v kids business plan (15 batch group 3)

V KidsFootwear

Presented by Group (3)

Ma Hnin Thiri Chaw (Roll no. 4)

Ma May Zin Htet (Roll no. 14)

Ma Mya Myin Kyi (Roll no. 25)

Ma May Myo Mon (Roll no. 36)

Ma May Thu Naing (Roll no. 45) { Leader }

Mg Thein Oo (Roll no. 53)

Ma Zin Hnin Phyu (Roll no. 57)

Ma Khine Hnin Hnin Thu (Roll no. 71)

Ma Yin Mar Naing Win (Roll no. 81)

Ma Ei Ei Phyo Zaw (Roll no. 90)

Executive Summary

Business History

Market Research

Marketing Decisions

Legal Decisions

Manufacturing & Operations

Personnel Strategies

Financial Decisions

Implementation Schedule

Content

Executive Summary

“V-kids” is a shoe manufacturer and exporter that will sell high quality kid’s shoes within five countries.

We will offer wide variety of colors and styles and high quality materials used in the manufacture.

Shoes size start from size 12 to size 23 and include half sides for example 12 ½.

Our business will cater to the needs of kids’ age from infant to 5 years.

Business History

Kids’ shoes manufacturer and exporter for

babies’ footwear with good quality and latest

trends.

Partnership {owned by 10 partners}

Manufacture using different fabrics such as

velvet, cotton, wool, etc.

Available in a wide range of gorgeous colors,

designs and prints, these shoes are designed

keeping in mind the most up-to-date fashion

trends.

Company Description

Name V-kids

Address Shwe Pyi Thar

Registered name ဗြီ��-ကစ္�(ဇ္�)

Contact number +951973166019

Fax +951217458

Domain name http://www.v-kids.shoes.com.mm/

Bank MICB, MFDP

Company Description

Business Type Exporting Manufacturer

Capital Investment $ 116,500

Total Annual Sales $ 48,250

No. of Total Staff 45 employees

Year Establishment 2012

Payment Terms L/C (or) T/T

Export Market China, India, South Korea, Thailand, Singapore

Company Logo

Slogan

“Think shoes, Choose V-kids!”

VisionTo be a distinguished kids footwear brand

known worldwide for the quality of products,

setting new trends and lifestyles.

MissionTo offer continuous value added products to

our customers.

To accomplish this, we focus on exceptional

design, innovation, quality, convenience and

interactive communication.

Production Process

Step (1)

• Lay out the fabrics, cut 2 pieces for each

pattern piece.

Step (2)

• Prepare the sole. Trace the shoe sole

pattern onto the appliqué adhesive paper

side and cut out. Iron the adhesive to the

wrong side of the inside sole piece.

Step (3)

• Cut and lay out the top, wrap pieces. Lay

them right sides together. Sew along the

top as shown.

Step (4)

• Place the right sides together at the center

back of the heel with center bottom of the

wrap as shown. Sew around until you reach

the end of one side of the top wrap.

Step (5)

• Start at the center back again and sew the

opposite direction, keeping close to the

edge. To finish the edges you can either use

an overcasting stitch, pinking shears or a

serge the edges.

Cotton Baby Shoes (0-6)months

Velvet sandals

Baby wool boots

Cotton shoes

What we offer?

Age - Infant to 5 years

Size – 12 to 23

Color - Various

Product Items - Boots, Shoes, Sandals

Fabrics – velvet, wool, cotton.

Product Characteristics

Light and Comfortable

Soft

Custom-made with a Perfect Fit

Fully Lined

Beautifully Crafted, High Quality, Constructed Correctly

Cost-Effective and Practical

Strength & Core Competencies

We ensure the excellence of our shoes are:

Material

Cut

Design conformation

Embroidery

Stitching

Stability

Finish

Color fastness

Trustworthy Raw Materials

Fabrics

• Velvet

• Cotton

• Wool

We source all materials from reputable

suppliers in China (mainland) and Taiwan who

are international approvals holders so that you

can be confident you're sourcing products that

are safe for babies and children to use.

Why trustworthy?

Benefits and Features

Innovative Design

With cartoon characters,

beep, light,

phosphorescent

Highlighted Features

Lovely designs and prints

Eye-catching colors

Long-lasting shoes

Comfortable to wear

Available in various sizes

Cartoon pattern

Seasonally design

creation

Services

For up to 5 years age groups, our variety of kids

footwear is offered in different sizes and is

tremendously comfortable to wear.

“Our Multilingual Staff Responds Quickly”

All members in foreign section are those who

know English and Chinese well. So, our customers

can contact us in English or Chinese today, and

we'll respond within 24 hours.

Customer Value Creation

A number of the factors that have made us the

ideal choice of our customers are:

Quality guaranteed goods

Customization

Capacity to accept mass orders

Well-timed delivery

Easy payment modes of Cash

Increasing competition, especially from

branded baby footwear corporations

High cost materials

Changing demands and catering to this

demand

Changing fashions and changing behavior of

demographics

Challenges

Target Market

Demographics

Target Customers: Age up to 5 years

Target Buyers: Parents, Family Members,

Retailers, and Wholesalers.

SWOT Analysis

- Product line with variations and innovative designs- Discounts are available for bundle buying- Expertise in getting new products to the market quickly- Expertise in providing good customer service- Online selling could be a competitive edge over similar rivals

- New in business as compare to rivals- Huge capital required to start business as credit is not easily available from supplier in start- Marketing expense in the start will be huge, to establish brand name required lot of advertising

Strengths Weaknesses

External Analysis

- 2015 Free Trade Policy- Policy encourage exporting - Developing economy in Myanmar- Animated movies increased the demands and popularity of attractive design for kids- High birth rate opportunity for kids foot wear section- Technology improvement support for easy exporting transaction

- Competition is high and big chains like Wall-Mart, Gap and Limited Incorporation introduced their kid’s shops in the city and penetrating in market- People are more conscious for pricing due to many competitions and going for discounts

Opportunities Threats

China

India

South Korea

Thailand

Singapore

Target Countries

Competition in Target Countries

Singaporean Rivals

• Products: baby sandals, children flogs, kids shoes, children boots and sandals.

• Products: baby shoes, sport shoes, evening dress shoes.

Shoes’ at Endless Co.,Ltd

Alibaba Shoes Factory

Chinese Rivals

Shenzhen Baby Happy Import and Export Co., Ltd

• Products: baby shoes, children shoes, kids

shoes, children boots and sandals and shoes

keychain.Jinjiang Jiaxing Shoes & Garments Factory

• Products: Kid Clogs, Flip flops, medical clog,

beach clog, baby sandals, slippers, lady

slipper, shoes, etc.

Indian Rivals

R.N. Overseas Co., Ltd.

• Products: Children's Sandals, Children's

Slippers, and Children's Shoes.

Global Technology Fashion Co., Ltd.

• Products: baby shoes, evening dress shoes.

South Korean Rivals

Tobias Mayer Online Shoe Store

• Products: Shoes, Sandals and all other clogs

and boots by Birkenstock online.

Silla International Co., Ltd.

• Products: Shoe, Boots, Canvas Shoe, Sandal,

Slipper.

Thailand Rivals

Thai Interplus Trading Co., Ltd.

• Products: Children Garment, Children's &

Baby's Shoes, Skin Care, Costume & Fashion

Jewelry.Psk Industries Ltd.

• Products: Children's & baby's shoes

Marketing Decisions

Distribution Strategies- Direct Exporting

- Logistic Alliances

Marketing Strategies

- Locally by Marketing Department

- Internationally by Foreign Distribution Group

Online Marketing

Price Range

Myanmar Kyats 5000 to 8000

China Yuan 127 to 158

India Rupee 986 to 1233

South Korea Won 23000 to 28000

Singapore S$ 24 to 30

Thailand Baht 615 to 770

Myanmar (500*5,000Kyats =US$ 6.5)

China (1000*12,000Kyats =US$15)

India (1000*12,000Kyats =US$15)

South Korea (300*12,000Kyats =US$15)

Thailand (300*12,000Kyats =US$15)

Singapore (400*12,000Kyats =US$15)

Pricing Strategy

Penetration Pricing will be the pricing strategy

V Kids

Promotion Strategy

Advertising - Baby TV, Billboard

Sales Promotion - Seasonal Discounts

Sponsor - Kids show and Activities, School

events

Place – hospitals, theme parks, schools,

shopping malls

Product Strategy

Local

Supermarkets

Departmental Stores

Specialty Stores

International

Supermarkets

Shopping Malls

Specialty Stores

Legal Decisions

Export Procedures

Apply to Directorate of Trade for registration as

exporter

Partnership firm

Terms of registration = 3yrs

Issued by the licensing authorities concerned

The validity of export license is 6 months from

the date of issue, and can be extended for three

months period at a time.

Export Procedures (continued)

No export license fee

Commercial tax = 2%

Income tax = 30%

LC = opened by MICB

Shipment on F.O.B basis under Myanma Port

Authority

Shipping bills, other shipping documents,

Country of Origin and customs pass, must be

presented to the Bank for transaction.

Custom Clearance (Export Declaration)

Export license / permit

Invoice

Packing list

Sales Contract

Shipping Instruction

Payment advice referring Inward Telegraphic Transfer

Private No./Inward Telegraphic Transfer Government No.

Sample of goods

Manufacturing and Operations

Location of production facilities for exports

• State-of-art Machines

• Sewing Machines

• High Quality Materials

H/O, Factory location – Shwe Pyi Thar

Township

Personnel Strategies

Organization Chart

BOD

Legal Consultant GM

Marketing Manager

Assistant

Admin And HR

Manager

Assistant

Production Manager

Assistant

Finance Manager

Assistant

Foreign Relation Manager

Assistant

Production

Operation

Procurement

Cutting

Embroidery

Sewing

Gluing

Finishing

Designing

Quality Control

Step-by-step quality control system for

Raw materials

Fitting

Stability

Color fastness

If one defect product has seen, it will reject to

export.

Training and Hiring

Well-trained program for staff to produce

quality products and to reduce defects.

Hiring temporary workers if the orders are

unexpectedly rising.

Human Resource

Designer with 5 years of international

experience .

Our top priority is designing safe products with

cute designs that babies and children love.

Over 30 percent of our staff members are

designers, and most of them have at least 5

years of experience in this field.

Financial Decisions

Start-up Expense Summary

Profit and Loss Statement

Cash Flow and Balance sheet

Break Even Point

Budgetary for V KidsKyats

Owners Equity (7,000,000Kyats * 10 shareholders) 70,000,000

15% Bank Loan 20,000,000

Capital investment 90,000,000

Required Money for 1st Month of Operation

Fixed Cost (Capital investment) 44,600,000

Expenses for 1st Month of Operation 27,025,000

Required Money for 1st Month of Operation 71,624,000

Reserve Capital in hand 18,376,000

*** Monthly Inventory (on hand) = 1000 units

Monthly Budgeted

Trading, Profit & Loss A/C

for V Kids for First Month

of Operation

V Kids Finance (edi G3).xlsx

(In Kyats)

Revenue 38,500,000

Less: Cost of Goods sold 14,015,000

Gross Profit 24,485,000

Less: Expenses (13,210,000)

Earning Before Interest & Tax 11,275,000

Less: Bank Interest Charges(20,000,000Kyats*15%/12months) (250,000)

Earning Before Tax 11,025,000

Income Tax (11,025,000Kyats*30%) 3,307,500

Commercial Tax (38,500,000Kyats*2%) 770,000 (4,077,500)

Net Profit 6,947,500

Retained Earning (2,500,000)

Dividend Paid 4,447,500

Dividend Paid to (10) Shareholders 444,750

Break Even Point

Expected Annual Sales & Profit

(Next 3 Years)

(In Kyats) Year (1) Year (2) Year (3)

Gross Profit 315,820,000 317,620,000 365,940,000

(-) Production Cost 146,180,000 144,380,000 158,460,000

(-) Administrative Cost 20,040,000 20,040,000 23,160,000(-) Sales & Distribution Cost 138,489,000 140,489,000 157,120,000

Earning Before Interest & Tax 157,291,000 157,091,000 185,660,000

Less: Bank Interest Charges(20,000,000Kyats*15%/12months)

(30,000,000) (30,000,000) (30,000,000)

Earning Before Tax 127,291,000 127,091,000 155,660,000

Income Tax (11,025,000Kyats*30%) (38,187,300) (38,127,300) (46,698,000)

Commercial Tax (38,500,000Kyats*2%) (9,240,000) (9,240,000) (10,488,000)

Net Profit 79,863,700 79,723,700 98,474,000

Implementation ScheduleYear/ Tasks 2012 2013

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Select Locations

Develop Stores in LocalStart Basic Kids shoes availablefor Selling

Start Online Selling

Expand ProductLine

Start Promotion activitiesStart Planning ForNew Location

Thank You For Your Attention!