Market Profile
The Pakistani economy is almost evenly divided between the commodity sector and the
Services sector. The total contribution of services sector to real GDP is 48.7% of which
Contribution of Wholesale and Retail is 15.4 %.We have chosen KDA Scheme-1 as an ideal location for setting up of a General store. We have chosen to do so because there is no established utility store in the vicinity. This fact provides an ideal opportunity to build a store which will have a competitive advantage of being the only General store in the vicinity. Since being a posh area with most of the families having to drive in other localities to buy groceries, we expect our door to door service to give us an edge in gaining the confidence and trust of the residents. Being a residential area we would expect to build customers by providing basic utility items and groceries.
INDUSTRY ANALYSIS
Contribution of retail and whole sale sector towards GDP
Year Share
Gross fixed capital formation (Investment in fixed assets) in this industry by private
Sector has also shown a progressive trend. In year 2005-2006 growth in gross fixed
Capital formation by private sector has shown an increase of 17.9%
COMPETITION
DIRECT INDIRECT COMPETITION
In KDA Officer Society Block A there is a Direct Competition but that direct competition is not able to fulfill the demand of the consumer. Indirect competition exists in the form of other utility stores which are:
- Sunny Medico store
- Time Medico
- Imtiaz Royal Medico
- Other small stores located near KDA Scheme A.
SCOPE OF THE BUSINESS
The market of general store is growing progressively in Pakistan. The area which we have grant is KDA officer scheme in which there are only three small general store which are not able to satisfy the need of the locality. There is a great opportunity to attract people by an outstanding rich good customer service.
The market in KDA scheme are the high profile people their income are high i.e. to cater the upper medium to elite class with a good customer service experience, we will plan to cater all the basic good and service will provide different variety of scheme and discount on buying products We plan to provide incorporated services related to goods and services under one roof in a very effective and efficient way.
VISION
“To become the premier class of providing goods and services and create unlimited enlightened experience for our customers while maximizing positive returns.”
MISSION
General Store will strive to provide superior customer service and the highest quality groceries at an affordable price, while operating as a profit and growth oriented business. We will accomplish this by developing, an innovative and distinctive network of stores that meets the dynamic needs of the value-driven and time-sensitive consumer.
CORE VALUES
Values that are core to our management and culture:
Associates
General Store will foster a progressive, diverse Associate environment centered on mutual respect, dignity, equality, open communications and an emphasis on excellence in personal contribution to company goals.
Community Citizenship
General Store is committed to supporting community needs with heavy emphasis on eradicating hunger and improving the quality of life for children.
Customer Service
General Store places the highest priority on quality customer service and ensuring total customer satisfaction.
Honesty & Integrity
General Store holds to the highest standards of honesty and integrity in all its dealings with its customers, vendors, Associates, and investors.
Win/Win Partnerships
General Store embraces and promotes the natural success that comes from win/win partnerships with vendors
OBJECTIVES
“The objective of the project will be to launch a General store in residential vicinity which will cater to the basic utility and necessities of a household. “
- We want to launch a General store because it will have many small projects which will encompass all the intricacies of project management course outline.
- We plan to initiate a door to door service campaign so as to lure the customers to our store and make their monthly and daily purchases of their utilities.
- Provide great work environment and treat each other with respect and dignity.
- Recognize that profitability is essential to our future success.
DIVISION CATEGORIES OF PRODUCT i.e. FOOD NON FOOD ETC
Our product profile consists of;
- Groceries and food items
- baby products
- Soaps, detergents and chemicals
- Ice-cream and beverages
- Selective Stationery, greeting cards
- pop/chips
- food products
- pharmacy products
- General items
STRATEGY
Strategy is based looking into the following criteria, which should be met and matched at any cost:
- Time line: should be completed on time
- Quality: High quality
- Efficiency of the area: Should serve the purpose and need.
MARKETING STRATEGY
Regular and sustained marketing is required for a successful business of general store. The marketing channels would be flyer distribution and membership campaign.
Flyer Distribution:
Flyers will be distributed in the local area on a quarterly basis for advertising specials and promotions schemes
Membership campaign
A membership campaign will be launched in order to facilitate the consumers with door-to-door delivery of goods on a phone call for a minimum purchase of Rs.125/-. This facility will be restricted to the residents of the KDA Scheme who will be allotted a membership number. The payment terms will be cash on delivery with in a time frame of 30 minutes to one hour. On monthly basis selection of members who made the purchases above
Rs. 3,000/- and will be sent gift hampers as part of promotion scheme.
General Store will attract local clients and foster loyalty with convenient location, and friendly service.
PROJECT TEAM
1. Project Manager – MS. Shirin Alvani
2. Finance manager –Ms Mona Jevtani
3. Procurement manager – Mr. Faiz Shakeel
4. Marketing & operation manager. – Ms. Asma .mehmood
SWOT ANALYSIS
A SWOT analysis is a deliberate planning tool used to assess the strength, weakness, opportunity and threats concerned in a project or trade venture. Opportunity and threats create from outside the company. Strength and weakness are internal to the company.
STRENGTH:
- Good understanding relationship between team members
- Easy availability of resources (manpower/salesman)
- De-Centralized Decision Making
- Demand
- Easy accessibility for the target market
- The only retail store within the vicinity with a POS machine
- Trained Staff
- Located in a KDA society which reduces the risk of law and order because of security.
WEAKNESS
- The management team does not appropriate experience of the retail business.
- Because of the fact that the business will be located in KDA where approval of entry is required, suppliers may be hesitant to give terms.
- Weak supplier network
- The shops are on rental basis which make us accountable to the owners request
- Because of being an infant in the business, the terms with suppliers will be less negotiable
OPPORTUNITY
- There is the opportunity to expand the product line(s) that the store carries.
- To provide door-to door service to attract customers
- Growing population
- Become the general store for that region for monthly purchase.
- Low competition
- Membership Campaign for frequent customers
THREATS
- Existing general stores located in the region.
- The shop will be made with the combination of three shops. Incase any of the agreement is ended this would result in downsizing the shop.
- The end of rental agreement
- Consumer preference to other big stores due to perception
- Increase credit sales may be required to lure customers
PROJECT CAPACITY
The proposed general store will have an area of 1575 sqft having covered/indoor shopping facilities and will also have warehouse.
Key success factor
The business will succeed due to variety of reason:
- Sufficient space for customer car parking.
- Well trained and mannered staff
- The greatest location - visibility, high traffic pattern, convenient access.
The friendliest servers - cheerful, skilled, professional, articulate.-
Pricing strategy.
- There should be regular and sustained marketing through fliers distribution cable TV
PROJECT PROFILE
To be precise the project will have following lifecycle:
.
PROJECT SCOPE CHECK LIST
Deliverables:
- 1575 sft store with frontage for car parking,
- 400 sft placing for ware house
- Wash Room facility for staff
- Concealed wiring with provisions for generator , A/c s, sockets & telephone connection
- Computer for cash counters
- Iron Shelving
- Tile Flooring
- Entry and Exit Doors
- Glass Door with handles on both sides
- Provision for stand by generators 5KV
- Equipped with air conditioners (2tons), fridge, deep freezer
Mile Stones:
- Location for the shop - April 21, 2007
- Rent Agreement with the land owners - June 30 2007.
- Master plan approved by - June 31, 2007.
- Complete renovation of store by - October 31 2007.
- Finalization of supplier’s contracts and shelf spacing before- October 31 2007
- Inauguration on November 2007.
Technical Requirements:
- Stock management software.
- Computer.
- POS Terminals
Limits and Exclusions:
- Rental agreement constraints.
- Insufficient land does not allow us to increase our product range.
- Membership campaign is limited to the residents of KDA.
- Credibility factor in the initial phase as suppliers do not give credit to newly entrants.
Customer review:
The general store will provide selection of merchandise in a relatively isolated area where customers will have an easy access to there daily rations. Because of being easily accessible with adequate parking it will be convenient for the locality to purchase their utilities.
STANDARDS OF PROJECT
Time
Opening of a General store, is a series of task and activities which consumes, time, cost and resources simultaneously. This project will consume maximum of seven months from the decision of project site till the day of its operation. All the activities and work break down schedule are shown in the annexure with the help of MS Project.
Cost
Casper Convenience store at KDA Scheme A spread over on 1,575 sq Ft. We plan to rent out three shops on rent and making one big store of it each shop is of 35 x 15 Sq. ft. Since the shops cant be purchased because those who own the shops have gone abroad and the decision of renting the shops is taken by real estate agent having an office near by the shops available in that area.
The agreement signed between Casper group partners and real estate agent is Rs. 7,000/- rent per month for each shop i.e. Rs. 21,000/- per month, payment will be made on quarterly basis. In addition, according to the agreement we have to pay in advance rent for one quarter paid as token money for 3 years. Rent charges may change if inflation effects on buying power of the consumers. All the clauses of the contract have been accepted by both parties. Apart from the rental cost, the project cost is altogether of Rs. 2 Million; this includes construction and renovation, purchase and procurement of inventory, fixture and fittings, air conditioning and so forth.
Quality: To put in all the required efforts and resources used, they bring the quality within which is shown outwardly at workplace.
Performance: To have good harmonization between partners, this will include highest honesty, respect and thoughtful & good working on the project of general stores. Executing the whole thing with quality and approach. For well-organized presentation, we need to cover as stated:
- Cleanliness
- Ambient environment
- Meeting the deadlines
- Work under budgeted cost and estimates
- Friendly and courteous staff
Capital Expenditure
This section will provide a detail analysis of the estimates of the cost of furniture and fixtures required to set the business. These will include items like:
PROFIT MARGIN
Profit Margins for a convenience store vary for every product category.
PROPOSED MARKETING COMMUNICATION
The basic principle of marketing is to sell the right product, at the right price and promote it in the right place to the right people.
Major marketing options include, site advertisement, Flyers, print ads in newspaper & magazines.
Market our general store
- Direct marketing
- Indirect marketing
- Door to door service
- Mail order sales
BUSINESS OPERATIONS
We plan to keep a reserve stock of non perishable goods for 15 days.
- Inventory Procurement
Procurement will be done through two sources i.e. either through delivery vans of the Companies like Dawn, Unilever, P & G, Nestle, Pepsi Co. Walls, K&N’s and other distributors whose delivery Vans will visit our store after certain specified time.
The other way of Purchasing will be buying through the traditional wholesale markets. Purchasing will be done in every 15-20 days after physical count of the goods available and adding the buffer stock to it and then finding out what is the quantity required.
Third mode of procurement will be done through the intermediaries and agents of imported goods, so as to avoid procuring directly and to save consumption of time and resources. Ordering procedure will be based on monthly basis.
- Product Mix Offered
Managing the merchandising mix involves decision about what products to carry, styles, models, colors, sizes, and price ranges, and how many units of each product to have in inventory. Many customers select one store over another because of the variety or assortments of goods available.
Following is the list products along with its shelf-space required in terms of percentage.
- Dealing with Customers.
The hired staffs are trained as such that they are well mannered and courtesy in dealing with the customers so that the name of Casper store remain in the minds of the people that they were dealt-with nicely. Which will also give us an edge on competitors. Any complaints by the customers should be immediately noted down and action will be taken accordingly.
- Knowledge of the Staff
The sales persons hired should have in-depth knowledge of all the products so that they are able to provide information if any required by the customers. Special care has been taken in hiring chemist for the medical section.
- Rent-Out Shelf/Spaces to Companies
One-way of earning is done by renting shelf/space to different companies for their products, where they can display their own products. We can charge them 15% of their sales as rent.
Land & Building requirements
Land of Casper store is approximately of 1575 square yards, which is acquired on the rental basis for setting up a general store in “A” class category.
- Utilities Requirement
In our store the only direct utility cost will be electricity and telephone charges. The consumption of electricity will be lower in the winters as compared to the summers since the air-conditioning will be shut, this will result in savings directly to the business.
PROJECT SCREENING SYSTEM
ORGANIZATION STRUCTURE OF GENERAL STORE
PROJECT PRIORITY MATRIX
RISKS
RISK ASSESSMENT MATRIX
Responses to Risk Matrix
