Table of Contents

CHAPTER I: MARKETING FEASIBILITY...............................................................................5

1.1 Product / Service Description.............................................................................................5
1.2 Industrial Analysis Assessment..........................................................................................1
A.

Industry Background......................................................................................................1

B.

Industry Strengths......................................................................................................... 5

C.

Problems in the Industry............................................................................................5

D.

Opportunities in the Industry......................................................................................6

1.3 Target Market Analysis.......................................................................................................7

A. Geographic....................................................................................................................... 7
B. Demographic.................................................................................................................... 7
C. Psychographic................................................................................................................. 8
1.4 Survey................................................................................................................................ 8
A.

Sample Size..................................................................................................................8

B.

Sample Survey.............................................................................................................. 9

1.5 Quality Function Deployment...........................................................................................16

1.6 Demand Analysis............................................................................................................. 17
A.

Projecting Demand......................................................................................................17

1.7 Supply Analysis................................................................................................................ 19

1.8 Marketing Planning........................................................................................................... 22
A.

Marketing Segmentation..............................................................................................22

B.

Product Mix Strategy...................................................................................................27

C.

Marketing Mix........................................................................................................... 28

D.

Marketing Channels.................................................................................................29

E.

Distribution Decision....................................................................................................29

F.

Promotion and Communication...................................................................................29

G.

Marketing Organization............................................................................................30

CHAPTER II: TECHNICAL FEASIBILITY.............................................................................32

2.1 Market Analysis................................................................................................................ 32
A. Quantity to Store (Demand)............................................................................................32
B.

Service Specification...................................................................................................32

C.

Market Share........................................................................................................... 33

D.

Market Positioning...................................................................................................34

E.
2.2

Target Market (Geographical Location)........................................................................36

Nature of Business......................................................................................................39

2.3 Warehouse Location........................................................................................................ 39

A. Location.......................................................................................................................... 39
B.

Alternative Locations...................................................................................................39

C.

Transportation Facility..............................................................................................40

D.

Availability of Land...................................................................................................40

E.

Nearness of Market.....................................................................................................40

F.

Availability of Suitable Utilities.....................................................................................40

G.

Proximity to Supplies...............................................................................................40

H.

Geographical and Weather Characteristics..............................................................41

I.

Taxes and Other Laws.................................................................................................41

2.4

Distribution Channel....................................................................................................42

A.

Packaging.................................................................................................................... 42

B.

Delivery....................................................................................................................... 43

2.5 Technical Requirement.....................................................................................................43

A. Manpower Requirement.................................................................................................43
B.

Equipment Requirement..............................................................................................45

C.

Supplies Requirement..............................................................................................48

D.

Utilities Requirement................................................................................................48

2.6 Facility Design.................................................................................................................. 49

A.

Site Master Plan.......................................................................................................... 49

B.

Allocation of Spaces to Different Activities Involve.......................................................49

C.

Architectural and Engineering Plans / Details..........................................................50

D.

Costs........................................................................................................................ 52

2.7 Cost Analysis.................................................................................................................... 52

A.

Major Costs................................................................................................................. 52

B.

Possible Sources of Error............................................................................................54

CHAPTER III: ORGANIZATIONAL AND MANAGEMENT FEASIBILITY..............................55

3.1 Organizational Chart........................................................................................................ 55
A.

Year 1 to 3................................................................................................................... 55

A.

Year 4 to 6................................................................................................................... 56

B.

Year 7 to 10................................................................................................................. 57

3.2 Job Description................................................................................................................ 58

3.3 Factor Rating.................................................................................................................... 78
3.4 Salary Structure............................................................................................................... 78
3.5 Salaries, Career Paths, and Attrition Rates......................................................................79
3.6 Finalized Salaries and Benefits........................................................................................79
CHAPTER IV: FINANCIAL FEASIBILITY..............................................................................84
4.1 Sales Schedule................................................................................................................ 84
4.2 Operating Cost Schedule.................................................................................................84
4.3 CAPEX & Financial Plan....................................................................................................1
4.4 Implementation Schedule with Working Capital..................................................................2
4.5 Balance Sheet.................................................................................................................... 3
4.6 Income Statement..............................................................................................................1
4.7 Cash Flow.......................................................................................................................... 1
4.8 KPI with Rates.................................................................................................................... 1
4.9 Financial IRR...................................................................................................................... 2
CHAPTER V: SOCIO-ECONOMIC FEASIBILITY....................................................................3
5.1 Cost Benefit Analysis..........................................................................................................3
A.

Identification of Costs and Benefits................................................................................3

B.

Identification of Direct Benefits......................................................................................3

C.

Externalities, Secondary Benefits, Intangibles...........................................................3

D.

Adjustments to inputs from Financial Statements......................................................4

E.

Comparison of With and Without the Project...............................................................4

5.2 Valuation of Cost and Benefits...........................................................................................4

A.

Choice of Numeraire......................................................................................................4

B.

Shadow Price................................................................................................................1

C.

Opportunity Cost of Capital........................................................................................1

D.

Valuation of Direct Costs............................................................................................1

E.

Valuation of Direct Benefits............................................................................................1

5.3 Economic Indicators........................................................................................................... 1

CHAPTER VI: REFERENCES.....................................................................................................1