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Heaven Driven Business Plan | 1
Executive Summary “Heaven Driven” is a newly established small business, primarily involve in providing condoms through a variety of flavors which are suitable for men especially teenagers who enjoy satisfying sex lives while concerning their safety. The range of our condoms includes a kaleidoscope of colors, textures, sizes and tastes in which customers can select the ones that perfect fit with their love-lifestyles. Our products will be first launched in convenient stores, supermarkets, and other retail stores in Bangkok which can be found easily and close to our target customers. The company also plans to expand the business in other provinces in Thailand such as Chiang Mai, Chonburi, Phuket and etc. Furthermore, our company intends to devote a strong to the ‘Poktoong’ campaign which is sponsored by Ministry of Public Health. Since we hope that our contribution can help the country in reducing the rising number of Thai people who are living with HIV/AIDS and preventing them from such life-threatening condition as well. “Heaven Driven” will engage in a subcontract with a manufacturing enterprise to assist the company in supplying condoms. We mainly focus on generating ideas of product design, conducting marketing researches, and modifying products to meet customers’ wants. Our special product is the “Extra Sensitive” which will be introduced to the customers as the thinnest condoms in our latex range while still providing the same high level of reassurance and protection. We expect our business to have a total initial investment of approximately 2 million baht with a payback period of approximately 2 years. Heaven Driven will generate net profit margin about 8.7% on average over five years with return on
Heaven Driven Business Plan | 2
investment approximately 50.8% approximately 62% over five years.
and
return
on
equity
Heaven Driven requires quite a large amount of investment and due to the fact that the business involves with the manufacturing process, raw material is a very important resource in the operation. Besides, marketing efforts would be another driving factor to generate company’s revenue.
Company Profile Heaven Driven Company Limited is a newly funky condom brand which has broken the old design to deliver a new range of condoms packed with cool and funky fun. The company's core business is providing, marketing and developing high quality male condoms that satisfy our customers. The brand represents superior products as a result of advanced manufacturing technology implemented a wide range of technical skills overseas. Our high-quality brand, "Heaven Driven" promises "You can trust Heaven Driven products." We stand behind our products with a complete 100% moneyback guarantee. The distributions can be accessed easily. In addition, we are ready to deliver our products within 24 hrs, after our customers place an order. The shipping, packaging and billing is totally confidential. That is to say we have a duty to fully satisfy our customers, stockholders, employees, our associated companies, and their families throughout our business. We absolutely promise the involving parties progress as a company in order to guarantee their satisfaction. We would like to tell the world that we are extremely proud of the compliments as well as complain on our products and services. There are competitions in this industry in Thailand. Whoever are the competitors, we will do our best effort to achieve customer satisfaction and for our "Heaven Driven" products. Vision
Heaven Driven Business Plan | 3
•
To be the leader of the sex ing company by serving the unlimited happiness and especially perfect security that have done by new type of condoms and other products in Thailand.
Mission • Promising to provide the new type of condoms that focus on Thai people sense and with Thai taste. • Ensuring all customers that our products can protect any types of diseases which can be infected through sex for 100 % absolutely. • Attempting to people in society to concern about having secured sex. Goal • To encourage Heaven driven to be a well-known superior sex products within 2 years. Product Design • Overall Since Heaven Driven is providing condoms, our products will look unique, perfect, and, colorful but enduring and comfortable to fit as well. In addition, our different flared shapes make them easier to put on and more natural and sensitive when they use our condoms. • Decoration • Our condoms will be extra thin with varying sizes, lengths, and widths which give a "closer" fit. • Also adding some eye-catching features that make the products look attractive and stimulate customers to purchase. • Together with the containers which are colorful and provide the methods of using condoms. Open Hours • Heaven Driven Company Limited Head Office hours is 8:30am – 6:00pm. • Our shops will operate 24 hours.
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• For the operation hours of those agents like convenience stores, supermarket, and other retail stores are subjected on their normal time basis.
Marketing Plan Marketing Objectives • •
To introduce and launch our products in Bangkok within 2010. To distribute our products to other provinces in Thailand concentrating in tourist destinations such as, Chiang Mai, Chonburi, and Phuket in 2012.
Marketing Mix Product: As Heaven Driven brand condoms being made from quality, it helps reduce the risk of pregnancy and sexual diseases. Our brand provides wide range of condom design, an advanced material so strong, durable, silky soft condom and condom with lube for a natural experience. Also, it can be made much thinner with special
Heaven Driven Business Plan | 5
flavors such as mint, aloe, green tea, orange, chocolate candy, liquor and etc. Our brand condoms are designed various size; XL, L, M and free size. Price: “Heaven Driven” prices on condoms are really indifferent compared to other places. The price for a box of three ordinary condoms is approximately 30 Baht, The price for a box of three condoms with flavors is approximately 40 Baht. The price vary depend on size, design and lube. Place: The location of our head office is on 19th floor, 23 Sukhumvit 63, Klongton Nua, Wattana, Bangkok 10110, Thailand and our store is right there next to the building which will be near our main target markets with a plus of the convenience in transportation as we are also near the Ekamai BTS Station. Our products can also be found in many Thai drug stores, small retailers and online stores. Promotion: The difference between the price on the box of three and the box of one dozen equals for a 25% discount. When purchased in a package of two dozen, the price drops more than 40%. For Valentine campaign, we give “buy one box get one free” to increase use of condoms and help to lower infection rates (HIV).
Target Market Segmentation The market can be segmented into major and minor target groups which are; Major target market: - Male and Female - 15 – 50 years olds - Middle to high income - Health Centre and Hospital - Food and Drug istration Minor target market: - Customers who prefer to have safe sex - Sexually active teenagers - Night club people - Nightlife travelers
Heaven Driven Business Plan | 6
Competition Profile (SWOT Analysis and Fives Force Analysis) SWOT Analysis S – Strength • • • • • • •
Innovation in product features and quality Availability of raw materials High product safety Almost essential for sexual activity Available in many sizes, colors, and flavor to attract more consumers Increasing awareness and increasing of sales Using condom to avoid HIV
W – Weakness • • • • • •
The company is the new comer in the industry. Therefore, it affects the company image and credit. Unable to directly Surrogate ment for condom Social, culture, and traditional hindrances Not 100% completely guarantee on pregnancy control Easy for duplication in product designs
O – Opportunities •
• • • •
Rapidly advancing technology makes manufacturing more efficient, less costly and more effort can be placed on distribution There is an increase in number of persons who enjoy the night life. People concern more about their health and safety. Many shops are available for condom to be one of their products. The Ministry of Public Health s and encourages more on “Poktoong” campaign. This means they encourage people with use condom.
T – Threat • • • •
Lots of competitors in the market. Society – the Roman Catholic Church generally opposes condom usage. Masturbation and the using of sex toys Trade barriers – government restriction on advertising
Heaven Driven Business Plan | 7
•
Limitation of brand loyalty
Fives Force Analysis Substitute products
Bargaining power of suppliers
Rivalry <Medium> Bargaining power of buyers
1.
2.
3.
4.
5.
Threats of new entrance
Bargaining power of suppliers
• In Thailand, there are quite a few manufacturers who are engaged in producing condom that we can hire them to produce our products. Nevertheless, it is necessary for us to control the quality of the products to meet our required standards and most of those manufacturers have the guarantee standard. Thus, we can choose among them to be our successive manufacturer or in this case our supplier. Bargaining power of buyers
• The switching cost is really low due to the fact that consumers mostly do not really care which brand of condom they are using. Therefore, we can carefully predict that the brand loyalty is quite low. Furthermore, they tend to switch the brand of condom easily, depending on such factors like, price and accessibility. Rivalry <Medium> • There are quite a few competitors that already exist in the industry of condom market. Beside, the cost of entry into this business is relatively low. Potentially, this event will also attract new comers to enter into this market, as well. Substitute products
• Even though there are a few ways to be used in order to have the birth control; for example, birth control pill, counting days, etc. None of them can prevent you from venereal disease, like condom. Hence, there is no product that can substitute condom totally. Threats of new entrance
Heaven Driven Business Plan | 8
•
In order to enter into the industry of condom business, you do not need much of capital or the initial investment so the cost of entry is quite low. Also, in Thailand, there is no law or regulation that prohibits the investment in this business. Consequently, there is relatively low barrier of entry into this type of business.
Market Strategy Advertising Method We are offering free product samples in the advertising method in the beginning stage of launching our products. In addition, we select the “World Aids Day” and other related events as the appropriate times for introducing our products and showing our dedicated s for the “Poktoong” campaign as well. Since, we are hoping that these events would definitely give us an opportunity to attract people and probably make our target market aware of our products. Consequently, they may be interested in purchasing condoms. The next step is to place ment in newspaper, magazine, spot radio, and through guideline websites since we also have our own website for customers to search for information of the products if they are interested. Moreover, after-sales services are available such as online live chat for the customers to comment of the product quality and online guidelines regarding sex and condom usage. In addition, the product will be ed with the physician prescription (Dr). We are also planning to distribute our products to other provinces as well; the same advertising method would also be used at the opening stage of the expansion of the products.
Heaven Driven Business Plan | 9
Timetable for Promotional Campaigns (January, 2010 – January, 2011) Ta sk 1 2 3 4 5
6 7 8
9
10
11
12
13
14
15
Person Responsible Field Trip for major dealers (January 18-22) Grand Opening (February 14) Offering free product samples (February 14: Valentine's Day) Placing ment through various sources Offering free product samples (April 10-18: Songkran Festival) Sponsoring TV programmes (Channel [V] Thailand) Launching 'Gimme More' (May 1) Discount promotion for package purchasing (June 1-30) University Road Show: 'Sexual and Reproductive Health Education Program' (July 19-30) Launching 'Break The Ice' (August 1) Offering free product samples (August 12, Ministry of Public Health and AIDS Thai Organization) Sponsoring TV programmes (MTV Thailand) Offering free product samples (October 30-November 5: Loy Krathong Festival) Launching 'Radar' (November 1) Offering free product samples (December 24-January 2: Christmas Eve & New Year Festival)
Ja n
Fe b
Ma r
Ap r
Ma y
Month Ju Ju Au n l g
Se p
Oc t
No v
De c
Ja n
H e a v e n D r i v e n B u s i n e s s P l a n | 10
16
Rewarding customers as the celebration for the first anniversary
E-Commerce For online marketing, customers can visit our website by clicking banner ads in many popular websites such as Sanook.com, MThai.com, Facebook.com, and etc. or entering the website directly at www.heavendriven.com. The website will be providing the company background, our products, promotions, location, shop online, live chat, and us. • Company Background: shows the background of Heaven Driven Company Limited. • Our products: provides both names and prices of all products that are currently launching in the market. • Promotions: shows all promotions of our company to potential customers. • Location: shows the clear map and address of our head office and our store. • Shop Online: allow customers to place the orders via our websites. • Live Chat: offers after-sales services of answering customers’ enquiries and allows them to give comments. • us: will provide for visitors to make some comments or to ask some questions about our product. As we know that the color of Heaven is “White”. So we will use blue and white as main colors for the website. The cool color tones (blue, white) on our website not only can create relaxing feeling to the site visitors but also means suggests sky (simple life, paradise), clearness, stability, restfulness, and pureness.
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Management Plan Organization Chart
Management Summary 1. Management Role • Strategic planning and managing the resources of the company as a whole.
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• Also responsible for the operation of distribution with the assistant of General Manager. 2. Marketing Role • Generating and executing marketing plan of the business and public relations. o Creating new campaigns and promotions to attract the customers. o Creating the brand associate and brand awareness to the customers in order to gain the brand equity such as brand loyalty.
3. Finance & ing Role • Responsible for financial management and planning. Control all about the revenues and expenses. • In addition, the person taking the role will also be an ant responsible for providing, organizing, and managing financial statements in the company.
Hiring Position 1. General Manager (1 position, experiences required) • The general manager will be controlling in almost every activities that occur in the company so the general manager must have experience in running a business. • Responsibilities o Controlling most of the activities in the company. o Advising subordinates in order to improve the quality of their works. 2. Inventory Controller (1 position, experiences required) • The inventory controller will be performing activities to monitor and maintain inventory control of merchandise so it is very important for our inventory controller to have experience in this field. • Responsibilities
H e a v e n D r i v e n B u s i n e s s P l a n | 13
3.
4.
5.
6.
7.
o Evaluating inventory levels and notifies vendor when reorders are necessary. o Performing receiving, stocking, distributing, and packing in addition to inventory control. istrative Officer (1 position) • Responsibilities o Assembling and analyzing fairly complex information or data and describing results in a written report. o Supplying istrative services to the company and operating under general supervision. Clerk (1 position) • Responsibilities o Performing routine office or clerical tasks o Sorting and distributing mail, photocopying, filing, posting or proofing data, or answering telephone calls and recorded messages. Sales Representatives (4 positions) • There will be four Sales representatives in our company. • Responsibilities o Conducting sales calls, schedules promotional work and track sales activities. o Quoting prices, prepares proposals and provides information regarding of sales and delivery dates. o Gathering data on marketing trends, competitive products and pricing. Store Worker (1 position) • Responsibilities o Maintaining receipts, records, and withdrawals of merchandise inventory and receiving and unpacks materials and supplies. o Checking supplies and reporting when stock is low and damages and discrepancies for ing, reimbursement and record-keeping purposes. o Also interacting with customers and provide information to customers. Cashier (1 position, with some ing background)
H e a v e n D r i v e n B u s i n e s s P l a n | 14
• Cashier will be working in the store area. She should have some of the ing background and should have accuracy in receiving payments and giving changes. • Responsibilities o Responsible of the petty cash inside the store. o Also be an assistant for ant. 8. Delivery Driver (3 positions) • Responsibilities o Driving to and from delivery destinations and delivering cargo to customers within a local area. o Interacting with customers to obtain payment, signatures and giving receipts. 9. Outsourced Housekeeper (1 position) • The housekeeper will be outsourced and perform cleaning duties to maintain our office in a clean and orderly manner.
3 Year Personnel Plan
Positions:
Office Personnel: Owners: - Management - Marketing & PR - Finance & ing Employees: - General Manager - istrative Officer - Clerk - Sales
Salaries & Wages / Month Year 1 Year 2 Year 3 No. No. No. of of of Amount Amount Amount Peop Peop Peop le le le
1 1
฿14,000
฿14,000
14,000
1 1
฿14,000
14,000
1 1
1
14,000
1
14,000
1
14,000
1
12,000
1
12,500
1
13,000
1 1 4
8,000 7,000 7,500
1 1 4
8,500 7,000 8,000
1 1 4
8,500 7,000 8,000
14,000
H e a v e n D r i v e n B u s i n e s s P l a n | 15
Representatives Store Personnel: - Inventory Controller - Store Worker - Cashier - Delivery Drivers Outsourcing: - Housekeeper Total No. of People Total Payroll per Month Total Payroll per Year
1 1 1 3
10,000 6,000 5,000 6,000
1 1 1 3
10,000 6,000 5,000 6,000
1
1
1
17
17
17 ฿141,00
฿142,50
0 ฿1,656, 000
0 ฿1,692,0 00
0 ฿1,710,0 00
Office 1. 1 Couch 2. 7 Pedestal desks and 11 chairs • 3 Workstations • 8 Letter trays, 7 Tidies, and, 8 Mag files • 20 pens and 12 pencils • 2 Perforators, 3 staplers, and, 2 scissors 3. 1 Photocopy machine 4. 4 Desktop computers and 4 laptops 5. 10 Filing cabinets and 5 document shelves 6. 40 Ring binders 7. 2 Telephones and 6 telephone lines 8. 1 Meeting room • 1 Meeting table and 6 chairs • 1 Whiteboard and 2 whiteboard marker
Store • • 2.
11,000 6,000 5,000 6,000
฿138,00
Facilities and Utilities
1.
1 1 1 3
1 Cashier counter 1 Cashier machine 2 pens 2 Product shelves
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3.
1 Telephones
Value Chain Management Primary Activities: 1.
Inbound logistics • Heaven Driven will select high quality raw materials from the reliable source and order a manufacturing enterprise to produce condoms on behalf of us which always provide the higher quality of the products. • We also use the Make-to-stock process which means we will stock the raw materials such as plastics and latex at the right amount (according to the forecasting). Therefore, our condoms are always available for the customers to purchase. Moreover, we can save more cost. • According to the Make-to-stock process, we will deliver the products periodically like once a week or once a month. 2. Operations • After receiving the unfinished product from the manufacturer, the company will randomly test the quality of the product which will take place in the laboratory room. • After that, the sales and marketing department will create the strategy to distribute the product to all customers, such as, how to launch/introduce the new product to attract the most customers. • The product will be sent to repack in a new package which will be more attractive to be ready to sales. • Under the planning, the financial department must provide the information about sales and marketing budget to sales and marketing department in order to let them know how much budget they have to deal with. • Then, launch the product to the market with the grand event to attract and customer and to build brand image. 3. Outbound logistics • As the company manages our own distribution, delivery is one of the most important mechanisms to the company. The delivery must always be on time in order to reach the
H e a v e n D r i v e n B u s i n e s s P l a n | 17
standard. The product will be carried by truck to the final customer such as to the hospital, the club. • For the retailer, there will be a small truck response to the delivery in order to separate the work and to reduce the degree of confusion in working to the workers. 4. Marketing and Sales • For advertising, Heaven Driven will promote the products by using newspaper, magazine, spot radio, and through guideline websites. • For promotion, we will offer free sample products or run promotional campaigns on every special occasion such as Valentine’s Day, Songkran Festival, Loy Krathong Festival, Christmas holiday, and New Year. • The marketing and sales department will create the marketing plan for the products. (see Marketing and Sales part) 5. Service • Delivery time to the customer must be exactly no delay with the full guarantee for anti-protection of the product. • After sales service, as the company create the website for the customer not only to give comment to the company, but also the website provides the useful information about the sexual behavior and how to use the product correctly to achieve the high product benefit, the company has to provide valuable information for the customer in order to maintain the order. • All sales representatives are required to arrange the “meet and greet” with the customer in order to maintain the relationship and also create a good-will to the company toward both existing and new customer. • The General Manager requires arranging “meet and greet” to the main customer such as the hospital, to inform the customer about the company operation in order for the customer to ensure that our product meets/maintain the standard.
ing Activities Information Technology
H e a v e n D r i v e n B u s i n e s s P l a n | 18
• Create the website for the convenience of the customers for information of the range of products. • Also setting up the production system for the implementation of delivering condoms.
Total Quality Management (TQM) Total quality management is the worldwide system that is widely used by many companies around the world. So we will apply this system to our products in order to manage the whole system of our company to be more effective and reliable for all customers so that we can make sure we provide our customers with high quality condoms sold. Our company will determine the core of this system from the top management level to the bottom in order to make the system effective and reliable for the customers. Moreover, we implements the Total Quality Management basing on the three important bases which are 1. Continuous improvement • Using the quality control process by improving the process of producing the condoms since the beginning stage to the final stage. 2. Employee involvement • Allow all employees to participate in the TQM system by improving their morale. 3. Customer satisfaction • Focusing on both packaging and quality of condoms in order to decrease the defects finished goods as much as possible. To create better customer satisfaction on our condoms.
Quality • Heaven’s driven is the distributor of new types of condom so we will create and design new innovative products and then order them through the main five condom manufacturer in Thailand which are Sure tech company, Thai
H e a v e n D r i v e n B u s i n e s s P l a n | 19
Nippon Rubber Industry company, Thai High Gene Product company, Siam Ogamoto company and SSL manufacturing (Thailand) company. • Furthermore, we have deal with these companies which point out that there are six main the process of condom production which are: 1. Compounding 2. Dipping 3. Tumbling 4. Electronic Testing 5. Rolling and Packaging 6. Quality Control These processes will certainly control the quality of production since filtering raw materials then controlling quality during production until checking the finished product for defection. • As a result of the best standard that Heaven Driven will get from these companies is that they will lead to the high standard process of making each condom perfectly offered to the customers. • Since we perceive that these companies are the specialists in producing condom and they maintain their reputation for long time, so we can assure that our products which are produced by these companies certainly have high standard and perfect quality.
TQM Procedures Diagram
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Cost • In order to compete successfully, we pay attention on taking care of customer satisfaction as a top priority in business operations. To achieve it, one key success we must concentrate on is costs efficiency. • At the early period of new brand introduction, it is just stage that a lot of costs are committed such as advertising, promotion, defected condom and etc. In addition, it is necessary to possess precise information on costs. We therefore use target cost which this method gives precise information on costs. • Our main strategy is “do it right the first time”. It is cheaper to produce the items correctly the first time, rather than to waste resources producing substandard items. Also, we mainly emphasize on "design and build quality in, rather that trying to inspect and repair it and warranty repairs are eliminated. That result in cost reduction.
Morale • In order to motivate employees to stay with us and to do a good work by making them feel like they are a part of the family within the company. Whereby they would feel comfortable working in the company. Moreover, by providing them with benefits that they deserve and some incentives would also create happiness in working with the company. The incentives include 1) offer bonus for every employee in the company every year, 2) reward some gifts for every employee during celebration of company’s anniversary in order to show them that we appreciate their efforts and good work.
Government Regulations Consumer protection Due to our business is to provide a wide range of condoms; therefore we have to provide it not only with good quality and safety but also its value must be added for the consumers.
Juristic person registration
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In order to operate easier, we would our Heaven Driven Company as a juristic person. This will aid us especially with the financial management such as applying for loan from the bank, payment, etc.
Commercial license Because we are opening a business, we need to apply for the commercial license from the government to operate our business. The application for the commercial license needs to be done within 30 days starting from the day of operation.
Protection of Intellectual Property Rights Trademarks We will our company trademark to identify the origin of a company or to distinguish it from other companies.
Financial Plan Financial Assumption 1. Beginning Working Capital (Cash) 1,000,000 Baht 2. Cost of goods manufactured are paid by Cash50% of Sales 3. Fist-in First-out (FIFO) Inventory System 4. Mark Up: Condom 60% of Cost 5. Depreciation Expense - Straight Line Method 6. The estimated useful life of the assets: Office Equipment 20 Years Furniture & Fixture 10 Years 7. Monthly Expense : General & istrative Employee Benefits 9,000 / month Rental Expense 50,000 / month Insurance Expense 300 / month
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Depreciation Expense 4,474 / month Maintenance Expense 600 / month Office Supplies 1,000 / month Transportation 2,500 / month Telephone 700 / month Other 1,000 / month Utilities Electrical 3,000 / month Marketing Selling & Promotions 5% of Sales Advertising Expense 2% of Sales 8. Interest Rate (Bangkok Bank) 10.375% Annually 9. Income Taxes 30% Annually 10. Annual Growth Rate Year 1 3.0% of Sales Year 2 2.5% of Sales Year 3 1.7% of Sales Year 4 0.8% of Sales Year 5 0.0% of Sales 11. Dividend Payout 30% 12.Loss from operation will be financed by cash from shareholders
H e a v e n D r i v e n B u s i n e s s P l a n | 23
according to the proportion of their investment
Financial Statements 1. 2. 3. 4. 5.
Financial Ratios Capital Budgeting Income Statement Balance Sheet Statement of Cash Flow
Heaven Driven Company Ratios Unit s Measure Short-Term Liquidity
Year 1
Year 2
Year 3
Year 4
Year 5
63.78 %
63.79 %
63.39 %
64.13 %
63.55 %
Operating Efficiency (Asset Management) Tim es Total Assets Turnover 4.72 4.54 Tim es Fixed Assets Turnover 19.81 22.25
4.40
4.08
3.75
25.07
28.31
32.07
37.50 % 11.55 % 7.74% 35.14 % 39.54 %
37.50 % 11.88 % 8.14% 35.81 % 35.81 %
37.50 % 11.64 % 8.15% 33.26 % 33.26 %
37.50 % 11.66 % 8.16% 30.59 % 30.59 %
0.13
0.00
0.00
0.00
7.98
-
-
-
0.23
0.18
0.14
0.12
%
Cash to Current Assets
Operating Profitability %
Gross Profit Margin
% %
Operating Profit Margin Net Profit Margin
%
Returns on Investment
%
Returns on Equity
37.50 % 8.29% 5.31% 25.04 % 32.40 %
Financial Risk (Debt Management) Tim Long-Term Debt to es Equity 0.29 Tim es Equity to Total Debt 3.40 Tim es Fixed Assets to Equity 0.31
The payback period of the Chlorophyll Restaurant is 2.11 years.
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Heaven Driven Company Limited Capital Budgeting Estimates of Construction & Preopening Costs Capital Expenditure Fixed Assets : Officed Equipment Logistic Pickup Inventory Handling Equipment Computer Hardware and Software Photocopier Cash s Office Stationary Other Total Officed Equipment Furnitures and Fixture Construction and Decoration Cost Air Conditioner Desks and Office Chairs Cabinets Phone Systems Storage System Other Total Furnitures and Fixture Total Fixed Assets Current Assets : Prepaid Rent Working Capital (Cash) Total Current Assets Pre-Opening Cost Construction Rental Deposit Rental for Construction Period (1 month) Legal fees License of running a Condom Business Trademark Registration Marketing Advertising
Amount
Total(Baht)
200,000 2,500 80,000 16,900 20,000 3,000 7,000 329,400 250,000 52,500 36,000 4,200 6,500 22,000 1,000 372,200 ฿701,600 50,000 1,000,000 ฿1,050,000
80,000 30,000
110,000
10,000 5,500
15,500
50,000
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Public Relations Openning Parties Personnel Business Management Employee Training Total Pre-Opening Expense Total Initial Capital Heaven's Driven Capital Finance by Long-term Debt
40,000 25,000
115,000
90,000 50,000
140,000 ฿380,500 ฿2,132,100
1,248,000 ฿884,100
Heaven Driven Company Limited Income Statement For the Year Ended January 31 (in Baht)
Sales Cost of Sales Gross Profit Operating Expenses: General & istrative: Salaries & Wages Employee Benefits Rental Expense Insurance Expense Depreciation Expense Maintenance Expense Office Supplies Transportation Telephone Other Marketing Expenses: Selling & Promotions Advertising Expense Utilities: Electrical Pre-Opening Expenses Total Expenses Earnings Before Interest & Taxes Interest Expense Earnings Before Taxes
Year 1
Year 2
Year 3
Year 4
฿12,835,24
฿13,220,3
฿13,550,8
฿13,781,1
฿13,891,4
Year 5
6 8,022,029 4,813,217
03 8,262,690 4,957,614
11 8,469,257 5,081,554
75 8,613,234 5,167,941
24 8,682,140 5,209,284
1,656,000 108,000 600,000 3,600 53,690 7,200 1,000 2,500 700 1,000
1,692,000 108,000 600,000 3,600 53,690 7,200 1,000 2,500 700 1,000
1,710,000 108,000 600,000 3,600 53,690 7,200 1,000 2,500 700 1,000
1,785,000 108,000 600,000 3,600 53,690 7,200 1,000 2,500 700 1,000
1,804,000 108,000 600,000 3,600 53,690 7,200 1,000 2,500 700 1,000
641,762 256,705
661,015 264,406
677,541 271,016
689,059 275,623
694,571 277,828
36,000
36,000
36,000
36,000
36,000
380,500 3,748,657
3,431,111
3,472,247
3,563,372
3,590,090
1,064,560 91,725
1,526,503 64,114
1,609,307 33,638
1,604,568
1,619,194
972,835
1,462,389
1,575,669
1,604,568
1,619,194
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Taxes @ 30% Net Income/ (Loss)
291,850 ฿680,984
438,717
472,701
481,370
485,758
฿1,023,67
฿1,102,96
฿1,123,19
฿1,133,43
2
9
8
6
Heaven Driven Company Limited Balance Sheet As of January 31 (in Baht)
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Heaven Driven Company Limited Statement of Cash Flows
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For the Year Ended January 31 (in Baht) Year 1
Year 2
Year 3
Year 4
Year 5
฿1,023,6
฿1,102,9
฿1,123,1
฿1,133,4
53,690 (750,397 )
72 53,690
69 53,690
(89,285)
(15,723)
988,077
(90,253) 1,066,40 6
98 53,690 (106,874 ) 1,070,01 4
36 53,690 (155,954 ) 1,031,17 2
Cash Flows from Operations: Net Income Depreciation Expense Increase in Inventory Total Cash Flows from Operations Cash Flows from Investing: Change in Office Equipment Change in Furniture and Fixture Total Cash Flows from Investing Cash Flows from Financing: Change in Long-term Debt Change in Capital Cash Dividends Cash from Shareholders Total Cash Flows from Financing Net Change in Cash Balance Add : Beginning Cash Balance Ending Cash Balance
฿680,984
(329,400 ) (372,200 ) (701,600 ) (266,134 ) 0 0 173,004 (93,130) (810,452 ) 2,132,10 0 ฿1,321,6 48
0
0
0
0
0
0
0
0
0
0
0
0
(293,745 ) 0 (536,773 ) 0 (830,518 )
(324,221 ) 0 (611,518 ) 0 (935,739 )
0 (826,216 ) 0 (826,216 )
0 (805,700 ) 0 (805,700 )
157,559 1,321,64 8 ฿1,479,2 07
130,666 1,479,20 7 ฿1,609,8 73
243,798 1,609,87 3 ฿1,853,6 71
225,472 1,853,67 1 ฿2,079,1 43
Financing Chlorophyll Restaurant has total investment of 2,132,100 baht. Out of this amount, we are using capital of 1,248,000 baht and finance the rest of 884,100 baht by taking a loan from Bangkok Bank which we are estimated to borrow at the ceiling interest rate of 10.375% (MRR 6.375% + 4%)
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The long-term debt of 884,100 baht is to be repaid through an installment plan which we would be able to pay of the amount within 3 years as following table;
Year 1 2 3
Beginnin g Balance ฿884,100. 00 617,966.2 7 324,221.1 6
Principal Payment
Interest Payment
Total Payment
Ending Principal
฿266,133.
฿91,725.3
฿357,859.
฿617,966.
73 293,745.1 1 324,221.1 6
8
11 357,859.1 1 357,859.1 1
27 324,221.1 6
64,114.00 33,637.95
0.00
Conclusion The indicator of Heaven Driven’s accomplishment is the revolutionary range of condoms that targeting on men, particularly teenagers and providing softer and much more flexible as they are clinically proven to enhance sensation and combine the strength of latex with the sensitivity of ultra-thin condoms. In short, it feels like the closest thing to wearing nothing. Moreover, we are launching “Gimme More” which is considered to be the ultimate selection of Heaven Driven’s condoms with intense and extra pleasure ribbed offering sensations which are unique and perfect for both partners. In the near future, we also plan that we will organize a ‘Condom Fashion Show by Heaven Driven’ which allows university students to demonstrate their creativity using our products to design the clothes. The objectives of this event are to make people becoming aware of safe-sex, to entertain and fill them with related knowledge, and to promote our products as well. Heaven Driven is also provides an easy access to information about the products which is our location and the website that we created for the convenience of our customers.
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Based on our financial estimation, we are generating the net profit in the first year with the payback period of approximately 2 years and 1 month which is quite good considering having to pay off the long-term debt at the same time whereby this debt would be paid off with in 3 years. Therefore, based of our information gathered, researches, planning, and analysis, we strongly believe that “Heaven Driven” is a potentially successful business.
Appendices Appendix 1: Condom Information Appendix 2: Research on Condom Use Appendix 3: Heaven Driven’s Brand Appendix 4: Sample of Heaven Driven Webpage Appendix 5: Graphical form of Three Financial Ratios
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Appendices Appendix 1: Condom Information (The article from TeensHealth) What Is It? Condoms are a barrier method of contraception. There are male condoms and female condoms. A male condom is a thin sheath (usually made of latex, a type of rubber) that is worn on the penis. A female condom is a polyurethane sheath with a flexible ring at either end. One end is closed and inserted into the vagina; the other end is open and the ring sits outside the opening of the vagina. The male condom, sometimes called a "rubber" or "prophylactic," is far more commonly used.
How Does It Work? Condoms work by keeping semen (the fluid that contains sperm) from entering the vagina. The male condom is placed on
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a guy's penis when it becomes erect. It is unrolled all the way to the base of the penis while holding the tip of the condom to leave some extra room at the end. This creates a space for semen after ejaculation and makes it less likely that the condom will break. After the guy ejaculates, he should hold the condom at the base of the penis as he pulls out of the vagina. He must do this while the penis is still erect to prevent the condom from slipping off when he gets soft. If this happens, sperm could enter the vagina.
Condom Precautions Once a condom is used, it cannot be reused. A new condom should be used each time you have sex — and it must be used from start to finish every time you have sex to prevent pregnancy and sexually transmitted diseases (STDs). Never use oil-based lubricants such as mineral oil, petroleum jelly, or baby oil with condoms because these substances can break down the rubber. A used condom should be thrown in the garbage, not down the toilet. And if a condom ever seems dry, sticky, or stiff when it comes out of the package, or if it is past its expiration date, throw it away and use a new one. It's a good idea to have several condoms on hand in case there is a problem with one. It's best to store unused condoms in a cool, dry place.
How Well Does It Work? Over the course of a year, 15 out of 100 typical couples who rely on male condoms alone to prevent pregnancy will have an accidental pregnancy. The use of the female condom is a little less reliable and 21 out of 100 couples will have an unintended pregnancy. Of course, these are average figures and the chance of getting pregnant depends on whether you use condoms correctly every time you have sex. The most common reason that condoms "fail" is that the couple fails to use one at all. Still, it is possible for a condom to break or slip during intercourse. Condoms can also be damaged by things like fingernails and body piercings.
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Experts used to think that using spermicide with a condom would decrease the pregnancy rate as well as help fight against STIs. However, more recent information indicates that this is not necessarily true and spermicide does not help make condoms more effective. In general, how well each type of birth control method works depends on a lot of things. One factor is whether the method chosen is convenient — and whether the person re to use it correctly all the time.
Protection Against STIs Most male condoms are made of latex. Those made of lambskin may offer less protection against some STIs, including HIV/AIDS, so use of latex condoms is recommended. For people who may have an allergic skin reaction to latex, both male and female condoms made of polyurethane are available. When properly used, latex and polyurethane condoms are effective against most STIs. Condoms do not protect against infections spread from sores on the skin not covered by a condom (such as the base of the penis or scrotum). For those having sex, condoms must always be used to protect against STIs even when using another method of birth control. Abstinence (not having sex) is the only method that always prevents pregnancy and STIs.
Possible Side Effects Most men and women have no problems using condoms. Side effects that can occasionally occur include: • •
Allergy to latex condoms. Irritation of the penis or the vagina from spermicides or lubricants that some condoms are treated with.
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ADVANTAGES
•
• Condoms may help men who have trouble keeping an erection, and may help prolong the erection. They protect against pregnancy and sexually transmitted diseases.
DISADVANTAGES • A few men cannot keep an erection after putting on a condom. • Allergic reactions to latex condoms are rare, but they do occur. (Changing to condoms made of polyurethane or animal membranes may help.) • Friction of the condom may reduce stimulation of the clitorus and lubrication, making intercourse less enjoyable or even uncomfortable. (Lubricated condoms may reduce this problem.) • Intercourse also may be less pleasurable because the man must pull out his penis right after ejaculation. • The woman is not aware of warm fluid entering her body (important to some women, not to others).
Who Uses It? Couples who are responsible enough to stop and put a condom on each time before sex and people who want protection against STIs use condoms. Because condoms are the only method of birth control currently available for men, they allow the guy to take responsibility for birth control and STI protection. Condoms are also a good choice for people who do not have a lot of money to spend on birth control.
How Do You Get It? Condoms are available without a prescription and are sold in drugstores, supermarkets, and even vending machines (in some
H e a v e n D r i v e n B u s i n e s s P l a n | 35
stores, they're in the "Family Planning" aisle). Condoms come in different sizes, textures, and colors.
How Much Does It Cost? Condoms are the least expensive and most available method of birth control — other than abstinence, of course. Male condoms cost about ฿20 to ฿50 each and are less expensive when they are bought in boxes that contain several condoms.
IMPORTANT TIPS • Make sure condoms are available and convenient. If no condoms are handy at the time of a sexual encounter, you may be tempted to have intercourse without one. • Carefully withdraw the penis right after ejaculation so that semen cannot leak out of the condom as the erection is lost. • Use each condom only once. • Do not carry condoms in your wallet for long periods of time. Replace them every once in a while. Friction from opening and closing your wallet and from walking (if you carry your wallet in your pocket) can lead to tiny holes in the condom. Nevertheless, it is better to use a condom that has been in your wallet for a long time than to not use one at all. • Don't use a condom that is brittle, sticky, or discolored. These are signs of age, and old condoms are more likely to break. • If a condom package is damaged, don't use the condom because it also may be damaged. • Do not use a petroleum-based substance such as Vaseline as a lubricant. These substances break down latex, the material in some condoms. • If you feel a condom break during intercourse, stop right away and put on a new one. , ejaculation does not have to occur for a pregnancy to result (pre-ejaculatory fluids can contain active sperm), or for a disease to be transmitted. • If ejaculation occurs with a broken condom, insert a spermicidal foam or jelly to help reduce the risk of
H e a v e n D r i v e n B u s i n e s s P l a n | 36
pregnancy or ing an STD. You can also your health care provider or pharmacy about emergency contraception ("morning-after pills"). • Store condoms in a cool, dry place away from sunlight and heat.
Appendix 2: Research on Condom Use Condom use is often seen as a tipping point in the success of HIVAIDS education and prevention. This section describes the literature on the effectiveness of condoms in the prevention of HIV and AIDS. Here are the facts, to date: Consistent condom use is the most effective way to reduce exposure to HIV and other sexually transmitted diseases among sexually-active individuals. Two major, international health agencies (World Health Organization and UNAIDS) are standing by recommendations for condom use as a means to prevent transmission of HIV/AIDS and other sexually transmitted disease (STDs). There are no marketed microbicides or vaccines (with the exception of the Hepatitis B vaccine) for the prevention of sexually-transmitted diseases. Latex condoms have demonstrated significant protection against diseases transmitted via penile-vaginal intercourse. STDs studied are: HIV infection, gonorrhea, chlamydial infection, [including gonococcal and chlamydial pelvic inflammatory disease (PID)], syphilis, chancroid, trichomoniasis, genital herpes caused by herpes simplex viruses (HSV) 1 and 2, and genital human papillomavirus (HPV) infection and HPV diseases.
Resistance to Condom Use One of the most controversial issues in prevention education is the varying responses towards use of condoms. The body of literature on the subject points to cultural and religious taboos; psychological implications (such as illusions of safety); views about condom
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effectiveness; increased risk behaviors correlating to promising research on treatment; and issues of male aversion. We shall address these responses below. Condom Use In the United States, where condom availability is pervasive, only 58% of sexually active youth use condoms. Young people give the following reasons why they do not use condoms: a) embarrassment; b) a belief that it may affect sexual performance; c) concerns that a partner may be suspicious if a young man puts on a condom; d) an unrealistic optimism in one's personal risk of contracting HIV and other STDs. The reason for unrealistic optimism may be due to several factors, not the least of which is a sense that by underestimating one's risk, a young man or woman can reduce the anxiety. It may seem to be counter-intuitive at first, but the greater the anxiety the young people feel, some studies show, the less chance there is that they will use a condom, for they fight fear by building up a psychological wall of protection. Such denial of vulnerability is not uncommon; many populations avoid uncomfortable emotions associated with health problems, an issue that is surely exacerbated in settings where health care options and treatment facilities are limited. In developed countries, the introduction of more sophisticated drug therapies in HIV Positive treatment may be contributing to a rise of infections and risk-taking behaviors. Young people may rationalize that AIDS is treatable. Role models (movie stars and sports figures) have engaged in a public relations campaign to restore pride and dignity to HIVinfected people ("I am Positive"). While such a campaign may be essential to ensure civil rights and active participation in society, an unintended consequence may be the elevation of one's HIV-Positive diagnosis as a status symbol. In Thailand, only about 25 percent of young men report using condoms when engaging in casual or risky sex, often because they
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do not view sex with other young people as risky. While young people were aware of the risks of HIV, they often lacked access to life-skills training and services that would help them translate knowledge into behavioural change. They didn't know, for instance, how to negotiate condom use with a reluctant partner. Addressing Resistance to Condom Use – 2 Studies There are several HIV-AIDS programs designed to change behavior. Some focus on facts where little information is available. Others try to infuse frightening messages about HIV-AIDS. Still others integrate the personal elements (showing the effect of knowing someone with AIDS on one's own behavior, for example). Each HIV-AIDS program must be designed with evaluation techniques that use consistently accurate appropriate dependent and independent variables and analyses that can quantify the connection between education programs and changes in behavior. As was shown in the Topic: "Resistance to Condom Use," attempts have been made to reduce feelings of invulnerability so that young people do not engage in unprotected sex. The key is to integrate factual material with personal identification and engagement in order for the lessons to run deep. Two studies have been conducted with young people to determine the clues and strategies for helping them change their behavior. We have chosen to focus on these two approaches to HIV-AIDS education because they integrate personal engagement and good teaching. We stress that the creative presentation of programmatic materials is as important as the factual presentation of materials. In the first approach, researchers focused on whether or not young people really "knew" about a person's HIV status, based upon a look at photographs and that person's brief statement about his/her sexual history. Many students were unable to produce an accurate score of HIV Negative and HIV Positive people. This study was based upon the idea that a student's sudden confrontation with his or her failed perceptions would change behavior. In this case, such a change would result in not relying on appearance and a
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statement from a potential partner. Protection would then take place as a matter of course. It has been suggested that the study using photographs take on longitudinal elements by following the lives of young people pictured in the photographs for several months or years. In this way, several variables can be studied, including: a) a longer term analysis of the staying power of the exercise itself - is it continuing to work? b) a reinforcing of the point, such that subsequent groups of students participating in the photo-identification project could see the deterioration in the lives, over time, of those infected by HIV. A seemingly bright and beautiful face one day then turns into the face of disease. In the second approach, researchers focused on negative health events as a compelling way of demonstrating a willingness to use condoms. In such cases, young people spoke about the STDs contracted. In addition, a 20-minute video was shown. Studies have shown an initial commitment to use protection, though it is not entirely clear whether or not the pressures surrounding participation in the study itself may not have had an effect on young people, who may feel pressured to provide the "appropriate," rather than the truthful, answer. Both approaches were followed up by questionnaires at three and six months asking whether or not the young people had been sexually active in the intervening time and the degree to which they intend to use condoms.
FINDINGS & FOLLOW-UP The intention of both studies is to reduce feelings of invulnerability and increase condom use. Both approaches showed demonstrable effects in reducing feelings of invulnerability and increasing the intention to use condoms. The results of this "stand-alone" intervention may be limited to some degree. The message remains. The teenagers' lack of ability to guess accurately the health of those in the photographs translated into a sense that:
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a) they may be wrong; b) the picture they viewed could, perhaps, one day be of them. Future studies are being tested to overcome obstacles to condom use that extend beyond the perceptions of teenagers - availability in numbers and ease of access, social stigmas, myths about condoms, for example. The post study is as important as the study itself, for the questionnaire itself is explicit about questions directed to young people about their own sexual behavior. These private issues are public insofar as the young people are participating in such a study and the follow-up surveys, which acknowledge their sexual activity. (We do not know what the drop-out rate is to determine the degree to which fear of such questions may have frightened some participants away.) A conclusion that can be made, however (based upon a larger body of research in adolescent psychology) is that threatening or frightening images or programs showing the connection to and consequences of a particular behavior (in this case, unprotected sex) have been marginally effective, but short term. Recent studies have shown success in mitigating cigarette smoking amongst teens by showing dirty lungs, but the effects do not last because such messages are not personalized. Even more, some young people resist such messages as authoritarian and, therefore, go in the opposite direction - toward greater risk taking.
Appendix 3: Heaven Driven’s Brand Product Logo
Heaven Driven
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Product Design
Appendix 4: Sample of www.heavendriven.com website pages
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“Products” page, containing several types and packages of condoms.
H e a v e n D r i v e n B u s i n e s s P l a n | 43
Some Promotion that our company will offer will be put in this webpage, “Promotion”. This page will be updated every time we have
a promotional campaign.
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The “Company Background” is telling the audience a little something about our company with some photo gallery for them to look at.
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“Sex Guide” page is telling the information and methods of how to use condoms. This page would be useful for our customers to make
use of our product.
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“ Us” page is for the audiences or customers to give us some or suggestion so that we can improve ourselves and set a higher standard.
Appendix 5: Graphs showing the Net Profit Margin, Return on Investment, and Return on Equity
Net Profit Margin 10.00%
Percentage
8.00% 6.00% 4.00% 2.00% 0.00% Net Profit Margin
Year 1
Year 2
Year 3
Year 4
Year 5
5.31%
7.74%
8.14%
8.15%
8.16%
Returnson Investment
Percentage
40.00% 30.00% 20.00% 10.00% 0.00%
Year 1
Year 2
Year 3
Year 4
Year 5
Returns on Investment 25.04% 35.14% 35.81% 33.26% 30.59%
Returns on Equity 40.00%
Percentage
30.00% 20.00% 10.00% 0.00%
Year 1
Returns on Equity 32.40%
Year 2
Year 3
Year 4
Year 5
39.54%
35.81%
33.26%
30.59%
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Executive Summary “Heaven Driven” is a newly established small business, primarily involve in providing condoms through a variety of flavors which are suitable for men especially teenagers who enjoy satisfying sex lives while concerning their safety. The range of our condoms includes a kaleidoscope of colors, textures, sizes and tastes in which customers can select the ones that perfect fit with their love-lifestyles. Our products will be first launched in convenient stores, supermarkets, and other retail stores in Bangkok which can be found easily and close to our target customers. The company also plans to expand the business in other provinces in Thailand such as Chiang Mai, Chonburi, Phuket and etc. Furthermore, our company intends to devote a strong to the ‘Poktoong’ campaign which is sponsored by Ministry of Public Health. Since we hope that our contribution can help the country in reducing the rising number of Thai people who are living with HIV/AIDS and preventing them from such life-threatening condition as well. “Heaven Driven” will engage in a subcontract with a manufacturing enterprise to assist the company in supplying condoms. We mainly focus on generating ideas of product design, conducting marketing researches, and modifying products to meet customers’ wants. Our special product is the “Extra Sensitive” which will be introduced to the customers as the thinnest condoms in our latex range while still providing the same high level of reassurance and protection. We expect our business to have a total initial investment of approximately 2 million baht with a payback period of approximately 2 years. Heaven Driven will generate net profit margin about 8.7% on average over five years with return on
Heaven Driven Business Plan | 2
investment approximately 50.8% approximately 62% over five years.
and
return
on
equity
Heaven Driven requires quite a large amount of investment and due to the fact that the business involves with the manufacturing process, raw material is a very important resource in the operation. Besides, marketing efforts would be another driving factor to generate company’s revenue.
Company Profile Heaven Driven Company Limited is a newly funky condom brand which has broken the old design to deliver a new range of condoms packed with cool and funky fun. The company's core business is providing, marketing and developing high quality male condoms that satisfy our customers. The brand represents superior products as a result of advanced manufacturing technology implemented a wide range of technical skills overseas. Our high-quality brand, "Heaven Driven" promises "You can trust Heaven Driven products." We stand behind our products with a complete 100% moneyback guarantee. The distributions can be accessed easily. In addition, we are ready to deliver our products within 24 hrs, after our customers place an order. The shipping, packaging and billing is totally confidential. That is to say we have a duty to fully satisfy our customers, stockholders, employees, our associated companies, and their families throughout our business. We absolutely promise the involving parties progress as a company in order to guarantee their satisfaction. We would like to tell the world that we are extremely proud of the compliments as well as complain on our products and services. There are competitions in this industry in Thailand. Whoever are the competitors, we will do our best effort to achieve customer satisfaction and for our "Heaven Driven" products. Vision
Heaven Driven Business Plan | 3
•
To be the leader of the sex ing company by serving the unlimited happiness and especially perfect security that have done by new type of condoms and other products in Thailand.
Mission • Promising to provide the new type of condoms that focus on Thai people sense and with Thai taste. • Ensuring all customers that our products can protect any types of diseases which can be infected through sex for 100 % absolutely. • Attempting to people in society to concern about having secured sex. Goal • To encourage Heaven driven to be a well-known superior sex products within 2 years. Product Design • Overall Since Heaven Driven is providing condoms, our products will look unique, perfect, and, colorful but enduring and comfortable to fit as well. In addition, our different flared shapes make them easier to put on and more natural and sensitive when they use our condoms. • Decoration • Our condoms will be extra thin with varying sizes, lengths, and widths which give a "closer" fit. • Also adding some eye-catching features that make the products look attractive and stimulate customers to purchase. • Together with the containers which are colorful and provide the methods of using condoms. Open Hours • Heaven Driven Company Limited Head Office hours is 8:30am – 6:00pm. • Our shops will operate 24 hours.
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• For the operation hours of those agents like convenience stores, supermarket, and other retail stores are subjected on their normal time basis.
Marketing Plan Marketing Objectives • •
To introduce and launch our products in Bangkok within 2010. To distribute our products to other provinces in Thailand concentrating in tourist destinations such as, Chiang Mai, Chonburi, and Phuket in 2012.
Marketing Mix Product: As Heaven Driven brand condoms being made from quality, it helps reduce the risk of pregnancy and sexual diseases. Our brand provides wide range of condom design, an advanced material so strong, durable, silky soft condom and condom with lube for a natural experience. Also, it can be made much thinner with special
Heaven Driven Business Plan | 5
flavors such as mint, aloe, green tea, orange, chocolate candy, liquor and etc. Our brand condoms are designed various size; XL, L, M and free size. Price: “Heaven Driven” prices on condoms are really indifferent compared to other places. The price for a box of three ordinary condoms is approximately 30 Baht, The price for a box of three condoms with flavors is approximately 40 Baht. The price vary depend on size, design and lube. Place: The location of our head office is on 19th floor, 23 Sukhumvit 63, Klongton Nua, Wattana, Bangkok 10110, Thailand and our store is right there next to the building which will be near our main target markets with a plus of the convenience in transportation as we are also near the Ekamai BTS Station. Our products can also be found in many Thai drug stores, small retailers and online stores. Promotion: The difference between the price on the box of three and the box of one dozen equals for a 25% discount. When purchased in a package of two dozen, the price drops more than 40%. For Valentine campaign, we give “buy one box get one free” to increase use of condoms and help to lower infection rates (HIV).
Target Market Segmentation The market can be segmented into major and minor target groups which are; Major target market: - Male and Female - 15 – 50 years olds - Middle to high income - Health Centre and Hospital - Food and Drug istration Minor target market: - Customers who prefer to have safe sex - Sexually active teenagers - Night club people - Nightlife travelers
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Competition Profile (SWOT Analysis and Fives Force Analysis) SWOT Analysis S – Strength • • • • • • •
Innovation in product features and quality Availability of raw materials High product safety Almost essential for sexual activity Available in many sizes, colors, and flavor to attract more consumers Increasing awareness and increasing of sales Using condom to avoid HIV
W – Weakness • • • • • •
The company is the new comer in the industry. Therefore, it affects the company image and credit. Unable to directly Surrogate ment for condom Social, culture, and traditional hindrances Not 100% completely guarantee on pregnancy control Easy for duplication in product designs
O – Opportunities •
• • • •
Rapidly advancing technology makes manufacturing more efficient, less costly and more effort can be placed on distribution There is an increase in number of persons who enjoy the night life. People concern more about their health and safety. Many shops are available for condom to be one of their products. The Ministry of Public Health s and encourages more on “Poktoong” campaign. This means they encourage people with use condom.
T – Threat • • • •
Lots of competitors in the market. Society – the Roman Catholic Church generally opposes condom usage. Masturbation and the using of sex toys Trade barriers – government restriction on advertising
Heaven Driven Business Plan | 7
•
Limitation of brand loyalty
Fives Force Analysis Substitute products
Bargaining power of suppliers
1.
2.
3.
4.
5.
Threats of new entrance
Bargaining power of suppliers
Heaven Driven Business Plan | 8
•
In order to enter into the industry of condom business, you do not need much of capital or the initial investment so the cost of entry is quite low. Also, in Thailand, there is no law or regulation that prohibits the investment in this business. Consequently, there is relatively low barrier of entry into this type of business.
Market Strategy Advertising Method We are offering free product samples in the advertising method in the beginning stage of launching our products. In addition, we select the “World Aids Day” and other related events as the appropriate times for introducing our products and showing our dedicated s for the “Poktoong” campaign as well. Since, we are hoping that these events would definitely give us an opportunity to attract people and probably make our target market aware of our products. Consequently, they may be interested in purchasing condoms. The next step is to place ment in newspaper, magazine, spot radio, and through guideline websites since we also have our own website for customers to search for information of the products if they are interested. Moreover, after-sales services are available such as online live chat for the customers to comment of the product quality and online guidelines regarding sex and condom usage. In addition, the product will be ed with the physician prescription (Dr). We are also planning to distribute our products to other provinces as well; the same advertising method would also be used at the opening stage of the expansion of the products.
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Timetable for Promotional Campaigns (January, 2010 – January, 2011) Ta sk 1 2 3 4 5
6 7 8
9
10
11
12
13
14
15
Person Responsible Field Trip for major dealers (January 18-22) Grand Opening (February 14) Offering free product samples (February 14: Valentine's Day) Placing ment through various sources Offering free product samples (April 10-18: Songkran Festival) Sponsoring TV programmes (Channel [V] Thailand) Launching 'Gimme More' (May 1) Discount promotion for package purchasing (June 1-30) University Road Show: 'Sexual and Reproductive Health Education Program' (July 19-30) Launching 'Break The Ice' (August 1) Offering free product samples (August 12, Ministry of Public Health and AIDS Thai Organization) Sponsoring TV programmes (MTV Thailand) Offering free product samples (October 30-November 5: Loy Krathong Festival) Launching 'Radar' (November 1) Offering free product samples (December 24-January 2: Christmas Eve & New Year Festival)
Ja n
Fe b
Ma r
Ap r
Ma y
Month Ju Ju Au n l g
Se p
Oc t
No v
De c
Ja n
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16
Rewarding customers as the celebration for the first anniversary
E-Commerce For online marketing, customers can visit our website by clicking banner ads in many popular websites such as Sanook.com, MThai.com, Facebook.com, and etc. or entering the website directly at www.heavendriven.com. The website will be providing the company background, our products, promotions, location, shop online, live chat, and us. • Company Background: shows the background of Heaven Driven Company Limited. • Our products: provides both names and prices of all products that are currently launching in the market. • Promotions: shows all promotions of our company to potential customers. • Location: shows the clear map and address of our head office and our store. • Shop Online: allow customers to place the orders via our websites. • Live Chat: offers after-sales services of answering customers’ enquiries and allows them to give comments. • us: will provide for visitors to make some comments or to ask some questions about our product. As we know that the color of Heaven is “White”. So we will use blue and white as main colors for the website. The cool color tones (blue, white) on our website not only can create relaxing feeling to the site visitors but also means suggests sky (simple life, paradise), clearness, stability, restfulness, and pureness.
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Management Plan Organization Chart
Management Summary 1. Management Role • Strategic planning and managing the resources of the company as a whole.
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• Also responsible for the operation of distribution with the assistant of General Manager. 2. Marketing Role • Generating and executing marketing plan of the business and public relations. o Creating new campaigns and promotions to attract the customers. o Creating the brand associate and brand awareness to the customers in order to gain the brand equity such as brand loyalty.
3. Finance & ing Role • Responsible for financial management and planning. Control all about the revenues and expenses. • In addition, the person taking the role will also be an ant responsible for providing, organizing, and managing financial statements in the company.
Hiring Position 1. General Manager (1 position, experiences required) • The general manager will be controlling in almost every activities that occur in the company so the general manager must have experience in running a business. • Responsibilities o Controlling most of the activities in the company. o Advising subordinates in order to improve the quality of their works. 2. Inventory Controller (1 position, experiences required) • The inventory controller will be performing activities to monitor and maintain inventory control of merchandise so it is very important for our inventory controller to have experience in this field. • Responsibilities
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3.
4.
5.
6.
7.
o Evaluating inventory levels and notifies vendor when reorders are necessary. o Performing receiving, stocking, distributing, and packing in addition to inventory control. istrative Officer (1 position) • Responsibilities o Assembling and analyzing fairly complex information or data and describing results in a written report. o Supplying istrative services to the company and operating under general supervision. Clerk (1 position) • Responsibilities o Performing routine office or clerical tasks o Sorting and distributing mail, photocopying, filing, posting or proofing data, or answering telephone calls and recorded messages. Sales Representatives (4 positions) • There will be four Sales representatives in our company. • Responsibilities o Conducting sales calls, schedules promotional work and track sales activities. o Quoting prices, prepares proposals and provides information regarding of sales and delivery dates. o Gathering data on marketing trends, competitive products and pricing. Store Worker (1 position) • Responsibilities o Maintaining receipts, records, and withdrawals of merchandise inventory and receiving and unpacks materials and supplies. o Checking supplies and reporting when stock is low and damages and discrepancies for ing, reimbursement and record-keeping purposes. o Also interacting with customers and provide information to customers. Cashier (1 position, with some ing background)
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• Cashier will be working in the store area. She should have some of the ing background and should have accuracy in receiving payments and giving changes. • Responsibilities o Responsible of the petty cash inside the store. o Also be an assistant for ant. 8. Delivery Driver (3 positions) • Responsibilities o Driving to and from delivery destinations and delivering cargo to customers within a local area. o Interacting with customers to obtain payment, signatures and giving receipts. 9. Outsourced Housekeeper (1 position) • The housekeeper will be outsourced and perform cleaning duties to maintain our office in a clean and orderly manner.
3 Year Personnel Plan
Positions:
Office Personnel: Owners: - Management - Marketing & PR - Finance & ing Employees: - General Manager - istrative Officer - Clerk - Sales
Salaries & Wages / Month Year 1 Year 2 Year 3 No. No. No. of of of Amount Amount Amount Peop Peop Peop le le le
1 1
฿14,000
฿14,000
14,000
1 1
฿14,000
14,000
1 1
1
14,000
1
14,000
1
14,000
1
12,000
1
12,500
1
13,000
1 1 4
8,000 7,000 7,500
1 1 4
8,500 7,000 8,000
1 1 4
8,500 7,000 8,000
14,000
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Representatives Store Personnel: - Inventory Controller - Store Worker - Cashier - Delivery Drivers Outsourcing: - Housekeeper Total No. of People Total Payroll per Month Total Payroll per Year
1 1 1 3
10,000 6,000 5,000 6,000
1 1 1 3
10,000 6,000 5,000 6,000
1
1
1
17
17
17 ฿141,00
฿142,50
0 ฿1,656, 000
0 ฿1,692,0 00
0 ฿1,710,0 00
Office 1. 1 Couch 2. 7 Pedestal desks and 11 chairs • 3 Workstations • 8 Letter trays, 7 Tidies, and, 8 Mag files • 20 pens and 12 pencils • 2 Perforators, 3 staplers, and, 2 scissors 3. 1 Photocopy machine 4. 4 Desktop computers and 4 laptops 5. 10 Filing cabinets and 5 document shelves 6. 40 Ring binders 7. 2 Telephones and 6 telephone lines 8. 1 Meeting room • 1 Meeting table and 6 chairs • 1 Whiteboard and 2 whiteboard marker
Store • • 2.
11,000 6,000 5,000 6,000
฿138,00
Facilities and Utilities
1.
1 1 1 3
1 Cashier counter 1 Cashier machine 2 pens 2 Product shelves
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3.
1 Telephones
Value Chain Management Primary Activities: 1.
Inbound logistics • Heaven Driven will select high quality raw materials from the reliable source and order a manufacturing enterprise to produce condoms on behalf of us which always provide the higher quality of the products. • We also use the Make-to-stock process which means we will stock the raw materials such as plastics and latex at the right amount (according to the forecasting). Therefore, our condoms are always available for the customers to purchase. Moreover, we can save more cost. • According to the Make-to-stock process, we will deliver the products periodically like once a week or once a month. 2. Operations • After receiving the unfinished product from the manufacturer, the company will randomly test the quality of the product which will take place in the laboratory room. • After that, the sales and marketing department will create the strategy to distribute the product to all customers, such as, how to launch/introduce the new product to attract the most customers. • The product will be sent to repack in a new package which will be more attractive to be ready to sales. • Under the planning, the financial department must provide the information about sales and marketing budget to sales and marketing department in order to let them know how much budget they have to deal with. • Then, launch the product to the market with the grand event to attract and customer and to build brand image. 3. Outbound logistics • As the company manages our own distribution, delivery is one of the most important mechanisms to the company. The delivery must always be on time in order to reach the
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standard. The product will be carried by truck to the final customer such as to the hospital, the club. • For the retailer, there will be a small truck response to the delivery in order to separate the work and to reduce the degree of confusion in working to the workers. 4. Marketing and Sales • For advertising, Heaven Driven will promote the products by using newspaper, magazine, spot radio, and through guideline websites. • For promotion, we will offer free sample products or run promotional campaigns on every special occasion such as Valentine’s Day, Songkran Festival, Loy Krathong Festival, Christmas holiday, and New Year. • The marketing and sales department will create the marketing plan for the products. (see Marketing and Sales part) 5. Service • Delivery time to the customer must be exactly no delay with the full guarantee for anti-protection of the product. • After sales service, as the company create the website for the customer not only to give comment to the company, but also the website provides the useful information about the sexual behavior and how to use the product correctly to achieve the high product benefit, the company has to provide valuable information for the customer in order to maintain the order. • All sales representatives are required to arrange the “meet and greet” with the customer in order to maintain the relationship and also create a good-will to the company toward both existing and new customer. • The General Manager requires arranging “meet and greet” to the main customer such as the hospital, to inform the customer about the company operation in order for the customer to ensure that our product meets/maintain the standard.
ing Activities Information Technology
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• Create the website for the convenience of the customers for information of the range of products. • Also setting up the production system for the implementation of delivering condoms.
Total Quality Management (TQM) Total quality management is the worldwide system that is widely used by many companies around the world. So we will apply this system to our products in order to manage the whole system of our company to be more effective and reliable for all customers so that we can make sure we provide our customers with high quality condoms sold. Our company will determine the core of this system from the top management level to the bottom in order to make the system effective and reliable for the customers. Moreover, we implements the Total Quality Management basing on the three important bases which are 1. Continuous improvement • Using the quality control process by improving the process of producing the condoms since the beginning stage to the final stage. 2. Employee involvement • Allow all employees to participate in the TQM system by improving their morale. 3. Customer satisfaction • Focusing on both packaging and quality of condoms in order to decrease the defects finished goods as much as possible. To create better customer satisfaction on our condoms.
Quality • Heaven’s driven is the distributor of new types of condom so we will create and design new innovative products and then order them through the main five condom manufacturer in Thailand which are Sure tech company, Thai
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Nippon Rubber Industry company, Thai High Gene Product company, Siam Ogamoto company and SSL manufacturing (Thailand) company. • Furthermore, we have deal with these companies which point out that there are six main the process of condom production which are: 1. Compounding 2. Dipping 3. Tumbling 4. Electronic Testing 5. Rolling and Packaging 6. Quality Control These processes will certainly control the quality of production since filtering raw materials then controlling quality during production until checking the finished product for defection. • As a result of the best standard that Heaven Driven will get from these companies is that they will lead to the high standard process of making each condom perfectly offered to the customers. • Since we perceive that these companies are the specialists in producing condom and they maintain their reputation for long time, so we can assure that our products which are produced by these companies certainly have high standard and perfect quality.
TQM Procedures Diagram
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Cost • In order to compete successfully, we pay attention on taking care of customer satisfaction as a top priority in business operations. To achieve it, one key success we must concentrate on is costs efficiency. • At the early period of new brand introduction, it is just stage that a lot of costs are committed such as advertising, promotion, defected condom and etc. In addition, it is necessary to possess precise information on costs. We therefore use target cost which this method gives precise information on costs. • Our main strategy is “do it right the first time”. It is cheaper to produce the items correctly the first time, rather than to waste resources producing substandard items. Also, we mainly emphasize on "design and build quality in, rather that trying to inspect and repair it and warranty repairs are eliminated. That result in cost reduction.
Morale • In order to motivate employees to stay with us and to do a good work by making them feel like they are a part of the family within the company. Whereby they would feel comfortable working in the company. Moreover, by providing them with benefits that they deserve and some incentives would also create happiness in working with the company. The incentives include 1) offer bonus for every employee in the company every year, 2) reward some gifts for every employee during celebration of company’s anniversary in order to show them that we appreciate their efforts and good work.
Government Regulations Consumer protection Due to our business is to provide a wide range of condoms; therefore we have to provide it not only with good quality and safety but also its value must be added for the consumers.
Juristic person registration
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In order to operate easier, we would our Heaven Driven Company as a juristic person. This will aid us especially with the financial management such as applying for loan from the bank, payment, etc.
Commercial license Because we are opening a business, we need to apply for the commercial license from the government to operate our business. The application for the commercial license needs to be done within 30 days starting from the day of operation.
Protection of Intellectual Property Rights Trademarks We will our company trademark to identify the origin of a company or to distinguish it from other companies.
Financial Plan Financial Assumption 1. Beginning Working Capital (Cash) 1,000,000 Baht 2. Cost of goods manufactured are paid by Cash50% of Sales 3. Fist-in First-out (FIFO) Inventory System 4. Mark Up: Condom 60% of Cost 5. Depreciation Expense - Straight Line Method 6. The estimated useful life of the assets: Office Equipment 20 Years Furniture & Fixture 10 Years 7. Monthly Expense : General & istrative Employee Benefits 9,000 / month Rental Expense 50,000 / month Insurance Expense 300 / month
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Depreciation Expense 4,474 / month Maintenance Expense 600 / month Office Supplies 1,000 / month Transportation 2,500 / month Telephone 700 / month Other 1,000 / month Utilities Electrical 3,000 / month Marketing Selling & Promotions 5% of Sales Advertising Expense 2% of Sales 8. Interest Rate (Bangkok Bank) 10.375% Annually 9. Income Taxes 30% Annually 10. Annual Growth Rate Year 1 3.0% of Sales Year 2 2.5% of Sales Year 3 1.7% of Sales Year 4 0.8% of Sales Year 5 0.0% of Sales 11. Dividend Payout 30% 12.Loss from operation will be financed by cash from shareholders
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according to the proportion of their investment
Financial Statements 1. 2. 3. 4. 5.
Financial Ratios Capital Budgeting Income Statement Balance Sheet Statement of Cash Flow
Heaven Driven Company Ratios Unit s Measure Short-Term Liquidity
Year 1
Year 2
Year 3
Year 4
Year 5
63.78 %
63.79 %
63.39 %
64.13 %
63.55 %
Operating Efficiency (Asset Management) Tim es Total Assets Turnover 4.72 4.54 Tim es Fixed Assets Turnover 19.81 22.25
4.40
4.08
3.75
25.07
28.31
32.07
37.50 % 11.55 % 7.74% 35.14 % 39.54 %
37.50 % 11.88 % 8.14% 35.81 % 35.81 %
37.50 % 11.64 % 8.15% 33.26 % 33.26 %
37.50 % 11.66 % 8.16% 30.59 % 30.59 %
0.13
0.00
0.00
0.00
7.98
-
-
-
0.23
0.18
0.14
0.12
%
Cash to Current Assets
Operating Profitability %
Gross Profit Margin
% %
Operating Profit Margin Net Profit Margin
%
Returns on Investment
%
Returns on Equity
37.50 % 8.29% 5.31% 25.04 % 32.40 %
Financial Risk (Debt Management) Tim Long-Term Debt to es Equity 0.29 Tim es Equity to Total Debt 3.40 Tim es Fixed Assets to Equity 0.31
The payback period of the Chlorophyll Restaurant is 2.11 years.
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Heaven Driven Company Limited Capital Budgeting Estimates of Construction & Preopening Costs Capital Expenditure Fixed Assets : Officed Equipment Logistic Pickup Inventory Handling Equipment Computer Hardware and Software Photocopier Cash s Office Stationary Other Total Officed Equipment Furnitures and Fixture Construction and Decoration Cost Air Conditioner Desks and Office Chairs Cabinets Phone Systems Storage System Other Total Furnitures and Fixture Total Fixed Assets Current Assets : Prepaid Rent Working Capital (Cash) Total Current Assets Pre-Opening Cost Construction Rental Deposit Rental for Construction Period (1 month) Legal fees License of running a Condom Business Trademark Registration Marketing Advertising
Amount
Total(Baht)
200,000 2,500 80,000 16,900 20,000 3,000 7,000 329,400 250,000 52,500 36,000 4,200 6,500 22,000 1,000 372,200 ฿701,600 50,000 1,000,000 ฿1,050,000
80,000 30,000
110,000
10,000 5,500
15,500
50,000
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Public Relations Openning Parties Personnel Business Management Employee Training Total Pre-Opening Expense Total Initial Capital Heaven's Driven Capital Finance by Long-term Debt
40,000 25,000
115,000
90,000 50,000
140,000 ฿380,500 ฿2,132,100
1,248,000 ฿884,100
Heaven Driven Company Limited Income Statement For the Year Ended January 31 (in Baht)
Sales Cost of Sales Gross Profit Operating Expenses: General & istrative: Salaries & Wages Employee Benefits Rental Expense Insurance Expense Depreciation Expense Maintenance Expense Office Supplies Transportation Telephone Other Marketing Expenses: Selling & Promotions Advertising Expense Utilities: Electrical Pre-Opening Expenses Total Expenses Earnings Before Interest & Taxes Interest Expense Earnings Before Taxes
Year 1
Year 2
Year 3
Year 4
฿12,835,24
฿13,220,3
฿13,550,8
฿13,781,1
฿13,891,4
Year 5
6 8,022,029 4,813,217
03 8,262,690 4,957,614
11 8,469,257 5,081,554
75 8,613,234 5,167,941
24 8,682,140 5,209,284
1,656,000 108,000 600,000 3,600 53,690 7,200 1,000 2,500 700 1,000
1,692,000 108,000 600,000 3,600 53,690 7,200 1,000 2,500 700 1,000
1,710,000 108,000 600,000 3,600 53,690 7,200 1,000 2,500 700 1,000
1,785,000 108,000 600,000 3,600 53,690 7,200 1,000 2,500 700 1,000
1,804,000 108,000 600,000 3,600 53,690 7,200 1,000 2,500 700 1,000
641,762 256,705
661,015 264,406
677,541 271,016
689,059 275,623
694,571 277,828
36,000
36,000
36,000
36,000
36,000
380,500 3,748,657
3,431,111
3,472,247
3,563,372
3,590,090
1,064,560 91,725
1,526,503 64,114
1,609,307 33,638
1,604,568
1,619,194
972,835
1,462,389
1,575,669
1,604,568
1,619,194
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Taxes @ 30% Net Income/ (Loss)
291,850 ฿680,984
438,717
472,701
481,370
485,758
฿1,023,67
฿1,102,96
฿1,123,19
฿1,133,43
2
9
8
6
Heaven Driven Company Limited Balance Sheet As of January 31 (in Baht)
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Heaven Driven Company Limited Statement of Cash Flows
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For the Year Ended January 31 (in Baht) Year 1
Year 2
Year 3
Year 4
Year 5
฿1,023,6
฿1,102,9
฿1,123,1
฿1,133,4
53,690 (750,397 )
72 53,690
69 53,690
(89,285)
(15,723)
988,077
(90,253) 1,066,40 6
98 53,690 (106,874 ) 1,070,01 4
36 53,690 (155,954 ) 1,031,17 2
Cash Flows from Operations: Net Income Depreciation Expense Increase in Inventory Total Cash Flows from Operations Cash Flows from Investing: Change in Office Equipment Change in Furniture and Fixture Total Cash Flows from Investing Cash Flows from Financing: Change in Long-term Debt Change in Capital Cash Dividends Cash from Shareholders Total Cash Flows from Financing Net Change in Cash Balance Add : Beginning Cash Balance Ending Cash Balance
฿680,984
(329,400 ) (372,200 ) (701,600 ) (266,134 ) 0 0 173,004 (93,130) (810,452 ) 2,132,10 0 ฿1,321,6 48
0
0
0
0
0
0
0
0
0
0
0
0
(293,745 ) 0 (536,773 ) 0 (830,518 )
(324,221 ) 0 (611,518 ) 0 (935,739 )
0 (826,216 ) 0 (826,216 )
0 (805,700 ) 0 (805,700 )
157,559 1,321,64 8 ฿1,479,2 07
130,666 1,479,20 7 ฿1,609,8 73
243,798 1,609,87 3 ฿1,853,6 71
225,472 1,853,67 1 ฿2,079,1 43
Financing Chlorophyll Restaurant has total investment of 2,132,100 baht. Out of this amount, we are using capital of 1,248,000 baht and finance the rest of 884,100 baht by taking a loan from Bangkok Bank which we are estimated to borrow at the ceiling interest rate of 10.375% (MRR 6.375% + 4%)
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The long-term debt of 884,100 baht is to be repaid through an installment plan which we would be able to pay of the amount within 3 years as following table;
Year 1 2 3
Beginnin g Balance ฿884,100. 00 617,966.2 7 324,221.1 6
Principal Payment
Interest Payment
Total Payment
Ending Principal
฿266,133.
฿91,725.3
฿357,859.
฿617,966.
73 293,745.1 1 324,221.1 6
8
11 357,859.1 1 357,859.1 1
27 324,221.1 6
64,114.00 33,637.95
0.00
Conclusion The indicator of Heaven Driven’s accomplishment is the revolutionary range of condoms that targeting on men, particularly teenagers and providing softer and much more flexible as they are clinically proven to enhance sensation and combine the strength of latex with the sensitivity of ultra-thin condoms. In short, it feels like the closest thing to wearing nothing. Moreover, we are launching “Gimme More” which is considered to be the ultimate selection of Heaven Driven’s condoms with intense and extra pleasure ribbed offering sensations which are unique and perfect for both partners. In the near future, we also plan that we will organize a ‘Condom Fashion Show by Heaven Driven’ which allows university students to demonstrate their creativity using our products to design the clothes. The objectives of this event are to make people becoming aware of safe-sex, to entertain and fill them with related knowledge, and to promote our products as well. Heaven Driven is also provides an easy access to information about the products which is our location and the website that we created for the convenience of our customers.
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Based on our financial estimation, we are generating the net profit in the first year with the payback period of approximately 2 years and 1 month which is quite good considering having to pay off the long-term debt at the same time whereby this debt would be paid off with in 3 years. Therefore, based of our information gathered, researches, planning, and analysis, we strongly believe that “Heaven Driven” is a potentially successful business.
Appendices Appendix 1: Condom Information Appendix 2: Research on Condom Use Appendix 3: Heaven Driven’s Brand Appendix 4: Sample of Heaven Driven Webpage Appendix 5: Graphical form of Three Financial Ratios
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Appendices Appendix 1: Condom Information (The article from TeensHealth) What Is It? Condoms are a barrier method of contraception. There are male condoms and female condoms. A male condom is a thin sheath (usually made of latex, a type of rubber) that is worn on the penis. A female condom is a polyurethane sheath with a flexible ring at either end. One end is closed and inserted into the vagina; the other end is open and the ring sits outside the opening of the vagina. The male condom, sometimes called a "rubber" or "prophylactic," is far more commonly used.
How Does It Work? Condoms work by keeping semen (the fluid that contains sperm) from entering the vagina. The male condom is placed on
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a guy's penis when it becomes erect. It is unrolled all the way to the base of the penis while holding the tip of the condom to leave some extra room at the end. This creates a space for semen after ejaculation and makes it less likely that the condom will break. After the guy ejaculates, he should hold the condom at the base of the penis as he pulls out of the vagina. He must do this while the penis is still erect to prevent the condom from slipping off when he gets soft. If this happens, sperm could enter the vagina.
Condom Precautions Once a condom is used, it cannot be reused. A new condom should be used each time you have sex — and it must be used from start to finish every time you have sex to prevent pregnancy and sexually transmitted diseases (STDs). Never use oil-based lubricants such as mineral oil, petroleum jelly, or baby oil with condoms because these substances can break down the rubber. A used condom should be thrown in the garbage, not down the toilet. And if a condom ever seems dry, sticky, or stiff when it comes out of the package, or if it is past its expiration date, throw it away and use a new one. It's a good idea to have several condoms on hand in case there is a problem with one. It's best to store unused condoms in a cool, dry place.
How Well Does It Work? Over the course of a year, 15 out of 100 typical couples who rely on male condoms alone to prevent pregnancy will have an accidental pregnancy. The use of the female condom is a little less reliable and 21 out of 100 couples will have an unintended pregnancy. Of course, these are average figures and the chance of getting pregnant depends on whether you use condoms correctly every time you have sex. The most common reason that condoms "fail" is that the couple fails to use one at all. Still, it is possible for a condom to break or slip during intercourse. Condoms can also be damaged by things like fingernails and body piercings.
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Experts used to think that using spermicide with a condom would decrease the pregnancy rate as well as help fight against STIs. However, more recent information indicates that this is not necessarily true and spermicide does not help make condoms more effective. In general, how well each type of birth control method works depends on a lot of things. One factor is whether the method chosen is convenient — and whether the person re to use it correctly all the time.
Protection Against STIs Most male condoms are made of latex. Those made of lambskin may offer less protection against some STIs, including HIV/AIDS, so use of latex condoms is recommended. For people who may have an allergic skin reaction to latex, both male and female condoms made of polyurethane are available. When properly used, latex and polyurethane condoms are effective against most STIs. Condoms do not protect against infections spread from sores on the skin not covered by a condom (such as the base of the penis or scrotum). For those having sex, condoms must always be used to protect against STIs even when using another method of birth control. Abstinence (not having sex) is the only method that always prevents pregnancy and STIs.
Possible Side Effects Most men and women have no problems using condoms. Side effects that can occasionally occur include: • •
Allergy to latex condoms. Irritation of the penis or the vagina from spermicides or lubricants that some condoms are treated with.
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ADVANTAGES
•
• Condoms may help men who have trouble keeping an erection, and may help prolong the erection. They protect against pregnancy and sexually transmitted diseases.
DISADVANTAGES • A few men cannot keep an erection after putting on a condom. • Allergic reactions to latex condoms are rare, but they do occur. (Changing to condoms made of polyurethane or animal membranes may help.) • Friction of the condom may reduce stimulation of the clitorus and lubrication, making intercourse less enjoyable or even uncomfortable. (Lubricated condoms may reduce this problem.) • Intercourse also may be less pleasurable because the man must pull out his penis right after ejaculation. • The woman is not aware of warm fluid entering her body (important to some women, not to others).
Who Uses It? Couples who are responsible enough to stop and put a condom on each time before sex and people who want protection against STIs use condoms. Because condoms are the only method of birth control currently available for men, they allow the guy to take responsibility for birth control and STI protection. Condoms are also a good choice for people who do not have a lot of money to spend on birth control.
How Do You Get It? Condoms are available without a prescription and are sold in drugstores, supermarkets, and even vending machines (in some
H e a v e n D r i v e n B u s i n e s s P l a n | 35
stores, they're in the "Family Planning" aisle). Condoms come in different sizes, textures, and colors.
How Much Does It Cost? Condoms are the least expensive and most available method of birth control — other than abstinence, of course. Male condoms cost about ฿20 to ฿50 each and are less expensive when they are bought in boxes that contain several condoms.
IMPORTANT TIPS • Make sure condoms are available and convenient. If no condoms are handy at the time of a sexual encounter, you may be tempted to have intercourse without one. • Carefully withdraw the penis right after ejaculation so that semen cannot leak out of the condom as the erection is lost. • Use each condom only once. • Do not carry condoms in your wallet for long periods of time. Replace them every once in a while. Friction from opening and closing your wallet and from walking (if you carry your wallet in your pocket) can lead to tiny holes in the condom. Nevertheless, it is better to use a condom that has been in your wallet for a long time than to not use one at all. • Don't use a condom that is brittle, sticky, or discolored. These are signs of age, and old condoms are more likely to break. • If a condom package is damaged, don't use the condom because it also may be damaged. • Do not use a petroleum-based substance such as Vaseline as a lubricant. These substances break down latex, the material in some condoms. • If you feel a condom break during intercourse, stop right away and put on a new one. , ejaculation does not have to occur for a pregnancy to result (pre-ejaculatory fluids can contain active sperm), or for a disease to be transmitted. • If ejaculation occurs with a broken condom, insert a spermicidal foam or jelly to help reduce the risk of
H e a v e n D r i v e n B u s i n e s s P l a n | 36
pregnancy or ing an STD. You can also your health care provider or pharmacy about emergency contraception ("morning-after pills"). • Store condoms in a cool, dry place away from sunlight and heat.
Appendix 2: Research on Condom Use Condom use is often seen as a tipping point in the success of HIVAIDS education and prevention. This section describes the literature on the effectiveness of condoms in the prevention of HIV and AIDS. Here are the facts, to date: Consistent condom use is the most effective way to reduce exposure to HIV and other sexually transmitted diseases among sexually-active individuals. Two major, international health agencies (World Health Organization and UNAIDS) are standing by recommendations for condom use as a means to prevent transmission of HIV/AIDS and other sexually transmitted disease (STDs). There are no marketed microbicides or vaccines (with the exception of the Hepatitis B vaccine) for the prevention of sexually-transmitted diseases. Latex condoms have demonstrated significant protection against diseases transmitted via penile-vaginal intercourse. STDs studied are: HIV infection, gonorrhea, chlamydial infection, [including gonococcal and chlamydial pelvic inflammatory disease (PID)], syphilis, chancroid, trichomoniasis, genital herpes caused by herpes simplex viruses (HSV) 1 and 2, and genital human papillomavirus (HPV) infection and HPV diseases.
Resistance to Condom Use One of the most controversial issues in prevention education is the varying responses towards use of condoms. The body of literature on the subject points to cultural and religious taboos; psychological implications (such as illusions of safety); views about condom
H e a v e n D r i v e n B u s i n e s s P l a n | 37
effectiveness; increased risk behaviors correlating to promising research on treatment; and issues of male aversion. We shall address these responses below. Condom Use In the United States, where condom availability is pervasive, only 58% of sexually active youth use condoms. Young people give the following reasons why they do not use condoms: a) embarrassment; b) a belief that it may affect sexual performance; c) concerns that a partner may be suspicious if a young man puts on a condom; d) an unrealistic optimism in one's personal risk of contracting HIV and other STDs. The reason for unrealistic optimism may be due to several factors, not the least of which is a sense that by underestimating one's risk, a young man or woman can reduce the anxiety. It may seem to be counter-intuitive at first, but the greater the anxiety the young people feel, some studies show, the less chance there is that they will use a condom, for they fight fear by building up a psychological wall of protection. Such denial of vulnerability is not uncommon; many populations avoid uncomfortable emotions associated with health problems, an issue that is surely exacerbated in settings where health care options and treatment facilities are limited. In developed countries, the introduction of more sophisticated drug therapies in HIV Positive treatment may be contributing to a rise of infections and risk-taking behaviors. Young people may rationalize that AIDS is treatable. Role models (movie stars and sports figures) have engaged in a public relations campaign to restore pride and dignity to HIVinfected people ("I am Positive"). While such a campaign may be essential to ensure civil rights and active participation in society, an unintended consequence may be the elevation of one's HIV-Positive diagnosis as a status symbol. In Thailand, only about 25 percent of young men report using condoms when engaging in casual or risky sex, often because they
H e a v e n D r i v e n B u s i n e s s P l a n | 38
do not view sex with other young people as risky. While young people were aware of the risks of HIV, they often lacked access to life-skills training and services that would help them translate knowledge into behavioural change. They didn't know, for instance, how to negotiate condom use with a reluctant partner. Addressing Resistance to Condom Use – 2 Studies There are several HIV-AIDS programs designed to change behavior. Some focus on facts where little information is available. Others try to infuse frightening messages about HIV-AIDS. Still others integrate the personal elements (showing the effect of knowing someone with AIDS on one's own behavior, for example). Each HIV-AIDS program must be designed with evaluation techniques that use consistently accurate appropriate dependent and independent variables and analyses that can quantify the connection between education programs and changes in behavior. As was shown in the Topic: "Resistance to Condom Use," attempts have been made to reduce feelings of invulnerability so that young people do not engage in unprotected sex. The key is to integrate factual material with personal identification and engagement in order for the lessons to run deep. Two studies have been conducted with young people to determine the clues and strategies for helping them change their behavior. We have chosen to focus on these two approaches to HIV-AIDS education because they integrate personal engagement and good teaching. We stress that the creative presentation of programmatic materials is as important as the factual presentation of materials. In the first approach, researchers focused on whether or not young people really "knew" about a person's HIV status, based upon a look at photographs and that person's brief statement about his/her sexual history. Many students were unable to produce an accurate score of HIV Negative and HIV Positive people. This study was based upon the idea that a student's sudden confrontation with his or her failed perceptions would change behavior. In this case, such a change would result in not relying on appearance and a
H e a v e n D r i v e n B u s i n e s s P l a n | 39
statement from a potential partner. Protection would then take place as a matter of course. It has been suggested that the study using photographs take on longitudinal elements by following the lives of young people pictured in the photographs for several months or years. In this way, several variables can be studied, including: a) a longer term analysis of the staying power of the exercise itself - is it continuing to work? b) a reinforcing of the point, such that subsequent groups of students participating in the photo-identification project could see the deterioration in the lives, over time, of those infected by HIV. A seemingly bright and beautiful face one day then turns into the face of disease. In the second approach, researchers focused on negative health events as a compelling way of demonstrating a willingness to use condoms. In such cases, young people spoke about the STDs contracted. In addition, a 20-minute video was shown. Studies have shown an initial commitment to use protection, though it is not entirely clear whether or not the pressures surrounding participation in the study itself may not have had an effect on young people, who may feel pressured to provide the "appropriate," rather than the truthful, answer. Both approaches were followed up by questionnaires at three and six months asking whether or not the young people had been sexually active in the intervening time and the degree to which they intend to use condoms.
FINDINGS & FOLLOW-UP The intention of both studies is to reduce feelings of invulnerability and increase condom use. Both approaches showed demonstrable effects in reducing feelings of invulnerability and increasing the intention to use condoms. The results of this "stand-alone" intervention may be limited to some degree. The message remains. The teenagers' lack of ability to guess accurately the health of those in the photographs translated into a sense that:
H e a v e n D r i v e n B u s i n e s s P l a n | 40
a) they may be wrong; b) the picture they viewed could, perhaps, one day be of them. Future studies are being tested to overcome obstacles to condom use that extend beyond the perceptions of teenagers - availability in numbers and ease of access, social stigmas, myths about condoms, for example. The post study is as important as the study itself, for the questionnaire itself is explicit about questions directed to young people about their own sexual behavior. These private issues are public insofar as the young people are participating in such a study and the follow-up surveys, which acknowledge their sexual activity. (We do not know what the drop-out rate is to determine the degree to which fear of such questions may have frightened some participants away.) A conclusion that can be made, however (based upon a larger body of research in adolescent psychology) is that threatening or frightening images or programs showing the connection to and consequences of a particular behavior (in this case, unprotected sex) have been marginally effective, but short term. Recent studies have shown success in mitigating cigarette smoking amongst teens by showing dirty lungs, but the effects do not last because such messages are not personalized. Even more, some young people resist such messages as authoritarian and, therefore, go in the opposite direction - toward greater risk taking.
Appendix 3: Heaven Driven’s Brand Product Logo
Heaven Driven
H e a v e n D r i v e n B u s i n e s s P l a n | 41
Product Design
Appendix 4: Sample of www.heavendriven.com website pages
H e a v e n D r i v e n B u s i n e s s P l a n | 42
“Products” page, containing several types and packages of condoms.
H e a v e n D r i v e n B u s i n e s s P l a n | 43
Some Promotion that our company will offer will be put in this webpage, “Promotion”. This page will be updated every time we have
a promotional campaign.
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The “Company Background” is telling the audience a little something about our company with some photo gallery for them to look at.
H e a v e n D r i v e n B u s i n e s s P l a n | 45
“Sex Guide” page is telling the information and methods of how to use condoms. This page would be useful for our customers to make
use of our product.
H e a v e n D r i v e n B u s i n e s s P l a n | 46
“ Us” page is for the audiences or customers to give us some or suggestion so that we can improve ourselves and set a higher standard.
Appendix 5: Graphs showing the Net Profit Margin, Return on Investment, and Return on Equity
Net Profit Margin 10.00%
Percentage
8.00% 6.00% 4.00% 2.00% 0.00% Net Profit Margin
Year 1
Year 2
Year 3
Year 4
Year 5
5.31%
7.74%
8.14%
8.15%
8.16%
Returnson Investment
Percentage
40.00% 30.00% 20.00% 10.00% 0.00%
Year 1
Year 2
Year 3
Year 4
Year 5
Returns on Investment 25.04% 35.14% 35.81% 33.26% 30.59%
Returns on Equity 40.00%
Percentage
30.00% 20.00% 10.00% 0.00%
Year 1
Returns on Equity 32.40%
Year 2
Year 3
Year 4
Year 5
39.54%
35.81%
33.26%
30.59%
H e a v e n D r i v e n B u s i n e s s P l a n | 47
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