ryan bodensteiner. executive summary ryans sporting goods will do the following to succeed:...

Ryan Bodensteiner

Executive Summary

• Ryan’s Sporting Goods will do the following to succeed:– Provide athletic apparel, equipment, and merchandise

– Locate at 6th and Wakarusa

• An untapped area

– Appeal to active adults and youths (12-40 year olds)

– Implement a three pronged marketing strategy

• Advertising, location, and word-of-mouth

– Rely on a sound financial plan that will quickly enable the store to make a profit

Mission Statement

Ryan’s Sporting Goods will provide affordable apparel, quality merchandise, and useful athletic equipment to the citizens of Lawrence and Douglas County. We will accomplish this goal with competitive prices in a fair, professional manner.

Business Environment

• Lawrence economy has been growing for the past eleven years

• Over 80,000 residents in Lawrence

• Only three local competitors– None provide a comprehensive supply of

equipment

Business Environment Cont.

• 20-24 year old age group is the largest demographic in Lawrence (19.3%)– Typically active group that enjoys athletics

• Store appeals to this demographic as well as teenagers and athletic adults

• Target Market will be 12-40 year olds

• Location will be near 6th and Wakarusa

• Growing area of Lawrence

• Substantial drive-by traffic at this location

Management Team• Five employees including myself

– Two part-time salespeople, one other part-time employee, and a full-time assistant manager

• The part-time employees will need the following:– Good social skills

– Knowledgeable about sports

– Experience or education

– Ambition

Management Team Cont.

• The assistant manager and I will need the following:– Social skills– Education or experience– Financial knowledge– Sports knowledge– Organizational abilities– Promotional talent– Intelligence

Financial Data

• $36,500.00 start-up money– I will invest $18,000.00; thus, I need an

$18,500.00 loan

• $500,000.00 in sales the first year• Net profit ranging from $25,000.00 in the

first year to nearly $26,000.00 in year three

• Break-even point will be $730,000.00 in sales

Marketing Plan

• Three pronged marketing strategy– Business location including one lighted sign – Positive word-of-mouth– Local media advertising including flyers and

television• $6,000.00 marketing budget• Store appeals to the active, athletic Lawrence

residents

Marketing Plan Cont.• Products include apparel ($10.00-$25.00),

equipment ($20.00-$50.00), and merchandise (under $5.00)

• 2.2% sales increase in the second year and a 1.3% increase for the third year

Conclusion• Small risks are involved in the business

proposition– Possible recurrence of the recession– Three sporting goods stores are enough– Management team availability– Fluctuating expenses– Risky marketing plan

• All of these are easily refuted and are minute compared to the apparent advantages

Conclusion Cont.

• Ryan’s Sporting Goods has a sound strategy that ensures success– An untapped location– A safe, effective marketing strategy– An efficient management team– A reliable financial plan

• The result is surely a successful, profitable business that will be a staple in Lawrence and Douglas County