MANAGEMENT ACCOUNTING PROJECT WORK CHOCOA CHOCOLATES by BLUEBERRY INDUSTRIES

SUBMITTED TO: ANUBHA GUPTA

SUBMITTED BY: RICHA SHARMA RACHITA DASH V.SATYA DEEPAK GAURAV JAIN

ACKNOWLEDGEMENT
The satisfaction and euphoria that accompany the successful completion of any task would be incomplete without mentioning the name of the people whose constant guidance and encouragement has crowned our efforts with success. Firstly, we would like to thank our faculty Dr. Anubha Gupta for giving us her precious time and guidance that helped us a lot in completing this project. Last but not the least we would like to thank each and every group members for their support and hard work, without which this project would never have been completed successfully.

TABLE OF CONTENTS

y y y y y y y y y y y

History of chocolates Process of making chocolates Ingredients of chocolates Company profile Business plan and strategy Competitive brands in the market SWOT analysis Cost sheet Analysis Scope in the market Conclusion

HISTORY OF CHOCOLATES
The origin of chocolate can be traced back to ancient Maya and Aztec civilizations in Central America, who first enjoyed chocolate a much prized spicy drink made from roasted cocoa beans. Throughout its history, whether as cocoa or drinking, chocolate beverage or confectionary treats. Chocolate has been much a sought food.

FIRST CHOCOLATE FOR EATING

It was an English doctor, Sir Hans Sloane, who after travelling in South America focused on cocoa and food values, bringing milk chocolate recipe back to England. The original Cadbury milk chocolate was prepared according to this recipe.

COMPANY PROFILE
The name of the company is BLUEBERRY INDUSTRIES which introduced CHOCOA chocolates. The company got listed in NSE in 2010 and has decided to launch a new chocolate in Indian market by the name of CHOCOA.

OWNERSHIP OF THE COMPANY

The company commences its business under the ownership of Richa Sharma, Rachita Dash, V Satya Deepak and Gaurav Jain.

START UP SUMMARY
This is unique in its category as it has peanuts as well as preserved fruits and dry fruits coated in milk chocolate with butter , honey and oats that not only makes it tasty or say delicious but also healthy as well.. This chocolate is available in different packs of 15gm, 35 gms, 65 gms and jumbo pack of 125 gms. This chocolate is launched in a way so that it suits the middle class pocket and low call of

people as well. The JUMBO pack of this chocolate is the biggest chocolate available in the Indian market.

PLACE OF BUSINESS OPERATION

The place of business operations would be Delhi, Mumbai and Bangalore having our head office located at New Delhi with total budget of Rs 72, 00, 000.

COMPANY OBJECTIVES
a) Consolidate its position financially. b) Meeting breakeven point at the commencement of the business. c)To earn maximum profit in minimum time and improve the required infrastructure that helps in meeting the objective of the company and helps in external profit also.

LONG TERM GOAL:After the successful completion of around 10 years the company would have enough money to invest in new areas and for the extension of the business further. In short long term goal of the company can be summarized as follow:-

a) Extension of its wings in innovating new flavors and drinks b) Establishment of new industry oriented to the basic business. c) To be recognized as a one of the prestigious company across the country and further in multi nations.

BUSINESS PLAN AND STRATEGY

Since the chocoa chocolates has been launched under a new company BLUEBERRY industries so we need to struggle to make a major impact in todays competitive market that is blooming day by day. Firstly, to attract the target audience towards the chocolate product the company will place a low promotional price or say introductory offer for time being and will also distribute free samples in the market to make feel the customers of the pure chocolates and milk coated peanuts and dry fruits as well.

The target audience for our product will not only the younger generation but middle aged group as well as our chocote promises a healthy snack as well because of low fat sugar and unsaturated fat. Also the company has decided to launch this chocolate before Christmas so that the audience can taste it earlier and can be used for gift purposes as well on the occasion of Christmas and New Year. The company will also launch the Santa gift pack for Christmas and New Year which contains not only the CHOCOA chocolates but real dry fruits as well. The packs are especially designed to be sold at the time of Christmas and New Year. Before these occasions the company will also be launching the small pack worth Rs 15 and Rs 10 so that the pricing will attract the customers. There will be special offers for the occasion of Christmas, New Year and other occasions as well. For us the main concern will be the advertisement and promotion of CHOCOA and then making sure the customers get the perfect taste that has never been tasted by them. The main aim of the company is to make our product the Best making it almost certain that this bar will occupy its own market segment and make something different from other confectionaries. If promoted correctly, stressing the point that the bar will be a big hit in the market and adding

the factor that it is healthier will arouse peoples attention and curiosities. The main thing that CHOCOA chocolates should try to do is to make the consumers think our product is different and special compared to regular chocolate. If executed correctly this strategy will ensure a good entrance to the market.

COMPETETIVE BRANDS IN THE MARKET

y Nestle y Cadbury

SWOT ANALYSIS
STRENGTHS:
y The company is a respected employer that values its workforce y It is cheap in comparison to other chocolates y The company provides better quality of chocolates at competitive prices y Best location for this business operation.

y New customers can also be accessed due to being situated at market hub

WEAKNESS:
y Transportation and its cost giants because of the companys size y Production costs are high y Chocolates although with unsaturated fat cause health problems

OPPURTUNITIES:
Expansion onto each and every region of the country Increase in control over their market segment Acquisition of more reputed brand names Expand product range in order to target multiple user groups y Production of sugar free chocolates y y y y

THREATS:
y Increased taxes on goods especially beverages and confectionary goods y Rise of transportation prices y Higher WPI y Inflation

y Cadbury and nestle and other companies as well who strive for market leadership y Change in the laws that inhibit production or sales in anyway.

It is assumed that company is having one core rupees as capital at the time of business commencement so the company can have financial assistance from SBA (Small business administration) if required in future.

Break -even point analysis:The company has chances of reaching breakeven point at the moment it starts bidding and get success in delivery of goods. Still it is always good to assume to reach the breakeven point after six months of commencement of the business.

COST SHEET FOR THE MONTH OF DECEMBER

Total output = 450,000 units

PARTICULARS

COST PER UNIT

TOTAL COST

Raw materials Sugar = 300,000 Cocoa butter = 300,000 Peanuts = 200,000 Milk solids = 200,000

5 .16

23,20,000

Chocolate coated raisins = 400,000 Almonds = 300,000 Vanillin = 100,000 Honey = 50,000 Boston baked beans = 150,000 Direct labor = 700,000 Carriage on materials = 242,500
PRIME COST

1.56 0.53
7.25

700,000 242,500
32, 62,500

FACTORY EXPENSES:
a) Fixed :
Depreciation on plant and machinery = 257,500 Rent = 150,000 Power mad consumable stores = 150,000 Factory insurance = 150,000 Supervisors salary = 50,000 10, 57,500 2.35

b)VARIABLE:
Electricity charges = 50,000 Power and consumable stores = 100,000 Running expenses of machine = 150,000
FACTORY COST 20,000 9.60 43,

OFFICE AND ADMINISTRATIVE EXPENSES

Office and staff salary = 10, 00,000 Rent= 80,000

Computer = 120,000 Furniture= 300,000 4.40 19, 80,000 Telephone = 3,000 Carriage outward = 20,000 Depreciation on furniture = 50,000 Salaries to administrative staff = 370,000 Rent, rates and taxes = 30,000
OFFICE AND ADMINISTRATIVE COST: 14.00 00,000 63,

SELLING AND DISTRIBUTION EXPENSES

Advertisement (print and by local TV channels) = 400,000 Petrol = 100,000 900,000 Delivery vehicles = 250,200 Maintenance of delivery vehicles = 49,800 Packing rates = 50,000 Bad debts written off = 100,000
TOTAL COST NET PROFIT (20% ON SELLING PRICE) 16.00 4.00 72, 00,000 18, 00,000

2.00

SALES

20.00

90, 00,000

The company is producing 450,000 units of chocolates at the rate of Rs16 for which we are incurring the total cost of 72,00,000 and the total sales is 90,00,000 which implies that we are having the profit of 18,00,000.

The company is producing a single unit of chocolate at the rate of Rs20 which includes the cost of chocolate as Rs 16 which again implies that the profit of Rs 4 is gained on the single unit of chocolate. Since the company is earning some percentage of profit over cost price it means increasing cost can be a favorable condition for the company as it will only lead to higher price for the product and higher profit. Since the company is earning profit so our business is feasible to launch over. According to our market survey in India it is found that 90% of people consumes chocolates and 42% consumers are of the age group 10-20 and 33 % consumers are of age group 21-30 thus, this chocolate has a great scope in Indian market but we need to focus on brand binding in order to get this huge market.

It is also found that the most important aspect that a consumer keeps in mind while buying the product is the flavor, quality and packing and our CHOCOA has prioresses these aspects the most to capture the market and compete with the industries of same kind. The best thing or say strength of our product is its distinct taste and its marketing strategy. We promise to give value for money product to the consumers.