Noodles Nadine Gray Brad Olynick Kyle Bergen. AgEc 75.6 College of Agriculture & Bioresources, University of Saskatchewan Introduction Proposing the idea.

NoodlesNoodles

Nadine GrayBrad OlynickKyle Bergen

AgEc 75.6 College of Agriculture & AgEc 75.6 College of Agriculture & Bioresources, University of Bioresources, University of

SaskatchewanSaskatchewan

IntroductionIntroduction

Proposing Proposing the idea of an egg noodle the idea of an egg noodle processing facility processing facility

Plant to be located in SKPlant to be located in SK

Plan to create an egg noodle that is low in Plan to create an egg noodle that is low in cholesterol, low in fat and high in protein.cholesterol, low in fat and high in protein.

AgEc 75.6 College of Agriculture & AgEc 75.6 College of Agriculture & Bioresources, University of Bioresources, University of

SaskatchewanSaskatchewan

Operations PlanOperations Plan

AgEc 75.6 College of Agriculture & AgEc 75.6 College of Agriculture & Bioresources, University of Bioresources, University of

SaskatchewanSaskatchewan

Organizational StructureOrganizational Structure

Board of Directors

General Manager

Sales ManagerSecretaryOperations Manager

Plant Workers

AgEc 75.6 College of Agriculture & AgEc 75.6 College of Agriculture & Bioresources, University of Bioresources, University of

SaskatchewanSaskatchewan

Lot LocationLot Location

AgEc 75.6 College of Agriculture & AgEc 75.6 College of Agriculture & Bioresources, University of Bioresources, University of

SaskatchewanSaskatchewan

Site PlanSite Plan

AgEc 75.6 College of Agriculture & AgEc 75.6 College of Agriculture & Bioresources, University of Bioresources, University of

SaskatchewanSaskatchewan

Facility Floor PlanFacility Floor Plan

AgEc 75.6 College of Agriculture & AgEc 75.6 College of Agriculture & Bioresources, University of Bioresources, University of

SaskatchewanSaskatchewan

Process FlowProcess Flow

AgEc 75.6 College of Agriculture & AgEc 75.6 College of Agriculture & Bioresources, University of Bioresources, University of

SaskatchewanSaskatchewan

Business CycleBusiness Cycle

Business Hours – 8:00am – 5:00pmBusiness Hours – 8:00am – 5:00pm 6.5 hours of processing each day6.5 hours of processing each day

Employees have two 15 min breaks and a half Employees have two 15 min breaks and a half hour lunch break hour lunch break

Plant workers spend 30 min a day for clean upPlant workers spend 30 min a day for clean up

Potential output:Potential output:– 3500 Kg/day – 910,000 Kg/year3500 Kg/day – 910,000 Kg/year

AgEc 75.6 College of Agriculture & AgEc 75.6 College of Agriculture & Bioresources, University of Bioresources, University of

SaskatchewanSaskatchewan

Standards & RegulationsStandards & Regulations

follow guidelines of the Canadian Food follow guidelines of the Canadian Food Inspection AgencyInspection Agency

meet HAACP and ISO 9001: 2000 meet HAACP and ISO 9001: 2000 standards and regulations standards and regulations

will also have to meet FDA standards in will also have to meet FDA standards in order to ship to the USAorder to ship to the USA

AgEc 75.6 College of Agriculture & AgEc 75.6 College of Agriculture & Bioresources, University of Bioresources, University of

SaskatchewanSaskatchewan

Investment RequirementsInvestment Requirements

Capital Budget SummaryCapital Budget Summary

- Land $ 218,832- Land $ 218,832

- Building Cost $ 264,675- Building Cost $ 264,675

- Equipment $ 309,426- Equipment $ 309,426

- Working Capital $ 436,443- Working Capital $ 436,443

Total Capital Required $ 1,118,408Total Capital Required $ 1,118,408

AgEc 75.6 College of Agriculture & AgEc 75.6 College of Agriculture & Bioresources, University of Bioresources, University of

SaskatchewanSaskatchewan

Human Resources PlanHuman Resources Plan

AgEc 75.6 College of Agriculture & AgEc 75.6 College of Agriculture & Bioresources, University of Bioresources, University of

SaskatchewanSaskatchewan

Saskatchewan Egg Noodle Saskatchewan Egg Noodle Employee’sEmployee’s

General ManagerGeneral Manager

Sales Manager Sales Manager

Operations ManagerOperations Manager

SecretarySecretary

Plant WorkersPlant Workers

AgEc 75.6 College of Agriculture & AgEc 75.6 College of Agriculture & Bioresources, University of Bioresources, University of

SaskatchewanSaskatchewan

Training ProgramsTraining Programs

All employees will be required to obtain All employees will be required to obtain their CPR/First Aid certificatestheir CPR/First Aid certificates

Sales Manager will be required to attend Sales Manager will be required to attend sales seminarssales seminars

Plant Workers are required to obtain a Plant Workers are required to obtain a forklift licenceforklift licence

AgEc 75.6 College of Agriculture & AgEc 75.6 College of Agriculture & Bioresources, University of Bioresources, University of

SaskatchewanSaskatchewan

Marketing PlanMarketing Plan

AgEc 75.6 College of Agriculture & AgEc 75.6 College of Agriculture & Bioresources, University of Bioresources, University of

SaskatchewanSaskatchewan

The 4 P’sThe 4 P’s

PromotionPromotion– Enriched with Omega-3 fatty acidEnriched with Omega-3 fatty acid– Zero trans fatsZero trans fats– Enriched with pea hull flourEnriched with pea hull flour– Western Canadian madeWestern Canadian made

PlacePlace– Small health food storesSmall health food stores– Large grocery chains throughout Western Large grocery chains throughout Western

CanadaCanada

AgEc 75.6 College of Agriculture & AgEc 75.6 College of Agriculture & Bioresources, University of Bioresources, University of

SaskatchewanSaskatchewan

The 4 P’sThe 4 P’s

ProductProduct– Egg NoodlesEgg Noodles

PricingPricing– SEN will be price takersSEN will be price takers– Large competitors dictate priceLarge competitors dictate price– Small premium charged for nutritional Small premium charged for nutritional

benefitsbenefits

AgEc 75.6 College of Agriculture & AgEc 75.6 College of Agriculture & Bioresources, University of Bioresources, University of

SaskatchewanSaskatchewan

SegmentationSegmentation

Large scale grocery chainsLarge scale grocery chains

Independently owned grocery storesIndependently owned grocery stores

Health and nutritional outletsHealth and nutritional outlets

AgEc 75.6 College of Agriculture & AgEc 75.6 College of Agriculture & Bioresources, University of Bioresources, University of

SaskatchewanSaskatchewan

TargetingTargeting

Small health food outletsSmall health food outlets

Large grocery retailers such as:Large grocery retailers such as:– Sobey’sSobey’s– SuperStoreSuperStore– SafewaySafeway– Federated Co-opFederated Co-op

AgEc 75.6 College of Agriculture & AgEc 75.6 College of Agriculture & Bioresources, University of Bioresources, University of

SaskatchewanSaskatchewan

PositioningPositioning

A healthy alternative to regular pasta and A healthy alternative to regular pasta and other egg noodle brandsother egg noodle brands

Western Canadian madeWestern Canadian made

AgEc 75.6 College of Agriculture & AgEc 75.6 College of Agriculture & Bioresources, University of Bioresources, University of

SaskatchewanSaskatchewan

SWOT AnalysisSWOT Analysis

Physical ResourcesPhysical Resources

StrengthsStrengths WeaknessesWeaknesses

utilizes high quality raw materials grown utilizes high quality raw materials grown in Saskatchewan.in Saskatchewan.

The majority of the raw materials have a The majority of the raw materials have a long shelf life. This will help to eliminate long shelf life. This will help to eliminate waste. waste.

will be using Omega-3 eggs to produce will be using Omega-3 eggs to produce the egg noodles. This promotes a well the egg noodles. This promotes a well balanced diet.balanced diet.

The egg noodles will be enriched with pea The egg noodles will be enriched with pea flour thus creating a high fiber, high protein flour thus creating a high fiber, high protein product.product.

New building will be constructed so repair New building will be constructed so repair and maintenance costs should be low in and maintenance costs should be low in the start up years.the start up years.

Liquid eggs cannot be stored for long Liquid eggs cannot be stored for long periods of timeperiods of time

has opted to purchase used equipment has opted to purchase used equipment in order to save money. This may cause in order to save money. This may cause higher maintenance and repair expenses.higher maintenance and repair expenses.

Saskatchewan is a long distance away Saskatchewan is a long distance away from larger markets, costs to ship the final from larger markets, costs to ship the final product to larger centers across North product to larger centers across North America will be high.America will be high.

AgEc 75.6 College of Agriculture & AgEc 75.6 College of Agriculture & Bioresources, University of Bioresources, University of

SaskatchewanSaskatchewan

SWOT AnalysisSWOT Analysis

Human ResourcesHuman Resources

StrengthsStrengths WeaknessesWeaknesses

has a low labor requirement, this will has a low labor requirement, this will decrease salary expenses. decrease salary expenses.

Plant workers do not need to be Plant workers do not need to be extremely educated in the area of extremely educated in the area of pasta production.pasta production.

is located in an area with a high is located in an area with a high labor population. Therefore employees labor population. Therefore employees should not be hard to come by.should not be hard to come by.

employees will receive training from employees will receive training from a fully qualified engineer who is a fully qualified engineer who is familiar with the pasta processing familiar with the pasta processing equipment equipment

Low plant employee salaries do not Low plant employee salaries do not intrigue people to come and work intrigue people to come and work

is a new company that has no is a new company that has no reputation for a quality working reputation for a quality working environment.environment.

Sales manager and operations Sales manager and operations manager must be educated in their manager must be educated in their respective areas in order for it to respective areas in order for it to become successful.become successful.

AgEc 75.6 College of Agriculture & AgEc 75.6 College of Agriculture & Bioresources, University of Bioresources, University of

SaskatchewanSaskatchewan

SWOT AnalysisSWOT Analysis

Financial ResourcesFinancial Resources

StrengthsStrengths WeaknessesWeaknesses

Low equipment costs due to the fact Low equipment costs due to the fact that equipment has been previously that equipment has been previously used.used.

already has several interested already has several interested investors that will contribute to the investors that will contribute to the initial start up.initial start up.

Due to low cost of living expenses in Due to low cost of living expenses in Saskatchewan, employees will be Saskatchewan, employees will be attracted to join the Saskatchewan attracted to join the Saskatchewan workforce. This will create an even workforce. This will create an even larger work force to choose its larger work force to choose its employees from.employees from.

Large initial investments required.Large initial investments required.

Need a high rate of return in order to Need a high rate of return in order to cover initial start up costs.cover initial start up costs.

If there are not enough private If there are not enough private investors to cover costs, further investors to cover costs, further financing from a loan institution will financing from a loan institution will have to be considered. have to be considered.

AgEc 75.6 College of Agriculture & AgEc 75.6 College of Agriculture & Bioresources, University of Bioresources, University of

SaskatchewanSaskatchewan

SWOT AnalysisSWOT Analysis

ExternalExternal

OpportunitiesOpportunities ThreatsThreats

Large demand for pasta products, Large demand for pasta products, huge potential for egg noodles to huge potential for egg noodles to replace some of that consumption.replace some of that consumption.

Consumers are looking for products Consumers are looking for products that are healthy and are a part of a that are healthy and are a part of a well balanced diet. It will be catering well balanced diet. It will be catering to these consumer requests.to these consumer requests.

Large amount of pasta processing Large amount of pasta processing competitors already out in the market.competitors already out in the market.

Consumers are not informed about Consumers are not informed about the benefits of egg noodles over the benefits of egg noodles over regular pastas so may not make the regular pastas so may not make the choice to switch over to egg noodleschoice to switch over to egg noodles

must take care to follow all must take care to follow all government policies especially when it government policies especially when it comes to shipping regulations of non comes to shipping regulations of non egg products. egg products.

AgEc 75.6 College of Agriculture & AgEc 75.6 College of Agriculture & Bioresources, University of Bioresources, University of

SaskatchewanSaskatchewan

Market AnalysisMarket Analysis

Pasta consumption is constantly Pasta consumption is constantly increasingincreasing

Need to inform consumers of benefits Need to inform consumers of benefits over other pasta choicesover other pasta choices

In order to follow consumer trends, it has In order to follow consumer trends, it has opted to incorporate Omega-3 fatty acids, opted to incorporate Omega-3 fatty acids, zero trans fats and pea hull flour into their zero trans fats and pea hull flour into their egg noodlesegg noodles

AgEc 75.6 College of Agriculture & AgEc 75.6 College of Agriculture & Bioresources, University of Bioresources, University of

SaskatchewanSaskatchewan

CompetitorsCompetitors

AgEc 75.6 College of Agriculture & AgEc 75.6 College of Agriculture & Bioresources, University of Bioresources, University of

SaskatchewanSaskatchewan

Marketing StrategyMarketing Strategy

Sales and Profit ObjectivesSales and Profit Objectives

Channel of DistributionChannel of Distribution– Wholesale distributorWholesale distributor

Klondike Foods Inc.Klondike Foods Inc.

AgEc 75.6 College of Agriculture & AgEc 75.6 College of Agriculture & Bioresources, University of Bioresources, University of

SaskatchewanSaskatchewan

Marketing Plan BudgetMarketing Plan Budget

AgEc 75.6 College of Agriculture & AgEc 75.6 College of Agriculture & Bioresources, University of Bioresources, University of

SaskatchewanSaskatchewan

Financial PlanFinancial Plan

AgEc 75.6 College of Agriculture & AgEc 75.6 College of Agriculture & Bioresources, University of Bioresources, University of

SaskatchewanSaskatchewan

FinancingFinancing

AgEc 75.6 College of Agriculture & AgEc 75.6 College of Agriculture & Bioresources, University of Bioresources, University of

SaskatchewanSaskatchewan

Dividend PolicyDividend Policy

AgEc 75.6 College of Agriculture & AgEc 75.6 College of Agriculture & Bioresources, University of Bioresources, University of

SaskatchewanSaskatchewan

Production CostsProduction Costs

AgEc 75.6 College of Agriculture & AgEc 75.6 College of Agriculture & Bioresources, University of Bioresources, University of

SaskatchewanSaskatchewan

Sensitivity AnalysisSensitivity Analysis