INTRODUCTION

For as long as people still use automobile on our roads, the need for auto spare parts will
continue to be in high demand. Auto spare parts business is no doubt a profitable business
because the replacement of damaged or worn – out auto parts is compulsory if you want your
vehicle to continue to be on the road and serve the purpose you bought it for.

It is important to point out that auto spare parts business is one of the businesses that can’t go
out of fashion and this is simply because of the role it plays in the auto industry. Depending on
the scale we want to start, the startup capital for this type of business can be considered to be
moderate. As a matter of fact, we can start our own auto spare parts store and then grow it big
within a short period of time by re-investing your profits back to the business.

SIGNIFICANCE OF BUSINESS PLAN

 An opportunity to test out a new idea

 Hire new people

 Develop new business alliances

 Sell your business

 Attract Financing

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 VISION, MISSION, GOAL & OBJECTIVE

VISION

Our vision is to become of the leading brands in the auto-spare parts & accessories stores and
to establish a one stop point of auto-spare parts &accessories.

MISSION

Our mission is to establish a world class auto-spare parts & accessories store business that will
make available a wide range of all type of auto-spare parts & accessories.

GOAL

 To supply the best quality products.

 To deliver on time as described with 100% satisfaction.
 To build image among general public.
 Optimum utilization of fixed cost related expenses.
 To expand the business in other cities

OBJECTIVES

 Profit maximization
 To increase the sales.
 To create a brand image.
 Develop the business.

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 INDUSTRY OVERVIEW

 The Indian retail industry has emerged as one of the most dynamic and fast-paced
industries due to the entry of several new players. It accounts for over 10 per cent of
the country’s Gross Domestic Product (GDP) and around 8 per cent of the employment.
India is the world’s fifth-largest global destination in the retail space.

 Indian Retail Industry has immense potential as India has the second largest population
with affluent middle class, rapid urbanization and solid growth of internet.

 India’s retail market is expected to grow at a Compound Annual Growth Rate (CAGR)
of 10 per cent to US$ 1.6 trillion by 2026 from US$ 641 billion in 2016.

 India has replaced China as the most promising markets for retail expansion, supported
by expanding economy, coupled with booming consumption rates, urbanizing
population and growing middle class.

 India is expected to become the world’s fastest growing e-commerce market, driven by
robust investment in the sector and rapid increase in the number of internet users.

 Indian exports of locally made retail and lifestyle products grew at a CAGR of 10 per
cent from 2013 to 2016.

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 IDENTIFICATION OF BUSINESS PROJECT ON THE BASIS OF
MARKET ANALYSIS, CONSUMER ANALYSIS AND SWOT
ANALYSIS

IDEAS GENERATION

For as long as people still use automobile on our roads, the need for auto spare parts will
continue to be in high demand. Auto spare parts business is no doubt a profitable business
because the replacement of damaged or worn – out auto parts is compulsory if you want your
vehicle to continue to be on the road and serve the purpose you bought it for.

Most of the people faces problems related to auto spare parts. They didn’t find right products
to their vehicles. Actually I also faced problem when we go to the stores either we find duplicate
product or the product is still unavailable.

MARKET ANALYSIS AND CONSUMER ANALYSIS

MARKET ANALYSIS

Automotive components, spare parts, auto parts, car parts, replacement parts, tractor parts,
motorcycle parts, auto body parts, two wheeler, three wheeler and four wheeler parts and
accessories.

CONSUMER ANALYSIS

A survey among 20 persons has been done (friends) & among them 14(70%) of them were
satisfied with my business plan whereas 6 (30%) of them were not satisfied with my business
plan.

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 PESTEL ANALYSIS

POLITICAL

 Tax policies
 Safety regulation
 Employment laws
 Political stability

ECONOMIC

 Economic growth
 Unemployment policies
 Taxation

SOCIAL

 Income distribution
 Demographic, population, age distribution
 Life style
 Education
 Living condition

TECHNOLOGICAL

 New invention and development

 Rate of technology transfer
 Life cycle and speed of technology obsolescence

ENVIRONMENTAL

 Green rating
 Star rating scheme
 Energy Efficiency & Cost Savings
 Carbon Market
 Clean Production

LEGAL

 Obtain PAN Number from Income Tax Dept.

 Shop & Establishment Act

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 SWOT ANALYSIS

STRENGTH

S.No. Strength Strong Very Neutral Weak Very Significance

(+) Strong (0) (-) Weak (+ or 0 or -)
(++) (--)
1 Personal competencies + 0

2 core area knowledge _ +

3 family support ++ +

4 good reputation 0 +

5 well-situated premises + _

6 sound economy _ +

7 good relationship with + 0

the bank

8 special organization 0 0

9 partners 0 +

10 business concept 0 +

11 high turnover + +

12 high gross profit + +

13 product /service line + +

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S.No. Strength Strong Very Neutral Weak Very Significance
(+) Strong (0) (-) Weak (+ or 0 or -)
(++) (--)

14 alternative 0 0
products/services

15 novel products 0 +
(USP/UMP)

16 advanced technology ++ +

17 unique marketing 0 0

18 channel of distribution + +

19 Pricing + +

20 Product /Service Life ( + +

Perishable /
Imperishable)

21 Product Life Cycle + +

22 Promotion 0 +

23 Product Image + +

24 Raw Material NA

25 Production Facilities NA

26 Cost of Production NA

27 Product Technology NA

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S.No. Strength Strong Very Neutral Weak Very Significance
(+) Strong (0) (-) Weak (+ or 0 or -)
(++) (--)

28 Inventory 0 +

29 Capital Structure + +

30 Liquidity - +

31 Credit Terms __ +

32 Profitability 0 +

33 Tax Planning _ +

34 Quality of Employees + +

35 Personnel & _ +
Industrial Relations

36 Commitment of + +
Employees

37 Management _ +
Capability

38 Skill and Experience _ 0

39 Attitude towards 0 +
exploitations of
opportunity
40 Avoidance of Threat _ _

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WEAKNESS

S.No Weakness Strong Very Neutral Weak Very Significance

(+) Strong (0) (-) Weak (+ or 0 or -)
(++) (--)
1 Personal qualities + +

2 lack of core area 0 -

knowledge

3 family doesn’t __ +
support

4 bad reputation _ +

5 adverse location _ _

6 bad economy 0 0

7 Less support from _ _

bankers

8 special organization 0 0

9 cooperation partners 0 0

10 business concept + +

11 proceeds 0 +

12 turnover _ +

13 alternative + +
products/services
14 outdated products _ _

15 obsolete technology _ 0

16 no marketing + +

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OPPORTUNITIES

S.No Opportunities Strong Very Neutral Weak Very Significance

(+) Strong (0) (-) Weak (+ or 0 or -)
(++) (--)

1 New customer groups + +

move to your area

2 increased purchasing ++ +
power

3 high birth rates ++ +

4 expansion of public 0 0
institutions

5 new trends 0 +

6 advanced technology + +

7 dying competition ++ +

8 capital infusion 0 +

9 timing ++ +

10 network + +

11 grants/ subsidies 0 0

12 supplier´s credit + +

13 swift market + +
penetration
14 new legislation - -

15 progress + +

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THREATS

S.No Threats Strong Very Neutral Weak Very Significance

(+) Strong (0) (-) Weak (+ or 0 or -)
(++) (--)

1 Customers moving or 0 +
go bankrupt

2 weakened purchasing + +
power

3 low birth rates + +

4 building freeze 0 0

5 new trends -- 0

6 New technology -- +

7 new competition ++ +

8 timing + +

9 Network disintegrate ++ +

10 grants/ subsidies 0 0

11 supplier restrictions ++ +

12 new legislation + +

13 a country goes + +
bankrupt
You Need To Answer

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 DETAILS OF THE FIRM

NAME OF THE FIRM

“Dev Retail Shop”

CORE BUSINESS

Providing services

PRODUCTS & SERVICES

Selling auto spare parts and accessories & also distributing auto spare parts.

BRAND /SUB BRANDS

“One-Stop Shop”

REGISTRATION OF BRAND

My firm would have to do registration under “Registrar of Trade Mark”

CORE COMPETENCE

We offer our customer different variety of products at one place where customer can get all the
required products at affordable price and in very less time. The products will be 100 % genuine.
We offer different option for making payment like payment through credit card, debit card and
cash on delivery.

FUTURE DIVERSIFICATION PROSPECTS

Opening other Dev Retail Shop branches in other cities.

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 SEGMENTATION STRATEGY

GEOGRAPHIC

Mirzapur (Rural Areas)

DEMOGRAPHIC

 Age -: Above 16
 Family Size -: All type of family
 Gender -: All gender
 Income -: Universal
 Occupation -: Universal
 Education -: Universal

PSYCHOGRAPHIC

 Lifestyle-: Any type of People

 Personality-: All type of people

BEHAVIORAL

 Occasion-: Doesn’t affect our sales

 User Status-: It also affect the business
 Loyalty Status-: Affect the business

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 TARGETING STRATEGY

Almost every automobile owner would have one reason or the other to purchase automobile
parts and accessories. Such as-

 Vehicle owners
 Auto repair, maintenance and servicing garages
 Transport companies

POSITIONING STRATEGY

 Position our banners at strategic places & print the advertisement back at the public
transport, walls etc.
 Ensure that we have a wide range of accessories and auto spare parts from different
brands at all times.
 Create a loyalty plan that will enable us reward our regular customers
 Encourage the use of word of mouth marketing (referrals)
 Contact vehicle owners, auto repair, maintenance and servicing garages, transport
companies by calling them up and informing them.

TYPE OF BUSINESS ORGANIZATION

Sole proprietorship

BACKGROUND OF THE PROMOTERS

 Educational Background-: Graduate

 Any Industrial Experience-: No
 Family Background-: Business
 Sources Of Income-: Nil

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 MANAGEMENT AND ORGANIZATION SET UP

Dev Sen Singh will responsible for all major activities, daily operations, and also managing all
other employees. Such as-

CHIEF EXECUTIVE OFFICER – CEO:

 Responsible for fixing prices and signing business deals

 Responsible for providing direction for the business
 Responsible for signing checks and documents on behalf of the company

STORE MANAGER:

 Responsible for managing the daily activities in the store.

 Ensures that proper records of accessories and auto spare parts are kept and the
warehouse does not run out of products.
 Ensures that the store facility is in tip top shape and goods are properly arranged and
easy to locate.


ACCOUNTANT / CASHIER:

 Performs cash management

 Ensures compliance with taxation legislation
 Handles all financial transactions for the organization
 Serves as internal auditor for the organization

Sales and marketing is done by another employee.

One person will be kept for the firm at cleaner’s position.

 For cleaning all the goods and the store facility at all times.
 Cleans both the interior and exterior of the store facility
 Handle any other duty.

I will be given salary on monthly basis.

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QUALIFICATION:

 I am doing post-graduation.
 Good in speaking and managing all business activities and also managing the
customers.
 I have good leadership skill.

EXPERIENCE:

 I have no experience

PLANT LOCATION & RATIONALE BEHIND IT

LOCATION

Mirzapur (Urban Areas)

IMPORTANCE

 less stores of spare parts

 less competitors
 people suffer in getting the genuine parts

FACILITIES OF BUSINESS

INFRASTRUCTURE

Two rooms, one ware houses

MACHINERIES & EQUIPMENT'S

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Shelves such as-:

 Gondola Shelving

 Wide Span Shelving

 Grid wall Displays

 Security System
 Website
 Stickers
 Table & Chairs
 Hand Pallet Truck

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  Warehouse Shelving
 Cleaning items
 Fans
 Lights
 Switch's
 Papers
 Pricing Gun
 Bags
 Receipt Paper or Printer
 Banners or Flags
 Desktop

FACILITY/PLANT LAYOUT

 Grid Floor Plans

RAW MATERIAL

No raw material are used.

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PACKING MATERIAL

WAREHOUSING

Store all type of products in warehouses in proper manner by installing Shelving.

LOGISTIC

I can used four-wheeler vehicle to supply the auto spare parts and accessories to the
maintenance and servicing garages and other customers.

LABOUR

The total workforce of 4 men is specialize in various activities will be hired. Two delivery boy
having proper knowledge of various routes of Mirzapur and experience of driving will be hired.
One person will be work within the organization & one will work in sales and marketing areas.

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LEGAL REQUIREMENTS FULFILLMENT

These services will be registered under companies law act and follow all the rules and
regulations of the act.

SUPPLY CHAIN MANAGEMENT

ECONOMIES OF SCALE

The economies of scale will be increasing returns to scale where we will invest Rs. 6, 00,000
and expect profit level of that much which helps in continuing the business and marginal profit
of Approx. 10%. We expect high growth rate in the short period because it helps in making
good credibility among the customer.

PRODUCTION PLANNING & SCHEDULING

There is no production planning and scheduling.

QUALITY MANAGEMENT SYSTEM

I can check the quality of the products whether the product is genuine or not.

STANDARD OPERATING PROCEDURE & FLOW CHART

No Operating Procedure & Flow Chart

JOB DESIGN & ERGONOMICS

Not applicable

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PROCESS DESIGN

Not applicable

ENVIRONMENT PROTECTION

Environment are not harmed

INVENTORY MANAGEMENT

 FIFO
 LIFO

MARKETING AND SALES STRATEGY

PRODUCTS & SERVICES

 Selling auto spare parts and accessories

 Distributing auto spare parts and accessories

PLC ANALYSIS

All the products are well aware to the customers so they are at Growth stage.

BRAND

Not available

PRODUCTS & SERVICES MIX

Nil

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QUALITY

Provide best quality and 100% genuine products to the customers.

DESIGN

Not applicable

FEATURES

Most of the customers know about the features of the products.

PACKAGING

Best quality packaging is assured to reduce risk from damage and maintain its quality.

STOCK KEEPING UNITS

Stock keeping unit are used because in warehouse there are different products of different
brands, colors, model etc.

SERVICES

 On-time delivery, various modes of payments

 Damage product return easily

WARRANTIES

It is given on the basis of the product and brands.

RETURNING POLICY

The damage product will be return/exchange within 2-3 days.

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INNOVATION EFFECTIVENESS

Not applicable

WEBSITE NAVIGATION

Yes, it is applicable

PRICING STRATEGY

 At best prices and good quality of all the auto parts and accessories are available in our
store.
 Our pricing strategy will vary with the customers on the basis of amount of order.
 Our payment mode will be online banking, debit card, credit card & cash on delivery
which is more secured payment mode in today's era and safe.

PLACE STRATEGY

 suppliers make deliveries conveniently at this location

 the area served by public transportation
 the population density of the area is high
 the lease terms and rent favorable
 Traffic flow
 Number and size of competition is less
 The demand for accessories and auto spare parts in the location
 The number of automobile owners and the purchasing power of the residents of the
location

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 PROMOTIONAL STRATEGY

SALES PROMOTION

 Loyal Reward Program

 Price-pack/Bonus packs deal
 Coupons

ADVERTISING

 Print the advertisement back to the transport, walls etc.

 Install our Billboards in strategic locations all around your city or state
 All our staff members wear our branded shirts and all our vehicles and vans are well
branded with our company logo.

PUBLIC RELATIONS

Use of word of mouth publicity from our loyal customers

DIRECT MARKETING

 Catalogs
 Internet marketing

SOCIAL MEDIA STRATEGY

Using the internet and social media platforms

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 PEOPLE STRATEGY

SALES FORCE OBJECTIVE

To provide the customer orders on time and record their feedback.

SALES FORCE STRUCTURE

Not applicable

SALES FORCE SIZE

2 person

SALES FORCE ORGANIZATION

Not applicable

PROCESSES (SALES OPERATION)

ORDER PROCESSING

Through website and phone calls

WAREHOUSING

Store the products in the warehouse in proper manner

INVENTORY

Stock of different auto spare parts and accessories in warehouse

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TRANSPORTATION

Used 1 four wheeler vehicle to distribute the products

SALES FORECAST

One thing is certain when it comes to accessories and auto spare parts retail stores, if our store
is well stocked with various types of accessories and auto spare parts and centrally positioned,
give 100% genuine product and delivery on time, These things will attract customers cum sales
and that will sure translate to increase in revenue generation for the business.

CUSTOMER RELATIONSHIP MANAGEMENT POLICY

SATISFACTION

 Give 100% genuine product

 On time delivery

RETENTION

 Thank you notes, thank you gifts for onboarding new clients
 Discounts to your most loyal customers

LOYALTY

 Discounts
 Cash back
 Points
 Free gifts
 Flexible return policies

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 HUMAN RESOURCE

JOB ANALYSIS OF DUTIES & RESPONSIBILITIES

4 person will be hire

ORGANIZATIONAL STRUCTURE

No specific structure

ORGANIZATIONAL CULTURE

Not as such

MANPOWER PLANNING

 1 person will be operate within or outside organization

 1 person will operate sales and marketing areas.
 2 person will operate outside organization handle the distribution channel

RECRUITMENT (SOURCE, JOB DESCRIPTION & SPECIFICATION)

External (Reference)

SELECTION

Interview

PLACEMENT

Training

INDUCTION & ORIENTATION

NA

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 FINANCIAL PLANNING

SOURCES OF FUND

OWNER CAPITAL (7, 00,000)

PROJECTED EXPENSES

PARTICULARS ST ND RD
1 YEAR 2 YEAR 3 YEAR

Website developer 25,000 10,000 10,000

and maintenance

Advertising expanses 1,00,000 1,25,000 1,20,000

Salary 1,50,000 1,80,000 1,80,000

Laptop and other 95,000 15,000 10,000

equipment's

Internet 5,000 7,000 9,000

Building, warehouses, 3,50,000 3,80,000 4,11,000

products, repair and
others expenses

Total 7,00,000 7,17,000 7,40,000

FUTURE SCALABILITY

I will expend my business into the national level.

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