Thus, total tons of harvest will amount to 2,434. 783 tons of total harvest per year. 280 tons of raw potatoes X 100,000 number of harvest = 2,434. 783 tons of total harvest 11,500 hectares *** 2,434. 783 X 5% = 121.
74 tons The number of hectares and tons of raw potatoes will depend on the production and net profit. By 2020, the company is expected to be producing and selling 289 tons of chips per year.New suppliers for the other raw materials will be taken so as to act on the old suppliers that have ruptured old inter-regional ties. These new suppliers will be of from the local market. But the expense to be governed and the quality of the materials will be taken in great consideration as well. A new establishment is to be developed that will include the product equipment which amounts to $ 803,600 for the purchase.
The production line requires a 200 square meters of land having a height off 3 meters.Storage buildings for raw materials and packaging materials will also be developed which should be accessible and safe to avoid rotting of raw materials and other materials to be affected by temperature, atmosphere, climate or environment. The equipment or production line is capable of processing 400 kg (400,000 g) of potatoes per hour, resulting in 100 kg (100,000 g) of finished potato chips per hour. Thus, for 8 hours of shift in one day, a total of 800 kg (800,000 g) will be produced per day, resulting in 5,600 kg (5,600,000 g) of potato chips produced per week.
The whole production team will include an expert from Florigio to manage in the production line, a local manager to manage the whole potato chips processing and as well as ensuring the safeness and freshness, as well as proximity in the amount of the final products. Instead of a 22-person staff for the team, an additional of 10 more employees will be needed to have a faster production of the potato chips. Finished products will be packaged in 100 gram plastic packets made of polypropylene having the company’s logo. High quality of the packaging aterial must be considered to ensure the chips to remain fresh for up to 6 months.
Since the company’s new goal is to capture not only the local market, but as well as the international market, the packaging details will be in Russian for the products distributed in the local market while product and company information will be in English for the ones to be distributed in the international market. MARKETING AND FINANCE Troika is set to produce cheaper-priced potato chips, but of high quality of products. Troika chips will be distributed through Baikal’s network throughout the whole region.Then after a few years, a new distribution network will be of concern to distribute the Troika chips in the international market. Troika chips will be priced still the same of 30% cheaper than other international potato chips products and 10%-15% lesser than the local ones.
The wholesale price of $0. 4125 remains the same which will make the product remain competitive under the market and affordable for almost all of the population in the region. And a wholesale price of $0. 564 will be given once products are exported to the international market.
Additional amount in price will at least, cover the expenses done for the distribution and transportation of products. *Total sales for potato chip by year-end then will result to: (Local Market) 12100 g x $0. 4125 = $4,991. 25 sales per year (excluding expenses and production costs) *Total sales for potato chip by year-end then will result to: (International Market) 12100 g x $0. 564 = $6824. 4 sales per year (excluding expenses and production costs) To attract consumers, the packaging will be in multi-color polypropylene packages that will show the company’s brand name, “Trokia”.
Its resistance to bacterial growth makes it suitable for guaranteeing the freshness and quality plus the safety in consuming of the potato chips. The packaging will display the product’s information and company details in English and Russian. Troika chips will be promoted through different advertising campaigns including television, radio, newspapers and other media. Additional advertising expenses will be considered for the international market as well, to better promote the potato chips products.
By a few years, local competitors will arise thus, additional advertisements will be made.
