BUSINESS PLAN

GIFT SERVICE STORE

Submitted by: - Harshita Saini

M.sc final
Lady Irwin College
COVER SHEET

Name of the Business: What is in the box

Name of the Entrepreneur and add of the Unit: Shop no G-21,

Manish Abhinav plaza,
Near Ashirwad chowk,
Main road, Dwarka Sec-5,
New delhi-75.

Name of the products/services: Gift gallery

Tel. No. : 8447635660

Email and website add: harshisaini93@gmail.com

Constitution of the firm: sole proprietorship

Educational qualification of the Entrepreneur:

Work experience of the Entrepreneur:

Proposed Locations (If any):

Name and address of the bank/ financial Institution which you want to deal with:

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EXECUTIVE SUMMARY
Gifts occupy an important place in our social life. They build our relations with other people.
We exchange gifts with other people on different festivals, events etc. Gifts speak our love for
one other. There are gifts which are given merely out of material considerations. Our
religion attaches great importance to the exchange of gifts. The selection of gift is an art.
Different creative gifts become a part of the memory of the person who receives . Gifts are
token of love, trust and good will. But, now in this busy schedule life no one has time to
create gift, choose gifts and give them to their friends and relatives. By foreseeing this
requirement we are aiming to open a gift shop which will offers a wide range of cards and
gifts. Our motto is fun, functional & funky. We are providing gifts for all purpose and for
all age groups.
What is in the box located in the Dwarka sec-5, Abhinav plaza, New-Delhi-75 and
specialized in an assortment of high-quality gifts ranging from greeting cards to home
accents. We cater to middle and upper class clients and affluent clients. Our store image
exemplifies what customers are seeking in home accents and gifts which is a "Modern &
Urban Life Style" look and feel. What differentiates our company from other specialty retail
shops are the printing services we offer, our "one-of-a-kind" product line and a number of
exclusive, proprietary products we designed ourselves. Before What is in the box grand
opening

we

will

have

established

our

website.

SERVICE
We also provide different membership to our customers, in which we provide service of free
delivering gifts to our customers at their desired budgets. Only they have to take our
membership and forget the worry of keeping reminder about relatives birthdays and
anniversary. We will provide the gift from your chosen budget. Remind you and deliver the
gifts to your relative doorstep. All these services are provided to our membership holders.
We are providing three types of membership which is mentioned in the membership form.

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Membership Form

Name:-

Address: Photo

Mobile no: -

Phone no:-

Email address:-

Number of occasion:(Lock a chart given below)

Type 1

Type 2

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Type 3

1000-2000 Rs

2000-3000 Rs

3000-5000 Rs

Occasion
Rs

Occasion

05
5000

05
7500

05
10000

10
9500

10
12000

10
19000

15
13500

15
18000

15
30000

20
17000

20
25000

20
50000

Gift budget:-

Details of gift:-

Remark (if any):-

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Rs

Occasion

Rs

Date:-

Name with Signature

Address where the gifts to be delivered

ADRRESS 1: -

ADRRESS 2: -

ADRRESS 3: -

ADRRESS 4: -

ADRRESS 5: -

Page 6

ADRRESS 6: -

ADRRESS 7: -

ADRRESS 8: -

ADRRESS 9: -

ADRRESS 10: -

ADRRESS 11: -

Page 7

ADRRESS 12: -

ADRRESS 13: -

ADRRESS 14: -

ADRRESS 15: -

ADRRESS 16: -

ADRRESS 1 7: -

ADRRESS 18: -

Page 8

ADRRESS 19: -

ADRRESS 20: -

COMPANY SUMMARY

INTRODUCTION

Our store is first one who is providing specialty cards and gifts that
specializes in "one-of-a-kind" at affordable prices. Also we are providing
service of free home delivery of gifts to their or their relative house at
birthday, occasion, and festivals. At presently, no other gift shop, store or
gallery is providing this unique service, and which make us completely
different from others.

OBJECTIVES

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Generate total sales revenue to establish a profit at the end of year one.

Implement e-commerce capabilities to our store.

Establish an annual growth rate of approximately 20%.

Maintain a direct cost of sales of 45% or less.

Establish 50% of our merchandise as proprietary products in year two.

Establish our company as a premier "Brand Recognized" name throughout the

community in year one.

MISSION

What is in the box is a specialty cards and gifts that specializes in "one-

of-a kind" not commonly found in the larger retail market. We are
dedicated to providing customers exceptional customer service in a visibly
relaxing and engaging shopping environment. Our mission is to provide
customers with unique, high-quality gifts at affordable prices.

KEYS TO SUCCESS

Acquire and personally design a product line of "one-of-kind" handcrafted and unique
products.

Establish a loyal customer following by offering seasonal promotions / discounts,

distributing direct mail postcards, offering quality merchandise at affordable prices, and
providing a visibly inviting and comfortable shopping environment.

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Establish a "Brand Identity" that personifies high-quality and outstanding customer

service.

ORGANISTATIONAL CHART

ME

DELIVER
Y BOY

ASSISTA
NT

PEON
MARKET ANALYSIS

The ideal customer we expect to serve is:

Middle to Upper Class

Youth

Primarily Female

30-75 Years of Age

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Educated

Homeowner

Quality Conscious

Value Conscious

Family Oriented
We will attract these customers by offering unique and uncommon product selections not
found in the mass-market retail stores.
More and more consumers are seeking independent retailers that offer them the feel of home
with a more personalized shopping experience. As consumers become more time-deprived,
they are looking to shop at stores whose service offerings are as equal in quality and value to
their products.
To distinguish ourselves from surrounding specialty retailers, we provide numerous
customized services that offer customers a satisfying and unique shopping experience.

Plastic Gift Cards: Gift cards are available to customers when purchasing for gift
recipients may become a little difficult.

Graphic Design/Photography Services: These services are provided to complement

the personalization of our printing services and products. Equipment available to
support these services includes:

We also provide different membership to our customers as per their budget, in which
we provide service of free delivering gifts to our customers at their desired budgets.
Only they have to take our membership and forget the worry of keeping reminder
about relatives birthdays and anniversary. We will provide the gift from your chosen
budget. Remind you and deliver the gifts to your relative doorstep. All these services
are provided to our membership holders. We are providing three types of membership
which is mentioned in the membership form.

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COMPETITION AND BUYING PATTERNS

Brand name products sell well in stores that maintain a good selection, good location, and
knowledgeable, friendly employees. These are the most important factors when selling
collectibles and gifts.
There is only our store in the Abhinav plaza area that carries a wide variety of collectible
gifts. Other stores in the plaza area carry one or two categories of gifts but do not offer a wide
variety of collectible gifts.
COMPETITIVE EDGE

We will establish itself competitively as a unique retail environment through product offering
and friendly, personal customer service. With Ayushman hospital, drink and dine restaurant,
fire and ice restaurant, and different offices present in the Abhinav plaza and nearby plazas,
markets and also the Indraprastha University, houses all located within proposed site, we will
attempt to offer items that appeal to this diverse population.

STRATEGY AND IMPLEMENTATION SUMMARY

What is in the box will develop product offerings and marketing strategy to increase its
customer base while driving sales and profit.

MARKETING STRATEGY
What is in the box will focus its marketing efforts by advertising .
Advertisements

would

be

provided

on

the

T.V.

channels,

radios,

newspaper, magazines, pop ups on internet, and through blogs created.

Our service information is also present on our service website. We will also
increase consumer awareness, retain the existing customer base and
promote sales via seasonal postcard and newsletter mailings. The

Page 13

mailings will announce special events or holiday specials during the year.
These events will be used to sell slow-moving products and vendor special
promotions. This means our marketing resources will be centred on both
sales promotions (events, displays) and personal sales (customer service,
friendly atmosphere).

SALES STRAREGY
We will approach sales from a salesperson-customer relationship basis. All customers will be
assisted in a very personal manner. Gathering key customer information and seeking
performance feedback on the products and services offered will assist us in the following
ways:

Targeting our marketing efforts more effectively.

Developing product offers and merchandising formats that will increase sales.

Developing services that enhance the shopping experience.

Increase awareness of what is in the box within the retail consumer marketplace.

Develop future sales opportunities that allow for continued growth of the business.

MARKETING
Marketing is the activity, set of institutions, and processes for creating, communicating,
delivering, and exchanging offering that have value for customers, clients, partners, and
society at large. The management process through which goods and services move from
concept to the customer. It includes the coordination of four elements called the 4 P's of
marketing:
(1) Identification, selection and development of a product,
(2) Determination of its price,
(3) Selection of a distribution channel to reach the customer's place, and
(4) Development and implementation of a promotional strategy.

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Marketing is based on thinking about the business in terms of customer needs and their
satisfaction. Marketing differs from selling because "Selling concerns itself with the tricks
and techniques of getting people to exchange their cash for your product. It is not concerned
with the values that the exchange is all about. And it does not, as marketing invariable does,
view the entire business process as consisting of a tightly integrated effort to discover, create,
arouse and satisfy customer needs." In other words, marketing has less to do with getting
customers to pay for your product as it does developing a demand for that product and
fulfilling the customer's needs.
Marketing is the process by which companies create customer interest in products or
services. It generates the strategy that underlies sales techniques, business communication,
and business development. It is an integrated process through which companies build strong
customer relationships and create value for their customers and for themselves.
The heart of the business success lies in its marketing. Most aspects of your business depend
on successful marketing. The overall marketing umbrella covers advertising, public relations,
promotions and sales. Marketing is a process by which a product or service is introduced and
promoted to potential customers. Without marketing, your business may offer the best
products or services in your industry, but none of your potential customers would know about
it. Without marketing, sales may crash and companies may have to close.
Features of Marketing

Getting Word Out - For a business to succeed, the product or service it provides
must be known to potential buyers. Unless the business is known in the community
and have communication with your customers readily available, you have to use
marketing strategies to create product or service awareness. Without marketing, your
potential customers may never be aware of your business offerings and your business
may not be given the opportunity to progress and succeed. Using marketing to
promote your product, service and company provides your business with a chance of

being discovered by prospective customers.

Higher Sales- Once your product, service or company gets on the radar screen of
your prospects; it increases your chances that consumers will make a purchase. As
awareness becomes a reality, it is also the point where new customers start to spread

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the word, telling friends and family about this amazing new product they discovered.
Your sales will steadily increase as the word spreads. Without employing marketing
strategies, these sales may not have ever happened; without sales, a company cannot

succeed.
Company Reputation- The success of a company often rests on a solid reputation.
Marketing builds brand name recognition or product recall with a company. When a
company reaches the high expectations of the public, its reputation stands on firmer
ground. As your reputation grows, the business expands and sales increase. The
reputation of your company is built through active participation in community
programs, effective communication- externally and quality products or services,

which are created or supported by marketing efforts.

Healthy Competition- Marketing also fosters an environment in the marketplace for
healthy completion. Marketing efforts get the word out on pricing of products and
services, which not only reaches the intended consumers, but also reaches other
companies competing for the consumers business. As opposed to companies that
have a monopoly on products and services that can charge almost any price,
marketing helps keep pricing competitive for a business to try to win over consumers
before its competition does. Without competition, well known companies would
continue to sell while lesser known companies or new companies would stand little
chance of ever becoming successful. Marketing facilitates the healthy competition
that allows small businesses and new businesses to be successful enter and grow in

the marketplace.
Considerations- Although marketing is hugely important for a business to succeed, it
can also be very expensive. In its first year, a company might spend as much as half of
its sales on marketing programs. After the first year, a marketing budget can reach as
much as 30 percent sometimes more of the annual sales. A marketing program that
gives your company the best chance is a healthy mix of different forms of marketing,
such as website development, public relations, print and broadcast advertising, design
and printing for all print materials, trade shows and other special events.

MARKETING MIX
The marketing mix and the 4 Ps of marketing are often used as synonyms for each other. In
fact, they are not necessarily the same thing.

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"Marketing mix" is a general phrase used to describe the different kinds of choices
organizations have to make in the whole process of bringing a product or service to market.
The 4Ps is one way probably the best-known way of defining the marketing mix, and was
first expressed in 1960 by E J McCarthy.
The 4Ps are:

Product (or Service)

Place
Price
Promotion

The following describes the four P's of marketing:

Product
Products are the goods and services that your business provides for sale to your target market.
When developing a product you should consider quality, design, features, packaging,
customer service and any subsequent after-sales service.
Place
Place is in regards to distribution, location and methods of getting the product to the
customer. This includes the location of your business, shop front, distributors, logistics and
the potential use of the internet to sell products directly to consumers.
Price
Price concerns the amount of money that customers must pay in order to purchase your
products. There are a number of considerations in relation to price including price setting,
discounting, credit and cash purchases as well as credit collection.
Promotion

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Promotion refers to the act of communicating the benefits and value of your product to
consumers. It then involves persuading general consumers to become customers of your
business using methods such as advertising, direct marketing, personal selling and sales
promotion.
MARKETING MIX FOR WHAT IS IN THE BOX
PRODUCT DESCRIPTION
The following is an overview of our product line by category:
Printing Products:

Brochures

Business cards

12-month calendars

Special occasion cards: Greeting cards.

Photo restoration/photo enlargements

2-year pocket planners

Promotional materials
Home Accessories:

Bamboo garden vase collection

Decorative and scented candles

Framed artwork

Shadow boxes

Wine accessories

Tabletop Accents: Coffee mugs, place mats, platters and coasters

Personal Care Accents:

Scented body lotion

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Scented bath salt

Facial and body soaps

Body gel

Aromatherapy products
SERVICE
We also provide different membership to our customers, in which we provide service of free
delivering gifts to our customers at their desired budgets. Only they have to take our
membership and forget the worry of keeping reminder about relatives birthdays and
anniversary. We will provide the gift from your chosen budget. Remind you and deliver the
gifts to your relative doorstep. All these services are provided to our membership holders.
We are providing three types of membership which is mentioned in the membership form.
PLACE
What is in the box located in the Dwarka sec-5, Manish Abhinav plaza which is main
market of Dwarka and also nearer to various restaurant, university and offices. So the place is
easy to reach for more number of customers and of different category, which will no doubt
increase our sale. Also the information of place is provided on the webpage of the gallery,
blog created, advertisements on the T.V, magazines, newspaper, internet, and face book. So
that people easily reach to us.

PRICE
Product pricing structures will be based on cost-plus and competitive pricing. Cost-plus
pricing is basing the price on the basis of all costs plus a mark-up to cover overhead costs.
Our mark-up cost is 33%. All orders will require a 50% deposit upon receiving final
shipment. For bulk orders, a 50% deposit is required and a 15% discount will be given to
customers. There will be seasonal and periodic sales on merchandise due to the possible
overstock of inventory.

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Design and Photography Service Fee Structures will be determined by the particular
requirements of individual projects. Typically, compensation to What is in the box includes
a retainer design fee in addition to the cost plus system of billing for supplies and materials.
This structure accounts for research, design time and consulting. Although our products are
high-end and stylish, our pricing structure remains affordable and in-line with other specialty
gift retailers. Our pricing structure is also based on the value the customers place on these
products.

PROMOTION
Our service and products message would be provided on different colleges and localities and
is sold free of cost. Advertisements would be provided on the T.V. channels, radios,
newspaper, magazines, pop ups on internet, and through blogs created. Our service
information is also present on our service website.
We will utilize our own printing capabilities to publish business cards, brochures and
promotional postcards. This approach will definitely reduce our monthly advertising costs.

Initial costs will be planned accordingly and kept to a minimum. The shop recognizes the
importance of its image, first-time impressions and customer service and it will not sacrifice
this in order to satisfy the bottom line.
It is anticipated that marketing costs will be significantly higher in the first three months of
business. Marketing activities will be closely monitored and constantly analyzed to decide
what marketing activities are successful and what are not. A marketing budget will be set for
the first store and for each subsequent store.
Because our service and products are unknown to the general consumer, marketing activities
are vitally important. We plan on implementing several marketing strategies as outlined in the
marketing section of this business plan. To establish service and brand awareness, we will
give-away small booklets to encourage first timers to try our service. Although we have
quality service, building a loyal customer base will take time. We realize that training and

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empowerment of our employees will be reflected in their customer service and that word-ofmouth advertising will be paramount to our success.

BUISNESS RISKS
The possibility that a company will have lower than anticipated profits, or that it will
experience a loss rather than a profit. Business risk is influenced by numerous factors,
including sales volume, per-unit price, input costs, competition, and overall economic climate
and government regulations. A company with a higher business risk should choose a capital
structure that has a lower debt ratio to ensure that it can meet its financial obligations at all
times.

Competition

Archies gallery is very well known gift gallery in India and its franchises are more than 350
in above 100 cities. It could create a business risks in future. It known as a super brand for the
gifts.

Inability to control costs/rising input prices

Low margins mean that costs have major effects on profitability.

Wrong price image

Price image can often be more important in determining sales than actual product prices.
Adjusting complex pricing and branding strategies to adapt to trends such as shifting
consumer behavior is therefore a constant challenge.

Failure to respond to shifting consumer behavior

During the recent recession, consumers reduced consumption, cut back on lavish and
impulsive shopping behavior, and increasingly used online price- comparison sites. This
change in behavior may be so far off the trend line that a return to pre-recession consumption
patterns may no longer be realistic.

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FINACIAL PROJECTION
FIXED CAPITAL
Land, Area & Value
S.No
.

Description

Cost(Rs.)

Land (rent per month)

Rs.35,000/-

Total ( annually)

Rs4,20,000/-

Office Equipment
S.No

Description

Quantity

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Cost (Rs.)

Total

.
1

Laptop

Rs. 30,000/-

Rs.30,000/-

Computer

Rs.15,000/-

Rs.15,000/-

Printer

Rs.12,000/-

Rs.12,000/-

Air-conditioner

Rs.20,000/-

Rs.20,000/-

Fan

Rs.3000/-

Rs.3,000/-

Bike

Rs.50,000/-

Rs.50,000/-

Fittings

Rs.1,00,000/-

Rs.1,00,000/-

TOTAL

Rs.2,30,000/-

TOTAL FIXED CAPITAL: Rs.6, 50,000/-

WORKING CAPITAL
Human Resource Capital (annually)
S.No
.

Workers

Number

Annual Cost
(Rs.)

Assistant

Rs.1,20,000/-

Delivery boy

Rs.96,000/-

Peon

Rs.72,000/-

Total

Rs. 2,88,000/-

Other Expenditure (annually)

S.No
.

Description

Annual Cost
(Rs.)

Raw Material

Rs.9,50,000/-

Electricity

Rs.30,000/-

Telephone

Rs.18,000/-

Stationary

Rs.12,000/-

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Transport

Rs.60,000/-

Maintenance

Rs.25,000/-

Advertising &
Publicity

Rs.1,80,000/-

Permit and Licenses

Rs.800/-

10

Utilities and internet

Rs.7000/-

11

Cellular phone

Rs. 12,000/-

12

Insurance

Rs. 2000/-

13

Delivery cost

Rs. 45,625/-

Total Over heads

Rs.
13,42,425/-

TOTAL WORKING CAPITAL:

1) Total Investment
Total Fixed Capital
= Rs. 6, 50,000/Total Working Capital = Rs.16, 30,425/TOTAL
= Rs. 22, 80, 425/-

2) Cost of Production
Total Recurring Expenditure (Working capital)
= Rs. 16, 30, 425/Depreciation on Machinery
= Nil
Depreciation on Furniture, tools & equipment s
= Rs. 2, 30,000/TOTAL COST OF PRODUCTION
= Rs. 18, 60, 425/3)

Turnover Per Year

Total Turnover (approx.) =

4) Net Profit per year

= Total Turnover/ year Total Investment

5) Net Profit Ratio

= Net Profit
X 100
Sales Turnover
= Net Profit (per year) X 100
Total Investment

6) Rate of Return

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