Business Plan

for a Retail Store Of “DECENT WINE SHOP”

and competitive pricing. assist with revenue growth plans. match volumes and profitability to service levels. It will distinguish itself from the competition and capture market share by securing a prime storefront location in a newly forming residential neighborhood. a broad selection of quality inventory. • Establish 30% minimum gross profit margins (retail price less wholesale cost) from inception. Inventory and sales records will be computerized. It will follow the best practices of its retail category leaders. Objective: Decent Wine Shop will be a full-service retail merchant of fine wines and spirits in Delhi. We believe it is important to remain an active member of the community. • Attract talented and motivated staff. which will be measured by our growth in sales. and in opinions and ratings published in the media. “DECENT WINE SHOP” mission is to offer its customers the highest quality products and services. • Achieve a profitable return on investment within three years. and optimize supplier/distributor relationships. anticipate demand. to allow the company to identify and exploit best selling products. Our staff will have strong vendor relationships with the product suppliers and will be able to meet customers' demand. with particular emphasis on excellent customer service. manage cash flows. • Earn a 15% internal rate of return for investors over the life of the lease. Goals: Earn and maintain Decent Wine Shop rating as one of the best stores in the Delhi wine and spirits retail trade business. • Marketing Objectives • Increase marketing efforts • Expand market area • Expand marketing reach • Brand recognition • Increase telemarketing efforts . and to impact people's lives in more ways than deriving a profit from them.Business Plan of “DECENT WINE SHOP” General Description Mission “DECENT WINE SHOP” mission is to develop into the best location to buy wine in Delhi.

000 wine cases are imported mainly by ITDC. Rose. Muscat. Port. Kosher Wine. Dessert/Fortified Wines: Madeira. Chianti. Maharashtra is leading among the states with 36 wineries and 5. Brindco. Tempranillo. developing awareness on health benefits of wine and to supply good quality wines in reasonable prices in the domestic market are emphasized. Non-Alcoholic: Brut Sparkling. Chardonnay. E&J Gallo and other private companies. Viognier. Royal Challenge. White Zinfandel. There is growing awareness about the wine as a product in the domestic market. White Zinfandel. Apart from this. Approximately 38 wineries are presently operating in the country with a total production of 6. Chardonnay. Pinot Gris. Delhi (23%).000 wine cases are sold every year. Other Wines: Champagne/Sparkling Wine. PRODUCTS AND SERVICE:Red Wines: Barbera. Petite Sirah. Sherry.2 million liters annually. Vermouth. Poor storage and transport facilities inspite of tropical climate are the main problems of wine marketing in the country. Sansula. Beers: Kingfisher. Cabernet Sauvignon. Cabernet Sauvignon. Haywards. such as easing of tariff barriers for the wines. Gewurztraminer. At present 7. Kalyani Black Label. Semillon. White Wines: Chablis. Eighty percent of wine consumption in the country is confined in major cities such as Mumbai (39%). Marketing Plan Target Market Segment Strategy . production and marketing of wines in the country. Other constraints are the lack of promotional activities for wine consumption in the country and unfavorable rules for domestic marketing of wines except in few states.4 million liter production. Nebbiolo. These and other factors contributed to India’s low wine consumption which is hardly 0. Savignon/Fume Blanc. Merlot.ABOUT WINE INDUSTRY:Indian wine industry in terms of the area. Riesling. Bangalore (9%) and Goa (9%). Which is in contrast to the much higher figures of other drinks such as whisky.000 cases of sparkling wines.62. brandy and rum sold in the country. which includes 46.07 L per capita. Kings. Chenin Blanc. 72. Pinot Blanc. Certain promotional strategies. Pinot Noir. Sangiovese. Zinfandel. Syrah/Shiraz.

Even without interstate sales. successful professionals. Target Audience Age 21-29 30-39 40-49 50-59 60+ Market Needs Other than the market segment carved out by Raman Wine shop and a handful of major players. they tend to reward the most capable merchants with loyalty and word-of-mouth advertising. Consequently. Intra-state shipments: contingent on expansion following the successful implementation of this business plan in the first year or two of operations. This is an area that Decent wine shop will work to develop as a keystone of its marketing strategy. Much of this business needs to be cultivated through opportunistic networking. demographic. preferences): Bulk volume: private and business. and baby-boomer executive is an important trend for us. and who are regular consumers of alcoholic beverages.The target market profile consists of Hissar residents who are educated. with high disposable income. Market Trends Our market has finally grown to recognize the disparity between most of the standard office furniture sold through channels. Other potential segments (geographic. our company intends to be in a good position to capture a piece of this outstanding potential growth opportunity. Most of the consumers in this category rely on assistance in selecting wines and spirits. It is important to note that if current lobbying efforts are successful in influencing state and national liquor authorities to allow interstate shipments. As a goal. little attention is paid to the opportunities of geographic extensions through direct shipments of wine & spirits throughout. This business would develop through directmail catalog marketing. . The development of the high-end office worker. Direct deliverables: (outside immediate store neighborhood) viable only as the store earns its way into a position in which it can invest in vehicle delivery operations and line up target customers that would sustain such an operation. and our own products. We now have people who are using computers who also appreciate the oldfashioned workmanship of good furniture. and an Internet sales operation. and diligent follow-ups of in-store inquiries and leads. office owners. our company will seek to capture of piece of the apparently substantial demand for direct shipment sales. a successful penetration of the intra-state marketplace would mean substantial growth for a neighborhood business.

Indians spent more than 20 billion on wine in 2008 Consumption trends and demographics point to robust wine sales growth for the next 15 years. Per capita consumption of wine increases with age.6 bottles per year. in most cases. and is projected to increase. 4000 a bottle have climbed 14 percent over the past 12 months Wine consumption is on the increase in the India and customers are trading up. 210 to Rs.1 Market Segmentation The following chart and table show the market analysis for Wine Shop . "Baby boomers. Most important is the growth in alcohol and non-alcoholic products. with early consumers drinking only 6.Market Growth According to the market for wine is growing at double digit percent per year. 3. view wine as a simple. The target customer is going to be at a high executive level. wine overtook coffee as the most popular meal time beverage in the India. because the purchase price is relatively steep compared to standard office furniture. affordable luxury." Given that the .000 potential customers who are managers in corporations of more than 50 employees. Better still for the wine industry. Wine demand is likely to be boosted strongly by the aging of the Indian population. Consumption peaks at 16.4 bottles annually among adults 50-59 years old. Market Segmentation our market indicates about 10. • Market Analysis Summary India’s sales of wines priced at Rs. more than any other previous generation.

strongest growth in population over the next 10 years will be among these adults. it is easy to understand Motto's bullish outlook. Chain stores are not allowed. it remains far beyond the practical boundaries for shoppers who live in our neighborhood. about 2. particularly for wholesalers. Indian per Capita Wine Consumption by Age: 21-29 6. Non-local stores that are in commuter paths of our neighborhood residents are also competitors. "The aging demographic transformation is going to continue for the next 15 years. Interestingly. who currently consume about 40 percent of all wines.4 bottles 14. Decent Wines on Packard Street is the next nearest competitor. and the traits of this population as they shift into their older years of life fit wine to a ‘T'" said Motto. While Raman Wines has more of a neighborhood grocer approach with less focuses on product knowledge.500 feet from our proposed storefront.7 bottles 40-49 50-59 60+ Industry Analysis Due to regulatory constraints. make up another population group that will experience rapid growth over the next decade. Another important factor is that our selection and product knowledge will appeal to the high-income in the hissar . because the purchase price is relatively steep compared to standard office furniture. The current growth rate in wine sales were adjusted to account for the population changes. Although Stillman is a high-volume shop with strength in pricing power. the retail wine and spirit trade in India is comprised of many independent participants.000 potential customers who are managers in corporations of more than 50 employees. in most cases. The influence of demographics on wine consumption is so strong.6 bottles 30-39 9. No change is seen in this structure for the foreseeable future. today's echo-boomers. although some changes are afoot in Internet-driven distribution operations.500 feet north of our location. which will make us ever aware of the importance of cultivating relationships with our neighborhood residents so we can develop a long-term loyal customer base • • . It is our primary local competitor. who will find our location much more convenient to their needs. their children. The target customer is going to be at a high executive level. Market Segmentation Our market indicates about 10.6 bottles 16. Competitors: • • 13.5 bottles Raman Wine Shop is about 1. then Indian wine consumption potentially could increase 80 percent by 2015 due to demographics alone. although not a serious threat to our main residential base of customers within Hissar.

Sales Strategy Management will focus on daily sales revenue goals. Exclusivity within Southside Towers is a significant competitive edge. interviews with liquor store owners and managers. Best value products will be identified to assist customers with smart selections. The situation will be monitored to insure that the company invests adequately in its own delivery operations. Sales staff with wine and spirit education credentials. Prices will be consistent with those of the retail stores in our area.000 current residents and up to 14. Pelican Place. and opportunistic encounters at any time by management. Southside Towers has been identified as our most promising business opportunity. share news. The business is highly territorial. We have mapped the location of every retail liquor store in Hissar.000 additional future residents. Deliveries will be geared to the customer's convenience. neighborhood solicitations. Major accounts will be solicited through networking. A&A Wines. sophisticated in business knowledge. government and industry trade statistics. relate success stories. Four target areas were identified: the newly developing Southside residential complex. Among these target areas. Sales feedback will be elicited to stimulate ideas. Seasoned executive management professionals. with the exception of very high-volume operations who have more powerful pricing leverage. the Sun city Park area and the Model Town. • • • Marketing Strategy Product pricing will be based on competitive parity guidelines. observations of store sales and traffic at Friendship Wines. It gives decent wine shop geographic and protected domain as the most convenient source of fine wines and spirits for over 3. and various other retail stores in Hissar . Pricing will be monitored continuously against neighborhood and other competitive sources (market leaders) who we can readily research. . and population demographics and projections envisioned in Southside Towers construction plans. and we have been working with executives of Castle Real Estate Company to determine the best possible location for the store. instruct in new techniques. approaches.Strategy and Implementation Summary: • Location is critical to attract the traffic and customer profile required to generate planned sales volumes. Sales Forecast • Sales projections for Decent wine shop are based on: actual sales of Season's Best Wine & Spirits. and implement improvements. Avenue Wines. experienced in the wine and spirits trade.

recipes (that match wine with food). within about 100 feet from our storefront. and producers. to present an upscale. wine and spirits distributors. calendars. Packaging party catering and event food services with a . The company will support high potential sales staff with education tuition assistance. stores. umbrellas. would be expected to purchase three bottles of wine per week from our store. corkscrews. About 40% of annual sales are expected to occur in the November-December holiday period. deliveries to consumers outside Southside Towers. and an average retail price of 300 per 750 ml bottle. therefore. One of the managing partners is musically talented and will use his skill to create programmed background music to enhance store ambience and stimulate sales. and a website will be built to enhance customer service. importers. The balance of our forecasted wine sales. on a national basis. Trade statistics show that. The "average" Southside Towers customer. and we will recruit our sales staff from students of wine education institutes. we are forecasting average sales of 15 bottles per capita per year for residents of Southside Towers.000 to 17. Sales Programs • Sales staff will have a level of wine and spirits knowledge that will position Decent wine shop to address customer needs better than our competition. is an alliance with the upscale goumet food market that will occupy a neighboring retail storefront on Mainline Avenue. and a natural fit. representing 10% of the Southside Towers population. and visitors to the Southside Towers complex of residences. similar to CD's sold by Starbucks and Pottery Barn. festive. Peripheral sales and marketing collaterals will be used to expand product lines and customer awareness of our store: wine glasses. • • • Strategic Alliances Decent wine shop will seek out opportunities to establish viable strategic alliances. With Southside Towers growing from a base of 3. and direct sales. This music will have the potential to be copyrighted and tested as a stand-alone marketable product.• • • • Regarding wine revenue potential. will come from sources external to Southside Towers: catering services. based on interviews with Boston store owners with a similar array to the product mix we have planned. cosmopolitan and culturally sophisticated image. such as co-marketing with gourmet food operations. 10% of the population is responsible for 90% of alcoholic beverage consumption. Sales revenue of spirits are projected to be 10% of wine sales. One such opportunity. and park situated on the National Highway. representing some 20% of total wine sales. supplier commerce. corporate accounts.000 residents. A proprietary website address has been registered. Decent wine shopwill take advantage of this opportunity as much as possible within budgetary limits. The store layout will be planned with a commercial interior designer. This is in-line with the retail liquor store norm and confirmed by owner interviews and trade statistics.

a main artery for vehicles and city buses coming and going from the complex. 2. Layout .complement of fine wines and spirits from Decent wine shop will help promote both businesses and provide an extra measure of service to our neighborhood customers.M. Exports and Imports 3- Marma Goa Inc. The site is one of the densest and wealthiest markets in the Haryana. facing Excelsior Place.R. Our storefront will be prime retail space in the Hissar . Coordinating gift baskets with wine orders in a single delivery package presents another compelling co-marketing opportunity. When fully completed (in approximately seven years).Imperial spirits ltd. OPERATIONAL PLAN:Company Locations and Facilities Decent Wine Shop will be located in the newly developing in Hissar . Key suppliers:- 1. Information specific to pairing wines with food can be used to stimulate sales as well.

customers can pay us the amount of shopping in the three easy installments after every month. And to customers we are also providing the credit policy for their payments. We payment them for the first delivery on the second delivery means there is relief for us of one delivery. Store management:- .Credit policy:Yes we have a credit policy with all three supplies of Wines. This strategy also help us as a word-of-mouth publicity because if a customer firstly comes to us and fell the quality of our products we are proving he/she will surely tell this thing to others and promote our business. We can provide this facility to customers for to make with them a customer relation management and for to retain them for longer time.

appropriate sections should . as a retail store manager you need to ensure that the whole team comprehends that. however. and coaching. Merchandise should look crisp and new at all times. So. If the items are shop-worn. both inside as well as outside the retail store. there is no escaping the fact. Also. see to it that the sales staff does that extra bit to make the customer feel pleased. including the staff – how they are dressed and how they behave – do matter. some special store giveaways can be packed with their purchases.’ Well. you can build a strong customer rapport. it is seldom practiced. recruiting. People do care about the ambience of where they shop. Appearances do matter: Although you may dismiss it as a superficial aspect of a superficial consumerist society. training. when you are with a customer. they won’t be sold in the numbers that they ought to be. If the items are not displayed or seen properly. by giving more than whatever you may have promised. The customer is the most important facet of any business. they should be put in the bargain section. During that time don’t let anything else interrupt you.Retail store managers should have organizational skills which includes the ability of paying attention to detail as well as following-up matters. Hence. For instance. give him or her your exclusive attention. and behaves as if they do. Please the customer: Although this is touted often. Items that are usually bought on impulse should be placed on display close to the cash out area. The job also involves the capability of managing multiple priorities along with management skills like communication. As a retail store manager. especially as a measure of calming their displeasure about something. Merchandising management:Merchandising management is same as part of store management for to merchandise” Decent Wine Shop” as I tell u before we place two skilled person who are responsible for to merchandise the store in a better way so that… Display merchandise attractively: A vital part of retail store management is seeing to it that the merchandise is displayed properly. listening closely to whatever they may be saying to you. that age-old saying holds true even today. Some tips for successful store management:The customer is always right: Yes. Make the customer feel special: Everybody likes feeling special. that the first impressions of the store. According to these requirements we place 2 members who will be responsible for store management with store manager. Promise less and deliver more: You have heard of the old saying ‘Don’t promise what you cannot deliver.

000 3. The product lines that are not selling well should be marked down to half their price in order to sell them off fast.000 1. as a retail store manager.00 15.000 1. FINANCIAL PLAN Start-up Amount Requirements Start-up Expenses Legal Stationery made for merchandise.00. Marketing Computer Systems Security Store Layout Pre-opening Staff and Training Total Start-up Expenses Amount 15. Items should be shown to advantage: Apart from displaying merchandise attractively.000 15.000 4. Get rid of unsold merchandise: The bottom 10 to 20 percent of the product lines should be gotten rid of every year to be replaced by new products. Placards and signs are also another method of grabbing the eye of the customer. Items that are similar in nature should be placed in the same area.00.00. you should also make sure that the items are placed in such a way that they draw the customer’s attention.000 50. is the best way to display specials.000 22.000 . When thinking about how to display items.00. or a little lower than that. and the items should be placed in the correct sections.00. Hiding or stacking merchandise will not attract the attention of the customer.00. try to imagine what the customers will view with the display.20. Placing merchandise at eye level.000 1.

000 6.000 5.000 37.000 15.Start-up Assets Cash Required Start-up Inventory Long-term Assets Total Assets Total Requirements 500000 .20.00.000 Projected Trading and Profit and Loss a/c Particular Amount Sales Direct Cost of Sales 20.00.

000 Total Operating Expenses 1445000 Profit Before Taxes Interest and 1055000 Interest Expense Taxes 400000 100000 .Total Cost of Sales 2500000 Expenses Payroll 500000 Depreciation 250000 POS computer software lease 60.000 Rent Insurance Vehicle Delivery Expenses 400000 25000 60.000 Advertising/Marketing 150.

Net Profit 500000 Projected Balance Sheet Assets Current Assets Cash Inventory Total Current Assets 100000 1000000 1100000 Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets 180.0000 1500000 3300000 44.00000 Liabilities .

Current Liabilities Bills Payable Total Current Liabilities 700000 700000 Long-term Liabilities Total Liabilities 4000000 47000000 Total Capital 1000000 Total Liabilities and Capital 5700000 Projected Cash Flow Cash Received Cash from Operations Cash Sales 2000000 Expenditures .

2000000 p.00.a Contribution = Sales.0000 =900000 BEP = Total fixed cost/contribution = 600000/900000 = 6.Expenditures from Operations Cash Spending Bill Payments Total Spent on Operations 800000 700000 1500000 Long-term Liabilities Repayment Principal 400000 Cash Balance 100000 Break Even Point Total sales =Rs.6 month (appx.Variable Cost 20.) .000-11. .Appendices: Idea taken from the www.

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