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Plan Overview of Establishing a Greeting Card Selling Company

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Executive summary

There’s nothing superior to anything accepting an earnest greeting card from a companion or adored one. Disregarding bland cards that are effortlessly disposed of, OS.C unleashes greeting cards that will be valued. The vision of our business is to furnish all these card lovers with unique, trendy and customized cards not only for specific occasions but as well as to share some arbitrary thoughts of fun and euphoria. We are a business who create that “extraordinary” card with delicate hands, so others may likewise praise those important minutes, express their deepest reflections, and speak with those they treasure. OS.C aims to provide cards that touch lives; these cards revive, celebrate, and blend tremendous outlooks when contrasted with our rivals at costs that are set beneath the value they provide to customers and accessible at doorstep, on the web and stationary shops. On the off chance that you adore choosing and sending only the exact card for each event, and in case you’re a marvel at planning that flawless card yourself, at that point OS.C cards is the business for you. Our customers can create and keep up an affinity with their loved ones by sending tweaked cards for unique events. OS.C cards can help make or reinforce the enthusiastic associations that customers have a basic requirement for in their connections? more so than numerous computerized types of connections. We at OS.C cards believe that the way individuals communicate with each other significantly affect the psychological and otherworldly parts of wellbeing, and that is a key concentration for our business.

Problem Statement

The changing pattern because of electronic methods for associations which are less expensive and efficient, numerous believe that the overall population isn’t keen on going to business sectors to buy greeting cards. The utilization of E-Cards among the adolescent has nearly killed the prevalence of these cards. In any case, the cell phones and SMS can never convey an indistinguishable assumptions and emotions. Time-tried and ages endorsed, these cards keep on being one of the go-to ways individuals convey what needs be. In spite of having different choices, purchasers still like to note such events as birthday events, commemorations, weddings, births and significantly more by giving customary, paper made greeting cards. Web-based social networking once considered a prime danger to conventional welcome cards is really helping fuel intrigue today. For example, individuals are recognizing more life occasions than any other time in recent memory as a result of updates created through such stages as Facebook. Be that as it may, rather than utilizing online networking as the best way to send well-wishes, it creates the impression that numerous buyers are as yet going to the store to buy a card, also. Buyers additionally are searching for smart and unforeseen better approaches to state things, and onlookers have said this is particularly valid for assertive messages. Notwithstanding when a customer is recognizing something troublesome, they need inspiration to be the predominant fondness the receiver is left with. According to our general knowledge, the availability of such quirky, and unique cards is definitely lacking in our vicinity. You have to really go out and search for fun cards. In order to understand the market needs and requirements, we carried out a market survey. The survey reflected that people were willing to buy cards with eye catching thoughtful designs, but with a touch of humor. we came to know that there was also a lot of demand for customized cards. We’re creating a niche by introducing this to the market as there’s a paucity/scarcity of it right now.

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Proposed Solution

The Company We live in a digital world, but the beauty still continues to lie in the analog world. We love our books, we love our furniture and other nick knacks because it’s physically there. Talking about your sentiments towards others, we get a notification on Facebook, we wish them. We see someone’s status about their engagement or graduation and we congratulate them but we tend to forget. To truly want to express feelings and cherish the moments, it should hold a significance and could be put up on a mantelpiece so that when someone sees it, it reminds them of the person and puts a smile on their face. Even though it’s a mere piece of paper; it has the ability to bring people closer and lift their spirits. It holds a sentimental value and it basically brings you together and it keeps you together.

To start our operation, we analyzed our options? Where we could buy card paper, what would each sheet cost us, how many cards could be made from each sheet, was there another way? Now coming to the difficult part: We thought we could simply think and ideas for many cards would automatically come to our bright minds and viola, there; we’ll have our cards. One amongst us is a very good artist, we thought we’d just give her our ideas and she would just make the card at our demand and there, we’d give it to the printer to print. It wasn’t going to be that easy because as the D-Day started nearing, our brains simply froze. Blank as an exam booklet? no ideas! None at all. So, our blissful thinking that we were going to go analog by selling analog cards got a jolt and literally was shattered. We had to go digital to make our analog enterprise a success. We had to sift through all that junk and ended up designing some mushy and benign ones through our artistic skills. The first such batch that we got printed in small numbers was meant simply to test the waters. Luckily, our first lot of cards got sold like hot cakes. We had decided to keep our minds open and seek feedback from our clients. The feedback that we got back was very interesting? The mushy cards were a success and there was demand for reprinting but we realized that there was an increasing demand for naughty cards, and that is what we did with our second batch. To this the group decision was simple? Lets please our customers. We have received customized orders as well as repeat customers. We oblige to the customers? requirements. We started off with specific set of cards and now we roll out products in a number of different designs, be it mushy, cute, naughty or nasty.

Products

For OS.C cards, uniqueness implies giving a chance to share a surprising, superb connection with family and companions. OS.C interesting birthday and creative cards with quips and chuckling help broaden the life of a greeting card, it hopes to influence the snapshot of exchange more paramount and somewhat our customers need to impart to their loved ones. Our customer base who are vigilant for the following epic minute in their lives need the greeting cards that speak to their qualities? Dynamic, fun, easygoing and open. Progressively they see cards as remembrances, and are available to spending somewhat more to buy cards, highlighting quality materials and a refined carefully assembled feel. We believe our OS.C cards talk straightforwardly to such buyer. As with other different categories of greeting that include? Digitally printed cards? Pop up cards? Handmade cards? Customized cards.

OS.C is seeking offer items for progressively assorted customers to offer its shoppers a chance to celebrate and stamp a wide assortment of different events and personal sentiments. Carving Out a NicheIn reality as we know it where everything is so generic, OS.C cards gives the inclination that the greeting card was precisely composed and custom-made for the receiver. These cards which join top of the line paper and superfluities are a key driver in the business. As opposed to just being viewed as an “a greeting card business,” we need to be seen as a pioneer in significant relations, with a reason to give our associations a more mindful and minding place. In the present very much associated digital world, we can share phenomenal measures of data at the touch of a catch yet with regards to making a relation momentous, nothing replaces this solid piece of paper. For OS.C personalization consolidated quality yet affordability are believed to be compelling devices in achieving the present buyer.

Competition

Apart from cards in local retail stores, the major competitors of OS.C in NUST are, Petrichor, and Sarcardom, Petrichor is essentially being operated at ASAB, specializing in handmade cards and event management. Our cards provide the customers with a digitally printed as well as customization preferences at a low price of Rs 120 for an A4 sized card, whereas Petrichor charges a considerably higher price of Rs 200 for the same sized card, which gives our company an edge Sarcardom which is operating at NBS. Appreciating the fact that they had pitched a pilot yet to determine the acceptance by the market, so a comparative advantage of them cannot be determined at this stage. Being the first movers in Seecs, the momentum gained by OS.C has added value to our product which we anticipate being hard to catch up with as loyalty of stakeholders and customers has already been gauged and a constant demand indicated a progressive curve for the future. Furthermore, we differentiate from the local retail store cards because of our catchy designs and quality at a low price. With the expansion of business, our company also aims to acquire copyrights for our brand. Our competitive edge lies in being the first movers, offering unique cards at a low price tag.

Marketing Plan

Target Customers

Customer segmentation is often taken as an easy job with having a little effect on the revenues, but in reality this is one of the most important aspects of the Marketing Plan which generates profits in accordance to the segments chosen. Let’s elaborate this a little more. Choosing the right customers which will buy the product repeatedly to become a repeat customer. Segmentation is when you divide your customers into a variety of segments and then choose among them. The segment that seems to provide the maximum revenues is chosen initially. The word initially is used because in the beginning stages of any business, it’s never sure that which of the segment will provide with the maximum value/revenues. Gradually as the business begins to develop itself, it recognizes the problems and mistakes it has made e.g. in choosing the right segment.Our Team OS.C, chose two customer segments, to cater the maximum number of people that would become our loyal customers. These two segments are 1. Card Lovers and 2. Occasional Buyers.

Card Lovers are the people which value cards, they don?t need any occasion or festival to buy cards. Usually they don’t just purchase cards for someone else but for themselves as well. These customers often keep the cards as memories of past, they never want to forget. These days this type of people has reduced over time due to the Digital world that has proved to be as a destructive innovation for a variety of businesses. This is the segment we want to revive, keeping the cards close to their hearts, bringing the old good times back again, to relive the memories and to prove to someone that they mean a lot by gifting them a unique trendy card rather than just posting on their wall. Usually students buy cards with famous sayings and inspiring quotes. And the major chunk of this segment are females.

Occasional Buyers are the customers which buy cards specifically on any event, occasion or festival. These type of customers are not that loyal but targeting this segment proves to be beneficial because the number of this target market is greater than Card Lovers. The revenues generated by this segment are higher because at birthdays, anniversaries, mother?s day, father?s day these customers make the most of sales. And buying cards for others on any occasion has reduced but still it?s considered as caring and showing affection to a person.We have sold our cards through setting up stalls in NUST Business School twice. Our average number of customers on the stalls were 50 for each day. And considering the number of students and faculty campus wide we have a total of 11000 people. If we set up a stall at C1 (Concordia1) we will be able to target more customers. An estimate of potential customers is 75 for each day and we have products at different prices (Average Customer Purchases) RS150, resulting to a Potential revenue/day of =75*150=Rs 11250This depends on changing the selling location to acquire more and more customers, shifting from NBS to C1, C1 to C2, and even outside NUST in order to expand and to scale the business.

Customer price sensitivity

During our MVP, we surveyed around 25 people and asked them what price they are willing to pay for each card. And the responses were quite shocking for us. The responses showed that customers were willing to pay more than what we were charging. We were charging Rs 120 for A4 size and customers were willing to pay Rs 150. We were charging Rs 50 for A5 and customers were willing to pay Rs 70. The customers were inelastic to the prices because there is no competition yet.

Unique Selling Proposition (USP)

Ever went to a stationary shop and had problems in finding good descent and trendy cards? All you find is low quality, outdated and expensive cards. OS.C is here to cater these problems to provide you with the cards you need and not to let you suffer with those old cheap cards.How are we different from competitors and why should customers purchase our cards? The answer to this question is simple because our concept about making cards is to sell

  1. Trendy – The cards that are not outdated and which customers can easily choose to buy.
  2. Craftsmanship – The quality of card and designs is unmatchable because we create designs and being students, are aware of what the youth likes.
  3. Originality and uniqueness- Designs we create are not copied from anywhere, they are totally our ideas.
  4. Stir Emotion- People often like emotional quotes on cards that they may gift to someone or keep for themselves.
  5. Low Price- OS.C is using penetration pricing to capture the market with its low priced products of premium quality. We have cards with prices that any competitor cannot afford.6. Customization- We are providing our customers with an opportunity to build their own cards. All they need to do is just send us either their own created design or any picture they wish to be printed on the card and then we provide them with what they are looking for. Customer decides what he /she needs rather than choosing from what we have.Marketing MixProduct& Price As mentioned before, OS.C is providing trendy, low priced and customized cards.We are offering cards in two sizes(1) A4 Rs 120/each(2) A5 Rs 70/each Rs 150 (set of 3)Here OS.C has provided a bundle offering to the customers, if they purchase three A5 cards, they are getting 1 for free. Here the customers are actually attracted to the low price and are automatically forced to purchase the set of 3 cards, after knowing that they can avail the discount. The prices mentioned above are really less as compared to other cards in the market. Reason being the processes such as designing, marketing, inventory management, financials, and packaging is done by our team. The lesser the cost the lesser will be the price.

Place

OS.C has previously set stalls at SEECS. Students came in and praised the effort we had put in and really liked the designs. Sales on the very first day were more than our expectations.If we choose to change our location, what we are expecting to, we will surely get more response and the sales will boost. Initially we are deciding to change our location within NUST and in long-term we will move to retail and online by providing more similar items with an option of customization.PromotionIn the beginning stages of the business the focus is on product quality and lower costs. Later as the business develops the promotional costs begin to increase. Our costs at OS.C for promotion is for Facebook and Instagram Ads. From boosting our posts on social media we are increasing the potential market that is getting aware of our business.Later as the business will move to retail. We will require banners, posters, events and activities that capture attention of the customers. So the promotional costs increase as the business expands to cater a larger segment.

Operating Plan

Location

As the management team is essentially based in NUST business school and the first MVP will be carried out here, the company will initially hold its ground in NUST for effective communication and handling of operations. Initially the business will put up stalls in NBS, to cater to the demanding customers analyzed from our market survey. Furthermore, we will be available in the said locations during the university hours and customers can easily reach us through our social media handles. We will also be delivering cards instantly within NUST, initially. No cost will be incurred as far as the location of the company is involved. After the products are recognized by the customers, the company will be expanding in the form of retail by putting up the products in different stationery shops throughout NUST, in C1, and C2. Furthermore, the online reach will allow the company the flexibility of reaching out to customers in different locations, while remaining centralized in its operations. Moreover, the company will further be expanding to stationery shop across different cities. Liberty Shop and Ripples in Rawalpindi, Hi-tech book shop and Imran Gift centre in Wah Cantt, Global store and One shop in Islamabad and Zia Book Sellers, Malik Book Shop in Faisalabad will make up as our key partners. The products will be delivered in bulk quantity and will give the stationery shop owners a 5% commission off normal sales and 10% if bulk sale of 50 cards is sold in a month. A provisioning of 5% has been made in our projected plans. In case higher incentive is to be paid, it will be from case to case and shall be met from our profits. The management team will ensure the running of and relation with the external partners smoothly as each team member resides in one of the above stated cities. The team will also be making crowd sourcing as a key element of our online channel. The social media pages, will work as crowd sourcing platforms. This will directly link our operations to the value proposition and make the demand for certain designs more evident for us, allowing us to cut the cost of reprinting designs that are not sold that much. Furthermore, customers will directly be a part of the idea generation and designing stage for OS.C, and will gradually be provided with revenue from our streams.

Supplier Relations

OS.C will ensure the quality of the product is maintained when deciding on suppliers. The supply of raw materials and designs is the responsibility of the team. As our products? production revolves around digital printing, the consideration of quality and price is essential. As of now, after testing out a number of suppliers and the market through MVP tests, the company will initially be keeping a single and reliable supplier based in f10 Islamabad for the feasibility of operations during the first quarter of the production, providing the best quality printing at a price of Rs 20 per card, with one photo paper producing a single A4 card and two A5 cards. As a backup, the company will have another supplier located in Wahh Cantt. After generating initial sales and expanding into retailer stores located across different areas as mentioned above, the company will be taking in more suppliers. Furthermore, for the retail stores, the printing will be carried out in bulk quantity. This will further cut down our cost. Currently, there will be only this process that will be outsourced, and the supplier will be paid in full cash right after production. The company plans will be aiming to invest in its own printers in the future to cut down the cost further.

Conversion of Inputs to Outputs to provide Customer Value

In order to maximize customer value, OS.C will be providing unique cards that cater to a wide range of customers, and this will be done by efficiently converting the raw materials into refined outputs. The team itself will be handling all the inventory, designing, packaging and marketing thus ensuring the maintenance of quality at the company’s end. Furthermore, customer loyalty and repeat purchases will also be maintained by catering to the requirements of the customers. Crowd sourcing through online channels will essentially be used to handle the demand and with it the operational decisions of the company.

Production and Distribution

The production process for the cards will take considerable time in the initial stages of designing the product. The team members of the company themselves, will be investing their time in rolling out designs for digitally printed cards, as well as the pop ups and handmade customized cards. The initial seed money will be invested in purchasing of card sheets, packaging material, envelopes, price tags as well as the printing cost, while the available resources will also be made use of to aid the production. The profit generated in the first few sales in NBS will be reinvested in the business to purchase more resources in bulk for future use to aid the company in producing bulk quantity of cards for retail and online channels. All of these operations will be managed by the team, from the purchasing of raw material to the production and distribution of the products.

The distribution of OS.C products will initially be via stall setups in SEECS, where the sales of our products will identify the best-selling items, giving us a feedback on the demand of particular designs. Furthermore, the company will also be partnering up with different stationery shops within NUST, and books and stationery shops that will be considered as our major distribution channel, as mentioned above. Another significant distribution channels will be through our online presence and social media handles, as most of the customized orders will be taken in through this channel. Furthermore, to increase our sales and online presence, the company will be collaborating with social media bloggers and influencers to showcase our products. This process will bring in a new stream of customers and bring in more revenue for the company.

Financial Plan

As mentioned earlier in the operating plan, OS.C plans to go to retail in the future, and also operate online for customized cards. So, the pricing was based on the test results of MVP (marginal viable product) and, we ended up selecting following prices for our products.

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