LEAN STARTUP MANAGEMENT (MGT1022)

CocoLoco: Fresh Coconut Water

BUISNESS MODEL PLAN

SUBMITTED TO :
PROF. SURAJ KUSHE SHEKHAR
SLOT- TE2

SUBMITTED BY:
BATCH NO: 7

16BEE0178 RAJAT PAUL (TEAM LEAD)

17BEC0733 P SAI DINESH REDDY
17BCE0335 PATEL YASH VIJAYKUMAR
17BCE2095 POTNURU SHIVAJI
17BBT0128 RADHIKA AGARWAL
17BEC0449 RAI NIKHIL B
17BCM0026 RISHAV KUMAR
INDEX
BUISNESS MODEL CANVAS
CHAPTER 1: BUISNESS BACKGROUND
1.1 COMPANY
1.2 INDUSTRY
CHAPTER 2: MARKET ATTRACTIVES
2.1 MARKET SURVEY
2.2 MARKET FEASIBILITY
2.3 OVERALL RISK ASSESSMENT
CHAPTER 3: UNIQUE VALUE PROPOSITION(UVP)
3.1 PRODUCTS AND SEVICES
3.2 COMPETITION
3.3 BRAND
CHAPTER 4: REVENUE MODEL
4.1 MARGINS
4.2 COST ADVANTAGE:
4.3 FINANCIALS
CHAPTER 5: SALES MODEL
CHAPTER 6: SUSTAINABLE COMPETITIVE ADVANTAGE
CHAPTER 7: OPERATIONAL OVERVIEW
7.1 CAPITAL INVESTMENT:
7.2 SEO OPTIMIZATION
7.3 CUSTOMER SUPPORT:
7.4 SWOT ANALYSIS:
CHAPTER 8: SURVEY CONDUCTED TO KNOW OUR CUSTOMERS
CHAPTER 9: TECHNICAL STANDPOINT
9.1 SNAPSHOT OF WEBSITE
9.2 3D MODEL OF THE PRODUCT
CHAPTER 10: CONCLUSION
BUISNESS MODEL CANVAS

Key Resources Key Partners Value Proposition Customer Customer

Relationships Segments

Skilled scientists Patanjali Cost Reduction Customer Reach targeted

acquisition mass market
Patent IPR filing Ayurveda Least use of
through content
Centres preservatives To reach the
Experimentation marketing
global
laboratory Energy drink Purely organic
Online availability customer
making
Trade secret of Easy Availability
companies Source engine
Product
Customized drink optimization

Guaranteed and Publicity through

safe social media

Attractive design Independent

and Good Taste distribution system

Key Activities Channels Revenues Streams

• Distribution from small • Survey, trial phases • Digital marketing

shop to big whole sale • Feedback system • Offline selling
market • Mails to avoid traffic • Door to door selling
• Partnership and affiliate • Through website,
• Word of mouth
marketing webpages,
• Offer, sales,
exclusivdeals collaborative
partnership and
business.
1. BUISNESS BACKGROUND

1.1 Company

Coconut water is becoming a popular refreshing beverage, owing to its high electrolyte
andpotassium content. It’s ideal as a sports drink substitute and as a quick pick-me-up,especially
for those who need to be rehydrated quickly. Coconut water is extracted fromfresh young coconuts.
It is fat free, low in calories and loaded with potassium. Coconutwater is great for replenishing lost
fluids in the body as it is lower in sugar and sodiumyet higher in potassium than most sports
drinks.But there is one trade off: as it is a natural substance, it’s prone to spoilage through
oxygenexposure. In mature coconut water, this reaction is manifested in it turning brown due
toexposure to high heat and oxygen – such as leaving the liquid to sit openly at roomtemperature.
Given these limitations, preserving the shelf life of coconut water is needed for it to have any
viable commercial value. This results in low supply of coconuts to noncoastal areas despite high
demand and rise in coconut prices. We at CocoLoco don’t believe that such a minor hiccup should
stop this nutrient rich drink to become a household name. Despite India being the third largest
producer of coconuts, there is no significant coconut drink brand in the country. Our aim is to tap
into this uncharted territory and build a brand of our own.

CocoLoco Pt. Ltd. is a privately held firm led by a team of young enthusiastic individuals and
guided by experienced senior professionals. We have chosen our business to be equally shared
among every members of our group. In this type of legal structure, the business haslimited liability.
It is easier to raise capital than partnerships or sole traders as shares canbe sold to a large number
of people (only friends or relatives). Management is shared. Continuity-the business will still exist
if one of the shareholders dies.

1.2 Industry

Products manufactured by the beverage industry include: bottled water, juice, sparkling and still
drinks, syrups, nectars, ready-to-drink and regular teas and coffees, dairy drinks, energy drinks,
sports drinks, fruit powders, and alcoholic drinks such as beer, wine, cider and spirits.

As beverage manufacturers increase production speed and output, which also lowers costs, the
industry continues to become increasingly streamlined and efficient, favoring its expansion.
Historically, two large entities have dominated the nonalcoholic beverage landscape: Pepsi (PEP)
and Coca-Cola. They distribute their well-known carbonated and noncarbonated drinks
internationally via sizeable bottling companies. The bottlers depend on these two industry leaders
to create new products, improve existing offerings and maintain sufficient advertising. Related
capital spending amounts to several billion dollars each year. The industry titans often boost their
results (and those of their subsidiaries) by purchasing smaller market players or by inking
promising distribution agreements. In prosperous economic times, consumers usually favor the
most famous brand names. Still, when customers are short of disposable income, they can turn to
competing, inexpensive private label and lesser-known beverages. Sales are seasonal, not
surprising, peaking during warm summer months. Consumer preferences will drive product
diversification. Most notably, greater awareness of the causes of common health issues, e.g.,
obesity and diabetes, has increased demand for bottled water and other low-sugar or sugar-
substitute drinks. Soda, including diet options, continues to fall out of favor. In response, beverage
companies have capitalized on the popularity of energy drinks and ready-to-drink coffee.
However, energy drinks have come under scrutiny due to their high levels of caffeine, as regulators
attempt to size up the associated risks. Product diversification may be achieved through internal
or external means. Beverage companies have spent heavily to open new bottling plants and develop
distribution networks in these countries. Some carry significant debt leverage, but cash flow is
fairly predictable and usually more than sufficient to cover annual interest payments (and
dividends) and maturities.

2. MARKET ATTRACTIVES

2.1 Market survey

Market conditions for a coconut water brand look exclusively favourable in the coming years.
Specially being from the country with the third largest coconut production and nomajor brand
selling it, this sector seems like a uncharted territory. The following is a brief survey that out team
did (amongst 100 individuals) that amongst the general public with participants ranging from age
10 to 60 and above. The gender ratio was evenly distributed and we found out that the general
public goes for juices, shakes and carbonated drinks, but there is a growing market of health-
conscious people going for health drinks and energy drinks as well. (30%) Along with the usual
such as taste and brand, more and more people are looking for health benefits in their drinking
options (52%). When told about our product, CocoLoco, more than 95% people were positive
about the prospectus of the product with around 71% people being super excited about it. Almost
everyone believed that our product will be a hit amongst people from all age groups and what is
interesting that about 80% of them did not know about any other familiar brand that sells similar
stuff, indicating that this market is still relatively new and easily dominatable. As far as the price
that the consumer base was ready to pay for the product came up to be around Rs.20.9. Around
58% of the subjects would like to make coconut water a part of their routine. One interesting
pattern that popped up was that people were generally inclined to drink coconut water after they
needed to feel refreshed like when feeling dehydrated or after a workout session.

The per capita consumption of soft drinks in India is around 5 to 6 bottles (same as Nepal's)
compared to Pakistan's 17 bottles, Sri Lanka's 21, Thailand's 73, the Philippines 173 and Mexico
605. The industry contributes over Rs 12 bn to the exchequer and exports goods worth Rs 2 billion.
. An NCAER study says that 91% soft drink sales are made to the lower, middle and upper middle
classes. Euromonitor International's soft drinks data shows that Brazil is currently the world's
largest market for packaged coconut water. Coconut water accounted for 67% of 100% juice retail
volume sales in 2010, compared to 47% in 2005 and 21% in 2003. This rapid share gain came
primarily at the expense of orange juice.

Tender coconut water is recommended for people of all ages. With the consumers turning health
conscious and preferring natural products, we believe that our product has a strong market both in
domestic circles and in countries abroad. Our main target customer is the ordinary ‘Aam-Aadmi’
(common man on the roads). Secondly, we target the young generation who have a fancy for
energy drinks. We also target the sport persons with our special energy pack. We want to make
our drink available for homes, offices, hospitals, sports persons, marriages, other occasions, hotels
and restaurants. The recent studies showing the impact of aerated drinks on health has turned
customer to ignore such artificially produced drinks and go for natural food drinks. The rising
population will require larger amount of food drinks. Our product will be a natural thirst quencher
during the long summer months and during these days we see demand picking up in Northern Parts
of the country. There is a huge potential for our product to compete against the cola drinks. We
also focus on areas like Delhi, North Indian States where there is huge demand for tender coconut.
Tender coconut water is recommended for people of all ages. With the consumers turning health
conscious and preferring natural products, we believe that our product has a strong market both in
domestic circles and in countries abroad? We target the young generation who have a fancy for
energy drinks. We also target the sport persons with our special energy pack. We want to make
our drink available for homes, offices, hospitals, sports persons, marriages, other occasions, hotels
and restaurants. So, we will have to focus on the market against cola drinks. While sales of fizzy
drinks remain sluggish, coconut water was the world's fastestgrowing cold drink last year. Worth
$2.5 billion (economictimes.indiatimes.com). The global packaged coconut water market size will
cross US$8.3 billion, growing significantly with a CAGR of 25% during the period 2017−2023.
The market is expected to increase in terms of volume and revenues. The global packaged coconut
water generated a revenue of $2689.8 million in 2017 and is projected to rise with a CAGR of
24.2% during 2018-2023. Packaged coconut water market is expected to witness significant
growth due to its health benefits. The increasing demand of tastier and healthier drink is one the
reason boosting the flavoured packaged coconut water market. (www.arizton.com)

India packaged coconut water market stood at $ 15.38 million in 2016, and is projected to grow at
a CAGR of over 17%, in value terms, during 2017-2022 to reach $ 40.73 million by 2022, on the
back of rising health concerns due to hectic and stressful lifestyle and increasing consumer
spending on wellness products to prevent signs of ageing. Moreover, surging demand for packaged
coconut water can be attributed to growing awareness about potential health benefits of drinking
coconut water, natural and healthy drinks over high calorie carbonated drinks. All the above stated
factors are likely to propel demand for India packaged coconut water market over the next five
years (www.techciresearch.com) The coconut supply chain in India remains an unorganised and
complex sector (www.thehindubusinessline.com), with the majority of organised supply heading
towards coconut oil production and other coconut uses. Since the demand for the water on an
industrial scale is still so recent, marketers of the water often struggle to find large enough volumes
from reliable suppliers. While the Coconut Board of India aims to increase the demand for coconut
water and coconut-based products, their plans for generating demand are outdated and have not
caught up with the potential of packaged coconut water. Having said that, the Coconut Board has
started to promote technology that can extract the water and bottle it, a method that has been
adopted by several manufacturers in the southern states. For the coconut industry to truly
modernise, the Coconut Board will need to work alongside the new wave of packaged coconut
water entrepreneurs to mechanise the coconut collection and aggregation process and improve the
availability of the nuts in their young, drinkable form. (www.fnbnews.com)

2.2 Market feasibility

Target market: Open-Air Events

1. Sports Events like IPL (Indian Premier league) Matches, Other Cricket matches,

Hockey matches, etc.

2. College Fests.

3. Carnivals.

4. Day light festival celebrations.

Selling place: Anyplace where the event is happening like Arenas, Grounds, Open areas.

2.3 Overall risk assessment

Major risks associated with the operation: Major risks with the plan can be spoilage of product,
transportation delays, mitigated sales etc. Survival outlook for each of the above risks: To deal
with spoilage, we need to have a cold storage unit, for timely transportation and distribution we
need to make full use of the national highways and railway line available and finally focus on the
market and advertising to boost sales.

Even the risk of spoilage of the product is minimised as the target market is Open Air events so
the production of the beverages will be done only when Ordered and will be sold within two three
days and will be consumed.

3. UNIQUE VALUE PROPOSITION(UVP)

3.1 PRODUCTS AND SEVICES

CocoLoco mainly aims for the packed coconut water in sale allover the country. Pure and sweet
tender coconut has tremendous medicinal properties and is a thirst-quenching, soothing health
drink for all age groups. CocoLoco provides a premium drink of coconut water in its natural state
along with preservatives. The products presently in sell are:
Products Price

CocoLoco Coconut water (1L bottled pack) Rs. 99

CocoLoco Coconut water (200ml tetra pack) Rs. 25

Cocoloco charged (200ml tetra pack) Rs. 35

3.2 COMPETITION

From the get go, the survey that we had conducted with the general public presented the view that
around 80% people did not know any widespread coconut water brand in India, leaving a big
market for us to explore. The 50-bn-rupee soft drink industry is growing now at 6 to 7% annually.
There are about 110 soft drink producing units (60% being owned by Indian bottlers) in the
country. Although relatively unknown there are some packaged coconut water brands in India such
as ‘CocoSip’, ‘Cocofly’ and the most widely known ‘CocoJal’. India packaged coconut water
market is controlled by these major players, namely– Jain Agro Food Products Pvt, Pure Tropic,
Dabur India Limited, Nilgai Foods Private Limited and Nature’s First India Private Limited. Even
though the sector of coconut water has immense potential in India, there are not many successful
examples of popular products due to unsuccessful marketing campaigns and not relating to the
target consumer, sky-rocketing prices, having loads of preservatives and being an unorganised as
a sector.

We also have big competition from the carbonated drink industry which currently dominates the
market. Pepsi and Coke are the major players in soft drink industry. In India, Coke and Pepsi have
a combined market share of around 95% directly or through franchisees. There are about 110 soft
drink producing units (60% being owned by Indian bottlers) in the country. Some of the leading
brands are Coca Cola, Thums Up, Limca, Fanta, Maaza, Pepsi, Mirinda, 7'UP, Slice etc. These
drinks have always been a crowd favourite for their unique taste and brand value. But in the recent
years these brands have started losing their market shares due to the new health conscious Indian
consumers.
3.3 BRAND

CocoLoco: Fresh Coconut Water

(The name has a rhyme in it making it fun to pronounce and also conveys the true characteristic
of the product in Coco, i.e. Coconut. A short description of the product is given in the subtext.)

The logo is fresh and modern. The colour scheme is calming and reminds the buyer of the ocean
and the waves. The font is clean and understandable. A coconut clipart is introduced to cement the
branding ideology and the basis of the product.

4. REVENUE MODEL

4.1 MARGINS
4.2 COST ADVANTAGE:

Raw coconut will not cost too high a single piece. We can provide a refreshing and healthy drink
in low cost. Moreover, coconut skins can be recycled which is a great thing for us. This will lower
our cost further. This product is one of its kind so it’s a great market for us and for a cost of only
Rs. 25 everyone will try our product. The charged pack has added minerals and nutrients specially
for gym going people and health conscious people. The bottles and tetra packs can be manufactured
be some local company near the warehouse which will lower our transportation cost. Mostly the
warehouse will be not in the proper city, we have planned its location in a village area which will
allow us to sell the skins easily. Due to the placement of our factory, village people will get
employment and the villages will develop.

4.3 FINANCIALS

Possible means of financing are as follows:

Bootstrapping: Bootstrapping or self-financing is an early stage phenomenon in which an

entrepreneur brings his own funds to the start of his venture .

Angel Investors: An angel investor comes with different tags such as a seed investor, a business
angel, a private investor and an informal investor, an affluent individual providing capital for a
business start-up.

Family and Friends: One of the most sought-after avenues for early start-up of any venture is the
Family and Friends account. Although the value of the funds is small, it has supported numerous
successful ventures in their early days.

Crowd Funding: Pitching your idea to the public to raise small amounts has been a success in the
past. Crowd funding is a challenging task as one has to raise small amounts of money from a large
number of investors, mostly through online platforms.

Banks: This debt based resource is not often not a viable option for startups as they provide
funding based on collaterals or depending upon sales and or existing profits

Retail Investors: Individuals with business knowledge and similar industry experience who invest
small amounts in start-ups either on their own or through a small closed equity group.
5. SALES MODEL

a) Start-up costs

Land and Buildings: = (9000*12) = ₹1.08L

Machineries: = (9L+1.5L+6.3L) = ₹16.8L

License Fees: DFFL =₹3,00,000

FSSAI =₹2,000 MSME =₹1,799

Other Costs: Salary = (3+1) * (₹200/day) * (300days) = ₹2.41L Raw Materials:-

Coconut=₹24L

Tetra pack=₹8.1L

Additives=530*300=₹1.59L

Funds:

Self-generated=5*₹6L=₹30L

Loan=₹27L

b) Fixed capital

Land and Building=₹1.08L Equipment=₹16.8L

c) Working capital

Inventory: Shelf=₹15L Progress=₹45L Raw Material=₹30L Finished=₹45L Customers=₹15L

d) Capital for contingencies

In this, if our start-up faces any loss of contract or any loss due to fire or any natural accidents,
we’ll claim the insurance of our company. So, we will be able to overcome our losses by claiming
money from Insurance company, which will be around Rs. 40 lakhs.
• List of Incentives, Grants and Subsidies available from Govt.

The health benefits offered by our products will be the theme and key driver for our start-up. We
intend to capitalize on land, salary, machines and source for technical upgradation by Government
at 25%(₹5.07L) and ₹2.25L (75%) for market assistance for micro, small and medium projects and
also we will get some incentives from CDB. Coconut Development Board provides Financial
Assistance under Technology Mission on Coconut to entrepreneurs for setting up /modernizing /
expanding coconut processing units and promoting value added coconut-based products. We wish
to make use of this facility. We intend to use these options. Our product will be offered at hospitals,
health centres and gymnasium through retailers

• Break even analysis

The following assumptions are made: The total production of coconut water is about 7,50,000
cans (2500 can/day X 300 days). Also, we assume there is no inventory i.e., the number of cans
produced is sold in the market. The following table gives the total sales turnover for the first year.

Table: Sales Forecast

Product Price/Unit No. of cans sold Sales in Rs.

Coco loco 19.25 70,000 Rs.1,347,500

Breakeven quantity is given by Q = Total fixed cost/ (Price/unit – Variable cost/unit)

Quantity Sold 70,000

Price per unit Rs. 19.25
Variable Costs 1,347,500
Variable Cost per Unit Total Rs. 20
Fixed Cost 4,29,000
6. SUSTAINABLE COMPETITIVE ADVANTAGE

Presently in the industry no one is in the manufacturing of such kind of products. Thus the
competition in the market is very less and demand is ample . All the components used in the
project can be outsourced . Tender coconut water is recommended for people of all ages. With the
consumers turning health conscious and preferring natural products, we believe that our product
has a strong market both in domestic circles and in countries abroad. Our main target customer is
the ordinary ‘Aam-Aadmi’ (common man on the roads). Secondly, we target the young generation
who have a fancy for energy drinks. We also target the sport persons with our special energy pack.
We want to make available our drink for homes, offices, hospitals, sports-persons, marriages, other
occasions, hotels and restaurants. The product is going to be very cost effective. It has good
average returns on investment over the life of the project.Our project Year-round availability of
cheap raw materials. With the use of appropriate machinery, the labour involved is not expensive,
as it is mostly unskilled and widely available.Some of the leading Brands Coca Cola, Thums Up,
Limca, Fanta, Maaza, Pepsi, Mi, 7'UP, Slice etc. These drinks have always been a crowd favourite
for their unique taste and brand value. But in the recent years these brands have started losing their
market shares due to the new health conscious Indian consumers. Our business will attract number
of investors since it is something Out of the ordinary and it is an idea that is revolutionary.

7. OPERATIONAL OVERVIEW
7.1 Capital Investment:
Equipment involved:
1. Machines for coconut water extraction and processing and sterilization:
This involves tools for break opening the coconut shell to extract the coconut water and
also facilities for storage of coconut water. Also, machines for the processing of
coconut water by which the coconut water is increased in quality and also its shelf life
is increased. This is the reason why sterilization is done and so we need machines to
carry out sterilization. It is here that our preservatives are mixed with our product.

2. Packaging units:
After the processing of coconut water, the coconut water has to be packed in tetra
packs. For efficient and hygienic packing, we need packaging units.

3. Cold storage:
After packaging we need to properly store them which will addon to their shelf life.
So, we need cold storage facilities.

Production Calculations:

1 coconut :500ml

Total coconuts daily: 1000 coconuts

1 tetra pack volume: 200ml

Total tetra packs per day :500lt/200ml =2500 packs

Total tetra packs in a week :17500 packs

Cold room storage needed for 1-week storage: 3500lt +1500lt = 5000lt=5m3
 Comparison of atleast 3 brands/suppliers of the above

A. Processing Unit:

1. Ace Pack

Product Details: Automatic Grade: Automatic, Design: Standard, Capacity: 500 litres

Features: Long working life, high efficiency and sturdiness. It is capable of breaking open
the coconuts and then process the coconut water and also carry out the sterilization
processes all in one machine.

Area occupied: 3m *2 m

Cost: Rs 9 Lakh/Unit

2. Bertuzzi unit

In the Bertuzzi unit, there is no single unit where the processing and sterilization can take
place. It requires separate units and so it becomes more expensive and therefore

the 1st unit is more preferred.

Area occupied by processing unit: 2m*2m

Area occupied by sterilization unit: 3m*2m

Cost: Rs. 15 lakh/ unit

3. Jiaozuo Machinery

This machine is suitable for coconut cut half to collect water. It is advance in technology.
This machine is made of full stainless steel. This machine is mainly composed of frame,
conveyor chain, juice discharge bucket , dial the rack, transmission reducer, and other
important parts.

Area occupied: 3*1*23 m3

Cost: Rs. 14 lakh/unit

B. Packaging Unit

1. Tetra Prisma Aseptic Packaging Unit:

The unit is capable of packaging 2000 litres per hour. It basically fills the bottles in a
hygienic manner and seals the bottles. A large number of bottles are simultaneously being
packed and also branded .

Area: 3m*2m

Cost: 1.5 lakh/ unit

2. Kira Aseptic packaging Machines

This is capable of packaging 7000lt per hour. It is massive and takes up a lot of space and
is very costly when compared to the other brand. This is preferred in factories which are
already established and are gaining a huge profit and are producing much larger volumes
of their products than we are at this initial stage.

Area: 3m*3m

Cost: 4 lakh per unit

3. Wenzhou urban exporters

It is a multi-Function Packaging Machine to be used for filling and sealing. It is
automatic and has certifications from CE. It can pack 30-80 packs per minute.

Cost: Rs. 4 lakh/unit

Area: 0.8*0.7*1.5 m3

4. One Glass Door Vertical Showcase

Door Number: Single Door
Door Type: Folding Door

Temperature Control: Mechanical

Capacity: 101-200L

Type: Display Cooler

Power Source: Electricity

 Temperature Type: Single-temperature

Function: Cold Storage

Cost: Rs 250000 per unit

The first one is preferred as this is more like a refrigerator and the capacity is less and so we will
need to buy multiple units in order to accommodate all our tetra packs and so the first option is
more feasible. Moreover, it’s a single temperature model where as in the first one the temperature
can be regulated according to our necessity.

5. Yourshine refrigerator room

Temperature: 0 to 10 degree Celsius

Warranty: 2 years

Usage: Food, Medicine, Food Storage, Lab Centre

Cost: 870000 per unit Dimension 3m*2m*2m

It cannot be customized and so it is too huge and space consuming. Moreover, its more expensive
than the first option and the warranty is also for lesser number of years

 Selected brand
1. Ace Pack Coconut Water Processing Machine:

It is a product of Ace Pack machines. The offered machine is available on numerous specifications
according to the needs of patrons. This machine is well designed by our team of adroit
professionals using high-grade basic materials and leading techniques in compliance with
international standards. Our machine is highly valued in the market for its high-speed processing.
There’s drillings and collection of coconut water happening in this unit. At a stretch 500 litres of
coconut water can be collected. This machine is also capable of in – container sterilization. The
sterilization of the coconut water also takes place in the same unit , that is , where the coconut
water is collected. This involves heating the extracted coconut water in temperatures ranging from
137 to 145oC for about 4 to 15 seconds. This has a more effective sterilization rate in killing off
bacteria that can cause degrading, which makes the water suitable for distribution in paper cartons
and storage for about 1 year in non-refrigerated conditions. In the other units, there is no single
unit where the processing and sterilization can take place. It requires separate units and so it
becomes more expensive and therefore this unit is more preferred.

2. Tetra Prisma Aseptic Packaging Unit:

The unit is capable of packaging 2000 litres per hour. It basically fills the bottles in a hygienic
manner and seals the bottles. A large number of bottles are simultaneously being packed and also
branded. Other units are massive and take up a lot of space and are very costly when compared to
this brand. Others are preferred in factories which are already established and are gaining a huge
profit and are producing much larger volumes of their products than we are at this initial stage.

3. Tian Jin Cold Storage Room:

A cold storage room where all our tetra packs can be stored until transportation. It can regulate the
temperature from – 10 to 4 degree Celsius, has a Brand Compressor Unit. It keeps stores item fresh
and frozen. It has certification from ISO and CE. Materials include 304 Stainless Steel Outer Plate.
This one is preferred as others are more like a refrigerator and the capacity is less and so we will
need to buy multiple units in order to accommodate all our tetra packs and so the first option is
more feasible. Moreover, others are a single temperature model where as in this one the
temperature can be regulated according to our necessity. Others cannot be customized and are
space consuming. Moreover, they are more expensive than this option and their warranty is also
for lesser number of years.

Dimensions: 2m *1.8m*1.5m= 5.4 m^3

 Quotation of all the machinery with exact prices and GST

a) Ace Pack Coconut Water Processing Machine
Cost: Rs 9 Lakh/Unit (Including 12% GST)
b) Tetra Prisma Aseptic Packaging Unit:
Cost: 1.5 lakh/ unit +12%GST = Rs 1,68,000

c) Tian Jin Cold Storage Room:

Cost: Rs 630000 per unit (Including 12% GST)

 ELECTRICAL POWER REQUIRMENT:

a) Lighting up the warehouse:

Lighting requirement for a factory is around 100 lumens per square feet for good working
conditions. The area of warehouse is 1500sq feet that implies we would be needing around 150000
lumens. 1 t-12 27watt 4feet led tube light gives around 2800 lumen. So, require around 53 tube
lights. Therefore, total power requirement for lighting is 53*27 watts.
We will require around 26 tube lights and 2 tube lights cost 2500rs. Total cost for lighting=
32000rs+4000(installation)

b)Fan requirement:

One 44-inch fan is effective for 225 square feet. So according to the area and office we estimate
a requirement of 5-6 fans. 1 fan is around 90watt so total power used by fans would be 6*90
watts.

Total cost for fans=5*20000rs+5000 (installation)

c) Cold Room:

Cold room requires a power of around 50 kwh/m3 /year and we are requiredto have a 5.4m3
. So, we require a 270kwh power per year.

d) Packaging Unit:

Tetra-packaging may score over bottles on a variety of factors. But on cost, it falls way behind.
Since a bottle can be reused about 20 times, each refill costs about 25paise. In contrast, 200 ml
tetra pack costs 80 paisa. Power 2.6 kw. 220volt

e) Coconut Water processing machine:

380volt and 3Kwatt

 Electrical requirements:

a) Wiring: Cost of wiring for a 1500 sqft warehouse would come around Rs. 50,000 to Rs. 70,00
using 200 amps high quality wiring for the load of the machines.

b) Generator: We are going to use a 7500-2500 KVA generator to power the machines.
Therefore, we are going to use the high quality generator from Ashok Leyland costing around
Rs. 3,88,000.

c) Switchboards: We need switchboards that can be used in a commercial setting therefore we

are using these switchboards and keeping in mind the machines we have, we will be needing 3
of those with 3 normal ones to operate lights, fans etc. bringing the total cost to Rs. 15,300
 List of suppliers
a) Raw tender coconuts:

Primary supplier:

Pollachi Nature Fresh Tender Coconuts

Vendor: Sree Traders
Price: Rs. 8/per piece
Location: Mannur, Coimbatore
Alternative Suppliers willing to sell at competitive prices:
Kavinsurya Coconuts in Othakalmandapam
Sri Jai Maruthi Traders in Shevapet
Akm Traders in Amabarampalayam

b) Tetra pack rolls supplier:

 c) Sodium Benzoate supplier: Sodium benzoate is an inexpensive chemical and can be
bought online.

Total Capital requirements

a)Start-up costs:

Land and Buildings:

= (9000*12) = ₹1.08L
Machineries:
= (9L+1.5L+6.3L)= ₹16.8L
Other Costs:

Salary = (3+1) * (₹200/day) * (300days) = ₹2.41L

Raw Materials

Coconut=₹24L
Tetra pack=₹8.1L

Additives=530*300
=₹1.59L

Funds:

Self-generated=5*₹6L=₹30L
Loan=₹27L
b)Fixed capital

Land and Building=₹1.08L

Equipment=₹16.8L

C)Working Capital

Inventory:

Shelf=₹15L

Progress=₹45L

Raw Material=₹30L

Finished=₹45L

Customers=₹15L

7.2 SEO OPTIMIZATION

We have concentrated on a few of SEO optimization methods which can monstrously build the
transformation paces of the website. we have focused on our content writing. We have made sure
that we include many of the keywords in our page, that will help google rank us better. With our
elegant design and responsiveness on the web browser to a mobile 4 device, we are planning to hit
the upper tier of websites or at least the upper middle tier of the websites to achieve a better in
flow of traffic.

We used Bootstrap mechanism to make our website which helps our webpages to load faster and
have same experience to small screen and large screen , so our customers won’t feel a difference
when the device is different. So this way we are optimizing the sales.

Website:

The website was one of the best approach to market the item and will enormously influence deals
and user experience so it was the most important one in the business & website helps to grow our
business where users experience the essecnce of our product.
7.3 Customer support:

Our company has a Policies page that includes returns and shipping information.

Return Policies:

In the event that you are not 100% satisfied with any item you purchase, we accept returns on any
item (other than FINAL SALE) that is unopened and has the tag intact. This applies to any product
shipped with defects in craftsmanship or material. Please contact us at info@cocoloco.com to
approve a return. We reserve the right to deny refund to sender without prior return approval. Only
unopened items will be accepted for returns/exchange within 30 days of when item was delivered
to you.

7.4 SWOT Analysis:

STRENGTHS WEAKNESSES

 End-user sales control and direction.  Customer lists not tested.

 Right products, quality and reliability.  We would be a small player.
 Superior product performance vs  No direct marketing experience.
competitors.  We cannot supply end-users abroad.
 Better product life and durability.  Need more sales people.
 Spare manufacturing capacity.  Limited budget.
 Some staff have experience of end-user  Don't have a detailed plan yet.
sector.  Delivery-staff need training.
 Have customer lists.  Customer service staff need training.
 Direct delivery capability.  Processes and systems, etc
 Product innovations ongoing.  Management cover insufficient.
 Can serve from existing sites.
 Products have required accreditations.
 Management is committed and
confident.
 OPPORTUNITIES THREATS

 Could develop new products.  Legislation could impact.

 Local competitors have poor products.  Environmental effects would favour
 Profit margins will be good. larger competitors.
 End-users respond to new ideas.  Existing core business distribution risk.
 Could extend to overseas.  Market demand very seasonal.
 New specialist applications.  Retention of key staff critical.
 Can surprise competitors.  Possible negative publicity.
 Could seek better supplier deals.  Vulnerable to reactive attack by major
competitors.

8. SURVEY CONDUCTED TO KNOW OUR CUSTOMERS

Market conditions for a coconut water brand look exclusively favorable in the coming years.
Specially being from the country with the third largest coconut production and no major brand
selling it, this sector seems like a uncharted territory. The following is a brief survey that out team
did (amongst 100 individuals) that amongst the general public with participants ranging from age
10 to 60 and above. The gender ratio was evenly distributed and we found out that the general
public goes for juices, shakes and carbonated drinks, but there is a growing market of health-
conscious people going for health drinks and energy drinks as well. (30%) Along with the usual
such as taste and brand, more and more people are looking for health benefits in their drinking
options (52%). When told about our product, CocoLoco, more than 95% people were positive
about the prospectus of the product with around 71% people being super excited about it. Almost
everyone believed that our product will be a hit amongst people from all age groups and what is
interesting that about 80% of them did not know about any other familiar brand that sells similar
stuff, indicating that this market is still relatively new and easily dominatable. As far as the price
that the consumer base was ready to pay for the product came up to be around Rs.20.9. Around
58% of the subjects would like to make coconut water a part of their routine. One interesting
pattern that popped up was that people were generally inclined to drink coconut water after they
needed to feel refreshed like when feeling dehydrated or after a workout session.
SURVEY RESULTS:

Image 1: Survey Screenshot

Image 2: Age group of survey subjects

Image 3. Genders of survey subjects

Image 4. Usual soft drinks that the survey subjects have usually

Image 5. Soft drinks prerequisites for survey subjects

Image 6. Views of survey subjects about the product

Image 7. Opinions of survey subjects about suitability of the product to all age groups
Image 8. Consumption statistics for survey subject

Image 9. Expenditure statistics for survey subjects

9. TECHNICAL STANDPOINT

9.1 SNAPSHOT OF WEBSITE

We have made the website as responsive as possible it is because it is seen that the conversion rate
is highly depend on the user’s experience on the website and that is highly dependent on the
responsiveness of the website

All for are kept simple to make the website as user friendly as possible.
9.2 3D MODEL OF THE PRODUCT

10. CONCLUSION

Our company makes products that are healthy and has a huge demand both in India and outside.
The location of our factory helps us in getting raw materials at a low cost. Plant is well connected
to other places which ensure smooth logistics. CocoLoco is into a business which is widely
promoted as eco-friendly. Farm fresh tender coconut are selected and natural tender coconut water
is squeezed out, untouched by hand and put through a special process and packed in food-grade
cans, which keeps it fresh for months. The taste is natural and hence good. Tender Coconut Water
is considered the healthiest & best sports drink in the world, because it contains vitamins and
proteins. The benefits of tender coconut water discovered by ayurvedic experts centuries ago, is
even today being put to use in modern hospitals worldwide. Our emphasis is on delivering God’s
gift in its true and natural form. We promote our product as a natural thirst quencher, a health drink
and also as a substitute for artificial energy drinks. CocoLoco offers quality coconut water drink
in its natural form. Our vision is to be one of the largest producers of packaged tender coconut
water in the years to come. The government is promoting the food industry in a huge way as it is
seen as an emerging industry. It’s a recession proof industry. We are investing in latest technology
to extract coconut water and store the final product. The plant is located closer to other major
places near Arasur, Coimbatore, Tamil Nadu. We have solid growth plans as we plan to invest
more to diversify into other coconut products. The product has a huge export potential. Coconut
product industry has been growing leaps and bounds due the efforts taken by the government
authorities. Besides there is a changing perception among the people about the artificial drinks as
we see them shifting to natural drinks. The tender coconut water has many advantages over the
other fruit drinks.