MINI PROJECT REPORT

ON

“Environment Friendly products made

of bamboo for daily household usage”
Towards partial fulfillment of
Master of Business Administration (MBA)
(Affiliated to DR. A P J Abdul Kalam Technical University, Lucknow)

Submitted By: Faculty Guide:

Vishnu Pratap Singh MR. D. K. SHUKLA
MBA 1st Semester (Assistant Professor)
BBD ITM, Lucknow BBD ITM, Lucknow

SESSION 2021-2022
DEPARTMENT OF MANAGEMENT

Babu Banarasi Das

Institute of Technology & Management
Sector 1, Akhilesh Das nagar, Faizabad Road, Lucknow (U. P.), India
 DECLARATION
I hereby declare that the field work entitled of “Environment Friendly products

made of bamboo for daily household usage” submitted to the university is a record

of an original work done by me under the guidance of MR. D. K. SHUKLA

(Assistant Professor) (BBD ITM, Lucknow) and this Mini report is submitted in the

partial fulfillment of Master in Business Administration.

Date: Vishnu Pratap Singh

Place: MBA 1st Semester
 ACKNOWLEDGEMENT

I am highly indebted to my Faculty guide MR. D. K. SHUKLA Sir for their

throughout guidance and constant supervision as well as for providing necessary

information regarding the project & also for their support in completing the project.

I would like to express my gratitude towards my parents & my college mates for their

kind co-operation and encouragement which help me in completion of this project.

However, it would not have been possible without the kind support and help of many

individuals and organizations. I would like to extend my sincere thanks to all of them

who have willingly helped me out with their abilities.

VISHNU PRATAP SINGH

MBA 1st Semester

 PREFACE

I respect to the allotted project, I have inherited myself as an entrepreneur in this

organization but informally it is a sacred place for me as it’s my first practical

exposure to an organization to know and get aware to an organizational real practical

stressful environment. Although I am student of MBA It is a two year full time degree

courses. So far this training is scheduled for first semester syllabi of AKTU i.e. (Mini

Project) as a separate topic to be asked in detail in viva-voice conducted by external

Thus study will provided me a better opportunity to survive in cut throat competition

with a prosperous existence. I have tried my best to gain out of well framed

circumstances & with the help of experienced personnel who helped me out so for

become possible to them. As being a very confidential functioning many things are

there which can’t be known but on the basis of gathered information and certain hints,

the project has been formed. It may have something missing but I have tried to present

all things what I have received. Although this report has been got checked by different

personnel but after that if there is some shortcomings I expect it to be rectified. So the

whole study bifurcated in different parts. Certain observations & suggestions also

have been stated which if possible to be reviewed.

 TABLE OF CONTENT

Sr. No. Topic Page no.

1. INTRODUCTION 1

2. OBJECTIVE OF THE INNOVATION 13

3. NEED OF INNOVATION 15

4. SOURCE OF IDEA 17

5. USES OF THE PRODUCTS 24

6. COMPETITORS ANALYSIS 29

7. SWOT ANALYSIS OF PRODUCT 31

8. PRICING STRATEGIES FOR BUSINESSES 37

9. LIMITATIONS 47

10. CONCLUSION 49

11. BIBLIOGRAPHY
 INTRODUCTION
In China bamboo fiber has been used to make paper since early times, but in recent

years, bamboo has emerged as an important raw material for the pulp and paper

industry due to the shortage of wood resources. Bamboo paper has a high tear index,

similar to that of hardwood paper, and its brightness and optical properties remain

stable, while those of wood derived paper may deteriorate over time. Bamboo can

also be pulped with less power and chemicals than wood which makes it more

environmental friendly.

The total production capacity of bamboo pulp in China reached 2,4 million tons in

2017, of which 80% of the pulp is used for the production of unbleached bamboo pulp

for household paper grades. A few examples of bamboo paper products are coffee

filters, paper cups, paper towels, toilet paper, cardboard, kraft paper, and bond paper.

Bamboo Toilet Paper

1
Disposable Bamboo Paper Cups

Bamboo Copy Paper

2
BAMBOO PULPING AND PAPERMAKING-THE EFFICIENT USE OF

BAMBOO FIBER

Papermaking is one of out country’s four great inventions. In the Eastern Han

Dynasty, Cai Lun used bark, broken fishing nets, rags, hemp, etc. as raw materials to

produce plant fiber paper suitable for writing on the basis of summing up the

experience of the predecessors in making silk crystals. The improvement of

papermaking technology makes paper a commonly used writing material. Starting

from the Jin Dynasty, bamboo was found to be used as a raw material for

papermaking. As a result, China's papermaking history has also turned a new page.

Professor Chen Lihui from the School of Materials Engineering of Fujian Agriculture

and Forestry University has been ―communicating with bamboo‖ for more than ten

years and has devoted himself to research bamboo, especially the research on bamboo

fiber papermaking technology.

3
BAMBOO PAPERMAKING, ENVIRONMENTAL PROTECTION STARTS

FROM THE SOURCE

In recent years, with the gradual deepening of the concept of environmental

protection, bamboo papermaking, a technology that has been passed down for nearly a

thousand years, has once again attracted public attention. Compared with traditional

wood fiber papermaking, what is the difference between bamboo papermaking? A

few days ago, the reporter interviewed Professor Chen Lihui from the School of

Materials Engineering, Fujian Agriculture and Forestry University.

According to Chen Lihui, Chinese bamboo fiber papermaking began in the Jin

Dynasty, and Europeans did not master the technology of making paper with non-

linen materials such as bamboo and thatch until the 19th century. Judging from the

time when the craftsmanship was produced, the bamboo papermaking craft in China

was more than a thousand years earlier than in Europe. At first, the ancients could not

divide the bamboo fiber into filaments, so that the paper produced was rough. Later,

with the advancement of technology, the paper produced from bamboo pulp became

more delicate and flexible, which was favored by scholars.

Chen Lihui told reporters the main chemical components of bamboo include cellulose,

hemicellulose and lignin. In the process of pulping and papermaking, it is usually

necessary to remove lignin and retain cellulose and hemifibres. Compared with wood,

bamboo has a higher density. The cooking liquid is more difficult to penetrate and the

removal of lignin is more difficult. In ancient times, tender bamboos were usually

used for pulping and papermaking. The density of tender bamboos was low and the

lignin content was low, which was beneficial to the penetration of the cooking liquid

and the removal of lignin. With the innovation of pulping and papermaking

technology, the use of bamboo to make bleached bamboo pulp can be cooked with

4
deep delignification technology and bleached with multi-stage chlorine-free bleaching

technology, with less carbohydrate degradation, high yield and high strength of

bleached bamboo pulp, and the production process of pollution is low.

For the paper industry, wood is an excellent raw material for papermaking. However,

our country's forest coverage rate is far below the global average of 31%, and the per

capita forest area is only 1/4 of the world average.

The "Thirteenth Five-Year Plan for Forestry Development" pointed out that

vigorously develop forest tourism, under-forest economy and wood and bamboo

product processing parks, develop high-quality, high-yield and high-efficiency

bamboo forests, strengthen the construction of key counties for the development of

the bamboo industry, and strengthen the targeted cultivation of bamboo forest

resources. Develop the bamboo processing industry and improve the intensive

management of the bamboo industry. By 2020, the total output value of the bamboo

industry will reach 300 billion yuan.

5
Our country's bamboo resources, bamboo forest area and stock volume rank first in

the world, and it is known as the "Bamboo Kingdom". In this context, the

development of bamboo pulp and paper will help alleviate the shortage of wood in our

country's pulp and paper industry and help to protect the ecological environment.

Bamboo has the advantages of fast growth, short cycle, and renewable. Bamboo is an

excellent raw material for papermaking. Innovative bamboo pulping and

papermaking technology can achieve high-value utilization of bamboo resources,

which will help adjust the bamboo industry structure and promote the economic

development of bamboo production areas. It is important for farmers to get rich.

6
EFFICIENT USE OF BAMBOO FIBER

The morphology of bamboo fiber is between coniferous wood fiber and hardwood

fiber, and the performance of bamboo pulp is between coniferous wood pulp and

hardwood pulp. Using bamboo as raw material can produce pulp and dissolving pulp.

Pulp can be used to make paper, while dissolving pulp can be used as textile material.

To produce dissolving pulp with bamboo as a raw material, it is not only necessary to

remove lignin, but also to remove hemicellulose. Bamboo dissolving pulp is used as

raw material to produce viscose fiber. The traditional process uses carbon disulfide as

the solvent, which has the disadvantages of long production cycle, low fiber strength

and serious pollution in the production process, and the production process will

produce carbon disulfide and hydrogen sulfide and other toxic gas pollution.

Through technological innovation, our project team used pollution-free organic

solvents instead of carbon disulfide to solve the core key technology of bamboo

regenerated fiber production-the technical problems of inability to continuous

spinning and low solvent recovery rate, and developed a pollution-free bamboo

regenerated fiber during the production process.

There are two innovations in the key technology and functionalization of bamboo

fiber preparation. One is the development of key technologies for the preparation of

bamboo pulp and dissolving pulp; the other is the development of bamboo pulp short

fiber textile materials to replace the traditional viscose fiber production process with

serious pollution during the production process. The key technology of bamboo fiber

preparation developed by this project can solve the problems of poor performance,

high energy consumption and heavy pollution of traditional bamboo fiber, and realize

its high-value application in textile, packaging, decoration and other industries.

7
We can offer not only vertical pulper, but also horizontal pulper. Here are the

different specifications of pulpers for bamboo pulp making you can refer to.

Rotary Spherical Continuous

Vertical Digester
Digester Tubular Digester

Capacity(dry bamboo
180-220kg 220-230kg 110-160kg/min
chips)

Liquor ratio 1:2.4-3 1:3-3.5 1:2.4-2.8

alkali charge(sodium
18%-22% 15%-18% 18%-20%
cyanide)

sulfidity 15%-25% 16%-22% 18%-20%

maximum cooking
0.55-0.65 0.65-0.7 0.6-0.7
pressure(MPa)

maximum cooking
– Around 165 165-170
temperature

Indirect heating and

heating method Direct heating Direct heating
direct heating

cooking time 4h 4-5h 45-48min

brown pulp hardness 10-18 14-18 14-18

residual alkali of black

9-16g/L 10-16g/L 10-16g/L
liquor

8
 OBJECTIVE OF THE INNOVATION

My primary objective as a Bamboo Pulp and Paper is to deliver quality product

and awareness to the customers. I can fulfill this by ensuring those customers’

requests on quality product.

I aim to provide customers better quality product at their home.

To provide and better quality herb to use as a medicine.

To promote LOCAL FOR VOCAL

9
 NEED OF INNOVATION
Successful innovation allows you to add value to your business so that you can

increase your profits—if you don't innovate well, your business will plateau.

Innovation helps you stay ahead of the competition. With globalization and a rapidly

changing market, there are more competing businesses than ever before.

Innovation increases your chances to react to changes and discover new opportunities.

It can also help foster competitive advantage as it allows you to build better products

and services for your customers.

Yes as we all know India followed by China is the largest producer of medicinal

plants, having more than 40% of global diversity. The states which are major

producer of herbal plants having the highest medicinal value include Gujarat,

Rajasthan, Haryana, Tamil Nadu, Andhra and the Himalayan Range.

Float employment in every possible manner.

Innovation isn't just something new, it's something different and useful. Innovation

management is the process of managing innovative ideas. Innovation can improve

productivity, create new revenue streams, increase employee loyalty, save costs.

Successful innovation management will transform big ideas into reality.

10
 SOURCE OF IDEA

Human mind:- Human mind is the main source of innovations. In

business, innovation often results when ideas are applied by the company in order to

further satisfy the needs and expectations of the customer

• Unexpected Occurrences:- Consider, first, the easiest and simplest source of

innovation opportunity: the unexpected....

• Incongruities....

• Process Needs....

• Industry and Market Changes....

• Demographic Changes....

• Changes in Perception....

• New Knowledge.

• Innovation is based upon bright ideas. the human mind thinks of new things

that can better fulfill an existing need. In this process he thinks of filling his needs in

new ways and by devising new products and mechanisms. Demographics: Our

lifestyles can also be a source of innovation

11
What Are Pros & Cons Of Bamboo Pulp
Making?

As we all know, the raw material of paper pulp manufacture can be divided into four

types, including wood fiber, non-wood fiber, wastepaper, and non-plant fiber.

Bamboo belongs to the non-wood fibers. For most paper pulp mills, the main source

of paper pulp production is wood fiber. Because the wood resource is short, at the

moment, there are many other non-wood fibers can be used for paper pulp makings,

such as bamboo, bagasse, jute, cotton, and etc. With a variety of advantages, bamboo

is recognized as a trend of the paper pulp industry. What are the pros and cons

of bamboo pulp making?

Pros of bamboo pulp making

The biggest benefit of bamboo pulp making is easy obtainment of the raw material.

There are common kinds of bamboo for paper pulp making, include small diameter

bamboo, moso bamboo, de-greening bamboo and etc. Bamboo is a common plan in

the southern tropics, subtropics area. As a country of origin, China has the richest

bamboo resource.

Bamboo is the fastest growing plant in the world and easy to be planted. Every ton of

paper needs four tons of fresh bamboo and one acre of land produce about 1 to 2 tons

12
per year. If the bamboo variety is selected, the yield can reach 3 to 4 tons. After

successful afforestation, the first harvest requires three years, and then, bamboo can

be cut down every year. It does not need to reforest in a few decades with reasonable

management and protection, you can protect the green hills and use them forever. The

growth pattern of bamboo has great positive significance for alleviating the shortage

of timber resources and preserving the ecological environment.

As the raw material for paper pulp making, the fiber of bamboo should be paid more

attention to. In general, longer fibers produce stronger paper. Bamboo fiber is thin and

long, the average length is 1.5-2.0mm, higher than wood, reed, rice straw and bagasse.

Bamboo also has large length-width ratio and good drainability. Bamboo has fewer

parenchyma cells, about 20-35%, and higher cellulose content, between softwood and

hardwood. The lignin content is between 21-27%. The ash content is 1.0-2.9%, which

is relatively low and is mainly concentrated in the skin and nodes, and the content of

fiber bundles and parenchyma cells is very small. The fiber cavity is larger than that

of wood or grass, and the bamboo can reach 4.55. Taken together, bamboo is second

only to wood and it is most suitable for pulp and paper making. Bamboo pulp paper

and wood pulp paper have little difference. Generally speaking, bamboo pulp paper is

more straight and can be applied to medium and high-grade paper making including

offset printing paper, letterpress printing paper, oil seal paper, kraft paper and match

paper.

The preparation of bamboo generally include dry cut, screened, then washed,

dehydrated, and then sent to pulp cooking, the pulp production is not more

complicated than the processing of other fiber materials. In addition to the cutter-type

and the knife-roller bamboo cutting machine, there is also a drum-type bamboo

cutting machine which is widely used today. The bamboo pieces are generally 2-3 cm.

13
The drum washer and the twin roll press used for washing are closed and washed,

but the slag is required to be drained regularly. The cooking process has been

improved by techniques, and the cooking yield is about 50%.

Cons of bamboo pulp making

According to statistics from 2010, all pulp mills around the world produces 146

million tons of pulp, including 2 million tons of bamboo pulp. It can be seen that

although bamboo has the above various advantages, the current proportion of bamboo

pulp papermaking is not very high. Presumably, bamboo pulp papermaking also has

certain limitations.

Firstly, due to the growth habit of bamboo, the territorial scope of bamboo pulp

making is relatively limited. The bamboo

Bamboo grows well in the place where it is warm and humid, so the countries with

more bamboo in the world are concentrated in the tropics, subtropics, especially

14
Southeast Asia. In China, the south of the Yangtze River is a tropical monsoon

climate and a subtropical monsoon climate zone. It is warm and rainy enough to

produce bamboo in large quantities. Although the bamboo can be planted in the north

of China, it belongs to the zone of the continental monsoon climate, the bamboo is

used as a landscape bamboo with a small diameter. Growth period is slow, not

suitable for industrial use. From the view of the bamboo source, only the bamboo

forests in the south are suitable for bamboo pulp papermaking, while the north is

greatly limited. Even if the preparation and papermaking can be carried out

separately, the transportation cost will increase, so pulp mill is generally chosen to be

near the place where produce bamboo in large quantities. Therefore, the regional

problem should be the most important factor restricting bamboo pulp and

papermaking.

Secondly, the black liquor of bamboo pulp making is hard to recover, environmental

pollution is large. Although there are some new technical processes, such as low

temperature and high-pressure mechanical extraction, which can be used to extract

black liquor, this method has not been well promoted by scientific research and

identification. Many places where water bodies are limited are not suitable for the

development of bamboo pulp and paper making. In this regard, an environmental

impact assessment is also required at the time of construction.

Thirdly, from the view of the pulping process, when the bamboo slices are cooked,

the air is trapped inside the bamboo ducts, which hinders the penetration of the liquid.

The sand is mixed with silt and gravel, and it is difficult to remove by screening. As a

result, increase the equipment wear and affect the pulp quality. In order to solve this

problem, some people have proposed the technique and equipment for tearing bamboo

into bamboo filament. After cutting the bamboo into bamboo chips by a cutter-type

15
bamboo cutting machine, the bamboo is twisted into bamboo filament by a tearing

machine, the washing machine and the depithing machine separate the relatively

dense debris such as sandstone and iron block, remove the fine bamboo filament and

bamboo pulp while depithing, and dissolve part of the dissolved matter. However, this

method complicates the process and affects production costs. In addition, because the

bamboo pulp fiber is long, it is necessary to beat to properly cut the fiber, and the

wear on the machine during the pulp beating is often very serious.

As a compromise, many paper mills add a certain proportion of bamboo pulp to the

wood pulp to increase the stiffness of the paper.

In summary, bamboo pulp papermaking is a non-wood pulp fiber paper with great

potential. Despite the limitations of bamboo pulping and papermaking, advanced

production techniques can overcome some of the process and equipment challenges in

bamboo pulping. Coupled with the cultivation of high-quality and high-yield bamboo

forests and the establishment of a bamboo pulp production base integrating forestry

and paper, bamboo pulp and papermaking can be better developed.

16
 USES OF THE PRODUCT

The prospect of bamboo pulp and paper making can alleviate the shortage of pulp in

China and conform to the general principle of adjusting the raw material structure of

paper industry. The National Development and Reform Commission issued in 2004

the Tenth Five-Year Plan and the 2010 Special Plan for the National Forestry and

Paper Integration Project, which proposed that the production capacity of pulping

should be increased by 5.55 million tons on the basis of the end of 2005. The capacity

of bamboo pulp is 1.2 million tons, the capacity of bamboo pulp production is 17.6

million tons with paper making forest base after 2010, and the capacity of bamboo

pulp is 3.95 million tons. The development and layout of bamboo pulp is focused on

the southeast coastal area and southwest area.

In terms of cost Comparing bamboo pulp with pine and eucalyptus, the unit cost of

bamboo pulp is lower than wood pulp. Is there no good for cheap? The existing

production practice shows that the performance of bamboo pulp is between coniferous

wood and broad-leaved wood, which is obviously superior to that of grass pulp. It can

replace broad-leaved wood pulp and reduce the amount of softwood pulp. It can be

used to manufacture various kinds of paper, including a variety of high-grade paper

products.

Bamboo pulping production technology is mature and reliable, and most equipment

can adopt national products, and pollution control technology is mature, "three

wastes" can meet the national emission standards. Ecological effect is another

advantage in developing bamboo pulp and paper. It is worth mentioning that cloud,

expensive In Sichuan, Chongqing, Guangxi, Hunan, Jiangxi and other central and

western regions of natural resources, very suitable for pulp and paper bamboo species

growth. Bamboo pulp paper also faces some problems in China. The further

17
development of bamboo pulp paper industry in China is faced with resource

constraints and environmental pressure.

The main problems are as follows:

Less powerful enterprises of bamboo pulp and paper, low level of overall technical

equipment and scale benefit, large gap of high quality raw materials, high import

dependence, and so on. The resource consumption is high, the pollution prevention

task is arduous, the equipment research and development ability is poor, the advanced

equipment depends on the import, the foreign investment structure needs to be

optimized, the overall and coordinated development task is urgent.

Bamboo pulp papermaking has a broad prospect from the current actual transportation

Bamboo pulp paper has shown good economic and social benefits. For example,

18
Zhongzhu Paper Group Co., Ltd., relying on the mature technology of "bamboo for

wood", began to operate the Ya'an bamboo pulp project, which has already achieved

initial results. At the "Bamboo Pulp Industry Development and Environmental

Protection" seminar, dozens of industry experts, such as the China Society of

Environmental Sciences, the China Papermaking Association, the State

Environmental Protection Administration, and the Ecological and Environmental

Center of the Chinese Academy of Sciences, recommended that bamboo forest bases

should be established.

To explore a suitable base business model; to implement bamboo, pulp, paper

integration; call on the state to focus on supporting existing bamboo pulp enterprises

through technical transformation and cross-regional restructuring, in 2005 To train

one or two large international competitive groups in the modern paper industry. In

terms of capital policies, it is suggested that the state give support to key enterprises in

the form of long-term interest-free loans, gratuitous subsidies and national debt

discount, and give them preferential policies. In order to enterprises in the short-term

growth and foreign giants can compete with the paper industry aircraft carrier.

Experts at the meeting believed that the use of bamboo pulp paper, can effectively use

the rich resources in the central and western regions, with the national policy of

returning farmland to forests. The construction of bamboo raw material base not only

solves the problem that farmers can "retreat from farming", but also protects the

ecological environment and promotes the development of the western region.

Bamboo resources are abundant The process of bamboo, pulp and paper integration in

the central and western regions of China made it the leading leader of local

agricultural industrialization, and they found a way to increase income and become

rich. For example, cultivation of green hybrid bamboo in Guangxi: the investment of

19
fertilizer application in the first three years of each mu is about 450 yuan, the third

year can be harvested, and the cutting can be continued for 20 or 30 years. According

to the average fresh bamboo production of 3 to 5 tons per mu, the current purchase

price per ton of bamboo is 300 yuan. After one afforestation, it is not necessary to

replant, only reasonable fertilization management and protection are required to

increase the annual income for farmers and local finance by 600 to 1000 yuan per mu.

Medium and long-term economic, social and ecological benefits are even more

evident. At the same time, it can also improve and Protecting the ecological

environment in the upper and middle reaches of the Yangtze River is of great practical

significance to the conservation of soil and water, the conservation of water resources

and the protection of forest resources. Some people predict that after joining WTO,

bamboo pulp technology will be our paper industry and foreign struggle. It is

predicted that the demand for wood pulp in China's paper industry will reach 9.25

million tons in 2005 and 17.8 million tons in 2015. If we rely on the development of

wood pulp completely, it is bound to be limited by the long rotation period of wood

and the limited supply of wood raw materials in the short term. According to expert

analysis, bamboo-wood development is planned to develop 3 million tons of bamboo

pulp by 2005 and 8 million tons by 2015. Only with bamboo pulp, can the raw

material structure of paper industry be adjusted reasonably. There is no doubt that

bamboo pulp papermaking with technical and market advantages is a huge gold mine

waiting to be excavated!

20
 COMPETITORS

COMPETITORS ANALYSIS

1. Determine who your competitors are.

2. Determine what products your competitors offer.

3. Research your competitor’s sales tactics and results.

4. Take a look at your competitors' pricing, as well as any perks they

offer.

5. Ensure you're meeting competitive shipping costs

There is no competition in the market

because it is a very new service which has
its own value and has no other alternatives

21
 SWOT analysis — strengths, weaknesses,

opportunities, threats —
It is something many MBA students learn. Unfortunately, businesses frequently treat

SWOT analysis like geometry — one of those things you have to learn but will never

use again. But SWOT analysis offers a concrete, real-world audit of a company and a

scan of its relative standing within an industry.

While strengths and weaknesses are internal, they are measured on a comparative

benchmark. Opportunities and threats are external — your opportunity is usually at

the expense of another company in your industry. Likewise, threats come from the

competition. Therefore monitoring your competition on an ongoing basis is a

necessity.

STRENGTH:- No Competitors

WEEKNESS:- Not Much Knowledge about the Current scenario.

OPPORTUNITIES:- Can float nationwide if excels in small scale .

THREATS:-As its startup high risk as well as high capital required.

CONCLUSION OF SWOT ANALYSIS

Using SWOT analysis on a regular basis, perhaps once or twice a year, will give you a

broad overview of ecommerce industry trends, show you where you stand in relation

to your competitors, and provide insights into mitigating your weaknesses and

building on your strengths.

22
 TECHNICAL FEASIBILITY

A technical feasibility study assesses the details of how you intend to deliver a

product or service to customers. Think materials, labor, transportation, where your

business will be located, and the technology that will be necessary to bring all this

together. It's the logistical or tactical plan of how your business will produce, store,

deliver, and track its products or services.

A technical feasibility study is an excellent tool for both troubleshooting and long-

term planning. It can serve as a flowchart of how your products and services evolve

and move through your business to physically reach your market.

It's the logistical or tactical plan of how your business will produce, store, deliver, and

track its products or services.

Yes it is technically possible by analyzing through (PESTEL)

23
 MARKET ANALYSIS

A market analysis is a quantitative and qualitative assessment of a market. It looks

into the size of the market both in volume and in value, the various customer

segments and buying patterns, the competition, and the economic environment in

terms of barriers to entry and regulation.

How to do a market analysis?

The objectives of the market analysis section of a business plan are to show to

investors that:

• you know your market

• the market is large enough to build a sustainable business In order to do that I

recommend the following plan:

Demographics and Segmentation Target Market

Market Need Competition Barriers to Entry Regulation

Segmentation helps marketers to be more efficient in terms of time, money and other

resources. Market segmentation allows companies to learn about their customers.

They gain a better understanding of customer's needs and wants and therefore can

tailor campaigns to customer segments most likely to purchase products.

One technique used to identify a target market is market segmentation. The five basic

forms of segmentation are demographic (population

statistics), geographic (location), psychographic (personality or lifestyle), benefit

(product features), and volume (amount purchased).

24
 POSITIONING OF THE BUSINESS IN MARKET

Positioning is a marketing concept that outlines what a business should do to market

its product or service to its customers. In positioning, the marketing department
creates an image for the product based on its intended audience.

This is created through the use of promotion, price, place and product.

There are five main strategies upon which businesses can base their positioning.
• Positioning based on product characteristics....
• Positioning based on price....
• Positioning based on quality or luxury....
• Positioning based on product use or application....
Positioning based on competition. Types of positioning in marketing

• Pricing. Pricing is an essential factor that impacts the decisions of most

customers...
• Quality. Quality can help rebuff most pricing wars....
• Differentiation....
• Convenience....
• Customer service....
• User group....
• Create a strong competitive position....
• Improve sales.

25
 COSTING AND PRICING OF THE SERVICE

Many service-based businesses struggle to come up with a fair and profitable pricing

strategy. Unlike product pricing, you can’t exactly quantify all the costs that go into

providing a service. The expenses that go into providing a service are more subjective

than the expenses that go into making a product. How much you charge customers

doesn’t always directly correlate with the amount you pay to perform services.

In service industries, finding a target profit margin is not as simple. You don’t have an

original price to reference. Instead, your pricing formula for services should account

for the intangible aspects of running your business, such as time and value.

In short, pricing services is tricky business.

As a service-based business, it’s difficult to price services because we need a model

that is scalable yet flexible enough to solve our customers’ problems. Offering a

scalable, one-size-fits-all price can turn potential customers off because their needs

are typically not like those of your countless other customers. At the same time,

offering 100% custom pricing can limit growth because of the time required to quote

every facet of your services.‖

Your 6-step guide

Because there is not a set-in-stone method for pricing services, you have some

flexibility. Use the following six steps to learn how to price a service:

1. Calculate your costs

2. Look at the market

3. Know your customers

4. Consider time invested

5. Come up with a fair profit margin

6. Charge an hourly or per-project rate

26
 PRICING STRATEGIES FOR BUSINESSES

There are many different pricing strategies to choose from. Here are 11:

1. Market penetration strategy: Set prices low to grow market share. Then

increase your rates over time as your customer base grows. Admittedly, this isn’t a

common pricing strategy for service businesses, but it can help you grow your

customer base quickly. The big problem with this approach is that some customers

may associate the lower price with an inferior level of service. You will also have to

work a lot harder to coveryour costs

2. Price skimming: The opposite of a market penetration strategy. Here you set a

high price and lower it over time. Again, this isn’t your typical pricing strategy for a

service business. But it may work if you have something special to offer. The pros are

that you’ll maximize your profits upfront and grow a more sustainable business. The

big drawback, however, is that if you can’t justify the price, you’ll struggle to get your

business off the ground.

3. Premium pricing: Charge higher prices because you have something that

makes you unique. For example, do you offer a warranty or service guarantee that

your competitors do not? Do you use exclusive tools or technology that make your

business easier to work with and deliver results that standout?

4. Economy pricing: Set low prices because overheads are low. Your costs may

be low for several reasons. Perhaps you use software to org anize and manage your

business instead of hiring an assistant. Or maybe you have a special arrangement with

one of your suppliers which allows you to get inexpensive supplies.

5. Cost-plus pricing: Calculate the cost to deliver your services and add a margin

for a profit. For example, if you know your time and materials cost $200, and you

want to make a 20% profit margin, simply charge $240. This is a straightforward

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pricing strategy, but it can cost you money because you may end up setting a lower

price than what customers are actually willing today.

6. Psychological pricing: Prices based on the psychological impact they have.

For example, it’s believed that odd prices like $19.97 are more attractive than round

numbers like$20.00.

7. Competitive pricing: Charge according to what the competition charges. While

competitors can give you a good idea of where to start, remember that your business

is unique. Just because someone is charging a specific price doesn’t mean you should

match or undercut them.

8. Bundled pricing: Also known as packaged pricing, this strategy involves

bundling various services together and charging one price. Bundled services are

usually cheaper than if customers were to purchase each service individually. If done

correctly, this technique is a great way to upsell more services and boost your

profits—as Dave Moerman of Revive Washing notes:

―Our house washing package is our most requested and most profitable service. This

is a full soft wash of siding, windows, and gutters).

Homeowners like this package because it takes care of all services with one detailed

visit…For our crew to be profitable, we have to do a certain amount of revenue per

day. Small jobs are okay to slot in, but we like to have a good-size house wash for

each crew for each day. From a profitability perspective, it’s much better.‖

9. Tiered pricing: Offer clients the option of choosing between different levels of

service or packages. In window cleaning, for example, you can offer a basic package

for $99 (outside cleaning only), a standard package for $149 (inside and outside), or a

deluxe package for $199 (inside, outside, tracks and sills). Each package offers

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incrementally more value, and the difference in price gives the consumer a chance to

consider what they are willing tospend.

10. Value-based pricing: Charge a flat fee based on the value (benefits) your

service provides. Value, for example, could mean saving the customer time or giving

them peace of mind. Before quoting a client, make sure you’re clear on the benefits

your service provides and, in turn, what they’re actually paying for.

For example, parents who use house cleaning services are not really paying for the

service itself, but the time it frees up so they can spend with their children. Charging

for your services based on value lets you charge a premium and protects you from the

all-too-common price haggling that occurs with some customers.

11. Hourly-based pricing: Estimate how long a job will take and multiply it by

your hourly rate. Although this pricing strategy may be suitable when starting a

business, do use it with caution as it has its downfalls:

You aren’t rewarded for becoming better and faster at what you do

Clients may feel you’re purposefully taking your time on a job so you can earn more

The focus is on the cost of the service rather than the value, which opens you up to

price haggling

Factors to Help You Choose the Right Service Pricing Strategy

Your overheads. If you have lower overheads, you can charge more competitive

prices. Conversely, if your costs are high, then competing on price isn’t viable.

You’re better off charging a premium based on a unique differentiator.

 Your goals. If you’re a new business looking to get customers fast, you may opt for

a market penetration strategy to achieve rapid adoption.

 How established you are. If you’ve been operating for a few years and want to

grow faster and sustainably, offering packages is a good option. Providing

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 packages helps you sell more by turning the intangible (your service) into

something tangible (a product), which makes it easier for customers to buy.

 The Bottom Line on Pricing Strategies for Service Businesses

 Pricing services is generally harder than pricing products as each job is different,

and you have to grapple with your own experience, insecurities, and specifics of

each job. On top of that, pricing is complex with many different pricing strategies

to choose from.

 Of course, just because something seems difficult, doesn’t mean it is or that you

shouldn’t try. After all, the more jobs you bid for, the more you’ll learn about what

works and what doesn’t. It’ll only be a matter of time before you find a pricing

strategy that’s right for your business.

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 FINANCIAL FEASIBILITY OR AVAILABLE SOURCES OF FUNDS

Putting all your eggs in one basket is never a good business strategy. This is

especially true when it comes to financing your new business. Not only will

diversifying your sources of financing allow your start-up to better weather potential

downturns, but it will also improve your chances of getting the appropriate financing

to meet your specific needs.

Keep in mind that bankers don't see themselves as your sole source of funds. And

showing that you've sought or used various financing alternatives demonstrates to

lenders that you're a proactive entrepreneur.

Whether you opt for a bank loan, an angel investor, a government grant or a business

incubator, each of these sources of financing has specific advantages and

disadvantages as well as criteria they will use to evaluate your business.

Here's an overview of seven typical sources of financing for start-ups:

1. Personal investment

When starting a business, your first investor should be yourself—either with your

own cash or with collateral on your assets. This proves to investors and bankers

that you have a long-term commitment to your project and that you are ready to

take risks.

2. Love money

This is money loaned by a spouse, parents, family or friends. Investors and bankers

considers this as "patient capital", which is money that will be repaid later as your

business profits increase.

 When borrowing love money, you should be aware that:

 Family and friends rarely have much capital

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 They may want to have equity in your business

 A business relationship with family or friends should never be taken lightly

3. Venture capital

 The first thing to keep in mind is that venture capital is not necessarily for all

entrepreneurs. Right from the start, you should be aware that venture capitalists are

looking for technology-driven businesses and companies with high-growth

potential in sectors such as information technology, communications and

biotechnology.

 Venture capitalists take an equity position in the company to help it carry out a

promising but higher risk project. This involves giving up some ownership or

equity in your business to an external party. Venture capitalists also expect a

healthy return on their investment, often generated when the business starts selling

shares to the public. Be sure to look for investors who bring relevant experience

and knowledge to your business.

 BDC has a venture capital team that supports leading-edge companies strategically

positioned in a promising market. Like most other venture capital companies, it

gets involved in start-ups with high-growth potential, preferring to focus on major

interventions when a company needs a large amount of financing to get established

in its market.

4. Angels

Angels are generally wealthy individuals or retired company executives who invest

directly in small firms owned by others. They are often leaders in their own field who

not only contribute their experience and network of contacts but also their technical

and/or management knowledge. Angels tend to finance the early stages of the

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 business with investments in the order of $25,000 to $100,000. Institutional venture

capitalists prefer larger investments, in the order of $1,000,000.

In exchange for risking their money, they reserve the right to supervise the company's

management practices. In concrete terms, this often involves a seat on the board of

directors and an assurance of transparency.

5. Business incubators

 Business incubators (or "accelerators") generally focus on the high-tech sector by

providing support for new businesses in various stages of development. However,

there are also local economic development incubators, which are focused on areas

such as job creation, revitalization and hosting and sharing services.

 Commonly, incubators will invite future businesses and other fledgling companies

to share their premises, as well as their administrative, logistical and technical

resources. For example, an incubator might share the use of its laboratories so that

a new business can develop and test its products more cheaply before beginning

production.

 Generally, the incubation phase can last up to two years. Once the product is ready,

the business usually leaves the incubator's premises to enter its industrial

production phase and is on its own.

 Businesses that receive this kind of support often operate within state-of-the-art

sectors such as biotechnology, information technology, multimedia, or industrial

technology.

6. Government grants and subsidies

 Government agencies provide financing such as grants and subsidies that may be

available to your business. The Canada Business Network website provides a

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 comprehensive listing of various government programs at the federal and

provincial level.

 Criteria

 Getting grants can be tough. There may be strong competition and the criteria for

awards are often stringent. Generally, most grants require you to match the funds

you are being given and this amount varies greatly, depending on the granter. For

example, a research grant may require you to find only 40% of the total cost.

 Generally, you will need to provide:

 • A detailed project description

 • An explanation of the benefits of your project

 • A detailed work plan with full costs

 • Details of relevant experience and background on key managers

 • Completed application forms when appropriate

 Most reviewers will assess your proposal based on the following criteria:

 • Significance

 • Approach

 • Innovation

 • Assessment of expertise

 • Need for the grant

 Some of the problem areas where candidates fail to get grants include:

 • The research/work is not relevant

 • Ineligible geographic location

 • Applicants fail to communicate the relevance of their ideas

 • The proposal does not provide a strong rationale

 • The research plan is unfocused

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 • There is an unrealistic amount of work

 • Funds are not matched

7. Bank loans

 Bank loans are the most commonly used source of funding for small and medium-

sized businesses. Consider the fact that all banks offer different advantages,

whether it's personalized service or customized repayment. It's a good idea to shop

around and find the bank that meets your specific needs.

 In general, you should know bankers are looking for companies with a sound track

record and that have excellent credit. A good idea is not enough; it has to be

backed up with a solid business plan. Start-up loans will also typically require a

personal guarantee from the entrepreneurs.

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 LIMITATIONS
The following are some of the factors which put a limit on the growth of a business:

1. Shortage of Labour or Capital:

If increased supplies of trained labour are not available, the growth of a business will

be automatically checked.

In the same way, if fresh capital cannot be raised, expansion stops. But these are not

insurmountable obstacles.

2. Nature of the market: If demand is limited or fluctuating, it will be imprudent

to increase the size of the business. The nature of demand is the most

importantlimitingfactor.Italmostsettlesthematter.Ifindividualtasteshavetobe satisfied,

large-scale production is ruled out.

3. Managerial Capacity: Another serious limitation comes from the capacity of

the manager. A point is reached in the expansion of a business beyond which it is not

possible for the manager to control it efficiently. There is a limit to what a man can

successfully manage. Beyond that point, supervision will become lax, materials will be

wasted and machinery mishandled. Cost will over take profits, and, in the end, the

profits may vanish. The limit is reached when the marginal revenue is equal to the

marginal cost.

4. Nature of the Industry: In some industries, large-scale production is out of the

question. They require close personal supervision, e.g., jewellery-making and tailoring.

Or, there are industries where there is not much scope for the use of

machineryanddivisionoflabour, e.g., agriculture, fruit and vegetable gardening,etc.

Bulky articles like bricks can only be made on a small scale, for it will not pay to carry

them over long distances

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 CONCLUSION

The company's management is confident that The Company can achieve its

aggressive sales forecasts, generating total sales of approximately 10000 Rs,

15000 Rs and20000Rs in upcoming years, after the launch respectively. In addition,

The Companies' management has carefully considered its market, potential customer

base, and its ability to grow its sales average to capture market share in the E tailoring

industry.

The Company has the potential to become a highly regarded resource in local,

regional, national, and international markets. Due to the company's aggressive

marketing strategy, establishment of the company as a "unique" entity in its industry,

careful development of its products coupled with strategic partnerships with some of

the industry's leaders, and the company's profitable revenue model, The Company has

the potential to provide lucrative returns to potential investors.

For The Company to achieve status as an industry leader, it must secure initial capital.

This capital will be used for start-up costs, to establish a reputable storefront, and to

further develop the business, business infrastructure, internal systems, product

development, and extensive marketing and geographic positioning.

Providing that the company is able to acquire its funding requirements,

The Company will be able to achieve operational success for many years to come.

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