DECATHLON HANOI OUTLETSPORT FOR ALL – ALL FOR SPORT

173 XUAN THUY, CAU GIAY, HANOI

Content

1. Objectives2. Business Opportunity & Advantage3. Market Research4. Marketing Plan (4Ps)5. Operational Plan

1. Finance2. Supply Chain3. IT4. Human Organization

Content

ObjectivesWe sell what we produce. Why NOT?

warranted quality

branded

products

reasonable price

…to Hanoians

Business Opportunity

FTA, TPP7.2M Hanoians (2014)

4 seasons

Annual Income: 58M/year

Sport diversity Close to suppliers

Business Advantage

Decathlon Brand1

Price2

Various designs3

Quality4

Local for Local5

No fake products6

Market Research

Total (Au-tobase)

Basketball Badminton Soccer Swimming Tennis Table Tennis Athletics Golf Formula 1 Grand Prix Motorcar

Racing

Motor Bike Racing/

Speedway

Gymnastics Volley Ball Cycling Martial Arts Pool/9-Ball Pool

X-Treme Games

Boxing/Thai Boxing

0%

20%

40%

60%

80%

100%

120%

Vietnamese People Playing Sports

Total People P 18-35

Football

Table tennis

Badminton

Running, Walking

Tennis

Gym, Arobic, dance sport, yoga

Golf

Trekking, Hikking

Cycling

Swimming

15.70%

8.60%

17.10%

15.70%

7.10%

21.40%

0.00%

5.70%

8.60%

2.90%

Types of sport

Market Research

15%

10%

1%

1%

1%

0%

0%

71%

Marketshare in 2013

Nike Inc adidas Vietnam Co Ltd BasicNet SpA Kering SAVF Corp Skechers USA Inc Fila Holding SpA Others

Our target pie

Market Research

0% 5% 10% 15% 20% 25% 30%

10%

5.70%

28.60%

15.70%

2.90%

Where to buy

Other Online Private retail store Other stores like HoangPhuc, Maxxsport, Sport1, Supersport Sport store like Nike, Adidas, Puma, Lining ……

Market Research

<5M 5M - 15 M 15M - 30M <300%

20%

40%

60%

80%

100%

38%49%

70%

100%

62%51%

30%

0%

paly sport every week I hardly play sport

Market Research

Manufacturers- Nike, AdidasStrength Weakness Threat

- Quality- Trademark: Nike 1964, Adidas 1949- Marketing: Adidas € 947 million.- Distributions: 19 Adidas stores

- High price- Little discount - Negative feedback on technical knowledge of salers

- Fake products- Enter of other brands

Distributors – Maxx Sport, Sport1, SupersportStrengths Weakness

- Well-known brands (Lining, Adidas, Lotto…)- Varies in sport types- Large store surface

- Customer mentality about non-authentic products- Full warrant policy

Market Research - Competitors

Marketing plan - PlaceLocation: main road, easy access, near sport facility, or in shopping mall, not far from office.Surface area: 300- 500 m2

Price: 25-30 $/m2/month on the road. 30-40 $ on shopping mall.No of floor

Unit surfaceTotal surface

(m2)Total rent fee

(in $)Unit rent fee

($/m2)

Thái Hà 2 350 700 20,524 29

Láng 3 600 1,800 8,571 5

Duy Tân 1 612 612   Checking

Checking

173 Xuân Thủy, Cầu Giấy 1 500 500   Checking

Checking

Hoàng Đạo Thúy 1 424 1000 11,731 18

Product Price (kVND) Reference

Short 50-200 Artengo short:

Light jackets 250-500 Quechua+ Artengo jacket

Jackets 400-1000 Wedze jackets

Shoes 200-1000 Kalenji, Domyos

T-shirt 50-200  Domyos T-Shirts

Gloves 100 - 200 Kalenji, Quechua

Equipment

100-200 (ball)50-150 (backpack)600-1000 (tent)

Marketing Plan - Product & Price

Marketing Plan - Promotion

Operational Plan - FinanceYear 2016 2017 2018 2019

TO 800,000 1,200,000 1,500,000 1,500,000 COST investment 297,700 255,000 255,000 255,000 COST production 600,000 900,000 1,125,000 1,125,000Gross Profit -97,700 45,000 120,000 120,000Other Expenses 25,000 25,000 25,000 25,000

Net Profit -122,700 20,000 95,000 95,000

Operational Plan - SupplySELECTION

ORDER

SHIPMENT

RECEPTION

PICKING

SALESOUTLET DPP FG SUPPLIER PORT OF LOADING

HAI PHONGWAREHOUSEOUTLETCUSTOMER

OUTLET Local supplier WAREHOUSE OUTLET CUSTOMERLOCAL SUPPLIER

Operational Plan - Supply

Operational Plan - IT

Store manager

Purchase Purchaser

Sales

Security

E-commerce

Sales assistants (x3)

Cash register (x2)

Security guard

Operational Plan - Human