Report . . .of introduction to business

8/9/2019 Report . . .of introduction to business

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UNIVERSITY OF CENTRAL PUNJAB

FAULTY OF MANAGEMENT

Project Report

SUBMITTED TO: PROF. Agha Mehmood Ali

PRESENTED BY: Group No. 5

MEMBERS:REG #

Muhammad Ahmed Khan L1S09BBAM0006Omar Javid L1S09BBAM0134

Muhammad Umar Khan L1S09BBAM2018

Muhammad Azmatullah L1S09BBAM2027

Umar Farooq L1S09BBAM2038

Naseebullah Khan L1S09BBAM2017

SECTION: A


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TITLE PAGE

ACKNOWLEDGEMENT

EXECUTIVE SUMMARY

INTRODUCTION ( GROUP IDEA )

BUSINESS MISSION

MISSION STATEMENT

GOALS AND OBJECTIVES

MANAGERIAL HIERARCHY

OPERATIONS OF THE BUSINESS

CONSUMER BEHAVIOUR

BENEFITS FOR THE SOCIETY

NEW PRODUCT PLANNING &

DEVELOPING

PRODUCT LIFE CYCLE

SWOT ANALYSIS

MARKETING PLANNING ( PRICING,

PLACEMENT, PROMOTION )

FINANCIAL PLAN

ACHIEVEMENTS


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From the bottom of our heart we are thankful to our

Prof.Agha Mehmood Ali Khan who taught us really

very well and guided us for this project as well as

future managers. One thing more that Prof. Agha

gave us the opportuinty to prove ourselves as a

market leader.


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We are a company known as NEW ERA SANITORY

MANUFACTURERS (N.E.S.M) doing a SANITARY business.

Our factory is situated at KASUR Road. There we are having a

Small Manufacturing Plant with a Melting Chamber imported from

CHINA. We are also having a warehouse for our stock placement.

Our business is a partnership business. The chances of growth are

extremely high. We are bringing new and innovative sanitary taps

and showers which are reliable, affordable, stylish and also having

long life. Our thinking is to completely satisfy our consumer,increase market share and in future lead the sanitary market.


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INTRODUCTION:-

Group:

There are 6 members in our group, naming M.Ahmed Khan Omar

Javid, M.Umar Khan, M.Azmat-ullah, Umar Farooq, Naseeb-ullah

Khan.

Idea:-

Our idea is to launch new and tremendous sanitary features

in a unique manner.


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We are producing sanitary items TAPS and SHOWERS that are

stylish, reliable and affordable price.

MISSION STATEMENT:-

We are providing good quality sanitary features for middleand upper middle class societies with reasonable price and innovative

designs.

Business Mission:

Our business mission is to introduce better and reliable sanitary items and

earn customers confidence, in order to expand our business. Our main

target market is the middle class and the upper middle class families.


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Goals & Objectives:

Our goal is to produce affordable price sanitary features and gain customers

confidence in less time by providing best service and also best quality taps and

showers.

Our business is not just to expand it and maximization of profit, but our 1 st

priority is to attain trust and satisfaction of our target market.

MANAGERIAL HIERARCHY:

There are 6 people working in this project, who are working at the following

positions:

Top Line Managers:

Muhammad Ahmed Khan as CEO

Umar Khan as Marketing and Sales Director.

Umar Farooq as HR Director

Middle Managers:

Azmat-ullah as Marketing Manager

Naseeb-ullah khan as Sales Manager

Omar Javid as Production Manager

First-Line Managers:To be

hired in future as per the need and time.


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COMPANYS SETUP:

The plant will be set at KASUR ROAD including major machinery as:

MELTING CHAMBER

MANUFACTURING PLANT

Raw material collector

Shaping chamber

Grinding chamber

Polishing plant

Spraying chamber

Besides our factory we dont have any outlet but we will distribute our

products ( taps & showers ) on different wholesale shops located at different

areas.

MELTING CHAMBER:


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MANUFACTURING PLANT:

RAW MATERIAL COLLECTOR:


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SHAPING CHAMBER:


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GRINDING CHAMBER:

POLISHING CHAMBER:


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SPRAYING CHAMBERS:

Consumer Behaviour:

Good quality SANITARY FEATURES are often

costly and are even not affordable for the middle class people. As our

product is moderate in price and high in quality, people would like to buy

it easily and rapidly.


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MARKET NEEDS:-

Our company will be providing the market with a

RELIABLE quality of taps & showers for the city of Lahore. We seek

to fulfill the following benefits that are important to the customers:-

CUSTOMER SERVICE:

We are providing our customers reliable, stylish,

affordable and innovative sanitary features.

CONVENIENCE:

The sanitary features will be transported to the site according

to the customer needs which will provide a lot of convenience to the

customers.


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MARKET & PRODUCTS:-

The company will target the local market initially

and will manufacture taps and showers. The showers and taps

will also be made on order with specific specifications and for

various tenders. Our target customers are the people related to

the construction industry. They are the people who construct

houses, appartments, and any other buildings.

Product Life Cycle:-

This is the introductory stage of our company that is why we are

only dealing with the wholesalers. In future INSHALLAH when the

demand of our product will increase we will open our own outlets.


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Strength:

The strengths we are having while launching a new business is as

following:

i. With a reasonable price the company will be able to penetrate easily

in the market.

ii. New design will be playing an important role among the consumers.

Weaknesses:Following are the weaknesses we may face or which are expected in

launching this business:

i. Numbers of competitors in the market are in a large amount.

ii. Distribution of the product in the market is not so easy as the

company is at its introductory stage.

Opportunities & Threats:

(i) The product can be launched in the future with more designs

latter on.

(ii) One of the main threat is that company is producing a simple

segment and there is a large number of competitors of this

product.


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Marketing mix consists of four things which are also

known as four Ps. these four Ps are:-

Price

Placement

Product

Promotion

PRICE :

The price per unit produced is taken to be Rs. 80/ Kg. This

price is a collective price of the P.V.C pipes used by middle and the

upper middle class people, as it is a bit expensive than the ordinary ones

because of its high quality.

PLACEMENT :

We will place our product at different wholesale shops of different

areas. We will also place our product at different sanitary shops to make sure

that our product is easily available everywhere in the market Lahore.

(DHA, BIDDEN ROAD, ICHRA MARKET, MULTAN ROAD and

GUJRANWALA GT ROAD).

PRODUCT

Our product is much higher in quality. It can also be used

in the construction of huge constructing projects, for sanitary.

PROMOTION


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For the promotion of our sanitary features firstly we will

have to identify the market and then through market research will

have to divide the market into different segments. Later, we will

have to target the major customers in each segment and will have

to get their orders and we will have to position our features well in

market and customers mind, so they place their order for our

products.


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The first step in the marketing plan is the definition of the purpose or objective

of the marketing research around which the whole plan is focused. Information

for developing the marketing plan may necessitate conducting some marketing

research. Marketing research involves the gathering of data in order to make an

effective marketing plan one focused around objectives set. The groundwork of

the plan is laid through the objectives of the research.

OBJECTIVES OF THE MARKETING PLAN:-

Determination of the target market

How much would potential customers like to pay?

Why would customers prefer to use our product instead of others?

The general behavior of the target market and their income groups?

INFORMATION GATHERING:-

The tool that we have used for gathering information

includes a questionnaire and personal interviews. The people are not to keen on

answering questions that required thinking and a little effort on their part. The

questionnaire which we used to fulfill our research objectives is as follows:-


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ADVERTISING STRETAGY:

Our strategy for the advertisement of our sanitary features is

that we will go on a mass scale print media advertising which will

include billboards, newspaper ads, handouts and other things related to

the print media field.

SELLING STRETAGY:

Sales are the heart of this business. The sales & marketing

manager will be contacting various builders and housing society and schemes

owners to look for contracts. He will also go for government tenders. While the

salesman will approach different shopkeepers for orders and they will find the

under construction houses and will look for orders.

PRICING STRATEGY:-

We will price our products moderate i.e. we will

have economic profit at the beginning. Once we have settled

into the market we will change our pricing strategy accordingly.


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MARKET & COMPETITIVE ANALYSIS:-

There exists a market already for this product and thecustomers are well aware of the type and quality of product they are

buying and some giants are present already in the market who are well

set in their positions.

ANALYSIS OF COMPETITORS:-

There are several competitors in the market that have a

strong position. Some of them are as follows:-

SONIX SANITARY

MASTER SANITARY

SUPER ASIA SANITARY


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The production process of taps & showers is as follows:

First of all we have to collect the raw material and than that material will go

through the purifying chamber. After clearing all the impurities the substance

will be transferred to the melting chamber. When the ingredients will be melted

than in next step it will be placed in the shaping chamber for the formation of

designs. After that the product will be sent to the grinding chamber. After that

the product will be moved in the spraying chamber for coloring in various

colors according to the demand of the market . Than in the last step the productwill move into the final process i-e in the polishing chamber .

RAW MATERIAL:

Brass

P.v.c

Silver

Steel

Different colors of ( taps & showers ) as per

need of customer.

P.V.C plastic Rs. 1850/ bag

Brass Rs. 55000/ton

Steel Rs. 75000/ton

Silver Rs. 1,75,000/kg


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BEGINNING OF OUR BUSINESS WILL BE FROM RS/ 1,00,00,000.

IN THE ABOVE CHART ALL OF OUR EXPENSES ARE

MENTIONED OUT OF WHICH IN THE END RS/ 4,67,0000 ARE IN

HAND.

OUT OF RS/ 46,70,000 AMOUNT IN HAND WE WILL DEPOSIT

RS/ 6,70,000 IN BANK FOR RETAINED EARNINGS. WE WILL

SIGN A 5 YEARS CONTRACT WITH A WHOLESALER THAT WE

WILL ONLY PURCHASE THE RAW MATERIAL FROM HIM FOR

RS/60,00,000. WE ARE HANDING RS/40,00,000 CASH AND ARE

PURCHASING RAW MATERIAL OF RS/20,00,000 ON CREDIT.

Documents

Report . . .of introduction to business