term paper of ebp by b50-b54

8/14/2019 Term Paper of Ebp by b50-b54

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BUSINESS IDEA

EXPORTING

SPORTS

GOODSSUBMITTED TO:- SUBMITTED BY:-

MS. MANBIR GILL VIKAS MAHAJAN B50

(Lecturer In L.I.M) JASMINE B51

Department Of Management AJAY KUMAR B52

ADITYA CHOUDHARY B53

RENIKA KIRTI B54

RT1801

INTRODUCTION


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INDIAN SPORTS GOODS INDUSTRY

The sports goods industry of India has its roots in Sialkot, Pakistan. When India was partitioned

in 1947, many of Sialkot's skilled Hindu craftsmen migrated across the border into Punjab,settling in Jalandhar, where the Indian sports goods industry is now based.

The Indian sports goods industry has expanded to include the areas of Meerut, (Uttar Pradesh)

and Gurgaon, (Haryana). Most of India's sports goods are exported to the United Kingdom, The

United States of America, Germany, France and Australia. The industry is mainly concentratedin Jalandhar and Meerut.

The sports goods industry in India has witnessed a phenomenal growth over the past five decades

and now occupies a place of prominence in the Indian economy in view of its massive potential

for employment, growth and export. There has been an increasing emphasis on its planneddevelopment, aimed at optimal utilisation of resources for maximising the returns, particularly

from exports.

JALANDHAR SPORTS GOOD INDUSTRY

Jalandhar ranks second in India in the rate of urbanisation and has the highest density of

population at 598 persons per square km, as per the 1991 census. The reason for this is growingindustrialisation. Industrial production of sports goods began on a small scale during the late

forties.

Over the years, the sports goods industry has grown at an impressive rate and of late Indian

sports goods are also exported to different countries. Rough estimates suggest that todayJalandhar has more than one hundred major industries and about 20,000 small-scale industries

with a most conservative estimate of an annual turnover of approximately Rs 450 crores.

In Jalandhar, about 60 per cent of the sports goods that are manufactured comprise of different

kinds of inflatable balls.

MEERUT SPORTS GOODS INDUSTRY

Meerut is one of the important industrial towns of the western Uttar Pradesh. It is situated about

85 kms from Delhi. Sports manufacturing units are mainly concentrated in and around Meerut &

Jalandhar in India. These industries came into existence mainly after partition, when somefamilies belonging to Sialkot (presently in West Pakistan) migrated & settled in these two towns.


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These families, having sufficient knowledge of manufacturing of sports items, started units to

meet the local requirements.

Some of these units, by virtue of their long experience in the field, have built up a good brand

name of their products, thereby getting orders from domestic market as well as from other

countries. Presently, there are 23 units, out of which 15 units are manufacturing sports items.

In and around the city of Meerut, approximately 1000 tiny units are located in villages namely

Abdullahpur, Jangethi, Mukampur, Naibasti, Malayana & Daurala etc. These units provideemployment to approximately 12000 people.

Major sporting goods manufactured in INDIA

Cricket

Cricket Bats Stumps (wickets) Cricket Balls

Batting Pads

Wicket keeping Gloves

Helmets

Boxing

Boxing Gloves

Punching gloves

Punching bags Punching balls

Badminton

Badminton Racket

Shuttle cock for indoor & outdoor games

Badminton Net

Athletics & Gymnastic goods

Inflatable balls

Football


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Basketball

Volleyball

Handball

Hockey

Hockey Stick

Hockey Ball

Pad

Helmet

Tennis

Tennis ball

Tennis table

Tennis Net

TARGET MARKET

Our target market is mainly those countries which import sports goods from INDIA. Some of thecountries which import sports goods are:-

Cricket kit is exported to almost all the countries where the game is played namely, Australia,England, Newzealand, West Indies, Zimbabwe, South Africa, Kenya, Bangladesh, Srilanka &

Pakistan.

Other sporting goods are mainly exported to Germany & USA. The export turnover through this

product line alone is approx. 8-10 crores, from Meerut.

COMPETITORS

Bahety Group: Indian manufacturers of fishing tools, sports goods, leather products and

laminates.
http://www.bahetygroup.com/http://www.bahetygroup.com/


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Ceela International: Manufacturers and exporters of cricket, boxing accessories and inflatable

sports balls. India. products and laminates.

Hans Raj Mahajan and Sons: Manufacturers and exporters of a variety of equipment such as

soccer balls, boxing gloves and shoes, cricket bat, and accessories. India.

Ranson Sports Industry: Manufacturer of cricket and boxing equipment and accessories.

Located in Jalandhar, India.

Royal International: Manufacturer and exporter of cricket bats, shoes for cricket, basketball,

hockey and other sports, and sports wear. India.

Seema Legguard Works: Producers of player's protective wear for cricket and other sports.

India.

Sport Syndicate: Manufacturer and exporter of balls, wooden products such as bats, cricketequipment and training aids. India.

Stag International: Manufacturers of sports goods and equipment including athletic products,

goal posts, indoor sports equipment. India.

Sukhdev & Co.: Manufacturers and exporters of hockey sticks, cricket bats, and badmintonrackets. India.

HOW TO EXPORT

We will be using our WEB PORTAL, for this purpose. Moreover we can get assistance forexporting sports good from Sports Goods Export Promotion Council (SGEPC), which is a

Government of India sponsored organization working for the promotion of Indias exports of

sports goods and toys. Founded in 1958, SGEPC represents all the leading manufacturers andexporters of sports goods and toys in India.

For completing our orders we will make contracts with the small firms (registered & unregisteredboth), who will provide us the finished good whenever required.

Organizational planLegal form of business

Company name:-International export house ltd.
http://www.ceela.com/http://www.hansraj-india.com/http://www.ransongroup.com/http://www.rscindia.com/http://www.slwsports.com/http://www.sportsgoodsindia.com/http://www.staginternational.net/http://www.sukhdevandco.com/http://www.ceela.com/http://www.hansraj-india.com/http://www.ransongroup.com/http://www.rscindia.com/http://www.slwsports.com/http://www.sportsgoodsindia.com/http://www.staginternational.net/http://www.sukhdevandco.com/


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Tag line:- Serve beyond the boundaries

Logo of Company:-

CORPORATION:-The Company is private ltd. and is limited by shares. International exporthouse ltd. is organized by five shareholders and every shareholder have 20% share in the

company.

Share holders of the company

Aditya Choudhary


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Vikas Mahajan

Ajay Kumar

Jasmine

Renika Kirti

Every shareholder is liable for only to its capital contribution in the company i.e. every

shareholder is liable for only 20% of the company.

Management team

In management team we are not hiring the people from outside. As we five people are the

shareholders of the company, we will manage the whole enterprise on our own level.

ORGANIZATION DESIGN:-

ADMINSTRATION:-The administration power of the organization will be in the hands of Miss

Jasmine

PRODUCTION: - We are not dealing with the manufacturing but to get the finished goods from

manufacturers and manage them in store .Also the labeling and packaging of all the products will

be done by the labor in the store. So to manage all these activities we give this responsibility to

Mr. Ajay Kumar and Renika Kirti. Both will work as production manager in the company and

their main focus will be on quality control and assembly.

MARKETING MANAGER: - Vikas Mahajan works as a marketing manager in the company.

All the activities regarding sale and promotion of the company and its products will be under his

control.

FINANCE DEPTT.-- Aditya Choudhary will work as finance manager in the organization.

He will control all the activities like Finance Accounting, Shipping/Receiving etc.

Operational Plan

Following data will throw some light on the daily operation of our business, its location,

equipment, people, processes, and surrounding environment.


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ProductionWe will not be producing goods, but we will directly purchase them from small manufacturers

and sell them to the foreign market.

Our methods of:

Costs Cost related to production on our side would be of stamping the goods with our label and

name. This would be the only cost which we would be bearing on the production side.

Quality control- Along with the order we will be providing our manufacturers with the quality

charts or quality specifications that what kind of quality product we want.

In sports goods there are many kind of raw material which can be used to produce agood, so it will depend upon our customer that what kind of quality he wants.

Customer service- Feedback forms will be used so that customer shall be cordially invited and

we shall try to satisfy our customer to the fullest extent.

Inventory control- we would try to use Economic Order Quantity and Just in Time policies to

manage our inventory.

Location

We will be operating our functions with main office in Jalandhar and a small office in Meerut.

Physical requirements:

Amount of space- We do not require to store much we aim to follow Just in Time policy so a

shed to store raw material would be enough. We shall carry put operations in a room or hall of250 Square feets portioned by wooden walls. We shall be allocating a small space for offices ofour officials.

Type of building- The Building shall be single storied and shall be divided into various parts-

Shed for storing raw material & one room for labeling. One Room having different cabins for

our officials.

Power and other utilities- We shall require a commercial electricity connection of around 7-8

Kilowatts.

Construction:

We shall be spending around Rs. 3.5 Lakhs for construction of sheds& single storied building.

Our business hours


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Our normal working hours would be around 10 A.M to 6 P.M for executives and from 9 to 5

P.M. for workers. However, the working hours are subject to minor modifications as per demand

and other conditions.

Legal Environment

An exporter, who has sent goods outside the country, has an obligation to satisfy the Reserve

Bank of India that he has received payment from his overseas buyer. The exchange control

regulations require all the exporters to:

Make a declaration on the prescribed form to the Collector of customs that foreign exchange,

representing the full export value of the goods, has been or will be disposed of in manner and

within the period specified by the RBI;

Negotiate all shipping documents, including those relating to sales on consignment basis through

authorized dealers; and

Receive payment by an approved method

Insurance

Shipping the Goods

Other legal formalities are:-

Registration as a business identity.

IEC number

Registration-Cum-Membership Certificate (RCMC)

Registration with sales tax office

Registration with excise deptt.

Personnel

Number of employees:

For collection purpose we will be having two executives. Since,

initially we will be operating only in Jalandhar & its surrounding areas and Meerut & its

surrounding areas. One executive will be responsible for Jalandhar & its surrounding areas

and another will be responsible for collection at Meerut & its surrounding areas.


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Except from collection personal we will require one technical personal for handling problems

related to our website.

Type of labor

We dont require labor as such as we are not going for production, but we will require few

workers for stamping our goods & stamping does not require much technical skills on the

part of workers. So, semiskilled laborers can be trained to work on machines. Moreover,

more use of machinery makes our technique capital extensive so we will not require many

workers.

Where and how will you find the right employees?

For collection executive we will prefer local energetic and enthusiastic people, who have

knowledge about the domestic market.

For website controller we can get from advertisement in newspaper or from any placement

firm.

Pay structure:

Wages (3500*4) 14000

Executives 10000*2= 20000

Website controller 10000

Total 44,000


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Training methods and requirements:

As we are hiring semi-skilled workers, some sort of training will be essential for all the

workers. We will give them On The Job Training. They will be working on originalmachines.

InventoryWhat kind of inventory will you keep: raw materials, supplies, finished goods?

We shall keep finished goods in our godowns in Jalandhar & Meerut.

Average value in stock (i.e., what is our inventory investment)?

Our average investment in inventory will depend upon the order which is given to usfrom our customers, few samples will also be stored which will cost about Rs. 1lac to

Rs.1.5lac. .

Rate of turnover and how this compares to the industry averages?

There are many local player already in this business, but a comparison between industry

standards is not quite possible as each brand & product in industry has its separate

standards.

Lead-time for ordering?

It is estimated that the lead time for ordering the goods may range from 1-2 days.

SuppliersOur suppliers would be the local firms providing us our finished goods.

Key suppliers:

There are about 75(approx.) local manufacturers in Jalandhar & 135(approx.) in Meerut, and

they will be our main suppliers.

Names and addresses-

1. MAHADEV ENTERPRISES


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Lalkurti , Meerut cantt.

Meerut.

2. Suraj sports goods

New colony, modipuram

Meerut.

3. Ali stumps & pads

Vill- daurala

Meerut.

4. Shakti goods

Jalandhar

Like them we have many other supplier for a large portfolio ofproducts.

Type and amount of inventory furnished finished goods . Our Average inventory of material

shall be around Rs.10000-12000.

Credit and delivery policies- We shall be ordering goods on 50% advance payment & rest on

delivery.

Should you have more than one supplier for critical items (as a backup)?

Yes, we will have a backup for supplying materials in case any of our suppliers fails to deliver us

goods within stipulated time.

Do you expect shortages or short-term delivery problems?

No, we do not expect any type of shortage or short term delivery problem as there are a large no.

of manufacturers.

Credit PoliciesDo you plan to sell on credit?


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No, so we shall also follow Cash & Carry policy.

Do you really need to sell on credit? Is it customary in our industry and expected by our

clientele?

No, since already this industry is following Cash & Carry policy, so we shall go by the

prevalent rules of industry. However, we shall ensure good discounts tor clients.

If yes, what policies will you have about who gets credit and how much?

Not Applicable

How will you check the creditworthiness of new applicants?

Not Applicable

What terms will you offer our customers; that is, how much credit and when is payment due?

Not Applicable

Do our proposed vendors offer prompt payment discounts?

If any vendor offers us attractive discounts on cash payment, we may opt for the offer depending

upon the availability of cash with us.

MARKETING PLAN

Executive Summary

Our new marketing focus, made explicit in this plan, renews our vision and strategic focus on

adding value to our target market segments. Our marketing challenge is to position our product

and service offerings as the high-quality, high value-add alternative to box pushing in a vacuum.

Vision


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Our Vision is to be the biggest player among all in the business of exporting sports goods to

western & north eastern countries, by the help of our consistent quality provided to our

customers.

Market Needs

We are providing our customers with high-quality products, exceeding the quality of almostevery other product in the market. We seeks to fulfill the following benefits that are important to

its customers:

High-quality. Timely, professional service.

Market Trends

The market trend is little bit uneven here. Whenever there is some big event the demand

increases accordingly, for instance with 2010 commonwealth games demand for athleticsproducts will increase specially on those countries which are participating.

Still we can say that there has been always an increasing trend in sports goods market.

Target market

Our target market is mainly those countries which import sports goods from India. Some of the

countries which import sports goods are:-

Cricket kit is exported to almost all the countries where the game is played namely, Australia,England, Newzealand, West Indies, Zimbabwe, South Africa, Kenya, Srilanka. The exportturnover through this product line alone is approx. 8-10 crores, from Meerut and 12-15 crores

from Jalandhar. Other sporting goods are mainly exported to Germany & USA.

Target Market Strategy

We cannot survive just waiting for the customer to come to us. Instead, we must get better atfocusing on the specific market segments whose needs match our offerings. Focus on targeted

segments is the key to our future.

Therefore, we need to focus our marketing message and our product offerings. We need todevelop our message, communicate it, and make good on it.

Needs and Requirements

We are starting our business basically by observing the need and requirements for the sports

goods in the next year for the common wealth games and also other major events in the coming


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year in which the demand for the goods will be extremely high. This demand can be for the main

events or can be for the practices for the events. So there will be definitely a need for these

products in the coming year.

So by keeping this point in our mind we are going to start with this, which will give our business

a good start and this will be helpful in covering our initial cost.

Communications

One of the best places to reach the target is the local newspaper. Unfortunately, that medium is

saturated with pure price only messages, and we'll have to make sure that our message isexcellently stated.

Because we are going to export the goods so the media which we will use is definitely Internetthat will connect us to the other states , country and foreign countries and for that we need tolaunch ourwebsites and web portals so that we can make contracts with the foreign customers.

Type of advertising

Types

Floating ad: An ad which moves across the user's screen or floats above the content.

Expanding ad: An ad which changes size and which may alter the contents of the

webpage.

Polite ad: A method by which a large ad will be downloaded in smaller pieces tominimize the disruption of the content being viewed

Wallpaper ad: An ad which changes the background of the page being viewed. Trick banner: A banner ad that looks like a dialog box with buttons. It simulates an error

message or an alert.

Pop-up: A new window which opens in front of the current one, displaying an

advertisement, or entire webpage.

Other advertising tools-

Affiliate marketing

Contextual advertising

Ad server market structure

Since 2008 Google controls estimated 69% of the online advertising market.


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VendorAd viewers

(millions)

Google 1,118

DoubleClick

(Google)1,079

Yahoo! 362

MSN (Microsoft) 309

AOL 156

Adbrite 73

Total 3,087

Payment modes

CPM (Cost Per Mille), also called "Cost Per Thousand (CPT),

CPV (Cost Per Visitor)

CPV (Cost Per View) (usually used with pop-ups, pop-unders and interstitial ads).

CPC (Cost Per Click) is also known as Pay per click(PPC).

CPA (Cost Per Action) or (Cost Per Acquisition)
http://en.wikipedia.org/wiki/Googlehttp://en.wikipedia.org/wiki/DoubleClickhttp://en.wikipedia.org/wiki/Yahoo!http://en.wikipedia.org/wiki/MSNhttp://en.wikipedia.org/wiki/AOLhttp://en.wikipedia.org/wiki/Adbritehttp://en.wikipedia.org/wiki/Pay_per_clickhttp://en.wikipedia.org/wiki/Googlehttp://en.wikipedia.org/wiki/DoubleClickhttp://en.wikipedia.org/wiki/Yahoo!http://en.wikipedia.org/wiki/MSNhttp://en.wikipedia.org/wiki/AOLhttp://en.wikipedia.org/wiki/Adbritehttp://en.wikipedia.org/wiki/Pay_per_click


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Controls

The purpose of marketing plan is to serve as a guide for the organization. The following areas

will be monitored to gauge performance:

Revenue: monthly and annual, results compared to planned sales.

Expenses: monthly and annual, results compared to planned expenses.

Customer satisfaction, to generate repeat purchases and referrals.

Research and developments costs relative to sales.

FINANCIAL PLAN

FINANCIAL DATA


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Mainly we require finance for making our web portal & establishing our office. Secondly, for

completing an order we have to pay some advance to the manufacturer also. These are the major

requirements.

Funds required in this can be raised by us only, so we dont require a loan or something like that.

Now the financial plan is shown on excel sheet which is attached with this document.

term paper of ebp by b50-b54

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