Business Plan Regarding Nursery Establishment and Marketing of Ornamental Plants, Bonsai and Flowers

1. Establishment of Nursery and marketing of
flowers, ornamental & Bonsai plants
Presented By:-
Aditi
Chandan Kumar Ravi
Sudarshan Kumar Patel

2. Flow of Presentation
• Executive Summary
• Objectives & Mission
• Establishment of nursery
• Financial & Data Analysis
• Market & Industry analysis
• Conclusion

3. Executive Summary
• Natural Nursery is dedicated to providing a quality choice for people looking for plant and garden supplies, as well
marketing of good quality flowers, ornamentals and bonsai. Our start-up expenses come to Rs. 27,62,000 which
includes the cost of the greenhouses and the cost of rent for the land .
• We will offer a wide variety of plants, trees, vegetable plants, along with a selection of garden supplies. Most of the
plants we sell will be grown in our greenhouses. With a convenient location Natural Nursery intends to successfully
market to the residential customer, as well as contractors and renters.
• We would like to see a five to ten percent increase in our customer base each year. Our marketing strategy includes
providing a knowledgeable staff, affordable prices, a great location, and top notch customer service.

4. Executive Summary
• Natural Nursery has been the dream of owners for the last five years. Aditi, Ravi & Patel will manage all aspects of
operations at Natural Nursery. Aditi will oversee the staff and be involved with the ordering of merchandise, while
Ravi will be responsible for the ordering of the garden supplies including flowers and ornamental, while Patel will
see the maintenance of the greenhouses & Bonsai business.
• Natural Nursery aims to experience a growth rate of 20% in sales for the second year of operation and build upon
that as the company grows. With creative marketing, and a quality choice of plants and garden supplies for our
customers Natural Nursery intends to make its presence known in the nursery community.

5. Objectives
• Maintain an average gross margin at or above 50%.
• Generate an average of $1,000 of sales each business day of each month.
• Realize an annual growth rate of 10% in Year 2.
Dedicated to providing a wide variety of plants and trees to customers with pleasant shopping experience.
Mission
• Sell products of the highest quality with excellent customer service and support.
• Retain customers to generate repeat purchases and make referrals.
• Continue to expand daily sales by adding to the variety of plants we sell.
• Communicate with our customers through creative advertising.
Keys to Success

6. Establishment of Nursery
• Site Selection:-
(Land preparation:- 2ha [ 1 ha for mother plantation, 0.5 acre for office, road, storage, garage; 1 acre demonstration and remain;
1 acre net house and shade house)
• Planting material , packaging material
• Construction
• Workers:- 6 (4+1+1)
• Tools, Equipment and vehicles:-2 TATA ace; 1 power tiller
• Irrigation system
• Computers and other hardware

7. Nursery’s Portfolio
Products
• Ornamental plants
• Bouquets
• Loose and cut flowers
• Bonsai
• Lawn turf
• Climbers
• Seasonal plants
Services
• Online transactions
• Rent a pot
• Training to customers
• Free home delivery
• Monthly maintenance

8. Input cost
Item Cost
Land (2 ha) 600000
Regulatory approval 200000
Irrigation Unit 100000
Fencing 50000
Road, Building, Net house construction 600000
Planting material 150000
Vehicle, tool & equipment 900000
Total 2600000
second year onwards (as a maintenance
cost)
50000
Item Cost
Workers (6 @ Rs 3000/month) 216000
Bonsai Preparation 75000
Turf Preparation 75000
Advertisement 120000
Cultivation cost 100000
Electricity, fuel, repairing 80000
Total 666000
second year onwards 810000
(Rs 144000 for additional four workers @ 3000/month)
Fixed Cost (Rs.) Variable Cost (Rs.)

9. Input cost (Contd)
Fixed cost Variable cost total
1st year 2600000 666000 3266000
2nd year 50000 810000 860000
3rd year 50000 810000 860000
4th year 50000 810000 860000
Total expenditure 2750000 3096000 5846000

10. Prospective income
Item Income (1st
Year) Income (2nd
Year)
Bouquet 7*150*80 = 84000 14*300*100 = 420000
Seasonal plants 6*200*30 = 36000 40*300*30 = 360000
Cut flower & loose
Flower for marriage decoration 5*10000 = 50000 12*10000 = 120000
Rent a pot@ 20 pots in each party 40*1000 = 40000 60*1000 = 60000
Climbers 300*100 = 30000 450*100 = 45000
Processing industry 30000 = 60000
Ornamental Plants 2*300*200 = 120000
Turf (carpet lawn grass) 500*250 = 125000
Prospective income 270000 1310000

11. Prospective income
Item Income(3rd
Year) Income(4rth Year)
Bouquet 15*300*100 = 450000 15*300*100 = 450000
Seasonal plants 60*300*40 = 720000 65*300*40 = 780000
Cut flower & loose
Flower for marriage decoration 20*11000 = 220000 20*11000 = 220000
Rent a pot@ 20 pots in each party 100*1250 = 125000 100*1250 = 125000
Climbers 600*100 = 60000 600*100 = 60000
Processing industry = 150000 = 150000
Ornamental Plants 5*300*250 = 375000 5*300*250 = 375000
Bonsai 100*3000 = 300000 100*5000 = 500000
Turf (carpet lawn grass) 1000*250 = 250000 1000*250 = 250000
Prospective income 2650000 2910000

12. Gross income & prospective profit
1st year income 270000
2nd year income 1310000
3rd year income 2650000
4th year income 2910000
Gross income 7140000
Prospective profit
Gross income 7140000
total expenditure 5846000
Profit 1294000

13. Year wise profit
income – expenditure profit
First year - 270000 – 3266000 = - 2996000
Second year - 1310000 – 860000 = 450000
Third year - 2650000 – 860000 = 1790000
Fourth year - 2910000 – 860000 = 2050000
Net worth after first year = - 2996000
after second year = - 2546000
after third year = - 756000
after fourth year = + 1294000

14. Break-even Analysis
Cumulative cost Cumulative Income
1 year 3266000 27000
2 year 4126000 1580000
3 Year 4986000 4230000
4 Year 5846000 7140000

15. Industry Analysis
• Future outlook and Trends-
• 1. Important commercial activity in agriculture
• 2. Evolved as viable and profitable alternative
• World Production and Consumption-
• Growing a rate of 10% per year (Production)
• High Demand- Country like Germany, UK, France, Italy
• Production Trend of flowers in India-

16. Cont…………….
Indian Floriculture Industry-
• CAGR- 27%
• TR- US $ 250 million
• Export Opportunity-
• 2006-07- 653 Crore
• 2007- 08 – 340 Crore
• Decreased by 48%
• 2008-09 further decreased by 5.18
Analysis of Competitors –
• Foreign-
• African Countries
• Asian- China, Nepal, Pakistan, Srilanka
• Domestic- Ganga Nursery, SRS Biotech, Nandan
Kanan, Sharon Nursery and Many More

17. Cont………….
• Challenges-
• Low Export Potential
• The performance of Indian floriculture sector has not been encouraging
• High Freight Rates
• Inadequate Cold Chain Management
• Innovation, quality and environmental issues
• Strategies-
• Efficient backward and forward linkage
• Integrated cold chain from harvesting to customers
• Improvement of cargo handling facilities
• Risk Management Strategies-
• The business will use the diversification of species as its main risk management tool.
• Nursery crops are covered by crop insurance.

18. Market Analysis
Market Segmentation
Geographic's
•Metropolitan area with a population of 200,000 people.
•A 100 mile geographic area would want our services,
•The total target market is estimated at 500,000 people.
Demographics
•Male and Female.
•Age range of 25 to 80 years, with a median age of 40.
•Residential, Homeowners
•Commercial contractors
•Renters

19. Market Analysis
Our marketing strategy centres around superior performance in the following areas.
• Customer service
• Large selection and fair pricing
• Quality products
Objectives:-
To provide quality products at competitive prices.
To provide consistent quality throughout the life of the business.
To retain customer’s respect.
To provide products for customers that will meet their standards.
Target Market Segment Strategy :-

20. SWOT Analysis
• Internal Strengths: External Threats:
• The owner has experience growing plants. . Drought
• The owner has a current pesticide license. . Large Suppliers
• The owner has business experience.
• The owner has a truck that will be used for delivery.
• Continued growth of the new housing industry in the target area.
• Internal Weaknesses:
• Wholesale sales will not net as much income as retail sales.
• The owner will need to purchase some equipment.
• Lack of High Technology
• External Opportunities:
• The owner has many connections to the nursery industry .
• High Demand
Existing Rivalry High Many Competitors
High demand
More profit
Bargaining
Power of buyer
High
Major Availability
New Business
Low Price
Penetration Strategy
Bargaining
Power of
supplier
Less
Less
Many Suppliers
Own Production
Threat of new
entrants
Moderat
e
Establishment in village Establishing strong market
linkages and trust among all
stakeholders reduces the
risk.
Threat of
substitute
Less
No other alternative.

21. Marketing Mix and STP
• Product- Flowers, Ornamental Plants, Bonsai Plants
• Promotion-
• Promotion of the business will be by direct contact with potential customers. This contact
• will begin before plantss are started in the nursery so the business knows the market desires
• before entering the business. This promotional tool will be the most effective and cost effective
• for the business.
• Price- Fair
• Place- Kolkata
• Services-
• Quality Plants
• Free of Diseases
• Desired Quantity
• Supply At Doorstep
• STP
• S- Wholesale, Retail, Customised.
• T- Industries like Jindal, Monnet, Reliance, Corporate Office, Hotels etc. P- High volume with low price

22. Own Strategies for Success
• Before deciding on species to plant, the owner plans to visit with several businesses in the target area to determine the
species they are selling.
• The business is located within thirty miles of the target market. This will enable the target market to have better
accessibility to plants when they are needed.
• Because of the time required to produce the trees, the business cannot change products easily. This will make
changing products difficult. This will also require the business to thoroughly research the species to be produced. The
business must have the foresight to predict what species will be desired in four years. This will make it difficult for the
business to expand or contract dramatically or quickly.