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Slide 1: We aim to provide complete Funeral Service and Share the Loss of the loved Ones Keeping In Mind the Social, Cultural and Emotional Requirement of the Affected. Subsequently increasing Social Welfare and Value of our Stakeholders
Slide 2: Introduction • Why a Funeral Organizing Firm? - A Direct Inspiration from LES - Uncoordinated Management - Socially Considerate • Nature of Business? - Small scale Enterprise - One Stop Shopping • Methodology Of Approach Analyzing Industry Demand Forecasting Techniques Capital Outlay and Financing Valuation
Slide 3: (applicable in Gulberg only) This will include, • Grave arrangements • Provision of Kuffen • Moulvi arrangement • Announcements • Janazgah arrangement • Cot and ambulance • Ghusal arrangement • Complementary flowers Standard Package Extended Package (covering Qul and Chelum) This will Include, • Grave Arrangements (pakki) • Provision of Kuffen • Moulvi arrangement • Announcements in newspaper • Janazgah arrangement • Cot and ambulance • Ghusal arrangement • Dead body preservation • Complete catering • Complementary flowers Comprehensive Package (covering Qul, Chelum and three Barsies) This will Include, • Grave Arrangements (pakki) • Provision of Kuffen • Moulvi arrangement • Announcements in newspaper • Janazgah arrangement • Cot and ambulance • Ghusal arrangement • Dead body preservation • Complete catering • Arrangement of seven Jumerats • Complementary flowers • Complementary Chadar • Invitations to relatives about Gatherings
Slide 4: Market Analysis • Why Gulberg as the Target Region? - Growing needs of Population - Densely Populated Yet Affluent - Connected With the concept of Higher Income BUT Why NOT Defence - Potential Demand - DHA Sponsored Free Burial Service - Aim to provide other services later
Slide 5: Market Analysis • Target Group - Middle and Upper Class - Income Group 25000-above Target Group also Justifies the Catering of Gulberg • Deriving Demand - The Key tool for Deriving Demand is our Survey - Conducted at Gulberg as identified target group is present in Bulk - Real GDP growth model
Slide 6: Industry Analysis • The Key Drivers for the Industry - Death Rate - Perpetual Demand Rest In Peace Popularity Normal refusal Joint Family 6% 12% Joint family refusal 26% Normal 56% Joint Family Normal Joint family refusal Normal refusal - Health Standard - Incorporated in Death Rate - Assumed to grow at current rate - Real GDP growth - Increased Net Disposable Income - Social Setting - Not Popular among Joint Families - Assumed to Stay the Same
Slide 7: Competitor Analysis • Face a crude Industry • Only Competitors are Caterers • Outsourced Catering • DHA- Burial Service is a competition but not an exclusive one
Slide 8: SWOT Analysis Strengths Uniqueness of business Comprehensive service packages Tailor-made packages Market creating function of firm Weaknesses Possibility of slow cash flow problems Blockage of investment in fixed assets Shortage of desired workforce Capacity constraints in times of high demand or simultaneous orders Opportunities Growth in Lahore and other cities Full market capitalization Favorable changing social trends as people are becoming more convenience-pursuant Rising real GDP Threats Free services being offered by DHA Future competition Declining death rates due to better life expectancy and health care Political instability and government laws
Slide 9: Net Income Net Income 10000 8000 6000 4000 2000 0 Profit (,000) Year 1 Year 3 Year Year 5 Profits
Slide 10: Death Rate No. of Deaths in Lahore 39,000.00 38,000.00 37,000.00 36,000.00 35,000.00 34,000.00 33,000.00 32,000.00 31,000.00 20 03 20 05 20 07 20 09 19 97 19 99 20 01 No. Of Deaths Estimated Actual Year
Slide 11: Real GDP per Capita Over the Years Real GDP Real GDP per Capita Growth 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07 20 08 20 09 20 10 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00 -1.00 Growth Rate Growth Rate Year
Slide 12: Profitability
Slide 13: Cash Flows Net Cash Flow 10000 8000 Net Cash 6000 Flow 4000 2000 0 Net Cash flow (,000) Year 1 Year 3 Year Year 5
Slide 14: A few more Ratios
Slide 15: Key Assumptions • Why Gulberg? • Income • Death rate • Income Classes • Outsourced Catering • Cash Dealings • King Edward Deal • Perpetuity • WACC not used
Slide 16: NPV Analysis
Slide 17: Sensitivity Analysis • SE 1, 5% Price Change • SE 2, 5% Variable Cost Change • SE 3, 5% Fixed Cost Change • Most Sensitive to Variable Cost Change • Least Sensitive to Fixed Cost Change
Slide 18: Scenario Analysis • SC 1, No Real GDP Growth • SC 2, Virus • SC 3, Advertisement • Heavy Dependence on Real GDP Growth • An Outbreak of a Virus will be a huge Opportunity
Slide 19: Project Executive Summary • Profitable, High NPV • Moderate Initial investment, payback period • Allows Expansion • Market Creator, No initial Competition • Comprehensive Services Offered • Source of Demand Natural, Perpetual • Growing Real GDP of Pakistan • Not just Economic, But Social Significance