Marketing business plan for Hand Made Gifts Business Plan Hand Made Gift Marketing

1. MARKETING BUSINESS
PLAN FOR
HAND MADE GIFTS
PRESENTED BY:-
Aditya Jhunjhunwala (17001)
Ankita Chakraborty (17004)
Harsh Bansal (17008)
Nikki Kumari (17011)
Twinkle Saharia (17025)

3. KNOW THE COMPANY…
 Name of the company - “SMILES FOR MILES”
 Type of the company - Partnership Firm of Five
 Type of business - Handmade Gifts Business
 Vision - To become the creative house of first choice in our chosen areas by
building beneficial and lasting relationship with customer through a
process of continuous improvement.
 Mission - To convert the creativity into reality in hand!
 Objective – Commitment of Well Being | Commitment to Time management
System | Unbelievable Customer services | Innovation
 Address – Kolkata | Other locations via E-commerce

5. INTRODUCTION
 Every person is in search of attractive and innovative products for purpose of exchanging
gifts.
 The idea of “Smiles for miles” is to establish an outlet that makes available a variety of
handmade items under one roof and to provide a platform that will facilitate both talented
house girls and customers.
 By offering a variety of handmade products to customers having demand for them we will
enable these homemade girls to earn being at home.
 At Smiles for miles people will like to purchase handmade items as gift because when we
make an handmade item, a little part of the creator of that piece goes into it as artists put their
ideas, personality, style, and often blood, sweat, and tears into their work which makes that
work unique.

6. BUSINESS DESCRIPTION
 Idea of “Smiles for Miles” is to provide a large variety of innovative and creative handmade
items under one roof.
 The name of our organization is “Smiles for Miles” which is actually an effort to provide
exceptional items for special celebrations and occasions.
 It is basically a manufacturing as well as merchandising business in which we are going to
present a wide assortment of handmade items.
 Creative ideas are used to turn a rubbish and useless stuff into innovative design. There is no
such business prevailing in our target market.
 This is the point of uniqueness in the particular geographical area in which our business lies.

7. PRODUCTS
A variety of hands made items are provided under one roof which include:
 Handmade Cards
Handmade greeting cards in a variety of styles and sizes are offered for special occasions. Unique
ideas are used to embellish the cards for making special movements more special.
 Wedding Boxes
Gorgeous Boxes of different sizes to carry different things that are usually used in wedding
ceremonies as gifts are offered by us. Our unique wedding gift boxes will surely do the job of
impressing customers while reflecting their unique style.
 Handmade Shopping Bags
Our talented and creative team members have poured their heart out to create the exotic
collection of handmade shopping bags. All these handmade paper bags are flawlessly designed
with beautiful papers and meet the demands of diverse clients.
 Handmade Candles
Decorative candles are uniquely versatile decor items that add a new look and spark to our home
and our special events as well. Beautiful candles with innovative designs are splendid offer by us.

8.  Handmade Decoration Pieces
Different decoration pieces ornamented with beautiful work of handmade dough flowers to
decorate the houses and even for offices, are also included in our offerings.
 Handmade Jewellery
Flashy & filled with stylish & elegance designs, different items of jewellery are offered. Rings,
ear rings, bangles and necklaces are included in offered jewellery item by our company.

11. OUR MAIN OBJECTIVE
Main objective of Smile For Miles is to glorify the different occasions of our customers by
providing exclusive and quality products.
 Commitment To Well-Being
 Commitment To The Team Objective
 Commitment To Goal Attainment
 Commitment To Our Time Management System
 Commitment To Excellence In All We Do
 Commitment To Incredible, Outstanding, Unbelievable customer Service
 Commitment To Value-Added Service
 Commitment To Innovation

12. STRATEGIC GOALS
Through strong commitment and efficient strategic goals, “SMILES FOR MILES” will be first
choice of customers and be recognized as a business leader. We feel very confident that the goals
can be reached. These Strategic goals include following:
 Customer satisfaction
 Building strong customer relationships
 Making contracts with different stakeholders (Suppliers)
 Maximize the switch over Cost
 Capturing Maximum Market Share
Plans To Achieve Those Goals
The very first result that a customer wants is that, satisfaction and delighted from the product.
Customer will only visit for second time, if he was satisfied fully the first time. By providing
innovative and quality products Smiles for Miles can build strong relationships with customers.
Our main focus is to maximize the switch over cost of the customer. By issuing annual, semi-
annual and quarterly discount offers we will bind the customer to carry with us.

13. STP
SEGMENTATION
SMILES FOR MILES target segment are all the people of INDIA, who love creativity, which
includes upper, middle and lower middle class. Along with this Creative has segmented its target
segment into the following category:
• Geographical Segmentation
• Psychological Segmentation
TARGET MARKETS
Smiles for Miles has two distinct groups of customers, individuals and corporate customers:
• Individuals
• Corporate
POSITIONING
• Each customer evaluates products in the market according to their mental map of the market
as we are reaching to the happiness of the customers the product comes to their mind easily
when it comes to smile.
• Positioning exists in customers’ minds, not in positioning statements so being in the mind of
the customer for everlasting unique product will make them and their moment more special
and will create a long term relationship for us

14. INDUSTRY ANALYSIS
 The economic position of the country as well as the people allows this industry to flourish and
grow. A quick view on main glimpse on economic position.
 Despite of presence of different manufacturers that provide a large variety of readymade item,
demand for handmade items is substantial.
 Although the handmade items industry is spread in all over the country, it is mostly operated
in local environment
 Due to advancement in technology and rapid adoptability of internet, this industry is being
promoted online.
 Although there are many players in the market offering same products but no one is offering
the same things in terms of handmade creative ideas.
 As there is no such business already existing in market so there is no direct competitor.

15. PORTER’S FIVE FORCES MODEL
COMPETITIVE FORCES THREAT TO INDUSTRY PROFITABILITY
LOW MEDIUM HIGH
THREATS OF NEW ENTRANTS 
BARGAINING POWER OF BUYER 
BARGAINIG POWER OF SUPPLIER 
RIVILARY AMONG COMPETITORS 
THREATS OF SUBSTITUES 

16.  Threat Of New Entrant (HIGH)
Threat of new entrants for Creative is high. This is because trend for use of handmade items is
evergreen. Start up cost is also low which shows that there are low entry barriers. This attracts the
new entrants to get enter into this business.
 Rivalry Among Competitors (LOW)
Rivalry among competitors is low for Creative as there are a few competitors in whole industry.
 Substitutability (HIGH)
Threat of substitute for Creative is very high. There are a lot of substitutes available in market for
products.
 Bargaining power of Buyer (HIGH)
Bargaining power of the buyer with Creative is high because of the availability of so many
substitutes in the market.
 Bargaining Power Of The Supplier (LOW)
Bargaining power of the supplier is low. Because of availability of large number of suppliers in
the market

17. ORGANIZATIONAL PLAN
Form of Business: SMILES FOR MILES is a partnership business in which 5 partners are
contributing towards capital and sharing the proceeds of business. It has been established on
base of Partnership act, 1932.
Members: We are five main members of the partnership firm who shares equally in the capital
and profit. These members include:
Authorities and Responsibilities: The current team, composed of five members
• Aditya Jhunjhunwala (Finance manager)
• Ankita Chakraborty (Marketing Manager)
• Harsh Bansal (Supply-chain Manager)
• Nikki Tiwari (Production Manager)
• Twinkle Saharia (Operational Manager)
Names Capital Invested
Aditya Jhunjhunwala 1.25 lac
Ankita Chakraborty 1.25lac
Harsh Bansal 1.25lac
Nikki Kumari 1.25 lac
Twinkle Saharia 1.25 lac

18. PRODUCTION PLAN
MANUFACTURING
Our products will be manufactured in our production outlet. All of girls will work directly under
authority of operational manger. Creative ideas for innovative products will be explored through
brain storming sessions. Production process of Creative involves following steps:
 Purchase of material and accessories
For making cards and shopping bag, chart paper is essential thing. Satin ribbons, shimmering
bows, Laces, glue and other material will also be needed to make glorious products. Including all
these, other necessary accessories will be purchased from our regular suppliers in bulk so that
cost minimization can be made.
 Production Process
Cards of inspiring designs, gift boxed of various sizes and unique wedding boxes will be made
through handwork and using appropriate stuff.
 Packing
Different gift and jewellery items will be made available in striking packing. SMILES FOR MILES
monogram will be printed on each item’s packing going to be sold at outlet.

19. MARKETING PLAN
• The most important plan for a new starting venture is a marketing plan because without the
marketing plan, a business can never exist.
• Smiles for Miles is going to make its customers aware through efficient marketing plan that
we value our customer at each and every point.
• Smiles For Miles marketing efforts focus on making its customers realize that:
 We are offering variety of imaginative hand-made articles that can embellish their
special movements
 Our ideas are creative and innovative that is what others are lacking.
 We are going to establish a new trend in that society by giving variety of handmade
ingenious items under one roof.

20. PRICING PLAN
 Customer’s decision to purchase a product is greatly influenced by Price tag placed on it.
 Our handmade products are more expensive than those from a factory assembly line.
In pricing plan, we may focus in the following strategies:
Product Bundle Pricing - We will combine several products that have left behind in stock in the
one package and will offer them on reduced rates so that potential loss of unsold inventory can be
avoided.
Market Skimming Strategy - Skimming strategy in which it is offering high quality and
creative products on slightly increased prices than prices factory assembly line products.
Name of items Price Mark Up
Greeting cards 100-150 35%
Wedding Boxes 200-250 35%
Gift Boxes 150-200 35%
Candles 350-400 35%
Decoration pieces 500-2000 35%
Jewellery 500-1000 35%
Shopping bags 100-150 35%

21. DISTRIBUTION AND PLACE PLAN
We have planned to acquire a Shop on rent in Vardaan Market, AC Market, Emami Mall. It is
situated at centre of city. The main reason behind selecting this location is this, it is growing area
for all branded shops and it is now one of the best shopping place in Kolkata.
The online ecommerce like Amazon, Ebay, Shopclues, Homeshop18, Peppertry will be
collaborated later for more sales volumes.
DIRECT SELLING
ONLINE SELLING
Suppliers Smiles for Miles End consumers
Online Orders Shipment End consumers Online Receipt

22. PROMOTION PLAN
Various Strategy will involve promoting heavily to potential customers which will create a
demand for our unique product that will help in pulling the products through the distribution
channels.
Following promotional tools will be used to build Brand image of creative in mind of customers:
 Brochure
 Hoardings
 Press Advertisement:
 Internet marketing
 Exhibition
 Transport advertising
 Broadcast Advertisement

23. FINANCIAL PLAN
SMILES FOR MILES being a new business needs a high capital investment to recover
its expenses like advertisements, salaries along with the cost of production. Thus we are
investing Rs. 625,000 as its initial capital investment.
We are five active partners, who are fulfilling the whole capital requirements to meet its
startup cost. Capital Structure of Creative includes only Equity. No debt is included to
raise funds because it has an extra burden of expenses as interest, which results in
lower profits.
Names Capital Invested
Aditya Jhunjhunwala 1.25 lac
Ankita Chakraborty 1.25lac
Harsh Bansal 1.25lac
Nikki Kumari 1.25 lac
Twinkle Saharia 1.25 lac

24. BUDGET FORCAST
AND
SALES FORECAST PLAN
BUDGET FOR PRODUCTION OF UNITS:
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Total
Sales
(Estimated)
100 130 140 145 145 155 160 165 175 185 190 200 1890
+Ending
Inventory
10 20 25 20 15 25 25 30 35 40 40 45 -
Units Available
For Sale
110 150 165 165 160 180 185 195 210 225 230 245 -
-Opening
Inventory
0 10 20 25 20 15 25 25 30 35 40 40 -
Units To Be
Produced
110 140 145 140 140 165 160 170 180 190 190 205 1935

25. ESTIMATED PRODUCTION COST
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Total
Material 2310 2940 3045 2940 2940 3465 3360 3570 3780 3990 3990 4305 40635
Laces 2640 3360 3480 3360 3360 3960 3840 4080 4320 4560 4560 4920 46440
FOH 5000 6000 6500 6000 6000 7000 6500 7000 7000 7500 7500 8000 80000
Total 9950 12300 13025 12300 12300 14425 13700 14650 15100 16050 16050 17225 167075
Per Unit Cost
= Cost of units produced / Number of units
produced
= 167075 / 1935
= 86.34
Material – 23.10 to 21.52 | Laces – 26.40 to 24.60 | FOH – 50 to 80

26. JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Total
Rent 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000 240000
Salaries 11500 11500 11500 11500 11500 11500 11500 11500 11500 11500 11500 11500 138000
Dep 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 60000
Advert 3000 5000 6000 4500 4500 5500 5000 5500 5500 6000 5000 4500 60000
Courier 500 1500 2000 1000 1000 1000 1500 2000 1500 2000 2000 2000 18000
Total 40000 43000 44500 42000 42000 43000 43000 44000 43500 44500 43500 43000 516000
ESTIMATED OPERATING COST
Sales Rs 756000*
-CGS 163189
Gross profit 592810
Less Operating Expenses:
Rent 240000
Salaries 138000
Depreciation 60000
Advertisement 60000
Courier expenses 18000
Gross Profit 76810
PRO-FORMA INCOME STATEMENT
Sales = 1890 * 400 (Estm)
Sales = Avg Sales * Avg Pric

27. SWOT ANALYSIS
STRENGTHS
 Huge Profit Margin
 First mover advantage to provide handmade unique item in targeted market
 Not necessary to rely on banks for startup finance
 Provides discount for the regular customer.
 Waste recourses are utilized in the best way.
 On line handmade item purchasing facilities.
WEAKNESSES
 Low profits in the early stages of the business.
 Lack of awareness among public regarding the business.
 Uncertainty about the business success.
OPPORTUNITIES
 Level of the demand of cultural items is increasing day by day.
 Drive away of Consumers from lavish items toward more personalized gifts.
 No Direct Competitor
 Easy availability suppliers providing innovative products
THREATS
 Possibility of new entrants in the market due to low entry barriers.
 Rapid use of readymade gift items in the society.

28. THANK YOU