Sales Management Module BM3150 SLIIT Faculty of Business

Submission Date- 12th of April 2020 2|Page Grocery Mart Lanka Maheshini Weerasekera CEO Grocery Mart Lanka Address- Grocery Mart Lanka143/D,Sooriya Mawatha, Koswatta [e-mail] Tel- 011 255 8965 3|Page Acknowledgement.........................................................................5 Executive Summary.6 Company description 7 Market analysis.8-11 Market segmentation Market research findings . Profit and loss

Business Plan
Sales Management Module
BM3150
SLIIT – Faculty of Business
Department of Business Management
/ BBA (Honors) Specializing in Marketing Management
Faculty of Business
1 | P a g e

Submission of Individual Assignment
1. Course: BBA (Hons) Specializing in Marketing Management
2. Student Name and BM number- P.M.K Weerasekera
3. Year: 03
4. Semester: 01
5. Module Code: BM3150
1. Module Name: Sales Management
2. Lecturer-in-charge: Prof Dr.Nagalingam Nagendrakumar
3. Title of assignment: Business Plan
4. Submission Date- 12th of April 2020
2 | P a g e

Grocery Mart
Lanka
3 | P a g e
Maheshini Weerasekera CEO
Grocery Mart Lanka
Address- Grocery Mart
Lanka143/D,Sooriya
Mawatha, Koswatta
Website-
www.Grocerymart.lk
Email-
[e-mail]
Tel- 011 255 8965

Table of Contents
Acknowledgement……………………………………………………………………………………………5
Executive
Summary.............................................................................................................6
Company description..............................................................................................7
Market analysis.................................................................................................8-11
Market segmentation..............................................................................................
Market research findings.........................................................................................
Organisation and Management...........................................................................12-14
Service ............................................................................................................15
Marketing and Sales.........................................................................................16-18
Funding Request.............................................................................................19-21
Financial Projections.................................................................................................
Profit and loss account.......................................................................................22
Balance sheet...................................................................................................23
4 | P a g e

Acknowledgement
I would like to express my special thanks to our Sales management lecturer Prof
Dr.Nagalingam Nagendrakumar who allowed me to do an assignment regarding Business
plan .This gave me much more particle knowledge about this module. Therefore I would
able to deeply explore the module.
Secondly, I would like to express my gratitude for my batch mates who gave their big
support to finish this assignment. Finally, I would like to express my thanks to the people
who supported me directly and indirectly to finish this assignment.
5 | P a g e

Executive Summary
Grocery mart Lanka is an unpaid app which has around 20 registered grocery stores around
Battaramulla, Koswatta and Pelawatta that will provide users to order groceries through a
smartphone or a tablet that will also be involved drive-through system and home delivery service.
Grocery mart Lanka will retail a wide range of durable goods and non – durable goods at affordable
prices from different brands. We will take part in retailing general lines of nourishment items,
including vegetables, poultry and fish, canned and solidified nourishment s , new leafy foods,
different dairy products and essential grocery products.
The main benefit of this app is even when users are not at home they can place the order from
wherever they are and it provides the drive-through system which helps the customers to select
their favourite and most convenient grocery shop and they can provide a convenient date and time
to collect their order from the selected grocery store.
The app is connected to register 20 grocery shops in the region and we are placing counter assistant
for each grocery shops who will be representing our company and he/she will be collecting the
information of the orders through the app and they will pack the orders and send it to the drive-
through counter. Customers can collect their orders during the selected time and the payment
should do online or if they are using the home delivery option they can select the cash/card on
delivery method. Our motive is to promote the online grocery shopping and the drive-through
system to the customers since it's a new concept for Sri Lanka and this system will save the time of
the customers.
6 | P a g e

Company Description
Grocery mart Lanka is a start-up business which is a concept of Maheshini weerasekera a Marketing
graduate of SLIIT faculty of business and the company team is consists of 10 members. Grocery mart
Lanka is both the name of the company and the first service that this company will be launching. We
are aware that there are several large and small chains of supermarket/grocery store outlets in the
region but they are unable to provide the drive-through system or home delivery service due to lack
of resources also we focused on only grocery shops in the region without the supermarkets because
we think it will encourage the small business owners as well. As a starting point, we are planned to
provide the service for a specific region. And our ultimate vision is to expand our service in another
2-3 years island widely and promote the online grocery shopping to the Sri Lankans.
We will have access in our store a wide scope of strong merchandise and non – solid products at a
reasonable price.
Our items and administrations contributions are recorded underneath;
 Fruits and vegetables
 Grams, Sugar, Rice
 Spices
 Fresh and frozen meat
 dairy products
 beverages
 frozen food items
 Health and sanitary products
 Other grocery items
Our company will be mainly focusing on investing in the technological resources which will be
important to the grocery owners.
7 | P a g e

Market analysis
Target Market
Grocery store business has been in presence for whatever length of time that human began
exchanging products, yet one thing is sure, the grocery store business is as yet advancing. The
introduction of online grocery ordering service and drive through system will indeed help in
reshaping the industry.
We are in business to retail (Drive through and home delivery system) a wide range of groceries to
the following groups of people;
 Households
 Employees
 About to wed couples
 Expectant Mothers
 Students
 Tourists
If we consider the audience of the market we can segment them based on the following categories,
1. Demographic segmentation
Before we segment the target market into demographic segmentation we had to collect
demographic data to understand the customers and their needs .therefore we had to do a
survey, in this survey we have included the most useful questions which are beneficial and easy
for us to understand our customers. The questions were based on age, gender, and income. Our
survey was conducted for families in Battaramulla, Koswatta, Pelawatta.
8 | P a g e

1. Age
Our main target age group was 30-60 because in every family the people who are in that age
group tend to do the grocery shopping. After the survey, we were able to understand that if we
launch an app which provides drive-through or home delivery service system, even the people
who are in the age group of 18-30 will interested to use this app. We were able to collect the
following information from 220 people around the region
9%
36
%
55
%
Age Count of people are in Battaramulla, Koswatta and
Pelewatta
Age 4- 17 Age 18-30 Age 30-60
2%
40
%58
%
Age Count of people who would like to use the service
Age 4- 17 Age 18-30 Age 30-60
9 | P a g e

From the pie chart it is clear that the people in the age group of 30-60 would like to use
this service most. And 40% of people in the age group of 18-30 would like to use our
service.
2. Gender
After the survey, we were able to collect the following information regarding the count of gender in
the areas of Battaramulla, Koswatta and Pelewatta and which gender would mostly like to use this
service.
Male
45%Female
55%
Gender count of people who would like to use the service
3. Income
Income is an important factor when considering the target market. Our minimum target income
from a family is 20000 per family. After the survey, we got to know that each family would spend
around 3000 -10000 for their groceries per week. This will change with the occupations of
people in the region.
9%
91%
Monthly Income of families who would like to use the
service
Below Rs.20000 Above Rs.20000
10 | P a g e

Competitors
Since the grocery mart Lanka app is made for a specific region there are no other competitors in this
region which provide the same service but companies like Kapruka.lk, Keells, Grocerypal provides
the grocery delivery service islandwide. However the grocery drive-through system is a new concept
to Sri Lanka, there are no competitors in our market. But there is a potential of having competitors in
the nearby future since we are planning to expand the business island-wide. Therefore survive in the
market in the coming time we should be keen and aware of the external environment while
developing the business.
Swot Analysis
Strengths Weaknesses
Skilled and qualified staff
Having a good vision and mission
Knowledge of current market
Knowledge of the target market
Resource gaps and problems
Financial problems
Poor communication among staff
Opportunities Threats
A new concept to the market
No competitors for the drive-through
service
Support of the Grocery business owners
in the region
Future competitors
Government rules and regulations
11 | P a g e

Organization and management
Although our grocery home delivery services business is limited 3 towns, we will ensure that we put
the right structure in place that will help the kind of growth that we have in mind while assembling
the business.
We will secure that we recruit people that are qualified, customer-oriented and are ready to work to
help us build a wealthy business that will beneficial for all the stakeholders (the owners, workforce,
and customers). The profit-sharing arrangement will be handled by our senior management staff.
We ensure that our team is well qualified and skilled to occupy the following positions that will be
made available at Grocery mart Lanka.
Chief Executive officer -CEO .Maheshini Weerasekera
BBA(Hons) in Sales and Marketing/CIM
Sales and Marketing manager Sampath Rathnayaka
BBA (Hons) in Sales and Marketing/CIM
Information technologist Visal Perera
BSc(Hons) in Software Engineering
Accounting and Finance Manager Ashan Fernando
Customer service executive Dilini Perera
Counter assistant for each registered
grocery shop
Drivers/Distributors
Responsibilities of the team
Chief Executive Officer – CEO:
• Increases the board's adequacy by enrolling, choosing, arranging, preparing,
training, advising, and teaching administrators; conveying esteems, systems, and goals;
doling out accountabilities
• Creates, conveys, and executes the association's vision, crucial, in the general
bearing.
• Responsible at fixing costs and marking business bargains
• Responsible for giving guidance for the organization
12 | P a g e

• Evaluates the achievement of the association
• Responsible for managing the smooth running of HR and authoritative errands for the
association
Sales and Marketing Manager
• Manages outside research and arrange all the inside wellsprings of data to hold the
associations' best clients and draw in new ones
• Models segment data and break down the volumes of value-based information created
by client buys
• Identifies and connects with new accomplices, and business openings.
• Identifies improvement openings; follows up on advancement leads and contacts;
takes an interest in the organizing and financing of undertakings.
• Responsible for regulating usage, advocate for the client's needs, and speak with
customers
• Develops, executes and assesses new designs for extending increment deals
Information Technologist
 Manages the organization website and social media accounts
 Maintain the e-commerce feature of the organization
 Responsible for installing and maintenance of software and hardware for the
organization
 Manages SEO, Web servers, e-commerce software and POS (point of sale)
systems
 Handles any other IT related duties
Client Service Executive
 Communicate with customers and engage with their issues ( App, e-mail, SMS or
phone)
 provides the customers with a personalized customer service experience of the
highest level
 Uses every opportunity to maintain the client’s interest in the company’s services
 Engage with customer complaints about the orders and delivery service
Drivers and Distributors
 Assists in loading and unloading grocery orders
 Keeps a record of vehicles and make sure the vehicles are outfitted with safety
equipment
 Engage with customers when delivering orders
 Collects and verifies delivery instructions
 Reports defects or accidents
Counter assistant
13 | P a g e

 Collect the information of orders
 Communicate with the grocery store owners about the orders
 Inform customers about the availability of goods through the app
 Responsible for all the activities In the drive-through counter handover the
correct order to the correct customer
Organizational Structure
14 | P a g e
CEO
Sales and
Marketing
Manager
Accounting and
Finance Manager
Customer service
executive
Information
Technologist
Counter Assistant Drivers and Distributors

Service
Grocery mart Lanka is an app which provides customers to order they're essential grocery
items through an app by using a smartphone or a tablet. Also be involved drive-through
system and home delivery service in the region of Battaramullla, Koswatta and Pelewatta.
User has to pay an annual fee of LKR500 to use this service.
The basic flow of the system
1. Download the app either from the Apple app store or from the Android app store.
2. User registers as a new user using the mobile application.
3. User logins to his/her account
4. User will be able to select their items with the required quantity and brand
5. User will be able to select their favourite registered grocery store in the list
6. User can place the required goods with the brand, quantity, payment method,
and select the method he/she would like to collect their order either drive-
through system or home delivery service
7. If the user is selecting the drive-through system they have to select a date and
the time they would like to collect their order also they have to use the card
payment method. Or else if the user is selecting home delivery service they can
use cash on delivery method.
8. Order will be directly sent to the selected grocery store in the area and the grocery
store counter assistant will collect the information of the orders and the assistant will
be sending the order to the grocery shop owner and inform the customer about the
availability of goods.
9. The assistant will be packing the orders and place in the counter according to the
orders.
10. Distributors will be handling the Home delivery orders and they will deliver the
hard copy of the bill along with the order.
11. Each bill will be sent to the customer as a soft copy as well through the app
12. Users will be able to get the information about their past orders, Download the
bills as a PDF document, track the orders and place complaints through the app.
15 | P a g e

Marketing and Sales
Marketing strategies
Pricing strategy
The main source of income for this company will be from users paying an annual fee of
500 to use this service. But the pricing strategy should reflect the prices of other apps in
this category. The other source of income will be the 30% commission from each
grocery store. We have discussed with the grocery store owners about the profit-sharing
system. Also, the might be possible to look at integrating some sort of advertising
feature into later versions of this app, but initially, the user interface needs to be as clean
as possible. This will increase the user experience and uplift people to use the app to
share their tips and recommendations with others.
.
Promotions
 In the introductory stage of grocery mart Lanka app we are planning to reduce
the annual fee of 500 to 250 to first 20 customers who register for this service.
Also, we will be distributing some vouchers worth of 500LKR to next 10
customers.
 The launch of this service will be supported by a well-designed website,
Instagram and also a Facebook profile.
 Encourage the use of word of mouth publicity from our loyal customers
 Advertise our grocery home delivery services business in our official website and
employ strategies that will help us pull traffic to the site
 Enlighten customers about the Grocery Drive through the system by organizing a
workshop since it’s a new concept for Sri Lankans.
16 | P a g e

Advertising
The ascent of Web 2.0 has made advertising to a particular objective market far simpler
and far less expensive than it used to be through increasingly conventional channels.
The utilization of these new channels should secure that the target market is reached
and that the product gets maximum exposure.
We are looking forward to doing the Product launch through an advertising campaign
on that day people will be able to get the information about the app through our team
and we will be distributing some leaflets about the service also a booklet along with the
app manual guide.
The advertising will be mainly done through social media like Facebook, Instagram and
YouTube, Besides, we will be advertising our app on Google ads. Our social media
target market is the age range of 18-30 because as per our research 40% people who
are in that age range would like to use this service and most of the people who are in
that age range using social media.
We will be using mass media methods to the customers who are in the age range of 30-
60 because we think the best way to promote the service to that target market is through
mass media methods like
 News articles - an article in a newspaper or an article on a website
 Radio
 Television
 Publications
 Newsletters
This app relies on user experiences so it is important that it is quickly adopted and users
start to share experiences.
Promotional strategy Expected business
improvement
Cost
($)
Target
launch
date
Social Media Low cost
Increase website traffic
Open new possibilities to the market
Global reach
10000 08/12/202
0
Mass Media
Reach a larger audience
Trustworthiness
Reach to the target market
30000 08/20/202
0
Advertising campaigns
Can enlighten customers easily
Ability to engage with the customer
directly
60000 08/25/202
0
17 | P a g e

Sales Strategy
We experts who have a good understanding of the supermarket and grocery industry to help us
develop marketing strategies that will help us achieve our business goal of winning a larger
percentage of the available market.
in other to continue to be in business and grow, we must continue to sell the groceries that are
available in our registered stores which is why we will go all out to legitimize or sales and marketing
team to deliver. In summary, Grocery mart Lanka will adopt the following sales and marketing
approach to win customers over.
 Introduce our grocery Drive-through services business by sending introductory letters
alongside our brochure to organizations, households and key stakeholders in Battaramulla,
Pelewatta and Koswatta
 Ensure that our grocery stores have a wide range of groceries from a different brand at all
times.
 Make use of attractive handbills about the app
 Position our signage / Flexi banners at strategic places around towns
 Create a loyalty plan that will permit us to reward our regular customers
Sales Leadership
Since our company is a start-up our sales department is consists of Sales and marketing manager and
his assistant. Our sales and marketing manager is Mr.Sampath Rathnayaka Sales and Marketing
graduate of CIM. He will be handling all the sections and activities regarding sales and marketing.
18 | P a g e

Funding Request
We are planning to launch our business on the 1 st of January 2021. Grocery mart Lanka, LLC is a
private business that is solely owned and financed by CEO Maheshini Weerasekera and her
immediate family members. A capital of 7,500,000LKR and 2 vehicles worth of 1,400,000LKR has
been contributed by the CEO.
Start-up costs
Development Costs Year 1—2021
Software development cost 100000
Software License 20000
Labour cost for the development team 80000
Cost for building the drive-through counter for 20 grocery stores 980000
Computers and tabs 300000
CCTV cameras 50000
Internet connection 10000
Smartphones 100000
1640,000
Operational costs Year 1- 2021
Marketing and Advertising 100000
promotions 80000
Total labour cost for the company team 1500000
Distribution cost for home delivery service Fuel 50000
Telephone bills 5000
App maintenance cost 10000
1745000
Total cost 3385000
19 | P a g e

Development Costs Year 1—
2021
Year 2-
2022
Year 3—
2023
Year 4—
2024
Year 5—
2025
Software development
cost
100000
Software License 20000
Labour cost for the
development team
80000
Cost for building the
drive-through counter for
20 grocery stores
980000
Computers and tabs 300000
CCTV cameras 50000
Internet connection 10000
Smartphones 100000
Operational costs
Marketing and
Advertising
100000 80000 50000 30000 80000
promotions 80000 60000 100000 60000 60000
Total labour cost for the
company team
1500000 3480000 3480000 3480000 3480000
Distribution cost for home
delivery service
50000 50000 30000 30000 30000
Telephone bills 5000 5000 5000 5000 5000
App maintenance cost 10000 10000 10000 10000 10000
Total cost LKR 3,385,000 3,658,000 3,675,000 3,615,000 3,665,000
20 | P a g e

21 | P a g e

Sales Budget
Quarter 1 Quarter 2 Quarter 3 Quarter 4
Forecasted Unit
Sales
220 400 600 1000
x Price per unit 500LKR 500LKR 500 500
Total gross sales 110,000 200,000 300,000 500,000
- Sales discounts &
allowances
2500 3000 4000 5000
= Total net sales 107,500 197,000 296,000 495,000
22 | P a g e

Financial Projections
Estimated Profit and loss account
Revenues 2021 2022
The annual fee for the
app
2000000 3000000
30% commission from
the 20 grocery stores
1500000 2500000
Drive through fee 500000 500000
Home delivery fee 150000 150000
Cost of sales (1640000) (1640000)
Gross Profit 2,510,000 4,510,000
Expenses
Marketing and Advertising 100000 50000
promotions 80000 60000
Total labour cost for
the company team
1500000 2500,000
Distribution cost for
home delivery service
Fuel
50000 50000
Telephone bills 5000 5000
App maintenance
cost
10000 10000
Electricity 10000 10000
Total Expenses 1,755,000 2,685,000
Net profit 755,000 1,825,000
23 | P a g e

Estimated Balance sheet of Grocery Mart Lanka
Assets 12/31/2021 12/31/2022
Fixed- Computers and Tabs 300000 300000
Software 100000 10000
Vehicles 1400000 2000000
Smartphones and CCTV
cameras
150000 150000
Property 980000 980000
Current - Cash 5505,000 6005000
Total assets 8,435,000 9,445,000
Liabilities
Current- Unearned revenue 80000 20000
Long term- Bank loan 100000 100000
Total liabilities 180000 120000
Equity
Invested capital 7500000 7500000
profit 755000 1825000
Total liabilities and owner’s
equity
8,435,000 9,445,000
24 | P a g e

25 | P a g e