Business Plan:

MAGIC MAIDS
Batch- F3
Group- 5
Anushrita Ghosh
Umang Pardasani
Hitesh Jeswani
Hardik Singh
Sudarshan Khaitan
Krish Veera
Mayank Bharatkinkar
Shruti Mishra
 CONTENTS
1. Executive Summery
1.1 Objective
1.2 Vision and Mission
2. Company Summary
2.1 Company Ownership
2.2 Company Location
3. Service
3.1 Service Description
3.2 Competitive Comparison
3.3 Sales Literature
3.4 Sourcing
3.5 Technology
3.6 Future Services
4. Market Analysis
4.1 Market Segmentation
4.2 Industry Analysis
5. Strategy and implementation
6. Web Plan Summary
6.1 Website Marketing Strategy
6.2 Development Requirements
7. Management Summary
7.1 Management Team
7.2 Management Team Gaps
7.3 Organisational Structure
 1. EXECUTIVE SUMMARY

Business Venture aims to provide maid facilities for busy household of urban areas in and
around Kharghar. The venture will be conducted under the management of Magic Maids
Private Limited. This plan will serve as the financial and operational outline for the first three
years of the venture’s operation. The company will obtain a loan through
The concept of Magic Maids is to provide maid facilities such as cooking, cloth washing,
dish washing, house cleaning, baby and old age care to the households. The venture will
focus on middle, upper middle and upper class people living in both private homes and
separate apartments who do not have time for such household activities. For this sake, the
company plans to advertise its service facilities through various channels like App
advertisement, pamphlets but above all it will rely more on personal links and relationships.
The venture will start from the beginning of 2019. The office will be located in ITM Business
School, Kharghar at the Incubation Centre.
Even though there are some players with similar concept in the market, which can pose a
challenge to Magic Maids Pvt Ltd, still we want to integrate our product with our quality
service and efficiency that would help us to stand in the crowd.
 1.1 OBJECTIVES
 To provide reliable and reasonable services all the year round.
 To provide wide range of services related to domestic chores.
 To create congenial working environment where all employees’ rights are protected.
 To work towards fair competition.

1.2 VISION AND MISSION

VISION
―To become a top class service provider to households‖

MISSION
People strive towards excellence. We want to become a household name where
people would be able to associate with us with just our brand only. We want to reach
the pinnacle of success with punctuality and expertise in service ingrained over the
period of time with a holistic hassle free approach. To do this we need to reach out to
as many people as possible in and around Kharghar and reach the break-even point.

2. COMPANY SUMMARY
The company ―Magic Maids‖ would be started by a group of friends, namely.
We cater to the needs of people from all walks of life. We are a service providing
company who provide help to manage the daily chores of life. The main moto of us is
to provide quality service at pocket friendly amount. Most of the people living out are
working so needless to say that people get less time to look into the affairs of
household and this problem gets accentuated in case of students and working couples.
That is how we analysed the gap in the market and conceived the idea of doing into
such a venture.

2.1COMPANY OWNERSHIP

We are an LLP company jointly owned by. All of us have got equal stake into the
business.

2.2 COMPANY LOCATION

For initially starting with the business and constraints of fund, we have taken the help
of ITM Business School, Sector 4. We will utilise their Incubation Centre to do
Our daily business till we can manage an office of our own.
3. SERVICE
3.1 SERVICE DESCRIPTION
Magic Maids Pvt Ltd is a company that will be providing the following services to the
customers:

1. Maids for housing cleaning.

2. Maids for cloth washing.
3. Maids for dish washing.
4. Maids for cooking.
5. Maids for care taking of:
A. Baby. B. Old aged. C. Handicapped.

All the employees working as house cleaner, dish washer, cloth washer, cook and caretaker
will do only those tasks for which they are assigned for and will be categorized under the part time workers
and will have to do all the household chores every day. The customers will have to fill a form mentioning their
need and type of service they require. Then the company will either search the maid or assign the existing maid
to the customer’s service.
Customers can directly contact the company for any complaints regarding the work of maids. Customers can
discontinue the service at any time. The Company will provide service with experienced maids and train them
if necessary.

3.2 COMPETITIVE COMPARISION

The company faces competition from other alternative services such as individual cooks,
laundry services, maids for household chores, babysitters, dish washers and children centres.
The company will also face stiff competition from start-ups like Mydidi, Helpr, Urban Clap,
House Joy and a few more.

There will be moderate level of competition from the already existing similar companies like
Bookmybai, JobNukkad, kaamwalibais and more.

There will also be a strong threat of new entrants as the entire business is about sourcing and
demand has never been a concern.

Table 1. Competitive Comparison Analysis Matrix

Aspects Magic Maids Bookmybai Helpr HouseJoy

Pvt Ltd
Price Average High High High

Quality Excellent Excellent Fair Fair

Operating hours 8 -5 8-5 8-5 8-5
mon-sat mon-fri mon-fri mon-fri
Service Excellent Excellent Fair Low

Customer Loyalty — Fair Fair Low

Advertisements Yes Yes Yes No

Website Yes Yes Yes Yes

Facebook Yes Yes Yes No

Renewal fee No Yes Yes Yes

OUR ADVANTAGES

The company will be charging an average amount of money to the customers compared to the
market price.

The company will also be operating on Saturdays. It will work on our favour as most of the
customers will be working professionals and on their off – days they can give precise
feedback.

The firm is expected to excel in the technology department with the launch of three new
mobile based products, further discussed in the business plan. It is expected to give a head
start to the company as very few competitors are possessing such similar technology.
The firm will provide free accommodation and food to workers who will migrate from
remote areas to the cities until they find a home to work at.

In case of abuse, Magic Maids Pvt Ltd will help workers by terminating their employment
and finding them a new job.

3.3 SALES LITERATURE

Sales literature will be distributed to both current and potential customers. It will include:
1. Brochures
2. Fliers
3. Newsletters, as well as other print media such as print advertisements.
Bricks and clicks is a highly skilled in graphic design and desktop publishing, and has quality
design and printing equipment to publish professional pieces at a low cost.

3.4 SOURCING
The company will hire two types of staffs working for the company; permanent and
temporary. A permanent staff of those working in the management team. They will be hired
for post like administrative officer, human resource/customer relationship officer, and
database operator. Newspaper advertisements and personal referral will be used for
recruitment of these staff. Selection will be done on the basis of review of qualification, prior
experience, soft skills (communication skills) and completion of interview.

Part time staff consists of maids. Personal networks, referrals and agents will be used to
recruit these staffs. Selection will be done on the basis of prior work experience and no
criminal records (all the maids will be checked for criminal records by using Criminal
Records Bureau(CRB))

3.5 TECHNOLOGY
The firm is bricks and clicks business model whereby online website is one of the most
crucial operations and used to cater for our clients. Therefore, technology is given important
aspect and as for creating and setting up the website, maintenance fee, web hosting and other
expenses pertaining our website, funds will be used by the company allocated for RM. The
firm also had purchased software such as Microsoft Office Application and MYOB as well,
for management and administration operation.

The company will heavily rely on technology as without technology this product cannot be
scaled. Along with geographical expansion, the company will be launching three new mobile
based products.

1. The firm will launch an uber – like app that will show the availability of domestic workers
in a particular locality and connect them with the customer.

2. A fin-tech app that will make payments via bank account transfer easy for customers.

3. A referral app for workers/maids to get job seekers on board and make a small commission
in the process.

3.6 FUTURE SERVICES

Magic Maids Pvt Ltd plans to serve other segments of the market.

The company will work towards providing services to private organisations and public
organisations which usually need cleaning, dish washing as well as cooking service.

To Colleges and schools which need cleaning and food preparation service. Kindergartens
which need care taker service.

To serve these new segments the company will hire additional employees in management and
as well as hire additional maids. Provide proper training to maids according to the need of the
new clients.

Table 2: Capacity Plan for the next five year

Year House Cleaner Cloth Washer Dish Washer Cook Care Taker
1 7 8 7 5 5
2 10 12 10 8 8
3 15 18 15 14 12
4 25 25 25 20 18
5 40 40 40 30 25

The company also plans on expanding its geographical dimensions. It will start sourcing
maids in Delhi and plans on gradually covering the northern regions of the country.
4. MARKET ANAYSIS
4.1 MARKET SEGMENTATION

The market segments for magical maids can be varied parts of the society , Basically the need
of a worker or maids is required when either the person is unable to do so or don’t have
enough time.

SERVICE CONSUMERS
Lower Middle class, upper middle class and upper class
Bachelor, Working couples
Single Parent, Retired elderlies

SERVICE PROVIDERS
Baby sitters
Cooks
Drivers
Cleaners
Senior citizen caretaker
Plumbers
Others

MARKET NEEDS

Nowadays maids are the lifeline of happy life. People are not having enough time to do all
the household chores. They need a helping hand to balance their personal and professional
lives. We provide a platform to both parties i.e., for Maid, we provide a platform to contact
their potential clients, and for our consumer, a helping hand.
We intend to provide safety and security to both the parties with pre-defined standards
payments which can be customized accordingly.

MARKET GROWTH
This industry is in a developing stage. But there is a huge growing demand of it. This makes
it feasible and sustainable company in market. We don’t have much competitor in the local
market. This reduce hurdles for us to grow and sustain in the market.
We believe in providing quality services and maintaining mutual benefit for both the
involved parties .This may lead to increase in our market share
 MARKET TRENDS
People don’t have enough time to do their household chores .In today’s scenario, people are
technology friendly and comfortable using it.
Mostly both husbands and wives are working professionals and are focusing in their career
growth, due to which they need maids for various mentioned requirements.
People are migrating from their home town for varied reasons, which generate the need of
maids
This is an emerging industry in India which has a huge scope and demand from our both
targeted segments i.e. maids and the service consumers
This industry is unorganized and unstructured, which might lead to exploitation of any
one/both the parties
Companies like us can contribute to make it more structured and make it more feasible and
approachable for both the targeted parties

4.2INDUSTRY ANALYSIS

The Magical maid’s pvt Ltd has decided to use porter's five forces model. The five forces are
threat of new entrants, bargaining power of customers, bargaining power of suppliers, threat
of substitutes, and competitive rivalry within the industry. Enterprises found its business in
the following point scale.

Industry Analysis
Competitive Rivalry
: The level of competition in the market is expected to be moderate due to huge market and
ability of each firm to differentiate its services
Threat of New Entrants:
In present situation there are only informal groups providing the service but seeing the profit
making opportunity it is expected that there will be entrance of huge number of companies
trying to prepare replica of business plan of magical maids pvt ltd
Threat of Substitutes
: There are few services that are of close substitute to the service provided by the company.
Laundry and Dry Cleaners companies are the major substitutes for cloth washing and old age
homes and Kindergarten for Care taker
Service but these are expensive compared to company’s service. So the threat of
Substitutes is moderate
Bargaining Power of Supplier:
For Part time maids the suppliers will have weak bargaining power since the company can
directly negotiate with potential maids
Eliminating supplier role. Hence they will have weak bargaining power.

Bargaining Power of Customer:

The ability to bargain for the price and quality in the present period will be high of customers.
Also with the increase in number of new companies providing similar services will further
make their bargaining power of customers strong.

DISTIBUTION CHANNEL

Local Labour Supply:

The requirement of personnel for the business will be fulfilled by local labour market. The company will make
use of informal channels like local agents and also those individuals trying to find permanent job. Also it will
vacancy announcement in the appropriate media to attract the maids working in the LOCAL AREA. It will
also use informal channels to inform labour about the employment opportunity. The company will recruit the
best personnel from the available market source.

COMPETITION ANALYSIS

In Price/Quality dimension, Magical Maids pvt ltd. will be preferable than the competitor because it is
specialized in quality service. Direct competitors of Magical Maids pvt ltd. are those individuals who are
involved in providing house cleaning services, dish washing services, cloth washing services, cooking
services, care taker services individually. There are also some companies which specialize in providing these
services but only provide one or two segments of services. The indirect competitors will be laundry and dry
cleaners companies in the market.

Some of the renowned competitors are as follows:-

 Just Dial
 Book my bai
 Sulekha.com
 And other various small local agencies
5. Strategy and implementation strategy

Porters 5 Force: -
Industry Analysis Competitive Rivalry: - The level of competition in the market is
expected to be moderate due to huge market and ability of each firm to differentiate its
services.
Threat of New Entrants: - In present situation there are only informal group’s providing the
service but seeing the profit making opportunity it is expected that there will a huge number
of companies coming up with this kind of business.
Threat of Substitutes: - There are few services that are of close substitute to the service
provided by the company. The old age homes and Kindergarten for Care taker service but
these are expensive compared to company’s service. So the threat of substitutes is moderate.
Bargaining Power of Supplier: - For Part time maids the suppliers will have weak
bargaining power since the company can directly negotiate with potential maids eliminating
supplier’s role. Hence they will have weak bargaining power.
Bargaining Power of Customer: - The ability to bargain for the price and quality in the
present period will be low of customers. Also with the increase in number of new companies
providing similar services will further make their bargaining power of customers strong.
SWOT Analysis: -
 STRENGTH: - The Company will provide quality service within economical price range. The
service process is customer oriented and will have good database of employees.
Strength will be the consistency in the quality of the service which creates the loyalty among the
targeted customers. Location of the company makes it accessible to both employees and customers.
 Weakness: - The Company’s does not have prior experience in this field. It does not have established
connection with dispersed individual maids. It lacks better technology to maintain the record of
employees and transactions.
 Opportunity: - The changing lifestyle of people provides opportunity for huge demand for maid
service. Also there is an increasing trend of keeping a part time maid indicating the rising living
standard of people. By the time competitors will enter the market the company will have penetrated in
many areas. Moreover, so the company can get the first mover advantage.
 Threat: - The existing businesses providing substitute services like laundry and dry cleaners, cook
services and old age home centres and Kindergarten could pose a threat to the company. Also the
direct hiring of individual maids by households might reduce the demand from the company and also
customers will have high bargaining power.
Marketing Strategy: -
Magic Maids will follow Cost Focus under Porter’s generic strategy matrix. The cost focus strategies have
narrow scope and its source of competitive advantage is cost. The strategy company chooses depends
 upon the needs and expectation of customers, competition in the industry, and other external
environmental factors.

Marketing strategy in different stages of PLC: -

1. Introduction stage: - Build buyer awareness and entering slowly towards other stages of buyer
readiness stages. Price of service kept constant for some years. Focus on inexpensive & effective
marketing strategy-referrals, newsletters.
2. Growth Stage: - Number of household’s starts to increase at higher rate. Company will increase
price of service to adjust demand pull and supply push inflation in later years. Focus will be to
train employees. Advertising/Promotion goal will shift from awareness to convincing and
encouraging use of service.
3. Maturity: - Retaining existing customers. Reducing price according to competition and demand.
Aggressive sales promotions.
4. Decline: - Reviewing sales, market share, and cost and profit trends on a real time basis and
designing counter strategy. Maintain brand image. Reposition or revive brand to move back to
growth stage, look for new segments.
Marketing Mix Strategy: -
 Service Strategy: - Magic Maids aims at providing maid service to households of different wards.
Since there is a no formal provider of such services our main objective is to meet the demand with all
types of services according to the need and demand of the households. All the services will be
provided within three days of formal request. Customers can choose any or all services. All the maids
will be trained before assigning them to customers. Any wrong doing by maids will be taken
responsibility by the company. Customers can discontinue the service from our company by
notifying to customer relationship officer one week ahead of decision to formally discontinue service.
 Pricing Strategy: - The pricing objective of Magic Maids is to provide service at low cost without
compromising on quality service. It wants to establish as low cost leader in the industry. The price per
type of service is set on the basis of cost plus profit margin.
Service Rate per month for each year(Cost Structure): -
Service Revenue Forecast for next five years(Sales Forecast): - (Random Variables)
 6. Web Plan Summary
Magic Maids is an innovative online enterprise that is involved in providing
various services such as care taking of house, baby sitting and housekeeping.
The enterprise is mainly focused on providing range of services and extra help in
busy life of people. Although we have projected modest sales because of difficulty in
predicting online sales activity, we believe the potential exists for internet sales to become a
substantial percentage of our revenue. We will be selling all our available services through
our website.
Special Mobile Application download offer will be posted from time to time on the
website as well as application. In the beginning the customers will be getting the referral
bonus as anybody books a service through their reference.
The website will obviously act as an ―online brochure‖ for the customers as it will
enable the visitors to see the service provided by us as well as the feedback and rating given
by the customers.

6.1 Website Marketing Strategy

All communications material will include the Magic Maids website address. For the media,
an online press kit will be available which will include downloadable photos, stories of
interest, testimonials and bios of key management. In app pop-ups will be done as a part of
marketing strategy. Advertisement in between the video’s on websites such as YouTube.

6.2 Development Requirements

Magic Maids plans to employ a graphic designer and back-end user interface technical
developer to create our simple, classy, yet Internet focused site. We will also be requiring a
mobile app. developer to develop a mobile application both android as well as iOS
compatible phones.
The maintenance of the website will be done by contracted outside consultants. As
the website is expended and improved, future development may include tracking, newsletter
and various other services. Similarly, for the app. we would be requiring a professional who
would be assisting us with various services. The app would require a regular bug fixing and
upgradation as per the market requirements.
7.0 Management Summary
I, Hitesh Jeswani will be the major decision maker in the overall management of the company. I will be
responsible for the overview of the overall business. I will be working as managing director of the company.
So, I will be responsible for planning, goal setting, strategy formulation and implementation and manage
daily operation of the company.

The company will be needing two officers; Administrative officer and Human Resource/Customer
Relationship Officer. Both the managers will be given full authority to manage and operate their respective
divisions. All are independent to formulate plans and strategy for their divisions. However, final approval will
be made by managing director Besides maids the total number of staffs at the initial years of operation will
be three. All the staffs will be made permanent within two months of work in the organization.

7.1 Management Team

The business would be owned by Hitesh Jeswani. And he will be appointed as the managing
director. And Krish Veera will be appointed as the administrative/accounts officer. Both of
them will be responsible for the planning and goal setting of the business. But they will be
hiring a human resource/customer relationship officer as of now for recruitment and training
of employees.

7.2 Management team Gaps

Initially Hitesh and Krish will fill in many of the management gaps. Over the time they have
plans to recruit a sales manager and marketing manager.

The detailed Organisational Structure is as follows:

 7.3 Organisational structure

Managing Director

Administrative/ Human Resource/ Customer

Accounts Officer Relationship Officer

Database Operator
Maids Cooks Caretakers Babysitters