Business Plan On Candies

PRODUCT LAUNCH OF CANDIES

PRINT ADVERTISEMENT.

INDEX Model/ Features of Product. USP and Tagline. Industry Scenario. Competitors in the Market. SWOT Analysis. Marketing Environment. Which Market Concept Used And Why? Segmentation, Targeting, and Positioning. Consumer Buying Process. Marketing Mix. Product Life Cycle. Labeling Packaging and Advertising.

Bibliography.

PREFACE

“TRUFFLES CANDY” is a fun and friendly family business that works hard to provide you with the highest quality, most delicious candy on the planet. In this field profits are too good as it is of mass marketing type. Chocolates are on everyone’s mind i.e. young, old, kids….. Everybody likes chocolates... “Company wants to fulfill its mission of serving the society what it wants & desires. At the same time considering and focusing on the health & fitness of the consumers. Youth today are very very health conscious so though they have a desire to eat candy they won’t eat due to they are priority towards their health. Thinking of children’s desires and health, mothers are worried about the fact that whatever children eat today is not nutritional for them& especially when it comes to candies. So taking into consideration children’s desires and mothers’ worries & dilemma of youth, companies’ research and development department has come up with “truffles” & its variants that are low in fat & are as nutritional as grains & vegetables for kids.

INTRODUCTION: TRUFFEL CANDIES is a provider of high-quality, uniquely crafted chocolates. We have developed an alliance with HUL, one of the premier confectioners in the INDIA, to provide us with a range of unique products. The Company concept was initially formed in August of 2000. Upon final approval the company will register an official trademark with the INDIAN Patent and Trademark Office. COMPANY OWNERSHIP It is a privately held partnership firm. It is registered as a Limited Company, with ownership divided: DEEPALI RATHI – 30% SNEHAL DHULE- 35% MANALI KHANDELWAL- 35% COMPANY LOCATIONS AND FACILITIES

The company office is located in the owner's residence. Initially, we will not maintain inventories or handle fulfillment, so warehousing facilities will not be necessary. Our plan includes the establishment of an office outside of our residence to house an expanded staff in Year Three. START-UP SUMMARY Almost 40% of start-up funds will go development and product research and includes a new Personal Computer has business and accounting software. The balance of funds will be used to first three months of operation.

towards, administrative, consulting, Web page development costs. Expensed equipment been made in order to run the requisite maintain a positive cash balance for the

OBJECTIVES • To build a substantial cash balance by the end of year three. • To contribute Rs.100,000 by our third year to non profit organizations that assist organizations. • To reach increase sales ten-fold by the end of Year Three. • To pay off any loans or equity investments by the end of Year Three. MISSION TRUFFEL CANDIES Designs is dedicated to becoming the premier provider of highquality products to the market for the purpose of raising funds. We will accomplish our mission by: • Forming strategic alliances with companies and organizations that share our vision. • Conducting our business fairly and ethically. • Treating our employees with dignity and respect. MODEL/ FEATURES OF THE PRODUCT Sugar Candy: In most candies sugar is a fundamental ingredient; in fact, some candies are composed entirely of cooked sugar. Even though the candies below all rely on sugar or sugar syrups for their taste and composition, there is still an enormous variety among the confections, ranging from caramels and toffee to fondant, marshmallows, and lollipops. Working With Sugar. Sugar & Hard Candies. Caramel. Toffee. Fondant. Fruit Candy. Nut Candy. Gummy & Gelatin Candy. Marshmallow. Marzipan. Nougat. SPECIAL FEATURES. Accurate sweeteners added. Sugar free candy also available. Different flavors of natural origin. Flavors resembling with the tradition of India. Mouth freshener candy containing mint flavor. USP AND TAGLINE UNIQUE SELLING PREPOSITION

USP of our product is that our product “truffles” and its variants is that it is sugar free, is low in fat and calories and provides necessary nutritional values and is available at affordable prices. In short it is “BEST QUALITY, VARIETY AND VALUE AT AFFORDABLE PRICE”. The strategy focused is to stay close to the customers, understanding their needs, and exceeding their expectations. 1. 2. 3.

Its different flavors. Natural origin of sweeteners and flavors. High quality at economic price. TAGLINE

“THE TASTE YOU CAN’T RESIST”

INDUSTRY SCENARIO The wholesale candy industry has gone through so many changes in the last 50 years it is incredible. The industry has evolved from many small players in the early 1960's and 1970's to a much smaller set of mid sized to huge wholesale candy suppliers. Manufactures are also much stricter with the criteria needed to buy direct. The industry consolidation has also required the wholesale candy supplier to carry a broad product base. This is required as customers are looking for one stop shopping. Many wholesale candy companies are being bought by the larger ones, are forced out of business or if lucky can find a niche area to play in. Adding to the industry pressures are wholesale candy price increases. While candy prices have continued to increase over the last few years in 2007 and 2008, customers are often very price conscious and demanding. Recently written in Professional Candy Buyer magazine is an article citing how Hershey and Mars announced that due to the rising cost of milk and cocoa it is raising its prices again. This is the second time in a year now. This increase is said to raise wholesale prices about 12% and 11% respectively. This is on top of a 5% increase in April 2008. For Hershey the increase will take effect immediately and Mars the increases will be introduced through March 2009. Energy and commodity prices are said to be the cause of the increases. The increase in costs has gotten to such a point that there are even discussions on modifying the standards to lower cocoa butter contents to save costs. Currently the existing federal standard for chocolate says that chocolate in its purest state must contain between 50% and 60% cocoa butter. The proposal includes using a vegetable fat to supplement the product at a lower cost. A relatively new avenue for wholesale candy suppliers is to use the internet as a means for attracting new customers. Online wholesale candy sales do have high barriers of entry. The complex and technical demands of establishing an online presence and the associated required knowledge is often not in the skill set of the candy wholesaler. This then requires additional funds to invest in technology and on line marketing. However, if the barriers of entry can be over come, online

sales offer the opportunity for the small candy wholesaler to have a large look and presence. While website design and maintenance will cost money it is possible that revenues can increase to defer the costs. In addition the costs of hiring a sales force can also be reduced.

COMPETITORS IN MARKET ALPENLIEBE Alpenliebe, a hard-boiled sugar candy, was one of the first brands to be launched after Perfetti Van Melle (India) Ltd. (PVMI) launched its operations in India in 1994. A wholly-owned subsidiary of the world's third largest confectionery major Perfetti Van Melle S.p.A, PVMI also had other big brands such as Center Fresh, Big Babol, Chlormint, Mentos, Happydent White, Marbles, Chocoliebe, etc., in its brand portfolio. HAJMOLA CANDY The zingy tangy candy that's fun to have any time of the day. And what's more, it gets your digestive juices working better. That's a great way to enjoy while staying healthy – with Hajmola Candy's khatta meetha taste and 3 fun-filled flavours. FUNDA MINT The latest entrant in the 50p mint category in India is Fundamint. It seems to peg its differentiation on Indian ingredients like saunf (fennel seeds) and hence the positioning: dil se desi . Funda Mint - "Mint with a twist": India has extremely diverse taste requirements. Gujaratis love a sweet touch to their foods, whereas people from Andhra Pradesh prefer their food to be extremely spicy. On this thought, Funda-Mint took birth to provide the Indian consumer with a mint that refreshes them instantly and ensures it caters to India’s varied taste. A mint that is modern but is essentially "Dil Se Desi". Currently available in 2 flavours – Saunf Fresh & Double Thanda. While Double Thanda provides you that extra strong mint to freshen your breath in an instant, Saunf Fresh gives you mint freshness in a unique flavor that Indians are used to having after a meal. CHOCOLIEBE Perfetti has introduced a new candy brand Chocoliebe. Although this is a new brand, the brand has strong secondary association with th e blockbuster candy Alpenliebe. Chocoliebe is the chocolate filled caramel candy and will be taking on the Cadbury's Eclairs. Perfetti has a chocolate brand Chocotella. Chocoliebe is being positioned on the emotional platform of Love. Cadbury's has a product line extension of Eclairs Crunch which will take on Chocoliebe. Chocoliebe uses the

tagline " Pyar Do Pyar Lo" which translates to " Give Love ,Take Love".

S.W.O.T Analysis The over all evaluation of a company’s strength, weaknesses, opportunities and threats is called SWOT analysis. The SWOT analysis is divided into two parts. The first one is the internal environment from where the strength and weaknesses of the organization can be identified and the second one is the external environment which contains the opportunities the company can avail of and the threats that the company may have to face. The S.W.O.T analysis of our organization is as follows, STRENGTHS • Totally innovative product – the product which we are about to launch is a totally innovative product which is going to be introduced in the Indian market. • Patented product – our product is patented for three years, this protects our product from being copied by other competitors. • Nation wide launch – we are planning to launch our product throughout the city. • Low cost of production – the production line is using the latest technology which will help in mass production so that we can enjoy economies of scale. WEAKNESS • As it is going to be a totally new product being introduced into the market, acceptance by the public those who are used to particular brand for a long time, will be at a low. • The greatest drawback to the company will be if the product is not available to the consumer. • As we are launching new product in the market cost of production will be high and revenue will be low. OPPORTUNITIES • People want to eat chocolates at the same time remain fit in shape • Candies are consumed by 90% of the population • Candies are consumed by people of all age group • As we are completely new to the field of the candies, there is a wide opportunity of getting accepted since the present generation does not believe in sticking to old and outdated products. They are always in search of something new and believe in getting the best for what they spend. • We have associated with a famous distribution agencies in India to help us reach our product to the nook and corners of urban/rural India THREATS • Biggest threats are competitors who are already present in the market • There is a threat of the duplication or cheap substitution. • We have threats from the MNC’s if they make substituted products with similar advantages. • Non-acceptance due to completely innovative idea. MARKETING ENVIRONMENT

The marketing environment surrounds and impacts upon the organization. There are

three key perspectives on the marketing environment, namely the 'macro environment,' the 'micro-environment' and the 'internal environment’. The micro-environment This environment influences the organization directly. It includes suppliers that deal directly or indirectly, consumers and customers, and other local stakeholders. Micro tends to suggest small, but this can be misleading. In this context, micro describes the relationship between firms and the driving forces that control this relationship. It is a more local relationship, and the firm may exercise a degree of influence. The macro-environment This includes all factors that can influence and organization, but that are out of their direct control. A company does not generally influence any laws (although it is accepted that they could lobby or be part of a trade organization). It is continuously changing, and the company needs to be flexible to adapt. There may be aggressive competition and rivalry in a market. Globalization means that there is always the threat of substitute products and new entrants. The wider environment is also everchanging, and the marketer needs to compensate for changes in culture, politics, economics and technology. The internal-environment All factors that are internal to the organization are known as the 'internal environment'. They are generally audited by applying the 'Five Ms' which are Men, Money, Machinery, Materials and Markets. The internal environment is as important for managing change as the external. As marketers we call the process of managing internal change ‘internal marketing’.

WHICH MARKETING CONCEPT USED AND WHY??? PRODUCT CONCEPT This concept states that consumer will favour those products that offer most quality performance and innovative features. So according to this as candies is a product which keeps on changing with innovative features. This concept also totally devotes itself to providing varied features in the product so as to sell more. Managers of such organizations focus on making superior products and improving them overtime. But the major problem faced by the marketers is marketing myopia. It is a situation where marketers narrowly focus on the product rather than its basic core needs/ features needed to be satisfied. PRODUCTION CONCEPT In this concept production dominates the thinking process. They believe that marketing can be managed by managing production. The concept holds that consumers would as a rule support those products that are produced in great volume at a low unit cost. All efforts is focused on production. SEGMENTATION, TARGETING, AND POSITIONING. SEGMENTATION Market segmentation is the process of grouping a market i.e. customers into smaller sub groups. This is not something that is arbitrarily imposed on society: it is derived from the recognition that the total market is often made up of sub

markets (called segments). These segments are homogeneous within (i.e. people in the segment are similar to each other in their attitudes about certain variables). Because of this intra group similarity, they are likely to respond somewhat similarly to a given marketing strategy. That is, they are likely to have similar feeling and ideas about a marketing mix comprised of a given product or service, sold at a given price, distributed in a certain way, and promoted in a certain way. A market segment consists of a group of customers who share a similar set of needs and wants. Consumer segments can be segmented using several bases: Geographic segmentation Demographic segmentation Psychographic segmentation Behavioral segmentation TARGETING A target market is the market segment which a particular product is marketed to. It is often defined by age, gender and/or socio-economic grouping. Targeting strategy is the selection of the customers you wish to service. The decision involved in targeting strategy includes: Which segments to target? How many products to offer? Which products to offer in which segments? There are three steps to targeting 1. Market Segmentation 2. Target Choice 3. Product Positioning Patterns of target market selection: 1. Single-segment concentration 2. Selective specialization 3. Product specialization 4. Market specialization 5. Full market coverage POSITIONING In marketing, positioning is the technique by which marketers try to create an image or identity in the minds of their target market for its product, brand, or organization. It is the relative competitive comparison your product occupies in a given market as perceived by the target market. Positioning is something (perception) that is done in the minds of the target market. A product’s position is how potential buyers see the product. Positioning is expressed relative to the position of competitors. PROCESS OF POSITIONING Defining the market in which the product or brand will compete. Identifying the attributes that define the product ‘space’ Collecting the information from a sample of customers about their perceptions of their product on the relevant attributes Determine each products share of mind Determine each products current location in the product space Determine the target market’s preferred combination of attributes Examine the fit between: 1. The position of competing products 2. The position of your product 3. The position of the ideal vector Positioning is not what you do to the product; it is what you do to the mind of

the prospect. Hence our basic approach will not be to create something new and different in the minds of our prospective consumers but to manipulate what’s already up in their mind. Positioning Statement TRUFFEL CANDIES Designs' products give the customer a high-quality product that has true value and also allows them to contribute toward a cause. For fund-raising function coordinators who are looking for a distinctive product to make a lasting impression, TRUFFEL Chocolates will more than meet that need. Currently, those event coordinators do not have such a distinctive product. Pricing Strategy Our pricing strategy will be developed by comparing our products to other like products and then taking into consideration what the market will bear. We are selling a unique product for a specific reason -- to raise money for benevolent programs. Because of this approach, we will be able to price our product slightly higher than comparable products in the market. Sourcing Sourcing is critical for any enterprise, especially a retail operation. TRUFFEL CANDIES Design's first line of products - high quality chocolates- will be produced exclusively by HUL of INDIA. We have entered into a non-binding agreement with HUL’s, which can handle large volumes of product. Orders will be placed through OUR main office and then communicated to HUL’s for fulfillment. This will ensure the most expedient delivery and the freshest product possible. Advertising will be outsourced. Most sales promotions and public relations work are handled in-house by Deepali Rathi. Professional administrative and consulting tasks will also be outsourced CONSUMER BUYING PROCESS

If a marketer can identify consumer buyer behavior, he or she will be in a better position to target products and services at them. Buyer behavior is focused upon the needs of individuals, groups and organizations. It is important to understand the relevance of human needs to buyer behavior (remember, marketing is about satisfying needs). To understand consumer buyer behavior is to understand how the person interacts with the marketing mix. As described by Cohen (1991), the marketing mix inputs (or the four P's of price, place, promotion, and product) are adapted and focused upon the four P's of price, place, promotion, and product) are adapted and focused upon the consumer. The psychology of each individual considers the product or service on offer in relation to their own culture, attitude, previous learning, and personal perception. The consumer then decides whether or not to purchase, where to purchase, the brand that he or she prefers, and other choices. MARKETING MIX What is the marketing mix?

4 PS MARKETING MIX the marketing mix is probably the most famous marketing term. Its elements are the basic, tactical components of a marketing plan. Also known as the Four P's, the marketing mix elements are price, place, product, and promotion. The concept is simple. Think about another common mix - a candy mix. All candies contain essence, starch , flour, and sugar. However, you can alter the final candy by altering the amounts of mix elements contained in it. It is the same with the marketing mix. The offer you make to you customer can be altered by varying the mix elements. So for a high profile brand, increase the focus on promotion and desensitize the weight given to price. Another way to think about the marketing mix is to use the image of an artist's palette. The marketer mixes the prime colours (mix elements) in different quantities to deliver a particular final colour. Every hand painted picture is original in some way, as is every marketing mix. Some commentators will increase the marketing mix to the Five P's, to include people. Others will increase the mix to Seven P's, to include physical evidence and process. PRODUCT A product is anything that can be offered to a market to satisfy a want or need. Products that are marketed include physical goods, services, experiences, events, persons, places, properties, organizations, information and ideas. For many a product is simply the tangible, physical entity that they may be buying or selling. You buy a new car and that's the product - simple! Or maybe not. When you buy a car, is the product more complex than you first thought? PRICE Price is the second element of the marketing mix. Price is the value exchange that occurs between buyers and sellers for a product or service. It is a vital decision area in marketing that generates revenue. Price is the most important determinant of the profitability of the business. Factors related to price include legal and regulatory guidelines, pricing objectives, pricing strategies, and options for increasing sales. PLACE The third element of the marketing mix is place. Place refers to having the right product, in the right location, at the right time to be purchased by consumers. This proper placement of products is done through middlemen called the channel of distribution. The channel of distribution is comprised of interdependent manufacturers, wholesalers, and retailers. Each participant in the channel of distribution is concerned with three basic utilities: time, place, and possession. PROMOTION Promotion is the fourth element in the marketing mix. Promotion is a communication process that takes place between a business and its various publics. Publics are those individuals and organizations that have an interest in what the business produces and offers for sale. Thus, in order to be effective, businesses need to plan promotional activities with the communication process in mind. There are four basic promotion tools: advertising, sales promotion, public relations, and personal selling. PRODUCT LIFE CYCLE The Product Life Cycle (PLC) is based upon the biological life cycle. For example, a seed is planted (introduction); it begins to sprout (growth); it shoots out leaves and puts down roots as it becomes an adult (maturity); after a long period as an adult the plant begins to shrink and die out (decline). In theory it's the same for a product. After a period of development it is introduced or launched into the market; it gains more and more customers as it grows; eventually the market stabilizes and the product becomes mature; then after a period of time the product is overtaken by development and the introduction of

superior competitors, it goes into decline and is eventually withdrawn However, most products fail in the introduction phase. Others have very cyclical maturity phases where a decline sees the product promoted to regain customers.

STRATEGIES FOR THE DIFFERING STAGES OF THE PRODUCT LIFE CYCLE Introduction The need for immediate profit is not a pressure. The product is promoted to create awareness. If the product has no or few competitors, a skimming price strategy is employed. Limited numbers of product are available in few channels of distribution. Growth Competitors are attracted into the market with very similar offerings. Products become more profitable and companies form alliances, joint ventures and take each other over. Advertising spend is high and focuses upon building brand.Market share tends to stabilize. Maturity Those products that survive the earlier stages tend to spend longest in this phase. Sales grow at a decreasing rate and then stabilize. Producers attempt to differentiate products and brands are key to this. Price wars and intense competition occur. At this point the market reaches saturation. Producers begin to leave the market due to poor margins. Promotion becomes more widespread and uses a greater variety of media. Decline At this point there is a downturn in the market. For example more innovative

products are introduced or consumer tastes have changed. There is intense pricecutting and many more products are withdrawn from the market. Profits can be improved by reducing marketing spend and cost cutting. LABELLING, PACKAGING AND ADVERTISING LABELLING Indian Food Inspection Agency (IFIA) carries joint responsibility for federal food labeling policies in INDIA under the Food and Drugs Act. IFIA Activities include: • Investigating consumer and industry complaints, • Developing programs designed to encourage compliance with the provisions of the respective Acts, • Developing consumer protection policies. The food label is one of the most important and direct means of communicating product information between buyers and sellers. It is one of the primary means by which consumers differentiate between individual foods and brands to make informed purchasing choices. A label serves three primary functions. • It provides basic product information (including common name, list of ingredients, net quantity, durable life date, grade/quality, country of origin and name and address of manufacturer, dealer or importer). • It provides health, safety, and nutrition information. This includes instructions for safe storage and handling, nutrition information such as the quantity of fats, proteins, carbohydrates, vitamins and minerals present per serving of stated size of the food, and specific information on products for special dietary use. • It acts as a vehicle for food marketing, promotion and advertising (via label, promotional information and label claims such as "low fat", "cholesterolfree", "high source of fibre", "natural", "organic", "no preservatives added", and so on). PACKAGING Packaging is defined as all the activities of designing and producing the container for the product. Well designed packages can create convenience and promotional value. The package is the buyer’s first encounter with the product and is capable of turning the buyer on or off. Packaging can be divided into 3 broad categories: Primary: it is the wrapping of container held by the consumer Secondary: it is used to group quantities of primary packaged goods for distribution and for display in shops. Transit: it refers to wooden pallets, board and plastic wrapping that are used to collate groups into larger loads for transport. Packaging of handmade truffles, dipped berries, cookies and other fun things that are made can be fun. Candy packaging can make chocolate gifts look even more professional. Enjoy it when they say, "You MADE that?!" Packaging of chocolate candy gifts can make a special gift even more special. We have brought packaging supplies right here for you so you do not need to search all over for that perfect packaging. Use truffle cups and boxes as beautiful fun packaging for your truffles. Use cello bags to help with packaging your chocolate candy suckers. Candy foil can help with packaging candies and make them look beautiful and shiny. My favorite packaging to use with my chocolate candies is the mocha spoon handles and bags for a great chocolate spoon to dip in your coffee.

Break-even Analysis A break-even analysis table has been completed on the basis of average costs/prices. Our cost of goods is 50%. The table below shows our average monthly fixed costs, and the amount we need to sell per month to break-even.

Break-even Analysis Monthly Revenue Break-even

13,45,000

Assumptions: Average Percent Variable Cost 50% Estimated Monthly Fixed Cost 6,72,400

Projected Cash Flow We expect to manage cash flow through the cash balance from start-up Investments. No further plans have been made at this point for equity investments through Fiscal Year 2011. pro forma of cash flow FY 2009 FY 2010 Cash Sales

FY 2011

1,90,43,000 4,02,48,000 15,09,43,600

Cash from Receivables 8,54,900 19,54,300 70,88,000 Subtotal Cash from Operations 1,98,98,000 4,22,02,200 15,80,31,600 Additional Cash Received Sales Tax, VAT, HST/GST Received 0 0 0 New Current Borrowing 0 0 0 New Other Liabilities (interest-free) 0 0 0 New Long-term Liabilities 0 0 0 Sales of Other Current Assets 0 0 0 Sales of Long-term Assets 0 0 New Investment Received 0 0 0 Subtotal Cash Received 1,98,98,000 4,22,02,200 15,80,31,600 Expenditures

FY 2009

FY 2010

FY 2011

Expenditures from Cash Spending Bill Payments Subtotal Spent on

Operations 40,00,000 1,32,00,000 2,17,60,000 1,34,38,200 2,77,61,900 10,26,57,400 Operations 1,74,38,200 4,09,61,900 12,44,17,400

Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out 0 0 0 Principal Repayment of Current Borrowing 0 0 0 Other Liabilities Principal Repayment 0 0 0 Long-term Liabilities Principal Repayment 0 0 0 Purchase Other Current Assets 0 0 0 Purchase Long-term Assets 0 0 18,00,000 Dividends 0 0 0 Subtotal Cash Spent 1,74,38,200 4,09,61,900 12,62,17,400 Net Cash Flow Cash Balance

24,59,800 60,09,800

12,40,400 72,50,100

3,18,14,200 3,90,64,300

Projected Profit and Loss The first year of operations will be spent developing sales and business

relationships with key companies and organizations. The sales goal for Year One is conservative and realistic. We feel that doubling sales in Year Two is very attainable and necessary to fund marketing and personnel objectives. Net profits are reduced in Fiscal Year 2010 as staff members are added and marketing expenditures are increased. This strategy will allow truffle candies Designs to attain the aggressive sales goal in Fiscal Year 2011. Pro Forma Profit and Loss FY 2009 FY 2010 FY 2011 Sales 2,00,453 4,23,663 15,88,880 Direct Cost of Sales 1,00,233 2,11,832 Other Production Expenses 0 0 Total Cost of Sales 1,00,233 2,11,832 Gross Margin Gross Margin %

1,00,220 50.00%

Expenses Payroll 40,000 Sales and Marketing and Depreciation 792 Leased Equipment 0 Utilities 3,000 5,000 Insurance 3,600 3,600 Rent 0 5,000 9,600 Payroll Taxes 6,000 Other 0 0 0

2,11,831 50.00%

7,94,441 7,94,441

7,94,439 50.00%

1,32,000 2,17,600 Other Expenses 27,300 1,600 1,600 0 10,000 6,000 3,600 19,800

Total Operating Expenses

44,500

32,640

80,692

2,11,500

Profit Before Interest and Taxes 19,528 EBITDA 20,320 1,931 3,97,499 Interest Expense 0 0 0 Taxes Incurred 5,858 99 1,18,770 Net Profit 13,670 232 2,77,129 Net Profit/Sales 6.82% 0.05% 17.44%

331

3,98,540 3,95,899

1,17,500

Projected Balance Sheet All of our tables will be updated monthly to reflect past performance and future assumptions. Future assumptions will not be based on past performance but rather on economic cycle activity, regional industry strength, and future cash flow possibilities. We expect solid growth in net worth beyond the year 2010. Pro Forma Balance Sheet FY 2009 FY 2010 FY 2011 Assets Current Assets Cash 60,09,800 72,50,100 3,90,64,300 Accounts Receivable 1,47,300 3,11,400 Other Current Assets 0 0 0 Total Current Assets 61,57,100 75,61,500

11,67,800 4,02,32,100

Long-term Assets Long-term Assets 0 0 18,00,000 Accumulated Depreciation 79200 2,39,200 3,99,200 Total Long-term Assets -79200 -2,39,200 14,00,800 Total Assets 60,77,900 73,22,300 4,16,32,900 Liabilities and Capital FY 2009

FY 2010

Current Liabilities Accounts Payable 11,60,900 Current Borrowing 0 0 Other Current Liabilities Subtotal Current Liabilities

23,82,200 0 0 0 11,60,900

Long-term Liabilities 0 Total Liabilities 11,60,900

0 0 23,82,200

Paid-in Capital 65,00,000 65,00,000 Retained Earnings -29,50,000 -15,83,000 Earnings 13,67,000 23200 2,77,12,900 Total Capital 49,17,000 49,40,100 Total Liabilities and Capital 60,77,900 Net Worth

49,17,000

49,40,100

FY 2011

89,79,900 0 23,82,200

89,79,900

89,79,900 65,00,000 -15,59,900 3,26,53,100 73,22,300 4,16,32,900

3,26,53,100

BIBLIOGRAPHY:http://marketingpractice.blogspot.com/2007_01_01_archive.html PHILIPS KOTLER- MARKETING MANAGEMENT. WWW.CANDIES.COM WWW.KIDSCANDIES.COM