School enterprise Challenge Business Idea · PDF fileThe data analysis shows ... Camlin Recycling ... Section D: SWOT Analysis 5. This is our SWOT Analysis. Strengths

1 SILVER Business Plan Template 2017. ©Teach A Man To Fish

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And

Neo Creo- intelligently designed

DAV PUBLIC SCHOOL

SRESHTHA VIHAR, DELHI

INDIA

BUSINESS PLAN

Written by - Archit Malhotra, Riya Manchanda, Akansha Sharma,Shriya Poddar,

Pearl Bansal, Gunjan

MS. SIMI RAJESH

CREATED AS PART OF THE SCHOOL ENTERPRISE CHALLENGE AWARDS PROGRAMME – SILVER LEVEL

Section A: Our Business Details

Business Name Neo Creo- intelligently designed

Business Activity Manufacturing (Recycling)

Main product / service

Crayons and Candles

No. of students involved in business

planning activities (including writing this

Business Plan)

Boys: 5 Girls: 15 Total: 20

Financial Summary

Our Local Currency is:

__Rupees____ US Dollars $

Period of time budgeted for 3 month

Total Income (Estimated) 9000 140.98

Total Direct Costs (Estimated) 3860 60.46

Gross Profit (Estimated) 5140 80.52

Total Indirect Costs (Estimated) 310 4.86

Net Profit (Estimated) 4830 75.66

Start-Up Costs (Estimated) 2765 43.31


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Section B: Market Research and Target Market

1. Here is a description of the Market Research done by us, including how many people we spoke to.

The market research was done with our existing customers with the objective of collecting feedback about the products (crayons and candles) of Neo Creo. A sample of 50 respondents (Our customers – students, parents, professional) was randomly selected. The questionnaire comprised of 10 multiple choice questions, where the respondent had to tick the option according to his/her experience. Once the data was collected the same was tabulated, presented and finally analysed and interpreted so that useful conclusions can be drawn for future production and sale.

2. These are the results of our Market Research, including who is going to buy our product/service and why they will buy it. (The questionnaire, data tabulation and presentation in the form of graphs and pie diagrams are attached in the appendix section.)

The data shows that out of 50, 13 respondents have always purchased our products while 31 respondents have purchased our product sometimes. The remaining 6 respondents have never purchased our products. It shows that most of the respondents have either regularly or sometimes purchased our products thus it shows that we have a market for our products and that we should continue with our project/ enterprise of manufacturing crayons and candles with especial demand for candles.

Since only 44 respondents out of 50 had purchased our products. The data analysis shows

that out of 44 respondents 13 respondents purchased our products for personal use, 3 for professional work, 21 for school activities, 5 for gifting & 6 for any other respectively. This shows that most of the respondents were using the products either for their hobby activities and for school activities. Two of the respondents had selected more than 2 options hence the total of 46 is being obtained. Hence we can conclude that most of the users have used our products either for their school activities or for their hobbies like drawing etc.

Out of 44 respondents, 29 of them purchased our products for self consumption while 7 for

kids, 5 for friends as a gift and 3 for other reasons. This shows that most of the respondents are the actual consumers of our products and have themselves used the products thereby giving us a first hand information/ feedback about our products.

When the respondents were asked about the number of packs they bought. 19 respondents

replied 1box/pack, 20 said 2 packs and 5 of them bought more than 3 packs. Hence we can conclude that on an average the customers have purchased atleast 2 packs and the demand for our products exists in the market and we can capitalize on this demand in future and increase our market share as well as profits. In India people celebrate festivals with lighting of candles/ lamps as it is considered auspicious especially during Diwali there would be good demand for our candles.


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The products of Neo Creo were put on sale through our school bookshop, enterprises stalls etc.. Around 21 respondents purchased our product from school bookshop, 18 from Enterprises stalls, 6 from local shops respectively. This shows that our customers prefer buying our products from the school bookshop as well as enterprises stall regularly. Hence we can supply our products through the enterprise stalls and school bookshop as our customers are concentrated in and around the school.

The respondents were asked about the price of the products, 28 respondents out of 44 were in

favour of the opinion that the product are priced reasonably while 8 respondents said maybe and 5 said that the products were not reasonably priced while 3 respondents were not sure of the pricing. Thus the results show that most our customers believe that the products are reasonably priced and we may continue with the current pricing even though a few customers need certain promotional incentives.

The respondents were asked about the non-conventional shape of the crayons. Out of 44, 38

respondents were satisfied with the unique shape of crayon while 4 respondents were not happy whereas 2 respondents were not sure. This shows that the unique and non-conventional shape of the crayons is in demand and acceptable by the customers and we may continue with the non-conventional shaped crayons.

The respondents were asked about the problem faced while using our products. Out of 44

respondents 23 stated that they faced no problem, while 4 said they were fragile, 9 said the crayons were difficult to hold while 4 said the crayons were difficult to blend and 5 said the crayons were less smooth.. Hence we can deduce that we need to work upon the size, durability of the crayons to make a satisfied customer base even though most of the customers were quite satisfied with our products. A respondents selected more than option hence the total in the table reflects 45.

The respondents were asked to rate our initiative of Recycling discarded crayons. Out of 44, 25 respondents rated our initiative as Very Good, 18 rated it as Good while 1 respondent had no interest in the rating. Hence we can deduce that almost all the respondents appreciated novel idea of recycling as we adhere to the dictum - Reduce, Reuse and Recycle whereby we not only pay attention to the land pollution caused due to the disposal of unwanted crayons but also encourage Recycling.

On asking about the probability of buying our products in future, 34 out of 44 respondents said

they will certainly buy our products while 10 respondents said may be and none of the respondents said NO to future purchase. Hence this proves that the customers are very happy with our initiative which would ensure a ready market for our products.

Conclusion – The feedback survey has enabled us to know the likes and dislikes of our

customers. The various changes that we need to bring in our products so that we have a satisfied customer base. Since our customers are concentrated in and around our school we need to use new methods of promotion like pamphlets/ flyers, posters etc to attract more (new) customer. There were a few problems with respect to the size of crayons as adults found it difficult to hold which we would overcome in the next batch of products. We would like to mention that our Neo Creo Enterprise is working on the right path of Environment protection and doing its bit in the field of sustainable development along with the earning of monetary gains (profits) through sale.


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Section C: Competitors and Competitive Advantage

3. These are our main competitors and their strengths and weaknesses.

Competitor Name

What basis will we be competing with them on? Price, quality, location?

Strengths

Weaknesses

Camlin Recycling (sustainable development)

Market acceptability

Good reputation

Multiple shades of crayons

Huge investment

Capital intensive technology

Enjoy Economies of scale

Diversified product range - sell other stationery items like pencils, erasers notebooks etc

Good channel of distribution hence better reach.

Expensive

Do not recycle.

No focus on sustainable development

Crayons have the conventional shape of a colour stick.

Doms

Faber Castell

4. Our competitive advantage – This is why we are going to be better than our competitors:

Conservation and Collaboration is what the need of the hour is and our product focuses on this concept. Our product is a reasonably priced, environment friendly crayon available in different shapes and sizes which ensures sustainable development. We would be selling our product through a stall of our own in our school premises which would not only sell crayons but products made out of recycled crayons like decorative candles. Our enterprise is an initiative to make the planet a better place to live. We would be collaborating and collecting raw material (discarded crayons) from the neighbourhood schools. This would not only provide our enterprise with a regular supplier but also a ready market for our finished products. Where our competitors focus only on exploiting earths’ resources for their profit motive, we through our initiative are going to follow the principle of ‘Reduce Reuse and Recycle’ thereby solving the problem of land pollution. Our crayons and candles are non-conventional in shape available in different shapes and sizes at reasonable price produced using simple machinery and manual labour. Our initiative will not only provide employment to women belonging to economically weaker section but we would also donate a part of our finished product to the children living in slums.


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Section D: SWOT Analysis

5. This is our SWOT Analysis.

Strengths – What are our business’ strengths?

We have a year long experience of running the

enterprise.

We are students of vocational stream who have

in depth knowledge of using equipments like

microwave etc.

Members are good with accounting hence we

will be able to manage our accounts well.

The members are artists who would exhibit

their talent through our products and

packaging.

Start up equipment and raw material is

available for free as these have been donated

by various individuals and organisations.

School classroom is used for running the unit.

All the students and teachers are covered under

the Group Insurance – a safety & security

scheme offered by school to all stake holders.

( copy of insurance attached in appendix)

Deliver bulk orders.

Weaknesses – What are our business’

weaknesses?

Raw material sources are not confirmed hence

quality and standardization may be difficult.

Professional expertise is lacking.

Being a new entrant in the market we might

face difficulty in selling the product.

Limited funds

No heavy machinery.

Opportunities – What opportunities do we have

for our business?

Our stall is located in the epicentre of a

residential area with shopping malls and

complexes.

Schools in the neighbourhood would provide us

both a source of raw material and market

simultaneously.

The stall in the school would allow access to all

the students during the school hours.

Display material and free samples to local

stationery shop will be provided.

Threats – Do we face any threats to our

business?

Well Established brands.

Brand loyal customers – preconceived notions

of the customer about existing brands.

High budget of competitors for manufacturing

and promotion.


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Section E: Operational Plan

6. These are the one-off tasks we will need to do to actually start up/develop our business:

1. Design of product – Our finished product is crayons and candles which would be manufactured by recycling

of crayons. We have been making non-conventionally shaped crayons which would attract our target market

i.e. the children. The design would range from geometrical, creative and abstract shapes. This year too we

are planning to make crayons of various shapes and sizes. Our Candles are decorative candles which have a

demand all the year round but during the festive season esp. Diwali, we have more demand as compared to

other days.

2. Installed machine(s) and equipment/start up equipments - since our enterprise was set up in 2016 the

following equipments are already in place.

Microwave oven ( fixed asset)

Refrigerator (fixed asset)

Trays ( fixed assets)

Vessels (fixed assets)

Furniture – shelves, tables etc. (fixed assets)

Gloves and masks ( Current assets)

A well ventilated vacant room within our school premises is being used to run our enterprise. It is here where

we carry out our production. In order to help us kick start our project two of our teachers donated a sum of

Rs. 3000 for our enterprise last year. We successfully manufactured and sold our products and made profits

3. Production process – collection of raw material – raw material that we require is unwanted, broken and

used crayons which are available for free. The students, teachers, willful donors can donate the unwanted

crayons.

Crayon bin would be placed in classrooms where the donors can drop their crayons. Once a week the

crayons would be collected and would be stored in the room meant to run our enterprise.

4. Sorting of crayons – which would include categorizing them into groups followed by removal of foreign

particles and finally moving them onto the production line.

5. Moulding – the finished product into different shapes and sizes

6. Packaging and labelling – the packaging would be attractive and made from recycled paper which would

carry the name of our enterprise (Neo-Creo) and our logo.

7. Transfer to the point of sale – the channel of distribution would be short i.e. through our stall whereby we

will be able to sell our product directly to our customers. Local shops would also be a part of our distribution

channel specially to cater to customers beyond our school i.e. local community members, students of other

schools.

8. Sale – finished product would be sold to the customer at the point of sale. Provision would also be made to


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deliver goods at the customer’s doorstep if they place a large order.

9. Feedback – customers are the pivot of our firm and customer satisfaction is our moto. To foster the trust in

our product and firm, knowledge of customer needs and expectations are a must. Feedback would be

collected by our PR team both at the point of sale and delivery points

10. Profit – the profits earned from the sale proceeds would be ploughed back into the enterprise for funding

further production.

7. These are the daily, weekly and monthly tasks we need to do to actually run our business:

Task

How long does it take?

How often? Daily/Weekly/Monthly

Who? Who will be responsible

Collection of raw material

1 week Monthly Logistics team

Sorting 1week Monthly Production team

Breaking 2 days Monthly Production team

Processing - recycling 2 weeks Monthly Production team

Packaging 4 days Monthly Production team

Marketing 1 hour weekly Marketing team – PR

Sales 1 hour Daily Sales team

Accounting 1 hour Daily Accounts team

8. Our business team structure – Here are the names and positions of the business team members with a reference if they are teachers/students and our organogram.


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Section F: Marketing and Sales Plan

9. These are our 4 P’s (Product, Price, Place, Promotion) and an explanation of what is new/has changed (if needed).

a) Product – Our product/service is…

Product line comprises of recycled crayons and decorative candles / artifact made from

crayons. This product follows the value addition chain and focuses on environment related

added value.

b) Price – We will sell it at this price:

Price: Pricing a product is a crucial component as it would decide the future of our

enterprise. The pricing strategy that we are following is Market Rate Method in tandem

with Cost Plus Pricing policy. After due market research and cost analysis, the price at which

we are offering our product is Rs. 20/- per pack for crayons and Rs.50/- per pack for candles

c) Place – We will sell our product/service at this place:

Place of distribution: A direct or short channel of distribution would be used to reach to the

consumers. Stall in the school during school hours, special stall during PTMs and inter school

events, fest etc., tie-up with stationery shops in the vicinity. Home delivery would also be

made for large and bulk orders.

d) Promotion – We will promote our product/service by:

Promotion: Promotion in the morning assembling, display boards, word of mouth,

pamphlets, leaflets for parents, events organized during the Inter School Fest- Effusion&

Techesta 2016 (Jingle Making competition), advertising space on school circulars were the

strategies we had followed last year. We would still continue to do the same even this year but

new events like Flyer Designing – Inter School Competition 2017 will also be incorporated

during this session etc.(proof attached in the appendix section)


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Section G: Risk Assessment

10. This is our Risk Assessment Table with the risks we identified that could affect our school business and how we will overcome them.

Risk

Chance it happens (High, Medium, Low)

Level of Impact (High, Medium, Low)

Ways to reduce this risk Person Responsible

Internal Risk

- Absenteeism of

team members.

- Malfunctioning of

Machinery

S Stealing or Misuse

Medium

High

Low

High

High

Medium

Since we students have

to cope up with our

studies and enterprise

work simultaneously, at

times it becomes difficult

for us to work in the

enterprise. Hence the

problem of absenteeism.

We will try to mitigate

this problem by preparing

a duty chart as per the

availability of time

among the team

members.

Since we are using Old

machinery donated by our

school, there is every

possibility that due to

wear and tear the machine

might break down which

may affect our production

process. We have found

out an alternative method

which would facilitate us

to continue with our

production in case of

failure of machinery.

The problem of theft if

any would be handled by

inculcating a sense of

responsibility among the

team members and

keeping a strict check on

people who are visiting

the enterprise. Stock

register would be

maintained to have a

complete account of the

raw material, work in

progress & finished

goods.

Logistics

team

Production

team

Logistics

team


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External Risks

- Change in taste

and Preference of

customers.

- Fall in

Purchasing power

of customers

- Parents of the

Team members

may be concerned

about their ward’s

Academic

performance and

hence it would

affect the

functioning of the

enterprise.

High

Low

Medium

High

Low

High

The biggest risk that any

firm faces is the change in

the taste and preferences

of the customer. We will

mitigate this risk by

bringing in innovative

designs and shapes in our

products.

Fall in purchasing power

of our customer is less

probable but by being

realistic we may adopt the

policy of deferred

payment for our credible

customers.

The parents would be

counseled and convinced

about the positives of our

initiative and further the

working hours would be

(preferably) free periods

and after school. Extra

classes would be held to

keep the team members

abreast of the academic

syllabi.

Marketing,

promotion

and Public

relations

team

Marketing,

promotion

and Public

relations

team

Teacher

coordinators


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Appendix Section: Students in Action

Please find in this space 3 pictures (when possible) that clearly show our involvement as students in our business planning activities.

Brainstorming session by Team Neo Creo


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http://www.sreshtha.org/events.htm# (for reference)

Promotional activities – Flyer Designing Competition during Inter School Fest

http://www.sreshtha.org/events.htm


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Samples of the Feedback Survey conducted from the respondents (customers)


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Presentation of Data collected and tabulated from the feedback Survey


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# General Insurance policy for the safety of students and staff members.

# Neo Creo team members working in the enterprise.


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FINANCIAL PLAN

1. Income (estimated) -

NAME OF PRODUCT OR SERVICE

QUANTITY SALES PRICE SALES INCOME (Quantity x Sales Price)

Crayons

200

20

4000

Candles

100

50

5000

TOTAL SALES INCOME 9000

2. Direct Costs (estimated)

NAME OF ITEM QUANTITY COST PER ITEM

TOTAL COSTS (Quantity x Cost per Item)

Discarded crayons

20 Kg

0

0

Jelly 4 kg 240 960

Gloves

1 pack/ box 225 225

masks 1 pack/ box 250 250

beakers 10 0 0

dusters 5 0 0

Packing material 300 packs 4 1200

Thread and eyelid 10 packs 2 20

Candle mould 200 6 1200

TOTAL DIRECT COSTS 3860

3. Gross Profit (estimated)

Our Local Currency

TOTAL SALES INCOME 9000

TOTAL DIRECT COSTS 3860

GROSS PROFIT (Total Sales Income – Total Direct Costs)

5140


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4. Indirect Costs (estimated)

NAME OF ITEM QUANTITY COST PER

ITEM TOTAL COSTS (Quantity x Cost per Item)

Posters and banners

1 100 100

Flyers / pamphlets 100 1 100

Transport charges 110 110

TOTAL INDIRECT COSTS 310

5. Net Profit (estimated)

Our Local Currency

GROSS PROFIT 5140

TOTAL INDIRECT COSTS 310

NET PROFIT (Gross Profit – Total Indirect Costs)

4830

6. Start-Up Budget (estimated) Our Start-Up Budget is the costs of the Equipment and Supplies that we will need to start/grow our business.

a) Equipment Start-up

EQUIPMENT (Fixed Assets)


TOTAL COST (Quantity x Cost per Item)

Microwave oven

1 0 0

refrigerator 1 0 0

trays 6 0 0

New moulds 2 300 600

Furniture and fittings 0 0

TOTAL EQUIPMENT 600


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b) Equipment we don’t need to buy as we own/have access to: Most of the fixed assets mentioned above (except the new moulds) are already present in our enterprise hence we do not need to buy them. These equipments were installed in the enterprise in 2016 and are very much functional. We would utilize these assets for the production activities this year too.

c) Supplies & Expenses Start-up

SUPPLIES & EXPENSES START-UP (Variable in nature)


TOTAL COST (Quantity x Cost per Item)

Discarded waste crayons

10 kg 0 0

Jelly 2 kg 240 480

Mask 1 pack of 100 pieces 250 250

Gloves 1 pack of 100 pieces 225 225

Thread and eyelid 5 packs 2 10

Packing material 150 4 600

Candle mould 100 6 600

TOTAL SUPPLIES & EXPENSES START-UP 2165

Equipment Start-up costs + Supplies & Expenses Start-up costs = Start-Up Budget costs

Our Local Currency

Equipment Start-up 600

Supplies & Expenses Start-up

2165

TOTAL START-UP BUDGET 2765

d) We will raise the Start-Up capital needed for our business by: The capital investment Rs. 3000/- (approx) needed this year to run our enterprise would be invested from the profits earned from last year’s sale proceeds. Last year (2016) our firm earned a profit to the tune of Rs. 6000 (approx) of which a part of the profits was donated to a blind school and the remaining would be ploughed back for the running of the enterprise. This ploughing back of profits has enabled us to learn that how are the future expenses of any business enterprise met by the internal sources of funds and has inculcated the habit of thrift among the team members. Additional comments: During the future course of our enterprises’ functioning if we need funds then our head of the institution (Principal madam) has assured us a donation to the tune of Rs.5000/- to facilitate the smooth functioning of our enterprise.


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Your opinion matter to us and we want to make sure the Awards Programme works for you. Please ask your teacher to fill in the following section. ONLY SCHOOLS THAT COMPLETE THIS SECTION WILL BE ELIGIBLE FOR AN AWARD. Please choose ONE option in each row.

A. STUDENTS’ IMPROVEMENT ON SKILLS After going through the activities to develop the Business Idea and Plan do you feel your students...

Did not improve

Stayed the same

Improved

1. Are more confident speaking in front of other people (e.g. during market research)

2. Work better with people with different opinions to theirs 3. Have improved their team working ability, e.g. if other team

members were struggling they offered support to them

4. Are more confident analysing information 5. Are more able to use their ideas to organise and plan work in

order to reach their goals

6. Are more able to look at different ways to solve a problem and are more confident in selecting a solution

B. YOUR OPINION ON THE SCHOOL BUSINESS PLANNING PROCESS

1. Through the school business planning process, which skills do you think students improved/gained the most (max 3):

Leadership Communication Aspiration

Confidence Decision making Other – Please specify:

Problem solving Team work

2. Do you feel the activities helped students improve their performance in other subjects at school? You can choose more than one option.

No Yes, in Science

Yes, in Maths Yes, Other – Please specify: the students have improved their ability to maintain accounts after having maintained the stock register, cash book, sales register etc. They have also become proficient in the handling of raw material and operating the machine.

Yes, in Writing & Reading

Our Local Currency used :

Rupees

Exchange rate to US Dollars: as in August 2017

1 $ =63.84 ₹


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3. Have the students used the skills learned through the school business planning outside school?

No

I don’t know

Yes – Please specify: The students are able to manage and participate in various events, competitions like debates, ad-mad shows , pamphlet designing etc. The students who were a part of the enterprise last year have trained their juniors and made them confident in various aspects of running the enterprise.

CONGRATULATIONS on writing your Business Plan! You can now GET STARTED and put all your learning into action! Now is the time for you to actually run your business! Remember to submit your completed business plan to the School Enterprise Challenge Awards

Programme by logging in to your account at: www.schoolenterprisechallenge.org/login

http://www.schoolenterprisechallenge.org/login

Documents

School enterprise Challenge Business Idea · PDF fileThe data analysis shows ... Camlin Recycling ... Section D: SWOT Analysis 5. This is our SWOT Analysis. Strengths