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BUSINESS AND MANAGEMENT
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ContentsIntroduction ................................................................................................................................ 3
Executive summery .................................................................................................................... 3
Mission statement ...................................................................................................................... 3
Historical background................................................................................................................. 4
Marketing ................................................................................................................................... 4
Target segment of market .......................................................................................................... 4
Competition ................................................................................................................................ 6
Financials ................................................................................................................................... 6
Introductory costs by Salsa Company ........................................................................................ 7
THE SALSA COMPANY - CASH FLOW PROJECTION FOR YEAR ENDING - FIRST
CALENDAR YEAR ..................................................................................................................... 8
Target audience ......................................................................................................................... 9
References ...............................................................................................................................10
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Introduction
Business model is concerned with a set of suppositions concerning with the illustration of how
the organization is able to perform in order to generate a value for all audiences on which it
relies. According to Magretta (2003) business model is also called the theory this is consistently
put in to practice in market place. According to Kagermann and Osterle (2006) business model
is illustrated by following points (Lechner and Muller Stewens, 2005)
Sales distribution channels, customers, products, goods as well as income attainment
framework for an organization
The underlying financial logic of an organization
The rank /level of an organization in its market place as well as in its association wih the
nature of business
This study is about the business plan for the salsa company and it is subsequently described.
Executive summery
This organization was started in order to present the finest quality of hot salsa as well as add
some value in its authenticity. That is usually filled by organic and grown components; the
customers that have the awareness about the salsa were seeking for the real salsa goods thatare filled by the worlds best components produced on domestic scale. Customers want to
purchase the fresh salsa rather than to buy canned or preserved salsa. Along with the
innovative products from the salsa company like mild salsa and hot salsa were offered in the
start. Some other varieties of salsas have also been decided to introduces that are more likely
to be more hot salsa, several special salsas amalgam with some domestic fruits toppings like
apples, blueberries as well as peaches.
Mission statement
Company has the aim to provide corn chips labeled by their own company name and taco
sauces. Company is consciously struggling for the domestic produced fruits with the organic
ones as well as the review of accessible markets to be targeted, making improvements on the
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accessible resources of products and services to the required dimensions that will make sure
their success among the customers demands within the selected target market.
Historical background
For most of the customers, salsa is becoming a loving condiment overhaul by ketchup. It is
mostly used with chips, snacks and hamburgers as well. In super markets, the canned variety of
salsa has ever been famous for several years. But recently it is introduced on fresh basis by
using organic components. So in this regard Salsa Company has the bigger chances to
dominate over the market by the increasing demands in fresh salsa. In 1991, exceeding limits of
ketchup in chips and salsa ware turned to be the persistent darling in united stat dollar volume.
In 2008, sales earned from salsa were $ 931 million that were 380 million jars in contrast to the
sales of ketchup $ 620 million by selling 670 million ketchup units. It is comparatively nutritious
and healthy so why it is famous. Hiller the CEO of South based Hillers market Inc. said that
they have occupied the 25 brands of salsa the entails domestic ingredients mostly. It is much
more than a normal food and turn to be a cultural icon. He also added; in practical markets there
is a demand of innovative salsa assortments made by different conceivable vegetables or fruits.
Market place intended for salsa is vigorous.
Marketing
Denison and McDonalds (1995) proposed that marketing department exists within any
organization may be suffered from poor image, incorporation as well as complacency when
marketing has permitted itself to be a sales assisted ability. Kashani (1996) proposed the idea
that marketing is the process that compels to change and transformation either the organization
tends to or not.
Target segment of market
In America, salsa has now turned out to be the most liking condiment. It is the surprising fact
and hence by the research of Symphony IRI group, in Chicago a market research analysis tell
that 396376 of mayo units were purchased by customers in 13 months in 2010 that create more
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than $1.258 billion in sales in contrast with 271,321,400 salsa units sold by $764,299, 800 and
256,891,600 by & $481,278,800. The top three trends that were made by National Restaurant
Association comprise 1) domestically produced meats 2) sustainability 3) domestically owned
grown generated. Almost every institution is seeking for the creative, accessible as well as cost
balanced ways to enhance the quantity of domestic, fresh products to be presented.
According to Mc Carthy, there should be analyzed the structure of marketing mix 4Ps that are
Product - - - - it entails with the purchasing of customer i.e., what the clients purchases
comprises of entire aspect of the single services or goods like their traits, design, frills,
abilities, fitting, warrantees, branding, packaging as well as trainings. In this case, the
company is providing the product in the form of salsa and its various assortments sa
well.
Price - - - - charges paid by customer in return to the product or service that entails with
discount, or pricing policies. Salsa Company is charging normal range of product of
salsas that are comparatively better than other salsa providers.
Promotion - - - - tell the modes of customers interactions such as all aspects of public
relations, sales promotions, advertising as well as personal selling.
Place - - - - it tells salsa companys distribution channels, logistics, location decision
making etc.
Surrounded area that is covered by Salsa Company entails Greendale, Oak Park, and Lakeville
and cedar valley and by the information of census 2010; it covered almost 35,600 of populace.
Present information reveals that an average of customers buys salsa tins about 2 to 3 weekly
from farmers market that makes the sales of $20 to $30 on one visits. Salsa was mostly
purchased by local grocery super stores or salsa made food products areas. So this will give the
salsa company to a broader market for selling products. Marketing comprise of advertisement in
newspaper, radio spots as well. Flyers were also designed by the executive marketing
managers to put up at society bulletin. Ongoing marketing comprises of newsletters makes
spotlight on salsa cooking as well as coupons, personal selling, contact making, social media
marketing, e marketing techniques are also used by salsa company.
According to Gummenson (2002) organizations have the product based set up are engrossed in
service marketing normally comprises of instructions, warrantees, installation as well as service
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back up. These aspects in service areas are sometimes significant for the selling of the products
(prospect goods) tend to be marginal by means of marketing mix process.
Competition
Salsa has consistency in order to grow itself with other salsa production companies. Only few
companies are proving the same services as Salsa Company is providing. Conventional type o
salsa such as Tostadas as well as Chi Chis are the strongest salsa production companies
those are providing high quality of canned salsa in market. Salsa produced by Newmans has
various flavors but these are also sold in cans. Only the deli company and few other companies
are providing fresh salsa comprises of dairy production. Some other competitors are observed
who are providing salsa with minimum processing but they does not used organic material. Only
one company is seen as producing salsa with domestic and organic components named as
Annie Maries salsa company.
Salsa Company has exclusive taste, flavor as well as quality of its products that make it different
from other competitors. Because of the use of organic fresh components, the products are
giving the best competitive lead over the competitors in the market place. Bright packaging,
brand name is the symbol of good quality salsa.
Financials
Pre assumptions of the basis of this study intended to illustrate the figures comprises of
Within the geographical limits $2602 households would bought in the duration of 1 year
Average sales of $25 per customers is by means of salsa company sales practice
In the duration of one year, Salsa Company has the purchased of $500 by selling rate of
$25 every week
There is an improvement noticed in the season of football and summers months tend to
purchase salsa for parties, get together and picnics as well
Higher sales will be noticed in the months of January and may since there are some
prepleys for what presents are bought.
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By the commencing of new specialty salsa stores, a huge raise in salsa products selling
is seen.
Introductory costs by Salsa Company
Marketing 800
Legitimate 80
Corporate insurance 250
Point of sales software cost 1000
Supplies by official level or storage 180
Inventory 35000
Rent deposits 1500
Barcode reader 180
Printer 159
Signatures 395
Shelves 7498
Computer 1200
Cash register 275
Total
Funding
Owner participation 13000
Bank lease or lender 39111
Aakars (1991) define a wider aspect of brand equity that is the set of all assets and liabilities
interconnected with the symbol and name which impact on the value of product or service
positively or negatively. Doyle (2000) proposed that when perspectives of financial aspect are
under taken, brand is seeking for the assets or liable resources in order to generate value which
escorts the brand equity.
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THE SALSA COMPANY - CASH FLOW PROJECTION FOR YEAR ENDING -
FIRST CALENDAR YEAR
STAR
T
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec TOTAL
S
% Sales
1 TOTALSALES 0 0 0 6,000 6,880 4,920 4,720 5,070 5,745 7,105 7,730 7,685 55,85
5
100.0
%
2 Merchandise sales 6,000 6,500 4,700 4,500 4,850 5,325 6,625 7,250 7,525 53,27
5
95.4%
3 Class Tuition 200 100 100 100 240 240 240 100 1,320 2.4%
4 Crop Fees 180 120 120 120 180 240 240 60 1,260 2.3%
5 TOTAL CASH IN FROM
SALES
0 0 0 6,000 6,880 4,920 4,720 5,070 5,745 7,105 7,730 7,685 55,85
5
100.0
%
6 CASH OUT FOR GOODS
7 Purchase for Inventory 35,000 2,861 3,100 2,241 2,146 2,313 2,839 3,775 3,774 3,589 61,638 110.4%
8 0 0.0%
9 TOTALCASHOUTFORGO
ODS
(35,00
0)
(2,861) (3,10
0)
(2,24
1)
(2,14
6)
(2,31
3)
(2,83
9)
(3,77
5)
(3,77
4)
(3,58
9)
(61,63
8)
-
110.4%
10 CASHOUTFOROPERATIO
NS
11 Rent 600 600 600 600 600 600 600 600 600 600 6,000 10.7%
12 Ins-General liability 250 60 60 60 60 60 60 60 60 60 790 1.4%
13 Telephone 80 80 80 80 80 80 80 80 80 720 1.3%
14 Advertising 750 80 80 80 100 100 100 135 135 135 1,695 3.0%
15 Store Supplies 175 35 35 35 35 35 35 35 35 35 490 0.9%
16 Office Supplies 995 50 50 50 50 50 50 90 90 90 1,565 2.8%
17 Postage 15 15 15 15 15 15 15 15 15 135 0.2%
18 Bank fees 5 5 5 5 5 5 5 5 5 45 0.1%
19 Legal & Accounting 75 75 0.1%
20 Training 2,476 2,476 4.4%
21 0 0.0%
22 TOTAL CASHOUT FOR
OPERATIONS
(5,321) (925) (925) (925) (945) (945) (945) (1,02
0)
(1,02
0)
(1,02
0)
(13,99
1)
-25.0%
23 NET CASH FROM
OPERATIONS
(40,32
1)
2,214 2,855 1,754 1,629 1,812 1,961 2,310 2,936 3,076 (19,77
4)
-35.4%
24 OTHERCASHIN
25 Loan proceeds - Micro
enterpris
e
loan(NE
F)
38,24
2
38,24
2
68.5
%
26 Owner contributions 12,500 12,500 22.4
%
28 TOTAL OTHER CASHIN 50,742 0 0 0 0 0 0 0 0 0 50,742 90.8%
29 OTHER CASHOUT
30 Closing costs 0 0.0%
31 P&I Debt Service 790 790 790 790 790 790 790 790 790 7,110 12.7%
32 Owner Draw 500 500 500 500 500 600 3,100 5.6%
33 Taxes Owner Draw 0 0.0%
34 Working Capital 600 600 1.1%
35 Equipment 9,821 60 60 60 60 60 60 60 60 60 10,361 18.5%
36 TOTAL OTHER CASHOUT (10,42
1)
(850) (850) (850) (1,35
0)
(1,35
0)
(1,35
0)
(1,35
0)
(1,35
0)
(1,45
0)
(21,17
1)
-37.9%
37 NET CHANGE IN CASH 1,364 2,005 904 279 462 611 960 1,586 1,626 9,797 17.5%
38 BEGINNING CASH 1 1 1 1 1 1,365 3,370 4,274 4,553 5,015 5,626 6,586 8,172 1 0.0
%
39 ENDING CASH BALANCE 1 1 1 1 1,365 3,370 4,274
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Target audience
Board of directors
Investors / lenders /vendors
Present work force
Contractors
Suppliers
Top management
Distributors
Customers etc
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References
Aaker, D.A. (1991) Managing Brand Equity: Capitalizing on the Value of a Brand Name .New York: Free Press.
Aaker, D.A. (1996) Building Strong Brands. New York: Free Press.
Denison, T. and McDonald, M. (1995) The Role of Marketing Past, Present and Future,
Journal of Marketing Practice: Applied Marketing Science, 1(1), 5476.
Doyle, P. (1995) Marketing in the New Millennium, European Journal of Marketing, 29,
2341.
Doyle, P. (2000) Value-Based Marketing, Journal of Strategic Marketing8(4): 299311.
Gummesson, E. (1987) The New MarketingDeveloping Long Term InteractiveRelationships,
Gummesson, E. (2002) Total Relationship Marketing. Rethinking Marketing
Management: From 4Ps to 30Rs, Butterworth Heinemann, Oxford.
Kagermann, H. and H. sterle (2006). Geschftsmodelle 2010 - Wie CEOs
Unternehmen transformieren. Frankfurter Allgemeine Buch.
Kotler, P. (1967) Marketing Management: Analysis, planning, implementation and
control, Prentice Hall, New Jersey.
Long Range Planning, 20(4), 1020.
Magretta, J. (2003). What management is - How it works and why it's everyone's
business. Pro_le Books.
McCarthy, E. J. (1960) Basic Marketing: A Managerial Approach, Richard D. Irwin,
Homewood, IL.
Mller-Stewens, G. and C. Lechner (2005). Strategisches Management Wie
strategische Initiativen zum Wandel fhren. Sch_er-Pschel.