Business Plan Report

“Store 2 Door” - Organic Vegetables with Home Delivery

Submitted To

T.M. Taufique Hossain

Course Instructor-Business Communication (Bus 251)

School of Business

Submitted By

Md. Salahuddin 082012030

Nur Mohammad 083004030

Group: 06, Section: 07

Submission Date: December 9, 2012

Healthy Life through Organic Vegetables…

Store 2 Door

Table of Contents

1. Executive Summary…………………………………………………………………….

2. Background…………………………………………………………………………….

3. Introduction…………………………………………………………………………….

4. Mission Statement………………………………………………………………………..

5. Vision Statement…………………………………………………………………………

6. Industry Analysis……………………………………………………………………….

6.1. Porter’s Five Forces………………………………………………………………..

6.1.1. Threat of New Entrants………………………………………………………

6.1.2. Threat of Substitutes………………………………………………………..

6.1.3. Bargaining Power of Suppliers…………………………………………….

6.1.4. Bargaining Power of Buyers.......................................................................

6.1.5. The degree of rivalry between existing competitors...................................

7. Company Analysis………………………………………………………………………

7.1. Objectives…………………………………………………………………………..

7.2. Goals…………………………………………………………………………………

7.3. Competitive Advantage…………………………………………………………..

8. Market Analysis……………………………………………………………………..

8.1. SWOT Analysis……………………………………………………………………….

9. Business Model……………………………………………………………………….

9.1. Business to Customers (B2C)………………………………………………………….

10. The Organizational Plan……………………………………………………………………..

10.1. Buying Process………………………………………………………………………

10.2. Revenue Model………………………………………………………………………

10.3. Our Offerings…………………………………………………………………………

11. The Administrative Plan……………………………………………………………………..

11.1 Location……………………………………………………………………………

11.2 Management…………………………………………………………………………

11.3 Personnel……………………………………………………………………………..

12. The Marketing Plan………………………………………………………………...

12.1. Target Market Customer....................................................................................

12.2. Competition…………………………………………………………………………….

12.3. Marketing Mix……………………………………………………………………

12.3.1. Product……………………………………………………………………………..

12.3.2. Place……………………………………………………………………………

12.3.4. Price…………………………………………………………………………

12.3.5. Promotion……………………………………………………………………….

13. The Financial Plan……………………………………………………………………………

13.1. Cost…………………………………………………………………………….

13.1.1. Fixed Cost………………………………………………………………..

13.1.2. Variable Cost…………………………………………………………………..

13.2. Revenue………………………………………………………………………………….

13.3. Break Even Analysis……………………………………………………………………

14. Conclusion…………………………………………………………………………………

15. Appendix…………………………………………………………………………………….

16. Bibliography………………………………………………………………………………

Letter of Transmittal

December 9, 2012

To,

T.M. Taufique Hossain

Lecturer, School of Business

North South University.

Subject: Submission of Business Plan Report on “Store 2 Door”.

Dear Sir, Here we are submitting our Business Plan Report on “Store 2 Door” prescribed by you in your course Business Communication (BUS-251). We would like to recall with gratitude, the tremendous support and encouragement, which we received from you. We have tried our best to implement the relevant theories that you have taught in this course.

As an instructor and advisor to the report, you made critical reviews of various earlier reports, provided valuable insights and academic training to improve the quality of the work. We are grateful for your stimulating guidance and encouragement during the period of preparation this project. Without your guidance, this would simply not have been possible.

There may have many omissions and errors on our part but we have tried our level best to prepare this report to the required standard.

We are looking forward for your kind appraisal on this project.

Thanking you in anticipation.

Sincerely Yours,

……………………

Md. Salahuddin

……………………Nur Mohammad

Acknowledgement

We are thankful to “T.M. Taufique Hossain” sir for giving us this opportunity to make a

Social Business Plan. It is our great pleasure to express our profound sense of gratitude to our

respected Guide faculty member for his constant help and precious suggestions to enhance the

quality of the report.

We are grateful to all the faculty members, for their valuable suggestions for the

successful completion of our report. At last, but not the least, we thank all my friends those who

have guided us, supported us and helped us in completing our work on time.

6. Executive Summary

We are “Store to Door” a complete home delivery service of fresh and organic vegetables and

a perfect solution of your daily kitchen needs. Our corporate office is located in Kuril

Bishawroad, Dhaka. There is no other branches and retail store in Dhaka city. We are a unique

one in this sector because we monitor throughout the whole growing process all of our

vegetables so that we can keep our promise. Another uniqueness of our business is after sales

service like we have two after sales representatives, their responsibilities are make sure that

whether the customers are getting their products at the right time or not. We want to make a

long term relation with our customers instead of short term they can make our profit boom.

There are many more opportunities in our business so far we have no well established

competitor in this sector. In today’s world people are more conscious about their foods and

how it is growing up actually. Although our management team consists of only two personnel

but we believe that we are capable enough to maintain all of the process. From our market

research so far we know that there are a few competitors in the market but they are not very

strong and they are using overpromising in their service that breaks the customer’s faith. We

estimated that from the second fiscal year we will be a profitable one. So, Store 2 Door is a

very feasible and profitable business and we hope that we will be able to expand the business

and become the market leader in this segment of business.

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7. Background

The beginning of Online shopping can be traced as far back as 1994 when Pizza Hut became the

first pizza chain to offer online ordering or home delivery services on a test basis in Santa Cruz,

California. They were closely followed by amazon.com in 1995, which created a revolution in

how people do their shopping. Though online shopping has become common place in the

western and European countries it has yet to become popular in Bangladesh. There are only a

few companies which have started online businesses at a limited scale for Bangladesh. This

paper explores how Store 2 Door can live up to the prospects and feasibility of online business in

Bangladesh; through supply of fresh perishables to our customers. Analyzing all the risks

associated with such businesses and the development of an effective business model for such an

operation in Bangladesh. The study reveals a substantial scope for creating an online superstore

in Bangladesh. There is a latent demand for such a service which can be realized if security and

trust can be ensured. The online survey reveals that interested shoppers give maximum

importance o safety and security of transactions as well as the variety of products available. A

further research must be conducted to design products assortment. The business model for this

venture targets the urban inhabitants and how the business can develop methods for the safety

and security of the transactions in the business processes. Security is the most important risky

aspect associated with this line of business. Security risks are found at both the supplier and the

users end. The users are most concerned of the security of transaction and their personal

information. The suppliers are concerned about the security of the website as the lack of

cybercrime control poses increasing risks for any business from hackers, spammers and malware.

The use of other forms of security such as security cameras will allow potential customers to get

a live view of the warehouse by which they can check inventory quality and hence create

revolution in the online shopping industry. In conclusion, a online superstore has great prospects

in a growing economy like Bangladesh if supported by the country’s infrastructure and macro

environmental factors. There is a strong possibility that e-commerce is going to be a popular

concept in Bangladesh. The justifications are provided as follows:

I. People’s computer literacy and internet accessibility are rapidly increasing these days. They

are becoming more prone to surf through different websites and make a purchase decision.

II. Making a purchase online will be convenient for buyers as they don’t have to go to the store

physically and product delivery will be done at their convenient time and

place.iii. The number or credit and debit card users are rising day by day. Thus, it increases the

likelihood of online payment. Because of the aspects mentioned above it can be assumed that the

concept of online superstore has an explicit demand and this report analyzes the feasibility of

such an online superstore.

8. Introduction

E-business is one of the fastest growing business sectors in the world. The usage of Internet

around the world has grown over 400% from year 2000 to the year 2010. In Bangladesh, 3.46%

of total population, a staggering number of 5,501,609 people is using internet actively which was

only 100,000 back in the year 2000. These numbers encourage companies to build websites and

to come up with new ways of serving their customers online. In many cases in B2C businesses

this means creating an online store or a “web store”. In addition to that, the number of companies

that operate almost fully through the internet is growing all the time at a fast pace. The great

impact that the Internet has had on the global marketplace is described aptly by Peter F. Drucker:

“The explosive emergence of the internet as a important, perhaps eventually major, worldwide

distribution channel for goods, for services, and, surprisingly, for managerial and professional

jobs is profoundly changing economies, markets, and industry structures; products and services

and their flow; consumer segmentation, consumer values, and consumer behavior; jobs and labor

markets. As lives become busier and fast paced, people look for faster and more convenient ways

of accomplishing routine tasks. The task of doing daily shopping to meet day to day household

needs is one such task that people seek to simplify. To support this need online shops and

superstores are becoming a necessity nowadays. The influence of Globalization has drastically

changed the socio-economic structure of Bangladesh in the past two decades. The fast pace of

our western counterparts has filtered in to our societies to a certain extent as we try in and

compete in a global market. The changing lifestyles, the increasing trend of women in the

workforce and the busy roads of the big cities have had significant impact on how households

run. As people look for convenience in every aspect of life, the need for services which fulfills

this need increases. Online superstores is one such service which can ease the lives of its users by

allowing them to complete their household and regular shopping in the comfort of their homes

or offices However, the concepts of shopping online and online superstores are still new in

Bangladesh.

This report will provide an outlook on how Store 2 Door would enter the market of online

retailing through providing fresh vegetables to the customers and taking consideration of all the

issues before starting an online superstore in Bangladesh. This report concentrates mainly on the

feasibility of the Store 2 Door, to conduct a need analysis of such a service in Bangladesh, to

develop the business model for an online superstore in Bangladesh based upon the existing

superstores in the country and online superstore abroad, to identify potential problems and risks

associated with online superstores in Bangladesh. In Bangladesh there are several websites who

provide some features of e-commerce, i.e. getting to know about the product, price, and other

attributes of the item to be purchased / sold. However in most cases the buyer and seller will

have to meet in person, take the delivery of the product, and make the payment. There are only a

limited number of sites selling very specialized products options for automated delivery and

online payment.

9. Mission Statement

Store 2 Door is mainly based on an online construct, therefore it is considered more technically

oriented with the internet. With the conjunction of our customers the business tends to operate

and function. The sole mission of our business is to provide qualitative fresh perishables to the

customers, through execution of an effective online and service based system. Our services are

solely based on their demand, to provide the fresh products delivered straight to their doorsteps.

We strive to enrich the satisfaction of our customers, by providing them with unparallel service

in the most efficient manner. This is turn would prove successful for the business. It is the duty

of the business to perform with integrity and seek to balance the satisfaction of the needs of our

customers, associates, consultants, suppliers and the community. Our mission is to help our

customers with fresh fruits and vegetables which have become near impossible to be found in the

local retail shops. Fresh perishables are hard to find in any shops due to the increased usage of

adulterated chemicals used in these products so as to increase sales; therefore our business would

help customers get access to fresh and qualitative vegetables and fruits.

10.Vision Statement

The vision through which our business structure rides on is to allow the distribution of fresh

products of nature. Healthy eating is essential so as for the population to be productive and

active. Therefore it is the very duty of Store 2 Door to provide the best and fresh gifts of nature

without the mixture of any harmful chemical and destroying the very integrity of nature. These

factors are essential to note, as we are very few businesses that are actually performing this duty;

with the very addition of online service so as to have a more convenient approach for the

customers to purchase our products.

6. Industry Analysis

6.1. Porter’s Five Forces

The main theme of the company is to provide with chemical free fresh fruits and vegetables with

premium pricing.Porter’s Five Forces help us to realistically assess potential levels of

profitability, opportunity and risk based on five key factors within an industry.

- The threat of entry of new competitors (new entrants)

- The threat of substitutes

- The bargaining power of buyers

- The bargaining power of suppliers

- The degree of rivalry between existing competitors

6.1.1. Threat of New Entrants

The main theme of the company is to provide with chemical free fresh fruits and vegetables with

premium pricing.As this concept is not very available but still there is high threat of entering new

competitors.

6.1.1.2. Not too expensive and easy to enter the business:

This business is not too expensive and entering the business is not that difficult,this is one of the

major reason of increasing threat of new entrants.And new entry quite easy so people will

interested to enter in this business.Manufacturing-based industries are more difficult to enter than

many service-based industries.As it is a service based business so new entry is more easier here.

6.1.1.3. Economies of scale:

These economies arise when firms that produce or order at larger volumes enjoy lower costs per

unit because they can spread fixed costs over more units,employee more efficient technology, or

command better terms from suppliers.As in our business we will order large volume of fruits and

vegetable ,it will be an advantage of ecomies of scale.Thia type of advantage will attract people

to enter in this business.

6.1.1.4. Minimum customer switching costs:

Switching costs are fixed costs that buyers face when they change suppliers. The larger the

switching costs, the harder it will be for an entrant to gain customers.But business like ours has a

minumum customer switching costs.This in another reason the risk of entrants is high.

6.1.1.5. Easy access to distribution channels:

As we are planning to get our fruits and vegetable from ashulia,this is a place where people can

easily access.This in one of the reason which make the easy access to distribution channels.In

such business middle intermediaries are minimized.As in this business there is high scope to skip

intermediaries and access to industry distribution channels,so threat of new entrants is high here.

6.1.1.6. Government or other binding policy:

Government policy can hinder or aid new entry directly, as well as amplify (or nullify) the other

entry barriers.But government policy is not that difficult in such business like ours,so threat of

new entrants is high here.

6.1.1.7. Lucrative industry profit:

Barriers to entry are more than the expected ebb and flow that markets typically experience. For

example, when industry profits increase, one would expect firms to enter the market to take

advantage of the high profit levels, which will eventually result in reducing profits.If anyone

looks as if we're making a sustained profit, new competitors can come into the industry easily,

which may reason to reduce our profits.

The Results:

The threat of new entry is quite high.But we will try to make a strong position in the indutry by

providing the higher quality and maitining high standard.

6.1.2. Threat of Substitutes

The presence of substitute products can lower industry attractiveness and profitability because

they limit price levels. The threat of substitute products depends on:

6.1.2.1. Buyers' willingness to substitute:

In our business there is no substituesis that can identify,still if buyers are willing to substitute

than it might harm our company.

6.1.2.2. The relative price and performance of substitutes:

If the substitute product provide customer the relativly lower price without mainting the quality it

may harm our firm.

6.1.2.3. The costs of switching to substitutes:

Cost of switching to substitute is low in our firm.This in one reason which may harm our firm.

The Results:

There is very little threat of substitution.But still we are planning to observe the market and make

it fruitfull for our business.

6.1.3. Bargaining Power of Suppliers

Our business is largely dependent on suppliers.Without teustworthy and accountable suppliers it

is quite difficult to run a service based business like ours. If suppliers have high bargaining

power over a company, then in theory the company's industry is less attractive. The bargaining

power of suppliers will be high when:

6.1.3.1. Threat of forward integration:

The supplier group can credibly threaten to integrate forward into the industry. In that case, if

industry participants make too much money relative to suppliers, they will induce suppliers to

enter the market.Though we are planning to give the suppliers their deserving payment but still

there is an threat of forward integration.Because we have to maintain our product standard and

compete with the other competitors.Though those peoples way of providing fruits and vegetable

is not similar,still in some extent they are our competitors.

6.1.3.2. There are many buyers and few dominant suppliers:

Though our concept of delivering fruits and vegetable is new and unique but the supplies of

fruites and vegetable is not new.A lots of businesspeople are getting product from them.As the

suppliers have a lots of buyes ,so it will make their burgaining power more flexible.Which is a

disadvantage for us.

6.1.3.3. Reduce the quantity supplied:

The main theme of the company is to provide with chemical free fresh fruits and vegetables with

premium pricing.One of the main key is CHEMICAL FREE FRESH,that means QUALITY is

our main concern.But most of it depends on the supplier,If they are unable to provide us the

quality product it will be difficult for us to maintain our standard.

6.1.3.4. Low dependency on buyers:

The supplier group does not depend heavily on the industry for its revenues. Suppliers serving

many industries will not hesitate to extract maximum profits from each one.As we are dependent

on few credible suppliers,on the other hand they are not dependent on us they can charge higher

from us.

The Results:

As we know the best defense in mitigating the power of suppliers is to build win–win

relationships with suppliers or arrange to use multiple suppliers,we are planning to follow this

technique.

6.1.4. Bargaining Power of Buyers:

Buyers are the people / organizations who create demand in an industry.The bargaining power of

buyers is greater when-

6.1.4.1. Buyers threaten to integrate backward into the industry:

If buyers believe they can always find an equivalent product, they tend to play one vendor

against another. Buyers face few switching costs in changing vendors.As we are charging a littile

bit more from the current market the customer may sometimes ignore the quality and think of

alternative provider which may harm our business.

6.1.4.2. Incur low switching costs when they change vendors:

Switching cost is very low in this business,they can easily switch to other vendor it may harm

our buisness.

6.1.4.3. Price sensitiveity:

Most of the people are price sensitive by nature.The product it purchases from the industry

represents a significant fraction of its cost structure or procurement budget. Here buyers are

likely to shop around and bargain hard, as consumers do for home mortgages.As we dont have a

option to burgain we may loose few customer who are price sensitive.

6.1.4.4. More demand within reasonable price:

Powerful customers – the flip side of powerful suppliers – can capture more value by forcing

down prices, demanding better quality or more service(thereby driving up costs), and generally

playing industry participants off against one another, all at the expense of industry

profitability.As to meet up with their demand and price it will kind of hard to maintain our

customer with quality.

The Results:

To mitigate the power of buyers, we try to seek to select buyers with less power to negotiate,

switch suppliers, or develop superior offers that strong buyers cannot refuse.

6.1.5. The degree of rivalry between existing competitors:

The intensity of rivalry between competitors in an industry will depend on:

For example, the intensity of rivalry is increased by the following industry characteristics:

6.1.5.1. Customer loyality:

There are a little competitors of our same pattern business,but those business peoples loyality is

high than ours as we are new in market.So in the first stage our customer loyality is low.

6.1.5.2. Brand identity:

As a new business our brand is in a initial stage.It will a little bit hard for customer to identify

our brand.It may help our rivals.

The Results:

Porter’s Five Forces can assist us to better understand these dynamics in a more objective

manner and hopefully make better strategic decisions as a result. This model used as a tool to

better develop a strategic advantage over competing firms within an industry in a competitive

and healthy environment. It identifies five forces that determine the long-run profitability of a

market or market segment.

7. Company Analysis

7.1. Objectives:

The main objectives of Store 2 Door are as follows:

We want to distribute fresh quality perishables in the market for the customers to

consume.

We want to deliver a combination of seasonal and off-seasonal fruits and vegetables to

the customers at the best possible quality, without any compromise.

To encourage the use of online retailing so as to develop and enhance both the consumer

and producer market of Bangladesh; therefore bringing about various other benefits and

advantages.

To provide fresh and healthy items to customers and to increase the productivity of the

population as a whole; therefore creating an improved reputation for the business.

Rid the market from harmful chemicals which poses threat to the consumers.

Encourage the intake and cultivation of unprocessed organic agricultural products.

7.2. Goals :

Short Term Goal Mid Term Goal Long Term Goal

Introducing online delivery of

organic grocery for the first

time.

Increase the level of current

customer base

Obtain maturity stage and

having the market leader status

Increase profitability Develop the current online store

through customer and market

research. Other amendments

that are necessary would also be

taken into consideration.

Increase company wealth by

diversification and

differentiation

Increasing customer satisfaction

through constant improvements

and development in the

management process

Set up a personal service

centers that offers flexibility,

value and reliability to our

customers

Expand newer opportunities

Cutting down cost so as to

increase profit margin and

indulge in constant

improvement for cost effective

management.

Improving program that

generates increased exposure

and income for Store 2 Door

Lasting legacy

Improving efficiency Looking for foreign exposure

into international market.

Tapping into other markets and

even going public. For

expanded capital accumulation

7.3. Competitive Advantage:

JIT, Just-in-time inventory: Control system helping to reduce the moving, storing and

holding cost of inventory. The products would be sold on a daily basis without any

holding of additional stock or inventory; thus reducing the cost to a significant portion.

Low labor cost: Store 2 Door will not require any standard skilled-workforce during the

operation of delivery of the perishables. The business merely requires drivers for the

delivery vans and additional workers to help with the carriage of the stock.

Favorable climate condition: Bangladesh has favorable weather conditions so as to

support the cultivation of a diverse set of fruits and vegetables. At times bumper harvest

can mean a good chance for the business lower cost or attain a high margin profit.

First-mover advantage: Only a few businesses have actually started such form of

business; therefore Store 2 Door would gain significant first-mover advantage through its

online based purchase and research system.

Usage of internet technology: Therefore faster communication and reduction in the

level of cost.

8. Market Analysis

8.1. SWOT Analysis:

Strengths

1. Offering relatively new home delivery

service for fruits and vegetables

2. Our fruits and vegetables are chemical

free and fresh

3. Providing quick and convenient service

in order to save customer’s time

4. Online orders and payments

5. A good number of products

Weakness

1. Traffic congestion/parking

2. Limited budget

3. Outstanding loans

4. No or less experience than competitors

5. Competition from already established

competitors

OpportunitiesThreats

1. Customer demand

2. 2. Affordable price

3. 3.Develop market with existing

products

4. Higher Profit Margin

5. 5. Greater Consumer Response

1. High probability of increased

government regulations.

2. 2.Strikes and political crimes

3. 3.Environmental disaster

4. 4.NewEntrants.

9. Business Model

Store 2 Door is a common platform where the distributors, retailers and wholesalers can supply

to the needs of the household customers. Store 2 Door enables a greater market reach to the

suppliers and convenience to the customers. It provides an online platform for household

customers to choose from a wide variety of products listed by the suppliers (distributors,

wholesalers, retailers). It also allows the suppliers to enlist their products to ramp up their sales

by increasing their reach. This portal also acts intermediately between the distributor and

wholesalers or retailer to supply goods that are unavailable locally.

9.1. Business to Customers (B2C)

This is meant for household customers. This model is built around providing convenience,

quality and best value for money to the end users. The customers can browse through the

catalogs and see the different items listed by the suppliers. The customer orders the selected

items and we deliver the product on their doorsteps. This is our main focus and we concentrate

all of our initial resources at this. Customers would directly interact with the business through the

official web portal; choose their necessary items desired. Using credit card, debit card, cheques

and cash customers would be able to purchase from the Store 2 Door online portal. Delivery vans

would circulate through the destined locations and delivery to the consumer’s residence. Store 2

Door will primarily focus in providing a central hub for customers to purchase directly from the

website, the business will act as a liaison and the hub between wholesalers and customers.

10. The Organizational Plan

10.1. Buying Process

This process allows users to search and buy different products listed by sellers

10.1.1. Registration

To buy on Store 2 Door one must be a registered user. It's fast, easy and free. As a registered

user, they can shop and place orders on Store 2 Door. Through registration the customer is

considered a virtual subscriber to the business; hence they will be able to avail all the benefits

from the website.

The registration involves the following steps:

1. Contact Information

2. User ID & Password Creation

3. Email Confirmation

10.1.2. Browse

Browsing is clicking through lists of titles called categories until one find something they are

interested in. The customers would be browsing through all the perishables that are currently

available. In most cases seasonal products would be made available, but in the future as the

business progresses more rare and off-seasonal perishables would be in stock. As the business

invests further in the capital equipment such as freezers and containers, the product lines can be

extended.

10.1.3. Select

Before one buys or place an order, they can know about the item and seller to make an informed

decision, paying attention to the:

Listing information

Product details

Shipping and payment details

Seller information

10.1.4. Payment

After the buyers have selected their products they are given a choice of selecting their payment

mode/method. There are many payment methods and most sellers offer more than one. Some

methods offer more protection than others.

Listed below are the most common payment methods:

Demand Drafts

Cash on Delivery (COD)

Buyer Pays and Picks Up

Cheque

Credit & Debit Cards

10.1.5. Feedback

Feedback is made up of comments and ratings left by members who have bought from and sold

to. Once customers have received their items, they can leave feedback for the seller and the item,

letting future buyers know about your experience with the seller.

Type of information typically included in seller feedback:

Satisfaction with the item

Quality of communication

Quality of packaging

Promptness of shipping

Courteousness

10.2. Revenue Model

The revenue model of Store 2 Door is very simple. Store 2 Door does not charge any customer

for browsing. The browsing is made free of cost. The revenue model can be segregated onto the

following sub categories, namely:

10.2.1. Registration Fee

Manufacturers or Distributors pays annual rent for registering to Store 2 Door. In order to enlist

their products or to put any kind of advertisements the companies must be registered. This is a

fixed rent.

10.2.2. Listing Fee

Manufacturers or Distributors pays annual rent for listing each product. This is a variable rent

calculated keeping the cost and various other factors in mind.

10.2.3. Service Charges

Service Charges are in terms of the following:

Shipment – Store 2 Door charges a nominal amount for shipment of products to the door

step. This depends on the distance and amount gradation.

Maintenance – Store 2 Door also charges a percentage of the order for maintenance of

its business.

Discounts – Store 2 Door offers discounts to all of its deals depending on the time and

volume of orders.

10.3. Our Offerings

Our offerings to the customers are:

1. Convenience

2. Timely delivery

3. Cheapest Deals

4. Quality Assurance

5. Value for money.

11. The Administrative Plan

Location: Our corporate office is located in Kuril Bishawroad, Dhaka. We have no other sub-

office or outlet in Dhaka city. All of our operations are monitored from corporate office. Our

management hierarchy is very simple because we are operating small business with limited

budget.

Management: We are two owners. Md. Salauddin holds 60% share, he is the CEO of this

business and Nur Mohammad holds rest of the share, he is the COO and CMO of this business.

Personnel: We have an IT manager who maintains all of the It related activities. There are two

customer service representatives in our business and they solve all sort of customer related tasks

such as making call to the customers, receiving the call, sending e-mail, taking order etc. We

have three direct sales representatives, they will go to the customer’s house with our pick-up ban

and they will interact directly with our customers. There are three full-time drivers. Though we

have two pick-up bans so one driver will work as a backup service. We have two office staff

also.

12. The Marketing Plan

12.1. Target Market Customer

The target customer of Store to door company is specified to three categories of social classes of

the society. They are Upper-Upper class and Upper-Middle class. This segmentation id done

based on income, location and life style. The main theme of the company is to provide with

chemical free fresh fruits and vegetables with premium pricing. That’s why it is very important

for the company that its customers accept this strategy. The target customers of the company are

the people who are earning 50,000 and above which follows the three social classes mentioned as

the target customer.

The Upper-Upper class is mainly the aristocrats and is blue bloods of the society. This group of

people usually does not go for their grocery shopping by themselves. They rather appoint a

servant for such duties. They mostly care for quality than price. For good quality products, they

are ready to give premium price as well. As this group of people does not go for shopping

themselves, home delivery will be a very convincing idea for them.

The Upper-Middle class is a bit more deal seeker than the upper-upper and lower-upper class

people. But still they care about the quality. If quality can be assured to them, it is highly likely

that they will be ready to pay a premium price. The people of this social class directly involve

themselves in weekly grocery shopping. They always seek for the best quality while shopping

regardless price. The class consists of the brains and eyes of the society who also leads a busy

life and that’s why always seek for options that can make their life much more relaxed. Keeping

this point in concern the delivery service of Store to door is likely to be acceptable for the social

class.

The people of these social classes mostly live in the areas like- Gulshan, Banani, Baridhara,

Dhanmondi, Uttora and Baridhara. So, these places are selected as the distribution areas of the

company. Also most of the offices of the multinational companies are situated in these places. So

it will be a great opportunity for implementing the marketing and advertising strategies of store

to door company in these areas. The exposure will be much higher and effective.

12.2. Competition:

Store 2 Door would enjoy the lack competition; due to only a few online retailers existing in the

market. Store 2 Door will face direct competition from “hutbazar.com” and “giftzhaat.com”.

Therefore direct external competition exists, which have been prevailing in the market for some

time. It is predictable; that forecasted competition profile as we know that when our service-

based company becomes successful other companies will start to bring in future competition.

Higher profit potential would encourage new businesses to enter the market.

Number and

size of Firms

Store 2 Door is an online grocery business; there are similar types of

businesses currently on the rise due to technological developments and lower

costs of maintenance.

Industry size

and Trends

In Bangladesh, online grocery business is a potential market. Therefore.

There is growth in its popularity and the markets are expanding. It is also

highly demanding amongst the urban populace. Hence, Store 2 Door can

exploit the opportunity to tap into this segment of the market.

Product Ranges The range of products for Store 2 Door consists of 2 different lines: - fruits

and vegetables. Although fruits and vegetables are generic in nature,

providing organic perishables are another potential market which never have

been discovered. So there is a large opportunity that competitor might dig in

with wide range of products that consists of four or more variants. Thus,

Store 2 Door needs to be aware of the fact.

Differentiation

Strategies

Store 2 Door needs to put major emphasis on functional benefits of the

advertisement; rather than the monetary benefits. Maintaining good

relationship with the suppliers by giving them little trade discounts or other

incentives to move their products. Store 2 Door will provide substantial

benefits to their suppliers such as giving hand cash, sponsoring shelves, trade

discounts, credits, etc. Thus, future competitors will get little/no scope for

differentiation.

12.3. Marketing Mix

12.3.1. Product:

Our products are fresh and chemical free fruits and vegetables that are directly collected from farmers.

Day by day people are becoming more interested about their food items and where it is growing up?

Preferring organic vegetables will definitely reduce the intake of chemicals. But despite that the

homemakers will need to wash them thoroughly to eat clean. Organic vegetables don't mean clean

vegetables so washing them should be a routine task. People often mistake while buying vegetables in

organic marts. They think the organic tag or label on the foods mean that they are totally free from

contamination which is not true. We provide all kinds of seasonal fruits and vegetables that you are really

want to buy. Our fruits and vegetables include:

There are lots of retail stores of green vegetables and fruits in the market but not any single store is

delivering hundred percent fresh and organic vegetables. So far we know, in case of chemical free or

organic fruits and vegetables we are the market leader at this moment. Organic foods are foods that are

produced using methods that do not involve modern synthetic inputs such as synthetic pesticides and

chemical fertilizers. Organic foods are not processed using irradiation, industrial solvents, or chemical

food additives. Now-a-days people are more conscious about their health. So they are no longer stay with

poisoned vegetables that are really harmful for their health. Veggies are so beautiful and span the colors

of the rainbow. These vibrant colors indicate they're chock full of photochemical, those disease-

preventing chemicals found in all plant foods. The varying colors signify varying nutrients which is why

it's important to include all the colors of the vegetable rainbow to cover the innumerable health benefits

veggies bring to the table. Consumers interested in organic food would look for non-chemically treated,

non-use of unapproved pesticides, fresh or minimally processed food. They mostly had to buy directly

from grower. Scientific literatures have not found that organic food is any safer or healthier than

conventional foods. There continues to be widespread public belief in arguments that organic food is

significantly safer for consumption than food grown conventionally, based mainly on anecdotal evidence

and testimonials rather than scientific evidence; this belief has fueled increased demand for organic food

despite higher prices. So, high price in case of organic fruits and vegetables is not a big deal to the today’s

consumers.

12.3.2. Place:

Distribution is one of the classic “4 Ps” of marketing. It’s a key element in the entire marketing strategy,

it helps to expand reach and grow revenue. Actually it is a path through which goods and services flow in

one direction (from vendor to the consumer), and the payments generated by them that flow in the

opposite direction. A distribution channel can be as short as being direct from the vendor to the consumer

or may include several interconnected intermediaries such as wholesalers, distributors, agents, retailers.

Each intermediary receives the item at one pricing point and moves it to the next higher pricing point

until it reaches the final buyer.

We are “Store to Door’ a solid home delivery service. Our distribution channel is 2, means we collect all

of our vegetables from farmers directly and deliver it to the final consumer. Our main collection point is

“Gazipur Chaurasta” a well known and reputed vegetables market in Bangladesh. Considered to our

demand we collect vegetables every day morning from here. To bring our vegetables and supply it to the

customers we use two pick up ban which go to the Gazipur around 7.00am and come back with

vegetables within 10.00am. After 10.00am we start our main distribution to the ultimate consumer at our

selected area in Dhaka city. Our selected areas are Gulshan, Baridhara-Bashundhara, Uttara, Banani,

Dhanmondi and Lalmatia.For Uttara, Baridhara and Gulshan we have one ban and for rest of the areas

one ban. We provide our service up to 6.00pm. To provide a good service and create an effective

distribution channel we offer different types of order process like if our customers want to post their order

over the phone then we just make a product list and deliver the product in the next day morning. Besides,

if our customers want to make the order via mail it is also possible. Our head office is located in Middle

Badda, so customers can make their order by physically come to our office.

We have no other intermediaries in the whole process. Our distribution channel is also very

flexible. If there is not an effective distribution channel then good products have no meaning

actually. Therefore, the success of each and every service type business is completely depending

on the proper distribution channel.

12.3.4. Price:

Vegetables

Sl Name Price1 Basil 222 Brinjal 253 Carrot 604 Cucumber 305 Lemon 156 Gourd 287 Lady’s finger 388 Potato 309 Pumpkin 2810 Red amaranth (per bundle) 0611 Snake gourd 3512 Patol 331314

Balsam appleTomato

4365

12.3.5. Promotion:

The goal of a Store 2 Door’s promotional efforts is to communicate with target markets. There

are four major tools available for developing promotional mix: Advertising, Personal Selling,

Public Relations, and Sales Promotions.

But among these four, Store 2 Door is going focus mainly on Advertising and Sales Promotions.

Our marketing goal for the launching campaign of Store 2 Door in Bangladesh is to create strong

brand awareness and Brand equity to our potential customers as well as to our targeted customers

through different communication tools. For the brand Store 2 Door target markets being exposed

to a new brand is an important step for the product life cycle. It is actually the first step because

only after brand awareness consumers can have aided brand recall, unaided brand recall, brand

recognition, and then finally, after people become repeat users, brand loyalty. Building a rock

solid brand is perhaps the best long term marketing strategy. We want to create awareness of the

Store 2 Door brand through different advertising and promotional methods.

Through the marketing campaign we want to create customers emotional attachment to the Store

2 Door Company and its products. Branding efforts create a feeling of involvement, a sense of

higher quality and creates a soft corner in our consumers mind that will make them believe that

they are having pure and preservative free fruits and vegetables that surround the brand name,

mark, or symbol. Our primary goal is that after the campaign people will recognize the Store 2

Door brand. This does not necessarily mean they prefer the brand (brand preference), attach a

high value to, or associate any superior attributes to the brand, it just means they recognize Store

2 Door brand and can identify it under different conditions. We will use different advertising

tools like print advertising, electronic advertising, online advertising etc to build brand

awareness.

Now we’ll be going through the tools of promotional mix on which Store 2 Door is mainly going

to focus and those are; Advertising and Sales Promotions.

Advertising

Store 2 Door will be using Advertising as a way to bring attention to your product or business by

publishing or broadcasting a message to the public through various media. Our choices of media

include print media like newspapers, magazines, and leaflet.

The advantages of using Newspaper as print vehicle is that it is flexible; timely; covers local

markets well; believable (because people read newspapers to get information) and it is very

important for us to make our customers believe on us as we are offering preservative and

chemical free fruits and vegetables. It is relatively inexpensive; we can use color, coupons, or

inserts.

Our first campaign through newspaper would be an insert what would be like an extra page that

would look like a greeting card. On that it would be written that “From now on you would be

chemical free and don’t have to go to market for buying your Fresh and Chemical free

vegetables. We’ll be bringing those to your doorstep.”

13. The Financial Plan

Pro Forma Income Statement for the Year Ended December 31 of 2013, 2014 & 2015

 

Details: 2013 2014 2015 Revenue:       Sales 4,800,000 5,636,860 7,200,546 Total Revenue 4,800,000 5,636,860 7,200,546Expenses:       Delivery Van (2) 1,400,000 0 0 Salaries and Allowance 1,100,000 1,200,000 1,300,000 Office Rent & Advance for office 740,000 240,000 240,000 Newspaper & Leaflet 824,000 964,000 1,064,000 Website & Domain Rent 9,000 3,000 3,000 Online Promotion 350,000 385,000 400,000 Delivery Expense( CNG fuel) 275,000 300,000 325,000 Telephone and Mobile Bill 120,000 150,800 180,500 Utility Bill(Electricity, water) 28,000 29,800 33,750 Repair and Maintenance 50,000 60,000 70,000 Company Registration fees 11,000 0 0 Interest of Bank 320,000 320,000 320,000Depreciation 80,000 80,000 80,000 Office Furniture & Decoration 300,000 0 0 Total Expenses 5,607,000 3,732,600 4,016,250 Net Income (Tk.) -807,000 1,904,260 3,184,296

13.1. Cost

The total initial budget of the business is 5 million 60% of the budget is equity and the

rest 40% is debt financing. For the business we are going to take bank loan from the Sonali Bank

at a interest rate of 15%. We are going to pay annually the interest.Location cost for the shop in

advance is 500,000 Tk and the monthly rent will be 20,000 Tk. We are going to buy two pickup

van for the purpose of delivery and collection of vegetables.

13.2. Fixed Cost

The fixed costs associated with the business are

1. Salaries and Allowance

2. Delivery Van 3. Office Furniture & Decoration4. Office Rent 5. Company Registration fees 6. Interest on loan 7. Depreciation

13.3. Variable Cost

The variable costs associated with the business are:

Newspaper & Leaflet

1. Website & Domain Rent

2. Online Promotion

3. Telephone and Mobile Bill

4. Delivery Expense( CNG fuel)

5. Utility Bill (Electricity, water)

6. Repair and Maintenance

13.4. Revenue

As the company had so many fixed cost in the first year so the company will face loss in

the first year but from the second year the company will earn profit.

13.5. Break Even Analysis

Break Even Analysis  

  2013 2014 2015Fixed Cost      

Salaries and Allowance 1,100,000 1,200,000 1,300,000

Delivery Van 1,400,000 0 0

Office Furniture & Decoration 300,000 0 0

Office Rent 240,000 240,000 240,000

Company Registration fees 11,300 0 0 

Interest on loan 320,000 320,000 320,000

Depreciation 80,000 80,000 80,000

Total Fixed Cost 3,451,300 1,840,000 1,940,000

Variable Cost       Newspaper & Leaflet 824,000 964,000 1,064,000 Website & Domain Rent 9,000 3,000 3,000 Online Promotion 350,000 385,000 400,000 Telephone and Mobile Bill 120,000 150,800 180,500

Delivery Expense( CNG fuel) 275,000 300,000 325,000

Utility Bill (Electricity, water) 28,000 29,800 33,750

Repair and Maintenance 50,000 60,000 70,000

Total Variable Cost 1,656,000 1,892,600 2,076,250

Sales 4,800,000 5,636,860 7,200,546

Units Sold 2000 3000 4500

Sales Per Unit 2400 1878.95 1600.12

Variable Cost Per Unit 828.00 630.87 461.39 Break-Even Point in Units Sold 2,195 1,474 1,704

2013 2014 20150

5001,0001,5002,0002,5003,0003,5004,0004,5005,000

Break Even In Units Sold

Break-Even Point in Units Sold Units Sold

Un

its

From the analysis chart it can the company will not be able to gain break even in the first

year but in the first quarter of the second year the company will reach the breakeven.

14. Conclusion

In concluding remark we can say that we tried very cordially to make this business plan an

interactive and real one. All of our sources are very authentic. As we written earlier that we are

an organization who delivered the customers fresh vegetables and make their life more safe and

poison free. That is why; our business motto is “Through organic vegetables lead a better life”.

We have three types of goals like short, mid and long term that we mentioned earlier very

precisely. We have also included our future and backup plan in this report so that in any types of

shortfalls we can overcome it very soon. Before starting our project, we have conducted an

effective survey that gave us the market condition and whether this business will be feasible or

not. At last, it is very clear that this is a very lucrative sector in today’s business world because

we save your money and time.

Appendix

Survey Questioner Graph

Gender

Male

Female

Husband Wife Child Others05

101520253035404550

Who is responsible for the grocery shopping in your family?

13%

40%

47%

How frequently do you shop for fruits & vegetables?

Everyday

Weekly

Two or three days a week

More than three days a week

1 2 3 4 and above0

10

20

30

40

50

60

70

How many members are there in your family?

47%

37%

13%

3%Are you willing to pay a premium price for the higher quality of our

products?

Yes, I can pay

Yes, but It has to be rea-sonable

Yes, at times but not regular

No, I simply cannot afford it

Home Delivery Retail Store Others0

102030405060

Which to you is the most preferable form of purchase?

22%

21%

19%

17%

9%

3% 5%5%

What are the attributes you look in to while purchasing fruit and vegetables?

Hygiene

Freshness

Price

Quality

Seasonal Availability

Taste

Color (Ripe/Raw)

Vicinity or Origin

7%7%

17%

53%

17%

Are you currently satisfied with the quality of fruits & vegetables sold in the bazaar and department store?

Yes, I am fully satisfied Yes , but there are small doubts

Neutral No, but there are no other options to purchase

No, there are all contam-inated and I have re-duced my consumption

87%

10% 3%Are you in favor of organic food (fruits & vegetables)?

Yes, I am completely pleased

Yes, but some amount of fertil-izers required

No, there needs to be proper cul-tivation through fertilizers and other methods

Providing qualitative supply of seasonal local fruits & vegetables

Providing fresh supply of off-season local fruits & vegetables

Providing quality unique foreign fruits & vegetables

0 10 20 30 40 50 60 70 80

What do you expect from our product line?

Bibliography