BUSINESS PLAN

EXECUTIVE SUMMARY
Industrias GELMID SRL, is a company whose business activity is the production and
marketing of agro-industrial products, currently developing the Project “Production and
marketing of Fruit Nectar”, which is reflected in this Business Plan.
The project aims to promote the introduction of the Fruit Nectar Product “Apu Frut” in
the local market of Abancay and generate the necessary conditions for its development
and positioning in it.
Likewise, in the local market of Abancay, a potential market of 42,945 people is
observed, and an unsatisfied demand of 49.8% of it, which represents for GELMID
Industries, an attractive market with many potential to generate benefits.
Taking these considerations into account, GELMID Industries introduces the product
“Apu Frut” into the market, consisting of a natural fruit nectar, whose slogan is “The
refreshing taste of natural”, with a content of 200 ml., in a container of talk, in mango
and apple flavors, labeled with a color label.
For the execution of this project, an investment of S/ 1,800.00 will be required, from
which it is expected to obtain: A Net Present Value of S/ 1,127.00, an internal Rate of
Return of 29%, a Cost Benefit Ratio of 1.92, and an investment recovery period of 3.68
months.

I. GENERAL INFORMATION:
1.1. INTRODUCTION
The Company's business activity is the production and marketing of
agro-industrial products.
1.2. PROJECT'S NAME
“Production and marketing of Fruit Nectar”
1.3. COMPANY NAME
“GELMID Industries” SRL
1.4. LEGAL FORM
Limited Liability Company

1.5. LOCATION OF THE COMPANY

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 The Company is located in the Province of Abancay, Department of
Apurímac. Having as its area of influence the districts of Tamburco and
Abancay, where the Production center and the Marketing center are
located respectively.

1.5.1. PRODUCTION CENTER

Av. Gracilazo S/N – Tamburco (University City)

1.5.2. MARKETING CENTER

Av. Marshal Gamarra No. 431

1.6. PROJECT ADVISOR:
Lic. Wilber Jimenez Mendoza
1.7. CONTACT INFORMATION
Telephones: 323839
504618
Cell phones: 970-6118
962-0912

1.8. PARTNERS IDENTIFICATION

The company is made up of 4 UNAMBA student partners studying
Business Administration, who have theoretical and technical experience
in the business activity to be developed.
The identifying data of each and every one of the partners who directly
participate in the creation and Operation of the microenterprise are the
following:

1.8.1. DATA
1.8.1.1. PARTNER #1
a) Names and surnames:
b) Professional Category: Student of the VII semester of the CP
of Business Administration.
c) ID: 44068767

1.8.1.2. PARTNER #2

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 a) Names and surnames: ç
b) Professional Category: Student of the VII semester of the CP
of Business Administration.
c) ID: 41542803

1.8.1.3. PARTNER #3
a) Names and surnames:
b) Professional Category: Student of the VII semester of the CP
of Business Administration.
c) ID: 44056567

1.8.1.4. PARTNER #4
a) Names and surnames:
b) Professional Category: Student of the VII semester of the CP
of Business Administration.
c) ID: 43307853

II. PROJECT JUSTIFICATION:

The Dept. Apurimac has enormous economic potential expressed mainly in the
natural resources it has, such as agricultural and livestock resources; which makes
Apurímac a Region of wealth and with a great capacity and potential to
industrialize said resources, adding value through agroindustrial activity.

Therefore, it is necessary and urgent to carry out the aforementioned

industrialization through agroindustrial activity, which will make it possible to
boost the regional economy, generating wealth and jobs, and at the same time
promote sustainable development.

In conclusion, for the reasons mentioned above, the development of Pre-

Professional Practices I (PPP-I) was chosen, the alternative of “Production and
Marketing of Fruit Nectar and other agro-industrial products”, which offers
attractive and promising opportunities in the current context of a growing national
economy, globalization and the opening of international markets (NAFTA, the
Trans-Oceanic Highway) and mega trends on consumer preferences towards
natural products.

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III. MISSION AND VISION OF THE PROJECT
3.1. MISSION:
We are a young and progressive Abanquina company that promotes the
economic and business development of the region, generating
employment and competitiveness, from the production and marketing of
fruit nectar, providing our consumers with nutritional advantages in their
health.
3.2. VISION
Leading company in the fruit nectar market in the Region, which offers a
differentiated and competitive high-quality product positioned in the
regional markets in the south of the country.

IV. PROJECT OBJECTIVES

4.1. GENERAL OBJECTIVE.

Promote the introduction of the fruit nectar product from GELMID

Industries, in the local market of Abancay, and generate the necessary
conditions for its development and positioning, through the design and
application of an effective Marketing Plan.

4.2. SPECIFIC OBJECTIVES

 Design and execute a Launch Plan and introduction of Fruit

Nectar from Industrias Gelmid in the local market of Abancay.

 Create a product philosophy that supports the need to consume

natural products, produced by a Company in the Region.

 Promote a culture of customer service that supports the

introduction and maintenance of “APU FRUT” fruit nectar in the
market.

 Design and produce a differentiated, highly competitive product

that provides consumers with added value compared to the
competition in the aspects of: flavor, preparation and natural
composition.

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  Establish an efficient distribution system that covers market
demand.

 Design an advertising policy that communicates the competitive

advantages of “APU FRUT” fruit nectar, which allows recall and
generates a purchasing impulse in the consumer.

 Design and execute strategies and programs aimed at the

development and consolidation of the product in the market.
4.3. GOALS

a) For the first month of operationalization of the project corresponding

to the month of December 2006, the following goals are achieved:

o Produce 1000 Units. of fruit nectar product with a

content of 200 ml in mango and apple flavors in
quantities of 750 and 250 Units. respectively. Plus an
additional 20% (200 units) in the proportion of 150
units of mango and 50 of apple.

o Sales, sell 100% of the units produced on the market.

b) For the period corresponding to the first quarter of the second year of
the project, months of January, February and March 2007, increase
production and sales of the product to 2,000 Units, in the apple and
mango flavors the quantities of 1000 and 1000 respectively. Plus an
additional 20% (400 units) in the proportion of 250 mango and 150
apple.

c) For the period corresponding to the second, third and fourth quarters
of the second year, maintain the production and sales of the project
above 4,000 Units. of product in the same flavors Plus an additional
40% (800 units).
v. PRODUCT
The Company “GELMID” SRL will introduce a new product to the market,
consisting of fruit nectar, made from natural fruits selected from the
different species of our region.
5.1. PRODUCT DEFINITION
5.1.1. PRODUCT DESCRIPTION

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 Fruit nectar is a product made up of finely divided and sieved fruit juice
and pulp, added with water and sugar, which requires organic acid and is
preserved by heat treatment.
Fruit nectar is consumed as a nutritious restorative and as a refreshing
drink.
5.1.2. PRODUCT CHARACTERISTICS
a) TYPE: Fruit product made from fruit juice and pulp, water, sugar
and organic acids.
b) Brand Name: “APU FRUT”
c) Slogan: “The Refreshing Taste of Natural”
d) Presentation: Plastic container, with a content of 200 ml, with screw
cap and color printed label
e) Labeling: coated (plasticized) paper labels printed in color, which
include: the brand, slogan, brand image, company name, company
data, nutritional information, ingredients and expiration date.
f) Useful life: 4 months (120 days)
g) Flavor: Mango and apple.
h) Consistency: Thick

5.2. PRODUCT POSITIONING

Gelmid SRL, through its fruit nectar product “APU FRUT”, will
implement distinctive benefits and differentiated elements to create a
competitive advantage and position itself in the market.

5.2.1. DISTINCTIVE BENEFITS:

to. Natural refreshing: The selected fruits have this natural
characteristic and the juice contains a high level of the taste of
each fruit.
b. Natural energy: The juices contain all the flavor of tropical
fruits, as well as their high value, considered as natural
energizers.

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 c. Flavors: The selected fruits have a pleasant, refreshing flavor.
The variety of flavors provides a delicious drink with a taste of
fresh fruits from the region.
5.2.2. DIFFERENTIATING ELEMENTS:
“APU FRUT” fruit nectar has the following differentiating
elements:
 Natural product
 High nutritional value and pleasant natural flavor
 Abanquino product
 Moderate price
5.2.3. COMPETITIVE ADVANTAGE
The competitive advantage of “APU FRUT” fruit nectar will be
focused on the “High differentiation and Low Price” strategy,
therefore becoming a powerful value proposition for the
customer.
This strategy allows the fruit nectar “APU FRUT” to have an
important competitive advantage that allows it to have a great
possibility and potential to position itself in the local fruit nectar
market.

5.3. FRUIT NECTAR PRODUCTION PROCESS

The production process is observed in a more didactic way in Diagram
No. 01.
5.3.1. NECTAR PRODUCTION TECHNOLOGY.
To prepare juices and nectars, it is first necessary to obtain the
pulp or juice of the fruits.

5.3.1.1. OBTAINING THE PULP

There are many fruits that, due to the amount of solids they
contain, after crushing and refining, a pulp will be obtained. For
example: peach, pineapple, banana, papaya, among others. If you
want to get to the juice, you have to filter them either with a press

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 or any other equipment that allows us to separate the insoluble
solids (thick mass) from the soluble solids and water.

a) SELECTION AND CLASSIFICATION OF RAW

MATERIALS.
Healthy and fully ripe fruits should be chosen, separating all those
that show signs of decomposition or deterioration.
It is important to classify the raw material, this means grouping
them taking into account certain characteristics, viz.
State of maturity, fruits that have completed their state of maturity
must be processed; therefore, they are classified as green, yellow
and ripe.
The fruits that have completed their state of maturity have good
flavor and aroma, an ideal state to process them in the form of
pulps, juices and nectars.

b) WASHED
It is carried out with the purpose of eliminating the greatest number
of microorganisms that accompany the product as well as
impurities that may be attached to them such as dust, dirt and
remains of insecticides.
Washing is done by soaking the fruit in a tub and after a reasonable
amount of time, which can be about 5 minutes, rubbing it to
facilitate the removal of impurities (soil and others). When it is
observed that this objective has been achieved, washing with
circulating water begins.
Additionally, you can disinfect using any permitted disinfectant
that exists on the market. Among them we can mention 0.025%
Sodium Hypochlorite, lauricuat, Dodigen, Tego 51 and Bacoxin
among others.
c) OBTAINING THE PULP FROM PULPOSOUS FRUITS.
1. Pre-cooking
Many fruits need to be pre-cooked (boiling temperature).
Cooking times are variable and depend on the nature of the

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 fruit. For example: mango 10 to 15 minutes and apples 5 to
10 minutes.
The objectives of pre-cooking are:
 Produce the softening of fruit to facilitate the pulping
operation.
 Fix and accentuate color.
 Contribute with a small sterilization to reduce the
microbial load.
 Eliminate intercellular gases.
With precooking, blanching or enzyme inactivation is also
achieved. Enzymes are natural chemical components of the
fruit, when exposed to oxygen in the air, they accelerate the
oxidation of the pulp with color changes (dark brown).

2. Cut, Peeled, Crushed or Pulped

The objective of this operation is to extract or transform the
pulp of the fruit into a paste. The methods used will depend
on the type of fruit, some will first need peeling to separate
the peel, thus avoiding its incorporation as is the typical case
of papaya and prickly pear. Others can be crushed and then
passed through sieves to separate the shell and seeds.
The truth is that to obtain the pulps and with it Nectars and
Juices, the peel must be separated and along with it the largest
amount of insoluble solids (fruits, seeds, foreign spots).

3. Sifting
This operation is carried out on common sieves or meshes
conditioned for this purpose. You can even prepare a mesh or
circular sieve (like a tube) and run a plunger that rubs on the
mesh to push the pulp.

5.3.1.2. OBTAINING NECTAR FROM PULP.

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To make Nectar, you start with a pulp that is diluted with water,
mixed with sugar, the pH is regulated with citric acid and, if
necessary, a thickener and a chemical preservative are added.
a) STANDARDIZATION
The stage where nectar is formulated is called
standardization.
1. Pulp:Water Ratio
It will depend on the type or variety of fruit, some
hold up to five parts of water like passion fruit,
while others only hold one part like orange. It is
generally in the order of 2.5 to 3 parts of water per
part of fruit. The quality of the nectar is also due to
this.
This relationship will be determined through a
sensory evaluation where the nectar must have the
characteristic flavor and aroma of the fruit.
The water to be used must be treated. A good way
to work is to boil the water and cool it, this allows
us to partially separate the salts that precipitate and
lower the microbial load of the water.

2. Sugar regulation
The sweetened or sweetened is made with white
sugar; This must be of good quality and free of
impurities so as not to interfere with the flavor and
color and affect or lower the quality of the nectar.
Sugar content levels are also variable depending on
the fruit being worked with and the consumer's
habits. In our environment, a sugar content
between 12 to 16º Brix is accepted, that is, 12 to
16% sugar in the nectar.

3. pH regulation

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 The pH is regulated with citric acid. It will also
depend on each fruit. To know to what level it
should be regulated, as in all processes, two very
important conditions must be sought.
 Lower the pH as much as possible to
preserve the product more easily. We must
remember that the higher the acidity, the
microorganisms are limited without the
power of action and development.
 Lower the pH only to levels that do not
change the sensory part of the Nectar. This
is a good rule, the pH should not stray too
far from the original raw material.
However, it is generally below 4.0 for all
nectars.

4. Addition of Stabilizer
The stabilizer most used in nectars is Carboxy
Methyl Cellulose CMC. This is obtained at an
industrial level by carboxymethylation of cellulose
in the presence of sodium and methyl chloride.
The most important features of the CMC are:
 Constant chemical composition
 Due to its viscosity, it is used in small
quantities.
 Forms clear gels
 The gels are stable at a comparatively very
low pH range.
Generally the use of CMC varies between 0.07% to
1%. Depending on the fruit being worked (pectin,
gum and solid content)
The use of CMC and any other stabilizer allows, in
addition to providing an adequate consistency

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 (viscous), to avoid phase separation (solid-liquid).
The solids do not precipitate and remain trapped
and distributed homogeneously in the container.
5. Chemical Preservative
Sodium benzoate or Potassium sorbate can be used,
although a mixture of the two would be more
recommended. The total amount to be added
should be on average 0.03% of the weight of
Nectar. If you are going to add 0.015% of each
mixture.
This product should be added diluted in warm
water, just enough to dissolve it.

b) HOMOGENIZATION
Its objective is to incorporate all the inputs into the nectar
and also reduce the particle size, thereby giving better
presentation and stability to the product.
It is convenient for this activity to use a blender to achieve
this objective.

c) HEAT TREATMENT.
It is pasteurized, it consists of bringing the nectar to
boiling temperature. This ensures the inactivation of
pathogenic microorganisms and thus preserves the nectar.
Logically, this also requires a container that is isolated
from the medium and the appropriate process conditions.
To carry out the heat treatment, any pot or container can
be used. It is recommended that these tanks be as closed as
possible; in any case, they could be fitted with a lid, in
order to avoid losses due to evaporation and concentration
of the product.

d) PACKING

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 Before packaging juices or nectars, the containers must be
washed and sterilized. Washing containers can be done
with detergent and then with disinfectant, for example
0.025% Sodium Hypochlorite. Subsequently, they are
immersed in soft water at boiling temperature in a pot or
tank. They are aerated and are ready to proceed with
packaging.
The same applies to the lids, these can be made of plastic
or tin. In any case, care must be taken that they have the
Compoud on the inside that allows for airtightness when
closed.
To carry out the packaging and to facilitate this operation
without watering the nectar, jars that have an opening or
spout are required. These can be food grade plastic.
The containers must be filled completely, leaving no room
for the inclusion of foam. It must be carried out at a
minimum temperature of 85ºC to achieve the adequate
vacuum. This void (headspace) is formed by the effects of
the contraction of the product when it cools, which also
contributes to conservation.

e) COOLED
At this stage it is important to emphasize that if the
container supports thermal shock, it must be cooled
suddenly using a bath or jet of cold water; In this way, the
destruction of some microorganisms that would have
resisted the heat treatment must be ensured.
In our environment, the majority of glass containers used
for nectars are not manufactured to withstand thermal
shock, and at most they are given a light bath to eliminate
traces of product present on the outside due to the
packaging.
Then let them cool in the environment.

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f) CLEANING AND LABELING.
The containers are cleaned and labeled.
Labels must be clean and firmly attached to the container.
Labels will not be superimposed on existing ones, except
in those cases in which they complement existing
information. The label will contain the following
information:
 Product name in bold letters.
 Type, class and degree.
 Production area.
 Net content
 Indication of the origin of the product.
 Name or company name, address of the
manufacturer or distributor.
 Standard conformity mark (Brand Patent)
 Supplies used.
 Sanitary authorization.

g) STORAGE AND MARKETING

Nectars should be stored in clean, dry environments with
sufficient ventilation. It is important to store them for a
period of no less than 40 days to verify the status of the
product and then be marketed.

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 Diagram No. 01
PRODUCTION FLOW CHART

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 OBTAINING THE PULP
OBTAINING NECTAR FROM PULP PULP
SELECTION AND
SELECTION AND
CLASSIFICATION
CLASSIFICATION

WASHED
WASHED

OBTAINING THE PULP

OBTAINING THE PULP

STANDARDIZATION
STANDARDIZATION

HOMOGENIZATION
HOMOGENIZATION

HEAT TREATMENT.
HEAT TREATMENT.

PACKING
PACKING

COOLED
COOLED

CLEANING AND
CLEANING AND
LABELING.
LABELING.

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STORAGE AND
STORAGE AND
MARKETING
MARKETING
VI ANALYSIS OF THE MARKET MACRO ENVIRONMENT:
6.1. ECONOMIC ENVIRONMENT
6.1.1. ECONOMIC SITUATION OF PERU.
In 2006, the Peruvian economy expanded by 5% compared to the
previous year, while inflation remained within the range established by
the monetary authority and at the end of the year it was around 2%. This
allowed a moderately expansive monetary policy and decreasing interest
rates, with favorable consequences for economic activity.
Mainly thanks to mining exports, the highest trade surplus was recorded
since 1990 and the balance of payments current account deficit remained
around 2% of GDP. A stable macroeconomic situation is perceived with
prospects for greater growth in the export sector.

On the other hand, with respect to employment, in Peru, the MYPE

sector constitutes 99% of the industrial sector, absorbs more than 75% of
the economically active population (EAP) and generates around 45% of
the Gross Domestic Product ( GDP) therefore, MYPEs have important
and significant economic connotations in the national economy, due to
the great capacity they have to generate wealth and employment.

6.1.2. ECONOMIC SITUATION OF APURIMAC.

In January 2006, the gross value of agricultural production (VBP) was
2.1 percent lower than in January 2005. The VBP of the agricultural
subsector increased by 33.2 percent, unlike the livestock subsector,
which decreased by 30.2 percent. Fish extraction increased 2.0 percent
compared to January 2005, highlighting the greater catch of trout. The
generation of electrical energy decreased 2.0 percent compared to
January 2005. Likewise, energy sales increased by 29.1 percent
compared to January 2005. In January, the Consumer Price Index in the
city of Abancay increased 0.26 percent, resulting in a variation of 0.76
percent for the last twelve months.
From December 2005 to January 2006, the sales exchange rate of the
banking system showed a decrease of 0.9 percent, while in the last twelve
months it rose 3.8 percent.

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SUNAT collection in the Apurímac Region increased 30.0 percent
compared to what was collected in January 2005. This was mainly
explained by the higher yield of Income Tax (35.0 percent).
Regional Government spending grew 13.0 percent compared to January
2005. The increase was associated with Current Expenditure (11.7
percent) and Capital Expenditure (129.0 percent). At the end of January
2006, the balance of deposits in the Financial System was 1.0 percent
higher than in December 2005, influenced by the increase in deposits
from the Banco de Crédito (0.9 percent).
At the end of January 2006, the balance of loans in the Financial System
was 2.1 percent lower than in December 2005, due to the lower
intermediation of the Cusco Municipal Fund (-3.0 percent).

6.1.3. POLITICAL ENVIRONMENT

The art. 4 of the “Law for the Promotion and Formalization of Micro and
Small Businesses” - Law No. 28015, establishes as state policy the
following: “the state promotes a favorable environment for the creation,
formalization, development and competitiveness of MYPEs and the
support to new ventures, through national, local and regional
governments, and establishes a legal framework and encourages private
investment, generating or promoting an offer of business services aimed
at improving the levels of organization, administration, modernization
and productive articulation and commercial of MYPEs, establishing
policies that allow business organization and association for economic
growth with sustainable employment.”

Within the context of this law, the following policies are observed that
favor the creation, formalization, development and competitiveness of
MYPEs:

 The preference and priority of MYPES for the contracting and

acquisition of goods and services from the State, separating no less
than 40% of their purchases to be attended to by MYPEs.

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 o Simplification of the various registration, supervision,
inspection and subsequent verification procedures; that
promotes the formalization of MYPE.

 The promotion by the State of the access of MYPEs to the financial

market and the capital market.

 The promotion by the Ministry of Foreign Trade and Tourism of

intensive programs for the opening and consolidation and
diversification of international markets for MYPEs.

 The reduction of registration and notarial costs, before SUNARP and

the Code of the College of Notaries, an act promoted by
CONDEMYPE.

 The MYPE is exempt from 70% of the payment rights provided for in
the TUPA of the Ministry of Labor and Employment Promotion.

On the other hand, in the aspect of tax policies, the national tax system is
based on the “Framework Law of the National Tax System” (D. Leg. 771-
12/31/1993), which establishes that the taxes are the following:

a) For the Central Government

 Income tax

 General sales tax.

 Excise tax.

 Customs duties

 Fees for the provision of public services.

 The single simplified regime.

 The temporary tax on net assets

 Solidarity tax in favor of helpless children.

 Tax on casino games, slot machines.

b) For Local Governments: Those established according to the Municipal

Taxation Law, such as taxes, operating licenses, etc.

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 c) For other purposes:

 Social Security Contributions (EsSalud, ONP)

 Contribution to the National Industrial Technical Training

Service (SENATI)

 Contribution to the National Training Service for the

Construction Industry (SENCICO)

Likewise, the DS No. 179-2004-EF. TUO of Income Tax and DS No. 122-94-
EF, Regulation of 12/08/2004; establishes three tax regimes for third category
income tax:

 General Regime

 Special Income Regime (RER)

 Simplified Single Regime (RUS)

The last of them being the Regimes in which MYPEs are frequently welcomed.

6.1.4. DEMOGRAPHIC ENVIRONMENT

According to the final results of the

The population of the town of Abancay in the last inter-census period,

that is, between 1993 and 2005, experienced an average annual growth
rate of 3.5%, which shows the increasing trend in the last 30 years.

6.1.4.1. COMPOSITION OF THE POPULATION BY AGE

AND SEX

The age structure of the population is predominantly young; in

2005, 33% corresponded to the population under 15 years of age.
The active-age population, that is, between 15 and 64 years old, is
62% of the total population and people aged 65 and over represent
5%.

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 On the other hand, currently in the town of Abancay district there
are as many men as women. The femininity index indicates that
for every 100 men there are 99.5 women. By age groups, it is
evident that at younger ages there are more men than women;
However, at older ages, the opposite occurs due to higher male
mortality.

6.1.5. NATURAL ENVIRONMENT

The department of Apurímac has enormous economic potential expressed

mainly in its natural resources, such as agriculture and livestock, which
make Apurímac a region of wealth.

With respect to agricultural resources, the department of Apurímac has a

wide variety of natural products, grains, stews, tubers, fruits, vegetables,
legumes, and medicinal plants and herbs; many of which are native,
exotic and unique to Peru, an aspect that makes them extremely
competitive.
The gross value of agricultural production (VBP) for 2006 increased by
33.2 percent compared to January 2005, mainly due to the greater
production of corn (623.0 percent). (See Table No. 01 and Table No. 02)

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 Table No. 01

Table No. 02

Now, with respect to fruit production, the department of Apurímac has

potential in the production of various fruits. The III National Agricultural
Census of 1994 shows that the following fruits are produced in
Apurímac: strawberries, papallos, cucumbers, bananas, watermelons,
tumbos, prickly pears, custard apples, sour lemons, mangoes, apple trees,
passion fruit, orange trees, avocado trees, pear trees, plums, limes,
quinces and pacaes. Of these, the main permanent crops are avocado,
peach, apple and mango. (See Table No. 03)

Table 03

MAIN PERMANENT CROPS IN THE DEPARTMENT. FROM

APURÍMAC (IN HAS)

AVOCADO PEACH APPLE MANGO

PROVINCES
TREE
Abancay 3.88 7.38 2.20 0.64

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 Andahuaylas 4.59 4.79 0.88 2.86
Antabamba 0.25 0.25 - -
Aymaraes 0.13 0.26 1.80 -
Cotabambas 3.00 0.33 - -
Chincheros 10.65 1.75 3.12 -
Grau 0.04 0.96 0.02 -
TOTAL 22.54 15.72 8.02 3.50
Source: III National Agricultural Census – INEI – Ministry of Agriculture –
Department of Apurímac.

VII MARKET
7.1. NATIONAL BEVERAGE PRODUCTION
A substitute product for the juice and nectar market is the beverage market.
According to INEI, the national beverage market has been increasing in recent
years, increasing 15% from 1994 to 2001. To observe the corresponding
summary table (see Chart No. 01).
In 2003, the production of soft drinks has remained stable. In Chart No. 02 we
can see the seasonality of this product, greater production during the summer and
spring months, decreasing by up to 20% in the winter and autumn months.
Graph No. 01
NATIONAL BEVERAGE PRODUCTION 1994-2001

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 Graph No. 02
NATIONAL BEVERAGE PRODUCTION 2003

7.2. NECTAR MARKET (NATIONAL LEVEL)

According to Business Media1 In 2000, the Juice and Nectar market in Peru
reached 22 million liters annually, and forecasts a growth of 15% to 20% in
the medium term.

7.3. MARKET TRENDS THAT ACTIVE ON THE PRODUCT

There is a change in lifestyle in Latin America that presents potential for
beverage producers. On the one hand, time pressure in the region, especially
in large metropolitan areas, is becoming similar to that of other countries
such as the United States, with this comes shorter meal times and the need
for practical products to purchase. carry, consume and discard.

VIII MARKET STUDY

1
Medio Empresarial Magazine. Ed. 2003

P. 024
 8.1. CONSUMER MARKET
8.1.1. TOTAL MARKET
The “APU FRUT” fruit nectar consumer market is made up of the town
of Abancay, which has a total population of 54,180 inhabitants. 2 .; which
represents the total market for fruit nectar “APU FRUT”.

8.1.2. POTENTIAL MARKET

According to the research carried out in the study market (city of
Abancay), it was found that the public consumer of fruit nectar is made
up of the segment of the population between 5 and 49 years old, which
constitutes 79.264%.3 of the total population. Therefore, this segment
represents the potential market for “APU FRUT” fruit nectar, which
amounts to the number of 42,945 people.4 , as shown below:
Total population of Abancay : 54,180 inhabitants
Population in the range (5-49 years) : 79.264 %

POTENTIAL MARKET = 54 180 * 79.264%

POTENTIAL MARKET = 42,945 people

8.1.3. AVAILABLE MARKET

According to the market research carried out, it was determined
that currently 77.78% of the potential market consumes fruit
nectar.5 , which represents for fruit nectar “APU FRUT”, the
available market to which it will launch its product, this market is
made up of 34,356 people , as shown below:
Potential market : 42 945
Consumer population : 77.78%

AVAILABLE MARKET = 42 945*77.78%

AVAILABLE MARKET = 33 403 people
8.2. COMPETITIVE MARKET

2
See Annex No. 01
3
See Annex No. 02
4
See Annex No. 03
5
See Annex No. 04

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8.2.1. COMPETITION IDENTIFICATION
Taking into account the levels of substitution that our products would
have, the range of competitors is as follows:
• Brand: Competitors in terms of brand are: Watts, Laive, Frugo's,
Tampico, Selva, Fresh Frugos.
• Industry: the competition according to the products are: Coca Cola,
Inca Kola, Pepsi Cola, Kola Real, Don Isaac Kola, Socosani, San Mateo,
San Luis, Cielo, Kanú, Royal, Tang.
• Form: are companies that provide a product that meets the same food
needs: Tea, coffee, Gatorate energy drinks, Electrolight.
• Generic: compete with companies that offer the same consumer value
for thirst satisfaction. The juice competes with ice cream, raspadillas, etc.
Regarding the offer of natural juice and soft drink products.
8.2.2. COMPETITOR ANALYSIS
In the Peruvian market we can carry out the analysis of the following
points:

a) BRAND PENETRATION
At the national level, the leading brand with the greatest market
penetration is Frugo's, having a high participation (63%), followed
distantly by Gloria (10%), Tampico (6%), Laive (3%) and Watts (2%). ,
do not specify (12%), and others (4%), This allows us to determine our
main competitors and focus on their strategies, prices and products. (See
Chart No. 03)
Graph No. 03
MOST CONSUMED JUICE BRAND
(At the national level)

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On the other hand, in the Abancay Local Market, the results for the most
consumed brand of nectar are as follows. See Chart No. 04

P. 027
 Graph No. 04
MOST CONSUMED JUICE BRAND
(Local market)

13. ¿Qué marca de néctar es de su preferencia?

49.58%
50%

45%

40%

35%

30%

25%
16.81%
20% 15.13%
15%
8.40%
10% 3.36%
3.36%
2.52%
5% 0.84%

0%
Frugos Gloria Walon Saolé Watts Sprint Fruticyd Otros
Andino

b) TECHNICAL CHARACTERISTICS OF THE MAIN JUICES

The main technical characteristics of the competition as shown below in
Table No. 04.

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 Table No. 04
TECHNICAL CHARACTERISTICS OF THE MAIN JUICES.

P. 029
c) STRENGTHS, WEAKNESSES AND STRATEGIES OF THE
COMPETITION.
The main weaknesses and strategies of the competition are those mentioned in
Table No. 05.
Table No. 05

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 STRENGTHS, WEAKNESSES AND STRATEGIES OF THE

COMPETITION
d) ANALYSIS OF COMPETITOR PRICES:

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To carry out the price analysis, prices could be distinguished according to
the type of packaging and its capacity, which is why the different data
from the main sales centers was collected. (See Table No. 06)
From these tables we can conclude that:
• Gloria has lower prices, and only has Tetrapack packaging.
• Those in glass containers are more expensive than Tetrapack.
• In Tetrapack packaging it is only found in standard 200ml and 1 liter
containers, while in plastic bottle packaging there is a greater variety of
container sizes.
• Disposable plastic bottle containers are cheaper.

Table No. 06
COMPETITION PRICE

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 8.2.3. ESTIMATED SUPPLY OF THE COMPETITION IN THE
LOCAL MARKET
According to the market research carried out, it is estimated that the
competition places and distributes 12,000 units on the market monthly. of
product. This information was obtained from interviews carried out with
the 3 wholesale and formal distributors in the city of Abancay, taking as
reference the products with measurement units of 200 ml and 250 ml. As
shown in Table No. 07.

Table No. 07
ESTIMATED SUPPLY OF THE COMPETITION IN THE LOCAL
MARKET6

Number of products
Distributor
distributed monthly

Coca Cola
6 000
Distributor

Salazar Stores 2 500

Gloria Distributor 3500

TOTAL 12 000
Source: Own elaboration, Industrias GELMID SRL

8.3. BALANCE OF SUPPLY AND DEMAND

In accordance with what was mentioned in the previous study of the consumer
market and the competing market, it is observed that there is a margin between
the supply and demand of fruit nectars.
Therefore, it is observed that currently market demand, as well as consumer
tastes and preferences, are not completely satisfied.
In conclusion, the unsatisfied market demand is shown in Table No. 08.

6
The analysis considers 200 ml and 250 ml products. of the brands Gloria, Watt's and Frugos.

P. 033
 Table No. 08
BALANCE OF SUPPLY AND DEMAND

Estimated Demand 33 403.

Estimated Offer (12 000)
Unsatisfied demand 21 403.
Source: Own elaboration, Industrias GELMID SRL
Therefore, unsatisfied demand constitutes 49.8% of the potential market.
The service forecast of GELMID SRL through its fruit nectar product “APU
FRUT” to meet the unsatisfied demand at the beginning (First month of the
project) is 2,000 Units.
Then the project coverage will be 8.90% . As shown below:

Service Forecast : 2 000.

Unsatisfied demand : 21 403.

PROJECT COVERAGE = 2 000/21 403

PROJECT COVERAGE = 9.34%

IX MARKET SEGMENTATION
Fruit nectar “APU FRUT” has as its target market the town of Abancay district,
which has a population of 54,180 inhabitants. However, the members of the
market in question have different needs, tastes, preferences, characteristics and
behaviors; Therefore, it is necessary to segment the market into homogeneous
groups of consumers that allow designing and executing appropriate marketing
offers for each group of consumers, and effectively addressing the needs, tastes
and preferences of consumers.
That is why the target market (Abancay town) was segmented at the Segment
Marketing level.7 , with the aim of isolating broad market segments and adapting
the offer to their needs.
In aforementioned segmentation, the “age variable” was essentially used to form
three important segments:

7
“Philip Kotler, Marketing Fundamentals, Chapter 7: Market Segmentation, selection and positioning.

P. 034
9.1. Segment “A” (Children)
Consisting of the population between 5 and 14 years old.
9.2. Segment “B” (Youth)
Consisting of the population between 15 and 24 years old.
9.3. Segment “C” (Adults)
Consisting of the population between 25 and 49 years old.

Likewise, it is necessary to indicate that in addition, in the aforementioned

segmentation, the variables of frequency of consumption, rate of consumption,
reason for consumption, level of education, willingness to purchase and
occupation were taken into consideration; as shown below:
 Segment “A” (Children)
- Frequency of consumption: Regular users
- Consumption rate: Small and medium consumers
- Reason for consumption: Nutritional supplement
- Education level: Primary and secondary
- Occupation: Students
- Willingness to purchase: Willing to purchase
 Segment “B” (Youth)
- Frequency of consumption: Regular and irregular users
- Consumption rate: Small consumers
- Reason for consumption: Natural refreshing
- Education level: Secondary and higher
- Occupation: Students and self-employed workers
- Purchasing disposition: Willing to purchase and indifferent to the
purchase.
 Segment “C” (Adults)
- Frequency of consumption: Regular and irregular users
- Consumption rate: Small and medium consumers
- Reason for consumption: Natural nutritional and refreshing
supplement.
- Education level: Complete secondary, higher, others.

P. 035
 - Occupation: Public and private employees, merchants,
professionals, independent workers and housewives.
- Purchase disposition: Willing to purchase and indifferent to the
purchase

x. SWOT ANALYSIS:
10.1. INTERNAL CONDITIONS:
10.1.1. STRENGTHS:
 Theoretical and technical experience in the business activity to be
developed.
 In-depth knowledge of the target market.
 Ability to design a product that satisfies the needs and
expectations of consumers.
 Technical knowledge about the fruit nectar production process.
 Possess a natural and differentiated product to offer to the market.
 Have the skill and technical capacity to design and apply
effective Marketing strategies.

10.1.2. WEAKNESSES:
 Lack of infrastructure and own machinery.
 Not having cutting-edge machinery and technology.
 Not having enough capital and machinery to carry out production
at scale.
 Be a new company in the market.
 Not having contractual systems with suppliers and retailers.

10.2. EXTERNAL CONDITIONS:

10.2.1. OPPORTUNITIES:
 Availability of natural resources (raw materials) of good quality
and abundance in the region.
 Important potential market.
 Existence of a significant number of intermediaries to distribute
the product in the market.

P. 036
  Existence of institutions that provide financial support to
MYPES.
 Existence of Government Policies that favor the development of
MYPES.
 National and regional economy in moderate growth.
 Presence of mega trends on consumer preferences towards natural
products.
 Opening of international markets.
10.2.2. THREATS:
 Shortage of our raw materials and products due to environmental
factors.
 Changes in consumer habits.
 Existence of solid and well-positioned competition in the market
that uses economy-of-scale production and has cutting-edge
technology.
 Emergence of new Competitors.
 Development of substitute products.
 Significant increases in the prices of inputs and materials.

XI MARKETING MIX STRATEGY (4 PS):

11.1. PRODUCT
The product that Industrias Gelmid introduces to the market, It consists
of a fruit nectar, called “APU FRUT”, whose slogan is “The refreshing
taste of natural”, with a content of 200 ml., in the flavors of mango and
apple, labeled with a color label.
Fruit nectar “APU FRUT” is classified as a consumer product since the
consumer acquires it for personal consumption to satisfy the need for
thirst and nutrition. In addition, it is subclassified as a convenience
product, since it is a frequently purchased product and requires minimal
purchasing effort.

11.2. PRICE

P. 037
 The price of “APU FRUT” fruit nectar is S/ 0.80 for each unit of product
with a 200 ml content.
To calculate the unit price of the product, the production of 1,200 Units
of 200 ml (240 liters) product was taken into consideration, in the
proportion of 600 Units (120 Lts) of mango and 600 Units (120 Lts) of
apple. The fixed costs are shown in the following table:

TABLE OF MONTHLY FIXED COSTS

DESCRIPTION AMOUNT COST COST
UNITARY TOTAL
Rental of machinery and
production equipment. 8 01 40.00 40.00
Rental of marketing premises. 9
01 100.00 100.00
TOTALS/. 140.00

The fixed costs mentioned were distributed according to the production

proportion of each product flavor, which were 600 units (120 liters) and
600 units (120 liters) of mango and apple respectively. The
aforementioned distribution was carried out in the following way:
 50% of the total fixed cost for the production of mango flavored
nectar, which represents the sum of S/. 70.00
 50% of the total fixed cost for the production of apple flavor
nectar, which represents the sum of S/. 70.00

In conclusion, the unit price of the fruit nectar product “APU FRUT” was
determined under the Cost Perspective ,10 as it's shown in the following:

11.2.1. UNIT PRICE OF THE PRODUCT

11.2.1.1. MANGO FLAVOR

8
Includes water and electricity
9
Includes water and electricity
10
Jaques lambin, Strategic Marketing, Cap. 13: Strategic pricing decisions.

P. 038
 VARIABLE COSTS TABLE
DESCRIPTION AMOUNT UNIT COST COST
MEASURE UNITARY TOTAL
MENT
Fruit 60.00 Kg. 0.80 48.00
Sugar 12.50 Kg. 2.20 27.50
acids - 1.00 1.00
Packaging 0.60 Millar 198.00 119.00
Tags 0.60 Millar 30.00 18.00
TOTALS/. 213.50

a) LIMIT PRICE

Limit Price = Unit Variable Cost

The unit variable cost is made up of fruit, sugar,

acids, packaging, labels and extra production, as
mentioned below:
 Fruit : 0.080
 Sugar : 0.046
 acids : 0.001
 Packaging or container : 0.198
 Tags : 0.030
Unit Variable Cost: 0.355

Limit Price = S/. 0.355

b) TECHNICAL PRICE

Technical Price = Unit Cost + (Fixed Cost/Units Produced)

P. 039
 Technical Price = 0.355+ (70/600)

Technical Price = S/. 0.472

c) TARGET PRICE

Target Price = Technical Price / (1-Desired Margin)

Target Price = 0.472 / (1 -0.41)

Target Price = S/. 0.80

11.2.1.2. APPLE FLAVOR

VARIABLE COSTS TABLE
UNIT COST COST
DESCRIPTION AMOUNT MEASURE UNITARY TOTAL
MENT S/. S/.
Fruit 60 Kg. 1.00 60.00
Sugar 12.50 Kg. 2.20 27.50
acids - 1.00 1.00
Packaging 0.60 Millar 198.00 119.00
Tags 0.60 Millar 30.00 18.00

TOTALS/. 225.50

a) LIMIT PRICE

Limit Price = Unit Variable Cost

The unit variable cost is made up of fruit, sugar,

acids, packaging, labels and extra production, as
mentioned below:
 Fruit : 0.10
 Sugar : 0.046
 acids : 0.001
 Packaging : 0.198

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  Tags : 0.003
Unit Variable Cost: 0.375

Limit Price = S/. 0.375

b) TECHNICAL PRICE

Technical Price = Unit Cost + (Fixed Cost/Units Produced)

Technical Price = 0.375+ (70/600)

Technical Price = S/. 0.492

c) TARGET PRICE

Target Price = Technical Price / (1-Desired Margin)

Target Price = 0.492 / (1 -0.38)

Target Price = S/. 0.80

P. 041
11.2.2. PRODUCT BALANCE POINT
a) MANGO FLAVOR

b ) APPLE FLAVOR

P. 042
P. 043
c) ACCUMULATED BALANCE POINT (MANGO AND APPLE)

P. 044
11.3. SQUARE
The fruit nectar product “APU FRUT” will be distributed in the target
market of the town of Abancay, so it is necessary to make a distribution
that allows the product to be made available to potential consumers.
Therefore, for the distribution of fruit nectar “APU FRUT” an indirect
marketing distribution channel will be used with 01 level of intermediary,
which will be made up of the retailers available in the target market, such
as: wineries, stores, kiosks, carts, markets, minimarket, etc.
The aforementioned distribution channel is shown in the following graph:

GELMID Retailer Final

GELMID Retailer Final
Industries SRL consumer
Industries SRL consumer

On the other hand, Industrias GELMID SRL, to promote and promote the
distribution of its fruit nectar product “APU FRUT”, in the market of the
town of Abancay, will design and execute an incentive policy, which will
consist of adding retailers for the purchase of the product an extra 20%,
this additional will mean for retailers the profit margin for reselling the
“APU FRUT” fruit nectars.
The additional 20% is granted for purchases of more than 5 units. In this
way, the products that are delivered additionally will be structured as
follows:

Purchase Additional Total

Prices/.
quantity (20%) (Qty.)
05 01 06 4.00
10 02 12 8.00
15 03 18 12.00
20 04 24 16.00

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11.4. PROMOTION
Because “APU FRUT” fruit nectar is a new product on the market, it is
considered necessary to carry out the promotion of the product in two
different stages: the launch stage and the development and consolidation
stage.
The main objectives of the promotion to be carried out will be:
 Make the product known.
 Capture attention and provide information about the product.
 Generate demand.

11.4.1. LAUNCH STAGE

In this stage, a promotion strategy will be established based on a
“Push Strategy”, which will be made up of the company's sales
force and will have direct contact with retailers. At this stage,
advertising posters will also be distributed in the product sales
centers, in order to reinforce the strategy.

11.4.2. DEVELOPMENT AND CONSOLIDATION STAGE

At this stage, a “pull strategy” will be applied to boost sales,
which will ensure that the consumer remembers the product so
that it is present in their purchase decision.
In the application of this strategy, advertising will be used, which
will be disseminated in the different media.
The objective of this strategy is to ensure that consumers ask for
the product from intermediaries and they from the producer
(GELMID Industries).
Likewise, to reinforce this strategy, public relations activities will
be established to achieve consumer trust and credibility.

P. 046
 Finally, the means of communication to use for the execution of
this stage are:
 Television
 Radio
 Internet
 Written press (radio and magazines)
XII ORGANIZATION AND HUMAN RESOURCES

12.1. ORGANIZATIONAL STRUCTURE PROPOSAL.

12.1.1 MODEL OF THE ORGANIZATIONAL STRUCTURE.

12.1.1.1 Senior Management Body.

 General Meeting of Partners

12.1.1.2 Management Body.

 General management

12.1.1.3 Advisory Bodies

 Technical Advisor I.

 Technical Advisor II.

12.1.1.4 Support Bodies.

 Accounting.

12.1.1.5 Line Organs.

 Production and Supply Department

 Marketing Department.

o Section 01: Sales

o Section 02: Marketing

12.1.2. MANUAL OF ORGANIZATION AND FUNCTIONS (MOF)

PURPOSE:
Ensure that the Company “Industrias GELMID”, through the
formalization of its organization and institutional functions, specifies at

P. 047
 the level of Positions, the responsibilities and actions consistent with the
achievement of its objectives.

SCOPE
This Organization and Functions Manual is applicable to all personnel
who work in the “GELMID Industry”, and its compliance must be
rigorously demanded from both partners and personnel who work in the
Company.

CONTENT
This Organization and Functions Manual presents a methodological
scheme that allows determining the general and specific functions of each
of the Bodies and of each position, within the organic order demanded by
Senior Management for the improvement of competent decisions.

APPROVAL

This MOF has been approved by the General Meeting of Partners in

session, to comply with the objectives mentioned in this document.

PERIOD OF DURATION

The duration period is 01 year, if approved by the General Meeting of

Partners.

12.1.3. ORGANIZATIONAL OBJECTIVES.

 Establish the necessary policies and programs to introduce

GELMID industries products into the local and regional market.

 Establish production and distribution procedures for “Gelmid”

Industries products, to make it competitive and maintain it in the
market.

 Design short and long-term plans for GELMID Industries to

compete in the Local and Regional Market.

P. 048
  Design an effective, efficient and appropriate organizational
structure for the nature and activity of the company.

 Evaluate the economic results of the Company.

12.1.4. FUNCTIONS AT JOB LEVEL.

12.1.4.1. Senior Management Body

12.1.4.1.1. General Meeting of Partners:

 SUMMARY FUNCTION

President of the General Meeting of Partners

 SPECIFIC FUNCTIONS

 Agree and ratify all acts and operations of the company.

 Call a Quorum and General Management Meeting.

 Appoint, ratify or remove members of general management

and department directorates.

 Delegate authority to the manager and department directors.

 Resolve in cases in which the law or statute provides for its

intervention and in any other case that requires the social
interest.

12.1.4.2. Management Body

12.1.4.2.1. General management:

 SUMMARY FUNCTION

General manager

 SPECIFIC FUNCTIONS

 Legally and administratively represent the company.

 Celebrate and execute ordinary contract acts corresponding

to the corporate purpose.

 Direct and control the administrative functions of the

Company.

 Carry out strategies to achieve goals.

P. 049
  Coordinate the programming of activities.

 Participate in the general meeting of partners.

 Carry out the functions of planning activities, strategies and

programs of the Company.

 Make and present proposals to the General Meeting of

Partners.

 Obtain funds and provide capital used in the operation of

the Company.

 Control cash, make decisions and formulate plans for

capital applications and collections.

 Efficiently allocate the Company's financial resources.

 Design the Company's annual budget plan.

12.1.4.3. Advisory Bodies

 SUMMARY FUNCTION

Technical Advisor I.

 SPECIFIC FUNCTIONS

 Provide advice on technical aspects of transformation of

inputs and raw materials.

 Coordinate the general production of products with the

production department.

 Intervene in the verification of quality control in

coordination with the quality control section of the
Production Department.

 SUMMARY FUNCTION

Technical Advisor II.

 SPECIFIC FUNCTIONS

P. 050
  Provide advice on technical aspects of business
management

 Guide the actions inherent to the business management of

the project.

 Coordinate with the general manager and heads of

departments and sections to carry out business planning and
management.

 Provide convenient and necessary information for decision-

making in business management.

12.1.4.4. Support Body: Accounting

 SUMMARY FUNCTION

Counter

 SPECIFIC FUNCTIONS

 Carry out activities related to taxes, budgets, internal

auditing and cost accounting.

 Carry out the management of accounting books and

determine the taxes and duties to be paid.

 Identify and analyze the income, expenses and operating

expenses of the Company and periodically report to the
general manager.

 Maintain Administrative Documentation for decision

making.

 Carry out all activities related to the Financial Aspects of

the Company.

12.1.4.5. Line Organs

12.1.4.5.1. Production departament:

 SUMMARY FUNCTION

Production director

 SPECIFIC FUNCTIONS

P. 051
  Supervise and execute the production process.

 Formulate and develop the most appropriate methods for

the production of the product.

 Coordinate labor, materials, tools and facilities to improve

production as best as possible.

 Design production programs.

 Execute Materials Planning.

 Carry out coordination with other organizational units.

 Conduct research on permanent innovations

 Conveniently design and innovate products when necessary.

 Make purchases, store and provide the raw materials

necessary for production.

 Carry out Storage activities.

 Prepare the Supply Program

 Verify the good condition and quality of the raw materials

for the production and transformation process.

 Monitor the hygiene and quality of the product.

 Plan, organize and coordinate the quality control process.

12.1.4.5.2. Marketing Department.

 SUMMARY FUNCTION

Marketing Director.

 SPECIFIC FUNCTIONS

 Supervise the commercialization and marketing process,

verifying faithful compliance with the planned objectives.

 Prepare monthly reports on the evolution and development

of sales in the Market, based on quantitative and qualitative
values.

P. 052
  Plan, organize, direct and coordinate the activities and
necessary resources for the distribution and sale of products
in the market.

 Sales Section

Head of Sales Section

 Promote sales in all markets.

 Provide appropriate customer service.

 Properly direct the sales process.

 Design biweekly sales programs.

 Make and record the collections and payments made.

 Periodically present reports on collections and payments.

 Issue documents and payment vouchers.

 Distribute the product in strategic places in the Market.

 Establish contact with distributors to meet market demand.

 Coordinate activities with distribution channels.

 Constantly create new distribution channels.

 Guarantee the distribution of products in optimal conditions.

 Marketing Section
Head of Marketing Section
 Plan and develop new products.

 Meet consumer demand.

 Carry out market studies on new ways of offering the

product and consumer needs.

 Search new markets for current products.

P. 053
 12.1.5. ORGANIZATION CHART.

GENERAL MEETING OF
PARTNERS.
4

TECHNICAL ADVISOR
ACCOUNTING
1 2

GENERAL
MANAGEMENT

PRODUCTION MARKETING
DEPARTAMENT DEPARTMENT

1 2

SALES
1

MARKETING
1

XII LEGAL AND CORPORATE ASPECTS

13.1. CORPORATE MODALITY
“Industrias GELMID” will be organized and constituted under the
modality of a Limited Liability Company ; for being the most appropriate
corporate form and adaptable to the nature and purposes of the project;
and also for having a simple organization that allows us to act with
greater agility.
13.2. LICENSES AND PERMITS

P. 054
 Regarding Licenses and permits, Industrias GELMID SRL, in order to
enter and operate in the local market of Abancay, must have the
following authorizations, licenses and rights:
 Application for RUC (Single Taxpayer Registry) before the National
Superintendency of Tax Administration (SUNAT)
 Municipal Operating License of the Provincial Municipality of
Abancay.
 Health Permit from the Apurimac Regional Health Directorate
(DIRESA)
 Authorization of accounting books by a Notary Public.

13.3. LEGAL OBLIGATIONS:

Regarding the Legal obligations that Industrias GELMID SRL must
comply, we have:
 Payment of Operating License to the Provincial Municipality of
Abancay.
 Declaration and payment of the General Sales Tax.
 Declaration and Payment of Income Tax.
 Payment of Health Permit and Health Card to the Ministry of Health.
 Payment of Permits to the Ministry of Agriculture and the Ministry of
Production.
 Registration and payment of the corresponding fee in the National
Superintendency of Public Records.

13.4. TAX REGIME

“Gelmid” Industries will benefit from the Special Income Regime (RER),
for obtaining third category income, coming from the development of
commercial and/or industrial activities. Therefore, you will have to keep
the accounting records of: Purchase record, sales and income record, and
inventory and balance sheet.
You will also have to pay Income Tax (2.5% of net income) and General
Sales Tax (19%).

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XIV. INVESTMENT PLAN, FINANCING AND BUDGET
14.1. INVESTMENT PLAN

14.1.1. INTANGIBLE ASSETS

TOTAL COST
COMPONENT
S/.
Promotion expenses 100.00
Other expenses 20.00
TOTALS/. 120.00

14.1.2. WORKING CAPITAL

DESCRIPTION SUBTOTAL TOTAL

to) Raw material. 102.00
 Mango 72.00
 Apple 30.00
b) Supplies. 57.00
 acids 2.00
 Sugar 55.00
c) Materials. 274.00
 Packaging 238.00
 Tags 36.00
d) other expenses 200.00 200.00
TOTALS/. 633.00

14.1.3. FIXED ASSETS

UNIT
DESCRIPTION AMOUNT TOTAL
PRICE

Metal scaffolding. 03 60.00 180.00

Wood tables. 04 35.00 140.00

Wood chairs. 08 15.00 120.00

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 Counter 01 160.00 160.00

TOTAL S/. 600.00

INTANGIBLE INVESTMENT 120.00
WORKING CAPITAL 633.00
FIXED ASSETS 600.00
TOTAL INVESTMENT S/. 1353.00

14.1.4. INVESTMENT STRUCTURE

14.2. FINANCING PLAN

14.2.1. OWN RESOURCES
In the first phase of the project, the investment will be assumed in
its entirety and entirety by the partners, as shown below:

OWN CAPITAL (CONTRIBUTIONS FROM PARTNERS)

PARTNER CAPITAL
450.00
450.00
450.00
450.00
TOTAL S/. 1,800.00

14.2.2. CONFORMATION OF PARTNERS'

CONTRIBUTIONS

DESCRIPTION SUBTOTA TOTAL

L (S/.)
a) Monetary Assets (Current 1,200.00
Assets)
b) Non-monetary Assets 600.00
(Fixed Assets)
 03 Metal scaffolding 180.00

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 140.00
 04 Wooden tables
120.00
 08 Wooden chairs
 01 Counter 160.00

TOTAL 1800.00

14.3. CASH FLOW

MONTHLY CASH FLOW (PROJECTED)

Months
Detail December January February March April May June
1, Income

mango sales 600,00 800,00 800,00 800,00 1.600,00 1.600,00 1.600,00

apple sales 200,00 800,00 800,00 800,00 1.600,00 1.600,00 1.600,00

Total income 800,00 1.600,00 1.600,00 1.600,00 3.200,00 3.200,00 3.200,00
2, Expenses

Raw material 102,00 204,00 204,00 204,00 408,00 408,00 408,00

Supplies 57,00 114,00 114,00 114,00 228,00 228,00 228,00

Materials 274,00 548,00 548,00 548,00 1.096,00 1.096,00 1.096,00

Wages 70,40 140,80 140,80 140,80 281,60 281,60 281,60

Rental (Maq. And eq.) 40,00 80,00 80,00 80,00 160,00 160,00 160,00

Fuel (gas) 35,00 70,00 70,00 70,00 140,00 140,00 140,00

Transport 10,00 20,00 20,00 20,00 40,00 40,00 40,00

Total expenses 588,40 1.176,80 1.176,80 1.176,80 2.353,60 2.353,60 2.353,60
3, Balances of the
period 211,60 423,20 423,20 423,20 846,40 846,40 846,40
4, Cash Balance

Initial balance - 211,60 634,80 1.058,00 1.481,20 2.327,60 3.174,00

Balance of the period 211,60 423,20 423,20 423,20 846,40 846,40 846,40
Final balance 211,60 634,80 1.058,00 1.481,20 2.327,60 3.174,00 4.020,40

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XV EVALUATION CRITERIA
15.1. NET PRESENT VALUE (NPV)

Investment = S/. 1347.00

COK = 10%
n = 7 months

15.2. INTERNAL RATE OF RETURN (IRR)

Investment = S/. 1347.00

n = 7 months

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 15.3. COST/BENEFIT RATIO (C/B)
COK= 10%

15.4. INVESTMENT RECOVERY PERIOD (PR)11

PR = 3+ 289.00
423.20

PR = 3.68 Months

11
See Formula in Annex No. 05

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ANNEXES

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 ANNEX Nº 01
Total population table of the Province of Abancay.
District room
number
Abancay 54 180
Chacoche 1 381
Circa 3 105
Curahuasi 18 556
Huanipaca 5 257
Lambrama 3 577
Pichirhua 4 564
San Pedro de Cachora 3 763
Tamburco 7 216
TOTAL PROV. 101 599
ABANCAY
SOURCE: National Institute of Statistics and Informatics

ANNEX Nº 02

MARKET RESEARCH FOR THE FRUIT NECTAR PRODUCT

“APU FRUT”

CHAPTER I
THEORETICAL APPROACH

1.1. Theoretical framework:

1.2.1. PRODUCTION

It is considered one of the main economic processes, the means by

which human work creates wealth. Regarding the problems involved in
production, both private producers and the public sector must take into
account various economic laws, price data and available resources. The

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 materials or resources used in the production process are called factors
of production.

1.2.2. TARGET MARKET

Studying the target market involves investigating the potential markets

for your product, their conditions and demands. This market research
must be rigorous, because the success or failure of the Company will
largely depend on it.

CHAPTER II
METHODOLOGY
2.1. The problem:

2.1.1.- Description of the Problem

GELMID SRL, is an Abanquina company dedicated to the production and
marketing of “Apu Frut” fruit nectars. Currently, it plans to venture with
its product into the local market of Abancay, which requires carrying out a
Market Research that will have the purpose of determining the
consumption and preferences of fruit nectar; the same that will allow us to
have the necessary information to carry out the planning of Marketing
strategies and programs in the target market. For which the following
research question is posed.

2.1.2.-Problem Definition
 How is the consumption of fruit nectar structured in the city of
Abancay in the fourth quarter of 2006?
 What are the preferences for fruit nectar in the city of Abancay in
the fourth quarter of 2006?

2.1.3.- Justification
This research is carried out with the purpose of having relevant and accurate
information on the consumption and preferences of consumers in the market of the
city of Abancay, which will allow the design of the marketing strategies and

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 programs necessary for the introduction of the fruit nectar product “APU FRUT”
in the target market

2.2. Purpose and Objectives

2.2.1.-General Objective
 Determine the structure of fruit nectar consumption in the city of
Abancay.
 Define preferences for fruit nectar in the city of Abancay.
2.2.2.- Specific Objectives
 Determine the rate and frequency of fruit nectar consumption
 Identify the factors that influence fruit nectar consumption.
 Know the tastes and preferences of consumers regarding fruit
nectars.
 Determine the characteristics and attributes of the products that the
market demands.
 Determine the price for the product consumers accept they are able
to pay.
 Define the appropriate distribution channels to place the product
within the reach of the target segment.
 Define appropriate promotional tools to communicate the product
offering to target consumers.

2.4. Research Method and Design

2.4.1.- Research Design
Quantitative investigation.
2.4.2.- Scope of the Research
Descriptive.
2.4.3.- Data Collection Techniques
 Surveys.
2.4.4.- Population and Sample
2.4.4.1. Population

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The target population is made up of segments A and B of the town of
Abancay, which has a total population of 54,180 inhabitants.
The aforementioned segments are constituted as follows:
 Segment A: Children (population between 7 and 14 years old) =
13,094
 Segment B: Young people (population between 15 and 24 years
old) = 12,724
 Segment C: Adults (population between 25 and 40 years old) =
12,039
Then, the total population, which is made up of the sum of segments A, B
and C, is 37,867.

2.4.4.2. Sample.
To find the sample, the stratified sampling technique by proportional
allocation was used, from the qualitative approach.

n = NZ 2 Σ WnPnQn
Ne 2 +Z 2 Σ WnPnQn

Data:

N = 37,867
Z = 1.96
e = 0.05
W1 = 35%
W2 = 34%
W 3 = 31%

c 31 %
1 No
2 Yeah
3 No
4 Yeah
5 Yeah

P1 = 80% P2 = 60% P3 = 60%

Q1 = 20% Q2 = 40% Q3 = 40%

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n = 37 867 (1.96 2 ) (0.35X0.80X0.20+0.34X0.60X0.40+0.31X0.60X0.40)
37867X0.05 2 + (1.96 2 )0.35X0.80X0.20+0.34X0.60X0.40+0.31X0.60X0.40)

n = 30 839.61 / 95.48
n= 323

So:

The sample for each segment is:

Segment A: Children (n 1) = 323 X 0.35 = 113

Segment B: Youth ( n 2) = 323 X 0.34 = 110

Segment C: Adults ( n 3) = 323 X 0.31 = 100

ANNEX Nº 03
Population by Five-Year Groups of the 2005 census - Dist. Abancay

Age groups room

number
0-4 4 814
5-9 6 050
10-14 7 044
15-19 6 844
20-24 5 890
25-29 4 529
30-34 3860
35-39 3 650
40-44 2 832
45-49 2 246
50-54 1 768
55-59 1 231
60-64 1 058
65-69 792

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 70-74 559
75-79 430
80-84 278
85-89 199
90-94 67
95-99 39

ANNEX Nº 04
NECTAR CONSUMPTION IN THE CITY OF ABANCAY

1. ¿Consume Ud. Néctar de frutas?

77.78%

80%
SI
60% NO
22.22%
40%

20%

0%
1

Source: Own elaboration - Market Research - GELMID SRL

ANNEX Nº 05

CAPITAL RECOVERY PERIOD FORMULA (PR)

Period of = Period Before + Cost not recovered at the beginning of the period
Recovery full recovery Cash flow during the period

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