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A project Report on
Retail Business Plan
On Yogeswar General Store
Developed By:
Ritesh J.Parmar.
Submitted To:
Mrs.Nisha Kurup.
(PBS Trainer)
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ACKNOWLEDGEMENT
Every piece of hard work requires the combined efforts and talents of
many people. An Ambitious work of this kind, providing analytical review
to the subject would have remained a concept rather than the finished
product without co-operation of those who respondent to our request to
contribute.
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PREFACE
A man without practical knowledge is just like a rough diamond. To
shine like a real diamond one must have practical exposure of what he has
learnt. For the management students, theoretical knowledge is just like lock
without key, so practical knowledge is of utmost importance.
It is quite true that world outside: your cosy home is many times
quite different from what you have perceived. Similarly it is possible that
theoretical knowledge acquired in the classroom may differ from the
practical knowledge
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Index
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Executive Summary:
India is the only one country having the highest shop density in the
world, with 11 outlets per 1000 people (12 million retail shops for about
209 million households). Rather we can see the democratic scenario in
Indian Retail (because of low level of centralization, low capital input and
due to a good number of self organized retail). Indian retail is dominated by
a large number of small retailers consisting of the local Kirana shops,
owner-manned general stores, chemists, footwear shops, apparel shops,
paan and beedi shops, hand-cart hawkers, pavement vendors, etc. which
together make up the so-called “unorganized retail” or traditional retail.
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The last 3-4 years have witnessed the entry of a number of
organized retailers opening stores in various modern formats in metros
and other important cities. Still, the overall share of organized retailing in
total retail business.
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Objectives:
“Yogeswar General Store” is a neighbourhood Kirana store, which is
located near C.J.M School in Petlad, this area is known as the centre of city,
which is convenient for all the people.
Mission:
The most fundamental philosophy of The Yogeswar General Store is
the concern for people. The Stores primary objective is to create a new and
revolutionary distribution outlet that will significantly reduce prices for its
customers and provide greater services with an equal level of quality. The
Store seeks to be first to market with this daring new idea so as to capture
market share and create greater than average profits. Stores philosophy of
concern for people gives our General Store the drive to be a good corporate
citizen. Store believe that they have a responsibility to be a good neighbour
in maintaining their property in first-class condition and by making the
appearance of their plant, facilities, equipment, and grounds as attractive as
possible, making them an asset to the communities that support their store.
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Company Analysis:
Company Summary:
Yogeshwar General Store is a premier regional grocery retailer
based in Petlad City. It is doing business more than 15 years and
Yogeshwar General Store do sales more than 130 private label and national
brand products to more than 90 independently owned products.
Company History:
In 1995 Arvind bhai was build-up or forming a small store named
Yogeshwar General Store .It is a neighbourhood store and in 2001 he was
expanded his business & make big store. The store has is at convenient
place. The store has more than 80 national and domestic brands. The sales
revenue at the store is 2, 00,000 from last three years
After getting this much of sales revenue now the owner is thinking to
take the franchise of multinational brands .Owner is thinking to take
franchise of Proctor &Gamble, Johnson& Johnson, etc.
Company Ownership:
The Yogeswar General Store is a Sole Proprietorship. Currently it
will be owned and operated by Mr.Arvind Prajapati & His Father.
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Location:
The store has located at the ideal store location for the operation.
The store is located at the C.J.M School, Mariampura, and Petlad. The store
is only selling the grocery products. The Store is fulfilled all the customer
need and at Prime location & Ample parking.
Hours of Operation:
Store hours will be 7 days a week from 08:00 A.M. until 09:00 P.M.
Checks &all the credit cards will be accepted. A food stamp policy along
with other policies will be in place.
Start-up Summary:
Start-up costs will be financed through a combination of owner
investment, short-term loans, and long-term borrowing. The start-up chart
shows the distribution of financing.
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Mathia flour, Dhokla flour, Kodri flour, Amchur powder, Black pepper
powder, Black salt powder, Cardamom powder, Chilly crushed, Chilly
powder gondal, Chilly powder kashmiri, Chilly powder reshampatti, Chilly
white powder, Cinnamon powder, Cloves powder, Coriander powder,
Coriander-cumin powder.
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Industry Analysis
Indian Retail: An Overview
Emerging markets such as India and China
are the final frontier for retail taking the focus
away from saturated Western markets. Since
2001, 49 global retailers entered 90 new markets,
but at the same time, 17 retailers left markets in
2005.
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Retailing in India is gradually inching its way to becoming the next
boom industry. The whole concept of shopping has altered in terms of
format and consumer buying behaviour, ushering in a revolution in
shopping. Modern retail has entered India as seen in sprawling shopping
centres, multi-storeyed malls and huge complexes offer shopping,
entertainment and food all under one roof.
Initially, this was about Indian corporate houses rolling out malls and
supermarkets, but with Wal-Mart coming into the Indian market, the era of
the superstore is dawning. Unlike the Kirana stores that served us for
decades, this new breed of retail chains is heavily dependent on IT.
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Industry analysis of the Indian retail sector:
Modern retailing has entered India in form of sprawling malls and
huge complexes offering shopping, entertainment, leisure to the consumer
as the retailers experiment with a variety of formats, from discount stores
to supermarkets to hypermarkets to specialty chains. However, Kirana still
continue to score over modern formats primarily due to the convenience
factor.
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huge savings for the farmers as well as for the nation. The government also
stands to gain through more efficient collection of tax revenues. Along with
the modern retail formats, the non-store retailing channels are also
witnessing action with HLL initiating Sangam Direct, a direct to home
service. Network marketing has been growing quite fast and has a few large
players today. Gas stations are seeing action in the form of convenience
stores, ATMs, food courts and pharmacies appearing in many outlets.
In the coming years it can be said that the hypermarket route will
emerge as the most preferred format for international retailers stepping
into the country. At present, there are 50 hypermarkets operated by four to
five large retailers spread across 67 cities catering to a population of half-a-
million or more. Estimates indicate that this sector will have the potential
to absorb many more hypermarkets in the next four to five years
Traditionally, the small store (Kirana) retailing has been one of the
easiest ways to generate self-employment, as it requires minimum
investments in terms of land, labour and capital. These stores are not
affected by the modern retailing as it is still considered very convenient to
shop. In order to keep pace with the modern formats, Kirana have now
started providing more value-added services like stocking ready to cook
vegetables and other fresh produce. They also provide services like credit,
phone service, home delivery etc.
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The organized retailing has helped in promoting several niche
categories such as packaged fruit juices, hair creams, fabric bleaches,
shower gels, depilatory products and convenience and health foods, which
are generally not found in the local Kirana stores. Looking at the vast
opportunity in this sector, big players like Reliance and K Rahejas has
announced its plans to become the country's largest modern retainers by
establishing a chain of stores across all major cities.
Apart from metro cities, several small towns like Nagpur, Nasik,
Ahmedabad, Aurangabad, Sholapur, Kolhapur and Amravati as witnessing
the expansion of modern retails. Small towns in Maharashtra are emerging
as retail hubs for large chain stores like Pantaloon Retail because many
small cities like Nagpur have a student population, lower real estate costs,
fewer power cuts and lower levels of attrition. However, retailers need to
adjust their product mix for smaller cities, as they tend to be more
conservative than the metros.
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Challenges faced by this sector:
The industry is facing a severe shortage of talented professionals,
especially at the middle-management level.
Most Indian retail players are under serious pressure to make their
supply chains more efficient in order to deliver the levels of quality and
service that consumers are demanding. Long intermediation chains would
increase the costs by 15%.
The available talent pool does not back retail sector as the sector has
only recently emerged from its nascent phase. Further, retailing is yet to
become a preferred career option for most of India's educated class that
has chosen sectors like IT, BPO and financial services.
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The retail sector does not have 'industry' status yet making it difficult
for retailers to raise finance from banks to fund their expansion plans.
Government restrictions on the FDI are leading to an absence of foreign
players resulting into limited exposure to best practices.
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While many like Wal-Mart, JCPenney, and GAP have been procuring
from India for a long time, those in the food business and apparel industry
have also tried to work their way around by setting up franchises and
license agreements with local players respectively. For retailers like Wal-
Mart setting up a wholesale outlet like Sam's Club is certainly the way out.
Segment analysis:
The structure of Indian retail is developing rapidly with shopping
malls becoming increasingly common in the large cities and development
plans being projected at 150 new shopping malls by 2008. However, the
traditional formats like hawkers, grocers and tobacconist shops continue to
co-exist with the modern formats of retailing. Modern retailing has helped
the companies to increase the consumption of their products for example:
Indian consumers would normally consume the rice sold at the nearby
Kirana
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Analysis of Customers
In the past few years the whole concept of shopping has been altered
in terms of format and consumer buying behaviour. With the increasing
urbanization, the Indian consumer is emerging as more trend-conscious.
There has also been a shift from price considerations to designs and quality
as there is a greater focus on looking and feeling good (apparel as well as
fitness). At the same time, the Indian consumer is not beguiled by retail
products which are high on price but commensurately low on value or
functionality. However, it can be said that the Indian consumer is a
paradox, where the discount shopper loyalty takes a backseat over price
discounts.
Yogeswar General Store is proving all the products for all the people.
They are not departing any segment .They have all the types of products for
all the customers. All the products satisfy needs & wants of the customers.
They personally take care of them. And they are also providing some
suggestion about the products to the customers. Today customers’ want
hundred percent returns of their hard earn money.yogeswar General Store
is give best return to their money.
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The roles of the government and consumer groups are all widely linked and
aim to inform the public consumer about the safety of products.
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“All marketing decisions are based on assumptions and
knowledge of consumer behaviour," (Hawkins and Mothersbaugh,
2007).
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Analysis of competition
Today we are living in the twentieth century, & this the age of
competition. Today we find competition in each & every place. The
business who wants to survive in this competition, it has to provide best
services & give best solution of the customers’ problems. Today in every
sector nobody has Monopoly.
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Today, Retail sector has a lots of opportunities & lots of ways of
growing. But with these opportunities Retail sector also have tough
competition .To remain into the market ,marketers has to understand many
things .And in this competitive era Marketers have only few choices .If they
want to stay in the market .They have to understand customers needs,
wants & demand & providing solution or services for them. If they are fail
to do that they have to leave the market.
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These are the questions for the store owner for making good internal
environment of store & for to remain in the competition.
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These are the questions for the store owner for making good External
environment of store & for to remain in the competition. As a market
orientated organisation, the store must know these things.
There are so many directly & indirectly competitors are in the retail
business, for the Yogeswar General Store There so many small & big
competitors. The competitors of The Yogeswar General Store are as follow:
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SWOT Analysis
Strengths:
Demographic favour.
Shopping convenience.
They may have good existing relations with the people residing
around the area of their store.
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Weaknesses:
Opportunities:
Potential for investment.
Locational Advantage.
Sectors with high growth potential.
Fastest growing format.
Rural retail.
Threats:
A new competitor in your home market.
Price wars with competitors.
A competitor has a new, innovative product or service.
Inflation.
Poor inventory turns and stock availability Measures.
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Strategy
Strategy is a very important part of the business plan. Building a new
store or undergoing expansion can be a tremendous challenge for retailer.
Strategy helps the Businessman in growth & development of their business.
The strategy of Yogeswar General Store exploits their advantages over the
competition (location, convenience, and high quality) with carefully-
tracked milestones for growth. In the start-up phase it is a central task of
the marketing concept to establish a name Recognition and own trade
mark. Later on the strategy will primarily be targeted to gain new
Customers and create customer loyalty of repeat customers.
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Marketing Plan:
Competitive Edge:
Yogeswar General Stores’ competitive edge will be the lower prices
they will charge their customers and the novel purchasing experience that
will draw shoppers. In the convenience store industry, low cost and
availability are the two success criteria. They plan to create these
advantages in a new, high-tech environment that will retain customers.
Marketing Strategy:
The most critical element of The Yogeswar General Stores success
will be its marketing and advertising. Convenience stores serve the entire
purchasing population of its geographical area but focuses on customers
who need to purchase items outside of normal working hours such as
swing shift employees and quick shoppers looking for snacks and related
items.
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In order to capture attention and sales Yogeswar General Store will
use prominent signs at the store locations, billboards, media bites on local
news, and T.V advertisements to capture customers. Many of the initial
customers will be drawn to the unique nature of the store and will then
have the opportunity to realize the cost savings of Yogeswar General Store.
Since automated shopping is still in its infancy, the firm expects to invest a
great deal of its available cash and revenues in marketing efforts.
Sales Strategy:
The Yogeswar General Store will be a stand-alone, with good facility;
they have an attractive storefront with their low prices and easy-to-use
system. They believe that this in itself is its own seller. One critical
procedure to ensure top customer service and reliability will be
establishing a method for keeping enough inventories of all their products.
They will be using industry data on inventory for other convenience store
chains to assist people.
Sales Forecast:
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Sales Forecast of Yogeswar General
Store
Sales Year -1 Year-2
Drinks 18,00,000 22,00,000
Snacks 12,00,000 15,00,000
General Grocery Items 10,00,000 12,00,000
Others 8,00,000 11,00,000
Total Sales 48,00,000 60,00,000
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The Yogeswar General Stores current position is very good, with the
sales turnover of Rs.2, 00,000 per month but with the expansion of the
store, they want to achieve sales turnover of Rs.4, 00,000 per month.
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Operation /Design & Development plan:
The Yogeswar General Store is turn into the Big General Store from
the Small Kirana shop. So all the operation will change & the development
plan is also changed, these are the following functions required to run the
business.
The Yogeshwar General Stores current position is very good & they
have some milestones in their mind. They worked hard to achieve their
milestones. The stores current sales turnover is Rs.2, 00,000per month.
And they want to take that turn over to Rs.4, 00,000per month in the next
financial year.
The owner of the store personally taking care of the quality of the
products &services provide by the store. If they will maintain their quality
of the products &services, they will definitely achieve their milestones. The
development of the store rely on the quality of the services provided by the
Store.
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Personal plan:
The Yogeswar General ' store will operate virtually 12 hours a day 7
days a week. Although the store’s opening hours will be officially 08:00 a.m.
to 09:00 p.m. Assumptions regarding personnel have been made for year 1
& year 2 as follows:
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Staffing Plan:
When it was a small Kirana Store there were only two persons to
handle the customers, but in this general store the store owner hiring five
people of staff. Yogeswar General Store is hiring three sales persons those
are completed their graduation & having knowledge of computer. One
Accountant from background of commerce completed his master degree &
having knowledge of computer. One Store Cleaner for Maintaining the
Cleanliness of the store.
The sales persons only have to handle the customers and help them to
choose their products. They don’t have to interfere in other department
&operations. An Accountant has only work of maintaining the accounts &
inventories of the store. These are the key result areas of the staff.
There is only one investor &Owner of the Yogeswar General Store that is
Mr.Arvind Prajapati. There is no any professional advisor for the store. All
the hiring, staffing, selection & decision making done by the owner itself of
the Yogeswar General Store.
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Job Profile & Educational Background of Employees of the
Yogeswar General Store
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ORGANIZATION CHART OF “YOGESWAR
GENERAL STORE”
YOGESH WAR GENERAL STORE
STORE OWNER
ACCOUNTANT
STORE CLEANER
/DELIVERY BOY
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Financial Plan:
Financial Planning is a roadmap to realise and achieve financial
goals in life. The process of financial planning involves identifying the
financial goals in life, based on the person’s financial position and risk
profile charting out a feasible plan to a achieve those goals. Financial
Planning includes identifying goals, making the plan, allocating resources
and regular review.
As their Sales Forecast made clear, profits will initially be low. They
expect to sustain small losses in the few months for the first year, until
their newly clientele is fully established. The sales increase more. They
have planned for this seasonal variance, and the funding .They are
requesting will help to maintain a positive cash balance throughout the
first two years, until they become fully profitable.
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and deposit advice. It is these kinds of thorough information and accurate
recordkeeping that allow The Yogeswar general store to make sound
business decisions for the future.
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The financial planning is a last & final stage of the business planning
of Yogeswar General Store. The financial planning will include.
Capital Investment.
Break Even Analysis.
Profit & Loss Statement.
Balance Sheet.
Capital Investment:
The Start up funding of Yogeswar General Store was of Rs. 45, 00,000
in which they have invested Rs. 20, 00,000 for the stock & other
expences.And remaining was being in the bank. So, they have a cash on
hand is Rs.25, 00,000.
They will use that cash in the future for the other major operation of the
Store, as per the advice of the experts & as per the requirement of the store.
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Break Even Analysis (General Assumption not realistic)
Break-even Analysis
Monthly Revenue Break-even Rs. 3,00,000
Assumptions:
Average Percent Variable Cost 25%
Estimated Monthly Fixed Cost Rs.20,000
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Profit & Loss Statement:
The Profit and Loss Statement is also called an Income Statement.
As you might imagine, the income statement provides some hints about
how efficient the young firm is being run. Typical components found in an
income statement are net sales, the costs of goods sold, the costs of
inventory if applicable, and regular expenses such as office rent, payroll,
supplies, etc. When both positive and negative finances are displayed on an
income statement, key components contributing to profit or loss for the
period can be identified.
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Balance Sheet.
The Balance Sheet has two main purposes; (1) Listing the assets of
your company and (2) Listing the liabilities of your company. Some
examples of assets that might appear in a balance sheet are cash on hand,
accounts receivable (amounts owed to your firm), furniture, company
vehicles, etc. Some examples of liabilities that might appear in a balance
sheet are accounts payable (amounts your firm owes to others), loan
amounts payable within a year, your equity investments made, etc. In a
typical start-up firm, owners' investments may be temporarily shoring up
the lack of sufficient accounts receivable.
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Conclusion
Over the last few years, retail has become one of the fastest growing
sectors in the Indian economy. The organized retail however is at a very
nascent stage though attempts are being made to increase its proportion to
15-25%by the year 2011bringing in a huge opportunity for prospective
players. The sector is the largest source of employment after agriculture,
and has started to penetration into rural India generating more than 10%
of India’s GDP.
Modern retailing has entered India in form of sprawling malls and huge
complexes offering shopping, entertainment, leisure to the consumer as the
retailers experiment with a variety of formats, from discount stores to
supermarkets to hypermarkets to specialty chains. However, kiranas still
continue to score over modern formats primarily due to the convenience
factor.
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ANNEXURE
WEBSITES:
WWW.GOOGLE.COM
WWW.SCRIBD.COM
WWW.MARKETINGTEACHER.COM
BOOKS:
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