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Executive Summary

Our main idea is to come up with a brand of chocolate like no other which does not offer the
conventional chocolates and varieties like the other chocolate makers but offer the consumers
a chocolate experience unparalleled. We want the consumers to experience the quintessential
and finest taste in chocolate without the worry of emptying ones wallet.

The unique characteristic of our chocolate is that the different types of our chocolate will be
able to cure different diseases. For example a particular variant of chocolate can cure
diarrhoea, while another can help in digestion, fever etc. Our chocolate does all this without
any sacrifice in flavour and with the authentic taste of true chocolate.

The name of our chocolate brand will be Xtasy which will give an ecstatic experience to the
consumers and which we feel, customers can easily associate with.

Our target market is the state of Karnataka. On further expansion and successful
implementation of our product we will expand to other markets outside like Kerala and Tamil
Nadu.

We would like to target the consumers of all age groups. We will be selling five different
types of chocolates-

a) Xtasy Premium Chocolates (Gold in colour for curing fever)


b) Xtasy Premium Chocolate (Green in colour for curing diarrhoea)
c) Xtasy Premium Chocolate (Red in colour for curing digestion problems)
d) Xtasy Premium Chocolate (Blue in colour for curing cold)
e) Xtasy Premium Chocolate (Black in colour for curing cough)

The location of our manufacturing unit will be in Mandya as the area and the labour force is
cheap as well as that there is ample of raw materials to be found there. We will be selling to
wholesalers and retailers to maximize our sales and we will do ample marketing as our
budget allows us.

Our budget currently sits at 1 crore which is small for a chocolate company understandably
but will further expand on profitisation.

The core competencies on which our company would be competing are taste and quality of
our chocolates.

Our company would be a partnership firm of 3 partners- Rahul Roy, Ajay Krishnan and
Lasim Fasal.

There would be 2 finance managers, 2 marketing managers, 1 general manager and 50


labourers as part of our initial workforce.
Introduction

Xtasy Chocolates Pvt Ltd is small scale business which will introduce its products in the state
of Karnataka, distributing the chocolates in the prime areas and on further profitization as
well as growth and expansion will expand to other South Indian regions and our main goal is
to be a market leader in the Indian segment.

We have selected the chocolate industry because though the market is crowded with big
players like Cadbury and Nestle as well as new players like Gone Mad and Melts, we
genuinely feel that we offer something new to the consumers that they have never before seen
and could genuinely offer a satisfactory experience and be beneficial to their health as well.

The entrepreneurs who are involved in the formation of this company are Rahul Roy, Lasim
Fasal and Ajay Krishnan, students of Christ who hope to make the world a better place
through chocolate and to make a breakthrough in the field of chocolate making.

All the partners hold equal stake in the ownership of the business at 33.3%. All the profits
and losses are shared equally and the capital is also invested equally by all the partners. All
are active partners who actively take part in the running of the business.

Our initial investment is around 1 crore with 33.3 lakhs invested by all the partners and the
investment figures might fluctuate based on the upcoming sales and profitability of the
products. We hope to make a profitable turnover of 1.25 crores by the end of the accounting
period.
MARKET SURVEY
Feasibility of the project

Xtasy chocolates is the latest chocolate business in India at the moment , Xtasy chocolates
is a high quality chocolate with lower cost compared to any other chocolate companies in
India . Xtasy use more natural products than any other chocolates in the country . The USP
of xtasy chocolates is that it cures diseases , different types of chocolate for different
diseases , it is a new idea in the world which can cure diseases like ,diaria , fever , cough ,
cold , digestion problems etc , the product is feasible because it is the only product with
this features and the taste of the chocolates does not change

SWOT ANALYSIS
Swot analysis is an analysis which a company use to find their strength weakness ,
opportunity and threats

Swot analysis of Xtasy are as follows

Strength

one of the new brand in INDIA which provides chocolates with cheap cost and high
quality
more demand in Bangalore
customer satisfaction is at the peek
more use of natural materials
only chocolate to cure diseases
best substitute for medicines
less competition because xtasy is the only chocolates which cure diseases

weakness

less advertisement at present


less capital
less familiarity in the market
limited shelf life
new idea which is unfamiliar with most of the people can lead to less support
number of people in target market are less because xtasy chocolates are opted
mainly by person who have some kind of disease

opportunities
untapped rural areas
Customers wants to try new chocolates
Kids are one of the main members in the target market , as they are not a big
fan of medicines , and xtasy chocolates can be a substitutes for

Threats

more number of chocolate brands in India


more number of sweets are used mainly by elders as a substitute
Difficult to shift elderly people to use chocolates as a substitute for
medicine

The present and future scenario of sector

the present scenario in the chocolate industry is that the size of the number of chocolates
produced in India are 30000 tonnes , main distribution are done by , Mumbai , Bangalore ,
Kolkata and delhi , Cadbury has over 70 percent market shares , xtasy chocolate exist in
chocolate industry and well as medicine industry , over past few years we could see an
increase of price in raw materials for chocolate production , in the future India chocolate
industry is expected to grow by 19 percentage at present xtasy chocolate is present only at
Bangalore , but in the future we hope to expand our market to all over and India and slowly
to all over the world

competitor
competitions are the main factors which can decrease the profitability of a product

for Xtasy chocolates competitors are both from chocolate industries as well and medical
industry

Cadbury

One of the biggest chocolate industry in the world established in 1824 in England

Vicks

it is an American medical company established in 1985 , it proves to be one of the biggest


competitor to extasy chocolates , it is coming under medical industry

amul
established in 1945 in INDIA , one of the biggest chocolate industry in India , formed by
cooperative society

strepsils

founded in 1852 , a product which cures throat diseases , part of the medical industry

mars

founded in 1911 , big competition for xtasy chocolate in international market

nestle

founded in 1860 , offers product like Tic-tac , kinder joy etc

Itc

founded in 2002 , offers products like candyman

parle

founded in 1929 , offers product like melody

challenges
Challenges are barriers which a company should overcome in order to gain a competitive
advantage

Challenges which are likely to be faced by xtasy chocolates will be

1. Very competitive market - chocolate industry is a very competitive industry , to be


successful in this industry , any industry should a unique marketing strategy , main
competitions for xtasy chocolate are , nestle ,Cadbury , Itc , mars etc
2. Coca price - another challenge which will be faced by xtasy chocolate will be the
variation of prices in coco , coco prices tends to change always on the basis of
various factors , such as aging crops , disease , political unrest , this change in
price can impact supply chain
3. Health factors - one of the main reason people tends to not buy chocolate are health
issue , due to increase amount of fat in chocolates , but in xtasy chocolate it cures
diseases , health is not going to be affected in xtasy chocolates
4. Channel of distribution - process of making a chocolate is a big process , it
requires collection of materials from different places , this will also be a challenge for
xtasy chocolates , if one channel fails it is going to affect the entire business
5. Sustainability - sustainability is one of the biggest issues or challenges which will
be faced by any chocolate Industry , coco harvesting is a time consuming process
which takes around one year to harvest
6. Finance - since xtasy chocolate is a new industry finance is limited
7. Lack of familiarity in the market - people are less familiar with xtasy chocolate
which will be a challenge for them

Worst case scenario and contingencies

Worst case scenario which could happen to xtasy chocolate will be lack of profitability , since
it is a new idea some times people wont accept it this can reduce profitability , sometimes
we could not get into the foreign market

Target market
Target market can be where the market is divided into separate segments called as
segmentation, where the company focuses on the segment most appropriate for it
The beauty of target marketing is that by aiming your marketing efforts at specific groups of
consumers it makes the promotion, pricing, and distribution of your products and/or services
easier and more cost-effective.

It provides a focus to all of your marketing activities.

Xtasy chocolates target market is within Karnataka and we are currently planning to extend it
to Chennai, kochi, Hyderabad the target market includes all patients of all ages especially
children as they love chocolates and it would much easier for them to have it. The target
market also includes Sick immune people who find it tough takin in medicines continuously
after every meal rather they can enjoy a small piece of chocolate after every meal

Product
Xtasy chocolates is owned by three entrepreneur Rahul Roy , Ajay Krishnan and Lasim
fasal.The main office of Xtasy chocolates is situated in Bangalore in sarjapura and our
production unit in mandya .

Our chocolate Xtasy chocolate are chocolates that can be substitute for minor diseases such
as fever cold, cough diarrhoea and digestive problems

It consists of different types of chocolate and of of different sizes

Price
Deciding for for a medicine is very critical as medicines are an essential product

Xtasy chocolates has very convenient prices for its products

Xtasy chocolates has a price range of Rs 50 to 150

Place
Xtasy chocolates production unit is situated in mandya an the main office in Bangalore in
sarjapur

After the production and all the quality check it is transported from mandya to sarjapur in
Bangalore
Promotion
Xtasy chocolate is a new product possibly first of its king

For the customers to come to know about the product it is necessary to for us to promote it to
our maximum potential

Since our company is a small company we have decided to promote the company by placing
attractive posers around the medical shops

And we have an affiliation with paytm so we would give different offers via pay tm

In the latter stage of the company growing we will make start creating advertisements

Michael porters 5 force analysis

Product line
Companies create product lines as a marketing strategy to capture sales of consumers already
buying the brand. The operating principle is that consumers are more likely to respond
positively to brands they know and love and are willing to buy the new products based on
their positive experiences with the brand. Product lines can vary in color, size, quality and
price. Companies use product lines to gauge trends, which helps them determine which
markets to target.

Xtasy chocolates have they products in different types and sizes

We have chocolates ranging from bar chocolates to single wrapped chocolates

We have white chocolates dark chocolates milk chocolates to suit the consumer taste and
preferences

USP of the product


An Xtasy chocolate a day keeps the doctor away

STP
Segmentation
The segmenting step is essentially a brainstorming activity. You list out all the potential
market segments you could target in a marketing campaign. Xtasy chocolates segmented the
population of Karnataka

Targeting
When you have multiple, distinct market segments, you typically need to customize
marketing campaigns that appeal to each. As you go through the STP process, you select
which segment to target with your upcoming campaign. Xtasy chocolates targets people of all
ages, especially people who have difficulty having medicines

Positioning
Positioning is how you align your brand or products in the target market. The goal is to offer
something that is bigger, better or more valuable than your competitors to a particular market
segment. For example,

Xtasy uses advertisements such as poster and other promotional strategy to create a target
image in the customer

Financial Plan
Initial Investment

Initial investment is the amount required to start a business or a project. Initially we are
looking at an investment of around 1 crore, which is understably small, but we look to
progress further in the future with successful sales. We have carefully estimated all the
expenses and considering our capital restrictions we believe its the best investment possible
which can achieve our short term goals. The initial investment will be more concentrated on
the building of the factory, acquiring of raw materials, and the distribution of the product.

Sources of Funds

The funds for the initial investment will be partly be borne by the three partners and the rest
will be covered by a bank loan. As stated earlier we do not have the financial power to
catapult us directly into the mix of the pile. Therefore we are starting small. Lasim, Ajay and
I are investing an approximate of 20 lakh rupees each and we are then taking a bank loan of
40 lakh rupees . The bank from which we are taking a loan from is Bajaj Finance Corporation
which we have selected as they are able to provide us this large sum of money for an interest
rate lesser than other companies. The rate of interest is 14% which we will pay back in a
quarter yearly basis for 5 years. It also has a minimal processing fee of 2% which will also be
accounted for. The remaining 60 lakh rupees are coming from our own pockets.

Depreciation

Business purchases often come with high price tags attached, but many of them are
investments that will be used in the company for years to come. Depreciation is a system that
allows deduction to the cost of a high ticket business item over the time one uses it, rather
than deducting the cost of the asset in a single hit.

Businesses depreciate for both tax and accounting purposes tax depreciation is set by law,
while accounting depreciation tries to faithfully match the cost of an asset over its life.
During each accounting period, a portion of the cost of each depreciable asset is allocated,
and that portion gets reported as a depreciation expense on our businesss income statement.
Buildings, machinery, computers, equipment, furniture, and vehicles are all examples of
items that are depreciated. These items would be depreciated because they all have a
relatively long useful life, compared to things like office supplies, for example, that have a
short useful life (under one year).
The cost of items with a short useful life are deducted up front. Expensing these costs up
front is more attractive because of the quicker tax benefit. But for those longer term
investments with a higher price and long useful life, youll be required to depreciate the cost.
This is how we plan to manage the depreciation of the different items of our organization.
Profit and Loss Statement
Profit and Loss Statement for the year ending 2020
Sl. No Particulars Amount
1. Sales Revenue
3,00,00,000
2. Less: Cost of Sales
2,00,00,000
Gross Profit
1,00,00,000
Less: Other expenses/ Other costs
30,00,000
Net Profit before tax and interest
70,00,000
3. Add: Non Trading Income
10,00,000
Net Profit with extra income before interest and tax
80,00,000
4. Less: Interest
20,00,000

60,00,000
5. Less: Tax
10,00,000
Profit for the three years
50,00,000

Balance Sheet
Balance Sheet of the company for the year ending 2020
Sl, No Particulars Amount
LIABILITIES
1. Shareholders Fund
Share Capital

2. Non- current liabilities


Long term borrowing (Loan)

3. Current Liabilities

TOTAL

ASSETS
1, Non Current Assets

2. Current Assets

TOTAL

Break Even Analysis

Break-even analysis is of vital importance in determining the practical application of cost


functions. It is a function of three factors, i.e. sales volume, cost and profit. It aims at
classifying the dynamic relationship existing between total cost and sale volume of a
company.

Break even point refers to the point at which the organisation reclaims the capital that they
had initially invested in the establishment of the company. It is widely regarded that after they
achieve this point is when they truly start earning profits .

Our organization aims at achieving the breakeven point by 6 years. Though it is longer than
some companies, our investments and expenses are substantiated and from then on we aim to
go large scale. With a steady flow of income and profit, and increased demand and favourable
selling environment, the earliest we hope for is 5 years.

Payback Period
Payback period in capital budgeting refers to the period of time required to recoup the funds
expended in an investment, or to reach the break-even point. As stated earlier, the break even
point which our company projects is 6 years with standard business sales and a possible 5
years with remarkable market conditions.

Conclusion

Xstasy Pvt Ltd aims to be one of the largest chocolate distributors in the country by the next
decade. Though the road ahead is not smooth and we will face obstacles at every turn, we
believe we have truly what it takes to make it all the way. We have the resources, the finance
and the ideas as well as the passion to really make it count. We will start small but will
rapidly spread our business to a larger proportion of the country and finally the whole country
as well. After we reach our breakeven point and complete our payback period, we will
concentrate on the marketing of our product which was not concentrated upon very much
before. We will expand our base and our offices as well as our factories and innovate our
products in the best possible manner. We are Xtasy Chocolates and your ecstasy is our policy.