Business Plan for Maple exclusive Online Store Selling range of Apple and its affnity products.

By Prashant Chauhan .Email :prowebb@gmail.comPhone: 92235442662

Index

1. Summary

2. Market Analysis Summary 2.1) Market reaserch and analysis for apple products in india offline market2.2) Market reaserch for online market for apple products in india with emerging Trends 2.3) Analysis of Various Online Ecommerce Channels2.4) Competation analysis2.5 ) SWOT Analysis

3. Strategy and Implementation Summary 3.1 ) Implementation Strategy Summary 3.2) Ecommerce Store and various Channels

4. Finaicial Planing

4.1) Startup funding requirnmnet 4.2 ) fixed cost and Operational Expenses4.3) Break even analysis 4.3) Sales Forcasting,revenue and profit/loss projections

1 .Summary

Introduction : Maple Digital Technology International Pvt. Ltd. is a pioneer in providing Indian customers a complete experience of the cutting edge technology of Apple. We assist our customers with everything – starting with buying their first Apple device, to setting up a complete solution tailored to their needs.

Objective to launch a ecommerce store :

India’s e-commerce market is worth about Rs 50,000 crores in 2011. About 80% of this istravel related (airline tickets, railway tickets, hotelbookings, online mobile recharge etc.). Online retailing comprises about 15%. India has close to 10 million online shoppers and is growing at an estimated 40-45% CAGR vis-à-vis a global growth rate of 8-10%. Electronics and apparel are the biggest categories in terms of sales.

Maple being a premium reseller of apple products want to tap in the online market oppurtunity by launching a online store selling exclusive range of apple and its compitable products.

2.Market Analysis Summary

Market reaserch analysis for apple products in india offline market

a) Market size of apple products in reatil offline Market is estimated to 6000 Cr Rs as of Dec 2012

b) The company products are retailed by 35 Odd Apple premium reseller(APR) and muli brand retail outlets I.e Croma ,vijay sales ,reliance retail etc

Assumption based on report and varous sources

Estimated Market Size for apple products sold in 2012 > 6000 CR rs

Number of ARP (Apple premium reseller) 35

Number of Multi Brand retail selling apple products 5-8

Source : DNA Article on Apple for 2012link :http://www.dnaindia.com/analysis/column_will-india-scuttle-potential-rs700-cr-investment-of-apple-stores_1670708

Market reaserch for online market for apple products in india with emerging Trends

Online Market size for apple product :

Estimated Market Size of apple product sold online in india through various online channels in2012 is expected to be greater than 3 % of its offline market of 6000 Cr and estimated @ 180 Cr Rswhich is estimated to grow at CAGR 8 -10 % .

Apple products sold online per year as of 2012 180 Cr

Compound annual growth rate of market (CAGR) 8-10 %

Estimated market in next Three years by 2016 Approx 250 – 350 CR

(The ratio is derived by studying overall Etailing Market vs Offline Retail market applied to Apple Products sold online Vs Offline)

Google Trend and keyword analysis

Search Trend for apple products in india by Google insight

the trend shows step incress in online searchs for apple products from 2004-2013

The the report shows major kewords used by people to search for appple related products and region from india where searches are originated with “Apple india” as major keyword and state of jamu and kashmir with most number of searches

The report also shows major searches for apple producs is generated from tire 2- tire 3 cities like ludhiana from state of punjab where presence of apple retail stores is absent

Online Market Size of apple products

Based on the assumptions the below

Apple products sold online in india 180 Cr

Avg transaction value of apple product sold online 18000 RSNumber of apple product sold per year online 1,00,000 Orders

Number of apple products sold per Month 8334 Orders per monthApple product sold per month revenue 15 Cr rs Number of apple products sold online per day 288 Orders per day Apple products sold per day revenue 0.5 Cr Rs per day

Competation Analysis:

In india apple products are sold online by multibrand online retailers and apple resellers as a vendor on various market places as ebay.com ,indatimes.com , etc

Competation Example

Multi Brand Online Retailers Flipkart.com,infibeam.com,naaptol.com,rediff.com etc

Apple resellers selling online through Online Market place and channels

Ebay.com, indiatimesshopping.com,junglee.comand various small ecomomerce portals

reliance istoreApple premium resllers (APR)

SWOT Analysis

Strength Weakness

Threat

Maple being (A P R) in india can provide its customer with higer value proposation In terms of value added services then its Competations

Oppurtunity

Maple is a strong offline player with no online presense,being a new entry to online market it may take quite a Learing curve to get adapted to online market dynamics to capture market share and become strong online market Player .

a)Online Market for apple product is estimate at 180 Cr as of 2012 and is assumed to grow at 8-10% CAGR per year. b)Online channel is much more cost effective as compaired to physical store and give exponetial output at fixed costalso it can reach much larger audienceWith no limit of demographic.

a)Apple launching its own online store to cater indian market.

b) Incressed competation from other Apple Premium resellers selling online and multi brand online retailer.

c) Apple losses its market cap in india

Strategy and Implementation Summary

As a go to market strategy for online channel , Maple would have a composit approch of selling its products by through its online store and various other online channel as etailing portals, market placesand affliates channel.

Map for Online sales Channels for maple

Channel type Type of engagement Example of channel

Maple Online Store Owner Mapleonline.com

Online retailer Vendor Flipkart.com,rediff.com ,jabong.cominfibeam.com

Market place Owner exclusive store Ebay.com, junglee.com,indiatimesshopping.com

Other channles Vendor Snapdeal.com, dealsforu.com, affliates etc

Maple (APR)

Online Store

Vendor of Online Retailer like Flipkart.com

Exclusive Store on

Online MarketPlace

Eg: Ebay.com

Other ChannelsLike

Affliates AuctionSite

Deals etc

Financial Planning

Budget planning :

Particulars Resources /Sku/Item

Cost per unit/Year/Sku/month

Total cost

One time Fixed Cost

SEO content writing Product content writing 150 words each with 2 photos

1000 150 1,50,000

Payment gateway 1 45000 45000

Total one time fixed cost 1,95,000

Operartional expenses per month

SAS ecommerce platform (Martjack) 1 16000 16000

Ecommerce executive (Product update /Order Booking etc )

2 15000 30000

Ecommerce manager 1 60000 60000

Over heads and mescelenious expenses 1 30000 30000

Total Opex per month 1,36,000 Rs

Marketing Budget per month

Marketing Budget 1 30000 3,00,000

Cost of inventory 1 5,00,000 5,00,000

Break Even Analysis

Break even analysis is based on average ticket size per sales @ 18000 Rs with gross margin of 10 %.

Particulars Units

Total Fixed cost of operations (OPEX) 1,36,000 Rs (Per month )

Avg ticket value per order 18000 Rs

Gross Margin 10 %

Variable Cost 1 (Payment gateway Trasaction Charges @ 3 % Assumption avg ticket value of order is 18000 Rs)

540 rs (per Order)

Variable Cost 2 (Cost per aqusatation CPA or marketing cost as per sale)

600 Rs

Variable cost 3

(Cost of product calculated based on 10% margin)

16200 Rs

Total variable Cost (Variable Cost 1 + Variable Cost 2 + Variable Cost 3)

17,340 RS

Break even point= Fixed cost ------------------------------------------------------- = 136000/(18000-17340) (Ticket Value per Order – Total Variable cost )

207 Orders (per month )

Break Even Point per day = 207/30 = 7 Orders( per day)

Break even sales revenue required per month (Avg ticket value per order 18000 Rs)

37,26,000 RS( per month)

Break even Sales revenue required per day (Avg ticket value per order 18000 Rs)

1,26,000 Rs (per day)

Break even analysis Chart monthly

Sales forcasting for 3 years

Sales Forcast for First Year :

First year

Month 1 2 3 4 5 6 7 8 9 10 11 12 Total

AVG Ticket Value 18000 18000 18000 18000 18000 18000 18000 18000 18000 18000 18000 18000

Volume 10 20 25 30 50 75 100 200 300 350 350 400 1910

Sales 180000 360000 450000 540000 900000 1350000 1800000 3600000 5400000 6300000 6300000 7200000 34,380,000.00 INR

Cost of sales 162000 324000 405000 486000 810000 1215000 1620000 3240000 4860000 5670000 5670000 6480000 30,942,000.00 INR

Gross profit 18000 36000 45000 54000 90000 135000 180000 360000 540000 630000 630000 720000 3,438,000.00 INR

Gross margin % 10 10 10 10 10 10 10 10 10 10 10 10

Net margin % 3.7 3.7 3.7 3.7 3.7 3.7 3.7 3.7 3.7 3.7 3.7 3.7

Net Profit 6660 13320 16650 19980 33300 49950 66600 133200 199800 233100 233100 266400 1,272,060.00 INR

Net Cost 173340 346680 433350 520020 866700 1300050 1733400 3466800 5200200 6066900 6066900 6933600 33,107,940.00 INR

ROI % 4 4 4 4 4 4 4 4 4 4 4 4 4

Sales forcast Second year

Sales forcast Third year

Second year

Month 13 14 15 16 17 18 19 20 21 22 23 24 Total

AVG Ticket Value 18000 18000 18000 18000 18000 18000 18000 18000 18000 18000 18000 18000

Volume 350 350 350 400 450 500 500 500 550 600 600 600 5750

Sales 6300000 6300000 6300000 7200000 8100000 9000000 9000000 9000000 9900000 10800000 10800000 10800000 103,500,000.00 INR

Cost of sales 5670000 5670000 5670000 6480000 7290000 8100000 8100000 8100000 8910000 9720000 9720000 9720000 93,150,000.00 INR

Gross profit 630000 630000 630000 720000 810000 900000 900000 900000 990000 1080000 1080000 1080000 10,350,000.00 INR

Gross margin % 10 10 10 10 10 10 10 10 10 10 10 10

Net margin % 3.7 3.7 3.7 3.7 3.7 3.7 3.7 3.7 3.7 3.7 3.7 3.7

Net Profit 233100 233100 233100 266400 299700 333000 333000 333000 366300 399600 399600 399600 3,829,500.00 INR

Net Cost 6066900 6066900 6066900 6933600 7800300 8667000 8667000 8667000 9533700 10400400 10400400 10400400 99,670,500.00 INR

ROI % 4 4 4 4 4 4 4 4 4 4 4 4 4

Third Year

Month 25 26 27 28 29 30 31 32 33 34 35 36 Total

AVG Ticket Value 18000 18000 18000 18000 18000 18000 18000 18000 18000 18000 18000 18000

Volume 600 700 700 750 800 900 1000 1000 1200 1500 2000 2500 13650

Sales 10800000 12600000 12600000 13500000 14400000 16200000 18000000 18000000 21600000 27000000 36000000 45000000 245,700,000.00 INR

Cost of sales 9720000 11340000 11340000 12150000 12960000 14580000 16200000 16200000 19440000 24300000 32400000 40500000 221,130,000.00 INR

Gross profit 1080000 1260000 1260000 1350000 1440000 1620000 1800000 1800000 2160000 2700000 3600000 4500000 24,570,000.00 INR

Gross margin % 10 10 10 10 10 10 10 10 10 10 10 10

Net margin % 3.7 3.7 3.7 3.7 3.7 3.7 3.7 3.7 3.7 3.7 3.7 3.7

Net Profit 399600 466200 466200 499500 532800 599400 666000 666000 799200 999000 1332000 1665000 9,090,900.00 INR

Net Cost 10400400 12133800 12133800 13000500 13867200 15600600 17334000 17334000 20800800 26001000 34668000 43335000 236,609,100.00 INR

ROI % 4 4 4 4 4 4 4 4 4 4 4 4 4

projection :revenue,P/L for 3 years

First year Second Year Third year

Volume 1910 5750

Avg Ticket value 18000 18000 18000

Sales revenue34,380,000 103,500,000 245,700,000

Cost of sales 30,942,000 93,105,000 221,130,000

Gross profit @ 10 % Margin

34,38,000 10,350,000 24,570,000

Net margin % (After deducting opex+ +marketing cost +inventory cost etc)

3.7 3.7 3.7

Total Cost (including Opex +Marketing+ Inventory)

33,107,940 99,670,500 236,609,100

Net Profit 1,272,060 3,829,500 9,090,900

ROI % 3.8 3.8 3.8

Funding requirnment to Start Operations for one year

Particulars Unit/Months/Sku Total

Product catlog content development

1000 X 150 Rs per Sku 1,50,000

Payment gateway 45000 X1 45000

Opex for 1 Year (Inclucing SAS EcommercePlatform)

1,36,000 X 12 16,32,000

Cost of inventory 5,00,000 5,00,000

Marketing Budget 3,00,000 X 3months 9,00,000

Surplus cash 2,73,000 Rs 2,73,000

Total 35,00,000 RS

Best regards,

Prashant Chauhan . Email : prowebb@gmail.com Phone: 92235442662