BUSINESS PLAN PRESENTATION

By:Asfia Gul 13087Anum Khiyani 13258Maham Bilal 14538Varda Bilal 14537

INTRODUCTION

Stroke Ology provides services of unique wall art and murals for people who want something different and

exciting rather than plain old painted walls.

VISION & MISSION VISION

Our vision is to be recognized for the unique services we provide and to provide quality products that last

with people for a long time. MISSION

Our mission is to provide people with a platform that allows them to use their imagination and create new

things. We aim to transcend the unimaginable and help people be able to craft what they envision.

USP AND POSITIONINGOur unique selling point will be personalization of wall art to give customer’s wall an elegant and lively look.

Positioning We believe in breaking the shackles of traditional wall designing. With our innovative designs and artistic murals give your blank walls a touch of sophistication. Our highly experienced creative team works diligently to cater to the needs of our customers by coming up with unique custom specific designs which will stimulate their senses as well as providing them with a great wall decorating experience.

Corporate: For today's highly competitive business, our customized wall art range provides a welcoming environment to your clients and customers engaging them in a sensual experience and enhancing your corporate image. Our unique designs and creative ideas will help you communicate your brand values in the most artististic way possible

ORGANIZATIONAL PLANLimited Partnership:Based on limited partnership with both general and limited partners

Board of Directors:Five including four owners and Munaum BilalStrategic Partnership:Abdullah Ahmed Khan (creative artist)ICI Delux (paint supplier)Arch Vision

ORGANIZATION STRUCTURE

Board of Directors

Varda Bilal CMO

Anum KhiyaniCFO

Asfia Gul Supply Chain &

Customer Services Officer

Maham BilalMarketing & PR

Officer

GROWTH POTENTIALChanging dynamics of the country, the concept of creative walls becoming popular new found appreciation for arts and the growth of artists in the industry Students of Indus valley promoting the idea of muralsseen in restaurants, cafes, schools, offices malls etc.

TARGET MARKET

De fence a

nd Cl i f

ton

Na z ima bad

Gu l s ha n

270,

000

595,

433 75

0,27

6

PopulationPopulation

Axis Title

Popu

lation

in M

illion

s

Focus on the four main areas of Karachi

Target market is 20% of the total population which is 23.5milion.

Only a few people will be early adopters as it is a new trend.

Target segment SEC A

SWOT ANALYSISStrengths Customization: While our competitors are offering customers to choose from a range of well designed ideas, our company plans on customization. this sets us apart from our competitors and gives us an edge over them.

Skilled employees: We plan to hire students from prestigious art schools to work for us part time, a pool of very creative minded people on board

Competitive pricing: Since we are new in this market and have to establish our self, the best way to attract customers is to charge a little less than the market rates. This way people who are generally apprehensive of trying new brands can be lured into experiencing our services.

Weaknesses Low investment: Since our firm is not capital intensive, it will probe a problem in initial stages. We will not have enough budget for extensive marketing of our services. Financial constraints might hinder the success of the business

Newly established firm: Since we are new entrants in this industry, many people aren’t aware of the services we are offering. The lack of advertisement might pose a problem for us in near future.

Opportunities Few competitors: There are few competitors in the market and most of the people don’t know about the services they are offering. We can capitalize on this by effective marketing and giving awareness to people about the uniqueness of wall art.

Target market: Mostly the upper class is aware and can afford these services hence they are the ones who are targeted. Our company can target upper middle class by offering per square foot rather than whole walls. This way we could penetrate into the segment where the concept is to get the walls painted in one color with no designs.

Threats New entrants: huge threat of new entrants as this service do not require large amount of capital investments. People with creative minds and unique ideas can be a huge success in this business so we constantly need to evolve and generate new ideas which will set us apart from others.

Substitutes and direct competitors: As this concept is relatively new to the masses, we have a major threat from substitutes. People get their walls done by local painters or the get ready made wall papers. There are also huge reputable brands like Habit and Picasso in this industry. Some of them offer interior as well as exterior services

INDUSTRIAL ANALYSISThreat of substitutes Local painters who paint single colored walls, are cost effective

Firms which offer printed wall papers at fewer pricesThreat of new entrants Threat of new entrants high The barriers to entry are negligible Fixed cost is a onetime cost which may encourage entrants Resisting factor for new entrant will be the necessary skill and material, and the ever changing demand

Bargaining Power of Suppliers

Delux Paints- offers color consulting and decorative wall painting which is mainly textured walls. 1000-3000 for various paints while custom paints are charged Rs300 extra

Happilac paints- The price of their products range from Rs 1000-3000 per tub of paint, depending on the type of paint being used

Nelsen paints- offer a wide variety of paints ranging from 800-4000. offer a Color Advisory Service which is a complete color advisory service in operation to research advice on color schemes, estimates and surface preparation.

Bargaining power of buyers/customers Number of competitors- direct and indirect competitors. Habit, Picasso and online service providers

Awareness among customers- customer category is upper class and upper middle class who are aware of and can afford to decorate their home walls as per their requirement. Aware of growing trends which is why they can exercise bargaining power

Differentiation between products- is less; the customers might switch easily to some other provider. But our edge is customization which can reduce the bargaining power of buyers

Price sensitivity- Customer is always price sensitive but the target market to which we offer is ready to pay a little more for value and uniqueness in work, to make their house interiors different and special

MARKET- QUALITATIVE & QUANTITATIVE Quantitative

Achieve 20% of market penetration in the first year.Establish a couple of outlets in the areas of Defence and Clifton within five years.Have a 60% market share by the end of two years.

Qualitative

Look out for more suppliersMake strategic partnership with the distributors and suppliersKeep up with the changing trends and modify our products respectivelyHire talented and creative individuals and give them training.

PROBLEMS & OPPORTUNITIESProblems creating the awareness about our services. Although due to increased globalization, people's perspective about wall decor is changing but its still not common among masses.

The concept of mural painting and other different types of wall art is still new and we need to market it to the right audience through an effective medium of communication.

Since there are other cheaper options available, people will be hesitant towards buying our product. Wall papers and wall painting are less costly than the customized wall art hence they are more in demand. We need to communicate the value of our product and educate people telling them how our product is different from normally used wall papers and paints.

Opportunities

Since we are targeting SEC A, there are a lot of growth opportunities. Our targeted segment makes up the most well earned sector of the company who know the worth of good art so with the success of our business we can expand our services. We can offer interior decoration and move towards furnishing as well.

Our biggest advantage is that we don't have many direct competitors. This will give us an opportunity to penetrate into the market easily and gradually become the market leader in this industry.

As there are well reputed art schools in this country and a pool of creative individuals, we can use them as a resource by offering art students to work as part time with us. This would give us an insight about the emerging trends and help us to bring innovation in our services.

MARKETING MIXProduct: We offer following customized services to our customers: 1. wall paints on wall2. wall art3. wall muralsPlace We will start off at a small scale and will be setting a home office. We will be conduction consultations in the clients own home or office.

Once a design is planned out we will then initiate projects. We will be keeping all our equipment in a spare room in one of the partner’s houses while using that same room as an office/ discussion room.

Price We will be using differential pricing for all our services.

Promotion and marketing strategy: The product that we are offering is high end and as the result, middle class and upper middle will be the strata that we will cater. It includes women and especially young people belonging to the same class and having the affordability for something creative.

The traditional society has laid down rules for women and has termed as the “home maker”. This is the main reason that women are the ones who decorate home. Women belonging to middle and upper middle class, like to follow the prevailing trends in market, whether its clothing or interiors. As per our survey, many married and unmarried females are interested to get murals on their room walls. For the purpose of brand awareness, brochures and social media advertisements will be effective. The locations for brochures will be the area visited

SURVEY RESULTS

Our sample size was 100. Out of all, 35 % were male and 65% were female.

Majority of the respondents belonged to the age group 25-34 yrs (73%) whereas some didn’t answer this question.

Majority of the respondents belonged to middle class strata having monthly income less than Rs 49,999

 75 % of the people interviewed said that they decorate home walls.

The ones who affirmed that they decorate their home walls, majority of them said that they do it once in 5 years.

This indicates that wall interiors are not done on frequent basis and are one time investment, e.g. when the house is made.

The ones who affirmed that they decorate walls, majority of them said that they don’t take assistance from designers.

They decide themselves whatever pattern they like, paint or wallpaper they want.

This question tells us the brand awareness. Respondents knew about wall paper and interior brands e.g. Habitt, Picasso and Wall Master.

The respondents were asked whether they take services of the brands mentioned above or not for wall decorations.

43% approx said that they don’t take their services and do it themselves.

Tells us buyer’s perception about wall designing.

35% of the respondents selected the designer because of the variety they offer. We will take it as our value added feature which may attract the target market.

To know if people will actually turn up and take services from new start up designers online, we added this question.

The result is perplexing because 43% refused that they won’t get wall designed from online designer.

Linking it to the question above, the ones who refused to take services said they won ’t take services of designers rather will do themselves.

For the rest we can say that there might be any unfavorable past experience which has influenced their decision or they haven’t come across with any online wall artist.

Majority of the respondents who get their wall decorated said that they would like to get wall art on the walls on their house.

From market survey, our competitors who are online wall artist charge Rs 15,000 for painting a 3 x 3 square feet wall mural.

When asked how much would they pay for 3 x 3 sq feet wall mural, the majority of interviewers said that they would pay Rs 10,000 for the same sized wall mural.

So we get the price range Rs 10,000 - Rs 25,000 whereas Rs 10,000 is price flooring and Rs 25,000 is price ceiling for 3x3 feet. The price we are offering is Rs 25000 for 3x3 feet .

When asked what price they will pay to get 5 x 10 square feet wall paper covered on wall, approximately 60% of the respondents said that they would pay anything between Rs 7,000 – Rs 10,000. The market survey revealed that a roll of wallpaper if import from Italy or Korea, is priced Rs 6,000 for the same size, and if imported from China (which is of low quality and not durable) is priced Rs 1800 – Rs 2,000. Therefore, we get our pricing range from the below question.

MONTHLY PROFORMA INCOME STATEMENT

In Rupees Jun Jul Aug Sep Oct Nov

Sales [1] 50,000 50,000 50,000 50,000 50,000 250,000

Less: COGS [2]

20% of sales 10,000 10,000 10,000 10,000 10,000 50,000

Gross profit 40,000 40,000 40,000 40,000 40,000 200,000

Operating expenses

Salaries [3] 20,000 20,000 20,000 20,000 20,000 320,000

Rent [4] - - - - - -

Utilities [5] 5,445 5,445 5,445 5,445 5,445 5,445

Advertising [6] 1,875 1,875 1,875 1,875 1,875 1,875

Selling/sales expense [7] 1,083 1,083 1,083 1,083 1,083 1,083

Misc exp (mobile bill+printing exp) [8] 2,000 2,000 2,000 2,000 2,000 2,000

Depreciation [9] 179 179 179 179 179 179

Total operating expense 30,583 30,583 30,583 30,583 30,583 330,583

Earning before tax 9,418 9,418 9,418 9,418 9,418 (130,583)

Tax (0%) [10] - - - - - -

Net income 9,418 9,418 9,418 9,418 9,418 (130,583)

In Rupees Dec Jan Feb Mar Apr May

Sales 50,000 50,000 50,000 250,000 50,000 50,000

Less: COGS

20% of sales 10,000 10,000 10,000 50,000 10,000 10,000

Gross profit 40,000 40,000 40,000 200,000 40,000 40,000

Operating expenses

Salaries 20,000 20,000 20,000 320,000 20,000 20,000

Rent - - - - - -

Utilities 5,445 5,445 5,445 5,445 5,445 5,445

Advertising 1,875 1,875 1,875 1,875 1,875 1,875

Selling/sales expense 1,083 1,083 1,083 1,083 1,083 1,083

Misc exp (mobile bill + printing exp) 2,000 2,000 2,000 2,000 2,000 2,000

Depreciation 179 179 179 179 179 179

Total operating expense 30,583 30,583 30,583 330,583 30,583 30,583

Earning before tax 9,418 9,418 9,418 (130,583) 9,418 9,418

Tax (0%) - - - - - -

Net income 9,418 9,418 9,418 (130,583) 9,418 9,418

PROFORMA INCOME STATEMENT FOR

THREE YEARS

In Rupees 2015-16 2016-17 2017-18

Sales 1,000,000 1,700,000 2,200,000

Less: COGS

20% of sales 200,000 340,000 440,000

Gross profit 800,000 1,360,000 1,760,000

Operating expenses

Salaries 840,000 960000 1230000

Rent -

Utilities 65,340 71874 79061

Advertising 22,500 22500 22500

Selling/sales expense 13,000 14300 15730

Misc exp 24,000 26,400 29,040

Depreciation 2,150 2,150 2,150

Total operating expense 966,990 1,097,224 1,378,481

Earnings before tax (166,990) 262,776 381,519

Tax (0%) - - -

Net income/loss (166,990) 262,776 381,519

PROFORMA BALANCE SHEET

FOR THREE YEARS

In Rupees 2015-16 2016-17 2017-18

Assets

Current Assets

Cash 221,010 471,786 841,305

Accounts Receivable 100,000 170,000 220,000

Total Current Assets 321,010 641,786 1,061,305

Fixed Assets

Equipment 3,000 3,000 3,000

Company Computer [11] 9,000 9,000 9,000

Company Laser Jet Printer [12] 6,500 6,500 6,500

Company Mobile Phone [13] 3,000 3,000 3,000

Less Accumulated Depreciation:

Equipment Dep. 300 600 900

Company Computer 900 1,800 2,700

Company Laser Jet Printer Dep. 650 1,300 1,950

Company Mobile Phone Dep. 300 600 900

Total Fixed Assets 19,350 17,200 15,050

Total Assets 340,360 658,986 1,076,355

Liabilities And Owners Equity

Current Liabilities

Accounts Payable 107,350 2,000 2,000

Total Liabilities 107,350 2,000 2,000

Owners Equity

Partners Capital 400,000 400,000 400,000

Retained Earning - - -

Net Income/Loss (166,990) 264,926 383,669

Total Equity 233,010 664,926 783,669

Total Equity And Liabilities 340,360 658,986 1,076,355

CASH BUDGET 2015-16In Rupees Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May

Rent - - - - - - - - - - - -

Salaries 20,000

20,000

20,000

20,000

20,000

320,000

20,000

20,000

20,000

320,000

20,000

20,000

Advertising 1,875

1,875

1,875

1,875

1,875

1,875

1,875

1,875

1,875

1,875

1,875

1,875

Selling 1,083

1,083

1,083

1,083

1,083

1,083

1,083

1,083

1,083

1,083

1,083

1,083

Utilities 5,445

5,445

5,445

5,445

5,445

5,445

5,445

5,445

5,445

5,445

5,445

5,445

Total 28,403

28,403

28,403

28,403

28,403

328,403

28,403

28,403

28,403

328,403

28,403

28,403

CASHFLOWS:In Rupees 2015-16 2016-17 2017-18

Beginning Cash Balance 400,000 221,010 471,786

Cash Inflows

Sales & Receipts 1,000,000 1,700,000 2,200,000

Total Cash Inflows 1,400,000 1,921,010 2,671,786

Cash Outflows

Furniture And Equipment 14,150 14,150 14,150

Rent - - -

Salaries 840,000 960,000 1,230,000

Selling Expense 13,000 14,300 15,730

Advertising 22,500 22,500 22,500

Utilities 65,340 71,874 79,061

Misc Exp (Mobile Bill+printing) 24,000 26,400 29,040

Cost Of Sales 200,000 340,000 440,000

Subtotal Cash Outflows 1,178,990 1,449,224 1,830,481

Ending Cash Balance 221,010 471,786 841,305

1. Sales

2. COGS: Percentage of sales method is used for COGS (20%).

2015-16 2016-17 2017-18Individual household projects per yr

24 36 48

Corporate projects per year 2 4 5

Costs in RupeesBig Buckets 4 L (Per Month) Price Total

Black 400

Blue 400

Green 400

Yellow 400

White 400

2000

Small Acrylic Tubes 5 Per Month 300 1500

3500

Fixed Cost Per Year

Paint Brushes 1500

Roller 200

Glue Gun 500

Chalk Paint 5400

Chalk Board Spray 2700

Varnish (Rs 100 Per Bottle) 500

Crafting Tools Pack 300

15 Sponges (Rs 50 Each) 750

Coal 300

Stencils Per Year 2000

14150

Total In Rupees Year 1 Year 2 Year 3

Paints 42000 74400 102000

Brushes, Stencils Etc 14150 14150 14150

Total 56150 88550 116150

3. Salaries

4. Rent: (not included)5. UtilitiesInflation is assumed 10 % for next two years

6. Advertising

Rate Per ProjectIn Rupees

No. Of Projects

Salaries Individual Projects 10,000 2

Sanki Corporate Project 150,000 2

No. Of Units Rate per unit Total in Rupees

100 5.79 579

600 8.11 4866

Advertising cost (website) Total in Rupees

Number of pages 5

Price per page 3,000

Web hosting price per year 6,000

Domain name price per year 1,500

Total cost 22,500

7. Selling/sales expense

8. Misc ExpIncludes the office expenses i.e. printing expense and mobile bill of the company mobile/telephone9. Depreciation10% of the cost of item including equipment, computer, printer and mobile phone.

10. Tax rateAcc to 2001 tax ordinance:

Catalog cost Rs 1000 per year

Transport cost Rs 1000 per month

Equipment Dep. Rs 300

Company Computer Rs 900

Company Laser Jet Printer Dep. Rs 650

Company Mobile Phone Dep. Rs 300

1. Where taxable income does not exceed Rs.400,000

0%

2. Where the taxable income exceeds Rs.400,000 but does not exceed Rs.750,000

10% of the amount exceeding Rs.400,000

PRICINGPrice Range: Rs 10,000- Rs 25000

Variable cost includes: Salaries.

Fixed cost includes: Utilities, Advertising website, Cost of Art Supplies, Transport, Catalogue

Unit Cost= variable cost + fixed costs/unit sales

Unit Cost= Rs 840,000 + Rs 104,650/108

Unit Cost = Rs 8747

Markup Price= Unit cost/(1 – desired return on sales)

Markup Price= Rs 8747 / ( 1 – 0.35)

Markup Price= Rs 13,457

To frame our UNIQUE SELLING PROPOSITION, we asked the interviewers according to them why wall art gives depth in the home interior? It was an open ended question. Some of the repeated answers that we received are as follows:

1. It helps you personalize things2. It complements the other things3. Gives it a unique feel4. Looks interesting5. Its gives a classic look6. It makes our home more beautiful7. It gives an added layer to the wall and thus giving a nice feel to the rest of the room.

Making it look more stylish8. It changes your mood and feelings9. It gives a more elegant touch the beauty of home10. Not sure. Maybe because of the designs and use of colors11. Gives you a relaxing and comfortable atmosphere to live in12. Plain walls look boring. I think that homes should represent the people who live in them.This gives us our USP. Our unique selling point will be personalization of wall art to give customers wall an elegant and lively look because as said by a respondent, plain walls look boring.