Mystic Foods Business Plan

Executive Summary

A1. Company Identification

This business plan for Mystic Foods addresses the company’s missions and goals. Also, the company's products and pricing policy for the products are explained in detail. Organic processed foods and drinks are rapidly gaining popularity in the US mainly due to the health benefits accrued from their consumption (Pelletier, Laska, Neumark-Sztainer, & Story, 2013). Based on this assertion, this plan explains the success potential of Mystic Foods through production and differentiation of organic processed foods in the US. Marketing strategies together with distribution plans aimed at achieving a significant market share are also a major consideration in this plan. Located in Manhattan, Kansas, the city offers a conducive environment both for doing business and for prospects of the company. Undoubtedly, the factory's location together with business headquarters in the state of Kansas is desirable because of the central location and availability of infrastructure.

A2. Company Mission

Mystic Foods had a clear and precise mission to produce and adequately distribute high quality and differentiated organic processed foods and drinks with a focus on the customers, short and long-term wellbeing. The company's products are healthy and free of synthetic preservatives, GMO traces, and additives that compromise the health of our esteemed consumers. Expansively, this mission statement outlines the company’s chief idea and culture which is to produce and distribute foods that are free from any negative health effects to the consumers. Unhealthy foods consumption is partly to blame for the increased prevalence of cancer and other lifestyle diseases like diabetes and hypertension in the US (Widener & Li, 2014). The company’s mission aims at ensuring that production methods applied as well as the products distributed curb the negative effects of consumption of these unhealthy foods. Additionally, product differentiation ensures that the needs of various customers are served. 

A3. Business Goals

The primary goal of the company is to rank among the top five leading producers and distributors of organic processed foods and drinks in the US within the next five years.  Mystic Foods' mission is to produce and adequately distribute high quality and differentiated organic processed foods and drinks with a focus on the customers. This goal supports the company's mission through a focus on achieving an excellent ranking in the organic foods industry. By striving to achieve this goal, Mystic Foods will offer quality products to its customers. The other goal of the company is to make certain that none of its products has negative effects on consumers, hence helping the company to acquire and maintain loyal customers. Through ensuring that the products are harmless, the company's mission of healthy products is achieved. 

A4. Keys to Success

•    Mystic Foods intends to create nationwide awareness on the benefits of healthy foods. The company will run this campaign on social platforms and televisions since they are affordable and also accessible by a majority of the population. •    The company will hire qualified, innovative and experienced staff to spearhead the production goals. Scientific testing of all products before processing is necessary to ascertain their suitability with the company’s objectives. Therefore, a blend of employees with all these qualities will ensure that the company does not compromise on the quality of its products. Innovation is vital in the process of differentiating Mystic Foods products from those of competitors.  •    Staying keen to the needs of customers is vital for the company's success. The organic foods markets are rapidly changing with customers emphasizing flavors and quality of services offered at stores. Meeting these needs demands that the company's distribution strategies be implemented with a focus on these needs.

Company Summary 

B1. History of the Industry 

Mystic Foods will operate in the organic processed foods industry. Processed foods have been in existence for thousands of years, but it is until the beginning of the 20th Century that the processed foods industry emerged in the US. This is the period that products like Wonder Bread and Snickers Bar emerged. However, the processed foods industry experienced a change in fortunes after World War II due to aggressive advertising strategies and change in beliefs (Siedel, 2016, p. 2). This was a period of increased industrialization with most American families being able to afford a television set. Companies advertised their products through televisions with processed foods labeled as a sign of civil superiority which the citizens quickly embraced because of the Cold War (Siedel, 2016). Additionally, the expanding working class meant that most people found little time to prepare proper meals hence processed foods were the obvious choice. Consequently, the processed foods industry continued to grow over the decades as innovative methods introduced new products at affordable prices. 

Interestingly, most of the people continued to consume these unhealthy foods oblivious to their adverse health effects. The 90s saw a change in the attitudes of the consumers although a significant majority continued taking the unhealthy foods. The healthy foods movement is credited for starting the campaign against consumption of unhealthy foods (Wan, 2012). Concerns about the additives and chemicals used in processing those foods came to the fore (Wan, 2012, p. 2). Increased knowledge of the effects of these additives and chemicals and their role in causing cancer, diabetes, hypertension and other diseases led to a decline in the sales. The most convenient alternative was the organic processed foods. Hence, the organic processed foods industry was born. 

Tentatively, the organic processed foods industry has experienced unprecedented growth from the 90s until today. Emphasis on organic processed foods has always been on the raw foods used in the production process. Organic foods are the preferred choice. These foods are grown and maintained without the application of chemical-based fertilizers or insecticides (Wan, 2012). Thus, the organic processed foods created the need for change in crop production methods from conventional methods to organic methods. The organic processed foods industry grew from $2.1 billion in the 90s to $3.6 billion in 2008 (Wan, 2012). Therefore, as the industry continues to grow to shifts in attitudes due to awareness on the health benefit of organic processed foods, more players will enter the industry thus stiffening competition. However, the industry’s potential implies that application of the right strategies will lead to the growth of Mystic Foods. 

B2. Legal Form of Ownership 

Mystic Foods as a startup is best suited to a limited liability company. This form of ownership allows the owner to exercise a significant form of control over the company’s decisions while at the same time maintaining limited liability over the company’s debts (Thorne, 2017). This form of ownership offers two major benefits to the owner; it allows the owner to exercise managerial control over the business and also protects them from being held liable for the company’s debts. Comparatively, the downside of this form of ownership is that the owners are taxed individually as opposed to company level. As a startup, Mystic Foods requires the owner to have control over crucial managerial decisions that have a bearing on the company’s future. Some of these decisions include the level of production and the type of products that the company will produce. Also, the level and type of differentiation is a vital decision that needs managerial input. 

Apart from the managerial decisions that will be influenced by the decisions of the owner, Mystic Foods will also benefit from the other characteristics of a limited liability company. One key benefit is that the assets of the business are separated from those of the owner despite the owner being taxed individually. This implies that any financial constraints suffered by the owner do not affect the business. Additionally, the owner is allowed to input financial assistance to offset the company’s debts up to the amount that the owner has invested in the company. A limited liability company also offers flexibility in terms of sourcing for capital. The owner is allowed to allocate a percentage of the company to an investor who inputs capital into the business (Thorne, 2017). Thus, Mystic Foods while operating in an industry that is rapidly growing will likely need capital for expansion through acquisition of land or equipment. The management can, therefore, look for investors who will facilitate this type of expansion plans. 

B3. Location and Facilities 

Mystic Foods will be headquartered in Manhattan, Kansas. The location is ideal for the company's offices because of a number of factors. Manhattan serves the metropolitan areas of Kansas which have a total population of around 100,000 people (Richards, 2017). The population is mainly made up of the working middle class with good purchasing power. Additionally, the population is well distributed in the metropolitan area, thus providing an opportunity for the company to market its products. Thus, Kansas City offers a suitable location for setting up the company's headquarters. The factory will also be located in the city. Kansas has abundant in natural resources like land and water which are essential considerations for setting up a factory. The city offers affordable land prices. A location of 300 square feet is suitable for setting up the plant and office headquarters where the company’s business will be conducted. 

Importantly, the facilities for carrying out the processing and packaging must meet the industry’s standards. One of the most important equipment in the processing plant is the two or three compartment cleaning sinks (WSDA, 2017). This is the area where most equipment and utensils used in the facility are clean. The sinks must have a constant flow of running water at a temperature that can adequately clean the equipment. In light of that, water supply is a vital requirement. Depending on the size of the facility, the water supply must be adequate to clean and also carry out other needs at the plant. The clean water needs to be inadequate supply such that no interruption is experienced in the plant at any given time. 

Refrigeration is among the primary requirements of Mystic Foods processing plants. Since the facility will be handling fruits and juices, the products need to be kept at temperatures below 450F to avoid contamination and losses through spoilage (WSDA, 2017). Faulty equipment is also a matter of concern for the company. Electronic temperature monitoring will be used to control the refrigeration temperature such that alerts are provided for temperature ranges that fall out of the prescribed limits. Furthermore, the worktables where the products are handled should be made of stainless steel which is non-corrosive and also allows for regular and easy cleaning. 

Handling needs to meet the requisite standards of food. The National Organic Program (NOP) oversees and enforces these standards. For the company to commence operations, it must receive certification from the US Department of Agriculture (NOP, 2018). Certification is awarded after complying with all the requirements of the body such that all handling, processing, storage and packaging equipment meet the required standards. Application for certification includes the revelation of the plant's plans, handling equipment, and record keeping techniques (NOP, 2018). Inspection is then done to ascertain compliance levels and the areas where the facility falls short. The inspection is a detailed assessment of all the requirements of an organic foods processing plant. The inspector then files a report on his/her observations and findings. The final step is the most crucial. The certification agency, using evidence from the report, determines whether the facility meets NOP requirements before giving the green light for operations to commence. Mystic Foods intends to comply with all these requirements and acquire certification before beginning operations. 

B4. Management Structure 

The hierarchy of Mystic Foods begins with the founder who holds the topmost position at the company. He is followed by the company directors who may also hold a share of the company’s ownership. The number of directors may vary according to the characteristics of limited liability companies which allow the purchase of a percentage of the company to raise capital. The investor who purchases part of this company automatically becomes a director and takes part in the company’s decision-making process. Under the directors are the various departmental managers who are responsible for all the activities under their sections. 

CEO/ Founder 

The CEO is the ultimate leader in the company. The position of CEO at Mystic Foods comes with privilege as well as responsibility. As the founder of the company, the responsibility of steering the company to success falls squarely on the shoulders of the CEO. Thus, the CEO needs to be strategic, competent and goal-oriented. Other roles of the CEO at Mystic Foods will be to oversee the implementation of the company’s goals. Responsibility for internal controls in the company also falls on the CEO. In essence, the role of the CEO is to ensure the smooth running of the company’s activities by taking on a leadership role. 

Directors 

Directors also hold leadership positions in the company. However, their power and duties are limited to the authority and powered vested upon them. At Mystic Foods, the directors have a direct interest in the success of the company since they own a percentage of the company. Directors will safeguard the integrity of the company by enhancing the company’s positive image to the company. They will also maintain good relations with potential investors and negotiate on behalf of the company on matters regarding the company’s growth and operations. Additionally, financial decisions will also be made by directors. Thus, directors have a significant role in making key decisions that directly affect the company’s growth plans. 

Managers 

Managers are the link between the company’s staff and the top management. Managers at the company will be required to stay in contact with the supervisors and staff to ensure that employee satisfaction levels are high and also the views of employees are incorporated into decision making. However, the main responsibility of departmental managers is to ensure company operations that fall under their watch are running effectively (Risk Sears, n.d). They should also come up with strategies to improve these operations. 

B5. Products and Services 

Mystic Foods will produce ready to eat dried fruits and concentrated juice for the organic foods market. The products will be purely organic with no synthetic additives or preservatives. The main products of the company are concentrated juices which are derived from fresh fruits that are also processed into dry fruit products. Concentrated apple, mango and grape juice form over 70% of the company’s products. The juices are obtained from the organic fruits then concentrated using technology that preserves the nutrients and the flavors. The juice is then sweetened and packaged. Mystic Foods concentrated fruit juice is marketed as Mystic Drops. The juice is packaged in containers ranging from a quarter a liter to two liters. These juices offer a number of benefits to consumers including strengthening the body’s immune response by offering abundant vitamin C. The preserved natural flavor of the juice is also desired since it leaves no foul aftertaste like chemically prepared or preserved juices. 

More so, the company's dried fruits offer a lot of nutritional value. The company's dried fruit is prepared using organic mangoes, grapes, and apples. The fruits are cut into appropriate sizes then the moisture removed. Removal of moisture does not interfere with the nutritional value and the flavor. Interestingly, the dried fruit has a higher fiber content than fresh fruits. Mystic Foods dried fruits are marketed as Mystic Bites. The fruits are packaged in 250 grams to 1kg packages. The mixed dried fruits products are also expected to gain popularity in the market. The organic dried fruit offers the benefit of high nutrition value, low-fat content and wonderful taste. 

Market Analysis 

C1. Target Market 

America’s organic foods market has grown exponentially from $3.6 billion in 1997 to $26.7 billion in 2010 (Pelletier, Laska, Neumark-Sztainer, & Story, 2013). This represents a growth of 20% annually for that period. This growth is mainly attributed to changes in attitudes that have transformed the way view their health and how it affects their daily lives. In light of that, the organic foods market is predicted to expand as more people become conscious of their eating habits. Thus, Mystic Foods products will be designed and produced to fulfill this emerging need. The company’s main products are concentrated fruit juice and dried fruits. 

Concentrated fruit juice is produced from organic fruits which are sourced from reliable suppliers. The fruits are then tested to ascertain that they are organic before the juice production begins. The juice produced from the fruits is concentrated while maintaining its natural flavor using state of the art technology. No additives or preservatives are added. Each of the products, mango juice, grape juice, apple juice and mixed fruit juice is packaged into affordable quantoti3s and marketed as Mystic Drops. These products are different from most chemically preserved fruit products in the market. Preservation of its natural flavors also makes it a favorite for various age groups ranging from young people below the age of 30 years, middle-aged between 30 and fifty years and older people above 50 years. 

Additionally, Mystic Fruits other product is the dried fruits that are marketed as Mystic Bites. The dried fruits are also produced from organic fresh fruits. The production process is also designed to preserve the dietary constituents and the natural flavor of the fruit. Extraction of moisture from these products works towards the shelf longevity of the fruit. This also reduces the fat content of the fruit. The packaging is also convenient for young people and families since various sizes are provided. 

Thus, the target market for Mystic Foods products is young people who are distributed over the country. Young people below the age of 30 years portray the most potential for becoming long-term consumers of these products. Their dietary characteristics and attitudes towards organic processed foods show that they have preferences that favor the company's products (Pelletier, Laska, Neumark-Sztainer, & Story, 2013). These are mainly high school and college students who are knowledgeable of the health effects of chemical-based foods and aim to stay away from these harmful foods. Almost 90% of these population report preference for organic products (Pelletier, Laska, Neumark-Sztainer, & Story, 2013). Despite having such preferences, the characteristics of their current diet does not meet the minimum requirements of people who are often concerned about their food intake. There is a huge unexploited potential in this population. Given that the population distribution of this group is almost evenly throughout the country, the company needs to adapt distribution methods that serve the interests of this group. Additionally, advertisement strategies need to be based on media that is easily accessible by this target group. The most appropriate advertisement methods are social media platforms and product promotions. Distribution, on the other hand, should be sourced from a reliable player in the distribution industry who has the potential and resources to reach all parts of the country. The central location of Kansas City is an advantage in the distribution process since it allows for significant savings on costs. 

C2. Industry Analysis 

The organic food industry is rapidly changing. The industry emerged in the 90s due to changing attitudes towards processed foods and awareness on the dangers of consuming processed foods. Since then, the industry has experienced an unprecedented growth of almost 20% annually. (Monteiro, Moubarac, Cannon, Ng, & Popkin, 2013). In light of this trends, the organic processed foods industry has massive potential in the American economy. Due to this potential, there are concerted efforts to reap the full benefits of this industry. Extensive research has resulted in a new state of the art production methods that maximize the potential of machinery in the industry. These methods also preserve the natural flavor and taste of these foods. Importantly, technological advancement has reduced the cost of handling and processing these products, 

However, this potential has also served as a significant undoing in the industry. In the recent past, the organic processed foods industry has witnessed flooding of investor who wants a share of the organic processed foods industry share. As a result, stiff competition is experienced in the industry, with established brands continuing to dominate. Such brands include Walnut, Drienne's Gourmet Foods, and Albert's Organics. Though achieving a good market share and brand status is possible for Mystic Foods, the process is even tougher since the number of competing brands is higher than when the industry first emerged. Unsurprisingly, the competition and flooding have compromised the quality of products in the industry (Załecka, Bügel, Paoletti, & Kahl, 2015). Organic processed foods are consumer-oriented. Thus the quality of the product together with the processing methods need to adhere to industry standards and maintain a good quality of products. However, this is not always the case as some processors lack the equipment and expertise to carry out the processes. Thus, the products are of low quality and unappealing to customers. 

Again, challenges of authentication are common in the organic processed foods industry. Despite the industry's strict certification and monitoring, some unscrupulous producers of organic foods apply production methods that do not meet US Department of Agriculture guidelines on farming (NOP, 2018). Thus, processors are supplied with foods that are not wholly organic. In case, the processing plant lacks the equipment and expertise to test the foods to make sure they meet the standards; customers end up consuming foods that are labeled organic but are not. Mystic Foods will put up measures to ensure that the fruits supplied are from reliable producers and are also tested for integrity. Processors also need to ensure that their methods of production do not affect the quality of the products. Ongoing research is expected to seal the loopholes that result in undesirable products reaching the market. Undoubtedly, the organic processed foods industry is on a growth trajectory, and Mystic Foods' goal is to achieve growth through market penetration. 

C3. SWOT Analysis 

S (Strengths)  1. Availability of state of the art equipment.  2. Ability to source for capital.  3. Availability of skilled staff.	W (Weaknesses)  1. An emerging brand name.  2. No economies of scale.  3. Large production costs.
O (Opportunities)  1. Industry potential.  2. Government goodwill.  3. Technological improvement.	T (Threats)  1. Stiff competition.  2. Conniving producers.  3. Poaching of skilled labor.

Strengths 

The type of equipment used in an industry determines the cost of production and quality of the product. Availability of state of the art equipment at Mystic Foods implies that good quality products will reach customers thus enhancing the company’s image. Also, the company’s ownership structure allows for sourcing of capital for growth. As a limited liability company, Mystic Foods will be able to sell a percentage of the company’s ownership rights to an investor thus providing capital for expansion. Skilled staff, on the other hand, determine the success of a company’s production methods. Competent managers and directors make the right decisions that contribute towards the company’s success will other employees input their skills to make sure the company meets its goals. 

Weaknesses 

Establishing a brand name is one of the major goals of the company. A good brand name contributes towards sales by enhancing the brand image. Mystic Foods will enter the market as an emerging brand. Thus caution is required in the process of establishing a brand name. Any errors at this stage are difficult to recover from. Additionally, the company does not enjoy large economies of scale like some established processors. As a result, the cost of production per item is slightly higher than the larger companies. This affects process since the large companies make more profit per unit of production when compared to Mystic Foods. Due to the company’s focus on satisfying the needs of consumers, quality is of the essence in the production process. Maintaining good quality product requires the hiring of highly skilled personnel and application of sophisticated production methods that increase the cost of production. 

Opportunities 

Organic processed foods are gaining popularity in America due to shifts in attitudes and preferences (Siedel, 2016). This trend is encouraging for organic foods processors since it offers opportunities that can be exploited by companies like Mystic Foods to achieve success. Again, the trend is not expected to change in future. By applying the right strategies, the company’s management can steer it to unprecedented success. Also, advancement in technology is an opportunity that mystic Foods must utilize improve the quality of its products and also reduce production costs. Research on the best methods of production is also vital since it advances knowledge on the methods that the company can apply. Advocating for healthy living by the government works in favor of the company since most people turn to organic foods to fulfill this need. Consequently, sales of the company’s products increase. 

Threats 

These are external influences that negatively affect the company’s activities. Stiff competition in the organic processed foods industry is undesirable since it slows down or hinders the company’s plans to achieve its goals. Mystic Foods plans to establish a brand name to rival established companies in the industry. Strategies must, therefore, be formulated that take into account the influence of competitors in this quest. The integrity of producers in the organic foods industry is also a matter of concern (Załecka, Bügel, Paoletti, & Kahl, 2015). Conniving producers apply farming methods that do not meet the standards of production of organic foods. In the long run, the quality of products reaching customers from the factory is low. Another threat that the company faces is poaching of skilled labor by established companies who promise the employees better rewards. Thus, Mystic Foods is forced to train its staff. 

D. Marketing Strategy 

D1. The product, Price, Promotion, and Place (4Ps) 

Price 

Pricing strategies at Mystic Foods aim at achieving a greater market share through market penetration, maximizing profits and staying ahead of competitors (Singh, 2013). Achieving these objectives requires the application of pricing strategies that are suited for the company’s products. Pricing strategies have a much higher influence on the company, not just profits. Pricing determines the wages paid to employees, availability of capital to expand and investor interest. Thus, selection of an effective pricing strategy in relation to the company’s products contributes to the success of the company. Pricing also affects customer relationships. Pricing strategies that are favorable to the customers help to build trust and establish the brand of the business. 

In light of that, Mystic Foods needs to select a pricing strategy that meets the needs of consumers and also helps in achieving the goals of the company. For a highly competitive market like the organic processed food industry, cost-based pricing as per competition is desirable (Singh, 2013). This pricing method demands that the firm performs adequate market research to establish the pricing strategies of competitors and the reasons for such strategies. Considering that most food stores and supermarkets stock these products in one section of the store, customers have the time to sample the products and select the one that suits their needs. Thus, the company needs to apply strategies like discounts. Mystic Foods needs to price its products slightly lower than competitors to ensure that profit targets are met, and also high sales volumes are achieved. Competitive pricing sets the products apart from those of competitors and enhances market penetration strategies. 

Product 

Type and nature of the product are essential in assessing the possibility of success the market. The product needs to meet the needs of the customer and also reflect the image of the company. In that regard, Mystic Foods products need to be of the highest quality in the market and also differentiated to reflect the company's image. Achieving the best quality organic processed products requires the input of two major aspects. The quality of raw materials used in the production process and the processing that takes place in the plant. Quality of raw materials used determines the end product. The organic processed foods market is consumer-oriented, thus achieving the best quality product is vital to the success of the company. As a startup, Mystic Foods Products need to meet consumer expectation and therefore enhance the company's goal of building its brand. The fruits sourced from supplies need to be fully organic. This ensures that the company meets all the industry standards and avoids any legal implications of failing to comply with the standards. 

Furthermore, the production process also contributes towards the quality of products. Organic processed fruits need to retain the natural flavor of the fruit. Thus, production techniques together with employees must ensure that this purpose is achieved. Consumers expect to reap the maximum benefits of organic foods from these products. These benefits include high nutrient levels without any additives, low-fat content and natural flavor. Use of state of the art equipment in the production of Mystic Foods concentrated juice and dried fruits is essential in meeting these customer needs. 

Promotion 

Promotion of the company’s products serves to increase awareness of the product and also shift consumer preferences towards the product. Thus, promotional strategies chosen by the management must be ideal for convincing the customers to purchase the products. Inherently, organic processed foods retail in the US at prices that are higher than the conventionally processed products (Bezawada & Pauwels, 2013). However, most consumers are willing to purchase these products at that price. In this case, the strategy should aim to convince those who are unwilling to purchase at that price to buy while at the same time make the existing customer purchase more of the company’s products. Price promotions can achieve this goal by offering these products at lower prices (Bezawada & Pauwels, 2013). 

Another promotion strategy is focusing on the benefits of the products. Most potential customers are not aware of the health benefits of organic foods. Thus, advertisements should specify these benefits to the audience. Given that the target market for the products is young people mostly below 30nyears, extensive web advertising will reach a wider audience. 

Place/ Distribution 

Mystic Foods intend to sell its products to all regions in the country. Such an ambitious plan for a startup company is not only costly but offers challenges considering the geographical regions where the products are supposed to reach. Thus, outsourcing the services of a distribution company in the initial stages is appropriate since it will save on the cost of transport. Important to note that, most organic processed foods in the US are purchased in supermarkets (Bezawada & Pauwels, 2013). Thus, the distribution strategy must ensure that the products reach warehouses where these retailers can easily purchase the goods. The distribution channels for the company’s goods also need to be reliable to ensure all areas of the country have a constant supply of the products. Therefore, achieving effective distribution strategies aids in the growth of the company since targeted sales are achieved, leading to high profits. 

D2. Price List 

Mystic Foods Price List
Product	Quantity	Price (USD)
Mystic Drops Apple	0.25 liters	2
Mystic Drops Apple	0.5 Liters	3..75
Mystic Drops Apple	1 Liter	6
Mystic Drops Apple	2 liters	10
Mystic Drops Mango	0.25 Liters	1.75
Mystic Drops Mango	0.5 liters	3
Mystic Drops Mango	1 liter	5.5
Mystic Drops Mango	2 liters	9
Mystic Drops Grapes	0.25 liters	2
Mystic Drops Grapes	0.5 liters	3.75
Mystic Drops Grapes	1 liter	6
Mystic Drops Grapes	2 liters	10
Mystic Bites (Dried Fruit)	0.25kg	1
Mystic Bites (Dried Fruit)	0.5 kg	2
Mystic Bites (Dried Fruit)	1 kg	3.75
Mystic Bites (Dried Fruit)	2kg	6

D3. Promotional Strategy 

Date	Target	Responsibility
May 1, 2018	Product launch at six locations in the country. Marketing teams to demonstrate the products to potential customers at the food stores	Marketing manager
May 1, 2018	Contact social media influencers on Twitter, Facebook, and YouTube to advertise the product in concurrence with the launch.	Marketing Communications Manager
May 15, 2018	Begin aggressive web campaigns through blogs and social media	Marketing manager.
June 1, 2018	Commence price promotion in retail stores and supermarkets in all regions of the country.	Marketing Committee.
June 1, 2018	Liaise with institution throughout the country to carry out promotions. These promotions target high schools and colleges	Marketing agents
July 1, 2018	Assess the impact of web marketing campaigns and make improvements or changes where they are appropriate.	Marketing manager
August 1, 2018	Consult advertising firms for unexploited marketing channels for the company’s products.	Marketing committee.

D4. Sales Forecast 

May	June	July	August	Sept	Oct	Nov	December	Jan	Feb	March	April
$12,000	$12,500	$14,000	$14,000	$14,500	$15,000	$16,0000	$16,000	$16,500	$18,000	$19,000	$20,000

Market Conditions 

Since the company is a startup, the first few months after the launch of the products are expected to have low sales. However, due to marketing activities at the time of the launch, the first few months are expected to register sales of above $10,000 per months. As marketing activities continue to become diversified and new regions are explored, the sales are expected to grow for the next 12 months until they hit the $20,000 target. Aggressive marketing strategies especially web advertising and schools promotions should result in high sales in the first year of business. Increase in sales should also be attributed to industry growth. More awareness on the benefits of organic processed foods will win more customers hence increase the company’s sales. 

Implementation Strategy 

E1. Overall strategy 

Goals	Date
Meeting with the company’s legal advisors to draft the legal requirements for beginning operations. All the requirements including USDA guidelines for organic processed foods plants. All the licenses and operating permits to be discussed. Commencement of the process of acquiring the legal documents.	April 1, 2018
Obtain NOP's license for opening the processing plant. The processing begins with an application for the permit before an inspector is sent to perform an assessment. After the assessment, a report is filed, and operations approved (NOP, 2018) .	April 15, 2018
Setting up of the company’s website. This is where interaction between customers and customer relations staff will occur. Customers will also be informed about the company’s products.	April 15, 2018
Setting up of the company’s accounts and tax compliance requirements	April 15, 2018
Recruitments of staff to fill vacant positions in the company. Recruitment will be based on experience, potential, and understanding of the tasks expected of the employee. Recruitment will be conducted by the founder together with the HR manager.	April 30, 2018
Completion of the headquarters setup together with final touches on the production plant. All equipment and machinery needed to be in place.	April 15, 2018

E2. Monitoring Plan 

The monitoring plan for mystic Foods is formulated by the founder and company directors to ascertain that all operations in the company are according to laid down targets on paper. Monitoring is also meant to avoid derailments of the company's mission and vision. Among the key areas of the monitoring plan are plant operations, company finances, sales and marketing strategies and their operations, innovations, and trends, customer needs and employee satisfaction. 

Plant Operations : Plant operations form an essential part of the company business. Monitoring ensures that the processes are carried out according to standards set out for the industry. Furthermore, plant operations need to be aligned with the company goals. A monthly assessment of these operations is vital. 

Company finances: Proper handling of company finances ensures computation of expenses and incomes is correct, and employees are paid on time. Inventories management is also an essential aspect of operations. Bimonthly review of these finances is necessary. 

Sales and Marketing : sales and marketing strategies ensure the company stays in business and can stay ahead of competitors. Achieving sales targets emanates from the efforts of the marketing department. A review of these strategies on a monthly basis ensuring that the business aspect of the company is not compromised. 

Innovations and Trends : The research and extension manager will provide a brief of trends and innovations after every three. The directors will then decide on the innovations that are worth adapting to Mystic Foods. 

Customer Needs : The emerging needs of the customer together with improvements required will be done on a monthly basis. Adjustments in processing and service delivery will be effected to meet these needs. 

Employee satisfaction : The attitudes of employees towards their job determines that company’s ability to meet its goals. A quarterly assessment of these needs by directors will ensure that their needs are looked into to ensure excellent employee satisfaction levels. 

Monitoring Activity	Period	Responsibility
Review of customer needs in the market.	Monthly	Marketing manager
Assessment of pricing strategy in comparison to competitors	Monthly	Sales manager
Review of sales and projection	Monthly	Sales manager
Assessment of the company’s financial position and growth	Quarterly	Directors

G. Financial Report 

G1. Financial Projections 

Mystic Foods intends to achieve a market share of 5% in the next five years. Achieving this objective requires careful planning of the company’s operations and setting financial goals that are realistic. The first-month operations are not expected to be accompanied by significant profits due to initial expenditure in setting up the company and much less awareness of the company's products. However, continued marketing strategies will lead to increased sales hence revenues will increase resulting in achievement of the company's targeted net profit of $20,000 by the end of the first year. Operating expenses, though high in the first month will be kept at below 12,000 in the first year. Employee wages will remain constant, with slight fluctuations due to rewards to employees who meet specific targets. 

Financial Assumptions 

• Revenue estimation is based on the expected sales of the products. Projected sales of above 50,000 are appropriate for the business due to its size and products. 

• Taxes are estimated at around $2000 due to the revenue. 

• The company’s employees ranging from 20-30 will attract salary expenses of around $6000 monthly. 

• The founder has invested $159,000 in starting the company. 

G2. Financial Position 

Mystic Foods first month of operations will result in losses of $1500 due to pre-launching expenses for the company. However, the profits are set to increase because of product marketing and industry growth. The following months will be followed by profits of $500 and an increase in profits in the months that follow. Increase in profits will be due to efforts to establish the company brand through aggressive advertisements and product promotions. Given the expected growth of the company, earnings for the first year will be ploughed back. 

G3. Estimated Capital/Investment Needs 

The owner's investment of $159,100 in the startup is enough for commencing operations. The amount covers all expenses before operations begin. The amount also offsets the losses from the first month of services. Due to the company's growth plans, future investments are necessary. Profits from the first year of operations will be invested back into the business. Another source of capital is the sale of a percentage of the company's ownership to investors. The funding is for acquiring land and machinery for operations. 

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