Butterstick Alisha

8/13/2019 Butterstick Alisha

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ENTREPRENEURSHIP

The Butterstick

SUBMITTED BY :- Alisha Khurana


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ABOUT

The Butterstick INNOVATIVE IDEA

CUSTOMER

SATISFACTION in

terms of qualityand health

Target

Upper middle

class and high

class

Appeals to todays

generation, timesaving

Attractive


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Butterstick

The Butter Stick , may actually break the art form's rules.

a conventional stationery glue stick, but with deliciousdairy inside perfect for lathering up a piece of bread ortoast without dirtying a knife.

Easy, ergonomic dispensing also allows for total buttercoverage.


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INDUSTRY ANALYSIS


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CULTURE

Health conscious

Time saving

RAWMATERIAL

High quality butter

Packaging material plastic

LEGAL Taxes, state laws

COMPETITION

No direct competition in the segment

New concept in the area

TECHNOLOGY

New and advanced technology

INDUSTRY

DEMAND

New product

Niche market available


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ORGANIZATIONAL PLAN


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MANAGEMENT

OWNER AND STAFF ( MANUFACTURING TEAM )

LEGAL FORMSOF BUSINESS

SOLE PROPRIETORSHIP

STARTING COST DISCUSSED IN FINANCIAL PLAN

CONTINUITY

CONTINUED BY FAMILY

FUNDING

SELF FINANCED


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TRANSFERABILITY TO FAMILY

CAPITALREQUIREMENTS

SELF - FUNDING

MANAGEMENTCONTROL

OWNER HAS THE CONTROL

PROFIT/LOSS

PROFIT/LOSS BORNE BY OWNER


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MANAGEMENT TEAM

CEO Manager :1x30,000=Rs.30,000

Area Managers: 4 x Rs.30000

p.m=Rs.120000p.m PR Advisor: 1x Rs.15000 p.m= Rs.15000p.m

HR : 1x20,000=Rs.20,000

Staff:5x Rs.3000 p.m= RS.15000p.m

Total Salaries Paid: Rs. 2,00,000 p.m


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DESIGNING THE ORGANISATION

ORGANIZATIONAL STRUCTURE

CEO

ProductionManager

Area

ManagersPR Advisor Staff


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Selection

The promoters are college going students who would be selectedthrough personal interviews. The area managers are people whohave been associated with this industry and hold a prior workexperience of at least a year. They have been located throughpersonal sources.

Institutes like National Dairy Research Institue ,Bengaluru.

Training: There will be orientation training and later down the line coaching

would happen on regular basis. Rest all the training would be onthe job. The idea would be to polish the learning skills of AreaManagers and develop the same for Promoters.

A Trainer would be hired for the same and would be called as andwhen needed.

For the induction, onetime payment that will be done to the trainerwould be Rs.(25,000) approx for a period of 3-4 days.


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MARKETING PLANMISSIONTo create a market for

a unique FMCG product andcreate niche potential customer

base in order to earn the edgeover other competitive productsdue to its easily utility and other

benefits

a) Target Group: Upper Middleclass and High class

b) Size: age no bar

c) Price: Rs.60-65 ( price may varyaccording to the choice of raw

material )

d) Distribution Channel : Rawmaterial sourcing , Packaging will

be inhouse


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MARKETING MIXPRODUCT

The Butter Stick , may actually break the art form's rules. This thing couldactually catch on. The Butter Stick is like a conventional stationery gluestick, but with delicious dairy inside perfect for lathering up a piece ofbread or toast without dirtying a knife. Easy, ergonomic dispensing alsoallows for total butter coverage.

PRICEPricingThe butterstick will be safely priced at

MRP: Rs.60

Mark-up: 20 percent

Margin: 40 percent

Original Price : Rs.35

PROMOTION-Print Media ,posters and social media like a facebook pageviral marketing.

PLACE-FMCG outlets in malls


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FINANCIAL PLAN

Expected Sales Volume: 6000 units per month(figure assumed)

Actual Production Required: 10000 units permonth (figure assumed)

Buffer Stock: 2500 units per month (figureassumed)

Price of one unit of candy=Rs.60-Rs.70

Average Price=Rs.65 Therefore, Expected Sales=Rs.65 x 6000

x12=Rs.46,80,000p.a


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Operating Budget

Fixed Expenses:

Rent (Warehouse , Location: Shahpurjat, New Delhi):

=Rs.20000 per month (200 sq ft.)=Rs.20000 x 12 =Rs.2,40,000 p.a b) Salaries=

Manager :1x30,000=Rs.30,000

Area Managers: 4 x Rs.30000 p.m=Rs.120000p.m

PR Advisor: 1x Rs.15000 p.m= Rs.15000p.m HR : 1x20,000=Rs.20,000

Staff:5x Rs.3000 p.m= RS.15000p.m

Total Salaries Paid: Rs. 2,00,000 p.m

c) Depreciation=Rs.70000 (machinery)@20%=Rs.14000 p.a

=Rs.50000 (furniture) @ 10%=Rs.5000 p.a

Total Fixed expenditure : Rs.4,59,000


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Variable Expenses

Promoters Commission ( Varies with Numbers sold ) @1%

Advertising

Social Networking (Facebook, Twitter ): Zero Cost

Pamphlets: A6 Pamphlet

105mm x 148mm (150 gsm gloss)

300 dpi (Hi Resolution)

2 colours (Double sided)

=5000 pamphlets=Rs.1385

Walking Hoardings (Outside FMCG stores) =10 x Rs.5000 p.m=Rs.50000 p.m

Total Advertising Cost= Rs.51385 (Variable) x12=Rs.616,620 p.a (approx)

Packaging: 5000 x Rs.0.25 x 12=Rs.3000 p.a

Raw Material Cost: butter Rs (10-15) + Rs0.2

Per unit cost

=5000 units p.m x 12 x Rs.12.5=Rs.7,50,000p.a (approx)

Bank Charges=Rs.300 x 12 =Rs.3600 p.a

Stationary & Printing=Rs.5000x 12 =Rs.60000 p.a

Distribution Cost

Electricity=1567 units xRs.6.7 per unit=Rs.10500 per month x 12=Rs.126000 p.a Tax @ 9%=Rs.132280

Total Variable cost : Rs.16,26,485


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Personal Vehicles for promotion and distribution:6x Rs.48000=Rs.288000

Machinery =Automatic Stacker

(2*Rs.10000)=Rs.20000 Plastic pacakaging (1000*Rs.50)

=Rs.50000

=Rs.70000

Furniture and Fixtures=Rs.50000


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Thank You

Documents

Butterstick Alisha