HOME OF DAILY NEEDS
Come in to get everything
Executive summary
Home of daily needs is a largest departmental store situated at Jorhat (Assam) providing all the
daily household items to the consumer at a competitive rate.
The retail sector in India is growing at a increasing rate. The Indian retail market is the fifth
largest retail destination all across the globe. It has been ranked as the most attractive emerging
market for investment in the retail sector in 2009. In the entire Gross Domestic Product of India,
the share of retail trade was between 8-10% in 2007, where presently it has touched around 12%,
and in all probability will touch 22% by the end of 2010. Consumerism is on the rise with the
rising trend of middle class segment in the country. The Indian consumer (retail) market, in all
probability, will grow four times by 2025. The value of India's retail market has touched US$
511 billion in 2008. India has escalated up to the 39th most preferred retail destination globally
in 2009 (in 2008, they ranked 44th).
Home of daily needs will emphasize on the middle and upper middle class family by providing
daily used products at a reasonable rate. The enterprise will cut the cost by cutting down the
intermediaries. The enterprise will provide hybrid quality of vegetables, fruits and other
commodities. The enterprise will contain FMCG products, cereals, vegetables, fruits along with
sale of liquor and medicines all under one roof. The enterprise will also provide special benefits
to older citizens and free home delivery service within 2kms.
Target Audience
Target Audience
Family
Individuals
Elder citizens
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We have forecasted our sales, gross margins and net profit for the next three years based on
continuous sale of products and services.
900000
800000
700000
600000
500000 sales
400000 gross margin
net profit
300000
200000
100000
0
2011 2012 2013
Objectives
Providing the target audience with high quality and cheap products
Development of the town by providing employment opportunity
Providing door to door service within a restricted area
Boosting the retail market in the town and state
Increase sales beyond Rs 15lakhs in next 5 years
Increase the net profit by 40% of sales by 2015
Run the business as a family-run and -oriented business with emphasis on truth, integrity,
quality relationships, fun, and giving back to the community.
Mission
To become the best department store in the town, based on product expertise, price, quality, and
level of service, by developing a long term relationship with our customers. Become the "family
expert" for daily products by treating customers like friends and family and by maintaining an
experienced, knowledgeable, and caring staff that can help the customer make the right purchase
for them, whether they are individuals or familes.
Vision
“To offer continuous value added products to our customers”
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Key to success
Relocate the existing retail store to a more densely populated, growing location.
Negotiate optimal agreements with the major suppliers that allow us to improve
margins, hold down costs, and maximize the control and turnover of our inventory.
Implement a state-of-the-art, computerized inventory management system to improve
inventory turnover and tracking
Uncompromising commitment to the quality of the end product
Successful niche marketing
Create an outside sales team which makes the customer aware of the products available
and services provided to them.
Ensure through daily management practices that the values of the department store
mission are followed, so that a successful and growth-oriented business is developed
and maintained.
Company summary
Home of daily needs is a privately owned department store located in the market place of jorhat.
The store sells quality product to the entire target audience comprising family, individuals and
elder citizens. The enterprise operates in a area of 6000sq feet for the department store and a
warehouse for the products.
The retail store is open Monday through Saturday from 10:00 am to 9:00 pm and on Sunday its
open from 10:30 am to 7:30pm. Orders are placed twice a week for all the daily requirements
except for vegetables and fruits which are done thrice a week.
Home of daily needs is a department store which is different from other retail outlet as it has a
unique service provided to the elder citizens. Free home delivery to elder citizens within the
town and for rest free home delivery within 3kms. Monthly discount voucher to elder citizens.
Provides polio drops to the infants and free vaccination services. Sales on every fourth Saturday
of the month. Products available are all the cereals, vegetables, fruits, FMCG products,
medicines and liquor.
The growth opportunities for our department store are many, including widening the product
offerings, relocating the retail store to a location that can tap into the fast developing residential
areas, staffing a sales force to aggressively pursue team uniform sales, and implementing a
consistent, integrated marketing plan.
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Proposed product information
Home of daily needs is a department store providing variety of products to the customers. The
store not only provide product to their customers but also provide needful and unique services
to the customers
The products provided to the customers are as follows:-
FMCG products
Shampoos
Head & shoulder
Pantene
Garnier
Dove
Clinic All Clear
Loreal
Herbal essence
Lux
pamolive
Soaps & hand wash
Dettol
Savlon
Lux
Dove
Pears
Cinthol
Lifeboy
Santoor
Breeze
Hamam
Margo
Liril
pamolive
Instant sticks
Darshan
Cycle
Jasmine
mangal deep
honey rose
sagar
gayatri
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face wash brands
Himalaya
Garnier
Clean & clear
Loreal
Dove
Vaseline
Nomarks
Nivea
Ponds
Clearsil
Body lotion & face cream brands
Vaseline
Ponds
Garnier
Loreal
Dove
Lux
Nivea
Himalaya
Deodorant brands
Axe
Wild stone
Garnier
Gillete
Eva
Ponds
Nivea
Set wet
Zuska
Fa
Spinz
Cinthol
Addidas
Nike
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Hair Oil Brands
Dabur amla
Parachute
Bajaj almond
Navratna
Vatika
Shalimar coconut oil
Hair & care
Talcum powder
Ponds
Axe
Dermi cool
Navratna
Nycil
Cinthol
Spinz
Zuska
Hair gel
Brylcreme
Parachute
Hybrid
Ganier
Set wet
Toothpaste and tooth brush brands
Colgate
Pepsodent
Close-up
Oral-B
Dabur
Cibca
Himalaya
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Biscuits and other eatable brands
Britania
Parle
Bisk farm
Nestle
Cadbury
ITC
United biscuits
Parle agro
Frito lays
Pepsico
Coca cola
Uncle chips
Haldiram
Leher
Local brands
Baby products
Jhonson & Jhonson kit
Nestle dairy products
Diapers
Other FMCG products includes: shoe polish, shaving kit for men, chocolates, soft drinks,
juices, food masalas, spices, ready to eat foods, honey, chavanprash etc
Cereals
Varities of rice
All kinds of dal
Atta & maida
Othe spices
Local food
All kinds of vegetables from the local farm or distributor, all kinds of fruits available on
the basis of season
All known liquor brands are available including average, good and premium drinks.
Medicines are also available and the vaccines
Services provided are: Free home delivery to elder citizens within the town and the rest
within 3kms, free vaccination service, polio drops to infants and also individual salesman
to elder citizens for helping them in buying there products.
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Industrial analysis
The Indian retail industry is divided into organised and unorganised sectors. Organised retailing
refers to trading activities undertaken by licensed retailers, that is, those who are registered for
sales tax, income tax, etc. These include the corporate-backed hypermarkets and retail chains,
and also the privately owned large retail businesses. Unorganised retailing, on the other hand,
refers to the traditional formats of low-cost retailing, for example, the local kirana shops, owner
manned general stores, paan/beedishops, convenience stores, hand cart and pavement vendors,
etc.
India’s retail sector is wearing new clothes and with a three-year compounded annual growth
rate of 46.64 per cent, retail is the fastest growing sector in the Indian economy. Traditional
markets are making way for new formats such as departmental stores, hypermarkets,
supermarkets and specialty stores. Western-style malls have begun appearing in metros and
second-rung cities alike, introducing the Indian consumer to an unparalleled shopping
experience.
The Indian retail sector is highly fragmented with 97 per cent of its business being run by the
unorganized retailers like the traditional family run stores and corner stores. The organized
retail however is at a very nascent stage though attempts are being made to increase its
proportion to 9-10 per cent by the year 2010 bringing in a huge opportunity for prospective new
players. The sector is the largest source of employment after agriculture, and has deep
penetration into rural India generating more than 10 per cent of India’s GDP.
Comparative Penetration of Organised
Retail(in %)
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120
100
80
60 Unorganised
Organised
40
20
0
USA Taiwan Malaysia India China Thailand
The Indian retail industry is the fifth largest in the world. Comprising of organized and
unorganized sectors, India retail industry is one of the fastest growing industries in India,
especially over the last few years. Though initially, the retail industry in India was mostly
unorganized, however with the change of tastes and preferences of the consumers, the industry is
getting more popular these days and getting organized as well. With growing market demand, the
industry is expected to grow at a pace of 25-30% annually. The India retail industry is expected
to grow from Rs. 35,000 crores in 2004-05 to Rs. 109,000 crore by the year 2010.
India is the 4th largest economy as regards GDP (in PPP terms) and is expected to rank 3rdby
2010 just behind US and China. On one hand where markets in Asian giants like China are
getting saturated, the AT Kearney's 2006 Global Retail Development Index (GRDI), for the
second consecutive year Placed India the top retail investment destination among the 30
emerging markets across the world. Over the past few years, the retail sales in India are
hovering around 33-35 per cent of GDP as compared to around 20 per cent in the US. The table
gives the picture of India’s retail trade as compared to the US and China.
Retail trade- India, US, and China
Trade($ billion) Employement (%) Shops ( million) Organized sector
share (%)
India 180-394 7 12 2-3
China 360 12 2.7 20
US 3800 12.6-16 15.3 80
The last few years witnessed immense growth by this sector, the key drivers being changing
consumer profile and demographics, increase in the number of international brands available in
the Indian market, economic implications of the Government increasing urbanization, credit
availability, improvement in the infrastructure, increasing investments in technology and real
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estate building a world class shopping environment for the consumers. In order to keep pace with
the increasing demand, there has been a hectic activity in terms of entry of international labels,
expansion plans, and focus on technology, operations and processes. This has lead to more
complex relationships involving suppliers, third party distributors and retailers, which can be
dealt with the help of an efficient supply chain. A proper supply chain will help meet the
competition head-on, manage stock availability; supplier relations, new value-added services,
cost cutting and most importantly reduce the wastage levels in fresh produce. Large Indian
players like Reliance, Ambanis, K Rahejas, Bharti AirTel, ITC and many others are making
significant investments in this sector leading to emergence of big retailers who can bargain with
suppliers to reap economies of scale. Hence, discounting is becoming an accepted practice.
Proper infrastructure is a pre-requisite in retailing, which would help to modernize India and
facilitate rapid economic growth. This would help in efficient delivery of goods and value-added
services to the consumer making a higher contribution to the GDP.
International retailers see India as the last retailing frontier left as the China’s retail sector is
becoming saturated. However, the Indian Government restrictions on the FDI are creating ripples
among the international players like Walmart, Tesco and many other retail giants struggling to
enter Indian markets. As of now the Government has allowed only 51 per cent FDI in the sector
to ‘one-brand’ shops like Nike, Reebok etc. However, other international players are taking
alternative routes to enter the Indian retail market indirectly via strategic licensing agreement,
franchisee agreement and cash and carry wholesale trading (since 100 per cent FDI is allowed in
wholesale trading).
Current Status
India’s retail industry accounts for 10 percent of its GDP and 8 percent of the employment to
reach $17 billion by 2010. The Indian retail market is estimated at US$ 350 billion. But
organised retail is estimated at only US$ 8 billion. However, the opportunity is huge-by 2010,
organised retail is expected to grow at 6 per cent by 2010 and touch a retail business of $ 17
billion as against its current growth level of 3 per cent which at present is estimated to be $ 6
billion, according to the Study undertaken by The Associated Chambers of Commerce and
Industry of India (ASSOCHAM). Indian retailing is clearly at a tipping point. India is currently
the ninth largest retail market in the world. And it is names of small towns like Dehradun,
Vijayawada, Lucknow and Nasik that will power India up the rankings soon.
Organised retail in India has the potential to add over Rs. 2,000 billion (US$45 billion) business
by the Year 2010 generating employment for some 2.5 million people in various retail operations
and over 10 million additional workforce in retail support activities including contract production
& processing, supply chain & logistics, retail real estate development & management etc. It is
estimated that it will cross the $650-billion mark by 2011, with an already estimated investment
of around $421 billion slated for the next four years.
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