Pre-Feasibility Study

ONLINE BOOKS SERVICE

KITABISTAN

Institute Of Management Studies

University Of Peshawar
BBA 5th Semester
Hasan Saeed Atif Ahmad Zohaib M Osama
19 45 15 55
Table of content
Disclaimer ……………………………………………...1

Executive summary …………………………………...1

Company description ………………………………....2

Management team …………………………………....3

Services ……………………………………………..…4

Industry overview …………………………………......4

Marketing analysis …………………………………….4

Competitive analysis ……………………………..…...5

Marketing plan ……………………...………………….5

Organizational plan ……………………...…………….5

Operational plan …………………………….......……..6

Financial plan ……………………………………..……7

Growth plan ………………………………………...…..8

Contingency plan …………………………………...….8

DISCLAIMER

This information memorandum is to introduce the subject matter and

provide a general idea and information on the said matter. Although, the
material included in this document is based on data/information gathered
from various reliable sources; however, it is based upon certain
assumptions, which may differ from case to case.
The information has been provided on as is where is basis without any
warranties or assertions as to the correctness or soundness thereof.
Although, due care and diligence has been taken to compile this document,
the contained information may vary due to any change in any of the
concerned factors, and the actual results may differ substantially from the
presented information. The prospective user of this memorandum is
encouraged to carry out additional diligence and gather any information
which is necessary for making an informed decision; including taking
professional advice from a qualified consultant/technical expert before
taking any decision to act upon the information.

EXECUTIVE SUMMARY
This feasibility study analyzes the market dynamics and financial problems,
The KITABISTAN which is proposed for bigger cities across the country.
Ideally, Islamabad could be some of the good location to start this
business.
The proposed business is to start an (online book delivery service & also
Receiving we’re not selling books the business just provide service to helps
student or other on daily basis study reading etc.) is to target the students
and working classes who read books allot on daily basis. This business
service is providing a good platform to student or other people who read
allot. In the present modern facilities the KITABISAN is providing a potential
service which can save allot of time and money of the customers. The
customer will just order the book for some specific time in company will
deliver & also receiving service customer pay the rent for specific time
order.
The capital cost involves buying two motorcycles for delivery & receiving, in
off course a big library, and setting up a small office to manage and deal
customers.
The total project cost is about Rs. 1500000; which includes working Capital
of Rs. 50000; capital cost of Rs. 1450000 to buy two motorcycles, which
also include cost of Rs. 280000 to set-up small office with furniture and
equipment, utility bills Rs. 30000 and Books for library.

Some of the most significant considerations for the success of business are
following:
• Good marketing to reach out to people who are seeking such services.
For example: marketing through word of mouth, magazine ads, social
media, etc.
• Be consistently prompt and to build a relationship of trust with the
customers.
• Getting feedback from the customers to further improve the service.

Company description:
The concept of the business comes from online books seller service that
people order online books but their price is too expensive after that
experience the KITABISTAN idea was created to give a good service to
customer at very low price and save people money.
 The small business company which give online books service
Service
The KITABISTAN service is provide to customers all books at low price
with no outgoing for bookshop the KITABISTAN service will deliver
books to the customer home and also receive some specific time on
some charges, KITABISTAN is not selling books it’s a rent service
system.
Location: Islamabad
Management Team:
The management team is considered to divide in four departments.
1. The finance department which can control all financial activates of the
business salaries, daily expenses, delivery and receiving payments,
utility bills, etc.
2. The IT department which can manage & control all the online order of
customer, website, Mobil App, uploading books to website etc. are the
IT department responsibility.
3. The HR department which can manage & control all the social
activities of the business, employee resources, computer, motorcycles
for delivery boys etc.
4. The marketing department which can boost business through
advertisement strategies.

Mission and vision statement:

Mission
 Mission of the business is to achieve the customer’s desire.
 The main object of the business is target market & competence.
 Facilities providing, gain customer’s trust, & compete with target
market.
 Target 500 customers per month.
Vision
 The goals of the company in future are to expand business in all over
the Pakistan.
 In future KITABISTAN see there company position in at the top of the
market.
 Increase services, facilities, etc.
Service:
The nature of the business is to deliver books its online business unique
concept is to save the people time from buying books from bookshop at very
high price. The KITABISTAN service is provide them all books at low price
with no outgoing for bookshop the KITABISTAN service will deliver books to
the customer home and also receive some specific time on some charges,
KITABISTAN is not selling books it’s a rent service process.
Every book contain on its own price of percentage the KITABISTAN service
will charge 30% rent for book on the original price of the book (if the price of
book is Rs. 1000; it will be charge 30% of rent for 45days). No delivery
charges. What if the customer can take book for more than 45days it will be
charge extra charges.

Industry overview:
According to the industry research the KITABISTAN service will very
complex case to decide yes or no decision
There is no similar service like KITABISTAN but in the target market most
of the competitor like bookshop, online book selling services.

Market analysis:
According to market research the customer needs & wants (what they’re
preferred).
The research about target market the customers are mostly like the Novel,
Historical, test preparation books.
In Islamabad most people can buying books from bookshop & online books
service but the fact is that’s too expensive most of the people cannot afford
it.
The data is gathered from some our friends personal experience and some
of data through social media sources. According to this data information its
helps about the pricing and sale strategies of the business plan.
Competitive analysis:
The KITABISTAN service is not about the selling books to customer the small
company provide a rent service of all kind of books either that are Historical,
Novels, test preparation, schools and university books at low price strategy.
 It saves customer time through home delivery at a very low price.
 KITABISTAN is deliver books to customer home & also receive after
specific time which was fixed with customer.
 No home delivery charges only rent for specific time.
 The rent of each book well 30% of its original price for 45 days.

Market competitor:
 The customer buying books itself to go on bookshops which will waste their
time.
 Some of the customer cannot afford those books because of high pricing.
Marketing plan:
 The marketing plan of KITABISTAN is decided to advertise through
social media & digital advertising.
 The social media advertisement through Facebook, twitter and
Instagram.
 The digital advertising there’re some websites on internet they provide
advertisement services.
 They will upload your advertisement on 50k websites for one month at
$20.
 It is the best online advertising strategy that will boost the business.
Organizational plan:
In the organization plan the business it’s include some of rule regulation or some
policy.
 Professionalism: All employees must show integrity and
professionalism in the workplace
 Personal appearance: All employees must follow our dress code
and personal appearance guidelines.
 Corruption: We discourage employee from accepting gifts from clients
or partners.
 Job duties and authority: all employees should fulfill their job duties
with integrity and respect toward customers. Stakeholders and the
community. Supervisors and managers mustn’t abuse their authority. We
expect them to delegate duties to their team members taking into account
their competences and workload. Likewise, we expect team members to
follow team leaders’ instruction and complete their duties with skill and
in a timely manner.
 Collaboration: Employees should be friendly and collaborative. They
should try not to disrupt the workplace or present obstacles to their
colleagues work.
 Communication: All employees must be upon for communication
with their colleagues. Supervisors or team members.
 Conflict of interest: We expect employee’s to avoid any personal, Financial
or other interests that might hinder their capability or willingness to perform their
job duties

Operational plan of the business:

 The operational plan will follow the direct channel of delivery & service.
 The customer will order through websites or mobile App.
 The company will confirm the customer order and then deliver to the customer
home.
 And also receive after specific time.
 Financial Plan:
Assets Amount
Office rent 50000
Office equipment
Furniture 70000
Computers 80000
Library wardrobe 130000
Motorcycles 80000
Utility bills 30000

Total expenses 440000

Total project investment 1500000
1060000
Library books 850000
Backup Amount 210000

Grand Total 1500000

 In the Rs 210000 which we have backup amount will be used for employee
salaries, monthly utility bills, daily office expenses, and for marketing.
 The business have total Rs 1500000 investment by four partners
 It’s a partnership type of business the profit will be divide to the share
percentage of the shareholders.
 Four partners shares:
 Partners  Share %
 P1  30%
 P2  25%
 P3  33%
 P4  12%
 Growth plan:
The KITABISTAN business also plan for future.
 Basically the concept was to online books service on rent system. But further
future plan is all that books which the business have on their library the plan is
to put all that books into soft form on the website for downloading in soft form
that is also a benefit for company because the company are not giving that
books which they have in soft form on their website that’s not free it will also
cost some amount for downloading that book in soft form.
 The customer will pay for downloading books in soft form (The question is why
customer downloads those books in soft form?) actually some books are
already available on internet but the most of the people cannot afford that cost
it’s very expensive. And some people who are not afford our company books
prices it’s also benefit for them to download books in soft form at very low
cost.
 In the third plan is doing blogging on the company website which will very
helpful for company to increase their traffic.

Contingency plan:
The contingency plan of the company is too far if the company face any
consequences in future or risk then company approach to their investor or bank
loan for backup to stabilize all the business activities either that are economic are
social the company will approach to their investor are arranged meeting to plan
how to reduce the risk.