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Entrepreneurship
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Project starting a new product
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/6/2014
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Submitted to:
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Mr. Arsalan Sarwer
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Submitted by:
Ussama Wahab (11013454-031)
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Muqeet ul Ghazanfar (11013454-033)
M Ali (11013454-002)
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Arslan Aslam (11013454-005)
Farhan Ishfaq (11013454-041)
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B.COM (Hons) 6 Smester
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Table of Contents
TABLE OF CONTENTS...............................................................................................................................2

Social Judiciary and political freedom in

Pakistan........................................................3
INTRODUCTION:.........................................................................................................................................3
DESCRIPTION OF BUSINESS:..................................................................................................................3
Financing:....................................................................................................................................................3
EXECUTIVE SUMMARY:...........................................................................................................................3
Mission:.......................................................................................................................................................3
Slogan:.........................................................................................................................................................3
Vision:..........................................................................................................................................................3
Objectives:...................................................................................................................................................3
Keys to Success:..........................................................................................................................................3
Company Highlights:...................................................................................................................................3
INDUSTRY ANALYSIS:................................................................................................................................5
Target Market:..............................................................................................................................................6
Competition:................................................................................................................................................6
DESCRIPTION OF VENTURE:..................................................................................................................6
Product:........................................................................................................................................................6
Size of operation:.........................................................................................................................................7
Office equipment:........................................................................................................................................7
PRODUCTION PLAN:..................................................................................................................................8
Ingredients..............................................................................................................................................8
STAGES OF PRODUCTION PROCESS:..................................................................................................8
OPERATIONAL PLAN:................................................................................................................................9
MARKETING PLAN:.................................................................................................................................10
Product:......................................................................................................................................................10
Place...........................................................................................................................................................11
Main Suppliers......................................................................................................................................11
Marketing Distribution Channel...........................................................................................................11
Price:..........................................................................................................................................................11
Discounts, Allowances Offered.............................................................................................................12
Promotion:.................................................................................................................................................12
Communication Channels....................................................................................................................12
ORGANIZATIONAL PLAN:......................................................................................................................12
Hierarchal Structure:..................................................................................................................................13
FINANCIAL PLAN:....................................................................................................................................15
Break even Analysis:.................................................................................................................................16
APPENDIX:..................................................................................................................................................18
Market Research:.......................................................................................................................................18

SocialJudiciary and political freedom in Pakistan

Due to an independent country and democracy Pakistan is good country for doing a business. We
are going to produce and environment friendly product. Due to an Islamic country there is great
restriction over those products which are made by those ingredients that are prohibited in Islam,
due to this is a benefit for our product, because being a Muslim we will not produce such kind of
product which is band according to the sayings of Allah and hazrat Mohammed (saw) and most
of the population of Pakistan is Muslim thats why they will pay a great attention with positive
positioning to our product.It is fact that our judiciary system is very weak over
competitor can resist us by using law as they want to use it. But some honest
politicians at division and province level are the backbone of our company
which can defend us.

Introduction:
The High-Tech Plastics is a new firm going to start its operation in Gujrat. It will start with an
disposeable Razor product with the name Shaheen Razor. High-Tech will be a partnership
firm. The names of partners are given below. The firm is going to start its operations in a limited
geographical level. The companys growth policy is to fulfill the customers need with quality
product to grow.

Co-owners:

Ussama Wahab.

Muqeet ul Ghazanfar.

Muhammad Ali.

Arslan Aslam.

Farhan Ishfaq

Description of Business:
This business provides unique disposeable razor without any harmful dieses like AIDS or
Hapatitus. We provide hygenic disposeable razor with high quality and affordable price.

Financing:
Initial financing is PKR 7500,000. This finance will cover office exp, marketing exp, plant and
office rent.

This report is confidential and is the property of co-owners listed above. It is intended for use
only by the persons to whom it is transmitted, and any reproduction or divulgence of any of its
consent is prohibited.

Mission:
Our mission is to serve people with hygenic disposeable razor

Slogan:
the best a man can get

Vision:
Our vision is to capture Pakistan market by providing quality hygenic disposeable Razor at low
price in order to keep people away from AIDS & Hapatitus.

Objectives:

Maintain positive, strong growth each year not with standing seasonal sales patterns.

Achieve a comprehensive output in market penetration.

Decrease customer dissatisfaction simultaneously.

A double to triple digit growth for the first five years

Increase the profit margin by adequate percentage each quarter through efficiency and
economy of scale.

Maintain a significant research and development and advertisement budget to enhance

future product developments.

Keys to Success:
The keys to success are designing and producing such type of products that meet market demand.
In addition, our Company must ensure total customer satisfaction. If these keys to success are
achieved, it will become a profitable, sustainable company specifically which will produce long
lasting results as well.

Company Highlights:
The firm is going to start the operation to fulfill the need of the market segment that still has not
been fulfilling properly. The market segment which is known as the Razor is our focus. The
4

people today have too much busy life so they usually go to the barber shop for shaving. They did
not give attention that the barber is changing the blade or not, which is not healthy. The used
blades can get you disesses like Skin disease AIDS & Hapatitus.
There are some products already exist in the market to take advantage of that segment of market.
But the fact is that the competition is not so stiff in this segment. Another fact is that the products
which already exist in the market have a high rate and not safe mostly.
The fundamentals of our business will be to fulfill the need of the people to remain safe with
our world class product at an affordable price. We take our customer as our first priority while
taking any decision.
Our target market will be the person who have bread or body hair. The hygenic disposeable blade
will help them safe from the swear diseases like AIDS etc. Today all the world is trying to be
safe from these diseases. We will specially make our marketing efforts around Teenagers, Adults,
and also Late 50s.
The owners are the partners in the firm who dont have any intention to go in the public. The
names and share of the partners are mention in the operational. The capital can be raise from the
banks as well if necessary at any time.
The industry has a very bright future as everyone expecting from the trends prevailing in the
market. The Razor blade demand is rising as compared to the other shaving accseories available
in the market. The people are coming more and more towards the healthines not only to get their
selves safe from the swaer diseases. As the share of industry is rising as the time passes on so to
launch a business in such an environment where on one side the industry share of total market is
increasing and on other side not much competitors are available in that segment looks like a very
vise decision.
The one weakness which we have is that we are new entrants in the industry as well as well we
do not have the as much financial resources as the other competitors have. But the positive point
is that we can still successfully compete with competitors due to our strategy. The one weakness
that we have few financial resources is overcome by our strategy to start with a small
geographical region Gujrat. The advantage which we have over the competitors is that all the
partners belong to the same geographical region so they are well familiar with the target
population of the area. No matter that financial resources are few but the extensive marketing
strategy can be launched because of the small geographical area. The close knitted connections
of the partners in area and quality product at affordable price can win a leaders place in that area
for our product.
To fulfill this need and want of people we are launching our product with the name Shaheen
Razor in the market. As we want to see the response of the public towards our product before
launch it on a vast level, so we are launching it in the regional area of Gujrat in initial stages.
5

Industry analysis:
The industry analysis for the disposeable Razor concluded with following key points for the
Shaving.

Razor has cultural effects in it also. It will be produced domestically and will
have competitive edge against the other imported Razors like low cost etc.
Moreover the company can take the advantage of Be Pakistani & Buy
Pakistani also. Disposeable Razor can be customized according to the varying
needs of the culture which may take place from time to time.

Technological changes are kept in mind in developing the idea of this particular
product. Initially existing technology will be used in production and later on if
there is change in the technology then new technology will be used in for long run
after proper pre-testing.

At present there are not so much legal concerns about this business. And being a
shaving item there is no as such restriction imposed by the Govt. Because all the
ingridents used in this are safe and hygenic.

There are many other razors available in the market. But our focus is on the health
of the consumers. More people will replace their unhealthy Razors by something
'healthier' disposeable hygenic razor.

Company is forming its own market with the unique concept of providing a hygenic
Disposeable Razors, without the effect of any harmful Diseases.

There is increase in the sales of Razors in the market over the past few years. The
sales of the Razors have incresed in passing years. So the growth rate of the
industry is good.

No new firm has entered in the business since last five years or so.

The sales of our competitors are steady from the past years.

Our customers belong to the different social classes i.e. middle class, upper class,
and so on.

No new product introduced by the competitors since last years. Distribution

channel not much efficient.

Target Market:

Teenagers

Adults.

Gamers.

Sports persons.

Also Late 50s.

Mostly every male

Target Market of our Disposeable Razor are mainly targeted towards those who need some sort
of shaving. Now everyone is super stitious about their health. They have not time to shave them
by selves. They go to barber shop, so we are providing superhealthy, hygenic disposeable Razor.
Which can be seen if used.

Competition:
Company is forming its own market with the unique concept of providing Razors which are
disposeable and cant be re-used without the effect of any harmful Diseases.
There are several other competitors who are providing Razors which are not disposeable they can
be re-used but we are specially focusing on healthy Razors which are disposeable.

Razors
Shaheen Razors
Treat
7 o clock

Price
Rs.15
Rs.25
Rs.30

Description of Venture:
This section will provide detail our product, size of our operation, office equipment, and
background of the entrepreneur

Product:
Our product is save for those people who are worried about health.
7

This razors will keep them save and will give protection to their body.

This razors will have freshness, save from diseases and low price as compare to the existing
razors available in market.

Logo:

Size of operation:
We are conducting our operations in Gujrat city. We are lunching our razora in main cities like in
Islamabad,Lahore,Karachi,Sialkot,Gujranwala,Gujrat etc. This will be available in almost all
shops.

Office equipment:
We have purchased well office equipment e.g. chairs, tables drink stands and other necessary
equipment tools.

Production Plan:

METHOD USED TO ESTABLISH THE DEGREE OF PURITY.

The samples of the product have been analyzed from the ISO 9001.

STAGES OF PRODUCTION PROCESS:

1. Molde
The first step is to molded the the blades and the fit the blade in it.
2. Lock
The second step is to make lock on the blade for the protection.
3. sterlizing
The next step is to sterlizing to save the product from the diseases.
4. packaging
The next step is to packaging the product .

Operational plan:
Operational plan of the product includes inventory, shipping, storage, inventory control
procedures, and customer services.

Just in time inventory system will be used in case of our product. It will reduce
the storing cost also which will give us competitive edge against our customers.
There will be no of suppliers of raw material to avoid any kind of problem in
future.

All manufacturing operations will take place in own factory. For this purpose
machinery needed has already been installed.

Outward suppliers will pay the shipping charges for the finished goods. In case of
bulk purchase company will pay 30% charges. Purchase of 50,000 units in a
month is the limit for the purpose.

Experienced workers will be hired from other industries as part time workers at a
cost of Rs. 300 per day which will train our employees.

Finished products of the razor will be stored in company rented building which
has the capacity to store 100,000 units in it. Rent of the building is Rs.10,000 per
month.

We will maintain the

finished goods inventory of 30,000 units at any time

(including factory).

A survey will be conducted after every six months periods including finding out
the market trends and consumer demands about the product. Later on product can
be changed according to the needs.

Marketing plan:
Product:
. The products which are used to make a hygenic disposeable razor are tlastic,alominium
and blades.

Company Name

HIGH-TECH RAZORS

Brand Name

shaheen razors

Packaging

Box packing, aluminum strip

Capacity/can

50 per box, 10 per strip

Tray

24 x 50

Disposable Pallet 60 trays

Pallet weight

115kg

Pallet dimension

100x120x?150cm

Transportation

Can be organized if needed.

Payment

Bank transfer or cash in hand.

Packaging:
10

Designing and Packaging of many razor companies are more exclusive in their
marketing efforts because they gear their products and advertising to a very specialized
group. These groups include gamers,Teenagers,adults,sportsman and also late50s.

You can see the effects of this emphasis on such a target market because it is seen in the
advertising campaigns of razors.

Place
The High-Tech razors focuses on the big and high growth market shared cities of Pakistan like
Karachi, Lahore, Islamabad and Multan. High-Tech razors is also focusing on small cities so that
their product will be available even in the small shop of rural area.
Main Suppliers
Different suppliers in barber sector in Gujratsialkot etc.

Marketing Distribution Channel

High-Tech razors used direct and indirect marketing distribution channel in which they sale
directly to the customers by online sale and in indirect by retailers.Retailers buy the product and
sell that product directly to the final consumer for their personal and non business.
Some of major store retailers are:

Super markets

Departmental store

Price:
Pricing wise, we offer a high quality and fashionable product at a lower price. It allows us to
position ourselves as one of the best quality/price balanced brands.
This provides our partners an opportunity to sell a high quality product, while increasing their
margins and offering higher profits to their re-sellers.

Purchase price of retailer of 1 razor is Rs.12

Discounts, Allowances Offered

In the competition with the other razors high-tech razor tries to gain market share with giving
razors with reduce prices and best quality.

11

Promotion:
We will promote our product by using different communication channel.
Communication Channels

T.V campaigns (through Cable)

Bill boards

Local Newspapers

Advertising Campaigns

Organizational Plan:
The high-tech razors Company will be a partnership firm. The partnership will lie between the
founders of the company. Partnership will be according to their share of capital invested in the
firm. Profit will be distributed between them as per their percentage share in the firm. The every
decision will be taken with the consensus and majority of votes will be required to take the
decision. On every important document the signature of the at least 2 members should be there.
This will also imply on the financial side of the firm. Partners and their contribution to capital is
as follow

Name of Partners

Contribution

Usama wahab

45%

Muqeet-ul-Ghazanfar.

45%

Muhammad ali

5%

Arslan Aslam.

2.5%

Farhan Ishfaq

2.5%

Hierarchal Structure:
The hierarchal structure of the high-tech razors Company is as follow:
Board of Directors:
12

Partners of Firm

Chief Executive Officer:

KanwalWaris.

Chief Financial Officer:

muhammad Ali .

Marketing Manager:

Ali Raza

HR Manager:

Salman Akber.

Production Manager:

Muhammad Nadeem.

Operational Manager:

Aftab Ahmed

Break even Analysis:

We are determining the break-even point graphically.

The horizontal axis showing the no of unit sold and the vertical axis showing for sales revenue
and costs. The sales line starts at the origin ends at the point satisfying expected sales.
The fixed cost line runs parallel to the horizontal axis meets the vertical axis at a point which
represents a total fixed cost.
The total cost line starts where the fixed cost line meets the vertical axis ends at the point which
represents anticipated sales on the horizontal axis and total cost of the anticipated sales at the
vertical axis.

Variable Cost per unit:

Fixed Cost:
Expected Unit Sales:
Break even Volume:

8
2500000.
180,500
fixed cost / price variable cost

18,0500 / 15 8 = 25785.714

13

Appendix:

The contract of lease of land and building.

The lease contract of the machinery.

The partnership contract between the partners of the firm.

The agreement with suppliers.

Rental contract with the logistic facility provider.

Market Research:
Among college,universities and in offices any person want to look nice and also want to save
from the diseases just like AID,s and skin diseases.

Conclusion:
The sum up of whole discussion net-shell we conclude that, it is true that we have a tough
competition with many foreign and domestic companies. But we will generate revenue by the
differentiation of product. It will take some time to introduce our product nation-wide but due to
a local product we can be leader of of razors market.

14