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Company Summary:
Maruti General Store is a premier regional grocery retailer based
in Vdodara City. It is doing business more than 10 years and Maruti
General Store do sales more than 130 private label and national brand
products to more than 90 independently owned products.
Company History:
In 2001 bhai was build-up or forming a small store named Maruti
General Store .It is a neighborhood store and in 2005 he was expanded
his business & make big store. The store has is at convenient place.
Company Ownership:
The Maruti General Store is a Sole Proprietorship. Currently it will
be owned and operated by Mr.Arvind Prajapati & His Father.
Location:
The store has located at the ideal store location for the operation.
The store is located at the Vasna road.The store is only selling the
grocery products. The Store is fulfilled all the customer need.
Hours of Operation:
Store hours will be 7 days a week from 08:00 A.M. until 09:00 P.M.
A food stamp policy along with other policies will be in replace.
Start-up Summary:
Start-up costs will be financed through a combination of owner
investment, short-term loans, and long-term borrowing.
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Retailing in India is gradually inching its way to becoming the next
boom industry. The whole concept of shopping has altered in terms of
format and consumer buying behaviour, ushering in a revolution in
shopping. Modern retail has entered India as seen in sprawling shopping
centres, multi-storeyed malls and huge complexes offer shopping,
entertainment and food all under one roof.
Initially, this was about Indian corporate houses rolling out malls
and supermarkets, but with Wal-Mart coming into the Indian market, the
era of the superstore is dawning. Unlike the Kirana stores that served us
for decades, this new breed of retail chains is heavily dependent on IT.
Industry analysis of the Indian retail sector:
Modern retailing has entered India in form of sprawling malls and
huge complexes offering shopping, entertainment, leisure to the
consumer as the retailers experiment with a variety of formats, from
discount stores to supermarkets to hypermarkets to specialty chains.
However, Kirana still continue to score over modern formats primarily
due to the convenience factor.
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huge savings for the farmers as well as for the nation. The government also
stands to gain through more efficient collection of tax revenues. Along with the
modern retail formats, the non-store retailing channels are also witnessing
action with HLL initiating Sangam Direct, a direct to home service. Network
marketing has been growing quite fast and has a few large players today. Gas
stations are seeing action in the form of convenience stores, ATMs, food
courts and pharmacies appearing in many outlets.
In the coming years it can be said that the hypermarket route will
emerge as the most preferred format for international retailers stepping into
the country. At present, there are 50 hypermarkets operated by four to five
large retailers spread across 67 cities catering to a population of half-a-
million or more. Estimates indicate that this sector will have the potential to
absorb many more hypermarkets in the next four to five years
Traditionally, the small store (Kirana) retailing has been one of the
easiest ways to generate self-employment, as it requires minimum
investments in terms of land, labour and capital. These stores are not
affected by the modern retailing as it is still considered very convenient
to shop. In order to keep pace with the modern formats, Kirana have
now started providing more value-added services like stocking ready to
cook vegetables and other fresh produce. They also provide services
like credit, phone service, home delivery etc.
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The organized retailing has helped in promoting several niche
categories such as packaged fruit juices, hair creams, fabric bleaches,
shower gels, depilatory products and convenience and health foods,
which are generally not found in the local Kirana stores. Looking at the
vast opportunity in this sector, big players like Reliance and K Rahejas
has announced its plans to become the country's largest modern
retainers by establishing a chain of stores across all major cities.
Apart from metro cities, several small towns like Nagpur, Nasik,
Ahmedabad, Aurangabad, Sholapur, Kolhapur and Amravati as
witnessing the expansion of modern retails. Small towns in Maharashtra
are emerging as retail hubs for large chain stores like Pantaloon Retail
because many small cities like Nagpur have a student population, lower
real estate costs, fewer power cuts and lower levels of attrition.
However, retailers need to adjust their product mix for smaller cities, as
they tend to be more conservative than the metros.
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Challenges faced by this sector:
The industry is facing a severe shortage of talented professionals,
especially at the middle-management level.
Most Indian retail players are under serious pressure to make their
supply chains more efficient in order to deliver the levels of quality and
service that consumers are demanding. Long intermediation chains
would increase the costs by 15%.
The available talent pool does not back retail sector as the sector
has only recently emerged from its nascent phase. Further, retailing is
yet to become a preferred career option for most of India's educated
class that has chosen sectors like IT, BPO and financial services.
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The retail sector does not have 'industry' status yet making it difficult
for retailers to raise finance from banks to fund their expansion plans.
Government restrictions on the FDI are leading to an absence of foreign
players resulting into limited exposure to best practices.
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While many like Wal-Mart, JCPenney, and GAP have been procuring
from India for a long time, those in the food business and apparel industry
have also tried to work their way around by setting up franchises and
license agreements with local players respectively. For retailers like Wal-
Mart setting up a wholesale outlet like Sam's Club is certainly the way out.
Segment analysis:
The structure of Indian retail is developing rapidly with shopping
malls becoming increasingly common in the large cities and
development plans being projected at 150 new shopping malls by 2008.
However, the traditional formats like hawkers, grocers and tobacconist
shops continue to co-exist with the modern formats of retailing. Modern
retailing has helped the companies to increase the consumption of their
products for example: Indian consumers would normally consume the
rice sold at the nearby Kirana
Analysis of Customers
In the past few years the whole concept of shopping has been
altered in terms of format and consumer buying behaviour. With the
increasing urbanization, the Indian consumer is emerging as more trend-
conscious. There has also been a shift from price considerations to
designs and quality as there is a greater focus on looking and feeling
good (apparel as well as fitness). At the same time, the Indian consumer
is not beguiled by retail products which are high on price but
commensurately low on value or functionality. However, it can be said
that the Indian consumer is a paradox, where the discount shopper
loyalty takes a backseat over price discounts.
Maruti General Store is proving all the products for all the people.
They are not departing any segment .They have all the types of products
for all the customers. All the products satisfy needs & wants of the
customers. They personally take care of them. And they are also
providing some suggestion about the products to the customers. Today
customers’ want hundred percent returns of their hard earn
money.Maruti General Store is give best return to their money.
Maruti General Store Was Small store in a past. Now it becomes big
general store with varieties of multinational brands. Maruti General Store is
take care of their loyal customer & give them special discount .The Store
will also give discounts to their new customer &build up relationship with
them. And also create goo brand image in the mind of the customers.
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Consumer behaviours have changed over the years; this is shown
by consumers today purchasing a more healthy variety of products, as
information today is known about products that was not known many
years ago. Factors such as these changes the way we perceive and
value products, as we now are more knowledgeable as well as
manufacturers having by law to print the ingredients and content of the
products ingredients on the back of most food products, allowing
consumers to become more educated. The typical consumer today
watches what they eat; they are more aware and exposed to factors that
have brought about Changes in Consumer Behaviour.
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The roles of the government and consumer groups are all widely linked
and aim to inform the public consumer about the safety of products.
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“All marketing decisions are based on assumptions and
knowledge of consumer behaviour," (Hawkins and Mothersbaugh,
2007).
Today we are living in the twentieth century, & this the age of
competition. Today we find competition in each & every place. The
business who wants to survive in this competition, it has to provide best
services & give best solution of the customers’ problems. Today in every
sector nobody has Monopoly.
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Today, Retail sector has a lots of opportunities & lots of ways of
growing. But with these opportunities Retail sector also have tough
competition .To remain into the market ,marketers has to understand
many things .And in this competitive era Marketers have only few
choices .If they want to stay in the market .They have to understand
customers needs, wants & demand & providing solution or services for
them. If they are fail to do that they have to leave the market.
& pressure of providing good services to the customers. Today many malls
& high per markets open in the India .so; they are giving tough
competition to the general store. If the Maruti General Store is failing
to create good image in the mind of the customer .They have to
leave the market. The high per markets provide best facilities & give
best solution of customers query &requirements. If they have to do
good business, they have to follow certain things, which give them
proper idea about their current market position. To remain in the
competition The Maruti General Store has to do their SWOT
Analysis. And also do analysis of their Internal Environment
& External Environment.
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These are the questions for the store owner for making good internal
environment of store & for to remain in the competition.
There are so many directly & indirectly competitors are in the retail
business, for the Maruti General Store There so many small & big
competitors. The competitors of The Maruti General Store are as follow:
Strengths:
Demographic favour.
Shopping convenience.
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Weaknesses:
Opportunities:
Potential for investment.
Locational Advantage.
Sectors with high growth potential.
Fastest growing format.
Rural retail.
Threats:
A new competitor in your home market.
Price wars with competitors.
A competitor has a new, innovative product or service.
Inflation.
Poor inventory turns and stock availability Measures.
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Strategy
Strategy is a very important part of the business plan. Building a new
store or undergoing expansion can be a tremendous challenge for retailer.
Strategy helps the Businessman in growth & development of their
business. The strategy of Maruti General Store exploits their advantages
over the competition (location, convenience, and high quality) with
carefully-tracked milestones for growth. In the start-up phase it is a central
task of the marketing concept to establish a name Recognition and own
trade mark. Later on the strategy will primarily be targeted to gain new
Customers and create customer loyalty of repeat customers.
The Maruti General Stores competitive edge will be the lower prices
they will charge to their customers and the novel purchasing experience
that will draw shoppers. The most critical element of The Maruti General
Store success will be its marketing and advertising. In order to capture
attention and sales The Maruti General Store will use prominent signs at
the store locations, billboards, media bites on local news, and radio
advertisements to capture customers. Many of the initial customers will be
drawn to the unique nature of the store and will then have the opportunity
to realize the cost savings of The Maruti General Store. They expect an
average 25%increase in sales from year to year. This may seem very high,
but considering the level of initial sales and the growth possibilities,
management actually considers this to be achievable.
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Marketing Plan:
Marketing plans are vital to marketing success. They help to focus the
mind of companies and marketing teams on the process of marketing i.e. what
is going to be achieved and how we intend to do it. There are many
approaches to marketing plans. Marketing Teacher has focussed upon the
key stages of the plan. It is contained under the popular acronym AOSTC.
Competitive Edge:
Maruti General Stores’ competitive edge will be the lower prices they
will charge their customers and the novel purchasing experience that will
draw shoppers. In the convenience store industry, low cost and availability
are the two success criteria. They plan to create these advantages in a
new, high-tech environment that will retain customers.
Marketing Strategy:
The most critical element of The Maruti General Stores success
will be its marketing and advertising. Convenience stores serve the
entire purchasing population of its geographical area but focuses on
customers who need to purchase items outside of normal working hours
such as swing shift employees and quick shoppers looking for snacks
and related items.
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In order to capture attention and sales Maruti General Store will use
prominent signs at the store locations, billboards, media bites on local
news, and T.V advertisements to capture customers. Many of the initial
customers will be drawn to the unique nature of the store and will then
have the opportunity to realize the cost savings of Maruti General Store.
Since automated shopping is still in its infancy, the firm expects to invest a
great deal of its available cash and revenues in marketing efforts.
Sales Strategy:
The Maruti General Store will be a stand-alone, with good facility;
they have an attractive storefront with their low prices and easy-to-use
system. They believe that this in itself is its own seller. One critical
procedure to ensure top customer service and reliability will be
establishing a method for keeping enough inventories of all their
products. They will be using industry data on inventory for other
convenience store chains to assist people.
Sales Forecast:
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Sales Forecast of Maruti General
Store
Sales Year -1 Year-2
Drinks 18,00,000 22,00,000
Snacks 12,00,000 15,00,000
General Grocery Items 10,00,000 12,00,000
Others 8,00,000 11,00,000
Total Sales 48,00,000 60,00,000
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The Maruti General Stores current position is very good, with the
sales turnover of Rs.2, 00,000 per month but with the expansion of the
store, they want to achieve sales turnover of Rs.4, 00,000 per month.
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Operation /Design & Development plan:
The Maruti General Store is turn into the Big General Store from
the Small Kirana shop. So all the operation will change & the
development plan is also changed, these are the following functions
required to run the business.
The Maruti General Stores current position is very good & they have
some milestones in their mind. They worked hard to achieve their
milestones. The stores current sales turnover is Rs.2, 00,000per month.
And they want to take that turn over to Rs.4, 00,000per month in the
next financial year.
The owner of the store personally taking care of the quality of the
products &services provide by the store. If they will maintain their quality
of the products &services, they will definitely achieve their milestones.
The developments of the store rely on the quality of the services
provided by the Store.
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Personal plan:
The Maruti General ' store will operate virtually 12 hours a day 7
days a week. Although the store’s opening hours will be officially 08:00
a.m. to 09:00 p.m. Assumptions regarding personnel have been made
for year 1 & year 2 as follows:
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Staffing Plan:
When it was a small Kirana Store there were only two persons to
handle the customers, but in this general store the store owner hiring
five people of staff. Maruti General Store is hiring three sales persons
those are completed their graduation & having knowledge of computer.
One Accountant from background of commerce degree & having
knowledge of computer. One Store Cleaner for Maintaining the
Cleanliness of the store.
The sales persons only have to handle the customers and help them to
choose their products. They don’t have to interfere in other department
&operations. An Accountant has only work of maintaining the accounts &
inventories of the store. These are the key result areas of the staff.
There is only one investor &Owner of the Maruti General Store that is
Mr.Arvind Prajapati. There is no any professional advisor for the store.
All the hiring, staffing, selection & decision making done by the owner
itself of the Maruti General Store.
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Job Profile & Educational Background of Employees of the
Maruti General Store
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ORGANIZATION CHART OF “MARUTI
GENERAL STORE”
YOGESH WAR GENERAL STORE
STORE OWNER
ACCOUNTANT
STORE CLEANER
/DELIVERY BOY
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Financial Plan:
Financial Planning is a roadmap to realise and achieve financial
goals in life. The process of financial planning involves identifying the
financial goals in life, based on the person’s financial position and risk
profile charting out a feasible plan to a achieve those goals. Financial
Planning includes identifying goals, making the plan, allocating
resources and regular review.
The Maruti General Stores starts with their budgeting program that
sets sales goals, establishes payroll budgets, and creates criteria for gross
margin, shrink, expenses, and profit. Exception reporting directs operations
in the right direction, saving time, and measuring results. They will manage
and grow their store with a full range of financial services that include two
years financial planning, Store valuations, estate planning, buying/selling of
store, and financing assistance. It will save their valuable time and money
plus the headaches and worry often associated with complex money
matters. From the store .They will have a complete portfolio of financial,
accounting, and payroll services, including comparative operating
statements, bank reconciliations, sales tax returns, payroll tax returns,
periodic and operational review, cash flows, break-even analyses, financial
projections, wages, taxes, deductions, check printing,
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and deposit advice. It is these kinds of thorough information and
accurate recordkeeping that allow The Maruti general store to make
sound business decisions for the future.
Capital Investment:
The Start up funding of Maruti General Store was of Rs. 45, 00,000
in which they have invested Rs. 20, 00,000 for the stock & other
expences.And remaining was being in the bank. So, they have a cash
on hand is Rs.25, 00,000.
They will use that cash in the future for the other major operation of the
Store, as per the advice of the experts & as per the requirement of the store.
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Break Even Analysis (General Assumption not realistic)
Break-even Analysis
Monthly Revenue Break-even Rs. 3,00,000
Assumptions:
Average Percent Variable Cost 25%
Estimated Monthly Fixed Cost Rs.20,000
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Profit & Loss Statement:
The Profit and Loss Statement is also called an Income
Statement. As you might imagine, the income statement provides some
hints about how efficient the young firm is being run. Typical
components found in an income statement are net sales, the costs of
goods sold, the costs of inventory if applicable, and regular expenses
such as office rent, payroll, supplies, etc. When both positive and
negative finances are displayed on an income statement, key
components contributing to profit or loss for the period can be identified.
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Balance Sheet.
The Balance Sheet has two main purposes; (1) Listing the assets
of your company and (2) Listing the liabilities of your company. Some
examples of assets that might appear in a balance sheet are cash on
hand, accounts receivable (amounts owed to your firm), furniture,
company vehicles, etc. Some examples of liabilities that might appear in
a balance sheet are accounts payable (amounts your firm owes to
others), loan amounts payable within a year, your equity investments
made, etc. In a typical start-up firm, owners' investments may be
temporarily shoring up the lack of sufficient accounts receivable.
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Conclusion
Over the last few years, retail has become one of the fastest growing
sectors in the Indian economy. The organized retail however is at a very
nascent stage though attempts are being made to increase its proportion to
15-25%by the year 2011bringing in a huge opportunity for prospective
players. The sector is the largest source of employment after agriculture,
and has started to penetration into rural India generating more than 10% of
India’s GDP.
Modern retailing has entered India in form of sprawling malls and huge
complexes offering shopping, entertainment, leisure to the consumer as the
retailers experiment with a variety of formats, from discount stores to
supermarkets to hypermarkets to specialty chains. However, kiranas still
continue to score over modern formats primarily due to the convenience
factor.