Detergent Term Paper (Term Paper Sample)

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Introduction
This paper will seek to develop new "green" powder soap for domestic washing. There is an increased trend of customers demanding green products. The powder soap will be used for cleaning clothes. A new firm will be established which will be involved in the production and distribution of the product. The plant will be set up in Illinois’ state in the United States of America. The powder soap will be sold under the brand name "clean powder soap”. The raw materials necessary for the manufacture of this soap as well as cheap and readily available labour are the driving force towards setting up this plant in this state. It is from the market survey that the firm can confidently state majority of the state’s resident have a higher preference for a green washing soap. This offers a suitable and favourable market in which the firm can target as its first market penetrating to other market in neighbouring states as well as going global. In order to gain market share at a first rate low pricing strategy will be used as well as aggressive advertising and promotional campaigns through mass media and tell a friend to tell a friend.
DESIGN THE PRODUCT
Raw materials
The washing detergent will require various raw materials in its production. They comprise of the hydrocarbons, boulders, chemicals and perfumes. Each of these raw materials has varying proportion of usage in the production process.
DESIGN THE PROCESSES TO MAKE THE PRODUCT
In order to achieve the desired quality standards the manufacturing of the detergent will be done using the agglomeration process which will enable the firm to manufacture the detergent continuously. It is intended to have a production capacity per hour of over 22,000 kilograms of the detergent. The agglomeration manufacturing process will involve putting the raw materials into the shuggi agglomerator which is a large mixing machine. The machine contains blades which are used for mixing the components. As the mixing continues other liquid raw materials are poured into the agglomerator through nozzles. The result is an exothermic reaction. It is after the reaction that the liquid materials are flowed out through a drying belt. It is exposed to air thereby crumbling as they move along the belt. The slurry method is the last stage in the production cycle. This is where the slurry will be blown with hot air thereby breaking into the desired powder ready for packaging and sale.
Process flow diagram
BREAKEVEN ANALYSIS:
It is from the break even analysis that the new detergent manufacturing firm can be able to determine at what point of sales profitability will will be achieved. It is at the breakeven point the firm cannot make any loss or gain. It is from the market research that we conducted that we can make this analysis. Research from the market showed that the products sales in the target market are likely to grow by 45% within the first year of market entry. The funds obtained from sales made in first year will be used to gain entry in other market in the following year and thus the sales are thereafter expected to grow by 70% in the next 4 years. Based on the prevailing costs of production estimates the firm is likely to break even by the end of 7 months. Within the next two months aggressive promotions and advertising will take place and therefore it is expected by the end of three months all residents of Illinois State will be aware of the new products and at least 50% of them will have purchased the product. When 7 months elapse the firm will have achieved its break even profit and thereafter start making profit. The long period before breakeven point is due to the low introductory pricing strategy that will be used. Profits are expected to be $100,000 at the end of the first year of operation.
Quality assurance
Quality assurance is crucial ...