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Jul 07, 2015
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Group Members
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• K-2 Books is a start-up used bookstore in theSkardu Ali Chowk area.
• It is the goal of the company management toacquire local market share in the used bookstoreindustry through low price, a dominant selection ofproducts, a competitive variety of services includinga buyback/trade program, membership offering andhard to find book search, plus a relaxing, friendlyenvironment that encourages browsing and readingroom with DSL and Wi-Fi facilities etc.
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• K-2 Book's mission is to provide used quality literature of all types at the lowest possible prices in the city of Skardu.
• The company additionally seeks to provide a comfortable atmosphere for its clients that promote browsing, relaxation, and an enjoyable environment with DSL and Wi-Fi facilities to spend extend time in. K-2 Book's attraction to its customers will be our large selection of books, magazines
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• K-2 Book will offer a wide range of old books
• This includes just about every conceivable category including
• fiction, non-fiction,
• business, science,
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• books for college and university students.
• K-2 Books will have a relaxed "reading room" type atmosphere that we will encourage through the placement of chairs, couches, DSL and Wi-Fi facility etc,
• a separate portion for female customers/students.
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• The bookstore industry as a whole is going through a large consolidation.
• Previously, the market was dominated by local, small stores.• With the advent of the "superstore" as created by Afzal
brother”s,Modern Stationary mart and Mr Books , the largest players in the market have been able to gather significant market share and drive many independent booksellers out of the market.
• Where independent booksellers can still create a viable position for themselves within the market is in the used books segment.
• This segment generally does not attract big companies since the "superstore" concept is much more difficult to replicate in a market with such low profit margins.
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• This tends to favor the local independent bookseller in the used book market segment
• Our business is a newly introducing and unique featured business in the city as there is no such kind of Book shop is available to facilitate the residents ,especially the college and university students.
• As Skardu is a developing city and new professional colleges and university are establishing but the students have facing difficulties in finding books and other materials related to their course. They have to demand their books from down cities which is very difficult and costly and hard to get on time
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• Management believes that the economic slump may be an advantage to the used bookstore industry. As customers cut back on purchasing, used bookstores will look more attractive to customers who still wish to purchase books. Therefore, management believes this may be a good time to get into the industry and gain market share.
• Our main competitors are: Modern stationery,afzal Brothers,Sodey Book depo and other local new and used bookstores.
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• Increasing rate of literacy in the city.
• Limited number of competitors
• Establishment of KIU campus.
• Coaching centers and schools.
• Professional colleges
• No legal restriction
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• Our competitor may adopted our business trend
• Keep changing the syllabus
• E-Book concepts
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• Q = n * q * P
• Q = Total market potential
• n = Number of buyers in the market
• q = Avg. quantity purchased by a buyer/year
• P = Average unit price
• n=122500,q=2,p=$2
• Q=122500*2*2=$490000
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• We divide the population of Skardu into four different segments according to age.
• 5 to 20 Years(30 %),
• 20 to 35 years(35 %),
• 35 to 50 years(20 %) and
• 50 to 65 years(15%)
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Segmentation on the basis of education
• 5 to 20 Years(30 %), Nursrey to intermediate
• 20 to 35 years(35 %),Graduation to Master level
• 35 to 50 years(20 %)professionals and
• 50 to 65 years(15%) others
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• our target area 20 to 35 years old are the students of Graduation to Master level students and professional colleges
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5 to 20 year, 30%
20 to 35 year, 35%
35 to 50 year, 20%
50 to 65 year, 15%
Population of Skardu
5 to 20 year
20 to 35 year
35 to 50 year
50 to 65 year
• Original used book on reasonable price
• Buy back trade
• Membership facility
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• In order to survive and expand, K-2 Books must keep the following issues in mind:
• We must attain a high level of visibility through the media, billboards, and other advertising.
• We must establish rigid procedures for cost control and incentives for maintaining tight control in order to become the low-cost leader in used books.
• We must continuously organize promotion campaign every year in University and colleges.
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• Our targeted buyers is 35% of total population of skardu which is 122500 and the 35% of our targeted buyers will purchase averagely 2 books which average price is $2.00 per year.
• 1st year 42875 buyers purches averagely 2 books on average sale price is $2.00 so the frist year we can generate $171500.Based on 1st year sales we can sale out 128625 units within 3 years and can generate 514500 dollars revenue.
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• Our start-up expenses come to $178,000, which are largely single time fees associated with opening the store. These costs are financed by both private investment and short- and long-term NBP guaranteed loans.
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Expense Asset Investment Loan
$112,180 $65820 $70,000 $108000
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