INTERNATIONAL ISLAMIC UNIVERSITY

ISLAMABAD.

BUSINESS PLAN

Submitted To:

Dr. FAROOQ HUSSAIN

Submitted By:

MUHAMMAD AZAM

REG# 4134

MBA 21 (B)

03335345212

FACULTY OF MANAGEMENT SCIENCES

In the name of

ALLAH,

The most

beneficent,

The most

merciful

Acknowledgements:

All praise to Almighty Allah for His blessings & guidance which gave

me the vigor & will to complete this Business Plan.

Secondly, I pay high notes of thanks to our respectable teacher Mr.

Farooq Hussain who assigned me this project which helped me a lot in

the enhancement of my knowledge & starting my own business.

And at last, but not the least, I am thankful to all of my respondents

because their friendly cooperation helped me to gather ample amount of

data to draw some meaningful conclusion from it.

Smart

Communication

1. Executive Summary

Cellular telephones have changed the communication arena, differently, how we perceive

voice communication. Usually, cellular phones remained out of hands of most customers

due to their high cost. So, most of the consumers have invested their time and resources

into finding a higher capacity cell phone with a lower cost.

Smart communication is taking advantage of opportunity to become a highly distinguish

and recognized leader in the cellular communication industry. It is goal of our company

to become market leader in selling cell phones in Islamabad.

In order to skill this goal, smart communications, s success factors will be to identify

increasing trends and put them into our company operations, respond quickly to

technology changes, provide high quality customer services, invest time in marketing and

advertising

Smart communication is formed as a sole proprietorship by Mr. Muhammad Azam in the

heart of Islamabad Blue area.

1.1 Keys to Success

Smart communication keys to success will include

1. Provide outstanding consumer services

2. Grow and maintain the network of consumers

3. React quickly to customer problems with products

1.2 Mission

Smart communication, s mission is to offer high quality cell phone products and services.

We believe it is important to remain a participating member of the community and

influence people, s lives in more ways than deriving a profit for them.

1.3 Objective

The company main plan to focus on the following target markets that will provide us

ability to market penetration. We will offer products and service packages that are priced

suitable for each segment and will offer the services that best suit segment, s needs.

1.3.1 Business Objective

Company growth

Become established as the leading cell phone seller

Increase number of shops throughout Islamabad

1.3.2 Financial objective

Create and increase revenue

1.3.3 Marketing Objective

Increase marketing efforts

Expand marketing area

Expand marketing research

Brand recognition

2. Company Summary

Smart communication will offer its customer GSM cellular and cellular phones

accessories.

GSM stands for “GLOBLE SYSTEM FOR MOBILE COMMUNICATION.” GSM is

basically a European technology and also largely adopted in Pakistan. It is a real benefit

of the owner to use their cell phone anywhere in the world.

The competition is in all over the market, only one who can get success if he offers new

and improved services and functions in cell phones. Cell phones have become an

important part of people lives all over the world and in Pakistan; some people use their

phone as entertainment device, some use as a business communication tool. The

consumption of cell phones in Pakistan is very high.

We believe that Blue area is a best place for our business because it has high customer

potential. Smart communication will provide its customer support and convince second to

none.

2.1 Company Ownership

Muhammad Azam khan is the owner of Smart communication.

2.3 Company Location

Our company, s address is Balochistan Palaza, G block, Blue Area, Islamabad, Pakistan.

And our website is www.smartcommunications.com

2.2 Start up summary

Mr. Azam will invest 8 Million Rupees in Smart communication and next 3 Millions

after the successful operations. The following table show projected initial start-up costs

for Smart communication.

Start-up expenses

Legal 200,000

Insurance 500,000

Rent 100,000

Equipment 500,000

Marketing expense 100,000

others 50,000

Total Start-up expense 1,450,000

Start-up Assets

Cash Requirement 400,000

Start-up inventory 5,145,000

Other current assets 5,000

Shop, s security 10,00,000

Total Assets 0

Total Requirements 6,550,000

2.3 SWOT Analysis

Strengths

Pioneer in market.

Provider of Quality Mobile Phones

Giving all services under one roof

E-trade

Prices stability

Weaknesses

Lack of experience

Initial attraction of customers towards Smart Communication

Rejection

Opportunities

Cell Phone Business is growing rapidly

Emerging trend of Cell Phone Customization

Increasing show off factor in human nature

People want satisfaction and reliability.

Peoples want connivance.

Threats

Huge financing

Lach of professional skill

People are price conscious.

Price fluctuation in market

3. Products

The following are the products that will be offered by Smart Communication

GSM cellular phones: Nokia, Sony Ericsson, Samsung, Sharp, Motorola,

Siemens, Alcatel, LG, China mobiles and Others.

Fixed Wireless Phones

Cellular Phone Accessories: antennas, batteries, belt chips, cable sand adapters,

cases, chargers, faceplates and modems.

4. Market Analysis Summary

The market potential is huge for our products due to the unstoppable growth of Telecom

industry. Currently, the telecom industry is among the strongest growth industries. Usage

of cell phone is increasing day by day and this growth is unimaginable. In our research,

this is forecasted that within two years over 65% of children from age of 10 to 15 will

have cell phones.

People usually use text messages to convey their message to their friends and other

source is email and some like to play games and some like to listen songs and make

videos and some want to take pictures. So, all these facilities people get form their cell

phones.

Our company will try to take advantage of all development and provide better brands in

the market.

4.1 Market Segmentation

Smart Communication will focus on five customer groups, putting in mind that it is quite

customary today to have more than one cell phone per family.

Children in the age group of 10 to 17 years old.

Students

General Public

Professionals

Service organization and companies that need to be instant communication with

their employees.

4.2 Industry Analysis

Cell phone shop is a business which you can easily run. But for a successful business you

need to have some extra marketing skills to satisfy the customers. In the whole

Islamabad, there are many small and large outlets of cell phone selling and purchasing.

So, there is lot of competition in the cell phone market. People have lot of choices for

purchasing their cell phone and accessories. So, it is not easy for a cell phone shop owner

to get the maximum share of the market but here is lot of opportunities to stable itself in

the market.

Smart Communication is aiming to gather a share of market from this competition

situation.

4.2.1 Competition and buying patterns

The key to the buying decision on the part of consumer is the salesman and the cell phone

in front of him or her. All the sellers have same brands names as those provide by Smart

Communication which may be less expensive. It is essential for the salesman point out

the salient aspects of cell phone and selling points favoring our products.

The need of today, s market is to provide customers quick and in time services. So, Smart

Communication will try to provide quick cell phone delivery and service.

Customers also want consistent, reliable and easy to use service. As the speed of service

increases, customer expectations grow, making friendly, easy and solution oriented

customer service an important business trend.

Some of shopkeepers are using E-trade to increase their market share and customers are

also very satisfied from it

So our company will try to adopt all recent market trends to get the market share.

4.3 Target Segment Strategy

The market for cellular phones and their accessories is very fragmented, crowded and

competitive. Among these, there is large number of shops for cell phone. So, there is high

competition in the market.

We expect to take full advantage of the trends described in the Market Analysis above,

and try to penetrate the market with new innovations and gadgets — mainly with the

younger generation, using advertisements and demonstrations.

5. Strategy and Implementation Summary

Smart Communication will try to service whole the market. Assumptions

Every person is a potential consumer and all our potential markets will experience

growth.

Marketing to the one segment will lead to an expansion in overall market growth.

Following strategies will help to support these efforts

5.1 Competitive edge

Smart Communication, s completive edge will be:

Location: locating in the heart of Islamabad enables the company to get maximum

market share due to the customer’s high turnover

Customer services: Smart Communication main focus on customer oriented polices so

our main purpose is to provide high quality customer services.

E-Commerce: The Company will make an effort to enhance its sales through a serious

and advantageous website in order to attract customers.

5.2 Marketing Strategy

Short term and long term strategies are very important to get the desired results.

With the short term strategies will bring us a temporary boost in traffic. Short term

marketing strategies include

Purchasing Advertising

Bulletin Boards

Search Engines

Similarly, long term strategies will bring us a steady flow of targeted traffic over time.

Long term marketing strategies includes

Having Personal Contact of Customers

Free of charge repairing services

Opt-in Lists

By creating and implementing short and long term marketing strategies, Smart

Communication will become able to get the maximum market share.

Our promotions will always stay in tune with our company objectives and mission

statement.

5.3 Sales Strategy

Constructing our sales Strategy we shall follow the following steps:

Sales Success Requires Planning- we shall formulate our sales strategy

to achieve our sales success.

Analyze Our Potential - we shall step through a process that will prepare us for the

development of our sales strategy.

Strategize Around Strengths - the objective of our sales activity will be analyzed

producing a report that secret factors influencing our sales potential.

Develop Our plan - we shall receive guidance to develop a comprehensive tactical plan

to achieve our success.

Measures Our Success - we shall continuously develop key measurements that mark the

progress of financial estimates that guide our growth.

Employ An Action Plan for Success - we shall provide our sales force a clear tactical

plan that is also aligned with management's strategic objectives.

The sales strategy of Smart Communication is simple. The key to customer satisfaction is

having the product and services that meet the customer's needs. An important part of that

is to also have knowledgeable employees to help customers quickly find what they want.

5.3.1 Sales Forecast

Sales forecast is very conservative — although we aim very high, we feel a very slow

growth and revise the plan on a yearly basis. As a rule we expect to expand the volume

much more rapidly.

6. Management Summary

The management of Smart Communication is made up of the owner, a marketing

manager and there other members who will be hired locally and will be added: a

programmer, there salesmen and two security guards.

6.1 Personal Plan

Smart Communication shop will operate 14 hours a day and 6 days a week. The shop

opening hours will be officially 11:00 a.m. to 10:00 p.m., it is clear that due to our

internet operations the customer support will be non-stop one.

7. Financial Plan

It is assumed that the owner, s private resources will be sufficient to finance any monthly

cash flow storage. However it is sensible to establish a bank relationship as soon as

possible. We should try to increase our sales and should have enough funds to support

our inventory and receivables.

Our other component on which the financial plan is based is wise purchases. Finding the

right product, at the right price will help the business to meet the targeted margins.

7.1 Important Assumption

The normal rule of our company will not sale on credit. But for some special cases, we

will provide short term credit against assurances. We shall accept cash and checks, Visa,

MasterCard, Pay pal on the internet.