The blue tradition!
SUBMITTED TO: Ms. AYESHA AMAN
SUBMITTED BY: MARINA MALIK
TABLE OF CONTENTS
1.0 EXECUTIVE SUMMARY3
2.0 COMPANY SUMMARY5
2.1 Start-up Summary8
4.0 MARKET ANALYSIS SUMMARY11
Table: Market Analysis13
5.0 STRATEGY AND IMPLEMENTATION SUMMARY16
5.1 Sales Forecast22
Table: Sales Forecast22
7.0 Financial Plan25
7.1 Start-up Funding25
Table: Start-up Funding26
7.2 Projected Profit and Loss26
Table: Profit and Loss27
1.0 EXECUTIVE SUMMARY
Pakistan has a very rich culture of handicrafts that has evolved over the time. These handicrafts include hand woven clothes, kashi gari, hand painted pottery, rilli, etc. These products are liked world-wide. If we talk about the blue hand painted pottery of Pakistan these are eccentric and striking. These ones can amaze apparently the well heeled communities of the world.
Virsa offers these blue hand painted pottery including vases, tiles, key chains, plates, frames, etc from Pakistan to people in Dubai. It is a solely owned business and the retail store is situated at a mall so that it will be exposed to people from different ethnicities at one place. The strength of Virsa lies within the product which is all hand painted and made out of special clay which is available in Hala, Multan and Bahawalpur. These products would be directly purchased from these potters and then shipped to Dubai with special care. The total expenses required are 950,000 where as total assets are 950,000.
The market of Dubai has good purchasing power since their disposable income is higher. The spending of people is greater. Besides that, retail sales of supermarkets and hypermarkets in the GCC are estimated to expand at a CAGR of 10.7% between 2010 and 2015, thus outpacing the broader retail industry. Moreover, the market growth of house wares worldwide is expected to jump to a yearly growth rate of almost 5% between 2010 and 2015. This provides a room for the success of Virsa.
Virsa has no direct competition since there is no other store in Dubai offering blue hand painted pottery but Virsa is expected to face competition from the renowned brands and stores offering crockery. The major segment of the market in Dubai is expatriates and the target market includes mostly upper class and upper middle class. The products at Virsa would range from AED 200 to AED 2500. Targeting is done on the basis of product differentiation and market differentiation basically. Virsa focuses on creating points of difference as their positioning strategy in the minds of its target customers.
Virsa will be advertised through print ad (magazines), flyers, social media marketing, internet ads, e-mails and word of mouth. Virsa would also employ different strategies to increase sales, customer and employee satisfaction, involvement and promotions like special offers to corporate customers, gift wrapping, souvenirs, special packaging for tourists to minimize the chances of breakage and damage, gift vouchers, etc. In future, Virsa would target architects and interior designers.
Virsa requires a start-up capital of AED 1,900,000. The expected sales in the first year are AED 500,000. Sales are expected to increase by 1.5% each year with gross profit margin of 70% and profit margin of 10% on an average in the first three years.
2.0 COMPANY SUMMARY
Virsa is a retail store carrying blue hand painted pottery from Pakistan made with red clay (mostly). It is solely owned business which is doing operations in Dubai. The reasons for choosing Dubai for doing business include: * It is an important Arab country.
* It is a place where people belonging to different ethnicities come together who have interest in different cultures, arts and would like to try something new and different. * These are the people who have...