Bella Flats

Bella Flats“Convenience has never

been so beautiful”Amos Ng

Linda Lee Michelle Chin Rebecca Carchidi

To the Bank of Mom&Dad

Bella Flats

Competitive Analysis

Market Strategyand Analysis

Operations andManagement

Financials

Risk Mitigation

Conclusion

Bella FlatsWhat we want: $14,744

What for? 1.5 terms of schooling for the price of

one. But most importantly,

EXPERIENCE

Bella Flats

Competitive Analysis

Market Strategyand Analysis

Operations andManagement

Financials

Risk Mitigation

Conclusion

Bella Flats

Bella Flats

Competitive Analysis

Market Strategyand Analysis

Operations andManagement

Financials

Risk Mitigation

Conclusion

Bella Flats

Bella Flats

Competitive Analysis

Market Strategyand Analysis

Operations andManagement

Financials

Risk Mitigation

Conclusion

Bella Flats

Bella Flats

Competitive Analysis

Market Strategyand Analysis

Operations andManagement

Financials

Risk Mitigation

Conclusion

Bella Flats

Competitive Analysis

Bella Flats

Competitive Analysis

Market Strategyand Analysis

Operations andManagement

Financials

Risk Mitigation

Conclusion

Industryo Rising trend of increasing spending

on footwear by consumers from 2004 to 2009 (Market Research Institute GMID)

2004 2005 2006 2007 2008 20090

1000

2000

3000

4000

5000

6000

Consumer Expenditure on Footwear

Competitive Analysis

Bella Flats

Competitive Analysis

Market Strategyand Analysis

Operations andManagement

Financials

Risk Mitigation

Conclusion

IndustryoEdmonton – most affluent Canadian

province per capitao Large, increasing labour forceo 81, 470 females in Sales in

Services(StatsCan, 2006)

Bella Flats

Competitive Analysis

Market Strategyand Analysis

Operations andManagement

Financials

Risk Mitigation

Conclusion

Competitive Analysis

Bella Flats’ Competitors

Damn Heels

Dr. Scholl’s

Fast Flats

Bella Flats

Competitive Analysis

Market Strategyand Analysis

Operations andManagement

Financials

Risk Mitigation

Conclusion

Competitive Analysis

Damn Heelso Canadian companyo Foldable flats in small compact

cubeo Only available in 3 colorso Does not include clutcho $20 (not including shipping)o Only 2 locations in Edmonton

Bella Flats

Competitive Analysis

Market Strategyand Analysis

Operations andManagement

Financials

Risk Mitigation

Conclusion

Competitive Analysis

Dr. Scholl’s Fast Flatso Only comes in blacko Available only in few local

drugstoreso Includes a small gold clutcho Does not include anywhere to carry

high heels

Bella Flats

Competitive Analysis

Market Strategyand Analysis

Operations andManagement

Financials

Risk Mitigation

Conclusion

Competitive Analysis

Bella Flats’ Competitive Edgeo Offering more colorso Easy access for customerso Reasonable priceo Packaged in a trendy clutcho Includes foldable bag

Market Strategy & Analysis

Bella Flats

Competitive Analysis

Market Strategyand Analysis

Operations andManagement

Financials

Risk Mitigation

Conclusion

Market Segmento Females in Edmonton Alberta

1996 2001 2006 2011 20160

100,000

200,000

300,000

400,000

500,000

600,000

700,000

431,298468,922

520,915 573,527

631,453

Fem

ale

Popu

latio

n

Year Stats Can, 2006

Market Strategy & Analysis

Bella Flats

Competitive Analysis

Market Strategyand Analysis

Operations andManagement

Financials

Risk Mitigation

Conclusion

Target Marketo Edmonton Alberta Femaleso Ages 15-39

Non-target market

64%

Tar-get Market36%

Bella Flats

Competitive Analysis

Market Strategyand Analysis

Operations andManagement

Financials

Risk Mitigation

Conclusion

Market Strategy & Analysis

• Age: 15-24• Population size:

78,535• 15.1% of Market

Segment• High school Students• University/College

Students• Entering Work Force

Target Market

#1

• Age: 25-39• Population size: 110,980• 21.3% of Market

Segment• Already in Work Force

Target Market

#2

Market Strategy & Analysis

Bella Flats

Competitive Analysis

Market Strategyand Analysis

Operations andManagement

Financials

Risk Mitigation

Conclusion

Target Market - Studentso 15-24 years old, 15% of market

segmento High school, university/college,

newly entering the labour force o Fashionable and trendyo Includes 18 year olds who are more

likely to frequent clubs and bars

o Higher portion of disposable income

Bella Flats

Competitive Analysis

Market Strategyand Analysis

Operations andManagement

Financials

Risk Mitigation

Conclusion

Market Strategy & Analysis

Target Market - Workerso 25-39 years old, 21.3% of market

segmento Already part of labour forceo Larger disposable incomeo Convenience

Market Strategy & Analysis

Bella Flats

Competitive Analysis

Market Strategyand Analysis

Operations andManagement

Financials

Risk Mitigation

Conclusion

Surveyo Surveyed 100 females living in

Edmonton, Albertao Approx. 60 females between ages

15-24o Approx. 40 females between ages

25-39

Market Strategy & Analysis

Bella Flats

Competitive Analysis

Market Strategyand Analysis

Operations andManagement

Financials

Risk Mitigation

Conclusion

Survey2-3

times a week42%

2-3 times a month45%

2-3 times a

year10%

Never2%

99% wear high heels on special occasions and events (i.e. Clubs, bars, weddings)

o 100% experienced pain from wearing heels

Operations & Management

Bella Flats

Competitive Analysis

Market Strategyand Analysis

Operations andManagement

Financials

Risk Mitigation

Conclusion

Operating Cycle

o Spring/Summer fashion trendo Bi-weekly Inventory count

Operations & Management

Bella Flats

Competitive Analysis

Market Strategyand Analysis

Operations andManagement

Financials

Risk Mitigation

Conclusion

Geographical Locationo Retail Kiosk: Edmonton, Albertao Young, Affluent workforce

Suppliero Supplier: Shenzhen, Guangdong

(China)o Cheap manufactured products,

International Porto “Shenzhen Free Trade Zone”

tax relief

Operations & Management

Bella Flats

Competitive Analysis

Market Strategyand Analysis

Operations andManagement

Financials

Risk Mitigation

Conclusion

Facilities and Improvementso Kiosk: lease starting May 2011 o Spring/Summer

(May, Jun, Jul, Aug) o WEMo Expansion to Southgate in Year 4

Storageo Inventory stored privately

Operations & Management

Bella Flats

Competitive Analysis

Market Strategyand Analysis

Operations andManagement

Financials

Risk Mitigation

Conclusion

Facilities and Regulationso “General Business” licence required

($194 CAD/year)o “General liability insurance”

($1,000/year)

Day to day Operationso Opening shift: Open kiosk, check stocko Closing shift: Balance payments and

stocko Website Orders – Daily fulfilment

Operations & Management

Bella Flats

Competitive Analysis

Market Strategyand Analysis

Operations andManagement

Financials

Risk Mitigation

Conclusion

Compensation and Ownershipo Partnership, Equal Ownership and

Profits

Investorso Small outfit, potential growth

Bella Flats

Competitive Analysis

Market Strategyand Analysis

Operations andManagement

Financials

Risk Mitigation

Conclusion

Financials

• Profit vs. __ graph

FinancialsBella Flats

Competitive Analysis

Market Strategyand Analysis

Operations andManagement

Financials

Risk Mitigation

Conclusion

Start-up costso $8,860 to cover first month, or

$2215/family

Profit after summero $27,096 total

Second yearo $33, 088

FinancialsBella Flats

Competitive Analysis

Market Strategyand Analysis

Operations andManagement

Financials

Risk Mitigation

Conclusion

Year 3:o $21, 433/family for costs of $85,

732.73o Making $41, 395.46 total

Year 4:o Expansion to Southgateo Total costs = $193, 343.11

FinancialsBella Flats

Competitive Analysis

Market Strategyand Analysis

Operations andManagement

Financials

Risk Mitigation

Conclusion

•Insert Financials Again

Risk MitigationBella Flats

Competitive Analysis

Market Strategyand Analysis

Operations andManagement

Financials

Risk Mitigation

Conclusion

Assumptions and Risks

o Fashion trend and demand for foldable flats in Europe and Asia

o Alberta cold winter weather

o Assumed to be also well received in Edmonton (Western Canada)

Risk MitigationBella Flats

Competitive Analysis

Market Strategyand Analysis

Operations andManagement

Financials

Risk Mitigation

Conclusion

Possible Major Problems

o Delays in Delivery (Guangdong, China)

o Quality and Reliabilityo Lack of confidence, leasing Kiosk to

an“untested product”

o Insufficient Monthly Sales (need to cover overheads)

o Demand may decline during Winter

Risk MitigationBella Flats

Competitive Analysis

Market Strategyand Analysis

Operations andManagement

Financials

Risk Mitigation

Conclusion

Plans to Minimize Risks

o Promotions, advertising (University, clubs)

o Posters & flyers to increase awareness

and saleso Reserve stock stored in Edmontono Order additional stock when

inventorydrops below 20%

ConclusionBella Flats

Competitive Analysis

Market Strategyand Analysis

Operations andManagement

Financials

Risk Mitigation

Conclusion

Questions&

Answers

Appendices

Appendices – Poster Ad

Appendices - Website

Appendices – Shoe Size

5 6 7 8 9 100%5%

10%15%20%25%30%35%40%

6%

15%

34%29%

13%

3%

Shoe Size Survey Results

Shoe Size

21%

63%

16%

Chart Title

Large (9&10)

Bella Flats Size Chart

Small (5&6)

Medium (7&8)

Appendices – Damn Heels

Appendices – Fast Flats

Operations & Management

Bella Flats

Competitive Analysis

Market Strategyand Analysis

Operations andManagement

Financials

Risk Mitigation

Conclusion

MON TUE WED THU FRI SAT SUN

MorningShift

Opening

9:30AM-

5:30PMRebecca (8 hrs)

9:30AM-

5:30PMRebecca (8 hrs)

9:30AM-

5:30PMRebecca (8 hrs)

9:30AM-

5:30PMRebecca (8 hrs)

9:30AM-

5:30PMRebecca (8 hrs)

9:30AM-

5:30PMMichelle (8 hrs)

10:30AM-

5:30PMMichelle (7 hrs)

EveningShift

Closing

4:30PM-

9:30PMLinda(5 hrs)

4:30PM-

9:30PMAmos(5 hrs)

4:30PM-

9:30PMLinda(5 hrs)

4:30PM-

9:30PMAmos(5 hrs)

4:30PM-

9:30PMLinda(5 hrs)

4:30PM-

9:30PMAmos(5 hrs)

N/A

Location: West Edmonton Mall (Kiosk)Co-owner 1: Full-Time at Kiosk (Part-Time Studies)Co-Owner 2, 3, and 4: Working Part-Time at Kiosk

(Full-Time Undergrads)

Appendices – Organization

Retail/Operations Manager

(Co-Owner 1)

Sales Executive (Co-Owner 3)

Sales Executive (Co-Owner 4)

Sales Executive(Part-Timer)

Marketing/Accounts Manager

(Co-Owner 2)

Bella Flats Organization Chart

Appendices

Appendices

Appendices

Appendices

Appendices

Appendices