Role of Auto Transport Reviews in the Selection of Auto Tranport Company
Auto Fresh Company
Transcript of Auto Fresh Company
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AUTO FRESH COMPANY
Muhammad Awais
Hamza Raheel
Auto Fresh Company. Barkat Market Near HBL
Kalma Chowk Road. Lahore
111-888-246
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Take the feeling of easy freshness
Auto Fresh Company
Subject: Entrepreneurship
Submitted to: Kashif-u-Din
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Submitted By:
Muhammad Awais BA01083-037
Hammad Ahmed BA010830-61
Hamza Raheel BA010830-81
Hafiz Talha Akhtar BA010830-86
Ali Anwar BA010830-71
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Table of Contents
1 Executive Summary 32 History 43 Marketing Plan 9
Industry Description and Outlook 9
Competition 11
Location Analysis 12
Price Determination 13
Market Approach 13
4 Management Plan and Operational Plan 145 Management Team 14
Operation Controls 17
6 Financial Plan 18Financial Analysis 22
Balance Sheet 25
Income Statement 27
7 Strategic Plan 28
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Executive Summary
Business Opportunity with an Innovative Product
Paste Toothbrush is the next step in toothbrush sector health field. Its innovative concept is the
best solution that provides the most effective and healthy cleaning. In the following years, we
believe that this new concept will replace the current toothbrushes and cover the market
shelves.
Considering the overall market size of current toothbrushes, our product has a huge business
opportunity. Being protected by a patent, we will be only player in this emerging market.
Even if we could not obtain a patent, being the first initiative, this business idea still embodies
an important business opportunity.
We will introduce toothbrush which will refillable with the paste. It is especially design for
people away from home but still everyone can use it. It will good image on buyers in term of
quality too and also because of no substitute. It total manufacturing cost is 25 and retail price
will 50 with paste. If we grow at the rate of 15% then the net sales will be 9307531.8 R.S. at the
end of two years. Through it buyers no need to carry paste with it they put paste at the back of
container and can easily carry it is specially made for people away from home. As, we are the
only company to introduce this type of product which make us unique from our competitors.
Also its low cost makes us different form competitors.
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History:
Product Idea
The best and the suggested way of cleaning your teeth:
Teeth care and health are one of the important parts of our health. People all around the world
become more aware of teeth care and as a result tooth brush industry is getting bigger by the
time. From there we decided to make unique toothbrush
The idea in the simplest form:
Paste toothbrush is toothbrush which contains paste in the brush and can be used easily. The
brush can be refill and allow adults and children use different size of brushes.
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Vision
Auto fresh company is vision to expand the business throughout the Pakistan, become a well
company in next five years and build a strong customer relationship.
Mission
Company mission is to expand the business in Punjab and create strong brand image in
customer mind
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Product Description:
(Paste will come out
From this hole) (Refillable Place for paste) (Rotator which twists)
Auto Fresh is the newest innovation in portable dental care. Capable of easily refilling from the
screw-opening at the middle, the toothbrush can hold up to 20 to 30 brushings. Simply push
wind the bottom cap and up comes the toothpaste through a channel and out through the soft
bristles.
Features:
Use your favorite toothpaste and save on costly travel sizes. Refillable so you can place your own favorite toothpaste brand within. Soft bristles in a quality toothbrush. Plastic.
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Marketing Plan:
A. Industry Description and Outlook
Toothbrush industry is one of the broadest sectors whose market consists of the entire world.No matter how different the cultures of different countries or which race they belong to,
toothbrushes have customers all around the world.
Therefore, if we want to give a number for the size of targeted customers of toothbrush
industry, we say the size of around 6 billion people which is the population of the World.
However, it is very difficult to operate so much globally even for the most advanced companies.
So we will start our business to just restrict to Pakistan (Punjab) with some of big cities like
Lahore Islamabad Multan Faisalabad
Primary Industry:
Auto fresh company has 2 year manufacture contract with Bruce lee trader (Gorey Brand)
International. Bruce lee trader (Gorey Brand) International is reputed name in the field of
toothbrush, Toothpastes and Personal care Products. Company are operating from Pakistan,
and have regional offices all major cities in Pakistan also company have regional international
offices, in Singapore, Malaysia, Philippine and UK.( A-1/40 Awami Colony Kornagi Industrial
Area) After 2 years Auto Fresh company make own production plant and produce themselves.
Size of the Industry:
No of employees of Auto fresh company are 25, 16 employees of different department, 3 office
boy. The total investment is round about 2954772. Target market of company is lower middle
or above.
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Total expected market volume:
We will try to target 35% of the population of the cities mentioned above. While our expected
sales volume at the end second year will be 9307531.8 R.S.
Growth potential:
In five year company potential to expand network throughout in Pakistan. Company will make
the warehouse and office all the major cities in Pakistan and build a strong supply chain
management and distribution network and make strong relationship with customer.
Characteristics and Trends of the industry:
Productive service satisfaction
Company first time lunch toothpaste and brush combine with premium price and high quality
our product definitely satisfy the customer need customer will not buy toothbrush and paste
separately because it expense. It should also benefit for tourist persons and solider. The most
important thing after shape its refillable consumer does not have to buy a whole new product
consumer can refill it.
Industrys life cycle:
Our product life cycle is one year after success the air fresh product we lunch for kids who is
below 12yr and modify the current product in form of feature taste, design, and color etc
Future potential:
In future potential company tries to expand the awareness throughout the Pakistan and also
sell. After two company setup own plant and produce themselves and make long term
relationship with customers. Introduce toothbrush and paste for kids and modify the current
product in form of feature taste, design, and color etc
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Target Market:
Since our product is use by everyone so there is no age limit in using the product nor in term
sex. However, our target market in term of income level will be minimum lower middle
income people or above. There will be no educational barrier as everyone can easily use this
product. However our product will also specially target Travelers. Buying that product will be
very helpful for them. Our target market will also be the small children who find it difficult to
put paste on toothbrush. While there is no buying habit involve in it as this product came in
regular use. Our all we will target whole population belong to lower middle income or above
because this can also be use at home.
B. Competition:
Product quality and innovation, brand recognition, marketing capability and acceptance of new
product largely determine success in the Companys business segments. Product quality is very
important to differentiate their products from other competitors. Our main competitors are:
Colgate Shield Oral Toothbrush
All the above competitors are successful, because they have built strong brand image after a lot
of struggle. They are able to do this because of following reasons:
Strong marketing campaign Financially Strong Strong Brand Image, because of multinational tag Strong R & D department Strong strategic policies Proper monitoring system
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As such, there is no substitute available in the market for auto fresh tooth brush, but we can
call above three companies over indirect competitors. While, there are number of things which
separated us from our competitors.
No substitute available in the market Specially design for people away from home You dont have to carry paste separately Its unique design also separated product from the competitors
There are number of reasons, why people should by this reason:
Cost affective Easy to carry Refillable with paste Comfortable Reliable Long lasting
C. Location Analysis:
Our company will be operated from a head office in Lahore (Barkat Market). To control and
manage the business in other cities easily, we plan to establish another small office in Multan in
future which only includes sales and marketing employees.Main area of the Lahore and everyone is
aware of this place. Customer can easily approach us at barket market. Company can easily control all
distribution networks in Lahore. It is also almost at center of the Lahore.
At neighbor business HBL bank is located. Building have need little bit maintenance butnot that much it will cost about 3000 to 4000. Customer can easily access their as it is
well known place while parking is also not a big issue.
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D. Price Determination:
Pricing
As stated in product idea section, our product consists of two parts; a body part with paste, and a brush
part. Different pricing strategies can be applied for those different parts of the product. In the following
paragraphs, we introduce different concerns and our proposed strategy.
We assume the average lifetime of the toothbrushes is to be few months, say 5 months. That means a
customer will buy our product twice in a year. Container at the back of the brush will have capacity to
store paste of 15 to 17 days.
As, our brush has manufacturing cost of 25 rupees. So, we have decided that our brush total price will be
Rs. 50, as the 20g toothpaste will also be included in it. At the other, if a customer buy only toothbrush
of other company with 20g paste separately, total cost will be 70 to 80 rupees.
While, if we compare our price with the competitors, it is clear that our target is pretty much
achievable. As, the price is pretty much low. So, it will put good image as it is affordable attractive.
E. Marketing Approach:
We have a new type of product and people are not aware of it. Putting it on shelves doesn't sell
it since people don't know about it, they must hear about our product first.
TV advertisements are the most effective but expensive advertisement way however it will
definitely compensate its cost.
The pricing of TV commercials changes very much depending on the time, the length and
popularity of the channel. To get the best value of advertisement, careful research must be
done to select the advertisement strategy.
Instead of expensive prime time commercials, we think that the morning period is more
efficient for our product. Firstly, commercials in morning time are cheaper than the evening.
Secondly, morning programmers are watched by women, especially by housewives who usually
decide what to buy and shop for home. Women are also careful to their health than men.
Therefore, showing the advertisements in morning will be cheaper and more effective.
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In addition to the digital advertisements, promotions in shopping malls will also bring us a quick
entrance to the market. Selling with very small revenue for the first month can help us to make
use of word-of-mouth. People buying our product for the first time, will definitely tell their
friends about it since it is new in the market.
Management Plan or Operational Plan:
Organization:
A. Management Team:
The Management team will be comprises of six people with shared mission, goals, vision and
mile stones. Members of the management team will come from different backgrounds and
possess multiple skills. The management team will be young, motivated, energetic, and
focused. The management Team has been working together for last few years and team
members have excellent understanding and knows each other strengths. The company will
have a CEO and four executive heads of different departments, CEO will also be head of one of
the department.
Owner
CEO
Distributio
MarketingFinance HRM Accounts R & D
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Hammad Ahmed: CEO & Head of Finance
PROFILE: Mr. Hammad Ahmed will be CEO and executive head of finance department. He has
done master in Finance. The courses in the degree are management courses including
accounting and economics. After completing the graduation he will work as CEO of the
company.
Hafiz Talha Akhter: Head of Marketing and Advertisement Department
Profile: Mr. Hafiz Talha Akhter has done Marketing. He has been working on several research
projects both in industry and study projects. In Bachelor he has been worked on CRM
application a customer focused Business strategy designed to optimize revenue, profitability
and customer loyalty as a final project. While currently he is doing job in Brain Tel. He will be
the head of marketing department of Auto Fresh Company.
Hamza Raheel: Human Resource Management Department
Profile: Mr. Hamza Raheel will be the head of Human Resource Department. He has done
master in Human Resource Management Department. In the past, he has participated in a
number of project research and development, and accumulated a rich experience; he has the
ability to lead the Research & Development of project. He will deal withal the issues like hiring,
training, then motivating the employs etc and he will be nominated head of the Human
Resource Management Department. While he will also be responsible to pass company policies
to he employs.
M. Awais: Distribution Department
Profile: Mr. Awais will be the head of Distribution Department. Currently he has done master in
Finance but still he will work in Distribution department.
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Haseeb Ahmed: Head of Research & Development Department
Profile: Mr. Haseeb will be the head of Research & Development. He has degree of computer
science and technology from PU. He has the ability to lead the Research & Development of
project and he will be nominated head of the Research and development department.
Ali Anwer: Accounts Department
Profile: Ali will be the head of Accounts Department while has worked in accounts department
for few years.. He will deal with the salaries and benefit issues.
Legal status:
PartnershipAuto fresh company will form partnership to establish themselves in the market. In our
business, there will two owners namely Muhammad Awais (Land lord) and Hamza Raheel
(already running small business). These two will invest 5 million each in the business. While,
there will be three share holder (investors namely Hammad Ahmed, Hafiz Talha Akhtar and
Haseeb Ahmed) who will invest 3 million collectively. Remaining, 2.5 million will be taken as
loan from the bank by showing our asset (land worth 1.5 million and 1 million each). 30%
profit will be taken by M. Awais while 20% profit will be taken by Hamza Raheel. Remaining
50% profit will be divided equally between 4 heads of department.
Business System:
The company will focus on building flexible and innovative toothbrushes. The first design and
model to work on will be an Auto Fresh toothbrush. The mission of the company is to provide
customers a complete protection and a product which is smart, light weight, flexible and much
economical. The company will operate its services from a central head office, which will be
setup in Lahore. The company head office will be comprised of six major departments which all
should be integrated and interlinked closely to work as a single unit. The head office will be
responsible for organizing, controlling and managing all the internal and external organizational
functions and business activities including manufacturing of the product and launching it. The
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Business system will be designed to run following activities through the life cycle of the
product, the figure shows the business model of our company.
The company will set up policies in order to eliminate the time wastage, making process more
effective and efficient, improve productivity, sales and will continuously work on improving the
market campaigns by effective means. The business will adapt a sustainable business model
which will organize and manage all organs of the company as single unit.
B. Operational Controls:
Control and Monitoring:
R&D department will within insure that the entire above key factor are being achieved by the
company along with this marketing department will also help R&D to achieved above factor.
Marketing department will manage a monitoring team which will check the performance
periodically. We will arrange a general body meeting by inviting different departments like
Marketing, Finance, R &D managers in which we will see that have they achieved their desired
target. And we will also try to figure out our mistakes. The monitoring team will also check that
is the plan working or not if not then what should be done. There could be two possibilities,
first one that the firm may switch to plan B or may they update their plan.
Research
and
develop
Industrial
Design
Company
Manufact
uring
company
Raw material
approval
from R&D
Marketin
g
Departme
Distribut
ors
Services
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Financial Plan:
A. Current Funding Requirement:
Auto fresh company will form partnership to establish themselves in the market. In our
business, there will two owners namely Muhammad Awais (Land lord) and Hamza Raheel
(already running small business). These two will invest 5 million each in the business. While,
there will be three share holder (investors namely Hammad Ahmed, Hafiz Talha Akhtar and
Haseeb Ahmed) who will invest 3 million collectively. Remaining, 2.5 million will be taken as
loan from the bank by showing our asset (land worth 1.5 million and 1 million each). 30%
profit will be taken by M. Awais while 20% profit will be taken by Hamza Raheel. Remaining
50% profit will be divided equally between 4 heads of department.
Positions to be filled:
The head office of the company will be set up in Lahore. The company Head office will be
comprised of six major departments; every department will have an executive heads and will
posses many skilled professional from their fields. The salaries to hired professional will be
given according to their professional and technical skills and experiences. The job postings will
be announced and interested personal will be interviewed by CEO and all executive heads of
the departments.
Finance Department:CEO of the company will be the head of finance department. The department will hire
two financial professionals with good experience and highly qualified skills and
professional background in accounts and auditing. Department responsibilities include
keeping all financial records including budgets, salaries, investments, profit, loss, and
income, tax, auditing and managing all of them in an organized fashion.
Marketing and Advertisement Department:The department will be responsible for setting up the marketing strategy for the
product, implementation and proper commercialization of the product in the market
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through various means. The department will have an executive head who will set up the
marketing and advertisement policies. Two professionals will be hired for the marketing
purpose and media controllers for controlling advertisement and promotion of the
product.
Human Resource Management Department :The department will be supervised by executive head and will hire three professionals in
order to hire employs, give them training, deal with the issues of employ and
transferring the policies of the company to the employs. During the hiring and
recruitment process all head of departments will also involve.
Distribution Department:This department will again be run by the head and 5 people will be hire for Distribution
department 5 people will work distributor for department while. Distribution policies
will be set up by the Production Department.
Research & Development Department:The department in start will have a contract with industrial design company for the
initial designs of the Auto Fresh toothbrush. The department will also be responsible for
setting up an R&D LAB and infrastructure inside the company, building and developing
innovative and advanced designs and models and also works on the feasibility study of
the product, the department will be controlled by Executive head and further more
department will hire two professional personal for R&D activities throughout the
product life-cycle.The department will also be responsible for the coordination between industrial design
company and the production department throughout the life cycle of the toothbrush.
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Accounts Department:This department will hire two more people who will deal with employs salaries and will
also their benefits like fridge benefits.
Name of Department Number of people Hired Offered and Proposed
Salary per month
1 Finance Department 2 will be decided according
to professional skills and
experience
2 Marketing Department 2 will be decided accordingto professional skills and
experience
3 Human Resource
Department
3 will be decided according
to professional skills and
experience
4
5
6
Distribution Department
Research and development
department
Accounts Department
5
2
2
will be decided according
to professional skills and
experience
will be decided according
to professional skills and
experience
will be decided according
to professional skills and
experience
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Growth Estimation
Initial few years are crucial for newly established companies. Many companies go bankruptcy
because of bad planning in their early lifetimes. In order to be sure about success of our new
business, we will pay much attention to our first two years. We intend to make a reasonablegrowth for first two years that is to reach 10% of toothbrush market of previously mentioned
cities. Considering the confidence that our patent provides us, 10% is not much optimistic.
Following figure shows our quarter based expectation for first two years and will guide the
management team that where they should be after every quarter.
.
According to our estimates and plans, we aim to take over 10% of overall market after two
years in the listed cities.
0
1
2
3
4
5
6
7
8
9
10
Year 1 Year 2
Quarter 1
Quarter 2
Quarter 3
Quarter 4
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Financial Analysis:
Cost & Income Analysis:
Toothbrush project is a global project and requires huge amount of money for the first year but
we are operating in only major cities of Pakistan so this will reduce our budget. In starting year
we might face loss but after one year, it will get a positive cash flow and after two years, it will
generate profit.
In this section, we breakdown the significant costs and make an analysis of investment versus
revenue.
The most important cost items are;
Research & development cost (including design) Advertisement cost Production cost Operating cost
Among those, research & development cost is fixed and cannot be reduced too much.
However, advertisement and production costs are flexible and can be modified according to the
invested capital. Before we continue with our detailed cost analysis, we want to present the
expected trends in different cost items first.
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As seen from the graphics, research development and advertisement costs are expected to be
declined in second year as our product design is finished and the customers become aware of
our product. However production cost we remain same while operational cost will increase.
Research & Development:
We have a research & development team of 3 people. However the task of this team is not the
initial design and development. We plan to buy support from an industrial company for the
initial design. The cost for this item only includes price of the design support. The salary of the
employees is included in operational cost.
Advertisement:
How much amount we can spend on advertisement very much depends on the invested money
we have. However, different levels of advertisement have different effects. The optimal
advertisement level must provide awareness for 60% of targeted customers. We think that one
month of TV advertisements and longer ongoing Internet advertisements will provide the
desired awareness. Although, the price for TV commercials differs too much, we assumed the
cost of one TV channel for one month as to be 34000.
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Production
The manufacturing of Auto Fresh toothbrush will be 23 per unit. So if we produce 1000 brushes
per month then the total manufacturing cost will be 23000.
Operation
We plan to hire 16 employees. Assuming the average salary of one employee to be 4683, total
employee cost will be 15000 quarterly for hired employees. Manufacturing plant will require
150000 which will be building after 2 years. Distribution cost is based on the product amount.
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In the following table, we present total expected cost for the mentioned items.
Year
1
Year
1
Year
1
Year1 T.C
for
Year
1
Year
2
Year
2
Year
2
Year2 T.C
for
Year
2
T.C
for
two
years
Quar
ter 1
Quar
ter 2
Quar
ter 3
Quarte
r 4
Quar
ter 1
Quar
ter 2
Quar
ter 3
Quarte
r 4
R&D
Departm
ent
Designin
g and
Develop
ment
cost
5000
00
5000
0
1000
00
1000
00
Advertis
ement
TV
advertise
ment
1000
00
1000
00
5000
0
50000 3000
00
5000
0
5000
0
2500
0
25000 1500
00
3570
00
Producti
on
Manufac
turing
cost
3450
0
6900
0
1035
00
6900
0
6900
0
6900
0
69000 2760
00
3795
00
Operatio
nal
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Salaries 2247
84
2247
84
2247
84
22478
4
8991
36
2247
84
2247
84
2247
84
22478
4
8991
36
1798
272
Manufac
turingplant
and
office
0 0 0 0 0 0 0 0 0 0 0
Distributi
on cost
4000
0
4000
0
4000
0
40000 1600
00
4000
0
4000
0
4000
0
40000 1600
00
3200
00
Totals 1020
000
6715
00
1365
00
15750
0
9600
00
1575
00
1575
00
15750
0Total
cumul
ative
cost
for 1
year
1562
636
Total
cumul
ative
cost
for
2nd
year
1485
136
Total
cumul
ative
2954
772
R.S
Total expected cost for two years, as seen from the table, is 2954772 R.S
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Estimated Per Year Profit:
If we get 15% profit per month then we expected to earn estimated 2109558 Rs. at the end of
1st
year and 2nd
year profit will be 2673244.8 Rs.
Profit Loss Statement:
If we get 15% profit per month then we expected to earn estimated 2954772 Rs. at the end of
2nd
year.
Revenue
Total Income 9307531.8
_______________________________________________________________________
Costs
Research & development 100000
Advertisement 357000
Production 379500
Operational 2118272
_______________________________________________________________________
Total Cost 2954772
_________________________________________________________________________
Net Income (Profit) 6352759.8 Rs.
The salaries of heads of departments will be given from profit we earn according the contract
we will sign when we start our business.
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Production capacity:
Company order to bruce company to produce 1000 units per month and deliver the main area
of the Lahore, Faislabad and Multan like retail store metro etc
Operating advantage
Auto fresh company do not produce themselves they give the two year production contract to
the other company which have also manufacturing plant, raw material and other resources
which help in production process .The advantage of auto fresh company to overcome the plant
cost, production cost which is maintains of machinery and labor cost. Furthermore the land
expenses and electricity charges do not bear the auto fresh company.
Success indicators:
Highly skilled and experienced employees Cost effective Product Differentiation Refillable with paste
Strategic Plan
SWOT ANALYSIS:
Strengths
First mover Flexibility product Attracting for investors Refillable with paste Cost effective Product Differentiation
Weaknesses
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Low brand image Lack of resources Lack of awareness to customers
Opportunities
Joint venture Growing global market of Toothbrush Capture more investors because of product uniqueness.
Threats
Political Instability Increasing number of Competitors Chances of failure Many follower exist in market Economic Instability
Strategies:
Strategic AllianceAs, we are the first mover and no other substitute available in the market so strategic
alliance will be easy for us or joint venture. We will also become financially strong too
and brand image will also build and with it we will be able to fulfill our resources.
Investor can also be attract easily then.
Intellectual Property RightWe will patent our idea to avoid from market follower.
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Low cost StrategyDue to economical instability, buying power of customers can reduce. For this purpose
we make refillable brush so that customer can afford it also we can reduce
advertisement cost to reduce its cost.