Background

The beginning of Online shopping can be traced as far back as 1994 when Pizza Hut became the

first pizza chain to offer online ordering or home delivery services on a test basis in Santa Cruz,

California. They were closely followed by amazon.com in 1995, which created a revolution in

how people do their shopping. Though online shopping has become common place in the

western and European countries it has yet to become popular in Bangladesh. There are only a

few companies which have started online businesses at a limited scale for Bangladesh. This

paper explores how Store 2 Door can live up to the prospects and feasibility of online business in

Bangladesh; through supply of fresh perishables to our customers. Analyzing all the risks

associated with such businesses and the development of an effective business model for such an

operation in Bangladesh. The study reveals a substantial scope for creating an online superstore

in Bangladesh. There is a latent demand for such a service which can be realized if security and

trust can be ensured. The online survey reveals that interested shoppers give maximum

importance o safety and security of transactions as well as the variety of products available. A

further research must be conducted to design products assortment. The business model for this

venture targets the urban inhabitants and how the business can develop methods for the safety

and security of the transactions in the business processes. Security is the most important risky

aspect associated with this line of business. Security risks are found at both the supplier and the

users end. The users are most concerned of the security of transaction and their personal

information. The suppliers are concerned about the security of the website as the lack of

cybercrime control poses increasing risks for any business from hackers, spammers and malware.

The use of other forms of security such as security cameras will allow potential customers to get

a live view of the warehouse by which they can check inventory quality and hence create

revolution in the online shopping industry. In conclusion, a online superstore has great prospects

in a growing economy like Bangladesh if supported by the country’s infrastructure and macro

environmental factors.

There is a strong possibility that e-commerce is going to be a popular concept in Bangladesh.

The justifications are provided as follows:

I. People’s computer literacy and internet accessibility are rapidly increasing these days. They

are becoming more prone to surf through different websites and make a purchase decision.

II. Making a purchase online will be convenient for buyers as they don’t have to go to the store

physically and product delivery will be done at their convenient time and

place.iii. The number or credit and debit card users are rising day by day. Thus, it increases the

likelihood of online payment. Because of the aspects mentioned above it can be assumed that the

concept of online superstore has an explicit demand and this report analyzes the feasibility of

such an online superstore

Introduction

E-business is one of the fastest growing business sectors in the world. The usage of Internet

around the world has grown over 400% from year 2000 to the year 2010. In Bangladesh, 3.46%

of total population, a staggering number of 5,501,609 people is using internet actively which was

only 100,000 back in the year 2000. These numbers encourage companies to build websites and

to come up with new ways of serving their customers online. In many cases in B2C businesses

this means creating an online store or a “web store”. In addition to that, the number of companies

that operate almost fully through the internet is growing all the time at a fast pace. The great

impact that the Internet has had on the global marketplace is described aptly by Peter F. Drucker:

“The explosive emergence of the internet as a important, perhaps eventually major, worldwide

distribution channel for goods, for services, and, surprisingly, for managerial and professional

jobs is profoundly changing economies, markets, and industry structures; products and services

and their flow; consumer segmentation, consumer values, and consumer behavior; jobs and labor

markets. As lives become busier and fast paced, people look for faster and more convenient ways

of accomplishing routine tasks. The task of doing daily shopping to meet day to day household

needs is one such task that people seek to simplify. To support this need online shops and

superstores are becoming a necessity nowadays. The influence of Globalization has drastically

changed the socio-economic structure of Bangladesh in the past two decades. The fast pace of

our western counterparts has filtered in to our societies to a certain extent as we try in and

compete in a global market. The changing lifestyles, the increasing trend of women in the

workforce and the busy roads of the big cities have had significant impact on how households

run. As people look for convenience in every aspect of life, the need for services which fulfills

this need increases. Online superstores is one such service which can ease the lives of its users by

allowing them to complete their household and regular shopping in the comfort of their homes

or offices However, the concepts of shopping online and online superstores are still new in

Bangladesh.

This report will provide an outlook on how Store 2 Door would enter the market of online

retailing through providing fresh fruits and vegetables to the customers and taking consideration

of all the issues before starting an online superstore in Bangladesh. This report concentrates

mainly on the feasibility of the Store 2 Door, to conduct a need analysis of such a service in

Bangladesh, to develop the business model for an online superstore in Bangladesh based upon

the existing superstores in the country and online superstore abroad, to identify potential

problems and risks associated with online superstores in Bangladesh. In Bangladesh there are

several websites who provide some features of e-commerce, i.e. getting to know about the

product, price, and other attributes of the item to be purchased / sold. However in most cases the

buyer and seller will have to meet in person, take the delivery of the product, and make the

payment. There are only a limited number of sites selling very specialized products options for

automated delivery and online payment.

Mission Statement

Store 2 Door is mainly based on an online construct, therefore it is considered more technically

oriented with the internet. With the conjunction of our customers the business tends to operate

and function. The sole mission of our business is to provide qualitative fresh perishables to the

customers, through execution of an effective online and service based system. Our services are

solely based on their demand, to provide the fresh products delivered straight to their doorsteps.

We strive to enrich the satisfaction of our customers, by providing them with unparallel service

in the most efficient manner. This is turn would prove successful for the business. It is the duty

of the business to perform with integrity and seek to balance the satisfaction of the needs of our

customers, associates, consultants, suppliers and the community. Our mission is to help our

customers with fresh fruits and vegetables which have become near impossible to be found in the

local retail shops. Fresh perishables are hard to find in any shops due to the increased usage of

adulterated chemicals used in these products so as to increase sales; therefore our business would

help customers get access to fresh and qualitative vegetables and fruits.

Vision Statement

The vision through which our business structure rides on is to allow the distribution of fresh

products of nature. Healthy eating is essential so as for the population to be productive and

active. Therefore it is the very duty of Store 2 Door to provide the best and fresh gifts of nature

without the mixture of any harmful chemical and destroying the very integrity of nature. These

factors are essential to note, as we are very few businesses that are actually performing this duty;

with the very addition of online service so as to have a more convenient approach for the

customers to purchase our products.

Industry Analysis

PESTLE Analysis:

The use of an external PESTEL analysis helps to investigate and examine the current market

where the business is competing. The PESTEL analysis will scan through all the external forces,

which influences the business. Such factors are the macro-environment variables that will affect

the decisions of the managers within an organization. They are categorized into 6 major portions

Political, Economical, Social, Technological, Environmental and Legal. All these variables tend

to affect the business and industry as a whole, therefore it is essential to monitor and analyze

these external factors. Exogenous shocks are common for any business to be affected with; as a

result business must forecast and evaluate these different aspects of the external environment. In

the context of Bangladesh, businesses are more susceptible to these factors. Changes in tax

changes, new laws, trade barriers, demographics and government policy have a huge impact on

the business which operates within that nation.

Political

These refer to government policies such as the degree of intervention in the economy and other

market forces. Political decisions can impact on many vital areas for business; from both

managerial and strategic perspectives. In Bangladesh political unrest and instability is common;

therefore affecting business. Changes in political regime are also a common scene; this in turn

causes changes in various government policies. Shifts in government policies causes changes in

various rules and market regulation, this as result affects many businesses as they have to abide

by these rules and take necessary steps accordingly. Such shifts are time consuming and disrupt

the current market equilibrium. Political intervention also hinders the free market forces of

demand and supply, therefore affecting price and other market anomalies. Changes in tax levels

tend affect the supply in the market as it influences the cost of production. Moreover, it is very

difficult to gather start up funding for as small business in Bangladesh. Most banks require

showing some influential guarantor, mainly from a political party. Sometimes it is also necessary

to make please the associated officials of the banks, mainly the state-owned banks.

Any business needs public utility services like Electricity, Gas, Water, Telephone etc. to run

efficiently. However it is very tough to get these connections. Businesses need to pay a

handsome amount o bribes to the concerned government employees providing access to the

services. In case of telephone we might have to wait for more than years to get connected. All

these hazards can hamper our Small Business.

On the other hand the government also provides various subsidies; these grants by the

government can be advantageous to businesses. Such assistance by the state can help to improve

the supply- side of producers or suppliers (farmers); Thus, reducing the cost of such perishables.

The agricultural sector of Bangladesh receives the most number of subsidies whether through

local governments or through foreign donations or debts.

Economic

Economic factors constitutes of aspects such as interest rates, taxation changes, economic

growth, inflation and exchange rates. These sub-factors tend to affect both the internal and

external management of business. The government must also ensure proper and efficient

economic conditions to be satisfied in order to have a stable free flowing market. Therefore the

government uses various tools policies so as to maintain economical stability; such stability is

vital for businesses to operate successfully.

Bangladesh currently suffers from high interest rates, this increase the cost of investment and

borrowing. Such factors tend to discourage the inception of new businesses and financial credit.

Inflation is another major issue in Bangladesh, with increasing prices of necessary commodities

causing a lower living standard for the people. A high inflation rate also reduces the

competitiveness on the market. With inflation rates businesses are affected with high rising costs,

thus lower supply.

Most banks are unwilling and uncooperative when it comes to giving loans to SMEs. Apart from

the lobbying problem mentioned before, in most cases getting SME loans require prior

experience and collateral backing. Apart from that interest rate payments range from 10 percent

to about 22 percent. This would take up most of our profit margin in our starting year.

These various factors tend to reduce the economic growth of businesses and in turn reducing the

national income growth of the country. Bangladesh has major issues surrounding the economic

stability and freedom of businesses currently operating in the market.

Social

Through constant growth of population and greater use of the internet there is huge potential for

online businesses to operate and prosper. There are a greater number of activities going on social

networking sites which are providing the sales and purchase through online medium. There are

currently immense numbers of people who have access to the internet. These are potential buyer

of online retailing which indicates a huge market of this type of business in Bangladesh. People

are getting busier day by day, through the use of technology it has become easier to reduce cost

and have and save time. With lesser time to waste multiple tasks can be undertaken within a

short period of time. The time it takes to go to shops for shopping is getting difficult for people

like corporate executives or high-income earners.

In the urban regions, which are considered in this business model, the corporate executives and

other job holder people are more inclined to shop online rather than going there physically,

which provides the potential of a huge market. Currently businesses such as ClickBD and

Chokra.com are among the active online business to be functioning in the market, having similar

business pattern.

Technological

The use of Internet:

Bangladesh is one of the emerging countries in Internet usage in the world. The number of IP

addresses is proportionate to the number of people. The usage of the Internet has spread through

the country and the number of Internet attacks and viruses are quite low.

Low cost of technology:

Cheaper consumer electronics are made available in the current tech-market; therefore majority

of the people have access to personal computers. Cheaper internet is also another factor specially

in places such as Dhanmondi, Gulshan, Banani and Mohammadpur are among the hotspots for

have high-speed internet.

There are some technological issues which the business may currently face, such as the use of

credit and debit card are still not widely used by the people. This is due to various strict

government rules and regulations. The Government has not still fully authorized the use of credit

cards in various businesses. Especially in the case for online businesses where there are risks of

cyber crime. There are risks of exploitation using confidential credit card information that might

get leaked. The government also does not have the technology to supervise and monitor such

issues.

Legal

There are some legal issues for online shopping; although online retailers will be regulated with

the similar laws as normal local stores. Still the whole legal framework would be different. As

the legal infrastructure to stop online fraud and cybercrimes is yet to be developed both the

business of online stores, customers will face risks of being exposed to such incidents.

In Bangladesh getting through the bureaucratic and legal hurdles of starting a new business is

difficult. Explicit issues include the seven steps needed to start a new business. However there

are implicit issues as well such as Corruption, red tape problem, uncooperative behavior of

bureaucrats etc. getting through these hurdles without any backing is very difficult. The only

effective solution is to employ a 'dalal', a professional payer of bribes. For a fee these dalals can

purchase and complete the multiplicity of legal forms and deliver them to the proper persons, and

eventually extract the needed permission or document.

There are some strict rules during the inception of new businesses in the market. Other political

regulations would also restrict the actions of online retailers. Bureaucracy runs in many

government organizations, therefore monitoring and supervision would be tedious and time-

consuming. Lengthy paperwork and legal documents can also make the decision making process

slow and cumbersome.

Political instability and unrest has other issues affecting the structure of the industry.

Government intervention is never helpful, and disrupts the market forces of the industry.

Environmental

In Bangladesh natural disasters occur almost every year. In the past, the submarine cable which

is the back bone of internet connectivity in this country was cut down due to natural disasters. As

Bangladesh is connected with only one submarine cable, if it gets cut down then the entire

country is disconnected from the world. With limited connectivity through VSAT, and having

other major issues during the rainy seasons when connectivity is severely affected. Hence natural

disasters will have a tendency to cause major disruptions to online shopping.

The current business is based on agricultural product or perishables; therefore seasons tend to

play a major role in the cultivation of the key products for sale. Hence production of these

perishables also determines the pricing that are set. During unfavorable seasonal conditions or

during natural calamities, the supply of the agricultural products would be fall; thus affecting the

price. Because of the overdependence towards seasonal a factors, prices of the products would be

influenced. Common scenario were flood or other natural disasters my disrupt the supply flow of

agricultural products; thus

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: Clickbd,

Cholra.com

Porter’s Five Forces:

The main theme of the company is to provide with chemical free fresh fruits and vegetables with

premium pricing.Porter’s Five Forces help us to realistically assess potential levels of

profitability, opportunity and risk based on five key factors within an industry.

- The threat of entry of new competitors (new entrants)

- The threat of substitutes

- The bargaining power of buyers

- The bargaining power of suppliers

- The degree of rivalry between existing competitors

Threat of New Entrants

The main theme of the company is to provide with chemical free fresh fruits and vegetables with

premium pricing.As this concept is not very available but still there is high threat of entering new

competitors.

1.Not too expensive and easy to enter the business:

This business is not too expensive and entering the business is not that difficult,this is one of the

major reason of increasing threat of new entrants.And new entry quite easy so people will

interested to enter in this business.Manufacturing-based industries are more difficult to enter than

many service-based industries.As it is a service based business so new entry is more easier here.

2.Economies of scale:

These economies arise when firms that produce or order at larger volumes enjoy lower costs per

unit because they can spread fixed costs over more units,employee more efficient technology, or

command better terms from suppliers.As in our business we will order large volume of fruits and

vegetable ,it will be an advantage of ecomies of scale.Thia type of advantage will attract people

to enter in this business.

3.Minimum customer switching costs:

Switching costs are fixed costs that buyers face when they change suppliers. The larger the

switching costs, the harder it will be for an entrant to gain customers.But business like ours has a

minumum customer switching costs.This in another reason the risk of entrants is high.

4.Easy access to distribution channels:

As we are planning to get our fruits and vegetable from ashulia,this is a place where people can

easily access.This in one of the reason which make the easy access to distribution channels.In

such business middle intermediaries are minimized.As in this business there is high scope to skip

intermediaries and easy eccess to industry distribution channels,so threat of new entrants is high

here.

5.Government or other binding policy:

Government policy can hinder or aid new entry directly, as well as amplify (or nullify) the other

entry barriers.But government policy is not that difficult in such business like ours,so threat of

new entrants is high here.

6.Lucrative industry profit:

Barriers to entry are more than the expected ebb and flow that markets typically experience. For

example, when industry profits increase, one would expect firms to enter the market to take

advantage of the high profit levels, which will eventually result in reducing profits.If anyone

looks as if we're making a sustained profit, new competitors can come into the industry easily,

which may reason to reduce our profits.

The Results:

The threat of new entry is quite high.But we will try to make a strong position in the indutry by

providing the higher quality and maitining high standard.

Threat of Substitutes

The presence of substitute products can lower industry attractiveness and profitability because

they limit price levels. The threat of substitute products depends on:

1.Buyers' willingness to substitute:

In our business there is no substituesis that can identify,still if buyers are willing to substitute

than it might harm our company.

2.The relative price and performance of substitutes:

If the substitute product provide customer the relativly lower price without mainting the quality it

may harm our firm.

3.The costs of switching to substitutes:

Cost of switching to substitute is low in our firm.This in one reason which may harm our firm.

The Results:

There is very little threat of substitution.But still we are planning to observe the market and make

it fruitfull for our business.

Bargaining Power of Suppliers

Our business is largely dependent on suppliers.Without teustworthy and accountable suppliers it

is quite difficult to run a service based business like ours. If suppliers have high bargaining

power over a company, then in theory the company's industry is less attractive. The bargaining

power of suppliers will be high when:

1.Threat of forward integration:

The supplier group can credibly threaten to integrate forward into the industry. In that case, if

industry participants make too much money relative to suppliers, they will induce suppliers to

enter the market.Though we are planning to give the suppliers their deserving payment but still

there is an threat of forward integration.Because we have to maintain our product standard and

compete with the other competitors.Though those peoples way of providing fruits and vegetable

is not similar,still in some extent they are our competitors.

2.There are many buyers and few dominant suppliers:

Though our concept of delivering fruits and vegetable is new and unique but the supplies of

fruites and vegetable is not new.A lots of businesspeople are getting product from them.As the

suppliers have a lots of buyes ,so it will make their burgaining power more flexible.Which is a

disadvantage for us.

3.Reduce the quantity supplied:

The main theme of the company is to provide with chemical free fresh fruits and vegetables with

premium pricing.One of the main key is CHEMICAL FREE FRESH,that means QUALITY is

our main concern.But most of it depends on the supplier,If they are unable to provide us the

quality product it will be difficult for us to maintain our standard.

4.Low dependency on buyers:

The supplier group does not depend heavily on the industry for its revenues. Suppliers serving

many industries will not hesitate to extract maximum profits from each one.As we are dependent

on few credible suppliers,on the other hand they are not dependent on us they can charge higher

from us.

The Results:

As we know the best defense in mitigating the power of suppliers is to build win–win

relationships with suppliers or arrange to use multiple suppliers,we are planning to follow this

technique.

Bargaining Power of Buyers:

Buyers are the people / organizations who create demand in an industry.The bargaining power of

buyers is greater when-

1.Buyers threaten to integrate backward into the industry:

If buyers believe they can always find an equivalent product, they tend to play one vendor

against another.Buyers face few switching costs in changing vendors.As we are charging a littile

bit more from the current market the customer may sometimes ignore the quality and think of

alternative provider which may harm our business.

2.Incur low switching costs when they change vendors:

Switching cost is very low in this business,they can easily switch to other vendor it may harm

our buisness.

3.Price sensitivity:

Most of the people are price sensitive by nature.The product it purchases from the industry

represents a significant fraction of its cost structure or procurement budget. Here buyers are

likely to shop around and bargain hard, as consumers do for home mortgages.As we dont have a

option to burgain we may loose few customer who are price sensitive.

4.More demand within reasonable price:

Powerful customers – the flip side of powerful suppliers – can capture more value by forcing

down prices, demanding better quality or more service(thereby driving up costs), and generally

playing industry participants off against one another, all at the expense of industry

profitability.As to meet up with their demand and price it will kind of hard to maintain our

customer with quality.

The Results:

To mitigate the power of buyers,we try to seek to select buyers with less power to negotiate,

switch suppliers, or develop superior offers that strong buyers cannot refuse.

The degree of rivalry between existing competitors:

The intensity of rivalry between competitors in an industry will depend on:

For example, the intensity of rivalry is increased by the following industry characteristics:

1.Customer loyality:

There are a little competitors of our same pattern business,but those business peoples loyality is

high than ours as we are new in market.So in the first stage our customer loyality is low.

2.Brand identity:

As a new business our brand is in a initial stage.It will a little bit hard for customer to identify

our brand.It may help our rivals.

The Results:

Porter’s Five Forces can assist us to better understand these dynamics in a more objective

manner and hopefully make better strategic decisions as a result. This model used as a tool to

better develop a strategic advantage over competing firms within an industry in a competitive

and healthy environment. It identifies five forces that determine the long-run profitability of a

market or market segment.

Competition:

Store 2 Door would enjoy the lack competition; due to only a few online retailers existing in the

market. Store 2 Door will face direct competition from “hutbazar.com” and “giftzhaat.com”.

Therefore direct external competition exists, which have been prevailing in the market for some

time. It is predictable; that forecasted competition profile as we know that when our service-

based company becomes successful other companies will start to bring in future competition.

Higher profit potential would encourage new businesses to enter the market.

Number and

size of Firms

Store 2 Door is an online grocery business; there are similar types of

businesses currently on the rise due to technological developments and lower

costs of maintenance.

Industry size

and Trends

In Bangladesh, online grocery business is a potential market. Therefore.

There is growth in its popularity and the markets are expanding. It is also

highly demanding amongst the urban populace. Hence, Store 2 Door can

exploit the opportunity to tap into this segment of the market.

Product Ranges The range of products for Store 2 Door consists of 2 different lines: - fruits

and vegetables. Although fruits and vegetables are generic in nature,

providing organic perishables are another potential market which never have

been discovered. So there is a large opportunity that competitor might dig in

with wide range of products that consists of four or more variants. Thus,

Store 2 Door needs to be aware of the fact.

Differentiation

Strategies

Store 2 Door needs to put major emphasis on functional benefits of the

advertisement; rather than the monetary benefits. Maintaining good

relationship with the suppliers by giving them little trade discounts or other

incentives to move their products. Store 2 Door will provide substantial

benefits to their suppliers such as giving hand cash, sponsoring shelves, trade

discounts, credits, etc. Thus, future competitors will get little/no scope for

differentiation.

Company Analysis

Objectives:

The main objectives of Store 2 Door are as follows:

We want to distribute fresh quality perishables in the market for the customers to

consume.

We want to deliver a combination of seasonal and off-seasonal fruits and vegetables to

the customers at the best possible quality, without any compromise.

To encourage the use of online retailing so as to develop and enhance both the consumer

and producer market of Bangladesh; therefore bringing about various other benefits and

advantages.

To provide fresh and healthy items to customers and to increase the productivity of the

population as a whole; therefore creating an improved reputation for the business.

Rid the market from harmful chemicals which poses threat to the consumers.

Encourage the intake and cultivation of unprocessed organic agricultural products.

Goals :

Short Term Goal Mid Term Goal Long Term Goal

Introducing online delivery of

organic grocery for the first

time.

Increase the level of current

customer base

Obtain maturity stage and

having the market leader status

Increase profitability Develop the current online store

through customer and market

research. Other amendments

that are necessary would also be

taken into consideration.

Increase company wealth by

diversification and

differentiation

Increasing customer satisfaction

through constant improvements

Set up a personal service

centers that offers flexibility,

Expand newer opportunities

and development in the

management process

value and reliability to our

customers

Cutting down cost so as to

increase profit margin and

indulge in constant

improvement for cost effective

management.

Improving program that

generates increased exposure

and income for Store 2 Door

Lasting legacy

Improving efficiency Looking for foreign exposure

into international market.

Tapping into other markets and

even going public. For

expanded capital accumulation

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

Competitive Advantage:

JIT, Just-in-time inventory control system helping to reduce the moving, storing and

holding cost of inventory. The products would be sold on a daily basis without any

holding of additional stock or inventory; thus reducing the cost to a significant portion.

Low labor cost, Store 2 Door will not require any standard skilled-workforce during the

operation of delivery of the perishables. The business merely requires drivers for the

delivery vans and additional workers to help with the carriage of the stock.

Favorable climate condition, Bangladesh has favorable weather conditions so as to

support the cultivation of a diverse set of fruits and vegetables. At times bumper harvest

can mean a good chance for the business lower cost or attain a high margin profit.

First-mover advantage, only a few businesses have actually started such form of business;

therefore Store 2 Door would gain significant first-mover advantage through its online

based purchase and research system.

Usage of internet technology; therefore faster communication and reduction in the level

of cost.

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.

Target Market Customer of Store to door:

Demographic Segmentation:

The target customer of Store to door company is specified to three categories of social classes of

the society. They are Upper-Upper class, Lower Upper class and Upper-Middle class. This

segmentation id done based on income, location and life style.

The main theme of the company is to provide with chemical free fresh fruits and vegetables with

premium pricing. That’s why it is very important for the company that its customers accept this

strategy. The target customers of the company are the people who are earning 50,000 and above

which follows the three social classes mentioned as the target customer.

The Upper-Upper class is mainly the aristocrats and is blue bloods of the society. This group of

people usually does not go for their grocery shopping by themselves. They rather appoint a

servant for such duties. They mostly care for quality than price. For good quality products, they

are ready to give premium price as well. As this group of people does not go for shopping

themselves, home delivery will be a very convincing idea for them.

The preference level of the Lower-Upper class is quite similar to the upper-upper class of the

society. They also consist of the busy hardworking people of the society, who do not have time

for their weekly grocery shopping by themselves. They also give emphasis on quality rather than

price. So, home delivery of fruits and vegetables will certainly be an acceptable offer for them.

The Upper-Middle class is a bit more deal seeker than the upper-upper and lower-upper class

people. But still they care about the quality. If quality can be assured to them, it is highly likely

that they will be ready to pay a premium price. The people of this social class directly involve

themselves in weekly grocery shopping. They always seek for the best quality while shopping

regardless price. The class consists of the brains and eyes of the society who also leads a busy

life and that’s why always seek for options that can make their life much more relaxed. Keeping

this point in concern the delivery service of Store to door is likely to be acceptable for the social

class.

Geographic segmentation:

As store two door is a new company and will be operating in introduction stage, the areas of

distribution will be much pre-sized. The company has limitations with its budget and

transportation that is why it will be operating only in some specific areas of Dhaka city. The

areas are selected on the basis of the avaibility of the target customers of the company which are

Upper-Upper, Lower-Upper and Upper-Middle class of the society. The people of these social

classes mostly live in the areas like- Gulshan, Banani, Baridhara, Dhanmondi, Uttora and

Baridhara. So, these places are selected as the distribution areas of the company. Also most of

the offices of the multinational companies are situated in these places. So it will be a great

opportunity for implementing the marketing and advertising strategies of store to door company

in these areas. The exposure will be much higher and effective.

Market Analysis

SWOT Analysis:

Strengths

1. Offering relatively new home delivery

service for fruits and vegetables

2. Our fruits and vegetables are chemical

free and fresh

3. Providing quick and convenient service

in order to save customer’s time

4. Online orders and payments

5. A good number of products

Weakness

1. Traffic congestion/parking

2. Limited budget

3. Outstanding loans

4. No or less experience than competitors

5. Competition from already established

competitors

Opportunities

1. Customer demand

2. 2. Affordable price

3. 3.Develop market with existing

products

4. Higher Profit Margin

5. 5. Greater Consumer Response

Threats

1. High probability of increased

government regulations.

2. 2.Strikes and political crimes

3. 3.Environmental disaster

4. 4.NewEntrants

Trend Analysis/ Market Research

Market Research

Question 1:

Gender

MaleFemale

56.66% of the applicants were mostly male, whereas 43.3% were female candidates. Majority of

the research applicants were male, because they usually men in families tend to shop for

groceries. Majority of the male are responsible for the daily, weekly or monthly grocery

shopping.

There are some families were female family members usually take responsibility of the grocery

shopping; however, usually the women shop in departmental stores rather than open market

“bazaars”.

Question 3:

Husband Wife Child Others05

101520253035404550

Who is responsible for the grocery shopping in your family?

The third question suggesting the family member who is in most cases responsible for the

grocery shopping, and around 50% of the families have the husband who does the family grocery

shopping. 26.67% of the candidates have the wives who undertake the grocery shopping in the

family. Only a few numbers of families have the child members who carry out the family

groceries. The remaining members are generally domestic workers serving the families.

In relationship with the first question, the husbands are the usual dominant member in the family.

They undertake the majority of the family purchases.

Question 4:

13%

40%

47%

How frequently do you shop for fruits & vegetables?

EverydayWeeklyTwo or three days a weekMore than three days a week

The fourth question asks the frequency or times of grocery shopping undertaken by families.

Through the chart it can be indicated that almost half of the research applicants shop twice or

thrice weekly. This is the standard purchasing times, depending on the number of average family

members and their standard intake of food and nutrition. Around 40% have answered that they

shop once every week. Surprisingly 13.33% of the applicants have claimed that they shop on a

daily basis; these are considered petty purchases for families. Smaller quantities are purchased

daily. None of the families purchase more than 3 times a week.

Usually in Banani, Gulshan, Bashundhara and Uttara families tend to shop for groceries twice or

thrice a week. Some applicants from Mohmmadpur and Uttara buy groceries on a daily basis.

Therefore it is essential to serve these vicinities; for Store 2 Door these crucial target locations

are essential to consider.

Question 5:

1 2 3 4 and above0

10

20

30

40

50

60

70

How many members are there in your family?

It is important to understand our target market; Store 2 Door’s key consumers are families. The

families with members of numbers 3-4 on an average are among the crucial market segment.

63.33% of the research applicants have family members amounting from 4 members and above.

36.67% of the candidates have a total of 3 members in their family. There were no applicants

with only 1 or 2 members on the overall family.

Store 2 Door only targets families with greater number of family members; higher the

consumption level; hence consistency in the demand can be predicted. Bigger families have

higher food intakes, with greater demand.

Healthy family lifestyle is also important to consider, usually families that fall under the high

income groups tend to be more health conscious. Health conscious people have demand towards

organic perishables or food. They are also able to afford these higher processed commodities.

Question 6:

47%

37%

13%3%

Are you willing to pay a premium price for the higher quality of our

products?Yes, I can payYes, but It has to be reasonableYes, at times but not regu-larNo, I simply cannot afford it

30 families were reviewed for the market survey. For the sixth question the applicants were

asked are they willing to pay the higher price for the improved or superior quality. Almost half of

the survey agreed that they are able to afford for the higher quality unadulterated products;

especially in the case for groceries. Sensitive products such as food or perishables are important;

therefore consumers are willing to pay the additional price. 37% of the candidates have replied

that prices must be within a reasonable range for consumption to be affordable.

Only 3% of the survey have claimed that they simply cannot afford the higher prices, 13% have

claimed that premium prices can only be paid occasionally and not on a regular basis.

Store 2 Door only targets these consumers who are able to pay the premium price. Moreover,

these products are delivered straight to their doorsteps. Therefore additional services are also

included within the charge.

Question 7:

Home Delivery Retail Store Others0

10

20

30

40

50

60

Which to you is the most preferable form of purchase?

The seventh question asks the research candidates which form of purchase is mostly preferred.

Majority from the survey have actually chosen home delivery over the other options. 60% of the

survey has agreed to the concept of home delivery, this mostly due to the premium price charged.

Consumers prefer the product to be delivered to their home, with the increasing number of traffic

congestion on the roads and excess pollution.

30% have agreed to the retail stores as being a traditional mode of purchase and cannot be easily

substituted. Although they may have chosen retail stores, they are in full support of hoe delivery

services.

Consumers have demanded the use of home delivery over other modes due to the premium price;

Moreover, it is the business concept for Store 2 Door. Combination of Online ordering and

delivery services is the way the business operates.

The logistics have been chosen carefully by the business, so that the delivery process can be less

time consuming and faster.

Question 8:

22%

21%

19%

17%

9%

3%5%

5%

What are the attributes you look in to while purchasing fruit and veg-

etables?HygieneFreshnessPriceQualitySeasonal AvailabilityTasteColor (Ripe/Raw)Vicinity or Origin

The eight questions ask the research candidates the attributes which they mostly prefer in fruits

and vegetables. There were a total of 8 checklist options, majority of the customers have

answered Hygiene as the crucial component whilst the purchase of such products; following

Freshness and Price.

This is predictable, because perishables are considered sensitive products and have influence

over the human health. Customers show greater emphasis and importance towards these

attributes.

Other factors such as Seasonal Availability, Taste, Color and Vicinity are among the other

attributes considered but rarely are they mandatory or crucial for making purchasing decisions.

Question 10:

7%7%

17%

53%

17%

Are you currently satisfied with the quality of fruits & vegetables sold in the bazaar and

department store?Yes, I am fully satisfiedYes , but there are small doubtsNeutralNo, but there are no other options to purchaseNo, there are all contaminated and I have reduced my consumption

The tenth question asks the customers whether they are currently satisfied with the quality of

products available in the market. This is a question has a very predictable outcome as 53% of the

survey candidates claiming they are dissatisfied and that with no other alternative, consumers are

forced to but from the local shops.

Only 7% for the survey have agreed to be satisfied with the current quality in the market, but

majority have claimed for the low quality of products prevailing in the market. Due to the excess

number of adulterated chemicals used by distributors for profits, the market is full of unhygienic

products which re harmful to human health.

Quality is compromised with the use of such harmful chemicals. However, Store 2 Door will

provide organic products to its customers. Organic products are unprocessed therefore they are

much rare and have a higher demand. Consumers demand qualitative products and for which

they are willing to pay a premium price.

Question 11:

87%

10%

3%

Are you in favor of organic food (fruits & vegetables)?

Yes, I am completely pleasedYes, but some amount of fertilizers requiredNo, there needs to be proper cul-tivation through fertilizers and other methods

There are various controversies surrounding organic and non-organic products, where in some

cases people believe that food requires some form of processing to aid in cultivation. Through

the use of chemical fertilizers most of the fruits and vegetables are sold in the market, at times

harmful chemicals are used to adulterate these perishables; therefore destroying its very integrity.

Most of the research candidates have actually favored organic products; this is part of the market

research. Only a minor 10% of the customers have no problem or issues with some portions of

chemical fertilizers to be used. Surprisingly around 3% of the survey candidates have shown

disagreement towards organic products, as they believe that chemicals and fertilizers are

necessary for growing agricultural products.

From the survey it is eminent that majority of the customers support the use of organic and

natural products; rather than the use of chemicals to cultivate.

Question 12:

Providing qualitative supply of seasonal local fruits & vegetables

Providing fresh supply of off-season local fruits & vegetables

Providing quality unique foreign fruits & vegetables

0 10 20 30 40 50 60 70 80

What do you expect from our product line?

The last question form the survey asks the candidates what do they expect from the business

product line, it is essential to note that majority of the customers have demanded towards local

and seasonal products. Close to 80% of the customers prefer the local fruits and vegetables to be

made available to them.

23.33% of the survey candidates have shown interest towards off-seasonal fruits and vegetables,

this is only a minor portion of the survey demand. Although Store 2 Door does not emphasize in

providing off-seasonal fruits and vegetables due to the capital shortages; the current capital

standings is not enough to finance for freezers and containers to store perishables for off-

seasonal demand.

Only 3.34% of the survey has demanded for unique or foreign fruits and vegetables, currently

Store 2 Door is not serving such segments, but future investments can bring other developments

and room for product line extensions.

Marketing Mix

Product:

Our products are fresh and chemical free fruits and vegetables that are directly collected from farmers.

Day by day people are becoming more interested about their food items and where it is growing up?

Preferring organic vegetables will definitely reduce the intake of chemicals. But despite that the

homemakers will need to wash them thoroughly to eat clean. Organic vegetables don't mean clean

vegetables so washing them should be a routine task. People often mistake while buying vegetables in

organic marts. They think the organic tag or label on the foods mean that they are totally free from

contamination which is not true. We provide all kinds of seasonal fruits and vegetables that you are really

want to buy. Our fruits and vegetables include:

There are lots of retail stores of green vegetables and fruits in the market but not any single store is

delivering hundred percent fresh and organic vegetables. So far we know, in case of chemical free or

organic fruits and vegetables we are the market leader at this moment. Organic foods are foods that are

produced using methods that do not involve modern synthetic inputs such as synthetic pesticides and

chemical fertilizers. Organic foods are not processed using irradiation, industrial solvents, or chemical

food additives. Now-a-days people are more conscious about their health. So they are no longer stay with

poisoned vegetables that are really harmful for their health. Veggies are so beautiful and span the colors

of the rainbow. These vibrant colors indicate they're chock full of photochemical, those disease-

preventing chemicals found in all plant foods. The varying colors signify varying nutrients which is why

it's important to include all the colors of the vegetable rainbow to cover the innumerable health benefits

veggies bring to the table. Consumers interested in organic food would look for non-chemically treated,

non-use of unapproved pesticides, fresh or minimally processed food. They mostly had to buy directly

from grower. Scientific literatures have not found that organic food is any safer or healthier than

conventional foods. There continues to be widespread public belief in arguments that organic food is

significantly safer for consumption than food grown conventionally, based mainly on anecdotal evidence

and testimonials rather than scientific evidence; this belief has fueled increased demand for organic food

despite higher prices. So, high price in case of organic fruits and vegetables is not a big deal to the today’s

consumers.

Place:

Distribution is one of the classic “4 Ps” of marketing. It’s a key element in the entire marketing strategy,

it helps to expand reach and grow revenue. Actually it is a path through which goods and services flow in

one direction (from vendor to the consumer), and the payments generated by them that flow in the

opposite direction. A distribution channel can be as short as being direct from the vendor to the consumer

or may include several interconnected intermediaries such as wholesalers, distributors, agents, retailers.

Each intermediary receives the item at one pricing point and moves it to the next higher pricing point

until it reaches the final buyer.

We are “Store to Door’ a solid home delivery service. Our distribution channel is 2, means we collect all

of our vegetables from farmers directly and deliver it to the final consumer. Our main collection point is

“Gazipur Chaurasta” a well known and reputed vegetables market in Bangladesh. Considered to our

demand we collect vegetables every day morning from here. To bring our vegetables and supply it to the

customers we use two pick up ban which go to the Gazipur around 7.00am and come back with

vegetables within 10.00am. After 10.00am we start our main distribution to the ultimate consumer at our

selected area in Dhaka city. Our selected areas are Gulshan, Baridhara-Bashundhara, Uttara, Banani,

Dhanmondi and Lalmatia.For Uttara, Baridhara and Gulshan we have one ban and for rest of the areas

one ban. We provide our service up to 6.00pm. To provide a good service and create an effective

distribution channel we offer different types of order process like if our customers want to post their order

over the phone then we just make a product list and deliver the product in the next day morning. Besides,

if our customers want to make the order via mail it is also possible. Our head office is located in Middle

Badda, so customers can make their order by physically come to our office.

We have no other intermediaries in the whole process. Our distribution channel is also very

flexible. If there is not an effective distribution channel then good products have no meaning

actually. Therefore, the success of each and every service type business is completely depending

on the proper distribution channel.

Price:

Vegetables

Sl Name Price1 Basil 132 Brinjal 253 Carrot 604 Cucumber 305 Lemon 156 Gourd 28

7 Lady’s finger 388 Potato 359 Pumpkin 2810 Red amaranth (per bundle) 0611 Snake gourd 3512 Patol 331314

Balsam appleTomato

4355

Fruits

Sl Name Price 1 Mango 120

2 Apple 1383 Orange 1354 Blackberry 1055 Guava 556 Jack fruit 1207 Litchi 2258 Wood apple 559 Date 150

10 Grape 22511 Papaw 5512 Banana( per dozen) 60

Promotion:

MARKETING GOAL

The goal of a Store 2 Door’s promotional efforts is to communicate with target markets. There

are four major tools available for developing promotional mix: Advertising, Personal Selling,

Public Relations, and Sales Promotions.

But among these four, Store 2 Door is going focus mainly on Advertising and Sales Promotions.

Our marketing goal for the launching campaign of Store 2 Door in Bangladesh is to create strong

brand awareness and Brand equity to our potential customers as well as to our targeted customers

through different communication tools. For the brand Store 2 Door target markets being exposed

to a new brand is an important step for the product life cycle. It is actually the first step because

only after brand awareness consumers can have aided brand recall, unaided brand recall, brand

recognition, and then finally, after people become repeat users, brand loyalty. Building a rock

solid brand is perhaps the best long term marketing strategy. We want to create awareness of the

Store 2 Door brand through different advertising and promotional methods.

Through the marketing campaign we want to create customers emotional attachment to the Store

2 Door Company and its products. Branding efforts create a feeling of involvement, a sense of

higher quality and creates a soft corner in our consumers mind that will make them believe that

they are having pure and preservative free fruits and vegetables that surround the brand name,

mark, or symbol. Our primary goal is that after the campaign people will recognize the Store 2

Door brand. This does not necessarily mean they prefer the brand (brand preference), attach a

high value to, or associate any superior attributes to the brand, it just means they recognize Store

2 Door brand and can identify it under different conditions. We will use different advertising

tools like print advertising, electronic advertising, online advertising etc to build brand

awareness.

Now we’ll be going through the tools of promotional mix on which Store 2 Door is mainly going

to focus and those are; Advertising and Sales Promotions.

Advertising

Store 2 Door will be using Advertising as a way to bring attention to your product or business by

publishing or broadcasting a message to the public through various media. Our choices of media

include the following:

• Print media: Newspapers, Magazines, Direct mail

• Broadcast media: Radio, Television, or Computer billboards

• Outdoor media: Billboards or posters placed on public and other transportation

Store 2 Door would be using these media vehicles focusing on the choice of our target customer.

As we are offering our customers Fresh and natural fruits and vegetables we would try to use lots

of colors in our advertisements as sign of purity and would try to show daily life scenarios which

will include problems of contaminated foods. As cost of your advertising is another important

factor in choosing media vehicles and at the very beginning we would try to create consumer

awareness Store 2 Door would use Print media as its media vehicle.

Let’s take a closer look to our options of media vehicles:-

Newspaper

The advantages of using Newspaper as print vehicle is that it is flexible; timely; covers local markets well; believable (because people read newspapers to get information) and it is very important for us to make our customers believe on us as we are offering preservative and chemical free fruits and vegetables. It is relatively inexpensive; we can use color, coupons,

or inserts.

Our first campaign through newspaper would be an insert what would be like an extra page that would look like a greeting card. On that it would be written that “From now on you would be chemical free and don’t have to go to market for buying your Fresh and Chemical free fruits and vegetables. We’ll be bringing those to your doorstep.” The limitations that this media vehicle would face is Short life of ad; number of ads per newspaper causes clutter; poor photo reproduction and low pass-along value which means that newspapers are rarely read by more than one person.

Direct mail, social media, and Web technology

Advantages of Direct mail, social media, and Web technology as media vehicle is that it can be

targeted very specifically; message can be personalized; less space limitations than other media.

Its limitations are, these mails are perceived as “junk mail”; high relative cost; mailing lists are

expensive and often inaccurate.

Store 2 Door will transform direct mail advertising by enabling businesses to track their mailings

and create a customer database in the process. It works like this. Our company sends out a direct

mail piece to our customer base offering them a coupon for a free product. Each piece of direct

mail has a PURL, a personal URL for that specific customer. Once the customer receives the

direct mailing, in order to receive the coupon for the freebie, the customer must log on to their

PURL in order to print the coupon and they also have to endorse five of his or her family

members and provide their Email address. Before they can print the coupon, they are asked for

more information, like e-mail address.

BUDGET

For face book user we purchase 15 thousand impressions daily. We segmented our targeted our

customer very specifically so that actual customer could about us. In face book each impression

cost is 0.39 taka and this impression will be in the face book from December 1st till January 31st.

Here the cost is 15000*.39*6o = 351,000

Newspaper budget:

Newspaper name Per A4 size paper

print cost

No of prints of leaflets Cost per day

Prothom Alo

newspaper

BDT 4.00 10000 40000

Daily star BDT 4.00 8000 32000

(72,000*4)+ (72,000*3) + (72,000*2) + (72,000*9) = 1,296,000

Distribution of leaflets would be 4 times in the first month, 3 times on the second month and 2

times on the third month. After the third month onwards we will be providing leaflets once in

every month.

Website expense- we have to provide 7000 BDT to buy our own domain and have to pay 2000

BDT as the cost of developing our website. That means we will be paying 9000 BDT as website

cost in the first year. After the ending of first year we have to pay 3000 BDT as a yearly domain

rent.

Business Model

Store 2 Door is a common platform where the distributors, retailers and wholesalers can supply

to the needs of the household customers. Store 2 Door enables a greater market reach to the

suppliers and convenience to the customers. It provides an 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.

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.

Customers would directly interact with the business through the official web portal; choose their

necessary items desired. Using credit card, debit card, cheques and cash customers would be able

to purchase from the Store 2 Door online portal. Delivery vans would circulate through the

destined locations and delivery to the consumer’s residence. Store 2 Door will primarily focus in

providing a central hub for customers to purchase directly from the website, the business will act

as a liaison and the hub between wholesalers and customers.

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.

Currently creating a hub for wholesalers between retailers may be difficult due to the existence

of experienced and known middle-men; therefore it would ineffective to enter the market at this

state. Intervention into the supply side is not the primary focus.

Business Process

The business process for the Store 2 Door is very simple. The Process can be segregated into the

following sub categories:-

1. Buying Process

2. Selling Process

Buying Process

This process allows users to search and buy different products listed by sellers

Registration

To buy on Store 2 Door one must be a registered user. It's fast, easy and free. As a registered

user, they can shop and place orders on Store 2 Door. Through registration the customer is

considered a virtual subscriber to the business; hence they will be able to avail all the benefits

from the website.

The registration involves the following steps:

1. Contact Information

2. User ID & Password Creation

3. Email Confirmation

Browse

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

interested in. The customers would be browsing through all the perishables that are currently

available. In most cases seasonal products would be made available, but in the future as the

business progresses more rare and off-seasonal perishables would be in stock. As the business

invests further in the capital equipment such as freezers and containers, the product lines can be

extended.

Select

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

decision, paying attention to the:

Listing information

Product details

Shipping and payment details

Seller information

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

Credit & Debit Cards

Feedback

Feedback is made up of comments and ratings left by members who have bought from and sold

to. Once customers have received their items, they can 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

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.

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

Enlist Products

The supplier must enlist their products with appropriate details, pictures, description, prices etc.

Each product enlistment requires an onetime cost.

Manage Products

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

Feedbacks & Remarks

The feedbacks from supplier are taken to improve the process.

Revenue Model

The revenue model of Store 2 Door is very simple. Store 2 Door 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 Store 2 Door. 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 – Store 2 Door charges a nominal amount for shipment of products to the door

step. This depends on the distance and amount gradation.

Maintenance – Store 2 Door also charges a percentage of the order for maintenance of its

business.

Discounts – Store 2 Door offers discounts to all of its deals depending on the time and

volume of orders.

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.

How we manage 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 “Just-in-time” approach of inventory control.

Just-in-time:

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

reduce shipping and setup costs. These supplies are immediately delivered and sold to the

subscribers or consumers. Little or no inventory are stored, with current capital restrictions it is

hard to afford large warehouse and freezers; therefore products are timely sold to consumers.

The logistics of Store 2 Door has been clearly thought out and planned. The delivery vans

circulate through the planned locations while making determined delivery to the households.

Daily inventory are sold out as we are familiar with the number of quantities demanded by the

customers through their orders. This portion of our inventory depletes gradually as customers’

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

Marketing Strategy

Store 2 Door is first of its kind in Bangladesh. 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. Store 2 Door 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.

Unmet Customer Needs

We have identified the following pain points in the industry that Store 2 Door 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.

Our Offerings

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

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

Offerings to Customers

Our offerings to the customers are:

1. Convenience

2. Timely delivery

3. Cheapest Deals

4. Quality Assurance

5. Value for money

Sweet spot

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.

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.

Management, organizational structure & HRM

The organization structure is going to be following the “top–to-bottom” structure, maintaining a

strict hierarchy setting. So as to make sure that the decision making process and flow of control

remains at the strategic level. The company is going to be designed as such that the flow of

control and management is very clear, sound and such that the individual level of authority is

visible and accountable for. The level of authority is going be very noticeable so that everyone

knows their distinctive job and command in their individual field or duty.

Every level of authority is going to have its own set of duties over their specific departments;

while answering to the top management; thus responsibility for failure or success is clearly

visible.

At the top, the four shareholders or owners are going to represent the company as their directors.

Amongst the four directors, there will be an elected managing director in accordance to major

shareholding or by anonymous voting system. The managing director will act as the head of the

company to whom all the inferior levels of management are going to report to.

Higher management will have the power to choose which ones are possible and which ones are

not possible to be bought and supplied at the right quality and time given the technological and

chemical existing advancements. Here again the finance department do their work and show

which ones are feasible.

Meanwhile, the market research team would analyze the market to determine possible sales

potential and market opportunity; in order to achieve the goals of the business at a more

profitable manner. Next is up to the sales and marketing team to push the sales and image of the

company to its intended target. Although our business marketing push would be mild, but

effective.

This process hereby takes on repeatedly and in various combinations so as to achieve an

effective internal management system which performs flawlessly. This management system

would work hand in hand with the goals and objectives of the business itself. Thus the

organization chart is designed in such manner so as to obtain the best possible outcome which

can be achieved.

Staffing-

Planning

Planning the number of staff which would be required for the business in order to operate and

function properly. An optimum level of personnel may be utilizes, exceeding that umber may

cause control and monitoring issues; and rising costs.

Implementing 

Each department will work to implement plans for example

 

Finance- work to accumulate necessary financial resources through bank loans and other

modes.

Marketing- develop STP plans, Value proposition, branding and promotions and research

and development

Operation & IT- Organize business processes such as purchase, inventory management,

delivery process, Decide on the required Information technology needed and establish it

for the business.

Human Resource- Design recruitment plans, Organization code of conduct, compensation

and benefits plans, training and motivation plans amongst others

Controlling and Monitoring- Once the business is in operation each department have to

work diligently to control and reduce wastage, secure inventory and deliver superior

customer service

Controlling

Monitoring Initially the business is going to be operated with 4 functional divisions of Finance,

Marketing, Operation & IT and HR. Experts and highly experienced professionals will be

recruited to head each department and they will be asked to form a small team of 2-4 people in

each department who are going to form a steering committee that will facilitate the startup phase

of the business. This steering committee will undertake the above mentioned functions and

organize the business so that it can open up within 6 months of the formation of the committee.

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

our customers can take advantage of the same.

Financial Analysis

Pro Forma Income Statement for the year ended 31 December 2013, 2014,2015 Details: 2013 2014 2015

Revenue:

Sales 3,054,744

7,636,860

8,400,546

Total Revenue 3,054,744

3,360,218

4,200,273

Expenses:

Salaries and allowance 600,000

600,000

600,000

Office Rent 153,000

144,000

144,000

Promotion :

Newspaper 1,296,000

864,000

864,000

Website & Domain Rent 9,000

3,000

3,000

Online Promotion 351,000 351,000 351,000

Delivery Expense( CNG fuel) 276,000

276,000

276,000

Loan Repayment - 100,000

200,000

Internet expenses 24,000

24,000

24,000

Telephone and Mobile Bill 28,000

30,800

38,500

Utility Bill(Electriciy, water) 18,000

19,800

24,750

Repair and Maintenance 20,000

22,000

27,500

Company Registration fees 11,300

- -

Interest on loan 300,000

280,000

260,000

Depreciation expense 80,000

80,000

80,000

Total Expenses 3,166,300

2,794,600

2,892,750

Net Income (111,556)

565,618

1,307,523

Pro Forma Cash Flow Statement for the years ended 31 December 2013, 2014,2015

Details: 2013 2014 2015CASH FLOW FROM OPERATING ACTIVITIESNet Income

(111,556) 565,618

1,307,523 Adjustments to reconcile net income to net cash provided by operating activities:Depreciation

80,000 80,000

80,000 Cash proceeds from accounts receivable

(232,942) (23,294)

(96,089)Cash proceeds from prepaid expense

(100,000) 50,000

50,000

Cash proceeds from accounts payable 33,500

3,350 13,819

Cash proceeds from Interest payable 20,833

(833) (1,667)

Net cash flow from operating activities (310,165)

674,841 1,353,586

CASH FLOW FROM FINANCING ACTIVITIESCash proceeds from bank loan

3,000,000 - -

Net cash flow from financing activities 3,000,000

(100,000) (200,000)

CASH FLOWS FROM INVESTING ACTIVITIESPurchase of Machinery & equipment (1,400,00

0) - -

Purchase of Furniture & fixtures (200,000)

- -

Purchase of Office Equipment (80,000)

- -

Net cash flow from investing activities (1,680,000)

- -

Net Cash Flows 1,009,835

574,841 1,153,586

Cash, January 1 -

50,891 60,994

Cash, January 31 1,009,835

625,732 1,214,580

Pro Forma Balance Sheet as at 31 December 2013, 2014,2015Details: 2013 % of sales 2014 % of sales 2015Application of FundsFixed AssetsDelivery Van (700,000x2)

1,400,000

1,400,000

1,400,000

less: Accumulated depreciation

(80,000)

(80,000)

(80,000)

1,320,000

1,320,000

1,320,000

Furniture & fixtures 200,000

200,000

200,000

less: Accumulated depreciation

(10,000)

(10,000)

(10,000)

190,000

190,000

190,000

Office Equipment 80,000

80,000

80,000

Total Fixed Assets   1,590,000

  1,590,000   1,590,000

Current AssetsCash in hand

1,009,835 625,732

1,214,580

Cash at bank 121,556

534,882

10,032

Accounts receivable 232,942

0

256,236

0 352,325

Prepaid expenses 100,000

50,000

-

Total Current Assets

1,464,333

1,466,850 1,576,937

Current LiabilitiesAccounts payable 33,5

00 0

36,850

0 50,669

Interest payable 20,833

20,000

18,333

Total Current Liabilities

54,333

56,850 69,002

Net Working Capital 1,410,000

1,410,000 1,507,935

Total Assets   3,000,000

  3,000,000   3,097,935

Sources of Fund

Long-term LiabilityBank loans

3,000,000 3,000,000

3,000,000

Retained Earnings -

- 97,935

Total Sources of Funds

3,000,000

3,000,000

3,000,000

3,000,000 3,097,935 3,097,935

Break-even Analysis2013 2014 2015

Fixed CostDelivery Van 1,400,00

0 1,400,00

0 14,000,000

Furniture & fixtures 200,000

200,000

200,000

Office Equipment 80,000

80,000

80,000

Office Rent 153,000

144,000

144,000

Company Registration fees 11,300

-

Loan Repayment -

100,000

200,000

Interest on loan 260,000

300,000 280,000 Depreciation

80,000 80,000

80,000

Total Fixed Cost 2,224,300

2,284,000

14,964,000

Variable Cost Salaries and allowance

600,000 600,000

600000

Publicity and Advertisement 67,800

94,580

138225

Delivery Expense 276,000

276,000

276,000

Telephone and Mobile Bill 28,000

30,800

38500

Utility Bill(Electriciy, gas, water) 18,000

16,800

15,600

Repair and Maintenance 20,000

18,667

17,333

Total Variable Cost 1,009,800

1,036,847

1,085,658

Units Sold 2500 2500 2500

Sales 3,054,744

7,636,860

8,400,546

Sales per unit 1,221.90

3,054.74

3,360.22

Variable Cost per unit 403.92

414.74

434.26

2013 2014 2015 Break-even point in units sold

2,719

865 5,114

2013 2014 2015 -

1,000

2,000

3,000

4,000

5,000

6,000

Break-even point in units sold

Break-even point in units sold

Ratio Analysis

  2013 2014 2015 Formulas

Current Ratio26.9 25.8 22.9

Debt Ratio1.2 1.02 0.991  

Times Interest Earned -0.37 2.02 5.02  

Total Asset Turnover 1.02 2.54 2.71

Fixed Asset Turnover 1.92 2.54 2.71

Days sales outstanding

28 12 15

Net profit margin -0.037 0.074 0.156

Return on asset-0.04 0.19 0.422

1 2 3202122232425262728

Current Ratio

Current Ratio

1 2 30

0.20.40.60.8

11.21.4

Debt Ratio

Debt Ratio

1 2 3-1

0

1

2

3

4

5

6

Times Interest Earned

Times Interest Earned

1 2 30

0.5

1

1.5

2

2.5

3

Total Asset Turnover

Total Asset Turnover

1 2 30

0.5

1

1.5

2

2.5

3

Fixed Asset Turnover

Fixed Asset Turnover

1 2 30

5

10

15

20

25

30

Days sales outstanding

Days sales outstanding

1 2 3

-0.05

0

0.05

0.1

0.15

0.2

Net profit margin

Net profit margin

1 2 3-0.1

0

0.1

0.2

0.3

0.4

0.5

Return on asset

Return on asset