1.

Scope of Business

Toys have been an important and integral part of our childhood and growing up stages since ancient times. Though some of the modern age toys are completely different and much more advanced than Traditional toys, there are some toys, which have been around since centuries and continue to be the favorite toys of everyone's childhood, like the wooden rocking horse. The children of today, their habits, requirements and needs, likings, upbringing, etc. are very much different from those of the previous generations. Thus, their toys have also undergone a lot of evolution and modifications. Nowadays, there are many types of toys available, which not only entertain the kids, but they are educational and help in the overall growth of the children. However, wooden toys, though they are traditional, continue to rule the charts even now, because of their advantages and features. They are not just simple toys without relevant details or great features, but have evolved into bright, eye-catchy and educational toys of today.

1.1 Wooden toys:

they have been present since centuries and are still popular and best choices for many. These toys have many advantages over the present day plastic toys, which make them a hit amongst parents while searching for toys fit for their kids' needs. The amazing characteristics and advantages of these toys over their present day counter parts are as follows:

1.1.1 Natural and safe:

The present day plastic toys have been found to contain a toxic component called lead. Lead when consumed can have serious and adverse health effects and can be very harmful for children. Growing toddlers often have a habit of putting toys in their mouths, thus these toys pose significant danger. On the other hand, wooden toys are made from natural

woods like pine, bamboo, etc. and contain glue rather than nails so as to make them safer for kids. Mostly natural dyes, which are non-toxic, are used to paint the toys.

1.1.2 Stronger:

These toys are stronger and more durable than plastic or cardboard toys, just like a wooden puzzle is more durable than cardboard ones, etc. In addition, these toys do not contain any small or fragile parts like plastic toys, which can break off easily and pose a threat of choking the kids. Thus, they provide the best value for your hard-earned money. As wood is rugged, these toys lasts generations and are often made into heirlooms, which are preserved and passed down to various generations.

1.1.3 Modern:

These toys are as modern as the other present day's toys. Earlier they were available in crude and simplest form, without much detailing or attractive looks. However, now these too are available in bright colors and features to attract the attention of kids. These are available in all forms, like pull toys for kids learning to walk or educational and development preschool toys for developing toddlers.

1.1.4 Green: When plastic toys are disposed off, they
end up polluting the environment. Seeing this, many wooden toys manufacturers have started using woods of trees, which are not facing the threat of extinction.

2.

Introduction

The Products we are selling are wooden toys. Wooden toys are often presented in the simplest fashion. We believe that simplicity is the key to stimulate a child's imagination and to create endless playtime. We carry many different types of distinguished quality and unique wooden toys, games, puzzles and child's furniture. Safety is our number one priority. Each and every one of our toys is carefully crafted with non-toxic paint and 100% child safe design. We guarantee the quality of our toys. Customer satisfaction is our primary concern. If you ever are not satisfied with our products or services, you can request by e-mail or call us for our immediate attention. We will attend to you within 24 hours. Our customer’s suggestions and comments are always appreciated. We are manufacturing unique and specialized educational wooden toys which are a source of fun for the children, aside from providing fun, pleasure it is fostering creativity and sharing and providing the children with hours of entertainment. These toys engage the child’s imagination and creativity.

3.

Our Policy

These toys are made for children between 4 to 7 years old and keeping in view the point of the parents, what they want for their children. These toys can be dangerous for the children who are under the age of 3 because a child at that age has no sense of his. He can swallow, pinch, or smash it into his head etc. That is why we have

prohibited our toys on the ages less than 3. These toys are not for infants, toddlers and children who still mouth objects. Children will love to play with these wooden toys because it is something diverse with the same old plastic and it has a plus point too that it does not usually break early then the plastic ones. They remain new as once brought because of the polish. A child can play with our toys everywhere like in the cars, daycare center’s schools, at the baby sitter’s and grandparent’s house etc. We are making toys by keeping these things in mind.  Toys should be safe for use.  Toys should be easy to clean.  Toys should be easy to handle.  Toys should be attractive that kids play with them again and again.  Toys should be educational.  Toys should be extremely fine.  Toys should be customer satisfactory.  Toys should be not offensive for kids.

Our motive & Responsibility
We consider it our prime responsibility to create a good and fun learning experience for the children. Children can get as much fun and pleasure from playing with shoeboxes, car keys and saucepans as they can but they can provide harm to them. These toys are developed for a purpose to provide children something which can improve their learning skills along with providing fun and pleasure and can be trusted by parents. Because some of the other toys are spoiling children and are leaving bad

effects on the children minds as well as the parents dislike them but they are forced to buy the toys because of their children. Our toys are specifically designed and built keeping in mind the safety standards and to focusing on a child’s learning and growth. Our prime motive is to contribute to the economic growth by introducing new products and creating new job opportunities. The jobs created by our business are meant for carpenters and the painters. The business is offering good opportunity to the true craftsman who is suffering because of technological revolutions. We have no factories and all our toys are made on contract by outside suppliers which give the flexibility to change its designs quickly. We are promoting our cultural heritage in front of the entire world. The international market is a big time opportunity for us for business & we are trying with the best of our efforts to explore that horizon and gain potential revenue and business for our country.

4. Why us...?????
There are many other companies which are competing with us in the same scope of business but yet we have a good customer number of international and local customers. Our customer’s interest in our toys is our main motivator to keep exceling ahead and offering quality products in a competitive market. The following points are distinguishing that why people have to choose us. • Safety • Natural material & Fine Craftsmanship. • Cheap.

• Tough. • Easy Cleaning. • Return Policy.

4.1 Safety
The safety and durability of our wooden toys is very important. All of our parts are hand assembled using Allweather wood glue (no nails!). All of our collectible toys are smoothly sanded. No sharp edges or splinters to worry about. So we assure you the finest when it comes to safety.

4.2 Natural material & Fine Craftsmanship
Our handcrafted creations are made primarily of spruce, pine and assorted hardwoods. We use a minimum of hardware in our pieces. We take great care in handcrafting our wooden toys so they will have an eyeappealing appearance that is unique. Our wood toys make wonderful gifts for people who love handcrafted transportation vehicles. All pieces are modeled after real vehicles and created with attention to proportion and function to make them stimulating the imagination and a joy to behold. We leave our wooden toys in their natural wood finish. Your model will look like a work of art rather than another plastic truck from a store shelf.

4.3 Cheap
We offer products at a very reasonable and competitive

price for all classes of consumers. We try use the best materials available and design toys which are perfect in craftsmanship and offer them all at a very reasonable price. Infact we try to give the customers the best value for their money.

4.4 Toughness
Our handcrafted wooden toys are built TOUGH, but like all wooden toys they are not indestructible. We assure the best quality by meeting the best quality standards available and by thorough testing of any product before it comes to the market. Due to the fine handcrafted detail and abundance of moving parts, we sell our wooden toys as models for adults and older children. Because each child is unique in their development, parents must decide if our wooden toys are appropriate for their children.

4.5 Cleaning
The toys can be easily cleaned with a cloth or Scotch Brite pads. They can easily be cleaned by using a damp cloth with a mild cleaning agent. Some more delicate looking toys can be cleaned by using a soft brush.

4.6 Return Policy
Our collectible wooden toys are handcrafted to withstand a lifetime of enjoyment. If you are not 100% satisfied with any wooden toy truck, train or farm equipment, simply return the toy within 10 days of your receipt for a refund of the purchase price. Please include a copy of the

invoice. All toys must be undamaged/unused and in their original undamaged packaging. Shipping charges are not refundable.

5. Target Market
I.Adults II.Young Children III.Consumer budget Specific IV.International

5.1 Young Kids
As we are selling toys we are targeting the young consumers such as children. When someone is a child, he or she just loves one thing and that is toys. Everyone has some toys in his childhood. So, parents of the children would do anything to fulfill the desire of their children. And if we are good enough to earn the trust of young kids then we can say that we achieved our 1st consumer target. So in order to do that we are offering varied product according to the market trends which cover the children’s most wanted list of must have toys.

5.3 Adults
We are also targeting the adult consumers because if you are a male or a female you will buy anything which is precious to you or its eye appealing to you and more of that if it is cheap you will certainly buy it for your kids or as a decoration piece. So as explained above our toys are

eye appealing and eye catching if anyone sees it once he would like its fine work and will buy it. Our toys can be entertaining and also can be used for the decoration. We have a wide range of collectibles for the adults because every adult person fantasizes about his childhood memories; we are offering him a chance to look into his past.

5.4 Consumer Budget Specific
We have toys for all masses, usually as we know there are many things which are not available for low budget consumers or are too much expensive that they cannot buy them. So as discussed above our main priority is customer satisfaction. One area the customer is much sensitive and concerned about is the price, so we have toys for all type of masses and for all sorts of people having varying budgets. We design our toys keeping in mind all the potential consumers with a prime motive of having happy customers from all segments.

5.5 International Market
Currently we have a number of international customers as well in our customer lineup. We are targeting the international market of Europe and North America as a good opportunity to explore into. We know that the international market has a huge demand for collectables and craftsmanship and we are offering the international market just that. Our toys are most finely crafted by the most skilled workmen and there is a hint of their craftsmanship in all our products. We have a good line up of collectibles and some good decoration pieces available. Our toys offer the international consumer all

what they desire in a fine piece of skill. So the International market is a big contributor to our business progress and growth.

6.0 Marketing, Distribution & Pest Analysis
Marketing:
1. Selling:
We sell the wooden toys at a very suitable price which is affordable for all the people .As we previously explained that customer satisfaction is our top most priority. We are committed to give our valuable customers the full value for their money and the best quality affordable .We are new to the market so in order to get our Name in popular we have to give some special discount offers and Low selling price at the start. We are selling different types of wooden toys which play a vital role in the nourishment of Children.

So, our price for *Wooden Puzzles (Depending upon size) * Wooden Car,Train,Plane *Wooden Animal set *Wooden Blocks *Wooden counting Abacus 5-10$ 20-30$ 30$ 20$ 15$

2. Competitor’s price: 1. Local:
*Cars *Animal set 1500 *Wooden Puzzle Rs 800 Rs 1200Rs 500

There are no such registered wooden toys retailers in Pakistan. Different toy stores are giving imported wooden toys but they do not do business in wooden toys specifically. The price of the Wooden toys in Local toy stores we visited are

2. International:
There is wide range of wooden toys competitors in America and Europe. There is very much demand of the wooden toys because the people have a good taste of fine craftsmanship and collecting things there but as usual the productivity is low, that’s why the price is high.

The price of the some toys of renown Wooden Toys Companies In America are: *Car *Puzzle *Animal set *Blocks 75$ 50$ 80-100$ 75$

3. Margin of profit
As we are new to the market. Our profit margin is quite low. We first need to get our name in established in the consumer’s mind and to set ourselves as a good well reputed brand. Our profit margin is just 20-25% at maximum.

Product Features:
A toy is any object that can be used for play and our wooden toys is just like that they provide an entertainment while fulfilling an educational role. The main feature of our product is that they should develop the sense of child in every way like in education, entertainment, basic needs of humans, games, music etc. Our wooden toys should be strong, clean, modern and according to child’s imagination. Its innovative and very beautiful design & craftsmanship attract the child to buy it because our product helps the child to take it task easily. Our wooden toy is clean, fine, highly color polished, educational and our toys are not offensive for kids. And we also have plans to launch different featured wooden toys which are new in market.

1. Stack and bull dinosaur wooden toys. 2. Animal pencils. 3. Musical instruments. 4. Hand crafted hobby horses.

Quality:
Our product is nontoxic, made from all natural ingredients and safe .Its natural and fine. And there is no sharpness in our toys which cuts the hand, its fine and made of pure wood. We tend to give our customers 100% quality. The following quality features are given • • • • Natural Fine Smooth Safe

Placement:

RETAILITY:
In model town we have a small building at rent and the rent of the building is around 20,000 rupees and this is also our shop and we store and save all our wooden toys in it. So the building is acting as a warehouse to our toys as well. In international market we have also a small retail shop at rent and the rent of the shop is around 400 Euros. Also we have made some arrangement with the local dealers of toys who are offering our products to the consumer at a very reasonable rate. These small retail shops are promoting our business in a good manner and we are sharing a good chunk of profits made through that.

DISTRIBUTION:
We distribute our products at international outlets through a small contract with a small shipping company who transport our products through the sea route. From there we have arrangements with local transport companies who transport the toys to our business places over there. Currently we are trying to save in transportation costs to offer a good price to the people buying our toys. For the distribution in the local markets we have our own transport vehicle which goes from our warehouse to the shops and delivers the toys over there. We have made arrangements with local courier companies as well to make some special deliveries for the retailers and our valued customers.

PROMOTION:
ADDS: We are planning to promote our business through a variety of mediums to offer cheap and economical publicity for our products, actually the main issue in the local market is first educating the consumer’s to buy our products because it is an art right now which is long forgotten so what we are planning to do is to utilize the media available to educate the masses. So we will start by giving some advertisements in the newspapers because nearly every one reads a newspaper. Then we are thinking of promoting our business through advertisements through radio channels as well. Finally the best medium to exploit the market now a days is the internet so we are making deals with a few local websites. And we have currently started a website to promote our business in the international masses as well. As our business progresses we will shoot some video advertisements as well for our products.

WEBSITE: All the specifications and features of our toys will be given in our website. The toys will have detail HD pictures of them available at the web to show

the good detail that has been so finely been put into the toys. There will be pricing information readily and regularly updated over there. All the interactive flow chart of the toy making will also be there to educate people the work that is behind this fine piece of art. Online shopping facility will be added shortly. We will make a page of Wooden Toys on some famous social networking site in order to educate people with the toys. We will give a lot of details over there regarding our wooden toys MEDIUM: As already described above the medium that we are going to utilize in promoting our business are newspapers, Radio and Internet. Video and television advertisements will be kept a minimum due to shortage of budget.

LOCAL COMPETITORS:
There are many types of local competitors in Pakistan. They are not registered for wooden toys but they are selling regular toys. Because a toy is always anything which is of interests to a child the most so all these companies are our natural competitors who don’t compete in the same league but are directly affecting our business. Some of the companies are listed below • • • • KBS international ZNZ enterprises Rank Traders Amir associates

International competitors:
International market is relatively a big market to exploit and we have a good number of same product class competitors having well-earned reputation over there. The main competitors that have an impact on our business are mentioned below. • • • • FAGUS, Germany HABA, Germany SCALINO, Switzerland THAMES & KOSMOS USA

Apart from these direct competitors there are other companies that are also in the toy business so it is a tough market to exploit and penetrate.

RAW MATERIAL:
1. Plywood. 2. Different color polishes. 3. Paints. 4. Glue.

Cost of material:
Tali Wood The wood we chose for our Toys is Tali its cost is about Rs 700-1200 per foot.This wood is the best for toy making its sleek,fine, soft wood with easy smoothing surface. Polishes The polish that cost on toys is rs 500 per litre. We are talking here about good polish which is made of the best quality thinner,spirit,lakh and Varnish. Paints We use oil paints for colouring some of the parts of our wooden toys. The costs of these oil paints are Rs1000-1200 per galoon. Glue We use the finest quality glue which is made in Swizerland ,best in toy making. Its cost is about Rs 300 per Kg. The simple glue in our country costs about Rs 140 per kg

Pest Analysis:
Political factors: 1. Tax Policy We will pay all the taxes charged on us. And will pay each and every tax which is legally imposed on us. 2. Labour law: We will go according to all the laws of the labour. We will strongly follow the labour laws of the country. We respect the rule of government regarding labour laws. We are strongly committed to the child labour laws and employee labour laws and follow the standards of minimum wages and all other related laws. 3. Environmental law: We will never destroy the Environment. Our work is for Wood but we will do it according to the policies and laws of the Government. We get our wood form governmental approved suppliers. 4. Trade restrictions: We will do our business under the restrictions of the government. We will never do an act which is against the government trade rules and regulations.

Economic Factors: 1. Economic Growth: Our business will be able to help in the economic growth of the country . We are hiring many unemployed workers, mostly craftsmen whose work was at a low scale due to the changing trends of the people, we are giving them a chance to do what the do best and get the best for it. We are employing skilled workers. In addition to that we are exporting our products and promoting the art and heritage for our country, it may be small but we are doing the best we can. 2. Interest Rates: Due to a change in the interest policy we are finding difficulties in getting investment for our business, due to high interest rates on loans set by the state bank. 3. Exchange Rates: The drastically changing exchange rates are making it difficult for us to set a permanent price for our products in the international market. But we are trying the best to keep the prices right for our products, in order to do so we have to speculate the rising trends in the rates and set the prices accordingly. 4. Inflation Rates: Inflation is also majorly affecting our business, due to the rising inflation trends it is very difficult to actually set the prices for our products and to keep them at a permanent stat. This as a result is increasing our costs, so at times we have to sell the product by decreasing our profits as well which are already at a low level. Inflation effects everything so the raw material gets more expensive, packing costs, transportation costs and administration overheads also escalate so it is relatively difficult to keep our prices at a good stable state. Social Factors:

1. Health Consciousness: As told earlier our toys are 100% safe no chemical dyes or polishes are used.

All are safe for children. We are aware of the health habits of our customers and we respect them in every possible manner so we make toys that are 100% compatible to the child safety and human health measures. No doubt misuse will have its dis advantages but we have specified age measures and safety precautions on all of our toys. 2. Population growth rate We will make our products according to the population growth rate. As we manufacture toys for mostly children so we have to look into the population growth factor as well to speculate about the demand for our toys. 3. Environment protection We are not polluting the environment, all the garbage or un-used material is disposed of safely according to the safety and international environmental standards. We are trying to help building a good environment for all to live. We are trying our best to play our role in protecting the environment and are making arrangements to meet our objective. We are using recyclable material in our toys to make a greener environment.

Technological Factors:

1. Research and Development activity: We have to know about all the new researches and developments happening in our section in order to compete with the other companies. As technology improves our products, we are using a mixture of old and new to make our product better. We are doing much research on the technological trends for our toys and are doing our best so that our customers get the best stuff.

Environment Factors: Climate Change: Changing climates have a big impact on our toys because good wood tends to be seasonal and we have to get wood at high rates from the market in the winter and the rains season. So we are trying to adjust according to these climate changes by planning in advance and managing material requisition

planning accordingly.

7.0 SELF ASSESMENT FOR QUALITY STANDARDS (NO DECLINE IN QUALITY)
We promise with our customers that there is no decline seen in our quality and we maintain the standards of quality according to the customer satisfaction, because satisfaction is our main priority. We also try to know that the customer is satisfied or not. So we get the input from our customers and design our toys according to the quality requirements of the customers. Our aim is to provide quality products at an affordable price. We maintain every detail without compromising quality. Where technically possible, edges are rounded off to prevent splintering. We make Eco friendly kids toys which are the best for their respective age groups. Meanwhile the government approved wood ensures that

we do the least when it comes to harming our environment.

7.1 Internal quality Control
Wood Requirements • No insect holes, knots upto 5 mm not loose • No splinters at edges Packaging (For items with high number of pieces) Free fall from 60 cm with impact of packaging on different edges and surfaces

7.2 Internal Quality Standards
All stages in our production process are controlled and handled according to strict internal standards to ensure the highest quality standards. The selection of wood must fit our requirements for the color of the wood, insect holes, knots etc. Sawing, planning and sanding fulfill the safety specifications established internally. Gluing, coloring and varnishing is done according to internal principles and technical requirements and maintaining quality standards at every bit. Packaging care about design, information leaflets and labeling is to satisfy our customers and to reduce damage in transporting our goods.

7.3 Quality Features:

1. We don’t use low quality wood and it is perfectly selected natural wood. 2. The paint we use in our product is registered and nontoxic. 3. The packing used in our product is finest and at the standard of international level. 4. Highest quality standards are followed in their manufacturing.

7.4 Future Quality Vision
In the Future we want to make a leap forward in quality by getting us registered according to the international ISO standards for quality and safety to make sure that we continue to raise the bar with respect to quality and continue to provide our customers innovative and best quality products which are certified according to international standards, so the customers get the full value for their money. Never the less we are still maintaining and improving our internal quality standards for these toys at every passing day.

8.0 Process Flow Chart

9.0 Organogram

10.0

Income Statement
Income Statement

Sales Less: Returns Net Sales Less: Cost Of Goods Sold Operating Expenses Operating Porfit Other Income Other Expenses Net Profit 1 2. 3

1000000 25000 975000 650000 160000 165000 17000 2000 180000

3 4

Working

Cost of goods Sold Purchases Frieght Inwards COGS Operating Expenses Admin Expenses Rent Expense Misc Expenses Total Admin Advertisement Sales Comission Total Selling

1 600000 50000 650000

20000 40000 30000 2. 1 90000 40000 30000 70000 160000

Total Operating Expenses
Other Income Sales Discount

2. 2 2. 3 3

17000

Other Expenses Chamber Expenses

4 2000

11.0 Balance Sheet
Balance Sheet
Current Liabilities Current Assets 20000 0 Inventory Cash Bank Non Current Assets 40000 0 18000 0 7800 00 Total Assets 7800 00

Creditors

20000 10000 0 66000 0

Capital And Reserves Opening Capital Net pofit Total Libilities + Owners Equity

12.0 Financial Plan

Financial Plan

2010 Customers Net Revenue 1k 10000 00

2011 2k 20000 00

2012 3.5k

2013

5k 60000 40000 00 00 40000 25000 00 00 50000 40000 13500 13000 0 0 20000 12000 0 0 50000 42000 28320 44350 00 00

Purchases R&D Admin Selling & Marketing Other Expenses Total Cost

65000 0 0 90000 70000 0 81000 0 19000 0

10000 00 20000 11000 0 90000 20000 12400 00 76000 0

Net Income

11680 00

15650 00

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