Business plan for a computer hardware shop in Pakistan.
DEDICATION
* To our creator who bestowed on us the meaning of life
* Our parents with greatest gratitude whose love and prayers have always been a source of strength for us.
* Our mentor who coached and inspired us, and gave us courage to pursue against all odds
* Our friends who were dedicated and made a committed team to support the work
Acknowledgement
We would like to acknowledge the contributions of the following groups and individuals to the development of our presentation.
Prof. Muhammad Rafiq at Superior University, Lahore..
One of our cousin Javed Khan directed us to a wide range of resources on the web and in his library stacks. He answered all of our questions as well as asked me questions that helped us to narrow my search. Further, he helped us figure out correct documentation for sources that did not fit the Research Guide examples. We also worked with librarians at University Library who helped us locate primary sources.
My class peer research group: Mirza Huzaifa, M. Shahzad, , Muneed Ahmad,
M. Shahzad, Huzaifa and Muneeb Ahmad helped me to refine my thesis and pointed out weaknesses in organization. Shahzad and bilal directed me to two resources that they had used so that I could find more information to elaborate on a point that I had insufficiently developed. Additionally, Ahmad asked me questions about my research that helped me realize that some weaknesses were the result of a focus that was too general. Although at first we were annoyed, but the team effort, enthusiasm and unrelenting chant pushed us to go beyond the obvious statements we had been making.
Our parents who gave us courage to do all this with strength and passion.
Executive summary
By focusing on its strengths, its key customers, and the underlying values they MAVEN Tech will provide customers with those products and services which are unique and substantial in the market. Our vision and strategic focus on adding value to our target market segments, the small business and high-end home office users, in our local market.
Our mission is to improve the business by gratifying the real needs of small businesses to high-end home office businesses for reliable technology including hardware, software and all related services. Our mission is to supply clients with state-of-the-art computers and computer related products.
The main purpose behind the establishment of MAVEN Tech is to educate masses
about computers and to provide them necessary quality hardware. As a matter of fact, from
first day of the establishment we will provide genuine and quality products to our customers. MAVEN Tech will never compromise on quality to make profits. This is the
only reason that MAVEN Tech will be ranked among the Top Resellers all over Pakistan with its Lahore Outlet and in future nationwide.
Keeping in view the need of time, we will always strive to introduce the latest products. As a matter of fact MAVEN Tech will not only be the top ranked retailer but we will also be the distributor for the products which are considered to be unique in their kind and difficult to find. Due to the availability of such products it will be possible for a common person to use and facilitate himself with the latest inventions.
Not only in Pakistan but also abroad users will get themselves updated by using our website. Our Website will be updated daily and it will contain not only the prices of the products but also useful links and configurations by which it will be easier for the customers to choose the right product.
With respect to Product Distribution, MAVEN Tech will be popular among the dealers across Pakistan. Specially in gaming and graphic products the dealers emphasize on using the world famous brands for graphic cards and memories which we will import. US Robotics does not require any introduction when it comes to networking products and as a distributor for US Robotics, MAVEN Computers will made possible for common person as well as in corporate to have easy data connectivity.
The Business
Opportunity
Pakistan is a fruitful place for businessman & entrepreneurs.
Many of the business flourish in Pakistan & earned profits in this country & many of the potential business are still waiting for investors to invest their capital & help our business sector.
In recent decades, computer usage has become an increasingly important need which is serving in all the aspects of technological world. In all the fields where computer usage is a basic need e.g., in the corporate sector, home usage, educational institutes, government sector and the technological bodies which are in real innovationg and enhancing the use of computers integrated in robots and exploring machines.
According to a research, the Estimate earning potential per year is US $ 8.8 million. These figures tell us about the attractiveness of the potential industry.
Description of the Business
We are Setting up a Business of Computer reseller for public and bussiness use to create awareness and sense of business through innovative products, techniques, advertisement and collaboration with other dealers.
To identify the opportunity it is needed to have a visionary eye in the environment of the person who want take risk & create employment for others for the sake of some profit so our business come into existence. It is evident to all of us who are concerned about Pakistani business environment that there are so many adversities while doing business so how we can reduce them and facilitate our economy. So after deep analysis and market research we came to know that in Pakistan most of the corporate sectors and private & government organizations & institution are using computers in their relevant industries so it would be a immense chance to start this business and help people provide consultation for their daily life computer usage and networking solutions.
Our main purposes of the business are:
• To develop interest among people about new products.
• To inform them about New acessories and products.
• To inform them about new trends of computers.
• To provide our customer specific products.
• To fulfill the needs of our customer.
Our mission statement is
• "To provide the youth a quality, outstanding, latest and authorized business information and innovations by using latest technology"
Our main mission plans are:
* To provide our customer imported product from different countries.
* Aware people about the latest products and innovative product in market.
* Create a relationship between customers and different dealers of new products.
* Provide people a corner to buy products of their own choice.
* Inform People how to apply business concepts and theories in practical life.
* Make people familiar with latest product.
Goals and objectives
• We will move from low pricing to high pricing
• We will work on expanding our business by making outlets at different places
• We will further launch our outlets in other cites of Pakistan
• We will introduce new accessories & product which are not available yet in market
History
We are starting our business newly as this idea was generated by one of our colleague Muhammad Ali BBA (hons) who initiated this idea to start a computer reseller shop. As in the current technological world hardware needs are increasing drastically and to fulfill those demands we must choose the best quality and reliable products. People are facing many adversities in choosing the best and most suitable hardware for their requirements. People often find it difficult to find the best and reliable products to which we are giving solutions. This idea was later appreciated by all the group members and we start working on it to give people complete solution to their technological needs and provide them with the best quality brands.
MISSION STATEMENT
"To provide the youth a quality, outstanding, latest and authorized business information and innovations by using latest technology"
VISION STATEMENT
"Aware people about the latest products and innovative products in market"
OBJECTIVES
* The main objective of Maven tech is to create awareness among the people about latest products.
* Mavne's objective is to promote the product lines.
* Maven Tech has the advantage to provide most renowned brands products which are of high quality and it will compete with its competitors to sustain that advantage.
* Maven Tech wants to gain the maximum market share.
* Maven Tech wants to provide the maximum value to its customers and its stakeholders.
BUSINESS MODEL
Description Of Business Model
Business model of Maven Tech is quite simple. First, we identify and forecast the demand for the products that are most demanded in the market. For this we need an outlet, where we sell these products. Then suppliers will provide the products in form of different hardware, software and technology equipment etc. They will provide this material on the daily basis, in order to meet the market demand. This raw material will be kept at the outlet, where they will be showed and we will assemble the complete computer at our assembling store form where it would be handed over to the customer or would be delivered if asked.
TARGET MARKET
Class A Class B Class C
Description Of Target Market
Products at Maven Tech are of best quality and are at competitive rates, so everyone can afford it.
* Social Economic Class A includes upper or elite class
* Social Economic Class B includes upper middle income class people.
* Social Economic Class C includes lower middle class people.
SUSTAINABLE COMPETITIVE ADVANTAGE
Sustainable competitive advantage is made by the combination of two elements that includes,
Core competency
First element is core competency which is a competitive advantage of a organization. Maven Tech is providing those products which are very hard to find in the market and if so than the prices are too high. We are providing the best quality products at the competitive rates. These products had never been sold in any other resellers.
Strategic Asset
Maven Tech has its business model, product differentiation, management team as its strategic assets, which combinable with core competency creates a sustainable advantage for Maven Tech.
CURRENT STATUS AND REQUIREMENTS
Maven Tech has a first mover advantage in a sense that no competitor is having such products. Every shop in the market is his direct competitors. Thus we can define our current status and requirements.
Current status
Maven Tech is currently in an introductory stage. We have finance and budget of 10 million PKR under which they have to cover their all expenses. The management team has gone through all its legal documentation with all terms and conditions for the business that they have decided to launch. The first outlet of Maven Tech is going to be at Hafeez Centre.
Future requirements
Initially, Maven Tech needs a building to operate and then it will hire employees like engineers, security guard, workers etc. They will also have to purchase products which have to sale. After meeting all the operating expenses it is not necessary to take money or loan to meet further expenses.
Management Team
MAVEN Tech believes in professionalism and its values. We have the one of the best human resource to run this project who are experienced and having very innovative and creative minds. They are the real tools by which Maven Tech will succeed in the market.
Chief Executive Officer:
Muhammad Ali Gulraiz will be the CEO of the organization. He is an excellent communicator & motivator. He is currently a student of BBA (Hons) and has worked at many organizations. His skills and experience makes him an excellent candidate for this job.
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Management Team
MAVEN Tech believes in professionalism and its values. We have the one of the best human resource to run this project who are experienced and having very innovative and creative minds. They are the real tools by which Maven Tech will succeed in the market.
Chief Executive Officer:
Muhammad Ali Gulraiz will be the CEO of the organization. He is an excellent communicator & motivator. He is currently a student of BBA (Hons) and has worked at many organizations. His skills and experience makes him an excellent candidate for this job.
Director General Marketing:
Mirza Huzaifa Asif will be leading the marketing activities of the organization. He is truly a Marketing Professional. He is doing BBA (Hons) with majors in marketing and have made some outstanding marketing plans. His excellent communication, negotiation and client handling skills make him eligible for this post. He has also a rich experience of working in different organizations as a marketing professional.
Director General Finance:
Mr. Muneeb Ahmed is the finance head of Maven Tech. He is doing BBA finance and has an experience of leading many financial campaigns in different organizations. He is equipped with all the skills and abilities this organizations needs.
Manager Replacements & Administration:
Mr. M. Shahzad is in charge of the entire human resource and administration of the company. He will be providing the organization with the competent human resource when ever required. He is also responsible for the day to day activities and smoothly running them.
Other Professionals:
Other professionals include:-
a. There will be 2 computer engineers who will handle all the troubleshooting and checking.
b. There will be 2 replacement collector staff that will assemble the hardware plus handle the replacements.
c. We will have 3 other workers at our showroom and 2 guards.
KEY PROFESSIONAL SERVICE PROVIDERS
Law Firm:
MALIK LAW ASSOCIATES:
Maven Tech has contacted to Mr. Ch. Muhammad Ali who is an Advocate of High Court and member of Lahore High Court Bar Association, to handle our legal issues like employee's law, environmental regulations, property and estate, assets, finance and securities etc. He is providing his services to Maven Tech for free of cost.
Mob: 0333-4821991
5- Walton Road, Lahore
Accounting and Business Consultancy Firm
Maven Tech does not require any accounting and business consultation firm to operate their functions.
ADVISORY BOARD
Maven Tech's board of advisors includes the following personals:
* Mr. Muhammad Rafiq (Advocate High Court)
* Mr. Farooq (Deputy General & Area Manager, HBL)
* Mr. Ali (Owner of pizza planet, UK)
These personals are involved in providing advice and guidance to Maven Tech.
ORGANIZATIONAL CHART OF MAVEN TECHNOLOGIES
DESCRIPTION OF ORGANIZATION CHART
Replacement and Administration Department
Maven Tech wants to provide the best quality in their products, which needs proper supply of products through dealers to the customers. Thus Replacement and Admin department will focus on the regular and proper supply of raw material, which is needed on the daily basis. Maven Tech's main focus is on the quality of the products, which it is going to offer. This department will be responsible for making sure the best quality of its products. This department will focus on the identifying the demand and number of employees that are required in the outlet. It will set the rules and policies for employees along with the planning of recruiting and selecting best employees.
This department is going to be headed by Mr. Muhammad Shahzad.
Finance Department
This department main focus is to handle all the financial aspects of the business. This will also be responsible in establishing budget policies while seeing the financial status of Maven Tech.
Marketing Department
This department will mainly focus on advertisement, sales promotions, and awareness campaigns through different mediums.
.
Job Description Of The Key Management
CHIEF EXECUTIVE OFFICER:
Job Description:
a. Responsible for the day to day activities, management and smooth functioning of the organization.
b. All officials of the organization shall work under the direct supervision of Chief Executive Officer.
c. Exercise financial powers in accordance with the financial policy.
d. To pass all bills, vouchers receipts due for payment by the organization in accordance with the financial policy. All such documents shall be presented to him by the Director General Finance daily entered in the accounts ledger and attested by concerned officials of Maven tech.
e. Developing and Designing strategies and policies for the organization.
f. Prescribe the duties of the employees and staff of organization.
g. To appoint, remove and discharge any member of non managerial staff.
Director General Marketing:
Job Description:
. Responsible for designing, direction and coordination of marketing activities and policies to promote Maven Tech.
2. Responsible for designing, execution and managing annual marketing programmes at local, national and international levels meeting organizational objectives.
3. Responsible for planning and execution of promotional ATL & BTL activities through print/electronic media, media planning, product positioning strategies and branding.
4. Responsible for sales forecasting and strategic planning to ensure the sale, analyzing business developments and monitoring market trends.
5. Responsible for corporate communication.
6. Responsible for brand management and market research.
7. Responsible for liaison with government departments like BOI, Commerce & investment Dept, overseas commercial attaches and information department.
8. Coordinate and participate in promotional activities like trade shows, exhibitions, seminars and conferences.
9. Liaison with advertising Agencies on ongoing campaigns.
0. Responsible for successful launching of the projects and follow up.
1. Responsible for Revenue Collection from Customers.
2. Responsible for CRM to achieve customer satisfaction.
3. Responsible for one window operation.
4. Responsible for event management activities.
5. Coordinate all printing works of Maven Tech.
Director General Finance:
Job Description:
. Responsible for all financial and fiscal management aspects of the company as approved by the BOD.
2. Dealing with different banks.
3. Establish and maintain appropriate internal control safeguards.
4. Interact with other managers to provide consultative support to planning initiatives through financial and management information analysis, reports and recommendations.
5. Review and approval of daily Cash, Bank, Adjustments and Receipt vouchers.
6. Review of Bank deposits and monthly profit on deposits on outstanding balance.
7. Payments of contractors
8. Confirmation of deduction of WH Tax, Retention, Mobilization Advance or any recovery provisional advance to the contractor.
9. Confirmation and re-validation of bank guarantees provided by the contractors.
0. Reply / comments on queries raised by the internal auditors.
1. Dealing with tax consultant, legal advisor regarding any legal obligation.
2. Replies to Income Tax and Sales Tax Department regarding any information/ query raised by the said department.
3. Written reply to the letters of Industries and Finance Department of the Government of the Punjab.
4. Preparation of budget and expected cash flows as and when required by the Industries and Finance Department.
5. Preparation of reports required for the meeting of BODs.
6. Coordinate the preparation of Annual and Semi Annual financial statements, special analyses and information reports.
7. Reply to the queries of Marketing, and Admin department.
8. Review of filing of monthly/quarterly and annual statements of income tax and sales tax and Tax returns.
9. Periodical physical cash count.
20. Review of weekly report of bank receipts and bank payments.
21. Directly reportable to Chief Operating Officer regarding any information / explanation required.
22. Monitoring internal control and functions of Finance Department.
23. Monitor and develop work allocation, training, problem resolution, performance evaluation and building of an effective team.
24. Other duties as assigned by the Chief Operating Officer.
Manager Replacement & Administration:
Job description:
. Act as advisor to CEO on Coordination and Administrative matters.
2. Maintain liaison /coordination with various utility department regarding development activities.
3. Ensure timely publication of advertisements regarding hiring of consultants / contractors for provision of utilities.
4. Prepare term of reference for the prospective contractors / consultants for landscaping.
5. Assist in the security of documents submitted by consultants / contractors for landscaping.
6. Deal all the matters for the replacements and troubleshooting.
7. Coordinate with Marketing wing for smooth implementation of contracts by providing full assistance.
8. Perform protocol duties whenever required.
9. Process administrative decisions of all administrative matters.
0. Analyze / evaluate and recommend to CEO, matters pertaining to procurement and
1. Administration of Maven Tech Assembling store house
2. Process demand of office furniture.
3. Ensure maintenance and analysis of administrative data.
4. Ensure general maintenance of office.
5. Ensure timely stock taking, survey boards and condemnation boards as and when required.
6. Carry out purchases for offices.
7. Coordinate recruitment and selection of employees.
8. Maintain personal documents of all employees.
9. Ensure the implementation of staff welfare policies.
20. Provision of security staff as and when required.
LEGAL FORM OF OWNERSHIP
Maven Tech is generally a partnership business. Maven Tech is registered under the Partnership Act 1932.
Ownership Status
Maven Tech, being a startup business, have four active partners with the equal equity of 2.5 million PKR.
Active Partners
M. Ali, Mirza Huzaifa Asif, M. Shahzad and Muneeb Ahmad are the active partners of Maven Tech which are pooling in the finance as well as their efforts to make the organization growing and profitable.
Owners Liability
Owner's liability in Maven Tech is limited which means that each owner is liable to the organization, only to the extent of his or her share in the capital.
Continuity Of The Business
In case if any of the members of the organization gets deceased or gets retired from the organization then it will not harm the continuity of the business. The transfer of the interest of that member will be done as per the terms and conditions described in the bylaws of the company.
Profits And Losses Distribution
Profits earned and losses faced by the organization will be divided among all the members of the organization on the basis of their capital investments in the organization.
INDUSTRY ANALYSIS
Industry Description
Lahore is always a city with growing prosperity and developing at a drastic rate. In such a huge industry of technology, our people are more concerned with the quality and competitive products. Maven Tech is entering into this big Hardware industry, by first time promoting the best international brand products, in order to facilitate our customers value added products which will satisfy their needs in real essence. We have analyzed the approximate numbers of competitors in the market, size of industry, industry attractiveness, and the potential profits. We have also examined the problem that we could face by entering into this industry along with the strategies to cope up with them.
Industry Trends
Studying about industry trends is one of the first and most important steps in conducting industry analysis. This industry is helpful in analyzing and identifying the threats and profits in the industry. We can study these trends from different data's that are available in different sources, which includes:
* National Hardware Association
* State and Local Traders Associations
* Industry Groups (such as the International Technological Manufacturers Association)
* Industry Publications
The trend about the technology industry shows that people are moving a lot towards computer usage. Analyzing this opportunity Maven Tech is promoting these products by adding the best quality factor in them, to create value for the computer lovers.
Industrial trends can be measured by following factors:
Organizational Environment
In organizational environment we have:
External environment
External environment of any company includes the following two factors:
1- INDUSTRY ENVIRONMENT
2- MACRO ENVIRONMENT
Industry Environment
In industrial environment following factors can greatly influence the Maven tech:
* Threat of new entrants
* Bargaining power of buyer
* Bargaining power of supplier
* Rivalry among competitors
* Substitutability
* Threat Of New Entrant (HIGH)
Threat of new entrants for Maven Tech is high. This is because computer industry is a growing industry, with large numbers of competitors and profits. This attracts the new entrants to get enter into this industry.
* Rivalry Among Competitors (MEDIUM)
Maven Tech has a medium rivalry among its competitors because not all the competitors are providing the best brands.
* Substitutability (NORMAL)
Substitutability for our Maven Tech is normal. Not every reseller can be the substitute of Maven Tech because of the international quality brands.
* Bargaining power of Buyer (LOW)
Bargaining power of the buyer with Maven Tech is low because of the only availability of the best latest products in the market and the best quality promise.
* Bargaining Power Of The Supplier (LOW)
Bargaining power of the supplier is low because of the availability of large number of suppliers in the market.
PORTERS MODEL
Competitive forces
Threat to Industry Profitability
Low
Medium
High
Threat of substitutes
*
Threat of new entrants
*
Rivalry among existing firms
*
Bargaining power of suppliers
*
Bargaining power of customers
*
MACRO ENVIRONMENT
Macro environment of Maven Tech includes the following factors:
* Political Forces
Legal & political forces are much important for each & every industry. So such forces can highly influence any company. In Pakistan, there is so much political instability that it can highly influence Maven Tech to operate.
* Technological Forces
Technological factor is involved in this project in a way that customers e.g. upper class, schools, universities etc can influence the sales.
* Social Forces
Social forces of any country show how the values and needs of that country's people can affect the organization. In case of Maven Tech, this factor would highly influence the organization.
* Economic Forces
Economic forces of any country can affect the availability, production and distribution of resources among competing users. Now a day in Pakistan inflation is prevailing and it can affect Maven to a great extent.
The analyses of trends described above reflect a good position for Maven Tech in the industry.
* Industry Size
Lahore has always been famous for its different kinds of Technology, which includes a wide range of competitors. Thus technology industry of Lahore is one of the biggest industries. This also shows that the size of this industry is very large due to the presence various competitors and large number of competitors.
* Industry Attractiveness
Maven Tech is entering into restaurant industry. Restaurant industry is a growing industry, which reflects high return on investment. There are high profits in this industry, if a restaurant uses the appropriate strategies to capture the market share. Restaurant Industry is quite a huge industry, which contains a large number of competitors that has created an intense competition among the rivals, for their survival. But along with this restaurant industry contains a large number of customers that creates an opportunity for a start up to attract more customers in order to generate high profits.
* Profit Potential
Maven Tech has high profit potential as its production cost is quite low. And due to the attractive industry a large number of customers are available which will cause high profitability. Customers always want something good and new, and thus Maven Tech is focusing on providing them different products from their competitors to gain customer attraction which in turn would generate high profits.
* Industry life cycle
In industry life cycle computer industry is at the maturity stage, which reflects high return on investment. There are high profits in this industry.
SWOT ANALYSIS
Strengths
> Good Human Resources.
> Advancement with technology.
> Availability of Products.
> Competitive prices.
> Best Quality brands.
Weaknesses
> New in market.
> No discount.
> High competition.
> Unaffordable price
Opportunities
> Our idea is unique and there are less Dealers of new products
> Our all competitors are foreign
> We have less local competitors
Threats
> We are new in market.
> We have no experience.
> We are unaware with the ups and downs of Business.
> Popularity of other well-known and established Dealers like Galaxy Computers.
> We have a threat of red tape.
TARGET MARKET
Target Market Customer Volume
Our target market volume is almost every organization using computers and networking. That could be either universities, offices schools, home use, networking places and all government organizations. But still we have estimated a number of 2856,000 people living in different localities of Lahore, who have potential to but or update their machines and networking. Our main target people age ranges from 10years to 80years. This figure has been found out after a detailed segmentation, multi segmentation and then it has been adjusted.
Target Market Calculation
Population of Lahore
Below Poverty line (40%)
Middle/Upper class (60%)
Under 10yrs of age (20%)
Left 80%
Need updated replacements (85%)
Not interested
Potential Customers
7,000,000
2,800,000
4200000
4200000
840,000
3360,000
2856,000
504000
2856,000
Target Segment
Our target market volume is almost every organization using computers and networking which includes upper, middle and lower middle class. Along with this Maven Tech has segmented its target segment into the following category:
Geographical Segmentation
Maven Tech is a start up business; therefore it has geographically segmented its target market. This geographical region is LAHORE, city of lights.
Psychological Segmentation
Psychologically targeting, Maven Tech is concentrating its focus on Elite class, Upper Middle Class and Middle class.
Target Market
According to above segmentation we are able to target our market, which belongs to almost every age group but it excludes people above 80. And this target market includes all the areas of Lahore. Even an average income person can afford and get all the technology in a present and modern scenario under the one roof. Maven Tech not only provides the products but also added the value towards its services.
COMPETITIVE POSITION WITHIN TARGET MARKET
Competitor Analysis
Competitors of Maven Tech fall into the following categories:
* Direct competitors
Very few direct competitors of Maven Tech include Galaxy Computers, Ingrem computers etc. These competitors, sells some products like Maven Tech, which includes PC's, Laptops, memory modules and other hardwares etc are available along with a wide range of different products, which suppress their presence e.g.
* GALAXY COMPUTERS
5 1-F HAFEEZ CENTRE.
2ND FLOOR, GULBERG III LAHORE.
* Micro Ingram computers
HAFEEZ CENTRE GULBERG III LAHORE.
* Builders and MSI
* Abrar Computers etc.
* Indirect Competitors
Maven Tech has 2 types of indirect competitors.
. Competitors With used items
This includes all of the organizations, who are selling their products on wholesale or 2nd hand.
2. Competitors With Same international brands
This includes people who are giving quality products which is very rare but at a high price.
MARKETING PLAN
MARKETING DEPARTMENT:
Awareness campaign
We will create awareness about our products of MAVEN TECH through the use of different mediums. In this campaign we are focusing on our products, reasons that why we are launching this business, how we are different from others and how Maven Tech will use standard quality in its products. We use broachers, leaflet, billboards, print media and cable ads to make people awareness about Maven Tech.
Sales Forecasting Procedures
Different sales forecasting procedures will be adopted by Maven Tech depending upon the type of the available data for the forecasting.
The methods can be any of these:
* Consumer survey
* Sales force survey
* Chain ratio method
* Detailed statistical analysis
* Being a start up firm Maven Tech does not have any past data, so it has used its consumer survey in 1st forecasting.
MARKETING DEPARTMENT'S ORGANIZATIONAL STRUCTURE
The department of marketing in Maven Tech will be formed after taking into account the need of marketing efforts that are required for Maven Tech. We have a marketing manager who will handle all the operations regarding marketing.
MARKETING OBJECTIVES
As far as the marketing objectives are concerned we have to differentiate the overall goals from the specific marketing goals. The description of these goals is as below.
Over All Marketing Goals For First Five Years
* The overall marketing goals targeted by Maven Tech cover a wide range of the potential aspects that are necessary for a new business concern to flourish. This includes the following:
* Maven Tech will make its products valuable to its customers through marketing campaign.
* To counter the campaigns run by the competitors whether direct or indirect in order to protect and promote our brand image.
* To locate and target the substantial business opportunities in the market for the organization.
*
Specific Goals For The First Year
The specific goals in terms of marketing are listed as below
Estimated Sales Target
We have subdivided the sales target of the first year after keeping in view the adoption diffusion process of demand generation.
The sales figures for the relevant demand portions are listed here as below:
Our sales ration to achieve
* Make our Company market leader till Dec 2011
* Increase our sales to double Dec 2012.
* To make our Company famous in every known city in Pakistan.
Estimated Market Share
Out of the whole industry of Lahore we are willing to capture the market share in the following pattern with the help of our quality products and strong marketing campaign.
* Innovators (2.5%) in the first 12 months
* Early adopters (13.5%) up to the 24th month
* Early majority (34%) up to the end of the four year.
* Late majority (34%) up to the end of 4 years.
* Laggards (16%) up to the end of 3 years.
MARKETING MIX
Product Planning:
In product planning we will be focusing on product portfolio management Total Quality Management (TQM) and also the strategic decision making of our product. Maven Tech's product line contains those products that are most demanded and up to date and these products would be different from its direct and indirect competitors to a great extent. A company can provide the customer satisfaction on the basis of different aspects like Quality, Benefits, Packaging and so on. Thus according to Maven Tech, quality is;
"When our customers come back, having full satisfaction in their heart, for Maven Tech's quality"
The main factors included in product strategy session are:
ISO Certification
Maven Tech is certified from ISO, for providing the good quality which make its technology products more hygiene for customers.
International brands
It's a key issue in the life of every organization to absorb immense competitive pressure. Maven Tech is introducing those products that are not easily available in the market.
The Innovation Strategies
Innovation strategies being used at Maven Tech are either offensive strategies or opportunist or the combination of both, depends upon the market and strategy risk. Development of Maven Tech is an indication of our offensive strategy
Features and Benefits
The products that are offered by Maven Tech are imported from international renowned dealers, we will provide 1 year warranty of all products which is the best feature of Maven Tech.
PRICE:
We are selling our products at competitive rates because we are selling original best quality brands which we import from foreign dealers. People usually want reliable and quality products for which they not compromise with quality for the sake of Price.
We will provide our product on Two different ways:
. Installment method
2. Full payment method
• For the ease of the customers we provide weekly or monthly payment method i.e installment method
• Full payment is for those customers who pay at the spot for that product which they choose to buy.
PLACE:
We will work on the most busy market of Lahore known as Hafiz Center in order to make our Business in running condition. Gulberg is in the centre of the city and easily accessible for all the customers.
PROMOTION:
We will promote our company by different means E.g.,
. Advertisement
2. Fair price product
3. Online sale
4. Home Delivery Vehicle
5. Positioning
Product Life Cycle
In product life cycle Maven Tech is on the introductory stage, where it has low or almost no profits but on the basis of its strategies it will soon recover the breakeven point.
Maven Tech is on introductory stage because we are new in market. We are starting our business for the first time and have no past experience.
The position of our product in the BCG matrix can be identified on the basis of following facts regarding our product:
* Industry growth rate is very high
* low market share is there for the product
* the product has strong differential advantage
* Huge marketing efforts are required to make the product a star.
Maven Tech's Image As Brand
The image of Maven Tech as a brand will be shaped as a value added and different from the products that are already available in the market. For this, the marketing efforts will be done to take a special and different position among the targeted customers.
Branding Strategy
Maven Tech will be promoting as an entirely different and new brand in the market with its unique and distinctive attributes. It is a brand of different shades (attributes) for different demand clusters present in the market.
Product Category
Maven Tech can be categorized as a new brand with wide range product category among the computer lovers in the Lahore, which needs intensified marketing efforts.
Brand Positioning
Maven Tech will position its brand among customers on the basis of the following:
Desirable Benefits
Maven Tech is introducing a product line that are not easily available in market and are from world's renowned brands. Maven Tech is promoting them for the first time by adding benefits like product differentiation, quality and so on.
Beliefs and Value
As Maven Tech is providing best gaming hardware, by providing a wide range of international products manufactured abroad. In short Maven Tech is promoting the beliefs of providing quality.
Usability Testing
Maven Tech has conducted a usability testing in which a sample of people was offered different products to eat.
PRICING STRATEGIES
Maven Tech is a new business, so it cannot offer very high prices for its products.
Pricing Objectives
Maven Tech wants to have high growth rate hence we have to set that price for our product which gives us maximum possible profits in the initial stage of our organization. In pricing, Maven Tech is focusing in the following strategies:
Market Penetration Strategy
Maven Tech is using market penetration strategy in which Maven Tech is offering high quality products on the competitive prices, in order to capture high market share.
Cost Based Strategy
For the pricing of products Maven Tech is following the cost based strategy, in which Maven Tech has decided to take 30% markup on cost price of each product, in order to cover up the cost and to reach near the breakeven point.
PRICING STRUCTURE
Standard PC Prices:
PROCESSOR : INTEL ATOM 1.6GHZ (512KB CACHE-533 MHZ FSB)
MOTHERBOARD : INTEL D945GCLF (SND+AGP+LAN-1MB CACHE-533BUS-DDRII)
MEMORY : KINGSTON 1GB DDRII (800 BUS)
HARD DRIVE : 250GB 3.5" SATA-II 7200RPM
OPTICAL DRIVE : ASUS CD-ROM
CHASSIS : ATX NORMAL
MOUSE : STANDARD PS2, KEYBOARD : STANDARD PS2
PROCESSOR : INTEL DUAL CORE E5400 2.7Ghz (2MB CACHE - 800Mhz FSB)
MOTHERBOARD : INTEL DG41RQ (LGA775-SND+AGP+GIGA LAN-1333MHZ FSB)
MEMORY : KINGSTON 1GB DDRII (800 BUS)
HARD DRIVE : 250GB 3.5" SATA-II 7200RPM
OPTICAL DRIVE : SAMSUNG DVD-RW SATA
CHASSIS : LEGEND THERMAL HT SUPPORT
MOUSE : A4 TECH , KEYBOARD : A4 TECH
PROCESSOR : INTEL CORE 2 DUO E7500 2.93GHZ (3MB CACHE-1066 MHZ FSB)
MOTHERBOARD : INTEL DG41RQ (LGA775-SND+AGP+GIGA LAN-1333MHZ FSB)
MEMORY : CORSAIR 2GB DDRII (800 BUS)
HARD DRIVE : 250GB 3.5" SATA-II 7200RPM
OPTICAL DRIVE : SAMSUNG DVD-RW SATA
CHASSIS : LEGEND THERMAL HT SUPPORT
MOUSE : A4 TECH , KEYBOARD : A4 TECH
PROCESSOR : INTEL CORE i3 530 2.93Ghz (4MB CACHE - 2.5 GT/s)
MOTHERBOARD : INTEL DH55HC (AGP+SND+GIGA LAN)
MEMORY : CORSAIR 2GB DDRIII (1333 BUS)
HARD DRIVE : 500GB 3.5" SATA-II 7200RPM
OPTICAL DRIVE : SAMSUNG DVD-RW SATA
CHASSIS : COOLERM MASTER CHASSIS CM ELITE
MOUSE : A4 TECH , KEYBOARD : A4 TECH
PROCESSOR : INTEL CORE i5 750 2.66Ghz (8MB CACHE - 2.5 GT/s)
MOTHERBOARD : INTEL DP55WB (SND+GIGA LAN)
MEMORY : CORSAIR 2GB DDRIII (1333 BUS)
GRAPHIC CARD : EVGA GT210 512MB (64-BITS)
HARD DRIVE : 500GB 3.5" SATA-II 7200RPM
OPTICAL DRIVE : SAMSUNG DVD-RW SATA
CHASSIS : COOLERM MASTER CHASSIS CM ELITE
MOUSE : A4 TECH , KEYBOARD : A4 TECH
PROCESSOR : INTEL CORE i7 860 2.8Ghz (8MB CACHE - 2.5 GT/s)
MOTHERBOARD : INTEL DP55WB (SND+GIGA LAN)
MEMORY : CORSAIR 2GB DDRIII (1333 BUS)
GRAPHIC CARD : EVGA GT210 512MB (64-BITS)
HARD DRIVE : 500GB 3.5" SATA-II 7200RPM
OPTICAL DRIVE : SAMSUNG DVD-RW SATA
CHASSIS : COOLERM MASTER CHASSIS CM ELITE
MOUSE : A4 TECH , KEYBOARD : A4 TECH
MEMORY CHIP
PRICE
CORSAIR DOMINATOR DDR3 TRIKIT 3X6G-1866 (2GBX3) RECOMMENDED FOR INTEL CORE i7 WITH FAN
28500
CORSAIR DOMINATOR-GT DDR3 TRIKIT 3X6G-1600 (2GBX3) RECOMMENDED FOR INTEL CORE i7
27500
CORSAIR DOMINATOR DDR3 TRIKIT 3X6G-1600 (2GBX3) RECOMMENDED FOR INTEL CORE i7
23500
CORSAIR XMS3 DDR3 TRIKIT 3X6G-1600 (2GBX3) RECOMMENDED FOR INTEL CORE i7
8000
CORSAIR DOMINATOR DDR3 TWIN KIT 2X4096-1600 (2GBX2) DUAL MEMORY KIT DDR3
4000
CORSAIR XMS3 DDR3 TWIN KIT 2X4096-1333 (2GBx2) XMS3 DUAL MEMORY KIT DDR3
2500
CORSAIR XMS3 DDR3 TWIN KIT 2X2048-1333 (1GBX2) XMS3 DUAL MEMORY KIT DDR3
7000
CORSAIR XMS2 TWIN2X2048-6400/800 BUS (1GBx2) XMS2 DUAL MEMORY KIT
4800
CORSAIR XMS2 TWIN2X4096-6400/800 BUS (2GBx2) XMS2 DUAL MEMORY KIT
9200
CORSAIR XMS2 CM 2GB-6400/800 BUS XMS XTREME SPEED GAMING MEMORY
4100
CORSAIR XMS2 CM 1GB-6400/800 BUS XMS XTREME SPEED GAMING MEMORY
2300
CORSAIR DDR3 2GB-1333 (P/N: VS2GB1333-D3) VALUE SELECT MEMORY
4900
CORSAIR DDR 512-400 (P/N: VS512MB400) VALUE SELECT MEMORY
750
CORSAIR (SOD) DDR 1GB-400 (P/N: VS11GSDS400) VALUE SELECT MEMORY
4200
CORSAIR (SOD) DDR 512-400 (P/N: VS512SDS400) VALUE SELECT MEMORY
2200
CORSAIR (SOD) DDRIII 2GB-1333 VALUE SELECT MEMORY
5400
CORSAIR (SOD) DDRIII 2GB-1066 (P/N: CM3X2GSD1066) VALUE SELECT MEMORY
5200
CORSAIR (SOD) DDRII 2GB-800 (P/N: VS2GSDS800D2) VALUE SELECT MEMORY
3700
CORSAIR (SOD) DDRII 1GB-800 (P/N: VS1GSDS800D2) VALUE SELECT MEMORY
2100
KINGSTON HYPER X DDR2 4GB/800 (2GBx2)
9000
KINGSTON HYPER X DDR2 2GB/800 (1GBx2)
5300
KINGSTON DDR3 2GB-1333
4750
KINGSTON DDRII 2GB-800
3750
KINGSTON DDRII 1GB-800
2000
KINGSTON (SODIMM) DDRII 2GB-800
3800
KINGSTON (SODIMM) DDRII 1GB-800
2100
And all the prices of:
PROMOTION
Fair price product
It is done by:
• Sale the product on 5% profit
• Buying more then one product will gain discount
• Product price will be affordable for customer
• Price of product will be little bit less then other competitors
Advertisement
This is the most important phase of running the business because it assists in finance and marketing of products. For this purpose we are using brochures, websites, flex banners, pump flits sms advertisement, ads on different websites, Tv commercials and other means of advertisement.
On Installment Product
We will provide our product on Two different ways:
. Installment method
2. Full payment method
• For the ease of the customers we provide weekly or monthly payment method i.e installment method
• Full payment is for those customers who pay at the spot for that product which they choose to buy.
Home Delivery Vehicle
• The major part of the business is transport and it require some vehicle to travel or to deliver some products.
• Our company provides our customer with free home delivery service of the product that they choose to buy.
Online sale
• People who don't have spare time to shop can shop online.
• Our all product will be available on our website www.maventech.com
• There are different methods of paying online.
. Credit card method
2. Hand to hand payment method
Positioning
? Positioning is basically an image of a company In customer mind.
? It is so difficult to make a better position in market where so strong competitors are already existing.
? Our main competitors are:
* Galaxy computers
* Abrar Computers and Network
* Builders and MSI
* Micro ingram Computers and
There are all foreign dealers who provide branded products and accessories and there are less amount of dealers in Pakistan. This is our advantage and we can make our position better. We will compete with them on;
* Price
* Quality
* Innovative product
* Special target market i.e Gaming freak people.
Channels of advertisement
* Word of mouth
* Personal relations
* Media
* Internet (web site
Word of mouth:
According to research conducted by an international marketing research firm words of mouth are the biggest source of publicity as one person aware of the product would tell many people about it.
The major part of our promotion emphasizes on the words of mouth .Which means we are going to different target people who would be an excellent source then we are going to explain them about the Maven Tech and its products and benefit and if they get convinced they are going to promote it by the other people who might be in their neighborhoods or family members. This basically includes families, children etc...
Operational plan
Operational plans are daily basis work. To run our business, there are five main operations:
* Competitive price products
* Online sale
* Advertisement
* On installment products
* Home Delivery vehicle
Personal relations
We are planning to publicize through our personal relations also, as people in our target market can talk a lot about the restaurants that are new entered in the market. This would help us to create a web in peoples mind about our product.
It means using your own links with people to advertise and promote your product in the market. They are usually your Friends, Family members, Relatives, Family friends and friends of friends.
This mode of advertisement and awareness campaign is cost less and is the best way of catching the market share.
Media
We would also make our product advertisement over media by getting on air our ads. But this would be done on a later stage when the market is well aware of the product.
Media promotion plan will include:
* TV Adds
* Flex Signs
* Billboards
Internet:
We would also hire a certain portion over the web so that we can advertise over the internet with the help of interactive website for the users and to explain them the importance of Technology and their quality.
Channels of distribution
Initially Maven Tech is operating only from one outlet, so it doesn't have any distribution channel right now. Maven Tech is using the following approach in this session:
We will import the products and accessories and parts from the foreign dealers who are selling all the worlds renowned latest brands. We will assemble and sale the products from our outlet and we will also provide home delivery service.
OPERATIONAL PLAN
Methods of Production and Delivery
Maven Tech has decided to import all the manufactured hardwares and accessories from the abroad dealers. Tehn those products would be displayed at the Maven Tech's outlet. Maven Tech will assemble all the accessories in the assembling area and will be handed over to the customer.
First Maven Tech will take the accessories, on the daily basis from its suppliers. This is because Maven Tech will become the second name of quality. Therefore hardwares will be purchased on daily basis to fulfill demand and quality products. When the raw material will be arrived at the outlet, a team of three people will unload the raw material and placed in the outlet.
Now when the customers come to outlet, a team of 2 workers will deal with them. After the customer will place the order, he or she will be given an invoice which he take to the assembling area and the computer would be handed over to the customer.. In the end we'll give them a ball point of Maven Tech which reminds them of our service. They will also be provided with the recommendation and complaint cards to share their views about our Maven Tech's products and services.
BUSINESS PARTNERSHIPS
Maven Tech is a partnership type of business which have four partners with equal equity.
All four of us will be given the positions of CEO, Marketing Manager, Finance manager and replacement and admin manager. All the operations would be done by the consultations of all the heads and negotiations would be done in regard of all other operations.
SOCIETAL ETHICAL AND CONSUMER ISSUES
We are going to discuss the societal, ethical and consumer issues separately to clarify our strategies towards each of them.
SOCIETAL RESPONSIBILITY APPROACHES
We are discussing our responsibility approaches towards different sections of society as below:
Towards general public
* Community involvement
* Hiring hard-core unemployed
* Proper disposal of materials
* Contribution to nonprofit making organizations
Towards employees
* To ample internal communication
* Employee empowerment allowed
* Employee training about social issues
* No reprisals against employees going against IPR of the organization.
Towards channel members
* Honoring both verbal and written commitments
* Accepting reasonable requests from channel members
* Co-marketing efforts to be promoted
Towards owners
* Honest reporting and financial disclosure
* Publicity about company activities
* Detailed explanation of social issues
* Earning a reasonable profit
CORPORATE SOCIAL RESPONSIBILITY
Maven Tech is also involved in CSR in a way that Maven Tech is a environment friendly place as we are selling safe products which are not harming the society. We will provide all the user needed quality products which are latest and not available in market.
FINANCIAL PLAN
Maven Tech being a startup business needs a high capital investment to recover its expenses like advertisements, salaries along with the cost of production, for the next three to five years. Thus Maven Tech is investing 10,000,000 PKR as its initial capital investment.
Sources of funds:
Maven Tech has four active partners, who are fulfilling the whole capital requirements for Maven Tech to meet its startup cost, which is described below:
Overview of financial projections
Maven Tech is a new business because of which it does not have any past financial data. Thus Maven Tech has used the analysis and results of its survey in concept and usability testing, along with the past financial data of its direct competitor, to estimate the projected sales, income statements, balance sheets and cash flow statements for next three years.
Exit Strategy
Maven Tech after analyzing every risk and exit ways of the business have devised an exit strategy in the case if the business plan does not work or either goes to investors. We have also made certain clauses to recover the cost which would have been incurred on the project. The exit strategies of Maven Tech are as follow:
* Legal documents of partnership will be signed by the partners that partnership will not be resolve until 5 years.
* After five years if any partner wants to exit then he has to inform to the organization at least 1 year before.
* If any partner exits from the business, he or she will get his or her share after 3 years.
* In case of losses every partner will be just liable for their share in organization.
* In case of winding up the organization amount received from sale of asset will be divided among partners and investors according to their shares.
Contents
Quantity
Amount
Building Rent
x100000
00000
Products(For sale)
x1500000
1500000
Computers
0x20000
200000
Generator
x800000
800000
Air Conditioners
4x30000
20000
Other rents
x240000
240000
Security Cameras System
2x10000
20000
Water dispensers
2x5000
10000
Wireless Telecom
3x5000
15000
Furniture
****
500000
Automobiles
****
2140000
Salaries Expense
****
660000
Other investment
****
500000
Promotion
****
500000
Utility Bills
****
75000
Contingency Plan
****
2520000
Insurance
****
00000
Total
0000000
CRITICAL RISK FACTORS
Risk Management:
The objective of risk management is to reduce different risks related to a reselected domain to the level accepted by society. It may refer to numerous types of threats caused by environment, technology, humans, organizations and politics. On the other hand it involves all means available for humans, or in particular, for a risk management entity (person, staff, and organization).
Critical Risks Analysis
For startup business there are many risks involved that are caused by different factors. The risks which are analyzed by Maven Tech are as follow:
* Management Risks
* Marketing Risks
* Operational Risks
* Financial Risks
* Intellectual Property Infringement
Management Risk:
In this risk we realize that there may be any dispute in the management team due to any unforeseen reasons which may result to terminate any of the members.
Remedy:
In this case when any of the management team members leaves the company he is not entitled to use the name of the company. He cannot start the same business with any other name.
Marketing Risk:
In case of marketing we realize that here may be any fault in our marketing plan due to which business can suffer.
Remedy:
For the backup of this risk we have prepared our proposal for different authorities and we also have different marketing plans, as if in any case plan A does not work the plan B will be executed.
Operational Risk:
There may be a risk which can disturb the operations of the business such as production. There may be strikes by the workers.
Remedy:
For minimizing this risk we don't encourage the trade unions in our business and we provide bonuses to our laborers on semiannual basis, provide them with gifts on different occasions, we provide them excellence awards.
Financial Risk:
We realize that in case of termination of any member there is a risk of finance that he or she may take his/her equity away which cause the business to suffer.
Remedy:
To avoid this risk we have made certain clauses in our agreements that if any member d\decides to leave the company he/she will not take his/her equity out of the business. The time period to pay back the equity will be determined on the amount of equity shared by that member.
Intellectual Property Infringement:
In business there is a high risk of infringement of the company's intellectual property. Any one of your competitor may copy your business which causes your business to suffer.
Remedy:
As a remedial step of avoiding this risk we have patented of business for next 15 years i.e. for next 15 years no one can start this business is he/she does so will be held liable for legal prosecutions.
MAVEN TECHNOLOGIES
www.maventech.co.pk Page 1
