MODBOOKS

MODBOOKS
Critical view of our newly established business

Submitted to Ma’am Samiya

Submitted by

 Syed Ateeb Tariq

 Zainab Jabbar
 Affan Sheikh
 Sandesh Bawani

1
Acknowledgement
We have taken efforts in this project. However, it would not have been possible without the kind
support and help of our one and only teacher in this course Ma’am Samiya Hameed. We would like to
extend our sincere thanks to Ma’am Samiya.

We are highly indebted to Ma’am Samiya for her guidance and constant supervision as well as for
providing necessary information regarding the project & also for her support in completing the project.
We would like to express our gratitude towards our parents for their kind co-operation and
encouragement which helped us in completion of this project.

I would like to express my special gratitude and thanks to industry persons for giving me such attention
and time. My thanks and appreciations also go to my colleagues in developing the project and people
who have willingly helped me out with their abilities.
Index
Acknowledgement ........................................................................................................................................ 1
Key Partners .................................................................................................................................................. 4
Key activities ................................................................................................................................................. 4
Customer Relationship .................................................................................................................................. 5
Customer Segment ....................................................................................................................................... 5
Key Resource ................................................................................................................................................. 5
Distribution Channel ..................................................................................................................................... 5
Value Proposition .......................................................................................................................................... 6
Cost Structure ............................................................................................................................................... 6
Revenue Stream ............................................................................................................................................ 7
Key Partners
The key partners of our business are many. Our major partner is M. Ausaf Lami-Bind. It is the name of
our supplier’s business. M. Ausaf will supply us our notebooks; the key advantage associated with M.
Ausaf is that it carries out each and every task required to produce our notebooks. Hence, we can get
our finished notebooks from a single supplier. This supplier has an outlet near paper market Karachi. We
have shortlisted several suppliers who can do the same tasks but M. Ausaf is efficient in every respect.
The other suppliers include the similar supplier like M. Ausaf which is located in Kairmabad, and some
others in paper market.

Moreover, incase due to any reason incase suppliers like M. Ausaf become less attractive choice, we will
buy the papers for our notebooks first, then we will get the front covers of the notebook printed
separately and get them bonded with papers in a spiral notebook form. Moreover our supplier for front
cover paper will be Ali Paper Mart, and/or Daulat sons located in paper market. The vendor for printing
and binding will be Shakeel Sons in paper market, and our vendor for paper will be Muhammad Danish
Manger Sales (Hamdam Paper Products) in paper market.

Key activities
Our key activities in this business will include:

1. Surveying the paper market.

2. Buying the paper from paper market from the vendor(s) mentioned in key partners section.

3. Buying the hard-paper from paper market from the vendor(s) mentioned in key partners section.

4. Getting the front-cover printed and bonded with papers in the form of spiral notebooks.

5. Transporting the finished notebooks to Affan’s house.

6. Transporting those notebooks to university or at different bookshops in Karachi.

7. collecting the due payments from bookshops if any incase notebooks are sold to them.

Activities ranging from 1-4 are the most important ones and these activities require our most of the
efforts
Customer Relationship
We will develop one to one relationship with our customers as we will be taking orders from them
online and then provide them the registers in university by ourselves. Moreover, we will also develop
one to one relationship with bookshop owners as well as we will approach them to market our product.
We also expect to develop a long term or long lasting relationships with our buyers( bookshops and
customers) so that we can observe sustainable sales through returning customers.

Customer Segment
As per our analysis most of our consumers would include the consumers who belong to either middle
class or upper class. The reason for that is: there are several kinds of simpler and cheaper registers that
are available in the market which has the paper and outlook of lower quality. As a result, due to the
financial limitations most of the lower class consumers would prefer to buy those cheapest registers.

Moreover every consumer have an equal importance in our eyes, but we will try to target upper class
consumers as they tend to prefer more to buy modified registers which are more profitable for us.

Key Resource
The key resources which are important to deliver our value propositions are transportation apps like
Careem and Uber, Vendors specially the ones which are located at paper market and vendors like M.
Ausaf who provide the finished notebooks.

Distribution Channel
The distribution channel of our business is simple and is shown below:

Vendor => Retailer( MODBOOKS) => Customers

We have planned to sell notebooks to our individual customers online, where bookshop owners can also
buy. To book shop owners we will sell them our notebooks mainly by visiting their shops.
Value Proposition
Nowadays spiral notebooks are trending in university students for the purpose of noting down class
work. There are several reasons associated with the trend some of them are:

1. Multiple subject notebooks are available in the market which enables students to note their class
work for different courses in a single notebook.

2. These notebooks are easy to handle and are light weight so students do not have to carry their bags,
instead they carry these notebooks.

3. It’s a cheaper option nowadays as many students do not have to buy bags instead they carry a single
registers which contain all the course work of a semester.

So as per our view this trend is quite justifiable. But, we also noticed that in many bookshops specially
the ones in universities these notebooks are highly priced. Plus these notebooks have the typical front
covers which are not much impressive and catchy. So we decided to provide notebooks to students
(specially the university students) at cheaper prices, with catchy front covers of our choice, and/or with
modified front covers upon the request of our customers. This would enhance the personality and
appearances of students who only carry registers to their universities as their catchy front covers will be
quite visible to the people around them.

Cost Structure
The cost structure for our notebooks is as follows (for a standard size 6 subject notebook):

- Cost per page Rs.1

- Cost of pages per register Rs.150
- Cost of card sheet front with printing
- And matt black back cover Rs.30
- Cost of spiral binding 20
- Cost of separators 10
- Miscellaneous expanses 1000
- Total cost per register 220
- Cost for first 100 registers Rs. 22000
Revenue Stream
The revenue stream for our business is as follows (for a standard size 6 subject notebook):

- Price per register 320

- Profit per register 100

- Profit for first 100 registers Rs. 10000

- Profit in percentage 45%

Problem Identification
Following are the problems that we faced during the startup of this business

There are not many vendors there that would make customized registers

The vendor who do work in customized register only work in bulk quantity (around 100-500 register at a
time)

Cost for printing will exceed the amount of register if we get one offset printing and not in bulk quantity