A manufacturing business is any business that uses components , raw materials to make a finished goods . Manufacturing hlds a lot of significance to the sustenance of society.
Here are the various steps to start a manufacturing business
- Market Research
allows a company to discover the target customer and get opinion and other feedback from consumers about their interest in the product or service . This research includes surveys , product testing and focus groups
2. Product conceptualization and identification
involves ideas related to business such as product line . After the assessment of ideas, we could identify the product that would manufacture depends on various parameters such as market demand, supply, future demand forecast etc….
3. Detailed Project report and Techno Economic Feasibility report
is to determine the technical feasibility and financial viability of the project. It helps the client get a detailed evaluation of the project.
4. Finances
defines the management of money and includes activities such as investing, borrowing , lending , budgeting , saving and forecasting. Here , after the DPR and TEFR is ready, then they easily get the idea of funding requirements to start a business. So many schemes have been there to get funding for business.
5. Registration and Approvals
means government approval for marketing and sale of a licensed product in a country. After they set up the finance , they should complete their registration and approvals . Different types of companies that are incorporated in India include private sector, partnership, sole partnership, limited liability partnership,public limited company etc…
6. Business Development & Marketing
Business development focus on the improving customer service and marketing aims to create better content and messaging that can also attract customers to the business. Here , as the DPR and funding’s are done , then it would be the time to start the marketing activities.
7. Machinery Ordering and Procurement
is the process of finding and purchasing the tools your company needs to operate effectively. Machines can be used in 3 ways , one manually operated or semi-automated or completely automated. As machines are important for manufacturing, always consult an expert before purchasing a machinery.
8. Plant Layout Design , Building and Commissioning
Plant layout is defined as the technique of locating machines,, processes and plant services within the factory . After ordering the machinery, we can start with the plant layout and design based on the size and shape of the machinery. Always some extra care should be taken while selecting the location for machinery as considering some factors such as electricity,connectivity etc..
9. Workforce recruitment and Training
Every manufacturing company should have a well trained workforce. The productivity of the business depends on the skills of human resources . So always a manufacturing enterprises should train their workforce in every field.
10. Product Prototyping
is the act of designing and manufacturing a product as close to the product deliverable. Here by using product prototyping , we should design and test the product whether it is ready as expected. It would save time and money in designing the product.
11. Certificates and Licenses
These are credentials that demonstrate a level of skill or knowledge to perform. Here, we need lot of certificates and licenses before launching a product in the market. The type of certificates and licenses depends on the industry.
12. Mass production
After product prototyping, next step is mass production that means manufacturing of large quantities of standardized products . this facilitates the efficient production of a large number of products.
13. Distribution and Logistics
Distribution channel is a process in a chain of networks for the distribution of goods and services. These channels includes a producer, distributor , wholesaler , retailer and consumer. Here, the manufacturer can start the distribution through these channels.
Here i am sharing a business plan of Hills Natural
Executive Summary
Nilgiri hills, situated in the South India, sheltering numerous of beautiful tea gardens. The favourable climatic conditions, makes Nilgiri a truly unique.
Nilgiri was the first place to start the Organic tea. Teas are grown at elevations ranging from 1000-2500 metre above sea level.
The balanced blend of flavour and body makes Nilgiri tea a blender’s dream but Hills natural is a production unit of unblended products like tea, coffee etc.….
So that is the speciality that Hills Natural is a product which is cultivated and processed in district of Nilgiris.
The Company
Hills natural is the brand name of premium tea collection from various gardens in Nilgiris. Customers can choose varieties of tea products like organic tea masala tea lemon tea, cardamom tea etc.…
Hills natural makes tea bags and loose tea packs for its customers and will ship them to doorsteps worldwide.
Our product supplies are from Nilgiris to places all over India and GCC countries like Kuwait, Qatar etc…….
The Products
- Tea
A deliciously fragrant and exquisitely aromatic tea, with high tones of delicate floral notes and golden yellow liquor. (Broken Orange Pekoe Fanning’s Tea) is a much sought after Ceylon tea grade.
- Regular Tea
Nilgiri Black Teas are full-bodied, brisk in style, and blessed with tremendous mouth-feel and fine aroma. Black teas are rich in vitamins, minerals.
- Black Tea
A deliciously fragrant and exquisitely aromatic tea, with high tones of delicate floral notes and golden yellow liquor.
- Green Tea
Pure and delicate Nilgiri Green Tea, the leaves are handpicked and packed with minimal processing.
- Lemon Dip Tea
Refreshing lemon flavour comes alive when merged with our fine loose leaf tea from Nilgiris.
- Robusta Coffee Powder
100% Premium Robusta Ground Coffee Powder is a freshly roasted with no chivory.
- Green Cardamom
This is a hand sorted products with no artificial colors, flavours and no preservatives.
- Cloves
This is a hand sorted products with no artificial colors, flavours and no preservatives.
- Homemade Chocolates
Labelling
Every product of hills natural has their own labels and containers.
Tea accessories
Hills natural offers cups, t shirts as company gifts to make the customers happy and enjoyable.
2.3 Product Benefits
Customization
online shoppers can design their own exciting tea blend bags or loose leaf tea combinations according to their personal tastes and needs. Customers this way get a product that is specifically tailored to their needs. This gives them additional value for their money. Customized products can be differentiated against mass products, and are more attractive.
Health
Tea drinks represent healthy alternatives to coffee and other sugary drinks.
Shopping Experience and Social Community
Our web site and store will make tea purchasing a fun and creative process and a social experience. Shoppers will follow an easy step-by-step method to create personal blends made of tea leaves, flavours, and other ingredients. We use social media, such as Face book, Twitter, and blogs to create an online community for tea enthusiasts to share their knowledge and experience with each other. In our retail location, customers can make their order via touch screen computers. This will speed up the line and make shopping even more interactive.
Education
Every tea will have a story. The stories will educate consumers about the history and origins of the tea and about the people involved with the tea, the growers, pickers, sorters and such. The stories will facilitate creation of global awareness and a sense of global community as Hill’s Natural Tea drinkers become part of the story by drinking the tea and creating their own blends and sharing their experiences and ideas with others.
Growth Strategy
Hill’s natural has entered the market by 2018 November, at Gudalur. After we have a good understanding of customer needs and built out reliable supplier relationships, we had launched our website in November, 2018.
3.0 Market Analysis
3.1 Industry
India is among the largest producers and consumers of tea across the globe and tea has emerged as one of the most cost-effective and healthy beverages. Moreover, the increasing consumer preference for premium and packaged tea brands is providing a thrust to the market growth. Tea manufacturers are using multi-layered packaging to store and distribute tea and minimize the instances of adulteration, spoilage and maintaining the fragrance and freshness of the tea leaves. Growing consumer awareness regarding the health and medicinal benefits of organic and green tea variants is also contributing to the market growth.
An analysis of the key trends in each sub-segment of the India tea market, along with forecasts at the country and regional level from 2022-2027. Our report has categorized the market based on product type, packaging, distribution channel and application.
- Green Tea
- Black Tea
- Others
Tea is widely available in numerous variants to suit the taste and preferences of the consumer. This, coupled with the increasing willingness among individuals to experiment with unique tea blends, is impelling the market growth.
Packaging:
- Loose Tea
- Paper Board
- Tea Bags
- Others
Key players in the region are offering tea in varying packaging options to provide the convenience of storage to their consumers, thereby expanding the overall market reach.
The Indian Tea market to exhibit a CAGR of 4.7% during 2022-2027.Significant growth in the food and beverages sector, along with wide availability of diverse product variants, are currently driving the India tea market.
Sudden outbreak of the COVID 19 pandemic has led to the changing consumer inclination from conventional brick and mortar distribution channels towards online retail platforms for the purchase of tea in India.
The Indian premium tea market is driven by increasing affordability and reliability of premium tea, aided by technological growth in the packaging of tea. The Indian premium tea industry is supported by the growth of tea market, which is expected to witness a further growth in the forecast period of 2022-2027, growing at a CAGR of 4.2%. The tea market is projected to reach 1.4 million tons by 2026.
Based on its types, Indian the premium tea industry can be segmented into flavoured black teas, green teas, functional botanical blends and herbal blends, probiotic teas, iced tea, among others, with black tea accounting for the largest market share. On the basis of packaging, the market is divided into loose tea, plastic containers, paper boards, aluminium tin, and tea bags, among others. On the basis of distribution channels, the supermarket/hypermarket sector accounts for the leading share in the industry. By application, the industry is segmented into residential and commercial. The major regional markets for Indian premium tea are North India, South India, East India and West India, with North India accounting for the largest share of the market. The key players in the above market include Tata Consumer Products Ltd., Hindustan Unilever Limited, Gujarat Tea Processors & Packers Ltd, Society Tea, and Tea xpress Pvt Ltd, among others.
Tea Industry
Tea is one of the most loved beverages in India and across the world. People have enjoyed tea since times immemorial and consider it to be one of the most cherished parts of their native culture. The love of Indian audiences for this super beverage has given the tea industry a loyal customer base in the country, which has resulted in fast-paced growth in recent times.
In the past few decades, tea has become a multi-million dollar industry and India is the second-largest producer of tea globally, after China. According to expertmarketresearch.com, the Indian tea industry is expected to grow at a CAGR of about 4.2% in the 2021-26 period and reach an approximate volume of 1.40 million tonnes by the end of this period.
Tea can be positioned as a refreshing drink which can be afforded by the common man. However, the easy affordability of tea has often led to its commoditization. As a result, a significant proportion of households across India considers coffee as a symbol for social status and offered to important guests.
Tea is expected to grow about 5% over the next 4-5 years, which is higher than the expected growth rate of normal tea
- Increasing customer preference for premium teas
With the advent of globalization and internet penetration, there has been a substantial surge in consumer demand, which has sparked new trends in the tea segment. As the variety of teas available to customers increased due to the opening of global barriers and the
advent of e-commerce, discerning customers started seeking innovation and diversity in the products being offered by tea brands.
In this scenario, the demand for premium teas has increased. As customers are displaying an active interest in the purchase of premium teas online, this medium is facilitating sales by providing additional product information and bolstering consumer knowledge and awareness. These premium teas include immunity-boosting specialty and flavoured teas, and the younger generation is lapping them up.
2.Growing brand consciousness
People are now progressively opting for branded labels instead of products from the unorganized sector. This has led to increased global investment in tea brands that have a compelling story to tell and a scalable business model.
Indian consumers these days look at food labels more than ever before and are willing to pay more for products that make the cut, especially those with added nutrients. They are also more loyal to trusted brands. The surge in brand preference has also come because of the inclination towards health and hygiene factors since people generally expect a product to be premium & reliable if it is branded. Customers who are concerned about the authenticity and hygiene of the product are also likely to turn towards reputed brands. Customers today are looking for innovation, flexibility, and compatibility for their fast-paced lifestyle. Conclusively, branding and labels will be on the rise in the future.
3.Use of new-age technology in tea production and marketing
The use of technology makes the processes more precise and accurate, and this reduces the probability of mistakes and wastages. The infusion of technology in the manufacturing process reduces the cost of production and time consumption of the entire activity significantly.
As operations become more efficient, the chances of human error shrinks and the amount of time spent on unnecessary tasks reduces, and the organization saves expenditure and generates more revenue.
Channels
- Online Shopping
Online shopping is very convenient, saves time, and creates the platform for mass customization. It makes a wide variety of products available .Mobile devices extend the possibilities of internet shopping and social media and this makes them a great platform for customized tea sales.
- Retail Shopping
Customers need to be educated in order to fully enjoy and appreciate high quality tea. Purchasing and enjoying tea is more similar to purchasing wine than soft drinks. A tea retail shop provides a better platform to engage and educate customers and has the opportunity to provide them with a unique shopping experience.
Product Strategy
Hills Natural will serve creativity and health in the form of tea. Product The most important feature of our product is its “Customer co-creation” feature that allows customers to build their own tea. Our customers will create personal blends of loose-leaf tea from high quality ingredients. We will provide an energetic atmosphere, and we build a social community that further encourages creativity and adventure. This will make shopping playful like a video game. We will provide creative suggestions for blending.
Hills Natural will attract and keep customers by making it easy and inexpensive for them to experiment and try new tea taste combinations. Hills Natural is more than tea.
Cognitive and Emotional Appeal
The customization of tea and the involvement of the customer promote feelings of individuality, control, self-expression, and making responsible choices.
The health benefits of our products play to the cognitive and emotional sides of customers. The healthiness of our products will appeal to those who consciously aim to live a healthy life and seek out healthy alternatives to quench their thirst. Our products also play on the emotions of customers. People are afraid of health problems and getting old. Our healthy products can relieve this fear and give people the feeling that they did something good for themselves.
Pricing Strategy
The price of our 10-pack tea blend bags will be an average of $4.99. This is at a lower price point than what customers pay for premium tea products. This pricing will bring our tea within reach of mainstream consumers.
The price of our loose leaf tea will vary product by product with an average of $2.49 per ounce. This price is in line with our competitors’. prices.
Direct sales with the help of the Internet will keep the price relatively low for our consumer and makes the company able to respond faster to consumer needs.
Our sales channels will attract partly overlapping customer groups:
- Online Store
Our online retail store will attract consumers looking for customized specialty tea products and a new, exciting online shopping experience. Online shopping is familiar to most consumers. Tea is good for online purchasing as it is light (low shipping cost) and durable.
5.6 Sales Strategy
We will use direct sales in all of our channels. Both at the mall locations and online we will sell directly to customers.
This is a win-win strategy. Consumers will have pay lower price for our products and our company will have the opportunity to get immediate feedback from our customers.