The Pasta Tree is the only fresh pasta retail producer in the city of Springfield. The Pasta Tree has sold fresh pasta products at its own shopfront as well as in five local natural food stores over the last three years. 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 made possible by an initial investment from $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 supermarkets in Springfield. More than thirty-five smaller grocery store serve the surrounding areas and new suburban neighborhoods. The Pasta Tree is required to double production in order for it to meet the increasing demand. Only a portion will be possible through owner funding or internally generated cash flow. Pasta Tree will receive a $50,000 loan to finance the expansion and renovation of its production facility. The projected sales for the next three-years are based upon current sales success in Springfield with its target customer base.
This plan will see sales revenues increase to nearly $420,000 by year 3.
Pasta Tree is situated in a 3,000-square-foot facility. This facility serves two purposes: as a shopfront and as a production facility. The expansion will see production take up 3/4 of the space. $10,000 will be required to prepare the new production space. An additional $30,000. will be spent on the purchase of new equipment. To meet the increased demand, the company must also upgrade its packaging equipment. The cost of this upgrade will be $10,000
Pasta Tree’s new marketing campaign will be launched in supermarkets and grocery store that carry its products. To attract new customers, we created eye-catching in-store displays. The displays will also hold discount coupons to promote sales to new customers.
The Pasta Tree will become a major sponsor of The Canal Run, which raises money for children’s cancer research.
1.1 Objectives
The Pasta Tree’s goals are:
- Increase production without compromising product quality
- Establish strong sales in major supermarket chains around the city.
- Ensure cost control and efficiency during expansion.
1.2 Mission
The Pasta Tree’s mission is:
- Quality: Our products are the highest quality and the freshest pasta available to the consumers.
- Value We offer more value to consumers with healthy products that have incredible flavor.
- Integrity Our customers rely upon the quality of our pasta products. Trust in The Pasta Tree is built on our commitment to the highest standards. Our customers will be satisfied with our products.