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 countrys 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. Peoples 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 dont 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 I nternet:
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






Porters Five Forces:


The main theme of the company is to provide with chemical free fresh fruits and vegetables with
premium pricing.Porters 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 winwin
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:
Porters 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
and development in the
management process
Set up a personal service
centers that offers flexibility,
value and reliability to our
customers
Expand newer opportunities
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. Thats 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 thats 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 customers 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:

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.





Gender
Male
Female

Question 3:

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.







0
10
20
30
40
50
Husband Wife Child Others
Who is responsible for the grocery
shopping in your family?

Question 4:


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.




13%
40%
47%
0%
How frequently do you shop for fruits
& vegetables?
Everyday
Weekly
Two or three days a week
More than three days a
week

Question 5:

It is important to understand our target market; Store 2 Doors 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.




0
10
20
30
40
50
60
70
1 2 3 4 and above
How many members are there in
your family?

Question 6:

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.




47%
37%
13%
3%
Are you willing to pay a premium
price for the higher quality of our
products?
Yes, I can pay
Yes, but It has to be
reasonable
Yes, at times but not
regular
No, I simply cannot afford
it

Question 7:

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.



0
10
20
30
40
50
60
Home Delivery Retail Store Others
Which to you is the most preferable
form of purchase?

Question 8:

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.




22%
21%
18%
17%
9%
3%
5%
5%
What are the attributes you look in to
while purchasing fruit and
vegetables?
Hygiene
Freshness
Price
Quality
Seasonal Availability
Taste
Color (Ripe/Raw)
Vicinity or Origin

Question 10:

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.



7%
7%
17%
53%
16%
Are you currently satisfied with the quality of
fruits & vegetables sold in the bazaar and
department store?
Yes, I am fully satisfied
Yes , but there are small doubts
Neutral
No, but there are no other options
to purchase

Question 11:

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.




87%
10%
3%
Are you in favor of organic food (fruits &
vegetables)?
Yes, I am completely pleased
Yes, but some amount of
fertilizers required
No, there needs to be proper
cultivation through fertilizers and
other methods

Question 12:

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.



0 10 20 30 40 50 60 70 80
Providing qualitative supply of seasonal local
fruits & vegetables
Providing fresh supply of off-season local fruits &
vegetables
Providing quality unique foreign fruits &
vegetables
What do you expect from our product line?

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 todays
consumers.

Place:
Distribution is one of the classic 4 Ps of marketing. Its 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:
Fruits
Sl Name Price
1 Mango


120
2 Apple 138
3 Orange 135
4 Blackberry 105
5 Guava 55
6 Jack fruit 120
7 Litchi 225
8 Wood apple 55
Vegetables
Sl Name Price
1 Basil 13
2 Brinjal 25
3 Carrot 60
4 Cucumber 30
5 Lemon 15
6 Gourd 28
7 Ladys finger 38
8 Potato 35
9 Pumpkin 28
10 Red amaranth (per bundle) 06
11 Snake gourd 35
12 Patol 33
13
14
Balsam apple
Tomato
43
55

9 Date 150
10 Grape 225
11 Papaw 55
12 Banana( per dozen) 60

Promotion:
MARKETING GOAL

The goal of a Store 2 Doors 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 well 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.
Lets 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 dont have to go to market for buying your Fresh and Chemical free fruits and
vegetables. Well 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 1
st
till January 31
st
.
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 consumers 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 dont 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 whats 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 topto-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 2015
CASH FLOW FROM OPERATING
ACTIVITIES


Net 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
ACTIVITIES


Cash proceeds from bank loan

3,000,000
- -
Net cash flow from financing activities
3,000,000

(100,000)
(200,000)


CASH FLOWS FROM INVESTING
ACTIVITIES

Purchase of Machinery & equipment
(1,400,000)
- -
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, 2014,2015
Details:
2013 % of sales 2014 % of sales
2015
Application of
Funds

Fixed Assets

Delivery 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 Assets
Cash 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 Liabilities
Accounts payable
33,500

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 Liability
Bank 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 Analysis
2013 2014 2015
Fixed Cost
Delivery Van
1,400,000


1,400,000

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
300,000

280,000
260,000
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










-
1,000
2,000
3,000
4,000
5,000
6,000
2013 2014 2015
Break-even point in units sold
Break-even point in
units sold

Ratio Analysis
2013 2014 2015 Formulas
Current Ratio
26.9 25.8 22.9

Debt Ratio
1.2 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












20
21
22
23
24
25
26
27
28
1 2 3
Current Ratio
Current Ratio
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1 2 3
Debt Ratio
Debt Ratio
-1
0
1
2
3
4
5
6
1 2 3
Times Interest Earned
Times Interest
Earned




0
0.5
1
1.5
2
2.5
3
1 2 3
Total Asset Turnover
Total Asset Turnover
0
0.5
1
1.5
2
2.5
3
1 2 3
Fixed Asset Turnover
Fixed Asset Turnover
0
5
10
15
20
25
30
1 2 3
Days sales outstanding
Days sales
outstanding





-0.05
0
0.05
0.1
0.15
0.2
1 2 3
Net profit margin
Net profit margin
-0.1
0
0.1
0.2
0.3
0.4
0.5
1 2 3
Return on asset
Return on asset