PROJECT
REPORT
SUBMITTED TO:
SUBMITTED BY:
ACKNOWLEDGEM
ENT
Our special thanks to Madam Sadia who arranged an
entrepreneur project work for us. The work is done under the
supervision of our worthy teacher Madam Sadia who provided
us with her kind guidance at each and every step whenever we
felt difficulty and she made us capable of making this project
report.
Executive Summary
We completed this business feasibility report as our
entrepreneurship project supervised by our worthy MADAM
SADIA. As there are various famous and regional food items in
Pakistan which have high demand in food markets all over
Pakistan but they are not readily available in every region hence
we decided to sell these food products to customers in Multan,
Lahore & Islamabad firstly than we expand our business to all
over the Pakistan. We completed this project with great effort
and group coordination. We prepared business feasibility
regarding different areas of business which include operations,
human resource, marketing and finance. The explanation
feasibility of each area is explained in this report. After
completion of this project we concluded that the business is
highly feasible and profitable.
Selection of Project
We selected this business as our project with the consent of our worthy madam and after several group
discussions. One of the key success factor of this business in that it is very much innovative and is not there in the market in Pakistan.
Business Model
The model of our business is the business to consumer model. This means that we will sell the products of
famous food suppliers directly to customers.
Brand Name
We decided the brand name for this business that is
“SAUGHAAT”. We selected this brand name because this name represents and explain this business in a better way and it reflects our business as Saughaat is a word used for traditional, high quality and famous food items.
Mission Statement
“OUR MISSION IS TO ENHANCE ACCESSIBILITY
OF FAMOUS FOOD ITEMS FOR PAKITANI”
Business Objectives
The main objective of our business is to generate
maximum profits by providing the people of Multan with the access to several traditional and famous food items from different regions of Pakistan. Other objectives could be providing employment opportunities, contributing to economic growth by enhancing sales of food item
PRODUCT LINE
Our product line includes the following products at the start but new additions would be made after the business becomes operational. This would be done after examining the consumer needs and demands regarding food items.
a. SOHAN HALWA MULTAN
b. NIMKO KARACHI
c. PAIRAY MARDAN
d. SPICES HAIDERABAD
e. PICKLE SHIKARPUR
f. REVRI CHAKWAL
g. DRY FRUIT PISHAWAR
h. BURFI MIAN CHANNU
i. DATES BAHAWALPUR
1. CUSTOMER PLACES ORDERS ON WEB SITE 2.CUSTOMER PAYS
THROUGH CREDIT CARD 3.PAYMENT TRANSFERRED TO BANK ACC. .INSTRUCTIONS BY C.S.R TO SPECIFIED SALES REPRESENTATIV E C.S.R TAKES
FOOD ITEMS AND SEND THEM TO CUSTOMER ADDRESSES THROUGH COURIER SERVICE CUSTOMER RECEIVES FOOD ITEM AT HOME
OPERATIONAL PLANS
CUSTOM ER CUSTOMER SUPPORT REPRESENT ATIVE SALES REPRESENT ATIVE COURIE R SERVICEEXPLANATION
Ordering procedure:
Customer can order our food items by browsing our web site which could be www.saughaat.com.pk . The food items we are offering will be available on our web site with their prices and their specifications. Customers would be able to order for any item after few clicks on our website.
Payment procedure for customers:
Customers can
• Pay the bills by credit card
• Pay with the help of Telenor Easy Paisa facility from any telenor franchise near to their location.
• In case of credit cards the payment would directly be
transferred to the company’s bank account and top management would be able to access that account.
Customer’s order will be treated by
the company:
After the order has been placed by customer, he/she has provided required information on our web site and has paid the price for the ordered food item then the customer support representative will receive that order at
that the representative will send instructions to the sales representative about the number of items to be sent and the addresses of the customers. The sales representative will then contact the supplier.
Company delivers the products to
the customers:
After receiving instructions by the customer support representative from head office, the customer sales representative will take the food item in required quantity and will send that item to the customer’s address through courier service and the food item will be delivered to the customer within 1 or maximum of 2 days.
Location Feasibility
As at the start our major focus would be on increasing brand image and sales promotions hence we would incur more costs on these activities. Hence at the start we will open our office in some cheap places in Multan,
Islamabad & Lahore. For example in Mumtazabad Multan.
Other Organizational Involvements
The organizations which will be involved in our operations are
1.Habib Bank Ltd (for credit card transactions and bank accounts)
2.Telenor Easy Paisa (for payment by customer) 3.O.C.S (courier servive for delivery of food items)
ORGANIZATIONAL STRUCTURE:
OPERATIO NS C.E.O MARKETI NG & OPERATIO NS DEPARTME NT OPERATIO NS MANAGER, ASST. FINANCE DEPARTMEN T FINANCE MANAGER, ASST. MANAGER, ACCOUNTAN MARKETING AND SALES DEPARTMENT MARKETING MANAGER, ASST. MANAGER, E.BUSINESS MARKETERS AND REGIONAL CUSTOMER SALES AGENTS AND REPRESENTA TIVES, CUSTOMER BANK (H.B.L. UBL,ALFALA H), COURIER SERVICES (OCS), REGIONAL FOOD SUPPLIERS (e.g HAFIZ SOHUN HALWA, MULTAN)MARKETING PLAN
WEBSITE PLAN:
The following sub-topics outline our plans to create and maintain our website. At first, we will have a simple text and image-based website which outlines our products and redirects customers. After the first three months, we will begin online ordering via our own website as well.
Website Marketing Strategy
Our website will provide information about us and our products as well as order processing to purchase our products online. We will include our web address in all of our advertising to reinforce to our customers how to find us online. Our company logo and motto will also need to be eye catching and easy to remember so that once our customers find us, they will remember us and suggest us to their friends and family.
Development Requirements
Initial Development
We will be working with an outside contractor to design the layout of the site. Initially, our site will provide an overview of the company, describe our products and services, and redirect visitors to our store to purchase a SAUGHAAT. The estimated costs for initial website
Full website (including online
ordering)
In the third month of the plan, when we have a better sense of customer preferences, we will finish the development of the site to include online order processing.
Once the website design is complete, we will contract for ongoing maintenance and support of the site.
TELEPHONIC PLAN:
In this section we mentioned that how the customer can contact us through telephone channels.
Telephonic numbers:
We need some contact numbers for a relationship with our customers. So there are many possible networks and numbers through which users can sms and make a call for business dealings. Here are some suggested numbers.
03333764428 03322764428 03003764428 03455764428 etc
All above numbers have SOGHAT alphabets on the phone and mobile keypads by dialing 764428 which will make ease to remind our contact numbers. Ultimately make a business worthwhile.
We will affiliate our promotion with an SMS Networking with different telecom companies for the best achievement of our business goals.
OVERALL MARKETING STRATEGY:
We are using both scope and differentiation strategy as there is no as such business already existing in the market and our service creates differentiation, moreover a scope strategy helps us focus different cities and we plan to expand our product line and target more segments in near future. Our goals are,
• Providing an introduction to food items (options) for buyers in different cities.
• Helping businesses with established recognition to enhance their sales.
• Creating a time-efficient way to meet the requirements of many potential clients at once.
• Maintain tight control on cost during expansion.
MARKET POTENTIAL:
There is a strong market potential for our products as the target market is middle age to old age people. Sweet (sohun halwa, barfi, etc) are sold like hot cakes whenever the wedding season is at peak. So we see the great market potential for our products.
We can grab a major market share from the customers all over Pakistan throughout different cities.
PRODUCT PRICING:
The product pricing is done as follows. The selling price of each product is approximately 100 or 120 percent more than its cost price including all the delivery charges etc.
PRODUCT LINE:
1 SOHAN HALWA MULTAN 400/kg 2 NIMKO KARACHI 300/kg 3 PAIRAY MARDAN 350/kg4 SPICES HAIDERABAD 500/dzn.spices 5 PICKLE SHIKARPURA 500/800gm pack 6 REVRI CHAKWAL 375/kg
7
MIX DRY
FRUIT PISHAWAR 1250/kg 8 BURFI MIAN CHANNU 500/kg
9 DATES BAHAWALPUR 550/5kg pack 10 MANGO SHUJABAD-MULTAN 1050/5kg
Distribution channels:
Our main distribution channels will be courier’s services which will cause both cost and time efficient for the delivery to the many cities and town of Pakistan.
Motivating the channel:
We will encourage courier Service Company to pay an important
attention to our orders. And we will also heir some part time employees such as students for some areas where we have some large number of orders on salary and commission bases.
Criteria for evaluating distributors:
There will be criteria to evaluate the performance of our distributors to keep on rotating orders fast and efficient. If there are not fulfilling the criteria warnings will be there and for good work, a reward will be for the distributors.
Locations:
We are going to target almost every possible place in Pakistan where Saughaat can approach directly through our courier service partners.
As we are online and telephonic system based dealers so there is no need for logistics, but order fulfillment is a key aim of business. Order
fulfillment method is explained as above in marketing strategy under the head of website and telephonic plan.
PRODUCT DESCRIPTION:
Products we are offering are the specialties from different cities of Pakistan. Each of the products is not available at every city.
EXAMPLE:
Multani sohan halwa: sweet, semi hard form, bar shape.
Nimko : nut snacks, fried ,salty.
Similarly all of our products have different features and different packaging.
COMPETITIVE COMPARISON:
As in the Pakistani food items sell online segment, there are a few dealers such as
• Ali Baba,
• 21Food
• Tohfay
They are the saughaats dealers. But all these dealers are not specified in food items and saughaats. So they could be a rival but the chances of competition are very low. But we should be cost and time efficient to avoid the competition .That will enable us to get the maximum competitive advantages in our segment.
Financial plan
Initial investment:
Web site development cost 30000
Office on rent in 3 cities (12000/month) 36000
Employees cost 200000
Marketing cost 72000
Utilities 75000
Equipment 30000
Furniture and fixtures 350000
Total 793000
PRODUCT LINE AND PACKAGING:
1 SOHAN HALWA MULTAN 400/kg
2 NIMKO KARACHI 300/kg
3 PAIRAY MARDAN 350/kg
4 SPICES HAIDERABAD 500/dzn.spices
5 PICKLE SHIKARPURA 500/800gm pack
6 REVRI CHAKWAL 375/kg
7 MIX DRY FRUIT PISHAWAR 1250/kg
8 BURFI MIAN CHANNU 500/kg
9 DATES BAHAWALPUR 550/5kg pack
10 MANGO
Projected Quarterly Sales
ITEMS PROJECTED QUANTITY*PRICE PROJECTED SALES
SOHAN HALWA 3500kg*400 140000/quarterly Nimko 5000kg*300 150000 PAIRAY 3500kg*350 140000 SPICES 7000 sets*500 350000 PICKLE 1200packets*500 60000 REVRI 2000kg*375 75000
MIX DRY FRUIT 1200kg*1250 150000 BURFI 3000kg*500 150000 DATES 600packs*550 33000 MANGO 2500packs*1050 262500 Total REVENUES 1595000
Projected Profit and Loss
Pro Forma Profit and
Loss Year 1 Year 2 Year 3
Sales 6380000 6738000 6978000 Direct Cost of Sales 4877200 4887200 4977200 Other 0 0 0 Total Cost of Sales 4877200 4887200 4977200 Gross Margin 1502800 1850800 2000800 Payroll 396000 396000 396000 Sales and Marketing and Other Expenses 72000 73000 75000 Repairs & Maintenance 6000 6180 6365 Office Supplies 2400 2472 2546 Rent 432000 432000 432000 Other 0 0 0
Profit Before Interest and Taxes 594400 941148 1088889 Taxes Incurred 10955 15596 18599 Net Profit 583445 925552 1070290 Net Profit/Sales 9.14% 13.74% 15.34%
HUMAN RESOURCE PLAN
Human resource planning refers to the development of strategies for matching the size and skills of the workforce to organizational needs. It assists organizations to recruit, retain, and optimize the deployment of the personnel needed to meet business objectives and to respond tochanges in the external environment. The process involves carrying out a skills analysis of the existing workforce, carrying out manpower
forecasting, and taking action to ensure that supply meets demand. As the competition for skilled employees is becoming even tighter, we need to be proactive in HR planning if we want to continue to build a high performance, high involvement, and inclusive workplace.
FOLLOWING STAFF WILL BE
NEEDED:
1.
MANAGERS
HR Manager Finance Manager Operations Manager
2.
ASSISTANT MANAGERS
2 Sales Promotion officers Assistant HR Manager
Assistant Finance Manager Assistant Operations Manager
3.
OTHER STAFF
Order handling officer Accountant
Cashier Storekeeper
Front Desk Coordinator
PAY SCALE FOR DIFFERENT
LEVELS OF EMPLOYEES:
• MANAGERS- Rs. 25000
• ASSISTANT MANAGERS- Rs.
17000/-• CUSTOMER SUPPORT REPRESENTATIVES- Rs.
10000/-• ACCOUNTANT- Rs.
11000/-• CUSTOMER SALES REPRESENTATIVES - Rs.
7000/-• STOREKEEPER- Rs.
7000/-• FRONT DESK CO-ORDINATOR- Rs.