Contents
Acknowledgement
Executive Summary
Chapter I…………………………………………………………………………………………………………………………….……..4
Introduction……………………………………………………………………………………………………………………………....4
1.1Background………………………………………………………………………………………………………………………..4
1.2 Overview of Sabko Resale Store……………………………………………………………………………………………5
1.3 Vision Statement………………………………………………………………………………………………………………..5
1.4 Mission Statement………………………………………………………………………………………………………..……5
1.5 Values and Principle……………………………………………………………………………………………………….…..6
1.6 Why Sabko Resale Store?……………………………………………………………………………………………….……6
Chapter II…………………………………………………………………………………………………………………………..………7
Assessment of Business Environment…………………………………………………………………………………………….7
2.1 Swot Analysis………………………………………………………………………………………………………….…..…….7
2.1.1 Strengths:……………………………………………………………………………………………………………………7
2.1.2 Weaknesses:……………………………………………………………………………………………………………....7
2.1.3 Opportunities:……………………………………………………………………………………………………………..7
2.1.4Threats:…………………………………………………………………………………………………………………….…8
2.2 Environmental analysis…………………………………………………………………………………………....…………8
2.2.1 Political environment:…………………………………………………………………………………………………..8
2.2.2 Economical environment:………………………………………………………………………………..…………...8
2.2.3 Social environment:……………………………………………………………………………………………..………8
2.2.4 Technological environment:…………………………………………………………………………………..………8
2.2.5 Legal Environment:………………………………………………………………………………………..…………....9
Chapter III………………………………………………………………………………………………………………………..……...10
Market Analysis……………………………………………………………………………………………………………………..…10
3.1 Market Segmentation……………………………………………………………………………………………………….10
3.1.1 Demographic segmentation:…………………………………………………………………………………….….10
3.1.2 Behavioral segmentation:…………………………………………………………………………………..……….10
3.2Target Market………………………………………………………………………………………………….……..………..11
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3.3 Market Positioning…………………………………………………………………………………………………………...11
3.4 Market Size……………………………………………………………………………………………………….………..…..11
3.5 Marketing Mix………………………………………………………………………………………………………………….11
3.5.1 Product…………………………………………………………………………………………………….………..…….12
3.5.2 Pricing……………………………………………………………………………………………………………..……….13
3.5.3 Promotion…………………………………………………………………………………………………………………14
Chapter IV………………………………………………………………………………………………………………………………..14
Competitive Analysis…………………………………………………………………………………………….…………..………14
4.1 Competitors:………………………………………………………………………………………………………....………..15
4.1.1 Local Retailers:……………………………………………………………………………………………………..……15
4.1.2 Existing Mobile Exchange Programs:…………………………………………………………………………..…15
4.1.3 Existing Second Hand Books Store:………………………………………………………………….……………15
Chapter V………………………………………………………………………………………………………………………………...17
Strategy……………………………………………………………………………………………………………………………..……17
5.1 Company Strategy………………………………………………………………………………………………………..…..17
Chapter VI………………………………………………………………………………………………………………………………..18
Operation Plan………………………………………………………………………………………………………………………….18
6.1 Layout Design……………………………………………………………………………………………..……..……………18
6.2 Human Resource Planning:………………………………………………………………………………………..…..….19
6.3 Organization Structure:……………………………………………………………………………………………………..20
6.3.1 Job division:…………………………………………………………………………………………………………..….20
6.4 Store Location:…………………………………………………………………………………………………………..…….21
6.5 Inventory Plan:…………………………………………………………………………………………………………………22
6.6 Process Plan……………………………………………………………………………………………………………..……..23
6.6.1 Purchasing Goods…………………………………………………………………………………………..………….23
6.6.2 Selling Goods………………………………………………………………………………………………..…………..24
6.7 Systems & Controls:………………………………………………………………………………………………..………..25
6.8 Hours of Operation…………………………………………………………………………………………….…………….25
6.9 Capacity………………………………………………………………………………………………………………………….25
6.10 Future Capacity…………………………………………………………………………………………………………..….25
6.11 Quality Management:……………………………………………………………………………………………………..26
Chapter VII……………………………………………………………………………………………………………………………....27
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Financial Plan…………………………………………………………………………………………………………………………...27
7.1 Capital requirement:……………………………………………………………………………………………………..….27
7.2 Capital Structure…………………………………………………………………………………………………………..….28
7.3 Operating Expenses…………………………………………………………………………………………..………..……28
7.4 Projected Income Statement……………………………………………………………………………...…………..…29
7.5 Projected Cash Flow Statement……………………………………………………………………………………..…..30
7.6 Balance Sheet………………………………………………………………………………………………….…………..….31
Assumptions:……………………………………………………………………………………………………….……..…….31
Chapter VIII………………………………………………………………………………………………………………………………33
Future Plan and Exit Strategy……………………………………………………………………………………………………...33
8.1 Future Plan………………………………………………………………………………………………….……………..…..33
8.2 Exit Strategy……………………………………………………………………………………………………………….……33
Annexure…………………………………………………………………………………………………………………...…………...34
Working Capital…………………………………………………………………………………………………....……………...34
Operating Expenses……………………………………………………………………………………………………………....35
Sales Forecast……………………………………………………………………………………………………….………..…….36
Cost of products…………………………………………………………………………………………………………..……….36
Overhead Expenses…………………………………………………………………………………………………………..…..37
Depreciation-O@ce Equipment……………………………………………………………………………..………..………38
Depreciation- O@ce furniture………………………………………………………………………………………………….38
Pre Operating Expense………………………………………………………………………………………..……………..….39
Advertising Budget……………………………………………………………………………………………………..…………39
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Chapter I
Introduction
1.1Background
The United Nations classifies Nepal as one of the least developed countries in the world. Economically
writing, there are 3 classes of people, Upper class people, Middle class people and lower class people.
Only a small fraction of Nepali population lies in the upper class bracket. More than 40% still lives under
the poverty line. The lowest 20% of population gets 11.5 % of national income whereas the highest 20%
gets 44.8%.
Upper class like in any other part of the world enjoys sound standard of living. They have wants to catch
up with the latest in world trends. Due to the world becoming one big global market thanks to lowered
trade barriers and technological revolutions, these people would like to update themselves with new
electronic gadgets. They buy new ones that have hit the market, but what do they do to their existing one?
The same applies for furniture and other household accessories.
Another class is the middle class. A huge chunk of our population belongs to the stratum. This group has
access to awareness of new technologies that have hit the market and has the needs for it too, but because
of high prices not many can enjoy them. These people do not add electronic devices unnecessarily but
they desire to have their rooms equipped with electronics. All they need to get their needs fulfilled is
affordability. What they need is a resale shop where products can be purchased at a much cheaper rate.
This boundary of economic weakness for the luxury and standardization can be broken with the
establishment of a resale shop, where easily and cheaply the goods can be purchased. Here, those who
need to sell their goods for whatever reason will find a platform to dwell their necessities. A resale store
as such works to match buyers with sellers. The concept of thrift-store which resells used products
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including clothes has found a wide array of population embracing the theme in the United States. When
done right, it can enjoy a surge in popularity in a developing nation like ours too.
1.2 Overview of Sabko Resale Store
SABKO RESALE STORE is established with the sole purpose of gaining attention of middle
class customers who are willing to be acquainted with new technologies and become sophisticated but
with economic limitations. It will sell products that are besides purchased from retail distributors in bulk
at a reasonable price also purchased from customers who need to sell. Many want to sell their products
because they want to upgrade their existing gadget with the latest one. Some will sell because of some
unavoidable circumstances like immediate crunch of money. The resale store will find a platform to fulfill
the needs of both the parties. The purchased products will then be brought into good conditions with the
help of our employees who are experts in maintaining the performance of equipments.
Whether it is boom or burst, resale always remains in profit. When times are “good” shoppers shop, when
times are “bad” savers save. And since our business is a little bit of both shopping and saving, we will be
in the market for resale merchandise and services. Our resale is mostly for used products that find its way
into the market place rather than accumulate in household’s cupboards and closets. We ensure quality of
products bought and then sell them at a very affordable rate. By staying true to our motto of selling
reliable goods at an affordable rate, we can also get out target audience to be embracing the concept and
retain its loyalty for it.
1.3 Vision Statement
To offer quality services to improve the quality of life for those in need.
1.4 Mission Statement
Together we assist, advocate for, and empower our customers by affordably fulfilling their products’
needs and also immediately accepting their functional but used merchandizes to release them from
financial stress in times of crisis.
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1.5 Values and Principle
The major values and principles on which our business stands are as follows:
Dedication
Integrity
Passion
Speed
1.6 Why Sabko Resale Store?
To own products that you always loved but could not afford to
To get a price for discarding products you would not want to keep
To see what the market is buying: To know what is hot and what is not
To have easy access to second hand products. Electronics, household appliances and
books all under one roof.
To have a satisfying shopping experience
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Chapter II
Assessment of Business Environment
2.1 Swot Analysis
Swot Analysis consists of figuring out strengths and weaknesses that lie within an organization and
opportunities and threats that lie in the external environment.
2.1.1 Strengths:
Our pricing strategy seems to be one the strengths since we are providing quality of services
at a very reasonable price in comparison to other competitors.
We will be hiring professionals who have sound knowledge in the technological fields.
Human resource will thus be our strength.
Location (New Baneshwor) is our major competitive advantage. This place boasts of a huge
population with varying levels of income. It will make our service more easily accessible to
the targeted clients
