Kirana store

1. Kirana Store Group Members Ritwik Sharma(90) Karan Sharma(87) Rahul Sheth (91) Prabhakar Yadav (118) Rohit Pawar (66) DeepakVasu (113) 08-Mar-13 1

2. It is not easy to compete with kirana stores: Rajiv Lal ( Senior Professor of Retailing at Harvard Business School  ) 08-Mar-13 2

3. Product In Kilogram Sack Amount Sugar 100 4 Rs 40/- Wheat 30 10 Rs 26-32/- Dal 30 4 Rs 75-80/- Rice 50 20 Rs 36-56/- Kerosene 4000 liters Rs 15-20/- Current Scenario 08-Mar-13 3

4. PRODUCT AMOUNT(IN RS) PRODUCT AMOUNT(IN RS) Beverage 10-70/- Health and care product. 10-115/- Stationeries 2-35/- Chocolates. 01-120/- Cigarette 6-120/- Current Scenario(cont….) 08-Mar-13 4

5. License required:- - Gumasta (shop and establishment) - Food and health license Area- 400 sq,ft /- Jogeshwari (East) 300 sq ft/- Storage room Why This Place Average sale- Rs 20000/- to Rs 25000/- Rs 25000/- to Rs 30000/- Profit margin- 10-15%. Customers- 100-1 50 per day. Rent -25000/- per month. Current Scenario (cont…) 08-Mar-13 5

6. Labor- 2*250/- per day Labor Source: Local citizen Capital requirement: Competition: High Competition manage: 1) home delivery 2) Free 1Kg Sugar 3) Credit Facility Seasonality effect: Minor Transportation and storage : Inventory management: Ease of entry: 08-Mar-13 Current Scenario (cont…) 6

7. Study the market. Develop a business plan. Obtain a loan. Document your general store business structure. Apply for a business license. Lease a strategically located storefront. Visit other regional general stores in your city, town or region. Order your general store's wholesale merchandise. Hire friendly store employees. Steps to be followed 08-Mar-13 7

8. Business Model 08-Mar-13 8

9. Our Strategy in opening a General Store Lakshmi General Store 08-Mar-13 9

10.  Where two streets meet. Strategically located to take advantage of the traffic . Centre of the neighbourhood.  Location costs. Competition and neighbours. Location 08-Mar-13 10

11. Place – Jogeshwari East( poonam nagar ) Ownership- On Rent Area – 800 Sq Ft /- 200 Sq Ft /- Ware house Rent – Rs 35000/- Reason- Newly Developed Residential We Selected 08-Mar-13 11

12. 08-Mar-13 12 beverage Ice Cream ENTRY &EXIT

13. Selling loose items under Lakshmi store brand. Staple food. Dairy product. Beverages. Health and care product. Stationeries. Chocolates. Snacks. Dry fruits Pickles and Spices.......ETC. Products 08-Mar-13 13

14. Investment - Rs 30,00,000 Patners - Six Patners =Rs 20,00,000 + Investors = Rs 10,00,000 Or Bank= Rs 10,00,000 @ 13.5% Calculation : Loan for a year Interest -Rs 135000/- Capital and Shop design 08-Mar-13 14

15. Store - on Rent Shop Design - Full Furnished (Rs 3,50,000) Wooden =125 per cubic glass= 750 sq.ft loose tool= Rs 50000/- A.C= Rs 40000/- 1.5ton ( O’GenRal ) Area - 800 sq,ft /- + 200 sq.ft warehouse Per day income- Expected Rs 30000/- Capital and Shop design(contd..) 08-Mar-13 15

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17. TAN (Tax Collection & Deduction Account Number)-( Rs.999) VAT/ CST Registration (Rs.7,499) Shops & Establishment License or Gumasta license ( Rs.3,999) PAN card (Rs 499) License 08-Mar-13 17

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19. Supplier Capacity and Reliability. Credit terms. Proximity and Distance. Competitive Pricing. Exchange Default product. After Sales Support. Up to date Product Range. Lower waiting times - systems efficiency. Criteria for Supplier 08-Mar-13 19

20. Agencies HUL (3) Chocolates Personal Care Home Care Food & Drink 08-Mar-13 20 Our Supplier

21. Quality Fair price Credit Facility Free home delivery Update product (no expiry product) Free gift on bill amount starting from Rs 500/- Customer Service 08-Mar-13 21

22. Competitors 08-Mar-13 22

23. Going online 08-Mar-13 23

24. SWOT Analysis Strengths Bargain Easy Access Quick Delivery Quality Food Grains Weakness Private Labels Pricing Economy of scale Opportunities Expand as an organized supermarkets 25 stores in Delhi under the banner of Provision Mart are joining hands to combine monthly buying BombayBazar & EfoodMart Threats Super markets & Hyper markets with 2-5 Kms of Radius Foreign player like Walmart whose operations are too strong

25. Target Customer Revenue expectation Profit margin Financial 08-Mar-13 25

26. Turnover (Sales) Expense Employees salaries Furniture & fixtures Rent Electricity Transportation vehicle Online portal & e-billing Other miscellaneous exps Profit margin (13%) Break even point 1,10,00,000 Rs approx 95,00,000 Rs 15,00,000 Rs 2 years Revenue Model 08-Mar-13 26

27. Normal Store Mess Lazy labor No proper home delivery Less managed Out of stock Lakshmi Store Organized Active labor On time delivery Well managed Inventory well manage 08-Mar-13 27 Comparision

28. Thank you 08-Mar-13 28