Following was my Business Plan Made on the Concept of Flavored cigarettes for presentation at IIM Ahmedabad.

1. www.oldsmoke.com
Old Smoke
Your True Identity

2. 1) Vision
What is your big vision?
The vision is to change the way we smoke, and
Capturing 50 % of the premium cigarette market in India.

3. 2) Market
How big is the market size for your product/service (in Rs Crores)?
16.4Cr. Cigarette Smokers/3 = 5.466 Cr. Premium Smokers
5.466 Cr. * 2 Cigarette * Rs.7 = 76.524 Cr. / Day.
76.524 * 365 Days = 27931.26 Cr. / Year.
How fast is it growing (%)?
14 % annual growth rate.

4. 3) Customer
Who is your target customer?
Customers of 18-28 Years of age.
What problem are you solving for him/her?
Reduced chances of cancer with low nicotine consumption.
Less impact on lips.
Advanced fragrance.

5. 4) Product
Describe your product/service
Flavored and Mouth freshening Cigarettes
How will you make it?
Using Fresh tobacco, Recycled paper and Multilayered filters.
What are the alternatives to your product/service and how are you better?
Alternatives are Non-flavored cigarettes, Hukka’s and Cigars.
How we are better-
Easy availability
Economical
Flavor options
Fragrance

6. 5) Sales
How will you sell?
Direct retailing
Strong USP(Unique Selling Point)
Strong distribution channel
Where will you sell?
Every place catering to Smokers.(Local Squares, Streets, Bars, Pubs).

7. 6) Management Team
Role No of People Salary Month
Production 50 400,000 12
Packaging 20 200,000 12
Marketing 12 300,000 12

8. 7) Stage of Development
What are your future milestones?
Maximizing Sales, Cost Cutting, Brand Positioning.
What has been the progress till now (is it a concept, or prototype is ready)?
It’s a concept.
8) Revenue Model
What is your revenue model?
Average no of customers per month = 55 lakhs.
Average payment by a customer = Rs.14
Total Revenue = Rs. 7.7 Cr.

9. 9) Product Road Map
Year 1 Year 2 Year 3 Year 4 Year 5
Product 1
Product 2
Product 3
Premium Cigarette
Low Nicotine Cigarette
No Nicotine Cigarette

10. 10) Competition
Who is your existing & likely competition?
Gold Flake
Black
Classic
What are their strengths/weaknesses?
Strengths- First mover advantage, Market Goodwill, Economical.
Weaknesses- No Flavor, Traditional filters, No fragrance,.
Why are you different?
Different Flavors, Refreshing taste, Advanced Filters, Fragrance.

11. 11) Fund Raising Plans
How much money are you raising and at what valuation?
Initial startup cost = 1.5 Crore Rs.
What will the money be spent on?
Production Unit
Raw Materials
Packaging & Labeling
Salary & Wages
Other Expenses
How long will it last?
It will last for around 12 months.

12. Financial Plan TemplateProfit & Loss April May June July August September October Novembr December January February March
Revenues
No of Units Sold
1
Lakhs
1.5
Lakhs
3
Lakhs
5
Lakhs
8
Lakhs
12
Lakhs
15
Lakhs
20
Lakhs
25
Lakhs
32
Lakhs
40
Lakhs
50
Lakhs
Price per unit 7 Rs. 7 Rs. 7 Rs. 7 Rs. 7 Rs. 7 Rs. 7 Rs. 7 Rs. 7 Rs. 7 Rs. 7 Rs. 7 Rs.
Total Revenues
7
lakhs
10.5
Lakhs
21
Lakhs 35 Lakhs 56 Lakhs
84
Lakhs
1.04
Crore
1.4
Crore
1.75
Crore
2.24
Crore
2.8
Crore
3.5
Crore
Variable Expenses
No of Units
1
Lakhs
1.5
Lakhs
3
Lakhs 5 Lakhs
8
Lakhs
12
Lakhs
15
Lakhs
20
Lakhs
25
Lakhs
32
Lakhs
40
Lakhs
50
Lakhs
Variable Cost per Unit 3.5Rs. 3.5Rs. 3.5Rs. 3.5Rs. 3.5Rs. 3.5Rs. 3Rs. 3Rs. 3Rs. 3Rs. 3Rs. 3Rs.
Total Variable Cost
3.5
Lakhs
5.25
Lakhs
10.5
Lakhs
17.5
Lakhs
28
Lakhs
42
Lakhs
45
Lakhs
60
Lakhs
75
Lakhs
96
Lakhs
1.2
Crore
1.5
Crore
Fixed Expenses
Manpower
4
Lakhs
4
Lakhs
5
Lakhs
6
Lakhs
7
Lakhs
8
Lakhs
10
Lakhs
14
Lakhs
15
Lakhs
16
Lakhs
18
Lakhs
20
Lakhs
Marketing
2
Lakhs
2
Lakhs
2.5
Lakhs
2.5
Lakhs 3Lakhs
3
Lakhs
3
Lakhs
4
Lakhs
4
Lakhs
6
Lakhs
7
Lakhs
8
Lakhs
Travel 5000 Rs. 5000 Rs. 5000Rs 6000Rs 6000Rs 7000Rs 7000Rs 8000Rs 10000Rs 12000Rs 12000Rs 15000Rs
Telephone 1000Rs. 1000Rs. 1000Rs 1200Rs 1300Rs 1400Rs 1500Rs 1700Rs 2000Rs 2200Rs 2500Rs 3000Rs
Rent 20000Rs 20000Rs 20000Rs 20000Rs 20000Rs 20000Rs 20000Rs 30000Rs 30000Rs 30000Rs 30000Rs 30000Rs
Capital Costs 80 Lakhs 0 0 0 0 0 0 0 0 0 0 0
Miscellaneous 5000Rs 5000Rs 5000Rs 5000Rs 5000Rs 5000Rs 5000Rs 8000Rs 8000Rs 8000Rs 8000Rs 8000Rs
Total Expenses
86.31
Lakhs
6.31
Lakhs
7.81
Lakhs
8.822
Lakhs
10.323
Lakhs
11.334
Lakhs
13.335
Lakhs
18.477
Lakhs
19.5
Lakhs
22.524
Lakhs
25.535
Lakhs
28.56
Lakhs
Profit Before Tax
-79.31
Lakhs
-75.12
Lakhs
-61.93
Lakhs
-35.752
Lakhs
-9.925
Lakhs
62.741
Lakhs
1.5406
Crores
2.7558
Crores
4.3108
Crores
6.8856
Crores
9.0342
Crores
12.2486
Crores
Tax @ 30% 0 0 0 0 0
18.82
Lakhs
46.218
Lakhs
82.674
Lakhs
1.2932
Crores
2.0656
Crores
2.7102
Crores
3.6745
Crores
Profit After Tax
-79.31
Lakhs
-75.12
Lakhs
-61.93
Lakhs
-35.752
Lakhs
-9.925
Lakhs
43.921
Lakhs 1.0784
Crores
1.9290
Crores
3.0176
Crores
4.82
Crores
6.3240
Crores
8.5741
Crores