Technology & innovation

Submitted to: Sir Qutub

Cracker Jack - A Subscription Box Service

Submitted by :
Muhammad Asfan (19385)
Muhammad Usama (19386)
Taimoor Ali Khan (19523)
Waqar Ahmed (19379)
Hassan mehmood arain (19380)
 1)INTRODUCTION

Shopping for products was frustrating, inefficient, and confusing. How were
customers supposed to navigate the vast range of options?

That is when subscription box idea was born.

A subscription boxis a package of products sent directly to a customer on a

monthly basis. Our boxes are a strategy and a method of product distribution,
while targeting a wide range of customers to cater a variety of specific needs
and interests. Our boxes vary in both cost and frequency, making them more
accessible to a greater range of customers with different socioeconomic
backgrounds. Boxes tend to range from Rs.2200 to Rs.5800.

A subscription box is a package of retail products sent directly to a customer

on a recurring basis. Subscription boxes are a marketing strategy and a
method of product distribution.
Many customers are not satisfied with the services provided by online sites.
Before paying high prices for perfumes, they want to check whether original
product is being sold or replicas one. Since customers of perfumes dont
switch brands rarely. To ensure the original quality of the product, we will
first send the boxes containing the 10 testers. Customers can select those
testers from our online website. Once customers are satisfied with the
product, they can order the full size product.

Mission: To revolutionize the shopping experience by creating a discovery

retail platform that provides consumers with the content and experiences
needed to make informed, value-oriented purchasing decisions.

Vision: To help customers cut through the clutter of shopping to find

products that really work for them.

Slogan: A monthly delivery of surprise & delight.

Market needs and trends

Pakistan, although a late entrant to the world of e-commerce, has recently

recorded a massive rise in online shoppping trends and other e-commerce
businesses. Such exponential growth trends over the past few years with
US$30 million being spent on online purchases currently depict a highly
positive picture for the future and the size of Pakistans commerce market is
expected to reach over US$600 million by 2017.

One of the most important factors in the equation is the rate of internet
penetration in Pakistan. Pakistan internet enabled population is limited to
around 30 million users today. This, however, is expected to raise up to 56
million users by 2019.

Marketing

Advertising on desktop and mobile sites.

Google Adwords (Interest Based Marketing).

Blogs.

Using Paid Search and Search Engine Optimization (SEO).

Strong social media presence by advertising on Facebook, Instagram,

Pinterest and YouTube.

Competitors

Direct Competition: No direct, as we are the first movers in PK for this

industry.

Indirect Competition: Online stores like Daraz, Lootlo.pk, Yayvo etc.

Competitive Advantage

-Monthly delivery of self selected testers is not provided by any shopping

site.
-Because of bulk buying in future, we will be getting testers free of cost,
which eventually give us an opportunity to reduce prices and increase sales.

Price of Product

List price: Price will vary based on the kind of subscription the
customer opts.
Discounts: Depends on the quantity and subscription period.
Payment period and credit: Clients will be given choice to pay
through credit cards & COD
Boxes tend to range from Rs 2200 to Rs 5800.

Financial Objectives

In less than a year, the target is 200 subscribers per month. In 2nd year,
the target is for 500 Subscribers per month.

-In the first year, 200 customers revenue = 8.4M (3500*200*12)

-2.43M profit in first year.

-In the second year, 500 customers revenue = Rs 21M

-In the third year, 800 customers revenue = Rs 33.6M

-In the fourth year, 1100 customers revenue = 46.2M

-In the fifth year, 1400 customers revenue = 58.8M

 -Total start up cost is Rs 5970000/-

-Total investment required would be Rs 20, 00,000/-

-15% profit per year can be given to investors.

To minimize product cost by ordering in large quantity from suppliers.

To decrease variable cost from courier companies by providing them
more business in the coming time.
Marketing costs will be reduced.
Tester costs will be reduced.

Year 1 Year 2 Year 3 Year 4 Year 5

Revenue 8.4M 21M 33.6M 46.6M 58.8M

Expenses 5.97M 6.73M 7.63M 8.53M 9.4M

Profit 2.43M 14.27M 25.97M 38.07M 49.4M

-Total investment required Rs 20M.

-10% return can be given.

EXPENSES FORECAST
 Titles Year 1 Year 2 Year 3 Year 4 Year 5

Marketing 450,000 400,000 350,000 300,000 250,000

Tester / 300,000 250,000 200,000 150,000 100,000

Samples cost

Warehouse 75,000 25,000 25,000 25,000 25,000

Advance +
25000 Per
year
Perfumes full 5,000,000 6,000,000 7,000,000 8,000,000 9,000,000
bottle cost
Customized 50,000 50,000 50,000 50,000 50,000
boxes
Website and 70,000 5000 5000 5000 5000
other costs.
Courier Rs 190 / Rs 190 / Rs 190 / Rs 190 / Rs 190 /
charges KG KG KG KG KG

Total 5970000 6730000 7630000 8530000 9405000

Regulations and IP

We are first movers in this industry, this is our own generated idea.
Furthermore, Import and export license will be required. Regulations of
customs will be followed.
 Team

1) Muhammad Asfan: Having experience of 5+ years experience in web

designing, Affiliate marketing and social media marketing.

2) Muhammad Usama Lakhani: Experience of working in PSO, KVTC,

DMK HR consultancy. Currently running Ecommerce platform
www.OnlineBooksOutlet.com. Experience in handling marketing
campaigns.

3) Taimoor Ali Khan: BS from IQRA University and have 2 years experience
in networking industry.

4) Hassan Mehmood: BBA from Bahria University. Expert of financial

analysis and project forecasting.

5) Waqar Ahmed: HR Specialist from Bahria University. Specialized in

managing HR relation, LND and recruitment and selection. Having
knowledge of custom clearance.

Our business requires technological experts in diversified fields including

Website designing and management, Online marketing, Import of products,
Individuals with ecommerce background experience, Customer handling,
Products analysis and financial planning and networking solutions. Our team
has the complete expertise that is required to make our business successful.