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1. Overview Mission Statement Vision Statement 2. Problem/Opportunity of Problem Objectives Business Model ___________________________________________________4 ___________________________________________________4 ______ ____________________________________________4 ___________________________________________________5 ___________________________________________________5 ___________________________________________________7
Description of Business Model ___________________________________________________8 3. Solution and Economic Benefit 4. Industry and Target Market Porter Five Forces Model 5. Management Team Law Firm ___________________________________________________9 ___________________________________________________9 ______ ___________________________________________10 __________________________________________________16 __________________________________________________19
Accounting and Consultancy Firm_________________________________________________20 6. Competition and Marketing Strategy __________________________________________________21 Concept Testing Competitive Analysis Competitive Grid BCG Matrix SWOT Analysis PEST Analysis __________________________________________________21 __________________________________________________25 __________________________________________________26 __________________________________________________28 __________________________________________________29 __________________________________________________32
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Pricing Strategy Marketing Mix 8. Critical Risk Factor Risk Management Plan 9. Financials Forecasting Income Statement Cash Flow Statement Balance Sheet 10. Exit Strategy
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Acknowledgement
All the praises are for him Allah who is most Merciful and Beneficial. Who has bestowed us with enough knowledge, wisdom and all the senses that we were able to work on this project, set goals and objectives for this project. After Almighty Allah the person who further polished our senses, increased our knowledge corrected our mistakes and taught us with patience and motivated us to perform this project throughout the semester. So we specially thank our Professor Rasheed Khalid. Heartiest gratitude and thanks to our parents without their continuous encouragement, motivation, love and support this project wouldnt have been possible and also special thanks to our friends and seniors who helped us throughout the project. The sources of information include a thorough research on internet, books, a detailed survey of testing concept and various related data collected from key professionals.
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1. Overview
Al Jannah is providing all products for Hajj and Umrah. This is for the first time in Lahore that everything for Hajj and Umrah would be available under one roof thats the biggest competitive advantage of our business. Its a whole new concept and after taking all the problem people face regarding all the basic and necessary items for Hajj and Umrah. We will create a huge difference for our customers; our benefits would be our differentiation. Our complete Hajj and Umrah services before and after Hajj and Umrah would be key to success of our business. We are taking the initiative by tarrying this outlet, so we have two major competitors like dar us salam and al huda, our indirect competitors who provide all items for Hajj and Umrah like abbaya shops and ihram, towels, slippers, water bottle, umbrella dates and Aab-e-Zam Zam. All products are available in market, so it is quite challenging for us to attract our target market and educate them about our outlet but because there is no proper outlet one shop where all these things are available under one roof so it would be easy for us to communicate the benefits to our customers. We do believe that are business will grow by studying overall market condition there is need for this kind of outlet in Lahore and every year hundreds of people from Lahore and all over Punjab go for Hajj and Umrah, so our business seems to grow well and we will be successful to gain fair market share for our business. Initially from the economic point of view Pakistan is going through tough time but being Islamic country any economic conditions wont effect the Hajj and Umrah, so despite of all bad economic conditions are business is perfectly seems to grow. In future we are expecting to gain more and more market share every year with our new idea and we will be adding more and more value to customer every time and our management is efficient and they know how to make this business successful in future and take our outlet to introductory stage to growth stage successfully .
Mission Statement
Our mission is to cater the people who are going for Hajj and Umra and is in search for place from where they get the entire essential product for Hajj. We are intended to provide the main products like Ahram, abaya`s, slippers, water bottles, towels, umbrellas and other products under one roof and in the form of a customized box or bag. We also intended to provide dates and aab-e-zam zam to the people who return from hajj or Umrah and want to give it to their family and friends.
Vision Statement
To create a proper brand and expand the business all over Pakistan
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Objectives of Al-Jannah`
AL Jannah is whole new concept and we are just going to start our new business so our objectives are initially different from existing business some of our objectives The most important objective for next 6 months would be to educate and inform our target market about our products and benefits. As we are providing products to people for the best journey of their life so ethically our first objective is to provide the best quality. AL Jannah wants to create customer satisfaction by providing them best benefits and services we want our company to be customer oriented. We want to deliver to our target market best quality at most reasonable prices than market After initially sales we are planning to bundle together different products and make different product packages for our customer convinces. AL Jannah intent to sustain and improve the organizations competitive strength and long-term market position through creating customer value. In coming future with are innovations more and more value to customer we want to gain more market share. We want to attain customer satisfaction about dates and Ab-e-zam zam. After getting in to growth stage we want to open our outlet in other cities and expand our business. As we are the initiator for this kind of business so we want to gain Recognition as Market leader in Hajj and Umra products
JANNAH is providing the customer with various kinds of dates which are brought from saudia as well as the abe-zam-zam. This opportunity of providing all those things will be according to the demand and needs of customer as our business is providing them with customized and convenient package which they can change and get those things in their package which they want not which we are providing. We provide our customers with a facility that saves their time and effort for searching different kinds of things which are required for the comfortable journey. The target market of our business is hajj and umra people which are coming as well as which are going. The problem is big to some extent because many people want all those things for hajj and umra under one roof which is not available in Lahore areas. They have to search many markets for different things which are required for the journey. We will be serving our customers who are going to hajj as well as umra by giving them customized package means they can remodify the things which they need for their comfortable travel e.g. if a customer does not want abbaya which is not according to his/her needs or anything else or whether he/she wants something more attractive then he/she can choice any other abbaya which is not related to that package but he/she can add this thing to the package because AL-JANNAH is concerned with customer needs and wants. The people who come back from hajj and umra which is our target market mostly ran short of dates and abe-zam-zam because of some weight problem or the dates get damage because of the pressure on them of luggage. The water bottles are not properly closed or they get open by throwing the luggage which mostly happens at airport. Our basic aim will to serve those customers which get frustrated at that point what to do. Our target market will be those people who sometimes like Ajwa date as a source of tabarakh and those who kept dates of MAKKAH and MADINA in their homes.AL-JANNAH target is broad to some extent because they are targeting the womens which like to wear abbaya in their routine daily life.AL-JANNAH is a place where customers can satisfied their needs according to their desire.
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Forecast demand and Placeing orders to the Suppliers Obtain Supplies from Supplier On Customer Order Customized Packages are Made on the Spot Packages Delieverd to the End users
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Demographical Segmentation: Our target market includes demographical variable: Gender: male and female Age: 18-ownward Religion: Islam Psychographic Segmentation Social Class: upper and middle class Behavioral Segmentation Occasion: Religious occasion hajj (once in a year) and umra (throughout whole year but mostly in RAMZAN) Benefit: convenience and good quality, accessibility.
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Threat of Substitute
The price that consumers are willing to pay for a product depends in part of the availability of the substitute products. .As AL-JANNAH there is few substitutes available for dates and abe-zamzam then our business will be profitable as well as the industry. In contrast when a close substitute of a product exist industry profitability is suppressed because it is a common practice that consumers will get directed towards other if the price get too high.AL-JANNAH will try that their substitute should not easily available because if this happen then profitability of the business will decrease. The extent to which substitutes suppress the profitability of an industry depends on the propensity of the buyers to substitute between alternatives.AL-JANNAH is producing products with brand image so the threat of substitute will be low in our business.
as well as putting a barrier for new entrants. If new entrants are coming and something is not done to stop this, the competition in the industry will increase and gradually the average industry profitability will decrease but AL-JANNAH will be putting barriers to entry to increase the profitability of an industry. A barrier to entry is a condition that creates a disincentive for a new firm to enter in an industry which AL-JANNAH will do in order to secure the future.
Non-Traditional Barriers to Entry
Al-JANNAH will be putting non-traditional barriers for new entrants because it is very difficult for a new start up to use traditional barriers like economies of scale, product differentiation,, capital requirements, cost advantages independent size, access to distribution channels and government and legal barriers. Traditional barrier to entry is expensive so at the start you cannot use it because money is usually tight. New ventures as AL-JANNAH will be relying on nontraditional barrier to entry such as assembling world class management team, first mover advantage, passion of the management team and employees.
Strength of Good Management Team
AL-JANNAH will put together a world class management team; it will give a potential rise to the rivals pause in taking on the start up in its chosen industry. The strength of management team is that which no competitor can copy.
First-Mover Advantage
AL-JANNAH is providing the products with the brand image and totally a new concept within an existing industry, the name recognition that our business establishes create a formidable barrier to entry.AL-JANNAH has taken a first mover advantage over the other.
Inventing a New Approach To An Industry
AL-JANNAH is providing the customers with a new approach as well as a concept, these factors create a barrier to entry for potential imitators.
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In most industries, the major determinant of industry profitability is the level of competition among existing firms.AL-JANNAH rivalry scope will not too much broad but it will to some extent.
Degree of Difference Between Products
The degree to which product differs from one product to another affects industry rivalry. The products which AL-JANNAH is providing are not new but the thing which is new is one got all of them in single place they are rare in Lahore.AL-JANNAH is providing the product with brand image which no one is providing.
Al-JANNAH will have a threat that if the supplier is enhanced by the business of buyer and might enter in the buyer industry.
The power of buyer can be enhanced and he/she can become his own supplier which is a threat to AL-JANNAH but our buyers are diverse so this threat is minimized.
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Competitive forces Threat of substitute Threat of new entrant Rivalry among firms Bargaining power of supplier Bargaining power of customer
LOW
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5. Management Team
Job Description
Planning of the company i.e. company strategy, strategic plan, operational plan Developing relationship with the board of directors Involvement In Product development
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Director Finance
Job Title
The Job title of Anum Ijaz is Director Finance.
Job Description
Prepare and review all the budgets of the Company Reviewing all the financial statements and balance sheets Developing the projected statement of the company
Director Marketing
Job Title
The job title of Sana Akbar is Director Marketing
Job Description
Introducing the company and its products to the target customers Creation of brand image Develop effective marketing strategies Analyzing the markets including competitors and customers Establishing proper and effective distribution Channels
her degree program. She is doing specialization in marketing. She has an experience of participating in promotional activities of Nescafe. She has also started an internship in Nestle.
Job Description Hiring New Employees for all the company and forming a proper Hr Department for the
company
Establishing a proper system of activities for the newly hired employees Developing their Job descriptions and decide their salary package and other
compensation
Motivating the employee and develop a sense of loyalty to the company Pursue to make the Hr department as the strategic partner of the company Experience and Abilities
Saniya Mazher is doing BBA (honors) from University of Central Punjab. She is in 6 th semester. She has done an internship at Telenor and worked with the HR manager of the Company. She has as an ability to deal with people and possess emotional intelligence which is an important characteristic of any HR Professional.
Board of Advisors
Mr. Faraz Alvi He has done MBA (marketing) from fast. He also has an experience of teaching in fast. Now he is working as a Marketing manager at Angro foods. He will be helping us in making Marketing strategies, brand recognition strategies, targeting customers and influencing the customers and making them loyal to the brand.
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Mr. Shahid Latif He has done his ICMA from ICAP. He is amongst the board of directors of Soneri Bank. He will be guiding us about our financials, budgeting, making projected income statements, forecasting and designing financial strategies for our company. Mr. Saqib Shehzad He has done his MBA (HRM). He has an experience of working as an HR Manage at Mobilink. He will be guiding us about the right type of human resource we need. He will help us in making strategies in motivating the employees and making the employees loyal to the company and provide them job satisfaction. He will be helping us to create such an environment which is well suited for our employee so that their efficiency is improved and they perform well. Prof. Rasheed Khalid He has been teaching entrepreneur course at UCP for 6 years and has also involved in giving ideas and helped others in various developing entrepreneurial ventures. He has conducted and attended many seminars regarding entrepreneurial ventures. He also developed many business ideas and their business plans. His knowledge and expertise will help us a lot in running our venture. Prof. Shehbaz Haider He has done his LLB from University of central Punjab. He is an practicing law since 7 years and also teaching law at fast and Ucp. He will be helping us in making legal decisions
Law Firm
TMG & associates is a qualified and professional all service law firm in Lahore-Pakistan. It specializes in corporate law, business law and banking law. The law firm Pakistan attorney has momentous practice defensive about a wide range of hearings in a diversity of substantive divisions. Our attorney is extremely qualified prosecution lawyers, who have done several cases to decision with the matchless achievement. Our lawyers in Pakistan also have extensive
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experience in litigating and advising clients about authorization acquiescence and proceedings before federal and provincial judges, courts high courts, Supreme Court and juries. Contact Number Lahore Office 18/3-C, Model Town, Lahore 54000 Tel: (+92-42-5842991-95) Fax: (+92-42-5842996) Email: info@tmg.com.pk Website: www.tmg.com.pk
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A
10% 10% agree neutral disagree 80%
B. Percentage of peoples who are willing to buy package with brand name
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B
10% 37% Agree Neutral Disagree 53%
C. Percentage of people who prefer to buy all needed thing at one place.
C
6% 22%
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D
10% 29% 3000-4000 4000-5000 5000-6000
61%
E. Percentage of People who prefer to take Dates of all kind which is imported from Saudia.
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20%
18%
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G. Percentage of people who said that brand name increases their preference.
18%
Other than that 33.34 percent people wants to buy dates 1-2 times, 39.21 wants to buy dates 3-4 times and 27.45 wants to buy 4-5 times. This data shows that at average people mostly people prefer to buy dates even if they are not come back from hajj or umra.12.76 people buy 1-2 liter Abb-e-zam zam, 30.04 likes to buy 2-3 liter and 53.19 likes to buy 4-5 times, after analysis of this data we found that mostly people likes to buy 3-4 lit Abe-zam- zam. This analysis shows that our idea seems viable and people are intended to buy it.
Competitor Analysis
In competitive analysis we conduct a detail analysis of our competitors, for this firstly we needs to identify our competitors. There are basically three types of competitors:
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Direct Competitors
Direct competitors are those whose business offering is similar to us. And the direct competitors of AL-JANNAH are Darussalam and Alhuda. Both of them are providing similar offering like Darussalam is providing ihram, abbaya, dates and abb-e-zam zam. And Alhuda is providing only dates and abb-e- zam zam.
Indirect Competitors
As we are providing packages for umra and hajj and our indirect competitors includes all markets that provide the same needed thing for hajj and umra. And the other prevailing products are used as an alternative and substitutes.
Future Competitors Our future competitors should be our suppliers can do forward integration. But still they became our indirect competitor.
Competitive Grid
Name
Products
Al Jannah
Complete Customize package for hajj and umra, abb-ezam zam, dates
Dar-us-slam
Only ihram abbaya, dates and abb-e-zam zam
Al-Huda
Only dates and abb-e- zam zam. Basically they are providing Islamic books
Any other
All other markets like moon market, karim market etc. provide all products except dates and abb-ezam zam All needed products are fragmented No brand name
Product benefit
Provide all products under one roof. Will create HIGH brand recognition
Does not provide all products required for hajj and umra Medium
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High High
High High
Moderate Moderate
Medium Low
High
No proper marketing -
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Question Mark
These products are in growing market but having low market share.AL-JANNAH is in question mark right now because they are starting a new business or product where buyers have yet to discover them. The marketing strategy of AL-JANNAH will be to get markets to adopt these products which include abbaya, ihram, water bottles, umbrella, various kinds of dates and slipper as well. Question marks have high demands but low market share as a business or product is new.AL-JANNAH will be increasing its market share because if this not happen then it eventually become dog which we will not be doing. The best way to handle at this stage is that whether to invest heavily on the products to gain market share or to sell them.
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Stars
Stars are defined by having high market share in a growing market.AL-JANNAH will be in the stage of stars when the business will get high market share by providing customers with customized and flexible package which will be according to the needs and wants of the customer. Stars are the leaders of the business but when we will reach at this point we still need some promotion and placement of our business to make it more efficient and effective. If AL-JANNAH kept his market share in the market then we will be able to convert the stars into a cash cow stage or life cycle.
Cash Cow
Cash cows are in a position of high market share in a mature market.AL-JANNAH at this stage will be achieving the competitive advantage for its business and then cash cows can give us high profit margin and as well as a lot of cash flow. As the AL-JANNAH is in a position of low growth the placement and promotion investments will be low at that time. Investing into supporting infra structure will be helpful for AL-JANNAH to increase efficiency and increase cash flow more for the business.
Dogs
Dogs are in low growth as well low growth market share.AL-JANNAH will be avoiding and minimizing these circumstances of the business to reach. In this situation if a product is not delivering cash it should better be liquidate or otherwise the product can come with a new innovation and do lots of things.
Swot Analysis
Through strategic planning the company decides what it wants to do with each business units. Basically SWOT analysis is a strategic planning tool used to evaluate the strength, weakness, opportunity and threats as well.
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Strengths
These are the internal capabilities that may help a company reach its objectives. They are basically the characteristics of the business which they are providing.
Weaknesses
These are the internal limitations that may interfere with a companys ability to achieve its objectives. These weakness should be recognized and soon recover from it.
Opportunities
These are the external factors that the company may be able to exploit to its advantage. Provide external chances to improve the performance.
Threats
These are the current and emerging trends or external factors that may challenge the companys performance. These threats can cause a problem or trou ble for the business or project.
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Strengths of Al-Jannah`
AL-JANNAH strength is that they are providing all those things which hajj and umra people needed less than one roof. We are opening this business at moon market helps us to create brand name. Al-JANNAH is providing their customers with flexible and customized package which is very rare in Lahore areas. We are providing with the facility of re-modifying the package which is according to customer need and want. We will have strong relationship with suppliers.
Opportunities of Al-Jannah`
Al-JANNAH is providing customers with flexible and customized package which no one is providing. AL-JANNAH has filled a gap in the market place. AL-JANNAH is opening a branch where there are no competitors. We can recognize our image in the market more quickly as compared to other competitor. Customers get easy access and things which they need. It is not difficult for AL-JANNAH to compete in the market place.
Threats of Al-Jannah`
The competitor can open new branches near the outlet of AL-JANNAH. We cannot attract more customers because of different bazaar. It is difficult to build trust and confidence among customers.
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Political
Social
PEST
Technological
Economic
Political Factors
Hajj and Umrah is the religious matter and government rules and regulations are very important for our business because flow of our customers and sales is completely depend on numbers of people travelling for Hajj and Umrah like government increasing Hajj dues and flow of our customers is also depend on NUMBER OF PILGRIMS according to government policy.
Economic Factors
Economically Pakistan economy is going through worse time Pakistan at present is facing grave economic water, gas and safe communication infrastructure and networks in the country. In such condition it is quite challenging to start new business and run it successfully. Low employment rate and the value of currency of Pakistan is going down every day which will affect our imports for dates and zam zam from Saudia Arabia and bad economic conditions and devaluation of currency increase the ticket and hajj and umrah package prices which is difficult
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for people to afford and in result less number of people travelling for Hajj and Umra and decrease in our sales
Social
Pakistan is a Muslim country and going for Hajj and Umra is the first desire of every Muslim it does not matter from where person belong live they want to visit for Hajj and umrah and want the best experience so this factor greatly influence the success of our business and people want best products and services in reasonable price for Hajj and Umra which is the basic competitive advantage of our business so by creating best quality goods for best journey of their life will create very good image in our customers mind.
Technological
Today its all about how you market and communicate your product benefits to the target customers so Al Jannah will be using media source like face book and twitter for marketing and promotion to make product more effective and make our product look more attractive. Providing products in more conveniences packing and getting them bundle together according to customer need will increase sales.
Pricing Strategy
Those peoples who are going for Hajj and umra our customized packages is the best choice for them. So, we used value based pricing and based our price of product according to the perception of our target customers. Items Package Dates Abbaya Abb-e-zam zam Price for the 1st year 3500 1800 1800 250
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Competitor Prices (Dar-us-Salam) Items Abb-e-zam zam Dates Abbaya Prices 230 1500-2400 1500-4000
Marketing strategy
Product
Promotion
Marketing Mix
Price
Placement
Product
Product is anything that can be offered to a market for attention, acquisition, use, or consumption and that might satisfy a want or need. The basic product of Al -Jannah` is a customized bag which includes all the essentials which are required for Hajj or Umrah. It contains things like ahram, abaya, towel, umbrella, tasbeeh, slippers, water bottle etc. We also provide dates and aab-e-zam zam for the returning hajjis who needs excessive quantity of these things to distribute it among friends and family. We also have abayas of latest fashion for the ladies of Lahore.
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Price
The price of our product varies according to the customization the customer will require. But on an average the price of the Hajj Bag will range from 4000 5000. As we are a providing the product with a proper brand name and providing all the essentials under one roof so the price is little higher as compare to the competitors which are providing the things separately from various places. According to the survey conducted by Al-Jannah` team, it was estimated that 75% of the people who are going for Hajj and Umrah are ready to buy our product at this price. The prices of dates are also reasonable and a bit cheaper as compare to competitors. But as its cost price varies according to the season so the price also varies.
Placement
Our shop is located at Moon market Allama Iqbal Town. As it is very famous place where many people go for shopping. It is a very busy area which helps us to recognize our brand. This area is well known and a perfect place where peoples comes for shopping. We target this area because this area is developing and other brands will be there as we are planning to create brand so this area helps us in brand recognition.
Promotion
In start we are not spending much on the advertisement rather we are making brochures and spreading it all over Lahore by giving them to a newspaper hawker. As our shop is in main place that is Moon market which is the main area of Lahore so it will help us in recognizing our brand. We are also making our proper website. It will contain all the necessary information about our products and services. Our ad will be available on our website. We will also promote our brand though social website like: twitter, face book, and many other. It is the most effective way of promotion. One best, cheapest and effective way of promotion is through word of mouth. Our product placement will helps us for promotions.
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Supplier risk
legal issues
Manageme-nt risk
Suppliers Risk
Backbone of our business model is supplier so there are following risk associated with supplier s: Lower product quality: if our suppliers supply us lower quality products then it will affect our brand image. Increase our cost: if suppliers increase the cost of products then it will squeeze our profit margin Supply on time: as we are providing complete package so if our one supplier give us late delivery then it will affect our whole package
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Legal Issue
If some legal issue is created regarding import of dates then I will affect our brand name
Management Team
If one partner on our key management personal is leaving the firm then it will create problem. We need a new partner to reconcile the business and to find experienced and trustworthy partner is tough job.
Legal issues
To handle legal issues we have a contract with legal firm who manage our legal issues.
9. Financial Forecast
Capital Requirement
Total investment required is 1,457,280 in order to run business.
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Sources
Our venture team consist of 4 partners and each partner have to put 1.5 lac and other 957280 is invested by investors. Uses of Funds We use all these funds firstly to register company logo. Then we use it to pay salaries, utility bills, purchasing of supplies, and import of dates and abb-e-zam zam and all other miscellaneous cost that are required to run business efficiently. The management team never take the money until business reaches its payback period and he use it as a retain earning.
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Profit Division
Our profit will be divided into 60:40 ratio 60 percent profit will divide between team 40 percent profit will be given to investors Management Amara Sadaf Saniya Mazhar Anum ijaz Sana Akbar Shares 15% 15% 15% 15%
10.Exit Strategy
Exit strategy is used to plan that how we expand our business in future. We will add new products like olive oil soap to our customized baggage We will open franchises all over Pakistan We will try to add goodwill by introducing a reputable personality to our brand name We will enhance our products and market as well We would make relations with agencies which arrange Hajj and Umrah. They will be our
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