2019

RED MAPLE (PLANTS &

SEEDS)

PROJECT OF :-
ENTREPRENEURSHIP
 Red Maple Nov-2019

Lahore Leads University

Department of Management Science

Title of Project: Red Maple

BBA 7
Submission Date: 28-Nov-2019
Submitted To: Sir Khaleel-Ur-Rehman
Submitted By:
Ammar Yasir (F16-1310)
Qurat ul ain (F16-1245)
Muhammad Saad Tariq (F16-1036)
Robinson Javed (F16-1006)
Kashif Sohail (F16-1310)
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Table of Content
Page
Sr. No. Content
No.
1. EXECUTIVE SUMMARY
2. BUSINESS DESCRIPTION
 Vision, Mission & Goals
 Form of business
 Management structure
3. Industry and Market Analysis
a) Industry Analysis
 Market size
 Porter’s Five Forces Model
b) Market Analysis
SWOT Analysis
 Know Your Customers
 Know your product
 Know your competitors
4. ENTREPRENEURIAL MARKETING
c) Marketing Mix/ Marketing Strategies and Sales
 Market Segmentation & Targeting Strategy
 Unique Value Proposition (UVP) , Differentiation and
positioning
 The Marketing Mix/4PS
5. FINANCIAL PLAN
a) Startup capital
b) Income Statement and Balance Sheet
c) Break Even Analysis
d) Ratio Analysis
e) Capital Budgeting Technique
6. Appendix
 Red Maple Nov-2019

Acknowledgement:-
We are very thankful to “ALMIGHTY ALLAH” the most beneficent, the most
merciful who has given us the strength to complete this task and with the deepest
gratitude and warmest affection. We are highly grateful to our course instructor Sir
Khalil-ur-Rehman who taught us with great affection and whose supervision
enabled us to complete our project. We hope this project will fulfill the
requirements of our teacher. Last but not the least we convey my credit and
commendation to my institute, Lahore Leads University, Management Faculty,
without whose support and guidance it would be difficult for us to achieve this task
successfully

Declaration:-
I hereby declare that this report is original work, prepared by students of BBA7
Ammar Yasir, Qurat-ul-ain, Kashif Sohail , Robbinson javed and Saad Tariq and
Submitted to Sir Khalil-ur-Rehman
 Red Maple Nov-2019

Executive Summary:-
Red Maple is the business of selling plants and seeds, online. We are providing
every kind of seeds and plants to the customers regarding to their choice and
demand. In this document we have written vision, mission and goals of this
business. This business Description involves Form of Business, and then you will
see management structure and hierarchy of the business. We also write industry
analysis and market analysis. Market analysis includes Strength, Weaknesses,
Opportunities and Threats. We discussed porter’s five forces model and 4 p’s of
business. These 4p’s includes Product, Price, Place and Promotion. At the end we
draw financial plan of the business, monthly and yearly. Financial Plan includes
Operating cost and Expense, Income statement, Balance sheet, and Break-even-
point. The uniqueness of this business is that we are providing some services and
free home delivery to our customers.

Business Description:-
a) Vision, Mission & Goals:-
Our vision is to be the number one plants selling company in Pakistan, by 2025.
Our mission is to increase our sales by 20% in the next year.
Goals:-

We have a plane We want to raise

to start selling our capital by
hybrid seeds 10% within 6
within 1 year. months.
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b) Form of Business:-
Our form of business is a Partnership business and our business is
merchandising business.

We are five members, till now. This business is about buying plants and seeds for
the purpose of reselling.

Trends:-
In Pakistan this plant and nursery industry is very old. Till 2000s people were
growing plants and trees which were easily available but after that people start
buying plants and trees of different and unique breeds from the nurseries. Now it is
a trend to grow that plants and trees which are very rare and different. Now there
are some nurseries which are proving plants online. As we discovered that there is
not that much work done on online plants selling and service providing, we started
a business to provide plants at the door step and to provide services by just one call
or text.

c) Management Structure:-
 We have a flat organizational structure.
 CEO
 Manager marketing
 Manager finance
 Manager customer services
 Manager operations
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Designation Names JOB DESCRIPTION

Providing directions to the

business.
CEO Ammar yasir Major investment and strategic
decisions.
Managing overall operations.

To direct the advertising

activities and supervise as
Advertising well. Work with other team
Kashif Sohal members to establish project
manager
goals, and monitor, evaluate
the project’s status

Preparing accounts.
Monitoring all financial
Finance manager Robinson Javed transactions.
Pointing out all elements that
are causing too much cost.

To do all the actions that can

increase our sales of the
Sales promotion product. To develop a
Muhammmad saad
manager favorable customer experience
with the product.

To manage all the

advertisement related to a
product and services on
Social media different social media
marketing & Qurat-ul-ain platforms.& To develop the
Graphic Designer overall layout and design for
the project, service and
product.
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 Industry and Market Analysis:-

Online seeds and plants business is very huge and growing day by day. People in
their homes or offices want different plants and flowers. In Lahore there are 236
housing societies and in every housing society people are decorating their exterior
homes by different plants and trees, else people having big Farm houses little far
from their houses and also want the trees and flowers for their farm houses, So
there is great potential in the market. There are many big nurseries currently
working in Lahore, Faizan nursery is one of the leading nurseries in Lahore. Aziz
nursery is one of the biggest online nurseries in Lahore. No one is providing free
services or knowledge about plants and seeds. It’ll be key point for us and if we
provide people with free services and knowledge then there is great potential in the
current market.

 Industry Analysis:-

Porter’s Five Forces Model:-

There are no barriers to new entrants, so anyone can enter in the market and
there are a lot of nurseries in the market at this time.
Threat of substitutes: this threat is high because if you are not selling plants and
seeds with good quality or low cost then the customers will switch to other sellers.

Bargaining power of customers:- bargaining power of customers is very high

because they have many alternatives.

Bargaining power of suppliers:- bargaining power of suppliers is low because

there are many substitutes.

Competitive rivalry:- there are hundreds of competitors in the market those are
selling plants and seeds. Online selling competition is also very high but there are
 Red Maple Nov-2019

very low numbers of nurseries which are providing services of landscaping and
exterior designing.

FORCES LOW MEDIUM HIGH

Threat of new 
entrants
Threat of 
Substitute
Bargaining power 
of customer
Bargaining Power 
of Supplier
Competitive 
rivalry

Market Analysis:
 SWOT Analysis
 Strength: we are providing free landscaping services and knowledge.
Online selling of plants is present but don’t have any different or unique
component.
 Weakness: there are many nurseries in Lahore and they are proving very
rare and nearly every kind of plants and seeds. Some are providing
hybrid seeds.
 Opportunity: there is great potential in the market. If we are able to sell
online plants and seeds, with information and services on landscaping
 Red Maple Nov-2019

then we can make good profits. Awareness about plantation and

landscaping is increasing day by day.
 Threats: there are hundreds of nurseries in Lahore, which are selling
very rare plants and seeds. Online nurseries are also growing in numbers.

Strength Weakness

We are providing There are many

those services and nurseries but they have
knowledge rarely every kind of
plants.

Opportunities Threats

Information and There are many other

Services for all the nurseries which are
customers. selling plants and
seeds.

 Know Your Customers:-

Our customers are from all over Lahore but we are trying to focus on some specific
societies.

Target segments:-

 Lahore (specially societies)

 People with passion for landscaping.
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 People who love flowers.

 Demographic: Religion (all), age (all), Gender(any)

Social status: Middle class, Uper middle class, Uper class, Alied class.

 Products:-
Our products are plants and seeds.

We are also providing services like, landscaping.

We are also providing some rare and unique plants:

 Bird of paradise
 Cassias
 Blue vine
 Competitive analysis:-
We are new in the market and there are a lot of competitors in the market. Faizan
nursery and Aziz nursery are major competitors because they are providing
online services also.

Entrepreneurial Marketing:-

 Marketing Mix Marketing Strategies & Sales

 Market Segmentation & Targeting Strategy
We are using undifferentiated marketing. We are targeting everyone in Lahore.
Currently we are only targeting Lahore because we are at our initial stage but later
we want to target whole Pakistan. We are providing every kind of seeds and Plants
which People like and according to their Environment.
 Red Maple Nov-2019

Mostly we are focusing to capture societies at domestic and commercial level, and
also want to take contracts to grow fast. People in domestic areas, like Plants and
want to get information about new Plants and Seeds.

 Unique Value Proposition (UVP) , Differentiation &

Positioning:-

We are selling plants and seeds at online market .But our UVP is to provide
information and advices for the landscaping composition.

We are telling the efficiency, Hardness, Softness and PH level of the soil and
water also.

If the composition of soil and water is disturbed due to some environmental

changes then, we will add the suitable nutrients in the soil to stable the quality of
soil and water.

The optimum PH range is from 5.5 to 7.0, but some plants will grow in more acid
soil or may require a more alkaline level. The pH is not an indication of fertility,
but it does affect the availability of fertilizer nutrients.

 The Marketing Mix/4PS:-

Product/Service Strategy:

We are providing products, which are plants and seeds. We are providing them at
reasonable price (as per market). We are providing services which include advices
and consultancy on landscaping. We have some Gardner, who helps customers in
Landscaping and give them knowledge about Seeds.
 Red Maple Nov-2019

 Channels:

We are using different mediums like Social media (Facebook, Instagram, and
Twitter)

Other Source of Selling is Online selling sites though (OLX)

 Pricing Strategy

As we know that there are a lot of competitors and all are competing for capturing
the market. We are using competitive pricing. We are charging prices according to
the market. We cannot charge high or low price because we are at our initial stage
and we don’t have enough investment.

We are creating price of selling plants according to following figures.

 Plant 60%
 Consultancy 10%
 Delivery 30%

4 Piece of Marketing Mix:-

Product Price

We are
We are
providing them
Providing
plants with
Product Plants
reasonable
and Seeds.
Price.
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Place Promotion

We are providing We advertise our

services which product through
include advices Facebook and
and consultancy Twitter accounts.
on landscaping.

Placing/Distribution Strategy:-
We are distributing our products all over Lahore and people just order plants and
seeds from our Facebook pages and other online sites like OLX.

Nurseries Red Maple Customers

 We will buy required or demanded flowers from different nurseries and then
we will deliver these demanded flowers to the customers.
 We are using Direct Distribution, as we are delivering the demanded
products directly.
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 Advertising/Promotional Strategy:-
We will reach audience through our social media pages and other online sites like
OLX. For the people who are not using Facebook or other social media
applications we are distributing brochures. We enhance our selling through
Advertising on Social Media. People love to gain knowledge about different seeds
and Plants. We also give after sale service to our Customers for better result. Our
Gardner provide them full information about planting different plants. Social
Media is one of the Power full tool for Advertising, we use it and enhance our
Productivity.
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Branding:-

Business
Red Maple
Name:

Business Logo

Business Motto Seeds of Love

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Financial Plan:-
a) Operating Cost and Expenses
Operating Cost and Expenses

Sr. Per Month Annual

Description
No Cost (Rs.) Cost (Rs.)
1. Internet charges 3000 36000
2. Plants and seeds 40000 480000
3. Delivery expenses 14000 168000
4. Other expenses 10000 120000
67000 804000

a) Startup Financing:-
Sr. No Description Amount (Rs.)
Total capital expenses ( bike, 75000)( 175000
1.
equipment (100,000)

2. 1 month operating expense 67000

Total Startup Financing 242000

b) Revenue Generation
Revenue = Price of Product * No. of Units Sold
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c) Income Statement
Projected Income Statement for 5 Years
Description Year 1 Year 2 Year 3 Year4 Year5
(Rs.) (Rs.) (Rs.) (Rs.) (Rs.)
Revenue 120000 144000 172800 207360 248832
0 0 0 0 0
Less: Operating Cost and Expenses
Operating Expenses 804000 933600 108912 127574 149968
0 4 8
Depreciation Expenses 35000 35000 35000 35000 35000
Total Expenses 839000 968600 112412 131074 153468
0 4 8
Operating Income/Loss 361000 471400 603880 762856 953632
Less Tax (%) 0 0 0 0 0
Net Income After Tax 361000 471400 603880 762856 953632

d) Balance Sheet
Assets Amount Liabilities & Equity Amount
(Rs.) (Rs.)
Tools and equipment 100000 liability 0
Bike 75000 equity 175000

Total Assets 175000 Total Liabilities & 175000

Equity
 Red Maple Nov-2019

e) Break Even Analysis

Break Even = 839000 = 1678 plants/year

500
f) Ratio Analysis
Sr. Description Year 1 Year 2 Year 3 Year 4 Year 5
No.
1 Net Profit 361000 471400 603880 762856 953632
2 Return on Investment 43% 48.6% 53.7% 58% 62%
3 Return on Sale 30% 32.7% 35% 36.8% 38.3%

g) Capital Budgeting Technique

Payback Period = 8 months.