Business Plan

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  • Topic: Poverty, Poverty threshold, Paper
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  • Published : March 11, 2013
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Paper Furniture|
Assessment 1|
Dhathri Bhupathi,Vani,Vaarshik,Pranav|
1/8/2013

Contents

1-INTRODUCTION………………………………….2

2-PRICE OF THE PRODUCTS……………………..3-4

3-MARKET…………………………………………….6

4-VIABILITY
4.1-FINANCIAL VIABILITY…………………………9
4.2-TECHNICAL VIABILITY…………………………10

5-SUMMARY…………………………………………….11

Paper furniture

1.Introduction
We have chosen this particular area to explore and develop a new market, basically for 2 main reasons. 1. Global warming: it has become one of the leading concerns for our world today and one of the major factors contributing to its rapid growth is deforestation. Thus saving a portion of trees which are being cut for making furniture may lead to lowering of the deforestation rate and at the same time paper waste can be re-used. 2. Poverty in India: poverty is widespread, with the nation estimated to have a third of the world's poor. In 2010, World Bank stated, 32.7% of the total Indian people fall below the international poverty line of US$1.25 per day (PPP) while 68.7% live on less than US$ 2 per day. In order to help improve the life style of these people who fall below the poverty line. Customer

In this project we are targeting the rural sector of India as it is the sector which stores many potential buyers for our products. The rural sector has less disposable income earners, the people are price sensitive hence they would only buy the products which are priced reasonably and have long life. In the recent years where the world has been hit with inflation the rural sector is one of the sector which has been badly affected and thus demands for products that are low priced and which could fulfil their needs up to an extent. The following list shows the priority list of the rural sector regarding a product * Affordable price

* Durability
* Fulfil their needs
* Easily available

After listing the needs of the rural sector we have come up with the idea of paper furniture as it is beneficial in the following ways 1. we can re-use the used paper
2. save trees
3. save the cost of producing furniture
4. create furniture which is cheap and which could last long 5. every Indian citizen can afford this furniture
6. it is eco-friendly

The consumers in this sector are highly price sensitive, thus we have made different products which range from Rs10 to Rs 2000 being the maximum. The following are the products along with the price range.

2.Price of products

3. Market
The market for paper furniture has to be developed as paper furniture currently does not have any market which can be considered. Paper furniture are made only in few houses in the rural areas and they are produced only for personal use. Thus we have identified this gap in the market and considered it as an opportunity for creating a new market for a new product i.e paper furniture which is restricted within the four walls of a house. We have estimated the market for this unique products will raise once the product is in the market as we produce paper related products for different purposes and we have planned on meeting all the requirements of the rural people with our products and we assure them satisfaction on their expenditure for the products. About 70% of people live in the rural areas of India thus catering to them not only satisfies them and increases their standard of living but also there will be an economic growth. In order to understand our market for paper furniture we conducted a survey. The survey covered most of the highly populated rural areas. We conducted the survey by grouping 15 to 20 people in each group, creating around 500 groups( around 10,000 people) across Indian villages. After grouping, we asked the following questions to them in order to get an overall opinion on paper furniture.

S.No| Questions|
1| How much do you’ll spend on wooden furniture and decorations at your home?| 2| What do you’ll do with...
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