A Business Plan –EW World

Submitted as an Internship Project Report

In partial fulfillment of the requirements for the
Award of degree of Master of Business Administration

2009 – 2011

Submitted by: Guided by:

Ritu Gupta Mrs. Anjali
Sharma

BHARATI VIDYAPEETH DEEMED UNIVERSITY INSTITUTE OF

MANAGEMENT & RESEARCH, NEW DELHI
An ISO 9001:2008 Certified Institute
NAAC Accredited Grade “A” University
CRISIL Grading – MBA Programme

A * - National Level

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 A ** - State Level

Certificate of Originality

This is to certify that the Business Plan entitled “EW World COMPANY”
Submitted to Bharati Vidyapeeth Deemed University Institute of
Management & Research, New Delhi in partial fulfillment of the
requirement for the award of the degree of MBA is an original work
carried out by Ms. Ritu Gupta under the guidance of Mrs. Anjali Sharma
The matter embodied in this project is a genuine work done by Ritu
Gupta to the best of my knowledge and belief and has been submitted
neither to this University nor to any other University for the fulfillment of
the requirement of the course of study.

Signature of the Student Signature of the Guide

Designation

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 Certificate
This is to certify that the Business Plan titled “EW World COMPANY” is an
academic work done by “Ritu Gupta” under the guidance of Mrs. Anjali
Sharma submitted in the partial fulfillment of the requirement for the award
of the Degree of MBA from “Bharati Vidyapeeth Deemed University,
Pune”. The authenticity of the Business plan will be verified by the viva
examiner which includes the verification of data the contents therein and may
be rejected due to non-fulfillment of quality standards.
.

Prof (Dr.) Sachin S. Vernekar

(Director)

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Prepared By: Ritu Gupta

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 Acknowledgement

A Business plan usually falls short of its expectations unless guided by the right
person at the right time. This plan would not have completed without the
direct or indirect help and guidance of Mrs .Anjali Sharma.She provided me
with the necessary resources and an environment conducive for healthy learning
and training. They provided me with the required amount of freedom to
exercise our skill under their able guidance.

At the outset, I would like to take this opportunity to gratefully

acknowledge the very kind and patient guidance and encouragement I have
received from our Project Guide Mrs. Anjali Sharma throughout their critical
evaluation and suggestion at every stage of the Project, this report could never
have reached its present form.
I would be failing in my duties if I forget to mention the name of Mrs. Anjali
Sharma for his unconditional support during the course of the plan. I would like
to extend my thanks to my college ‘ BVUIMR.’ for the facilities availed to me in
terms of library work.
Last but not least I would like to thank all the respondents for giving their precious
time and relevant information and experience, I required, without which the
business plan would have been incomplete.

Name & signature of the student

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 Preface

Business plan is a very important part of an MBA curriculum. It provides

an optimistic iconography for ‘Future’ existence through which students are
able to see the real industrial environment which gives an opportunity to
relate theory with practice.

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FEATURE OF THIS REPORT:
Several features of this plan are designed to make it particularly easy for
professionals and students to understand.

STRUCTURE:
An empirical field approach complementing the text is followed.

HIGHLIGHTED POINTS:
Important points are highlighted at appropriate places to stress their
importance.

APPENDIXES:
The appendixes are intended to provide quick reference material or a
review of materials needed to understand the concepts discussed in this
report.

Name & signature of the student

Index

S.NO TOPIC PAGE NO

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1 Introduction 4

2 Executive Summary 5

3 Objectives
7
4 Product & Services 8
9
5 Market Research 10

6 Implementation Strategies
12
7 Target Market 13
14
8 Competition 15

9 Key Personnel
17
10 Organizational Structure
19
11 Online Problems & Proper Solutions

12 Advertising & Promotional Activities

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13 Financial Projection

14 Hardware & Software Requirements 21

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15 Security 27

16 Questionnaire

17 Conclusion

18 References

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Introduction

Entertainment World is an Online video Store which deals in all types of

all entertainment stuff such as Movies DVDs, Vcds, ACD, Games and also
Writable Mediums of different Companies like Shemaroo, T-series, Eidos,
Virgin Records Sony, BMG, EMI, Excel Videos, and many more.
Generally it will target Metropolitans but we are also planning to target
the people who are from urban cities like Surat because cities like Surat
don’t have any movie library or shop from where they can buy and watch
the movies etc. This business targets people from all the age group as we
deals in all type of DVD’s, from games to music n from music to movies.
Also we are planning to do this business only online it means this business
will hold only online presence because company don’t have interest in
offline presence as well as company is facing problems related to funds so
it is not possible to run business offline. And also an eCommerce website
can bring a host of benefits including access to a global market, greater
customer satisfaction, reduced marketing and sales costs, better customer
information, and streamlined business processes.

The website have the facilities of online registration which is absolutely

free, feedback or queries which will provide us customers opinion about
the products, site or services etc., also site have all related information
about the products and last but not the least Shopping Cart through
which you can purchase our products and enjoy our services. And also the
website have a categorized catalogue which will help the customer to
choose his desired product with ease.

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Executive Summary

This is a business plan of the Entertainment World,

which wants to spread its market in India, the
largest country in East Asia region. The Company
is interested in expanding its business keeping in
mind the future prospects of the trade relations in
the country.

The company plan contains a product report with much

of the focus on the product line. The plan clearly tells the
various ranges and categories of products for all age
groups. It contains the different issues related to
promotion and distribution of the products. Issues are
clearly defined in the report to make it reachable to the
managements and the loyalists.

There is also a business feasibility report, which gives

idea about the current Indian market and the
competitors for “Entertainment World” in India. EW
finds India more suitable to develop business plans here
after going through the various market potential of
different countries.

The plan also highlight on the topics like key personnel,

organizational structure, hardware and software
requirements and problems faced by company while
doing online business and its proper solutions also.
Regarding the security, an online marketing issue seems
to be very important so this report handles this topic very
efficiently. Then there is a market analysis, which tells us
about the target markets, and the competitors on the
market, and how the market can be segmented on the
basis of different criteria.

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In the end, report contains financial forecasts which
discuss development costs and initial funding, and the
amount of loan has been taken, and the break-even
analysis, and also the profit and loss statements with
balance sheets of the three consecutive financial years.

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Objectives

Every Company works towards some objectives, which

can be helpful in the survival of that company. Every
firm or the company has different aims to fulfill the needs
required in the market to make it successful. Objectives
give the business a clearly defined target. This can
motivate our employees. The objectives should be
SMART. Because is your objectives are not smart then
one would not be able to achieve them easily. Some
companies aim for only profit but our concern lies in the
customer satisfaction .The main objectives of our
company are:

Expansion

Expansion is one of our main objectives as EW has done

successful business so EW thought to expand his business
at national level. And as you know there is not better
place except Internet to expand business now days. So
EW is planning to use e-commerce technology to expand
business.

Level of service:

EW holds the image of high customer service &

satisfaction. So it also gives us a chance to improve our
services and to satisfy our customer needs more
efficiently and quickly.

Effectiveness

It is also important to improve effectiveness all the time.

It’s a best time to improve effectiveness regarding staff,
processing, transactions, services, and communication. It
is essential to overtake your mistakes and improve

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yourself. It also saves time and improves level of service
and also builds brand image and reputation.

Cost Reduction

Cost reduction is also primary objective of EW. As you

all know that online activities are cheaper as compared to
offline activities. It saves a lot in various fields, as we
don’t need as much workers, we don’t need any stores,
only thing that we need is an office and terminals for
processing and also a warehouses to store products.

Products And Services

Products

Entertainment world has a wide range of products as it

provides all type of Movies DVDs, VCDs, ACD, Games
and also Writable Mediums etc. EW has products for all
age groups, from children to teenagers and from
teenagers to senior citizens. EW only provides products
of other companies such as Shemaroo, T-series, Eidos,
Virgin Records, Sony, BMG, EMI, Excel Videos, and
many more and also they are original products not
pirated ones. EW also offers great packages or deals to
attract more and more customers. EW also deals in
Writable Discs from various companies such as
Moserbaer, Samsung, Sony, Eurovision, HP and many
more but these discs are available only in bundles of 10,
50 and 100. EW provides games DVDs for all type of
gizmos such as PC, Play station and gaming box.

Services Provided

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EW has a Back office, which will deal with complaints
matters related to Delivery, Site, and Services. Also Site
of EW has a feature of comments, queries and feedback
so customers can easily contact us. Customers can also
contact directly to the company if they have any
complaints regarding to the product. EW also offers
“cash on delivery” service so customer can only order the
product and pay the money after delivering the product.
Due to this service there is no risk involved in transaction
so it attracts more customers.

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Market Research

It is always considered that for a company to progress,

research work gives a strong root to the foundation.
Market research is just a broad examination of the
business atmosphere. Research provides outlook to the
various important issues in the development of the work
like competitor’s strategy, market structure, legal
analysis, technology advancement etc, which constitute
business environment. In simple terminology market
research is just a collection of facts and data’s related to
the market and economy functioning. Proper analysis
will give information and pave way for development.

Need of market research

With the growing demand of online marketing, a through

need of market functioning both on net and physical
market is essential. Every single hand detail of the
market from both the failures and successors will give
you knowledge of how to proceed. Understanding what
the customer wants and how to present that in the most
attractive deal makes u feel the need of market research.
Every company in order to give out best of their s
conducts the market research, which gives them answers
to the questions like;

• Who are my potential and regular customers?

• How can I serve them the best of me?
• How will I serve them best of the rest?
• What does the customer feel about my product?
• Am I offering him my services at the right time, in
right amount and at right place?
• Is the customer earning any profit of my deal?

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 • What kind of people are they?
• What do customers think of my business?
• Are my promotional programs working?
•

Advantages of market research

Switching on to e- business, net information will always

be of great help to my company. Regular updates of
data’s will end up in profits and solutions to my
problems.

• Market research directs and evaluates the market

information.
• It is a way to keep update of the information
• Increases the need of new market trends
• Lessees the business risk and of losses.
• Develops new outline to business plan
• Target audiences are meted out

Marketing Research Objectives

Marketing research objectives for my website are:

Underlying objective for my website lies in the need to

know my target users well, their interests and their
liking. A close view of their expenses and earnings
factors. Their buying power and what drives them to the
competitor’s products and their attraction. Finding out a
possible way out of this whole information for the
progress of my own company. Carrying out tests and

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possible positive experiments to affect and improve
customer and company relationships.

Data Sources

The research can be divided into 2 parts:

Primary marketing research - research that is meted out

for the company’s particular needs. By conditioning the
research into proper groups like that of targeted groups,
regular surveys, field work, regular interviews and keen
observation- you can definitely acquire information
about your target group. Specialization in the
investigation of the issues, getting regular feedbacks
about your websites and your product, assessing the
demand with the economy concept of match of demand
and supply need and last the experimentation with the
idea of introducing new product to the customer. This
research is much more time consuming and expensive.

Secondary marketing research –higher and much more

organized research with the facts derived from the
studies done previously either by the government
agencies, chamber of commerce, trade associations and
the other organizations. One can just glean information

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from the local libraries and the web search, but also the
book sand the articles published in newspaper.

Secondary research is less expensive in comparison of

primary research but it's not as accurate, or as useful, as
specific, customized research. But the former provides
much more specific results which are more accurate and
important for consideration when you are to launch a
mew product. Exhibitions, Publications, Newspapers, and
Magazines are some methods of secondary research.

Additional Information

Before considering surveys or field experiments, look at

currently held information: sales records, complaints,
receipts, and any other records that can show where
customers live and work, and how and what they buy.
One small business owner found that addresses on cash
receipts allowed him to pinpoint customers in his market
area.

Customers' addresses tell much about them. Lifestyles

and buying habits are often correlated with
neighborhoods.

Credit records are an excellent source of information,

giving information about customers' jobs, income levels,
and marital status. Offering credit is a multifaceted
marketing tool with well-known costs and risks.

Employees may be the best source of information about

customer likes and dislikes. They hear customers' minor
gripes about the store or service - the ones customers

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don't think important enough to take to the owner.
Employees are aware of the items customers request that
you do not stock. They can often supply good customer
profiles from their day-to-day contacts.

Market research methods and techniques

1. Qualitative Marketing Research –

It means “Quality” instilled in the research by the

means of the detailed talk be it formal in the form
of interview or just a informal talk with a deep
meted survey. Usually the target audiences are
considered and the allied people.

Qualitative methods are needed generally to define

problem, then there is generation of the hypothesis
and then to identify the determinants. This kind of
research is generally less expensive and reached out
fast as the respondent’s rate is low.

Direct approach is included in this research work

proper disclosure of the purpose of the study and
questions is done to the customers.

Quantitative Marketing Research

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 Statistical interpretation of the social research is
done in this kind of the research. Large masses of
people are contacted. Usually advertising agencies
help out in this purpose. This kind of research is
usually done for the matter to draw the conclusion.
It Includes surveys via omnibuses and it focuses on
Greater proximity to the research subject.

2. Primary marketing research

Research that is meted out for the company’s

particular needs. By conditioning the research into
proper groups like that of targeted groups, regular
surveys, field work, regular interviews and keen
observation- you can definitely acquire information
about your target group. Specialization in the
investigation of the issues, getting regular
feedbacks about your websites and your product,
assessing the demand with the economy concept of
match of demand and supply need and last the
experimentation with the idea of introducing new
product to the customer. This research is much
more time consuming and expensive.

Some methods of Primary Research are:

Postal survey

Low In cost
Poor response Rate
Incomplete Answers

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Telephone survey

Cost effective method

Difficult to ask sensitive questions
Works well with employers
Pre-Coded Responses

Face-to-face survey

Can Include Both Open Question & Pre-Coded

Expensive & Time Consuming
Ideal for gathering sensitive information
Ideal for exploring complicated issues
Can achieve robust sample allowing generalizations if
sufficient numbers are surveyed

Focus group

A group discussion with around 8-12 people

Usually lasts between 1 and 3 hours
Focuses on interaction between participants
Participants are not representative of wider population
Useful for gathering sensitive data
Requires careful analysis

3. Secondary marketing research

IT is the higher and much more organized research

with the facts derived from the studies done
previously either by the government agencies,
chamber of commerce, trade associations and the
other organizations. One can just glean

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 information from the local libraries and the web
search, but also the book sand the articles
published in newspaper.

Secondary research is less expensive in comparison

of primary research but it's not as accurate, or as
useful, as specific, customized research. But the
former provides much more specific results which
are more accurate and important for consideration
when you are to launch a mew product.

Some Methods of Secondary Research:

Newsgroups & Usenet

Generally the newspapers articles and the net keeps on

putting the facts and information which is widely used by
the potential users to serve out people in many ways. Facts
and data jot down on the net can be used as they are with
the extensive and depth search doe by the newspapers on
various endless topics. Saving the time, slashing down the
research cost and work effectively is the major mantra
governed by these methods of search.

Journals

Various industries gave out their weekly reports and

publish their journals giving a detail account of the major
happenings in their field. This serves as an inside outlook
need to the users. Only the smart person the use the
information in best suitable way.

Magazines

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Magazines through the ages have been a best source of
ideas and have always been a strong formulator of the
opinion. Elite section uses the information according to its
purpose. Be it of general crowd or for the professionals all
use them as best suited. All tits n bits of the reports,
detailed analysis, criticism and elucidate are given to their
best.

Company annual Reports

Company annual reports are best source of information

for making the conclusions, reports on the development
and research, are submitted .the companies all year
developments are drafted to their best. Margin of profits,
new appointments, launch of new products, and market
share of profit and year annual development could be
measured from the fact.

Library reference

And even if all these measures fall short for one report one
can always submit up to libraries. These through times
have been the best source of stored information. Given
proofs and all kind of outcomes are served there a report
made on these document is always worth drawing
attention. Done through good reference and best
knowledge give a perfect result.

For the aspect of the concluding, after the launch of the

website new and more and more customers will be added
to the new world from the different and far off sections of
the society. Sales percentage will definitely shot up
making it more reliable and users friendly. Moreover the
new turn over can find the products at great deals and at
valuable prices.

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For if our company widens it s spheres then there is
definitely the need for the company to go global.

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Implementation Strategies

Strategies have been made to enter the world of e-

commerce and it focuses on consumer requirements,
satisfaction, and services provided to them. And
according to plan EW’s major investment will be in web
development, acquiring stock & licensing and
promotional activities.

Also EW will try not being a cost leader and

Implement Efficient Financial System
. EW will introduce a reasonable charge structure and
also follow different strategies to achieve its goal.

And Market Research will decide that which strategy

EW have to adopt to implement and at which time.

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Target Market

Audience Category

Target Market involves the different type of consumers

who has to buy your product. EW segments our target
audience into various categories according to their
incomes, habits, age and many more. They are:

Consumer Classes
• Middle & upper

Age Group
• Kids, Teenagers, Adults

Habits
• Freaks, Net Savvy or Homesick

Consumer Classes

In these criteria we are talking about the classes of people

on the basis of their income or pockets. Basically there
are three types of classes but we only target two classes.
They are middle and upper class not lower as they can’t
afford our products and their medium on which they
played.

Upper Class

The major percentage of target customer will be from

rich background as most of them don’t have much time
to see movies at theatre, and most prefer to watch it again
& again so they will buy our product for sure.

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Middle Class

The percentage of customer is low as compared to upper

class as most of the middle class people prefer to buy
pirated Cds or to download from internet via P2P
Softwares as the rates of original DVDs are high as
comparison to pirated ones.

Age Groups

In this section we are talking about the likes of people on

the basis of their age groups. We divide this criterion into
three categories. They are kids, teenagers and Adults.

Teenager

The Percentage of this category is much higher as

compared to kids and senior citizens categories. This
category comprises age group from 12 to 21.

Kids

This category also comprises of great sales as they love to

watch animation movies and like to play games and lots
more. This category comprises age group from 5 to 12.

Adults

The percentage of this category is not as much higher

than others but it will do good as it comprises the age
group who are above 24 & includes senior citizens also
who like to watch movies at home.

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Habits

In this Section we are talking about the likes of people on

the basis of their habits. We divide this criterion into two
major categories. They are Freaks & Net Savvy or
homesick.

Freaks

The most important category of whole section as it

comprises of people who are passionate about all the stuff
we have in our gallery. So it comprises of great sales and
also it does have people from all age groups and
consumer classes.

Net Savvy or Homesick

This category comprises people who are net savvy and

like to watch movies in homes instead of going out to the
theatre.

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Audience Requirements

Upper Class

This category comprises of rich people who don’t have

much time to see movies at theatre, and most prefer to
watch it again & again so they will buy our product for
sure.
And also the children from these families who wanted to
buy all new DVDs, Cds, and ACDs, games DVDs
available in store. Also writable medium as they spend lot
of time to download stuff from net.

Middle Class

This category comprises of people who have 9 to 5 jobs

and family oriented. These people need special offers
because of high rates of original DVDs. This category is
also important as they don’t have enough time to go and
shop in the store so they can purchase our stuff from
online catalogue.

Teenagers

This category comprises of age group from 12 to 21. This

section has huge demand for every type of dvds as
teenager likes to play games on their play stations,
writable mediums to store stuff downloaded from net,
movies as they like to watch again and again on their
home theatre. People from this section also buy these
types of products because of status symbols basically for
show off.

Kids

This category comprises of age group from 5 to 12. this

section also has a great potential as kids like to watch

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their favorite cartoon characters again and again and
their and also to play games such as Mario, car racing
and other computer games. Basically people from this
section has requirement of computer games and
animation movies DVDs.

Adults

This category comprises the age group who are above 24.
This section also includes senior citizens who like to
watch old classics while sitting & relaxing at home.
Basically this section has a demand from movies section
as most of them have families.

Freaks

The most important category of whole section as it

comprises of people who are passionate about all the stuff
we have in our gallery. So it comprises of great sales and
also it does have people from all age groups and
consumer classes.

Net Savvy or Home sick

This category comprises people who are net savvy and

like to watch movies in homes instead of going out to the
theatre.

Geographic locations

Generally EW will target Metropolitans but we are also

planning to target the people who are from urban cities
like Surat because cities like Surat don’t have any movie
library or shop from where they can buy and watch the
movies etc.

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But in India still there are a huge percentage of people
who doesn’t have any idea about online trading and also
there are people who are afraid to do online trading
that’s why EW is planning to business in metropolitans
instead of urban cities firstly.

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Competition

The businesses also have tough competition from various

companies who already established their business and
have strong roots in the market such companies are E-
bay, Amazon, indiacdhub.com, cdzone.com,
store.indiatimes.com and many more so it is difficult to
establish a business but nothing is impossible. The biggest
competitors are ebay and Amazon because they are doing
business for few years and also they have good reputation
in the market. Also Piracy may prove to be a biggest
hurdle as mostly people prefer downloading movies from
the internet via P2P software which can causes losses in
this business.

Ebay is an American Internet company that manages

ebay.com. It is an online auction and shopping website
where people and businesses buy and sell goods and
services worldwide. eBay generates revenue from a
number of fees. There are fees to list a product and fees
when the product sells, plus several optional fees, all
based on various factors and scales. The U.S.-based
ebay.com takes $0.20 to $80 per listing and 5.25% or less
of the final price (as of 2007). The UK based ebay.co.uk
(ebay.co.uk offices) takes from GBP £0.15 to a maximum
rate of GBP £3 per 100 for an ordinary listing and from
0.75% to 5.25% of the final price. In addition, eBay now
owns the PayPal payment system which has fees of its
own.

Amazon is an American e-commerce company and one of

the first major companies to sell goods over the Internet
and was one of the iconic stocks of the late 1990s. The net
income was $35.3 million in 2003, $588.5 million in 2004,

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$359 million in 2005, and $190 million in 2006 (including
a $662 million charge on R&D in 2006).

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Key Personnel

Along with Director, Manager, IIT Caretaker, & sales

Assembler, EW will have 10 to 15 employees. Some these
employees will work as a graphic designer or web
designer and some of them will work on the
programming and site maintenance and some them will
work at warehouse and some these work as a
management team or handle accounts. Some of the work
of main employees has been mentioned below:

Director/ Manager: Marketing, Procurement

management, supply delivers
Overall management, Forum
reply

IIT Caretaker: Website maintenance & updating,

computer assembling
Intranet management, tech forum

Sales Assembler: Sales record manager, computer

assembling & forum
Reply

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Organizational Structure

Chairman

Sales
Director IIT Caretaker
Assembler

Marketing Sales
Designers
Manager Manager

Accounts Warehouse
Programmers
Manager Unit

R&D Maintenance
Department Staff

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Online Problems

The possible difficulties that a company could face while

starting an e-commerce business .a license or contract to
use a web-site can involve representations, warranties,
choice of law, venue, copyright and trademark issues.
Any site use license governs the use of the site with a
privacy agreement and an agreement governing the sale
itself. It can be broadly categorized into are of 2 types.
They are enlisted are below:

Legal Concern

Some issues that needs to be taken into consideration

while launching a website may be:-

Security regulation

A company can be guilty of copyright infringement,

breaching the privileges of the security reasons if they
violate any of the rights given to copyright owners under
the copyright act. These rights include

Right to prevent others from copying a work

Publicly displaying a work
Distributing a work

And so a company can be charged for the breach of the

law if they just try to copy or modify the work .get into
the illegal distribution of the companies work publicly.
bringing the antitrust to the company performance and
the reliability.

Content regulation

The companies have to safeguard their content and the

products from being misused by the net crooker. The

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content may include the laws, accounts etc. further the
companies are inhibited to use derogatory marks and are
advised not to indulge in the malpractices. Further the
acts of censorship can also imposed on them.

Trademark Concern

This is an act of falsification where another companies

uses the mark of some reputed company so as to create
confusion or bring likelihood of the product with that of
the real. under the legal aides, In India, only trademarks
that have been registered are entitled to protection under
the trademark act, all other marks including service
marks etc are only protected under the common law.
Registered trademarks carry the sign “®” whereas
unregistered trademarks may carry “™”. Patent Act of
1972 came into enforce in India where according to this
act a company has to register itself and all its
manufacturing products with the government to save it
from the copying by the others company. If the latter
produces or copies the same registered product then it
shall have pay to the actual manufacturing company.

Defamation

False charges made against someone or against some

organization thus hampering its growth and damaging its
reputation. So, for proving a statement to be defamatory,
that statement must be published to a third party and the
person publishing the statement must have known that
the statement was false. So, the company must be a lot
careful to avoid defaming someone in their pages. The
company can sue the former company for making such
illegal charges. As it might just bring down the
companies performance.

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Terms & Conditions

Giving out a frame of terms and condition which needs to

be set up for a website to function makes it easy for the
clients to works. if there is any infringement of the law’s
then the company can take an immediate action against
the user.

Framing

If a company uses farming to link other websites then it

might lead to breach of the copyright and trademark
acts. Permissions and the careful checks need to be made
for using the framing.

Meta tags

These are used by search engines to find information.

Crooks might produce false Meta tags for the search
engine causing for that site to open even before the
company site leaving the client into a false notion. Often
fraudulent orders are placed leaving the company in
losses. Certain measures need to be installed in the
procedure to save the company from the harm.

Legally there are many ways the hackers can be punished

but still expressing the need to be on the safer side certain
measures needs to be adopted to check the frauds.

38
Security Concern

It becomes a duty of the company to implement its

security measures strongly so as to protect the
confidentiality and ensure its work authentication. It is
also necessary for the company to ensure the safety of the
both hardware and the software. Here by let’s discuss
them one by one:

Hacking

Hacking, today is posing a serious threat to all major

online companies and firms. As in they do:

Gaining access to precarious or valuable data

Alteration of your website which may result into
damaging your reputation
Gaining access to financial information and thus making
changes into your online accounts.
Using viruses to corrupt useful data thus slashing down
the performance rates.

System Security

It is important that your system is needed to be secure so

as to reduce the risk of the hackers to break into your
system and change the performance of your work.

Information Security

For a company to perform well it needs to safeguard its

delicate and effective information under the best security
provisions. Information like that of clients detail,
personal details, companies actions and plans, credits etc.
needs a constant supervision.

Software Security

39
System Software should be kept current with security
patches and updates. Best way is to offer passwords to
your soft wares and accounts.

Hardware Security

Modernization of the hardware is what is needed to

prevent the loss of the data and it can only be done
regular use of the new hardware and using good quality
material.
Proper Solutions

For ensuring that, there should be a hassle free

environment the company might just carry out the best
legal deeds it can. the best possible solution can be to just
go for the very basic- registered copyrights and the
trademarks in the starting itself so that it does not gives
any ground for follies and mistakes. Patent idea is also
versatile.

Incorporation is the new idea that has emerged as in for

this purpose .But one must keep a check while instilling
all these ideas so as to make sure that your work or your
site does not breaks any regulations by indulging into the
work of cheating and giving space to crimes like
plagiarism.

A Certification Authority (CA) is a trusted third party

that provides independent verification of the link between
the public key and the signer's true identity. This reduces
fraudulent representations. Further there is an example
for the digital encryption,. Microsoft® BizTalk Server
supports digital encryption and security. This server
facilitates the interchange of business documents among
various platforms and operating systems regardless of the
application being used to process a business document.
By providing a standard gateway for sending and

40
 receiving documents via the Internet, BizTalk™ allows
companies to interchange documents with external
trading partners.

Since security is an integral part of any business where

there is a need to ensure the safeguard of personal as well
as that of public information. There arises a need of strict
need for safety measures. Further the company can opt
for the different antivirus packages. an ideal way for this
can be the open chat forums and blogs along with the
FAQ provided for the customers so as to keep them in
interaction with the executive. Security can be updated
by:

• Digital signatures and wallets etc. as they are

authenticated. Unforged, unaltered and non-reusable.
• Strong security policies and rigorous up gradation of
the schematic operating system
• Multiple security points for data access and a filter
for the information
• Educating the staff is the prime concern and the need
for secure internet use

Advertising & Promotional Activities

Promotion is the most mandatory objective because

means of advertising attracts more and more customers,
which lead to profit. Because of online presence only most
of the promotion will be done through the means of
Internet technology such as Banner ads, pop-ups
sponsored links, mails and search engines etc.
Newspapers, magazines, pamphlets, and business cards
are the means of advertising which will attracts
customers who aren’t net savvy or use net for only special
purposes like gathering information.

41
Internet Based

An Internet bases promotion is a useful method for

getting to target the youth as well as a large audience who
merely come online to check e-mails. The Internet gives
you a larger variety of methods to target audiences. They
are:

Websites:

The company can promote his product through his

website as it wants to limit the business online only. It
should be advertised online via different websites, which
are often visited by the people so as more as people come
to know about it and it will create more customers.

Banner Ads

Putting ads on sites frequently visited by the people and

are much in demands. It grabs the attention very fast and
also cost effective than the media advertisements.

POP-UPS

Pop-ups are windows that open with various websites for

advertising purposes. You have to pay websites to show
these pop-ups. But because of certain technical
advancements pop-ups can be blocked, proving to be a
waste of money.

Online Communities and Blogs

Online communities and Blogs are generally free of cost

and attract a lot of youth. You can read their comments/
suggestions, which will help you strengthen your
marketing approach.

42
Emails

To promote the product in an excessive manner it can be

advertised through Emails. A nice, attractive offer should
be made and can be sent to the people who had the
potential and willingness to buy the product.

Newsgroups

There are many newsgroups on the Internet, which

provides us the information on every field or matter. So,
the product information can be uploaded on these
newsgroups so the interested people can contact you on
knowing about your product.

43
Non-Internet Based

Print Ads

Print ads vary from newspapers, magazines, hoardings,

pamphlets, etc and are a very effective method of
targeting consumers. Youth read magazines, everyone
reads newspapers and if the advertisement is eye-
catching you have more of a chance to target the
consumer. This method is also very cost effective but still
useful.

Television Ads

More than 80% of the population owns a TV set, so if you

broadcast the ad during popular programs or sports and
the advertisement is made in a rationale way then you
have more of a chance to get the consumer in the
showroom buying your product. TV ads are a powerful
and a persuasive medium. A clever ad can change the
people’s mindset towards your product. Another benefit
is that little effort is required by the target audience to
view the advert, as your ad is presented to them sitting at
home.

Radio

There are 2 ways through which you can reach the

audience through the Radio, i.e. national radio (AIR in
India) plus you can target local audience through local
channels e.g. Radio Mirchi is broadcasted in the main
metropolitans of India. Again listeners do not have to
make to much effort to gain knowledge about your
product. This is cost effective plus you have more of a
chance to have more listeners, as people tend to listen to
radio broadcasts while driving, through day schedules

44
and even at night for recreation. People tend to surf
through channels on the television but do not change too
many channels on the radio.

Cinemas

Advertisements are shown before the movie and through

the interval. If your target audience is between the age
group of 15-40, this is an effective yet costly method.

45
 Finance

SET UP COSTS

Expenditure Cost in Rupees

Development of Website 30,00
Electronic Equipment (Computers etc.) 2,00,000
Office Development (furniture, set up etc) 80000
Initial Marketing 60,000
Warehousing 40,000
Initial Stock 5,80,000
Legal and other Consulting Charges 20,000
Other Contingences 10,000
Total Financial Requirement 10,00,000

MEANS OF FINANCE

Means Cost in Rupees

Equity 0
Loan (or any other) 5,00,000
Total 5,00,000

Expected number of Purchase

Type of Product

I Year II Year III Year

Dvds 1500 2200 3000
Vcds 2000 2700 3500
Others 600 1100 1500

PROFIT AND LOSS A/C OF THE YEAR 2012-2013

46
 Year I
Net Sales 11,50,000

Less: Purchases 5,80,000

Wages 1,20,000
Warehouse 40,000

Gross Profit 4,10,000

Less: Operating Expenses

Salary 1,40,000
Stationary 7,000
Electricity Bills 12000
Telephone Bills 10,000
Website Development 30,000
Website Maintenance 8,500
Advertising 60,000
Other contingencies 10,000
Legal Charges 20,000
Depreciation: Furniture 7,500
Electronics 20,000
Total Operating Expenses 3,25,000

Net Profit Before Tax 85,000

Less: Income Tax (35.875%) 30,494

Net Profit After Tax 54,506

BALANCESHEET OF THE YEAR 2012-2013

47
LIABILITIES AMOUNT
AMOUNT ASSETS
Equity 0 Land 0
Profit and Loss Account 54,506 Add: Appreciation 0
Electronics 20,000
Less: Depreciation 2000
18000
Furniture 7500
Less: Depreciation 750
6750

Cash 29,756

Debtors 0
Total 54,506 Total 55,506

48
PROFIT AND LOSS A/C OF THE YEAR 2013-2014

49
 Year II
Net Sales 14,00,000

Less: Purchases 7,40,000

Wages 1,20,000
Warehouse 40,000

Gross Profit 5,00,000

Less: Operating Expenses

Salary 1,40,000
Stationary 7,000
Electricity Bills 12,000
Telephone Bills 10,000
Website Development 0
Website Maintenance 8,500
Advertising 60,000
Other contingencies 0
Legal Charges 4,000
Depreciation: Furniture 6,500
Electronics 17,000
Total Operating Expenses 2,65,000

Net Profit Before Tax 2,35,000

Less: Income Tax (35.875%) 84,306

Net Profit After Tax 1,50,694

BALANCESHEET OF THE YEAR 2013-2014

50
LIABILITIES AMOUNT
AMOUNT ASSETS
Equity 0 Land 0
Profit and Loss Account 1,50,694 Add: Appreciation
Electronics 17000
Less: Depreciation 1700
15300
Furniture 6500
Less: Depreciation 650
6750

Cash 1,28,644

Debtors
Total 1,50,694 Total 1,50,694

PROFIT AND LOSS A/C OF THE YEAR 2014-2015

51
 Year III
Net Sales 16,00,000

Less: Purchases 8,50,000

Wages 1,20,000
Warehouse 40,000

Gross Profit 5,90,000

Less: Operating Expenses

Salary 1,80,000
Stationary 8,000
Electricity Bills 12,000
Telephone Bills 10,000
Website Development 0
Website Maintenance 7,500
Advertising 85,000
Other contingencies 0
Legal Charges 8,000
Depreciation: Furniture 6,000
Electronics 15,000
Total Operating Expenses 3,31,500

Net Profit Before Tax 2,58,500

Less: Income Tax (35.875%) 92,557

Net Profit After Tax 1,65,943

BALANCESHEET OF THE YEAR 2014-2015

52
LIABILITIES AMOUNT
AMOUNT ASSETS
Equity 0 Land 0
Profit and Loss Account 1,65,943 Add: Appreciation
Electronics 15,000
Less: Depreciation 1500
13500
Furniture 6,000
Less: Depreciation 600
5400

Cash 1,47,043

Debtors
Total 1,65,943 Total 1,65,943

53
 REVENUE

EXPECTED REVENUE FOR THE NEXT THREE YEARS

MONTHLY REVENUE EXPECTED IN RUPEES FOR YEAR 2012 – 2015

Year I

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

PRODUCT
SALES 25,000 35,000 50,000 60,000 85,000 75,000 90,000 1,00,000 1,30,000 1,70,000 1,60,000 1,70,000
OTHER
MEANS

TOTAL 25,000 35,000 50,000 60,000 85,000 75,000 90,000 1,00,000 1,30,000 1,70,000 1,60,000 1,70,000

54
 FOR YEAR 2013-2014

QUARTERLY REVENUE EXPECTED IN RUPEES FOR YEAR 2009-2010

Year II

REVENUE I II III IV
QUARTER QUARTER QUARTER QUARTER

PRODUCT SALES 2,50,000 3,30,000 3,90,000 4,30,000

TOTAL REVENUE 2,50,000 3,30,000 3,90,000 4,30,000

55
 FOR YEAR 2014-2015

QUARTERLY REVENUE EXPECTED IN RUPEES FOR YEAR 2010-2011

Year III

REVENUE I II III IV
QUARTER QUARTER QUARTER QUARTER

PRODUCT SALES 2,80,000 3,70,000 4,50,000 5,00,000

TOTAL REVENUE 2,80,000 3,70,000 4,50,000 5,00,000

56
 EXPENDITURE

I Year: 2012-2013

QUARTELY EXPENDITURE EXPECTED IN RUPEES IN YEAR 2008 -

2009
Year I
EXPENDITURE I II III IV
QUARTER QUARTER QUARTER QUARTER

PRODUCT
PURCHASE 70,000 1,20,000 1,60,000 2,30,000

ADVERTISING
15,000 15,000 15,000 15,000

TELEPHONE
2,000 2,000 2,700 3,300

SALARY 30,000 30,000 40,000 40,000

WEBSITE
MAINTENANCE 3,000 1,500 2,000 2,000

WEBSITE
DEVEPLOPMENT 15,000 5,000 5,000 5,000

STATIONARY
2,500 1,200 1,300 2,000

TRANSPORTATION
0 0 0 0

ELECTRICITY
3,000 3,000 3,000 3,000
OTHER 2,500 2,500 2,500 2,500

57
CONTIGENCIES
TOTAL
EXPENDITURE 1,43,000 1,80,200 2,31,500 3,04,700

II Year: 2013-2014

QUARTELY EXPENDITURE EXPECTED IN RUPEES IN YEAR 2009 -

2010
Year II

EXPENDITURE I II III IV
QUARTER QUARTER QUARTER QUARTER

PRODUCT
PURCHASE 1,30,000 1,60,000 2,00,000 2,50,000

ADVERTISING
15,000 15,000 15,000 15,000

TELEPHONE
2,000 2,000 2,700 3,300

SALARY 30,000 30,000 40,000 40,000

WEBSITE
MAINTENANCE
3,000 1,500 2,000 2,000

STATIONARY
2,500 1,200 1,300 2,000

TRANSPORTATION
0 0 0 0

ELECTRICITY
3,000 3,000 3,000 3,000

58
TOTAL
EXPENDITURE 1,85,500 2,12,700 2,64,000 3,15,300

59
 III Year: 2014-2015

QUARTELY EXPENDITURE EXPECTED IN RUPEES IN YEAR 2008 –

2009
Year III
EXPENDITURE I II III IV
QUARTER QUARTER QUARTER QUARTER

PRODUCT
PURCHASE 1,50,000 1,90,000 2,40,000 2,70,000

ADVERTISING
20,000 20,000 22,000 23,000

TELEPHONE
2,000 2,000 2,700 3,300

SALARY 40,000 40,000 50,000 50,000

WEBSITE
MAINTENANCE
2,700 1,300 1,600 1,900

STATIONARY
2,500 1,600 1,500 2,400

TRANSPORTATION
0 0 0 0

ELECTRICITY 3,000 3,000 3,000 3,000

TOTAL
EXPENDITURE 2,20,200 2,57,900 3,20,800 3,53,600

60
 BREAK-EVEN ANALYSIS

Break Even Analysis refers to the calculation to determine

how much product a company must sell in order to break
even on that product. It is an effective analysis to measure
the impact of different marketing decisions. It can focus on
the product, or incremental changes to the product to
determine the potential outcomes of marketing tactics. The
formula for a break-even analysis is:

Break-even point ($) = (Total Fixed Costs + Total Variable

Costs).
Total Variable Costs = Variable cost per unit x units sold
Unit contribution (contribution margin) = Price per unit -
Variable cost per unit.

Break-even 2012-2013 2013-2014 2014-2015

analysis

NET PROFIT 54,506 1,50,694 1,65,943

(on sales)

61
FINANCIAL ASSUMPTIONS

• Loan of Rs 5,00,000 has been taken at the interest rate

of 11.5%. The repayment of the loan is within a period
of “4” years. The first quarterly installment starting at
the beginning of 2nd year.

• Depreciation of assets has been considered at 10% p.a.

• The income tax has been considered at the rate of

35.875%.

62
Hardware And Software Requirements

These are the basic requirements of hardware and

software resources to build good and impressive looking
website.

Hardware

Computer

It is obvious that we need a computer to create a website.

It is mandatory part to create a website. Without any
workstation you can’t able to make site. So EW have 5
Computers/terminals to take access and maintain
website. To build a professional or impressive looking
website Computer must have these requirements:

Processor: Intel Pentium

4 or above
Random Access Memory (RAM): 384 Mb
up to 1 GB
Primary Memory (HDD): Depends on the
website
Chipset: Intel 915GV
expresses chipset
Secondary Storage: Combo drives
or DVD Writer
Graphics Card: 64 MB
(Optional)
Operating System: Windows XP
or above

Application Server

A computer that handles all operations between a

63
company’s back-end applications or databases and the
users’ computers’ Web browsers.

Transmission control protocol/Internet protocol

(TCP/IP)

The most common Internet communication protocol. The

higher layer, TCP (transmission control protocol),
assembles files into smaller packets that are transmitted
over the Internet and received by another TCP layer that
reassembles them. The lower network layer, (IP) Internet
protocol, handles the address part of each packet so that
it gets to the right destination.

Transaction Processing Monitor

A TP Monitor is a subsystem that groups together sets of

related database updates and submits them together to a
relational database. The result is that the database server
does not need to do all of the work of managing the
consistency/correctness of the database; the TP Monitor
makes sure that groups of updates take place together or
not at all.

64
Softwares

Several Years ago, all that required developing or

building web pages was web browser software and a
simple text editor but now days there are an abundance
of software packages available, which allow individuals
with no or little HTML knowledge, to build impressive
looking sites. They are:

Macromedia Dream weaver MX

Dream weaver provides the productivity of a visual

Web page layout tool, the control of an HTML text
editor, and support for Dynamic HTML in one
professional, easy-to-use package. It also allows you to
easily add pieces of HTML and JavaScript code.

Macromedia Flash

Flash is an animation and a drawing package rolled

into one. Flash comes with its own scripting language
called action script, which allows the developer the
ability to create complex interactive movies and
animations

Adobe Photo Shop

Adobe Photoshop is a graphics editor developed and

published by Adobe Systems. It provides a
comprehensive toolset and powerful creative options
which helps to create professional-quality images.

Adobe Acrobat

65
 Acrobat is a program that lets you capture a
document and then view it in its original format and
appearance. Acrobat is ideal for making documents
that were designed for the printing and being shared
with others on the Internet.

Ms Access

Easily create databases and their objects, such as

tables, queries, forms, and reports by using the Access
Database Wizard. Access helps us to create our
product list table, which can be easily accessible to
user by using ASP language.

Web Languages

Html

Hypertext Markup Language (HTML) is a markup

language designed for the creation of web pages with
hypertext and other information to be displayed in a web
browser. HTML is used to structure information —
denoting certain text as headings, paragraphs, lists and so
on — and can be used to describe, to some degree, the
appearance and semantics of a document. HTML's
grammar structure is the HTML DTD that was created
using SGML syntax.

ASP

Active Server Pages (ASP) is Microsoft's server-side

technology for dynamically-generated web pages that is
marketed as an add-on to Internet Information Services
(IIS). Programming ASP websites is made easier by
various built-in objects .Each object corresponds to a

66
group of frequently-used functionality useful for creating
dynamic web pages. In ASP 3.0 there are six such built-in
objects: Application, ASP Error, Request, Response,
Server and Session

67
Security

There are several ways to secure the files on server. They

are:

IP Address Restrictions

You can either ban or allow IPs to access the FTP server.
You can use a limited set of regular expressions to specify
the allowed/banned IPs to specify the allowed/banned
IPs. The IP restrictor component name is ip-restrictor.
And then only predefined IPS can access your site

Authentication

Authentication is any process by which you verify that

someone is who they claim they are. This usually involves
a username and a password, but can include any other
method of demonstrating identity, such as a smart card.
Authentication is equivalent to showing your drivers
license at the ticket counter at the airport.

Secure Socket Layer (SSL)

The SSL protocol was developed to ensure security of

data transported and routed through HTTP or POP3
application layers. SSL is designed to make use of TCP as
a communication layer to provide a reliable end-to-end
secure and authenticated connection between the service
client and the server

Access control

Access control IT is a much more general way of

controlling access to a web resource. Access can be

68
granted or denied based on a wide variety of criteria,
such as the network address of the client, the time of day
or the browser, which the visitor is using. It’s a
controlling entrance by some arbitrary condition, which
may or may not have anything to do with the attributes of
the particular visitor.

File Attribution

You can also use various attributes properties of files

such Read-Only and Hidden. By these two properties
except admin no one can modify or delete the files
present on server.

Also company will maintain the database, which contains

all the customer information secured by password
facility, and only administrators have rights to access the
database.

Also Company will store a copy of a company data so it

can be recovered immediately after crash down of
computers or data. These are the following data which
company will store as a backup:

Company accounts
Product Database
Customer Information
Financial records
Employee’s personal accounts
Inventory system
Transactions records

69
Appendix: A
Questionnaire

Name:

Age:

Gender:

Would you prefer buying products online?

Yes No
Why,

_________________________________________________
________

Have you purchased anything on the Internet?

Yes No
Why,

_________________________________________________
________

What points make you visit a website regularly?

_________________________________________________
________

Would you prefer?

Online payment Cash on
delivery
Why,

70
_________________________________________________
________

Would you like to receive updates from our website?

Yes No
Why,

_________________________________________________
________

E-mail: _________________________________________

71
Conclusion

The aim of this business plan was to promote EW

products. EW has a bright future in the Indian market as
the people here want good entertainment media but at
reasonable prices. Entertainment World provides such a
combination of efficient services and affordable prices
and also all brands together.

The various internal and external factors suggest that

there is scope for expansion not only in India but abroad
also. There are different services provided to people who
have different needs. These services are acceptable by all
types of business environments like social, political,
technical, etc. As every company has its weakness, it can
be dealt intelligently.

Also E-marketing of EW Products will help in promoting

and advertising products to the worldwide users of
Internet.

72
 References

http://www.learnthat.com/define/view.asp? Id=280

Cost Management - by Don R. Hansen, Maryanne M.

Mowen

Management.about.com/cs/adminaccounting.htm

73