Operations Plan
Hung Export
Introduction
The purpose of this report is to identify the proposed operational plan for HungExport, regarding the project of exporting Palinka to Cyprus. Included are the details on what department is in charge of what, details on how suppliers and vendors shall be used, and what is the product. It shall give a whole picture of how the work will be done, the work floe from input to end results, including resources used.
Background
Recently our marketing department has carried out extensive market research into the market for alcohol consumption in Cyprus. The results and the statistics taken from secondary market research show that the island has a gap in its segment for quality alcoholic spirits. Since our company expertises in the export of Hungarian products worldwide we took the initiative to fill in that market gap. Thus we have drawn up the plan to export Palinka to Cyprus.
Also another reason why we have decided to look at Cyprus as an opportunity is because of large influx of Cypriot tourists and nationals in Hungary. The main reason apart from tourism is also Hungary’s well spoken of education system. Since obviously Cypriot nationals like this country, we noticed this, we checked statistical analysis of the movement of expats in the country and figured that most sales of Hungarian duty free traditional products are bought by Cypriots. Hence another reason to start this project because there was a market need.
Departmental Responsibilities
Marketing Department
The marketing department here in Hungary the Headquarters of the operation and our own team in Cyprus, shall be in charge of the marketing plan and doing their best to support the product while it is already in the market. However prior to that the marketing plan will take the responsibility of carrying out the marketing campaign which shall be the important part of the product’s introduction to the market as first impressions are the most important. Also the marketing department will be the eyes of the project into the market, as it will be continuously monitoring the market for any changes and what needs to be done from our behalf.
Human Resource Department
The human resources department in Hungary and in Cyprus shall take on the responsibility of the continuous support to our team in Cyprus, which shall be handling the day-to-day matters in Cyprus and reporting them back to their individual departments here in Hungary. The support shall be through a 24 hour communication line between us and them, providing them feedback with every request they have or any issues they might come across.
Financial Department
The financial department shall be our most important department as they shall be keeping an eye on costs and making sure the project meets the estimates of the cash flow and the breakeven analysis. The team in Cyprus shall have the responsibility of making sure all costs are reported and that the quarterly estimates are met. Also they shall report back the finance department.
Operations Department
This department and its team in Cyprus shall be our crucial connections with the vendors in Cyprus. Their responsibility is to keep good connections with vendors and the transportation of the product once it lands in Cyprus through the airport. They will make sure that they clear it from customs with no delays along with our associates in Cyprus, who shall take care of local legal requirements. Another responsibility is too report daily back to headquarters so that the department in Hungary is well aware of the situation and of any problems that they may encounter. They shall be the team that ensures the smooth running of the project though its time.
Suppliers and Vendors
Suppliers
After a tender that was prepared and send out to all possible suppliers of Palinka, the supplier we have selected due to not only their better price but because they are one of the most well known producers of Palinka in Hungary. Thus our supplier of Palinka for the project shall be “Resangyal Palinka”, whom we have an open contract throughout the period of the operations in Cyprus. It has great local and regional reputation and its exactly what we want to represent the Hungarian spirit. The bottles of Palinka shall be sealed with the seal of the Hungarian government, showing the country of origin and also the quality regulations it passed. Resangyal Palinka shall supplies with the quantities that we requested and shall deliver them to the airport where they will meet by our operations department. This way we limit costs and keep a close contact and a close eye on the supplier and the product before it leaves for Cyprus.
Vendors
One the product gets to Cyprus our team representative their along with a local consulting agency and the vendors, shall receive the products, check them for any breakages or spoilages and then transport them to the outlets. Since the Palinka we are exporting has great quality we shall be pricing it at a premium thus it sold at exclusive shops. We have selected a vendor that has multiple delectates shops around the country, there the product will be placed as an up market spirit. Since we are targeting the older generation, these stores will be ideal for the true enjoyers of good spirit. The vendor we have chosen is Christos Illiadies Delicates Shops. The benefit of this vendor was that he has his own transport company as well and offered to do the transportation of the products to their final destination free off charge. Also he offered he offered us the best placement for our product and thus the reason for our selection. Relations with the vendors shall be kept tight with out operations team in the area. Also the vendor will be used as our primary area of connection to the customer in order to keep a close connections our operations will receive reports on customer reactions to the product and report them to both marketing department and operations depart, so that we can know our orders in advance.
The Product
Palinka a traditional Hungarian fruit brandy. It is most often made from various kinds of fruit; the most common varieties are made from plums, pears, or apricots. It may also be made from apples, cherries, mulberries, or quince. The first records of the Hungarian spirit sate back to the fourteenth century, and refer as “Aqua vitae reginae Hungariae”. The spirit had its use in medicine for certain cases of arthritis and for colds. Thus we considered Palinka to be the first product to export to Cyprus as this product truly represents the Hungarian spirit and our aim is to spread the Palinka culture to world, starting with one place at a time. Because it will be so popular, it will catch on and demand will be very high.