Entrepreneurship

ASSIGNMENT - II

Submitted To
Dr Masood

Submitted By
Muhammad Jayyaad Arshad

Syndicate
B

Reg No
259246

Department of Mechanical Engineering

College of Electrical and Mechanical Engineering, NUST, Islamabad

January 31, 2021

 OVERVIEW

JD Guardian is the first project that is going to provide RING. The RING is the electric home
bell with two way talking and camera facilities to record sound and video in Wah Cantt. The
aim of business is to provide the high-quality bell to meet our customer’s desire. We have
aim to enlarge the business to enhance the sale and to strengthen the position in the market
and achieve the profit within one year. JD Guardian early strategy is to sell RING through
retailers. After successful business setup, we will start online selling all over the country.

Problem Statement

RING is the home security system that provides protection to its owner and residents. Many
theft cases occurred during the recent months. People are afraid and want a solution. Hiring a
housekeeping guard is expensive solution. JD Guardian take initiative to tackle this issue and
provide affordable solution in the form of viewing and seeing doorbells.

PRODUCT DESCRIPTION

Value Proposition and Diffentiation

Our product provides following features to the customers which are different from the current
doorbells available in the market.

1. The 1080 ppixels HD wired video, advanced motion detection and customizable
privacy settings.
2. Advanced motion detection helps owner to know when someone’s at front door
before he rings the doorbell.
3. Get real-time notifications by sending straight to your phone.
4. Night vision with sharp contrast ensures owner never miss a detail even in the dark.
5. Record all your videos, review what missed for up to 60 days, share videos and
photos.

Product Manufacturing

Our product development include the following steps.

1. Body will manufacture using plastic molding.

 2. The molding material will be acquired for Plastic Molder House. Initially 2 sack of 20
kg will be purpose at price of 10,000/-.
3. Equipment will lease from local factory with daily rent of 50/-.
4. Bundles of electric wires will be purchased from Pakistan Electronics at price of 9 /-
per meter.
5. We will make a contract of 6 months in the start. After 6 months, either we make
another contract or contact other two suppliers, which we have already found, if his
quality and rate change.
6. Electric circuits and cameras will be purchase in a lot from China. Initially 500
samples of each will be ordered. The total price for electric circuit is 25,000/- and for
cameras is 50,000/-.
7. Connections and two-way talking facility service will be done by our own software
and hardware team.
8. The manufacturing and assembly will be done in house which is rented at 10,000/-
monthly.

MARKET ANALYSIS

Customers and Trends

RING will have high market value because of increasing demand of the security. Further,
everyone is not able to hire costly security guard. Low-income persons want cheap solution.
RING satisfies their need. According to statistic aanalysis of last year, 5000 new houses
were built in Wah Cantt. Our target market is new houses as well as old houses from 5 marlas
to 3 canals.

Market Competitors

A complete analysis of the market has been done to evaluate the competition and program
strategies. Knot House Company and Tick Tuck Company are the strong competitors
working from many years and have deep roots encored in the market.

But their prices are on the high end that become much costly for an average customer. Their
market approach is simple. They rely heavily on their WhatsApp and Facebook business
account and have a simple website that only includes location and contact number
information of customer. They make everything on their own.

We have strategy to compete them which is highlighted below.

1. We will purchase circuits from China at very low price and assemble them. This will
decrease cost of RING.
2. We will provide high quality bells in affordable price and give warranty of 2 years.
3. We will also provide facility to make shape of bell body according to customer desire.
4. We will provide our staff that install the RING in customer house.

REACH TO CUSTOMERS STRATEGY

Marketing Strategy

To become successful in a business, we need to create a powerful business model from start
to end and learn from other brands and their strategies. Our goal is to keep our marketing
budget above 5% of total annual sales.

1. We will employ a local public relations company to help us develop and implement
strategic marketing strategies and direct our marketing efforts in a cost-effective
manner.
2. Distributes pamphlets to houses and use local media and direct email marketing
campaigns.
3. We will upgrade our product using social media platforms. Example: Facebook Ads,
Instagram Ads and YouTube Ads.
4. We will write blog about our brand and add best pictures of our products for blog
articles.

Sales Strategy

1. JD Guardian will take first step to approach shops and sell RING directly and in retail.
2. Online selling will be the second step with opening an online store.
3. We will show some additional benefits like warranty of 2 years to our customers.
4. We will give them a freedom to exchange the products if they don’t like the previous
one.
 5. We can also provide weekly and monthly promotion and discount offers.

Pricing Product

Initially we will try to sell our product at the lowest price so that we can get some sales. The
other competitor’s product price is 3000/- to 5000/-. RING will sell at 1000/- to 1500/-. This
will help to increase our customers. When we will become successful to recognise the real
value of our product then we will gradual increase the price. This helps to not the loss of
customers and can work better for the company.

RUNNING OPERATIONS

Leadership

1. Two share holders

45% Muhammad Jayyaad Arshad

45% Ali Hassan

2. Staff will be hired on contract basis of six months.

3. Advisor will give equity of 5% for their services.
4. Shareholders will lead organization and held staff accountable for any problem.

Administration

1. President

Me and Mr. Ali will have management for different aspects of the company, which include
operations, marketing, strategy, financing, human resources, compliance regulations, sales
and public relations.

2. Chief Financial Officer

Mr. Waqas. He will oversee the development and implementation of changes in financial
reporting and management systems under general and major changes as well as
recommending financial policies and procedures.
 3. Human Resource Manager

Mr. Fahad will manage staff. He will oversee the recruiting, interviewing, and hiring of new
staff and serve as a link between an organization's management and its employees.

4. Sales and Marketing Manager

Ms. Rahat. She will be responsible for developing and implementing marketing programs to
drive sales and public awareness.

5. Warehouse Manager

Mr. Abbas will work in warehouses where he will direct the acquisition, receipt, and storage
of goods.

Role of Staff

A small sales staff will cooperate co-owners with securing sales, assisting customers and
general maintenance of stock on the floor. Three temporary employees will be hired to assist
customers. We will hire them on contract basis. We will conduct a weekly session to develop
related skills in our workers. We will hire two more employees when our business gathers
500 customers. With the help of employees, JD Guardian will run seven days a week from 10
a.m. to 6 p.m.

Advisor

 Financial Advisor

1-Abdul Ghafoor

2- Manzoor Hussain

 Legal Advisor

1-Usman Ghani

2- Bashir Gull
 FINANCIAL REUIREMENT

Financial Assumption

1. We expect to sell 1000 RING every month.

2. The manufacturing cost is 500/- per piece. We will sell each piece with 1000/- to
1500/. Our profit margin is 2 to 3 times more than manufacturing.
3. We expected that our annual sales will be around about 15,000 and annual profit will
be 6,000,000/-
4. 5000/- will be required for each staff. We will hire 3 staffs so our monthly expense
will be 15000/- and six months expense will be 90,000/-
5. Our initial monthly marketing expense will be 2000/-. The expected annual expense
in our marketing will be 20,000/-.
6. We initially need 200,000/- for starting our production. We will need to buy delivery
boxes, molding material, chips, cameras and rent house.

Sources of Funds

1. We ourselves are the first financer. Both shareholders contribute 400,000/-.

2. Our second option is to get funding requirements from the family and friend circle.
3. Our third option is to get money from banks or other agencies.

Cash Flow Breakeven

Initially we have capital of 800,000/-. This is our own money and from our friends and
family. Our burn rate is round about 10,000/-. We hope that we will acquire cash flow
breakeven in 6 to 8 months. We will earn profit within 1 year.

Requirement of Investment

1. Equipment
2. Marketing
3. Reach and Development

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