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Accessible website that is entertaining to surf. Like a trip to your favorite store where you always find
something new that you want.
Excellent vendor relationship that will facilitate quick shipment of orders.
Establish an effective strategy for advertising in the communities' youth-oriented businesses.
Create a store image that our target customers sees as both attractive and trendy.
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Company Summary
FireStarters will offer youth-oriented products and clothing, online, that are popular nationwide but not
available locally. Jill Stranton and Bobbi Hanson, co-owners of FireStarters, will create a cost-effective
operation that will quickly ship clothing and product purchases to the customer.
FireStarters will focus on marketing products to its target customers in small cities with populations
between 100,000 and 150,000 residents. The key to marketing strategy will be staging events that will
increase the visibility of the online store with the target customer base. We will use existing local
businesses that serve the same target customer base to co-sponsor these events.
Jill Stranton and Bobbi Hanson are the co-owners of FireStarters.
The start-up costs of FireStarters consists of product inventory, creating a promotion campaign and
establishing its website. FireStarters is funding start up with owner investments and a long-term
business loan.
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FireStarters will offer young customers the following youth-oriented products and clothing:
Shoes.
Jackets.
Sweaters.
Shirts.
ants.
Bags.
Hats.
T-Shirts.
Dresses and skirts.
Shorts.
Eyewear.
Time pieces.
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4arket Analysis Summary
According to the U.S. Census Bureau the population of teens (age 12-17), in 1999 was 23.4 million,
which represents 8.6% of the total U.S. population. Teenagers influence $324 billion in spending
annually, have $151 billion in disposable income, spend $24 billion annually, and will spend $1.2
billion online by 2002. Teens spend an average of $82 per week on entertainment, fashion, food, and
technology. These young people dubbed "Generation Y" dominate almost all facets of popular culture
and are the fastest-growing demographic under age 65.
Specialty youth clothing and products has grown into a billion dollar niche in the clothing industry. The
popularity of the Internet with young people has been well documented and has generated the
launching of a number of online stores by companies selling to that market segment. 4ost of these
stores have retail outlets in large urban areas that serve as the promotional vehicles for online
shopping.
The Internet is an accessible shopping tool for our target population. 64% of teens nationwide use the
Net at home. The majority of teens, 55%, consider using the Internet better than watching TV. Families
with teens are more likely to have Internet access than other households.
Online shopping by teenagers between 13 to 18 years in age is expected to total about $300 million
this year (2000) and is accelerating at about twice the rate of online shopping by adults. By 2003,
teenagers are expected to spend $2 billion annually online. By 2004, a clear majority of young
consumers will shop online. The top five purchases made by teens [online], based on sales volume,
are CDs/cassette tapes, clothing, books, computer software, toys and clothing.
Over the past ten years, there has been a profound change in population dynamics in the U.S. The
non-metropolitan population has been growing at almost the same rate as the urban population. The
West Coast, 4idwest, and the Northeast have the largest growth rate. Today, there are millions of
young people who don't live near a large urban center that offers the diversity in clothing products that
the youth culture demands. This has created a small market niche for businesses to sell clothing and
products to young people who live outside the urban areas. This is particularly true in communities
with a major college located in the community.
Currently, only regional malls offer access to the fashion and styles that young people want.
Unfortunately, the focus of these mall stores is only on the mainstream of the youth market. Alternative
clothing and products are rarely available outside the urban area. This is true because the companies
that create the clothing and products are small and sell primarily through urban specialty shops.
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Strategy and Implementation Summary
2. FireStarters will also plan 15 events in select communities to raise its visibility with the target
customers. The focus will be initially on the West Coast during the first year of operation. During the
second year of operation, FireStarters will plan events in the 4idwest and the East Coast. FireStarters
will sponsor skateboard competitions and demonstrations. We will assemble groups of boy and girl
skateboarders and sponsor them with the FireStarters logo. The groups will be scheduled to tour
selected communities. FireStarters will sponsor the events but will also seek local businesses that
target the same customer base to share the event's sponsorship. FireStarters will book local popular
alternative bands to play the event. At these events, FireStarters will distribute stickers, caps, t-shirts,
and promotional material offering a 20% discount on purchases.
FireStarters' competitive advantage is offering product lines that make a statement but won't leave you
broke. The major brands are expensive and not distinctive enough to satisfy the changing taste of our
target customers. FireStarters offers products that are just ahead of the curve and so affordable that
our customers will return to the website often to check out what's new.
Another competitive factor is that products for this age group are part of a lifestyle statement.
FireStarters is focused on serving youth outside the metropolitan areas. We want to represent their
style and life choices. We believe that we will create a loyal customer base that will see Firestarters as
part of their lives. To facilitate that connection, our website will have a chat section where our
customers can share what is happening in their communities as well as comment on our products and
what we should add to our product line in the future.
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Sales will be flat for the first 45 days of operation. We anticipate that sales will begin at this point and
increase as our marketing campaign progresses.
The following is the sales forecast for three years. First year monthly sales forecast is shown in the
appendix.
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$209,000 ?
$280,000 ?
$131,350
$210,000
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$63,000
$90,000
Shoes
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$44,000
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4anagement Summary
Jill Stranton will manage the daily operations of FireStarters. Bobbi Hanson will be FireStarters' buyer
and will also be responsible for marketing. Jill and Bobbi have over fifteen years of experience in the
retail clothing industry.
Jill has been the manager of Wild Women Clothing for five years. Wild Woman Clothing is a mail-order
business that focuses on young urban women ages 18 to 35. She supervised a staff of 10 and was
extremely effective in keeping the business cost effective as sales grew 50% over a two year period.
rior to her employment with Wild Woman Clothing, Jill was manager of Atomic Age Fashions, a
women's clothing shop, for three years.
Bobbi has been a buyer for Glamour Imports for the past four years. Glamour Imports sells to over 200
women's shops nationwide and generated over 10 million in sales last year. In addition to her
experience as a buyer, Bobbi was a marketing associate for Gap from 1994-1997.
FireStarters will have a staff of five:
Operations manager.
Buyer/marketing.
Order processor/website manager.
rocessing staff (2).
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$446,000
$540,000
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$192,600 ?
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$28,890
$31,800
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$58,510
$110,200
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$12,750
$12,570
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$11,586
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$610,000
$750,000
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Business ratios for the years of this plan are shown below. Industry profile ratios based on the NAICS
code 454111, Electronic Shopping, a subcategory of the Retail Trade, are shown for comparison. ?
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Interest Coverage
$153,730 ?
$186,104 ?
$254,787 ?
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