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INTRODUCTION:
The increasing need of transparency in communications and contractual logistics as per regulations has opened up the scope of extreme business growth in the field of express COURIER SEGMENT and 3PL logistics growth in the Indian scenario. Certain factors have contributed to the rapid extension of courier industry to several metropolis, townships and even rural areas. The factors are as follows: The changing economic conditions of our country Technical advancement Improved transportation facilities Growing needs and demands of the people Liberalization Boom of the industrial sector Increase in trade and commerce Revolution in Indian Financial and Banking sector
4. Due to better market survey or market research, we have more customer centric data than our competitors.
Objective
To identify a cost benefit and a new business feasibility analysis about the startup business project dealing with express courier in the domestic logistic market
Porters 5- Forces
Bargaining power of Suppliers: suppliers having a great deal of power in setting and
negotiating the prices of their products and services to repair shops as their number is large.
Bargaining power of customers: because the customers see the service as undifferentiated and a "commodity" with little value difference between competitors, buyer power is also very high.
Barriers to entry: the barriers to entry are moderately low as license easily attainable. Threat from competitors : the large number of competitors in this field, Threat of substitutes : substitutes - such as do-it-yourself work
Swot analysis
Strengths Knowledge of Local Society customer Broader product and service line. 24/7 services. Contacts with suppliers ( gifts house, Bouquet shops. Aggressive strategy through cost benefits analysis. Technology based data structure and handling Opportunities Increasing number of customers. Engaged phone lines. Night Services. Threats Unorganized sector. National Courier Companys branch in town. Backward integration by the suppliers. awareness. Weakness Training efficient labor. Built up Reputation as its a startup
RequirementsCapital This is one of the most important requirements, a company requires starting and flourishing. Capital can come from own sources (family and friends) or from loans in this kind of business. Since our company is starting from scratch, so anything between 1, 00,000 to 25, 00,000 will serve our purpose, in the initial phase of the business. Legal registration legal registration of a business depends on the type of business one wishes to operate in for e.g. Sole proprietorship, one person company (OPC), Hindu undivided family (HUF) business units, partnership firms, company, cooperative societies, non profit organizations (NGO), etc. Our company is a private limited company. It is compulsory that it should be registered under the Indian companies act, 1956 and must essentially comply with the following * It should have minimum 2 members and at the maximum 50. * Minimum paid up capital of Rs. 1, 00,000. * Minimum two directors. * Private allocation of funds, only from the members, directors or their relatives etc. * It should strictly carry the words private limited at the end of it. Labor force The labor requirements will depend on the level of work (business to business, business to customers, etc.) one is involved into, the area (village, town, city, state, country etc.) or the field one is operating into and also its type of business (sole proprietorship, partnership, family business, company etc.) Initially, about 5 to 15 employees will be sufficient who will handle the various operations like * Receiver of parcel 2 persons for various customers.
* Recording of information 2 persons either manually or computerized. * Storage of parcels 1 person. * Transportation 5 drivers (2 wheelers and 4 wheelers together) * Delivery of parcels 5 persons. Official area it can be a building comprising of its own garage, store house and the office floors. Vehicles 5 vans for big size couriers, huge deliveries, bulk orders etc. In addition to above, about 2 to three motorcycles or bikes, especially for some personalized couriers, special orders, odd hours service, short distances, etc. Office spares it will include stores and spares stationery, cartons, packing materials, envelopes, and other supplies etc. Miscellaneous Insurance of the company (store-house, garage). Vehicle Insurance (vans and motorbikes). Work clothes with the companys name or logo imbibed on it. Computers and the required database software.
Marketing Strategy
Product Mix- The main aim is to provide a service that is punctual, resilient and has a wide reach. We aim at providing quick delivery to our clients to their doorstep assuring convenience. Its very important that customer is satisfied with the service and for that all such measures are incorporated that ensure the above virtues of the product. Competitors Market- There are several players in the industry like DTDC, First Flight, FedEx, DHL, etc. There is a common problem persisting in every company that is of delivery and operational inefficiencies. The operations of our company are designed in such a way that these inefficiencies are under control. The market is attractive and entry barriers are low. Thus, its very easy to be a part of this industry. Finding Customers- There is no need to find customers as there is a huge base which desires to utilize these services at a cheap and reliable way. The complex procedures are also simplified
and payment process is quite simple incorporating mobile and internet payments. This makes sense as the customer base increases and its quite easy to retain the customers. Market Segmentation - Segmented the customers in the following sectors:
Pricing Suggestions- The services are kept cheap since the network is already established and there is no high setup cost. Even the employees are cheap and there is no extra cost incurred other than the incentives. Promotional Strategies- It is important to establish the product in the minds of people and the best way for this is to give paper ads, pamphlets and hoardings. The main motto is to serve and this should reflect in the advertisements. Other than this what matters is the word of mouth which truly depends on the retention of customers. Distribution- The main aim is to bifurcate the existing distribution. This can be done by further creating a regional network that facilitates the extensive network. After creating a marketing strategy, its necessary to implement the same. The marketing team will make sure that the implementation of the same. Growth of the company:
80 70 60 50 40 30 20 10 0 2 m th on s 4 m th on s 8 mon s th 12 m onth s
Business Plan:
By looking at the potential in the market and the growth that is expected in the industry we plan to launch a premium and customized courier service. The recent trend in the industry has been very positive and has been very attractive too. In todays market there are many national and international players. Our business plan revolves around a few gaps in this market, which the other players seem to have overlooked. With extensive surveys backing our decision we plan to start a courier and logistics cum mover service. As our name says More Than Couriers we plan to project our offerings in the local gifts, couriers, and logistics services i.e. more than just couriers. Some of the special features and services we wish to offer as a company are listed below.
Features:
1. 24/7 service to deliver Birthday and Anniversary gifts at 12 o clock. 2. Local and national couriers distribution. 3. Transportation of material/logistics within the city. 4. Packers and movers. 5. Credit period extended to corporate clients. 6. Focus more on quality than on quantity. 7. Capture the out of reach markets and expand our customer base. 8. Toll free number. 9. Door pick-up and drop facilities. 10. Delivery tracking system that enables the customer to track the courier/items/etc. 11. High safety and precautionary measures taken while transporting fragile products.
12. On spot services completely customized service for premium clientele. 13. Courier on the go tie ups with corporate offices where in they just need to deposit the
Fixed Cost 25000 0 12000 26200 0 Variable Cost 28000 0 12000 52000 10000 0 60000 50400 0 76600 0 PROFIT 92000
Conclusion
More than Courierz: will initially operate through one city Hyderabad as its main centre... As the company grows and expands, we will hire trained and certified technicians who are able to prove they have superior customer awareness and interaction. It is the company's professional people who will fulfill the firm's contracts and goals. The largest part of the company's expenses will be in labor costs. Obtaining most of its Business through established Business entities and directly through the manufacturers.
This is our proposed Business Idea which provides us a 15% return approx. Brief concept can be explained during presentation.