retail bike shop..new_am

8/8/2019 Retail bike shop..new_am

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A Retail Bike Shop in New Delhi, India

Navjot & Julia junge


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Agenda

VisionMissionSWOT analysis

STEP analysisObjectivesStrategyImplementationKPI sFinancial overview


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What we offers.

A ll brands of bikesOffers services like maintenance andrepairingCompare the prices and featuresAccessories and parts which are installed by

certified mechanicsEasy bike loan serviceInsurance service


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BENEFITS OF T W

O WH

EELERSEconomical Price

Fuel Efficient

Safety

Comfort Level


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V I IO

Our vision is to become anestablished, multi brand bike sellingretail shop in New Delhi, India.


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M ISSI ON

Our mission is to sell maximum variety

of bikes offering high quality service.


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STEP Analysis

Social:-Total population of Delhi: 14 mio.-Student population: 0,3%--- Target group: 16-28 years old

Economic:- 2nd largest two-wheeler producerin the world

-

2nd

fastest growing economy inthe world-Purchasing power per capita(middle class) inDelhi: 1100 / month

Political:- Easy bank loan @ 8% p.a.- Stable democracy

- no strict labour regulations- Tax policies helpful forautomobile industry

Technological:- New technologies used invehicles- Brand of bikes has increased

Sources: h ttp://www.energybulletin.in;www.nationmaster.com;ww.financialexpress.com;economictimes.indiatimes.com


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S W OT Analysis

Strengths:

V ariety of bikes offeredLocation near campusCertified mechanicsLow lease rates

Offer bike services

Weaknesses:

New in the marketplaceMost of the target market returns

home during the summerHigh cost of capital

Acceptance by consumers

Opportunities:

22 colleges in area provide largeand ever-changing marketGroup ridesSale of bike clothesLack of competition with certain

brands will allow higher marginsGrowing economy

Threats:

Competing bike shops alreadyestablished with customer bases Weather too hot and rainycauses fewer people to rideHigher rate of Fatal AccidentsIf Petrol prices goes down


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Objectives

Company obje cti e s:

90% st er satisfactifferi g iffere t q ality f i es at e r f

I tr ce val e a e servicese at least 3 Retail s i c i g 3 year

F inan cia l obje cti e s:

I crease reve e y re airs a ai te a ce f i i15 % er year

ac ieve at least 1 0% I crease i sales every year


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FIN A NCI A L OV ER V IE W FIN A NCI A L OV ER V IE W

break even point: november 20

Total profit in year : 60.000Total profit in year 2: 80.000Total profit in year : 80.000


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S trategy:

Off ering variety o f Bikes Brands at one roo fT rain sales sta ff in two wheeler knowledgeAf ter sales service should be good and fastRegular customer surveys to check i f we meet 90% satis factionPromotions i.e. Festivals DiscountsFirst shop in ., second in

Optimization of PromotionParticipating in Sports events

Flyers and newspaper adsO nline advertising


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ST A FFST A FF

Sales sta ff needs to be able to:

Ex plain the items to the sales person, what is specialabout them.

Inform about the sa fety regulations.Sales technique .Sales person pro f ile: attitude, active li fe style, out -

going personality.


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ST A FF PER S H OPST A FF PER S H OP

Staff per shop:

1 shop manager

2 Certi f ied mechanics

4 Helpers

3 Sales person


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OV ER V IE W :OV ER V IE W :First year overview:

Start retail business in , and providing di ff erentbrandsGet attention by participating in sports events

Gain regular customersSecond year overview:

Increase production and sales volumeStart 2nd retail bike shop in another part o f Delhi, i.e in

Third year overview:Increase salesAdd new productsFix a new target cit y


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A ctivity JAN FEB MAR APR MAY JUN JLY AUG SEP OCT NOV DEC

1 Get Licence

2 Lease a shop and refurnish it

3 Buy and Install Furniture, interiors, equipment

4 Tie-up with bike manufacturers

5 Tie-up with Banks and insurance companies

6 Hire & Train staff

7 Introductory Advertising

8 Start business

9 Advertising

10 Promotions

11 Customer feedback

FIRST YEAR

1. Get local authority license, fiscal tax number and VAT license for the shop at North Campus until 31st of january.2. Lease a shop of about 500 m, contract signed until 15.02.2011. Sign contract with electricity provider until 20.02.2011.

Shop refurnished until 28.02.2011.

3. Buying and installation of equipment, furniture and computers (1 EPBX system, 2 LCD TV's, 4 computers and 2laptops) in showroom until 20.02.2011, everything installed by 05.03.20114. Contract signed with 6 manufactures by 31.03.20115. Contracts signed with 3 banks for bike loan service and with 3 insurance companies providers by 31.03.20116. Hiring of 13 employees and train them(2shop manager,4sales person, 3 certified mechanics,4 helpers). 90% complete

training period successfully. Sign contract with those who pass the training successfully by 31.03.20117. 1 month before opening-event:advertising in 5 local shopping malls and 5 ads/week on one local cable TV channel by

31.03.20118. Inauguration of showroom on 01.04.2011 with 300 Guest9. 4000 flyers/month,3 ads/week in two local daily newspaper & 1 ad/month in auto magazine.10.Promotions: inauguration discount (3% - 5%) and festive discount (5% - 7%)11. Questionnaires: 10 questions, 5 points for each, 50 maximum points, we want 45 points => 90% satisfaction


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Activity JAN FEB MAR APR MAY JUN JLY AUG SEP OCT NOV DEC

1 Performance Assessment

2 Web-site

3 Install Furniture, equipment (Accessories )

4 Hire and Train Staff (Accessories)

5 Start auto accessories

6 Advertising

7 Promotions

SECOND YEAR

1. Evaluation of Company Performance ____________________2. Website up and running by 31.01.20123. Installation of furniture for Accessories in showroom by 28.02.20124. Hiring of 3 employees (2shop manager) 90% complete training period successfully. Sign contract with

those who pass the training successfully by 28.01220125. Start auto accessories on 04.03.2012 with 100 Guest6. 30 ads/week on two local radio stations, 2 billboards (01.2012 - 06.2012) and 2 billboards (07.2012 -

12.2012)7. Promotions: rebates in festivals for car sales (2% - 5%), for accessories (5% - 10%)


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A ctivity JAN FEB MAR APR MAY JUN JLY AUG SEP OCT NOV DEC

1 Performance Assessment

2 Find a location (Second Showroom)

4 Buy and Install Furniture, interiors, equipment

5 Reallocate staff

6 Hire Staff

7 Train staff

8 Introductory Advertising

9 Start business(Second Showroom)

10 Advertising

11 Promotions

THIRD YEAR - 2013

1. Evaluation of Company Performance ________________________by 31.01.20132. Lease a shop of about 500 m, contract signed until 15.02.2011. Sign contract with electricity provider until Shop

refurnished until 15.01.20133. Installation of equipment, furniture and computers (1 EPBX system, 6 LCD TV's, 2 computers and 4 laptops) in

showroom by 30.04.20134. Reallocation of staff (1 sales / advertising staff, 1 back office staff, 1 CRM staff) from first to second showroom by

15.03.20135. Hiring of 10 employees ( shop manager,4sales person, 3 certified mechanics,4 helpers ) 90% complete training period

successfully. Sign contract with those who pass the training successfully by 31.03.20136. 30.000/pamphlets, 10 ads/week on two local radios and 1 ad/Day in one local newspaper up to 30.04.20137. Inauguration of second showroom on 05.05.2013 with 300 Guest8. Three ads/month in two auto magazines, 4 billboards (01.2012 - 12.2012), 100.000 promotional e-mail (01.2012 - 12.2012)9. Promotions: rebates in inauguration (3% - 5%), in festivals (5% - 7%)


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YEAR 2011

Financial Analysis - in euros

S.NO ActivitiesQ1 Q2 Q3 Q4

TotalJan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

CASH - IN

1 Bank Loan 0 30000 0 0 0 0 0 0 0 0 0 0 30000

2 Associates Capital 20000 20000

3 Sales Revenue 0 0 0 8900 8900 8900 8900 8900 8900 8900 10500 10500 83300

Total 133300CASH - OUT

1 Cost for License 100 0 0 0 0 0 0 0 0 0 0 0 100

2 Lease Cost (Rent) 0 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 11000

3 Euipment charges 0 11500 0 0 0 0 0 0 0 0 0 0 11500

4Equipment Installation

charges 0 100 0 0 0 0 0 0 0 0 0 0 100

5Other costs(Electricity &

Internet) 0 150 150 150 150 150 150 150 150 150 150 150 1650

6 Professional Bakers Salary 0 1800 1800 1800 1800 1800 1800 1800 1800 1800 1800 1800 19800

7 Owner Salary 0 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 11000

8 Staffs Salary 0 1050 1050 1050 1050 1050 1050 1050 1050 1050 1050 1050 11550

9 Training cost 0 250 0 0 0 0 0 0 0 0 0 0 25010 Advertisement Flyers 0 200 0 0 0 0 0 0 0 0 0 0 200

11Advertisement in newspers

& magazine 0 120 120 120 120 120 120 120 120 120 120 120 1320

12 Inaugaration cost 0 1000 0 0 0 0 0 0 0 0 0 0 1000

13 Other Expenses 0 50 50 50 50 50 50 50 50 50 50 50 550

14 Homepage cost 0 0 0 0 0 0 100 0 0 0 0 0 100

15 Bank Interest 0 190 190 190 190 190 190 190 190 190 190 190 2090

Total 72210Profit in Euros = (Cash In - Cash out) = 61090


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YEAR 2012




CASH - IN

1 Retained earnings 61090 0 0 0 0 0 0 0 0 0 0 0 610902 Sales Revenue 8900 8900 8900 20000 20000 18000 18000 20000 20000 20000 22000 22000 206700

Total 267790

CASH - OUT

1 Cost for License for 2nd shop 0 100 0 0 0 0 0 0 0 0 0 0 100

2Lease Cost (Rent for both

shops) 1000 1000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 21000

3 Euipment charges 0 10500 0 0 0 0 0 0 0 0 0 0 10500

4Equipment Installation

charges 0 100 0 0 0 0 0 0 0 0 0 0 100


Internet) 150 300 300 300 300 300 300 300 300 300 300 300 3450

6 Owner Salary 1000 1000 1000 1200 1200 1200 1200 1200 1200 1200 1200 1200 13800

7 Staffs Salary 1050 2100 2100 2100 2100 2100 2100 2100 2100 2100 2100 2100 23100

8 Training cost 0 0 0 250 0 0 0 0 0 0 0 0 250

9Advertisement Flyers (for

both shops) 200 0 200 0 0 0 0 0 0 0 0 0 400

10Advertisement in newspers

& magazine 120 120 180 240 240 240 240 240 240 240 240 240 2580

11 Inaugaration cost 0 1000 0 0 0 0 0 0 0 0 0 0 1000

12 Website development cost 0 0 0 0 0 0 150 0 0 0 0 0 150

13 Other Expenses 50 100 100 100 100 100 100 100 100 100 100 100 1150

14 Bank Interest 190 190 190 190 190 190 190 190 190 190 190 190 2280

Total 79860Profit in Euros = (Cash In - Cash out) = 187930


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YEAR 2013




CASH - IN

1 Retained earnings187930 0 0 0 0 0 0 0 0 0 0 0 187930

2 Sales Revenue 22000 20000 20000 22000 22000 22000 22000 22000 22000 22000 24000 24000 264000

Total 451930

CASH - OUT

1Lease Cost (Rent for both

shops) 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 22000


Internet) 300 300 300 300 300 300 300 300 300 300 300 300 3600

3 Staffs Salary 2100 2100 2100 2100 2100 2100 2100 2100 2100 2100 2100 2100 23100

4 Owner Salary 1200 1200 1200 1500 1500 1500 1500 1500 1500 1500 1500 1500 15900

5Advertisement Flyers (for both

shops) 100 0 0 100 0 0 100 0 0 100 0 0 400

6Advertisement in newspers &

magazine 240 240 240 240 240 240 240 240 240 240 240 240 2880

7 Market research 0 0 0 0 0 0 0 100 100 100 100 100 500

8 Motor bike cost 0 0 0 0 0 0 0 0 400 0 0 0 400

9 Delievery Boy salary 0 0 0 0 0 0 0 0 100 100 100 100 400

10 Other Expenses 100 100 100 100 100 100 100 100 100 100 100 100 1200

11 Bank Interest 190 190 190 190 190 190 190 190 190 190 190 190 2280

Total 72660

Profit in Euros = (Cash In - Cash out) = 379270


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C ONCLUSI ON :C ONCLUSI ON :

N ew Delhi is the perfect place to start our businessWith a minimum 9% increase per year, we will becomeprofitable in the end of year alreadyThe risk is very low, as the economy is increasingcontinuously and with this our target market


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Th ank you very muc h for your attention!

A ny questions?

retail bike shop..new_am

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