FEASIBILITY REPORT ON

DOOH & OOH ADVERTISING MEDIA

1
 FEASIBILITY REPORT ON
DOOH &OOH
ADVERTISING MEDIA

Submitted by

Shaikh Uzer Khaja

MBA (Finance& Marketing), SIBAR, SPPU, Pune, India

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 INDEX
No Content Page no

1 Objective of project 5-6

2 Company Beliefs 7-8
3 Service profile 9-10
4 Licensing 11-16
5 Comparison of LED Board and 17-21
Conventional hoarding board
6 Marketing strategy 22-25
7 Financial statements 26-28
8 Quotation of LED 29-30
9 Plant layout &infra-structure 31-35
10 Loan details 36-37
11 Repayment schedule 38-43
12 Sales and depreciation 44-49
13 Profitability statement 50-51
14 Projected cash flow 52-53
15 Balance sheet 54-55
16 Ratio analysis 56-59
17 Case study site location 60-63
18 Conclusion 64
19 References 65

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Company Name: Param Publicity
Director: Dr. Sunil Patil
Registered Office: #15, Kumar Pavilion,
Next to Victory Theater East Street Camp, Pune-411001
Contact: #9422070606,8087945509
Email: sunil.patil@parampublicity.com
Website: www.parampublicity.com

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OBJECTIVE OF
PROJECT

5
 OBJECTIVE OF PROJECT

To get an in depth study of financial statements to be submitted to bank

for loan proposals.
The procedures required to gain the capital through bank and study of
documents to be submitted to bank.
To study the feasibility of project to be accomplished.

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COMPANY BELIEF

7
Companys Belief:
We are committed to satisfy our customers by providing quality product
or services. This gives highest value for money. We believe that
employees are most important assets through which we can reach the top
in each category of our products/services. Therefore, we will emphasize
on their continuous improvement through up gradation of relevant
knowledge and training.
We commit ourselves to continuous growth, so as to fulfill the
aspirations of our customers, employees and investors.
We want every business man to use Digital Marketing as platform to
advertise their business. We will it so reasonable that every business
man should use it as a medium to advertise their business.

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SERVICE PROFILE

9
Services Profile

The product here is Services; we will offer the best service. Our aim is to satisfy
the customer, because customer is the ultimate king of the market .We will provide
the customer with best services in minimum and reasonable cost The Services is
are is primary motive to make a step towards digital marketing.

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LICENSING

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 Documents to be enclosed for new application for license to
State/Central Licensing Authority

1. PMCs head officers letter to applicant

2. Proposed map plan of the location with measurements(7 blue print)
3. Light bill
4. Rental agreement of the space being used
5. Owners allowance certificate(on a 100Rs stamp paper with notary & photos)
6. Applicants self declaration certificate(stamp paper notary)
7. Areas police officers (wahutak department certificate of clearance allowance)
8. Heads allowance certificate
9. Structural stability report with map.
10. Locations photo
11. Applicants mail id.
12. Completion certificate.

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COMPARISION OF
LED BOARD&
CONVENTIONAL
HOARDING BOARD

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 Sublimation Printing
Paper image is transfer on the
surface of the polyester
fabric.
There is no need of fabric to
be coated.
Base fabric should be
synthetic or 100% polyester.
Disperse dyes are used
Sublimation will not fade,
even after multiple washings.
Sublimation dyes does not
penetrate the surface of
fabric. So back side of fabric
always white.
Production feasible and less
costly for bigger run.
Digital Printing
The inks are printed directly
to the coated fabric.
There is need of fabric to be
coated.
All fabric can used as base
except polyester or synthetic.
Reactive dyes are used
Digital print can get fade
after multiple washing.
In this dyes penetrate the
surface of base fabric. Digital
relying on molecular
bonding.
It is not production feasible,
ideal for sampling only.
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19
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21
MARKETING
STRATEGY

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We are passionate about doing things well. This means we need to start with a
Plan.

The benefits of a Marketing Plan/Strategy:

Helps you set clear objectives

Makes you think in detail about who your customers are
Allows you to take a fresh look at past and current marketing activity
Lets you plan future activity to ensure maximum benefit
Keeps your brand relevant and consistent
Opens you up to new ideas

Once you have a marketing plan, this then forms the basis for any specific activity
you might need to undertake - like building a website, creating a corporate profile,
promoting a new product.

Advertising

Advertising can be very effective when part of our overall marketing activity.
We can organize this from creative development to media booking, or just
guide you to ensure you are getting maximum return from your spending.

People need to see /hear an ad more than once to acknowledge its' message.
Review our message from your Customers point of view.
Be constant and consistent.
Using a range of mediums to advertise is very effective.
Plan carefully before you commit to a big advertising spend.

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 Websites

We will make most of the Internet

Based on marketing rather than technical principles

Create a foundation for all our marketing activity

Help build and maintain a central customer database
Include email marketing and many other useful features
Can grow cost effectively as your business needs change
Gives us useful data to direct future marketing activity and business
decisions
Can save our time and money in servicing your clients

Print/Signage

Print and signage are very common mediums, but sadly often misused. Once
companies give over their design to the local printer, the local newspaper or an
industry magazine, it is easy for our brand to devolve.

Rules for Quality Print and Signage:

Make sure the design is done by a single designer.

Have standard guidelines for all our production.
Be creative within these guidelines.
Make sure our signs stand out. People are often driving by.
Don't scrimp on the quality of paper in your stationery.
It says a lot about who we are.
Our invoices, quotes and business proposals should not be forgotten.
Our message is much stronger if you are consistent.
Don't use too many words in our signs.
Our Logo and website should nearly do it.

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 Email Campaigns

If we are going to email someone, we will make sure we have something

interesting to say - from their point of view, not ours.

The email is a fantastic medium, but as we all know, every Tom, Dick and Harry
are using it to sell us something. Luckily not all of that is dirty, but much of it is
annoying.

How to avoid becoming an Unwanted Email Stalker:

Only email people when we have something they really might enjoy
or benefit from knowing.
Email is a friendly way to poke people and remind them we are around.
Don't push your sales line too hard or they will just click you away.
Don't email too often.
Add pictures, keep copy brief and relevant.
Make it personal by sharing some of your professional knowledge and
experience.

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 FINANCIAL
STATEMENTS

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CAPITAL INPUTS
Land &Building

We need to rent an office and land according to our requirements:

300sqft office and 100 sqft.
Deposit 1, 00,000for each &Rent 10,000 pm each is equal to 240,000 per annum

Total Working Capital:

Particulars Amount
Emplyees salaries 30,000
Utilities
1. Electricity bills 13,000
2. Repairs and 10,000
maintanance
3. Trasport and 3,000
travelling
4. Printin&stationary 2,000
5. Telephone 2,000

Total 30,000
Total 60,000

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Total capital required :
Sr no Required Material Required capital

1. LED Board,Angel Stucture 27,02,200

2. Deposit 2,00,000
3. Furniture 4,00,000
4. Priliminary expenses 97,800
5. Working capital 60,000
6. Computer 40,000

Total 35,00,000

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QUETATION OF
LED BOARD

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30
PLANT LAYOUT&
INFRASTRUCTURE

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32
33
34
Process Flow Diagram

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LOAN DETAILS

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 Loan Amount 24,50,000

Loan Term (Years) 5

Payments Per Year 12

Rate of Interest 12.00%

Monthly Installment 54,499

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REPAYMENT
SCHEDULE

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 1st Year

Monthly
S.No Installment Interest Principal Balance
0 2450000
1 54499 24500 29999 2420001
2 54499 24200 30299 2389702
3 54499 23897 30602 2359100
4 54499 23591 30908 2328192
5 54499 23282 31217 2296975
6 54499 22970 31529 2265446
7 54499 22654 31844 2233602
8 54499 22336 32163 2201439
9 54499 22014 32485 2168955
10 54499 21690 32809 2136145
11 54499 21361 33137 2103008
12 54499 21030 33469 2069539

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 2ndYear

Monthly
S.No Installment Interest Principal Balance
13 54499 20695 33804 2035735
14 54499 20357 34142 2001594
15 54499 20016 34483 1967111
16 54499 19671 34828 1932283
17 54499 19323 35176 1897107
18 54499 18971 35528 1861579
19 54499 18616 35883 1825696
20 54499 18257 36242 1789454
21 54499 17895 36604 1752850
22 54499 17528 36970 1715879
23 54499 17159 37340 1678539
24 54499 16785 37714 1640826

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 3rd Year

Monthly
S.No Installment Interest Principal Balance
25 54499 16408 38091 1602735
26 54499 16027 38472 1564264
27 54499 15643 38856 1525407
28 54499 15254 39245 1486163
29 54499 14862 39637 1446525
30 54499 14465 40034 1406492
31 54499 14065 40434 1366058
32 54499 13661 40838 1325219
33 54499 13252 41247 1283973
34 54499 12840 41659 1242313
35 54499 12423 42076 1200238
36 54499 12002 42497 1157741

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 4th Year

Monthly
S.No Installment Interest Principal Balance
37 54499 11577 42921 1114820
38 54499 11148 43351 1071469
39 54499 10715 43784 1027685
40 54499 10277 44222 983463
41 54499 9835 44664 938798
42 54499 9388 45111 893688
43 54499 8937 45562 848126
44 54499 8481 46018 802108
45 54499 8021 46478 755630
46 54499 7556 46943 708687
47 54499 7087 47412 661275
48 54499 6613 47886 613389

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 5th Year

Monthly
S.No Installment Interest Principal Balance
49 54499 6134 48365 565024
50 54499 5650 48849 516176
51 54499 5162 49337 466839
52 54499 4668 49831 417008
53 54499 4170 50329 366679
54 54499 3667 50832 315847
55 54499 3158 51340 264507
56 54499 2645 51854 212653
57 54499 2127 52372 160280
58 54499 1603 52896 107384
59 54499 1074 53425 53959
60 54499 540 53959 0

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 SALES AND
DEPRICIATION

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 CLIENTS
The key clients for our project would be the firms, institutes .events, etc

Following is the list of our clients.

1 Hotel
2 School
3 Ladies store
4 Bank
5 Mutual Fund
6 Mattress
7 Garment store
8 Politician/Events

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Sales /Revenue
Sr.no Clients Sec/Day Rate Monthly Monthly
(Rs) (Rs) Total
1 Monthly 15/4,500 600 18,000 3,50,000
2 Weakly 15/4,500 800(20) 16,000
Total revenue 42,00,000

It is assumed that there is always 5% increase in sale of the company EVERY

YEAR

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 Depreciation

Depreciation on LED Board & Angel Structure:

Years Value of assets Depreciation @20 Closing balance of
% assets
1 27,02,200 5,40,440 21,61,760
2 21,61,760 4,32352 17,29,408
3 17,29,408 3,45,882 13,83,526
4 13,83,526 2,76,705 11,06,821
5 11,06,821 2,21,364 8,85,457

Depreciation on Furniture:
Years Value of furniture Depreciation Closing balance of
(Rs) @ 10% (Rs) assets (Rs)
1 4,00,000 40,000 3,60,000
2 3,60,000 36,000 3,24,000
3 3,24,000 32,400 2,91,600
4 2,91,600 29,160 2,62,440
5 2,62,440 26,244 2,36,196

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Depreciation on Computer:

Years Value of Depreciation Closing balance of

Computer(Rs) @ 10% (Rs) assets (Rs)
1 40,000 8,000 32,000

2 32,000 6,400 25,600

3 25,600 5,120 20,480

4 20,480 4,096 16,384

5 16,384 3,277 13,108

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 Total depreciation

Year Total

1 5,88,440

2 4,74,752

3 3,83,402

4 3,09,961

5 2,50,885

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PROFITABILITY
STATEMENT

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 Profitability statement for projected period
Particular Year 1 Year 2 Year 3 Year 4 Year 5
Revenue for the 42,00,000 44,10,000 46,30,500 48,62,025 51,05,126
projected period
(as per statement A)
Less : Revenue 25,00,000 25,75,000 26,52,250 27,31,817 28,13,771
Expenditure
Profit before Interest, 17,00,000 18,35,000 19,78,250 21,30,208 22,91,355
Depreciation and
Income tax
Less : Bank Loan 2,73,525 2,25,271 1,70,902 1,09,635 40,607
Interest
&

Depreciation 5,88,440 4,74,752 3,83,402 3,09,961 2,50,885

Less: Preliminary
Expenses 19,560 19,560 19,560 19,560 19,560
Profit Before Tax 8,18,475 11,15,415 14,04,386 16,91,052 19,80,303
(PBT)
Less : Income Tax
(existing slab rates 2,45,542 3,34,625 4,21,316 5,07,316 5,94,091
@ 30 % )

Net Profit/Loss 5,72,935 7,80,790 9,83,070 11,83,736 13,86,212

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PROJECTED CASH
FLOW STATEMENT

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 Cash flow statement for projected period
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
CASH INFLOW

Opening Balance 8,60,470 17,06,857 26,09,803 35,78,707

Add: Own capital 10,50,000
Add: Bank Loan 24,50,000
Add: Sales 42,00,000 44,10,000 46,30,500 48,62,025 51,05,126

TOTAL CASH 77,00,000 52,70,470 63,37,357 74,71,828 86,83,833

INFLOW

CASH OUTFLOW

Expenditure 25,00,000 25,75,000 26,52,250 27,31,817 28,13,771

Tax ( 30%) 2,45,542 3,34,625 4,21,316 5,07,316 5,94,091
EMI 6,53,988 6,53,988 6,53,988 6,53,988 6,53,988
Fixed Capital 31,42,200
Deposit 2,00,000
Preliminary Expenses 97,800
TOTAL CASH
OUTFLOW
68,39,530 35,63,612 37,27,554 38,93,121 40,61,850

Therefore, closing
balance of bank 8,60,470 17,06,857 26,09,803 35,78,707 46,21,983

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BALANCE SHEET

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 Balance sheet
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Liabilities

1. OWN CAPITAL 10,50,000 16,22,935 24,03,725 33,86,795 45,70,531

Add: NET PROFIT 5,72,933 7,80,790 9,83,070 11,83,736 13,86,212

2. BANK LOAN 24,50,000 20,69,537 16,40,820 11,57,734

Less : PRINCIPAL 3,80,463 4,28,717 4,83,086 5,44,353

TOTAL 36,92,470 40,44,545 45,44,529 51,83,912 59,56,743

Assets

FIXED ASSETS 31,42,200 25,53,760 20,79,008 16,95,606 13,85,645

Less: DEPRICIATION 5,88,440 4,74,752 3,83,402 3,09,961 2,50,885

DEPOSIT 2,00,000 2,00,000 2,00,000 2,00,000 2,00,000

CASH IN HAND 8,60,470 17,06,857 26,09,803 35,78,707 46,21,983

PREL EXPENSES 78,240 58,680 39,120 19,560

TOTAL 36,92,470 40,44,545 45,44,529 51,83,912 59,56,743

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RATIO ANALYSIS

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 Profitability Ratios

Net profit ratio:

Net profit ratio = net profit/sales * 100

Year Sales Net Profit before tax Net profit ratio

& interest
1 42,00,000 10,92,000 26 %
2 44,10,000 13,40,688 30.40%
3 46,30,500 15,75,288 34.02%
4 48,62,025 18,00,687 37.03%
5 51,05,126 20,20,910 39.58%

Net Profit Ratio

Year 5 Year 1
69.33% 62.90%

Year 2
64.68%

Year 4
67.94%
Year 3
66.38%

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 Fixed asset turnover ratio:
Fixed asset turnover ratio = sales / fixed assets

Year Sales Fixed asset Times

1 42,00,000 31,42,200 1.34
2 44,10,000 25,53,760 1.73
3 46,30,500 20,79,008 2.22
4 48,62,025 16,95,606 2.87
5 51,05,126 13,85,645 3.68

3.5

2.5

2 Fixed Asset Turn Over

Ratio
1.5

0.5

0
Year 1 Year 2 Year 3 Year 4 Year 5

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 Gross profit ratio :
Gross profit ratio = gross profit/sales * 100

Gross profit = Net sales cost of goods sold

Year Sales Cost of goods sold G.P Ratio

1 42,00,000 17,00,000 40.48%
2 44,10,000 18,35,000 41.61%
3 46,30,500 19,78,250 42.72%
4 48,62,025 21,30,208 43.81%
5 51,05,126 22,91,355 44.88%

G.P Ratio

21% 19%

Year 1
Year 2
Year 3

19% Year 4
21% Year 5

20%

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CASE STUDY SITE
LOCATION

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 CONCLUSION
Research supports that this industry will continue to grow once feasibility analysis
concludes capital investment versus income and spending plan base on core
analysis of day to day operations involved for smooth functioning of digital LED
bill board/Conventional hoarding activities as per geo-location of pune,
Maharashtra India.

Important aspects concluded to install LED Bill board/Conventional Hoarding

based on hot spot/Site Location drive thru no of foot print on that signal/square.

Investor will get green signal if that site location/hotspot drive thru how many foot
print and impression with signal waiting period of that point. Future scope of study
remains to go in details of Impression analysis.

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 REFERENCE
1. Ashenfelter, Orley and Michael Greenstone, Using Mandated Speed Limits to Measure the
Value of a Statistical Life, National Bureau of Economic Research Working Paper w9094,
August 2002 (http:www.nber.org/papers/w9094)

2. Knee Injury: Getzen, Thomas E., Health Economics, Second Edition New York: Wiley and
Sons, 2004.

3. Online advertising By Hal Varian

4. The Revenue Road Map for Digital Out-of-Home Networks By Alan High September 2009

5. Digital Billboard Recommendations and Comparisons to Conventional Billboards

by Ian Lewin Ph.D., FIES, L.C.

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