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0Executive Summary Trust will be in the business of selling of FMCG goods and consumer durable goods to people at every fitness level, from childrens to weekend customers.With our knowledgeable staff we will provide an environment where everyone feels comfortable coming and getting a valuable needs to be satisfied by them. This store will also have a local market and will serve both rural and urban peoples. Based in Thanjavur, TRUST wants to be a recognized retail store. An exact location has yet to be set, but we are avidly searching for a high foot traffic location. Ideally that location would be in near Old Bus Stand, Marys corner where anyone can travel a short distance to find our store.
Objectives

1. To provide a wide range of merchandise at reasonable prices. 2. To achieve a healthy profit margin within the first year. 3. To achieve a modest net profit by year two. 4. To be an active and vocal member of the community, and provide continual re-investment through participation in community activities and financial contributions. Keys to Success To succeed in this business we must:

Sell a broad range of products. Provide for the satisfaction of 100% of our customers. Be an active member of the community. Encourage customer input.

2.0 Company Summary 2.1 Company Ownership TRUST Store is a privately held corporation. It will be registered as a Subchapter S, with ownership Balakarthikeyan.P(100%). 2.2 Start-up Summary The building will be leased with a down payment of Rs.250000 on a four year lease. Start-up costs will be financed through a combination of owner investment and shortterm borrowing. Other miscellaneous expenses include:

Marketing/advertising consultancy fees for assistance in designing our grand-opening ads and brochures.

Legal fees for corporate organization filings.

Retail merchandising/designing fees for store layout and minor renovations.

Table: Start-up Requirements Start-up expenses Legal Stationery,etc Broachers Marketing consultants Insurance Rent Building renovations Equipments other Total expenses Start-up Assets Cash required Start-up inventory Other current Assets Long-term Assets Total Assets Total Requirements Products The TRUST store sells a variety of quality discount merchandise. The types of merchandise we will carry will include items such as dishware, household goods, toys, cosmetics, candy, greeting cards, and a list of items too exhaustive to list here. A dedicated staff is committed to providing excellent customer service. The merchandise is purchased from a variety of well-known manufacturers such as Procter & Gamble, HUL, , American Greetings as well as a number of other generic branded companies. Shipments arrive on a daily basis. We will continue to find new product lines that can be added to our inventory. We are able to sell products at very low prices, because we will purchase items from discontinued lines, seconds, over runs, etc., that cannot be sold to a manufacturer's usual retail customers.

Market Analysis Summary We expect sales to increase steadily as consumers find that they can purchase a variety of quality items at bargain prices. We intend to tap into the retail market with pricing that will encourage quantity buying, and our pricing will attract consumers on fixed budgets. Our target market is the lower income portion of the Bend and Redmond community. This includes working class individuals, the elderly, and students, many of whom are price conscious and looking to find a value for their dollar.

4.1 Market Segmentation The market analysis pie chart shows potential customers and the company's target markets. The Dollar Store intends to provide affordable shopping alternatives to working class families with incomes under $25,000, for elderly people on fixed incomes, and also a large student population that tend to be on strict budgets. Bend makes up the largest market segment. We expect this market to grow at a rate of 10% per year. This market constitutes the general public who are looking for affordable merchandise at bargain prices. Redmond constitutes the second largest market with a fast growing retirement community. There are also many bedroom communities that shop in the Bend area that will add to the percentage of consumers 4.2 Target Market Segment Strategy We focus on the price conscious consumer who is looking for value as well as quality. Both the Bend and the Redmond groups will be marketed to as they are isolated populations which do most of their shopping in the greater Bend area. If we can attract and keep these consumers the word will continue to spread about what our store has to offer. 4.3 Industry Analysis In an ever changing economy the discount store model is becoming more popular with the consumer. Providing a large selection of bargain-priced items is our intended goal. 4.3.1 Competition and Buying Patterns Consumers demand quality customer service, fair pricing, and a convenient location. Competition is very tough with customer service and location key components. The selection of merchandise a store provides is also very important Strategy and Implementation Summary The Dollar Store uses a strategy of total market service. Our promise is in our location and the products we sell, the people we attract, and the atmosphere we create.

We will present a store that is pleasant to shop in with a large variety of merchandise to choose from. Ultimately, we are selling more than just merchandise. We are selling ourselves. We want to provide the kind of customer service that will provide an atmosphere that creates a positive shopping experience for our customers. Strategic Assumptions: 1. Every person with income limitations or on fixed incomes is a potential customer. 2. Marketing to these segments of the population will lead to an expansion in overall market growth. 5.1 Competitive Edge Our location is a very important competitive edge. We are located in the popular Riverway Mall which has a high appeal to many different kinds of consumers. There is a good mix of high and low end shops with several quality restaurants near by. With easy access from Main St. the Riverway Mall is a popular destination not only for Bend residents, but for people commuting from Redmond and the outlying areas. Another competitive edge we will have over our competition is the large variety of merchandise we will carry. With the sources we are working with it will be possible to carry many name brand items at a discount price. Add a staff committed to providing great customer service and the Dollar Store will be an attractive stop for the consumer. 5.2 Marketing Strategy The Dollar Store will benchmark our objectives for sales promotion and mass selling. We are focusing our marketing effort on the community of consumers that want a store which has an interesting variety of merchandise at bar gin prices. We will implement a strategy that treats these customers as a community. This means our marketing resources will be centered around both sales promotions (events, displays) and personal sales (customer service, friendly atmosphere).

We will stay within our marketing budget. Marketing promotions will be consistent with the Mission Statement.

5.3 Sales Strategy Employees are paid a straight wage but can achieve a semi-yearly bonus based on profits and customer satisfaction rates. All potential sales will be attended to in a timely fashion and long-term salespersoncustomer relationships will take precedence over sales closure.

5.3.1 Sales Forecast The following table and chart give a run-down on forecasted sales. We expect sales to increase at a rate of 10% by April. We would like to see another increase of 10% by August. We expect to experience a steady growth throughout our first year even though we are a new business enterprise. As we become more familiar to the public we expect to gain more market share and would like to see progressive growth as we head into the following year. The Dollar Store, with an aggressive marketing approach expects to increase its share of the market by offering a unique option to discount shopping.

6.0 Financial Plan 1. Growth will be moderate; cash flows steady. 2. Marketing costs will remain below 15% of sales. 3. The company will invest residual profits into financial markets and not company expansion (unless absolutely necessary). 4. Future cash investments will use NOV projections to achieve maximum return with limited risk.

6.1 Start-up Funding Table: Start-up Funding

Break-even Analysis The Average Percent Variable Cost and Estimated Monthly Fixed Cost figures in the break-even table and chart below are drawn from data in the Profit and Loss and Sales Forecast tables. The table and chart give us a rough estimate on how much product and service we need to sell each month to cover all our expenses.

SECTOR PROFILE The Indian retail industry has experienced high growth over the last decade with a noticeable shift towards organised retailing formats. The industry is moving towards a modern concept of retailing. The size of India's retail market was estimated at US$ 435 billion in 2010. Of this, US$ 414 billion (95% of the market) was traditional retail and US$ 21 billion (5% of the market) was organized retail. India's retail market is expected to grow at 7% over the next 10 years, reaching a size of US$ 850 billion by 2020. Traditional retail is expected to grow at 5% and reach a size of US$ 650 billion (76%), while organized retail is expected to grow at 25% and reach a size of US$ 200 billion by 2020.The US-based global management consulting firm, A T Kearney, in its Global Retail Development Index (GRDI) 2011, has ranked India as the fourth most attractive nation for retail investment, among 30 emerging markets. As Indias retail industry is aggressively expanding itself, great demand for real estate is being created. The cumulative retail demand for real estate across India is expected to reach 43 million square feet by 2013. Around 46 per cent of the total estimated demand between 2009 and 2013 will be come from Tier-1 cities. For instance, Pantaloon Retail added 2.26 million square feet (sq. ft.) of retail space during the fiscal 2011 and booked over 9 million sq. ft of retail space to fructify its expansion plans in future. Some of the key players in the Indian retail market, with a dominant share are: 1)Pantaloon Retail Ltd, a Future group venture: Over 12 mn sq. ft. of retail space spread over 1,000 stores, across 71 cities in India. 2) Shoppers Stop Ltd: Over 1.82 mn sq. ft. of retail space spread over 35 stores, in 15 cities. 3) Spencers Retail, RPG Enterprises: Retail footage of over 1.1 mn sq. ft. with approx 250 stores, across 66 cities. 4) Lifestyle Retail, Landmark group venture: Has approximately 15 lifestyle stores and 8 Home centres. Other major domestic players in India are Bharti Retail, Tata Trent, Globus, Aditya Birla More, and Reliance retail. Some of the major foreign players who have entered the segment in India are Carrefour which opened its first cash-and-carry store in India in New Delhi. Germanybased Metro Cash & Carry which opened six wholesale centres in the country. Walmart in a JV with Bharti Retail, owner of Easy Day storeplans to invest about US$ 2.5 billion over the next five years to add about 10 million sq ft of retail space in the country.

British retailer Tesco Plc (TSCO) in 2008, signed an agreement with Trent Ltd. (TRENT), the retail arm of Indias Tata Group, to set up cash-and-carry stores. Marks & Spencers have a JV with Reliance retail. FINANCE AND ASSISTANCE The Indian retail sector accounts for 22 per cent of the country's gross domestic product (GDP) and contributes to 8 per cent of the total employment. India continues to be among the most attractive investment propositions for global retailers. Cumulative foreign direct investment (FDI) inflows in single-brand retail trading, during April 2000 to June 2011, stood at US$ 69.26 million. Till now FDI up to 100 per cent was allowed for cash and carry wholesale trading and export trading under the automatic route, and FDI up to 51 per cent was allowed in single-brand products, with prior government approvals. However, the Government recently passed a cabinet note and permitted FDI upto 51% in multibrand retailing with prior Government approval and 100% in single brand retailing thus further liberalizing the sector. This policy initiative is expected to provide further fillip to the growth of the sector. REGULATORY NORMS Multiple laws and regulations are in force at the central, state and local levels for governing the retail sector. Absence of specific legislations controlling distribution trade and the existence of a plethora of laws such as the Essential commodities Act, the Cold Storage Order, the Weights & Measures Act, labor laws, the Shops Establishments Act and so on, leads to market distortion. Timely and effective implementation of GST will help bring about market integration. Streamlining the barriers for interstate movements and removal of all octroi and sales tax check points is possible if the implementation of GST is done with a national, on-line tax payment system. There should be quick implementation of all the provisions of the APMC Act , in letter and spirit, namely the institutionalization of market intermediaries, contract farming and so on. CHALLENGES Some of the key challenges faced by the sector are: Shortage of skilled manpower Front-end/retail assistant profiles in stores form a major proportion of the employment in the retail sector while store operations account for 75-80% of the total manpower employed in the organized retail sector. Unfortunately, there are very few courses specific to the retail sector and graduates/post graduates from other streams are recruited. Further, retail training opportunities such as niche courses for areas like merchandising, supply chain and so on are limited. The condition is more alarming in the unorganized sector where the manpower is not equipped with even the basic level of retail specific and customer service skills, which adds to their incompetence vis-a-vis the organized sector. A cohesive effort to develop skills within the sector can have a significant potential impact on productivity and competitiveness, both within the sector and on the wider economy. Lack of industry status - Due to the absence of industry status, organized retail in India faces difficulties in procurement of organized financing and fiscal incentives. The Government should grant the much needed industry status to the sector so that the sops that come with it help promote both big & small retailers. Policy induced barriers Organized retail in India is managed by both the Ministries of Commerce & Consumer Affairs. While the Ministry of Commerce takes care of the retail

policy, the Ministry of Consumer Affairs regulates retailing in terms of licenses and legislations. There is a need to govern retail operations through a single apex body. A single agency can take care of retail operations more effectively, especially with regard to addressing the grievances of retailers. The development of the retail sector can take place at a faster pace if a comprehensive legislation is enacted. Real estate - Lack of sophisticated retail planning is another major challenge the sector faces. Available space is easily interchangeable between commercial and retail use. In most cities, it is difficult to find suitable properties in central locations for retail, primarily due to fragmented private holdings, infrequent auctioning of large government owned vacant lands and litigation disputes between owners. THE FUTURE Organized retail is a new phenomenon in India and despite the downturns, the market is growing exponentially, as economic growth brings more of Indias people into the consuming classes and organized retail lures more and more existing shoppers into its open doors. By 2015, more than 300 million shoppers are likely to patronize organized retail chains. The growing middle class is an important factor contributing to the growth of retail in India. By 2030, it is estimated that 91 million households will be middle class, up from 21 million today. Also by 2030, 570 million people are expected to live in cities, nearly twice the population of the United States today. Consumer markets in emerging market economies like India are growing rapidly owing to robust economic growth. India's modern consumption level is set to double within five years to US$ 1.5 trillion from the present level of US$ 750 billion. Thus, with tremendous potential and huge population, India is set for high growth in consumer expenditure. With India's large young population and high domestic consumption, the macro trends for the sector look favorable. Online retail business is another format which has high potential for growth in the near future. The online retail segment in India is growing at an annual rate of 35 per cent, which would take its value from Rs 2,000 crore (US$ 429.5 million) in 2011 to Rs 7,000 crore (US$ 1.5 billion) by 2015. For instance the Tata Group firm Infiniti Retail, that operates its consumer durables and electronics chain of stores under the 'Croma' brand, is in the process of tapping net savvy consumers. Similarly, the Future Group, that operates a dedicated portal Futurebazaar.com for online sales, has revealed that it is targeting at least 10 per cent of the company's total retail sales through the digital medium.