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Assignment Of Entrepreneurship
SUBMITTED TO: Sir Sajjad Mohsin SUBMITTED BY: Zohra Tanveer Mi10MBA017
In the 50s and 60s most of the tanned leather was exported in raw form but soon after the local tanning industry making semi-finished leather made rapid progress in making finished products due to availability of raw material, labor and growing demand in the foreign market. Pakistan Leather Industry has the production capacity of more than 100 million square meters and against the production capacity it is producing only 60 million square meters. More than 450 units of leather garment manufacturers in Pakistan are producing approximately 5 million pieces against the production capacity of exceeding 7.5 million pieces.
Introduction Of Business:
The business which I want to start is of leather products namely leather jackets & gloves. Use of leather goods is increasing day by day. Now-a-days fancy leather goods are being used by the people of even remotest area of our country, because lifestyle has been changing very fast. Fancy leather products are durable and beautiful to look at in comparison to other similar products.
Market Potential:
With the development in tanning technology, good quality leathers are coming to market. Leather products have very high demand in domestic and foreign market. The demand for leather products like hand bags, wallets, purses & belts etc. is increasing gradually. It brings maximum unit value realization as compared to other leather products. The main foreign markets for leather products are Europe, Canada, Japan and USA. There is good scope for expansion of the industry.
Target Market: Labors Young boys & girls Children Working class
NAME OF BUSINESS:
The name of my business is JILANI LEATHER FIELDS which is indulged in the business of manufacturing leather jackets & gloves.
Mission: To become the premier manufacturing organization in the leather industry, gaining market competitiveness and diversifying into value added leather with clean, well maintained and friendly environment.
Objectives: Our aim is to maximize business without compromising on quality. We are committed to meet the changing demands of an evolving organization. We aspire to improve quality norms and enhance our product range. Raw Materials: Leather Silk Cloth for lining Adhesives Solution, spirit, buckles, buttons etc. Satin Andlis
Business ownership The name of business owner is Mr.Tanveer Aslam Jilani. There are three type of structures from which business can be started, which are as follow; Sole proprietorship Partnership Joint stock company
Total Capital Requirement: The total capital requirement including fixed capital and working capital is estimated at Rs: 10 lac. Product Information: Two types of leather products are offered; 1. Leather jackets 2. Leather gloves Working gloves Wielding gloves SIZE PRICE 9.5 -10 inches Rs:75 each pair 14-16 inches Rs:180 each pair
These are available in 3 different sizes in jackets; Small Medium Large Prices of jackets ranging from Rs: 3000-12000
Foreign market
MARKETING MIX:
The marketing mix and the 4 Ps of marketing are often used as synonyms for each other. In fact, they are not necessarily the same thing. "Marketing mix" is a general phrase used to describe the different kinds of choices organizations have to make in the whole process of bringing a product or service to market. The 4 Ps is one way probably the best-known way of defining the marketing mix, and was first expressed in 1960 by E J McCarthy. The 4Ps are:
Place Roughly one fifth of the cost of a product is spent getting it to consumers. Of course, the actual figure varies widely from product to product but generally distribution is a very important element in the marketing mix. Different organizations use different approaches to reaching their customers. I will distribute my products to different local retailers local brands who then sell these products in foreign markets. Promotion It is the process of communicating with customers? For marketing purposes, communication of products and services contributes to the persuasion process to encourage consumers to avail themselves of whatever is on offer. The key processes involved in promotion, include:
branding - creating a distinctive image and character to an organization/and or its products and services advertising - to inform and persuade the public packaging - presenting the product in a desirable and appropriate way public relations activities and other forms of publicity sponsorship Special promotions - e.g. buy one get one free.
Direct selling
Objectives Of Promotion However, there are three basic objectives of promotion. These are as follows: o To present information to consumers as well as others. o To increase demand. o To differentiate a product. Following marketing technique is used for my business.
Direct Selling
For the promotion of my businesses I will use direct selling. Direct selling is a type of sales channel where products are marketed directly to customers, wholesalers and retailers eliminating the need for middlemen. I will conduct Direct selling in one-on-one, in a group or party format, or online.
Sales analysis and buying patterns Questionnaires Focus groups Face-to-face interviews
I will use above mentioned methods to know the; Potential customers Consumption habits of customers Disposable income Buying habits Expectations & expirations Priorities
Targeting Deciding which of these groups to communicate with, and how to talk to them? Jilani Leather Field is targeting young people and childrens for jackets and gloves for labor class. Positioning For giving my competitors tough competition I will go for following positioning strategies; Branding and messaging Corporate identity Price Price needs to be relevant to the product/service and the market. A manufacturer should seek to provide to its customers with products at affordable prices. A firm's pricing decision is often aimed at attracting a particular market segment. The prices for my products are following;
These are available in 3 different sizes in jackets; Small Medium Large Prices of jackets ranging from Rs: 3000-12000
Pricing Strategies
Pricing strategy is an important part of the marketing mix. The price of a product should reflect its image and the need to give a consumer what they want. I will use following pricing strategies for selling my products. Cost-Plus Pricing. Hour-Based Pricing Penetration Pricing Skimming
PRICING FACTORS:
Pricing factors are; manufacturing cost, market place, competition, market condition Quality of product.
Distribution Channels: Jilani Leather Field will distribute its products to local retailers and local brands. After penetrating into the leather market we will also start selling direct to customers by eliminating the use of intermediary. Supply Chain Management Supply chain is the sequence of organizations facilities, functions and activities that are involved in producing and delivering a product and service. It also refers to movement of materials and information within a facility and outgoing shipment of goods and materials in supply chain. Need for supply chain management Improve operations Increasing levels of outsourcing Increasing transportation cost Competitive pressures Manage inventories Benefits of supply chain Lower inventories Higher productivity Greater agility Shorter lead times Higher profits The main supply chain members of Jilani leather field are HMB & PRIME INDUSTRIES, from whom it purchases leather as a raw material.
Raw Materials: Leather Silk Cloth for lining Adhesives Solution, spirit, buckles, buttons etc. Satin Andlis
Proposed Capacity
My business capacity is greatly dependent on the market size and the number of potential client or no: of orders one can attract/get. Leather products will be designed and stitched by the tailors. On average, my business having variety of design made by our tailors and we also prepare orders according to customers demand and requirements. The expected number of orders we receive will be 2-3 orders. Each order consisted of; Gloves 350 Jackets 150
Is one that is near to the market, so that the demand for units of output is high relative to costs of making that input? Is one that is close to a skilled labor force? The easier it is for the firm to attract labor with appropriate skills the more likely it is to produce high value outputs and low costs per unit of output. One that locates close to high value raw materials. The further materials have to travel the lower the productivity of the plant will be.
For Jilani Leather Fields the location which i will prefer is Defence Road Sialkot. I am choosing this location because of many factors; Electricity rates in that area are cheaper Industrial area
The expenses which I incurred before opening of the shop are:1. Initial investment Machines &equipments= 90,000 Furniture= 20,000 Storage cabinets & stools= 20,000 Cartons= 20,000 Stationary materials= 1,000
Salary of the employees:1. Full-time workers= 8,000 per month 2. Part-time workers=4,000 per mon Profit And Loss Analysis I have assumes the profits and losses which will be incurred by me in the running course of business. I have estimated the profits and losses for these years.
Balance sheet
ASSETS
Furniture Land & building Machines Cash Inventory Preliminary expenses Accumulated dep:
Rs:
20,000 4,00,000 90,000 2,00,000 5 ,00,000 60,000 25,000 12,95,000
Total Assets
Strength
High quality leather is used as raw material Fashionable and wearable Exclusive and unique print designs Specialized product range Efficient use of colors and lining material Quick response to Changing consumer needs and demand Having large variety of quality products in all sizes Offers products at affordable prices
Weaknesses
Lower profit margins to compete with already existing leather businesses. Limited capital for marketing. Start-up establishment which will take time to implement systems and policies.
Opportunities
Raise brand profile/ customer awareness through advertising and connections to retailers & local brands Increase product range Explore and expand designs
Threats Time required penetrating market of established clothes boutique Competition from other leaders in market
Market saturation Economic recession