Groceries sell irrespective of the state of the economy. You can stop going to the cinema and restaurants, but there's no way you can live without toothpaste, soap and, well, vegetables. Caught in the city's fast pace, tedious commuting and long working hours, many consumers don't have the time to buy groceries or would like to avoid the chore.

Buyers are now quite comfortable ordering apparel, shoes, electronics, among others, online. With improving comfort with online payments, selling groceries online has become relatively easy.

Phase 1 – Planning the Global Business Enterprise

ESuperstore.com is focused on online grocery retail business. It plans to connect millions of household customers with distributors. ESuperstore.com is an online portal available 24 X 7 to the internet friendly customers. It is a virtual online market place facilitating easy buying and selling of groceries. ESuperstore.com aims to tap the growing Indian consumer goods market. ESuperstore.com plans to start with its presence in six major cities in India namely Delhi, Mumbai, Kolkata, Chennai, Bangalore, Hyderabad and then increase its regional base to more cities in India.

GBP Module 01 -Identifying Global Business Opportunities - Determine international markets for existing or proposed good and services

Indian local products and food items have demand in international market so in future we can expand this on international level with some specific products, and also a huge number of Indian people are working are living outside the to India so it can be a very good opportunity to target such Indian international customers

GBP Module 02- Analyzing International Competitors - Identify domestic and international companies involved in the similar global business activities

Domestic companies:

Bigbasket.com India's Largest Online Grocery Store functional in Chennai,, Bangalore, Hyderabad, Mumbai , pune and some other cities

And some other popular online superstores which are offering the same products and services are..

Aramshop
Fam2kitchen
MyGrahak
Callandoreder
Freshndaily
Shopveg
Atmydoorsteps
Zopnow
Veggibazaar
Bigbasket
Towness

GBP Module 03 - Accessing the Economic-Geographic Environment- Examine geographic and economic factors that affect the business environment of a nation

With a large customer base and increasing penetration of Internet connectivity (partly through smartphones) and growing popularity of online shopping

The Internet is going to be the marketplace for your future purchases, or at least a large portion of it. Online retail in India is forecast to grow hundred-fold from the current Rs 3,400 crore ($600 million) to Rs 4,30,000 crore ($76 billion) by 2021, according Technopak Advisors, a global advisory company.

The share of online retail in total organized retail in India has been forecast to grow from 0.1% now to 5.3% by 2021. Online stores ship a good proportion of their products to small cities where consumers don't have brick-and-mortar stores selling those products (such as high-end brands).

GBP Module 04 - Accessing the Social-Cultural Environment - Research social institutions, customs, traditions, and beliefs influencing the business

GBP Module 05 - Accessing the Political-Legal Environment - Research the influence of government and regulations on business activities

Executive Summary

eGrocery.com is focused on online grocery retail business. It plans to connect millions of

household customers with distributors. eGrocery.com is an online portal available 24 X 7 to the

internet friendly customers. It is a virtual online market place facilitating easy buying and selling

of groceries. eGrocery.com aims to tap the growing Indian consumer goods market.

eGrocery.com plans to start with its presence in six major cities in India namely Delhi, Mumbai,

Kolkata, Chennai, Bangalore, Hyderabad and then increase its regional base to more cities in

India.

This business plan talks about the company information in terms of Vision, Mission,

Objectives, and Values. This document describes the basic business model describing the

categories of business, details of the processes and salient features.

The operations describe the operations, logistics involved and the SCM in details. How

we optimize it to give best value to the customers. It also talks about the inventory

management and type of operations model we use.

The market analysis gives us the clear picture of the present situation and how we handle

the situation for our benefit. How we form a brand and spread the awareness customers.

The marketing also segregates the customer segment and how we reach them. It also talks

about the advertisement strategy.

The financials take care of the capital estimation, breakeven analysis, and profit

estimation. It also talks about the fund sourcing, fund distribution and growth strategies.

The financials also include the exit strategy.

We believe eGrocery.com as a disruptive technology destined to remove the traditional

way of trading way of trading not only in India but also all over the world.

1. Company Information

eGrocery.com is focused on online grocery retail business. It plans to connect millions of

household customers with distributors. eGrocery.com is an online portal available 24 X 7 to the

internet friendly customers. It is a virtual online market place facilitating easy buying and selling

of groceries. eGrocery.com aims to tap the growing Indian consumer goods market.

eGrocery.com plans to start with its presence in six major cities in India namely Delhi, Mumbai,

Kolkata, Chennai, Bangalore, Hyderabad and then increase its regional base to more cities in

India.

1.1 Vision

eGrocery.com is a web start up with limited resources but it align all its strategies keeping in

mind the following visions:

•

To make eGrocery.com available all over India.

•

To be the largest indigenous e-Commerce portal in India.

1.2 Mission

Our mission is to provide a online platform where people can shop for groceries along with door

step delivery. eGrocery.com taps the unattended needs of the people who does not find traditional

trading convenient due to many unavoidable reasons. Our foremost mission is to provide

convenience to the customers followed by best value for money backed by quality and

satisfaction.

1.3 Objectives

The main objectives of eGrocery.com are as follows:

•To serve our customers flawlessly.

•To built a stable and effective network between the distributors, wholesalers, retailers and

the household customers.

•To build a effective sustainable technology.

•To give our customers the best value for money and quickest service.

1.4 Values

We aim to build our business along the path of great values and business ethics which includes:

•Integrity

•Leading Change

•Excellence

•Quality

•Respect for Individual

•Learning

•Sharing

2. Business Model

EGrocery.com is a common platform where the distributors, retailers and wholesalers can supply to the needs of the household customers. EGrocery.com enables a greater market reach to the suppliers and convenience to the customers. It provides a online platform for household customers to choose from a wide variety of products listed by the suppliers (distributors, wholesalers, retailers). It also allows the suppliers to enlist their products to ramp up their sales by increasing their reach. This portal also acts intermediately between the distributor and wholesalers or retailer to supply goods that are unavailable locally.

2.1 Categories of Business

The main model of business can be categorized into two major divisions according to the customer segment and the type of their interaction with the suppliers.

•Business to Customers (B2C)

This is meant for household customers. This model is built around providing convenience, quality and best value for money to the end users. The customers can browse through the catalogs and see the different items listed by the suppliers. The customer orders the selected items and we deliver the product on their doorsteps. This is our main focus and we concentrate all of our initial resources at this.

•Business to Business (B2B)

This model is meant for the wholesalers and retailers who need some items which are unavailable in the local market. This is for bulk shipments and we charge the customers for the shipment. This is not our primary goal. So as a web startup we don’t start with this but we definitely plan to implement this in the future.

2.2 Business Process

The business process for the eGrocery.com is very simple. The Process can be segregated into the following sub categories:-

1. Buying Process

2. Selling Process

2.2.1 Buying Process

This process allows users to search and buy different products listed by sellers. Registration To buy on eGrocery.com one must be a registered user. It's fast, easy and free. As a registered user, they can shop and place orders on eGrocery.com. The registration involves the following

steps:

1. Contact Information

2. Use ID & Password Creation

3. Email Confirmation

Browse

Browsing is clicking through lists of titles called categories until one find something they are interested in.

Select

Before one buys or place an order, they can know about the item and seller to make an informed decision, pay attention to the:

•Listing information

•Product details

•Shipping and payment details

•Seller information

1. Register 2. Browse 3. Select 4. Payment 5.Feedback

Payment

After the buyers have selected their products they are given a choice of selecting their payment mode/method. There are many payment methods and most sellers offer more than one. Some methods offer more protection than others. Listed below are the most common payment methods:

• Demand Drafts

• Cash on Delivery (COD)

• Buyer Pays and Picks Up

• Cheque

Feedback

Feedback is made up of comments and ratings left by members who have bought from and sold to. Once you have received your item, it is time to leave feedback for the seller and the item, letting future buyers know about your experience with the seller. Type of information typically included in seller feedback:

• Satisfaction with the item

• Quality of communication

• Quality of packaging

• Promptness of shipping

• Courteousness

2.2.2 Selling Process

This allows the retailers, wholesalers and distributors to enlist themselves and their products to reach to the customers. The following flow chart explains the process.

2.2.2.1 Supplier Registration

The supplier must enlist themselves by registering themselves with a fixed cost amount.The registration involves the

following steps:

1. Contact Information

2. user ID & Password Creation

3. Email Confirmation

2.2.2.2 Enlist Products

The supplier must enlist their products with appropriate details, pictures, description, prices etc. Each product enlistment requires an one time cost.

2.2.2.3 Manage Products

The suppliers are allowed to modify their entries which are already listed.

2.2.2.3 Feedbacks & Remarks

The feedbacks from supplier are taken to improve the process.

2.3 Revenue Model

The revenue model of eGrocery.com is very simple. eGrocery.com does not charge any customer for browsing. The browsing is made free of cost. The revenue model can be segregated onto the following sub categories, namely:

1. Registration Fee

Manufacturers or Distributors pays annual rent for registering to eGrocery.com. In order to enlist their products or to put any kind of advertisements the companies must be registered. This is a fixed rent.

2. Listing Fee

Manufacturers or Distributors pays annual rent for listing each product. This is a variable rent calculated keeping the cost and various other factors in mind.

3. Service Charges

Service Charges are in terms of the following:

•

Shipment – eGrocery.com charges a nominal amount for shipment of products to the door step. This depends on the distance and amount gradation.

•

Maintenance – eGrocery.com also charges a percentage of the order for maintenance of its business.

•

Discounts – eGrocery.com offers discounts to all of its deals depending on the time and volume of orders.

4. Advertisements

eGrocery.com allows different advertisements which is also a source of revenue.

Revenue Sources

20%

70%

10%

Registration Service Tax Advertisement

3. Operations

Our operations are carried out according to two approaches:

Business to Business (B2B)

•In this category we are developing one to one customer relationship. Here customers are the wholesalers & retailers. When it comes to a business it does not account for a single decision making unit, because there is a great difference between selling to an individual and selling to a business. Our business is composed of a number of distinct individuals and many different people will likely to have an influence on the decision making process.

•We are maintaining our relationship with the wholesaler, as a customer to go deeper to maintain relationships with individual decision makers. We are not viewing our success just in terms of how many new customers we can acquire but in terms of how deeply we can penetrate our current customer accounts. Through this approach we are directly connecting the manufactures to wholesalers and retailers and being as an intermediary service provider we are gaining our share. We are reducing our inventory by establishing a closer communication process with the suppliers in terms of input needs and procurement time frames.

Business to Customers (B2C)

•As in this category our consumers do not care how the order is fulfilled so we have designed our own supply chain. In this category we are selling hundreds of thousands, so we are keeping our eye on statistical analysis of our customer base to figure out what’s going on at any point in time with any particular type of customer.

3.1 Operations Model

3.1.1 Stock it yourself model

In this we are maintaining our integrated warehouses that are able to handle shipments to web customers, so by keeping the warehouses we are fulfilling the orders. Through this we have full control over the fulfillment process. As we are starting a new business, so we have kept limited number of warehouses in limited cities and in limited areas.

3.1.2 Outsourcing warehouse model:

•

In this we are using logistics specialists Federal Express (FedEx) which do the work of stockpiling and shipping web orders. So once an order comes into our site it is automatically transmitted to its warehouse and directly shipped to the customer through

FedEx.

•

We also have fulfillment intermediaries that will take care of all back office operations such that they process orders, direct orders to suppliers, keep updating customers on their order progress and handling product returns and cancellations. We included some of them: Firefly (customer profiles) as Seller agents They will make markets more accessible to providers

Cyber Cash & VeriSign

They are payment enablers which handle purchase transactions and their related funds transfers, as well as risk management. Our demand chain is as follows according to two approaches:

3.2 Time slots for delivery

We have different time slots depending upon the demand of the customers. They are categorized as:

•2 HOUR

This is the best time slot provided by us and it will deliver the products within 2 hour after the order is placed. In this category we will not provide any discounts as the service level is highest in this category. This will target mostly the working people who don’t have time and they just order when they want any product.

•6 HOUR

Customers will get a certain minimal amount of discount in this time slot. This will target the family based customers who plan to make something few hours later and need the products in a few hours of time. They will be generally middle sized customers.

•1 DAY

Quite a god amount of discount would be given to these customers as they are just directly reducing good amount of transportation cost i.e. from warehouse to warehouse or from warehouse to consumers. These customers are also the family based customers but their demand is slightly flexible than the previous time slot. This will target customers who are middle-sized and above.

•2 DAY

This will mainly target the upper segments that are used to keep product stock. They will be benefited maximum discounts as the transportation costs are least here because time to deliver products is too large. In this much time several orders can be seen in the places around the ordered places.

3.3 How we managed our inventory

This is a key term in terms of cost effectiveness. It is the direction and control of activities with

the purpose of getting the right inventory in the right place at the right time in the right quantity in

the right form at the right cost.

We optimized our supply chain by keeping the inventory level very low by using certain

techniques such as fluctuation inventory, lot size inventory & cost of placing orders. We are

maintaining lower inventories from the 2 hour & 6 hour time slots because these orders are

smaller in quantities and carry lower inventory costs.

3.3.1 Fluctuation inventory

This is introduced in our inventory management with apurpose of preventing disruptions in

deliveries to customers. We have maintained a buffer stock which will protect against fluctuations

in supply and demand and lead time and it will also remove stock out situation.

3.3.2 Lot size inventory

We are purchasing items in quantities greater than needed to take advantage of quantity

discounts, to reduce shipping and setup costs. This portion of our inventory depletes gradually as

customers’ orders come in and is replenished cyclically when new orders are received. Depletion

is done according

3.3.3 Cross docking

In this strategy we are moving our goods directly from our warehouses to consumers. This

distribution strategy we have applied in which the customers and distributors are supplied (in case

of B2C & B2B) by central warehouses which act as coordinators of the supply process and as

transshipment points for incoming orders from distributors and consumers but in this strategy we

are not keeping any stock. We are moving goods from one truck to another set of trucks. In some

cases we take off pallets or boxes containing items from incoming truck and move directly to

outgoing truck to avoid inventory cost. This technique is mainly used for the larger time slots that

are 1 day & 2 day.

3.3.4 Refresh inventory

We are constantly refreshing our inventories through the received orders and products coming

from the distributors. When a new lot of product comes to the warehouses then we send those

products to the customers which are already present in our warehouses and through the various

time slots we are continuously refreshing our inventories.

3.4 Transportation cost

This includes the cost of moving the items from the warehouse to warehouse and warehouse to

consumers. As seen from the diagram given below we have two slots for the transportation costs.

The overall transportation cost is thirty one percent of the total capital estimation:

Number of Delivery Centres by Geography

Mumbai

Delhi

Kolkata

Bangalore

Chennai

Hyderabad

3.4.1 Warehouse to warehouse

It includes cost of moving the items from one warehouse to other. This will mainly occur when

the cost of moving goods from distributor to warehouse is high than the cost of moving products

among the warehouses. Example, when one consumer demand for any variety of products and it’s

not available in the nearby warehouse, then we order the product from the nearby warehouse to

avoid the high cost of ordering product from the distributor.

3.4.2 Warehouse to customer

This includes the cost of shipping the products from the warehouse to the customers. As shown in

the graph we have warehouses in the areas where the demand is high and if some item will not be

available in the nearby warehouse then we will ship that item from the next nearby warehouse. If

the time slot is in 1 day or 2 day then we will ship the items directly from the distributors using

the cross docking strategy.

3.5 Logistics network

Our logistics network helped to integrate our company’s activities by:

1) Mirroring the marketing “mission” of the company

2) Improving the efficiency of material and information flows

3) Bringing sub-systems together

4. Marketing Strategy

eGrocery.com is first of its kind in India. It targets a niche category of customers with specific

needs. The needs of the market which was unattended by traditional practices are needed to be

catered. First there must be an awareness spread across the population for converting the needs to

demands. The marketing strategy is made to sustain the business. eGrocery.com is a disruptive

technology destined to topple the traditional practices. The marketing strategy will be aligned

with the vision and mission to reach our objectives.

4.1 Situational Analysis

The traditional practice of buying grocery is characterized by:

1. Manual Process

2. Time Consuming

3. Does not give best value for money

4. Time constrained

5. Inconvenient

6. No Quality Assurance

eGrocery.com home delivery services can be as much as 43% cheaper than compared to current

costs of customers visiting the store using their our car and spare time. Most of the e-groceries are

making home deliveries using a third party service provider, but we are giving through our

personal delivery van and executives.

4.1.1 Unmet Customer Needs

We have identified the following pain points in the industry that eGrocery.com can get away

with.

1. Convenience

In this fast paced life of metros customer does not have time to drive down to the shop and

get the groceries. The drive takes petrol and time along with traffic frustrations. The customer

needs convenience of door step delivery.

2. Quality

The traditional system does not assure quality. We plan to operate at 6 sigma and we would

replace any defects and customer satisfaction is our top priority. Degradable quality leads to

hassle, inconvenience. Customers do not need those so we aim to take care of these

requirements.

3. Value for Money

eGorocery.com promises a great value for money for all its offerings. It promises the

cheapest deals in the market than any other methods as we provide discounts for all deals.

4.2 Our Offerings

Our offerings are very simple. The offerings can be categorized into the following categories:

4.2.1 Offerings to Suppliers

Our offerings to the suppliers are very lucrative at a minimal cost.

1. Greater Reach

2. Greater sales volume

3. Easy access

4.2.2 Offerings to Customers

Our offerings to the customers are:

1. Convenience

2. Timely delivery

3. Cheapest Deals

4. Quality Assurance

5. Value for money

We can get the sweet spot of the market.

Market opportunity analysis is complicated.

There are many competitors and even some

technology which are not right technology

currently running in the market. We have

clearly differentiates our business in the eyes

of our current and potential customers or

clients. We focused our team on delivering

the promise of the previously unmet

promises by our competitors, helping to

improve our internal performance.

4.3 Market Segmentation

We have identified the customers for our business:

• Customers are aged between 23years and above.

• Customers whose house hold income is > Rs15,000/- Per Month.

• If any customers are having dual income households.

• Customers / households with children.

• Customers with education level above Bachelors, since they have to be educated about

internet and its usage.

• Consumer who are looking for convenience; that means they do not want to invest time

in traveling and shopping.

• Average commute time to work of customers.

• Customers number of households with internet access and its awareness.

• Customers & adults with credit cards access.

• Last but important customers “Female shoppers”.

So we can justify our market segmentation by

Segmentation Type Variables

Geographic Metro and cities

Demographic Aged 25-44 years; No sex barrier; income above 15,000/-

Behavioral Awareness & access to Internet; power of using payment through it

Occasion Planned for personal as well as public occasions

Benefits Ease of purchase; power of freeness; Best quality provided

By having such data about the market & customers, we are at

•

Ease to identify the segment.

•

It can be readily reached.

We have defined our market segmentation to get a meaningful approach to the market. We have

encountered that the customers who are within our segment will behave in different as compare to

the others. The segments we have designed provide motivation to the customers in the sense of

price, quality product and timeliness. Apart from the traditional purchase, through our

segmentation, customers get the ease to shop in price as well as time.

4.4 Advantage relative to competition

According to the traditional market and its approach, we are not having any direct

competitors, even if they are provider of same products. Since we are providing, approaching &

attracting with something new strategy.

In the mean time we are providing the facility in new but easily available & handled

technology & platform to do business with us. Even if there are huge competitors, we are

providing the best and secure services to the customers at their ease.

Ever since customers seeks specific benefits, so by assessing the current players

performance in meeting the customer standard will provide an indication of the potential for our

company to move in and win.

4.5 Market readiness of technology

In this particular sector we took into consideration of:

Technology vulnerability: We are enabling penetrating technologies but with respect to

the well known in the market that is well defined and used by the customers and the end

users.

Technology adoption: The ease and flexibility for adoption of new technology. So that

our customers can take advantage of the same.

4.6 Advertisement Strategy

This section is very important as per our business and the race of competition. We have planned

the different ways to promote and advertise out site.

• Advertising it in the known & popular sites as yahoo, Hotmail, MSN etc.

• Indexing of our sites In different and popular Search Engines and product & offers

available in our website.

• Using media planning i.e. newspaper, television advertisements & magazines.

• Offering gifts in different occasions & Celebration

The following are the proposed advertisement strategies for eGrocery.com.

4.6.1 Natural Search

This is achieved by registering ourselves in various search engines across like Google, MSN

Search, Mooter etc. They also optimize their page for improved page ranking.

4.6.2 Paid Search

By paying few sites to feature eBay as their preferred sponsored searches.

4.6.3 Rich Media

Rich Media / Multimedia advertisements featured in various sites.

All these leads to effective buyer marketing leading to continued growth.

5. Technology behind eGrocery.com

In an online business technology is definitely the most important thing. The whole system

is dependent on the technology that we will be using, therefore we should ensure that we

take proper decisions on the architecture on which our system will be developed ,the

hardware the software that we will using and proper security measures to ensure that our

clients can have secure transactions.

5.1 Features in eGrocery.com system

The following are the technology features of eGrocery.com.

•

user friendly web portal

•

Secured money transaction

•

Fast

•

Robust

•

Fault Tolerant

•

Scalable

•

Supports concurrency of 500 users

5.2 Architecture

The architecture that we will be using is 3-tier, J2EE architecture .The picture below describes the

working of a general N-tier architecture, and here we have a presentation layer, a business logic

layer and a data layer. The presentation layer is responsible for all communications with the

user’s computer. The business-logic layer is responsible for implementing the basic rules of the

system according to the operating rules of the business and the data layer provides fast, reliable

access to data needed to run a system

The above picture shows the architecture of

the 3-tier J2EE architecture, and here we

have a client tier, web tier and an EIS tier.

The client tier is responsible for the

presentation at the user end, the web tier is

responsible for the business logic and the

EIS tier also can be referred as a data layer

is responsible for maintaining information

about the relationships between data and

provide fast, reliable access to data needed

to run a system.

5.2.1 Database

The database used will be the oracle 9i

database.

5.2.2 Application Server

The application server will be the BEA

weblogic server; it offers an application

server built for mission critical applications

and service-oriented architecture (SOA).

The proven Enterprise Grade Kernel keeps

the applications up and running even when

deploying a new version, changing the

server configuration or failing over within or

across datacenters.

5.2.3 Web Server

APACHE

5.2.4 Web Browsers

Browsers that will be Compatible are

Mozila, Firefox, IE5+, Netscape

5.3 Operating System

The OS that will be used is UNIX (HPUX) the reason behind using this OS is that UNIX and

BEA weblogic go very well together.

5.4 Hardware Specifications

We will have four different servers working in four entirely different kind’s environment. We

will have one HP UX server for production, this will handle only the production things and will

have data related only to production. One HP UX server for development which will handle data

regarding development then we’ll have one server for testing and a server for disaster recovery,

this server will be the mirror image of all the servers we are having i.e. this server will have all

the data of production, development and testing . The specification for each is given below:

5.4.3 Production HP UX Server (4 CPU, 4 GB RAM)

5.4.4 Development HP UX Server (2 CPU, 2 GB RAM)

5.4.5 Testing HP UX Server (4 CPU, 4 GB RAM)

5.4.6 Disaster Recovery HP UX Server (2 CPU, 2 GB RAM

5.5 Security

In an online business everything is dependent on technology proper measures should be taken to

protect it from attackers or hackers. Several technologies can be employed to help reduce the risk

to companies and their customers when completing e-commerce transactions.

5.5.1 Login ID & Passwords:

To identify the person who is accessing the website.

5.5.2 Firewall

A firewall helps us to prevent unauthorized access of the site. Firewall is considered a first line of

defense in protecting private information. Intercepts all messages entering and leaving the

network.

5.5.3 Denial of Service Attack:

We need to prevent our system from denial of service attack which is an attack on the system or

network that causes a loss of services to users, typically the loss of network connectivity and

services by consuming the bandwidth.

5.5.4 SSL, S-HTTP:

Secure Socket Layer is a protocol used for transmitting private documents via the internet. SSL

uses a cryptographic system that uses two keys to encrypt data. S-HTTP protocol also helps in

transmitting data securely on the network

SSL creates a secure connection between a client and a server over which any amount of data

can be sent securely, S-HTTP is designed to transmit individual messages securely.

5.5.5 Public key infrastructure

This will ensure that the data is accessed by the authorized and the intended users only.

5.5.6 VeriSign Certification:

Our system will be veriSign certified.

5.6 Other systems

We will be having a BI system and CRM system which will be developed by the ORACLE and

we will be also having a SCM system which will be developed by us. We will have automated

reports generation which will help us to take up quick decisions and effective decisions.

Sample Business Plan Page - 19 –

Array Consultancy Services

6. Financials

eGrocery.com is not just a web start up. We have a brick and mortar setup also. We have kept the

setup to be minimal so that we can realistically build on that later. The setup is to be spread across

six metropolitans initially and then incrementing around strategic locations.

6.2 Capital Estimation

Our initial setup would be based or renting official spaces rather than buying it or building our

own setup. This adds to our flexibility. We plan to have the following:

A] Fixed Assets

1. One Corporate Centre in Mumbai – This would be in good and impressive

locations. This would be used for the top management, monitoring and business

development.

2. One Research and Development Centre, Bangalore – This would serve as the development, technological setup, server location and also maintenance site.

3. Five Regional Offices – Spread across 5 cites namely, Bangalore, Kolkata, Delhi, Hyderabad and Chennai. These serves as Business Development Centre and Regional

Offices.

4. Warehouses – A total of 50 warehouses spread across the cities.

B] Transportation

We plan to equip each ware house three scooters and a tempo per warehouses for delivery

purposes.

C] Human Resource

We plane to have a CEO, CFO, CMO, CSO, COO, CTO all posted in the corporate center comprising the top management team. Each regional office is equipped with one Regional Manager who would serve as a BDO. Each warehouse is equipped with the Delivery Centre Manager, 2 Porters and 5 Delivery boys. The RnD center would have 20 employees along with a

HR manager.

D] Technology Setup

We would have the technology setup at Bangalore. This would include Hardware, Software, PC, Servers, Telephones, Networks etc.

E] Miscellaneous

This includes other costs, maintenance inventory costs etc.

Number of Delivery Centers by Geography

Mumbai 15

Delhi 12

Kolkata 8

Bangalore 5

Chennai 5

Hyderabad 5

6.3 Fund Distribution

Fund Distribution by Category

18%

31%

26%

20%

Infrastructure Transportation Human Resource

IT Infrastructure Others

Fund Distribution - by Geography

29%

17%

11%

Mumbai

Bangalore

Delhi

Kolkata

Chennai

Hyderbad

6.4 Fund Sourcing

We plan to go for bank loans, venture capitalists and individual contribution for risk

mitigation.

• Individual Contribution – Partnership

– Rs 25,00,000 per head

– Rs 1,00,00,000

• Venture Capitalist’s Contribution

– Rs 1,00,00,000

• Bank Loan

– Rs 50,00,000

6.5 Break Even Analysis

We plan to reach break even within 24 months of startup.

Fund Sourcing

40%

20%

Partnership VC Bank

Break Even Analysis

-15

-10

-5

Months

Rs in Lacs

Investment Revenue Profit

6.6 Profit Estimation

We plan to put a part of the profit back to the organization for growth so that we have a better long term profit and growth. The comparison is shown below:

6.7 Future Growth Strategy

We plan for constant growth by putting the part of the profit constantly for future growth for sustenance.

6.8 Exit Strategy

We can plan for the following exit strategies.

1) IPO – Initial Public Offering

2) Merger with an existing online retail business in a different vertical

such as Amazon.

3) Acquisitions – by some other online retail business in the same

domain. Eg: Peapod

7. References

1. www.bplans.com

2. www.businessweek.com

3. www.b-plan.com

4. www.about.com

5. Marketing Management – Kotler

6. Introduction to Ecommerce – Jeffrey. F. Rayport, Bernard. J. Jaworski

Appendix – A (Screenshots of Website)

Home Page

Catalog

Products

Purchase Order

Track Order

Status

Kolkata

India

GLOBAL BUSINESS PLAN SUPERCARGOES

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