Creating opportunities in service

space in India with technology as

the main driver for Start-up firms.
Sec A Group 4
Akriti Gupta

B13006

Bhamidipaty Vishalatha

B13018

Punit Gupta

B13042

Ramaswamy Venkatarajan

B13045

Sarthak Mohanty

B13050

Sweta Dantuluri

B13057

Factors for business attractiveness / VC

framework
Market Potential: Need to see what the size and purchasing power of the target group for the
solution that is intended to be provided. Also, it is desirable that the TG and its purchasing
power is expected to grow for sustained growth of business

Top Management Skills: Ideally the top management / founding members should have
complementary skills. This helps in specialization of work and efficient division of supervision
and labor
Threat of substitutes/competition: Should ideally be low. Even if competitive threat is high, the
nature of service should be such that it enjoys a high first movers advantage
Barriers to entry and exit: Entry barriers could be in the form of capital requirement, lack of
required technology knowledge, government regulations etc. Also, exit barriers need to be low
to facilitate easy exit from business in case of unprecedented developments such as recession
Scalability: The business should be easily scalable both in terms of scale and scope. This is
important to reap the benefits of both economies of scale and scope and also to pre-empt and
tackle any competitive threat/response

Hobby in a Box
The creative Do-It-Yourself Store

What problems are we solving?

The creative crafts aspirant faces multiple problems in acquiring the
necessary resources and using them effectively
Every person aspires to be
creative

Faces difficulty in gathering

resources
Procurement of resources from multiple
suppliers
Procurement of resources in individual
units at low cost
Lack of surety about quality

Does not know how to use

them effectively
Expensive Hobby Classes
Requires assistance in using the
resources to make aesthetically appealing
products

How we are solving the problems?

SOLUTION : Hobby in a Box provides a

USP: We ENABLE consumers to DESIGN and make

one stop solution for gathering resources

and making elegant DIY products

creative products that they can FLAUNT !

1.As Fashion changes with time, so do our Projects.

Assurance
of quality
Single
destination
for
resources

Easy
Guidance
for do-ityourself

2.We design product ideas in

School crafts
Home dcor
Utility items
Fashion accessories
Jewelry
Folk art
Healing crafts
And more..

DIY INDUSTRY - What is the market Size ?

Estimated Market size
Estimated Segment Size (no.) : 30,00,000 people (facebook.com)
Estimated Segment Size (value) : Rs 96 crores, CAGR 18%
Target customers
Internet users in urban areas
mostly females between 6 60 years
Aspires to be creative

Current players and competitors

Unorganized local wholesalers
Paints and ceramics : Fevicryl
Hobby classes and DIY workshops

Entry/ Exit barriers

Low entry and exit barriers
Flexibility in business in 1st phase

Market challenges
Market development is required
Supply chain and logistics streamlining

Technology and Team structure

Team structure
Website
(Kartrocket)
Analytics

Logistics
payment

Facebook
Website

(Shiprocket)

E mail
Marketing
campaigns

Mailchimp,
zohomail

INTEGRATED
ONLINE
MARKETING

SEO

Social media
Youtube,
Facebook

Affiliate
marketing
(blogs)

Member 1 : DIY enthusiast, has

experience of participating flea
fairs and craft classes , good
networking skills , good at
research on DIY

Twitter ,Blogs

Member 2 : art enthusiast ,good

at content writeup , photography ,
designing campaigns , good at
designing products
Member 3 : technology enthusiast
, experience analytics in e
commerce , good at leveraging
technology

Scaling Up
In the long term, we aim to become a brand for anything related to do-ityourself hobby crafts
PHASE 1

PHASE 2

PHASE 3

CHANNELS

B2C (e- commerce)

B2C (e- commerce)

B2B
B2C (e- commerce)

MARKETING

Partnership with corporate

Online - Giveaway Contests
YouTube Chanel

Online Facebook Ads

Online Google Ad
words

Traditional Media Online and Offline

Referrals

PRODUCTS

Curated kits

Curated kits
Supplies

Curated kits
Supplies
In-house supplies

TECHNOLOGY

DIY Website

In house Website
Data Analytics

In-house technology
solutions

MODEL

Inventory based

Subscription Model
Controlled Marketplace

Hybrid Model
Birchbox/Glossybox
model

FOCUS

EXPERIMENTING

GROWING FAST,
BUILDING A BRAND

EXPANDING THE BRAND

Other Business Ideas (1/2)

Online handicrafts:
Sell handicrafts on e-retail sites customized to the clients focus on crafts that are faster to
make, are smaller in size, are innovative in design and usage and cost lesser
The idea is to provide employment and higher return to artisans by addressing gaps in
procuring quality materials, creating new designs, enabling proper marketing channels and
providing business training to craftsmen and collaborate with the vocational training institutes

Issues:
Market is developing and price wars have started
Established players like Craftszilla have well developed supply chain network
Scalability is an issue since handicrafts cannot be produced in bulk quickly

Craftsmen are spread all over the country and sourcing is difficult

Other Business Ideas (2/2)

Environment for engaging young people with the elderly:
Idea is to form a database of senior citizens in hospitals and old age homes who have copious
time on their hand but no one share it with. Using data about willing young adults, a matching
algorithm can be used to set up meeting of people with common interests at a time convenient
to both parties involved
Revenue streams can come from corporates involved in CSR activities and who wish to register
their employees for their Employee Development Program. Hospitals availing of this service will
get bulk discounts and ads on our online portal / pamphlets will generate additional revenues

Issues:
Sustained market potential can be an issue since we cannot be sure of the number of youngster
who will be willing to participate in the activity
CSR investment is not a uniform source of revenue
Local environment is crucial to identify and match people with common interests and hence
scalability is a major concern for the venture

Thank You

Financials and Funding

Our breakeven would be at 500 boxes; we would require
funding of Rs. 60 Lacs for next stage of operations
Starting Capital: Rs. 5 lacs (1000 boxes)
Price of Box: Rs. 499 Rs. 1499
Break Even: approx. 500 boxes at full price
1000 boxes at 50% discount price
Other Costs:
Technology/Logistics: 3rd party outsourcing
Operational costs: sorting, assimilating, packaging
Location: rental for warehouse/ ideapad
CAC for Returning customer:
Ph. 1

Ph. 2

Ph. 3

Rs. 1500

Rs. 1000

Rs. 750

According to e-commerce industry standards

Funding Required: 5 lacs, 60 lacs, 300 lacs