1. Project Report Presentation
“The toy Soap”
Gulraiz Ahmed
Sabir Aslam
University of education Lahore

2. Outlines
1. EXECUTIVE SUMMARY:
2. INDUSTRYANALYSIS
3. THE SIZE OF THE SOAP INDUSTRY IN PAKISTAN:
4. MARKETING PLAN
5. COMPETITION ANALYSIS:
6. TARGET MARKET
7. PROJECTED DEVELOPMENT COST
8. TOTAL WORKING CAPITAL (PER MONTH)
9. PROFIT ANALYSIS & RATIOS

3. 1. Executive summary:
 The soap industry in Pakistan is at the high growth rate and many new entrants are
planning to launch their product in this category. The market has been segmented
according to geographical locations. It further differentiates these segments into
Socio Economic Cluster (SEC) which takes into account the criteria of education
and profession which ultimately measures the financial ability of consumers.
 The soap industry has a few major producers of which Unilever holds market
share of 70%. Other competing brands like , P&G and Johnson & Johnson have
started to have a strong consumer base,

4. 2. Industry Analysis
i. Industry information:
ii. Industry size:
iii. Structure:

5. ii) Industry size:
 Number of soap selling outlets has increased from 1,700 to 3,200
with a 30% annual growth and number of retailers has increased
from 60 to 160.
 In industry size, we include the number of employees, quantity
and, number of customers
i) Industry information:
This industry is related to soap industry. It attracts the 2-5 age
babies through Toy Soap. This is also a brand name.

6. iii) Structure:
 Nature:
 The nature of our business is based on providing goods and products.
 Size:
 The size of our business is medium because our business is related to only
children.
 Key success factors:
 Our business is going to be success because we will charge fewer prices from
every customer per soap because the material used in this is less costly. To
succeed in this business we must:
 Create unique, innovative soaps that will differentiate us from the rest of the
competition.
 Provide 100% satisfaction to our customers and maintaining the level of
excellent services with product among other competitors.

7. 3. The size of the Soap Industry in Pakistan:
 Products such as soap, bath, and shower Pakistan posted a net Evolution with an annual growth
rate (PAGR) of 12.7% from 2009 to 2015.
 The growing awareness in Pakistan consumer for the soap market opens new opportunities for
brands to meet user demand.
 The revenues for the soap, washing powder and synthetic detergent manufacturing industry in
Pakistan has grown at an average annual rate of 13.2% over the past five years.
 By 2015, the industry revenue totaled $ 38.8 billion, up to 9.4% from the previous year. In
addition, the high purchasing power of Pakistan consumers has led to the reduction of the price of
the products. In addition, there are more than 4,000 manufacturers and distributors throughout the
country that have supported the development of the distribution network in urban and rural areas.
 One of the factor which that increase the demand for Toy soap is that its shape , because these
soaps are made in toy forms, babies attracts toward this products while taking bath and also have
fun.

8. 4. Marketing Plan
 Segments:
 Geographical:
 Demographical:
 Psycho graphical:
 Behavioral:
 Overall Marketing Strategy:

9. Segments:
 Baby toy soap will be marketed to people on the basis of demographic and
geographic characteristics.
Geographical:
Geographical characteristics include city, population destination, climate,
country, religion. We will segmented our market on following
City.
Climate.

10. Demographical:
 Demographic characteristics include age, sex, occupation, education, income and race. We will
segmented our market on following
 Gender
 Age
Psycho graphical:
Psycho graphical characteristics include value, attitudes, interest,
personality and life style. We will segment our market on
followings:-
Interest.
Value.

11. Behavioral:
 Behavioral characteristics include benefits, patterns and usage rate. We will
segmented our market according to this segment are
 Benefits.
 Usage rate.
 Patterns.
We chose Direct marketing for sale our products. We chose
this marketing method for which we can convince our
customers toward our products, also aware them about the
salient specifications of our products as compare to our
competitors.
Like as, babies can have fun while taking bath, it also be a
part of your decorations.
Overall Marketing Strategy:

12. 5. Competition analysis:
 We analyze that our business creates monopoly. If competition will occur in future, we
ensure you that our business will be successful and we will provide better services than
others.
After evaluation of various segment “BABY ATTRACTIVE SOAPS"
has decides to target market of urban areas.
6. Target market:

13. 7. Projected development cost:
Sr.
No.
Cost Items Total
(000)PRs
1 Land lease value 315
2 Building and Civil Work 1,800
3 Plant Machinery and
Equipment
12,00
4 Office Furniture and
Equipment
60
5 Vehicle 550
6 Pre-production Expenditure* 995.2
7 Working Capital 2,574.8

14. 8. Total Working Capital (per month)
S.No description Amount
1 Rent 1200
2 Salary and wages 6000
3 Raw materials 47400
4 Utilities 2200
5 Other expenses 5000
Total 61800

15. 9. PROFIT ANALYSIS & RATIOS
 Net Profit Rs. 61156
 Percentage of Profit on Sales 7%
 Percentage of Return on Investment 42%
 Break Even Point 62%

16. Profitability
 According to the projected income statement, the project will start
generating profit in the first year of operation. Important ratios such as
profit to total sales, net profit to equity (Return on equity) and net profit
plus interest on total investment (return on total investment) show an
increasing trend during the lifetime of the project.
 The income statement and the other indicators of profitability show that
the project is viable.

17. Break-even Analysis
 The break-even point of the project including cost of finance when it
starts to operates at full capacity ( year 4) is estimated by using income
statement projection.
 BE = Fixed Cost = 49.4 % Sales – Variable cost

18. Based on the cash flow statement, the calculated IRR of the
project is 16.85 % and the net present value at 8.5% discount
rate is PRs 8.5 million.
The investment cost and income statement projection are used to project the pay-back
period. The project's initial investment will be fully recovered within 2 years.
Pay-Back Period
Internal Rate of Return and Net Present Value