BUSINESS PLAN

Group 18: Readers DEN

359333 Karan Jagwani 360717 Meltem Celik 358134 Bhagirath Prathi 363566 Ozcan Karsli 360083 Raksha Mehta 360700 Serra Diptas

TABLE OF CONTENTS

1. Executive Summary 2. Industry and the Company 3. Market Research and Analysis 4. Marketing Plan 5. Design and Development Plans 6. Operations Plan 7. Critical Risks and Assumptions 8. Financial Plans / Statements 9. Proposed Offering 10. Appendices

EXECUTIVE SUMMARY
Readers Den Inc.
www.readersden.com
karanjagwani@readersden.com +919620199970 x 971 Address : Bangalore, Karnataka 5600029

Readers Den Inc.

Company name was founded in 2011 by Karan Jagwani, his associate Bhagirath Prathi, Raksha Mehta and investors Meltem Celik, Ozcan Karsli and Serra Diptas. Readers Den is an initiative for the purpose of providing the target market with the services of creativity with an exquisite library, showroom and a coffee shop.

Established Employees Stage Investments

2011 11 Introduction Given Below

Vision & Mission

The Readers Den vision is Making COBBIES as a phenomenon in India. In order to fulfill this vision the Readers Den Inc. will capitalise the unorganised magazines market that has tremendous growth potential in future and promote the hobby of reading among the youth.

Raising INR50 LAKHS

Approx $110,000

Business Concept
Readers Den, a fully equipped state-of-the-art reading-cum-leisure centre where people can both buy and read magazines. Our main aim of the centre is to cater to the need of the middle and high income group who enjoys reading as well as a hot cuppa. Wide ranges of magazines are available such as business magazines, automotive, art & gallery and the list goes on. Main attraction is the magazine library with the coffee shop. Reading being one of the favourite hobbies in India. We look to capitalise on this hobby and expose people to a variety of international as well as Indian magazines with the homely atmosphere and an authentically brute cup of coffee. Readers Den is a new concept coming up in Bangalore, India which will put forward to the customers a pleasure of buying and reading different type of world class magazines with a cup of coffee. This will be a different type of experience for each and every customer. The business idea has been initiated in order to meet the fast growing demands of this sector, in Bangalore, India. Through this, we look forward to first fulfil the demands of our primary geographic target market and then we plan to expand the business.

Market Opportunity
Bangalore city with its size and population has very few entertainment zones catering to all age groups. The city which is bustling with young crowd is demanding for more places to have fun and spend time. The city with all its development has no magazine stores which cater to every age group. The present scenario of entertainment sector in magazines store is dismal. It cannot sustain with the growing demand of its people. India's urbanite population constantly is looking out for newer and more novel recreational outlets. A growing city like Bangalore needs a well-equipped magazine library and a show room for the entertainment of its people. Our aim is to capitalise on youth who have a desire for knowledge and hobby of reading. The idea is feasible as Bangalore contains nearly 23 percent of the youth who are crazy for different types of magazines. Unlike crossword, landmark and other libraries who provide lot of variety of books and very less magazines Readers Den contains nearly three hundred different types of magazines covering each and every sector of public interest. Moreover it is going to be an only centre with largest varieties of magazines in Bangalore. The location makes the idea entirely feasible. Therefore it is going to be a different type of experience for each and every one who likes to read magazines. Also Readers Den initially will come out with good offers to establish itself in the market and contribute something different to this sector.

Resources
Readers Den has strategic collaboration with HIGGINBOTHAMS dealers, a Chennai based company for supplying the magazines. The entire world class magazines will be supplied by them at a lesser price than the market. Different schemes will be laid off by them. Moreover, they are the one who has all the world class magazines. Readers Den is providing the customers a new experience of a coffee with magazines. We are signing contract with CAFE COFFEE DAY who will be helping us in serving a coffee inside a library as well as a good place to hang out. Caf Coffee Day opened its first cafe in 1996 on Brigade Road in Bangalore, and today has the largest cafe retail chain in India with 720 cafes in 112 cities.

Competitors
Small unorganized competitors

Team
CEO: Karan Jagwani is currently pursuing his Bachelor of Business Management in Bangalore. He has also won Business Tycoon fest for Best Stall in his college fest. He also has worked as a team leader in Barking Dog Production house India. COO: Bhagirath Prathi is currently pursuing Bachelors of Business Management in Bangalore. Has worked as an intern in Uniglobe travel management company. He would be handling the Accounting Department. Serra Diptas: Hails from a family who owns a restaurant in Turkey. Her experience and expertise will enhance our service. Raksha Mehta: Is currently pursuing Bachelor of Business Management in Bangalore and she comes from a family who are into Food Production so she is well versed in the operations relating to food production. Meltem Celik: Has good marketing skills which will help us in increasing our customer base. She will be in charge of advertising and customer service. Ozcan Karsli: Has organizing and leadership skills. He will be in charge of the Human Resources that we will require. Directors Karan Jagwani, CEO Serra Diptas and Meltem Celik, Very Rich Investor connected to other very rich investors. Ozcan Karsli, Very well connected in the Readers Den Inc. field of business.

Customers
Youth population in Bangalore, India People whose main hobby is reading

2.Industry and the Company

A leading, industrially advanced developing country, India has large, medium and small industrial units of production in almost all branches of the industry. The small industry sector and medium industry sector is considered to have a major role in the Indian economy due to its 70 percent share in the national industrial output along with an 80 percent share in industrial employment and nearly 35 percent share in exports .SSEs and MSEs are usually distinguished from the large-scale industries on the basis of size, capital resources and labour force in the units. With India's urbanite population constantly on the lookout for newer and more novel recreational outlets, magazines promoters say that they are having a windfall! This is a field that has been traditionally identified as very American. And the fact that they are all doing excellent business. There is a pent up demand in India for genuine leisure, and a lot more disposable income than avenues to enjoy it. One can't just keep shopping or going out all the time. Magazines thus fill a void. Unlike Landmark, or say Crossword in India, where there are a few purchasers and thousands of readers, magazines can involve everyone. It does not require special skills. But with prices at Rs 100 to 150 per book, there might be many to challenge the statement. Operators claim that the store is not popular right now because upfront costs are high and is a different. The import of a twin unit costs at least 4045 lakhs because all the magazines are imported. The stores are fast gaining popularity in the country because they are extremely family friendly. This has taken them a long way in an environment where there are not too many places where readers get magazines of their genre under one stop. This is where the concept of FECs -- Family Entertainment Centres -came in. The Indian response has already overshot initial expectations. In most centres in the country, attendance is at roughly 500 to 600 daily, with waiting lists on weekends stretching up to six hours. Others are also looking towards the country with the saturation in Western markets and with India's liberalisation policies which put magazines under the Open General License category.

IMPLEMENTATION STRATEGIES
All procedures and formalities to bring Readers Den into existence on paper are done with, but there is a huge difference between theoretical planning of a business and actual implementation. Quick implementation is necessary because what is in demand today might not be tomorrow. Hence for smart and successful implementation of the business we have formulated the following strategies. To abide by all safety and quality standards. To fulfil all legal and lawful formalities to avoid any future hassles. To strict supervision in the site during the build-up and renovation process. To use marketing strategies create awareness amongst people from build-up stage. To recruit the work force well in advance so as to get the best in the business. To handle the finance in an effective and wise way.

PLAN SUMMARY
Readers Den is an initiative for the purpose of providing the target market with the services of creativity with an exquisite library, showroom and a coffee shop. The name Readers Den is to denote a traditional place where every customer can have a different experience of a place much away from them, much different from their culture. The tagline of the firm FROM MAGZ TO FIZZES will attract more customers by building up a curiosity in them to visit the place and have a different experience. As the geographic target of the centre is Bangalore, Readers Den will be situated on the main area of Bangalore, making sure of more customers and also making sure that all the other parts of the city are easily accessible. The total capital as said before is going to be Rs 50 lakh, which will be constituted by equal contributions from all the six partners. The partners will be equal in the firm and profits will be shared equally at 16.67 % percentage each. The organizational set up of Readers Den will include many hierarchical slabs. The target in the first year of operations of the centre is going to be to achieve the good market while building a strong network with all the main customers.

SWOT ANALYSIS
WEAKNESS New entrant No experience ADDRESS WEAKNESS Committed to expansion High margins provide flexibility Having a dedicated and hard

working team OPPORTUNITIES Value for money Would be preferred by the local crowd MAXIMIZE OPPORTUNITIES Build consumer preference Ease, quality and consistency Commitment innovation to ensures relentless market

benchmarks challenged. THREATS Future competition MINIMIZE THREATS Brand building Create brand loyalty

4.Marketing Plan
Segmentation, Targeting, Positioning
SEGMENTATION: Market segmentation is undertaken in order to focus on the subsets of the prospects that are most likely to purchase our offering. This will in turn help us take the best returns form our marketing and entertainment expenditures. Based on the need our service satisfies, the market is segmented into diverse sections. They are: Demographic Segmentation: These include factors like age, social esteem, and income levels which purely relate to purely population related characteristics the masses possess. For Readers Den the main customers are going to be between 16 to 35 years who are fond of going through magazines. Psychographic Segmentation: These include lifestyle and personality of individuals. Many of them are influenced by the image the company holds which in our case is true value for money concept which is a general thinking of almost every Indian customer. We are looking for civilised Indian customers who fond of magazines. Geographical Segmentation: This takes into consideration the region to which the customer belongs to or prospects to visit. The prevalent atmosphere and lifestyle of the location will determine the success of the service to a large extent. We are located in the posh area of Bangalore which makes us different from others. Behavioural Segmentation: It is based on the benefits sought in the service, usage rate of the service and the social status enjoyed by the population. The benefits that the customer derives from the service as well as the prospects preferences determine the acceptance and complete incorporation of the service.

TARGETING: Targeting the right customers is one of the most important criteria that need to be looked at in order to create a potential customer market. The major sectors that we would be targeting are: Middle, Upper-middle and High income groups: We are targeting this range of income groups as we are launching this service for those who are very fond of going through different types of magazines. Youth and higher age groups: We are targeting this particular segment of age groups as we believe that it is mostly the youth or the working class who want to go to places like Readers Den to buy or read magazines with a special coffee.
30 25 20 15 10 5 0 MIDDLE UPPER MIDDLE HIGHER 16-23 24-40 40 ABOVE

POSITIONING: We try to position ourselves as a centre which provides the people with the desired expectations and a different type of experience.

Unique Selling Proposition

FROM MAGZ TO FIZZES The tagline of the firm itself describes the activities that we are planning to take up which are providing people who are fond of magazines with a coffee. We are trying to make the model angle so as to appeal to the youth by using the term magz. We have also designed the teaser which is to increase the inquisitiveness among the youth. Readers Den provides a unique fusion of expressions, convenience, and interaction and gives a new forum to the youth as well as to all the groups of people who are crazy about the magazines to fulfil their needs of reading and purchasing world class magazines according to the customer choice. Thus Readers Den will satisfy the initial target of customers and will have high acceptance rate; in short, one can have one of the experience something new at this place.

7ps of Marketing
PRODUCT: Readers Den: Our product is the centre that serves the need of almost every income group who enjoys going through world class magazines. There has been a contract with interior decorators for the interior designing of the centre. Readers Den is most attractive place which gives an insight of what the magazine actually holds and also includes world class magazines giving each and every customer a homely atmosphere. PRICE: Most of the people coming to Readers Den will be charged according to the magazines they purchase or the time they spend in reading the magazine. They can also become the part of library by paying subscription fee. Initially we will come out with lots of promotional offers to promote Readers Den and attract large number of customers to establish ourselves in market. PLACE: Readers Den is situated at 80 ft. Road in Kormangla which is also one of the posh areas of Bangalore. PROMOTION: Initially we are promoting Readers Den through newspapers like Bangalore Times, supplement of TIMES OF INDIA and other local newspapers. We will also be doing hand to hand advertisements by giving out of pamphlets putting advertisement on radio. Word of mouth will play a major role in the advertising of Readers Den. PHYSICAL EVIDENCE: Physical evidence will include the place where we are situated, the magazines, the advertising we do, the bills to customers, and the ambience we provide. PEOPLE: People in Readers Den include the manager, accountants, staffs and securities. The efforts of the crew are coordinated in a well-knit system to ensure minimum time lag and rendering par-excellence customer service. PROCESS: The process includes purchasing of magazines, sitting in library and going through world class magazines, also enjoying a cup of coffee with it. The customer can also become the part of Readers Den by becoming the member of the library. The coffee will be outsourced to CAFE COFFEE DAY on the basis of profit sharing.

Market Penetration Strategy

Market penetration is one of the four growth strategies of the Product-Market Growth Matrix defined by Ansoff. Market penetration occurs when a company enters/penetrates a market with current products. The best way to achieve this is by gaining competitors' customers (part of their market share). Other ways include attracting non-users of your product or convincing current clients to use more of your product/service (by advertising etc.). Ansoff developed the Product-Market Growth Matrix to help firms recognise if there was any advantage of entering a market. We are going to come out with an existing product in the existing market in different style. Therefore our strategy will make us different from the others.

BRAND BUILDING:
By increasing the profit by multifold. By increasing customer satisfaction.

The main strategy at launch that we would be adopting would be that of diversification where we would try to penetrate the market with a new service which will attract a large customer base making the plan more feasible.

Porters 5 Force Analysis

 BARGAINING POWER OF CUSTOMERS: Readers Den is going to be one of the best magazine shops in Bangalore. The bargaining power of the customer will play an important role in the shop. The customer will be given various offers so that they can play a role of the customer. It has been rightly said that customers are always right. The dealer doesnt know what right is yet. BARGAINING POWER OF SUPPLIERS: It is balanced because unlike the small unorganised players who buy in small quantities, Readers Den will buy in huge quantity. The suppliers will come out with various offers which are beneficiary for both of them. THREAT OF NEW ENTRANTS: Since we are having first mover advantage we need to substitute our product and come out with new attractive new offers. Expanding the market, widening our product mix, introducing various customer loyalty programs will help us to create barriers to entry. THREAT OF SUBSITUTE PRODUCTS: No substitute products can replace our product since it is an old product with a new variety. COMPETITION RIVALRY: No rivalry since we are having first mover advantage. Later as it become popular we might have different advantages. When coming to the magazines store, there exist many small unorganized players in the markets. They do offer magazines at a cheaper rate than ours but they lack the overall experience involved with the industry which we are to provide the customer with.

Human Resource
Post Manager Accountants Staffs Maintenance Staff Security TOTAL Number of persons required 1 2 4 2 2 11 Salary per month (Rs.) 18,000.00 10,000.00 8,000.00 3,000.00 4,000.00 43,000.00

A BRIEF PROFILE: MANAGER: Description: Managing books, keeping track of customers for the library and moreover looking after the entire administration. Qualification: Undergraduate passes out with the minimum knowledge about magazines and administrative knowledge and also computer knowledge. Specification: Soft skills, communication skills, short hand, typing skills, etc. ACCOUNTANTS: Description: Managing books, keeping all the accounts, library records and the entire financial work. Qualification: Undergraduate passes out with the minimum knowledge about tally and computer accounting. Specification: Soft skills, brilliant with accounts work, computer knowledge.

SALARY BREAK UP
Post Number of persons required Manager Accountants Staffs Maintenance Staff Security TOTAL 2 11 4,000.00 43,000.00 8,000.00 84,000.00 96,000.00 10,08,000.00 1 2 4 2 18,000.00 10,000.00 8,000.00 3,000.00 18,000.00 20,000.00 32,000.00 6,000.00 2,16,000.00 24,0000.00 3,84,000.00 72,000.00 Salary per month (Rs.) Monthly salary (Rs.) Yearly salary (Rs.)

5.Development Plan
Bangalore with its size and population has very few entertainment zones catering to all age groups. The city which is bustling with young crowd is demanding for more places to have fun and spend time. The city with all its development has no magazine stores which cater to every age group. The present scenario of entertainment sector in magazines store is dismal. It cannot sustain with the growing demand of its people. India's urban population is constantly on the lookout for newer and more novel recreational outlets. .Layout

Design

Location Analysis
Reasons for choosing Kormangla Kormangla Road is also a central location for adjoining areas like Austin Town, Richmond Road, and VittalMalya Road and so on giving it location benefit and helping the organization to cut down on its transportation expenses. Here again, we see that a good number of outstation students stay in this locality. These students are mainly from St. Josephs College and Christ University. Even a good number of office goers are also seen in that area.

6.Operations Plan
MAGAZINES CONTRACT:
Readers Den signed a contract with HIGGINBOTHAMS dealers, a Chennai based company for supplying the magazines. The entire world class magazines will be supplied by them at a lesser price than the market. Different schemes will be laid off by them. Moreover they are the one who has all the world class magazines. The discount is given according to the Purchase and scheme which is laid by the dealer. The detail has been given below: SECTOR Business Entertainment International Automobiles Leisure and travel Carrier Children comics DISCOUNT 25% 25% 22% 20% 25% 30% 35%

The dealers also provide the customer with the special service for return of magazines. 10 percent of all the magazines related to business, entertainment, automobiles, leisure and travel, carrier and children comics can be returned back to the dealer if unsold. Moreover 5 percent of the international magazines can be returned. About the company: The Higginbotham's is an Indian company of book sellers and publishers based in the city of Chennai. The main bookstore at Mount Road, Chennai has the reputation of being India's oldest bookshop in existence. The Higginbothams has a chain of 22 outlets spread across the South Indian states of Tamil Nadu, Andhra Pradesh, Karnataka and Kerala.

INTERIOR DESIGNER CONTRACT: For the interior designing of Readers Den we are giving the contract to century architects and interior designer of Bangalore. They will be charging 5 percent of the entire execution done by them. The scheme is favourable since they are going to provide world class plan and will be charging only 5 percent of the entire execution. About the company: Since 1993 we have completed successfully many turnkey interior projects in Bangalore, and other cities like Mumbai, Hyderabad, Vishakhapatnam, Jaipur, and Chennai.

COFFEE DAY CONTRACT: Readers Den is providing the customers a new experience of a coffee with magazines. We are signing contract with CAFE COFFEE DAY who will be helping us in serving a coffee inside a library as well as a good place to hang out. Before signing the contract following things will be taken under consideration: The floor area we seek is between 400 to 500 square ft. The power supply should range between 20 to 30 KVA depending on the carpet area. Full back up power should be provided. Adequate water points and drainage systems are mandatory. About the company: Division of Amalgamated Bean Coffee Trading Company Ltd. (ABCTCL), it is commonly known as Coffee Day or CCD. It opened its first cafe in 1996 on Brigade Road in Bangalore, and today has the largest cafe retail chain in India with 720 cafes in 112 cities. A majority of its cafes are located in Bangalore. The cafe chain has had much success riding, and to some extent creating, the cafe culture wave that swept across metropolitan India following strong economic growth resulting in an increase in youth spending power. It has even tied up with WorldSpace and Microsense to enable its cafes with satellite radio and WiFi, respectively. Its first Wi-Fi cafe was opened on Lavelle Road, Bangalore.

7.Critical Risks and Assumptions

Inflation is one of the major economic danger. India is facing at the current scenario as the inflation is on the rise. The price of the essential commodities that the consumer requires for his day to day activities increases, as a result he has to pay more for the same units of goods and due to this his real income decreases and he is reluctant and maybe he cannot afford spending on lifestyle activities. This venture is also a lifestyle utility hence it may be affected by inflation up to a certain extent. Since this is the first of its kind store and library in Bangalore where a store does not exist and hence when it opens it will be a major source of attraction for the people of Bangalore and people will come and enjoy the experience but it remains to be seen if people accept it and people come to the arena repetitively. Another major risk for the project would be that other established and well known players in the magazine market spread over India see our success story and want a pie out the Bangalore market and hence establish their franchisee in Bangalore, so hence we should capitalize on the initial advantage and establish brand awareness, brand loyalty and goodwill for Readers Den.

Worst Case Scenario and Contingencies

Inflation Non-Repetitive value Entry of new competitors Less Foot Fall Non availability and non-cooperation of labor Theft and fire Unreliable equipment and labor Bureaucracy

8.Financial Plans / Statements

Income and Expenditure Account
PARTICULARS REVENUE AND INCOME(A)
LESS: EXPENSES Administrative Expenses Salaries Rent Office Stationary & Printing Plastic Depreciation Electricity Bill Water Magazines Purchase returns Newspapers 54,750.00 95,809.00 1,69,000.00 10,000.00 10,77,112.00 (49,440.00) 24,000.00 57,487.00 66,424.00 1,77,450.00 10,000.00 11,78,203.00 (49,440.00) 24,000.00 60,362.00 50,898.00 1,86,323.00 10,000.00 11,78,203.00 (49,440.00) 24,000.00

YEAR 1 83,59,058.00

YEAR 2 91,94,964.00

YEAR 3 1,01,14,460.18

10,08,000.00 15,12,000.00
36,000.00

11,08,800.00 15,87,600.00
37,800.00

12,19,680.00 16,66,980.00
39,690.00

Selling Expenses Marketing Transportation Miscellaneous Expenses Start up Expenses Amount paid in case of loss Total EXPENSES (B) TOTAL OPERATING PROFIT/ LOSS (A-B) 4,52,693.00 4,52,693.00 4,52,694.00 2,16,000.00 10,000.00 50,000.00 2,37,600.00 10,500.00 50,000.00 2,61,360.00 11,025.00 50,000.00

46,65,924.00

49,49,117.00

51,61,775.00

Amount paid in case of profit NET PROFIT/LOSS

Nil

Nil

Nil

36,93,134.00
Nil

42,45,846.80
Nil

49,52,685.18
Nil

Less :Portion to venture capitalist LESS: TAX (33.33%) Net profit after paying tax and portion to capitalist Profit loss of last year Net Profit/ Loss of this year

Nil

36,93,134.00 36,93,134.00 79,38,980.00

79,38,980.00

1,28,91,665.18

Balance Sheet
Particulars ASSETS Current Assets Cash Other Current Asset Total Current Assets Long-term Assets Long-term Assets Less: Accumulated Depreciation Total Long-term Assets Total Assets LIABILITIES Current Liabilities 20,00,214.00 86,93,134.00 19,33,790.00 1,29,38,981.00 18,82,892.00 1,78,91,666.18 95,809.00 1,62,233.00 2,13,131.00 20,96,023.00 20,96,023.00 20,96,023.00 66,92,920.00 1,10,05,191.00 1,60,08,774.18 66,92,920.00 1,10,05,191.00 1,60,08,774.18 Year 1 Year 2 Year 3

Provision for tax Interest Charges Accumulated Liability Total Current Liabilities Long-term Liabilities Capital Paid-in Capital Reserves and surplus Add: Net profit after interest and tax Total Capital ( Net Worth) Total Liabilities 86,93,134.00 86,93,134.00 1,29,38,981.00 1,29,38,981.00 1,78,91,666.18 1,78,91,666.18 36,93,134.00 79,38,980.00 1,28,91,665.18 50,00,000.00 50,00,000.00 50,00,000.00

9.Proposed Offering

INITITAL INVESTMENTS (A) PARTICULARS AMOUNT (in Rs.) DESCRIPTION

ASSETS
Rent 10 months advance 12,60,000.00 1800sqft in VITTAL MALLYA road rent costing 70 per sq ft. 10 months in advance.

Construction

1,30,510.00 The details of the construction are given below. Mainly construction is done for making show room shelves and other design necessary.

Interior designer

22,673.00 The contract is given to century interiors who will be charging 7 percent of the execution.

Three Desktops and printer

57,990.00 Acer Laptop AMD processor Athelon 4200 1.86 GHzdual core Acer751, Ram 1 GB DDR2, HD 160 GB with 15 TFT monitor and canon printer.

Air conditioner

91,932.00 3 split a/c, Haier Air conditioner, HC18DIVAR, 1.5 ton, 15 SEER

Furniture & Fixtures

2,04,525.00 Details for the library almirah, chairs, tables and others furniture in detail are provided below.

Glasses

1,65,000.00 Rough and tough glass is used in show room per sqftRs 300.

Magazines

1,02,898.00 The detail of the magazines is given at the end.

Newspaper

2,500.00 Subscribing different types of newspapers for the library.

Security

29,610.00 Defender DFDVR2 Ultra Compact Internet Accessible DVR Security System - Digital Video Recorder with Built-in 7" LCD and 4 Hi-Res Indoor/Outdoor Camera. Night Vision Surveillance

Lights and fan TOTAL START UP EXPENSES (B) Library legal expenses

28,385.00 The details of the fan and light are provided below. 20,96,023.00

4,500.00 For getting the license of the library needs to be registered under the state government. Moreover the license is valid for 6 years.

Legal charges

2,000.00 Rs 1000 stamp paper and Rs 1000 registration

License fee for the show room Marketing Expenses Miscellaneous TOTAL WORKING CAPITAL(C)

2,500.00 Initial fee for the show room to be registered and a yearly fee for 750 is given, 12,74,080.00 The detail breakup of the marketing is given below. 75,000.00 13,58,080.00 10,50,000.00 Initially to pay the advance to various people we have contracted with. Also meeting the

requirements of the people and the staff.

RESERVES AND SURPLUS (D)

4,95,897.00

GRAND TOTAL (A+B+C+D)

50,00,000.00

Revenue from Library

Readers Den is coming out with hourly basis technique. The customers did not require becoming the member of the library. They can be charged on hourly basis. Taking into consideration the worst case scenario we are expecting at least 25 customers who will follow this technique. The revenue calculation is as follows: Library will be operating for12 hours. Per hour is costing Rs 50/- therefore the entire revenue for 365 days is 54,75,000.

Total Revenue from Magazines

NAME OF SECTOR BUSINESS AUTOMOBILES LIFE STYLE INTERNATIONAL CHILDREN COMICS CAREER SPORT AND TRAVEL TOTAL AMOUNT 5,31,355.00 1,63,777.00 2,87,445.00 1,23,701.00 51,660.00 2,760.00 47,160.00 12,07,858.00

Revenue from Membership Subscription

The library membership form is valid for six months. For six months the customer will be charged Rs 500/-. The break up is as follows: FOR THE FIRST SIX MONTHS NUMBER OF MEMBERS 1200 CHARGE PER HEAD 500.00 TOTAL REVENUE 6,00,000.00

FOR THE NEXT SIX MONTHS NUMBER OF MEMBERS 1300 CHARGES PER HEAD 500.00 TOTAL REVENUE 6,50,000.00

Total revenue from membership subscription is: 12,50,000.

Revenue from Coffee Shop

25 percent of the revenue from coffee shop is the revenue for Readers Den. On the assumption that the coffee shop earns a revenue of 25,00,000 per year. The amount earned by us is: 6,25,000.

Total Revenue during the Year

SOURCE SHOWROOM MEMBERSHIP HOURLY RATES COFFEE SHOP TOTAL REVENUE 12,07,858.00 54,75,000.00 10,51,200.00 6,25,000.00 83,59,058.00

Calculation of the Magazines Returned

NAME OF SECTOR BUSINESS AUTOMOBILES LIFESTYLE AND ENTERTAINMENT CHILDREN COMICS SPORTS AND TRAVEL TOTAL AMOUNT 23,951.00 8,702.00 12,446.00 1,911.00 2,430.00

49,440.00

Amount
25,000.00 20,000.00 15,000.00 10,000.00 5,000.00 0.00 Amount

10.Appendices
QUESTIONNAIRE
We need to conduct a survey to discover the market demands and potential of the consumers. This is done by preparing a questionnaire and asking the target customers to fill and respond to it.

Data Analysis and Interpretation

Sample size: 50 questionnaires Question 1: What is your Occupation?

30 25 20 16 15 10 5 0 student working other Series1 27

Conclusion: Our target market being students and office goers, through this analysis it is depicted that form 50 people 43 students and office goers. Therefore, we have a huge market to cater.

Question 2: What is your monthly income/pocket money?

7 11

0-8000 8000-16000 16000 and obove

32

Conclusion: Our target market being mainly students and office goers, their income and pocket money is 8000-16000, thus depicting that they have enough money to spend on food. They will be ready to spend at least 20% of their income. Question 3: How much do you spend on reading monthly?

25 20 15 10 5 0 0-1500 1500-3000 3000-4500 4500 and above

0-1500 1500-3000 3000-4500 4500 and above

Conclusion: This question shows that more than 25 people are ready to spend between RS 1500-3000 on food. This question has given us more scope to our business. This analysis will help us for expansion.

Question 4: What is the source of reading you rely on?

2 16 20
library buying sharing

others

12

Question 5: Would you prefer magazines for most of the times?

yes no

47

Conclusion: Out of 50 applicants 47 said yes, which definitely increases the scope of our business. Reading is not good for health in long term. So healthy and cobbies are what everybody wants and that what we provide to our customers.

Question 6: What is the expenditure per magazines incurred by you?

45 40 35 30 25 20 15 10 5 0 0-100 100-200 200-300 300 and obove
Se

Conclusion: Most students have limited pocket money and have a budget to follow. More than 40 people have limited their expenditure to only Rs 0-100 daily. And our tiffin price is only Rs 35 which is very cheap as compared to the budget they have.

REVENUE MODEL Calculation from the Sales of Magazines

BUSINESS:
NAME Smart money Fortune Harvard business review Business week Financial times Brand week Money adviser Business opportunity Tea & coffee trade journal The investor Indian journal of economics ( once in 6 months) Business India India today News week Fortune money Outlook The week Time Treasury management Modern medicare Frontline Franchising world Outlook money Business Today Outlook business Outlook profit Outlook The economist Pitch Scientific American Time Franchise Plus QTY SOLD 45 96 11 195 442 23 11 11 RATE 45.00 50.00 310.00 50.00 15.00 155.00 115.00 270.00 190.00 11 11 500.00 AMOUNT 2,025.00 4,800.00 3,410.00 9,750.00 6,630.00 3,565.00 1,265.00 2,970.00 2,090.00 5,500.00

1 11 2418 1430 442 2418 936 442 11 11 1430 45 591 715 715 468 2418 96 45 12 195 6

2,350.00 230.00 25.00 25.00 50.00 15.00 15.00 55.00 125.00 330.00 20.00 35.00 65.00 25.00 20.00 50.00 25.00 200.00 45.00 100.00 100.00 30.00

2,350.00 2,530.00 60,450.00 35,750.00 22,100.00 36,270.00 14,040.00 24,310.00 1,375.00 3,630.00 28,600.00 1,575.00 38,415.00 17,875.00 14,300.00 23,400.00 60,450.00 19,200.00 2,025.00 1,200.00 19,500.00 180.00

Money today Electronics for you Franchising world Usp age Capital Market Cinema systems Time Dataquest Indian Real estate Consumer Voice Benefit Brand reporter Retail Biz TOTAL

221 11 11 11 23 11 196 97 97 11 11 23 11

30.00 40.00 50.00 40.00 50.00 75.00 180.00 25.00 100.00 50.00 50.00 20.00 75.00

6,630.00 440.00 550.00 440.00 1,150.00 825.00 35,280.00 2,425.00 9,700.00 550.00 550.00 460.00 825.00 5,31,355.00

AUTOMOBILES:
NAME Car driver Road track Motor trend Dream big Hot road Rider Motor cycle Car draft Motor cross European car F1 Hot rodding 4 wheel Factory rides Classic trucks Motor cycling Hot bike Motor cross Chevy ( project cars) Mopar Road racing world Top gear Cornette fever Evo lotus Off road QTY SOLD 145 11 11 11 45 45 45 22 11 102 102 34 45 11 11 45 102 11 45 22 22 45 102 11 22 RATE 47.00 47.00 40.00 40.00 55.00 47.00 86.00 47.00 60.00 47.00 280.00 60.00 47.00 47.00 90.00 120.00 85.00 80.00 70.00 180.00 80.00 650.00 110.00 490.00 160.00 AMOUNT 2,115.00 517.00 440.00 440.00 2,475.00 2,115.00 3,870.00 1,034.00 660.00 4,794.00 28,560.00 2,040.00 2,115.00 517.00 990.00 5,400.00 8,670.00 880.00 3,150.00 3,960.00 1,760.00 29,250.00 11,220.00 5,390.00 3,520.00

Auto spot Ruf stuff Car collector 4 wheel drive Rally cross Show goer Bike Automotive new TOTAL

45 11 45 11 11 45 22 11

47.00 560.00 117.00 150.00 410.00 100.00 550.00 145.00

2,115.00 6,160.00 5,265.00 1,650.00 4,510.00 4,500.00 12,100.00 1,595.00 1,63,777.00

LIFESTYLE AND ENTERTAINMENT:

NAME Blender And persand Better interiors People Savvy Showtime Complete wellbeing Shoes Elle Hair M Cine Blitz Hi Blitz Ok Blitz Time Out Bengaluru FHM Women era Jade Film fare Men s health Femina Hello Grazia Cosmopolitan Prevention Stardust Society Vogue GQ TOTAL QTY SOLD 22 45 11 715 102 273 45 22 102 11 22 558 159 102 97 102 221 11 1209 102 1209 45 11 102 11 330 22 159 45 RATE 100.00 100.00 75.00 30.00 50.00 50.00 75.00 100.00 75.00 50.00 75.00 50.00 100.00 100.00 30.00 100.00 30.00 100.00 30.00 100.00 40.00 100.00 75.00 100.00 100.00 50.00 50.00 100.00 100.00 AMOUNT 2,200.00 4,500.00 825.00 21,450.00 5,100.00 13,650.00 3,375.00 2,200.00 7,650.00 550.00 1,650.00 27,900.00 15,900.00 10,200.00 2,910.00 10,200.00 6,630.00 1,100.00 36,270.00 10,200.00 48,360.00 4,500.00 825.00 10,200.00 1,100.00 16,500.00 1,100.00 15,900.00 4,500.00 2,87,445.00

CHILDREN COMICS:
NAME Chitra Katha ChachaChaudhary Comic digest Biloo Chandamama Disney Little words Champak Tinkle Tinkle digest TOTAL QTY SOLD 104 156 208 104 104 104 104 208 711 208 RATE 25.00 20.00 40.00 20.00 25.00 50.00 20.00 15.00 20.00 40.00 AMOUNT 2,600.00 3,120.00 8,320.00 2,080.00 2,600.00 5,200.00 2,080.00 3,120.00 14,220.00 8,320.00 51,660.00

CAREER:
NAME Career 360 Junior science refresher Competition refresher Competition knowledge refresher TOTAL QTY SOLD 24 24 24 24 RATE 40.00 30.00 30.00 15.00 AMOUNT 960.00 720.00 720.00 360.00

2,760.00

INTERNATIONAL:
NAME Elle(UK) Eve FHM annual Front Cosmo girl National Geographic National Geographic Space National Geographic 100 QTY SOLD 12 1 1 12 12 24 1 1 RATE 561.00 561.(1 issue) 1018.00 578.00 374.00 225.00 795.(Annual) 795.00 AMOUNT 6,732.00 1,122.00 1,018.00 6,936.00 4,488.00 5,400.00 795.00 795.00

best wildlife pictures National Geographic 100 pictures Maxim OK! GQ Marie Claire Asian wall street journal Vogue TOTAL

795.00

795.00

24 52 52 12 0 48

578.00 275.00 638.00 544.00 3150.(daily) 578.00

13,872.00 14,300.00 33,176.00 6,528.00 0.00 27,744.00 1,23,701.00

SPORTS AND TRAVEL:

NAME Asian photography Discover India Travel + leisure Overdrive Outlook traveller Cricket today CV Selling World Travel Golf Digest Golf style Travel plus T3 Good Housekeeping TOTAL QTY SOLD 11 22 11 102 45 159 11 11 22 22 45 102 22 RATE 50.00 100.00 150.00 100.00 60.00 40.00 100.00 50.00 100.00 150.00 100.00 100.00 75.00 AMOUNT 550.00 2,200.00 1,650.00 10,200.00 2,700.00 6,360.00 1,100.00 550.00 2,200.00 3,300.00 4,500.00 10,200.00 1,650.00 47,160.00

Advertisement

MARKETING STRATEGIES

ISO Certificate

Other Marketing Plans

NEWSPAPER ADVERTISEMENTS: For the first few months the advertisement will be done through newspaper in DAILY NEWS & ANALYSIS (6x8) Rs1,99,680. We are also putting our advertisement in Bangalore times the supplement of TIMES Of INDIA .The size is going to be (6x8) is 4,83,840. It is going to come out once in a month.

ONLINE DIRECTORIES: Readers Den will be listed in some of the famous online directories like GETIT YELLOW PAGES and Just dial. RADIO ADVERTISEMENT: Our basic market strategy is radio advertisement. Our main radio partners are RADIO ONE and INDIGO. We are putting advertisement for 15 days. The timing for the advertisement is 11 am to 6 pm for every 10 seconds. The cost comes up to 30,000 for radio one advertisement and 40,000 for indigo advertisement. TIE UPS: Basically one of the basic strategies will be tying up with coffee shop of Bangalore making them aware about the new type of centre will be of great attraction. The coffee shop will be of brand image and it will add a value to our shop and library. Therefore basic tie ups will help us to improve the image. OTHER MARKETING STRATEGIES: We are going to distribute pamphlets to market ourselves and also word of mouth will place an important role. The basic strategy to market is pamphlets which will play an important role. We will provide excellent service to our customers.

Cash Flow Statement

PARTICULARS YEAR 1 YEAR 2 YEAR 3

Cash Received Cash from Operations: Cash Sales/ cash received against other services Cash from Receivables Subtotal Cash from Operations Additional Cash Received: Amount given by bank Capital Contribution from the company Capital contribution from the partners Subtotal Cash Received 1,33,59,058.00 91,94,964.00 1,01,14,460.18 50,00,000.00 83,59,058.00 91,94,964.00 1,01,14,460.18 0.00 0.00 0.00 83,59,058.00 91,94,964.00 1,01,14,460.18

Expenditures (Expenditures from Operations: Cash Spending Payment of taxes 41,17,422.00 44,30,000.00 46,58,183.00

Subtotal Spent on Operations Long-term Liabilities Principal Repayment Start-up expenses Purchase Longterm Assets Subtotal Cash Spent 20,96,023.00 4,52,693.00 4,52,693.00 4,52,694.00

Net Cash Flow Previous years Cash b/d Cash Balance

66,92,920.00

43,12,271.00

50,03,583.18

66,92,920.00

1,10,05,191.00

1,60,08,774.18

Break Up Of Initial Investments

1. Rent: 10 month rent is taken in advance. The place is near Mahindra showroom 80 ft. road Kormangla. The area is 1800 sq ft. costing 70 per sq ft. It is ground floor. The name of the broker is Mohammad Salim.

2. Construction: The shelves which are required for the show room are constructed by the carpenter. The details are as follows:

NAME

SIZE QUANTITY

OR NUMBER ITEMS

OF AMOUNT

Century Plywood

8X4 SIZE (Rs 67 15 per foot)

32,160.00

Beet (Margins)

25 foot (Rs 3 per 100 foot)

7,500.00

Fevicol Miscellaneous

50 kg (Rs.5050) -

2 -

10,100.00 6,500.00

More over the carpenter cost is also included. The coast of per carpenter per day will come up to Rs 550 for 10 hours per day. Therefore there will be three carpenters for forty five days constructing shelves. The contract is given to SHANTY CARPENTERS at 100 ft. ring road in Bangalore.

3. Interior designer: The contract of interior designer is given to Mr. LalitAgarwal who is the part of Century architects and interior designer in Bangalore. According to the agreement he is charging 7 percent of the entire execution i.e. the construction cost, glasses cost and the lightening cost.

4. Desktops and printer: Required for making detailed bills for the customers served and for this purpose, we will require one desktop to provide with detailed bills and also1 desktop for maintaining accounts and other office information. The configuration for the Desktop is as follows: Acer Laptop, AMD processor Athelon 4200, 1.86 GHz dual core Acer751, Ram 1 GB DDR2, HD 160 GB with 15 TFT monitor and a DVD writer, Rs 54,000/- (inclusive of taxes) and a printer is purchased from hp for the printing of the bills whoso cost will come up to Rs.3,990.

5. Air conditioner: 3 split a/c, Haier Air conditioner, HC18DIVAR, 1.5 ton, 15 SEER is provided. The air conditioner is the one which will provide the customer with the special care and a different experience.

6. Furniture and fixtures: The details of the furniture are as follows:

Name

Price (per pc)

Quantity

Amount Rs)

(in

Library almirah Library (3x5) Library (3x6)

8,200.00

7.00 5.00

57,400.00 29,000.00

table 5,800.00

table 6,500.00

4.00

26,000.00

Chair rest

with

arm 975.00

15.00

14,625.00

Chair without arm 850.00 rest Accountants chair Book 1,850.00

20.00

17,000.00

2.00 4.00

3,700.00 20,800.00

shelves 5,200.00

display model Special model Total 2,04,525.00 display 1,2000.00 3.00 36,000.00

The entire rate has been taken from Maruthi Nagar Almirah suppliers who specialises in selling library equipment.

7. Newspapers: The advance for the newspaper is given for the library. There are number of newspaper that we will be having for library. Name TIMES OF INDIA ECONOMIC TIMES DECCAN HERALD DNA MINT FINANCIAL CHRONICLE Quantity 2.00 2.00 2.00 2.00 2.00 2.00

8. Security: Defender DFDVR2 Ultra Compact Internet Accessible DVR Security System, Digital Video Recorder with Built-in 7" LCD and 4 Hi-Res Indoor/Outdoor Night Vision Surveillance Camera. Kidde FA110 Multi Purpose Fire Extinguisher 1A10BC.

9. Lights and fan: The different variety of lights and fan are used for the showroom and library:

Name Grizzly Vornado

Quantity 25.00 12.00

Cost per pc 233.00 1880.00

Amount 5825.00 22,560.00

10. Library legal expense: The library is registered under the state government. The license is valid for six years.

11. Marketing expense: The detail break up of marketing is as follows:

The break of first strategy:

Name DNA TIMES OF INDIA

Size 8x6(middle page) 8x6( Bangalore times)

Amount 5,99,040.00 4,83,840.00

DNA will be publishing our advertisement once a week and we going to publish for three months continuously. Therefore the cost per week comes up to 49,920. Times of India, we are going to put our advertisement once a week for a month. The cost of per week comes up to 1,20,960. Online directories will be charging 18,000 for a year as advance. The breakup of radio advertisement is as follows:

RADIO ONE INDIGO

2000.00 per day 3,000.00 per day

60,000.00 90,000.00

The advertisement with radio will be done for the month. The distribution of pamphlets will play an important role. The cost of per pamphlet is 1.16 per pc. The number of pamphlets ordered is 20,000.

Calculation on Return of Magazines

The return is calculated on the basis that 5 percent will be returned back to the dealer in the worst case scenario.

BUSINESS:
NAME Smart money Fortune Harvard business review Business week Financial times Brand week Money adviser Business opportunity Tea & coffee trade journal The investor Indian journal of economics ( once in 6 months) Business India India today News week Fortune money Outlook The week Time Treasury management Modern medicare Frontline Franchising world Outlook money Business Today Outlook business Outlook profit Outlook The economist Pitch Scientific American Time QTY RETURNED 3 8 1 13 26 3 1 1 1 1 0 RATE 45.00 50.00 310.00 50.00 15.00 155.00 115.00 270.00 190.00 500.00 2,350.00 AMOUNT 135.00 400.00 310.00 650.00 390.00 465.00 115.00 270.00 190.00 500.00 -

1 130 78 26 130 52 26 1 1 78 3 33 39 39 26 130 8 3 0 13

230.00 25.00 25.00 50.00 15.00 15.00 55.00 125.00 330.00 20.00 35.00 65.00 25.00 20.00 50.00 25.00 200.00 45.00 100.00 100.00

230.00 3,250.00 1,950.00 1,300.00 1,950.00 780.00 1,430.00 125.00 330.00 1,560.00 105.00 2,145.00 975.00 780.00 1,300.00 3,250.00 1,600.00 135.00 1,300.00

Franchise Plus Money today Electronics for you Franchising world Usp age Capital Market Cinema systems Time Dataquest Indian Real estate Consumer Voice Benefit Brand reporter Retail Biz TOTAL

0 13 1 1 1 3 1 12 7 7 1 1 3 1

30.00 30.00 40.00 50.00 40.00 50.00 75.00 180.00 25.00 100.00 50.00 50.00 20.00 75.00

390.00 40.00 50.00 40.00 150.00 75.00 2,160.00 175.00 700.00 50.00 50.00 60.00 75.00 31,935.00

AUTOMOBILES:
NAME Car driver Road track Motor trend Dream big Hot road Rider Motor cycle Car draft Motor cross European car F1 Hot rodding 4 wheel Factory rides Classic trucks Motor cycling Hot bike Motor cross Chevy ( project cars) Mopar Road racing world Top gear Cornette fever Evo lotus Off road QTY RETURNED 3 1 1 1 3 3 3 2 1 6 6 2 3 1 1 3 6 1 3 2 2 3 6 1 2 RATE 47.00 47.00 40.00 40.00 55.00 47.00 86.00 47.00 60.00 47.00 280.00 60.00 47.00 47.00 90.00 120.00 85.00 80.00 70.00 180.00 80.00 650.00 110.00 490.00 160.00 AMOUNT 141.00 47.00 40.00 40.00 165.00 141.00 258.00 94.00 60.00 282.00 1,680.00 120.00 141.00 47.00 90.00 360.00 510.00 80.00 210.00 360.00 160.00 1,950.00 660.00 490.00 320.00

Auto spot Ruf stuff Car collector 4 wheel drive Rally cross Show goer Bike Automotive new TOTAL

3 1 3 1 1 3 2 1

47.00 560.00 117.00 150.00 410.00 100.00 550.00 145.00

141.00 560.00 351.00 150.00 410.00 300.00 1,100.00 145.00 11,603.00

LIFE STYLE AND ENTERTAINMENT:

NAME Blender And persand Better interiors People Savvy Showtime Complete wellbeing Shoes Elle Hair M Cine Blitz Hi Blitz Ok Blitz Time Out Bengaluru FHM Womens era Jade Filmfare Men s health Femina Hello Grazia Cosmopolitan Prevention Stardust Society Vogue GQ TOTAL QTY RETURNED 2 3 1 39 6 15 3 2 6 1 2 30 9 6 7 6 13 1 65 6 65 3 1 6 1 18 2 9 3 RATE 100.00 100.00 75.00 30.00 50.00 50.00 75.00 100.00 75.00 50.00 75.00 50.00 100.00 100.00 30.00 100.00 30.00 100.00 30.00 100.00 40.00 100.00 75.00 100.00 100.00 50.00 50.00 100.00 100.00 AMOUNT 200.00 300.00 75.00 1,170.00 300.00 750.00 225.00 200.00 450.00 50.00 150.00 1,500.00 900.00 600.00 210.00 600.00 3,900.00 100.00 1,950.00 600.00 2,600.00 300.00 75.00 600.00 100.00 900.00 100.00 900.00 300.00 16,595.00

CHILDREN COMICS:
NAME Chitra Katha ChachaChaudhary Comic digest Biloo Chandamama Disney Little words Champak Tinkle Tinkle digest
TOTAL

QTY RETURNED 6 9 12 6 6 6 6 12 39 12

RATE 25.00 20.00 40.00 20.00 25.00 50.00 20.00 15.00 20.00 40.00

AMOUNT 150.00 180.00 480.00 120.00 150.00 300.00 120.00 180.00 780.00 480.00 2,940.00

SPORTS AND TRAVEL:

NAME Asian photography Discover India Travel + leisure Overdrive Outlook traveller Cricket today CV Selling World Travel Golf Digest Golf style Travel plus T3 Good Housekeeping QTY RETURNED 1 2 1 6 3 9 1 1 2 2 3 6 2 RATE 50.00 100.00 150.00 100.00 60.00 40.00 100.00 50.00 100.00 150.00 100.00 100.00 75.00 AMOUNT 50.00 200.00 150.00 600.00 180.00 360.00 100.00 50.00 200.00 300.00 300.00 600.00 150.00 3,240.00