BUSINESS PLAN (GST302)

Name: Adam Abdulbasit

Matric No: NOU154741436

Email Address: maidmsin@yahoo.com

Phone Number: 07062053556

Sex: Male

Disabilty: None

Current Profession: Student

Programme of Study: B.Sc Economics

Department: Social Science

Faculty: Social Sciences

Study Centre: Lagos Study Centre, VI, Lagos.

Zone: South West

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1.0 Executive Summary – Men’s Shoe Sales Business Plan

PREMIER SHOE STORE will operate as a men-only shoe store in Ajah, Lagos.

Our findings made us understand that Ajah residents badly needs an upscale shoe

store for men because the current stores have an inadequate selection. Currently,

men that need a special pair of shoes often must travel up to Lagos Island to find

the right shoes.

Premier Store will have an unmatched, extensive selection of different shoes.

Generally, the size of Premier Store' selection is cost prohibitive due to all the

different sizes that must be stocked per style. Premier Store will have a unique

business model that allows them to have an extensive selection at the cost of only

stocking one size per style. This is accomplished through a special relationship

with the wholesaler so Premier Store can receive a customer's needed size within

two days. Rush overnight shipping is available at additional cost.

Premier Store will leverage Kulest Store' extensive knowledge of the men's retail

shoe industry to quickly gain market share.

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The company will use innovative ways to sell, and attract consumers to purchase

Premier shoes. We will also use interactive promotional strategies to gain customer

interest and sustain customer loyalty.

1.1 Keys to Success

The key to success is to meet the demand for an upscale men's shoe store with a

wide selection and focused customer attention. The following are considered

 Fashionable designs.

 Fast customer delivery.

 Well-trained employees.

1.2 Objectives

The objectives for the first three years of operation include:

1. To create a product-based retail store whose primary goal is to exceed

customer's expectations.

2. To increase the number of clients served by 25% per year by serving an unmet

need with outstanding selection and customer service.

3. To develop a start-up business, surviving off of its own cash flow.

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1.3 Mission

Premier Store' mission is to provide Ajah, Lagos with an upscale selection of men's

shoes and outstanding customer service. We exist to attract and maintain

customers. When we adhere to this maxim, everything else will fall into place. Our

services will exceed the expectations of our customers.

2.0 Company Summary

Premier Store is an upscale men's shoe store located in Ajah, Lagos. Customers

looking for these shoes must travel up to Lagos Island. Premier Store will be able

to offer a wide selection because they will typically only have one size available

per style. This one size is used as a demonstrative model. All other sizes are

available within two days.

2.1 Company Ownership

Premier Store is a sole proprietorship owned by Adam Abdulbasit.

2.2 Start-up Summary

Premier Store will incur the following start-up costs:

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 Computer system with CD-RW, printer, Microsoft Office, QuickBooks Pro,

and POS software.

 POS terminal/cash register.

 Back office desk and chair.

 Front of store counter.

 Shelving racks.

 Display racks.

 Chairs, mirrors.

 Assorted halogen track lighting.

2.3 Start-Up Capital

START-UP REQUIREMENTS

Start-up Expenses

Legal #200,000

Stationery etc. #100,000

Website development #120,000

Advertising & Rent #1,200,000

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 Others #350,000

TOTAL START-UP EXPENSES #1,970,000

3.0 Products

Premier Store will sell upscale men's shoes. The general categories of shoes that

will be sold are:

 Sandals

 Stylish work shoes

 Loafers

 Dress shoes

 Canvas athletic/stylish shoes

Premier Store will strive to have one of the largest selection of shoes in Lagos,

barring the larger stores in Lagos Island. Premier Store will accomplish this by

having one size per style in stock as a demonstration model. Premier Store will

then order the style in the needed size and it will arrive within two days (rush one

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day service is available). This will be accomplished through a special relationship

with the wholesaler who is able to send out the right size in the right style on

demand. Often a wholesaler will be unwilling to ship out individual shoes,

but Premier Store was able to secure an exclusive arrangement with its wholesaler

to meet this need.

4.0 Market Analysis Summary

Premier Store will be targeting two distinct groups of fashion-concious male

shoppers--professional workers and housewives. While both groups are interested

in dress shoes, the professionals will also be looking for fashionable shoes they are

able to wear with their business attire. The housewives might be looking for

fashionable but more casual shoes.

4.1 Market Segmentation

Premier Store is targeting two different population segments within the broad

category of the fashion-conscious male with disposable income.

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Demographic: Age: 25-40… Marital Status: Single/Married… Gender: Male…

Income: High Income… Occupation: Wife/Stay at home Mom/Business Man…

Education: College/University… Ethnicity: All… Nationality: Nigerian/Foreigner

 Professionals: these are full-time working professional men. They typically

earn more than #120,000. They will purchase shoes for the workplace, as well

as for leisure time.

 Housewives:  The household income of this group is #50k-#120k, generally

toward the higher end of this range.

4.2 Target Market Segment Strategy

These markets will be targeted through an attractive, eye-catching storefront in a

popular mall. Most men within the target market shop at malls. Malls allow them

to visit many different stores within the same vicinity. By just having a visible

storefront in a well traveled mall, Premier Store will receive walk-through

customers.

While the leased space in a mall is expensive, one of the benefits that you pay for

is the mall association which spends money on marketing the mall and the stores

within the mall.

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4.3 Industry Analysis

Men's shoe retail industry is made up of several different types of companies:

 Shoe-only stores: As the name implies, these stores only sell shoes. Generally

the shoe-only stores will either sell athletic shoes for men and men, or dress

shoes for only one sex.

 Large department stores: these types of stores sell everything, including

shoes.

 Small men's retail stores: these types of stores cater to men by only selling

men's clothing and shoes. 

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4.3.1 Competition and Buying Patterns

Premier Store has three direct competitors in Ajah, Lagos:

 Big H Shoes: This is a men's only clothing and shoe store. They have a nice

selection of clothing but a poor selection of shoes. The shoe styles are not

cutting edge. The price point for the shoes is #30 - #60k.

 Kaybell Nig. Ltd: This is a large, complete, department store. The store

however, suffers from cluttered displays and a general sense of

disorganization. Shoes here are #20 - #70k

 Pedisbox Shoes: This is a national franchise that only sells shoes, for both

men and men. This company will sell knock-offs, shoes just like name brands,

but with their name on it.  While this store has a huge selection, the quality of

the shoes leaves a lot to be desired. This is somewhat understandable as the

shoes typically sell for #15 - #50k. While the shoes are often good copies of

famous brands, the execution is sometimes off. Many of the shoes are made

out of pleather and look like they were dipped in wax, giving them a tacky

appearance.

An indirect competitor is a shoe smith that will dye shoes. The shoes are typically

dyed to match a specific dress. Not all colors can be dyed, and dying in general is

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not the ideal situation. Dying shoes creates a new shoe color that is acceptable only

20% of the time.

The two major competitors in Lagos Island are:

 Big H Shoes: mid- to high-end department store known for their outstanding

customer service. The shoe price point is #40 - #150k.

 Dims: this department store caters to the high class, older crowd. Shoes range

from #70 - #200k.

The buying habits for fashion-conscious men consist of typically buying at least

one pair of shoes per month. Men generally purchase a pair of shoes to go with a

specific dress. Once the man purchases the dress he will then begin the sometimes

long search for the perfect pair of shoes.

5.0 Strategy and Implementation Summary

Premier Store will leverage their competitive edge of extensive selection to drive

sales. This is indeed a competitive edge because it is typically cost prohibitive for a

store to have as much of a selection that Premier Store will offer. Because of a

unique business model, Premier Store is able to leverage their financial resources

and offer an unmatched selection. This is done by carrying a large selection of

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styles by only stocking one size per style. Once the customer has chosen the style,

Premier Store will have the customer's shoes in one to two days.

5.1 Sales Strategy

Premier Store' sales strategy will be based on display and visibility. A highly

visible store with attractive product displays located in the mall will get a high

percentage of foot traffic. This is especially the case for a men's shoe store. Men

love to shop for shoes. Some men even use shoe shopping as a form of therapy,

similar to eating chocolate. These activities can make them feel better.

The sales strategy will simply be, have the most complete selection of shoes.

Assuming the prices are reasonable, having an extensive selection will drive sales

because we believe our target markets of fashion-conscious males are always

looking for the perfect pair of shoes to coordinate with their fashion style.

SWOT Analysis

The following SWOT analysis captures the key strengths and weaknesses within

the company, and describes the opportunities and threats facing Premier Store.

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Strengths

 Extremely strong relationships with distributors.

 Excellent staff who are well trained and customer attentive.  They also get

great discounts, increasing job satisfaction.

 An efficient, stylish retail store.

 Unique; no shoe is the same.

Weaknesses

 The struggle to build brand equity.

 The inability to provide instant gratification by having all sizes in stock.

 Forecasting fashion is difficult but necessary to profitability.

Opportunities

 A growing segment of the market that is increasingly bothered by having to

travel to Seattle for nice shoes.

 An industry that seems immune to recessions.

 The ability to operate on lean overhead relative to competitors.

Threats

 Competitors in the area that are selling shoes.

 Completely misjudging where fashion is headed.

 Constant delays in the shipment of product or the unavailability of many of

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 the advertised designs.

5.1.1 Sales Forecast

The first month will be used to set up the store front. The first employee will be

hired and display inventory will be purchased. There will be no sales activity

during the first month. The second month will begin to see sales activity, and it is

forecasted that around month four sales will really begin to pick up. The reason for

this is that word will get out about Premier Store and more and more people will be

coming in to check out the extensive selection. A third employee will be hired in

December for the holiday season.

5.3 Competitive Edge

Premier Store' competitive edge is an unmatched selection in Ajah, Lagos. This

selection will be achieved in two ways. The first way is a very specific effort to

carry as many styles of shoes as possible. Premier Store recognizes that Ajah,

Lagos currently does not have a single store that offers a wide selection of decent

quality shoes for the fashion conscious male consumer. The competitive edge is the

recognition of this unserved niche and the serving of this demand.

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Premier Store will be able to offer a large selection through a unique inventory

model that stocks only one size per style. The advantage is that for the same

amount of money that Premier Store invests in overhead, they can offer far more

styles.

This model is effective because men are willing to order a pair of shoes sight seen

but not fitted. Premier Store offers two day delivery with an additional expense

rush overnight option.

5.3 Competitive Edge

Premier Store' competitive edge is an unmatched selection in Ajah, Lagos. This

selection will be achieved in two ways. The first way is a very specific effort to

carry as many styles of shoes as possible. Premier Store recognizes that Ajah,

Lagos currently does not have a single store that offers a wide selection of decent

quality shoes for the fashion conscious male consumer. The competitive edge is the

recognition of this unserved niche and the serving of this demand.

Premier Store will be able to offer a large selection through a unique inventory

model that stocks only one size per style. The advantage is that for the same

amount of money that Premier Store invests in overhead, they can offer far more

styles.

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This model is effective because men are willing to order a pair of shoes sight seen

but not fitted. Premier Store offers two day delivery with an additional expense

rush overnight option.

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6.1 Break-even Analysis

The Break-even Analysis indicates that approximately #300,000 is needed in

monthly revenue to reach the break-even point.

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