TABLE OF CONTENT:
Introduction...............................................................................................
Acknowledgement :
I have taken efforts in this project. However, it would not have been possible
without the kind support ...
Introduction:
Awami Old Book Center is a start-up used bookstore in the Blue area,Islamabad. It is
the goal of the company...
Mission
Awami Old Book Center`s mission is to provide used quality literature of all types at
the lowest possible prices i...
Market Analysis:
Our market is facing a decline in growth over the past two years. This is attributed
to the overall weak ...
Financial Considerations:
Our start-up expenses come to 178,0000, which are single time fees associated with
opening the s...
Start-up Summary:
Our start-up expenses come to 178,0000 Rs/-, which are largely single time fees
associated with opening ...
Start-up Requirements:
Start-up Expenses
Legal

2,4000 Rs

Pre-sale advertising/marketing

4,0000 Rs

Land location and fi...
Products:
Awami Books will offer a wide range of book, magazine, and music selections. This
includes just about every conc...
Casual Shoppers: These are customers who go to the bookstore with no set
idea of what they want to purchase. They seek to ...
Market Analysis
Growth

Year 1

Year 2

Year 3

Year 4

Year 5

CAGR

Potential
Customers
Casual shoppers 2%

78,000 79,56...
Asset Leverage :
Asset leverage allows Awami bookstore to use their best operational assets to
expand their...

Customer L...
Emerging Markets:
Emerging markets are fast growing regions of the world that enable Awami
bookstore to quickly expand

Th...
Marketing Strategy:
One of the most critical elements of Awami`s Books success will be its marketing
and advertising. In o...
Personnel Plan:
Initially the company will have a small staff including upper management and sales
personnel. We expect to...
Important Assumptions:
The company is basing it assumptions on a stable growth market using average
interest rates over th...
Promotion:
Our electronics as well as books will be on sale for the opening week of business,
and will assume normal prici...
Report of bussiness
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Report of bussiness

  1. 1. TABLE OF CONTENT: Introduction.......................................................................................................................... 3 Objectives....................................................................................................... 3 Key to Success............................................................................................... Mission............................................................................................................ Company Summary..................................................................................... 4 Market Analysis.................................................................................................................... Finance Consideration........................................................................................................ Start-up Summary................................................................................................................ Start-up Requirement........................................................................................................ Products:................................................................................................................................. Market Segmentation......................................................................................................... Target market segments:.......................................................................... Marketing Analysis Chart.......................................................................... 5 6 7 8 9 9 9 11 SWOT Analysis....................................................................................................................... 11 Strengths................................................................................................... 11 Weakness ................................................................................................. 12 Oppurtunities......................................................................................... 12 Threats...................................................................................................... 13 Competition and Buying Patterns:................................................................................. 13 Marketing Strategy:............................................................................................................ 14 Sales Strategy................................................................................................ 14 Sales Forecast........................................................................................................................ 14 Personnel Plan: .......................................................................... ............... 16 Financial Plan: ............................................................................................. 16 Important Assumptions: .................................................................................................. 17 Marketing Mix: .................................................................................................................... 17 Product: .......................................................................................................... 17 Price: ............................................................................................................... 17 Place: ............................................................................................................... 17 Promotion: .................................................................................................... 18
  2. 2. Acknowledgement : I have taken efforts in this project. However, it would not have been possible without the kind support and help of many individuals and organizations. I would like to extend my sincere thanks to all of them. I am highly indebted to SIR.ALI RAZA NOOR for their guidance and constant supervision as well as for providing necessary information regarding the project & also for their support in completing the project. I would like to express my gratitude towards my parents & member of Naeem Book Store for their kind co-operation and encouragement which help me in completion of this project. I would like to express my special gratitude and thanks to industry persons for giving me such attention and time. My thanks and appreciations also go to my colleague in developing the project and people who have willingly helped me out with their abilities.
  3. 3. Introduction: Awami Old Book Center is a start-up used bookstore in the Blue area,Islamabad. It is the goal of the company management to acquire local market share in the used bookstore industry through low price, a dominant selection of products, a competitive variety of services including a buyback/trade program and hard to find book search, plus a relaxing, friendly environment that encourages browsing and reading. Objectives These are the goals for the next three years for Awami Books: Achieve profitability by July Year 2. Earn approximately 400,000 Rs. in sales by Year 3. Pay owners a reasonable salary while running at a profit. Keys to Success In order to survive and expand, Awami Old Book Center must keep the following issues in mind: We must attain a high level of visibility through the media, billboards, and other advertising. We must establish rigid procedures for cost control and incentives for maintaining tight control in order to become THE low-cost leader in used books. In order to continually attract customers, we must be able to keep the maximum amount of inventory available and achieve a high level of customer service.
  4. 4. Mission Awami Old Book Center`s mission is to provide used quality literature of all types at the lowest possible prices in the Blue Area,Islamabad. The company additionally seeks to provide a comfortable atmosphere for its clients that promotes browsing, relaxation, and an enjoyable environment to spend extend time in. Awami books attraction to its customers will be our large selection of books, magazines, used CD's and our purchasing/buyback option, which lower our book acquisition costs and allows our customers to discard unwanted books/CD's in exchange for cash. Company Summary: Awami Old Book Center will be a limited liability corporation registered in the state of Islamabad. The company will be jointly owned by Mr.M.Owais, a former head librarian of the Islamabad Library. Mr. M.Owais is establishing this firm as a growth-oriented endeavor in order to supplement his retirement, continue meeting people with similar interests, and to leave a viable business to his children. Awami Old Book Center will be establishing its store in one of the busiest section of Islambad`s Blue area. This area is well know for its upscale residents and high-quality establishments. Our facility is a former 8,000 square ft. furniture store which allows the company to stock a large amount of inventory.
  5. 5. Market Analysis: Our market is facing a decline in growth over the past two years. This is attributed to the overall weak economy. Book store industry sales rose only 3.6% for last year whereas overall Pak. retail sales grew by 4.3%. However, management believes that this may be an advantage to the used bookstore industry. As customers cut back on purchasing, used bookstores will look more attractive to customers who still wish to purchase books. Therefore, management believes this may be a good time to get into the industry and gain market share. The bookstore industry as a whole is going through a large consolidation. Previously, the market was dominated by local, small stores and regional chains. With the advent of the "superstore" as created by Naeem Book Center, the largest players in the market have been able to gather significant market share and drive many independent booksellers out of the market. Where independent booksellers can still create a viable position for themselves within the market is in the used books segment. This segment generally does not attract big companies since the "superstore" concept is much more difficult to replicate in a market with such low profit margins. This tends to favor the local independent bookseller in the used book market segment as long as they can acquire a sufficiently large enough facility to house an attractive inventory and compete with the national chains.
  6. 6. Financial Considerations: Our start-up expenses come to 178,0000, which are single time fees associated with opening the store. These costs are financed by both private investors and Banks loans. Please note that we expect to be operating at a loss for the first couple of months before advertising begins to take effect and draw in customers. Awami Book Center will be receiving periodic influxes of cash to cover operating expenses during the first two years as it strives toward sustainable profitability. Funding has been arranged through lending institutions and private investors already. We do not anticipate any cash flow problems during the next three years.
  7. 7. Start-up Summary: Our start-up expenses come to 178,0000 Rs/-, which are largely single time fees associated with opening the store. These costs are financed by both private investment and short- and long-term Banks guaranteed loans.
  8. 8. Start-up Requirements: Start-up Expenses Legal 2,4000 Rs Pre-sale advertising/marketing 4,0000 Rs Land location and finders fee 20,0000 Rs Insurance Rent Expensed Equipment Initial store facilities Other Total Start-up Expenses 1,7800 Rs 6,0000 Rs 25,0000 Rs 50,0000 Rs 3,0000 Rs 112,1800 Rs Start-up Assets Cash Required 33,8200 Rs Start-up Inventory 16,0000 Rs Other Current Assets 8,0000 Rs Long-term Assets 8,0000 Rs Total Assets 65,8200 Rs Total Requirements 178,0000 Rs/-
  9. 9. Products: Awami Books will offer a wide range of book, magazine, and music selections. This includes just about every conceivable category including fiction, non-fiction, business, science, children's, hobbies, collecting, and other types of books. Our music selection will concentrate on CDs as these are the most popular and take up the least amount of floor space. In addition, we will be offering a competitive buy and trade service to assist in lowering our inventory acquisition costs and making our store more attractive to our customers. We also offer a search and order service for customer seeking hard to find items. Another less obvious service to our customers will be the relaxed "reading room" type atmosphere that we will encourage through the placement of chairs, couches, and etc. We strongly encourage our customers to spend as long as they like reading through our book selection and enjoying a quiet, relaxing environment. Our store hours will be 8:30 a.m. to 8:00 p.m. Monday-Friday and 10:00 a.m. to 6:00 p.m. Saturday. Once profitability becomes stable, we will extend these hours. Market Segmentation: The company anticipates serving the needs of all the potential customers within a ten to fifteen mile radius in which the approximate population is 150,000 (based on census information). The majority of the residents in this area are Caucasian (78.8%) Black (13.6%) and Hispanic (9%) with occupations classified as professional, homemaker, or retired. The majority of household incomes range from 50,000 - 100,000 Rs (50.3%). The median income in this area is 68,096 Rs, compared to the whole Blue area which is 34,248 Rs. The typical "head of household" age is 25 - 34 (22.4%) or age 34 - 44 (23.1%) with a median age of 44.4 years old and an average age of 32 years old. Target market segments: Used bookstores serve the entire purchasing population of its geographical area but focuses on customers who desire to purchase books/music at discount prices because they are seen either as near commodity items or, in the case of books, are not considered to be a long-term investment (i.e. they will trade them back). Because of this relatively low value placed upon our merchandise by potential customers.
  10. 10. Casual Shoppers: These are customers who go to the bookstore with no set idea of what they want to purchase. They seek to spend a fair amount of time browsing the store and often are considered impulse buyers. Often they leave the store with small purchases or without buying anything. These customers are attracted to bookstores with low prices and large inventory. "Hard to Find" Shoppers: These are customers with very specific needs. They are looking for a difficult to obtain item, usually a book that is out of print. If we can satisfy this customer, then we are able to build significant customer loyalty. These clients are generally price insensitive and are also drawn to stores that have large inventory. Specific Category Shoppers: These customers are those types that generally buy books or music of one category, such as fiction or romance. These customers generally have a good idea of what they want to purchase and have the greatest buyback/trade potential. These customers represent the highest volume purchaser, often leaving the store having spent 300-500 Rs. The following table and pie graph show how our market segments are broken up into size and relative percentages. We use the city of Brecksville census information to determine growth figures.
  11. 11. Market Analysis Growth Year 1 Year 2 Year 3 Year 4 Year 5 CAGR Potential Customers Casual shoppers 2% 78,000 79,560 81,151 82,774 84,429 2.00% "Hard to find" shoppers 2% 22,000 22,440 22,889 23,347 23,814 2.00% Specific category 2% shoppers 50,000 51,000 52,020 53,060 54,121 2.00% Total 2.00% 150,000 153,000 156,060 159,181 162,364 2.00% SWOT Analysis: Strengths: Strong Management: Strong management can help Awami Books reach its potential by utilizing strengths and eliminating weaknesses Pricing Power : Customers typically rebel against price increases by switching to competing products, but if a company has pricing power, customers will continue using Awami`s Book products and services Innovative Culture: An innovative culture helps Awami Books to produce unique products and services that meet their customer’s needs
  12. 12. Asset Leverage : Asset leverage allows Awami bookstore to use their best operational assets to expand their... Customer Loyalty : When given a choice, customers are loyal to Awami bookstore. Cost Advantages : Lower costs lead to higher profits for Awami bookstore. Weakness: Tarnished Reputation : A tarnished reputation can hurt Awami Bookstore`s brand in the eyes of a consumer Weak management: Weak Management increases business risks and reduces profits for Awami bookstore, because they are responsible for the health of the business Weak customer: Weak customer service hurts Awami bookstore’s reputation and causes customers to flee to competitors, who are more respondent… Inefficient Work: An Inefficient work environment means that Awami bookstore’s goods and services are not being utilized properly Oppurtunities: New products: New Product can help Awami Book to expand their business and diversity their customer base New markets: New markets allow Awami Book to expand their business and diversify their portfolio of products and services
  13. 13. Emerging Markets: Emerging markets are fast growing regions of the world that enable Awami bookstore to quickly expand Threats: Change in Tastes: Consumers can change their tastes very quickly. Awami bookstore depends on knowing which goods and services consumers want Bad Economy: A bad economy can hurt Awami bookstore’s business by decreasing the number of potential customers Govt.Restriction: Changes to government rules and regulations can negatively affect Awami bookstore… … "Govt Regulations (Awami bookstore)" has a significant impact, so an analyst should put more weight into it. Competition and Buying Patterns: Our main competitors are: Wonder bookstore (which holds approximately 22% nationwide market share), Maqbool (which holds approximately 15%), and other local new and used bookstores. The used bookstore that most closely rivals our own is Standard Books which is located approximately 13 miles away from Zero Point Islamabad. It is estimated that they hold 9% of the local market share. Management feels it must be clearly stated that we do not intend to directly compete with the Wonders/Maqbool and Other Over the years, these large companies has successfully leveraged their resources to engineer customer experience to a degree that consistently differentiates otherwise commodity-like products and services. This differentiation provides these companies strategic competitive advantage. Resources such as distribution technology, strategic alliances, process research and development, and brand name combine into valueadded services that provide the customer with proximity, dominant selection, discounts, and store ambiance.
  14. 14. Marketing Strategy: One of the most critical elements of Awami`s Books success will be its marketing and advertising. In order to capture attention and sales our company will use prominent signs at the store locations, billboards, media bites on local news, and radio advertisements to capture customers. Sales Strategy Since our store will be a stand alone facility, there is little in the way to directly influence how we close the sale other than to have an attractive storefront with our low prices and excellent selection. We believe this in itself is its own seller. One critical procedure we will be establishing is to insure top customer service and reliability and that our store always has enough inventory of all our products. We will be using industry data on inventory for bookstore chains to assist us. Sales Forecast Based on a 10% mark-up, our forecasted sales will increase by an average of 4.5% from year to year. The target profit margin was defined as an average net profit of all merchandise. As retained earnings increase, a debt retirement fund will be established to encourage early repayment, thus relieving interest expense. Also, a cash basis for purchases will be used to avoid incurring liabilities.
  15. 15. Personnel Plan: Initially the company will have a small staff including upper management and sales personnel. We expect to expand our personnel and extend our hours once we begin to make a profit. Personnel Plan Year 1 Year 2 Year 3 Mr. Owais Khan 42,000 48,000 48,000 Mr. Hikmatullah 18,000 25,000 30,000 Salesperson 10,200 11,000 11,000 Salesperson 10,200 11,000 11,000 Salesperson 10,200 10,200 10,200 Salesperson 10,200 10,200 10,200 Salesperson 10,200 10,200 10,200 Total People 5 5 5 Total Payroll 111,000 125,600 130,600 Financial Plan: The following is our financial projects over the next three years. Please note that we expect to be operating at a loss for the first couple of months before advertising begins to take effect and draw in customers.
  16. 16. Important Assumptions: The company is basing it assumptions on a stable growth market using average interest rates over the past ten years. General Assumptions Year 1 Year 2 Year 3 Plan Month 1 2 3 Current Interest Rate 10.00% 10.00% 10.00% Long-term Interest Rate 10.00% 10.00% 10.00% Tax Rate 30.00% 30.00% 30.00% Other 0 0 0 Marketing Mix: Product: Awami Bookstore is an online store of used books. We provide a wide range of different types of books of various genres and specializations. Price: Our major pricing objectives are market share and profit. We prefer to apply such pricing methods as penetration and discounting pricing customary pricesand standard markup pricing We are going to sell with a low price on a value principle Place: Our business is located in Blue Area of Islamabad of Pakistan, therefore we expect to have a large group of potential buyers.
  17. 17. Promotion: Our electronics as well as books will be on sale for the opening week of business, and will assume normal pricing from there onwards. On select weeks we will offer discounts to students and promotional deals to the general public.

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