ASSIGNMENT OF ELECTRONIC BUSINESS

New Business Plan

CHILLOUT BEVERAGE STORE
(www.chillbevstore.com)

SUBMITTED TO:-

Res. Shweta Ma’am

Faculty IPM Meerut SUBMITTED BY:

Umesh Kr Gupta

Vijeta Bharti

Vinod Yadav

Vishal kr. Singh

Vivek Ranajan

Vikash Kr Singh

Vivekanand Rai (G.L.)

Page 1 of 37
 ACKNOWLEDGEMENT

We take immense pleasure in thanking Resp. Shweta Ma’am for having

permitted us to carry out this new business plan.

We wish to express our deep sense of gratitude to our internal integration of our
group members for Internal Guide, for able guidance and useful suggestions,
which helped us in completing the business plan, in time.

Needless to mention that Resp. Shweta Ma’am, who had been a source of
inspiration and for her timely guidance in the conduct of our business plan.

Words are inadequate in offering our thanks to all the useful resources from
which we have been acrossed, and the encouragement and cooperation in
carrying out the business plan.

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Contents
Executive Summary................................................................................................................................................5
Business Description...............................................................................................................................................7
Industry overview-..............................................................................................................................................7
Company Description-........................................................................................................................................7
History and current status-.................................................................................................................................7
Goals and objectives-.........................................................................................................................................8
Critical success factors-.......................................................................................................................................8
Company ownership-.........................................................................................................................................8
Exit strategy-.......................................................................................................................................................8
Products / Services-................................................................................................................................................9
UNIQUE FEATURES...........................................................................................................................................10
RESEARCH AND DEVELOPMENT.......................................................................................................................10
PRODUCTION....................................................................................................................................................10
Industry & Market Analysis..................................................................................................................................11
Soft drinks Industry overview...........................................................................................................................15
Competitor’s analysis.......................................................................................................................................16
Marketing Strategies and Sales............................................................................................................................19
Market Segmentation, Targeting & Positioning strategy......................................................................................21
Targeting..........................................................................................................................................................22
Positioning........................................................................................................................................................22
Product/Service Strategy......................................................................................................................................23
Pricing Strategy..............................................................................................................................................24
Distribution Channel.....................................................................................................................................24
Promotional Strategy...........................................................................................................................................26
Sales Strategy and sales forecast............................................................................................................28
Development Strategy..........................................................................................................................................29
Management-.......................................................................................................................................................30
Operation Strategy...............................................................................................................................................31
Inventory..........................................................................................................................................................34
Production........................................................................................................................................................35
SOURCES OF FUND OR FINANCE..........................................................................................................................36
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 Start-up............................................................................................................................................................37

Executive Summary
Chill-out beverage is an click and mortar type of business having a
vast selection of liquor, spirits ,wine, and fine cigars , cold drinks as
well as a wide assortment of rare and hard to find liquor and smoking
accessories. As people use to spend a huge amount of money on
liquor, they will be ready to spend even more if they get it at the
place and time they want. Hence we’ll charge a bit more as delivery
charge like 10% on the purchase of less than 1000, 8% on the
purchase of 1000-1500, on the order of 1500-2000 we’ll charge 5%,
and on the order of 2000-2500 the charge will be 3% of the order and
the order of more than 2500 we’ll provide free delivery.
We will carry-on our business in Delhi and New Delhi region.
We’ll provide within Half an hour of the order, and we’ll also contact
to various guest houses and event Management companies and will
have contract to purchase our products.
Our business will be Click and Mortar hence we’ll take order online
and on phone, Apart from this we’ll contact various companies who
wish to advertise their product online once our store will start running
at a good pace. The initial investment will be from the partners
(Group Members) on equal proportion and the profit also will be
distributed accordingly.
The Beverages Industry is as on boom and the youth of today don’t
have time to visit personally at shops but however they manage but
when they’ll get the online purchasing facility they’ll take advantage

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of that and the use of internet is also becoming popular day by day
hence this is golden opportunity for Chill Out Beverages.

As in the market there no other existing player Chill out Beverage

Store found that the opportunity is more than risk as it is click and
mortar. Rs. 2crore is contributed by the seven partner equally. Some
of our friend is going to invest in our business. So we will raise Rs
3crore through personal finance.

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Business Description

Industry overview- On a nationwide basis, there are more than

5,000 stores that specialize in the sale of liquor, wine, beer, and
other spirits to the general public. On an annual basis, these
businesses aggregate generate more than $50 billion of revenue
and employ more than 200,000 people. This is a mature industry
and the future expected growth rate of the business is expected
to mirror that of the general economy.
Company Description- Chill-Out Beverage Store is a new business
and is unique of its type in Delhi. The company is owned by Mr.
Vivekanand Rai and He is Director of the company. Chill-Out
Beverage Store is in business of Wines, Beers and other
beverage products online. Chill-Out Beverage Store deliver the
products to the consumer within half an hour of the order.
History and current status- The current economy has remained
difficult over the past few years. However, Liquor Stores and
drinking establishments tend to fair well during difficult economic
climates. As such, the Liquor Store will be able to remain
profitable and cash flow positive in any economic climate. On a
nationwide basis, there are more than 5,000 stores that
specialize in the sale of liquor, wine, beer, and other spirits to
the general public. On an annual basis, these businesses
aggregate generate more than $50 billion of revenue and employ
more than 200,000 people. This is a mature industry and the

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future expected growth rate of the business is expected to mirror
that of the general economy.
Goals and objectives- We at Chill-Out Beverage Store have made it
our mission to supply the highest quality craft beer and
Beverages etc. to the widest possible audience. To that end, we
have compiled the largest and most varied selection of beers in
the world. In both our Traditional and online store, you can
select from more than 80 distinct styles of beer crafted by the
finest breweries around the globe. We have a selection of
thousands of beers from every state in the Union and every
continent on the map. We take pride in providing each of our
customers with their own unique beer experience. Cheers!
Critical success factors- Critical success factor of Chill-Out Beverage
Store is the delivery time which is just Half an Hour of order in
all over Delhi and New Delhi region and the time management
and punctuality of our delivery time. The variety at Chill-Out
Beverage Store also adds to the success of the company.
Company ownership- Chill-Out Beverage Store is owned by Mr.
Vivekanand Rai.
Exit strategy- As we at Chill-Out Beverage Store are confident
enough that we’ll not only be able to survive in the market but
also will be doing a good business and hence we don’t have any
exit strategy as such.

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 Products / Services-
Products

COLD DRINKS ALCOHOL SOFT DRINKS

 Pepsi Beer (all types of Barq’s Root Beer
 Lager and Ale)
 7UP Mountain Dew
 Mead
 Aquafina Diet Coke
 Sake
 Gatorade Diet Pesi
 Wine
 Mountain Dew Sunkist
 Cider
 Nimbooz Pepsi
 Perry
 Slice Big Red
 Alco pops
 Tropicana Sierra-Mist
 Wine Coolers
 Tropicana Red Mountain Dew
Twister Champagne (and
 other sparkling Coke
 Mirinda wines)

1. Fortified Wine
Brandy (and
Cognac)
2.
Rum

Tequila / Mescal

Vodka

Whiskey / Whisky
(including Scotch,

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 Gin

Aquavit

Pulque

Grappa

Schnapps

Absinthe

UNIQUE FEATURES
Delivery on time is our unique feature. We can deliver our producte in
30 minutes in anywhere in Delhi and we can assure our customers for
good quality products
RESEARCH AND DEVELOPMENT
WE do not manufacture products therefore R&D Is not very
important .but we are trying to improve our logistic and supply chain
management that we became able to reduce our cost and offer
products at lower cost.
PRODUCTION
Production is not applicable in our business. We outsource products
we do not manufacture products.

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 CHILL-OUT BEVERAGE
Industry & Market Analysis

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

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 * Indian Made Foreign Liquor (IMFL)

Alcoholic beverage industry is a well developed - Rs 8,200 crores (US

$ 1907 million) industry in India Major players in the alcoholic
beverages market - United Breweries (UB) Group (Bangalore),
Shaw       Wallace (Calcutta), Jagajit Industries (Kapurthala, Punjab),
Mohan Meakins (Solan, Himachal     Pradesh), Associated Breweries
& Distilleries (Mumbai). Per capita beer consumption in India is 0.5
litres; as against 20 litres in China, 100 litres each in USA  &
Germany, annually.

BEER: MARKET

 A 70 million cases market

 Market growing at  10-12 % per annum
 South and west zones account for bulk (> 75 %)  of this market
 Major beer consuming centers - Maharashtra (Mumbai)
 Karnataka (Bangalore); Tamilnadu (Chennai)

 Minimum economic size : 5000 kilo litres; 15000 kilo liters for
NRI proposals
 Around 40 units in organized sector, mostly regional players
 4 large breweries have 84% of the market
 Major beer brands (manufacturers) - King Fisher, Kalyani Black
Label (UB Group),       Golden Eagle (Mohan Meakins), Haywards

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 (Shaw Wallace), London Pilsner        (Associated Breweries and
Distilleries)
 Foreign brands - Stroh’s, Fosters
 Beer packed in 650,750 & 1000 ml glass bottles; usage of (330
ml) cans minimal
 Preference in the Indian market for strong beer
 Promotions and sponsorships (sports, musical events) to
promote brands
 States’ prohibition policies govern trade sales for beer
 Multi layer trade channel structure 
 Beer sold through the same outlets as IMFL
 Institutional sales of beer to star hotels, large restaurants, bars/
pubs
 Import duty on beer - 100 %  basic; 10 % surcharge; SAD : 4
% 
  Sales taxes - 45%, 5% cess (State subject).
  Excise Duty - Rs. 4/ Bulk liter in Karnataka (State subject)

LIQUOR: MARKET

 Market : 58 million cases 

 Past growth 15 % CAGR per annum
 Brown spirits - particularly whisky, rum & brandy account for  
over 75 % of this market
 South and North share 60% of market 
 Industry in the organized sector - an industrial license is
required to start manufacture
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 Major brands (manufacturers) : Signature, Blue Riband (UB
Group), Aristocrat  (Jagajit Industries), Smirnoff, Gilbeys Green
Label, Malibu, Archer’s Peach  Schnapps(International Distilleries
India), Passport (Seagram’s), VAT 69, Black & White, Black Dog
(United Distillers India)
 Preference for brown spirits (molasses flavor) in Indian market
 Liquor packed in 180, 375, 500, 750 and 1000 ML bottles - glass
and plastic bottles. 180 ML and 750 ML are fast moving 
 Promotions, sponsorships, surrogate advertising (sometimes)
done to build brands
 Open market : Maharashtra, J&K, Goa, Orissa
 Auction market : Uttar Pradesh, Rajasthan, Madhya Pradesh,
Bihar, Punjab, Chandigarh 
 Government Controlled : Tamilnadu, Karnataka, Delhi, Kerala
 Prohibition States : Gujarat, Manipur, Mizoram, Nagaland
 There are over 22000 liquor retail outlets spread across the
country 
 Sales tax (ad valorem), Bottling Fee, Liter Fee, Vend Fee, Gallon
age Fee,  Privilege Fee, Import/ export Pass duty etc. are some
of them. In Karnataka some of the taxes levied  are : Excise
Duty : Liquor from spirits - Rs. 45/-  bulk liter; Premium Malt
Whisky - Rs. 60/- bulk/ liter; Liter Fee - Rs. 20/- bulk liter; Sales
tax : 60%;  cess 5%
 Import duty on whisky, rum, gin & vodka, liqueur - 230 % +
SAD : 4 %

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Soft drinks Industry overview
Global sales of soft drinks exceed 327 billion liters and are valued at
more than US $393 billion annually. North America, Europe and Japan
are the most mature markets for global soft drinks. Coco Cola and
PepsiCo Inc has significant control over the global soft drinks market
and both have similar business organizations and processes
worldwide. Soft drink consumption has a market share of 46.8%
within the non-alcoholic drink industry; clearly, the soft drink industry
is lucrative with a potential for high profits. Coca-Cola is king of the
soft drink-empire and boasts a global market share of around 50%,
followed by PepsiCo at about 21%, and Cadbury Schweppes at 7%.”
Aside from these major players, smaller companies such as Cott
Corporation and National Beverage Company make up the remaining
market share.
The carbonates category was valued at INR 79,360.7m ($1,923.1m)
in 2008, representing a CAGR of 1.1% since 2003. By the end of
2013, the carbonates category will be worth INR 85,212.2m
($2,064.9m), with an expected CAGR of 1.4% between 2008 and
2013.
The ease of entry and exit does not cause competitive pressure on
the major soft drink companies. It would be very difficult for a new
company to enter this industry because they would not be able to
compete with the established brand names, distribution channels, and
high capital investment. Likewise, leaving this industry would be
difficult with the significant loss of money from the fixed costs,

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binding contracts with distribution channels, and advertisements used
to create the strong brand images.

Competitor’s analysis

SUBHASH LIQUORS PVT LTD

Products/Services : Highland Prince, XXX Fighter Rum, Party Vodka,
Alcohol Beverages, Green Berry, Alcohol Beverages Alcohol
Beverages, Alcohol - Beverage, Alcohol - Spirits, spirits alcohol, wine,
vodka, Liquor, Scotch Blended Whisky, Neutral Alcohol, Spirits,
Alcoholic Beverage, Brandy.

Tilaknagar industries ltd

Products/Services : Senate Royale Whisky, Mansion House Whisky,
Senate Whisky, Shot Whisky, Classic Whisky, Royal Choice Whisky,
Hott Silk Whisky, Castle Club Whisky, Brandy, Courrier Napoleon
Brandy, Savoy Club Rum, Vodka.

Visionary Brand Management (P) Ltd

Products/Services: Whisky, Rum, Brandy, Vodka, Alcoholic Beverage,
Liquor, Alcohol.

Radico Khaitan Limited

Products/Services: Alcoholic Beverages, Whisky, Brandy, Rum,
Vodka.

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Blossom Industries Limited
Products/Services: Beer from malt, alcohol strengths ranging from 5
to 8% v/v, whisky, rum, gin, brandy, vodka.

Optimum Food & Beverages Pvt. Ltd.

Products/Services: Soft Drinks, Soft Drink Concentrates, Mango
Drink, Club Soda, Packaged Drinking Water.

Asianlak Health Foods Ltd.

Products/Services: Fruit Drinks, Carbonated Soft Drinks, Bottled
Water.

Vipul Kumar Trading Co

Engaged in supplying and exporting drinks such as soft drinks,
nutritious soft drinks, flavored soft drinks, tasty fruit juice and health
fruit drinks.

Technometalics Farma
Deals in exporting and manufacturing of alcoholic beverages such as
aromatic alcoholic beverages, wines, aloe Vera drinks, aloe Vera
health drinks, aloe Vera refreshing health drinks and red wines.

These are few of the companies in India that offer the alcoholic and
soft drinks beverages in the market but one thing that we have
advantages over these companies is that all these companies have
specialized in one type of beverages whether it is alcoholic or non
alcoholic beverages. And we are providing both of these together so

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there will be a great potential for our company to get a bigger slice of
cake in this competitive market.

The major triggers of e-commerce in India were:

 Saves time and efforts
 Convenience of shopping at home
 Wide variety / range of products are available
 Good discounts / lower prices
 Get detailed information of the product
 You can compare various models / brands

And some of the major barriers at present were:

 Not sure of product quality
 Cannot bargain/Negotiate
 Not sure of security of transactions / Credit card misuse
 Need to touch and feel the product
 Significant discounts are not there
 Have to wait for delivery

So by utilizing the triggers of e-commerce and reducing the barriers

of e-commerce we can run our business successfully. Before starting
our business we are working on those barriers so that it will become
easy for we people to carry on our business. Since we are delivering
the branded products so it already eliminates the barriers related to
product quality. Secondly we start with aim to get the faith of people
on our business so at first we try to cover a small area by which
people have not wait too much for their orders. And there is also no
need to touch and feel the beverages products like clothes, cars,
electronics items etc.

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Marketing Strategies and Sales

Marketing strategy is a process that can allow an organization to

concentrate its limited resources on the greatest opportunities to
increase sales and achieve a sustainable competitive advantage
where Competitive advantage is the strategic advantage one business
entity has over its rival entities within its competitive industry.
Achieving competitive advantage strengthens and positions a
business better within the business environment. Marketing strategy
involves careful scanning of the internal and external environments.
Internal environmental factors include the marketing mix, plus
performance analysis and strategic constraints. External
environmental factors include customer analysis, competitor analysis,
target market analysis, as well as evaluation of any elements of the
technological, economic, cultural or political/legal environment likely
to impact success.
Once a thorough environmental scan is complete, a strategic plan can
be constructed to identify business alternatives, establish challenging
goals, determine the optimal marketing mix to attain these goals, and
detail implementation. A final step in developing a marketing strategy
is to create a plan to monitor progress and a set of contingencies if
problems arise in the implementation of the plan.

Strategies based on market dominance - In this scheme, firms are

classified based on their market share or dominance of an industry.
Typically there are four types of market dominance strategies:

Page 18 of 37
1. Leader—through chill out beverages have the great opportunity
to be the market leader as non of its competitors have this great
mix of product which we provided i.e. it’s all one stop solution
for beverages.
2. Challenger—chill out beverages does not follow that strategy as
we want to be best in our field since we not only look for B2B
business but also the B2C business i.e. with home delivery
facility even if the minimal order quantity is demanded from the
customers. So we give challenge to other to follow the
challenger strategies.
3. Follower—NA
4. Niches—as our business is basically focus on small area at its very
early stage. So chill out beverages focus on particular segment
of customers besides the B2B customers.

Porter generic strategies - strategy have the dimensions of

strategic scope and strategic strength. Strategic scope refers to
the market penetration while strategic strength refers to the
firm’s sustainable competitive advantage.
1. Product differentiation—it’s quite difficult to have a
product differentiation strategy for our company as we are
not manufacturing the beverages.
2. Cost leadership—this could be our edge over other
business as we are not going to have any intermediaries for
our B2B and B2C customers. And we directly procuring the
beverages from manufacturer and supplying to our

Page 19 of 37
 customers. So we can surpass more margins to our B2B
customers and profits to our B2C customer with ease of
shopping and ordering facility from their home and own
working places.
3. Value creation—first thing concerns with the value in the
mind of customers is price. So we gives more margin to our
customers it leads to value creation. Besides that facility for
the ease of ordering, payment, delivery time, and home
delivery is all helpful for our business to create value for
our customers.

Market Segmentation, Targeting & Positioning strategy

Market segmentation is the division of a market into different groups
of customers with distinctly similar needs and product/service
requirements. Or to put it another way, market segmentation is the
division of a mass market into identifiable and distinct groups or
segments, each of which have common characteristics and needs and
display similar responses to marketing actions. The purpose of market
segmentation is to leverage scarce resources; in other words, to
ensure that the elements of the marketing mix, price, distribution,
products and promotion, are designed to meet particular needs of
different customer groups.

Targeting
What is target? This is the real goal/objective in market that marketer
want to reach.

What percent of the population uses the product at all?

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What percent uses your brand?
How does that compare to competing brands?
What is the demographic profile of the product category?
Which media reach the users of this category?
Positioning
Positioning is an essential component -- and skill - in good marketing.
Perceptual maps are used to determine the position of a product,
firm, person, service or idea. Positioning maps or perceptual maps
can be simple, yet very effective marketing tools. It’s all about
getting a favorable image in the mind of customer compare to the
nearest competing product.

As we have already mentioned previously the consumption pattern of

beverages of the Indian consumers. So briefly we have a look on the
customers of our business.

Chill Out Beverages

B2C customer
B2B Alcoholic Beverages
customer 20-35 yrs working class

35-50 yrs class people

Licensed Retailers
Soft Drinks
Hotels & Restaurants
All age group people
Pubs & Bars consume soft drink
A
beverages. So targeting at
Parties & Ceremonies Page 21
the family of middle of 37
class
and above
Product/Service Strategy
As it was already mentioned the product and services which chill out
beverages offers to the customers. In the near future we are
concentrating basically on these two types of beverages. However our
company also plans to extend their product line by including other
beverages of alcoholic and non- alcoholic. Mainly plans to introduce
the fruit, milk, coffee, tea and other herbal juices.

This is our long term strategy in order to me the biggest market

player with huge presence physically as well as most recognized
online player in that industry. A list of our product and services is
mentioned in this plan.

Pricing Strategy
Since its nothing like charging a skimming price in this industry as
people are well aware of the prices of soft drinks but not very much of
alcoholic beverages. Since we are offering these products to our

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customer without any intermediaries so it’s a great edge for our
business to provide the products at their own place at the same
market price and we also make good money by that i.e. the margin
we give to the other intermediaries. We can also provide the products
at lower price than market for few products. One thing is that for B2B
customers we work like that but for B2C customer mainly are of
upper class which urge for the home delivery. So they are also ready
to give the extra charge for that as they are basically business class
people with very busy time schedule, so it is not easy for them to go
market and purchase these all things.

Distribution Channel
From the figure given below clearly shows how we are going to
distribute our products to our customers. We are in direct contact
with the beverages manufacturer for supply of their products. Since
we are more concentrating towards our B2C customers so we apply
the rule of attack from both and try to get more in touch with the
customer. As a customer can directly purchase the products by
making their order online directly to chill out beverages without any
difficulty. We have our employees for home delivery of ordered
products throughout the possible regions. We have also four
warehouses to cater the bigger picture of the market with quick
supply to their final destinations. Since our SCM and e-SCM both are
so strong which provide the extreme support for the exchange of
goods and services with information.

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 Flow of goods and services
Promotional Strategy
As the Indian market is well accepted the beverages whether it is
alcoholic and non alcoholic. People are well aware of the different
brands available in the market. So it is not necessary to go with the
Beverages
heavy promotion of the products and services that we offer. Basically
Manufacturer
promotion is all about to inform, persuade, remind and reinforcing the
customer to purchase our product.
Chill out
Beverages Page 24 of 37
They different ways of promotional strategy is-

 Advertising—in that case we have to only advertise our website so

that more and more people access to our website. Besides a part
of Google Ad words we are also advertise our products and
websites on the social networking sites this gives us the huge
reorganization among our targeted customers. Other facility is
above the line and below the line promotion which is done by the
manufacturer. So there is advantage because we have not to
spend too much for that.
 Sales promotion—we offer the customers these beverages products
at very beneficial and competitive price so that they go for our
business again and again. We have these sales promotions for
both of our B2B and B2C customers.
 Personal selling—this promotion strategy is mainly focus on the
B2B customers of our business so that we get regular business
from them.

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Sales Strategy and sales forecast

“Success never comes easily” in any business as e-business growing

at much better pace so we can hope for better sales in our business
as the consumers of the alcoholic and non alcoholic beverages are
growing.

We are aiming at an average of one crore sales per month and huge
amount of this comes from our B2B customers nearly 70-80% of our
business. For better sales strategy we need a quality sales force so we
recruit quality sales person for accomplishment of that task which
contact with the B2B customers for the institutional sales. We provide
them the facility of transportation and develop the customer
relationship management to ease the businesses with our customer.

Page 26 of 37
Development Strategy

Cost Leadership: Cost leadership is the strategy that focus on

making the organization Chill-Out Beverage Store more competitive
our product and more cheaply than competitors can. The logic behind
this strategy is that by providing product more cheaply than
competitors, we offer the product to customers at lower price than
competitors and there by hope to increase market share.

Differentiation Strategy: Successful differentiation allows the

business to charge premium price to the customers, leading to
average profit.

Focus: It is the strategy that emphasis our organization Chill-Out

Beverage Store more competitive by targeting a specific market,
product line or buyers group. We can use low cost approach, but only
for a narrow target market. The logic behind of this approach is that
our organization Chill-Out Beverage Store that limit our attention to
one entire market.

Development Timeline
 To achieve the breakeven point in 6 months.
 To become the market leader in 3 years.
 Delight each and every customer.
 Diversify the business in other cities.
Development Expenses
Depends on future growth and development.

Page 27 of 37
Management-
Company organization: Chill-Out Beverage Store
Management team
HR : Vivekanand Rai.
Finance : Vinod Yadav, Vijeta Bharti
Marketing : Vishal Kumar Singh, Vivek Ranjan
Operation : Umesh Kumar Gupta, Vikash Kumar Singh

Management structure and style: Formal and structured

Ownership: The initial investment will be from the partners
(Group Members) on equal proportion and the profit also will be
distributed accordingly. For this particular project, there is a
group of 7 people. Everyone equally participates in this project.
We are student of IPM, Meerut (Institute of Productivity &
Management), and this projected is started by us, every person
is equally responsible for the decision made in the organization
and liable for any wrongdoing.
Board of advisors or Directors: Umesh Kumar Gupta and
Vivekanand Rai.

Page 28 of 37
Operation Strategy

Operations strategy is the collective concrete actions chosen,

mandated, or stimulated by corporate strategy. It is, of course,
implemented within the operations function. This operations strategy
binds the various operations decisions and actions into a cohesive
consistent response to competitive forces by linking firm policies,
programs, systems, and actions into a systematic response to the
competitive priorities chosen and communicated by the corporate or
business strategy. In simpler terms, the operations strategy specifies
how the firm will employ its operations capabilities to support the
business strategy.

At head office we have one person who maintains the order details
from the website and verify the nearby address and payment details.
We are using the software to maintaining the detail, and as the
address mentioned by the consumer it would directly go to the nearby
warehouse.

It is very important for our organization to maintain the supply chain

and value chain by providing the services on time. In order to
maintain the inventory we have one store keeper in the ware house
that maintains the record of inventory and places the order
accordingly to the suppliers. He checks the consignments which has
arrived from the suppliers or distributers and maintain the record and
deliver to the head office, if there is any damage or problem he
reports this directly to the head office, at the same point in time it is
his task to keep the record of total product which has been delivered
Page 29 of 37
to the consumer after verifying the address and payment detains from
the head office. We have three employee at each ware house who
delivered the product at home, employees are provided with the
motorbike for the convenience and the fast delivery. Service is
available 24X7.

LOCATION

Location is critical to provide the product on time or within the time in

order to generate planned sales volumes. The business is highly
territorial. We have mapped the location of every retail liquor store in
New Delhi, and we have been working with executives of UB Group,
to determine the best possible location for the warehouse. Four target
areas were identified: the newly developing West Delhi, South Delhi,
East Delhi & North Delhi. Among these target areas, South Delhi has
been identified as our most promising business opportunity. We would
take a small room on rent rather than going for a big warehouse, that
room is equipped with all different verity of wine in fridge, with ice
cubes.

SUPPLIERS

Radico Khaitan Limited

Mathura Road
Plot No. J-1, Block B-1, Mohan Co-op
Industrial Area, Mathura Road, New Dekhi, Delhi.
Ph. No.-01126975334

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Jagatjit Industries Limited
Nehru Place
91, 4th Floor, Bhandari House, Nehru
Place - Delhi
Ph No.: 01126432641

Aspri Sprits Pvt Ltd

Okhla Industrial Area
T-11, Okhla Industrial Area, Phase-2, Delhi
Ph. No.-01141633982

Ram Hiya Wine and Beer Shop

Karol Bagh
2228-28, Haridhian Singh Road, Karol Bagh Delhi
Ph No.- 01128750271

Melco Wines Pvt. Ltd.

Connaught Place
2nd Floor, Plaza Cinema Building
Connaught Place, Delhi
Ph. No.-01123317897

Shaw Wallace and Company Limited

K.G. Marg
806, Ansal Bhavan, 16, K G Marg Delhi
Ph. No.- 01123714216

Page 31 of 37
Inventory

We manage a variety of complex liquor accounts, each with its own

particular needs. Our Warehouse Management System (WMS) allows
us to manage spirits inventory by SKU number and FIFO requirements
while providing CBP with the information they require.  

We have various tools to handle products with utmost care and our
wireless inventory control system provides us with on demand
accurate information.  Your Inventory information, including arriving
products, items on hand, orders in process as well as previously
shipped goods along with the corresponding POD’s are available 24
hours a day.  

We count our beginning inventory. This includes all bottles and kegs
in storage, as well as damaged bottles. Enter this data into a
spreadsheet. The spreadsheet should include each bottle's price and
compute total inventory value.

We compare sales to inventory. At the end of the inventory period

(generally one month), count the beverage inventory. Enter this data
into the inventory spreadsheet. Calculate the difference between the
previous night's inventory and the morning inventory. Divide this
number by your liquor sales to determine your beverage cost.

We review the beverage store room logs against our invoice records
for the inventory period. The beginning inventory plus bottles
purchased less bottles transferred to the consumer should match our
ending inventory. Breakage may affect this total slightly, so we
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instruct staff to maintain a list of broken bottles and provide the
broken bottle top as evidence.

Production
As an online liquor seller we do not have any production activity. We
are not producing liquor, we are in direct contact with the suppliers
and distributers in New Delhi. We check the inventory regularly and
update the inventory information every day, in case of excessive
demand sometime because of the festival season or marriage season,
we increase the no. of temporary employee.

Page 33 of 37
SOURCES OF FUND OR FINANCE
Since our business Chill-out beverage is an click and mortar type of
business having a vast selection of liquor, spirits ,wine, and fine cigars
, cold drinks as well as a wide assortment of rare and hard to find
liquor and smoking accessories, Which need a huge amount of
investment. There are several sources of fund through which we can
raise fund. Our budget for starting new online business is RS 5crore.
There are several sources through which we can raise money.

Following are the sources through which we are going to raise fund:-

1)Personal Sources:- A large number of start-ups are 'self funded' i.e.

Rs. 2crore is contributed by the six partner equally. Some of our
friend is going to invest in our business. So we will raise Rs 3crore
through personal finance.

Bank is the most common source of

2) Banks and Finance Companies-
funding in the form of loans, overdrafts, and other types of finance.
For arranging the remaining funds of Rs. 2crore, we are going to take
loan and also get tie-up with bank of Baroda. We have preferred to
this bank because of their low interest rate.

Following are our Projected Break Even Point (B.E.P) which we

assume to achieve in three year.

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Statement Showing the Break Even Point of Speed

Particulars Amount

(In Rs.)

Start-up
Requirements

Start-up Expenses
Domain Name Registration 15,000
SSL Encryption 15,000
Geo Trust True Site Certificate 35,000
Auction & Classified Software (Xcent) 80,000
Legal Fees 150,000

Research & development 2,80,000

Programming & Site Development 50,000
Site Hosting ( For 1st year ) 5,000
Launch Promotions 100,000
Search Engine Registration 10,000

A. Total Start-up Expenses 7,40,000

Start-up Assets
Cash Required 14,00,000
Stocks 83,00,000
Long-term Assets ( Computers (10)) 3,00,000
B. Total Assets 100,00,000

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1st Year Expenses

Wages & salaries 24,00,000

Rent 96,00,000
Utilities 15,00,000
Insurance 2,50,000
Taxes 5,00,000
Telephone 40,000
Internet charges 1,70,000
Direct Expenses 1,00,000
Sales and marketing 3,00,000
Interest on Loan (@ 20 %) 40,00,000
Licensing Charges 10,00,000
Amount paid to Liquor dealers 150,00,000
Amount paid to Beverage dealers 50,00,000
Miscellaneous 4,00,000

C. Total Expenses 40260000

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Total Expenses (A+B+C) 50, 00, 00,000

We expect that in 1st year we will achieve 10crore sales and our 1 st
year estimated profit will be Rs 5crore. In the second year our
expenses were same excluding the direct expenses, Salaries, amount
paid to dealers are to be increase by 10% which are estimated to be
Rs. 22,50,000 so our expenses for the 2 nd year will be Rs
4,25,10,000. In second year, our expected profit will be 6crore. So in
the middle of the 2nd year we will achieve the B.E.P. and after that we
will start getting actual profit.

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