Business Plan blue print

1. 2012
Managing and Financing
Innovations MBA – 606/
Mr. Marcelly
Tunoy Mukherjee
[BUSINESS PLAN - TPAD]
A cost effective portable Tablet which is dedicated only to Readers, which would contain more than 50
books in a tablet, it is here to replace books.

2. 2
Business Plan “Tpad”
Idea
This product is unique in itself if I write this, it’s not completely true the technology has
advanced so much that it has launched various products of may be similar kind or has used
more dynamic approach like iPAD and other portable tablets which are soon going to replace
computers at offices and homes, having said that i also argue that this product is specifically of
one kind of use and that it what makes its unique and different from available pads in the
market, as we are quite aware that the only thing which is constant in this world is ‘Change’,
our focus today is to change or replace heavy books and bags that students carry to schools,
save paper (trees) looking into today’s environment, we have made a product called ‘Tpad’
(text-pad) which is a portable 9’ inch tablet with an operating system where you may load
books for a semester and hand over these tablets to students, the most unique feature of this
Tpad is that it comes with a preloaded software that would convert written text to spoken
words, all you need to do is select a part of text or a chapter and press a button you may be
able to listen to it. The product ‘Tad’ is the next generation text book that student would carry
to school, a device that is user friendly where if you don’t feel like reading text you may just
listen to it, vis-a-vis for schools and colleges it is a huge cost cutting by not buying course books
every year for new students and just uploading them in a Tpad and give it away(or may replace
submitted by Tunoy Mukherjee, Geneva Business School, May 2012-05-16

3. 3
it with the new semester Tpad). This not only makes the imparting of education easy but also
gives exposure to the technology.
Market Study
The introduction of a brand new type of device into the market is a challenging task. We’ve seen this
with the Apple Newton, PDA and Net books. Like any innovative product in the high-tech market, we will
have a monopoly until other products started to emerge. The Tpad will became a benchmark against
which all other tablets would be compared, ‘However with its unique focus on schools and colleges &
publishing house it will emerge as new age” book”.
To launch this product we will use the Blue Ocean Strategy
which looks at
Blue oceans, denote all the industries not in existence today – the unknown market space, untainted by
competition. In blue oceans, demand is created rather than fought over. There is ample opportunity for
growth that is both profitable and rapid. In blue oceans, competition is irrelevant because the rules of
the game are waiting to be set. Blue ocean is an analogy to describe the wider, deeper potential of
market space that is not yet explored
Six Principles of Blue Ocean Strategy Formulation

Focus on the big picture, not the numbers

Reach beyond existing

Overcome key demand organizational hurdles

Reconstruct market boundaries
submitted by Tunoy Mukherjee, Geneva Business School, May 2012-05-16

4. 4

Build execution into Strategy

. Get the strategic sequence right
Time line to begin the work and actual execution :
In Totality the whole process to begin will take somewhere around 6 months
a) Contacting Chinese company who may manufacture Tpad at the most cost effective price
possible ,also stating the fact that it should be user friendly and should have scope of up
gradation of different software, which would require certain steps:

Contacting all small manufacturing Units in China asking them if they can produce such
a pad with all these below mentioned specifications:

9’ inch Tablet

OS which has the capability to loading text books

Storage Capacity upto 50 books

Excellent screen good for reading

Software which converts text into speech

Rewriteable memory (you may upload and delete infinite times)

8 hour battery back up

Short listing the manufacturing units, & asking them for a price Quote per unit

Thereon finalising a company which gives the best price per unit and also the kind of
credit availability and if ordered in bulk time for manufacturing and exporting the
products to Geneva.
submitted by Tunoy Mukherjee, Geneva Business School, May 2012-05-16

5. 5

After negotiation and finalising expected cost per unit chf 80/- (VAT included)

Sinning a contract with the Chinese company and the patent rights
(whole process may take up to 2 months of hard work and once we have the physical
availability of Tpad we move on to the next step)
b) Hiring a Marketing executive for marketing and launch of the product in the Swiss Market, we
begin the process from a small geographical area from Geneva.
c) Identifying our Target Market and our target audience :

School

Business School

Educational Institutions (Govt & Private both)

Publishing House

Book Stores

libraries
d) Once we have identified our target market we focus on marketing our product through
presentations in school, and various other identified audience which would involve certain
steps:

Finding all schools and educational Institutions

Calling the Deans and Heads of the Institutions for an appointment for a meeting

short listing the Interested prospects and going for a second presentation with students
involved and getting a first-hand feedback of the product

If successful taking orders and giving them a delivery date of Tpad
(The whole process may take up to 3 months )
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6. 6
e) Once the above steps are taken then finally ordering the partner company to manufacture and
deliver the product.
(This whole process may take upto 6 months or may be even longer depending upon all factors
falling in place)
Organisation
Selling : To brief the selling process it is a “hit and trial ” method with a very low investment.
we produce the first 5 Tpad and go to different identified buyers give them a presentation tell
them about the pros and cons of the product, & also tell how it is now time for change and with
development it is time for every individual to switch to Tpads, which would :

Saves paper (we don’t have to cut trees and make the environment worse and too at
the time of Global Warming when all of should take this fact under consideration of
saving trees)

Prepare the students well ahead during their learning stage to get exposed to Pad which
later on they may use for job and other dealings(as with the launch and rapid growth of
technology people are shifting to ipad which is going to replace the computer soon.)

it is here to replace books, the huge amount of weight the people carry when they want
to read.

its Unique selling preposition – converting the text to speech is specially designed for
the readers who are on-the-go, in their busy life people might not find time to read they
may just plug into Tpad and can listen to it while travelling, working etc. it gives an extra
edge to our product, it will be popular among students as well, who cannot sit for long
hours and read which is boring can learn their lessons by simply listening to them.
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7. 7

Ease of Use

Easy to carry

Store multiple books in one pad

Low priced product

Two years Guarantee

First bulk Delivery within two months of Order(then it will be readily available)
Production : It will be On order delivery , produced and manufactured in China where will have all
the rights of intellectual property.
Distribution : Supply chain management is very transparent at the initial stage, we get orders from
the buyer- we order our manufacturing company in china to produce those many pieces of our
product, we ship from china and deliver it to our clients.
It is a unique product which would be available to general public through either the retail book
stores, or to students from their schools, we may take orders online as well ,’however to begin
with we are looking at market of Geneva in prime but would be open for other cities and
countries once we have the proper exposure.
Organisation Structure:
I have mentioned in the text above that we will start small and avoid any extra cost, the
organisational structure remain very small until we grow from our roots.
We begin small, we would have three people in our Organization that would include :
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8. 8
CEO
Sponsor
Director
(i)
Marketing
Manager
Sales &
Operations
We look to expand the staff once we receive bulk order , and it is subject to our requirement.
Development Plan
Business Strategy and development plan of ‘Tpad’ is the oldest one ‘ the bait & hook business model ‘
we will sell the products for a very minimum price with few applications and then by every semester
passes by will be introducing new and advanced applications and will charge for the upgrade.
The bait and hook business model (also referred to as the razor and blades business model or the
tied products model) was introduced in the early 20th century. This involves offering a basic
product at a very low cost, often at a loss (the "bait"), then charging excessive amounts for refills or
associated products or services (the "hook"). Examples include: razor (bait) and blades (hook); cell
phones (bait) and air time (hook); computer printers (bait) and ink cartridge refills (hook); and
cameras (bait) and prints (hook). An interesting variant of this model is a software developer that
submitted by Tunoy Mukherjee, Geneva Business School, May 2012-05-16

9. 9
gives away its word processor reader for free but charges several hundred dollars for its word
processor writer.
Market really Exists : the proof that market really exists is that colleges and schools giving away
photocopied spiral books and passing photo copied handouts from the reference books buying just one
copy of the book. teachers and profs passing handouts whereas with Tpad life becomes much easier.
This is directly linked with the company strategy, sell the initial product for less price and once we
manipulate the market and have sold our patent products to everyone we start earning on the upgrades
of various application.
The First Upgrade : by the end of one year and beginning second year will be introduction of a inbuilt
dictionary.
Year Two – Up Gradation
IN- BUILT – DICTIONARY- it is simple the way people would highlight text to listen to it, if they do not
understand a particular word simply highlight the word and press the dictionary button it will give the
meaning along with it they may be able to listen to the pronunciation of the word. which would come
handy if they are not the native speaker of the language.
Year Three – Up Gradation
Language – Translator- it will work in a conventional way you highlight a text and choose a language and
it will translate it into that particular language, to begin with it will be available in French, German &
Italian the three official languages of Switzerland.
submitted by Tunoy Mukherjee, Geneva Business School, May 2012-05-16

10. 10
Financial plan
Financial plan for this project is extremely transparent
First Year- Launch of the Product
Start Up Cost
Heads
Cost CHF
Research & Development
5000
Business Registration
5000
Domain name Registration
2000
Solicitor’s fee
5000
Sundries
5000
Total
22000
Profit & Loss Account Forecast Year One
Employees apart from Sponsor

Director (Monthly Wage) = CHF 4000/-

Marketing Manager (Monthly Wage) = CHF 2000/-
Cost of one Tpad :

Manufacturing and Shipping Cost = CHF 60/-

Selling Cost = CHF 80/-

We receive a order in the month of August for 1500 Tpads

Total Manufacturing Cost and Shipping = CHF 90000/-
submitted by Tunoy Mukherjee, Geneva Business School, May 2012-05-16

11. 11

Discount (as it is a bulk order ) = CHF 10000/-

Our Selling Cost 1500 * 80 = CHF 120000 + 10000

Total Income = CHF 130000/-

Another order in December for 2000 Tpads

CP per Tpad @50 = 2000*50 = 100000

SP @80 = 2000*80 = 160000
Year 2012-13
Income & Expenses
Total
Months
Income (Sales)
Expenses
Marketing EX
Wages
June
-
-
1000
6000
-7000
1000
6000
-7000
6000
44000
July
August
130000
80000
September
1000
6000
-7000
October
1000
6000
-7000
November
6000
-6000
December
6000
-6000
6000
54000
January
160000
100000
February
1000
6000
-7000
March
1000
6000
-7000
April
1000
6000
-7000
May
1000
6000
-7000
-8000
-72000
30000
Year End
Total Profit
290000
-180000
290000 – 180000 – 8000 – 72000- = 30000
Total profit at the end of the year = CHF 30000/-
submitted by Tunoy Mukherjee, Geneva Business School, May 2012-05-16

12. 12
Considering the Setting up Cost We have profit of CHF 8000/- The First Year
Setting Up Cost
22000
Year End Profit
30000
Tax
2000
Profit After Tax
6000
Starting Second year

Up gradation with inbuilt dictionary in Last Year sold 3500 tpad @ CHF 50/- =175000/-(june)

Softawre for inbuilt dictionary installed lump sum @10000/- (Cost Price)

Sold 2000 more Tpad with up gradation

SP = 50+80 *2000 = CHF 260000/- December

CP = CHF 100000/-

Hired a IT guy for up gradation & Marketing Compensation CHF 3000 per month
Year 2013-14
Income & Expenses
Total
Months
Income (Sales)
Expenses
Marketing EX
Wages
June
1750000
10000
1000
9000
155000
July
1000
9000
-10000
August
1000
9000
-10000
September
1000
9000
-10000
October
1000
9000
-10000
submitted by Tunoy Mukherjee, Geneva Business School, May 2012-05-16

13. 13
November
1000
9000
-10000
1000
9000
150000
January
1000
9000
-10000
February
1000
9000
-10000
March
1000
9000
-10000
April
1000
9000
-10000
May
1000
9000
-10000
-12000
-108000
205000
December
Year End
Total Profit
260000
100000
435000
-110000
435000 – 110000 – 12000 – 108000 = 205000/-
Total profit at the end of the year = CHF 205000/-
Starting Third Year

Up gradation of 5500 tpads @ 50 = CHF 275000/-

Buying this Translator software for lump sum CHF 25000/-

Hired an office assistant for calling and fixing appointment and keep track of accounts @ 3000/
per month

Received order from Zurich of 4000 Tpad with up gradation

CP @ 50 *4000 = CHF 200000

SP @ 80+50+50*4000 = CHF 720000

Hired another IT guy @ 3000/ per month

Raised salary of Marketing Manager to 3000/-
submitted by Tunoy Mukherjee, Geneva Business School, May 2012-05-16

14. 14
Year 2014-15
Income & Expenses
Total
Months
Income (Sales)
Expenses
Marketing EX
Wages
June
275000
25000
2000
13000
235000
July
2000
13000
-15000
August
2000
13000
-15000
September
2000
13000
-15000
October
2000
13000
-15000
November
2000
13000
-15000
2000
13000
505000
January
2000
13000
-15000
February
2000
13000
-15000
March
2000
13000
-15000
April
2000
13000
-15000
May
2000
13000
-15000
-24000
-156000
590000
December
Year End
720000
200000
995000
-225000
Total Profit
995000 – 225000 – 24000 – 156000 = 590000
Total profit at the end of the year = CHF 590000/-
Balance Sheet
Assets
Amount
Liabilities
Amount
Capital
22000
Cash
-
Account Payable
180000
Petty Cash
-
Marketing Expenditure
8000
submitted by Tunoy Mukherjee, Geneva Business School, May 2012-05-16

15. 15
Accounts Receivable
290000
Taxes Payable
Income Tax 1000
2000
Sales Tax 1000
Payroll Accrual
Profit 290000 - 284000
Total
6000
Total
290000
72000
290000
Break even Analysis
Debit
Average Selling price / unit
Credit
80
Average Cost price/unit
60
Gross Profit Margin/unit
20
Fixed Cost
-
CHF break Even
No. of unit sales to break even
1100 units *80 = 88000/66000=22000
submitted by Tunoy Mukherjee, Geneva Business School, May 2012-05-16
22000

16. 16
Conclusion
The Product will have its own unique market segment which will further expand in future, ‘ Tpad ’ is
here to stay and reach great heights, with its low pricing , light weight and unique features it will entice
more and more customers towards it, it will bring about a change in all of reading fraternity it will be an
evolution in the Hi-tech market with very less innovation but dedicated towards a unique process.
submitted by Tunoy Mukherjee, Geneva Business School, May 2012-05-16