Gift Basket Business Plan



Executive Summary IntroductionGift Basket is a premier gift for the people. We are concentrating on making various kinds of gift baskets with high-quality items. We will offer different types of baskets to the customers such as, Chocolate basket, Birthday gift, Stationary products and other gift items. The customer will choose our basket which they need. In addition to having several baskets, we will also offer the option of a custom basket allowing the customer to choose the items themselves. We will sell our baskets to individuals. We also sell our gift baskets in a corporate level. In corporate level they use our basket for AGM or giving gift to their delicates. We sell our product in our brand store and door to door. We advertise our product by word-of-mouth referals and by internet. Some of our products will also displayed at our shop. MissionOur mission is to create the finest gift baskets. The business will be based on some retails products which are currently available in the market. This will be a home-based business. We supply our products door to door and it will be shown in our shop. Our Gift Basket will contain good quality Chocolates, Stationary items, jewelry items, cards, candles, cosmetics items, Mugs, flowers and other gift items etc. We also offer a custom basket which allows customers to pick items from a list and we will assemble the basket with?its custom products and other decorative items which the customer can select from our collections.1.3 ObjectivesThe objectives of our business include: To create a well known company and the primary goal is to exceed customer's expectations.To serve customer a better gift basket with quality products.To develop a sustainable home business, surviving off its own cash flow.To help people to choose right gifts for their dear ones.Increasing size of our shop in Dhaka and open other outlets in Dhaka city and some other cities.To sell more products in corporate level.Improving our brand images by selling good products.The Business Description The MarketThe selling of gift baskets is very "seasonal." More than half of the gift basket purchasing occurs during a wide variety of holidays and public occasions. Our competitive advantage will be based on two factors, low overhead which allows reasonable prices and customer will get some good and well known products together in a bundle or basket. Our sales strategy will be targeted at obtaining customers through word-of-mouth referrals. Customers will be able to place and order over the phone or via the Facebook fan page or via direct e-mail to us. The BusinessGift basket business will be a average profitable business. Our profit from this business will not be so high or low. It will be sold in average and reasonable price. Actually it is one kind of service business. We usually don’t produce any products. We will bought some good quality well known brand’s popular products and packed them together in a basket called “Gift Basket” So basically it is a service business with average margin profit.The ProductWe sell retail items?gift baskets. We offer various types of item’s basket. We Offer some different categories baskets. The Baskets categories are:Yummy ChocolateBirthday SurpriseWild LearnersBorn to FashionSpecial Baskets for special day Valentines dayFathers/Mothers/Friendship dayEid/Puja/Christmas/Buddho PurnimaCustom BasketYummy ChocolateIn this Category we offer three types of Chocolate basket for different customers, Little Souls, Wild Lovers and Choco Freak. Little Souls, basket is for childrens. This basket contains some small sizes chocolate, toy, Stickers/Tattooes. This will be the cheapest basket than others two baskets. Wild Lovers, we design this basket for lovers. A boy/girl can gift this basket to his/her girlfriend/boyfriend. It’s contains different types of various sizes chocolates. We plan to offer two red roses free in every purchase of Wild Lovers basket in Valentine’s Day eve. Choco Freak, basket contains various kinds of big and medium sizes chocolates. This will be expensive chocolate basket than others two baskets. Yummy chocolates price will be the same. The prices will not be changed. But it can be raise if the item’s price will increase. A Sample Product ListBirthday SurpriseIn this Category we offer two types of Birthday gift basket for male and female customers, Adam’s Basket and Eve’s Basket. Adam’s Basket is for female customers who will give this to male. It will contain Birthday card, Body Spray, Candle, Birthday Mug, Key Ring etc. Eves Basket is for male customers who will give this to female. It will contain Birthday card, Candle, Perfume, Chocolate, mobile phone strap doll etc. The Customers also can add other items from our Birthday gift list. The list contains Watches, Pendant, Ring, Earring, Bracelet, Neck chain, Sunglasses etc. for both man and women. The price will be vary by the items which customers wil select.Wild LearnersThis basket is for students. Our target consumers are school kids. It’s contains different cartoon print Pen, Pencil, Sharpener, Rubber, Plastic Scale, Color Pencil, Crayons, Pen Holder, Pencil Box, Geometry Box, Small size staplers, scissors, Glue sticks, Glitters pens, Sign pens etc. Born to FashionThis basket is for Jewelry lovers. It contains Necklace, Anklet, Chain, Pendant, Locket, Nose Pin, Ring, Earring, Bracelet etc. In this category basket, our target consumers are women.Special Basket for Special dayWe offer seasonal basket in special days such as, Valentine’s Day, Father’s Day, Mother’s Day, Friendship Day, Eid special basket, Puja Special, Christmas day gifts for childrens, Budha Purnima basket etc.Custom BasketIn this basket we will provide a list of options grouped into different categories. The customer then chooses items from each of the?categories and the?gift basket will be made for them. It’ll be well decorated with wide range of decorative items. We will also offer various decorative items to the customers so that they can choose those and decorate their basket by their own way. Prices will be depends by their items. Customers cannot take Custom Basket less than 200 taka. They have to choose items which price will be more than 200 taka. Otherwise they cannot take this basket.3.2 BenefitsPeople usually take our products because sometimes we don’t have any idea what should we give to our dear ones. Sometimes we don’t have much time to think about any gifts and buy something instantly. That’s why we design our basket in a way that people can easily take our basket and give it to their dear ones as a better gift. They will get all the products together and easily take gifts without any hesitation.Business Environment and Market Analysis4.1 Industry BackgroundThere will be lots of different types of baskets available in our business. Each basket is unique and different from others. Not only baskets, we also use transparent plastic boxes for some product such as Yummy chocolates and Wild Learners. We produce our products in our store. As the items of product’s sizes are small and easy to carry out, so it will be fit in our store easily. We can manage everything quite well without any hesitations.4.2 Competitive AnalysisThere are many different forms of competition in the gift basket business: Similar gift basket type retail stores: There are several of these stores located in market.?These competitors offer a wide range of gift baskets; however none of them are concentrating on the products which we will offer. There are no other retail stores are available in the market which will offer retail products. Stationary Shop: There are so many stationary stores that concentrate on making basket or bundle of stationary items. They also have theme based products for kids. They use various cartoon characters pencils, pen, eraser, sharpener, scale etc. They also concentrate on making some cartoon character in every single piece of item. But those baskets contain low quality stationary products.Chocolate gift baskets: There are several confectionaries and departmental storesoffer different types of chocolate basket. But those chocolate baskets contain many low quality and cheap chocolates. Most of the people usually don’t like those baskets especially parents don’t allow their children to take those chocolates.There are no other companies or stores offer this kind of gift basket which we will offer. There are many different gift baskets are available in the market. But those are not good enough to compete our products. Those baskets contain only few items good and others are very low and cheap in quality. But we will provide very high quality products. Every single piece of item will be good and high in quality and people usually like those products very much.4.3 Market AnalysisWe will go after two distinct market segments, individuals and corporations.?Both groups buy gift baskets as a goodwill gesture, typically for different reasons. Individuals typically buy the baskets as a present with more than half of sales occur during holidays.?Corporations buy the baskets as presents as well, but usually for events unrelated to the holidays.?By going after both of these groups, sales will be less seasonal?(relative to if only the individuals were targeted). Our main target group is individuals and target customers are mainly women. They usually buy gift baskets for children and men. Usually women are more likely to buy gift basket than men.4.4 SWOT AnalysisThe following SWOT analysis captures the key strengths and weaknesses within the company, and describes the opportunities and threats that face Gift Basket.StrengthsWe have high quality ingredients which is available everywhere.Low overhead that provides excellent margins and flexibility in manufacturing.WeaknessesAs a home-based start-up, if sales really spike it might be difficult to fulfill a large increase in orders. A limited marketing budget to generate awareness of Gift Basket and its service/product.OpportunitiesParticipation in an industry that is generally quite steady in terms of sales. The ability to have a marginal decrease in the spread of fixed costs relative to each basket as sales increase.ThreatsThe industry is very attractive and it’s easy to open. Our all informations will be in our website. So anyone can easily copy that.4.5 Market SegmentationGift Basket's has two distinct groups of customers, individuals and corporate customers: Individuals- The individuals are people who are looking to give a friend, relative, colleague, etc., a gift basket as a gesture of goodwill.? These customers typically do not have a specific type of gift basket in mind when they look at Gift Basket’s product offerings; they just want to give a gift. So basically we design our basket in that way.Corporate- The corporate customer is typically buying the basket for a colleague at work, either as a sign of appreciation, for a special event such as Annual General Meeting, official or corporate picnic etc. or as a thank you for a customer.4.6 Target Market Segment StrategyGift Basket is focusing on individuals and corporate customers because they are the largest segments of purchasers for gift baskets. Individuals are the target purchaser of gift baskets.?They purchase baskets typically as a thank you?in response for?something the recipient did or just to be nice.?They purchase baskets for giving gift in an occasion like birthdays, valentine’s day etc. Within the individual category, women are 69% more likely to be the purchaser of a gift basket compared to men.?This is not to say that women more often purchase gifts, it just indicates women are more likely to buy gift baskets.Gift Basket is focusing on the corporate customers as they currently represent approximately a third of the purchasers of gift baskets.?The corporate customer could be buying the basket for someone within their company, or they could be buying it for a customer, vendor, AGM or other events etc. The trend for the corporation to purchase gifts is not a new phenomenon and therefore would appear to be a solid market segment to pursue.Sales and Marketing Plan5.2 Marketing StrategyOur marketing and sales strategy will be based on different types of media and brochures.?Through these two tools, customers will become familiar with our products.?We will also heavily rely on word-of-mouth referrals for business. Everything we do for developing a happy customer. We also create our official website of our Wild Souls Gift Basket. So basically we need a developer for that. We will create Facebook fan page and that Fan page will be our big advertisement. We will give our all details in that fan page. We will give our all regular basket’s categories information, price, item lists. We inform our customers about our special day’s basket. When our basket will available, how much it costs, how they can get it, what they will get in a basket etc. everything will be given in our Facebook fan page. Now-a-days Facebook fan page is the biggest medium of advertisement and promotions. People will be more aware by fan pages. More than 60% of our customers will be aware by Facebook fan page.5.2 Sales StrategyOur?sales strategy will be targeted at obtaining both the individual and corporate clients.?It is our belief that both the individual and corporate customers will be primarily obtained through word-of-mouth referrals. Our marketing men will advertise about our product to individual through word-of-mouth. In corporate offices we will visit those offices and inform them about our baskets. We also distribute some of our baskets in those offices. We also give some promotional offers to the customers if they order through Facebook page. That offers include discount, free home delivery, free items etc. Bkash is also a great way of transaction of money and delivering our products. Our products will be sold through E-mail, phone calls, Bkash, Order given in Facebook page and direct order to us. We will delivered our products in some cheap delivery charges and sometime free of cost. But it will depend on the location of a customer and promotional offers.5.3 Sales ForecastThe first month will be spent setting up the business.?It is unlikely that there will be much sales activity.?In addition to dealing with accounting issues, equipment and materials will need to be purchased,?We hire a store and list of baskets items.?Before start the business we will create Facebook fan page. We will concentrate on developing our page and improve our fans in that page. We will be doing a lot of networking in an attempt to spread awareness about our Gift basket products and service. We will try to send some e-mail to some local well known corporation in an attempt to doing some corporate business. In the beginning of our journey we will give lots of promotional offers. For giving these offers at first we will have to face loss and lots of financial difficulties. So we will be prepared for those losses and hope that will be helpful for increase our sales and achieving our targets. Operations Plan6.1 ProductionIn the beginning of our business we will hire a store. We will use our store as our office where we produce our products. So there will be no other extra cost for hiring office. Our first month’s target is to make 32 baskets. We will produce each type of basket for three times. Three from Yummy Chocolate, two from Birthday surprise and each from born to fashion and wild learners. We also gather extra items for custom baskets. We will hire 2 employee for making the baskets. They will produce our products. 6.2 Raw MaterialsWe will buy our items from different locations. For chocolate we find a place where will get chocolates in less price than market price. But basically we don’t get huge discount when buying those kinds of chocolate which we will use in our basket. Those chocolates are imported from other country. For stationary and ornaments we will buy our items from different markets. For other items we have some market lists from where we will buy our items. All of the market will give us those items in a less price than anywhere else. Those items are very good in quality. We will research those market and products and try to find that there will be no low quality things. 6.3 LaborIn the beginning of our business we need 2 employers. They will help us to made baskets. All others members will be help us to improve our service and run our business easily. But if our sells will goes higher than we will hire one or more employers. But that will depends upon our sells.Management SummaryGift Basket will be formed as one kind of partnership business. We five partner will manage the whole business together. Everyone will get equal management power. No one can take any decision alone and without proper discussion with other left members. Therefore, there will be five positions for five partner in our business. General Manager, Executive Director, Marketing and Sales Manager, Finance and Accounts and Production Manager. There job will be different from others. There jobs are shown below:General ManagerGeneral Manager has a large collective knowledge by doing an extensive research and will receive orders for products and then develop a plan for how to fulfill the order, including how much of the necessary materials to buy and what employees have to do.Executive DirectorExecutive Director will make a design and develop strategic plans for their organization in a cost-effective and time-efficient manner.Marketing and Sales ManagerMarketing and Sales Manager has an extensive knowledge about the market by doing a research, Communicating with people outside the organization, representing the products to customers, the government, and other external sources. Manager will make new ideas for promoting our products and increasing sales.Finance and Accountswill deal with financial site of the company and prepare a good financial plan for the company as well. She will be responsible for financial planning and record-keeping, as well as financial reporting to higher management.Production ManagerProduction Manager will be involved with the planning, coordination and control of manufacturing processes. He will ensure that goods and services are produced efficiently and that the correct amount is produced at the right cost and level of quality.Here’s an organizational chart showing the positions in our business:Financial, Risk Management and Loan Proposal8.1 Financial PlanOur Business estimate budget is 200,000 taka each and total 1,000,000 taka. In the first month we will invest each 100,000 taka and total 500,000 taka. Then we will invest left money gradually. So in the beginning of our business we will need about 400,000 taka for our Raw materials, Advance payment for shop, Computer and other expenses. We will save 100,000 taka in the bank. We will open an account in the bank. Here’s 5 years projected Income Statement is shown: Description?Year 1Year 2Year 3Year 4Year 5Revenues100,000120,000144,000172,800207,360Cost of Sales66,66679,99995,9991,15,1991,38,239Gross Profit33,33440,00148,00157,60169,121? Advertising & Promotion10,0005,0005,0005,0005,000Bank Charges1,0001,0001,0001,0001,000Salaries50005000500050005000Insurance1,0001,0501,1031,1581,216Rent20,00020,00020,00020,00020,000Telephone2,000200500600800Others1,0002,0002,5003,0004,000Website12,0005,0005,0005,0005,000Total Operating Expeses52,00039,25040,10340,75842,016Depreciation1,5001,4251,3541,2861,222Net Income/Loss-20,166-6746,54415,55725,8848.2 Risk Management PlanWe are planning to take insurance for our business in near future. But for now we are not taking any insurance policy. When we will invest our full money then we will take insurance for our business.8.3 Loan Proposal PlanFor now we are not planning to take any loans. If we need funding then we will take loans from the bank, from where we open our account. So in the beginning we don’t need any amount of loans.ConclusionWe Wild Souls, basically make Gift Basket rich in high quality products. The products are very well known in the recent market. People usually like this kind of products very much. Each of the item of basket will be finest quality item and popular among people of our country. The products include Chocolates, stationary items such as pencil, pen, sharpener, eraser, scale, different shapes sharpeners and erasers etc., ornaments such as ring, anklet, neck chain, pendent, earring, necklace, bracelet etc., watches, body spray, candles, dry fruits and nuts and so more. The bundle items will be offer in a basket or box. We produce our product by ourselves. three or more employee needed for helping us in produce and deliver the products. We do our marketing job by ourselves. We create our officially website and Facebook fan page, use that page for advertise our product, promotes new products, give various offers, take orders, giving all the information of our products. It will help use to improve our potential customers. Our main motive is to supply good quality products together in a basket. At first we need very little amount of money. We are planning to invest 5,00,000 taka in the first month. Our overall total budget is 10, 00,000 taka. We invest 2, 00,000 taka each in this business. Our profit and loss margin will be equal. Everyone will get same amount of profit and take same amount of risk. Everyone equally take risk, profit and management power. So individually no one can take any kind of decision.AppendixReferencesUnderstanding Business- 9th Edition by William S. Nickels, James M. McHugh and Susan M. McHugh. ................
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