Letter of Transmittal

21 April, 2013
Mehree Iqbal
Lecturer
North South University
Bashundhara, Dhaka

Subject: Submission of Business Plan.

Dear Madam,

We are Group from Mgt 368.8, have successfully prepared our report. We have provided
substantial analysis along with market research with questionnaires that have been filled
attached at the back. We have visited the office of VLCC, Gold GYM, and Persona GYM
centre. Special thanks to Ms. Disha.A.Nahar assistance Manager of VLCC for being a guide
whenever we wanted to visit the site and talk to his associates along with the people who
filled in the questionnaires and other queries.

We have seasoned this report with practical results and financial accommodation with regards
of individual analysis of different elements from menu and raw materials. The business plan
is prepared with charts and graphs to help understand COCO-WA coconut water plans
securely and efficiently. We hope that you will accept our report and guide us in the future
too.

Sincerely,

1.
1
Page
 Table of Contents
Sl Content Pages
Company Overview 4

I Executive Summary 5

II Total Business at a Glance 6-8

III Background and Purpose 9-11

3.1 History
3.2 Current Condition
3.3 The Concept
IV Objectives 11-12
4.1 Overall Objectives
4.2 Specific Objectives
V Market Analysis 12-17
5.1 Overall Market
5.2 Specific market Segment
5.3 Competitor Factors
5.4 Other Market Influence
VI Development and Production 17-22
6.1 Production Process
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6.2 Production Requirement

6.3 Contingency Plan

VII Marketing 22-29

7.1 Market Orientation

7.2 Marketing strategy
7.3 Sales Forecasts
7.4 Contingency Plan
VIII Organization and Management 29-35
8.1 Key Personnel
8.2 Other Personnel
8.3 Management process
IX Financial plan 36-44
X Ownership 45
XI Critical Risk and Problem 46

XII Summery and Conclusion 47

XIII Appendix 48

• Financial Analysis
• Floor Plan
• Service Design
• Partnership Deed
• Questionnaire for competitor
• Target market research report
3 Page
 Company Overview
Business Plan on Coconut water
1. Name of enterprise: COCO-WA BEVARAGE LTD.

2. Name of entrepreneurs:
A. Naima Rahman
B. Ayesga Julka Anika
C. Avijit Banik
D. Zakia Afrin

3. Logo of the Company

4. Address (Office & factory):

Factory: Barishal,Bangladesh.
Office: 13/A,Bashundhara Residential Area,Dhaka.

5. Phone / Mobile no:+02 912XXXX

+088 0172 XXXXXXX

6. Fax:+02 XXXX
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7 E-mail: like.coco-wa@yahoo.com

8. Website:www.likecoco-wa.com

Executive Summery
Coconut water has traditionally been consumed as refreshing beverage among majority of
Bangladeshi people. Consumer interest in the product both as a refreshing beverage and drink
has been considerably broadening its market opportunities. The recent explosion of the
coconut water category can be explained relatively simply; it meets growing consumer
demands for natural, healthy products. There is a growing awareness of health & fitness
issues, even though obesity is on the rise across the world. While some people manage their
weight, others “offset”. Offsetting is really a token gesture, even if swapping a full fat coke
for a low calorie one is a step forward, it’ll take more than a bottle of coconut water a day to
stay healthy.

A key element that has contributed to the rise in coconut water’s popularity is due to its
perceived health benefits and it being segmented in the ‘super drink’ category.we are going to
offer such super drink named COCO-WA to meet Essential nutrients and act as a great food
supplement in accordance with a healthy diet. Back in early, people used to drink coconut
water to satisfy thirst in hot summer without knowing its actual benefit. There are only a
handful of coconut water brands gracing the shelves of specialist food stores, but all are
imported from foreign counties. By 2013, there are number of people become aware about
their health but there is no perceive coconut water brand available in Bangladesh to meet
those customers’ needs rather than foreign exported drink. Coconut water brand in the market
of Bangladesh, all vying for space within this rapidly growing and seemingly lucrative
category. Since, in terms of scalability, the coconut water market is relatively huge in
Bangladesh, we are pursuing focused differentiation business model to combine
differentiation and focused generic business strategy and specialized in making distinctive
product for niche market segmentation.

Many believe that coconut water has a wider variety and strong health benefits than drinks
that are explicitly designed for hydration and recovery and also better than natural fruit
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juices. It is not a surprise, then, that coconut water is so popular in Bangladesh, the reason
perhaps we are going to engage in this business. It will be no longer the bigger surprise that it
will take long to catch on in the whole Bangladeshi market as a legitimate alternative to more
common drinks.
 Total Business Plan At A Glance
1. Name of the Business : Coconut water (COCO-WA BEVARAGE LTD.)

2. Nature of Business : Manufacturing &Trading

3. Sector/Industry : Soft Drink industry

4. Objectives : Aiming to provide healthier soft drink.

5. Employment

Skilled Semi-skilled Unskilled

Permanent 20 10 5

Temporary 10 5 1

6. Brief Introduction of the Entrepreneur(s):

S Name & Educational Experience Business Owne

l Address Qualification in Experience rship
Other (%)
Business
1 Naima Rahman B.B.A Finance & Marketing. Supply Chain 2.5 years 25%
Diploma in Graphic Design Management
In RMG sector

2 Ayesh Julka B.B.A Finance & Economics Financial 3 years 30%

Anika Institute
3 Avijt Banik B.B.A Marketing Multinational 2 years 15%
company
6

4 Zakia Afrin B.B.A Finance & Marketing Financial 2 years 10%

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department

7. Type of Ownership: Partnership

8. Total Investment:

Initial Fixed Asset Current Asset Total

Investment
70000 1315000 3089325 4474325

9. Loan & Equity:

Loan Equity Total

1000000 5380000 6380000

10. Potential Market: Based on Behavioral, Demographics, Psychographics, Geographic

Segmentation we have divide our local customer as following groups.

Local
1.Affluent, High classed
2.The energy drinks market

3. The ‘fad followers’

4.The health conscious

5.Traditionalists
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Background and Purpose

The coconut tree has often been referred to in some cultures as the ‘Tree of Life’, due to its
versatility; as each element of the tree can be used in some facet. And now coconut water is
rapidly becoming a favorite go-to drink for athletes, nutritionists and celebrities the world
over as a healthy alternative to glucose based sports and energy drinks. Athletes and fitness
fanatics are swopping to coconut water for its high potassium and mineral content and the
promise of fast, natural hydration. Even though many of the benefits of coconut water or
many sports drinks are insignificant unless undertaking a lot of exercise, health conscious
individuals are looking for a tasty alternative to water that has no preservatives, no fat, no
cholesterol and fewer calories than your average flavored waters, fruit juices or smoothies.

Not to be confused with coconut milk, Coconut water is the juice in the interior or endosperm
of young coconut. Its water is one of the nature’s most refreshing drinks, consumed
worldwide for its nutritious and health benefiting properties. The water is actually obtained
by opening a tender, green, healthy, and undamaged coconut. Inside, its clear liquid is sweet,
and sterile and composed of unique chemicals such as sugars, vitamins, minerals,
electrolytes, enzymes, amino acids, cytokine, and phyto-hormones. In general, young and
slightly immature coconuts harvested when they are about 5-7 months of age for the drink.
For flavor, potassium, and hydration, coconut water is a healthful choice.

coconut water a super-hydrating, potassium-rich, all natural, there's no shortage of talk about
Mother Nature's tropical cocktail these days, but any "healthy" drink that gets so much buzz
and is so ridiculously tasty makes anyone wonder if it's too good to be true. The most
important features of the products are

 Pack in hygienic container

 High in potassium, free of fat, cholesterol, and sugar; low in acidity
 Contains five essential electrolytes--potassium, magnesium, calcium, sodium, and
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phosphorous
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 More than water.

 Contain bioactive enzymes such as acid phosphatase, catalase, dehydrogenase,
diastase, peroxidase, RNA-polymerases etc which help in the digestion and
metabolism
 No preservation Added
  Also a very good source of B-complex vitamins such as riboflavin, niacin, thiamin,
pyridoxine, and folates. These vitamins are essential in the sense that the human
body requires them from external sources to replenish.

Coconut water is so healthy that it can actually be injected into the human blood stream that
is not the only extraordinary and potentially surprising benefit that comes from this all natural
product. The drink has the five electrolytes that assist with hydration: sodium, phosphorus,
calcium, magnesium, and potassium. In fact, the potassium levels are so high that COCO-
WA coconut water will claim that it is more than fifteen times the amount of potassium from
some sports drinks and more than in a whole banana. This potassium is important during and
after sports because it prevents muscle cramps and speeds recovery of your muscles. The acid
levels are also less than these same sports drinks and juices. It can raise metabolism, improve
circulation, fight viruses, build your immune system, and deliver anti-oxidants to your body.
On top of these features, drinks such as COCO-WA that get their product from young
coconuts do not have fat, cholesterol, or additional sugars.
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 Objectives

Overall objectives

We’ve had cold teas , smoothies and vitamin waters but now the new trend in soft drinks,
and one many predict is here to stay, is coconut water. Coconut water is one of the well
known beverage categories in the Bangladesh due to its natural hydrating qualities, great taste
and nutritional benefits.

We’re all aware of the sentiment behind ‘you are what you eat’ but increasingly consumers
are concerned with the concept of ‘you are what you drink’. With a growing awareness of
health issues most of us are thinking twice about what we put into our bodies, be it food or
drink, and that’s now big business. It is a great source of nutrients, contains calcium and
magnesium, and the same amount of heart healthy potassium as a banana or a glass of orange
juice. And that’s just a few of its ‘super drink’ claims.

The Bangladeshi coconut water category has not exploded in the last few years but it is
highly being tipped as the next challenging thing in the drinks category as there are now
handful foreign brands in the Bangladeshi market.

COCO-WA is the only coconut water in Bangladeshi market .We are seeing compelling data
across all channels demonstrating the mainstream appeal of COCO-WA. We hope that, in
natural & health specialists, COCO-WA will be their No.1 packaged drink of any non-
alcoholic drinks including any water or cola brand. Nothing seems to get the public following
a trend faster than celebrities adopting it. From fashion to food fads and diets, eco cars to
technology, a hungry press soon gives the habits of the rich and famous extensive coverage
and rockets products and brands into mass purchases.
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Specific Objectives
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Product quality: Our products are the result of long and intensive searches for the best
suppliers around the Bangladesh, not only in terms of our high quality demands, but also to
satisfy and meet our high ethical standards. COCO-WA, coconut water is being processed
and packaged within a short period of time after harvest using the most modern production
techniques. All our products are organic and free from all forms additives such as
preservatives, flavorings or colorings’.

Management development: Our Company’s goal is to provide consumers with natural,

healthy, and refreshing products. We work sustainably hand in hand with nature to ensure
quality and freshness in all of our products. Our Vision is to become leaders in the natural
beverage industry, leading the competition, and becoming a ground-breaking company in
Bangladeshi market. We will provide natural products obtained through sustainable, socially
responsible, eco-logical and processes, whenever possible.

Social concern: As if there are not enough health claims, our brand will add the ethical
touch. ‘Organic’ and ‘Fair-trade’ coconut waters from the beginning spin. Though ‘Not from
concentrate’ is also appearing, we will use concentrates. Our Packaging will also play a part
with various claims about recycling and sourcing of materials.

Market Analysis

Overall Market
Like other developing and developed countries, Soft Drinks Industry is getting much
popularity in Bangladesh. The number of firms operating in this industry is getting increased.
The market is also increasing in a greater portion. Today most of the people in both urban and
rural areas are taking soft drinks in a max amount.

To capture this market many global brands are competing with local brands now. However
the local brands (Mojo and Pran) are much successful even though the global brands (Coca
Cola, Pepsi) are present.

Our local brands understand the psychology of our people more than the global brands.
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That’s why they are showing much more effectiveness in this sector. Besides, local brands
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are using technology based production plant with mass production and order to stock basis.
Skilled and lower paid manpower, and innovative marketing projects are also the factors that
are associated with success of these firms acting in this industry.

In Bangladesh soft drinks are found in some different types, these are:

 Carbonated beverage.
  Juice or flavored drink
 Energy drink

No. Name of Manufacturer Brands

1. Abdul Monem Limited Coca-Cola, Sprite, Fanta

2. Agriculture Marketing Company Limited Pran

3. Akij Group Mojo, Lemu, Frutika

4. Global Beverage Limited Virgin

5. Globe Soft Drinks Limited Uro Cola, Uro Lemon

6. Partex Beverage Limited RC Cola, Lychena

7. Transcom Beverage Pepsi, 7up, Mirinda

Soft drinks have a huge market in Bangladesh because of the huge population density derived
demand. Most of the soft drinks are of global brand. The production of the soft drinks is
franchise or license basis.

The soft drinks market in Bangladesh consists mainly of seven companies.

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Porter’s five forces for soft drink industry

Industry boundaries may change over time as customer needs evolve or new technologies
emerge that enable companies in hitherto unrelated industry to satisfy establish customer
needs in a new way. Industry competitive analysis begins by forcing on the overall industry
in which a firm competes before market segments issues are considerable in the following
Porter’s five forces model section.
New entrant:
Though our potential competitors companies currently competing in the market, new entrant
is not a strong competitive pressure for this industry as there are so, many brand who are
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entering into the Bangladeshi market every now and then. Soft drink is consolidated and
growth is low. It is very difficult for new and unknown entrant to start competing against the
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existing firms. Some other barriers are also their as high fixed cost of warehouse and other so
many expenses and economies of scale, thus new entrant cannot compete in price without
economies of scale. These high capital requirement and market saturation make it extremely
difficult for the new company to enter the soft drink industry.
Substitute:

Substitute products are those products competitors which are not present in the soft drink
industry. Substitute of this industry are strong competitors

 Substitutes are strong for soft drinks industry because; Water bottle, energy drinks,
fruit juices, coffee ,different kind of flavored tea are increasingly popular with trend
to be a more health conscious consumers.

 There are progressively more varieties in fruit juices and coffee that appeal to
different consumers tastes but appears healthier than soft drinks.

 Coffee and tea are competitive substitute for our ‘’COCO-WA’’ because they also
derived from nature. The consumer who consumes lot of soft drinks may substitute
coffee because if they want to keep caffeine and lose the sugar and according to the
taste.

 Specially blend coffee becoming very famous and popular because of so many coffee
café are opened and offers many different taste to the consumers.

 Intake of coffee and fruit juices instead of soft drinks very healthier and very cheap in
cost also.

Supplier’s power:

Any business requires inputs—labor, parts, raw materials, and services. The cost of inputs
can have a significant effect on company’s profitability. Whether the strength of suppliers
represents a weak or a strong force hinges on the amount of bargaining power they can exert
and, ultimately, on how they can influence the terms and conditions of transactions in their
favor. Suppliers would prefer to sell at the highest price possible or provide with no more
14

services than necessary. If the force is weak, then company may be able to negotiate a
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favorable business deal for us. Conversely, if the force is strong, then company is in a weak
position and may have to pay a higher price or accept a lower level of quality or service. there
is huge number of firms present in the soft drinks industry, thus Supplier for the soft drinks
industry holds much competitive pressures. Since we are going to compete in soft drink
market, we only focus on coconut water which will eventually gives us higher bargain power
over suppliers.
Buyer’s power:

Bargaining power of soft drinks industry are mainly superstores, general stores and
restaurants. The soft drinks companies distributed to beverages to these stores for resale to
the consumers. The bargaining power is very strong because superstores and general stores
buy large numbers of soft drinks, allowing them to buy at lower price. There is another
reason also that many number of firms are in the soft drink industry so, different brand of soft
drinks are available in the market.

Rivalry:

Rivalry among competitors is often the strongest of the five competitive forces, but can vary
widely among industries. If the competitive force is weak, companies may be able to raise
prices, provide fewer products for the price, and earn more profits. If competition is intense,
it may be necessary to enhance product offerings to keep customers, and prices may fall
below break-even levels.

The competitive pressure from rivalry sellers is greatest competition that faced by the firms present
in the soft drink because Pepsi and coca- cola are acquiring most of the market in this industry and
few other companies are also growth at the faster rate because of that the rivalry competition will
be more in this industry, pran,mojo, these are major players in the industry. The rivalry will be higher
because;

 Brand name loyalty is competitive pressure because brand key customers loyalty
survey shows that brand with the greatest customers loyalty in industry. PEPSI,
COCA COLA have greater loyalty than other energy drinks and famous brand name.

 Distribution channels are very vast and because of this they are competing with each
15

others.MOJO has the strongest distribution channels in the whole country.

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 Another companies are also growing and acquiring market share and increasing the
distributing channels with variety in products so it the major competing thing in the
industry.

In short, the stronger each of those forces is, the more limited is the ability of establish
companies to raise price and earn profit. Within porters five force framework, a strong
competitive force can be viewed as a threat because it depressed profit and vice versa. From
above analysis, we can assume that our coconut water industry has moderate threat of new
entrance, substitutes are very high, bargaining power of supplier is low, bargaining power of
buyer is moderate, rivalry among competitors are high. This clarify that we have moderate
higher competitive force in the soft drink industry.

Market Segmentation
We have observed and analyzed the market and based on the nature of the market we
segmented the market in the following sectors:

Geographic Segmentation:

 Sylhet
 Rajshahi
 Rangpur
 Chittagong
 Dhaka
Demographics:
 Individuals
 Family
 Sportsman
 Business buyer
Psychographics:

 Higher class
 Higher middle class
 Middle class
Behavioral:
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 Sick people
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 Health conscious
 Sophisticated who take the new product from the market

Analyzing all the segments, we decided our target market according to our product category.
The target customers of COCO-WA are niche. The company decides to charge Tk. 50 for 250
ml bottles, if we consider price versus taste received then we can see that taste received is
more in value. Therefore charging the mentioned price is justified. Since we are new to this
market, we will only focus on 250 ml bottle production, to evaluate the actual need of target
group. However, our objective is to focus on five distinct key consumer groups include the
four segments, who are most likely to consume or purchase coconut water:

• Affluent, High classed, health conscious Westerners who can afford to buy fresh, organic
produce and super foods.

• The energy drinks market; athletes who believe that coconut water can increase
metabolism, rehydrate the body, replenish natural energy levels at a much faster rate as well
as help prevent cramping after exercise.

• The health conscious who seek coconut water for its zero fat, low cholesterol and low
calorie benefits and sweet taste.

• The ‘fad followers’; who will purchase coconut water because it’s ‘the in thing’, however
that is not to say they are not a key cog in the consumer wheel but their interest is often
fleeting and should not be overestimated. They see this product as a lifestyle choice and
accessory.

• Traditionalists; people from the Tropics or those whose heritage originates from the
Tropics. Coconut water is an everyday part of their diet, while they may be aware of some of
the health benefits the coconut may or may not contain this is not their primary reason for
consuming but is more of a by-product.

Competitive Factors
Our soft drink industry follows some innovative, strong and continuous improving production
and marketing techniques. Although quality is not the prime concern of our people, they
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mainly prefer cost effective soft drinks. The local companies are competing with global
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brands on the basis of lower cost. They are capturing the urban markets by offering some
innovative marketing plan and offer. In rural areas they are very strong in distribution
strategy and price effectiveness. Since we are targeting only a few segments we try to focus
on our unique proposition. There are lots of competitors available in the market after all we
have first mover advantage in our product offering and after analyzing overall market we
build some competitive factors to compete in the market.
They are:

Thus, as a new entrant we have to consider few issues such as

 Strong distribution network required since Weak distribution networks mean goods
are more expensive to move around and some goods don’t get some goods don’t get
to the end customer. The expense of building a strong distribution network positively
affects our Coconut Water industry.
 As a first mover in Coconut water industry in Bangladesh we have to build strong
brand name to compete, as a new competitor.
 High capital requirements in order to compete in the market.
 Patents limit new competition because it covers vital technologies which make it
difficult for new competitors to achieve
 Customers are loyal to existing brands. It will take time and money to build a brand.
 Though there are many beverages available in Bangladeshi market, we have moderate
Entry barriers as Coconut water as it is the first Bangladeshi coconut beverage.

To reduce the threat of substitutes the tactics we will use are:

 Staying closely in tune with customer preferences and differentiating our offered
product by branding.
 Advertising to differentiate more than one firm can bear.
 Collective advertising for an industry may be more effective.

The reasons of having cost advantage over suppliers are

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 Providing just-in-time deliveries.

 Enhance the value of goods and services supplied by making effective use of
information about customer needs and preferences.
 Speed the adoption of new technologies.
 Increase power by forming a buying group of small producers to buy as one large-
volume customer.
Threats of rivals can be reduced by employing a variety of tactics we actually adapted by
 Minimizing price competition,
 Distinguishing our product from your competitors’ by innovating or improving
features.
 focusing on a unique segment of The market, distributing our product in a novel
channel, and trying to form stronger relationships to build customer loyalty

Other Marketing Influence

Just as the decisions and actions of strategic managers can often change an industry’s
competitive structure, so too can changing forces in the wider macro environment, that is, the
border; economic, global, technological, geographic, social, and political, context in which
companies and industries are embedded ,change in the force in the macro environment can
have a direct on any or all of the forces in Porter’s model, there by altering the relative
strength of these forces and, with it, the alternative of an industry. . The soft drinks industry is
under the influence of macro-environmental factors. For instance, it immediately reacts to the
entrance of new players and M&A activities. The ongoing globalization, social trends,
product innovation, consumers’ lifestyles and changes in buyer preferences also impact the
soft drinks industry.

Global Forces

Falling barriers to international trade and investment have made foreign companies to enter in
Bangladesh, thereby increase the competition and lowering profitability.

Macroeconomic forces
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The high price of coconut water is also an inhibiting factor to growing customer base,
especially in view of slow acceptance and uncertainty over taste and benefits. Coconut water
is significantly more expensive than sports drinks, the category coconut water is often
compared to, and even more so when compared to bottled water when positioned as a source
of hydration. Challenges to claims from media and consumer lobby groups: As coconut water
has been getting more into spotlight in Bangladesh, it drew attention of consumer groups,
media and nutrition experts many of whom are weighing benefits of coconut water versus
claims and pricing.

Technological
Technology is used at every step of COCO-WA value chain – collecting water from tender,
bottling
operations and storage at retail shops. Following technological factors have an impact:
 New machines and processes impact the manufacturing operations. Adoption of new
technology allows a company to manufacture more efficiently, with better quality and in
greater quantity.
 The beverages need to be cooled before consumption. Therefore, consumption is
limited

to the places that can provide the facility of cold storage

Demographic forces

Bangladeshi store shelves currently feature a multitude of beverage brands, such as Pran,
Coca-cola, Pepsi, Sezan, Frutika and others. Coconut water is increasingly featured in
mixes at gyms, yoga studios, outdoor events and festivals in the country. Nonetheless, despite
the entire buzz generated by the new trend, sales of coconut water in Bangladesh remain
small in actual value and volume.

Social trend

People in Bangladesh use to drink coconut water regularly as a well supplement of

water .people typically buy tender coconut from moving vendor beside the roadside. They
don’t drink coconut water just for water substitute but also taste remains an issue.
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Political and Legal Force

The Political / Legal / Regulatory environment is often a direct consequence of the political
parties in power, which represents the popular opinion of the citizens of the region. The rules
and regulations created by the politicians have significant influence on the cost of running a
business and the way it can market products and services. The soft drinks market in
Bangladesh experienced a drop in recent years because of political uncertainty; slow down in
investment and crackdown on illegal roadside outlets.

All in all, coconut water industry has some potential for further growth in Bangladesh as the
benefits claimed by coconut water are aligned with the health and wellness movement in the
country. Additionally, growth of coconut water could help bring more life to the mature and
largely stagnating juice category in Bangladesh, provided coconut water sales can reach
wider audience. However, so far the overall growth in sales of coconut water in the next five
years is only expected to see single-digit rise in volume terms. The challenges outlined above
will remain on the agenda, and careful product development, pricing and marketing strategies
are needed to support growth. While a taste of pure coconut water will likely remain an issue,
marketing the products as a part of a healthy juice or smoothie mix can help to expand
consumption occasions. Also coconut water, if positioned as a healthier alternative to soft
drinks rather than soft drinks or water might have a better chance at growth among ordinary
consumers.

Development and Production

Production process

Coconut Water of 6-7 month stage is first filtered through pressure filters and then mixed
with the desired proportion of additives plus sugar and concentrated to the appropriate level.
The water is then packed in pouches/cans and retorted in an autoclave, after which it is
cooled in a stream of cold water.
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 Flow chart

Receiving and storage of coconut

Receiving and storage of coconut

Preliminary washing of coconuts in potable water

Sanitizing with chlorinated water for 15 minutes

Storage of coconuts in a clean environment and air drying off the ground

Cutting of coconuts on a sanitized plastic cutting board

Filtering the coconut water through a sanitized silk screen cloth

Collection of coconut water in a sanitized container

Transfer to a cooling tank

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Store at minimum temperature 4

Distribute on ice
 Quality Control and Standards
Pre and post harvest factors as well as storage conditions can negatively impact on the
quality of coconut water. By applying a good practice to avoid contamination and
temperature abuse at every step of the processing chain, procedures learnt from experience
and verified by scientific testing. Good practice is science based, constantly being improved,
cost effective, ensures the production of safe high quality products.

Project Implementation Schedule

To set up a new factory with a specific plant lay out we need approximately 1 year of time.
Reducing the risk of microbial contamination .All tools and implements must be properly
cleaned, sanitized and air-dried in order to reduce the risk of microbial contamination during
processing operations.

1.Production capacity-

Product Units Time Quantity Unit Taka

Price(per)
Coconut 10000 1 year 30000pcs 50 150000
Fresh water 10000 1year 20000ltr 20 40000
Bottle 10000 1year 10000pcs 10 100000

2. List of Fixed Assets and their Depreciation:

Item Price (Tk) Proposed (Tk) Depreciation (TK)
Building 1300000 65000
Machineries & 800000 1200000 120000
Equipment
Furniture & Fixture 475000 400000 80000
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Vehicle (cycles for 45000 56000 11200

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delivery persons)
Others (Specify) 400000 400000 67000
Total 1315000 2000000 271200

Rate of depreciation: Building@ 5% each year, Machineries & Equipment @ 10% each year,
Furniture & Fixture and Transport @ 20% each year is considered.
3. Cost of Raw Materials (yearly): The prices of raw materials are in wholesale rate)

Description of Unit Quantity Unit price Cost(taka)

raw materials
coconut 1000 1000 20 20000
Sugar 1000 500 25 12500

4. Workforce Engaged in Production:

Designation Salary (yearly)

Accounts Manager and Admin.(1 person) 240000

Floor Manager(1 person) 180000

Team manager(1 person) 120000

Staff, Delivery person(6 people) 792000

Total 1332000

5. Factory Overhead Cost:

Description Cost (yearly)
Utilities (gas, electricity, water) 180000
Repair and maintenance cost 23500
Rent (land, building, machine etc. if any) none
Others (Specify) 15600
Total 219100
******* Utilities expenses are calculated at industrial rate
6. Production Cost:

Sl Description Cost (yearly)

1 Cost of Raw Materials 1016435
2 Wages 1332000
24

3 Factory Overhead Cost 219100

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Total 2567535

8. Repair and maintenance cost of fixed assets

Fixed assets Repair and Maintenance cost

Building 2lakhs
Machinery 3lakhs
 Quality Assurance By COCO-WA
Coconut water is a relatively new phenomenon in Bangladesh, and the past two years have
seen the expansion of the category once largely relegated to ethnic food stores.

However, the category's further growth is predicated on the ability of the marketers of
coconut water to overcome a number of challenges, such as taste, pricing especially given the
current state of the economy and consumer confidence as well as skeptical attitude of many
consumers and nutrition experts with regards to benefit of coconut water, attitudes expressed
on the pages of magazines, news networks and so on. While efforts are being made to address
the issue of taste and price, winning the debate over nutritional benefits of coconut water is
likely to be the most difficult task marketers of the products will have to deal with.

COCO-WA has hand-harvests the most delicious and nutritious young green coconuts from
around the country to bring customers a Natural Coconut Water. With five essential
electrolytes, including more potassium than one whole banana, COCO-WA water assures
rapid hydration and replenishment. COCO-WA coconut Water is all natural, so naturally it
has zero fat, zero cholesterol and zero added sugar. There was a time not long ago when
people had to shinny up a tree and machete-open a coconut to experience this miracle. Now
it's easy to get quality product, Through COCO-WA coconut water.

COCO-WA Natural Coconut Water, 14 oz contains:

 26% more potassium than one whole banana (450mg)

 Five essential electrolytes
 Gluten free, fat free, cholesterol free, and zero added sugar
25Page

Organization and Management

Key Personnel
Organizational Structure: Our management team is comprised of people with many years
of experience. Our philosophy is focus on the customer’s needs. We have a chief Financial
Officer and four directors reporting to the President and CEO. Part-time positions staffing the
customer support desk will be filled as needed and reporting to the Director of Operations.
Seven regional sales managers will be contracted as commissioned resellers and reporting to
the Director of Business Development.

S Name Experience Qualification

l
1 Owners

2 Accounts and Admin Min 5 years MBA/ M. COM

3 Floor Manager BBA/MBA

Min 3-5 years
4 Team Manager Min 2 years BBA

2. Associate/Partner Organizations

Although most of the SME businesses have partner organization, this coconut water business
does not have any partner organization. It runs alone confidently and with a successful
manner. But we have planned that if there is any better opportunity to work with any reputed
organization as partner.

3. Succession Plan:

In absence of the proprietor we will appoint a board of management to overlook our business.
26

The board of management will have the power of attorney so that they will be able to take
decision by their own. As a result the management decision will be decentralized so the
Page

company will enjoy a lot of flexibility.

4. Business Start-up Activities and Cost:

Sl Business Start-up Activities Time Cost

1 Business Plan preparation 60 days 8000

 2 Registration and license for business 6 days 2000

3 Application for loan - -

4 Contract/Agreement - -

5 Purchase of land/ Rent (only time) - -

6 Connection of utilities (gas, electricity, water) 1 month 50000

7 Recruitment 15 days 5000

8 Others 5000

Total 70000

5. Office Equipment:

Fixed Asset Cost Duration Depreciation

Table 15000 5 years 5%
Chair 5000 5 years 5%
Total 20000

6. Salary of the Employees:

Sl Designation Salary (yearly)
1. Accounts Manager and Admin. 240000
2. Floor Manager 180000
3. Team banager 120000
4. Staff 792000
Total 1332000
27

7. Administrative Expenses:
Page

Sl Description Ref. Cost (In Taka)

1 Depreciation of Office VI. Organization and 305325
Equipment Management Plan- (5)
 2 Salary of Employees VI. Organization and 1332000
Management Plan- (6)
3 Office Rent
4 Office Utilities (gas, electricity, 5000
water etc.)
5 Postage, Telephone etc. 5000
6 Stationaries 5000
7 Entertainment 5000
8 Others (Specify)
Total 1657325

Management Process
1. Monitoring and Evaluation (M&E):

The managerial structure will be such that the immediate upper manager can imply some
power over its junior sector. In order to maintain quality we will use six sigma processes by
which we will be able to reduce up to 99.64% defects from our products. TQM will be
another handful tool for us to ensure good quality of our products. As it will be regarded as a
health drinks so we need to be defect less. So to provide good tasty and pure coconut water to
our customer we will have a good supervision system. We will have super visor managerial
post in every level of our production.

Evaluation: Our objectively verifiable indicators of success primarily will be our sales. We
expect to increased sales from our third quarter. R.O.I and R.O.E will be also being an
indicator of success. We expect to have a very high R.O.I, because our investment will be
28

comparatively low, because here we won’t require big amount of R & D. And as a new
product of its kind it will be able to attract a huge amount of sales.
Page

2. Business Social Responsibility (BSR):

 Education scholarship to poor students

 Tree plantation programs
 Help to different social & cultural organization
 Help to poor women & children.
3. Research and Development (R&D): We will try to blend Apple, grape, Cranberry, with
coconut water. The opportunities are plentiful. The opportunity for a cranberry/coconut blend
is particularly interesting as a 100% cranberry juice is not possible due to its inherent
tardiness but blending it with coconut water presents a very interesting low calories, healthy
product. Also blending high calorie products like apple and red concord sharply reduce per
serving calories while coconut water imparts minimal flavor. Health benefits aside, what
makes coconut water so compelling is that standard for

We will have state-of-the art facility in R&D sector. We will have an advanced culinary
center & test kitchen focused on developing & tailoring our products. In addition, the facility
will house a pilot manufacturing plant that will allow researchers to quickly test new product
ideas & support efforts to significantly accelerate the pace of our innovation.

4. Training & Development: Our Company will be built around two core assets, our brand
& our people. That’s why our team requires a lot of training process. We believe that work is
more than a place you go every day. It should be a place of exploration, creativity,
professional growth & interpersonal relationship. Training is expensive but without training
is more expensive.

 Training & Development = Standard performance – Actual performance

 Training is the process of altering employee behavior & attitudes in a way that
increase the probability of goal attainment. Our main objective in training is to help
the organization to achieve our purpose by adding value to our key resources.
 Develops the competences of employees & improve their performance.
 Help people to grow within the organization in order that, as far as possible its future
29

needs for human resources can be met from within.

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 Reduce the learning time for employees starting in new jobs on appointment, transfers
or promotion & ensure that the become fully competent as quickly & economically as
possible.

Training process:

we will follow the underlying model to train our employees.

  Organizational objectives
 Needs assessment
 Training objectives
 Select the trainees
 Select the training method & model
 Choose a means of evaluating
 Administering training
 Evaluating the training

Training method:

 On the job training

 Off the job training
 Orientation
 Lectures
 Role playing
 Job rotation
 Audiovisual method
 Apprenticeship
 Internship
 Laboratory training.
30
Page

Marketing

Marketing Orientation

Consumers are always looking for higher quality products which are resulting in the move by
the retailer to stock more on better quality and higher end merchandise. We did Careful
pricing, potentially through multipacks for portable formats for better value, as well as retail
distribution strategies that see stronger presence at discount retailers can help to drive trial
purchases and volume growth. We believe in Last but not least, learning from marketing
mistakes and adjusting campaigns our endeavor is to reflect better product level with
nutritional content and avoid bombastic and unsubstantiated claims to improve product
credibility and support growth.

COCO-WA is very market orientated, following the release of totally different product like
coconut water drinks in Bangladeshi market, we went under extensive market research to find
what people liked, and preference of consumed product in the Bangladeshi market .COCO-
WA is the beverage that provides deep-down refreshment for the mind and body because
only chilled COCO-WA makes a moment more special by combining the unique COCO-WA
trend with what’s real and genuine providing a source of healthiness in everyday life.
31
Page

Marketing Strategy

SWOT Analysis
We went through SWOT analysis to give a good insight of the strategic capabilities and
resources available and the way these capabilities strengthen the competitive advantage as
well as allow the company to exploit new opportunities. SWOT framework analyzes both
internal factors (strengths and weaknesses) as well as external factors (opportunities and
threats) that define the market environment as well as capability of a firm to respond to the
market conditions. At the same time, distinction is also made between positive factors
(strengths and opportunities) and negative factors (weaknesses and threats).

Strengths

♦ Coconut water is perceived as a super food and exotic and though many of the claims
may not have been proven many people are buying into the perception of it as a
healthy alternative to soft/sports/energy drinks.

♦ It’s a cheap product to source and arguably cheaper labor.

♦ Its hydration properties also reduce hangovers.

Weakness

 The ambiguity over what can be termed as natural, organic and a super food may
affect how coconut water is marketed and in turn interpreted to the market.

 Coconut water has a varying prices scale from the lower end Grace Coconut water.
This confuses the market place and cheaper brands could undermine those brands that
invest in marketing spend and need to recoup their investment through a higher RRP.
Excessively over priced brands may be the first to fall as the market develops a
32

perceived price band.

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Opportunities

 Emerging coconut water/energy drinks market in the Bangladeshi market has not been
fully tapped into. With more advertising it can grow significantly.
  If lauric acid (found in mother’s milk) is in fact present in coconut water then there
could also be scope to market coconut water to expectant mothers and new mothers as
a supplement to their diet.

 Tapping further into the health market.

 Diversification beyond just flavored varieties.

 The lunchbox, as a healthy alternative to sugary soft drinks for kids and adults.

Threats

 The unsubstantiated health claims and benefits.

 Discreditation. Could coconut water and the super food market simply be a fad that
will eventually lose momentum only to be replaced by the next fad?

 Too many brands fighting for a slice of the market.

 Supermarkets – who they sell and how they position and retail coconut water

 poor pricing could put off consumers

Pricing
Strategies

We have decided to set a reasonable price for our product. We considered many factors while
33

setting the pricing policy, such as

Page

Setting the pricing objectives

Our main objective is to maximize market share. Since our business strategy is focused
differentiation and targeting only niche segment, we have set the moderate low price
assuming that the market is price sensitive.
Determining Demand

Each price will lead to different level of demand and therefore have a different impact
on company’s marketing objectives.

Estimating costs

We have estimated the cost and want to charge a price that covers the cost of production,
distribution and selling the product, including a fair return for its effort and risk.

Types of cost and level of production

There are two types of cost: a) fixed and b) variable. In our new product development project
fixed cost is 20, 00,000 taka. Fixed cost includes- machinery, monthly bills, and salaries of
employees and so on, regardless of output. There are some variable costs like-cost of bottle,
packaging and so on. These costs tend to be constant per unit production. We have estimated
that per unit variable cost is Tk. 30 for 250 ml.

Selecting a pricing method:

We have chosen the target costing method to set price for our product; pricing that starts with
an ideal selling price based on customer considerations, then target cost will ensure that the
price is met.
34 Page

Promotional
Strategies
To acquire a strong position in the market, we need to give special emphasis on effective
promotional activities. In order to get the maximum market share and let consumer know
about product healthier attributes we will have to use all four tools of marketing promotion.

Advertising

We initially will give more emphasis on paper ads and TV commercials. Because, advertising
through these media is the most effective way to reach the customers and position our
product in their mind. We are anticipating that this will have a massive impact on the
teenagers and other enthusiasts. Few neon signs and bill boards of COCO-WA also can be set
up in some core points of the city. We hope to reach 75% of our customers through effective
advertising.

Personal Selling

We will inspire and train the sales persons of the retail stores to convince people to buy our
product when they will come to buy any drinks item. WE are going to set up point of
purchase in the retail chain stors like Meena Bazer, Agora etc. There sales persons will
inform the consumers about the cool refreshing taste of COCO-WA and describe the
nutritious aspects. We hope that will play a significant role to increase our sales.

Promotional Tools

We have also planned to apply some promotional tools. Initially for sometimes we will
distribute our product in sample size just make our new product familiar with the customers.
This will be the market-testing period for our product. Later, we may apply the strategy of
giving gifts, lucky coupons, tour tickets depending on the market and competitive situations.
35

Public Relations
Page

We have future plans to hold seminars, commit social development, supporting social
activities, to arrange cultural functions and mobile game shows for publicity purpose.
 Distribution Channel
A set of interdependent organizations involved in the process of making a product or services
available for use on consumption by the consumer or business user. Our Company maintains
a four-tier distribution channel. This Company does not more retail sale directly from the
production center, COCO-WA bottle move form factory to dealer's agents, agents to
wholesalers, wholesalers to retailers and finally retailers to consumers. The industrial buyers
mainly sell coconut water to the wholesalers. They also sell to retailers besides the
wholesalers. 'The wholesalers mainly sell this product to the customers besides the retailers.
They also sell to the customers beside the retailers. The customer mainly collects bottles of
coconut water from retailers. Wholesalers of the company are trained and contractual. The
company divides sales territories among the wholesales. It provides commission and other
financial facilities to the wholesalers to motivate them. The company does exclusive
distribution and has power of controlling wholesalers.

Services and Warranties

As we are targeting to the top most customer satisfaction and building long-term customer
36

relationships, there is no alternative for us rather than providing top quality service. Giving
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the customers timely and instant quality service is our primary concern. We even planned to
open few customer service centers where will response to customers’ interactions. We will
collect information, suggestions, ideas and opinions of the customers through these centers
and will innovate and modify our product accordingly. We also will change any defected
product.
 Financial Plan

1. Fixed Assets:
Item Present (Tk) Proposed (Tk)
Land
Building
Machineries & Equipment 800000 1200000

Furniture & Fixture 475000 400000

Vehicle (Van, Truck if any)

Others (Specify) 400000 400000

Total 1315000 2000000

2. Current Asset:
Description Duration Ref. Present (Tk) Proposed
(Tk)
Raw materials V. Operation 1016435 1016435
expenditure Plan -(6)
Wages V. Operation 1332000 1332000
Plan -(7)
Factory Overhead V. Operation 219100
expenditure Plan -(8)
37

Marketing expenditure IV. Marketing 350000 350000

Page

Plan-(8)
Administrative VI. Organization 1657325 1650000
expenditure and
Management
Plan - (7)
Total 3089325 3082000
3. Start-up Cost : Organization and Management Plan - (4) = Tk 70000
4. Total Investment: Financial Plan- (1+2+3) = Tk 4474325

5. Sources of Fund:
Description Loan Equity Total
Present Proposed Present Proposed Present Proposed
Bank/ Other Bank/F
FI s I
Land
Building 120000 1800000 3000000
0
Machineries 32000 480000 480000 720000 800000 1200000
0
Furniture 19000 160000 285000 240000 475000 400000
and fixtures 0
Transportati
on
Business 28000 28000 42000 42000 70000 70000
Start up cost
Others 160000 240000 400000
(specify)
Total fixed
asset
Net current
assets
Total 53800 159600 3 807000 5000000 134500 5070000
Investment 0 0 3 0
0
38

0
Page

0
0
0
6. Schedule of Loan Repayment:
Year Total Payment Total Principal Balance
Interest
1 279219.01 130710.09 148508.92 851491.08
2 558438.02 239241.55 319196.47 680803.53
3 837657.03 322282.18 515374.85 484625.15
4 1116876.04 376025.14 740850.90 259149.10
5 1396095.05 396095.05 1000000.00 0.00
* Monthly payment = 23268.25
*Amount of Loan = 1000000
7. Income Statement:

Items Year 1 Year 2 Year 3

Sales 3960000  4435200  5100480
(-) Net VAT (594000)  (1665280)  (765072)
Net Sales 3366000  3769920  4335408
(-) Cost of Goods Sold (2346750) ( 2464087)  (2587291)
Gross Profit 1019250  1305833  1748117
(-)General (1740191)  (1827200)  (1918560)
Administrative and
sales expenditure
Net Profit Before (720941)  (521367)  (170443)
Interest and Tax
(-) Interest on bank 239242 (322282)  (376024)
loan
Net Profit Before Tax (960183)  (843649)  (546467)
(-) Tax    
Net Profit After Tax (960183)  (843649)  (546467)
39

* Sales have been considered to grow at a rate of 10% in year 1, 12% in year 2 and 15%
Page

in year 3. COGS and General Administrative Sales and Expenditure have been
considered to grow at 5%.

*** Tax & VAT payments are calculated according to special TAX & VAT payment
specification for SME Businesses from Bangladesh Bank
 Net Income(Trend analysis)
0
2013 2014 2015
-200000

-400000
Net Income (Times)
Axis Title

-600000

-800000

-1000000

-1200000

8. Break-Even Point

Description Fixed Cost Variable Cost

Variable Cost    
Labor and Wages    1332000
   1398600
   1468530
1541956
Fixed Cost    
Net fixed asset  2644675  
 2339350  
 2034025  
 1728700  
Total Fixed Cost  8746750  
Total Variable Cost    4741086
40

* Labor rate has a growth rate of 5% each year.

Page

Break even  
Year 1 0.91
Year 2 0.69
Year 3 0.49
* For the appendix – break even calculations

Year2 – 233950/ (3960000-1398600) = 0.91

Year3 – 2034025/ (4435200-1468530) = 0.69

Year4 – 1728700/ (5100480-1541956) = 0.49

Break Even Point(Trend analysis)

1
0.9
0.8
Break Even Point(Times)

0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
2013 2014 2015

9. Projected Balance Sheet

Item Current Year Year 1 Year 2 Year 3

ASSETS AND      
PROPERTIES
Current Assets      
Cash and Bank balance 2989325 3288257.5 3348044 3437723.7
5
Inventory 100000 110000 112000 115000
Accounts Receivables - - - -
41

Prepaid Expenses - - - -
Page

Other current assets - - - -

Total Current Assets 3089325 3398257.5 3460044 3552723.7
5
Fixed Assets
Preliminary expenses 70000 - - -
Machinery & 800000 880000 896000 920000
equipment
Furniture & Fixture 475000 522500 532000 546250
 Security Deposits - - - -
Land & Building 1800000 1980000 2016000 2070000
Rental advance
(prepaid rent)
Vehicles & Transport
Other fixed Assets 400000 440000 448000 460000
Less accumulated 305325 305325 305325 305325
depreciation on all fixed
assets
Total Fixed Assets 3239675 3517175 3586675 3690925
LIABILITIES AND
OWNERS EQUITY
Liabilities
(a) Short term liabilities/
Current liabilities
Cash credit - - - -
Accounts Payable 160000 176000 179200 184000
Interest Payable 130710.09 239241.55 322282.18 376025.14
Taxes Payable - - - -
Outstanding expenses 1868000 2054800 2092160 2148200
Total Short term liabilities 2158710.09 2470041.55 2593642.18 2708225.1
4
(b) Long term liabilities
Bank loan payable 148508.92 319196.47 515374.85 740850.90
Mortgage payable - - - -
(-) Current portion of - - - -
long term liabilities
Total Long term liabilities 148508.92 319196.47 515374.85 740850.90
Total liabilities 2307219.01 2789238.02 310901.03 3449076.0
4
Owners Equity      
Initial capital 5000000 5086377.48  4781350.97  4341039.7
42

1 
Retained Earnings      
Page

Profit for the year (963035) (960183)  (843649)  (546467) 

Total Owners Equity 4021780.99 4126194.48  3937701.97  3794572.7
1 
Total Liabilities & Equity 6329000  691532.5 7046719  7243648.7
5 

10. Cash Flow Statement

Projected Cash Flow Year 1 Year 2 Year 3 Year 4 Year 5
[Year]
OPENING BALANCE 4623021 342584 982753
1
Cash inflows    
Sales 3960000 443520 510048    
0 0
Equity
Loan
Asset sales    
Debtor receipts    
Other income    
Total Cash inflows 8583071 786104 608323
1 3
     
Cash outflows    
Equity 100000 100000
Marketing Expenses
Capital Expenses 1365000 143328 150491
0 2
Cost of raw materials 1398600 146853 154195
0 6
Wages 981750 103083 108237
7 9
Factory Overhead
Expenses
(Utility, repair&
maintenance, rent)
Start-up cost
Office Equipment
Salary 20200 20402 20606
Administrative
43

expenses
Page

Bank fees & charges 239242 322282 376025

Interest paid 558438 837657 111687
6
Lease/loan payments
Income Tax 594000 166528 765072
0
Others (Specify) 5157230 687826 650782
8 6
 Total Cash outflows
  3425841 982773 (42459
3)
Cash balance

Ownership

For our company we choose Partnership as our business form. There are three people share
ownership of this business. The partners of COCO-WA have a legal agreement that sets forth
how decisions will be made, profits will be shared, disputes will be resolved, how future
partners will be admitted to the partnership, how partners can be bought out, and what steps
will be taken to dissolve the partnership when needed. Yes, it's hard to think about a breakup
when the business is just getting started, but many partnerships split up at crisis times, and
unless there is a defined process, there will be even greater problems. We will patent our
product and go for licensing in future to avoid fierce competition.

Critical Risk and Problems

New firm: It is obvious that any new firm that starts its new business has a disadvantage for
being new to business. As our Coconut water beverage is a new business, it has to go through
a lot of experiments, hard times, obstacles, difficulties and so forth to become an established
44

one as a well known drink.

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Resource management: Considering the quality of coconut we try to pick it up as much

good as possible. But in our climate circumstance, natural disaster occurs any time. So it is a
very big issue to create problem to produce our product in just time. Moreover transportation
is another issue, because our factory location is far away from Dhaka. If in any cases, our
product will not be reached in just time, then we cannot fulfill our customers desire wants.
Highly experienced competitors: As mentioned before that not much company provide this
kind of healthy drink but that does not mean that there will not be. There are many renowned
soft drink company, they have been in the business for decades. They provide soft drink;
healthy drink and energy drink as well captured the market with very low price and good
will. They have the experience and know how to deal with the changes. So they might turn
out to be a threat for us.

Political instability: The current situation in our country is not so well and our political
infrastructures become enraged and threats of terrorism have resulted in our new business
becoming more insecure. Because of political instability we can’t communicate with our
supportive buyers, customers and so we will faces little bit losses for it.

Summery and Conclusion

Tender coconut water is serving as an excellent health drink for a longer and healthy life.
These contain l-Arginine, which is acknowledged as a heart protector and helps in smooth
operation of a human heart. We truly are dedicated toward manufacturing the COCO-WA
with nutritional benefits, delicious, refreshing drink, just as Mother Nature intended. We want
to share the goodness and deliver a product straight from the coconut to our customer.

Here at COCO-WA Coconut water, we are Bangladesh’s first 100% Pure Organic Coconut
water and as a result we promise to deliver coconut water straight from the coconut to
consumer, no preservatives, no colorings, no additives, no tricks, just 100 percent Pure
45

Organic Coconut Water. We will deliver on this promise through the use of our packaging.
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Coconut water is hyper sensitive to light; packing our coconut water is the best way to pack
coconut water, as the coconut water still thinks it's in a coconut! COCO-WA coconut Water
with its certified organic production facility will give consumer the most nutritious best
tasting coconut water on the market.
 Appendix

Production Cost

Total Production Cost (V. Operation Plan- (9)

Unit Cost of Product =
Total No. of Units produced (IV. Marketing Plan (6)

Ratios related to Income Statement

Ratio Ref. Result

Return on Investment or = Net Profit (0.199207)
ROI % / X 100
Total Investment (VII. Financial Plan- 4)
-963035 /4834735

Gross Profit ratio/ = Gross Profit 0.22916

Margin /
Net Sales
825000/3600000

Operating Profit Ratio = Earnings before interest and taxes (EBIT) (0.23120)
/ Net Sales
-832325/3600000

Net Profit Ratio/ Margin = Earnings after taxes (EAT) (0.26750)

/Net Sales
-963035/3600000

Interest Coverage Ratio = Earnings before interest & taxes (6.36772)

/
Interest
-832325/130710
46Page
 Reference
1. http://www.masterplans.com/business-plan-articles/coconut-water-
business-plan
2. http://www.coconutresearchcenter.org/Good%20Practice%20for
%20Coconut%20Water.pdf
3. Vlcc.wellness.com
4. www.refinery29.com › Beauty › Wellness
5. en.wikipedia.org/wiki/Coconut_water
6. Gold GYM
7. Persona Health care
47
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