MGT 6093 Entrepreneurship: Fresh and Fit Business Plan Project

This document presents a comprehensive business plan for "Fresh and Fit," a fruit juice company in Malaysia, targeting health-conscious individuals and students. The plan details the company's mission, vision, and objectives, focusing on providing healthy and delicious smoothies using locally sourced and imported fruits. It includes an industry analysis, market analysis, marketing plan, and sales strategy, along with the management team structure and long-term development plans. Financial projections, including start-up costs, sales projections, cash flow projections, and projected financial statements, are provided to assess the business's viability and potential for growth. The business aims to contribute to society by promoting healthy eating habits and creating employment opportunities. Desklib provides access to this document and similar resources for students.

Running head: ENTREPRENEURSHIP PRACTICE AND PROCESS
Entrepreneurship- Practice and Processes
Name of the Student
Name of the University
Authors Note
Course ID

1ENTREPRENEURSHIP PRACTICE AND PROCESS
Table of Contents
Section A:...................................................................................................................................2
Executive Summary:..................................................................................................................2
Product Description:...................................................................................................................3
Business objectives:...................................................................................................................4
Mission Statement:.....................................................................................................................5
Vision statement:........................................................................................................................5
Company Description: 500........................................................................................................6
Business Overview:....................................................................................................................6
Industry Analysis:......................................................................................................................7
Market Analysis:......................................................................................................................11
Section B:.................................................................................................................................15
Marketing Plan and Sales Strategy:.........................................................................................15
Management Team and Organizational Structure:..................................................................17
Long-Term Development Plan:................................................................................................20
Financial Projections:...............................................................................................................23
Projected Financial Statements:...............................................................................................24
Start-up Cost:...........................................................................................................................24
Sales Projection:.......................................................................................................................25
Cash Flow Projections:............................................................................................................27
Projected Profit and Loss Account:..........................................................................................28

2ENTREPRENEURSHIP PRACTICE AND PROCESS
Projected Statement of Financial Position:..............................................................................29
Reference List:.........................................................................................................................31
Appendix:.................................................................................................................................36
Depreciation Schedule:............................................................................................................36
Ratios:......................................................................................................................................36

3ENTREPRENEURSHIP PRACTICE AND PROCESS
Section A:
Executive Summary:
Fresh and Fit is the vision of the new entrepreneur. The business aimed at making a
contribution to the society by assisting the youth to improve their health with the provision of
healthy fruit drinks. Instantaneously, the business beside making fruit juice will also create
the employment opportunities for the graduates passing out in July. The business will be
using the local fruits from the producers and will be importing fresh cultivated fruits to use
constructively in the business process. Providing smooth juice to the consumers will help
gaining wider market share. The company will be naturally using fresh fruits to manufacture
juices and will be looking forward to expand its operations in order to include the distribution
among stores within the entire stores. Owner funding and internally derived cash flow will
enable the business in future expansion. Additionally, the company will be securing a short
term loan with the help of bank in order to fund the business operations. The sales projection
for the three years will be based on the current market demand with target customer base in
Malaysian market. All the business strategies that are developed will be ranked in respect of
the net present value.

4ENTREPRENEURSHIP PRACTICE AND PROCESS
Product Description:
While there is lunch program available in all the government school several students
do not makes the use of food provided to them. The school food menu is restricted to
sandwiches which includes meat products. Additionally, it is noticed that most the students
turn to vendor that come to school premises to provide fried food. These vendors provide
school students with the fried food, soda and candy though children enjoy having processed
foods but these foods contribute to the obesity.
Findings from the Health Promotion unit of Ministry of Health have expressed their
concern regarding the growing number of obesity (Finch 2016). Similarly, the Fresh and Fit
products will be made from the local fruits that will be free of additives and artificial
preservatives. There would be no need of adding preservatives and additional sugar since the
fruits will be containing the natural sugars. Fruits that are available during the particular
season will be harvested and will be processed into the fresh fruits (McKeever 2016). A
portion of the fruits will be used while the remaining portion will be either dried or frozen in
to the deep freezer for use in off season.
Figure 1: Figure reflecting fruit and fruit juices
(Source: As Created by Author)

5ENTREPRENEURSHIP PRACTICE AND PROCESS
Fresh and fruit will be opening its stores for selling the fruit smoothies that will be
made from the combination of numerous fruits and coconut water with ice lollies that will be
made from the two types of fruit bowls. These includes the variety of sliced and diced fruits
and single fruit sliced and diced made from the local fruit.
With growth of business other products will be introduced and wherever necessary the
business will be using the natural sugars;
a. Jams and jellies by making use of the seasonal fruits
b. Chutneys from the mammy apple
c. Gooseberry and golden apple juice
d. Yogurt and ice-cream using local fruits
e. Trail mix that will be made from the locally grown nuts and dry fruit juice
The product will be categorized under the two heads namely under the Relax Fit such as
for those that do yoga and for children that prefer doing stretches. The stress involved in
studying will be released through such drinks (Brinckmann and Kim 2015). On the other
hand, Sporty Fit will be for individuals that join sports team and club that actively
participates in daily life, lawn tennis, table tennis, football and other sports will be the options
of attracting the consumers from each quarter.
Business objectives:
The business strategy of Fresh and Fruit is to sell the premium products at the valued
prices. compared to other local competitors the prices of the product will be set at a relatively
lower level to attract the positive attention from the local consumers (Schaper et al. 2014).
There are excess supply of food and beverage retailers in Malaysia with Fresh and Fit value
pricing strategy would make sure that strong smoothie demand is maintained among the
targeted customers.

6ENTREPRENEURSHIP PRACTICE AND PROCESS
Customers are usually reliant on the quality of fruit juice products. The objective of
Fresh and Fit is to remain committed to the highest standard in order to maintain the
foundation of trust in Fresh and Fit fruit juice. Delivering freshly made juices to the
consumers is depended on the extensive cooperation with mutual reliance among the
suppliers and retailer (Gabler et al. 2017). The objective of the business is to create
innovative product with state of the art manufacturing, quality assurance and industry
expertise for the future success of the business.
Mission Statement:
Fresh and Fit will be having the primary business responsibilities with the local
customers to whom the busyness will be offering delicious and healthy smoothies that would
help in epitomizing the true refreshment. Additionally, the business will be placing emphasis
on the employee satisfaction by proudly creating an environmental friendly environment for
its customers (Ward 2016). Fresh and Fit carries the mission of providing people with the
healthy alternatives to fast foods. The values of Fresh and Fit is dedicated in providing people
of Malaysia with refreshing, one of kind taste is full of taste and juicy boost. With superb
smoothies and determined commitment to customers Fresh and Fit aims in maintaining
higher profitability in order to serve the customers for several years to come.
Vision statement:
The vision of the Fresh and Fruit is to address the primary concern of individual
health. The vision of the company is to serve the customers ranging from all the ages by
making their lives as simple as possible. The company aims to be leading healthy juice
producer in Malaysia with the motto of being synonymous by serving delicious and nutritious
product. Other vision of the Fresh and Fit is to maintain tight control of the cost and

7ENTREPRENEURSHIP PRACTICE AND PROCESS
operations during the expansion. Its vision is to create a strong sale in the metro cities and
establish a wide selling staff.
Company Description:
Business Overview:
Fresh and Fit is a fruit juice producing company that is designed to provide organic
fruit juice at a reasonable price and create a healthy social environment for fit enthusiasts.
The target market for Fresh and Fit will be individual from all age groups. However, will be
specially placing our focus on people that are involved in regular sporting or exercise
activity. Additionally, the business will be placing its emphasis on age group of 10-15 years
that are mostly students studying in schools and university to offer them with essential
nutrients through the help of organic fresh fruit juice (Ross and Byrd 2015). The central
product of the company will be organic fruit juice made from apple, orange, gooseberry,
grapes etc. that will provide the customers with the blend of natural fruits and vegetables. The
juice smoothie recipes will be fine-tuned by the chief juice extractor that would contain the
secret ingredients with no added flavours offering customers with uniquely irresistible fruit
taste. The Fresh and Fit will be requiring constant shipment of natural fruits and vegetables
along with the several better quality fruit juice blenders.
The business is believed to be viable since the data collected from the market survey
within the target market reflects that a large number of individuals ranging from school and
university students to daily joggers and sports indulged individuals enjoy having fruit and
products made from fruit. These potential customers have reflected their eagerness and
willingness to pay such services (Johnson 2014). The business aims to reach out those
customers that are willing to purchase the products of Fresh and Fit. Rather than preaching
the vitality of staying fit the important of staying fit would be pointed out to the customers

8ENTREPRENEURSHIP PRACTICE AND PROCESS
and an encouragement to voluntarily maintain one will be provided. On carefully considering
the market data and the extent of support received it is assumed that the business will be
generating gross of around $80,000 and net profit of around $50,000 on a yearly basis.
Location:
Fresh and Fit has numerous factors to make the business viably successful. Some of
which comprises of the location of the stores and outlets. The Fresh and Fit will be tactically
placed in the close nearness to Kuala Lumpur where there is numerous downtown shopping
district. Other factors that contribute to the location of the store is the further competition,
extent of advertising, strategies of pricing and continuous growth of the city lifestyle (Pakroo
2016). The store of Fresh and Fit will be unique to the Kuala Lumpur market since there are
not many competitors that provide casual communal atmosphere that the proposed business
will be providing to its clients in combination with higher quality fresh fruit juices.
Legal Structure and Organization:
Fresh and Fit will be opened in the form of individual enterprise which in other word
means sole proprietorship. The company will be opened in the name of “Fresh and Fit”. As
the new venture the business will be able circumvent any additional business taxes imposed
on the company given an American citizen were to open the business (Joy 2018). The
organization structure of Fresh and Fit will be having two executives namely the director of
the company and the marketing director.
Industry Analysis:
The fruit juice industry has witnessed growth during the year 2016 as it registered a
growth of 6% rise in the off-trade worth sales with 5% rise in the off-trade amount of sales.
The growth in this industry is primarily attributed to the premium trend, particularly within
the packed bottled of fruit and vegetable juice, carbonated and preservatives drinks. The

9ENTREPRENEURSHIP PRACTICE AND PROCESS
Malaysian industry is characterised by imported and quality brands of bottled water, fruit and
vegetable juiced and carbonated coffee (Schmidt 2015). However, the segments of fruit and
vegetable juice have logged a strong growth rates. For fruit and vegetable juice the group
witnessed a declining volume of sales but increase in the premium imported juice was
witnessed. The new blends of carbonated and transformed brands without the sugar and
preservatives were among the popular promotions, but, the RTD tea and drinks with Asian
speciality represented a declining volume of sales since they are falling out of style.
Figure 2: Figure representing trends of Beverage Consumption
(Source: Saebi and Foss 2015)
Consumer Trends:
During the year 2016, the consumers of Malaysia have regularly purchased the juice
for their family consumption. This represented that they generally preferred larger package of
fruit juices such as 1-litre liquid cartoons and 2 litre gable top cartons. For example the unit
price of the reconstituted 100% juice brands of pulpy mango is MYR 4.50 per litre whereas
the price per unit of peel fresh nectars brand stood 4.30 per litre. Therefore, leading players

10ENTREPRENEURSHIP PRACTICE AND PROCESS
have recognized that the opportunities for creating demand for the fruit juice at the affordable
price (Saebi and Foss 2015). This has resulted majority of fruit juice producers to introduce
various flavours variants in order to seek the attention and appeal of the customers.
The recent industry trends have represented a slowing trend in the Malaysian fruit
juice industry. The latest trends have raised the query of being healthy and trendy. The
increasing amount of customers that their time of being aware and well-versed on the stuff
that goes into their system has increased the demand for the goods and ready to drink juices.
Over the span of last decade, the juice market of Malaysia has improved by 13% in sales
volume by litres (Carayannis, Sindakis and Walter 2015). The recent market survey has
showcased that 47% of the consumers that are interviewed have stated that drinking juice
made them trendy while 49% of the consumers said they loved drinking juice since it enabled
them to share the goodness with their friends. Another pool represented that they Malaysians
were choosing their fruit juice based on the taste and quality of the drinks offered.
Over the forecasted time period, the consumers of Malaysia are anticipated to
continue to look for the healthy range of fruit drinks particularly the 100% juice. The primary
reason for this is that 100% juice is that group of products that are regarded as the organic
and does not contains any added artificial flavours. Nevertheless, slower growth is forecasted
over the period since consumers are aware regarding most of the products in the category and
they are prepared to try out most of the fruit juice brands that are available (Christensen,
Bartman and Van Bever 2016). Additionally, consumers have several substitutions to select
from in terms of the freshly made juice from the on-trade channels due to the competitive
prices and flexibility offered in making a combination of various fruit and vegetables. The
freshly made juice are regarded to be healthier than the artificial flavour fruit juice since they
do not contain sugar to make is sweeter and preservatives to preserve the drinks longer.

11ENTREPRENEURSHIP PRACTICE AND PROCESS
Major Players:
Twister fruit and Lottie Beverage are regarded as the major player in the fruit juice
market as they continue with the 23% off trade value share and off trade worth sales of MYR
300,000. Both the producers have the long-standing reputation of quality. Twister fruit is
directly located in the Kuala Lumpur market that serves fresh products to the consumers.
Although Lottie Beverage is located in the interior regions of Kuala Lumpur busy market it is
characterised as the purchase and go kind of store (Taran, Boer and Lindgren 2015).
Understanding and awareness of external business conditions:
Marketing & Promotion:
One of the major outside influences that coincides with the wide market of beverages
is the advertising and promotion. This factor can be both opportunity and threat given that
“Fresh and Fit” markets properly its products to boost high profits. Inside the confines of
Kuala Lumpur, Fresh and Fit should make use of the available means of marketing to attract
the stronger base of consumers comprising the mix of local customers and tourists (Herrera
2015). The profitability of the business rotates around the marketing and promotion as the
external factor of upmost importance.
Social trends:
Another important factor that coincides with the business of “Fresh and Fit” is the
present social and health trends. Consumers have expressed their willingness of purchasing
freshly made fruit juices. The Malaysian government have expressed the vitality of nutrition
through the marketing programs and this essentially turns out to be free promotion for Fresh
and Fit. Local citizens of Malaysia have begun adopting healthy eating pattern (Isard et al.
2017). With growing demand for fresh nutrients Fresh and Fit will offer its potential