[A Project Report submitted by in partial fulfillment of the requirements of the degree of MBA (Full-time) of Dibrugarh University and approved by AICTE]

Submitted By: Suman Gill MBA 2nd SEM (A) Roll no-65

Submitted to: Mr. Samannoy Baruah Assistant Professor, NERIM

NERIM Padmanath Sarma Bhawan, Joya Nagar, Khnapara Guwahati-781022

The project report is an integral and a basic part of the education being imparted to students. The submission of this project report is a part of the Entrepreneurship Development course paper in 2nd Semester curriculum of the 2years (full time) course of Master of Business Administration, affiliated to Dibrugarh University, approved by AICTE. Knowledge gained from books is of much help only if it can be practically applied in the real work situation. This project gave me a firsthand experience to apply my theoretical knowledge gathered from the subject, in practical usage. The project entitled “A Project Report on FUN-LEARN” is related to the use of some musical rhymes to be played at the touch of a button in a soft toy.

Preparing a project of this nature is an arduous task and I am fortunate enough to get support and encouragement from a large number of persons to whom I shall remain thankful forever. To begin with, I would like to thank Mr. Samannoy Baruah, our project guide, for his constant support and help in the preparation of this entire project report. I would also be grateful to Mr. Jiten Kalita, the librarian of Indian Institute of Entrepreneurship, Guwahati for his help in guiding us with different books to complete the report. I would also like to thank my friends Priyanka Sharma (MBA, Auro University, Surat) and Azima Parwin (MBA, NERIM, Guwahati) for guiding me with the problems faced in the completion of this project report. And lastly, I would thank my parents who made me realize the power of music in the journey of learning process and the benefits of how it can help in the developmental stage of a child and thus help me in developing the concept of FUN-LEARN.

Signature: Suman Gill . either in part or in full. is an original piece of work and it is the outcome of my own sincere effort and has not been submitted. Suman Gill. a student of NERIM. to any other institute or University for the award of any Degree or Diploma. hereby declare that the project.DECLARATION I. affiliated to Dibrugarh University and approved by AICTE. to the best of my knowledge and belief.



1 .G. Break-Even Point 14. c.S. Form of Organization: 6. 15.1. educational toys. Tinsukia 4. Contact number : 9435745846 9706582191 5. Rate of Return 13. Source of finance 12. Jyoti Gill. Name of the firm 3. Qualification 8. Location : A Project Report on FUN-LEARN : FUN-LEARN : 1st floor. 59. 7. Name of the proprietor 7. Geeta Bhawan. 10. father. Title of the Project 2. mother. is a businessman and Mrs. Makum Road.Gill. Secondary Objectives : a. Work Experience 9.39% : To help growing kids learn rhymes and tables with audio-visual aids in a playful manner. To develop innovative. To improve the learning curve for children through the use of interactive toys. is a house-maker.86% : 48. Primary Objective : Rs. Total Capital Investment 11. 000 : Self-financed : 48. Family background : Sole Proprietorship : Suman Gill : BBA (Finance) :Nil : Mr. b. To create a profitable company.


The second key is to adopt strict financial controls. The likelihood of success of Fun-Learn will be ensured by its strong management team. the soft-toy and jigsaw puzzle are fun to play with. 2 . lead by the entrepreneur and also the need to develop and make effective use of idle brain of a developing child. educational. While all the products are educational tools that develop core skills within the youngster users.2.. a fun toy that has a sound chip installed in it which has been customized in such a way that rhymes get played when this toy is pressed hard. Fun-Learn will be profitable by the end of year one and will have a steep increase in sales for the first several years. The third product is a jigsaw puzzle. The second market segment that will be addressed is wholesale purchasers. thereby encouraging tots to use them often. typically organizations that are purchasing the products for their clients to use. The organisation has been founded by Suman Gill and is a sole trading concern. a device that resembles that helps in better eye-hand co-ordination and also helps in developing the problem-solving skills in the child. Fun-Learn has identified two customer segments that it will go after. Fun-Learn has identified three keys to success that are instrumental in the sustainability of the business. The second product is Fun-Disk which helps children quickly conquer the alphabets as well as learn tables and rhymes with the help of animated videos. These are parents or grandparents who will be purchasing the product for their child or grandchild. engaging toys. These organizations are typically some sort of care center or nursery/preschool. The first group is individual customers. The first is a Soft-toy. Fun-Learn is initially offering three different educational toys.1 INTRODUCTION Fun-Learn is an exciting start-up company that has developed a line of educational toys and tools for children that are fun and engaging. effectively creating a feedback mechanism for product improvement. Number one is the need to develop creative. The last key to success is the need to listen to customer.

Fax machine. Assorted equipment for manufacturing soft toys with sound chips such as threads..   3 . glue.5 START-UP REQUIREMENTS The following items will be needed for the start-up of the business:  Office supplies and equipment for five employees including desks. 2. No Objection Certificate from landlord 2.4 LEGAL FORMALITIES & DOCUMENTS The following are the legal formalities and documents required by the company: 1. telephones. cubicle dividers. compact disks for fundisk and thick poster board. Assam. computers. coloured picture papers. laptop. maps. fabrics. 2. scissors etc.2. printers.2 ORGANISATION OWNERSHIP The organization is solely owned by Suman Gill. sewing machines. ft 1st floor of a commercial building named “Geeta Bhawan” of at Makum Road of Tinsukia district. needles. Trade License from Tinsukia Municipal Corporation 2. customized sound chips etc. It has a good road transportation facility to all the neighbouring towns and districts and also the place is located near the main market from where raw materials can be easily bought as and when required.3 ORGANISATION LOCATION The organization’s office is located in the 1200 sq.


2.3. 20 nursery rhymes and 10 multiplication tables. alphabets to be arranged sequentially as well as posters of various cartoon characters cut out in shape. The child can play with the soft toy as well as listen to the rhymes by hitting the toy once. In case. Twinkle-twinkle little stars) will be imbibed within the soft toys which would look like baby bears. 3. Hickory-Dickory. Sound chip imbibed soft toys: Soft stuffed toys will be manufactured with smooth fabric and a customized sound chip with pre-loaded nursery rhymes (Jack-and-Jill.1 PRODUCT DESCRIPTION Fun-Learn wouldl go for producing three types of products which are as follows: 1. Jigsaw puzzles: These are jigsaw puzzles for kids with the solar system. maps of different countries cut out in shape of the various states. it can do so by hitting the soft toy thrice. 4 . rabbits and dogs. the child wants to stop playing the rhymes and just play with the soft toy.Dock. Fun-disk: These are compact disks with animated videos showing cartoon characters in a funny way that would help children learn the English alphabets.

Sound Chip imbibed Soft toy: a. Then we need to pin it on the fabric and cut out the fabric and make two equal pieces of fabric which can be sewn together. Sew the hole after you are done. You can further accessorize your bear with sunglasses. inside out. and start sewing the pieces together along the edges while leaving a hole for stuffing it with cotton. Stuff more than required. Now we need to cut out the paper adhering to the shape. If you want its neck to look classy. You can also cut colored papers and stick in the inner ear of it. d. Take the reverse side of the fabric. jackets.2 PRODUCT MANUFACTURING PROCESS 1. i. c. pants as per your choice.3. we have to draw a freehand outline sketch of the desired teddy bear on a piece of paper with the marker. b. Now fold the exposing side out and start filling it with the quilting cotton along with the customized sound chip. Use black beads or colorful stickers in place of the eyeballs to add life to the toy. It will be our guideline pattern. e. add frills or ribbons around it. Always choose contrast colors to your fabric. hats. First.e. SOUND CHIPS SOUND CHIP IMBIBED SOFT TOY .

Fun Disk: To make these customized fun-disks.2. blank disks shall be bought in lot and self-animated videos of nursery rhymes and multiplication tables shall be written on these CDs and will be lauched as an audio-visual learning aid for children. NURSERY RHYMES MULTIPLICATION TABLES .

Then cut the paper image to fit the piece of poster board/cardboard/balsa wood. cartoon characters. White school glue with the required brush applicator shall be used to affix the paper image to the top of the puzzle. to make the puzzle we need to first decide upon the outer shape of the puzzle--do a circle. Now. First. we shall opt for a thicker piece if working with cardboard. square or curvy shape g. we need to gather a pair of large. Old. but slightly less expensive with the corrugated cardboard. i. h. balsa wood. sharp scissors that will easily cut through the board with precision. d. animals or even the universe. e. or find an old cardboard box to work with. Select a thick piece of cardboard approximately 1 square foot in size and 1/8 to 1/16 of an inch thick. Jigsaw Puzzles: a. we need to purchase thick poster board stock from a graphics or hobby supply store. The job will be easier with the poster board or balsa wood. then smooth over evenly.3. b. worn out scissors will make the job sloppy and potentially difficult. POSTER BOARD c. Next. The image can be a map. Allow the glue to dry for at least an hour before attempting to cut the puzzle into pieces. a pen knife may work best. 7 . Now. Carefully place the image atop the base. For more intricate pieces. we need to choose an image to apply to the top of the puzzle-in-the-making. Adhere the precisely cut image to the cardboard or wood by lightly coating the base with an even layer of glue. f. Next. scenery.

Cut pieces with your knife or scissors. Do this slowly and carefully.j. l. It may help to begin with a grid. PUZZLE OF THE WORLD MAP PUZZLE OF ALPHABETS IN THE PICTURE OF A HORSE . k. Draw or stencil over the image of desired puzzle pieces/shapes. The desired jigsaw puzzle is ready.

words.3. It connects the left and right sides of the brain allowing for communication between both hemispheres. it thinks in images and colours. It thinks in intuitive way rather than logical way. The right brain is the creative part. The corpus callosum transfers motor. with the help of music. The better the co-ordination between both the parts of the brain the better is the retention and concentration power of the individual. sensory. language. and it can remember complex pictures and songs (music). It controls speech. The left brain and the right brain exchange information through corpus callosum. The left brain is the logical part.4 PRODUCT BENEFITS The human brain is divided into two parts-the left brain and right brain-which are specialized in different modes of thinking and perceiving. Both the parts of the brain are connected with the help of dendrites. videos and images can both see images and videos as well as listen to music and increase the working of the right and left part of the brain and thus enhance his/her retention power by increasing the dendrite branching between both the parts of the brain. 9 . A child with a higher dendrite branching in his/her brain is more likely to excel in all fields of life. The corpus callosum is a thick band of nerve fibers that divides the cerebrum into left and right hemispheres. Fun-Learn is a product that aims to develop the co-ordination between the left brain and the right brain of a developing child who. It is methodological and tends to think in step-by-step logical fashion. and cognitive information between the brain hemispheres. These two half brains do not work like separate department but in an interconnected and collaborating way. The left brain controls the right part of the body and the right brain controls the left part of the body.


which shows that the market is becoming more favorable towards the Indian manufacturer. This is due to the high rate of population growth and the increase in GDP and personal incomes. especially in the context of the growing middle class and the increasing willingness to spend money on luxury goods. When parents buy the product. increasing awareness about the health hazards caused by these toys has forced people to away from them slowly.5 per cent of the global market. India itself has more than 800 toy manufacturers. The Toy Association of India estimates that about 90 per cent of the Indian toy industry belongs to the non-organized sector. monetary value changed and educational or creative value. exporters and suppliers. However. giving them a holistic growth. the market was flooded with imported and cheap toys from China. But. 10 . 4. Also. which means that 60 per cent of the market is handled by Indian manufacturers and foreign companies with subsidiaries in India. (b) The parents or guardians: This is the group that actually pays for the product but may not be the end user of the product.4. People are getting more aware of the importance of toys in shaping various aspects of children’s development and hence. The Indian toy market is on the highway to growth and has the potential to become one of the largest toy markets in the world. Earlier. ease of use.2 MARKET SEGMENTATION The customers or end users who buy their products are basically of two types: (a) Children: Children are the end users for most of their products. This group mainly looks for fun and appeal of the product. it may be for use by their own children or as gifts to other’s children on various occasions like birthdays. the growth of around 15 per cent promises to rapidly raise this figure.1 MARKET POTENTIALITY The Indian toy industry is estimated at about 850 million US dollars and until now has generated only 0. Retailers have now started giving more shelf space to Indian products replacing the Chinese ones. They mainly look for simplicity of understanding. They play an influential role in the buying decisions.

The company will be following this system in the future too. Product: The product range consists of 3S products. The second noticeable thing about these products is their perceived and pay value. By recognizing and exploiting its core competencies. The third strength of the products is their packaging and designing.3 TARGET MARKET Strategy adopted by the company is based on three important modules: Product. This ensures their prices to be quite competitive compared to the product quality they offer.4. These distributors will be responsible to distribute and market their products in their specified territories. Place: Local markets: For the Indian markets they will follow the current system. Slowly they will introduce new clients in unrepresented areas as distributors till their products are available in almost all cities. All these factors put together make their products noticeable on the shelf and fulfill their basic purpose. that is appointing distributors in various cities across the country. 11 . Price and Place. Price: The pricing system is cost plus mark up. which indicates the monetary value of the item. This will be for the unorganized and small/local retail shops only.4. These products have a very high standard of quality which is above the market average. This kind of distribution will ensure maximized distribution and also make sure their products are available and pushed through all the retail shops.4 STRATEGY AND IMPLEMENTATION 4. Fun-Learn will quickly gain market share as well as develop a reputation for making effective teaching toys.1 COMPETITIVE EDGE: Fun-Learn will leverage its educational competitive edge to produce educational toys that are fun to use and at the same time successful at building important skills for youngsters. For the large format stores and malls they will distribute directly. 4. They have got EN-71 73 certification for the products.

Fun-Learn will use advertisements and direct mailings. Cobble Hill Puzzles 2. Magazines will be used for the individuals market and a combination of magazines and journals will be used for the businesses segment.4. This is especially important as businesses are generally repeat customers. it is Fun-Learn's goal that the businesses are not just buying one or two of the products but that they are buying all of them addressing different skills. The sales strategy for individuals is to create enough awareness of Fun-Learn so that customers are asking their retailers to carry Fun-Learn for them. The marketing strategy will recognize and account for the fact that there are two distinct customer groups that must be attracted. The advertisements will be placed in magazines or journals chosen specifically recognizing who the target audience is. This is an important message because parents will want their children to play with this type of toy. 4. meaning that if the customer is happy with the product. Loyal Group Nursery Rhymes 12 .4. FunLearn recognizes that the groups are very different regardless that they are buying the same product. The element of "fun" in the product is used to keep the children engaged in the product.3 SALES STRATEGY The sales strategy will be tailored for each customer group. Ankidyne Soft Toy Manufacturing Company 3.2 MARKETING STATEGY The marketing strategy will emphasize the fact that Fun-Learn's products are truly educational devices that are fun. it is more than likely that they will become a longterm customer and not look for new vendors. To address the business segment. To capture the awareness of both groups. 4. all of which are important.4.5 MAIN COMPETITORS 1. something often difficult to do with most educational devices.


This proposed project can be said to be legally feasible as it has taken all necessary permissions for carrying on the operations so as to run a hassle-free business.2 ECONOMIC FEASIBILITY For any product if the expected benefits equal or exceed the expected costs. 5.4 LEGAL FEASIBILITY It includes study concerning contracts. Whether the required resources are available or not. Whether there will be resistance from users that will affect the possible application benefits? Now. Once the technical feasibility is established.1 TECHNICAL FEASIBILITY In technical feasibility the following issues are taken into consideration:   Whether the required technology is available or not. cost benefit analysis is done in which expected costs and benefits are evaluated and after evaluation it has been found that the proposed project is economically viable.3 OPERATIONAL FEASIBILITY Operational feasibility is mainly concerned with issues like whether the product will be used if it is developed and implemented. 13 . since the product will help the upcoming children in grasping knowledge in different ways and also help them in its retention due to the use of several audio-visual aids and also effective hand-eye coordination. 5. the project can be considered as technically feasible and its economic feasibility can also be checked upon. and legal other traps. it is important to consider the monetary factors also. the product can be judged to be economically feasible. Since the proposed project does not require any high technology for bringing up its products. violations. Economic analysis is used for evaluating the effectiveness of the proposed product. liability. the concept is operationally feasible. In economic feasibility.5. 5.


have set up this venture. she has always dreamt of bringing up something new that would be helpful in the primary education system in the country. With this motive in her mind. she along with 4 other employees. 14 .Fun-Learn have been founded and will be run by Suman Gill. 1 employee will be required for making the jigsaw puzzle and the owner of the concern will animate the required videos of rhymes for its product. She has also acquired a certificate course in animation. A business administration graduate from NERIM (North Eastern Regional Institute of Management. Fun-Disk and 1 employee will be responsible for bringing in the raw materials and also for selling the products to wholesalers and retailers. would be solely managed by her. She has brought in specific and valuable skills to the venture. 2 out of 4 employees will be engaged in making out the soft toys and imbibing the pre-loaded customized sound-chips in these soft toys. thus. The organization is a sole proprietorship concern and. Guwahati).


Fun-Learn would require 5 employees to run the organization smoothly. 2 persons for sewing the soft toys 2. 1 person to animate the rhymes and multiplication tables for Fun-Disk 4. 1 person to help in office chores. bring the raw materials from market and will be responsible for sales and distribution 15 . It would require: 1. 1 person to make the jigsaw puzzles 3.


5000 per month b.Rs.Rent at Rs. 1000 d.000 + 1000 +1500)} i.500 8.chairs.) 8000 6000 Total (Rs.000 45.) 8. 1 2 Salary per month(Rs. Rs.45. Cost of tools (scissors.000 6.1 Fixed Capital a. Employees Manager/Animator Sewing machine operators/ soft toy makers Puzzle maker Sales person Total 1 1 5 16 6000 6000 6. Machinery and Equipments SL NO.07. {(5000*12) + 40.000 No.000 22.000 + 60.000 + 45.000 60.Rs.e.fans) Total Fixed Assets Price Rs. Total Non-recurring expenditure: Rs.000 .2 Working Capital (per month) i. 40. Office building. 1500 e. 2. Electrical and Installation charges. saw etc) .000 12.8.000 1. 1 2 3 Description Sewing machines (2) 1 laptop and 1 printer Office Furniture & Room Furnishing (Computers table / Office table.000 c.

Transport c. Working Capital for 12 months = Rs. plastic sunglasses. Commission to distributors d.10) f.00 4. Total Recurring Expenditure (per month) = Rs. 1. Soft toy accessories: black beads.600 3. Glue (10 @ Rs.000 500 1. 6.10) Total Cost of Raw Materials iii.200 + 14. Fabric c.000 1.000 + 15.500 14.000 100 15.000 5. Raw Materials (per month) a.500 1. Compact-disks (360 @ Rs.200 v. ribbons e. Other items of expenditure (per month) a. Other miscellaneous expenses Total Other expenditure Rs.200 Rs.15) g Cardboard (100 @ Rs.10) h. (12*51. 400 . Paper b. Cotton d.000 iv. Stationery f. Sales expenses h. 5.200) = Rs.000 1.500 1.000 1. 51. 14. Electricity b.000) = Rs.500 3.ii.500 1. Poster board (200 @ Rs. Telephone g. (22. Rent e.000 2.

7.000 Rs. 45.900 [NOTE: It has been presumed that depreciation rate is to be 10%] 8. Fixed Capital ii. Rs. of working days (b) Qty produced per year (c)=(a)*(b) Rate (d) Total (e)=(c)*(d) Soft-toy with sound chips Fun-Disk Jigsaw puzzle 4 10 2 278 278 278 1112 2780 556 600 100 80 6.000 Rs.78. 6. Depreciation on machines and equipments@ 10% iii.90.000 44. 400 Rs.100 18 . 6.3 Total Investment i.500 6.900) =Rs. Depreciation on furniture and fixtures @ 10% Total Cost of Production (per year) Rs. 8.000 8.200 2. 59.14. 3.480 9.14.000 8.4 Cost of Production (per year) i.5 Turnover (Per Year) Product Qty per day (a) No.28. Working Capital Rs. Net Profit (per year before taxes) =Turnover-Cost of Production = Rs. (9. Total Recurring Expenditure ii.000-6. 000 Rs. 1.90. 6.67.

39% 8. Rate of Return = (Profit per year/Total Investment)*100 =(3.64. 14.8.com 19 .61.000/699600) =48.www. Prakash Bazar.alibaba.7 Financial Assessment i.100/9.61.100) =(3.000)*100 =48.8 ADDRESS OF SUPPLIERS i.USHA store.000 =Rs. Raw materials-NAVNEET stores.*100)/(3. Machineries and equipments. Sound chips.50.38. Tinsukia iii. 60.86% iii.61.47% ii.39. Break-even Point = (Fixed Cost *100)/ (Fixed Cost + Profit) =(3. Tinsukia iv.000)*100 % =36.000 Total Fixed Cost=Rs. Fixed Cost Depreciation =Rs. Daily Bazaar. Makum Road. Laptop .500+3.500 Rent Salary =Rs.SONY COMPUTERS. Tinsukia ii. iv.100/7. Net Profit Ratio = (Profit per year/Sales per year)*100 % = (3.


Fun-Learn’s product aims at increasing the concentration and retention curve of a developing child with the help of images.Fun-Learn is a sole proprietorship concern that produces educational toys and interactive disks that can help a child in their developmental stage. 20 . music and visuals so as to increase the dendrite branching between both the parts of the brain and successfully help the children to have fun as well as sub-consciously learn new things in a playful manner.

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