Proyecto Final - Camisetas Peru.docx

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:         1.2)

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

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.