BUSINESS PLAN

A SHORT RANGE MULTIMEDIA

MUHAMMAD NAEEM AKRAM MUHAMMAD SAAD ASAD SYED MOHSIN ALI BBA 6 B Submitted To: Mr. Nadir Ali Colachi

EXECUTIVE SUMMARY
MARVELL MEDIA is basically and electronic based company We are planning to start the business by opening the shop in UNI-PLAZA at I.IChundrigar Road Karachi. Our main product is Short Range Multimedia", which is the substitute to computer monitor. Marvell Media will import its finished product (Short Range Multimedia) from China and we will also hire a professional for legal requirements and paper works related to imports. There is no such legal binding on import of finished good from China. Our main customers will be Multinational Companies, Office users, Educational institutes and Home users. The competitive edge of our product is that, it is introduced first time in Pakistan. Our main competitors will be companies that are selling Personal computers. As Marvell Media will import finished product so wee will only emphasize on sales and marketing of our product. Marvell media's management consists of 5 qualified and experienced personnel including 3 of friends who are founders and owners also and 1 sales person will be hired, and another person will hired by the owners for purchase who will look after and check our purchases on port and both the sales person and purchase officer's salary will be decided by the management team and will be according to current market rate, and 1 sweeper. We will be planning to increase our employees from 5 to 7 in next 3 years. Our organization structure consists of 3 departments Finance: MUHAMMAD NAEEM AKRAM Marketing and sales: MUHAMMAD SAAD ASAD Purchase: SYED MOHSIN ALI

By creating a new niche in the computer industry MARVELL MEDIA will increase sales by 15% each year Our initial investment will be Rs 3,300,000 and it will be equally shared by each of the three partners i.e. (1,100,000) per partner.

Acknowledgment
We would like to thank ALLAH ALMIGHTY, the most beneficent and merciful for enabling us to fulfill are duties as a students. May ALLAH always kept HIS blessing on us. We also like to thank our parents and teachers for guiding us.

Table of contents
General company description Product/service plan Marketing plan Management plan Operating plan Financial plan Appendix ------------------01 -------------------------------02

-----------------------------------------03 -------------------------------------05 -----------------------------------------08 ------------------------------------------10 --------------------------------------------15

GENERAL COMPANY DESCRIPTION

NAME & LOCATION: The name of the company is MARVELL MEDIA, and we are planning to start the business by opening the shop in UNI-PLAZA at I.I Chundrigar Road Karachi. The Business will start operating from January 2008.

OBJECTIVES:

To achieve sales of Rs 3,000,000 at the of 2008. To start operating business in Lahore by the end of 2010.

MISSION: To became the necessary part of personal computer.

PRODUCT: Our main product is short Range Multimedia, which is the substitute to computer monitor. Our main customers will be Multinational Companies, Banks, Office users, Educational institutes and Home users.

COMPETITVE EDGE:

The competitive edge of our product is that, it is introduced first time in Pakistan. Our Indirect competitors will be companies that are selling Personal computers. As Marvell Media will import finished product so wee will only emphasize on sales and marketing of our product.

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PRODUCT/SERVICE PLAN:

PRODUCT DESCRIPTION:

As Karachi is the hub of business so Marvell Media is launching an innovative product with unique feature i.e. (Short Range Multimedia). We initially have only 1 product which is the perfect replacement of monitors because it will minimize the harmful effects of rays that radiates from monitors. The feature of Short Range Multimedia enables users to use it according to their accessibility.

SERVICES:

Free installation service will be provided to all our customers. A manual is also provided to users to make our product easy to use. We also provide technical advice at the time of purchase related to durability, quality, functioning and others technical things. We provide one year replacement warranty. Marvell Media will provide equally best display as being provided by others top selling computer companies.

SOURCING:

Marvell Media will import its finished product (Short Range Multimedia) from China and we will also hire a professional for legal requirements and paper works related to imports. There is no such legal binding on import of finished good from China.

PRICE: The price of Marvells Multimedia will be Rs 16000 per unit.

Challenge:

No attention towards transfer of technology.

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MARKETING PLAN

MARKET ANALYSIS

The computer market is rapidly expending due to increase in the use of personal computers in daily life and it has become the basic necessity of very business. The competition in the market is very high and it is very difficult for new entrants to enter into computer industry and capture the market share until and unless they have strong competition edge and unique features in their products.

MARKET SEGMENTATION

As Marvell media is introducing the computer based product the short-range multi-media so we will target those area in which the computer are extensively used.

MULTI-NATIONAL ORGANIZATONS: Multi-National organizations which have large IT infra-structure so these organizations will be our potential target market.

OFFICE USERS: There are many offices in different locations like university road, Share-e-faisal and obviously I.I chundrigar road and also we are starting our shop from UNI PLAZA which is also at I.I chundrigar road. EDUCATIONAL INSITITUTES:

As most of the educational institutes in Karachi are using computers so these institute are also a very attractive segment for us to promote our product. HOME USERS:

Computer has become the basic necessity of every house so most of the peoples have computer at there own homes either for work or for entertainment purposes and also Karachi has a very high (%) of internet users.

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TARGET MARKET SEGMENT STRATEGY

As we are introducing a very new product so in order to achieve our objectives (sales of 190 units in 2008) we must have to make lots of efforts to create awareness of our product through effective marketing.

Advertisements through print and electronic media Product presentation will be given to multi-national organizations and big governmental Organizations. We will arrange (2-3 days) display centers in different shopping malls and other market Places for the promotion end demonstration of our product.

COMPETITIVE ANALYSIS

Karachi is the biggest computer and electronic market of Pakistan so we have healthy competition in computer industry.

Our main competitors are all those computer shops who are selling computers whether at retail price or at discount also electronic shops who are selling long range multi-media.

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MANAGEMENT PLAN
MANAGEMENT SUMMARY.

Marvell media's management consists of 5 qualified and experienced personnel/employees including 3 of friends who are founders and owners also and 1 sales person will be hired, and another person will hired by the owners for purchase who will look after and check our purchases on port and both the sales person and purchase officer's salary will be decided by the management team and will be according to current market rate. We will be planning to increase our employees from 5 to 7 in 3 to 4 years.

ORGANIZATION STRUCTURE.

Our organization structure consists of 3 departments

Finance Marketing and sales Purchase

MANAGEMENT TEAM All the 3 friends are at the same time founders and owner. Partners will equally share profits and loss.

SYED MOHSIN ALI: Founder, graduated from Bahria University (MBA Finance). He has a 5 years experience of purchase manager.

MUHAMMAD NAEEM AKRAM: Founder, graduated from Bahria University (MBA Finance). He has a 3 years experience of finance manager in bank. And his key features are the technical knowledge and communication skills.

MUHAMMAD SAAD ASAD: Founder, graduated from Bahria University (Mba Marketing). He has a 2 years experience of marketing manager in multi national companies. And his key features are the inter-personal and communication skills.

Our sales person and purchase officer should have 2-3 years experience in their respective fields

05 MANAGEMENT TEAM GAPS.

Each of the 5 employees is responsible for managing his are of expertise but there are gaps exits between management on the following issues.

Lack of knowledge of other departments Minimal experience of managing the whole business by ourselves Sole control over all operations.

PERSONNEL PLAN

In personnel plan we indicates employees in each department according to their education and skills

2008
Purchase officer Sales person Sweeper Rs 8,000/month= Rs 96,000 Rs 5,000/month= Rs 60,000 Rs 2,000/month= Rs 24,000

2009
Rs 8,000/month= Rs 96,000 Rs 5,000/month= Rs 60,000 Rs 2,000/month= Rs 24,000

2010
Rs 9000/month= Rs 108000 Rs 6000/month= Rs 72000 Rs 2500/month= Rs 30000

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FUTURE PLANS
The company has the following future plans in the upcoming years.

We will introduce various other variety of the short range multi-media in terms of design, features and many other new and innovative things We will also give bonuses and salary increments to our employees We will manufacture our products by ourselves as we will going to buy our own place We will also hire employees as needed for the companys development We will promote our brand every where in the world and made this world addicted for our products

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OPERATING PLAN
PRODUCTION FACILITIES:

MARVELL MEDIA will be importing finished good from China, thus there will be no production activity performed by MARVELL MEDIA in Pakistan.

QUALITY CONTROL: MARVELL MEDIAS main emphasis will be on quality. We strongly believe that our main strength is customer satisfaction and the product that MARVELL MEDIA is importing is quality assured. Since the target market of MARVELL MEDIA is very sensitive and most of them are professionals, like multinational organizations, banks and educational institutes. So quality will be strongly under consideration for these segments.

CUSTOMER SERVICE:

Customer service will be main tool for MARVELL MEDIA for gaining trust among the customers. Salesman will provide all the services related to product. He will resolved all the problems or refers to the technical person. There will no communication gap between the customers and the management team because most of the time management team will be there.

INVENTORY CONTROL:

Purchase manager will be responsible for all the issues related to inventory control. Purchase officer will be responsible for the collection of import goods from the seaport and for the delivery to the store. Purchase manager will inspect the delivered items and check all the documentation related to import of inventory.

LOCATION:

MARELL MEDIA will be operating from UNI-PLAZA, I.I. Chundrigar Road Karachi. The location has been selected by keeping in view many factors that; there should be easy access for the customers. Transportation cost for the delivery of imports goods from port to the store should be

least. Business environment is healthy in that area. Customers related to most the electronic items and computers prefer to go to UNI-PLAZA. 08 RENT:

The rent of the shop will be Rs 30,000 per month for the year 2008. It will be increased approximately by Rs 2000 per year for the next two years. , i.e., (Rs 32,000 per month for year 2009 and Rs 34,000 per month for 2010).

TIMINGS:

The business timings will from 10:00 AM to 10:00 PM. MARVELL MEDIA will operate 6 days a week and Friday will be the half day and timings for Friday will be (3:00 PM to 10: PM). Sunday will be observed as closed day.

SUPPLIERS:

A single supplier will supply the inventory to MARVELL MEDIA from China. The type of inventory will be of finished product, so there is no further production process is required. The mode of payment to the supplier will be cash as well as credit. (3- Month credit policy will be adopted).

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FINANCIAL PLAN
The financial statements of MARVELL MEDIA are given below, including the pro-forma income statement, balance sheet and statement of cash flows for three years.

MARVELL MEDIA
START UP COST DIRECT COST: Inventory Equipment Furniture Fixtures Office supplies EXPENSES: Shop rent Shipments Transportation Payroll: Purchase Officer Salesman Sweeper Total payroll Advertising & Promotion Other expenses Utilities: Telephone Electricity Internet Total Utilities TOTAL STARTUP COST
Rs 30,000 per month 7.5% of the cost of inventory 200 units @ Rs 10,000 per unit

2,000,000 50,000 100,000 100,000 15,000

360,000 150,000 5,000

(Rs 8,000 per month) = Rs 96,000 (Rs 5,000 per month) = Rs 60,000 (Rs 2,000 per month) = Rs 24,000

180,000 130,000 12,000

(Rs 5,000 per month) = Rs 60,000 (Rs 10,000 per month) = Rs 120,000 (Rs 15000 per month) = Rs 18,000

198,000 3,300,000

MARVELL MEDIA
PRO-FORMA INCOME STATEMENT 2008 Sales Cost of good sold: Opening inventory Cost of good purchase Ending inventory Cost of good sold Gross profit Operating Expenses
200 units @ Rs 10,000 per unit 190 units @ Rs 16,000 per units

2009 3,488,000

2010 4,016,000

3,040,000

2,000,000 (100,000) 1,900,000 1,140,000

100,000 2,300,000 (220,000) 2,180,000 1,308,000

220,000 2,650,000 (360,000) 2,510,000 1,506,000

Rent Shipment & Transportation Marketing & other expenses Payroll Office supplies Depreciation: Equipment Furniture Fixtures Total Accumulated depreciation Utilities: Telephone Electricity Internet Total Utility Expense Total Operating Expense Income before tax Tax (15%)

Rs 30,000 per month 7.5% of the cost of inventory + Rs 5,000

360,000 155,000 100,000 180,000 10,000

384,000 177,500 115,000 180,000 11,500

408,000 203,375 132,250 210,000 13,225

50,000 x 0.2 = 10,000 100,000 x 0.1 = 10,000 100,000 x 0.1 = 10,000

30,000
5,000 x 12 = 60,000 10,000 x 12 = 120,000 1,500 x 12 = 18,000

30,000

30,000

198,000 1,033,000 107,000 16,050

198,000 1,096,000 212,000 31,800

198,000 1,194,850 311,150 46,673

Net Income

90,950

180,200

264,477

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MARVELL MEDIA
PRO FORMA CASH FLOW STATEMENT 2008 2009 2010

Cash (beginning balance) Cash received from sales

3,300,000 3,040,000

3,070,950 3,488,000

3,161,150 4,016,000

Total cash available CASH DISBERSMENT

6,340,000

6,558,950

7,177,150

Purchase of inventory Equipment, Furniture & fixtures Office supplies Rent shipment & Transportation Salaries Utilities Marketing and other expenses tax

2,000,000 250,000 10,000 360,000 155,000 180,000 198,000 100,000 16,050

2,300,000 11,500 384,000 177,500 180,000 198,000 115,000 31,800

2,650,000 13,225 408,000 203,375 210,000 198,000 132,250 46,673

Total cash disbursement

3,269,050

3,397,800

3,861,523

Ending Cash Balance

3,070,950

3,161,150

3,315,627

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MARVELL MEDIA
PRO FORMA BALANCE SHEET 2008 ASSETS Current assets: Cash Finished goods 3,070,950 100,000 3,161,150 220,000 3,315,627 350,000 2009 2010

Total current assets Long term assets: Furniture Equipment Fixture Accumulated dep.

3,170,950

3,381,150

3,665,627

100,000 50,000 100,000 (30,000)

100,000 50,000 100,000 (60,000)

100,000 50,000 100,000 (90,000)

Total long term assets

220,000

190,000

160,000

TOTAL ASSETS LIABILITIES & EQUITY

3,390,950

3,571,150

3,825,627

Accrued taxes Account payable

Equity Retained Earnings TOTAL LIABILITIES EQUITY & OWNER

3,300,000 90,950

3,390,950 180,200

3,571,150 264,477

3,390,950

3,571,150

3,835,627

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APPENDIX

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SALES GROWTH RATE 15% PER YEAR TAX RATE 15% INCREASE IN SALARY (YEAR 2010) PURCHASE MANGER------------ RS 1000 SALES PERSON--------------------RS 1000 SWEEPER----------------------------RS 500

DEPRECIATION We will use the straight line method for calculating depreciation for equipment, furniture and fixtures
Equipment -------------------------------Furniture---------------------------------Fixtures-----------------------------------50,000 x 0.2 = 10,000 ---------------(estimated life 5 yrs) 100,000 x 0.1 = 10,000---------------(estimated life 10 yrs) 100,000 x 0.1 = 10,000---------------(estimated life 10 yrs)

References for tax rate www.pakboi.gov.pk www.pseb.gov.pk

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