ENTREPRENEURIAL IDEA THROUGH MARKET SURVEY

IDEA:ARTISTIC BOX

ASSIGNMENT GIVEN BY:

Dr. Syed Taha
CONDUCTED BY:
Mohammed Hassan Akbari ()
Sadia Ahmed Khan (6314)
Alya Saeed Khan (6278)
Raheela (7103)
Eraj Shakeel (7506)
FRIDAY SESSION
Spring (2016)
 Acknowledgement
All the acclamation and appreciation is for Almighty Allah the most merciful, gracious and
beneficent who is the entire source of all the knowledge and wisdom endowed to mankind. We
greatly thankful to Almighty Allah, who showed us path, which lead to our goals and blessed us
to reach our desired destination. We are grateful to express our expressions for course facilitator
“Dr. Taha” for his continuous support, his patience, motivation, enthusiasm, and immense
knowledge in our research. Foremost, His guidance helped us all the time of research and
writing we could not imagined our survey without his support and guidance.We perceive this
opportunity as a big milestone in our career development. We will strive to use this gained skill
and knowledge in the best possible way and continue to work for our improvement in order to
attain desired career objectives.

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Table of Contents
IDEA GENERATION:
PROCESS:
BRAINSTORMING:
IDEA:
PRODUCT LINE:
PRODUCT COSTING
DELUXE ALUMINIUM ARTIST SET
DELUXE WOODEN ARTIST SET
CONSUMER DEMOGRAPHIC ANALYSIS:
BUSINESS ENVIRONMENT ANALYSIS:
COMPETITOR ANALYSIS:
MARKET ANALYSIS:
MARKETING STRATEGIES
SOCIO-ECONOMIC DEMOGRAPHY:
DEMOGRAPHICS:
PSYCHOGRAPHICS:
BUYING BEHAVIOR:
SALES CHANNEL
OPERATIONIONS DESCRIPTION:
ORGANIZTIONAL STRUCTURE
SALES & MARKETING
SUPPLYCHAIN
Forecasting
Importing & Clearance
Inventory Management
Sales & Receivables Collection
FINANCE & ADMINISTRATION
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OPERATIONAL COSTING

IDEA GENERATION:
The course “Entrepreneurship” provides us a good foundation of entrepreneurship knowledge. It also
designed to provide a thorough introduction to the theoretical and practical issues associated with
entrepreneurship. Our facilitator, Dr. Taha provides an integrated approach to new venture creation. He
helps us to identify sources of entrepreneurial finance, assess the relevance of the practice of
entrepreneurship to firm and society and illustrate key ideas of entrepreneurship. Finally, this course
allows us to rigorously analyze the potential of a new business opportunity.

PROCESS:
After sir, has assigned us a project “FINDING ENTREPRENEURAL IDEA THROUGH
MARKET SURVEY”, a group project in which all five members are supposed to participate in it. So,
for the mutual discussion about deciding a business project, which we have chosen as per our facilitator’s
instruction. We gathered and thought of various business projects but some of them were not workable.
Every group member started giving their thoughts about the project and after several discussions we come
up on one idea to choose a product which has demand in the market. The description of the product is
given in the following headings.

BRAINSTORMING:
Our group conducted a brainstorming activity and like in all such sessions what happens is
members propose new ideas and they get rejected until we come to the most practical and feasible one. In
our group the Other Ideas put forward earlier prior to coming to agreement on this artist toolkit were
inclusive of Safety belts for bicycles and Motorcycles, Abayas, Water filtration devices, & Last but not
least a comprehensive Shade box wherein we would include the shades of a single broad color arranged in
intensity from lightest to deepest. The Last mentioned idea definitely was not the least because our
current Idea was actually inspired by this as we made a variant with modifications in it to include other
tools of the trade. What we all came to agreement in the end was a multipurpose toolkit for artists as it
seemed to be more feasible and also dynamic and simpler. The Idea of Motorcycle and Bicycle Safety
belt was rejected as it needed us to do physical research and experimentation.
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IDEA:
By market research and demand of the market we come up with the idea of “Artistic Box”. As we
all know that our new generation is now focusing on new emerging fields like media, textile, arts and
design, designer’s, institutes of fashion and designingetc., so we decided to choose a product which is the
need of the people who are going towards in the field of arts.

It is multipurpose in the sense that besides color pencils it includes inks, Paints and also shading
pencils. It will also include other tools like gloves for the paint, set of brushes, oil paints, crayon which
are used by artists in work.
The product definitely has a need in the market where artists are exits in a huge amount at various
dimensions such as Student Level, Personal Interest or teacher etc all need some form of a multipurpose
dynamic and diverse tool kit to make their work easier and also improve the quality. Also we have made
sure to add some bonus features to the product like that it has got more shades and hues of the same color
as compared to earlier products. The product will be made non toxic and also we will adhere to strictest
standards of quality in the product and procuring of ingredients and raw materials. The product name will
be “Artistic Box” and the tagline will be “color your life with creativity”.

PRODUCT LINE:
Artistic Box “colors your life with creativity”.

We are providing you modern and detailed product. We are bringing a new innovation through
our product with complete useful items which enhance your creativity in a portable manner. The best
thing is it gives you all in one. Our product line comprises of following items which are:

▪ Aluminum Box
▪ Color pencils
▪ Oil pastels
▪ Watercolor cakes
▪ Watercolor paints
▪ Oil paints
▪ Acrylic Paints
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 ▪ Artist paint brush
▪ Painting Palette
▪ Palette knife
▪ Stencils
▪ Detailed pencil colors
▪ Markers
▪ Paint Brushes
▪ Water colors paints
▪ Water color cakes
▪ Sketching Pencils
▪ Erasers
▪ Sharpeners
▪ Thinner
▪ Different Shades Of Leads
▪ Spare piece of cloth

PRODUCT COSTING
DELUXE ALUMINIUM ARTIST SET
QA-ZT01 ALUMINIUM CASE
FOB UNIT PRICE U.S $ 10.1

FREIGHT 0.50% 0.05 10.61

INSURANCE 1.00% 0.10 11.63

CIF PRICE U.S $ 11.63

EXCHANGE RATE 105 1221.17

CUSTOM DUTY 7.50% 91.59 91.59

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SALES TAX 17.00% 207.60 207.60

INCOME TAX 6.00% 73.27 73.27

CLEARING CHARGES 2.00% 24.42 24.42

INLAND TRANSPORTATION 2.00% 24.42 24.42

MISC.EXPENSE 2.00% 24.42 24.42

TOTAL LANDED COST AT OUR WAREHOUSE 1666.89

DELUXE WOODEN ARTIST SET

QA-ZTO4 WOODEN CASE
FOB UNIT PRICE U.S $ 10.5

FREIGHT 0.50% 0.05 11.05

INSURANCE 1.00% 0.11 12.15

CIF PRICE U.S $ 12.15

EXCHANGE RATE 105 1276.14

CUSTOM DUTY 7.50% 95.71 95.71

SALES TAX 17.00% 216.94 216.94

INCOME TAX 6.00% 76.57 76.57

CLEARING CHARGES 2.00% 25.52 25.52

INLAND TRANSPORTATION 2.00% 25.52 25.52

MISC.EXPENSE 2.00% 25.52 25.52

TOTAL LANDED COST AT OUR WAREHOUSE 1741.94

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CONSUMER DEMOGRAPHIC ANALYSIS:
Consumer demographics provide you the complete details of your customer also called complete
customer profile it’s about analyzing your customer’s behavior. Customer profile is simple tools that can
help business better understand. It defines age, target market, geographical location.

▪ AGE: 18+
▪ TARGET MARKET: upper middle class and upper class as well.
▪ GEOGRAPHICAL LOCATION: All institutions which are providing education related to arts
and crafts and people who are interested in exploring artistic potential and talents. And
professionals.

BUSINESS ENVIRONMENT ANALYSIS:

It is necessary to conduct a Business Environment Analysis in order to understand the range of
various factors which will exert some sort of influence or effect on the business. These factors can be
divided into 2 broad categories namely those which are under our control and those beyond our control.
Factors which are beyond our control are known as systematic factors and we must be most prepared to
meet and face and adapt to the challenges they pose to our business its operations and performance and
productivity. Situational factors are of a dynamic and ever changing nature that is why it is necessary to
maintain a constant check and surveillance of the business operational environment. As well as making a
suitable and appropriate response.

Our business environment as we understand it from this point in time is going to be a relatively
untapped market as earlier it seems that no one had ventured to create such a product. So yes initially we
may not face direct competition but after the patent of the product expires we shall have to make
preparation to face competition. This requires us to think in the long run and be far sighted. We will
initially start by reducing the price and making it more affordable as well as improving the product in
terms of quality and adding extra features.
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COMPETITOR ANALYSIS:
Competitor analysis is necessary for us to understand the level of prevailing and potential
competition our business may face. Though initially competition may not be serious as it is a
new of a kind product but after time duration (Patent Expiry) this phenomenon will raise its head
so we must be fully able to understand what we are going to deal with. Our competition will
come from those manufacturers of Artistic stationary of the type we will be producing. The
overall environment is a new one and we will need to do thorough research as well as sensible
and efficient promotional activity prior to entering the market.

We will need a safety in production process and also maintain the standards of product
and output in order to do so we must not compromise on quality and also use environmental
sound and consumer health & safety friendly ingredients in the product. We should also on the
product clearly specify the age groups it is meant for and that the product is non toxic.

MARKET ANALYSIS:
The most essential part is in marketing strategy is 4P’s of marketing should be used for
launching the product. If our customers are not satisfied with the artistic product we will survive
in a particular market. It is the initial step before launching new Artistic Box. By conducting
Marketing research, we are evaluating that either the Artistic Box which we are announcing is
desirable for our customers or not. As we are going to introduce a new trend so for that a
systematic market research is very important for my business plan. The research which we have
chosen is primary research as it is affordable and for the purpose of having feedback of my
targeted market, primary research is important.
We have focused on primary research methods. Since, professional market researchers are
costly, so we gathered information through the survey and the easily accessible source internet.
Figures and numbers regardingour project were available on the internet.The opening location
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 of our idea has enough competition. Artistic boxworks in arts industry, media, textile, design,
visual arts andmore predominantly in the arts institutes. The arts industry market of Pakistan is
highly competitive market especially after big Arts institutes and fashion designing such as
Karachi School of business and Arts, Karachi University Arts Department, Indus Valley School of
arts and Architecture, National institute of Arts and management sciences, Federal Urdu
university of Arts and Sciences, College of Media and Arts (CMA). Launching an artistic box that
can face many problems as there are many strong competitors. People are generally more loyal
to a specific well known rather than to a new Artistic box.
Furthermore, then sample size is the students of different institutes of Arts inKarachi
especially the area of PECHS, Gulshan-e-Iqbal. The total population of is based on huge amount
of market where students of arts exists in a bulk quantity. We are offering product to the arts
students of Gulshan-e-Iqbal who are in the age group of 18+.
For launching a new brand into the market the marketer should consider the following steps in
developing marketing strategy:
1) Build an artistic capital fund if possible

2) Look at the unmet needs of that particular product

3) Marketers must become relationship builders as much as revenue generators

MARKETING STRATEGIES
We are going to develop a proper website and face book page. We are going to provide information to our
customers by product flyers as well as product posters. Communication is very important in marketing
strategies as to sell our product we should communicate properly to our consumers. We are going to
communicate to institutions through administration in charge of universities which are providing
education related to arts, graphics and designs by giving them product demo, by signing B2B contract
with the institutions and gave them a certain proportion of service charge as to include our product in their

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course material and by promoting our product to the students. Workshops and seminars will be conducted
for product demo. Competitions will be held in universities and arts school as to promote our product.
Product will be provided to participants on discount so that more and more students can participate and
buy our product on discounted price. Product will be supplied to the stationary shops and small shop signs
would be made as to attract consumers and to keep them informed that that are product is available in that
shop.

SOCIO-ECONOMIC DEMOGRAPHY:
The demographics, psychographics and the buying behavior of Artistic box customers
are as follow:

DEMOGRAPHICS:
● Artistic box will be supply to the shopkeepers of PECHS, Gulshan-e-Iqbal.
● The target market of artistic box is college and university students both boys and girls.
● The income should be around 50000.

PSYCHOGRAPHICS:
● The Artistic box customers will be arts students of different arts universities of Karachi7.
● They find excitement in doing painting and instruments used in painting work.
● They will be aware of new designs and new fashion trends.

BUYING BEHAVIOR:
● People like to buy artistic box because this box is easily accessible and containing arts
colors, stationary, brushes all the essential things which are used in artist’s work.
● Keeps them aware with the latest trends in the market.
● Seeks unique and stylish Artistic box.
● Spends money on Stationary, colors, oil paint and the things in a single artistic box.

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SALES CHANNEL
● Design institutes
● Textile Universities
● Home Economics Colleges
● Institute of Diploma in Fashion and Design

OPERATIONIONS DESCRIPTION:
The operational plan will comprise how we are going to operate. What will be the organizational
structure? Where location is will be?
First we are going to open an office in Gulshan-e-Iqbal near Civic Centre at Mashreq Centre due
to the reason it is in the center and all the offices of a companies are present in this building. We
will open a small office where we are going to operate and will take orders and places orders
from the institutions. We are going to import our product as we all know our product is
innovation and it is not available in the market so we are going to import the Artistic Box from
China because they are providing this product in a complete and compact set and in cheaper
price which will help us in catering this populated market.

ORGANIZTIONAL STRUCTURE

Operational plan will comprise of following departments:

▪ Sales and Marketing
▪ Supply chain
▪ Finance and Administration

SALES & MARKETING

This department will be responsible for retail and wholesale market. Selling product and
communicating to the institutions and to increase sales. For sales and marketing department two
employees will be hired whose responsibility will be to sell product and they will be provided
basic salary and commission. They are going to look after how to cater as much people as they
can through market our product. This department is responsible for distribution channel.

SUPPLYCHAIN
This department will be responsible for
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Forecasting
It includes one month product should be available in the market, one month product should be
kept in the warehouse and one month order should be placed so that there should be no shortage
of our product.

Importing & Clearance

It includes product importing from other country which is china. Our product will be import from
china he will be responsible in which port our product will be arrived and fro clearing our
shipment through custom and duty.

Inventory Management
In this he will responsible for taking care of our product when product will be arrived from port
and he will be responsible for distribution and supply of our product to the market and inventory.

Sales & Receivables Collection

He is going to take care of collections of receivables from the market. The product which we
have kept in the market, he will be responsible for collecting receivables from the market.

FINANCE & ADMINISTRATION

This department comprises of two sub categories which is accounts and administration. Accounts
will be responsible for finance, receivables, forecasting and for managing finance.
Administration will be responsible for hiring people, managing the organization, day to day
issues resolve and for job description.

OPERATIONAL COSTING
For business setup Prime Minister Entrepreneurship loan will be taken to start business as well as
all the partners will equally share investment.

FUNDING
PARTNER 1 (CEO) 200,000
PARTNER 2 (SALES) 200,000
PARTNER 3 (MARKETING) 200,000
PARTNER 4 (FINANCE) 200,000

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PARTNER 5 (ADMIN) 200,000

BANK LOAN 2,000,000

COSTS ESTIMATED
START-UP COST
(YEAR-1)
OFFICE DEPOSIT
25,000 6 150,000
FURNITURE
FIXTURE 15,000 8 120,000
OFFICE
EQUIPMENT 150,000 1 150,000
OFFICE
RENOVATIONS 100,000 1 100,000
GENERAL TOOLS
20,000 1 20,000
DEMO UNIT
2,000 2 4,000
TOTAL START UP
COST 544,000

AVERAGE MONTHLY
COST
A & P BUDGET 50,000
1 50,000
SALARIES
190,000 8 190,000
COMMISSIONS
20,000 2 20,000
RENT
25,000 1 25,000

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 UTILITY BILLS
30,000 1 30,000
FUEL & TRAVEL
10,000 2 10,000
WEB CHARGES
3,000 1 3,000
STATIONARY
3,000 1 3,000
ENTERTAINME
NT 5,000 1 5,000
MISC.
5,000 1 5,000
TOTAL MONTHLY COST
341,000

12 4,092,000

FINANCIAL COST
MONTHLY INTREST ON LOAN 1 17000
YEARLY FINANCIAL 12 204000
COST

SALE COGS EXPENSE PROFIT RESERVE

FUND
SALE IST QTR 0 0
1,618,000 1,382,000
SALE 2ND QTR
3,067,945 1,022,648 1,074,000 971,296 1,330,648
SALE 3RD QTR
3,067,945 1,022,648 1,074,000 971,296 2,301,945
SALE 4TH QTR
3,067,945 1,022,648 1,074,000 971,296 3,273,241
Yearly sales +
profit 9,203,834 3,067,945 4,840,000 2,913,889

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APPENDICIES

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