A PROJECT REPORT ON FUN-LEARN

[A Project Report submitted by in partial fulfillment of the requirements of the degree of MBA (Full-time) of Dibrugarh University and approved by AICTE]

Submitted By: Suman Gill MBA 2nd SEM (A) Roll no-65

Submitted to: Mr. Samannoy Baruah Assistant Professor, NERIM

NERIM Padmanath Sarma Bhawan, Joya Nagar, Khnapara Guwahati-781022

PREFACE
The project report is an integral and a basic part of the education being imparted to students. The submission of this project report is a part of the Entrepreneurship Development course paper in 2nd Semester curriculum of the 2years (full time) course of Master of Business Administration, affiliated to Dibrugarh University, approved by AICTE. Knowledge gained from books is of much help only if it can be practically applied in the real work situation. This project gave me a firsthand experience to apply my theoretical knowledge gathered from the subject, in practical usage. The project entitled A Project Report on FUN-LEARN is related to the use of some musical rhymes to be played at the touch of a button in a soft toy.

ACKNOWLEDGEMENT
Preparing a project of this nature is an arduous task and I am fortunate enough to get support and encouragement from a large number of persons to whom I shall remain thankful forever. To begin with, I would like to thank Mr. Samannoy Baruah, our project guide, for his constant support and help in the preparation of this entire project report. I would also be grateful to Mr. Jiten Kalita, the librarian of Indian Institute of Entrepreneurship, Guwahati for his help in guiding us with different books to complete the report. I would also like to thank my friends Priyanka Sharma (MBA, Auro University, Surat) and Azima Parwin (MBA, NERIM, Guwahati) for guiding me with the problems faced in the completion of this project report. And lastly, I would thank my parents who made me realize the power of music in the journey of learning process and the benefits of how it can help in the developmental stage of a child and thus help me in developing the concept of FUN-LEARN.

DECLARATION
I, Suman Gill, a student of NERIM, affiliated to Dibrugarh University and approved by AICTE, hereby declare that the project, to the best of my knowledge and belief, is an original piece of work and it is the outcome of my own sincere effort and has not been submitted, either in part or in full, to any other institute or University for the award of any Degree or Diploma.

Signature:

Suman Gill

CONTENTS
1. EXECUTIVE SUMMARY 1

2. ORGANISATION SUMMARY

3. PRODUCTS SPECIFICATIONS AND DETAILS

4. MARKET ANALYSIS SUMMARY

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5. FEASIBILITY STUDY

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6. MANAGEMENT SUMMARY

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7. PERSONNEL PLAN

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8. FINANCIAL PROJECTIONS

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9. CONCLUSION

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1.0 EXECUTIVE SUMMARY

1. Title of the Project 2. Name of the firm 3. Location

: A Project Report on FUN-LEARN : FUN-LEARN : 1st floor, Geeta Bhawan, Makum Road, Tinsukia

4. Contact number

: 9435745846 9706582191

5. Form of Organization: 6. Name of the proprietor 7. Qualification 8. Work Experience 9. Family background

: Sole Proprietorship : Suman Gill : BBA (Finance) :Nil : Mr.G.S.Gill, father, is a businessman and Mrs. Jyoti Gill, mother, is a house-maker.

10. Total Capital Investment 11. Source of finance 12. Rate of Return 13. Break-Even Point 14. Primary Objective

: Rs. 7, 59, 000 : Self-financed : 48.86% : 48.39% : To help growing kids learn rhymes and tables with audio-visual aids in a playful manner.

15. Secondary Objectives

: a. To create a profitable company. b. To develop innovative, educational toys. c. To improve the learning curve for children through the use of interactive toys. 1

2.0. ORGANISATION SUMMARY

2.1 INTRODUCTION 2.2 OWNERSHIP 2.3 ORGANISATION LOCATION 2.4 LEGAL FORMALITIES & DOCUMENTS 2.5 START-UP REQUIREMENTS

2.1 INTRODUCTION
Fun-Learn is an exciting start-up company that has developed a line of educational toys and tools for children that are fun and engaging. The organisation has been founded by Suman Gill and is a sole trading concern. Fun-Learn will be profitable by the end of year one and will have a steep increase in sales for the first several years. Fun-Learn is initially offering three different educational toys. The first is a Soft-toy, a fun toy that has a sound chip installed in it which has been customized in such a way that rhymes get played when this toy is pressed hard.. The second product is Fun-Disk which helps children quickly conquer the alphabets as well as learn tables and rhymes with the help of animated videos. The third product is a jigsaw puzzle, a device that resembles that helps in better eye-hand co-ordination and also helps in developing the problem-solving skills in the child. While all the products are educational tools that develop core skills within the youngster users, the soft-toy and jigsaw puzzle are fun to play with, thereby encouraging tots to use them often. Fun-Learn has identified three keys to success that are instrumental in the sustainability of the business. Number one is the need to develop creative, educational, engaging toys. The second key is to adopt strict financial controls. The last key to success is the need to listen to customer, effectively creating a feedback mechanism for product improvement. Fun-Learn has identified two customer segments that it will go after. The first group is individual customers. These are parents or grandparents who will be purchasing the product for their child or grandchild. The second market segment that will be addressed is wholesale purchasers, typically organizations that are purchasing the products for their clients to use. These organizations are typically some sort of care center or nursery/preschool.

The likelihood of success of Fun-Learn will be ensured by its strong management team, lead by the entrepreneur and also the need to develop and make effective use of idle brain of a developing child.

2.2 ORGANISATION OWNERSHIP

The organization is solely owned by Suman Gill.

2.3 ORGANISATION LOCATION

The organizations office is located in the 1200 sq. ft 1st floor of a commercial building named Geeta Bhawan of at Makum Road of Tinsukia district, Assam. It has a good road transportation facility to all the neighbouring towns and districts and also the place is located near the main market from where raw materials can be easily bought as and when required.

2.4 LEGAL FORMALITIES & DOCUMENTS

The following are the legal formalities and documents required by the company: 1. Trade License from Tinsukia Municipal Corporation 2. No Objection Certificate from landlord

2.5 START-UP REQUIREMENTS

The following items will be needed for the start-up of the business:

Office supplies and equipment for five employees including desks, laptop, cubicle dividers. Assorted equipment for manufacturing soft toys with sound chips such as threads, needles, fabrics, sewing machines, customized sound chips etc., compact disks for fundisk and thick poster board, coloured picture papers, maps, glue, scissors etc. Fax machine, telephones, computers, printers.

3.0 PRODUCT SPECIFICATIONS AND DETAILS

3.1 PRODUCT DESCRIPTION 3.2 MATERIAL REQUIREMENTS 3.3 PPRODUCT MANUFACTURING PROCESS 3.4 PRODUCT BENEFITS

3.1 PRODUCT DESCRIPTION

Fun-Learn wouldl go for producing three types of products which are as follows: 1. Sound chip imbibed soft toys: Soft stuffed toys will be manufactured with smooth fabric and a customized sound chip with pre-loaded nursery rhymes (Jack-and-Jill, Hickory-Dickory- Dock, Twinkle-twinkle little stars) will be imbibed within the soft toys which would look like baby bears, rabbits and dogs. The child can play with the soft toy as well as listen to the rhymes by hitting the toy once. In case, the child wants to stop playing the rhymes and just play with the soft toy, it can do so by hitting the soft toy thrice. 2. Fun-disk: These are compact disks with animated videos showing cartoon characters in a funny way that would help children learn the English alphabets, 20 nursery rhymes and 10 multiplication tables. 3. Jigsaw puzzles: These are jigsaw puzzles for kids with the solar system, maps of different countries cut out in shape of the various states, alphabets to be arranged sequentially as well as posters of various cartoon characters cut out in shape.

3.2 PRODUCT MANUFACTURING PROCESS

1. Sound Chip imbibed Soft toy: a. First, we have to draw a freehand outline sketch of the desired teddy bear on a piece of paper with the marker. b. Now we need to cut out the paper adhering to the shape. It will be our guideline pattern. Then we need to pin it on the fabric and cut out the fabric and make two equal pieces of fabric which can be sewn together. c. Take the reverse side of the fabric, i.e. inside out, and start sewing the pieces together along the edges while leaving a hole for stuffing it with cotton. d. Now fold the exposing side out and start filling it with the quilting cotton along with the customized sound chip. Stuff more than required. Sew the hole after you are done. e. Use black beads or colorful stickers in place of the eyeballs to add life to the toy. Always choose contrast colors to your fabric. You can also cut colored papers and stick in the inner ear of it. If you want its neck to look classy, add frills or ribbons around it. You can further accessorize your bear with sunglasses, hats, jackets, pants as per your choice.

SOUND CHIPS

SOUND CHIP IMBIBED SOFT TOY

2. Fun Disk: To make these customized fun-disks, blank disks shall be bought in lot and self-animated videos of nursery rhymes and multiplication tables shall be written on these CDs and will be lauched as an audio-visual learning aid for children.

NURSERY RHYMES

MULTIPLICATION TABLES

3. Jigsaw Puzzles: a. First, we need to purchase thick poster board stock from a graphics or hobby supply store, balsa wood, or find an old cardboard box to work with. The job will be easier with the poster board or balsa wood, but slightly less expensive with the corrugated cardboard.

b. Next, we shall opt for a thicker piece if working with cardboard. Select a thick piece of cardboard approximately 1 square foot in size and 1/8 to 1/16 of an inch thick.

POSTER BOARD

c. Now, we need to choose an image to apply to the top of the puzzle-in-the-making. The image can be a map, scenery, cartoon characters, animals or even the universe.

d. Next, we need to gather a pair of large, sharp scissors that will easily cut through the board with precision. Old, worn out scissors will make the job sloppy and potentially difficult. For more intricate pieces, a pen knife may work best.

e. White school glue with the required brush applicator shall be used to affix the paper image to the top of the puzzle.

f. Now, to make the puzzle we need to first decide upon the outer shape of the puzzle--do a circle, square or curvy shape

g. Then cut the paper image to fit the piece of poster board/cardboard/balsa wood.

h. Adhere the precisely cut image to the cardboard or wood by lightly coating the base with an even layer of glue. Carefully place the image atop the base, then smooth over evenly.

i. Allow the glue to dry for at least an hour before attempting to cut the puzzle into pieces. 7

j. Draw or stencil over the image of desired puzzle pieces/shapes. It may help to begin with a grid.

k. Cut pieces with your knife or scissors. Do this slowly and carefully.

l. The desired jigsaw puzzle is ready.

PUZZLE OF THE WORLD MAP

PUZZLE OF ALPHABETS IN THE PICTURE OF A HORSE

3.4 PRODUCT BENEFITS

The human brain is divided into two parts-the left brain and right brain-which are specialized in different modes of thinking and perceiving. The left brain is the logical part. It controls speech, words, language. It is methodological and tends to think in step-by-step logical fashion. The right brain is the creative part, it thinks in images and colours, and it can remember complex pictures and songs (music). It thinks in intuitive way rather than logical way. These two half brains do not work like separate department but in an interconnected and collaborating way. The left brain and the right brain exchange information through corpus callosum. The corpus callosum is a thick band of nerve fibers that divides the cerebrum into left and right hemispheres. It connects the left and right sides of the brain allowing for communication between both hemispheres. The corpus callosum transfers motor, sensory, and cognitive information between the brain hemispheres. The left brain controls the right part of the body and the right brain controls the left part of the body. Both the parts of the brain are connected with the help of dendrites. The better the co-ordination between both the parts of the brain the better is the retention and concentration power of the individual. Fun-Learn is a product that aims to develop the co-ordination between the left brain and the right brain of a developing child who, with the help of music, videos and images can both see images and videos as well as listen to music and increase the working of the right and left part of the brain and thus enhance his/her retention power by increasing the dendrite branching between both the parts of the brain. A child with a higher dendrite branching in his/her brain is more likely to excel in all fields of life.

4.0 MARKET ANALYSIS SUMMARY

4.1 MARKET POTENTIALITY 4.2 MARKET SEGMENTATION 4.3 TARGET MARKET 4.4 STRATEGY AND IMPLEMENTATION 4.4.1 COMPETITVE EDGE 4.4.2 MARKETING STRATEGY 4.4.3 SALES STRATEGY 4.5 MAIN COMPETITORS

4.1 MARKET POTENTIALITY

The Indian toy industry is estimated at about 850 million US dollars and until now has generated only 0.5 per cent of the global market. However, the growth of around 15 per cent promises to rapidly raise this figure, especially in the context of the growing middle class and the increasing willingness to spend money on luxury goods. India itself has more than 800 toy manufacturers, exporters and suppliers, which means that 60 per cent of the market is handled by Indian manufacturers and foreign companies with subsidiaries in India. The Toy Association of India estimates that about 90 per cent of the Indian toy industry belongs to the non-organized sector. The Indian toy market is on the highway to growth and has the potential to become one of the largest toy markets in the world. This is due to the high rate of population growth and the increase in GDP and personal incomes. Also, People are getting more aware of the importance of toys in shaping various aspects of childrens development and hence, giving them a holistic growth. Earlier, the market was flooded with imported and cheap toys from China. But, increasing awareness about the health hazards caused by these toys has forced people to away from them slowly. Retailers have now started giving more shelf space to Indian products replacing the Chinese ones, which shows that the market is becoming more favorable towards the Indian manufacturer.

4.2 MARKET SEGMENTATION

The customers or end users who buy their products are basically of two types: (a) Children: Children are the end users for most of their products. They play an influential role in the buying decisions. This group mainly looks for fun and appeal of the product. (b) The parents or guardians: This is the group that actually pays for the product but may not be the end user of the product. They mainly look for simplicity of understanding, ease of use, monetary value changed and educational or creative value. When parents buy the product, it may be for use by their own children or as gifts to others children on various occasions like birthdays.

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4.3 TARGET MARKET

Strategy adopted by the company is based on three important modules: Product, Price and Place. Product: The product range consists of 3S products. These products have a very high standard of quality which is above the market average. The second noticeable thing about these products is their perceived and pay value, which indicates the monetary value of the item. The third strength of the products is their packaging and designing. All these factors put together make their products noticeable on the shelf and fulfill their basic purpose. They have got EN-71 73 certification for the products. Price: The pricing system is cost plus mark up. The company will be following this system in the future too. This ensures their prices to be quite competitive compared to the product quality they offer. Place: Local markets: For the Indian markets they will follow the current system, that is appointing distributors in various cities across the country. These distributors will be responsible to distribute and market their products in their specified territories. This will be for the unorganized and small/local retail shops only. For the large format stores and malls they will distribute directly. This kind of distribution will ensure maximized distribution and also make sure their products are available and pushed through all the retail shops. Slowly they will introduce new clients in unrepresented areas as distributors till their products are available in almost all cities.

4.4 STRATEGY AND IMPLEMENTATION

4.4.1 COMPETITIVE EDGE: Fun-Learn will leverage its educational competitive edge to produce educational toys that are fun to use and at the same time successful at building important skills for youngsters. By recognizing and exploiting its core competencies, Fun-Learn will quickly gain market share as well as develop a reputation for making effective teaching toys.
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4.4.2 MARKETING STATEGY The marketing strategy will emphasize the fact that Fun-Learn's products are truly educational devices that are fun. This is an important message because parents will want their children to play with this type of toy. The element of "fun" in the product is used to keep the children engaged in the product, something often difficult to do with most educational devices. The marketing strategy will recognize and account for the fact that there are two distinct customer groups that must be attracted. To capture the awareness of both groups, FunLearn recognizes that the groups are very different regardless that they are buying the same product. Fun-Learn will use advertisements and direct mailings. The advertisements will be placed in magazines or journals chosen specifically recognizing who the target audience is. Magazines will be used for the individuals market and a combination of magazines and journals will be used for the businesses segment. 4.4.3 SALES STRATEGY The sales strategy will be tailored for each customer group. The sales strategy for individuals is to create enough awareness of Fun-Learn so that customers are asking their retailers to carry Fun-Learn for them. To address the business segment, it is Fun-Learn's goal that the businesses are not just buying one or two of the products but that they are buying all of them addressing different skills, all of which are important. This is especially important as businesses are generally repeat customers, meaning that if the customer is happy with the product, it is more than likely that they will become a longterm customer and not look for new vendors.

4.5 MAIN COMPETITORS

1. Cobble Hill Puzzles 2. Ankidyne Soft Toy Manufacturing Company 3. Loyal Group Nursery Rhymes

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5.0 FEASIBILITY STUDY

5.1 TECHNOLOGICAL FEASIBILITY 5.2 ECONOMIC FEASIBILITY 5.3 OPERATIONAL FEASIBILITY 5.4 LEGAL FEASIBILITY

5.1 TECHNICAL FEASIBILITY

In technical feasibility the following issues are taken into consideration:

Whether the required technology is available or not, Whether the required resources are available or not.

Once the technical feasibility is established, it is important to consider the monetary factors also. Since the proposed project does not require any high technology for bringing up its products, the project can be considered as technically feasible and its economic feasibility can also be checked upon.

5.2 ECONOMIC FEASIBILITY

For any product if the expected benefits equal or exceed the expected costs, the product can be judged to be economically feasible. In economic feasibility, cost benefit analysis is done in which expected costs and benefits are evaluated and after evaluation it has been found that the proposed project is economically viable. Economic analysis is used for evaluating the effectiveness of the proposed product.

5.3 OPERATIONAL FEASIBILITY

Operational feasibility is mainly concerned with issues like whether the product will be used if it is developed and implemented. Whether there will be resistance from users that will affect the possible application benefits? Now, since the product will help the upcoming children in grasping knowledge in different ways and also help them in its retention due to the use of several audio-visual aids and also effective hand-eye coordination, the concept is operationally feasible.

5.4 LEGAL FEASIBILITY

It includes study concerning contracts, liability, violations, and legal other traps. This proposed project can be said to be legally feasible as it has taken all necessary permissions for carrying on the operations so as to run a hassle-free business.

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6.0 MANAGEMENT SUMMARY

Fun-Learn have been founded and will be run by Suman Gill. She has brought in specific and valuable skills to the venture. A business administration graduate from NERIM (North Eastern Regional Institute of Management, Guwahati), she has always dreamt of bringing up something new that would be helpful in the primary education system in the country. She has also acquired a certificate course in animation. With this motive in her mind, she along with 4 other employees, have set up this venture. The organization is a sole proprietorship concern and, thus, would be solely managed by her. 2 out of 4 employees will be engaged in making out the soft toys and imbibing the pre-loaded customized sound-chips in these soft toys. 1 employee will be required for making the jigsaw puzzle and the owner of the concern will animate the required videos of rhymes for its product, Fun-Disk and 1 employee will be responsible for bringing in the raw materials and also for selling the products to wholesalers and retailers.

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7.0 PERSONNEL PLAN

Fun-Learn would require 5 employees to run the organization smoothly. It would require: 1. 2 persons for sewing the soft toys 2. 1 person to make the jigsaw puzzles 3. 1 person to animate the rhymes and multiplication tables for Fun-Disk 4. 1 person to help in office chores, bring the raw materials from market and will be responsible for sales and distribution

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8.0 FINANCIAL PROJECTIONS

8.1 FIXED CAPITAL 8.2 WORKING CAPITAL (PER MONTH) 8.3 TOTAL INVESTMENT 8.4 COST OF PRODUCTION 8.5 TURNOVER (PER YEAR) 8.6 NET PROFIT 8.7 FINANCIAL ASSESSMENTS 8.8 ADDRESS OF SUPPLIERS

8.1 Fixed Capital

a. Office building- Rent at Rs. 5000 per month b. Machinery and Equipments SL NO. 1 2 3 Description Sewing machines (2) 1 laptop and 1 printer Office Furniture & Room Furnishing (Computers table / Office table,chairs,fans) Total Fixed Assets Price Rs. 40,000 45,000 60,000 1,45,000

c. Cost of tools (scissors, saw etc) - Rs. 1000 d. Electrical and Installation charges- Rs. 1500 e. Total Non-recurring expenditure: Rs. {(5000*12) + 40,000 + 45,000 + 60,000 + 1000 +1500)} i.e. Rs. 2,07,500

8.2 Working Capital (per month)

i. Employees Manager/Animator Sewing machine operators/ soft toy makers Puzzle maker Sales person Total 1 1 5 16 6000 6000 6,000 6,000 22,000 No. 1 2 Salary per month(Rs.) 8000 6000 Total (Rs.) 8,000 12,000

ii. Raw Materials (per month) a. Paper b. Fabric c. Cotton d. Soft toy accessories: black beads, plastic sunglasses, ribbons e. Compact-disks (360 @ Rs.10) f. Poster board (200 @ Rs.15) g Cardboard (100 @ Rs.10) h. Glue (10 @ Rs.10) Total Cost of Raw Materials iii. Other items of expenditure (per month) a. Electricity b. Transport c. Commission to distributors d. Rent e. Stationery f. Telephone g. Sales expenses h. Other miscellaneous expenses Total Other expenditure

Rs. 5,00 4,000 1,500 1,500 3,600 3,000 1,000 100 15,200 Rs. 1,500 1,000 2,000 5,000 500 1,500 1,000 1,500 14,000

iv. Total Recurring Expenditure (per month) = Rs. (22,000 + 15,200 + 14,000) = Rs. 51,200 v. Working Capital for 12 months = Rs. (12*51,200) = Rs. 6, 14, 400

8.3 Total Investment

i. Fixed Capital ii. Working Capital Rs. 1, 45,000 Rs. 6,14, 000 Rs. 7, 59,000

8.4 Cost of Production (per year)

i. Total Recurring Expenditure ii. Depreciation on machines and equipments@ 10% iii. Depreciation on furniture and fixtures @ 10% Total Cost of Production (per year) Rs. 6,14, 400 Rs. Rs. 8,500 6,000

Rs. 6,28,900

[NOTE: It has been presumed that depreciation rate is to be 10%]

8.5 Turnover (Per Year)

Product Qty per day
(a)

No. of working days

(b)

Qty produced per year

(c)=(a)*(b)

Rate
(d)

Total
(e)=(c)*(d)

Soft-toy with sound chips Fun-Disk Jigsaw puzzle

4 10 2

278 278 278

1112 2780 556

600 100 80

6,67,200 2,78,000 44,480 9,90,000

8.6 Net Profit (per year before taxes)

=Turnover-Cost of Production = Rs. (9,90,000-6,28,900) =Rs. 3,61,100
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8.7 Financial Assessment

i. Net Profit Ratio = (Profit per year/Sales per year)*100 % = (3,61,100/9,90,000)*100 % =36.47% ii. Rate of Return = (Profit per year/Total Investment)*100 =(3,61,100/7,39,000)*100 =48.86% iii. Fixed Cost Depreciation =Rs. 14,500 Rent Salary =Rs. 60,000 =Rs.2,64,000

Total Fixed Cost=Rs.3,38,500 iv. Break-even Point = (Fixed Cost *100)/ (Fixed Cost + Profit) =(3,38,500*100)/(3,38,500+3,61,100) =(3,38,50,000/699600) =48.39%

8.8 ADDRESS OF SUPPLIERS

i. Raw materials-NAVNEET stores, Prakash Bazar, Tinsukia ii. Machineries and equipments- USHA store, Daily Bazaar, Tinsukia iii. Laptop - SONY COMPUTERS, Makum Road, Tinsukia iv. Sound chips- www.alibaba.com
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9.0 CONCLUSION

Fun-Learn is a sole proprietorship concern that produces educational toys and interactive disks that can help a child in their developmental stage. Fun-Learns product aims at increasing the concentration and retention curve of a developing child with the help of images, music and visuals so as to increase the dendrite branching between both the parts of the brain and successfully help the children to have fun as well as sub-consciously learn new things in a playful manner.

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