Business Plan for FirstCry: Online Market for Kids

This business plan covers the planning, execution, and financial projections of FirstCry, an online market selling kids materials. It explores market analysis, competition, marketing mix, and provides financial projections. The core value proposition is to provide all kids' products at one place, easing the work of parents. The market segment includes newborn babies, and the target market is UK, Ireland, and Scotland. The business operates in a highly dynamic environment with competition from existing players like Amazon and eBay. The marketing mix includes product variety, reasonable prices, online and social media platforms, and search engine and social media marketing. The financial plan includes start-up costs, projected income statement, balance sheet, and shareholder's equity.

BUSINESS PLAN

EXECUTIVE SUMMARY
Business plan would cover planning , execution and the financial projections of the
FirstCry that is online market selling the kids materials from toys to clothes, everything related to
the kids at one place. Plan would be exploring market need identifying segments that would be
targeted for business. The market analysis will provide feasibility of plan evaluating the current
market players, competition and exploring USP for FirstCry. It will also evaluate the strengths
and weaknesses of plan and explore future opportunities and threats that could be faced by
business. business plan will also provide the roles and responsibilities. Financial projections are
also presented at end considering the different risks and contingencies related to the business.

TABLE OF CONTENTS
EXECUTIVE SUMMARY ............................................................................................................2
INTRODUCTION ..........................................................................................................................1
Business Model ...........................................................................................................................1
Market Segmentation ..................................................................................................................1
Core Value proposition ...............................................................................................................2
Industry and Market Analysis .....................................................................................................2
Competition Analysis ..................................................................................................................4
Marketing Mix ............................................................................................................................4
SWOT analysis ...........................................................................................................................5
Financial Plan ..............................................................................................................................6
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business Model
FirstCry is online shopping platform that would be providing all the things for new born
babies and small kids upto 5 years. The idea came from the evaluation that there is no such
online platform where the parents could everything for their child at doorstep. There are big
online markets but they are not concentrated over kids. People could not leave their child for
buying their things. This gave rise to idea and idea for FirstCry is developed. It will allow the
parents to shop diapers, clothes, bottles, toys, blankets, small beds and everything that is used by
them. The online shopping will allow them to search a large variety from their home and get it at
their doorsteps (Kusumaningrum and Hidayat, 2016). It will provide toys and clothes of all the
varieties ranging from low to high prices. It is founded by passionate entrepreneurs who see it as
an opportunity to create a separate buying platform for babies and kids relaxing their parents to
go out for shopping. The products will be available both online and offline modes.
FirstCry is an online platform where it would enable the customers from around the globe
to visit the site and buy the baby products and items. The business will also open offline stores in
big supermarkets after one year. This will make the baby products available at both the modes.
Market Segmentation
It is essential for the entrepreneurs to understand that markets are not homogeneous. The
products are related to specific customer group that makes it very important for the business to
define the market segment for targeting potential customers. The segmentation will allow the
FirtsCry to focus its attention over target customer group and using strategies and resources in
particular direction.
Segmentation for potential customers
Market Segmentation
Demographics It defines the characteristics of the people of particular age group,
gender, income, culture and others.
FirstCry would focus over newborn babies attracting the parents of all
age group. The products are for both boys and girls. People with
income group of 15000 and above are targeted. No specific
background is focused so people from any culture could buy.
Psychographic It breaks the customers on their values, perceptions and beliefs relating
to different things. It influences the consumer buying behaviour like
social status, lifestyle, opinions and the activities.
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Fashion lovers, quality lovers
Cultural influenced baby products and items
Designer and eco-friendly toys and products
Quality and branded products for baby care like soap, shampoo, oil,
moisturiser etc.
Geographic It defined the areas which would be focused by the company.
FirstCry will cover customers of UK, Ireland and Scotland
Behavioural Online Shoppers
Doorstep delivery lovers
Quality products for babies
Require cultural and modern products for babies with best comfort.
Core Value proposition
It is hard for the parents having small babies to go out for shopping for each and every
thing for them. It is also difficult for them to find all the things for their babies or kids at one
place. They have to visit different stores or online sites for searching for products and yet they
may not find the right things. It will provide them with all the products for their kids and babies
at their home through online shopping. It would ease the work of parents and also the relatives
could shop from their homes for new babies to gift them without visiting (Berbegal-Mirabent,
Gil-Doménech and Alegre, 2016). The busy schedule do not provide enough time to people to go
for shopping. FirstCry provides clothes, toys and other necessaries at one place with best quality
that would attract large number of customers.
It is seen that online stores are growing at a very rapid speed and contributing significant
proportion to the GDP. As per reports from Mintel the consumers spendings would increase over
72.% in coming four years over online market. Around 68% of Britishers shop online for
different goods and services and the market is growing continuously with the trend making it
attractive investment idea.
Industry and Market Analysis
Business operates in highly dynamic environment that is prone to significant influences.
The external forces influencing the business have to be dealt very adequately to exist and survive
in the market adequately without any hurdles.
Pestle analysis of online retail business
Political
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It influences the business significantly as every company has to follow the policies and
frameworks established by the government. It is seen that the government has raised the tax rates
for earning revenues and meet infrastructure developments. Most significantly Brexit has
imposed various rules and things to be aware of. After the Brexit members of EU would be
charged for buying goods from UK which would reduce a considerable market share of business.
It poses serious threat to the businesses of UK.
Economic
It has been evaluated that Economy of UK is seeing decline in growth rate due to
uncertainties surrounding Brexit. The unemployment rate may rise due to new rules. Also the
high inflation and low income levels due to growth in unemployment would decrease the
consumer spendings (Gaik, 2018). It will also effect the foreign trade and investments from
fluctuations in the exchange rate of pound.
Social
Population of UK is becoming diverse and is accepting change at high level as compared
with other countries. Increase in living standards require people to get quality products and
services for them. The trend of groups influences the shopping habits to great extent that could
be taken as opportunities. Marketing strategies that directly connect with people and their feeling
will attract loyal customers.
Technological
The technological advancement is causing the companies to advance their business
processes and strategies. It is causing them to use tools and equipments that increase their
efficiency and productivity (Tipu, 2019). Online businesses have to use highly advanced
software to manage their websites and online customers. The website designs should be simple
and easy to access by customers.
Legal
The online business has to comply with number of rules and regulations due to increasing
issues related to cyber crimes. They have to protect the consumer information from cyber attacks
and misuse. They have to abide by the regulations established for cyber security and safety.
Environment
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Increasing environment awareness is making people to rely over companies who take
active measures for environment. As company would be using eco-friendly materials for their
products ensuring safety of children.
Competition Analysis
FirstCry is unique business idea as there is no existing online market place for the new
born babies. Parents have to search over products at different places and sites for the products
and services. It provides the people with large number of options at one place for A to Z needs of
the babies. It will be facing competition from the existing companies such as Amazon, eBay and
other online stores. These sites have variety of products and services for the babies but do not
specific category for babies (van Manen, 2017). The clothings and toys are available at all sites
but they provide the products for all kids and not specifically for babies. These competitors have
highly established customer base and have strong market recognition. FirstCry have to make
strong efforts to increase its recognition by high marketing and advertising and providing quality
products. These competitors are big but do not promise good quality of products.
Porter's Five Forces
Rivalry from existing
customers
The rivalry is low as no exiting online market place is there for the
business. Also low rivalry is seen because of the independent
supplier chains on Amazon and eBay
Threats of new entrants It is medium as requires considerable investments to be available
and create market recognition. Also there are various compliance
requirements.
Threats of substitutes It is high as number of products are already existing in market. It is
just providing a separate market.
Bargaining power of
buyers
It is high as products are available at number of sites. However
there is no existing platform that will moderate the power of
buyers (Moyo and Tetsiguia, 2020).
Bargaining power of
suppliers
It is low as number of suppliers are there providing quality goods
at low prices on bulk purchases. Decreasing growth will also
provide trade discounts.
Marketing Mix
A well designed Marketing Mix would be used by FirtCry to capture the market share.
Product
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 The online products for babies at one place
 Quality and standardised products at reasonable prices
 Ease in shopping from anywhere Doorstep delivery saving considerable time
Price
 Quality products encourage people to pay prices
 Additional charges for quick delivery
 It will be providing products at prices lower from market (Priyananth and Shonmugam,
2019). Penetration pricing strategy will be used
Place
 Online and website based
 Facility to purchase directly from social media platforms Available in UK, Ireland and Scotland
Promotions
 Search engine marketing
 Social media marketing
 Traditional marketing channels
SWOT analysis
Strengths Weaknesses
 Unique and new buying platform
 Provide all products for babies
 Fills the market gap clearly
 Growing and attractive
industry(Matović, 2020).
 Lack of direct competition
 Take time to mature
 Target market is small and specific.
 No previous case studies for similar
business
 Limited geographic region
Opportunities Threats
 Growing online industry will increase
revenues
 Will attract parents and customers for
high quality
 Increased search for better alternatives
for quality products
 Uncertainties of Brexit
 Increase in government regulations for
online business
 New entrants
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Financial Plan
FirstCry has evaluated the start up and funding and has also projected the profits and
revenues for 1st year.
Start up and Funding Costs
Start up costs and funding in GBP
Company registration 14
Purchase of Domain 230
Management Software 100
Website development 75
Office Rent 80
Office Furniture and Fixtures 60
Equipments 45
Wages and salaries 120
Warehouse lease 50
Warehouse furniture 36
Legal Expenses 25
Marketing activities 70
Launch Event 65
Stationary 30
Financial projection for year 1
Projected Income Statement
Projected Statement of Profit or Loss
Revenues
Sales 1015400
(Less sales return)
Cost of goods sold 720500
Opening Inventory 66600
Purchases (less returns) 732400
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Closing inventory 78500
Carriage Inwards 1300
Gross Profits 293600
Carriage outwards 2400
Advertising Expenses 10400
Consulting Fees 7600
Wages and salaries 4900
Interest on overdrawn balance 5500
Interest charges 8000
Administrative cost 19300
Depreciation building @ 2% 7600
Depreciation fixtures and equipment @
20%
(148000-12000)*20% 27200
Loss of equipment 7200
Net Profit 193500
Projected Balance sheet
Statement of Financial Position
ASSETS
Current Assets
Receivables 396100
Inventory 69200
Bank 15000
480300
Non Current Assets
Freehold Land 231200
Buildings 380000
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Fixtures and Equipment 136000
747200
TOTAL 1227500
EQUITY AND LIABILITIES
Current Liabilities
Payables 148600
Outstanding wages 4900
Outstanding interest on loan 8000
161500
Non Current Liabilities
8% long term loan 100000
Provision for depreciation – Building 107000
Provision for depreciation – Fix &
equipment 105600
(83200-4800 +27200)
312600
Total Liabilities 474100
Shareholder's Equity
Ordinary Share capital 200000
5% Preference share capital 200000
Retained Earnings
Opening 161100
Add : Profits 193500
Less : dividends -40000
Less : Personal expenses -92400
Share premium 100000
Closing balance 322200 322200
Shareholder's Equity 722200
TOTAL 1227500
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CONCLUSION
It could be concluded that above business plan will be successful as it is new idea. New
entrants will take time to enter into market and it could gain the advantage during that phase. The
company will be providing all products at one place which will solve various problems of
parents. Also the cost effective goods will enable it to attract customers. The marketing strategies
will increase the market recognition and brand awareness enabling to compete strongly.
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REFERENCES
Books and Journals
Kusumaningrum, I. and Hidayat, H., 2016. Learning Outcomes in Vocational Education: A
Business Plan Development by Production-Based Learning Model
Approach. International Journal of Environmental and Science Education. 11(18).
pp.11917-11930.
Berbegal-Mirabent, J., Gil-Doménech, D. and Alegre, I., 2016. Improving business plan
development and entrepreneurial skills through a project-based activity. Journal of
Entrepreneurship Education. 19(2). p.89.
Gaik, S., 2018. Theory and practice of a business plan development for an innovative project.
Tipu, S.A.A., 2019. Business plan competitions in developed and emerging economies. Journal
of Entrepreneurship in Emerging Economies.
van Manen, M.A., 2017. The first cry of the child. Qualitative Health Research. 27(7). pp.1069-
1076.
Moyo, G.P.K. and Tetsiguia, J.R.M., 2020. Discussing the “First Cry” as an Initial Assessment
for Neonates. American Journal of Pediatrics. 6(2). pp.129-132.
Priyananth, D. and Shonmugam, N., 2019. Baby’s First Cry: A Prognostic Study by Varmam
Therapy. Journal of Ayurveda and Integrated Medical Sciences (ISSN 2456-3110). 4(1).
pp.20-25.
Matović, I.M., 2020, June. Evolution of the Business Plan in Contemporary Business.
In Proceedings of the 17th International RAIS Conference on Social Sciences and
Humanities (pp. 71-76). Scientia Moralitas Research Institute.
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