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8/7/2019 Bplan E-retail Final
http://slidepdf.com/reader/full/bplan-e-retail-final 1/17
EXECUTIVE SUMMARY:
Kapsons is one of the leading retailers of Northern sector in
readymade garments, dealing with top most national and Internationalbrands. We are the first north India owned western apparel store. Our
intentions are to obtain 80% market share and become a central hub
of shopping activity for the local population as well others who
enjoy wearing Kapsons brands. It is the goal of KAPSONS to become
North India’s top cultural retail store. We hope to obtain both high
profits and a reputation for great customer satisfaction by offering a
large variety of high quality and rare products to our customers
through all modes available. We want to provide a central location forthe growing loyal customers. E-retailing has witnessed a dramatic
change in the business across the globe. This has given way for the
retail outlets to do business over internet.
The Business model we will follow will be Bricks and Clicks i.e.
transition of the traditional retailers to ecommerce by offering
products on internet.
Objectives
1. To create a shopping environment that caters to the apparelneeds of the urban and sub urban anywhere and everywherethey need.
2. To earn 80% market share and become the number one ethnic &western wear apparel store in North India and achieve namerecognition all over the country.
3. To receive a 20-30% (modest) profit margin within the first year.
4. To have a customer base of 1,000 by the end of the firstoperating year.
5. To achieve a net profit of less% in first year and to achieve
a positive net profit by year two.
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Mission
Kapsons’ mission is to offer quality, name brand western wear in anassortment of sizes and styles to access all the potential markets andcustomers through Online medium and to incorporate traditional retail
practices with internet technology.
The business model will follow the Business to consumer (B2C)pathway.This is the most common model in e-commerce. In this model, online
businesses sell to individual consumers. In this model the businesshouse will have an e-commerce website which will list all their productcategories with detailed information about products with photographs,flash animation and comparing similar products etc., for quick decisionmaking over web.
Some of the main reasons why consumers and businesses prefer shopping online:1. Better pricing2. Larger product selections3. Convenient, easy to shop around for selection of different vendors and best prices4. Many product review resources5. Effortless product comparison
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• Bottoms
• Dresses
• Footwear
• Innerwear
• Accessories
Brands page should not be visible as this will affect the shopping
psychology of the user. Some brands may remain untouched. Also by
not dividing the webpage brand wise will keep our MBO legacy alive.
All brands visible together may improve the possibility of shopping all
brands together and also gives more variety and options to the user.
There will be a scroll in bottom which will symbolise all the brands that
we own and sell.
• Item Page: Item 1 – 10.. so on with MRP or our offer price and
Item code
• Selecting items and adding to the cart
• View cart
• Cart page : cart items ; total amount of shopping ; continue
shopping ; proceed to checkout
• Checkout page : Enter personal details ; credit card details ;
submit order
• Confirmation page : order details ; order tracking number
A link of “Track your order” – tracking the delivery of the order by the
user.
Features of a shopping cart:
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• Search Engine Friendly
• Email Marketing Built-in
• 100% Self Manage Your Store
• User Friendly Navigation• Multiple Category Levels
• Site Statistics Reporting
• Import/Export & Instant Backup
• Fast Product Search
• Up sell with Related Items
• Coupon & Email Promotions
• Newsletter & Archiving
Built-in
• Multi-Level Security• Fast & Helpful Phone
Support
• Custom Pricing for
Client/Membership Login
• Industry standard Gateways
& Merchant Accounts
Compatibility
STEP 2: Back office management /manpower or Human Resource:
➢ Kapsons solutions will develop the website as per the requirement.
➢ A team working on the back end systems of the website will be
called as control panel
Control Panel: This panel will include the following manpower forvarious tasks:
If we distribute this task Category1 wise i.e. MEN, WOMEN, KIDS
➢ A Photoshop expert to edit the clicked photographs or to edit the
visuals received from the vendors in order to make the pictures
suitable for website format. The task of the Photoshop expert will
be divided team wise. If total is 40 brands , approximately 150
images(visuals) a day
• A group of people will be updating the items, products, prices,schemes etc. this group will be divided Category wise and
include:
➢ Marketing person – making schemes , special prices as
per the inventory,
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• Items selection for uploading and item deletion which are non
available.
• Keeping a track of the seasonal fashion trends and market
demand.
• Selecting the right product from the inventory to ensure fastsales.
• Maintaining reports for best sellers, slow sellers
• Sales forecast monthly.
➢ Customer relationship executive – regular mailers, SMS,
schemes and contact with the customers.
➢ Content manager – Responsible for the content and item
description as well as brand description on site. Framing the
mailers and newsletters scheme content and other material likepolicy framing about each brand and item related to the website.
➢ Order manager-This person will take care of all the orders
submitted online.
• He will maintain a database of the orders.
• Keep the track of the payments.
• Submit that order to the inventory or to the regional
office.
•
Check availability of the item in the stores or inventory.• He will update the track of the order for the User
➢ Documentation executive- Maintain files for the customers
with User ID and personal details.
• Get the order packed and couriered to the destination.
• Working upon the complaints and coordinating with the stores
to resolve the problems arising on order shipment and delivery
• Coordination with the courier companies and negotiating rates.
➢ Customer support executive – Taking daily calls from the
customer;
Query handling
Order tracking information
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Complaints registration and informing accordingly in
the stores or the order manager. Schemes
communication with the callers. Policies and rules for
shopping conveyed to the customers.
Total manpower requirement on an initial basis:
The manpower/ personnel requirement has been decided on the
criteria of our launching of this project. We will divide teams on the
basis of category 1 i.e. men , women & kids. Our priority is to pull
crowd of all ages to our online portal. Initially we can filter our visuals
as per the demand of the brands. Later on after getting the clicks we
can work upon individual brands.
As per the team in category 1 – it depends on the team how do they
divide their items category or give schemes etc.
➢ Photoshop expert (2 in each category) – 6 nos.
➢ Marketing personnel as per category 1– 3 nos.( We can
accommodate only 1 marketing manager for the e-portal
depending on the work)
➢ Customer relationship exec - 3 nos.
➢ Content manager – 3➢ Order manager – 3
➢ Documentation exec. – 3
➢ Customer support exec. – 3
➢ TOTAL personnel - 27
Website maintenance and development will be taken care by our
Infosoft team with uploading and deleting.
Payment gateway:Selecting the modes of payment through 3rd party:
➢ Debit/ credit card
➢ DD/cheque
➢ Bank transfer
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The moment payment is confirmed. This order will be submitted to the
appropriate regional store where the store manager will enter the
article under the expenses and generate a cash voucher for the online
sales. This print cash voucher will be treated as money by the
accounts for the balance sheet.
STEP 3: Infrastructure requirement:
How clients, customers, partners and suppliers may connect to anInternet company right through the Internet.
Customers using computers, telephones, etc., can connect to theInternet through dial-up lines to the public switched telephonenetwork (PSTN). Through the PSTN Internet Service Providers (ISPs)can be reached. The ISPs can also be reached through dedicated linesthat generally offer higher bit-rates, such as digital subscriber lines(DSLs), as well as T1, T4 and other links. Connections can also beestablished from LANs, routers, hubs and PBX and other switches onthe Customer Premises In addition to the plain old telephone system(POTS) other operators offer connections to the Internet. Theseinclude cable television operators, electric power companies, etc.
Most are integrated with other networks; including packet switchedpublic data networks (PSPDNs) that use routers and similarswitching/directing devices.
On the other side of these networks you will find the host computersof the product/service provider or seller. These people may have co-located or outsourced storage facilities. The latter are datawarehouses containing information on products, services, clients,partners, suppliers, billing, payments, etc.
Security is of a major concern. This includes concerns about the
following, among many other security problems:• Credit card numbers, expiration dates, and owner information
getting in the wrong hands.
• Orders being accepted from the wrong clients.
• Payments being made to the wrong sources or goods andservices being delivered to the wrong people.
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• Viruses being allowed to pass through the system.
To prevent some of these security problems firewalls are installed atcritical interfaces. The firewalls are supposed to filter the traffic, inhibittransmission of unwanted information (including viruses), and prevent
malicious or criminal actions by outside persons. However, a firewallcannot by itself prevent misuse of credit card numbers or identityfraud.
Encryption is a way of improving security. You as a user can encryptyour messages in an end-to-end fashion and having yourcorrespondent at the other end convert the message back into the
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original clear-text. Encryption can also be used on individual links inthe transmission chain.
There has always been a competition between users and "authorities."Users want secure encryption end-to-end, and government (law
enforcement) agencies want to be able to read your messages and inparticular illegal ones.
HOW AN E-COMMERCE SITE WORKS
Normally a user will get to know about a online shopping web sitethrough many ways, most frequently all online users will find websites
on the go by using Google search or any other search engines. Whenthey see the web site information link, they click to it, complete thewebsite registration process if any, choose the products they areinterested, compare similar products specification cost etc., andconfirm the items selected and finalize the invoice and make paymentvia their debit card / credit card bank account .Once the payment isreceived the order manager confirms the payment and start
processing the order,and ship the productto the user’s delivery /shipping address.Further if the productis carrying warranty,post sales support andservice should befacilitated to thecustomer in order tocreate good word of mouth and get a good
returning customerbase which is the keysuccess factor for thee-Retailer
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STEP 4: SUPPLY CHAIN MANAGEMENT: Order delivery will berestricted only to the Kapsons regional main stores i.e. 6 stores andfinally to the warehouse of Mohali if the stock is unavailable.
Flow chart of the process of Kapsons e-retail SCM plan
Order is not available in the regional storeOrder number with customer details provided to the inventory (warehousOrder is couriered to the required site wit
Unavailable product will not be visible on the site. Information of the inventory will
Website
layout
consisting of
all brands
and items
Selection of
items by
the user
and added
in the cart
Total order
is
confirmed
and amount
is
Confirmatio
n of the
order by
the user
and the
User ID is
allotted and
customer
details are
received.
Payment is
done by the
customer
Payment is
received by the
merchant bank
and the details
are cross
If details are fraud
or not matched, no
transaction is done
and confirmed to
the order manager.
Order cancellation
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After/ during the delivery of the parcel to the destination
Details are
confirmed by
the bank to theour order
manager
Order is
confirmed and
processing on
the order starts
after 24 hrs of
Customer can
cancel his order
within 24 hrsduration from
time of
confirming the
A confirmation
mail is sent
after 24 hrs tothe customer
Availability of
the order items
are checked in
the regional
store by the
order mana er
Order items
are available in
the regionalstore
Items are not
available in the
regional store
then are
checked in the
central store
Order number
(CODE) with the
items details and
customer billing
and shipping
Order
package is
couriered
If items are not even
available in the
inventory, the item
will not be visible on
the website. Thus item
has to be in central
Order trackingdetails are
updated on the
website
Emails of order
packaging and
delivery status
to the user
Acknowledgem
ent mails &
SMS after the
receipt of the
order by the
user
Item is finally
delivered to the
customer at the
requested
destination
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All couriers will be done through 3rd party. Tie up with theparty. Courier charges will not be included in the item cost. Itwill be charged Rs 100 per order after the order confirmation.
Return policy:
The return Policy should be drafted as per the company functions and
in accordance with the policies of accounts, logistics and marketing
departments.
➢ All wrong and defected shipments will be returned with the right
order with no extra courier charges
➢ Order with wrong sizes or different color will also be accepted for
the customer satisfaction but will not be delivered with
exchanged product. The money will be returned and the person if
wants to buy the right color or size will have to shop from the
nearest store.
Defected Item
is delivered
Wrong item is
delivered by
staff mistake.
Customer
wants to
exchange due
to size problemor design/ color
not liked.
User can go to
the neareststore and
exchange with
the new item
within fix time
Customer can
return back the
item and the
right item will be
returned with the
courier cost bore
Customer can
return back item
and exchanged
item will be
delivered with all
courier charges
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➢ No exchanges will be allowed and accepted online. Exchanges
can be accepted on the main Kaspsons store or any Kapsons pvt
ltd EBO.
GOVERNMENT REGULATIONS IN RETAIL
For the growth e-commerce, Indian government is taking necessarysteps through effective Telecom policies, introduced Information
Technology IT ACT to create necessary legal and administrativeframework. To build the confidence among common public to increase
online business, The CCA (Controller of Certifying Authority) hascreated PKI (Public Key Infrastructure) i.e. for electronic authenticationvia digital signatures. This will avoid cyber space crimes. To increasethe use of internet, our government has taken various steps to reducecost and offer attractive plans for corporate and end users with highspeed communication services getting increased day by day based onthe demand. This will drive e-commerce transactions to huge growthin e-Retailing sector. For goods or services delivered still there are fewconfusions in customs duty, State and central sales tax, VAT, excise
etc., This has to be clearly spell out by the government.
STEP 5: Marketing Activities
Pre- Launching activities:➢ Hoardings – Stating the arrival of the e shopping in the specific
region.➢ Papers – Stating the arrival of the e shopping in the specific
region.
➢ Radio activity – Stating the arrival of the e shopping in the
specific region.
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All Marketing activities should start almost a fortnight before the
launch.
Marketing the website Online:
1. Search engine optimization - all content will be SEO based
2. Pay per click – ad words
3. Online banner visibility on searching portals, media websites,
fashion sites etc(face book , twitter)
4. Flowing of the Mailers and SMS to the existing client database as
a value added service
MERITS AND DEMERITS OF E- RETAILING FOR HOST AND USER
➢ Advantages to the e-retailer:
• Saves on the wages and premises
• Reaches a larger audience
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• Accepts order 24 hours a day
• More opportunities of CRM and micro marketing
Merits of E-Retailing
1. The electronic channel gives the existing brick-store retailers
an opportunity to reach new markets.
2. For the existing retailers, it is an extension to leverage their
skills and grow revenues and profits without creating an
altogether new business.
3. E-Retailing overcomes some limitations of the traditional
formats, for instance the customers can shop from the comfort of their homes.
4. The e-commerce software that also traces the customer’s
activities on the Net enables e-retailers to gain valuable insights
into their customers shopping behavior.
5. The e-retail channels transcend all barriers of time and space.
The retailer’s server must be on 24*7. An order can come fromany customer living any place at any time of the day.
6. E-Commerce channels are definitely efficient and retailers do
not have to pay a heavy price for brick-n-mortar shops in costly
shopping malls
➢ Disadvantages :• Credit card and debit card information worries
• Lack of personal and social interaction
• Cant feel the merchandise
• Premium charged for delivery
• Difficulties of returning goods or refund policy
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➢ Advantages to the user:• Cost effective
• Convenient, easy and saves time
• Easy search of variety
• Customized shopping
Outlook of E-retailing as a new business plan:
The Challenges The opportunities
• Fierce Competition among
wholesalers & retailers
Find your niche - use the power of
internet to expand your sales
channel and directly engage
customers
• Profit Margin drops as a
result of by price war
Capture market share and
healthier profit in the shortest
time by promoting it online.
• Increasing holding cost of
inventory.
Alternative Channel (Internet) to
clear unsold stocks and end of season clothing.
• Expensive expansion cost for
traditional brick & mortar
clothing business
Using online storefront as a low
cost platform - no high cost for
rental and renovation. It is a low
cost mode of business.