esbd dummy project.ppt

8/10/2019 esbd dummy project.ppt

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PROJECT REPORT ON COSMETIC

NAME OF THE ORGANISATION

GENTLE TOUCH CREATIONS

We care for you


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OWNERS

MANISHA PANTH

HIMANSHU

Proposed headquarter- Delhi


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i. COVER SHEET

Cover sheet is like the cover page of the

book. It mentions the name of the project,

address of the headquarter (if any) and

name and address of the promoters.


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ii. TABLE OF CONTENTS

EXECUTIVE SUMMARY

THE BUSINESS

(a) The objective (b) Brief history

(c) Form of ownership

(d) Name, Qualification of the owners

(e) Proposed Headquarters


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Funding requirements

(a) Debt

(b) Equity

The market (a) Description of product

(b) Comparative analysis

(c) Licensing agreement

The plan


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(a) marketing plan

(b) operational plan

(c) organizational plan

(d) financial plan The critical risk

The exit strategy

The appendix


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III.EXECUTIVE SUMMARY

Gentle Touch Creations is a start-up business

specializing in hand-made herbal products.These products include herbal therapy packs,

soaps, Saint, oil, eye packs, salves,

moisturizers, herbal bath bags, and bath powder.

All Gentle Touch Creations are made from herbs

that are either garden grown or gathered in local

fields or wooded areas when they are at their

peak of maturity and the concentration of activeingredients is highest.


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Herbal products have grown in

popularity with consumers over the

past ten years. Herbal productsindustry exceeded 4.3 billion dollar

in sales last year.

Where once a customer would haveto go to a specialty shop to purchase

herbal products, now those same

product are available at the local

supermarket.


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IV. THE BUSINESS

Objective :Working for gaining 100%

customer satisfaction Form of ownership: Partnership firm

Name, qualification of the owners:

Owner 1:Manisha Panth

Educational qualification: MBA

Owner 2:Himanshu Educational qualification: MBA


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V. THE FUNDING REQUIREMENTS

Total amount required for theinvestment is Rs. 10 lakh (approx).

Debt: The debts has been borrowed from

relatives and loans from banks.6 lakhwould be taken from bank at the rate of

interest for 9%p.a.

Equity:ownership fund (4 lakh would beinvested through us).


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VI. THE PRODUCTProducts: Theproduct line of Gentle Touch Creations is as

follows:

Herbal Therapy Packs for back and neck pain and relief of

muscle aches, filled with wheat berries and flax seed and 10

herbs.

Saint, oil for use as an anti-inflammatory or for burns, in a roll-

on applicator.

Eye packs in eye-pleasing patterns that help relieve sinus

discomfort and eyestrain.

Moisturizerfor face and hands with various scented oils. Soapscreated with such herbs as powdered balsam and rose

petals marbleized throughout each cake, gently scented.

Herbal bath bags

Bath powder made from arrowroot, cornstarch, rose petals andother herbs.


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VII. THE PLANMARKETING PLAN :

Develop ongoing relationships with cosmeticswholesalers and retailers throughout the India.

Maintain a high standard of quality and service

Offer discount coupons for the promotion ofcompany

Create the website for connectivity of more usersand for more awareness

Regularly send free samples to potential clients sothat they can experience the quality of productsfirst hand


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Market summary:. Herbal products have grown in popularity with

consumers over the past ten years. As the herbal market has grown into a

multi-billion dollar industry, so has the opportunity for small firms and

farms to supply product to larger herbal companies that then repackage and

market the product under their own brand.

Market demography: Potential customers can be divided into following

broad categories:

School girls

College girls

Working ladies

Housewives' Market research:there are lot of competitors already in the market but we

will differentiate us through the means of providing discount offers and by

good customer loyalty base.


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MARKETING MIX STRATEGY

MARKETING OBJECTIVE:1. Build brand image

2. Diversification.

3. Develop e-commerce functionality.

MARKET SEGMENTATION:1. Professional women

2. School and college girls

3. Household ladies

MARKET POSITIONING:

1. Good relationship with customer

2. Customer delightment

3. Good quality product

4. Affordable price


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PRODUCT MIX STRATEGY

Gentle Touch Creations will focus first on building a client base withherbal health product companies. i.e. herbal therapy packs, soaps, Saint,oil, eye packs, salves, moisturizers, herbal bath bags and bath powder.

PROMOTION MIX STRATEGY

Distributed in the neighborhood

Friends

Relatives

Pamphlets

Face book

Internet websitesPRICING MIX STRATEGY

Good quality and less priceDISTRIBUTION MIX STRATEGY

Single store


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SWOT analysis of the market: Under this we

basically analyze about the strength, weakness,opportunities and threats. STRENGTH

1. Quality

2. Brand name

3. High quality manpower resources4. Vast range of products and service

5. Global technology capability

6. Low price

7. The organization has strong ethical values and ethical mission statement.

WEAKNESS1. Too many brands

2. Need time to establish own brand name

3. High service cost

4. Use or hard chemical


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OPPORTUNITY

1.Upgrading customers through innovation to new level ofquality and performance.

2.Building brand image.

3.Cosmetic store should be designed in such a way to attract

customers.

4. More could be done with the family branding selling point.

THREATS

1. Competition from substitute products.2. Loyal customers would prefer their old brand.

3.Price competition from local and multinational players.


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(B) OPERATIONAL PLAN

(1) Plant location: Gentle Touch Creations is located

in a 2,000 square foot manufacturing space in

the model town.

(2) Plant layout: Design of the store

The interior dimensions of space is matter i.e. floor

design, wall colors, using of mirrors, lighting, decoration

of the space, outer look of store, attracting show pieces,

placing of the good in an ordered way, big gifts at the last

side of the store and small items should be placed in thestarting, the entering point of the store should be well

spaced for the entrance of the customers at the store.


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(3) Inventory management:

The record of each product with its price list, brand name,

quantity will be mentioned in the computer so that the proper

records of the items can be maintained.

It will help in the placement of the order to the supplier also.


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(C) ORGANIZATIONAL PLAN

Organizational chart


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Details about the board of director:

General Manager :Manisha panth

Operational Manager: Ravi

Marketing Manager :Vaibhav

Finance Manager :Himanshu

Manpower planning:

2 more people are required for handling theoperational work in the store.


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Legal aspects of labor

Anyone employing staff must comply with employment

legislation. Major pieces of legislation which you must

be aware of include:

The National Minimum Wage Act

The Working Time Regulations

The Employment Rights Act

The Transfer of Undertakings Regulations (if you takeover an existing business you must observe the existing

staff's terms and conditions of employment)

Health and safety


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(D) FINANCIAL PLAN FOR TWO-

FIVE YEARS

FinancialPlan:To get the business up and running, wewill need to obtain financing.

The tables show annual figures. Break-even Analysis.

The monthly break-even point is approximately Rs

10,20,000.


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Projected Profit and Loss.

The following table and charts highlight the projected profit and loss forthree years.


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Pro Forma Profit and Loss

Year 1 Year 2 Year 3

Sales Rs.584,000 Rs.642,400 Rs.706,640

Direct Cost of Sales Rs.204,400 Rs.224,840 Rs.247,324

Other Rs.0 Rs.0 Rs.0

Total Cost of Sales Rs.204,400 Rs.224,840 Rs.247,324Gross Margin Rs.379,600 Rs.417,560 Rs.459,316

Gross Margin % 65.00% 65.00% 65.00%

Expenses

Payroll Rs.124,600 Rs.143,800 Rs.155,144

Sales and Marketing and Other Expenses Rs.25,800 Rs.27,600 Rs.31,000

Depreciation Rs.5,400 Rs.5,500 Rs.5,500

Rent Rs.48,400 Rs.52,800 Rs.52,800

Rent Rs.6,000 Rs.6,000 Rs.6,000

Maintenance Rs.5,840 Rs.6,424 Rs.7,066

Utilities/Phone Rs.9,000 Rs.9,500 Rs.10,000

Payroll Taxes Rs.18,690 Rs.21,570 Rs.23,272

Other Rs.0 Rs.0 Rs.0

Total Operating Expenses Rs.243,730 Rs.273,194 Rs.290,782

Profit Before Interest and Taxes Rs.135,870 Rs.144,366 Rs.168,534

EBITDA Rs.141,270 Rs.149,866 Rs.174,034

Interest Expense Rs.2,821 Rs.2,326 Rs.1,618

Taxes Incurred Rs.33,740 Rs.35,510 Rs.42,424

Net Profit Rs.99,308 Rs.106,530 Rs.124,491

Net Profit/Sales 17.00% 16.58% 17.62%


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Pro Forma Balance Sheet


Assets

Current Assets

Cash Rs.195,358 Rs.296,358 Rs.417,648

Inventory Rs.21,175 Rs.23,293 Rs.25,622

Other Current Assets Rs.0 Rs.0 Rs.0

Total Current Assets Rs.216,533 Rs.319,651 Rs.443,270

Long-term Assets

Long-term Assets Rs.59,170 Rs.61,170 Rs.63,170

Accumulated Depreciation Rs.5,400 Rs.10,900 Rs.16,400

Total Long-term Assets Rs.53,770 Rs.50,270 Rs.46,770

Total Assets Rs.270,303 Rs.369,921 Rs.490,040

Liabilities and Capital Year 1 Year 2 Year 3

Current Liabilities

Accounts Payable Rs.31,974 Rs.31,947 Rs.34,836

Current Borrowing Rs.6,700 Rs.3,400 Rs.100

Other Current Liabilities Rs.0 Rs.0 Rs.0

Subtotal Current Liabilities Rs.38,674 Rs.35,347 Rs.34,936

Long-term Liabilities Rs.20,000 Rs.16,415 Rs.12,454

Total Liabilities Rs.58,674 Rs.51,762 Rs.47,390

Paid-in Capital Rs.140,000 Rs.140,000 Rs.140,000

Retained Earnings (Rs.27,680) Rs.71,628 Rs.178,159

Earnings Rs.99,308 Rs.106,530 Rs.124,491

Total Capital Rs.211,628 Rs.318,159 Rs.442,650

Total Liabilities and Capital Rs.270,303 Rs.369,921 Rs.490,040

Net Worth Rs.211,628 Rs.318,159 Rs.442,650


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Pro Forma Cash Flow


Cash Received

Cash from Operations

Cash Sales $70,500 $85,000 $105,000

Cash from Receivables $161,300 $244,675 $300,759

Subtotal Cash from Operations $231,800 $329,675 $405,759

Additional Cash Received

Sales Tax, VAT, HST/GST Received $0 $0 $0

New Current Borrowing $12,000 $0 $0

New Other Liabilities (interest-free) $0 $0 $0

New Long-term Liabilities $0 $0 $0

Sales of Other Current Assets $0 $0 $0

Sales of Long-term Assets $0 $0 $0

New Investment Received $0 $0 $0

Subtotal Cash Received $243,800 $329,675 $405,759

Expenditures Year 1 Year 2 Year 3

Expenditures from Operations

Cash Spending $70,800 $76,000 $105,000

Bill Payments $173,564 $232,719 $263,829

Subtotal Spent on Operations $244,364 $308,719 $368,829

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0

Principal Repayment of Current Borrowing $3,000 $6,000 $3,000

Other Liabilities Principal Repayment $0 $0 $0

Long-term Liabilities Principal Repayment $8,400 $8,400 $8,400

Purchase Other Current Assets $0 $0 $0

Purchase Long-term Assets $0 $0 $0

Dividends $0 $0 $0

Subtotal Cash Spent $255,764 $323,119 $380,229

Net Cash Flow ($11,964) $6,556 $25,530

Cash Balance $21,436 $27,993 $53,522


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VIII. CRITICAL RISKS

Non acceptability of the product.

Most critical is the customers' changing tastes.

High rent cost

When the economy takes a down turn, people changetheir spending priorities.


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IX. EXIT STRATEGY

If the project does not run successfully we would

wind it up and payback the loan by selling

machineries, equipments and tools or Company will

hire a qualified business broker to sell the business.


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X. APPENDIX

(a) curriculum vitae of the owners

(b) ownership agreement

(c) certificate from pollution board

(d) memorandum of understanding (e) articles of association

(f) other documents that help in marketing the project

viability


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THANK YOU

esbd dummy project.ppt

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