chill out beverage

8/7/2019 Chill Out Beverage

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ASSIGNMENT OF ELECTRONIC BUSINESS

New Business Plan

CHILLOUT BEVERAGE STORE

(www.chillbevstore.com)

SUBMITTED TO:-

Res. Shweta Maam

Faculty IPM Meerut SUBMITTED BY:

Umesh Kr Gupta

Vijeta Bharti

Vinod Yadav

Vishal kr. Singh

Vivek Ranajan

Vikash Kr Singh

Vivekanand Rai (G.L.)



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ACKNOWLEDGEMENT

We take immense pleasure in thanking Resp. Shweta Ma¶am for having

permitted us to carry out this new business plan.

We wish to express our deep sense of gratitude to our internal integration of our

group members for Internal Guide, for able guidance and useful suggestions,

which helped us in completing the business plan, in time.

Needless to mention that Resp. Shweta Ma¶am, who had been a source of

inspiration and for her timely guidance in the conduct of our business plan.

Words are inadequate in offering our thanks to all the useful resources from

which we have been acrossed, and the encouragement and cooperation in

carrying out the business plan.



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Contents

Executive Summary ............................................................................................................................................ 4

Business Description .......................................................................................................................................... 6

Industry overview- ......................................................................................................................................... 6

Company Description- .................................................................................................................................... 6

History and current status- ............................................................................................................................. 6

Goals and objectives- ..................................................................................................................................... 7

Critical success factors- .................................................................................................................................. 7

Company ownership- ..................................................................................................................................... 7

Exit strategy- .................................................................................................................................................. 7

Products / Services- ........................................................................................................................................... 8

UNIQUE FEATURES ......................................................................................................................................... 9

RESEARCH AND DEVELOPMENT ..................................................................................................................... 9

PRODUCTION ................................................................................................................................................. 9

Industry & Market Analysis .............................................................................................................................. 10

Soft drinks Industry overview ....................................................................................................................... 14

Competitors analysis ................................................................................................................................... 15

Marketing Strategies and Sales ........................................................................................................................ 18

Market Segmentation, Targeting & Positioning strategy ................................................................................... 20

Targeting ...................................................................................................................................................... 21

Positioning ................................................................................................................................................... 21

Product/Service Strategy.................................................................................................................................. 22

Pricing Strategy.......................................................................................................................................... 23

Distribution Channel ................................................................................................................................. 23

Promotional Strategy ....................................................................................................................................... 25

Sales Strategy and sales forecast........................................................................................................ 27

Development Strategy ..................................................................................................................................... 28

Management- .................................................................................................................................................. 29

Operation Strategy ........................................................................................................................................... 30

Inventory ..................................................................................................................................................... 33

Production ................................................................................................................................................... 34

SOURCES OF FUND OR FINANCE....................................................................................................................... 35

Start-up ........................................................................................................................................................ 36



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Executive Summary

Chill-out beverage is an click and mortar type of business having a

vast selection of liquor, spirits ,wine, and fine cigars , cold drinks aswell as a wide assortment of rare and hard to find liquor and smoking

accessories. As people use to spend a huge amount of money on

liquor, they will be ready to spend even more if they get it at the

place and time they want. Hence we¶ll charge a bit more as delivery

charge like 10% on the purchase of less than 1000, 8% on the

purchase of 1000-1500, on the order of 1500-2000 we¶ll charge 5%,and on the order of 2000-2500 the charge will be 3% of the order and

the order of more than 2500 we¶ll provide free delivery.

We will carry-on our business in Delhi and New Delhi region.

We¶ll provide within Half an hour of the order, and we¶ll also contact

to various guest houses and event Management companies and will

have contract to purchase our products.

Our business will be Click and Mortar hence we¶ll take order online

and on phone, Apart from this we¶ll contact various companies who

wish to advertise their product online once our store will start running

at a good pace. The initial investment will be from the partners

(Group Members) on equal proportion and the profit also will be

distributed accordingly.

The Beverages Industry is as on boom and the youth of today don¶t

have time to visit personally at shops but however they manage but

when they¶ll get the online purchasing facility they¶ll take advantage



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of that and the use of internet is also becoming popular day by day

hence this is golden opportunity for Chill Out Beverages.

As in the market there no other existing player Chill out Beverage

Store found that the opportunity is more than risk as it is click andmortar. Rs. 2crore is contributed by the seven partner equally. Someof our friend is going to invest in our business. So we will raise Rs

3crore through personal finance.



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Business Description

Industry overview- On a nationwide basis, there are more than

5,000 stores that specialize in the sale of liquor, wine, beer, and

other spirits to the general public. On an annual basis, these

businesses aggregate generate more than $50 billion of revenue

and employ more than 200,000 people. This is a mature industry

and the future expected growth rate of the business is expected

to mirror that of the general economy.

Company Description- Chill-Out Beverage Store is a new business

and is unique of its type in Delhi. The company is owned by Mr.

Vivekanand Rai and He is Director of the company. Chill-Out

Beverage Store is in business of Wines, Beers and other

beverage products online. Chill-Out Beverage Store deliver the

products to the consumer within half an hour of the order.

History and current status- The current economy has remained

difficult over the past few years. However, Liquor Stores and

drinking establishments tend to fair well during difficult economic

climates. As such, the Liquor Store will be able to remain

profitable and cash flow positive in any economic climate. On a

nationwide basis, there are more than 5,000 stores that

specialize in the sale of liquor, wine, beer, and other spirits to

the general public. On an annual basis, these businesses

aggregate generate more than $50 billion of revenue and employ

more than 200,000 people. This is a mature industry and the



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future expected growth rate of the business is expected to mirror

that of the general economy.

Goals and objectives- We at Chill-Out Beverage Store have made it

our mission to supply the highest quality craft beer and

Beverages etc. to the widest possible audience. To that end, we

have compiled the largest and most varied selection of beers in

the world. In both our Traditional and online store, you can

select from more than 80 distinct styles of beer crafted by the

finest breweries around the globe. We have a selection of

thousands of beers from every state in the Union and every

continent on the map. We take pride in providing each of our

customers with their own unique beer experience. Cheers!

Critical success factors- Critical success factor of Chill-Out Beverage

Store is the delivery time which is just Half an Hour of order in

all over Delhi and New Delhi region and the time management

and punctuality of our delivery time. The variety at Chill-Out

Beverage Store also adds to the success of the company.

Company ownership- Chill-Out Beverage Store is owned by Mr.

Vivekanand Rai.

Exit strategy- As we at Chill-Out Beverage Store are confident

enough that we¶ll not only be able to survive in the market but

also will be doing a good business and hence we don¶t have any

exit strategy as such.



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Products / Services-

Products

COLD DRINKS ALCOHOL SOFT DRINKS

Pepsi

7UP

Aquafina

Gatorade

Mountain Dew

Nimbooz

Slice

Tropicana

Tropicana Twister

Mirinda

Beer (all types of

Lager and Ale)

Mead

Sake

Wine

Cider

Perry

Alco pops

Wine Coolers

Champagne (andother sparkling

wines)

Fortified WineBrandy (andCognac)

Rum

Tequila / Mescal

Vodka

Whiskey / Whisky(including Scotch,

Barq¶s Root Beer

Mountain Dew

Diet Coke

Diet Pesi

Sunkist

Pepsi

Big Red

Sierra-Mist

Red Mountain Dew

Coke



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Gin

Aquavit

Pulque

Grappa

Schnapps

Absinthe

UNIQUE

FEATURE

SDelivery on time is our unique feature. We can deliver our producte in

30 minutes in anywhere in Delhi and we can assure our customers for

good quality products

RESEARCH AND DEVELOPMENT

WE do not manufacture products therefore R&D Is not very important

.but we are trying to improve our logistic and supply chain

management that we became able to reduce our cost and offer

products at lower cost.

PRODUCTION

Production is not applicable in our business. We outsource products

we do not manufacture products.



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CHILL-OUT BEVER AGE

Industry &Market Analysis



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* Indian Made Foreign Liquor (IMFL)

Alcoholic beverage industry is a well developed - Rs 8,200 crores (US

$ 1907 million) industry in India Major players in the alcoholic

beverages market - United Breweries (UB) Group (Bangalore),

Shaw Wallace (Calcutta), Jagajit Industries (Kapurthala, Punjab),

Mohan Meakins (Solan, Himachal Pradesh), Associated Breweries

& Distilleries (Mumbai). Per capita beer consumption in India is 0.5

litres; as against 20 litres in China, 100 litres each in US A & Germany,

annually.



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BEER: MARKET

y A 70 million cases market

y Market growing at 10-12 % per annum

y South and west zones account for bulk (> 75 %) of this market y Major beer consuming centers - Maharashtra (Mumbai)

y Karnataka (Bangalore); Tamilnadu (Chennai)

y Minimum economic size : 5000 kilo litres; 15000 kilo liters for

NRI proposals

y Around 40 units in organized sector, mostly regional players

y 4 large breweries have 84% of the market

y Major beer brands (manufacturers) - King Fisher, Kalyani Black

Label (UB Group), Golden Eagle (Mohan Meakins), Haywards

(Shaw Wallace), London Pilsner ( Associated Breweries and

Distilleries)

y Foreign brands - Stroh¶s, Fosters

y Beer packed in 650,750 & 1000 ml glass bottles; usage of (330

ml) cans minimal

y Preference in the Indian market for strong beer

y Promotions and sponsorships (sports, musical events) to

promote brands

y States¶ prohibition policies govern trade sales for beer

y Multi layer trade channel structure

y Beer sold through the same outlets as IMFL

y Institutional sales of beer to star hotels, large restaurants, bars/

pubs



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y Import duty on beer - 100 % basic; 10 % surcharge; S AD : 4

%

y Sales taxes - 45%, 5% cess (State subject).

y Excise Duty - Rs. 4/ Bulk liter in Karnataka (State subject)

LIQUOR: MARKET

y Market : 58 million cases

y Past growth 15 % C AGR per annum

y Brown spirits - particularly whisky, rum & brandy account for

over 75 % of this market y South and North share 60% of market

y Industry in the organized sector - an industrial license is required

to start manufacture

y Major brands (manufacturers) : Signature, Blue Riband (UB

Group), Aristocrat (Jagajit Industries), Smirnoff, Gilbeys Green

Label, Malibu, A

rcher¶s Peach Schnapps(International DistilleriesIndia), Passport (Seagram¶s), V AT 69, Black & White, Black Dog

(United Distillers India)

y Preference for brown spirits (molasses flavor) in Indian market

y Liquor packed in 180, 375, 500, 750 and 1000 ML bottles - glass

and plastic bottles. 180 ML and 750 ML are fast moving

y Promotions, sponsorships, surrogate advertising (sometimes)done to build brands

y O pen market : Maharashtra, J&K, Goa, Orissa

y Auction market : Uttar Pradesh, Rajasthan, Madhya Pradesh,

Bihar, Punjab, Chandigarh



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y Government Controlled : Tamilnadu, Karnataka, Delhi, Kerala

y Prohibition States : Gujarat, Manipur, Mizoram, Nagaland

y There are over 22000 liquor retail outlets spread across the

country

y Sales tax (ad valorem), Bottling Fee, Liter Fee, Vend Fee, Gallon

age Fee, Privilege Fee, Import/ export Pass duty etc. are some of

them. In Karnataka some of the taxes levied are : Excise Duty :

Liquor from spirits - Rs. 45/- bulk liter; Premium Malt Whisky -

Rs. 60/- bulk/ liter; Liter Fee - Rs. 20/- bulk liter; Sales tax :

60%; cess 5%

y Import duty on whisky, rum, gin & vodka, liqueur - 230 % +

S AD : 4 %

Soft drinks Industry overview

Global sales of soft drinks exceed 327 billion liters and are valued at

more than US $393 billion annually. North America, Europe and Japan

are the most mature markets for global soft drinks. Coco Cola and PepsiCo Inc has significant control over the global soft drinks market

and both have similar business organizations and processes

worldwide. Soft drink consumption has a market share of 46.8%

within the non-alcoholic drink industry; clearly, the soft drink industry

is lucrative with a potential for high profits. Coca-Cola is king of the

soft drink-empire and boasts a global market share of around 50%,followed by PepsiCo at about 21%, and Cadbury Schweppes at 7%.´

Aside from these major players, smaller companies such as Cott

Corporation and National Beverage Company make up the remaining

market share.



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The carbonates category was valued at INR 79,360.7m ($1,923.1m)

in 2008, representing a C AGR of 1.1% since 2003. By the end of

2013, the carbonates category will be worth INR 85,212.2m

($2,064.9m), with an expected C AGR of 1.4% between 2008 and

2013.

The ease of entry and exit does not cause competitive pressure on the

major soft drink companies. It would be very difficult for a new

company to enter this industry because they would not be able to

compete with the established brand names, distribution channels, and

high capital investment. Likewise, leaving this industry would be

difficult with the significant loss of money from the fixed costs,

binding contracts with distribution channels, and advertisements used

to create the strong brand images.

Competitors analysis

S U BHAS H LIQUORS PVT LTD

Products/Services : Highland Prince, XXX Fighter Rum, Party Vodka,

Alcohol Beverages, Green Berry, Alcohol Beverages Alcohol

Beverages, Alcohol - Beverage, Alcohol - Spirits, spirits alcohol, wine,

vodka, Liquor, Scotch Blended Whisky, Neutral Alcohol, Spirits,

Alcoholic Beverage, Brandy.

Tilaknagar industries ltd Products/Services : Senate Royale Whisky, Mansion House Whisky,

Senate Whisky, Shot Whisky, Classic Whisky, Royal Choice Whisky,

Hott Silk Whisky, Castle Club Whisky, Brandy, Courrier Napoleon

Brandy, Savoy Club Rum, Vodka.



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Visionary Brand Management (P) Ltd

Products/Services: Whisky, Rum, Brandy, Vodka, Alcoholic Beverage,

Liquor, Alcohol.

Radico Khaitan Limited

Products/Services: Alcoholic Beverages, Whisky, Brandy, Rum, Vodka.

Blossom I ndustries Limited

Products/Services: Beer from malt, alcohol strengths ranging from 5

to 8% v/v, whisky, rum, gin, brandy, vodka.

Optimum Food & Beverages Pvt. Ltd.

Products/Services: Soft Drinks, Soft Drink Concentrates, Mango Drink,

Club Soda, Packaged Drinking Water.

Asianlak Health Foods Ltd.

Products/Services: Fruit Drinks, Carbonated Soft Drinks, Bottled

Water.

Vi pul Kumar Trading Co

Engaged in supplying and exporting drinks such as soft drinks,

nutritious soft drinks, flavored soft drinks, tasty fruit juice and health

fruit drinks.



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Technometalics Farma

Deals in exporting and manufacturing of alcoholic beverages such as

aromatic alcoholic beverages, wines, aloe Vera drinks, aloe Vera

health drinks, aloe Vera refreshing health drinks and red wines.

These are few of the companies in India that offer the alcoholic and

soft drinks beverages in the market but one thing that we have

advantages over these companies is that all these companies have

specialized in one type of beverages whether it is alcoholic or non

alcoholic beverages. And we are providing both of these together so

there will be a great potential for our company to get a bigger slice of cake in this competitive market.

The major triggers of e-commerce in India were:

Saves time and efforts

Convenience of shopping at home

Wide variety / range of products are available

Good discounts / lower prices

Get detailed information of the product Y ou can compare various models / brands

And some of the major barriers at present were:

Not sure of product quality

Cannot bargain/Negotiate

Not sure of security of transactions / Credit card misuse

Need to touch and feel the product

Significant discounts are not there Have to wait for delivery

So by utilizing the triggers of e-commerce and reducing the barriers

of e-commerce we can run our business successfully. Before starting



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our business we are working on those barriers so that it will become

easy for we people to carry on our business. Since we are delivering

the branded products so it already eliminates the barriers related to

product quality. Secondly we start with aim to get the faith of people

on our business so at first we try to cover a small area by which

people have not wait too much for their orders. And there is also no

need to touch and feel the beverages products like clothes, cars,

electronics items etc.

Marketing Strategies and Sales

Marketing strategy is a process that can allow an organization to

concentrate its limited resources on the greatest opportunities to

increase sales and achieve a sustainable competitive advantage where

Competitive advantage is the strategic advantage one business entity

has over its rival entities within its competitive industry. Achieving

competitive advantage strengthens and positions a business better

within the business environment. Marketing strategy involves careful

scanning of the internal and external environments. Internal

environmental factors include the marketing mix, plus performance

analysis and strategic constraints. External environmental factors

include customer analysis, competitor analysis, target market

analysis, as well as evaluation of any elements of the technological,

economic, cultural or political/legal environment likely to impact

success.



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Once a thorough environmental scan is complete, a strategic plan can

be constructed to identify business alternatives, establish challenging

goals, determine the optimal marketing mix to attain these goals, and

detail implementation. A final step in developing a marketing strategy

is to create a plan to monitor progress and a set of contingencies if

problems arise in the implementation of the plan.

Strategies based on market dominance - In this scheme, firms are

classified based on their market share or dominance of an industry.

Typically there are four types of market dominance strategies:

1. Leader²through chill out beverages have the great opportunity to

be the market leader as non of its competitors have this great

mix of product which we provided i.e. it¶s all one stop solution for

beverages.

2. Challenger²chill out beverages does not follow that strategy as

we want to be best in our field since we not only look for B2B

business but also the B2C business i.e. with home delivery

facility even if the minimal order quantity is demanded from the

customers. So we give challenge to other to follow the challenger

strategies.

3. Follower²N A

4. Nichesas our business is basically focus on small area at its very

early stage. So chill out beverages focus on particular segment

of customers besides the B2B customers.



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Porter generic strategies - strategy have the dimensions of

strategic scope and strategic strength. Strategic scope refers to

the market penetration while strategic strength refers to the

firm¶s sustainable competitive advantage.

1. Product differentiation²it¶s quite difficult to have a

product differentiation strategy for our company as we are

not manufacturing the beverages.

2. Cost leadershi p²this could be our edge over other

business as we are not going to have any intermediaries for

our B2B and B2C customers. And we directly procuring the

beverages from manufacturer and supplying to our

customers. So we can surpass more margins to our B2B

customers and profits to our B2C customer with ease of

shopping and ordering facility from their home and own

working places.

3. Value creation²first thing concerns with the value in the

mind of customers is price. So we gives more margin to our

customers it leads to value creation. Besides that facility for

the ease of ordering, payment, delivery time, and home

delivery is all helpful for our business to create value for our

customers.

Market Segmentation, Targeting & Positioning strategy

Market segmentation is the division of a market into different groups

of customers with distinctly similar needs and product/service

requirements. Or to put it another way, market segmentation is the

division of a mass market into identi¿able and distinct groups or



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segments, each of which have common characteristics and needs and

display similar responses to marketing actions. The purpose of market

segmentation is to leverage scarce resources; in other words, to

ensure that the elements of the marketing mix, price, distribution,

products and promotion, are designed to meet particular needs of

different customer groups.

Targeting

What is target? This is the real goal/objective in market that marketer

want to reach.

What percent of the population uses the product at all?

What percent uses your brand?

How does that compare to competing brands?

What is the demographic profile of the product category?

Which media reach the users of this category?

Positioning

Positioning is an essential component -- and skill - in good marketing.

Perceptual maps are used to determine the position of a product,

firm, person, service or idea. Positioning maps or perceptual maps

can be simple, yet very effective marketing tools. It¶s all about getting

a favorable image in the mind of customer compare to the nearest

competing product.

As we have already mentioned previously the consumption pattern of

beverages of the Indian consumers. So briefly we have a look on the

customers of our business.



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A

Product/Service Strategy

As it was already mentioned the product and services which chill out

beverages offers to the customers. In the near future we are

concentrating basically on these two types of beverages. However our

company also plans to extend their product line by including other

Chill Out Beverages

B2B

customer

B2Ccustomer

Licensed Retailers

Hotels & Restaurants

Pubs & Bars

Parties & Ceremonies

Alcoholic Beverages

20-35 yrs

wor

king

class

35-50 yrs class people

Soft Drinks

All age group people

consume soft drink

beverages. So targeting

at the family of middle

class and above



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beverages of alcoholic and non- alcoholic. Mainly plans to introduce

the fruit, milk, coffee, tea and other herbal juices.

This is our long term strategy in order to me the biggest market

player with huge presence physically as well as most recognized

online player in that industry. A list of our product and services is

mentioned in this plan.

Pricing Strategy

Since its nothing like charging a skimming price in this industry as

people are well aware of the prices of soft drinks but not very much of alcoholic beverages. Since we are offering these products to our

customer without any intermediaries so it¶s a great edge for our

business to provide the products at their own place at the same

market price and we also make good money by that i.e. the margin

we give to the other intermediaries. We can also provide the products

at lower price than market for few products.O

ne thing is that for B2Bcustomers we work like that but for B2C customer mainly are of upper

class which urge for the home delivery. So they are also ready to give

the extra charge for that as they are basically business class people

with very busy time schedule, so it is not easy for them to go market

and purchase these all things.

Distribution Channel

From the figure given below clearly shows how we are going to

distribute our products to our customers. We are in direct contact

with the beverages manufacturer for supply of their products. Since



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we are more concentrating towards our B2C customers so we apply

the rule of attack from both and try to get more in touch with the

customer. As a customer can directly purchase the products by

making their order online directly to chill out beverages without any

difficulty. We have our employees for home delivery of ordered

products throughout the possible regions. We have also four

warehouses to cater the bigger picture of the market with quick

supply to their final destinations. Since our SCM and e-SCM both are

so strong which provide the extreme support for the exchange of

goods and services with information.



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Promotional Strategy

As the Indian market is well accepted the beverages whether it is

alcoholic and non alcoholic. People are well aware of the different

brands available in the market. So it is not necessary to go with the

heavy promotion of the products and services that we offer. Basically

promotion is all about to inform, persuade, remind and reinforcing the

customer to purchase our product.

Flow of goods and services

Chill out

Beverages

Beverages

Manufacturer



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They different ways of promotional strategy is-

Advertising²in that case we have to only advertise our website so

that more and more people access to our website. Besides a part

of Google Ad words we are also advertise our products and

websites on the social networking sites this gives us the huge

reorganization among our targeted customers. Other facility is

above the line and below the line promotion which is done by the

manufacturer. So there is advantage because we have not to

spend too much for that.

Sales promotionwe offer the customers these beverages products

at very beneficial and competitive price so that they go for our

business again and again. We have these sales promotions for

both of our B2B and B2C customers.

Personal sellingthis promotion strategy is mainly focus on the

B2B customers of our business so that we get regular business

from them.



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Sales Strategy and sales forecast

³Success never comes easily´ in any business as e-business growing

at much better pace so we can hope for better sales in our business

as the consumers of the alcoholic and non alcoholic beverages are

growing.

We are aiming at an average of one crore sales per month and huge

amount of this comes from our B2B customers nearly 70-80% of our

business. For better sales strategy we need a quality sales force so we

recruit quality sales person for accomplishment of that task which

contact with the B2B customers for the institutional sales. We provide

them the facility of transportation and develop the customer

relationship management to ease the businesses with our customer.



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Development Strategy

Cost Leadership: Cost leadership is the strategy that focus on

making the organization Chill-Out Beverage Store more competitive

our product and more cheaply than competitors can. The logic behindthis strategy is that by providing product more cheaply than

competitors, we offer the product to customers at lower price than

competitors and there by hope to increase market share.

Differentiation Strategy: Successful differentiation allows the

business to charge premium price to the customers, leading to

average profit.

Focus: It is the strategy that emphasis our organization Chill-Out

Beverage Store more competitive by targeting a specific market,

product line or buyers group. We can use low cost approach, but only

for a narrow target market. The logic behind of this approach is that

our organization Chill-Out Beverage Store that limit our attention to

one entire market.

Development Timeline

To achieve the breakeven point in 6 months.

To become the market leader in 3 years.

Delight each and every customer.

Diversify the business in other cities.

Development Expenses

Depends on future growth and development.



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Operation Strategy

Operations strategy is the collective concrete actions chosen,

mandated, or stimulated by corporate strategy. It is, of course,

implemented within the operations function. This operations strategybinds the various operations decisions and actions into a cohesive

consistent response to competitive forces by linking firm policies,

programs, systems, and actions into a systematic response to the

competitive priorities chosen and communicated by the corporate or

business strategy. In simpler terms, the operations strategy specifies

how the firm will employ its operations capabilities to support thebusiness strategy.

At head office we have one person who maintains the order details

from the website and verify the nearby address and payment details.

We are using the software to maintaining the detail, and as the

address mentioned by the consumer it would directly go to the nearby

warehouse.

It is very important for our organization to maintain the supply chain

and value chain by providing the services on time. In order to

maintain the inventory we have one store keeper in the ware house

that maintains the record of inventory and places the order

accordingly to the suppliers. He checks the consignments which has

arrived from the suppliers or distributers and maintain the record and

deliver to the head office, if there is any damage or problem he

reports this directly to the head office, at the same point in time it is

his task to keep the record of total product which has been delivered



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to the consumer after verifying the address and payment detains from

the head office. We have three employee at each ware house who

delivered the product at home, employees are provided with the

motorbike for the convenience and the fast delivery. Service is

available 24X7.

LOCATION

Location is critical to provide the product on time or within the time in

order to generate planned sales volumes. The business is highly

territorial. We have mapped the location of every retail liquor store inNew Delhi, and we have been working with executives of UB Group,

to determine the best possible location for the warehouse. Four target

areas were identified: the newly developing West Delhi, South Delhi,

East Delhi & North Delhi. Among these target areas, South Delhi has

been identified as our most promising business opportunity. We would

take a small room on rent rather than going for a big warehouse, thatroom is equipped with all different verity of wine in fridge, with ice

cubes.

SUPPLIERS

Radico Khaitan Limited

Mathura RoadPlot No. J-1, Block B-1, Mohan Co-op

Industrial Area, Mathura Road, New Dekhi, Delhi.

Ph. No.-01126975334



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Jagatjit Industries Limited

Nehru Place

91, 4th Floor, Bhandari House, Nehru

Place - Delhi

Ph No.: 01126432641

Aspri Sprits Pvt Ltd

Okhla Industrial Area

T-11, Okhla Industrial Area, Phase-2, Delhi

Ph. No.-01141633982

Ram Hiya Wine and Beer Shop

Karol Bagh

2228-28, Haridhian Singh Road, Karol Bagh Delhi

Ph No.- 01128750271

Melco Wines Pvt. Ltd.

Connaught Place

2nd Floor, Plaza Cinema Building

Connaught Place, Delhi

Ph. No.-01123317897

Shaw Wallace and Company Limited

K.G. Marg

806, Ansal Bhavan, 16, K G Marg Delhi

Ph. No.- 01123714216



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Inventory

We manage a variety of complex liquor accounts, each with its own

particular needs. Our Warehouse Management System (WMS) allows

us to manage spirits inventory by SKU number and FIFO requirementswhile providing CBP with the information they require.

We have various tools to handle products with utmost care and our

wireless inventory control system provides us with on demand

accurate information. Your Inventory information, including arriving

products, items on hand, orders in process as well as previously

shipped goods along with the corresponding POD¶s are available 24

hours a day.

We count our beginning inventory. This includes all bottles and kegs

in storage, as well as damaged bottles. Enter this data into a

spreadsheet. The spreadsheet should include each bottle's price and

compute total inventory value.

We compare sales to inventory. At the end of the inventory period

(generally one month), count the beverage inventory. Enter this data

into the inventory spreadsheet. Calculate the difference between the

previous night's inventory and the morning inventory. Divide this

number by your liquor sales to determine your beverage cost.

We review the beverage store room logs against our invoice records

for the inventory period. The beginning inventory plus bottles

purchased less bottles transferred to the consumer should match our

ending inventory. Breakage may affect this total slightly, so we



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instruct staff to maintain a list of broken bottles and provide the

broken bottle top as evidence.

ProductionAs an online liquor seller we do not have any production activity. We

are not producing liquor, we are in direct contact with the suppliers

and distributers in New Delhi. We check the inventory regularly and

update the inventory information every day, in case of excessive

demand sometime because of the festival season or marriage season,

we increase the no. of temporary employee.



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SOURCES OF FUND OR FIN ANCE

Since our business Chill-out beverage is an click and mortar type of

business having a vast selection of liquor, spirits ,wine, and fine cigars

, cold drinks as well as a wide assortment of rare and hard to findliquor and smoking accessories, Which need a huge amount of

investment. There are several sources of fund through which we can

raise fund. Our budget for starting new online business is RS 5crore.

There are several sources through which we can raise money.

Following are the sources through which we are going to raise fund:-

1)Personal Sources:- A large number of start-ups are 'self funded' i.e.

Rs. 2crore is contributed by the six partner equally. Some of ourfriend is going to invest in our business. So we will raise Rs 3crore

through personal finance.

2) Banks and Finance Companies- Bank is the most common source of

funding in the form of loans, overdrafts, and other types of finance.

For arranging the remaining funds of Rs. 2crore, we are going to take

loan and also get tie-up with bank of Baroda. We have preferred to

this bank because of their low interest rate.

Following are our Projected Break Even Point (B.E.P) which we

assume to achieve in three year.



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Statement Showing the Break Even Point of Speed

Particulars Amount

(In Rs.)

Start-up

Requirements

Start-up Expenses

Domain Name Registration 15,000

SSL Encryption 15,000

Geo Trust True Site Certificate 35,000

Auction & Classified Software (Xcent) 80,000

Legal Fees 150,000

Research & development 2,80,000

Programming & Site Development 50,000

Site Hosting ( For 1st year ) 5,000

Launch Promotions 100,000

Search Engine Registration 10,000

A. Total Start-up Expenses 7,40,000

Start-up Assets

Cash Required 14,00,000

Stocks 83,00,000

Long-term Assets ( Computers (10)) 3,00,000

B. Total Assets 100,00,000



We expect that in 1st year we will achieve 10crore sales and our 1st

year estimated profit will be Rs 5crore. In the second year our

expenses were same excluding the direct expenses, Salaries, amount

paid to dealers are to be increase by 10% which are estimated to be

Rs. 22,50,000 so our expenses for the 2nd year will be Rs

4,25,10,000. In second year, our expected profit will be 6crore. So in

the middle of the 2nd year we will achieve the B.E.P. and after that we

will start getting actual profit.

chill out beverage

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