Business Plan   animalNEPAL.org  Lalipur, KTM Nepal  Telephone: 977 981044033  

 Business Plan animalNEPAL.org Lalipur, KTM Nepal Telephone: 977 981044033 E‐Mail: [email protected] FEATURING… AND IN CONJUCTION WITH ...
Business Plan for ANP
Table of Contents I.
Executive Summary............................................................................................... 3
II.
General Company Description ............................................................................ 4
III.
Products and Services............................................................................................ 6
IV.
Marketing Plan ....................................................................................................... 7
V.
Operational Plan .................................................................................................. 14
VI.
Management and Organization ......................................................................... 16
VII. Personal and Business Financial Statements.................................................... 17
VIII. Financial Plan ....................................................................................................... 18
IX.
Appendices ........................................................................................................... 22
Draft: 2/5/2004 Page 2 As issued from the ANP Board Business Plan for ANP
I.
Executive Summary What is animalNEPAL.org? animalNEPAL.org (herein known as ANP) is a not‐for‐profit company, founded in February 2004 by a group of committed volunteers, both Nepali and foreign. The company funds and instantiates pet‐care and animal welfare education, promotes micro‐business ventures in the animal health, food and well‐being industry, and initiates community level stray animal programmes as described below: We work in three areas: 1. Animal welfare education and campaigning. Teach pet owners responsible pet care, and conduct specific educational projects and campaigns in order to raise the publicʹs awareness regarding animal welfare in Nepal. 2. Promote micro‐business ventures in animal health, food and well‐being industry. Serve as an example venture, as well as support the establishment of other related micro businesses by disadvantaged groups. 3. Initiate stray dog community care programmes. Initiate a pilot community level stray dogs care and adoption programme aiming at promoting a new concept of grassroots animal welfare within Nepal. This is in response to the conventional and almost non‐
existent model of animal shelters, where animals tend to be sheltered indefinitely and adoption services are limited. Draft: 2/5/2004 Page 3 As issued from the ANP Board Business Plan for ANP
II.
General Company Description ANP will produce Jiggy’s Treat line of products that will serve two purposes: 1. Bring a local manufacturer, distributor, and retail outlet of pet‐care products and services to the Nepali marketplace (tenitivally branded as Jiggy’s Treat.) 2. Establish a new animal welfare organization in Nepal managed by Nepalese nationals as well as ex‐pats residing in Nepal. ANP will be chartered to help support other locally managed animal welfare organizations and animal welfare projects, with a focus on domestic animals and pets. Mission Statement: To enrich the lives of animals in Nepal through the distribution of animal care products as well as to raise animal welfare awareness amongst all those who own animals as pets or raise them as livestock. Goals: Our first goal is to become the first pet‐care manufacturer in Nepal and thereby begin to create a marketplace for animal care products, as well as to establish factories (or contract existing ones) in order to manufacture the products locally. To this end, we can bring a new market to Nepal while at the same time breaking the import‐from‐
abroad‐and‐sell paradigm found in so many Nepali markets today. We want to make quality pet care products available for the local market at affordable prices, so that nutrition among pets is promoted (malnutrition is a common phenomenon in Nepal, even among very expensive and well‐bred dogs flown in from Delhi). Once established in the local market, we will use our expertise to export pet‐care products abroad. Our business philosophy is to employ and train locally, and use profits locally, to fund initiatives deemed appropriate by the Board of Directors of ANP. Rational: The pet‐care industry is obviously a growth industry across Asia as the middle class continues to expand. In the West, specialty pet‐care stores exist in every metropolitan area, some the size of the largest department stores in Nepal. The pet‐care market in Nepal is at its infancy, with stores like Bluebird and Gemini reserving a tiny corner in each store for such products. But the time is right to expand, just as those little corners in each of these stores have been over the past 2 years. But instead of increasing imports of pet‐care products, the time is right to locally manufacture and then distribute products in a dedicated retail outlet. Draft: 2/5/2004 Page 4 As issued from the ANP Board Business Plan for ANP
Our company strengths and core competencies: ANP and the Jiggy’s Treat line of products is initially being staffed by experienced animal welfare workers and business marketing and manufacturing experts. A mature team of business leaders and animal welfare education experts have joined forces to start this venture. Not only do we know animals and the needs of pets, but we know business in Nepal and how to make the best use of Nepali resources and strengths. Why not become another NGO or INGO? We firmly believe that 1) this new venture must ultimately be self‐sustaining and not dependant on a donor organization overseas, and 2) that it will be a business tasked with creating profit as well as providing animal welfare services. In other words, ANP is to be a corporation with a conscience; a role model for other businesses in the community, one that shows how to integrate animal welfare activity within business activity. ANP is to be a company that shows other companies how community‐based businesses can better the conditions within that community, while at the same time providing livelihood in the manufacture of local goods and delivery of local services. Draft: 2/5/2004 Page 5 As issued from the ANP Board Business Plan for ANP
III.
Products and Services Retail Manufacturing The retail manufacturing branch of ANP will distribute locally manufactured pet‐care goods as well as imported items unable to be manufactured or found in Nepal. We will be selling: gift items, pet‐food items, pet essentials and health care products, literature and other media on pets and pet health care, etc.. In addition to being a wholesale distributor, it is hoped that at some point our own retail outlet can be established, and perhaps franchised in the Nepali marketplace within local communities. A chain of local pet shops could also have a small café where pet owners are allowed to socialize with pets, and to exchange information and provide a social outlet for pet owners. Jiggy’s Treat Line This line of pet‐products will be locally manufactured and include the following: of Products •
•
Locally baked fresh dog biscuits •
Locally manufactured collars, leashes, muzzles, tags, blankets, baskets, etc. Educational materials: guide books, brochures, etc as well as specialty gift items: cards, clothes, and unique items like feeders and auto watering accessories. Additional products will also be stocked:, vitamins, grooming items, etc. that are not locally available as of date in Nepal. A library will also be established online under an e‐commerce extension of www.animalNEPAL.org. Draft: 2/5/2004 Page 6 As issued from the ANP Board Business Plan for ANP
IV.
Marketing Plan Market research
Extensive market research was conducted in the fall of 2003 where businesses dealing directly in the pet care and animal welfare market were canvassed in the city of KTM. The market breaks down into two areas: 1. Retail, thru existing Department Store and Grocery Store channels. For example most all of the high‐end retail department /grocery stores in the Valley have a small section, no larger than 4ftx6fxhigh, that stocks collars, leashes, vitamins, and food products for pets, to include a small sampling of cleaning and grooming items. All items were imports, from Malaysia, Thailand, and India. Not one site canvassed stocked any educational materials, nor gift items for pet lovers. In short, these sections provide a basic sampling of products priced for the middle‐to‐high income Nepali or Expat. 2. Retail, via “Kennel Clubs” and Vet Supply Shops. These establishments either sell selected breeds of dogs and/or vet supplies whose clients are mostly local Vets within the Valley. All those canvassed stocked animals in dubious states of health and all pet health and well‐being products were imported from India, and generally retailed at a lesser price than comparable products sold in the small Dept./Grocery store sections. 3. Retail, via Vet Clinics. Some of these establishments but not all stock pet care products, usually purchased from the Vet supply shops and then marked up for resale. Comparative table showing retail prices of a sample pet care items across the KTM market: Table 1 and 2: Retail Pricing Sampler and competitive analysis 1kg Dog Biscuit
Large Dog collar 300 nrs 300 nrs Kennel Clubs / vet supply shops 100 nrs (Indian) 150 nrs Vet clinics 150 nrs (Indian) 225 nrs Department / grocery stores Draft: 2/5/2004 Page 7 As issued from the ANP Board Business Plan for ANP
The following table shows a summary of the competitive analyses: Factor ANP (Jiggy’s Line) Strength Weakness Indian Malaysian Comments Product Lines Jiggy’s Treat Range in prices and selection Brand not known in the market Various Sleeky and others Jiggy’s Line is locally manufactured, others are imported. Price Low to High, priced for all Medium High Jiggy’s Line is lower in price and affordable for more consumers. High Low High Much better quality can be achieved by our associated handicraft factory Vast, based on designs not currently in Asia Low Medium Our product line is based on western designs not yet retailed in Asia Local and Responsive Non‐existent Our handicraft production is the best in the industry for small run production items Dubious High Sleeky is our main competitor and the experts in Asia New None High See point above Quality Selection Service Expertise Company Reputation Sustainable packaging, pet Appearance and human friendly Our products are serviced Non‐existent locally and with an associated website Slick, plastic, Drab, products and wasteful, look like packed for medicine export Sales Method Wholesale, Retail, Door‐to‐
door, and other forms of direct local Wholesalers Advertising Web and local media, plus direct None None Image Best. Made in Nepal using western design Bad, made in India Good, export quality. Our competition only plays in the arena of upper‐class Wholesalers Nepali and Explats, we target the poor and middle class as well. Draft: 2/5/2004 Page 8 As issued from the ANP Board Business Plan for ANP
Some Economic Facts…
•
What is the total size of the market? Estimated on the 500 Lac per year sales. •
What percent share of the market will we have? We could reach 30% market share in 2 years. •
What is the current demand in target market? Demand is proportional to the growing numbers of Nepali pet owners and owners worldwide •
What are the Trends in target market? The trend in the market is to offer varieties of goods within all price ranges, and to place more focus on education and gifts than on raw pet necessities. (ie pet toys and guide books). •
What is the Growth potential and opportunity for a ANP? Great potential and opportunity to make a long lasting impact on animal welfare in Nepal. •
What barriers to entry does ANP face and how will we cope? o Consumer acceptance and brand recognition: start small and personal developing relationships face to face with local retailers. o Shipping costs for exports: forgo exports to the west initially. •
Other possible factors that could affect ANPs growth: o Change in the economy due to the political situation Draft: 2/5/2004 Page 9 As issued from the ANP Board Business Plan for ANP
Products and Services
Features and Benefits Summary Product or Service Features Benefits Educational Seminars, training, Teach Nepalese about pet expositions care and pet development Books and Guides Information on breeds, pet care, etc. Can be translated in Nepali for wider audience. Dog biscuits Fresh local baked treats Low price and affordable by most Dog collars, Tags, and High quality Leashes custom designs Gives local market a Nepali‐
made product benefiting the economy Gift items Greetings for pet birthdays and other personification activities Reinforces pet/owner relationships while benefiting the animals Pet clothes and cold/warm weather supplies Provides animals with protection from the elements Gives Nepalese pet owners product choices never before offered in Nepal. Draft: 2/5/2004 Page 10 As issued from the ANP Board Business Plan for ANP
Customers
•
Age: all •
Gender: all •
Location: not just limited to KTM, but we plan to market in other metro areas of Nepal, for example all District Headquarters such as Hetauda, Dharan, Pokhara, etc.. •
Income level: lower middle class to upper‐class and expats. •
Social class and occupations: all •
Education: all Retailers •
Types: Department Stores, Grocery Stores, Larger Cold Stores, Vet Clinics, Kennels, etc. •
Location: nationwide and in the future, export to clients in the west •
Size of firm: small, medium and large Competition
None local, see the charts Table 1 and 2: Retail Pricing Sampler and competitive analysis on Page 7. Niche
Our niche is in high‐quality affordable Nepali‐Made products that are export‐ready and with flexible designs that can change based on our customers. Sales to local markets as well as to the EU, USA and Japan. Strategy and Promotion
We plan to promote and sell locally using face to face sales and web advertising. We can aggressively be price competitive with Malaysian imports and appeal to the sense of Nepali pride in craftsmanship. Direct leafleting, Web, and other direct marketing means will be used to save on advertising costs. Draft: 2/5/2004 Page 11 As issued from the ANP Board Business Plan for ANP
Promotional Budget •
10K nrs per year initially. Proposed Location •
Currently based out of Board Members homes, no office has yet been established. This is a Mom and Pop operation out of the Garage so to speak. Distribution Channels •
Retail •
Direct (mail order, Web, catalog) •
Wholesale •
APN’s sales force •
Bids on contracts Draft: 2/5/2004 Page 12 As issued from the ANP Board Business Plan for ANP
Sales Forecast
This chart is a Worst‐Case Scenario with flat sales over the initial first 6 months. Draft: 2/5/2004 Page 13 As issued from the ANP Board Business Plan for ANP
V.
Operational Plan Our operational plan is simple, and based on the American Mom & Pop working a biz out of their garage model. The difference here being that we are partnered with TakCareNepal, a locally based Handicraft Factory located in Thamel Nepal with over 40 employees and a state of the art tailoring facility. Production
TakeCareNepal is a state of the art custom design house shipping millions worth of Nepali handicrafts all over EU and other parts West. Our food production facility has not been selected yet, but we have numerous high‐quality german‐trained bakers willing to take on the production of Jiggy’s line of dog treats. We are currently in the product development phase at this time of writing, and plan to provide the best customer service and product in all of Asia. Our inventory control will be digital, and controlled with a roving scanner connected to our comptroller’s laptop. Quality control will be in excess of ISO2000 although certification is not planned until we are in into Phase II: exports to America. There are two members of the ANP board of directors who are also in charge of product development, so end result will conform precisely to the organization’s goals. Location
As mentioned, we are using facilities currently located in Board Member’s homes, outside of what TakeCareNepal provides at the factory. Our entire administration is done on personal computers and our office supply capitalization and costs are kept low in this manner. Phase II of the business will include retail sales space plus admin office. Legal Support
•
We have retained a local lawyer who is responsible of advice and the registration of animalNEPALorg as a legitimate business entity in Nepal. •
Trademarks, copyrights, and/or patents will be established in the USA if needed for new products developed. A patent attorney has been retained there as well, gratis. Draft: 2/5/2004 Page 14 As issued from the ANP Board Business Plan for ANP
Personnel
•
In Phase 1 of the business, no direct employees will be retained, but in Phase II we plan to hire 1 admin / retailer to staff the office and store. •
All employees will be Nepali nationals or local refugees with preference given to the disadvantaged classes. •
Pay structure will be commensurate with local pay scales plus 10%. •
On the job training will be provided. •
A contract baker will be do all food production and TakeCareNepal is responsible for all other goods as relating to handicrafts. Sunshine Publishing may be contracted for translation of materials into Nepali for our educational products, and other goods will be purchased from wholesalers who are “animal‐
friendly.” Inventory
•
Inventory will be kept at a minimum and held at the TakeCareNepal’s state of the art facilities. •
Average value in stock will be low with an expected high rate of turnover with some seasonal buildups around the Christmas and Dasain seasons. •
Lead‐time for ordering will be short, as we plan to be able to deliver quickly. Suppliers
•
A supplier list is available on request. Credit Policies
•
No credit is expected to be extended beyond current Board members conducting business abroad on the behalf of APN’s activities. Draft: 2/5/2004 Page 15 As issued from the ANP Board Business Plan for ANP
VI.
Management and Organization 1. Board of Directors and other Principles ‐ The Board of Directors will initially exist out of five members (Jigme Gaton, Roselle Prisno, Jessy Rai, Maria Rai and Lucia de Vries) but can be extended as and when the Boards decides so. In addition, one attorney in Nepal and one in Nepal has been retained. We also have Mandy Lamkin in Austrialia as Honorary Advisor to APN. 2. Decision making procedures – Daily management of the company will be carried out by the Board of Directors, based on a division of tasks and responsibilities. Decision‐
making will be based upon mutual agreement. In case of a deadlock the Chairman will call for a majority vote. 3. Profit sharing ‐ Profits will be reinvested but initial investments can be paid back if demanded. No profits will be paid but reasonable salaries can be provided to the Directors. 4. Signatures for bank drafts ‐ Two members of the Board of Directors will be allowed to sign bank statement and cheques, one being Nepali, one being foreign. 5. Transparency – In order to promote transparency annually volunteers and interested members of the public will be called for an Annual Meeting during which an Annual Report and Annual Financial Overview will be presented. Additional information will be provided through website, and printed materials. 7. Inclusion of newcomers – Volunteers and promoters will be called ‘Associates’ or ‘Ambassadors’ of the company, depending on their interests. They will be informed about decisions taken by the management on a regular basis. Committed volunteers will be invited to join the Board of Directors after one year of selfless support. 8. Closure ‐ In case the company needs to be closed down due to a collective decision by the Board of Directors the assets of the company will be distributed evenly among the members of the Board. Draft: 2/5/2004 Page 16 As issued from the ANP Board Business Plan for ANP
VII. Personal and Business Financial Statements Personal Statements
•
Available on request of all members of the board. Startup Expenses and Capitalization
• 1,800 government permit fees
• Legal fees 3.5 Lac
• First year operating costs: 1 Lac
• 2 Lac to purchase imported stock not yet locally available
• 1 Lac for product production startup of Jiggy’s Treats stock (locally
produced items).
• 50,000 nrs for advertising and marketing of new business.
Total startup cost estimated @ 5 Lac nrs or 7,000 USD.
Draft: 2/5/2004 Page 17 As issued from the ANP Board Business Plan for ANP
VIII. Financial Plan 6-Month Projections
Draft: 2/5/2004 Page 18 As issued from the ANP Board Business Plan for ANP
Draft: 2/5/2004 Page 19 As issued from the ANP Board Business Plan for ANP
Draft: 2/5/2004 Page 20 As issued from the ANP Board Business Plan for ANP
Draft: 2/5/2004 Page 21 As issued from the ANP Board Business Plan for ANP
IX.
Appendices The following items will be made available on request and on our website www.animalNEPAL.org/bizplan: •
Brochures and advertising materials •
Industry studies •
Blueprints and plans •
Maps and photos of location •
Magazine or other articles •
Detailed lists of equipment owned or to be purchased •
Copies of leases and contracts •
Letters of support from future customers •
Any other materials needed to support the assumptions in this plan •
Market research studies •
List of assets available as collateral for a loan Draft: 2/5/2004 Page 22 As issued from the ANP Board