“ROAR MOBILE STORES”

(BUSINESS PLAN)

(2013-2014)

Address: Metro Mall, Kalyan (East)

NAME ROLL.NO

Vikas P. Mishra 106

Rakesh S. Amin 109

Omkar A. Shinde 108

Azhar N. Shaikh 107

Roger Y. Peter 110

Rahul N. Takale 105

Umesh S. Dasoni 122

EXECUTIVE SUMMARY

Our store is dedicated to provide customers with wide range of Mobile phones providing high customer satisfaction by rendering excellent service, quality products, and furnishing an enjoyable 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 loan

will be paid from the cash flow from the business, and will be collateralized by the assets of the

company, and backed by the character, experience, and personal guarantees of the owners.

Keys to Success

The 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 business

hours.

INDUSTRY ANALYSIS

Mobile Industry Analysis

The following is the analysis of cell phone industry, which deals with cell phone manufacturers

as well as cell phone services:

Dominant Economic Indicators

1. Market Size:

The cell phone industry is one of the fastest growths besides the Internet. Cell phones have gone

through a huge change and its market has expanded globally. Since 1994, the cell phone

industry has increased from 24 million to about 182 million in wireless phone and related

devices operating in the United States with some 162-million mobile-phone users in the United

States alone.

The cell phone market is increasing very fast with today’s ever-emerging technology and

innovation in improving cell phones. Today, society is living with advance technology and

everyone wants to keep pace with the new technologies. Cell phone industry is growing larger

because it has become a necessity. Parents are getting mobile phones for their teens because

they want to communicate in case of an emergency and the wireless carriers have made it easy to

add users to their existing plans. And carriers are becoming successful in getting parents to

expand their plans to include their teens. This increases buyers and increases market size

worldwide.

2. Scope of Competitive Rivalry:

The cell phone industry has become increasingly larger within the last three years as a result of

more affordable cellular phones as well as lower service costs. Companies are competing in an

advance technology and communication sector in which success attracts customers to buy

theiproducts and services. The market is very competitive because they offer the same products

and services, but has different physical attributes to the phones and different costs, which buyers

have 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 industry

very 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 phones

3. Stage in Life Cycle: Mobile Industry

SWOT Analysis

SWOT Positive Negative

Internal

Factors

Strength

High technological advancement Large customer base Increasing disposable income of the

people Greater number of Telecom service

providers thus high demand of mobile phones

Government policies to support the industry

Weakness

Highly Competitive Intensive R&D required Low end products yields very less

margin

External

factors

Opportunity

Rural market is very less penetrated so great opportunity ahead

3G auction has paved the way for highly sophisticated mobiles.

I-pods, Smart-phones are highly demanded

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

Threats

Very lucrative industry, and low barriers to enter in the industry

Unorganized sector Need to look for each social class Need to keep abreast with the

technology

4. Numbers of Companies in India:

1. NXG Electronics 28. Gfone 55. Munoth Mobiles 82. Technotouch

2. X Electron 29. G-Five 56. Nokia 83. T-Series

3. CAPLIGHT 30. Haier 57. Nelson 84. Ultra Mobile

4. AASTHA mobile 31. Hansum Mobiles 58. Olive 85. UNITEL

5. Airnet 32. Hawkman Mobile 59. Onida 86. UNIX Mobiles

6. AZ LINK + 33. Hitech Mobiles 60. Orion Mobiles 87. Usha-Lexus

7. Ajanta Mobile 34. Hp 61. Orpat 88. Vodafone Essar

8. Anconn Mobile 35. HTC 62. pagaria 89. Videocon

9. Airphone 36. I-Tel 63. Philips 90. Voice

10. AROMA Mobiles 37. ICube 64. Pride Mobiles 91. VOX

11. Asiatelco 38. Intex 65. Philiray 92. Winncom

12. BlackBerry 39. Ion 66. Kuantum 93. Xcite

13. BLEU 40. iNQ 67. KOPPERR 94. Zen Mobiles

14. Beetel 41. Karbonn Mobiles 68. Quba Mobile 95. RK Mobile

15. BPL Group 42. Lava Mobiles 69. Rage 96. ViP Mobile

16. Byond tech 43. Lemon 70. Ray 97. CAPLIGHT

17. Colors mobile 44. LONGTEL 71. Swissvoice India 98. Alcatel

18. celkon 45. Lexus 72. SAGEM 99. Spice

19. c-Tel 46. LG 73. Samsung 100.  MVL

20. Daya 47. Logitec 74. San Mobile 101. Nova mobiles

21. Dell 48. Magicon 75. Sansui 102. Mobell

22. Digibee Mobiles 49. Maxwood Mobiles 76. Siemens 103. Akai mobiles

23. eTouch 50. Maxx 77. Simcom Mobiles 104. AZ Link Anycool

Mobiles24. Fujezone 51. Melbon 78. Simoco

25. Fly 52. Micromax Mobile 79. Sony Ericsson 105. QUBA mobile

26. Fortune 53. Motorola 80. Speed Mobile 106. ACER MOBILE

27. GEEPEE Mobiles 54. Movil  81. Spice Telecom

5. Customers:

Cell phones are attractive targets that are small, expensive, and useful. With the list of features

and data applications available on mobile phones, which is continuing to grow and emerge; cell

phones are not only a luxury but also necessity. Cell phone users use cell phones for more than

just talking; the mobile services consumer wireless usage study found that 56 percent of

customers used their cell phones as cameras, clocks, calendars, music players, and other non-talk

functions. 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 paying

too much for cellular phone services.

There are numerous complaints about low quality service in the industry due to the competition

between companies. By lowering costs for the services, the company will lose profits and reduce

their shares. Customers today, typically complain about the high cost for the services of having

to stay on a contract for a long time and paying an early cancellation fee. Also, with low service

line, customers rather pay higher price for better services such as receptions.

Cell phone companies know that consumers dislike mobile-phone services. In fact, mobile

phone services were the second lowest-ranked industry. Mobile companies were also the

number two sector in complaints in 2005. Many companies claim that consumers love their cell

phones and that they’re very happy with the services, which is a half truth. Consumers complain

frequently about dropped calls, lousy customer service and exorbitant penalties from exiting

a 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 market

to be more competitive.

7. Product Characteristics:

In the cell phone industry, the products and services are highly standardized. In the past, the

products 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 are

able to make it attractive.

8. Scale Economies:

There are two types of economies of scale pertaining to the cell phone industry. They are the

internal and external economies.

InternalInternal 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 and

revenues to enlist other products and services that are featured with cell phones. Cell phone

companies work with manufacturers to create new technological and innovative cell phones in

the market today to attract consumers. A valuable capital in the cell phone industry is the

consumers 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 are

eager 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 a

large number of customers, and have the financial resources required in building and maintaining

a large network of communications devices. Smaller companies can also compete, but only in

small markets or by provide specialty services.

Total capital requirement to start a business in selling cell phones requires a capital investment

between $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 and

marketing their products. Companies also want to spread their companies out through

franchises, because more offices mean more visibility in drawing consumers in to buying their

products and services.

11. Industry Profitability:

The cell phone industry will remain a competitive market and will increase continuously with a

total of 1,200 wireless companies with total annual revenue of $100 billion. The profitability of

individual companies is driven mainly by their ability to develop new products, providing better

service, making their products affordable for consumers. Profitability of companies is achieved

also by taking advantage of marketing their products, have access to capital, and by inquiring the

expertise to improve the cell phones.

The profitability of the cell phone industry is dependent on the volume of consumer they can

attract. The profitability of companies has increased drastically since 2002 and will continue to

increase as new cell phones are improved. Since 2004, the financial markets of cell phone

companies seem to increase fast because of the new technologies and services that companies are

offering consumers, and at the same time they compete for customers. Although there are

complaints and dissatisfaction from consumers, cell phone and the service along with it has

become 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 a

slight decline; worldwide shipments of cell phones rose 26 percent in the first quarter of 2006

compared with the same period last year. Currently today, the global market continues to thrive

on consumers replacing older phones with new purchases, a total of 226.7 million mobile

phones. 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 of

60.6 gains and is controlling 20.3 percent of the market. Samsung has shipped over 29 million

phones and is in third place with a decrease in sale to only 18.4 percent growth. LG came fourth

for market share with 6.9 percent and experienced an operating loss for the quarter due to

marketing expenses and fewer sales.

The cell phone industry looks strong and competitive between the companies and service they

provide. Even more as new options are in place, such as, allowing consumers to keep their

numbers while switching carriers.

Different Product Opportunities

Mobile Handset

Cell phones of different brands.

Accessories

Cell phone related accessories like Bluetooth, Head phones etc.

Industry Trends

Technology

There 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 Design

Cell phones will become much more powerful, and designs will continue to morph into ever

more complex, multi-purpose personal communication devices, including the growing use of the

cell phone as a financial transaction device. Batteries for wireless devices will begin to last much

longer as well.

Market Growth

Although cell phone markets are relatively mature in the U.S. and in major developed nations

everywhere, the number of subscribers nonetheless continues to grow in these countries. In the

U.S., new subscribers tend to be those on lower-cost plans and children. Already, 40% of 12- to

14-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 nations

worldwide. The largest nations include Sweden, the U.K, and the Netherlands followed by

China and India.

Security Issues

Security issues such as eavesdropping on Bluetooth conversations, hacking into Wi-Fi networks

and viruses spread among cell phones will require more attention and investment from the

technology and telecommunications sectors. The estimate is that the global market for mobile

phone security software will reach $1 billion by 2008.

Mobile Commerce (mCommerce)

Mobile Commerce, also known as mCommerce, will emerge and create mobile subscriptions and

advertising opportunities for companies ready to embrace mobile subscribers. The cell phone can

is also going to be considered a “digital wallet.” In Europe and Asia, many people pay at the

register by reaching for their cell phone instead of their wallets. The phones facilitate

transactions between the point of sale and the user's credit, bank, or cellular account.

Key Success Factors

There are factors that are necessary to attract customers, compete, and ultimately be successful in

the cell phone industry. For a company to be successful in the cell phone industry they can

create value by providing the basic features, technical features, and support to back up those

features.

Basic

These features are assumed to be included and expected in a basic cell phone package to satisfy

the simplest customers.

Caller ID Line Block

Call Forwarding

Call Hold

Call Waiting

Caller ID

No Answer Call Forwarding

Three-Way Calling

Voicemail

Technical

These features go beyond the basics and provide the technical features to attract the savviest of

cell 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 removable

Support

Every company can provide the basic and technical features but the ultimate test for success or

failure is decided by the support the cell phone company can provide to their subscribers.

Industry Prospects and Overall Attractiveness

Factors Making the Industry Attractive

A Federal Communications Commission report stated that over the past four years landline usage

has decreased by 30 million users. There are great opportunities right now to get a lower price or

a lot more minutes on a cell phone. The cell phone industry is offering unlimited plans in

growing numbers. The word cell phone has become a familiar usage across the globe, especially

in developed countries.

The Cell Phone Service Providers have made provisions to allow users to access the Internet

through the cell phone, without taking the pain to log into their computers. Cell Phones now can

be used as planner, navigation system and for games. Also, Steve Jobs the owner of Apple has

enabled the innovative invention of the Motorola hybrid phone, which has an iPod with the cell

phone. The cell phone is one technology where people of different ages can use without any

hesitation. 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 teenage

population very fast. The national network, Sprint is on the verge to launch cell phones that are

custom handsets, which contains phone contents such as Disney ring tones and games. This is a

way where the cell phone industry can open a whole new arena for attracting a market for

children. Also, there is the new culture of SMS (Short Message Service), which is a new way to

send text messages. SMS is quite popular among teenagers and college students, which helps

everybody to keep in touch with friends and family.

Factors Making the Industry Unattractive

Mergers might be good for the cell phone service providers, however, if the nation’s leading cell

phone companies merge, there will be less competition in the market, causing prices to increase

than before. With large mergers like Cingular and AT&T, there is the risk of a monopoly in the

market, which can charge the highest possible prices to consumers. This will definitely pose a

threat to consumers, because the number of options of choosing one cell phone service provider

over another is reduced.

Special Industry Problems and Issues

As with new technology, health concerns have risen with the use of cell phones. There are

certain studies that show a few cases of tumors or cancer that develops as result of using cell

phone for long periods of time. According to the Food and Drug Administration, these health

problems are said to be caused due to the radiations emitted from cell phones. Also, these

radiations tend to cause birth defects due to genetic mutation.

In addition, many incidents of road hazards occur because of the use of cell phones. Many

accidents involving a driver being distracted by talking on a mobile phone have begun to be

prosecuted 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 the

bombings that occurred in 2004 at Madrid, was from a cell phone. So there are major security

concerns of the cell phone that has to be looked into.

VENTURE DESCRIPTION

Company Summary

“Roar Mobile stores”, upon the commencement of operations, will sell a wide range of mobile

phones & accessories to the target customers. We will provide quality product from range

varying accordingly. “Roar Mobile store” will be a part of tough competition due to presence of

E-zone and Mobile Stores.

The Retail outlet will be located in a Metro mall at Kalyan. The outlet will utilize 2,500 square

feet. The location is strategically situated on one of the busiest place of Kalyan. It is a high

profile area, with easy access from all parts of city.

Start-up Summary

The start-up capital will be used for the design, leasehold improvements, and infrastructure of the

outlet.

Leasehold improvements will amount to approximately Rs.12,00,000 , and shop’s infrastructure

will cost about Rs.20,00,000. The owner will invest Rs. 80,00,000 for cash-on-hand at starting

date.

Start-up Requirements

Start-up Expenses Amount (in Rs.)

Rent deposit 75,000

Other 0

Total Start-up Expenses 75,000

Start-up Assets

Cash Required 8, 00,000

Other Current Assets 7, 00,000

Long-term Assets 25, 00,000

Total Assets 40, 00,000

Total Requirements 40, 00,000

Start-up Funding

Start-up Expenses to Fund 32, 00,000

Start-up Assets to Fund 40, 00,000

Total Funding Required 72, 00,000

Assets

Non-cash Assets from Start-up 7, 00,000

Cash Requirements from Start-up 6, 00,000

Additional Cash Raised 0

Cash Balance on Starting Date 6, 00,000

Total Assets 13, 00,000

Liabilities and Capital

Liabilities

Current Borrowing 0

Long-term Liabilities 7, 00,000

MANAGEMENT AND HUMAN RESOURCE PLAN

Management Summary

Roar Mobile stores will be organized and managed in a creative and innovative fashion to

generate very high levels of customer satisfaction, and to create a working climate favorable to a

high 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 has

to be satisfied and which would be the utmost priority for Roar Mobile stores along with earning

healthy and fair margin of profit. As the business grows, the company will consider offering an

employee benefit package to include health and vacation benefits for everyone.

Personnel Plan

The personnel plan calls for a Sales team of 12 who will entertain customers demand and will

deal accordingly as per their requirement and Shop will also have a technician. Everyone will be

contract workers, and will be paid a fixed remuneration along with sliding commission scale

based on the amount of revenue created. Future plans include the hiring of one more technician

so that better after sales service could be provided as the business expands.

MARKETING PLAN

Strategy and Implementation Summary

Providing good quality product, Skill at what we do, good customer service, and creating a

pleasant environment for our customers will be important to implementing our business plan.

Competitive Edge

Roar Mobile Stores wants to set itself apart from other Mobile retail outlet that may offer almost

same types of product & services. Having gone through such outlet a customer would realize

what makes Roar Mobile store different, friendly and customer slanting environment with best

quality products of different price range and customer oriented schemes like Easy monthly

installment 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 do

not intend to compete with these so called "Big Fish" We wish to make Roar Mobile store a

brand and wish to be called as one among Big Fish in next 3-4 yrs.

Marketing Strategy

Our marketing strategy is a simple one: satisfied customers are our best marketing tool. When a

customer leaves our outlet with a new cell phone, he or she is broadcasting our name and quality

to the public.

No major advertising campaigns are anticipated. Our research says that “Word of Mouth” is the

best advertising for this type of business. We will, however, advertise through 3 huge hoardings

in the city one of which will be outside the metro mall while other would be one near crowded

Kalyan railway station and other outside Birla college.