ABC Trading Pvt Ltd. (1) bplan of a shipping companybplan of a shipping company

8/13/2019 ABC Trading Pvt Ltd. (1) bplan of a shipping companybplan of a shipping company

1/18

ABC Trading Pvt. Ltd.

Xcellon Institute 1

Paldi, Ahmedabad.

Service sector


2/18

Executive Summary

Xcellon Institute 2

ABC Trading Pvt. Ltd. is Ahmedabad Based Trading

Company.

ABC Trading emphasis will on Supply Chain of

Mineral Water in Indian Railway. ABC Trading will supply Packed Qualitative Mineral

Water Bottle of 1 liter to the end customer in Indian

railway (Train).

Additionally, this service will be provided for all

major states of India.


3/18

Executive Summary

Objectives

To provide Qualitative mineral water in Indian railways.

To fill the gap of supply in mineral water in Indian railways.

To provide low cost mineral water bottle so that every traveler gets waterto drink, considering all class of people.

To increase sale and earn a profit of at least 20 lakhs/ month.

Mission Statement

To help travelers with a basic need i.e water. Providing qualitative mineral

water and subsidies rates, so that no one remains thirsty. Capture whole

Indian Railway to sell a basic need in a basic price.

Xcellon Institute 3


4/18

Executive SummaryServices ABC Trading will serve Cold Mineral Water Bottle in Indian Railways

(Bailey mineral water) for Rs. 6, (whose M.R.P is R.s 15).

Bailey is a well Known brand and is observed trust worthy in Indian

market for mineral water.

ABC Trading will provide Direct Selling to Passengers Traveling with IndianRailways.

Direct selling will help Customers to fill the gaps for need of mineral water

every time while travelling from one place to other.

Xcellon Institute 4


5/18

Executive Summary

Customers

Customers of ABC trading will be all the Passengers of Indian Railways.

ABC Trading is looking to cover 100 trains of Western Railway.

Approximately 1 express/mail train consist the capacity of 1200

passengers reserved. I.e. the total audience market for ABC Trading will be120000 customers/day.

Management

ABC trading will have a strong management team.

Management team will consist of experienced Managers at different level

to manage supply chain.

Beside managers there will be 400 employees for direct selling. The

criteria for recruiting the bottom employees would be those who are

unemployed or is for a need of job.

Xcellon Institute 5


6/18

Industry Analysis

Future Outlook and trends As Abc trading is selling mineral water bottle of bailey in 6 rs. The more

demand for the product will be seen.

The trend of the water bottle is been observed while traveling in a train.

This is because people are more conscious for health specially when they

travel from one place to another and so water plays an important role in

one way or other.

Analysis of competitors There are many branded and non-branded brands available in the market

for mineral water supply but for sale in train no one sells mineral water

bottle of 1 litter less than Rs. 12.00

Xcellon Institute 6


7/18

Description of venture

Product A mineral water bottle of 1 litter.

Service

Direct selling is been chosen as a strategy to sell theproduct.

Size of business

Each train will be provided with maximum 500bottles of 1 litter, at initial level.

Each train will have 4 nos. of direct sellers.

Xcellon Institute 7


8/18

Description of venture

Office Equipment

ABC Trading (company) will have the head office at

Paldi Ahmedabad, from here all the activities will be

managed.

Xcellon Institute 8


9/18

Operational Plan

o Bailey (mineral water company) will deliver the bottles at Ahmedabad

railway station to our executive .

o Operation manager will be responsible to get the consignment and

manage to divide them into box of 500 bottles differently for each train.

Operational manager will be reporting General Manager.

o From 4 direct sellers, one of them will also role as a leader, who will be

responsible for collecting respective consignment and distribution of same

o Control manager will be responsible for the sales data every day and

reporting to the operational manager.

Name of suppliersAt initial level only Bailey pvt. ltd. would be the supplier.

Xcellon Institute 9


10/18

Marketing Plan

Xcellon Institute 10

Pricing The price of 1 litter water bottle would be Rs.6 for end consumers.

Bailey will provide per bottle for Rs 3.5/ bottle.

If Abc Trading will sell each bottle for Rs. 6 than Rs. 2.5 would be the profit

for each bottle sold.

Distribution 400 direct sellers (employees) will be used as a supply chain for

connecting the distribution sales in 100 western railway trains.

Promotion Rs.6 subsidy for each bottle is given by ABC trading private ltd. to all the

consumers to promote sales of Bailey as a brand.


11/18

Branch Manger

Human resource

Manager Finance managerManager Operational managerManager

Admin staff Accountant Control Manager

Direct Sellers

Organizational plan

Form of Ownership

Individual

Flow Chart


12/18

Assessment of risk

Swot Analysis

Strength

Huge number of audience customer available.

No need to market the brand. Huge demand

Basic need

Can be stored for at least 1 month

Weakness More than 400 employees to manage.

Huge sales to operate

Controlling can be difficult.


13/18

Assessment of risk

Opportunity

Huge market.

Gaps between demand and supply has been observed.

No competitor in same price segment.

Threat

Many illegal unions.

Government policies.


14/18

Assessment of risk

Contingency Plan If we do not succeed as planned than, ABC Trading will try to do the same

deal with IRCTC.

Else will try to capture northern railway or southern railway.

Or will change the supplier, if needed.


15/18

Financial Plan

Cash Flow Projection

Revenue :Sales : 50000 bottles *rs.6 = Rs. 3,00,000/day

Payment to bailey : 50000 bottles *rs. 3.5 = Rs. 1,75,000/day

Profit per day = Rs. 1,25,000

Profit per month = Rs. 1,25,000*30 days = Rs.37,50,000

Payments per month

400 direct sellers = Rs.3500*400= 14,00,000

2 Human recourse manager = Rs. 25000*2= Rs.50000

3 Operational manger = Rs. 75,000

3 Control manager = Rs. 75,000

General Manger = Rs.35000

Other staff = Rs. 65000


16/18

Cash Flow Projection

Total revenue = Rs. 37,50,000

Total payments = Rs.17,50,000

Tentative Profit: Rs.20,00,000Break even AnalysisTotal payments = R.s 17,50,000

Profit per bottle = R.s2.5

So break even of sales of bottles : 7,00,000 bottles/monthExpected sales per month : 1500000 bottles/month


17/18

Sources of Application of Funds

2 months credit from bailey will be taken.

50,00,000 rs. Safety Deposit to the bailey pvt

ltd. will be raised by own source of capital

funds available.


18/18

Thank you

ABC Trading Pvt Ltd. (1) bplan of a shipping companybplan of a shipping company

Documents

Transcript of ABC Trading Pvt Ltd. (1) bplan of a shipping companybplan of a shipping company