The CMO Survey - Highlights and Insights Report - Spring 2024
Business plan _for_apex_watch_world
1. BTEC HND
IN
COMPUTER AND BUSINESS APPLICATION
BUSINESS PLAN
FOR
“APEX WATCH WORLD”
By: - Rohit Gorawara
2. TO: Edexcel International
FROM: Rohit Gorawara
DATE: 11/05/2005
DECLARATION OF ORIGINALITY
I declare that this project has been carried out by myself.
I have acknowledged legitimate references.
I have read the assignment regulations and I am aware
of the potential consequences of any breach of them.
SIGNATURE
ROHIT GORAWARA
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3. INDEX
TOPIC PAGE No.
1. INTRODUCTION TO THE COMPANY……………………………………..4
2. PURPOSE AND SCOPE……………………………………………………….5
3. EXECUTIVE SUMMARY……………………………………………………..6
4. VISION…………………………………………………………………………..7
5. MARKET ANALYSIS………………………………………………………….8
a. MARKET RESEARCH………………………………………………...8
b. WATCHES INDUSTRY………………………………………………..9
c. CUSTOMER NEEDS………………………………………………….10
d. TARGET MARKET AND SEGMENTATION……………………...10
e. INDIA’S INTERNET USER…………………………………………..11
f. TEN YEARS OF THE INDIAN IT INDUSTRY…………………….11
g. SWOT ANALYSIS……………………………………………………..13
6. COMPETITOR ANALYSIS…………………………………………………..14
7. PRODUCT OR SERVICES…………………………………………………...16
8. MARKETING AND PROMOTION………………………………………….18
9. BUSINESS OPERATION……………………………………………………...21
10. FINANCIAL PLAN…………………………………………………………….23
11. INTEGRATED WEBSITE SOLUTION……………………………………...35
12. CONCLUSION…………………………………………………………………40
13. APPENDIX A…………………………………………………………………...42
14. APPENDIX B…………………………………………………………………...44
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4. INTRODUCTION TO THE COMPANY
“APEX WATCH WORLD”, a famous watches business selling various watches brands
with the traditional way of selling (offline business). The business was established in the
year 1998 with its base at New Delhi (India), running since then has built up a great
reputation in its society, which in turn generated more profits for the business. With the
successful operation in New Delhi, company opened another two new watch showrooms
in Mumbai as for the sake of expansion and competition. In the year 2002, the business
had its boom period, where its revenue was calculated at around Rs. 11,00,000, which
was the clear and good indication for the growth of the business.
The Company’s mission was, and is to satisfying customers’ needs. Initially company
used to deal with some limited number of brands, namely; Titan, Timex, Rado, Omega,
Citizen, Casio and Diesel but as with the expansion of the business it started keeping
many other international expensive brands in its stock, as per its customers’ demands. For
the Indian market, it is concentrating on their prestigious high-quality watches, as
mentioned above, which can guarantee the consumers to wear with satisfaction for many
years.
The company has tied-up with a courier company, namely; ‘UPEX EXPRESS’ for the
delivery of its products to the customers as for their convenience on their demand.
Since the company has earned more profits than expected, decided to open few more
showrooms in the other major cities too, viz; Kolkata and Chennai.
Apex Watch World believes in long term relationship with its customers. Therefore, the
company aims at providing quality products and their services to its customers so as to
achieve and provide the best possible level of satisfaction. The company believes in long-
term relationship with its customers, employees or staff and equally contributing to
society and being engaged with and transparent about what we stand for. Since its
establishment, the company has maintained a consistent and healthy growth in its
operations to remain intact in the dynamic business environment in spite of being having
a stiff competition in the market.
Though the business services are restricted to India only, and after considering the
growing demand profits it has earned since its establishment, it decided to take the
business online. So that apart from selling the products in these limited cities it should
also start selling in each and every part of the country. At first the business will be limited
to selling the products in India only but this will not remain the same as it is obvious that
business strategies does not remain the same all the time, it needs to be change with the
change of time. Therefore, it will extend it services globally.
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5. PURPOSE AND SCOPE
The business never comes into existence without any purpose. There is the common
purpose for every business, that is; profit. Adding this to our purpose, the company put
more emphasis on satisfying its customers by providing the high-quality products and
good services to its customers so that the company should be known more for its services.
It would be unsatisfying, to be in business with the only reason that of making money. A
company needs profits to continue, but profits are not what the business is for.
No business sticks to the same strategy that what it adapted initially. With the change in
the business environment, it needs to change its policies or strategies. An online presence
for business benefits in many ways as it is the most powerful communication tool, an
incredible source of cost-efficiency, an environmentally friendly way to work, a sign of
professionalism and pretty much a requirement today. Today, people expects (especially
the clients/customers) to see the website address and an email on the business cards or
other promotional materials.
The purpose for setting up an online business is being alike as other online businesses.
The first and the main purpose is to reduce the warehousing cost. Secondly, it widens up
the market and enhances the availability of the product, i.e., 24/7. It basically enhances
the scope of the business, by increasing the market range and extending the customer
base, lower cost of development, outperforming the competitors, convenient for the
customers. As the online business can help in reducing the cost, well on the other hand, if
talking about the offline business, it has the limited touch in the society and leads to
create more expenses for the business.
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6. EXECUTIVE SUMMARY
This is the Business Plan for “APEX WATCH WORLD”, a very well known watches
company showroom with the base in New Delhi, was established in the year 1998.
Gradually with the progress, it had set up other new showrooms in Mumbai, with the
view of expansion of business. On seeing the online trend following these days, the
company decided to step into an online business. Initially, the online business would
target Indian Market, with which afterwards would enter into a Global market.
Hence, this business plan comprises of the complete reference for the setup of an online
showroom and the various ways in which Apex Watch World will benefit from this
change. This business plan is made on the thorough market research done by the
company in a time span of 1 year.
This business plan also contains the Market strategy with the detail of watches industry.
Being an offline showroom, the franchiser already has some of the available resources;
the others required are also mentioned in this business plan. It has put emphasis on the
financial plan of the business where it has shown that how much the business will make
profit/loss. Financial part will help in converting an offline showroom into an online
showroom. A deep analysis has been done for its competitors also along with the SWOT
analysis of Market.
Therefore in short we can say that this business plan concentrates on the online
conversion of an offline showroom in India, keeping in mind the Indian scenario.
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7. VISION
Why the company exists? Why do we want to do business?
No business is meant for a ‘Day’, it goes on and on or it can be said that it grows/expand
with time. So, to succeed in future, planning is essential. Therefore, it's important to have
a clear and intense vision of the business for its success. It is mandatory to get a clear
picture of future. Indeed, most of the small businesses which now have turned to big
businesses have the common characteristic that is “vision”.
The business should have a clear picture of its future (though it can’t be accurate) for its
growth. Although, the business did the prediction earlier too, this resulted in the profits.
Predictions never fail.
The company has witnessed great performance in the past. Dealing with the customers
offline has helped to gain much reputation and recognition. Now, it has the planned to go
online. Initially, the business would be selling few brands to its customers so as to see or
check the online progress, but as the business starts making profits, it will then gradually
start offering other popular brands too. Along with this, the business has also planned to
e-commercialize it globally, with the aim of gaining global reputation and recognition.
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8. MARKET ANALYSIS
Analyzing market for your product is very important if starting something new. Keeping
this in mind, the company “Apex Watch World” will be doing the research to provide and
help itself from the external business environment. Many researches will be conducted to
examine properly the market trend, current situation, customers’ tastes and preferences.
This is basically, an aid for benchmarking and forecasting, and as a tool for uncovering
many new business opportunities.
The market research will be done for business, so that it should be able to get the
information regarding; firstly, what customers expect from this business, will they like
the products and services offered by the business. Secondly, who all are the competitors
and what basically are they offering to their customers. Thirdly, to research about the
market; to know the market strategy.
MARKET RESEARCH
It is said that information is power, more the information, the lesser the risk will be.
Relevant information reduces risks for the businesses. Thus, market research is done to
learn market trends and consumers’ perception about the product(s)/company. The ways
through which the research was performed:
a. Surveys
b. Focus Groups
c. Questionnaire
d. Observations
e. Personal Interview
(a) Surveys- The surveys were conducted to discover answer for certain questions.
It basically helped to know customers’ attitude and awareness of the particular
product/brand. In this respect, numbers of people will be interviewed so that surveyor
could get the insight of people’s behavior. By surveying, the company will get
valuable and in-depth answers after surveying from many of its offline customers.
(b) Focus Groups- Focus groups are a qualitative research methodology in which
perceptions of a small targeted group of consumers on a particular topic are raised. In
this, the company will categorize and target on its customers viz; kids, youth and aged
people, where the moderator asks the required questions. The information collected in
the group discussions is perhaps less in depth but never the less useful in
understanding why and how people feel about the company’s brand(s).
(c) Questionnaire- Questionnaire is basically used in quantitative marketing research.
They are the inexpensive way to gather information from the large number of
respondents (for questionnaire see Appendix). The company will be distributing the
questionnaire to its customers as and when they visit or purchase the product from
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9. the company.
(d) Observations- Though, this is not the proper research method but still this works as a
research method and plays a significant role in market analysis. Every company needs
to keep the record of its sales performance. Therefore, with the help of this, the
company will get to know about the sales of the products, through which it will help to
introduce more brands online.
(e) Personal interviews- This will be done by the staff or the employees of the
company. This will help in getting the clear picture of what a customer feels about
the company or its products and services.
So, to research for all these things, I personally think that customer surveys, personal
interviews, questionnaires, focus groups and may be observations can help me to get the
information. Customer surveys will reveal out the customers’ attitude on the product
and services and simultaneously will get to know about the business strategy- that is how
it’s carried out actually. Personal interviews, as it is said before will tell more about
customers’ perceptions, though it is obvious that only surveys will not help to get all the
information. Questionnaires are vital for the market researcher as they draw accurate
information from respondents, give structure to interviews, provide a standard form on
which facts, comments and attitudes can be recorded; and facilitate data processing.
Moreover, to get more information about the competitors, product and services or market
strategy, it would be beneficial if network technology is used more.
WATCHES INDUSTRY
As said before, the business will expand gradually making it a global market place for the
customers. Keeping this in mind, the company has to research about the global watch
market.
Some report has shown that the watches industry's revenue for the year 2006 was
approximately $660,000,000, where India contributes around $13,200,000. The gross
profit was 46.98% at $310,068,000 (globally). There were 96 establishments in this
industry that year. Thus, average contribution (or revenue) per establishment annually
was $6,895,000.The total import export value for the year 2006 was $4,481,778,000. The
top trading countries were: Switzerland, $2,101,397,000 (46.89%); China, $700,720,000
(15.63%); Japan, $687,012,000 (15.33%); Hong Kong, $165,032,000 (3.68%); and
Thailand, $131,231,000 (2.93%) and India $89,635,560 (2%). Their combined total
represents approximately 84% of all imports and exports. The total import value for the
year 2006 was $3,758,317,000. This represents a 4.4% increase from year 2005. The top
importing countries were: Switzerland, $1,939,339,000 (51.60%); China, $662,460,000
(17.63%); Japan, $639,002,000 (17.0%); Thailand, $126,266,000 (3.36%); and Hong
Kong, $118,312,000 (3.15%). Their combined total represents approximately 93% of
import from all countries. The total export value for the year 2006 was $638,379,000.
This represents a 29.2% increase from year 2005. The top exporting countries were:
Switzerland, $147,537,000 (23.11%); Canada, $96,704,000 (15.15%); Mexico,
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10. $50,472,000 (7.91%); Hong Kong, $43,757,000 (6.85%); and Japan, $26,878,000
(4.21%). Their combined total represents approximately 57% of export to all countries.
Adding the import and subtracting the export, the total consumption value of this industry
for the year was $3,780,000,000.
Thus, the above report has given the clue of how the watches industry is making
progress. The watches are in demand these days. It is the ‘World OF Fashion’. So, it is
apparent that the business may get lots of opportunities after e-commercializing it
globally.
CUSTOMER NEEDS
The business is formed to provide the services to the society. No business can exist
without society. Hence, it is important to see whether customers’ needs are satisfied or
not and what actions should the business takes to overcome that.
The company, on customers’ high demand, will be selling few brands initially which are
liked by the customers. It will put its best to satisfy customers with their products and
their services.
It is easy to make assumptions about what customers want and need. Interviewing
customers provides the team with up-to-date information on customer priorities, clarifies
likes and dislikes, and identifies emerging opportunities.
Everyone has different choices, tastes, styles, etc. for the product, so the company would
definitly be selling the watches according to their customers demand and their
requirements. Nowadays, as due the tough competition in the market, the companies are
producing the watches according to the current trend and fashion. So, basically there will
not be any chance to go against the customers’ wishes or wants. The company’s top
priority is not to earn profit but to serve the best interest of the society. It is so because
the business can build up its image and it may lead to an increase in sales as well profits.
Thus, by doing its social duty, the business is achieving its primary objective,i.e. profits
TARGET MARKET AND SEGMENTATION
How do the busines will get to know its real customers. Are the customers trend-
conscious and always on the alert for new, fashionable options? Or are the customers
more likely to be early adopters who are open to choosing new, unproven options? The
more we know about our customers, the better we can reach them and meet their
individual needs. It becomes necessary to target the audiences which are our customers
because only they are the only profit generating tools. Determining the right target
audience is probably the most important part of the market analysis, because it doesn't
matter what you're saying if you're not saying it to the right people. A target audience is
basically refering to the people of certain age, gender, loations, marital status, etc.
without knowing the target audience it will become very difficult to promote or sell the
products to the right people or at the right place. This would eventually lead to drown the
new electronic business so that’s why targeting should be kept as major considerations.
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11. Therefore, the business should spent time for searchig about customers’ profile. This
would help the company to make better and more consistent customer decisions, like,
which products and services to be offered and how to most effectively communicate their
features, benefits, and availability. To elaborate it in a more logical way, it has been
detailed in three different categories.
The business has been selling different kinds of watches to different customes. It means
that the business has been selling the different kinds of watches for kids, teenagers, aged
persons or for the old people. It depends upon different age groups, sex, income level,
location etc.
People in the society are different, with different tastes, needs or desire, who may require
different version of the same product; watches. They may buy the products of different
prices, from different locations or may be reached by different media. While categorizing
different types of target audiences, it should be considered to see whether they are heavy
or light users for the watches that the company is offereing. To boom the business in the
future it would be worth to spend time to know our genuine customers.
The numbers of businesses have failed because the owners have not taken the time to
determine their target audience is staggering. Some of the basic questions that should be
asked before categorizing and recognizing the correct audience are as follows:
a) What is the age range of the customer who wants our product or service?
b) Which sex would be more interested in this product or service?
c) What is the income level of my potential customers?
d) Is this a product or service they need or a luxury item?
e) How will they use this product or service?
f) What will draw them to this product or service? (Easy availability? Low price?
Personalized attention? Special features? )
g) Which, if any, special features are most appealing?
Below is the classification of the different types of watches that will be offered by
different watch companies to customer according to their requirements.
Classic Watches
They are right for everybody, and are useful in any situation. It's considered to be a norm
to wear it during working time. Classic watches are distinguished by quiet design
approved by time. As a rule, a classic watch case is round; a leather wristlet is dark
brown or black
Sporty Watches
A sporty watch has not only modern sporty design but has some other useful
characteristics. Basically, it is meant for our new generation, which has a great demand in
the market. Durable materials are used to create it. Sporty watches are always water-
resistant. They are usually massive with wide watch straps.
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12. Ladies Watches
Watches for ladies differ from male watches not only by size but with different styles.
For women more important is how their watches look but not what kind of mechanism is
inside. Diversity of forms, bracelets, wristlets, colors can make any woman more
attractive and unique.
INDIA’S INTERNET USER
This is the major consideration as well as major threat while doing an online business.
There’s the report on India’s Internet User, which tells us that how many people from the
nation use internet.
“India is one of the fastest growing IT markets in the world, the fastest growing PC market in the
Asia-Pacific region, and also the country with the fastest growth in Internet usage in this region.
In much of the developed world, India today has a substantial mind share amongst those involved
in information technology (IT) software and services.
TEN YEARS OF THE INDIAN IT INDUSTRY
The past decade has witnessed the rise of the Indian IT sector from a position of virtual
non existence, to one, where it has occupied a place of pride in the global IT industry.
The Indian IT sector has grown from a mere $6.4 billion in 1998 – 99 to $ 13.6 billion in
2001 – 02. The IT Industry today accounts for 2.87 percent of India’s GDP. Exports from
the Indian Software Industry accounted for over half the industry’s revenues, accounting
for US$ 5.5 bn of the total IT pie of US$ 10.5 bn in 2001. The domestic market was
dominated by hardware at US$ 2.9 bn, followed by services at US$ 1.6 bn, and packaged
software brought up the rear with earnings of US$ 409 mn.”
Indian IT Industry growth
YearValues estimated at the following
exchange rates:
1998 – 99: 1$ = Rs 41.28
2000 – 20001: $1 = Rs 45.72
2001-2002: $1 = Rs 47.05
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13. (- http://www.nasscom.org/Download/ITIndustry.pdf)
SWOT ANALYSIS
Strength
Following can be termed as the strengths of “APEX WATCH WORLD”.
• Quality assured
• Discounted price for new customers online
• Designer clocks at reasonable rates
• 24- Hours customer support available online.
Weaknesses
Following can be termed as weaknesses for “APEX WATCH WORLD”.
• Customers being afraid of buying online
• Comparatively less popularity of online purchase in India
• A lot of online competition available for the company.
Opportunity
Following are termed as opportunities for APEX WATCH WORLD”.
• Increase sales by going online as E-Commerce is growing in India.
• Enhancing the watches business market.
• Provides better products and services available to customers and hence make
them for lifetime.
• Be able to make a place in the online world by adopting all the available resources
• Expanding business with low costs.
5.3.4. Threats
Following are the threats of “APEX WATCH WORLD”.
• Competition online.
• Threats from competitors sites like; www.ebay.com, www.shopping.yahoo.com,
etc.
• Customers not willing to purchase online.
• Online security
• Legal issues before you go online, like; registering the website.
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14. COMPETITOR ANALYSIS
Every business has competition and prospective business owners ignore competitors at
their peril. As this business is not in a monopoly, there will be competitors offering
alternative and substitute products and services. A competitor analysis is an important
requirement in any business plan because it (a) reveals the firm's competitive position in
the "market space" (on-line marketplace), (b) assists business to develop strategies to be
competitive, and (c) to outperform in the market.
Who are our Competitors?
Identifying competitors: The first step in conducting a competitor analysis is to identify
the competitors. This process is begun by considering the range of competition in market
space because not all competition is the same; there are different types of competitors that
the business may face.
(a) Direct competitors are businesses that are offering identical or similar products or
services as your business. These are companies that customers can easily buy from
instead of from us, so these companies represent our most intense competition. For
example, Fabmall watches (now known as Indianplaza) is an online business selling
various products including watches, where it can be said as direct competitor.
(b) Indirect competitors are businesses that are offering products and services that are
close substitutes. These competitors are probably targeting the business’s markets with a
same or similar value proposition, but delivering a different product. A classic example is
a survey General Motors conducted of new Corvette car buyers. When asked what
products the buyers considered instead of a Corvette, the usual sports cars were on the
list, but so was the Sea Ray, a sleek, fast boat. The Sea Ray was fulfilling the same basic
need as a Corvette. Similarly, there are some electronic companies which are selling their
products including the date and time functions; like digital calculators, are the indirect
competitors.
A competitor analysis grid is a valuable tool to compare competitors from a number of
perspectives -- company information, product/service information, customer information,
and sources of competitive advantage.
Strategy of Online Competitors
As the main emphasis is on E-Commerce, therefore we are mainly concerned about the
online competition that Apex Watch World will come across when starting to sell online.
Though, we have already mentioned who all will be the online competitors above, but we
also need to know on what basis, are they termed as a competitor of our business.
Following are termed as the strategy of our online competitors:
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15. • Competitors generally emphasis on improving profitability of the business.
• Product gets delivered within 5-7 days after making the order.
• They have the facility of payment on delivery as well as credit card payment on
the internet.
• Put emphasis on improving credibility.
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16. PRODUCT OR SERVICES INFORMATION
Apex Watch World has been a successful in doing the business offline. Now after the
evolution of the internet, it will start offering its products and services to its customers
online. Technology has revolutionized the way we can do the business.
The products which are to be offered online would be the brands like Nike, Adidas,
Armani, Timex and Casio. These are the high-demanding products among the customers.
Apex Watch World specializes exclusively in original/branded products and is known for
its services which it wants to continue in future while offering online. The products will
be categorized accordingly as to which they fall in, as to illuminate it; the watches would
be segmented as by different categories; men and women, where it will be offering
products for kids, youngsters and for aged people too.
Along with selling the watches, the company would be offering few clocks, watch straps,
along with this, there would be the great deal of the day, which will show different offers
everyday, followed by the category “Special Order” where the customers will be
provided with an option of placing the special order by giving the name of the product
with its details. The products list will be given to the customers on their special request
which they can buy after finalizing their product. The price range of the watches will
depend upon the particular brand, its features and the model that’s been purchased by the
customer. All our watches come with guarantee, effective from the date of delivery.
SERVICES OFFERED BY THE FIRM
At ‘Apex Watch World’ customers’ satisfaction is the number one priority. The customer
service team of the business will be there for the customers to make their online shopping
experience the best it could be.
The company has been in the service since 1998. It’s been providing the collection of
watch straps, special offers and other accessories. Moreover, along with this, the business
will be giving the limited repair guarantee for 1 year, which means that the repair
guarantee will be valid till the 12 months from the date of purchase. Resulting in some
defects due to the accidents, improper use or mishandling will totally be excluded from
this guarantee for watches. Moreover, though not included in this, as a rule of the firm,
the products once sold will not be taken back unless it has send the wrong order or if the
product is faulty.
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17. Shipping and Delivery Service
The Company has a tie up with the UPEX (a courier company), that will help in
delivering the products to our customers by maximum of 5 days. As soon as the order is
shipped, then the email will be send to the customer’s email account containing the other
personal details.
The courier charges have to be paid by the customer(s), which is charged as Rs.25/kg.
With the good relationship with the courier company the customers are benefited by
paying fewer prices for the courier.
Payment
Our prices are based on the secure online payment through ‘PayPal’. In addition our
prices include packaging, transport and insurance.
The company uses the latest encryption technology to ensure that information is
transmitted from customer’s browser to our servers safely over the Internet on a Secure
Socket Layer (SSL) link. All customer’s personal information like user name, passwords,
credit card number, transaction history are encrypted so that they cannot be read as it
travels over the Internet.
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18. MARKETING AND PROMOTION
Marketing is a very important for each and every company. Without marketing the
company cannot run smoothly. But some people have wrong interpretation of marketing
mainly being the promotional and the selling aspect. But in practical terms they are just
the two of the marketing activities.
First let us know what all form the marketing activities. All the activities that are
associated with identifying the particular wants and needs of a target market mainly being
the customers and then making them satisfied better than your competitors. For this, a lot
of market research is required which is already being carried out and mentioned before in
this business plan and then these market research will help in making strategic decisions
about the company’s product, price of the product, distribution/place of the product and
then promotion.
Hence we can define marketing as:
“Marketing is the process of planning and executing the conception, pricing, promotion,
and distribution of ideas, goods, services, organizations, and events to create and
maintain relationships that will satisfy individual and organizational objectives.”
Diagram showing 4 P’s of the Marketing Mix
Below is a diagram that shows all the major marketing activities that will help in
capturing the target market mainly being its customer’s.
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19. Now we will be taking each one of the marketing activities mentioned above in the
diagram.
Product
This activity had already been taken into account from the result of the market research
conducted by the company at the launch of its offline business. This activity involves
naming the brand or the product(s), as the company is having the number of brands so
they are already done, with which the guarantee provided for 1 year and also service at
customer’s doorstep facilities is provided..
Customers actually want to touch and feel the product, which increases the risk of
purchase. As the brands are well known and they have already built a positive image in
the market, will help to reduce this risk.
Focusing on advantages of buying online is also important for the company to achieve
increased sales. On the website it is important to convey the convenience of buying
product(s) online. Conveying the message that the product is conveniently accessible, lets
the customer understand that they don’t need to stand in lines or deal with other
customers. Long lines and other customers can keep customers from buying or decrease
the amount they are willing to purchase. Explaining the convenience of buying online is a
good way to reduce the problem of intangibility.
Moreover, customers expect high services provided by the company, eventually will take
the revenue up.
Price
For this too, a lot of market research is required. Price is very important when dealing
through E-commerce. Price can be a key issue when trying to increase demand or when
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20. decreasing demand. As e-commercializing the business process, would be the company’s
first attempt so it will enter the market using penetration pricing method.
The company would sell the brands at less than the price offered by other offline or
online watch businesses. The company’s aim is to get and retain new customers.
Therefore, it will perform each and every way out to keep strong relationship with their
customers.
Place
This activity is basically related to the distribution aspect. Even this had been taken care
of when the company was established as an offline showroom. The distribution things
what the company needs to consider are warehousing and delivering of the product.
When the business gets online, the stock will not be held up for a long time. This is seen
as the major advantage to the company. On the other hand, the problem of delivering the
product to the customers isn’t the fault of the online company. Nearly every online company
does choose to outsource the delivery function, which at this point is the most efficient.
Promotion
Promotion is an important part when selling the product; it is a necessary function for e-
commerce companies. Keeping and acquiring customers is important, but more attention is
needed on the money to be spent on the place, such as distribution functions. Some of the
budget promotion money should be spent on developing better relations with distributors.
Creating a strong bond with the delivery carriers will enhance the value of the company.
These activities are inexpensive means that can really give an added advantage to the
company. Some troubles for the company would be the inability of customers to find the web
page. If they could not find the web page, it creates a barrier in achieving increased sales. The
current technology of search engines, such as Yahoo, Google, etc, is very broad in nature.
Reducing the time spent looking for a web site can increase the satisfaction of the customers.
These were the key features in acquiring and keeping customers. This section is explained
more in detail below.
Advertisement & PromotionAdvertisement & Promotion
Advertising and Promotion typically go hand in hand. But, promotion is the less costly
means of putting the name of the business in front of the public.
There are a number of promotional strategies that can be used and/or adapted for the
business and audience. Different promotional strategies communicate different messages
to the customers. Whether the target market is based on a limited geographical area, or
the business reaches worldwide, here are basically two promotional strategies that can
develop for our business.
1. Online, and
20
21. 2. Offline
Online
Domain name-. A better way to promote the business online with the help of a domain
name is to keep the company name as its domain name, if the company is well-known.
Some studies show that 90% of the online users use search engines to find out for what
they are looking for, whatever it is. So, if domain is kept something else which is not at
all related with the business or the products or services offered by it, then it would be
difficult to build the traffic towards the website and the profit which the business should
get would go in competitors’ account.
Registering with search engines- Usually, search engines and directories like most
popular ‘Yahoo’ and ‘Google’ constantly look for new sites but it can be speed up by
submitting the websites on our own, before them. But, what about the rank that will be
given to the website? To effectively promote the website through search engines, it is
necessary that the site name should be at the top end of the result list. It should be noted
that some search engines like for example, ’Google’ ranks the website according to its
quality and the links a page receives. Search Engine Optimization is the act of making a
website content more search engine friendly to make it rank higher. This involves giving
web pages accurate titles, using Meta tags that describe what’s there on the pages, and
placing key information at the top of each page
Banner ads- Advertising for online business through banner ads seems very influential
as online users will get to know about its name and presence. Especially today, the
internet world has made banner advertising a popular and widespread form of promoting
where practically several websites have one or the other form of banner ads on it.
Emails- Of all the methods of promotion, one of the more commonly used are that of
Email Advertising. It can be very effective due to the amount of email accounts on the
internet. Website can be promoted through emails with ‘opt-in emails’. Opt in remove the
risk of being reported for spamming because everybody who receives the email has
signed a digital document (what they willingly joined) saying that they will receive
company’s Emails and Ads, basically during the time when they register to make a new
email account.
21
22. OFFLINE
The internet is very big, but its audience remains small as compared to the traditional
media. We should not stick just only with net but should top the real world also. It should
appear on every bit of marketing material that the company produces, from business
cards to brochures. Some of the offline promotional tools are as follows:-
Words of Mouth- It is a greatest promotional tool around. In this the person can mention
about the website/business while talking casually with another person without becoming
techno-bore. But if some enticing features of the website are added in the talks with some
logical relevance to the subject under discussion then there’s the opening.
Media- the media is good method of promoting offline. Specialized magazines are good
for targeting particular interest group. Like, this business is selling the watches which
come under fashion category, so when the advertisement is being made in that kind of
magazines then more customers will get attracted towards the site and therefore will
enhance traffic. Other major and popular media advertisement is ‘Newspaper’.
Radio & Television -. Radio is a relatively comparatively inexpensive way of delivering
the message to a certain community. Television is another excellent medium for
promoting goods and services. The ability to use audio visual scenes helps delivering
certain types of message to the audience more clearly than any other media, which makes
TV advertising highly effective but quite costlier than radio advertisement.
Transit Advertising- Advertising on various transports, terminals, subways are known
as transit advertising. Like billboards with this type of advertising we can target a specific
route or area. It is a great value that gives a high visibility with a consistent daily
audience. It’s economical and instantly effective without wasted circulation
22
24. There would be various people involed while doing the online business. The basic
involement would be of those who’ll be hosting the web site. The website will be hosted
by some professional personally appointed for our business tasks. It is so because the web
hosting will require a lot of technical stuff, that could only be handled by a professional.Other than this, as being online the company will be dealing globally with the customers,
so it can’t be managed by a single person or single department. Therefore, different
departments will be made for different purpose.
Sales Department-
It will look after the sales of the company. Selling products online means distributing the
ordered product at the doorstep of the customer. A lot of risk is attached as the customer
wants the product which he ordered in one piece. Hence, a separate department is
introduced to handle all these issues.
Promotional Department
The company has already assigned them the responsibility of PR. It has so far made use
of all the offline promotional tools to advertise for the offline showroom. In addition, the
same department will have to look after the online promotional tools to advertise for the
online business. The various tools that the department can use are explained in the
business plan.
APEX WATCH WORLD
I.T.
DEPARTMENT
MARKETING AND
ADVERTISING
DEPARTMENT
FINANCE
DEPARTMENT
24
SALES
DEPARTMENT
CUSTOMER
CARE
DEPARTMENT
Promotional
Department
25. Marketing and Advertising
This department will look after the marketing and advertising/promotion of goods and
services, along with the responsibility to tie up with the other responsible marketing and
ad agencies.
Finance Department
This will particullarly look after the financial transactions of the company.
IT Department
The one of the most important department that will have a major hand for this online
business. This department will look after all the technical requirements for the business.
For instance, dealing with all the technical stuff, looking after the online legal and
security issues.
Customer Care Department
Satisfying customer is the ultimate primary aim of any business. Accordingly, the
company has decided to introduce a separate department which manage and handle all
the queries and problems customers have, so that each customer can be converted to a
lifetime customer as many as possible.
FINANCIAL PLAN
Expenditure
Cost in
Rupees Total
Development of Website (for three years)
Domain Name Registration (Year(s) * price) 297.00
Web Hosting (50 MB Space) (Years * Price) 12000.00
FTP software (One Time Payment) 1350.00
Software Used (Year * Price) 18000.00
Internet Connection Registration (One Time Payment) 700.00
High Speed BroadBand Connection (months * Year * Price) 36000.00
68,347.00
Electronic Equipment
Personal Computers (number of items * Price) 120000.00
Telephone (number of Items * price) 5000.00
1,25,000.00
25
26. Marketing and Advertising
Ads in Hindustan Times ( Every Weekend for 1 year ) (Week * Month * Price)
Ads in Times of India ( Every Weekend for 1 year ) (Week * Month * Price)
36000.00
12000.00
BillBoards (1 Year) 10000.00
Banner ads in yahoo and hotmail (3 Months) 24000.00
Ads on Cable TV (30 seconds) 6 Months) 45000.00
Brochures 4000.00
1,31,000.00
Legal and Consulting Charges
Getting Copyrighted 1000.00
Fee to legal consultant 10000.00
11,000.00
Total Financial Requirement 3,35,347.00
Means Of Finance Cost in Rupees Total
Loan @ 11.5% 100000.00
100000.00
Expected Number of Purchases from Website by consumer (for 3 Years)
Products Years Details (Units *Months) Total Sales (in Units)
Watches/Clocks/Watch Straps 1 40 * 12 480
Watches/Clocks/Watch Straps 2 50 * 12 600
Watches/Clocks/Watch Straps 3 60 * 12 720
1800
26
27. YEARLY ASSUMPTIONS
ASSUMPTION FOR FIRST YEAR (2008)
Monthly Revenue For The First Year (2008)
Months Products purchased By Customers (Rs.)
April 25,000.00
May 25,000.00
June 25,000.00
July 25,000.00
August 25,000.00
September 25,000.00
October 40,000.00
November 25,000.00
December 40,000.00
January 25,000.00
February 40,000.00
March 25,000.00
345,000.00
MONTHLY EXPENDITURE EXPECTED FOR THE FIRST YEAR
1 2 3 4 5 6 7 8 9 10 11 12
Products
Purchase 35000 20000 18000 15000 25000 40000 15000 25000 50000 45000 55000 28000
Marketing 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000
Salary of
Employees 15000 15000 15000 15000 15000 15000 15000 15000 15000 15000 15000 15000
Transport 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000
Maintenance and
updating of
website 1265 1265 1265 1265 1265 1265 1265 1265 1265 1265 1265 1265
Telephone and
internet 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000
Electricity and
Power 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000
Total
Expenditure 65265 50265 48265 45265 55265 70265 45265 55265 80265 75265 85265 58265
TRADING AND PROFIT AND LOSS ACCOUNT as on 31st March 2008
27
28. Particulars Amount (Rs.) Particulars Amount (Rs.)
To Opening Stock 75000.00 By Sales 445000.00
To Freight 1500.00
To Gross Profit 368500.00
To Bank Loan 4,584.00
To Salaries 180000.00 By Gross Profit (transferred) 368500.00
To Printing and Stationery 1000.00
To Internet Rent 36000.00
To Website Hosting 334.00
To Electricity 18000.00
To Marketing 43666.00
To Net Profit before tax 84916.00
368500.00 368500.00
BALANCE SHEET AS ON 31st March 2008
Liabilities Amount (Rs.) Assets Amount (Rs.)
Capital 378873.40 Cash At Bank 21290.00
Profit and Loss Account 84916.00 Cash in hand 45000.00
Electronic Equipments:
41666.00
Less: Depreciation
4166.60 37499.40
Transport Vehicles:
400000.00
Less: Depreciation
40000.00 360000.00
463789.40 463789.40
28
29. ASSUMPTION FOR SECOND YEAR (2009)
QUARTERLY EXPENDITURE EXPECTED FOR SECOND YEAR
EXPENDITURE FIRST SECOND THIRD FOURTH
Products Purchase 90000 85000 75000 100000
Marketing 9000 9000 9000 9000
Salary of Employees 45000 45000 45000 45000
Transport 15000 15000 15000 15000
Maintenance and updating of website 3795 3795 3795 3795
Telephone and internet 6000 6000 6000 6000
Electricity and Power 12000 12000 12000 12000
Total Expenditure 180795 175795 165795 190795
Quarterly Revenue Expected For The Second Year
Means Of Revenue First Quarter Second Qaurter Third Quarter Fourth Quarter
Product A 30000 35000 50000 75000
Product B, C, etc 45000 60000 80000 100000
Sub Total 75000 95000 130000 175000
Other Sources Of Income 750 750 750 750
Total Revenue 75750 95750 130750 175750
29
31. Particulars Amount (Rs.) Particulars Amount (Rs.)
To Opening Stock 280570.00 By Sales 935233.00
To Freight 15000.00 By Advertisement 2500.00
To Gross Profit 642163.00
To Salaries 180000.00 By Gross Profit (transferred) 642163.00
To Printing and Stationery 6000.00 By Income Tax 129673.00
To Internet Rent 12000.00
To Website Hosting 12000.00
To Electricity 18000.00
To Marketing 43666.00
To Net Profit Before Tax 370497.00
To Net Profit After Tax 129673.00
771836.00 771836.00
BALANCE SHEET AS ON 31st March 2009
Liabilities Amount (Rs.) Assets Amount (Rs.)
Capital 318076.46 Cash At Bank 24000.00
Profit and Loss Account 129673.00 Cash in hand 66000.00
Electronic Equipments: 37499.40
Less: Depreciation 3749.94 33749.46
Transport Vehicles: 360000.00
Less: Depreciation 36000.00 324000.00
447749.46 447749.46
ASSUMPTION FOR THIRD YEAR (2010)
31
32. Quarterly Revenue Expected For The Third Year
Means Of Revenue First Quarter Second Qaurter Third Quarter Fourth Quarter
Product A 45000 55000 70000 100000
Product B, C, etc 45000 60000 80000 100000
Sub Total 90000 115000 150000 200000
Other Sources Of Income 750 750 750 750
Total Revenue 90750 115750 150750 200750
QUARTERLY EXPENDITURE EXPECTED FOR THIRD YEAR
EXPENDITURE FIRST SECOND THIRD FOURTH
Products Purchase 100000 90000 85000 115000
Marketing 9000 9000 9000 9000
Salary of Employees 45000 45000 45000 45000
Transport 15000 15000 15000 15000
Maintenance and updating of website 3795 3795 3795 3795
Telephone and internet 6000 6000 6000 6000
Electricity and Power 12000 12000 12000 12000
Total Expenditure 190795 180795 175795 205795
TRADING AND PROFIT AND LOSS ACCOUNT as on 31st March 2010
Particulars Amount (Rs.) Particulars Amount (Rs.)
To Opening Stock 312540.00 By Sales 1000000.00
32
33. To Freight 15000.00 By Advertisement 2500.00
To Gross Profit 674960.00
To Salaries 180000.00 By Gross Profit (transferred) 674960.00
To Printing and Stationery 1000.00
To Internet Rent 12000.00 By Income Tax 142902.90
To Website Hosting 12000.00
To Electricity 18000.00
To Marketing 43666.00
To Net Profit before tax 408294.00
To Net Profit after tax 142902.90
817862.90 817862.90
FINANCIAL ANALYSIS
GROSS PROFIT FOR THREE YEARS
BALANCE SHEET AS ON 31st March 2010
Liabilities Amount (Rs.) Assets Amount (Rs.)
Capital 29971.62 Cash At Bank 35000.00
Profit and Loss Account 142902.90 Cash in hand 85000.00
Electronic Equipments: 33749.46
Less: Depreciation 3374.94 30374.52
Transport Vehicles: 324000.00
Less: Depreciation 32400.00 291600.00
441974.52 441974.52
33
34. First Year Rs. 3,68,500
Second Year Rs. 6,42.163
Third Year Rs. 6,74,960
Projection of Gross Profit for 3 Years
0
100000
200000
300000
400000
500000
600000
700000
800000
1 2 3
Years
GrossProfit(InRupees)
NET PROFIT FOR THREE YEARS
34
35. First Year Rs. 84,916
Second Year Rs. 1,29,673
Third Year Rs. 1,42,902.9
Projection of Net Profit for 3 Years
0.00
20000.00
40000.00
60000.00
80000.00
100000.00
120000.00
140000.00
160000.00
1 2 3
Years
NetProfit(InRupees)
BREAK-EVEN ANALYSIS
35
36. Break-even analysis is done to calculate the break-even point. The break-even point
refers to the point at which the company will neither be at a profit nor a loss.
Initially in the first year, the company will earn less profit but then expected to achieve its
break even at the end of the second year.
The company aims to achieve its break even at the end of the Second year. As it is
expected to earn a profit of Rs. 1, 29,673 after paying a tax@35% on the total profit
earned during this month.
INTEGRATED WEBSITE SOLUTION
Introduction
36
37. Before planning to go online, the company first needs to specify and note down the
resources that it will require in order succeeding online.
To begin with, we can categorize the resources that the company may require to transfer
its offline business into an online business. The main technical requirement for the
company is to make a website for its online presence.
The company’s website will offer the following to its customers:
• The customer can know about the full history of Apex Watch World.
• Through the website the customer will be able to contact the company much
easier as compared to an offline facility.
• The online shop will be opened for the customer 24X7 i.e. it can buy
watches/clocks any time online.
• Complete information will be given on the website regarding the company’s
product and services and also the ways in which the customer can contact it.
• All the frequently asked questions regarding the online purchase will be given on
the website.
In the beginning the website will be offering the few products it can to its customers but
gradually it will implement other features when required in the second phase of the
business.
Technical requirements
In order to make a good website, the company will have to incur costs on some technical
requirements.
Let’s begin with the hardware requirements.
• Hardware Requirements:
In order to go online, the company will require some hardware components. To begin
with, the company will require computer systems which are considered one of the most
important hardware in order to go online.
The company is already well established offline, hence it will require at the most of 4-5
computer systems. Though, the computer is already available, but it has its offline usage.
Through these computer systems controlled by different departments (IT, Sales, Finance)
all the online transactions will take place by our online company.
One computer system will approximately cost around Rs. 25000 to Rs. 30000 depending
upon the specifications and additional features required. The following are the
specifications for a computer system:
37
38. • Intel Pentium 4 Processor with HT technology for enhanced performance &
system responsiveness.
• The preferred USB keyboard with Fingerprint Reader offers convenience, to
gain access to confidential files with the swipe of a finger rather than typing
passwords for many applications. This biometric solution to authentication
provides the strongest standard PC security available.
• Integrated Intel Graphics Media Accelerator 950 with an upgradeable 16x PCI
express slot.
• Eight USB 2.0 ports.
• RAM DDR memory.
• Optional wireless LAN PCI Adapter & optional wireless access points.
• Integrated Gigabit Ethernet for outstanding speed and performance.
• CD-ROM Drive.
• TFT LCD Monitor.
• Speakers/Headphones.
• Motherboard.
• Uninterruptible Power Supply (UPS)
• Scanner
Carrying out an online business we need to use the available latest or best technologies in
order to carry out safe transactions and also to secure the customer as well as
organizational database.
• Software Requirements:
The main software that will be required by Apex Watch World are mainly the M.S. office tools,
web based tools for make the website which include Dreamweaver, Paint, Adobe Acrobat
Photoshop, Swish Max for Flash effect, Microsoft Access for database, High Speed
Internet Connections, Anti-Virus Software etc.
The above mentioned software are some of the most important ones that will be required
by the company. As time passes more software may also be used depending upon the
requirement or situation then.
Software requirements are the basic things that mostly work for web designing. It all
depends upon business to business that how much and what all it needs as what’s been
planned for its website. It plays an important role in web designing. So according to the
website requirement the basic requirements are as follows:
PC Web browser
38
39. Web browser (whatever it may be) is the program that presents web pages for the viewers
on their computer. People use it because it supports the HTML codes the server sends and
that are what comes from the website and then gets delivered to the viewer’s.
Macromedia Flash Player.
Macromedia Flash is the most advanced authoring environment for creating interactive
websites. It provides full design control to maximize creativity, resulting in a consistent
end-user experience across a variety of platforms. Flash technology is basically used for
adding animation and interactivity to web pages; several software products, systems, and
devices are able to create or display Flash.
Adobe Photoshop.
Adobe Photoshop is a professional image editing software package that can be used by
many experts and novices. It the most popular program for creating and modifying
images for the web.
Macromedia Dreamweaver.
Macromedia Dreamweaver is the web development tool by Macromedia. It supports well
for many web technologies like various server-side scripting frameworks. It makes
possible many non-experts users to easily create the web pages and sites.
SwishMAX
SWiSHmax has a simple yet powerful menu interface that includes useful tools such as
the ability to add effects to multiple objects at once, a timeline editor and page tabs that
help you manage dynamic content, easy to use input forms, a JavaScript-like scripting
language and advanced compression features that help you keep your Swish (.SWF) files
small. Plus, it even allows you to create and distribute your own custom Flash effects!
Operating System
The company will use Windows XP Professional Service Pack 2 on all its systems due to
its highly advanced security features such as pop up blocker, windows firewall, and also
for user-friendly interface. It also provides wireless support and provides easier access to
windows updates.
ONLINE THREATS AND REMEDIES
39
40. This is termed as a very important part for the company and its customers. The main
concern for the company is to remove all the threats that may creep in while doing the
online business.
Now, we will note all the possible online threats that may creep in during the business
and give useful remedies for each one of them.
• Password Cracking:
This is a very common problem in any E-Commerce business. There are many people
around the world who guess the password of the company’s network system and leak all
the confidential information.
This problem can be dealt by using appropriate software that will not let anyone use
insecure passwords. The user will have to select a password of 8 letters.
• Virus attack:
Nowadays computers are being attacked by viruses all over the world. The user needs to
take special care when downloading or adding something to the company’s database. But
still the company has installed Norton Anti Virus software, which will give alerts to the
company’s IT department if any virus found.
• Software breakdown:
If this problem creeps in the company then everything gets finished. In order to avoid
such problem the company will hire I.T. Experts that look into each and every minor
problem in the software system.
• Frauds on the Internet:
It is the most important and a very critical aspect for any online business. The company
needs to make sure that they have genuine customers making the orders and not frauds.
Secure Electronic Transfer Gateway will be used by the company that will enable secured
credit card transactions on the internet. By employing digital signatures, SET will enable
our company to verify that buyers are genuine who they claim to be, by encryption and
decryption of the information/transactions. And it will protect buyers by providing a
mechanism for their credit card number to be transferred directly to the credit card issuer
for verification and billing without the customer being able to see the number.
WEBSITE STRUCTURE
40
41. CONCLUSION
New User
Register
Watches Watch Straps Hot Shoppe
41
Home Page About Us Contact UsProducts Feedback F.A.Q. Login
Privacy Policy
Administrator
Payment
Return Policy
Select You
Product
Login
Clocks
Privacy Policy
Administrator
Payment
Return Policy
Index.html
42. It has been so far proved that ApexWatch World, an offline business has gained so much
whether if it is talked about reputation or profits. It has outperformed pretty well with its
competitors. The business is moving for online technology because of the large scope
where it could find more of its real customers and to build up its image
This business plan has properly examined the financial aspects of the business, marketing
strategies; advertisements and promotion and the action plan what has to be followed for
the business.
The conclusion is that, a business which has been running successfully since its
establishment without any fail, so it is for sure that the business will be benefitted after
going online. The company has decided; after the successful operation in national market
it will open the doors for international buyers too.
REFERENCES
42
43. http://www.learnmarketing.net/promotion.htm
http://www.marketresearch.com/error.asp?
errorcode=3&productid=172313#pagetop
Finch Brain, “Business plans: 45 ways to get yours taken seriously”
http://www.leveltendesign.com/kb/terms/online_promotion.php
http://www.akamarketing.com/offline-promotion-tutorial-guide.html
http://www.ehow.com/how_12568_create-financial-.html
http://www.bplans.com/dp/article.cfm/148
http://www.nasscom.org/Download/ITIndustry.pdf
http://emarketingman.com/
APPENDIX A
43
44. SAMPLE QUESTIONNAIRE
Name: _____________________________________________
Address: ___________________________________________
Age: _______________________________________________
Gender: ____________________________________________
1. Are you familiar with online purchase?
a) Yes
b) No
2. How often do you access the internet?
a) Daily
b) Weekly
c) Monthly
d) Annually
3. How often do you visit the Apex Watch World Showroom to buy clocks/watches?
a) First time
b) Regular customer
c) Sometime visitor
4. Are you willing to purchase the same product from the company’s website rather
than from the showroom?
a) Yes
b) No
5. Have you ever made an online purchase?
a) Yes
b) No
6. If yes, then were you satisfied?
a) Yes
b) No
7. Are you comfortable in revealing you credit card numbers online?
a) Yes
b) No
8. How much is your budget when you buy online?
a) 5000-10,000
b) 1000-5000
c) 100-900
d) Other
9. Are you happy with the delivery of the product at your doorstep?
a) Yes
b) No
44
45. 10. Will you purchase from the Apex Watch World Company’s website?
a) Yes
b) No
11. What fascinate you the most?
a) Looks
b) Price
c) Other ______________________________________________.
12. Did you face any difficulty while purchasing the product from the company? If Yes
then what?
a) Yes ______________________________________________________________.
b) No
13. Which watch brand(s) do you like?
a) _______________
b) _______________
c) _______________
d) _______________
e) _______________
14. From where did you hear about the Apex Watch World?
a) ________________
b) ________________
c) ________________
d) ________________
e) ________________
15. What changes would you like us to bring in future? Where do we need to improve?
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
APPENDIX B
45
