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MARKETING PLAN: Madhu Wrap

SUBMITTED TO:

Prof. Aashish Argade

Submitted By:

Kush Chaurasia (P39077)

Prasoon Kumar (P39091)

Vipul Singh (P39117)

Sharadchandra Vilasrao Solunke (P39103)

Syed Mohammad Shaya (P39113)

Ujwal Narasapur (P39114)

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CONTENTS
SR. NO. PARTICULAR PAGE NO.

1 Executive Summary
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2 Market Size & Growth 4
3 Environmental Analysis
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4 Consumer Behaviour
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5 Need Identification and Product Characteristics
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6 Competitor Analysis
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7 Segmentation & Demand


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8 Marketing Mix(4Ps)
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9 Positioning
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10 Advertisement
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11 Financial Budget and Forecasts
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1. EXECUTIVE SUMMARY

We are planning to enter the market with a new product which is essentially a new food
packing material for keeping the food warm and fresh. Currently, close substitutes like
aluminium foils and other plastic wraps are available in the market. However, beeswax
coated cotton cloth acts as a superior food packing material which is fully bio degradable and
doesn’t affect the food quality. We are targeting specific segments in the consumer market.
The interest of population is growing in switching from the use of aluminium foils to better
sustainable materials in food packaging. Growing awareness of ill effects of conventional
foils on the food and the environment creates a need for a sustainable and eco-friendly
product in the market.

The marketing plan starts with overview of the market situation, growth and trends. We then
understand how environmental factors and consumer buying behavior creates a latent demand
for a new food wrapping product. Thereby we understand the competitor products already
existing in the market and do SWOT analysis to compare the product’s challenges and
strengths compared to that of competitors. Once we understand this we use 4Ps strategies to
gain entry into the market and consolidate the product. Product strategy aims to provide
intended benefits, pricing strategy is derived from value generation, intensive multi-channel
distribution with focus on spreading awareness through trade fairs and providing gifts is
implemented. Finally keeping all the strategies in context the product is positioned as better
valued non- toxic product as compared to Aluminium foil which can also be reused.
Advertisement and promotion strategies are devised keeping in mind homemakers of the
households who are the buyers and influencers in the market for such convenience goods.
highlighting

2. SITUATION ANALYSIS

The food and beverage packaging industry is a growing industry which encompasses both
industrial and home food packing. In the home food packing material industry, aluminium
wrap, followed by plastics and papers are the main packaging materials used by households
for packing homemade foods in tiffin. The choice of packaging material is significantly
influenced by the income of the households. The product focuses on the households involved

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in packing of home food for school children or for earning members in service sector
targeting medium to high income households thus making aluminium foil brands as the main
competitor.

2.1 Market Summary:

Our market includes people who wish to use healthier, environment friendly and reusable
means of food packing.

2.1.1 Market Size and growth

The food and beverage packing industry as a whole includes both industrial and home food
packing. The aluminium foil industry is India has been increasing with a CAGR of 4.3%.
India imported 1, 42,603 tons of aluminium foil in 2016.

Anand is a city with population of 209,410 and is home to many renowned educational
institutes with a literacy rate of 89.68%. It is the 8th largest city in Gujarat by population with
44603 households. Thirty four percent of the total population of Anand is engaged in work or
business activity thus creating a market for food wrapping. The potential market for the
product is all the households, firms and restaurants that use packing material for packaging of
cooked food for storage or transportation. The target market identified initially is all the
households using packing material for packaging home cooked food for either the earning
household member or school going children.

The home food packing material industry has been growing over the years because of
increase in number of school going children and number of people employed in service and
business sector. There are many factors which are driving the demand for home food
packaging material in the market. As the standard of living improves, more households are
opting for packing foods with a good packing material so that it remains warm and fresh.
Another variable contributing to the market growth of aluminium foil industry is the growing
preference towards homemade foods by the working professionals employed in business and
service sector.

2.1.2 Market Trends

From the survey conducted of 60 respondents we found that 65% of the households surveyed
used aluminium foil, 21.67% of the households used butter paper or tissue paper and 13.33%
didn’t use any kind of packing. In the target market identified, the buyer of the product is the
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homemaker and earning member of the household. The users will include the school going
children and household member employed in service or business sector who take home
cooked food to office.

3. ENVIRONMENT ANALYSIS

Marketing environment is the combination of external and internal factors and forces which
affect the company’s ability to establish a relationship and serve its customers. While internal
environment can be controlled, the business has very less or no control over the external
environment.

3.1 Internal Environment

The internal environment of the business includes all the forces and factors inside the
organization which affects its marketing operations. There doesn’t seems to be any internal
threat as far as Madhu Wrap business is concerned and if any issue arises it can be easily
controlled.

3.2 External - Macro Environment

The external environment comprises of the outside forces and factors that affect the business.
The Macro environment in the case of Madhu wrap affects the business but not directly.

3.2.1 Demographic Environment

An average Anand household consists of five members. The family size is an important
factor which will determine the consumption of our product. A family of 5 members will
have 2-3 users of our product- School and college going children, office-goers. Education
level of the family members is also an important factor. Awareness about the ill effects of
aluminium foils will lead to purchase of our product as our product is fully natural and
environment friendly. Women are the usual buyers of groceries in Anand households. So,
gender will also impact our business. Grabbing the attention of females should be our focus.

3.2.2 Economic Environment

Consumer income is an important factor which will affect our product purchase. As the
product is higher priced than aluminum foil, initially only the families who are using
aluminium foils can be targeted.

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Though in the long run our product will be cheaper but it requires a higher initial investment.
From our survey, with the positive responses we got it can be seen that the people of Anand
understand that the product has better total cost of ownership compared to foils.

3.2.3 Socio-cultural environment

The socio-cultural environment seems positive for our business as from our survey we were
able to conclude that Gujarati’s are sensitive towards the nature and understand how the
aluminum foil is affecting the environment.

3.2.4 Natural environment

The alternative of Madhu wrap, aluminium foils has a negative impact on the consumers and
the environment. It poses threat to human health and research has found that higher
concentration of aluminium is detected in the brain tissue of patients with Alzheimer’s
disease. Aluminium is also harmful to patients with bone diseases and also reduces the
growth rate of human brain cells. Also, it is found that aluminium affects male fertility.
Aluminium also affects environment as it cannot be easily recycled. Aluminium waste adds
to soil pollution as well. Madhu wrap on the other hand is the answer for all the questions. It
is environment friendly made from bee wax and cotton, which is the USP of our product.

3.2.5 Politico-legal environment

The product needs ISO 9001-2003 certification to be rolled out in the market. Apart from this
pollution certificate, trademark registration is also a must for launching our product.

4. CONSUMER BEHAVIOR

It is very important to understand consumer behavior to position any product. Our product is
positioned as reusable, biodegradable, environment friendly and sustainable food storage
wraps. These positioning factors have an effect on consumer behavior. To build consumer
engagement, we looked upon cultural, social and personal factors of our buyer.

4.1 Social Factor

Gujarati’s have a tendency to always be a part of social groups. People discuss things and
hence word of mouth plays a big role in initial consumer awareness of our product. Hence,
primary reference group is an important factor which should be considered. The purchase

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decision of the families majorly lies with the homemaker. It shows the influence of family of
procreation.

4.2 Personal Factors

Personal factors affect consumer behaviour in purchasing our product is income and
occupation. Under income, our target markets are consumers who are classified as upper
middle class and upper class. In occupation, our target consumers are the households whose
family members are employed in service sector. Our respondents constituted of 46.67% in
service sector and 53.33% in business sector.

4.3 Cultural factor

Cultural factor consists of social class and religion. Religion will have no role in influencing
consumer behaviour. The target population in Anand consists of Gujarati’s. Culturally
Gujarati people are food lovers and majority of households are vegetarians. Both these factors
will positively influence our product.

5. Need Identification

Upon seeing how the marketing environment and consumer behaviour creates positive latent
demand for a new food wrap it becomes easy to articulate the need identification for the
product.

The food packing material industry has two core principles as its central theme: protection
and preservation. Aluminium foil as packing material keeps the food warm and is easy to use.
However, many studies suggest that the use of aluminium foil for wrapping food is harmful
for health as many a times seeping of aluminium into the food takes place specially if the
food is hot or has acidic content. Aluminium foils are also used as one time packing material
and thrown after the food is consumed. This creates a lot of non-biodegradable waste which
harms the environment. Owing to increase in awareness towards health and environmental
issues many consumers are reluctant to use aluminium foil as a food packing material. This
creates a latent demand for a product which serves the basic function of keeping the food
warm and fresh and is healthy to use without harming the environment.

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5.1 Product Characteristics

The product will satisfy all the basic criteria of good packing material like keeping the food
warm and fresh. The wraps would last up to 6-12 months and can be used to cover almost
anything that cling wrap can cover. The wraps are reusable and completely bio degradable
which does not harm the environment.

The product does not affect the quality of packed food in any way as it contains no artificial
chemical or coating of metal. The wraps are made with organic cotton and coated with a
blend of organic beeswax, resin, jojoba oil and coconut oil.

Madhu wrap will be available in two sizes, a four pack kitchen wrap and three pack school
lunchbox wrap catering to different requirements of the households.

6. COMPETITOR ANALYSIS

Consumers in the food-packaging industry have been using the following alternatives to pack
and store food:

1. Aluminium Foil
2. Cotton Cloth
3. Parchment Paper (Butter Paper)
4. Newspaper

According to our survey, of the above-mentioned alternatives, 65% of the consumers prefer
Aluminium Foil over other alternatives and hence it turns out that Aluminium Foil industry is
our major competitor.

Nutriwrap by Gujarat Foils Limited and Freshwrapp by Hindalco Industries Limited (Aditya
Birla Group) are the two brands which make up the Aluminium Foil market (Consumer
Product Division) in Anand, Gujarat.

These two brands can be independently analysed based on market share, diversity in brand
offering, distribution channel, positioning.

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Nutriwrap

Brand offering: This brand offers house foils (72 m) and cling films to cater to the food
packing needs of the customers.

Distribution Channel: It is available for purchase in the general trade markets which
comprise of supermarkets namely Big Bazaar, Reliance Fresh, Star Bazar. Bigger pack sizes
are mainly sold to institutional markets such as hotels, restaurants, food outlets etc.

Positioning: This brand mainly targets households in urban and semi-urban areas, where the
households are experiencing change in lifestyle which influences their cooked food handling
and packaging practices.

Market Share: Nutriwrap holds the minority share in the market with 23.07% of households
using it.

Freshwrapp

Brand offering: This brand offers a range of products; Freshwrapp Foils, Freshwrapp Kitchen
Pack, Freshwrapp Bacteria Control Aluminium Foil, Freshwrapp Heavy Duty Aluminium
Foil, Freshwrapp Pre-Cut Sheets.

Distribution Channel: It is available for purchase in the general trade markets which
comprise of supermarkets namely Big Bazaar, Reliance Fresh, Star Bazar. Bigger pack sizes
are mainly sold to institutional markets such as hotels, restaurants, food outlets etc.

Positioning: With variety of products being offered for household use, this brand targets post
cooking and cooking handling practices in urban and semi-urban areas.

Market Share: Freshwrapp holds the majority market share with 66.67% of households using
it.

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Thickness Width (mm) Length (m) Price (INR)
(microns)
Nutriwrap 10-18 300-450 72 390

Freshwrapp 11 300 9/18/72 69/136/386


Foils

10Freshwrapp 11 300 36 185


Kitchen Pack

Freshwrapp 14 300 9 100


Bacteria
Control
Aluminium
Foil
Freshwrapp 14 450 20 476
Heavy Duty
Aluminium
Foil
Freshwrapp 11 300 250
Pre-Cut
Aluminium
Sheets

Table 1: Products and Pricing of Aluminium foils in the market

6.1 SWOT Analysis

Upon understanding the nearest competitors we have used the SWOT analysis framework to
evaluate our company’s competitive position with respect to competition by analysing its
strengths, weaknesses, opportunities and threats. While the strengths and weaknesses present

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the internal environment, the opportunities and threats have helped us peek into the external
environment and devise further strategies accordingly.

Strengths

Reusable- Madhuwrap comes as a reusable substitute to aluminium foil. Every patch of


aluminium foil torn to wrap food products needs to be discarded and needs to be replenished
as a part of household groceries every month. Once bought, our product can be used through
the year which brings it as a one- time investment. Even when discarded after a year’s use, it
comprises of biodegradable waste as the basic raw materials constitute a cotton cloth and
bees wax.

No toll on health- Aluminium foil induces aluminium content into the food it wraps which
poses threats to human health. Studies have suggested that high aluminium intake may be
harmful to some patients with bone diseases or renal impairment. It also reduces the growth
rate of human brain cells. Madhuwrap is prepared with natural ingredients such as Beeswax,
tree resin and jojoba oil which does not take a toll on the human body.

Easy to use- The product is easy to use, wash and reuse again. There is no hassle of tearing
the product from a box as is the case with aluminium foil. Our product is available in various
size variants and holds the shape of the utensil or the food it is wrapped upon. Thus, it
prevents the food from soiling, keeping it fresh for a long time.

Biodegradable- Aluminium foil generates huge amount of waste per household since it has to
be thrown after every use. Aluminium foil, though recyclable are not usually accepted by
recycling centres since they are contaminated with food waste. Madhuwrap is 100%
biodegradable leaving traces of concern for the environment as well.

Weakness

Costly- A set of three wraps in a package would cost 200 INR which seems to be expensive
for customers who are used to buying aluminium foil at a price of 95-100 INR. However, the
foil just runs for a month in an average household of 4 members leading to a recurring
expenditure. Hence, one of the threats of our product would be a costly spend. Though, the
perks of a one- time investment per year would stand by it.

Unaware Customers- One of the threats also includes customers unaware of the ill effects of
aluminium foil and the availability of its substitute. We would require adopting a ground root

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marketing strategy to educate the customers about our product and also generate an
increasing demand for it.

Opportunities

Substitute to aluminium foil- The food packaging industry is growing at a CAGR of 4.8%.
From our survey, we found that 8 out of 10 households use it for packing food. Madhuwrap,
being launched as a substitute to aluminium foil has a great potential and opportunity to tap in
the market.

Increasing environmental consciousness- With increasing consciousness about the


environment and changes in the natural environment, Madhuwrap as a reusable, recyclable
and biodegradable product comes with an opportunity of greater acceptance from the society
and target market.

Growing trends of health consciousness- There have been growing trends of health
consciousness among the urban population which has been leading them towards healthy
food habits. When people look up to better food consumption, there emerges a simultaneous
market for healthy food packaging too fetching opportunities to tap into this market.

Better standard of living- With better income generation opportunities in our target region of
Anand, Vadodara and Ahmedabad; there has been an increase in the standard of living of
people which leads to increased demand for better quality and hygienic products for use,
especially in the kitchen even with higher prices. This poses an opportunity for Madhuwrap
to enter the market and gain the first mover advantage.

Threats

Technological changes in the existing food packaging industry- Madhuwrap faces a threat
from better quality bio-degradable products sprouting in the market in the existing aluminium
foil industry. If the established players come with products which do not take a health toll and
are biodegradable, Madhuwrap would face threats to adapt with these technological changes
and keep developing the product.

Low entry barriers- The easy process technology involved in manufacturing this product
brings along low entry barriers to this product which may attract competitors over time.
Madhuwrap would have to maintain and enhance its competitive advantage to retain its share
in the market throughout.

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The key takeaway from SWOT analysis is identifying the challenges to be faced by Madhu
wrap in capturing market and the strengths the product has which has to be leveraged against
the competition.

7. MARKETING STRATEGIES

Strategies used in our Marketing Plan primarily focuses on market segmentation and target
demand. The product Madhu wrap is new product in existing food and packaging material
industry, so we need to pitch in and make consumer aware about the product.

a) Segmentation and demand


Segmentation is based on the following parameters-
1. Geographic- Our marketing plan focuses on the limited area of Anand City,
Gujarat State.
2. Demographic- From our market survey we found that people employed in
service sector are more inclined to buy madhu wrap because of their good
standard of living. Family size of the household determines the consumption
pattern of the wraps and small Madhu wraps product portfolio suits well with
medium family size of 4-5 members. Educational qualification of the buyer
also has a major role to play in purchasing decision of Madhu wrap.
3. Personality- Buyer and user are different in the case of Madhu wrap, Buyer is
primarily housewife and users are children, working person, and other
members in the house.
4. Awareness- Madhu wrap is a new product in an existing market. The primary
aim is to target switchers and convert them into hardcore loyals.

The potential market for Madhu wrap includes all the households, bachelors and high end
restaurants in India. The available demand is limited to the area of Anand as per the given
constraint. Out of the available market our target is to cover the households in Anand using
food packing materials.

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8. Strategy to capture the market: Marketing Mix

After identifying the target market and understanding the competition and competitor
products in the market we will move to formulate strategies as to how to capture the market
and introduce our product. Marketing mix which consists of 4 Ps namely product, price, place
and promotion will be used as a reference to successfully design overall strategy for
launching the product in the market and gaining some market share.

8.1 Product Strategy

Product strategy is further subdivided into analysis of product fit, value proposition offered
and available packaging and size options.

Product Fit

First we will highlight the points of parity and point of difference for Madhu wrap.

POP: Food wrapping material which keeps food warm and fresh, easy to use, can be used to
pack different types of food, affordable.

POD: Non-toxic doesn’t harm the food in any way, reusable, biodegradable.

We can understand how by satisfying the points of parity and difference Madhu Wrap will be
able to cater to the needs of the marketing environment in general and match the consumer
behaviour pattern in particular.

Demographically Madhu wrap will cater to medium sized family in Anand with the product
offering targeted to households with school going children and working professionals who
prefer to take home food Madhu wrap. The product can be sold with a price over and above
the Aluminium foil price in the market taking advantage of the overall better economic
conditions and higher purchasing power of the targeted households.

Madhu wrap can also be sold taking advantage of the consumer buying behaviour of the
target population. Being a convenience good used by homemakers, good social bonding and
prevalence of word of mouth publicity makes Madhu wrap cater to customer’s needs. Madhu
wrap being reusable, non-toxic and environment friendly will also generate demand and take
advantage of the fact that the target customers are health conscious, have the propensity to

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spend on quality product keeping long term profitability in mind and are aware of
environmental issues.

Thus favourable environmental factors and positive consumer behaviour makes Madhu Wrap
a viable fit for the food wrapping market.

Product Values

Madhu wrap as a product offering can be better understood if we look into the following
product levels:

I. Core Benefit: The core benefit of the product will food packaging to keep the food
warm and fresh.
II. Basic Product: Madhu wrap is a beeswax coated food packaging material which is
easy to use and keeps the food warm and fresh.
III. Expected Product: Madhu wrap as a food packaging material can be used to pack all
types of food materials and is easy to pack and carry. The wraps come in three sizes
and in attractive colors and designs to cater to different customer requirements.
IV. Augmented product: Unlike Aluminium foil Madhu wrap is completely non-toxic to
food and can be easily used to pack acidic and oily foods without affecting the food in
any way. The product is also completely reusable and can be washed and reused for
period of one year.

Packaging and size options

Madhu wrap is offered in three sizes: 8×8, 11×11, and 14×14 inch squares. This is done to
provide flexibility to the customer for wrapping different varieties food.

8.2 Pricing Strategy

Pricing Objective: The objective of price setting for Madhu Wrap is based on value
generation. The price of the nearest competitor which are brands selling aluminium foil will
be used to provide reference pricing to the customers. The delta price over and above the
price of aluminium foil will signal the customers of the better quality, non-toxic nature and
reusability aspect of Madhu wrap thus generating value based pricing. The price set for a
pack of Madhu wrap will be Rs 250.

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Total Cost of ownership: To deal with the problem of high price and low demand the product
will be marketed based on the concept of minimum total cost of ownership. An average
household (family of three) consumes one roll of aluminium foil in a month thereby spending
Rs 150. Annual expenditure amounts to Rs 1800. In contrast Madhu wrap costs only Rs 250
and can be used and reused for a period of one year.

8.3 Placing Strategy

This section will link the product to consumers by identifying the correct point of purchase.
Madhu wrap is a convenience product and a consumer good. Due to the impulsive buying
behaviour intensive distribution strategy will be followed. Availability and visibility of the
product on the shelves of the retail store is a priority to cater to this type of buying behaviour.
Because of the new product push strategy will be followed to create latent demand in the
market through promotion and advertisement. Since the product will cater to households with
homemakers using the product multi-channel distribution system will be followed. The two
channels selected are selling through retail markets and direct selling. Retail stores, grocery
shops, supermarkets etc will be targeted for pushing sales of Madhu wrap. Apart from this
dedicated sales team will push for direct selling by going to households. This is done as the
product is new and being targeted for families of procreation where the homemaker is the
major influencer or buyer for household goods. Thus in this case awareness of a health
friendly, reusable food wrap is a must in localities as positive word of mouth can greatly
enhance first time sale.

8.4 Promotion

Since Madhu wrap is a new product creating awareness among the customers is the most
important step which needs to be taken. Informative advertisement will be done in different
ways as mentioned below:

 Trade Fairs: Exhibitions of Madhu wrap in localities, housing societies and near
marketplaces will be done to generate awareness and convey the benefits of using
Madhu wrap over aluminium foils.
 Assigned gifts: Madhu wrap will be sold along with gifts which will be mostly
kitchen items as we are targeting the homemakers of the house who are the buyers
and influencers. While promoting the product, family of procreation as the targeted
households needs to be kept in mind.

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The incentives can be passed on to customers through retail purchase as well as through
direct selling. Apart from the trade fairs direct selling will act as a powerful tool for creating
awareness for the product.

Advertisements of the product along with offers of assigned kitchen gifts will be made in
local Anand newspapers and local TV channels.

9. Positioning

Positioning is a tool to influence customer’s attitude so that he changes his behaviour in using
the product. Customer’s attitude of using a food wrapping material to keep the food warm
and fresh needs to be targeted here. Madhu wrap will be positioned as a superior alternative
to aluminium foil for food wrapping. Positioning will revolve around the two main
distinguishing features of non-toxicity to wrapped food and reusability which makes it
different from its nearest competitor. It will be showcased as a good quality long lasting
product which is much safer for wrapping food for children and adults which will create
value in customer’s minds and may help facilitate the customer to pay extra price over
aluminium foil for the quality of product. The value perceived by the customer will lead to
repeated buying and recall.

10. Advertisement

Advertisement in print media and local televisions is designed on the base of negative
marketing of aluminium foil with showcasing the added benefit of reusability provided by
Madhu wrap. Madhu wrap is first positioned as a non-toxic food wrapping material compared
to aluminium foils which are harmful for health. Thereafter the reusability aspect is enforced.
This is done due to high sensitivity of homemakers who are our buyers and/or influencers
towards providing best quality healthy food to their family members.

11. Financial Budget and Forecasts

Sales Forecast

Anand city has 44603 households. Thirty four percent of the total population i.e., 15165
households of Anand is engaged in work or business activity thus creating a potential market

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for our product. Sixty five percent of which i.e., 9857 households is our target market as this
share is enjoyed by aluminum foil market.

Our product comes in a pack of 3, with wraps of size: 14*14, 11*11, 8*8 inches. The product
is priced at Rs. 250 a pack. As our target market is the aluminum foil market, the expected
revenue from Sales is estimated to be Rs. 24,64,750 (9857 households x Rs. 250/each).

Costing

The product to be made requires raw material which are, Cotton cloth, Jojoba Oil, Powdered
Pine Rosin, Beeswax. The cloth needs to be cut and stitched in all 3 sizes which will be
packed together. It would involve labour cost, packaging cost. Also, heating equipment is
required to heat the mixture which will be applied on the cloth. The production is being done
in our private property hence doesn’t involves any rent but electricity charges have been
included.

The calculations for cost for the first year is estimated and shown in the table below.

Particulars Amount (Rs.)

Raw Material Cost:


Cotton Cloth (4930m2 * Rs.48/m) 236640

Jojoba Oil 431923

Beeswax 76485

Powdered Pine Rosin 38503

Packaging Cost (9857 boxes * Rs. 1.2) 11828

Labour Cost:
Tailoring – Cutting – Rs. 37000
- Stitching – Rs. 129500 166500

Applying & Packaging 50000

Fixed Cost:
Electricity Charge 36000

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Heating Machine 10000

TOTAL COST 1057879

The tailoring involves two work cutting and stitching. The labour employed for cutting is
expected to cut the required 4930m2 of cloth in 74 days, with an average of 400 pieces per
day. He will be paid a daily wage of Rs. 500. The person who will be stitching is expected to
stitch 160 clothes on an average per day hence will be taking 185 days to complete his task.
He will be paid Rs. 700 per day. The applying of melted liquid on the cloth and packaging
will be done by a single labourer who will work for 93 days and will be paid 50,000
combined for the 2 jobs. Casual labourers will be employed to perform these tasks due to the
limited sales demand. Hence, they will be paid on a daily basis. Full time labourers will be
employed as the business will grow into new cities and states.

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