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Report on establishing a retail outlet

Report on establishing a retail outlet

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PROJECT REPORT

GROUP LEADER: Mehreen Raza (06-419)

GROUP MEMBERS: Qurat-ul-ain Riaz (06-146) Sidra Tanveer (06-228) Najma Javed (06-013) Bilal Hanif (06-267) Zubair Khalid (06-223)

SUBMITTED TO: Mr. Muhammad Amir Adam SUBMITTED ON: 11th November 2008

~Table Of Contents~

Vision …………………………………………………………………………… 1 Our Values ………………………………………………………………………. 2 Situation Analysis ……………………………………………………………...... 3 Products Financing Marketing ………………………………………………………………………. 5 ……………………………………………………………………… 6 ……………………………………………………………………… ………………………………………………………………. 7 8 9

Human Resource

Retail Outlet …………………………………………………………………….

Expansion ………………………………………………………………………. 11 Income Statement (Profitability) ………………………………………………… 12 Lessons Learned ……………………………………………………………….. 13

~VISION~

The vision of sage was to provide friendly experience to the customers and to provide fast service and best quality that creates long term & healthy relationship with them.

~MISSION STATEMENT~

Stay ahead by introducing innovative products that creates a profitable outlet with a friendly atmosphere, good food, and excellent service where people truly enjoy coming.

~OUR VALUES~

• • • • •

Do What is Right Excellence in Performance Commitment in Objectives Teamwork Quality: We are dedicated to continuous improvement in the quality of every product we make and in every activity we perform. Consumers: Our reason for being is to understand, anticipate, and best fulfill our consumers’ needs.

~SITUATION ANALYSIS~
Target Market: Our target market was: • • • Students/teachers of City campus, Students visiting from Main campus, Or any other outsider.

Following are the attributes of our target market: Price sensitive: Costs are soaring high nowadays, hence, a high percentage of the market being students, price plays a vital role in defining the characteristics of the market. With limited funds, the students are restricted. Convenience seeker: due to busy schedule of the students they prefer to buy food from the nearest shop. This attribute works in line with price sensitivity. Since, a major part of our targeted market is student based, it is naturally expected on the students’ part that they’ll get their money’s worth. Good quality: ‘If it’s good, it’ll sell.’ With that being the general idea behind our products, we aimed at providing the best quality of food which would kept the customers satisfied, both on the price front as well as quality. Cleanliness: even though the students are price sensitive they want good quality food and are conscious about hygiene.

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Competitors: We analyzed our competitors and studied them and they products they were offering to the same target market and following were our findings: They were offering snacks, bakery items, drinks, and biryani, dunkin donuts, Cadbury chocolates. Since few of the products were a bit expensive so majority of the students couldn’t afford them for example Cadbury chocolates and dunkin donuts. The items that were in demand include biryani, bakery items, drinks & snacks.

Customer Research: Objective: to understand the needs of our customers better and what they wanted so that we could deliver the same and satisfy them. Sample: Random sampling. Sample Size: 30 (5 in each group)

Methodology: Through conversations with a variety of groups of students, we found that their foremost priority was hygiene, and good quality. With a general comparison made to our University cafeteria, the students showed a strong inclination towards

having variety in food products. Hence, we made it our responsibility to provide to our customers the necessary level of hygiene, quality and variety. The students suggested the following products: Gol gapay Lassi Haleem.

~PRODUCTS~
Product Category: After thorough study of the customers, competitors and our personal abilities we selected the following items:  Eatables: Gol Gapay Biryani Haleem Bakery Items (Pizza, Shwarma Roll, Club Sandwiches, Burger & Fried Roll) Drinks (Pakola, Pepsi, Nestle Juices & Lassi) Snacks (Lays, Kurleez, Cocomo, Choc. Chip, Waffers & Butterpuff)

 Entertainment: 3M products (Privacy filter, Lens cleaner & Diaries) Lucky Draw (free plate of Gol Gapay) Nominations (Kool Dude & Beauty)

Product Presentation: Our products had been presented in the following manner: Bakery Items: they were neatly displayed in trays and other dishes. Drinks: they were kept in the fridge. Biryani & Haleem: they were displayed along with the other bakery items in their packing. Ice cream: they were in the freezer. 3M Products: they were displayed on a separate table to catch the attention of the customers.

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Lottery & Nominations: were placed next to the sound system as additional entertainment items.

~FINANCING~
Pre-business: Sources of Funds: In order to get the business started we had to arrange the money for investment. Following were the two sources through which we started our business:  Own self: project. all the group members made an investment of Rs. 2000 in this

 Sponsors: We contacted different companies so that they would provide us some help in this project. Their contribution was highly appreciated. Following are the companies that helped/sponsored us: UBL: they provided financial help of Rs. 5000. Pakola: They were a huge help in helping our cause. They provided free of cost inventory and, most important of all, promotional material in projecting ourselves as something mature and serious. 3M: they helped us by providing a few items on credit, whereas a few other items we had to buy. Nestle: Not a very noticeable contribution, but mighty important; they provided us with a fridge to keep our drinks.

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Investment: we the invested in the following items:  Promotional items Stationary items Cloth banner. T-shirts for members

 Operational items Bowls Cups Plates Spoons.

 Inventory (includes our products) Pricing: This was a very crucial part, since, everything depended on the prices we were to set for our products. We had already decided upon an outline for our prices, but since the money had been arranged, finalization of prices was the next step. We aimed to set a minimum price for our products which managed to reach our specified profit goal. During-business: In order to keep the business going we had to use/reinvest the daily retained earnings to buy the inventory for the next day.

~MARKETING~
Brand Name: SAGE, stands for: Spend and Get Energetic! Moreover, the meaning of the word means ‘wise, judicious, or prudent’. Hence, the name assures the customers (consumers, partners etc) that they are dealing with the wise and judicious people. We don’t want our consumers to just spend their money; but we want to them spend their money wisely and get excited and energetic by buying the best product and enjoying it too. Because we believe that the key to success is to keep the customer happy. Branding:  Logo/ symbol: our logo has a trolley which signifies that we are a retail outlet and the hand represents that the customers hand which cant stop shopping at our outlet as they are too energetic!  Color: we used black and silver which differentiated us from our competitors. We coordinated our banners, shirts, posters and teasers accordingly. Promotion: following are the ways in which we promoted our outlet: Pre-business:  Teasers: Objective: to customers. create excitement and curiosity among our potential

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We put up the teasers four days before the launch of our retail outlet.

 Word of mouth: Objective: to create awareness among the students.

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All the employees started talking about our outlet a week before launching.

 Demonstration (specific to 3M Products): Objective: to introduce the new expensive product and create interest among the target market. We gave demonstrations a day before so that people would bring the money if interested.

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During-business:  Advertisement: Objective: to attract customers. We had put up the cloth banner which contained our logo and the companies which had sponsored us. We used posters to let the customers know about the products that we were offering.

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~HUMAN RESOURCE~
Pre-business: The following tasks were divided among the group members:  Idea generation: We wanted to be creative and innovative, for that we had many brainstorming sessions before we started to plan our outlet.  Sponsors: contacting, negotiating & dealing with the sponsors.  Suppliers: contacting, negotiating & dealing with the suppliers.  Promotional Items: for designing & making promotional items such as the logo, teasers and posters for the outlet.  Planning the routine: in order to run the business in an organized and systematic way we had pre-planned and assigned the routine duties and responsibilities of the employees (group members) and volunteers.  Customer Research:  Setting pricing:  Buying the inventory from the supplier for the first day of operation.  Customer contact (word of mouth)

 Setting up the outlet. During-business: The following tasks were divided among the group members: Tasks Displaying merchandise, customer contact Entering transactions, handling cash & credit purchases Receiving merchandise, inventory storage & control, replenishing the inventory. Keeping a check over the employees and assuring customer satisfaction Jobs Sales personnel Cashier Inventory personnel Supervisor

~RETAIL OUTLET~
Layout: We had planned the layout of our outlet as follows:

S A G E 4 1 6 5

3 1. Reception 2. 3M products. 3. Lottery, Nominations & Sound System. 4. Cash Counter 5. Eatable Items (ice-cream, drinks, snacks, gol gapay, biryani & haleem) 6. Tables for customers. Objective: -

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We had placed the eatable items at one side so that our customers could easily choose from the wide variety of products.

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We had placed the cash counter near the eatable so that it would be easier for us to handle the customers and it was convenient for our customers to pay the cash and receive the items quickly without any delay.

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We had set up the 3M Products at the other corner so that we could play the advertisements and promote it in a better way.

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We had put up lottery and nominations near the sound system so that when our customers would come to dedicate a song/ request a song they would also notice these additional entertainment items.

Store Atmosphere: We had created a very friendly store atmosphere by playing background music according to the tastes of our customers. This was one way of relaxing our customers from the hectic schedule of studies. Another objective was to attract them to our store. Decoration: We had decorated our outlet according to the previously decided theme (black & silver). We had put up different posters as well to add a little color to the outlet apart from the theme. Other than that we had used the promotional material provided by our sponsors for the products displayed at the outlet too.

~EXPANSION~
We showed growth in our business by introducing new products according to the tastes and needs of our target.  Following are the items we sold throughout the six days: 3M Products Biryani Bakery Items Nestle Juice Cold drinks

 Following are the items that we added to our product line eventually with the passage of time: Haleem Lassi Kurleez Lays Butter puff Cocomo Chocolate chip Biscuit

~Income Statement~

Sales Revenue Less: Cost of Goods Profit/ Loss Add: Sponsorship Net Income

Rs. 23,664 21,454 Rs. 2,210 5,000 Rs. 7,210

~LESSONS LEARNED~
Following are the lessons that we all learned after successfully completing this project:  Always be prepared for the unexpected!  Team effort always makes things easier.  Six heads are better than one. Brainstorming sessions were always fun and innovative.  It requires a lot of patience and energy to sell things.  A stitch in time saves nine!  Communication and the right approach matters a lot in the corporate world.

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