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We are into the business of fresh juice vending machines. We will penetrate the vending
industry with first to market high quality vending machines. Our product includes squeezer of
fruits and thereby providing fresh juices to the customers. Our target customers include
educational institutions, offices, hospitals and shopping malls. We are providing vending
machines that give the customers fresh juices in an instant to the customers.
The proposed design of the product provides a transparent working system showing the
whole vending process to its customers.
The firm will be registered under The Partnership Act, 1932. The business will have 4 owners
who provide the initial capital required for the firm. The profit will be divided among the
partners in an equal ratio. A part of the profit will be kept as Reserves and Surplus which can
be used for further expansion of the business.
As it is a start-up, the business plans to manufacture and sell 50 units in the first year. In this
busy world, people do not have time to take care of their health. They seek junk foods and
soft drinks like Pepsi, Coca-Cola, etc. as their diet. As a result, their health is deteriorating
day-by-day. So it is easy to get the attention of the people when we provide fresh juice
within seconds. In the future, the company will have competitors, so the business has to bring
innovative ideas in the coming years. As of now, in the first few years, we won’t face tough
competition.
1
General Company Description
Name: Frugoes
Logo
Tagline
Get juiced health induced
Vision
To be the number one company providing healthy juices in vending machine.
Mission
Our mission is to be the leader in introducing innovative quality vending machines. We
intend to give a machine that is user friendly and easily operatable by people that provide
100% natural freshly squeezed juice anywhere. We wish to inculcate healthy drinking habits
among the people. Design, technology, functionality, robustness and excellence in quality;
that is our commitment.
Goals
To provide a vending machine that gives fresh readymade juice.
Objectives
1. Sell 40 vending machines
2. Directly place at least 10 vending machines that we would be operating
3. Grow our business by 20% each year
Business Philosophy
To deliver quality healthy drinks to our customers at a reasonable rate. We will be marketing
our products to schools and offices. We will be providing fresh juices instead of cold drinks
thereby promoting healthy drinking habits among students and employees.
2
Industry
Electronics industry
The electronics industry emerged in the 20th century and has now become a global industry
worth billions of dollars. Contemporary society uses all manner of electronic devices built in
automated or semi-automated factories operated by the industry.
The electric power industry began in the 19 th century and this led to the development of all
manners of inventions. Gramophones were an early invention and this was followed by radio
transmitters and receivers and televisions. A large part of the electronics industry is now
involved with digital technology.
The industry now employs large number of electronics engineers and electronics technicians
to design, develop, test, manufacture, install, and repair electrical and electronic equipments
such as communication equipment, medical monitoring devices, navigational equipment and
computers.
The food and beverages industry is all companies involved in processing raw food materials,
packaging and distributing them. This includes fresh, prepared food as well as packaged food,
and alcohol, and non alcoholic beverages. Any product meant for human consumption, aside
from pharmaceuticals, passes through this industry.
Due to the economic meltdown, consumers are looking to save as much money as possible.
One major way that consumers are doing so is by purchasing more generic foods and making
their own meals, not going out to eat. This is causing food processing companies to become
more innovative to decrease the cost of goods sold, attract more customers, and increase
profit margins. The large amount of obesity in the world has a major effect on the food and
beverages industry. There has been an increase in the demand for healthy foods and more
informative nutritional labelling. Both of the trends have caused companies to release lower
calorie foods and to better control how their brand is viewed.
Companies want to be viewed as healthy brand and are promoting activities, such as youth
sports, that show this healthy image. There is also a mention of tax on foods known to lead to
obesity in order to curb consumer’s usage of them.
3
SWOT Analysis
Strengths Weaknesses
1. Quick service 1. Seasonal availability of fruits
2. Natural product 2. Low brand awareness
Opportunities Threats
1. Expansion 1. Electricity dependency
2. Competitive advantage over carbonate 2. Low profit margin due to purchasing
soft drinks cost
3. Health trend on the rise
The legal form of business is partnership. The capital will be contributes equally by the
partners. Profit and losses also will be shared equally.
4
Products and Services
Pricing
The machine is price at Rs 50,000 and the cost of 1 cup of juice will be as follows:
100 ml-Rs 10
200 ml- Rs 20
300 ml-Rs 30
The client can choose one size of cup from the above three options.
Maintenance charges for the first year will be free and then normal maintenance will be
charged at Rs 2,500 and it will vary depending on the fault. Additional spare parts can be
purchased by the client.
5
Interior view
The fruits are stored on top in a built cooler placed in the machine. As the customer places
the order the machine gets activated and the fruit from the cooler goes to the squeezer where
the juicing process takes place. The juice is poured into the cup that is placed below the
squeezer and the waste (peels) is transferred into the bin below. There is a water storage bin
at the bottom below the cup holding tray which is connected to the squeezer by a tube for self
cleansing.
Product
Frugoes is a specially made vending made with an inbuilt squeezing system for getting
freshly squeezed juices like orange, pomegranate and mosambi.
6
Parts
Fruit storage –
The machine includes a fruit storage which is able to store about 25 kg of fruit. It also
has an inbuilt refrigerator to keep the fruits fresh and safe.
7
Patented squeezing system –
The machine is being assembled by the best available squeezing system from
the company of Zumex.
8
Automatic cup system-
The machine comes with an automatic cup system for juicing process.
Payment methods.
The client can specify which type of payment mode he prefers does he need a 2 in 1 payment
system or just one of the above options
9
Working
The working of the machine starts with the payment option. One can use either the coin or the
cash system for the payment. The coin system accepts 5 Rs coins and 10 RS coins and the
note system accepts 10 RS and 20 Rs notes.
When the payment is done the button is pressed for the confirmation. This information goes
to the internal memory and the juicing process starts.
The fruits that are being loaded in the storage starts to move towards the juicer through a
small channel that is inbuilt in the zumex juicer and fall to the juicing system. The oranges
10
are now squeezed by the juicer. The LED display clearly shows the notifications of the
juicing process and the complete juicing procedure is being visible to the customers.
And the freshly squeezed juice comes out of the juicer and is being collected by the automatic
cup system by the machine.
The peels are collected by the waste bin that is being placed at the bottom of the machine and
can be removed manually.
The juicer is inbuilt with a small water pump for cleaning after each squeezing. It also
includes a manual pump for the cleaning of the machine parts.
11
Technical specifications
Voltage 230V-50Hz., 220V-60Hz., 110V-60Hz.
Power 1450W
Net Weight 250kg
Feeder capacity 25Kg
Serving Delivery Time 20-26 seconds
Glass Dispenser Holds 115 glasses
Stickers Front and side stickers as standard. Option to personalize.
Safety Door sensor. All mechanisms stop when door is opened.
Payment system Coins and notes
Unique features
Enables the customer to watch the entire juicing process from the moment they place
their order.
Automatic self-clean programme set to run after certain number of juices delivered or
time elapsed. The machine is fitted with 2 tanks that store the water for the automated
self-cleaning operation. Connector for water to be drawn direct from mains drinking
water supply
Easy to clean. Fully removable parts.
Information display shows machine’s operating status and price
Electronic temperature control. Refrigeration controller keeps interior cold including
peel, avoiding attracting insects.
Wheels that allow you to move the machine easily
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Marketing Plan
Both primary and secondary data are used for market research. A questionnaire was
distributed to college students, employees and heads of various institutions.
Secondary data was mainly collected from internet. Various articles about the vending
industry were read to gather information.
Market research
Market research is conducted on a continual basis to keep up with market trends and to
maintain a competitive edge. The primary research method used is three set of questionnaire
with 5 questions each to 100 respondents distributed among the employers, employees, and
students in Kollam and Trivandrum towns.
b) Setting of targets
From the information collected from the people we will be able to set targets in
areas such as growth, sales and further production.
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d) Identifying business opportunities
Research helps to identify new business opportunities. It is easy to identify
changing market trends such as pollution drifts, increasing levels of education or
leisure time which bring new opportunities.
Economics
Our target market includes:
1. Schools
2. Colleges
3. Hospitals
4. Offices
5. Malls
We would use direct marketing and test marketing methods to get consumer acceptance.
Shipping cost can be reduced as we will try to find suppliers within the country and hence
tariff barriers will also be reduced.
i. Change in technology
If we fail to update our machine with the latest technologies in the market then competitors
can grab the market.
Change in government policies may affect the day today activities of business.
Technology has revolutionized the way in the way business have work and if a new
technology is introduced it can severely affect the functioning of business.
Product
Features
Benefits
Customers
Competition
15
Our direct competitors include vending machines selling packet juices and cold drinks and
our indirect competitors include juice stalls and restaurants providing fresh juices
16
gain trust product market
and
acceptance
of customers
Location Kollam and Most Not Available Available 3
Trivandrum companies available almost almost
are located in other everywhere everywhere
here locations
Sales Direct Can keep Delivery Indirect Direct selling 4
Method selling direct may not selling
contact be very
with quick to
clients clients in
located far
*1 = critical; 5 = not very important
Niche
Ours is a technology related product so we are targeting corporate offices, colleges and
hospitals and malls. We would sell our products to the above clients and also provide direct
service.
Strategy
Promotion
We plan to spread the word through social media, news papers and by direct
marketing (giving away pamphlets at malls)
Promotional Budget
25,000
Pricing
The product pricing is carefully designed in order to penetrate into the market. We
have fixed the product cost as Rs 50,000/machine. For service each juice will be
priced at Rs 10, 20 and 30 for 100ml 200ml and 300ml cups respectively.
Proposed Location
We wish to sell our products and provide service to clients based in Kollam and
Trivandrum.
Distribution Channels
We do not wish to keep any intermediaries we will be selling our products to our
clients by way of direct marketing. This will reduce our channel cost and also help us
know the need of our clients better
Sales Forecast
17
Sales
450
400
350
300
250 Sales
200
150
100
50
0
2017 2018 2019 2020 2021
Operational Plan
Production
We are exporting our parts from Zummo a vending business company based in Spain and
will be assembling it in our factory which is located at Kollam.
• Quality control
• Customer service
We provide customer service to our clients who purchase the product as well as to the
consumers of our service.
• Inventory control
We place orders for the parts only once we receive the confirmation from clients and for
fruits (in machines that we will be directly providing service) we would go for go for JIT
( just in time delivery).
• Product development
Once all the parts are delivered the product will be assembled at our factory. It will be
customised to suit the needs of our clients.
Location
18
• Amount of space
Our product is very much compact and would not take up much place
The completely manufactured parts will be exported from Spain and will directly go into the
factory for assembling.
Working hours
Factory- 9 am to 5pm
Legal environment
The business is registered under the Partnership Act, 1912. The product will be patented.
Export duty also has to be paid as products are being exported from Spain.
Personnel
We will have around 15 employees including ourselves. There will be 4 employees for
assembling the vending machine, 4 drivers for transporting both the manufacturing parts to
the factory and the finished product from the factory to the end customer, 3 employees for
providing customer service. And the office work will be done by the partners.
Inventory
We place orders for the parts only once we receive the confirmation from clients and for
fruits (in machines that we will be directly providing service) we would go for go for JIT
( just in time delivery). So minimum inventory is kept with us.
Suppliers
1. Zumex group Pol. Ind. Moncada III-C/ Moli 2 4-46113 Moncada- Valencia- Spain
+34 961 301 251 zumex@zumex.com (Back up supplier)
Credit Policies
19
We allow our customers to pay by monthly instalments (only if credit worthiness is
satisfactory) otherwise the full amount has to be paid at the time of purchase. An advance has
to be paid when placing the order since we have to get the parts from our suppliers.
Aishwarya will be taking care of the HR department. She will be handling the problems of
the employees and will also ensure that the right person is put at the right job.
Sarangi will be dealing with finance and accounts of the business. She is in charge of
maintaining the financial records of the business.
Neethu will be in charge of the production of the business activities. She is control of
maintaining the stock. Quality control and management will be done by her.
Sruthi will be in charge of marketing. She will ensure that there is sufficient demand and plan
the market strategies. She will also look into the customer service. All customer service will
be handled by her.
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Accountant
Attorney
Tax Consultant
R Sreejith,
Tax Consultancy, RVCRA – 173,
Kollam.
Financial Plan
Financial planning means deciding in advance how much to spend, on what to spend
according to the funds at your disposal.
(i) Determination of amount of finance needed by an enterprise to carry out its operations
smoothly.
(iii) Determination of suitable policies for proper utilisation and administration of funds.
Balance Sheet
21
A balance sheet is a financial statement that summarizes a company's assets, liabilities and
shareholders' equity at a specific point in time. These three balance sheet segments give
investors an idea as to what the company owns and owes, as well as the amount invested by
shareholders.
22
Depreciation 10,000
Net profit before income tax 10,702.95
Income tax 3,000
Net profit transferred to capital account 7,702.95
23
Inventories 5,00,000
Cash in hand 5,97,000
Cash at bank 20,00,000
Total 36,47,000
Appendix
QUESTIONNAIRE FOR EMPLOYER
DEAR SIR/MADAM,
DATE :
PLACE :
Yes No
24
2. Are you interested in our product?
Yes No
Each floor
4. When provided with soft drinks and fresh juices, which would the employees prefer?
Yes No
Any Suggestions
25
QUESTIONNAIRE FOR EMPLOYEES
DEAR SIR/MADAM,
DATE :
PLACE :
Yes No
26
Canteens Each floor
All departments
3. When provided a fresh juice and a soft drink, which one do you prefer more?
4. When provided with fresh juice vending machine, what would be your level of
interest?
Coins Notes
Both
Any Suggestions
27
QUESTIONNAIRE FOR STUDENTS
DEAR SIR/MADAM,
DATE :
PLACE :
Yes No
28
Below 10 10-50
D. If there is an option for soft drinks and fresh juice, which one would, you prefer
more?
Notes Coins
Both
F. When a fresh juice vending machine is launched, would you prefer using it?
Yes No
Any Suggestions
29
DATA ANALYSIS
EMPLOYER
We collected responses from 20 employers including educational institutions, hospitals,
offices, etc. The following are understood from the responses.
I. CANTEEN FACILITY
Table No.:1
OUTCOME PERCENTAGE
YES 16 80
NO 04 20
Figure No.:1
30
120
100
80
60 Percentage
Outcome
40
20
0
Yes No
INTERPRETATION
From the above data it is seen that 80 percent of the companies have canteen facilities and the
rest 20 percent do not have canteen facilities.
Table No.:2
OUTCOME PERCENTAGE
YES 15 75
NO 05 25
Figure No.:2
31
80
70
60
50
Outcome
40 Percentage
30
20
10
0
Yes No
INTERPRETATION
From the above responses, it is revealed that 75 percent of the respondents are interested in
our product and the other 25 percent of the respondents are not interested.
Table No.:3
OUTCOME PERCENTAGE
CANTEENS 10 50
ALL DEPARTMENTS 06 30
EACH FLOOR 04 20
32
Figure No.:3
50
45
40
35
30
25 Outcome
20 Percentage
15
10
5
Percentage
0
Canteen Outcome
All department
Each floor
INTERPRETATION
From the above responses collected it is found that 50 percent of the respondents like to place
the product in canteens, 30 percent of the respondents likes to place the product in all
departments and the rest 20 percent respondents like to place the product in each floor.
Table No.:4
OUTCOME PERCENTAGE
SOFT DRINKS 08 40
FRESH JUICES 12 60
33
Figure No.:4
70
60
50
40
Outcome
30 Percentage
20
10
0
Soft drinks Fresh juices
INTERPRETATION
With the help of the above information it is seen that 40 percent of the respondents prefer soft
drinks and the rest 60 percent respondents prefer fresh juice.
Table No.:5
OUTCOME PERCENTAGE
YES 18 90
NO 02 10
Figure No.:5
34
100
90
80
70
60
50 Outcome
Percentage
40
30
20
10
0
Yes No
INTERPRETATION
From the above information, it is viewed that 90 percent of the respondents wish for after
sales services and the rest 10 percent do not require after sales service.
DATA ANALYSIS
EMPLOYEES
Table No.:6
35
OUTCOME PERCENTAGE
YES 24 60
NO 16 40
Figure No.:6
70
60
50
40
Outcome
30 Percentage
20
10
0
Yes No
INTERPRETATION
From the responses collected it is seen that 60 percent of the employees avail canteen facility
and the rest 40 percent of the respondents do not have canteen facility.
Table No.:7
OUTCOME PERCENTAGE
CANTEEN 08 20
EACH FLOOR 20 50
ALL DEPARTMENTS 12 30
36
Figure No.:7
50
45
40
35
30
25 Outcome
20 Percentage
15
10
5
Percentage
0
Canteen Outcome
Each floor
All departments
INTERPRETATION
50 percent of the respondents suggest placing the product in each floor, 20 percent suggesting
to place in the canteen, and 30 percent suggest placing the product in all departments.
Table No.:8
OUTCOME PERCENTAGE
FRESH JUICES 28 70
SOFT DRINKS 12 30
Figure No.:8
37
100
90
80
70
60 Percentage
50 Outcome
40
30
20
10
0
Fresh juices Category 2
INTERPRETATION
From the information collected it was concluded that 70 percent of the respondents prefer
fresh juice and only 30 percent of the employees prefer soft drinks.
Table No.:9
OUTCOME PERCENTAGE
Highly Interested 08 20
Interested 16 40
Average 12 30
Not Interested 04 10
38
Figure No.:9
Not Interested
Average
Percentage
Outcome
Interested
Highly Interested
0 5 10 15 20 25 30 35 40
INTERPRETATION
From the information collected it was founded that 40 percent of the respondents are
interested in the product, 30 percent respondents stay neutral, 20 percent are highly interested
to the product and the remaining 10 percent respondents are not interested in the product.
Table No.:10
OUTCOME PERCENTAGE
Coins 20 50
Notes 10 25
Both 10 25
39
Figure No.:10
50
45
40
35
30
25
Outcome
20 Percentage
15
10
5
0
Coins Percentage
Notes Outcome
Both
INTERPRETATION
50 percent of respondents prefer coin system, 25 percent prefer note system and the
remaining 25 percent of the respondents prefer both coin and note system.
DATA ANALYSIS
STUDENTS
Table No.:11
OUTCOME PERCENTAGE
YES 20 50
40
NO 20 50
Figure No.:11
50
45
40
35
30
25 Outcome
Percentage
20
15
10
5 Percentage
0
Yes Outcome
No
INTERPRETATION
From the above information it is revealed that 50 percent of the respondents have canteen
facility and the rest 50 percent respondents do not avail canteen facility.
Table No.:12
OUTCOME PERCENTAGE
Below 10 08 20
10-50 12 30
50-100 16 40
Above 100 04 10
41
Figure No.:12
40
35
30
25
Outcome
20
Percentage
15
10
0
Below 10 10-50 50-100 Above 100
INTERPRETATION
From the information collected, it is viewed that 40 percent respondents spend between 50-
100 for their food and drinks, 30 percent spent between 10-50, 20 percent spend below 10
and 20 percent respondents spend above 100.
Table No.:13
OUTCOME PERCENTAGE
Each floor 28 70
Canteen 12 30
Figure No.:13
42
Canteen
Percentage
Outcome
Each floor
0 10 20 30 40 50 60 70
INTERPRETATION
From the responses it is revealed that 70 percent of the respondents would like to get the
product in each floor and the rest 30 percent of the respondents would like the availability of
the product in canteens.
Table No.:14
OUTCOME PERCENTAGE
Soft Drinks 24 60
Fresh Juices 14 40
Figure No.:14
43
70
60
50
40
Outcome
30 Percentage
20
10
0
0.8 1 1.2 1.4 1.6 1.8 2 2.2
INTERPRETATION
According to the information collected, 60 percent of the respondents prefer using soft
drinks, whereas the rest 40 percent of the respondents prefer fresh juices.
Table No.:15
OUTCOME PERCENTAGE
Notes 08 20
Coins 28 70
Both 04 10
44
Figure No.:15
70
60
50
40
Outcome
30 Percentage
20
10
Percentage
0
Notes Outcome
Coins
Both
INTERPRETATION
From the graph, it is seen that 70 percent of the respondents prefer coin system, 20 percent
respondents prefer note system and the remaining 10 percent respondents prefer both coin
and notes system.
Table No.:16
OUTCOME PERCENTAGE
Yes 20 50
No 20 50
45
Figure No.:16
50
45
40
35
30
Outcome
25 Percentage
20
15
10
5
0
Yes No
INTERPRETATION
From the information collected it is seen that 50 percent respondents would use fresh juice if
introduced whereas the remaining 50 percent respondents still prefer soft drinks.
46
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