BUSINESS AND MANAGEMENT

Contents
Introduction ................................................................................................................................ 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

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 that are 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 3

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 4

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 5

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. 6

By the commencing of new specialty salsa stores, a huge raise in salsa products selling is seen.

Introductory costs by Salsa Company

Marketing Legitimate Corporate insurance Point of sales software cost Supplies by official level or storage Inventory Rent deposits Barcode reader Printer Signatures Shelves Computer Cash register Total 800 80 250 1000 180 35000 1500 180 159 395 7498 1200 275

Funding Owner participation Bank lease or lender 13000 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.

THE SALSA COMPANY - CASH FLOW PROJECTION FOR YEAR ENDING FIRST CALENDAR YEAR
STAR T 1 TOTALSALES 0 0 0 6,000 6,880 4,920 4,720 5,070 5,745 7,105 7,730 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec TOTAL S 7,685 55,85 5 2 Merchandise sales 6,000 6,500 4,700 4,500 4,850 5,325 6,625 7,250 7,525 53,27 5 3 4 5 Class Tuition Crop Fees TOTAL CASH IN FROM SALES 6 7 8 9 CASH OUT FOR GOODS Purchase for Inventory 0 TOTALCASHOUTFORGO ODS 10 CASHOUTFOROPERATIO NS 11 12 13 14 15 16 17 18 19 20 21 22 Rent Ins-General liability Telephone Advertising Store Supplies Office Supplies Postage Bank fees Legal & Accounting Training 0 TOTAL CASHOUT FOR OPERATIONS 23 NET CASH FROM (40,32 1) 2,214 2,855 1,754 1,629 1,812 1,961 600 250 80 750 175 995 15 5 75 2,476 0.0% (5,321) (925) (925) (925) (945) (945) (945) (1,02 0) 2,310 (1,02 0) 2,936 (1,02 0) 3,076 (13,99 1) (19,77 4) -35.4% -25.0% 600 60 80 80 35 50 15 5 75 2,476 600 60 80 80 35 50 15 5 0.1% 4.4% 600 60 80 80 35 50 15 5 600 60 80 100 35 50 15 5 600 60 80 100 35 50 15 5 600 60 80 100 35 50 15 5 600 60 80 135 35 90 15 5 600 60 80 135 35 90 15 5 600 60 720 135 35 90 135 45 6,000 790 1.3% 1,695 490 1,565 0.2% 0.1% 3.0% 0.9% 2.8% 10.7% 1.4% 35,000 0.0% (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% 2,861 3,100 2,241 2,146 2,313 2,839 3,775 3,774 3,589 61,638 110.4% 200 180 0 100 120 0 100 120 0 100 120 6,000 240 180 6,880 240 240 4,920 240 240 4,720 100 60 5,070 1,320 1,260 5,745 2.4% 2.3% 7,105 7,730 7,685 55,85 5 100.0 % 95.4% 100.0 % % Sales

OPERATIONS 24 25 OTHERCASHIN 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 29 30 31 32 33 34 35 36

TOTAL OTHER CASHIN OTHER CASHOUT Closing costs P&I Debt Service Owner Draw Taxes Owner Draw Working Capital Equipment TOTAL OTHER CASHOUT

50,742

50,742

90.8%

0 790 500

0.0% 790 500 0 790 500 0.0% 1.1% 60 (850) 60 (850) 60 (1,35 0) 2,005 1 904 1 279 1 462 1 60 (1,35 0) 611 1,365 60 (1,35 0) 960 3,370 60 (1,35 0) 1,586 4,274 60 (1,35 0) 1,626 4,553 60 (1,45 0) 9,797 5,015 10,361 (21,17 1) 17.5% 5,626 6,586 8,172 1 0.0 % 18.5% -37.9% 790 500 790 500 790 600 790 3,100 790 5.6% 790 7,110 12.7%

600 9,821 (10,42 1)

600 60 (850)

37 38

NET CHANGE IN CASH BEGINNING CASH

1,364 1

39

ENDING CASH BALANCE

1,365

3,370

4,274

Target audience
Board of directors Investors / lenders /vendors Present work force Contractors Suppliers Top management Distributors Customers etc

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 Marketing 8(4): 299311. Gummesson, E. (1987) The New MarketingDeveloping Long Term Interactive Relationships, 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.

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