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A REPORT ON
DESHI-FOOD.COM
An Online Based Business Idea
Group: Inner Peace
Department of Management Studies
University of Barisal
Table of Contents
1.Executive summary .........................................................................................................................4
2.Introduction....................................................................................................................................5
2.1.Background of the study:..........................................................................................................5
2.2.Objective of the Report:............................................................................................................5
3.Business Idea: .................................................................................................................................6
3.1.Vision:......................................................................................................................................6
3.2.Mission: ...................................................................................................................................6
4.Background information..................................................................................................................7
4.1.Online-Business:.......................................................................................................................7
4.2.The 4 Stages of Developing Online Business service:..................................................................7
4.3.Online Shopping in Bangladesh:................................................................................................9
4.4.Advantages of DESHI-FOOD.COM:...........................................................................................10
4.5.Challenges of DESHI-FOOD.COM .............................................................................................11
5. MARKETING:................................................................................................................................12
5.1.Market Segmentation:............................................................................................................12
5.2.Marketing Strategy:................................................................................................................12
5.3.SWOT ANALYSIS: ....................................................................................................................12
5.3.1.Strength...........................................................................................................................12
5.3.2.Weakness ........................................................................................................................13
5.3.3.Opportunities ..................................................................................................................13
5.3.4.Threat:.............................................................................................................................13
5.4.Sales Strategy:.....................................................................................................................14
6. Business strategy .........................................................................................................................14
6.1 The general environment........................................................................................................14
6.1.1 PESTEL ANALYSIS .............................................................................................................14
6.1.2 PORTER’S 5 FORCES MODEL .................................................................................................15
7. Operation: ...................................................................................................................................17
Business to Business(B2B): ...........................................................................................................17
Business to customers(B2C)..........................................................................................................17
7.1 Value proposition: ..................................................................................................................17
7.3 Business model:......................................................................................................................18
7.4 Inventory management: .........................................................................................................18
Fluctuation inventory..............................................................................................................19
Lot size inventory:...................................................................................................................19
Cross docking..........................................................................................................................19
Refresh inventory ...................................................................................................................19
Transportation cost:................................................................................................................19
Warehouse to warehouse: ......................................................................................................19
Warehouse to customer..........................................................................................................19
7.5 Operational model:.................................................................................................................19
7.5.1 Stock it yourself model:....................................................................................................19
7.5.2 Outsourcing warehouse model:........................................................................................20
7.5.3. Time Slots for delivery .....................................................................................................20
7.5.4.Methods of payment .......................................................................................................21
8. Web Plan .....................................................................................................................................22
8.1 Website marketing Strategy....................................................................................................22
8.2 Development Requirements: ..................................................................................................22
8.3 Web Design: ...........................................................................................................................23
8.3.1 Web design Plan: .................................................................................................................23
8.3.2 Web design:.........................................................................................................................25
9.FINANCIAL PLAN ...........................................................................................................................27
9.1 Capital Estimation...................................................................................................................27
9.1.2 Fund Sourcing......................................................................................................................29
9.1.3 Future growth strategy ........................................................................................................29
9.1.4 Exist strategy .......................................................................................................................29
10.Conclusion: .................................................................................................................................30
1.Executive summary
“DESHI FOOD.COM” focuses on the online grocery retail business. The objective of this Online-
business is to make a marketing-based business plan of a company, which sells “DESHI FOOD”
through online. It provides an insight on online-business and different aspects of marketing related
to the concept of an online store. It also discusses the theory of marketing and online-business
combined with the practice of a business plan. This plan is for the people who are interested in
online-business especially from a marketing point of view and who are searching for information
on how to start an online store. This plan begins with the presentation of the business idea followed
by the mission and the vision of the company. The following part provides background information
on online-business and ecommerce and some information on the online shopping behavior of the
people in Bangladesh. This section also covers the advantages and challenges of online-business.
The next section is the largest for it is the marketing section of the online business. This section
provides theoretical information on marketing and marketing strategies. It will go through such
things as market segmentation and definition, followed by the marketing strategy containing,
SWOT analysis, competitor analysis, a marketing mix and the generic strategies. The last section
of this plan is very practical as it is constructed of information on logistics and finally a rough
budget in the end. We believe “DESHI FOOD .COM” as a disruptive technology destined to
replace the traditional way of trading with Deshi and direct groceries shopping experience in
Bangladesh.
2.Introduction
2.1. Background of the study:
The study is necessary in fulfillment of our course ‘Management Information System’, course
code: ‘MGT 321’ assigned by our honorable course instructor ‘Tazizur Rahman’, Assistant
professor of department of management studies, University of Barisal. Report topic is ‘ONLINE
BUSINESS PLANNING’. It was given to our group by our course instructor for the betterment of
our skills and enhancement of our reporting and field work capability. After completion of this
study we will be more experienced and will be more confident to do any professional job. On
doing this study we were backed up by our course instructor.
2.2. Objective of the Report:
 The objective of this report was to give a detailed insight of the marketing strategy of
“DESHI FOOD.COM” starting from its inception till today in Bangladesh.
Primary Objective: of this report is to use the theoretical concepts of Marketing in practice on
online and to provide fresh deshi food to our target and potential customers
Secondary Objective:
 To flawlessly serve deshi food with low cost and quick delivery to our customers.
 To build a stable and effective network between distributors, wholesalers, retailers and the
household customers.
 To build an effective sustainable technology
 To be our customers the best value or money and quickest service.
3.Business Idea:
In a nutshell, the idea is to put up an online store. The name of our business idea is “DESHI
FOOD.COM. By ``DESHI FOOD.COM’’ we provide different types of food such as deshi meat,
deshi cake, deshi vegetable deshi fish and deshi fruit to our target customer through online with
affordable prices, straight to the consumers. We receive online order and delivery respective food
items from various channels. Basically we collect our product from local area, own firm and direct
supplier. By providing our service we get customer satisfaction. Customer also get quality product,
frees product by their time consuming. We can participate in economic development by collecting,
selling our product within national boundary from our business.
3.1. Vision:
 During the first year of operation we want to gain a good reputation, through affordable
prices, fast delivery and great customer service.
 Accomplish a steady cash flow and long term business partners.
3.2. Mission:
 Our mission is to provide high quality with lowest price products along with doorstep
delivery. Deshi Food.com the taps the unattended needs of the people who do not find
traditional trading convenient due to many unavoidable reasons. Our foremost mission is
to provide convenience to the customers followed by the best value for money backed by
quality and satisfaction.
4.Background information
4.1. Online-Business:
In order to understand e-business and this business plan on an online store, it is good to have a
closer look at the background of e-business and the developing of e-commerce.
Definitions:
We will start off with some definitions by Jennifer Rowley from her book “E‐business, Principles
& Practice”.
“E-commerce is doing business electronically across the extended enterprise. It covers any form
of business or administrative transaction or information exchange that is executed using any
information and communication technology. Morath (2000) views ecommerce as often taking a
narrow perspective limited to specific initiatives, such as sales over the Internet, procurement
or payment.
“E-business is a wider concept that embraces all aspects of the use of information technology in
business. It includes not only buying and selling, but also servicing customers and collaborating
with business partners, and often involves integration across business processes and
communication within organization.
4.2. The 4 Stages of Developing Online Business service:
Stage Characteristics Website Functionality
1.Contact  Promote corporate image.
 Publish corporate information.
 Offer contact information
Content
2.Interact  Embed information exchange.
 Target marketing effort.
Communication
3.Transact  Online transactions.
 Catalogue order/fulfillment.
 Interaction with trading partners.
Commerce
4.Relate  Two-way customer relationships.
 Full integration of Internet capability
into the business.
 Service interface integrated with delivery
and other business operations.
Community
First stage:
The first stage is a very basic level and it is basically only about making a company appear also
on the Internet in addition to its physical location. It offers the customer some information on the
company and gives the company a chance to promote itself online. Contact information and for
example opening hours can be displayed on a stage one website.
Second Stage:
The second stage is a bit more developed stage. It provides the customer a chance to interact with
the company through the website. Target marketing and for example a company news section can
be added to this type of a website. It also requires updates and more maintenance from the
company’s behalf compared to stage one.
Third Stage:
The third stage differs a lot from the first two stages, because this is the stage where the money
starts to move. It provides the customer a possibility to order products or a catalogue. The
transactional possibilities make this stage only one step away from the final stage.
Fourth Stage:
The fourth stage provides a full integration of Internet capability in to the business. It offers the
two-way relationship between the customer and the company, both parties providing each other
with some information. This can be on the businesses behalf for example product details, price
details, business process details and brand values and messages. On the customer’s behalf, this
could mean order details, customer details, billing and shipping addresses and order placement
confirmation.6 This is the stage where Hockeystore.fi needs to be in order breakthrough in
Bangladesh.
4.3. Online Shopping in Bangladesh:
There are a lot of e-Commerce websites in Bangladesh selling products online, more online
shopping websites coming. Here is a list of top 14 largest e-Commerce sites in Bangladesh.
1. AjkerDeal.com
2. daraz.com.bd
3. rokomari.com
4. priyoshop.com
5. bagdoom.com
6. kaymu.com.bd
7. othoba.com
8. chaldal.com
9. iferi.com
10. akhoni.com
11. buymobile.com.bd
12. branoo.com
13. coxsbazareshop.com
14. foodpanda.com
4.4. Advantages of DESHI-FOOD.COM:
Global promotion: “DESHI-FOOD.COM” offers a chance to promote our products globally
through the Internet. Online Business as “E-business” has made it possible for companies to
globalize their business much faster than before. The Internet provides a chance for users around
the world to access our web site, even if our business operations are only local. The web page is
visible online to anyone, anywhere, which provides our business the reach that wasn’t possible
before. In addition, it gives smaller businesses to compete with other companies on the same
ground locally and internationally, which is huge advantage, but also a threat.
Low costs: The costs of running an e-business are relatively smaller than in running a regular
business. First of all, the operating costs of our business are low. Our online business does not
need large offices and warehouses and it is not tied to a certain location, thus reducing
infrastructural costs. Also, the inventory costs and labor costs are minimal, because there is no
need for a large staff. Not only does the e-business save money, but it also saves time. Our online
store is functioning on its’ own without being behind the counter all the time. Also since all the
action happens through the Internet, the transactions between the buyer and the seller happen
faster.12 Marketing costs are also reduced in e-businesses. Direct marketing to the customer can
be done via e-mail. Many online shops have a loyalty program, which encourages the customer to
shop at the same place again by rewarding the customer with, for example, discount
coupons/codes. This can be as well done via e-mail.
Convenience: Convenience is a great advantage that comes with online shopping. For example,
our online store is open 16/7 and is accessible from any location with and Internet connection. In
other words, e-business removes the restrictions of availability and location. It also allows the
customer to shop without leaving home which saves him the effort of dressing up and physically
moving from a place to another just for the possibility to go shopping. E-business also provides
the customer with the option to keep their product in the electronic shopping cart if they don’t feel
like purchasing the product right away. The possibility of comparing similar products in different
web stores is also a matter of convenience. There is no need to walk to the other store wince it is
one click away. This is also a threat for the online shops, because it is extremely easy for the
customer to buy the product from another store.
Customer service: Customer service is one of the key elements and one of the best advantages
that an e-business can offer. The customer service is better and more personal when the customer
can be in touch with the company through the Internet, without having to leave home. Also,
updating the web site with new information on products, prices and availability is easy and fast.8
4.5. Challenges of DESHI-FOOD.COM
Security: One of the biggest problems in e-business and online shopping is the security issues.
To be more specific, the problems are in ensuring the security of data transaction. The reason why
security is challenge is in e-business, because the transactions happen through the Internet and
because of the TCP/IP (Transmission Control Protocol / Internet Protocol) protocol that governs
the communication. These protocols are open protocols, which means that when the data is
transmitted from a computer to another, a third party can intercept it. This brings us to the reason
why we have encryption.
Trust: In addition, there are the trust issues. Online shopping is still considered to be a bit shady
by some people, because of trust. The customer may think: Will I ever get my products? Where
does my money go? How is my information used? These are all questions that make the gap
between ordering and not ordering, online.
Competition: Competition is a difficult one, because it is both an advantage and a threat. This
is why we put it last in the list of challenges. For a small start-up business, the Internet provides
competitive advantage, because on the Internet, the store is almost on an equal level with the online
stores of big corporate chains. It is also a challenge, because the costs of putting up an online store
are very low, which means that the entry barrier is extremely low for new companies. Shortly,
everyone is almost in the same position, but the competition is tough.
5. MARKETING
5.1. Market Segmentation:
The purpose of this section is to establish the division of different market groups with similar
needs and wants to a market segment, which is suitable for “DESHI FOOD”. For the concept of
an online store selling Deshi food, the key elements in this market segmentation are: gender and
interests. In short the target market is: boys and men of all ages, with an interest towards Deshi
Food. We have identified the customers for our business:
 Customers are aged between 23 years and above.
 Customers whose house hold income is >30000 per month.
 If any customers are having dual income household.
 Customer/households with children.
 Average commute time to work of customers.
 Customers number of households with internet access and its awareness.
 Customers and adults with credits access.
5.2. Marketing Strategy:
In order for “DESHI FOOD.COM” to be successful, it will need a functional marketing strategy.
A marketing strategy is a plan that will measure the resources of the company and apply it to
increase the sales and gain a competitive advantage among the competitors. It involves several
market analyses, which will provide information for the actual strategy. There are many ways of
executing a marketing strategy, but this is the way that in my opinion is the most suitable for this
type of a company. A marketing strategy consists of SWOT analysis, which concentrates on the
internal and external environments, in which the company is operating.
5.3. SWOT ANALYSIS:
5.3.1. Strength
 DESHI FOOD.COM has strong financial assets
 DESHI FOOD.COM guarantees to sell product with quality at lowest price
 DESHI FOOD.COM uses advance food technology
 DESHI FOOD.COM has strong relationship with local stores and its distributors
 DESHI FOOD.COM approach is very innovative
 DESHI FOOD.COM has excellent customer service
 DESHI FOOD.COM has high standard for cleanness
5.3.2. Weakness
 Since we are new, so we might need some time and cost for entering the market
 We focus on competitive advantage not cost leadership by selling Perishable products.
This could make us slow to diversify into another (unperishable product).
5.3.3. Opportunities
 We can get the sweet spot in the market. Market opportunity analysis is complicated.
There are many competitors and even some technology which are not right technology
currently running in the market. We clarify differentiate our business in the eyes of our
potential customers or clients. We focus our team on delivering the promise of the
previously unmet promise by our competitors, helping to improve our internal
performance.
5.3.4. Threat
 Shopno is very well known in Bangladesh. They have good innovation and very loyal
customer.
 Mina bazar was created a bulk buying strategy, believing customer would order large,
economical quantities.
 Direct freshbd is another threat for our business.
5.4. Sales Strategy:
Deshi-foods will process 90% of its sales online through a secure socket layer (SSL), and secure
Internet connection. All orders will be charged to Visa, Master card. By ensuring that the website
is easy to navigate as well as simple to order from, deshi-foods will be ensuring that people who
make it to the website will end up purchasing something. This last point is key, Deshi-foods should
list merchandise that people most want and prevent the order outside of the metropolitan area to
keep the high customer satisfaction.
6. Business strategy
6.1. The general environment
6.1.1 PESTEL ANALYSIS
PESTEL FACTORS STRATEGY
Political Deshi food .com plans to increase delivery charges from customers
to financial coupe and short out the parking violation problems.
Economical Safe management cost, keep balance pressure on customers.
Social Creating private sector jobs, Deshi food.com will make sure that
surplus food will be giving to Bangladeshi homeless and those who
need.
Technological Deshi food .com will maintain its advanced technology and also
seek innovating technology to keep better technology the
competitors.
Environmental Use eco-friendly production system.
Legal Deshi food .com products are tasted by in house laboratory which
ensure the facilities adhered to BSTI guidelines. It will disclose its
financial statement publically and pay the taxes regularly, not taking
any step against the regulations.
6.1.2 PORTER’S 5 FORCES MODEL
It is important to analyze the completive nature of the online grocery industry in order to assess
the position of Deshi food .com. The Porter’s 5 forces tool to enable to make strategic decisions
Forces Strength
Threat of new entrants
The e-commerce grocery entrants require a big
capital, experiences, understanding the advanced
technology system, earing online grocery and
access to suppliers and distributors.
low
Threat of substitute
The local suppliers, distributors and corner stores
are other options of customers to buy Deshi food.
But Deshi food.com is convinced that customers
will get the best shopping experience with Deshi
food.com compare to other competitors.
Low
Power of suppliers
Deshi food .com suppliers has good brand in
market, so they can easily access with the product
producers.
Medium
Power of buyers
In the modern era, especially in divisional area,
customers have easy access to everything with
internet so the information of price and product is
opened widely.
High
Completive Rivalry
The strongest competitors in Deshi food, it has
advanced technology .it is also well known and
leading in the market. However, they sell the
product at quite high cost.
Medium
6.1.3. Competitive advantage
According to the traditional market and its approach, we are not having any direct competitors,
even if they are provider of same products. Since we are providing approaching and attracting with
something new strategy. In the meantime, we are providing the facilities in new but easily available
and handle technology and platform to do business with us. even if there are huge competitors, we
are providing be best and secure services to the customers at their ease. Even since customers seek
specific benefits, so buy assessing the current player’s performance in meeting the customer
standard will provide an indication of the potential for our company to move in and win.
7. Operation:
Our operations are carried out according to two approaches:
Business to Business(B2B):
In this category we are develop to one to one customer relationship. Here customer are the whole
seller & retailer. When it comes to business it does not account for a single decision making unit.
Because there is a great difference between selling to an individual & selling to a business. Our
business is composed to a number of distinct individuals & many difference people will likely to
have an influence on the decision making process.
We are maintaining our relationship with the whole seller, as customer to go deeper to maintain
relationship with individual decision makers. We are not viewing our success just in terms of how
many new customers we can acquire but in terms of how deeply we can penetrate our current
customer accounts. We are reducing our inventory by establishing a close or communication
process with the supplier n terms of input needs and procurement time frames.
Business to customers(B2C)
As in this category our consumers don’t care how the order is fulfilled so we have design our own
supply chain. In this category we are selling hundreds of thousands, we are keeping our eye on the
statistical analysis of our customer base to figure out what’s going on at any point in the time with
any particular types of customer.
7.1 Value proposition:
Value propositions that “DESHI FOOD.COM” has is the go-green campaign. The delivery truck
route reduced CO2 emissions by at least half in their model compare to car trips.
7.2 Milestones:
“DESI FOOD’’ will have several milestones early on:
 Business plan completion. This will be done as guidance for the organization. This will be
an indispensable tool for the ongoing performance and improvement of the company.
 Office and ware house set up website completed
 Complete hiring of initial company personnel’s
7.3 Business model:
Since our business is selling foods to the customer, it is a B2C model. We do need pay attention
in detail when we are doing retailing on the website.as in this category our consumers do not care
how the order is fulfilled so we have design our own supply change. We keep recording how many
inventories we sold out monthly to figure out how many inventories we should keep in hand. It
helps us with how we should keep our supply chain.
7..4 Inventory management:
This is a key term in term of cost effectiveness. It is the direction and control of activities with the
purpose of getting the right inventories in the right place at the right time in the right quantity in
the right forms at the right cost. We optimize our supply chain by keeping the inventory very low
by using certain technique such as….
 Fluctuation inventory: This introduce in our inventory management with the purpose of
preventing disruption in delivery to customers. we have maintained a buffer stock.
 Lot size inventory: we are purchasing items in quantity greater than needed to take
advantage of quantity discount, to reduce shipping and set up cost
 Cross docking: in this strategy we are moving our goods directly from our warehouses to
consumers. This distribution strategy we have applied in which the customer and
distributors are supplied by central warehouse.
 Refresh inventory: We are constantly refreshing our inventories through received order and
products coming from the distributors.
 Transportation cost: This includes the cost of moving the items from the warehouse to
warehouse & warehouse to consumers. The overall transportation cost is 31% of the capital
estimation.
 Warehouse to warehouse: It includes cost of moving the items from one warehouse to
other. This will mainly occur when the cost of moving goods from distributor to warehouse
is high than the cost of moving product among the warehouse.
 Warehouse to customer: This includes the cost of shipping the products from the
warehouse to the customers. If the time slot is in one or two days, then we will ship the
items directly from the distributors using the cross docking strategy.
7.5 Operational model:
7.5.1 Stock it yourself model:
In this we maintaining our warehouses that are able to handle shipment to web customers, so
buy keeping the warehouses we are full filling the order. Through this we have full over
fulfillment process. As we are starting a new business, we have kept limited numbers of
warehouses in limited city in limited areas.
7.5.2. Outsourcing warehouse model:
In this we are using logistic specialist wix.com which do the work of shipping web order. so
once an order comes into our site it is automatically transmitted to its warehouse and directly
shift to the customer through private supply chain
We also have fulfillment intermediaries that will take care of all back office operation such
that the process order direct order to supplier, keep updating customer on their order progress
and handling product return and cancellation.
7.5.3 Time Slots for delivery
We have different time slots depending upon demand all the customers. They are categorized as:
2HOUR
This is the best time slot provided by us and it will deliver the products within 2 hours after the
order is placed. In this category we will not provide any discounts as the service level is highest in
this category. This will target mostly the working people who do not have time and they just order
when they want any product.
6HOUR
Customers will get a certain minimum amount of discount in this time slot. This will target the
family based customers who plan to make something few hours later and need the products in a
few hours of time. They will be generally middle sized customers.
1Day
Quite a good amount of discount would be given to these customers as they are just directly
reducing good amount of transportation cost i.e. from warehouse to warehouse or from warehouse
to customers. These customers also the family based customers but their demand is slightly flexible
than the previous time slot. This will target customer who are middle- sized and above.
2Day
This will mainly target the upper segments that are used to keep product stock. They will be
benefited maximum discounts as at the transportation costs are lest here because time to deliver
products is too large. In this much time several orders can be seen in the places round the ordered
places.
7.5.4. Methods of payment
Cash payment: A regular cash payment is when the customer buys the product from the physical
store, not from an online store. It is the most common way of paying in business-to-consumer
transactions.
Invoice: Payment by invoice is used mainly in business-to-business transactions where the seller
has full trust on the customer’s ability to pay.
E-invoice: E-invoice is an invoice that shows up in your online bank service. Nowadays in
Bangladesh it is possible to get all your invoices electronically to your online bank service. This
is very handy if you do not wish for the traditional paper invoices to your home.
Cash on delivery: Cash on delivery is a safe payment option for the customer. The customer is
able to wait for the product to arrive for example at a nearby postal office, from which they will
collect the product and pay as they receive it. There is an extra fee that is charged though with this
option, which makes it a more expensive option compared to for example the option of paying by
credit card. It is also not so convenient for the seller, because the payment is done afterwards.
Credit card: Credit card is the most common way to pay for online purchases. It is also very safe,
but some people still find it hard to trust this payment option. As we have found out that security
is one of the challenges in e-business, credit card payment is a bigger step for many people to take,
mainly because you have to give your credit card information to someone or something else, in
this case the web store. Good option for the seller too, because the payment is done in advance.
Bank’s online payment service: Last but not least, there is the bank’s online payment service. It
is a very convenient way for the customer to pay the service since they are logging in to their own
bank by a personal id and a password, which is already familiar to them. This is also a payment
option, which is convenient also for the seller since the payment is done in advance. It is probably
one of the most common ways to pay in Finnish online stores.
8. Web Plan
Deshi-foods, our business will be used our website as our catalog and ordering device. The website
will be a complete product offering as well as to provide company information. The website will
be designed with simplicity in mind. It is imperative that customers are able to navigate through
out the website with no problem. Deshi-foods will have both website and mobile site for mobile
devices. The superfast delivery should be obvious on them. A 16-hour hot line will be offered on
the website to remedy and problems that customers encounter.
8.1 Website marketing Strategy
The website will be marketed through search major engine such as Yahoo! and google. In addition
to advertisement on search engines, Deshi-food.com will advertise with website that have similar
customer demographics like Seamless and direct fresh bd online food delivery websites. The cost
of Internet Advertising has dropped significantly with the collapse of so many dot-coms that it has
become quite cost effective.
8.2 Development Requirements:
We hire the expertise web design agency,Wix.com. Wix.com is one of the top 10 best media
agency in the world. They will be responsible for site development including strategy &
consulting, online marketing, web and mobile apps designs.
8.3 Web Design:
Link: https://mdabubakarsiddik2.wixsite.com/deshi-food
Figure: Home page of our Website
8.3.1 Web design Plan:
 Selling deshi-foods online is different from selling electronics or appears. Deshi-foods
are ‘need’ while electronic etc. are ‘Want’. This is the reason why ‘deshi-foods’ are least
sold in e-commerce model compared to other products.
 Innovative front and design which would revolutionize the front and design of e-
commerce websites.
 Innovative options like ‘you might have run out of’ and ‘Most ordered by you’ makes
shopping very quick.
 A striking feature in the website would be “Multiple products search “. Customers can
enter whole list of items he/she would like to buy. The site will be designed to show the
search result for these items one by one. This makes the shopping hassle free unlike other
e-commerce website. The search will be designed for giving correct search results even
if the users types the word in local language with English script.
 Build social media like twitter, Instagram. Placing Facebook profile pictures to increase
the loyalty factors. It gives a feel of being a part of store.
Link: https://www.facebook.com/deshifoodsbu/
Figure: Facebook Page
8.3.2 Web design:
We did a small research and come to the following conclusion:
 Deshi-foods are somethings that people buy on a regular basis and they are a necessity
for daily life. Therefore, people do not tend to spend too much time on buying groceries
as they spend on other products.
 When people come to our website, they are well aware of what want to buy and do really
prefer to compare the features of the other product.
 If we implement a regular ‘e-commerce website design for the Deshifood.com, it will
give a very bad user experience. Why? Because the total number of products on the
website and the number of products purchased per order too high and people have to
search for all the items all the time.
 Many people enjoy to a super market just for the experience of shopping. But if customer
is buying online in regular E-commerce model, customers would get lost in searching for
the product because you don’t know the name of the product, sometimes you don’t know
the product category, sometimes you don’t know the quantity unless you see it etc. So,
we want to give a real-life shopping experience on the website. We realized that there are
about 4 levels of products categories in Deshifood.com.
Parent category-> Sub category-> Product type-> product;
After a rigorous brainstorming session on the user interface and attractiveness of the
front-end designs, we came with a great idea of creating an online virtual super market
that has the potential to revolutionize the designs of E-commerce websites.
What will this design to solve?
 Trying to bring back the ‘fun’ factor in shopping, which is lost in other E-commerce sites
and even in offline shopping.
 Mimicking a real supermarket has lots of advantages. The design is close to being a virtual
store than a random web site.
 In the pop-up, we also included the links to other sub categories in that parent category
so that the user need not switch back and forth frequently, again increasing the speed of
purchase.
This is how our web design will look like:
9.FINANCIAL PLAN
Deshifood.com is a great online food shopping website. We do have two warehouse over the whole
Barisal City to make sure we can provide the efficient service for our customers. What’s more, we
also have the great workmate with some professional delivery companies to save our investment.
9.1. Capital Estimation
Fixed Asset:
1. Our initial setup would be based or renting official spaces rather than buying it or building
our own setup. This adds to our flexibility. We plan to have the official site in Barisal. The
rental site will cost about 600,000 per year.
2. To provide better service with our customers, we need to get a research and development
center for our business as we mentioned above. We are going to have a center. It will
technically serve as the development and technological setup, server location and also
maintenance site.
3. Warehouse: We have 3 warehouse in Barisal Sadar, Dhaka Uttara, Chittagong Bondortila.
4. Transportation: We are outsourcing this business to Fast Deliver Company. Nowadays,
since we can serve our capital investments by this way, we are in this way.
5. Human resources: We plane to have a CEO, CFO, CSO, CMO, COO, CTO all posted in
the corporate center comprising the top management team. We have 5 workers at each site
to receive the orders ordered by customers. They will get all the products ready and give
that to deliver the company to deliver our food.
6. Technology Setup: Since we are in the E-commerce business, we need to set up our
website and search for our customers. We need to have a good SEO to satisfy our
customers.
7. Miscellaneous: This includes other costs, maintenance inventory etc.
9.2. Budgeting
Investment Number Time(month) Total(Tk)
Corporate Office 1 12 6,00,000
Warehouse 3 12 6,00,000
Service center 3 12 72,000
Transportation 5,00,000
Warehouse Manager 3 12 5,40,000
Employees 15(5*3) 12 90,000
Server 1 1 30,000
Internet 1 60,000
Software 1 20,000
Telephone 1 5,000
Maintenance 30,000
Inventory 25,000
Total =25,72,000
9.3. Fund Sourcing
We plan to go for bank loans, venture capitalists and individual contribution for risk mitigation.
 Owners Contribution =10,72,000
 Bank Loan =15,50,000
Profit estimation: in Tk
9.4. Future growth strategy
We plan for constraint growth by putting the part of the profit constantly for future goals and for
sustenance.
9.5. Exist strategy
We can plan for the following exist strategies:
 IPO-Initial Public Offering
 Merger with an existing online retail business in a vertical such as amazon
 Acquisitions –By some other online retail business in the same domain. Example:
Peapod.
0
200000
400000
600000
800000
1000000
2017 2018 2019 2020
500000
900000
600000
450000
Profit Estimation
Profit
10.Conclusion:
Online-business has become a part of everyday life in the world of business. Low starting costs
and the rapid growth of the usage of the Internet as well as the growth of online shopping,
encourages more and more companies to go online. It is a fact that nowadays almost each and
every modern company has a web site and it is considered almost as a necessity. The possibility
of global reach through the World Wide Web is fascinating among with the fact that all companies
online are accessible all over the world. It is also interesting to see as the shopping behavior of
consumers is transferring more online every day. The services and that companies provide through
the Internet are easily accessed without having to leave home, making the shopping experience as
convenient as possible. The idea behind the concept of “DESHI FOOD.COM” is to take advantage
of the fact that online shopping is growing rapidly. By using different techniques in marketing,
analyzing the benefits of online-business and applying all that in a business plan is a way that a
small business can gain competitive advantage in Bangladesh among the large chains. Market and
competitors were analyzed in different ways to create a clear picture of the market that “DESHI
FOOD.COM” would be entering. All in the name of minimizing the risks, since entrepreneurship
is always a risk alone. This plan provides theoretical and practical information on how to develop
a business plan for any online company.

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A report on deshi food.com

  • 1. A REPORT ON DESHI-FOOD.COM An Online Based Business Idea Group: Inner Peace Department of Management Studies University of Barisal
  • 2. Table of Contents 1.Executive summary .........................................................................................................................4 2.Introduction....................................................................................................................................5 2.1.Background of the study:..........................................................................................................5 2.2.Objective of the Report:............................................................................................................5 3.Business Idea: .................................................................................................................................6 3.1.Vision:......................................................................................................................................6 3.2.Mission: ...................................................................................................................................6 4.Background information..................................................................................................................7 4.1.Online-Business:.......................................................................................................................7 4.2.The 4 Stages of Developing Online Business service:..................................................................7 4.3.Online Shopping in Bangladesh:................................................................................................9 4.4.Advantages of DESHI-FOOD.COM:...........................................................................................10 4.5.Challenges of DESHI-FOOD.COM .............................................................................................11 5. MARKETING:................................................................................................................................12 5.1.Market Segmentation:............................................................................................................12 5.2.Marketing Strategy:................................................................................................................12 5.3.SWOT ANALYSIS: ....................................................................................................................12 5.3.1.Strength...........................................................................................................................12 5.3.2.Weakness ........................................................................................................................13 5.3.3.Opportunities ..................................................................................................................13 5.3.4.Threat:.............................................................................................................................13 5.4.Sales Strategy:.....................................................................................................................14 6. Business strategy .........................................................................................................................14 6.1 The general environment........................................................................................................14 6.1.1 PESTEL ANALYSIS .............................................................................................................14 6.1.2 PORTER’S 5 FORCES MODEL .................................................................................................15 7. Operation: ...................................................................................................................................17 Business to Business(B2B): ...........................................................................................................17 Business to customers(B2C)..........................................................................................................17 7.1 Value proposition: ..................................................................................................................17 7.3 Business model:......................................................................................................................18
  • 3. 7.4 Inventory management: .........................................................................................................18 Fluctuation inventory..............................................................................................................19 Lot size inventory:...................................................................................................................19 Cross docking..........................................................................................................................19 Refresh inventory ...................................................................................................................19 Transportation cost:................................................................................................................19 Warehouse to warehouse: ......................................................................................................19 Warehouse to customer..........................................................................................................19 7.5 Operational model:.................................................................................................................19 7.5.1 Stock it yourself model:....................................................................................................19 7.5.2 Outsourcing warehouse model:........................................................................................20 7.5.3. Time Slots for delivery .....................................................................................................20 7.5.4.Methods of payment .......................................................................................................21 8. Web Plan .....................................................................................................................................22 8.1 Website marketing Strategy....................................................................................................22 8.2 Development Requirements: ..................................................................................................22 8.3 Web Design: ...........................................................................................................................23 8.3.1 Web design Plan: .................................................................................................................23 8.3.2 Web design:.........................................................................................................................25 9.FINANCIAL PLAN ...........................................................................................................................27 9.1 Capital Estimation...................................................................................................................27 9.1.2 Fund Sourcing......................................................................................................................29 9.1.3 Future growth strategy ........................................................................................................29 9.1.4 Exist strategy .......................................................................................................................29 10.Conclusion: .................................................................................................................................30
  • 4. 1.Executive summary “DESHI FOOD.COM” focuses on the online grocery retail business. The objective of this Online- business is to make a marketing-based business plan of a company, which sells “DESHI FOOD” through online. It provides an insight on online-business and different aspects of marketing related to the concept of an online store. It also discusses the theory of marketing and online-business combined with the practice of a business plan. This plan is for the people who are interested in online-business especially from a marketing point of view and who are searching for information on how to start an online store. This plan begins with the presentation of the business idea followed by the mission and the vision of the company. The following part provides background information on online-business and ecommerce and some information on the online shopping behavior of the people in Bangladesh. This section also covers the advantages and challenges of online-business. The next section is the largest for it is the marketing section of the online business. This section provides theoretical information on marketing and marketing strategies. It will go through such things as market segmentation and definition, followed by the marketing strategy containing, SWOT analysis, competitor analysis, a marketing mix and the generic strategies. The last section of this plan is very practical as it is constructed of information on logistics and finally a rough budget in the end. We believe “DESHI FOOD .COM” as a disruptive technology destined to replace the traditional way of trading with Deshi and direct groceries shopping experience in Bangladesh.
  • 5. 2.Introduction 2.1. Background of the study: The study is necessary in fulfillment of our course ‘Management Information System’, course code: ‘MGT 321’ assigned by our honorable course instructor ‘Tazizur Rahman’, Assistant professor of department of management studies, University of Barisal. Report topic is ‘ONLINE BUSINESS PLANNING’. It was given to our group by our course instructor for the betterment of our skills and enhancement of our reporting and field work capability. After completion of this study we will be more experienced and will be more confident to do any professional job. On doing this study we were backed up by our course instructor. 2.2. Objective of the Report:  The objective of this report was to give a detailed insight of the marketing strategy of “DESHI FOOD.COM” starting from its inception till today in Bangladesh. Primary Objective: of this report is to use the theoretical concepts of Marketing in practice on online and to provide fresh deshi food to our target and potential customers Secondary Objective:  To flawlessly serve deshi food with low cost and quick delivery to our customers.  To build a stable and effective network between distributors, wholesalers, retailers and the household customers.  To build an effective sustainable technology  To be our customers the best value or money and quickest service.
  • 6. 3.Business Idea: In a nutshell, the idea is to put up an online store. The name of our business idea is “DESHI FOOD.COM. By ``DESHI FOOD.COM’’ we provide different types of food such as deshi meat, deshi cake, deshi vegetable deshi fish and deshi fruit to our target customer through online with affordable prices, straight to the consumers. We receive online order and delivery respective food items from various channels. Basically we collect our product from local area, own firm and direct supplier. By providing our service we get customer satisfaction. Customer also get quality product, frees product by their time consuming. We can participate in economic development by collecting, selling our product within national boundary from our business. 3.1. Vision:  During the first year of operation we want to gain a good reputation, through affordable prices, fast delivery and great customer service.  Accomplish a steady cash flow and long term business partners. 3.2. Mission:  Our mission is to provide high quality with lowest price products along with doorstep delivery. Deshi Food.com the taps the unattended needs of the people who do not find traditional trading convenient due to many unavoidable reasons. Our foremost mission is to provide convenience to the customers followed by the best value for money backed by quality and satisfaction.
  • 7. 4.Background information 4.1. Online-Business: In order to understand e-business and this business plan on an online store, it is good to have a closer look at the background of e-business and the developing of e-commerce. Definitions: We will start off with some definitions by Jennifer Rowley from her book “E‐business, Principles & Practice”. “E-commerce is doing business electronically across the extended enterprise. It covers any form of business or administrative transaction or information exchange that is executed using any information and communication technology. Morath (2000) views ecommerce as often taking a narrow perspective limited to specific initiatives, such as sales over the Internet, procurement or payment. “E-business is a wider concept that embraces all aspects of the use of information technology in business. It includes not only buying and selling, but also servicing customers and collaborating with business partners, and often involves integration across business processes and communication within organization. 4.2. The 4 Stages of Developing Online Business service: Stage Characteristics Website Functionality 1.Contact  Promote corporate image.  Publish corporate information.  Offer contact information Content 2.Interact  Embed information exchange.  Target marketing effort. Communication 3.Transact  Online transactions.  Catalogue order/fulfillment.  Interaction with trading partners. Commerce
  • 8. 4.Relate  Two-way customer relationships.  Full integration of Internet capability into the business.  Service interface integrated with delivery and other business operations. Community First stage: The first stage is a very basic level and it is basically only about making a company appear also on the Internet in addition to its physical location. It offers the customer some information on the company and gives the company a chance to promote itself online. Contact information and for example opening hours can be displayed on a stage one website. Second Stage: The second stage is a bit more developed stage. It provides the customer a chance to interact with the company through the website. Target marketing and for example a company news section can be added to this type of a website. It also requires updates and more maintenance from the company’s behalf compared to stage one. Third Stage: The third stage differs a lot from the first two stages, because this is the stage where the money starts to move. It provides the customer a possibility to order products or a catalogue. The transactional possibilities make this stage only one step away from the final stage. Fourth Stage: The fourth stage provides a full integration of Internet capability in to the business. It offers the two-way relationship between the customer and the company, both parties providing each other with some information. This can be on the businesses behalf for example product details, price details, business process details and brand values and messages. On the customer’s behalf, this could mean order details, customer details, billing and shipping addresses and order placement
  • 9. confirmation.6 This is the stage where Hockeystore.fi needs to be in order breakthrough in Bangladesh. 4.3. Online Shopping in Bangladesh: There are a lot of e-Commerce websites in Bangladesh selling products online, more online shopping websites coming. Here is a list of top 14 largest e-Commerce sites in Bangladesh. 1. AjkerDeal.com 2. daraz.com.bd 3. rokomari.com 4. priyoshop.com 5. bagdoom.com 6. kaymu.com.bd 7. othoba.com 8. chaldal.com 9. iferi.com 10. akhoni.com 11. buymobile.com.bd 12. branoo.com 13. coxsbazareshop.com 14. foodpanda.com
  • 10. 4.4. Advantages of DESHI-FOOD.COM: Global promotion: “DESHI-FOOD.COM” offers a chance to promote our products globally through the Internet. Online Business as “E-business” has made it possible for companies to globalize their business much faster than before. The Internet provides a chance for users around the world to access our web site, even if our business operations are only local. The web page is visible online to anyone, anywhere, which provides our business the reach that wasn’t possible before. In addition, it gives smaller businesses to compete with other companies on the same ground locally and internationally, which is huge advantage, but also a threat. Low costs: The costs of running an e-business are relatively smaller than in running a regular business. First of all, the operating costs of our business are low. Our online business does not need large offices and warehouses and it is not tied to a certain location, thus reducing infrastructural costs. Also, the inventory costs and labor costs are minimal, because there is no need for a large staff. Not only does the e-business save money, but it also saves time. Our online store is functioning on its’ own without being behind the counter all the time. Also since all the action happens through the Internet, the transactions between the buyer and the seller happen faster.12 Marketing costs are also reduced in e-businesses. Direct marketing to the customer can be done via e-mail. Many online shops have a loyalty program, which encourages the customer to shop at the same place again by rewarding the customer with, for example, discount coupons/codes. This can be as well done via e-mail. Convenience: Convenience is a great advantage that comes with online shopping. For example, our online store is open 16/7 and is accessible from any location with and Internet connection. In other words, e-business removes the restrictions of availability and location. It also allows the customer to shop without leaving home which saves him the effort of dressing up and physically moving from a place to another just for the possibility to go shopping. E-business also provides the customer with the option to keep their product in the electronic shopping cart if they don’t feel like purchasing the product right away. The possibility of comparing similar products in different web stores is also a matter of convenience. There is no need to walk to the other store wince it is
  • 11. one click away. This is also a threat for the online shops, because it is extremely easy for the customer to buy the product from another store. Customer service: Customer service is one of the key elements and one of the best advantages that an e-business can offer. The customer service is better and more personal when the customer can be in touch with the company through the Internet, without having to leave home. Also, updating the web site with new information on products, prices and availability is easy and fast.8 4.5. Challenges of DESHI-FOOD.COM Security: One of the biggest problems in e-business and online shopping is the security issues. To be more specific, the problems are in ensuring the security of data transaction. The reason why security is challenge is in e-business, because the transactions happen through the Internet and because of the TCP/IP (Transmission Control Protocol / Internet Protocol) protocol that governs the communication. These protocols are open protocols, which means that when the data is transmitted from a computer to another, a third party can intercept it. This brings us to the reason why we have encryption. Trust: In addition, there are the trust issues. Online shopping is still considered to be a bit shady by some people, because of trust. The customer may think: Will I ever get my products? Where does my money go? How is my information used? These are all questions that make the gap between ordering and not ordering, online. Competition: Competition is a difficult one, because it is both an advantage and a threat. This is why we put it last in the list of challenges. For a small start-up business, the Internet provides competitive advantage, because on the Internet, the store is almost on an equal level with the online stores of big corporate chains. It is also a challenge, because the costs of putting up an online store are very low, which means that the entry barrier is extremely low for new companies. Shortly, everyone is almost in the same position, but the competition is tough.
  • 12. 5. MARKETING 5.1. Market Segmentation: The purpose of this section is to establish the division of different market groups with similar needs and wants to a market segment, which is suitable for “DESHI FOOD”. For the concept of an online store selling Deshi food, the key elements in this market segmentation are: gender and interests. In short the target market is: boys and men of all ages, with an interest towards Deshi Food. We have identified the customers for our business:  Customers are aged between 23 years and above.  Customers whose house hold income is >30000 per month.  If any customers are having dual income household.  Customer/households with children.  Average commute time to work of customers.  Customers number of households with internet access and its awareness.  Customers and adults with credits access. 5.2. Marketing Strategy: In order for “DESHI FOOD.COM” to be successful, it will need a functional marketing strategy. A marketing strategy is a plan that will measure the resources of the company and apply it to increase the sales and gain a competitive advantage among the competitors. It involves several market analyses, which will provide information for the actual strategy. There are many ways of executing a marketing strategy, but this is the way that in my opinion is the most suitable for this type of a company. A marketing strategy consists of SWOT analysis, which concentrates on the internal and external environments, in which the company is operating. 5.3. SWOT ANALYSIS: 5.3.1. Strength  DESHI FOOD.COM has strong financial assets
  • 13.  DESHI FOOD.COM guarantees to sell product with quality at lowest price  DESHI FOOD.COM uses advance food technology  DESHI FOOD.COM has strong relationship with local stores and its distributors  DESHI FOOD.COM approach is very innovative  DESHI FOOD.COM has excellent customer service  DESHI FOOD.COM has high standard for cleanness 5.3.2. Weakness  Since we are new, so we might need some time and cost for entering the market  We focus on competitive advantage not cost leadership by selling Perishable products. This could make us slow to diversify into another (unperishable product). 5.3.3. Opportunities  We can get the sweet spot in the market. Market opportunity analysis is complicated. There are many competitors and even some technology which are not right technology currently running in the market. We clarify differentiate our business in the eyes of our potential customers or clients. We focus our team on delivering the promise of the previously unmet promise by our competitors, helping to improve our internal performance. 5.3.4. Threat  Shopno is very well known in Bangladesh. They have good innovation and very loyal customer.  Mina bazar was created a bulk buying strategy, believing customer would order large, economical quantities.  Direct freshbd is another threat for our business.
  • 14. 5.4. Sales Strategy: Deshi-foods will process 90% of its sales online through a secure socket layer (SSL), and secure Internet connection. All orders will be charged to Visa, Master card. By ensuring that the website is easy to navigate as well as simple to order from, deshi-foods will be ensuring that people who make it to the website will end up purchasing something. This last point is key, Deshi-foods should list merchandise that people most want and prevent the order outside of the metropolitan area to keep the high customer satisfaction. 6. Business strategy 6.1. The general environment 6.1.1 PESTEL ANALYSIS PESTEL FACTORS STRATEGY Political Deshi food .com plans to increase delivery charges from customers to financial coupe and short out the parking violation problems. Economical Safe management cost, keep balance pressure on customers. Social Creating private sector jobs, Deshi food.com will make sure that surplus food will be giving to Bangladeshi homeless and those who need. Technological Deshi food .com will maintain its advanced technology and also seek innovating technology to keep better technology the competitors. Environmental Use eco-friendly production system. Legal Deshi food .com products are tasted by in house laboratory which ensure the facilities adhered to BSTI guidelines. It will disclose its financial statement publically and pay the taxes regularly, not taking any step against the regulations.
  • 15. 6.1.2 PORTER’S 5 FORCES MODEL It is important to analyze the completive nature of the online grocery industry in order to assess the position of Deshi food .com. The Porter’s 5 forces tool to enable to make strategic decisions Forces Strength Threat of new entrants The e-commerce grocery entrants require a big capital, experiences, understanding the advanced technology system, earing online grocery and access to suppliers and distributors. low Threat of substitute The local suppliers, distributors and corner stores are other options of customers to buy Deshi food. But Deshi food.com is convinced that customers will get the best shopping experience with Deshi food.com compare to other competitors. Low Power of suppliers Deshi food .com suppliers has good brand in market, so they can easily access with the product producers. Medium
  • 16. Power of buyers In the modern era, especially in divisional area, customers have easy access to everything with internet so the information of price and product is opened widely. High Completive Rivalry The strongest competitors in Deshi food, it has advanced technology .it is also well known and leading in the market. However, they sell the product at quite high cost. Medium 6.1.3. Competitive advantage According to the traditional market and its approach, we are not having any direct competitors, even if they are provider of same products. Since we are providing approaching and attracting with something new strategy. In the meantime, we are providing the facilities in new but easily available and handle technology and platform to do business with us. even if there are huge competitors, we are providing be best and secure services to the customers at their ease. Even since customers seek specific benefits, so buy assessing the current player’s performance in meeting the customer standard will provide an indication of the potential for our company to move in and win.
  • 17. 7. Operation: Our operations are carried out according to two approaches: Business to Business(B2B): In this category we are develop to one to one customer relationship. Here customer are the whole seller & retailer. When it comes to business it does not account for a single decision making unit. Because there is a great difference between selling to an individual & selling to a business. Our business is composed to a number of distinct individuals & many difference people will likely to have an influence on the decision making process. We are maintaining our relationship with the whole seller, as customer to go deeper to maintain relationship with individual decision makers. We are not viewing our success just in terms of how many new customers we can acquire but in terms of how deeply we can penetrate our current customer accounts. We are reducing our inventory by establishing a close or communication process with the supplier n terms of input needs and procurement time frames. Business to customers(B2C) As in this category our consumers don’t care how the order is fulfilled so we have design our own supply chain. In this category we are selling hundreds of thousands, we are keeping our eye on the statistical analysis of our customer base to figure out what’s going on at any point in the time with any particular types of customer. 7.1 Value proposition: Value propositions that “DESHI FOOD.COM” has is the go-green campaign. The delivery truck route reduced CO2 emissions by at least half in their model compare to car trips.
  • 18. 7.2 Milestones: “DESI FOOD’’ will have several milestones early on:  Business plan completion. This will be done as guidance for the organization. This will be an indispensable tool for the ongoing performance and improvement of the company.  Office and ware house set up website completed  Complete hiring of initial company personnel’s 7.3 Business model: Since our business is selling foods to the customer, it is a B2C model. We do need pay attention in detail when we are doing retailing on the website.as in this category our consumers do not care how the order is fulfilled so we have design our own supply change. We keep recording how many inventories we sold out monthly to figure out how many inventories we should keep in hand. It helps us with how we should keep our supply chain. 7..4 Inventory management: This is a key term in term of cost effectiveness. It is the direction and control of activities with the purpose of getting the right inventories in the right place at the right time in the right quantity in the right forms at the right cost. We optimize our supply chain by keeping the inventory very low by using certain technique such as….
  • 19.  Fluctuation inventory: This introduce in our inventory management with the purpose of preventing disruption in delivery to customers. we have maintained a buffer stock.  Lot size inventory: we are purchasing items in quantity greater than needed to take advantage of quantity discount, to reduce shipping and set up cost  Cross docking: in this strategy we are moving our goods directly from our warehouses to consumers. This distribution strategy we have applied in which the customer and distributors are supplied by central warehouse.  Refresh inventory: We are constantly refreshing our inventories through received order and products coming from the distributors.  Transportation cost: This includes the cost of moving the items from the warehouse to warehouse & warehouse to consumers. The overall transportation cost is 31% of the capital estimation.  Warehouse to warehouse: It includes cost of moving the items from one warehouse to other. This will mainly occur when the cost of moving goods from distributor to warehouse is high than the cost of moving product among the warehouse.  Warehouse to customer: This includes the cost of shipping the products from the warehouse to the customers. If the time slot is in one or two days, then we will ship the items directly from the distributors using the cross docking strategy. 7.5 Operational model: 7.5.1 Stock it yourself model: In this we maintaining our warehouses that are able to handle shipment to web customers, so buy keeping the warehouses we are full filling the order. Through this we have full over fulfillment process. As we are starting a new business, we have kept limited numbers of warehouses in limited city in limited areas.
  • 20. 7.5.2. Outsourcing warehouse model: In this we are using logistic specialist wix.com which do the work of shipping web order. so once an order comes into our site it is automatically transmitted to its warehouse and directly shift to the customer through private supply chain We also have fulfillment intermediaries that will take care of all back office operation such that the process order direct order to supplier, keep updating customer on their order progress and handling product return and cancellation. 7.5.3 Time Slots for delivery We have different time slots depending upon demand all the customers. They are categorized as: 2HOUR This is the best time slot provided by us and it will deliver the products within 2 hours after the order is placed. In this category we will not provide any discounts as the service level is highest in this category. This will target mostly the working people who do not have time and they just order when they want any product. 6HOUR Customers will get a certain minimum amount of discount in this time slot. This will target the family based customers who plan to make something few hours later and need the products in a few hours of time. They will be generally middle sized customers. 1Day Quite a good amount of discount would be given to these customers as they are just directly reducing good amount of transportation cost i.e. from warehouse to warehouse or from warehouse to customers. These customers also the family based customers but their demand is slightly flexible than the previous time slot. This will target customer who are middle- sized and above. 2Day This will mainly target the upper segments that are used to keep product stock. They will be benefited maximum discounts as at the transportation costs are lest here because time to deliver
  • 21. products is too large. In this much time several orders can be seen in the places round the ordered places. 7.5.4. Methods of payment Cash payment: A regular cash payment is when the customer buys the product from the physical store, not from an online store. It is the most common way of paying in business-to-consumer transactions. Invoice: Payment by invoice is used mainly in business-to-business transactions where the seller has full trust on the customer’s ability to pay. E-invoice: E-invoice is an invoice that shows up in your online bank service. Nowadays in Bangladesh it is possible to get all your invoices electronically to your online bank service. This is very handy if you do not wish for the traditional paper invoices to your home. Cash on delivery: Cash on delivery is a safe payment option for the customer. The customer is able to wait for the product to arrive for example at a nearby postal office, from which they will collect the product and pay as they receive it. There is an extra fee that is charged though with this option, which makes it a more expensive option compared to for example the option of paying by credit card. It is also not so convenient for the seller, because the payment is done afterwards. Credit card: Credit card is the most common way to pay for online purchases. It is also very safe, but some people still find it hard to trust this payment option. As we have found out that security is one of the challenges in e-business, credit card payment is a bigger step for many people to take, mainly because you have to give your credit card information to someone or something else, in this case the web store. Good option for the seller too, because the payment is done in advance. Bank’s online payment service: Last but not least, there is the bank’s online payment service. It is a very convenient way for the customer to pay the service since they are logging in to their own bank by a personal id and a password, which is already familiar to them. This is also a payment
  • 22. option, which is convenient also for the seller since the payment is done in advance. It is probably one of the most common ways to pay in Finnish online stores. 8. Web Plan Deshi-foods, our business will be used our website as our catalog and ordering device. The website will be a complete product offering as well as to provide company information. The website will be designed with simplicity in mind. It is imperative that customers are able to navigate through out the website with no problem. Deshi-foods will have both website and mobile site for mobile devices. The superfast delivery should be obvious on them. A 16-hour hot line will be offered on the website to remedy and problems that customers encounter. 8.1 Website marketing Strategy The website will be marketed through search major engine such as Yahoo! and google. In addition to advertisement on search engines, Deshi-food.com will advertise with website that have similar customer demographics like Seamless and direct fresh bd online food delivery websites. The cost of Internet Advertising has dropped significantly with the collapse of so many dot-coms that it has become quite cost effective. 8.2 Development Requirements: We hire the expertise web design agency,Wix.com. Wix.com is one of the top 10 best media agency in the world. They will be responsible for site development including strategy & consulting, online marketing, web and mobile apps designs.
  • 23. 8.3 Web Design: Link: https://mdabubakarsiddik2.wixsite.com/deshi-food Figure: Home page of our Website 8.3.1 Web design Plan:  Selling deshi-foods online is different from selling electronics or appears. Deshi-foods are ‘need’ while electronic etc. are ‘Want’. This is the reason why ‘deshi-foods’ are least sold in e-commerce model compared to other products.  Innovative front and design which would revolutionize the front and design of e- commerce websites.  Innovative options like ‘you might have run out of’ and ‘Most ordered by you’ makes shopping very quick.  A striking feature in the website would be “Multiple products search “. Customers can enter whole list of items he/she would like to buy. The site will be designed to show the search result for these items one by one. This makes the shopping hassle free unlike other
  • 24. e-commerce website. The search will be designed for giving correct search results even if the users types the word in local language with English script.  Build social media like twitter, Instagram. Placing Facebook profile pictures to increase the loyalty factors. It gives a feel of being a part of store. Link: https://www.facebook.com/deshifoodsbu/ Figure: Facebook Page
  • 25. 8.3.2 Web design: We did a small research and come to the following conclusion:  Deshi-foods are somethings that people buy on a regular basis and they are a necessity for daily life. Therefore, people do not tend to spend too much time on buying groceries as they spend on other products.  When people come to our website, they are well aware of what want to buy and do really prefer to compare the features of the other product.  If we implement a regular ‘e-commerce website design for the Deshifood.com, it will give a very bad user experience. Why? Because the total number of products on the website and the number of products purchased per order too high and people have to search for all the items all the time.  Many people enjoy to a super market just for the experience of shopping. But if customer is buying online in regular E-commerce model, customers would get lost in searching for the product because you don’t know the name of the product, sometimes you don’t know the product category, sometimes you don’t know the quantity unless you see it etc. So, we want to give a real-life shopping experience on the website. We realized that there are about 4 levels of products categories in Deshifood.com. Parent category-> Sub category-> Product type-> product; After a rigorous brainstorming session on the user interface and attractiveness of the front-end designs, we came with a great idea of creating an online virtual super market that has the potential to revolutionize the designs of E-commerce websites. What will this design to solve?  Trying to bring back the ‘fun’ factor in shopping, which is lost in other E-commerce sites and even in offline shopping.  Mimicking a real supermarket has lots of advantages. The design is close to being a virtual store than a random web site.
  • 26.  In the pop-up, we also included the links to other sub categories in that parent category so that the user need not switch back and forth frequently, again increasing the speed of purchase. This is how our web design will look like:
  • 27. 9.FINANCIAL PLAN Deshifood.com is a great online food shopping website. We do have two warehouse over the whole Barisal City to make sure we can provide the efficient service for our customers. What’s more, we also have the great workmate with some professional delivery companies to save our investment. 9.1. Capital Estimation Fixed Asset: 1. Our initial setup would be based or renting official spaces rather than buying it or building our own setup. This adds to our flexibility. We plan to have the official site in Barisal. The rental site will cost about 600,000 per year. 2. To provide better service with our customers, we need to get a research and development center for our business as we mentioned above. We are going to have a center. It will
  • 28. technically serve as the development and technological setup, server location and also maintenance site. 3. Warehouse: We have 3 warehouse in Barisal Sadar, Dhaka Uttara, Chittagong Bondortila. 4. Transportation: We are outsourcing this business to Fast Deliver Company. Nowadays, since we can serve our capital investments by this way, we are in this way. 5. Human resources: We plane to have a CEO, CFO, CSO, CMO, COO, CTO all posted in the corporate center comprising the top management team. We have 5 workers at each site to receive the orders ordered by customers. They will get all the products ready and give that to deliver the company to deliver our food. 6. Technology Setup: Since we are in the E-commerce business, we need to set up our website and search for our customers. We need to have a good SEO to satisfy our customers. 7. Miscellaneous: This includes other costs, maintenance inventory etc. 9.2. Budgeting Investment Number Time(month) Total(Tk) Corporate Office 1 12 6,00,000 Warehouse 3 12 6,00,000 Service center 3 12 72,000 Transportation 5,00,000 Warehouse Manager 3 12 5,40,000 Employees 15(5*3) 12 90,000 Server 1 1 30,000 Internet 1 60,000 Software 1 20,000 Telephone 1 5,000 Maintenance 30,000 Inventory 25,000 Total =25,72,000
  • 29. 9.3. Fund Sourcing We plan to go for bank loans, venture capitalists and individual contribution for risk mitigation.  Owners Contribution =10,72,000  Bank Loan =15,50,000 Profit estimation: in Tk 9.4. Future growth strategy We plan for constraint growth by putting the part of the profit constantly for future goals and for sustenance. 9.5. Exist strategy We can plan for the following exist strategies:  IPO-Initial Public Offering  Merger with an existing online retail business in a vertical such as amazon  Acquisitions –By some other online retail business in the same domain. Example: Peapod. 0 200000 400000 600000 800000 1000000 2017 2018 2019 2020 500000 900000 600000 450000 Profit Estimation Profit
  • 30. 10.Conclusion: Online-business has become a part of everyday life in the world of business. Low starting costs and the rapid growth of the usage of the Internet as well as the growth of online shopping, encourages more and more companies to go online. It is a fact that nowadays almost each and every modern company has a web site and it is considered almost as a necessity. The possibility of global reach through the World Wide Web is fascinating among with the fact that all companies online are accessible all over the world. It is also interesting to see as the shopping behavior of consumers is transferring more online every day. The services and that companies provide through the Internet are easily accessed without having to leave home, making the shopping experience as convenient as possible. The idea behind the concept of “DESHI FOOD.COM” is to take advantage of the fact that online shopping is growing rapidly. By using different techniques in marketing, analyzing the benefits of online-business and applying all that in a business plan is a way that a small business can gain competitive advantage in Bangladesh among the large chains. Market and competitors were analyzed in different ways to create a clear picture of the market that “DESHI FOOD.COM” would be entering. All in the name of minimizing the risks, since entrepreneurship is always a risk alone. This plan provides theoretical and practical information on how to develop a business plan for any online company.