bponce ec store project

The Jersey Spot Bussines Plan

Business Plan

The Jersey Spot

Balam Enrique Ponce Tequida

The Jersey Spot

Del Canal 5120-2

La Escondida

Tijuana, BC 22106

664-60-89-008

664-3747-209

[email protected]


I. Table of Contents

I. Table of Contents....................................................................................2

II. Executive Summary................................................................................3

II. General Company Description................................................................4

IV. Products and Services.............................................................................6

V. Marketing Plan........................................................................................7

VI. Operational Plan...................................................................................11

VII. Startup Expenses and Capitalization....................................................13

VIII. Appendices............................................................................................24


II. Executive Summary

This store is called the Jersey Sport, it is dedicated to selling soccer jerseys

from all the national teams and the most popular soccer clubs in the world,

but we have a policy that if we do not have the jersey you want we will get it

for you.

Our market is only in Mexico and the US because we want to start testing how

the business runs in these countries and if its goes right we will take the risk

to grow bigger and sell also in Europe where a bigger market exists due to the

popularity of soccer in those countries.

The store it is only going to sell online maybe at first, it will be reconsidered if

there is a need for a physical store later.

We want to start the business with a loan of $100,000 to make the dream real

of running the business. This money will be spent in a great marketing

campaign and in setting up our facilities and the website and all the related

matter for security and hosting of the website.


III. General Company Description

The Jersey Spot is a store specialized in selling soccer jerseys, from both

national teams and soccer clubs from different teams all over the world.

Mission

We want to create a place where fans can purchase their favorite jerseys

easily, rapidly and with the lowest prices in the market.

Vision

We want that people get to know us, and whenever they need to buy a soccer

jersey, they think in us first of all in order to acquire their jersey.

Goals and objectives

Our main goal is to become an icon in the soccer jerseys retailing industry,

and how do we plan to accomplish this?

Maintain a certain level of sales

Always have the latest products in the market

Achieving full satisfaction of our costumers

Business Philosophy

In The Jersey Spot we are here to serve our customers because they are our

main concern. Costumers’ total satisfaction is our pleasure.

It is our knowledge that soccer is the world’s most popular sport with millions

of fans in many places this is why there are no limits from who are we

targeted, anyone can be a costumer of us.

Soccer apparel industry

This industry goes from t-shirts to rain coats but the article that is the most

sold all over the world are the jerseys. Soccer fans love to wear the same skin

that their team is wearing at that season and thanks to the globalized world

we live now, it is a growing tendency for people to cheer for teams from other

countries besides theirs.


The soccer jerseys industry has some moments when the sales increase

notoriously:

Every new season, which is once or twice a year depending the soccer league

Every time a new cup stars, this could be several times depending the country

but in general there are 5 great cups worldwide that make jerseys a hot item

at that moment.

We have Eurocup, Libertadores tournament, Champions League, Soccer clubs

World Cup and the World Cup. These events are celebrated every year and

others every fourth year like the Olympics.

But the great opportunity that selling soccer jerseys has is that sales are made

the whole year and it is an industry that is growing due the increasing

popularity of soccer in countries like the U.S. that in previous years the fans

were more inclined by other sports like baseball, football or basketball.


IV. Products and services

The products that are going to be sold in the jersey store are authentic

replicas from the jerseys that professional player would wear on a game.

Every jersey has its own unique characteristics, in the website each jerseys

when we click on it, it displays a brief description of the jerseys, and at the

bottom comes a list of what does the jersey has attached to it, what material is

made of and other special information of the it. (There is an example of the

screen that displays with the information of each jersey after clicking on it,

consult Appendix I)

Normally soccer jerseys manage a standardized price regarding where they

are being sold, we are sure that if we reduce the sale prices of the products

sold, we can gain the attention of the market due to the high prices that flow

in the market.

One services that we think that our clients would be grateful of is that we are

going to offer the chance to customize your jersey with your name and a

number for free, normally this service is charged up to $20 dollars extra of the

price of the jersey.

All of our jerseys are priced at the low price of 80 dollars which is about $10

to $20 dollars less than the price than can be generally seen in the market.

We manage a standardized price for our jerseys in order for costumers to

already know how much our products costs, another great feature that our

clients will see is that at the end of every season or cup when the jersey that

that the team is using is replaced by a new one, the old one would be put in

sale with great discounts that will me mentioned via our newsletter, social

media and in the home screen for everyone to know about the special sale.


V. Marketing Plan

Soccer jerseys are part of a multi-billion industry, as being part of the most

popular sport in the world, there is no concern in thinking what if my products

does not sell good, because soccer jerseys sell by itself and more if they are

customized of a very popular team or player at the moment.

As the charts in Appendix II show, the average sales from 5 different seasons

from the world’s best jersey selling teams, the numbers of the revenues is too

high, we are talking of almost 8 billion dollars of sales in just jerseys from 8

different teams, there are statics from the whole sale of every major team in

the world but if we think about it would be an enormous amount of money.

As a business man I have identified that here in the region exists a major

problem in satisfying the demand of soccer jerseys every new season, it is

easier to get a cheap replica and it is not because of the price, the main

reason is because there are no original jerseys in the stores to satisfy the

demand.

Due to the nature of our store it is going to be easier to help with this problem

because, as a website people will not have to make lines to get their jersey,

they just have to order it from us and wait ot the jersey to arrive and we can

arrange deals to get the merchandise the same day it releases in the market in

order for clients to pre order it.

In Mexico a few year ago the sales online where not that popular but since

shipping companies like FedEx or UPS arrived at the country. As Statista

portal mentions on their website (Appendix III) online sales have grown for 6

billion dollars in 2012 to 12 billion dollars in sales in 2014, that the double of

sales in just two years.

Price

Jerseys are priced regularly for retailers about the half I of its selling price,

our suppliers will sell us the jerseys between $35 and $45 dollars per jersey,

in order to make profit we are going to sell them at the standard price of $80

dollars per jerseys to differentiate from the competence prices which fluctuate

between $90 and $100 dollars per jerseys.


Place

We do not have a physical store at the moment; we are going to specialize in

selling online for the moment only the U.S and Mexico. Our offices and

warehouse are localized in the city of Tijuana and a second warehouse in San

Diego, CA; this is for handling more easily the different orders among both

countries. There exists the plan of expanding to other countries specially in

South America and Europe where the market is pretty big, but due to

economic issues this could wait until we are better positioned in the market.

Promotion

Because we are a website we think that the best way to promote us is by using

the power of social media, we can find in Facebook a great tool to promote

ourselves and get people to know us, other thing that we are going to do is to

give flyers outside stadiums and soccer matches because the people in those

events are the main market we want to target.

Product

The jerseys being sold by us are directly shipped from the manufacturer, we

do no fabric any jerseys, the only thing that we do is that we provide the

services of customizing the jerseys. Jerseys are from worldwide known brands

as Nike, Adidas, Under Armor and Puma among others.

We will offer from size S to XL for men, at first we are only going to sell

jerseys for man, but we expect that by the end of the first year of business we

will introduce also jerseys for women and late in the next year jerseys for kids.

Each brand offer different quality and specifications, but we as a store offer

the warranty that if the buyer does not like the quality of the jersey we will

refund the value of it.

Target Market

At this moment our main market are men from 15 to 50 year which are the

most possible one that would be able to buy a jersey, but in general anyone

who is a soccer fan or want to buy a gift for someone would be perfect for us,

the most obvious market would be anyone with a credit card because there

are going to be able to buy from us due to the need of one in order to order

online.


We expect that in a year our market could be also target not only for men but

also for those women who we know love soccer as much as we do.

Competition

In the soccer apparel industry there is a lot of competence, for example every

brand has its unique stores where they sell only products of their brand. In

other hand there are retail store where they sell goods from all kinds of sports

including soccer jerseys. Also every teams has a store from where their

merchandise is sold, normally these stores are in their respective stadiums.

After visiting a several sites, I determined that there are two main competitors

that the store could have, one is from Mexico and the other from the US.

In Mexico we have Innova Sport which a sport goods retailer with physical

stores all over the country, with the achievement of having the biggest store

in the Latin America, they does not only have physical stores, they also sell

their goods online at http://www.innovasport.com/

In the US I determined that the biggest competitor is World Soccer Shop. This

store operating from Birmingham, Alabama has grown with all the alliances made with some of the world

greatest soccer clubs, with warehouses and presence all over the globe.

I made this comparison chart in order to make more clear the differences

between me and my competence.

Table 1: Competitive Analysis

FACTOR Me Strength WeaknessWorld Soccer Shop

Innova Spor

Importance to

Customer

PriceAll jerseys

are $80 dollars

Lower price than

competence

Less profit per sale for

me

In a range of $90 to

$100 dollars

In a range of $80 to

$100 dollars

2

Quality100%

guaranteed quality

Products ship

directly from the fabricant

-100%

guaranteed quality

100% guaranteed

quality1

Selection

If we do not have it, we will get it

for the costumer

Great policies

regarding the

inventory

Our policies may be

hard for us to maintain

Its big but, not that much

Little selection

1

http://www.innovasport.com/


FACTOR Me Strength WeaknessWorld Soccer Shop

Innova Spor

Importance to

Customer

Reliability

We will offer many warranties so clients

trust in us.

We will have be benefit of the doubt for new clients

We are new, so it is hard create trust in the

market

People already

know them

If something goes wrong

there a physical

store to go to solve

problems

1

LocationOnly in the

US and Mexico

Ability to focus in a

littler market

Little reach in the

market

Worldwide presence

Only in Mexico

4

Sales Method

Credit card and PayPal

The same as our

competence

Need of a credit cart

Credit card and PayPal

Credit card and cash

3

Word Soccer Shop represents a high level of competence for us due to their

15 years old experience and the reach that they have, the things that help us

battle with them is that the products they sell, are different depending where

are you buying.

Innova Sport, does not seems to be that hard beat, they do not have that great

support in every store so is in those stores where we can try to be better than

them to, due to the national presence just in Mexico we do not have to care for

them in the US market.

Niche

The Jersey Spot focuses in selling soccer jerseys to those fans that want to

look the way they teams do, our niche targets the sporting goods industry and

its fans specifically the soccer fans, in the countries of Mexico and the United

States

Promotion Strategy

We want to attack directly our market by sending people to give out flyers

with information and maybe some discounts in our website outside the main

venues or stadiums were soccer matches are being held, because that is

where all of our possible buyers will be possibly. we will need to be present in

universities and colleges were the young people of our generation are present

and maybe gain their attention with free stuff and music.


Social marketing via social networks will be also very important for us, so this

is why we will hire an agency in each country in order for them to find the

best way to attack the market.

Promotional budget

Our key for success will be to enter with a good selling spree in the market, is

they know us at the beginning they will stay with us surely, so this is why we

need to invest a lot of money in this area until we are already in mouth of

everyone and they will promote us socially.

The idea is to spend among $10,000 to $15,000 dollars in publicity between

both countries; this money will be invested in covering the fees of the

agencies, in paying for trips to the stadiums and universities, printing flyers

and in the products that we are giving for free.

Distribution channels

We are an ec-store that will be selling our products online, we will only sell

through our website and deliver via email, or in case that the product is

bought in Tijuana or Los Angeles, we could arrange a personal delivery or the

buyer could pick up the merchandise at our warehouse. We will ship through

the mail or private delivering companies with an extra fee.

We could offer discounts to people that buy 10 or more jerseys as if it was a

retailer from us, but cases like this one could be discuss trough mail or phone

with the customer service department.

Sales forecast

In Mexico the soccer season starts every January and July, so this is we are

plan to star the year selling about a thousand jerseys per the first to months of

each tournament and then reduce the sale up to 200 jerseys per month. In the

US we expect something different, the season start in March and ends in

December, so our plan is to finish/start the year with great sales of jerseys

from the past season and then in the second semester of the year we expect to

start selling about a thousand jerseys for about the next 3 months and then

reduce the sales up to a hundred per month until the season ends.

We are not counting in the sales forecast the sales of European clubs, we

expect to sell about five hundred jerseys from clubs across the Atlantic Ocean


per month specially from club like Barcelona, Real Madrid and Manchester

United.


VI. Operational Plan

Production

We do not produce our jerseys, we just sell them, the only thing that we do in

our facilities is that if requested we customize them, for this we bought the

equipment to paste the names and numbers requested by the clients.

Location

For setting up our store we rented our main offices that are stablished in

Tijuana, Mexico, in our offices we also have our warehouse we we are going to

receive the jerseys, the space is not that big but it is perfect for us, because

we are just starting on this business, but we are planning to move if this we

become profitable.

Also there is going to be another warehouse in the city of Los Angeles to keep

there the jerseys that are going to be sold in the country.

We expect to spend about $5,000 dollars in setting our office and warehouses,

including material, rent and the initial hosting of the website.

Personnel

To start the business we will need to hire

1. Two customer service agents: they will help and answer all the doubts

or questions that clients have regarding our company or their products

via phone or email.

2. one warehouse manager: per warehouse (2): The man in charge of the

warehouse will be in charge of packing receiving and packing all the

new merchandise and the jerseys that are going to be delivered.

3. Jersey customizer: the task of this employee will be to make the custom

jerseys.

4. Two delivery guys: they will be the ones in charge of distributing the

jerseys to the post services or wherever the jerseys are going to be sent

to the buyer.

5. One secretary: she will keep the records of the expenses and incomes,

and help the administrator to with his schedule.


6. Web administrator: he will keep the store active, out of malware, and

updated.

7. Administrator: he is the head of the company, he will take the big

decisions

8. Social media manager: his task is to promote the company and interact

with the possible costumer online and in person.

It is a requirement of the company that each employe needs to have a

bachelor degree related in the area they work except for the delivery guys.

The employees will be paid with all the benefits that the law of each

country requires including social security and other bonuses.

Inventory

Our warehouses will have each one an inventory of 300 jerseys each one

valuated in $50 dollars each one, having a value of $30,000 dollars in

merchandise that if it is not sold it can be returnes to the supplier for a half

of the investment, loosing only the other half.

The inventory turnover will depend of which jerseys are we talking to, we

will set a table of which jerseys sold the most and we need to have more of

those ones and which ones does not sell that much to reduce the quantity

of them in our inventory.

Suppliers

Our main suppliers will be Nike and Adidas because we will only sell

jerseys with the best quality in the market. Nike with its HQ in Beaverton,

will ship us directly from their factory in China while Adidas with their

America offices in Carlsbad, CA will ship us from their factory in

Philippines, depending were are going to sell those jerseys we will receive

the merchandise in San Francisco, CA or in Ensenada, BC.

We are going 50/50 with each company, our payment policy is that we pay

the first half when we make the order and the other at the end of the

month. Depending on the season we can calculate an approximate amount

of how much are we going to order from them but we try to mediate our

orders between both companies having them to ship us about $12,500

dollars of merchandise and the rest will be divided among other companies

like Puma and Under Armor,


Credit Policies

The Jersey Spot will not make credit sale, all the sales must be completely

paid at the moment of the sale.


VII. Startup Expenses and Capitalization

To best way to startup a business like this would be get a loan from the bank

for the amount $100,000 dollar from the bank trying to get the lowest interest

rate, I would take the debt for ten year. Because there are no investors at the

moment just me, the business will be registered as a limited liability company

in order to prevent financial problems myself if something goes wrong with

the business.

I considered a loan this big because it would be easier to solve any problem

that comes up the first year, I want to start very low profile with the company

may be trying to run it only locally and in social media to see how the people

responds to it, if its works it would have the proofs for the bank to get the loan

and star to making store happen.


Appendix A


Appendix B


Appendix C


Bibliography

THE WORLD'S BEST SELLING CLUB FOOTBALL SHIRTS. (2012, October 9).

Retrieved March 29, 2015, from

http://www.soccerbible.com/performance/football-apparel/2012/10/the-world-

s-best-selling-club-football-shirts/

About us. (n.d.). Retrieved March 29, 2015, from

http://www.worldsoccershop.com/company.html

Innova Sport. (n.d.). Retrieved March 29, 2015, from


B2C e-commerce sales in Mexico from 2012 to 2017 (in billion U.S. dollars).

(n.d.). Retrieved March 29, 2015, from

http://www.statista.com/statistics/254558/b2c-e-commerce-sales-in-argentina/

All of the pictures displayed in the webpage are from the next links:

http://www.adidas.com/us/men-jerseys?sz=120&start=0

https://www.google.com.mx/search?

q=soccer+ads&rlz=1C1CAFA_enMX611MX611&espv=2&biw=1242&bih=57

7&source=lnms&tbm=isch&sa=X&ei=QvAYVZmkKtPtoAT6r4LIDA&ved=0CA

YQ_AUoAQ

https://www.google.com.mx/search?

q=soccer+ads&rlz=1C1CAFA_enMX611MX611&espv=2&biw=1242&bih=57

7&source=lnms&tbm=isch&sa=X&ei=QvAYVZmkKtPtoAT6r4LIDA&ved=0CA

YQ_AUoAQ#tbm=isch&q=+soccer+jersey+ads

https://www.google.com.mx/search?q=soccer+ads&rlz=1C1CAFA_enMX611MX611&espv=2&biw=1242&bih=577&source=lnms&tbm=isch&sa=X&ei=QvAYVZmkKtPtoAT6r4LIDA&ved=0CAYQ_AUoAQ#tbm=isch&q=+soccer+jersey+ads



https://www.google.com.mx/search?q=soccer+ads&rlz=1C1CAFA_enMX611MX611&espv=2&biw=1242&bih=577&source=lnms&tbm=isch&sa=X&ei=QvAYVZmkKtPtoAT6r4LIDA&ved=0CAYQ_AUoAQ



http://www.adidas.com/us/men-jerseys?sz=120&start=0

http://www.statista.com/statistics/254558/b2c-e-commerce-sales-in-argentina/


http://www.worldsoccershop.com/company.html

http://www.soccerbible.com/performance/football-apparel/2012/10/the-world-s-best-selling-club-football-shirts/

http://www.soccerbible.com/performance/football-apparel/2012/10/the-world-s-best-selling-club-football-shirts/

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