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Save the energy, Save the world

Table of Contents

EXECUTIVE SUMMERY: ................................................................................................................................. 3

MISSION STATEMENT: .............................................................................................................................. 3

VISION STATEMENT: ................................................................................................................................. 3

INTRODUCTION: ............................................................................................................................................ 3

PRODUCT AND COMPANY NAME: ................................................................................................................ 4

PRODUCT DEFINATION: ............................................................................................................................ 4

LOGO: ........................................................................................................................................................ 5

SOLOGAN: ................................................................................................................................................. 5

INTELLECTUAL PROPERT RIGHTS: ................................................................................................................. 5

PATENT: ..................................................................................................................................................... 5

TRADEMARK: ............................................................................................................................................. 5

MARKETING RESEARCH: ................................................................................................................................ 6

TARGET MARKET: ...................................................................................................................................... 6

POTENTIAL CUTOMERS: ............................................................................................................................ 6

MARKETING PLAN: ........................................................................................................................................ 7

SWOT ANALYSIS: ....................................................................................................................................... 7

STRENGHTS: .......................................................................................................................................... 7

WEAKNESSES: ........................................................................................................................................ 7

THREATS: ............................................................................................................................................... 7

OPPORTUNITIES: ................................................................................................................................... 7

COMPETITORS: .............................................................................................................................................. 8

MARKETING MIX STRATEGY: ......................................................................................................................... 8

PRODUCT: ................................................................................................................................................. 8

FUNCTIONAL PURPOSE: ........................................................................................................................ 8

PSYCHOLOGICAL PURPOSES: ................................................................................................................ 8

PLACE: ....................................................................................................................................................... 8

PROMOTION: ............................................................................................................................................ 8

PRICE: ........................................................................................................................................................ 9

COST: ............................................................................................................................................................. 9




TOTAL PRICE PER PRODUCT: ......................................................................................................................... 9

SALES: ........................................................................................................................................................ 9

FINANCIAL PLAN: ........................................................................................................................................ 11

INVESTMENTS: ........................................................................................................................................ 11

CASH AND INVESTMENT ANALYSIS: ........................................................................................................ 12

INCOME STATEMENT FOR 1ST

YEAR: ....................................................................................................... 13

BALANCE SHEET FOR 1ST

YEAR: ............................................................................................................... 14

CASH FLOW STATEMENT FOR 1ST

YEAR: ................................................................................................. 15

INCOME STATEMENT FOR YEAR 2 & 3: ................................................................................................... 16

BALANCE SHEET FOR YEAR 2 & 3: ........................................................................................................... 16

CASHFLOW FOR YEAR 2 & 3: ................................................................................................................... 18

BREAK-EVEN ANALYSIS: .......................................................................................................................... 19

ORGANIZATION TEAM BREAKDOWN: ......................................................................................................... 19

PROFILE: .................................................................................................................................................. 19

CONCLUSION: .............................................................................................................................................. 20

REFERANCE MATERIAL. ............................................................................................................................... 21




EXECUTIVE SUMMERY:

Pakistan is facing big energy crises in today’s world. Pakistan is excruciating enough without

the added joy of 20 hours of power cuts a day. It was a reaction to electricity shortages that

had plunged parts of the country into darkness and scorching heat. At one point the gap

between supply and demand hit 7,500 megawatts (MW), or nearly 40% of national demand.

Meanwhile, several private power producers had to halt or slash production because the

state-run power purchasing company hadn't paid them. They had not been able, because the

biggest consumers (especially provincial and federal governments) had not paid their own

electricity bills. The bills that were paid are not enough to cover the cost of generation.

Our business plan is much related to the electricity shortage. We have developed a product

name “SUN LAMP”, to provide a light utilizing solar energy. This product is developed

keeping in view the climate of Pakistan. The weather in Pakistan is almost sunnythroughout the year. So this product can easily work in this region or our selected target

market. Our product is cheap and affordable, with a good usable life time. The lamp

phenomena works on refraction of light source that does not depend on an electrical

connection. As an example of the physical phenomena responsible for this lighting

technology, the brilliance and “fire” of diamonds are caused by light r efracting and reflecting

throughout the crystal.

MISSION STATEMENT:

To provide cheap, energy-efficient lighting technology being supplied to those who need itmost!

To meet the expectations of our customer and provide them with best is our most prior

priority.

VISION STATEMENT:

Providing the brilliant, with least resources in developing countries

INTRODUCTION:Underdevopled countries like Pakistan is facing lot of energy crises present time. This

shortage is creating disturbance in the economic and as well as environmental condition of

the country. Keeping in view we have developed a cheap product, which can provide light




using solar energy and phenomena of refraction of sunlight. We have named our product as

“SUNLAMP”.

PRODUCT AND COMPANY NAME:

We have named our company as “Zonlicht”. It is a Dutch word meaning sun. Basically our

product mechanism revolves around solar energy utilization that is why we have named our

company as Zonlicth and product as SUNLAMP.

PRODUCT DEFINATION:

Our product contains following few things;

A clear plastic bottle

Distilled or purified water

Chlorine

Sealing caps

The cheap, solar-powered bulbs are actually just clear plastic soda bottles filled with a

mixture of purified water and chlorine or bleach which is commonly used in household

cleaning products. Each bottle is then inserted halfway into a hole made on the roof of a

house, and sealant is applied to prevent leaks and the end result gives the impression of a

small, plastic chimney. The bulb gives off light equivalent to a 55-watt electric lamp as thewater inside the bottle refracts sunlight and other exterior light.

During the daytime sun rays stream into the water bottle, bending (refracting) and internally

reflecting to produce a bright light source that does not depend on an electrical connection.

Good sunlight refraction and reflection depend upon a clear water medium, just as a

diamond’s brilliance depends on its clarity. Chlorine bleach plays the role of destroying the

microorganisms that could proliferate inside the bottles, reducing the clarity of the water. As

for maintenance, water and bleach must be replaced, but only every five years. It is not clear

how long the beverage bottles hold up in this role (caps are protected from cracking withsealant), but replacing them should not be too great a hurdle.




LOGO:

Our logo is sun.

SOLOGAN:

Our company sologan is;

SAVE THE ENERGY, SAVE THE WORLD

INTELLECTUAL PROPERT RIGHTS:

We have done a detailed patent research related to our product on; www.ipo.pk. There was

not a single product which can cause threat to our business, so it was save to start our

business.

http://ipo.gov.pk/Contents/SearchResults.aspx?keyword=solar%20cholarine%20water%20la

mp

PATENT:Now the next step is to go for acquiring patents for our product. Utility patent would be the

best, to provide protection to our product from being copied. The main objective is getting

our mixture formula to get patented. Because it is the main ingredient of our product.

TRADEMARK:

We will use our logo of sun as our trademark for advertising and expanding our business

further.

http://www.ipo.pk/

http://www.ipo.pk/

http://www.ipo.pk/

http://ipo.gov.pk/Contents/SearchResults.aspx?keyword=solar%20cholarine%20water%20lamp





http://www.ipo.pk/




MARKETING RESEARCH:

We begin our marketing plan by marketing research:

We begin our market research by analyzing the situation of our country and our product

type. We see that Pakistan is facing a lot of electricity shortage and our product is somehow

meeting this shortage of demand by providing them with light without any electricity

connection.

Next step was to whether our product will be suitable for this country or not, or our targeted

area. We see that Pakistan faces sun all around almost 365 years. So we see that our product

will be really suitable for this area.

TARGET MARKET:

We see that our product will only run in sunny areas. If we take Pakistan, we see that except

NWFP all other 3 provinces are hot and dry, with sunny evenings almost the year. We see

that whole country suffers the shortage of electricity. But if go and sell this product in high

status society, they have other best alternatives too, like generator or UPS.

Our product is cheap, and for those who cannot afford expensive alternatives. So our target

market would be villages or other slow status areas.

Other than this, this product can also be used in refugees system. Like back in 2005, October

Pakistan faced a big loss of destruction due to earthquake. At that time there was no

electricity for the refugee’s camps, like other necessary items. So this product can also beuseful in this kind of situations.

POTENTIAL CUTOMERS:

We calculated our potential customers by adapting following technique. We see that

Pakistan has a total population of 190,291,129 (est.). We are not covering whole Pakistan in

our first attempt. So we are targeting only Punjab and Sindh for time being. Total population

of Punjab is 91,379,615 and that of Sindh is 35,764,539. According to demographic statistic

index of Pakistan, we researched and calculated that there are 75,000 types of houses which

are capable and in need of our product. Similarly by adopting same technique we found out

that there are 50,000 houses in Sindh which can utilize our product.




Name: Punjab Sindh Total potential

customer

Total population 91,379,615 35,764,539 Nil

Total households

which can use ourproduct

75,000 50,000 125000

MARKETING PLAN:

We begin our marketing plan, by SWOT analysis.

SWOT ANALYSIS:

We have done SWOT analysis for deeper market analysis. Which is as follow;

STRENGHTS:

o We are creating monopoly, in Pakistani as well as in our target market. There is no

exact competitor of our product that is good for our sales.

o Our product is a cost effective product. This will provide us with more revenue.

o The condition of the Pakistan with electricity shortage is creating favorable situation

for our product sales.

WEAKNESSES:

o The design of the product is not mature yet, it has to be developed more.

o There is a probability that the formula can easily be copied.

o Product may not work in cloudy weather.

THREATS:

o Open barriers for competitors to develop a related or more mature product than ours.

OPPORTUNITIES:

o More chances of expanding our business to India, Bangladesh or other neighboring

countries. Because all these countries are facing somehow similar situation like

Pakistan.o High profit margin.




COMPETITORS:

There are no direct competitors of our product in the market. We are creating monopoly for

time being. But if we go for deeper analysis we see that candle or gas lamp are providing

same facilities as our product is giving. But both products have problems. One has to buy

candle more or often after its usage. Similarly like electricity shortage, Pakistan is also facingshortage of Sue Gas. So gas lamps are not that use full. Other than this our target market is

mostly the villages, where there is frequently gas available. Mostly people uses wood or coal

as a fuel or burning purposes.

MARKETING MIX STRATEGY:

For our product sales we have to adopt different market strategies with our limited financial

resources.

PRODUCT:

In order to meet energy crises and electricity less area’s need we have launched chlorine

charged lumini. The product’s basic purpose is to fulfill the needs of those areas which are

without electricity.

FUNCTIONAL PURPOSE:

Provide electricity by placing chlorine in distilled water under sun. Sunrays charged

the chlorine by following the phenomena of refraction of light, which will produce

light or lamination.

Used for both indoor and outdoor purposes.

PSYCHOLOGICAL PURPOSES:

Provided sense of satisfaction by utilizing light of chlorine charged lumini.

PLACE:

Our SUNLAMP targeted audience is villagers of Punjab and Sindh. Mainly those areas which

are without electricity. After successful launch, we will think of targeting other areas too.

PROMOTION:

As our target audience is villagers. So we have to be very selective in our medium of our

promotions. Promotions are done through;

o FM and AM radio

o Broachers and pamphlets




o Through PTCL (if facility available)

o Through campaigns by means of Panchait system.

PRICE:

WAs our main focus is on low price strategy in order to achieve economies of scale, which is

to fulfill customer needs at lowest and affordable prices.

COST:

We have calculated the cost per bottle by following method;

We are getting the cost of 540/- Rs per bottle.

TOTAL PRICE PER PRODUCT:

We are aiming to sell per bottle at the price of rupees 1500/- each. Eliminating the cost we

are getting a profit of rupees 960/- each bottle. Means 64% profit on each bottle.

SALES:

We are dividing our selling of product into 3 rounds. We are assuming that 35 percent of customers will buy the product in 1 st year, 40 percent in the 2nd year and 25 percent in3rd

year.

cost per bottle

other utilities

total 540/-

50/-

100/-

name

chlorine

distilled water

plastic bottle

sealer

promotional expense

wages

administration tools

40/-

25/-

20/-

5/-

100/-

200/-




Now we have calculated total potential customers to be 679364. We are not sure that all of

these customers will buy Total sales. We assume that in 1st year there would be 35% of total

buying customer from above value, in 2nd year there would be 40% and in 3 rd year there

would be 25% of buying customers.

We have calculated total sales for 3years as follow;

1) For 1st year we have estimated that 35% customer will buy our product, than our sales

in 1st year would be 65,625,000.

2) For the 2nd year total customers are 40%, so our sales would be 75,000,000.

3) And for 3rd year the sales would be 46,875,000.

0%

5%

10%

15%

20%

25%

30%

35%

40%

year 1 year 2 year 3

35%

40%

25%

sales




FINANCIAL PLAN:

We begin our financial plan by investments;

INVESTMENTS:

We need 25 million rupees to start our business. We are 5 partners in this business plan.

Each partner is investing 4 million rupees in start. We are getting remaining 5 million rupees

by financing at the rate of 25 % interest annually.

65,625,000

75,000,000

46,875,000

Sales

1st year

2nd year

3rd year




This investment is for 1st year.

CASH AND INVESTMENT ANALYSIS:

Total cash in 1st year=21912500

Liability payable=6250000

Remaining profit=15662500

Profit sharing in 1st year= remaining profit/5=3132500 per share

Reinvestment needed for 2nd year= 4,000,000 per share

Financing for 2nd year= 7,000,000 at the rate of 25% interest

Total cash after 2nd year=25100000

Liability payable=8750000


Profit sharing= remaining profit/5=3270000

Reinvestment needed for 3rd year= 2,575,000 per share

Financing for 3rd year=4,000,000 @25% interest

4,000,000

4,000,000

4,000,0004,000,000

4,000,000

5,000,000

Investment

Ayesha

Rida

Imran

Momin

Numan

financing




Total cash in the end of 3rd year=15537500

Liability payable=5,000,000


Profit per share in the end of project=2,107,500

INCOME STATEMENT FOR 1ST YEAR:

Zonlicht Pvt, Ltd

Income statement

December, 31st 2012

Particular year 1

Sales 65625000

Cost of Goods 23625000

Gross Profit 42000000

Less operating

Salaries 300000

Repair and maintenance 8750000

Advertising 4375000

Bad Debt 0

rent 100000

utilities 4375000

off equip 2187500

Net Profit Before Taxes 21912500




BALANCE SHEET FOR 1ST YEAR:

Zonlicht Pvt, Ltd

Balance Sheet

December, 31st 2012

ASSETS LAIBILITIES

Current Assets

Cash 21912500 paid in capital 6250000

Fixed Assets 0 owners’ equity 17850000

Office

Equipment

2187500

Total Assets 24100000 Total liabilities & equity 24100000




CASH FLOW STATEMENT FOR 1ST YEAR:

Zonlicht Pvt ,Ltd

Cash flow Statement

December, 31st 2012

Outflow of Cash

Particulars yearly

Office rent 100000

Salaries 300000

Bills 500000

Material Cost(total cost) 23625000

Equipment 2187500

Advertisement 4375000

TOTAL 31087500

Inflow of Cash

Revenues:

Wallet Sales(units sold) 43750

Total Price 65625000

TOTAL 65625000




INCOME STATEMENT FOR YEAR 2 & 3:

Zonlicht Pvt, Ltd

Income statement

December, 31st 2013-2014

Particulars Year2 Year3

Sales 75000000 46875000

Cost of Goods 27000000 16875000Gross Profit 48000000 30000000

Less

Salaries 300000 300000

Repair and maintenance 10000000 6250000

Advertising 5000000 3125000

Bad Debt 0 0

Rent 100000 100000

Utilities 5000000 3125000

off equip 2500000 1562500

Net Profit Before Taxes 25100000 15537500




BALANCE SHEET FOR 2ND AND 3RD YEAR:

Zonlicht Pvt, Ltd

Balance sheet


ASSETS

LAIBILITIES

Current Assets

Year 2 Year 3 Year2 Year3

Cash 25100000 15537500 paid in capital 8750000 6250000

Fixed Assets 0 0 owners’ equity 18850000 17850000

Office

Equipment

2500000 1562500

Total Assets 27600000 17100000 Total liabilities & equity 27600000 24100000




CASHFLOW FOR YEAR 2 & 3:

Zonlicht Pvt, Ltd

Cash flow statement


Outflow of Cash

Particulars Year 2 Year 3

Office rent 100,000 100,000

Salaries 300,000 300,000

Bills 500,000 500,000

Material Cost(total cost) 27,000,000 16,875,000

Equipment 2,500,000

1,562,500

Advertisement 5,000,000

3,125,000

TOTAL 35,400,000 22,462,500

Inflow of Cash

Revenues:

Wallet Sales(units sold) 50,000 31250

Total Price 75,000,000 46,875,000

TOTAL 75,000,000 46,875,000




BREAK-EVEN ANALYSIS:

Breakeven is a situation, when our investment is equal to our return. A point where there is

no profit no loss. By analyzing the values from income statement, we see that we are gaining

profit in every year. By seeing our return values, we are forecasting our break-even analysis

of 1st and 3rd year to be after 6 months, and for 2nd year to be 9 months.

ORGANIZATION TEAM BREAKDOWN:

PROFILE:

1. Miss Ayesha Farooq

2. Miss Rida Najaf

3. Mr Momin Khan

4. Mr Imran Masud

5. Mr Numan Arif

12 12 12

6

9

6

0

2

4

6

8

10

12

14

year 1 year 2 year 3

investment time period

breakeven analysis




As we have invested equal amount in starting up of our business. So we all five members will

act as a board of directors. Through our mutual coordination and elections we will select one

Chief Executive for one year. So we have selected Mr Numan Arif as our 1 st chief executive.

o Miss Ayesha Farooq will work as Finance Manager.

o Miss Rida najaf will work as a Marketing Manager.

o Mr Imran Mirza will work as HRM Manager.

o Mr Momin Khan will work as Operation Manager.

CONCLUSION:

Hence Pakistan is facing a lot of energy crises in today’s era. Our product will be really useful

and productive in this situation. Other than this project is with high profit margin of 64%,

with low cost structure. Our major focus will be in to redesign this same formula, so that it

can be useful in urban area too. We are also focusing to expand our business internationally,

after successful launch in Pakistan.

Chief Executive

Mr Numan Arif

Finance manager

Miss Ayesha Farooq

Marketing Manager

Miss Rida Najaf

HRM Manager

Mr Imran Mirza

Operations Manager

Mr Momin Khan

Assigned

Department &

Workers

Assigned

Department &

Workers

Assigned

Department &

Workers

Assigned

Department &

Workers



Save the energy Save the world

REFERANCE MATERIAL.

http://ipo.gov.pk/Contents/SearchResults.aspx?keyword=solar%20cholarine%20water%20la

mp

http://www.economist.com/blogs/banyan/2012/05/pakistan%E2%80%99s-energy-crisis

http://www.indexmundi.com/pakistan/demographics_profile.html

http://www.tradingeconomics.com/pakistan/rural-population-percent-of-total-population-

wb-data.html

http://www.tradingeconomics.com/pakistan/rural-population-growth-annual-percent-wb-

data.html

http://en.wikipedia.org/wiki/Punjab,_Pakistan

http://en.wikipedia.org/wiki/Sindh








http://www.tradingeconomics.com/pakistan/rural-population-percent-of-total-population-wb-data.html



http://www.tradingeconomics.com/pakistan/rural-population-growth-annual-percent-wb-data.html

















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