A Team Project On

‘’Online Pet Shop’’

2

Letter of submission

Date: 1, December, 2014

A B C

Course Instructor,

School of Business

……………..

……………….

Subject: Permitting to submit a report

Dear Sir,

This is our pleasure to submit our report on “Online Pet Shop” which was assigned. It was a great opportunity for us to acquire knowledge and experience. Now we need to take

permission from you to submit our report.

In these circumstances, we therefore request you; to give us permission to submit our report.

We will always be ready to provide any further clarification that you may require.

Sincerely Yours,

XYZ

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Acknowledgement

We are using this opportunity to express our gratitude to everyone who supported us throughout the course of this project. We are thankful for their aspiring guidance and friendly

advice during the project work. Specially thanks to our course instructor.

We express our warm thanks to our parents, friends and all group members for supporting us.

Thank You.

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Contents

Topic title Page Number

1. Executive Summary 5

2.Company Summary 5

3. Products and Services 8

4. Market Analysis Summary 10

5. Strategy and Implementation Summary

13

6. Management Summary 18

7. Financial Plan 20

8.Conclusion 24

9.References 24

5

Executive Summary:

Today’s pet industry is increasing very well. Pet market has been a very popular market for the

past many years. Our current business plan is online pet shop. This includes different pet dogs,

birds, rabbits and also foods of the pet animals. We will sell our products online as our business

is online. It is basically very new idea in Bangladesh and it is a very demandable business as

everything in now a days has become computerized

Our mission is to provide high quality of pet animals and pet foods at the best price possible for

the customers. In order to full fill our mission statement, we need to provide good and quality

products to our customers and we are very keen to do that.

Our marketing plan is completely different from other pet shops, because we are introducing

an online pet shop in Bangladesh, so our marketing strategy will be virtualized. So it is such a

new idea in Bangladesh and we are very hopeful that our business will make a good profit as

well as we are very concern about our reputation. We will try to fulfill the needs of our

customers in a least time. As it is a very new idea in Bangladesh, it will take little time to

become a very popular business section in our country, but we will try our best to satisfy our

customers.

With an emphasis on customer service nabanna.com will differentiate itself from others by

establishing a welcoming friendly atmosphere for the consumers in our target market. We can't

just sell our products; we must deliver those products with a focus on excellence. We have to

satisfy our customers by our service in order to become successful and our home delivery

system has to be very sharp.

Company Summary:

Profile

1. Brand Name : nabanna.com

2. Year of Establishment : 2014

3. Type of Business : Online Service Business

4. Products : Pet Birds, Small Animals and their foods, toys, nest etc.

We imported those products from local and foreign

market.

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5. Number of Staff : 20

6. Address (office) : 2nd floor, House#206, Lane#2, Baridhara, Dhaka-1206

Bangladesh

7. Contact Person : Mr. Mamun Ahmed, Manager

8. Consulting Group : Dr. Samia Jaman, Medical Officer & Sadik Khan

9. Email : info@nabanna.com

10. Website : www.nabanna.com

11. Facebook Page : facebook.com/nabanna

12. Geographical Preferences : Dhaka (Bangladesh)

Ownership

Mr. Ananta Ali and Mr. Sakib Hossain are the co-owners of nabanna.com

Facilities

We are passionate and committed to offering good products that enrich the pet ownership

experience. Our focus is providing quality pet birds, small animals and encourages interaction

and enhances the bond between owners and their pets. Designing products for health, security

and the comfort of your pet is our top priority. Other facilities-

- Customer doesn’t need to go any pet shop physically.

- Medical team is careful enough to care customers’ pet.

- Our huge collection gives our customer ample opportunity of choice.

7

Start-up Plan

The start-up costs of nabanna.com consist of product inventory, creating a promotion campaign and establishing its website. nabanna.com is funding start up with owner investments and a long-term business loan.

Start-up Expenses:

Legal ৳20,000

Stationery etc. ৳50,000

Website Development ৳10,000

Insurance ৳20,000

Rent ৳25,000

Marketing ৳70,000

Equipments ৳30,000

Other ৳20,000

Total Start-up Expenses ৳2, 45,000

Start-up Assets:

Cash Required ৳1,00,000

Start-up Inventory ৳1,20,000

Other Current Assets

৳50,000

Long-term Assets ৳80,000

Total Assets ৳3,50,000

Total Requirements = ৳5,95,000

8

Products and Services:

nabanna.com is not only product based, but also a ornate service based business. We are

dedicated to satisfy our customer with home delivery service of his/her favorite pet like –

different types of birds, cats, rabbits, fishes, dogs etc.

Understanding customer’s comfort we are ready also with delivering pets’ renowned brand

food and accessories. Our pet care team is always dedicated and careful to provide primary

treatment of customers’ pets.

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Our Products:

Pets – a) Birds b) Cats c) Dogs d) Rabbits e) Fishes

Pets’ Food

Pets’ Accessories

Our Services:

Home delivery in Dhaka

Primary treatments of pets

Competitive Advantages:

nabanna.com is the first in Bangladesh to provide online pet shop and primary treatment

service. Our competitors are mainly local pet shops. We are one step ahead than our

competitors with these unique advantages:

Our customer don’t need to go any pet shop physically

Our online services save customers’ time

Also comfortable for customers

Our pet care team is careful enough to care customers’ pet

Our huge collection give our customer ample opportunity of choice

save times of customers

comfortable for customers

home delivery within 24 hours

ample opportunity of choice from

huge pet collection

after sell primary treatment service within short span

of time

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Supply of Pets:

We manage profitable business deal with different suppliers and producers to have interrupted

supply of pets, foods and accessories. We follow very fair policy to maintain business

relationship with our suppliers and producers.

Our product collection team collects quality products not only from farms, but also from

domestic pet producers to encourage domestic pet cultivation culture.

Upcoming Products and Services:

To extend our business we want to launch our own pet food brand in near future. We also want

to extend our primary treatment service to specialized treatment service.

Market Analysis:

nabanna.com’s marketer team is aware with its current customer market, potential market,

market segmentation, market needs, what trends going on in market, what about the pet shop

industry and competitors, market growth and strategy to develop service and lead the pet shop

industry.

Segmentation

In segmentation the whole market is segmented into various target groups. We think that

demographic and geographic segmentation is more effective for us.

Initially our target is Dhaka metropolitan area.

Our customers of birds are mainly college students (15 to 20 years), especially girls.

Teen girls are mainly customer of cats.

Young men (22 to 30 years) especially like dogs.

Kids (5 to 15 years) are especially fond of rabbits.

Home makers especially like to decorate house with fish aquarium.

We try to segment our market according to market trends and market needs.

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Pet Shop Industry

Regular Pet Shop of ‘Katabon’

In Dhaka pet shop industry are mainly ‘Katabon’ area based. Also there are few pet shops in

few residential areas. Here the main problem for customer is –

Price of pets in residential area based stores is very high.

On the other hand, to buy pet to go to ‘Katabon’ is a waste of time and many customers

lose their attention for this.

Our online service with home delivery service can eliminate the two main problem of pet shop

industry and can lead the industry with a plain growth possibility.

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Webpage of nabanna.com

Customer’s online order taking and delivering desired pet within short time eliminating

customer’s unnecessary waste of time and money, makes nabanna.com a unique pet shop in

the current pet shop industry of Dhaka, also the first online pet shop in Bangladesh.

nabanna.com is the first to provide online pet shop service

Customer friendly with customer’s time and money consuming policy

These are the reasons we are one step ahead than other pet shops and the causes behind of

getting customer’s preference to nabanna.com.

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Strategy and Implementation Summary

Strategy Pyramids

Vision

Our main and first vission is the spread our bussines all over the country.

Mission

Our mission is to provide high quality of pet animals and pet foods at the best price possible for

the customers. In order to full fill our mission statement, we need to provide good and quality

products to our customers and we are very keen to do that.

Goals

Pet business is increased in our country day by day. For some advantages we believe the

business will be successful by injecting a new taste in the society.

Strategy

Service is the main tag of nabanna.com. Some strategy which will be provide by nabanna.com-

• save times of customers

• comfortable for customers

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• home delivery within 24 hours

• after sell primary treatment service within short span of time

Key Tactics

nabanna.com will differentiate itself from others by establishing a welcoming friendly

atmosphere for the consumers in our target market. We can't just sell our products; we must

deliver those products with a focus on excellence. The key tactics used for our success will be

composed of themed environments, staff training, customer satisfaction, marketing and the

equipment.

Value Proposition

We want to make a first impression at first chance to our customer. We are ready and skilled

enough to make true ‘we care of your pet’! Our online order taking IT team, home delivery

team, pet physician team, marketing team and overall management team are dedicated to

fulfill customer’s satisfaction through our unique service to the customer.

Competitive Edge

There is no competition from an organization around the Dhaka city as there is no other online

pet shop. We are the only competitor in the market. In the meantime nabanna.com becomes a

brand. Our home delivery and medical consultant system will help us ensure the early adopters

and gradually the potential target groups. We are hopeful that we will be the leader at this

segment.

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Marketing Strategy:

Our marketing strategy is very customer friendly. We are to follow ‘less price, more sell, more

profit’ policy as our strategy. Our marketing activities will be a reflection of our customer

friendly pricing, promotion and unique service.

Positioning: ‘we care of your pet’ – this positioning statement we want to make true.

Pricing: Initially we will collect our pets directly from farms, and in future we will grow

our own farm to have a supply at cheapest cost. This is how we will ensure customer

friendly price.

Promotion: Initially we will promote through Dhaka based different magazines,

newspapers, local TV channels, billboards, handouts, handbills, participating different

pet related carnivals, events etc.

Distribution Patterns

It is a service oriented business and our products are pet Birds, small Animals and their foods,

toys, nest etc. We imported those products from local and foreign markets. We have to satisfy

our customers by our service in order to become successful and our home delivery system has

to be very sharp. So, customers are served directly from the nabanna.com without any

intermediaries.

Marketing Programs

Various types of marketing program will be undertaken for our promotion. Through these

programs will try to reach our customer effectively. We will make sure our existence

throughout these programs:

Organizing pet fair

Organizing competition of pets

Organizing workshop on best care of pet

Arranging awareness program to make people aware about pet and animals

Advertisements – TV, Radio, Billboards, Print Media etc.

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Discount coupons

Grand opening ceremony

Sales Strategy

Our sales strategy will be

-annual membership for single person

-annual membership for mass group

-launching T-shirts, caps, mugs, toys, watches,

-sell spots for advertisements

-offering to do business along with us

-LCD Advertisement

Sales Forecast

Our sales forecast is the backbone of our business. Everyone measure a business and its growth

by sales and their sales forecast sets the standard for expenses, profits and growth.

nabanna.com’s sales forecast in a business plan should show sales by month for the next 12

months at least and then by year for the following five years.

Year Revenue

2014 190000

2015 210000

2016 320000

2017 400000

2018 510000

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Sales Programs

We will be giving different types of discount to our customers and for our loyal customers there

will be membership programs. Depending on their buying behavior there will be a few options

to choose the membership pattern for themselves and our huge collection gives them ample

opportunity of choice.

Strategic Alliances

We will maintain profitable strategic alliances with some international pet dealers to import

exclusive pets on demand of customer. Also, we will maintain a good relation with our

Government’s Animal Department to have the very fast update of rules and regulation. We are

also keen to maintain the best partnership with specialized pet hospital.

Milestones

We will gain our milestone by serving the customers with the best home delivery service. As it

will be a completely new experience in pet industry for the people in Bangladesh so we can

have some advantage. Customer’s online order taking and delivering des ired pet within short

time eliminating customer’s unnecessary waste of time and money, makes nabanna.com a

unique pet shop.

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Management Summary:

Our organizational structure-

Management Team

a) Manager: Mr. Mamun Ahmed, 2 years working experience on a non-profit organization.

b) Sales and Marketing Head: Salam Khan, 1 year working experience on a private farm.

C) Customer Service & medical Head: Dr. Samia Jaman, Medical Officer

d) Head of IT: MD. Ali, 2 years working experience.

e) Head of finance: Abul Hossain, 5 years working experience on a private bank.

ManagingDirector

Manager

Sales & Marketing

HeadEmployees

Customer Service & Medical

Emoloyees

Head of IT Employees

Head of Finance

Employees

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nabanna.com is an Online Service Business. It depends on an organized division of

responsibilities in order to run an efficient, diversified business. Main decisions and

responsibilities will be divided between the two top partners. We will focus on maintaining high

quality and a cohesive business entity. Top division employees will be given specific

responsibilities such as Sales & Marketing, Customer Service & medical, IT Management,

Finance, and Business Development.

nabanna.com completely departmentalized. The Managing Director assumes the

responsibilities of the manager while his counterpart, will be responsible for the duties of MD.

We will make all decisions in accordance with the company mission our employees are

delegated tasks based upon their specialty.

Every six months, the manager will assess the results of these tasks, and the personality of the

employee involved, to determine promotion and salary issues.

If we develop our business in a wonderful way we might use outside consultants to develop our

business. Outside consultants show us new way of running this. So everything depends on

business idea and strong managing system.

Personnel Plan

The personnel needs of nabanna.com-

Year-1 (৳) Year-2(৳) Year-3(৳) Year-4(৳) Year-5(৳)

Manager 25,000 25,000 30,000 35,000 40,000

Employees 20,000 20,000 23,000 26,000 33,000

Total People 20 20 22 22 24

Total Payroll 45,000 45,000 53,000 61,000 73,000

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Financial Plan:

We expect sales growth will be slow to moderate and that cash flows will be steady with annual

sales projected to equal Tk. 120000, Tk. 195000, and Tk.243000, Tk.288000, Tk. 336000 for the

years 2014-2018.

Important Assumptions

The financial plan depends on important assumptions, most of which are shown in the

following table. The key assumptions are:

>We assume a slow- growth economy without major recession

>We assume there will not be any direct competitors for at least several years

>We assume access to equity capital and financing sufficient to maintain our financial plan as

shown in the table

Once the company reaches a sufficient level of profitable and accumulates a cash reserve it

plans to invest 50% of profits in research and development of new products, existing product

and operational improvements, and to expand marketing and sales efforts to foreign markets.

38% of profits will be invested in low risk financial instruments. 10% of profits will be used for

employee bonuses. 1% of profits will be used to support non-profit organizations that support

the health welfare of women in the Bangladesh. The remaining 1% will be used to support non-

profit organizations that promote the health and welfare of pets in the Bangladesh. These

expenses will be itemized in the later years of the business plans.

In the event that the company does not earn a profit, additional funds will be sought to finance

research and development (R&D) activities. 100% of funding obtained during break-even or loss

periods will be used for R&D, while the investment in financial instruments, employee bonuses

and charitable giving activities will be foregone.

General Assumptions

The general assumption for this plan are shown in the following table

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Income Statement

Projected Year-1

Projected Year-2

Projected Year-3

Projected Year-4

Projected Year-5

Total Revenue ৳ 190000 ৳210000 ৳294000 ৳400000 ৳510000

Salaries/Payroll ৳40000 ৳40000 ৳45000 ৳50000 ৳60000

Payroll Taxes/Benefits ৳5000 ৳5000 ৳8000 ৳11000 ৳13000

Maint./Repair/Breakage ৳10000 ৳8000 ৳8500 ৳7000 ৳8000

Rent ৳25000 ৳25000 ৳25000 ৳25000 ৳25000

Advertising ৳20000 ৳15000 ৳15000 ৳24000 ৳15000

License ৳20000 ৳20000 ৳20000 ৳20000 ৳20000

Leases ৳25000 ৳25000 ৳25000 ৳25000 ৳25000

Insurance ৳20000 ৳20000 ৳20000 ৳20000 ৳20000 Utilities ৳25000 ৳25000 ৳26000 ৳27000 ৳32000

Supplies ৳40000 ৳35000 ৳40000 ৳55000 ৳58000

Miscellaneous ৳20000 ৳7000 ৳8000 ৳8000 ৳8500

Security expense ৳21000 ৳17000 ৳20000 ৳15000 ৳18000

Depreciation ৳11000 ৳8000 ৳6500 ৳6000 ৳5500

TOTAL OPERATING EXPENSE

৳282000 ৳250000 ৳267000 ৳293000 ৳308000

Income before Taxes (৳92000) (৳40000) ৳27000 ৳107000 ৳202000

Income Taxes(15%) ৳4050 ৳16050 ৳30300

NET INCOME (৳92000) (৳40000) ৳22950 ৳90950 ৳171700

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5 years Balance Sheet

Projected Projected Projected Projected Projected

Year 1 Year 2 Year 3 Year 4 Year 5

Cash ৳100000 ৳80000 ৳135000 ৳250000 ৳450000

Accounts Receivable

৳20000 ৳25000 ৳34000 ৳45000 ৳40000

Lease ৳25000 ৳25000 ৳25000 ৳25000 ৳25000

Rent ৳25000 ৳25000 ৳25000 ৳25000 ৳25000

Furniture ৳50000 ৳40000 ৳55000 ৳60000 ৳50000

Depreciation ৳(11000) ৳(8000) ৳(6500) ৳(6000) ৳(5500)

Supplies ৳40000 ৳35000 ৳40000 ৳55000 ৳58000

Equipments ৳30000 ৳50000 ৳55000 ৳50000 ৳43000

License Fees ৳20000 ৳20000 ৳20000 ৳20000 ৳20000

Insurance ৳20000 ৳20000 ৳20000 ৳20000 ৳20000

Advertising and Promotion

৳20000 ৳15000 ৳15000 ৳24000 ৳15000

Long Term

Assets ৳80000 ৳125000 ৳215000 ৳305000 ৳445000

Total Assets ৳394000 ৳427000 ৳607500 ৳848000 ৳1160500

Capital ৳150000 ৳200000 ৳290000 ৳310000 ৳375000

Owner's Income

৳(50000) ৳(23000) ৳60000 ৳385000 ৳580000

Accounts Payable

৳94000 ৳100000 ৳135000 ৳75000 ৳90000

Interest Payable

৳50000 ৳37000 ৳25000 ৳15000 ৳20000

Salaries Payable

৳75000 ৳85000 ৳80000 ৳50000 ৳75500

Notes payable ৳75000 ৳28000 ৳17500 ৳13000 ৳20000

Total Liabilities ৳394000 ৳427000 ৳607500 ৳848000 ৳1160500

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Break-even analyses

Fixed cost = ৳90000

Price per month = ৳399333.33

Variable cost per month = ৳19666.6

So, Break-even point in months,

= Fixed costs ÷ (Price per unit – Variable costs)

= 90000 ÷ (39333.33 – 19666.6)

= 90000 ÷ 19666.7

= 4.576 months

Our break-even point will be shown in 4.576 months.

Break Even Analysis graph

1 2 3 4 5 6 7 8 9 10 11 12 13 14

product sold per

month0 1 2 3 4 4.6 5 6 7 8 9 10 11 12

Net proft(loss) -90 -70 -50 -31 -11 0 833 280 476 673 870 1E+ 1E+ 1E+

-150000

-100000

-50000

0

50000

100000

150000

200000

Axi

s Ti

tle

Chart Title

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Conclusion:

We feel that our business will be successful and we will be able to meet the needs of our

customer and give them a 100% satisfied service. Making the name of our business in the

country is our target. We will put our best to make this business a successful one. We are

looking forward to cover up all our expenses as mentioned in the financial part and achieve our

goal in the proper way. Our business is not so big, we are very much hopeful that we will be

successful one.

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References:

- How to Start a Pet Shop?- wikiHow www.wikihow.com

- Sample Company Profile -www.corporateaffiliations.com

- Pet supplies and accessories - www.petsmart.com

- Online Store Business Plans -Bplans

- How to Write a Management Summary? -Business-Idea

- What Are the Key Assumptions of a Business Plan? -smallbusiness.chron.com › Business

Planning & Strategy › Business Plans

- How to calculate break-even point? -www.entrepreneur.com

- Business strategy section - SuccessFactors.com

- -Strategy Pyramids – Google Image