1. Business Plan Business Plan Prepared By: Amanda Hoehn Jeremy Olthof Leigh Anderson Glenn Stacey

2. AgEc 495.3 College of Agriculture and Bioresources Introduction  The feasibility of moving a packaged fudge bar into the premium retail market  Primary target market will be Western Canada

3. AgEc 495.3 College of Agriculture and Bioresources Site Layout

4. AgEc 495.3 College of Agriculture and Bioresources Goals of Business  Short Term  Western Canada  Retail market  Packaging and selling of:  12 regular flavours  2 sucrose free flavours  Long Term  Expand to the rest of Canada  Relocate to a larger facility

5. AgEc 495.3 College of Agriculture and Bioresources Fudge Process Raw Ingredients A Fudge Vat B Fudge Pan C Scoring H Packaging G Heat Sealing D Labeling F Display Case Master Case Cutting E I

6. AgEc 495.3 College of Agriculture and Bioresources Inventories, AR and AP  Inventories  12 days  FIFO  Accounts Receivable  12 days  Consignment and PharmaChoice ®  Customer pay by credit card at gift shows  Accounts Payable  10 days  New York supplier - 2/10 n/45  Harlan Fairbanks - 2/10 n/30

7. AgEc 495.3 College of Agriculture and Bioresources Capital Budget

8. AgEc 495.3 College of Agriculture and Bioresources Organizational Structure: Board of Directors Board of Directors (2) Sales Representative Factory Staff President/General Manager Co-Manager

9. AgEc 495.3 College of Agriculture and Bioresources Human Resources  Currently  President/General Manager  Co-Manager  Fudge Chef  Fudge Workers  Additions  Sales Representative  Fudge Workers

10. AgEc 495.3 College of Agriculture and Bioresources Product  80g premium fudge bar  4 x 2 package  12 regular flavours and 2 sucrose free  Wrapped in a glossy package  Weight  Flavour  Ingredients  Best before date  Nutritional information

11. AgEc 495.3 College of Agriculture and Bioresources Price  Wholesale $2.59  Retail and consignment $3.99  Both premium and competitive pricing strategy  FF will be the only providers of fudge to the retail market

12. AgEc 495.3 College of Agriculture and Bioresources Promotion  Gift shows  “Fudge Program”  Retail display rack  Website  Pamphlets and signs

13. AgEc 495.3 College of Agriculture and Bioresources Place  Gift shops  24 PharmaChoice ® stores  SaskMade Marketplace ®  Shipped by private courier  Contacted via gift shows http://www.pharmachoice.com/images/front-logo.gif http://www.sfpa.sk.ca/img/programs_market_saskmade.gif

14. AgEc 495.3 College of Agriculture and Bioresources SWOT: Strengths  Human Resources  Ease of communication with staff  Excellent knowledge base of fudge industry  Commissioned sales personal  Physical Resources  Low capital investment  Leasing the building  Financial Resources  Just in time inventory turnover  Line of credit available in case of low cash flow

15. AgEc 495.3 College of Agriculture and Bioresources SWOT: Weaknesses  Human Resources  Executive and Sales Rep. have overlapping positions  Consistency of product and packaging  Physical Resources  Low capital investment  Limited expansion potential with a leased building  Product has to be set at a certain temperature  Financial Resources  No accounts receivable at gift shows

16. AgEc 495.3 College of Agriculture and Bioresources SWOT: Opportunities and Threats  Opportunities  Provide an alternative to chocolate – niche market  Other retailers can follow the gift stores, PharmaChoice, SaskMade Marketplace  Sucrose free product to diabetics and dieters  Threats  No barriers to entry for competition  Healthier consumption choices

17. AgEc 495.3 College of Agriculture and Bioresources Competition  Cote D’or ®  Poulain ®  Lindt ®  Bernard Callebaut ®  Laura Secord ®  Cadbury ®  Hershy ®

18. AgEc 495.3 College of Agriculture and Bioresources Balance Sheet

19. AgEc 495.3 College of Agriculture and Bioresources Statement of Financial Results

20. AgEc 495.3 College of Agriculture and Bioresources Financials

21. Financials

22. Questions ? www.fudgefix.com