Business plan for a helmet manufacturing industry in the thiruvotriyur region near Chennai

Table of contents
Introduction
Executive summary Business description Plan of operation Management team Industry analysis Competitor analysis

Marketing Plan
Financial Plan Reference

Introduction
The main aim of this bulletin is to serve as an example of a business plan for a business plan developed using the format from EB 2002-06, that demonstrates the marketing potential and the financial feasibility for a helmet producing industry. The plan has three major components. The first component emphasizes the plan of operations to the management team for the helmet industry The second component is the development of a marketing strategy that will differentiate the companys helmet from other helmets in the market. The third component of the business plan estimates the investment and operating costs for the industry producing the highest quality helmets.

Mission Statement
To be a leading property and casualty insurance company through the delivery of high quality products and superior service, built upon a foundation of innovation and financial strength.
Our mission is to produce the best quality helmets that can secure the life of drivers from accidents. The industry will provide an enjoyable lifestyle and adequate standard of living for both the owner and employees.

Management Team
A.Hemanth Kumar, General Manager (CEO) A.Dhivakar, Production and testing Manager S.Arputharaj, Purchase Manager G.Gokul, Accounts Manager P.Anand Inigo, Marketing and sales manager

Executive summary
o The proposed helmet manufacturing industry will be located in the thiruvotriyur region near Chennai. o Annual production will begin at 5.25 lakh pieces in year one and will increase to 7lakh pieces in three years. o The industry will produce the following 5 types of helmets: Full face helmet, Motocross helmet, flip up helmet, open face helmet, half helmet. o The majority of helmets will be in the companys showroom but as production increases we will utilize other distribution channels (distributors) to reach our customers. o The key to the industrys success will be its best quality, aesthetic design and customer satisfaction.

Business Description
o I am entering into this business due to my interest in creating a product. Moreover my product is a lifesaving one which gives me a pleasure of service. I have worked as production manager and testing engineer for a number of years gaining the experience. I need to carry out my dream of owning and operating my own company. o There are a few helmets producing industries in local that concentrate on low cost helmets, which may be good for short time but fail at extended usage. o However I feel that there will be a growing demand for our company in the near future. o Research shows that people have become more sophisticated on helmet, that they are looking for best quality and aesthetics. o The industry is currently in the developmental stages, but the initial production plans and growth strategies have been established. The industry will produce all the five types of helmets throughout the year.

Plan of Operations
A good design starts from a thorough understanding of the concept of a new product.
The common parts of a helmet are Outer shell Liner (Foam) Visor Comfort Padding Ventilation System Retention System The raw materials used are Polycarbonate Polystyrene Alloy Steels
Outer shell

Weight of helmet parts

liner visor comfort paddings

23% 47% 18% 12%

Personnel requirements
Chief executive officer Purchase Manager Design Engineer Production manager Test Engineer Accounts Manager Marketing Manager Clerical/ secretarial Webmaster Workers Showroom manager

Competitor Analysis
The helmet industry is highly fragmented and very competitive. A number of new helmet companies are also entering the market and the number of new helmets will continue to increase
1.Vega Helmets 2.Studds accessories Ltd 3.Steelbird Hi-tech India Ltd 4.Ls2 Helmets 5.Daijiya Helmets 6.Nuvo Industries 7.Sparks Helmets Pvt. Ltd India, 8.KBC Helmets 9.Joe rocket India Ltd 10.HJC Helmets 11.Arai Hi-Tech Helmets 12.Amini Industries India, 13.Surabhi International (P) Ltd India, 14.Bharat Traders (Exports) India. 15.Aerostar Industries

Marketing Plan
Target Market
The proposed industry is targeting end consumers who are wealthy, collegeeducated persons and racers. The ideal customers are educated about the specifications of various helmets in the showrooms. The model industrys second target market consists of various business groups; the first being wholesale distributers.

Marketing means
Distributers are responsible for selling the product to premier showrooms and sales shops located throughout the nation. The next business group is the instate showroom managers. The industry is looking for common showroom and bikers accessory shops. The final business group is targeting local wholesale purchasers and the industry is looking for shops that concentrate on selling best quality helmets. In addition to the above online sales and marketing is also done which is expected to increase the sales of product in outstate regions

Promotion

The proposed industrys promotion goal will be one of differentiation, and all
promotion activities will help reinforce the industry's premium positioning status. Promotion activities will be targeted at both end consumers and middlemen. End consumer promotion events will be intended to bring customers to the industry for advertising, non-commercial activities. Additionally, the industry will participate in the appropriate successful production trail program. Events targeting middlemen will focus on building relationships and reestablishing contact. These events include regularly visiting showrooms and shops.

Distribution strategy
The following bar chart summarizes the distribution strategy of the products for the proposed industry.
Distribution strategy
2.5 2 1.5

1
0.5

0
Distributors Instate showrooms Shops Wholesale purchasers Online sales

Year 1 (In lakhs) 1.75 0.8 0.7

Year 2 (In lakhs) 1.8 0.9 0.7

Year 3 (In lakhs) 2 1.04 0.75

Year 4 (In lakhs) 2.05 1.28 0.87

Year 5 (In lakhs) 2.3 1.52 1.1

0.9 1.1

1 1.16

1.1 1.18

1.2 1.3

1.4 1.5

Financial Plan