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Economic Indicators For Hand Tool Industry
Economic Indicators For Hand Tool Industry
A REPORT
ON
MARKETING PLAN OF HAND TOOL COMPANY
EXECUTIVE SUMMARY
We here present a business plan to set up a new venture in hand tools industry. Our company is
P.P. hand tools solution. which will basically operate in Delhi and NCR region, But we are
willing to take orders from all over the India through website ordering.
The hand tool industry is totally fragmented industry which has large small players in the given
area. Our offering of hand tools is different from these local players in the sense that we provide
all kind of hand tools under one umbrella of P.P. hand tools solution. We have tools from
commonly used hammers, scisors to verneir caliper ,micrometers.
There are few organized players in the sectors also like Stanley India, Argeos ltd, Taparia tools,
Klvein ltd .These players also offer good range of hand tools in the markets. They have created
their names in the field. So our fight is not directly with these players but we first of all try to
make a space for ourself in the local markets with catering to the orders of far areas which come
through our sites.
Our first objective is to become a common name in the Delhi NCR region and then take on these
national level players. To become popular in the local area ,we are using the best material to
make hand tools reliable and durable, pushing it in markets with providing good discount to the
retailers on bulk purchase , creating positive word of mouth effect , handling the problems of
current users effectively
After this we will expand to the national level players , by further improving the standards and
specification of hand tools and reaching out to the industrial buyers of the region
,simulataneously promoting the order taken on internet.
Our sale target is for few months is large because we need to expand quickly in the local area
with low margin we get for every sales. In this phase we will derive major profits from the orders
that come from internets
In next phase our profit maximsation will be better because we will be well known brand in the
region.We will search out for better revenues from the Industrial buyers who purchase in bulk.
Energy intensive industry: Apart from being a labor intensive industry, this industry is
also an energy intensive one. It is estimated in a recent study that in most economies
adoption of energy efficient processes and technologies can yield in energy savings of up
to 30 to 50%.
2500
12.8 million
7
25000
Jallandhar/Nagpur
$33 billion
SWOT ANALYSIS:-
STRENGTH
1- Competitive Price.
2- Distribution network.
3- Innovative design of the products
which can increase efficiency.
4- Direct delivery capability.
OPPORTUNITIES
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Market Development?
Industry trends?
Technology development and innovation?
Global influences:- (Government to
remove 24 per cent FDI cap on SSI
units.)
5- New market, vertical, horizontal?
6- Business Product development.
7- Partnership agencies and distribution
WEALNESS
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THREATS
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Political effect?
Environmental Effect?
IT Development?
Market Demand.
New technologies, services, ideas?
Insurmountable weakness?
Achieve a positive contribution to overhead and meet the break even point with in 3 years
from the commencement of the business.
Reach the target level of the average of 20% return on investment over the next 4 years.
Achieve a positive contribution to overhead and sell 20000 kits in the market.
Increase awareness about our entrance in the market. (It will be measured by no. of sales
in the first three month.
SEGMENTATION:
Our product is hand tools. It includes the axe, hammer ,chiesel , screwdrivers, drilling
tools, boring tools, micrometers, scalpers etc.
TARGETING:
NOW after segmentation we are going with targeting in this we segment the profitable market.
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Industrial players
small labours who uses these hand tools
In various houses where to do the day to day business
In various instuitions of education where these tools are used
Industrial players who have few small work in their outlet or factory to be done. They use
various hand tools for small works They buy these hand tools in bulk ,but they dont have
particular suppliers for it. So there is latent demand for the good suppliers, thus we can
positioned our self as reliable and great supplier. There are large such players in the outskirt of
NCR region .We will target these prospect clients to increase our base of loyal clients.
The layman labours ,technician ,electrician all need hand tools to perform their jobs. They buy
these tools from the local markets .So to reach these segments of ours we need that our hand
tools are available at each and every nuke and corners.
Secondly , the word of mouth is major marketing tool over here. So we should ensure that our
product is better in terms of quality and features. As we are the only brand that serves all type of
hand tools thus bad words in one sector can affect performance in other sectors too.
POSITIONING:
Before positioning we should know the critical factors that are perceive by the customers are:
1- Quality
2- Standard
3- Durability
4- Reliable
5-Good looks
6- Brand name
Ou r
positioning
competitors
Standards
Reliable
So from the analysis we get that standards and reliability are major way of positioning .The most
players are low in standard in terms of specification and quality but are reliable and durable
products.
So we position our products as better in terms of reliability and meeting the world class standards
that are prevailing in hand tools so we can definitely earn a brand name for ourselves.
200
150
o u rs
100
stanley
b ad o
50
aegon
0
1
looks
Durable
reliable
Value grid
standard
We offer a diverse and comprehensive products mix to meet the need of the industrial
market. we manufacture tools for automotive and other industrial application.
Assistance in custom application. we have certified engineers on staff to help you with
your custom required tools.
We offer variety of services from products assembly custom parts and tooling for your
convenience.
PARTICULARS
PARTICULARS
AMOUNT
SALES
2 LACKS * 52 WEEKS
104 LACKS
LESS:COST OF
PRODUCTION
LESS:ADMINISTRATIVE
COST
LESS:SELLING AND
DISTRIBUTION
EXPENSES
LESS:DEPRECIATION
40 LACKS
35 LACKS
10 LACKS
8 LACKS
15 LACKS
10 LACKS
5 LACKS
LESS:INTREST PAID
ON PLANT AND
MACHINARY
ON DEBT
TAXABLE PROFIT
=104-35-8-10-5-5
41
TAX
13.8 LACKS
NET PROFIT
5 LACKS
27.2 LACKS
Supplier Power:
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Threat of Substitutes:
1- Some cross-products subst
2- Ability to import from oversees market.
Competitive Rivalry:
1- Many companies in the
market.
. 2- Low switching Cost.
3- High cost of leaving
Market.
Buyer Power:
1- Homogeneous products.
2- Average price sensitivity.
3- High buyer power.
4- Large orders.
5- Product life cycle is
large.
This worries:
x
x
x
x
The threat of new entry is not easy, if anyone looks as if theyre making a sustained
profit, then competitors can come in to the industry.
Competitive rivalry is extremely is high: because of many companies are already exists.
Buyer power is strong, again implying strong downward pressure on prices.
There are some threat of substitution.
CONTINGENCY PLAN
1. We will focus on promotional schemes and discount to attract the customers if footfall is low.
2. Make our ambience more attractive for our customers to gain their interest.
3. We will organize special fest inspired by liberty to enhance our brand image if we found that
target market fail to recognize us.
4. We may also shift our focus our attention to one of the market if we are doing continuously
poor in one market (international and national).