STARTUP -BHOPAL CASE STUDY Marketing : Research and Analysis Financial operations Critical risk and what will be the profit.

1. WARDROBE:
YOUR OLX/MAGIC
BRICKS AMALGAM
FOR FASHION
Submitted to:
Mrs. Sumita soni ma’am
Submitted by:
Praveen Mukati 141109029

2. ABOUT WARDROBE
• Wardrobe is an online dress sharing and renting platform; providing free pickup,
delivery and dry cleaning services from local boutiques and international fashion
houses at cheap affordable prices and user satisfaction
CHECK DESCRIPTION

3. BUSINESS DESCRIPTION
• Most of the designer bridal or party wear dresses that we buy are pretty
costly to buy and are still costly even for renting. The problem arises
especially during the wedding or party season, as we have to get the best
dress, but buying it is very costly and most of the bridal and party wear
dresses are used usually just one or two times. So people either have to
shed a huge amount of their hard earned money just on these dresses or
approach rent houses which give these dresses on higher prices.
• The unique thing about our product is that we make dresses available at
very cheap prices, and also offer free pickup and delivery services to form
a link between the boutiques and customers.

4. Marketing :
Research and Analysis :
After market research, we've come to the following conclusions:
1. We want to start this venture in a Tier 3 city like Bhopal, because this avenue is
unexplored and we see a potential for our business here.
2. The target crowd is men and women from the age of 18 to 40 years, and the market
size is around 6-8 lakh people.
3. Since, this avenue is unexplored in Bhopal, we dont have any competition. This idea
is under development in a lot of other cities of India, but Bhopal is still unexplored.
4. Market share - since there is no competitor for us in city like Bhopal so there is
currently no market of online dress sharing , we'll be the first one launching this in
market so we'll be the creator of this type of market in bhopal hence owning complete
market of online dress sharing in starting , according to time there will be surely
competition and then our share will be varying.

5. CONTINUE..
Marketing plan
Marketing and Sales
Pricing :
Most of the prices will be in range of 1/10 to 1/5 the real price of the
dress depending on the brand and type of wear. 1000 is the fixed
minimum price on all dresses.
Advertising and promotions :
We'll be advertising through pad advertisements on youtube, and other
social media like facebook and instagram. We’ll also be having our own
youtube channel which will post videos on reviews and user
satisfaction.

6. Financial operations :
1. Money is required for setup :- office , furniture , staff , website , branding and
advertising, transportation cost , packaging cost, site management, salary ,office costs,
licence cost, electricity cost.
2. We have some estimated rates for these requirements(per year)
Office rent = 50k*12 = 600k
Transportation = 100k
Site management = 100k
Packaging = 30k
Salary = 2200k
Advertisement = 150k
Other = 320k
Total = 3500k rupees (this is minimum )
3. Arrangement of money ( we need at least 2700k rupees , so we'll raise total 5000k
rupees for perfect settlement of at least 2 years)
3.1. 5*500k = 2500k ( from us i.e. from 5 partners )

7. CONTINUE..
3.2. 1000k from bank if possible( preferring govt. bank like sbi )
3.3. Remaining will raise from as many as investors (maximum 25% share we are going
to give to investors )
3.4. Estimated earning (per year)
On a single order (average ) = 1k rupees from order = 500 rupees (our share )+ 500
rupees (boutiques holder's share )
On an average 4k orders in one year , 4000k/2 = 2000k
Our targets = 4k orders , 1st year i.e. 4000k/2 = 2000k
10k orders, 2nd year i.e.10000k/2= 5000k
20k orders, 3rd year i.e. 20000k/2=10000k
After that on an average
25k orders , single year i.e. 25000k/2=12500 k

8. Profit = Since it is completely new for Bhopal so it is possible that we
are not going to have any profit up to initial 6 months , but once
customers are habitual with our services and we are known in city we'll
start some earning , controlling our initial loss by 1 and 1/2 year i.e. our
breakeven
point and after reaching breakeven point we'll be increasing services and
earning profit , reaching
payback time period within 4 years .

9. Profit per order
An order consist of delivery charge(a part of our profit because we are delivering
free of cost ) +
labour charge +other costs + profit
So per these parts 50+100+ 50 +300 = 500(atleast)
i.e. 300 rupees profit from single order
So once we get to 25k orders per year , we'll be having 25k*300=7500k i.e.
75,00,000 lac rupees
per year.
Further enhancement:- once we are settle in one city, we’ll expand to more Tier 2
and Tier 1 cities.

10. Operations :
We have decided to set up the office in MP Nagar, Bhopal.
Advantages :
1. All areas of city are easily accessible from here.
2. It is a location with good connectivity and transport links.
3. Most of the major local boutiques and fashion houses have showrooms and
stores nearby.
4. The tax and land rates are cheap and affordable.
5. Expenses of labour is cheaper in Bhopal as compared to bigger cities.
6. Office expenses are favourable in a city like Bhopal, to grow a business.
Taxes :
1) service tax i.e. 15%

11. Team :
Management Staff :
The management staff would include the following personnel.
CEO - Day to day executive responsibilities.
COO - Day to day managerial responsibilities.
Delivery team - Comprising of 2 teams of 2 people each.
Web developer and technical support - 2 people
Sales and Marketing staff - 2 people
Support staff - 4 people.
Board of Directors : CEO, COO, Investors with shares more than 10%

12. Critical Risks :
1. Acceptance of the idea
2. Target crowd may vary depending on use of technology
3. Tie ups with international fashion brands
4. Bhopal being a Tier 3 city
5. Lack of investors
Alternative courses of action:
•Look for investors in other metro cities.
•Relaunch the product in any other city with more favourable factors.
•Offline options for booking and delivery.

13. Harvest Strategy :
After reaching the break even point in a Bhopal, we will reach out to
investors in cities like Bangalore or Mumbai, and expand our offices and
venture in one of those cities depending on other factors, and we’ll keep on
expanding it to other major cities of India.