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BUSINESS PROPOSAL

FOR INSTANT COFFEE


BUSINESS
What is instant coffee?
Roasted coffee beans are ground to create coffee powder, often known
as instant coffee. In comparison to brewed coffee, it has less caffeine
and more antioxidants. The main reason why people like instant
coffee is that it is simple to make.

What is instant coffee production?


The steps used to produce completed potable coffee are described by
an instant coffee producing company. Coffee packaging, marketing,
and distribution are also included.

Facts and benefits of instant coffee


a) Standard instant coffee only has seven calories per serving,
along with trace levels of potassium, magnesium, and niacin
(vitamin B3)
b) Regular coffee is more expensive than instant coffee.
c) It has less caffeine.
d) Boosting metabolism with instant coffee
e) It improves mental performance.
f) lowers the likelihood of developing neurodegenerative disease
g) Instant coffee benefits liver health as well.
h) It enhances mental well-being.
i) Coffee increases lifespan
j) It lessens the risk of diabetes
Instant coffee market summary
One of the most extensively used products in the world is coffee
powder, sometimes referred to as instant coffee. Roasted coffee beans,
which are the seeds of coffee plants grown in more than 70 countries
worldwide, are used to make coffee. For many nations, exporting
coffee is a major industry. Although it is widely known that
Americans adore coffee, statistics indicate that Australians consume
the most instant coffee globally. The biggest percentage in any area is
instant coffee, which accounts for 75% of the coffee drank in
Australia and New Zealand. Together, Eastern and Western Europe
consume 40% of the world's instant coffee. In Eastern Europe, instant
coffee makes up more than 50% of all brewed coffee; in Western
Europe, it makes up more than 25%.

The market for instant coffee was valued at $11.5 billion globally in
2019, $52 billion globally in 2020, and is expected to increase at a
CAGR (Compound Annual Growth Rate) of 6% between 2020 and
2025. The biggest producer of coffee as of 2020 is Brazil, followed by
Vietnam. Europe, Asia, the United States, and other North American
nations make up the greatest portion of the instant coffee market in
terms of sales. One of the main causes of instant coffee's fast market
penetration around the world is the increase in urbanisation and
changing dietary habits. Furthermore, because it increases
metabolism, enhances brain function, and maintains the health of the
liver, instant coffee is becoming increasingly popular all over the
world, especially among those who are employed.
Executive summary
ATB ltd intends to be a private limited company and wants to
manufacture instant coffee
The coffee industry was chosen as a business because most people
consume it in the morning, and there are still lots of specialised parts
of the coffee business for entrepreneurs to explore. Pick a buzzword:
locally sourced, organic, farm-fresh, delivery, craft.
To open the company the main name and brand of the company will
be known as ATB
The company will be providing instant coffee to customers at a very
reasonable price with high quality and ensures a good amount of
profit. Some of the product examples will be:
a)Instant coffee black powder
b) 3 in 1 instant coffee
They will be package in a travel sachet and plastic bottles
Added value
Based on some beneficial government policies, the company will
provide unique and excellent services and high quality products
promoting local economy and traditional African culture in particular
Tanzania culture, reducing local employment pressure by providing
equal employment opportunities to both young Girls and Boys,
enhancing health so as to prolong life, cure illnesses, and improve
physical functions, and finally making people learn from the company
which can lead to the expansion of the coffee industry

Mission statement
In order to enhance demand and gain customers' trust to do more
business with them in the future, the company plans to sell instant
coffee with the greatest quality possible.

Highlight
The company intends to be in the coffee industry. It will source
high-quality instant coffee ensuring that customers are given a price
that permits them to buy in a huge quantity and we will ensure that
the outstanding quality of the product is given to the customers We
then sell it to companies/wholesalers through marketing
Keys to success
1. Maintain customer relationships by delivering high-quality
products and services.

2. Maintain the development of a global consumer base.

3. Creating and becoming a well-known brand internationally.

4. Attending a coffee expo trade show in another country to


promote the company's name and acquire greater demand in
the international market.
Summary of Business
The company will acquire coffee from coffee board auctions and
transform the coffee into instant coffee powder and sell it to locals
with significant coffee consumption, while offering clients a
reasonable price for high-quality instant coffee. Our target consumers
for this product are Hotels, banks,schools, restaurants, cafés, airlines,
supermarkets, safari lodges, and wholesalers. Our company will
provide consumers with honest attention and relaxed delight in order
for them to enjoy first-rate services in our goods.

Location
The warehouse will be located in the city centre on Libya Street, P.O
Box 3239, where the instant coffee will be manufactured and secured

Financing

Ali BANDALI, the Founder, will seek investors who can invest in the
entire company and will provide them with a fixed proportion of
equity in the company so that the investors may enjoy their dividends
Requirements Amount
Goods 670,000
Machine 13,000,000
Rent 700,000
Electricity 100,000
Transportation 100,000
Water 180,000

TOTAL START UP EXPENSES

The above information of our financial budget indicates that the


business will be conducted purely on a professional accounting basis
and making sure that the Investors get their return of investments and
profits in a reasonable period of time
Management
The coffee industry takes intelligence since it is highly complicated,
thus the management is the foundation of the business, and it is the
one that forecasts success or failure. As a result, management takes
this into serious consideration in order to develop the business stage
and construct a name brand company. The management is conscious
that creating a name brand demands long-term investment, thus
suitable and professional management procedures, as well as a
Magnificent Management strategy, will be implemented. To ensure
quality, service speed, and high standard, management will need to
achieve unified standard, size, and procedure so that the company
may boost efficiency and decrease cost.

Layout
The company intends to have a very professional way of doing its
operations in an ethical manner and making sure that the customers
are satisfied with the product and services of the following company
there will be quality check for the coffee product and the coffee will
be placed in a condition that’s best for the coffee as to there will be no
future complain by the customers and the quality will be preserved in
the best way as possible

Operations
The operations of the company will be from 9 in the morning to 5 in
the evening
Conclusion
The argument for conducting market research indicated that
identifying a competitive edge over other service providers in the
same company determines the pricing and quality of a product.

Recommendation
The management conducted feasibility study and deployed SWOT
analysis, then came up with the following:

Strength Weakness Opportunity Threat


Highly Low Borden market Price volatility
motivated consumption of research in the market
coffee
High quality Strong Growing Political and
products competitors customer economical
loyalty threats
Customer Broad Reasonable Market demand
centric strategy competition price for the for the product
product
Positive Limited market Increase Production
attitude to the share quality of the decline
brand product

The Founder of ATB Exports LTD would urge investors to invest in


the company since it would be very successful, with a short period of
return on investment.

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