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THE COMPREHENSIVE PROJECT

MAX DRISTRIBUTERS

AN AUTHORISED AGENCY OFPARLE-AGRO

BEVERAGES PRODUCTS

For

The partial fulfillment of degree course

Masters of Business Administration (MBA)

Under Guidance of: Submitted by:

DR. B.L. BAJPAI ABHISHEK SAXENA

(HEAD OF DEPARTMENT) MBA(EB) 4TH SEM

Deppt. Of business administration roll.no.- 71101

University of Lucknow

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Declaration

I hereby declare that this project entitled MAX DISTRIBUTERS

Business Plan on Parle-agroAgencyis my own individual and original

work and has not been previously submitted and approved for another

degree or diploma.

ABHISHEK SAXENA

MBA (E - Business) SEM 4th

Roll No. 71101

Department Of Business Administration

University of Lucknow

Lucknow

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Acknowledgement

With profound sense of gratitude, I acknowledge my indebtedness to the

Almighty for His grace, which let me complete my project without any

major hurdle.

I express my deepest sense of gratitude and sincere thanks to Dr. B.L.

BAJPAI (head of department) Deptt. Of Business Administration,

University of Lucknow, who was my Project Guide for his continuous

encouragement, instructions and insights that helped this project chart a

proper course.

Lastly but sincerely, I would like to express my regards from the bottom of

my heart to my parents, friends and other family members for their

support and affection for being the pillar of encouragement and inspirationthroughout this project work.

ABHISHEK SAXENA

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TABLE OF CONTENT

1. EXECUTIVE SUMMERY ---------------------------------1a. Objectiveb. Missionc. Key to success

2. ABOUT THE FIRM --------------------------------------3a. Company Ownershipb. Company Locationc. Startup plan

3. PRODUCTS ---------------------------------------------6a. Product Descriptionb. Competitive Comparison

4. MARKET ANALYSIS ------------------------------------7a. Market Segmentationb. Market Analysisc. Market Needd. Market Trends

e. Buying Trendsf. Distribution Channel

5. STRATEGY & IMPLEMANTATION---------------------13a. Strategy Pyramidsb. Competitive Edgec. Market Strategyd. Sales Strategy

6. MANAGEMENT REPORT-------------------------------17a. Organizational Structureb. Personnel Plan

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7. FINANCIAL PLAN--------------------------------------18a. Important Assumptionb. Break Even Analysis

c. Projected P&Ld. Projected Cash Flowe. Projected Balance sheet

BIBLIOGRAPHY

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- INTRODUCTION-

Parle Agro has been a trusted name in the beverage industry providing

wholesome and healthy agro-based drink brands. It has successfully

launched some of India's leading beverages like Frooti, Appy and N-Joi,

and packaged drinking water, Bailey, over the last two decades.

In a country where health consciousness is growing at a rapid pace, Parle

Agro, with its numerous fruit-based drinks, has struck a chord with the

masses. It brings to the consumers the magic of premium quality fresh

fruit drinks conveniently packed and available all through the year.

Fruit beverages are wholesome, easy to digest, highly refreshing with

natural nutritional values as compared to synthetic and aerated drinks.

Parle Agro's Frooti is India's first national mango drink. The mango

segment is 95% of the Indian fruit drink market and Frooti has 85%

market share in the tetra pack segment. Made from fresh and premium

Indian mangoes, Frooti has grown to be one of India's top 50 most trusted

brands. When Parle Agro launched N-Joi with real fruits and fresh milk, it

not only launched a new healthy beverage, but also created a whole new

category in India. The milk shake claims to contain no preservatives and is

full of nutritional goodness. It's a delicious filler and an apt quick refreshing

nourishment for today's hectic stressful life. Appy, another premium drink

from the Parle portfolio, is a deliciously light and refreshing apple drink

made from orchard fresh apples from Himachal Pradesh. It's a favourite

with the young generation as a tasty, healthy, nourishing drink.

Parle Agro has also diversified into the fitness industry and has set up

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fitness centres in Juhu and Malad in Mumbai with aggressive plans to

expand nationally. Says Ms Nadia Chauhan, Director, Marketing, "Parle

Agro remains committed to refreshing India and constantly cater to the

health and quality-conscious consumer through newer and varied

initiatives."

Parle Agro is the first to introduce fruit drink in a tetra pack in India, the

first to introduce apple nectar and the first to introduce fruit drinks in PET

bottles in India and the first to develop a real fruit and dairy fresh milk

brand.

There is increasingly demand of the beverage product in households.

Growing importance of health consciousness can be gauged from the fact

that there has been 40% increase in sales of beverage products especially

soft drinks over last 3-4 years. With increasing demand of beverage

products have lead to open up bars and restaurant. Parle Distributors plans

to handle area of Gorakhpur city and local for distribution of products of

Parle beverage. The agencys primary focus shall be small outlets whichhas potential of selling around two to three crate of product.

1:- EXECUTIVE SUMMARY

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This business plan has been prepared in order to raise the financing

necessary to start a distribution agency of PARLE-AGRO, to provide

necessary market for PARLES BVERAGE products. There has been a

growth in sales of Beverage products.

PARLE DISTRIBUTOR is channel distribution management agency of

PARLE-AGRO India. We are going to manage the distribution of beverages

of Parle-agro. The area of operation will be Gorakhpur City and adjoining

rural areas. We are going to cater outlets; Restaurants, Hotels, Dhabas and

most importantly school and collages. We will also provide distribution of

Parle beverages in parties also.

Agency is based on assumption that there is a yawning gap between

demand of beverage product and supply. Parle Distributors will try to

handle entire area authorized by Parle-agro to cater; we will try to reach

each and every outlet, which can sell our products. There will be all the

flavor of the Parle beverages available so that the energy segment of the

meet shall be keeps important.

Parle DISTRIBUTORS will try to capture each and every part of the market.

We are going to employ three vehicles for distributing the beverages. This

will not only help us to access every corner but also help customers to

update their stock regularly. We are going to visit each outlet daily with in

the city and in rural are after a gap of two days.

1.1 Objective

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The objective are specify goal which are achievable by parle Distributors

with in first two years of operation these objective are outlined below.

1) Sales of 2.5 lakhs units till the end of this season.

2) To double the sale in next season.

3) To achieve break even with in 16 months.

1.2 Mission

we aim at providing access to Parle beverage to every one with in their

reach and will try to create thrust by displaying the product so that sale in

my area multiply annually We are will provide each every outlets, Hotels,

Restaurant And other prospect market with all flavor. We will help each &every prospect market to update there stock at by the company. We will

also provide the flavor to marriage party.

1.3 Key to success

The following facts of parle distributors it financial success.

1) Unique service, unmatched distribution activity.

2) Low operating overheads.

3) Dedication and hard work of the founders

4) Fast inventory turnover.

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2:- ABOUT THE FIRM

Parle distributor is new agency of Parle beverage in Gorakhpur city t to

manage distribution of various products of Parle beverage. There is nodistributor of Parle agro beverage in Gorakhpur city. So to capture the

opportunity we have planned to take agency of Parle agro in Gorakhpur

city. There is great opportunity of growth in near future.

2.1 Company Ownership

PARLE distributors will be created as sole proprietorship owned by its

founder, TANUSHRI BOSE. The Company will be operated from Tanushris

home. The finance required for starting this business is Rs.30, 00,000/- .

The owner is investing 20, 00,000/-. The remaining 10, 00,000/- will be

arranged by taking bank loan.

2.2 Firm Location and Facilities

This business will be operated out of my office to be situated APL Plaza,

Golghar, Gorakhpur (U.P.). The Warehousing and stocking will also be done

here in store.

The current address of the firm is:-

PARLE DISTRIBUTORS

APL Plaza

Golghar

GORAKHPUR

2.3 Start-Up Summary

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The start up cost is listed in the following page. The startup cost need is

Rs.30,00,000/-. The major expense need is in the security for the

dealership for the company, which is Rs.10, 00,000/- and one Tata407 and

two Three-wheelers. Whose cost reaches to about Rs.10, 00,000/- and we

plan to start with the Rs.8, 00,000/- initial inventory.

Table: start-up

Start Up Requirements 3000000

Start-up ExpensesLegal 5,000

Broacher 5,000

Stationary 5,000

A.C. and fittings 30,000

Insurance 16,000

Security for office place+ salary 24,000

Other 15,000

Total Start Up expenses 1,00,000

Start up assets needed

Cash balance at startup 100000Security for dealership 1000000

Start-up inventory 800000

Tata 407(1) & Carriage tempo (2) 1000000

Total Assets Needed 29,00,000

Total Requirements 30,00,000

Funding

Investor (Abhishek) 20,00,000

Total Investment 20,00,000

Total Loaning amount required :-Total Requirements 30,00,000

Less: Total Investment 20,00,000

Loan Amount required 10,00,000

Loan Break up

Long term loan 5yrs @13% interest 10,00,000

Total Term Loans 10,00,000

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3:- PRODUCTS

We will offer all the product of beverages product of Parle. There are many

products of which are market leaders. So there is no any doubt of flattering

of this business.

3.1 Product Description

The product quality will be as per present company that is at parle-agro

owners current flavor and brand available are-:

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Frooti (mango flavor)

Appy fizz (apple flavor )

N-joy (real fruits and milk flavor)

bailley mineral water (pet bottle)

All the above products are also available in pet bottle.

3.2 Competitive Comparison

The only way we can hope to grow well is to work very hard and try to

capture parleimum area of Gorakhpur city. We need to handle all the

potential market very effectively.

4:- MARKET ANALYSIS

Parle Agro has been a trusted name in the beverage industry providing

wholesome and healthy agro-based drink brands. It has successfully

launched some of India's leading beverages like Frooti, Appy , N-Joi, and

packaged drinking water, Bailey, over the last two decades.

In a country where health consciousness is growing at a rapid pace, Parle

Agro, with its numerous fruit-based drinks, has struck a chord with the

masses. It brings to the consumers the magic of premium quality fresh

fruit drinks conveniently packed and available all through the year.

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For beverages, a survey was conducted among 20 dealers of beverages to

find out the opportunity and threats prevailing in the market. The following

findings were quite encouraging which are as follows:

1. Of the total sales in terms of volume 90% belongs to the companies

who are operating at state (regional) level.

2. It has more seasonal business as people are using more in the

summer season.

3. Annual sale of Gorakhpur market is itself more than Rs. Ten million.

4. The customer is highly dependent on the availability of particular

brands.

5. The market of beverages is growing at the rate of more than 40% as

more and more people are switching from old fashion drink.

4.1 Market Segmentation Strategy

Parle is operating in India since last 80 years. In order to capture the parle

market we need to work day in and out. We will target all the potential

outlets, hotels, restaurants and public gathering never including railway

station & roadways. These are known all age group will use brands. We will

focus mainly on potential costumers. Only limitation will be how much area

Parle-agro allows us to cover. As there is potential of high growth of

beverage market in near future. There is guarantee of growth of the

beverage market because today people spend 66% of their money on food

and cloths, which include almost 80% of money on food. Following reason

shows in support the above points:

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1. Growth of income and consumption pattern of the people.

2. There is growth of the literacy rate.

3. Favorite in the teenagers and influence of children in family buying.

4. Growth of consumption of frozen food.

5. Influence of other people and television which shows the

advertisement of the beverages.

The target markets almost every individual who can afford to a cold drink.

4.2 Market Analysis

Potential Customer Growth

Roadways/ Railways Outlets 40%

Hotels, Restaurants, Dhabas 35%

Small outlets and dealers 45%

Total 40%

4.3 Market Need

Parle beverages are popular product as each individual can afford

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Since our target market is in growth stage and is service seeker, the most

important market needs are service, customized product, in that order.

One of the key points of our strategy is the focus on target segments that

know and understand these needs and are willing to pay to have them

filled. All beverages users need availability and service. The self reliant

ones, however, supplies those needs themselves.

4.4 Market Trends

The most obvious and important trend in the market is competitive priceand availability of products. This has been true for years, but the trend

seems to be accelerating. We see the major brand-name manufacturers

putting their product at competitive prices.

The most striking trend in the market is the increase in demand of

beverages in areas adjoining Gorakhpur city. There is annual compound

growth of 8% in the adjoining area. Now there is very high growth of

annual sale of parley beverages. Trend clearly shown no indication of

flattening in near future. This trend shows that now people are clearly

inclining toward the soft drink.

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4.5 Competition and Buying Trends

There is no doubt that we compete much more against coca colas brand

maza and various mineral water brands in mineral water segment likebisleri, kinley We need to effectively compete with them by getting access

to all the potential market. As there is no agency of either beverage giants.

So the future is very bright for this business.

Our focus group sessions indicated that our target segment think about

price but would buy based on quality service if the offering were properly

presented. They think about price because that's all they ever see. Theyend up in the box-pusher channels because they aren't aware of the

alternatives.

Availability is also very important. The customers tend to take the product

available to them.

4.6 Distribution Channel

Producers normally use a number of marketing intermediaries for taking

their products to users. Marketing intermediaries have been a variety of

names such as sole selling agent, marketers wholesalers, distributors,

stockiest, semi wholesalers, franchise, authorized representatives,

brokers / commission agents and jobbers. All such intermediaries

constitute the distribution channel. The depot/ showrooms and other direct

outlets of producers also form part of the distribution channel. Our agency

will directly deals with the filling plant of Parle agro Private Limited. We

will operates in Gorakhpur territory, earns lesser commission compared to

higher levels in the channel. The pattern of distribution channel will be

Manufacturer-------Distributor--------Dealer-------- ConsumerThe dealers/outlets will be selected on the following basis:

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Business reputation and standing.

Business capacity and salesmanship.

Expertise and previous experience in the line.

Financial capacity. Credit worthiness.

Capacity to offer to customer.

Good relation with consumers especially bulks consumers, sub

dealers if any.

5.Dealer compensation / Margins

Dealer margin as trade margin is no doubt the prime element in dealer

manufacture relations. So in the first place the agency will insure that thetrade margin or dealer communication is adequate to make a reasonable

profit out of the business.

Dealer Motivation

To be effective the dealers have to be constantly motivated. The agency

will constantly strive to satisfy the need of the dealers. It is aptly said thata wise firm gets good band of dealer and good dealer settles down with the

wise firm.

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Performance Appraisal of dealers

The firm will evaluate the performance of the individual dealer which is the

important aspect of channel management. This will be done to identify the

specific strength and weakness of dealers. Following criteria is set up to

appraise the dealer:

Market share sales intensity.

Storage space provided.

Inventory holding support.

Standards of service provided to customers.

Enlistment of new accounts.

Market awareness. Promotional support.

Public relation.

Timely payment of bills.

Submission of reports.

6:- MANGEMENT REPORT

We are planning to startup with strength of 10 people. Apart from the

aforementioned co-owners we will have one Accountant, and 2 sales men,

3 Driver, 3 helper and a watchman; we shall increase the work force as

and after our business grows.

6.1 Organizational Structure

Our organizational structure will be quite simple we will have sales peopleand relate helper to be handled by the co-owners while a clerk would look

after entire office department. We shall train our sales force to increase the

target market and handle the some common problems faced by the

customers.

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6.2 Personnel Plan

The Personnel Plan reflects the need to bolster our capabilities to match

our positioning. The corner stone of our personnel plan is to parleimize

productivity and minimize burden on agencys operating expenses.

YEAR 2007 2008 2009

Sales Man (2) 72,000 72,000 72,000Driver(3) 72,000 72,000 72,000

Helper (3) 72,000 72,000 72,000

Watchman 24,000 24,000 24,000

Accountant 48,000 48,000 48,000

Total Payroll 2,88,000 2,88,000 2,88,000

Total people 10 10 10

7:- FINANCIAL PLAN

7.1 Important Assumptions

1) Interest rate to be stable at 13% for the year 2008 2009, 20010.

2) Credit sales Limit will be 30%.

3) Tax rate 30%.

4) All currency value in Indian Rupees.

7.2 Break Even Analysis

Parle Distributors break-even point will be achieved in 16 Months at 8300

units each month with monthly sales at Rs.11, 28,800

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-:Break Even Analysis:-

Assumptions:-

Sales Price / unit 360/-

Variable Cost per unit (including C&F) 120/-

Total Fixed Cost F.C. 20,60,000

Contribution Margin/ Unit C.M. 16/-

BEP (F.C. /C.M.) = 1,28,750 Units

Approx sales (units/month) 8,300

Break even (months) 15.5120

Approx (months) 16

7.3 Projected Profit and Loss

The most important assumption in the Projected Profit and Loss statement

is the gross margin, which is supposed to increase. This is up from barely

5% in the last year. The increase in gross margin is based on changing our

sales mix, and it is critical.

Projected Profit and

Loss2008 2009 2010

Sales 1,35,45,600 1,42,22,880 1,44,93,792

Cost Of Goods Sold 1,19,52,000 1,25,49,600 1,27,88,640

Gross Margin 15,93,600 16,73,280 17,05,152

General and administrative expenses

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Salaries to Employees 2,88,000 2,88,000 2,88,000Fuel 94,000 1,25,000 1,50,000

Depreciation(Vehicle) 1,00,000 1,00,000 1,00,000Depreciation(Office

Equipments) 1,500 1,500 1,500Legal 5,000 0 0

Insurance 16,000 16,000 16,000Stationery 5,000 0 2,000

Advertisement 5,000 5000 5,000

Total expense 5,14,500 5,35,500 5,62,500PBIT 10,79,100 11,37,780 11,42,652

Interest on loan @13% 1,30,000 1,04,000 78,000PBT 9,49,100 10, 33,780 10,64,652

Tax @ 30% 2,84,730 3,10,134 3,19,396

Net Profit 6,64,370 7,23,646 7,45,256

7.4 Projected Cash Flow

The cash flow depends on assumptions for inventory turnover, payment

days, and accounts receivable management. Our projected collection is not

ideal, but it is realistic in this market, and hard for us to effectively

change. We're better off planning for it than ignoring it. We plan to have

inventory turn according to the quota allocated for my area. We will have

around 8 Lakhs inventory turn each month in peak season which will

comprise of the month of April to August, mild peak season comprise of the

month of March and September and October, and off season comprising of

the month of November to February.

Projected Cash

Flow 2008 2009 2010

Cash ReceivedCash from Operations:

Cash from Sales 1,35,45,600 1,42,22,880 1,44,93,792

Cash Payment

Cost of Inventory 1,19,52,000 1,25,49,600 1,27,88,640Salaries 2,88,000 2,88,000 2,88,000

Legal 5,000 0 0

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Fuel 94,000 1,25,000 1,50,000Insurance 16,000 13,000 10,000

Stationery 5,000 0 2,000Advertising 5,000 5000 5,000

Tax 2,84,730 3,11,634 3,19,396

Interest 1,30,000 1,04,000 78,000Total Cash Payment 1,27,43,730 1,33,96,234 1,36,41,036

Cash Provided by

Operations 8,01,870 8,26,646 8,52,693

Investing Activity

Security 1,000,000 0 0Vehicle 1,000,000 0 0

A. C. 30,000 0 0

Net Cash used in

Investing 2,030,000 0 0

Financing Activities

Personal Finance 20,00,000 0 0Bank Loan 10,00,000 0 0

Total 30,00,000

Less: Repayment of

loan 4,00,000 4,00,000 4,00,000

Net CashProvided/Used in

Financing 26,00,000

Net cash flow 12,71,870 4,26,646 4,52,693Add Opening Cash

Bal. 0 12,71,870 16,98,516

Closing Cash Bal. 12,69,560 16,98,516 21,51,209

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7.5 Projected Balance Sheet

The Projected Balance Sheet is quite solid. We do not project any real

trouble meeting our debt obligations--as long as we can achieve ourSpecific objectives.

Projected Balance Sheet:-

Assets:-

-:Current Assets 2008 2009 2010

Cash 12,69,560 16,98,516 21,51,209Debtors 3,66,310 2,41,130 1,12,647

Total Current

Assets16,35,870 19,39,646 22,63,856

-:Long-term Assets

Security 10,00,000 10,00,000 10,00,000

Vehicle 10,00,000 10,00,000 10,00,000

A.C. 28,500 27,000 25,500

Total L. T. Assets 20,28,500 20,27,000 20,25,500

TOTAL ASSETS 36,64,370 39,66,646 42,89,356

Liabilities and Capital:-Paid in capital 30,00,000 30,00,000 30,00,000

Retained Earnings 6,64,370 7,23,646 7,45,256

Creditors 00.00 2,43,000 5,44,100

Total liabilities

and capital

36,64,370 39,66,646 42,89,356