Sitara Showroom [A business Plan]

7/28/2019 Sitara Showroom [A business Plan]

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The owner Mr:Younis Memon has permitted all the information presented in the case can be used for academic purpose like

class discussion, reading and so on(all right reserved).

SITARA SHOWROOM

Introduction of the business:

Sitara showroom is located in Sukkur, Sindh .This business basically initiated by well experienced

business community of Memon in Sukkur .Sitara Showroom established in 2007 by Mr:Younis Memon

as per need of customer of Sukkur .This type of business is difficult to manage because of massive

amount of local competitors already pre-occupied this segment of market as offering cloths,cosmetics

and general items available for both gents and ladies. We have found more competitors offering the

same services as offered by Sitara Showrrom .Sitara showroom has a vision of Providing rapid

response to the customers as to save time and reduce employees idol time Sitara Showroom.

By interviewing with the owner of business he justified his vision that owner wants real purchaser

than window shoppers because window shopper is a big trend in Sukkur .Customers waste 2 to 3

hours purchasing items which means for employees more time and consequently less number of

customer per day Sitara showroom can be serve, which is very harmful for business. In order to make

customer purchase rapidly, the owner has removed extra luxury setup on the other hand increased

the shelf display of cloths so that customer can watch more cloths and colors therefore buy promptly.

Prices are fixed at Sitara showroom so that bargaining can be avoided.

Initially business was launched at Jinnah cloths market, sir Adamji Road Sukkur near Bandar road.

Most of shops in Adamji market offering different wholesale services to all local retailer of Sukkur.

Mr: Younis Memon has an idea that there should not any wastage of time by business or by cutomer.

Due to that he located all facilities that can save time. Employees are trained they can understand

quickly the preferences of customers and deal accordingly. The target market of Sitara Showroom are

landlord, professionals and all upper middle class. Upper middle class customer is very common and

profitable for every business operating in line there ratio is high in Sukkur. The role Sitara Showroom

is now changed from wholesaler to retailer. But Mr:Younis experience of business compelled him to

operate Sitara showroom as retailer and wholesaler, because wholesaler have to perform more

difficult task like transporting products from supplier to wharehouse and all the responsibility comes

on the shoulder of wholesaler to keep safe every sku(stock keeping units), in case of any spoilage

wholesaler is responsible.

Secondly wholesaler earns very less margins whereas retailer earn high profits and less resposibily of

SKUs .In the case of defective items they sent back to wholesaler ,so these both causes, Mr:younis to

go for retailer plus wholesaler operations.

Learning from lose:

Once the massive amount of inventory spoiled in warehouse due to extreme raining which caused

much of inventory spoilage and consequently Sitara Showroom faced great losses of holding inventory

on the other hand cost of inventorying is more and till to the selling of items all the investment is at

great risk. Due to great loss in warehousing Mr:Younis has changed the role of business from

wholesaler to retailer .Now its services are purely like a retailers store.


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List of major products offered by Sitara showroom:

For gents:

1-Gents Kurtas, Shilwar kammez( it is the type of current sindhi dress).

2-shirt piece, means high quality of shirt cloths is available(unsewed).

3-high quality of dress paints for students and professional are available.

4-Ready made funcky and qualitative jeans.

5- cloths pieces for two piece.

7-Variety of the coat cloth pieces are available. And other products.

Ladies items:

Special loan (type of cloth piece), Cotton, and other varieties of cloths suits:

2-ladies purses bridal purse,bridal cloths available with different varieties and colors

4-hand bag,night dresses and many type of ladies garment are availiable.

General items

1-Towels, bed sheets and blanket, Child care products, gift items perfume and body spray like.

Above are major products offered by Sitara Showroom . The uniqueness of Sitara showroom is that it

provide customer with greater veriety and all the products comes from proper channels.

Supply chain of Sitara Showroom:

Mr: Younis has more experience of business in Sukkur so he already built good relationship with

supplier rather trusting(rapport) relationship with them.

Supply chain (Major Supplier):

Supplier one:

1-Procter and gamble, Uniliver, E-tute, saeed ghani, GSK

SUPPLIER 2:

Supplier two:

Every type of clothes

(Un-sewed)

Supplier one:

Garments and Cosmetics.

SITARA SHOWROOM


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Gul ahmad, AL-karam,sitara textile,baoojee

All are major supplier of Sitara showroom.

Challenges Sitara Showroom is facing:

Three main challenges faced by Sitara Showroom

At the initial stage of choosing appropriate supplier, owner did not know more about the suppliers

therefore Mr:Younis was embarrassed in selecting the best supplier somehow he has sacrificed or

compromised over quality unintentionally which customer didnt needed.

Secondly, the place where sitara showroom located is more familiar as a wholesaler market while the

owner changed the role business from wholsaller to retailer. Customer prefer shooping in local

market rather than coming to the Adamjee road.Hard to meet with customer .

Thirdly,lack of awareness of Sitara Showroom itself and its offerings.

Financial perspective:

The owner has reported below financial facts of business

He divided the whole year into two season as seasonal and non season.season start from September

to January remaining is non-seasonal (February to august). According to owner in season the sales and

ultimate profit maximize commulative sale of five months of season is more than non-season.

Secondly in mid of 2008 Sitara showroom reach at break-even point (revenue=cost).it means all the

cost was covered in that year.

Total investment in business reported 400 million which include all the expenditure of acquiring land

building, equipment and other expenses.

7 people are working in Sitara Showroom.

Monthly sales:

Seasonal non-seasonal

Sales 2600000 62000000

Profit 260000 6200000

According to Mr:Younis Memon they earn standard 10% profit of their sales.

Conclusion:

Mr:Younis Memon is very hard worker, who has established a profitable business in Sukkur area.

Whereas he has expanded his business, initially Sitara Showroom has just one floor now it has 1st

floor


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added to ground floor of building. It means the business is more profitable .Not only this but Sitara

Showroom offers all product qualitative to the customer its customer base is increasing gradually in

current situation. The product base has also surged dramatically, as per customer preferences are

available. In spite of several losses the person has brought the business at higher level, now they are

dealing with more profits.

END

Q1: Which channels Sitara Showroom should adopt to market its presence and products?and

why(those channels)?

Q2: Suggest ways to improve services of Sitara showroom?

Documents

Sitara Showroom [A business Plan]