Name of the Firm : Voguish Project : Jacket manufacturing Location : Bijapur Type of Organization : Partnership Name of Partners : Priyanka Jahagirdar

Ankit Porwal

Market segmentation

Geographic segmentation

Demographic segmentation

Target market

Product Positioning

This is an innovative product with no competitors. Hence we are positioning our product as a high quality product with ‘more for more’ positioning strategy.

 

Product

Features

Jacket with a good look

Keeps human body cool in summer and warm during winter season

It has a small electronic gadget in it to adjust the temperature which works on batteries

Price

We have adopted skimming pricing strategy to skim the market and to recover the investment made in research and development for the product.

 

Promotion

Advertisements in local channels of target cities.

Advertisements in local news paper of target cities.

Bill boards and hoardings in target cities.

Ads in magazines of Karnataka.

 

Place

Direct marketing

Strengths

Availability of Low Cost and Skilled Manpower provides competitive advantage to industry

Growing Economy and Potential Domestic and International Market.

Innovative product

 

Weakness

Lack of Technological Development that affect the productivity

Lacking to generate Economies of Scale.

 

Opportunities

Large, Potential Domestic and International Market.

Greater Investment and FDI opportunities are available.

 

Threats

International labor and Environmental Laws.

To balance the demand and supply

During summer and winter due to excessive heat and cold the productivity of people is reduced. By wearing our jacket the productivity people is maintained which in turn results in increasing performance of the companies and growth in profits.

This results in increasing revenue to the government by way of taxes which is used for the welfare and promotion of the society.

And also when companies earn good profits they perform their corporate social responsibilities in a better way

The jacket is also helpful as there are frequent power cuts.

Total cost of the Project:

S.No Particulars Total Value

1 Fixed Capital

i.Land & Building

ii.Machineries

15,00,000

13,20,000

2 Working Capital 10,00,000

3 Preliminary & Pre-Operative

Expenses

1,05,00,000

Total Value 1,43,20,000

S.No Particulars Amount

1 Own Investment (each

Partner 40,00,000)

80,00,000

2 Bank Loan 40,00,000

3 Loan from friend 30,00,000

Total Value 1,50,00,000

Particulars Amount(in ‘00)Per unit For 10,000

units

Direct material 10 1,00,000

Direct labour 0.936 9,360

Prime cost 10.936 1,09,360

Add Factory Overhead 1 10,000

Works cost 11.936 1,19,360

Add Administrative Overhead 5.064 50,640

Cost of production 16.00 1,60,000

Add Selling and Distribution Overhead 0.75 7,500

Cost of product 16.75 1,67,500

Profit (40%) 11.25 11,250

Selling Price 28.00 2,80,000

Particulars Amount(’000) Particulars Amount(’000)

To Purchases 10,000 By Sales 26,600

Manufacturingexpenses

1,000 Closing stock 1,400

Wages 936Gross profit c/d 16,064

Rs 28,000 Rs 28,000To Salary 864 Gross profit b/d 16,064

Carriage outwards 30Advertisement 120

Travelling exp. 70 Commission on sales

50

Printing and stationery 20

Postage and telegram 30

Audit fees 10

To Dep. OnLand and builbingMachineries

7566

Prelimnary exp. Written off 525

Interest on bank loan

480

To net profit c/d 13,724

Rs 16,064 Rs 16,064

FINANCIAL STATEMENTSTrading and Profit and loss account

Dr For the year ending 31st march 2012 Cr

Liabilities Amount

(’000)

Assets Amount

(‘000)

Capital 8000

Add net profit 13,724

21,724 Land and building 1500

Less dep. 751,425

Creditors 100 Machinery 1,320

Less dep. 661,254

Goodwill 200

Furniture 500

Debtors 2,000

Bills receivable 1,250

Investment 1,000

Stock 1,400

Prelimnary exp. 10,500

Less written off 5259,975

Cash in hand 700

Cash at bank 2,120

Rs 21,824 Rs 21,824

Balance SheetAs on 31st march 2012

Particulars Amount(’000) Particulars Amount(’000)

To Opening stock 1,400 By Sales 31,920

To Purchases 13,000 Closing stock 2,800Manufacturingexpenses

1,300

Wages 1,220

Gross profit c/d 17,800

Rs 34,720 Rs 34,720To Salary 1124 Gross profit b/d 17,800

Carriage outwards 50 Interest on investment

100

Advertisement 150

Travelling exp. 90

Commission on sales

70

Printing and stationery 40

Postage and telegram 30

Audit fees 10

To Dep. OnLand and builbingMachineriesFurniture

756650

Prelimnary exp. Written off

1,195

To net profit c/d 14,950

Rs 17,900 Rs 17,900

Trading and Profit and loss accountDr For the year ending 31st march 2013 Cr

Liabilities Amount

(’000)

Assets Amount

(‘000)

Capital 8000

Add net profit 14950

22,950 Land and building 1,425

Less dep. 751,350

Creditors 1350 Machinery 1,254

Less dep. 661,188

Goodwill 300

Furniture 500

Less dep. 50450

Debtors 3,500

Bills receivable 1,912

Investment 1,000

Stock 2,800

Prelimnary exp. 9,975

Less written off 1,195 8,780

Cash in hand 800

Cash at bank 2,220

Rs 24,300 Rs 24,300

Balance SheetAs on 31st march 2013