Final Business Plan

Presentation On Business Plan-Soap Industry

Presentation By Group No. 1

Meenal BistChander Goyal 30Rupesh Ingale 33Ashwini Kamble 40Ashpak 47

Business Planning

Business Planning encompasses all the goals, strategies and actions that you envision taking to ensure your business’s survival and growth.

It is an blueprint of future business activity.

• Content of Business plan– background information about the organization or

team attempting to reach those goals.– Operational and Manufacturing plan– Marketing plan– Financial plan– Environment scanning

BUSINESS PLAN C-square soap Ptv. Ltd.

Our mission is to create value for customers and shareholders by continually improving health and reducing preventable illnesses through the use of our soap.

Mission statement

Our mission is to create value for customers and shareholders by continually improving health and reducing preventable illnesses through the use of our soap.

Vision Statement

• Product = Soap (Body soap)• Manufacturing Plant Location=Aurangabad • Office at Thane = Thane

C-square i-Soap Ptv. Ltd.

Overview


Objectives

PROFITABILITY: To manage the assets and human resources, in the most effective and efficient manner, to ensure reasonable return on investment.

GROWTH : To achieve reasonable and consistent growth.

DEVELOPMENT: to improve Clean Me manufacturing.

ORGANIZATIONAL ENVIRONMENT : To develop and maintain an organizational environment and also to ensure a fair deal to the employees with humane approach.

BUSINESS DEVELOPMENT: To generate adequate profitability by utilizing the existing resources to the maximum extent.

OBLIGATION TO SOCIETY: To conduct business in the most ethical manner, and with legal standards, in order to generate a good social environment.


Target Market

A) Urban Market • Product= I-clean = Urban

– People are educated, and like hygienic products• And in both market we can use the various schemes for enhancing the sale

Of the product like…. – buy 2 get 1 free

B)Rural Market• Product = I-Faire = Rural

– Women like fairness product. It is low price and shining packaging product.

• And for rural market we can use these…– holiday trip on lucky coupon – collect the wrapper or tubes and get complementary gift or additional

unit of product.

Market Positioning

• In Maharashtra humidity level is so high and because of that peoples suffer from lots of skin problems like pimples, oily skin and for all such kind of problems there is only one solution clean & clear.

• We can provide some data in our programs and Ingredients of product which shows how our product is different from others like…… – Sodium Lauroyl– Stearic Acid– Sodium Tallowate– Water– Sodium Chloride– Titanium Dioxide

Marketing Plan • Product:- I-Faire = Rural, I-clean = Urban

• Place:- According to geographical area

• Price:- Penetration pricing

• Promotion:- A) AdvertisingBy print media By television By radio shows

B) Awareness About productBy sponsoring the various shows By free samplesTaking responses from public

C) Brand endorsementD)Programs - C-Square Weak

Operational Plan

• LOCATIONAL ANALYSIS : Location in developing city like Aurangabad.

(a) Demographic Analysis (b) (b) Trade Area Analysis (c) (c) Competitive Analysis

SELECTION CRITERIAa) Natural or climatic conditions.b) Availability and nearness to the sources of raw material.c) Transport costsd) Access to markete) Availability of Infrastructural facilitiesf) Availability of skilled and non-skilled labor and technically

qualified and trained managers.g) Banking and financial institutions are located nearby.h) Locations with linksI) Strategic considerations of safety and security should be

given due importance.


• Infrastructure needed and available we needTypes of hard infrastructure

– 3.1 Transportation infrastructure– 3.2 Energy infrastructure– 3.3 Water management infrastructure– 3.4 Communications infrastructure– 3.5 Solid waste management– 3.6 Earth monitoring and measurement networks

Types of soft infrastructure – 4.1 Governance infrastructure– 4.2 Economic infrastructure– 4.3 Social infrastructure– 4.4 Cultural, sports and recreational infrastructure• Insurance planning to take

Operational Plan BUSINESS PLAN C-square soap Ptv. Ltd.

Manufacturing

• The Manufacturing Process Step 2 - Glycerin removal

Step 3 - Soap purification

Step 4 - Finishing


Manufacturing

Equipment & Machinery needed

1. Saponification (vessels )pan2. Vacuumed dryer3. dryer4. Soap chip5. Automated packaging

machine

Quality Control plans 6. Quality of row material7. Efficiency of Saponification 8. Efficiency of vacuume dryer9. Water softener (zeolite)

Ingredient1. Sodium tripolyphsophate

(STP)2. Sodium sulphate3. Soap noodles4. Zeolite5. Sodium carboxymethyl

cellulose6. Flavor7. Color


HR PlansManpower Planning :

150 blue collar employee and 25 white collar employeeOrganization Structure :we will follow flat structure of org.Departmentation :purchase, sales, r&d operations hr Recruitment policies: - for top level mgmt Press

Advertisements-for middle level mgmt Placement Agencies, Employment Exchanges, Educational Institutes-for lower level Labour Contractors.

Training & Development: 1.on-job Training 2.off job Training

Appraisal System :Management by objectives360-degree appraisal Weighted check list method


Financial Plan

Projected Balance Sheet

LiabilityAmt in

Rupees Asset Amt in

RupeesOwned Capital 25,00,000 Machine 25,00,000Borrowed Capital 30,00,000 Plant 15,00,000 Furniture 10,00,000Bank OD 6,50,000 Cash in hand/ Bank 10,00,000 Stock 1,50,000 61,50,000 61,50,000

Sources of Funds (Long & Short-term)Particular AmtOwned Fund 25,00,000Borrowed Fund Loan from Bank 20,00,000 Loan from Friends/Relatives 10,00,000

Sources Of

Fund

Projected

Balance Sheet


Projected Profit & Loss a/c

For the Year End 1st Year 2nd Year

Particular Amt in Rupees Amt in Rupees

Sales 30,00,000 30,00,000

Cogs 8,00,000 7,00,000

OPP 22,00,000 23,00,000

Operating Expenceses 4,00,000 5,00,000

EBITDA 18,00,000 18,00,000

Depreciation 10% on Machine 4,50,000 4,50,000

EBIT 13,50,000 13,50,000

Interest 10% 3,00,000 3,00,000

PBT 20,50,000 20,50,000

Tax 50% 10,25,000 10,25,000

PAT 10,25,000 10,25,000

ADD Depreciation Value 4,50,000 4,50,000

CFAT 15,75,000 15,75,000

Projected P&L a/cBUSINESS PLAN C-square soap Ptv. Ltd.

Fixed cost & Variable cost

Salary 1,50,000 5,00,000Telephone charges 10,000 10,000Electricity charges 20,000 12000Transport & Distribution 1,05,000Advertisement 1,00,000Conveyance 80,000Postage & Stationery 10,000 10,000Preliminary expenses 90,000Interest on Bank@10% 35,00,000 3,00,000

TOTAL 36,90,000 12,07,000

PARTICULARS FIXED COST VARIABLE COST


BREAK EVEN ANALYSIS

BREAK EVEN ANALYSIS (Rs.) = Total fixed cost

.1 – total variable cost

Sales

BEA (Rs.) = 36,90,000 1-12,07,000 30,00,000

= 36,90,000 1-0.40

= 927200 0.60 = Rs. 61,55,000

Liquidity Ratio

Current Ratio:= Current Assets

Current Liabilities = 11,50,000

6,50,000= 1.77

Debt Equity Ratio:= Debt

Equity = 30,00,000

25,00,000 = 1.2


SUPPLIERS POWER-Supplier Concentration -Importance of volume to supplier-Differentiation of inputs-Impact of inputs on cost or differentiation-Switching cost of firms in the industry-Presence of substitute inputs -Threat of forward integration-Cost relating to total purchases in industry

BUYER POWER-Bargaining leverage-Buyer volume-Buyer information-Brand identity-Threat of backward integration-Product differentiation-Buyers concentration vs industry-Substitute available-Buyers incentives

THREAT OF SUBSTITUDES-Swathing cost-Buyer inclination to substitute-Relative price performance of substitutes

BARRIERS TO ENTRY-Absolute cost advantages-Proprietary learning curve-Access to inputs-Govt. policy-Economies of scale-Capital requirements-Brand identity-Switching costs-Access to distribution-Expected retaliation-Proprietary products

DEGREE OF RIVERYExit barriersIndustry concentration ratioFixed cost/ Value addedIndustry growthIntermittent overcapacityProduct differencesSwitching costsBrand identityDiversity of rivalsCorporate stakes

PORTERS 5

FORCE MODEL

BUSINESS PLANC-square soap Ptv. Ltd.

PEST AnalysisPolitical Factors

Economic Factors

-liberalization of economy - Incentives help encourage players to open their shops in these states

- high cost of imports due to high import duties

- cost very high in India as compared to other countries like Indonesia. E.g. 100 gms of soap in Indonesia costs rs.4.25 whereas in India it costs rs.10 approximately.

Social factors

Technolo-gical

Factors

Premium soaps segment

-rising education and disposable income levels- need for hygiene and personal / skin care

Though capital intensive is not very technology intensive

(SCM) Supply Chain Management and (E-CRM) Electronic Customer Relationship Management


Soap penetration –penetration of 95% in the

urban region while the rural region contributes to 85% penetration

SWOT ANALYSISStrengths

The duty structure-

excise duty is at the rate of 16%sales tax 8 to 20 % in statesthe southern states import duty is

as high as 35%

Weakness

India can concentrate on exports of specialty soaps like ayurvedic, herbal and special categories like fairness soaps.

Opportunity

Industry Growth -soap Industry is growing

at a minimal rate of 3 %

Threats


MARKET FOLLOWER STRATEGIES

1. Counterfeiter:2. Cloner:3. Imitator:4. Adapter:


Existing Product New

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Ansoff Matrix

MARKET PENETRATION

MARKET EXTENSION

PRODUCT DEVELOPMENT

DIVERSIFICATION

• Market penitration– Increase market share– Increase Product use

• Increase the frequency use• Increase the quantity use• Find new applicant for current users


C-square Soap Ptv. Ltd.

C-square soap Ptv. Ltd.BUSINESS PLAN

Thank you

IT’S AN BEGINNING…………….

Final Business Plan

Documents

square soap

soap ptv

business plan

operational

brand identity

amp

cost

high