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Prepared for:
Sir Rai Farukh
Management Sciences Department
University of Education, LMC, Lahore

Prepared By:

Ibrar Asghar Butt

Roll no. 117
Muhammad Hamid Asghar
Roll no. 124
Group: 13
Section: 02


Date of Submission: 1 June, 2015


Retailing is one of the fastest-growing segments of the economy. As one of the
nation's largest employers, the retail industry provides excellent business opportunities for
you. At least one-third of the 500,000 or so new enterprises launched each year are retail
operations. The entrepreneurs behind these ventures risk their capital, invest their time and
make a living by offering consumers something they need or want . Retail stores business is
emerging as one of the good business ventures in Pakistan as it provides all the basic
merchandise under one roof. The structure of Pakistans economy has changed from a mainly
agricultural base to a service base. Agriculture and industry sector now account for about
22% and 24% of GDP respectively, while the services sector accounts for 54% of the GDP. A
retail store is an establishment which specializes in satisfying a wide range of the consumer's
personal and residential durable products needs; and at the same time offering the consumer
a choice multiple merchandise lines, at variable price points, in all product categories. Retail
stores are part of the daily life of almost every person. This is the same area, we have
considered for choosing as a startup for our entrepreneurial venture of retail store. Because of
the fact, Pakistani economy is moving from traditional to modern era, there is an extensive
scope in growth of such retail stores. Manpower of 4 people will be required for retail store
business. These employment opportunities will be also beneficial for economic conditions if
huge amount of these stores are established around country. An approximate budget of
1Million is required for this business. With all this capital and manpower the business will be
able to generate revenues and profits from first year of inception. Store will be located in
Sanda Khurd Lahore. Proposed business will offer items of daily necessities. A detailed
analysis reveals that there are many opportunities to capitalize and earn enormous profits
through this business. The dense population of the area is an opportunity to grow.. As Retail
stores offer opportunities to People who want to start new businesses with small capital (1Lac
Minimum) therefore this idea of retail store is very beneficial for entry level entrepreneurs.

To introduce a new era of business module in Pakistan, we are people of four
members are going to establish a retail store, a unique, universal, and versatile sales floor. It
generally provides almost every kind of consumer goods. To make it successful we have
chosen developing region of Lahore city to inaugurate one outlet initially..

We have a value proposition a shop where Everything at your side. So that

customers can purchase products in friendly environment at a lower price, never be come in
mind I am in shopping. We will not only sell quality products and services but also values
and trust. Thus we would like to capture 25% market share within 2 year

Since we have selected Lahore for starting new venture so for now we will just
consider Lahore as our target market. This Retail store business will sell items such as Surf,
Tooth paste, Branded oils, Wheat, Sugar, Rice, Shampoos, Soap, Tea, powdered milk, Bottles,
Mineral Water, Candies, Diapers, Stationery Items, Small Provision items, Branded Jams,
biscuits and chocolate / toffees etc. Total Cost Estimate of the project is Rs.1 million with
Fixed Investment of Rs. 0.2 million and Working Capital of Rs. 0.8 million. The following
factors for success of retail store business are important to operate it an entrepreneurial way,

1. Selection of products and brands to be sold

2. Negotiation and marketing Skills

3: Manpower requirement


Our business is established mainly to provide consumer goods and services to people
in more comfortable way where they will be able to collect their any kinds of necessities with
the assurance of quality and standard in an environment friendly manner.


We sell goods with minimum cost in friendly environment.


To establish a market environment where customer will get quality products and
services at a reasonable price in an environment friendly manner


Proposed retail store business will offer items of daily necessities. The demand for
these items is directly proportional to dense population. The merchandise is purchased from a
variety of well-known manufacturers such as Procter & Gamble as well as a number of other
generic branded companies. We will continue to find new product lines that can be added to our

Target Market:
We have chosen Sanda Lahore as Target Market of our retail store. The estimated
population of this area is about more than 2Million that will be favorable for our Business.
Employment Generation:
The proposed project will provide direct employment for 4 people.

Management Summary
The owners of the retail store believe very strongly that relationships should be
forthright, work should be structured with enough room for creativity, and pay should be fair
and equitable in relation to what the industry is paying. With the right people in place the
Dollar Store will have the incentives to encourage quality people to stay.

Critical success factors that will distinguish our retail store business from traditional
stores are,

Marketing Skills
Personal Advertising with Customers
Marketing mediums
Use of computer
Store layout and presentation
Suggestions from customers continually
Customer focused
Proper Inventory Management

Marketing Skills
Effective marketing skills are required for this start up. These marketing skills will
help us when,
To target potential customers
To retain long term customer relations.

Personal Advertising with Customers

Business of retail store is completely dependent upon sales revenues generated
through sales of goods therefore it is very important to address customers. Personal
advertising will play an important role in promoting our business.
Marketing mediums

The important marketing mediums for our new venture would be

Flyer distribution
Frequent clearance sales
Traditional Retail stores often do not use any pricing strategy they just follow the
Principle of Bringing and Selling. This is the reason they are rated lowest at
Entrepreneurial continuum. Every entrepreneurial retailer has a basic philosophy towards
pricing their product. Some pricing strategies that we intend to use are as following,
Providing the consumer with an incentive to become a repeat customer by offering a
future discount.
Frequent clearance sales
Including a gift with purchase, buy one get one free.

Store layout and presentation

Traditional retail stores display commodities poorly and their owners never care about
use of space. Todays successful retailer is the one making the most profitable use of every
square foot of space in the store and in the warehouse. Because space is costly, retailers need
to take a strategic approach to its use. Floor patterns, location of merchandise, amounts of
merchandise and the appropriate displays are critical in determining space. Misuse of space
can be as detrimental to success as poor buying. It is very important for every store to create a
suitable atmosphere and appealing presentations in order to attract the consumers buying
decision. In a world where one can find identical merchandise in more than one store, layout
and presentation becomes a key-differentiating factor. The proposed store would be airconditioned. Goods would be properly arranged in shelves categorically.
Use of computer
Traditional retail stores have no concept of use of computer in their stores. The
computer is an invaluable aid in processing the large number of transactions and vast
amounts of information involved in managing a retail operation. The amount of data needed
for merchandise planning would require hundreds of man-hours to produce, whereas a well-

designed computer system can perform the task in seconds. Software for inventory and sales
recording and management should be used to have updated data at all the times. This
software will not only record each and every sales transaction but also will update stock and
cash position after every transaction.
Suggesstions from customers on regular basis
Old School Retailers dont take reviews from customers. We will continuously take
reviews, suggestions from customers regarding changes that customer wants, and reviews
about their satisfaction.
Customer focused
From day one our strategy will be customer focused profits will automatically inflow.
In contrast traditional retailers are rarely customer focused they just focus on reaping high
profits which results in loss of customer.

Obviously Retail store location selection is a major decision while starting new
venture. We have selected a Shop of 2 Marlas in Sanda Khurd Lahore on rent of 4000
monthly. The Shop will be acquired on rent basis. And this rent of first month plus additional
amount of advance will be paid out from our fixed investment. In addition to that building
rented carriage car will be required and this amount of rent will be paid out through reserve
cash in hand.

A SWOT Analysis is a strategic planning tool used to evaluate the Strengths,
Weaknesses, Opportunities, and Threats involved in a project or business venture.
Opportunities and threats originate from outside while strengths, and weaknesses from inside.
A SWOT for our retail store is,


Sole ownership concept

Work at own discretion
Small capital required for start up
Easy availability of resources (manpower/salesman)
Dense population of area


Effective use of Space in store

Making store environment attractive
Taking continual suggestions from customers
Focusing on products that customer demands.


Basic model is buying and selling.

An effort to make retail store entrepreneurial venture may suppress profits.
Lack of experience.
Entrepreneur will have to sit on cash counter to avoid chances of fraud by


In 2015-16 budget Government of Pakistan is considering to apply tax on retailers.

Government polices
High competition
Our Entrepreneurial retail store model might be copied by competitors
Easy diversification towards new product mix

Our retail store business falls in sole proprietorship business. Hence it is free from
income taxes by Government. But the prospective law is under consideration by Government
of Pakistan to be approved in 2015-16 Budget, by which all retailers will be taxed.
Intellectual property:
We will designed our logo which will be our special trademark and it will differentiate
us from others. Our strategies and intellectual designs are also important that would not copy.
In this regard, we will have copyrights on these facts. We have introduced unique ideas which
also cannot be copied by others.
We will make registrations according to the rules of law with supporting documents
for the above mentioned intellectual properties

We will introduce four types of packages for our different levels of customers which are
environment friendly:
Children: We will introduce new shopping bag for children with cartoony and


Women: For women we have introduced special bags with some tips of cooking
Men: some beauty tips for men included in the bag for men
We are following cost leadership strategy to capture 25% share from nearby retail
stores when start up. We want to create competitive advantages by reducing cost of supply,
distribution. .
Today branding has become so important that there is hardly anything that has no
brand identity. We believe the name of our business is a unique identity, people can easily
recall our brand name so that potential customer will attract as well as turn in to our loyal


The store will operate for 18 hours from morning to midnight. Operating time depend
on localities requirements. This is the area which does not differ where we cannot use any
entrepreneurial tool to become better than traditional competitors.

Strategy and Implementation Summary

The retail 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


Two major elements for success in retail store are,
1: Retail store success is reserved for those who are prepared to commit themselves to
2: This success is also reserved for those who provide attractive facilities to customers.

Locations of Renowned names of retail sector in Lahore

City Areas Lahore

Mustafa Town Johar Town
Wapda Town Nespak
Batala Colony
Muslim Town Surgodha
Ameen Park


The store will offer the following broad categories of goods to its customer:

Wheat, Flour and Dals 10%

Groceries and food items 10%
Baby care shampoos
Soaps detergents and chemicals10%
Ice-cream and beverages 10%
Calling cards 10%
Other general items 20%

Customer service:
1. Arranging products in a discipline way
2. Offering huge number of trolley
3. Giving tag which involved price, date of purchasing

4. Opening more than four of collection booth to minimize queue line

5. Opening complaining box
6. Automated direction system
7. Providing after sales services in special cases

Major Wholesale Markets
Retailers can acquire retail commodities via wholesale markets in every large city of
pakistan. The major wholesale markets in Lahore are:

Shahalam Market/Rang Mahal

Akbari Mandi
Urdu Bazar
Moochi Gate

12.Competitors Grid




Sanda Lahore


Sanda Khurd Lahore


Islampura Lahore


Store Name

2% Discount

Offers Discount in Ramadan

Offers both retail and wholesale item

Mohsin Store

Khurram Store

Qazi store


Big Picture
Retail stores business is emerging as one of the good business ventures in Pakistan as
it provides all the basic merchandise. In late eighties a shift in grocery store occurred. This
sector has shown a significant growth over the last few years. In 2005-2006 this sector
showed a growth of 9.9%.

Contribution to Economy
Although in Pakistan the retail business is not providing employment at a large scale
directly, but indirectly it is contributing in the employment growth. As more and more retail
outlets are opening and consumer buying has shifted towards packaged/branded products.
Companies are coming with top quality products and with the increase in production level the
employment also increases.
Following is the detail of equipment required for this project.



and Computer

& Racks and shelves


No. of Units

deep freezers

Inventory Softwar


Total cost






Following figures are collected by surveying retailers and are helpful for our start-up,
it provides quick quantitative review of different aspects of retail store business
1: Sales Price Increase 7%
2: Increase in Cost of Sales 10 %
3: Increase in Staff Salaries 10 %
4: Per year Increase in Utilities 10 %
5: Per year Increase in Rent 10 %
6: Per year Increase in Office Expenses 10 % yearly
7: Carriage Van Depreciation 10 % per annum
8: Bad Debts 3% of Sales

15. Projected Income Statement for First quarter of start up

Estimated Sales revenue for 3 months.Rs/=700,000

Estimated Cost of Goods sold.400, 000
Gross Profit.Rs/= 3,00, 000
Operating Expenses
Salaries Rs/= 40000
Shop Rent.Rs/=12000
Total Operating ExpensesRs/=70,000
Expected Net Profit..Rs/=270,000

16. Projected Balance Sheet for 3months



Liabilities & Owners Equity




Accounts Payables



Interest Payable




Accrued Expenses


Reserve Cash


Total Liabilities

Inventory Purchased


Owners Equity


Total Assets


Total Liabilities and Equities