PAPER BAGS

Project on entrepreneurship SUBMITTED BY PG sem-2

RISHABH CHHEDA SANYOGEETA CHORE PRATIK JAMSANDEKAR HEENA KOTHARI SHRUTI PAI RACHANA PATEL RIDDHI UDANI MOHD ALI SHAH 06 07 14 16 21 24 40 45

SUBMITTED TO
PROF.K S IYENGAR YEAR 2011-2013

GURU NANAK INSTITUTE OF MANAGEMENT STUDIES

NAME OF THE OWNERS

1.RISHABH CHHEDA. 2.SANYOGEETA CHORE. 3.PRATIK JAMSANDEKAR. 4.HEENA KOTHARI. 5.SHRUTI PAI. 6.RACHANA PATEL. 7.RIDDHI UDANI. 8.MOHD ALI SHAH.

NAME OF THE BUSINESS VENTURE ECO FASHION BAGS

BUSINESS LOCATION:- MATUNGA,SION,DADAR,WADALA. WHAT PRODUCT TO SELL:- PAPER BAGS. PURPOSE OF THE PLAN: ECO FRIENDLY AND RECYCLABLE. INCREASE AWARENESS OF HAZARD OF PLASTIC. CURRENT TREND.

STATEMENT OF PURPOSE
Amount of loan required: - No Loan required Amount of money you are putting in: - we are putting The loan period for how many years you require the loan amount for: - Nil The impact of the loan and the purpose it will have on your business: - Nil The collateral that will be used to support the loan: - Nil

OVERVIEW OF INDUSTRY(WHY PAPER BAGS)

Retailers currently have a finite branding opportunity to position themselves as forward thinking, environmentally aware businesses by switching away from plastic carrier bags. With rapidly increasing consumer awareness of the problems of waste, landfill and the environmental impact of plastic bags, these issues are high on the media agenda and consumers minds. There is an increasing likelihood that the government will introduce legislation to curb plastic bag use. Now is the time to switch your business to eco-friendly alternatives voluntarily, to enjoy the significant marketing benefit that this currently confers.

COMPANY DESCRIPTION

ECO FASHION BAGS is a new company that will deal in the business of PAPER BAGS.It will be a partnership, owned and operated by Rishabh Chheda,Sanyogeeta Chore,Pratik Jamsandekar,Heena Kothari,Shruti Pai,Rachana Patel,Riddhi Udani,Mohd Ali Shah. ECO FASHION BAGS offers an extensive range of PAPER BAGS.We purchase all of our raw materials from Crawford market(old Mumbai). We offer newspaper bags, bags for occasions like weddings,birthdays and for kitty parties. ECO FASHION BAGS will target retailers,medical shops,vendors,gift shops and even for weddings and birthdays. After achieving break even and achieving a reasonable profit we plan to expand and make tie ups with self help groups thereby providing employment. The prospects of making money from selling handbags made out of used newspapers may not seem promising at first, but this can be a very profitable business if handled in the right way. There are two factors that work in favor of this business: 1. Increasing environmental awareness makes it a very viable and marketable product. As paper is eco-friendly, it is going to take over polythene as the leading material for production of user-friendly and durable bags. 2. Newsprint is available in abundance. In fact, one of the largest amount of recyclable waste available is in the form of newsprint; therefore, there is no shortage of the raw material. Furthermore, the cost of production of these bags is very less which also means that it can be sold at affordable prices (thus making it a very marketable product). 3. Inventory risks are low, especially if there is abundant space available to keep them in a closed environment, away from rain, moisture and humidity. 4. Many cities have started banning polythene bags; this provides an opportunity for paper bags to increase their market share

The PRIMARY OBJECTIVES of ECO FASHION BAGS over the next year are to: Develop a strong client base. Keeping overhead costs to a minimum. Expand business operations.

MARKET ANALYSIS
Market research was done at different levels , taking into consideration different types of sample. The different samples considered were: Medical shops Vendors Grocery shops Occasion bags ( Birthday, Weddings, Kitty parties)

The findings of this research are shown in the form of Graphical Representation as below.

Sales

sales of news paper bags 42%

sales of plastic bag 58%

SEGMENTATION
GEOGRAPHIC SEGMENTATION
We have targeted Matunga, Sion, Wadala and Dadar because retail outlets are available on a large scale in these prime areas. Availability of medical shops near Sion hospital area makes a good location for business.

PSYCOGRAPHIC SEGMENTATION
Our Target customers are Medical shops, Retail outlets , Vendors. Vendors can give us a good business as women daily go to market area to buy vegetables. As, medical shops are near hospital area huge number of consumers enter medical shops. Usage of paper bags will be more convenient for environment, and specially near hospital areas. We have targeted mainly those places where consumers enter shops for their basic needs.

DEMOGRAPHIC SEGMENTATION
Our product mainly targets shops where consumers enter the most for their basic needs. There is no age specification for the product. It is for all income level people.

TARGETING
Medical shops Vendors Grocery shops Occasion bags ( Birthday, Weddings, Kitty parties)

POSITIONING
Positioning of our product is we make paper bags out of recycled papers. It is eco-friendly, it does not harm the environment as the paper can be recycled. It is prepared from waste and we give out our best.

SWOT
Strength: Low cost with high quality. Dedicated & punctual staff. On time delivery. Favorable access to distribution networks.

Weaknesses: Entry. Inexperience. High cost structure. Limited area of operation. Not able to enjoy economy of scale.

Opportunities: Scope of export. Large market. Changing of lifestyle/fashion.

Environmental conscious customer.

Threats: Large number of competitors. Threats of substitute product. Highly sensitive & volatile market. New regulation.

Q) How would you attract customers? A) The best way to attract customers is to provide them with various offers. Like purchase 100
bags and get half a dozen bags free. Or, buy 200 bags and get a choice of your name printed on the bag.

Q) Why should your customer agree to pay you the price that you are demanding? A) As, paper bags are considered to be the most eco friendly, we are making it a point that they
are available and affordable for everyone. We have set our pricing strategies in such a way that even a local vendor can afford the paper bags and it is for all income level. And along with affordability we are even offering excellent quality and durability at such a low price.

Q) Why did u arrive at this price? A) Paper bags are quite economical and in order to adapt the habit of using the paper bags
instead of plastic bags we have come up with an economical price which falls in the range of Rs 2.50 to 8 per bag so that from the vendors to the big retailers can afford paper bags for their customers.

Q) What special advertisement you will be offering to your customers?

Word of mouth Door to door selling

Placing stalls at exhibitions and outside colleges

LOCATION
Convenience: - As we have college in Matunga we prefer nearby location for selling the of cards. Initially, to ensure a good hold over our business, we have selected the business location to be at areas nearby to Matunga. Cost: - Rent of the stall at Exhibitions is to be paid. Moreover, costs incurred for raw material will be taken into consideration. Safety: - No damages in the bags, as prepared with thick material. Transportation :- Transportation cost will be a bit high.

HOW TO REACH THE CUSTOMERS

With increasing awareness and go-green campaigns undertaken by many corporates, recycling has become a viable & popular option.Once the paper bags are being produced on a regular basis, we can approach small shops, the local departmental store, the hardware items sellers for buying our product. We can also sell the handbags to customers through our local vendors (departmental stores, stationery shops, gift shops, etc.). If the business is doing really well, we can sell the bags from a commercial place (shop), sell it from home or deliver on order through the internet. We will use the eco-friendly campaign to drive sales and create a brand name for our venture. Ultimately with the right campaign and branding campaign, we can make many times the profit, starting with very less investment.

DESCRIPTION OF THE PRODUCT

One thing to note here is that the paper bags are not recycled in the classical sense, that is, they are not grounded, made into a paste and then fed to machines which create paper bags or reams of paper out of them. Rather they are just folded in to specific patterns and sizes and then the edges are pasted to create simple paper bags. We are providing a varying gamut of paper bags which is long lasting and highly durable.These bags are light in weight and spacious. The bags are designed in such a manner, so as to carry a reasonable amount of weight. Our products are available at competitive price in the market.

1.NEWSPAPER BAGS Recycled English language newspaper. White sheet lining for extra strength.

2.HANDMADE COTTON PAPER BAGS Luxury, thick and textured paper.

3.RECYCLED MILL-MADE PAPER BAGS

Reinforced eyelets. Cardboard base. Choice of handle types.

DESCRIPTION OF THE VENTURE

COMPANY VISION To provide impeccable quality products and to make our company the most valuable and profitable company. To provide best out of waste.

MISSION STATEMENT 3RS -Reduce,Reuse,Recycle and to contribute to the society in a ecofriendly manner.

PRICING STRATEGY We have adopted penetration pricing strategy in which the price of our product is very low and through this we will try to capture more market and customers. Our product is priced as follows1.Big newspaper bags Rs 3. 2.Small newspaper bags Rs 2.5. 3.Fancy paper bags Rs 8.

FINANCIAL DATA

Estimated Cost sheet of Eco Fashion Bags as on 31/3/2013

Particulars Direct materials Paper Glue Direct Expense (Including Packaging) WORKS COST Administrative Overheads Electricity COST OF PRODUCTION Selling Overheads Travelling expense of salesperson TOTAL COST PROFIT TOTAL SALES Small size 1600 800 800 3200 400 3600 Big size 800 400 400 1600 200 1800 Fancy Bags 1600 800 800 3200 400 3600 Total 4000 2000 2000 8000 1000

400

200

400

1000

4000 800 4800

2000 400 2400

4000 800 4800

10000 2000 12000

Estimated Cost Sheet of Eco Fashion Bags as on 31/3/2014

Particulars Direct materials Paper Glue Direct Expense (Including Packaging) WORKS COST Administrative Overheads Electricity COST OF PRODUCTION Selling Overheads Travelling expense of salesperson TOTAL COST PROFIT TOTAL SALES Small size 2295 1147 1147 4589 574 5163 Big size 1410 706 706 2822 352 3174 Fancy Bags 2295 1147 1147 4589 574 5163 Total 6000 3000 3000 12000 1500 13500

765

470

765

2000

5928 1261 7189

3644 778 4422

5928 1261 7189

15500 3300 18800

Estimated Cost Sheet of Eco Fashion Bags as on 31/03/2015

Particulars Direct materials Paper Glue Direct Expense (Including Packaging) WORKS COST Administrative Overheads Electricity COST OF PRODUCTION Selling Overheads Travelling expense of salesperson TOTAL COST PROFIT TOTAL SALES Small size 3375 1313 1312 6000 750 6750 750 Big size 2250 874 876 4000 500 4500 500 Fancy Bags 3375 1313 1312 6000 750 6750 750 Total 9000 3500 3500 16000 2000 18000 2000

7500 1781 9281

5000 1188 6188

7500 1781 9281

20000 4750 24750

Estimated Balance Sheet for 3 years

Particulars Liabilities Capital P/L Creditors Total Liabilities Assets Fixed Assets (-) 10% Depreciation Total Fixed Assets Debtors Cash Total Assets 31/03/2013 10000 2000 4000 16000 8000 -8000 6000 2000 16000 31/03/2014 10000 3300 6000 19300 8000 (800) 7200 9400 2700 19300 31/03/2014 10000 4750 8000 22750 7200 (800) 6400 12375 3975 22750

MANAGEMENT
BUSINESS BACKGROUND We have chosen this business as we want to spread awareness regarding the use of eco friendly products. Our goal is to reduce the use of plastic bags which causes environmental hazards and promote the use of paper bags

MANAGEMENT SKILLS We have with us the best people for taking care of the finances of the business. Thus giving us a clear view of how much is the exact loss or profit gained. This in return will help us to know our companys progress. We have effective marketing skills which will help us to advertise and sell our product. We have good communication skills which will help us to know our customers better. Our selling skills as well as negotiating skills will benefit us for marketing our product.

QUALITIES OF OUR TEAM Team spirit, goal oriented, optimistic, clear vision, communication skills, convincing power, self motivated.

MANAGERIAL TEAM
NAME: RISHABH CHHEDA QUALIFICATION: B.COM DUTIES ASSIGNED: FINANCE AND SELLING AND DISTRIBUTION

NAME: SANYOGEETA CHORE QUALIFICATION: B.COM DUTIES ASSIGNED: PREPARATION,SELLING AND DISTRIBUTION

NAME: PRATIK JAMSANDEKAR QUALIFICATION: B.M.S DUTIES ASSIGNED: PREPARATION AND SELLING

NAME: HEENA KOTHARI QUALIFICATION: BAF DUTIES ASSIGNED: FINANCE AND PREPARATION

NAME: SHRUTI PAI QUALIFICATION: B.COM DUTIES ASSIGNED: PREPARATION,SELLING AND MAINTAINENCE

NAME: RACHNA PATEL QUALIFICATION: BBI DUTIES ASSIGNED: PREPARATION,SELLING AND MAINTAINENCE

NAME: RIDDHI UDANI QUALIFICATION: B.COM DUTIES ASSIGNED: PREPARATION AND SELLING AND DISTRIBUTION

NAME: MOHD. ALI SHAH QUALIFICATION: B.SC (PHYSICS) DUTIES ASSIGNED: SELLING AND DISTRIBUTION