Juice Marketing

2010 Horlborn Consumers Ltd 6/14/2010 MARKETING PLAN OF V6 VEGETABLE succus Champion equal a thrive Prep argond for, Mr. Sajeeb Saha Course instructor De break inment of Agri art and selling Sher-e-Bangla awkward University Sher-e-Bangla Nagor, capital of Bangladesh-1207 Prepargond BY, 1. Md. Rashedul Haque07-2398 2. Md. Sharifur Rahman07-2326 3. Md. Wahidul Islam08-2776 4. Sayeda Razia Islam Nabila07-2470 5. Mahbubur Rahman08-3077 6. Md. Shahidul Islam08-2766 7. Md. Faisal Kabir Khan08-2778 8. Habiba Begum08-2684 LETTER OF transmittance To Mr. Sajeeb Saha Lecturer Department of Agri wrinkle and tradeingSubject Sub thrill of merchandiseing mean dear Sir This is our selling plan of V6 veg juice which is launched by Horlborn Consumers Ltd. In the meter of preparing this plan we had to face around problem al or so market placeplaceing and sales. entirely we try to apply our marketing experience as much as we learn. We prepare this marketing plan on the basis of o ur get knowledge and analogously on the lay awayed info from contrastive sources. If any(prenominal) instance of mis pee you nonify please suggest us. Sincerely yours, Md. Rashedul Haque07-2398 Md. Sharifur Rahman07-2326 Md. Wahidul Islam08-2776 Sayeda Razia Islam Nabila07-2470Mahbubur Rahman08-3077 Md. Shahidul Islam08-2766 Md. Faisal Kabir Khan08-2778 Habiba Begum08-2684 T able-bodied of capacity SerialNo. description Page number 01 Executive un ordained 7 02 companion abbreviation 8 2. 1 Location 8 2. 2 size of it and capacity 9 03 Product and improvement overview 9 3. 1 Categories of crossing 10 3. 2 Raw-materials of drudgery 11-12 3. 5 Nutrition 13 04 strategical plan 13 4. 1 Vision 13 4. 2 mission 14 4. 3 Goals 14 4. 3. 1 Financial Goals 14 4. 3. 2 Non- monetary Goals 14 05 Situation emergeline 15 5. 1 merchandising Summary 15 5. 1. 1 Market Demographics 15 5. 1. 2 Psychographics 16 5. 1. 3 Market necessitate 16 5. 1. 4 Consumer Insight 16 5. 1. 5 Market Tr remainders 17-18 5. 1. 6 Market Growth 18 5. 2 s.t.p. Analysis 18 5. 2. 1 Market Segmentation 18 5. 2. 2 Target Market 18 5. 2. 3 Positioning 19 5. 3 ram Analysis 19 5. 3. 1 Strength 19 5. 3. 2 weakness 19 5. 3. 3 Opportunities 19 5. 3. 4 Threats 20 5. 4 contention Analysis 20 5. 4. 1 Competitor Strength 20 5. 4. 2 Competitor religious servicelessness 21 5. 4. Points of Difference 21 5. 5 Competitive Advantage 21 5. 6 Key to Success 21 5. 7 Critical Issue 22 06 strategic Marketing Analysis 22 6. 1 Marketing Objectives 22 6. 2 Strategies 22 6. 3 Marketing mix 23 6. 3. 1 Product strategies 23 6. 3. 2 Pricing Strategies 23-24 6. 3. 3 Distribution pattern 24 6. 3. 4 publicizing & Promotion 25 6. 3. 5 node Service 25 6. 4 Marketing Research 26 07 Financial planning 27 7. 1 Financial Overview 27 7. 2 Sales look 28 7. 3 R even offue Forecast 29 7. outgo Forecast 30 7. 5 Profit Margin 31 7. 6 hesitate-even Analysis 32 08 Controls 33 8. 1 Implementation 33 8. 2 Marketing Organization 34 8. 3 Contingency Planning 34 01 Executive Summary A concrete marketing plan is one of the major tools of a vender to be successful in his business. As a student of Agricultural Marketing we were assigned to trade name a marketing plan. For this purpose we selected V6 veg juice as our proceeds and made a marketing plan of this crosswayion. Horlborn Consumers Ltd serves two the consumer market, as well as local eating houses.We entrust get through in developing a profitable business through the utilize of our twain competitive rewards, prize and flexibility. The local farmers of veggie stopnot build up comme il faut products to satiate local demand and also early(a) beverage fol show cadence cant able to satisfy the consumer through their product. We see this market opportunity and are prepared to seize it. Our mission is to provide the outliveer(prenominal)es t- lineament veg Juice. We exist to attract and keep on customers. When we adhere to this maxim, everything else depart f alone into place. Our run pull up stakes exceed the expectations of our customers.We con rig archetypal formed a phoner then as per requirement we generate given description of the business and current market situation. We have provides these details based on our own knowledge and collected information from different sources. Then we have discussed ab reveal our strategic plan, market summary, market trends and market growth. We did SWOT epitome, STP abridgment, aspiration analysis and also our competitive advantage. We also provide marketing strategy, bell strategy, and also scattering channel. We mentioned our local and advertising and promotional activities.Then we included our financial plan and also our implementation plan. 02 smart set Summaries * Legal Name Harlborn Consumers Ltd. * handicraft name Harlborn Consumers Ltd. * Business Addre ss Factory (Manufacturing Plant) Ishurdi EPZ, Pabna. Head Office duplicate Builders Complex, 52/A Motijhil,Road 13/C, Motijhil, Dhaka. * E-mail emailprotected com * Website www. harlborn. v6. com * Phone +88013670487 * Fax 91-3483-244441. sheath of Organization Partnership 2. 1 Location * Plant Location We have to select a better manufacturing establish as well as the scattering place.In favoring the environmental factors as considered for the hygienic manufacturing plant as promote the Ishurdi EPZ which area is much free from the violence of political disturbance & other hindering factor. * ex diversify office our goat dispersal place is Dhaka di imaginativeness with other renowned districts of the noteworthy division of Bangladesh. So, our central official point is situated at the twin builders heterogeneous at Motijhil. In other districts our own distributor sends our products through low cost with our great acid facility. 2. 2 Size & capacity Establishing the man ufacturing plant the size of capacity is a great factor to run the unanimous processing plant. Size & capacity should be effective for proper nominateing. * In total we carryulate 5600 square feet to move freely. * A sm completely parcel out of that place w delirious be used as a ascendance office. * Warehouse free space to store & preserve the raw materials. * Central office space is about 4000 square feet. 3. 0 Product and Service overview Product and armed service overview includes categories of product, raw-materials of product and also the viandsal value of the V6 veggie Juice. . 1 CATEGORIES OF PRODUCT There are six season in Bangladesh. Among them pass is the most vital season for colossal production of kelvin vegs. We select winter vegetables for our juice production. So our target product is winter vegetable juice. We carve up our product into triplet types on the basis of their burthen and size. 1 liter500ml200ml 3. 2 Raw Materials of Product vegetables are an essential part of any red-blooded diet. Vegetables provide nutrients, such as potassium, magnesium and vitamins A, C and E that are vital for overall health and maintenance of your body.Thats why we select future(a) vegetables. Tomato Tomato provides powerful, natural antioxidants. The antioxidant Lycopene is found naturally in tomatoes, and helps protect a givest cell damage. Cabbage It helps to round out your diet with other vitamins, minerals and natural antioxidant Carrots Delivers vitamin A (alpha- and beta-carotene) to help fight down vision and a healthy immune system Lettuce One cup of iceberg lettuce lettuce has only 10 calories Spinach Supply huge amount of vitamin A E K C & with calcium vigor and iron flood cabbageIt gives us vital amount of vitamin A & C with high amount of protein calcium and iron 3. 3 Nutrition Example nutrition information for V6 Vegetable Juice Nutrition Data Servings per package 1 Serving size 250 ml Average qty per serving Average qty p er snow g Energy 165 kJ (40 cal) 66 kJ (16 cal) Protein 2. 4 g 1. 0 g Fat arrive nada Nil Saturated Nil Nil Carbohydrate Total 6. 3 g 2. 5 g Sugars 6. 3 g 2. 5 g Sodium 660 mg 263 mg Vitamin A 325 g (40%) 130 g Vitamin C 52 mg (130%) 21 mg 04 Strategic PlansThe unfermented marketing plan has veritable its strategies by digesting on the vision, mission, goals as well as its incumbrance competency. 4. 1 Vision We envision a marketing system that quickly and efficiently moves wholesome, affordable agricultural products from the farm to the consumer. Our target customer, they can take the nutrition of the vegetable. Our product must be diversified as the consumer need. We have to create our market demand and grow consciousness among the mass. At introductory we have to capture our local market within two age and we leave start to export our product within five years. 4. 2 MissionOur mission is to provide the highest-quality vegetable Juice. We exist to attract and maintain customers. When we adhere to this maxim, everything else go forth fall into place. Our services will exceed the expectations of our customers. We also focus on the following missions, * Hygienic solid food * Finest quality of our product * Keeping the affordable scathe * Provide best customer service * Provide energetic and nutritious food 4. 3 Goals We divided our goals into two part, financial goals and Non-financial goals. 4. 3. 1 Financial goals 1. Realize a 5% improver in gross profit margins through efficiency gains every year.Reduce the transportation costs associated with product delivery by 10% by the end of the first year. 2. We will address break-even analysis, sales forecasts, expenses forecasts, and how those link to the marketing strategy. 4. 3. 2 Non-financial goals 1. Maintain positive, steady growth each month. 2. Experience an increase in new customers who are turned into long-term customers. 3. Generate brand fairness at the Farmers Market as well as within the commercialised restaurant industry market. 4. Awareness regarding services offered, develop the customer base, and bat toward building customer loyalty. . To enter into new market. 05 Situation Analyses V6 vegetable juice is a start-up business. The vegetables have been well received and marketing is now minute to its continued success and future profit major power. Harlborn offers a wide range of high quality vegetable juice. The basic market need is high quality vegetables with flexibility of production for both the consumer and commercial market. 5. 1 Market Summary We possesses good information about the market and knows a great bonk about the common attributes of our most prized and loyal customers.We will leverage this information to better understand who is served, their specific postulate, and how we can better communicate with them. 5. 1. 1 Market Demographics The profile for our customer consists of the following geographic, demographic, psychographics and behavior factors. Individuals demographics * Singles and families. * Childrens * delirious people * Ages 25-50, this segment returns up 53% of the market according to the Chamber of Commerce. * Have att stop college or alumnus school. * Are cognizant about their health * Female aged 30-52 * operate to eat out at least once a week. fashion Factors Are willing to pay a premium for higher(prenominal) quality, tastier vegetable juice. * There is value attributed to the more attr officious beverage of vegetable juice. * fuck a high-quality juice without the mess of making it themselves. 5. 1. 2 Psychographics * Moderate affaire with product corrupt, seeking information about health benefits and nutritional facts of V6 products * thoroughly educated, hard working and active females with a desire to provide a healthy lifestyle for themselves and their family * Time poor people, struggling to manage theirs and their families active lives who seek an easy solution to roviding nutrit ional beverages as an alternative to gentle drinks * Females who take both an emotional and rational approach to buying their families food * Prone to moderate levels of emotional attachment with brands * Eager to seek out the most consistently nutritious beverage products 5. 1. 3 Market call for We provide individuals and restaurants with high-quality vegetable juice. We seek to fulfill the following benefits that are alpha to their customers. Selection A wide choice of different vegetables with the flexibility to change bring downs midseason. * Competitive ask Sugary tardily drinks are low in nutritional value to recover this in that respect needs a healthy and long lasting energy drinks. * Customer service The patron will be impressed with the level of attention that they receive. * Competitive pricing every last(predicate) products will be equipment casualtyd competitive to true substitutes. 5. 1. 4 Consumer InsightThe consumer insights are listed from most important to least important for the target audience The need for a healthy alternative to downy drinks * Sugary soft drinks are low in nutritional value * Over indulgence of soft drinks leads to poor eating habits * Needs a variety of beverage choices * Needs a way to gain healthy long lasting energy * Have fast paced lives and do not have date to make healthy meals every twenty-four hour periodtimePassionate about their and their familys health and well being * sincerely concerned about the overall health of their families * V6s high volumes of vitamins and antioxidants consecrate to healthy family members * Provides a solution to the worry of what to feed to themselves and their children with little post purchase regret * Want to maximize on opportunities to save time and effort by purchasing a quality product * passing likely to put their families needs in front of their own * Needs to feel good about their dietary closes and give them a wiz of empowerment * Peer pressure forcing t hem to have the perfect healthy family 5. 1. 5 Market Trends The market for vegetable juice has exploded within the last few years. Explanations for this trend are, * Market run The increase of supply has fortify the demand.Within the last few years many farms that were producing grains have moved to production of vegetables because of the increase margins and market demand. * Health consciousness Now a days Bangladeshis have become more health conscious and vegetable have nurseed this goal as juice are inherently healthy and a vegetable mix juice is far tastier than the others juice. * Presentation/appearance Presentation as an element of the culinary experience has taken on more value as juice has become more creative over the last several years. 5. 1. 6 Market Growth We are learning to appreciate the more advanced(a) taste of this health food. Therefore taste and health consciousness is what is driveway this demand. This demand can be seen by the increase of juice offerings by finer restaurants.Lastly, presentation is becoming a variable in gauging the quality of a product, and a mix for vegetables as juice is very aesthetically pleasing. 5. 2 STP Analysis The following STP analysis consists of market segmentation, target market and positioning. 5. 2. 1 Market Segmentation We have section our customer into three groups. * Individual consumers * Restaurants and * Hospitals 5. 2. 2 Target Market * Children * Sick people * Active adult female * School, College, and Universities students * Old aged people * Time poor people 5. 2. 3 Positioning V6 juice helps to maintain good health, when time is short, which create a value in consumers theme about this product and motivate rheumy to buy frequently. Horlborn will position itself as * Flexible. * utmost-quality maker. Professional. * Reliable 5. 3 SWOT Analysis The following SWOT analysis captures strike strengths and weaknesses within the company and describes the threats facing Horlborn Consumers Ltd for marketing V6 vegetable juice. 5. 3. 1 Strengths * Availability of seasonal vegetables throughout the year. * Flexibility in confluence vegetable needs. * Flexibility in meeting restaurants needs. * High-quality product offerings that exceed rivalrys offerings of price, quality, and service. * Higher than industry margins due to production efficiencies. 5. 3. 2 Weakness * V6 Vegetable juice lacks brand equity. * A limited marketing cipher to develop brand certainness. The decreased degree of flexibility when near ripe production. 5. 3. 3 Opportunities * Growing market with a significant percentage of the target market still not aware that vegetable juice exists. * The ability to develop long-term commercial contracts which should lower costs associated with production. * Children prefer juice than others meal. 5. 3. 4 Threats * An out of state, already complete contention that has decided to make customer service and flexibility their selling point. * A health affright th at questions the safety of V6 vegetable juice. * Poor weather which will affects the market of V6 vegetable juice. * Customers are very much habitual to take vegetables as green. 5. Competition Analysis Though V6 vegetable juice is a new product in the market but there are some similar products also. Basically the beverages, fruit juices and vegetable products are the major competitors. The competitors are divided in two Direct Competitors Beverages and fruit industries, like- Pepsi, coca cola, PRAN juice, ACMI juice, Frutika etc. verifying Competitors Raw vegetable markets, vegetable by products (biscuits, soups, snacks), some healthy drinks like Boost, Flavored milk etc. 5. 4. 1 Competitors Strength 1. Established brands- the competitors have established brand like Coca-Cola, Pran. etc. But we the new comer. 2.Product supply- the competitors product supply is very larger than our product. 3. Price- the products are similar price like us. 5. 4. 2 Competitors Weakness 1. Quick, ta sty and healthy alternative to soft drinks and colas. 2. Diet V6 juice has high levels of vitamin A & C, at the requirements of consumers unremarkable values. 3. General consciousness among the consumers of bad effect of soft drinks. 4. Soft drinks can be high in sugar which can be a main deterrent for consumers. 5. 4. 3 Points of Difference The point of difference that makes this vegetable juice than the others are- * New idea- Vegetable juice concept is first in Bangladesh in the juice industry. Different experience & knowledge- The customers will have the characteristic feelings & experiences that they will not get although other drinks exists in market. * Strong distribution channel- As this product has strong channel distribution channel, the consumer get it at every retail shop. 5. 5 Competitive Advantage Our competitive advantage is really a superior one 1. 100% vegetable juice. 2. High contents of vitamin A & C. 3. Low levels of sodium. 4. Less fat & calories than other dr inks. 5. spicy & healthy. 5. 6 Key to Success Exceed the customers expectations. Additionally, Harlborn consumers Ltd will * Generate ring business Increase the transactions amount per customer. * Increase the number of restaurant accounts. * Increase variety of juice. 5. 7 Critical Issue Harlborn consumers Ltd is still in the speculative stage as a V6 juice maker. Its critical issues are to continue to take a modest fiscal approach plump out at a valid rate, not for the sake of expansion in itself, but because it is economically wise to and continue to build brand awareness to lower future marketing costs. 6 Strategic Marketing Analyses Strategic marketing analysis includes marketing objectives, marketing strategies, marketing mix, and market research of V6 vegetable juice. 6. 1 Marketing ObjectivesThe objectives of all integrated marketing communications will be to * Inspire consumers to view V6 in a new more vibrant light * Empower the female target audience about their die tary decisions * Showcase the nutritional benefits and great taste of all V6 products * Establish a connection between V6 and healthy active lifestyles 6. 2 Strategies The single objective is to position vegetable juice as THE finest producer of vegetable in Bangladesh, commanding a majority of the market circumstances within five years. The marketing strategy will seek to first create customer awareness regarding services offered, develop the customer base, and work toward building customer loyalty. We seek to communicate the meat that we are the finest producer of high-end vegetable as JUICE. This message will be communicated through a variety of methods. The first method will be advertisements.Some of the advertisements will be co-branding with the Farmers Market. Other advertisements will be solely Harlborn advertisements. The ads will be located in both the local newspaper as well as the local art/entertainment paper. The message will also be communicated to the different ho spital through networking with owners and managers. We will also communicate our message through informal gatherings and networking with consumers and hospital owners. 6. 3 Marketing mix V6 Vegetable Juice marketing mix is comprised of the following approaches to product, price, distribution, advertising and promotion, and customer service. 6. 3. 1 Product strategiesBasically at the beginning we are producing only vegetable juice made through winter vegetable. Afterwards we will produce juice made through summer, year-round vegetable, souses etc. Since our product fulfills both vegetable needs and beverage needs it will be competing with both green vegetables and beverage drinks. 6. 3. 2 Pricing Strategies Pricing strategies are most important stage in marketing mix. As we are freeing to launch a new product in the market, we do not have any idea whether the price would be accepted or not by the customers. If we select extensively high price, customers will not buy and volume of sa les will be very low. On the other hand setting lower price will not cover our costs.So we have to consider the following things in selecting price. * Acceptance of product As our product faces competition against both green vegetables and beverage drinks, price of our product should be accepted by customers. Our product fulfills both vegetable needs and beverage needs. For this extra utility we will charge higher price than our competitors. * Maintaining market share If our product is accepted by customers in near future, more competitors will enter in the market. So our price should be such that can protect our market share in the competition period. Moreover we will need to lower the price to restrain the market share at the time of competition. * Earning profitAs a business our main objectives is to earn profit. So we should not set any price that will not cover the cost of the product. After cover charge the cost we set a profit margin for our pricing. After analyzing all of this we select Market-oriented pricing that is setting a price based upon analysis and research compiled from the targeted market and also with the cost. 6. 3. 3 Distribution Strategies In principally there are different types of marketing distribution system. Consumers are able to buy the products from different market place. All these distribution strategies are consists of producer, wholesaler, retailer, and in the end to the consumer.There are mainly four types of marketing distribution channel 1. pompous Marketing channel 2. Vertical marketing channel 3. Horizontal Marketing channel 4. Hybrid Marketing channel We select the conventional marketing channel to distribute our product. Our juice will be distributed by the specify distributor which will be selected by the company. The selected distributor will supply the juice product to the wholesaler and also to the retailer and the consumer will collect the product from the retailers. There are three types of distribution stra tegies 1. Selective distribution 2. Intensive distribution 3. Exclusive distribution We choose the intensive distribution for our product.We will supply our product all over the country on the basis of our product demand so that the consumer can get the product easily. 6. 3. 4 Advertising and promotion A mixture of advertisements and networking will be used to increase visibility for V6 vegetable juice. In first we will be focused on introducing the product. The advertisement will be do on different media e. g. television, newspaper and billboard to make people aware of the product. Promotional activity We make promotional activities for our product in different school, college, hospital, and restaurant. * Advertising themes will be changed with time and promotional activity will be carried out to generate the consumer. * In different occasion we ill open special sales center where attractive point of purchase display would be arranged to create positive image in consumers mind. * We will provide different incentive to our distributor. * Sometimes we will offer free sampling for the mass sale of product. 6. 3. 5 Customer service Obsessive customer service is the mantra. Horlborn consumers Ltd philosophy is whatever needs to be done to make the customer happy must occur, even at the expense of short-term profits. In the long term, this investment will pay off with a fiercely loyal customer. 6. 4 Marketing Research During the initial phase of the marketing plan development, several focus groups were held to gain insight into prospective customers.These focus groups provided helpful insight into the decision making processes. An additional source of dynamic market research is a feedback mechanism based on a tincture card system. The suggestion card has several statements that customers are asked to rate in terms of a given scale. There are also several open ended questions that allow the customer to freely offer constructive criticism or praise. The V6 vegetabl e juice will work hard to implement reasonable suggestions in order to improve their service offerings, as well as show its commitment to the customer that their suggestions are valued. The last source of market research is competitive analysis.The Horlborn consumers will send people to local competitors to gain information about their product offerings. Financial Overview As we start our business in the year of 2011, we cant expect a huge sales as well as huge profits. But our market research says that there is a good potentiality of this unique feature product. We project our sales will be keep rising conterminouss year. More ever promotion and advertising will help in increasing sales. At the very first of our business our mission should be emphasis on promotional activities and recognizing the product at every level. Now we are showing our five year communicate plan. Description 2011 2012 2013 2014 2015Total Revenue (200000*22)+(80000*38)+(100000*68)=14240000 (310000*22)+(15 0000*38)+(200000*68)=26120000 (460000*22)+(250000*38)+(310000*68)=40700000 (750000*22)+(500000*38)+(600000*68)=76300000 (850000*22)+(650000*38)+(750000*68)=94400000 Variable Cost ( Raw-materials, marketing, advertising, Promotion) (200000*16)+(80000*30)+(100000*56)=11200000 (310000*16)+(150000*30)+(200000*56)=20660000 (460000*16)+(250000*30)+(310000*56)=32220000 (750000*16)+(500000*30)+(600000*56)=60600000 (850000*16)+(650000*30)+(750000*56)=75100000 Fixed Cost ( Land, Factory, Office, Storage) 5000000 5000000 5000000 5000000 5000000 Total Cost 16200000 25660000 37220000 65600000 80100000 Profit Margin -1960000 460000 3480000 10700000 14300000 Sales Forecast The first three months of first year will be used to set up the processing and manufacturing plant for the production of V6 vegetables juice. There will not be sales activity until the processing plant has established.From month four there will be a steady increase in sales. soma Sales Forecast Revenue Forecast As in the ord inal month our product sales started and its will be increasing day by day our revenue also will be increased potentially. This growing revenue is shown by the following graph. Fig Revenue Forecast Expense Forecast Marketing expenses are budgeted to analysis the year-wise expense of Horlborn Consumers Ltd. The projected expenses for five years are shown by the following graph. Fig Expense forecast Profit Margin The progresses of Horlborn Consumers Ltd are measured by analysis the yearly profit. These are shown by the following graph.Fig Profit Margin Break even Analysis The Break-even Analysis indicates 25890000tk will be needed in yearly revenue to reach the breakeven point. 8. 0 Controls The purpose of V6 vegetable juice marketing plan is to serve as a guide for the organization. The following areas will be monitored to gauge performance * Revenue annually * Expenses annually * Repeat business. * Customer satisfaction. 8. 1 Implementation The following milestones identify the key marketing programs. It is important to accomplish each one on time and on budget. As successful entrepreneur we must fix the comminuted action plan with when we are going to perform that.There are some primary activities (planning, permeation from Government) that we assume we have already performed. 8. 2 Company Organogram CEO DIRECTOR question HR Chief Finance Chief marketing Chief IT GM IT & Planning GM Finance & Accounts GM HR Operation GM Product & Service GM HR Training GM Corporate GM Sales & Distribution GM IT & Operation 8. 3 Contingency Planning Difficulties and risks * Problems generating visibility. * An already established competitor that chooses to compete on quality and flexibility. * Poor weather which could hamper crop yields. Worst case risks may include * Determining that the business cannot support itself on an ongoing basis. * Having to liquidate equipment to cover liabilities.