Business Plan

BUSINESS PLAN PROJECT

Submitted by:-Pranjal Yadav

CONTENTS

CO

NTEN

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Click icon to add pictureINTRODUCTIONMISSION AND VISIONGENERAL SPECIFICATIONSRESEARCH TECHNIQUESPRODUCT RANGEREASON TO CHOOSE THE PRODUCT RANGEFORM OF BUSINESS OWNERSHIPPLANNINGORGANIZING STAFFINGCONTROLLING

INTRODUCTIONThe pet industry in India has an estimated revenue earning potential of Rs. 350 crore . Out of this around 250 crore is contributed by pet foods and the remaining 100 crore comes from grooming and healthcare sector. The industry is growing rapidly in India” says Mr. O.P Singh, CEO of a pet food supplier company called Venky’s India.There are myriad options for business in the pet industry. The options just keep growing  day by day as people come up with new ideas and ways to shower love on their pets. Pets have always been a craze in US and UK. But this trend has started recently in India. According to a research conducted by Research and Consultancy Enterprise (RACE) of Institute of Management Technology (IMT), Ghaziabad there are about 2.2 million dogs in the Indian household with the population increasing by 26% every year

VISION

Our Vision is to reach the zenith of Indian pet industry by providing education and loving support to the customers so that they will have the knowledge to care for and enjoy their pets and by furnishing the pet facilities to maximize customer satisfaction.

MISSIONOUR MISSION IS TO:-•To offer a one stop shop for pet owners•To offer the customers a store that is well stocked with healthy and happy animals - plus everything they will need to keep them that way•To provide well-adjusted, socialized pets that will make a welcome addition to any family•To fulfil customer demands even on special order such as guinea pigs, rabbits, pet rats, and pet mice when needed. •To provide an extensive assortment of organic, natural and holistic foods for all types of pets.•To provide in our store a vast array of cages, bedding, toys, leashes, collars, grooming supplies, and many other accessories.•As an additional service, we added our boarding facility to accommodate the customers while away.•To offer you personalized service provided by the highly knowledgeable staff members who are always ready to answer customer’s questions and assist them in any way.

GENERAL SPECIFICATIONSBUSINESS LINE-Pet Store

INDUSTRY TO BE OPERATED IN-Pet industry

FORM OF BUSINESS OWNERSHIP- Partnership firm

RESOURCE BASE- Equitable contribution by each of the 5 partners (Rs.5 lakh each)

BRAND NAME-

LOGO-

FINS ,FEATHERS & FUR

RESEARCH TECHNIQUES

In order to understand the internal and external environment , the feasibility of our business and other issues in light of objectives to be achieved the following analysis were done:-I. SWOT ANALYSISII. PESTEL ANALYSISIII.MICHEAL POPRTER’S FIVE FORCES ANALYSIS

StrengthsBooming pet industry in IndiaBigger budget than competitorsOnline marketing.Wide Range of Services like pet grooming products , pet accessories etcPurchase price lesser than other shops30 day warranty / refund policiesPre-purchase veterinary checkupClean and professional pet houses/cages.Home delivery options.Personalized gift baskets.Personal trainerAccreditations and certification.

Weaknesses

No prior experience in running a business.Various Government regulations.Protests by various NGOs.A few variety of pets are high maintenance. Infectious diseases.Other expenses like vaccination etcLocation costs

Swot analysis

Opportunities

Established traffic and high number of repeat customers may enable increased sales through the addition of complimentary product linesIncreased use of the internet for shopping with the 18 to 35 age groupGrowing westernization has also led to an increasing number of consumers adopting pets .government’s reduction of the import duties on pet food (2007)We will be organizing various events like pet fairs and pet competitions for marketing purposes.New service of Pet Insurance

Threats

Not much of an online pet market in India Most pet owners continue to give their pets homemade food.Animal laws.Destructive mental illnesses like separation anxiety , depression etcSpecialty Services could be expensive and time consuming.

ECONOMICNo government

restriction in choosing the form of ownership

of businessThere are legislations

regarding taking services from licensed

breeders.Import of pet food is

also becoming cheaper.

Labour training laws will not hamper the functioning as we do not have much labour

base

POLITICALChances of shifting

to new product range are bright

We enjoy the benefit of recession-proof

industryThe maintenance

cost of pets is high. So this is might lead to reduced demand

Rising inflation rates might also affect the

sales of the pets

SOCIO-CULTURALPopulation structure

there is not much customer base in India but now it has started

evolving at a faster rateAs we are moving

towards westernisation ,so

people have started adopting pets.

Health and fitness factor may act as a threat

because of chances of spreading of various diseases is higher in case a pet stays at

home.Owning an expensive pet

is becoming a status-symbol

PESTELANALYSIS

TECHNOLOGICALAs the growth of

biotechnology will help our breeders in

developing new species.Government spending

large amount on various discoveries will be helpful

for us in many waysRate of obsolesce in our industry is very low as compared to any other

form of industryWe will be focusing on digital expansion by launching our own

website.

ECOLOGICALenvironmental

changes are leading to birth of new pet

diseases , so demand for pets is declining

due to increased cost of pet's medical care

biological developments in the industry are leading development of new

species. So this would help us to diversify in

future.

LEGALVarious acts need to be

complied with like:-the Animal Welfare Act

the Pet Animals Act, which requires the shop

to be licensedthe Welfare of Animals (Transport) Order - we

must comply with specific requirements if we

transport animals more than 65 kilometres or for

over eight hours for commercial purposes

MICHEAL PORTER’S FIVE FORCES ANALYSIS

BUYERS POWERBuyer’s will not have

much bargaining power as there are only few seller’s in the market

which give us a chance of better

bargaining .But there might be a threat of

less volume of sales or less demand. But at the

same time we might enjoy the benefit of

providing complete and accurate information a about pet care to the

les aware buyers. Threat of Price sensitivity also

prevails.

SUPPLIER’S POWERThere are a large no. of

suppliers of pet products that we

basically will deal in order to meet the

demand. So in order to avoid exploitation from

the suppliers we will give order to the

suppliers on the basis of demand from the consumer . threat of

substitution are not as high as competition is not so high. Also we

shall enjoy the benefit of forward integration

by providing the training, grooming and

breeding facilities

THREAT OF NEW ENTRANTS

As there only a few market players we can have a absolute cost

advantage as compare to competitors as we deal in variety of product range

& customisation in various

departments .Govt. policies are favourable.. We wouldn’t need a big

capital base as we would deal in market demand & we already have a capital

base of 25 lakh. Maintaining a Brand

identity will not be tough due to lack of competition.

DEGREE OF RIVALRYExit and entry barriers are

not so rigid so we can easily enter & exit both actual as well as an e-market .Fixed cost of

food, accessories, etc. will help us gain financial

rigidity in terms of cost analysis so that we can give special discount to our regular customers or on special occasions etc.

THREAT OF SUBSTITUTES

Switching cost is less as there is low investment. This makes Switching to new product range and market easier. Buyer’s

inclination to substitutes would be solved as we will customise the products in various ways and provide

services like online placement of order, home

delivery, pet groomers and trainers .

PRODUCT RANGE

PRODUCT RANGE

FOOD

CLOTHING

ACCESSORIESPET

GROOMING & TRAINING

DAY BOARDING

BREEDS OF PETS

Dogs• German Shepherd Dogs

• Great Danes• Pug• Labrador• Saint Bernard

Birds• Lovebirds• African Greys• Bare Eyed Cockatoo

• Meyers Parrot• Baby Military Macaw

Fishes• Goldfish• Betta Fish• Cat Fish• The Swordtail• The Guppy Fish

Cats• American Longhair

• American Shorthair

• Oriental Bicolour

• Ragdoll• Siberian

Guinea pigs• Short haired• Himalayan• Silkie or Sheltie• Rex• Teddy

Rabbits• Lion head• Pygmy• Miniature rabbit

• Silverfox• Swissfox

PET FOOD

DOG FOOD

MILK

BISCUITS

BONES AND CHEWS

CAT FOOD

MILK

MALT

GRASS

FISHES

GRANULES

WAFERS

PELLETS

RABBIT FOOD

DRY PAPAYABEANS

DRY MUSTARD GREENS

PARSLEY

BIRD FOOD

OATMEAL

DRY MUSTARD GREENS

PARSLEY

GUINEA PIGS FOOD

CELLERY

PARSLRY

BABY SWEET CORN

Accessories Aquariums

and tanks

Filters for aquariums

Grooming supplies

Brushes oils Collars/

harness Feeders Beds and

quilt Bowls Carriers and

crates Digestive aids Perches for

birds

ACCESSORIES

services

ClothingReadymadeCustomized-The tailors fulfil the individual requirements of the pet owners. The raw material for clothing Is the scrap of the cloth manufacturers. In this way they can utilise their wastes and we can reduce our raw material costs. Training and GroomingThe store has recruited 5 trainers and groomers to meet the required demands. The Animal trainers are patient and sensitive. They have experience with problem-solving and animal obedience. Only certified trainers and groomers are recruited. The trainers do the following jobs:-Get animals accustomed to human voice and contact;Condition animals to respond to commands;Give positive reinforcement to animals;Provide animals mental stimulation, physical exercise, and hands-on care;Oversee diet preparation;

Day BoardingA lot of customers complain that they have to cancel their vacation plans because of their pets. Well now they can pack their bags with peace of mind by leaving their pats at the Boarding and Day Care facility of our centre and their pets will experience the same love and attention that they get at home.The boarding facility is for both the pet’s safety and health. The boarding room is monitored 24 hours a day by surveillance camera, which captures night images as well.  All pets are housed in individual comfortable accommodations and receive first class professional attention from people who care for them throughout the day. Fur, feathers &fins feeds the pet high quality food and special water during their visit. The boarding room also has an air filter for the pets well being. Advance reservations for the pet have to be done.

REASON TO CHOOSE

THE PRODUCT RANGE

Unlimited Profit Potential Low Investment A recession-proof industryFreedom to Grow the business in a stable niche marketBenefits of both cash and credit businessExclusive protected territory

Form of Business Ownership-PARTNERSHIP

A partnership agreement was formed in writing. It was duly stamped and registered with the registrar of firms under ‘THE INDIAN PARTNERSHIP ACT’. The particulars of the deed are:-Name of the firm-FINS FEATHER AND FUR,Nature of the business carried out-Both goods and service provider (Pet store)-Name of the partners

PRANJAL YADAV PRATIK SAHA RASHI ARORA SAKSHI BHADAURIA SHANTNU SINGH

The amount of capital to be contributed by each partner-Rs.5 lakh each by the 5 partners

Loans and advances by the partners and interest payable -6% p.a.

The amount of drawings by each partner and rate of interest allowed on them-maximum Rs.50,000p.a. and 6% p.a.Duties and powers of each partner-

i. Finance department-Pranjal Yadavii. Purchase Department-Shantnu Singhiii. Operations and maintenance department- Sakshi

Bhadauriaiv. Marketing and promotion department- Pratik Sahav. Public relations and Information department- Rashi

Arora

All the above department heads are given powers and responsibilities in relation with the work assigned. Also each one of them will be accountable for the work done. Any other terms and conditions to run the business-All partners will work as active partnersThe profit/loss sharing ratio will be the same as capital contribution ratio i.e. equalAny surplus will be distributed among the partners only after transferring the required amount to the reserve.

Planning

CHOICE OF LOCATIONInstead of buying a permanent establishment for running the business we preferred to take the business premise on leasehold basis. COMMUNICATION- Since a major proportion of the business operated on order placement, such location was chosen that would not lead to high cost of transportation of products from the suppliers.MARKET CUSTOMERS AND POPULATION-After referring to secondary data, it was found out that the location chosen was very favourable because the pet lovers living nearby had to go to far off places for maintenance and grooming of the pets.COMPETITION- There is negligible competition in the nearby places.OTHER AFCTORS - Also the store was opened near a clinic of a vet and a dog park. This helps us attract customers. 

SHORT TERM

OBJECTIVES

MAXIMIZE SALES

IMPROVE QUALITY

REDUCE COSTS

MAXIMIZE CUSTOMER

SATISFACTION

SUBSEQUENT SHORT TERM STRATEGY

CUSTOMER SUPPORTIVE

SCHEMES

THOROUGH QUALITY CHECKS

BULK PURCHASES

QUICK SERVICE AND GRIEVANCE

REDRESSAL

LONG TERM OBJECTIVES

MARKET PENETRATION

PRODUCT DEVELOPMENT

MARKET DEVELOPMENT

OVERALL DIVERSIFICATION

SUBSEQUENT LONG TERM STRATEGY

VARIED USES OF SAME PRODUCT

INNOVATIVE IMPROVEMENTS

GEOGRAPHIC EXPANSION

MERGING WITH SIMILAR LINE

FIRM

PARTICULARS AMOUNT

Store Rent 75,000(monthly)Recruitment 2,00,000 Legal Requirement 50,000 Stock 3,00,000 (monthly)Food 1,50,000(monthly) Accessories 1,20,000(monthly) Clothing(order basis)(Reserve) 50,000 Maintenance Expenditure 3,00,000(monthly) Promotion and marketing 80,000 Public relations expenses 50,000 Contingency Reserve 3,50,000Investments 2,50,000Expansion and diversification Reserve 3,00,000Cash in Hand 2,25,000 TOTAL 25,00,000

CURRENT PROMTION STRATEGY

Word-of-Mouth- One of our marketing techniques Word-of-mouth marketing, encompasses a variety of subcategories, including buzz, blog, viral, grassroots, brand advocates, cause influencers and social media marketing, is of extreme importance to us . Sampling-Initially we started with no brand power in the market. So we had to rely on distributing as free samples of the add-on pet products and services and it has majorly contributed to our salesDiscounting-one of our strongest U.S.P. is that we offer all pet services and products at a price marginally lower than the prices prevailing in the industryAdvertising-Advertising through advertisement in posters, magazines, newspapers, pamphlets and brochures is done extensively. Even fliers at the grocery store or veterinary stores are effective.

Promotion on social networking sites- Our face book page and our official website www.fins,feathers&fur.petlovers.com are regularly updated with all important information. Other strategies include:-Host an event Partner with others Creative message placement Sell complementary products and services Branded Pet Foods-Set up a customer contact planMascots-

FINS, FEATHERS & FUR commitment to Natural, Holistic and Organic pet food is unparalleled in the pet specialty industry. We are passionate about natural and organic pet products

Our main suppliers include:Provimi Animal Nutrition India Private LimitedMajeed Agro Food Narayan Group  CLOTHING

We strive to offer the customers the best product possible at a reasonable price. If the clothing last longer, and can be worn with pride, value is gained. Our products are professionally designed by a top designer. The designs are in keeping with current fashions, and are constantly improved.

ACCESSORIESWe deal in a vat variety of accessories mentioned in the product range:-Our main suppliers include: Arnold Kennels-Established in 1987 they are a leading service provider of pet’s accessories. They also deal in pet clothing. Paws, the Pet suppliers-Supplying a range of pet accessories. Aman Overseas-A multi-pet and pet product supplier.   

A Code of Practice is made under the provisions of Section 59 of Division 4 of the Domestic (Feral and Nuisance) Animals Act 1994 (The Act).

Health it is the major concern took care by our organisation with respect to the pets kept at our shopAny sick or injured animal is isolated in an area away from public contact and from other animals until fully recovered.Fresh cool water is available to animals at all times. All adult animals are fed at least once per day.

HYGIENEThe shop is kept clean and hygienic at all times. All cages and pens holding animals are cleaned out daily and cats are provided with clean sanitary trays daily.Disinfection of pens and cages is done with hospital grade

CERTIFICATION AND PURCHASE All dogs and cats sold have a vaccination certificate signed by a veterinarian stating that the animal has been vaccinated in accordance with the label instructions of the manufacturer of the vaccine. The certificate indicates the next date for further vaccination and any obvious defects. No animal with a potentially life threatening defect apparent at the time is sold.

GUARANTEE

If an animal is not acceptable to a purchaser because of health or other reasons that are supported by a statement from a veterinarian, excluding accidents within seven days of purchase, we take the animal back and refund all monies or offer a replacement animal with the same guarantee.If an animal is returned within three days for any other reason, we refund 75% of the purchase price or offer a replacement animal with the same guarantee.

Informing the customers about the new arrivals of pet breeds and new products and services offered by the store.Helping the customer get their queries solved. E.g. Those relating to the health of the pet, food to be offered to the pet.Facilitating to the customers access to all services and products offered by the store.Handling customer grievances and complaints and ensuring timely redressal.

To arrange and conduct programs to maintain contact between organization representatives and the public. For example, organizing a free pet vaccination programme.Understanding the attitudes of community, consumer, employee, to establish and maintain cooperative relationships between them and representatives from print and broadcast journalism.    

To draft press releases and contact people in the media (like radio or television special reports, newspaper stories, and magazine articles) who might print or broadcast their material.

Handling organizational functions, such as media, community, consumer, industry, and governmental relations; political campaigns; interest-group representation; conflict mediation; and workers relations.

STAFFING

Firstly the staff requirement of the shop was analyzed

10 shop assistants

5 multi-pet trainers and groomers(for work on weekends)

2 doctors(for work on weekends)

2 Breeders

The 5 partners would do the job of heads of different departments

JOB TITLE SKILL SET METHOD NUMBER

PAYSCALE(per month)

ShopAssistant

No specific qualification. Graduates preferred.

LocalAdvertisement

10 RS. 5,000

Multi pet trainers & groomers

Proffesional degree. Experienced preferred.

Media & local advertisement

5 Rs. 12,000

Doctors A qualifying degree in medical care of pets or any other relevant degree.

Employment exchange & media advertising

2 Rs. 20,000

Breeders Experienced applicants in the field with the required knowledge of breeding

Employment exchange & web publishing

2 Rs. 15,000

controlling

We keep contact with various veterinarians, food scientists, technicians and PhD nutritionists and hire their services to maintain the quality of our services.Only ingredient suppliers whose facilities meet stringent raw material quality standards are approved by FINS, FEATHERS & FUR.Every location for every ingredient supplier is separately qualified to ensure consistency in ingredient quality &manufacturing under sanitory conditionThe work environment quality and product quality are continuously monitored and electronically documented through on-line quality checks throughout the trading process.We conduct annual Quality Systems checkups for all facilities and products provided to ensure that we meet the high standards that the pets deserve.Strict action is taken against any lapse in quality. We also ensure that such lapse does not take place in future.

PRODUCT LEVEL 1 LEVEL 2 LEVEL 3 LEVEL 4 LEVEL 5FINANCE Allocation of

fundsMonthly and annual checks

Warning against misuse

Strict action in case of major shortcoming

Job dismissal

PURCHASE Allotment of resources

Quality checks

Warning if poor quality material supplied

Return of defected material

End of contract with the supplier

MARKETING Publicise through marketing tools

Examine its influence

Continue if a favourable impact

Apology in case of unfavourable effect

Withdrawal of unsuccessful techniques

MAINTENANCE Analysis of all product lines

Matching with the quality standards

Regular examination

Altering if not acceptable

Improving if acceptable

PUBLIC RELATIONS Analysing customer responses

Keeping track of media records

Regular examination

Giving further incentives if customer satisfied

Compensating for any loss caused to the customer

HOPING TO SUCEED IN FUTURE BY ASSURING OUR CUSTOMERS OF

OUR BEST SERVICES AND COOPERATION.

THANK YOU.