MITTAL SCHOOL OF BUSINESS

Course Code: MGN358 Course Title: E Business

Academic Task No: 2 Academic Task Title: Business Plan

Date of Allotment: 11/03/2021 Date of Submission: 21/03/2021

Student Name and Roll No: Nitin Patidar, B35 Section: Q1912

ACKNOWLEDGEMENT
I offer my sincere thanks and humble regards to Lovely Professional University, Punjab for
imparting us very valuable professional training in BBA Hons. I pay my gratitude and sincere
regards to AmanpreetKaur maam, my project guide for giving me the cream of his knowledge. I
am thankful to him as he has been a constant source of advice, motivation, and inspiration. I am
also thankful to him for giving his suggestions and encouragement throughout the project work. I
am also thankful to my family and friends for constantly supporting me to complete the project
and providing me an environment that enhanced my knowledge.

CONTENT
  Executive Summary
 Business Objective
 Products and Services
 Company Values
 Management and Structure of the company
 Marketing Mix Strategy
 Distribution Channel
 Logistics Plan
 Financial Plan

Executive Summary
We are starting a business of manufacturing chocolates. Name of the company is Choco Smiles Our target
market is whole Madhya Pradesh. The company will focus to capture customer by satisfying their needs
the company brand name will be Choco Smiles.
Our company will be partnership firm. The company headquarter will be at Indore Madhya Pradesh. Our
manufacturing plant will be 8DP 39 Sector 12 D former North in Indore Industrial Area Madhya Pradesh.
Population of Indore is approximately 5 million consists of 82% population of youth and children. Choco
Smiles Chocolate will target youth and children because they are more likely to prepare Chocolate more
than any other confectionery. The company earlier sell their products through retail after the successfully
the business, the company will go with E commerce the company will their products electronically. The
customers to whom our products will be supplied are retailers, wholesalers and traders in Indore, Gwalior,
Dhar, Bhopal, Pithampur, Ujjain, Gunna. The location for our manufacturing plant would be Indore.

The company segmentation of the market for Choco Smiles chocolate is based on three things
geographically chocolate are segmented target of consumer preferences in the area and are sold
in that region which consume more snack food. The Other segment is the gift segment. Giving
chocolates as a gift is a trend that is pass getting up in India list of the last segment of the market
is income because income group are ready to pay for the high quality of chocolates.

Introduction
Choco Smiles is a start-up e business with a mission of becoming a competitive high end chocolate brand
in the India. The name means “delicious”. Indeed to produce delicious chocolate the company has
strategically chosen Indore as the location in which the chocolate will be produced and sell through
online.
The reason for this is that Indian Chocolate (the plant from which chocolate is produced) has international
recognition for high quality. To produce a 100% Indian product the packaging of will also be done in
Indore.

Name of the firm

Choco Smiles

Ownership of the firm

Partnership (Partners will be Nitin and Mukul)

Slogan
“Eat healthy stay healthy”

Type of Business
Chocolate Manufacturing
Vision

To provide a place with lifetime experience and rich in taste and the market leader

Misson

Our mission is to establish a standard chocolate production Company/brand that in our own
capacity will favorably compete with leaders in the industry

Business objectives

 The general objective of Choco Smile is to produce and sell high-quality chocolate in a
way that supports social and environmental development. The company has a number of
specific objectives. One of these specific objectives is that the company wants to
optimize its use of natural resources.

 Another specific objective of the company is ensuring high quality and freshness of its
chocolate products. Another specific objective of the company is that it intends to make a
positive impact on cocoa farming in India. Other specific objectives is to make its
chocolate the preferential choice for customers.

 This it intends to achieve through creating a linkage between our customers. Another
specific objective of the company is to create high quality products that are made from
100% natural raw materials.

Targeting customers

The targeting customers for our is all age group.

 Small/ Childrens
  Young
 Old age
 All age groups

The Products that we would offers.

Choco Smile Plain Chocolate

Choco Smile Milk Chocolate
Choco Smile Fruits and Nut Chocolate

Company values
Quality
Quality assurance at the consumer who are highly conscious about the health full stop company
will provide best quality product to their interest of consumers in hygiene and clean working
environment to meet the India standard and quality control authority.
Research and innovation
Innovation will create values to our consumer full, of developing innovative research in
protections process will gain new long-time consumers of the brand and maintain high consumer
retention. A researcher will focus on the creation of high-quality product affair would develop
according to the nutritional values in positioning so did customer can maintain their diet
according to their needs.

Structure and Management of the company

The management comprises one chief executive officer (CEO) and a board of directors each
overseeing one of the areas technical management and production (TP), product management
(PM), supply network management (SNM), sales & marketing (S&M), human resources
management (HRM), public relations (PR), and accounting and administration (AAD)
  Chief Executive Officer (Owner)
 Factory Manager
 Human Resources and Admin Manager
 Merchandize Manager
 Sales and Marketing Manager
 Machine Operators
 Accountants / Cashiers
 Distribution Truck Drivers

Job Roles and Responsibilities

Chief Executive Officer – CEO (Owner):

 Increases management’s effectiveness by recruiting, selecting, orienting, training,

coaching, counseling, and disciplining managers; communicating values, strategies, and
objectives; assigning accountabilities; planning, monitoring, and appraising job results.
 Creating, communicating, and implementing the organization’s vision, mission, and
overall direction – i.e. leading the development and implementation of the overall
organization’s strategy.
 Responsible for fixing prices and signing business deals
 Responsible for providing direction for the business
 Creating, communicating, and implementing the organization’s vision, mission, and
overall direction – i.e. leading the development and implementation of the overall
organization’s strategy.
Factory Manager

 Responsible for overseeing the smooth running of the factory

 Part of the team that determines the quantity and quality of chocolate products that are to
be produced
 Maps out strategy that will lead to efficiency amongst workers in the factory
 Responsible for training, evaluation and assessment of factory workers
 Ensures that the steady flow of raw materials to the chocolate factory and easy flow of
finished products through wholesale distributors to the market
 Ensures operation of equipment by completing preventive maintenance requirements;
calling for repairs.
 Ensures that the chocolate factory meets the expected safety and health standard at all
times.

Human Resources and Admin Manager

 Responsible for overseeing the smooth running of HR and administrative tasks for the
organization
 Defining job positions for recruitment and managing interviewing process
 Carrying out staff induction for new team members
 Responsible for training, evaluation and assessment of employees
 Oversee the smooth running of the daily office and factory activities.

Sales and Marketing Manager

 Manage external research and coordinate all the internal sources of information to retain
the organizations’ best customers and attract new ones
 Model demographic information and analyze the volumes of transactional data generated
by customer purchases
 Identify, prioritize, and reach out to new partners, and business opportunities et al
 Responsible for supervising implementation, advocate for the customer’s needs, and
communicate with clients
 Develop, execute and evaluate new plans for expanding sales
 Document all customer contact and information
 Represent the company in strategic meetings
 Help increase sales and growth for the company

Accountant/Cashier

 Responsible for preparing financial reports, budgets, and financial statements for the
organization
 Provides managements with financial analyses, development budgets, and accounting
reports
 Responsible for financial forecasting and risks analysis.
 Performs cash management, general ledger accounting, and financial reporting
  Responsible for developing and managing financial systems and policies
 Responsible for administering payrolls
 Ensuring compliance with taxation legislation
 Handles all financial transactions for the organization
 Serves as internal auditor for the organization

Production Workers/Machine Operators:

 Operate machines such as evaporators, steamers and molds that are used in the
production of chocolate treats.
 Assist in packaging and loading chocolate products into distribution trucks

Distribution Truck Drivers

 Assist in loading and unloading chocolate products

 Maintain a logbook of their driving activities to ensure compliance with federal
regulations governing the rest and work periods for operators.
 Local-delivery drivers may be required to sell products or services to stores and
businesses on their route, obtain signatures from recipients and collect cash.
 Transport finished goods and raw materials over land to and from manufacturing plant or
retail and distribution centers
 Inspect vehicles for mechanical items and safety issues and perform preventative
maintenance
 Comply with truck driving rules and regulations (size, weight, route designations, break
periods etc.) as well as with company policies and procedures
 Collect and verify delivery instructions
 Report defects, accidents or violations

Marketing mix strategy

Products

Choco Smiles chocolate is made from real chocolate. It's ingredient include cocoa butter and full
cream in chocolate. Choco Smiles will by 4000 liters of fresh milk to make chocolates. The
strategy of Choco Smiles chocolate will be improving in the quality and features of product
continuously.

Price
It is an important element of the marketing mix. The price of Choco Smiles can determine
whether a consumer will buy it or not, but it can be determined easily and will tell about that
price is reasonable or not.
The strategy of Choco Smiles for price of its chocolates and will charge the reasonable and
affordable price from its competitive because the vision of Choco Smile is test that's all take in
daily. Choco Smiles will change fewer price from its competitor and will provide better quality
also. The company will also use penetration strategy because will have low prices compared to
its competitor and having long life cycle of product.
Place
The place strategy of Choco Smiles will sell the chocolate at every corner shop, super stores,
Baker shop, and even medical store also included in it. Our main customer will be the
Departmental store. Choco Smiles wants to provide chocolate at all the types and dass of
customers because the core objective of the company's taste that all text police it is possible only
when our customer will be in every corner.
Promotion
The purpose of promotion is to communicate directly with actual and potential customer. In
order to encourage them to purchase chocolates the Choco Smiles will use different promotional
tactics. Choco Smiles will use E commerce sites to promote their products, press and electronic
media to motivate the potential and inspire the actual customer to purchase the product of Choco
Smile. The sales of product in the market depend upon advertising which was one of the facts
that boost the sales of the product in the market the company will use E commerce sites to sell
their products directly to the customers, advertising can be in the form of print advertising,
banner advertising on television, advertising and one of course advertisement on internet.
The promotion is an important tool of the marketing mix because of it will not help plan then
will enable to increase its sale. The company will give incentives on different celebrations and
occasions that will inspire the children to purchase the Choco Smile chocolates. To encourage
the youth the company will hire the celebrities for advertisement of the product which will
inspire all types of consumers.

Distribution Channel
The Choco Smile chocolate company will use two level distribution channels (Manufacturer, Wholesaler,
Retailer, Consumers).

Competitors

COMPANY FOUNDED IN PRODUCTS AND

SERVICES
Nestle 1860 Choco SmilestKat,
Smarties,
Wonka
Ferrero 1940 Rocher, Raffaello,
Choco Smilesnder, Tic
 Tac, Mon Cheri,
NliTella
Mars 1911 Bolinty, Galaxy, Mars,
Snikers, Milky way,
Wrigley’s

Amul 1945 Milk Chocolate, Milk

Fruits N Nuts
Chocolate.

Hershey’s 1894 Hershey Milk

Chocolate, Choco
Smilessses, Pot of Gold,
Milk Duds, Reese’s,
IceBreaks.

Perfetti Van Melle 2001 Alpenliebe, Chlormint,

Centerfresh, Happydent,
Mentos.

Cadbury 1948 Dairy Milk, Dairy Milk

Fruit N Nuts, Dairy
Milk Shots, Dairy Milk
Roasted Almond.

Competitor Analysis

Competitive Cadbury Mars Amul Choco Smiles

Factors

Unique Selling Flavours Flavours and Quality Stability and

Proportion Quality Innovation

Products Dairy Milk, Mars and Milk Chocolate, Choco Smile

Fruits N Nuts, Snikers Fruits N Nuts. Milk Chocolate,
Dairy Milk Fruits N Nuts
Caramel Chocolate.

Price (20-50g) 20-40 50 and above 40 20-30

 Company Size Very Large Large Moderate Moderate

Market Share 19% 7% 10% Estimated 5%

Expiry Duration 1 year 1year 1 year 1.5 year

Promotion Tool Advertising Advertising Advertising Advertising and

Campaign through T.V, Sales Promotion
Personal Selling Newspaper,
Books.

Quality level High Good Good Best

The main way through which Choco Smiles will realize a competitive advantage over its
competitors is in the newness and uniqueness of its product. Choco Smiles chocolate is 100%
Indian and as such is a new variety in India with a high-end chocolate market.

Choco Smiles is to capitalize on this advantage while knowing that, first, high-end chocolate
lovers want to indulge in new and/or classic chocolate tastes and second, it is important and
essential to maintain high quality in its product as this is the only effective way of maintaining
and enhancing the product’s unique identity.

Another way through which Choco Smiles will realize a competitive advantage over its
competitors is in the uniqueness of its retail experience. Choco Smiles will offer a unique retail
experience to its customers, specifically, those who purchase its chocolate in its retail outlet(s).
Choco Smiles retail experience aims its chocolate a valuable and special item to the consumer or
any individual shopping for the perfect gift.
The other way in which Choco Smiles will realize a competitive advantage over its competitors
is in its moral standing. One of Choco Smiles moral values is respect for the environment,
customer, employees, and all those involved in the creation to selling of its chocolates.

Poor quality in its product and retail service will put Choco Smiles in a competitive disadvantage
with its competitors. Choco Smiles main strength is in the uniqueness of its product and service.
The most effective way for Choco Smiles to maintain and enhance this strength is by ensuring
top quality in its product, high quality material, retail service.

Logistics Plan

A healthy and efficient supply chain is one of the critical success factors currently driving in
India with high-end chocolate industry. Healthy and efficient supply chains enable meeting of
customer demands at advanced levels. To realize this critical success factor Choco Smiles will
ensure that it has a healthy logistic strategy or strategies. Two factors will determine the choice
of logistic strategy that Choco Smiles will use at a particular time.

The first factor is the performance-effectiveness of the logistic strategy and the second is its cost-
effectiveness. A logistic strategy is performance-effective when it enables a company to adapt
well to the flexibility of its supply chain. A logistic strategy is cost effective when its creation
and implementation results in optimum produces at reduced and necessary expenditure.

If the supply chain becomes weak Choco Smiles will consider the services of a 4pl logistics
company, which will ensure that customers receive products on time and the quality of products
is maintained. 4PL companies review a company’s supply chain to identify the problems that are
causing customer dissatisfaction.

Financial Plan

Funding
The total capital required to start the Choco Smiles Chocolate business is Rs. 3Million.

Sources of Fund

Personal Fund
The owner will invest 1.5 million into the business.
Loan
We will take loan of rest of the amount that is 1.5 million.

Allocation of Fund

 Management Pan 15%

 Marketing Plan 25%
 Production Plan 50%
 Legal Plan 5%
 Others 5%

Financial Statement

CHOCO SMILES

PRO FORMA BALANCESHEET

Assets June, 2021 Dec, 2021 March22

Current Assets
Bank 15000000 19750000 22000000
Cash 90000 100000 150000
Account Receivables 450000 564000 670000
Inventory 8300000 9000000 12000000
Prepaid Rent 150000 180000 200000
Office Supplies 27500 27500 27500

Total Current Assets 23882500 29621500 35047500

Fixed Assets
Machinery 2520000 2300000 2050000
Air Conditioner 125000 100000 80000
Furniture and Equipment 335000 300000 275000

Total Fixed Assets 2980000 2700000 2405000

Total Assets 26862500 32321500 37452500

Liabilities and Equity

Current Liabilities
Account Payable 1650000 2000000 2250000
Salaries 800000 1200000 1800000

Total Current Liabilities 2450000 3200000 4050000

Equity
Owners Fund 10000000 12000000 15000000
Drawing 500000 600000 900000
Net Income 16521500 16521500 17502500
Total Equity 27021500 29121500 33402500
Total Liabilities and Equity 26862500 32321500 37452500

Choco Smiles
Pro Forma Profit and Loss Statement

June 2021 Dec 2021 March 2022

Income

Income 25800000 38700000 8300000

Sales Discount (500000) (1500000) (2800000)
Net Sales 25300000 37200000 80200000

Less: COGs (17260255) (25890282) (52870000)

Gross Profit 8039745 11309618 27330000

Expenses
 605000 395000 894500
Advertisement and promotion
35000 10000 32400
Computer Expenses

Depriciation 111781 111781 223562

Air Conditioner Expenses 17510 7350 16159

Electricity Bill
455790 744210 13920000
Rent Expenses 330000 330000 686400

Entertainment Expenses 11377 11378 24120

Fuel Expenses 135500 195500 397200
Miscellaneous Expenses 156862 219606 440467

Office Maintenance 11750 19975 33311

Packaging Expenses 9200000 1380000 4950000
Transport Expenses 760000 1160000 2131200

Office Supplies 7000 9895 16900

Repair and Maintenance 28900 22300 56320

Salary Expenses
2472000 2472000 5438400
Legal Charges Expenses 135000 165000 330000

Telephone Expenses 210000 300000 7650000

Total Expenses
6403470 7553995 1827939