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DISTRIBUTION POINT. Revolutionary Brand New Concept A Great Home-Based Business Opportunity. Low Investment, Low Risk, Fast Return, High Profit. THE CONCEPT. RETAIL. +. NETWORKING. =. COMMON BRAND DAILY GOODS. BUSINESS MODEL. WHOLESALE. SUPPORT SYSTEM. DISTRIBUTORS. RETAIL STORE.
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DISTRIBUTION POINT Revolutionary Brand New ConceptA Great Home-Based Business Opportunity Low Investment, Low Risk, Fast Return, High Profit
THE CONCEPT RETAIL + NETWORKING =
BUSINESS MODEL WHOLESALE SUPPORT SYSTEM DISTRIBUTORS RETAIL STORE D.C. / D.P. WALK-IN CUSTOMERS SUBSCRIBED CUSTOMERS
Why Customer Subscribe? SAVE TIME SAVE MONEY BUSINESS OPPORTUNITY Earn Multi-level Referral Commission (Member Get Member program) • Every Day Low Price • No Transport Cost (Fuel, Toll, Park) • Cash-back / Personal Discount • Special Promotion Programs NO traffic jam, NO Queue in cashier
Special Promotion SHOPPING FREE REWARD Earn shopping-free voucher worth Rp1.000.000,-by referring five member with Group Purchase @ Rp30.000.000,- Limited promotion for member signed-up before Dec 31st 2009. Terms and conditions applied.
EXPONENTIAL INCOME GROWTH • Multi Level Referral Commission • Total Payout Up to 5.3% of Network Volume
INTRODUCTION Is a RETAIL SYSTEM that provide distribution & administration in non-store format with subscription based consumers. The main concept of BannerPOINT is distribution of retail business elements (finance, logistic, marketing, sales and service) across self-expandable network, thus producing effective yet efficient sales operation. By nature of networking, this integrated system is highly scalable -- both in terms of coverage expansion and volume intensification – and can be easily managed with utilization of recent information technology and implementation of already-matured support system.
Powered by Tiens & Unicore STRENGTH FACTORS • 8 Years in Indonesian Market with about4 Millions Distributors (2008) • Strong brand with high consumer loyalty • Comprehensive integrated Support & Education infrastructure from Unicore
v.s. DISTRIBUTION POINT A CASE COMPARISON STUDY
Alfamart Pre-Requisites Own / Going to Own Location to be used as Store Place(min. 80m2, excluding warehouse & employees housing) Rp425.000.000,-
BannerPoint Pre-Requisites Initial Investment Prediction: ± Rp4.000.000,- only
Franchise Fee v.s. 5 Qualification DISTRIBUTION POINT Rp 45.000.000,- Rp 30.000.000,- ±Rp42.000.000,- purchase volume, returned as direct commission in the following month up to Rp12.000.000,- None Worth Rp 40.000.000,- Set of Tiens branded products, used as Buffer Stock in further distribution op. Renew / 5 Years Once Forever
Another Case Study: INDOMARET Initial Investment: Note: Excluding Tax, Rental Cost, & Distribution Cost Break Event Point / ROI: Rp300.000.000,- 3.1 Years / 32%
D.P. INCOME POTENTIAL Rp300.000.000,- lslkdlskui778 Gross Profit, From Commission Rp9.000.000,- Rp8.000.000,- / mo Pessimistic Assumption:300 subscribed customers, @ Rp1.000.000,- / month x 3% Rp1.000.000,- Operational Cost(Phone, Transport) NET
BUSINESS MODEL DISTRIBUTORS HEAD QUARTER REGIONAL OFFICE DISTRIBUTION CENTER DISTRIBUTION POINT
SUPPLY CHAIN & FINANCES DISTRIBUTORS HEAD QUARTER MAIN SUPPLIERS REGIONAL OFFICE AREA DISTRIBUTORS DISTRIBUTION CENTER DISTRIBUTION POINT
DISTRIBUTION CENTER Achieve 6 in Tiens MP « Qualifications: (Total purchase Rp150.000.000, returned Rp50.000.000,- in the following month) • Requirements: • Providing required legal documents (KTP, NPWP, H.O.) • Providing Logistic Warehouse (Must be easily reachable) • Able to provide at least 16 DP within prior to establishment • Co-operate with settled Tiens stockist, orsubscribe as one if no stockist is availablewithin operation area • Providing delivery to designated D.P. • Providing fund for self inventory
D.C. INCOME POTENTIAL Rp9.000.000.000,- lslkdlskui778 Gross Profit, From Commission Rp450.000.000 Rp150.000.000,- / mo Pessimistic Assumption:30 DP @ 300 Subcribers = 30 x 300 x Rp1.000.000,- x 5% Rp300.000.000 DP Commission + Expenses NET
http://www.bsretail.com Alternative Link:http://bannerpoint.googlepages.com
PRICING ELEMENTS SUPPLIER PRICE VOLUMEDISCOUNT PRODUCTIONPRICE OPERATIONEXPENSES OTHERINCOME • Administration Cost • Logistic Cost • Distribution Royalties • Marketing Commissions • Company Profit PROFITMARGIN CONSUMERPRICE EDLP Pricing Strategy
PRICE REDUCTION STRATEGY MAXIMIZE INCOME • Private Labeling EXPENSES EFFICIENCY • Logistic Efficiencies : Supply Chain Management, Transport Optimization • IT Utilization (RMS) • Divide Promotion Cost with Distributor Centers VOLUME DISCOUNT • Nation-wide purchasing • Dealing with Promissory Notes via Suppliers’ Top Executives • Shorter Term of Payment for increasing Purchase Limit PROFIT REDUCTION • For initial first year, overall company profit is set to 0%
Optimizing Information Technology Note: Specific Implementation is under construction. Software client is undetermined before Jan 25th 2009.