BUSINESS PLAN MASHHAL HANDICRAFTS PAKISTAN

Mashhal handicrafts Pakistan 12 Meena Bazar,Liberty Market Gulberg,Lahore Phone: +92 42 36677110 Email: mashhalhandicraftspk@gmail.com

Prologue
Mashhal Handicrafts has a mission to provide a sense of belongingness to personal aesthetics by providing the premier products of true craftsmanship .With a strict adherence to this maxim, success will be ensured; Our products will exceed the expectation of the customers.

Premier Craftsmanship We will change your view of beauty

TABLE OF CONTENTS 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Exec Summary General Description Goals & Objectives Product Market Legal From of Ownership Product & Services Marketing Plan Major Players Economics Product Operational Plan Management & Organization 23 25 20 22 7 9 11 12 14 17 19 2

EXECUTIVE SUMMARY Mashhal Handicrafts is a startup organization, the products in which Mashhal is dealing are handicrafts. Mashhal is developing its network of supplies of handicrafts from the different parts of the country .In conjunction with the local handicrafts manufacturers Mashhal is dealing in the Textile handicrafts, Clay, Metal and Jewellery, Hand knitted carpets ,Stone Crafts, Glass, Ceramic and Onyx, Camel and Snake skin products, Pottery, Costume dolls, Shell and bone products and woodwork. In contrary to that we are developing a market plan for our organization to export our products to various regions in collaboration of different NGOs. The market of handicrafts is on boom and Pakistan share is very less existent in world markets. To fill that gap we are concentrating on the premier hand made handicrafts, to compete with the local competitors in Pakistan along with the big players in the market like China. The Competition is fierce due to bulk of cheap machine made goods by the competitors; the focus of crafts would be on pure craftsmanship and value addition to the consumers. We will sell initially through the local distribution network which includes, wholesalers, importers, under the contract terms. Mashhal Handicrafts is the newly born organization which deals in the Textile handicrafts, Clay, Metal and Jewellery, Hand knitted carpets ,Stone Crafts, Glass, Ceramic and Onyx, Camel and Snake skin products, Pottery, Costume dolls, Shell and bone products and woodwork. The purpose of building such an organization is due to the fact that the handicrafts market has been largely ignored by the Pakistani traders. Our target market is not restricted to Pakistan only, the products under the Mashhal Handicrafts Signature would be totally customized to serve the whole likings and standards. This would provide Mashhal Handicrafts with an extra ordinary opportunity for market growth as handicrafts and decorative industry is on boom in the world. The company has developed its market plan which is as under. The farther need of exporting handicrafts in various markets arises by observing the worldwide trend of handicrafts markets and the share of Pakistani handicrafts in the world markets. As per a report from Federal Bureau of Statistics, handicrafts exports dropped 78 percent in the first half of the 2006.Pakistani handicrafts are losing share in global markets. Export of handicrafts between July and December 2005-2006 stood

at Rs334million, which has been reduced to Rs74 million in first half of 2006-2007. World markets are flooded with artificial machine-made handicrafts instead of handmade ones. Far East markets have been conquered by cheap Chinese goods, while Italy is dominating the European markets owing to lesser prices. The Export of Pakistani handicrafts is less to European markets. The Asian manufacturing industry is highly diversified, comprising of several establishments engaged in manufacturing of pottery, ceramics, clay pieces, paintings, sculptures, metal craft, antique furniture, antique jewelry, gems and stones, textiles, paper craft, toys, leather based products. These industries provide additional employment opportunities to masses in a respectable manner with handsome cash rewards.

GENERAL COMPANY DESCRIPTION MASHHAL HANDICRAFTS The mission is to establish Mashhal Handicrafts to support the novel cause of Internally Displaced People (IDPs) in Pakistan while adopting successful business strategy. A handicraft is one of the key export segments of Pakistans trade with significant contributions coming from various areas. However, the handicrafts sector is faced with several problems such as unorganised marketing and inadequate market information; inadequate support mechanism for product development; power interruptions and other infrastructural deficiencies; inadequacy of raw material at appropriate prices; lack of mechanism for dispersal of technology for enhancing productivity; final finishing and lack of investment for fulfilling international requirements and a general poor image of the country as a supplier of quality goods with consistency. The term handicrafts encompasses a wide range of artifacts. The informal sector, which includes handicrafts, has been described by the International Labour Organization (ILO) as a part of economic activity characterised by certain features like reliance on local available resources and skills, family ownership, small scale operations, labour intensity, traditional technology, skills generally acquired outside the formal school system, unregulated and competitive markets. The programme objects the requirement of establishment of a handicrafts shop, made by the IDPs, initially at Lahore and then various outlets at the predestinated locations to serve this noble cause in Pakistan in a befitting manner. The goal is not only focused to display of the articles made by the IDPs but also provide the insight on the matter itself in a detailed manner .The aim however clarifies that it has to generate funds as well as awareness among the masses through different activities and displays. The programme primarily consists on setting up of state of the art handicraft shop equally equipped with items made by IDPs of different geographical locations in a delicate manner. The Mashhal Handicrafts has fully qualified team to run this shop in a prestigious manner in the days to come. The initial amount involved in the programme would be estimated Rs. 2.5 Million. The program progress and success will be evaluated regularly on monthly and quarterly basis through process of audit and quality checks in details. GOALS & OBJECTIVES

The goal to start up this business is to enable people at risk and their families to earn handful amount by learning handicraft skills and selling their products domestically and internationally through aggressive marketing. The main objectives include: Providing a measurable increase in financial status of the IDPs at remote locations. Enabling health and educational facilities at their places with quality and dignity. Providing a platform from where such folk can generate and raise their voice to the whole society and world. Helping the societies and governments in bridging the gap between IDPs and developing a problem resolving mechanism. PRODUCT MARKET Mashhal Handicrafts possess a research on handicrafts and decorative market in Pakistan. In the changing world scenario, craft products exported to various countries form a part of lifestyle products in international market. The impact is due to the changing consumer taste and trends. In view of this it is a high time that the Pakistani handicraft industry should go into the details of changing designs, patterns, product development, requisite change in production facilities for a variety of materials, production techniques, related expertise to achieve a leadership position in the fast growing competitiveness with other countries. The rural craft persons of Pakistan who are the backbone of Pakistani Handicraft Industry has God gifted with inherent skill, technique, traditional craftsmanship but that is quite sufficient for primary platform. However, in changing world market these craft persons need an institutional support, at their places the craftsmen use different media to express their originality. The diversity of the handicrafts is expressed on textiles, metals precious and semi-precious, wood, precious and semi-precious stones, ceramics and glass.

TARGET MARKETS House hold formation (New Home Builders) Occasional (Christmas, Birthday, Marriages, Thanks giving) Professional Men (Men in age range of 25 -50) Professional Women (Women in age range of 35 and 50) Baby Boomers (People with age 55 and above) The target customer for the proposed project would be the Men, Women and children of upper middle class and upper class. Handicrafts are one of the key export segments of Pakistani trade with significant contributions coming from rural & remote areas. However, the handicrafts sector of such areas is faced with several problems such as unorganised marketing and inadequate marketing formation; inadequate support mechanism for product development; power interruptions and other infrastructural deficiencies; inadequacy of raw material at appropriate prices; lack of mechanism for dispersal of technology for enhancing productivity; final finishing and lack of investment for fulfilling international requirements and a general poor image of the country as a supplier of quality goods with consistency. The handicrafts industry has been growing since 80s. There has been a continuous increase in both production and purchase of Handicrafts in Pakistan as well abroad till the year 1999. During the year 2000, a nominal growth of 0.2% and 0.6% has been recorded in the production and purchase of handicrafts respectively. The most important factor for the success of a business project is quality of product provided to the customer. Customer satisfaction will be the key success factor. Retail store is full of opportunities for success, but that success is reserved for those who are prepared to commit themselves to everlasting change. There should be regular and sustained marketing through fliers distribution and Cable &TV. To obtain a good average of profits it is necessary to provide state of art facilities to customers. Frequent discount policies used to enhance customer motivation. The staff hired should be well mannered and well trained in dealing with the customers.

LEGAL FORM OF OWNERSHIP The Company is owned and run by a non profit organization namely Saviours Social Organisation Pakistan(SSO) and its liability is limited, due to its inceptive idea of business and growth in this particular industry. It is also advised that a sole proprietorship/partnership is much better if such businesses started at own because it requires less legal requirement to start with than a company. Also the small and medium stores in existing industry are sole proprietorships or partnerships. Similarly a lower income tax rate of tax is applicable to sole proprietorship than that of companies PRODUCTS AND SERVICES In the range of products it comes from embroidery, stone & wood products, Handknotted Carpets, Woven and Other Carpets and metal ware. These products focus on the ultimate consumer. The ingenuity of the designer as well as the craftsman will enable traditional crafts to be viable in a contemporary market. A strategy needs to be pursued to harness the culture-market, where the craft in its original beauty can still sell and fetch high prices. Even in the case of utilitarian craft market, innovative designs can ensure preservation of the traditional beauty of crafts. This would help retain the product uniqueness, and as pointed out earlier, handicrafts business constitutes concept selling rather than mere product selling. Design and development of products constitute the soul and substance for the sector. MARKETING PLAN Mashhal Handicrafts in view of the wide range of products that could be considered as giftware and handicrafts, it is difficult to name standards. Compliance with EU standards and regulations is strongly suggested. There are, however, only few product groups in the giftware and handicrafts field that has to follow standards. It is essential that CE-labeling be observed where required. The CE-mark (including conformity statement and technical documentation).While the quality regulations for candles are obligatory assuring a certain level of quality, the toy regulation and the electronic standards have to be observed because of safety considerations: To ensure these we are seeking forward to the following benefits that are important for our customers.

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The world trade in handicrafts is not basically a trade in culture but a trade in common peoples needs and tastes. The items which have to be produced in bulk and, although, made by hand, need mechanical support for processing and finishing. These items sometimes are required to be made in shapes, colours and designs, which are not typical of traditional shapes, colours, and designs of the exporting country. Developing countries, which have captured the world market, are those that have adopted their workmanship and technology to this requirement. As a rule, Pakistani artifactsornamental, decorative or collectableare handicraft. On the other hand, an over whelming segment of hand-crafted, partly hand-crafted as well as machinecrafted goods pass in global market with a generic nomenclature of gifts and decorative. Additionally, there is a market for cultural crafts as well, though limited. This segment of the market needs to be explored and exploited for larger gains, among other things, to help improve Pakistans general image as well. No doubt, a blind pursuit of export market has also its dangers: loss of skill, besides slow and imperceptible mechanization may finally endanger the craft and take away the unique quality of the craft. Paper marketing is essential for attracting clients towards newly established business. Once a reasonable clientele is established the stress on marketing can be decreased, as it will be automatically done through word on mouth. In Pakistan, the giftware and handicrafts are distributed through seven major channels. Wholesalers Importers/distributors Commission agents/sales representatives Department stores Mail-order Internet sales Tele-shopping

MAJOR PLAYERS HANDICRAFT OUTLETS Key Players Area of operations

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Universal Creation, Karachi Al Hassan Group of Companies, Karachi KAAF Enterprises, Lahore Mark House, Lahore

National International National International

The substantial supply of giftware and handicrafts has transformed the Pakistani giftware and handicrafts market into a fiercely price-competitive market place. Nevertheless, innovative and new to market giftware and handicrafts items place still have good market prospects. It is essential for the Pakistani giftware and handicrafts marketers to find new products to stay competitive. Although Pakistani consumers may be willing to pay a high price for exclusive items they are very price conscious and want value for money. Among traditional gift items, candles, festive items, including Christmas decoration, exclusive gift boxes and gift-wrap, ribbons, nostalgic calendars and all types of scented items have best prospects. The Pakistani market shows a strong demand for low-priced candles.Thusimports from Poland and China have increased substantially. The average growth for the overall giftware and handicrafts is estimated at 1-2 percent over the years. Seasonality plays a major role in the buying patterns of gifts and decorative articles, as a trend approximately two thirds of decorative articles are sold in the second half of the year. This has much to do with the fact that people spend more time within their homes in this period. Christmas and New Year are also important sales drivers. The peak periods for the sales of gifts generally revolve around special occasions, such as Christmas and New Year, Valentines Day, Easter, Mothers Day and Fathers Day. Different consumers are generally not very familiar with the different brands of gifts and decorative articles, as can be derived from the high market share for private label products. Most consumers do not believe that famous brands automatically mean better quality. Brand awareness, however, differs per product group. In the Ceramic ware, and Glassware sectors, brand awareness is generally higher than in the other segments, mainly due to the marketing efforts of the manufacturers in these sectors. There is little data or information available in respect of the competition in different product sectors relevant to Pakistan and about the size of the market. The demand pattern in international markets constantly evolves towards quality goods in bulk quantities. The supply factor poses a serious problem. Competing countries like Taiwan, China,

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Thailand, Malaysia, Indonesia and the Philippines have moved ahead in this regard. Major marketing is done through advertisement. This includes giving advertisement in newspapers and magazines. An effective marketing campaign plays a vital role in the success of business. For a newly established outlet it is imperative to face a competitive environment in the market as competition enhances a ability to strive for continuous improvement. A concerted plan of action may be drawn up to develop: Craft tourism for domestic development of crafts by encouraging the establishment of craft villages, and organised tour packages to craft centres and museums; Craft markets at various points of entry into the country; and Display outlets for crafts, using artisan products in hotels and other establishments. An intensified awareness of cultural as well as tourism crafts in the region will help, promote new employment opportunities, and broadly engender an enthusiasm and pride, especially among the young, in local craftsmanship. Tourists are major consumers of craft goods. Foreign tourists should be able to have an easy access to non-exploitative avenues to source their purchases. There are several untapped international market channels, e.g., museum, boutiques and other niche markets. There are proposals for organising programmes at various established fairs & exhibitions, which attract tourist and public at large. In addition, certain special festivals are proposed to be organised at various localities. A concerted campaign, if launched to promote a handmade in Pakistan brand image based on certification and information on the product, will help. In selected cases, special features of both, the craft and the craft person can be explained, which will

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help generate interest in the product and consequently earn a higher unit value as well. The information can include that on the tradition, technique, design and the artist behind the crafts. Certification could also add that the product conforms to international safety as well as environmental standards. An innovative range can be prepared for children to be a perfect study-time companion for them. Children may be encouraged to visit special workshops and stores, in fact, to take home some material like which they can paint. The artwork, which they so produce, can later be displayed at vantage locations. This will generate interest among them; they will find expression to their child-like fantasies through different medium. ECONOMICS The development of handicrafts in the country has been increasingly export driven. Pakistans principal export sectors are indicated earlier. Although the share of handicrafts and hand-knotted carpets is just about 2.5per cent of overall exports from the country, these sectors account for very high employment potential, perhaps the highest among all product sectors, and also value-added component as much as the net foreign exchange earnings. As far as competition is concerned; for a newly established outlet it is imperative to face a competitive environment in the market as competition enhances a ability to strive for continuous improvement. The size of the market for handicrafts in Pakistan in 2005-06 was about $ 79 million, of which exports constituted about 59 per cent. The annual growth of market in real terms (2005-06) aggregated 1.2 per cent (domestic) and 6 per cent (exports). There are certain barriers to entry may be like: High capital costs High production costs High marketing costs Consumer acceptance and brand recognition Training and skills

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Unique technology and patents A comprehensive strategy is being prepared to tackle such like issues in the process of raising and developing Mashhal Handicrafts. PRODUCT In the range of products it comes from embroidery, stone & wood products, Handknotted Carpets, Woven and Other Carpets Gabba, Namda, wicker baskets, copper and engraved vases, papier ,mache, small lacquer tables, wood trays, and embroidered pieces and metal ware. These products focus on the ultimate consumer. There is no time specification for starting such a business because there is no seasonal impact. Product sold not only in summer, winter but also on occasions like Eid, after summer vocation. So, business can be start at any time. TEXTILE BASED HANDICRAFTS Hand printed textiles including block and screen printing, hand printing by pen, tie and die are used in products ranging from bed-covers to sheets, dress material to upholstery and tapestry. The famous embroidered articles of silk and cotton often embellished with mirrors, shells, beads, and metallic pieces. CLAY, METAL AND JEWELLERY Brass, copper, bronze, metal is used for a variety of wares and in a variety of finishes. Scintillating ornaments are available in a wide range of patterns, styles andcompositions.Made from precious metals, base metals, precious and semi-precious stones; these ornaments have traditional as well as modern styles. WOODWORK Wooden articles in Pakistan range from the orient ally carved to the absolutely simple. One can find toys, furniture, decorative articles, etc. bearing the art and individuality of the craftsman. STONE CRAFT The intricately carved stoneware made of marble, alabaster or soapstone GLASS, CERAMIC AND ONYX

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Glass, ceramic and onyx products are a fast upcoming segment in the handicrafts from Pakistan. STRENGTHS Abundant and cheap labor hence can compete on price. Low capital investment and high ratio of value addition. Aesthetic and functional qualities Hand made and hence has few competitors. Variety of products which are unique Exporters willing to handle small orders. Increasing emphasis on product development and design up gradation. WEAKNESSES Inconsistent quality and Inadequate market study and marketing strategy. Lack of adequate infrastructure and communication facilities. Capacity to handle limited orders. Untimely delivery schedule. Unawareness of international standards by many players in the market. OPPORTUNITIES Rising appreciation for handicrafts by consumerism the developed countries. Widespread novelty seeking. Large discretionary income at disposal of consumer from developed countries. Growth in search made by retail chains in major importing countries for suitable products and reliable suppliers. Opportune for agencies to promote marketing activities. Use of e-commerce indirect marketing.

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THREATS o o o Tough Competition. New entrants can easily share the business. Handicraft export is very exacting and competitive and demands high quality. Decline in Pakistan share in international handicrafts markets due to: Better quality products produced by competitors from Europe, South Africa, South Asia, etc. Better terms of trade by competing countries Consistent quality and increasing focus on R&D by competing countries Better packaging and Stricter international standards FEATURES AND BENEFITS Matching products and the product range is critical because a German importer can select a suitable business partner if he/she knows exactly what range we can offer. A precise review of the product range, therefore, aims at identifying the most suitable candidates out of the many potential customers. A product range consists of several product groups (range width), each with several different products (range depth). One product can have several variations. Handicrafts business is consumer product base and relates not to the basic human needs. It is difficult to specify grade/type or model. However, it can be treated as product, which can be made by picking up one from each of the following areas/class. For example a ladies wear can be of wool in a Chaddar form or it may be a silk robe. Artesian can produce mens wallets by using synthetic materials and so on. So, it is very difficult to specify the product by grade, type or model. We can treat it only as a fashion & style oriented consumer product & market. In all countries of the world, the demand for handmade wears is high and in most developing countries it is averagely growing. It is also estimated that about 20% of the worlds total consumption consists of simple daily wear made entirely of different materials. The business is of trading nature and carries larger potential for profit. Unfulfilled demand, change in fashion and good profit margins are few incentives for a new entrants in this business, especially for those who are committed to quality products.

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CUSTOMERS The target customers for the proposed project would be the Men, Women and children of upper middle class and upper class throughout the region as its been already spelled out. Its dual base business in nature as it is to sell to other businesses and directly to consumers. As it is being consumer products, it would be initially sold through one retail shop and later on a channel of distributors, wholesalers, and retailers would be introduced. The most important group is tourists and local & foreign NGOs of all the ages and not basing on gender and locations. COMPETITION As far as range & nature of products are concerned there are different companies to compete at Pakistan like: NICHE The key to marketing strategies is focusing on the delivery of premier hand made articles to the consumers .Crafts International is the organization which would serve the different segments depending upon their category niche for us as we will target the group of people who are actively involved in household formation, newly wed couples who would also be the part of target market, as they are more interested in decorating their homes, Thirdly we would be good option for youngsters in our jewelry category , to fulfill their fashion needs , to serve all these markets we need Universal Creation, Karachi. Al Hassan Group of Companies, Karachi. KAAF Enterprises, Lahore. Mark House, Lahore. Noreena International, Karachi. Ghazali Handicrafts, Lahore. Grey Apple, Lahore.

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to develop a marketing strategy of positioning our products keeping in minds our market objectives we have developed our marketing mix of price ,distribution which is in the report. STRATEGY The key to marketing strategies is focusing on the delivery of premier hand made articles to the consumers .Crafts International is the organization which would serve the different segments depending upon their category. PROMOTION MARKETING MIX Our Marketing mix consist of following categories PRICE The price of our products will be on the per unit basis, it will depend on the category of the product, the type of work, the more precious craft work will be charged higher in comparison to the other products. DISTRIBUTION In Pakistan, the giftware and handicrafts are distributed through seven major channels. Wholesalers Importers/distributors Commission agents/sales representatives Department stores Mail-order Internet sales Tele-shopping We will use these seven channels of our product distribution. WHOLESALERS

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Besides offering wide range of goods to retailers for direct sales, this channel also supplies large quantities of individual articles. They are very particular in maintaining consistency in the kind of products and their quality. One of the distinguishing features of wholesalers is to provide distribution and storage facilities. Specialized wholesalers deal in sales to retailers as well as to final consumers. They maintain high quality standards and but have a narrower and in-depth range of arts and crafts. Importers/distributors most giftware and handicrafts companies use importers/distributors to market and sell their giftware and handicrafts lines. They buy and sell on their own account. Thus, the companies take advantage of the distributor's expertise, his sales force and his existing distribution channels. Distributors call on giftware and handicrafts retailers, purchasing groups and supermarkets. The distributors' mark-up varies depending on the giftware and handicrafts item, but at least 50 percent. Pakistan have more than 45,00 giftware and handicrafts retailers. Several retailers import directly from all over the world and sell to the local customer. Usually these are small companies looking for items new to the market and handling small orders only.

COMMISSION AGENTS Commission agents provide companies with direct access to the various markets and direct control. Independent commercial agents are normally working on a 15 percent commission and operate on a regional basis. They concentrate on specialist retailers, purchasing groups and department stores. Commission agent contracts are based on stringent various regulations. In order to facilitate market entry efforts by the agents their initial commission is often a few percent higher than the "usual" commission. DEPARTMENT STORES We are also interested in establishing business contacts with major department stores. Department stores in particular, prefer to deal directly with manufacturers. Their buyers are very specialized and only handle a limited range of products. At

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some occasions department stores also buy through independent commercial agents. Quite often they have their own buyers as well as a few agents that usually work with them and who know their assortments. PROPOSED LOCATION Location of outlet is of primary concern with any retail organization. Spending time and money wisely in the process of site selection is of primary importance. Keeping in view products offered it is recommended that outlet must be in area like Defence, Gulberg and Fortress stadium etc. The expansion is planned in various big cities with a single branch opened every year.

SALES FORECAST Sales In $ Textile Handicrafts Clay, Metal & Jewelry Wood work Stone craft Glass, Ceramics Camel & Snake Skin Pottery Hand knitted carpets Costume dolls Shell & bone products 2009 6000 8500 12000 4000 3000 4000 2500 7000 3600 2000 2010 7100 9400 15000 4200 3600 5000 3000 8200 4000 2500 2011 8500 10200 16000 4800 4000 5300 3600 8800 4200 2600 2012 11000 13000 17500 5600 5100 6100 4200 9200 4900 3500

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Gross Margin Sales ($) Direct cost of Goods($) Other Costs($) Total Costs of Goods Sold($) Gross Margin($) Gross Margin %

2009 52600 25774 0 25774 26826 51

2010 62200 29856 0 29856 23656 38

2011 68000 35360 0 35360 32640 48

2012 80100 38448 0 38448 41652 52

Now that you have described your products, services, customers, markets, and marketing plans in detail, its time to attach some numbers to your plan. Use a sales forecast spreadsheet to prepare a month-by-month projection. The forecast should be based on your historical sales, the marketing strategies that you have just described, your market research, and industry data, if available. You may want to do two forecasts: a "best guess", which is what you really expect, and a "worst case" low estimate that you are confident you can reach no matter what happens. OPERATIONAL PLAN Handicraft is a product use to add value at any place. This can be categorized on materials, style and usage. The generally used materials are stone, man-made materials, rubber/canvas/synthetic and textile along accessories. Further classification is Mens, Ladies, and children items at display. This can be further subdivided on the basis of style related to fashion. The local industry also caters the special users like foreign tourists, students, local visitors, and foreign delegations. PRODUCTION How and where are your products or services produced?

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Explain your methods of: Production techniques and costs Quality control Customer service Inventory control Product development

LOCATION Big cities are suitable location for such type of outlets. It is assumed in this prefeasibility that a single new outlet will be opened every year in a new city. Location of outlet is of primary concern with any retail organization. Spending time and money wisely in the process of site selection is of primary importance. Keeping in view products offered it is recommended that outlet must be in area like Defence, Gulberg and Fortress stadium etc. The expansion is planned in various big cities with a single branch opened every year. Todays successful retailer is the one making the most profitable use of every square foot of space in the store and in the warehouse. Because space is costly, retailers need to take a strategic approach to its use. Floor patterns, location of merchandise, amounts of merchandise and the appropriate displays are all key factors in determining space. Misuse of space can be as detrimental to success as poor Buying. It is very important for every store to create a suitable atmosphere and appealing presentations in order to trigger the consumers buying decision. In a world where one can find identical merchandise in more than one store, layout and presentation becomes a key-differentiating factor. The proposed store should be air- conditioned. There should be proper arrangement of lightening. USE OF COMPUTERS The computer is an invaluable aid in processing the large number of transactions and vast amounts of information involved in managing a retail operation. The amount of data needed for merchandise planning for example would require hundreds of manhours to produce, whereas a well-designed computer system can perform the task in

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seconds. Software for inventory and sales recording and management should be used to have updated data at all the times. This software not only records each and every sales transaction but also updates stock and cash position after every transaction INVENTORY Stock of finished goods kept must be for 180 days by farseeing major occasions, holidays, weather and Islamic events like Eid and other festivals. Supply source would be outsourcing from leading manufacturers with own developed brands. There must be well-known imported brand category and other footwear accessories like socks polishes, laces and gifts for children. AMOUNT OF SPACE For the Purpose of this study it is recommended to start project in a rented shop. The approximately area required is 30*30 feet. This space should be available in Lahore at around Rs.60, 000 per month. POWER AND OTHER UTILITIES Telephone-2 lines, one for fax, one for telephone usage. Electricity 3-phase commercial connection Internet facility TIME SCHEDULE Time required for establishing a set up is six to eight weeks. ACCESS Liberty Market is in the heart of the city and one of the leading trading markets. PERSONNEL Position Office Assistant Store In Charge Accounts Oficer Office Boys Total Regd 1 1 1 2 5 Salary 10,000 10,000 8500 6000 40500 Total 10,000 10,000 8500 6000 40500

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MANAGEMENT AND ORGANIZATION The outlet will be managed by the volunteer experienced individuals of the SSO along with hired human resource. Capacity building in human resource is one of the key elements for continuous growth. PROFESSIONAL AND ADVISORY SUPPORT A Board of directors is composed of: Chairperson President Punjab Women Chamber of Commerce Financial Advisor Marketing Director General Manager Attorney Insurance agent Banker Senior Member of SSO Vice President of SSO Member of SSO Zia Tiwana Law Associates EFU Insurance Standard Charted Bank Ltd

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KEY ASSUMPTIONS

Capacity Utilization Assumptions Starting Capacity Utilization Annual Growth Rate in Capacity Utilization Maximum Capacity Utilization for the Project Financial Projections Debt Equity Interest on Long term Loan Debt tenure (Years) No. of installments per year Amortization (years) Income tax rate Operational Assumptions No. of working days in a month Working days in a year Sales per annum (60 pairs per day) @ 100% Product Mix Imported Branded 60 % Non-Branded Cash Flow Related Assumptions Sales 100% cash based Creditors Inventory Cash in Bank CONTROLS The purpose of Crafts international marketing plan is to serve the purpose of guide for the organization. The following areas will be monitored to gauge the performances Revenue monthly and annually.

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Expenses monthly and annually. Customer satisfaction. New product development.

CONTINGENCY PLANNING Difficulties and risk may be as: An entry of more cheap goods in the market by the established competitors. Worst case Risks Include. Determining that the business cannot support itself on ongoing basis. Having to liquidate equipments or intellectual capital to cover the liabilities.

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