Acknowledgement

I am thankful to Mr. Shivkant Upadhaya for giving me an opportunity to Work

on the topic of my interest. Apart from gaining knowledge on many important
things, it also helped me understand the Market scenario for Tattoo Parlour.
This has become clearer then what it was. Working on such a topic has given
us a lot of information of the market today. This project surely has helped
understand the subject marketing.

Indeed, working on this project was a delightful experience. I would also like
to thank my Colleague and my Tattoo Artist Mr. Ketan S. Saindane who has
been of great help, who provided me with basic information to get started
with my very own Tattoo Parlour in near future.

Sign : Date:
Executive Summary

The purpose of this business plan is to raise $10,00000 for the development of a
tattoo shop while showcasing the expected financials and operations over the next
year. The Tattoo Shop, Inkoholics Inc. is a Pune based corporation that will
provide tattoo services to customers in its targeted market. The Company was
founded in 2010 by Kapil Varadharajan and has 3 promoters.

Products and Services

As stated above, the primary revenue source for the business will come from tattoo
service. At the onset of operations, the Company intends to hire 2 full time
Permanent tattoo artists and one fulltime Temporary tattoo artist specialists that
will be able to render the services to the Company’s clients. At all times, the
Company will remain within the letter of the law regarding the sale of these
services while concurrently maintaining a clean and hygienic facility. The business
plan will further describe the services offered by the Tattoo Shop.

The Financing

Mr. Varadharajan is seeking to raise Rs.321658 from as a bank loan. The interest
rate and loan agreement are to be further discussed during negotiation. This
business plan assumes that the business will receive a 2 year loan with a 15% fixed
interest rate.

Mission Statement

The Tattoo Shop’s mission is to become the recognized leader in its targeted
market for tattoos and taking the art of Tattooing to a new level.

Management Team

The Company was founded by Kapil Varadharajan who has more than 3 years of
experience as a tattoo artist. Through his expertise, he will be able to bring the
operations of the business to profitability within its first year of operations.

Sales Forecasts
Mr. Varadharajan expects a strong rate of growth at the start of operations through
his sales Promotion Activities.

Expansion Plan

The Founder expects that the business will aggressively expand during the first
three years of operation. Mr. Varadharajan intends to implement marketing
campaigns that will effectively target individuals within the target market.
 Introduction

“Tattoos evoke a range of reactions – from interest, astonishment, admiration and

reverence. They are met with open mouths or frowns, their bearers are judged or
misjudged, awakening fear or desire.” 

A tattoo is a puncture wound, made deep in your skin, that's filled with ink. It's
made by penetrating your skin with a needle and injecting ink into the area, usually
creating some sort of design. What makes tattoos so long-lasting is they're so deep
— the ink isn't injected into the epidermis (the top layer of skin that you continue
to produce and shed throughout your lifetime). Instead, the ink is injected into
the dermis, which is the second, deeper layer of skin. Dermis cells are very stable,
so the tattoo is practically permanent.

Tattoos used to be done manually — that is, the tattoo artist would puncture the
skin with a needle and inject the ink by hand. Though this process is still used in
some parts of the world, most tattoo shops use a tattoo machine these days. A
tattoo machine is a handheld electric instrument that uses a tube and needle system.
On one end is a sterilized needle, which is attached to tubes that contain ink. A foot
switch is used to turn on the machine, which moves the needle in and out while
driving the ink about 1/8 inch (about 3 millimeters) into your skin.

Most tattoo artists know how deep to drive the needle into your skin, but not going
deep enough will produce a ragged tattoo, and going too deep can cause bleeding
and intense pain. Getting a tattoo can take several hours, depending on the size and
design chosen.

Tattooing has been practiced for centuries worldwide. The Ainu, the indigenous
people of Japan, traditionally wore facial tattoos. Today one can find Berbers of
Tamazgha (North Africa), Māori of New Zealand, Arabic people in East-Turkey
and Atayal of Taiwan with facial tattoos. Tattooing was widespread among
Polynesian peoples and among certain tribal groups in the Taiwan, Philippines,
Borneo, Mentawai Islands, Africa, North America, South America, Mesoamerica,
Europe, Japan, Cambodia, New Zealand and Micronesia. Despite some taboos
surrounding tattooing, the art continues to be popular in many parts of the world.

Some facts:

 Tattoos are created by placing coloured inks or pigments under the top layer
of skin.
 Tattoos are but one form of intentional body modification.
 Tattoos can have an infinite number of shapes, from simple line drawings to
incredibly intricate designs.
 Tattoos are as ubiquitous as humans themselves; they exist in virtually every
culture on all continents.
 Tattoos have existed almost as long as humans have.
 Tattoos can be most any colour.
 Tattoos are most often, but not always, created by tattoo artists.
 Tattoos are applied to most any area of the human body.
  Tattoos are often symbolic.
 The act of tattooing causes the recipient a great deal of pain.
 Tattoos bleed and scab and must be properly cared for while they heal.
 Tattoo instruments can include metal needles, sharpened ivory or bone,
stone, sticks, chisels, hammers, electric tattoo machines, ball point pens and
razors.

Tattoo History:

Tattoos are a very old form of body art and have been practiced from a very long
time in civilized human history. The history of tattoos is very ancient and seems to
be of thousands of years old and even before the birth of Christ. The recorded
indication of tattoos comes from the ancient Egypt where wall paintings as old as
2000 BC have been suggesting the use of tattoos in the ancient Egyptian society.

The etymology of word tattoo provides few very different and interesting answers
to the current day practicing of making permanent colored marks on human body
or tattooing. The word “tattoo” can have many origins as words in many different
languages have the same meaning and similar pronunciation. Different
civilizations have been recorded to use the word tattoo or at least practicing of
coloring their body parts for different reasons have been recorded.

Tattooing has been a Eurasian practice at least since Neolithic times. Ötzi the
Iceman, dating from the fourth millennium BCE, was found in the Ötz valley in the
Alps and had approximately 57 carbon tattoos consisting of simple dots and lines
on his lower spine, behind his left knee, and on his right ankle. Other mummies
bearing tattoos and dating from the end of the second millennium BCE have been
discovered at Pazyryk on the Ukok Plateau. Tattooing in Japan is thought to go
back to the Paleolithic era, some ten thousand years ago. Various other cultures
have had their own tattoo traditions, ranging from rubbing cuts and other wounds
with ashes, to hand-pricking the skin to insert dyes, etc.

The word tattoo is said to has two major derivations- from the polynesian word ‘ta’
which means striking something and the tahitian word ‘tatau’ which means ‘to
mark something’.

The history of tattoo began over 5000 years ago and is as diverse as the people
who wear them.

Tattoos are created by inserting colored materials beneath the skins surface. The
first tattoos probably were created by accident. Someone had a small wound, and
rubbed it with a hand that was dirty with soot and ashes from the fire. Once the
wound had healed, they saw that a mark stayed permanently.

Despite the social sciences' growing fascination with tattooing, and the immense
popularity of tattoos themselves, the practice has not left much of a historical
record.

Definition:

A tattoo, or dermal pigmentation, is a mark made by inserting pigment into the

skin for decorative or other reasons. Tattoos on humans are a type of decorative
body modification, while tattoos on animals are most commonly used for
identification or branding.

Tattooing has been practiced worldwide. The Ainu, the indigenous people of
Japan, wore facial tattoos, as do some Maori of New Zealand to this day. Tattooing
was widespread among Polynesian peoples, and among certain tribal groups in the
Philippines, Borneo, Mentawai Islands, Africa, North America, South America,
Mesoamerica, Europe, Japan, Cambodia, New Zealand and China. Despite some
taboos surrounding tattooing, the art continues to be popular all over the world.

Procedure:

Some tribal cultures traditionally created tattoos by cutting designs into the skin
and rubbing the resulting wound with ink, ashes or other agents; some cultures
continue this practice, which may be an adjunct to scarification. Some cultures
create tattooed marks by hand-tapping the ink into the skin using sharpened sticks
or animal bones or, in modern times, needles. Traditional Japanese tattoos
(irezumi) are still "hand-poked," that is, the ink is inserted beneath the skin using
non-electrical, hand-made and hand held tools with needles of sharpened bamboo
or steel.

The most common method of tattooing in modern times is the electric tattoo
machine, which inserts ink into the skin via a group of needles that are soldered
onto a bar, which is attached to an oscillating unit. The unit rapidly and repeatedly
drives the needles in and out of the skin, usually 80 to 150 times a second. This
modern procedure is ordinarily sanitary. The needles are single-use needles that
come packaged individually. The tattoo artist must wash not only his or her hands,
but they must also wash the area that will be tattooed. Gloves must be worn at all
times and the wound must be wiped frequently with a wet disposable towel of
some kind.

Prices for this service vary widely globally and locally, depending on the
complexity of the tattoo, the skill and expertise of the artist, the attitude of the
customer, the costs of running a business, the economics of supply and demand,
etc. The time it takes to get a tattoo is in proportion with its size and complexity. A
small one of simple design might take fifteen minutes, whereas an elaborate sleeve
tattoo or back piece requires multiple sessions of several hours each.

The modern electric tattoo machine is far removed from the machine invented by
Samuel O'Reilly in 1891. O'Reilly's machine was based on the rotary technology of
the electric engraving device invented by Thomas Edison. Modern tattoo machines
use electromagnetic coils. The first coil machine was patented by Thomas Riley in
London, 1891 using a single coil. The first twin coil machine, the predecessor of
the modern configuration, was invented by another Englishman, Alfred Charles
South of London, in 1899.
 About Inkholics Inc.

At Inkholics Inc. Tattoo Studio, our artists are some of the finest and most versatile
tattooists in this region of the city. Due to our various interests in different art
forms as we well versed with Japanese Designs, Modern Art, Ancient Indian Art,
Chinese Art etc. Thus we are able to accommodate a large variety of styles.
Whatever type of tattoo you are looking for, it can be done at “Inkholics Inc.".

We understand the needs of the modern tattooist and aim to carry a stock of
products that meet the demanding requirements of day-to-day use. With everything
from tattoo kits, to tattoo inks, we try to encompass every aspect of tattooing
making us the one stop shop for all your tattooing needs. As we are located in
Metropolitan area i.e. Pune we will be able to cater to a large number of our
specific target audience.

The mind weaves many beautiful designs, which are either influenced by
components or elements, which are close to our life. It requires great talent and
expertise to be able to visualize another person's imagination. Apart from
customizing designs, we offer thousands of attractive designs from which you can
choose. We offer a wide portfolio of tattoo designs.

Inkholics we help you combine all the elements the aspiring human canvas needs
to make the transformation from skin to art. We emphasize both interactive
creativity between customer and Tattooist. As you enter our studio where the
recreation of your mental image as a custom tattoo by qualified and easy going
staff as mentioned earlier we are just a call away from you so one can easily
make an appointment for a consultation, choose from our selection of original
flash, or bring in some pictures to co-create a beautiful custom tattoo. Meld minds
with a group of artists who are happy to work with you to get the custom design or
body art you desire. Our modern studio operates above and beyond health
department guidelines and our staffs utilize the latest technologies and methods of
hygiene maintenance such as autoclave sterilization and one use only needles.

MISSION AND VISION STATEMENT

Mission Statement:

Taking art to the next level…

Vision:

We would certainly expect our tattoo studio to flourish and make good business as
the location chosen for the business (Kalyani Nagar), is favorable.

There would be people also coming from Osho Ashram which is quite near to the
tattoo studio and also the college going crowd would add to it.

Five years down the line we intend to set up some branches at Deccan and also at
Paud road.

We also intend to hire some more tattoo artists who would be professionals from
the foreign countries, like U.S.A.

We would also start up our own website so that people all over the world, who are
keen about tattoos, especially tourists would know about our tattoo studio and
would like to have them tattooed.

GENERAL INTRODUCTION OF THE BUSINESS

Name of Business:
Inkholics Inc.

Nature of business:
Service Unit (Tattoo making).

Place of sale:
Kalyani Nagar.

Telephone:
020 26687945.
Nature of products:
Tattoos.

Utility:
Trend, Styling.

Nature of Organization:
Partnership Organization.
Profit sharing Ratio:
Even and equal distribution of profit and loss.

Advantages:
Safe, less painful, economical and hygienic.

Website:

www.inkholics.com

NAME OF THE BUSINESS:

Inkholics Inc. is the name of the tattoo studio we intend to start. The business plan
seeks to give a business edge to what is basically a creative venture.

CORE COMPETENCY:

Application of trendsetting temporary tattoos along with emphasis on permanent

tattoos since these will be a larger source of income.

PURPOSE:

Inkholics Inc. Will provide customers a wide variety of designs in both permanent
as well as temporary tattoo categories while ensuring maximum safety and
hygiene.

WORKING OF THE BUSINESS:

Inkholics Inc. Will be open from 2 p.m. to 9 p.m. on weekdays and 11 a.m. to 9
p.m. on weekends. This is because, since most of our business will come from
college students, this is an ideal time.

TARGET MARKET:

Our main target market is college-going students between the ages of 17-25 yrs.
We expect a higher proportion of tattoo sales coming from this target segment.
Also, foreigners in the city will form a sizeable portion of our target market.

LOCATION:

We have selected Kalyani Nagar, Pune as the area for our first tattoo studio. This is
because Kalyani Nagar is very popular amongst our target market. Close proximity
to Koregaon Park and especially the OSHO Ashram is a boon.

LAYOUT:

The tattoo studio shall consist of:

1. The reception
2. The waiting lounge
3. The temporary tattoo booth
4. The permanent tattoo booth
5. A washroom
TECHNICAL ASPECT

Skills:

The tattoo artists are very talented and are trained by experts and have cleared the
certification to go ahead and practice tattoo making as a profession.
The tattoo artists are not only trained but also have worked with professionals and
have learned a lot.
Tattoo making is not just an art but it is a skill.

Machines:

The tattoo machines that we would be using, will be purchased form Goa itself.
The tattoo machine would cost Rs.25, 000. The manufacture of those tattoo
machines is ‘Pioneers’; they make tattoo machines of export quality. This is a one
time investment so initially; we would purchase 3 tattoo machines (2 Temporary
machines & 3 permanent tattoo machine).

Action Control :

Minutes of Meeting held at Pune on Dec 20, 2009 at 3:00 pm

Duration Of The Meeting: 45 Mins

People Present: Miss Mansee Desshmukh, Kapil

Varadharajan, Ketan S. aindane, Aditya S. Pachkhande

We discussed the requirements for the advertising

campaign regarding the tattoo parlour, Inkoholics Inc.
Miss. Mansee Desshmukh noted all the details pertaining
to our expectations to form the marketing brief.

The basic layout for setting up the shop was discussed.

The USP and the communication strategy were approved.
The next meeting was scheduled on January 9, 2010.

The Account executive, Miss Mansee Desshmukh

prepared the creative brief based on the discussion and
the marketing as well as product brief. The advertising
objective and communication strategy (key message) was
stated by the Account Executive for the benefit of the Tattoo Studio.

Marketing Brief

ABOUT US : Our studio specializes in custom tattoo art and body piercing. Our
artists and piercers specialize in custom work, cover ups, fine lines and portraits
.Customers are ensured to specialized service and quality of work from us. We are
dedicated to quality work, customer service & the philosophy that every tattoo and
piercing, whether a tiny tattoo or full body art, a nose ring should be experience
worth remembering. We focus on customer hygiene and safety. No tattoo, piercing
or customer is lesser important than anotherIf you are a kind of a person who cares
about how your tattoo looks or feels then our studio is the place to be.
Location: Main outlet: Kalyani Nagar, Pune

SERVICES PROVIDED:

Keeping in mind Safety and hygiene Ink And Needles Inc. provides with various
quality services.

1. TATTOO:

We provide the service of both permanent and temporary tattoos. Our

specialization lies in making permanent tattoos.

TATOO GALLERY:

The various categories of tattoos are as follows:

1. Religious
2. Angels
3. Goth
4. Fish
5. Comic
6. Portraits
7. Write ups
8. Animals
9. Cover ups

10.Tribal

POST TATTOO CARE: We provide a tattoo safety kit to every customer who gets
a permanent tattoo done at our studio. This kit will be a post tattoo care .It will help
the customers to keep their tattoo intact. The kit will have an ointment for the
tattoo, to avoid any swelling and any skin reaction, making it less painful. It will
also consist a post-tattoo care manual with the do’s and don’ts of post tattooing.
We also provide the customers with tattoo removal facility.
TARGET GROUP

DEMOGRAPHIC
SEGMENTATION:

Age: 18 years and above

Social Class: Middle class and upper

class

Sex: Male and Female

PSYCHOGRAPHIC
SEGMENTATION:

Lifestyle: Urban and Youth

Mindset: Open minded people who

would love experimenting and who
loves art.

PRICING:

1. The permanent tattoos will be starting with the price of Rs .1200/sq inch then
450/Sq inch and the price will vary according to the size of the tattoo.

2. Temporary tattoos will start with the price of Rs 80/sq inch- onwards and the
price will vary according to the size of the tattoo.

Marketing Objective:

To penetrate in the unestablished tattoo market and changing the rigid mind sets of
the people thereby creating a cultural change.

• Implement a local campaign with the Company’s targeted market via the use
of flyers, local newspaper advertisements, and word of mouth advertising.
 • Develop an online presence by developing a website and placing the
Company’s name and contact information with online directories.

COMPETITORS:

1. The existing tattoo parlors of Pune

2. The Mehendi artists
3. The instant sticker tattoos

MARKET ANALYSIS

TREND SETTERS IN PUNE:

After SABBY’S TATTOO STUDIO in Koregaon Park, we are the only
tattoo makers in the neighboring area (like Koregaon Park and Kalyani
Nagar).

LOCAL DEMAND:
According to the survey we made, we found out that people consider it a
trend and not taboo, we also came to know that people consider it a trend
and not taboo. And there is lot of craze among the youngsters.

NAME OF THE COMPETITIVE COMPANIES THEIR ADDRESS

AND RATES:
We have two competitors in the surrounding area – SABBYS TATTOO
STUDIO in Lane – 4 Koregaon Park. The prices charged by them are as
follows: - Temporary Tattoo for Rs.100 per Sq inch-, Permanent Tattoo for
Rs.1, 500/ Inch then 750/Sq inch- and Gun Artworks STUDIO East Street
next to ADDIDAS Showroom. The prices charged by them are as follows: -
Temporary Tattoo for Rs.80/inch and Permanent Tattoo for Rs.1500/inch
then Rs.500/sq inch. Andy’s Tattoo Studio is specialized in Tribal Tattoos
and the prices charged by them are as follows: - Permanent Tattoo for
Rs.1500/inch then Rs.750/sq inch.
GAP BETWEEN DEMAND AND SUPPLY:
 As there is only one Tattoo studio in the entire city, demand is more as
compared to the supply, so there is monopoly in the market. So to enhance
the supply we can grab a huge amount of crowd.

COMPAIRISON OF PRICES AMONG COMPETITORS:

Gun
Sabby's Tattoo Artwork Andy’s
Tattoos (RS.) Studio s Studio Tattoo Studio
80/sq No Temp
Temporary Tattoos 100/ sq inch inch Tattoos
1500/sq
inch then 1500/sq inch
1500/sq inch then 500/sq then 750/sq
Permanent Tattoos 750/sq inch inch inch

SWOT ANALYSIS

Strengths:

 Creativity.
 Design Innovation.
 Young and Enthusiastic Staff.
 Extreme Care given to Hygiene.
 Fashion / Style.

Weaknesses:

 No prior business experience

 Establishing name will take time as it is a client oriented project

Opportunities:

 Large Potential Customer Base

 Excellent Location
 Success of Lifestyle Shows like Miami Inc guarantee interest
  Success at tattoo stalls run by us at various college festivals

Threats:

 Threat from better known and established studios like Sabby’s Studio in
Koregaon Park
 Misinformation about unsafe procedures used in tattoo parlors

Research on Tattoo market and trends with a bit of history

Nearly as long as people beings have existed, they have decorated their bodies in
some way or another. One of the most popular forms throughout human history has
been tattoos.

Tattoos have been used as everything from a means of identification to simply a

form of self expression and beautification.

While the way tattoos have been

applied to the skin has obviously
changed over
the years, the outcome is relatively
the same. Once placed, a tattoo is
usually a mark on the skin that can
last a lifetime.

In tattoo history, It used to be that

the general public had a negative
view toward tattoos. Tattoos were
typically reserved for sailors,
criminals and those looking to rebel
from society. However, times have
changed and now tattoos have
become a trendy part of everyday
fashion. People from every walk of
life get tattoos on their body. Around
the world, thousands upon thousands
of people are getting tattoos
everyday.
Since the market for tattoos is growing more and more each year, tattoo parlors are
in turn becoming increasingly more popular. While the price of a tattoo varies
greatly depending on the specific tattoo parlor and the amount of work the tattoo
requires, it’s usually not a cheap procedure. Additionally, most forms of tattooing
today still remain painful during the application and for days following the
application.

If you are thinking about getting a tattoo, there are many factors you need to
consider before proceeding. First of all, you need to realize that a tattoo is a long-
term decision. If you get a tattoo, you can’t simply wipe it away with a wash cloth
if you don’t like it. You should contemplate long and hard before actually getting a
tattoo. If you do decide that a tattoo is right for you, your next step is to find the
right tattoo parlor.

Not all tattoo parlors are built the same. While the price should be a factor in your
decision, it shouldn’t be the determining factor. The most important factor should
be your safety. Since tattooing is an invasive procedure that can cause bleeding,
it’s possible to contract diseases if the tattoo parlor doesn’t follow proper
procedures. You should make sure that the tattoo parlor is fully licensed, uses
quality tattoo equipment, and has a good reputation for safety and cleanliness. It’s
a good idea to go over this tattoo safety checklist to ensure your safety.

The final piece to the puzzle when choosing a tattoo parlor is making sure the
tattoo artists are talented. If you don’t get a personal recommendation, you should
ask the tattoo artist for examples of the prior work. Once you are satisfied with the
tattoo parlor you have chosen, you need to decide what kind of tattoo you want to
be placed on your body.

There are many different trends currently in the tattoo industry. For males, the
trend is to get a tattoo that is placed between the shoulder and the elbow. Other
trendy locations include the forearm, the upper back and the calf. In terms of size,
the tattoos that are placed on the upper back are the largest, while calf and forearm
tattoos are generally smaller.

As far the tattoo itself, many style trends are being followed today. The main
trend is tattoos using solely black ink. While multi-colored tattoos are possible
using today’s technology, black ink is currently preferred. As far as what the
tattooed image should depict, the choices are endless. Trends today include
religious passages, Chinese lettering, personal tributes and a wide array of detailed
artwork.

For females, the trendiest location for a tattoo is on the lower back. Other body
locations include the ankle, the lower stomach and the hip area. Tattoos for females
are usually smaller than male tattoos.

While the trend for males is the use of black ink, multi-colored ink is the trend for
females. The color red is especially popular at the moment. For lower back tattoos,
the shape of the tattoo is usually oblong and is used to accentuate the natural
curvature of the female body. The tattoos on the ankle, the lower stomach and the
hip area are usually much smaller. Common tattoo designs for females include
butterflies, flowers and intricate designs using a multitude of lines and color.

Once you have the tattoo on your body, the tattoo artist will usually put a bandage
over the tattoo. Keep this bandage on at least overnight to ward off infections.
Once you take off the bandage, you can clean the area with warm water and mild
soap. When drying the area, be sure to pat dry – do not rub the area. For about two
weeks to a month, you should avoid getting harsh soap on your tattoo. You should
also avoid submerging your tattoo in water for a long period of time. If you tattoo
begins to itch or peel, avoid scratching or picking at it. Doing so can damage not
only your tattoo but also your skin.

To ensure that your tattoo keeps its vibrancy over time, you should take steps to
protect it. You should keep your tattoo out of the sun because the sun can dull or
fade your tattoo over time. Keeping your tattoo covered is the best advice if you
are going to be in the sun for an extended period of time, although using sunscreen
over your tattoo is also a helpful alternative.

Since tattoos are becoming more and more popular, it’s not a surprise that tattoos
are becoming a part of the mainstream culture. Two television shows currently air
that depict the life of tattoo artists who work in tattoo parlors.

Current Perception Regarding Tattoos in India

 India's core cultural reference books, professional journals, newspapers and

magazines recognize tattooing as a well-established art form that, over the
last 10 years, has undergone dramatic changes. In the 1970s and the 1980s,
artists trained in traditional fine art disciplines began to embrace tattooing
and brought with them entirely new sorts of sophisticated imagery and
technique. Advances in electric needle machines and pigments provided
them with new ranges of color, delicacy of detail and aesthetic possibilities.
The physical nature of many local tattooing establishments also changed as
increasing numbers of operators adopted
  Equipment and procedures resembling those of medical clinics --
particularly in areas where tattooing is regulated by government health
agencies.
 The cultural status of tattooing has steadily evolved from that of an anti-
social activity to that of a trendy fashion statement in the 1990s. First
adopted and flaunted by influential actors, it has now become accepted by
ever broader segments of mainstream society. Today, tattoos are routinely
seen on rock stars, professional sports figures, fashion models, movie stars
and other public figures who play a significant role in setting the culture's
contemporary mores and behaviour patterns
 During the last fifteen years, two distinct classes of tattoo business have
emerged. The first is the "tattoo parlour" that glories in a sense of urban
outlaw culture; advertises itself with garish exterior signage; offers
"pictures-off-the-wall" assembly-line service; and often operates with less
than optimum sanitary procedures.
 The second is the "tattoo art studio" that most frequently features custom,
fine art design; the ambiance of an upscale beauty salon; marketing
campaigns aimed at middle- and upper middle-class professionals; and "by-
appointment" services only. Today's fine art tattoo studio draws the same
kind of clientele as a custom jewellery store, fashion boutique, or high-end
antique shop.
 Tattooing is recognized by government agencies as both an art form and a
profession and tattoo-related art work is the subject of museum, gallery and
educational institution art shows across the country.

Market Survey Conclusion:

Questionnaire

1. Are you aware of any tattoo parlour in your locality? Name them

2. Have you ever got a tattoo done?

3. Do you think it’s trendy to get a tattoo done?

 4. Would you like to get a tattoo on your body?

5. How often do you visit a tattoo parlour?

6. Do you have permanent or temporary tattoo? Why

7. How much are you willing to pay for a permanent tattoo?

8. What kind of tattoos would you prefer? And why?

 Temporary
 Permanent

9. Do you have any piercing on your body besides the basic ear hole?
 Yes
 No

10.What are your fears for getting a permanent tattoo done on your body?

11.What do you look for in a tattoo parlour

We questioned 100 people about what they think of having themselves tattooed.
We found out that 70 out of 100 people would certainly like to have their bodies
tattooed. We also came to know that people consider it a trend and not taboo. We
also came to know that there is a lot of craze for tattoos among the youngsters
especially among the college going crowd. So we would be having customers
mainly from age group between 18 to 30 years.

. The conclusion we drew after conducting the survey is

 Tattoo parlours are popular among the youth between the age group of 18-
30 years
 Most of them prefer temporary tattoos
 Hygiene is the primary concern
 Awareness of a tattoo parlour is created best by word of mouth publicity
 Needle pain is the biggest fear for a permanent tattoo
 Arm is the most common body part for a tattoo for men.
 Now the youth is more open to experiment art work on their bodies
 Even the girls are enthusiastic for a getting a tattoo done.

would you like to get a tattoo done?

yes
maybe
no

The above statistic helped us in targeting our customers in an appropriate way. We

also got a clear picture of who our target audience is and how to advertise our
tattoo parlour.
MARKETING STRATEGY

Now that we have established that the target market is between the age
groups 18 – 30, we will initially set up stalls outside the popular colleges
and distribute pamphlets and flyers highlighting the inauguration and
opening of our tattoo studio. We will offer to give the first 15 clients free
temporary tattoos if they get a permanent tattoo done from us.

Moreover, we will send bulk emails to employees of major IT companies in

Kalyani Nagar which will feature invitations to visit our new tattoo studio.
Also, within a few weeks we will approach Google and Rediff to display our
advertisements on their web site for a nominal fee. To create our own
community on facebook to target the youth in a large amount.

As we know that majority of young people are hooked on to the internet,

marketing and advertising through the internet will prove to be the most
 profitable media line for us. The Company will also develop its own online
website which will feature pictures of the Company’s artists’ portfolios, the
Company’s contact information, preliminary pricing, and directions to the
Company’s location. The Company will maintain a sizable amount of print
and traditional advertising methods within local markets to promote the
tattoo and body piercing services that the Tattoo Shop is selling

we also plan to set up stalls within during major college festivals and
cultural festivals featuring traditional tattoos and Indian designs.

Action Control:

Minutes of Meeting held at Pune on Jan 09, 2010 at 3:00 pm

Duration of the Meeting: 180Mins

People Present: Miss Mansee Desshmukh, Kapil Varadharajan, Ketan S. aindane,

Aditya S. Pachkhande

A presentation was made showing the research reports for the logo about the
general perception of tattoos in India, the ideas contributed by our team. A Markey
survey was conducted that helped us to decide our target market. For Sales
Promotion department we worked out a comprehensive promotional plan.
Complete working plan was discussed , The Projected Sales, Revenue Reports
were designed.

Method of Sales Promotion for the tattoo parlour

1. Invites for opening: - When the tattoo parlour will open or inaugurated,
invitations can be sent to college going students since they are our main
target audience “opening of the parlour”.

2. Membership: - Membership cards or offers can be given to customers in

order to promote customer loyalty. Hence, the customers will get to know
more about us and they can be updated about the parlour.
Special incentives will be given to the parlour members or the regular
members.
3. College events: - This is the most effective way to boost up the sales of a
tattoo parlour.
Since the target audience will be youth, so tattoo parlour can sponsor
College events like Rudra and international film festival, etc.
Promotional activities like- distributing the leaflets, standees, setting up a
stall in the events, etc can certainly be beneficial.

4. Free standing inserts: - Booklets or brochures of the tattoo parlour will be

distributed in the newspapers like Bombay times, Mumbai mirror, etc. The
brochures will contain all information about the tattoo parlour like features,
services, address, etc.

5. Online promotions: - The tattoo parlour will have an official website and
through the database, we will make many people aware of the parlour.
Even tie-ups with social networking sites will be beneficial.
The sites commonly used are: facebook, orkut, MySpace, twitter, etc
Online coupons will also be provided, so that customers can print coupons
and come to our store. Hence they get discounts or rebates.

6. Online registration/booking: -This is a unique type of service, in which

customers who will visit our site will register or book for coming to their
residence and do their tattoos and fill online forms giving details of what
sort of tattoos’ they want.
Booking can be done for marriage functions also, where tattoo parlour
people will come on marriage occasions for tattooing. (Similar to Mehndi
parlours.)

7. Online interactive promotion game: - The customers are put in an event.

This can either be done in the parlour or at their homes also.
The game will be like participitants will be asked a question on topic say-
“Indian culture” and the winner get a chance to make a tattoo of their
favourite design
or
 Since people are filmy buffs or bollywood fans, they would like to have a
tattoo of their favourite star, either name or initials, then the questions can be
asked on “BOLLYWOOD THEME”.

8. Referral discounts:- Offer incentives for repeat clients and referral discounts
to clients who send in their friends and family.

9. Reduce rates:- During occasions like Valentine’s Day, Friendship day the
customer will avail discount.
 Product Brief

About us: Our studio specializes in custom tattoo art and body piercing. Our artists
and piercers specialize in custom work, cover ups, fine lines and portraits.
Customers are ensured to specialized service and quality of work from us. We are
dedicated to quality work, customer service & the philosophy that every tattoo and
piercing, whether a tiny tattoo or full body art, a nose ring should be experience
worth remembering. We focus on customer hygiene and safety. No tattoo, piercing
or customer is lesser important than another

FEATURES:

1. Customization - Our studio specializes in custom tattoo art and body

piercing
2. Primary Moto is hygiene and safety
3. At INKHOLICS We have both male and female tattoo and piercing artists,
keeping in mind client comfortability.
4. We provide with a tattoo safety kit with post-tattoo care manual to all the
customers who get a permanent tattoo done .
5. We have a specialty of Indian theme for tattoos.

OUR GOALS

At Inkholics Inc.

 To focus on customer convenience and comfort level thereby providing the

in house facility to the clients.
  To provide our customers with the best tattoo designs.

 Our primary motto is safety and hygiene.

 To enhance Customer Relationship Management

 To create brand loyalty among the prospect customers, word of mouth

publicity being our most important medium of advertising.

UNIQUE SELLING POINT:

We provide you with services at call in your home itself. Unlike the other tattoo
parlours which do not provide this facility to it’s customers we are willing to take
this step further and satisfy our customer’s to the fullest
 MAN POWER PLANNING

Initially, we will have two permanent tattoo artists and one temporary tattoo artist.
We will also have a receptionist/cashier. Our permanent tattoo artist, Ketan S.
Saindane, has trained under Ben Irani from Mumbai and has worked there for six
months. Moreover, our temporary tattoo artist has a wide range of experience
thanks to his work at various college festivals. As and when business expands,
more artists will be hired.

Organizational Chart:

M
g
n
a
o
ti
p
e
c
n
P
a
r
m
T
R r
e
i
n
C
/
t
s
y
r
tt
r
h
s
A
T
o
a
e
i t
s
ti
n
a
t
e
K
(
t
a
k
n
p
e
S
K
.
l
i
V
M
(
s .
S
h
s

d
n
i
a
S
i
d
r
n
a
t
S
V
R
g
u
m
h
s
e
D n
)
e
a
j
)
n
h
k
FINANCIAL ASPECTS

Financial Objective : To Increase the Profit margin by 15 to 20% within next 3

years.

Underlying Assumptions

• The Tattoo Shop will have an annual revenue growth rate of 12.17% per
year.

• The Owner will acquire 321658 of debt funds to develop the business.

• The loan will have a 2 year term with a 15% interest rate.

ECONOMIC ASSESSMENT

Requirements:

1. Studio expenses:
The estimated cost for rental of a single room in Kalyani Nagar and related costs is
as follows:

 Refundable Deposit: Rs.2.5 lakhs

 Monthly Rent: Rs.35,000
 Electricity Charges: Rs.8000/month

2. Furniture and Fixtures:

The estimated cost for furniture and fixtures are:

 1 split air conditioner: Rs.35,000

 1 165 liters refrigerator: Rs.10,000
 1 5.1 speaker system with DVD changer: Rs.8,000
 2 Leather couches & chairs: Rs.75,000
 Fixtures & Fittings: Rs.45,000
  Mirrors: Rs.5000
 Desktop Computer: Rs.35,000
 Tattoo Machine: Rs.100000

Total of furniture and fittings: Rs.3, 13000

3. Tools and Equipment:

The estimated cost for tools and equipment is as follows:

 (3) Tattoo machines: Rs1,00000(one-time investment)

 Permanent Tattoo inks/colors:.1200/bottle
 Tattoo needle: Rs.500/needle
 Temporary tattoo dye: Rs.250/bottle

4. Salaries:
The estimated payment to employees is as follows:

 Permanent Tattoo artist: Rs.20,000/month / Artist (2 Artists)

 Temporary Artist: Rs.10,000/month
 Cashier/Receptionist: Rs.10000

Total salaries: Rs.60, 000/month

5. Advertising cost:
The estimated advertisement costs are as follows:

 Pamphlets/ Flyers/Others: Rs.30,000

Fixed Assets:

Particulars Amount
Air Conditioner 35000
Refrigerator 10000
 Speaker System 8000
Leather Couches 75000
Fixtures & Fittings 45000
Mirrors 5000
Computer 35000
Tattoo Machine (5 Machines) 100000
   
Total 313,000

Working Capital Requirement:

Particulars Amount
Electricity Bill 8000
Rent 35000
Stationary 5000
Telephone Bill 8000
Advertising 30000
Salaries 60000
Travelling & Conveyance 3200
Permanent Tattoo Ink (1200 Per Bottle * 70
Bottles Per Year)/12 7000
Temporary Tattoo Ink (1000 Per Bottle * 70
Bottles Per Year)/12 5833
Temporary Tattoo Dye (250 Per Bottle * 150
Bottles Per Year)/12 3,125
   
Total 1,65,158

Working Capital
Particulars Amount
Fixed Capital 313000
Working Capital 330316
   
Total 643316
Requirement:(For 2 months)

1,65,158 * 2= 330316

Sources of Finance:

Particulars Amount
Promoters Capital 321658
Bank Loan 321658
   
Total 643316

Calculation of Sales Revenue:

Particulars Amount
Temporary Tattoo 12 months * 500 * 100
Customers ( Monthly Customers = 8) 600000
Permanent Tattoo 12 months * 2000 * 120
Customers ( Monthly Customers = 10) 2880000
   
Total 3480000

Projected Income statement:

Particulars Amount
(A)_ Sales Revenue 3193500
   
(B) Expenses  
Electricity Bill 96000
Telephone Bill 96000
Stationary 60000
Rent 420000
Advertising 360000
Salaries 720000
Traveling & Conveyance 38400
Permanent Tattoo Ink (7000
* 12) 84000
Permanent Tattoo needle
(5000 * 12) 60000
Temporary Tattoo Ink
(5833 * 12) 69996
Temporary Tattoo dye
(3125 * 12) 37500
  2041896
Depreciation  
Air Conditioner 5250
Refrigerator 1500
Speaker System 1200
Leather Couches & chairs 7500
Fixtures & Fittings 4500
Mirrors 500
Computer 21000
Tattoo Machine 6250
Interest On Loan 48248.7
2137844.
  7
Total B  
   
1055655.
Net Profit (A - B) 3
   
334009.3
Less Tax - @ 31.64% 3
   
Net Profit After Tax 721645.9
 7
(Rounded Off) 721645

Return on Investment:

Particulars Amount
Net Profit 721,645
Total Cost Of Project 643,316
  112.17%

Projected Balance Sheet:

Liabilities Amount Assets Amount
Promoters Capital 321658 Air Conditioner 29750
35000
Less
Depreciation
5250
Loan 225160.6 Refrigerator 8500
Capital 10000
321658 Less
Less: - Depreciation
Installment 1500
96497.4
Speaker System 6800
8000
Less
Depreciation
1200

Net Profit 721645 Leather Couches 67500

75000
Less
Depreciation
 7500

Income Tax 334009.4 Fixtures & Fittings 40500

45000
Less
Depreciation
4500

Mirrors 4500
5000
Less
Depreciation
500

Computer 14000
35000
Less
Depreciation
21000

Tattoo Machines 93750

100000
Less
Depreciation
6250

Refundable 250000
Deposit
Cash at Bank & in 1087173
Hand
Total 1602473 1602473

Net Profit Division among the Partners:

Name Of Promoters Income (Monthly) Income (Annually)
Kapil Varadharajan 20045.69 240548.33
Ketan S. Saindane 20045.69 240548.33
Mansee Desshmukh 20045.69 240548.33

Total 721645

Sources of Finance:

Each partner will contribute Rs.107219.33 for capital.

A loan of Rs.321658 more will be required.

Break Even Analysis:

1. Variable Cost:

Permanent tattoo ink / colors = Rs.1200 / per bottle * 70 bottles (per year) = 84000
Permanent tattoo needle = Rs.500 / per needle * 120 needles (per year) = 60000

Temporary tattoo ink / colors = Rs.1000 / per bottle * 70 bottles = 70000

Temporary tattoo needle = Rs.350 / per needle * 100 (per year) = 35000
Tattoo Dye = Rs.250 / per bottle * 150 bottles (per year) = 37500

Variable cost = 286500

2. Revenue Generated:

Temporary tattoo – 600000

Permanent tattoo – 2880000
Total Revenue generated = 3480000

3. PROFIT VOLUME RATIO:

Profit Volume Ratio = (Revenue Generated - Variable Cost / Revenue

Generated)*100
Profit Volume Ratio = (3193500 / 3480000) * 100
Profit Volume Ratio = 91.76 %

4. FIXED COST:

Salary = 720000

General Exp. = 1321896

Yearly Expenses = 2041896

5. INTEREST ON BANK LOAN @ 15 % P.a:

= 48248.7

6. DEPRECIATION OF ASSETS @ 10 % P.a:

Value of Assets = 31300

7. FIXED COST:

= Yearly Exp. + Yearly Interest + Depreciation

= 2041896 + 48248.7 + 31300 = 2121444
8. DESIRED SALE TO ACHIEVE BREAKEVEN POINT:

= (Fixed Cost/profit Volume Ratio) * 100

= (2121444/ 91.76 %) * 100
= 2311948

9. ACTUAL EXPECTED SALE:

= Revenue Generated P.M X 12

= 290000* 12
= 3480000

10. BREAKEVEN POINT:

= (Desired Sale / Actual Expected Sale) * 100

= (2311948 / 3480000) * 100
= 66.43 %

11. SURPLUS SALE:

= (Actual expected sale – Desired Sale)

= (3480000 –2311948)
= 1168052

12. NET PROFIT INCLUDING FIXED COST & VARIABLE COST:

= (Surplus Sale * Profit Volume Ratio)

= (1168052 * 91.76 / 100)
= 1071804
 Contingency Plan

In the event of an economic downturn, the business may have a decline in its
revenues. Tattoos services are non-essential services, and as such, an economic
recession may result in a decline in top line income. However, the business will
operate a lean operation, and the high margin revenues generated by the business
will ensure the Company’s continued profitability during deleterious economic
conditions.

Exit Strategy

If the business is very successful, Mr. Varadharajan may seek to sell the business
to a third party for a significant earnings multiple. Most likely, the Company will
hire a qualified business broker to sell the business on behalf of the Tattoo Shop.
Based on historical numbers, the business could fetch a sales premium of up to 4
times earnings.