ONLINE GADGET STORE

BUSINESS PLAN

SUBMITTED BY: ARIF MASOOD (BAF-06-50)

SUBMITTED TO: SIR FARASAT
SUBJECT: E-COMMERCE

DEPARTMENT OF COMMERCE
BAHAUDIN ZIKARIYA UNIVERSITY, MULTAN
 GADGETS MART- BUSINESS PLAN

TABLE OF CONTENTS

General Company Description 01

Slogan 01
Vision 01
Mission 01
Strengths 02
Challenges 02
Key points to success 02

Operation Plan 03
Infrastructure of Business 03
Location 03
Equipment\Machinery 03
Legal Requirements 03
Product Description 04
Product Sourcing\methods 05
Order System\Payment Options 06
Shipment method\policy 06
Feedback\ Helpline system 06

Marketing Plan 07
Target Market 07
Market Growth Potential 07
Pricing Strategy 07
Promotion strategy 08

Financial Plan 09

Website Development Plan 10

Website development roadmap 10
Website Components 10
Web design features 11
 GADGETS MART- BUSINESS PLAN

GENERAL COMPANY DESCRIPTION

Company Overview:
GADGETS MART will be one of Pakistan's first and best technology and digital lifestyle
shopping portal. Providing a simulating online shopping experience, it will offer the
latest and wide range of daily life gadgets and electronic products at most competitive
prices. Our focus will be on bringing you the most unique gadgets in Pakistan that will
make your life a lot better and stylish.

Slogan:

The Good Life at a Great Price, Guaranteed.

Vision:

To be a distinguished Pakistani Gadget store known for the variety

and quality of products, setting new trends and lifestyles

Mission:

To offer continuous value added products to our customers and to

make online shopping experience easy, enjoyable and absolutely
secure.

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 GADGETS MART- BUSINESS PLAN

Strengths & Core Competencies:

We see following as the strengths of our business,

First proper Pakistani gadget store offering wide variety of such products
Low competition
Offering Pakistani demand specific products
Reasonable prices
Payment & delivery methods that Pakistani customers are comfortable with

Challenges:

GADGETS MART will have to overcome following challenges to survive and prosper,

High import duties and taxes

Delivery timing and charges
Creating trust at initial phases and giving customers feeling of security
Reaching to customers and making a name for the business

Keys points to Success of the Business:

Sell variety of quality products with good comparable prices.

Focus on customer needs and value his demand.
Advertise to expand customer base and to create more awareness through print
magazine advertising, internet advertisements and other methods like social
websites.
Ensure in time and safe delivery method of products to customer.

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 GADGETS MART- BUSINESS PLAN

OPERATIONAL PLAN

Infrastructure for Business:

To start Business Company shall need to have a proper infrastructure in terms of proper
working place, equipment, machinery and personnel, etc

Location: Location of GADGETS MART physical office from where all the operations
will be done is in Lahore city, which has almost all the modern day facilities which an
online business store need to run. At initial phases GADGETS MART plan to operate
completely as a pure e-commerce business but at later stages considering success rate,
it will also plan to launch physical store in cities like Lahore, Karachi or Islamabad to
reach to maximum target market.

Equipment\ Machinery: GADGETS MART shall need to make some good

investments in office equipment, furniture, machinery and transport, if necessary. At
initial stages GADGETS MART plan to run its self from a office of not more than 3 rooms,
which shall need furniture like tables, chairs, cabinets, electric equipment like fans, air
conditioner, lights and machinery like printers, fax machines, computers, monitors, lcds,
and miscellaneous etc.

Legal Requirements: Legally registering your business under Pakistan law gives
your business a better image, and customers feel more secure trading with you.

E-file the company name at the SECP website

Register the company at the Registrar of Companies
Obtain digital signature
Apply for a national tax number (NTN

Also to operate we need to open a bank account, and if we are going accept credit
cards we shall also open a merchant account.

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 GADGETS MART- BUSINESS PLAN

Product Line Description:

Gadgets will include products from categories like Car stuff, energy efficient stuff,
games, home applications, kitchen and garden applications, computer gadgets, etc..
Products could be like.. Arm sleeper pillow, relaxing sofa, massage machines, solar
chargers, dish washers, i-pods, Diet scale machine, Kitchen equipment, Fitness stuff etc..

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 GADGETS MART- BUSINESS PLAN

Product Sourcing:
Product sourcing and inventory management is very important aspect of running a
product based online store. Inventory management is important because we have to
look for inventory keeping cost, obsolete risk of items, losing a customer because of
zero stock etc.

GADGET MART shall use three types of product sourcing strategies at three different
levels. They are described as below;

For regular products, we can have these products Drop Shipped directly to our
customers, and never have to stock up for these products. This allows us to display
relatively larger variety of products through our online store and no inventory cost to us.
Having variety of snorkelling products also gives the impression of larger professional
business to our online customers.

For in demand products, which are selling well than the rest, we can locate Light Bulk
Wholesalers. We buy them less expensive in light bulk quantities and ship these
products ourselves. Hence, we gain higher margins on these particular products.

For low-cost "Special-Offers" Products that we offer to bring in more customers. By

offering products with margins pennies on dollars that could be used as a bait to bring
in more customers and then show them higher price tag products. To do this we look
for Liquidation Supplier to buy products at lower than wholesale prices.

Our Products Source\wholesalers:

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 GADGETS MART- BUSINESS PLAN

Order system and Payment Options:

We aim to offer the payment procedure very easy, secure and understandable for our
customers. We shall install proper payment processor system which shall make
payments more accurate and easier to keep track of orders. There shall be a facility of
making id and selecting password, where customers can set default delivery options,
addresses and can get rid of hassle of filling forms again and again. This system shall
also be able to give feedback to customers on status of their orders.

Following are the payment options

By credit card
Western Union, Moneygram, etc
Cash at Delivery
Money order (most easiest way, accepted from anywhere in Pakistan)
Deposit to Bank account (personal account not needed, send details @ email)

Shipment Methods and Policy:

Shipment shall be done through famous courier service operating in Pakistan

Delivery time can be from 4-10 days depending on product type and location
Shipment shall be free if the order is of above 5000 rupees and is in major
metropolitan cities (can be selected from drop down list)
Shipment for order lower than 5000 have appropriate charges
Charges for remote cities, only if they are listed in our delivery coverage area shall
be calculated by courier service provider.
Charges shall also be determined on basis of size, area, weight, nature etc
Customers shall be informed of delivery timing 24 -48 hours before.
Customers shall be able to keep track of their orders through courier service as
well as website.

Feedback\Help line: There shall be a proper feedback system through e-mail as well as
phone number.

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 GADGETS MART- BUSINESS PLAN

MARKETING PLAN

Target Market:
Target market is identified as below;

Geographical categorization: Pakistani residents, who sought for technology

products, students, professions, business persons, self doers, etc
Class based categorization: Upper and upper middle class.
Internet users, small business users, home application users etc

Market Growth Potential:

Growth potential of business target market is great, as the trend of using technological
products is increasing and people are trying to improve their life standard. More over as
the electronic media is growing, awareness about gadgets and their usage is also bound
to increase which will ultimately result target market growth.

Pricing Strategy:

GADGET MART shall design its pricing model according to following elements:

Cost of goods
Initial mark-up
Promotional strategy Expenses
Competitor price
Retail strategy

Since GRACE MART is new in business, and though it dont has any local competition
but still faces competition from online gadgets store over the internet, so it will try to
keep its costs as low in as possible at initial phases. GADGETS MART ll be using mix of
following pricing approaches..

Penetration Pricing: To penetrate in market and to create loyal customers.

Cost Plus Pricing: Cost plus 10-15%, as per other elements mentioned above.
Bundle Pricing\Special offers: Special pricing for bundle purchases.

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 GADGETS MART- BUSINESS PLAN

Promotion Strategy:

Promotion strategy is one of most key elements to success of any modern day business
and this element become even more important in case of online business. The basic aim
of promotion strategy in case of online store should be to

Get traffic to the website

Convert traffic into paying customer

Our website will use following of promotion techniques to get more and more paying
visitors to our website

Online Banners Advertisements (Pay per Click): Our online store shall select some
websites that have good Pakistani traffic on them, and where traffic is closer to our
target market. We shall try to select Pakistan based websites and blogs as advertising on
them is much more cheaper as compared to international level websites. Store shall take
services of graphics designer to create different size advertisement banners for store in
animated and still formats and advertise them for specific durations on those sites.

Moreover in case of good opportunity Website link exchange with complementary sites
technique can also be used.

Offline advertising: GADGETS MART shall also use offline promotion means like press
media advertisements and posters in particular offline events to bring customers to its
website. Technology and other English magazines covering such topics could be a good
choice to give offline ads.

Article marketing: Article Marketing is a new trend and becoming very common for
many of online stores. GADGETS MART also plan to use this techniques by using
relevant Pakistani based blogs to write an article or two about the GADGETS MART and
its specialities.

Social media (Facebook Fan page): Store page shall be maintained at facebook.
Special offers and Products shall be displayed there and updates shall also be posted to
get customers from most famous social website of today.

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 GADGETS MART- BUSINESS PLAN

FINANCIAL PLAN

GADGETS MART shall need an initial investment of around 0.5 million rupees. It shall
need 4 months to come into operating stage and shall take around 8-10 months to
generate sufficient revenue for further sustainable business running.

Here is summary of financial plan of GADGETS MART:

Initial Investment requirement: 0.5 Million Rupees

Total investment: 0.8 Million Rupees

Details will be following:

Location of Office
Furniture & equipment
Technical machinery, computers printers etc
High speed DSL connection
Personnel Hiring
Software Purchasing
Legal requirements expenses
Consultancy expenses
Promotion expenses
Testing expenses
Bank and Merchant account
Cash in hand and bank for urgent expenses
Initial inventory expenses etc

GADGETS MART aim to reach revenue generation stage within 8-12 months of starting
of operations of business.

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 GADGETS MART- BUSINESS PLAN

WEBSITE DEVELOPMENT PLAN

Website Development roadmap:

Choose domain name for your online store (www.gadgetmart.pk)

Register that domain name
Choose a web hosting provider (www.bluehost.com)
Hire a web development team and other personnel
Buy shopping cart software
Install the shopping cart software on your website
set up the shipping options in your online store's control panel
Sign up with a payment processing company supported by your online store's
software
set up the payment options in your online store's control panel
Select and apply a design to your store
Configure the store with your settings, logo, and address
Add a Terms and Conditions page or modify an existing page
Order and install an SSL certificate to secure checkout and registration
Place a test order online using a real credit card to see if checkout works and if
the funds show up in your account

Important Website Components:

Company logo on each page

About us page
Feedback page
Privacy policy
Shipment policy
Payment methods
Terms & conditions
Facebook joining link
etc

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 GADGETS MART- BUSINESS PLAN

Web design features:

1) Visually Appealing: GADGETS MART website will be visually appealing and have a
balance between, content, colour & graphics. This well organized, visually appealing
presentation will send a positive message about our product & it could mean the
difference between a sale and a non-sale.

2) Useful & effective Information about product: GADGETS MART shall facilitate
customers by providing information, reviews, about products, as well as close images
and videos. This will make purchase decision easier for the customers.

3) Easy to Find Products and search options according to category, price, type etc
4) Easy to use Navigation system where customers has idea that at which place he is and
he can move to any place on website easily from any page.
5) Review and comments system for each product
6) Links to relevant or complementary products on every product page
7) Special offers, hot list etc displayed through attractive styles and animations
8) Achievement, Awards, Certificates mentioned at right or left hand side

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