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Sme Final Report Volt Bank
Sme Final Report Volt Bank
The idea behind this company is to create a multipurpose product called “Volt Bank” that it is
‘the only battery you’ll ever need.’ Volt bank is a portable battery, with a sleek design that is
available in two different forms; one that will charge through electricity and the other that is
more innovative and has never been introduced in Pakistan; this design of power bank will be
charged through solar energy. It is a unique gadget, nonetheless very convenient to use. It will
contain multiple ports and plugs through which the consumer can charge or use electric power as
required by their needs.
Capital investment for Volt Bank has been funded by Mahnoor Mazhar and Rabia Ayub. The
basic idea behind this product is to make life easier and faster for consumer’s who live in
geographical region like Pakistan where we face many electrical crisis. Pakistan is a country
where we get high amount of sunlight but we tend to make very less use out it. Moreover,
Pakistan being an environmentalist country it is important to get rid of all the harmful
consumption from our daily lives therefore, Volt Bank is there to fix your needs. We stand by
our mission statement which says “To become the most well-established company in Pakistan to
provide a modern, high quality, alternative energy solution that remains on the cutting edge of
the portable charging market”. However, our main focus is on solar powered model. This
model’s battery will last up to 10 hours once fully charged. Our main target for this product is
hospitals in remote areas that suffer from low maintenance and power crisis. Our aim is to utilize
sunlight in Pakistan to the maximum.
Volt bank will be manufactured in Pakistan and will cost 7640 Pakistani rupees. This startup
product will be manufactured in Lahore headquarters with an initial investment of 10 million
rupees. We initially aim to hire a small team of engineers who will further help us develop the
product and a further 10 member sale teams who be helping us market the product through
business to business marketing. We aim to sell it at 35000 rupees. We will sell our product
through personal selling and give our customers a prototype that they can run and test for a
certain amount of time. Our initial fixed cost will be 5838212 rupees and we plan to sell 2600
units in the first year. According to our calculations, we plan on breaking even after 5 months of
our start up with 198 units sold.
The idea behind this company is to create a multipurpose product called “Volt Bank” that it
is ‘the only battery you’ll ever need.’ Volt bank is a portable battery, with a sleek design that
is available in two different forms; one that will charge through electricity and the other that
is more innovative and has never been introduced in Pakistan; this design of power bank will
be charged through solar energy. It is a unique gadget, nonetheless very convenient to use. It
will contain multiple ports and plugs through which the consumer can charge or use electric
power as required by their needs. The features that the power bank will support will help us
and our customers to accomplish our target. If the consumer buys this battery he/she does not
need any other power bank or generators, as this will be enough. Not only this, our products
are environment friendly, as we’ll be launching this volt bank in a design which comprises of
solar panels that will charge the battery through solar energy and this way no excess
electricity will be consumed and the customer won’t have to make the extra effort to plug the
battery in to be charged. The power bank does not require any fuel like a generator, hence it
also saves it user the additional cost of fuel. As load shedding is a serious issue in Pakistan
the product will help hospitals effectively carry out their operations without worrying about
the electricity or having to spend extravagant costs to install generators and incur the
additional costs of fuel.
Mission statement
“To become the most well-established company in Pakistan to provide a modern, high
quality, alternative energy solution that remains on the cutting edge of the portable charging
market”.
Demographics
Demographics of the customers will not really matter in either hospitals or as the buyer of the
product, as household size, religion, ethnicity, gender are all not applicable. Volt Bank can be
used by absolutely anyone, but should be able to read the instructions to use it accordingly. It is a
relatively pricy product (solar powered design) that caters to many needs so buyers need to be
earning a minimum of RS.150, 0000.
Geographic: Batteries are bought all around Pakistan as they are part of motor vehicles and
UPS, the use of which is not confined by location.
Competitors:
As we are having advantage of first move in the market so we won’t be having direct
competitors in Pakistan. Since we’ll be the pioneers of this innovative, multi-purpose, portable,
solar powered power bank , our indirect competitors may include: Volta Batteries, AGS, Sony,
Exide, FB, and Atlas etc.; these companies offer power banks and other gadgets similar to a
power bank but not one that is this multi-functional, portable and runs on solar energy.
The graph below shows global power bank market size, by capacity range. This shows how the
capacity above 20, 00 mAh has one of the highest market share and it is bound to increase with
the years to come. Therefore, according to this, our sales in Pakistan will definitely increase in
future as technology advances; more and more power supply will be needed.
We are aiming to sell 500 units of Volt Bank in one year. Assuming that we will sell 250 units of
the solar powered design and 250 units of electrically powered design at per unit price Pkr.
15000 and Pkr.8000 respectively, our annual sales will be about Pkr. 5750,000.
Chapter V: The Economics of Business
Marketing strategy
Volt Bank’s marketing strategy refers to its overall approach for marketing its products. Our
approach typically comes down to how we position Volt Bank in the market and how it
differentiates itself from its competitors. We’re launching an innovative, multi-functional, solar
powered product that has not yet been introduced in Pakistan. We do not have direct competitors
however the indirect competitors have still not come up with such a product. Our aim is to target
business customers, especially government hospitals and institutions in remote areas where
electricity crisis is a major problem. We claim to run our products on solar energy promise to
provide efficient products to our customers.
Product:
Volt bank is working on reliability and we assure our customers this battery will be working for
long term. We are placing our product on good strength, current flow is better than other
batteries and it need minimum maintenance. And our main differentiation is that Volt Bank
comes in a design with solar panels which won’t require electricity to be charged hence solving
the electricity crisis. Water loss is in very small amount as we will use special hybrid alloy
system. We inform our customers that Volt Bank is environment friendly.
Price:
We have diverse product range so our pricing for its product is also very diverse. Our solar
powered design is Rs 15000 and our electrically powered design is priced at Rs. 8000. Our prices
normally depend on raw materials used for making of products that can vary in years. Our aim is
to sell the product at reasonable prices so that the common misconception is erased from
consumer’s minds that solar powered products are highly expensive. However at the same time
we aim not to keep it too low that the consumer thinks it’s not good enough. Since we’re a new
company and Volt Bank is a fairly new product we aim to keep profit margin minimal for the
first few years.
Promotion:
Since Volt Bank is mostly going to be a B to B product, we will make functional advertisements
that will show and demonstrate its functions and properties well enough for our customers to
understand its functionality. We do not aim to spend too much on promotions but only enough to
reach our potential customers. We will also send our prototypes to our business customers so that
they can test and try Volt Bank and if they like our product they can order more.
Distributions:
Volt Bank will sell its products through intermediaries such as wholesalers or distributors and
retailers. We will sell our products through outlets such as Jalal sons, AL Fatah and Hyper star to
consumers. For instance, in Lahore we can sell our products through retailers and distributors in
Abid Market which is a place where we can cater B to B and B to C customers. An advantage of
this approach is that we will not need to own as much of the distribution channel.
Sales process
Firstly we will find potential customers and find out if they have a need for our product and also
if they are able to afford them. Then we will have our employees trained to make good relations
with our potential customers. We will gather information from the market; weather or not there is
a need, how much are people willing to spend, what to consumers want from our products, what
they think of solar powered power banks. Then according to the information collected, we will
focus on the requirements of the customer. After this our well trained team will approach the
interested buyers, in case of B to Be a personal level meeting is required, face to face works best.
In this scenario we will also present our clients with a prototype product so they can make
judgments on trial basis. Our employees will demonstrate the customers on how to use to the
product, how to get the maximum use out of a solar powered power bank, the ways to charge it
and its various functions and uses will be shown. Once we have shown all that to our clients, we
will ask for a feedback where we can answer the client’s questions and concerns and address
their issues accordingly. Since we will be a new company with a new product we can also offer
discounts and offer something extra such as warranty of the power bank for 2 years in case of
any damage. Once our team has fully done their job, they will follow up with the clients; keep in
contact with them for future business and maintaining a good relationship as well as business
referrals.
Sales tactics
Our sales tactics are going to be how we move forward with our marketing strategy. Through our
tactics we will be able to generate excellent sales and maintain good relationships with our
clients. In the case of Volt Bank we will develop a habit of following up with each customer. We
will keep a team which will remain available 24/7 on our helpline. Since our main target is
hospitals there can always be an emergency at any hour of the day. Our team will guide them and
solve their problems. We will also take customer feedbacks so we can fully satisfy our customers
and this way we can make our customers feel as if their opinions and concerns are respected and
acknowledges. We will demonstrate Volt Bank’s uses and show customers how their needs can
be satisfied with one product.
Chapter VIII: Operations plan
Once a business is established, we will look into the process of operations planning through
which we will improve day-to-day processes of our business.
Volt bank is going to be a product that will be manufactured in Lahore. However, not all
components will be manufactured locally, for example we plan on importing the solar panels
from China as it will be better in quality and Pakistan imports more than 95% of solar panels it
uses. The battery inside the power bank will be manufactured at our own plants. Furthermore, we
will focus on establishing relations with distributors and retailers as initially we aim our
company to be business to business. The essentials of operations are going to be as follows:
Initially we will indulge in Business-to-Business marketing. Our main target is going to be
hospitals.
Our manufacturing plant will be located in Lahore.
Volt Bank will be sold through retailers and distributors such as AL Fatah, Hyper star, Abid
market in Lahore, initially we do not aim to sell directly through an outlet.
We will have an entire sales team dedicated to sell Volt Bank to other institutions by
demonstrating its functions and uses.
Incase our customers are uncertain about buying Volt Bank; we will send them a prototype so
they can test the product first.
Our aim is to solve problems faced because of power crisis and to provide convenience to our
customers.
Since we will be dealing with other businesses (such as hospitals) we will also offer discounts
and offers to increase sales.
The labor at our manufacturing plants will first go through a training program in order to ensure a
perfect assembly line.
We will have various departments within our company, including HR, finance and accounts,
sales, marketing, manufacturing etc.
Chapter VII: Design and Development Plan
Volt Bank can charge smartphones or smart devices wirelessly in a short range of distance. This
device depletes the use of cables, no need to sit around the phone and viable in a very specific
position just to make it charge. Volt Bank utilizes non-conventional source of energy (solar cell)
to wirelessly charge the device. Wireless charger increases life span of mobile in compare to
ordinary charger.
Components used in a Solar battery charger:
A) Volt Solar panel
B) LM317T- Regulator
C) Resistor
D) 4 rechargeable batteries
Solar Panel
There are two main categories of Solar panels: Crystalline type and thin film type.
Crystalline is sub divided into two more parts. Monocrystalline solar panels are made from a
large crystal of silicon. They are the most efficient and most expensive panels. Poly-
crystalline solar panels are made from multiple silicon crystals. They are less efficient and
also less expensive than monocrystalline panels. Lastly, thin Film solar panels are thin and
flexible. They are cheaper and are not affected by shading. Volt Bank uses TYN355-366
type solar panel. The capacity of this type of solar panel was 5V (volt) and 5W (watt).It
could able to supply 800-1000 mA current which was required for charging a battery
(mobile, camera, speakers, GoPro etc.) Solar Panel is the packaged, connected assembly of
solar cells. Solar panels use light energy from the sum to generate electricity. Whereas, a solar
cell is the basic building block of Solar Panel. The solar cell is made up of semiconducting
material silicon.
LM317-T Regulator
Lm317T is a voltage regulator meaning it is an electrical regulator designed to automatically
maintain a constant voltage level. Solar energy is always fluctuating so by using this regulator
Volt Bank can have a constant output.
Lm317 is an adjustable three terminal positive voltage regulator which is capable of supplying
more than 1.5A over an output voltage range of 1.25V to 37V. A pin diagram of regulators
used in volt bank shown below:
:
Resistor
A resistor is a passive two terminal electrical component that omplements electrical
resistance as a circuit element. The current through a resistor is in direct proportion to the
voltage across the resistor’s terminals.
Battery:
Volt Bank will consist of one or more electrochemical cells that convert stored chemical
energy into electrical energy. It consists of a number of voltaic cells; each voltaic cell
consist of two half cells connected in series by a connductive electrolyte containing anions
and cations. Volt Bank would be using two types of batteries: Primary battery (use it and
throw) secondary batery (rechargable type). Circuit diagram of Solar battery charger is
shown below:
Challenges and Risk
The most widely recognized material utilized is crystalline silicon which is gotten from quartz or
sand.It isn't characteristically unsafe, however parts of the assembling procedure do include
poisonous synthetic concoctions and these should be deliberately controlled and directed to
counteract natural damage.The quartz is removed from mines. A possibly hurtful side-effect
related with the mining and handling of quartz is crystalline silica dust. Volt Bank producers use
fastens that contain lead and different metals that whenever discharged into nature can present
ecological and health risks. The main risk that is involved in the development of Volt Bank is
that Silica dust has been assosciated with silicosis which is a lung disease where scar tissues
form in the lungs and reduces the ability to breath. Other health challenges include obstructive
pulmonary disease, lupus, rheumatoid arthritis and renal disease. Silicon along with polysilicon
transform into hydrogen chloride gas which is bery harmful to the human skin when exposed to
open air so handling and disposing of these acids require extreme care. Moreoever, Lead present
in solders is highly toxic to the central nervous system, endocrine system, cardiovascular system,
and kidneys Lead accumulates in landfills and thus discarded solar PV panels which contain lead
have the potential to pollute drinking water. However, other challenges include land disturbance
which is caused when solar energy facilities require large areas for solar radiation collected when
used to generate electricity for example at a capacity of 20 MW. Since large area of land is
occupied, it displaces the traditional uses of land.
Management Team
Since our product, Volt Bank is comparatively new in the electronic market we will
start with a small team. This will be divided into into two departments which will be
interlinked and these departments will be managed by the respective board of
directors.
This department will be headed by Rabia Ayub who will be incharge of overlooking
how the physical aspects of Volt Bank is running along with the process of the
outsourcing and insourcing other employees which will eventually make sure that
structure of our company in aligned in a professional manner. Moreover, all the
financial projections will be handled by Rabia along with other hired emplyoees who
already have some experience in this department. Financial projections would be
structured with proper ratio analysis to keep track.
Board of Directors
Since our company is new initially we will only have two boards of directors who will
have equal share in the market.
Mahnoor Mazhar (Director Marketing and Media)
Rabia Ayub (Director Finance and Operations)
Board of Advisors
Ms. Tania Hassan (SME and Entrepreneurship instructor)
Fixed Costs:
Rent: 200,000
Salary labor: 20,000
Salary sales team: 250,000
Marketing expense: 100,000
Trademarks: 300,000
Tax: 481092
Interest: 157292
Total Fixed cost: 5838212
Variable costs:
Raw materials: Electricity: 150,000
Battery: 3000 (>20,000mAh) Total variable costs: 7625852
Switch: 400 (4)
Capacitor: 100 (2)
USB ports: 1200 (4)
Bulb: 10 (1)
Wire: 200 (4yards)
Solar panel: 2500 (1 piece)
Bolt & nut: 200 (10)
Packaging: 30 (1 box)
Break Even:
Income Statement
Balance Sheet:
Cash Flows
Financial Ratios