Final Project Spring 2023

Entrepreneurship

Submitted To:
Dr. Muhammad Awais Ilyas

Submitted By:
Muhammad Muzamil Hussain (70136657)
Ahmed Bilal (70137144)
Ansar Rasul (70136918)
Saba Tufail (70078168)
Fatima Naseem (70139959)

Lahore Business School

The University of Lahore

 TABLE OF CONTENTS
Executive Summary .................................................................................................................................... 3
Introduction of the company: .................................................................................................................... 4
Mission: ........................................................................................................................................................ 5
Vision: .......................................................................................................................................................... 5
Objectives: ................................................................................................................................................... 5
Market Analysis .......................................................................................................................................... 5
SWOT Analysis ....................................................................................................................................... 5
PESTEL Analysis .................................................................................................................................... 7
Porters Model .......................................................................................................................................... 9
Customer Analysis: ................................................................................................................................... 10
Competitor Analysis: ................................................................................................................................ 11
Feasibility Analysis: .................................................................................................................................. 11
Product Analysis ................................................................................................................................... 11
Product Desirability .............................................................................................................................. 11
Concept Test .......................................................................................................................................... 11
Internet Research .................................................................................................................................. 12
Organizational Feasibility Analysis ..................................................................................................... 12
Product and Process Strategies: .............................................................................................................. 12
Product Initiatives: ............................................................................................................................... 12
Cost Strategy: ........................................................................................................................................ 13
Quality Strategy: ................................................................................................................................... 13
Organizational Structure ......................................................................................................................... 13
Marketing Plan: ........................................................................................................................................ 14
4P’s ......................................................................................................................................................... 15
Product ............................................................................................................................................... 15
Price.................................................................................................................................................... 15
Place ................................................................................................................................................... 15
Promotion .......................................................................................................................................... 15
Segmentation ......................................................................................................................................... 15
Targeting................................................................................................................................................ 15

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 Positioning ............................................................................................................................................. 16
Marketing objective .............................................................................................................................. 16
Survey Market....................................................................................................................................... 16
Marketing assumption .......................................................................................................................... 16
Marketing Strategy ............................................................................................................................... 16
Financial Plan ............................................................................................................................................ 16
Sample list of resources required ........................................................................................................ 16
Sample Cost Estimation ....................................................................................................................... 17
Operating cost and Expenses ............................................................................................................... 18
Revenue Generation.............................................................................................................................. 18
Depreciation on Fixed Assets ............................................................................................................... 18
Income Statement.................................................................................................................................. 19
Balance Sheet......................................................................................................................................... 19
Break Even ............................................................................................................................................ 20
Ratio Analysis ........................................................................................................................................ 20
Operating Cash flow Estimation ......................................................................................................... 20
Regulatory & Compliance Requirement: ............................................................................................... 21
Recommendations/ Conclusions: ............................................................................................................. 22

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 Executive Summary
We are going to launch a unique product keeping in mind past COVID situation, where
sanitization of everything was necessary to avoid or lessen the chance of COVID again. We are
launching a sanitizing glove which we can wear in our hands and it is portable. This will contain
sanitizer and it will be placed in a latex pocket made inside the latex glove and connected with the
sanitizer. Whenever we want to sanitize anything, we would just need to press the glove onto
anything that we need to sanitize, that particular thing will be safe for use afterwards.

This product is made with minimum resources, because the things used to make this
product are easily available at cheap prices in the market. It is a cost-efficient product that will be
available to all the markets and medical stores and ever general public will be able to use this
product as it is now a part of the COVID 19 precautions.

In this business we are going to discuss the marketing plan of our product and the financial
plan along with the product and process strategies that will be necessary to sell our product. That
all points are discussed in detail below. This is new idea and we expect that we will be able to
capture market and will be able to change the trends.

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Introduction of the company:

San Plus is a medical company which deals with the product related to healthcare. This
company was formed in December 2021 with an entrepreneurial idea and products. Our aim is to
provide safe lifestyle to the people in situation like Covid. We understand that the first step to
living your best life is good and safe health. Everything we make is designed to help you. For this
purpose, we are working day and night to facilitate our customers. We help to improve the health
of millions of people by developing and manufacturing innovative healthcare products. We are
building a stronger purpose and performance culture underpinned by our values and expectations.

We came on track in the city of traditions Lahore, the heart of Pakistan with the assurance
to firmly adhere with international quality standards. We are committed in the execution of best
ethical values of entrepreneurship, strong long lasting working bond. We are trying to be the leader
of the market in coming era. We are maintaining exclusive agreements with a number of partners
for selling and manufacturing of products.

Apart from all the health care products we are going to launch the “Sanitizer Glove”. As it
will help in preventing the spread of viruses in future as well as in present after the outbreak of
Covid, so we all have to follow the rules in order to make sure the safety of our loved ones and
ourselves. So, these gloves will be very useful, for example if we go to the superstores and buy
things, we make sure that we sanitize them before bringing them home and once we come back
home, we spray them in order to sanitize them with Dettol water, instead of doing this we will
wear the glove and press the glove that will release sanitizer and we will be able to sanitize the
products that we just bought and it will reduce the pricings from our life too and less time will be
consumed.

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Mission:
“Our mission is to provide people safe and hygienic environment in by providing the
products like Sanitizing Glove. To provide healthcare with excellence in quality, service, and
access”.

Vision:
“Our vision is to be a leader in delivering person care in public. To accelerate progress
against disease at a global level. Keep introducing new products in the market which can help
people to keep their life style safe and try to innovate the existing product for the betterment of the
people”.

Objectives:
To provide the product at cheapest cost to customers. To increase the share of the company
in the market by their innovative products. Maintain the quality of products according to
customer’s perception and to make customer experience much better and to won their trust.

Market Analysis
SWOT Analysis

Strengths
The strengths of Sanplus looks at the key aspects of its business which gives it competitive
advantage in the market. Some important factors in a brand's strengths include its financial
position, experienced workforce, product uniqueness & intangible assets like brand value.

• Product is seen as strong and adds on trustworthiness.

• Product comes from a reputable company with a strong legacy.
• Strong customer brand loyalty of all those using their products.
• Sanplus has products like antiseptic liquid, soaps, sanitizers, body wash etc.
• Strong advertising and marketing campaigns through TVC's, OOH hoardings, print media
& online ads.

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Weaknesses:
The weaknesses of a brand are certain aspects of its business which are it can improve to
increase its position further. Certain weaknesses can be defined as attributes which the company
is lacking or in which the competitors are better.

• Despite excellent product, limited penetration in rural markets

• Competition from other similar products means stagnant market share for Sanplus.

Opportunities:
The opportunities for any brand can include areas of improvement to increase its business.
A brand's opportunities can lie in geographic expansion, product improvements, better
communication etc.

• Leverage the powerful brand equity associated with the Sanplus to make it an everyday use
proposition.
• Tie-ups with schools, hospitals, hotel chains etc.
• Better penetration in rural markets.

Threats:
The threats for any business can be factors which can negatively impact its business. Some
factors like increased competitor activity, changing government policies, alternate products or
services etc. can be threats.

• Other main players in the antibacterial category can affect market share of Sanplus.
• Other emerging players and alternatives available.
• People opting for Ayurveda & natural treatments can reduce business.

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PESTEL Analysis
The PESTLE Analysis can be explained as follows:

Political Factors:

Product can be placed as a brand disinfectant and antiseptic. To be positioned as the best
in such an industry requires a great amount of goodwill across nations by diversifying the
systematic risks of political factors. It is close to the health sector and which is impacted by many
factors like tax legislation changes, insurance mandates and consumer protection. This is because
government spending on this sector is affected by the subsidies that is tax policy changes.

Especially with the changing healthcare bills and plans political factors could have great
impact on the company’s costs. Any pricing regulatory mechanism adopted by the government
would also affect its profitability and growth aspects. Level of regulation by the government in the
consumer goods sector is also an important factor that product must consider along with Industry
safety regulations in the same sector.

Economic Factors:

There are various macro and micro economic factors that may have an impact on the
product such as inflation, growth rate, unemployment and interest rates etc. as they impact
consumer spending.

The exchange rates and the economic condition of the country affects the company’s ability
to start operations in other nations. On the other hand, the financial markets of the nation’s impacts
how easy or difficult would it be for product to raise capital and thereby serve in those countries.
The discretionary income. The discretionary level of income in the nation will help the company
to analyze that which target group should be aimed at. A high level of unemployment in the nation
will also be helpful for the company to get cheap labor as there would be a greater supply of labor
compared to its demand as people would be willing to work for a lower wage that will result in
lower costs. The stability of the currency of a country is also important as instability of the currency
would discourage international investors. The stability of the currency of a country is also
important as instability of the currency word discouraged international investors and an exchange
rate of the country has a great impact on the profitability of the company as well.

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Social Factors:

The society that the company would operate in good affect the type of product that would
sell the most. Cultures values beliefs and attitudes that most of the population has in the community
will have a great impact on the overall perception of the company and its product. Moreover, the
pandemic has increased the importance of a brand like Sanplus. In the form of marketing that
would help the company promote its brand would also depend on the social factors for example
the demographics of the population would help to determine that how a production be marketed.
Efficient media and promotional campaigns by the company by delivering great messages and
touching hearts of the people would help them to have a strong advocate in the community and
healthy and capture the maximum market share. Factors like health and environmental
consciousness would also affect the popularity of such a product as it is not only a part of the
personal and household goods but also related to the health sector.

Technological Factors:

A company like Sanplus should continue investing a lot in the search and development
department as it would help to strengthen by taking the first mover advantage with the best possible
technology in the market. Adopting to better technologies also helps in cost cutting thereby
increasing company profitability. Carefully analyzing a new technologies effect on the brand’s
products and transforming fast without giving competitors a chance to do so will enable then to
have a dominant strategy. In the current situation where technology is developing at such a fast
pace the improvement that the technology would bring along should be tested thoroughly as
investing in the wrong technology might lead the company to losses.

On the other hand, consistently innovating on such products also plays a major role as there
is a lot of competition in the market and this could prevent obsolescence in the near future.

Legal Factors:

Sanplus is driven by several legal factors as well. Playing a major role in the healthcare
sector get all these surrounded by various legal factors. Apart from the health and safety laws that
implement proper regulation there are various laws to also ensure a certain level of quality at best
prices. This is to help the customers be safe and prevent them from being charged inappropriately.
There is also anti-trust law in place in the personal and household goods industry which are to be

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followed throughout the nation to avoid predatory business practices. Discrimination and
employment laws are also to be taken care of to ensure that everybody is treated appropriately
regardless of their gender, age, disability, religion or culture. Data protection laws are also in place
to help every company ensure its competitive edge in the market. These policies insure efficiently
protecting its workers and Sustaining in the industry for a long term.

Environmental Factors:

Standards of environmental protections differ from one industry to the other and there are
norms in place for every company to adapt to for reducing environmental hazards as much as
possible. These standards are set for industries as a whole and no company should exceed the level
of harm to the environment. Corporate social responsibility is another factor that determines how
acceptable or likable a company is. As a part of the corporate social responsibility a company like
Sanplus may adapt to renewable sources of energy and reduce the usage of plastic in its products
packaging.

The company must also ensure that its products waste is recycled or disposed in a proper
manner. Weather change, climate, air pollution and water pollution in a particular nation may also
affect may affect the company’s factories working. Hence a proper analysis of the existing market
must be done before entering into.

To conclude, the above Sanplus PESTLE Analysis highlights the various elements which
impact its business performance. This understanding helps to evaluate the criticality of external
business factors for any brand.

Porters Model
Substitute Products:

In order for a product to be a viable substitute, it must fulfil the same function as the product
which it is substituting. Substitute products face the same barriers for entry that medical devices
face, particularly with respect to long lead times to market. Barriers for entry will not stop
substitute products from evolving, but will make the emergence of new substitutes more gradual
than if the barriers for entry were lower.

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Supplier Power:

The suppliers to the industry include manufacturing companies included in many sectors.
Global markets also allow access to entities on various continents and in differently industrialized
economies. It is a large and diverse to become a direct competitor in the market that it serves. It
applies only to those suppliers, who provide complex components that are critical to the
manufactures.

Existing Rivalry:

There are many firms in the medical device industry competing with each other for the
same market. The existing competition is very strong due to following points.

➢ Low product differentiation in some key markets,

➢ Low switching costs by hospitals,
➢ Changes connected with reimbursement, regulatory.

Buyer Power:

Purchasers of healthcare facilities are physicians, hospitals, nursing homes for the long-
term sick and households. In relation to the whole field of healthcare, buyer power could be
described as moderate. In benefit for buyer power there are two key reasons - buying power is
becoming more and more consolidated in the industry, and medical reimbursement policies are
evolving.

External Forces:

Several external forces exert a significant effect on this industry, such as government
involvement regulatory agencies and reimbursement policies.

Customer Analysis:
Customers of our product will be general public, because this is the problem of every
individual and every individual wants that his/ her life would be better and safe from different type
of viruses. We want that every person should be benefited from our product or business.

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Competitor Analysis:
As this is new idea in the market and this type of product is not available, so there is chance
that we have till now no competitor product in market, but there are several firms which can launch
this product after some time and we had to do some innovations in our product to compete in the
market.

In this market, gel is the largest product form segment of hand sanitizer, whereas
development of hospitals is the largest application. Growth in various segments of the hand
sanitizer market is given below:

Feasibility Analysis:
Product Analysis
The product which we are going to launch have huge market demand, because everyone
wants safe life style especially in current era. So, the product which we have launched is
completely fulfill the need of the people and people will defiantly by this. Customers wants the
product which can help them in sanitizing the things around them more effectively and efficiently.

Product Desirability
Yes, it is the right time to introduce this type of product in the market, because products
like full sanitizer is available in the market and we have to specially carry them, the advantage of
this product will be that we can wear it on the hands and it will save the concept of space.

Concept Test
We have created a concept test to have an idea about the product and distributed among
the people and gained positive feedback which gives us a positive motion to enter into the market

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with a unique concept. The target audience is general public and people of any age group can use
this product peacefully.

The product is unique from the competitors in this way that they are providing this
sanitizing material in the form of bottle, and to handle that is little bit issue, so we had solved the
issue of handling the product in the form of gloves.

Internet Research
We also conducted internet research in this way that we created different questions related
to the product and posted on social media like YouTube surveys, Poll on Instagram and Facebook.
By this survey we also came to know about the reviews of people regarding the product.

Organizational Feasibility Analysis

To run any organization, it’s compulsory that organization should have maximum
resources and powers to lead in the market. To we have hired one of the best management team
and they are very expertise in their relevant field. They have maximum power to lead the whole
organization effectively and efficiently. The management team have much passion and extent with
entrepreneurial mind set.

Product and Process Strategies:

The objective of a process strategy is to build a production process that meets customer
requirements and product specification within cost and other managerial constraints.

The process selected will have a long-term effect on efficiency and flexibility of production
as well as on cost and quality of the goods produced. Therefore, the limitations of a process strategy
are at the time of the process decision.

Product Initiatives:
The main initiative of the products is to provide peaceful and hygienic environment. By
launching this product, we believe that people will be feel comfortable after wearing this product
and will be mentally satisfied against hygienic problem.

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Cost Strategy:
We are trying to provide the product with the less cost as it can be. We are using the
material which is cheap but we are not compromising on the quality. By using easily available we
can reduce the end cost and it will directly benefit the end user.

Quality Strategy:
As we discussed earlier that we want no compromise on the quality of the product, so we

contacted those suppliers which provide the raw material of quality standards. We believe that
customers should be provided the product which fulfill the quality standards. A process always
involves the use of an organization’s resources to provide something that is far more valuable.

Organizational Structure
Without the proper management organization can’t survive. For proper flow to information
between departments it’s necessary to have proper hierarchy system to manage work load. To
mitigate this conflict the hierarchy system of our organization is as follow:

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Marketing Plan:
Marketing basically is a term that can be defined in some words that it is the Awareness of
the products existence. This is a very vast field actually and is the most important term in a business
because just making tings is not going to make you profit but to sell those ready products is the
main thing a company focuses on and it is done under the supervisions of the marketing
department. Medi Plus, also like the other companies has the marketing plan to sell their products
to their customer by educating them that what are the effects of their products and what the pros
are and maybe cons of the products they are manufacturing. As we know that the market is very
dynamic that anytime the situation changes so there is a must that the marketing planning
perspective can be expected that it might change.

Business also runs on the 5 basic concepts of marketing that helps them to be more
innovative and they are more efficiently working on these and they are as follow:

• Production concept.
• Product concept.
• Selling concept.
• Marketing concept.
• Social Marketing concept.

All of these are very important but the most important of all is the social marketing nowadays.

As we are in a pandemic situation, we spend more time on the internet, mobiles, tablets,
laptops and televisions etc. we are more open to know about the products by video advertisements
and by making informational videos and posting them on social media and they are more effective
when people see them. Medi Plus has a marketing department that helps the company to sell their
products more effectively through the means of social media.

Marketing plan is one of the leading back-bone of any product. If organization had
launched a product and they had not decided the plan to market the product then there is chance
that their product may not be successful. To determine the market plan there are some techniques
to market the product more efficiently and successfully. That include 4P’s and STP (Segmentation,
Targeting and Positioning) model.

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4P’s
Product
The product which we have launched is the need of current era, because every person is
concerned about the hygiene and sanitization. They want a product which can help them in solving
the problem of sanitizing things more easily.

Price
Customers want a product that is cheaper to them. The product which we have launched is
at cheap price because the material from which product is been made is locally and easily available.
This helps us in making the cost of product low and in the reach of people.

Place
The product will be easily available to customers. It will be available at all pharmacies,
Super market and all general stores. We believe on the motto of “Be Local”. When product will
be easily available and near to customer this may increase the sales to.

Promotion
As we are large company in the market so we will collaborate with other companies and in
the early stages we will provide the product free of cost with other products like, if a customer is
buying medicine, we will give them a sample on the trial bases.

We are going to use the STP technique in order to know our market that we are going to
work in and which customers are we going to target to sell our product.

Segmentation
As we described in 4P’s model that our product is for every person of any age, because it’s
right of every person to live safe and healthy life. So, we will segment the market according to our
product and we will divide the market into segments so that we are able to see that where is the
most need of our product.

Targeting
After the segmentation of the market, we will be able to know that where is the most need
of our product that we are making. Our target markets will be all the medical stores, superstores,
general stores and malls. This product can be used by the people of all of the ages.

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Positioning
Now we will position the product in the selected target markets and make sure that the
product is supplied to the target markets and they are available for the customers.

Marketing objective
We plan to make a product that is going to be a very useful asset for the healthy lifestyle
of the people and that will help them live a better and healthy life. Our objective is to launch a new
product that will deliver the value in order to help the people of the world for their health.

Survey Market
We have to perform a survey in the market in order to know that if there is a need of product
in the market and if anyone else is making this product or not.

Marketing assumption

We have to assume that the market is very much competitive and our idea has to be very
innovative and we can use it to help others and make profits.

Marketing Strategy
The marketing strategy that we are going to use is that we are serving all the mankind to
achieve their health and save themselves in the COVID.

Financial Plan
For the startup of any setup financial plan is one of the important things. Without finance
we are unable to run any business or organization.

Our set up is based on Debt Financing, because this is entrepreneurial idea and we had not
much resources to bring it in front.

Sample list of resources required

Sr No Description
1 Assembling Plant
2 Land
3 Systems/ Computers

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4 Internet
5 Printers
6 Furniture
7 Electricity
8 Human Resource
9 Transporting Vehicles
10 Rent Expense
11 AC
12 Generators
13 Petty Cashes
14 Hand Sanitizers
15 Latex

Sample Cost Estimation

Sr No Description No of units Cost per unit Amount (RS)
(RS)
1 Assembling 4 500,000 2000,000
Plant
2 Land -
3 Systems/ 10 50,000 500,000
Computers
4 Internet 1 4000 4000
5 Printers 5 5000 25,000
6 Furniture - 100,000 100,000
7 Electricity - 20000/ Month 20,000
8 Human Resource 10 500,000
9 Transporting 4 1000,000 4000,000
Vehicles
10 Rent Expense - 100,000 100,000
11 AC 5 50,000 250000

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 12 Generators 2 100,000 200,000
13 Petty Cashes - 50,000 50,000
14 Hand Sanitizers 10 5,000 50,000
15 Latex 20 2,000 40,000
Total 12,339,000

Operating cost and Expenses

Sr No Description Per Month Cost Total cost per Annual Cost
(RS) month (RS) (Rs)
1 Internet 4000 40000 48000
2 Electricity 20000 20000 240000
3 Human Resource 50000 *5 500000 60000000
4 Rent Expense 100000 100000 1200000
5 Raw Material 7000 7000 84000
Total 6313000 62004000

Revenue Generation
Our target is to sell almost 83333 units per month and 1000000 units annually.

The selling price per unit is Rs 300.

= 300 * 1000000

= Rs 300,000,000 Annually Revenue

Depreciation on Fixed Assets

Sr No Description No of Cost per Total Depreciation Depreciation
Units unit amount Rate Expense
1 Assembling 4 50000 200000 15% 30000
Plant
2 Systems/ 10 50000 500000 15% 75000
Computers

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3 Ac 5 50000 500000 15% 75000
4 Transporting 4 1000000 4000000 15% 600000
Vehicles
5 Generators 2 100000 200000 15% 3000
Total 783,000

Income Statement
Description Amount
Revenue 300,000,000
Less: Operating cost & Expenses
Operating Expenses 62004000
Depreciation Expense 783,000
Total Expenses 62787000
Profit before tax 237,213,000
Tax rate @ 25% 59,303,250
NOPAT Rs 177,909,750

Balance Sheet
Assets Amount Equities Amount
Assembling Plant 2000,000
Systems/ Computers 500,000 Loan Bank 1 500,000
Printers 25,000 Loan Bank 2 2,500,000
Furniture 100,000 Bond Issuance 2,500,000
Transporting 4,000,000 Stock Issued 48,025,000
Vehicles
AC 250000
Generators 200,000
Petty Cashes 50,000
Total 53,525,000 Total 53,525,000

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Break Even
=62,004,000/ 300

= 206,680 Units

Ratio Analysis
Net Profit

= (177,909,750 / 300,000,000) *100

=59.30%

Return on investment

= (177,909,750/53,525,000) *100

=33%

Operating Cash flow Estimation

Description Y1 Y2 Y3 Y4 Y5
Savings 177,909,750 177,909,750 177,909,750 177,909,750 177,909,750
Less 4,071,870 5,552,550 1,850,850 863,730 0
Depreciation
@ 33%, 45%,
15%, 7%
MACARS
Rule
Operating 173,837,880 172,357,200 176,058,900 177,046,020 177,909,750
Profit
Less Tax 43,459,470 43,089,300 44,014,725 44,261,505 44,477,437
@25%
Add 4,071,870 5,552,550 1,850,850 863,730 0
depreciation
back
Operating 47,531,340 48,641,850 45,865,575 45,125,235 44,477,437
Cash flows

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Regulatory & Compliance Requirement:
The main regulatory authority of our business will be Drug Regulatory Authority Pakistan
DRAP. DRAP ensures that every drug, medical device or cosmetic, alternative medicine and
health product must have a certain standard of quality and is safe and effective for your use. The
regulatory functions performed by DRAP include registration and marketing authorization,
vigilance, market surveillance and control, licensing establishments, regulatory inspection,
laboratory testing, clinical trials oversight, pharmacy vigilance, and lot release of biological etc.

DRAP issues nationwide recall, suspension or cancellation of licenses and registration of

therapeutic goods, and safety alerts. It advises provincial governments on regulation related
matters of therapeutic goods. DRAP has established regulatory procedures for enforcement of
applicable laws. Regulatory procedures and evaluation process flows for applications of
therapeutic goods are available on DRAP website for information and understanding purpose for
stakeholders.

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Recommendations/ Conclusions:
As we know that the product, we are launching is the real need of era. Sanitizing is the
problem of every individual due to COVID. Our product is solution of the problem. We
recommend every person that at least one time they should try at least one time, when they will try
that product, they will feel really pleasant. The price of our product is much cheap as compared to
the similar products available in the market. The product is disposable and you don’t need to worry
about its reuse.

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