Terrariums

Introduction

• A terrarium is a collection of small plants growing in a transparent, sealed container. A terrarium is a closed environment.

Benefits

Company Summary

• Vision• “A sustainable company committed to bring people close to nature

by providing miniature landscapes, to help them live a stress free eco-friendly life"

 • Mission• “To create gardens which fit on tabletops, for those who can’t grow

plant outdoors”

Objectives

1. To turn the target customers into potential clients by application of strong Marketing and PR strategies.

2. To develop long–term customers by coming up with new and innovative designs and targeting institutional clients

3. To increase profit: To attain sales of 10% in first month

4. To increase brand awareness among people5. To grow: To open stores out of Pune after first two

years

Strengths and core competencies

• Handmade/ Handcrafted Products• Customization• Multiple unique variants• Short supply chain

Challenges

• Lack of awareness about the product• Changing demand from indoor plants to

terrariums and catering to this demand• Cost efficient procurement of various species

of ornamental plants for terrariums (Later, a nursery can be developed as backward integration)

Product Description

• miniature landscapes with colourful tropical plants inside glass containers

• Decorative, attractive and easy to care for• recycle their own moisture, hence require little tending• Available in a wide range of designs and patterns• Appeal to the customers with love for aesthetics• small hardy houseplants will be used for making terrariums• We intend to keep plethora of terrariums ready for

customers to choose from. Customization can be done if asked by the customer.

Market analysis and customer segmentation

Market Description and size

• Pune is a highly competitive market with growth in income levels, industrial and real estate boom and increase in population with high disposable income.

• According to 2011 Census, population of Pune is approximately 94 lakhs

• 35% of this population comprises of youth between 20 to 30 years of age i.e. 32.9 Lakhs

Market Growth

• In 2011, Pune had population of 9,426,959 of which male and female were 4,936,362 and 4,490,597 respectively.

• There was change of 30.34 percent in the population compared to population as per 2001.

• In the previous census of India2001, Pune District recorded increase of 30.73 percent to its population compared to1991.

• A large chunk of this growth in population can be accounted to the rapid growth of industries (IT and Automobile sector) and population with high disposable income

Market Potential• The growth in IT and Automobile sector and allied businesses has led

to high disposable income and changing lifestyles• The mall culture has boomed in the city with 21 major functional malls

and equal number of minor malls in different parts of the city• Rapidly increasing population has led to space crunch and

phenomenal increase in number of apartments especially areas near MIDC clusters such as Nigdi Pradhikaran, Hadapsar, Viman Nagar etc

• In Pune, there are two cantonment areas with population falling in SECs A and B

• Pune city is well connected to the cities of Nashik, Ahamadnagar, Solapur & and Kolhapur from where upper and upper middle class customers come occasionally for shopping of home décor material and visit malls such as Ishanya.

Market Regulation

• No such regulations except permission for opening the retail store and the compliance documents will be required

Customer segmentation

sec Age group House Type Remark

SEC A

Sec B

25 and above Mostly appartments For lack of space

Bunglows and row

houses

As decorative

products

We also aim to target institutions and organizations to put up terrariums in company lobbies, offices etc.

Competitor Analysis• Competitors for Green-Sheen will be the plant nurseries offering loose succulents and

ornamental plants, indoor plants, landscaping solutions etc.• Our research indicates the presence of nurseries in abundance in the city• However, customers perceive nurseries as place for customers who want to purchase

pots of indoor plants or sapling for garden etc.• Green-Sheen as a brand has to get over this customer perception and sell terrariums

as tabletop gardens• Plant nurseries do not do extensive marketing and very few nurseries have their own

websites• Green-Sheen looks forward to making extensive use of technology to reach customers

unlike the competitors• This will help in reducing the threat of nurseries entering into the terrariums business

since we expect that our marketing efforts will help customers recognize and prefer Green-Sheen as a premium brand

• Also, plant nurseries are not located strategically to attract individual customers and cater mainly to larger customers such as businesses, hotels etc.

Market Entry Strategies

• We plan to approach our goal short term by targeting working professionals and corporate with high disposable incomes residing in apartments in top notch areas of the city. The store locations have been chosen keeping this in mind. We also aim to target affluent executive business class and in Midtown and Downtown Pune i.e. areas like Koregaon Park. This segment of customers will buy our products for their aesthetic appeal rather than looking at them as small space garden replacement.

• The store launch is planned in the month of December keeping in mind the increased shopping during this month due to festivals and New Year.

Marketing Strategies

Pricing strategies

Store Location and Description

• “For any retail business `accessibility’ and `availability’ are important logistically” - We understand this and are paying attention to these factors. As a result, we are seeing one-stop malls that offer both convenience and comfort to consumers.

• We intend to open 3 retail stores in 3 major locations in Pune where people usually shop for home décor

Name of Mall Location Area in Million Sq ft

Ishanya Mall Airport Road 6,25,000

Town centre, Amanora Hadapsar 12,00,000

Westend Plaza Aundh 5, 70,000

2012 launch objectives

Personnel

• Management and Organization• Green Sheen operates with • 2 Horticulturists• An accountant• A gardener per retail outlet• A delivery boy • Number may increase depending on the

customers.

Job design for the staff

• Horticulturist/Supervisor/Manager: Helps in designing the terrariums, supervises and manages the retail store. Should act as an consultant for choosing the right plant for the right location and should also give after sales service like maintenance.

• Accountant:  Keeps records, manages the day book, attends calls, bill entry, etc,.

• Gardener: Waters the plants removes the dead leaves, cleans the store, makes terrariums, etc.

• Delivery boy: Makes delivery of the terrariums, helps in gardening, etc,.

Procurement

Things needed Place of Procurement

Succulent plants Common plants from Local nursery and rare plants from

Bangalore (since rare succulents are found there)

Glasses containers of different forms Local glass house

Media (FYM, nutrients, coco peat, pebbles, etc) Nurseries (later can be prepared in-house)

Small toys (which fits in terrariums) Local toy shop

Living animals (Ornamental fishes, frog, etc) Aquarium shops

Pesticides Agri-clinics

Financial Plan

Source of Finance

• Bank loan: Rs. 8,00,000

Start-up Expenses SummaryFor 1 Retail store(In Rs.) For 3 Retail stores(In Rs.)

Retail store development

Rent

Furniture

Air conditioner (3 Split A/C’s)

Phone

Utilities

Stationeries

Computer

LCD

7,500,000

10,000 X 3

45,000 X 3

2,000 X 3

1,500 X 3

500 X 3

35,000 X 3

30,000 X 3

16,00,000

30,000

1,35,000

6,000

4,500

1,500

1,05,000

90,000

In-store Staff

Horticulturist (2)

Accountant

Gardener

Delivery boy

30,000 X 3

7,000 X 3

8,000 X 3

7,000 X 3

90,000

21,000

24,000

21,000

Capital Expenditures

Vehicles (Light Commercial Vehicles)2,50,000 X 3 7,50,000

Promotion 70,000 70,000

Total Start-up Expenses 2,46,000 4,66,000

Revenue Forecast (3- Years)Yr 1 Yr 2 (100% increase over

the previous yr.)

Yr 3 (150% increase over

the previous yr.)

Terrariums(approx. 500

each)

1,82,000 364,000 418600

Manure (20/kg.) 36,500 73,000 83950

Tools and Accessories

(Rs. 500/day)

3,65,000 730,000 839500

Consulting(Rs.200/visit) 73,000 146,000 167900

Regular Corporate/office

Sales (as a table top)

18,25,000 36,50,000 41,97,500

Total Revenue 1,09,500 219,000 15,09,950

Costs incurred