This document provides financial details for a proposed shoe manufacturing business called FUBE. It includes a loan payment schedule, investment details from partners, vision/mission statements, SWOT analysis, market analysis, product details, marketing mix strategies, and 3-year projected income statement. The business aims to produce medicated shoes for diabetics to help prevent foot complications and provide a more comfortable walking experience.

1. BY VIRANI SHAHROZ

2. Füße
(In German it means feet)

3. Means of Finace
S.no PARTICULAR AMOUNT
1 Bank Loan (50%) 5000000
2 Equity (50%) 5000000
TOTAL 10,000,000
Partner's Investment
S.no PARTICULAR AMOUNT
1 Partner 1 1,000,000
2 Partner 2 1,000,000
3 Partner 3 1,000,000
4 Partner 4 1,000,000
5 Partner 5 1,000,000
Total 5,000,000

4. Year Principle Remaining
Installment
Interest (11%) Total Amt. Paid
Balance of
Paid Principle
1ST YEAR 5000000 1000000 550000 1550000 4000000
2ND YEAR 4000000 1000000 440000 1440000 3000000
3RD YEAR 3000000 1000000 330000 1330000 2000000
4TH YEAR 2000000 1000000 220000 1220000 1000000
5th year 1000000 1000000 110000 1110000 0
LOAN PAYMENT SCHEDULE

5. Vision:
Intended to protect and
comfort the human foot from
complications

6. Mission
FUBE Mission is to reduce complication of foot sores,
ulcers and blisters in the highly sensitive area of human
body (Feet) to provide relax and injury free walking
experience to its customers

7. KEY SUCCESS FACTORS
• 1. The key to success of this project is in manufacturing good quality Male
shoes Quality standards should be followed strictly.
• 2. Strong presence in the domestic market. Traders/Wholesalers are already
present in the local market.
• 3. Tools & equipments locally available at low price.
• 4. Raw materials are available in sufficient quantity.
• 5. Availability of other inputs like Adhesives, chemicals, last, punch, mould,
grinderies and packing materials (boxes) etc.
• 6. Vast pool of skilled labor.
• 7. Stable business environment till today and growing day by day.

9. STRENGTH:
• Medicated and health favorable sole used to make the customer waking experience more
comfortable
• Enhance the waking capacity of customer by providing equal weight balancing mechanism
• Cost advantage will enhance the profitability by importing medicated sole and interior
sheet from china and buying leather from our local market to capitalize our raw material
• Certified from Ministry of National Health Service Regulation and Pakistan Diabetes
Association
• Innovative customer service of door to door delivery
• Unique design with long durability and less risk waking experience
• Cheap labor and resources decrease more functional and production cost
• Less production of same product with low concentration of the competitor could lead to
capturing more target audience and the market share

10. Weakness
• Less brand awareness and recognition in market
• Less awareness about the product and its useful advantages among the
diabetic patients
• Law and order situation cause security issues for establishing new
business structure
• Lack of power resources like electricity and other resources
• More loyalty towards cheap brands due to less bargaining power of the
customer

11. Opportunities
• People are getting more conscious about health and getting aware about the
complication of diabetics and its useful care
• Increasing number of diabetic’s patient is increasing rapidly and it will double to
number within the period of 10 years
• Medical association and hospitals are enhancing more efforts to develop more
awareness of using medicated shoes among the diabetic’s patients that also increase
the demand of our product and FUBE is using the doctors and medical institution to
play role of brand ambassadors among the customers
• New product will help FUBE to enhance their brand loyalty and preference among
customers
• Export product to different region of the world

12. Threats
• Complex market and competition as market got many local unknown brands
with counterfeits of highly exclusive brands
• Less bargaining power of customer leads them to use counterfeits product
• Government unusual laws and regulation regarding imports of raw material
• Fluctuation of currency rates (Dollar $) in Pakistan
• Export decline due to war on terror and Pakistan Got degrades in the
regions of Europe, and even in some regions of Middle east and Gulf regions
• Threat of substitute product as there is a less switching cost

13. Market Analysis

14. VALUE IN '000' $
NO. C O M M O D I T I E S
September July-September
2014 2013 % Change 2014-15 2013-14 % Change
1 FOOTWEAR 8,628 7,261 18.83 32,227 25,575 26.01
EXPORT FOOTWEAR 2013-14

15. SINCE HOW MANY YEAR YOU ARE SUFFERING FROM DIABITICS
A. 1-5 years B. 6-10 years C. 11-15 years D. Above
0
1
2
3
4
5
6
7
8
9
10
A B C D
Series1

16. Do you face issues in feet while wearing shoes/slippers?
A: Yes B:No
0
2
4
6
8
10
12
14
16
18
YES NO
Series1

17. What type of shoes you wear regularly?
A: Normal formal shoes B:Runner shoes
C: Clothed shoes D:Other
0
2
4
6
8
10
12
A B C D
Series1

18. Are you satisfied with the shoes you use regularly?
A:Yes B:No
0
2
4
6
8
10
12
14
16
18
A B
Series1

19. Do you know about the consequences that you might face
if you choose wrong category of shoes for daily use?
A:Yes B:No
0
2
4
6
8
10
12
14
16
A B
Series1

20. DO YOUR SHOES INCREASE YOUR LEG PAIN ?
A: YES B: NO
0
2
4
6
8
10
12
14
16
18
20
A B
Series1

21. SHOE STRUCTURE Flow
 Sole
 Insole
 Outsole
 Heel
 Upper

26. Shoe Making Process
• Product Development
• Designing and Pattern Cutting
• Clicking/ Components Division
• Closing or Machining
• Lasting
• Packing

27. Macro Environmental Analysis
 Demographics:
Target segmented: Diabetic Patient
Age Group: All age Group major focus on 35-onwards
Targeted Region: Karachi
 Economic Factor:
The economic factor is favorable for production process due to rapid enhancement of the demand of the Diabetic patients in
Pakistan
 Technological factor:
Enhancement in technology could impact the production but it could be used as in favor of the organization to explore more to
improve the quality of the product
 Political and legal Forces
To ensure the quality of the product company will be certified by the Ministry of National Health Service Regulation and Pakistan
Diabetes Association to provide assurance of the quality of the product
 Social Factor:
The organization will perform the operation damaging least social factors of the society as company is working to ensure
favorable health condition and gave secure healthy environment to the society. Company will focus to create more awareness
that how they patients could save them from unusual injuries and complication that may cause complications

28. Micro Environment Analysis:
• The suppliers:
The supplier has bargaining power as there are less suppliers in the market that supply custom orthotic
sheets that use in medicated shoes most of the other layers of the product will be purchased from
different suppliers that help to attain bargaining power the company also import layers from china for
cost deduction
• Customers:
The customers will be hospitals (B2B) and doctors who recommend their patients to use the medicated
shoes and gave them awareness about the product the customers B2C to target the customers directly
by using different marketing actions to attain market share
• Competitors:
The direct competitors are Nike and Adidas who make the medicated shoes they are working on
differentiation strategy but not impact us as they are not giving a good variety and design in their
product which help our company to create a good diffraction and competitive marketing advantage for
the company among competitors in the market.

29. COMPETITIVE ANALYSIS:
• Direct Competitor:
The direct competitor for FUBE is NIKE and BATA which give a good and
sound competition in the market, as they are old brands so our company
will take them as benchmark as well
• Indirect Competitor:
The indirect competitors will be other shoe making companies as the
customers are not aware of the product as well as the features they might
go for regular shoes. Second in medicated distribution times medical could
be our competitors if they refuse to shelf our product as they are selling
Bata and Nike product.

30. COMPITATIVE MATRIX
Factor FUBE Nike Bata Service Aero soft
Shoemaker/ manufacture Yes No Yes Yes No
Durability 3 4 3 2.5 3
COMFORT 4 4 3 3 5
MEDICATED 4 3 4 - 3
PRICE(RS) 600-1500 1450-22000` 1400-7000 1200-4000 1500-2500
Material 4 4 3 3 3
Promotion/advertisement Yes No No Yes Yes
Discounts Yes No No No No
Awareness program Yes No No Yes No
Affiliation with doctors and medical
institutions
Yes No No No No
Certified by medical institution Yes No No No No
Design 5 3 3 2 4
Superior quality 5 4 3 2 4
Customer satisfaction 4 3 4 2 3
Weight Low High Medium High Medium

31. Marketing Mix

32. PRODUCT
• FUBE provide shoes with a high and wide toe box. Toes that rub against each other or
against the shoes get blisters, and those lead to foot ulcers.
• Shoes will distribute your weight evenly so there are no "hot spots" to cause pressure pain
and sores. The soles of diabetic shoes are thick and have special stabilizers
• Diabetes causes nerve damage, called parenthesis, which means your toes cannot warn you
that they are hurting. So shoes will have extra room with shoes that are a half size larger
than your feet
• Walking on the inside or outside of your feet because they hurt can cause hot spots. The
strong, thick soles in diabetic shoes will not let this happen.
• Diabetic feet are either numb or extra sensitive from parenthesis. That is why our shoes
give you a smooth inner lining with nothing to rub against your toes or feet as you walk.

33. PRICE
• Price of the product will be according to the style and quality but as a
whole FUBE is concentrating to gave product as much cheap pricing
strategy which makes the company to compete the most appealing
brands of BATA and Nike and other prestige brands

34. PLACE
• FUBE will several outlets in Tariq road and other regions of Karachi
where he shelf all the product as well as FUBE will distribute its product
through wholesalers and distribution to get connected with the
retailers to reach most of the customers in Karachi.

35. Promotion
• ADVERTISING – A MASS MEDIA APPROACH TO PROMOTION
Outdoor
Business directories
Magazines / newspapers
TV / cinema
Bill boards
Banners/posters
• SALES PROMOTION - PRICE / MONEY RELATED COMMUNICATIONS
Coupons
Discounts
Competitions
Loyalty incentives

36. PROMOTION CONT….
• DIRECT MARKETING - TAKING THE MESSAGE DIRECTLY TO THE CONSUMER
Mail order catalogues
Bulk mail
Personalized letters
Email
Telemarketing
• BELOW THE LINE MARKETING

37. POSITIONING STRATEGY
• FUBE position its brand among the customer as the low price high
quality product which gave more feature in less price which
differentiate us from the compotator in the market and will help to
compete effectively
• Following is the positioning matrix of major brands direct/ indirect
rivals of FUBE

39. PROCUREMENT STRATEGY
NEED ANALYSIS
IDENTIFY KEY SUPPLIERS
RECIEVE TENDERS AND QUOTATIONS
EVALUATE THE SUPPLIERS AND CHOOSE BEST PRICE FIT
SELECT THE SUPPLIER AND IMPORT THINGS
NEED ANALYSIS
IDENTIFY KEY SUPPLIERS
RECIEVE TENDERS AND QUOTATIONS
EVALUATE THE SUPPLIERS AND CHOOSE BEST PRICE FIT
SELECT THE SUPPLIER AND IMPORT THINGS

40. HUMAN RESOURCE
PERTICULAR no MONTHLY ANUALLY
Director 1 50,000 600,000
Production staff
Production supervisor 1 25,000 300,000
Designer 1 20,000 240,000
Foremen 2 15,000 360,000
Mechanic 1 12,000 144,000
HELPER/PEON 1 7,000 84,000
ADMINISTRATION STAFF
Marketing Executive 1 15,000 180,000
Procurement 1 20,000 240,000
Accountant 1 18,000 216,000
Shop keeper 2 12,000 288,000
Helper/Peon For Shop 1 5,000 60,000
Guards 2 8,500 204,000
TOTAL 15 207,500 2,916,000

41. MACHINERY REQUIREMENT
Machinery
No. Particular Quantity Price per unit Amount
1 Cutting clicking press and cutting board 1 15000 15,000
3 GP 4 Machine 2 50000 100,000
4 Skiving Machine 2 25000 50,000
5 Upper Stitching Flat Bed Machine 4 20000 80,000
6 Upper Stitching Post Bed Machine 2 25000 50,000
7 Cylindrical Bed / Bending Machine 1 40000 40,000
8 Sole Attaching Press 1 230000 230,000
9 Sole Activator 1 400000 400,000
10 Finishing machine 1 40000 40,000
11 Finishing machine 1 50000 50,000
12 Punching machine 1 35000 35,000
13 Air Gun for colouring 1 50000 50,000
14 Generator - 50 KVA 1 300000 300,000
COST OF MACHINERY 1,440,000

42. OFFICE EQUIPMENT AND FURNITURE
Cost of Equipment
S.no Particular Quantity Price per unit Amount
1 Computer 10 23,900 239,000
2 Software (inventory management ) 50,000
3 Telephone instruments 20 1,600 32,000
4 Fire extinguisher equipment 10 5,000 50,000
5 Generator 1 300,000 300,000
6 office Supplies 1 20,000 20,000
7 Packaging Expense - 500,000 500,000
8 Camera 15 5,000 20,000
EQUIPMENT 1,211,000

43. Cost of Furniture
No. Particular Quantity Price per unit Amount
1 Sofa Set 4 10,400 41,600
2 Revolved Chairs 15 2,000 30,000
3 Office desk 15 10,000 150,000
4 Office Cupboard 10 8,000 80,000
5 Cabinet 10 11,300 113,000
6 Working table 20 9,000 180,000
7 Dustbin 15 100 1,500
8 Air Conditioner 10 50,000 500,000
9 Lights 50 40 2,000
10 Fans 15 1,200 18,000
11 Exhaust Fans 4 1,500 6,000
12 Others 5,000
FURNITURE 1,127,100

44. Cost of Construction
No Particular Amount
1 Production area 1,313,950
2 Storage area 230,500
3 Administrative office 231,200
4 Water room & wash room 130,000
7 Security cabin 41,750
8 Open land/Parking 102,600
CONSTRUCTION 2,050,000

45. TENTATIVE INCOME STATEMENT
Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year
INCOME:-
Cash Sales 6,320,000 8,848,000 10,996,800 11,881,600 13,904,000
Total Sales Income 6,320,000 8,848,000 10,364,800 11,881,600 13,904,000
Cost of Goods Sold 2,114,000 2,917,000 2,978,000 2,989,000 3,152,600
Gross Profit
4,206,000 5,931,000 7,386,800 8,892,600 10,751,400
(PBDIT)
GENRAL ADMISTRATION AND SELLING EXPENCE
Administration expense 2,916,000 2,916,000 2,916,000 2,916,000 2,916,000
PROMOTIONAL EXPENCE 1,325,000 1,325,000 1,325,000 1,325,000 1,325,000
LAND RENT EXPENCE 1,350,000 1,350,000 1,350,000 1,350,000 1,350,000
ELECTRICITY EXPENCE 189,600 168,000 172,500 158,000 198,500
WATER EXPENCE 8,700 6,600 7,200 6,000 9,200
Depreciation Expence 9,234,200 8,166,780 6,941,763 5,900,499 5,015,424
PBIT (1,549,000) 165,400 1,616,100 3,103,300 4,952,700
Interest
550,000 440,000 330,000 220,000 110,000
- Long Term Loan @ 11%
PBT (2,099,000) (274,600) 1,286,100 2,883,300 4,842,700
Tax Paid @ 30% (629,700) (82,380) 385,830 864,990 1,452,810
Net Income PAT (1,469,300) (192,220) 900,270 2,018,310 3,389,890

46. Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year
RETURN -14.69% (0.02) 9.00% 20.18% 33.90%
-20.00%
-10.00%
0.00%
10.00%
20.00%
30.00%
40.00%
1 2 3 4 5
AxisTitle
RETURN
RETURN