00
Fixed Cost Reserve - FCR 1.00 1.00
Total Cost / per unit 9.35 16.15
Firm'sProfit 7.65 12.85
Trade Price (TP) 17.00 29.00
Retail Price (RP) 20.00 35.00
(All the given belowratios are calculated according to the (TP)
Total Cost Ratio 43.24% 48.79%
Contribution Margin Ratio 56.76% 51.21%
Profitability Ratio 45.00% 44.31%

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Total Product Cost for Next Five Years
New - Product Variable Cost Schedule
Particular For Mini - Pack For Midi - Pack For Bigi - Pack
Weight 30 Grams 65 Grams 100 Grams
Basic Raw Material 2.00 4.00 6.00
Banana Cutter Deptt. 0.00 0.00 0.00
Sterilizing Deptt. 0.50 1.75 2.00
Drying Deptt. 0.00 0.00 0.00
Frying Deptt. 1.15 2.15 2.75
Evaporating Deptt. 0.12 1.35 1.75
Masala's Deptt. 0.85 1.75 2.10
Packingto Packets 2.75 3.95 4.75
MasterPacking 0.65 1.15 2.15
Total Variable Cost 8.02 16.10 21.50
Carriage Expenses 0.50 0.50 0.50
Selling Commission 0.50 0.50 0.50
Fixed Cost Reserve - FCR 1.00 1.00 1.00
Total Cost / per unit 10.02 18.10 23.50
Firm'sProfit 6.98 10.90 18.50
Trade Price (TP) 17.00 29.00 42.00
Distributor Margin 1.50 3.00 4.00
Retailer Margin 1.50 3.00 4.00
Retail Price (RP) 20.00 35.00 50.00
(All the given below ratios are calculated according to the (TP)
Total Cost Ratio 47.18% 55.52% 51.19%
Contribution Margin Ratio 52.82% 44.48% 48.81%
Profitability Ratio 41.06% 37.59% 44.05%

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Questionnaire for the Concept Testing
A Concept Testing Survey’s by…
Frito’ Enterprisez
(Banana Crazee – A Taste of Nature)
- Are you student at which level…?
 School – Level
 College – Level
 University – Level
- The Age Interval…?
 10 years – 20 years
 More _______ (in years)
- Gender
 Male
 Female
- Are you…?
 Quality Conscious
 Price Conscious
 Brand Conscious
- Are you mentally prepared to adopt new trends of the market…?
 Yes
 No
- Are you mentally prepared to adopt new tastes / flavors which are available in the market…?
 Yes
 No
- Yours behavior towards the banana flavor is…?
 Positive
 Neutral
 Negative

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- If we will provide Banana in the shape of “CHIPS” to you, what will be yours response…?
 Positive
 Neutral
 Negative
- If the general market provides you “Banana Chips” you will purchase it…?
 Yes
 No
- How many grams “Banana Chips” you will eat within a day…?
 25 grams
 50 grams
 75 grams
 100 grams
- If we will provide “Banana Chips” to you on the reasonable prices, then what will be yours purchasing
behavior…?
 Rarely Purchase
 Frequently Purchase
 Mostly Purchase
- You will provide feedback to us by tasting the product of “Banana Chips”…?
 Yes
 No
Thanks for yours kind co-operation…?
THE END……..!

Business-Proposal-Banana-Chips

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