1. Theresa Maximnuk Kirby Poirier Sara Wielgosz Tyler Wilson

2. Introduction Proposing a Pasta Processing Plant to produce Whole Wheat Pasta Proposing a Pasta Processing Plant to produce Whole Wheat Pasta Plant will be established in Swift Current, Saskatchewan Plant will be established in Swift Current, Saskatchewan Funded by private Saskatchewan Investors and a Bank Operating Loan Funded by private Saskatchewan Investors and a Bank Operating Loan Using Home-Grown Prairie Durum wheat to make a value-added product Using Home-Grown Prairie Durum wheat to make a value-added product

3. Operations Plan

4. Organizational Structure Board of Directors - 5 Investors Manager Sales ManagerSecretary Production Staff

5. Lot Location #4#4 #1

6. Site Plan

7. Prairie Pride Pasta’s Floor Plan

8. Process Flow Finished product Storage Room

9. Business Cycle Business Hours – 8:00 to 4:30 Daily Business Hours – 8:00 to 4:30 Daily Plant workers stay extra hour Plant workers stay extra hour Optimum – 7 hours a day production Optimum – 7 hours a day production Durum delivered to plant every 2 weeks Durum delivered to plant every 2 weeks Potential of plant Potential of plant 21,000 kg/week 21,000 kg/week Total Production - 1,209,600 kg per year Total Production - 1,209,600 kg per year

10. Standards & Regulations Set out by Canadian Food Inspection Agency Set out by Canadian Food Inspection Agency Prairie Pride Pasta must follow food processing regulations Prairie Pride Pasta must follow food processing regulations HACCP program present HACCP program present ISO 9001:2000 ISO 9001:2000 recognized business recognized business

11. Investment Requirements Capital Budget Summary Capital Budget Summary Land $43,240 Land $43,240 Building Costs $267,650 Building Costs $267,650 Equipment $846,500 Equipment $846,500 Working Capital $85,197 Working Capital $85,197 Total Capital Required $1,242,587 Total Capital Required $1,242,587

12. Human Resource Structure

13. Prairie Pride Pasta’s Employees Operations Manager – $70,000 Operations Manager – $70,000 Sales Manager – Base $45,000 plus 1% commission – potential of $60,000 Sales Manager – Base $45,000 plus 1% commission – potential of $60,000 Secretary - $35,000 Secretary - $35,000 Plant Labourers – $12.00 per hour Plant Labourers – $12.00 per hour

14. Marketing Plan

15. The 4 P’s Product Product Whole Wheat Pasta (Long and Short) Whole Wheat Pasta (Long and Short) Pricing Pricing Market based competitive price Market based competitive price Promotion Promotion Health Food Product, Low Carbohydrates, Highly Nutritious Health Food Product, Low Carbohydrates, Highly Nutritious Place Place Independent, Locally owned, corner stores Independent, Locally owned, corner stores

16. Segmentation, Targeting & Positioning Potential Targets Potential Targets Large Scale Grocery Chain, Independent Grocery stores, Specialty Stores Large Scale Grocery Chain, Independent Grocery stores, Specialty Stores Segmentation Segmentation Variety of Customers that shop at different locations and store types Variety of Customers that shop at different locations and store types Positioning Positioning Convince customer to pay premium price for quality product Convince customer to pay premium price for quality product

17. SWOT Analysis Human Resource Human Resource Sales Manager is key! Sales Manager is key! Physical Resources Physical Resources Location, Modern Equipment, and Facility Location, Modern Equipment, and Facility Financial resources Financial resources Bank loan and private investors Bank loan and private investors External Opportunities & Threats External Opportunities & Threats Market trends Market trends Grain prices Grain prices New products New products

18. Market Analysis Whole wheat market increasingly growing Whole wheat market increasingly growing Conventional market gong down due to trends Conventional market gong down due to trends Target markets – Health food conscious people Target markets – Health food conscious people Customers willing to pay premium Customers willing to pay premium Product features – high nutrient, mineral, fibre, low-carb Product features – high nutrient, mineral, fibre, low-carb

19. Marketing Strategy Sales and Profit Objective Sales and Profit Objective “25% pre-tax profit by selling 75% of the plant’s production capacity” “25% pre-tax profit by selling 75% of the plant’s production capacity” Channels of Distribution Channels of Distribution Using Wholesaler/Distributor to distribute product to stores Using Wholesaler/Distributor to distribute product to stores RBR Food Brokerage Ltd in Calgary RBR Food Brokerage Ltd in Calgary

20. Marketing Budget Packaging - Design and Costs $5,000 Packaging - Design and Costs $5,000 Sponsorship & Donations $5,000 Sponsorship & Donations $5,000 Office Supplies – Marketing purposes $3,000 Office Supplies – Marketing purposes $3,000 Product Brochures $2,000 Product Brochures $2,000 Sales & Marketing Manager Expenses- $51,800 Sales & Marketing Manager Expenses- $51,800 Total Marketing Budget $66,800 Total Marketing Budget $66,800

21. Financial Plan

22. Financing Long Term Debt $500,000 Long Term Debt $500,000 Owner's Equity $744,411 Owner's Equity $744,411 Total Financing $1,244,411 Total Financing $1,244,411

23. Dividend Policy Dividend paid if: Dividend paid if: Cash flow – (working capital + 15%) Cash flow – (working capital + 15%) Dividend Policy Schedule 20082009201020112012201320142015 12,924144,870230,908284,389340,736361,952368,658372,944

24. Production Costs Year 2006 - Breakdown of $1.64 production Cost Durum, 0.21, 13% Boxes, 0.03, 2% Packaging Materials, 0.2, 13% Operating and Marketing Costs, 0.61, 38% Overhead, 0.43, 24% Direct Labour, 0.15, 10% Year 2014 - Breakdown of $1.19 Production Cost Durum, 0.25, 20% Boxes, 0.05, 4% Packaging Materials, 0.23, 18% Direct Labour, 0.10, 8% Operating and Marketing Costs, 0.35, 28% Overhead, 0.21, 22%

25. Sensitivity Analysis

26. Prairie Pride Pasta ??? Feasible under current financial model Feasible under current financial model Internal Rate of Return – 24.6% Internal Rate of Return – 24.6% Main obstacle: achieving sales quantity Main obstacle: achieving sales quantity Hiring bold and exciting sales manager Hiring bold and exciting sales manager Sales figures reflect growth that Prairie Pride Pasta will take into the future Sales figures reflect growth that Prairie Pride Pasta will take into the future

27. “ Prairie Pride Pasta is looking to become a recognizable, reputable, as well as profitable business in the value-added sector of Saskatchewan’s economy”