Business plan example

Heaven Driven Business Plan | 1

Executive Summary “Hea “Heave ven n Driv Driven en” ” is a newl newly y esta establ blis ishe hed d smal smalll busi busine ness ss,, primarily involve in providing condoms through a variety of flavors whic which h are suit uitable able for for men men espec specia iall lly y teen teenag ager ers s who enjo enjoy y satisfying sex lives while concerning concerning their safety. The range of our condom condoms s includ includes es a kaleid kaleidosc oscope ope of color colors, s, textur textures, es, sizes sizes and tastes in which customers can select the ones that perfect fit with their love-lifestyles. Our Our prod produc ucts ts will will be firs firstt launch launched ed in conven convenien ientt stores stores,, superm supermark arkets ets,, and other other retail retail stores stores in Bangko Bangkok k which which can be found easily easily and close close to our target custome customers. rs. The company company also plans to expand the business in other provinces in Thailand such as Chiang Mai, Chonburi, Phuket and etc. Furthermore, our company intends to devote a strong support to the ‘Poktoong’ campaign which is sponsored by Ministry of Public Health. Since we hope that our contribution can help the country in redu reduci cing ng the the risi rising ng numb number er of Thai Thai peop people le who who are are livi living ng with with HIV/AIDS and preventing them from such life-threatening condition as well. “Hea “Heave ven n Driven iven” ” will ill enga engag ge in a sub subcon contrac tractt wit with a manu manufa fact ctur urin ing g ente enterp rpri rise se to assi assist st the the comp compan any y in supp supply lyin ing g condoms. condoms. We mainly mainly focus on generating generating ideas of product product design, design, conducting marketing researches, and modifying products to meet customers’ wants. Our Our speci special al prod produc uctt is the the “Ext “Extra ra Sens Sensit itiv ive” e” whic which h will will be introduced to the customers as the thinnest condoms in our latex range while still providing the same high level of reassurance and protection. We expect our business to have a total initial investment of approximately 2 million baht with a payback period of appro approxim ximate ately ly 2 years. years. Heaven Heaven Driven Driven will generat generate e net profit profit marg margin in abou aboutt 8.7% 8.7% on aver averag age e over over five five year years s with with retu return rn on

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investment approximately 50.8% approximately 62% over five years.

and

return

on

equity

Heaven Driven requires quite a large amount of investment and due to the fact that the business involves with the manufacturing process, raw material is a very important resource in the operation. Besides, marketing efforts would be another driving factor to generate company’s revenue.

Company Profile Heaven Driven Company Limited is a newly funky condom brand which has broken the old design to deliver a new range of cond condom oms s pack packed ed with with cool cool and and funk funky y fun. fun. The The comp compan any' y's s core core business is providing, marketing and developing high quality male condoms that satisfy our customers. Th The bran brand d repr epresen esents ts supe superrior ior pro product ducts s as a resu esult of advanced manufacturing technology implemented a wide range of technical skills overseas. Our high-quality brand, "Heaven Driven" promises "You can trust Heaven Driven products." We stand behind our products with a complete 100% moneyback back guar guaran ante tee. e. The The dist distri ribu buti tion ons s can can be acce access ssed ed easi easily ly.. In addition, we are ready to deliver our products within 24 hrs, after our customers customers place place an order. The shipping, shipping, packaging packaging and billing billing is totally confidential. That is to say we have a duty to fully satisfy our customers, stockholders, employees, our associated companies, and their families throughout throughout our business. We absolutely promise the involving parties progress as a company in order to guarantee thei theirr sati satisf sfac acti tion on.. We woul would d like like to tell tell the the worl world d that that we are are extremely proud of the compliments as well as complain on our products and services. There are competitions in this industry in Thailand. Whoever are the competitors, we will do our best effort to achieve customer
















•

To be the leader of the sex supporting company by serving the unlimited happiness and especially perfect security that have done by new type of condoms and other products in Thailand.

Mission •

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•

Promising to provide the new type of condoms that focus on Thai people sense and support with Thai taste. Ensu Ensuri ring ng all all cust custom omer ers s that that our our prod produc ucts ts can can prot protec ectt any any types of diseases which can be infected through sex for 100 % absolutely. Attemp Attemptin ting g to suppor supportt people people in societ society y to concer concern n about about having secured sex.

Goal •

To encourage encourage Heaven Heaven driven driven to be a well-known well-known superior superior sex products within 2 years.

Product Design Overall

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•

Since Heaven Driven is providing condoms, our products will will look look unique unique,, perfec perfect, t, and, and, color colorful ful but endur enduring ing and comfortab comfortable le to fit as well. In addition, addition, our differe different nt flared shapes make them easier to put on and more natural and sensitive when they use our condoms. Decoration Our Our cond condom oms s will will be extr extra a thin thin with with vary varyin ing g size sizes, s, lengths, and widths which give a "closer" fit. Also adding some eye-catching features that make the produc products ts look look attrac attractiv tive e and stimul stimulate ate custom customers ers to purchase. Toget Together her with with the contai container ners s which which are color colorful ful and provide the methods of using condoms. •

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•

Open Hours
















For the operation hours of those agents like convenience stores, supermarket, and other retail stores are subjected on their normal time basis.

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Marketing Plan Marketing Objectives • •

To introduce and launch our products in Bangkok within 2010. To To dist distri ribu bute te our our prod produc ucts ts to othe otherr prov provin ince ces s in Thai Thailan land d concen concentra tratin ting g in touris touristt destin destinati ations ons such such as, Chiang Chiang Mai, Mai, Chonburi, and Phuket in 2012.

Marketing Mix As Heaven Driven brand condoms being made from premium quality, it helps reduce the risk of pregn pregnanc ancy y and sexual sexual diseas diseases. es. Our bran brand d prov provid ides es wide wide rang range e of cond condom om design, an advanced material so strong, durabl durable, e, silky silky soft soft condom condom and condom condom with lube for a

Product:
















flavors such as mint, aloe, green tea, orange, chocolate candy, liquor and etc. Our brand condoms are designed various size; XL, L, M and free size. Price: “Heaven Driven” prices on condoms are really indifferent compared to other places. The price for a box of three ordinary condoms is approximately 30 Baht, The price for a box of three condoms with flavors is approximately 40 Baht. The price vary depend on size, design and lube. locattion ion of our our head head offic ffice e is on 19th floor, floor, 23 Place: The loca Sukhumvit 63, Klongton Nua, Wattana, Bangkok 10110, Thailand and our store is right there next to the building which will be near our our main main targ target et mark market ets s with with a plus plus of the the conv conven enie ienc nce e in transportation as we we are also also near the Ekamai BTS Station. Our prod produc ucts ts can can also also be foun found d in many many Thai Thai drug drug stor stores es,, smal smalll retailers and online stores. Promotion: The difference between the price on the box of three and and the the box box of one one doze dozen n equa equals ls for for a 25% 25% disc discou ount nt.. When When purchased in a package of two dozen, the price drops more than 40%. For Valentine campaign, we give “buy one box get one free” to increase use of condoms and help to lower infection rates (HIV).

Target Market Segmentation The The mark market et can can be segm segmen ente ted d into into majo majorr and and mino minorr targ target et groups which are; Major target market: - Male an and Female - 15 – 50 years olds - Middle to to hi high in income - He Heal alth th Cent Centre re and and Ho Hosp spit ital al - Food Food and and Dru Drug g Admi Admini nist stra rati tion on Minor target market: - Cust Custom omer ers s who who pref prefer er to have have safe safe sex sex Se ally ally ti te
















Competition Profile (SWOT Analysis and Fives Force Analysis) SWOT Analysis S – Strength • • • • •

• •

Innovation in product features and quality Availability of raw materials High product safety Almost essential for sexual activity Availab Available le in many many sizes, sizes, color colors, s, and flavor to attrac attractt more more consumers Increasing awareness and increasing of sales Using condom to avoid HIV

W – Weakness •

• • • • •

The company is the new comer in the industry. Therefore, it affects the company image and credit. Unable to advertise directly Surrogate advertisement for condom Social, culture, and traditional hindrances Not 100% completely guarantee on pregnancy control Easy for duplication in product designs

O – Opportunit Opportunities ies •

•

• •

•

Rapidl Rapidly y advanc advancing ing techno technolog logy y makes makes manufa manufactu cturin ring g more more effi effici cien ent, t, less less cost costly ly and and more more effo effort rt can can be plac placed ed on distribution There is an increase in number of persons who enjoy the night life. People concern more about their health and safety. Many Many shop shops s are are avai availa labl ble e for for cond condom om to be one one of thei theirr products. The Ministry of Public Health supports and encourages more on “Poktoong” campaign. This means they encourage people with use condom.

T – Threat •

Lots of competitors in the market. Soci Societ et th Ro Cath Cathol olic ic Ch ch

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Limitation of brand loyalty

Fives Force Analysis Substitute products

Bargaining power of suppliers

Rivalry

Bargaining power of buyers

1.

Threats of new entrance

Bargaining power of suppliers

In Thailand, there are quite a few manufacturers who are engaged in producing condom that we can hire them to produce produce our products. products. Nevertheles Nevertheless, s, it is necessary necessary for us to control the quality of the products to meet our required stan stand dards ards and and most most of thos those e manu manufa fact ctu urer ers s have ave the the guarantee standard. Thus, we can choose among them to be our successive manufacturer or in this case our supplier. 2. Bargaining power of buyers The switching cost is really low due to the fact that that cons consum umer ers s most mostly ly do not not reall really y care care whic which h bran brand d of condom condom they are using. using. Therefor Therefore, e, we can carefully carefully predict predict that the brand brand loyalty is quite low. Furthermore, they tend to switch the brand of condom easily, depending on such factors like, price and accessibility. 3. Rivalry There There are quite quite a few compet competito itors rs that that alread already y •

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In order to enter into the industry of condom business, you do not need much of capital or the initial investment so the cost of entry is quite low. Also, in Thailand, there is no law or regu regula lati tion on that that proh prohib ibit its s the the inve invest stme ment nt in this this busi busine ness ss.. Consequently, there is relatively low barrier of entry into this type of business.

Market Strategy Advertising Method We are are offe offeri ring ng free free prod produc uctt samp sample les s in the the adve advert rtis isin ing g meth method od in the the begi beginn nnin ing g stag stage e of launch launchin ing g our our prod produc ucts ts.. In addition, we select the “World Aids Day” and other related events as the appropriate times for introducing our products and showing our dedicated supports supports for the “Poktoong” “Poktoong” campaign as well. Since, we are hoping that these events would definitely give us an opportunity to attract people and probably make our target market aware of our produc products. ts. Conseq Consequen uently tly,, they they may be interest interested ed in purcha purchasin sing g condoms. The The next next step step is to plac place e adve advert rtis isem emen entt in news newspa pape per, r, magazine, spot radio, and through guideline websites since we also have our own website for customers to search for information of the products if they are interested. Moreover, after-sales services are available such as online live chat for the customers to comment of the product quality and online guidelines regarding sex and condom usage. In addition, the product will be joined with the physician prescription (Dr).


















Time Ti meta tabl ble e fo for r Pr Prom omot otio iona nall Ca Camp mpai aign gns s

(Jan (J anua uary ry,, 20 2010 10 –

January, 2011) Ta sk

1 2

3

4

5

6 7 8

9

10

11

Person Responsible

Field Trip for major dealers (January 18-22) Grand Opening (February 14) Offering free product samples (February 14: Valentine's Day) Placing advertisement through various sources Offering free product samples (April 10-18: Songkran Festival) Sponsoring TV programmes (Channel [V] Thailand) Launching 'Gimme More' (May 1) Discount promotion for package purchasing (June 1-30) University Road Show: 'Sexual and Reproductive Health Education Program' (July 19-30) Launching 'Break The Ice' (August 1) Offering free product samples (August 12, Ministry of Public Health and AIDS Thai Organization)

Ja n

Fe b

Ma r

Ap r

Ma y

Month Ju Ju Au n l g

Se p

Oc t

No v

De Ja c n

















H e a v e n D r i v e n B u s i n e s s P l a n | 10

16

Rewarding customers as the celebration for the first anniversary

E-Commerce For For onli online ne mark market etin ing, g, cust custom omer ers s can can visi visitt our our webs websit ite e by clicking banner ads in many popular websites such as Sanook.com, MThai.com, Facebook.com, and etc. or entering the website directly at www.heavendriven.com www.heavendriven.com.. The The websi website te will will be prov provid idin ing g the compan company y backgr backgrou ound, nd, our produc products, ts, promot promotion ions, s, locati location, on, shop shop online, live chat, and contact us. •

Company Background: shows the background of

Heaven Driven Company Limited. Our products: provides both names and prices of all products that are currently launching in the market. Promotions: shows all promotions of our company to potential customers. Location: shows the clear map and address of our head office and our store. Shop Online: allow customers to place the orders via our websites. Live Chat: offers after-sales services of answering customers’ enquiries and allows them to give comments. •

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Management Plan Organization Chart




















Also Also respo responsi nsible ble for the operat operation ion of distr distribu ibutio tion n with with the assistant of General Manager.

•

2. Ma Mark rket etin ing g Role

Gen Gener erat atin ing g and and execu xecutting ing marke arketi tin ng plan lan of the the business and public relations. Crea Creati ting ng new new camp campai aign gns s and and prom promot otio ions ns to o attract the customers. Creating the brand associate and brand o awareness to the customers in order to gain the brand equity such as brand loyalty.

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3. Finan Finance ce & Acco Accountin unting g Role Role

Respon Responsib sible le for financ financial ial manage managemen mentt and planni planning. ng. Control all about the revenues and expenses. In addition, the person taking the role will also be an acco accoun unta tant nt resp respon onsi sibl ble e for for prov provid idin ing, g, orga organi nizi zing ng,, and and •

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Evaluating Evaluating inventory inventory levels and notifies notifies vendor vendor when reorders are necessary. Performing receiving, stocking, distributing, and o packing in addition to inventory control. 3. Admin Administra istrative tive Officer Officer (1 (1 position) position) Responsibilities Assembling and analyzing fairly complex o info inform rmat atio ion n or data data and and desc descri ribi bing ng resu result lts s in a written report. Supplying administrative support services to the o company and operating under general supervision. 4. Cle Clerk rk (1 (1 posit position ion)) Responsibilities Performing routine office or clerical support tasks o Sort Sortin ing g and and dist distri ribu buti ting ng mail mail,, phot photoc ocop opyin ying, g, o filin iling, g, postin sting g or proofi oofin ng dat data, or answ nswer erin ing g telephone calls and recorded messages. 5. Sale Sales s Representa Representatives tives (4 positi positions) ons) There will be four Sales representatives in our company. Responsibilities Conduc Conductin ting g sales sales calls, calls, schedu schedules les promot promotion ional al o o

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Cashier will be working in the store area. She should have have some some of the the acco accoun unti ting ng back backgr grou ound nd and and shou should ld have accuracy in receiving payments and giving changes. Responsibilities Responsible of the petty cash inside the store. o Also be an assistant for accountant. o 8. Delive Delivery ry Driver Driver (3 positio positions) ns) Responsibilities Drivi Driving ng to and from from delive delivery ry destin destinati ations ons and and o delivering cargo to customers within a local area. Intera Interacti cting ng with with custom customers ers to obtain obtain paymen payment, t, o signatures and giving receipts. 9. Outs Outsource ourced d Housekeepe Housekeeper r (1 position) position) The The hous housek ekee eepe perr will will be outs outsou ourc rced ed and and perf perfor orm m clea cleani ning ng duti duties es to main mainta tain in our our offi office ce in a clea clean n and and orderly manner. •

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3 Year Personnel Plan




















Representatives Store Personnel: - Inventory Controller - Store Worker - Cashier - Delivery Drivers Outsourcing: - Housekeeper Total No. of People Total Payroll per Month Total Payroll per Year

1 1 1 3

10,000 6,000 5,000 6,000

1 1 1 3

10,000 6,000 5,000 6,000

1 1 1 3

1

1

1

17

17

17

11,000 6,000 5,000 6,000

฿138,00

฿141,00

฿142,50

0 ฿1,656, 000

0 ฿1,692,0 00

0 ฿1,710,0 00

Facilities and Utilities Office 1. 1 Co Couch 2. 7 Pedest Pedestal al desks desks and and 11 11 chairs chairs




















3.

1 Telephones

Value Chain Management Primary Activities: 1.

Inbound logistics

Heave aven Driven will select ect high quality raw materials from the reliable source and order a manufacturing enterprise to produce condoms on behalf of us which always provide the higher quality of the products. We also also use use the the Make Make-t -too-st stoc ock k proc proces ess s whic which h means we will stock the raw materials such as plastics and late latex x at the the righ rightt amou amount nt (acc (accor ordi ding ng to the the fore foreca cast stin ing) g).. T Th her eref efor ore, e, our cond condo oms are alw always ays avai availa lab ble for for the the customers to purchase. purchase. Moreover, we can save more cost. Accord According ing to the Make-t Make-to-s o-stoc tock k proce process, ss, we will will deliver the products periodically like once a week or once a month. 2. Operations After receiving the unfinished product from the manufacturer, the company will randomly test the quality of the product which will take place in the laboratory room. •

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standard. The product will be carried by truck to the final customer such as to the hospital, the club. For the retailer, there will be a small truck response to the deli delive very ry in orde orderr to sepa separa rate te the the work work and and to redu reduce ce the the degree of confusion in working to the workers. 4. Marketing and Sales For advertising, Heaven Driven will promote the prod produc ucts ts by usin using g news newspa pape per, r, maga magazi zine ne,, spot spot radi radio, o, and and through guideline websites. For promotion, we will offer free sample products or run promotional campaigns on every special occasion such as Valentine’s Day, Songkran Festival, Loy Krathong Festival, Christmas holiday, and New Year. The marketing and sales department will create the marketing plan for the products. (see Marketing and Sales

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Create the website for the convenience of the customers for information of the range of products. Also setting up the production system for the implementation of delivering condoms.

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Total Quality Management (TQM) Total Total qualit quality y manage managemen mentt is the worldw worldwide ide system system that that is widely used by many companies around the world. So we will apply this system to our products in order to manage the whole system of our company to be more effective and reliable for all customers so that we can make sure we provide our customers with high quality condoms sold. Our company will determine the core of this system from the






















Nippon Nippon Rubbe Rubberr Indust Industry ry compan company, y, Thai Thai High High Gene Gene Produ Product ct compan company, y, Siam Siam Ogamot Ogamoto o compan company y and SSL manufa manufactu cturin ring g (Thailand) company. Furthe Furthermo rmore, re, we have have deal deal with with these these compan companies ies which which poin pointt out out that that ther there e are are six six main main the the proc proces ess s of cond condom om production which are: 1. Comp Compou ound ndin ing g 2. Dipping 3. Tumbl umblin ing g 4. Elec Electr tron onic ic Testi Testing ng 5. Rollin Rolling g and and Packag Packaging ing 6. Quali Quality ty Cont Contro roll These processes will certainly control the quality of production since since filter filtering ing raw materi materials als then then contro controlli lling ng qualit quality y during during production until checking the finished product for defection. •






















Cost In order der to comp compet ete e succ succe essfu ssfull lly, y, we pay attent attention ion on taking taking care of custom customer er satisf satisfact action ion as a top priority in business business operations. To achieve it, one one key success we must concentrate on is costs efficiency. At the early period of new brand introduction, it is just just stag stage e that a lot lot of cos costs are are comm commit itte ted d such uch as advertising, promotion, promotion, defected condom and etc. In addition, it is necessary necessary to possess possess precise precise informat information ion on costs. costs. We theref therefor ore e use target target cost cost which which this this method method gives gives precis precise e information on costs. Our main strategy is “do it right the first time”. It is cheaper to produce the items correctly the first time, rather than to waste resources producing substandard items. Also, we mainly emphasize on "design and build quality in, •

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In orde orderr to oper operat ate e easi easier er,, we woul would d regi regist ster er our our He Heav aven en Driven Company as a juristic person. This will aid us especially with the financial management such as applying for loan from the bank, payment, etc.

Commercial license Because we are opening a business, we need to apply for the commercial license from the government to operate our business. The application for the commercial license needs to be done within 30 days starting from the day of operation.

Protection of Intellectual Property Rights Trademarks We will register our company trademark to identify the origin
























Depreciation Expense month Maintenance Expense month Office Supplies month Transportation month

4,474

/

600

/

1,000

/

2,500

/






















according to the proportion of their investment

Financial Statements 1. 2. 3. 4

Financial Ratios Capital Budgeting Income Statement Balance Sheet






















Heaven Driven Company Limited






















Public Relations Openning Parties Personnel Business Management Employee Training Total Pre-Opening Expense Total Initial Capital Heaven's Driven Capital Finance by Long-term Debt

40,000 25,000 90,000 50,000

115,000

140,000 ฿380,500 ฿2,132,100 1,248,000 ฿884,100






















Taxes @ 30% Net Income/ (Loss)

291,850 ฿680,984

438,717 ฿1,023,67 2

472,701 ฿1,102,96 9

481,370 ฿1,123,19 8

485,758 ฿1,133,43 6













































For the Year Ended January 31 (in Baht)






















The long-term debt of 884,100 baht is to be repaid through






















Based on our financial estimation, we are generating the net






























































































































































































































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