The Faisalabad Mart – Business Plan

EXECUTIVE SUMMARY__________________________________________________________________4

BUSINESS OVERVIEW______________________________________________________________________4
VISION & MISSION_______________________________________________________________________4
VISION________________________________________________________________________________4
MISSION______________________________________________________________________________5
KEY SUCCESS FACTORS_____________________________________________________________________5
FINANCIAL SITUATION_____________________________________________________________________5
FINANCIAL PROJECTIONS____________________________________________________________________6

STARTUPS EXPENSES___________________________________________________________________ 6

INDUSTRY ANALYSIS___________________________________________________________________ 7

MARKET ANALYSIS_______________________________________________________________________7

TARGET MARKET______________________________________________________________________ 8

MARKETING MIX______________________________________________________________________ 9

PRODUCTS_____________________________________________________________________________9
PRICE________________________________________________________________________________9
PLACEMENT___________________________________________________________________________10
PROMOTION___________________________________________________________________________10
LOCAL PUBLICATIONS_____________________________________________________________________10
COMMUNITY EVENTS/ORGANIZATIONS_________________________________________________________11
COMMUTER ADVERTISING__________________________________________________________________11
CUSTOMER LOYALTY PROGRAMS_____________________________________________________________11
ONGOING CUSTOMER COMMUNICATIONS_______________________________________________________11
PRIME COMPETITION_____________________________________________________________________11
OUR COMPETITIVE ADVANTAGE______________________________________________________________12
LOCATION_____________________________________________________________________________12

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The Faisalabad Mart – Business Plan

AFFORDABLE PRICE______________________________________________________________________12
MANAGEMENT_________________________________________________________________________13
RELATIONSHIPS_________________________________________________________________________13

ORGANIZATIONAL PLAN_______________________________________________________________ 13

PERSONNEL PLAN_______________________________________________________________________14

FINANCIALS__________________________________________________________________________15

KEY ASSUMPTIONS______________________________________________________________________15
STARTUP EXPENSES______________________________________________________________________15
BUSINESS FINANCING_____________________________________________________________________16
INCOME STATEMENT_____________________________________________________________________16
BALANCE SHEET________________________________________________________________________17

IMPLEMENTATION____________________________________________________________________ 18

RESOURCE ALLOCATION_______________________________________________________________ 18

CONCLUSION________________________________________________________________________ 19

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The Faisalabad Mart – Business Plan

EXECUTIVE SUMMARY

Business Overview

The Faisalabad Mart is a neighbourhood convenience store which will be built in a strategic
location in D-Ground, Faisalabad, between a residential neighbourhood and a bustling
commercial sector. We did risk assessments and market research and determined that D-Ground
is the ideal location for our convenience shop.

Our business falls in the category of a convenience store industry to earn a profit while also
providing value for our customers' money and time when they visit us. We wish to provide
patrons of our convenience shop with a diverse selection of both domestic and international high-
quality products from a variety of manufacturing brands at extremely reasonable pricing.

We are aware that there are numerous small convenience stores and convenience store chains
throughout Faisalabad, which is why we invested time and resources in conducting feasibility
studies and market research in order to identify the company in the market that will support its
growth and also allow us to offer significantly more than our competitors.

We understand that our clients are the reason we are in business, which is why we will go above
and beyond to ensure they are pleased and get what they are searching for anytime they come our
convenience store, as well as to convert them into loyal customers and neighbourhood
ambassadors.

The Faisalabad Mart will guarantee that every client receives first-class treatment during their
stay. We have CRM software that enables us to manage a one-on-one relationship with each of
our clients regardless of how huge our customer base grows.

Vision & Mission

Vision
To open a one-stop convenience shop in Faisalabad's D-Ground and other cities around the
Punjab Province.

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The Faisalabad Mart – Business Plan

Mission
Our aim is to develop a convenience store company that will provide a diverse selection of home
necessities (items) from leading brands at competitive rates to residents of Faisalabad as well as
other towns in the Punjab province where we intend to open our outlets and sell our franchise.

Key Success Factors

 The Faisalabad Mart is eminently positioned to thrive for the following reasons:
 The site is heavily trafficked, with a large number of visitors each day.
 The leadership team has a history of success when it comes to operating convenience
stores.
 Convenience shops are quite successful in Faisalabad's neighborhoods.

Financial Situation

The Faisalabad Mart is seeking total funding of PKR 4000,000 to launch its convenience store.
The capital will be used for funding location build-out, hiring initial employees, marketing
expenses and working capital.

Specifically, these funds will be used as follows:

Fund Description Amount (PKR)

Store design/build: 200,000

Working capital: Marketing, salaries, and 200,000

inventory costs

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Financial Projections
Projections for the next 5 years are given below:

  Year 1 Year 2 Year 3 Year 4 Year 5

Revenue 200,000 300,000 400,000 500,000 600,000

Total Expenses 176,390 230,030 250,431 261,901 273,920

EBITDA 23,610 69,970 149,569 238,099 326,080

EBIT 23,610 $69,970 $149,569 $238,099 $326,080

Interest 0 0 0 0 0

Pretax Income 23,610 69,970 149,569 238,099 326,080

Income Tax Expense 13,344 19,409 52,349 83,334 114,128

Net Income 10,266 50,561 97,220 154,764 211,952

**All the amounts are in PKR

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The Faisalabad Mart – Business Plan

STARTUPS EXPENSES

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INDUSTRY ANALYSIS
Over the last 5 years, the convenience store sector has thrived despite strong competition by
providing convenience, affordability, and a diverse selection of fresh and healthful items.
Industry operators have progressively changed their product portfolios to include more profitable
food service products rather than things such as cigarettes and have emphasised meeting
consumer demand for quick and simple meal alternatives. As a consequence, industry operators
have profited from consumers' need for quick and nutritious food delivery.

The industry is projected to expand at a 2.5 percent yearly pace. Consumers are anticipated to
visit convenience stores as more individuals gain employment. Consumers with higher income
levels will almost certainly be willing to pay a premium for convenience store access. As
employment rises, foot traffic in densely populated areas is anticipated to increase, further
boosting industrial demand. Additionally, as income levels increase, consumers are likely to
gravitate into industrial businesses for convenience.

Market Analysis

Convenience shops are frequently placed alongside busy roads, in densely populated areas, in
metropolitan areas, or near train or railroad stations or other modes of travel. Convenience stores
are recognized to be open 24 hours a day, seven days a week in several nations, including the
United States, the United Kingdom, and France.

If you follow the convenience store and retailing industries in general, you've probably noticed
that retailers are increasingly leveraging technology to accurately forecast consumer demand
patterns and strategically position their stores to achieve those goals; in essentially, the use of
technology enables retailers to maximise supply chain efficiencies. Without a question, data
acquired from clients helps retail shops serve them better. The pricing system is another rules
that govern in the retail industry.

Apart from offering a variety of products of varying quality in a convenience store, another of
the simplest methods for players in the this area of business to sell the products on their racks
quickly and constantly restocking is to maintain their pricing slightly lower than what is
available elsewhere.

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TARGET MARKET
When it comes time to sell products found at convenience shops, there is a sizable client base. In
essence, our marketing strategy cannot be limited to a specific demographic, but must include
everyone who lives in the areas where we plan to build our convenience store.

One thing is certain: we will guarantee that our convenience shop sells only high-quality and
reasonably priced products (home necessities). As a result, we've strategically located our
convenience shop to serve the residents of D-Ground – Faisalabad.

We have performed market research and have developed an understanding of what our target
audience expects from us. We are in the business of selling products (retail home necessities) to
the following demographics.

Households Bachelors and Spinsters Corporate Executives

Businesspeople About to wed couples Expectant Mothers

Sports Men and Women Students Tourists

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The Faisalabad Mart – Business Plan

MARKETING MIX

Products

These are the products that the Faisalabad Mart will offer:

Pre-cooked meals
Pasta, pizza, sandwiches, noodles
Bread and Bakery products
Bread, cake, bagels, dinner rolls
Personal Care
Shampoo, shaving cream, soap, hand soap
Snacks
Chips, nuts, chocolates, candy, ice cream
Beverages
Bottled water, canned drinks, coffee, tea, juice, soda, wine, beer
Canned Goods
Fruits, vegetables, sauces, condiments
Dairy
Cheese, eggs, milk, yogurt, butter
Cleaners
All purpose, laundry detergent, dishwashing liquid and detergents
Over-the-counter medicines

The Faisalabad Mart will also offer pick-up and delivery

services

Price

Pricing is a critical factor that gives convenience stores and retail business businesses a
competitive edge; it is natural for consumers to seek out locations (convenience stores) in which
they can purchase items / household goods at a discounted price, which is why major players
inside the convenience store / retail sector like to attract a large number of consumers.

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The Faisalabad Mart – Business Plan

We recognise that we will never be able to compete with larger shops and malls, and we will
guarantee that the pricing of all products sold in our bottle shop are competitive with those
offered by other liquor retail businesses at our level and in our area..

Placement

The Faisalabad Mart will be located in the vicinity of the D-Ground, Faisalabad.

Promotion

The Faisalabad Mart brand will focus on the Company’s unique value proposition:

Convenient location

Significant personal attention

Moderate price point

Friendly, customer-focused environment

Individuals working and/or residing within a 10 kilometre radius of the Faisalabad Mart are
expected to be its target market. The mart's promotional plan for reaching out to these folks
includes the following::

Local Publications
The Faisalabad Mart's launch will be announced few weeks in advance via publicity pieces in
several local media and magazines. Regular ads will be run to ensure continued visibility in key
markets..

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Community Events/Organizations
The Faisalabad Mart will advertise itself through the distribution of promotional materials and
participation in local community activities such as student fairs, festivities, and athletic events.

Commuter Advertising
By paying workers to carry placards alongside, we will draw attention to the Mart. Advertising
on highly frequented commute routes enables you to inform a big number of working persons
about the store's opening.

Customer Loyalty Programs

The Faisalabad Mart will develop a successful customer loyalty programme, complete with
special offers and vouchers, to entice its best customers to return time and time again.

Ongoing Customer Communications

The Faisalabad Mart will publish a weekly flyer promoting convenience store specials.

Prime Competition

Our prime competition is very large key accounts and grocery stores of Faisalabad. This includes

 City mega mart

 SB store
 Bambino mart
 Family mart
 China Mart

Here is the geographical overview of our prime competition in the area of D-Ground.

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Our competitive advantage

The Faisalabad Mart will enjoy several advantages over its competitors. These advantages
include:

Location
The Faisalabad Mart is conveniently located in the town's central business district, making it
easily accessible to train passengers, local office employees, and pedestrians. There is enough
parking (in contrast to the bazaars around the clock tower), which makes it convenient for clients
to shop the business..

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Affordable price
The store also offers pick-up and delivering options, allowing it to expand its market reach even
further.

Management
The management team of the Faisalabad Mart has decades of sales and management expertise,
which enables it to advertise to and service clients considerably more sophisticatedly than
competitors..

Relationships
Our management and founder have lived in the neighborhood for over two decades and are
familiar with all of the community leaders, newspapers, and other influences. As a result, The
Faisalabad Mart will have an easier time establishing brand recognition and establishing a first
client base.

ORGANIZATIONAL PLAN
The Faisalabad Mart does not intend to open a convenience store in the manner of a typical mom
and pop establishment on a street corner; rather, we intend to open a conventional convenience
store which will serve as a one-stop shop for household needs, and that is why we will ensure
that the proper structure is in place to support the kind of growth we have experienced in the last
few years. We will guarantee that we recruit only competent, honest, customer-centric
individuals that are willing to work with us to develop a profitable firm that benefits all
stakeholders.

Indeed, profit-sharing arrangements will be made accessible to all our management personnel
and will be based on their success over a five-year period or longer, particularly when we begin
selling franchises or operating convenience store networks..

As a result, we've chosen to employ skilled and capable individuals to fill the following roles..

Sales and
Information
Marketing
Technologist
Manager
Chief Executive
Store Manager
Officer (Owner)
Merchandize Accountants /
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Cleaners
The Faisalabad Mart – Business Plan

Personnel Plan

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FINANCIALS

Key Assumptions

Our first predictions indicate a higher profit than is practical. We plan to update often in order to
handle cash flow related to different short-term forecasts, not long-term assumptions. The benefit
of approaching forecasts in this manner is that it provides for a buffer for actual costs when they
arise. We are less lucrative but will have the resources to continue growing and prospering. Here
are some of our business's assumptions.

- There are no natural disasters like the COVID’19

- There are no policy changes by the government about the convenience stores
- The taxes do not increase
- There are no unrealistic market challenges like unanticipated price hikes etc.

Startup Expenses

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Business Financing

The business will be finances by two main parties, the owners and the bank. The Faisalabad Mart
will obtain a loan of 50% of its financial requirements from the bank and the rest will be paid by
the owners.

Income Statement

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Balance Sheet

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IMPLEMENTATION

Finalize the Hire and train

location initial staff Launch
Month - 1 Month - 3 Month - 5

Design and build Kickoff of Reach break-even

out the mart promotional Month - 6
Month - 2 campaign
Month - 4

RESOURCE ALLOCATION

Description Resource allocation

Building and Assets 40%

Marketing 20%

Business Operations 20%

Staff and others 20%

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CONCLUSION
The Faisalabad Mart is going to be one of the key marts in Faisalabad, especially in the D-
Ground. Our business strategy and experience of the owners will make sure that everything is
done correctly and in a timely manner. The success of the business is largely dependent on the
execution of the business strategy. Once the first location succeed, the Faisalabad Mart will all
set to target other locations in the Punjab region.

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