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Business Proposal

Paki Mangos Pty. LTD

Submitted to: David Rich and Dr. Tom

Submitted by:

Zeeshan Abdul 11300055

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Table of Contents

Introduction.........................................................................................................................................4

Sindhari.................................................................................................................................................5

Chaunsa.................................................................................................................................................6

Critical Risk analysis:.............................................................................................................................6

Market Analysis:...................................................................................................................................7

Competition:.........................................................................................................................................7

Distribution...........................................................................................................................................8

Sales Promotions..................................................................................................................................8

Target Market (Marketing Mix):...........................................................................................................8

Facebook Page......................................................................................................................................9

Opposite weather of both Countries....................................................................................................9

Mango Party........................................................................................................................................10

Packaging............................................................................................................................................10

Financial Plan.......................................................................................................................................10

Start Up Budget...................................................................................................................................10

START-UP EXPENCES...........................................................................................................................10

Cost of Mangoes:................................................................................................................................11

Income Statement..............................................................................................................................12

Profit and Loss Account.......................................................................................................................12

Conclusion...........................................................................................................................................13

References..........................................................................................................................................14

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Paki Mangoes

Introduction‘‘Pakistan’s total mango production reaches 1.7 to 1.8 million tons annually with the lion’s share coming from Punjab and 30 percent from Sindh. According to 2011-12 statistics of the Sindh Horticulture Research Institute (SHRI), Mirpurkhas is considered home to mango farming, although it takes place in Tando Allahyar and Sanghar as well.

“According to previous surveys, Pakistan is the 5th largest producer and 3rd largest exporter of mangoes. Pakistani mangoes enjoy a prominent position in the international market due to its taste, popularity and demand. They are spotless and clean by appearance, free from insect damage or fungal infection and uniform in size and ripeness. Pakistani Mango best in the world.’’ (http://www.dawn.com/news/1014713)

The good news is that Pakistani mangoes have no rival in the global market in terms of quality, sweetness, rich taste, distinct flavor, naturally woven fibers, pleasant aroma and the softness of its contents. These unique qualities of Pakistani mangoes are inherited from a fine mix of unique soil and season coupled with impact of flowing rivers through the world’s largest canal irrigation system that is literally the life-blood of the country’s agriculture.”

We will proud to be the FIRST commercial importer of Pakistani mangoes in Australia.

“King of Fruits”, mango is one of the most popular and best-loved fruits worldwide. Hundreds of varieties of mangoes are known to exist in Pakistan.

Being an Australian Company, It is important to note that we respect our local growers and therefore will not be supplying our product during the Australian Mango season, as the supplies would only be during the period from May to August every year.

Mission

Our mission to bring and provide mangoes to mango lovers in a season where there will be no mangoes season in these specific months as Australian Summer Season (Mango Season) is from December to February march. We will fill this gape buy putting our Pakistani sweet mangoes in the market.

DAFF Approval:

Pakistani mangoes will soon be stocked in Australian supermarkets and fruit stores following approval from the Australian Department of Agriculture and Forestry (DAFF).

Australian department of Agriculture and Forestry (DAFF) approved that importers can Import Pakistani mangoes from now on. Ahmad Jawad CEO of Pakistani exporting company, Harvest Trading said that the approval has come after a long and sustained effort by Pakistani mango exporters and government officials.

Although Australia is a major mango producing country, the Nation’s season does not commence until November/ December.  The importation of Pakistani mangoes would allow Australian to have access to the summer fruit.

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Our Products:

following are the varieties with time frame in descending order

Variety Season

1 Sindhari mid May to end of june2 Dosehri June to early july

Mausmi Chaunsa June to mid-august

3 Black Chaunsa mid-august to end of September4 Anwer Ratol July to mid-august

5 White Chaunsa September to end of November

SindhariMango is the king of all fruits and Sindhri is the KING of the KINGS.They are a generous size and sweet but not sickeningly, so you can have more than one, unlike any of its more sugary counterparts. Other mangoes may be more sugary but none is sweeter than the Sindhri.

Season: Mid-May to mid-JulyOrigin: Mir Pur KhasColour: GoldPulp Gravity: MediumFlavour: Slight PerfumeFiber: 3 - 5%Sugarege: 15 - 18%Moisture Content (average): 79% after ripening; 18% before ripeningWeight: Average 1 - 3.5 pounds

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Relative Humidity: 85%

ChaunsaOn BBC Food Buyers Guide

“Chaunsa (June to August), from Pakistan, has a thin yellow skin streaked with green and the sweetest of sweet, smooth-textured flesh. It is sometimes called Honey.”

Flesh firm, fibreless with pleasant flavour and sweet taste. Juice moderately adundant. Fruit quality good, keeping good quality. Ripening season in August.

Season: July - SeptemberOrigin: Rahim Yar Khan & MultanColour: GoldFlavour: Slight perfumeFiber: 17.2 - 27.3%Sugarege: 18 - 22%Pulp Gravity: Heavy

Moisture Content: 78% after ripening; 81% before ripeningWeight: 1-2.3 PoundsRelative Humidity: 85%

Critical Risk analysis:Major problems during the import process to Australia will be logistic tariffs which may push overall cost of the fruit as we have $100,000 only and need to get 300,000 more from the bank. Currently there are no direct flights to Australia from Pakistan and this results in enhanced cargo rates for the export material,

So far as quarantine issues concerned Pakistani plant protection department signed protocols with various countries under which hot water treatment of mangoes is required to kill the fruit

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fly and to meet the export standards. Hot water treatment is required for japan and Australia. Hot water treatment is available in Lahore and Karachi.

One must be vigilant regarding standards of packaging and the availability of air space as the mangoes cannot be transported in reefers.

Market Analysis: On the world scale, the Australian mango industry is relatively insignificant. However, production has increased over the past decade and it is forecast that domestic production will double within ten years, making it one of the major domestic horticultural crops (AAG 2006). Mangoes grow best in climates which have low rainfall and low relative humidity at flowering, fruit setting and harvesting and that are warm to hot during fruiting. However, mangoes will tolerate a wide range of climates from warm temperate to tropical. With these climate requirements, mangoes are grown predominately in northern Australia.

Queensland is the major producing state, accounting for 70% of domestic production, by volume. The Northern Territory is also a major mango producer accounting for 20% of production. The remaining production areas are in Western Australia and northern New South Wales (AAG 2006). The growing season in Australia stretches from mid spring to autumn with flowering from June to August and peak production occurring during December and January. Currently around 90% of the trees grown commercially in Australia are Kensington Pride with the other established varieties including Irwin, Nam Dok Mai, R2E2, Glenn, Kent, Tommy Atkins and Palmer. A new variety of mango called Calypso is also starting to be produced and is reaching the market, albeit in small volumes at this stage. The world trade in mangoes is limited with the vast majority of mangoes consumed domestically. The total fruit exported in 2004 internationally represented only 4.3% of world production (AAG 2006). Australia relies predominately on domestic production to meet domestic demand. During 2004 only 2,430 tonnes were exported and 3,850 tonnes were imported, making Australia a net importer of mangoes in that year.

Competition:As there are no availability of mangoes during winter in Australia so we will be the only seller of mangoes which will be a great opportunity for us to introduce our Mangoes in Australian Market. We will be the first Pakistani Mangoes importer in Australia as there were a lot of legal requirements but now Australian Government allowed to import Pakistani Mangoes in Australian market.

DistributionTruck driver will load the truck/van to distribute in grocery shops, fruit shops, hotels and restaurants in different areas. List of all shops and spots will be given to salesperson who will deliver mangoes in spots and collect money by EFT or by Cash.

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Sales PromotionsSales promotion relates to short term incentives or activities that encourage the purchase or sale of a product or service. Sales promotion activities can be targeted toward final buyers (consumer promotions), business customers (business promotions), retailers and wholesalers (trade promotions) and members of the sales force (sales force promotions). Here are some typical sales promotion activities.

Point of Sale display material

On-pack offers, multi-packs and bonuses

Commissions for salesperson

Sales competitions with prizes or awards

Advertisement on Internet e.g. Facebook or website.

Target Market (Marketing Mix): Marketing is a business function that identifies consumer needs, determines target markets and applies products and services to serve these markets. It also involves promoting such products and services within the marketplace.

Marketing is integral to the success of a business, large or small, with its primary focus on quality, consumer value and customer satisfaction. A strategy commonly utilised is the "Marketing Mix". This tool is made up of four variables known as the "Four P's" of marketing. The marketing mix blends these variables together to produce the results it wants to achieve in its specific target market.

The following describes the four P's of marketing:

Products are the goods and services that your business provides for sale to your target market. When developing a product you should consider quality, design, features, packaging, customer service and any subsequent after-sales service. We will provide quality mangoes with great packaging which will be

A well-defined target market is the first element to a marketing strategy. As we know there is a huge Pakistani and Indian community who always love to use their traditional foods. There are a lot of Indian, Pakistani and Afghani grocery and fruit shops in different suburban areas of NSW and other parts of the country. Initially we will target two markets:

Grocery shops

Fruit and vegetables shops

Restaurants and hotels

Online through website

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Facebook PageAccording to a website search there are 101 Indian 30 Pakistani hotels and restaurants in Sydney only whereas a lot of in other parts of the country. We can start with these restaurants and hotels, grocery shops and fruit and vegetables shops. Almost every Pakistani and Indian went out for dinner every weekend or fortnightly went out for dinner and for grocery shopping. These people will be our main customers who will buy mangoes from restaurants after dinner and with the grocery shops as well.

Opposite weather of both Countries

As there is opposite weather of Pakistan and Australia so we will take advantage of this difference. Here is the weather changes in Australia

In Australia, the seasons are defined by grouping the calendar months in the following way:

Spring - the three transition months September, October and November.

Summer - the three hottest months December, January and February.

Autumn - the transition months March, April and May.

Winter - the three coldest months June, July and August.

Whereas in its totally different in Pakistan

Spring: April to May

Summer: June to Sep

Autumn: Oct to Nov

Winter: Dec to March

Australia and Pakistan Mangoes availability in different Seasons

Season Name Australia Pakistan

SpringSeptember, October and November

April, May

Summer December, January and February

June, July, August and September

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Autumn March, April and May October, November

Winter June, July and August December, January, February and March

In winters in Australia, there are no any available alternatives of mangoes so this is the best time to get in touch with the customers to introduce fresh sweet mangoes for the Australian people. Mango lovers will also try an out season fruit and this is the best opportunity for us to make our permanent customers.

Mango PartyMango parties are a special event and a source of enjoyment in summer. Everyone can have these mango parties. Families can enjoy these parties with relatives and youngsters can have it with their friends and can have a great quality fun with the king of foods. Even children can have and enjoy and organize these parties at their school level.

PackagingAs mangoes will come in a container and after delivery in Australia we will make gift boxes for the families and friends who will exchange mango gifts with each other which will individually cushioned and packed in an attractive gift box.

Financial PlanIf we talk about our financial planning, we already have $100,000 in cash and we need $300,000 to implement our business plan through a smooth way. Here are some estimated costs, expenses and sale:

Start Up Budget

START-UP EXPENCES Expense Category Amount

Hot Water Treatment $6,000

Inventory (Mangoes) 142,000

Advertisement 4,000

Shipping Insurance 3,000

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Warehouse Rent 7,000

Packaging 35,00

Labour 8,000

Shipment charges and other costs 120,000

Truck 20,000

Cash 86,000

Total 399,500

Cost of Mangoes:

1 Type of Expense per 40 kg In Dollars

2 Mangoes $16

3 Packaging $2

4 Labour $2

5 Hot Water Treatment $3.5

Total cost on per 40 kg $23.50

Total Cost of 66,000kg 38,775

Other charges & fixed costs

Freight Charges

7 Shipment Cost (Fixed Cost) $250 per shipment

8 Shipment charges and other costs $2,000

Freight and Unloading $120

Total $2,370

Total Cost of 60 Boxes (1100kg/box) 142,200

Cost of 66,000kg mangoes: $38,775

Other charges: $142,200

Total Cost: $180,975

Cost per kg: $2.74

Price for shop keepers: $4.50

Retail Price per kg $5.50

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We will arrange 13,200kg mangoes in one month which will be only for start. After that we will order as per our sale which will increase in every month.

Income Statement

Paki Mangoes Pty. Ltd

Income Statement

For the five months ended October 30, 2015

Total Revenue: $297,000

Expenses & losses $180,975

Income: $116,025

Profit and Loss Account

Sales $375,000Less: Gross Profit $116000Less: Operating Expenses $180,000Operating Profit $129,000Less: Interest and taxes $16,000Profit after Tax $63,000

Need a small truck which will painted with Paki mangoes in yellow colour.

Cost of the truck will be around $20,000 which will be a non-current asset for the company.

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ConclusionAs per our future predictions and financials, company will be in a great position after five months business. This will be a big change in Australian fruit Market. With this, Indian, Pakistani and Afghani shopkeepers and hotel owners will get a great market as well. A shopkeeper or hotel who will have Paki Mangoes will get a unique identification in the market. Paki Mangoes will increase its sale within 2 years and spread Paki Mangoes in all over the Australia which can be a largest Mangoes importer Company in Australia from Pakistan.

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ReferencesAustralian Mangoes. 2015. Australian Varieties . [ONLINE] Available at: http://www.mangoes.net.au/homegrown/varieties.aspx. [Accessed 03 February 15].

Australian Mangoes. 2015. Australian Varieties . [ONLINE] Available at: http://www.mangoes.net.au/homegrown/varieties.aspx. [Accessed 03 February 15].

SmallBiZZ Connect . 2015. The Four P's of Marketing. [ONLINE] Available at: http://toolkit.smallbiz.nsw.gov.au/part/3/12/56. [Accessed 03 February 15].

Buy Pakistani Mangoes. 2015. Mangoes can be used as. [ONLINE] Available at: http://buypakistanimangoes.com/All-about-Pakistani-Mangoes/How-Mangoes-can-be-used.html. [Accessed 03 February 15].

Rayma.com. 2015. about Chaunsa mango. [ONLINE] Available at: http://rayma.com.my/pakistanmangoes/chaunsa.html. [Accessed 04 February 15].

Rayma.com. 2015. about SINDHRI mango. [ONLINE] Available at: http://rayma.com.my/pakistanmangoes/sindhri.html. [Accessed 04 February 15].