Download - 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