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PROJEC T
REPORT
ON
MANGO
SOFTDRINK
3
Guided by
Dr. ASHIK MAHAPATRA
Project coordinator
4
AcknowledgemAcknowledgem
entent
We avail this opportunity to profound our hearty
thanks to all those who individually as well as
collectively helped us in the successful completion of
this project works.
We would like to express our immense gratitude
and sincere thanks to Mr ASHIK MAHAPATRA
( H.O.D. Dept. Of MECH ), whose co-operative
guidance has helped us in successful completion of this
Project on “Mango Soft drink”.
Finally We would like to extend our sincere
thanks to the entire faculty in Dept. of M.B.A for their
valuable and scholarly guidance, constant supervision
and timely advice and non-teaching staff of M.B.A
Dept. and our friends without whom our endeavor
wouldn’t have been successful.
ASHIK MAHAPATRA
5
CERTIFICACERTIFICA
TETE
This is to certify that Ashik Mahapatra are bona fide
students of final year, 8th semester, Department of MECH, TAT.
This project report on “MANGO SOFT DRINK” is
presented successfully in partial fulfillment of the requirement for
the award of the “Bachelor Degree Of Technology”, in
Mechanical Engineering from B.P.U.T., Orissa under our
guidance and supervision during the session 2012-2015.
Mechanical Engineering
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TABLE OF CONTENTS
1. Chapter 1
• Market Analysis of Coca-Cola & Pepsi
 Coke Vs Pepsi …………………………
17
 Price …………………………………
23
 Place …………………………………
25
 Promotion ……………………………
27
2. Chapter 2
• Proposed Project Details
 Area of Operation ………………………
32
 Location …………………………………
32
 Target Segment ………………………...
33
 Manufacturing Process …………………
36
 Machinery Required ……………………
41
 Packaging ………………………………
41
 Price ……………………………………
42
 Promotion ………………………………
42
 Distribution Channel
…………………...46
8
 Feasibility Analysis
…………………….46
 Competitive Advantage ………………...
49
 Conclusion ……………………………
50
9
CHAPTER
1
Market
Analysis
10
MARKET ANALYSIS OF COCA-
COLA & PEPSI
Coke
The Coca-Cola formula is The Coca-Cola Company's secret recipe
for Coca-Cola. As a publicity marketing strategy started by Robert
W. Woodruff, the company presents the formula as one of the most
closely held trade secrets ever and only a few employees know or
have access to.
This Coca-Cola formula appears to be the original formula to Coca-
Cola. It is from the book “For God, Country and Coca-Cola”.
INGREDIENTS:
1 OZ.Citrate Caffeine
3 OZ. Citric Acid
1 OZ.Ext.Vanilla 1 Qt. Lime
Juice
2 ½ OZ.Flavoring 30
Ibs.Sugar
4 OZ.F.E,Coco 2 ½
gal.Water
Caramel Sufficient
FLAVORING :
80 Oil Orange 40 Oil
Cinnamon
120 Oil Lemon 20 Oil
Coriander
40 Oil Nutmeg 40 Oil
Neroli
1 Qt.Alcohol
11
DIRECTIONs :
Mix Caffeine Acid and Lime juice 1 Qt.
Boiling Water add Vanilla and flavoring when cool.
Let stand for 24 hrs
The company Coca-cola is a multinational and it is not limited to one
product. Through the years they have invented and introduced many
products than their basic cola drinks. The list of Coca-cola brands
are as follows:
1. Appletiser
2. Aquarius
3. BPM Energy
4. Barq's
5. Beat soda
6. Beverly
7. Cannings
8. Cheers
9. Ciel
10. Coca-Cola Black
Cherry Vanilla
11. Coca-Cola Blak
12. Coca-Cola C2
13. Coca-Cola Cherry
14. Coca-Cola Citra
15. Coca-Cola M5
16. Coca-Cola Zero
17. Coca-Cola
18. Coca-Cola with
Lemon
19. Coca-Cola with
Lime
20. Dasani
21. Delaware Punch
22. Diet Coke
23. Fanta
36. Lemon & Paeroa
37. Lift
38. Lift plus
39. Lilt
40. Manzana Lift
41. Mare Rosso
42. Mello Yello
43. Mezzo Mix
44. Minute Maid
45. Nestea
46. New Coke
47. Nordic Mist
48. OK Soda
49. Pibb Xtra
50. Powerade
51. Qoo
52. Raspberry Coke
53. Relentless
54. Sarsi
55. Senzao
56. Simply Orange
57. Smart
58. Sparkle
59. Sprite
60. Sprite Ice
61. Sprite Remix
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24. Fanta Citrus
25. Fioravanti
26. Fresca
27. Frisco
28. Fruitopia
29. Frutonic
30. Full Throttle
31. Georgia
32. Hi-C
33. Hit
34. Kia-Ora
35. Kinley
62. Sprite Zero
63. Surge
64. Swerve
65. Tab
66. Tab Clear
67. Tab Energy
68. Tab X-Tra
69. Tiky
70. Vault
Pepsi
The Pepsi-Cola drink contains basic ingredients found in most other
similar drinks including carbonated water, high fructose corn syrup,
sugar, colorings, phosphoric acid, caffeine, citric acid and natural
flavors. The caffeine free Pepsi-Cola contains the same ingredients
but no caffeine.
Some of the different and varied brands of Pepsi are as follows:
1. All Sport
2. Aquafina
3. Caffeine-Free Pepsi
4. Crystal Pepsi
5. Diet Pepsi
6. Gatorade
7. Izze
8. Jazz
9. Josta
10. Kas
11. Manzanita Sol
12. Mirinda
13. Mountain Dew
14. Mountain Dew AMP
15. Mountain Dew
LiveWire
16. Mountain Dew MDX
17. Mug Root Beer
18. Pepsi
19. Pepsi Blue
20. Pepsi Cappuccino
21. Pepsi Max
22. Pepsi ONE
23. Pepsi Samba
24. Pepsi Tarik
25. Pepsi Twist
26. Propel Fitness
Water
27. Sierra Mist
28. Slice
29. SoBe
30. Storm
31. Teem
32. Tropicana
Products
33. Tropicana Twister
13
Coke v/s Pepsi
As seen above both the companies Coke and Pepsi have a number of
products. Many of these products are innovations but there are also
many products which are brought out just as a competitive product
for the other companies. Some of these products that are brought in
the market by both the companies to compete against each other are
as follows:
Coke Pepsi
The main dark cola drink of the
company which started the rivalry
between these companies.
Pepsi version of dark cola which is
the major primary competitor to
Coke.
14
Full Throttle is an energy
drink brand produced by The
Coca-Cola Company. It
debuted in late 2004 in North
America.
AMP is an energy drink
produced and distributed by
PepsiCo under the Mountain
Dew soft drink brand.
Vault is a carbonated
beverage that was released by
The Coca-Cola Company in
June 2005.
Mountain Dew MDX is an
energy drink manufactured
and distributed by PepsiCo
under the Mountain Dew
brand. It was introduced in
2005.
Powerade is a sports drink by
The Coca-Cola Company and
currently number two in the
sports drink market
worldwide.
Gatorade is a non-carbonated
sports drink marketed by
Quaker Oats Company, a
division of PepsiCo.
Originally made for athletes,
it is now often consumed as a
snack beverage.
15
Sprite is a clear, lemon-lime
flavored, non-caffeinated soft
drink, produced by the Coca-
Cola Company. It was
introduced to the United
States in 1961.
7 Up is a brand of a lemon-lime
flavored soft drink.
Minute Maid is a product line
of beverages, usually
associated with orange juice,
but now extends to soft drinks
of many kinds. The Minute
Maid company is now owned
by Coca-Cola, and is the
world's largest marketer of
fruit juices and drinks. It is
headquartered in Houston,
Texas.
Tropicana Products is an
American company based in
Bradenton, Florida, USA,
which is one of the world's
largest producers and
marketers of orange juice. It
has been owned by PepsiCo,
Inc. since 1998.
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Nestea is a brand of iced tea
manufactured and distributed
by the Nestle company's
beverage department in the
United States, and by Coca-
Cola in several European
countries, Brazil and
Venezuela.
Lipton Original Iced Tea is a
ready-to-drink iced tea brand
sold by Lipton through a
worldwide partnership with
Pepsi.
Barq's is a brand of root beer
notable for being the only
major North American root
beer to contain caffeine. It
has been bottled since the
start of the 20th century and
is currently sold by the Coca-
Cola Company.
Mug Root Beer is a brand name of
root beer made by the Pepsi
company.
Diet Coke or Diet Coca-Cola
is a sugar-free soft drink
produced and distributed by
Diet Pepsi is a low-calorie
carbonated cola. It was
introduced in 1964 as a
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The Coca-Cola Company. It
was introduced in the United
States in July 1982.
variant of Pepsi-Cola with no
sugar.
Kinley is a brand of still or
carbonated water owned by
The Coca-Cola Company.
Aquafina is a non-carbonated bottled
water produced by PepsiCo.
Aquarius is a mineral sports
drink manufactured by The
Coca-Cola Company. It was
first introduced in 1983.
All Sport was a sports drink.
It is produced by PepsiCo.
18
Fanta is a soft drink brand
owned by The Coca-Cola
Company. It is produced and
distributed by The Coca-
Cola Company's bottlers.
Mirinda is a brand of soft
drink. Mirinda is owned by
PepsiCo.
Sprite Ice was the first
flavor extension for The
Coca-Cola Company's Sprite
brand soft drink.
Pepsi Blue is a soft drink made by
PepsiCo and launched in mid-2002.
Coca-Cola Blak is a coffee-
flavoured soft drink
introduced by Coca-Cola in
2006.
Pepsi Cappuccino is a
cappuccino-flavored
carbonated soft drink
produced by Pepsico.
19
Maaza is a Coca-Cola fruit
drink brand marketed in
India and Bangladesh.
Slice is a line of fruit-
flavored soft drinks
manufactured by PepsiCo
and introduced in 1984.
Limca is a lemon and lime
flavoured carbonated soft
drink made in India by
Coca-cola.
Teem was a lemon-lime-
flavored soft drink produced
by The Pepsi-Cola Company.
Price
In economics and business, the price is the assigned numerical
monetary value of a good, service or asset. Price is also central to
marketing where it is one of the four variables in the marketing mix
that business people use to develop a marketing plan. Pricing is a big
part of the marketing mix. Choosing the right price and the right
pricing strategy is crucial to the marketing process. The price of the
product is not something that is fixed. On the other hand the price of
the product depends on many other factors. Some times the price of
the product has got nothing to do with the actual product itself. The
price may act as a way to attract target customers. The price of the
product is decided keeping many things in mind. These things
include factors like cost incurred on the product, target market,
competitors, consumer buying capacity etc.
20
Coke - Price
Coke was a company ruling the markets before Pepsi entered. Earlier
the price of coke was cost based i.e. it was decided on the cost which
was spent on making the product plus the profit and other expenses.
But after the emergence of other companies especially the likes of
Pepsi, Coca-cola started with a pricing strategy based on the basis of
competition. Nowadays more expenses are spent on advertising my
soft-drink companies rather than on manufacturing.
Coke has brought in a revolution especially in Indian
markets with the Rs. 5 pricing strategy which was very
famous. It was the first company to introduce the small
bottle of Coke for just Re.5. This campaign was very
successful especially with the price conscious Indian
consumers.
Even today most prices of Coke are decided on the basis
of the competition in the market.
Pepsi – Price
Pepsi again decides it price on the basis of competition. The best
think about the company Pepsi is that it is very flexible and it can
come down with the price very quickly. The company is renowned to
bring the price down even up to half if needed.
But this risk taking attitude has also earned Pepsi losses. Though
lowering the price would attract the customers but it would not help
them cover up the cost incurred in production hence causing them
losses.
This was the situation earlier but now Pepsi is a full-fledged and
growing company. It has covered all its losses and is now growing at
a rapid rate.
21
Place
Place is a term that has a variety of meanings in a dictionary sense,
but which is principally used in a geographic sense as a noun to
denote location, though in a sense of a location identified with that
which is located there.
In marketing, place refers to one of the 4 P's, defined as "the market
place". It can mean a geographic location, an industry, a group of
people (a segment) to whom a company wants to sell its products or
services, such as young professional women (e.g. for selling
cosmetics) or middle-aged family men (e.g. for selling family cars).
Coke - Place
Coke is a multinational company and it has its market around the
entire world. This can be said just by the first page on its site which
asks people to select the place of their choice. The website looks
something like this:
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Pepsi – Place
Pepsi again has spread worldwide. Pepsi when entering a new market
does not go in alone but it looks for partners and mergers. Till now
Pepsi has collaborated with companies like Quaker Oats, Frito-lays,
Lipton, Starbucks, etc.
Pepsi like Coke has spread all over the world. It is because of this
worldwide spread that now it is coming up with Advertisements
which can be broadcasted in the different nations in the world. The
recent example with would be the Pepsi advertisements having
David Beckham as it brand ambassador.
Promotion
Promotion is one of the four aspects of marketing. Promotion
comprises four subcategories:
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Advertising
Personal selling
Sales promotion
Publicity and public relations
The specification of these four variables creates a promotional mix or
promotional plan. A promotional mix specifies how much attention
to pay to each of the four subcategories, and how much money to
budget for each. A promotional plan can have a wide range of
objectives, including: sales increases, new product acceptance,
creation of brand equity, positioning, competitive retaliations, or
creation of a corporate image.
Both the companies Pepsi and coke are famous for their promotions.
The rivalry was first started when Pepsi started with its blind taste
tests known as the Pepsi Challenge. The challenge is designed to be a
direct response to critics who allege that Coca-Cola and Pepsi-Cola
are identical drinks, with no meaningful differences. The challenge
takes the form of a taste test. At malls, shopping centers and other
public locations, a Pepsi representative sets up a table with two blank
cups, one containing Pepsi and one with Coke. Shoppers are
encouraged to taste both colas, and then select which drink they
prefer. Then the representative reveals the two bottles so the taster
can see whether they preferred Coke or Pepsi. If Pepsi is revealed,
the shopper is given a small prize. The implication is that Pepsi tastes
better than Coke, and thus consumers should purchase Pepsi.
In blind taste tests, more consumers prefer the taste of Pepsi to that
of Coca-Cola. Because Coke was the historical leader, more people
expected that they'd prefer and select Coke. Their surprise at picking
Pepsi in the blind taste test (products were served in unmarked cups)
helped change their minds about which product they prefer.
Capturing this on film, Pepsi turned this into a memorable TV
campaign that lasted many years.
Also ad-campaigns are put up on the television by both the players.
The following statistic just tells of much of share of ads on TV are
captured by these players.
24
In fact in the next graph you can see how many
programs are sponsored by cola companies and the
leader among them is Pepsi. Mainly Pepsi is the
company sponsoring most cricket telecasts happening
in India and spends most of its revenue in that field.
25
Nowadays both Coke and Pepsi are going in for Brand
Ambassadors to promote their product. These brand
ambassadors are famous people who usually people
idolize and people can relate to them. The following
pictures do not need any explanation as people are
familiar with the celebrities and can thus quickly
identify with the product.
A list of Celebrities that are brand ambassadors for the
cola companies are as follows. These celebrities are
not only asked to work in the advertisements but they
26
also have to use the product promoted by them and
they should not use the companies rivals products.
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CHAPTER
2
Proposed
Project Details
28
PROPOSED PROJECT TITLE:
To establish a soft-drink manufacturing company.
(The manufacturing unit will produce a mango soft drink)
NAME OF THE PROPOSED COMPANY: “MANJUGO DRINKS
MANUFACTURING COMPANY PVT. LTD”
PROPOSED AREA OF OPERATION:
Initially the company will operate in and around the cities like
Bhubaneswar, Cuttack, Puri and Jagatsinghpur. Later on it will
expand to other areas in Orissa.
LOCATION:
The proposed location for the manufacturing unit is Mancheswar
Industrial Estate, Bhubaneswar. The followings are its advantages:
1. Availability of land on lease
2. Transportation facilities are already there. The NH-5 is nearby
and it would be easy for procurement of goods and distribution
of finished products.
29
3. Since it is near the city, labour is available.
4. It would be easy for setting up the plant and bringing in the
machineries. If we locate in any other place (like a village
region) it would be difficult.
5. Electricity supply is easily available
6. Since it is an industrial area, all facilities are there.
TARGET SEGMENT:
The product (mango soft-drink) is meant for all age segments (all
age groups and income class) but the main focus will be on the
segment aged 5-25 years. This includes two age groups: children
and teen-aged people.
Mango flavored drink is liked by all age groups and in the
scorching summer heat of Orissa such drinks are in great demand.
In such a scenario, our product which contains natural fruit
extracts will be favored by all.
The main focus, as has been mentioned, will be on children and
teen-aged people, i.e., school and college going people. Because
30
market survey reveals that 75% of the soft-drink consumers are in
this age group. So it will be very profitable to target this segment.
31
There are many competitors in the category of soft-drink, but still
there is lot of potential in this market.
PRODUCT:
Name: MANJUGO
Type: mango soft-drink
Contents:
1. Mango extract
2. Sugar syrup
3. Citric acid
32
4. Sodium Citrate
5. Permitted Food Preservatives
6. Synthetic food color
33
7. Carbonated water
Manufacturing process:
The manufacturing process can be summed up as follows:
Clarifying the water
• The quality of water
is crucial to the
success of a soft
drink. Impurities,
such as suspended
particles, organic
matter, and bacteria,
may degrade taste
and color. They are
generally removed
through the
traditional process of
a series of
coagulation,
34
filtration, and
chlorination.
• Coagulation involves
mixing a gelatinous
precipitate, or floc
(ferric sulphate or
aluminum sulphate),
into the water.
• The floc absorbs
suspended particles,
making them larger
and more easily
trapped by filters.
During the
clarification process,
alkalinity must be
adjusted with an
addition of lime to
reach the desired pH
level.
Filtering, sterilizing, and dechlorinating the water
• The clarified water is
poured through a
sand filter to remove
fine particles of floc.
The water passes
through a layer of
sand and courser beds
of gravel to capture
the particles.
35
• Sterilization is
necessary to destroy
bacteria and organic
compounds that
might spoil the
water's taste or color.
The water is pumped
into a storage tank
and is dosed with a
small amount of free
chlorine.
36
• The chlorinated water
remains in the storage
tank for about two
hours until the
reaction is complete.
• Next, an activated
carbon filter
dechlorinates the
water and removes
residual organic
matter, much like the
sand filter. A vacuum
pump de-aerates the
water before it passes
into a dosing station.
Mixing the ingredients
• The dissolved sugar
and flavor
concentrates are
pumped into the
dosing station in a
predetermined
sequence according
to their compatibility.
The ingredients are
conveyed into batch
tanks where they are
carefully mixed; too
much agitation can
cause unwanted
aeration. The syrup
may be sterilized
37
while in the tanks,
using ultraviolet
radiation or flash
pasteurization, which
involves quickly
heating and cooling
the mixture. Fruit
based syrups
generally must be
pasteurized.
• The water and syrup
are carefully
combined by
sophisticated
machines, called
proportioners, which
regulate the flow
rates and ratios of the
liquids. The vessels
are pressurized with
carbon dioxide to
prevent aeration of
the mixture.
Carbonating the beverage
• Carbonation is
generally added to
the finished product,
though it may be
mixed into the water
at an earlier stage.
The temperature of
the liquid must be
carefully controlled
38
since carbon dioxide
solubility increases as
the liquid
temperature
decreases. Many
carbonators are
equipped with their
own cooling systems.
The amount of
carbon dioxide
pressure used
depends on the type
of soft drink. For
instance, fruit drinks
require far less
carbonation than
mixer drinks, such as
tonics, which are
meant to be diluted
with other liquids.
The beverage is
slightly over-
pressured with
carbon dioxide to
facilitate the
movement into
storage tanks and
ultimately to the filler
machine.
Filling and packaging
• The finished product
is transferred into
hard plastic-paper
39
packs that are
portable. There is
fully automated
packing machine.
• Because soft drinks
are generally cooled
during the
manufacturing
process, they must be
brought to room
temperature before
labeling to prevent
condensation from
ruining the labels.
This is usually
achieved by spraying
the containers with
warm water and
drying them. Labels
are then affixed to
bottles to provide
information about the
brand, ingredients,
shelf life, and safe
use of the product.
Most labels are made
of paper though
some are made of a
plastic film.
• Finally, containers
are packed into
cartons or trays
which are then
40
shipped in larger
pallets or crates to
distributors.
MACHINERY REQUIRED:
1. Water treatment equipment
2. Crushing juice extractor
3. Sugar melting boiler
4. Syrup Filter
5. Homogenizer
6. Pump
7. Soda machine
8. Sterilizer
9. Temperature Insulating storage Tank
10. Automatic Packaging machine
11. Feeling machine
12. Cooling Machine
41
PROPOSED PACKAGING:
Initially the soft-drink will be available only in 200 ml paper
pack along with a straw. The packs will be rectangular in
shape. The paper packs are portable, i.e., easy to carry.
Moreover they are bio degradable and hence environment
friendly.
PROPOSED PRICE:
The competitors are charging a price of around Rs. 10/- per
100 ml. The price of our product initially will be Rs.11/- per
200 ml.
Manufacturing cost (fixed cost & variable cost = Rs.5/-
Advertising Expenses = Re.1/-
Dealers commission = Re.1/-
Profit margin = Rs.4/-
Total cost = Rs.11/-
Advantages of such price:
It is affordable. The target segment does not have an
income of its own, in such case, our product’s price is
an attraction. While other competing products are
42
available at rs.10/- for 100 ml, our product is double the
quantity at just rs.1/- more.
This price will help us in penetrating the market.
PROMOTION
The promotion of the product will be done in the
following stages:
43
1.
Pamphlets
Along with the launch of the product, paper
pamphlets will be distributed near schools and
colleges and at major traffic points.
44
2.
Newspapers
The next stage would be promotional
advertisements in popular local newspapers like
“Dharitri”, “Samaj”, “Sambad”, “Prajatantra”,
“The New Indian Express”.
45
3.
Hoardings/Billboards and behind Auto
rickshaws and Trucks
4.
Advertisements in local TV channels like OTV
etc.
46
The promotion has to be given great importance because
the market for mango soft-drinks is highly competitive
with around 15 other players. The main positive point in
our product is its pure mango extracts and affordable
pricing. Unless these points are portrayed to the future
customers and registered in their minds, they will not
identify it. The product has to be positioned effectively
in their minds.
PLACE (DISTRIBUTION CHANNEL):
Products will be sold through shops (Beetle shops,
ration shops, ice cream and juice centre), malls (Food
bazaar, super markets, etc), canteens (college and school
canteens mainly and also office canteens). The company
will not have its own outlet. Distribution will be done
through agencies.
47
FEASIBILITY ANALYSIS
FINANCILAL FEASIBILITY:
Cost of land (on 3 years lease) = Rs. 6,00,000.00
Cost of building = Rs. 1,80,000.00
Cost of machinery:
MACHINERY PRICE
Water treatment equipment Rs. 85,000.00
Crushing juice extractor Rs. 45,000.00
Sugar melting boiler
(second hand)
Rs. 30,000.00
Syrup filter Rs. 12,000.00
Homogenizer Rs. 21,000.00
Pump Rs. 6,000.00
Soda machine Rs. 60,000.00
Sterilizer Rs. 15,000.00
Temperature insulating storage
tank
Rs. 18,000.00
Automatic packaging machine Rs. 50,000.00
Feeling machine
(second hand)
Rs. 12,000.00
Cooling machine Rs. 28,000.00
TOTAL
Including other misc. things:
Rs. 3,82,000.00
Rs. 4,00,000.00
48
TOTAL = Rs. 11,80,000.00
SOURCES OF FINANCE:
Own fund = Rs. 5,00,000.00
Loan from bank = Rs. 17,00,000.00
Total= Rs. 22,00,000.00
Capacity of the manufacturing unit = 10,00,000
packages per year.
Initially the plant will not function to its full capacity. It
will start production at 5,00,000 packages per year.
We had seen earlier that the profit margin is Rs. 4/- per
packet.
49
SO,
YEAR CAPACITY PROFIT
1 5,00,000 20,00,000
2 6,00,000 24,00,000
3 6,00,000 24,00,000
4 7,00,000 28,00,000
5 7,50,000 30,00,000
Around 50 people will be employed in the manufacturing units.
The company has to make provisions for their remuneration
(salary, wages, etc.).
The company has to keep a working capital of Rs.10,00,000/-
in hand for purchase of Raw materials and other expenditure.
If on an average say, the company keeps a salary provision and
misc provision of Rs.5,00,000/- then in the first year the net
profit will be around Rs. 5,00,000.00 (200000-100000-500000)
In the second year the net profit would be around Rs.
9,00,000/-
In the third year also the net profit is around Rs. 9,00,000.00
So, by the end of 3rd
year the company can repay the loan
amount of Rs.17,00,000 along with any interest and also pay
for renewal of the land lease.
Thus the project is economically viable.
LEGAL FEASIBILITY:
The company will be registered as per the Indian Companies
Act, 1956.
It will follow the guidelines under the act.
Remuneration to the workers will be as per the guidelines of
the government.
The existence of the company and all its operations will be
within the legal framework of the country.
50
MARKET FEASIBILITY:
The market for soft-drinks is highly competitive but market
research indicates that there is opportunity. It is a oligopoly. So
each player can get a share of the market.
SOCIO-CULTURAL/ ENVIRONMENTAL FEASIBILITY:
Health standards will be maintained.
There will be quality checks.
The waste material are all bio degradable, still, no waste
material is directly discharged into the environment.
TECHNICAL FEASIBILITY:
The infrastructure is well supportive for the machineries.
Those machines which are not fully automatic need trained
operators. Operators will therefore be given training. But
almost all are automatic machines.
The machines are not all imported and any breakdown or defect
can be immediately corrected so that the process does not come
to stand still.
COMPETITIVE ADVANTAGES:
1. Low price
2. High quality
3. Attractive packaging
4. Less calories
5. Real taste of Banganpalli & Alphonos(the king of
mango)
6. Available in two flavors
7. Special offer for dealers cum distributors
8. Seasonal offers for our customers
9. Provides a perfect nutritional balance
10.Discount on heavy purchases
51
11.Individually wrapped to guarantee freshness and
taste.
52
CONCLUSION:
This organization will formalize the customers services
offered. This course of action will be initially purchased as a
way to efficiently utilize the market and establish reputation
within the community just as customer satisfaction is a
intricate part of our success, so is employee satisfaction.
We foster the ideas of importance of customer needs along
with the healthy and understanding relationship and a
professional commitment to satisfaction. Ensuring
customer’s best interest is always of the utmost importance.
We wish to establish a successful partnership with our
clients, our staff members and our title companies, that
respect the interest and glory of each party.
In conclusion as shown in the highlights chart to follow this
plan projects rapid growth, as additional agents join and
high net profits over the next few years. Implementing this
plan, in conjunction with a comprehensive and detailed
marketing plan, will ensure that our project on soft drinks
becomes a profitable venture for the owners as well as for
the contracting agents.

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MANGO SOFTDRINK PROJECTS BY ASHIK MAHAPATRA

  • 1. 1
  • 3. 3 Guided by Dr. ASHIK MAHAPATRA Project coordinator
  • 4. 4 AcknowledgemAcknowledgem entent We avail this opportunity to profound our hearty thanks to all those who individually as well as collectively helped us in the successful completion of this project works. We would like to express our immense gratitude and sincere thanks to Mr ASHIK MAHAPATRA ( H.O.D. Dept. Of MECH ), whose co-operative guidance has helped us in successful completion of this Project on “Mango Soft drink”. Finally We would like to extend our sincere thanks to the entire faculty in Dept. of M.B.A for their valuable and scholarly guidance, constant supervision and timely advice and non-teaching staff of M.B.A Dept. and our friends without whom our endeavor wouldn’t have been successful. ASHIK MAHAPATRA
  • 5. 5 CERTIFICACERTIFICA TETE This is to certify that Ashik Mahapatra are bona fide students of final year, 8th semester, Department of MECH, TAT. This project report on “MANGO SOFT DRINK” is presented successfully in partial fulfillment of the requirement for the award of the “Bachelor Degree Of Technology”, in Mechanical Engineering from B.P.U.T., Orissa under our guidance and supervision during the session 2012-2015. Mechanical Engineering
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  • 7. 7 TABLE OF CONTENTS 1. Chapter 1 • Market Analysis of Coca-Cola & Pepsi  Coke Vs Pepsi ………………………… 17  Price ………………………………… 23  Place ………………………………… 25  Promotion …………………………… 27 2. Chapter 2 • Proposed Project Details  Area of Operation ……………………… 32  Location ………………………………… 32  Target Segment ………………………... 33  Manufacturing Process ………………… 36  Machinery Required …………………… 41  Packaging ……………………………… 41  Price …………………………………… 42  Promotion ……………………………… 42  Distribution Channel …………………...46
  • 8. 8  Feasibility Analysis …………………….46  Competitive Advantage ………………... 49  Conclusion …………………………… 50
  • 10. 10 MARKET ANALYSIS OF COCA- COLA & PEPSI Coke The Coca-Cola formula is The Coca-Cola Company's secret recipe for Coca-Cola. As a publicity marketing strategy started by Robert W. Woodruff, the company presents the formula as one of the most closely held trade secrets ever and only a few employees know or have access to. This Coca-Cola formula appears to be the original formula to Coca- Cola. It is from the book “For God, Country and Coca-Cola”. INGREDIENTS: 1 OZ.Citrate Caffeine 3 OZ. Citric Acid 1 OZ.Ext.Vanilla 1 Qt. Lime Juice 2 ½ OZ.Flavoring 30 Ibs.Sugar 4 OZ.F.E,Coco 2 ½ gal.Water Caramel Sufficient FLAVORING : 80 Oil Orange 40 Oil Cinnamon 120 Oil Lemon 20 Oil Coriander 40 Oil Nutmeg 40 Oil Neroli 1 Qt.Alcohol
  • 11. 11 DIRECTIONs : Mix Caffeine Acid and Lime juice 1 Qt. Boiling Water add Vanilla and flavoring when cool. Let stand for 24 hrs The company Coca-cola is a multinational and it is not limited to one product. Through the years they have invented and introduced many products than their basic cola drinks. The list of Coca-cola brands are as follows: 1. Appletiser 2. Aquarius 3. BPM Energy 4. Barq's 5. Beat soda 6. Beverly 7. Cannings 8. Cheers 9. Ciel 10. Coca-Cola Black Cherry Vanilla 11. Coca-Cola Blak 12. Coca-Cola C2 13. Coca-Cola Cherry 14. Coca-Cola Citra 15. Coca-Cola M5 16. Coca-Cola Zero 17. Coca-Cola 18. Coca-Cola with Lemon 19. Coca-Cola with Lime 20. Dasani 21. Delaware Punch 22. Diet Coke 23. Fanta 36. Lemon & Paeroa 37. Lift 38. Lift plus 39. Lilt 40. Manzana Lift 41. Mare Rosso 42. Mello Yello 43. Mezzo Mix 44. Minute Maid 45. Nestea 46. New Coke 47. Nordic Mist 48. OK Soda 49. Pibb Xtra 50. Powerade 51. Qoo 52. Raspberry Coke 53. Relentless 54. Sarsi 55. Senzao 56. Simply Orange 57. Smart 58. Sparkle 59. Sprite 60. Sprite Ice 61. Sprite Remix
  • 12. 12 24. Fanta Citrus 25. Fioravanti 26. Fresca 27. Frisco 28. Fruitopia 29. Frutonic 30. Full Throttle 31. Georgia 32. Hi-C 33. Hit 34. Kia-Ora 35. Kinley 62. Sprite Zero 63. Surge 64. Swerve 65. Tab 66. Tab Clear 67. Tab Energy 68. Tab X-Tra 69. Tiky 70. Vault Pepsi The Pepsi-Cola drink contains basic ingredients found in most other similar drinks including carbonated water, high fructose corn syrup, sugar, colorings, phosphoric acid, caffeine, citric acid and natural flavors. The caffeine free Pepsi-Cola contains the same ingredients but no caffeine. Some of the different and varied brands of Pepsi are as follows: 1. All Sport 2. Aquafina 3. Caffeine-Free Pepsi 4. Crystal Pepsi 5. Diet Pepsi 6. Gatorade 7. Izze 8. Jazz 9. Josta 10. Kas 11. Manzanita Sol 12. Mirinda 13. Mountain Dew 14. Mountain Dew AMP 15. Mountain Dew LiveWire 16. Mountain Dew MDX 17. Mug Root Beer 18. Pepsi 19. Pepsi Blue 20. Pepsi Cappuccino 21. Pepsi Max 22. Pepsi ONE 23. Pepsi Samba 24. Pepsi Tarik 25. Pepsi Twist 26. Propel Fitness Water 27. Sierra Mist 28. Slice 29. SoBe 30. Storm 31. Teem 32. Tropicana Products 33. Tropicana Twister
  • 13. 13 Coke v/s Pepsi As seen above both the companies Coke and Pepsi have a number of products. Many of these products are innovations but there are also many products which are brought out just as a competitive product for the other companies. Some of these products that are brought in the market by both the companies to compete against each other are as follows: Coke Pepsi The main dark cola drink of the company which started the rivalry between these companies. Pepsi version of dark cola which is the major primary competitor to Coke.
  • 14. 14 Full Throttle is an energy drink brand produced by The Coca-Cola Company. It debuted in late 2004 in North America. AMP is an energy drink produced and distributed by PepsiCo under the Mountain Dew soft drink brand. Vault is a carbonated beverage that was released by The Coca-Cola Company in June 2005. Mountain Dew MDX is an energy drink manufactured and distributed by PepsiCo under the Mountain Dew brand. It was introduced in 2005. Powerade is a sports drink by The Coca-Cola Company and currently number two in the sports drink market worldwide. Gatorade is a non-carbonated sports drink marketed by Quaker Oats Company, a division of PepsiCo. Originally made for athletes, it is now often consumed as a snack beverage.
  • 15. 15 Sprite is a clear, lemon-lime flavored, non-caffeinated soft drink, produced by the Coca- Cola Company. It was introduced to the United States in 1961. 7 Up is a brand of a lemon-lime flavored soft drink. Minute Maid is a product line of beverages, usually associated with orange juice, but now extends to soft drinks of many kinds. The Minute Maid company is now owned by Coca-Cola, and is the world's largest marketer of fruit juices and drinks. It is headquartered in Houston, Texas. Tropicana Products is an American company based in Bradenton, Florida, USA, which is one of the world's largest producers and marketers of orange juice. It has been owned by PepsiCo, Inc. since 1998.
  • 16. 16 Nestea is a brand of iced tea manufactured and distributed by the Nestle company's beverage department in the United States, and by Coca- Cola in several European countries, Brazil and Venezuela. Lipton Original Iced Tea is a ready-to-drink iced tea brand sold by Lipton through a worldwide partnership with Pepsi. Barq's is a brand of root beer notable for being the only major North American root beer to contain caffeine. It has been bottled since the start of the 20th century and is currently sold by the Coca- Cola Company. Mug Root Beer is a brand name of root beer made by the Pepsi company. Diet Coke or Diet Coca-Cola is a sugar-free soft drink produced and distributed by Diet Pepsi is a low-calorie carbonated cola. It was introduced in 1964 as a
  • 17. 17 The Coca-Cola Company. It was introduced in the United States in July 1982. variant of Pepsi-Cola with no sugar. Kinley is a brand of still or carbonated water owned by The Coca-Cola Company. Aquafina is a non-carbonated bottled water produced by PepsiCo. Aquarius is a mineral sports drink manufactured by The Coca-Cola Company. It was first introduced in 1983. All Sport was a sports drink. It is produced by PepsiCo.
  • 18. 18 Fanta is a soft drink brand owned by The Coca-Cola Company. It is produced and distributed by The Coca- Cola Company's bottlers. Mirinda is a brand of soft drink. Mirinda is owned by PepsiCo. Sprite Ice was the first flavor extension for The Coca-Cola Company's Sprite brand soft drink. Pepsi Blue is a soft drink made by PepsiCo and launched in mid-2002. Coca-Cola Blak is a coffee- flavoured soft drink introduced by Coca-Cola in 2006. Pepsi Cappuccino is a cappuccino-flavored carbonated soft drink produced by Pepsico.
  • 19. 19 Maaza is a Coca-Cola fruit drink brand marketed in India and Bangladesh. Slice is a line of fruit- flavored soft drinks manufactured by PepsiCo and introduced in 1984. Limca is a lemon and lime flavoured carbonated soft drink made in India by Coca-cola. Teem was a lemon-lime- flavored soft drink produced by The Pepsi-Cola Company. Price In economics and business, the price is the assigned numerical monetary value of a good, service or asset. Price is also central to marketing where it is one of the four variables in the marketing mix that business people use to develop a marketing plan. Pricing is a big part of the marketing mix. Choosing the right price and the right pricing strategy is crucial to the marketing process. The price of the product is not something that is fixed. On the other hand the price of the product depends on many other factors. Some times the price of the product has got nothing to do with the actual product itself. The price may act as a way to attract target customers. The price of the product is decided keeping many things in mind. These things include factors like cost incurred on the product, target market, competitors, consumer buying capacity etc.
  • 20. 20 Coke - Price Coke was a company ruling the markets before Pepsi entered. Earlier the price of coke was cost based i.e. it was decided on the cost which was spent on making the product plus the profit and other expenses. But after the emergence of other companies especially the likes of Pepsi, Coca-cola started with a pricing strategy based on the basis of competition. Nowadays more expenses are spent on advertising my soft-drink companies rather than on manufacturing. Coke has brought in a revolution especially in Indian markets with the Rs. 5 pricing strategy which was very famous. It was the first company to introduce the small bottle of Coke for just Re.5. This campaign was very successful especially with the price conscious Indian consumers. Even today most prices of Coke are decided on the basis of the competition in the market. Pepsi – Price Pepsi again decides it price on the basis of competition. The best think about the company Pepsi is that it is very flexible and it can come down with the price very quickly. The company is renowned to bring the price down even up to half if needed. But this risk taking attitude has also earned Pepsi losses. Though lowering the price would attract the customers but it would not help them cover up the cost incurred in production hence causing them losses. This was the situation earlier but now Pepsi is a full-fledged and growing company. It has covered all its losses and is now growing at a rapid rate.
  • 21. 21 Place Place is a term that has a variety of meanings in a dictionary sense, but which is principally used in a geographic sense as a noun to denote location, though in a sense of a location identified with that which is located there. In marketing, place refers to one of the 4 P's, defined as "the market place". It can mean a geographic location, an industry, a group of people (a segment) to whom a company wants to sell its products or services, such as young professional women (e.g. for selling cosmetics) or middle-aged family men (e.g. for selling family cars). Coke - Place Coke is a multinational company and it has its market around the entire world. This can be said just by the first page on its site which asks people to select the place of their choice. The website looks something like this:
  • 22. 22 Pepsi – Place Pepsi again has spread worldwide. Pepsi when entering a new market does not go in alone but it looks for partners and mergers. Till now Pepsi has collaborated with companies like Quaker Oats, Frito-lays, Lipton, Starbucks, etc. Pepsi like Coke has spread all over the world. It is because of this worldwide spread that now it is coming up with Advertisements which can be broadcasted in the different nations in the world. The recent example with would be the Pepsi advertisements having David Beckham as it brand ambassador. Promotion Promotion is one of the four aspects of marketing. Promotion comprises four subcategories:
  • 23. 23 Advertising Personal selling Sales promotion Publicity and public relations The specification of these four variables creates a promotional mix or promotional plan. A promotional mix specifies how much attention to pay to each of the four subcategories, and how much money to budget for each. A promotional plan can have a wide range of objectives, including: sales increases, new product acceptance, creation of brand equity, positioning, competitive retaliations, or creation of a corporate image. Both the companies Pepsi and coke are famous for their promotions. The rivalry was first started when Pepsi started with its blind taste tests known as the Pepsi Challenge. The challenge is designed to be a direct response to critics who allege that Coca-Cola and Pepsi-Cola are identical drinks, with no meaningful differences. The challenge takes the form of a taste test. At malls, shopping centers and other public locations, a Pepsi representative sets up a table with two blank cups, one containing Pepsi and one with Coke. Shoppers are encouraged to taste both colas, and then select which drink they prefer. Then the representative reveals the two bottles so the taster can see whether they preferred Coke or Pepsi. If Pepsi is revealed, the shopper is given a small prize. The implication is that Pepsi tastes better than Coke, and thus consumers should purchase Pepsi. In blind taste tests, more consumers prefer the taste of Pepsi to that of Coca-Cola. Because Coke was the historical leader, more people expected that they'd prefer and select Coke. Their surprise at picking Pepsi in the blind taste test (products were served in unmarked cups) helped change their minds about which product they prefer. Capturing this on film, Pepsi turned this into a memorable TV campaign that lasted many years. Also ad-campaigns are put up on the television by both the players. The following statistic just tells of much of share of ads on TV are captured by these players.
  • 24. 24 In fact in the next graph you can see how many programs are sponsored by cola companies and the leader among them is Pepsi. Mainly Pepsi is the company sponsoring most cricket telecasts happening in India and spends most of its revenue in that field.
  • 25. 25 Nowadays both Coke and Pepsi are going in for Brand Ambassadors to promote their product. These brand ambassadors are famous people who usually people idolize and people can relate to them. The following pictures do not need any explanation as people are familiar with the celebrities and can thus quickly identify with the product. A list of Celebrities that are brand ambassadors for the cola companies are as follows. These celebrities are not only asked to work in the advertisements but they
  • 26. 26 also have to use the product promoted by them and they should not use the companies rivals products.
  • 28. 28 PROPOSED PROJECT TITLE: To establish a soft-drink manufacturing company. (The manufacturing unit will produce a mango soft drink) NAME OF THE PROPOSED COMPANY: “MANJUGO DRINKS MANUFACTURING COMPANY PVT. LTD” PROPOSED AREA OF OPERATION: Initially the company will operate in and around the cities like Bhubaneswar, Cuttack, Puri and Jagatsinghpur. Later on it will expand to other areas in Orissa. LOCATION: The proposed location for the manufacturing unit is Mancheswar Industrial Estate, Bhubaneswar. The followings are its advantages: 1. Availability of land on lease 2. Transportation facilities are already there. The NH-5 is nearby and it would be easy for procurement of goods and distribution of finished products.
  • 29. 29 3. Since it is near the city, labour is available. 4. It would be easy for setting up the plant and bringing in the machineries. If we locate in any other place (like a village region) it would be difficult. 5. Electricity supply is easily available 6. Since it is an industrial area, all facilities are there. TARGET SEGMENT: The product (mango soft-drink) is meant for all age segments (all age groups and income class) but the main focus will be on the segment aged 5-25 years. This includes two age groups: children and teen-aged people. Mango flavored drink is liked by all age groups and in the scorching summer heat of Orissa such drinks are in great demand. In such a scenario, our product which contains natural fruit extracts will be favored by all. The main focus, as has been mentioned, will be on children and teen-aged people, i.e., school and college going people. Because
  • 30. 30 market survey reveals that 75% of the soft-drink consumers are in this age group. So it will be very profitable to target this segment.
  • 31. 31 There are many competitors in the category of soft-drink, but still there is lot of potential in this market. PRODUCT: Name: MANJUGO Type: mango soft-drink Contents: 1. Mango extract 2. Sugar syrup 3. Citric acid
  • 32. 32 4. Sodium Citrate 5. Permitted Food Preservatives 6. Synthetic food color
  • 33. 33 7. Carbonated water Manufacturing process: The manufacturing process can be summed up as follows: Clarifying the water • The quality of water is crucial to the success of a soft drink. Impurities, such as suspended particles, organic matter, and bacteria, may degrade taste and color. They are generally removed through the traditional process of a series of coagulation,
  • 34. 34 filtration, and chlorination. • Coagulation involves mixing a gelatinous precipitate, or floc (ferric sulphate or aluminum sulphate), into the water. • The floc absorbs suspended particles, making them larger and more easily trapped by filters. During the clarification process, alkalinity must be adjusted with an addition of lime to reach the desired pH level. Filtering, sterilizing, and dechlorinating the water • The clarified water is poured through a sand filter to remove fine particles of floc. The water passes through a layer of sand and courser beds of gravel to capture the particles.
  • 35. 35 • Sterilization is necessary to destroy bacteria and organic compounds that might spoil the water's taste or color. The water is pumped into a storage tank and is dosed with a small amount of free chlorine.
  • 36. 36 • The chlorinated water remains in the storage tank for about two hours until the reaction is complete. • Next, an activated carbon filter dechlorinates the water and removes residual organic matter, much like the sand filter. A vacuum pump de-aerates the water before it passes into a dosing station. Mixing the ingredients • The dissolved sugar and flavor concentrates are pumped into the dosing station in a predetermined sequence according to their compatibility. The ingredients are conveyed into batch tanks where they are carefully mixed; too much agitation can cause unwanted aeration. The syrup may be sterilized
  • 37. 37 while in the tanks, using ultraviolet radiation or flash pasteurization, which involves quickly heating and cooling the mixture. Fruit based syrups generally must be pasteurized. • The water and syrup are carefully combined by sophisticated machines, called proportioners, which regulate the flow rates and ratios of the liquids. The vessels are pressurized with carbon dioxide to prevent aeration of the mixture. Carbonating the beverage • Carbonation is generally added to the finished product, though it may be mixed into the water at an earlier stage. The temperature of the liquid must be carefully controlled
  • 38. 38 since carbon dioxide solubility increases as the liquid temperature decreases. Many carbonators are equipped with their own cooling systems. The amount of carbon dioxide pressure used depends on the type of soft drink. For instance, fruit drinks require far less carbonation than mixer drinks, such as tonics, which are meant to be diluted with other liquids. The beverage is slightly over- pressured with carbon dioxide to facilitate the movement into storage tanks and ultimately to the filler machine. Filling and packaging • The finished product is transferred into hard plastic-paper
  • 39. 39 packs that are portable. There is fully automated packing machine. • Because soft drinks are generally cooled during the manufacturing process, they must be brought to room temperature before labeling to prevent condensation from ruining the labels. This is usually achieved by spraying the containers with warm water and drying them. Labels are then affixed to bottles to provide information about the brand, ingredients, shelf life, and safe use of the product. Most labels are made of paper though some are made of a plastic film. • Finally, containers are packed into cartons or trays which are then
  • 40. 40 shipped in larger pallets or crates to distributors. MACHINERY REQUIRED: 1. Water treatment equipment 2. Crushing juice extractor 3. Sugar melting boiler 4. Syrup Filter 5. Homogenizer 6. Pump 7. Soda machine 8. Sterilizer 9. Temperature Insulating storage Tank 10. Automatic Packaging machine 11. Feeling machine 12. Cooling Machine
  • 41. 41 PROPOSED PACKAGING: Initially the soft-drink will be available only in 200 ml paper pack along with a straw. The packs will be rectangular in shape. The paper packs are portable, i.e., easy to carry. Moreover they are bio degradable and hence environment friendly. PROPOSED PRICE: The competitors are charging a price of around Rs. 10/- per 100 ml. The price of our product initially will be Rs.11/- per 200 ml. Manufacturing cost (fixed cost & variable cost = Rs.5/- Advertising Expenses = Re.1/- Dealers commission = Re.1/- Profit margin = Rs.4/- Total cost = Rs.11/- Advantages of such price: It is affordable. The target segment does not have an income of its own, in such case, our product’s price is an attraction. While other competing products are
  • 42. 42 available at rs.10/- for 100 ml, our product is double the quantity at just rs.1/- more. This price will help us in penetrating the market. PROMOTION The promotion of the product will be done in the following stages:
  • 43. 43 1. Pamphlets Along with the launch of the product, paper pamphlets will be distributed near schools and colleges and at major traffic points.
  • 44. 44 2. Newspapers The next stage would be promotional advertisements in popular local newspapers like “Dharitri”, “Samaj”, “Sambad”, “Prajatantra”, “The New Indian Express”.
  • 45. 45 3. Hoardings/Billboards and behind Auto rickshaws and Trucks 4. Advertisements in local TV channels like OTV etc.
  • 46. 46 The promotion has to be given great importance because the market for mango soft-drinks is highly competitive with around 15 other players. The main positive point in our product is its pure mango extracts and affordable pricing. Unless these points are portrayed to the future customers and registered in their minds, they will not identify it. The product has to be positioned effectively in their minds. PLACE (DISTRIBUTION CHANNEL): Products will be sold through shops (Beetle shops, ration shops, ice cream and juice centre), malls (Food bazaar, super markets, etc), canteens (college and school canteens mainly and also office canteens). The company will not have its own outlet. Distribution will be done through agencies.
  • 47. 47 FEASIBILITY ANALYSIS FINANCILAL FEASIBILITY: Cost of land (on 3 years lease) = Rs. 6,00,000.00 Cost of building = Rs. 1,80,000.00 Cost of machinery: MACHINERY PRICE Water treatment equipment Rs. 85,000.00 Crushing juice extractor Rs. 45,000.00 Sugar melting boiler (second hand) Rs. 30,000.00 Syrup filter Rs. 12,000.00 Homogenizer Rs. 21,000.00 Pump Rs. 6,000.00 Soda machine Rs. 60,000.00 Sterilizer Rs. 15,000.00 Temperature insulating storage tank Rs. 18,000.00 Automatic packaging machine Rs. 50,000.00 Feeling machine (second hand) Rs. 12,000.00 Cooling machine Rs. 28,000.00 TOTAL Including other misc. things: Rs. 3,82,000.00 Rs. 4,00,000.00
  • 48. 48 TOTAL = Rs. 11,80,000.00 SOURCES OF FINANCE: Own fund = Rs. 5,00,000.00 Loan from bank = Rs. 17,00,000.00 Total= Rs. 22,00,000.00 Capacity of the manufacturing unit = 10,00,000 packages per year. Initially the plant will not function to its full capacity. It will start production at 5,00,000 packages per year. We had seen earlier that the profit margin is Rs. 4/- per packet.
  • 49. 49 SO, YEAR CAPACITY PROFIT 1 5,00,000 20,00,000 2 6,00,000 24,00,000 3 6,00,000 24,00,000 4 7,00,000 28,00,000 5 7,50,000 30,00,000 Around 50 people will be employed in the manufacturing units. The company has to make provisions for their remuneration (salary, wages, etc.). The company has to keep a working capital of Rs.10,00,000/- in hand for purchase of Raw materials and other expenditure. If on an average say, the company keeps a salary provision and misc provision of Rs.5,00,000/- then in the first year the net profit will be around Rs. 5,00,000.00 (200000-100000-500000) In the second year the net profit would be around Rs. 9,00,000/- In the third year also the net profit is around Rs. 9,00,000.00 So, by the end of 3rd year the company can repay the loan amount of Rs.17,00,000 along with any interest and also pay for renewal of the land lease. Thus the project is economically viable. LEGAL FEASIBILITY: The company will be registered as per the Indian Companies Act, 1956. It will follow the guidelines under the act. Remuneration to the workers will be as per the guidelines of the government. The existence of the company and all its operations will be within the legal framework of the country.
  • 50. 50 MARKET FEASIBILITY: The market for soft-drinks is highly competitive but market research indicates that there is opportunity. It is a oligopoly. So each player can get a share of the market. SOCIO-CULTURAL/ ENVIRONMENTAL FEASIBILITY: Health standards will be maintained. There will be quality checks. The waste material are all bio degradable, still, no waste material is directly discharged into the environment. TECHNICAL FEASIBILITY: The infrastructure is well supportive for the machineries. Those machines which are not fully automatic need trained operators. Operators will therefore be given training. But almost all are automatic machines. The machines are not all imported and any breakdown or defect can be immediately corrected so that the process does not come to stand still. COMPETITIVE ADVANTAGES: 1. Low price 2. High quality 3. Attractive packaging 4. Less calories 5. Real taste of Banganpalli & Alphonos(the king of mango) 6. Available in two flavors 7. Special offer for dealers cum distributors 8. Seasonal offers for our customers 9. Provides a perfect nutritional balance 10.Discount on heavy purchases
  • 51. 51 11.Individually wrapped to guarantee freshness and taste.
  • 52. 52 CONCLUSION: This organization will formalize the customers services offered. This course of action will be initially purchased as a way to efficiently utilize the market and establish reputation within the community just as customer satisfaction is a intricate part of our success, so is employee satisfaction. We foster the ideas of importance of customer needs along with the healthy and understanding relationship and a professional commitment to satisfaction. Ensuring customer’s best interest is always of the utmost importance. We wish to establish a successful partnership with our clients, our staff members and our title companies, that respect the interest and glory of each party. In conclusion as shown in the highlights chart to follow this plan projects rapid growth, as additional agents join and high net profits over the next few years. Implementing this plan, in conjunction with a comprehensive and detailed marketing plan, will ensure that our project on soft drinks becomes a profitable venture for the owners as well as for the contracting agents.