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

E.Executive Summary Business Plan for ‘franchisee outlet’ of Imaginarium® S. 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 About the Company The Business Model About Imaginarium Location Market & Industry Overview Saudi Population Distribution • • • • • • • Competition Scenario Marketing Strategy Market Positioning Pricing Strategy Promotion Strategy Operations Sales Plan • • • Why Jeddah? Toy Industry in Saudi Arabia Market Entry of Educational Supply Co. • • • Financial Plan Controls Contingency Planning .

’ . is dedicated to creating unique ideas and bringing smiles to all through those ideas.‘Bringing smile and happiness to all the children on Saudi Arabia’ ‘Educational Supply Co. Our products will enliven the imagination of every child and it will be an experience combining both ‘fun & learning’.

’ will be jointly owned and operated by the six partners namely: .• Legal Name: ‘Educational Supply Co.’ • Management: 'Educational Supply Co.

Business Model .

Imaginarium S. 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 ..A.

• 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 .

• • • • GDP (Saudi Arabia): EUR 321 billion Population: 28 million Pop.• the Saudi population presents unlocked business opportunities to the baby product retailers and toy manufacturers. Below 15 years: 38% Other Highlights: – High Disposable Income – Healthy Economy – High Purchase Power .

50% .Saudi Population Distribution Percentage/Pop 2.50% 38% 0-14 years 15-64 years 65 years and over 59.

Jeddah was independently ranked 4th in the Africa / MidEast region in terms of innovation in 2009 (2thinknow.Why Jeddah? Gateway to the two Holy Mosques Commercial Hub The demographic profile of Jeddah is well suited for the initial phase of our .

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 .

Message to the Saudi consumer’s will be a commitment to excellent: Quality Safety Educational Value Recreational Value . advertising.’ Basic entry strategies will focus on: Reduced price to penetrate the market.Market Entry of ‘Educational Supply Co. and packaging of products. Better marketing. Innovative Products.

Competition Scenario Market Share (%) 10% 10% 45% 10% ELC Fanater Toy Triangle SAMACO Others 25% .

Marketing Strategy Cluster Value Propositions Customer Feedback Progressive Marketing Strategy In-Store Marketing Local Marketing Develop Positive Image .

Market Positioning .


Promotion Strategies Sales Literature Local Advertising In-Store Promotions Personal Selling .


Implementation Time-Frame January • Business Plan Finalization February • Business Registration • Renting Shop Premises March • Government Permissions • Meeting with Imaginarium Franchisee Team March • Store Decoration • Hiring Staff April • Import of Products May • Inauguration • Start of Sales .

Sales Plan 140000 140000 120000 120000 120000 100000 100000 90000 80000 70000 75000 Sales Cost of Sales 60000 50000 50000 40000 25000 20000 35000 20000 0 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar .

000 .000 308000 Gross Margin % 30.83% 250000 200000 150000 100000 Net Profit 129.000 50000 0 Net Profit % 14.000 Cash Balance (2011) 128.000 Gross Margin (2011) 276.41% Expenses Assets Investment 28000 Net Cash Flow 180.000 Financial Plan Startup 350000 300000 280000 308.Total Start Up Expenses Total Investment 208.

to track results of the business plan and make sure that we implement.Controls • Tracking and follow-up: We intend to have the discipline. . • Market segment focus: We intend to have the discipline to maintain the market segment focus. as an organization.

Contingency Planning  Evaluate Results – Monthly  Monitor Competition  Check Financial Indicators  Revise Marketing & Sales Plan .

Wish Us Success!! .

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