KINGDOM OF ANIMALS

EXECUTIVE SUMMARYMADAGASCAR is a pet lounge company focussed on providing pets and complete pet services especially their cleaning, grooming, boarding facility, veterinary services, accessories, food items and gifting.

People have great attachment with their pets but often find problem cleaning them at home, feeding them properly, and getting various things for them at different places. The company want to ensure and create a certain level of experience while purchasing pets and giving services to them. We are committed to provide an unprecedented range of pets not easily available in the current market. This vacuum is what we are after and thought of making a company dedicated to provide animals such as chameleons, ant farms/formicarium, spider farms, dogs, cats, birds etc. and their all service requirements.

According to a research conducted by Research and Consultancy Enterprise (RACE) of Institute of Management Technology (IMT), Ghaziabad there are about 2.2 million pets in the Indian household with the population increasing by 26% every year. The pet care industry in metropolitans in India has an estimated revenue earning potential of Rs. 350 crores. Out of this around 250 crores is contributed by pet foods and the remaining 100 crores comes from grooming and healthcare sector.

The idea we are selling is ‘One-stop shop’ for all your pet needs. Initially a servicing centre would be opened up in posh area of South Delhi, i.e. Greater Kailash 2 where pet owners prominently exist and pet is a status symbol. A free after service delivery within 5 km would also be given to customers to gain that extra edge over competitors.

The main aim is to become a trusted name in pet care. The services of expert veterinary would be taken up and to begin with, tie-up with organisers of pet shows, major pet food companies and social networking tools would help. The finance will be sourced through seed capital of 18 lakh initially with each of 3 partners contributing 6 lakh thus making total finance available Rs 18 lakhs.The first year would be focussed on creating the brand value of the company through various media and promotions. The company would be able to generate good returns for its partners in the 1st year itself because of huge sources of revenue streams such as through pet sales, cleaning , grooming, food, training, pet birthdays, corporate gifting(e.g. giving 8 gold fish and 1 black fish is considered lucky in feng shui) and increasing returns following years. The company would expand 1-2 branches at the end of 3rd year when the brand name is established and the company will be able to get bank loan and in a period extending to 5 years we want to be known as a leading brand in pets caring and servicing industry. Once that is established the company will opt the option of franchising to expand nationwide in important metropolitans and where dominant pet lovers and owners exist.

COMPANY

MISSION:- The company envisions itself in every segment of the pets world which human have attached to and to provide services to keep this relationship a healthy one. The company would

cater to all the servicing needs of the pets.

VISION:- As pets provide knowledge, we will be pet providers and

more than a brand in the pet care industry.

ORGANIZATION

PARTNERSHIP STRUCTURE: It would be a partnership among 3

partners with equal capital and profit share.

The partnership would be registered under the partnership act, 1932.

A partnership deed will be made specifying the remuneration and other benefits to the partners

THE PEOPLE

MANAGEMENT TEAM

3 members would be managing the organization. Jasdeep Singh,Praveen Sharma and Mohit Jain

all fresh graduates armed with BBA degree Jasdeep has a certified course in organic

chemistry so he would be involved in making herbal products for pet treatment and services

Praveen has done crackers business during Diwali so he can use his customer handling skills

A professional VET would be hired for medical services

ADDITIONAL PROFESSIONALS TO BE TAKEN: A Vet- the services of experienced veterinary

with at least 2 years of experience would be taken who would look after the pets medication

A certified groomer/hair dressers- a certified groomer/hair dresser is needed to look after the grooming facilities of pets

An experienced trainer- the trainers would be contacted on demand of the customers

A cab driver - a cab driver would be hired for dropping and emergency pickup of pets

INDUSTRY ANALYSIS

WHY:•Large number of single child in families and single parents living alone in huge cities. •Many old couples are living alone, away from their children who have settled abroad. Be it the need of security or a desire of companionship, these people are commonly found owning pets. Pets seem like perfect companions providing unconditional love and not expecting anything in return.•Pets are also considered as fad in celebrity culture.•India has emerged as one of the best potential pet care markets in the Asian sub-continent after Japan owing to the changing lifestyles, rise in nuclear families and double income households, which have encouraged the growth of pet ownership in the country.

In India pets are getting pampered and petted like never before. And their owners are more than happy about this, even if it sometimes causes a dent in their wallet.

CURRENT STATUS:According to a research conducted by Research and Consultancy Enterprise (RACE) of Institute of Management Technology (IMT), Ghaziabad there are about 2.2 million pets in the Indian household with the population increasing by 26% every year. The pet care industry in metropolitans in India has an estimated revenue earning potential of Rs. 350 crores. Out of this around 250 crores is contributed by pet foods and the remaining 100 crores comes from grooming and healthcare sector. The industry is growing rapidly in India. 

PET MARKET IN INDIA

•Indian pet market is largely dominated by dogs that constitute 75 percent of total pet market followed by cats that make up 15 percent and 10 percent is made up by birds, fishes and other pets. It is estimated that there are 3.6 million pet dogs in the six major cities of India.

NEW TRENDS

•We want people to have Ant Farms , Spider farms because they provide a great insight to the technicality of nature.

• We want to generate people’s love towards exquisite pets like Chameleon, Hamster etc.

• New trend of grooming pets is catching up fast.

• Celebrating your pet’s birthday was a hidden need which we feel we can cater to.

PET PRODUCTS

Pet food is the fastest growing segment when it comes to pet products. Dogs get to choose from a variety of branded food and snacks these days.

The domestic product market is expected to grow at an annual rate of 10-15% according to Euromonitor, a global market research firm. “India is predicted to supply the world with the bulk of pet-related products in the coming years” says Binoy Sahee, the Director of India International Pet Trade Fair (IIPTF) that organizes pet fairs regularly.

Pet Salons:A research conducted by Dare magazine says that the total market size of  the pet grooming industry was 132 crore in 2007 and is expected to grow to 399 crore by 2013. Preeti of Scooby Scrub Parlor got a majority of her customers from her pet food and accessories shop – Pet bytes. She now caters to around 4,000 customers, and the figure is rising sharply.

COMPETITION:

SCOOPY SCRUB & PET BYTES14-A, Aurobindo Place Market, Hauz Khas, New Delhi - 110016Ph: (91 11) 32608809, 3244 8809, 93111 28809, 93110 28809, 98994 37111website: www.scoopyscrub.com

LEGAL COMPLIANCES:AS PER PET SHOP RULES 2010

A fees of Rs 5,000 has to be paid for getting registered and then an annual renewal fee of Rs 2,000 has to be paid under Schedule B to be deposited to Municipal Corporation

A certified Vet Breeders Information to be submitted to the

municipality . Full time attendant ,if pets are to be kept in

premises at night No sale of animals to a person less than 18 yrs of

age The building should be a strong structure with

proper fire fighting , sewage and lighting.

PRODUCT AND

SERVICES

Products: Pets including dogs, kittens, birds and exquisite

species such as ant house, Chameleons, guinea pigs etc

Pet foods and accessories Pet accessories Designer T-Shirts & Sweaters Jackets & Coats Scarfs, ties, bow-ties, bandanas, etc. Variety of toys Pet houses & kennels Made to order kennels Veterinarian items

SERVICES:

oBody ClipoBreed Specific StylingoBasic GroomingoComplete GroomingoShow GroomingoColouring / StreakingoAroma/Herbal Massage

oAroma Therapy BathoMedicated BathoTick & Flea treatmentoD – MattingoTartar Treatment

SUPPLIERS Kennel Club of India (KCI) Mr.Verma

House No. 102, Gali No.-6Pushta No. - 5Bhanjan Pura New Delhi - 110053Mob:- +91- 9312288234

Rohit sharma9250689058SUAREM KHAN9018429627

MARKETING AND SALES STRATEGY

MARKET SEGMENTS:

Household markets: 1.Household basic market covers existing pet owners as well as potential pet purchasers who want the servicing facilities of their pets.

2.We want to provide ant farms, chameleons, spider farms etc as they are educational in providing the dexterity of nature.

Corporate markets : In corporate sector we are focusing on markets of gifts used in promotions and high profile deals such as gifting 8 Gold fish and 1 Black fish etc.

QUESTIONNAIRENAME:ADDRESS:PHONE. NO:

Q1: Do you own a pet? Yes NoQ2: Do you plan to buy any new pet? Yes NoQ3: Which pets do you currently own? Which breed? (If applicable) Dog Cat Guinea Pig Others Breed:_______________Q4: How often do you clean your pet? Weekly Monthly Quarterly Once in 6 monthsQ5: Cleaning being a difficult task, would you prefer getting it cleaned and groomed from expert? Yes NoQ6: How often do you take your pet to a Veterinary? Monthly Once in 2 months Quarterly OccasionallyQ7: Would you prefer one stop solution for all your pet need? Absolutely Yes No Q8: Would you like to get your pet ready for pet show? Why not No, not reallyQ9: You being out of home, would you like to keep your pet under a safe shelter? Yes NoQ10: What all things do you expect for your pet which you are unable to get now? _________________________________________________________________ _________________________________________________________________

MARKET RESEARCH RESULT A survey was made on a sample of 50 pet owners in

South Delhi about different pet needs with following result :

1. 85% of pets are dogs followed by cats10% & fishes5%

2. 60% of owners clean their pets weekly while other 40% monthly

3. 60% would prefer getting it cleaned and groomed from an expert

4. 65% of owners take their pets monthly to a Vet followed by 25% who take them once in 2months

5. 95% would prefer a one stop solution for all their pet needs

6. 60% would like to get their pet ready for a pet show

7. 85% want a good boarding facility for their pets when they are out

COMPETITIVE STRATEGY

All-in-one stop shop for pet needs. Make people aware about different pets than

dogs. Spear heading in new markets of corporate

gifts. Celebrating your pet’s birthday. Birthday return gifts. Transport service within 5km range. Workshop for making you understand your

pets and train your pets. Herbal shampoos and cleansers prepared indigenously

for pets.

BRAND STRATEGY

MAKING A ONE-STOP-SHOP

BRAND

PREMIUM BRAND FOR SERVICES

EASY ACCESS TO ALL PET RELATED

THINGS

VARIETY OF PETS

AVAILABLE TO CUSTOMERS

PRICING STRATEGY

Competitive pricing for cleaning and grooming Premium pricing for exclusive accessories and

toys Special membership coupons to attract

customers Some of the pricing charged will be: Cleaning= Rs 500-1500 Grooming=Rs1,000-5000 Boarding= Rs 500 per day Aroma and special baths = Rs 1,000-2,000 Membership = Rs 5000 yearly

ADVERTISING & PROMOTION STRATEGY

Public Relation Agency Pet shows. Online portals and social networks. Celebrate your pet’s special days. Membership subscription. Association with pet NGOs. Free 1st wash* Free dietary plans* Get framed with your pets. Newspapers and media. Poster in Parks. Special food for special breeds.

OPERATIONS STRATEGY

FACILITIES

LOCATION:1,350 sq.feet ground floor with 900sq.feet

basement Near a residential area in south Delhi.GROUND FLOOR Billing center ,Pet products , food, accessories ,

pets for display ,ant farms ,spider farms and pet kennels.

BASEMENTHalf of the area for day boarding and the other

half for grooming ,cleaning and veterinary service.

• Cab standing outside for emergency and dropping pets.

PERSONNEL REQUIREMENTS

1 groomer +1 wash helper in beginning plus 1 more after 3 months.

2 salesman. 1 vet. 1 attendant looking after animals at night. 1 cab driver. Billing and look-after to be done by the

partners.

CRITICAL RISK

Risk of pet health Risk at boarding facility Competitors move of expansion Change in govt. regulations Non probable demand

STRENGTHS:• EXQUISITE PETS• ONE IN STOP SHOP• HOME DELIVERY• HERBAL PRODUCTS

WEAKNESS• BEGINNERS IN MARKET• EXTERNAL SUPPLIERS

OPPORTUNITIES:• PREMIUM MARKET OF CORPORATE GIFTING• BIRTHDAT PARTIES• MARKET GROWTH RATE OF 26%

THREATS:• EXPANSION MOVE BY COMPETITORS• CHANGE IN GOVT. REGULATIONS

SWOT

FINANCIAL PROJECTION

SOURCES OF FINANCE

Source Amount( in Rs.)

Seed capital (6lakhx3) 18 lakhs

Total 18 lakhs

INITIAL INVESTMENTParticulars Amount in Rs.

Computer 25,000

Furniture & Fittings 2,50,000

CNG cab along with modification

1,50,000

Equipments 75,000

Lease security 3,00,000

Inventory 5,00,000

Working Capital 5,00,000

Total 18,00,000

SALES FORECASTACCORDING TO RESEARCH AND CONSULTANCY

ENTERPRISE (RACE) THE TOTAL NO. OF PETS IN DELHI ARE AROUND 80,000 IN 2011

A total of 80,000 pets in Delhi

20,000 in south Delhi

area

Company focusing on 10000 customers

COST PROJECTION QUARTERLYParticulars Quarter 1 Quarter

2Quarter 3 Quarter 4

Rent (1,50,000 p.m.)

4,50,000 4,50,000 4,50,000 4,50,000

Salesman(7500*2)

Driver and cab charges

45,000 12,000

45,00012,000

45,00012,000

45,00012,000

Maintenance of pet

30,000 30,000 30,000 30,000

Facilities 30,000 30,000 30,000 30,000

2 full time pet attendant

36,000 36,000 36,000 36,000

Groomer + Helper 60,000 1,20,000 1,20,000 1,20,000

Running Inventory 80,000 1,00,000 1,00,000 1,00,000

Advertisements & promotion

75,000 50,000 50,000 50,000

Miscellaneous 15,000 15,000 15,000 15,000

Total 8,33,000 8,88,000 8,88,000 8,88,000

REVENUE PROJECTIONS QUARTERLY

Particulars Quarter 1 Quarter 2 Quarter 3 Quarter 4

Pet sales 1,50,000 2,00,000 2,50,000 3,00,000

Food items 2,00,000 2,50,000 3,00,000 3,00,000

Grooming and cleaning

1,00,000 1,25,000 1,25,000 1,50,000

Accessories and pet houses

60,000 75,000 90,000 1,00,000

Birthday parties and corporate gifts

50,000 1,00,000 1,00,000 1,25,000

Training and emergency

40,000 60,000 60,000 60,000

Commission from vet

60,000 60,000 75,000 75,000

Boarding fees 60,000 75,000 90,000 75,000

Membership fee 50,000 50,000 50,000 50,000

Total 7,70,000 9,95,000 11,40,000 12,35,000

ROI & BREAK-EVEN ANALYSIS:

Total Profit = 5,93,000

Net Profit= Margin- Dep. & license =

5,93,000 – (38,000+5000) = 5,50,000 Return on equity(ROI) = 5,50,000 x 100 = 30.55 %

18,00,000 Pay back year = Investment .

Average Cash inflow for the years

= 18,00,000 = 2.7 years

6,60,000(assuming 20% growth p.a.)

Particulars Quarter1 Quarter2 Quarter3 Quarter4

Revenue 7,70,000 9,95,000 10,90,000 12,35,000

Cost 8,33,000 8,88,000 8,88,000 8,88,000

Marginalprofit

(63,000) 1,07,000 2,02,000 3,47,000

EXPANSION STRATEGY

STRATEGY

The company plans to open 2 more stores in the posh areas of Central Delhi and West Delhi once it becomes successful in 3rd year by raising bank loans and reinvesting profits.

In a period spanning 5 years the company would take the option of franchising the business for establishing nation wide brand expanding in major metropolitans.