convenience night & day

8/6/2019 Convenience Night & Day

1/23

Convenience Night & DayConvenience Night & Day

A Solution To All Your basic Home Needs!!

Tarandeep Singh

Jagjeet Singh

Sunny Saini

Md Hasan

Sahil Jain

Nishant Saurabh


2/23

BUSINESS SUMMARYBUSINESS SUMMARYy Company Purpose

y Problem we are dealing with

y Who our customer is

y How will we make money

y Why would the customer pay us

y Solution

y Why Now

y The Market Size(SAM, TAM, SOM)

y Competition

y Product

y Development Roadmapy Business Model(Pricing, Average Account Size)

y Team

y Financials


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Company PurposeCompany Purpose

Night & Day will offer a range of fresh, organic produce, staples,

packaged foods, drinks (alcoholic and nonalcoholic), prepackaged

fresh meals and pastries, newspapers, pet foods, medicines,health and beauty items, etc. In addition, Night & Day will also

rent a small section of the store to a cafe. The cafe will have

seating for approximately 20 people and will provide breakfast,

lunch, coffee, tea, cold drinks and pastries.

Night & Day competitive edge is its location, its focus on customer

service and the convenience of24 hours service.


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Sharing the Customers PainSharing the Customers Pain

Convenience stores offer speed of service to time-starvedconsumers who want to get in and out of the store quickly.These shoppers recognize this channel of trade for itsconvenient locations, extended hours of operation, one-stopshopping, grab-and-go foodservice, variety of merchandise

and fast transactions.The fact that the store is situated very near to the customershousing vicinity is an answer to the pain that the customersgenerally have to face when they need to rush to the placesfar away for buying such basic household commodities thatwe have to offer.

When this issue is solved the customers will tend to buy moreand more of the products at the rates offered at.


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MissionMission

The mission of Night & Day Convenience Store is to

provide packaged foods, fresh foods, fast food, soft

drinks, beer, cigarettes, groceries, and selected

nonfood items to residents of the Dream City(Noida)and surrounding neighborhoods. The store will provide

fair priced items to its customers.

The number of convenience stores registered under the

association is 144,541 as of December 31, 2009. This is thesecond straight year the count has declined and only the

fourth time in the last 15 years that the industrys store

count has declined. The count also declined in 1994, 2003

and 2008.


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Industry ProfileIndustry Profile

y Industry size

y Scope

y

Operationsy Recent trends

y Risks

y

Opportunitiesy Industry forecast


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Industry IssuesIndustry Issues

y While convenience stores have offered

fresh, prepared foods for years, it is only

over the last decade that the trend has

accelerated. The result is that conveniencestores have continued to evolve from

convenience stores that happen to sell

food to restaurants that happen to selldaily need items.


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y Facts and trends about the top in-store merchandise categories andservices of the convenience retailing industry.

y Alcoholic Beverage Sales:Nearly 80 percent of convenience stores sellbeer, accounting for nearly one-third of all beer purchased in the India,about 93 percent of which is sold cold.

y Candy Sales:Candy is a high-impulse item in convenience stores, now-a-

days. In fact, many shoppers (49 percent) report that their candy purchaseswere unplanned.

y Coffee Sales:More than three out of four adult Indians say that theydrink coffee either daily or regularly, according to the National CoffeeAssociation, and convenience stores are one of the preferred destinationsfor coffee drinkers. Consumers stop to buy coffee more than they fill uptheir cars, providing convenience stores with a great opportunity to build

loyalty and repeat sales.y Technology:The integration of technology into convenience stores

continues at a fast pace. Over the past decade, the convenience storeindustry has gone from being a technology laggard to a technology leaderin using new technologies to deliver convenience.


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ObjectivesObjectives

1. To make Night & Day the preferred conveniencestore for the residents of the newly built Dream City and

surrounding neighborhoods.

2. To break-even(no profit no loss) by the end of

the first year.

3. To achieve a net profit of 5% by year three.


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Keys To SuccessKeys To Success

1. To convince Aspen Estates residents that Night &

Day is "their" convenience store.

2. To turn over inventory an average of15 - 20 times

per year.

3. To provide a broad supply of groceries, food andnecessary household items.

4. To provide easy parking facility.


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Company SummaryCompany Summary

Night & Day Convenience Store is a start-up venture. The

store will occupy a leased property which is located on theMain Highway in NOIDA approximately 30 yards from the

main entrance of Dream City. The new building contains

five other store fronts that were built at the same time as

the apartments. On the same strip there will be a coffee

shop, a gourmet chocolate shop, a gift shop and abookstore.


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Sales

Alchoholic Beverages

Cigarettes & othertobbaco products

Food serviceproducts

Groceries and otherproducts

Non-alcoholicbeverages


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Risk Rate of this IndustryRisk Rate of this Industry

This report looks at the operational risk associated with thisindustry. Three types of risk are recognized in our analysis.These are: risk arising from within the industry itself(structural risk), risks arising from the expected futureperformance of the industry (growth risk) and risk arisingfrom forces external to the industry (external sensitivityrisk).

The Convenience Store industry is made up of retailbusinesses with a primary emphasis on selling basic food,beverage and tobacco products at accessible locations andtimes. The industry does not include grocery stores or small

kiosks.

The primary activities of firms in this industry are:Retailing a limited line of goods with an emphasis on basicfood, beverages and tobacco products.


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Dairy WholesalingaDairy Wholesalinga

scope(part of the conveniencescope(part of the convenience

store)store)y Dairy manufacturers have increasingly been

incorporating wholesale functions as part of theiroverall operation which will likely constituteintensified competition for independent wholesalers

in the future. Per capita consumption of dairyproducts is expected to rise due largely to populationgrowth and this trend will boost demand for thismature industry's products. The extent of growthhowever, will be limited by the increasing change inhealth mentality toward dairy products.

y In-depth industry market research presented in alogical and consistent format. Including 39 pages ofinsights covering industry conditions, key statistics,competitor analysis and market share, product andcustomer segmentation and a 5 year forecast.


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Model Design (NOIDA DREAM CITY)Model Design (NOIDA DREAM CITY)


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Feel the Heat of Competition fromFeel the Heat of Competition from

prepre--existing Giants & householdexisting Giants & household

stable service providers.stable service providers.y Traditional family run convenience stores are too well established in India than to be

wiped out and besides there is uniqueness in the traditional items that represent the Indian sub-

continent. The retail stores in India are essentially dominated by the unorganized sector or

traditional stores. In fact the traditional stores have taken up 98 percent of the Indian retail

market. Now stores run by families are primarily food based and the set up is as Kirana or the

'corner grocer' stores. Basically they provide high service with low prices. If the stores are not

food based then the type of retail items available are local in nature.

The traditional family run convenience stores can take pride in the fact that the Kirana is the

most common outlet forms for the consumers. The tough competition for convenience stores

are coming from organized retail stores dealing in food items, like:

Apna Bazaar

y

Canteen storesy Food World

y Subhiksha

y Food Bazaar

y 6 Ten


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y Convenience Stores are open for long hours and is one of the formatsof the Indian retail stores that cater to basic needs of the consumer. Thesestores are found in both residential as well as commercial markets. Thefood products of traditional family run convenience stores are comprisedof branded as well as non-branded items. The benefits of family runconvenience stores is that they give importance to:

Personal touch Facilities of credit Quick home delivery

Non-food based stock comprises of multiple and varieties of local brands.The future of such stores as they face competition from organizedsector, would depend on the following particulars:Place and capacity

y Diligent area coverage

y Disciplined work schedule

y Managing turnover

y Revenue from assets

y Customer service and satisfaction


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Start Up SummaryStart Up Summary

Requirements INR

Start-up Expenses

Legal 50,000

Stationery etc. 50,000

Consultants 23,000Insurance 5,00,000

Rent 5,00,000

Expensed Equipment 1,00,000

Other 12,000

Total Start-up Expenses 12,35,000

Start-up Assets

Cash Required 10,00,000

Start-up Inventory 35,00,000

Other Current Assets 23,500

Long-term Assets 15,00,000

Total Assets 60,23,500

Total Requirements 72,58,500

INR

Liabilities and Capital

Liabilities

Current Borrowing 23,50,000

Long-term Liabilities 0

Accounts Payable (Outstanding Bills) 0

Other Current Liabilities (interest-free) 0

Total Liabilities

23,50,000

Capital

Planned Investment

Investor 1 20,00,000

Other 0

Additional Investment Requirement 0

Total Planned Investment 20,00,000

Loss at Start-up (Start-up Expenses) (3,00,000)

TotalCapital 17,00,000

Total Capital and Liabilities 40,50,000

Partners investment 32,08,500

Total Funding 72,58,500


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ProductsProducts

The store will provide typical items found in any convenience store,

however, items will be "higher end" than many conveniencestores. Night & Day will offer a range of fresh, organic produce,

staples, packaged foods, drinks (alcoholic and nonalcoholic),

prepackaged fresh meals and pastries, newspapers, pet foods,medicines, health and beauty items, etc. In addition, Night & Day will

rent a small section of the store to a cafe. The cafe will provide

breakfast, lunch, coffee, tea, cold drinks and pastries. There will beseating for approximately 20 people.


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Market Analysis SummaryMarket Analysis Summary

The Aspen Estates is a newly built apartment complex in the western

suburbs of Sonipat. Construction is scheduled to continue for the next

eight months, however 350 condominiums and townhouses are

already complete and approximately another175 are scheduled for

completion in the next eight months.

All of the residences are for sale, not rent, so it is expected that the

household income of the residents of Aspen Estates will be higher than

the national average.

Night & day is so far the only convenience store in the area therefore

there is a very little competition in the segment.


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Industry AnalysisIndustry Analysis

The convenience store industry is highly fragmented,

though larger players, such as Big Bazar, Spencers, etc.dominate since they are based in very high traffic areas

and have the money during the early eighties to grow

quickly.

Gross profits are typically 20 - 22%, with net profits


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ConclusionConclusion

y According to the surveys done by the

NACS (National Association of

Convenience Stores) the market for the

convenience stores is going to rise in thenext few years drastically as urbanization

of the cities and the purchasing power of

the Indian citizens is soaring.So, we see a great future in the business of

running our convenience store

convenience night & day

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