At Beginning

Particulars Year 0
Market size of stainless steel (in mn) 150000
Stainless steel utensils share 53%
Market size of stainess steel utensils (in mn) 79500
Amazon's market share 1%
GMV of SS Utensil Category on Amazon (in Rs Mn) 795
Average order amount per customer for SS utensil 1000
Number of customers who purchased SS (in mn) 0.8

Facts & Assumptions:

SS = Stainless Steel
The average order amount of stainless steel utensil is assumed to be Rs.1000
Stainless steel market will grow at a CAGR of 6% p.a.(same as GDP growth rate)
Number of customers who purchased SS utensil in Year 1 have been calculated in a
different sheet, they will increase by same % in year 2 and then decline by 10%
The average order value increases by 5% every year
Average cost of SS utensils per kg is Rs. 1000, it will grow by 5% every year after Year1
Revenue: Referral and Closing free are assumed to be 8% of total GMV
Operational Cost (Logistics/Shipping cost) is calculated in sheet 2
Risk-free rate of 8% is taken as a proxy for discount rate
 Particulars Year 1 Year 2
Overall growth of SS Utensil Market 6% 6%
SS Utensil Market Size (in Rs Mn) 79500 84270
% growth in no of customers who purchased SS Utensil 58.02% 58.02%
No of Customers who purchased SS utensil(mn) 1.3 2.0
% growth rate of order value 5% 5%
Avg order value per customer (Rs) 1050 1103
GMV of SS Utensil Category on Amazon (in Rs mn) 1319 2189
Market share of Amazon in SS utensil Category 1.66% 2.60%
Avg cost of SS utensils per kg 1000 1050
Volume of SS Utensils sold (in mn Kg) 1.32 2.08
Referral & Closing Fee (in % of GMV) 8% 8%
Revenue: Referral and closing fee (in mn) 105.53 175.09
Operational Cost: Transportation & Shipping Expenses (in mn) 59.06 93.32
Try & Buy Cost (in mn) 5.60 8.84
New initiatives:
Seller on-board cost (in mn) 9.60 9.60
Bus Campaign 8.76
Marketing Campaign:
Dhanteras-Mothers' Day 1.74
Promotion activities: ATL Expense (in mn) 77 85
Net Profit Net inflow (in mn) -54.76 -23.42
Discount Factor 0.9259 0.8573
Present Value of Net Inflows (in mn) -50.7064 -20.0807

Net Present Value till 2022 (in mn) 3.49694039

Year 3 Year 4
5% 5%
88484 92908
48.02% 38.02%
2.9 4.1
5% 5%
1158 1216
3401 4929
3.84% 5.31%
1103 1158
3.09 4.26
8% 8%
272.12 394.36
138.14 190.65
13.09 18.07
7.68 7.68

94 98
19.71 79.78
0.7938 0.7350
15.6462 58.6377
Particulars
Total population in India (in mn)
Digital penetration in India
Population using digital (in mn)
% of population on ecommerce
Population using e-commerce (in mn)
% of population reached through bus camapign+ ATL activities + Social media
Number of users reached through bus camapign+ ATL activities+Social media (in mn)
% of users who will take the action
Number of users who will take the action (in mn)
% of users who will actually buy the product
Number of users who will actually buy the product (in mn)

Facts & Assumptions:

Digital Penetration in India is 30%: World Bank Report
People using ecommerce: 25% of internet population: IBEF Report
Our campaign will reach 50% of population using e-commerce
Only 5% of users take an action after any marketing and digital campaign
Out of the users that take action, only 50% buy the product
Amount
1340
30%
402
25%
100.5
50%
50.25
5%
2.5125
50%
1.25625
 Shipping/Logistics Cost

Particulars Year 1 Year 2 Year 3

Volume of SS Utensils sold (in mn Kg) 1.32 2.08 3.09
Non-FBA Volume of SS Utensils sold (in mn Kg) 0.79 1.25 1.85

Particulars Local Regional National

Weight 15.0% 35.0% 50.0%

Standard size Local Regional National

<500gm 38 46 66
500gm-1kg 54 67 91
1kg-2kg 64 82 111
2kg-3kg 74 97 131
3kg-4kg 84 112 151
4kg-5kg 94 127 171

Source:
https://services.amazon.in/services/sell-on-amazon/pricing.html?ref=as18_in_soa_sticky_nav_pricing
Facts & Assumptions:
The ratio of prime subscribers to non-prime is 2:3
Amazon bears shipping cost of FBA i.e. 60% of orders and seller bears
cost of 40% of the orders
ing/Logistics Cost

Year 4 Year 1
4.26 Weight Order Unit Avg Cost Total Cost
2.55 <500gm 5% 0.04 0.16 54.80 8.67
500gm-1kg 30% 0.24 0.32 77.05 24.39
1kg-2kg 30% 0.24 0.16 93.80 14.85
2kg-3kg 20% 0.16 0.06 110.55 7.00
3kg-4kg 10% 0.08 0.02 127.30 2.88
4kg-5kg 5% 0.04 0.01 144.05 1.27
Total Shipping Expense 59.06
Year 2
<500gm 5% 0.06 0.25 54.80 13.71
500gm-1kg 30% 0.38 0.50 77.05 38.54
1kg-2kg 30% 0.38 0.25 93.80 23.46
2kg-3kg 20% 0.25 0.10 110.55 11.06
3kg-4kg 10% 0.13 0.04 127.30 4.55
4kg-5kg 5% 0.06 0.01 144.05 2.00
Total Shipping Expense 93.32
Year 3
<500gm 5% 0.09 0.37 54.80 20.29
500gm-1kg 30% 0.56 0.74 77.05 57.05
1kg-2kg 30% 0.56 0.37 93.80 34.73
2kg-3kg 20% 0.37 0.15 110.55 16.37
3kg-4kg 10% 0.19 0.05 127.30 6.73
4kg-5kg 5% 0.09 0.02 144.05 2.96
Total Shipping Expense 138.14
Year 4
<500gm 5% 0.13 0.51 54.80 28.00
500gm-1kg 30% 0.77 1.02 77.05 78.74
1kg-2kg 30% 0.77 0.51 93.80 47.93
2kg-3kg 20% 0.51 0.20 110.55 22.60
3kg-4kg 10% 0.26 0.07 127.30 9.29
4kg-5kg 5% 0.13 0.03 144.05 4.09
Total Shipping Expense 190.65
 Net Inflow of Touch, Fe

Particulars Year 1
Volume of SS Utensils sold (in mn Kg) 1.32
Volume of SS utensils eligible for Touch, feel & Buy (in mn kg) 65% 0.857391
Volume of SS utensils who will opt for Touch, feel & Buy (in mn kg) 50% 0.428695
Volume of SS utensils that will be returned (in mn kg) 25% 0.107174
Logistics cost for volume of SS utensils returned (in mn) 100.22 10.74
Volume of SS utensils opting for Touch, feel & Buy: Prime subscribers 40% 0.171478
Volume of SS utensils opting for Touch, feel & Buy: Non-Prime subscribers 60% 0.257217
Income earned for Touch, feel & Buy from non-prime subscribers 20 5.144344

Net Cost of Touch, Feel& Buy strategy for amazon -5.60

Facts & Assumptions:

The eligible order size for Touch, Feel & Buy: >1kg
The eligible volume for Touch, Feel&Buy is 65%: calculated
Out of eligible volume, only 50% will opt for Touch, Feel & Buy
Touch, feel&Buy will be exercised on 25% of the orders by customers
Ratio of prime subscribers to non-prime is 2:3
Net Inflow of Touch, Feel & Buy initiative

Year 2 Year 3 Year 4 Order size weight

2.08 3.09 4.26 1kg-2kg 30% 87.1 46.15%
1.354839 2.005417 2.767854 2kg-3kg 20% 102.6 30.77%
0.677419 1.002709 1.383927 3kg-4kg 10% 118.1 15.38%
0.169355 0.250677 0.345982 4kg-5kg 5% 133.6 7.69%
16.97 25.12 34.67 Weighted Avg Cost 100.22
0.270968 0.401083 0.553571
0.406452 0.601625 0.830356
8.129034 12.0325 16.60713

-8.84 -13.09 -18.07

 Cost of getting retailers on-board

Particulars Year 1 Year 2 Year 3 Year 4

No of Retailers/Manufacturers 6000 6000 6000 6000
% of unorganised retailers/manufacturers 80% 80% 80% 80%
Number of retailers unorganised 4800 4800 4800 4800
Target % to bring a retailer onboard 10% 10% 8% 8%
No of retailers onboarded 480 480 384 384
Avg Training/on-boarding cost per retailer 20000 20000 20000 20000
Expense for retailer onboarding(in Rs mn) 9.6 9.6 7.68 7.68

Facts & Assumptions:

SS = Stainless steel
The number of retailers on-boarded from unorganized sector will increase in
1st 2 years, remain constant in 3rd year, and decline in 4 th year
The average cost of training per retailer is Rs. 20000
0.36
 Marketing Campaign fo
Price of diesel:Rs 67/litre
From To Distance Mileage (kmpl) Fuel Consumption Cost
Delhi Dehradun 258 5.5 47 3143
Dehradun Chandigarh 171 5.5 31 2083
Chandigarh Ludhiana 106 5.5 19 1291
Ludhiana Jaipur 581 5.5 106 7078
Jaipur Ahmedabad 677 5.5 123 8247
Ahmedabad Surat 260 5.5 47 3167
Surat Indore 490 5.5 89 5969
Indore Bhopal 190 5.5 35 2315
Bhopal Nashik 600 5.5 109 7309
Nashik Mumbai 160 5.5 29 1949
Mumbai Pune 145 5.5 26 1766
Pune Mysore 900 5.5 164 10964
Mysore Bangalore 140 5.5 25 1705
Bangalore Chennai 340 5.5 62 4142
Chennai Hyderabad 620 5.5 113 7553
Hyderabad Nagpur 500 5.5 91 6091
Nagpur Raipur 280 5.5 51 3411
Raipur Kolkata 940 5.5 171 11451
Kolkata Patna 580 5.5 105 7065
Patna Varanasi 280 5.5 51 3411
Varanasi Allahabad 125 5.5 23 1523
Allahabad Lucknow 200 5.5 36 2436
Lucknow Agra 333 5.5 61 4057
Agra Delhi 230 5.5 42 2802
110928
Marketing Campaign for Year 2 (Kitchen King)

City Rent for 1 month Rent for 15 days Note 1: Machine & Equipment
Delhi 15000 7500 AR enabled screens
Dehradun 7000 3500 Installation
Chandigarh 10000 5000 Fittings & Fixtures
Ludhiana 9000 4500
Jaipur 8000 4000 Note 3: Rentals
Ahmedabad 9000 4500 Bus
Surat 10000 5000
Indore 8000 4000 Note 5: Miscellaneous
Bhopal 9000 4500 Bus décor
Nashik 7000 3500 Lights
Mumbai 15000 7500 Electricity/ Battery
Pune 10000 5000 Other expenses
Mysore 9000 4500
Bangalore 15000 7500
Chennai 9000 4500 Note 6: Employee Compensation Cost
Hyderabad 10000 5000 Salary (1 driver & 1 salesperson)
Nagpur 8000 4000 Sustainance Allowance
Raipur 7000 3500 Other perks & benefits
Kolkata 10000 5000
Patna 7000 3500 Total Cost on the campaign
Varanasi 7000 3500
Allahabad 8000 4000 The bus campaign will cover 24 cities throughout the year
Lucknow 9000 4500 It will stay for 15 days in each city, stopping at crucial junctions
Agra 8000 4000 The company will pay municipality tax for 15 days in each city
112000
 Units Amount
3 6300000
2 7000
2 15000 6322000

Units Amount
1 1200000 1200000

Units Amount
12000
10000
20000
10000 52000

Units Amount
2 600000
2 240000
2 120000 960000

9 (in mn)

cities throughout the year

ty, stopping at crucial junctions Facts & Assumptions:
lity tax for 15 days in each city
Digital marketing:
Facebook Units Instagram
Average people reached per day 1500 Average people reached per day
Cost per 1000 People Reached 700 Cost per 1000 views
Total Cost for Impression per Day 1050 Total Cost for Impression per Day
Conversion rate 0.14 Conversion rate
Average CPC 1.8 Average CPC
Total CPC per Day 378 Total CPC per Day
Total advert Spend per day 1428 Total advert Spend per day
No of days of campaign 60 No of days of campaign
Total Spend on Facebook 85680 Total Spend on Instagram

Radio Marketing:
City Radio Station Cost per week
Delhi Red FM 8918
Bangalore Red FM 3224
Kolkata Red FM 2400
Mumbai Red FM 8781

ATL activities:
Particulars Cost per month
Hoardings at bus shelter 470000
Metro back lit panel 18000
488000
 Social Media & Digital Marketing Campaign for Year 2

Units Youtube Units

1500 Average people reached per day 1500
800 Cost per 1000 People Reached 900
1200 Total Cost for Impression per Day 1350
0.16 Conversion rate 0.12 Facts & Assumptions:
2.3 Average CPC 1.5 Two campaigns: one on Dhanter
552 Total CPC per Day 270 Activities: Digital AD on Faceboo
1752 Total advert Spend per day 1620 Radio marketing for a month for
60 No of days of campaign 60 2 ATL activities: Hoarding on 20 b
105120 Total Spend on Youtube 97200
288000

Cost for 1 month

35672
12896
9600
35124
93292

Total Cost 0.869292 (in mn) For 1 campaign

1.738584 (in mn) For 2 campaigns
Facts & Assumptions:
Two campaigns: one on Dhanteras and the other on Mothers' Day is launched
Activities: Digital AD on Facebook, You Tube, Instagram
Radio marketing for a month for these 2 events
2 ATL activities: Hoarding on 20 bus-stops and back lit panel on metro
 Above-the-line promotion acti
ATL activities:
Magazine & Newspaper:
Particulars Total Cost per insert/per month Total Cost for 12 inserts annually
HT Brunch 350000 4200000
Cosmopoliton 150000 1800000
Times of India 360000 4320000
Hindustan Times 447300 5367600
15687600

TVC
Particulars Total Cost per month Total Cost for a year
Star Plus 3718400 44620800
Sony Max 686000 8232000
Sab TV 728000 8736000
61588800

Total Annual Cost 77.2764

Particulars Year 1 Year 2

Increase in ATL Expense 10.00%
ATL Expense (in mn) 77 85
Above-the-line promotion activities

Facts & Assumptions:

One page AD on magaines once in a month
Rate: 3600 per sq cm Ad of 10x10 cm 100 sq cm AD in 2 national newspapers once evry month
Rate: 4473 per sq cm Ad of 10x10 cm TVC of 20 sec for a year on Major 3 channels
The ATL expenses will increase by 10% in year 2 & 3, whe
increase by 5 % in year 4

Rate: 6640 per sec per day Ad of 20 sec

Rate: 1225 per sec per day Ad of 20 sec
Rate: 1300 per sec per day Ad of 20 sec

Rs (in mn)

Year 3 Year 4
10% 5%
94 98
once in a month
newspapers once evry month for a year
Major 3 channels
ase by 10% in year 2 & 3, whereas it will
Number of users who buy the product