Project planning tools

PROJECT

FREE SHOPPING MOBILE APP

‘’Only for Free Offers”

Department of Business Administration

Turiba University

Summary

The basic idea is to initiate and develop this project is mainly based on the evolving trend and

mindset of the shopping in this e-commerce world. This mobile based application’s motivation is to

provide the information of offers and free compliments that boosts up the buyers to get benefit out

of it from the marketers. There has been a trend on the mobile shopping or online shopping posting

offers on various products almost on all retail segments. However, the unique idea to create this

application is basically to provide the special offer details to the user based on fast moving consumer

goods (FMCG). Although this specific vertical seem to be big in market size the competition and

consumption habbit has been challenging to grow for the new players nor the 2nd or 3rd line market

competitors. This platform will certainly be a market trend setting application that collectively

provide details to the buyers about the offer of the product as well as the validity of the offer also the

availability of the product in the market.

This enhanced application will boost up the seller to directly showcase the product offer and the free

compliments, etc directly to the consumer rather spending more on advertisements. The prime

agenda of this application is to provide the consumer the offers pop up in the market through mobile

platform. However, this application does not support online purchases. On the other hand

irrespective of e-commerce strategy the applications main intention is to provide information or

users of the app can be aware of the discounts and special offers in various range of products.

Unlike other shopping webportals or supported mobile application Special Offer (SO) will not pop-up

any deal to the customers rather the special offer and its validity or the benefits of cost saving to the

product purchase.

PROJECT SCOPE:

The Implemented idea of the project will certainly carry a commercialized platform to display the strength of

any product that are virtually available in the market.

From the business point of view its an advantage to carry the sale of the product increased by posting offers or

discount of any category.

Besides, consumers gets more benefits by utilizing this mobile application which will provide them a complete

idea which product to pick up with special offer and avail discount on to the product.

Eventhough there are plenty of websites and service providers are widely available similar to this sort of

services, the unique idea of this app would be to provide only discounts of categorised products, special offers

and free gifts,etc

The applications will be primarily support with the android, iOS, Windows and blackberry mobile operating

system and virutally available to download at free of cost app store and google play store, etc.

MAIN PROBLEMS:

Due to increase of online trading and purchasing the e-commerce world has dominated the market trends in

this modern web world people are relectunt to go for the offline shopping. The main problem found in the

retail stores the structure of discount are properly aligned to display the scheme of any products. The

collections of range are widely not in stands. The advertisement spent on FMCG category widely on television

and newspaper are quite expensive to convey any promotional offer or discount of the products. These major

problems facing by the new market entrants as well as established brand could not increase the sale due to

lack of awareness of the offers posted by the FMCG industry. The project intitate is a new entrepreneurial

idea that requires additional care each and every step of the project development. Therefore, there are few

factors need to be looked out on the development and implementation.

Its completely a process from business to consumer direct platform that creates an opportunity for the

business to promote through application.

According to a survey conducted recently the report denotes that the offline shopping is about 60%

and the online shopping is 31%

- Skilled work force required

- Competitive application market so need to be unique in promotion

SPECIFIC PROBLEMS MEASURE:

AVERAGE IN-STORE TIME SPENDING OF CONSUMER

- Smart phone users can access the application and be known about the special offers

- Non-Users of the smart phone cant be aware of the special offer

- No of offers are directly informed to the customers in outlets

- App requires a current update 24 X 7 as it might create unwanted issues

- 30% - 40% of the shopping done through walk in to outlets

- Needs a huge database before execution

- Advance tech savvy need to be upgraded

SPECIFIC PROBLEM ANALYSIS

The consistence in decline of traditional shopping leads to lose of brand image to some of the new market

entrants as well as established market players in a specific domain. Therefore, the particular brand has to

agressively promote more often on television, FM radio and newspapers to recall the brand among consumer.

Thus, it leads to a heavy budget on spending for publicity. Despite the fact the other consumer brands such as

electronics & home appliances have made an alternative marketing strategy by promoting e-commerce

websites which somehow manage to stablize their market position. While, other category of consumer brands

have gone digital to position their market as well as understand the consumers need and act accordingly. On

the other hand specific category products such as personal care, home care, FMCG category market is huge

and competitive which are frequently purchased products also consumer stick on a specific brand when it

comes to personal care.

This leads to the 2nd line and 3rd line brands do not get found on the shopping cart they will have to rely on

the store walk-in customers else they will have to promote their brand by shop driven activity.

Therfeore, keeping in mind of the above stated issues the project can be executed in a way that can overcome

all the issues and can become successful in the market. The main motive of this project is to encourage the

new products in the market to promote and increase sale through attractive offers. Although the existing

market leading brands in all verticals have strong in market presence with the proper supply chain our

application can help the leading brands too to communicate with their target customers to keep them update

of the offers and special discounts.

PROBLEM PERSISTENCE RESULTS

As a business perspect if the above problems have already been identified however, the FMCG brand relies on

the strength of their brand and repeatation of product usage. If the problems are not rectified from the

manufacturers or marketers end it may lead to the following

 Brand identity crisis of a product in a FMCG category.

 Excessive spend on advertisement as promotional tool.

 Decrease in sale volume and loss of space allocation in stores

 Market giant can easily dominate the 2nd or 3rd line players.

ANALYSIS OF THE PROJECT

A – Subscribed App users to get the promotional offers with store location and validity of offer and limited

offer data

B – Listing out options of providing all app users a detailed information about store driven offers as well as the

product offers including regular customers in order to boost up sale of a particular store or brand and promote

the new products to trial by availing the offers on the application.

C – Collection of brower database gets randomly offer coupon or voucher code to get the offer availded in a

selective product or in a selective stores. An access code access can be a key of opening up the offer platform

in the virtual retail store on a specific products.

Strength:

 Its a monopoly application for small segment products at the limited territory

 Small scale companies can profit out of this app utilization as promotion medium

 Easy to access and the user friendly interface with current update

 Free to download from the app stores

Weakness:

 The randomized detail on the offer of the product is restricted to selected territory of a country.

 This app doesnt entertain or support with online purchase or provide payment gateway.

 This app only acts as an information provider or shopping guide rather opening up platform to perform

shopping online.

Opportunity:

 The retail market is so huge therefore there are plenty of products can be added to the gallery

 There are untapped segment products which are unmeasureable could help the app unique feature.

 Provide a cost effective advertising platform for the marketers directly to reach consumers end on a

focused market strategy.

Threats:

 In case of the stock exhausted in stores which may lead to disappointment and disloyalty to customer

of the services.

 The copycat app can repeat the same concept with additional features

 The big players in shopping app markets already experimented the concept

ALTERNATIVES SUMMARY

BENEFITS LIMITATIONS COSTS RISKS

A Potential Buyers and

assured for Sale

Reaches the limit audience uses the

smart phone with the app

Low

Beat the competition of shopping app who uses

different market strategy

B

Offer reaches to the all customers including

regular retail store visitor with latest product & Store

offers

Store offer restricts customers into region

with uncertain sale monitor

Average Cooperation partners might not be willing to

pay

C Coupons are valid for

selective products focused purchase of a product

Online coupons reaches random

customer who can accessible for a single

range of product

High

Conditional vouchers can indirectly spoil store

image as well as the brand image also

customer might go confusion to organize

shopping plan.

BEST ALTERNATIVES FOR EXECUTION

The best way to consider the alternative is B which can connect the consumer as well as the brand through the

retails store where consumer gets benefits of the product as well as the store driven offers which sounds

better to sensibly execute the project successfully.

Besides, the decision of considering the option C is not executable which may cause the following

 Undefined customer out reach of the offer

 Avail discount through e-coupon is out dated where leads unfriendly customers

 The coupons are not transferrable to others so that discount validity period may get lapsed.

WORK BREAKDOWN STRUCTURE

TASK NAME DURATION

Kick Off Meeting 1 Day

Resource Calculation Planning 2 Days

Budget Plan of the Project 2 Days

Cost for the Project 3 Days

Data Collection 20 Days

Data Structure Design 15 Days

App Design & Website Design 10 Days

Content Creation 7 Days

Data mapping 4 Days

Hosting Support 3 Days

Testing 4 Days

OS Access/ Technical Aspect 2 Days

Publish & Delivery 2 Days

SO App

Project Managem

ent

Contract

Project Initiation

Requirement Gathering

Project Plan

Strategy & Design

Mobile User Navigation

Storyboard

Design

App/Web Design

Content Management

System

Image Source

Design Style

APP Developm

ent

Graphics & User

Interface

Design Database

Design Front End

Content Creation

Mpping & Requirem

ent

Style Guide

Hosting Support

Configurat ion

Network Integratio

n

Testing & Productio

n

Link App with

Database

Accebility Access

End User Licensing

Publish Fusion

GPS

WORK BREAK DOWN STRUCTURE – ALTERNATIVE B

TASK PLANNING SCHEDULE

ALTERNATIVE - B

TASK NAME DURATION

Kick Off Meeting 1 Day

Resource Calculation Planning 3 Days

Budget Plan of the Project 2 Days

Cost for the Project 5 Days

Data Collection 45 Days

Data Structure Design 15 Days

App Design & Website Design 17 Days

Content Creation 15 Days

Data mapping 4 Days

Hosting Support 3 Days

Testing 4 Days

OS Access/ Technical Aspect 2 Days

Publish & Delivery 2 Days

SO App

Project Management

Project Planning

Project Initiation

Requirement/Ap pointing

Aquisition

Product Data

Retail/Store Data

Design

Front End App/Web

Design Database Design Image Source

Design Style

APP Development

Content Creation

Mpping & Requirement

Hosting Support

Configuration

Location Access

Network Integration

Offer Data Manipulation

Testing & Production

Link App with Database

Accebility Access

Publish Fusion GPS

THE STRATEGIC IMPORTANCE

ECONOMIC VALUE OF THE PROJECT RECOUPMENT

ALTERNATIVES

Duration 1 2 3 4

Descriptions A B A B A B A B

If the Project increases the retailer/brand tagged in app

   

Whether the App listed retailer/brand increase sale

  

Whether the brand image of store/product be increased

   

Will the walk-in to store increase?    

Will the purchase trend change?    

Whether the app useful for the mobile users?    

On the measure 1 -4 scale, Aternative B scores higher than Alternative A

PROJECT PLAN DURATION ALTERNATIVES

A LT

E R

N A

T IV

E A

DURATION DURATION

TASK NAME START DATE FINISH DATE

A LT

E R

N A

T E

B

START DATE FINISH DATE

Project Administration 04-01-2016 10-01-2016 04-01-2016 15-01-2016

Data Manipulation 11-01-2016 17-02-2016 16-01-2016 04-04-2016

Design 18-02-2016 29-02-2016 05-04-2016 22-04-2016

Technical Run/Debugging 01-03-2016 03-03-2016 23-04-2016 25-04-2016

Hosting & Testing 04-03-2016 11-03-2016 26-04-2016 03-05-2016

Publish & Delivery 12-03-2016 14-03-2016 04-05-2016 06-05-2016

PHASE A DURATION: 75 DAYS

PHASE B DURATION: 120 DAYS

3 YEARS & ABOVE 2-3 YEARS 1-2 YEARS < 1 YEAR A 

B 

CRITICAL PATH ANALYSIS

Terms of Alternatives

Alternat

ive

Orientation Administr

ation

Data

Syncronization

Design Technology Implementation Hosting

A 1 5 35 12 18 11 12

B 1 8 60 15 19 15 10

PROJECT START

Content Development

User Interface Development

Mobile App Hosting

Configuration

Integration

Requirement Gathering

Database Structure

Content Design

Graphic Design

Testing Executiion

Project Initiation

Design Website/APP

Database Link Network Mapping

Data Upgrade

GANNT CHART FOR ALTERNATE A

Period H ighlight:1

Plan Actual

% Com

plete Actual (beyond plan)

% Com

plete (beyond plan)

PLA N

PLA N

A CTU

A L

A CTU

A L

PERCEN T

A CTIV

ITY STA

RT D

U RA

TIO N

STA RT

D U

RA TIO

N CO

M PLETE

PERIO D

S

1 2

3 4

5 6

7 8

9 10

11 12

13 14

15 16

17 18

19 20

21 22

23 24

25 26

27 28

29 30

31 32

33 34

35 36

37 38

39 40

Kick O FF M

eeting 1

1 1

1 100%

Resource M apping

2 3

1 3

100%

Budget Plan 2

2 2

3 35%

Cost Estim ate

4 5

4 5

10%

D ata Collection

5 15

4 20

85%

D ata Structure

6 11

4 16

85%

Program m

ing 7

4 7

4 50%

Coding 8

2 8

2 60%

D esign

6 2

5 2

75%

D ata Correlation

9 5

9 6

100%

W ebsite D

esign 6

2 6

2 60%

A ccess Control

10 3

10 3

0%

N etw

ork Integration 11

2 11

3 50%

D ata M

apping 12

3 12

2 45%

W eb H

osting 13

4 13

4 19%

A pp H

osting 13

3 13

3 80%

Testing 14

2 14

2 74%

Play store Listing 15

2 15

2 80%

Publishing 15

1 15

1 95%

Process Im plem

entation 16

3 16

3 100%

A LTER

N A

TIV E A

COST ESTIMATE FOR ALTERNATIVE - A

P R

O JE

C T

T E

A M

PROJECT TASKS

HOUR of

Work/

Month

Salary Covered Total Social Tax VAT Total

(Tax+VAT)

Project Manager 0.78 $1 200.00 $936.00

Assitant Project Manager 0.78 $750.00 $585.00

Project Assistant 0.86 $500.00 $430.00

Project Developer 0.82 $450.00 $369.00

Concept Narrator 0.48 $400.00 $192.00

Subtotal

$2 512.00 $605.14

$1 906.86

D E

V E

LO P

M E

N T

T E

A M

Application Designer 0.96 $1 000.00 $960.00

Software Developer 0.82 $950.00 $779.00

Content Manager 0.48 $856.00 $410.88

Coding Agent 0.23 $750.00 $172.50

Programmer 0.86 $800.00 $688.00

Creative Designer 0.52 $650.00 $338.00

Database Manager 0.99 $900.00 $891.00

Subtotal

$4 239.38 $1 021.27

$3 218.11

P R

O JE

C T

H O

S T

IN G

Website Hosting 0.48 $800.00 $384.00

Network Engineer 0.42 $650.00 $273.00

Software Engineer 0.58 $650.00 $377.00

Testing & Configuration 0.18 $250.00 $45.00

Playstore/I-tunes publishing 0.12 $460.00 $55.20

Sotware License 0.24 $500.00 $120.00

Subtotal

$1 254.20 $302.14

$952.06

P R

O JE

C T

T E

ST IN

G

App Content Link 0.16 $700.00 $112.00

$23.52 $88.48

End User Licensing 0.14 $550.00 $77.00

$16.17 $60.83

Website Management 0.46 $950.00 $437.00

$91.77 $345.23

OS Compatibility Test 0.28 $550.00 $154.00

$32.34 $121.66

Network Support 0.18 $880.00 $158.40

$33.26 $125.14

Subtotal

$938.40

$197.06 $741.34

U T

IL IT

IE S

Office Rent 0.99 $500.00 $495.00

$103.95 $391.05

Telecom Charges 0.99 $200.00 $198.00

$41.58 $156.42

Electricity 0.99 $148.00 $146.52

$30.77 $115.75

Transport 0.99 $350.00 $346.50

$72.77 $273.74

Stationery 0.99 $80.00 $79.20

$16.63 $62.57

Subtotal

$1 265.22

$265.70 $999.52

T O

T A

L

Total Salary

$8 005.58 Incl. VAT $6 077.04

Management

Implementation

$938.40

$741.34

Total office Cost

$1 265.22

$999.52

TOTAL MANAGEMENT EXPENDITURE $7 817.90

CHANNEL/NETWORK PARTNER INVESTMENT

No of Partners

Cost VAT Total(VAT)

Development 5 0.21 Content Sharing $500.00 $2 500.00 $525.00

Advertisement $300.00 $1 500.00 $315.00

Marketing $350.00 $1 750.00 $367.50

Maintenance $120.00 $600.00 $126.00

$6 350.00 $1 333.50 $5 016.50

Implementation 5

Project Adoption $200.00 $1 000.00 $210.00

Content Updation $450.00 $2 250.00 $472.50

DBMS $300.00 $1 500.00 $315.00

Total Implementation Cost $3 750.00 $787.50 $2 962.50

Total Investment for Development $5 016.50

Total Investment for Implementation $2 962.50

Total Management Expenditure

$7 817.90

Total Project Cost $15 796.90

Subsidary Cost 10% 1579.69

Total Budget of the Project $17 376.59

GANTT CHART FOR ALTERNATIVE B

P e

rio d

H igh

ligh t:1

Plan A

ctual %

C om

plete A

ctual (beyond plan )

% C

om plete (beyond plan)

P LA

N P

LA N

A C

TU A

L A

C TU

A L

P ER

C EN

T

A C

TIV ITY

STA R

T D

U R

A TIO

N STA

R T

D U

R A

TIO N

C O

M P

LETE P

ER IO

D S

1 2

3 4

5 6

7 8

9 1

0 1

1 1

2 1

3 1

4 1

5 1

6 1

7 1

8 1

9 2

0 2

1 2

2 2

3 2

4 2

5 2

6 2

7 2

8 2

9 3

0 3

1 3

2 3

3 3

4 3

5 3

6 3

7 3

8 3

9 4

0 4

1

K ick O

FF M eetin

g 1

1 1

1 1

0 0

%

R eso

u rce M

ap p

in g

2 3

1 3

1 0

0 %

B u

d get P

lan 2

2 2

3 3

5 %

Co st Estim

ate 4

5 4

5 1

0 %

D ata Co

llectio n

5 25

4 20

8 5

%

D ata Stru

ctu re

6 22

4 15

8 5

%

P ro

gram m

in g

7 6

7 6

5 0

%

Co d

in g

8 2

8 2

6 0

%

D esign

6 2

5 2

7 5

%

D ata Co

rrelatio n

9 5

9 6

1 0

0 %

W eb

site D esign

6 2

6 2

6 0

%

A ccess Co

n tro

l 10

3 10

3 0

%

N etw

o rk In

tegratio n

11 2

11 3

5 0

%

D ata M

ap p

in g

12 3

12 2

4 5

%

A p

p C

o n

te n

t L in

k 12

5 12

5 6

2%

W e

b H

o stin

g 13

4 13

4 1

9 %

A p

p H

o stin

g 13

3 13

3 8

0 %

Te stin

g 14

2 14

2 7

4 %

S y

n ch

ro n

ize D

a ta

15 4

15 5

6 9

%

P H

P / O

ra cle

T e

st 16

3 16

3 74

%

S o

ftw a

re L

ice n

se 17

3 17

3 8

4 %

P la

y sto

re /I-tu

n e

s L ist

18 5

18 4

4 5%

O S C

o m

p atib

ility 20

2 20

2 8

0 %

P u

b lish

in g

22 1

22 1

9 5

%

P ro

ce ss Im

p le

m e

n tatio

n 24

3 23

3 1

0 0

%

C o

n te

n t A

d o

p tio

n 25

2 25

2 1

0 0

%

A L

T E

R N

A T

IV E

B

COST ESTIMATE ALTERNATIVE - B

0.2409

P R

O JE

C T

T E

A M

PROJECT TASKS HOUR of Work/ Month

Salary Covered

Total Social Tax VAT Total

(Tax+VAT)

Project Manager 0.78 $1 200.00 $936.00

Assitant Project Manager 0.45 $750.00 $337.50

Project Assistant 0.86 $500.00 $430.00

Project Developer 0.82 $680.00 $557.60

Network Engineer 0.48 $400.00 $192.00

Subtotal

$2 453.10 $590.95

$1 862.15

D E

V E

LO P

M E

N T

T E

A M

Application Designer 0.98 $1 000.00 $980.00

Software Engineer 0.82 $950.00 $779.00

Content Manager 0.48 $856.00 $410.88

Coding Agent 0.65 $750.00 $487.50

Programmer 0.86 $800.00 $688.00

Software Developer 0.52 $650.00 $338.00

Database Manager 0.95 $900.00 $855.00

Subtotal

$4 538.38 $1 093.30

$3 445.08

P R

O JE

C T

H O

S T

IN G

Website Hosting 0.48 $800.00 $384.00 Network &OS Host 0.78 $650.00 $507.00

App Host 0.58 $650.00 $377.00

Testing & Configuration 0.48 $850.00 $408.00

Playstore/I-tunes

publishing 0.12 $460.00 $55.20

Sotware License 0.24 $500.00 $120.00

Subtotal

$1 851.20 $445.95

$1 405.25

P R

O JE

C T

T E

ST IN

G

App Content Link 0.18 $700.00 $126.00

$26.46 $99.54

Synchronization 0.22 $550.00 $121.00

$25.41 $95.59

Website Management 0.46 $300.00 $138.00

$28.98 $109.02

OS Compatibility Test 0.28 $400.00 $112.00

$23.52 $88.48

Network Support 0.44 $900.00 $398.70

$83.73 $314.97

Subtotal

$895.70

$188.10 $707.60

U T

IL IT

IE S

Office Rent 0.98 $500.00 $490.00

$102.90 $387.10

Telecom Charges 0.98 $100.00 $98.00

$20.58 $77.42

Electricity 0.98 $148.00 $145.04

$30.46 $114.58

Transport 0.98 $85.00 $83.30

$17.49 $65.81

Stationery 0.98 $80.00 $78.40

$16.46 $61.94

Subtotal

$894.74

$187.90 $706.84

T O

T A

L

Total Salary

$8 005.58

$6 712.48

Implementation

$198.40

$707.60

Total office Cost $1 265.22 $706.84

TOTAL MANAGEMENT EXPENDITURE $8 126.93

CHANNEL/NETWORK PARTNER INVESTMENT

No of Partners Cost VAT Total(VAT)

5 0.21

Content Sharing $500.00 $2 500.00 $525.00

Advertisement $300.00 $1 500.00 $315.00

Marketing $350.00 $1 750.00 $367.50

Maintenance $120.00 $600.00 $126.00

$6 350.00 $1 333.50

$5 016.50

Implementation 5

Project Adoption $50.00 $250.00 $52.50

Content Updation $40.00 $200.00 $42.00

DBMS $30.00 $150.00 $31.50

Total Implementation Cost $600.00 $126.00 $474.00

Total Investment for Development $5 016.50

Total Investment for Implementation $474.00

Total Management Expenditure $8 126.93

Total Project Cost $13 617.43

Subsidary Cost 10% 1361.7426

Total Budget of the Project $14 979.17

COMPARISION OF PROFITABILITY - IRR

ALTERNATIVE - A 2016 2017 2018 2019

50000 60000 70000 80000

Income without VAT

Project Development cost excl. VAT

-10209.2

Project Implementation cost excl. VAT

-938.4 -938.4 -938.4 -938.4

Cash Flow -10209.2 49061.6 59061.6 69061.6 79061.6

Corporate TAX (15%) 15% 7359.24 8859.24 10359.24 11859.24

Cash without TAX 41702.36 50202.36 58702.36 67202.36

Total Cash Flow -10209.2 31493.16 39993.16 48493.16 56993.16

Discount Factor R=10% 1 0.909 0.826 0.751 0.683

Present Value (PV) 18420.91 26148.18 33875.44 41602.71

Net Present Value (NPV) 8211.72 15938.98 23666.24 31393.51

Discount Factor R=20% 1 0.83 0.694 0.579 0.482

Present Value (PV) 16034.05 23117.1 30200.15 37283.20

Net Present Value (NPV) 5824.85 12907.9 19990.95 27074.00

Discount Factor R=30% 1 0.769 0.592 0.455 0.350

Present Value (PV) 14016.28 20554.73 27093.19 33631.64

Net Present Value (NPV) 3807.08 10345.53 16883.99 23422.44

R1 = 0.1; R2 = 0.3

IRR = 88%

)( 121

21

1 rr NPVNPV

NPV rIRR

rr

r 

 

ALTERNATIVE - B 2016 2017 2018 2019

50000 60000 70000 80000 INCOME WITHOUT VAT

PROJECT DEVELOPMENT COST EXCL. VAT

-11527.86

PROJECT IMPLEMENTATION COST EXCL. VAT

-895.7

CASH FLOW -11527.86 49104.3 48472.14 58472.14 68472.14

CORPORATE TAX (15%) 15% 7365.64 7270.82 8770.82 10270.82

CASH WITHOUT TAX 41738.65 41201.31 49701.31 58201.31

TOTAL CASH FLOW -11527.86 30210.79 29673.45 38173.45 46673.45

DISCOUNT FACTOR R=10% 1 0.909 0.826 0.751 0.683

PRESENT VALUE (PV) 15936.47 15447.98 23175.25 30902.51

NET PRESENT VALUE (NPV) 4408.611 3920.12 11647.39 19374.65

DISCOUNT FACTOR R=20% 1 0.83 0.694 0.579 0.482

PRESENT VALUE (PV) 13547.09 13101.11 20156.111 27211.11

NET PRESENT VALUE (NPV) 2019.24 1573.25 8628.251 15683.25

DISCOUNT FACTOR R=30% 1 0.769 0.592 0.455 0.350

PRESENT VALUE (PV) 11711.19 11297.85 17836.31 24374.76

NET PRESENT VALUE (NPV) 183.33 183.33 6308.45 12846.90

R1 = 0.1; R2 = 0.3

IRR = 69 %

)( 121

21

1 rr NPVNPV

NPV rIRR

rr

r 

 

RISK ANALYSIS OF THE PROJECT

SCALE LOW

0 - 5

MODERATE

6 - 10

SIGNIFICANT

11-15

HIGH

16 - 20

A LE

T E

R N

A T

E A

Risk Description Risk Scenario Risk Rating Control Measure

Economical

Classification of customers uses Mobile App

Ignorance of non-users of smart phone

Offers not seen by potential customers

Inconsistence of Offer Updating

4

Massive App promo

post production

Technical

Poor App Design and not user friendly

Network slowdown either service provider or

the application

Error occurrence while updating versions

6

Auto update of

version and prompt

maintenance

Commercial User might not like it as its not trending

App without online purchase might annoy user

11 Attractive layout

with trending offer

COMPARISION OF ALTERNATES

Economic Technical Commercial Measure of Risk

Alternative – A 4 6 11 21

Alternative - B 5 12 14 31

A LT

E R

N A

T E

B

Risk Description Risk Scenario Risk Rating Control Measure

Economical Partnering with retailer and brands refuse to

pay if the app doesn’t get successful

Mistakes in figures lead a massive controversy

with retailer and customer

5

Retailer/Brand share

dividend to boost up

the app Positioning

Technical Delay in page accessing or loading while

browsing offers. Listed out offers grabbed

and before the validity

12 Advanced tool to

enhance

performance

Commercial Products offers are limited and customer

get disappointed if stocks are limited.

14 Conditions & Terms

to be persuaded

before user licensing

Degree of Risk

Alternative B Comparatively is economically riskier than Alternative A however, the concept is likely agreeable

from the partner which has a huge hope and guarantee on return. However, the possibility of rejection of the

Alternative A as the degree of risk is similar but the scope doesn’t defend the investor.

4. Project Description

Title

SO – Mobile App for Special offer Shopping

Project

B

Main problem

It’s an indeed era of shopping online and mobile device, although certain products cannot be sold online unless we visit physically in person to buy it such a category of products are often FMCG category which we use in daily life. This products category is so huge but quite often spend on advertisement and repeatedly promoting brand in order to register the brand in the mind of the consumer. In order to reduce the stress of the advertisement and reach the audience at affordable cost through mobile device with only special offers of the products, the mobile application Special offer is looking at to deliver as a shopping platform. Since, this mobile application is providing online shopping guide for the category of products which could not be quite often sold in online shopping the unique idea is to provide a shoppers an information about offers of the products. For instance if a dish washing liquid is having some offer or extra quantity for sale or it offers some free compliment with the product that will be available in the app at the respective category with the available store detail as well as the offer validity period. Hence, the user has to install the app on their mobile phone and to register their location and city with the app. Subsequently offers will be available for display in the various category.

The goal of solving the problem

1. Boost up the sale of new market entrant to the category

2. Adapt to modern technology of advertising at low cost

3. Open up new target groups

Realization

The idea of this project, is to promote the offer of the product or stores offer to the consumer directly

through mobile app. Unlike other shopping application this project will not provide an option to shop online

of all category of product however, the product that are widely available in store to be picked up in person

will be listed with only offers. Therefore, the non-offer products of the same category will not be listed out

while searching up while browsing through the app.

Project duration 4 Months (120 Days)

Start Date 04-01-2016

End Date 06-05-2016

Project budget: $ 20000

Project Management Cost $8126.23

Project Investment $6852.24

CONCLUSION

Its has been since many years the e-commerce trend has totally occupied the shopping trend and

subseqently the shopping offline has been slowly redcuing its face. As a result the retail store are

losing revenue due to decrease in walk-in customers. This leads to the decrease of sale in particular

the FMCG products a report denotes clearly. Therefore, the products at this category tried to enable

a marketing strategy called multi level marketing or referral marketing. This initiate infact opened up

a platform for the new market entrants without any barriers. The spending on advertisement has

reduced and the Return on Investment also has grown up. However, the retail store is yet to suffer of

this concept where as the brand image of the products have started losing and subsequently the

margin of the product sale is impacted to the retailers.

This special offer app will open up a new gateway for the small medium entrepreneurs who rely on

retailer and departmental store shopping promotors who are frequently pop up with offers in store.

This app would be a most downloaded for the shopping lovers. The objective of the app will prove its

existence and unique feature by providing the list of offers on a daily usage products and other fast

moving consumer goods both the product market offer as well as the retail store based offer. The

execution of the app will accelerate the revenue for the administrator of the offer by driving offer

advertisement from various brands and products on the mobile devices. Thus execution of app will

be an unique product promotional vehicle at affordable cost as well as shopping guide to the users.

REFERENCES

I. https://bestmobileapplicationdevelopmentcompany.wordpress.com/2013/09/10/how- mobile-app-development-is-bridging-the-gap-between-online-and-offline-shopping/

II. http://shoprite.com

III. Project Management tenth Edition , A System Approach to Planning, Scheduling and

controlling, Herald Kerzner

IV. http://accounting-simplified.com/management/investment-appraisal/internal-rate-of-return-

irr.html

V. www.marketingcharts.com

VI. www.slideshare.net