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 Home’s 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 home’s Hardware will also focus on anticipating the seasonal needs of its customers and providing the best products at competitive prices. Most importantly, Complete home’s 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 can’t 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 home’s 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 Home’s Hardware is located in Chunchura town near Edwardian Clock Tower. The foot traffic in the tower is very strong. The tower’s primary tenants are the area’s successful supermarket, drug store, and appliance store. Edwardian Clock Tower has easy access points on both of the area’s 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 home’s 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 home’s 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 area’s customers.
Fall/Winter: Weatherization projects.
Spring: Garden/lawn projects/home improvement projects.
Summer: Outdoor building projects.
Complete home’s 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 home’s Hardware will stock traditional retail hardware items. The product mix will be changed slightly from suburban stores. Complete Home’s 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 Home’s 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 home’s Hardware can’t 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 home’s 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 home’s 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 home’s 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 customer’s seasonal hardware needs and offer it at competitive prices
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Sales Forecast
The goal of Complete home’s 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 home’s 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 home’s Hardware have staff that understand customer service and how to treat customers so that they want to shop in the Complete home’s Hardware environment.
Operational Plan
Management Summary
Gurpreet singh is a excellent staff supervisor and will do very well in managing the staff of Complete home’s Hardware.
Personnel Plan
Complete home’s 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 publicity&advertisent 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
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
New Current Borrowing
New Other Liabilities (interest-free)
New Long-term Liabilities
Sales of Other Current Assets
Sales of Long-term Assets
New Investment Received
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
Principal Repayment of Current Borrowing
Other Liabilities Principal Repayment
Long-term Liabilities Principal Repayment
30,000
Purchase Other Current Assets
Purchase Long-term Assets
Dividends
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
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
Other Current Liabilities
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/