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BUSINESS PROJECT Zapotol Corporation Allenora Shampoo A Project submitted to the department of Management Sciences University of Education, Okara campus In partial fulfillment of the requirement for the degree of BBA(Hons) Abu Talha BBA (Hons) 2013-2017 1 | Page

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BUSINESS PROJECT

Zapotol Corporation

Allenora Shampoo

A Project submitted to the department of Management

Sciences

University of Education, Okara campus

In partial fulfillment of the requirement for the degree of

BBA(Hons)

Abu Talha

BBA (Hons) 2013-2017

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Chapter: 1

Introduction of Shampoo word

Did you know, that the word Shampoo is derived from the Hindi word “Champi”.

The British loved the massage so much, they started calling Champi as Shampoo

1.1 History:

• Lever brothers is founded by

• William hesketh lever in 1890

• Key player in food & household product industry

• Historically grew through acquisitions

1.2 Introduction of Unilever:

Lever brothers, the old name of unilever changed into unilever after the merger of lever

brothers and margarine unine in 1930

Unilever is a multinational company

It is one of the largest consumer goods companies in the world

Its brands are on sale in 151 countries

1.3 Introduction of sun silk:

Sun silk was launched in the UK in 1954, and by 1959 it was available in 18 different

counteries worldwide. At the time, Sun silk had an advantage over other shampoos in the

market as it only needed one application, and so meant washing less natural oils from the

hair. Sun silk cream shampoo for dry hair was launched in 1956.

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1.4 Introduction Head and shoulder:

Procter & Gamble researchers started making an anti-dandruff shampoo in 1950 Nearly a decade

of research went into making a new formula,] which introduced Pyrithione zinc into the

shampoo. It was first introduced to the U.S. market in November 1961 as a blue-green shampoo

formula. There are now nine different Head & Shoulders varieties for varying hair types, and the

formula has since changed color to white.

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1.5 Introduction:

ZAPOTOL corporation is established in January 2016.This company’s first product is shampoo

and this shampoo will be distribute in PAKISTAN.ALLENORA means “beauty” Shampoo is

very important everyone use shampoo on daily basis .Both gender can use this shampoo ,but

basically this product is for women. There will be three size of bottle 100 ml, 200 ml and 400 we

also give sachet packet to the consumer because this will easy to carry out. Our plan to become a

strong brand of shampoo in 5 years.

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Chapter: 2

Executive summary

2.1 The Market:

Zapotol will be participating in an exciting, growing market. Shampoos have seen explosive

growth in Pakistan. A recent survey indicate that 70% people use the shampoo is Pakistan. T.v

coverage help to increase the sale of shampoo, and growth of shampoo.

2.2 The organization:

Allenora shampoo is founded on the idea that maintaining customers is essential to the financial

health of the organization. With this in mind, Zapotol will be working hard to ensure that all of

their customers expectations are exceeded in all transactions. To Zapotol maintain good and

close relationships with customers.

2.3 Product, Services, and Delivery:

Zapotol will be Shampoo Company and shampoo will be offering a catalog with a mail order

services, and shampoo provide on big store like metro shopping center. Zapotol will offer

shampoos.

2.4 Objectives:

• To determine the average level of customer preferences towards ALLENORA shampoo.

• To identify the most significant variable affect the level of preferences.

• To recognize the potential benefits that customer expect from ALLENORA shampoo.

• Explore consumer reaction towards packaging.

• Understanding consumer’s perception of quality advertisement in term of it impact.

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• Examine consumers assessment of the product in terms of product performance and

related benefits

2.5 Mission statement:

The mission statement is fulfilling the needs of its target market by offering smart product, help

people feel good, look good and get more out of life we are trying to providing self satisfaction

and confidence”

2.6 Vision statement:

Our vision is sharing beauty and confidence with all!

2.7 Key to success:

• Product quality: This product is 7 in1 with hair fall , dry hair, dull hair, rough hair, anti

dandruff, anti-dandruff with conditioner and this product must be high quality and value.

• Services: Our patrons are paying have a good time. Each member of our company staff

is courteous, efficient and attentive.

• Marketing: We will need to target our audience very early and often, and introduce

Our product through more and more advertising. While business location is very perfect.

Management: In designing marketing plan the company must take other group into

their account the Company have to keep good relationship with R&D with top

management, with finance department. Management is a best key of success if we will

have not managed anything then our business goes into loss.

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Chapter: 3

Company summary

Zapotol Corporation is a new company. This company’s first product is shampoo and this

shampoo will be distributed in Pakistan. Our product name is Allenora shampoo we have select

the name Allenora because the meaning of this name is beauty. Our company wants to provide

better quality.

3.1 Company Ownership:

Zapatol Corporation is shampoo manufacturing and owned by the Muhammad Iqbal. In which

only one person can share the profit and loss.

3.2 Start Up Summary:

Our start up cost is on following graph in which including all cost of business like purchase

machinery, land, building construction, labor, computers, etc.

3.3 Company Location:

The production plant of this shampoo is held in Okara, and the west of Lahore and east of

Multan. Major benefit of this place is not find terrorism. We will put this product at the

right place that will be available at right time in supermarkets, cash n carries, and also in

stores because consumers can buy at any time when they want.

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3.4 Company facilities:

We will initially be leasing 3,000 sq. ft, of a new 10,000 sq. ft building. As needs dictate, our

office and warehouse facilities could be expanded into an additional 2,500 sq. ft.

We will be sharing this facility with another business that is also involved in manufacturing

business. In light of this, we will meet many potential customers simply because of our

association with them.

This location will be consists of a showroom, office space, and warehouse and we will also have

ample parking available.

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Chapter: 4

Product review and service description

• product name is ALLENORA shampoo This product is 7 in1 with hair fall ,dry hair, dull

hair, rough hair, anti dandruff, anti-dandruff with conditioner

• magically puts freshness and bounce back into your hair

• Infusion of Needed Nutrients

• Medicine and Active Ingredients

• There is an added vitamin bonus Availability:

• This shampoo will be available in all the provinces of Pakistan

4.1 Features:

• Anti damage

• Anti dandruff

• 2 minutes oil remove

• Conditioner

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• Strong hair

• Nourishing splits ends

• Long lasting fragrance

4.2 Competitive Review:

4.2.1 Head and shoulder:

Head & Shoulders shampoo is the most popular brand in anti-dandruff shampoos and is

provided by P&G. It is considered as the world’s no. 1 anti dandruff shampoo. It comes in

different categories like:

• Classic clean

• Dry scalp

• Ocean lift

• Smooth and silky

• Refreshing menthol

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• Intensive treatment

• Active support

• Clinical strength

4.2.2 CLEAR:

Clear stands for confidence to provide a healthy, deeply nourished scalp which has a

natural resistance against dandruff and is the foundation for strong and beautiful hair, so

that you feel attractive, confident and ready to boldly engage the world!

• Clear Soft and Shiny

• Clear Hair fall Defense

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4.2.3 Sun silk:

Sun silk is a hair care brand, primarily aimed at women". Sun silk shampoos,

conditioners and other hair care products are sold in 80 countries worldwide. These are

the segments of sun silk

• Think & long

• Soft & smooth

• Black shine

• Hair fall

• Clean & fresh

• Anti-dandruff

4.2.4 Dove:

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• Dove brand’s heritage is based on moisturisation proof not promises grew Dove from a

Beauty Bar into one of the world’s most beloved beauty brands.

• Dove Dryness Care Shampoo

• Clean & fresh

• Smooth and silky

• Long & strong

4.2.5 Identify the competitive advantage

• Black shine hairs

• Skinny hairs

• Long & silky hairs

• Oily hairs

• Straightening and smoothing hair.

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• Anti-Damage and dandruff conditioner

• Soft baby hair

• Color care hair

• Natural shine hair

• Think & long

• Soft & smooth

• Black shine

• Clean & fresh

4.3 Technology:

Technology can affect this shampoo through online purchasing in internet which is new

trend in market so people can buy our shampoo online through our websites and also by

Face book just poke in our page that which type of Allenora do you want? And we will

send our product into your home according to your demand.

4.4 Future product:

We must remain on the top of new products and trends. The most important factor

in developing future product is market need.our understanding of the needs in our market

niche is one of our competitive advantages. Our company is a new in Pakistan. Company

produces a shampoo and distribution shampoo in different cities of Pakistan. After this

product our company will produce a soap and face wash. These soaps depend upon

different flavors.

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Chapter: 5

Market Analysis summary:

The shampoo market in Pakistan was to the tune of Rs.12.5 b in 2012.Unilever still

leading with a 50% market share followed by P&G at 34%.Overall brand-wise position

was as follows:

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Shampoos usage

Sun silk 26%

Head &Shoulders 19

Pantene 15

Lifebuoy 15

Bio-Amla 10

Clear 7

Extension of Lifebuoy into a daily usage shampoo for the lower tier came to the rescue of

the company for volumes. However, clear-as an anti-dandruff shampoo. Slowly the brand

has transitioned towards a bi-gender shampoo used both by male & females. With the

promise “dandruff does not return with Clear, it is still struggling to grip-on to a sustained

position against Head & Shoulders.

Head& Shoulder featuring Karina as its brand ambassador right from the start very

intelligently maneuvered its USPs from mustard oil, coconut and currently fragrance to

lead from the front. Incorporating Saif Ali Khan at the right moment, H&S has very

successfully coined the essence of the - anti-dandruff shampoo-to a daily usage brand.

.

5.1 Market Segmentation:

5.1.1 Demographic Segmentation:

• The largest segment for this entire industry is women .This product is both for women

and men but mainly this product is designed for women because women want to look

pretty.

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• We segmented this product in income level also ALLENORA shampoo targeted those

customers who have low income.

5.1.2 Benefit Segmentation:

We targeted those customers who find the benefits while purchasing any shampoo.

Market segmentation is basically based on consumer preference for a specific product

attribute or characteristic. First this product is 7 in 1 this product has low price and make

strong hairs. Because some customers are interested in two or three benefits, not just a

single one.

5.1.3 Geographic segmentation:

• In this we offer this product in just PAKISTAN and in small and big cities of Pakistan

5.1.4 Psychographic Segmentation:

Psychographic segmentation is also called lifestyle in this we targeted those peoples who

prefer besets shampoo for their hairs in low price who are now very conscious about their

hairs.

• This shampoo is also 2 minute oil remove shampoo in busy life style people haven’t time

for anything there is no need to use shampoo for 2 times even if consumer’s hair is oily.

in this we targeted those consumer those have busy life style.

5.2 Target Market segment strategy:

Our segments definition is in and of itself strategic we are not intending to satisfy all

users of shampoos. But rather those who are just starting out and those who are struggling

to keep up. We can save our customer time and money not so much in our pricing

structure. We will build customer loyalty and word-of-mouth sales that many of our

competitors are lacking.

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5.3 Market needs;

Since our target market is the entry level in manufacturing company of shampoo. The

most important needs are service, price and availability, in the order. One of the key point

of our strategy is to focus on target segments that know and understand these needs and

are willing for us to fulfill those needs.

5.4 Shampoo Distribution:

1 Give away in stores

2 personally hand out at big cities like Lahore Okara Karachi etc.

3 Distribute at rural area of Pakistan

5.5 Swot Analysis

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5.5.1 Strengths:

• The company has advanced technology and skilled professionals

• ALLENORA shampoo is a highly quality product in terms of hair protection.

• The target market is middle class.

• Network of distribution is wide.

• Availability of product in different sizes

5.5.2 Weakness:

• Competitor has strong promotional activities.

• Customers are offered better alternatives by the competition.

• The position of another brands.

• Lack of brand awareness

5.5.3 Opportunities:

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Population expanding at a rapid rate

• Consumers are becoming more quality conscious

• Anti-damage ,anti-dandruff and conditioner are another area where Allenora

• company earn huge profits

• High rates of imported shampoos

• Heavy investment in the research of shampoos

5.5.4 Threats:

• economic factors

• rapidly increase in price of raw material

• Possibilities of new market entries.

• High rate of competition

Chapter: 6

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Marketing environment

• The marketing environment is a marketing terms and refers to factors and forces that

affect a firm’s ability to build and maintain successful relationship with customers .

6.1 Components of marketing environment

Micro environment

Macro environment

6.1.1 Micro environment

• The marketing-environment affects the organization directly. It refers to the environment

that mostly closely linked to the firm

.This environment is also not under the full control of business.

6.1.1.1 Company:

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In designing marketing plan the company must take other group into their account the

companies have to keep good relationship with R&D with top management, with finance

department.

6.1.1.2 Customer:

Our product will be valuable for customers because we develop this product according to

their need and want it has all better quality of material which has other shampoo. But we

compare this product to other’s its price is quite lower than other shampoo. We have to

create strong relationship with the customer through giving the best quality and different

features. We targeted consumer markets who buy shampoo for personal consumption.

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6.1.1.3 Supplier:

Our shampoo Allenora is not very expensive but if we want to manufacture our quality

image so its depend on our suppliers performance .

We treating our suppliers like a partner to supply our product in all area which is critical

to company’s start-up success

6.1.1.4 Public:

• Public is any group that has potential to effect organization’s ability to achieve goal.

• Financial public: we have to maintain credibility or strong relationship with financial

institutions because in this way we can get funds and loans this will help in the

production or promotion of ALLENORA.

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6.3 Macro environment:

• The conditions that exist in the economy as a whole, rather than in a particular sector or

region. In general, the macro environment will include trends in gross domestic product

(GDP), inflation, employment, spending, and monetary and fiscal policy. The macro

environment is closely linked to the general business cycle, as opposed to the

performance of an individual business sector.

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6.3.1 Natural Environment:

Natural environment can affected because of Unavailability of water, chemicals for e.g.

Sodium chloride that is used to thicken the mixture, glycerin that works as a preservative

and other ingrediance which prevent fungal and bacterial spoilage and oil. If we didn’t

get this thing from natural we can’t produce shampoo with different features and best

quality. If we recycle the raw material we can save the natural reserves.

6.3.2 Economical:

• Consumers are taking interest on our product and increasing their purchasing power and

spending patterns

• We launch new product in shampoo industry which is focusing more on low budget

shampoo in the market.

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6.3.3 Demographical:

• Demographical environment can also affect. Increase in population large amount of

population can purchase this shampoo. Wide distribution network in cities areas of

PAKISTAN, all PAKISTAN can purchase this shampoo where they want in PAKISTAN.

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Chapter: 7

Strategy and Implementation Summary

7.1 Market segment:

In which segment we got the better response of consumer and in which segment we can

earn more and in which segment we can satisfying the customer basic needs and wants.

We selected damage and dandruff.

• Black shine hairs

• Skinny hairs

• Long & silky hairs

• Oily hairs

• Straightening and smoothing hair.

• Damage and dandruff

• Soft baby hair

• Color care hair

• Natural shine hair

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7.2 Marketing Mix

7.2.1 Product:

This product is good because we are providing 1 solution of measure 6 problems and 1 is

conditioner means this is 7 in1.it is 2 minutes oil remove shampoo wtih long lasting

fragrance with these qualities at a low price.

7.2.2 Price:

This product is affordable just 60 pk of 100 ml, ,200 ml about 120RS, 400 ml about 240

RS and 5 ml about 3 rupees in this we targeted middle class people.

7.2.3 Place:

The production plant of this shampoo is held in Okara. we will put this product at the

right place that will be available at right time in supermarkets cash and carries, and also

in stores because consumers can buy at any time when they want.

7.2.4 Promotion:

We will use celebrities in product promotion ,free sampling bill boards and sign boards

of ALLENORA SHAMPOO. and also advertisement in television at prime time for the

public because these things will give awareness about the product.

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7.3 Market Differentiation and positioning

(Competitive advantage)

7.3.1 Differentiation:

This product is less than all leading brands and this product is 7 in 1 there is no one any

product that have damage free+ anti-dandruff+ conditioner. this problem is common in

Pakistan everyone have dandruff in hairs and almost everyone hair is damaged beacuse of

using straightner dryer, and this shampoo is 2 minute shampoo for removing oil and this

is high affordable shampoo. This shampoo giving long lasting hair fragrance.

7.3.2 Positioning:

The desire of the customer is basically they want their hairs strong means damage free

and free from dandruff we create position in the mind of customer that this is the product

they want this is the whole product for them. Allenora shampoo will satisfy their needs

ALLENORA shampoo at a affordable price a mild shampoo which reparis hair damage

and give fragrance and shine with conditioner to their hairs.

7.4 Identify the competitive advantage

• Black shine hairs

• Skinny hairs

• Long & silky hairs

• Oily hairs

• Straightening and smoothing hair.

• Anti-Damage and dandruff conditioner

• Soft baby hair

• Color care hair

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7.4.1 Choosing the right advantage

We offering the good advantage then others anti dandruff and anti-damage of hair is a

basically problem of everyone dry hair,hair fall,rough hair,hair fall,nourishing splits

end,conditioner,2 minutes oil remover with long lasting hair fragrance. it is a good

advantage that we are offering no one giving these advantages in one product or

shampoo.

7.5 Positioning statement

• ALLENORA is for hair conscious people providing anti-dandruff, anti damage and

conditioner.

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Chapter: 8

Management

Organization is the key to operating a successful and orderly business. Each person in the

company must know his role within the organization and must be cognizant of the chain of

command. Organization structure is visually demonstrated through organization charts. An

organization chart shows the chain of command of the company The proper flow of

responsibility from the top of the organization down to the bottom is essential for the company to

run in an efficient manner.

8.1 Management Summary:

We are a small company owned and operated by iqbal and irfan are brothers.

8.1.1 Muhammad Iqbal- President:

Iqbal will be the main salesperson. He will also be responsible for shipping and receiving,

inventory management, and the marketing and promotion of products.

8.1.2 Muhammad Irfan – corporate secretary:

Muhammad Irfan will maintain the company records and be in direct communication with the

accountant and other advisors. He will also be in charge of the computer system and perform all

of the desktop publishing for the company. He will assist as needed with sales, shipping and

receiving, and customer service related issues. In addition to her regular duties, Irfan will be

doing internet marketing from his office at Zapotol Manufacturing company.

8.2 Management Team:

Iqbal and Irfan not only have the desired to succeed, but will bring a wealth of knowledge and

experience to the Zapatol manufacturing company team. They have nearly thirty years of

combined experience in the shampoo industry and have both performed nearly all facts of daily

operations for a shampoo business.

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8.3 Management Team Gaps:

We depend on professional, particularly our CPA, for some key management help. We have

retained a local CPA to help us with financial and business management questions since we

don’t have strong background in those areas. Also, we are short on experience concerning human

resources issues; however, we plan on utilizing our network of business associates to advise us

when the need arises.

8.4 Personal Plan:

Our personal plan is maximize productivity and minimize the labor burden on the company.

8.5 Human resources management

Positions Required staff Monthly salary Total salary

CEO 1 35000 35000

Marketing

manager

1 17000 17000

Account officers 1 15000 15000

Marketing staff 2 13000 26000

Labour 7 7000 49000

Security guard 2 5500 11000

Total 14 92500 153000

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Chapter: 9

Financial Plane

Salaries and rent are the two major expenses, while depreciation is another significant cost that

will increase as the company.

• our project investment is about 22500000 crore.

Projected income statement

Description Year 1 Year 2 Year 3

Revenue 8700,000 95,70000 11005500

Less: cost of good sold 2500,000 2750000 3025000

Gross profit 6200,000 6820000 7980500

Less: operating expenses

Salaries 18,36000 1927800 2024190

Administrative expense 284000 298200 313110

Marketing expenses 500,000 550000 605000

Operating profit 3580,000 4044000 5038200

Non-operating expenses

Interest expense 358000 404400 503820

Office rent 40,000 42000 44100

Company rent 250,000 262500 27825

Net profit before taxes 2932000 3335100 4462455

Less: taxes(18%) 527760 600318 803241

Net profit 2404240 2734782 3659214

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Projected balance sheet

Description Year 1 Year 2 Year3Cash& bank 15000000 17500000 20000000

Raw material 0 0 0

Finished good 0 1000000 500000

Account receivable 0 2500000 700000

Total current assets 15000000 21000000 21200000

Fixed assets:New machinery 30,00000 3100000 3200000

Less: depreciation 0 310000 320000

Office equipment 200000 50000 65000

Total fixed assets 3200000 2840000 2945000

Total assets 18200000 23840000 24145000

Description Year1 Year2 Year3Other liabilities 1500000 2000000 100000

Long term liabilities 2500000 6340000 3145000

Equity 14200000 17300000 20000000

Total liability+equity 18200000 23840000 24145000

Survey form

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Introduction: We are the student of BBA (Hons). We are making a business project.

Our project is Allenora shampoo so kindly you give us some information.

Name: _________________________________________ Gender: ______________________

1. How much you like shampoo in your daily life? Usually Seldomly Both

2. Are you satisfy with available quality of shampoos in market?

Yes No Don’t know

3. How much you monthly spend on shampoos? Rs.1000 Rs.3000 Rs.2000

4. What packing of shampoo do you prefer most? Sachet Bottle Pack Both

5. What kind of shampoo you would like? Hair therapy antidandruff Dull hair

6. You use shampoo for what purpose? Silky and shiny antidandruff Damage hair

7. What kind of advertisement will useful for our business?

Newspaper TV FM

8. best location for our project Renala Khurd Okara Any other

Market Survey Analysis

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ALLENORA SHAMPOO

Survey form

Introduction: We are the student of BBA (Hons). We are making a business project.

Our project is ALLENORA SHAMPOO so kindly you give us some information.

Name: _____________________ Gender: ______________________

1. How much you like shampoo in your daily life?

Usually

75%

Seldomly

15%

Both

10%

2. Are you satisfy with available quality of shampoo in market?

Yes

50%

No

51%

Don’t know

17%

3. How much you monthly spend on juices?

Rs.500

60%

Rs.3000

10%

Rs.2000

30%

4. What packing of shampoo do you prefer most?

sachet

49%

Bottle Pack

50%

Both

55%

5. What kind of shampoo you would like?

Hair theraphy

55 %

antidandruff

30%

Dull hair

15%

6. You use juice for what purpose? Silky and shiny

42%

antidandruff

32%

Damage hair

16%

7. What kind of advertisement will useful for our business?

Newspaper

10%

TV

71%

FM

9%

8. best location for our project Renala Khurd

18%

Okara

68%

Any other

14%

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