 Name of the Firm : Voguish
 Project : Jacket manufacturing
 Location : Bijapur
 Type of Organization : Partnership
 Name of Partners : Priyanka Jahagirdar
Ankit Porwal
Market segmentation
Geographic segmentation
Demographic segmentation
Target market
Product Positioning
This is an innovative product with no competitors. Hence we are positioning our
product as a high quality product with ‘more for more’ positioning strategy.
 
Product
Features
Jacket with a good look
Keeps human body cool in summer and warm during winter season
It has a small electronic gadget in it to adjust the temperature which works on
batteries
Price
We have adopted skimming pricing strategy to skim the market and to recover the
investment made in research and development for the product.
 
Promotion
Advertisements in local channels of target cities.
Advertisements in local news paper of target cities.
Bill boards and hoardings in target cities.
Ads in magazines of Karnataka.
 
Place
Direct marketing
Strengths
Availability of Low Cost and Skilled Manpower provides competitive advantage to
industry
Growing Economy and Potential Domestic and International Market.
Innovative product
 
Weakness
Lack of Technological Development that affect the productivity
Lacking to generate Economies of Scale.
 
Opportunities
Large, Potential Domestic and International Market.
Greater Investment and FDI opportunities are available.
 
Threats
International labor and Environmental Laws.
To balance the demand and supply
 During summer and winter due to excessive heat and cold the productivity
of people is reduced. By wearing our jacket the productivity people is
maintained which in turn results in increasing performance of the
companies and growth in profits.
 This results in increasing revenue to the government by way of taxes which
is used for the welfare and promotion of the society.
 And also when companies earn good profits they perform their corporate
social responsibilities in a better way
 The jacket is also helpful as there are frequent power cuts.
Total cost of the Project:
S.No Particulars Total Value
1 Fixed Capital
i.Land & Building
ii.Machineries
15,00,000
13,20,000
2 Working Capital 10,00,000
3 Preliminary & Pre-Operative
Expenses
1,05,00,000
Total Value 1,43,20,000
S.No Particulars Amount
1 Own Investment (each
Partner 40,00,000)
80,00,000
2 Bank Loan 40,00,000
3 Loan from friend 30,00,000
Total Value 1,50,00,000
Particulars Amount(in ‘00)
Per unit For 10,000
units
Direct material 10 1,00,000
Direct labour 0.936 9,360
Prime cost 10.936 1,09,360
Add Factory Overhead 1 10,000
Works cost 11.936 1,19,360
Add Administrative Overhead 5.064 50,640
Cost of production 16.00 1,60,000
Add Selling and Distribution Overhead 0.75 7,500
Cost of product 16.75 1,67,500
Profit (40%) 11.25 11,250
Selling Price 28.00 2,80,000
Particulars Amount(’000) Particulars Amount(’000)
To Purchases 10,000 By Sales 26,600
Manufacturing
expenses
1,000 Closing stock 1,400
Wages 936
Gross profit c/d 16,064
Rs 28,000 Rs 28,000
To Salary 864 Gross profit b/d 16,064
Carriage outwards 30
Advertisement 120
Travelling exp. 70
Commission
on sales
50
Printing and stationery 20
Postage and telegram 30
Audit fees 10
To Dep. On
Land and builbing
Machineries
75
66
Prelimnary exp. Written off 525
Interest on bank
loan
480
To net profit c/d 13,724
Rs 16,064 Rs 16,064
FINANCIAL STATEMENTS
Trading and Profit and loss account
Dr For the year ending 31st
march 2012 Cr
Liabilities Amount
(’000)
Assets Amount
(‘000)
Capital 8000
Add net profit 13,724
21,724 Land and building 1500
Less dep. 75 1,425
Creditors 100 Machinery 1,320
Less dep. 66 1,254
Goodwill 200
Furniture 500
Debtors 2,000
Bills receivable 1,250
Investment 1,000
Stock 1,400
Prelimnary exp. 10,500
Less written off 525 9,975
Cash in hand 700
Cash at bank 2,120
Rs 21,824 Rs 21,824
Balance Sheet
As on 31st
march 2012
Particulars Amount(’000) Particulars Amount(’000)
To Opening stock 1,400 By Sales 31,920
To Purchases 13,000 Closing stock 2,800
Manufacturing
expenses
1,300
Wages 1,220
Gross profit c/d 17,800
Rs 34,720 Rs 34,720
To Salary 1124 Gross profit b/d 17,800
Carriage outwards 50 Interest on
investment
100
Advertisement 150
Travelling exp. 90
Commission
on sales
70
Printing and stationery 40
Postage and telegram 30
Audit fees 10
To Dep. On
Land and builbing
Machineries
Furniture
75
66
50
Prelimnary exp. Written
off
1,195
To net profit c/d 14,950
Rs 17,900 Rs 17,900
Trading and Profit and loss account
Dr For the year ending 31st
march 2013 Cr
Liabilities Amount
(’000)
Assets Amount
(‘000)
Capital 8000
Add net profit 14950
22,950 Land and building 1,425
Less dep. 75 1,350
Creditors 1350 Machinery 1,254
Less dep. 66 1,188
Goodwill 300
Furniture 500
Less dep. 50 450
Debtors 3,500
Bills receivable 1,912
Investment 1,000
Stock 2,800
Prelimnary exp. 9,975
Less written off 1,195 8,780
Cash in hand 800
Cash at bank 2,220
Rs 24,300 Rs 24,300
Balance Sheet
As on 31st
march 2013
Innovative product

Innovative product

  • 2.
     Name ofthe Firm : Voguish  Project : Jacket manufacturing  Location : Bijapur  Type of Organization : Partnership  Name of Partners : Priyanka Jahagirdar Ankit Porwal
  • 3.
    Market segmentation Geographic segmentation Demographicsegmentation Target market Product Positioning This is an innovative product with no competitors. Hence we are positioning our product as a high quality product with ‘more for more’ positioning strategy.  
  • 4.
    Product Features Jacket with agood look Keeps human body cool in summer and warm during winter season It has a small electronic gadget in it to adjust the temperature which works on batteries Price We have adopted skimming pricing strategy to skim the market and to recover the investment made in research and development for the product.   Promotion Advertisements in local channels of target cities. Advertisements in local news paper of target cities. Bill boards and hoardings in target cities. Ads in magazines of Karnataka.   Place Direct marketing
  • 5.
    Strengths Availability of LowCost and Skilled Manpower provides competitive advantage to industry Growing Economy and Potential Domestic and International Market. Innovative product   Weakness Lack of Technological Development that affect the productivity Lacking to generate Economies of Scale.   Opportunities Large, Potential Domestic and International Market. Greater Investment and FDI opportunities are available.   Threats International labor and Environmental Laws. To balance the demand and supply
  • 6.
     During summerand winter due to excessive heat and cold the productivity of people is reduced. By wearing our jacket the productivity people is maintained which in turn results in increasing performance of the companies and growth in profits.  This results in increasing revenue to the government by way of taxes which is used for the welfare and promotion of the society.  And also when companies earn good profits they perform their corporate social responsibilities in a better way  The jacket is also helpful as there are frequent power cuts.
  • 7.
    Total cost ofthe Project: S.No Particulars Total Value 1 Fixed Capital i.Land & Building ii.Machineries 15,00,000 13,20,000 2 Working Capital 10,00,000 3 Preliminary & Pre-Operative Expenses 1,05,00,000 Total Value 1,43,20,000
  • 8.
    S.No Particulars Amount 1Own Investment (each Partner 40,00,000) 80,00,000 2 Bank Loan 40,00,000 3 Loan from friend 30,00,000 Total Value 1,50,00,000
  • 9.
    Particulars Amount(in ‘00) Perunit For 10,000 units Direct material 10 1,00,000 Direct labour 0.936 9,360 Prime cost 10.936 1,09,360 Add Factory Overhead 1 10,000 Works cost 11.936 1,19,360 Add Administrative Overhead 5.064 50,640 Cost of production 16.00 1,60,000 Add Selling and Distribution Overhead 0.75 7,500 Cost of product 16.75 1,67,500 Profit (40%) 11.25 11,250 Selling Price 28.00 2,80,000
  • 10.
    Particulars Amount(’000) ParticularsAmount(’000) To Purchases 10,000 By Sales 26,600 Manufacturing expenses 1,000 Closing stock 1,400 Wages 936 Gross profit c/d 16,064 Rs 28,000 Rs 28,000 To Salary 864 Gross profit b/d 16,064 Carriage outwards 30 Advertisement 120 Travelling exp. 70 Commission on sales 50 Printing and stationery 20 Postage and telegram 30 Audit fees 10 To Dep. On Land and builbing Machineries 75 66 Prelimnary exp. Written off 525 Interest on bank loan 480 To net profit c/d 13,724 Rs 16,064 Rs 16,064 FINANCIAL STATEMENTS Trading and Profit and loss account Dr For the year ending 31st march 2012 Cr
  • 11.
    Liabilities Amount (’000) Assets Amount (‘000) Capital8000 Add net profit 13,724 21,724 Land and building 1500 Less dep. 75 1,425 Creditors 100 Machinery 1,320 Less dep. 66 1,254 Goodwill 200 Furniture 500 Debtors 2,000 Bills receivable 1,250 Investment 1,000 Stock 1,400 Prelimnary exp. 10,500 Less written off 525 9,975 Cash in hand 700 Cash at bank 2,120 Rs 21,824 Rs 21,824 Balance Sheet As on 31st march 2012
  • 12.
    Particulars Amount(’000) ParticularsAmount(’000) To Opening stock 1,400 By Sales 31,920 To Purchases 13,000 Closing stock 2,800 Manufacturing expenses 1,300 Wages 1,220 Gross profit c/d 17,800 Rs 34,720 Rs 34,720 To Salary 1124 Gross profit b/d 17,800 Carriage outwards 50 Interest on investment 100 Advertisement 150 Travelling exp. 90 Commission on sales 70 Printing and stationery 40 Postage and telegram 30 Audit fees 10 To Dep. On Land and builbing Machineries Furniture 75 66 50 Prelimnary exp. Written off 1,195 To net profit c/d 14,950 Rs 17,900 Rs 17,900 Trading and Profit and loss account Dr For the year ending 31st march 2013 Cr
  • 13.
    Liabilities Amount (’000) Assets Amount (‘000) Capital8000 Add net profit 14950 22,950 Land and building 1,425 Less dep. 75 1,350 Creditors 1350 Machinery 1,254 Less dep. 66 1,188 Goodwill 300 Furniture 500 Less dep. 50 450 Debtors 3,500 Bills receivable 1,912 Investment 1,000 Stock 2,800 Prelimnary exp. 9,975 Less written off 1,195 8,780 Cash in hand 800 Cash at bank 2,220 Rs 24,300 Rs 24,300 Balance Sheet As on 31st march 2013