Presentation Transcript

1. Bella Flats “Convenience has never been so beautiful” Amos Ng Linda Lee Michelle Chin Rebecca Carchidi To the Bank of Mom&Dad
2. Bella Flats Bella Flats Competitive Analysis Market Strategy and Analysis Operations and Management Financials Risk Mitigation Conclusion What we want: $14,944 What for? terms of schooling for the price of 1! But most importantly, EXPERIENCE!
3. Bella Flats Bella Flats Competitive Analysis Market Strategy and Analysis Operations and Management Financials Risk Mitigation Conclusion
4. Bella Flats Bella Flats Competitive Analysis Market Strategy and Analysis Operations and Management Financials Risk Mitigation Conclusion
5. Competitive Analysis Industry Rising trend of increasing spending on footwear by consumers from 2004 to 2009 (Market Research Institute GMID) Bella Flats Competitive Analysis Market Strategy and Analysis Operations and Management Financials Risk Mitigation Conclusion
6. Competitive Analysis Industry Edmonton – most affluent Canadian province per capita Large, increasing labour force 81, 470 females in Sales in Services (StatsCan, 2006) Bella Flats Competitive Analysis Market Strategy and Analysis Operations and Management Financials Risk Mitigation Conclusion
7. Competitive Analysis Bella Flats Competitive Analysis Market Strategy and Analysis Operations and Management Financials Risk Mitigation Conclusion
8. Competitive Analysis Bella Flats Competitive Analysis Market Strategy and Analysis Operations and Management Financials Risk Mitigation Conclusion Damn Heels Canadian company Foldable flats in small compact cube Only available in 3 colors Does not include clutch $20 (not including shipping) Only 2 locations in Edmonton
9. Competitive Analysis Bella Flats Competitive Analysis Market Strategy and Analysis Operations and Management Financials Risk Mitigation Conclusion Dr. Scholl’s Fast Flats Only comes in black Available only in few local drugstores Includes a small gold clutch Does not include anywhere to carry high heels
10. Competitive Analysis Bella Flats Competitive Analysis Market Strategy and Analysis Operations and Management Financials Risk Mitigation Conclusion Bella Flats’ Competitive Edge Offering more colors Easy access for customers Reasonable price Packaged in a trendy clutch Includes foldable bag Impulse buy Modern and trendy styles and colors
11. Market Strategy & Analysis Market Segment Females in Edmonton Alberta Bella Flats Competitive Analysis Market Strategy and Analysis Operations and Management Financials Risk Mitigation Conclusion Female Population Year Stats Can, 2006
12. Market Strategy & Analysis Bella Flats Competitive Analysis Market Strategy and Analysis Operations and Management Financials Risk Mitigation Conclusion Target Market Edmonton Alberta Females Ages 15-39
13. Market Strategy & Analysis Bella Flats Competitive Analysis Market Strategy and Analysis Operations and Management Financials Risk Mitigation Conclusion
14. Market Strategy & Analysis Bella Flats Competitive Analysis Market Strategy and Analysis Operations and Management Financials Risk Mitigation Conclusion Target Market #1 - Students 15-24 years old, 15% of market segment High school, university/college, newly entering the labour force Fashionable and trendy Includes 18 year olds who are more likely to frequent clubs and bars Higher portion of disposable income
15. Market Strategy & Analysis Bella Flats Competitive Analysis Market Strategy and Analysis Operations and Management Financials Risk Mitigation Conclusion Target Market #2 - Workers 25-39 years old, 21.3% of market segment Already part of labour force Professional, yet convenient More frequently attend special events Large disposable income
16. Market Strategy & Analysis Bella Flats Competitive Analysis Market Strategy and Analysis Operations and Management Financials Risk Mitigation Conclusion Survey Surveyed 100 females living in Edmonton, Alberta Approx. 60 females between ages 15-24 Approx. 40 females between ages 25-39
17. Market Strategy & Analysis Survey Bella Flats Competitive Analysis Market Strategy and Analysis Operations and Management Financials Risk Mitigation Conclusion 99% wear high heels on special occasions and events (i.e. Clubs, bars, weddings) 100% experienced pain from wearing heels SurveyMonkey.com
18. Market Strategy & Analysis Bella Flats Competitive Analysis Market Strategy and Analysis Operations and Management Financials Risk Mitigation Conclusion Marketing Strategy Free for consumer access: Facebook & Twitter Promotional Posters Website Metro, 24 hours SEE magazine SurveyMonkey.com
19. Operations & Management Geographical Location Retail Kiosk: Edmonton, Alberta Young, Affluent workforce Supplier Supplier: Shenzhen, Guangdong (China) Cheap manufactured products, International Port “Shenzhen Free Trade Zone” tax relief Bella Flats Competitive Analysis Market Strategy and Analysis Operations and Management Financials Risk Mitigation Conclusion
20. Operations & Management Bella Flats Competitive Analysis Market Strategy and Analysis Operations and Management Financials Risk Mitigation Conclusion Operating Cycle Spring/Summer fashion trend Year 1&2: May – August (4mths) Subsequent Years: March – October (8mths) Website Orders, all year round
21. Operations & Management Facilities and Improvements Kiosk at WEM Spring/Summer (May, Jun, Jul, Aug) Expansion to Southgate in Year 4 Storage Inventory stored privately Bi-weekly inventory count Bella Flats Competitive Analysis Market Strategy and Analysis Operations and Management Financials Risk Mitigation Conclusion
22. Operations & Management Facilities and Regulations “General Business” licence required ($194 /year) “General liability insurance” ($1,000/year) Day to day Operations Opening shift: Open kiosk, check stock Closing shift: Balance payments and stock Website Orders – Daily fulfilment FREE delivery within Edmonton Bella Flats Competitive Analysis Market Strategy and Analysis Operations and Management Financials Risk Mitigation Conclusion
23. Operations & Management Bella Flats Competitive Analysis Market Strategy and Analysis Operations and Management Financials Risk Mitigation Conclusion Compensation and Ownership Partnership of four, Equal Ownership and Profits
24. Financials Bella Flats Competitive Analysis Market Strategy and Analysis Operations and Management Financials Risk Mitigation Conclusion
25. Financials Start-up costs $14,944 to cover first month, or $3,736/family Profit after summer $24,704 total profit $6,176 per family Second year $31,927 total profit $7,982 per family Bella Flats Competitive Analysis Market Strategy and Analysis Operations and Management Financials Risk Mitigation Conclusion
26. Financials Bella Flats Competitive Analysis Market Strategy and Analysis Operations and Management Financials Risk Mitigation Conclusion
27. Financials Bella Flats Competitive Analysis Market Strategy and Analysis Operations and Management Financials Risk Mitigation Conclusion Year 3: Making $41, 395.46 total Year 4: Expansion to Southgate Total costs = $193, 343.11
28. Financials Bella Flats Competitive Analysis Market Strategy and Analysis Operations and Management Financials Risk Mitigation Conclusion
29. Financials Bella Flats Competitive Analysis Market Strategy and Analysis Operations and Management Financials Risk Mitigation Conclusion Year 3: $22, 280/family for costs of $89,121.12 Making $47, 375.81 total Year 4: Expansion to Southgate Total costs = $173,190.51
30. Financials Bella Flats Competitive Analysis Market Strategy and Analysis Operations and Management Financials Risk Mitigation Conclusion
31. Financials Bella Flats Competitive Analysis Market Strategy and Analysis Operations and Management Financials Risk Mitigation Conclusion
32. Risk Mitigation Possible Major Problems Delays in Delivery (Guangdong, China) Quality and Reliability Lack of confidence, leasing Kiosk to an “untested product” Insufficient Monthly Sales (need to cover overheads) Demand may decline during Winter Bella Flats Competitive Analysis Market Strategy and Analysis Operations and Management Financials Risk Mitigation Conclusion
33. Risk Mitigation Plans to Minimize Risks Promotions, advertising (University, clubs) Posters & flyers to increase awareness and sales Reserve stock stored in Edmonton Order additional stock when inventory drops below 20% Bella Flats Competitive Analysis Market Strategy and Analysis Operations and Management Financials Risk Mitigation Conclusion
34. Conclusion Bella Flats Competitive Analysis Market Strategy and Analysis Operations and Management Financials Risk Mitigation Conclusion Experience Experience … … Experience!
35. Questions & Answers Amos Ng Linda Lee Michelle Chin Rebecca Carchidi
36. Appendices - Main Marketing Competitor Information Operations Financials
37. Appendices - Marketing Website Poster Advertisement Shoe Size Chart
38. Appendices – Competitors Damn Heels Dr. Scholl’s Fast Flats
39. Appendices - Operations Tentative Work Schedule Other Suppliers
40. Appendices - Financials Costs Breakeven Year 2 Objective Sales
41. Appendices - Costs Revenue, Costs & Profits Start-up Costs Unit Costs Variable Costs WEM & Web Fixed Costs Southgate Fixed Costs
42. Appendices - Breakeven Breakeven Point Breakeven Chart
43. Appendices - Website
44. Appendices – Poster Ad
45. Appendices – Shoe Size Shoe Size Survey Results Bella Flats Size Chart Small (5&6) Medium (7&8) Shoe Size
46. Appendices – Damn Heels MUD Studio12403 Stoneplain Rd,EDMONTON, AB708 482 2004www.mudstudio.com Michele's Centre Cafe9797 Jasper Ave,EDMONTON, AB
47. Appendices – Fast Flats Shoppers Drug Mart London Drugs http://www.drscholls.ca
48. Appendices – Work Schedule Location: West Edmonton Mall (Kiosk)
49. Appendices – Other Suppliers
50. Appendices Revenue, Costs and Profits
51. Appendices – Start-up Costs
52. Appendices – Unit Costs
53. Appendices Variable Costs
54. Appendices – Monthly WEM and Website Fixed Costs
55. Appendices Southgate Fixed Costs Note: $355 is added to the first year of operating in Southgate Mall to cover equipment costs
56. Appendices Breakeven Point
57. Appendices Breakeven Chart
58. Appendices – Year 2
59. Appendices – Objective Sales