UNIVERSITY OF CYPRUS

MARKETING PLAN SKYWAYS TRADING LTD

S.M.YPSILON FRESH

STYLIANA KENTA IOANNA TSOKKOU HADJIPAVLIS PAVLOS PETSAS SOLOMOS

2012

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CONTENTS
1 INTRODUCTION 1.................................................................................................................................1 2 SITUATION ANALYSIS 2..................................................................................................................... 3 2.1 COMPANY ANALYSIS............................................................................................................................ 3 2.2 MARKET ANALYSIS.............................................................................................................................. 4 2.3 COMPETITION ANALYSIS........................................................................................................................7 2.4 ENVIRONMENTAL ANALYSIS...................................................................................................................9 3 TARKET MARKET 3........................................................................................................................... 11 3.1 TARGET MARKET............................................................................................................................... 11 3.2 BRAND POSITIONING........................................................................................................................... 12 4 MISSION AND OBJECTIVES4.......................................................................................................... 14 4.1 MISSION........................................................................................................................................... 14 4.2 OBJECTIVES....................................................................................................................................... 14 5 MARKETING STRATEGY5............................................................................................................... 15 5.1 PRODUCT.......................................................................................................................................... 15 5.2 PRICE............................................................................................................................................... 16 5.3 LOGISTICS......................................................................................................................................... 18 5.4 DISTRIBUTION.................................................................................................................................... 21 5.5 PROMOTION....................................................................................................................................... 23 6 IMPLEMENTATION AND CONTROLS 6....................................................................................... 24 6.1 IMPLEMENTATION ISSUES..................................................................................................................... 24 6.2 CONTROL ISSUES................................................................................................................................ 25 7 FINANCIAL ASPECTS 7..................................................................................................................... 26 7.1 SALES AND PROFIT............................................................................................................................. 26 7.2 EXPENSES BUDGET............................................................................................................................. 26 8 CONTINGENCY PLANNING 8.......................................................................................................... 29 8.1 CONTINGENCY PLANNING..................................................................................................... 29 BIBLIOGRAPHY.......................................................................................9

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FIGURES
FIGURE 1.1: BRAND YPSILON FRESH................................................................................................1 FIGURE 1.2: THE ABOVE MENTIONED HOMEMADE TRADITIONAL LEMONADE.............2 TABLE 2.3: COMPETITOR ANALYSIS................................................................................................ 8 FIGURE 3.4: THE JUICES ARE SET IN THE FRIDGES THE ONE BEHIND THE OTHER.....13 FIGURE 5.5: 1-1.20 EURO 350ML.......................................................................................................17 FIGURE 5.6: 1.35-1.50 EURO 425ML.................................................................................................17 FIGURE 5.7: FRUIT PRODUCTION.................................................................................................... 19 FIGURE 5.8: JUICES PROCESS........................................................................................................... 20 FIGURE 5.9: FACTORY FRIDGE.........................................................................................................21 FIGURE 5.10: DISTRIBUTION CHANEL.......................................................................................... 22 TABLE 7.11: EXPENSES........................................................................................................................ 27

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CHAPTER 1
1 INTRODUCTION 1 1.1 Introduction

Skyways Trading Ltd, is a leading Company in the manufacturing of juices, especially in Famagusta Area and all over the Southern part of Cyprus. The brand name of the juices is S. M. Ypsilon Fresh. The brand was established by a young man from Xylophagou village, Larnaka, in 1993. It has become an area brand dedicated to create the best natural juices, with no added sugar and no preservatives. One thing that clearly stands out is that our company give emphasis to the natural ingredients of the juice and has got its own slogan feel good.

Figure 1.1: Brand Ypsilon Fresh At the beginning, the company started producing one of the best freshly squeezed orange juices in Cyprus. Then, when the sales increased, he decided to expand the manufactory and produced more kinds of juices, like a mandarin, pineapple, strawberry, a mix juice with nine fruits etc. Its important to mention that, after five years he decided to produce a new product. He made a lemonade squash which its named Sofronis Homemade Lemonade and its a homemade traditional recipe. It has the same taste as the grandmothers traditional lemonade.

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2 Nowadays, with the economic crisis the situation is very difficult. The competition with other companies is very big, but this is a good challenge to acquire a significant part in the market. The goal of the company is to increase the sales, as high as possible in Famagusta area and gradually extend its network by covering all the Southern part of Cyprus.

Figure 1.2: The above mentioned homemade traditional Lemonade

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CHAPTER 2
2 SITUATION ANALYSIS 2

2.1

Company Analysis

The possibilities for a company to succeed or not,

in a specified

market or industry in our case, the industry of production of liquids (juices) - depends in many factors such as, the company analysis, the market analysis and the product quality and taste, when first entered the market. Any company need to know that creating a new company with new products, will find a lot of unexpected factors at the beginning and after. It is a very big risk for the company, since they do not know how to find solutions straight away but also it can achieve success very easily and soon. The company can use fresh and innovative ideas to the public who are the consumers of the product. Analyzing Skyways Trading Ltd (hereinafter referred to as the company) which produces S.M. Ypsilon Fresh juices, is a small company in comparison with other companies that produce juices, it is significant to say that the production of S.M. Ypsilon Fresh juices, takes place in a modern factory, having the latest technology in machinery, managed by people who obey the rules of hygiene. It is the most important of all to teach the people that work in the factory to know the Hygiene and the use of every machine (specialisation of labour), to get the highest level production standards and supply the market, consumers, with the best quality products. Another crucial point with regards to the production of S.M. Ypsilon Fresh juices by the company is that they give a significant attention to the factors of taste and quality of the product, by using only natural ingredients for their production and keep all the vitamins. This method works in favour of the company since the consumers are always demanding to purchase tasteful and qualitative products.
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4 Additionally, in order for some consumers to buy the product, a significant role that can determine their decision by convincing them to buy the product or not, is the appearance of the product. In this case the appearance of S.M. Ypsilon Fresh juices, attract customers look due to the fact that the labels on the bottles are colourful, presenting different kinds of fruits giving you the sense of freshness. Further to this, the company has the capability of generating not only orange juice, but a variety of different kinds of juices such as strawberry juice, lemonade juice, mandarin juice, a mix juice with nine fruits etc, which covers numerous preferences and choices that consumers might have. In order to improve the standards of the production and the quality of the products, the company need to have money resources to use at any time. In this case the company could avoid any obstacles in the improvement of the production of S.M. Ypsilon Fresh juices if there was more income. This factor creates difficulties in the progress of the production due to lack of money in the company; its more difficult for the companies, to achieve their ultimate goal which is growth and profit.

2.2

Market Analysis

Analyzing the big market that Skyways Trading Ltd is a part of, and taking into a good consideration the lack of money, we realize that the company which was established in Larnaca-Xylophagou and produces and distributes the above named product (S.M. Ypsilon Fresh juice) in Famagusta province has no significant growth in the market. This factor eliminates the opportunity of the product to have further expansion in all over Cyprus, Southern part, and as a result this productjuice to be known particularly in that area. This factor, which will be analyzed below, has a negative impact in buying behaviour. Firms obligation is to discover the nature of consumers' buying behaviour, as to whether the product is properly set in the market place. Firms effort is to control the behavioural procedures of how the sales of the product are improving, because they want to attract consumers attention,
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5 to purchase the product. If a consumer wanted to buy a juice, could find any information, leading on obtainable or accessible place in this case supermarket and stores. In the case of S.M. Ypsilon Fresh juice unfortunately you cant find it in all supermarkets around Cyprus and that has a negative impact in buying behaviour. The desire for a juice could also be satisfied by checking the media (newspapers, magazines, radio) if the product is advertised, but also a consumer could collect information for the product or be influenced by family or friends with regards to the purchase of the product. If the data search is unsatisfactory, the consumer may pursuit for different king of juice (brand) to fulfil the desire. In this case, this may mean buying other kinds of juices from other companies. The acquisition of a product is made when the consumer buys the product. Usually in the case of S.M. Ypsilon Fresh juice, most people are buying this product, urged by family and friends. Additionally a psychological factor can influence buying behaviour with regards to the consumption of the juice since a person who already tasted the juice and liked it; the same person will buy it again. Subsequently to this step, buying behavior can be determined on how much money the product costs. If it has a high level of value then the consumer will not buy this product and will search for another similar product to buy. If the consumers are satisfied with the price then they will buy the product. This could lead into a consumer loyalty to the company, manufacturing the goods, which in our case are juices. S.M. Ypsilon Fresh juices are high priced juices, so people that usually buy the product are those with high or average salary (income). In connection to the above, nowadays, many companies that produce juices expand their product all over Cyprus and they even export their
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6 product in order to gain growth. They also advertise the product in the media in order for the product to be well known in the industry. This has a negative impact on S.M. Ypsilon Fresh juice and further to the company, since the product is mostly familiar and distributed in a particular area (Famagusta province). The company does not advertise whatsoever the product, which means, S.M. Ypsilon Fresh juices are not juices wide spread in Cyprus. In this respect consumers from other cities cannot be provided easily with the product unless they are in Famagusta province. Even so, they will probably purchase a juice well known to them instead of S.M. Ypsilon Fresh juice which is unfamiliar to them. In contrast, the advantage of the company is that S.M. Ypsilon Fresh juices are well known in Famagusta province which means that citizens of the area prefer this product since the product is so familiar to them in comparison to other products. Moreover, according to the company, the sales of S.M. Ypsilon Fresh juices are characterized by decrease, in comparison with other similar products, due to the fact that many customers prefer to buy cheaper imported juices rejecting domestic products. Adding to the above, it is important to consider that many owners of supermarkets, shops and stores require having discount on the products. This does not benefit the company since they accept the above mentioned conditions their profit will be limited in relation to the product without any additional discount. Also there are some cases in which the owners of the mentioned stores do not pay when the product is delivered and they request more time on credits in order to pay off their debts. This is also something in the market area, which the companies usually avoid and they need to find ways to eliminate this phenomenon.

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2.3

Competition Analysis

Competitor analysis in marketing and strategical management is an assessment of strengths and weaknesses of current and potential competitors. The business must know its competition, current and potential. Competitor forming its own market with the unique concept providing fresh juices with vitamin and without sugar in the most juices.

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Juice Brand Ypsilon Fresh

Taste OrangeSquash

Prices Lemonade 1.00-1.20 -Strawberry- (350ml) 1.35-1.50 (425ml) 2.50- 3.00 (Lemonade

Offers Not Applicabl e

Delivery Especially province in Famagusta and in all military camps

Pineapple-Multivitamin Juice- Mandarin etc

Lanitis

Squash) Orange Juice- Grapefruit- 1.50 (1L) 4 Cirtus Juice & AppleApple Pineapple- Extra etc

1.20 (1L) 4 and Tupperwa re 0.90 (1L) Not Applicabl e juices

Everywhere in Cyprus

HBH KEAN

Orange-

Pineapple- 1.60-1.73 (1L)

Everywhere in Cyprus Everywhere in Cyprus

Apple-Lemonade etc OrangePineapple- 1.43-1.50 (1L) Apple-Lemonade etc

Table 2.3: Competitor Analysis

In Juice Market, there are many competitors from Cyprus as Lanitis, , KEAN and from other countries (not only from Europe). We concentrate in the Companies that produce Juices because their taste, offers and prices have affected our business. It is a threat that they offer similar products and that they are well established in Cyprus for a long time. From the above comparisons its clear that our company is poor in the delivery of products. The Company delivers especially in Famagusta villages, in contrast with the other brands that are delivering their products all over Cyprus. In addition our company has high prices on its products. The reason is that our company is a small company in Cyprus market. Also

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9 as we can see Ypsilon Fresh does not have any offers because they could not spend extra money. Ypsilon Fresh with its slogan Feel good could attract new customers that care about their health. Moreover, the company tries to keep the nice taste and the best quality of products. They must improve the delivery of the products all over Cyprus, in order to increase the sales.

2.4

Environmental Analysis

PEST Analysis is very important for an organization. Its the environmental analysis before beginning the marketing process. Political, Economic, Sociocultural and Technological Environments are known as PEST factors. The Political Environmental analysis is relatively stable. They need to have a good working knowledge and conform to major laws as HACCAP. As a good company, they obey, all the rules that government wants to follow. So, they are ready at anytime for any unexpected visit of a government employee to check the factory. During this period, the demography environment is changing. The reason is that people want to increase the life expectancy. More specifically, customers are very careful what they are going to consume. For our product this situation is helpful because the company wants to give the message that when you drink that juice you feel good. The need of products with better quality is rising year by year. One thing that clearly stands out is the economic environment. When the income of consumers goes up, the requirement of qualitative products is higher. Company provides public with a natural juice, full of vitamins. Even though that companys juice is slightly more expensive in comparison with other brands prices, we have to consider that the juice provides high quality. The technological environmental is changing too fast. Our company has got the newest producing machinery. Moreover, from the development budgets, we give more emphasis on innovative products. With the new
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10 technology our company is truly conformed to all regulations such as ISO and HACCAP. Its generally true that the consumer patriotism is increasing. Many people are looking if the products are made in Cyprus. Furthermore, according to the labels that are placed in other companies juices bottles we can see that S.M. Ypsilon juices have no extra ingredients that make juice remaining more days in the fridge. For example other products can remain in the fridge for a long more time than S.M. Ypsilon juice since the pasteurization method of the other products (juices) is being done on a higher temperature from S.M. Ypsilon juices. Also, the company is showing care for environment due to the fact the bottles can be recycled.

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CHAPTER 3
3 TARKET MARKET 3

3.1

Target Market

The companys aim for the product (S.M. Ypsilon Fresh juice) is to be consumed by all those people who prefer drinking juices in relation to other liquids, and urge those who dont like consuming juices to start drinking them. Also as a target market are all those people who consume juices of other brands and how they could be approached in order to gain their trust and be supporters of the product and as a consequence supporters of the company. Since the company that produces S.M. Ypsilon Fresh juices is mostly operated and functioned in Famagusta province, has no significant growth because as previously mentioned in market analysis, the company distributes the juices more often in that area. From this, we realize that the company has a size considerably smaller from other big companies in Cyprus that produces juices. In this respect, companys product is being consumed by a smaller group of people in relation to other companies that expand their product in each city of Cyprus even abroad. S.M. Ypsilon Fresh juice is consumed by groups of people of all ages and gender. Parents usually purchase this product for their children since the product contains vitamins beneficial for childrens health. Essential is the fact that the company supplies military camps all over Cyprus having as a result S.M. Ypsilon Fresh juice to be consumed by a large number of people increasing with this way companys sales. In addition, people who wake up in the morning, getting ready for their job, they usually consume S.M. Ypsilon Fresh juice before they go, since based on their words, it is offering them energy and a sense of freshness which these two factors are important in order to begin a difficult day at work.
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12 Also, in the list of those who consume this product can be added people with average or high income salary, educated or not educated, people with different ethnic background (ie religion beliefs, cultural and social differences etc), people that are modern or conservative, people who are married or single. Additionally to the above, there are many people who have as hobbies sports for example, swimming, running, playing football, basketball or even just exercising in a gym for fitness and they prefer drinking S.M. Ypsilon Fresh juices because that juices gives them energy to continue their favourite hobbies and they also consume that juices because are healthy formed juices.

3.2

Brand Positioning

Defining brand positioning in the market for each company is a difficult thing to do. As soon as you identify who you are aiming for in order for the product to be purchased, you have to try and advertise the product as much as possible which this is something that our company does not doing due to the lack of money. In this regard the company does not advertise in media the benefits of the juices. In this order, a television viewer for example, is not been attracted by any kind of a slogan as most companies do in order to intrigue curiosity of people for their products. The competitors of the company can gain from this, since the company does not advertise the product which this automatically means that the competitors have more tool in their hands in order to approach customers. However, according to the company, the brand positioning of S.M. Ypsilon Freshis juices is firstly when people remember the slogan which is been placed in supermarkets fridges saying Feel Good and secondly, when people consume it, they remember this juice for its flavor, which due to the
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13 fact that contains pure ingredients, this adds in its special flavor in contrast with our juices brands (competitors). If the product was proper advertised then it is considerable stress-free to understand which media (television, newspapers, magazines, radio) the company could use in order to influence new and more customers and understand what advertising massages could be appropriate for them. In addition, as an advantage is the fact that when the customers are in the supermarket fridges for purchasing juices, can clearly see a big label that has the companys slogan feel good which that attracts the customers attention in order to buy the juice since this slogan makes you feel good indeed.

Figure 3.4: The juices are set in the fridges the one behind the other

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CHAPTER 4
4 MISSION AND OBJECTIVES4

4.1 Mission The mission of the company Skyways Trading Ltd is to be the leading supplier of fresh juices in the Cyprus Market. First of all, Skyways Trading Ltd needs to keep its sales at high rates and even increase them in the future. Also, focus on fresh product and make fresh juices with excellent quality. Moreover, maintain long term relationships with employees, customers and suppliers. S.M. Ypsilon Fresh Juices support local agriculture and reconnects people to the physical emotional joy of eating fresh. Furthermore, Skyways Trading Ltd needs to control the effect of the financial crisis as much as possible.

4.2

Objectives

The main objective in the company is increasing profit and revenues of sales. Skyways Trading Ltd used to be the number one company on sales in Famagusta area before we entrain in the European Union. After that, many juices showed up in the market with very low prices. As a result, that increased of competition in the market. In addition, with the current financial crisis, its very difficult to increase sales at this point of time, but it should try to remain stable. One other objective is to improve distribution process. Distribution of goods must be in all over Cyprus and not especially in Famagusta area. For this to be accomplished, juices production should be increased, employments should be rise and customer service section should be upgraded. Our company must exceed customer satisfaction in order to retain and develop a healthy relationship with their customers. Skyways Trading Ltd must attract the customer. To materialize this, company should promote the brand -and the product in particular- by offering competitive prices.
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CHAPTER 5
5 MARKETING STRATEGY5

5.1

Product

In order to be able and analyze a marketing strategy, we have to define what a Marketing Strategy is. In this regard, is crucial and essential, for any kind of business or organization emerging a marketing strategy, since in case of a lack of marketing strategy, a business will be incapable to approach customers for its products and/or facilities. The attention and concentration of Marketing Strategy of every business should be the advantages that products of a company may bring in relation to in what way these advantages can come across with customers requirements. This kind of method can provide company with continuing and productive connection and building strong bonds with the clients. Significant is for a company to develop a type of strategy that can react automatically to eccentricities in customer opinions and requests. With the development of that type of strategy a company can recognize and categorize fresh and different marketplaces that a company can effectively mark. As far as S.M. Ypsilon Fresh juices marketing strategy we have to say that as a product is one of the most qualitative juices in the market since the company uses pure ingredients in order to produce the juices which
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16 these ingredients are in most cases fruits (except of lemon juice and mandarin juice that have minor percentage of sugar) in relation with the other brands that exists in the market which for making juices they insert large quantities of sugar and other substitutes. Due to the fact that the distribution of the product is mostly being done in an area specified above, (Famagusta province) the brand is not well known in all over Cyprus. As a product S.M. Ypsilon Fresh juices appearance attracts customers gaze since the labels that are placed on the bottles are creative and artistic demonstrating not the same categories of fruits capturing in this way customers look. Supplementary to this, company has the ability of producing not only orange juices but also a range of dissimilar sorts of juices witch are the following: strawberry juice, lemonade juice, apple juice, mandarin juice, pineapple juice, blackcurrant juice, juice made of 3 fruits (ie lemon, orange and pineapple) and a mix juice with nine fruits (ie orange, peach, apricot, apple, pineapple, kiwi, banana, mandarin and grapefruit). This covers with numerous preference and selections that customers may have.

5.2

Price

S.M. Ypsilon Fresh juice is being packaged in plastic bottles with capacity of 350 ml, 425 ml, and 720 ml letting this way the consumers to decide whether they require consuming more or less juices. The bottles are easy to be opened and when finish consumption the plastic bottles can be recycled since they are environmental friendly.
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17 The prices of S.M. Ypsilon Fresh juices are the following: 1-1.20 euro 350ml 1.35-1.50 euro 425ml 2.50-3.00 euro 720 ml (Lemonade squash)

The above mentioned prices are the prices placed in supermarkets and stores fridges for selling.

Figure 5.5: 1-1.20 euro 350ml

Figure 5.6: 1.35-1.50 euro 425ml

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18 Comparing the above mentioned prices with other companies that produce juices we can see that Skyways Trading Ltd is placing high prices on its products. The intention for that is that the company is one of the smallest companies in production of juices in Cyprus so by having charging more the product, automatically means that the company gains some profit. In addition S.M. Ypsilon Fresh juices do not give any offers since according with the companys budget they could not afford to spend extra money

5.3

Logistics

Logistics is the business planning for the management of material, service, information material and capital framework. Is the combination handling, inventory, warehousing, of packaging, orders,

transportation and information. Skyways Trading Ltd has one manufacturing centre. They producing, many kinds of fresh juices. There are two types of production. We have got two production areas because this is the rule set by HACAP. The two productions areas are named as follows: Fruit Production and; Juice Ready to Drink Production.

First of all the company obtains the fruits from the various producers. Each producer should write his name, the receipt date and the kind of fruits. The reason is that, if there is any problem in the production they know the details at any time. From the begging of this production, there is a region that the fruits are being washed all together in the fruit washing machine. Any impurities are then vanished. Then, is the area of fruit disinfectant.

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Figure 5.7: Fruit Production

The fruits are washed with disinfectant, and then by a mechanism, as the picture shows, the fruits are again washed with water. After that, they are being shorted by an employee very carefully, and the fruits are moved on the juice extractor. The production is about 1 tone per hour. The juice is processed by a piston (noted that the machine has two pistons). Every piston has a juice filter and ends in a tank. In the tank there is one more filter for a better check. Moreover, the juice is being processed from two more filters which end in special drums. Peels from fruits automatically are ending to the trashes outside from the factory. Then, every drum is been weighted and finally is been stored in a freezer with approximately -180C. Finally, the employees for the companys records take notes of the day of the production, the name of each producer, and how many drums were produced.

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Figure 5.8: Juices Process

The second phase of production begins with cleaning all the rooms, pipes and machines. Its very important, each section of the factory to be disinfected. The water that the company uses for cleaning is reverse osmosis water for a better quality of cleaning. Finally employees wash with hot water all pipes at 90oC for better sterilisation. The day before they begin the production of juice, they should thaw the drums. There is a specific area with room temperature which the drums are been defrost. Also, the employees are responsible for the quantity of sugar to be added in the juices and also the quantity of the bottles that are going to be distributed where needed (supermarkets, military camps etc). In addition when the procedures of disinfection over, a pasteurizing tank is been full up with water, sugar (if required), and juice. The heat exchanger system is pasteurizing the juices at 75 oC for five minutes and cooling them at 2-4 oC in the cooling tank. Then, the juice is processed in next room called Bottling Area. In this stage the juice is packaged in

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21 bottles and finally is kept in a factory fridge at 1-4 oC. The products in stores are kept in a separate place by category ie (expiry day and type fruits).

Figure 5.9: Factory Fridge 5.4 Distribution

Its interesting to note that, there are not orders placed. Skyways Trading Ltd is supplying juices to S.M.Ypsilon Fresh Company. S.M.Ypsilon Fresh Company is responsible for transportations of juices. The company has split the region of Famagusta in different areas for example Paralimni, Protaras etc in order to visit each area every day in the summer and every two days in the winder. A striking point is that our company has its high season in a summer. Also, supplies (juices) are transferred in the military camps in Cyprus three days of the week. Every day, four employees from S.M.Ypsilon Company go to the factory, with specific fridge vessels in order to obtain juices. They have a program with regards to which supermarkets or military camps should visit every day. Two salesmen are responsible about Famagusta area and the other two are responsible about army and other regions in all over Cyprus. Every salesman has got its own customers and everyday its own program. Additionally, every representative of shops that juices are going to be
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22 delivered has got a specific day and time of visiting. The salesman is never late on his visit. First of all, they are looking for the customer needs and if the temperature in fridges is in a correct degree. Then they communicate with the customer, if he agrees with the quantities of the juices. After that, when everything is been clarified, they fill up the empty place in the fridge with different type of juices. Finally, the customer pays the salesman. The first priority of salesmen is the good communication with the customers (representative of shops). When they are visiting them, they ask them if they have got any problems with the juices and what are their needs. Moreover, they want customers to be very satisfied with product and with the communication amongst them. The customer expectation should be fulfilled either if there is too high. Furthermore, the carefully managing of each customers at touch points, is maximize the loyalty so, the company has got decades of customers that are buying juices more than fifteen years.

Figure 5.10: Distribution Chanel

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23 5.5 Promotion

Unfortunately, the product is not being promoted or advertised in any media form (ie newspapers, television, radio, magazine, etc) due to the lack of money that was a subsequent of the economic crisis that has influenced most companies and especially small size companies concerning capital. Furthermore, the way that the juices of the company are placed in supermarkets fridges is always preferably set in 1.60 m in order to attract the gaze of the consumer since if it is placed in very low or high fridges, juices wont be easily accessible. Also, the juices are set in the fridges the one behind the other in case that even if the front row is purchased the customer wont realize at that moment the difference since they will see at the back another row. In that respect, the abovementioned procedure reflects how orderly wants the company to have the juices placed in supermarkets etc for the customer pleasure. If the company had available funds and resources then it could be expanded all over Cyprus by promoting the product resulting increase of sales and rise of profits.

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CHAPTER 6
6 IMPLEMENTATION AND CONTROLS 6

6.1

Implementation Issues

In order for the company to achieve the set goals which are the profit from the sales of the products, company must specify what the obligations are and who must process them, and finally how the actions should be organized and coordinated. The owner of the company who is also the manager of the company is in charged for the general control of the company. He has a group that falls under him. This group is composed by three people who are responsible for the proper functioning of the company. The manager of the company is training them in order for the above mentioned group to have the required knowledge for their work regarding juice production. The Manager is responsible for the liaising with the salesmen of the products (juices) in order for the salesmen to go to the factory and obtain the products. The production of the juices, as well as the delivery of the products and the liaison with all the people that have a big role in order for the product to be placed in the supermarket fridges, is based on a time frame. It should not be any delay in the production or the delivery of the product due to the fact that this issue has a negative impact in the good function of the company since they have to be consistent with their schedule which in case of a delay this affects their clients since they will not get juices in time. In that order, company insists to follow a program which is based on time in order to satisfy customers. Additionally the manager demands from its group to give him constantly information as to how the process of juice production is going in order to examine whether a change can be made in order to improve the procedures that the company follows or whether they need to assist the group with essential matters for the companys benefit.
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25 Manager also inspects the factory area in order to make sure that the production is doing well and also he takes notes in order to know if in the future a problem occurs in the production of juice, how to solve it.

6.2

Control Issues

For the prevention of any unpleasant incidents that may happen, manager due to the fact that this role in the company is to have general control, he sets several questions to his group in order to motivate them overcome any difficulties. In addition he set goals for achievement and he evaluates each employees performance. Finally manager give advises to the group in order to improve their performance. In case that, a client is not satisfied with the juice that the company produces, or even if someone complains about the companys product, then an employee, member of the company, is sent to that place in order to check and resolve any issues. This is a priority for the company since they do not want to have dissatisfied customers.

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CHAPTER 7
7 FINANCIAL ASPECTS 7

7.1

Sales and Profit

Forecasting sales and profits during an economic crisis is very risky. Its interesting to note that the company, when introduced in the market had got high revenues, from 1993 until to 2000. The reason was that because the product of fresh juice was a new phenomenon in a market. Then when the Cyprus inserted in European Union, new cheaper products inserted in the market and the sales were decreasing. Moreover, the forecasting sales for the next three years are not so good because of the new products that are presented in Cyprus. On the other hand, because of the fact that the company is distributing especially in Famagusta, if the tourism rises then the sales are going to be increased.

7.2

Expenses Budget

The expenses of budget year by year are growing. The company has got expenses as labels, materials, electricity, workers, petrol, cleaning e.t.c. The Skyways Trading Ltd expenses are approximately about 73-75% of sales by a year. In that respect as a result only approximately the 25% is the profit of the company. Last year, the expenses were nearly about 63.188 plus the workers salaries.

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Expenses
Labels Bottles Rent Machines Materials Electricity Water Petrol Cleaning materials Table 7.11: Expenses

Cost
4.000 16.000 5.760 1.000 22.328 12.000 600 1.000 500

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CHAPTER 8
8 CONTINGENCY PLANNING 8

8.1

CONTINGENCY PLANNING

Summarizing the above analysed Company, we understand that even though is a small company of juice production in comparison with other big Companies that produce juices, Skyway Trading Ltd tries to overcome the difficulty of having to compete big competitors. This factor is not always achievable since there are many obstacles that the company has to deal with and overcome. A major obstacle is the resources (funds), which are limited and in this regard company cannot advertise products as the other companies do. As a result the brand its mostly known in Famagusta province. Company must find ways for the expansion of their product all over Cyprus in order to be able to compete equally its competitors. This can be achieved by improving juices distribution in Cyprus and by advertising the product in the media (newspapers, television, radio, internet etc). Additionally, by preparing a questionnaire to the consumers of the product, in order to understand what consumers really require by a juice or whether they have any recommendations for improvement that the company can take in a good consideration. A questionnaire can also be prepared for the evaluation of the salesmen in order for the owner of the company to see whether they are doing properly their job and if they satisfy customers (supermarkets, shops etc). Bonus could be given to them in order to persuade them to do their job efficiently. Noticeable is the fact that the company gives great importance to the appearance of the product which this works as a benefit for the company since the product attracts consumers gaze. Companys goal is to maintain loyalty of their clients and approach new customers. This will help in the increasing of sales and as a result the profits of the company will rise.
SKYWAYS TRADING LTD S.M.YPSILON FRESH

30 In the market, significant is the fact that regardless if the companies are big or small, must always try to improve their product, services, facilities etc because there is always space for improvement in all fields.

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BIBLIOGRAPHY

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SKYWAYS TRADING LTD

S.M.YPSILON FRESH