Company Information

FJP Agro is a company which will produce fruit juice. FJP Agro is going to make unique
position in terms of corporate presence and also a platform for other Fruit Juice companies, with
its advanced technology and the instrumentation required to manufacture a Juice that has many
different flavors, utmost customer satisfaction. FJP Agro will be an environment-friendly
company dedicated on sustainable development and corporate social responsibility, as a service
to society and preservation of nature.

Selection of The Product

The product selected is Juice and our brand name is Fresh Juicy Punch.

Fresh Fruit
Punch

Product
Fresh Juicy Punch is a 100 percent fruit juice which will be produced and marketed by the FP
Agro Industries Ltd.

Fresh Punch will produce juice in the following varieties:

 Sea Buckthorn
 Apricot
 Kiwi
 Pomegranate
 Apple
 Orange
 Pineapple
 Grapes
 Guava
 Mango
 Mixed Fruit
 Pear
 Lemon Mint

Location of The Product

o Chittagong – Raw Materials

o Fresh Juicy Punch – Product.
 Objectives
 Carry out business in the field of horticulture and food processing in Chittagong.
 Target of capturing at least 10 percent of the market share within a year and 20 percent
by 2020 end.
 To provide best fresh fruit juice in every people of the country.
 Will reduce unemployment in BD which is now major concern.
Mission
“To be a leading producer of fruit juices based on dedication to nature, corporate and process
hygiene, dynamic leadership and commitment to our partners and stakeholders.”
Vision
“To be capable to deliver the range and quality of Juice which the customer demands, which can
only be fulfilled by the modern technology which will have the scale and worldwide presence to
do so competitively”
Industrial Analysis
Fruit drink market:

Juice Accounts 30%

Nectar 10%

Juice Drinks 60%

 Juice and juice drink category is among the fastest growing segments.
 Fruit drinks as a category is growing at 18-20 per cent, carbonated soft drinks are
growing at 6-8 per cent.
 It’s the fastest growing liquid beverage category.
 More than 90 % of sales happen through the unorganized route – juice centers, street
corner shops and so on.
SWOT Analysis
Strengths Weaknesses
 Adequate availability of raw materials.  Seasonal availability of fruits.
 High consumer retention rate.  Brand acknowledgement.
 Price, a competitive advantage.  Limited financial resources.
 Natural Product.  Late entry into the market.
Opportunities Threats
 Participation with growing industries.  Cut throat competition.
 Competitive advantage over carbonated  Unstable government policies.
soft drinks.  Scarcity of raw materials.
 Wellness awareness among consumers.
 TARGET MARKET
 Our target market will be Primary market and Secondary market.

Primary Market:
 Kids – Fond of fruit juice (Mango, strawberry)
 Teen – More experimental
 Youth – Experimental and buying powers
 Working people
 Housewives
 Elderly people

Secondary market:
 Travel industry – Airlines, railways & local transport system.
 Recreational – Movie theaters, malls, amusement park, school, colleges, hotels,
restaurants, bars etc.

Market segmentation
Market segmentation is the process in marketing of dividing a market into distinct subsets
(segments) that behave in the same way or have similar needs.

Variables used for segmentation:

 Geographic
 Demographic
 Psychographic
 Behavioral

Geographic variables:
 FP Agro has no set geographic target area. By leveraging the benefits of liberalization
and integration of the markets of the world, FP will seek to serve both domestic and
international customers.
 Metropolitan Cities, major cities of the states, and towns.
 Density of Area: Urban, Semi-urban, Rural.
 Climate : Tropical

Demographic variables:
 Age – all age group
 Gender – Both Male and Female
 Family size - doesn’t matter
 Education - doesn’t matter
 Income – middle & hi end consumer
 Occupation – student, working and retired people
 Religion – doesn’t matter
 Nationality/race – doesn’t matter
 Language - doesn’t matter
Psychographic variables:

Personality NO
Lifestyle Yes
Value Yes
Attitude Yes

Behavioral variables:
 Benefit sought
 Product usages rate
 Brand loyalty
 Profitability
 Income status
 Occasions
 Attitude towards product

Marketing mix
Product:
Type Fruit Juice
Features Fresh juicy punch is a 100% fruit juice which will be produced &
marketed by FJP Agro industries ltd.
PLC Our product lie in introduction period.
Identification Brand name – Fresh Juicy Punch.

Product Life Cycle:

Our product lie in introduction period.
 Low sales
 High costs per customer
 Negative profits
 Innovator customers
 Few competitors
 Objective: to create awareness and trial
 Offer a basic product
 Price at cost-plus
 Selective distribution
 Awareness – dealers and early adopters
 Induce trial via heavy sales promotion

Place:
 Fruits such as Orange, apple, pineapple etc. would be purchased from CTG.
 Mango would be purchased from Dinajpur & Rangpur.
 Retail & wholesale network of Bangladesh.
 Expanding its reach in the food service industry by securing placements in hospitals,
airlines, railways, hotels, and restaurants.
 Product location availability:
 Fresh Juicy Punch has no set geographic target area.
 By leveraging the benefits of liberalization and integration of the markets of the
world, our product will seek to serve both international and domestic customers.
 Metropolitan cities, small cities and towns.
 Density of Area: Urban, semi urban and rural.

Pricing:
As a new comer our pricing strategy is to introduce our products in the market at lower prices so
as to create huge demand in the market and then compete with other competitors.
As we come up in the demand, we will increase our prices and will provide more efficient
affordable drinks.

Pricing policy:
 Apply the concept of providing quality product at optimum price.
 Provide lucrative discounts, deals and schemes.
 Adopt sales oriented objective.
 Have one price policy to maintain a goodwill among customers.

Pricing strategic matrix:

Penetration pricing:-
o Our product will be lie on penetration
strategy with high quality & low price.
o For introducing new product.
o Price low to capture market share.
o Expect to make profit in volume.

Factors influencing our juice demand:

 The amount of the good demanded depends on:
o The price of the juice
o The income of consumer
o The demand for alternatives juice which could be used as substitutes
o The demand for juice used at the same time
o Whether people like the taste of juice
Factors influencing our juice supply:
 The total sales of juice depends on:
o The price of the good
o The cost of making the good
o The supply of alternative goods
o The supply of goods actually produced at the same time
o Unexpected events that affect supply
The factors which will contribute to the success for our juice demands in market:
 High consumer retention rate.
 Price, a competitive advantage.
  Natural product.
 Great distribution network.
 Healthy product.
Launching and Promotion:
Provide free samples in the market for the brand awareness.
Advertising:
The following shows the advertising in the print media to our target audience by using the
message showing a glass full of juice “Drink this much every day”.

Long term strategy:

 Change beverage choices in vending machines at school and colleges
 Assess the financial impact on school and college profits
 Identify approaches to promote healthful beverage choices and maintain profits for
schools and collages
 Targeting:
o 3500 smallest school and colleges all over Bangladesh
o 20000 in largest school and colleges all over Bangladesh

Identification of Competitors
 Coca-Cola
 Pepsi
 Frutika
 Frooto
 Shezan
 Mojo
 7UP
 Sprite
 Financial Estimates
Financial Data:

 Form of Business : Partnership

 Total cost of the project : 2,94,82,517
 Plant Capacity : Processing of 5000ltr per day
 Means of Financing : 50% through partner’s capital
: 50% through loan
 Major raw material : Fruits
 Total number of workers : 20
 Depreciation Rate : WDV@15%

Total Cost of The Project:

Machinery Qty. Rate Amount

Collection Tank 3 4,00,000 12,00,000
Filter 3 3,00,000 9,00,000
Addictive mixing Tank 2 2,00,000 4,00,000
Boiler 3 3,00,000 9,00,000
Cutter and filling machine 3 2,50,000 7,50,000
Storage Tank 3 4,00,000 12,00,000
Other Machinery 4 1,50,000 6,00,000
Building & Warehouse 1 1,20,00,000 1,20,00,000
Total fixed assets 1,79,50,000
Preliminary expenses 1,00,000
Furniture & Fixtures 5,00,000

Contingency Margin 1,00,000

Total Capital Expenditure 1,86,50,000
Working capital needed 1,08,32,517
Total cost of project 2,94,82,517

Details of the land and Building:

Particular Sq. ft Rate/sq.ft Total

Building 5000 1500 7500000

Warehouse 3000 1500 4500000

Total Land Required 8000 1500 12000000

Annual Demand Estimation For 100% Capacity:
 Product (Tetra pack) Rate/unit No. of unit Amount in Rs.
 Pure coco fresh (180 ml) 18 5,00,000 90,00,000
 Coco fresh mango (180 ml) 20 7,00,000 1,40,00,000
 Pure coco fresh (560 ml) 50 5,00,000 2,50,00,000
 Coco fresh mango (560 ml) 55 6,00,000 3,30,00,000
 Coco sugar free (560 ml) 65 7,00,000 4,55,00,000
 Total Sales 30,00,000 12,65,00,000
8200 units per day
Projected Profit:
Particulars 1st Year 2nd Year 3rd Year
Sales / Receipts 10,12,00,000 10,75,25,000 11,38,50,000
Manufacturing Expenses
Raw materials 5,05,60,000 5,37,20,000 5,68,80,000
Wages 24,00,000 25,50,000 27,00,000
Repairs & Maintenance 5,06,000 5,37,625 5,69,250
Power & Fuel 50,60,000 53,76,250 56,92,500
Other Overhead Exp. 50,60,000 53,76,250 56,92,500
Depreciation 27,67,500 23,52,375 19,99,518
Production Cost 6,63,53,500 6,99,12,500 7,35,33,768
Administrative Expenses
Salary 26,40,000 27,72,000 29,10,600
Telephone Exp. 1,01,200 1,07,525 1,13,850
Stationery 6,07,200 6,45,150 6,83,100
Marketing & Dist. Exp 80,96,000 86,02,000 91,08,000
Packaging and designing 75,90,000 79,69,500 83,67,975
Miscellaneous Exp. 50,60,000 53,76,250 56,92,500
Administration Cost 2,40,94,400 2,54,72,425 2,68,76,025