Flow of Presentation

• Executive Summary

• Objectives & Mission

• Establishment of nursery

• Financial & Data Analysis

• Market & Industry analysis

• Conclusion
 Executive Summary

• Natural Nursery is dedicated to providing a quality choice for people looking for plant and garden supplies, as well

marketing of good quality flowers, ornamentals and bonsai. Our start-up expenses come to Rs. 27,62,000 which

includes the cost of the greenhouses and the cost of rent for the land .

• We will offer a wide variety of plants, trees, vegetable plants, along with a selection of garden supplies. Most of the

plants we sell will be grown in our greenhouses. With a convenient location Natural Nursery intends to successfully

market to the residential customer, as well as contractors and renters.

• We would like to see a five to ten percent increase in our customer base each year. Our marketing strategy includes

providing a knowledgeable staff, affordable prices, a great location, and top notch customer service.
 Objectives

• Maintain an average gross margin at or above 50%.

• Realize an annual growth rate of 10% in Year 2.

Mission

Dedicated to providing a wide variety of plants and trees to customers with pleasant shopping experience.

Keys to Success
• Sell products of the highest quality with excellent customer service and support.

• Retain customers to generate repeat purchases and make referrals.

• Continue to expand daily sales by adding to the variety of plants we sell.

• Communicate with our customers through creative advertising.

 Industry Analysis
• Future outlook and Trends-
• 1. Important commercial activity in agriculture
• 2. Evolved as viable and profitable alternative
• World Production and Consumption-
• Growing a rate of 10% per year (Production)
• High Demand- Country like Germany, UK, France, Italy

• Production Trend of flowers in India-

Indian Floriculture Industry- Analysis of Competitors –

• Foreign-
• African Countries
• Asian- China, Nepal, Pakistan, Srilanka
• Domestic- Ganga Nursery, SRS Biotech, Nandan
Kanan, Sharon Nursery and Many More
• Challenges-

• Low Export Potential

• The performance of Indian floriculture sector has not been encouraging

• High Freight Rates

• Inadequate Cold Chain Management

• Innovation, quality and environmental issues

• Strategies-
• Efficient backward and forward linkage
• Integrated cold chain from harvesting to customers
• Improvement of cargo handling facilities

• Risk Management Strategies-

• The business will use the diversification of species as its main risk management tool.
• Nursery crops are covered by crop insurance.
 Market Analysis

Market Segmentation

Geographic's Demographics

•Metropolitan area with a population of 200,000 people. •Male and Female.

•A 100 mile geographic area would want our services, •Age range of 25 to 80 years, with a median age of 40.

•The total target market is estimated at 500,000 people. •Residential, Homeowners

•Commercial contractors

•Renters
 Market Analysis

Target Market Segment Strategy :-

Our marketing strategy centres around superior performance in the following areas.
• Customer service
• Large selection and fair pricing
• Quality products

Objectives:-

To provide quality products at competitive prices.

To provide consistent quality throughout the life of the business.

To retain customer’s respect.

To provide products for customers that will meet their standards.

 SWOT Analysis

• Internal Strengths: External Threats:

• The owner has experience growing plants. . Drought

• . Large Suppliers
• The owner has business experience. High demand
More profit

Existing Rivalry High Many Competitors

• Continued growth of the new housing industry in the target area.
• Internal Weaknesses: Major Availability Low Price
Bargaining New Business Penetration Strategy
• Wholesale sales will not net as much income as retail sales. Power of buyer
High

• The owner will need to purchase some equipment. Less

Bargaining Many Suppliers
• Lack of High Technology Power of Less Own Production
supplier

Establishment in village Establishing strong market

• External Opportunities: Threat of new
Moderat linkages and trust among all
stakeholders reduces the
e
entrants risk.
• The owner has many connections to the nursery industry .
Threat of No other alternative.
• High Demand substitute
Less
 Establishment of Nursery

• Site Selection:-
(Land preparation:- 2ha [ 1 ha for mother plantation, 0.5 acre for office, road, storage, garage; 1 acre demonstration and remain;
1 acre net house and shade house)

• Planting material , packaging material

• Construction

• Workers:- 6 (4+1+1)

• Tools, Equipment and vehicles:-2 TATA ace; 1 power tiller

• Irrigation system

• Computers and other hardware

 Nursery’s Portfolio
Products Services
• Ornamental plants
• Online transactions
• Bouquets
• Rent a pot
• Loose and cut flowers
• Training to customers
• Bonsai
• Free home delivery
• Lawn turf
• Monthly maintenance
• Climbers

• Seasonal plants
 Input cost

Fixed Cost (Rs.) Variable Cost (Rs.)

Item Cost
Item Cost
Land (2 ha) 600000
Workers (6 @ Rs 3000/month) 216000
Regulatory approval 200000
Bonsai Preparation 75000
Irrigation Unit 100000
Turf Preparation 75000
Fencing 50000
Advertisement 120000
Road, Building, Net house construction 600000
Cultivation cost 100000
Planting material 150000
Electricity, fuel, repairing 80000
Vehicle, tool & equipment 900000
Total 666000
Total 2600000
second year onwards 810000
second year onwards (as a maintenance
cost) (Rs 144000 for additional four workers @ 3000/month)
50000
 Input cost (Contd)

Fixed cost Variable cost total

1st year 2600000 666000 3266000
2nd year 50000 810000 860000
3rd year 50000 810000 860000
4th year 50000 810000 860000

Total expenditure 2750000 3096000 5846000

 Prospective income
Item Income (1st Year) Income (2nd Year)

Bouquet 7*150*80 = 84000 14*300*100 = 420000

Seasonal plants 6*200*30 = 36000 40*300*30 = 360000

Cut flower & loose
Flower for marriage decoration 5*10000 = 50000 12*10000 = 120000

Rent a pot@ 20 pots in each party 40*1000 = 40000 60*1000 = 60000

Climbers 300*100 = 30000 450*100 = 45000

Processing industry 30000 = 60000

Ornamental Plants 2*300*200 = 120000

Turf (carpet lawn grass) 500*250 = 125000

Prospective income 270000 1310000

 Prospective income
Item Income(3rd Year) Income(4rth Year)

Bouquet 15*300*100 = 450000 15*300*100 = 450000

Seasonal plants 60*300*40 = 720000 65*300*40 = 780000

Cut flower & loose

Flower for marriage decoration 20*11000 = 220000 20*11000 = 220000

Rent a pot@ 20 pots in each party 100*1250 = 125000 100*1250 = 125000

Climbers 600*100 = 60000 600*100 = 60000

Processing industry = 150000 = 150000
Ornamental Plants 5*300*250 = 375000 5*300*250 = 375000

Bonsai 100*3000 = 300000 100*5000 = 500000

Turf (carpet lawn grass) 1000*250 = 250000 1000*250 = 250000

Prospective income 2650000 2910000

 Gross income & prospective profit

1st year income 270000

2nd year income 1310000
3rd year income 2650000
4th year income 2910000
Gross income 7140000
Prospective profit
Gross income 7140000
total expenditure 5846000
Profit 1294000
 Year wise profit

income – expenditure profit

First year - 270000 – 3266000 = - 2996000
Second year - 1310000 – 860000 = 450000
Third year - 2650000 – 860000 = 1790000
Fourth year - 2910000 – 860000 = 2050000

Net worth after first year = - 2996000

after second year = - 2546000
after third year = - 756000
after fourth year = + 1294000
 Break-even Analysis

Cumulative cost Cumulative Income

1 year 3266000 27000
2 year 4126000 1580000
3 Year 4986000 4230000
4 Year 5846000 7140000
 Own Strategies for Success

• Before deciding on species to plant, the owner plans to visit with several businesses in the target area to determine the
species they are selling.

• The business is located within thirty miles of the target market. This will enable the target market to have better
accessibility to plants when they are needed.

• Because of the time required to produce the trees, the business cannot change products easily. This will make
changing products difficult. This will also require the business to thoroughly research the species to be produced. The
business must have the foresight to predict what species will be desired in four years. This will make it difficult for the
business to expand or contract dramatically or quickly.