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PADMASHREE DR. D.Y. PATIL UNIVERSITY

DEPARTMENT OF BUSINESS MANAGEMENT

C.B.D., NAVI MUMBAI 400614

MBA - CORE

FINANCE

SUBJECT

ENTERPRENEURSHIP

TOPIC

BUSINESS PLAN OF

THAPAD KIRANA DUKAN

SUBMITTED TO

PROF. RASHMI GOPINATHAN

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Submitted By

GROUP I

NAME ROLL NO.

Geeta Choyal 09099

Ketki Shah 09100

Anuja Vaidya 09081

Anuja Hingorani 09118

Neha Kumari

Suruchi Bansal 09112

Chitra Sakharkar 09077

Prachi Desai 09093

Kashmira Mogal 09095

Smruti Patel 09088

Ankit Bhangadiya 09132

Ashwini Jalan 09128

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CONTENTS

Sr.no. Topic Pg. No.

1. Executive Summary geeta

2. The company Genesis

Vision

Mission

Goals and objectives ketki

3 Organizational structure smruti

4. Operational plan kashmira

5. Marketing plan

Market analysis neha

Market research

Target customer chitra

Competition and strategy

Marketing strategy anuja

Promotional strategy

Distribution channel

6. Strategic plan

Sales strategy anuja v

Warehousing and transportation

Competitive strategy

Key success factors prachi

Future products and service

Risk management

7. Financial plan

Company incorporation details ashwini

Sales forecast

Investment details suruchi

Utilization of funds

Financial performance measures

Break even analysis ankit

Exit strategy

Key financial assumptions

Product costing statement

Profit and loss statement

Balance sheet

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Cash flow statement

1. EXECUTIVE SUMMARY

India is an agricultural country and most of the people live in villages. The

villagers live in the midst of natural surroundings. Some villages are big but others

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are comparatively smaller. They are generally cut off from the cities and have

different kinds of life.

But the villagers life has some serious drawbacks out of which the major one is to

meet their daily basic needs. Taking this into consideration we have come up with

the project in Takarda village, which is located in the Outskirts of Thane.

There are more than 35 houses and the population is approx. 100-150. The

villagers are socially knit together. They are mainly involved in cultivation and

during their off season they work at construction sites. There are no suitable

arrangements for their education or for the education of their children. There is a

Marathi medium school at primary level.

THAPAD KIRANA DUKAN

Genesis:

After interacting with the villagers the team came up with the various ideas like

pickle making, selling of food grains and vegetables produced by them in their

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own farm, and providing daily routine grocery items. The first two ideas were not

possible as pickle making was time consuming for the household wives and the

quantity of food grains and vegetables they were producing is not even self

sufficient to satisfy their own needs for the entire year.

We found out that they were not able to meet their basic needs easily as they have

to travel a long distance of 2 kms by walking even to buy a small item like biscuits,

toothpaste, etc. so the villagers were ready to cooperate with us and they all were

in full support of this idea. One of the villagers Ravi Thapad was willingly ready

to start with a grocery shop provided financial support is being given to him.

Vision:

To become an established community grocery shop which can meet the needs of

villagers.

Mission:

The mission of THAPAD KIRANA DUKAN is to provide Takardas residents

and visitors with an upscale grocery store which is a combination of quality and

affordable price grocery items which are not available in the village till now.

Goals and Objectives:

THAPAD KIRANA DUKAN has the following goals and objectives:

1. Create a grocery that exceeds villagers expectations and help to fulfill their

basic needs.

2. The grocery shop will provide quality products and services in a cost-

effective manner.3. Our shop will be providing great and friendly service and will be involved in

helping the community.

4. The shop will be located in safe and clean environment.

5. Achieve cash flow self-sufficiency by the end of the first year.

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2. ORGANIZATIONAL STRUCTURE

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4. OPERATIONAL PLAN

Being a micro enterprise initially the focus of the operational plan is not to go

for higher priced products and also the income generation of the villagers is

very low being agriculture as their main occupation. The operation process is

kept very simple which can be easily managed by the owner Ravi Thapad.

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1.Wholesale:Firstly Mr.Thapad and his brother will purchase the items from the

wholesale market on a monthly basis.2.Transport

Then the items from the wholesale market will be transported to Takarda

village by a tempo.

3. StorageThen the items will be unloaded from the tempo and will be stored at Ravi

Thapads house and as per the requirement the items will be kept in the

shop from the storage.

3.Distribution

Finally the products will reach to the ultimate consumer.5. MARKETING PLAN

Market Analysis: According to our survey we have found that there is no

facility for villagers to purchase the day to day household grocery items. Even to

buy small items like matchbox, soap, biscuits etc. they have to cover a distance of

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2 km by walking as the travelling facilities are not available. The demand of the

villagers is to meet their basic needs within the village with convenience. After

analyzing all these aspects we have decided to come up with the Business plan of

setting up a small Grocery Shop in the village which can fulfill the daily routine

needs.

Market research:

In order to understand the demand and needs of the villagers mainly primary data

is used for market research.

Primary data was collected by:-

1. Talking to villagers by personally visiting their homes.

2. Talking to Mr. Ravi Mane (School Teacher) and Mr. Ladkya Thakare (Head

of village- Panchyat), we got the information about Takarda Village.

3. Rotary club

Target Customers:

At the initial stage it would be seen that the targeted customer are from the village

itself.

1. The target customers are villagers.

2. Other nearby villages.

Competition & strategy:

At the initial stage, there is no competition for THAPAD KIRANA DUKAN as

there is no other shop in the village.

But in future there is possibility that other competitors might come up with the

similar idea if our shop is successful in the village.

So our strategy would be to capture major portion of market share before a similar

grocery shop come up in near future.

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Marketing Strategy:

Product:

1. The products in the shop are kept as per the need of the villagers and the

products which are often required for their daily routine life.

2. All the products are of good quality and are branded products.

Products which will be provided by THAPAD KIRANA DUKAN at initial

stages are:

Sr. No. Items

1. Biscuits

2. Kurkure and other wafers

3. Sugar

4. Hair oil

5. Chocolates

6. Toothpaste powder

7. Tooth brush

8. Garam Masala

9. Chilly powder

10. Dhaniya powder 11. Bathing Soap

12. Washing soap

13. Washing powder

14. Shampoo( Re. 1)

15. Candle

16. Matchstick

17. Tea

18. Salt

19. Phenyl20. Maggie

Place:

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THAPAD KIRANA DUKAN is located in Takarda village which is in the

outskirts of Thane.

Price:

1. As the main occupation of villagers is agriculture high income generation is

not there, so they prefer to buy mainly small packaged products as their cost

is low.

2. On an average people in the village are willing to pay around Rs. 5- 20 for

buying a particular item.

3. All the items are available at the affordable price.

Promotional Strategy:

1. Mouth Publicity in the village

2. Advertising through Banner ( THAPAD KIRANA DUKAN, TAKARDA)

Distribution channel:

One Level distribution channels would be followed at the initial stage. Firstlyproducts will be purchased from whole seller and is then brought to the shop

and finally it reaches to the consumers.

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6. STRATEGIC PLAN

The main strategy of THAPAD KIRANA DUKAN is to provide the basic needs

of the villagers at affordable price and best quality which will enable us to capture

large market share.

Rotary club of Hiranandani estate (thane) known as Service above help will help

grow and develop our shop.

Sales Strategy:

Our shop will mainly sell the items which are required in day to day life of the

villagers which will be available at the affordable price.

Warehousing and Transportation:

Quality products at the lowest cost can only be achieved through a proficient

distribution system.

Items will be brought from the wholesale market from Thane once in a month by

tempo.

Keys to success:

The keys to success for THAPAD KIRANA DUKAN in village will be:

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Reputation: Every customer visiting our store will want to return and will

recommend us to their friends and family. Word of mouth marketing will be a

powerful key for our business.

Customer Service: Friendly service will be of the utmost importance.

Location: Provide an easily accessible location for villagers convenience as

the shop is located in the midsts of village.

Product/Environment: Offer a variety of products which will be sold at a

fair price in a clean, authentic, comfortable environment.

Convenience: Our villagers will know that they can get what they need at

our shop for a fair price and this will reduce their need to travel to thane.

Future products and services:

In future the shop will offer variety of products like oil, dal, ghee, etc.

Later on we have planned to bring REFRIGERATOR so that the shop can

provide cold storage items like cold drinks, perishable items such as fruits.

Risk Management:

1. Technology risk: Initially modern and sophisticated storage system is not used

so there is a possibility of wastage of some products.

2. Market risk: New competetitors might come up in the near future.

3. Supply chain risk: Co-operation from wholesale marketers at the initial stage

is a risk

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7. FINANCIAL PLAN

Incorporation Details:

The villagers of TAKARDA were in need of a shop which could provide them

their daily necessities by which they can purchase items from the village itself.

Therefore we came up with a grocery shop which had occupied one of the house

place (owner- RAVI THAPAR).

Sales Forecast:

Considering the sale forecast the revenues are expected to be increased

from the 1

st

year to 2

nd

year (Rs 29614) and from the 2

nd

year to 3

rd

Year(Rs. 49995) of the revenue as seen below-

Revenue Projections

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Investment Deal:

Here the investment done is with the help of Rotary club of hiranandani

estate (thane) known as Service above help.

Utilization of funds:

Fixed assets: Rack - 1500

Total product cost 3610

Marketing cost 250

Distribution cost - 200

Financial Performance Measures:

Profit Projections

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Break Even Analysis:

The break even achieved 1st

year is Rs 878 which is sufficient to recoverour fixed cost i.e. Rs 150

Key Financial Assumptions:

The above financial projections have considered the following key

financial assumptions:

100% of the product will be sold considering the demand of the

village.

Depreciation is calculated on straight line method @ 10% per

annum.

Change in working capital is determined on yearly cycle

We have assumed a growth rate of 10% in each quarter of 1st

and2nd year and 12% in each quarter of 3rd year.