A fig and coconut jam production company is a niche jam, jelly, and preserves business that produces and sells fig and coconut jam. Fig and coconut jam can be used like other jams as a fruit spread for toast, scones, cakes, and other baked goods, and it can also be used as a condiment for savory foods.
Aside from the fact that jams are spread on bread, they can also be used with sweet and savory foods. Fig and coconut jam can be used as a glaze for pork or chicken. Jam and Jelly production business is part of the global fruit and vegetable processing industry.
The jam, jelly, and preserves market that the fig and coconut jam production business is a part of is projected to register a CAGR of 3.6% during the forecast period of 2022 to 2026. In 2020, the production volume of jam and other fruit spreads made with apples amounted to roughly 60.4 thousand tons, a decrease compared to the previous year at 62.35 thousand tons.
Steps on How to Write a Fig and Coconut Jam Business Plan
Al Lacteal™ Jam Production Company, Inc. is an American-based and licensed niche jam, jelly, and preserves production business that will major in the production of fig and coconut jams. Our production facility will be located in a well-furnished facility in the heart of Cedar Rapids, Iowa. Alex Lacteal is the founder and CEO of Al Lacteal™ Jam Production Company, Inc.
a. Our Products and Services
Al Lacteal™ Jam Production Company, Inc. will be involved in the production and sale of;
- Fig and coconut jams
- Different types and flavors of jams, jelly, and preserves
b. Nature of the Business
Our fig and coconut jams production business will operate a business-to-consumer business model.
c. The Industry
Al Lacteal™ Jam Production Company, Inc. will operate under the global fruit and vegetable processing industry.
d. Mission Statement
Our mission is to produce fig and coconut jams and related products that will be irresistible to a wide range of customers.
e. Vision Statement
We want to be known as the fig and coconut jam production company with a unique recipe and product.
f. Our Tagline (Slogan)
Al Lacteal™ Jam Production Company, Inc. – Your Preferred Choice!
g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)
Al Lacteal™ Jam Production Company, Inc. will be formed as a Limited Liability Company (LLC).
h. Our Organizational Structure
- Chief Executive Officer
- Production Manager
- Food Nutritionist
- Quality Control and Quality Assurance Manager
- Human Resource Manager
- Machine Operators
- Salesmen and Saleswomen (Distributors).
i. Ownership/Shareholder Structure and Board Members
- Alex Lacteal (Owner and Chairman/Chief Executive Officer) 52 Percent Shares
- Garry Wilson (Board Member) 18 Percent Shares
- Ben Norman (Board Member) 10 Percent Shares
- Carty Bright (Board Member) 10 Percent Shares
- Amie Mack (Board Member and Sectary) 10 Percent Shares.
- Ideal location for a fig and coconut jam production business
- Highly experienced and qualified employees and management
- Access to finance from business partners
- Access to ingredients and supplies.
- A reliable, clean, healthy, and efficient method of producing fig and coconut jams.
- Financial Constraints
- A new business that will be competing with well-established jam, jelly, and preserves production companies.
- Inability to retain our highly experienced and qualified employees longer than we want
- A rise in people who want to experiment with fig and coconut jams
- Online market, new services, new technology, and of course the opening of new markets
i. How Big is the Industry?
The market for fig and coconut jams, jellies, and preserves is massive in the United States of America. This can be supported by the fact that the industry is worth over $290 billion annually.
ii. Is the Industry Growing or Declining?
Yes, the fig and coconut jam production business is a growing business because loads of people eat fig and coconut jams daily.
iii. What are the Future Trends in the Industry
The future trends when it comes to the fig and coconut jam production business will revolve around technology. Software that is meant to predict what customers want from a fig and coconut jams production business and also online markets where people can order fig and coconut jams from the comfort of their homes.
iv. Are There Existing Niches in the Industry?
No, there are no niche ideas when it comes to the fig and coconut jam production business because the business is a subset of the global fruit and vegetable processing industry or the jams, jellies, and preserves market.
v. Can You Sell a Franchise of your Business in the Future?
Al Lacteal™ Jam Production Company, Inc. has plans to sell franchises in the nearest future and we will target major cities with thriving markets in the United States of America.
- The arrival of new fig and coconut jams production business or jams, jellies, and preserves production companies within our market space
- Unfavorable government policy and regulations.
- Steady wage expenses
- Economic uncertainty
- Liability problems
- The U.S. Food and Drug Administration (FDA) could change its regulatory status and decide to enforce strict regulations that can strangulate new businesses like ours.
i. Who are the Major Competitors?
- Duerr & Sons Ltd.
- B&G Foods, Inc.
- The J.M. Smucker Company.
- Andros Group.
- Orkla ASA.
- The Kraft Heinz Company
- Campbell Soup Company
- General Mills Inc.
- McCormick & Company Inc.
- J. Heinz Company
- Unilever Group
- Crosse & Blackwell Food Production Company
- Gold Pure Food Products Co.
- Hirzel Canning Company & Farms
- Shan Food Industries
- Three Threes Condiments
- Wei-Chuan Food Corporation
- The Bega Co-operative Society Limited
- ConAgra Foods, Inc.
- Baxter and Sons
- Bonne Maman
- Wellness Foods
- Hershey Company
- M. Smucker
- Wilkin and Sons
- Nestle Ltd
- Premier Foods.
ii. Is There a Franchise for Fig and Coconut Jams Production Business?
No, there are no franchise opportunities for the fig and coconut jam production business.
iii. Are There Policies, Regulations, or Zoning Laws Affecting Fig and Coconut Jams Production Business?
Yes, there are county or state regulations or zoning laws for fig and coconut jams production business, and players in this industry are expected to work with the existing regulations governing similar food-related businesses in the county where their business is domiciled.
For example, since 2013, The California Homemade Food Act has allowed home cooks to make and sell certain low-risk foods from homes, such as baked goods, jam, and granola—but it does not allow vendors to sell hot, home-cooked foods.
a. Who is Your Target Audience?
i. Age Range
Our target market comprises adults above 18 years who have the finance to purchase fig and coconut jam from us.
ii. Level of Educational
We don’t have any restriction on the level of education of those who will buy our fig and coconut jams.
iii. Income Level
There is no cap on the income level of those we will sell fig and coconut jams to.
There is no restriction when it comes to the ethnicity of the people we will sell our fig and coconut jams to.
There is no restriction when it comes to the language spoken by the people we are looking forward to purchasing fig and coconut jams from us.
vi. Geographical Location
Anybody from any geographical location is free to purchase fig and coconut jams from us.
Al Lacteal™ Jam Production Company, Inc. will not restrict any customer from purchasing fig and coconut jams from us based on their lifestyle, culture, or race.
b. Advertising and Promotion Strategies
- Deliberately Brand All Our Vans and Delivery Bikes.
- Tap Into Text Marketing.
- Make Use of Bill Boards.
- Share our Events in Local Groups and Pages.
- Turn our Social Media Channels into a Resource
- Develop our Business Directory Profiles
- Build Relationships with all players in the food preparation line of business such as grocery stores, supermarkets, hotels, restaurants, bakeries, caterers, snacks manufacturers et al.
i. Traditional Marketing Strategies
- Marketing through Direct Mail.
- Print Media Marketing – Newspapers & Magazines.
- Broadcast Marketing -Television & Radio Channels.
- OOH, Marketing – Public Transits like Buses and Trains, Billboards, Street shows, and Cabs.
- Leverage direct sales, direct mail (postcards, brochures, letters, fliers), print advertising (magazines, newspapers, coupon books, billboards), referral (also known as word-of-mouth marketing), radio, and television.
ii. Digital Marketing Strategies
- Social Media Marketing Platforms.
- Influencer Marketing.
- Email Marketing.
- Content Marketing.
- Search Engine Optimization (SEO) Marketing.
- Affiliate Marketing
- Mobile Marketing.
iii. Social Media Marketing Plan
- Start using chatbots.
- Create a personalized experience for our customers.
- Create an efficient content marketing strategy.
- Create a community for our target market and potential target market.
- Gear up our profiles with a diverse content strategy.
- Use brand advocates.
- Create profiles on the relevant social media channels.
- Run cross-channel campaigns.
c. Pricing Strategy
When working out our pricing strategy, Al Lacteal™ Jam Production Company, Inc. will make sure it covers profits, insurance, premium, license, economy or value, and full package. In all our pricing strategy will reflect;
- Cost-Based Pricing
- Value-Based Pricing
- Competition-Based Pricing.
Sales and Distribution Plan
a. Sales Channels
Our channel sales strategy will involve using partners and third parties—such as referral partners, affiliate partners, strategic alliances in the grocery stores industry and the food services industry and freelancers help refer customers to us.
Al Lacteal™ Jam Production Company, Inc. will also leverage the 4 Ps of marketing which are place, price, product, and promotion. By carefully integrating all of these marketing strategies into a marketing mix, we can have a visible, in-demand service that is competitively priced and promoted to our customers.
b. Inventory Strategy
The fact that we will need ingredients and fruits (coconuts and figs et al), means that Al Lacteal™ Jam Production Company, Inc. will operate an inventory strategy that is based on a day-to-day methodology for ordering, maintaining, and processing items in our warehouse. We will develop our strategy with the same thoroughness and attention to detail as we would if we were creating an overall strategy for the business.
Al Lacteal™ Jam Production Company, Inc. will make sure we work with “Just-in-time (JIT) inventory” – (JIT involves holding as little stock as possible, negating the costs and risks involved with keeping a large amount of stock at hand.)
c. Payment Options for Customers
Here are the payment options that Al Lacteal™ Jam Production Company, Inc. will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
- Payment via bank draft
d. Return Policy, Incentives, and Guarantees
At Al Lacteal™ Jam Production Company, Inc., our customers are our top priority hence if you receive fig and coconut jams that are different from want, we will sincerely apologize. Please call us as soon as you notice that there was an error in your order, you may come to pick up the correct food item.
For credit card payments, you will be refunded the sales price amount associated with the error and recharged for the new items’ price.
For cash payments, you will be asked to pay the difference of the balance if the new jam has a greater value than the food received in error. In the same way, you will receive the difference of the balance back as credit for the new item if less than the product received in error. In some cases, we may offer you store credit.
Your order will be a priority if you come to pick it up. In all cases, please return the fig and coconut jam order in the original container(s) to our customers. Please, if you have any questions regarding the Return & Refund Policy, please call our customer care officer.
c. Customer Support Strategy
Our customer support strategy will involve seeking customer feedback. This will help us provide excellent customer service to our clients. It will help us to first understand their needs, experiences, and pain points. On a regular basis, we will work towards strengthening our Customer Service Team and also Leverage Multi-Channel Servicing as part of our customer support strategy.
Our operational plan will cover capacity planning, location planning, layout planning, quality planning, and methods planning.
Overall, we plan to expand our revenue by 25 percent in the second year and the plan will include a marketing, sales, and operations component. The operations component of the plan would include attracting partnership and retainer deals that will enable us to boost our fig and coconut jam sales.
a. What Happens During a Typical Day at a Fig and Coconut Jam Production Business?
- The business is open for the day’s work
- The production facility is cleaned and ready for the day’s business
- Fig and coconut jams ingredients are purchased
- The production and packaging of fig and coconut jams
- Customer’s orders are taken and they are delivered to them
- Cashiers reconcile accounts for the day
- Administrative duties are carried out
- The store or warehouse is restocked when required.
- The business is closed for the day.
b. Production Process
The production process or better still preparing fig and coconut jams starts by getting your ingredient ready.
Thereafter, fig and coconut jams are made from pieces of fruit, usually chopped or crushed and cooked with sugar until the pectin releases and the mixture is thickened to a spreadable consistency.
c. Service Procedure
The is no unique service procedure for the fig and coconut jam production business. It is a business that produces and supplies (sells) fig and coconut jam to retailers or directly to consumers.
d. The Supply Chain
Al Lacteal™ Jam Production Company, Inc. will rely on key layers in the grocery stores industry and the culinary cum food services industry to refer business deals to us. So also, we have been able to establish business relationships with wholesale supplies of figs, coconuts, sugar, and packaging materials.
e. Sources of Income
Al Lacteal™ Jam Production Company, Inc. makes money from selling;
- Fig and coconut jams
- Different types and flavors of jams, jelly, and preserves.
a. Amount Needed to Start your Fig and coconut jams production business?
Al Lacteal™ Jam Production Company, Inc. would need an estimate of $750,000 to successfully set up our fig and coconut jams production company in the United States of America. Please note that this amount includes the salaries of our staff for the first month of operation.
b. What are the Costs Involved?
- Business Registration Fees – $750.
- Legal expenses for obtaining licenses and permits – $4,300.
- Marketing, Branding and Promotions – $3,000.
- Business Consultant Fee – $2,500.
- Insurance – $5,400.
- Rent/Lease – $275,000.
- Other start-up expenses include stationery ($500), and phone and utility deposits ($1,800).
- Operational Cost (salaries of employees, payments of bills et al) – $120,000
- Start-up Inventory – $100,000
- Store Equipment (cash register, security, ventilation, signage) – $1,750
- Production Machines and Equipment – $200,000
- Distribution Trucks – $65,000
- Website: $600
- Opening party: $3,000
- Miscellaneous: $2,000
c. Do You Need to Build a Facility? If YES, How Much will it cost?
Al Lacteal™ Jam Production Company, Inc. will not build a new facility for our fig and coconut jam production business; we intend to start with a long-term lease and after 5 years, we will start the process of acquiring our own shop facility.
d. What are the Ongoing Expenses for Running a Fig and Coconut Jams Production Business?
- Supplies and ingredients
- Utility bills (gas, internet subscriptions, phone bills, signage and software renewal fees et al)
- Salaries of employees
- Trucks and vans maintenance
- Marketing costs
e. What is the Average Salary of your Staff?
- Chief Executive Officer – $75,000
- Production Manager – $45,000 Per Year
- Food Nutritionist – $42,000 Per Year
- Quality Control and Quality Assurance Manager – $42,000 Per Year
- Human Resource Manager – $40,000 Per Year
- Accountant – $35,630,000 Per Year
- Machine Operators – $28,000 Per Year
- Distributors – $26,000 Per Year
f. How Do You Get Funding to Start a Fig and Coconut Jam Production Business?
- Raising money from personal savings and sale of personal stocks and properties
- Raising money from investors and business partners
- Sell shares to interested investors
- Applying for a loan from your bank/banks
- Source for soft loans from your family members and friends.
a. How Much Should You Charge for your Product?
The price of our fig and coconut jam will be between $2 and $6.50 per pack or between $8 and $15 per dozen.
b. Sales Forecast?
- First Fiscal Year (FY1): $480,000
- Second Fiscal Year (FY2): $1 million
- Third Fiscal Year (FY3): $1.5 million
c. Estimated Profit You Will Make a Year?
- First Fiscal Year (FY1) (Profit After Tax): $200,000
- Second Fiscal Year (FY2) (Profit After Tax): $450,000
- Third Fiscal Year (FY3) (Profit After Tax): $750,000
d. Profit Margin of a Fig and Coconut Jam Production Business
The ideal profit margin we hope to make at Al Lacteal™ Jam Production Company, Inc. will be between 20 and 40 percent depending on the pack and size.
a. How do you intend to grow and expand?
Al Lacteal™ Jam Production Company, Inc. will grow our fig and coconut jam production business by first opening other distribution channels in key cities in the United States of America within the first five years of establishing the business and then will start selling franchise from the sixth year.
b. Where do you intend to expand to and why? (Geographical locations)
Al Lacteal™ Jam Production Company, Inc. plans to expand to Miami, Florida, Houston, Texas, New York City, New York, Oklahoma City, Oklahoma, Chagrin Falls, Ohio, Kaysville, Utah, Las Vegas, Nevada, Los Angeles, California, and Dallas, Texas.
The reason we intend to expand to these locations is that available statistics show that the cities listed above have the highest market for jam production in the United States.
The founder of Al Lacteal™ Jam Production Company, Inc. plans to exit the business via family succession. We have placed structures and processes in place that will help us achieve our plan of successfully transferring the business from one family member to another and from one generation to another without hitches.