Group Members

Ritwik Sharma(90) Karan Sharma(87) Rahul Sheth(91) Prabhakar Yadav (118) Rohit Pawar(66) DeepakVasu(113)

12/16/2013

It is not easy to compete with kirana stores: Rajiv Lal (Senior Professor of Retailing at Harvard Business School )

12/16/2013

Product
Sugar Wheat Dal Rice Kerosene

In Kilogram
100 30 30 50 4000 liters

Sack
4 10 4 20

Amount
Rs 40/Rs 26-32/Rs 75-80/Rs 36-56/Rs 15-20/-

12/16/2013

PRODUCT
Beverage

AMOUNT(IN RS)
10-70/-

PRODUCT
Health and care product.

AMOUNT(IN RS)
10-115/-

Stationeries Cigarette

2-35/6-120/-

Chocolates.

01-120/-

12/16/2013

License required:- Gumasta(shop and establishment) - Food and health license Area- 400 sq,ft/- Jogeshwari (East) 300 sq ft/- Storage room Why This Place Average sale- Rs 20000/- to Rs 25000/ Rs 25000/- to Rs 30000/ Profit margin- 10-15%. Customers-100-150 per day. Rent-25000/- per month.

12/16/2013 5

Labor- 2*250/- per day Labor Source: Local citizen Capital requirement: Competition: High Competition manage: 1) home delivery 2) Free 1Kg Sugar 3) Credit Facility Seasonality effect: Minor Transportation and storage : Inventory management: Ease of entry:

12/16/2013 6

Study the market. Develop a business plan. Obtain a loan. Document your general store business structure. Apply for a business license. Lease a strategically located storefront. Visit other regional general stores in your city, town or region. Order your general store's wholesale merchandise. Hire friendly store employees.

12/16/2013

By selling narrow product

Penny candy to Large consumable product

12/16/2013

Our Strategy in opening a General Store

12/16/2013 9

Where two streets meet. Strategically located to take advantage of the traffic . Centre of the neighbourhood. Location costs. Competition and neighbours.

12/16/2013

10

Place Jogeshwari East(poonam nagar) Ownership- On Rent Area 800 Sq Ft /200 Sq Ft /- Ware house Rent Rs 35000/ Reason- Newly Developed Residential

12/16/2013

11

beverage
ENTRY &EXIT

Ice Cream
12/16/2013 12

Selling loose items under Lakshmi store brand. Staple food. Dairy product. Beverages. Health and care product. Stationeries. Chocolates. Snacks. Dry fruits Pickles and Spices.......ETC.

12/16/2013 13

Investment- Rs 30,00,000 Patners- Six Patners =Rs 20,00,000 + Investors = Rs 10,00,000 Or Bank= Rs 10,00,000 @ 13.5% Calculation: Loan for a year Interest -Rs 135000/

12/16/2013

14

Store- on Rent Shop Design- Full Furnished (Rs 3,50,000) Wooden =125 per cubic glass= 750 sq.ft loose tool= Rs 50000/A.C= Rs 40000/- 1.5ton (OGenRal) Area- 800 sq,ft/- + 200 sq.ft warehouse Per day income- Expected Rs 30000/

12/16/2013

15

12/16/2013

16

TAN (Tax Collection & Deduction Account Number)-(Rs.999) VAT/ CST Registration(Rs.7,499) Shops & Establishment License or Gumasta license ( Rs.3,999) PAN card (Rs 499)

12/16/2013

17

12/16/2013

18

Supplier Capacity and Reliability. Credit terms. Proximity and Distance. Competitive Pricing. Exchange Default product. After Sales Support. Up to date Product Range. Lower waiting times - systems efficiency.

12/16/2013

19

Agencies HUL (3) Chocolates Personal Care Home Care Food & Drink

12/16/2013

20

Quality Fair price Credit Facility Free home delivery Update product (no expiry product) Free gift on bill amount starting from Rs 500/

12/16/2013

21

12/16/2013

22

12/16/2013

23

Strengths
Bargain Easy Access Quick Delivery Quality Food Grains

Weakness
Private Labels Pricing Economy of scale

Opportunities
Expand as an organized supermarkets 25 stores in Delhi under the banner of Provision Mart are joining hands to combine monthly buying BombayBazar & EfoodMart

Threats
Super markets & Hyper markets with 2-5 Kms of Radius Foreign player like Walmart whose operations are too strong

 Target

Customer Revenue expectation Profit margin

Financial
6 4 2

0
Category Category Category Category 1 Series 1 2 Series 2 3 Series 3 4

12/16/2013

25


1) 2) 3) 4) 5) 6) 7)

Turnover (Sales) Expense

Employees salaries Furniture & fixtures Rent Electricity Transportation vehicle Online portal & e-billing Other miscellaneous exps

1,10,00,000 Rs

approx

Profit margin (13%)

Break even point

15,00,000 Rs

2 years
12/16/2013 26

Normal Store 1. Mess 2. Lazy labor 3. No proper home delivery 4. Less managed 5. Out of stock

Lakshmi Store 1. Organized 2. Active labor 3. On time delivery 4. Well managed 5. Inventory well manage

12/16/2013

27

12/16/2013

28