First Choice Company

First Choice Companys mission is to make, distribute and sell the finest quality products in a wide variety of innovative style to operate the company on a sound financial basis of profitable growth, increasing value for our stakeholders and create career opportunities and financial rewards for our employees. To operate the company in a way that actively recognizes the central role that business plays in a structure of society by initiating innovative ways to improve the quality of life of a broad community.

Smart Candy

First Choice Company

Executive Summary
First Choice Company (PVT) Ltd. is new comer company in the industry of food. First choice companys primary line of business is the manufacture and sale of sugar free candy named as smart candy. This candy is targeted to three segments, weight conscious people, sugar patients and kids. The smart candy will be approved by Ministry of Health Pakistan. So that the target segments will use it without any fear. Founders believe on opportunity exists in food industry because there is no such candy available in the market. So there is no competition available for the company in the market. Company at initial stage will provide free sampling of smart candy to get confidence of target segments. Company at initial stage will operate in Pakistani market only. Expected sales volume of company for first year will be 1,00,000 packs of candy, each pack will contain four dozens of candy. Break even is at 48,000 packs and growth is 4 to 6 percent. Initial market research has been encouraging. Research from all target segments has been conducted. A supplier selection is complete and the company has secured production facilities in west corner of Faisalabad.

Smart Candy

First Choice Company

Introduction
The Industry Our product is fall in food industry. In food industry many opportunities exist. No company has introduced the sugar free candy so, we find that it is rationale opportunity to introduce a different product as sugar free candy named Smart Candy. In food industry highly competition is there and need high struggle for survival. After the success of our smart candy we shall introduce other product as same industry for long term survival and capture the shares of the market. The Company First Choice Company is producing Sugar Free candy and specially targeting diabetes patients and weight conscious people. There are several food companies which are producing various tastes of candies but our Unique Selling Proposition is sugar free and providing delicious taste to our customers. According the current growth rate of this disease no company was producing this kind of candy.

Smart Candy

First Choice Company

We are making efforts to adopt all new technologies so that it can save time and cost and give better quality products to customers according to their requirements. For kids chocolate candy is attached at lowly pop at the end of Led pencil for their attraction. We have made commitment with a pencil manufacturing company. Our Main purpose is not only producing this candy but also build long term relationship with customers for survival of company and gain loyal customers base through customer centric business.

Trade Mark: The Product Our product is tangible including some innovative features. Generic name of the product is Smart Candy .Our product is specialty good. After survey we conclude that there are large number of users to adopt this product. Our product Smart Candy is categories based product. Its idea already exists in the market but we introduce new characteristics in this product. That does not exist in the market. Our product has different features and it has its own identity. The consumer is willing to forego accessible substitutes to search for and purchase the desired brand. There are lots of different brands but we are developing a new innovative brand with the help of New product Strategy.

Smart Candy

First Choice Company

Market Research & Analysis

Smart Candy

First Choice Company

Market Research and Analysis

Smart candy from the house of First Choice Company (PVT) Ltd. Will have two major target segments, weight conscious people and sugar patients, however company will also target kids who love to eat candies. Following is a description of major characteristics of each: Sweet is a major instrument that results the increment in weight of people. Currently in the market no candy was available that was for weight conscious people. Smart candy is one that will definitely help weight conscious people to control their weight. There is no age limit, they may be of 25 years or so on age. Smart candy will provide satisfaction to all weight conscious people. As the name suggests sugar free smart candy the next target segment will be sugar patients. Sugar patients they are bound to cut-off from any sweet items. They have very few options regarding food items because more than 90% have sugar inside. The disease of diabetes is mostly find in people who have 40 or more years of age. When they look any person eating sweet items they cry to eat it also. Smart candy will provide them a unique taste that will not be harmful. They can use it without any fear because it will be approved by ministry of health Pakistan. Kids who are always found of eating candies will also be a target segment. Smart candy from the house of First Choice Company (pvt) Ltd will also provide a special benefit to this segment, candy will have no side effect on the teeth of kids. Other sweet candies have side effect on the teeth of kids thats why parents do not allow them to eat such candies but smart candy will free from such side effect because ministry of health Pakistan will approve it.

Findings of research Conducted from Target segments:

1. Weight Conscious People

Total People 100

In favor of Candy 75

Against Candy 20

No Response 5

Smart Candy

First Choice Company

5% 20%
In Favor Against No Response

75%

2. Sugar Patients Total Patients 100 In Favor of Candy 90 Against Candy 8 No Response 2

8%

2%

In Favor Against No Response

90%

Smart Candy

First Choice Company

3. Parents of Kids

Total Parents 50
8% 14%

In favor of Candy 39

Against Candy 7

No Response 4

In Favor Against No Response

78%

Smart Candy

First Choice Company

Marketing Plan

Smart Candy

First Choice Company

Marketing Plan

Advertising and Promotion Advertising and promotion strategies are linked directly to the channel being targeted. End user sales will be sough with print media, electronic media and out of home (OOH).

Print Media News papers it is most popular and power full media of advertising. We decide to run blind campaign for the promotion of our product smart candy through news paper. The coverage of print media is easy for rural area and directly approach to customers. We shall produce attractive ads through agencies. Company also introduce smart candy in magazine like Sunday Magazine. Following news paper select for print media as fallow: Jang Newspaper Local Newspaper in all cities Sunday Magazine

Electronic Media Electronic media is good choice to communicate their message among their target audience. In geography we want to introduce the product all over the country (Pakistan). So, TVC is the best option. In TVC national and local channel select for advertisement. Company also has priority to introduce the smart candy on internet because users of internet increase day by day. Following channels select for TVC ads as fallow: PTV Geo Cable channels

Smart Candy

First Choice Company

Advertising Plan
Advertising Budget (100%)

Print Media (30%)

Out of Home (20%)

Electronic Media (50%)

Newspaper (20%)

Magazine (10%)

Points of Purchase (10%)

Television

(45%)

Internet

(5%)

Promotion: We are on introductory stage, so any urgently need of promotionally policies. First of all introduce our product through different communication options. If advertising strategy will not properly support to the product then we shall make different strategies for promotion. It is advantage that there is not competitor in sugar free candy. So, we shall easily promote our smart candy in to the market. We can give discount to distributor and retailer. Company has a plan to held survey about their smart candy time to time for create strong relationship with their customer. We also give incentive and compensate to our sales persons for better services. After the passage of time Company introduce different schemes for distributor, retailer and end users.

Smart Candy

First Choice Company

Distribution: The different environments in markets force to adjust their distribution system, because marketing institutions, such as various types of retailers are responses to the environment. They can also provide an opportunity to experiment with new strategies. We use two level distribution channels. This smallest distribution channel is manufacture to distributor to retailer to end-user. Because we want our product use many consumers with less problems and easily. We select indirect distribution channel for better management and less taking risk as: Distributor End User

Manufacture

Retailer

Various aspects of physical distribution in marketing are quite different from anything found on the domestic scene. Physical distribution expenses account for a much large share of the final selling price in foreign markets than in domestic

Smart Candy

First Choice Company

Manufacturing & Operation Plan

Smart Candy

First Choice Company

Manufacturing plan
FCC will locate in west outside the Faisalabad city where the price of land is empty and the entire infrastructure is available. And there will be no issue of environment because the land is situated out side the city. Second reason for the selection of the land is that the cheap labor will be available from the nearest villages. Third will be that we can expand the factory in the future. Fourth reason to select this land is that supplier can easily reach and the finished goods can easily distributed to the retailers because the land is out of city but every on can easily approach the factory. All if these factors would help to reduce the cost of goods sold directly it would help to increase the profit of the company. Manufacturing policy First of all intensive training will be giving to the employees so that the wastage of raw material reduced. And it will also help full to meet the international standards. For that purpose contacts will be made for those companies who will engage in this field. Second our inventory system is based on the FIFO system. State of the art technology is imported from the china. And the foodstuff, which will be used in the process, is passed from the food department and also according to the international standard standards. Operating cycle The operating cycle will short because the candy cannot remains in store long time built for that reasons to decrease the problem of storage and increase the life of the candy in summer the air conditioned storage will used. For that reason our inventory system will consist of five days one day for order second day for shipment and third day for the manufacturing and fourth and fifth day for distribution.
Order received

Distributed to wholesalers

Order to supplier

Smart Candy

First Choice Company

Goods
manufactured

Suppliers selections Best suppliers will be selected who will supply the material to the largest candy manufacturers. But we will purchase the raw material at low cost as compared to the others manufacturers .to increase our relative bargaining power we will chose at the time four suppliers for all these contents used in the manufacturing. This cause our low cost of production and also increase the profit of the company. As we use the state of the art technology in the factory so our complete operation will be computerized from the begging. Order processing, Manufacturing, accounting m and purchasing will be automated. Thats why we will choose the suppliers who are the international certified who will meet our requirement.

Smart Candy

First Choice Company

First Choice Company Management

(FCC)

Smart Candy

First Choice Company

FCC Management
The management team of FCC consists of such persons who have very good academic records and all members have MBA degrees from University of Agriculture Faisalabad and experience in their relevant fields. FCC is making a candy which is without sugar but people are in the habit of eating candies full of sugar and this is the responsibility of management team to make this company successful by getting the success of sugar free candy in the market. FCC's Board of directors is listed below: Board of Directors

Key executives by function: Products

Sales

Legal Advisor

Mr. Shahbaz Ali, Advocate

Finance

Business Operations Auditor of FCC

Riaz Audit Company

FCC's Banks

United Bank Limited Meezan Bank Limited Fysal Bank Limited Habib Bank Limited Bank Al-Falah Limited

Smart Candy

First Choice Company

Break-Even Analysis Break even is a point where a company starts to get profit on selling its units and it is calculated as follow Break-even= Fixed Cost_____________ = Units Sale price per unit-Variable cost per unit

FCC has its break-even on the sale of 48000 packs of its sugar free candy and the company will get its profit on sale of its 48001st unit for year 2009. Rs.

Smart Candy

First Choice Company

Critical Risks At present the all industries in Pakistan is facing many risks and problems

Increasing cost of production Now its a market trend that price is increase day by day rate of variation in price increase so, in future the price of raw material may increase and its effect our per unit cost and company should increase the price of product. So this risk may decrease the share of the company.

Increasing fuel prices In a world market the prices of the fuel increase day by day. Fuel price affects the price of other products. Our transportation cost will be increased and raw materials also increase. So this type of risk does not ignore by the company.

Shortage of energy resources In future a hazard of energy resources, if electricity short then it disturbs all the operation of the business and we must plan for hurdle in the process of production. It will also become the cause for increasing the price of the product.

Political Instability This type of risk does not ignore by the company. Our business exists in instable political environment. So, instability of political environment

Smart Candy

First Choice Company

disturbs the supply and demand and become the cause to change the policies of the company.

Increasing labor cost It is a reality that per capita income increase by any fiscal year and government imposed that increase the basic salary of the employees. So, if labor cost increase its mean overall cost of production increase and affect the volume of the business.

Changing policies from Government When any imbalance condition government changes the policies. Its may relate to tax policy, import and export policy and etc. some time these changes favorable for company and some time unfavorable. So, the margin of this risk must be measure when making any strategy for business.

Chance of failure of the sugar free candy If all above risks occur and against the company then higher chance of failure of our smart candy. Consumer behaviors may be changed and vary from our research.

Smart Candy