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Mobile Corner Project

Idea:

Online Mobile Phone Selling

Submit to:

Sir Umar Farooq

From:

Muhammad Hannan Hayat 3702

Abdul Muqsit 3734

Aftab Ahmad 3713

Riaz Ahmad 3707

MBA 5th Morning

Department of Business Administration

University of Education Multan

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Table of Contents
Acknowledgement .................................................................................................... 4

Executive Summary ................................................................................................. 5

Introduction of Business .......................................................................................... 7

Mission Statement&Vision Statement ................................................................... 8

Goals &Objectives.................................................................................................... 9

Customer Segmentation&Market Segmentation................................................ 10

Competitor Analysis& Mobile Corner Competitors & Point of Uniqueness .. 11

PEST Analysis ........................................................................................................ 12

SWOT Analysis ...................................................................................................... 14

HR Plan/ Organizational Plan .............................................................................. 16

Marketing Plan....................................................................................................... 19

Marketing Mix........................................................................................................ 20

BTL & TTL &Customer Retention ..................................................................... 22

Assessment of Risk&Contingency Budget (Backup Plan) ................................. 23

Porter’s Five Force Model..................................................................................... 24

Business Canvas Model ......................................................................................... 26

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Financial Plan ........................................................................................................ 27

Cost Estimation ...................................................................................................... 28

Revenue Estimation .............................................................................................. 29

Income statement ................................................................................................... 30

Balance Sheet .......................................................................................................... 31

Estimated Cash Flow ............................................................................................ 32

Budgeting Techniques ........................................................................................... 33

Payback Period ................................................................................................ 33

Net Present Value ............................................................................................ 34

Exit Strategy ........................................................................................................... 34

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ACKNOWLEDEGMENT

Firstly we want to thankful to Almighty ALLAH who make us capable to successfully

accomplish this online earning project.

Then we would like to thank our teacher Umar Farooq who gave us confidence to
increase our skills and he provide us inopportunityto take part in such kind of online
activity that will help us to achieve future goals and made us professional in our online
earning field.
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Executive Summary

There is a potential need for the development of online mobile business in Multan.
Currently, there is no such type of business located in this area which is operating in
Brick & Mortar and Online business. We analyze from questionnaire people having lack
of trust in online buying cell phones because sometimes they face danger when they went
to purchase cell phone so we provide safe zone and we provide them best quality cell
phones so we can gain their trust.

In this Business we provide a facility that people can easily get access towards cell phone
with the help of with our website as well as physical shops.

Our idea is targeting on serving the customers by providing new cell phones and we also
offer used cell phones which present in shops and they having lot of benefits for
customer, such as its superior quality, affordable price and extra after sale service. Online
Mobile Corner having all brands’ cell phones.

This project is less costly because costs involved are mainly of the Website and Facebook
Page etc. to be developed. The initial investment of this project is invested by group
members. And our Stakeholderis owners of mobile shops operating different locations of
Multan who provide use cell phones.
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Location:

MULTAN

Company Name:

Mobile Corner

Website:

www.mobilecorner.pk

Slogan:

“Mobile Corner saves Your Time”

Logo:
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Introduction of Business

In this Business we provide a platform where customers can easily choose the best cell
phone according to their need in minimum time with minimum efforts, Mobile corner
bringing more comfort in life of the citizens in Multan City. Our basic purpose is to
provide quality cell phones which will satisfy customers. To run our business we will
purchase a domain for website where we can place all information about cell phones and
we will create a page which will be sponsored by Facebook.

We are having contracts with different mobiles shops located in different locations of
Multan; they will give us information on our website about those cell phones which they
have in their shops. Firstly we give them open access toward our website and they can
join our website by making their account. So they can easily post their information about
used cell phones. Customer can buy these cell phones with our guarantee. We make our
office near atlas Honda chowk sadu hasam Multan and we pay rent of that office. We
post information about new cell phones with their reasonable price so customers can
easily get all information about available used as well as new cell phones in market.
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Mission

Business mission is to provide stylish, great, affordable cell phones. We promise to offer
our customer to enjoy unique services of us. Our target is to provide a variety of positive
recreational experiences to enhance online shopping experience in terms of Mobiles.

Vision Statement

To become the People’s 1st Priority at Pakistan Level as well as International level. And make good, long
relationship by providing them trustful products and behavior.
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Goals &Objectives

 To become market leader in this arena.

 Provide best quality experience.
 To make something different from others and will comes up with competitive
advantages.
 To improve our services by obtaining Feedback.

Offering Inventory

We are offering Real Time Inventory, it means when we receive order of new cell phone
from customer then we will purchase from one of our market partner and will deliver it to
the customer or when customer want use cell phone then they contact with shopkeepers
with the help of their information which is available on our site.

Daily Visits

According to our research almost 800-1000 people will visit our website and Facebook
page daily.
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Customer Segmentation

Now a days, mobile phone is essential part of everyone if you have a cell phone then you
are never alone. We segmented customers in following segments.

 12-20 Years. (20%)

 21-35 Years. (50%)
 36 and above. (30%)

Market Segmentation

Geographic:

Country region: Multan

Demographic:

Age: 12 and above

Gender: Everyone

Occupation: Professional, students, unemployed, businessmen

Education: Not required

Psychographic:

Social class, Middle Class, lower Class

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Competitor Analysis

In this, we analyze that some of competitors exist in market which are dealing in that
online mobile business, some of them are international competitors and some are local
competitors.

Mobile Corner Competitors

 OLX
 Daraz.pk
 Kaymu
 Mobile Mall
 Gadgets online
 E Mobile

Point of Uniqueness
Our business is safe because all information about used cell phone provide by registered
shops. Our business is unique because our customer can look all information about used
and new cell which is present in different markets in Multan. As we not store inventory
we just deal in real time inventory so our business is less costly. We also provide free
home delivery of new cell phones within the range of 10 KM from Ghanta Ghar Multan.
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Customer can get 1-2% discount from our stakeholders if they purchase mobile through
our site.

We are also providing after sale service such as return of used cell phones within 1 week
of purchase if they found any fault.

PEST Analysis

Political:

In accordance with the current scenario in Pakistan govt. changes very rapidly but it does
not influence our business.

Economical:

Economic conditions can be in our favor and against us. If Inflation is prevailing in
Country then the people’s purchasing power will reduce and our sales may decline and if
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inflation decrease then the purchasing power of customers will increase and our sales will
also increase.

Social:

By giving social benefits our brand image may increase. Like if we organize some social
events then people getting positive image of our Business.

Technological:

Technology having major effects on our business if we use latest type of technology then
we get edge on our competitor and people easily access our deals.
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SWOT Analysis

Strength

 Huge Income from Online sector.

 Operators have complete knowledge in online dealings.
 No Need to get Loan from banks.
 Trend of Online Shopping.
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Weakness

 High competition
 Credibility factor in the initial phase,
 Lack of strategic management system
 Peoples having no recent information about our website.

Opportunities:

 Demand about mobile items is increasing day by day

 No Direct Competitor in dealing in online as well as with shops.
 People are fed up to go to shops and bargaining, mobile corner can give them
uniqueness.
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Threats:

 Less Purchasing power of customer when economic crises arises in Pakistan.

 Now mostly people are also trying to starting online mobile ventures.
 If any other shops with website are starting their business in same market then our
sale will be less.

HR Plan/ Organizational Plan

Hierarchy

CEO

Fiance Manager Marketing

IT Manager
Manger
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Hannan Hayat (CEO)

CEO look all the activities in whole departments. He having the power to check the work
and quality in term of service of their employees. He is also providing new ideas for the
betterment of business.

Riaz Gujjar (Finance Manager)

This manager look all types of financial activities such as acquiring capital from different
partners and keep an eye on where to invest and he look all the potential ways of earning.
It is also duty of finance manager to do evaluate the projects by using different
techniques such as: Payback Period, NPV etc.

Abdul Muqsit (Marketing Manager)

Marketing Manageris responsible for online advertisement as well as Facebook promotions

and real market efforts of ventureand. He madeDifferent questionnaire for getting
feedback from customers, and make changes in marketing efforts by getting the response
of customers in questionnaire.

Aftab Ahmad(IT Manager)

IT manager is responsible for the development of site and he will also develop Mobile
Corner App. He will also make Facebook Page and boost it from Facebook.
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HR Plan

We hired a delivery boy who is having experience about this field and having driving
license we conduct an interview and select right person for this job. Infuture we will
develop different strategies for hiring of new employees
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Marketing Plan

Customer Analysis:Our mostly customers are youngsters because they mostly

purchase new mobiles as well as used mobiles and they also regularly change cell phones
so it is our profitable customers.

Selling Products and Services:We provide all types of cell phones according to
customer demand, if they want new cell phones then we provide them new cell phones
from our stakeholders or if they want used cell phones then our stakeholder contact with
him or he will go to stakeholder shop and buy his demand cell phone.

Pricing: We set the price of new cell phones by less than our competitor.

Marketing Research:We collect data and analyze the data to solve the online market
problems and for the purpose of our business development.

Social Responsibility:When we set the price of new cell phones then it must be less
than others competitor so everyone easily accept it. When our social responsibility is high
then it is beneficial for our business.
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Marketing Mix

Product:

 Samsung
 Nokia
 I phone
 Lenovo
 Huawei
 Panasonic
 Q Mobile
 Oppo
 Sony
 LG

Price:

 Samsung galaxy S6: 54,000

 Samsung A7: 47,300
 Samsung J7: 29,100
 Samsung grand 2: 32,000
 Oppo mirror 5: 25,000
 Oppo Find7: 55,000
 Oppo N1: 39,500
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 Qmobile E8: 27,100

 Qmobile Z12: 20,000
 QmobileA6: 16,000
 Huawei Mate9: 69,000
 Huawei P9 plus: 67,300
 Huawei Honor8: 48,200
 Apple 5s 64gb: 71,500
 Apple 6s plus: 69,200
 Etc.

Place:

We chose Multan place for this Business. And we make our Office near atlas Honda
chowk sadu Hasam Multan.
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Promotion:

Firstly we make Facebook page for promotion then we print some Broacherand deliver
into different places. And for promotion purpose we sponsor university function and give
caps to students.

BTL:

BTL mean below the line marketing. In our business we use this technique for marketing
purpose. We use direct marketing such as meet the peoples and give them Brochure.

TTL:

TTL refers to through the line marketing. Our major focus on that type of marketing. We make Facebook
page and boost it so our target peoples can easily know about our business and get easily information
from our website. And we sponsor some festival in university or college and at the end we give caps to
students on the top of cap our website logon is printed.

Customer Retention:

We retain our customer by giving extra services to him. Some time we give special offers
to our regular customers for loyalty. We also take feedback about their experience of
purchasing from our website. If they face some problem then we solve it fast for retain
the customer.
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AssessmentofRisk:

In term of marketing risk some time our business effected and the reasons are some
competitor use latest technology for promoting business and we not use that then it will
be risk factor for us.We must use latest technology for solve that problem.

When our one or more partner left this business then financial risk arises. Because he take
his money back and we having less capital for run the entire business. And when this
manager left our business then it will be a biggest loss for us because he having all the
knowledge to run the online business. So in that case we must arrange new IT manager to
solve that problem.

Contingency Budget (Backup Plan)

In case of loss or low profits, we have some backup plans, for example; we will creates
awareness in potential customers by sending them promotional messages through
software or by doing any social activity which will create customer’s interest. We can
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also provide some special offers to customers as a backup plan like giving them limited
time offer or some extra discount offer on specific mobile phones.

Porter’s Five Force Model:

Rivalry among Competitor:

There are many competitors present in that type of field. But our unique point is we deal
with shops so it is trust factor for our business. We provide extra services to our customer
then our competitor and provide him discount and compete with competitor. Firstly we
make good relationship with customers and make them loyal and then we retain them.

Threat of substitute:

We look the strategy of our substitute and try to increase our potential efforts against our
substitute. If they try to compete us then we increase the publicity so customer attract
towards us.

Threat of New Entrance:

Whenever we feel that the entrant is coming to market then we’ll try to create hurdles for
them by making bringloyalty and brand preference. Because we satisfy our customers so
they can not attract these customers towards them.

Bargaining Power of Suppliers:

Bargaining power of supplier does not affect us because we have large number of
suppliers so if one supplier do not co-operate with us then we’ll go to other suppliers.
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Bargaining Power of Buyer:

When bargaining power of customer is high then we give them extra services or
discounts more than other competitors to make them loyal to us. BY doing so, they will
not switch to our competitor and will become our loyal customer.
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Business Canvas Model

Key Partners: Activities: We Value Customer Customer

Our key are providing a Proposition: Relationship: we Segments:Now

partners are platform to our MostlyPeople develop positive almost everyone

face problem relation with our using internet.
Hannan, customers such
for searching customer by giving Butyoungsters
Muqsit, Aftab, as website and
old cell phone extraservices. We act spend more time
Riaz and an App so that
in market and as a good business on internet and
current they can easily
if they select operator so everyone having all
business access to online phone then knowledge about
want to choose cell
partners are mobile market. they face phone from our online
those who bargaining website. purchasing.
having shops in about price. They are our
Resources: So we provide Channels: Customer potential
Mall Plaza and
Weprovide platform so can easily find our customer
Rehma Plaza
information customer see website on Google because they
and with the
about old and all info about or through frequently
passage of time
new cell phone. used cell change cell
our partners Facebookpage. They
We are phone and its phone and buy
will be can buy new cell
operating a place of latest model of
increased. phone by giving us
presence. cell phones.
website, online order. We
Facebook page deliver this cell
and an App. phone with
minimum cost
Cost Structure:This project is less costly because we just Revenue Model:We can earn maximum profit from
dealing with real time inventory. We just bare office cost, this business. Firstly revenue comes from direct sale
website cost and Facebook page cost. Our business partner of new mobiles. Then we can earn revenue from our
investsthe entire amount so no need bank loan for that stake holders because they can post ad on our website
purpose. Total fixed cost of that project is 159,200 and we charge him for ad posting. And last source of
total invested amount is 400,0000. Every month we face income is Absence. We place different ads on our
some operational cost with the passage of time we try website then we generate traffic so Google pay us
reducing this operating cost. against that traffic when trafficincrease then our
income will increase
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Financial Plan

Total investment

4,00,000

Name Capital Invested

Hannan Hayat 100,000
Abdul Muqsit 100,000
Aftab Ahmad 100,000
Riaz Gujjar 100,000
Total 4,00,000
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Cost Estimation

Fixed Cost Estimation

Particulars Company Quantity Cost

Laptop Dell 1 30,000
Table 1 4,000
Chair Boss 4 8,000
Air Cooler Sogo 1 10,000
Fan&Fitting PakFan 1 8,000
Water Cooler 1 2,000
Glass 6 500
Brush 1 150
Ash Tray 1 150
Dust Bin 1 200
Led Bulb&Fitting Sogo 4 1500
Insect Killer 1 500
Charging Light Dp 2 600
Wall Clock Casio 1 2000
Rechargeable Fan Dp 1 3000
Sofa Set 1 12,000
Interior Expense 27000
Heater 1 3000
Door Mat 1 300
Internet Connection Zong 2,000
Bike Dhoom 1 50,000
Domain 20Gb 1 1700
Hosting 1000
Facebook Group 1 10,000
Carpet 1 5000

Advance of Office Near Atlas 100000

Honda
Total 282,600
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Operating Cost Estimation

Expenses Amount
Internet Bill 1500*12 18000
Utility Bill 5000*12 60000
Petrol 6000*12 36,000
Wages 15000*12 180,000
Depreciation (Furniture & Fittings) 6000
500*12
Promotional Expense 60,000
(Caps&Brochures) caps= 4000*12
&broachers 1000*12
Advertising (Facebook Boost) 144,000
12000*12
Misc. Expense 4000*12 48000
Rent Expense 10000*12 120000

Total 666000

Revenue Estimation

Particulars Revenue

Sale 200000*12 2400000

Income From Shops 60,000*12 600,000

AdSense 20,000*12 240,000

Total 3,240,000
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Income statement OF Mobile Corner

Particulars Amount
Sales 2400000
Less: Cost of Goods Sold 2220000
Gross Profit 180,000
Add: Income from shops 600,000
AdSense 240,000
Operating Profit 1,020,000
Less: Expenses
Internet Bill 18,000
Utility Bill 60,000
Petrol 36,000
Wages 180,000
Depreciation (Furniture & Fittings) 6000
Promotional Expense 60,000
Advertising 144,000
Misc. Expense 48,000
Rent Expense 120,000

Net Profit 354,000

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Projected Balance Sheet

Assets Amount Liabilities & O.E Amount

Laptop 30,000 Capital 400,000
Net Table Amount 3,500 Add:Net Profit 354,000
Chair 7,000
Air Cooler 10,000
Fan&Fitting 8,000
Water Cooler 2,000
Glass 500
Brush 150
Ash Tray 150
Dust Bin 200
Led Bulb&Fitting 1500
Insect Killer 500
Charging Light 600
Wall Clock 2000
Rechargeable Fan 3000
Net Sofa Set Amount 10,500
Net Interior Expense 24000
Heater 3000
Door Mat 300
Internet Connection 2,000
Bike 50,000
Cash 117400
Domain 20Gb 1700
Good Will 20,000
Hosting 1000
Facebook Group 10,000
Carpet 5000
Advance of Office 100,000
Account Receivable 340,000
Total 754,000 Total 754,000
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Estimated Cash Flow

Particulars Amount
Operating profit 1,220,000
Less:Expenses 670,000
Net Profit 550,000
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Budgeting Techniques

Payback Period

Estimated Payback period is 2 Years.

Years Cash Flow Accumulated Cash Flow

1 354,000 354,000

2 550,000 904000

Initial Investment=400,000

1+ 46000/550,000= 0.083

Payback Period= 1.08 Years

Decision is to accept the project

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Net Present Value:

Cost of Capital= 10%

=354000/ (1.10^1) + 550000/ (1.10^2)

= 321818 + 454545

NPV= 776363

Acceptance Criteria

NPV - Initial Investment

= 776363 - 400,000

= 376363

Project is accepted.

Exit Strategy

In case of our backup plan also fails then we can easily shutdown our business and sale out our
all assets and distribute all money between our partners according to their Capital invested.