BUSINESS PLAN ON ONLINE GROCERY SHOP

HATBAZAR.COM
Executive Summary
Hatbazar online Grocery Stores have the motive to make life easier for the people who have
little time for shopping and providing wide variety of assortment. There is a great craze for
online shopping in our market and this is the high time for grasping the market share and taking
the fast mover advantage. As grocery products are the daily need of a person it will have high
and continue demand. It will focus on wide verity of products and quality products. Our special
effort will be on faster delivery.
Introduction

With the rapid down fall of world economy and dot-com companies in recent years many brick-
and-mortar companies and new start-ups ask themselves: To Be Online or Not to Be Online?

Not long time ago, I read a comment of a well-known industry observer, where he stated that
companies that are not selling through Internet by 2007 will probably become extinct. As
dramatic as it might feel, although exaggerated, but there are some truths in it.

Consider this: Although diminishing due to bad economy, average growth of e-commerce is
around 25 % per year. 81% of small businesses that have an online presence during last years
holiday season reached new customers, leading to an increase in sales and profitability according
to a survey conducted by Harris Interactive. Thirty percent of small businesses with a web
presence and fewer than 20 employees now generate more than 25% of their revenue online
claims Gartner research.

Business Name

In Bangladesh there is a huge number of online shopping are increasing day by day. Therefore, I
am trying to match my business name with those craze. That is why I have choosen very
important need of our daily life as product for business and my business name is "Hatbazar-
Grocery.com".

Objectives

As an ecommerce company, our commitment is to provide quality products and services in a

cost-effective manner, best product from best source and on time delivery assurance. Our key
objectives-

Good quality of product

A safe place to shop and easy payment

 Great, friendly service

Delivery from 20 different location of the country

Our store will be contain at least 5,000 items

3 days return policy

Will also include FMCG products body spray, shampoo, perfumes, soap, etc.

Mission

Our most fundamental philosophy is the concern for customer. This strong belief in customer is
the determining factor that motivates our operations in developing our relationship with our
employees and customers.
We believe that our responsibility for customer satisfaction is not focused solely on the sale of a
product, but rather is the total relationship a customer experiences when interacting with our
organization. We believe in honesty and truth in all transactions and in providing products of the
highest quality and at fair prices. We should do everything possible to provide outstanding
service in marketing the products we sell.

Vision

We pave the way into the digital future of marketing and sales for mid-sized enterprises and
internationally operational companies. We combine creativity, experience, and technology in
intelligent digital solutions. Our claim: Digital Success right from the Start.

Business Model

Hatbazar online grocery stores will be a nationwide online marketplace.

 People can take a shop there and can sell by their name and brand.

Hatbazar will take a commission from the seller.

Hatbazar will assure the delivery to the final consumer.

Hatbazar will provide all the customer service facilities, marketing and delivery facilities.

Seller will take the product at Hatbazars warehouse and take a weekly payment.

Hatbazar will have its own product. Hatbazar will source special products from special
area of the country like- mango from Rajshahi etc.

Company Ownership

The Hatbazar StoreSpringfield will be a corporation. Currently it will be owned and operated
by 4 investors.

Webpage

We will design our webpage from a software company.

Website:

www.Hatbazar.com

facebook page:

https://www.facebook.com/Hatbazar-groceryshop

Hours of Operation

Online shopping will be open for 24 hours. Customer service team will work from 9a.m to 10p.m
and order processing activity will be 5 days of week i.e Sunday to Thursday.
Target Market:

The market consists of students, jobholder, younger or older people in urban area. In urban area
there is a lack of time to the jobholders and too traffic on the road. There is also full of
unhygienic products in the market. International baby foods will also be available on our site. We
will assure the delivery at their doorstep. So there will be a large target market.

Market Trends

In our country there is a huge craze for online shopping. We have a large percentage of citizens
who are young and there is full of unhygienic products in the market. From 2012 e-commerce is
a booming industry. Government is also facilitating this sector with vat and tax exemptions.
Hopefully by the end of this year 4G will launch and internet price will also reduce. So there is
scope to achieve success through ranching fresh foods items and FMCG products. Because of
this modern age young and children are engaged themselves in ranching pet.
So this people like jobholder and working women purchase their daily necessary products from
our site and some rare imported good for their ranching family. As a result market trend is in a
increasing trend.

Market Needs

People want to high quality food, and some different and rare products from online shop which
are not available at local market and every location.

So I provide high quality products and some rare products as soon as possible at a reasonable
price. In addition, I provide a within a short time.

I will try to satisfy my employee. Because of their Ill behavior and handling of customer is most
important in business. Therefore, I will provide well training and salary of my employee so that
they can properly serve my customer.

Market Growth

Urban people like Jobholder, student, working

women today spend a lot of money at their daily
grocery products but do not get their desired quality
products and satisfaction of shopping. As well as
the farmer who produces these products who stay
outside of the Dhaka, they do not get the proper price. Citizens of every corner cant enjoy the
special foods of each area. We will deliver these to them which will have great demand.

Products
The store will sell over 5000 private label and national brand products to the community.
Primarily we will start with simple grocery items

Rice
 Flour

Sugar

Dal

Salt

Onion

Oil etc.

Market Segmentation

As our customers are educated and we have said earlier that we will target urban people who has
not enough time to local shop and who wants a clean shopping environment. Students,
Jobholders, working women are the basic customers of our online store. We will also target non-
urban people who do not get exclusive products like imported baby foods near their hand.

MIS and Hatbazar.com

As my website is made by Magento software, so it's easy for me to manage my business.

Magento is an example of MIS. Let's see the how work magento in my business.
Sales report is useful tool to help store administrators analytic their business performance.
Therefore, Magento provides many sales report types for them. In this tutorial, I will provide
basic information about how you can run and manage sales reports in Magento CE (Community
Edition) and EE (Enterprise Edition).

There are sales report types and their description that you should know:

Orders:

Information related to sales ordersincluding the sales, invoice, refund, shipping, and discount
amounts for all orders created or updated. There will be an auto generated order number by
which customer can track his products and all the dealing will be based with this order number.
On an order there will be customer shipping address, product detail and customer information.

Tax:

Tax amounts grouped by tax rates which are applied to sales orders invoiced.

Invoiced:

Number of orders created and invoiced and also invoice-related amounts grouped by tax rates.

Shipping:

Shipping amount information for each shipping method used in the orders invoiced.

Refund:

Refunded sales orders, including those refunded online and offline.

Coupons:

Aggregated coupon orders.

Payment:

Payment can be of cash on delivery (COD) or advanced payment. We will take 50% advance
payment for orders outside Dhaka. We will have also credit card payment at the time of delivery.

Integrated software and Network:

We will use some integrated network among our suppliers and our operational team. Suppliers
will be connected with the internal database with an intranet with us. They can access to stock,
product price and promotional activities. But access will be limited up to a certain point.

HR and Accounts will maintain employee information and records using Tally software. Supplier
payments and receivables will also be maintained with Tally software.

Marketing:

In our country most of the e-commerce companies do digital marketing. We have all the services
to transform ideas, values and vision into professional marketing solutions to communicate and
support your strategic goals.Their marketing activities are like

News Letter

E-mail

SMS

Search Engine Optimization

Google marketing

Social media communication

Google Grants

Public Relations

SEO for nonprofiles

We will also follow this type of marketing channels. We will focus on Facebook and Twiter for
promotion especially. We have plan physical marketing as well. For this we will do some outdoor
promotions. Like-

Brushier

Banner

Leaflets

Newspaper ads

CRM activities

University student activation

Postering etc.

Hatbazar is committed to keeping up with technology changes, thereby gaining a competitive

edge in the marketplace. Computers and other information systems are integrated to provide
management information and time-saving tools.
These include:

E-mail systems

Standard accounting software

Computer-based training

Support is always available to answer system and software development questions, or provide
programming solutions as new industry developments appear.
To support our online store, electronic marketing allows us to access complete data analysis and
marketing services. These services include data storage, strategic planning/consultation, sourcing
for card/key tag manufacturing, custom marketing program development, promotions and
campaigns, electronic marketing training and education, retailer-specific data analysis, and
support of third-party programs.
Promotions & Campaigns

Building store traffic, generating consumer excitement, accelerating sales and profits, and
positioning our store competitively in the market will be relatively simplified by the use of the
Sales Promotions Department at Hatbazars. By combining their purchasing programs with
trendsetting insight, Hatbazar will launch 2 big campaigns each year and a monthly campaign
called Masher Bazar. Hatbazar suppliers will select those promotions that best meet their unique
marketing needs. Backed by TV spots, circulars, P.O.S. materials, sweepstakes and more, this
promotional activity is key to our online success.
We will also promote our store using information gathered from our Mystery Shopper Program.
This program was developed to provide monthly feedback to owners and managers on the status
and condition of the stores. The program focuses on these major areas:

Internal and external store appearance

Product availability

Point-of-purchase materials

Food service

Uniforms

Most importantly, the quality of service received at the register

Opportunity & Threat Analysis:SWOT

Every business has some strong points, weak points, opportunities and threats. So Pet Buddies
also have some SWOT which is following
Strength:

Reasonable price

Providing good service

Maintaining food quality

Serving traditional good

Exclusive items imported from foreign

Customer get different experience because of my unique service

Weakness:

Lack of capital.

Low turnout profit

Lack of experience.

My business is new and not established

Opportunity:

Attract to new generation because they are interests to ranching pet

Increasing demand for healthier medicine, food and accessories

Threat:

Facing new competitor

Product price will be high.

Utility cost will be increase

Pricing strategy

Pricing strategy refers to method companies use to price their products or services. Almost all
companies, large or small, base the price of their products and services on production, labor and
advertising expenses and then add on a certain percentage so they can make a profit. There are
several different pricing strategies, such as penetration pricing, price skimming, discount pricing.

In pricing strategy, I choose penetration. Penetration pricing is the pricing technique of setting a
relatively low initial entry price, usually lower than the intended established price, to attract new
customers. The strategy aims to encourage customers to switch to the new product because of the
lower price.

In the initial stages of entering, the market I use penetration pricing typically sets a low price for
my product in hopes of building market share, which is the percentage of sales a company has in
the market versus total sales. The primary objective of penetration pricing is to garner many
customers with reasonable prices and then use various marketing strategies to retain them.

Financial Requirements

This financial requirement is imaginary. Because I am not starting in a practically. When I am

going to invest practically then the cost is to be more or to be less.

Start- Up Requirement
Start-up Expense
Website 200000
Legal 200000
Product 400000
Decoration 300000
Others 100000
Total Start-up expense 1200000
Start up Asset
Computer, Printer & others 100000
Building(rent) 80000
Others 0
Total Start-up Asset 180000
Total Start-up Requirement 1380000

Planning

Planning
Company Resource Planning Contingency Planning
FINANCIAL Target Market
PEOPLE Target Market
SKILLS Price
Time Competitors
Unit Sales

Company Resource Planning

Hatbazar has the following resources planing:

Financial

My business is sole business. So at first I am contributing 10 lack each as an initial capital as well as I am
communicating with the commercial banks to grant some business loan in order to run over business
activities smoothly.

People

I know that service differs from provider to provider. I consider man power as my important strength. SoI
will take five employee are handling different departments. I have high skilled five employees for
supporting me in my different services.

Skills

Without any suspensions, I can say that skill employees are the asset for any organization. As I have hired
some employees for different services according to the nature of the services. And As I have technological
equipment, skilled employees are more important. I have also trained my employees for providing
services smoothly.

Time

We will run our business time 9 to 6 p.m sunday to thurday.

 Contingency Planning

Pet Buddies has also set down some c12ontingency planning. My goal may not be achievable for
different issues. My plans are-

Target Market

If I will not be able to catch my target market within my strategies, I will implement new strategy next
years. If I will observe a dissatisfactory result after 2nd quarter, I will increase my promotional activity
more. Features of my services will be increased.

Price

If I will not be able to maintain a good amount of sales I will reduce my price after 3 rd quarter.

Competitors

Our main competitor will be the retail stores. As there are few and weak competitors, designed some
strategy based on that. But as entry and exit barriers are low any time many strong competitors may run
business. I will change my strategy at that time. My price will be reduced and different features will be
implemented immediately.

Unit Sales

If dissatisfactory sales will be occurred, I will increase I features and try to redesign my strategy.

Conclusion

Despite being a poor country, selected segments of the Bangladeshi business community has
embraced technology with reasonable success. The Facsimile in the 1980s and mobile
telephones in the 1990s popularized modern technology in the mass market. Personal
computers and the Internet are also emerging as day-to-day business tools. These positive
indicators are favoring the prospects of e-commerce in Bangladesh.
The focus of this paper was on the current state of the regulatory environment in the financial
and technological sectors of Bangladesh. Necessary reforms in order to introduce e-commerce
have also been suggested. Lack of awareness among the policymakers has been identified as
the major deterrent to introducing e-commerce. Conventional understanding of payment
mechanisms raises false alarms against the flight of capital if e-commerce is implemented.
Synergy between telecommunications and information technology has the proven capability of
monitoring and administering the real-time transactions. Therefore, liberalizing the telecom
and IT sectors as well as reforming the countrys financial and commercial procedures is the
preconditions of successfully implementing ecommerce in Bangladesh.