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PAPER BAGS
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Project on entrepreneurship
SUBMITTED BY PG sem-2RISHABH CHHEDA 06
SANYOGEETA CHORE 07
PRATIK JAMSANDEKAR 14
HEENA KOTHARI 16
SHRUTI PAI 21
RACHANA PATEL 24
RIDDHI UDANI 40
MOHD ALI SHAH 45
SUBMITTED TOPROF.K S IYENGAR
YEAR 2011-2013
GURU NANAK INSTITUTE OFMANAGEMENT STUDIES
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NAME OF THE OWNERS
1.RISHABH CHHEDA.
2.SANYOGEETA CHORE.
3.PRATIK JAMSANDEKAR.
4.HEENA KOTHARI.
5.SHRUTI PAI.
6.RACHANA PATEL.
7.RIDDHI UDANI.
8.MOHD ALI SHAH.
NAME OF THE BUSINESS VENTURE
ECO FASHION BAGS
BUSINESS LOCATION:- MATUNGA,SION,DADAR,WADALA.
WHAT PRODUCT TO SELL:- PAPER BAGS.
PURPOSE OF THE PLAN:-
ECO FRIENDLY AND RECYCLABLE. INCREASE AWARENESS OF HAZARD OF PLASTIC. CURRENT TREND.
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STATEMENT OF PURPOSE
Amount of loan required: - No Loan required
Amount of money you are putting in: - we are putting
The loan periodfor how many years you require the loan amount for: - Nil
The impact of the loan and the purpose it will have on your business: - Nil
The collateral that will be used to support the loan: - Nil
OVERVIEW OF INDUSTRY(WHY PAPER BAGS)
Retailers currently have a finite branding opportunity to position themselves as forward thinking,
environmentally aware businesses by switching away from plastic carrier bags.
With rapidly increasing consumer awareness of the problems of waste, landfill and the
environmental impact of plastic bags, these issues are high on the media agenda and consumers
minds.
There is an increasing likelihood that the government will introduce legislation to curb plastic
bag use. Now is the time to switch your business to eco-friendly alternatives voluntarily, to enjoythe significant marketing benefit that this currently confers.
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COMPANY DESCRIPTION
ECO FASHION BAGS is a new company that will deal in the business of PAPER BAGS.It will
be a partnership, owned and operated by Rishabh Chheda,Sanyogeeta Chore,Pratik
Jamsandekar,Heena Kothari,Shruti Pai,Rachana Patel,Riddhi Udani,Mohd Ali Shah.
ECO FASHION BAGS offers an extensive range of PAPER BAGS.We purchase all of our raw
materials from Crawford market(old Mumbai). We offer newspaper bags, bags for occasions like
weddings,birthdays and for kitty parties.
ECO FASHION BAGS will target retailers,medical shops,vendors,gift shops and even for
weddings and birthdays. After achieving break even and achieving a reasonable profit we plan to
expand and make tie ups with self help groups thereby providing employment.
The prospects ofmaking money from selling handbags made out of used newspapers may not
seem promising at first, but this can be a very profitable business if handled in the right
way. There are two factors that work in favor of this business:
1. Increasing environmental awareness makes it a very viable and marketable product. Aspaper is eco-friendly, it is going to take over polythene as the leading material for
production of user-friendly and durable bags.2. Newsprint is available in abundance. In fact, one of the largest amount of recyclable
waste available is in the form of newsprint; therefore, there is no shortage of the raw
material. Furthermore, the cost of production of these bags is very less which also meansthat it can be sold at affordable prices (thus making it a very marketable product).
3. Inventory risks are low, especially if there is abundant space available to keep them in aclosed environment, away from rain, moisture and humidity.
4. Many cities have started banning polythene bags; this provides an opportunity for paperbags to increase their market share
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The PRIMARY OBJECTIVES ofECO FASHION BAGS over the next year are to:
Develop a strong client base.
Keeping overhead costs to a minimum.
Expand business operations.
MARKET ANALYSIS
Market research was done at different levels , taking into consideration different types of sample.
The different samples considered were:-
Medical shops Vendors Grocery shops Occasion bags ( Birthday, Weddings, Kitty parties)
The findings of this research are shown in the form of Graphical Representation as below.
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SEGMENTATION
GEOGRAPHIC SEGMENTATION
We have targeted Matunga, Sion, Wadala and Dadar because retail outlets are available on a
large scale in these prime areas. Availability of medical shops near Sion hospital area makes a
good location for business.
PSYCOGRAPHIC SEGMENTATION
Our Target customers are Medical shops, Retail outlets , Vendors. Vendors can give us a good
business as women daily go to market area to buy vegetables. As, medical shops are near
hospital area huge number of consumers enter medical shops. Usage of paper bags will be more
convenient for environment, and specially near hospital areas. We have targeted mainly those
places where consumers enter shops for their basic needs.
DEMOGRAPHIC SEGMENTATION
Our product mainly targets shops where consumers enter the most for their basic needs. There is
no age specification for the product. It is for all income level people.
sales of plastic
bag
58%
sales of news
paper bags
42%
Sales
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TARGETING
Medical shops Vendors Grocery shops Occasion bags ( Birthday, Weddings, Kitty parties)
POSITIONING
Positioning of our product is we make paper bags out of recycled papers. It is eco-friendly, it
does not harm the environment as the paper can be recycled. It is prepared from waste and we
give out our best.
SWOT
Strength:
Low cost with high quality. Dedicated & punctual staff. On time delivery.
Favorable access to distribution networks.
Weaknesses:
Entry. Inexperience. High cost structure. Limited area of operation. Not able to enjoy economy of scale.
Opportunities:
Scope of export. Large market. Changing of lifestyle/fashion.
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Environmental conscious customer.Threats:
Large number of competitors. Threats of substitute product. Highly sensitive & volatile market. New regulation.
Q) How would you attract customers?
A) The best way to attract customers is to provide them with various offers. Like purchase 100bags and get half a dozen bags free. Or, buy 200 bags and get a choice of your name printed on
the bag.
Q) Why should your customer agree to pay you the price that you
are demanding?
A) As, paper bags are considered to be the most eco friendly, we are making it a point that they
are available and affordable for everyone. We have set our pricing strategies in such a way thateven a local vendor can afford the paper bags and it is for all income level. And along with
affordability we are even offering excellent quality and durability at such a low price.
Q) Why did u arrive at this price?
A)Paper bags are quite economical and in order to adapt the habit of using the paper bagsinstead of plastic bags we have come up with an economical price which falls in the range of Rs
2.50 to 8 per bag so that from the vendors to the big retailers can afford paper bags for their
customers.
Q) What special advertisement you will be offering to your
customers?
Word of mouth Door to door selling
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Placing stalls at exhibitions and outside collegesLOCATION
Convenience: - As we have college in Matunga we prefer nearby location for selling theof cards. Initially, to ensure a good hold over our business, we have selected the business
location to be at areas nearby to Matunga.
Cost: - Rent of the stall at Exhibitions is to be paid. Moreover, costs incurred forraw material will be taken into consideration.
Safety: - No damages in the bags, as prepared with thick material. Transportation :- Transportation cost will be a bit high.
HOW TO REACH THE CUSTOMERS
With increasing awareness and go-green campaigns undertaken by many corporates, recyclinghas become a viable & popular option.Once the paper bags are being produced on a regular
basis, we can approach small shops, the local departmental store, the hardware items sellers for
buying our product. We can also sell the handbags to customers through our local vendors(departmental stores, stationery shops, gift shops, etc.). If the business is doing really well, we
can sell the bags from a commercial place (shop), sell it from home or deliver on order through
the internet. We will use the eco-friendly campaign to drive sales and create a brand name forour venture. Ultimately with the right campaign and branding campaign, we can make many
times the profit, starting with very less investment.
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DESCRIPTION OF THE PRODUCT
One thing to note here is that the paper bags are not recycled in the classical sense, that is, they
are not grounded, made into a paste and then fed to machines which create paper bags or reams
of paper out of them. Rather they are just folded in to specific patterns and sizes and then the
edges are pasted to create simple paper bags.We are providing a varying gamut of paper bagswhich is long lasting and highly durable.These bags are light in weight and spacious. The bags
are designed in such a manner, so as to carry a reasonable amount of weight. Our products are
available at competitive price in the market.
1.NEWSPAPER BAGS
Recycled English language newspaper. White sheet lining for extra strength.
2.HANDMADE COTTON PAPER BAGS
Luxury, thick and textured paper.3.RECYCLED MILL-MADE PAPER BAGS
Reinforced eyelets. Cardboard base. Choice of handle types.
DESCRIPTION OF THE VENTURE
COMPANY VISION-
To provide impeccable quality products and to make our company the most valuable andprofitable company.
To provide best out of waste.
http://www.thealternativebagcompany.com/wp-content/uploads/2010/06/DSC_24891.jpghttp://www.thealternativebagcompany.com/wp-content/uploads/2010/06/Logo-Printed-Recycled-Paper-Bag.jpghttp://www.google.co.in/imgres?imgurl=http://blog.craftzine.com/moogsmumrecycledgiftbag.jpg&imgrefurl=http://blog.craftzine.com/archive/2008/12/how_to_recycled_newspaper_gift.html&usg=__k3YwzW9eLGqR0uLR37uGkuiyp1o=&h=350&w=296&sz=44&hl=en&start=8&zoom=1&tbnid=skCcLgqHoeWEDM:&tbnh=120&tbnw=101&ei=EBItT4mzFoTxrQfL1oHDDA&prev=/search?q=newspaper+bags&hl=en&gbv=2&tbm=isch&itbs=1http://www.thealternativebagcompany.com/wp-content/uploads/2010/06/DSC_24891.jpghttp://www.thealternativebagcompany.com/wp-content/uploads/2010/06/Logo-Printed-Recycled-Paper-Bag.jpghttp://www.google.co.in/imgres?imgurl=http://blog.craftzine.com/moogsmumrecycledgiftbag.jpg&imgrefurl=http://blog.craftzine.com/archive/2008/12/how_to_recycled_newspaper_gift.html&usg=__k3YwzW9eLGqR0uLR37uGkuiyp1o=&h=350&w=296&sz=44&hl=en&start=8&zoom=1&tbnid=skCcLgqHoeWEDM:&tbnh=120&tbnw=101&ei=EBItT4mzFoTxrQfL1oHDDA&prev=/search?q=newspaper+bags&hl=en&gbv=2&tbm=isch&itbs=1http://www.thealternativebagcompany.com/wp-content/uploads/2010/06/DSC_24891.jpghttp://www.thealternativebagcompany.com/wp-content/uploads/2010/06/Logo-Printed-Recycled-Paper-Bag.jpghttp://www.google.co.in/imgres?imgurl=http://blog.craftzine.com/moogsmumrecycledgiftbag.jpg&imgrefurl=http://blog.craftzine.com/archive/2008/12/how_to_recycled_newspaper_gift.html&usg=__k3YwzW9eLGqR0uLR37uGkuiyp1o=&h=350&w=296&sz=44&hl=en&start=8&zoom=1&tbnid=skCcLgqHoeWEDM:&tbnh=120&tbnw=101&ei=EBItT4mzFoTxrQfL1oHDDA&prev=/search?q=newspaper+bags&hl=en&gbv=2&tbm=isch&itbs=1 -
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MISSION STATEMENT-
3RS -Reduce,Reuse,Recycle and to contribute to the society in a ecofriendly manner.PRICING STRATEGY
We have adopted penetration pricing strategy in which the price of our product is verylow and through this we will try to capture more market and customers.
Our product is priced as follows-1.Big newspaper bags Rs 3.
2.Small newspaper bags Rs 2.5.
3.Fancy paper bags Rs 8.
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FINANCIAL DATA
Estimated Cost sheet of Eco Fashion Bags as on 31/3/2013
Particulars Small size Big size Fancy Bags Total
Direct materials
Paper
Glue
1600
800
800
400
1600
800
4000
2000
Direct Expense
(Including
Packaging)
800 400 800 2000
WORKS COSTAdministrative
Overheads
Electricity
3200
400
1600
200
3200
400
8000
1000
COST OF
PRODUCTION
Selling
Overheads
Travelling
expense of
salesperson
3600
400
1800
200
3600
400 1000
TOTAL COST
PROFIT
4000
800
2000
400
4000
800
10000
2000
TOTAL
SALES
4800 2400 4800 12000
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Estimated Cost Sheet of Eco Fashion Bags as on 31/3/2014
Particulars Small size Big size Fancy Bags Total
Direct materials
PaperGlue 22951147 1410706 22951147 60003000
Direct Expense
(Including
Packaging)
1147 706 1147 3000
WORKS COST
Administrative
Overheads
Electricity
4589
574
2822
352
4589
574
12000
1500
COST OF
PRODUCTIONSelling
Overheads
Travelling
expense of
salesperson
5163
765
3174
470
5163
765
13500
2000
TOTAL COST
PROFIT
5928
1261
3644
778
5928
1261
15500
3300
TOTAL
SALES
7189 4422 7189 18800
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Estimated Cost Sheet of Eco Fashion Bags as on 31/03/2015
Particulars Small size Big size Fancy Bags Total
Direct materials
PaperGlue 33751313 2250874 33751313 90003500
Direct Expense
(Including
Packaging)
1312 876 1312 3500
WORKS COST
Administrative
Overheads
Electricity
6000
750
4000
500
6000
750
16000
2000
COST OF
PRODUCTIONSelling
Overheads
Travelling
expense of
salesperson
6750
750
4500
500
6750
750
18000
2000
TOTAL COST
PROFIT
7500
1781
5000
1188
7500
1781
20000
4750
TOTAL
SALES
9281 6188 9281 24750
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Estimated Balance Sheet for 3 years
Particulars 31/03/2013 31/03/2014 31/03/2014
LiabilitiesCapital
P/L
Creditors
10000
2000
4000
10000
3300
6000
10000
4750
8000
Total Liabilities 16000 19300 22750
Assets
Fixed Assets
(-) 10% Depreciation
8000
--
8000
(800)
7200
(800)
Total Fixed Assets
DebtorsCash
8000
60002000
7200
94002700
6400
123753975
Total Assets 16000 19300 22750
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MANAGEMENT
BUSINESS BACKGROUND
We have chosen this business as we want to spread awareness regarding the use of eco friendly products.
Our goal is to reduce the use of plastic bags which causes environmental hazards andpromote the use of paper bags
MANAGEMENT SKILLS
We have with us the best people for taking care of the finances of the business. Thus giving us a clear view of how much is the exact loss or profit gained. This in return will help us to know our companys progress. We have effective marketing skills which will help us to advertise and sell our product. We have good communication skills which will help us to know our customers better. Our selling skills as well as negotiating skills will benefit us for marketing our product.
QUALITIES OF OUR TEAM
Team spirit, goal oriented, optimistic, clear vision, communication skills, convincing power, self
motivated.
MANAGERIAL TEAM
NAME: RISHABH CHHEDA
QUALIFICATION: B.COM
DUTIES ASSIGNED: FINANCE AND SELLING AND DISTRIBUTION
NAME: SANYOGEETA CHORE
QUALIFICATION: B.COM
DUTIES ASSIGNED: PREPARATION,SELLING AND DISTRIBUTION
NAME: PRATIK JAMSANDEKAR
QUALIFICATION: B.M.S
DUTIES ASSIGNED: PREPARATION AND SELLING
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NAME: HEENA KOTHARI
QUALIFICATION: BAF
DUTIES ASSIGNED: FINANCE AND PREPARATION
NAME: SHRUTI PAI
QUALIFICATION: B.COM
DUTIES ASSIGNED: PREPARATION,SELLING AND MAINTAINENCE
NAME: RACHNA PATEL
QUALIFICATION: BBI
DUTIES ASSIGNED: PREPARATION,SELLING AND MAINTAINENCE
NAME: RIDDHI UDANI
QUALIFICATION: B.COM
DUTIES ASSIGNED: PREPARATION AND SELLING AND DISTRIBUTION
NAME: MOHD. ALI SHAH
QUALIFICATION: B.SC (PHYSICS)
DUTIES ASSIGNED: SELLING AND DISTRIBUTION
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