Executive Summary: The Leatherize is about totally an online business.

The purpose of this project is to implement the triditional business online within the allocated time of -days. Different project management techniques have been used to do all the activities in time. The major part of this project is CPM i.e crithical path method and risk analysis. The entrepreneurial venture we are going to practice is to step in, in the leather business. Thisventure will help to stand up on our own feet. World leather industry is huge and never evergoing to be closed down although could face ups and downs as the history of leather products isas old as human beings are, and leather products are need more than a want of us, so thescope of leather products could never die although it might face difficulties, which is the part obusiness. Pakistan is always considered as important player of this ground since after itsindependence, Leather industries contribution towards exports is always essential part of theexports share, but importantly for last 9 years there is marginal contribution in exports. Thismay have some certain reasons important are the intense competition, new players likeBangladesh, China, Italy strong position gained in last decay. Importantly electricity shortfallraw materials prices and very importantly War against Terrorism put negative effects on leatherindustry. As said by, former chairman of Pakistan Tanners Association, Agha Saidain in apresentation given to the Ministry of Commerce recently, it was pointed out that the livestocksector was badly damaged in the war-affected areas of Fata, North Waziristan and SwatTransportation of hides and animal skins has completely stopped from the war-affected areasDespite low exports, the price of hides and skins are showing an upward trend due to scarcitycreated by the war on terror in the areas which were previously rich in livestock. The negativeperception of the country in the world community has adversely affected business and we aregetting 20 per cent less price for the same product manufactured in other countries. Price is the only attraction to the buyers who have created fences against Pakistani goods. So it shows that here are lots of problems in the industry but still is attractive one as history could repeat itselfand we believe we can get something positive out of it. Statistics shows there are considerable problems for last five years, as share of leather garments decreased from 2.39% to 2.16% in 2009/10 comparing with 2008/09. Same is the trend in other categories of leather goods, leather tend declined by .27% and other leather products only leather gloves by .07%, the same trend is in the first quarter of 2010

astrend of leather exports of leather sector, in terms of monetary value as in 2009 was 744,40400$ and in 2010 was 614,69500$ although this impression may discourage for investment but we believe that opportunities arises is difficult conditions and we all are ready to cash this opportunity by taking risk. Within the geographic boundaries of Pakistan competition in manufacturing may not intense, but in selling there is competition lies and we believe our business strategy of dealing customer according to his demand could give us an edge, as we can say, We are the Leather Tailor. At the same time we will focus on bulk quality productions for our business clients. We believe our two dimensional strategy give us competitive edge over our competitors. As our main target market is the International market which is an attractive one as earnings in dollar contribute a lot in ones pocket. We will contact our international clients through websites and also planned to participate in exhibitions around the globe, although it is difficult one and our limited resources may create hurdle but it is essential for business development to have direct access to your clients, so Future plans are there for expansion with increasing our products demand in market. We are ready to run in the field of entrepreneur, ready to take the risk, not ready to freeze our feet in the slavery of job.

Acknowledgement

In the name of Allah the most beneficent and the most merciful.

We are very thankful to everyone who all supported us, for we have completed our project effectively and moreover on time. We are equally grateful to Sir Fayyaz ur Rahman. He gave us moral support and guided us in different matters regarding the topic. He had been very kind and patient while suggesting us the outlines of this project and correcting our doubts. We thank him for his overall supports. Last but not the least, I would like to thank our parents who helped us a lot in gathering different information, collecting data and guiding us from time to time in making this project . This project would not have been possible without the support and dedicated work from the Shehzaib Sunny owner Leatherize Sadar Rawalpindi. We would like to thank this institution for their contributions to this Project.

CH 1: Introduction
1.1 Vision

Our vision is, "To leatherize our customers and make Leatherize a Leading and Customers favorite brand."

1.2 Mission

Our mission is to be a leading Brand of Leather Products in international market and Create highly delighted and loyal customer base by catering a wide variety of customers through a wide range of quality products.

1.3 Objectives

Deliver the best value to our customers. Fast delivery of products. Provide customers a wide range and variety of leather products to our customers. Which range from jackets to shoes, bags and other accessories. Customization, we deliver products according to customer's needs, wants and demands. Introducing latest and unique fashion with time. Products will be supplied in reasonable prices, keeping various types of customers in mind. To provide customers a friendly and professional environment where customers can do repeated business comfortably and without any hassle.

1.4 Core values

This is our overriding value. In our line of business, there is no compromise.

We recognize that our success as an enterprise depends on the talent, skills and expertise of our people and our ability to function as a tightly integrated team. We appreciate our diversity and believe that respect - for our colleagues, customers, partners, and all those with whom we interact - is an essential element of all positive and productive business relationships.

We will succeed or fail as a team. Each one of us must respect our colleagues regardless of their rank, religion, gender and nationality, and we must work together to ensure our mutual success.

2.0 Company Summary

Established by a Young Entrepreneur, Leatherize is a leather products exporting Brand which consists of highly motivated and innovative people on board to formulate strategies and create wide range of products that makes the customers delighted. As we have competitors all around us. So, everyday, we strive to break the record we set day before. We continuously upgrade our processes and enhance the quality of our products and services, striving harder to satisfy our clients/customers. As we measure our success in other ways, we see it in the eyes of our customers and feedback of our clients and distributors. We are a customer oriented company, which constantly strives to improve products quality, create new and innovative products for our target markets. Our venture onto the internet through our website is very exciting as it will permit us to expand our marketplace and promote greater awareness of our products.

2.1 Company Ownership

Company is owned by a young entrepreneur Shehzaib Sunny. Who is very much keen, ambitious and hardworking to make Leathrize a successful and global brand. The company is going to be registered as Private Limited Company.

3.0 Products and Services

Leatherize's main purpose is to Leathearize its customers with its wide variety of products. We want customers to use our products from clothing till carrying leather bags and using other leather made accessories for regular use in their routine lives. We will be providing high quality products to customers while keeping in mind the customer's comfort, fashion and affordability. The core products we will carry are:

Leather Jackets Motorbike suit and jackets Ladies handbags and saddle bags Leather shoes Leather belts Leather wallet Leather gloves Other leather accessories (caps, hats, holsters, cellular case)

Company will give online sale services for its customers to access the global market. Customers can order through company website for customize their products. Initially we would be only giving the "send an inquiry" option to customers but later on we will We are also giving shipping facility or service for the delivery of goods on behalf of customers. We will also give the "order tracking" option to customers in future.

We will also set up an online customer care helpline through which customers will just need to make a free Skype call in order to get their queries and problems solved.

Moreover customer's suggestion and comments would also be highly appreciated as there would be a proper part devoted on our website where customers would be able to share their experiences.

4.0 Market Analysis Summary

Industry Analysis: There are about 350 leather garment manufacturing units in the organized sector in the country. Total annual installed capacity of these units is estimated to be 15 Million leather garments (of all kinds) per annum. Similarly there are estimated to be around 1,000 medium and small size exporters of leather. But none of the companies from Pakistan has emerged as a successful Leather products Brand in International market.

Business Trend: Leather product is a fashion symbol for teenager and youth generation in the western world like USA, Canada, Germany, France, Belgium Italy and other European countries. Now a these days every business is facing decline due to the global crisis but in future it is predicted that the winter season period is increasing as compare to the summer. Leather products are treated as fashion symbol and to protect the bodies against cold. So we have forecast that the future need/trend is bright due to the above two reasons.

Total Market Size:

95% of the leather garments manufactured in the country are targeted towards exports. In 2003, an estimated 8 million pieces of leather garments were exported from the country. Local consumption of leather garments is minimal and is estimated to be less than 90,000 pieces per annum.

Total Customers: Export market is the primary market for Leatherize. In the export market, major customers

include chain stores and major garment brands in Europe and USA. Major customers of Pakistani leather garments are Germany, USA, United Kingdom, and & France. The business is done either directly to the buyers or through middlemen. So we will also be looking for some intermediaries and agents in the targeted countries.

Competitors Analysis:

It is very important to analyze the competition environment of the industry in order to compete successfully. It is good for strategy making to identify the strengths and weakness of competitors and try to differentiate itself from them.

Our main focus is to export Leatherize's goods in International market. Indian leather exporters are our rivals because they have high market share in leather goods in international market. We shall also target the South African market where quality is not issue because they are price consciousness.

Direct Competitors:

All international competitors:

China Bangladesh India Italy

Indirect Competetors:

The rexion goods exporters are also main competitors in the international market.

Market Segmentation:

The main target market for Leathrize is International Market which includes USA, Canada, Germany, France, Belgium Italy and other European countries. Further it can be divided into following

Individual/ single consumer Business customer

Individual consumer are those who will purchase small amount of items(more than 5 at least) for their personal use and business customers cover all the wholesalers, retailers and others business who will sell them to their customers.

Market Industry Forecast:

Local industry is facing difficult times today. During July-November 2008-09, the leather exports of Pakistan faced a decline of 27 percent while India, which exported 43 percent more leather garments, witnessed 27 percent increase in its leather exports during the same period. Indian government is giving rebate to the exporter so it decreases the cost of producers. Global recession is also another reason for decline in exports but now government of Pakistan is also thinking about rebates and tax relaxation to the exporters. So it can boost our economy as well as leather industry particularly exporters. Basically demand is divided into two parts as: Seasonal Demand 365 day demand

Every business has its seasons for demand so leather products have also seasonal demand. It covers some states of USA. In 365 days demand all those countries where winter season is longer as compare to other so in these countries products is demanded always. (UK, Canada & Russia etc)

4.1 Market Segmentation:

Market Size:

95% of the leather garments manufactured in the country are targeted towards exports. In 2003, an estimated 8 million pieces of leather garments were exported from the country. Local consumption of leather garments is minimal and is estimated to be less than 90,000 pieces per annum.

Target Customers:

Export market is the primary market for Leatherize. In the export market, major customers include chain stores and major garment brands in Europe and USA. Major customers of Pakistani leather garments are Germany, USA, United Kingdom, and & France. The business is done either directly to the buyers or through middlemen. So we will also be looking for some intermediaries and agents in the targeted countries.

Competitors Analysis:

It is very important to analyze the competition environment of the industry in order to compete successfully. It is good for strategy making to identify the strengths and weakness of competitors and try to differentiate itself from them.

Our main focus is to export Leatherize's goods in International market. Indian leather exporters are our rivals because they have high market share in leather goods in international market. We shall also target the South African market where quality is not issue because they are price consciousness.

4.2 Target Market Segment Strategy

Leatherize will launch its website which will have photographs and slight descriptions of the wide range of products introduced by Leatherize. So customers will be asked to refer Leatherize's website for the product details, inquiry and ordering the products.

At Leatherize, we will approach our target market by using two types of means

Internet:

By using Internet we will send emails and contact the customers using skype and other online contact options that will be available. As we will be targeting the medium and small sized stores in beginning so we will visit their websites and will give them the sales pitch according to their taste and choice. As in the initial stages it would be highly profitable for Leatherize to get involved in B2B transactions, as this will also provide us and debut into the international market and will also create a name of our brand in the market. Moreover our team would also be finding some customers on various other online platforms like business chartrooms, business communities, Blogs and especially the social media Facebook and twitter etc.

Agents:

Though the internet provides an instant and convenient method to communicate with customers but the importance of face to face meeting with customers can not be neglected. So Leatherize will be appointing its trusted social and business circle personnels to work as agents of Leatherize. Their job will be representation and market of Leatherize brand. We would be choosing keen, enthusiastic and ambitious people for this purpose and these agents will be paid a predetermined commission on every sale order they bring for Leatherize.

5.0 Web Plan Summary

On the website all our main products will be displayed along with the article number and the description. But if customer still have any further questions about any product than there will be option on the website through which customer will be able to send us his or

her concerned problem. We will also use our website for communication with customers and user accounts will be given to our trusted and regular customers, due to which they will be able to enjoy few more protocols as compared to the guest visitors on the website.

5.1 Website Marketing Strategy

The main source of marketing for the Leatherize will be using internet. There will be several tactics used to do marketing of leatherize's products. Company will give online sale services for its customers to cater the global market. Some of the features used in the website would be

Send an Inquiry Customers can order through company website for customize their products. Initially we would be only giving the "send an inquiry" option to customers but later on we will We are also giving shipping facility or service for the delivery of goods on behalf of customers.

Orders Tracking Service We will also give the "order tracking" option to customers in future. With the help of this service customers would be able to track their shipments by just entering their product shipment number. This will save customer's time by using the link on our website rather than visiting the logistics providers website.

Skype ME We will also set up an online customer care helpline through which customers will just need to make a free skype call in order to get their queries and problems solved.

Customer's Corner Moreover customer's suggestion and comments would also be highly appreciated as there would be a proper part devoted on our website where customers would be able to share their experiences.

Presence on Social Medias Leatherize will keep its presence on social Medias to keep in touch with its customers and providing them latest updates about Leatherize. Social Medias like Facebook , Twitter etc will be especially used.

5.2 Development Requirements

For the development of our website we would be using Drupal an open source CMS (Content Management System). Basically, Drupal is an open source content

management platform powering millions of websites and applications. It's built, used, and supported by an active and diverse community of people around the world. Though it is not very hard to develop a website using CMS but one must have some computer and IT skills. The cost on the development would be absolutely zero and some technical help will be taken by the peers and teachers.

6.0 Strategy and Implementation Summary

The basic Strategy in this business is to do business with customers money. The business model which is involved is very efficient and needs very less investment. Whenever, the customer will order a product/product sample than we will demand at least 70% of total payment in advance. Usually in that 70% of payment we will be able to cover up all our direct and indirect costs due to which the risk of loss will be reduced even in the case of bluff or fraud from other party.

6.1 Competitive Edge

As we are a group of young professionals so we believe that with the level of our customer service and product quality we will e able to gain competitive advantage over our customers. Moreover we will make our website such user friendly and add some unique features which will give us competitive advantages over the other players in market.

But in the talking in real terms we will introduce unique and most fashionable products in our product line that will totally fascinate the customers and will provide us the competitive advantage over our competitors. Currently the people who are providing the customized products are providing them at very high rates, so we will offer our customized products at competitive rates than our competitors. Last but not the least one of the core values at Leatherize is to provide Quality products to customer, so we will

definitely provide high quality products to customers at reasonable prices.

6.2 Marketing Strategy

The main marketing done in our business would be firstly by sending emails and contacting the Business customers i.e. emailing the medium and small sized stores. Other technique used for marketing would be sending the Leatherize's representative. Another tactic used for marketing of Leatherize would be using the business people chartrooms, social Medias, blogs and community pages.

6.3 Sales Strategy

After targeting the customers net task will be selling the products to the customers. This process can be divided in to various steps.

Replying customers inquiry:

Usually when customer is interested in a certain product, he/she will send an inquiry to Leatherize. After which we will contact our suppliers for the production of certain product according to the specifications and instructions of customer. After which an estimated amount of the per unit cost and shipping amount are sent to customer, after which customer chooses to buy from us or not.

Sending Customer a product sample:

If customer is ready to buy a certain product from us and he demands for a sample of a product. Than firstly we charge customer the sample fee in advance after which we will make a sample product and send it back to customer for inspection.

Execution of the customers order:

If the customer passes the sample and wishes to purchase a certain product from us but in larger/ bulk quantity than we will charge 70% charges of production and cost to customer in advance along with the freight charges and then the production is started.

Logistics:

After the completion of the production process we will dispatch the customer's order to his/her desired destination. The customer will choose the delivery options according to his or her choice. Like economic, urgent, normal etc

Client feedback and follow up:

As leatherize has a very firm belief in customer satisfaction so after the order is being delivered to the customer, we will contact the customer for the feedback. We will also take and note the customer's suggestions and complaints, if any.

Our sales strategy will be built around fully educating customers about their purchases. Sales people will take care of customers on a first come first serve basis. We want to build customer relationships without discriminating other potential future customers.

7.0 Management Summary:

The Owner of Leatherize, Mr.Shehzaib Sunny will also be the operator and sole decision maker. The philosophy behind the workforce will be total customer satisfaction. Since many customers are not aware of the many facts and have less information about leather products, so employees will be encouraged to continually gain new knowledge and insight in order to fully satisfy customer's needs and wants.

Agents

There would be sales agents employed in foreign countries that will be handling the sales and will be deliver the products to the customers. These agents will be given commission on the predetermined percentage of the sales.

Supply Chain Manager

One of the people from the management will be responsible for dealing with the product's suppliers and the logistics operations and that person will be Supply chain Manager.

IT Helper

There are no complex computing skills needed in the beginning of the website so initially the owner of the business will create and manage the business website by him. Moreover other IT related problems will also be solved by the Owner of business, himself. But if needed than the help of professional experts will also be summoned in later stages of business.

8.0 Financial Plan

Leatherize will require a very low initial investment for starting the business. As the website will be developed free of cost using an open source CMS (Drupal). But the main investment would be on the marketing of the Leatherize and other minor legal fees for registration and expenses.

The Initial cash required for the Hosting of website would be around Rs.3, 000 and Rs.3, 000 would be required for registration of the business.

Chapter 2 Market Analysis:

Chapter 3 Methodology of project:

Implementing a Traditional Leather Products Business Online (Leatherize).

E. F. G. H. I.

B B A,B,F A,B,C,F,G D,E,F

10 5 20 2 2

J. K. L. M. N. O. P.

F, H, I I,J I,J,K H, I,J,K H,I I,J,K,L,M,N O

5 2 4 2 1 5 1

Q.

R. S.

T. U.

V.

W.

X. Y. Z. AA.

BB.

CC. DD.

modules Preparation of database of customers Marketing through social media. Data Base Management System CRM Software Supply Chain Management Software Inventory Management Software Accounting Management Software Integration of all software Linking all software to website Forecasting sales Ordering products according to demand Maintaining record in inventory management system Installation of backup server. Update information in website

P,H

H, O, Q O,Q,R

15 10

O, Q,S O,Q,S,T

7 10

O,Q,S,T,U

15

O,Q,S,T,U,V

S,T,U,V,W O,P,S,T,U,V,W R,S,X,Y U,V,W,Z

10 5 5 5

V,W

O,S,T,U,V,W,X,BB O,X,AA,BB, CC

5 30

Critical Path = A, B, F, G, H, J, K, L, O, P, Q, R, S, T, U, V, W, X, Z, AA, DD.

CP = 10 +15 + 5 + 20 + 2 + 5 + 2 + 4 + 5 + 1 + 5 + 15 + 10 + 7 + 10 + 15 + 5 + 10 + 5 + 5 + 30.

CP = 196 Days.

Chapter 4 and 5 Analysis and Inferences:

Risk Response Matrix

Risk Event

Response

Contingency Plan Cancel order

Trigger

Who is responsible Adeel

Fraudulent users

Reduce risk

IP address mismatch Unusual activity Customer complain Server not responding Website displaying error messages

Security risk Fulfillment risk

Reduce Transfer

Run spyware Track previous shipment Use UPS

Haseeb Rehan

Power failure

Retain

Haseeb

Processing Errors

Reduce

Check sitemap with the help of webmaster and online programmer. Optimize site map. Use alternative credit card or PAYPAL

Adeel

Credit card Authorization issues

Transfer

Error message There is a problem with your credit card authorization Customer calls in saying he/she did not receive the refund Customer

Haseeb

Refund customer not identified

Reduce

Make a call to verify address and name

Rehan

Chargebacks(Refunds) Transfer

Have a clear

Adeel

Refund policy

complains about the product not worth what they paid for Some customer complain start complaining that our website is not original. Haseeb

Copycat websites

Reduce

Contact offending website through email. Send complain to copycat website hosting company

False customer claims

Reduce

Verify with the shipping company if the customer has received the order or not Implement an Intrusion Detection System (IDS), and to configure it to scan for both external and internal attacks

Some customer calls saying they havent received the product when actually theyhave received it Unusual of suspicious activity on the website such as incorrect information being displayed on website

Rehan

Hacker finds a way into the system

Reduce

Haseeb

Chapter 6 Conclusion and recommendation:

Chapter 7 Biblography:

Appendices: