Project inv & security analysis

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Business Plan:
Solar-Powered Tent

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Business of Solar-
Powered Tent
(Pre-feasibility Report)

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Submitted To:
M’am Tayyba Yousaf
Submitted By:
Danish Rasheed 113-F15-19
Khurram Raza 119-F15-19
Samrina Fatima 104-F15-19
Mehtab Amjad 102-F15-19
Hizra Ashiq 101-F15-19
Program:
MBA 3.5 Years, Semester-V, F-15-2019
Section (A) EVENING
UNIVERSTY OF EDUCATION

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Lower Mall Campus, Lahore
TABLE OF CONTENTS
Executive Summary:……………………………………………………………….7
Introduction:………………………………………………………………………..8
Solar-Powered Tent:……………………………………………….……………....9
Mission:……………………………………………………………….…….……...10
Vision:……………………………………………………………………….……...11
Values:……………………………………………………………………………....12
SWOT Analysis:………………………………………………………………….....13
Why Solar-Powered Tent?..........................................................................................18
Market Research:……………………………………………………………..….…..19
Market Development:……………………………………………………………......23
Market Mix:……………………………………………………………….…………27
Product:………………………………………………………………………………28
Price:…………………………………………………………………………………29
Place:…………………………………………………………………………………30
Promotion:……………………………………………………………………………31

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Manufacturing Operational Plan:…………………………………………………….32
Plant and Machinery…………………………………………………........................33
Financial Projection:………………………………………………………………..36

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Conclusion ………………………………………………………………….42

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Executive Summary
Solar-Powered Tent is a project of Solary Energy, that is big need of current era in Pakistan due to
shortage of electricity. We are think innovative product solar-Powered tent with Wifi conection of evo
and lighting and charged through sun energy.
This project is provide a best journey product for tourist of Historical places. That is creat a concience of
jurney and provide a opportunity of relaxtion on any place with solar-Powered Tent.
So, we can say that SolaPowered make a journey is easy for Tourest.

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The purpose and scope of this information memorandum is to introduce the subject
matter and provide a general idea and information on the Solar-Powered Tent. All the
material included in this document is based on data/information gathered from various
sources and is based on certain assumptions. Although, due care and diligence has been
taken to compile this document, the contained information may vary due to any change in
any of the concerned factors, and the actual results may differ substantially from the
presented information.

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The Concept Tent (also known as the kaleidoscope or solar powered tents) was thought up
because of festivals and the fact that partygoers always need to keep in touch with mates while
they’re camping and roaming around the festival site.
The resulting concept makes for a seriously cool tent with some awesome camping gadgets, which
could help inspire a carefree nomadic lifestyle in full-on glam camping style!
Kaleidoscope and Orange Communication designed it in partnership to celebrate Glastonbury
Festival. For us the best bit about it is the revolutionary new way it collects direct sunlight, and
what this design might mean for luxe glamping and eco camping in the future… particularly if you
want to have a nomadic lifestyle. So if you’re wondering, “when’s this solar tent for sale?” well
we’ve got news for you there too.
Control Centre
The control hub also has a wireless charging pouch which powers mobile phones and other portable
devices without the need for messy wires and multiple chargers. The ‘magnetic induction’ technology
passes an electric current through a coil embedded in the charging pouch and this in turn generates a
magnetic field which creates a charge and powers the battery. For non-tecky people like us out there…
this means it’s one extremely clever solar tent!

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“To provide comfortable journey with solar power tent and enjoy full
movement with camping..”

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“To be a leading in solar powered tent company in Pakistan and provide a
best values and Quality to customer for comfortable journey and enjoy
camping and dynamic leadership and commitment with partner and stake
holder.

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Values:
The core values of the company comprises of the following
 Leadership:
 Collaboration:
 Integrity:
 Accountability:
Quality:

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Features of Solar
Powered Tent:
 The solar-powered tent contains photovoltaic fabric to generate solar energy, a
rocking heated groundsheet, wireless hub and magnetic induction charging pouch.
 The innovative ‘glo-cation technology’ of this Orange tent will allow the user to
identify their tent by using the powers of a cellphone through SMS or RFID
technology.
 Whenever you will active the feature, the motorcycle helmet-shaped tent dome will
glow gently, pointing you back to your tent.
 This tent will offer the required assistance when you are on a holiday, even, you
can retreat it to your home turf.

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Strength:
 Abundant supply of source of energy i.e solar radiation, hence low running cost.
 First, mover advantage.
 Multi utility product.
 Re usage of components at the end of life cycle.
 Advance technology back content cell allow for flexibility per square feet.
 Unique frameless design includes cell fixed metal re-import mounting or customize easy
installation.
 The rigorous quality control to meet high international standard CU,TUV.
 High cell efficiency quality silicon material and long term output, stability and reliability.
 Unique frame design with high mechanical strength for easy installation.
 Outstanding electrical performance under high temperature and low irradiance condition.
 Excellent performance in harsh water.
 Quickly quality control insured the stability and reliability.

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Weakness:
 Large initial cost.
 Availability of trained manpower for manufacturing.
 Large number of Add-on required.

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Opportunities:
1) Participation with a growing industry.
2) Addition of new varieties
3) Modification according to present requirement
4) Growing usage and application of mobile technology.
5) Growing popularity of solar energy as a result of increasing energy arising.

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Threats:
1. Existing charges in the market
2. Exclusivity of ideas…
3. High risk as it is an entry level product.

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Why Solar-Powered Tent?
 The Concept Tent (also
known as the solar powered tent) was thought up because of demand by nomads,
recreational campers, and disaster victims.
 Tents are typically used
as overhead shelter for festivals, weddings, backyard parties, and major corporate
events and the fact that all tent users need to keep in touch with their families,
friends and colleagues while they’re for example, camping and roaming around the
festival site.

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Market Research:
We have conducted a market research through social media , like Facebook, twitter,
whatsapp, etc. Direct interviews of tourists and students of business response from them.
We have also conducted survey from different students and people through questionnaire
by asking some questions regarding the product in different institutions. Through this
survey we have come to know that not only the tourist but students are also much
interested in this new product and they are very conscious regarding their journey related
issues. We have no such competitor in the market as this product is totally new concept in
the Pakistani market and we are hoping to attract large number of customers.

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Market Description:
Lahore is referred to as the cultural heart of Pakistan. According to the latest 1998
census, Lahore's population was 6,319,000. In July 2014, Index Mundi put the
population of the city at 7,566,000. An estimate in January 2015 gave the population of
the Lahore agglomerations 10,052,000. It is ranked 34 in the most populated urban areas in
the world and the 8th largest city within the Organization of Islamic Cooperation. We have a
spread nationwide market of different convenient product. People are nowadays very
much concerned about the market and product conditions. So we have a growing
prospect of customers of “Solar Powered Tent”. Among the population we worked out
few segments of customers who will prefer our product most.
Market Segmentation and Targeting:

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Market Segments
We have observed and analyzed the market and based on the nature
of the market we segmented the market in the following sectors:
Demographics:
Individuals
Family
Sportsmen
Business buyer
Psycho graphics:
Higher class
Higher middle class
Middle class
Behavioral:
Tourist people
Journey fonder
Sophisticated who take the new product from the market?

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Market Entry Strategy:
We will enter the market on the basis of the following strategies
 New Product For The Market
 Based On Solar Power energy
 High Quality
 Low Price
 Combination of different features

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Market development:
As our product is new in the market question arises how will we develop the market for
our product? Market development will be done on the basis of the following
 Target different geographical markets
 Use different sales channels
 Target different groups of people
Competitors:
Although the concept of Solar powered tent is new in Pakistani market but we have
some indirect competitors which are solar power companies.

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Strategies against Competitors:
To compete with the competitors we are adopting the following strategies.
1. Providing the best service to create high customer satisfaction
2. Reasonable and acceptable pricing
3. Promising and providing top quality product
4. Launching highly effective mass promotional activities
5. Continuous innovation and modification of the products

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Product Design:
If our product will be successful in the market we will offer Solar Powered Tent in
different size and different more features & prices.

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Price:
We have set the reasonable price because we assume that the market is price sensitive.
Our overall objective is to capture the maximum market share by setting reasonable price.
Price Rs. 40,000.

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Place:
Our product will be sold in
 Tourist Place
 Big Cities
 Universities Tourist students

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Distribution channel:
In the initial stage, we will distribute the products with our sole distribution channel.
When our market will spread out, we will distribute our products through dealers. We
will set our own outlets in few core market positions. When we will go for mass
marketing, we will supply our product nationwide through dealers.

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Promotion:
For Initial advertisement of our product we believe that the most efficient and effective
sources include
• Newspaper
• Bill Boards
• Web Marketing
• Social Media
Public Relationship:
We have future plans to hold seminars, commit social development, supporting social
activities, to arrange cultural functions and mobile game shows for publicity purpose.

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Manufacturing Process:
 A tent is a shelter consisting of sheets of fabric or other material draped
over, attached to a frame of poles or attached to a supporting rope.
 While smaller tents may be free-standing or attached to the ground,
large tents are usually anchored using guy ropes tied to stakes or tent pegs.
Manufacturing & Operation Plan:
Factory location:
We are setting our Manufacturing plant in Kot Lakhpat area of Lahore.
Human Resource:
The board of directors will be responsible for the recruiting activities. Recruiting will be
done through written tests followed by interviews.

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Technological Aspects:
To create and innovates new quality products we need to use advanced technology. We
need high tech machineries imported from the foreign countries. Not to mention, skilled
people to operate them. We have already studied all the technical aspects and prepared a
list of instruments and their costs. The machinery will be collected when required.
Plant & Machinery
Stitching Machine for Tent:

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Solar flexible cell fitting:

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Required Material:
 Fabric cloth
 Flexible Solar panel cell with battery power
 Metal Stand
 Remote control system
 LED lighting system
 Charging cables of Mobile & PC
 Circuit of Wi-Fi Device
 Circuit for Switch
 GSP location
Human Resource Requirement:
Human Resource Requirement Details
Description No. of
Employees
Salary Per Month
(Rs)
Annual Salary
(Rs)
Owner/Manager 2 35000 840,000
Supervisor 2 20000 480,000
Labor @ Rs. 15,000/ person 8 15000 360,000
Guard 1 10,000 10,000
Total 1,690,000

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Cost Estimation:
Solar-Powered Tent
Cost of goods Sold
For the year ended Dec. 31st,
DEC 2018
Amount in (Rs)
Description
1st Year
Purchases of raw material
2,000,000
Raw materials available 2,000,000
Raw materials transferred to production 1,800,000
Direct labor 1,500,000
Indirect labor 1,00,000
Factory over head (FOH) 2,00,000
Cost of goods manufactured (Cost of goods available for sale) 3,600,000
Less: Ending inventory 1,00,000
Cost of goods sold 35,000,000

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Unit Cost = 3,500,000 / 1000 = Rs. 35,000
There are two types of cost Fixed and variable cost in our new product development
projected fixed cost is RS 25,000 fixed cost includes machinery on 1 unit of solar
powered Tent.
There are some variable costs like packaging, monthly bills & salaries of employees so
on. These cost tend to be constant per unit production we have estimated that per unit
variable cost is RS 1,000
Details Amount in RS Amount in RS
Land & Building 5,00,000
Machinery 3,00,000
Total Fixed Asset 8,00,000
Marketing Expenses 50000
Preliminary Expenses 150000
Furniture & Fixtures 100000
Total Capital
Expenditure
250000
Working Capital
Needed
2 Million
Total Cost of the
Project
3 M

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Projected Profit & Loss Statement:
 We expect to increase our sales in the coming months at a rate of 15%
 We expect to reach breakeven by 1st
Quarter of 2018
 We expect to make our company profitable by 2nd
Quarter of 2018.
Solar-Powered Tent
Projected Income Statement
For the Year Ended Dec. 31St
___DEC____
Descriptions
1st year 2nd year 3rd year
Sales (1000 Tents * 40,000 ) 40,000,000 46,000,000 52,000,000
Less: Cost of goods sold (As per CGS) 35,000,000 40,250,000 45,500,000
Gross profit 5,000,000 5,750,000 6,500,000
Less: Operating Expenses
Salary 2,000,00 2,20,000 2,40,000
Maintenance expenses 1,00,000 1,10,000 1,30,000
Rent of building 50,000 55,000 60,000
Depreciation (8,00,000*10/100) 80,000 80,000 80,000
Subtotal 3,30,000 465,000 510,000
Earnings before taxes (EBT) 4,670,000 5,285,000 5,990,000
Less: Tax (4,670,000@10%) 467,000 528,500 599,000
Net Profit 4,203,000 4,756,500 5,391,000
Amount in (Rs)

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Amount in (Rs)
Solar-Powered Tent
Projected Balance Sheet
As on Dec 31st __DEC______
Descriptions 1st year 2nd year 3rd year
Current Assets:
Cash & Bank balance 35,000,000 40,250,000 45,500,000
Ending Inventory 1,00,000 1,15,000 1,30,000
Account receivables 5,000,000 5,750,000 6,500,000
Advanced rent 100,000 200,000 250,000
Fixed Assets 40,200,000 46,315,000 52,380,000
Machinery & Equipment 800,000 720,000 640,000
Less: Depreciation 80,000 80,000 80,000
Furniture & Fixture 100,000 150,000 200,000
Total Assets 41,020,000 47,105,000 53,140,000
Current Liabilities 2,000,000 4,000,000 7,500,000
Owner’s Equity 34,817,000 38,354,500 40,249,000
Retained Earnings 4,203,000 4,750,500 5,391,000
Total Liabilities 41,020,000 47,105,000 53,140,000

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Break Even Analysis Of "Solar Powered Tent"
(i)Demand Break Even Point :
x-
axia
Demand
& Supply
1-
T
E
0
1-
T
Units
y-
axis
A point where demand and suuply of our pruduct are equal, it is equilibirum of our
product where we produce maximum units for meet the supply.
(ii) Cost & Revenue Break Even Point:
The formula approach to break-even analysis uses an algebraic equation to calculate the
BEP. In this analysis, sales volume, rather than production activity, is the focus of the relevant
range. Th e equation represents the variable costing income statement and shows the
relationships among revenue, fi xed cost, variable cost, volume, and profi t as follows:
R(X) = VC(X) FC P
where R = revenue (selling price) per unit
X = volume (number of units)
R(X) = total revenue
VC = variable cost per unit
VC(X) = total variable cost
FC = total fixed cost
P = total profit

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It Is estimated cost of "Solar Power Tent"
Solar Power Tent Revenue per unit (R) = 40000 PKR/-
X = Volume number of units = 1000 Solar Power Tent
T(X) = Total Revenue = 40000000 PKR/-
VC = variable cost per unit = 10000 PKR/-
VC(X) = total variable cost = 1,000,0000 PKR/-
FC = total fixed cost = 25,000,000 PKR/-
P = total profit =5,000,000 PKR/-
Per
Unit
Total Cost Per%
Sales ( 1000 Units) 40,000 40,000,000 100%
Variable Cost 10,000 10,000,000 30%
Contribution Margin 30,000 30,000,000 70%
Fixed cost 25,000,000
Net profit 5,000 15,000,000
Breakeven Sales Units Are:
Break-even volume equals total fixed cost divided by contribution margin per unit
(revenue per unit minus the variable cost per unit). Using the information in Table for Backpack
Company (Rs.40,000 selling price per Tent, Rs.10,000 variable cost per Tent, and Rs.25000,000
of total fixed cost), the BEP for the company is calculated as
Break Even Point ( Unit ) = 15,000,000 / 30,000
Break Even Point (Unit) = 5, 00 Units (Solar Power Tent)
Breakeven Sales Rs. Are:
Another method of computing BEP in sales dollars requires the computation of a contribution margin
ratio (CM%), which is calculated as contribution margin divided by revenue. Th is ratio indicates what
proportion of revenue remains after variable cost has been deducted from sales or that portion of the
revenue PKR that can be used to cover fi xed cost and provide profi t. Th e CM% can be calculated
using either per-unit, or total, revenue and variable cost information. Dividing total fi xed cost by the
CM% gives the BEP in sales PKR.
Break Even Point ( Sales ) = 30,000,000 / 0.75
Break Even Point (Sales) = 40, 00,000 PKR/-

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Graphing Approach to Breakeven:
Graph of Total and Fixed Cost
35,000,000
Total
Cost
Cost
25,000,000
Fixed
Cost
1 1000
No. of Solar Power
Tent
BreakEven Point "Solar Power Tent:

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Rs.ooo 30000
25000
20000
15000
10000
5000
Fixed Cost
0 200 400 500 600
-5000 No. of Backpacks
-10000
-15000
-20000
-25000
-30000
The graphing approach to breakeven provides a detailed visual display of the
BEP. It does not, however, provide a precise solution because exact points cannot
be determined on a graph. A defi nitive computation of the BEP can be found
algebraically using the formula approach or a computer software application. A
third approach to illustrating breakeven is the income statement approach.
..My DocumentsDownloadsBreakeven Analysis report.xlsx

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Conclusion
 A new breakthrough in the field of solar technology. And if you are an internet
addicted freak, you love this!
 Finally, is a way you can enjoy camping!
We would always have to do efforts to improve the quality and pay attention towards
what are competitors are coming with. In order to maintain the competitive advantage
by always doing better than and retaining our customers.

Project inv & security analysis

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