PRODUCTION & MARKETING PLAN

FOR LEATHER SHOES

GROUP MEMBERS
NAME

ROLL NO

Mohammed Ali Patel

Mohammed Zaid
Saleem Nomani
Sharoz Khan
Wasim Shaikh
Zeeshan K Shaikh

121

DIRECT COMPETITORS

Bata

Hush Puppies

Woods

Clarks

Redtape

Lee Cooper

Aldo

Regal

Metro

Lords

INDIRECT COMPETITORS

The Rexine sheet makers are also main competitors in the national market and
international market.

MARKET SEGMENTATION
Market is divided into two segments

National

Individual/Single
Customers

International

Business
Customers

Individual/Single
Customers

Business
Customers

DEMAND
Demand is
divided into
two parts

Seasonal
Demand

365 days
Demand

PRODUCTS

Men's Leather shoes

Women's Leather shoes

SERVICE

Company will give online sale services for its customers to access the Indian
market. Customers can order through company website for customize their
products.

We are also giving shipping facility or service for the delivery of goods on
behalf of customers.

SIZE OF BUSINESS

Marketing Department

Finance Department

IT Department

Operations Department

HR Department

EMPLOYEES
Job/ Position

No. of employees

Cutting Master

Packing master

Fusion master

Skilled Stitchers

Partners

Sweeper

Total

15

OFFICE EQUIPMENT
EQUIPMENTS

AMOUNT / NO.

Office Tables

Computer

Printer

Internet connection

Landline number & phone

Office Stationery
Office chairs

According to need
5

PRODUCTION PLAN
Manufacturing Process

Matching

Cutting

Assembly

One Stitcher one Garment

Stitching

Finishing

Chain Process

PHYSICAL PLANT

Raw Materials Store

Cutting and matching room

Stitching room

Fusing or finishing room

Packing room

Company office

Wash room

UTILITIES REQUIREMENTS

Electricity

Telephone

Water

MACHINERY AND PLANT

Name of machine

No./amount

Over lock Machine

Stitching Machine

Iron regular

Cutters

Scissors

Factory Tables

Scale

Inch tape

Show case

Water cooler

Generator (1.5 KVA)

Fusing Machine (optional)

Total

47

FLOW OF ORDER FOR GOODS

Suppliers of
leather &
material

Customer
order/
Receiving of
goods

Receiving &
Storing of
leather and
material

Website /
phone Head
office of
company

Shipment of
goods via
transport

Matching &
cutting of
Leather
Shoes

Stitching of
products and
finishing
/packing

MARKETING PLAN

Pricing

Value based price

Cost based price

Distribution

Promotion

Product forecasts

FINANCIAL PLAN: PROJECT COST

PROJECTS COSTS (RS.)

TOTAL COST

Machinery (used)

Rs. 40,16000

Furniture & Fixtures

Rs. 91000

Miscellaneous (salaries)

Rs. 63000

Raw material inventory

Rs. 420000

building rent

Rs 30000

Total reserve for next month

Rs. 500000

Total Investment in the Project (Rs.)

Rs. 1200000

MACHINERY ASSUMPTIONS
Number of Machines Installed

Maximum Capacity Utilization (year 1)

Total Production of the unit per month

Total Production of the unit per year

6
100%

350 units

4200 units

OPERATING ASSUMPTIONS
Annual Production capacity

4200 units

Hours operational per day

8hrs

Days operational per month

26

Days operational per year

312 days

CASH FLOW ASSUMPTIONS

Accounts Receivable cycle (in days)

30

Raw material inventory (in day)

30

REVENUE ASSUMPTIONS
Production capacity of the unit

4200 units

Sale price growth rate

Maximum capacity utilization

10%

100%

EXPENSE ASSUMPTIONS
Machine maintenance (per year)

Rs 1000

Pre-paid building Rent (months)

06

Rent growth rate

10 %

Raw material price growth rate

5%