XYZ CO.
Private & Confidential
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Table of Contents
• Introduction
• Executive Summary
• Company Summary
• Product
• Market Analysis Summary
• Strategy and Implementation Summary
• Financial Plan
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Introduction
• Flower and gift delivery business
• Multi billion dollar industry
• Most Frequently Purchased product on internet
• Consumer base across all sections of society
• Product serves various occasions
• Industry growth around 15-20% on yearly basis
• No established brand name in market
• Target audience – Upper middle
class
technology savvy urban population.
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& Confidential
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Executive Summary
• Proposal to establish and a chain of flower shops in prominent area of
India and cover most of the tier 1, 2and 3 cities by tying up with local
vendors wherever we don’t have our own setup to increase the footprints
of company.
• First flower to be opened at Sohna road – Gurgaon
• Proposed locality will have more than 1lac potential buyers in next 2 years
• Trend of internet flower purchase increasing
• Build a brand name for:
– Online overseas users for flower delivery in India
– Flower arrangement management for corporate events
– The most artistic flower bouquet suppliers
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Company Summary
• Start Up Cost
– Approx. Rs. 1500000
• Expected return
– Break even in first 12 months of operations
• Company Location
First showroom to be set up on Sohna Road Gurgaon
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Market Analysis Summary
• Market Segmentation
– Above lower Middle class society using flowers as gifts on several
occasions all around year
– Corporate organizing events
– Banquet halls organizing events like marriages , B'day
– Showrooms / hotel receptions using flowers for decoration
– Wedding planner companies
• Average middle class family spending Rs. 1000 yearly on flowers as gifts
• Average corporate spending Rs. 100000 yearly on flower decoration for
corporate events
• Average showroom / hotel spending Rs. 50000 on flowers for decoration
of the reception.
• Average spending on flower decoration per marriage Rs. 150000
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Industry Analysis Summary
• Industry Analysis
• Branded florists – between 5-10 in India
• Florists with presence across India – 1 ( fern n Petals with over 100 stores)
• Local florists within Delhi NCR – Over 5000
• Average number of roadside florists per sector – Approx. 2
• Most of the florists deals in fresh flowers
• Some of the branded players have range of products from Fresh flowers,
dry flowers, and other gift items
• Branded players have internet based order booking system and tie ups
with local florists for the delivery
flowers across India.
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Strategy & Implementation Summary
•
Marketing Strategy
i. Target Customer - Above Lower Income Group People
ii. Online marketing
iii. Special day’s reminder calling Reminder Calling - A new marketing tool
•
Promotional Strategy
i. advertisements on cable TV
ii. Sponsoring events like college festivals
iii. In – Store Promotions
•
Sales Strategy
Products will be distributed from our Showroom in Guragon, Sohna, or
by pre –order from internet bookings & telephone bookings Sales is one area
that needs to be developed in order to better serve the consumer and meet
objectives.
Cont…..
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Strategy & Implementation Summary
• Sales Strategy
• Counter sales - showroom walk in
• Internet sales
• Yearly package sales
• 5 deliveries with 20% discount on showroom sales
• Tele sales
• Corporate tie ups for events like seminars, board meeting decoration
• Tie up with banquet halls for events decorations like B’day, marriage
etc.
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Financials
Revenue estimates
Estimated counter sales per year
1500
Total number of yearly packages to be sold
1000
Total number of orders procured by telesales ( 5 bouquet per package )
1000
Average cost of retail bouquet
400
Average cost of a package
1800
Total revenue from retail sales
1000000
Total revenue from package sales
1800000
Estimated number of orders from corporate events ( meeting, seminars etc)
25
Average cost of an order from corporate
10000
Total revenue from corporate events
250000
Total Revenue
3050000
Cost estimates
Total cost of flowers for 7500 bouquets ( at the rate of average Rs. 150 / bouquet)
1125000
Shop rent
300000
Shop expenses ( at the rate of Rs. 10K / month)
120000
Salary expense (Artist -8k , tele sales-5k, sales mgr-12k and delivery boy -5k)
360000
Misc.
100000
Total estimated cost
2000000
Net earning
1050000
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