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Sample Ecommerce Business plan
1. Business Plan for Maple exclusive Online Store
Selling range of Apple and its affnity products.
By Prashant Chauhan .
Email :prowebb@gmail.com
Phone: 92235442662
2. 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
3. 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 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-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.
4. 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 : DNAArticle on Apple for 2012
link :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 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)
5. 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
6. 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
7. 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
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.com
and various small ecomomerce portals
reliance istore
Apple premium resllers (APR)
8. 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 cost
also it can reach much larger audience
With 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
9. 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
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
Maple
(APR)
Online Store
Vendor of Online
Retailer like
Flipkart.com
Exclusive
Store on
Online Market
Place
Eg: Ebay.com
Other Channels
Like
Affliates
AuctionSite
Deals etc
10. 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
11. 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)
15. projection :revenue,P/L for 3 years
First year Second Year Third year
Volume 1910 5750
Avg Ticket value 18000 18000 18000
Sales revenue
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 %
(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
16. 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 35,00,000 RS
Best regards,
Prashant Chauhan .
Email : prowebb@gmail.com
Phone: 92235442662