Business Plan - Shrunga Mehta

Business Plan
Submitted to: Mr. Bhaskar Banerjee
Sub By:Shrunga Mehta
Batch – 2
FD – 7
Contents















Business Plan-Prologue………………………………………………………..3
Background of the entrepreneur……………………………………………...4
Business idea…………………………………………………………………….5
Vision Statement………………………………………………………………...5
Mission Statement……………………………………………………………….5
Business Goals…………………………………………………………..………5
SWOT Analysis…………………………………………………………………..6
Environmental Analysis………………………………………………………..7
Market Research………………………………………………………………...8
Sources of Finance……………………………………………………………...8
Business Strategies……………………………………………………………..9
Service portfolio………………………………………………………………….9
Operation plan…………………………………………………………………….9
Company Hierarchy………………………………………………………………9
Financial Forecasts……………………………………………………………..10
Name of the business: Krishna VM Services
Official address: Krishna VM Services,
D-204Indraprasth -5,B/H HDFC Bank
Pradhladnagar Abad 380051
Gujarat
Ownership pattern of the business:
Single Owner
Names and addresses of the owners: Shrunga Mehta,
D-204 Indraprasth -5,B/H HDFC Bank
Prahladnagar Abad 380051
Gujarat
Nature of the business: Services Provider.
Background of the entrepreneur:
I being a student of NIFT, I have knowledge in almost all the related field to
fashion. Fashion not only means creating fashionable cloths but also displaying
them in such a manner that consumer have to buy them.
I personally have interest in knowing the retail industry and also have an want to
do my career as Visual Merchandiser.
Business associate:
KinjalDesai:
Had worked as manger Lifestyle London,
Had worked as Visual Merchandiser, shopper Stop Hyderabad&
Right now working at Head – Marketing & Business Development, Knish
Technologies
Business idea:A freelancer outsourcing store which does visual merchandiser (VM)
from a local store to a brand. The Basic Concept here is that when the visual
merchandising is very important part to attract consumers. With the help of VM by just
adding little money the store owner mangers getting more profit than the money used.
Vision Statement: To provide Holistic VM Solutions to the retail industry by creating
ideas turn into magic.
Mission Statement: To attain the Numero Uno position among the VM Outsourcing
Service providers.
Business Goals:



To become a preferred VM solutions partner for large and small retail
businesses.
To be profitable from the first year of operations.
To build an effective client base across the country by delivering high quality VM
solutions leading to growth in their business.
SWOT Analysis
Strengths:




Have in-depth design knowledge.
Have a team of experienced
designers & on-site executioners.
Will provide end-to-end solutions
related to VM including printing &
props.
Have a team of trainers to provide
on-site training for retail VM
standards
and
merchandise
presentation.
Opportunities:



There has been an exponential
growth in the no. of retailers in
India.
Smaller retailers can’t afford to hire
individual VM resources.
Very less no. of VM services
providers in India currently.
Weaknesses:

Don’t have industry contacts to get
work from the word go.
Threats:


Bigger retailers have moved away
from VM outsourcing and have their
own VM team.
Difficult to get an entry in the
competitive organized retail market
as the bigger players already have
long term contracts with exiting VM
outsource companies.
Environmental Analysis:

Competitive Factors: There are only 5 recognized VM services providers
across India leaving a huge opportunity for a new player in this segment. Due to
the level of expertise needed to provide such services, the competition in this
segment will remain low.

Political Factors: Going forward, if there are more relaxations with respect to
the FDI (Foreign Direct investment) policy, there will be further growth in the
number of retailers leading to bigger opportunities in this segment.

Economic Factors:With a general slowdown in the economy due to weak rupee
and high inflation, larger organizations may move towards hiring their own VM
resources in order to control their cost.

EnvironmentalFactors: NO direct impact on environmental.

SocioculturalFactors:With the increasing awareness and expectation of the
modern costumers, it has become imperative for the retailers to maintain a high
standard of displays, look and feel of their stores .Hence, there is a huge
potential for VM services providers.

TechnologicalFactors:With the continuous improvement in technology , the
standard of VM Concept implementation will improve.

Legal Factors: No major issues with the current laws. All relevant licensing &
statutory will be complied.
Market Research:





Indian retail is expected to grow to $ 900 billion by 2014.
Currently the share of organized retail is only about 5% to the total retail market.
This share will grow to 10-12% by 2020.
With liberalization in the FDI norms, there will be an increase in the no. of
international brands entering the Indian retail market.
Currently, companies spend only about 0.5% of their total cost on VM. With the
increasing importance being given to the VM parameters in modern retail,
companies will increase this spends to about 0.8-1%.
As on date there are only 5 major VM service providers who provide only VM
concept implementation services. There is a void to be filled by a holistic service
provider in this segment.
Sources of Finance:



Personal saving
Friends and relatives
Business loan
Business Strategies:






Create a portfolio of mock VM ideations for different seasons, festivals, events
and promotions. Advertise and promote these through our website & various
social media.
Outreach the potentials clients via various marketing techniques like direct
marketing, internet marketing, social media and business networking.
Create a base of all sub-vendors for the services provided by us namely props,
printing & raw material sourcing.
Create special all-inclusive packages for clients who hire us for a complete VM
solution.
Have specialist consultants who will be available for catering to client queries or
customization of their requirements.
Have a specialized team of on-site implementers to ensure on-time delivery of all
site executions.
Service portfolio:









Design creation for retail space.
Window design creation and implementation.
In-store VM concept design and execution.
Merchandise presentation.
Event concept design and execution.
Sourcing of VM Martials and props.
POS (point of sale) communication, design and execution.
All types of collateral art work creation and execution.
Training – Retail staff training for VM & Merchandise presentation.
Operation plan:

Business requirements :
o
o
o
o
o
Office space incl. storage – 1000 sft
Mannequins, bust forms, etc. – 20
Podiums – 6
Office Equipment & IT infrastructure
Skilled Personnel
 Marketing Plan :
o Company Launch – Press/Digital Media coverage, Social Media coverage.
o Ongoing Marketing – Direct Marketing, Internet Marketing, E-mail
Marketing, Social Media Marketing.
Company Hierarchy
CEO
Design Team
Execution
Team
Consultants &
Trainers
Sales &
Support Team
Financial Forecasts:
Business Forecast
Parameter
Average Revenue per Client /
Location
Average No. of locations / Client
Total Revenue per Client
Average No. of Clients / Year
Total Revenue per Year
Year 1
Year 2
Year 3
Year 4
Year 5
200,000
10
225,000
10
250,000
15
275,000
15
300,000
20
2,000,000
5
2,250,000
10
3,750,000
15
4,125,000
20
6,000,000
25
10,000,000 22,500,000 56,250,000 82,500,000 150,000,000
Gross Profit Margin @ 25%
2,500,000
5,625,000 14,062,500 20,625,000
37,500,000
Costs @ 15%
1,500,000
3,375,000
8,437,500 12,375,000
22,500,000
Net Profit Margin
1,000,000
2,250,000
5,625,000
15,000,000
8,250,000