Departmental Store
1. Executive Summary
2. Market Analysis
[Link]
[Link] Customer
[Link] strategy/ sale strategy
[Link] Merchandise
3. Competitive Analysis
4. SWOT Analysis
5. Project Detail
[Link] Capacity/Cost
[Link] and others equipment’s requirements
[Link] Requirements
[Link] & Building Requirements
[Link] Cost
[Link] Recourse Requirements
6. Project Economy
7. Financial Assumption
[Link] Calculation
7.2. Projected income statement
[Link] balance sheet
1. Executive Summary
Departmental Stores are emerging as one of the good business ventures in Pakistan as it
provides all the basic merchandise under one roof. The structure of Pakistan’s economy has
changed from agricultural to service base.
The proposed departmental store requires an area of approx. 3,540 sq. ft. it is recommended that
Mini Market should be started at rented premises. The proposed locations in Rahimyar khan
district of Punjab. Abbasia Town is the preferred location for this market. Iqbal Complex would be
a great choice if to select a rented premise.
The total cost for establishing this Mini Market in the proposed areas is estimated
Rs.14, 073,000 with rented premises.
Our Store concept, as shown in our plan, has an excellent profitability level and growth rate. Our
competitive edge, along with new retail techniques and technology, puts our store in the
forefront of the retailing of perishable and nonperishable consumer goods. We are living in an age
where unique grocery store environments are in great demand. Our store will differ from the
traditional grocery store because of our added personal touch.
Product line
We will provide variety of goods ranges from grocery to garments and alike to customers under
one roof. The proposed project is a single floor Retail Market on an area of approximately 3,540
sq. ft. The project will offer following broad categories of goods to its customers:
Groceries and food items
baby products & Kids Toys
Crockery and plastic items
Soaps detergents and chemicals
Cosmetics and artificial Jewelry
Ice‐cream and beverages
Stationery, greeting cards and gifts
Watches and clocks
Electronics/electrical products
General items
Bakery Items
[Link] Analysis:-
1.1..Location:-
Location of the market is of primary concern with any retail organization. Spending time and
money wisely in the process of site selection is of primary importance.
This store should be centrally and conveniently location within a Rahim Yar Khan.
Abbasia Town is the preferred location for this market. Iqbal Complex would be a great
choice if to select a rented premise. Total space required for this market is 3, 540 sq .ft. or
13 Marla.
1.2...Target Customers:-
The target customer for this market is the population/family units of the city. Students,
professionals, young buyer group and business class are the main targeted customers.
1.3...Marketing strategy/ sale strategy:-
a) Product Strategy:-
This lever is about what is being delivered to the marketplace and consumed by the customer.
The opportunity for differentiation relates to perceptions about quality, value, features, and
functions. Commodity companies spend little time with product strategy, relying more on service
and pricing to compete, while other businesses fine-tune their product strategy by varying their
combination of quality, value, features, and functions to meet the perceived needs of a specific
market niche
b) Service Strategy:-
• The staff hired should be well mannered and well trained in dealing with the
customers.
• Introduce home delivery services free of cost for shopping of more than
• Rs.4, 000/‐
c).Pricing Strategies:-
Every retailer has a basic philosophy towards pricing their product. What is important is
that they create and stick to a strategy for pricing so as to convey a clear message to the
consumer. A low price strategy is a great toll to attract a large numbers of customers. Though,
profit margin at the start would be low, but high sales can increase the overall profit.
Some valuable pricing strategies are as follows;
• Provides the consumer with an incentive to become a repeat customer by offering a
future discount.
• Frequent clearance sales
• Include a gift with purchase, buy one get one free.
• Feature your discounted prices predominantly.
1.4...Resources Merchandise:-
Pakistan is one of those countries where abundance of grocery merchandise is available in
wholesale markets of every city. Suppliers normally hesitate to supply goods on credit to new
stores but after confidence building process a reasonable credit period of 15 to 30 days is
available to purchasers. The major wholesaler Lahore are:
Shahalam Market/Rang Mahal , Lahore
Akbari Mandi, Lahore
Hall Road , Lahore
Urdu Bazar, Lahore
Moochi Gate, Lahore.
2. Competitive Analysis:-
There are three overarching factors you can use to differentiate your business in the face of
competition:
Cost leadership. You have the capacity to maximize profits by offering lower prices than the
majority of your competitors.
Differentiation. Your product or service offers something distinct from the current cost leaders in
your industry and banks on standing out based on your uniqueness.
Segmentation. You focus on a very specific, or niche, target market and focus on building traction
with a smaller audience before moving on to a broader market.
4. SWOT Analysis:-
A SWOT Analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses,
Opportunities, and Threats involved in a project or business venture. Strengths and weaknesses
are internal to the company. Opportunities and threats originate from outside the company. A
SWOT analysis is usually performed early in the project development process, and helps
organizations evaluate the environmental factors and internal situation facing a project.
Strengths and opportunities
• Easy availability of resources(manpower/salesmen)
• Growing population
• Status symbol to shop from big stores
• Popularity of variety shopping under single roof
• Well established middle class with a growing trend of branded
shopping.
Weaknesses and threats
• Heavy taxes in the form of sales tax and income tax on retail business
• Credibility factor in the initial phase, as suppliers do not give credit to newly entrants
• Opening of large scale chain stores like Metro, Cash & Carry.
5. Project Detail
5.1. Project Capacity/Cost
The proposed Mini Market will have an area of 3,540 sq. ft. having covered/indoor shopping
facilities. The store will operate for 12 to 16 hours from morning to midnight. Operating time
depend on localities requirements.
