How To Start A Tomato Sauce Business

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1. INTRODUCTION

The sauces and the ketchups are the typical western food, in which India has the influence from the British era. the fact is that Indian chutney of any kind is similar to that sauces and ketchups, but the sauces are mostly preferred and liked by people. There has been variety of the sauces available in different flavours, tastes, smell, sizes and even according to the food items. The variety arises from the dips, ketchup, chutneys, dressings and so many similar semisolid and thick liquids like sauces. The most famous among all the sauces is the tomato sauce and is served worldwide. This product comes under the consumer goods so doing the sauce manufacturing business is profitable and needed less investment.

2. CASE STUDY

The following are the case studies of the of sauce manufacturing business:

# KISSAN: This company now part of the Hindustan Unilever limited and started in 1993.this is one of the most renowned brands of the ketchup and sauces, serving variety of the flavours and the tastes. Their flagship product is the Kissan tomato sauce and ketchup also Kissan chilli sauce. This firm started in the British era and now onwards are in the market.

# HEINZ: This is an American company brand that much popular in India also. The company has the maximum shares in the European and united states market. But the one of the mostly sell ketchup, sauces, mayonnaise in India. The fine quality and the taste they served make them to captured the worldwide market.

3. BUSINESS SWOT’S ANALYSIS

i). Strength

• # To start the sauce making business is easy and requires low capital investment.
• # Tomato sauce making business is in much demand in India.

ii). Weakness

• # Sauce manufacturing business in India needed high maintenance, as due to regular FSSAI checking.
• # This business of sauce manufacturing business has poor quality of vegetable, due to the chemical’s pesticides used.

iii). Opportunity

• # Tomato sauce manufacturing companies for salein India has the opportunities in selling it online and vendor on B2B websites.
• # Sauce production business ideas has the scope in selling and adding stock in grocery stores, malls, community centres, food exhibition stalls.

iv). Threat

• # Sauce manufacturing business has the threat from market competition.
• # Sauce manufacturing business is facing the threat while transportation,due to breakage and leakage of bottles.

 

4. MARKETING PLAN

The following are the perspectives of the marketing of sauce manufacturing business:

1. # The initial stage in the marketing plan is the selection of the suitable location,where all the facilities and the raw material are easily delivered, and available abundantly.
2. # The promotion of the sauce manufacturing business can be done using the online social media,just by posting the product descriptions on the platforms and advertising them.
3. # There is other way of promoting of this business, that distributing the samples of the sauces in hotels, restaurants, cafeteria, canteens, food stalls, Chinese street food road side hotels and food truck etc.
4. # The distribution of the pamphlets and hoarding in the public places and near the grocery stores also has the advantage. The smart pricing of the sauces using the customer psychology tactics, benefits the business.
5. # There will be no compromising with the quality of the product and the raw material used to manufacture sauces.

 

5. SUPPLY CHAIN MANAGEMENT

The following is the chain of the sauce manufacturing business:

# The first step in the supply chain management is the choosing of the location for the manufacturing and raw material supplier for the production process. That is the very crucial step,because the best the quality of rawmaterial the good the product manufactured and smart place affects the marketing of the business.

# The second step is the production and making of the sauces from the raw material obtained and then ready it for the quality checking. after the quality is tested then it will be ready for the taste and FSSAI standards checking.

# Then the ready sample is sent to packaging section to packed in glass jars or sachets in different sizes and containers. The ready products are sent for the transportation to get to desired markets.

# Some of the products are directly sent to customers by the door to door delivery of the food items or by directly getting them to grocery stores. While left ones are passed through the wholesalers, suppliers, dealers, retailers and finally to customer chain.

 

6. OPERATIONAL PLAN

The operational plan of sauce manufacturing business:

# Tomato sauce making machine=10,000-35,500/unit

# Pulp machine=18,000/unit

 

7. FINANCIAL EXPENSES

• # Location
• # Raw material (vegetable, fruits, spices, essential taste ingredients, oil)
• # Cutting and chopping machines
• # Mixer and binder/blender
• # Packaging machines
• # Labours
• # Electricity supply
• # Transportation facility

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