Dr. Jane Cleofe Panaligan
Entrepreneurship HO2
AGSB MBA-H
Prof. Jorge Saguinsin
DAILY'S AUTOMATED SARI-SARI STORE
Daily's Automated Sari Sari Store is the sari-sari store of the 21st Century future, fulfilling a need that will continue to exist into the future - the need for speed. It will be the first fully automated, 24 hour sari-sari store that is more like an enormous dispensing machine than the traditional store. It expects to capture market share by becoming the low cost leader in the convenience store industry by significantly reducing one of the primary expenses, which is labor. The possibilities for expansion are excellent not only in the local area, but in neighboring communities as well.
Daily's Automated Sari Sari Store is the sari-sari store of the 21st Century future, fulfilling a need that will continue to exist into the future - the need for speed. It will be the first fully automated, 24 hour sari-sari store that is more like an enormous dispensing machine than the traditional store. It expects to capture market share by becoming the low cost leader in the convenience store industry by significantly reducing one of the primary expenses, which is labor. The possibilities for expansion are excellent not only in the local area, but in neighboring communities as well.
The Ownership
It is a single proprietorship start-up business. Daily's is expected to open its first store in 6205 Einthoven cor Dian St., Palanan, Makati City by January 2017.
It is a single proprietorship start-up business. Daily's is expected to open its first store in 6205 Einthoven cor Dian St., Palanan, Makati City by January 2017.
The Products/Services
Daily's automated Sari-Sari Store will sell the same products as other sari-sari stores in the same packaging sizes, quality, and quantity as other stores. This includes soft drinks, fruit juices, sport drinks, hot and cold snacks, a limited number of grocery items such as canned soups, microwaveable meals, condiments, bread, house cleaning supplies, pet supplies, paper products, toothpaste, etc. Likewise, Daily's is looking into ways to sell restricted items such as beer, wine, and cigarettes.
Daily's automated Sari-Sari Store will sell the same products as other sari-sari stores in the same packaging sizes, quality, and quantity as other stores. This includes soft drinks, fruit juices, sport drinks, hot and cold snacks, a limited number of grocery items such as canned soups, microwaveable meals, condiments, bread, house cleaning supplies, pet supplies, paper products, toothpaste, etc. Likewise, Daily's is looking into ways to sell restricted items such as beer, wine, and cigarettes.
All products will be locally or nationally branded. In addition each computerized transaction machine can dispense cash, phone cards and other coupons and will have the ability to create personal accounts that can display preferred items, retain shopping lists and other services.
The Market
In this age of supermarkets and hypermarkets, why are sari-sari stores still relevant to categories such as snack foods? The sari-sari stores in the Philippines continue to serve as the pantry extension of about 20 households each. Hence, the outlet type remains as an important retail channel contributing 36% of fast-moving consumer goods (FMCG) peso sales. As of June 2014, an average sari-sari store can sell FMCG products amounting to Php26,000 a month, about Php5,000 more than the average two years ago.
In this age of supermarkets and hypermarkets, why are sari-sari stores still relevant to categories such as snack foods? The sari-sari stores in the Philippines continue to serve as the pantry extension of about 20 households each. Hence, the outlet type remains as an important retail channel contributing 36% of fast-moving consumer goods (FMCG) peso sales. As of June 2014, an average sari-sari store can sell FMCG products amounting to Php26,000 a month, about Php5,000 more than the average two years ago.
Financial Considerations
The start-up requirements come to 2-3Million Pesos, which are largely single time fees associated with opening the store. It should be noted that we expect to be operating at a loss for the first six months before advertising begins to take effect and draw in customers.
The start-up requirements come to 2-3Million Pesos, which are largely single time fees associated with opening the store. It should be noted that we expect to be operating at a loss for the first six months before advertising begins to take effect and draw in customers.
Daily's Automated Sari-Sari Store will be receiving periodic influxes of cash in order to cover operating expenses during the first two years as it strives toward sustainable profitability. Almost all of this funding has been arranged through bank loan. We do not anticipate any cash flow problems during the next three years.
Objectives
These are the goals for the next three years:
· Achieve profitability by July Year 1;
· Earn approximately 2M pesos in sales by Year 3;
· Start up second store by Year 4.
Mission
The primary objective is to create a new and revolutionary distribution outlet that will significantly reduce prices for its customers and provide greater services with an equal level of quality. It seeks to be first to market with this daring new idea so as to capture market share and create greater than average profits.
Keys to Success
In order to survive and expand, Daily's Automated Sari-Sari Store must keep the following issues in mind:
· attain a high level of visibility through the media, billboards, and other
advertising.
· establish rigid procedures for cost control and incentives for maintaining tight
control.
· expend a significant amount on innovation in order to constantly be able to
offer better and greater products and services.
Strategy and Implementation Program
Daily's Automated Sari-Sari Store's competitive edge will be the lower prices we will charge our customers and the novel purchasing experience that will draw shoppers. The most critical element of Daily's success will be its marketing and advertising. In order to capture attention and sales it will use prominent signs at the store locations, billboards, media bites on local news, and radio advertisements to capture customers.
Many of the initial customers will be drawn to the unique nature of the store and will then have the opportunity to realize the cost savings of Daily's.
Sales Forecast
Financial Plan
Projected Profit and Loss
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