This report consists of a comprehensive analysis of developing a Business Plan from the idea generation to the execution of Business operation. The Business Plan was developed for the "Entrepreneurship" Module during the 4th semester of the Transport and Logistics Management Degree Program at University of Moratuwa.

2. 1

3. 2
CONTENTS
1. Introduction ………………………………………………………….……………………3
2. Team Profiles……………………………………………………………………...…...….4
3. Opportunity Identification…………………………………………………………...…... 8
4. Generated Business Ideas and Idea Screening…………………………...……………....10
5. Company Description………………………...………………………………………….16
6. Marketing Plan…………………………………………………………………………...21
7. Operational Plan………….………………………………………………………….…...34
8. Management and Organization……………………………………………….………….36
9. Financial Plan…………………………….……………………………………….…..….37
10. Appendix…………………………………………………………………………………40

4. 3
INTRODUCTION
This report consists of a compressive analysis of developing a Business Plan from the idea
generation to the execution of Business operation. The main objective of developing a business
plan is to deliver the value proposition of the business idea in a systematic way in order to be
understood by its potential stakeholders. The act of planning helps to think through different
aspects of a business idea thoroughly, study and research in order to look at the ideas critically.
As the initial step, the opportunities prevail in the current environment was identified and
business ideas were generated to cater the identified opportunities. Then the identified business
ideas were screened using both qualitative and quantitative methods to recognize the best option.
Then the business plan was developed for the identified business idea. The business plan consists
of thorough analysis of the Marketing plan, Operational Plan, Management and Organization and
a Financial Plan.
This report provides clear idea about the operations and the future of the Business idea to any
party that is interested.

5. 4
TEAM PROFILES
Hashan Rahubaddha (141456X)
Academic and Professional Qualifications
 Third year Undergraduate Majoring Transport and Logistics Management
 Member of Chartered Institute of Logistics and Transport Sri Lanka
 Member of Chartered Institute of Marketing (UK)
Experience
 Summer Intern - John Keells Holdings PLC, Ceylon Tobacco Company PLC,
Commercial Bank of Ceylon PLC
 SPARKS Student Ambassador – Unilever Sri Lanka
 LEaD Supply Chain Intern – Unilever Sri Lanka
 1ST
Runner-Up HSBC – British Council Young Entrepreneurship Award 2015
Skills
 Team work
 Analytical Skills
 Leadership
 Marketing

6. 5
Yasoda Gamage (141419M)
Academic and Professional Qualifications
 Third year Undergraduate Majoring Transport and Logistics Management
 Member of Chartered Institute of Logistics and Transport Sri Lanka
 Member of Chartered Institute of Management Accounting (UK)
Experience
 Core Committee Member – Young Professionals Forum – Chartered Institute of Logistics
and Transport Sri Lanka
 LEaD Supply Chain Intern – Unilever Sri Lanka
Skills
 Analytical Skills
 Leadership
 Creative Designing
 Teamwork

7. 6
Pavani Diyawadena (141412K)
Academic and Professional Qualifications
 Third year Undergraduate Majoring Transport and Logistics Management
 Member of Chartered Institute of Logistics and Transport Sri Lanka
 Member of Chartered Institute of Management Accounting (UK)
 Foundation Diploma in Food Science and Technology
Experience
 Works at LED MORA as a content writer
 Member of Institutional Relationships pillar at MoraSpirit
Skills
 Negotiation Skills
 Culinary Skills
 Team work
 Creative Writing

8. 7
Thakshal Ekanayake (141414T)
Academic and Professional Qualifications
 Third year Undergraduate Majoring Transport and Logistics Management
 Member of Chartered Institute of Logistics and Transport Sri Lanka
Experience
 Active member of MoraSpirit Marketing pillar.
 Logistics Team member of the Organizing committee of Mora Hockey 7s
Skills
 Planning and organizing skills
 Systematic and Logical auctioning
 Problem Solving
 Teamwork

9. 8
OPPORTUNITY IDENTIFICATION
Healthy Lifestyle is a growing concern among public in the modern world. Due to the busy lifestyle
of people which is mainly driven by the technology people have less time to pay attention to their
Health. The situation in the Sri Lankan Community is no different.
According to recent findings scientists have discovered that people in south Asian region including
Sri Lanka have a higher risk in facing heart diseases at an early stage than any others. This risk is
4 times greater than the general population. So, this has become a crucial issue at present.
According to the statistics of World Health Organization - Noncommunicable Diseases (NCD)
Country Profiles, 2014 – Sri Lanka, around 75% of Total Deaths of the country per year is due to
Non-Communicable diseases such as Cancers, Diabetes, Cardiovascular Diseases and Chronic
Respiratory Diseases.

10. 9
This has become a serious issue in the country and people are now taking various measures to
ensure a Healthy Lifestyle.
To prevent from NCDs Health Professionals recommend
 To engage in Physical exercises daily
 Ensure mental health by engaging in Yoga, Meditation etc.
 Eat fresh, healthy food with no added chemicals
 Keep track on the daily diet patterns and exercises in order to measure daily intake of
calories and vitamins
In this environment, businesses which address the Health Concerns of Public have a higher
demand.
Refer the Appendix 2.

11. 10
GENERATED IDEAS
Team Naturella generated four business ideas based on the opportunity of growing health
concern of the public. The four ideas were screened using SWOT Analysis and a Score card
method to identify the best option.
1. Healthcare and fitness app
The first business idea was to develop a Mobile Application which will help the users to track
and record workouts, measure the amount of calorie burnt, measure the nutritional value of food
taken in and provide information on healthy food.
Strengths
 Results oriented team
 Technical knowledge of
developing simple apps
 Knowledge of handling
Finance
Weakness
 Lack of technical
knowledge to develop
advanced mobile
application
 High cost of developing
mobile applications
Opportunities
 Increased usage of Mobile
applications to organize day
to day life activities
 Growing health concern of
Public
 Lack of legal barriers to
launch an mobile application
Threats
 People from all the age
groups are not familiar
with mobile
applications. Only the
young will be benefitted.
 Lack of trust on mobile
applications

12. 11
2. Initiating a Fitness Center
As a response to the medical advices of keeping physical fitness by regularly exercising, high
demand for Fitness centers can be predicted. Therefore the next business idea was to initiate
a Physical Fitness Center which provides service for both men and women. The center can
provide service for physical training on a Membership basis.
Strengths
 Results oriented team
 Large Network of Young
people known by Team
members who would be willing
to join a fitness center
Weakness
 Lack of technical knowledge
about training techniques and
equipment.
 High initial capital cost of
setting up fitness machinery.
 Lack of a facility to initiate the
Center
 Lack of skilled trainers
Opportunities
 Growing Demand for Fitness
centers
 Social Status gained by
being a member of a Fitness
center
 Stable Market demand due to
proven results by Fitness
centers for the past years.
Threats
 Legal barrier to initiate the
center.
 Potential competition from a
larger well establish fitness
centers

13. 12
3. Vertical Home Garden System
One of the main reasons for elevating No Communicable diseases among people is consuming
fruits and vegetables which are grown using toxic pesticides and fertilizers. Therefore, health
professional advice people to grow their own fruits and vegetables in the Gardens.
But with the limited space available in the urban homes, people need alternative method to grow
their fruits and Vegetables over traditional gardening methods. As a solution to this, third
business idea generated was Vertical Home Gardening system. The main business activity is to
sell vertical gardening containers and systems for growing a lot of plants in a minimum of space.
Strengths
 Results oriented team
 Low cost associated with pots
and other gardening materials
 Gardening skill possessed by
team members
Weakness
 Lack of Professional
Gardening Knowledge
 Lack of a facility to install the
store.
 Lack of workforce.
Opportunities
 Increased trend in storied
houses with balconies where
vertical gardening is ideal.
 Availability of fertilizers
other materials required at a
lower price
Threats
 Limited target group (Only
people who do not have
space for Gardening)
 Lack of Interest toward s
Gardening

14. 13
4. Organic Condiment Food
Condiment food has become very popular as being served on side of many dishes. But majority
of available condiment food in the market are unhealthy since they are made of artificial
ingredients. By identifying the health concerns related to organic food, the final business idea
generated was to produce healthy condiment food items using Organic ingredients.
Strengths
 Results oriented team
 Contacts of farmers who grow
organic crops.
 Expert culinary skills possessed
by a team member for in house
Manufacturing of food items
Weakness
 Lack of knowledge about
Machinery operation for large
scale manufacturing
Opportunities
 Growing trend of consuming
organic food
 Indigenous knowledge of
farmers to grow organic
crops
 Diverse climate in the
country which favors organic
crops
Threats
 Limited target group (High
income earning group due to
high price)
 Lack of knowledge about
organic food
 Stable attitude among
customers that all condiment
food items are adverse for
health

15. 14
By looking at the SWOT analysis, a general idea about the feasibility of each business idea can
be obtained. To further analyze to identify the best option, a score card model was adopted.
The scores are assigned in such a way that the idea with highest score for the attributes will be
chosen. (High score for favorability of the attribute)
Attributes to consider when assessing the feasibility of business idea
1. Technological knowledge required
5-Very low 4- Low 3-Moderate 2- High 1-Very High
2. Capital Requirement
5-Very low 4- Low 3-Moderate 2- High 1-Very High
3. Effect on identified opportunity
1-Very low 2- Low 3-Moderate 4- High 5-Very High
4. Effect of competitors
5-Very low 4- Low 3-Moderate 2- High 1-Very High
5. Profitability
1-Very low 2- Low 3-Moderate 4- High 5-Very High
6. Legal Barriers
5-Very low 4- Low 3-Moderate 2- High 1-Very High
7. Sustainability
1-Very low 2- Low 3-Moderate 4- High 5-Very High
8. Taxation and other Economic Barriers
5-Very low 4- Low 3-Moderate 2- High 1-Very High

16. 15
Idea 1 -
Healthcare
and fitness
app
Idea 2-
Initiating a
Fitness
Center
Idea 3 -
Vertical
Home
Garden
System
Idea 4 -
Organic
Condiment
Food
1. Technological
knowledge
required
1 1 3 4
2 Capital
Requirement
2 1 3 3
3 Effect on
identified
opportunity
3 4 2 4
4 Effect of
competitors
1 2 2 4
5
Profitability 3 3 2 5
6 Legal Barriers 4 2 5 4
7 Sustainability
2 4 5 5
8 Taxation and other
Economic Barriers 2 2 4 3
Total Score 18 19 26 32
By analyzing the Score card result and the SWOT analysis, it is clear that with the available
resources and considering costs and benefits, Business Idea 4 – Manufacturing organic
Condiment food products in the best available option.
SELECTED BUSINESS IDEA
Manufacturing Healthy Condiment Food using Organic Ingredients

17. 16
COMPANY DESCRIPTION
What made us, Naturella?
In the middle of the day you feel a bit hungry and maybe you are bit lazy to make a meal on your
own. Imagine you go to a fast food outlet and buy a meal or you make pasta or a delicious fried
rice at home. If you continue this for another few years, obviously, you will end up suffering from
cholesterol or heart disease.
According to recent findings scientists have discovered that people in south Asian region including
Sri Lanka have a higher risk in facing heart diseases at an early stage than any others. This risk is
4 times greater than the general population. So, this has become a crucial issue at present.
As we know there are many types of junks foods, fast foods, instant foods. But there is one thing
constant with all these types That is the “complimentary food” given in form either a sauce a
spread or a chili paste, which contains 100% artificial ingredients with zero nutritious value only
to add a flavor.
This particular matter led us to identify the opportunity to invent something
different…healthy…and better……...
Naturella, a condiment food product which contains 100% natural ingredients with
scientifically proven ability to control bad cholesterol and heart diseases.

18. 17
VISION
To become the market leaders in condiment food industry with
the goal of changing taste to a healthy taste.
MISSION
To unlock the potential of nature to improve the quality of life.

19. 18
Company Goals
1. Improve customer satisfaction through Nutrition, Health and Wellness
2. Establish brand awareness and expand products or service lines.
3. Sustainable Financial Performance
4. Trust by all stakeholders
Company Philosophy
Safety first…including proper food handling and sanitation.
Food is next…including nutrients, healthiness, freshness, appeal, and variety.
Service and excitement…with speed, friendliness, and consistency.
Liberty is committed to responding to suggestions, concerns, and complaints promptly and with
all due considerations.
Our success is defined by serving people and improving their daily life style through healthier,
Nutritious and complementary food items.
Naturella would be operation in a niche market, high end urban customers being the target
customers the market strategies would be including online marketing, e marketing, social media
campaigns at the first place and gradually would be developing itself to point of sale marketing
promotions at the supermarkets as well other organic markets like Saraketha and Good Market.
The industry that Naturella operating is a growing industry and Sri Lankans still catching up with
the organic and nutritious food style while the rural become urban at the same time meaning more
and more customer base for the natural, organic, nutritious and healthy food.
Specifically regarding to the complementary food items the market still yet to flourish and get
closer to the customers as still most of the companies and restaurants are focused upon main food
items rather than the complementary food items that served along with it.
In the long term observing the global environment, the organic and nutritious food life style soon
to be followed by the mass crowd. So, the industry Naturella operating in is a growing and a long-
term industry which presents enormous potential if the rightful technological advances integrated.
The major benefit or the core competency of the business or the company is the ability to penetrate
the market through the outstanding and one of a kind marketing campaigns with a shareholder who
has won couple of business competitions and another one who has won many designing
competitions and done designing for multinational companies like Unilever, the Naturella holds
the upper hand in marketing itself as a healthy, nutritious and 100% natural and organic product
to capture the targeted market. The strengths and the weaknesses of the company would as be
following.

20. 19
Strengths
 Results oriented team
 Contacts of farmers who grow
organic crops.
 Expert culinary skills possessed by
a team member for in house
Manufacturing of food items
 Logistics knowledge that helps to
run the business effectively and
efficiently.
Weakness
 Lack of knowledge about
Machinery operation for large
scale manufacturing
Opportunities
 Growing trend of consuming
organic food
 Indigenous knowledge of
farmers to grow organic
crops
 Diverse climate in the
country which favors organic
crops
Threats
 Limited target group (High
income earning group due to
high price)
 Lack of knowledge about
organic food
 Stable attitude among
customers that all condiment
food items are adverse for
health

21. 20
Once the operation begins the company will be registered as a “Private Limited Company” with a
liability limited to its assets. The company will be registered under the name of “Naturella Organic
Foods (Pvt) Ltd. The company will be registered at the Department of the registrar General of
Companies.
The directors of the company would be the four founders while there’s a chance of adding another
post of director if there’s a venture capital investor. The dividends of the profits would be shared
among the shareholders according to the pre-agreed terms that will all be included in the
registration form.

22. 21
MARKETING PLAN
A detailed Marketing plan is essential when articulating a Business Plan. Before developing the
market plan for the product, the market that will be offered need to be evaluated critically.
1. Market Research
The initial step of situational analysis is identifying the existing Market and the environmental
analysis. For that a Market research was conducted to find the Market condition for Organic
Chilli Paste.
1.1 Observation
Leading Supermarket store was visited in order to identify the available competitive products in
the market. Through these 6 main competitors were identified and their characteristics were
analyzed.
Product Brand Net Weight Price
Dadd’s 350g LKR 460
McCurry 200g LKR 325

23. 22
Kist 325g LKR 380
Zensai 300g LKR 495
Schezuan 350g LKR 470
Happy
Home
150g LKR 320

24. 23
By observing the characteristics of the competitors, it is clear that majority of the products have
the same ingredients and the same type of packaging in the Glass bottles. Only one product
(‘Happy Home’) among the identified 6 competitors has a different packaging and a less weight.
All the other products weigh at a range of 200g- 400g and cost at a range of LKR 300- LKR 400.
These common competitor Characteristics should be considered when deciding the Marketing
Mix of the product.
1.2 Personal Interviews
Randomly selected samples of 10 consumers were interviewed to identify their reasons for
buying organic food and preferences.
As a whole it was indicated that many consumers purchase organic foods because of the
perceived health and nutrition benefits of organic products.
As Identified in the research, the main reasons consumers purchased organic foods were
 For the avoidance of pesticides (70%)
 For freshness (68%)
 For health and nutrition (67%)
 To avoid genetically modified foods (55%).
18% of consumers did not know what Organic food exactly means but still tend to buy them
since it was mentioned in the label that it is healthier.
4% of consumers had no clue about the organic food and never tend to buy them specially.
By considering the above facts, it can be concluded that majority of the consumers has
knowledge about Organic food but has no clear idea about its importance and benefits.
Therefore, Marketing of NATURELLA should be based on creating awareness among
consumers about the organic food and convince them to buy it by emphasizing the benefits.
Refer the Appendix 1 for the questionnaire.

25. 24
2. PEST Analysis
Political
 4 billion Financial Assistance from Government for the developemnt of Small and
Medium scale Enterprises
 Refining policy Framework for SME.
 Government Promotions on Organic Products
 Government incentives for farmers who grow Organic crops.
Economic
 Growth of demand for rganic Products both localy and internationaly
 International Certification agencies operating in the country to provide third party
certifications for organic food manufacturers
Social
 Growing concerns on health and nutrional food.
 Growing concerns among farmers to grow organic crops
 Indegenous knowledge of farmers about sustainable agriculture.
Technological
 Technologically advanced machinery that will help to create a production so efficient and
effective.
 New research and product developments coming up every day in the food industry.

26. 25
3. Market Segmentation
Source: Household Income and Expenditure Survey, Department of Senses and Statistics, Ministry of Finance and
Planning 2012/2013 [Aug 2014]
The product is targeted on a niche market of High Income earning urban families. Toxiacted
products are mostly consumed by this group of people and there is growing concern about living
healthy lifestyle by consuming nutritional food among the group. Also consuming organic
products always comes at a price since cultivation of organic crops is costly when compared to
traditional cultivation.
4. Positioning
Position of Naturella in the Condiment Food Market
Low Income Families
(20%)
Average Monthly Income
LKR 10245
Middle Income Families
(60%)
Average Monthly Income
LKR 32595
High Income Families
(20%)
Average Monthly Income
LKR 121,368
Target Group Urban
Rural
High Price
Low Price
Low
Differentiation
High
Differentiation

27. 26
5. Marketing Mix
A specific set of tools which form a Marketing strategy is required to serve the identified Target
Group. These tools are discussed as the Marketing mix which describe the strategy of proving
right product or a combination thereof in the place, at the right time, and at the right price to the
customers.
5.1 Product
NATURELLA is a brand which is produced using 100% organic Ingredients. The main focus
group of food items under brand is condiment food.
Definition of Condiment food by American Heart Association [2015]
A food product that is added to other foods to impart a particular flavor, enhance flavor or
complement the dish. It may be applied by the diner or added prior to serving.
Examples of Condiment food items:
 Chutney
 Sauce
 Salsa
 Ketchup
 Mayonnaise
 Chinese chili Paste etc.
The traditional Condiment food items available in the Sri Lankan Market are high in sodium,
added sugars and/or saturated and trans-fats. Therefore, Health Professionals advice consumers
to use them sparingly, served on the side for the diner to apply, or substituted with healthier
alternatives.
That is where NATURELLA comes into play. It is an organic food items which is a healthier
alternative to condiment food available in the Market.
According to United States Department of Agriculture, organic foods as products grown without
the use of pesticides, synthetic fertilizers, sewage sludge, or genetically modified organisms.
Naturella is produced with 100% organic ingredients which are grown in the organically certified
small scale farmers in the provinces.
5.1.1 Product line
At the initial phase, only one product line will be introduced to the market. By considering
production feasibility and the capital requirement (Which will be discussed later on the report),
the selected product line is ‘ORGANIC CHILI PASTE’

28. 27
It is a savory spread basically produced using red chilies. Chili paste is a popular condiment food
among Sri Lankans which is used on the side of any Chinese dish (Rice, Noodles, Pasta etc.) and
as a spread with Bread, Roti etc.
The main specification of the product line is being produced using organic Ingredients and it
itself act as the competitive advantage of the product.
With the expansion of the scope of the Business, new product lines such as ‘ORGANIC
KETCHUP’, ‘ORGANIC CHUTNEY’ and ‘ORGANIC PICKLE’ will be introduced under
the same brand name ‘NATURELLA’.
Ingredients:
Organic Dried Chilies
Organic Garlic Cloves
Organic Ginger
Bitter Gourd
Sugar
Vegetable oil
Soy Sauce
Salt

29. 28
6.1.2 Brand Name
Few factors were considered while selecting the Band name NATURELLA for the new business
idea.
 Help position the brand in the mind of the consumer – The name NATURELLA is a
self-explanatory brand name which depicts the value of using Natural ingredients in
the products. This will help the customers to identify the core competitive advantage
of the product just by looking at the brand name.
 Flexibility for future product development – Even though at the initial phase only
CHILI PASTE will be introduced to the market, new organic condiment products
will be introduced as the business expands. The brand name NATURELLA is a
generic but a unique name which will not be a restriction for future product
development.
 No language restrictions – In future if the business was in a scope of exporting the
products, the Brand name NATURELLA’ will not be a barrier since it is not using
the Native Sri Lankan Language.
6. 1.3 Packaging
Since the main concern of the brand is to provide healthy food to its consumers its packaging
should not harm the nutritional value of the product. To ensure the social responsibility towards
environmental sustainability, the packaging should be selected carefully.

30. 29
Hence a Glass mason jar with a paper label was selected to store the content.
Glass packaging against other forms of packaging has the capability to withstand extreme heat
and cold enabling glass to prevent any reaction with the content it holds while maintaining its
freshness and durability. [‘Believers in Glass’; Social Movement, Press conference, January
2017]
In contrast to the packaging of competitor products, this jar is short in height with a wide
opening. Due to this shape, it can be directly served to the table without using another dish. By
serving the jar as it is, it will self-promote the product since whenever it served on the table
people will notice the brand name along with the taste.
Stock Keeping Unit – Initially only 200g jars will be put out to the market. As the Business
expands, Sachet packets will be made available
6.1.4 Labeling
The label of the packaging plays a vital role in the product since the main competitive advantage
of the product is its content. Therefore, Label need to clearly mention the content is 100%
organic.
According to the Market survey conducted, many consumers tend to buy organic products since
the label mentioned that it is healthier even though they had no idea about organic food. This
concludes that effective label can significantly increase sales.

31. 30
5.2 Price
The target Customer Group of the product line is Higher Income Families. Therefore,
NATURELLA is a high-end product. Therefore, Pricing strategy that will be followed by the
product line will be Value based Pricing which is pricing based on the buyer’s perception of
value). The buyer’s perception depends on all aspects of the product, including non-price factors
such as quality, healthfulness, and prestige.
By comparing the price charged by current major competitors, a price for NATURELLA
ORGANIC CHILI PASTE can be decided while considering the value delivery of Naturella.
By adopting value based pricing strategy, comparatively higher price will be charged from
NATURELLA since the core value of the product which is Healthfulness and using organic
ingredients come at a significant cost. This will ensure the faith of consumers that the products
are truly organic since organic ingredients cost considerably higher than ingredients with
chemicals.
Since the customers expect this price range from organic products, there will not be a significant
effect on the sales volume due to the higher price.
Initially the product will only focus on the Business-to-consumer market. Therefore, only the
200g SKU will be available. But as the business expands Sachet Packets too will be available.
Sachet SKU price will be determined based on the demand.
Price of NATURELLA ORGANIC CHILI PASTE (200g)
LKR 550.00

32. 31
5.3 Place
NATURELLA Organic Chili Paste targets on High end customers. It will operate in Business-to-
Consumer Market. Therefore, push strategy is applied to make the product available closer to
the end consumer.
The main Distribution channel will be through the Supermarkets.
Apart from the Supermarkets, the main target distribution location is ‘SARAKETHA
ORGANICS, which is a certified organic retail store.
SARAKETHA ORGANICS has a solid customer base and is ideal for the requirement of
Naturella to serve for the High-end customers. But I only buy dedicated third party certified
organic products to its store. To obtain certification the production need to go through strict
testing for 6 months.
Therefore, at the Initial Phase only Supermarkets will be targeted.
As a step Forward, NATURELLA can be made available in the online store KAPRUKA for for
consumers who prefer internet shopping. Since most of the competitor products also operate their
distribution network in this scope, it is essential to reach the online marketing stores.
Production Supermarkets End consumer

33. 32
Distribution
As the target customer group is High Income earning urban families; the product should be
available in the Supermarkets in the urban areas. Since the production will be carried out at a
location closer to Colombo, at the initial phase the super markets in the main cities of Colombo
District will be focused. Supply of Finished products will be carried out by Distribution vehicle
of Naturella.
5.4 Promotion
The promotional mix of NATURELLA will mainly focus on Social Marketing. Health Benefits
of using organic products can be used as a strong tool in marketing.
To create awareness about the product and its benefits social media will be the most efficient and
cost effective option.

34. 33
 Facebook fan page for NATURELLA
 Frequent updates about the promotions, offers and the new products
 Campaigns to create awareness about the Organic food
 Post videos to create awareness about Organic Food
 Cooking lessons of different food items that can be made using
NATURELLA ORGANIC CHILI PASTE
 Post images of the Product regularly with a hashtag
 Create awareness about the Organic Food
Benchmarking the online marketing campaigns of successful companies is important in order to
gain a competitive advantage
Onstore promotions is another effective promotional startegy for NATURELLA. The Customers
can be given the opportunity to taste the Sandwitches made with NATURELLA ORGANIC
CHILLI PASTE as a spread. And offers can be given for customers who are willing to buy the
product.

35. 34
OPERATIONAL PLAN
1. PRODUCTION
 Production techniques
Production will take place in house at 147, Welipillawa, Ganemulla. at a private residence of Ms.
Pavani Diyawadana, a founding member of the company. The costs of the production will be
mainly the fixed costs that needs to be paid for the special machinery that’re needed to produce
“Naturella” with a higher quality.
The below figure is the unit operation of production technique of Naturella.
 Quality control
To keep the quality of the product and brand it as a natural and healthy “Naturella needs to have
the credibility and approval of an organization. Prior to that Naturella will be tested in the
Department of food science and technology, University of Sri Jayawardanapura to get the results
of its nutrient content and it will be continuously improved to maintain the quality of the product
as the target customers are high end and they expect the product be up to the highest quality.
The operations will happen adhering to the rules and regulations of the food act, No. 26 of 1980 as
amended by Food (Amendment) Act, No.20 of the 1991. Further the company will take the fullest
measures to obtain SLS standard followed by the ISO 22000-International Standard for Food &
Safety followed by ISO 9000 and ISO 14000 and ISO 26000 if the company is exporting the
products. These standards will be achieved in the long run. In the short run the proper sanitary
methods and quality raw material will be procured from the farmers who don’t use chemicals but
rather grow the crops organically to ensure Naturella gives the customers what it promises.
 Customer service
Raw
ingredients of
chili past
Mechanical
separation
(Blending)
Preservation
(Cooking)
Final ProductLiquefied
Chili Paste
Procurement
of Raw
material from
the organic
farmers

36. 35
Customer hotline will be added at the initial stage it will be answered by the founders, and with
expansion of the business, after 6 months and building a considerable customer base it is planned
to employee a telephone operator on pay roll to answer the questions and inquiries from the
customers.
 Inventory control
The company has a separate Director for the logistics who will oversee this department. At the
initial stages (1st
six months) the inventory will be kept at minimum and to gain the economies of
scale one batch will be produce one every two weeks to cater to the market. Since the product is
dry but yet not using any artificial ingredients that will increase the shelf life the inventory has to
be kept at a minimum. The inventory method Naturella adopting for the first 6 months would be
“Just in Time” which will reduce the inventory cost. But after the first 6 months and with the
expansion a new factory will be built or rented and the products and raw material will be kept under
the best temperature levels that’s suitable for the specific occasion.
 Product development
Naturella is open to new innovation and continuous product development. Since the main
selling point of Naturella is to create a healthy, tasty, nutritious experience for the customer
it will engage in many product development processes. At the beginning since the capital
is an issue the help from the Department of food science and technology, University of Sri
Jayewardenepura will be sought out to measure the nutrient level and to create a e non-
hazardous and non-allergic product for the customers. The various samples with the recipe
being changed will be sent out to University of Sri Jayewardenepura to be checked. After
gaining the financial stability Naturella is hoping to outsource its research arm to the iti
(industrial technology institute) to develop its product with different flavors and aiming to
reduce the high blood sugar level and cholesterol level.
Other than the core product, the marketing, bottling, labelling and designing will also
develop along the way with the help of market researches.
After one year of operation producing chili paste Naturella Organic Foods (Pvt) Ltd is
hoping to enter in to the other complimentary food item industry such as Sause, spreads
etc. All these depends on the research and product development. So, after achieving the
financial stability Naturella will employ a separate food scientist for this purpose and will
also establish a product development department in the company.

37. 36
MANAGEMENT AND ORGANIZATION
The Management team of Naturella comprises of four competent Undergraduates of University
of Moratuwa. Unique combination of skills in the team will lead path to the success of the
Business Idea. Each member in the team will be responsible for a specific function in the
Business process.
HASHAN RAHUBADDHA – MARKETING
THAKSHAL EKANAYAKE – LOGISTICS
YASODA GAMAGE – FINANCE
PAVANI DIYAWADANE – PRODUCTION
Hashan who has won several Business Competitions, is a well
experienced and a skillful Individual in the field of Marketing. He
is responsible for delivering the value proposition of Naturella to its
customers and developing marketing plans that align with the
business' strategy.
Logistics is the heart of any business as it is the means by which
products are reached to the customers. Thakshal who possess
excellent planning skills, is responsible for procurement, tock
Control, warehousing and distribution of goods. He will ensure that
the right products are delivered to the right location on time and at a
good cost.
Yasoda who is a member of Charted Institute of Management
Accounting (UK), has the required knowledge to ensure the
financial health of the Organization. She will be responsible in
preparing financial reports and developing strategies and plans for
long term and short term financial goals.
The core Business activity of Naturella, production of Organic food
is in the hands of Pavani. She has excellent culinary skills which
she inherited from her family and prepares the food items for
Naturella according to her own unique recipes. She will be
responsible for planning production in order to satisfy the customer
requirements.

38. 37
FINANCIAL PLAN
As any other Business organization, main goal of Naturella is to maximize profit. To analyses
the profitability and success of the Business, Financial Analysis is crucial.
Sales will be carried out only to the supermarkets in the major cities of Colombo district in the
first six months which is the first phase of the business.
Therefore, financial Analysis was carried out using projected Financial Statement of six months’
period.
Projected Income Statement for 6 months from 31st March 2017 to 31st September 2017
LKR
Sales 8,580,000
Cost of Sales (6864000)
Gross profit 1716000
Admin. Expenses (24500)
Marketing Expenses (56700)
Registration fees (15000)
Electricity (121300)
Water (13460)
Loan Interest (12000)
Distribution Expenses (2113400)
Salary (288000)
Total Expenses 2644360
Net Profit 1259640

39. 38
Projected Balance Sheet for 6 months from 31st March 2017 to 31st September 2017
Fixed Assets LKR LKR
Food Dehydrator 94000
Commercial Grinder 260000
354000
Current Assets
Trade receivables 374200
Inventory 1387000
Cash in hand 127500 1888700
Total Assets 2242700
Equity
Capital 200000
Retained Earnings 1259640 1459640
Non- Current Liabilities
Bank Loan 300000
Current Liabilities 483060 783060
Total Liabilities 2242700

40. 39
Breakeven Analysis
Indirect Costs Direct Costs
Admin. Expenses 24500
Marketing Expenses 56700
Registration fees 15000
Electricity 121300
Water 13460
Loan Interest 12000
Salary 288000
Total Indirect Cost 530960
No of Units sold - 2600 x 6 =15600 units
Average Sales price per unit – LKR 550
Direct cost per unit - LKR 575.47
Indirect cost per unit - LKR- 34.03
Total cost per unit - LKR 679.77
Breakeven Point = Fixed Cost/ (Unit Price-Variable cost per unit)
= 897400/ (575-550)
= 23600 units.
This shows that it will take more than six months for the company to surpass the breakeven
point.
Cost of Sales 6864000
Distribution Expenses 2113400
Total Direct Cost 8977400

41. 40
APPENDIX 1
Questionnaire
Survey on manufacturing healthy condiment food using organic ingredients
Thank-you for helping complete our survey! The purpose of our research is to try and understand
how individuals are changing their purchasing behavior as it relates to organic food. The results
will be analyzed and used as part of our undergraduate program. Your anonymity is absolutely
guaranteed.
Gender: Male Female
Age: Under 18 18-25 26-35 36-45 46-59
60-70 70+
1. Are you familiar with the term ‘organic food’?
Yes No
2. Do you specifically ask for organic food in the store or it’s just a random choice?
Yes No
3. What is your approximate monthly household income?
Less than 50,000 50,000-100,000
More than 100,000
4. Why would you buy organic foods? (put numbers according o the priority)
a. For the avoidance of pesticides
b. For freshness
c. For health and nutrition
d. To avoid genetically modified foods
5. What are the facts you focus on buying organic foods? (Put numbers according to the
priority)
a. Price
b. Ingredients
c. Brand
d. Status

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6. How often do you purchase organic foods?
Daily weekly monthly
7. Which of the following types of organic food do you purchase? select all that apply.
Fruits and vegetables Nuts and seeds Dairy products
Packaged goods Other
8. For each of the following statements, please indicate your opinion by circling one of
the numbers on the scale where
1 = Strongly Disagree 4 = Strongly Agree.
Thank You!
Strongly
Disagree Disagree Agree
Strongly
Agree
I usually make an attempt to
have a well-balanced diet
1
2
3
4
I would be willing to visit
several different stores,
specifically to purchase organic
food
1 2 3 4
I think organic food is of higher
quality than conventional food
1 2 3 4
I view organic food as a status
symbol
1 2 3 4
I associate organic food with a
affluent lifestyle
1 2 3 4
I don’t mind paying more for
organic food
1 2 3 4
Organic food labelling gives
me a feeling of trust
1 2 3 4
I plan to increase the amount of
organic food I purchase
1 2 3 4

43. 42
APPENDIX 2
Sri Lanka Non-Communicable Decease Report.

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