business plan on leather and leather products

8/3/2019 Business Plan on Leather and Leather Products

1/19

Group Members:- Rahul JogiPragnesh PatelRam UpadhyayRaj Vinchhi

Krunal Patolia

Submitted To:- Prof. B.N Narielwala

Submitted By:-

Royce Leather

Reflects YourPersonality

5/1/2012 1


2/19

Royce LeatherVision

Become the Indias largest exporter of leather garments in 2020.

Mission

Provide customers satisfaction through quality products.

Core values

Respect Honesty Equality

5/1/2012 2


3/19

Royce LeatherNature of business

It is manufacturing business of leather garments includingjacket, ladies hand bags, key chain, shoes, skirts, belts andwallet.

We shall purchase finished leather from different suppliers thenmake different products mentioned above according to thecustomers demand.

At early stage of business we will focus on jacket, skirts andhandbags, with the passage of time we will expand our productline. In other words we have defined wallet, belts and shoes asexpansion of business.

5/1/2012 3


4/19

Finance Identification of finance

First of all we have decided our capacity of units per month that is 350 pieces.

Initial/fixed cost Rs. 0.2 million

Operating cost/expense Rs. 0.5 million

Reserve Rs. 0.5 million

Total investment Rs. 1.2 million

5/1/2012 4


5/19

Target Customers Export market is the primary market for a leather

garment-manufacturing unit.

In the export market, major customers include chainstores and major garment brands in Europe and USA.

Major customers of Indian leather garments areGermany, USA, United Kingdom, and UAE & France.The business is done either directly to the buyers orthrough middlemen.

5/1/2012 5


6/19

Competitors analysis It is very important to analyze the competition environment of the

industry in order to compete successfully. It is good for strategy makingto identify the strengths and weakness of competitors and try to

differentiate itself from them.

Our main focus to export our garments (goods) in western world,Pakistani and Chinese garments products are our rivals because theyhave high market share in leather garments. Indian designers areinnovator in garments. In our business customers are the main

innovators and designer of the products, they can customize theirproducts through our website and can send their order along their owndesigns. We shall also target the South African market where quality isnot issue because they are price conscious. It means that we are dealingtwo kind of customers as price and quality conscious.

5/1/2012 6


7/19

Market segmentationMarket is divided into two major segments as:- National market segmentation. International market segmentation.

Both further divided into following:- Individual/ single consumer. Business customers.

Individual consumer are those who will purchase smallamount of items for their personal use and businesscustomers cover all the wholesalers, retailers and othersbusiness who will sell them to their customers.

5/1/2012 7


8/19

Description of Venture

Product

We are dealing in leather garments including

Leather jacket Ladies handbags

Leather shoes

Leather belts

Leather skirts Leather wallet

Leather gloves

5/1/2012 8


9/19

Manufacturing process Matching.

Cutting.

Assembling. Stitching.

Finishing.

5/1/2012 9


10/19

Operational Plan

Basically operation plan is mixture of following threeactivities as under:-

Description ofcompanys operation.

Flow of order for goods.

Technology utilization.

5/1/2012 10


11/19

Operation DepartmentOur operation activities are based on supply chain management

system for our product, name & number of suppliers which areconcerned in our project and process of manufacturing as a

whole.

The connection with customers is also a major function of ouroperation plan. Here we make a proper direct to our suppliers as

well as our customers.

The overall activities regarding product manufacturing to supplytoward customer is associated with this function:-

To select the appropriate suppliers. To check the performance of current suppliers.

5/1/2012 11


12/19

Marketing department It is very critical department of our business because

production/manufacturing is not a big task but it isvery important how to reach the customers, so

marketing department will perform the followingfunctions:-

Pricing.

Promotion. Distribution.

Demand forecasting.

5/1/2012 12


13/19

IT departmentWe are also giving online shopping so it is necessary

for us to focus on the information technology as well asits importance. It will perform the following

functions:-

Update the website.

Promotion through e-marketing and different website.

Invoicing of bills. Make query.

Customers & suppliers contact via email.

5/1/2012 13


14/19

Marketing Plan

Pricing.

Value Based Pricing.

Cost Based Pricing. Distribution.

Promotion.

Showbiz Magazine.

Product Forecasts.

5/1/2012 14


15/19


16/19

Sources of funds

Equity 100%.

Each Partner will come up with the Ivestment of240000 each.

Total Investment of 1200000.

5/1/2012 16


17/19

Financial AnalysisWill be shown through word document.

5/1/2012 17


18/19

Break-even analysisWe have done this analysis on monthly basis it means

that initial fixed cost and variable cost is considered inthis analysis.

5/1/2012 18


19/19

5/1/2012 19

business plan on leather and leather products

Documents