SUBMITTED BY;SUBMITTED BY;ANAND KUMARANAND KUMAR

PGDBM (Finance)PGDBM (Finance) ROLL N0- 1329ROLL N0- 1329

ExecutiveExecutive SummarySummary

This report consists of the business plan This report consists of the business plan for the opening of a new retail store. The for the opening of a new retail store. The motive of the opening of the retail store motive of the opening of the retail store is the knowledge behind it. Retail is one is the knowledge behind it. Retail is one of the very growing sectors in Indian of the very growing sectors in Indian economy. An economy store catches the economy. An economy store catches the customer even we need to serve the best customer even we need to serve the best in the best manner we automatically get in the best manner we automatically get the success in a retail business. For the success in a retail business. For starting up a retail store a huge cost will starting up a retail store a huge cost will be required for the operation facilities be required for the operation facilities and purchase of items.and purchase of items.

INTRODUCTION TO RETAIL INTRODUCTION TO RETAIL

The most promising and booming industry of future is retailing. AT Kearney, a well-known international management consultancy, recently identified India as the ‘the most attractive retail destination’ globally from among thirty emergent markets (2007). According to a Knight Frank survey, India ranks fifth amongst the 30 emerging retail markets in the developing countries.

Mission and VisionMission and Vision Mission :Mission :Caring is in our instinct and customer

satisfaction is our habit.To provide quality products of wide

range and variety under one roof at reasonable cost.

Vision:Vision:To open “Dailize” in all major parts

of jaipur.To be retail shop leader in Jaipur by

2014.

IndustryIndustry This is product based industry. In This is product based industry. In

this we will be dealing with FMCG this we will be dealing with FMCG products of different known products of different known brands like : P&G, HUL, Godrej, brands like : P&G, HUL, Godrej, ITC, Nestle, Cadbury India, Dabur ITC, Nestle, Cadbury India, Dabur India, Britannia. Staples (pulses, India, Britannia. Staples (pulses, ice, spices, flour, oils) of wide ice, spices, flour, oils) of wide range and variety. Dairy products range and variety. Dairy products of Saras, Amul, Krishna. Fresh of Saras, Amul, Krishna. Fresh Vegetables and fruits. Vegetables and fruits.

Business DescriptionBusiness Description

The concept of our business is to provide quality FMCG products of all known brands, staples of wide range and variety, fresh vegetables, fruits, dairy products under one roof at reasonable price with exciting offers and value added services to the customers.

Business FormationThere are so many things to be There are so many things to be

considered when wanting to considered when wanting to start our own business. We start our own business. We will consider running retail will consider running retail business in partnership. It will business in partnership. It will be limited partnership. We be limited partnership. We will be signing a legal will be signing a legal partnership agreement in the partnership agreement in the best way to go about it. best way to go about it.

Intended Market Intended Market EnvironmentEnvironment All lower middle class, middle class, All lower middle class, middle class,

upper class, lower upper class upper class, lower upper class segment of the society, will be our segment of the society, will be our potential customer. potential customer.

In today’s society people want to get In today’s society people want to get variety of products under one roof, so variety of products under one roof, so that they don’t need to go to ten that they don’t need to go to ten different shops for the required different shops for the required things.things.

Dailize provide wide variety and range Dailize provide wide variety and range of daily products under one roof at of daily products under one roof at reasonable price and value added reasonable price and value added services. services.

MARKET ANALYSISMARKET ANALYSIS POPULATION :- We are looking to open a POPULATION :- We are looking to open a

new retail store in shyam nagar, sodala, new retail store in shyam nagar, sodala, jaipur. This area is densely populated.jaipur. This area is densely populated.

PER CAPITA INCOME :- It is one of the very PER CAPITA INCOME :- It is one of the very important factor which one needs to important factor which one needs to analyze, this provided us with information analyze, this provided us with information that we need to target middle class and that we need to target middle class and lower upper class.lower upper class.

AGE MIX :- It is also one of the factors that AGE MIX :- It is also one of the factors that which age gender are maximum in which age gender are maximum in population so we can get up with the stock population so we can get up with the stock in the same manner.in the same manner.

BUYING BEHAVIOUR :- This factor helps us to BUYING BEHAVIOUR :- This factor helps us to forecast the total sales of the store & the forecast the total sales of the store & the stocks we need.stocks we need.

Business locationBusiness location We are looking to open a new retail We are looking to open a new retail

store in Shyamnagar, Sodala, Jaipur. store in Shyamnagar, Sodala, Jaipur. A space of 1000 square feet at main A space of 1000 square feet at main road, Sodala. Reason for opening the road, Sodala. Reason for opening the retail store in this location are :retail store in this location are :

Densely populated area with high Densely populated area with high average of nuclear families. average of nuclear families.

No retail outlet, departmental store No retail outlet, departmental store present in this area or any nearby present in this area or any nearby area up to 1.5 kms.area up to 1.5 kms.

The decided location has a good foot The decided location has a good foot count.count.

Space for parking available.Space for parking available.

LocationLocation

LAZEELAZEEZZ

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kmskms

Business Layout 25’ /40’(1000 square ft) Fruits Fresh Vegetables Customer desk

Offers display

Ready foods

Instant foods

FMCG Non Foods Products

Frozen and Dairy Products BeveragesFrozen and Dairy Products Beverages

Counter

Counter

Entrance

Staples:-• Cereals• Pulses• Flours• Spices• Oils

FMCG Foods:-•Ready Foods:-•Savories•Biscuits•Confectionery•Sauces•Pickles

Beverages:-•Cold drinks•Tea & Coffee•Health Drinks

Instant Foods:•Noodles and Soups•Desserts•Ready mixes•Break Fast Cereals•Baby Foods•Ready To Eat

Chilled & Frozen:-•Dairy•Frozen

B. Fruits & Vegetables:-•Daily Fresh Needs:-•Fruits•Vegetables•Eggs

FMCG Non Foods:-Household Needs:-•Detergents•Household cleaning•Fresheners & Pesticides

Toiletries:-•Skin Care•Hair Care•Oral Care•Sanitary•Men’s Grooming•OTC•Baby Needs

Beauty Aids:-•Cosmetics

Store Layout Store Layout

Special OffersSpecial Offers Fresh Vegetables/ fruitsFresh Vegetables/ fruits Household NeedsHousehold Needs

FMCG ProductsFMCG Products StaplesStaples Cash CounterCash Counter

Human ResourceHuman ResourceFor our store there For our store there should beshould be

One store managerOne store manager One assistant manager One assistant manager Staff Supervisor – 2Staff Supervisor – 2 Staff – 5Staff – 5 Guard - 2Guard - 2

Competition Competition

Nearby Kirana StoresNearby Kirana Stores Nearby Vegetables/ Nearby Vegetables/ fruits mandifruits mandi

Mobile Vendors Mobile Vendors

Competitive Competitive AdvantageAdvantage My store will be competitive My store will be competitive

in price with other store in in price with other store in the market, but I will not the market, but I will not meet discount store prices. I meet discount store prices. I will shop competitors will shop competitors regularly and make sure that regularly and make sure that I am never more than 15% I am never more than 15% higher than the lowest price higher than the lowest price in the market.in the market.

MarketingMarketing Product Mix – Product Mix – • FMCG Products of different known FMCG Products of different known

brands like P&G, HUL, Godrej, ITC, brands like P&G, HUL, Godrej, ITC, Nestle, Cadbury India, Dabur India, Nestle, Cadbury India, Dabur India, Britannia.Britannia.

• Staples (pulses, rice, flour, spices Staples (pulses, rice, flour, spices etc) of wide range (from economical etc) of wide range (from economical price to premium price) and variety.price to premium price) and variety.

• Fresh vegetables, fruits.Fresh vegetables, fruits.• Dairy products of Saras and Amul. Dairy products of Saras and Amul.

Continued… PricingPricing : The pricing strategy will be : The pricing strategy will be

mixture of Pricing below competition, mixture of Pricing below competition, Psychological pricing, multiple pricing and Psychological pricing, multiple pricing and discount pricing.discount pricing.

PromotionPromotion : The mix of public relations, : The mix of public relations, advertising, educational programs and advertising, educational programs and other tools the company will employ to other tools the company will employ to drive demand for its products or services. drive demand for its products or services. For promotion and advertisement the For promotion and advertisement the best way is the print media and the best way is the print media and the electronic media and time to time electronic media and time to time some promotional activities such as some promotional activities such as sale festival, diwali festival, win prizes sale festival, diwali festival, win prizes over billing size, free items on every over billing size, free items on every purchase made of 500, 1000.             purchase made of 500, 1000.             

Communication MixCommunication MixMediumMedium Reach Reach Cost Cost MarketMarket

Catalogs/Catalogs/pamphletspamphlets

IndividualIndividual ModerateModerate MassMass

Direct Direct mailsmails

IndividualIndividual LowLow PersonalPersonal

DisplayDisplay LocalLocal LowLow In-storeIn-store

InternetInternet ExceptionalExceptionally broadly broad

ModerateModerate Mass/special Mass/special interestinterest

Local Local newspapernewspaper

ss

BroadBroad ModerateModerate massmass

Word of Word of MouthMouth

IndividualIndividual Low Low PersonalPersonal

FlyersFlyers LocalLocal LowLow CustomCustom

Promotional PlanPromotional Plan Special offer on every Special offer on every

Wednesday, like loot offers i.e. Wednesday, like loot offers i.e. with every purchase of Rs 200, with every purchase of Rs 200, one kg of Potato or Tomato free. one kg of Potato or Tomato free.

Daily offer like half Kg tide free Daily offer like half Kg tide free with every purchase of Rs 500 with every purchase of Rs 500 and above.and above.

Combo pack offers. Combo pack offers.

Added Value Added Value StrategiesStrategies Best ServiceBest Service: Applicable to FMCG : Applicable to FMCG

Products. In this we will focus on Products. In this we will focus on customer intimacy based on personalized customer intimacy based on personalized relationship and individual responsiveness relationship and individual responsiveness that saves customer shopping time and that saves customer shopping time and anxiety. Include the specialized products anxiety. Include the specialized products to meet the needs of individual customers. to meet the needs of individual customers.

Lowest Price Lowest Price : Applicable to vegetables, : Applicable to vegetables, grocery items. Leads to price saving and grocery items. Leads to price saving and efficient shopping experience. This will be efficient shopping experience. This will be achieved by elimination of operational achieved by elimination of operational waste and cost.waste and cost.

Financial Analysis Financial analysis of this plan has been Financial analysis of this plan has been

done on the basis of other retail store done on the basis of other retail store operating in the city. operating in the city.

As we are not in manufacturing or As we are not in manufacturing or production industry, it will not be production industry, it will not be feasible to calculate the Breakeven feasible to calculate the Breakeven point due to product mix, rather it can point due to product mix, rather it can be said on the basis of market potential be said on the basis of market potential and projected budget that the and projected budget that the investment will be recovered within two investment will be recovered within two years and around 20% profits will be years and around 20% profits will be made of total investment.made of total investment.

The The projected budget statement.