Business Plan

Report

Topic: Augment Reality based Home

Decor Platform

GROUP NO 35:

ANKITA SINGH 74102140376

PRANAV JAIN 74102130126
RAUNAK SHIVANI 74102140371
RUHANI ARORA 74102140033
 Acknowledgement

We would like to express our gratitude to our mentors, Ms. Harpreet Gill and Ms. Nidhi
Navalkha for encouraging us and helping us finish this task and to all the commuters who spent
their time answering our questions. We would also like to thank Mr. Shubham Nahar and Mr.
Archis Saharsrabuddhe, for their insights on financial analytics and for taking time out of their
busy schedule to answer our questions. We would extend our gratitude towards Mr. Shashaank
Pathak who shared his expertise on marketing campaigns and Ms. Disha Bilala for her
designing support. We would like to thank Prof. Sangita Kher, for giving us an opportunity to
make such and project.
We would also like to thank the following people for their contribution in helping us making
this project what it is:
• Yogesh Funde
• Sandeep Hegde
• Kushagra Goel
• Sunny Oswal
• Shruti Singh
• All the people who filled our questionnaire

 Notes

Following are a few points that need to be taken into consideration before reading and
analysing the report:

• All analysis has been done on the basis of the first year only. No research and analysis
has been considered for the basis of the following years, in the process of our
expansion. This has been depicted only in the financials.

• We have targeted over 500+ cities as we have a tie up wit Pepperfry and we are
aiming the cities they operate in.

• As per our research modern retail of home and interior is expected to grow at 24-27%.
We have increased our growth at 15%p.a.

 Executive Summary
Who are we?

Haven is an app with which one can design the interiors of one’s home by virtually placing
home décor products through Augment reality. Since all home related needs require huge
investment, our app can help reduce these costs by providing our customers the assurance they
need before making this investment. Our app also is a market place for buyers and sellers,
allowing customers to see the product and allowing them to buy those products from the app
itself.

Our app will provide customers with a huge portfolio of home related products such as
furnitures, wall paints, carpets, lights, etc. Augmented Reality turns the environment around
you into a digital interface by placing virtual objects in the real world, in real-time. Augmented
Reality can be seen through a wide variety of experiences. This allows customers to actually
place the products in their homes and seeing in real life as how it looks and purchase it from
app itself.

Our app also provides certain additional features like artificial intelligence will look at your
history and your choices and will recommend you results . You can also ask it to design your
house automatically and it will do so. Our artificial intelligence is smart assistance that will
also detect your location and give results based on Vastu allowing you to design your products
following Vastu guidelines.

Such a platform gives customer ease and convenient shopping experience. Letting them to
actually see a product and place it in their surroundings. With such a choice of products,
recommendations, etc. customers get an experience like never before on their fingertips. With
help of augment reality customer can make his dream, his vision for his home actually come
into existence allowing them to create their own dream home.

The online furniture company, Pepperfry, provides the products available on our app. We
provide them a wider consumer base and they provide us with the products. The main selling
point of our app is the experience of Augment reality and how it can make online purchasing
fool-proof and convenient.

What are we and Who are we selling to?

The market we are trying to capture are of two types:
• B2B
• B2C

For all users the product is available for free only till a demo version. The user will be offered
selected products provided by Pepperfry. They can place them inside their homes and peruse
on whether they want to buy it or not. The main objective behind getting them to download the
app is to create curiosity about the product which is based on Augment reality.

If the user wishes to transact on the app, they will have to pay a premium amount which will
unlock an array of furniture and home décor related products to them.
The basic application is going to be the same for both customers and business. The usage is
going to differ for both.
For customers, the app works as a helping hand in buying furniture online and removes the
intermediary or middleman.
For business, which are basically going to be builder companies, such as Akshat Group, Zaveri
Construction Pvt. Ltd, Sanjay Arora group, Gurukul Builders to whom we will offer the app to
aid their clients in designing their sample flats. In return, they will give us a set amount for the
number of clients they are covering.

Financial Summary:
 Contents

Particulars Page No.

1. Company Overview 1

2. Concept / Product Description 3

3. Marketing Opportunity Analysis 7

4. Competitor’s Analysis 12

5. Marketing Plan 15

6. Financial Plan 26

7. Conclusion 34

8. Appendix
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Company Overview
Haven is an app with which one can design the interiors of one’s home by virtually
placing home décor products through Augment reality. Since all home related needs
require huge investment, our app can help reduce these costs by providing our customers
the assurance they need before making this investment. Our app also is a market place
for buyers and sellers, allowing customers to see the product and allowing them to buy
those products from the app itself.

Vision:

To be the most trusted and recognised brand related to all home related need. Where
customer is at our heart and giving them the experience like never before to make their
dream home a reality.

Mission:

Our mission is to serve customers with such a focus and desire that our service will
make the home improvement and building process enjoyable, exciting, and most
importantly successful for everyone. We are a value – driven business who believes in
strong relationships, taking care of the customer, superior service, and lasting trust.

Objectives:
Long Term Objectives:

• To capture a certain market share in order for sustainable growth.

• To build brand awareness.
• To focus on quality and experience at every stage of the course.
• To tie up with Builder Companies for B2B Associations.
• To tie up with Retailers for B2B Associations.

Short Term Objectives:

• To become the market leader in our sector.

• To build brand reputation and brand equity.
• To expand in multiple cities and locations.
• To create a suitable and sustainable working environment for employees and their
growth.
• To expand the array of services / products we have to offer.

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Management Team:
Our management team comprises of 5 members from multifarious backgrounds bringing
together immense amount of knowledge in their respective fields. The organizational
structure at Haven is a flat structure with decentralized decision making.

Following are a few details of the job roles each of our members would take up:

1. Chief Executive Officer (CEO): Ms. Ruhani Arora

The Chief Executive Officer (CEO) is responsible for leading the development and
execution of the Company’s long term strategy with a view to creating shareholder
value. The chief executive officer is responsible for providing strategic leadership for
the company by working with the board of directors and the executive management team
to establish long-range goals, strategies, plans and policies.

2. Chief Operating Officer (COO): Mr. Raunak Shivani

The chief operating officer (COO) position provides the leadership, management and
vision necessary to ensure that the company has the proper operational controls,
administrative and reporting procedures, and people systems in place to effectively grow
the organization and to ensure financial strength and operating efficiency. The position
accomplishes this through a respectful, constructive and energetic style, guided by the
objectives of the company.

3. Chief Financial Officer (CFO): Mr. Pranav Jain

The Chief Financial Officer (CFO) is responsible for directing the fiscal functions of
the corporation in accordance with generally accepted accounting principles issued by
the Financial Accounting Standards Board, the Securities and Exchange Commission,
and other regulatory and advisory organisations and in accordance with financial
management techniques and practices appropriate within the industry.

4. Chief Marketing Officer (CMO): Ms. Ankita Singh

A Chief Marketing Officer (CMO) is responsible for overseeing the planning,

development and execution of an organisation's marketing and advertising initiatives.
The CMO's primary responsibility is to generate revenue by increasing sales through
successful marketing for the entire organisation, using market research, pricing, product
marketing, marketing communications, advertising and public relations.

5. Chief Technology Officer (CTO): Mr. Nipun Bilala

The Chief Technology Officer (CTO) is responsible for overseeing all technical aspects
of the company. The CTO works with Executive Management to grow the company
through the use of technological resources. Using an active and practical approach, the
CTO will direct all employees in IT and IO departments to attain the company’s strategic
goals established in the company’s strategic plan.

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Concept / Product Description

Haven is an augmented reality based home decor app. The app also features e-commerce
capabilities providing an online marketplace to buyers and sellers. This app is unique
in its way of showing home decor products to its consumers. With use of both augmented
and virtual reality technologies, the app enables its users to see the products in their
own real life surroundings. giving them capabilities to see a wide array of products,
compare them, place them in their homes and buy them right from the app itself.

Haven will serve as a platform to buyers and sellers and will give them a great shopping
experience. The logistics part will be taken care by the sellers themselves. The app also
provides its users with additional paid benefits of hiring one of the interior designer
from our company itself to assist them with their home decoration. Haven is also using
artificial intelligence capabilities to help its users with their users find the product they
are looking for. The artificial intelligence of our app uses location services of its users
giving them additional benefits of suggesting them products based on Vastu astrology.

The app will also provide a social media feature to its users with such feature users can
click or create a 360 video of their homes and decorations made by them and share them
with their friends using this app. Users will be able to like, comment and follow other
users and their friends around the world. Verified users i.e. public figures or celebrities
will be able to share their designs with their fans and users around the world. This
allows their fans to preview a slice or a part of their inspirations.

App:

The app provides an easy to use interface to its users. The very first screen greets them
with a tutorial on how to use such an app and how it would help them make their life
easier. After that you login and get into the basic interface of app.

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The app has five tabs on the bottom of app:

1. Browse Tab: In this tab, users will be able to look for the products and promotions
that our app provides to them. Users can search and look for the products they are
looking for.

2. Home Tab: This tab allows users to manage the rooms or different projects they are
working on with the app.

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3. Cart Tab: This tab allows users to manage their shopping cart and checkout with their
products.

4. Feed Tab: This tab gives user a feed of recent decorations done by other users around
the world. It will allow them to follow, like, comment and even get information of the
products used by them in their decorations and posts.

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5. Settings Tab: In this tab, users will be able to change basic settings of the app as well
as manage their online profile and membership.

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Market Opportunity Analysis

1. Market Research Analysis:

Overview:

In our approach towards research, we extended to get a broader understanding of the

various aspects and industries that correlate with ours. Hence, from our primary to our
secondary research, we have tried to analyse the market from the perspective of a
household user, the home decor sector and e-commerce industry related to home decor.

Primary Research:

Key Findings:

• Most of the respondents didn't consulted to any interior designer or architect for
their previous home decor needs. They did most of their home decor by
themselves taking inspiration from TVs, magazines, etc.

• Interior Designers and Architects weren't the first choice for most of the
respondents mainly because of their high fees.

• Most of the respondents didn't consulted any interior designer or architect just to
avoid unwanted hassle and save some time.

• 81% of respondents were satisfied with their previous home decor experience.

• Main problem faced by most of the respondents while doing their home decor was
that the process is time consuming and that it involves huge cost.

• When asked to rate different aspects that affect their home decor decisions, it was
found that Budget was the least of their concerns. Their decision is more affected
by the way they wanted their products to be personalised as per their needs.

• More than 80% of the respondents would love a product that would help them see
the products in their surroundings before making a purchase.

• More than 75% of respondents were willing to pay Rs. 500 for such a product and
rest of them were willing to pay more.

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2. Business Environment Analysis:

A. PESTEL Analysis:

Political:

E-commerce has really flourished in India but there is no dedicated ecommerce law in
India to date. Partnership firms shall be taxed at flat rate 30%.
The government has overtime realized the importance of the E-commerce industry to
the country’s economy. The E-Commerce Industry, by virtue of its benefits across the
supply chain, has become one of the areas of focus for the government of India.
Initiatives by the State, which have facilitated the promotion and growth of startups in
India include:

The Minimum Alternate Tax Regime, which will effectively allow startups registered
between the 1st of April 2016 and 1st of April 2019 to a Minimum Alternate Tax, thereby
reducing the tax liability to 18.9%, which would further accumulate as tax credits.
The one-day incorporation policy, which reduces the startup establishment time, thereby
reducing the startup establishment time.

Economic:

The E-commerce industry is fast rising, the changes can be seen over a year. The sector
in India has grown by 34% (CAGR) since 2009 to touch 23 billion USD in 2015.
The e-commerce industry in the country is likely to be worth USD 38 billion by 2016,
a 67 per cent jump over the revenues for 2015.

Increasing internet and mobile penetration, growing acceptability of online payments

and favourable demographics has provided the e-commerce sector in India the unique
opportunity to companies connect with their customers. It is noted that the buying trends
during 2016 will witness a significant upward movement due to aggressive online
discounts, rising fuel price and wider and abundant choice will hit the e-commerce
industry in 2016. It observed mobile commerce (m-commerce) is growing rapidly as a
stable and secure supplement to the e-commerce industry.

With such a significant rise in this particular industry, we at Haven look to capitalize
on this exponential growth curve and to establish a low risk – high yield business.

The fall in the prices of realty sector will have a heavy impact the profitability of the
application. The economy currently is experiencing a fall in the reality. The fundamental
reason why property prices have to fall is because they are no longer affordable to the
vast majority of Indian middle class households.

Social:

The country still has only 15.1% of its population using internet as of 2013.
Of that many users will not be so overly active to use this technology as augmented
reality is still a futuristic approach to life.

In addition, we see the emergence of another trend, which will be key to the growth of

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our company. We have seen an exponential increase in an E-Commerce penetration in

Tier II and Tier III cities. A study has revealed that residents of Tier II cities such as
Pune, Gurgaon, Noida, Nagpur, Chandigarh etc, have witnessed a 120% increase in the
customer base Year on Year.

Technological:

Augmented Reality gathers a wide variety of user experiences. We distinguish 3 main

categories of Augmented Reality tools.
Augmented Reality 3D viewers, like Augment, allow to place life-size 3D models in
your environment with or without the use of trackers.
Augmented Reality browsers enrich your camera feed with contextual information. For
example, you can point your smartphone at a building to display its history or estimated
value.

Environmental:

We are avoiding the wastage of raw materials like wood, metal, etc. as we give the
customers an option to choose what they want before they order something and replace
or remove it because it did not match with the interiors of the room.

Legal:

E-commerce laws in India are still maturing as we have basic level legal framework
regarding e-commerce in India as incorporated in the Information Technology Act, 2000
(IT Act 2000).
However, there is no clarity regarding legal or illegal usage of e-commerce platforms
in India as on date.
E-commerce players are required to comply with cyber law and cyber security regulatory
compliances in India.
The Finance Act, 1994 governs the Service Tax an organization is liable to pay, in the
event a business obtains a service from a 3rd Party.

B. Porter’s Five Forces Analysis:

An analysis of this model applied to our application reveals that the bargaining power of
suppliers, threat of new entrant in the industry and bargaining power of customers are the
strongest market forces, with marketplace competition and threat of substitute product
representing low-to-moderate market forces.

Bargaining power of Suppliers:

The bargaining power of suppliers is the strongest market force since for our
application, the main attraction for anyone to use it is the fact that it allows the customer
to select, position and purchase any home related product, all in the same interface. To
be able to run this successfully, it is important that we get the best brands and designers
on-board. There will be a very high switching cost in case we are not able to sustain
relationships with a particular supplier, in our case, Pepperfry.

Threat of New Entrant:

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The market is potentially open for new entrants due to the rise in the smart phone culture
and the exponentially growing tech savvy crowd. The barriers to entry are not much and
hence this is counted as a strong market force.
Bargaining Power of Customers:

The bargaining power of customers is another significant market force. Threat of a new
entrant in the industry as individual purchases are going to be pretty large in relation to
the total revenue since each individual will purchase products in bulk from the app and
thus, we might lose out on a few bulk transactions if an issue occurs.

Marketplace Competition:

This market force is a moderate-to-weak market force since, our product is one of a kind
in the current market in which we are functioning. The only competition we face is from
traditional style interior designers, who people prefer consulting due to the lack of trust
in technology. This app makes the services of an interior designer, which usually has
very high costs, available to everyone with a smart phone.

Threat of Substitute:

Extending the aforementioned point, there is a lack of applications that provide services
as we do on our app. Customers would definitely not mind using our app at the
convenience that it provides and the amount of creative freedom it gives to the user.
Hence, threat of substitute is a low-level market force for our services.

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3. Market Size and Growth Analysis:

The markets that Haven App falls under would be the:
1. Home Décor
2. E-commerce

Home Décor:

The category’s three broad segments – furnishings, furniture and décor, have been
growing positively. There is a small shift of market share from furniture to décor during
last two years. This is due to the reason of controlled consumption, which resulted in
spending less on high value items like furniture. Consumers continued to spend on
furnishings as it has been and invested more in upgrading interiors and décor items to
get refreshing look at home and office. The furniture market saw marginal drop of 1 per
cent and décor gained with the same since previous retail report.

The furniture segment contributes highest in the overall market with small furniture like
chair, table, stools, cabinets, desks etc. Collection of such items generates volume
business for the category. The large furniture items such as beds, sofa set, dining
furniture set, large wardrobes, cupboards are high-ticket items, which require higher
investments. The market share of small furniture is 75 percent and that of large is 25
per cent. Home furnishings segment, on the other hand, contributes the lowest share of
26 per cent. The segment is further broken into sub-segments of bed linen, towels and
robes, kitchen linen, curtains, upholstery, blankets, rugs and carpets. Among these sub-
segments bed linen has the largest share close to half of total market. The faster growing
sub-segments are curtains, upholstery, blankets, rugs and carpets.

E-commerce:

India's e-commerce market was worth about $3.9 billion in 2009, it went up to $12.6
billion in 2013. In 2013, the e-retail segment was worth US$2.3 billion. About 70% of
India's e-commerce market is travel related. According to Google India, there were 35
million online shoppers in India in 2014 Q1 and is expected to cross 100 million mark
by end of year 2016. CAGR vis-à-vis a global growth rate of 8–10%. Electronics and
Apparel are the biggest categories in terms of sales.

According to a study conducted by the Internet and Mobile Association of India, the e-
commerce sector is estimated to reach Rs. 211,005 crore by December 2016. The study
also stated that online travel accounts for 61% of the e-commerce market. By 2020,
India is expected to generate $100 billion online retail revenue out of which $35 billion
will be through fashion e-commerce. Online apparel sales are set to grow four times in
coming years.
India's retail market is estimated at $470 billion in 2011 and is expected to grow to $675
billion by 2016 and $850 billion by 2020, – estimated CAGR of 10%. According to
Forrester, the e-commerce market in India is set to grow the fastest within the Asia-
Pacific Region at a CAGR of over 57% between 2012 and 2016.

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Competitor’s Analysis

When there are more choices, there is more competition. Therefore, by counting the
range of choices across the domains it is possible to identify the extent of competitive
pressures.

Direct Competition:

There is no direct competition for our product/service in the Indian home décor industry.
There is no other company that is providing augment reality in India. There are few
companies/applications outside India that are providing augment reality based home
décor applications like Decolabs, KARE, iStaging, and augment. We are different from
them as they all use the outdated technology of augment markers and instead we are
using technology that is infused with augment reality and virtual reality.

Indirect Competition:

There is a lot of indirect competition for our application in India. We have to compete
with brands like pepperfry, urbanladder, fabfurnish, snapdeal, etc. for selling our
products online as all of them are already well established.

PepperFry:

Market leader in the Indian online furniture space. Sources 70-80% of the products from
Jodhpur.

USP: Delivers wide variety of designs with customer reach spreading to 500+ cities
across India.

Fabfurnish:

Second largest player in the Indian online furniture space. Has the widest variety of
SKUs among the horizontals. Largely operating in the market place model.

USP: Focus is on providing affordable product categories, appealing to wider audiences.

Urbanladder:

Smallest of the three major vertical players. 100% private label with a strong focus on
quality and customer experience.

USP: High end designs delivered through the best customer experience.

Snapdeal:

The largest marketplace for furniture in India, with 15000-20000 SKUs and 400
suppliers. They are still working towards getting the customer experience and delivery
right.

USP: Largest and fastest growing selection delivered to a large range of locations.
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Other indirect competition for our product/service are the retail stores and mom-pop
stores.

Analysis:

By providing the customer with the latest and a blend of two technologies we have been
able to get an upper hand on our direct competition. We are the only service providers
in the Indian market providing this type of service.

In the indirect competition, our biggest competitor was pepperfry, to avoid this from
happening we have come in a contract with pepperfry to list it products on your app and
website. By doing so we have got the market share that pepperfry enjoys and even their
customer reach of 500+ cities across India.

SWOT and TOWS Analysis:

STRENGTHS:

• First movers advantage

• The new sphere
• Personal experience
• Augmented Reality will revolutionize the mobile user experience.
• Time Saving
• Easy and convenient
• Direct communication with buyers and sellers
• Low Transaction Cost
• Faster Buying Procedure
• Easy comparison of products in order for you to make a right choice considering
these home products require huge investment.

WEAKNESS:

• It is not a tested market

• No idea about quality and physical condition of the product
• Security and fraud concerns mean some people are still reluctant to use their
credit cards online.
• Deliver damaged product

OPPORTUNITIES:

• New technologies
• Global expansion
• Cut down on local competition
• Changing demographic trends
• Future Innovation and more increase in services and portfolio
• Backward Integration

THREATS:

• Server breakdown
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• Fraud in E-commerce
• Risk in Indian E-commerce.

Strengths Weakness

The new sphere Deliver damaged product

Time saving
Ease and Convenient
Direct communication with
buyers and sellers
Low transaction cost

Opportunities Strengths and Weakness and

Opportunities Opportunities

New technologies Time saving, ease and If we start in-house

Global expansion convenient and low production, this will reduce
Cut down on local transaction cost would cut product damage.
competition down on local competition
Future innovation and more The new sphere will lead to
increase in services and exploiting new technologies.
portfolio
Backward integration: in
house production

Threats Strengths and Threats Weakness and Threats

Fraud: People using unfair Direct communication with Checked products will be
means to operate a commerce buyers and sellers can help sent to reduce risk to
can damage the confidence reduce fraud in the business consumers
and faith of common people

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Marketing Plan
Marketing Mix

A) Product:

Haven is an app with which one can design his/her house by actually placing the
products and looking at them through augmented reality. Since all home related needs
require huge investment, our app can help reduce these costs by seeing those products
placed in your house, in real time. Our app is also a market place for buyers and sellers,
allowing customers to view the product as well as allow them to buy those products
from the app itself.

Our app will provide customers with a huge portfolio of home-related products such as
furniture, carpets, lights, etc. Augmented Reality turns the environment around you into
a digital interface by placing virtual objects in the real world, in real-time. Augmented
Reality can be understood through a wide variety of experiences. Here this implies
customers place the products in their homes virtually and if they so wish, they can buy
them from the app.

Our app also provides certain additional features like artificial intelligence that will
help you by looking at your history and your choices and offering recommendations.
You can also ask it to design your house automatically and it will do so. Another added
feature is location detection and design based on Vastu guidelines.

Our app also provides a social media option to customers, which allows them to share , comment,
like and view interior designs and home décor of their peers.

Such a platform provides customers ease of use and convenient shopping experience.
With such a choice of products, recommendations, etc. customers get an experience like
never before right at their fingertips. This new and improved augmented reality platform
provides consumers with an additional delight factor, and helps them convert their
dreams into breathtaking reality.

Product Levels:

Core Product: A Home Decor app to redecorate your homes.

Basic Product: This app provides the customer with ability to buy home decor products right from
app itself.

Expected Product: This app provides customers with an easy to use interface.

Augmented Product: This app uses technology of Augment Reality which allows user to see the
products in their real-life surroundings improving their purchase experience.

Potential Product: This app may become one stop shop for all home decor related needs of a
consumer.

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B) Place:

App:

Haven is an app available to consumers through Google Play Store and Apple AppStore.
Consumers can get access to all the services provided by us just by downloading our app through
their respective app-stores and can get an ultimate shopping experience.

Website:

Consumers can also reach us through our website. Our website will provide them tools to manage
their designs and projects anywhere and anytime. Our website will provide them with app download
links and will give them support and assistance needed by them.

C) Price:

Pricing for Consumers:

We are adopting Freemium based pricing strategy for our app. Under such strategy consumers will
be able to download our app for free but will have to make in-app purchases for further use and
benefits. When consumers download an app, they will be able to use it in a room as a demo version.
In this demo version, they will be given a particular set of products, which they can try on their
surroundings to get an experience of the app. If they wish to design their homes with our app, they
will need to make an in-app purchase of Rs. 750.

Pricing for Businesses:

For companies and corporates using our product, the strategy being followed by us is Cost Based
Pricing. Under such pricing strategy we will be charging different prices from different sizes of
businesses. Such a price will be based on factors like Term of contract, size of business, Brand
Reputation of business, etc. This price will cover all our costs and will provide us with certain amount
of profit margin depending on the price

D) Promotions:

Online:

The application will be promoted online through mediums such as Facebook, Instagram and Pinterest.
According to the market survey, most of the target market refers to these sites for ideas and samples
of home décor designs. Sponsored ads on these websites will enable us to reach the market we are
targeting whilst providing the divide between vision and reality, or in our case, augmented reality.
On clicking on these ads, customers will be directed to their Google play store or Apple store where
they can watch our demo video and download the app.

The social networking platform being provided on the app will allow customers to share their designs
and ideas on the app and other social networking sites (Facebook, Instagram, Pinterest) as well. The
tech personnel on our team will handle these sites and their activity.

On-ground Activities:

We will be setting up stalls at public places, preferably outside home décor stores such as Pepperfry
where the customers will get live demonstrations of the application. This will help in attracting more
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customers who are looking into designing/redesigning their homes and are interested in buying new
furniture, which is, our target market. Our team of interns will execute these demonstrations. The
remuneration of these interns will be dependent on the number of downloads they are able to achieve.

Currently, these stalls will be set up in the cities of Mumbai, Bangalore, Gurgaon, Chennai, Pune,
Delhi, Kolkata amongst 14 others as the physical store of Pepperfry called Studio Pepperfry is only
available in these cities. They are aiming to open 10 new stores by the end of this year. This will
increase our reach by leaps and bounds.

Other places where we can set up similar stalls are Technology expos and builder expos. Since the
App is aiming to target builders to earn revenue, setting up demonstration stalls at builder expos will
increase our reach.

Technology expos are hubs for people who are tech savvy and want to experience unique products.
Creating awareness about our products amongst this segment will ensure that there is an increase in
our consumer base as these tech savvy people are often influencers.

Ad Words and Search Engine Optimization:

• The use of Ad words and SEO will be undertaken taking into consideration the following
benefits in mind:
• Increase traffic on the website
• Search Engine Optimization provides quantifiable and traceable results
• Search Engine Optimization with its inbound nature will help the business save money as
opposed to an outbound strategy such as cold calling.

Additionally, as our business is an E-Commerce business, the low customer acquisition cost and
effectiveness of Ad Words, is primarily the reason behind our business looking at Ad Words, as a
means of promotion.

Pamphlets and Newspapers:

• The use of pamphlets that will be attached to the daily newspapers will be widely undertaken.
This form of advertising will be undertaken taking into consideration the following benefits:
• Is a relatively cheap form of mass media.
• Has good visibility to the targeted consumer.
• The reach of this form of media can be controlled to a large extent, as the reach directly
corresponds to your spend.
• Publicity in newspapers will increase our credibility in the minds of the consumer

Sponsorships:

We would be putting in a majority of our budget into sponsorships of web series and Youtube
channels. The viewership of these shows is tremendous and it will give a great reach to our product.
We will pay these Youtube channel to place our products in their web series.

Outdoor Media:

We would be hiring hoarding within the prime area of the city in order to focus on the importance of
on-ground presence. The viewership in this form of promotion is comparatively high and can lead to

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B-Plan Group No .35

conversions. Furthermore, it adds to the brand recognition. These billboards will be placed at prime
locations in major cities such as Delhi, Mumbai, Bangalore and Calcutta.

Word of Mouth:

Since our service is something that can only be experienced, word of mouth would play a big part in
how well our marketing plan works. The quality of our application and the products available can be
rightly understood only on trial. The builders who are going to be using our app to design their sample
flats can recommend it. Reliability and trust are greatly affected by positive brand image, which will
be ensured if we take this step. Existing users of the app will talk about it to their peers, hence
influencing them and increasing downloads.

TV ads:

Since most of our target market is either from age groups of 18-30 or 40 above, aiming at prime time
90 second ads promoting and demonstrating the app will work wonders. One of the ideas for an ad
campaign is the “See It for Yourself” campaign. This campaign will aim at the basic issues that a
customer faces while designing/redesigning their homes and shopping on e-commerce sites. We will
aim at showing how our app will make their vision about their homes, a reality.

E) Physical Evidence:

Facebook page:

Our Facebook page will pose as a platform to announce discounts being offered on the app, updates
about new designs, tips for designing better interiors. Consumers will be able to interact with us
directly and that will help us in gaining some key consumer insights. That way, we can develop our
app and provide the customers with whatever it is that they expect. This saves the cost of continuous
market research.

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B-Plan Group No .35

Instagram:

Our Instagram page is called ‘Haven App Club’. This forum will provide consumers with a platform
to share their design ideas with other members of the club. Depending on the response on the page,
we will decide our further marketing strategies relating to current trends and fads.

Pinterest:

F) People:

Our management team comprises of 5 members from multifarious backgrounds bringing together
immense amount of knowledge in their respective fields. The organisational structure at Haven is a
flat structure with decentralised decision making.

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B-Plan Group No .35

Following are a few details of the job roles each of our members would take up:

1. Ruhani Arora (CEO):

Ruhani Arora is a Final Year Student from NMIMS University. A Finance major at NMIMS
University, Ruhani has been a keen member of the Entrepreneur Cell and the Rotract club. Her vision
and understanding about start-ups is immense and her ability to apply her knowledge to real life
scenarios makes her a competent CEO.

She has interned with big corporates such as Philips in the Finance Capital Department and at Vintage
Labs Pvt. Ltd in the Accounting and Finance Department.

2. Pranav Jain (CFO):

Pranav Jain is a Final Year Student from NMIMS University. A Finance major at NMIMS University,
Pranav has been a keen member of the Finance Department of the college’s fest. His way with
numbers and analytic skills make him the right partner for our App.

He has also interned with big finance companies, one of them being, B.P. Wealth in the Accounts
department and has landed a job at Larsen & Toubro.

3. Raunak Shivani (COO):

Raunak Shivani is a Final Year Student from NMIMS University. A Marketing major, Raunak is the
person behind the basic idea of this application and the company and being the Operational Officer
gives him the freedom to execute his plans, his way.

4. Ankita Singh (CMO):

Ankita Singh is a Final Year Student from NMIMS University. A Marketing major, Ankita
successfully headed the Cultural Club of her college, managing over 150 odd students and headed the
Social Media Department of the Sports Club for three consecutive years. Her ability to perceive the
needs and wants of the consumer along with her creative sense makes her eligible to be the marketing
officer of the company.

She has interned with LockTimes, a mobile application as a content writer and has run several
successful marketing campaigns as college projects.

5. Nipun Bilala (CTO):

Nipun Bilala is the owner of Absolute (Codez), a graphic design and coding company having 8
graphic designers and coders working for him. His company will aid us in creating our app through
coding, designing the prototypes of the furniture and handling other technology related work for the
Haven App.

6. Customer Service personnel:

We will hire 3 employees (for 13 possible customers contacting each day) for the purpose of customer
service and will be available for 8 hours per day on the phone to resolve customer issues.

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B-Plan Group No .35

G) Process:

1. App download and website access:

In this stage the user downloads the app on his/her mobile phone. We will make our app available on
both iOS and Android. To increase traffic on our Facebook page and app, we will use heavy
promotional techniques to create awareness about bucket list.
Once, the user opens our homepage or accesses our app, they will be asked to sign up using Google,
Facebook or create an account on our platform.

2. Browsing through products available:

On demo basis, a user can go through a few selected products. To view all the products and buy them
on the app, the user needs to pay a premium of Rs. 750.
The user can browse through an array of home décor products made available on the App, provided
by Pepperfry. The price, variants, colors of the product will be shown on selecting a product. The
consumer can make their selection and a digital version of the product will appear on the screen. A
catalogue of products are received from Pepperfry for the same.

3. Augment Reality:

The user needs to stand up and face the back camera of their smartphone or tablet towards the area
where they want to place the product and see. Augment Reality allows the user to position the selected
product according to their convenience and see if the product is apt for their home or not. The in-built
feature of Vastu guidelines, will appear on the screen as suggestions so that users can make better
decisions.

4. Adding to cart:

Once the user has positioned the product and made a decision about whether they want to buy the
product or not, they can do so by swiping up on the digital version of the product that directly sends
the product to their cart. The user also gets an option to design the interiors of their room and save
the sample. This sample can be shared on the feed tab present at the bottom of the interface. Each
product selected by the consumer are saved in the database back at our office and these products are
placed first, the next time the user uses the app.

5. Buying the product(s):

The app directs you to a payment gateway where they can pay for the product through credit or debit
cards, e-wallet, net banking which can be found under settings> my wallet. Once the payment has
been made, the order is sent to Pepperfry, who handle the rest of the logistics.

Value Chain Analysis:

Primary Activities:

1. Inbound Logistics:

Our company will get into a joint venture with Pepperfry at the start of project to show their portfolios
and sell them on our platform. We will also get our app developed by outsourcing to an app
development company which will be our source to our app.

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B-Plan Group No .35

2. Operations:

Giving the shopping experience to customers like never before in which they can see and place all
home-related products in their own surroundings while providing them a marketplace for the same.
Also doing database management to store user data for future recommendations.

3. Outbound Logistics:

We will be providing services through the app itself. The app will be integrated with augment reality
which will help customers to design their homes in real time and placing the order from app itself.
For the delivery of products, every order the customer places will go directly to the seller (Pepperfry).
Our company is just the platform for the customers and will be acting as an intermediary between
buyers and sellers.

4. Marketing and Sales:

We believe once the consumers know that a product like this exist and can fulfil their needs in a whole
new and an interesting way. Then the customers would surely like to use our product.
The one thing our marketing and sales team will be mainly focusing on is our company’s vision on
becoming the most trusted brand for all home-related product needs and our campaigns will be
targeting to gain that trust of consumers.

5. Service:

Since consumer is the key to our product and our company’s vision revolves around our consumer.
We will be setting up a Customer Support for his/her assistance.

Support Activities:

1. Firm Infrastructure:

Our company infrastructure will be aligned with our Company’s mission in order to create a synergy
between the two. The infrastructure will be mainly for our customers and their support. Along with
IT infrastructure to ensure smooth and quality working of our platform and organisation as a whole.

2. Human Resource Management:

Human resource is our one of the most important component of our organisation as it is the one
directly communicating with our customers to provide them the best possible assistance. Our
company will be providing training to all our employees related to our product and its functioning.
So that these employees are able to fully satisfy and assist them in best possible way.

3. Technology:

Technology is the most important aspect of our product. It is the main pillar of our service and our
service relies on it for its functioning. Our IT platforms and R&D will ensure the functioning of our
service and future features of service are in alignment with company’s vision and needs of customers.

4 Procurement:

Our company will be outsourcing the app development to Absolute (Codez) and will be leasing Data
centres and IT infrastructure to provide service like this.
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B-Plan Group No .35

Pepperfry will provide their portfolios on our app.

App and infrastructure will be provided by Absolute (Codez).

Segmentation and Targeting:

1. Geographic:

Our app caters to the urban, tech savvy population. Our organization will be set up initially in
Mumbai from where we will control the workings of the app all across India. The city of
Mumbai has one major issue, which is, the lack of space to make big houses. In a city such as
Mumbai, our app will get a good response as many people shift to Mumbai for work or studies
and are away from home. The Haven App will give them a platform where they can design
their houses, the way they want to and be absolutely sure when they make the investment.
The app will expand its base to other cities such as Delhi, Ahmedabad, Bangalore and Jaipur
where there is a booming sector for construction. This way we will be able to target builders
who can use our app to design the sample flats in their projects and invest money in the
company.

2. Demographic:

Age:

19-25 (students and working class):

The tech savvy urban population that will be attracted through the aspect of Augment Reality.
Most of the people falling under this segment, relocate from their home towns in search of
education or jobs and are the largest market of renters. Rented houses are basically the blank
canvas for our app. These segments may not make big investments on the app but they do act
as a huge market for home décor products.

25-40 (unmarried or newly married):

This segment is where maximum number of redesigning is noticed. The income is consistent
and they have their own needs and wants. The Haven app acts as helping hand for these people
when they want to buy new furniture but cannot afford a designer for the same.

40 above (decision makers in the family):

This refers to the decision makers in the house who decide whether their house will undergo
redesigning or not. The investment for these segments is usually very high as the entire family
is involved. This segment will be targeted by the array of different products we have available
on the app and the ease at which they can change their old furniture to bring in the new from
the Haven App.

Gender:

Initially, the app will target both men and women, as they are equally involved in the decision
making process. For segments of age group 25-40 and 40 above, we will target the female
segment. In India, the woman in the house makes home décor related decisions. They are the
influencers and thus targeting them would get us a great response.

Income:

The Haven app is meant for the upper middle class and high-income families and individuals
as the products available on the app are priced at that level.
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B-Plan Group No .35

3. Psychographic:

According to the market research, these are the issues faced by customers when they go
furniture shopping for redesigning their homes.

Maximum number of consumers say that it is a time-consuming process. The Haven App
allows its customers to select the product they like, place it in their homes to be sure and can
buy the product on the app itself in a matter of minutes.

Consumers also felt that unavailability of affordable décor acts as a barrier. This barrier can
be broken on The Haven App as it provides and array of products to select from.

Factors such as lack of designing skills, or affordable guidance on the same causes the
consumer to be inhibitive while buying furniture. The App offers expert guidance and Vastu
guidelines at a premium price that is both reasonable and cheap.

Lapse in judgement is one factor that many people face whilst buying furniture. To eradicate
the need for measuring your walls and going through the ambiguous process of picturing the
furniture in your head, The Haven App comes in handy. The consumer has the option to design
their rooms, select the best product for them and buy the product, all in one app.

4. Behavioral:

According to various behavioural characteristics we have segmented the market on the basis
of their user status, their purchase behaviour etc.

Occasion:

According to observations, consumers indulge in furniture shopping mostly in the festival

season, i.e., Diwali. Etc.

Benefits sought:

The target market seeks the convenience of buying furniture as a benefit from the service.

User Rate:

Our target market will belong to the light users category as designing your room and buying
furniture is not something consumers indulge in everyday and only do so when the need arises.

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B-Plan Group No .35

User Status:

Our target market can be classified as first time users because of the uniqueness of the product.
The absence of augment reality based home décor apps makes it one of a kind and hence every
user, a first time user.

Positioning:
We would accurately position ourselves to be the most trusted and recognized brand related to all
home-related need. To provide a platform that is unique and convenient at the same time for all our
customers.

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B-Plan Group No .35

Financial Plan
1. Costing

Assumptions for forecasted value:

Inflation rate 5.9%

Costs increase at inflation (repairs and maintenance) 5.9%

Increase in Electricity 5%

Increase in rent and salary 10%

We have taken inflation 5.9% as we have taken the geometric mean from the year 1996
to 2015.
We have increased the number of users by 15% p.a. because the modern retail industry
is said to grow by 24-27% and retail industry of home and décor by 13-17% ,so we have
a conservative approach.

2. Staffing:

We have increased the salary of the staff by 10% as our research showed us that the cost
of staff rises at a higher percentage than that of inflation rate in the country.

3. P&L:

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B-Plan Group No .35

We have taken that marketing expense will increase by 25%p.a. as we think that our
product is new in the market and would need more and more marketing for at least first
5 years of its span.
As we are a startup, we have tax exemption for first three years as we are not crossing the turnover
of Rs 25,00,00,000 in a year. After the time span of 3 years we’ll be charged tax at 30.9% p.a.

Analysis of P&L:

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B-Plan Group No .35

Net profit after tax has a Compounded annual growth rate of 173.02% over the span of
5 years.

4. Shareholding Pattern:

We have assumed that each partner will invest 6 Lakhs as an initial investment. Whereas
Mr. Nipun Bilala will be providing the technical help to set up the application and hence
has no cash investment.

5. Balance Sheet:

The net worth Comprises of the following:

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B-Plan Group No .35

The total capital employed comprise of the following:

Since we are using cash format there will no current liabilities. All account will be
settled in the month it has occurred.
Depreciation on all the Fixed Assets has been shown in a Depreciation Schedule and
has been accounted for in the Written Down Value Method in the Balance Sheet.

6. Cash flow Statement:

The Cash Flow Statement shows the movement of cash in the company whether as inflow
or outflow and the balancing closing value of cash is then transferred to the Balance
Sheet.

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B-Plan Group No .35

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7. Ratio Analysis:

8. Break Even Point:

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B-Plan Group No .35

9. Payback Period:

10. Revenue Model:

Membership Fee:

The Revenue Model of the business has been constructed on the basis of our estimates
with regard to an estimated conversion rate of our Marketing Spend.
It is estimated that we will have 5000 views on facebook for a single day but views
don’t mean conversions so we have taken that if 1% convert to become our users, same
with Instagram and google gave us the rate of conversions per day as 80.

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Leasing Fee:

The revenue model from the corporates has been constructed on the basis of our
estimates with regard to the estimated conversion rate of the corporates approached.
It is estimated that we will be targeting 60 corporates in the first year, but we will not
get a 100% conversion rate so taking a conservative approach we have taken a
conversion rate of 30%. So, we will get 18 corporates on board by the end of first year.
Number of corporates approached during the year increases by 50% each year.
We have assumed a retention rate of 50%.

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B-Plan Group No .35

Conclusion
Expansion Plan:

As a business we plan to do the following:

• Hire interior designers and form a new package for membership of the
application. The package will be a premium package, would cost more and
customers can consult interior designers.
• Would like to start our own in house brands for home decor.
• We will have a new revenue source from sponsored products and advertisements.
• Would like to add another feature of virtual reality where people can set up their
home decor sitting at their home.

Funding:

However, our business’s capacity to scale up, will be contingent on the business
receiving funding from a Venture Capitalist. This is because the Partners of the firm do
not have the resources to invest in the expansion of the firm and would thereby require
funding from a Venture Capitalist, to facilitate expansion.

Investment Case:

We believe our business will have the capacity to raise funding, due to the following
reasons:

a) High Growth:

Our business has a 173.02% PAT CAGR, suggesting high stability and growth.
In addition, considering the low inventory and asset light business of the firm, the
prospects of high growth and scalability, are likely to garner investor interest.

b) Segment of Interest:

The E-Commerce industry has been a segment of interest for Venture Capitalists and
Private Equity Funds.
For instance, [Link] recently got funded by close to 4 investors and raised
around 210 crores.
As our business operates in a niche segment, which lacks competition, our business is
likely
to garner investor interest.

c) Low Capital Requirement:

The major spend of our business, is limited to 1 key area: Marketing. The absence of
any inventory or assets, also makes our business risk relatively low.

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Appendices
 Appendix 1: Primary Research Survey

Q1. Gender

Male Female

49% 51%

Q2. Age

18-30 30-40 40 Above

15%
6%

79%
Q3. Who did you approach to design the interiors of your home in recent past?

Interior Designer
Architect
Self ( Internet, TV, Magazines,Pinterest etc.)

34%
48%

19%

Q4. If not an Interior Designer, why not ?

They are expensive. 51%

They are inaccessible. 9%

To avoid unwanted hassle. 42%

Process is time consuming. 37%

0 15 30 45 60
Q5 Did the outcome meet your perceived expectations?

Yes No

19%

81%

Q6. What hindrances did you face?

Miscommunication 13%

Lack of skilled knowledge 22%

Unavailability of affordable decor 25%

Lapse in Judgement 15%

Time Consuming Process 50%

Others 8%

0 15 30 45 60

Q7. Kindly rate the following on the importance given to each factor, while designing/ redesigning?
( 1 being lowest, 5 being highest )
Q8. Would you like a product/service which would help you visualise the home decor before actually

1 2 3 4 5

100

80

60

40

20

0
Budget Time Guidance Personalisation
making a purchase?

Yes 80%

No 4%

Maybe 17%

0 20 40 60 80 100
Q9. What's the minimum amount would you like to pay for such an app/service?

500 Other

27%

73%
 Appendix 2 : Marketing Materials

1. Facebook and Instagram Ad / Billboards / Newspaper Ads / Hoardings:

2. Google Adwords and SEO Optimisation:

 Appendix 3: Financials

Capital Expenditure:

Monetary Schedule:

Fixed Asset Schedule:

2017-2018:
2018-2019:

2019-2020:

2020-2021:

2021-2022:
Ratios:
Marketing Expenses:
Appendix 4: Partnership Contracts
Appendix 5: Rent Contracts
Appendix 6: PepperFry Contracts
Appendix 7: Builder Contracts