4. • To Provide best and easy way of learning
To attain and retain the position of being a ‘Market
Leader’.
To bring new technological breakthroughs in the field
of education and learning.
Focus on the Long term growth and Stability.
Aims to provide the best quality, effective delivery and
personal service to the customers.
Achieve the maximum monetary goals at minimum
cost.
5. • The company's office is located in Delhi at 204-model town
1, New Delhi. The land is of 3200 sq. feet in which:
• 1. 400 sq. feet will be given to each of the owner in total
2000 sq. feet.
• 2. 800 sq. feet will be used for the assembling of the
product and storage as well.
• 3. 400 sq. feet will be used for other day-to-day working
purposes.
• The office will be taken on rent and the rent will be divided
equally for each member.
• Centrally located in India which will help in capturing
diverse market.
6. • The dictionary pen, making learning simple,
easy and portable!! All in one pen....
• The company is engaged in assembling the
parts of dictionary pen, which will be
imported, from china.
• The selling of the product will be done by
Zero level of channel of distribution using
direct distribution channels to make it reach
to the end user.
7. This dictionary pen will provide customers many services and features:
• Mp3 playback
• Textbook listening
• USB connections
• charging
• Auxiliary port
• Screen on it for spell check.
• MIC that can catch the voice
• Six levels volume adjustment.
• Low battery alerts.
• Large built-in flash memory-
By this dictionary pen the customers get free access for any site for reading e-
books or listening audio books online anywhere in the country. For finding any
meaning of the word the person has to just roll the point of the pen on the
word and it recognizes the word in less than 3 seconds and tells you the
meaning of it. It already contains mainly all the audio textbooks and its new
updates will be available in market every month for new audio books and
words. This would be free for our registered customers.
8.
9. Market Segmentation
• As per the information provided by RTI, the growth rate of basic middle
basic schools is increasing by 5.38%, high basic schools is 1.66%, under
graduate students is 1.61% and university students is 0.45% which in
total of all the educational sectors is growing by 4.98%.
5.38%
1.66% 1.61%
0.45%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
middle basic schools high basic schools undergraduate students university studens
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10. Market Needs:
• Productive Learning
• · Innovative + enjoyable technology
• · Full development education
• · Interactive in social world
• · Enhancement for children
• · New and improved equipment for physically
challenged people
• · Mental and intellectual well being via
interactive model
17. Market analysis summary
• According to the 2011 estimates, literacy rate was recorded to be
around 74%, which will lead to a great market opportunity for the
product.
• Demand for IT sector products is growing tremendously from past 5
years at the rate of 10.3 % which is also witnessed worldwide, this
shows the need for these products in the market.
• Constant growth in educational sector with 1.2% according to CAGR
• Dictionary pen will also help the handicapped people to seek
knowledge
• Dictionary pen initially can cover a great market share, as no similar
product exists in the market.
18. Promotional Strategy:
Savvy Tech has also developed some promotional
strategies in order to attract customers. The strategies
are-
• Personal selling and door-to-door service
• Samples will be given in universities for 2-3
days
• Brochures and pamphlets will be distributed
in universities and other crowded places
20. • Information and the working of the product will be
shown on CNBC news channel in the show named tech
guru.
• Other promotional strategy, which will be used, is buzz
marketing, which will lead to viral marketing, which
will be free of cost. The product awareness will also
depend on word of mouth.
• 7. The information about the product will be provided
in magazines like chip magazine and T3, which are
gadget magazines. It will reach the people who are
technology and gadget freaks.
21. • The product will be priced using skimming pricing strategy as
the product is new to the market and has no direct
competition.
• The pricing of the product is based on technology and the
parts used in the pen to cover its expenses and to gain
companies profit.
• The pricing is also based on the primary research that how
much people are willing to pay for the product so the pricing
of the product is also done from the customer’s point of view.
• Discounts will be provided for the bulk order so that the
customers keep purchasing the product and be satisfied with
the company. Savvy tech. keeps customers as their first
preference
22. Sales Strategy
• Savvy tech. will deliver its products on order
basis.
• After sales service will be provided for the
customers for the technology up gradation or
any additional information to be fed in the
pen will be done by the technician.
25. Strength Weakness
• Many features in one device.
• Easy to operate.
• Positive product Quality image
• 24hrs service assistance.
• High quality product assurance.
• High price.
• Made in China.
• Low brand equity.
• Low brand image.
• Lower cost alternatives availability.
Opportunity Threats
• Increase in Literacy rate of more than
10%.
• Tremendous growth in IT sector and
related goods.
• Existence of huge market potential.
• To develop strong customer oriented
marketing net-work
• To develop Technology and product
development domestically.
• Increase in Import duties.
• Cheap copies of the product may be
produced.
• Domestic demand may not rise to the
extent of capacity expansion.
26. • MVL Industries
• CNBC news channel m
• Magazines like T3 and Chip which are
worldwide famous.
28. Learning
Word narrations
Language translations
Scanning
Audio & visual facility
Storing the data
Advanced & easy learning.
Portable
After sale services,
Updating information,
Home delivery, Home
assistance & Customer
feedback.
All age groups persuading
education.
Handicapped people
Universities & Colleges.
Amoi
Electronics &
MVL Industries
& LIC
Advertisement costs,
Transportation costs,
Assistance cost &
Advertisement costs.
Engineers
Technician
Personnel
Transportation
Manager
Direct Channel &
Social
networking sites.
Sales of the product
Up gradation revenue
Service revenue
Accessories
Extended warranty
29. Financial Assumptions
• The firm entered with the Chinese company is on the basis 5 year
contract on the renewal system.
• · There will no selling on credit basis for initial 3 years so as to cover
up the cost and to pay the investor highest amount of returns and
will be selling solely on cash basis which will also remove the
blockage of funds. These funds will be further used to increase the
capacity of importing the product and for advertisement
• · The projections for: tax rate i.e. 30 % according to the government
of India and depreciation for furniture at the rate of 10 % , vehicle
@ 10% and computer at the rate of 60 % will be changed with the
change in the rate in the market
•
30. Start up table
Total start up expenses :Rs 179,390
Total start up assets Rs 320,610
Investment : Rs 5,00,000
31. Year Principal Amount Return (26%)
1 3,45,00,000 90,00,000
2 3,58,50,000 93,21,000
3 3,20,00,000 83,20,000
Total
266421000
32. Gross Profit
• As we have used price skimming strategy which means that
we will keep the price high when introduced and gradually
decreases
0%
10%
20%
30%
40%
50%
60%
Year 1 Year 2 Year 3
60%
46%
55%
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36. Exit strategy
• The above financial data shows the caliber of
Savvy tech as a venture and the possibility of high
irresistibility to not to invest in such a profitable
business, If in any circumstances investor wants
to leave the company in the third financial year,
he will be provided with a sum of amount which
comprises of his initial investment which is of Rs
3,45,00,000 as his principal payment; which may
be abundantly available in the third year and the
total of return on investment i.e. of Rs
2,66,41,000.
37. • In future more features would be innovated in
the product like : video attachment, projector
lens and many more.
• As the demand of dictionary is increasing day by
day along with increasing competition we will be
bringing new innovations and updates for the
product regularly to keep it in the market.
• As the product will reach towards its success we
will be bringing new designs and shapes with
features to keep the product at the top level only.
Editor's Notes
Dictionary pen
Competitive Edge:
First Mover Advantage
Customer Relationship
Technological Breakthrough
All in One Innovation
, in the first two years the sales of the product will be high as it will be at the introduction and growth stage of the product lifecycle. At the growth stage it will have the highest sales, which will be around Rs.35000000 in the year 2014 according to the assumptions. In the first year of sales i.e. 2013 the approximate sales would be Rs.32000000. the sales will face a slight decline in the year 2015 as competitors may enter the market or technology may become outdated. Sales for the year 2015 will be Rs.31500000
Projection 2013-14
Profits after tax with the estimation of Rs 13,24,680
Projection 2014-15
Profit after Tax is Rs 25,04,810 , showing growth of 47 % from the previous year.
Projection 2015-16
Profit after tax for the third year would be Rs 29,34,879 which is showing 17 % growth of profit from the second year.
In the inaugural year the sale amounted to Rs. 3,20,00,000 through this sale the company will not get any such issues in paying off the expenses during the year and even purchasing the fixed assets. The net cash flow in the year 2013-14 amounted to Rs. 16,16,280. This was the net flow after meeting all the expenses and also spending on the fixed assets i.e. Rs. 10,56,000.
In the 2nd year higher unit sales helped the company for generating cash. As comparing from the previous year the cash flow amounting 16,16,280 increased to 53,85,350. The major reason for increase in cash flow is the sales and no investment on the fixed assets as it was spend earlier.
Now moving on to the 3rd year the cash flow increased by Rs. 20,09,345. In the previous year the sale was 3500 units and in the 3rd year also it’s the same but due to decrease in the cost of the product and reduce in the expenditures the net cash flow reached to Rs. 73,94,695.