furfact pet store

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Business Plan of

Furfect Pet Store

IntroductionWe have named our business

Furfect Pet Store

Locality of the businessFurfect Pet store is located on University road nearTehkal and is situated on main G.T. road.

Nature Of BusinessWe provide people with all kinds of pets ranging from animalsto birds and fishes. We also provide veterinarian services forthe animals. We also provide decontamination, cleaning andtrimming services for your pets. Our products include pets, petsaccessories and synthetic cloths and products to replicate theeffects if fur for medicinal services.

Mission statement

Our mission is to provide Peshawar cantonment and universityarea with a great selection of high quality Pet, Pet Products and

Pet Foods at the best price possible. And to not only give

people a loyal companion but a 24 hour on the go therapy

treatment mechanism.

Vision statementProvide the Khyber Pakhtunkhuwa province with the highestquality pets and supplies, expert advice and veterinarianservices while providing a friendly and fun work and shoppingexperience. And to create a brand name that people remember

pets by the name Furfect Pets store.

SloganLive healthy with loyal companions

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Executive Summary

Furfect Pet Store offers pets and services for pets. we provide clean,healthy and decontaminated pets that often prove to be worthy and loyal

companions. Our clients are pet loving people. We also satisfy needs ofpeople who are looking for means to reduce tension, blood pressure andstress with therapy method without the use of medicine. We also offer avariety of pet care services 24 hour a day all in the environment that ishealthy for Pets. In Pakistan the pet store business has not flourished thatmuch and need new innovative minds and ideas to set a strong market inthe coming years. Our market research has shown that around 6 out of 10people like pets and are willing to buy them. Furfect Pet Stores marketingstrategy is to emphasize on quality, health and cleanliness of pets andtheir owners. Providing all necessary precautionary measure for pets andowners. Owner will evidently find happy, friendly companions who have

already been trained welled and are healthy, loyal and loving. All petservices will be provided by staff trained in animal care.

We are only starting up as Pet Store, pet clinic and pet accessoriessuppliers. We plan to start up a 24/7 pet ambulance service in the nexttwo years. We will start-up an online store with free delivery services inthe next five years.

From the authors

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Description of the business

ProductsWe sell different breeds of animals, birds and fishes. We also

sell pet supplies, accessories and a synthetic cloth and productcreated from it that replicates the effects of animal fur.

ServicesWe provide veterinarian, training, trimming and

decontamination service for pets.

Owners BackgroundThe owners are all young, energetic and innovative business

students who are related to the different field of businessstudies.

1. Ahmed Ali Syed the first unlimited partner is good at

managing personnel and is related to the field of human

resource.

2. Syed Mehdi Uz Zaman Gillani is the other unlimited

partner with no say in the business he is the inactive

partner only providing the finance and is related tti the

field of finance

3. Waqar Ahmad the first limited partner is also related to

finance and is also the chief finance officer for business

4. Tayyaub Khalid the last partner is the head of marketing &

sales and is also affiliated with that particular field

Business Objectives

1. Earn favourable profits2. Create a brand name that is known to all3. Create awareness regarding pets and their advantages4. Move government to create animal protection laws5. Provide pet care services6. Make pets legally a mode of therapy for tension7. To create synthetic clothing that reproduces effects of

animal fur. (for animal with allergies to the animals)8. Providing products for animal safety, feeding and

housing.9. work for strict punishment to animal offenders

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Organizational Plan

Legal form of the business

The business is legally a limited liability partnership. WithAhmed Ali Syed and Syed Mehdi Uz Zaman Gillani are the

unlimited partners and others are limited partners and have

limited liability.

Starting Budget

Ahmed Ali Syed has initially invested 5 lack rupees along with

land and building under his ownership, and while Syed Mehdi

Uz Zaman Gillani, Tayyaub Khalid and Waqar Ahmad have alsoinvested 5 lack rupees each. So our initial investment is 20

lacks. 15 lacks will be used up in starting the business and will

be used in procurement of animals, machinery, initial staff,

brand name, office furniture, stationary and shop building.

While the remaining 5 lacks will be used as contingency

capital , for promotion and marketing purposes.

Continuity of businessContinuity exists within the business. The business will not

finish If

Any limited partner dies: his partnership rights will be

transferred to his legal heirs, or if agreed upon his

investments along with his claims in profit will be paid and

partnership rights will be bought from his family.

Any limited partner withdraws: his equity claims will be

settled and he will be released from the partnership

Any limited partner sells his equity claims: this must be

done by the consent of all the other partners and all the

partners must be asked to buy that claims before they can

be sold to any third party

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In case of unlimited partner: the business has no

continuity in case the unlimited partner dies or the he

wants to withdraw his claims due to some feud.

Capital requirement

Land is already under the ownership of the unlimited

partner and capital will be required to furnish and make it

up to the mark needed to be a pet shop.

Animal trainers, handlers and veterinarian will be hired

and capital will be required for job publication and hiring.

The machinery is to be transferred from Karachi or is to beimported as it is not available in Peshawar.

The animals are to be brought from different region and

maximum of 15 lacks rupees are required for their

procurement

Management control

The Furfect pet store will be management by a decentralizedboard of owners.

Syed Mohammad Hasnain Gillani (formerly a factory owner and

having more than 35 year experience in the market) will be the

president and chief executive officer while Ahmed Ali Syed will

be the head of human resource, Syed Ameer Uz Zaman Gillani

(formerly a factory owner and having three year of experience

at management) will be the chief operations officer, Tayyaub

Khalid will be chief marketing officer and Waqar Ahmad will be

chief finance officer.

Organization design

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Chief executive

officer

Chief operations

officer

Head of Human

resource

Chief marketing

officer

Chief finance

officer Animal

trainers

Sales

personAccountant Animal

handlers

Sales

manager

Consumer

consultants

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Marketing Plan

Marketing Research questionnaire responses

We conducted a marketing research to know the needs and

perceptions of the customers about the sales of Pets. This was

necessary as it gave us a primary look into the market and

whether any such business should be undertaken or not. A

solid 58% of our respondents showed favourable result, well

29% of the respondents were undecided and 13% of the our

respondents were against our idea.

Why to buy at the Furfect pet store?

Furfect provides the best available breeds of animals kept in

safe and clean environment. The animals sold at Furfect are

well trained. We at Furfect provide all precautionary guidelineto customers regarding their action near animal and also

provide animal handling guide and proper education. We

consider our customers are king and provide an environment

which they can relate to. We provide veterinarian services,

trimming and addition services for pets. A regular check-up

date is fixed to keep the animal in perfect health for our

customers. We also provide a 24 hour home delivery service

and plan to start an animal ambulance service in future.

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Definitely58%

May be29%

No13%

Respondent responces

Definitely

May be

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Porters Five Forces Model

Analysis of Competitors

There are a few competitors in our business and none of them

are widely known. Competition in a little stiff in the animal

clinic category as there are a few animal hospitals and namely

one or two animal shops. There is also a high profile bird

market in Kohati area which might prove a testing competitorfor us. There are two main competitors for us in the Peshawar

market.

A. The medical hospitals that provide veterinarian services

and animal medicines and vaccination. Animal hospital

and clinic (10-Jawad Plaza, Pajaggi Road BachaKhan

Chowk Peshawar, Pakistan).

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B. The other competitor is the bird market of Kohati area

which has a very strong hold on bird sales and bird related

accessories.

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Competitors Table

Details Competitor A Competitor B

Products &Services Animal clinic and

veterinarian service

Provides birds and

birds accessories to

about 90% of

Peshawar market

Pricing Strategy The prices are low

but the quality is

second to none.

They dont really

care about animalsand they are not

treated well by the

doctors.

High prices & good

quality but the

monopoly has

helped them dictate

their own prices withhigh profit margins

for too long

Promotion Strategy They dont really

promote themselves

and is the main

reason for lack of

public knowledge

about them

A usual pamphlet is

issued to promote

one entrants into

that market but

word of mouth is the

main promoter for

that market

Strengths They have specific

users and provide a

colt like experience

to them their

customers aresatisfied with them.

They deal in birds

that are commonly

liked and are bought

on daily basis

Weaknesses The lack of quality in

services and lack of

quality doctors is

their biggest

weakness

High price and a flair

of fraud to trap

innocent customers

has created some

bad repute for them

in their market

Analysis of Customers

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Our customer frequent for common animals but are rare forspecial animals. This mainly due to the price differencebetween them. The customer doesnt have much power in thismarket and business usually enjoy monopoly. The customers

are weak and dont have much say in setting up the prices.

Analysis of Suppliers

Our suppliers are the licensed importers and exporters of

animals having the full rights to sell all the breeds that are

bought by us. Our suppliers are usually the foreign exporters of

animals. We also remain in close contact with the local

exporters trying to buy fully licensed special breeds of animal

that can be sold to our customers.

Threat of New Entrants

This market is a undiscovered market of possibilities in

Peshawar and the threat of new entrants will be at its

maximum once a business is fully established in this market.

The new businesses will be opened as the market becomes

profitable and attractive.

Threat of Substitute Products

The substitute products though present have little fame among

the people nad pose no real threat to our products.

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Situation analysis

The companys situation analysis is based on the customer,

competitor, context, and segmentation and targeting. Furfect

pet store is going to start its operations for the first time. Basedon data gathered through marketing survey conducted using

questionnaires the ideology behind Furfect has gain mainly

positive feedback from the target customers.

Company

We are the first fully functional business of pets in Peshawar,

having a clear vision in mind. We are only providers of pets and

pet related services. We deal in variety of breeds and also

import on order. We also provide therapy treatment

mechanism for the blood pressure patient. And design products

for the blood pressure patient who are allergic form animals.

Customers

Our primary customers will be people who love pets

We will also focus on people who suffer from tensionand hyper tension

We will try to create customers from people who areundecided about pets and have a soft spot for them

Context

Political and legal context

Pakistan is suffering from political instability and which has

created import hurdles. The focus has mainly been onimproving political structure and thus legislations regarding

animals have been overlooked.

Economic environment

Economy is unstable and major inflation has led to higher

prices and costs. This instability has given an excuse to the

external investors who have taken out their investments a

have left a huge gap in market leaving the businessenvironment very fishy.

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Socio-cultural

The dominance of Islamic ideology regarding the infectivity ofdogs has created a major misconception about other animals

too and people are afraid to buy pets. Also the people who

have pets are considered to be dirty which leads to people

disliking pets.

Technological Environment

Though a little slow to adapt to technology at first, now the

Pakistani technological environment is growing very fast. Therequired technology will easily be available in metropolitan

cities and thus can be imported to Khyber Pakhtunkhuwa.

Target Market

We will target Peshawar cantonment and university area and

will increase to city and to whole Khyber Pakhtunkhuwa

province overtime.

Upper-Middle class and Upper class

Male and Female Age 14-60 (teenagers, youth and adults)

Market summary

Pets are a vacuum market with no companies to fill customers

needs. The market is there to be taken and we are taking the

first initiative. A certain kind of dissatisfaction exists among

tension and blood pressure patients regarding heavy

medication taken by them. Pets; as several researches

suggest; can be used as therapy treatment to reduce and

control tension and blood pressure constantly.

Market needs

1. Animals for security

2. Animals for companionship

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3. Animals as a hobby

4. Animals as a status symbol or some other unconscious

desire

5. Exotic animals

6. Animal replacement for treatment and therapy for blood

pressure patients

Market trends

Almost 86% of market has favourable view of animals and want

to buy animals that are bred in a clean, green and

decontaminated area. There is a superstitious that animals arenaajis (impure) which is not the case except for dogs. But

dogs can be kept as the guard or hunters.

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SWOT Analysis

Strengths

Extensive market knowledge

Availability of many kinds of animals, bird and fishes

Providing extensive services to customers

A one stop, pet all needs facilitating, shop.

Creative and innovative pets alternative products as a

mode of therapy

Access to foreign markets and legally imported pets

Weakness

No training in animal handling, just personal experience

Expensive imported animals

Lack of trend of pets

Initial investment relatively high

Expensive technology import

The fur alternative is created from a special sheep skin

called QARAQUL. and fur fabrics which are expensive and

limited

Opportunities Creation of awareness among people

Can extend market to more parts of Pakistan

Add many new animals to our product line

Create a market in pet accessories

Threats

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Animal smuggling

Political instability in the region

Increasing import duties

Lack of proper technology

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Marketing Mix

The 7 Ps of marketing

Product

Price

Perception

Placement

Promotion

People

Packaging

Product (marketing offer)

1. A wide variety of animals

2. A big collection of birds

3. Many exotic fishes

4. Synthetic clothing as fur replacement for therapy

5. Animal accessories

6. Veterinarian services

7. Trimming and cleaning services

Price1. Affordable for local pets with animals priced below Rs.

10000 (excluding rare breeds)

2. Expensive imported pets ranging within Rs. 15000-50000

(excluding very rare breeds)

3. Price division on the basis of different animal

4. The price varies for different breeds too

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(the price includes import duties and taxes)

Perception

We will place our products as higher class brand in the minds of

our customers and as a quality brand in the market, which

emphasizes on quality, cleanliness, health and affordability.

Placement

1. Our outlet will be in Peshawar university region which in

our perception is the perfect placed for our business to

flourish

2. We will extend our outlets to Saddar and city region in the

next three years

3. After 5 years we will open outlets in all major cities of

Khyber Pakhtunkhuwa

Promotion

Television Advertisement

Billboard

Pamphlets

The Rampage Co has printed catalogue & business

portfolios for the promotion of our brand and products.

People

Five animal trainers and managers

A veterinary surgeon and an accountant

two Sales handlers

three customer consultants and educators each

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Packaging

A clean aquarium for fishes

Cages of all size with new designs for birds

Small and large cushion filled basket s for the animals

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Marketing Strategies

The marketing will seek to develop interest and

awareness of its products to the customer.

Furfect pet store offers best, healthy and clean animals.

We will provide state of the art services free for first two

month of operations.

News paper advertisement and pamphlets will be floated.

Will buy air time on major radio station like fm-101 and

radio Buraq 104

An internet webpage will be created

By proper advertisement and publicity pet awareness and

demand will be created for the pets and products.

Financial Objective

The minimum revenue of Rs 700000 will be generated semi-

annually with our own profit a mere Rs 70000. We have let ourprofit margins low because we want to achieve a higher market

share and gain satisfied and loyal customer. Our financial

managers have calculated a market share of 76% in Peshawar

in the next year or so. Which is more than Three fourth of the

whole market.

Financials

These will give us a view of how our business will perform innear future. Furfect pet stores financial earnings will help us to

demonstrate the breakeven point, enable s to forecast sales

and expenses.

Break even analysis

Assumptions

Average per unit revenue = PKR 9000/-

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Average per unit variable cost = PKR 3600/-

Estimated semiannual fixed cost = PKR 300000/-

Break even = fixed cost / Revenue - variable cost

Break even = 300000/ 9000 3600

Break even = 55.56

Sales forecast

The sales forecast of Furfect pet store the revenue that will be

generated in the next two semi-annual accounting periods. The

pet store analyzes the sales according to different breeds fanimals that will be offered i.e. Local, Imported and Very

special breed.

Sales 2011(July- Dec) 2012(Jan - June)

Local PKR 650,000 PKR 490,870

Imported 1,455,000 2,100,000

Very special 1,750,000 1,820,000

Total sales 3,855,000 4,410,870

Cost of Goods sold

cost onacquisition andmaintenance

Apr11-Sep11 Oct11-Mar11

Local PKR 124,300 PKR 216,000

imported 562,794 520,788

Very special 1,260,000 1,508,500

Total cost ofsales

1,947,094 2,245,288

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Documents

furfact pet store