RICARDO PALMA UNIVERSITY

ECONOMIC AND BUSINESS SCIENCES FACULTY

GLOBAL BUSINESS ADMINISTRATION SCHOOL

“Production and sell of Peruvian sport T-shirt”

PROFESSOR: Dr. Larios Meoño, Fernando

COURSE: Formulation of Investment Projects

MEMBERS:
Zabalbú, Brenda
Valenzuela, Roberto
Bernaola, Jose

2017
 EXCUTIVE SUMARY

Currently, our country is going through a great football moment, bringing

as a consequence high demand for different products related to Peruvian
soccer, so, the demand for shirts has doubled gradually and based on this,
we have seen as an opportunity the production and marketing of printed
shirts.
The project called "BLANCO Y ROJO" arises based on the demand that
currently exists due to the classification of our country; So, in the next
report we will present the project qualitatively and quantitatively, to
determine the technical and commercial feasibility in terms of prices,
supply and demand.
The project "BLANCO Y ROJO" consists of the projection of production,
elaboration and commercialization of Peruvian shirts with prints, for men,
women and children (in sizes S, M and L), which will be located in the
industrial zone San Pedrito I - Surco, its target segment is the entire
population of Lima with projections to provinces and out of the country.
At the end of the presentation we can analyze the feasibility of our
project, measured in terms of profitability.
 INDEX

1. Business project presentation

1.1) Profile of the project
1.2) Mission
1.3) Vision
1.4) Values
1.5) General Objective
1.6) Description of the objective
1.7) Specific objective
1.8) Scope
1.9) Swot analysis
1.10) Analysis of target market
2. Marketing strategies
2.1) Pricing strategy
2.2) Payment strategy
3. Business project Process
3.1) Benefits of the project
3.2) Assignment of project manager
4. Planning
4.1) Total investment
4.2) Amount of own resources:
4.3) Banking Finance Amount:
4.4) Human resources plan:
4.5) Municipality permit:
4.6) Definition of the quality and quantity of the work
4.7) Financial risks
4.8) Risks availability of resources
4.9) Risk management
4.10) Risks of competitors
5. Execution
5.1) Negotiating for the project team members
5.2) Directing and managing the work
5.3) Work with the team members to help them improve
6. Monitoring & control
6.1) Tracking progress
6.2) Comparing actual outcome to predicted outcome
6.3) Analyzing variances and impacts
7. Financial closure numbers
7.1) Cash flow of the project
7.2) Depreciation detail
7.3) Present value of project
8. Conclution
1. BUSINESS PROJECT PRESENTATION

1.1) Profile of the Project

In order to understand the profile of the project, we present some

basic factors to be considered as the beginning of the analysis of the
information we are presenting:

 Project Name: “Blanco y Rojo”

 Organization name: Camisetas Flash SAC
 Economic activity: Production and sales of sports shirts
 warehouse Location: industrial zone San Pedrito I - Surco
 Local Length: 250 m2
 Start and end date of the project: July 2017- January 2019
 Strategic Market: Lima
 Segment: PEA 24-44 years Women and Men

1.2) Mission

To manufacture higher quality shirts, using Peruvian cotton

recognized for its exquisite quality, thus fulfilling the expectations
and demands of national customers, satisfying and requirements of
our client.

1.3) Vision

“Be the first producers of sportswear in our country, with a

projection to export to different countries of the world”

1.4) Values

 Discipline
 Honesty
 Order
 Punctuality
 Pro activity
 Respect
 Customer service
 1.5) General objetive

To manufacture Peruvian cotton sport t-shirts at a low price to offer our

customers comfort, using machinery to add productivity and efficiency in
our production process.

1.6) Description of the objective

This project goal is to produce quality t-shirts at a low cost, taking

advantage of the current situation of soccer in Peru, in this way generating
the greatest amount of return for shareholders.

1.7) Specific objetives

• Quantify the market potential for product distribution

through market studies.

• Conduct an analysis to determine the financial viability of

the project

• Identify the needs of potential consumers and adapt to the

marketing plan.

1.8) Scope

Due to the above background, we intend to solve these problems by

creating new designs that satisfy the customer. To approach this
Peruvian selection Fan segment of the market, we believe that this
project would be an excellent business and would help these people
to be a very profitable business. We offer a T-shirt with different
models and designs in variety.

1.9) SWOT Analysis

 Strength:

Perhaps one of our strongest strength could be attributed to the quality of

employees and the latest machines and equipment that we have in our T –
shirt production factory. Our chief executive officer, Mr. Roberto
Valenzuela will be bringing his vast wealth of experience to the table and
that is indeed a huge positive for Unku™ T – Shirts Design and Sales
Company

 Weakness:

A major weakness that may count against us is the fact that we are a new
T – shirt design and sales company and we don’t have the financial
capacity to compete with million dollars fashion label like Nike, Umbro,
Adidas, Puma (sport T – shirts) et al when it comes to controlling the
market or detecting the trend.

 Opportunities:

One thing is certain, whether good or bad- people will always look for
clothes to wear and on the average they go for T – shirts simply because it
is cheap. Besides, the opportunity for clothing line to sell their clothes is
massive and we hope to leverage on these opportunities to sell our T –
shirts. Also world soccer match is a fever that allows us increase our
selling expectative.

 Threat:

Just like any other business, one of the major threats that we are likely
going to face is economic downturn. It is a fact that economic downturn
affects purchasing power. Another threat that may likely confront us is the
arrival of a new T – shirts design and sales company in same location
where our target market exist who may want to adopt same business
model like us.

1.10) Analysis of target market

The chosen market is Metropolitan Lima and the selected distribution

item is cotton sport T-shirt. This decision was made taking into account
the great demand that is experienced today in Peru. The growth potential
of acquiring this product is incredible.
The socioeconomic situation of the Metropolitan Lima shows the
attractiveness of this market and the growth potential of this product.
The state to which we are heading is Lima due to its large number of
habitants, high purchasing power and a taste for the love of the shirt of
the selection.
In order to better understand the needs of our customers and the designs
they expect from our shirts we decided to develop a small survey as
shown below:

SURVEY EXAMPLE
n: 125
Content of survey
We appreciate that you share 2 minutes of your time answering the
following questions:
1. Do you like to buy a cotton t-shirt of Peruvian soccer team?
A) Yes
b) No, why? .....................................

2. If so, what type of neck do you prefer?

a) Round neck
b) V Neck
c) Turtle neck
d) Other: ……………………

3. If yes, what design do you prefer?

a) White with Red across line
b) Red whit white across line
c) Other: …………………………………

4. How much did you pay for the shirts?

a) 60
b) 70
c) 80
d) Other: …………..

2. MARKETING STRATEGIES

2.1) Pricing Strategy

Camisetas Flash SAC, made sure to maintain competitive production costs
to offer a good product at an affordable price to all zones of our main
market which is Lima.

2.2) Payment Strategy

Our payment policy is all inclusive because we are quite aware that
different people prefer different payment options as it suits them. Here
are the payment options that will be available in every of our outlets
where our T – shirts and casual clothes will be sold;

 Payment by cash
 Payment via Point of Sale (POS) Machine
 Payment via online bank transfer (online payment portal)
 Payment via Mobile money
 Payment by cash

In view of the above, we have chosen banking platforms that will help us
achieve our payment plans without little or no difficulties.

3. BUSINESS PROJECT PROCESS

3.1) Benefits of the project

The benefits of the project; we find an improvement and incentive

to obtain several consumers of Peruvian Sport T-shirts and the
great demand that exists today because of the world championship
of soccer.
 3.2) Assignment of the project manager
The person assigned to monitor the project is Brenda Zabalbu.

4. PLANNING:

4.1) Total investment:

4.2) Amount of own resources:

4.3) Banking Finance Amount:

4.4) Human resources plan:

Our project hires people with technical studies in dressmaking to be
part of the project's staff.

4.5) Municipality permit:

We must have the Municipality's permit, documents and certificates to
operate the project.
4.6) Definition of the quality and quantity of the work

Quality: we will offer a product with quality and process

certificate of ISO 9001.
Quantity: our production capacity is 988 per month.

4.7) Financial risks:

We will request bank credit for the purchase of production
machinery.
4.8) Risks availability of resources:

Peru is a producer of cotton and also fabrics of good quality so the

risk of not finding raw material for the production of our shirts is
very low.

4.9) Risk management:

The type of Risk can be change to demanding of target market, we

pretend to apply diversification with other innovative products.
 4.10) Risks of competitors

Since the demand is high for the soccer world cup we have the risk
of having a lot of competition that can use the strategy of low prices
to sell in bigger quantities.

5. EXECUTION

5.1) Negotiating for the project team members

Our negotiation with the personal will be negotiation according to the

law and according to the market remuneration, Essalud, AFP and
other labor rights. Also make them understand the commitment of all
members to carry out the project's success and that it can probably
become a company to long-time.
 5.2) Directing and managing the work

We will charge local administrators that allows a continuous

interaction and supervision of the activities carried out, in addition to
the solution of problems that may arise.

5.3) Work with the team members to help them improve

As managers we will be able to hear recommendations or customer

complaints and analyze possible solutions and improvements to staff.
In addition to putting innovation into practice so that staff feel
motivated and thus increase the efficiency of the project.

6. MONITORING & CONTROL

6.1) Tracking progress

We will be present throughout the process to continue

implementing management indicators for current results and how
to improve them. All this will be in charge of us as administrators. In
addition to doing a software since allows to automate processes.

6.2) Comparing actual outcome to predicted outcome

As part of our activity it is to analyze the general balance of end of

year and so we can know about finances and forecast in the next
few years.

6.3) Analyzing variances and impacts

Constantly analyze the situation of actual and planned behavior.

This analysis is used to keep a business or project.
7. FINANCIAL CLOSURE NUMBERS

7.1) Cash flow of the project

 7.2) Depreciation detail

7.3) Present value of project

8. CONCLUTION

After an exhaustive study we can say that the draft of making sports shirts
of the Peruvian team is favorable and totally viable, generates juicy
returns for the shareholders and in a short time, the idea is to lay the
foundations of a long-term production by the recognition of our brand and
quality product.