V kids Business Plan (15 batch Group 3)
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V kids Business Plan (15 batch Group 3) V kids Business Plan (15 batch Group 3) Presentation Transcript

  • V Kids Footwear
  • Presented by Group (3) Ma Hnin Thiri Chaw (Roll no. 4) Ma May Zin Htet (Roll no. 14) Ma Mya Myin Kyi (Roll no. 25) Ma May Myo Mon (Roll no. 36) Ma May Thu Naing (Roll no. 45) { Leader } Mg Thein Oo (Roll no. 53) Ma Zin Hnin Phyu (Roll no. 57) Ma Khine Hnin Hnin Thu (Roll no. 71) Ma Yin Mar Naing Win (Roll no. 81) Ma Ei Ei Phyo Zaw (Roll no. 90)
  • Executive Summary Business History Market Research Marketing Decisions Legal Decisions Manufacturing & Operations Personnel Strategies Financial Decisions Implementation Schedule Content
  • Executive Summary “V-kids” is a shoe manufacturer and exporter that will sell high quality kid’s shoes within five countries. We will offer wide variety of colors and styles and high quality materials used in the manufacture. Shoes size start from size 12 to size 23 and include half sides for example 12 ½. Our business will cater to the needs of kids’ age from infant to 5 years.
  • Business History Kids’ shoes manufacturer and exporter for babies’ footwear with good quality and latest trends. Partnership {owned by 10 partners} Manufacture using different fabrics such as velvet, cotton, wool, etc. Available in a wide range of gorgeous colors, designs and prints, these shoes are designed keeping in mind the most up-to-date fashion trends.
  • Company Description Name V-kids Address Shwe Pyi Thar Registered name ဗဗဗ-ဗဗဗ(ဗဗ) Contact number +951973166019 Fax +951217458 Domain name http://www.v-kids.shoes.com.mm/ Bank MICB, MFDP
  • Company Description Business Type Exporting Manufacturer Capital Investment $ 116,500 Total Annual Sales $ 48,250 No. of Total Staff 45 employees Year Establishment 2012 Payment Terms L/C (or) T/T Export Market China, India, South Korea, Thailand, Singapore
  • Company Logo
  • Slogan “Think shoes, Choose V-kids!”
  • Vision To be a distinguished kids footwear brand known worldwide for the quality of products, setting new trends and lifestyles. Mission To offer continuous value added products to our customers. To accomplish this, we focus on exceptional design, innovation, quality, convenience and interactive communication.
  • Production Process
  • Step (1) • Lay out the fabrics, cut 2 pieces for each pattern piece. Step (2) • Prepare the sole. Trace the shoe sole pattern onto the appliqué adhesive paper side and cut out. Iron the adhesive to the wrong side of the inside sole piece. Step (3) • Cut and lay out the top, wrap pieces. Lay them right sides together. Sew along the top as shown.
  • Step (4) • Place the right sides together at the center back of the heel with center bottom of the wrap as shown. Sew around until you reach the end of one side of the top wrap. Step (5) • Start at the center back again and sew the opposite direction, keeping close to the edge. To finish the edges you can either use an overcasting stitch, pinking shears or a serge the edges.
  • Cotton Baby Shoes (0-6)months
  • Velvet sandals
  • Baby wool boots
  • Cotton shoes
  • What we offer? Age - Infant to 5 years Size – 12 to 23 Color - Various Product Items - Boots, Shoes, Sandals Fabrics – velvet, wool, cotton.
  • Product Characteristics Light and Comfortable Soft Custom-made with a Perfect Fit Fully Lined Beautifully Crafted, High Quality, Constructed Correctly Cost-Effective and Practical
  • Strength & Core Competencies We ensure the excellence of our shoes are: Material Cut Design conformation Embroidery Stitching Stability Finish Color fastness
  • Trustworthy Raw Materials Fabrics • Velvet • Cotton • Wool We source all materials from reputable suppliers in China (mainland) and Taiwan who are international approvals holders so that you can be confident you're sourcing products that are safe for babies and children to use. Why trustworthy?
  • Benefits and Features Innovative Design With cartoon characters, beep, light, phosphorescent Highlighted Features Lovely designs and prints Eye-catching colors Long-lasting shoes Comfortable to wear Available in various sizes Cartoon pattern Seasonally design creation
  • Services For up to 5 years age groups, our variety of kids footwear is offered in different sizes and is tremendously comfortable to wear. “Our Multilingual Staff Responds Quickly” All members in foreign section are those who know English and Chinese well. So, our customers can contact us in English or Chinese today, and we'll respond within 24 hours.
  • Customer Value Creation A number of the factors that have made us the ideal choice of our customers are: Quality guaranteed goods Customization Capacity to accept mass orders Well-timed delivery Easy payment modes of Cash
  • Increasing competition, especially from branded baby footwear corporations High cost materials Changing demands and catering to this demand Changing fashions and changing behavior of demographics Challenges
  • Target Market Demographics Target Customers: Age up to 5 years Target Buyers: Parents, Family Members, Retailers, and Wholesalers.
  • SWOT Analysis - Product line with variations and innovative designs - Discounts are available for bundle buying - Expertise in getting new products to the market quickly - Expertise in providing good customer service - Online selling could be a competitive edge over similar rivals - New in business as compare to rivals - Huge capital required to start business as credit is not easily available from supplier in start - Marketing expense in the start will be huge, to establish brand name required lot of advertising Strengths Weaknesses
  • External Analysis - 2015 Free Trade Policy - Policy encourage exporting - Developing economy in Myanmar - Animated movies increased the demands and popularity of attractive design for kids - High birth rate opportunity for kids foot wear section - Technology improvement support for easy exporting transaction - Competition is high and big chains like Wall-Mart, Gap and Limited Incorporation introduced their kid’s shops in the city and penetrating in market - People are more conscious for pricing due to many competitions and going for discounts Opportunities Threats
  • China India South Korea Thailand Singapore Target Countries
  • Competition in Target Countries
  • Singaporean Rivals • Products: baby sandals, children flogs, kids shoes, children boots and sandals. • Products: baby shoes, sport shoes, evening dress shoes. Shoes’ at Endless Co.,Ltd Alibaba Shoes Factory
  • Chinese Rivals Shenzhen Baby Happy Import and Export Co., Ltd • Products: baby shoes, children shoes, kids shoes, children boots and sandals and shoes keychain. Jinjiang Jiaxing Shoes & Garments Factory • Products: Kid Clogs, Flip flops, medical clog, beach clog, baby sandals, slippers, lady slipper, shoes, etc.
  • Indian Rivals R.N. Overseas Co., Ltd. • Products: Children's Sandals, Children's Slippers, and Children's Shoes. Global Technology Fashion Co., Ltd. • Products: baby shoes, evening dress shoes.
  • South Korean Rivals Tobias Mayer Online Shoe Store • Products: Shoes, Sandals and all other clogs and boots by Birkenstock online. Silla International Co., Ltd. • Products: Shoe, Boots, Canvas Shoe, Sandal, Slipper.
  • Thailand Rivals Thai Interplus Trading Co., Ltd. • Products: Children Garment, Children's & Baby's Shoes, Skin Care, Costume & Fashion Jewelry. Psk Industries Ltd. • Products: Children's & baby's shoes
  • Marketing Decisions Distribution Strategies - Direct Exporting - Logistic Alliances Marketing Strategies - Locally by Marketing Department - Internationally by Foreign Distribution Group
  • Online Marketing
  • Price Range Myanmar Kyats 5000 to 8000 China Yuan 127 to 158 India Rupee 986 to 1233 South Korea Won 23000 to 28000 Singapore S$ 24 to 30 Thailand Baht 615 to 770
  • Myanmar (500*5,000Kyats =US$ 6.5) China (1000*12,000Kyats =US$15) India (1000*12,000Kyats =US$15) South Korea (300*12,000Kyats =US$15) Thailand (300*12,000Kyats =US$15) Singapore (400*12,000Kyats =US$15) Pricing Strategy
  • Penetration Pricing will be the pricing strategy V Kids
  • Promotion Strategy Advertising - Baby TV, Billboard Sales Promotion - Seasonal Discounts Sponsor - Kids show and Activities, School events Place – hospitals, theme parks, schools, shopping malls
  • Product Strategy Local Supermarkets Departmental Stores Specialty Stores International Supermarkets Shopping Malls Specialty Stores
  • Legal Decisions
  • Export Procedures Apply to Directorate of Trade for registration as exporter Partnership firm Terms of registration = 3yrs Issued by the licensing authorities concerned The validity of export license is 6 months from the date of issue, and can be extended for three months period at a time.
  • Export Procedures (continued) No export license fee Commercial tax = 2% Income tax = 30% LC = opened by MICB Shipment on F.O.B basis under Myanma Port Authority Shipping bills, other shipping documents, Country of Origin and customs pass, must be presented to the Bank for transaction.
  • Custom Clearance (Export Declaration) Export license / permit Invoice Packing list Sales Contract Shipping Instruction Payment advice referring Inward Telegraphic Transfer Private No./Inward Telegraphic Transfer Government No. Sample of goods
  • Manufacturing and Operations Location of production facilities for exports • State-of-art Machines • Sewing Machines • High Quality Materials H/O, Factory location – Shwe Pyi Thar Township
  • Personnel Strategies
  • Organization Chart BOD Legal Consultant GM Marketing Manager Assistant Admin And HR Manager Assistant Production Manager Assistant Finance Manager Assistant Foreign Relation Manager Assistant
  • Production Operation Procurement Cutting Embroidery Sewing Gluing Finishing Designing
  • Quality Control Step-by-step quality control system for Raw materials Fitting Stability Color fastness If one defect product has seen, it will reject to export.
  • Training and Hiring Well-trained program for staff to produce quality products and to reduce defects. Hiring temporary workers if the orders are unexpectedly rising.
  • Human Resource Designer with 5 years of international experience . Our top priority is designing safe products with cute designs that babies and children love. Over 30 percent of our staff members are designers, and most of them have at least 5 years of experience in this field.
  • Financial Decisions Start-up Expense Summary Profit and Loss Statement Cash Flow and Balance sheet Break Even Point
  • Budgetary for V Kids Kyats Owners Equity (7,000,000Kyats * 10 shareholders) 70,000,000 15% Bank Loan 20,000,000 Capital investment 90,000,000 Required Money for 1st Month of Operation Fixed Cost (Capital investment) 44,600,000 Expenses for 1st Month of Operation 27,025,000 Required Money for 1st Month of Operation 71,624,000 Reserve Capital in hand 18,376,000 *** Monthly Inventory (on hand) = 1000 units
  • Monthly Budgeted Trading, Profit & Loss A/C for V Kids for First Month of Operation V Kids Finance (edi G3).xlsx
  • (In Kyats) Revenue 38,500,000 Less: Cost of Goods sold 14,015,000 Gross Profit 24,485,000 Less: Expenses (13,210,000) Earning Before Interest & Tax 11,275,000 Less: Bank Interest Charges(20,000,000Kyats*15%/12months) (250,000) Earning Before Tax 11,025,000 Income Tax (11,025,000Kyats*30%) 3,307,500 Commercial Tax (38,500,000Kyats*2%) 770,000 (4,077,500) Net Profit 6,947,500 Retained Earning (2,500,000) Dividend Paid 4,447,500 Dividend Paid to (10) Shareholders 444,750
  • Break Even Point
  • Expected Annual Sales & Profit (Next 3 Years)
  • (In Kyats) Year (1) Year (2) Year (3) Gross Profit 315,820,000 317,620,000 365,940,000 (-) Production Cost 146,180,000 144,380,000 158,460,000 (-) Administrative Cost 20,040,000 20,040,000 23,160,000 (-) Sales & Distribution Cost 138,489,000 140,489,000 157,120,000 Earning Before Interest & Tax 157,291,000 157,091,000 185,660,000 Less: Bank Interest Charges(20,000,000Kyats*15 %/12months) (30,000,000) (30,000,000) (30,000,000) Earning Before Tax 127,291,000 127,091,000 155,660,000 Income Tax (11,025,000Kyats*30%) (38,187,300) (38,127,300) (46,698,000) Commercial Tax (38,500,000Kyats*2%) (9,240,000) (9,240,000) (10,488,000) Net Profit 79,863,700 79,723,700 98,474,000
  • Implementation Schedule Year/ Tasks 2012 2013 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Select Locations Develop Stores in Local Start Basic Kids shoes available for Selling Start Online Selling Expand Product Line Start Promotion activities Start Planning For New Location