Amity Business School

BUSINESS PLAN
Stairway to Heaven

Submitted By :
Karan Modi – 21
Akhil Puri – 51
Sidharth Rinwa – 50
Arashdeep Singh – 27
Ashrut Garg – 32
Vivek Khanna – 13
 Executive Summary Amity Business School

• Business Concept – Customised pet

Memorial Services.
• Company Name – Stairway to Heaven.
• OBJECTIVE
The objective of our company is to provide
people a mental satisfaction that their pets have
a decent departure.
• “Stairway to Heaven” is a manufacturing/trading
company dealing in domestic supply of
customised pet caskets along with customised
tombstones and custom woodworking.
 Amity Business School
• We are mainly retailers and manufacturers of quality and affordable
customised pet coffins and tombstones in the Delhi/NCR region.
• Our mission is to produce useful works of art that can bring healing to those
who have suffered loss since pets are a part of our life. To some they are our
children and to others they are a best buddy and companion.
• Pets are one of Gods greatest gifts, they give us pleasure unconditionally,
they put their total trust in us to take care of them even after death and they
deserve the respect and dignity as one of the family.
• This is the right time to start because the market is in its budding stage
globally, and is nearly un-touched in India, giving us a first mover advantage.
People are aware of such products available in the western world and are
trying to make ends meet just to provide a dignified fareewell and preserve
their memories forever.

Our product directly meets the unmet needs of consumers wanting a

guarantee of purchasing the best quality products at the lowest rates
possible. Best quality of wood along with the finest craftsmanship is as
good as you can get. It’s a niche market and if worked upon correctly
can change the complete trend in memorial services.
 The Company Amity Business School

• We have dedicated our lives to helping those who have lost a loving

and devoted pet by offering you some of the finest pet caskets
available in the market today. We take great pride in making sure
each and every pet casket is built with the highest standards and
best quality materials.
• It took a visionary and a great loss to help come up with this great
approach to help the people who are grieving about the loss of their
loved ones. We are sorry that you have suffered the loss of a much
loved pet and hope that we can help you in remembering them.
• Our products are built, painted, and lined to your specifications as it
is not appropriate to build one size for all types of pets. You have a
wide range of products to choose from and can do so by
conveniently choosing from our online catalogue the best fit for your
deceased pet.
• As already mentioned we provide the best quality wooden caskets
lined with tufted plush satin. Also every lace lined pet pillow and pet
cover is meticulously sewn and carefully matched to your order. To
make the experience more memorable we have a wide variety of
customised tombstones as well with special messages that can be
carved at your will.
 The Company Amity Business School

• It is becoming increasingly common for owners to want to continue to

treat their pets as individuals and insist on private, dignified arrangements
for their farewell as you would with any other member of your family.
• This piece of work ensures that your beloved has a dignified resting
place.

Management Team : Our management team comprises of people with great

potential and talent with excellent team building skills. All the members
have explicit experience in their field of the job description and will act as
the perfect pillars for the business to grow upon.

 CEO – Vivek Khanna

 CFO – Karan Modi
 COO – Akhil Puri
 VP Sales – Ashrut Garg
 VP Marketing – Arashdeep Singh
 Chief Strategic Planner and Legal Advisor – Sidharth Rinwa
 Products Offered Amity Business School

• Box casket

• Bone-shaped casket
 Amity Business School

• Basic Coffins

• Customised caskets/coffins (By order)

 Also offering Amity Business School

• Customised Tombstones
 Cost and Pricing Amity Business School

• Cost of 1 stone slab = Rs. 200

• Cost of Engraving customised messages = Rs. 100
• Total Cost of a standard (rectangular) Tombstone = Rs. 300

– Our Price = Rs. 500

• Cost of 1 Wooden Board = Rs. 700
• Cost of Engraving customised messages = Rs. 150
• Cost of Polishing the tombstone = Rs. 200

• One board is sufficient for making 2 wooden tombs. So total cost of a

standard (rectangular) wooden tomb = Rs. 1200

• Therefore Cost of 1 Wooden tomb = Rs. 600

– Our Price = Rs. 850

 The Market Amity Business School

• 1lac registered dogs in Delhi/NCR

• 1.5 lac (Approx.) unregistered PETS
• According to a research conducted by Research and Consultancy
Enterprise (RACE) of Institute of Management Technology (IMT),
Ghaziabad the population of dogs in households is increasing by 26%
every year.
• The pet industry in India has an estimated revenue earning potential of
350 crore. But of this around 250 crore is
contributed by pet foods and the remaining 100 crore comes from
grooming and healthcare sector.
• Rising steadily at the rate of 10-15 %
• Virgin market for pet products and services.
• About 50% dogs are above 4 feet; 40% are in 2-4 feet and 10% are
below 2 feet.

Source : Euro monitor (research firm)

Amity Business School
 Amity Business School

Market Strategy Development

• PRODUCT
To provide caskets according to the needs of the customers for their
pets.
• PRICE
Different prices for different sizes and styles.
• PLACE
Currently we are only looking at the Delhi/NCR region since delivery to
other places might take some time.
• PROMOTION
Since this is a product that could evoke sentimental feelings of people a
high scale advertisement and promotion campaign cannot be
undertaken.
• PEOPLE
2 Executives with good communication skills who would be able to
explain the product and its features to the customer.
 Customers Amity Business School

India Advantage:
• The population of pets is quite high.
• Size of the pet industry is also huge and India shows up in the top 25
countries globally in terms of expenditure on pets.
• This share is also on the rise of 10-15% annually.
• Demographics are also in favour of India :
– The affluent section of the urban population – the 350 million strong
middleclass that we hear of so much – is the major target segment for pet
products in India.
– The vast majority of pet owners in India are high-income households, with
dogs being the most
popular pet choice at over 55 percent of the pet
population, followed by cats.
– According to the American Express, the cumulative liquid wealth of
affluent Indians is projected to reach $357 billion by 2010, a growth of 63%
from 2006.
– In 2006 there were 711,000 individuals with liquid wealth of $100,000 or
more. This number is expected to reach 1.4 million by the end of 2010.
– Initially we cater only to the Delhi/NCR consumers but as we grow, we
target other major cities as well.
 Features & Benefits Amity Business School

Features Benefits
We believe in providing the customers with the best
High Quality possible quality of products so that they do not feel
Products cheated at such a critical time in their life. The loss of a
loved one is hard at such a time the only means of
satisfaction is that there is someone there who cares
about their pets as much as they themselves do.
Since each and every pet is different so why should the
Different Models casket be the same for everyone? For catering to every
and Sizes owners needs we have 3 standard models to choose from
and the customisation option is always there. Along with
that based on the size of the pets also there are 3
standardised sizes.
Since wood is biodegradable the product we offer is 100%
Environment bio-degradable since we don’t want polluting the
friendly atmosphere and encourage sustainable living.
With our nominal prices and customisation of the products
Flexibility in according to the needs of the customers, we believe that
Design and we build relationships rather than customers. We also
have the option of online retail and free home delivery
Service option for certain products.
 Amity Business School

SWOT Analysis
• Strengths • Weaknesses
– Quality – Lack of awareness
– Satisfaction initially as low
– Affordable pricing advertisement
– No burial grounds

• Opportunities
– First mover advantage.
• Threat
– Pets – part of the – Competition may follow
family. – Lack of Consumer
– Growing Market Acceptance
 Amity Business School

The Products

Caskets/Coffins Tombstones

Standardised Customised Customised

3 Different Models According to the

3 Different Sizes Customers needs.
 Sizes Amity Business School

• Upto 2 feet – this is for the smaller breed of dogs

(Chihuahua, pug, etc.) and cats. The size would
be 24”x12”x12”
• 2-4 feet – this one is for the medium sized dogs
(spaniels, bulldogs, Pomeranians, etc.). The size
for this segment would be 48”x24”x18”
• Above 4 feet – all the large sized dogs are
targeted (Alsatians, Labradors, etc.). The size
would be 72”x36”x24”
 Promotion Amity Business School

• Pet Shops
• Vets
• Website
• Word of mouth
• NGOs – People for Animals; Circle of
Animal Lovers
• Tie up with Kennel Club of India – Indian
authority for registration of dogs.
 Pricing Amity Business School

• Box – Shaped
– Upto 2 feet – Rs. 3500
– 2-4 feet – Rs. 5000
– Above 4 feet – Rs. 8000
• Bone – shaped / Cross shaped
– Upto 2 feet – Rs. 5500
– 2-4 feet – Rs. 7500
– Above 4 feet – Rs. 11,500

At the various places other than direct selling from our office the
MRP list is as follows (negotiable) :

• Box – shaped
– Upto 2 feet – Rs. 4000
– 2-4 feet – Rs. 5500
– Above 4 feet – Rs. 8500
• Bone / Cross shaped
– Upto 2 feet – Rs. 6000
– 2-4 feet – Rs. 8000
– Above 4 feet – Rs. 12000
 Amity Business School

Budgeting
• CAPITAL INVESTMENT : Rs. 8 Lac

• Sources : Self Investment

• Break-up of Investment:
– Car (transport) : Rs. 3 Lac
– Advertisement and Distribution : Rs. 2.6 Lac
– Raw Materials : Rs. 90000
– Cash in hand : Rs. 1.5 Lac
 Amity Business School

Budgeting Contd….
• Advertisement/Promotion Expenses :
– Donation to NGOs Rs. 2 Lac
– Website – Rs. 30000
– Branding on car – Rs. 20000
– Printing (pamphlets) – Rs. 10000
 Finances Amity Business School

Cash Flow for the Year

Transaction In Out

Investment Rs. 8,00,000

Sales (first year) Rs. 23,47,500

Operating Costs (Rs. 14,38,000)

TOTAL Cash Flow for the Period Rs. 17,09,500  
 Income Statement Amity Business School

Revenues
Net Sales Rs. 23,47,500
Total Revenue Rs. 23,47,500
Expenses (usually sorted by amount)
Cost of goods sold Rs. 7,62,000
Selling expenses Rs. 4,32,000
Administrative expenses Rs. 1,80,000
Interest expense Rs. 64,000
Total Expenditure Rs. 14,38,000
IncomeNet Income
before = Total Revenue – Total Expenditure
taxes Rs. 9,09,500
Income taxes
Net income
 Amity Business School

Break Even Point

• This is the number of units sold where there is
no profit or no loss i.e. it covers the cost of
product.
• Expected Sales in first year = 300 units
(Assuming 1% mortality rate of which a mere
12% converted sales)
• We expect it would be in accordance with the
statistics given and 50% of the sale would be of
the big coffins; 40% of medium coffins and 10%
of small coffins.
 Amity Business School
• Total Sales in first year :
– 15 small coffins @ Rs. 3500 = 52,500
– 15 small coffins @ Rs. 5500 = 82,500
– 60 medium coffins @ Rs. 5000 = 3,00,000
– 60 medium coffins @ Rs. 7500 = 4,50,000
– 75 large coffins @ Rs. 8000 = 6,00,000
– 75 large coffins @ Rs. 11500 = 8,62,500
----------------
Rs. 23,47,500
• Operating Costs : Rs. 14,38,000*
• Total Profit = Total Sales – Total Costs
= Rs. 23,47,500 – 14,38,000
= Rs. 9,09,500
• BEP = Total Investment
Total Profit
= 8,00,000
9,09,500
= .87 years
= 11 months
 Amity Business School

Corporate Social Responsibility

(CSR)

• Since we believe in giving back to our

mother earth what we “borrowed” from her
we have decided to plant 1 tree for every
board that we purchase.
• We are true in terms of our commitment
and hope that our customers understand
this.
 Appendix Amity Business School

• Operating Costs
– 15 small coffins @ 1000 pp = 15,000
– 15 small coffins @ 1500 pp = 22,500
– 60 medium coffins @ 1700 pp = 1,02,000
– 60 medium coffins @ 2500 pp = 1,50,000
– 75 large coffins @ 2800 pp = 2,10,000
– 75 large coffins @ 3500 pp = 2,62,500
----------------
Rs. 7,62,000
– Rs. 51,000* for 12 months = Rs. 6,12,000
– Interest @ 8 % p.a. on 8 lac = Rs. 64,000
--------------------
Rs.14,38,000
 Amity Business School

• BREAKUP OF Rs 51000
Office space (Rent) – Rs. 30,000
+Salary of employees – Rs. 15,000
+ Petrol/CNG expenses – Rs. 4,000
+Website maintenance – Rs. 2,000
-----------------
TOTAL – Rs. 51,000
 Amity Business School

Product Design and Development

• Raw Material: (Box Caskets)
1. Upto 2 feet (2 pcs.)
– 1 board (8’ by 4’) – Rs. 700
– Carpenter – Rs. 400/ day (4 Pcs.)
– 1 Sunmika board (if reqd. ) – Rs. 450 or,
– Polish and Paint – Rs. 250
– Satin cloth and pillow – Rs. 300
– Handles – Rs. 50 p.p.

COST (2 Pcs.) – Rs. 2000 i.e. 1000/ piece

 Amity Business School

2. 2-4 feet : (1 Pcs.)

– 1 Board – Rs. 700
– Carpenter – Rs. 400/ day (2 Pcs.)
– 1 Sunmika board (if reqd. ) – Rs. 450 or,
– Polish and Paint – Rs. 250
– Satin cloth and pillow – Rs. 300
– Handles – Rs. 50 p.p.

COST (1 Pcs.) : Rs. 1700

 Amity Business School

3. Above 4 feet : (1 Pcs. 6’)

– 2 Boards – Rs. 1400
– Carpenter – Rs. 400/ day
– 1 Sunmika board (if reqd. ) – Rs. 450 or,
– Polish and Paint – Rs. 250
– Satin cloth and pillow – Rs. 500
– Handles – Rs. 50 p.p.

COST (1 Pcs.) : Rs. 2800

 Amity Business School

Bone-shaped / Cross Caskets

• COST :

– Upto 2 feet – Rs.1500

– 2-4 feet – Rs. 2500
– Above 4 feet – Rs. 3500

Costing and pricing for customised caskets are

done as per the needs and requirements of the
customer and may require upto 24 hours for
delivery depending on the time the order is
placed.
Amity Business School