ERP511

First Draft
Fall Course
2011

Submitted to: Prof. Tarek Abou Ouf

By

• Mohammad M. AlMansour (JAM 010)

• Faiz S. AlHarbi (JAM 087)
• Yousef A. Elkhereji (KBM 062)
• Wessam Alnwab
• Mohammed K. Hanawi
• Muataz AlHarbi
Executive Summary

Business Plan for ‘franchisee outlet’ of Imaginarium® S.E.

Educational Toys Store

At Red Sea Mall in Jeddah

Providing the right ingredients of fun, learning and

enjoyment for children of all ages.

The partners emphasize hard work and attention to detail to

ensure the end customer of satisfaction of money well spent
for their kids.
 CONTENTS

• Vision & Mission • Competition Scenario

• About the Company • Marketing Strategy

• The Business Model • Market Positioning

• About Imaginarium • Pricing Strategy

• Location • Promotion Strategy

• Market & Industry Overview • Operations

• Saudi Population Distribution • Sales Plan

• Why Jeddah? • Financial Plan

• Toy Industry in Saudi Arabia • Controls

• Market Entry of Educational • Contingency Planning

Supply Co.
‘Bringing smile
and happiness ‘Educational Supply
to all the Co. is dedicated to
children on creating unique
Saudi Arabia’ ideas and bringing
smiles to all through
those ideas. Our
products will enliven
the imagination of
every child and it will
be an experience
combining both ‘fun
& learning’. ’
• Legal Name: ‘Educational Supply Co.’
• Management:
'Educational Supply Co.’ will be jointly owned and operated by the
six partners namely:
Business Model
Imaginarium S.A., one of the largest
specialized toy retail companies in the world

Based in Spain

340 shops in 28 countries

Maximum quality and safety guarantees

Two principal objectives on which the company

is based are:

For children to have more and better fun

To promote more comprehensive education and
development for children
 • Red Sea Mall
• Area: 200 sq. m

Benefits:
a safe place where the family can
enjoy a truly relaxing shopping
experience

one of the busiest and

sophisticated malls in Jeddah

Adequate Security

Ample Parking Space

• the Saudi population presents unlocked business
opportunities to the baby product retailers and toy
manufacturers.

• GDP (Saudi Arabia): EUR 321 billion

• Population: 28 million

• Pop. Below 15 years: 38%

• Other Highlights:
– High Disposable Income
– Healthy Economy
– High Purchase Power
Saudi Population Distribution
Percentage/Pop
2.50%

38%

0-14 years
15-64 years
65 years and over
59.50%
 Why Jeddah?

Gateway to the two Holy

Mosques
Commercial Hub
The demographic profile of
Jeddah is well suited for the
initial phase of our business.
Jeddah was independently
ranked 4th in the Africa / Mid-
East region in terms of
innovation in 2009
(2thinknow.com)
 Toy Industry in Saudi Arabia

Saudi Toy Market stands at SR. 600 million (2006)

Saudi Arabia imports 400 major brands of toys

Large market for Chinese products

Demand for toys is increasing by around 10 to 15 percent a

year

Government is monitoring ‘safety’ of toys regularly

Market Entry of ‘Educational Supply Co.’

Basic entry strategies will focus on:

Reduced price to penetrate the market.

Innovative Products.

Better marketing, advertising, and packaging of products.

Message to the Saudi consumer’s will be a commitment to excellent:

Quality
Safety
Educational Value
Recreational Value
 Competition Scenario

Market Share (%)

10%

10% ELC
Fanater
45%
10% Toy Triangle
SAMACO
Others
25%
 Marketing Strategy

Cluster Value
Propositions

Customer In-Store
Progressive
Feedback Marketing
Marketing
Strategy

Local Develop
Marketing Positive Image
Market Positioning
Pricing Strategy

PRICING EXCELLENCE

IMPROVED
PROFITABILITY
 Promotion Strategies

Sales
Literature

Local In-Store
Advertising Promotions

Personal
Selling
OPERATIONS
 Implementation Time-Frame

January February March March April May

• Business • Business • Government • Store • Import of • Inauguration

Plan Registration Permissions Decoration Products • Start of
Finalization • Renting • Meeting with • Hiring Staff Sales
Shop Imaginarium
Premises Franchisee
Team
 Sales Plan

140000
140000

120000 120000
120000

100000
100000
90000

80000 75000
70000
Sales
60000 Cost of Sales
50000 50000

40000 35000

25000
20000
20000

0
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
 Total Start Up
Expenses
208,000 Financial Plan
Total Investment 308,000

Startup
Gross Margin (2011) 276,000
350000
308000
300000 280000
Gross Margin % 30.83%
250000

200000

150000

100000
Net Profit 129,000
50000 28000

0
Net Profit % 14.41% Expenses Assets Investment

Net Cash Flow 180,000

Cash Balance (2011) 128,000

 Controls

• Tracking and follow-up: We intend to have the

discipline, as an organization, to track results of the
business plan and make sure that we implement.

• Market segment focus: We intend to have the

discipline to maintain the market segment focus.
 Contingency Planning

 Evaluate Results – Monthly

 Monitor Competition

 Check Financial Indicators

 Revise Marketing & Sales Plan

Wish Us Success!!