1

Mid-Term Project
“Entrepreneurship Business Plan”
The Cordonnier
(Design your shoes as you own the Company)

Prepare for

Mr. Ahmed Bilal

Mid-term Project

Prepared By

Bilal Durrani (Group)

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Acknowledgement:
At first, I would like to thank ALLAH Almighty who gave us this power and ability to preserve and
conduct this whole project. Indeed, without his blessings, one cannot think of this achievement.

I would also like to thank “Sir. Amir Ilyas & Sir. Ahmed Bilal” who played an important role in our
whole project they both are our inspiration, our role models they supported us with their guidance in
every aspect of the project. They provided us the opportunity to enhance our skills for that specific
purpose we were assigned with a project of entrepreneurship, Furthermore, I would like to thank my
team members who supported and helped me in this project they have a major role in completing the
whole research and getting new ideas to be more innovative.
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Dedication:
We dedicate this project to ALLAH ALMIGHTY who gave us the strength to complete this project
along with his blessings we cope-up with hurdles and completed this project, we would also like to
dedicate this project to our facilitators (our respected teachers), our inspirations “Sir. Ahmed Bilal &
Sir Amir Ilyas” they gave us the opportunity to prove our skills and to show our talent without them
we would never be able to recognize our true strength. At the end, the dedication of this project
belongs to our parents who always supported us in whatever the condition we are in, their
unconditional love makes us stronger to compete with our weaknesses and with their help, guidance,
and support we are at this position which we can never think to achieve without these people
mentioned above.
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Contents
Executive Summary: ...................................................................................................................................... 7
1.0 Business Description (Forms of Business): ............................................................................................ 8
1.1. Vision & Mission:............................................................................................................................. 11
1.2. Company Values:.............................................................................................................................. 11
1.3. Organization reporting structure: ...................................................................................................... 11
1.4. Goals:… ............................................................................................................................................ 13
1.5. Objective:.......................................................................................................................................... 13
2.0 Industry and Market Analysis: ............................................................................................................. 14
2.1. Industry size and structure: ............................................................................................................... 14
2.2. Porter’s five forces model:................................................................................................................ 15
2.3. Competitor Analysis: ........................................................................................................................ 16
2.4. SWOT Analysis: ............................................................................................................................... 18
2.5. Know your customer: ....................................................................................................................... 19
2.6. Unique Value Proposition: ............................................................................................................... 20
3.0 S.O.D Template: ..................................................................................................................................... 20
3.1. Channel Structure: ............................................................................................................................ 21
3.2. Generic Eight Flows: ........................................................................................................................ 22
4.0 Marketing Strategies: ............................................................................................................................ 23
4.1. Targeting:.......................................................................................................................................... 23
4.2. Marketing Mix: ................................................................................................................................. 24
Ansoff Model:.......................................................................................................................................... 25
4.3. Branding: .......................................................................................................................................... 26
5.0 Financial Plan ......................................................................................................................................... 27
5.1. Source of Funding: ........................................................................................................................... 27
5.2. Operating Cost and Expenses: .......................................................................................................... 27
5.3. Start-up Finance:............................................................................................................................... 29
5.4. Revenue Generation: ........................................................................................................................ 29
5.5. Depreciation & Fixed Assets: ........................................................................................................... 29
5.6. Income Statement: ............................................................................................................................ 30
5.7. Balance Sheet: .................................................................................................................................. 31
5.8. Break Even Analysis: ....................................................................................................................... 31
5.9. Ratio Analysis:.................................................................................................................................. 32
5.10. Per Unit Cost: ................................................................................................................................. 33
5.11. Operating Cash Flow: ..................................................................................................................... 33
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5.12. Capital Budgeting Technique: ........................................................................................................ 33

Table 1: Product and Services with price .....................................................................................................9

Table 2: Men Shoe Sizing Guide ..................................................................................................................10
Table 3: Organization Hierarchy.................................................................................................................12
Table 4: Porter Model ...................................................................................................................................15
Table 5: SWOT Analysis ..............................................................................................................................16
Table 6: SOD Template ................................................................................................................................20
Table 7: Customer Profile ............................................................................................................................23
Table 8: Ansoff Model...................................................................................................................................25
Table 9: Branding .........................................................................................................................................26
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Our team members are:

Group Members
SR# Student Name Roll No Designation Contact Number

1) Bilal Durrani BBHM-S16-028 Leader 0320-6878934

2) Muzamil BBHM-S16-025 Member

3) Zain Waqar BBHM-S16-012 Member 0324-4519295

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Executive Summary:
The Cordonnier is an upcoming shoe brand of Pakistan that aims to provide its customer with the
highest degree of satisfaction by making the shoes as per the demand and desire of the customer. The
team of Cordonnier has finally come up with a solution that would efface the need of going to
overcrowded markets just to get the desired pair of shoe and eventually ending up with buying shoes at
a very high price with least satisfaction. As the problem was identified people don’t want to go to over
crowded markets and buy shoes at very high prices.

We at Cordonnier are providing an online platform for our customers where they can design their own
shoe as they have imagined, our focus is to make majority part of shoe to customizable that would go
from selecting the material, size, shape, sole, toe cap, eyelet, vamp, lining, shoelace, shoe tongue etc.
There would be thousands of possibilities available when we let our customer be as much creative as
they can while designing their shoes. At initial stages we are offering low variety of shoes i.e dress
shows with different possibilities (oxford, monk, brogue )

Along with the product we are providing some particular services which include free home delivery
within 4-5 days (Lahore at initial stages), Home visit if our customer is finding it hard to design or if
they found some complexity in measurements(Home visit at initial stages are for some specific areas:
Bahria Town, DHA, Iqbal Town, Model Town, Cantonment, Societies at Mohlanwal Road till Bahria
town, Thokar – Raiwind (Bahria Orchard).

Well, what we are offering is the exceptional services there are many renowned brands in the market
who have their grips on market share but there are still numerous gaps in the apparel industry or
precisely in the Shoe industry. Few brands are there which gives what they promise and those who can
offer the products to customers according to their desire are located deep inside of Lahore in
overcrowded markets also they demand a high price for a shoe that can be available for the customer
in very less price as compared to those in crowded markets.

For that purpose, we are working with our best strategies including marketing, finance, and others. Our
people are hard workers and give their best while satisfying the customers and making the products.
Furthermore, the detail of our business is described in the head of the business description.
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1.0 Business Description (Forms of Business):

Pakistan a country which is considered as a fifth most populous country and according to a research
the economy of Pakistan is the 25th largest in the world in terms of purchasing power parity (PPP),
and 42nd largest in terms of nominal gross domestic product. People of Pakistan are much
conscious about their appearance in terms of apparel, with apparel industry comes to the footwear
industry as altogether fashion includes all sector. If we see the growth of the apparel industry during
2013-2017 its growth was about 6%. However, in Pakistan, the export of footwear specifically is
quite low to 0.001% even though the strength of footwear industry in Pakistan includes top quality
leather that means there’s much space to cover in the industry there’s medium to the high demand
of good quality footwear in Pakistan, but industry lacks to provide such products. With improving
condition of Pakistan buying the power of people is increasing and they tend to be more focused on
quality to satisfy their status in society.

Hence, we are targeting some audience and providing them the best quality of shoe which they will
design by themselves and the product would be delivered to their doorstep. There would be several
things that would play a crucial role in our project, for example, the website through which we will
connect with our customer should be designed in such a way that people can operate it easily. The
further description of our business is discussed below.

The Cordonnier a French word which means a shoemaker, we at Cordonnier is offering people to
design their shoes as they own the company, Cordonnier is based on Sole Proprietorship where
everything is in our customer's hand how they want their product to be designed. Basically, we are
offering a product along with services. So, the form of our business includes both product and
service based.

Cordonnier is based on Sole Proprietor which aims to provide its customer the best product within
their price range and with the freedom to design their own product and be creative while designing.
The product and service which we are providing along with their prices are as follows:
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Table 1: Product and Services with price

Product Price Range (Thousands)

1) Shoes 2000-4000

2) Service (Home Delivery, Designing Free

your own shoes)

At initial stages as we can’t take a huge risk, we are offering the products to our customer i.e only
dress shoes at initial stages than after the stability of our business, we would move towards
diversity and more variety option. So how our website, our platform works lies in the design of our
website. The customer who wants to design his shoes will visit our website then he will select the
size of his shoe there would be guide and matrix available to put and select the desired shoe size
(Table 2). Then he will select the shape of the shoe (Round, monk, Oxford etc.), after selecting the
shape the laces would be selected with shoe tongue similarly other customized available items
would be there where the customer would select according to his desire namely as (Eye lit, Sole,
Vamp, Toe Cap etc.). Each par selected can be of a different color as our customer wants. Next step
would include the review of product and price, the price would be then shown along with the
product if the satisfied customer would move to next phase the payment which is based on payment
on delivery or via credit/debit cards.

Within 4-5 days the product would be manufactured and delivered to our customer. The
manufacturing would include a designing machine where the basic model of shoe would be
designed, and all the other work would be hand-made. When the product is delivered to the
customer and if they are dissatisfied with the quality, the product they can return the product with a
money-back guarantee within 4 days. The material which we are using is leather, artificial leather
and plastic, and all the raw material is bought from local markets to minimize the cost as much as
possible also the material is bought in form of chunks.

In the case of finance, we are wholly working based on equity which means all the money is
owners’ money and there are no partners in the business (Sole proprietor) our initial investment of
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the business is around Rs 13 Lakh and 61 thousand with a payback period of 1 year and 5 months.
What we are expecting from this business is that it will provide us the 15% of Pakistan apparel
(shoe industry market share). We are targeting our customers based on classes i.e we are more
focused on a middle and upper class of Lahore (initially). According to a source, the middle-class
percentage in Lahore is around 28% and 2% is of the upper class while the total population is
around 11.03 million. Here we are assuming it as 10 million, so we are targeting 2800000 middle-
class people, and 200000 upper-class people in Lahore whereas we have mentioned some areas
where the home visit services would be available. In the end, we would be in the contacts of our
customers and would get feedback to check our progress.

Table 2: Men Shoe Sizing Guide

Men’s Shoe Sizing Guide

How long is your foot? Then your shoe size is:
inches Mm US EU Asia
8-5/8 221 4 36-37 22
8-7/8 225 4.5 36.5 22.5
9 229 5 37 23
9-1/4 233 5.5 37.5 23.5
9-3/8 238 6 38 24
9-1/2 242 6.5 38.5 24.5
9-5/8 246 7 39.5 25
9-7/8 250 7.5 40 25.5
10 255 8 41 26
10-1/4 259 8.5 42 26.5
10-3/8 263 9 42.5 27
10-1/2 267 9.5 43 27.5
10-5/8 272 10 43.5 28
10-7/8 276 10.5 44 28.5
11 280 11 44.5 29
11-1/4 284 11.5 45 29.5
11-3/8 288 12 45.5 30
11-1/2 293 12.5 46.5 30.5
11-5/8 297 13 47.5 31
11-7/8 301 13.5 48 31.5
12 305 14 48.5 32
12-1/4 310 14.5 49 32.5
12-3/8 314 15 49 32.5
12-5/8 323 16 50-51 34
13 332 17 51-52 35
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1.1. Vision & Mission:

Our Vision is to convert people to online shopping for shoes and to be the largest seller of
customers designed based shoes in Pakistan (Pakistan’s no.1 footwear brand with maximum
designing possibilities). Along with it, we want to provide our customers with the variety in huge
amount.

To fulfill our vision, we have set a specific mission to sell at-least 2000 pair of shoes per year.

1.2. Company Values:

We at Cordonnier has set some values which include:

 Users are always right

 Development Concept: Entrepreneurship and innovation spirits
 People

1.3. Organization reporting structure:

In our hierarchy they KPI’s are set as their roles and responsibility, those who are working
efficiently and effectively with respect to their role and responsibilities are ultimately achieving
success thus their roles and responsibilities indicate their performance indicators.

More concisely KPI of Finance manager is the effective and efficient use of resources and
availability of resources to the company on time, software engineer KPI includes the availability of
online platform to the customer. Product design manager KPI includes innovating shoe design and
manufacturing the product on time and lastly, sales manager kpi’s are to have an increase in annual
growth of 5% along with-it maximum sales and timely delivering of product to customers.

CEO (Bilal
Durrani)

Sales Finance Software Product Design

Manager Manager Engineer Manager
(Zain Waqar) (Muzamil) (Taha Shahid) (Mueed Javaid)

Sales
Team
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Table 3: Organization Hierarchy

Positions Tasks Responsibilities Timeline Status Follow-up

(November-
January)

C.E.O(Chief  Planning for  Responsible for Starting of  Completed  Completed

Executive launch leading launching
Officer)  Overseeing the  Making Strategies
rule and  Communicating
Bilal Durrani policies
decided in
planning
 Checking daily
operations of
all the process
for reliability

Software  Developing  Make sure availability Report on 20  In process  Will be delayed

Engineer websites of online platform to Nov, Dec, Jan for 3 days
 Making customers.
Outsource
software’s,  Report to CEO
Taha Shahid
applications
for
Cordonnier
Financial  Managing and  Risk planning Report till  Completed Completed
Manager planning  Finance handling November,20
finance for  Cash Management
Muzamil Launch and and record
sustainability maintaining
 Calculating  Responsible for
technical Technical Resources
resources  Reports to CEO

Sales&  Advertising  Advertising Report till  In process  On time

Marketing and promotion  Promotion November,20
Manager of Brand  Reports to CEO
 Timely
Zain Waqar delivering of
product to
customers
Product  Design  Responsible for Report till  In process  Not yet
&Design product, bring overseeing and November,20 completed
Manager innovation in managing rules of the
shoes and is organization
Outsource related to  Internal policies
Mueed Javaid manufacturing  Reports to CEO
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1.4. Goals:
We at Cordonnier have set some goals to achieve our vision which are as follows:

 Get a 15% market share in Pakistan within 2 years

 Annual growth of 5% in revenue
 Less Payback Period within 1 year
 Make Break-even point to 1000 units
 90% satisfied customers checked by feedback
 Increase variety up-to 30 different material options with design in 2 years

1.5. Objective:
Our objective in Cordonnier is to have strong and loyal relationships with our customers that would
be possible by giving the highest degree of satisfaction from our product. Also, our objective is to
become Pakistan’s no 1 footwear brand with maximum possibilities of combination in designing
the product.
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2.0 Industry and Market Analysis:

2.1. Industry size and structure:
Footwear industry in Pakistan has much more potential to grow but due to some issues the specific
industry hasn’t got that much importance Pakistan Footwear Manufacturing Association plays a
crucial role in the growth of this sector in Pakistan. Many factories in Pakistan have the capacity to
manufacture 2500 units per day and some goes for 10,000 pairs per day. The market is initially
captured by giants which enjoy all the market share. The share of domestic producers in the Pakistani
market is Rs150 billion out of which only 20 percent is produced by the documented sector.
The total requirement of footwear in Pakistan is around 600 million pairs per year (
https://www.thenews.com.pk/print/172321-Pakistan-has-far-to-go-in-footwear-industry).

If we specifically talk about the men shoes in Pakistan, there are several brands who have captured the
market but still, there’s much growth available in the industry that means there’s space for new
entrants to have huge profit margins. Shoes for men which are imported are Timberland, Adidas,
Levis, Nike and so many more whereas in Pakistan the footwear brands available for men includes
Markhor, Bata, Hush Puppies Modern Footwear, Corio Footwear, TSM&CO, Culzado, and Gomila.
These brands are enjoying huge profit margins in Pakistan as they are those potential brands which are
satisfying their customers to some extent despite the facts that the products available to men through
these brands are highly expensive a single customized pair of shoes would cost around 17 to 25
thousand rupees to an individual.

There is much need of a brand that would work with an ambition to satisfy its customers need but not
by hyping the price to maximum but by providing them the freedom to be as creative as they can and
design their shoe within minimum prices in the market, this would ultimately lead to more satisfied
customers than ever before. In a research, it is found that men usually buy less quantity of shoes per
year and if they are buying the shoe which is high in price but still doesn’t satisfy their need and
desire, it would be the loss for the whole industry not only for some specific brands.
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2.2. Porter’s five forces model:

In our business, as we are dealing in the apparel industry, it is important for us to analyze porter five
forces it is critical for our business success.

After conducting research on this model, we came to know that in our specific business case the
bargaining power of supplier is medium, bargaining power of customers is low, competitive rivalry is
medium, the threat of new entrants is high, and the threat of substitute product/ service is medium. The
detailed overview of the model (Table 4) is described below.

Table 4: Porter Model

Forces High Medium Low

Bargaining Power of 
Suppliers
Bargaining Power of 
Customers
Competitive rivalry 

The threat of new 

entrants
Threat of substitute 
products or services

 Bargaining Power of Suppliers:

In our case Cordonnier bargaining power of suppliers is medium as we are getting raw material
from the third party mainly from China, any increase in prices would lead to less profit or even loss
to our company but the supplier has the power to control the prices. Why we have considered it
medium is because of the substitutes available in the market

 Bargaining Power of Customers:

The bargaining power of customer in our company is quite low as we are not providing a retail
outlet where people would come, select and bargain about the prices. We at Cordonnier are
interacting with our customers via online platforms thus decreasing the bargaining power of
customers to low, the right targeted market would only be attracted to us.
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 Competitive Rivalry:

The competitive rivalry is medium which means our existing competitors are less aggressive
towards new entrants this is because of the large potential available in the market also there are very
less documented brands which are registered in Pakistan.

 Threat of new entrants:

The threat of new entrant is quite high as discussed before the market still has huge potential and
gap to fill that means several new entrants would enter in the footwear industry and would be a
threat for us.

 Threat of substitute products or services:

The threat of substitute product or service again is medium as there are chances that someone based
on innovation would provide better service or a substitute product which would instantly capture
the whole market.

2.3. Competitor Analysis:

Table 5: SWOT Analysis

SWOT Competitive
SWOT Cordonnier Gomila Corio Footwear
(Self)
Strengths  Skilled and  Diversity
 Strong Leadership experienced  Handling Customers
 Handling Customers workforce  24/7 support
 Low cost production  Strong and Happy  Highly skilled labor (10 years’
 Marketing Expertise Distributors experience)
  Customization
 Online Platform Handling customers
with the freedom to  Brand Name and
design market recognition
 Customer
satisfaction with
their own designs
 Fewer Delivery
times
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Weaknesses  Quality of product  Less promotion

being compromised  Less Advertisement  It focusses mainly to a niche
 Less use of  Shape (Appearance market
technology of product)  High Price (Less profit)
 The initial brand  Takes more time to deliver
image is low  Huge variety
 Communication
Barrier.  High Price

 Takes more time to

deliver
Opportunities  China overcoming  Changing the shape  China overcoming Pakistan
Pakistan Market in for attraction Market in future.
future.  CPEC it will give  Increase in Purchasing power
 CPEC it will give great opportunity to (Economy getting better)
great opportunity to grow the sale of the  Shifting focus globally instead of
grow the sale of the product. focusing only to Pakistan
product.  China overcoming
 Increase in Pakistan Market in
Purchasing power future
(Economy getting  The great
better) experienced
workforce can do
much better in
results
 Increase in
Purchasing power
(Economy getting
better)

Threats  Technology growing  Competitors offering  Increasing Competition

fast. better product within  Consumer belief
 Consumer belief the same price
(People don’t want  The economy threat  Economy Threat in future
to rely on new brand in the future.
products)  Government Policies
 Changing customer
needs (lifestyle,
taste)
 Competitors
introducing new
technologies
 Economy threat
(Although Economy
is in favor in future,
it may cause harm)
 New Entrants
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The (Table 5:SWOT analysis) indicates that whenever there is a launch of product, business one
should keep in mind what are the strength and weakness of oneself in order to compete in market then
we have to check what are the opportunities one can use as competitive advantages and at last what are
the possible threat that can damage our business. The same model is applied for our customer but as
we can’t check their strength and weakness without any contacts here, we are assuming them, or we
are writing it based on surveys of that brand’s customers. After the SWOT we can easily come up with
our Unique Selling points.

2.4. SWOT Analysis:

Strength Weakness
 Strong marketing due to personal experience  High Risk of Loss
and contacts  Less Variety at start
 Less Delivery Time  Less Human Resource Availability
 Customization  Quality of product being compromised
 More Customer Satisfaction  Less use of technology
 Strong Leadership  The initial brand image is low
 Handling Customers  Communication Barrier.
 Low-cost production
 Marketing Expertise
 Online Platform with the freedom to design
 Customer satisfaction with their own designs
Opportunity Threat
 With more customer satisfaction profit would  Rapid change in technology
increase  New Entrants
 China overcoming Pakistan Market in future.  Less acceptance by the audience
 CPEC it will give great opportunity to grow  Consumer belief (People don’t want to rely
the sale of the product. on new brand products)
 Increase in Purchasing power (Economy  Changing customer needs (lifestyle, taste)
getting better)  Competitors introducing new technologies
 Economy threat (Although Economy is in
favor in future, it may cause harm)
 New Entrants
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2.5. Know your customer:

2.5.1. Our Customers:
Concisely our customers include men who want to buy footwear at cheap price with their best
satisfaction by designing their own, along with it the nature of our customers would be described as
those who don’t want to go to over-crowded markets specially to get their desire footwear the places
which are located deep inside of Lahore. Those customers who want cheap, self-designed product
while sitting at home are our most premium customers.

2.5.2. Where they are located:

For now, we are only focusing on Lahore and would be available for each person in Lahore.

Home visit if our customer is finding it hard to design or if they found some complexity in
measurements (Home visit at initial stages are for some specific areas: Bahria Town, DHA, Iqbal
Town, Model Town, Cantonment, Societies at Mohlanwal Road till Bahria town, Thokar – Raiwind
(Bahria Orchard).

2.5.3. Way of Communication:

There are several means we are using to communicate with our customers

 Social Media
 Website
 Word of Mouth

2.5.4. Why us instead of others?

The reason why they would choose Cordonnier over other companies is because of the product and
service we are offering, Our customer would highly be satisfied with our quality and with the
freedom to design their own shoes the service that has never been available to customers before,
Although similar services were available in market but for that each one has to go to the market to
pay a visit now as an innovation we are providing the service while our customer would be free of
having all these hustles to go to market, all the services and products would be available online
where our customer would design and if there would be any ambiguity they can plan a visit at home.
At last the product would be delivered at door-step within 4-5 days with a return policy if found
dissatisfied with the product.
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2.6. Unique Value Proposition:

Our Unique Value Proposition includes:

 An online platform where customers can design their own product with freedom and creativity.
 Home delivery of product with 4-5 days
 Satisfied customers

3.0 S.O.D Template:

Table 6: SOD Template

Segment Bulk Spatial Delivery/ Assortment/ Customer Information

Name/ Breaking Convenience Waiting Variety Service Provision
Descriptor Time

1. Customer High Medium High High High Low

Segmentation with respect to Corporate Level (Customer):

Segmenting the market by service output demands is necessary this means segmenting the market into
groups of end-users who differ not in the product they want to buy but also in how they want to buy them.
If we see our business template it states that in terms of our customers bulk breaking is high as they want
to buy the product in numbers, not in bulk, Spatial convenience is medium as they don’t have to search
out for the product in market everything is available online, Delivery time is high once they order the
product it doesn’t require any more time from company to deliver it, we promise the delivery time to be in
between 4-5 days. The variety in case of our customers is high as they want multiple and maximum types
of product to satisfy their need at initial stages variety is low to medium, but it would be increased
gradually, talking about customer service with respect to customer it is high as we are offering the service
with product in order to satisfy our customer services should be high. Information provision is low
because after sale services includes feedback rather than installation or some other services.
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3.1. Channel Structure:

We at Cordonnier deals with the end user with Direct Distribution channels.

 Direct Distribution Channel:

Producer Customer /
Consumer

In term of direct distribution channel, Cordonnier directly deals with its consumer/customer in which
there is no use of intermediaries.

Following approach change the structured value of the product in the following ways;

 Price (Cost Saving) when targeting the only consumer without intermediaries
 Time-Saving
 Demand effect
 Sharing of information
 The relationship between consumer and producer
 Convenience for consumer
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3.2. Generic Eight Flows:

Consumer (Customer)
Physical Possession
Producer
Ownership

Promotion

Negotiation

Financing

Risking

Ordering

Payment

Explanation:

The following diagram shows the eight generic flows between a channel the flow contributes to the
production of valued service outputs, It tells the viewer that in case of sending a product from
manufacturer to end-user which kinds of flows take place for example if we see the flow of physical
possession the possession of product flows from producer to customer same is the case of ownership
and negotiation. Promotion, financing and risking flows in both directions it moves from producer to
consumer or backward taking the example of promotion the product is promoted from the producer. In
the end, the payment goes to only 1 direction i.e. customer pays for the product to the producer.
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4.0 Marketing Strategies:

4.1. Targeting:
Our targeted market which we have segmented is on the bases of Geographical, demographics, and
behavioral factors. The following customer profile shows to whom we are targeting and whom we are
going to sell our product.

Table 7: Customer Profile

Customer Profile
Geographical

Region Punjab

City Lahore

Rural and semi-urban areas Rural (05%), Urban (95%)

Demographics

Age All age

Gender Male

Family All families including joint, single etc.

Income More than 40 thousand per month

Occupation Newly employed, at the managerial level or above

Education All levels, Preferably Undergraduate, Graduate.

Behavioral

Occasions Special occasion, Non-Occasion (Universal)

Benefits Service, Status satisfaction, Cheap personal designed shoes

User status The first time, the Medium level user (Prospects)

User rates Medium

Loyalty status Split loyal (Medium)

Readiness stage 2nd stage (Knowledge) Aware of the product but does not have enough knowledge
about it.
Attitude toward Positive attitude

Purchasing Behavior Variety Seeking Purchasing Behavior

 24

4.2. Marketing Mix:

The marketing mix is a combination of factors that can be controlled by the company to influence the
consumer to purchase its products. According to latest research marketing mix includes a total of 7 P’s
but we are focusing five of them here including Product, Price, Place, Promotion, and People.

4.2.1. Product:
The product we have selected for launch is the shoes which are available for men only, shoes i.e
the footwear includes in apparel industry along with the product we are also providing some basic
services to our customers including home delivery, a platform for designing the shoes, and home
visits for assisting in the designing product.

4.2.2. Price:
In case of pricing strategy our price varies according to the design created by our customer, we
have decided some specific prices according to expense that goes from Rs.2000 to 4000. The
reason for selling shoes at these prices is because of covering our expenses and gaining some
profit from selling our product.

4.2.3. Place:
The place for our business is basically based on e-commerce so it has no physical outlets, we are
working with virtual websites and product would be available to our customers via the online
platform.

4.2.4. Promotion:
For the promotion we are using some tactics including use of brochures, social media, word of
mouth as the time would be more digitalized, we would have our promotion on digital space
rather than using ads on Television.

Social sites and new methods would be used mostly. Main promotion for Launch would be done
by social sites, Brochures, Pamphlets, and ads on websites(pop-ups) while targeting our
customers.

We would also use celebrity endorsement, and sale promotion (selling the product at a cheap
price like buy 2 pair of shoes and get 1 free or percentages off on products).
 25

4.2.5. People:
As mentioned before in Cordonnier our values include people we are people oriented we tend to
provide our employees the platform to enhance their skill with a friendly environment, also the
people we are focusing as a customer also add some value to our business when our customers
would be happy, we are likely to get more success and profit. The detail of customers which we
are targeting is already discussed.

Ansoff Model:
As Ansoff model is used as a growth strategy which better tells our vision and mission. We are using it
for NPD (New Product Development).

Table 8: Ansoff Model

Old/Existing Product New Product

Existing Market Penetration Product Development

Market

New Market Development Diversification

Market

 We have selected Market Penetration as our main purpose is to enhance our product while the
market would be the same. We are launching a new platform in the market whereas the product i.e
shoes are already in the market.
 It would be done by providing a new online platform to ensure the freedom of customer, so they
can design their own product easily etc.
 26

4.3. Branding:
Table 9: Branding

New for Launch

Name The Cordonnier

Logo

Symbol

Punch line Design your shoes as you own the Company

Slogan Design your shoes as you own the Company

Color White + Black

 27

5.0 Financial Plan

5.1. Source of Funding:
We at Cordonnier Is working based on equity funding which means all the investment of Rs. 454891
is owner’s money.

5.2. Operating Cost and Expenses:

Cost Estimation

Sr# Description No. Of Cost Per Unit

Units (Rs.) Total Amount (Rs.)
1 Laptop (Toshiba Satellite CL45) 4 15000 60000
Split Air Conditioner (1.0 Ton)
2 EKEE-12S 1
Kenwood 29891 29891
Office Rent + Security (Peace
3 … 20000+22000
Homes Thokar Niaz Baig) 42000
4 Website (Including Domain) 1 17000 17000
Internet Connection (Cable net 8
5 1
mb) (Free installation) 2000 2000
6 Furniture (Table + Chairs) … 32000 32000
7 Office Supplies … 8000 8000
Printer HP Desk Jet Ink
8 1
Advantage 1015 6300 6300
9 Utility Bills … 9000 9000
10 UPS (Apollo with Battery) 1 23000 23000
11 Human Resource (Salary) 4 20000 80000
12 Shoes Raw Material … 100000 100000
13 Designing Machine 1 37000 37000
14 Software’s 1 1000 1000
Water Dispenser + mini fridge
15 1
(Panatron) 10700 10700
16 Marketing Expense 3 19000 57000
17 Miscellaneous Expense … 7000 7000
18 Packaging … … 7000
 28

19 Shoe Maker Designer … 20000 20000

20 Delivery Man 4 10000 40000
Motor bike (ZXMCO ZX 70
21 4
City Rider) 40000 160000
22 Transportation … 12000 12000
Total 760891

Operating Cost and Expenses

Per Month Total Cost Per Annual Cost

Sr. No Description
Cost (Rs.) Month (Rs.) (Rs.)
1 Office Rent 22000 22000 264000
2 Office Supplies 8000 8000 96000
3 Internet Connection 2000 2000 24000
4 Utility 9000 9000 108000
Human Resource
5
(Salary) 80000 80000 960000
Miscellaneous
6
Expense 7000 7000 84000
7 Transportation 12000 12000 144000
8 Shoe Maker Designer 20000 20000 240000
9 Delivery Man 40000 40000 480000
10 Shoes Raw Material 100000 100000 1200000
Total 300000 3600000
 29

5.3. Start-up Finance:

Start-up Finance

Sr. No Description Amount (Rs.)

1 Total Capital Expenses 760891

2 900000
3 Months Operating Expenses (300000*3)
Total Startup financing 1660891

5.4. Revenue Generation:

Revenue Generation

Revenue Price of Product*No. of Units Sold (3500*1500) 5250000

Revenue Generation = 5250000

5.5. Depreciation & Fixed Assets:

Depreciation and Fixed Asset

Depreciation No of Cost per Total Amount Depreciation Depreciation

SR# Units Unit (Rs.) (Rs.) Rate Expense
1 4 15000 60000 20% 12000
Laptop
2 Air Conditioner 1 29891 29891 20% 5978.2

3 … 32000 32000 20% 6400

Furniture
4 1 6300 6300 20% 1260
Printer

5 1 23000 23000 20% 4600

UPS
6 Designing 1 37000 37000 20% 7400
Machine
7 4 40000 160000 20% 32000
Motor Bike
8 1 10700 10700 20% 2140
Water Dispenser
71778.2
Total
 30

5.6. Income Statement:

Projected Income Statement for 5 Years (5% increase)

Description Year 1 Year 2 Year 3 Year 4 Year 5

(Rs.) (Rs.) (Rs.) (Rs.) (Rs.)
Revenue 5250000
5512500 5788125 6077531 6381408
Less: Operating Cost and Expenses

Operating Expenses (3600000)

(3780000) (3969000) (4167450) (4375823)
Depreciation
Expenses (71778)
(75367) (79135) (83092) (87247)
Total Expenses

3671778 3855367 4048135 4250542 4463069

Operating
Income/Loss
1578222 1657133 1739990 1826989 1918338
Less Tax (30%)

(473467) (497140) (521997) (548097) (575502)

Net Income After
Tax
1104755 1159993 1217993 1278892 1342837
 31

5.7. Balance Sheet:

Balance Sheet
Assets Amount Liabilities & Equity Amount
(Rs.) (Rs.)
Laptop 60000

29891 Debt 0
Air Conditioner
Website 17000 Equity 454891
Internet Connection 2000
Furniture 32000
Printer 6300

UPS 23000

Designing Machine 37000

Water Dispenser 10700

Building Security 20000

Marketing 57000

Motor Bike 160000

Total Assets 454891 Total Liabilities & Equity 454891

5.8. Break Even Analysis:

Break Even = Total Annual Expenses

Per Product Charges

Break-Even Analysis

Total Expenses/Per Product Charges 3671778/3500

Approx. 1050 Units for Break Even Point 1049.08

 32

5.9. Ratio Analysis:

Ratio Analysis

21.04%
Return on Sale= (Net profit/ Revenue) *100

Return on Investment= (Net Profit/Total Investment) *100 66.52%

Sr. Description Year 1 Year 2 Year 3 Year 4 Year 5

No.

1 Net Profit 1104755 1159993 1217993 1278892 1342837

2 Return on Investment 66.52 69.84 73.33 77.00 80.85
3 Gross profit Ratio 96.19 96.37 96.54 96.71 96.87

Gross Profit Ratio = Gross Profit/ Net Sale) *100

Gross Profit= Total Revenue – CGS

CGS= 100000+80000+20000 = 200000

Gross Profit Ratio Year 1 Year 2 Year 3 Year 4 Year 5

Gross Profit 525000-200000 5050000 5312500 5588125 5877531 6181408

Net Sales 5250000 5512500 5788125 6077531 6381408

Gross Profit
Ratio 505000/525000*100 96.19% 96.37% 96.54% 96.71% 96.87%
 33

5.10. Per Unit Cost:

P.U.C= (Material + Labor)/ Units Manufactured
= 200000/ 125(Units manufactured per year = 1500, per month = 125)
= Rs. 1600

5.11. Operating Cash Flow:

Operating Cash Flow

Net Profit + Depreciation 1176533

5.12. Capital Budgeting Technique:

Payback Period = Completed Year + Remaining Amount

Next year cash flow

Payback Period

Investment/ Cash Flow 1.4

Payback period approx. 1 year 5 months 1.4

 34

Thank You!