Industry Structure of ICE a project report

Submitted by: Ashish Dutt Chinky Nagpal

Introduction about the Project

About ICE y Overview of ICE
y
Introduction Mission and Vision

Market & Industry Analysis

 Size

of Indian Education market  Trends in Education  Target Market  Competition & opportunity

Marketing plan
Target Market Strategy y Product/Service Strategy y Positioning y Pricing Strategy y Communication Strategy y Sales Strategy
y

OPERATIONS PLAN
Operations Strategy y Scope of Operations y Ongoing Operations
y

DEVELOPMENT PLAN
Secured Funding and location y Building Permit/Renovation y Hiring of technicaly qualified staff y UGC Recognition and AICTE Approval
y

MANAGEMENT

COMPETITIVE ADVANTAGE
Universal Humanism y Superior and intellectual academic course- content y Business is Marketing
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FINANCIAL PLAN
y

There will only be one institute located in Shimla, however expansion in other cities or states go along with a possibility of its success. It will take 4 months to renovate the building and we will open in month 5 Rent cost will be Rs.1000 per sq. ft. per year which at 2500 sq. ft. = Rs. 25,00,000 per year Utilities cost approximately 6% of revenues. Labor will cost approximately 25-30% of revenues starting year 3. Furniture will cost approximately 25-30% of revenues. Marketing expenses include a TV, newspaper,journals advertisements. We will contract out a marketer, accountant, and attorney. There will be Rs.60,000 of extraordinary expense for legal fees, certification, grand opening. We will employ one administrative dean and one academic dean who will work full time. ICEs library will remain open for 24 hours and seven days for students and lecturers. The target market considered in financial projections consists of students for MBA and Engineering programmes. The percent of the target market penetrable will be 11% in year 1, 15% in year 2, 18% in year 3, 20% in year 4, and 22% in year 5.

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FINANCIAL PLAN
y

Gross Profit will center around 30% of revenue by year 3. Operating Expenses as a percentage of revenue decrease over time due to higher revenues and center around 12% by year 3. There will be 60 seats in ICEs any class-room. We will be able to raise Rs.30,00,00,000 in debt from banks, family, friends. Debt will be at a 15% interest rate, be paid years 2-4, and given warrants. We will be able to raise Rs.35,00,00,000 in equity from founders, family, friends.

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FUNDING
Sources of funds From combination of debt and equity from family, friends and angel investors equalling Rs. 65,00,00,000. Application of funds y For refurbishment of ICEs facilities. y To cover operating expenses due to high marketing expenses initially.

THANK YOU