Business Plan for Maple exclusive Online Store

Selling range of Apple and its affnity products.

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

Index
1. Summary
2. Market Analysis Summary
2.1) Market reaserch and analysis for apple products in india offline market
2.2) Market reaserch for online market for apple products in india with emerging Trends
2.3) Analysis of Various Online Ecommerce Channels
2.4) Competation analysis
2.5 ) 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 Expenses
4.3) 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 :

Indias e-commerce market is worth about Rs 50,000 crores in 2011. About 80% of this is
travel 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--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 2012

link :http://www.dnaindia.com/analysis/column_will-india-scuttle-potential-rs700-cr-investment-ofapple-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 in
2012 is expected to be greater than 3 % of its offline market of 6000 Cr and estimated @ 180 Cr Rs
which 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 RS

Number of apple product sold per year online

1,00,000 Orders

Number of apple products sold per Month

8334 Orders per month

Apple product sold per month revenue

15 Cr rs

Number of apple products sold online per day

288 Orders per day

0.5 Cr Rs per day

Apple products sold per day revenue

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

reliance istore
Apple premium resllers (APR)

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

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

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

Threat

Weakness
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 cost
also it can reach much larger audience
With no limit of demographic.

Oppurtunity

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 places
and affliates channel.
Map for Online sales Channels for maple

Online Store

Vendor of Online
Retailer like
Flipkart.com

Maple
(APR)

Exclusive
Store on
Online Market
Place
Eg: Ebay.com

Other Channels
Like
Affliates
AuctionSite
Deals etc

Channel type

Type of engagement

Example of channel

Maple Online Store

Owner

Mapleonline.com

Online retailer

Vendor

Flipkart.com,rediff.com ,jabong.com
infibeam.com

Market place

Owner exclusive store

Ebay.com,
junglee.com,indiatimesshopping.com

Other channles

Vendor

Snapdeal.com, dealsforu.com, affliates

etc

Financial Planning
Budget planning :
Particulars

Cost per
unit/Year/Sku/
month

Total cost

SEO content writing

1000
Product content writing 150 words each
with 2 photos

150

1,50,000

Payment gateway

45000

45000

Resources
/Sku/Item

One time Fixed Cost

Total one time fixed cost

1,95,000

Operartional expenses per month

SAS ecommerce platform (Martjack)

16000

16000

Ecommerce executive
(Product update /Order Booking etc )

15000

30000

Ecommerce manager

60000

60000

Over heads and mescelenious expenses

30000

30000

Total Opex per month

1,36,000 Rs

Marketing Budget per month

Marketing Budget

30000

3,00,000

Cost of inventory

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

16200 Rs

(Cost of product calculated based on 10% margin)

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
AVG Ticket Value
Volume

10

11

12Total

18000

18000

18000

18000

18000

18000

18000

18000

18000

18000

18000

18000

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

6066900 6066900

6933600

33,107,940.00 INR

ROI %

1300050 1733400
4

3466800 5200200
4

Sales forcast Second year

Second year

Month

AVG Ticket Value

Volume

13

14

15

16

17

18

19

20

21

22

23

24 Total

18000

18000

18000

18000

18000

18000

18000

18000

18000

18000

18000

18000

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 %

Sales forcast Third year

Third Year

Month

25

26

27

28

29

30

31

32

33

34

35

18000

18000

18000

18000

18000

18000

18000

18000

18000

18000

18000

18000

600

700

700

750

800

900

1000

1000

1200

1500

2000

2500

13650

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

2700000 3600000

4500000

24,570,000.00 INR

AVG Ticket Value

Volume
Sales

1260000 1260000

1350000

1440000

1620000

1800000

1800000

2160000

36 Total

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

399600

466200

466200

499500

532800

599400

666000

666000

799200

999000 1332000

1665000

9,090,900.00 INR

10400400 12133800 12133800

13000500

17334000 20800800

26001000 34668000

43335000

236,609,100.00 INR

Net Profit
Net Cost
ROI %

13867200 15600600 17334000

4

projection :revenue,P/L for 3 years

First year

Second Year

Third year

Volume

1910

5750

Avg Ticket value

18000

18000

18000

34,380,000

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 %
3.7
(After deducting opex+
+marketing cost
+inventory cost etc)

3.7

3.7

Total Cost
33,107,940
(including Opex
+Marketing+ Inventory)

99,670,500

236,609,100

Net Profit

1,272,060

3,829,500

9,090,900

ROI %

3.8

3.8

3.8

Sales revenue

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 Ecommerce
Platform)

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

Best regards,
Prashant Chauhan .
Email : prowebb@gmail.com
Phone: 92235442662

35,00,000 RS