Entrepreneurship

CIA 3
Assignment to be submitted in partial fulfillment of the requirements
for the degree of master of business administration

Submitted by
Vinay Kumar Shivapur (2127459)

Submitted to
Dr. Hemalatha R

School of Business and Management

Christ (Deemed to be University)
Bangalore

January 2023
Feasibility study
The following presents a picture of the feasibility of the idea and is divided into the following
sections:

 Market Analysis
 Financial Analysis
 Technical Analysis
 Legal and Administrative Analysis

Market Analysis
The credit profile of organised jewellery retailers in India is anticipated to remain favourable
over the medium term, according to a news release from ICRA, notwithstanding modest
margin contraction. Established businesses are increasing their retail presence to take
advantage of these positive trends as the jewellery industry transitions from unorganised to
organised retail. ICRA's vice president and co-group head Kaushik Das stated in a press
release that "the industry growth is projected to decelerate to 5% YoY in FY2024 due to the
high base of FY2023, coupled with the developing macro-economic backdrop."

Although, according to the report, "the revenue of organised jewellery retailers is likely to
grow at a much higher rate of 10% YoY in FY2024, supported by the accelerated shift in
market share to the organised sector driven by tighter regulations, change in consumer
preferences towards branded jewellery, and planned expansion of organised jewellers into
Tier 2 and tier 3 cities."

The gold jewellery retail sector is predicted by ICRA to grow by about 15% this fiscal year,
with the overall outlook remaining stable. ICRA estimated data for its sample set of 15
significant organised jewellers and came to the conclusion that players in the sample set
should continue to have favourable debt protection measures and liquidity positions.

Despite the probable decrease in margins and partially debt-financed store expansions being
undertaken, this is backed by better earnings predictions resulting from greater scale of
operations. most organised jewellers have recommenced expansion with an emphasis on
capturing the untapped market in Tier 2 and tier 3 cities in H1 FY2023.In the following 12 to
18 months, "the overall store count of ICRA's sample set is likely to expand by 10%,
translating into market share gains and economies of scale."
Target Market

VA & Sons Jewellery Shop with new infrastructure, designing of jewellery, watches, new
segments, and online jewellery shopping can target a wider range of markets.
Some potential target markets for VA & Sons Jewellery Shop could include:
 High-income individuals: These customers may be interested in luxury jewellery and
watches and may be willing to pay a premium for high-quality, unique designs. They
are likely to be looking for something exclusive and exclusive.
 Fashion-conscious consumers: This group may be interested in trendy, fashionable
jewellery and watches that complement their personal style.
 Gift buyers: Individuals looking for gifts for loved ones, such as birthdays,
anniversaries, or special occasions, could be a target market for your shop.
 Investors: They may be interested in buying gold as an investment.
 Online shoppers: With the availability of online jewellery shopping, the shop can
target a larger audience who are comfortable with online shopping, who are looking
for convenience and flexibility.
It's also important to consider the location of the shop and the demographics of the area. If
the shop is located in a high-end shopping district or a luxury mall, the target market may be
more affluent and looking for high-end luxury goods.
It's important to conduct market research, such as surveys or focus groups, to gather more
information about the specific demographics, psychographics, and behaviours of your
potential customers in order to create a more targeted marketing strategy and make informed
decisions about what products and services to offer.
Market Segmentation
The market segments are very specific to Age group of 21-60 years, Income group of
Rs.30000 pm and above, Gender-female, Occasions on traditional basis, Geographical area
covering in and around Raichur and Gulbarga.

Demand for the product

- Cultural significance: Gold holds a significant cultural and religious significance in
India. It is considered auspicious and is often gifted or worn during special occasions
such as weddings, festivals, and ceremonies.
- Investment: Gold is also considered a safe investment option in India, and many
people buy gold as a hedge against inflation.
- Rising income: With an increasing number of Indians becoming affluent, there is a
growing demand for luxury watches and high-end gold jewelry.
Market Size
India's retail jewelry industry is anticipated to reach US$104.8 billion by 2026, expanding at
a CAGR of 10.5% from 2021 to 2026. The market is fuelled by elements like rising
disposable income, a rising interest in gold investing, and rising demand for diamonds and
other precious stones. The study further notes that one of the key factors anticipated to propel
the market is the expansion of e-commerce.

- Target Market = 20000 customers

- Penetration Rate = 45%
- Market size = 20000 x 45% = 9000 customers

Financial analysis
Means of financing

The information below, which examines the project's economic structure, explains the
project's startup costs and anticipated earnings. both family financing and bank loans.

1. Family financing: It refers to the practice of borrowing money from family members
or using family assets to fund a business or personal project. This type of financing
can include loans, gifts, or investments from family members, as well as the use of
family assets such as property or equipment.
2. Bank loans: It can be an effective debt financing tool for retail jewelry shops. They
can provide the necessary funds to purchase inventory, equipment, and cover
operating expenses. Additionally, the predictable and consistent nature of bank loans
can help retail jewelry shops plan for future expenses and budget accordingly.

Set-up Cost Requirements

Fixed Cost
Item Cost for 9000 Customers Total
Website Domain – 3000 18000
Website creation – 5000
Tools and analytics – 5000
Logo and designing - 5000
License
Logo Designing Designing of logo 5000
Training cost Training the employees to use the software 10000
Store Renovation Interiors according to the requirement 100000
Marketing Brochures- 5000 20000
Google ads campaign – 5000
 YouTube ads- 10000
Display cases Cases to display jewellery 65000
Display shelfs, Items to be showcased 60000
items
Chairs and tables Customers to be seated 100000
Branding Business cards – 2000 12000
Mugs, Files, and other goodies - 10000
Jewellery making 500000
equipment
Recurring Cost
Stationary Ledger books, receipts, and other stationery 40000
Shop Rent Rent in Patel Road 25000
Salary for 30000*3 90000
Designers
Salary for Sales 25000*4 100000
Staff
Packaging and 100000
shopping bags
Transport Transport of goods 50000
Taxes
Grand total (PM)

Projected profitability for Gold Ornaments:

With a given penetration rate of 45% and 9000 potential customers in and around Raichur
and Gulbarga, and considering the Gold Rate according to the prices in the market, we are
able to acquire at 5% cheaper than the actual price. Along with it, we also charge 10%
making charges.
We intend to buy 8kgs of Gold for *Rs 3800/Gm (which is sold at 4000) (for
calculation) every month
With this calculation, for 9000 potential customers considering a buy of 8 Kgs monthly and
sales of the same, at the gold price of Rs 4000 (for calculation), we can make a profit of
CP of Gold – 8000 * 3800 = 3,04,00,000
SP of Gold - 8000 * 4200 (4000+200) = 3,36,00,000
Profit = 3,36,00,000 – 3,04,00,000 = 22,00,000
Profit after Expenses =
Projected profitability for Luxury Watches:

Break-even point –
(The point at which total cost and total revenue are equal)

Total Fund = 466000

Revenue for 100 students = 70000

Breakeven Point = Fixed cost/selling price

466000/700 = 666

Therefore, at 666 students we break even.

Technical Analysis

The following talks about three components-

Inputs ------ Throughput------output

Input Analysis

Input analysis is primarily concerned with identifying, quantifying, and evaluating project
inputs, such as machinery and materials. Throughout the project's life cycle, you must ensure
that the proper kind and quality of inputs are available at the right time and at the right cost.
You must enter into long-term arrangements with potential suppliers, and you must develop
your supply sources in many circumstances.

As this is a service oriented projected there is no need of machinery and such, hence inputs
become the services and material needed for creating the MBA-Hack course.

The needed inputs will be:

- Designers
- Domain and Host provider
- Tie-up with corporate gifting
- Tie-up with printers and publishers
 - Tie-up with virtual platforms

Throughput Analysis
It refers to the value-adding production/operations you would do on the inputs. Typically, the
acquired inputs would go through multiple phases of transformation during the
manufacturing process. The problems that you would learn more about in later courses
include where to place the facility, what would be the sequence, what would be the layout,
what would be the quality control measures, and so on.

The inputs received will work on making the required content for the educational course and
optimizing it for the best result.

Output Analysis:

The use of inputs will create the following output:

- A website
- Logo and posters
- Gifts and goodies
- Text books
- EBook
- Teaching material
Operational Flow
The key steps in the operation flow are as follows:Marketing Plans

Identify colleges that provide UG courses

On accpectancecolleges
Contact such and send
of proprasal, in proposal
create of to
a schedule ourconduct
servicesthe
MBA
Delivery the-Hack
MBA course
-Hack course

Product: The product here is the MBA-Hack course that will be taught at UG colleges, The
course will use techniques such as gamification and story boarding that will make it stand
apart and be impactful at the same time. The course will have a duration of 1 day and will
contain the following:
Place
The service will be given as the UG college itself or will given to the UG students through an
online platform.

Price

Cost of running the program per student will be equal to:

- Text Book – 100

- E-material – 50

- Certificate – 20

- Training cost – 300

Total – 470 per student

Total – 47000 for 100 students

Charging the rate of 700 rs per student for one college with 100 students will equal to
revenue of 70000.

Promotion
The use digital marketing is what we mostly will look at, digital campaigns will involve:

 Social Media Marketing.

 Search Engine Optimization.
 Email Marketing.
 Content Marketing.
 Video Marketing.
 Web Advertising.

Creating an App
We also will create an app through which users can access our services individually rather
than through a college. This will enable us access to audiences not only in a mass but also as
an individual customer.
Future developments of our Business
 Aim to create a Mini MBA course for students
 Provide certified short-duration MBA courses
 Open an Entrepreneurship course for students
 Facilitate students in a physical class of our own.