ECONOMICS FINAL

PROJECT
GROUP MEMBERS NAMES

WASIQ
AZKA HARIS WAJID

DEDICATED
TO

RESPECTED

MS . NOSHEEN
 BUSINESS
PLAN FOR

BAGGIES PVT . LTD

BAGGIES A HOUSE OF QUALITY AND EXCELLENCE

INTRODUCTION

We group of four members are starting a

small scale business of handmade bags
with our own efforts and contributions .
At initial our company will be operating
on small scale like within the city
lahore , and with the passage of time our
company will be soon becoming the local
handmade bags market leader . We have made
a deal with a lady about the making of
bags we shall be providing her with all
the raw material which is used in
manufacturing of bags , And she is working
with us on per unit wage rate . we have
also planned to rent a shop in shadman
market for display and sale our products .
Our company name

BAGGIES pvt . ltd

Vision statement
Our company vision statement is to
become heavy market share leader in
local market .
 Mission
statement
Our mission is to make friendly
bags for our customers with
distinct and innovative looks that
would be definitely appealing to
students and working women .
 GOALS
•
•TO DOMINATE DOMESTIC MARKET
•
•TO GAIN POPULARITY
•
•MORE QUALITY AT CHEAPER RATES
 OBJECTIVES
•
•Dominate through low prices
•
•Popularity can be attained by
providing customers which they
actually demands with stylish
looks in bags
•
•We shall also be making bags
on order as our customer wants a
bag to be look like
•
•Cheaper rates could be made
available if we start
manufacturing raw material as
much as possible by our own .
LOGO OF OUR
COMPANY
 SOURCE OF COMPETITIVE
ADVANTAGE
•
•
•
•Our competitive advantage would be in terms
of more variety in colors of bags .
•
•Our company will be emphasizing on customer
growth rather than only profit maximization .
•
•We are targeting multi segments I . e
working women and students , in this way we
can gain advantage by fulfilling the demand
of two segments .
KEY SUCCESS FACTORS THAT WILL DICTATE THE
SUCCES OF OUR BUSSINESS
a ) High quality on low prices
b ) Door to door selling
c ) Unique designs
d ) Manufacturing on customers desired style
and design
e ) Always think of customer satisfaction
instead of profit multiplying
f) We try to convert our weaknesses into
strengths
LOCATION
Location of our business will be
in shadman main market

WHY WE CHOOSE THAT

LOCATION
Now a days that area is mainly
flourishing in business concerns
Very large scale of businesses
are establishing in that area .
So not only now but also in future
that area will be a best market in
customers mind .
 TARGET MARKET
Our target market
is only few
segments like
Working women and
female students
SWOT ANALYSIS

STREGNTHS
Unique designs
with durability
and offering very
fare prices under
the strategy MORE
FOR SAME
WEAKNESSES
•Large number of
competitors
•Very less popular
in the market
OPPORTUNITIES
•To get heavy
market share by
attracting
customers by
providing
them quality
and services
excellence
THREATS
As we are at
starting stage so
we need huge
financial resources
to get our company
between the market
leaders , to keep
staying our company
in the market .
 COMBINATION OF INPUT AND
RESOURCES

We combines several input resources to create

our own business

INPUT RESOURCES
•RAW MATERIAL
•HUMAN RESOURCE ( LABOUR )
•MACHINARY
•INFRASTRUCTURE
•PERSONAL CONTRIBUTIONS
 COST
STRUCTURE
We have costing structure
as follows
Per unit cost = total
cost

no . of units

= 2000 =
400Rs

5
Total cost = no . of
units × per unit cost

=
5 × 400 = 2000Rs
 COMBINATION OF INPUT RESOURCRS

CLOTH STUFF -------------------------------------- 550

ZIP -----------------------------------------------------
28

BEADS -------------------------------------------------
170

WOOL --------------------------------------------------
100

LEAS -----------------------------------------------------
20

STARS ---------------------------------------------------
20
FIXED COST

LABOUR ---------------- 100 / BAG

VARIABLE COST

MATERIAL ( TOTAL )--------------- 1160

TRANPORTATION & OTHERS ---- 540
 PRODUCTION
TECHNIQUES

•Keeping in mind today's modern

people desires we gave the modern
look to our bags
•
•We used that stuff which is
normally not used in bags to give
them unique look
•
•By using stylish and antique
style beads , stars and zips to
make them more attractive .
•
•Also we made bags in different
sizes according to the capacity of
bag how much customer wants can
easily select .
 PRICING
STRATEGY

We used COST PLUS

PRICING STRATEGY ( MARK UP ) for our
product to ensure return on sales
which can fulfill up to our costs
of bags .

PROFIT MARGIN
We settled a profit margin for our
product below which we are unable
to sell our products .
 PRICE
CALCULATION
AC = AFC + AVC

PRICE = AFC + AVC + profit

margin

PRICE = TFC + TVC + X

Q
Q Q

PRICE = 500 + 1500 + 400

5
5 5

PRICE = 100 + 300 + 80

= 480RS
 PROFIT CALCULATION

TOTAL SALES = TOTAL COST +

PROFIT

=
2000 + 400
=
2400
PROFIT ( PER UNIT ) = 80
TOTAL = 80 × 5 = 400
 CHANNALS OF
DISTRIBUTION

•MARKET
•DOOR TO DOOR
SELLING
•STALLS
•ONLINE SELLING
SALES TECHNIQUES

•DISCOUNT OFFER ON
SALES ( ON
PARTICULAR DAYS )
•BUY ONE GET ONE
FREE
•FREE GIFT ALONG
WITH BAG
ADVERTISING AND PROMOTIONAL
STRATEGIES
•
•TELEVISION ( ADDS )
•
•NEWSPAPER
•
•MAGZINES
•
•LEAFLETS
 FINANCIAL
PLAN
FINANCIAL RESOURCES TO START
BUSINESS
MONEY NEED TO START BUSINESS
WE WAS NEEDED RS - 5000 TO
START OUR BUSINESS
SOURCES OF FUNDS
And funds are collected mainly
by personal contributions and
from parents .
We did ’ nt got loan from any
bank .
 DETAILED
BUDGET

INITIAL INVESTMENT ------------------------------

2000

LABOUR & OVERHEADS ----------------------------- 500

MATERIAL ---------------------------------------------
900

ADVERTISMENT ---------------------------------------
200

OTHERS -------------------------------------------------
400
THANK YOU …