2015

Grape Seed & Oil Extraction

earth
Making Lives

SUBMITTED TO
SIR SHAHID M. HAQ

GROUP MEMBERS
INTERIM REPORT
SAQIB INAM
MARKETING MANAGEMENT
SANA WISAL
MBA
1-B
SONYA
ARIF
M. OSMAN SIDDIQUI

Table of Contents
Executive Summary....................................................................................4
1.

Nature of Business..............................................................................5

2.

Slogan.................................................................................................5

3.

Vision..................................................................................................5

4.

Mission................................................................................................5

5.

Goals & Objectives..............................................................................6

6.

Key to Success....................................................................................6

7.

Industry Analysis................................................................................6

8.

Product...............................................................................................7

9.

Why Grape Seed Extract.....................................................................7

10.

Commercial Farming...........................................................................8

11.

Industry & Market Forecast.................................................................9

12.

Marketing Mix.....................................................................................9

12.1.

Price..............................................................................................9

12.2.

Product........................................................................................10

12.3.

Place...........................................................................................10

12.4.

Promotion....................................................................................10

13.

Situational Analysis...........................................................................11

13.1.

Customers...................................................................................11

13.2.

Competitors................................................................................11

13.3.

Company.....................................................................................12

13.4.

Context.......................................................................................12

14.

SWOT Analysis..................................................................................13

14.1.

Strength......................................................................................13

14.2.

Weakness....................................................................................13

14.3.

Opportunity.................................................................................13

14.4.

Threat.........................................................................................13

15.

Marketing Strategy...........................................................................14

15.1. Market Segmentation.......................................................................14

15.2. Target Marketing...............................................................................14
15.3. Position.............................................................................................14
16.

Operational Plan...............................................................................15

17.

Production Plan.................................................................................16

18.

Forecasting.......................................................................................16

19.

Contingency Plan..............................................................................16

Executive Summary
This Marketing Plan is a search for sustainable and renewable fuel as demand for
organic bi-products. Among all the crops and fruits, evaluated Grape Seed
present itself as one of the most viable source of Health Supplements, Low
Cholesterol Commercial Oil, Herbal Medicine, Massage Oil and alternate fuel i.e.
Bio Diesel. The seed of the plant can be pressed to extract oil and crushed to
extract powder for Medicines, Ointments, Creams, Commercial Oil, and Wine
Grapes Waste can put into a high temperature spontaneous combustion process
through a refinery and produce a clean and a renewable energy known as Bio
Diesel.
Through this report we are going to present the feasibility of planting Grape
Vines on aeration, loose texture, good drainage and moderate fertility lands
which make part of our country, seed of which can be used to produce organic
products and bio-diesel. With this implemented we seek the country to be selfsufficient on its energy.
The business is to lease 30 Acres of land in Fateh Jang and plant Grape Vines.
Our goal is to become the industry leader in the production, marketing, and sale
of Grape Seed & Oil Extractand Bio-Diesel. By cultivating these remedial
products, we are raising hopes of cancer cures and organic product demand with
no side effects and increasing use of farmers by providing Bio-Diesel by utilizing
wine grapes waste which will act as a source of income for rural farmers in Fateh
Jhang.
We have a diversified market segment catering to every product offering we
have. Beverages segment for Juices and Wine. FMCG Segment for Oil, Soap,
Shampoo & Conditioner. And Oil Manufacturing Segment for Bio-Diesel.

Nature of Business
Grape Earth, a startup business focused at making lives of the community
healthier and safer. Grape Earth is the first of its kind ever to step into the
agricultural community of Pakistan. Grape-Earth farm is located in Fateh Jhang
spanning over an area of 30 Acres. Grape Earths aim is to turn grape waste into
a renewed source of energy for a greener better lifestyle. Grapes are being
harvested by Food & Drink companies for the sole purpose of providing a
quality juice. Grapes can also be used by the pharmaceutical companies for
manufacturing gelatin tablets. What goes into the gelatin coated tablet is a
different story altogether. Apart from targeting the pharmaceutical industry, we
will also step into to the consumer oil industry as well as provide as the
petroleum industry.

Slogan
Making Lives Better One by One

Vision
To becomes the largest exporter of refined premium quality export of grape seed
& oil extractor

Mission
To build awareness of the benefits on human health by holding multiple
campaigns across cities.

Goals & Objectives

Target consumers with high disposable income
Raise awareness of benefits of grape seed oil on health
Premium exporters of wine, bio-diesel, oil & medicines
Commercial production of bio-diesel
Conduct medical campaigns quarterly.
Advertise health supplements
Increase market share.

Key to Success
High returns
Low variable cost, because the plant is drought resistant and can even survive
without water for two years; Fertilizers are also not necessary.
Renewable energy provides jobs, whereas other sources capture technology
Huge market potential
First Mover Advantage

Industry Analysis
Growing population leads to depletion of natural resources and the need to
innovate new renewable resources and market them as viable alternatives.

Grapes have always been a favorite of many, some enjoy its rich taste, while
summer like the color of the grape because science says: the food you eat
reflects your personality. Apart from the juicy pulp and the mesmerizing multiple
colors of grapes, there is more you can take out of grape, and that is what Grape
Earth is best at.
The potential of our product line is endless due a completely new consumer
goods which arent that heavy on the pocket and deliver high level of
satisfaction. From the oil used in homes and restaurants to the oil used in
massage centers, from the industrial production of medicines to skin ointments
and creams and till the degree of providing better fuel economy, Grape earth
offers everything under one umbrella.
The number of automobiles are growing with every passing second by to
accommodate such high demands of gasoline is going to be difficult to supply.
Research and development done on renewable fuel solutions have given us the
answer of inducting Bio-Diesel which delivers better mileage and protects the
engine on the go. Cooking oil demand is increasing by a staggering 15.7%.
Demand for natural herbal medicines increasing at an exponential rate of 35.2%.
Need for alternate fuel is growing at a rate of 41%.

Product
Grapes can produce about 3-5 tons of yield per acre and vine grapes produce
about 10-12 tons of yield per acre. 1 ton of grapes yield gives you 720 bottles of
juice. And 1 ton of wine grapes yield gives you 1440 bottles of wine. Area
required for initial plantation is 30 acres of land available in Fateh Jhang. Grape
seed extract is recovered from the drained grapes. And bio-diesel is produced
from conversion of wine grapes. 720 Bottles and 1440 Bottles of black grapes
and wine grapes respectively are extracted from the pulp. The seed and skin are
already separated before extraction of juice.

Why Grape Seed Extract

The benefits of Grape Seed Extract are as follows:
Anti-Inflammation & Infection Cure
Seed Contains 23-25% Oil
Improve Bone Strength
Protection From Skin Cancer
Cardiovascular Benefits
Preventing Cognitive Decline
Regulating Blood Sugar
Anti-Aging
Winery Waste Conversion into Bio-Diesel
Prevents Tooth Decay
Anti-Oxidant
Prevention from Bacterial Pathogens
Treating hemorrhoids

Commercial Farming
Commercial farming of grape seed extract has not been practiced in Pakistan.
Which gives the first move advantage. The growing need for alternative fuel,
natural herbal medicines and oil has empowered us to proceed with the first ever
grape seed extraction farm. Wine grapes waste conversion produces a low CO2
emission Bio-Diesel. Bio-Diesel produced from wine grapes waste gives a friction
less fuel for your automobiles with better than average mileage as compared to
the current market offered fuel.
Grapes will be planted on 10 acres of land from the available 30 acres, and wine
grapes will be planted in the remaining 10 acres. The left over acres will house
the installation of machinery for extraction of grape seed extract and refinery for
grape seed oil. The composition of grape seed oil will be similar to current
cooking oils present in the marketing but of course with added medical benefits
listed above.
The composition of mineral diesel and bio-diesel are similar. As a result
distribution of bio-diesel can be done in the same tanks, dispensers and used as
a replacement of mineral diesel. Since bio-diesel from wine grapes can be
produced at almost 10% cost of mineral diesel, hence it can be sold at a lower
price.

Industry & Market Forecast

According to the rising figures the need for bio-diesel as become imminent due
to high carbon emission from mineral diesel and as worry to save the remaining
ozone layer, bio-diesel induction is necessary. As the consumer develops
knowledge about the benefits of natural herbal medicines and natural oil, its
high time to start marketing grape seed bi-products especially because grapes
seed extract holds the cure to cancer. Death tolls due to cancer are growing
annually by 16.6%, because people still believe chemotherapy is the only cure
for cancer, but not many can afford it. That is where grape seed extract steps in
as a convenient reasonable cure for cancer in forms of capsules and oil both.

Marketing Mix
This includes the 4Ps of Marketing i.e. Product, Price, Place and Promotion.

Price
We have estimated the price of our products as follows:
Grape Juice 80 PKR/ Liter
Red Wine 500 PKR/ Liter
Cooking Oil 625 PKR/ Liter
Massage Oil 40 PKR/ Liter
Natural Medicines 250 PKR/ 2 Dozen Capsules
Ointments & Creams 70 PKR/ 100g
Acne Soap 150 PKR
Shampoo & Conditioner 575 PKR/ 500ml

Bio-Diesel 50 PKR/ Liter

Product
The Following is the list of products manufactured and refined by Grape Earth.
Grape Juice
Red Wine
Cooking Oil
Massage Oil
Natural Medicines
Ointments & Creams (Anti-Aging & Fairness)
Acne Soap
Shampoo & Conditioner
Bio-Diesel

Place
Grape Earth will operate in a B2B business model where we will distribute our
juices, oil and medicines and creams to the leading mega stores (Metro &
GreenValley) in Pakistan. We will distribute our refined bio-diesel to oil
concerning companies under the supervision of OGRA.
Our farm is situated at an ideal location of Fateh Jhang because most of the
companies have operational headquarters nearby as well, for e.g. Meezan Oil
Mills, and others.

Promotion
Promotion will be conducted in Islamabad & Rawalpindi initially for Grape Juice,
Red Wine, Cooking Oil, Massage Oil, Medicine, Shampoo and Conditioner
through, Print Media, Digital Media, E-marketing, Bill Board Advertisement,
Cooking shows sponsors, fitness center posters and paid commercial
advertisements
along
with
awareness
and
promotional
campaigns
simultaneously over the year respectively.
With a little difference, we will also promote our products in rural areas, where
our massage oil, will be used by local masseuse favorable for landlords. Our both
anti-aging and fairness cream being offered at such a low price is sure to attract
females of rural areas because of the rising need of fair girls by families living in
urban cities.
As for Bio-Diesel it will be provided to the current market promoters PSO. Our
team will deliver a presentation in response of attaining procurement for BioDiesel from PSO. Once PSO has been satisfied we will move onto other crude oil
refineries and delivery a presentation to them as well.

Situational Analysis

Situational Analysis consists of 4Cs i.e. Customers, Competitors, Company and

Context.

Customers
Over Customers are diversified. We have customers from both rural and urban
areas for other specific products. Customers of Juice are consumers from the age
group of 18-45. Customers of Wine are consumers from the age of 25-40.
Customers of Cooking Oil are already segmented under the same age group as
Dalda and Meezan. Customers for Massage Oil Spa Centers located in E & FSectors of Islamabad and Bahria Town Rawalpindi. Customers for Acne Soap are
consumers from the age group of 12-26. Customers for Shampoo & Conditioner
are from the same age group as Pantene & Clear. Customers of Bio-Diesel are the
Oil Refineries in Pakistan.

Competitors
Competitors present in the market with respect to the product offered are as
follows:
Product
Grape Juice
Red Wine
Cooking Oil
Massage Oil
Natural Medicines
Ointments & Creams (Anti-Aging
Fairness)
Acne Soap
Shampoo & Conditioner

&

Competitors
Nestle, Shezan, & Tops
Mitchels& Murree Brewery
Dalda, Meezan, Rafan, Sufi.
Himalaya
Abbot, Glaxo Smith Kline.
Fair & Lovely, LOral
Non-Branded
Herbal Essences

Company
Grape Earth will require a 30 acre land initially. It wont hold a typical corporate
structure. It will be similar to a typical farm. Grape Earth focuses on providing
natural remedies to customers by safeguarding their health through consumption
of organic products. The company will hire 2 head agriculturalists, with vast field
experience. 3 technical heads for machinery operations, 6 farmers and 4 factory
laborers. Then our distribution department have 4 employees and our sales force
will have 6 employees who will market the product individually and will be giving
the presentations to companies to come in contract with.

Context
Annual Demand for Natural Organic Products is expected to increase by 8.4%
during the current fiscal year (2015-2016) because Pakistan is a developing
country also the industries are also in developing stages. Consumption of locally
produced high quality organic products will reduce the import of medicines and
cosmetics equipment. As for the demand of Bio-Diesel, it is expected to increase
by 13.6% in the current fiscal year (2015-2016). This will aid the government by
reducing the amount of crude oil imported from $15 Million to $2-3Million
because everyone will switch to Bio-Diesel

SWOT Analysis
This Includes the Internal and External Company Analysis. Strengths &
Weaknesses are Internal Factors, whereas Opportunities & Threats are external
factors.

Strength
Horizontal Integration: Raw materials for every product.
Very strong research and development operations.
Vertical Integration: Easy sourcing from wineries of the parent company. (Raw
materials are by-products of the wine and grape juice-making processes.)

Weakness
Huge R&D costs. Testing and trials take a lot of time for product innovation or
new launches.
Product marketing is a very dependent on co-branding with other companies

Opportunity
Increasing its operations into other countries.
Unawareness among people about the health benefits of grape seed extract.
Opportunity of market development.
Expanding the use of products in functional beverages and foods to build a
leadership role for the company in the supplement industry.

Threat
Influx of low-cost, sub-standard Asian grape seed extracts.
Changing product features to maintain compliance with different government
regulations and norms in different countries can alter consistency in quality.

Marketing Strategy
Grape Earth will operate under the Market Penetration - Product Development
Strategy, which is about offering new products into existing markets.

Market Segmentation
Market Penetration through Product Development Strategy already helps you in
locating the market segments for your products, but the difference arises in rural
areas where Grape Earth will also place its products in small community stores
located in remote areas mainly near Fateh Jhang, Chakbeli & Rawat. Grape Earth
will help rural area consumers develop the understanding that they can also use
an urban community product, therefore eliminating any line of social class
discrimination. Grape Earth will hold promotional campaigns at fitness centers to
market their health supplements.

Target Marketing

Grape Earth is operating in two Target Markets, Firstly in Urban Cities, and
secondly in Rural Areas. In Urban Cities, Grape Earth is targeting those people
who prefer organic products irrespectively of class. But there is also an offering
of finest quality Wine for the elite social class with high disposable income. Rest
of the products are conveniently priced so as to not strike as a cheap or
ridiculously expensive product. For rural areas, grape earth target market are
rural area masseuse and females for fairness creams and low cholesterol cooking
oil.

Position
Grape Earth products are positioned as a premium quality convenient yet
affordable product line and as a healthy replacement for both humans and
automobiles. Our Bio-Diesel will act as replacement for mineral oil and halt the
government from spending millions on export.

Operational Plan
Operational Plan is the basic layout of how the whole process will undergo once
implemented in real time. Its starts with the acquisition of land, followed by
terrain forming of the land. Then comes the installation of machinery. Later on
comes the plantation of black grapes and wine grapes in their respectively
allotted 10 acres land each. After the grapes have grown we move on to
harvesting of grapes. This is the point where skin, seed and pulp are separated
from each other. Seed and Skin are left to dry for 24 hours and pulp is used for
juice and wine extraction. After the seeds have dried the black grapes seed and
skin are moved into the cold press machine for oil and powder (medicine-gelatin
capsules) extraction. And wine grapes waste are delivered to the high
temperature refinery for bio-diesel extraction.

F
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Production Plan

Year 1
Year 2
Year 3
Year 4
Year 5
Yield/plant
Kg
0.50
2
6
8
10
No.
Of
80,000
120000
120000
120000
120000
plants
Yield/year
Seeds/k 67500
270000
810000
1080000 1350000
g
Grape vines need approximately 13001500 hours of sunshine during the
growing season and around 690 millimeters (27 in) of rainfall throughout the
year in order to produce grapes. Grapes are grown in the long warm summer
months and harvest in the cold winter months.

Forecasting

This is a look at the cumulative revenue and net income for the next couple of
years Grape Earth Products. They have increased both revenue and net income
for the next four years, so they are on a positive growth mode.
(In Rupees)
Revenue
Net income

2015 (Annual)
500,000
-358,052

Contingency Plan

2016 (Annual)
3,140,550
-276,108

2017 (Annual)
8,101,477
5,159,890

2018 (Annual)
15,885,569
9,137,939

Grape Seed Extracts can always be exported to other countries.

Diesel generators and power plants can run on Bio-Diesel to produce clean and
economical electricity of both urban and rural areas of Pakistan.