Vyomshop.in B Plan (Amended) (1)

Vyomshop.in

1 CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.

ADROIT CREATION PRIVATE LIMITED

Business Plan

By Advisors: Pecuniary Matters Management Private Limited

[email protected]

Vyomshop.in


Table of Contents

S. No. Chapter Name Page No.

1 Executive Summary 3

2 Company Overview 4

3 Products & Services 6

4 Target Market 10

5 Market Needs 14

6 Key Customers 16

7 SWOT Analysis 89

8 Marketing Strategy and

Implementation 19

Vyomshop.in


1. Executive Summary

Who We Are

vyomshop.in is a global online shopping portal focusing on Indian Culture and handicraft products

with various category products sold at a very competitive price and best quality. We are a group of

Adroit Design organization established in year 2007. The entity have been registered with MCA, India

as Privately held company in name of ADROIT CREATION PRIVATE LIMITED which is ventured into the

e-commerce portal and have successfully sold quite a good numbers of products online.

vyomshop.in is an Indian start up with global services providing web portal that

provides consumer-to-consumer, business-to-consumer and business to business sales

services. We wish to take our venture to the next level by competing with e-commerce giants like

alibaba.in, amazon.in, flipkart.in, Jabong.in, Myntra.in etc. in the next couple of years and require

financial support for this same goal.

What We Sell

Products that we sell are:

1. E-Book and Books on Indian Mudra, Yoga, Study Skill, Mind tools etc

2. Handicraft Items

3. Jewelry

4. Astrology Products

5. Beauty Product

6. Dress Materials

7. Ayurveda products

Financial Highlights

vyomshop.in will fund its expansion largely though equity funding. The business will return to

stronger profits and gross margins after the expansion.

2. Company Overview

https://en.wikipedia.org/wiki/Business-to-consumer

https://en.wikipedia.org/wiki/Business-to-business

Vyomshop.in


Vyom shop's goal is to become the e-commerce market leader in sales and marketing of Indian

Culture and handicraft products.

Located in Vadodara, Gujarat, we will cater to special consumers who are interested in finding

unique items to supplement their antique looking item and handicraft items collection or finding a

gift that cannot be found in the national chain store in the very busy, very congested shopping mall.

We intend to expand our business by carefully building a repeat customer base and provide the

products and merchandise they wish to purchase. We feel it is important to offer personal customer

support and services to achieve our business philosophy.

In the Who We Are section, we will review the vyomshop.in business and corporate entity and

ownership, the role of Building Blocks in the business, the proposed location, and the start-up costs

and funding.

Adroit Creation Private Limited is incorporated to operate the business happening in the name of

website vyomshop.in. Currently, company is incorporated with Rs. 5,00,000 authorized capital with

Rs. 1,00,000 subscribed by the Promoter & family member. However, as on December 2015,

commitment by a seed Investor is received and 50% of such undisclosed amount has been disbursed

in promoter’s account.

Company is open to venture more investor for expansion and bring vyomshop.in into global

competition.

In order to make vyomshop.in financially viable, there are three major factors necessary to get the

business up and running. First, a feasible concept. We have found that with Building Blocks in the

current retail market condition Second, the business needs someone to manage it. It needed a

professional with a good deal of experience to operate and manage the business. This manager needs

a sound financial background as well as an entrepreneurial spirit. Third, the business needs financial

support. This support will come from different sources. Nilay Thakore have invested time and some

capital to start the business. There is a need for investors to help with the initial capital to allow the

business to have enough equity to get off the ground. The final piece of financial support is the faith

and commitment of a financial institution to loan the remaining funds that are needed to operate

the business.

Vyomshop.in


Management Team

The management of vyomshop.in is made up of the owner, a Brand manager and other team

members who will be hired locally and will be added: a Programmer, SEO Expert, Graphic designer,

Data manager and Customer service executive.

Mission Statement

The mission of vyomshop.in is to offer distinctive, cost effective and better products to Indian

customers, spread Indian Culture, Art and values across the globe.

Locations and Facilities

This facility will be established in an upscale, growing area in Vadodara of Vibrant Gujarat. We will

service the growing Indian Online Shoppers throughout India.

Vyomshop.in


3. Products and Services

The following are the products that will be sold online at vyomshop.in

1. Antique looking items (brass metal): Religious idols, nautical items, decorative items, wall

clocks, vases and gift items

2. Wooden and handicraft items

3. E Book & Books

4. Jewelry

5. Dress material

Competitors

The need to attract, acquire, leverage, and retain customers remains a primary concern to business.

Revenue growth through customer acquisition and retention is as important a requirement in e-

commerce as it is in other business. Customers, especially in the Indian business culture, count speed

of service, quality of the product and product prices a key reason why they do business with a online

company. They resent delays and hate waiting for service. In India, almost 80% of the gross domestic

product (GDP) is generated through different kinds of services, and speed of service no longer

distinguishes an enterprise as providing superior value. Customers generally are not thrilled if they

receive good service, but they are highly dissatisfied if they do not. Vyomshop.in will provide the

necessary framework to cope with these demands by cutting the waiting time for a service with

competitive cost.

Customers also want consistent, reliable, and easy-to-use service. As the speed of service increases,

customer expectations grow, making friendly, easy, and solution-oriented customer service an

important business trend.

Reflective shoppers get some support from e-commerce as well. They like to investigate products

precisely and consciously. However, when browsing costs a lot because of on-line charges, they do

less of it. Consequently, they do not get a holistic view of the available options, and their

expectations often are not met. Reference-spending customers do not let themselves be hurried or

forced. They use alternative offline sources to get information. They refuse aggressive marketing,

which is accepted in e-commerce industry.

Vyomshop.in


As all the business has direct or indirect competitor, so does we. Our prime competitors are

amazon.in, flipkart.in, snapdeal.com who all have a wide range of customer base and are in

operation since last 5 years. Our company would lead the race in long run with its unique selling

approach of setting up a franchise storefront in all major market cities so that customer can directly

approach our retail store and either buy a product or get it replaced or serviced.

Handicraft Items

Market Size and Potential:

India's share of the global art market — at approximately Rs 700 crore — is still less than 1 per cent

of a global art market which is currently worth 43 billion euros.

Some key factors driving market growth include the rapidly expanding base of Indian corporate and

high income individuals and the associated emergence of a museum-going culture in the country. A

greater awareness of interior design and aesthetics is also playing a tertiary role. Foreign and

Chinese collectors, although still partial to ‘home grown' art, are now showing more interest in the

work of Indian artists.

Over the last decade or so India has become one of the economic powerhouses of the world and

indeed many experts believe it has the potential to rise yet further up the league table of leading

economies. This is an area of the world which is still showing significant growth despite the

worldwide economic downturn and indeed demand for mining products continues to boom, a

traditional reflection of a growing economy. But how is the underlying economy performing?

In years gone by inflation has been a major problem for the Indian government although thankfully it

appears to more under control than ever before. We are also seeing major investment from overseas

countries looking to tap into the Indian markets which are very much protected by the authorities.

China and India are perhaps the only two major economies in the world which are showing anywhere

near significant growth at this point in time and trading arrangements with overseas counterparts are

being announced on a regular basis. But how does this leave the investment arena?

Property (62.50%)

Precious metals (7.81%)

Fine wine (7.81%)

Vyomshop.in


Stocks and shares (6.25%)

Antiques (6.25%)

While there are many experts who believe that the worldwide antiques market has increased in

popularity in recent times due to the worldwide economic downturn, in some local markets this has

yet to be reflected. However, the level of interest in the Indian antiques market is significantly

higher than that in the worldwide antiques market which may reflect local culture and some unique

investment opportunities we have seen in the Indian antiques market in years gone by. What kind of

percentage of your investment portfolio should be directed towards the antiques market as a whole

has been a matter of debate for many years because very often these investments can prove difficult

to liquidate at acceptable prices if funds are required very quickly.

The antiques arena is just one of many specialist arenas which are catching the eye of investors who

have lost faith with the worldwide and local stock markets. However, if you’re looking down this

particular route it is vital you take professional financial advice every step of the way because it is a

very diverse market which is very often at the beck and call of trends and fashions which can change

very quickly

"Source: http://www.expatforum.in/banking/which-of-the-following-would-expats-in-india-

consider-investing-in.html"

BOOKS

Market Size and Potential:

Technopak Advisors claim in the Business Standard that the Indian book retail industry is estimated

to be over Rs 3,000 crore, out of which organised retail accounts for only 7 per cent. The industry is

expected to grow by approximately 15 per cent a year. Book retail contributes only about 1 per cent

to the overall retail industry. Text and curriculum books account for about 50 per cent of the sales.

Second-hand books are also a big chunk of the book retail market. In the past few years, several

large format book store chains have come up, such as Landmark, Crossword and Om Book Shop.

And so looking at the various market reports and analysis we have precisely chosen top product

categories to be displayed at our site vyomshop.in so as to meet the rising demand of the customers

and growth potential of the company.

Vyomshop.in


Sourcing and Fulfillment

We buy the ordered item from our network of suppliers who offer us the genuine products with 15 to

35 % margin. They also give us a payment option of credit card and a time credit of 7 to 10 days from

the date of product purchase.

We are planning to have an agreement with our chosen suppliers for a long time benefit.

Future Products and Services

Our future products categories would be baby products, men and women accessories, beauty and

health products.

In near future as mentioned earlier we would also be giving physical store franchise to various cities

so that it helps in better customer satisfaction and service.

Vyomshop.in


4. Target Market

Who Buy Online?

Online shopping in India, saw 128% growth in interest from the consumers in the year 2011 to 2012 in

comparison to only 40% growth in 2010 to 2011, making 2012 the tipping point for online shopping in

India.

The number of Internet users in India is expected to nearly triple from 125 million in 2011 to 330

million by 2016, says a report by Boston Consulting Group (BCG). This rise in Internet penetration will

lead an increase in digital influence on people's purchase decisions.

According to the report titled “From Buzz to Bucks: Capitalizing on India’s “Digitally Influenced”

Consumers,”, 40 per cent of India's 90 million urban Internet users say that online activities such as

product research and price comparison influence what they buy. The digital influence, currently

affecting $30 billion of urban consumer spending is expected to greatly accelerate over the next four

years.

To determine how Internet use affects buying decisions, BCG's Centre for Consumer and Customer

Insight surveyed 25,000 Indian consumers on their online activities during each step of the purchase

cycle, in 101 different product categories.

“We found that the growing digital influence is particularly important in categories such as

appliances and consumer electronics, in which 40 to 60 per cent of buyers have access to the

Internet, and more than a third of them are relying on the Internet for product research or price

comparison,” said Arvind Subramanian, a BCG partner and co-author of the report.

Vyomshop.in


Demographic Profile

Gender: Male (63%), Female (37%), age group (18 to 50) with 71% respondents in the age group of (18

to 35). 89% users were heavy users of the Internet with 67% users having access to their own money

and 33% having access to someone else’s money. The sample size had a monthly average household

income of INR 55,051/-. The respondents were spread across Delhi (22%), Mumbai (24%), Kolkata

(9%), Bangalore (17%), Ahmedabad (6%), Hyderabad (12%), Pune (7%) & others (2%).

Overall, the Internet has the highest penetration among people ages 18 to 24 (48 per cent) and the

lowest among those older than 54 (6 percent). The Internet is projected to reach small towns and

the low rungs of the economic ladder more quickly than retail chains will, bridging geographic

barriers and feeding the growing appetite for consumer goods, the report said.

" Source : http://www.business-standard.in/article/technology/internet-users-in-india-to-

triple-by-2016-113042500185_1.html "

Why Buy Online ?

Lower Prices

It all started here. Go online and save money. Price can be a powerful tool for the online retailer,

especially as shopping BOTS scour the web for the lowest-priced vendors. Strategic use of promo

table items can help put a little known vendor front and center on a world-wide stage: use price to

lure shoppers to your business and then wow them with speed, reliability and service.

Information

Research and data collection is one of the strongest motivators for online shoppers. They can

compare prices, models, and selection at 20 different stores in under an hour. As a result, consumers

became better informed. Retailers would joke that customers knew more about their products than

what they themselves did. That’s when they were in the loop. Now, customers are more comfortable

online. They don’t bother to shop the physical stores or even call local businesses to check prices.

Convenience

Shopping online eliminates many of the most cumbersome aspects of shopping: having to travel to

the store, search for parking, search for the item, or even finding the right phone number in the

Vyomshop.in


catalog. The marketplace is open 24 hours a day, 7 days a week: you can shop at 3 am in your

bathrobe. That’s convenience.

When we can go online to a business we buy from regularly, it has all of our pertinent information,

from credit card data to shipping addresses, on file. That’s convenience — recently, one of us bought

a book on Amazon in less than a minute, start to finish.

Control

Slow cashiers, cranky fellow shoppers, kids who should have been left home with Grandma — all of

these are nobody’s favorite things. E-commerce lets shoppers avoid all the unpleasant aspects of

brick and mortar shopping. It lets the customer decide what they want, when they want it, what

price they want to pay, without having to interact with real-live people. This is a very attractive

option for some shoppers.

Specialty Items

We are living in the age of specialists. Customers want the unique, the different, that specialty item

not already owned by everyone else. This is where online business shines: the jeweler who goes

online with 5,000 different items doesn't always do as well as the jeweler that just sells belly button

rings.

Trust

Considering the rocky start e-commerce had, who would have thought that trust would be a major

reason shoppers flock to on-line retailers? Yet it is. People pay extra money for security and peace of

mind. What has made trust a leading motivator is a no-hassle return policy. Sharp retailers go the

extra mile and include return instructions and labels with every purchase. Three simple words create

trust and safety online: guarantee, guarantee, guarantee.

Emotional Connection

Shoppers get attached to certain websites. They like knowing where everything is — where to click to

find the best deals, where the shopping cart is, and more. Your website can create emotional

connections that keep customers coming back.

Entertainment

Vyomshop.in


Shopping online can be fun. It’s the thrill of the hunt, finding that certain item online, or beating six

other bidders all vying for the same piece of merchandise for sale on auction. Savvy retailers add

humor to their website: funny ads, comical signs, and custom created characters: shoppers come for

the entertaining content, and wind up staying — and buying!

How many of these factors can you offer your on-line customers? This isn't an all or nothing

proposition: you can offer an emotional connection, trust and convenience yet still have higher

prices than your brick and mortar counterpart

No pressure sales: We've all been awkwardly propositioned by eager salespeople. You don't have to

put up with that online.

" Source : http://theretailersadvantage.net/tag/why-customers-shop-online/"

How customer finds vyomshop.in and buys from the online store?

What are people doing online? This is important as it helps us finding out how exactly we can come

across our specific customers. Almost 58% of Internet users are reading or sending email. 50% are

using search (this includes all kinds of search engines). 38% use Internet to get news, 38% are online

for fun, and, 27% are using social networking sites.

And so we target an audience of 30,000 monthly newsletter subscribers and send them promotional

email every day about latest offers and promotions at vyomshop.in

We are planning to appoint a dedicated staff for Search Engine optimization so that our site comes in

first page of most search engines based on selected keywords.

We would be doing a lot of PR activities and publishing it to news providing sites online. Also we are

socially active by publishing a page and profile on all major social networking sites like facebook,

twitter, linkedin, google+ etc.

We also sponsor a event and also attend one, publish in local newspaper etc.

Vyomshop.in


5. Market Needs

What customer problems do we solve by selling through vyomshop.in?

Price Challenge:

Today buying through the Internet can be much cheaper than in real life, in ordinary shops. What is

the reason that determines this situation? It is logical that the costs of online entrepreneurs do not

include the cost of rent and maintenance of retail space, there are no costs for hiring sellers and

guardians, and there is no need to pay for the services of intermediaries. This determines the low

price.

And we keep an eagles eye on the price of our products sold at competitors website so as to offer

the best price challenge.

Time Saving:

The online stores allows you to "walk through its trading pavilions" at any convenient time. You can

always have a free minute at work, at home or at the cottage. And even being in the trip you can

seize the moment, which may result into an acquisition or selection of necessary goods and services.

Our online store offers customer a very attractive and easy to navigate and search through entire

product list so that customer can make immediate buying decision.

Payment Options:

Unlike departmental stores which offers only cash payment and card payment option to the

customers, our portal allows customer to pay through additional payment options like phone

banking, net banking, EMI option and cash card option. We also have integrated the best in class

payment gateway CC Avenues which has covered almost all payment option with all nationalized

banks.

Earn Reward Points on Purchase:

vyomshop.in also offers its customer reward points and loyalty points which can be redeemed in next

purchase so as to increase repeat customers.

Vyomshop.in


Free and Fast Shipping:

We have tie up with India's best courier partners which offers us the market minimum rate and

fastest shipping service to make ours buyers happy.

Branded Packaging of the product:

We plan to tie up with the best in class packaging company which offers reasonable and quality

branded packaging for our products.

24/7 Customer Service:

We also have to integrate a 24/7 customer support number which can provide 100 % customer

satisfaction with his/her query.

Product Rating and Reviews:

Vyomshop.in provides individual product ratings and reviews so that customer can make an informed

decision before they buy.

Sign in for coupons and deals:

We plan to introduce a sign in pop up for visitors to sign in for latest offers and deals on vyomshop.in

so that we can increase our customer database in short time.

Vyomshop.in


6. Key Customers

India Social reached out to Nielsen India for some deeper insights about the key findings for the

Indian market. Alongside some key findings shared in their company release, we have captured some

of these EXCLUSIVE data about the Indian market in this post.

SCOPE OF THE REPORT

The Nielsen Global Online Shopping Report looks at how consumers shop online: what they intend to

buy, how they use various sites, the impact of social media and other factors that come into play

when they are trying to decide how to spend their money.

SUMMARY OF THE KEY FINDINGS

• More than eight out of ten Indian online consumers plan to shop online in the next twelve

months

• More than a quarter indicate they spend upwards of 11 percent of their monthly shopping

expenditure on online purchases

Vyomshop.in


• 71 percent Indians trust recommendations from family when making an online purchase

decision, followed by recommendations from friends at 64 percent and online product reviews

at 29 percent

• Half the Indian consumers (50%) use social media sites to help them make online purchase

decisions.

• Online reviews and opinions are most important for Indians when buying Consumer Electronics

(57%), Software (50%), and a Car (47%).

• More than four in ten Indians are more likely to share (post a review/ Tweet/ review) a

negative product or service experience online than they were to share a positive experience

• In the next six months Indians are most likely to buy Books (41%), Airline ticket/reservations

(40%), and Electronic equipment like TV, Camera, etc. (36%) online

• When shopping online, one third of Indians (33%) purchase most frequently from websites

which allow them to select products from many different stores.

Vyomshop.in


7. SWOT Analysis

Strengths

The strengths of our business include the following:

• Strategic market segmentation and implementation strategies

• Diversified market segments, ensuring the lack of dependency on one particular market

• Combination of skills in directorship. The directors intend to jointly develop business strategy

and long-term plans, having wide experience in product and business know-how.

• Establishment and maintenance of a strong capital base

• An aggressive and focused marketing campaign with clear goals and strategies

Weaknesses

As we build on our strengths, we need to also stay conscious of these areas of weakness:

• A dependence on quickly changing technology.

• Cost factor associated with keeping hardware up to date.

Opportunities

• Growing population of daily Internet users. The importance of the Internet almost equals

that of the telephone. As the population of daily Internet users increases, so will there online

shopping needs.

• Social bonds fostered by the new Internet communities. The Internet is bringing people

from across the world together unlike any other communication medium.

Threats

• Rapidly falling cost of Online product sales through Internet:

• Emerging local competitors: Many of our programs will be designed to build customer

loyalty, and it is our hope that our quality service and up-scale ambiance won't be easily

duplicate

Vyomshop.in


8. Marketing Strategy and Implementation

Marketing Plan

Overview

Our marketing strategy is a simple one: satisfied customers are our best marketing tool. When a

customer buys a product knowing that his product ordered will reach him in two working days time

with best in class quality, our name and service will stand on its own. We have talked with many

friends, and associates who are excited about our plans and are anxious to buy products from our

online portal.

In addition, we are distributing advertising brochures to large businesses at checkout, (Vadodara

Central,More Mega Store,Talwalkars Gym,Hande Gym, DA Mart etc.) offering a 10% discount for a

limited time to build a client base.

Local TV news shows will be contacted to feature our business as a new service to the community.

Direct mail will be sent to prospective client base in Vadodara. Brochures will be distributed to

hotels, restaurants, condominiums, pet stores, coffee shops, Zoo etc. Create a stunning looking web

store. Advertise in the Local News paper like Times of India, Divya Bhaskar,Sandesh etc.

Positioning

For busy, mobile people whose time is already at a premium, but desire a reasonable priced, high

quality product while surfing at their home or office and placing order, we will meet their

expectations in product cost, quality, delivery and after sales support.

Pricing

Pricing of our products must remain initially competitive with our rivals. Management does however

plan to price our Antique looking items somewhat more than our other products to reflect operating

costs. This is typical within the industry and can create higher margins. If vyomshop.in is able to

capture a significant number of newer customers, then management will consider a rise in overall

prices to reflect our established unique position.

Vyomshop.in


Promotion

Promotion will be initially spearheaded by Search Engine Optimization,Email Marketing etc. because

of its low cost, and then through advertising once the company begins to increase cash flow to an

acceptable figure.

Distribution

The customers will buy our products directly from the e store. We will generate sales through our

website and its secure server and we will ship all ordered products from the store. All telephone

orders will be taken at the e store through either our single (1800) line or the local number. All

debits and credits, order transactions, charge backs, and price discounts will be accounted for on the

Magento Accounting system at the office.

Date post:	22-Jan-2018
Category:	Documents
Upload:	nilaybhailu
View:	392 times
Download:	0 times

Vyomshop.in B Plan (Amended) (1)

Documents