Pasta Manufacturer Business Plan Leave a comment

The Pasta Tree, Springfield’s sole fresh pasta retail producer, is located in downtown Springfield. The company has been selling fresh pasta products in its own retail storefront for the past three years as well as at the five natural food shops around the city. For the past three year, The Pasta Tree has enjoyed a loyal customer base which has led to an increase in sales of 15% every year. The Pasta Tree expects to gross over $300,000. This was possible with an initial investment of $80,000

The Pasta Tree is planning to expand its operation to include distribution to the major supermarket chains within the entire city. There are fifteen major supermarkets operating in Springfield. Additionally, there are more than thirty-five smaller grocery shops that serve the growing metro area. The Pasta Tree needs to double its production capacity in order meet the growing product demand. Owner funding and internally generated cash flow will enable only a portion of the expansion plan. Pasta Tree will receive a $50,000 loan to finance the expansion and renovation of its production facility. Sales projections for the next three years are based on current sales success with the target customer base in Springfield.

This strategy will lead to sales revenues of almost $420,000 per year.

Pasta Tree is situated in a 3,000-square-foot facility. This facility serves two purposes: as a shopfront and as a production facility. Half of the area will now be used for production. $10,000 will be spent on the preparation of the new production area. The new equipment will cost an additional $30,000. The company will also have to upgrade its packaging equipment to meet the new demand. This will cost $10,000.

Pasta Tree’s new marketing campaign will be launched in supermarkets and grocery store that carry its products. For new customers to be attracted, attractive in-store displays were created. They will also feature coupons and discounts to help new customers.

In conjunction with the introduction of the products, The Pasta Tree will be a major sponsor of the Canal Run which raises funds for children’s cancer research.

1.1 Objectives

These are The Pasta Tree’s objectives:

• Product quality can be improved by expanding production facilities.
• You can expect strong sales from the city’s major supermarket chains.
• Ensure you have tight control over cost and operation when expanding.

1.2 Mission

The Pasta Tree’s mission is as follows:

• Quality
• Valu: We offer greater consumer value by offering nutritious products with incredible flavor.
• Integrity Our customers rely upon the quality of our pasta products. The Pasta Tree’s commitment to the highest quality is what gives our customers their trust. We promise our customer that they will never be disappointed with our products.