Paper bag Business

Group Members:Rozmin Mansoor Ali 16138Shabila Ashraf 15660

Fashionable trendy look with Eco friendly bags…

TeamShabila Ashraf: MBA Majors in Finance from IOBM, Currently working as an Business Support officer at JS BANK .Rozmin Mansoor Ali: MBA Majors in Finance from IOBM, Currently working at Aga Khan University as an Senior Assistant at Finance Department

Initial IdeaThe idea was to start a paper bag business, we find the people are more concerned about the environment and there is a big opportunity for this business

Introduction

Market Size Retailer shop usage per week: 40kg per week ( 1kg =1000 therefore 40kg =40000) Per month 4 weeks (40,000*4=160,000 Plastic bags) Per day =160,000/30=5350 rounded off figure We surveyed three shops . Gulshan (Kamran Market ) This is the calculation for plastic bags and we are replacing plastic

bag with paper bag so consumption of paper bag compare to plastic bag must be low due to we are new entrants in the market.

Approximately we are assuming w would sale around 50,000.

Lessons LearnedGoing out of the building is first thingImprovements in the product after getting feed back from customers/users.Environmentally beneficial products or socially responsible. Harness our growth potential and sustain profitable growth.Qualified and experienced employees. Competitive pricing. Communicate with our clients through the website.

So Here’s what we didOur Facebook Page https://www.facebook.com/Fashionable-Trendy-Look-with-Eco-Friendly-bags-164425740633452/home

Second Market Survey Office(40) Shopping Malls (20) kamran Market, Atrium mall, Allah Wala

Market, Jama Cloth Centre, Millennium) Whatsapp Group( 35 ) official groups, friends groups, Social

Groups Whole seller(15) Empress Market, Bolton market, Paper

Market( Pakistan Chowk) Retailers(15) Face Book page (30) Individuals – University Students (40) Big Buildings- Shaheen Complex,Forum (30) Events- Frare Hall-50 (3 day event recently held on 12th august

to 14th August ,2016) Approximately 300 customers visited – and feed back is quite

positive.

Cost structure, Break even calculation & Forecasted Income

statement. Raw material cost Delivering cost Website maintenance cost Apps development cost Marketing cost

Forecasted Income statement explains in detail

First Month Income Statement

Second Month Income Statement

Third Month Income Statement

Here’s What we Found……………Feed Back

Organization Level

Whole seller Level

Retailer level

Individual level

Organization level Different peoples (40 peoples) interview and their feed

back taken on paper bag uses. Its good for environment They mostly use paper bags for carrying things They specially don’t buy for use they reuse the paper

bags they received from shopping malls It gives a good look the printed paper bag gives the option of branding,

promotion.

Wholesale level Wholesale shops are ready to sell our products the only

thing they ask us is to make sure that you will be in a position to complete bulk quantity orders , also they need some commission or incentives from us for being motivated and discounts In bulk quantities for their customer.

We visited ,Whole seller(15) Empress Market, Bolton market, Paper

Market ( Pakistan Chowk)

Retail Level Around 15 shops visited in different shopping malls People are more attractive towards paper bags in these

days. Every one knows that plastic is not safe for environment It gives customers cool look Customers feel important if the shopkeeper use plastic

bags instead of paper bags. We visited Kamran Market, Allah Wala market, Jama Cloth Center,

Atrium shopping mall, Gold Mark one and two. The reason of choosing small shopping malls is that big

malls already shifted fro plastic to pear the need t convenience small market before going to mainstream market.

Individual Levels As a individual customer we don’t have opportunity

to capture big market, but yes if we customized our products according to customers demand we can cator this market also.

They are more responsible ……………..Environment Fast people ………………………Busy people don’t have

time to shop they do online shopping they need ease …………………….Availability, Look ,

Fashion with less effort. We Visited University students, Normal customer of shopping

malls, stores.

Also we took feedback from event (Azadi )

What did we learn. It’s a big opportunity for us, we find it difficult in start but after

feedbacks, surveys……….we successfully executed our business. 2. Whether you think this a viable business.

Yes this is a viable product not only viable it have a big opportunity for creating awareness , In

3. Whether you want to purse it after the class Already took a one step…………at azadi fest16 held on 12th to 14th

August at frere hall……………….we sold 50 paper bags(25 rs. Per bag total sales revenue 1250 with positive customer feedback cot of production 15*50=750

1250-750=500 (Profit)