“ROAR MOBILE STORES” (BUSINESS PLAN) (2013-2014) Address: Metro Mall, Kalyan (East)
NAME ROLL.NOVikas P. Mishra 106Rakesh S. Amin 109Omkar A. Shinde 108Azhar N. Shaikh 107 Roger Y. Peter 110Rahul N. Takale 105Umesh S. Dasoni 122
EXECUTIVE SUMMARYOur store is dedicated to provide customers with wide range of Mobile phones providing highcustomer satisfaction by rendering excellent service, quality products, and furnishing anenjoyable atmosphere at an acceptable price/value relationship. We will also maintain a friendly,fair, and creative work environment.Our Mission: To supply customer with product on demand and ensure utmost satisfaction.Our Motto: "Your Search stops here!"To achieve our objectives, “Roar Mobile Stores” is seeking additional loan financing. This loanwill be paid from the cash flow from the business, and will be collateralized by the assets of thecompany, and backed by the character, experience, and personal guarantees of the owners.Keys to SuccessThe keys to success in our business are:* Location: providing an easily accessible location for customers.*Convenience: offering clients a wide range of products in one setting, and extended businesshours.
INDUSTRY ANALYSIS Mobile Industry AnalysisThe following is the analysis of cell phone industry, which deals with cell phone manufacturersas well as cell phone services:Dominant Economic Indicators1. Market Size:The cell phone industry is one of the fastest growths besides the Internet. Cell phones have gonethrough a huge change and its market has expanded globally. Since 1994, the cell phoneindustry has increased from 24 million to about 182 million in wireless phone and relateddevices operating in the United States with some 162-million mobile-phone users in the UnitedStates alone.The cell phone market is increasing very fast with today’s ever-emerging technology andinnovation in improving cell phones. Today, society is living with advance technology andeveryone wants to keep pace with the new technologies. Cell phone industry is growing largerbecause it has become a necessity. Parents are getting mobile phones for their teens becausethey want to communicate in case of an emergency and the wireless carriers have made it easy toadd users to their existing plans. And carriers are becoming successful in getting parents toexpand their plans to include their teens. This increases buyers and increases market sizeworldwide.2. Scope of Competitive Rivalry:The cell phone industry has become increasingly larger within the last three years as a result ofmore affordable cellular phones as well as lower service costs. Companies are competing in anadvance technology and communication sector in which success attracts customers to buytheiproducts and services. The market is very competitive because they offer the same productsand services, but has different physical attributes to the phones and different costs, which buyershave choices to choose from. Companies want to provide the best products and services to
attract buyers by lowering cost and improving products, which makes the cell phone industryvery competitive.Here are the main factors of competitive rivalry: Cell phone cost: Customers wants better services and products at a lower cost Bundle functions into just one cell phone: For example E-mail, text messaging, internet New technology improvement: For example camera phones3. Stage in Life Cycle: Mobile Industry
SWOT AnalysisSWOT Positive NegativeInternal Strength WeaknessFactors High technological advancement Highly Competitive Large customer base Intensive R&D required Increasing disposable income of the Low end products yields very less people margin Greater number of Telecom service providers thus high demand of mobile phones Government policies to support the industryExternal Opportunity Threatsfactors Rural market is very less penetrated Very lucrative industry, and low so great opportunity ahead barriers to enter in the industry 3G auction has paved the way for Unorganized sector highly sophisticated mobiles. Need to look for each social class I-pods, Smart-phones are highly Need to keep abreast with the demanded technology QWERTY keypad mobiles with various applications like GPA, Maps 3G features. Android compatible mobile phones. Microsoft office and pdf readers enabled phones. Government policies for mobile banking provides great opportunity ahead
4. Numbers of Companies in India:1. NXG Electronics 28. Gfone 55. Munoth Mobiles 82. Technotouch2. X Electron 29. G-Five 56. Nokia 83. T-Series3. CAPLIGHT 30. Haier 57. Nelson 84. Ultra Mobile4. AASTHA mobile 31. Hansum Mobiles 58. Olive 85. UNITEL5. Airnet 32. Hawkman Mobile 59. Onida 86. UNIX Mobiles6. AZ LINK + 33. Hitech Mobiles 60. Orion Mobiles 87. Usha-Lexus7. Ajanta Mobile 34. Hp 61. Orpat 88. Vodafone Essar8. Anconn Mobile 35. HTC 62. pagaria 89. Videocon9. Airphone 36. I-Tel 63. Philips 90. Voice10. AROMA Mobiles 37. ICube 64. Pride Mobiles 91. VOX11. Asiatelco 38. Intex 65. Philiray 92. Winncom12. BlackBerry 39. Ion 66. Kuantum 93. Xcite13. BLEU 40. iNQ 67. KOPPERR 94. Zen Mobiles14. Beetel 41. Karbonn Mobiles 68. Quba Mobile 95. RK Mobile15. BPL Group 42. Lava Mobiles 69. Rage 96. ViP Mobile16. Byond tech 43. Lemon 70. Ray 97. CAPLIGHT17. Colors mobile 44. LONGTEL 71. Swissvoice India 98. Alcatel18. celkon 45. Lexus 72. SAGEM 99. Spice19. c-Tel 46. LG 73. Samsung 100. MVL20. Daya 47. Logitec 74. San Mobile 101. Nova mobiles21. Dell 48. Magicon 75. Sansui 102. Mobell22. Digibee Mobiles 49. Maxwood Mobiles 76. Siemens 103. Akai mobiles23. eTouch 50. Maxx 77. Simcom Mobiles 104. AZ Link Anycool24. Fujezone 51. Melbon 78. Simoco Mobiles25. Fly 52. Micromax Mobile 79. Sony Ericsson 105. QUBA mobile26. Fortune 53. Motorola 80. Speed Mobile 106. ACER MOBILE27. GEEPEE Mobiles 54. Movil 81. Spice Telecom
5. Customers:Cell phones are attractive targets that are small, expensive, and useful. With the list of featuresand data applications available on mobile phones, which is continuing to grow and emerge; cellphones are not only a luxury but also necessity. Cell phone users use cell phones for more thanjust talking; the mobile services consumer wireless usage study found that 56 percent ofcustomers used their cell phones as cameras, clocks, calendars, music players, and other non-talkfunctions. Also, most cell phone owners are between the ages of 18 to 34. However,consumers’ dependency on cell phones can pose a threat that force users to be victims of payingtoo much for cellular phone services.There are numerous complaints about low quality service in the industry due to the competitionbetween companies. By lowering costs for the services, the company will lose profits and reducetheir shares. Customers today, typically complain about the high cost for the services of havingto stay on a contract for a long time and paying an early cancellation fee. Also, with low serviceline, customers rather pay higher price for better services such as receptions.Cell phone companies know that consumers dislike mobile-phone services. In fact, mobilephone services were the second lowest-ranked industry. Mobile companies were also thenumber two sector in complaints in 2005. Many companies claim that consumers love their cellphones and that they’re very happy with the services, which is a half truth. Consumers complainfrequently about dropped calls, lousy customer service and exorbitant penalties from exitinga contract.6. Technology/Innovation:Technology and innovation are advanced every year making the industry even more competitive.Cell phone companies that design and make evolutionary upgrades are emerging into the marketto be more competitive.
7. Product Characteristics:In the cell phone industry, the products and services are highly standardized. In the past, theproducts differentiated in cell phones and services. Today, with more technology enhancement,the products in different companies are essentially similar. Since this is a cell phone industry,there is a maximum amount of products and services that consumers can choose from. Yet,consumers do not want to purchase cell phones at a higher price value unless the companies areable to make it attractive.8. Scale Economies:There are two types of economies of scale pertaining to the cell phone industry. They are theinternal and external economies. Internal Internal economies of scale are economies made within a company as a result of mass production. So as a company produces more and more products and services to consumers. External The external economies are made outside of the company as a result of its location. Most cell phone companies have a corporate headquarter that concentrates on the following to keep track of the company’s progress.9. Capital Requirements:The cell phone companies require large capital to enter and remain in the market successfully.Companies require capital to create products that attracts consumers and for total assets andrevenues to enlist other products and services that are featured with cell phones. Cell phonecompanies work with manufacturers to create new technological and innovative cell phones inthe market today to attract consumers. A valuable capital in the cell phone industry is theconsumers because revenue and profits depends on them who buy the companies’ cell phones.New products are introduced continually, technology evolves on a daily basis, and customers areeager to become part of the future of a wireless society. This makes the market very competitive
and large companies that have big economies of scale provide a highly automated service to alarge number of customers, and have the financial resources required in building and maintaininga large network of communications devices. Smaller companies can also compete, but only insmall markets or by provide specialty services.Total capital requirement to start a business in selling cell phones requires a capital investmentbetween $50,000 to $90,000, and liquid capital requirement of$40,000 to $50,000. In addition,companies spend millions of dollars on developing brand name recognition, and promoting andmarketing their products. Companies also want to spread their companies out throughfranchises, because more offices mean more visibility in drawing consumers in to buying theirproducts and services.11. Industry Profitability:The cell phone industry will remain a competitive market and will increase continuously with atotal of 1,200 wireless companies with total annual revenue of $100 billion. The profitability ofindividual companies is driven mainly by their ability to develop new products, providing betterservice, making their products affordable for consumers. Profitability of companies is achievedalso by taking advantage of marketing their products, have access to capital, and by inquiring theexpertise to improve the cell phones.The profitability of the cell phone industry is dependent on the volume of consumer they canattract. The profitability of companies has increased drastically since 2002 and will continue toincrease as new cell phones are improved. Since 2004, the financial markets of cell phonecompanies seem to increase fast because of the new technologies and services that companies areoffering consumers, and at the same time they compete for customers. Although there arecomplaints and dissatisfaction from consumers, cell phone and the service along with it hasbecome a necessity which companies use as an advantage by charging consumers higher price.As in any industry, there are declining and inclining profits. The cell phone has experienced aslight decline; worldwide shipments of cell phones rose 26 percent in the first quarter of 2006compared with the same period last year. Currently today, the global market continues to thriveon consumers replacing older phones with new purchases, a total of 226.7 million mobilephones. For individual company profitability, Nokia is listed at the top, retaining a third of the
global market share and enjoying a 39.6 percent growth. Motorola also had a high increase of60.6 gains and is controlling 20.3 percent of the market. Samsung has shipped over 29 millionphones and is in third place with a decrease in sale to only 18.4 percent growth. LG came fourthfor market share with 6.9 percent and experienced an operating loss for the quarter due tomarketing expenses and fewer sales.The cell phone industry looks strong and competitive between the companies and service theyprovide. Even more as new options are in place, such as, allowing consumers to keep theirnumbers while switching carriers.Different Product OpportunitiesMobile HandsetCell phones of different brands.AccessoriesCell phone related accessories like Bluetooth, Head phones etc.Industry TrendsTechnologyThere is currently a variety of wireless networking capabilities that are emerging, developing,and integrating. The future of these technologies within the cell phone industry will create better,higher-speed, and longer-distance capabilities.
Phone DesignCell phones will become much more powerful, and designs will continue to morph into evermore complex, multi-purpose personal communication devices, including the growing use of thecell phone as a financial transaction device. Batteries for wireless devices will begin to last muchlonger as well.Market GrowthAlthough cell phone markets are relatively mature in the U.S. and in major developed nationseverywhere, the number of subscribers nonetheless continues to grow in these countries. In theU.S., new subscribers tend to be those on lower-cost plans and children. Already, 40% of 12- to14-year-old Americans carry cell phones; the rest of them will be soon to follow. Meanwhile,$1 billion cell phone subscribers are expected to join the craze within less developed nationsworldwide. The largest nations include Sweden, the U.K, and the Netherlands followed byChina and India.Security IssuesSecurity issues such as eavesdropping on Bluetooth conversations, hacking into Wi-Fi networksand viruses spread among cell phones will require more attention and investment from thetechnology and telecommunications sectors. The estimate is that the global market for mobilephone security software will reach $1 billion by 2008.Mobile Commerce (mCommerce)Mobile Commerce, also known as mCommerce, will emerge and create mobile subscriptions andadvertising opportunities for companies ready to embrace mobile subscribers. The cell phone canis also going to be considered a “digital wallet.” In Europe and Asia, many people pay at theregister by reaching for their cell phone instead of their wallets. The phones facilitatetransactions between the point of sale and the users credit, bank, or cellular account.
Key Success FactorsThere are factors that are necessary to attract customers, compete, and ultimately be successful inthe cell phone industry. For a company to be successful in the cell phone industry they cancreate value by providing the basic features, technical features, and support to back up thosefeatures.BasicThese features are assumed to be included and expected in a basic cell phone package to satisfythe simplest customers. Caller ID Line Block Call Forwarding Call Hold Call Waiting Caller ID No Answer Call Forwarding Three-Way Calling VoicemailTechnicalThese features go beyond the basics and provide the technical features to attract the savviest ofcell phone subscribers. Internet capabilities to receive billing, make payments, and download ringtones Detailed Billing either in paper form or downloadable from the internet High-Resolution Camera, most important feature among subscribers Text Messaging, 3 billion wireless text messages are sent each month Web Access to get stock quotes, sports scores, weather, and up to the minute news Insurance to protect yourself in case of malfunction E-mail Messaging can now be done from the palm of your hand
NO Domestic Long-Distance Charges, not available with landlines Ability to Download Ringtones, free is better Battery Power is the second most important feature among subscribers Bluetooth is wireless technology that communicates with a wireless hands-free headset Video capability at least 15 seconds of video is the standard Prepaid Minutes typically useful for an individual that requires minimal talk time Mp3 Capable, subscribers want to be able to use their iPod’s with their handsets Ability to Record Music and play it back or use as a ringtone FM Radio can now be transmitted through a handset FLASH Memory Cards can hold up to 100 songs and are removableSupportEvery company can provide the basic and technical features but the ultimate test for success orfailure is decided by the support the cell phone company can provide to their subscribers.Industry Prospects and Overall AttractivenessFactors Making the Industry AttractiveA Federal Communications Commission report stated that over the past four years landline usagehas decreased by 30 million users. There are great opportunities right now to get a lower price ora lot more minutes on a cell phone. The cell phone industry is offering unlimited plans ingrowing numbers. The word cell phone has become a familiar usage across the globe, especiallyin developed countries.The Cell Phone Service Providers have made provisions to allow users to access the Internetthrough the cell phone, without taking the pain to log into their computers. Cell Phones now canbe used as planner, navigation system and for games. Also, Steve Jobs the owner of Apple hasenabled the innovative invention of the Motorola hybrid phone, which has an iPod with the cellphone. The cell phone is one technology where people of different ages can use without anyhesitation. Cell phones are also used as fashion objects, since the styles have been changing
almost every year; The cell phone technology has infiltrated its way through the teenagepopulation very fast. The national network, Sprint is on the verge to launch cell phones that arecustom handsets, which contains phone contents such as Disney ring tones and games. This is away where the cell phone industry can open a whole new arena for attracting a market forchildren. Also, there is the new culture of SMS (Short Message Service), which is a new way tosend text messages. SMS is quite popular among teenagers and college students, which helpseverybody to keep in touch with friends and family.Factors Making the Industry UnattractiveMergers might be good for the cell phone service providers, however, if the nation’s leading cellphone companies merge, there will be less competition in the market, causing prices to increasethan before. With large mergers like Cingular and AT&T, there is the risk of a monopoly in themarket, which can charge the highest possible prices to consumers. This will definitely pose athreat to consumers, because the number of options of choosing one cell phone service providerover another is reduced.Special Industry Problems and IssuesAs with new technology, health concerns have risen with the use of cell phones. There arecertain studies that show a few cases of tumors or cancer that develops as result of using cellphone for long periods of time. According to the Food and Drug Administration, these healthproblems are said to be caused due to the radiations emitted from cell phones. Also, theseradiations tend to cause birth defects due to genetic mutation. In addition, many incidents of road hazards occur because of the use of cell phones. Manyaccidents involving a driver being distracted by talking on a mobile phone have begun to beprosecuted as negligence similar to driving while intoxicated.Cell phones have also been a major threat to security. There have been cases of identity theft,and also where a third party can intercept in a network listen to conversations. Also thebombings that occurred in 2004 at Madrid, was from a cell phone. So there are major securityconcerns of the cell phone that has to be looked into.
VENTURE DESCRIPTIONCompany Summary“Roar Mobile stores”, upon the commencement of operations, will sell a wide range of mobilephones & accessories to the target customers. We will provide quality product from rangevarying accordingly. “Roar Mobile store” will be a part of tough competition due to presence ofE-zone and Mobile Stores.The Retail outlet will be located in a Metro mall at Kalyan. The outlet will utilize 2,500 squarefeet. The location is strategically situated on one of the busiest place of Kalyan. It is a highprofile area, with easy access from all parts of city.Start-up SummaryThe start-up capital will be used for the design, leasehold improvements, and infrastructure of theoutlet.Leasehold improvements will amount to approximately Rs.12,00,000 , and shop’s infrastructurewill cost about Rs.20,00,000. The owner will invest Rs. 80,00,000 for cash-on-hand at startingdate.Start-up RequirementsStart-up Expenses Amount (in Rs.)Rent deposit 75,000Other 0Total Start-up Expenses 75,000Start-up AssetsCash Required 8, 00,000Other Current Assets 7, 00,000Long-term Assets 25, 00,000Total Assets 40, 00,000
Total Requirements 40, 00,000Start-up FundingStart-up Expenses to Fund 32, 00,000Start-up Assets to Fund 40, 00,000Total Funding Required 72, 00,000AssetsNon-cash Assets from Start-up 7, 00,000Cash Requirements from Start-up 6, 00,000Additional Cash Raised 0Cash Balance on Starting Date 6, 00,000Total Assets 13, 00,000Liabilities and CapitalLiabilitiesCurrent Borrowing 0Long-term Liabilities 7, 00,000
MANAGEMENT AND HUMAN RESOURCE PLANManagement SummaryRoar Mobile stores will be organized and managed in a creative and innovative fashion togenerate very high levels of customer satisfaction, and to create a working climate favorable to ahigh degree of personal development and economic satisfaction for employees.Employees would be trained as if how to deal with the customer as customer is the king and hasto be satisfied and which would be the utmost priority for Roar Mobile stores along with earninghealthy and fair margin of profit. As the business grows, the company will consider offering anemployee benefit package to include health and vacation benefits for everyone.Personnel PlanThe personnel plan calls for a Sales team of 12 who will entertain customers demand and willdeal accordingly as per their requirement and Shop will also have a technician. Everyone will becontract workers, and will be paid a fixed remuneration along with sliding commission scalebased on the amount of revenue created. Future plans include the hiring of one more technicianso that better after sales service could be provided as the business expands.
MARKETING PLANStrategy and Implementation SummaryProviding good quality product, Skill at what we do, good customer service, and creating apleasant environment for our customers will be important to implementing our business plan.Competitive EdgeRoar Mobile Stores wants to set itself apart from other Mobile retail outlet that may offer almostsame types of product & services. Having gone through such outlet a customer would realizewhat makes Roar Mobile store different, friendly and customer slanting environment with bestquality products of different price range and customer oriented schemes like Easy monthlyinstallment i.e. availability of EMI scheme makes company more competitive. So the focus of“Roar Mobile Stores” is Customer Satisfaction.There are a number of brands i.e. Vijay sales, The Mobile Store or E-zone located nearby we donot intend to compete with these so called "Big Fish" We wish to make Roar Mobile store abrand and wish to be called as one among Big Fish in next 3-4 yrs.Marketing StrategyOur marketing strategy is a simple one: satisfied customers are our best marketing tool. When acustomer leaves our outlet with a new cell phone, he or she is broadcasting our name and qualityto the public.No major advertising campaigns are anticipated. Our research says that “Word of Mouth” is thebest advertising for this type of business. We will, however, advertise through 3 huge hoardingsin the city one of which will be outside the metro mall while other would be one near crowdedKalyan railway station and other outside Birla college.