A Project Report on Idea Generation and Analysis of Small Business

Submitted by: Arjun Chalise Enrollment No: PGPM10A008

Submitted To: Rai Business School New Delhi, India

A Project report submitted in the partial fulfillment of The requirement for degree of Post Graduate Program In Planning and Entrepreneurship (PGPPE) Feb, 2012

Declaration

Feb, 2012

I hereby declare that this final semester project report has been prepared as per the instructions of the syllabus prescribed by Rai Business School for Post Graduate Program in Planning and Entrepreneurship intended to submit Faculty of Finance, Rai Business, under the supervision of Mr. Sumesh Kumar. This report is my original work and has not been submitted to other universities or colleges earlier.

Arjun Chalise

PREFACE
Progress in life, business or any project comes through taking initiatives & continuing to progress on new concepts & ideas. The original momentum is not enough to keep you moving forward. Your progress will grit to halt unless you refill engine for inspiration with fuel of fresh ideas with enthusiasm & proper guidance. Accomplishment requires the effort of many people and this work is no different. I would like to thank all those who helped me directly or indirectly and whose diligent efforts made this project possible. First and foremost, I would like to thank our PGPPE course designers for creating such a practical based education system under the Faculty of Finance of Rai Business School (RBS), which enables to enhance the capability and potentiality of students. The furthermost thank goes to our PGPPE program Dean Dr. KVN, Class Coordinator Mrs. Ruchika Gupta, EMSB faculty, Mr. Sumesh Kumar along with RBS Family for providing an opportunity to apply our theoretical knowledge into practical work through final semester project report.

Arjun Chalise

Background of the study

The objective of the PGPPE course is to provide world class education in the field of management to the aspiring students who wish to develop skills of effective leadership and managerial capabilities to meet the challenges in corporate world. The institute aims at instilling in young managers skills and capabilities indispensable to todays changing global environment. The program strives to nurture in students; Interpersonal and communication competencies, Commitment to ethical and legal business practices, Leadership and team building qualities, Capabilities to anticipate and manage change through practical business exposure, Ability to take decisions under dynamic and uncertain situations The mission of PGPPE program is to develop socially responsive, creative, and result oriented management professionals to fill up the higher level managerial position in the rapidly growing business sector in India and abroad. One of the major features of PGPPE program is the Industry Integrated which allows the students to imply their theoretical knowledge on the real work place. Thus, the project is a practical section of the PGPPE program required to be completed by each and every PG students. Industry integrated program teaches us the corporate culture, develops our public relationship skills, makes us competent and provides us an excellent experience.

Objectives The main objectives of this Project report can be listed as hereunder:

To understand the concept and features of small business. To know how the ideas are arises and entrepreneur develop its into business plan. To understand the process of preparation of small scale business plan. To observe the business plan from different aspects of management. To develop the creative skills for higher level management. To develop the skill in planning fields, especially in business planning and forecasting. To evaluate the hypothetical data. To develop the assumptions for uncertain environment for business plan. To fulfill the academic requirement of the program.

Methodology This Project report is based on hypothetical data. This Project report is prepared through my creative skills.
Limitation of the Study

The main limitations of this study are as follows: Most of the information is report through personal thought and observation of other small scale business, so overall information may not be presented. The time period of 1/2 months was not enough for develop the appropriate business plan. Individual work wouldnt sufficient for business plan.

BUSINESS PLAN
KATHMANDU BREWERY

1. Executive Summary
Kathmandu Breweries is a medium-scale brewery that is located in the growing industrial centre of Kathmandu, Nepal. This is a relatively new business in its start-up phase having been incorporated recently. We are on the brink of penetrating a lucrative market in a rapidly-growing economy. The current trend towards an increase in the number of entrepreneurs and competition amongst existing companies presents an opportunity for Kathmandu Breweries to penetrate the market. Our products will be positioned very carefully. They will be of extremely high quality to ensure customer satisfaction, supported by impeccable service to our customers. Our primary goal will be to establish and strengthen our license to trade, which will be bestowed by the communities in which we function. As Kathmandu Breweries prospers and grows, these communities will continue to benefit from both the value created by Kathmandu Breweries and its behavior as a corporate citizen. Initial plans are to produce three main lines of products primarily focusing on X, Y, and Z beer (which comes in different flavors: B, P, C and S). These products will be sold in different sized containers ranging from the 250 ml ginger beer to the 500 ml traditional beer. These products shall be extensively distributed to remote, yet extremely viable areas where the market is appreciative of readily available, good quality brew. To prosper there is need for Kathmandu to be flexible and responsive, to delight customers by providing them with what they want, when they want it and before the competition. From product concept to goods dispatch we intend to ensure that every policy and procedure, system and process must have the objective of improving the flexibility and response of the whole company. There is a need for interaction between all functional areas, particularly between marketing and manufacturing, if the organization is to realize its full potential, with manufacturing being employed as a strategic weapon. Our target markets will primarily constitute the corporate and working class who appreciate good quality traditional beer. The working class will range from the miners, who constitute a large portion of the market, to administrative personnel appreciative of good quality traditional beer. The corporate or managerial segment will constitute those managers, who though aware of their image and reputation, want to put aside their ties and jackets after hours and/or on weekends to drink good traditional beer, easily accessible in the urban areas.

1.1 Objectives
Our business strategy will revolve around the need to provide quality brew to our various target customers, in the process fully satisfying their needs. Our objectives will revolve around the following guiding principles:

Provision of a great work environment, treating each other with respect and dignity. Apply high-quality standards of excellence to all business processes. Develop enthusiastically-satisfied customers all of the time. Contribute positively to our communities and our environment. To continuously formalize and measure cross-functional working communication so as to ensure that the various departments work harmoniously towards attainment of company objectives.

To instill a culture of continuous improvement in beating standards of customer satisfaction and efficiency.

Fully commit to supporting growth and development in the economy.

1.2 Key to Success

The keys to Kathmandu Breweries success will undoubtedly be effective market segmentation through identification of several niche markets and implementation strategies. Excellence in Fulfilling the Promise Effective and Efficient Distribution Network Assembly Technology Loyalty and Dedication Adherence to Stringent Values and Principles

1.3 Mission
Kathmandu Breweries intends to create a pleasant, enjoyable and sociable environment through the provision of refreshing high-quality brews. Hence we intend to assist in the creation of a welcoming and relaxed ambiance reflective of people enjoying themselves. We are sensitive to the taste, look and feel of good beer, as well as affordable prices depending on the market. We intend to provide the best possible value to our customers who care about quality products at affordable prices, and we want every dollar spent on our products to be well spent.

2. Company Summary
Kathmandu Breweries is a relatively new company providing high quality alcoholic and nonalcoholic beverages in the local market. Kathmandu Breweries intends to focus on the brewing process and the brewery itself. The brewery will house four stainless steel vessels whose shiny finish will be highlighted by the flood lights on the ceiling. Interested stakeholders will be able to observe the brewing process during the day and will be offered guided educational tours of the brewing facility. It will focus initially on providing and satisfying two kinds of markets:

Corporate Class: This will constitute all those people in middle and top managerial
positions who appreciate good quality traditional beer.

Working Class: This will range from the miners who constitute a large portion of the
market to administrative personnel appreciative of good quality traditional beer. 2.1 Start up summary Total start-up capital and expenses (including legal costs, logo design, stationery and related expenses) came to approximately $41,700. Start-up assets required and utilized included brewing plant and machinery, pick-ups, office furniture, personal computers and other office equipment. This figure comes to $840,000. Start-up Funding Requirement Start-up Expenses Start-up Assets Total Requirement $41,700 Fund Sources Current Borrowing Investor A Investor B Investor C Investor D Total Fund $20,000 $650,000 $76,700 $35,000 $100,000 $881,700

$840,000 $881,700

2.2 Company Ownership Kathmandu Breweries is a Private Limited company incorporated at the Registrar of Companies through the foresight and vision of Mr. X and Mr. Y. 2.3Company Locations and Facilities At present the company plants and offices are located in the growing industrial center of Kathmandu, Nepal with intentions of establishing an additional plant in Chitwan.

3.Products
Kathmandu Breweries produces and markets several products. There are three main products currently in its production line. These are: X Beer, Y Beer, Z Beer (Note: Z comes in different flavors): B, P, C, S. All products are periodically taken for testing to the National Food Laboratory for quality checks so as to ensure that they conform to required quality standards. 3.1 Product Description Kathmandu Breweries produces products of high quality and impeccable taste. The company currently produces three main lines of products, namely X beer, Y beer and Z beer. All three have unique properties that will enable them to excel on the market. X Beer Although similar in appearance to the only other product available in the market, our beer has the superior flavor and texture, smooth, with no rough solids. Y Beer This refreshing drink has the unique feature that it can be enjoyed both as an alcoholic or nonalcoholic drink, depending on the fermentation period after production. Z Beer This traditional food product is widely consumed as a substitute for regular meals and energy booster, whenever available. 3.2 Competitive Comparison Identifying competition in terms of companies that fill the same needs that we do, our competitors are few in our main product lines, though dominant in the market. Hence there will be a need to strongly differentiate ourselves from these other businesses. However on a broader scale our competition comes in several forms: The most significant competition is that of XX Breweries, which the market leader is arguably. They have a wide and established distribution network that they utilize to their advantage. 3.3 Technology Kathmandu Breweries will strive to maintain the latest and most efficient assembly technology so as to ensure quality-brewed beverages, and maintain low production costs ultimately benefiting the consumer. Keeping abreast with technological developments will ensure we gain and maintain a competitive advantage utilizing the latest production techniques.

4. SWOT Analysis
We are in a highly lucrative market in a rapidly growing economy. We foresee our strengths as the ability to respond quickly to what the market dictates and to provide quality brew in a growing market. In addition, through aggressive marketing and quality management we intend to become a well-respected and known entity in our respective industry. However we acknowledge our weakness of a medium-sized company without a lot of experience, and the threat of new competition taking aim at our niche. Below are the summarized strengths, weaknesses, opportunities and threats.
Strengths

Strategic market segmentation and implementation strategies. Diversified market segments: ensuring the lack of dependency on one particular market. Establishment and maintenance of strong capital base. An aggressive and focused marketing campaign with clear goals and strategies.

Weaknesses

Lack of a reputation in comparison to our competitors. A limited financial base compared to the major players in the industry. Lack of clear-cut channels of distribution. Establishment on the Internet will produce technological challenges.

Opportunities

Specific niche: Appreciation for high-quality brew, enjoyment, and refreshment. The new generation of individuals and families has a far greater appreciation of attractive packaging (image conscious).

Internet marketing and sales--though still in its infancy. Increasing number of foreign firms, especially from South Africa looking at penetrating the market.

Threats The present growth in the market may result in market saturation, through competition. This competition could emerge from a variety of given sources including: Established mass-market companies' development of new lines and vertically integrating.

5. Market Analysis Summary

Today we are experiencing rapid growth in the economy of unsurpassed nature. The fiscal and monetary policies of the government geared towards maintaining growth with social justice have largely contributed towards this, evidenced by our economy averaging a growth rate of 5% since 1990--very high by international standards. The current drive and emphasis by the government on diversification of the industrial base away from the minerals sector presents an opportunity for Kathmandu Breweries to make a valuable contribution towards achieving this goal. This will result in implementation of modern production techniques and transfer of knowledge. Having undertaken a thorough and comprehensive research of the market we realized that there was a need for a manufacturer that focuses on producing affordable thirst quenching brew tailored to satisfying client's needs. As a result we intend to implement a niche marketing strategy, focusing on certain target markets, particularly in view of XX Breweries dominance on the market. Our initial overall target market share shall be 6% of the local market.

5.1 Market Segmentation Kathmandu Breweries will be focusing on the corporate and working class who appreciate good quality traditional beer. The working class will range from the miners who constitute a large portion of the market, to administrative personnel appreciative of good quality traditional beer. The corporate or managerial segment will constitute those managers who though aware of their image and reputation, want to put aside their ties and jackets after hours and/or on weekends to drink good traditional beer, easily accessible in the urban areas. Our most important group of potential customers are those in the rural areas who often converge after hours to socialize and update one another on local news. These are potential customers who want to have an enjoyable time whilst drinking a good refreshing beverage. Target Market Segment Strategy Our marketing strategy will be based mainly on making the right product available to the right target customer. We will ensure that our products' prices take into consideration peoples' budgets and that these people appreciate the product and know that it exists, including where to find it.

Market Trends Our target markets are increasingly growing towards recognizing the difference between poor quality brews and those of high quality. This development is an important trend for us as it represents our target market. We now are having an increasing number of people who appreciate the traditional brews whilst living in the urban areas. With this in mind we intend to ensure that our packaging is respectable and attractive. Market Growth Import statistics provide a reliable guide as to the size of the brewing industry. According to the Trade Department, the market has been growing at a steady rate of 7% per annum although it is projected to increase slightly in 1999 and 2000. According to the most recent Trade Department import statistics for beer and wine, total beer and wine imports stood at 10,421,968 liters ($14,473,000) in 1998 whilst total exports stood at 864,668 liters ($281,363) in the same year. 5.2 Industry Analysis Industry analysis information is presented in the following subtopics. Competition and Buying Patterns The key element in purchase decisions made at the Kathmandu Breweries customer level is the availability of an affordable, thirst-quenching product of good quality. The most important factor in this market is the distribution network. This is particularly so considering the good distribution network that XX Breweries Limited has in place enabling them to produce products that are constantly in demand throughout the country. Main Competitors Being in a predominantly monopolistic market structure, competition in the brewery manufacturing market as a whole is not that intense (in terms of numbers) at the current time due to the dominance of XX Breweries Limited, which has been on the market for a relatively long period of time. Cognizance should also be taken of home brewers who represent competition on our intended market. However upon closer research we identified several niches in the market that we may exploit, not wanting to confront XX Breweries one-on-one.

XX Breweries Limited and ZZ Breweries - T Brewery Holdings Arguably the largest and most reputable manufacturer, supplier and marketer of alcoholic and non-alcoholic beverages in the country, XX Breweries has been on the market for a considerable period of time now. Part of the large and extremely reputable conglomerate, YY Breweries International, XX Breweries is currently the dominant domestic producers of beer, sorghum and Coca-Cola products in the country, with an overall market share of more than 95%. XX Breweries is able to take advantage of the financial, managerial and technical clout that it has through YY Breweries International. Hence Kathmandu intends to take advantage of this weakness.

Establishment XX Breweries XX Breweries XX Breweries XX Breweries

Location Pokhara Birgung Butwal Biratnagar

Employment Size 100+ Employees 50-99 Employees 100+ Employees 100+ Employees

XX Breweries In Pokhara Recent financial results from T Brewery Holdings indicate that the organization as a whole has continued to perform exceptionally. Turnover grew by 42% whilst operating profit is up 60% from $21.5 million to $34.5 million. For the 12 months to 31 March 2000, volume growth exceeded non-mining GDP growth by more than 2%, resulting in turnover growth of 12%.

6. Strategy and Implementation Summary

Our marketing strategy emphasizes focus. This will be the key. We are currently building image and awareness through consistency and distinctiveness in our product provision. We intend to focus on delivering quality products that in turn produce good referrals, which can then generate revenue. 6.1 Value Proposition Our value proposition is offering our customers refreshes and enjoyment at reasonable prices ensuring peace of both body and mind. Hence we intend to: Market the benefit, not the product. Ensure customer satisfaction. Develop long relationships.

Market the company.

6.2 Sales Strategy For the short term at least, the selling process will depend on personal selling and advertising to lure and inform potential clients about the products we offer and the benefits of consuming our products. Our marketing does not intend to affect the perception of need as much as knowledge and awareness of the product categories. Sales Forecast

Sales Forecast
Year 1 Sales X Beer Y Beer Z Beer Total Sales Direct Cost of Sales X Beer Y Beer Z Beer Subtotal Direct Cost of Sales $659,712 $527,769 $278,545 $1,466,026 $725,683 $580,546 $306,400 $1,612,629 $812,765 $650,211 $343,167 $1,806,144 Year 2 Year 3

Year 1 $369,439 $295,551 $155,985

Year 2 $406,383 $325,106 $171,584

Year 3 $455,149 $364,118 $192,174

$820,975

$903,072

$1,011,441

6.3 Marketing Strategy Market penetration through lower prices shall be undertaken where need be, while premium pricing will be the case of the upper-end of the market.

Service Provision
The service aspect of Kathmandu Breweries marketing mix shall constitute an important element in delivering total quality. Customer service shall be enhanced through infrastructure support in the form of merchandising and credit facilities, and alternative distribution facilities where possible and viable.

Pricing Strategy
Initially our prices will not be under our control but dictated by the market conditions prevailing at the particular time. We intend our income structure to match our cost structure, so as to ensure that the salaries we pay to assure good workmanship is balanced by the price we charge.

Promotion Strategy
Advertising Public Relations Personal Selling Direct Marketing

Distribution Strategy
Trade Channels:
1. 2.

Wholesale Distribution Channels Retail Distribution Channels

6.4 Corporate Social Responsibility

Kathmandu Breweries intends to be involved in a wide range of social responsibility engagement programs to invest back into the community in which we operate. Through our social responsibility program we can assist in improving peoples lives. We intend to be involved in the following activities: Community Education Health Environment

7. Production Summary
Our production system shall strive to attain service excellence in addition to manufacturing safe, quality products. This shall be undertaken through the engagement of modern production techniques using up-to-date assembly technology. This will also result in low production costs being attained by the company. By the undertaking the above we will optimize our productivity given our available resources. 7.1 Suppliers Currently the company obtains the vast majority of its raw materials from Local suppliers. Hence we intend to establish good rapport with all our suppliers and hence long mutually beneficial business relationships. This shall be undertaken through working closely with suppliers to ensure uninterrupted deliveries. 7.2 Receiving During the actual off loading the receiving bay personnel will mass check on at least X% of the consignment. Non-confirming raw materials in terms of quality will only be approved with the consent of the managing director who would have undertaken further analysis of it. 7.3 Storage It shall be the policy of the company to ensure that all raw materials are stored in a secure, clean and pest free manner. Stock takes and reconciliations shall be undertaken on a regular basis, initially done at least once a week. The stock principle of First in First out (FIFO) shall be implemented. 7.4 By-Products Kathmandu Breweries intends to utilize every resource it has to the fullest possible extent. We realize that there shall be a lot of by-products that will be produced from our production of the main product lines. However not wanting to pollute the environment, and our community at large, we plan to utilize by-products whenever possible. This will ensure that our resources are fully utilized.

8. Management Summary
Kathmandu Breweries shall evaluate the jobs it provides, paying competitive remuneration packages against market benchmarks to employees for their agreed and set out tasks. 8.1 Management Team The management team, mainly comprising of the shareholders, has wide expertise and broad knowledge of the products and markets, which if well planned for, will enable the business to realize its goals and objectives. Daily management will consist of Mr. B in the role of technical and operations, and Mr. G in dealing with government, corporate bodies, and public relations. Management style will reflect the participation of the shareholders. 8.2 Personnel Plan We intend to compensate our personnel well, to retain their invaluable expertise and to ensure job satisfaction and enrichment through delegation of authority. Our compensation will include health care, generous profit sharing, plus a minimum of three weeks vacation. 8.3 Training In-house training shall be continuous with regular external training being undertaken particularly following any new developments in the market. This is so as to ensure that we are continuously able to anticipate our markets needs--a proactive approach, which is so essential if we are to gain and maintain a competitive advantage. 8.4 Feedback and Control We intend to use employee satisfaction surveys to shape the business, making sure that the employee understands the goals of the firm, is customer focused, proud of their work and work as a team. This will encourage employees to become entrepreneurial and customer responsible, in addition to unifying staff in customer focus and values.

9. Financial Plan
We want to finance growth mainly through cash flow and equity. The most important factor in our case is collection days, particularly with the bulk order customers. We can't push our customers hard on collection days, because they are extremely sensitive and will normally judge us on our terms. Respect for realistic forecasts, and conservative cash flow and financial management.

Cash flow as first priority, growth second, profits third. Fundamental respect for giving our customers value, and for maintaining a healthy and congenial workplace.

Willingness to follow the company and contribute valuable input to strategy and implementation decisions.

Important Assumptions We assume a strong economy, without major recession. We assume, of course, that there are no unforeseen changes in economic policy to make our products immediately obsolete. 9.1 Break-even Analysis Our break-even analysis will be based on running costs, that is costs we shall incur in keeping the business running, including salaries and wages, rent, water and electricity, insurance amongst others. Hence many fixed costs shall be included in these costs. The following chart and table summarize our break-even analysis. With fixed costs of approximately $41,040 per month at the outset (a bare minimum), we need to bill approximately $93,000to cover our costs. We don't really expect to reach break-even

Break-even Analysis
Monthly Revenue Break-even Assumptions: Average Percent Variable Cost Estimated Monthly Fixed Cost 56% $41,040 $93,273

9.1 Projected Profit and Loss

Our projected profit and loss is shown on the following table, with sales increasing from more than $1,466,000 the first year to more than $1,612,000 the second, and approximately $1,806,000 in the third year.

Pro Forma Profit and Loss

Year 1 Sales Direct Cost of Sales Other Total Cost of Sales Gross Margin Gross Margin % Expenses Payroll $331,200 $331,200 $383,000 $1,466,026 $820,975 $0 $820,975 $645,051 44.00% Year 2 $1,612,629 $903,072 $0 $903,072 $709,557 44.00% Year 3 $1,806,144 $1,011,441 $0 $1,011,441 $794,703 44.00%

Sales and Marketing and Other Expenses Depreciation Leased Equipment Utilities Insurance Rent Payroll Taxes Other

$54,000 $10,200 $2,400 $4,800 $4,200 $36,000 $49,680 $0

$56,700 $10,200 $2,520 $5,040 $4,410 $37,800 $49,680 $0

$59,535 $10,200 $2,646 $5,292 $4,631 $39,690 $57,450 $0

Total Operating Expenses

$492,480

$497,550

$562,444

Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred Net Profit

$152,571 $162,771 $2,000 $37,020 $113,552

$212,007 $222,207 $1,000 $52,752 $158,255

$232,260 $242,460 $0 $59,033 $173,227

Net Profit/Sales

7.75%

9.81%

9.59%

9.3 Key Financial Indicators The following benchmark chart indicates our key financial indicators for the first three years. we foresee major growth in sales and operating expenses, and a bump in our collection days as we spread the business during expansion. Collection days are very important. We do not want to let our average collection days get above 30 under any circumstances. This could cause a serious problem with cash flow, because our working capital situation is chronically tight. However, we recognize that we cannot control this factor easily, because of the relationship with our clients.

9.4 Expense Forecast Initial marketing expenses are relatively high as we seek to become known on the market. This will be brought about by the development of sales literature, advertising expenses, and function expenses (including lunches and dinners with interested stakeholders). As our market share increases and capital is generated, further marketing programs and the expansion of those in existence at the time will be undertaken, to ensure market development. Once these programs will start generating revenue for the business, which we shall in turn reinvest.

9.5 Projected Balance Sheet The balance sheet shows healthy growth of net worth, and strong financial position.

Pro Forma Balance Sheet

Year 1 Assets Current Assets Cash Accounts Receivable Inventory Other Current Assets Total Current Assets Long-term Assets Long-term Assets $750,000 $750,000 $750,000 Year 2 Year 3

$36,162 $277,831 $123,414 $0 $437,407

$90,329 $305,614 $135,756 $0 $531,698

$231,533 $342,287 $152,047 $0 $725,867

Accumulated Depreciation

$10,200

$20,400

$30,600

Total Long-term Assets Total Assets Liabilities and Capital Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities Long-term Liabilities Total Liabilities Paid-in Capital Retained Earnings Earnings Total Capital

$739,800 $1,177,207 Year 1

$729,600 $1,261,298 Year 2

$719,400 $1,445,267 Year 3

$146,655 $20,000 $0 $166,655 $0 $166,655 $938,700 ($41,700) $113,552 $1,010,552

$92,492 $0 $0 $92,492 $0 $92,492 $938,700 $71,852 $158,255 $1,168,807

$103,233 $0 $0 $103,233 $0 $103,233 $938,700 $230,107 $173,227 $1,342,034

Total Liabilities and Capital Net Worth

$1,177,207 $1,010,552

$1,261,298 $1,168,807

$1,445,267 $1,342,034

10. Controls
The local brewing market has been growing steadily over the last few years due to increases in people's disposable income and opening of the economy. With this in mind we intend our marketing programs to expand accordingly. The introduction of quality catalogues and sales literature will enable Kathmandu Breweries to market to potential customers. We project sales to increase accordingly, though slightly slower as we establish a reputation for ourselves. With time, a presence on the Internet and participation in regional trade shows will be key milestones to expanding sales and marketing potentials through the utilization of new channels and identification of potential customers. Throughout the year we intend to undertake regular evaluations of our marketing programs so as to ensure that we are in-line with our intended objectives. In summary we intend to undertake the following: Tracking and follow-up: We intend to have the discipline, as an organization, to track results of the business plan and make sure that we implement. Market segment focus: We intend to have the discipline to maintain the market segment focus. Saying no: Though difficult initially, we intend to be able to say no to special deals that take us away from the target focus and are unprofitable.

10.1 Contingency Planning

We intend to watch our results very carefully. We may need to drop production of certain products if we cannot get the margin up or material becomes difficult to obtain. We might be able to avoid the straight competition with the major companies by focusing more on the previously mentioned products. Another possibility is the introduction of a new company(s) in our niche. Hence the need to undertake aggressive marketing and networking. An established beverage manufacturer may begin targeting to our target market niche. Hence the need for commitment in our work and striving of total quality in our organization.

END OF BUSINESS PLAN