Executive Summary

Business Description
Gift Shops are have made it easy to purchase, gift wrap and deliver goods to loved ones. Modern gift shops provide customers with the convenience of one stop gift shopping as they can personalize the gifts according to customer needs. For one to buy a gift one needs to locate the nearest gift shop. This is where they will be provided with a wide variety of gifts to choose from to suit the occasion. Wonder Gifts will provide customers within Cyberjaya and surrounding areas with gifts and related services that include personalizing, wrapping and delivery.

Mission Statement
Our Mission is to provide memorable gifts for everyone for any occasion at any time for both business and pleasure with the customer needs being a priority.

Goals
To provide gifts and all other services are related to gifts. Wonder Gifts will also provide gifts that will satisfy a varied segment of the market. To create awareness on the value of gifting and the benefits of gifting to individuals and businesses. To fill the gap or customer needs neglected by existing competitors. Sustenance and profitability are the key drivers that will allow for wonder gifts to grow and expand into other markets. To provide the best customer service so that customer loyalty is improved.

Objectives
To occupy at least 25% of the market share by 2013. To meet an annual sales target of 50,000 items by the end of the year. To expand into other towns and cities to increase market share and create awareness for Wonder Gifts in Malaysia. To be available for customers 24 hours a day, 365 days a year. To make profit.

Plan of Operation
Wonder Gifts will follow the following schedule for the year 2011 when entering the market.

Operational Plan
Task Selecting the location Designing the location Creating the website Hiring and training Advertising and Promotion Launch and Opening January \ February \ \ March April May June July

\ \ \ \ \

During selection of the premises a lot of factors had been taken into consideration. This includes the volume of traffic, availability of other facilities and amenities such as banks and supermarkets including convenience for customers to access the shop. The design of the shop is crafted to make the consumer feel at home. Different colours have been used to make it more colourful and attractive. The website which can be found at www.wondergifts.com has been developed in consistency to the colours of the physical shop. Hiring and Training, Marketing and opening will all be done by the end of July 2011. During operation a normal customer walking into a shop will include; meeting and greeting the customer with kindness. At this point the sales person should be offering the customer help without intruding too much of their space. The sales person should help the customer in selection by offering extra information about the services available such as delivery and wrapping. The customer is supposed to feel very comfortable within the shop. After the customer has selected the products and services they like it is the duty of the sales person to make sure that the customers needs are met. This includes wrapping as desired and wrapping as maybe be required. The sales person should proceed with the transaction and present the items to the customer. When ordering via telephone the sales person will take the order referring to the catalogue that is sent out to customers. The customer will be requested to quote a special number next to the item and quote other services as well as he/she may wish.

The customer should then leave their address and their details so that delivery can be made. The mode of payment can be upon delivery or the customer can walk into our store and make the payment. Website orders will be dealt with through a dedicated website. Customers will have to register online for them to be able to make orders and make payments via the website. Registered customers will then be able to log into the website. This is where they will select the items they like and other value added services. They will then proceed to add them to the cart and then proceed to submit the order and make payment. Payment can be made online through visa services and other e-commerce platforms. The items will be then be delivered to the customers preferred destination. During operation there will be special promotions and competitions every now and then to encourage customers to visit our store more often.

Management Team
The management team will be led by the founder of the company. He will handle all major decisions and strategic planning. They will be assisted by a Shop Manager who will be responsible for the day to day running of the business.
Managing Director

Bachelors Degree in International Business Management (Honours). He also worked as a consultant for startup businesses. He has vast knowledge in running a gift shop as he has in the industry for over 3 years now. He is one of the pioneers of customer focused businesses and products since the 1990s. Please refer to the curriculum Vitae and other documents attached with the appendix for more details. His duties include: The Managing Director should be able to make long term plans ranging from 3 years to 5 years. He/she will be expected to be able to come up with strategies to ensure profitability.

The Managing Director will also be responsible for the day to day running of the shop as this is a fairly small business in terms of the physical structure and logical structure.

The Managing Director will be required to make budgets accordingly as the business activities require. The Managing director will be responsible for forecasting the future and trends and make strategies accordingly in adherence to the objectives of the company.

Shop Manager

The Shop Managers tasks include but not limited to the following; Maintaining the inventory with the help of the shop assistants as the demand may require. The Shop Manager should be able to foresee changes in the industry so that he/she can advise the Managing Director on strategic planning. He/she will be responsible for the hiring and recruitment of new staff should the need arise. The shop assistants will be reporting to the Shop Manager. To monitor and supervise all the staff in the conducting of business activities. Monitor the daily activities and decide upon the appropriate course of action for the day, week or month. The Shop Manager will also be able to make short term tactical decisions which may range from day to a month.
Shop Assistants (2)

The Shop assistant will be responsible for servicing customers who come to visit the store. They will be responsible for the sales of items in the shop. Amongst selling the items they will also be expected to have some competency in gift wrapping to meet the customers requirements. Shop assistants will also be taking calls for those customers who wish to order our services over the phone through a special dedicated number. They will also take customer orders through the website.

Basic cleaning of the shop such as cleaning the shelves and the counters will be done by the shop assistants as necessary. They will also be responsible for monitoring the inventory and notifying the Shop Manager when necessary.

Industry Analysis
Gift Shops are places that offer small items that customers can buy and present to their loved ones. For somebody to give a present they first need to find the perfect product for their loved one. This is not an easy task as it is very difficult to know what a person likes. Gift shops offers specially crafted and designed items that are appealing to most customers as they are done professionally. This came about as modern lifestyles are much faster and busier leaving most people with little time on their hands. This service has made it possible for customers to find and personalize gifts all under one roof. There has also been a growing trend in the number of online gift shops emerging on the internet based businesses. This has offered more convenience for customer as businesses as the communication gap has been lessened. Most gift shops in the area only serve customers or individuals who are buying personal gifts. Most of the Shops which are located in the town center offer gifts intended at a young people. Their age ranges from 16-28. This is mostly university students living within the area as there are a number of educational institutions around. The last survey that was done in Cyberjaya indicated there was well over 25,000 residents in Cyberjaya. However more and more people live in a smaller world and even the older generation is adopting the modern lifestyle of young people. This has opened up new market opportunities of taping into a new market and expanding to offer services to a wider market. This number is said to be increasing exponentially as the town is rapidly developing. Residential houses are opening all around town and new businesses including businesses. Cyberjaya is also a center for most IT related companies as it provides such infrastructure. There has been a new trend of gifting that has been intended for the corporate world. This is still being neglected although the market for such services is growing. Nowadays companies are rewarding deserving employees with gifts such as reward coupons and other items. Some gifts can be offered from one company to give courtesy and promote

a warm and friendly atmosphere. Some of these gifts can be offered during company parties and awards for employees.

Competitor Analysis
Competitor Comparison
Competitor Alice Gift Shop Gifts Online Customizable Targeted at the market Convenient Location Value Added services Website Telephone ordering

Wonder Gifts

Wonder Gifts main competitors are Alice Gift Shop and Gifts Online. Please not that all these gift shops are located in Cyberjaya which will be our main area of coverage of market share. Alice gift Shop is located offers customers the ability to customize goods as they wish. This gift shop offers products ranging from cups, dolls, teddy bears and antiques. They do meet their intended market. However location has not been an advantage as they are located in a traffic congested area. This is an inconvenience for customers as they do not like to wait for long periods for their items. They do have a website but this has not been fully tapped into as their advertising methods are poor. Gifts Online offers customers the ability to customize products as they wish as well as they have website where customers can place orders and other services. They provide small gifts for special such as Jewelry and small dolls as this are not bulky an easy to transport. They also have greeting cards that can be personalized according to the customer requirements. However many customers are not aware of its existence as their advertising methods do not reach the intended market. Wonder Gifts will offer a wide variety of products ranging for chocolate treats and other delicacies for special moments and special occasion. Grooming products can also be found within the store. There will be a range of antique and souvenirs for customers who like to keep memories of places. Wonder Gifts has the competitive advantage of offering a well-rounded customer service experience that is both unique and unified.

The customer will have the ability to make orders in whichever way the wish. They can make their orders through our website; www.wondergifts.com, the telephone orders are done by referring to the catalogue which will be provided. They can also walk into any of our physical stores. Our adverting will be done in places of customer interest. This creates awareness for Wonder Gift products, promotion and other value added services that we offer. Another advantage that we will have over our competitors is the way our shop has been designed. It has been made to feel as comfortable as possible. Care will take to ensure that the customers fill as if they were in a home.

Marketing Plan
Product

Attention will be given to make sure that our products make the customer feel personal as most of them will be handmade products. We will have over a 100 different products for the customer to choose from and will cater for ages 0- 65. This ranges from toys for babies of different ages. Cards and other baby needs. Gadget preferred by the younger generations. Handy tools for fathers. All our products come with a 10% on the next purchase. Customers who are not satisfied with their purchases can bring back the original item with the receipt and they will get their money back within 30 working days or exchange for another product of the same value. Our products will be easily identified by our 100% recycled paper bag with our green on both the long sides. After confirming the order customers can receive their orders within an hour from time of order. If the customer wants to get a gift delivered at the exact time they want they will have to make orders at least 5 hours in advance. For bulky orders customers will have to make the order at least a day in advance.
Price

The total cost of ownership of our products will vary depending on the materials and items purchased. They will range from RM 1.00 to a thousand Rinngit. Due to special attention and detail given in preparing gifts according to the customers requirements our prices will vary. However there will be frequents sales to try and encourage customers to buy more. The price will not be too low as this can kill the profit margins as there is tough competition from well-established shops. Consideration has been taken to consider the price consumers can afford. As the customer can choose exactly what

they want and pay for exactly that. Customers will be able to save as they do not have to travel to purchase their products and they do not have to waste many on unnecessary.
Place

Since most of our products will not be bulky, they will be easily transported to wherever the customer wants. Our products will be available only in our store as they are very unique. Registered customers can also make orders through our website at www.wondergifts.com. They select the products they want and then add them to a virtual cart. After they have made their choices they proceed to check out via online money transfer and banking systems available via website. The products will then be delivered to the customers preferred address. A special dedicated number will be set up for telephone orders. A brochure shall be made available so that customers can quote product numbers to make their orders. In their case they have to make the payment when they come to collect their products unless prior payment or arrangement has been made.
Promotion

During the initial launch the product will be promoted via brochures distributed in various universities located in the vicinity. Some of the flyers will be left in shops, restaurants and other public places under proper arrangements. On the first stages of operation special promotions and discounts will be offered to attract customers to visit the shop. A Facebook fan page will be created to create more awareness through viral marketing. This will also serve as another channel of interacting directly with the customer. A twitter account will also be opened to broadcast major developments major specials and promotions. Registered customers will also get exclusive benefits and even more promotions.

S.W.O.T Analysis
Strengths: The Management and the team will be drilled to motivate them on giving a good forefront to attract and retain customers with high customer service to stay competitive in the market.

Gifts are well-thought to needs of consumers from almost every niche. Highest quality at the lowest price possible. Convenient location A wonder gift maximizes the use of technology tools and applications to stream line service delivery. This includes the internet and the integrated phone.

Weaknesses: As wonder Gift will be a new comer in the market. It will face tough competition from existing shops in the region. Customers are not yet aware of the existence of Wonder Gifts. Gift wrapping is quite a rare skill and therefore extra steps will be taken to ensure highly trained staff. Opportunities: The gift shop is rapidly expanding and Wonder Gifts will fully tap into this expansion of the market. More and more people are getting educated on the value of giving gifts to loved ones and even those for corporate purposes. Nowadays people are so busy and there is not enough time to find creative gifts with meaning all under one roof with the wrapping and personalized message. There is still a large segment of the market that is being neglected.

Threats: Recession and economic slowdown usually result in slow business activity. Existing companies could easily lower down prices.

Financial Plan
Projected profit and loss

Projected Profit and loss 3 years

Year 1

Year 2

Year 3

Revenue (Sales)

Sale of Gifts Value added services Deliveries

250000 70000 50000

700000 90000 100000

900000 120000 130000

Total Revenue Sales

370000

890000

1150000

Operating Expenses

Website Development Membership Development Personnel Capital Expenditures Consultation Service Promotion

3500 12000 100000 100000 1000 50000

200 6000 110000 260000 750 40000

300 6500 120000 275000 1000 50000

Total Operating Expenses

266500

416950

452800

Profit before taxes

103500

473050

697200

Taxes (10%)

10350

47305

69720

Net Profit

93150

425745

627480

Total Revenue (Sales)

1400000 1200000 1000000 800000 600000 400000 200000 0 Year 1 Year 2 Year 3

Total Operating Expenses

500000 450000 400000 350000 300000 250000 200000 150000 100000 50000 0 Year 1 Year 2 Year 3

Projected Cash Flow

Projected Cash flow Year 1 Cash Received Cash from operations Cash Sales Online Sales Telephone Orders Deliveries Value Added Service Subtotal from operations Additional Cash Received Investment By Owner Subtotal of cash received Expenditures Expenditures from Operations Personnel Consultation Service Promotion Subtotal Spent on Operations Additional Cash Spent Taxes Liabilities principal Repayment Purchase other current assets Subtotal additional cash spent Net Cash Flow Cash Balance Year 2 Year 3

100000 90000 60000 50000 70000 370000

400000 350000 5000 90000 10000 855000

450000 400000 5000 120000 130000 1105000

3000 3000

0 0

15000 15000

100000 1000 50000 151000

150000 800 40000 190800

160000 1000 45000 206000

37000 70000 26000 133000 89000 70900

85500 70000 23000 178500 485700 470000

110500

110500 803500 803568

Projected balance sheet

Balance Sheet Projection Beginning Assets Current Assets Cash in bank Stock Accounts receivable Total Current Assets Projected Year Year 1

50000 250000

500000 400000 15000 900000

300000

Fixed Assets Furniture Training Delivery Vehicle Total Fixed Assets Total Assets Liabilities and Equity Current Liabilities Accounts Payable Long-Term Debt Total Liabilities Owners' Equity Retained earnings - beginning Retained Earnings- Current Total Owners' Equity Total Liabilities & Equity

35000 20000 10000 65000 365000

60000 8000 10000 78000 978000

45000

0 45000

230000

230000 120000 350000

580000

700000

Conclusion

Appendix Glossary References