Group Introduction

MembersArshad HayatZohaib AhmedBilal LeghariAli RazaLaila Noor

PROJECT NAME

YOUTH FUN LAND

NATURE OF BUSINESS:

This is the partnership business. We will provide services to the people. There is no other person or company to provide such refreshment facilities to the people of Multan and Southern Punjab.

VISION:“To establish a market that would promote technical activities in the public and lead that market with our long term strategies”

MISSION:

“Our mission is to make accessible various games to the

customers of various ages groups, in a sociable environment,

even in the smaller cities, by using latest technology, so as to

ensure a stable growth of our business, that would ensure that

the company’s philosophy and core competencies are aligned

with our vision and eventually, our firm projecting a positive

image, not only for its own employees, but for our city.

LOGO:

“THE LAND OF ENTERTAINMENT”

SOLOGAN:

OBJECTIVES

LONG TERM OBJECTIVES:•To generate the loyal customer ship.

•To create a positive Image and good will of business

•Encourage the investors to invest in our similar future projects.

•To expand business, by increasing the Product line.

SHORT TERM OBJECTIVES:

•To cover the short term expenses

•To reduce the cost, by critically analyzing the operations of the business

•To provide friendly environment to customers

•To fulfill the need of customers from various classes of the society

COMPETITIVE ADVANTAGE:

We are going to provide a completely friendly environment to

our customers

•We are going to provide different suitable packages for everyone.

•The location is very attractive, so as to facilitate each segment of our target market.

•The projected cash flows support our idea of expansion.

OPPORTUNITY ASSESSMENT:

As we know games are a healthy activity for people

also like to play games in their idle time. So we can

take the benefit of that opportunity by opening a

Gaming Zone in our city. This opportunity can give us

healthy profits and can prove beneficial for us as a

long run business.

RISK AND RETURNS OF OPPORTUNITY:

RISK:

We will have to build a building to open Gaming Zone in Multan. But

•After conducting survey in Multan we found that more than 70% people are willing to have a Gaming Zone here.

•Someone else takes initiative for opening gaming zone before us and take advantage of opportunity is also a risk for us.

•Another risk we are considering is availability of finance.

•In this modern world, the technology is rapidly changing because of that the risk of existing technology becoming outdated is constantly there.

•Risk of new competitors is always there.

RETURNS:

We expect to receive return in following ways:

•We will be able to earn lot of profits because of our monopoly.

•We can earn by organizing events in our gaming zone.

•Gaming Zone is a passion for us. So internal satisfaction is the highest return for us.

PEST ANALYSIS

1: POLITICAL CONDITION:

For the starting of any business, the investor should analysis the political

condition of specific country. If the policies of Govt. are stable then it is

favorable for business. The tax rate is reasonable, provide rebate in

excise duty, security to wealth, no chances of war, no tight rules and

regulation then a business will efficiently operate in the country. But

unfortunately in Pakistan the political condition is not good so we have

threat from the increase rate of tax and insecurity. And also there is no

peace in Pakistan.

The YFL will play its minor role in the improvement of economic

conditions. This new business will provide the employment

opportunities to the people of Multan. In this way the

unemployment rate will reduce in this area. Government will get the

taxes as a result of business not only from our business but also

from the other sectors connected with us. Per captia income of

employees will increase and as a result of these the lifestyle of

city’s people also increases.

2:ECONOMIC CONDITION:

These days guys and girls both love to play games especially online multiplayer

games. Gone are the days of playing arcade games on computer – now it’s the

online networking games’ culture. But to enjoy all these games not everyone has

broadband connection at home. So, teens turn to gaming zones, the breeding

place of future pro-gamers. Gaming zone is like a paradise for teens. Dimly light

room filled with neon lights is what teens love. Trance background music and

soothing environment, a dream place to enjoy free time. People want places

where they can enjoy and release their mind from tensions of daily work load.

Social condition is favorable for our business. Our business will also take the

Ethical Rules into the considerations.

3:SOCIAL CONDITION:

4:TECHNOLOGICAL CONDITIONS:

Due to the introducing of new technology in games, our business has consistent

threat from changes in technology. It also increases the cost of our business. For

new technology understanding we need skilled and trained persons who are the

expert in IT field. Games companies are introducing new games with good

stories, action, graphics, 3D effects and lot more every day. IN Pakistan

technology is introduced step by step. The technological conditions are becoming

favorable for the business of gaming zone. So we should hold up to date

technology for providing good and quality services. Because the people are well

aware from new technology. The technology which we have for our YFL is

computers, LCD’s, video games etc.

COMPETITOR ANALYSIS:

DIRECT COMPETITORS:

As we are starting YFL in Multan and there is no such type of

Gaming Zone for youth in this area. So we don’t think we have

any direct competitor in that location where our business exists.

But Outside the city there are few shops of games containing:•Snooker

•Hand ball

•Tennis Table

As our target market is youth. So we can treat then as our direct competitors because these are attracting the attention of youth.

INDIRECT COMPETITORS:

YFL also have some indirect competitor which are given below:

•Parks

•Joy land

Refreshment Point

Arshad Hayat

MARKET SEGMENTATION:

We can decide to select the IT industry for the staring of our new venture .We start the

new YFL in Multan. We will divide our market into small groups on the base of our

targeted customer’s characteristics.

GEOGRAPHIC:

Our targeted customers are of different cities of Pakistan, These cities are

Muzaffargrah,

Vehari,

Khanewal, and so on……..

DEMOGRAPHIC:

Our target customers are youngsters with the age of 15 to 35. There is no

gender differentiation

We will also divide our targeted market into small segment on the base of buying

situation. Our customers prefer which product or service’s features most and like to

buy that product or services. The usage rate of (how many time product or services

customers buy). There is no more awareness of games in Pakistan so we should use

those promotional tools which create awareness about games in people. Our target

location where we start our business is Multan.

TARGET MARKET:

“A group of people for whom the marketer designs the marketing mix is

called the target market. Our target market is Children, youth Adults and

anyone who is interested in games. We will Target (2, 75,000) people per

year.

MARKETING PLAN:

SITUATION ANALYSIS BACK GROUND OF VENTURE:

We are the student of AU as such we have no back ground in business

field and no experience in this field but as a student of business

administration we identify the business opportunity in Multan for gaming

zone.

All partners of this business are educated and have degree of MBA.

Zohaib Ahmed Arshad HayatBilal LeghariAli Raza

Strengths:Monopoly in Gaming Zone in Multan.

Big Target market.

New Computer Games

Good Location

Interest of teenagers in GamesEasy Promotion

Lower Cost than comparable Competitors

Weaknesses:

Small Place of Business

Lack of technical how know

Lack of skilled and trained employees

Access to Resources

Expensive Games and Hardware

OPPORTUNITY

Expansion of BusinessAdding Conference Room

Adding fast food or mini mart in Gaming zone

A new emerging or developing market(niche product, place, less competition)

New Technology

Increasing the purchasing power of customer.

Threats:

Lack of energy resources

Rapidly changes in technology

New competition in the market, possibly with new products or services

Availability of resources

Change in Political and Economic condition

Taxation

Market OBJECTIVES

To increase the salesTo increase the profit marginTo reduce the cost of servicesTo charge reasonable prices which is affordable for all people.To use no distribution channels, directly deal to our customersTo establish customers service center for improving our services qualityTo use such type of cheap promotional tools which is promote our product’s on wide areasTo maintain and increase the brand image

MARKETING STRATEGIES AND ACTION PROGRAMS:

After defining the marketing objectives and goals now we make market

strategies and action programs to achieve these goals. These decision

effects marketing mix of our business.

MARKETING MIX:

It is a combination of 4p’s. Product, price, place, promotion and

other marketing activities needed to meet marketing objectives.

We design marketing mix plan for the marketing of our business

gaming zone.

MARKETING MIX FOR GAMING ZONE

PRODUCT:

The products which we offer in our business are following:•Table tennis

•Hand ball

•Snooker

•Computer games

•Shooting

•3D Computer games

And so many others games

PRICE:

Price is a component of an exchange or transaction that takes place

between two parties and refers to what must be given up by one party (i.e.,

buyer) in order to obtain something offered by another party (i.e., seller). We will charge fee according to game.

PRICING STRATEGY

The pricing strategy which we will use according to the

research and data gathered and the situation prevailing

in our target market is value based pricing strategy.

PLACE:We started our business in Shershah near Bily-Da-Dera(Multan). It is

access able for all people easily in free time. Our all products or

services are available in gaming zone.

The distribution channel which we select for our gaming zone services

is one level channel distributions involve company and consumers.

PROMOTION:

After starting business and providing our product or

services in the market and getting place in the market

our next step is to promote our product through thick

or thin. In order to get high market share and loyalty

of customers. We use two types of advertisements in

order to promote our services

Print MediaElectronic media Other Sources

PROMOTIONAL TOOLS

PamphletRadio

Official page on Facebook

Banners

Press media

Electronic Media

Social Media

BUDGETS:This is our advertising budget. We use two types of media. The allocation of cost is as follow:

MEDIA OBJECTIVES 1ST YEAR 2ND YEAR AMOUNT

ELECTRONIC

MEDIA50% 35% 15% 25000

PRINT MEDIA 10% 10% 0% 10000

OTHER

SOURCES60% 50% 10% 15000

Ali Raza

ORGANIZATIONAL PLAN:LEGAL FORM OF BUSINESS:

Our business is partnership of four partners. The partnership is Limited

Liability Partnership (LLP), it is controlled by Partnership Act 1932 0f

Pakistan. According to this act LLC has following features,

One or more partners are with limited liability

The firm must be registered

The capital of limited partner is not returned to him till he remains a partner in the firm

There is at least one partner with unlimited liability

The limited partner can inspect the book of firm any timeA new partner can be admitted to the partnership firm without the consent of limited partners.

OWNERSHIP

Arshad Hayat ( General Manager)

Bilal Leghari ( Manager of Computer games)

Ali Raza ( Manager of mutual games)

Zohaib Ahmed( Manager of Marketing & Account)

LIABILITY OF OWNEROur partnership is limited liability partnership (LLP). According to limited liability partnership our partners are liable only that part which they contribute in business. Their personal property is not liable.

COSTS OF STARTING A BUSINESS:

Registration of firm name in industry

Need license for using technology

Agreement with legal advisor

Partnership deed for the conveying responsibilities, rights and duties of partners

CAPITAL REQUIRMENT

Banks loan

Additional capital contributed to each partner

New partnership agreement

DISTRIBUTION OF PROFIT AND LOSS

50, 50 profit/loss margin

On the contributed part of capital

On the base of skills (may be not contribute capital but his skills are very beneficial for the firm)

HIERARCHY:

OPERATIONAL PLAN:The operational plan includes all processes, activities and

operations that are necessary to run a business. The operational plan of our Gaming Zone Business includes the following activates.

PURCHASING:We first of all have to purchase the following assets for the

operations of our business from different suppliers.

STAFF FOR OPERATIONS OF BUSINESS

One of us will be General Manager.

One in the computer games area.

One of us check Accounts.

One will see the snooker, hand ball and shooting game and other games.

PRODUCTION PLAN:

SERVICE CREATION:•This means that how we can produce services and how we will deliver the services to our customers in business.

SNOOKER:TABLE TENNIS:CAROM, CHESS, PUZZLE AND MONOPOLYCOMPUTER & PLAYSTATION WITH 3D GAMES:GUN SHOOTING:HAND BALL:OTHER GAMES

BreakevenIn the end of 1st years we are taken breakeven. It means no profit and no

loss. But the land which we are taking on lease payment its breakeven occur after 10 years according to our lease payment per month.

Bilal Leghari

FINANCIAL PLAN:

SOURCES AND USES OF FUNDS

The ratio of the partners is as follow:

Partners Contribution Ratio 25%

Our total capital will be Rs. 57,875,774 out of this capital the partners will

contribute round about 15,000,000 and the remains will be raised from

financial institutes like: smeda, and banks etc.

Capital to be Brought in by Partners = Rs. 57,875,774Borrowed Amount (Loan) = Rs. 15,000,000Total Initial Investment Rs. 72,875,774

KEY ASSUMPTIONS

Revenue is Increased @ 20% per YearCost of Services is Increased @ 15% per Year

Salaries are Increased @ 5% each Year

Repair and Maintenance Expenses are Increased @ 20% each Year

Fuel and Utilities Expenses are Increased @ 10% per year

Retained Earnings are 75% of the Net Income

Interest Rate on Loan is 14%

Rental value of tender increased annually by 10%.Other assumptions are further mention in the notes to these projected financial statements.

YOUTH FUN LAND INCOME STATMENT FOR THE YEAR ENDED

DISCRIPTION RS.NET REVENUE 31,656,800

Salaries 1852,000Stationary Expense 1,000Rent Expense 1200,000Marketing and Promotion 16,000Repairs and Maintenance 250,000Electricity Expense 500,000Phone and Internet 96,000Misc Utilities 50,000Depreciation Expense 195100Total Expenses 3760100OPERATING PROFIT 2136700EBIT 22936700Interest on Loan Expense 1400000Profit before Tax 21536700Tax (5%) of N.I 2153670NET INCOME 19383030

Retained Earnings 75% OF N.I 14537273

YOUTH FUN LAND BALANCE SHEET AT THE YEAR ENDED 2014 .

ASSETS RS

FIXED ASSETS

Snooker 100,000

Carom 2000

Computers 5,00,000

Swimming 1,00,000

Hockey 62,500

Play Stations 62,500

Basket Ball 30,000

LCD’s 250,000

Valley Ball 30,000

Sound System 50,000

Furniture & Fixture 300,000

Projectors 50,000

Archery 10,000

Office Equipment 10,000

Security Cameras 15,000

Badminton 15.000

A.C.s 100,000

Generator 200,000

Lights fans And Décor 50,000

Table Tennis 25,000

Shooting Gun 25,000

NET FIXED ASSETS 19,87,000

CURRENT ASSET

Cash in Hand 3,00,000

Cash at Bank 5,10,000

TOTAL CURRENT ASSETS 8,10,000

TOTAL 27,970,000

LIABILITIES RS.

Loan 15,000,000

Profit Payable to Partners 200,000

TOTAL LIABILITIES 15,200,000

EQUITY

Capital 57,875,774

Retained Earnings 14,537,273

TOTAL 72413047

NOTES:

NOTE # 1

TOTAL ANNUAL REVENUE

Year 1 (Rs)

Total Annual Revenue from Games 31,656,800

TOTAL REVENUE 31,656,800

It is assumed that:

There are 360 working days in a Year

NOTE # 2

SALARY:

Year 1DESIGNATION SALARY/MONTH

(RS.)RS

General Manager 30,000 360,,000Manager Operations (Computer Games ) 23,000 276,000Manager Marketing & Promotions 23,000 276,000Manager Operations (Manual Games) 23,000 276,000IT Specialist 20,000 240,000Sweeper 3,000 36,000Sweeper 3,000 36,000Office Peon 3,334 40,000Office Peon 3,334 40,000Office Peon 3,334 40,000Security Guard 8,000 96,000Security Guard 8,000 96,000

Total 154334 1,852,000

Note # 3

TENDER LEASE MONTHLY:The building is acquired on lease and as per agreement the monthly lease payment for the building is Rs. 480000 for the first 10 years. The lease payment for the First year is to be paid in advance

Monthly Lease = Rs. 480000Annual Lease = Rs. 480000 x

12 = Rs.5760000

Annual Cost

Rs

Banner (Flex) 25,000

Brochures 10,000

Other Sources 15,000

Total 50,000

NOTE # 4MARKETING AND PROMOTIONS:

ASSETS COST RESIDUAL VALUE

BOOK VALUE

DEPRECIATION RATE%

ANNUAL DEP

Snooker 100,000 20,000 80000 15 12000

Carom 2000 500 1500 10 150

Computers

500,000 75000 425000 10 42,500

Play Stations

62,500 15000 55000 15 8,200

LCD’s 250,000 30000 220000 10 22,000

Sound System

50,000 5000 45000 15 6,750

Furniture & Fixture

300,000 50000 250000 15 37,500

NOTE # 5DEPRECIATION

Furniture & Fixture

300,000 50000 250000 15 37,500

Projectors 50,000 10000 35000 10 3,500

Basket Ball 30,000 10000 20000 10 2,000

Office Equipment

10,000 500 9500 10 950

Weightlifting

30,000 10000 20000 15 3000

Security Cameras

15,000 2000 13000 10 1300

A.C.s 100,000 20000 80000 15 12,000

Hockey 62,500 15000 50000 15 7,500

Generator 200,000 40000 160000 15 24000

Lights fans And Décor

50,000 2000 48000 10 4,800

Badminton 15000 5000 10000 15 1500

Table Tennis

25,000 3000 22000 10 2200

Shooting Gun

25,000 3000 22000 10 2200

Total 2087000 195100

Any Question