business plan.docx

BUSINESS PLAN

GIFT SERVICE STORE

Submitted by: - Harshita Saini

M.sc final

Lady Irwin College

COVER SHEET

Name of the Business: What is in the box

Name of the Entrepreneur and add of the Unit: Shop no G-21,

Manish Abhinav plaza,

Near Ashirwad chowk,

Main road, Dwarka Sec-5,

New delhi-75.

Name of the products/services: Gift gallery

Tel. No. : 8447635660

Email and website add: [email protected]

Constitution of the firm: sole proprietorship

Educational qualification of the Entrepreneur:

Work experience of the Entrepreneur:

Proposed Locations (If any):

Name and address of the bank/ financial Institution which you want to deal with:

EXECUTIVE SUMMARY

Gifts occupy an important place in our social life. They build our relations with other people.

We exchange gifts with other people on different festivals, events etc. Gifts speak our love

for one other. There are gifts which are given merely out of material considerations. Our

religion attaches great importance to the exchange of gifts. The selection of gift is an art.

Different creative gifts become a part of the memory of the person who receives. Gifts are

token of love, trust and good will. But, now in this busy schedule life no one has time to

create gift, choose gifts and give them to their friends and relatives. By foreseeing this

requirement we are aiming to open a gift shop which will offers a wide range of cards and

gifts. Our motto is “fun, functional & funky”. We are providing gifts for all purpose and for

all age groups.

‘What is in the box’ located in the Dwarka sec-5, Abhinav plaza, New-Delhi-75 and

specialized in an assortment of high-quality gifts ranging from greeting cards to home

accents. We cater to middle and upper class clients and affluent clients. Our store image

exemplifies what customers are seeking in home accents and gifts which is a "Modern &

Urban Life Style" look and feel. What differentiates our company from other specialty retail

shops are the printing services we offer, our "one-of-a-kind" product line and a number of

exclusive, proprietary products we designed ourselves. Before ‘What is in the box’ grand

opening we will have established our website.

SERVICE

We also provide different membership to our customers, in which we provide service of free

delivering gifts to our customers at their desired budgets. Only they have to take our

membership and forget the worry of keeping reminder about relative’s birthdays and

anniversary. We will provide the gift from your chosen budget. Remind you and deliver the

gifts to your relative doorstep. All these services are provided to our membership holders.

We are providing three types of membership which is mentioned in the membership form.

Membership Form

Name:-

Address: - Photo

Mobile no: - Phone no:-

Email address:-

Number of occasion:-(Lock a chart given below)

Type 1 Type 2 Type 31000-2000 Rs 2000-3000 Rs 3000-5000 Rs

Occasion Rs

Occasion Rs

Occasion Rs

05 5000

05 7500

05 10000

10 9500

10 12000

10 19000

15 13500

15 18000

15 30000

20 17000

20 25000

20 50000

Gift budget:-

Details of gift:-

Remark (if any):-

Date:-

Name with Signature

Address where the gifts to be delivered

ADRRESS 1: -

ADRRESS 2: -

ADRRESS 3: -

ADRRESS 4: -

ADRRESS 5: -

ADRRESS 6: -

ADRRESS 7: -

ADRRESS 8: -

ADRRESS 9: -

ADRRESS 10: -

ADRRESS 11: -

ADRRESS 12: -

ADRRESS 13: -

ADRRESS 14: -

ADRRESS 15: -

ADRRESS 16: -

ADRRESS 1 7: -

ADRRESS 18: -

ADRRESS 19: -

ADRRESS 20: -

COMPANY SUMMARY

INTRODUCTION

Our store is first one who is providing specialty cards and gifts that specializes in "one-of-a-

kind" at affordable prices. Also we are providing service of free home delivery of gifts to

their or their relative house at birthday, occasion, and festivals. At presently, no other gift

shop, store or gallery is providing this unique service, and which make us completely

different from others.

OBJECTIVES

Generate total sales revenue to establish a profit at the end of year one.

Implement e-commerce capabilities to our store.

Establish an annual growth rate of approximately 20%.

Maintain a direct cost of sales of 45% or less.

Establish 50% of our merchandise as proprietary products in year two.

Establish our company as a premier "Brand Recognized" name throughout the community in

year one.

MISSION

‘What is in the’ box is a specialty cards and gifts that specializes in "one-of-a

kind" not commonly found in the larger retail market. We are dedicated to providing

customers exceptional customer service in a visibly relaxing and engaging

shopping environment. Our mission is to provide customers with unique, high-quality gifts at

affordable prices.

KEYS TO SUCCESS

Acquire and personally design a product line of "one-of-kind" handcrafted and unique

products.

Establish a loyal customer following by offering seasonal promotions / discounts, distributing

direct mail postcards, offering quality merchandise at affordable prices, and providing a

visibly inviting and comfortable shopping environment.

Establish a "Brand Identity" that personifies high-quality and outstanding customer service.

ORGANISTATIONAL CHART

MARKET ANALYSIS

The ideal customer we expect to serve is:

Middle to Upper Class

Youth

Primarily Female

30-75 Years of Age

ME

DELIVERY BOY

PEON

ASSISTANT

Educated

Homeowner

Quality Conscious

Value Conscious

Family Oriented

We will attract these customers by offering unique and uncommon product selections not

found in the mass-market retail stores.

More and more consumers are seeking independent retailers that offer them the feel of home

with a more personalized shopping experience. As consumers become more time-deprived,

they are looking to shop at stores whose service offerings are as equal in quality and value to

their products.

To distinguish ourselves from surrounding specialty retailers, we provide numerous

customized services that offer customers a satisfying and unique shopping experience.

Plastic Gift Cards: Gift cards are available to customers when purchasing for gift

recipients may become a little difficult.

Graphic Design/Photography Services: These services are provided to complement

the personalization of our printing services and products. Equipment available to

support these services includes:

We also provide different membership to our customers as per their budget, in

which we provide service of free delivering gifts to our customers at their desired

budgets. Only they have to take our membership and forget the worry of keeping

reminder about relative’s birthdays and anniversary. We will provide the gift from

your chosen budget. Remind you and deliver the gifts to your relative doorstep. All

these services are provided to our membership holders. We are providing three types

of membership which is mentioned in the membership form.

COMPETITION AND BUYING PATTERNS

Brand name products sell well in stores that maintain a good selection, good location, and

knowledgeable, friendly employees. These are the most important factors when selling

collectibles and gifts.

There is only our store in the Abhinav plaza area that carries a wide variety of collectible

gifts. Other stores in the plaza area carry one or two categories of gifts but do not offer a wide

variety of collectible gifts.

COMPETITIVE EDGE

We will establish itself competitively as a unique retail environment through product offering

and friendly, personal customer service. With Ayushman hospital, drink and dine restaurant,

fire and ice restaurant, and different offices present in the Abhinav plaza and nearby plazas,

markets and also the Indraprastha University, houses all located within proposed site, we will

attempt to offer items that appeal to this diverse population.

STRATEGY AND IMPLEMENTATION SUMMARY

‘What is in the box’ will develop product offerings and marketing strategy to increase its

customer base while driving sales and profit.

MARKETING STRATEGY

‘What is in the box’ will focus its marketing efforts by advertising. Advertisements would be

provided on the T.V. channels, radios, newspaper, magazines, pop ups on internet, and

through blogs created. Our service information is also present on our service website. We will

also increase consumer awareness, retain the existing customer base and promote sales via

seasonal postcard and newsletter mailings. The mailings will announce special events or

holiday specials during the year. These events will be used to sell slow-moving products and

vendor special promotions. This means our marketing resources will be centred on both sales

promotions (events, displays) and personal sales (customer service, friendly atmosphere).

SALES STRAREGY

We will approach sales from a salesperson-customer relationship basis. All customers will be

assisted in a very personal manner. Gathering key customer information and seeking

performance feedback on the products and services offered will assist us in the following

ways:

Targeting our marketing efforts more effectively.

Developing product offers and merchandising formats that will increase sales.

Developing services that enhance the shopping experience.

Increase awareness of ‘what is in the box’ within the retail consumer marketplace.

Develop future sales opportunities that allow for continued growth of the business.

MARKETING

Marketing is the activity, set of institutions, and processes for creating, communicating,

delivering, and exchanging offering that have value for customers, clients, partners, and

society at large. The management process through which goods and services move from

concept to the customer. It includes the coordination of four elements called the 4 P's of

marketing:

(1) Identification, selection and development of a product,

(2) Determination of its price,

(3) Selection of a distribution channel to reach the customer's place, and

(4) Development and implementation of a promotional strategy.

Marketing is based on thinking about the business in terms of customer needs and their

satisfaction. Marketing differs from selling because "Selling concerns itself with the tricks

and techniques of getting people to exchange their cash for your product. It is not concerned

with the values that the exchange is all about. And it does not, as marketing invariable does,

view the entire business process as consisting of a tightly integrated effort to discover, create,

arouse and satisfy customer needs." In other words, marketing has less to do with getting

customers to pay for your product as it does developing a demand for that product and

fulfilling the customer's needs.

“Marketing is the process by which companies create customer interest in products or

services. It generates the strategy that underlies sales techniques, business communication,

and business development. It is an integrated process through which companies build strong

customer relationships and create value for their customers and for themselves.”

The heart of the business success lies in its marketing. Most aspects of your business depend

on successful marketing. The overall marketing umbrella covers advertising, public relations,

promotions and sales. Marketing is a process by which a product or service is introduced and

promoted to potential customers. Without marketing, your business may offer the best

products or services in your industry, but none of your potential customers would know about

it. Without marketing, sales may crash and companies may have to close.

Features of Marketing

Getting Word Out - For a business to succeed, the product or service it provides

must be known to potential buyers. Unless the business is known in the community

and have communication with your customers readily available, you have to use

marketing strategies to create product or service awareness. Without marketing, your

potential customers may never be aware of your business offerings and your business

may not be given the opportunity to progress and succeed. Using marketing to

promote your product, service and company provides your business with a chance of

being discovered by prospective customers.

Higher Sales- Once your product, service or company gets on the radar screen of

your prospects; it increases your chances that consumers will make a purchase. As

awareness becomes a reality, it is also the point where new customers start to spread

the word, telling friends and family about this amazing new product they discovered.

Your sales will steadily increase as the word spreads. Without employing marketing

strategies, these sales may not have ever happened; without sales, a company cannot

succeed.

Company Reputation- The success of a company often rests on a solid reputation.

Marketing builds brand name recognition or product recall with a company. When a

company reaches the high expectations of the public, its reputation stands on firmer

ground. As your reputation grows, the business expands and sales increase. The

reputation of your company is built through active participation in community

programs, effective communication- externally and quality products or services,

which are created or supported by marketing efforts.

Healthy Competition- Marketing also fosters an environment in the marketplace for

healthy completion. Marketing efforts get the word out on pricing of products and

services, which not only reaches the intended consumers, but also reaches other

companies competing for the consumers’ business. As opposed to companies that

have a monopoly on products and services that can charge almost any price,

marketing helps keep pricing competitive for a business to try to win over consumers

before its competition does. Without competition, well known companies would

continue to sell while lesser known companies or new companies would stand little

chance of ever becoming successful. Marketing facilitates the healthy competition

that allows small businesses and new businesses to be successful enter and grow in

the marketplace.

Considerations- Although marketing is hugely important for a business to succeed, it

can also be very expensive. In its first year, a company might spend as much as half

of its sales on marketing programs. After the first year, a marketing budget can reach

as much as 30 percent sometimes more of the annual sales. A marketing program that

gives your company the best chance is a healthy mix of different forms of marketing,

such as website development, public relations, print and broadcast advertising, design

and printing for all print materials, trade shows and other special events.

MARKETING MIX

The marketing mix and the 4 Ps of marketing are often used as synonyms for each other. In

fact, they are not necessarily the same thing.

"Marketing mix" is a general phrase used to describe the different kinds of choices

organizations have to make in the whole process of bringing a product or service to market.

The 4Ps is one way – probably the best-known way of defining the marketing mix, and was

first expressed in 1960 by E J McCarthy.

The 4Ps are:

Product (or Service)

Place

Price

Promotion

The following describes the four P's of marketing:

Product

Products are the goods and services that your business provides for sale to your target market.

When developing a product you should consider quality, design, features, packaging,

customer service and any subsequent after-sales service.

Place

Place is in regards to distribution, location and methods of getting the product to the

customer. This includes the location of your business, shop front, distributors, logistics and

the potential use of the internet to sell products directly to consumers.

Price

Price concerns the amount of money that customers must pay in order to purchase your

products. There are a number of considerations in relation to price including price setting,

discounting, credit and cash purchases as well as credit collection.

Promotion

Promotion refers to the act of communicating the benefits and value of your product to

consumers. It then involves persuading general consumers to become customers of your

business using methods such as advertising, direct marketing, personal selling and sales

promotion.

MARKETING MIX FOR ‘WHAT IS IN THE BOX’

PRODUCT DESCRIPTION

The following is an overview of our product line by category:

Printing Products:

Brochures

Business cards

12-month calendars

Special occasion cards: Greeting cards.

Photo restoration/photo enlargements

2-year pocket planners

Promotional materials

Home Accessories:

Bamboo garden vase collection

Decorative and scented candles

Framed artwork

Shadow boxes

Wine accessories

Tabletop Accents: Coffee mugs, place mats, platters and coasters

Personal Care Accents:

Scented body lotion

Scented bath salt

Facial and body soaps

Body gel

Aromatherapy products

SERVICE

We also provide different membership to our customers, in which we provide service of free

delivering gifts to our customers at their desired budgets. Only they have to take our

membership and forget the worry of keeping reminder about relative’s birthdays and

anniversary. We will provide the gift from your chosen budget. Remind you and deliver the

gifts to your relative doorstep. All these services are provided to our membership holders.

We are providing three types of membership which is mentioned in the membership form.

PLACE

‘What is in the box’ located in the Dwarka sec-5, Manish Abhinav plaza which is main

market of Dwarka and also nearer to various restaurant, university and offices. So the place is

easy to reach for more number of customers and of different category, which will no doubt

increase our sale. Also the information of place is provided on the webpage of the gallery,

blog created, advertisements on the T.V, magazines, newspaper, internet, and face book. So

that people easily reach to us.

PRICE

Product pricing structures will be based on cost-plus and competitive pricing. Cost-plus

pricing is basing the price on the basis of all costs plus a mark-up to cover overhead costs.

Our mark-up cost is 33%. All orders will require a 50% deposit upon receiving final

shipment. For bulk orders, a 50% deposit is required and a 15% discount will be given to

customers. There will be seasonal and periodic sales on merchandise due to the possible

overstock of inventory.

Design and Photography Service Fee Structures will be determined by the particular

requirements of individual projects. Typically, compensation to ‘What is in the box’ includes

a retainer design fee in addition to the cost plus system of billing for supplies and materials.

This structure accounts for research, design time and consulting. Although our products are

high-end and stylish, our pricing structure remains affordable and in-line with other specialty

gift retailers. Our pricing structure is also based on the value the customers place on these

products.

PROMOTION

Our service and products message would be provided on different colleges and localities and

is sold free of cost. Advertisements would be provided on the T.V. channels, radios,

newspaper, magazines, pop ups on internet, and through blogs created. Our service

information is also present on our service website.

We will utilize our own printing capabilities to publish business cards, brochures and

promotional postcards. This approach will definitely reduce our monthly advertising costs.

Initial costs will be planned accordingly and kept to a minimum. The shop recognizes the

importance of its image, first-time impressions and customer service and it will not sacrifice

this in order to satisfy the bottom line.

It is anticipated that marketing costs will be significantly higher in the first three months of

business. Marketing activities will be closely monitored and constantly analyzed to decide

what marketing activities are successful and what are not. A marketing budget will be set for

the first store and for each subsequent store.

Because our service and products are unknown to the general consumer, marketing activities

are vitally important. We plan on implementing several marketing strategies as outlined in the

marketing section of this business plan. To establish service and brand awareness, we will

give-away small booklets to encourage first timers to try our service. Although we have

quality service, building a loyal customer base will take time. We realize that training and

empowerment of our employees will be reflected in their customer service and that word-of-

mouth advertising will be paramount to our success.

BUISNESS RISKS

The possibility that a company will have lower than anticipated profits, or that it will

experience a loss rather than a profit. Business risk is influenced by numerous factors,

including sales volume, per-unit price, input costs, competition, and overall economic climate

and government regulations. A company with a higher business risk should choose a capital

structure that has a lower debt ratio to ensure that it can meet its financial obligations at all

times.

Competition

Archies gallery is very well known gift gallery in India and its franchises are more than 350

in above 100 cities. It could create a business risks in future. It known as a super brand for the

gifts.

Inability to control costs/rising input prices

Low margins mean that costs have major effects on profitability.

Wrong price image

Price image can often be more important in determining sales than actual product prices.

Adjusting complex pricing and branding strategies to adapt to trends such as shifting

consumer behavior is therefore a constant challenge.

Failure to respond to shifting consumer behavior

During the recent recession, consumers reduced consumption, cut back on lavish and

impulsive shopping behavior, and increasingly used online price- comparison sites. This

change in behavior may be so far off the trend line that a return to pre-recession consumption

patterns may no longer be realistic.

FINACIAL PROJECTION

FIXED CAPITAL

Land, Area & Value

S.No. Description Cost(Rs.)

Land (rent per month) Rs.35,000/-

Total ( annually) Rs4,20,000/-

Office Equipment

S.No.

Description Quantity Cost (Rs.) Total

1 Laptop 1 Rs. 30,000/- Rs.30,000/-

2 Computer 1 Rs.15,000/- Rs.15,000/-

3 Printer 1 Rs.12,000/- Rs.12,000/-

4 Air-conditioner 1 Rs.20,000/- Rs.20,000/-

5 Fan 1 Rs.3000/- Rs.3,000/-

6 Bike 1 Rs.50,000/- Rs.50,000/-

7 Fittings 1 Rs.1,00,000/- Rs.1,00,000/-

8 TOTAL Rs.2,30,000/-

TOTAL FIXED CAPITAL: Rs.6, 50,000/-

WORKING CAPITAL

Human Resource Capital (annually)

S.No. Workers Number Annual Cost

(Rs.)

1 Assistant 1 Rs.1,20,000/-

2 Delivery boy 1 Rs.96,000/-

3 Peon 1 Rs.72,000/-

4 Total Rs. 2,88,000/-

Other Expenditure (annually)

S.No.

DescriptionAnnual Cost

(Rs.)

1 Raw Material Rs.9,50,000/-

2 Electricity Rs.30,000/-

3 Telephone Rs.18,000/-

5 Stationary Rs.12,000/-

6 Transport Rs.60,000/-

7 Maintenance Rs.25,000/-

8 Advertising & Publicity

Rs.1,80,000/-

9 Permit and Licenses Rs.800/-

10 Utilities and internet Rs.7000/-

11 Cellular phone Rs. 12,000/-

12 Insurance Rs. 2000/-

13 Delivery cost Rs. 45,625/-

Total Over heads Rs. 13,42,425/-

TOTAL WORKING CAPITAL:

1) Total Investment

Total Fixed Capital = Rs. 6, 50,000/-Total Working Capital = Rs.16, 30,425/-

TOTAL = Rs. 22, 80, 425/-

2) Cost of ProductionTotal Recurring Expenditure (Working capital) = Rs. 16, 30, 425/-Depreciation on Machinery = Nil Depreciation on Furniture, tools & equipment s = Rs. 2, 30,000/-

TOTAL COST OF PRODUCTION = Rs. 18, 60, 425/-

3) Turnover Per Year Total Turnover (approx.) =

4) Net Profit per year = Total Turnover/ year– Total Investment

5) Net Profit Ratio = Net Profit X 100 Sales Turnover

6) Rate of Return = Net Profit (per year) X 100 Total Investment

business plan.docx

Documents

exchange of gifts

executive summary gifts

gift budget

gift shop

details of gift

gift gallery

selection of gift

different membership