BIO- AGRO

Prepared By

Elegant

P.K Subodani Reg No:PDM- D08- S026

P.T.M Subasinsana Reg No:PDG- COL- 2011- DEC- 041

U.A. Cader Reg. No: D111C01-1

Integrated Assignment – Certificate Level

December 2011 Examination

Certificate in Marketing

Postgraduate Diploma in Marketing

SRI LANKA INSTITUTE OF MARKETING

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Table of Contents

Page

Executive Summery 1

Task 1

1. Introduction to Bio-Agro (Pvt) Ltd 3

2. Extended Market 4- 6

3. SWOT Analysis 7- 9

4. PESTEEL Analysis 9-10

5. Segmentation, Targeting, Positioning Analysis 10- 15

Task2

6. New Strategic Business Unit 17- 19

7. Objects Clause / Ultra Vires 19- 20

8. Proposal to Convert To Public Ltd 20- 22

Task 3

9. Perceptual Distortion 24- 26

10. Maintaining Standard 26

References 27

Annexure 28-34

2

Executive summary

Our focus in this project is on Bio-Agro (Pvt) Limited which has experience in

producing Agri products for more than 30 years. In respect of the first task we carefully

identified the extended marketing mix and also analyzed SWOT & PESTEEL factors by

referring to guidelines and real world agri product’s produce in order to determine the

values that it could offer. Out of its product range we mainly focused on fruit juices in the

STP analysis. According to the secondary data study it showed that there is positive

demand on fruit products

keeping in line with market specialization, we selected leading schools & higher

education centers in the western province to provide mostly demanded fruit juices;

Mango, Avocado, & Orange which is giving in to more competitive advantages. We used

the positioning statement, “We, Bio-agro (Pvt) ltd are assuring to provide the superior

value to you by adopting Total Quality Management (TQM) practices on every

aspects of our product package” to give a better positioning. And on the other hand, we

developed a new strategic business unit - “MR JOOZ”, bottled fruit juices focusing

events on the market segment, Due to lot of limitations we propose Bio-Agro private

limited to incorporate as a Public Limited Company, with the aid of E-marketing for

them to expand business activities .

Perceptual distortion affects new business growth. It is very vital to keep up the same

standard of the company otherwise this will affect market share and will bring a bad

reputation of the company to the market.

For further development we recommend Bio-Agro to emphasize its contribution on

keeping its consumers health well., Advertising with the help of the famous doctor,

stressing on health benefits will make it possible to enter new market (middle age )and

improve point of sales and retain consumers in the targeted market. They can use new

positioning statement like “Health = Wealth = Bio-Agro Fruit Juices” & contribution

on CSR activities like organize events (e.g. poster competitions) to school children to

improve brand loyalty

3

Task 1

4

1. Introduction to Bio-Agro (PVT) Ltd

One of the leading Agricultural Company in Sri Lanka, still stands alone over the past

three decades.Bio-Agro fully owns more than 12,000 acres of Farm land, working very

closely with rural farmers and produces a variety of Agriculture & Livestock  products

like fresh fruit, vegetables, seeds, dairy product Agro chemicals, fertilizer and agricultural

machineries under its own Brand name for the local market, Bio-Agro works with a

strong commitment towards the farmers , and we make sure of their well being and

happiness in their families while improving the Economy of Sri Lanka.

Bio-Agro Company produces their products more environment friendly manner with a

minimum impact to the environment. They are imitating green environment concept. Bio-

Agro Company is the first and only ISO 9001:2000 quality system certified company in

Sri Lanka and they have obtained SEED ISO 9001:2000 quality management

certifications RICE ISO 22000(HACCP) Certification as well.

The company applies the highest standard of excellence for their products. And also

they are encouraging farmers to grow more and get more income as well as developing

the National Agriculture.

2. Extended Marketing Mix

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2.1. Product

Brand Name : Bio-Agro

Bio-Agro (Pvt) Ltd company’s current product mix consist of fresh fruit, vegetables,

seeds, dairy products from its own well developed farms and Agro chemicals, fertilizers

as well. All the products are wrapped in protected and standardized casings. Apart from

the above products machineries are directly imported from Japan and deliver with a 5

year warranty. In our journey we focus on their fruit juices.

2.2. Place

The company has its own cultivated farms as big as 12,000 acres of land. Each product

is segmented, and the distribution is spread widely across the country. It has Agri sub

distribution units in Sri Lanka’s main regions such as Colombo, Kandy, Kurunegala, and

Galle, Anuradhapura etc .The Company also owns 3 main warehouses based in Colombo,

Kandy and Galle. And Farm lands at Kurunagala , Maho, Rratnapura, and Kandy

Bio-Agro products are easily accessible through its informative and well developed

webpage for e-marketing www.bio-agro.lk. In the Transportation Bio Agro is taken care

of effectively where refrigerators are attached to all of its trucks to safeguard and preserve

the quality of the food.

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2.3. Price

Price is a very important factor as well as a very sensitive issue. It is the only mix that

generates revenue to survive. Bio-agro has chosen cost plus pricing strategy for all of the

product lines based on Seasonality of the product. This is found to be one of the major

problems in this industry

On machinery apart from the warranty, if the customer is willing we offer warranty

expansion with an extra cost. Products displayed in the website would be priced at the

prevailing market prices in Sri Lankan rupees.

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2.4. Promotion

The company has a very well planed advertising roster & it develops attractive

advertisements mainly in newspapers with well described benefits where the people can

understand the value of the products. So far this form of media has been very effective.

Apart from that, Bio –agro does;

Viral marketing

Poster campaigns

E-mail blasters

Search engine advertising

Promotional and educational campaigns (mainly focused on schools)

2.5. Physical Evidence

All of our distributional hubs have uniquely designed based on 2 colors, green and

blue. It has a sitting area where people can relax and all the product material required is

available, which enables to know our products better and gain knowledge. All the

employees on distributional outlets wear green t-shirts with the Bio-Agro logo and black

bottom as a uniform.

2.6. Process

All the activities that occur have a structure .the company operates 24 / 7 operation on

shift basis to keep up the quality of the product. Ware housing is operated on the FIFO

(first in first out) and LIFO (last in first out) basis depending on the products. Bio-Argo’s

website is fully secured with developed system security.

2.7. People

Our employees are the backbone of the company and an asset to the company and all

the employees are well trained, committed, and specialized people. Bio Agro trains them

once in every 3 months .mainly focusing on customer service, which the company

believes as the key to success. We retain all our valued customers through our thoughtful

and efficient service and it is one of our comparative advantages.

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3. SWOT Analysis

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STRENGTHS

30 years of experience

Well trained expert staff

12,000 acres of Large farms

Widely spread Distributional channels

24*7Operations & TQM practices so

brand loyalty is there

Large loyal customer base and

affordable products

Advance web site for E-marketing

WEAKNESSES

Due to the Pvt ltd company - Poor

capital, Lack of funds, Expansion issues

Lack of customer awareness on

E-marketing

Specialization on one area for longer

period - Job Dissatisfaction

Lack of HR practices-job rotation,

rewarding, stress management, etc.

Industrial disputes due to lack of

authority to making decisions.

OPPORTUNITIES

Government support on agricultural

products- tax reduction on importing

Agri machineries

Economical and political stability

New distribution channels

Market expansion with development of

tourism& global accessibility through

E-marketing

Social media marketing- Face book

Increases of demand in fresh fruit

juices than soft drinks due to health

issues

THREATS

Supply depend on Weather condition

Huge competition - increases in bargain

power of suppliers and customers, new

entrance ,subsidiaries and initial rivals

Government policy changes

New Technological advancements

Online payment frauds- credit cards

frauds high in SL

Conversion

S   W

O   TBio-agro should convert to public limited company, restructuring to flat hierarchy with

more HR practices. It should be early updating with technological advancement &

develop secure shopping system to overcome payment issues in computerized

environment with the intention to differentiate.

4. PESTEEL Analysis

4.1. Political

Policies- agricultural, Tax & monetary, etc.

Country stability

Government subsidiaries- Fertilizer benefits ,SME development

Government intervention on recovering market failures- public goods,

infrastructure developments.

4.2. Economic

Agricultural contribution on economic growth

loan accessibility and Interest rates

Changes in inflation rate purchasing power

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4.3. Sociological

All demographic characteristics including social values & generation changes, life

styles changes, & positive attitudes towards local products.

4.4. Technological

E-business developments- online advertising, online purchasing, etc.

New innovations

Research and development in organization/ industry & in country

4.5. Ecological

Green marketing

4.6. Ethical

Advertising & customer ethics

CSR activities

4.7. Legal

Government legislation-, food and hygiene policy, foods transportation policies

Authorities & Acts to protect consumer ,employees & social interests

5. Segmentation, Targeting, Positioning Analysis

According to primary data,

Our company did consumer survey to collect primary data in related to the fruit juice

consumption to determine the best target market and to set new strategic business unit in

task 2. For this purpose we randomly selected 100 people especially in western province

and collected feedback for quantitative & qualitative questions.

5.1. Segmentation

a) Demographical segmentation

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i. Gender

In our selected sample 60 are female & out of them 59 like fruit juice and from 40

sample male, 37 like fruit juice, totally 96% demand on it.

Out of fruit juice consumers, the most of demand (90%) is coming from young

generation in both gender, between ages 15-35 & out of it 58% (52/90) is

represented by very younger population between ages 15-25.

With the increases of age their preference on fruits juices has declined, between

ages 46-65 only 4%.

ii. Income

Most of middle lower level income earners like to consume fruit juice, monthly

income in between LKR 20000-30000, 50%.

Lower income groups also have more preference on it, below LKR 20000- 30%.

Comparatively less preference is coming from middle-upper or above income

earners. So we can assume there are good subsidiaries which have targeted those

people.

b) Psychographic Segmentation

i. Interests

Here out of different type of fruit juices we check for which have the most

preference. Mango juice has highest demand on the sexes, total 23% & the second

highest on Avocado, around 20%.

Least interested in Papaw near 2% from total demand.

ii. Values

Comparatively more people know organic products are good for better life so they

like to pay more on them than GM products, here 56%. So In the case of Agri

juices they like to pay more & also 80% have identified they are affordable.

People pay considerable attention on quality & all identify Agri juices are in good

quality.

In the case products’ availability, it is preferable for majority, 80%.

c). Behavioral Segmentation

i. Benefits sought

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Most expected benefit from the product is vitamin especially C vitamin, 34%.

Then demand on its taste & contribution on maintaining good health, 30% in both.

ii. Brand loyalty

Out of the sample near 98% people can differentiate Agri juice from others as a

good brand.

iii. Usage rate;

Over the half of people consume it only once a week. Only 22% & 18% people

consume correspond Everyday & Thrice a week

iv. User status

The time they buy, half of questionnaires have recorded as in the morning, only

14% in noon.

The most selling place is grocery 48%; the second one is super markets 46%.

According to Secondary data,

Here we collected the evidence how the western world’s demand changes on fruit

products & vegetables to effectively use for E-marketing & export purpose in future. It

also shows above two things have contributed the highest percentage in per person’s

meal.

Figure 1.0: Food Consumption of United Kingdom

5.2 Targeting

When organization go for targeting by laying on segmentation , they must pay attention

on followings to decide whether it is attractive & best fit with organizational objectives.

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a) Attractiveness & growth of the market- size of segment, growth rate, competition in

the segment, existing brand loyalty, etc.

b) Suitability of market segments to the firm-

Whether the firm can offer superior value to customers & also for them in the

targeted segment

Impact of serving the segment on the firm’s image

Strength of the distribution channels

After considering secondary data (refer Figure 1.0.)

Comparing with the westerners Sri Lankans demand has increased rapidly, everyone is

very much health conscious and most of the parents; they add fruits to their Childs lunch

pack. Most of our working crowed is too busy and they find it difficult to go to a fruit

shop & get fruit. Because they know the importance of fruit they simply reach out to fruit

juice instead. So we satisfy that needs through providing fruit juices.

As to our survey results, there is a comparatively good demand for fruit juices than

Fizzy drink from the total product range of Bio-Agro (Pvt) Ltd Company. The highest

preference from very young between ages 15-25(52%), so we can more targets on them

than other ages. In the case of income wise preference analysis, middle lower level

income earners (LKR 20000-30000) represent 50% & Lower income groups (below LKR

20000) represent 30%, so we can focus them also. The mango fruit juice has more

demand near 23% & 20% for avocado & third highest demand on Orange with the

purpose of obtaining vitamins according to our survey.

On our survey we observe majority can differentiate Agri fruit juice as good so there is

big share on brand loyalty. Most of them demand on it to obtain vitamin but in the case

of usage rate not satisfied, only 22% & 18% people consume correspond Everyday &

Thrice a week but half of people consume it only once a week. After carefully analyzing

above we can provide products after having market specialization; markets are

categorized on ages.

M1 M2 M3

P1 Here M1 is targeted

P2

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P3

M1- youngest consumers- leading schools & higher education centers at western province

M2- immediate workers ages 25-35

M3-other ages

P1- Mango fruit juice small bottle

P2- Avocado fruit juice small bottle

P3- Orange fruit juice small bottle

5.3. Positioning

After targeting we have to position our products on consumer’s mind well. So the

positioning strategy plays a vital role. It has three steps;

a) Identify a set of possible competitive advantages.

In this case we should develop a better positioning statement- We, Bio-agro (Pvt) ltd

are assuring to provide the superior value to you by adopting Total Quality

Management (TQM) practices on every aspects of our product package. Here

organization has promised to deliver quality services to the consumers, use it to gain

competitive advantages over competitors important to keep those. It will increase the

brand loyalty.

Possible competitive advantages according to the survey-

Near 98% have identified Bio-agro as good brand so we can use this to

differentiate our products & positively use to improve the demand in new

SBU.

There is highest demand from young 15-35, 90% demand from two sexes.

People the most sought benefit is to obtain vitamins, 34% so can more

emphasis it while obtaining certificates, through effective advertising.

Customer retention due to value delivery through thoughtful and efficient

service.

b) Finding the right competitive advantages

There is increasing trend on consuming organic products, due to the good

brand identification Bio-agro can grab better market share.

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On the survey 80% said our products are affordable so that can use to save

higher demand which is coming from middle lower & lower level income

earners.

Younger age category from which comes the highest demand, so we can

develop more features (e.g. fancy colours, designs, etc) on product &

packaging, attractive advertisings with slogan & famous peoples to match with

their demand

People the most sought benefit is to obtain vitamins in every ages, 34% so can

more emphasis it while obtaining certificates, through effective advertising.

To grab the consumer attention on it is better to communicate the effectively and

deliver to the targeted position by keeping promises as well.

c) Selecting on overall positioning strategy

Bio-agro can position their own products with the concentration on the

attractiveness of the selected target and its fitness with over all objectives.

d) Differentiation from competitors

BIO-agro (Pvt) ltd is differentiating from CIC, MD, etc. by offering unique bundle

of benefits as follows;

Quality products for affordable prices

Respectable services for consumers

Easy accessible & attractive web site to purchase online

Adopting to TQM practices to deliver superior value throughout the process

Give priority to keep promises that they gave

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Task 2

6. New Strategic Business Unit

6.1. Introduction

An autonomous division or organizational units are small enough to be flexible and

large and enough to exercise control over most of the factors affecting its long-term

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performance. The new SBU will continue with our well developed and much owned fresh

fruit chain

Bio-Agro fruit juices are made out of pure fruits which is grown on our own farm

lands, they fresh out from the trees and all the fruits are freshly squeezed from the fruit by

physical processing they are prepared to the superior standards . No artificial colors, no

preservatives, no essence and no sugar have been added on to our fresh juices ,so that you

can get the best and real taste out of the fruit

Once the fruits are picked from our farms, they are sent for processing and the procedure

of processing, filling and refrigeration will be finished in 48 hours. The maximum

nutrition can be maintained in this way

6.2. New SBU to Targeted Market

Selected target group is the youth, who has the highest preference on any kind of

fruit juices. They are most occupy in leading schools & higher education centers

so we determine to sell our products trough there canteens and to as a interdiction

of this product we have posters and promotional material available on all of their

premises .

Out of type of fruit juices we selected above three why they have more demand on

our questionnaire analysis.

We specially set stalls to focus on special events; sport meets, cricket matches,

festivals & special occasions, etc.

In this SBU we normally distribute bottled fruit juices which could be consumed

by one person only (250ml) with affordable prices.

6.3. Branding

We have opened up a strategic business unit, for our retail business chain, primarily

based on selling fruit juice we have come up with new brand name “MR JOOZ” which

is very easy to pronounce and easy to remember .and we have created an exclusive brand

logo, where at a glance you can identify it’s a fruit juice.

6.4 The Fruit Juice Brand Logo

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Figure 2.0: Brand Logo

Logo will be displayed on the bottles as follows

Figure 2.1: Brand Logo in bottles

Figure 2.2: Label on bottles

All the fruit juices are priced at reasonable price ,we have marked a price of LKR

40.00, on all the product there is information about the nutrious level so that the customer

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can identify the importance of the fruit and the product lable contails a serial code which

will be easy for the dealers who operates scan based tills

6.5. Interlectual Property Act - Marks And Trade Names

Brand logo has been protected by the law according to the section 101 of the act

introduce legal positions regarding protection of service marks or trade marks.those

should be identical & visible signs which distinguishes the goods or service of different

enterpri.

“MR JOOZ”

constitutes marks also identical which consists of; arbitarary of fanciful

designations,names,geographical names,slogans,labels,colours,shapes,etc.(sec 102(3))

marks isn’t suitable to register if it consist exclusivly of a sign or indication,no

distinguishing from competiters,which offended religious or racial susceptibilities or

contrary to morality,misleading marks,represents individuals names or geographical

names,etc.(sec 103)

7. Objects Clause / Ultra Vires

And to break away from the barriers which do not allow the business to be carried out

overseas bio Agro convert into public limited company:

Demand towards natural fruits is growing in the European region and the western

world, and Sri Lanka being a country with lots of natural resources would be able

to meet that demand.

Mostly all the developed countries are facing a huge demand for fruits and lack of

supply has increased the price

Demand for fruits in the international market shows in the below 2 graphs

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(Source: Germany Trade and Invest, the Food and Beverage Industry in Germany, issue

2011/2012, page 6) 

Figure 3.1 consumption of fruit and vegetables as per to private household

This clearly shows that the consumption of fruits is increasing rapidly and there is huge

demand for fruits, The Company has already participated in preliminary discussions with

pioneering international, Fruit producers for a strategic alliance as to grab the business

opportunities in the international Market. The shareholders have given their consent for

all the above changes which were decided by the Board of Directors.

8. Proposal to Convert To Public Ltd

As a privet limited company they face following restrictions,

Shareholders cannot sell or transfer their shares without offering them first to the

other shareholders for purchase,

Shareholders cannot offer their shares or debentures to the general public over a

stock exchange,

The number of shareholders cannot exceed a fixed figure (commonly 50).

8.1 Disadvantages of a Private Limited Company

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Profit Sharing - : Evenly distributed among all shareholders.

Taxes -: High tax

No Trading -: Shares cannot trade to the public

High cost

Lack of Privacy

Restrictions in trading overseas

8.2 Advantages of a Public Limited Company

Access to capital

Liquidity

Access to international market

Value of shares

The opportunity to more easily make acquisitions

To give a company a more prestigious profile

Profit and tax advantages

8.3 Sources of Financing

Business ownership Sources of financing

Private limited company Bank loan and with owners’ savings- Start up in business

Venture capitalist- Expand factory

Private share issue

Grants Share capital.

Public limited company Bank loans-expansion overseas

Public share issue- business expansion

Sale of assets

Capital profits

Reinvested profit

Working capital

Share capital

Factoring

Grants

After considering above factors we propose it to incorporate under the Company act,

no 7 of 2007 provides references on it. (Refer appendix)

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8.4 Special Rules And Regulations

Consumer Affairs Authority Act, No 9 of 2003

Food Act, No 26 1980 amended by act No 20 of 1991.

Sales of goods ordinence ,no 11 of1986(amended)

Intellectual Property Act, No36 of 2003

Sri Lanka standards institution’s regulations

The measures taken by the Ministry of Health regarding the GMOs and the

(refer appendix)

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Task 3

9. Perceptual Distortion

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Lack of correspondence between the way a stimulus is commonly perceived and the

way. An individual perceives it under given conditions.

9.1. Common Perceptual Distortion Methods

a) Physical appearance

Introducing “MR JOOZ” under bio agro will give very vast exposure to the

community, product relating towards the health is the main plus point.

“MR JOOZ”, the brand name itself will promote the product ,we have made it very

easy to recognize from other brands where it comes in a glass of bottle and in the shape of

cylinder ,all the fruits a very much easy to recognize ,it have been differentiated with the

colour ,and its price very much similar to all other fruit juice product ,we didn’t want to

bring down the price because ,by starting with a low price it can go to a cheap

category ,so we are well known for our quality and standards we have kept the pricing

equivalent to other brands.

b) Halo Effects

Bio- agro is already well developed brand over last 3 decades and it has a very good

brand image among the community, as of now there is a huge customer base who is very

much loyal towards our products due to quality and standards. By introducing a new

product from bio agro, the brand name is almost having done half of the job.

c) Stereotype

Customers have established faith on our brand, wherever you see our brand image, it’s

known for quality, even if the product is little high in price the customer will go for

quality rather than quantity or reduced price.

d) Considering irrelevant cues

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There are still have set people have their fixed mind set does good what they believe in

,there are people who thinks that if you buy things from big mega stores or massive super

market they get the best products and best quality products ,Yes it is true for some certain

extent ,but not always ,all you get there is not the best to your health ,they sell all the

available things in the world ,super markets motive is availability.

If you get a product not much of the customers know the root of the company,

everyone should been educated on this.

9.2. Perceptual Distortion Affect on Overall Image Of Bio – Agro

If the bio-agro company produces low quality products customer loyalty will

be reduced as well as it will effect to the company name.

If the bio-agro company produces bottles which are not easy to hold sales of a

products will decrease.

If the Bio-agro company’s some brand gets the bad image that will affect for

the overall business.

Customer service also should be good. Otherwise company will fail to service

to customer as they want. Some customers may reject their products.

Poor customer distribution may affect to lose distribution channel.

Good image of company may influence customers to buy more bio-agro

products.

Well packaged products may gain more customer attention about their

products.

Choosing relevant brand ambassador might increase sales.

9.3. Use the Bio Agro Perception To Attract New Business

Bio agro is well known and it has its own customer base, opening a new business with

large customer base is the best strength we have.

The new business can go with different sectors apart from the current sectors such as,

We have very much focused on the schools and its entire canteen.

Participate for most of events that schools going to be held.

The educational institutes which is very much fruitful with the demand for this

product.

Advertise near to children’s play grounds, Sport complexes, Gyms.

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Product can be distributed through more Supermarkets and Groceries.

Can adapt relevant brand ambassador to promote their products.

Bio agro have started educational campaigns in mostly all the town and mass attention

is given to schools on this sector we could easily get the attention ,and it is easy to

educate ,outcome is very much effective.

10. Maintaining Standards

It’s very much vital to keep up the same or higher standards, the brand image created

throughout the years is an asset to the company, it is very challenging step into the new

business entering into the market.

We cannot have any kind of discrepancy on any part of the process, no matter how

much we work hard all these years if one of the products brings a bad name to the market,

we can lose a huge market share.

10.1. If These Standards Are Not Maintained

First impression is gone

Customer will hate the product

Customer will never buy the product again

He won’t recommend to anyone rather he would discriminate the product

Word of mouth is the strong marketing tool ,if this can happen the brand name is

gone

Sales drop and huge lost in the market share

Comparative advantage is lost

Competitors will take advantage out of this

This will affect the whole line up of the product list

References

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1. Slim text book

2. Web sites

o www. cicagri .com/

o http://www.definitions.net

o http://www.scotland.gov.uk

o http://www.austrade.gov.au

o http://www.cic.lk/

o http://www.alibaba.com

o http://www.gic.gov.lk

o http://www.photius.com

o http://nutritionmri.blogspot.com

Annexure

29

Survey summery

1) Gender

Male 40

Female 60

2) Age Group

15-25 52

26-35 38

36-45 6

46-55 2

55-65 2

3) Monthly income

10000< 14

10000-20000 16

20000-30000 52

30000-40000 8

40000-50000 2

50000> 10

4) Do you prefer fruit juice or fizzy drinks?

30

Male; 40Female;

60

15-25

26-35

36-45

46-55

56-65

0102030405060

No of Con-sumers

1000

0<

1000

0-20

000

2000

0-30

000

3000

0-40

000

4000

0-50

000

5000

0>

0102030405060

No of Con-sumers

Fruit juice 96

Fizzy drinks 4

5) What is your favorite fruit you would like have in form of juice ?

Orange 17

Lime 9

Mango 24

Grape 8

avacado 20

pineapple 6

wood apple 14

Papaw 2

6) what makes you to buy a fruit juice

Good source for fiber 0

A Good source of Vitamins 32

Low in Fat 4

They taste good alone 30

to maintain good health 30

other 4

7) Where do you buy your fruit juice from?

Farms 2

Grocery 48

super markets 46

Other 4

8) What time of the day would like to have a fruit drink

31

Ora

nge

Juice

Lime

Juice

Man

go Ju

ice

Grape

Juice

Avaca

do Ju

ice

Pine

Apple

Juice

Woo

d App

le Ju

ice

Papaw

0102030

No.of consumers

Morning 50

Noon 36

Evening 14

9) Would you pay more for organic products

yes 56

no 44

10) How often you have fruit juice

everyday 22

trice a week 18

twice a week 52

once a week 8

11) How do you grade Bio-Agro apart from other brands

very good 48

good 50

poor 0

very poor 2

12) Is Bio-Agro product priced affordable

yes 80

no 20

13) Availability on Bio-Agro products

   very good 16

good 64

poor 16

very poor 4

14) Quality on Bio-Agro products

very good 32

good 68

poor 0

very poor 0

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Incorporation of Public limited Company- company act, no 7 of 2007

( edited one)

Public limited Company is a company whose securities are traded on a stock exchange

and can be bought and sold by anyone.

In sri lanka , part one of campany act, no 7 of 2007 provides refferences to form as a

PLC,and how should incorporate in its name & is registered from time to time. It should

has capacity to carry on or undertake any business or activity(e.g.- Bio- Agro (pvt) ltd -

producing & selling fruit products), do any act or enter into any transaction. It subjects to

the provisions of any written law of Sri Lanka. (sec 2)

Our selected company can incorporated either-

Share issueing company with limited liability,

Share issueing company with unlimited liability,

Company limited by guarantee

In first two cases any person /persons can apply to incorporate a company,by giving an

prescribed application form with the sign of each initial shareholders, & following

documents :-

a) A declaration stating(on knowledge, the name of the company is not identical/similar to

that of an existing company)

b) The articles of association of the company, if different from the articles set out in the First

Schedule hereto, and signed by each of the initial shareholders ;

c) Consent from each of the initial directors under section 203, to act as a director of the

company

d) Consent from the initial secretary under subsection (2) of section 221, to act as

secretary of the company.(sec 3)

No of shareholders

In the case of at least two, and maximum unlimited.if one shareholder will be a Secretary to the

Treasury. (sec4)

Issue after all the requirements have been complied and has been incorporated on the date

specified in such certificate of incorporation ,by specifing followings;

(a) the name and number of the company

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(b) the date of incorporated

(c) whether a limited/ unlimited or limited by guarantee

(d) whether public/ private/ off-shore company

within thirty working days of its incorporation should give public notice of its

incorporation.Incorparation offers the legal persanality to the company.

Use of company name

It shall ensure that its name and its company number

If it is Unlisted public limited company ,end in the word “Limited” /“Ltd” and listed

company, end in the words “Public Limited Company/ “PLC”. (sec6) The name should not

be; name of any registered company ,contains the words “Chamber of Commerce”,(unless a

licence granted under section 34 ), misleading the Registrar and it should not be cantain

words of “President”, “Presidential” /“Municipal”, “incorporated” /“National”, “State” or “Sri

Lanka” / “Co-operative” or “Society” ; &, etc execpt with the consent relevent authorities.

(sec7)

In our case when converting privet to public limited, it shall be deemed to have resolved to

change its name in accordance with the provisions of subsection (1) of section 8, by omitting

the word “(Private)”.(sec 11) and should ensure that its name & no are clearly stated when it

is working with others.

When the company is engaging with cantrcate there should be two directors, one or more

attorneys. 27. In the case of the privet limited companies.it prohibit to the company to

offer shares or issue securities to the public, and limited to the fifty shareholders, and

not including shareholders who are employees /former employees of the company. (Part

two ot the act)

Acts related to the company

Consumer Affairs Authority Act, No 9 of 2003

Objective of the act is protection of consumers by the regulation on internal trade and to

promote effective competition. The Consumer Affair Authority is the authority under

that which issues directions to manufacturers or traders to label the goods (food, drink,

pharmaceuticals, fuel and all other merchandise) in respect ofprice marking, packaging,

sale or manufacture of the goods. If our manufacturer is produsing fruit products with

genetic modifications it should be mentioned.

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Food Act, No 26 1980 amended by act No 20 of 1991.

Objective of this act is to regulate and control the manufacture, importation, sales and

distribution of food and the establishment of a Food Advisory Committee (FAC).

manufacture, import, expose for sale, sell, store or distribute any food that is injurious to

health or has any novel or deleterious substances or food that is unfit for human

consumption are treated as offences unedr the Section 2 of this act.in section 3 discuss

issuess relating to the labeling, packaging, and the advertising. A minister is empowered

and Food Advisory Committee is there to governing purpose.

Sales of goods ordinence ,no 11 of1986(amended)

Objective is governing sales of goods in SL. Here goods are all movables other than

money and to cover under this followings should satisfy;

Buyer has accept part of the goods sold

Has paid price or part of thereof

Document to prove the contract

Intellectual Property Act, No36 of 2003

The objective of this act is provides laws & regulations, procedures of registration,

control and administration related to different types of intellectual property in Sri Lanka.

Prodection of patent rights of new inventions(product/process/etc) discuss under the part

four of the act. There are recqusitions to get such rights;

It is not practicable to define what is novel and thus an invention is deemed to be new if it

is not anticipated by art.

Involve an inventive step(can do with unique skills,resoures,etc the person has)

Industrial application or the usefulness of the invention should be there

In some cases eventhough above are satisfized cann’t to obtain due to biological process. The

National Intellectual Property Office has power to decide whether to refuse a patent in order to

protect public order or morality.

Sri Lanka standards institution’s regulations

Provides minimum standards to be maintain in specified comodities including fruit juices

when importing & manufacturing locally.

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The measures taken by the Ministry of Health regarding the GMOs and the

proposed measures( if go for producing GM products)

This is relevent our organization go for GM products.

There is special committee of the Ministry of Health on genetically Modified Foods in Sri

Lanka. In 2001 made regulations to ban the import, manufacture for commercial

purposes, transport, storage, distribution, sale and offering for sale any raw or processed

food, food ingredient or food additive that has been subjected to any genetic modification

or that contains any such ingredients. It also says that anyone who imports the items listed

in the schedule should get a certificate from an accredited laboratory or Competent

Authority to show that do not contain any material or ingredient containing GMOs.

If we want to obtain permits for the production and introduction of GMOs and products

should include the following information

1. Title of the project

2. Program/Project/Study Leader(s)

3. Name of Institution

4. Cooperating Institution(s)

5. Objectives of the Genetic modification

6. Materials and Methods

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