Download - Butterstick Alisha
-
8/13/2019 Butterstick Alisha
1/22
ENTREPRENEURSHIP
The Butterstick
SUBMITTED BY :- Alisha Khurana
-
8/13/2019 Butterstick Alisha
2/22
ABOUT
The Butterstick INNOVATIVE IDEA
CUSTOMER
SATISFACTION in
terms of qualityand health
Target
Upper middle
class and high
class
Appeals to todays
generation, timesaving
Attractive
-
8/13/2019 Butterstick Alisha
3/22
Butterstick
The Butter Stick , may actually break the art form's rules.
a conventional stationery glue stick, but with deliciousdairy inside perfect for lathering up a piece of bread ortoast without dirtying a knife.
Easy, ergonomic dispensing also allows for total buttercoverage.
-
8/13/2019 Butterstick Alisha
4/22
INDUSTRY ANALYSIS
-
8/13/2019 Butterstick Alisha
5/22
CULTURE
Health conscious
Time saving
RAWMATERIAL
High quality butter
Packaging material plastic
LEGAL Taxes, state laws
COMPETITION
No direct competition in the segment
New concept in the area
TECHNOLOGY
New and advanced technology
INDUSTRY
DEMAND
New product
Niche market available
-
8/13/2019 Butterstick Alisha
6/22
ORGANIZATIONAL PLAN
-
8/13/2019 Butterstick Alisha
7/22
MANAGEMENT
OWNER AND STAFF ( MANUFACTURING TEAM )
LEGAL FORMSOF BUSINESS
SOLE PROPRIETORSHIP
STARTING COST DISCUSSED IN FINANCIAL PLAN
CONTINUITY
CONTINUED BY FAMILY
FUNDING
SELF FINANCED
-
8/13/2019 Butterstick Alisha
8/22
TRANSFERABILITY TO FAMILY
CAPITALREQUIREMENTS
SELF - FUNDING
MANAGEMENTCONTROL
OWNER HAS THE CONTROL
PROFIT/LOSS
PROFIT/LOSS BORNE BY OWNER
-
8/13/2019 Butterstick Alisha
9/22
MANAGEMENT TEAM
CEO Manager :1x30,000=Rs.30,000
Area Managers: 4 x Rs.30000
p.m=Rs.120000p.m PR Advisor: 1x Rs.15000 p.m= Rs.15000p.m
HR : 1x20,000=Rs.20,000
Staff:5x Rs.3000 p.m= RS.15000p.m
Total Salaries Paid: Rs. 2,00,000 p.m
-
8/13/2019 Butterstick Alisha
10/22
DESIGNING THE ORGANISATION
ORGANIZATIONAL STRUCTURE
CEO
ProductionManager
Area
ManagersPR Advisor Staff
-
8/13/2019 Butterstick Alisha
11/22
-
8/13/2019 Butterstick Alisha
12/22
Selection
The promoters are college going students who would be selectedthrough personal interviews. The area managers are people whohave been associated with this industry and hold a prior workexperience of at least a year. They have been located throughpersonal sources.
Institutes like National Dairy Research Institue ,Bengaluru.
Training: There will be orientation training and later down the line coaching
would happen on regular basis. Rest all the training would be onthe job. The idea would be to polish the learning skills of AreaManagers and develop the same for Promoters.
A Trainer would be hired for the same and would be called as andwhen needed.
For the induction, onetime payment that will be done to the trainerwould be Rs.(25,000) approx for a period of 3-4 days.
-
8/13/2019 Butterstick Alisha
13/22
MARKETING PLANMISSIONTo create a market for
a unique FMCG product andcreate niche potential customer
base in order to earn the edgeover other competitive productsdue to its easily utility and other
benefits
a) Target Group: Upper Middleclass and High class
b) Size: age no bar
c) Price: Rs.60-65 ( price may varyaccording to the choice of raw
material )
d) Distribution Channel : Rawmaterial sourcing , Packaging will
be inhouse
-
8/13/2019 Butterstick Alisha
14/22
MARKETING MIXPRODUCT
The Butter Stick , may actually break the art form's rules. This thing couldactually catch on. The Butter Stick is like a conventional stationery gluestick, but with delicious dairy inside perfect for lathering up a piece ofbread or toast without dirtying a knife. Easy, ergonomic dispensing alsoallows for total butter coverage.
PRICEPricingThe butterstick will be safely priced at
MRP: Rs.60
Mark-up: 20 percent
Margin: 40 percent
Original Price : Rs.35
PROMOTION-Print Media ,posters and social media like a facebook pageviral marketing.
PLACE-FMCG outlets in malls
-
8/13/2019 Butterstick Alisha
15/22
FINANCIAL PLAN
Expected Sales Volume: 6000 units per month(figure assumed)
Actual Production Required: 10000 units permonth (figure assumed)
Buffer Stock: 2500 units per month (figureassumed)
Price of one unit of candy=Rs.60-Rs.70
Average Price=Rs.65 Therefore, Expected Sales=Rs.65 x 6000
x12=Rs.46,80,000p.a
-
8/13/2019 Butterstick Alisha
16/22
Operating Budget
Fixed Expenses:
Rent (Warehouse , Location: Shahpurjat, New Delhi):
=Rs.20000 per month (200 sq ft.)=Rs.20000 x 12 =Rs.2,40,000 p.a b) Salaries=
Manager :1x30,000=Rs.30,000
Area Managers: 4 x Rs.30000 p.m=Rs.120000p.m
PR Advisor: 1x Rs.15000 p.m= Rs.15000p.m HR : 1x20,000=Rs.20,000
Staff:5x Rs.3000 p.m= RS.15000p.m
Total Salaries Paid: Rs. 2,00,000 p.m
c) Depreciation=Rs.70000 (machinery)@20%=Rs.14000 p.a
=Rs.50000 (furniture) @ 10%=Rs.5000 p.a
Total Fixed expenditure : Rs.4,59,000
-
8/13/2019 Butterstick Alisha
17/22
Variable Expenses
Promoters Commission ( Varies with Numbers sold ) @1%
Advertising
Social Networking (Facebook, Twitter ): Zero Cost
Pamphlets: A6 Pamphlet
105mm x 148mm (150 gsm gloss)
300 dpi (Hi Resolution)
2 colours (Double sided)
=5000 pamphlets=Rs.1385
Walking Hoardings (Outside FMCG stores) =10 x Rs.5000 p.m=Rs.50000 p.m
Total Advertising Cost= Rs.51385 (Variable) x12=Rs.616,620 p.a (approx)
Packaging: 5000 x Rs.0.25 x 12=Rs.3000 p.a
Raw Material Cost: butter Rs (10-15) + Rs0.2
Per unit cost
=5000 units p.m x 12 x Rs.12.5=Rs.7,50,000p.a (approx)
Bank Charges=Rs.300 x 12 =Rs.3600 p.a
Stationary & Printing=Rs.5000x 12 =Rs.60000 p.a
Distribution Cost
Electricity=1567 units xRs.6.7 per unit=Rs.10500 per month x 12=Rs.126000 p.a Tax @ 9%=Rs.132280
Total Variable cost : Rs.16,26,485
-
8/13/2019 Butterstick Alisha
18/22
Personal Vehicles for promotion and distribution:6x Rs.48000=Rs.288000
Machinery =Automatic Stacker
(2*Rs.10000)=Rs.20000 Plastic pacakaging (1000*Rs.50)
=Rs.50000
=Rs.70000
Furniture and Fixtures=Rs.50000
-
8/13/2019 Butterstick Alisha
19/22
-
8/13/2019 Butterstick Alisha
20/22
-
8/13/2019 Butterstick Alisha
21/22
-
8/13/2019 Butterstick Alisha
22/22
Thank You