Travel shoppie

Objective and need Objective one stop shop for all types of travel accessories especially for

adventure /leisure travelers .

Need • Increase in number of travelers• time and search costs

Retail channel - Brick and mortar store, online store

Competition – No prominent players , mostly click and mortar stores like outdoorgear.com

Products and services offered

• Store sales ,corporate sales , online sales • Renting of certain one time use travel items

like tents , trekking tools, gears • Preparing a complete list of items necessary

for travel according to the location and offering as a package

TYPE OF PRODUCTS

Corporate sales

• Targeting the people who love travel in every major company across South India

• Targeting Schools and Colleges who are sending their students for Camps etc

• Targeting Police and Defence Sectors who are sending their forces for outdoor assignments

• Targeting Traveler's Clubs in India

• To get accreditation from any Recognized Body in the area of Travel

• To target Govt. agencies like IRCTC etc and travel agencies like thomas cook , raj travels

Location and infrastructure • Store in main shopping areas in 7 Cities

(chennai,coimbatore , hyderabad,bangalore ,kochi,trivandrum , vizag )

• Store size – 2400 sq ft• Car parking • Warehouse and office in the same building as

the store • Centralised warehouse in chennai• Building taken on 5 years lease

RETAIL ATMOSPHERICS

• Lighting- Bright lighting • Store design- sample of every product will be

displayed in racks spaciously• Wall - Posters of the product being in the

actual usage by travellers• Air conditioning- welcoming• Audio- peppy numbers boosting the mood to

buy the travel items

Procurement and inventory

• Procurement from countries like china , taiwan , hong kong

• Procurement every 6 months • Order for new stock when older stock reaches

25% of initial level• Inventory monitoring and reporting every week• Receipt of goods 7-10 days from the date of

order • Logistics outsourced

PricingWhat costs do specialty stores consider when determining prices?

Fixed cost Remains the same regardless of number of customers. e.g. salaries, rent

Variable cost Determined by the number of customers and products offered. e.g. delivery costs

Fixed cost very high as compared to variable cost

Cost of providing service is difficult to measure

Concentrating on gaining customer loyalty through consistent value and good transaction experiences thereby increasing promotional deals or loyalty programs.

PricingSteps involved in Pricing

1. Segmenting the market2. Finding Fixed and variable cost3. Knowing the profit margin and prices to be set4. Customer preferences

Pricing strategy followed would be Markup or Margin Selling and Pricing

Total cost = Fixed cost + Variable cost

Cost Per item = Total cost/No. of items (excluding the purchase price of items)

Price = Product Purchased Price + Cost Per item + Profit margin

e.g. If cost/selling is 0.9, the margin is ten percent.For all products sold, minimum of 10% margin is maintained.

Employees• 4 employees in every store

• 1 – store manager

• 3 other employees – sales , store keeping , billing • 1 security personnel – security services outsourced

• Ample training on knowledge about the product and proper customer service

• Compensation according to industry standards , benefits like medical insurance ,bonus during festivals , education fees for their children

Promotions and advertising

• TV ad in regional channels , print ads in local newspapers

• Online ads in travel related sites • Higher ranking in google search • Discounts for bulk booking• Showcasing in lifestyle and travel related trade

shows• Ads in tickets• Recommendations from travel agencies

Customer relationship management

• Maintaining customer database • Presence in social networking sites• Online discussion forums• Travelers club

Future Plans & Other ServicesReturn , warranty , service /product recovery :

Consumers have two options for in-warranty replacement of defective products

Return the product to our store for a replacement or refund within the warranty/guarantee period.

we Return directly to Manufacturer for replacement product and get it back within a week

Guarantee period – 1year

Future Plans:

expansion of the retail store at various locations profitably

Set up our own manufacturing unit

Cheaper version and customised design of some products to suit our Indian customers

THANK YOU