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Furfect Pet Store
Introduction We have named our business
Furfect Pet Store
Locality of the business Furfect Pet store is located on University road near Tehkal and is situated on main G.T. road. Nature Of Business
We provide people with all kinds of pets ranging from animals to birds and fishes. We also provide veterinarian services for the animals. We also provide decontamination, cleaning and trimming services for your pets. Our products include pets, pets accessories and synthetic cloths and products to replicate the effects if fur for medicinal services.
Our mission is to provide Peshawar cantonment and university area with a great selection of high quality Pet, Pet Products and Pet Foods at the best price possible. And to not only give people a loyal companion but a 24 hour on the go therapy treatment mechanism.
Provide the Khyber Pakhtunkhuwa province with the highest quality pets and supplies, expert advice and veterinarian services while providing a friendly and fun work and shopping experience. And to create a brand name that people remember pets by the name Furfect Pets store.
Live healthy with loyal companions
Furfect Pet Store offers pets and services for pets. we provide clean, healthy and decontaminated pets that often prove to be worthy and loyal companions. Our clients are pet loving people. We also satisfy needs of people who are looking for means to reduce tension, blood pressure and stress with therapy method without the use of medicine. We also offer a variety of pet care services 24 hour a day– all in the environment that is healthy for Pets. In Pakistan the pet store business has not flourished that much and need new innovative minds and ideas to set a strong market in the coming years. Our market research has shown that around 6 out of 10 people like pets and are willing to buy them. Furfect Pet Store’s marketing strategy is to emphasize on quality, health and cleanliness of pets and their owners. Providing all necessary precautionary measure for pets and owners. Owner will evidently find happy, friendly companions who have already been trained welled and are healthy, loyal and loving. All pet services will be provided by staff trained in animal care. We are only starting up as Pet Store, pet clinic and pet accessories suppliers. We plan to start up a 24/7 pet ambulance service in the next two years. We will start-up an online store with free delivery services in the next five years.
From the authors
Description of the business Products
We sell different breeds of animals, birds and fishes. We also sell pet supplies, accessories and a synthetic cloth and product created from it that replicates the effects of animal fur.
We provide veterinarian, training, trimming and decontamination service for pets.
The owners are all young, energetic and innovative business students who are related to the different field of business studies. 1. Ahmed Ali Syed the first unlimited partner is good at managing personnel and is related to the field of human resource. 2. Syed Mehdi Uz Zaman Gillani is the other unlimited partner with no say in the business he is the inactive partner only providing the finance and is related tti the field of finance
Waqar Ahmad the first limited partner is also related to finance and is also the chief finance officer for business
4. Tayyaub Khalid the last partner is the head of marketing & sales and is also affiliated with that particular field
1. 2. 3. 4. 5. 6. 7. Earn favourable profits Create a brand name that is known to all Create awareness regarding pets and their advantages Move government to create animal protection laws Provide pet care services Make pets legally a mode of therapy for tension To create synthetic clothing that reproduces effects of animal fur. (for animal with allergies to the animals) 8. Providing products for animal safety, feeding and housing. 9. work for strict punishment to animal offenders
Organizational Plan Legal form of the business
The business is legally a limited liability partnership. With Ahmed Ali Syed and Syed Mehdi Uz Zaman Gillani are the unlimited partners and others are limited partners and have limited liability.
Ahmed Ali Syed has initially invested 5 lack rupees along with land and building under his ownership, and while Syed Mehdi Uz Zaman Gillani, Tayyaub Khalid and Waqar Ahmad have also invested 5 lack rupees each. So our initial investment is 20 lacks. 15 lacks will be used up in starting the business and will be used in procurement of animals, machinery, initial staff, brand name, office furniture, stationary and shop building. While the remaining 5 lacks will be used as contingency capital , for promotion and marketing purposes.
Continuity of business
Continuity exists within the business. The business will not finish If • Any limited partner dies: his partnership rights will be transferred to his legal heirs, or if agreed upon his investments along with his claims in profit will be paid and partnership rights will be bought from his family. • Any limited partner withdraws: his equity claims will be settled and he will be released from the partnership • Any limited partner sells his equity claims: this must be done by the consent of all the other partners and all the partners must be asked to buy that claims before they can be sold to any third party
In case of unlimited partner: the business has no continuity in case the unlimited partner dies or the he wants to withdraw his claims due to some feud.
• Land is already under the ownership of the unlimited partner and capital will be required to furnish and make it up to the mark needed to be a pet shop. • Animal trainers, handlers and veterinarian will be hired and capital will be required for job publication and hiring. • The machinery is to be transferred from Karachi or is to be imported as it is not available in Peshawar. • The animals are to be brought from different region and maximum of 15 lacks rupees are required for their procurement
The Furfect pet store will be management by a decentralized board of owners. Syed Mohammad Hasnain Gillani (formerly a factory owner and having more than 35 year experience in the market) will be the president and chief executive officer while Ahmed Ali Syed will be the head of human resource, Syed Ameer Uz Zaman Gillani (formerly a factory owner and having three year of experience at management) will be the chief operations officer, Tayyaub Khalid will be chief marketing officer and Waqar Ahmad will be chief finance officer.
Chief executive officer
Chief finance officer Accountant
5 Consumer of Human Head Chief marketing Sales Sales consultants resource officer manager person and
Chief operations Animal Animal officer trainers handlers
Marketing Plan Marketing Research questionnaire responses
R s o dn r s o cs ep n e t epne
De ite fin ly
May be 29% Definitely 58%
Ma b ye No
We conducted a marketing research to know the needs and perceptions of the customers about the sales of Pets. This was necessary as it gave us a primary look into the market and whether any such business should be undertaken or not. A solid 58% of our respondents showed favourable result, well 29% of the respondents were undecided and 13% of the our respondents were against our idea.
Why to buy at the Furfect pet store?
Furfect provides the best available breeds of animals kept in safe and clean environment. The animals sold at Furfect are well trained. We at Furfect provide all precautionary guideline to customers regarding their action near animal and also provide animal handling guide and proper education. We consider our customers are king and provide an environment which they can relate to. We provide veterinarian services, trimming and addition services for pets. A regular check-up date is fixed to keep the animal in perfect health for our customers. We also provide a 24 hour home delivery service and plan to start an animal ambulance service in future.
Porter’s Five Forces Model
Analysis of Competitors
There are a few competitors in our business and none of them are widely known. Competition in a little stiff in the animal clinic category as there are a few animal hospitals and namely one or two animal shops. There is also a high profile bird market in Kohati area which might prove a testing competitor for us. There are two main competitors for us in the Peshawar market.
The medical hospitals that provide veterinarian services and animal medicines and vaccination. Animal hospital and clinic (10-Jawad Plaza, Pajaggi Road BachaKhan Chowk Peshawar, Pakistan).
B. The other competitor is the bird market of Kohati area which has a very strong hold on bird sales and bird related accessories.
Competitors Table Details Products &Services Competitor A Animal clinic and veterinarian service Competitor B Provides birds and birds accessories to about 90% of Peshawar market High prices & good quality but the monopoly has helped them dictate their own prices with high profit margins for too long A usual pamphlet is issued to promote one entrants into that market but word of mouth is the main promoter for that market They deal in birds that are commonly liked and are bought on daily basis
The prices are low but the quality is second to none. They don’t really care about animals and they are not treated well by the doctors. They don’t really promote themselves and is the main reason for lack of public knowledge about them They have specific users and provide a colt like experience to them their customers are satisfied with them. The lack of quality in services and lack of quality doctors is their biggest weakness
High price and a flair of fraud to trap innocent customers has created some bad repute for them in their market
Analysis of Customers
Our customer frequent for common animals but are rare for special animals. This mainly due to the price difference between them. The customer doesn’t have much power in this market and business usually enjoy monopoly. The customers are weak and don’t have much say in setting up the prices.
Analysis of Suppliers
Our suppliers are the licensed importers and exporters of animals having the full rights to sell all the breeds that are bought by us. Our suppliers are usually the foreign exporters of animals. We also remain in close contact with the local exporters trying to buy fully licensed special breeds of animal that can be sold to our customers.
Threat of New Entrants
This market is a undiscovered market of possibilities in Peshawar and the threat of new entrants will be at its maximum once a business is fully established in this market. The new businesses will be opened as the market becomes profitable and attractive.
Threat of Substitute Products
The substitute products though present have little fame among the people nad pose no real threat to our products.
The company’s situation analysis is based on the customer, competitor, context, and segmentation and targeting. Furfect pet store is going to start its operations for the first time. Based on data gathered through marketing survey conducted using questionnaires the ideology behind Furfect has gain mainly positive feedback from the target customers.
We are the first fully functional business of pets in Peshawar, having a clear vision in mind. We are only providers of pets and pet related services. We deal in variety of breeds and also import on order. We also provide therapy treatment mechanism for the blood pressure patient. And design products for the blood pressure patient who are allergic form animals.
• Our primary customers will be people who love pets • We will also focus on people who suffer from tension and hyper tension • We will try to create customers from people who are undecided about pets and have a soft spot for them
Political and legal context
Pakistan is suffering from political instability and which has created import hurdles. The focus has mainly been on improving political structure and thus legislations regarding animals have been overlooked.
Economy is unstable and major inflation has led to higher prices and costs. This instability has given an excuse to the external investors who have taken out their investments a have left a huge gap in market leaving the business environment very fishy.
The dominance of Islamic ideology regarding the infectivity of dogs has created a major misconception about other animals too and people are afraid to buy pets. Also the people who have pets are considered to be dirty which leads to people disliking pets.
Though a little slow to adapt to technology at first, now the Pakistani technological environment is growing very fast. The required technology will easily be available in metropolitan cities and thus can be imported to Khyber Pakhtunkhuwa.
We will target Peshawar cantonment and university area and will increase to city and to whole Khyber Pakhtunkhuwa province overtime. Upper-Middle class and Upper class Male and Female Age 14-60 (teenagers, youth and adults)
Pets are a vacuum market with no companies to fill customers’ needs. The market is there to be taken and we are taking the first initiative. A certain kind of dissatisfaction exists among tension and blood pressure patients regarding heavy medication taken by them. Pets; as several researches suggest; can be used as therapy treatment to reduce and control tension and blood pressure constantly.
1. Animals for security 2. Animals for companionship
3. Animals as a hobby 4. Animals as a status symbol or some other unconscious desire 5. Exotic animals
Animal replacement for treatment and therapy for blood pressure patients
Almost 86% of market has favourable view of animals and want to buy animals that are bred in a clean, green and decontaminated area. There is a superstitious that animals are “naajis (impure)” which is not the case except for dogs. But dogs can be kept as the guard or hunters.
SWOT Analysis Strengths
Extensive market knowledge Availability of many kinds of animals, bird and fishes Providing extensive services to customers A one stop, pet all needs facilitating, shop.
Creative and innovative pets alternative products as a mode of therapy
Access to foreign markets and legally imported pets
No training in animal handling, just personal experience Expensive imported animals
Lack of trend of pets Initial investment relatively high Expensive technology import
The fur alternative is created from a special sheep skin called QARAQUL. and fur fabrics which are expensive and limited
Creation of awareness among people Can extend market to more parts of Pakistan Add many new animals to our product line
Create a market in pet accessories
Animal smuggling Political instability in the region
Increasing import duties
Lack of proper technology
The 7 Ps of marketing Product Price Perception Placement Promotion People Packaging
Product (marketing offer)
1. A wide variety of animals 2. A big collection of birds 3. Many exotic fishes 4. Synthetic clothing as fur replacement for therapy 5. Animal accessories 6. Veterinarian services 7. Trimming and cleaning services
Affordable for local pets with animals priced below Rs. 10000 (excluding rare breeds) Expensive imported pets ranging within Rs. 15000-50000 (excluding very rare breeds)
3. Price division on the basis of different animal 4. The price varies for different breeds too
(the price includes import duties and taxes)
We will place our products as higher class brand in the minds of our customers and as a quality brand in the market, which emphasizes on quality, cleanliness, health and affordability.
1. Our outlet will be in Peshawar university region which in our perception is the perfect placed for our business to flourish 2. We will extend our outlets to Saddar and city region in the next three years 3. After 5 years we will open outlets in all major cities of Khyber Pakhtunkhuwa
Billboard Pamphlets The Rampage Co has printed catalogue & business portfolios for the promotion of our brand and products.
• Five animal trainers and managers • A veterinary surgeon and an accountant • two Sales handlers • three customer consultants and educators each
A clean aquarium for fishes
Cages of all size with new designs for birds
Small and large cushion filled basket s for the animals
• The marketing will seek to develop interest and awareness of its products to the customer.
Furfect pet store offers best, healthy and clean animals. We will provide state of the art services free for first two month of operations.
• News paper advertisement and pamphlets will be floated. • Will buy air time on major radio station like fm-101 and radio Buraq 104 • An internet webpage will be created
By proper advertisement and publicity pet awareness and demand will be created for the pets and products.
The minimum revenue of Rs 700000 will be generated semiannually with our own profit a mere Rs 70000. We have let our profit margins low because we want to achieve a higher market share and gain satisfied and loyal customer. Our financial managers have calculated a market share of 76% in Peshawar in the next year or so. Which is more than Three fourth of the whole market.
These will give us a view of how our business will perform in near future. Furfect pet store’s financial earnings will help us to demonstrate the breakeven point, enable s to forecast sales and expenses.
Break even analysis Assumptions
Average per unit revenue = PKR 9000/20
Average per unit variable cost = PKR 3600/Estimated semiannual fixed cost = PKR 300000/-
Break even = fixed cost / Revenue - variable cost Break even = 300000/ 9000 – 3600 Break even = 55.56
The sales forecast of Furfect pet store the revenue that will be generated in the next two semi-annual accounting periods. The pet store analyzes the sales according to different breed’s f animals that will be offered i.e. Local, Imported and Very special breed. Sales Local Imported Very special Total sales 2011(July- Dec) PKR 650,000 1,455,000 1,750,000 3,855,000 2012(Jan - June) PKR 490,870 2,100,000 1,820,000 4,410,870
Cost of Goods sold
cost on acquisition and maintenance Local imported Very special Total cost of sales Apr’11-Sep’11 PKR 124,300 562,794 1,260,000 1,947,094 Oct’11-Mar’11 PKR 216,000 520,788 1,508,500 2,245,288
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