BUSINESS REPORT

GRIPO SHOES

TABLE OF CONTENTS:

1) Executive Summary

2) Keys to Success

3) Objectives

4) Mission

5) Start-up Summary

6) Products

7) Market Analysis Summary

8) Target Market Segment Strategy

9) Competition and Buying Patterns

10) SWOT analysis

11) Sales Strategy

12) Personnel Plan

13) Financial Plan

Executive Summary
Gripo Shoes has been chosen as the product of this project. In our decision of choosing Gripo Shoes,
its being the world’s leading innovator in athletic footwear had the most important impact. Gripo
Inc.’s confident mission desires to bring inspiration and innovation to every athlete* in the world; by
the means of athlete* it accepts everybody who has a body. Gripo’s this self-confident mission and
innovative vision has already made us inspired and wishes to become a part of it. Among this project
we have studied on how we segment the market, and which ones our target markets are; what our
strategy, positioning strategy are; what consumer behaviors we observe; Gripo Shoes’ product, price,
place and promotion analysis, PEST analysis, TOWS analysis, advertisement analysis; market
information and consumer research; and the new strategy recommendations.

KEY TO SUCCESS
The key to success is to meet the demand for shoe store with a wide selection and focused customer
attention.

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 20% 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.

Mission
Gripo shoes mission is to provide Eugene with an upscale selection of 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.

Start-up Summary
Gripo shoes will incur the following start-up costs:

 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.

START-UP FUNDING

Start-up Expenses to Fund $600

Start-up Assets to Fund $29,400

TOTAL FUNDING REQUIRED $30,000

Assets

Non-cash Assets from Start-up $14,368

Cash Requirements from Start-up $20,032

Additional Cash Raised $0

Cash Balance on Starting Date $20,032

TOTAL ASSETS $34,400

Liabilities and Capital

Liabilities
Current Borrowing $0

Long-term Liabilities $0

Accounts Payable (Outstanding Bills) $0

Other Current Liabilities (interest-free) $0

TOTAL LIABILITIES $0

Capital

Planned Investment

Holly $30,000

Other $0

Additional Investment Requirement $0

TOTAL PLANNED INVESTMENT $30,000

Loss at Start-up (Start-up Expenses) ($600)

TOTAL CAPITAL $29,400

TOTAL CAPITAL AND LIABILITIES $29,400

Total Funding $30,000

START-UP

Requirements

Start-up Expenses

Legal $500

Stationery etc. $100

Other $0

TOTAL START-UP EXPENSES $600

Start-up Assets

Cash Required $20,032

Other Current Assets $0

Long-term Assets $9,368

TOTAL ASSETS $29,400

Total Requirements $30,000

Products
Gripo shoes will sell rough and tough shoes. The general categories of shoes that will be sold are:

 Sandals

 Stylish work shoes

 Loafers

 Dress shoes

 Canvas athletic/stylish shoes

Gripo shoes will strive to have one of the largest selections of shoes in Oregon, barring the larger stores
in Karachi. Gripo shoes will accomplish this by having one size per style in stock as a demonstration
model. Gripo shoes will then order the style in the needed size and it will arrive within two days (rush
one 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 Gripo shoes were able to secure an exclusive arrangement
with its wholesaler to meet this need.

Market Analysis Summary

Gripo shoes will be targeting two distinct groups of fashion-conscious shoppers--professional
workers. 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.

Market Segmentation

Gripo shoes is targeting two different population segments within the broad category of the fashion-
conscious female with disposable income.

 Professionals: these are full-time working professional women. They typically earn more than
$45,000. They will purchase shoes for the workplace, as well as for leisure time.
  Housewives: The household income of this group is $60k-$120k, generally toward the higher
end of this range.

MARKET ANALYSIS

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

Potential Customers Growth CAGR

Professionals 9% 12,457 13,578 14,800 16,132 17,584 9.00%

Housewives 8% 14,544 15,708 16,965 18,322 19,788 8.00%

Other 0% 0 0 0 0 0 0.00%

Total 8.47% 27,001 29,286 31,765 34,454 37,372 8.47%

Target Market Segment Strategy

These markets will be targeted through an attractive, eye-catching storefront in a popular mall. Most
women 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, Gripo 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.

Industry Analysis

Women'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 women, or dress shoes for only one sex.

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

 Small women's retail stores: these types of stores cater to women by only selling women's
clothing and shoes.

Competitors
Below are the top 12 main competitors:

1. Nike

2. Reebok

3. New Balance

4. Converse

5. Puma

6. Fila

7. Bata

8. Liberty Shoes

9. Under Armour

10. Umbro

11. Woodland

12. Asics

SWOT ANALYSIS

The Strengths,
Weaknesses,
Opportunities &
Threats (SWOT)
Analysis of Gripo.
Strengths are:

Gripo has a very

diversified product
portfolio ranging
from sports shoes,
equipment’s to
clothing and
accessories.

A workforce of over
45,000 employees

Excellent advertising
of GRIPO products
through TVCs, online
ads, print media,
hoardings etc.

8. The brand is
associated with
several sport stars as
their brand
ambassadors

Here are the weaknesses in the Gripo SWOT Analysis:

Weaknesses 1. The products by Gripo can sometimes be costly due to innovative technology or production method

2. Stiff competition and similar big brands means customers have high brand switching

Following are the Opportunities in Gripo SWOT Analysis:

Opportunities 1. To keep up with the competition, Gripo generates close to 60 new foot-friendly designs each year.

2.The company can venture into making more stylish designs and cuts
 3. Tie-up with emerging sports teams/clubs/players internationally can boost Gripo's brand presence

4. Brand building by setting up sponsored sports academies

5. Gripo should focus on budget range designed especially for college students, young professionals

The threats in the SWOT Analysis of Gripo are as mentioned:

1. Other brands offering more styles and varieties, thus more competition

Threats 2. Threat from other competitive brand who produce sports equipment and accessories at a lesser cost

3. Pirated/fake imitations affect brand image of Gripo

4. Local brands in individual countries lead to more competition to Gripo

SALES STRATEGY
Gripo s' 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
women's shoe store. Women love to shop for shoes. Some women 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 females are always looking for the perfect pair of shoes to coordinate with their
fashion style.

Personnel Plan
Ahmed will be working full time at Gripo shoes. She will be in charge of all administrative details, hiring,
inventory management, etc. Beginning with month two, Ahmed will hire a full-time sales clerk to help
her at the store. By December, He will hire an additional full-time employee in time for the holiday
season.
PERSONNEL PLAN

YEAR 1 YEAR 2 YEAR 3

Ahmed $36,000 $40,000 $42,000

Full-time employee $17,600 $19,200 $19,200

Full-time employee $1,600 $19,200 $19,200

TOTAL PEOPLE 3 3 3

Total Payroll $55,200 $78,400 $80,400

Financial Plan
The following sections will outline important financial information.

7.1 Important Assumptions

The following table details important financial assumptions.

GENERAL ASSUMPTIONS

YEAR 1 YEAR 2 YEAR 3

Plan Month 1 2 3
Current Interest Rate 10.00% 10.00% 10.00%

Long-term Interest Rate 10.00% 10.00% 10.00%

Tax Rate 30.00% 30.00% 30.00%

Other 0 0 0

GRAND OPENING:

We will do the grand opening of our Gripo shoes in mall and give the discount on first day.

ONLINE ADVERTISING:

Online advertising is one of the easiest and cheapest way too aware your customers. We will do our
online advertising by Facebook, Instagram, and Twitter etc.