shoe laundry (group no. 6)

The shoe laundry

How you have recognized the opportunity &How was the idea was generated ?

The idea already exists.

Our idea is to take it further into newer markets.

The opportunity was seized taking into consideration the size of the market it caters to.

People’s disposable income and improved lifestyle lead us to expand the scope of the idea further.

How you have recognized the opportunity &How was the idea was generated ?

The concept of shoe laundry was the brain child of Sandeep Gajakas in 2004

A highly successful venture this concept has now penetrated into Tier 1 cities across India

Annual Turnover of 85 – 100 crores

The advantage is its presence in Uncluttered market space with no competition

Feasibility Analysis

Test market potential

Test Concept

Resources

Testing Market Potential

Kindly answer the following questions:1. Kindly rate the importance of footwear for you as per the

following options:• a. Shoes are meant for the basic purpose of protecting feet

(hence I’ll be satisfied with just a pair)• b. Shoes are a necessity but it’s good to have variety,• c. Shoes are essential fashion (I own a umpteen pairs)• d. Others please specify__________

2. How often do you buy shoes/ sandals?

Testing Market Potential3. What is the number of pairs of footwear you own? Specify.

4. Are there certain specific brands you prefer to shop from?a. Yes b. No.

5. If yes, then how rigid are you about shopping form them only and not shifting to a newly launched brand?

6. What are the most important features in a pair of footwear that you seek for every time you go shoe shopping?

7. What out of comfort or fashion/ design is more important in a pair of footwear?a. Comfort b. Style and fashion c. Both

Test Concept

1. Do you care for the footwear that you use daily or specifically? a. Yes( ) b. No( ) c. Sometime ( ) If yes what category of vehicle you use (please tick your

Preferences)a) Party wear shoes/sandals ( )b) Daily use ( )c) Multi use footwear ( )d) Only Branded ( )e) Both branded as well as unbranded ( )f) I care for them at any cost ( )

Test Concept2. Where do you use your precious footwear?

a) Personal use/ office use ( )b) Party use ( )c) Anywhere( )d) Other please specify ________________

3. What is your preferred location in your area for footwear purchase?

e) ________________________f) ________________________g) ________________________ h) ________________________

Test Concept

4. Tell me do you agree with the statement one (1) or statement (2)

Statement 1 : You must care for your footwear Statement 2 : its only waste of time but sometimes it is useful to mend the high priced footwear.

Response: a) Agree with the first b) Agree with the second c) No opinion

Test Concept

5. Are you aware of the best places of footwear repair and maintenance in your area? Yes ( ) No ( )

 IF yes where do you go for a the repair

a) High class repair ( )b) Local cobbler ( )c) Showroom ( )d) Anywhere else ( please specify______)

Test Concept6. Are you a user/consumer of branded footwear? If any please

specify?a) Yes ( ) please specify _________________ b) No ( )

7 Type of footwear used or proffered by you?a) Shoes( ) b) Sandals( )c) Chappals( ) d) High heels( )e) Boots( )f) Stilettos( ) lg) Leather footwear( ) h) OTHERS please specify ( ___________________ )

Tangible ResourcesRESOURCES

Physical Resources

OfficeComputers VehicleEquipments & solutions required for shoe-care

Financial Resources Self-FundedRs.2,00,000/-

Organisational Resources Customer Centric: Shoe Makeovers in time

Intangible ResourcesRESOURCES

Human ResourcesSkilled cobblersStock ManagerPickup & delivery Sales executives

Reputational ResourcesExclusive shoe Laundry ShoppeEnriching customers experience

Industry Analysis & Competitors Analysis

Industry Analysis

Industry Rivalry: Less competition, mostly cobblers (Unorganized)

Power of suppliers: High Power of buyers: Medium Potential entrants: Low Threat of substitutes:High

Rivalry Among Competitors Attractiveness

Low High

1 2 3 4 5

No. of competitors Large Small

Industry growth Slow Fast

Fixed Cost High Low

Threat from SubstitutesAttractiveness

Low High

1 2 3 4 5

Availability of close substitutes

High Low

Switching cost Low High

Substitutes price value Better Worse

Barriers to EntryAttractiveness

Low High

1 2 3 4 5Product differentiation

Low High

Switching cost Low HighCapital requirements

Small Large

Access to raw materials

Easy Restricted

Bargaining Power of BuyersAttractiveness

Low High

1 2 3 4 5Number of buyers

Small Large

Availability of substitutes

Many

Few

Switching cost Low HighBuyer’s threat of backward integration

High Low

Bargaining Power of Suppliers

Attractiveness

Low High

1 2 3 4 5Number of suppliers Small LargeAvailability of substitutes Few Many

Switching cost High Low

Supplier’s threat of forward integration

High Low

Business Model

Core Strategy Strategic Resources

Partnership Network Customer Interface

Core Strategy

Vision:– To make foot wear hygiene and shoe care a part of

every individual lifestyle by making the shoe laundry available to every customer at every corner of the country.

Mission: – Clean , Repair & deliver your footwear at your

doorstep , thereby enriching your daily footwear wearing experience.

FOCUS

DIFFERENTIATION OVERALL COST LEADERSHIP

STRATEGIC ADVANTAGE

Uniqueness perceived by the customer

Low cost Position

STRA

TEGI

C TA

RGET

Indu

stry

wi

de

Particular Segment

only23

Shoe Laund

ry

Strategic ResourceCore CompetencyProvide end to end solutions for your footwear

“How do we do it”a) Dismantle the footwearb) Wash it thoroughlyc) Inspect the footweard) Repair the footweare) Assemble the footwearf) Shine itg) Deliver the shoe back

Strategic ResourcePartnership Network : Startup Customer Interface:

Target MarketHNI, 5 star hotel guests, High end socialitesFulfillment & SupportGo to Market: Tie-up with hotels, Online Marketing , Track your orders onlinePricing: Differentiated pricingBasic Cleaning: Rs. 100Add on repairs & cleaning : Rs.50 extraNew footwear accessories: As per Standard rates

New Venture TeamManagemen

t Team(Owners) /Finance

Sales

Offline Online

Operations

Internal (Skilled

Cobbler's) External (Logistics)

New Venture Team

Founders or

Founder of a Firm

Key Employees Board

of Direct

ors

Other Professional

sLeaders &

Investors

Board of

Advisors

Management Team

New Venture Team

Board of Directors : Nitesh Amin, Hiren Bhanushali

Management Team : Nitesh Amin, Hiren Bhanushali, Kaustubh Satanekar, Mrityunjay Singh, Akash Vaswani, Bhakti Thakkar, Sowmya Charita

Team brings more talent, resources, ideas, and professional contacts to our Venture

New Venture Team Key Employees :

Supply Chain Head7 Clusters : 7 team heads for every area3 Area Coordinators

Other Professionals :Every cobbler will be tried to hook into the hubEvery Area will have a Rag Pickers as a collection agents (paid basis)Customer Care Unit : 1 TL + 15 call centre executives

Main Factory where all the repairs and maintenance work would be carried out

Forecast Sales Forecast:

Forecast India produces 2065 million pairs of shoes per year High end: 600 million No. of pairs sold in Mumbai: 15 lacs per year

1st Year 2nd Year 3rd Year 4th year0

2000400060008000

1000012000140001600018000

1200013500

1500016500

No. of Pcs

No. of Pcs

Profitability Basic Service Charges : Rs 100 Additional charges based on Service provided

Monthly expenses – 30,000 Rent – 15000 10,000 – 2 skilled cobbler 10,000 – equipment and solutions Pick up/Delivery – 5,000 Other Expenses – 10,000(Travelling, Bills, etc)

No. of pairs serviced per month – 1000Total Income – 100,000 + 5000 = 105,000/ monthProfit = 55000/month

Profitability

Liquidity

Efficiency – We will use our resources very productively. Productivity Per day/ Cobbler - 25 Delivery Time – 2-3 days

Stability

Final Business Plan • Concept of shoe laundryIdea Generation• HNI, 5 star hotel guests, High end

socialitesMarket Potential

• Tangible:- Office space, Computers, Vehicle, etc.Intangible:- Skill & ReputationResources

• Moderately attractive industryIndustrial Analysis• Focus DifferentiationCore Strategy• Providing end to end solutions for

your foot wearsCore Competency

• Differentiated pricingPricing

Group No. 6