CHHABRA BROS PVT LTD.

2014

Business Plan for

Clean Sweep Entrepreneurial Stratagies

Manpreet Singh

U N I V E R S A L B U S I N E S S S C H O O L M U M B A I

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Acknowledgement

I would like to express my special thanks of gratitude to my teacher & Dean Mr. Bibhas Basumatary who gave me the golden opportunity to do this wonderful project on the topic Business plan for a New Idea, which also helped me in doing a lot of Research and i came to know about so many new things. I am really thankful to them.

Secondly, As doing any project require a lot of guidance and assistance, I would like to thank my teacher again for his guidance. I would also like to thank my friends who helped me a lot in finalizing this project within the limited time frame. It was due to my teacher’s push that I was able to complete his project. I sincerely want to thank all

those who helped me directly or indirectly to complete this project

Manpreet singh chhabra

1329

Batch MBA3

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Table of contents Page no

1. Cover Page 1

2. Acknowledgement 2

3. Table of contents 3

4. Executive summary 4

5. Business Concept 4

6. Creation of new category 5

7. Problem solved by the idea 6

8. Segmentation 7

9. Segment attractiveness 7

10. Target 7

11. Who currently solve the problem 8

12. Pain points of the customers now 8

13. How much is the customer willing to pay currently 8

14. Why the customer will buy this product 9

15. Product design 11

16. Marketing Strategy 4Ps of Marketing 9, 10

Place

Product

Promotion

Price

17. Business Model Canvas- 9 Building blocks 12, 13

Key partners

Key Resources

Key Activities

Value Propositions

Customer Relationship Management

Customer segments

Channels

Cost structure

Revenue stream

18. Action Plan 14

19. Financial Plan 15

20. Citation 17

Clean Sweep

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Executive Summary.

Clean sweep is a Product designed especially for commercial buildings for their cleaning. World is

growing at a very faster rate. Real estate is developing day by day. Huge buildings are being constructed.

The major problem lies with the maintenance of these buildings. People are ready to build huge

buildings but they are unable to maintain them. For this they hire professional Cleaners. These cleaners

do the service on contract basis, but still cleaning of exteriors of these huge and tall buildings is still a

tough task. Why not introduce a new product? Clean sweep is an automatic retractable machine that

can be mounted on the top of the building, connected to a water supply, this machine will take the

minimum water required for cleaning and by just pressing a single button it will clean the whole exterior

of the building.

Business Concept.

To provide a safe & easy way to clean the buildings

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New Category

It will create a whole new category of automatic building cleaners. Whether it is a glass building or brick building or any type of building. The product caters to all types of buildings.

The idea is conceptualized by joining two different products.

1. I saw some workers cleaning the college building by tying temporary stair

2. Then I saw a some ladies pulling water out from a well, using a bucket & a pulley.

So combining two pulleys and a dusting cloth & providing power to the system either by electric motor

or by mechanical motor, A new product can be created that can do the tedious work of cleaning these

building very easily.

It has two benefits..

1. It saves the requirement of laborers, No labors required now.

2. It saves a lot of time

Now even the C.E.O of the company can clean his office building. All he has to do is just press a button &

all work will be done automatically.

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Problems Solved

It will solve the following problems

1. Requirement of Many laborers: Till now cleaning of the huge buildings require many laborers to

do this work. Now with the introduction of clean sweep, all the work will be automated. No

requirement of huge labor force.

2. Huge Expenditure: Every time the building cleaning require huge lobor force & so cost required

is also huge. Now Just by one time installation of this cleaning system, Huge cost saving can be

done.

3. Time: If a building is big it take several days for the whole cleaning process to get completed.

Now with the introduction of this product, a whole building can be cleaned in less than on hour.

4. Life Risk: Presently, the cleaning of exterior of the buildings is done by hanging a temporary

swing . People sit over it cleans a part of the building & move to other. Buildings are huge. Just a

small slip or imbalance can cost the worker, his life. Now with the installation of the new

system, Cleaning process is completely Risk free.

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Segmentation & Segment Attractiveness

Commercial Buildings Residential Buildings Glass Other Glass Other

Large Size

Require Frequent cleaning, Involves

High risk

Less frequent cleaning required, Involves High risk

Rarely exist, Frequent cleaning

requirement, Involves high Risk

Requires cleaning once or twice a year. High risk.

Attractiveness High Medium Medium Low

Medium Size

Frequent cleaning Required, Low risk

Rarely required cleaning. Low risk

Rarely exist. Frequent cleaning required.Less risky

Rarely cleaning required. Low risk.

Attractiveness High Medium Low Low

Small Size

Frequently cleaning required.

Less risky

Less frequently cleaning required. Low risky as well

Less frequently cleaning required. Low risky as well

Rarely required

Attractiveness medium Medium Low Low

Target Segments.

Large & medium size commercial buildings will be our major target segments, will other segments will

also be targeted but with low priority. As the segment attractiveness of the two segments is very high,

so in the first phase of the project, they will be the main target.

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Who is solving this problem currently?

Currently the cleaning services of the exteriors of the buildings are done on contract basis. Contractors

hire laborers to do the same work. Just a few days back, we too for cleaning of our college hired 25

labors for the work. They completed the same work in almost a month, cleaning one wall a day. The way

of working of these labors is risky too. They make temporary stairs or hang swings and stand on them

without proper safety measures, keeping their life on risk.

Pain points not solved yet.

The arrangement at present is nothing more than a temporary arrangement. Pain points are:

1. Only a temporary arrangement: Currently all cleaning services are working on a temporary

model. They have to pay very high as it involves lots of laborers. Also it is a very time consuming

process. Human body has limits; it cannot do a lot of mechanical work at once.

2. Very expensive:As the process involves lots of labors and a many days, the price for the cleaning

process is also very high.

3. No frequent Cleanings: As the process is temporary & expensive, Customers do not hire them

quite often but they want their offices & homes to look good, they want it to get cleaned often.

But currently it is not possible with the present model.

How much is customer willing to pay?

Customers in present world are ready to any amount if they get value for it. Considering the present

situation, If a building has 10 glass walls of 100 ft height & 20 ft width, it generally takes 250 labor hours

for the process to get complete. The charges are approximately 100rs/hour. So it will cost

Rs.25000/cleaning. So if the cleaning is done 4 times a year it will cost a whopping Rs. 1 Lac per year.

Now if the whole setup of clean sweep for same area cost the customer approximately 90,000Rs with

free maintenance for 3 years, Customers will be more than happy to pay for such service.

Clean Sweep

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Why would customers buy our service?

It is an era in which customers buy anything which give them a good value & relieve their pains. Clean

sweep is a service which is the medicine for all the pains of the customers.

1. It provides a permanent solution for cleaning the buildings

2. It takes very less time to clean the building whereas at present it takes days to clean the same.

3. It is cheap in comparison to existing model, if taken a view of long term

4. It involves less men power; just a single person can do it.

5. The process is hassle free, just a button to press & whole building is clean.

Marketing Strategy

Place:

Initially the product will be made available in Mumbai, from our Mumbai office. Also it will be available

on our website www.cleansweep.com. In the second phase there are plans to launch product in all the

metro cities of India followed by Tier 2 cities in phase 3 from the offices in respective cities.

Product:

Full system will be made up of strong aluminum body with 250volt electric motor installed on it. It will

be coated with zinc for making it rust free & long lasting. Size of side chains & length & number of

clamps will depend of the measures of sight on which the system is to be installed.

The product will come in two variants.

1. For Glass walls

2. For Concrete / Brick walls

Only difference in the two variants will be the type of sponge cleaner used. For glass walls, it will be soft

sponge & for brick walls it will be hard sponges.

Promotion:

Promotion will be done by intense social media marketing & door to door presentations of the product.

A tv commercial will also be launched during initial introduction phase of the product. Hoardings on

strategic locations in the city. Also as a part of promotion, initially 20% off on the installation cost & 3

years free maintenance services will be given along with the product package. Customer can also avail to

0% EMI options, Provided by Manpreet Bank.

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Pricing

Width(ft) Length(Ft)upto Price/ft of width

0-100 100 Rs.900

100-200 100 Rs.800

200-300 100 Rs.750

300+ 100 Rs.700

25+ 100+ Rs.980

Installation charges Rs. 10/Sq ft.

Maintenance charges Rs.5/Sqft/visit

Charges for Water pump is to be borne by the Customer

Price of clamps for support Rs. 700/Clamp (2 clamps will be free)

Every 30ft width will need one additional clamp.

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Product Design.

A glass wall with clean sweep cleaner installed on it

Front view of Clean Sweep cleaner

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Business Model Canvas- 9 Building blocks

Key Partners

Supplier of raw materials

Servicemen

Transport Persons

Key activities

Installation

Maintenance & Repairs

Key Resources

Electric Motors

Harwdare Materials

Computers

Hoses

Value Propositions

Risk Minimization

Frequent cleaning

Low price, Cost saving

One time installation

3 year warranty

Customer Relationship management

Free maintenance

20% discount on installation

Free checkups & repairs

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Channels

Internet

Mobile Phones & similar Communication devices

Physical shops

Delivery vehicles

Cost Structure

Raw materials

Salaries & Wages

Transportation cost

Revenue Streams

Initial installations

Maintenance & repairs

Warranty extensions

Sales of Additional Materials

Action Plan

The Project is planned to be executed in three phases

Phase 1 : (18 Months)

In phase 1, The product will be launched in mumbai city with one office in lower parel. Intensive

marketing through Social media will be done. Initially the service will be availabe for glass buildings

targeting mainly the Commercial buildings. Raw material will be procured only on order. In the

initiall phase, 400 orders of average Rs. 90,000 each is expected. Generating total revenue of Rs.

36lacs for the company.

Phase 2: (30 months)

During Phase 2, the product will be launched in all metro cities like Chennai, Kolkata, Bangalore &

Delhi. Marketing through Television will be done in ths phase. Also major attention will be on door

to door demonstration of the product. Still major target will be commercial buildings only in this

phase too. Lanch of the service for Brick & Concrete buildings will also take place in second half of

his phase. Expected 2000 orders of average Rs. 90,000 each is expected.

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Phase 3: (30 months)

During Phase three, further expansion will take place in major tier 2 cities. During ths phase, all our

target segments will be catered. It is during this phase, The company is expecting to generate its

maximum Profitability as it will achieve its break even somwhere between phase 2 & phase 3. Door

to door demonstration will be a major marketing tool in this phase too. 5000 orders of Rs. 90,000

each is expected.

Financial Plan

(All Assumptions)

Organisation Cost

Registration cost

Equipments cost

Amount (rs) 10,000 1,00,000

12 workers with average salary 0f rs 10000/ worker/month & 5 manager 15,000/month salary

68,40,000

Revenue generation (90,000*2400) (over 4 years) 21,60,00,000

Cost of purchases (60% of Sales) 12,96,00,000

Expansion cost 50,00,000

Rent (30 months of Phase 2)(4 offices * 96000/year) 9,60,000

Misc. Cost 5,00,000

Marketing Expenses 40,00,000

Tax @ 30%

Loan of Rs. 30,00,000 @ 8% P.A. in phase 2 (3 years moratorium) 6,00,000

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Profit & Loss Statement

(Over the period of 4 Years) (Consolidated)

Debit Amt(Rs) Credit Amt(Rs)

Cost of goods sold (including Maintenance for 4 years)

12,96,00,000

Sales 21,60,00,000

Organization Cost 1,10,000

Salaries & Wages 68,40,000

Expansion Cost 50,00,000

Rent 2,40,000

Misc. Cost 5,00,000

Marketing Expenses 40,00,000

By Gross Profit 6,97,10,000

Total 21,60,00,000 Total 21,60,00,000

PBIT 6,97,10,000

Interest 6,00,000

PBT 6,91,10,000

Tax 2,07,33000

PAT 4,83,77,000

So the basic financial analysis shows that the company will be generating a PAT of approximately Rs. 5 Cr. Over 4

years. With a CAGR of approx. 56% Y to Y.

Whereas ROI stands at 21% which says that it is a good business to invest.

Still these are only approximations. Actual operations may differ from what the theory.

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Citation

- Images From Google.com

- Business model generation book

- Marketing management 14e by phillip kotler

- The Hindu News paper

- The Economic times

- Business plans Handbook by Lynn M. Pearce.

- The Creative manager’s pocket book by John townsend & Jaques Favier