Retail Management On Hardware Store Information Technology Essay

Retail Management On Hardware Store Information Technology Essay My term paper is to open up the retail store of the HARDWARE GOODS. The name of my store is COMPLETE HOME. This store to be contains the number of variety and assortment of the hardware goods. My retail store COMPLETE HOME to be contain the Binding wire, Paint, Putty, Cement, Wood Varnish, Door Handle, Lock, Fevicol, Polish, Primer, Needle, Ply wood, Screw, Nut Bolt etc In general description I can choose the type of store which open in the market and also made mission goals and objectives of the retail stores. Hardware stores, sell household hardware including: fasteners, hand tools, power tools, keys, locks, hinges, chains, plumbing supplies, electrical supplies, cleaning products, house wares, tools, paint, and lawn and garden products directly to consumers for use at home or for business. Home Hardware consists of four separate banners, offering goods such as the following: Home Hardware house wares, tools, paint, garden supplies Home Building Centre lumber, plumbing and electrical supplies, building materials Home Hardware Building Centre full range of Home Hardware and Home Building Centre items Home Furniture furniture and major appliances Business Mission The mission of Complete Homes Hardware is to offer quality  hardware products in a customer-friendly shopping environment. Our customers will get assistance quickly and will leave the store prepared to get the job done right the first time. Complete homes Hardware will also focus on anticipating the seasonal needs of its customers and providing the best products at competitive prices.   Most importantly, Complete homes Hardware will make the additional 15 minute drive to a mega-hardware store, too far to go and too expensive to entertain. INDUSTRY ANALYSIS Market -In Indian retail sector rapid growth in sales from Hardware stores. Sales from Hardware stores are set to expand at growth rates ranging from 37% to 57% during year 2003-2008. Customer- This customer group can have the most frustrating experience in the hardware stores. If they cant make the scheduled demos or trainings, they are left to sort thing out with whoever they can flag down in the store help them. Complete homes Hardware will be set-up to provide resources and assistance as soon as they walk into the store. Technology- Today more technology used in the hardware stores. There are some obvious area and some hidden areas where cost can be pruned and the benefit of this lower cost of retailing can be passed on to the customer as lower prices, which in turned should fuel demand. Competitors- At present time in India market there is more competitor who give competition to each other. Keys to Success Location:   Complete Homes Hardware is located in  Chunchura town near Edwardian Clock Tower.   The foot traffic in the tower is very strong.   The towers primary tenants are the areas successful supermarket, drug store, and appliance store.   Edwardian Clock Tower has easy access points on both of the areas major cross streets and is the biggest shopping center in  tower residential area. The closest hardware store to the clock tower area is a 45 minute drive. Seasonal Products: Each season has it own unique demand on a homeowner.   Complete homes Hardware will focus on this pattern and bring in local customers by marketing these items at competitive prices. Repair/Project Resource Area: The first section customers will find when they enter is a repair/project resource area that they can use to  plan repairs or projects.   There will be a repair/project resource person to answer questions and direct them to the  section of store where the needed products are.   In-Store Expertise: Store employees will be knowledgeable in home repairs/projects.   In addition, the repair/project resource area will be used to conduct short trainings and demonstrations in home repair and home projects. Products And Services of Complete Home Hardware Stores Complete homes Hardware offers the parts, material, and advice to tackle any home repair, as well as lawn care.  The primary focus will be to satisfy the seasonal needs of the areas customers. Fall/Winter: Weatherization projects. Spring: Garden/lawn projects/home improvement projects. Summer: Outdoor building projects. Complete homes Hardware will offer traditional retail hardware.   These products include electrical supplies, automotive, hardware, house wares, lawn and garden, building supplies, paint, plumbing, tools and rental.   There are other small services that will be offered including key cutting, glass cutting, and other small repairs.   C.H Hardware will work with Building Blocks to develop the right product mix.   The initial order of inventory will take into account the fact that this is an urban store and the product mix may contain different items than a suburban store.   Complete homes Hardware will stock traditional retail hardware items.   The product mix will be changed slightly from suburban stores.   Complete Homes Hardware will open the Tool Room Rentals store within the hardware store.   This is a program that will help cash flow as well as increase sales of rental accessories and support items.   Future Products and Services Complete Homes Hardware will listen to its customers to understand what other needs are not being met.   Those needs could include additional store locations in the future and an expansion of products and services offered at the current location.   There may be other businesses that can be offshoots of retail hardware that help service or provide convenience to C.H customers CREDIT SERVICE- We give services to the our customer in which one of the services is to be credit service means a customer can purchase product without pay cash but he/she will pay after some period of time. And this facility depends on the price of the product. DISCOUNTS discounts was also important factor for our store. Because many people want to good quality goods in low price so we also give discount on the product which helps to us in growing. Marketing Plan Now I open my Hardware store in Chunchura town because oldest cultural hubs of west Bengal so I can do survey to check the demand of my Hardware store in that area and we also need to check preference of consumer. Focus on Target Markets The goal is to have our customer base become  reliant on Complete home to  stock items and have solutions  for their needs.   The customers will soon understand the value of the relationship.   Each of the  market segments will have sales initiatives to focus on each group. Complete homes Hardware  cant just market and sell products and services; we must actually deliver as well.   We need to make sure we have the knowledge-intensive business and service-intensive business we claim to have.   This service has to be consistent and deliver what the customer is looking for. Complete homes Hardware will also place ads in the News paper.   The news continues to be a source of a good number of customers. TV9 kannda local  morning TV show goes on location to promote local businesses.   Radio can be used in many different ways,  radio remotes for the opening of the store.   Monthly west Magazine has already identified an issue, a follow up story is very appropriate.   The Monthly west covers new and significant businesses in west Bengal; Complete home feels this store will fit that description. Sales Strategy Complete homes Hardware  will be offering a  convenient solution which  all Chunchura residents need.   Customers will be introduced to C.H through targeted advertising, direct mail,  signage, and word of mouth.   C.H will also take advantage of all the Building Blocks programs that help create loyalty and awareness among the potential customers in the market.    The focus will be on property managers and all Chunchura town businesses to create an awareness of the store location and the fact that the store is a potential solution for retail hardware needs. The sale strategy of Complete homes Hardware is simple. First, create a shopping environment that will create confidence in the customer that he or she will get the needed material, part, or instructions to get the job done right the first time. Second, make the store easy to navigate, so customer can get in and out as quickly as possible. Third, know your customers seasonal hardware needs and offer it at competitive prices . Sales Forecast The goal of Complete homes Hardware will be to develop programs that take as much slack out of the sales as possible and get them in line with the rest of the sales year.   There is a 25% growth predicted for the second year of sales driven by awareness, growth in rentals and growth in commercial sales.   The immediate goal is to achieve  robust sales in the first year.   It is thought that double digit percentage total sales increases  can be achieved and maintained throughout the  five years of this  business plan. Sales Programs Building Blocks has loyalty programs like Building Blocks Rewards that Complete homes Hardware  will participate in.   This program has been developed to build a loyal following of customers that use the card for shopping benefits.   This program will allow these customers to shop  and  make it easy for them to pay for items on account Competitive Edge Location is the biggest key to this business.   There are no true competitors in our business in Chunchura town.   Our future customers have had to work harder to get the same or lesser service less conveniently.   We will be in their back yard and be easy to work with and have products they need.   Complete homes Hardware have staff that understand customer service and how to treat customers so that they want to shop in the Complete homes Hardware environment. Operational Plan Management Summary Gurpreet singh is a excellent staff supervisor and will do very well in managing the staff of Complete homes Hardware. Personnel Plan Complete homes Hardware will have the following staff members: Manager. Assistant Manager. Office Manager/Accountant. Checkers (full time and part time). Two Customer Assistants. Stockers (full time and part time). LAYOUT For opening the hardware store (COMPLETE HOME) for the effective and efficient layout must be based on the following consideration:- Selecting a layout while allows for complete presentation of the merchandise to the customer. A good layout encourages customer to move around the complete store and at times, make an unplanned purchase. Keeping this objective in mind, we have different entry and exit points for the store. We also striking the right balance between space used for displays and services areas so that the returns on the investment is maximized. We also designing the store needs of women, the elderly and disabled person who may visit the store, need to be taken into account and provided for. In our Hardware store also has to be designed keeping in mind the merchandise that we sell in the store and it also target audience. LOCATION So location of my department store in Chunchura town because oldest cultural hubs of west Bengal . Location of retail store is important aspect as customer point of view because location is the critical factor in consumer selection of store and whenever we opened a retail store than we have assumed the different factor which showed our retail store features like as: Demographic features(to know about the potential customer in that area, metropolitan statistical area) Competition(to know about the competitors and how they far from my retail store) Strategic fit(to must know about the life style of potential customer) Operating cost(different area have different cost) No. of small shops in that area Economy of scale MULTI CHANNEL DECISIONS COMPLETE HOME use the multi channel, These channel were used for selling the Hardware good. My Hardware retail use all three channels to interact with its customers. These are following STORE CHANNEL It is provide the browsing to the customers before purchasing of products It is also provided touching and feeling products opportunity to the customer Store channel to given advantage for the customer to get the product immediately after they buy it. INTERNET CHANNEL Our hardware retail provides the information to customer about which the hardware good are available in our retail store. These Internet channels also contain the all information about hardware good price. The benefit of Internet channel as compared with the other two channels is the vast number of consumers to purchase the product easily. RETAIL FORMAT In which I have included the different strategies which lead our business and used different competitive promotional planned which make our retail store attractive and effective. And these should be done according to these points; Nature of merchandise and services offered Pricing policy Advertising and promotion programs Store design and visual merchandising Customer services FINIANCIAL PLAN FOR OUR HARDWARE STORE In this project a huge funds is needed for the Building hardware store so then we can project that how much amount will be need, so it organized into six sections; 1) Cost of project-First step is to be estimate the cost of project and represents the total of all items of outlay associated with a project which are supported by long term funds. It is the sum of the outlays on the following: Land and Site development Buildings and civil works Miscellaneous fixed assets Pre-operative expenses 2) Means of Finance-after estimate cost of project the following means of finance are available: Share capital- there are two types of share capital A) Equity capital-represents the contribution made by the owners of the business B) Preference capital- represents the contribution made by preference shareholder Term Loans-In this project a huge funds is needed for the hardware store so in this way I take a secure loan from bank for this hardware store I secure my own property now which present market value is 3cr it is sufficient for the bank security to give me loan for my project. Miscellaneous source- A small portion of project finance also from miscellaneous source like unsecured loans, public deposits, and leasing and hire purchase finance. 3) Cost of production-The cost of production may also worked out. The major components of production are: Material cost Utilities cost Labour cost Factory overhead cost Profitability projections-The project profitability is good as I choose a profitable location in the heart of the city. My target is that to earn good profits in year. For this goal I really to do work hard and do many things like publicityadvertisent in this way people know about the new hardware store is open in the city. And also projected the profit and loss for the four years. Personnel Plan Year 1 Year 2 Manager 36,000 40,000 Assistant Manager 36,000 39,000 Office Manager/Bookkeeper 36,000 39,000 Checkers 32,400 35,500 Customer Assistants 60,000 68,000 Stockers 39,600 44,000 Other 0 0 Total People 9 9 Total Payroll 240,000 265,500 5) Projected cash flow statements- Then after project profit we also shows the movement of cash into and out of the firm and its net impact on the cash balance. So with this better financial planning, project evaluation and fund control. We also projected the cash flow statement Cash Received (RS IN LACS) Cash from Operations Cash Sales 964,000 Subtotal Cash from Operations 964,000 Additional Cash Received Sales Tax, VAT, HST/GST Received 0 New Current Borrowing 0 New Other Liabilities (interest-free) 0 New Long-term Liabilities 0 Sales of Other Current Assets 0 Sales of Long-term Assets 0 New Investment Received 0 Subtotal Cash Received 964,000 Expenditures Year 1 Expenditures from Operations Cash Spending 240,000 Bill Payments 648,662 Subtotal Spent on Operations 888,662 Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out 0 Principal Repayment of Current Borrowing 0 Other Liabilities Principal Repayment 0 Long-term Liabilities Principal Repayment 30,000 Purchase Other Current Assets 0 Purchase Long-term Assets 0 Dividends 0 Subtotal Cash Spent 918,662 Net Cash Flow 45,338 Cash Balance 166,338 Projected balance sheet- we also in the last projected our assets and liabilities of the business. With this we know about our financial strength. Projected balance sheet PARTICULAR OPENING BALANCE CLOSING BALANCE Assets Current Assets Cash 166,338 Inventory 46,200 Other Current Assets 0 Total Current Assets 212,538 Long-term Assets Long-term Assets 30,000 Accumulated Depreciation 4,284 Total Long-term Assets 25,716 Total Assets 238,254 Liabilities and Capital Year 1 Current Liabilities Accounts Payable 61,715 Current Borrowing 0 Other Current Liabilities 0 Subtotal Current Liabilities 61,715 Long-term Liabilities 120,000 Total Liabilities 181,715 Paid-in Capital 80,000 Retained Earnings (79,000) Earnings 55,539 Total Capital 56,539 Total Liabilities and Capital 238,254 Net Worth 56,539 CONCLUSION So after project all the things like market plan, operational plan and also financial plan then we all plan put into the action and control them so the work was going effectively and efficiently. As I select the take a loan from the banks and some fund collect by issue of securities so I have build a good Hardware store which become attractive. So my hardware store name is COMPLETE HOME which means complete your dream home. And we always aim to provide the good product and services to our consumer . REFRENCES www.businessplan.com http://www.bplans.com/hardware_retail_franchise_business_plan/financial_plan_fc.cfm http://www.scribd.com/doc/21040477/Retail-Formats http://www.indiahardwarestores.in/ BOOKS SWAPNA PRADHAN PRASANA CHANDRA