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Kirana Store

Group MembersRitwik Sharma(90)Karan Sharma(87)

Rahul Sheth(91)Prabhakar Yadav (118)

Rohit Pawar(66)DeepakVasu(113)

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It is not easy to compete with kirana stores: Rajiv Lal (Senior Professor of Retailing at

Harvard Business School )

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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

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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….)

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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-100-150 per day. Rent-25000/- per month.

Current Scenario (cont…)

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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:

Current Scenario (cont…)

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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

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Business Model

By selling narrow product

Penny candy to

Large consuma

ble product

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Our Strategy in opening a General Store

Lakshmi General Store

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 Where two streets meet. Strategically located to take advantage of

the traffic . Centre of the neighbourhood.  Location costs. Competition and neighbours.

Location

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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

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bevera

ge

Ice C

ream

ENTRY &EXIT

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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

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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

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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..)

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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

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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

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Agencies HUL (3) Chocolates Personal Care Home Care Food & Drink

Our Supplier

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Quality Fair price Credit Facility Free home delivery Update product (no expiry product) Free gift on bill amount starting from Rs

500/-

Customer Service

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Competitors

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Going online

SWOT AnalysisStrengths

•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

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Target Customer Revenue expectation Profit margin

Financial

Category 1

Category 2

Category 3

Category 4

0

2

4

6

Financial

Series 1 Series 2 Series 3

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Turnover (Sales) Expense1) Employees salaries2) Furniture & fixtures 3) Rent 4) Electricity 5) Transportation vehicle6) Online portal & e-billing7) 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

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Normal Store1. Mess2. Lazy labor3. No proper home

delivery4. Less managed5. Out of stock

Lakshmi Store1. Organized2. Active labor3. On time delivery4. Well managed5. Inventory well

manage

Comparision

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Thank you