A Project Appraisal Report On
“Mobile store business” Shop name Fancy mobile store Submitted ubmitted in parti al fu lf il lment for the award award of the Post Post Graduate Di ploma in M anageme anagement nt
Submitted by Rajat Pandey Roll No: M2013050 Under the guidance of Dr. Chitra Bhatia
APEEJAY INSTITUTE OF TECHNOLOGY SCHOOL OF MANAGEMENT & COMPUTER SCIENCE GREATER NOIDA
2013-2015 1
CONTEXT Context
Page no.
Idea generation
3
Selection of idea
4
Implementation of idea
5
Mobile phone brands
6
Features of our store
7
Environment analysis
8
Market analysis
9
Swot analysis
10
Financial analysis
11
Project cost estimation
12
Project cost control
13
Revenue analysis
14
Unique selling proportion
15
Feasibility report
16
2
IDEA GENERATION • I like to do business which is currently very popular and maximum demanded by customers then I searched in market and I found that people especially young generation are freak and crazy for mobile, smart phone, and tablets etc. I want to choose Lucknow my home town as a business location which is very well known by me and where I can run my business in a better way, I found a problem in my area that there are many small mobile store but a big multi brand mobile store is not available in my area, which not provided enough choice and quality handsets to the customers, so as per this problem I found a gap or opportunity for me to make a mobile store business. • I like to open a mobile store in my city Lucknow near to iim road. • I want to open a mobile store which consist all brands of mobile at least cost from other mobile shop. • I also want to launch website for mobile purchase and repair wanted by customers from my shop www.fancymobile.co.in which broaden my business area.
3
SELECTION OF IDEA • following basis i have made selection of mobile busin ess idea. • When I see in my area there was no good mobile shop, people are going to purchase mobile in some other area except our area because according to their choice there is no alternative shop here, so I thought I take benefit of this problem and I can open a good mobile store in my area which fulfill requirement of my area customers and others also. • Through internet facility I can compete with e-commerce websites also and it also more broaden my business area where any customer from Lucknow and in near areas customer can order and purchase mobile and can also avail services and there is no delivery cost they need to pay.
4
IMPLEMENTATION OF IDEA • In order to solve the problem of unavailability of good and standard mobile store in my area IIM road i want to open a joint partnership mobile store business with my two partners’ namePrateek and Shivam. •
I want to arrange the sources of fund through partnership with my two partners’.
• I also want to employ well trained workers who have computer hardware and software knowledge. • I want to find a shop whose area is at least 1500 sq.ft which is available in AZIZ plaza.
5
MOBILEPHONE BRANDS
• following are the mobile phone brands which are available in my mobile shop are as follows-
6
FEATURES OF OUR MOBILE STORE • We have well-furnished mobile store with interior and exterior designed. • Our shop in fully air conditioned. • We Quality service to customers. • We have proper after sale service facility. • We help customers to make choice as per their use.
7
SWOT (STRENGHT WEAKNESS OPPORTUNITY AND THREATS)
STRENGHT
• Big mobile store • Financially sound • Experienced workers • Quality service • Online purchasing though website www.fancymobile.com • Cash on delivery • Discounts
WEAKNESS
• no prior experience • New entrant • Lesser known by people in my area
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OPPORTUNITY
• Multi brand mobile store is not available in that area is an opportunity. • Provide more choices to customers. • Provide better mobile in low prices.
THREAT
• Threats from competitors like in my area I have competition with Sai mobile store, Jagdish mobiles. • Some small mobile shop also trying to capture our market share • Threats from online giants’ e-commerce like flipkart and snapdeal amazon.
9
TECHNICAL ANALYSIS
10
FINANCIAL ANALYSIS
• SOURCES OF F UN DS We have a partnership shop in which there are three partners including me SHIVAM, PRATEEK, RAJAT. We arrange capitals are as follows Shivam- 10 lacs, Prateek- 10 lacs, RajatRs 14.04 lacs.
We also taken credit from ICICI BANK loan worth 15 lacs.
So total sources of fund rise to Rs. 49.04 lacs.
11
PROJECT ESTIMATION COST • We have a rented shop in AZIZ PLAZA which is near to iim road rent 20000 per month and annually 20000*12= 2.4 lacs Rs. area of shop is 1500 sq. ft. • Cost incurred in furnishing, electrical appliances like fan, water coolers, interior and exterior decoration 18 lacs. • 5 workers recruited at a salary of 8000 per month total salary 40000 total year salary of workers 480000 Rs. • Inventory purchased which include mobiles, tablets and their accessories worth Rs.20 lacs. •
Invertor 40000 Rs, A.C 100000 RS. FURNITURES 100000 RS.
• mobile technicians also employed at a salary of 12000 Rs. per month Annual salary of mobile technicians is 144000 Rs. • total estimation cost 4904000 Rs.
12
PROJECT COST CONTROL • BARGAI NI NG WITH SUPPLI ER We purchase materials in bulk and we will not purchase with any one supplier but we would purchase more than 4, which provide me the material in cheaper rate than other • BARGAI NI NG WI TH SERVI CE PROVID ER Bargaining with Bank and try to reduce the cost of finance •
CONTROL TH E COST OF CAPI TAL
We would negotiate with more than one bank and search new source of finance which provide me loan in cheaper rate of interest.
13
REVENUE ANALYSIS • Estimated Revenue is realised from the sale of mobiles and tablets. and, mobile repairing at initial stage in our business estimated sale is maintained Upto minimum 25000 Rs. Per day it Is based on our personal thought this figure is hypothetical • 25000 Rs. for one day • 750000 Rs. for month • Annual estimated sale 90 lacs. • Estimated revenue = 90 lacs. - 49,04,000= 40,96,000
14
UNIQUE SELLING PROPORTION • We provide cheap range mobile from other shops. • We create positioning among every set of consumers. • Services quality is better than others. • If our customer feel that products is not fulfil and meeting objectives of the pre desire wants than in that case we provide home mechanism facility our technician go to the house and make repair and service required.
15
FEASIBILITY REPORT
• This project is totally feasible because on that area there is not any good mobile store, people who want to purchase mobile they are going to another place except this area so, in this matter that concept is really works and totally feasible according there need and preference of the customers on this area.
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