PROBLEM SOLVING:
What is the problem?
In a country like India where education is a luxury, children fail to study due to many factors. Namely, lack of schools, resources, teaching faculty, and appropriate stationery.
Target Customers-
Government Schools
Parents of students in slum areas
Innovative Product Solution-
We aim to solve one of these problems by providing students with a bag inclusive of a writing pad, a ruler, a sharpener holder, detachable compartments along with it being water-proof.
Demo Video
Business Plan
We will be selling our bag for Rs. 199. We have used cost plus pricing strategies to determine our market price . We have had the costing of our product as follows-
Since We have adopted cost plus pricing strategy, we add our minimal profit of Rs 9 and hence the final market cost of the product amounts to Rs 199.
Our margin of profit is Rs 9.
- Labour / Tailor – Instead of employing tailors, we thought of entering into contracts where they are paid Rs 125 per bag.
- Raw Material – This includes the cost of flex, writing pad, hood , keys and chains ,etc. This amounted to Rs.50.
- Indirect Expenses – This includes transportation, warehousing and advertisement expenses Rs 3 , Rs 2 and Rs 10 per bag respectively . The total amounting to Rs 15 per bag.
Since We have adopted cost plus pricing strategy, we add our minimal profit of Rs 9 and hence the final market cost of the product amounts to Rs 199.
Our margin of profit is Rs 9.
Customer Feedback
|
|