8/2/2019 Papper Bags - Hard Copy

1/19

PAPER BAGS

8/2/2019 Papper Bags - Hard Copy

2/19

Project on entrepreneurship

SUBMITTED BY PG sem-2RISHABH CHHEDA 06

SANYOGEETA CHORE 07

PRATIK JAMSANDEKAR 14

HEENA KOTHARI 16

SHRUTI PAI 21

RACHANA PATEL 24

RIDDHI UDANI 40

MOHD ALI SHAH 45

SUBMITTED TOPROF.K S IYENGAR

YEAR 2011-2013

GURU NANAK INSTITUTE OFMANAGEMENT STUDIES

8/2/2019 Papper Bags - Hard Copy

3/19

NAME OF THE OWNERS

1.RISHABH CHHEDA.

2.SANYOGEETA CHORE.

3.PRATIK JAMSANDEKAR.

4.HEENA KOTHARI.

5.SHRUTI PAI.

6.RACHANA PATEL.

7.RIDDHI UDANI.

8.MOHD ALI SHAH.

NAME OF THE BUSINESS VENTURE

ECO FASHION BAGS

BUSINESS LOCATION:- MATUNGA,SION,DADAR,WADALA.

WHAT PRODUCT TO SELL:- PAPER BAGS.

PURPOSE OF THE PLAN:-

ECO FRIENDLY AND RECYCLABLE. INCREASE AWARENESS OF HAZARD OF PLASTIC. CURRENT TREND.

8/2/2019 Papper Bags - Hard Copy

4/19

STATEMENT OF PURPOSE

Amount of loan required: - No Loan required

Amount of money you are putting in: - we are putting

The loan periodfor how many years you require the loan amount for: - Nil

The impact of the loan and the purpose it will have on your business: - Nil

The collateral that will be used to support the loan: - Nil

OVERVIEW OF INDUSTRY(WHY PAPER BAGS)

Retailers currently have a finite branding opportunity to position themselves as forward thinking,

environmentally aware businesses by switching away from plastic carrier bags.

With rapidly increasing consumer awareness of the problems of waste, landfill and the

environmental impact of plastic bags, these issues are high on the media agenda and consumers

minds.

There is an increasing likelihood that the government will introduce legislation to curb plastic

bag use. Now is the time to switch your business to eco-friendly alternatives voluntarily, to enjoythe significant marketing benefit that this currently confers.

8/2/2019 Papper Bags - Hard Copy

5/19

COMPANY DESCRIPTION

ECO FASHION BAGS is a new company that will deal in the business of PAPER BAGS.It will

be a partnership, owned and operated by Rishabh Chheda,Sanyogeeta Chore,Pratik

Jamsandekar,Heena Kothari,Shruti Pai,Rachana Patel,Riddhi Udani,Mohd Ali Shah.

ECO FASHION BAGS offers an extensive range of PAPER BAGS.We purchase all of our raw

materials from Crawford market(old Mumbai). We offer newspaper bags, bags for occasions like

weddings,birthdays and for kitty parties.

ECO FASHION BAGS will target retailers,medical shops,vendors,gift shops and even for

weddings and birthdays. After achieving break even and achieving a reasonable profit we plan to

expand and make tie ups with self help groups thereby providing employment.

The prospects ofmaking money from selling handbags made out of used newspapers may not

seem promising at first, but this can be a very profitable business if handled in the right

way. There are two factors that work in favor of this business:

1. Increasing environmental awareness makes it a very viable and marketable product. Aspaper is eco-friendly, it is going to take over polythene as the leading material for

production of user-friendly and durable bags.2. Newsprint is available in abundance. In fact, one of the largest amount of recyclable

waste available is in the form of newsprint; therefore, there is no shortage of the raw

material. Furthermore, the cost of production of these bags is very less which also meansthat it can be sold at affordable prices (thus making it a very marketable product).

3. Inventory risks are low, especially if there is abundant space available to keep them in aclosed environment, away from rain, moisture and humidity.

4. Many cities have started banning polythene bags; this provides an opportunity for paperbags to increase their market share

http://www.xmakemoney.com/http://www.xmakemoney.com/

8/2/2019 Papper Bags - Hard Copy

6/19

The PRIMARY OBJECTIVES ofECO FASHION BAGS over the next year are to:

Develop a strong client base.

Keeping overhead costs to a minimum.

Expand business operations.

MARKET ANALYSIS

Market research was done at different levels , taking into consideration different types of sample.

The different samples considered were:-

Medical shops Vendors Grocery shops Occasion bags ( Birthday, Weddings, Kitty parties)

The findings of this research are shown in the form of Graphical Representation as below.

8/2/2019 Papper Bags - Hard Copy

7/19

SEGMENTATION

GEOGRAPHIC SEGMENTATION

We have targeted Matunga, Sion, Wadala and Dadar because retail outlets are available on a

large scale in these prime areas. Availability of medical shops near Sion hospital area makes a

good location for business.

PSYCOGRAPHIC SEGMENTATION

Our Target customers are Medical shops, Retail outlets , Vendors. Vendors can give us a good

business as women daily go to market area to buy vegetables. As, medical shops are near

hospital area huge number of consumers enter medical shops. Usage of paper bags will be more

convenient for environment, and specially near hospital areas. We have targeted mainly those

places where consumers enter shops for their basic needs.

DEMOGRAPHIC SEGMENTATION

Our product mainly targets shops where consumers enter the most for their basic needs. There is

no age specification for the product. It is for all income level people.

sales of plastic

bag

58%

sales of news

paper bags

42%

Sales

8/2/2019 Papper Bags - Hard Copy

8/19

TARGETING

Medical shops Vendors Grocery shops Occasion bags ( Birthday, Weddings, Kitty parties)

POSITIONING

Positioning of our product is we make paper bags out of recycled papers. It is eco-friendly, it

does not harm the environment as the paper can be recycled. It is prepared from waste and we

give out our best.

SWOT

Strength:

Low cost with high quality. Dedicated & punctual staff. On time delivery.

Favorable access to distribution networks.

Weaknesses:

Entry. Inexperience. High cost structure. Limited area of operation. Not able to enjoy economy of scale.

Opportunities:

Scope of export. Large market. Changing of lifestyle/fashion.

8/2/2019 Papper Bags - Hard Copy

9/19

Environmental conscious customer.Threats:

Large number of competitors. Threats of substitute product. Highly sensitive & volatile market. New regulation.

Q) How would you attract customers?

A) The best way to attract customers is to provide them with various offers. Like purchase 100bags and get half a dozen bags free. Or, buy 200 bags and get a choice of your name printed on

the bag.

Q) Why should your customer agree to pay you the price that you

are demanding?

A) As, paper bags are considered to be the most eco friendly, we are making it a point that they

are available and affordable for everyone. We have set our pricing strategies in such a way thateven a local vendor can afford the paper bags and it is for all income level. And along with

affordability we are even offering excellent quality and durability at such a low price.

Q) Why did u arrive at this price?

A)Paper bags are quite economical and in order to adapt the habit of using the paper bagsinstead of plastic bags we have come up with an economical price which falls in the range of Rs

2.50 to 8 per bag so that from the vendors to the big retailers can afford paper bags for their

customers.

Q) What special advertisement you will be offering to your

customers?

Word of mouth Door to door selling

8/2/2019 Papper Bags - Hard Copy

10/19

Placing stalls at exhibitions and outside collegesLOCATION

Convenience: - As we have college in Matunga we prefer nearby location for selling theof cards. Initially, to ensure a good hold over our business, we have selected the business

location to be at areas nearby to Matunga.

Cost: - Rent of the stall at Exhibitions is to be paid. Moreover, costs incurred forraw material will be taken into consideration.

Safety: - No damages in the bags, as prepared with thick material. Transportation :- Transportation cost will be a bit high.

HOW TO REACH THE CUSTOMERS

With increasing awareness and go-green campaigns undertaken by many corporates, recyclinghas become a viable & popular option.Once the paper bags are being produced on a regular

basis, we can approach small shops, the local departmental store, the hardware items sellers for

buying our product. We can also sell the handbags to customers through our local vendors(departmental stores, stationery shops, gift shops, etc.). If the business is doing really well, we

can sell the bags from a commercial place (shop), sell it from home or deliver on order through

the internet. We will use the eco-friendly campaign to drive sales and create a brand name forour venture. Ultimately with the right campaign and branding campaign, we can make many

times the profit, starting with very less investment.

8/2/2019 Papper Bags - Hard Copy

11/19

DESCRIPTION OF THE PRODUCT

One thing to note here is that the paper bags are not recycled in the classical sense, that is, they

are not grounded, made into a paste and then fed to machines which create paper bags or reams

of paper out of them. Rather they are just folded in to specific patterns and sizes and then the

edges are pasted to create simple paper bags.We are providing a varying gamut of paper bagswhich is long lasting and highly durable.These bags are light in weight and spacious. The bags

are designed in such a manner, so as to carry a reasonable amount of weight. Our products are

available at competitive price in the market.

1.NEWSPAPER BAGS

Recycled English language newspaper. White sheet lining for extra strength.

2.HANDMADE COTTON PAPER BAGS

Luxury, thick and textured paper.3.RECYCLED MILL-MADE PAPER BAGS

Reinforced eyelets. Cardboard base. Choice of handle types.

DESCRIPTION OF THE VENTURE

COMPANY VISION-

To provide impeccable quality products and to make our company the most valuable andprofitable company.

To provide best out of waste.

http://www.thealternativebagcompany.com/wp-content/uploads/2010/06/DSC_24891.jpghttp://www.thealternativebagcompany.com/wp-content/uploads/2010/06/Logo-Printed-Recycled-Paper-Bag.jpghttp://www.google.co.in/imgres?imgurl=http://blog.craftzine.com/moogsmumrecycledgiftbag.jpg&imgrefurl=http://blog.craftzine.com/archive/2008/12/how_to_recycled_newspaper_gift.html&usg=__k3YwzW9eLGqR0uLR37uGkuiyp1o=&h=350&w=296&sz=44&hl=en&start=8&zoom=1&tbnid=skCcLgqHoeWEDM:&tbnh=120&tbnw=101&ei=EBItT4mzFoTxrQfL1oHDDA&prev=/search?q=newspaper+bags&hl=en&gbv=2&tbm=isch&itbs=1http://www.thealternativebagcompany.com/wp-content/uploads/2010/06/DSC_24891.jpghttp://www.thealternativebagcompany.com/wp-content/uploads/2010/06/Logo-Printed-Recycled-Paper-Bag.jpghttp://www.google.co.in/imgres?imgurl=http://blog.craftzine.com/moogsmumrecycledgiftbag.jpg&imgrefurl=http://blog.craftzine.com/archive/2008/12/how_to_recycled_newspaper_gift.html&usg=__k3YwzW9eLGqR0uLR37uGkuiyp1o=&h=350&w=296&sz=44&hl=en&start=8&zoom=1&tbnid=skCcLgqHoeWEDM:&tbnh=120&tbnw=101&ei=EBItT4mzFoTxrQfL1oHDDA&prev=/search?q=newspaper+bags&hl=en&gbv=2&tbm=isch&itbs=1http://www.thealternativebagcompany.com/wp-content/uploads/2010/06/DSC_24891.jpghttp://www.thealternativebagcompany.com/wp-content/uploads/2010/06/Logo-Printed-Recycled-Paper-Bag.jpghttp://www.google.co.in/imgres?imgurl=http://blog.craftzine.com/moogsmumrecycledgiftbag.jpg&imgrefurl=http://blog.craftzine.com/archive/2008/12/how_to_recycled_newspaper_gift.html&usg=__k3YwzW9eLGqR0uLR37uGkuiyp1o=&h=350&w=296&sz=44&hl=en&start=8&zoom=1&tbnid=skCcLgqHoeWEDM:&tbnh=120&tbnw=101&ei=EBItT4mzFoTxrQfL1oHDDA&prev=/search?q=newspaper+bags&hl=en&gbv=2&tbm=isch&itbs=1

8/2/2019 Papper Bags - Hard Copy

12/19

MISSION STATEMENT-

3RS -Reduce,Reuse,Recycle and to contribute to the society in a ecofriendly manner.PRICING STRATEGY

We have adopted penetration pricing strategy in which the price of our product is verylow and through this we will try to capture more market and customers.

Our product is priced as follows-1.Big newspaper bags Rs 3.

2.Small newspaper bags Rs 2.5.

3.Fancy paper bags Rs 8.

8/2/2019 Papper Bags - Hard Copy

13/19

FINANCIAL DATA

Estimated Cost sheet of Eco Fashion Bags as on 31/3/2013

Particulars Small size Big size Fancy Bags Total

Direct materials

Paper

Glue

1600

800

800

400

1600

800

4000

2000

Direct Expense

(Including

Packaging)

800 400 800 2000

WORKS COSTAdministrative

Overheads

Electricity

3200

400

1600

200

3200

400

8000

1000

COST OF

PRODUCTION

Selling

Overheads

Travelling

expense of

salesperson

3600

400

1800

200

3600

400 1000

TOTAL COST

PROFIT

4000

800

2000

400

4000

800

10000

2000

TOTAL

SALES

4800 2400 4800 12000

8/2/2019 Papper Bags - Hard Copy

14/19

Estimated Cost Sheet of Eco Fashion Bags as on 31/3/2014

Particulars Small size Big size Fancy Bags Total

Direct materials

PaperGlue 22951147 1410706 22951147 60003000

Direct Expense

(Including

Packaging)

1147 706 1147 3000

WORKS COST

Administrative

Overheads

Electricity

4589

574

2822

352

4589

574

12000

1500

COST OF

PRODUCTIONSelling

Overheads

Travelling

expense of

salesperson

5163

765

3174

470

5163

765

13500

2000

TOTAL COST

PROFIT

5928

1261

3644

778

5928

1261

15500

3300

TOTAL

SALES

7189 4422 7189 18800

8/2/2019 Papper Bags - Hard Copy

15/19

Estimated Cost Sheet of Eco Fashion Bags as on 31/03/2015

Particulars Small size Big size Fancy Bags Total

Direct materials

PaperGlue 33751313 2250874 33751313 90003500

Direct Expense

(Including

Packaging)

1312 876 1312 3500

WORKS COST

Administrative

Overheads

Electricity

6000

750

4000

500

6000

750

16000

2000

COST OF

PRODUCTIONSelling

Overheads

Travelling

expense of

salesperson

6750

750

4500

500

6750

750

18000

2000

TOTAL COST

PROFIT

7500

1781

5000

1188

7500

1781

20000

4750

TOTAL

SALES

9281 6188 9281 24750

8/2/2019 Papper Bags - Hard Copy

16/19

Estimated Balance Sheet for 3 years

Particulars 31/03/2013 31/03/2014 31/03/2014

LiabilitiesCapital

P/L

Creditors

10000

2000

4000

10000

3300

6000

10000

4750

8000

Total Liabilities 16000 19300 22750

Assets

Fixed Assets

(-) 10% Depreciation

8000

--

8000

(800)

7200

(800)

Total Fixed Assets

DebtorsCash

8000

60002000

7200

94002700

6400

123753975

Total Assets 16000 19300 22750

8/2/2019 Papper Bags - Hard Copy

17/19

MANAGEMENT

BUSINESS BACKGROUND

We have chosen this business as we want to spread awareness regarding the use of eco friendly products.

Our goal is to reduce the use of plastic bags which causes environmental hazards andpromote the use of paper bags

MANAGEMENT SKILLS

We have with us the best people for taking care of the finances of the business. Thus giving us a clear view of how much is the exact loss or profit gained. This in return will help us to know our companys progress. We have effective marketing skills which will help us to advertise and sell our product. We have good communication skills which will help us to know our customers better. Our selling skills as well as negotiating skills will benefit us for marketing our product.

QUALITIES OF OUR TEAM

Team spirit, goal oriented, optimistic, clear vision, communication skills, convincing power, self

motivated.

MANAGERIAL TEAM

NAME: RISHABH CHHEDA

QUALIFICATION: B.COM

DUTIES ASSIGNED: FINANCE AND SELLING AND DISTRIBUTION

NAME: SANYOGEETA CHORE

QUALIFICATION: B.COM

DUTIES ASSIGNED: PREPARATION,SELLING AND DISTRIBUTION

NAME: PRATIK JAMSANDEKAR

QUALIFICATION: B.M.S

DUTIES ASSIGNED: PREPARATION AND SELLING

8/2/2019 Papper Bags - Hard Copy

18/19

NAME: HEENA KOTHARI

QUALIFICATION: BAF

DUTIES ASSIGNED: FINANCE AND PREPARATION

NAME: SHRUTI PAI

QUALIFICATION: B.COM

DUTIES ASSIGNED: PREPARATION,SELLING AND MAINTAINENCE

NAME: RACHNA PATEL

QUALIFICATION: BBI

DUTIES ASSIGNED: PREPARATION,SELLING AND MAINTAINENCE

NAME: RIDDHI UDANI

QUALIFICATION: B.COM

DUTIES ASSIGNED: PREPARATION AND SELLING AND DISTRIBUTION

NAME: MOHD. ALI SHAH

QUALIFICATION: B.SC (PHYSICS)

DUTIES ASSIGNED: SELLING AND DISTRIBUTION

8/2/2019 Papper Bags - Hard Copy

19/19