Professional Documents
Culture Documents
First of all we would like to thank Almighty Allah upon the successful completion
of this report. We express sincere thanks and unbounded gratitude to Madam
Mona Javed for her direction, assistance, and guidance. Special Acknowledgment
should be given to our colleagues and friends, who were very kind and
encouraging, guided and provided help throughout the study. It was team effort
that made the work successful.
Pak Solar Energy Systems
Commercial Avenue, Khayaban-e-Itehad, DHA Phase-II,
Karachi.
Tel#+92320666778, 111-021-021
Email: PSES@yahoo.com
Web: www.pses.org.pk
Co-owners:
Sidrah jamil, Ibad-ur-Rehman, Khawaja zain Riffat, Syed Aslam Badshah, Haris Shoaib,
M.Jahangir Khan.
PRODUCT
Solar Lantern
SERVICES
Installation Service
Product Customization
After Sales Service
CUSTOMERS
City Government
Corporate sector
Individuals
COMPANY MISION:-
To provide electricity to the citizens of Karachi with the help of solar power; and to remove
problems faced by people due to load shedding.
P.S.E.S has assembled a creative management team who will be multitasking in the company.
We have a General Manager handling the functioning of the company. Another person will be
responsible for all of the finance and accounting functions. Haris Shoaib is the Purchasing
Manger, in-charge of keeping track of inventory control and coordinating with suppliers and also
the responsibility of recruitment of employees. IT/Marketing Manager who will be controlling
the marketing side of our products.
Most importantly is the financial success, which will be achieved through our strict financial
controls.
We are starting manufacturing solar product locally after three years for that purpose we hire
1000 sq yard place at Korangi Karachi. Equipments and machineries are purchased by taking
loan of Rs. 10 million from MCB bank Ltd.
Additionally, the success of the business will be ensured by offering high-quality service and
extremely automated system. P.S.E.S will also be making use of aggressive marketing
campaigns, the details of which can be found in Marketing Plan. Ongoing marketing efforts will
include newspaper ads, brochures and through cable operator.
P.S.E.S ensures fair and equal profit for its owners and is a rewarding place to work for its
employees. At P.S.E.S creativity is highly valued, and customers are encouraged to give in their
feedback after installation process. Thus P.S.E.S will be targeted as a unique energy system that
provides high quality service and extremely automated structure.
Acknowledgements
Introduction To Venture
Executive Summary
Company Vision
Company Mission
Industry Analysis
Analysis of Competitors
Description of Venture
Products
Service
Size of Business
Background of Entrepreneurs
Production Plan
Manufacturing
Physical Plant
Operation Plan
Name of Suppliers
Marketing Plan
Customer Analysis
Company Analysis
Competitive Analysis
Contextual Analysis
Product
Place
Promotion
Pricing
Organizational Plan
Form of Ownership
Terms of Agreement
Capital Requirements
Assessment of Risk
The results of this polling clearly tell that majority of the people living in Karachi are facing a lot
of electricity problems and getting solar energy is the most preferred solution to get rid of this
major problem. This indicates the trend that is being followed and will continue in the future.
All of these companies that have been listed above, providing different type of energy system in
Pakistan. An important consideration is that they have multiple products for their consumers.
Their importance to the consumers varies according to the customized preferences of the
consumers coming there. Some go for the quality of energy system, some prioritize safety and
some automation whereas, some consider pricing of the systems.
The analysis has shown that the largest market share is occupied by power tech international
group. The power tech internationals groups are having the major share in the market and are
playing the major role in providing solar energy system.
If solar power is looked at through a long-term lens, you will eventually make back what you
originally spent, and possibly start saving money on your investment
Let’s not forget that solar energy increases the value of your home too. Solar power is not
subject supply and demand fluctuations in the way that gas is. Silicon, the primary component of
solar panels, is also being more widely produced, therefore, less and less expensive with each
passing year.
Solar power is independent. This is great because you can supply your home with electricity
during a power outage. Solar power can also be used in remote locations, places where
conventional power can’t be reached. On a larger scale, solar power also reduces our need to rely
on foreign sources for power.
And last, but certainly not least, it’s good for our planet! Solar energy is clean, renewable and
sustainable. It does not fill our atmosphere with carbon dioxide, nitrogen oxide, mercury or any
other pollutants. It is a free and unlimited source of power, unlike expensive and damaging fossil
fuels.
Products:
Solar Portable
Power
SERVICE:
Installation Service
Product Customization
After Sales Service
Installation Service:
Installation of our solar product will be done by our own specialized technician on a reasonable
rate. According to our marketing strategy, initially our installation charges will be 50% less than
the actual.
Product customization:
After sales service will also be provided by our company, Customers who have any problem
from our product can register their complaints on our toll free number.
Splits, Chairs, Tables, Wood Cladding, Lights, Fans, Computer, Telephone and Stationary Items
Background of Entrepreneurs:
All the partners of the business are business graduates.
All the partners will be contributing financial resources towards the establishment of the
business. All are equally liable for the business.
Manufacturing:
Initially we will import solar product from China and Germany and assemble them locally for a
period of 3years then we will start manufacturing locally. We will see the demand of product and
according to them we will manufacture product.
Physical Plant:
We decided to hire a place of 1000 sq yard at Korangi road Karachi to start our factory there,
reason for choosing Korangi is that it would be less costly as we are paying RS. 960,000 per year
rent comparatively less as compare to other places.
We will take loan from bank of RS. 1,000,000 and purchase equipments from China and fix
them in our factory. It would cost cheap as we are purchasing equipments and machinery from
China.
The name of the suppliers of the raw materials will be decided when we start manufacturing
solar products locally. But we will also import raw material from China and Germany.
The main company operation is to assemble the parts of solar energy products. Installation of
these solar energy products is also provided by our company.
We will make imports according to the demand of the solar energy product. We do not want to
have a large inventory that will tied our capital so product that have high demand will import
frequently and there is a small inventory hold by the company to cushion the variability in
demand.
Name of Supplier:
China: Zhejiang Hurras Solar Energy Technology Co Ltd
We will import solar product from these supplier as they are providing solar product on the low
cost with high quality. We will import parts of the solar products from the above listed suppliers
and assemble them locally at the customer’s place.
Flow of Order:
We will utilize technology to save customer time so with that our customers can place their
orders through our toll free number and our website. We contact them first by calling them to
confirm the order and if the order is confirmed then we will deliver them the product within five
days.
Customers Analysis
Company Skills
Competition
Collaborators
Context
Customers Analysis:
There are many companies in Karachi but it is evident from our industrial analysis that only few
companies are catering such needs of customers.
The customer buying the product looks for price, quality, reliability and warranty.
They seek the above information from word of mouth, and various IT magazines and
corporate magazines.
So according to the customer analysis we have to focus on the price and quality attributes.
Company Analysis:
The focus of the company analysis is on its strengths and weaknesses:
Strengths:
Availability of skills in all the entrepreneurs as all of the five partners are business
graduates and professionals.
Coming in the market with low cost and good quality solar energy products along with
providing the best service.
Competitive Analysis:
The solar product industry in Karachi is rich in competition. There are some companies who
already capture ample amount of market share. It will be challenge for a pak solar energy system
to make its place in market but with low cost and high quality advantage it will be easy to
capture market share.
On our research the important aspect that arises is that many competitors do not promote their
product so there is an opportunity for us to promote our product and make people aware of that
product from that we can capture a lot of market share in no time. Secondly, we are also giving
opportunity of customization to our customers which give us a competitive edge also helps us to
get more market share.
Contextual Analysis:
The contextual analysis is concerned with the opportunities and threats relating to environment:
Opportunities:
We can capture huge market share based on promotion of the product.
Opportunity that in the coming year load shedding will increase so there will be huge
demand.
Government is not focusing to cater the demand of electricity in long term by building
dams and hydro power project instead they are hiring electricity on rent from other
country which increase the per unit cost so there is opportunity for us to capture the
market.
Threats:
Chances that idea can be imitate
Chances that Economic recession can further be deepened which leads to rise in fixed
cost
Threats that political influences can affect our business.
As we are dealing in foreign currency appreciation and depreciation of currency should
affect our business.
High interest rates are causing many hurdles in the cost reduction process.
Threats that if input prices increased our cost will also be increased.
Our firm aims to customize its services based on the needs and wants of above mentioned
market segments
Service time for installation is 4 hour. But it varies with the no of orders or sizes of the
orders.
Solar Lantern
Installation Service
Product Customization
After Sales Service
Opportunity Identification:
Whenever we introduce new product in market, we will analyze if that product can bring value
to customers as well the organization.
Design:
The idea is then discussed with the customers, and their feedback is considered to be critical in
decision making.
Testing:
Testing will be done in a mock environment by inviting some loyal customers on whom actual
results would be drawn.
Product Introduction:
The product will be formally introduced in the company product list along sheer promotion in
the company.
PLACE:
MARKETING CHANNEL:
There are two ways of marketing channel we are utilizing to make our product reachable to the
customer. First one our channel design will have a direct distribution system is that we are
serving customer from our show room located at DHA phase II, commercial area. Other is that
we are delivering product to the customer at their desired location but we will charge for this
service.
From the perspective of channel management, our network to distribute product is very simple.
The only thing that we have to manage is to maintain service i.e. to provide ordered Products on
time.
PROMOTION
Marketing Communications:
To persuade the customers to approach our company, we will be adapting both personal selling
efforts and non-personal selling efforts.
Personal Selling Efforts means representatives of the company are directly involved to
communicate about the company.
Non personal selling efforts means to take services of third party for the marketing
communication purposes.
Message: Following are points that are to be communicated in our promotion strategy:
To convey that Pak solar energy system is a unique company that provides different solar
energy products.
To convey about the strategic integrations that we have planned to make with our
supplier.
Media: Following are the vehicles that we will use for our communication plan:
Brochure in Newspaper.
Money: The consensus among partners has been made allocate Rs. 100,000 on
promotional effort.
Non-Personal Vehicles:
We will be adopting combination of two approaches:
Advertising.
Sales Promotion
Advertising:
Following are the tools that we will use advertising:
Magazine
Newspaper
Brochures
Web blogs
TV Advertising
The readership of Business Recorder and Dawn is on higher side almost every
businessman read these newspapers on regular basis.
Brochures will be used because of the cost minimization, which would be distributed
along different news papers in different areas of Karachi, where we think our potential
customers exits.
Sales Promotion:
We would be using sales promotion if your order is greater than amount RS 200,000 then we
will give you discount of 20% in our services.
We would have amendments in our sales promotion plans if response of the customer is not up
to mark.
Personal Selling:
In personal selling we would be participating in major events in Karachi and
let people to see our product benefits.
Communication Mix:
Now it’s the time to decide whether we would be adapting ‘push’ strategy or ‘pull’ strategy.
Whatever the strategies that we have discussed earlier form the basis of push strategy and this
strategy is appropriate for the kind of industry in which we are dealing. We have to capture
potential customer by personal selling effort by going to customers on regular basis and make
sure they know the exact benefit of our product. But once they know the benefit of our product
we shift toward the strategy of pull that is promoting ourselves in a way that we will create
desire in the mind of potential customer that they show their insistence towards our Product.
Pricing should be done on the basis that it should cover operating expenses
As our objective is to successfully penetrate in the market, we would be opting for long
term profits, for which we would be charging prices at par with our competitors.
At the start we have to adopt penetrating strategy because of Strong competitors but once
we start producing locally and proper brand image is established we adopt the skim
strategy.
Price Customization:
Price customization can only be served in a condition:
If customer wants to buy skimmed version of our products items (i.e. only core product) then it
will be served in accordance to their customized order. In this case some price advantage will be
passed on to those customers.
This break even is achieved in the third year of the business. This indicates that we recover our
operating expenses along with our cost from the sales we generate in the first three years.
M.Jahangir khan
Ibad-Ur-Rehman
Haris Shoaib
Sidrah Jamil
The business will be having general partners; all partners will be liable for all business liabilities
and debts, they would share management control, share the right to use partnership property, and
share the profits of the firm in predefined proportions.
Terms of Agreement:
All the partners in this business will share equal profit and will have equal contribution in
the losses.
Initially partners can withdraw 5% of their profit on yearly basis for their personal uses.
Every partner must be just and faithful, and observe utmost good faith towards every
other partner of the firm.
Every partner has a right to take part in the decision making of the firm and give his
opinion about any matter but nature of business cannot be change without the consent of
all the partners.
The total cost of starting this new business is estimated to be around 9 million, the purchase of
all the fixed and current assets, and to handle the routine operating expenses related to the
business. The total cost increase as we start manufacturing locally because of annual rent of RS
960,000 and we are taking loan from bank around RS 10 Million to purchase equipments and
machinery therefore total fixed cost for the fourth year is RS 16,711,726.
Capital Requirements:
Rs300, 000 will be contributed by each partner and remaining financial assistance will be
acquired through loan from MCB Bank Limited.
The 6 partners will be playing different managerial roles in the operation of P.S.E.S Company.
Managers:
Staff:
In future we will increase our labor force according to the demand of our products.
Employee of the month. The criteria are highest sales level achieves by employee.
In future, the rewards of intrinsic and extrinsic nature would be given to our
prospective employees e.g. Bonuses
Acceptance of idea whether this idea will be accepted by the target market or not.
Due to unstable political conditions and unrest prevailing within the country our business
may face some losses.
If our competitors copy our idea than our business will be a complete failure.
Customer preferences’ may change regarding service and product quality.
New Technology:
It is likely that wind energy system may introduce in our country in coming year that would
affect our business badly because wind energy system is less costly as compare to solar products.
Contingency Plan:
The contingency plan for our firm if the wind energy system is incorporated is we will reduce
our profit margin to make sure that our product will cost less or equal to wind energy system but
this process will cut our profit so we have to control our expenses as well to our come reduction
in profit. Moreover, we shall always have a competitive edge over our competitor because
sometimes winds may not even blow, on the contrary the sun never stops shining, thus giving us
an edge always.