Assemble2o

Assemble2o bangalore, karnataka. 562130

Table of Contents Executive Summary.............................................................................................................2 1.1. Objectives.................................................................................................................4 1.2. Mission......................................................................................................................4 1.3. Keys to Success.........................................................................................................4 Company Summary.............................................................................................................4 Products................................................................................................................................4 Market Analysis Summary..................................................................................................6 1.4. Target Market Segment Strategy..............................................................................6 1.5. Industry Analysis......................................................................................................6 1.5.1. Competition and Buying Patterns......................................................................7 Strategy and Implementation Summary...............................................................................8 1.6. Competitive Edge......................................................................................................8 1.7. Marketing Strategy....................................................................................................8 Web Plan Summary.............................................................................................................9 1.8. Website Marketing Strategy.....................................................................................9 1.9. Development Requirements....................................................................................10 Financial Plan.....................................................................................................................10

Appendix Executive Summary Assemble2o is an online retailer of computer hardware that includes the likes of motherboards, processor, harddisks and other peripherals. The aim is to sell computer hardware to retail customers at affordable prices and Assemble2o will also provide assembly services for new computers specifically for the customers who wants to assemble there new PC's using its website. The Concept Recognizing that the market for Desktop PC's and Notebooks is fast growing , Assemble2o will provide the option for the customers to truly customize there PC's by individually selecting each of the required parts from Assemble2o website with assistance from specialists of Assemble2o. Assemble2o would be based in bangalore by leavearging its location in silicon city Assemble2o will be able to cater to the varied demands customers through out India. Assemle2o would go into partnership with a known logistic service provider so as to ensure timely and safe delivery of goods. Assemble2o as mentioned above would also assist customers in assembling there PC's and the assembled PC's would be delivered to the customer at there door step. The Sales Stratergy Assemble2o being an online store would solely depend on the sales from its website; the trick would be to increase the customers awareness about Assemble2o through extensive promotion through local media, print and radio; specifically in bangalore since the aim is to expand first in Bangalore and then expand the awareness to other cities within India.

Industry Analysis Computer hardware components are fixed parts that make up a personal computer, on which software and operating systems are installed. Mass-market consumer computers use highly homogeneous components that are simple for end users to assemble without assistance. Standard desktop computers contain the following hardware components: a power supply, motherboard, and hard disk. Monitors, keyboards, and mice are external hardware devices that also connect to personal computers. The competition among computer hardware companies is particularly intense. On the one hand, in the traditional PC market, companies' products have largely become commodified, with constant downward price pressure (and narrowing profit margins)

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Appendix being the result. On the other hand, there are markets for innovative new products, like tablet PCs and ultra-minimal desktops, that are not yet fully commodified. Here, the race is on to develop products at breakneck speed so you can be first to market. And if a company falters, it instantly becomes a target for larger companies looking to acquire new businesses. No doubt about it: Computer hardware is a cutthroat business. There are definite geographic concentrations in the hardware industry despite its worldwide reach. It's often noted that high-tech companies are usually located near colleges and universities, and there's a good deal of truth to that, as many companies come out of research done at such institutions. Silicon Valley is near San Jose State, the University of California at Berkeley, and Stanford University. Route 128 is near the educational mecca of Cambridge, Massachusetts. Research Triangle in North Carolina and the area around Austin, Texas, are also good examples. Still, there are other places within North America where you'll find major hardware companies; for example, Gateway is in North Dakota. Most major corporations in computer hardware reach across national borders. International sales normally account for a large percentage of most hardware companies' bottom lines, and India, Japan, China, and other Asian locations are hotbeds of hardware manufacture and design. Smaller and Smaller As advancing technology makes it cost-effective to make more complex chips in increasingly compact sizes, computer hardware makers can bring smaller and smaller devices to market. Think flat computer display screens. Think ever-thinner, ever-lighter laptop computers. And so on. Outsourcing In the hardware world as elsewhere in business, an increasing number of manufacturers are outsourcing product and component development and manufacturing overseas. Some companies are only doing top-level design in the United States, leaving production and more basic design tasks to cheaper labor in the Philippines, China, and elsewhere. What this means is that product managers and project heads may have to travel a lot more than in previous generations; it also means that many North Americabased jobs are being lost. Increasingly, the task of American PC companies is to be expert in marketing and distribution while simply outsourcing manufacturing and portions of the design work. Still, observers point out that there should continue to be plenty of jobs in this sector in the U.S. for techies with top-notch skills.

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Appendix 1.1. Objectives To put in place adequate, reliable and satisfying retail machinery to meet the needs of the customer. To improve the reliability and timeliness of shipments to the customer. To create a shopping environment that caters to the technological needs of the fellow computer enthusiast .

1.2.

Mission Assemble2o's mission is to supply certain market niches for computer parts and other items which are, mostly served by unorganised local retailers.

1.3.

Keys to Success Offering items of a high quality-value relationship which are not available everywhere. On time and reliable delivery of the shipment to the customer.

Company Summary Assemble2o caters to the needs of that niche of computer enthusiasts who need custom parts for there computers; PC and laptops. Rather than just providing a whole assembled computer; Assemble2o will also provide parts for the computers. Products The Assemble2o sells a variety of quality discount merchandise. The types of merchandise we will carry will include items such as computer motherboards, processors, accessories and a list of items too exhaustive to list here. A dedicated staff is committed to providing excellent customer service.

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Appendix The merchandise is purchased from a variety of well-known manufacturers such as Dell, Intel, iMicra as well as a number of other generic branded companies. Shipments arrive on a daily basis. We will continue to find new product lines that can be added to our inventory. We are able to sell products at very low prices, because we will purchase items from discontinued lines, seconds, over runs, etc., that cannot be sold to a manufacturer's usual retail customers.

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Appendix Market Analysis Summary The overall India PC market sales (shipments) touched 19.7 lakh units in the October-December 2009 quarter, recording a 25.7 % year-on-year growth pointing to a strengthening recovery, according to market researcher IDC. Desktop PC sales accounted for nearly two-thirds of total PC sales at 12.7 lakh units, representing a 14.6 % increase year-onyear. The Notebook PC sales grew at 52.8 % year-on-year (4Q CY09 over 4Q CY08) clocking 6.9 lakh units in Oct-Dec 2009. The desktop PCs recorded sales of 12.91 lakh units, representing a year-on-year growth of 14.6 %. Total India personal computer shipments have grown for the last four consecutive quarters of 2009 after dropping sharply from a peak of 22.6 lakh units in JulySeptember 2008 to 15.6 lakh units in October-December 2008. The statistics show an oncreasing trend in the PC market be it desktops or Notebooks; Assemle2o would take the oppurtunity to strengthen and expand ts business and would cater to anyone who wants to buy a new PC or upgrade a new one. More specifically we would concentrate on those consumers who want there computers assembled and designed in accordance with there preferences.

1.4.

Target Market Segment Strategy Due to the limited resources available to Assemble2o, the company will avoid the bulk orders segments that it cannot profitably reach. By specifically focusing its marketing efforts on the underserved segments of reatil computer hardware market for retail customers , Assemble2o will slowly diversify its customer base. Establishing realationships with manufacturers of high end computer hardware will help the company to to expand its domain into niche products.

1.5.

Industry Analysis The computer hardware retail market consists of two types of retailers namely 1. Local Retailers These are locally available retail outlets catering to the needs of local customer population in and around them. These pose a greater threat than the online company specific retail stores since customers prefer the local outlet rather than the ones online.

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Appendix 2. Compay specific These stores are locally present but only contain proucts of a specific company ; these are usually present online and as retail stores in the locality.

1.5.1. Competition and Buying Patterns The retail customer tends to depend on the reputation of the company as far as products are concerned. But in case of reatilers who provide these products they prefer local stores over online ones. Most of the customers prefer reputed and usually company specific online stores.The retail customers want good quality products at afforadble prices and as fast as possible and preferably on the same day. This becomes a challenge ; we would need to have an effctive distribution mechanism in place so as to meet customers expectations. There is no doubt that we compete much more against all the local retail stores than against other similar online service providers. The trick would be to create awareness among the customer about Assemble2o and effectively meet there expectations to create a healthy reputation.

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Appendix Strategy and Implementation Summary Sales of personal computers in Oct-Dec grew by 2.49 million units, a 26% jump compared with the previous year. Sales of desktop computers, which accounted for about 58% of the total PC sales during Oct-Dec, rose 14% to 1.27 million units. Notebook computer sales surged 49% to 700,000 units. The above said statistics clearly show the growth trend in the computer industry with more and more people being computer literate; they want there computers to be truly personnal. We find that potential customers would rather have there needed parts deivered to there door step than browsing through the local market for the same albeit in minimum time. We assume that this would drive our sales with some promotion and customer awareness.

1.6.

Competitive Edge The Assemble2o looks to establish itself competitively as a unique retail environment through its product offering, the scope and level of services it provides, and the expertise of its employees. PRODUCTS: Sourced through established manufacturers , the products offered by Assemble2o will provide a high level of quality and value to the consumer. The range of products will be vast, with little crossover to other retailers within the local markets. SERVICES: Connecting with the customer is a key focus for Assemble2o. Through personalized design servicesgift registry, realtor programs, gift certificates, gift wrap and preferred customer recognition programs, Assemble2o will provide a level of personalization not commonly found in today's hectic, mass market. It is our desire that customers look to us as their valued resource to achieve a personalized home environment.

1.7.

Marketing Strategy In addition to price and item promotional announcements, Assemble2o will focus its marketing efforts via several key directto-consumer advertising vehicles: Local and Regional Magazine Publications: Each of these advertising vehicles provides a demographic base that lines up nicely with that of The Scarlet Tassel.

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Appendix Direct Mail Postcards: The Assemble2o will look to increase consumer awareness, retain the existing customer base and promote increased sales via seasonal postcard mailings. These mailings will be targeted around special events and are intended to liquidate slow moving products or showcase vendor negotiated specials like

Diwali Open House--15% to 20% savings opportunity. New year extreme--15% to 20% savings opportunity. Annual Anniversary Postcard--promotes in-store design seminars, special events and savings opportunities.

Website Marketing: As we establish our e-commerce business segment , we will support the business via search engine marketing, banner advertising, URL links and e-mail marketing on all correspondence. This channel of business will increase the customer base, sales potential and service opportunities provided by Assemb le2o.

Web Plan Summary As an online computer hardware store the website will be essential for Assemble2o's success. Assemble2o's website www.Assemble2o.com would be the primary channel of business serving as virtual business card and portfolio for the company, as well as its online "home." The website will showcase the products offers available for the day and the related products ; along with the recently sold list. It would cotain a search option available for each class of products and a unified search with it. The Assemble2o website will provide a resources area, offering articles, research, product information, latest trends a new releases and website links of interest to its customers. The key to the website strategy will be combining a well designed front-end, with a back-end capable of capturing "hits" and customer data for use in future marketing endeavors.

1.8.

Website Marketing Strategy Market strategy in an Internet retail business depends on recognition of expertise by the consumer. For Assemble2o, it will start with our existing brick-and-mortar store customer base, informing them of our Internet presence and encouraging their word-of-mouth recommendations to others. Further awareness will be heightened by utilizing search engine marketing, banner advertising, and affiliates.

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Appendix 1.9. Development Requirements Costs that Assemble2o will expect to incur with development of its website include: Development Costs

Internet Engine - Rs 1500. Site Design - Rs 2700. Site Implementation - Free. Product Catalogue- Rs 12,000

Ongoing Costs Website name registration for both www.Assemble2o.com - Rs 500 per year. Site Hosting - Rs1500 or less per month. Site Design Changes - Changes in the site, such as photography costs (estimated at $150-$200 per shot), are considered to be part of Marketing and Advertising.

Financial Plan Assemble2o being a new company sales in the initial months would be slow and less than expected but as tie progresses ad customer awareness increase the sales are bound to increase.

Growth will be moderate, cash balance always positive. Marketing will remain at or below 15% of sales. The company will invest residual profits into company expansion and personnel.

The most important element in the financial plan is the critical need for improving several of the key factors that impact cash flow: 1. We must at any cost stop the slide in inventory turnover and develop better inventory management to bring the turnover up to 6 turns by the third year. This should also be a function of the shift in focus towards service revenues to add to the hardware revenues. Important Assumptions The financial plan depends on important assumptions, most of which are shown in The key underlying assumptions are: Page 10

Appendix 1. We assume a slow-growth economy, without major recession. 2. We assume of course that there are no unforeseen changes in technology to make products immediately obsolete. Assemble2o being a new company sales in the initial months would be slow and less than expected but as tie progresses ad customer awareness increase the sales are bound to increase.

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