Business plan:

Providing Retail support with module specific software on service and advertisement through web portal.

Name of the firm: Retailmasti.com Team name: Argonauts

Team members: Achal Kumar Prasad BA !"T# $rd sem """T%Allahabad Garima Agarwal BA !"T# $rd sem """T%Allahabad

Executive Summary:
www.retailmasti.com &ur compan' offers it(s services to the retail industr'. )ith giants li*e Big Ba+aar, Reliance Retail, -ubhi*sha, -pencer(s. ta*ing the industr' b' storm, the mid%si+e and small retailers need our services to sta' afloat. &ur strength lies in offering our services at a reasonable cost. )e will be able to do so b' using the same software for all our retail customers and onl' ma*ing changes in the application la'er to be specific to the customers. The retailers wouldn(t need speciali+ed technical e/perts at their end, since all the wor* would be handled at our end. -ince, we(ll be offering services to a large number of retailers we would achieve an econom' of scale. Being avant%garde in this field, it would be sometime before cop' cats would venture into this field. -o, we have to be ver' 0uic* in capturing the mar*et. )e would be able to beat the competition b' economies of scale and also b' having more and more consumers visiting our site to chec* for updates. )ith larger number of e'e%balls we would subse0uentl' be able to charge for advertising, which would be a second source of revenue. Product customer interface and profit matri/: Product1customer -oftware with 2R application -oftware for operation -earch engine!with the web page# 2it' specific web portal advertisement and detail Retail organi+ation 3es 3es 3es 'es "nternet users 'es Profit and benefit schemes -oftware fare and users visits for portal 4are, further can be used as consultanc' otivation to 5oin us, and increase in customer with profit in lin*ing. 6ispla' and listing charges from retail and getting other advertisement and mutual lin* with other web portals due to increase in number of visits

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Product, service and technology:

Software with CRM application and software for operations:
Based on the -AA- concept, our offerings will be substitutes for costl' 7RP pac*ages as well as e/pensive advertising for small and medium si+ed firms. These are speciall' designed b' us for multiple users at the same time being user specific. All the interfaces and databases will be stored at our end and the retailer will have access to the information onl' if he has proper authori+ation. )e will design specific business functions for them which will ma*e them efficient in operations, planning and forecasting. along with some functionalit' of 2R .

City specific web portal www!retailmasti!com"

)e will run a website for common use b' the retailer and the customer that will be cit' specific. This website will have multi functionalit':% 8ogin for the software for the retailers who will use our software. 8in* for search engine. Product and sale offers b' retailer. Boo*ing or registering for an' facilit' of retail shop. Advertisement. Tender and different re0uirements displa'.

Situation analysis:
9. The Retail -ector is growing faster than an'thing in "ndia. )e have from giants to dwarfs pla'ing in the retail field. :. The use of internet amongst the masses and the use of software for improving business efficienc' is also growing at a ver' fast pace. The aforementioned points are based on e/tensive research done on the respective sub5ects. )e see a lot of potential in this scenario. )ith the purchase and subse0uent implementation of 7RP pac*ages running into crores, small and medium si+ed retailers find in to be an unviable investment. This is where we come in. )e offer these retailers the modules for -uppl' 2hain &perations and 2R , at a fraction of the cost of the bigger 7RP vendors. )e also propose to offer a medium of displa' for the retailers. The promotional offers and schemes can be displa'ed at our site. )e propose to give this service free for the first si/ months of our e/istence. )ith distances in cities being what the' are, the customers will find it useful to first chec* for offers and then go for shopping. And this would also help the retailers b' enticing customers with their special offers.

&ur solution would be to offer access to the software and displa' facilit' both on the same website. The displa' of the offers would be cit' specific with the resident having access to the offers available in his cit'. The Retail -ector is booming in "ndia. And there is lots of scope to grow. According to A T Kearne'(s Global Retail 6evelopment "nde/ !GR6"# "ndia has a score of ;:, the best amongst other Asian countries. -ome companies who are in the retail sector are not so huge that the' can have their own customi+ed 7RP software for themselves, so we step in offering them our common speciali+ed software. Customer#s analysis web users": )e propose to give high 0ualit' service to net users and the retailers who would eventuall' be pa'ing us for using our services. The net users1retailers customers would have free access to the information. Their increasing numbers would be strength for us. -o serving them with the proper care would be our priorit' and we ta*e them to be our customer as well. 2ustomers for the retail stores are a mi/ of classes but mainl' from the high and middle class, those who educated and have a si+eable amount of disposable income. According to ar*et Pulse Research sec A and sec B class of customers constitute around <=> of the total customers. And these customers are also going for internet at home. $ndustry: ?owever our product pac*age will be new to the industr'. But, as far as completion is concern we include all those media and pla'er those who are somehow helping retail industr' or customer to reach retail. To name some we have local news papers, cable operators and other retail news portals. But our products will be accredited b' the retail pla'ers who are using our products so that we will have the advantage over other pla'ers.

Mar%et &nalysis:
A complete review and anal'sis of the mar*et conditions, behavior, and trends is an essential part of a good mar*eting plan. an' new companies have indications about mar*et conditions, but ver' little evidence to support the intuition. 7vidence to support each of the following sections is the *e' to a thorough mar*et anal'sis. '! $ndustry (escription, Scope and )rends "n "ndia, modern retail is 5ust : to $ per cent of overall retail, but is growing at a remar*able := per cent per 'ear. The catal'st for this growth, or at least one catal'st, is the westerni+ation of the culture. odern retail is ta*ing off in large cities primaril' because television shows, movies and "nternet sites help shape dail' life and offer a glimpse into modern retail(s enticements @

a vast selection of products !not available at mom%and%pop shops# and the abilit' to shop in air%conditioned comfort. :. Ma*or Customer Profile &ur customer will be those retailers who can not afford for the complete 7RP pac*age. The mid%si+e and small retailers who are loo*ing for technolog' support through "T but don(t have proper infrastructure !"T# will be our clients. +! Problems, ,bstacles and ,pportunities 2onvincing the retailers for using our software can be a minor obstacle, but once the' understand its necessit' for survival, we(ll have lo'al customers. No other pla'er is offering these software(s at such competitive prices. There are a large number of retailers who don(t have the re0uisite e/pertise, the manpower, or the resources to implement such t'pes of soft wares on their own.

Strength wea%ness opportunity and threats analysis:

)e have several strengths on which we will grow but still we have some wea*ness li*e lac* of brand image and threats of growing cit' channels who will be the challenging issue in our venture. Below here we have done our -)&T anal'sis for the ob5ective of entering in new mar*et. Strengths with which we will enter the mar%et: $nnovative product mix: first time we are going to introduce this t'pe of service for the retail industr' so whatever the mar*et we will generate we will have the whole share. Rent based software: since we are not selling the whole software but we are *eeping the all the hardware and software with us. -o getting customer will be eas' for us. )echnology and innovation: both of the founder members of our organi+ation are having sharp edge for technolog' and functional specialit' with innovative ideas. That will help us in catering properl' in changing mar*et. -ea%nesses that are going to interfere with our ability to achieve the ob*ective .ac% of brand awareness: we are ver' new to industr' so we will have to wor* hard to get our name in retail industr' and customers. .ower level of customi/ations: our software will be for common use so we will prefer the best practices going in industr'. But this will restrict us for lower level of customi+ation for individual retail compan'. $nnovative product mix: we are also ta*ing our advantage as wea*ness too because we will have to put lot of effort to convinced our customer for the advantage of our product.

,pportunities: our advantages 0igh prices for ERP modules: the whole 7RP module will cost much for small and medium si+e retailers so the' will loo* for the cheaper substitute. 0igh growth of retail sector: retail industr' is growing with a pace. -o we will have lots of opportunit' to e/pand our business over the time. $ncreasing internet users in all segments of customers: with increasing number of internet users our web portals customer will increase and more will be the revenue from advertisement. )hreats: unfavourable external conditions 1lexible demand: our main obstacle will be the adaptation of the software with changing mar*et demand. (iverse strategy of different retail shop: we all *now that the business processes of different retail shops are different. -o we will have to manage the best possible alternative of process for the software.

,perational strategy:
1unctional analysis of retail operation: Till arch :AAB we will anal'se the detail operation of retail organisation module specific: Procurement and warehousing: which t'pe of procurement strateg' the' follow and how we can integrate them with "T or software. )e will also stud' their t'pe of documentation and inventor' management. Customer related operation: we will tr' to develop customer relationship management process integrated with our software so that small retail organi+ation will retain and their customer with e/tra support and services. Also the' will be able to manage data of customer for their operational strateg'. )e will tr' to integrate this with their operations. Setting up a hub in &llahabad: our operation centre will locate at Allahabad with a 0ualit' infrastructure bac* up with :CD< supplies of electricit' and net connection. )e will have three integrated server wor*ing for our software and web portal with maintenance room for web developers. (evelopment of re2uired software 4eatures: 9. Eser end should be compan' specific so that the' will get their own customi+e interface on their end.

:. 2ombination of process can be club for specific compan'. $. 6ata storage should be separated for all users. C. segregated sub processes so that we can ma*e it fle/ible over the demand or change (evelopment of web portal: )e will ma*e a team of web developers who will wor* on the website. The website will be design consumer friendl' as much as possible. "t will be cit' specific and will have the lin* of all retail shops of that cit'. The' will put their name with logo on the front page and detail inside the page. 2ompan' page will be developing as such that the' can manage their dail' or wee*l' attraction on their own. 3etting shops on our web portal: &ur web portal has an ob5ective to provide all information about the retail shop and their dail' offers and we are not charging for our general web services. -o the' will easil' be convinced with the idea and will give us opportunit' to advertise them. )e will 5ust promote our web portal in their shops with stic*ers and some collaborative effort to advertise them. Premium services on web portal: -ome of the our services on web portal will be given onl' to premium members who will pa' us for them. 8i*e: Getting emplo'ment add or suppliers add Getting add on front page cit' specific or countr' specific

Mar%eting strategy:
,b*ective: we have set aggressive but achievable ob5ectives for the first and second 'ears of the mar*et entr'. 4irst 'ear: to spread over at least CA cities in the 'ear with average of =AAAA clic*s per da' for the web portal. 4or our software products we will get at least of 9AA of retail shops. -econd 'ear: our ob5ective for second 'ear to achieve the brea* even on earl' of second 'ear with rent that we are getting on two modules. Strategy mix for mar%eting: &ur PR agents will visit retailers in the tier%"" and tier F""" cities. )e offer them our software at a competitive price and give them an opportunit' to reach out to a wider base of potential customers through the net. This would be offered free of charge for the first si/ months of our e/istence. )e also offer the retailer to give information about the other regular products being offered. "n turn, the retailer would also put up our stic*ers and displa' boards advertising our site. This would be a win%win situation for both. 4or the first 'ear, we would not be able to ma*e a profit, not even operationall'. )e would not be having man' users of our software neither a lot of people visiting our site. B' the second 'ear our software would gain acceptance in the mar*et, because b' now the return on investment would be visible to the retailer. -lowl' the number of end

customers would also increase. B' the end of the second 'ear our operations would be profitable, but our fi/ed costs would still need to be recovered. Mar%et communication: &ur mar*et communication strateg' will be three pronged: 9. )hrough local channel and banners: this media will cover the re0uirement of web portal and will ma*e the net users *now about us and our sites offering. :. )hrough personal communication: since our software products are new so we will have to describe it personall' at each retail shop. 4urther we will manage a help line for them to contact us for detailed description of our product. $. )hrough the collaborative effort of retailers: since we are not charging retailers for these web facilities and the' will also get benefit of this so we will tr' to engage them in promoting us with stic*ers and gift with our name.

,rganisation structure:
&chal 4umar Prasad CE," 3arima &garwal C)," -ince our organisation comes in the service sector and our wor* is highl' *nowledge based so we will not have an' hierarch' in the organi+ation. )e will wor* as a team, with the members being cross functional and guided b' our common ob5ectives. The team structure would be: Software ma%ing and updating 5 members": in retail changes happen fast and we are also having more than 9 customer for the same product and will have to manage regularl' their re0uirements and respond to them. 6ualification: B. Tech. in computer sciences with 9 or : 'ear of !e/p.# in software ma*ing pro5ect. 7usiness function analyst 8 members": the' will be responsible for stud'ing business processes at retail and transforming them to wor* in automated environment. The' will also *eep chec*ing whether the websites is functioning with the re0uirement or not. 6ualification: BA !"T# preferabl' with computer science bac*ground Public relation 8 members": the team will be responsible for getting new customers software and *eeping relationship with retailers for their web page update and promotion. 6ualification: BA with mar*eting as a specialisation with good communication and negotiation s*ill. (ata base management 9 members": two senior and two 5unior members will be their so that the' will manage the database efficientl'. 4urther the two of 5unior will *eep contact with the retail organi+ation for train them with the automated facilit' we are providing to them. 6ualification: 9. B2A with : 'r e/p. :. B2A

1inancial investment and return:

)e are launching two of our product at time and our return will increase graduall'. Now we are e/plaining our main investment pattern related to software we are providing on rent. Below here we are presenting pro5ected cash flow statement for the ne/t two 'ear. 2A-? 48&) -TAT7 7NT Rent per user <o! of used month <et sales 1ixed cost >ariable cost depreciation Pre tax income )ax expense license <et income &dd bac% depreciation <et cash flow :ear ' 5;;; 9;; 8;,;;;;; 8+,;;;;; '9,;;;;; 8,;;;;; '?,;;;;;" 5;,;;; '?,5;;;;" 8,;;;;; '=,5;;;;" :ear 8 5;;; '95; =8,5;;;; 8;,;;;;; '5,;;;;; 8,5;;;; +5;;;;; =5,;;; +9,85;;; 85;;;; +@,=5;;;

1ixed costA infrastructure 8lac" Bpower 'lac" Bserver '!+C+" Bdatabase server 8!5 lac" Bdevelopers ';lacs"Bdes%top and networ% e2uipments + lac" A 8+ lac (epreciationA+;D for electronics accessoriesB ';D for servers A8 lac >ariable costA office e2uipments B advertisement and customisation for individuals A '9 lac per annum "nvestment for our web portal for will be on the pattern 'st year: '; lac 8nd year: E lac The return of the web portal will come through premium membership of our sites and further advertisement. Again we will get long term benefit after increasing our customer reach with advertisement and customer research program.

$nvestment plan:
)e will arrange our capital with loan and our paternal mone' that have been saved for us b' our parents. Rest of the mone' will be drawn from ban*. 6etail plan is given below:

=,AAAAA Achal =,AAAAA Garima

$AAAAAA from ban* in two phases 9=AAAAA in start 9=AAAAA after si/ month
4ey to success: 7/cellence in fulfilling the promise%%completel' confidential, reliable, trustworth' e/pertise and information. 7/pertise in retail business functions with "T application. 2ustomers reach with their respective place.