Fun Tastic

7/23/2019 Fun Tastic

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Fun-Tasteic

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BUSINESS PLAN

Business Plan Prepared By

Bivolaru FlorinBumbescu AlinSuciu Lorena

December !"#

Run KC © 2010. All Rights Reserved. 1



TABLE $F %$NTENTS

!ecutive Summar"..................................................................................................................... #

$roduct % Service $lan.................................................................................................................&'escri(tion o) $roduct%Service ................................................................................................&$roduct%Service Liabilit" .......................................................................................................... *$roduction................................................................................................................................+Facilities...................................................................................................................................+Su((liers..................................................................................................................................+Related $roducts%Services and S(in,o))s.................................................................................+-rademars/ $atents/ Co("rights/ Licenses/ Ro"alties.............................................................overnmental A((rovals .........................................................................................................

anagement and 3rgani4ation $lan..........................................................................................10

Legal Form o) Business..........................................................................................................10anagement -eam................................................................................................................ 10Board o) 'irectors%Advisor" Board ........................................................................................10Recruitment and Selection o) m(lo"ees............................................................................... 11Com(ensation and 35nershi(...............................................................................................11m(lo"ee Re5ard and 6ncentive $lan....................................................................................11Communication......................................................................................................................126n)rastructure..........................................................................................................................126ndustr" $ro)ile....................................................................................................................... 1#aret Anal"sis...................................................................................................................... 20aret $enetration.................................................................................................................21$ricing....................................................................................................................................27

Financial $lan............................................................................................................................ 2*Start,u( Costs........................................................................................................................ 2*Sales $ro8ections...................................................................................................................2*6ncome $ro8ections.................................................................................................................2*Cash Re9uirements...............................................................................................................2*Sources o) Financing.............................................................................................................2+!it Strateg"...........................................................................................................................2+$ro8ected Financial Statements..............................................................................................2+

A((endi!....................................................................................................................................2




E&ecuti'e Summary

:enture 'escri(tion

Fun,-astic

este mai mult dec;t un restaurant vegan < ra5 vegan (e (ia=a din -imisoara/ estealternativa (er)ect> (entru acele (ersoane care s,au g;ndit cel (u=in o dat> c> este de dorit s>)ac> o schimbare ?n diet> indi)erent dac> motiva=ia o constituie s>n>tatea/ un cor( mai armoniossau (oate chiar diversitatea. 6ar c;nd o ast)el de mas> gustoas> se (oate savura @i ?n acorduride a44 ?n surdin>/ ?ntr,o oa4> de lini@te )a=> de tumultul ora@ului/ )ie ?n (au4a de (r;n4/ (entrua v> ?nc>rca de energie (entru restul 4ilei/ )ie la o cin> romantic> sau ?ntre (rieteni/ aceastare(re4int> garan=ia unei e!(erien=e care s> v> ?nc;nte toate sim=urile. Li(sa tim(ului/ a ins(ira=iei sau (oate chiar gustul ciudat ?n ca4ul ?n care am avut ghinionuls> ?ncerc>m ceva care nu ni se (otrive@te/ ne )ac/ (e mul=i dintre noi/ s> ocolim o diet> maiechilibrat>/ s>n>toas> @i care s> (un> cu adev>rat ?n valoare )ructele @i legumele ce se (ot

?mbina at;t de armonios ?n re=ete delicioase vegane sau ra5 vegane.

Fun-Tastic se di)eren=ia4> (rin multitudinea de re=ete inovatoare/ ?n care se ?mbin> (er)ect

condimente @i ingrediente de cea mai bun> calitate/ (entru a satis)ace @i cele mai (reten=ioase

gusturi. ;ncarea servit> este e!clusiv vegan> )>r> carne/ la(te sau ou>/ iar toate )elurile de

m;ncare sunt (reg>tite (e loc/ imediat du(> (reluarea comen4ii/ (entru ca dumneavoastr> s>

bene)icia=i la ma!im de to=i nutrien=ii (e care m;ncarea crud> ne,o o)er>. 'eserturile ?n varianta

ra5 vegan> se g>sesc @i ele ?ntr,o gam> variat> av;nd un gust delicios/ aromat @i mult mai

s>n>toase/ )iind a(reciate chiar si de co(ii .

$entru a veni ?n ?nt;m(inarea celor care nu reu@esc s> se des(rind> de la birou sau (entru cei

care vor s> savure4e (re(aratele Fun-Tastic

?n intimitatea (ro(riei locuin=e/ restaurantul (une ladis(o4i=ia clien=ilor s>i serviciul de Dlivrare la domiciliu%birouE.

6ndi)erent dac> ve=i o(ta s> lua=i masa ?n cadrul restaurantului sau oriunde altundeva/ ado(t;nd

constant acest ti( de diet> ve=i avea (arte de toate bene)iciile alimenta=iei vegane < ra5

vegane/ (rintre care se num>r> @i cre@terea nivelului de energie/ ?nt>rirea sistemului imunitar/

deto!i)ierea organismului/ (ierderea ?n greutate etc.

Ce este Ra5 :egan

Ra5 vegan sau veganismul de ti( crud se re)er> la hrana crud> din care sunt e!cluse carnea/

ou>le sau lactate.

;nc>rurile de acest )el nu sunt (re(arate termic @i ?@i (>strea4> toate (ro(riet>=ile minerale/

(roteine/ en4ime/ vitamine.

Run KC © 2010. All Rights Reserved. #



$re(aratele au la ba4a )ructe/ legume/ semin=e/ cereale/ uleiuri vegetale (resate la rece/ (lante

medicinale/ sucuri (roas(ete/ semin=e germinate. Se (ot consuma ?n starea lor natural>/ (rin

deshidratare/ mi!are sau (ur @i sim(lu t>iate @i consumate ca salate.

Se (ot )ace varia=ii @i combina=ii deosebite chiar @i (e gustul celor mai (reten=io@i. Buc>t>riara5,vegana este o adev>rat> art> a combina=iilor. La(tele de migdale/ su(ele/ (;inea din

semin=e @i nuci/ )ala)elul din legume @i susan/ sarmalele sunt doar c;teva dintre variante.

anagement and 3rgani4ation $lan

Strategia organizationala vizata va trebui sa mentina organizatia activa, dinamica si cu un nivel

ridicat al fortei competitionale. Aceasta strategie va avea ca obiectiv dezvoltarea produsului sau,

respectiv imbunatatirea serviciului sau si a meniurilor. Se va incerca in acelati timp o strategiede diferentiere a produsului serviciu, pentru a putea perceput ca unic.

Strategia de diferentiere permite, prin oferirea unui produs de o calitate net superioara,

posibilitatea de a practicapreturi mai mari, realizand proturi mai ridicate si o mai larga

exibilitate cu furnizorii.

Conducerea rmei va asigurata de un manager Bivolaru Florin angajat care va administra

rma si care va prezenta periodic un raport de activitate si care va selectat in special dupa

trasaturile sale umane!"

asumarea responsabilitatii;

puterea ridicata de munca;

placerea de a lucra in domeniu;

pricepere organizatorica;

originalitate in gandire;

sinceritate si loialitate;

spirit inovator.

Ca importanta, al doilea dupa administrator va bucatarul#sef al restaurantului,Suciu $orena.

%xperienta va caracteristica sa principala, care va cantari in luarea &otararii de a angajat.

Run KC © 2010. All Rights Reserved. G



Acesta va trebui sa e absolvent al unor unor cursuri de specialitate si sa faca dovada priceperii

sale in arta culinara.

'ostul de economist, al treilea in piramida ierar&ica, va ocupat de Bumbescu Alin, absolvent

de (nginerie %conomica.

'rocesul de deservire va avea loc pe o suprafata de )**.+ m*, va contine )+ mese si maximum

- de locuri. 'rocesul de productie va avea loc pe o suprafata de / m*, bucataria ind dotata

cu urmatoarele utilaje" cuptor clasic, cuptor cu microunde, roboti de bucatarie, spalator

vase,mese de lucru, rastele, dozatoare si masina de ing&etata.

Servirea si procesul de productie va realizat de un numar diferit de angajati in functie de

orarul zilnic si zilele de sarbatori.

areting $lan

0inand cont de cateva din aspectele implicate de acest tip de afacere cum ar produs#serviciu

de inalta calitate.%ste obligatorie analiza atenta si conceperea unei foarte eciente strategii de

mar1eting si de promovare a serviciului oferit. 'olitica rmei in domeniul mar1etingului si

reclamei va pune accent pe unicitatea serviciului prestat. %c&ipa manageriala trebuie sa

conceapa o strategie de mar1eting care sa contina metode si elemente specice ecarei etape

din viata restaurantului.

Astfel, in c&iar ziua desc&iderii localului vor invitate personalitati publice ale orasului

0imisoara, oameni de cultura, oameni de afaceri de succes care se bucura de o buna reputatie

si prieteni. 2eclama in aceasta perioada va bine orientata, tintind segmentul de piata urmarit.

Acest lucru se va realiza prin intermediul"

Cartilor de vizita trimise pe adresa societatilor comerciale, a frmelor, sau

institutiilor publice, culturale si de invatamant;

Diuzarii de brosuri in cazul sosirii unor delegatii straine sau desasurarii unor

conerinte sau comunicari stiintifce;




Un mediu de comunicare im masa, radioul va f o alta cale de a ace reclama;

insa acest procedeu va f olosit doar pe perioade scurte si intermitente;

Inainte de lansarea aacerii, pentru a inorma potentialii clienti de intentia de a se

deschide un nou restaurant cu un anumit specifc si dierentiat prin calitate;

'retul specialitatilor culinare va in functie de preturile preparatelor ec&ivalente oferite de

concurenta3 in acest caz pretul va asemanator. 4iferentierile de pret vor apare la

specialitatile casei!, acestea prevazand un pret mai ridicat ce trebuie sa demonstreze calitatea

deosebita a produselor ce ofera siguranta unui serviciu receptionat ca unic.

Financial $lan

-otal start,u( costs )or Run KC are H1#+/0**.

Sales (ro8ections have been estimated as )ollo5sIJear 1 H#7/+70 Jear 2 H72#/+00 Jear # H7+/00

6ncome (ro8ections based on sales indicated above 5ere determined to beIJear 1 H2*/+G2 Jear 2 H ##/1*2 Jear # HG#/G+

3ne hundred ninet" )ive thousand dollars is needed to insure a (ositive cash )lo5 throughoutthe )irst three "ears. An initial investment o) H*0/000 5ill be made b" the o5ner. An additionalH127/000 5ill be secured through a loan )rom )amil".

-im Clar/ o5ner/ (lans to gro5 the business and o(en other locations in the metro area. hen

he reaches retirement age/ he (lans to sell the business.

Run KC © 2010. All Rights Reserved. &



Product ( Ser'ice Plan

Description o) Product(Ser'ice

Run KC is a retail running shoe store o))ering )oot5ear/ a((arel and accessories to serious andas(iring runners. -he (roduct line o))ered b" Run KC has been care)ull" screened to ensure thatcustomers )ind satis)action on the )irst tr". $roducts are o) a high 9ualit" in the mid to high (ricerange.

Run KC di))erentiates itsel) )rom other running shoes store b" the level o) service (rovidedduring and a)ter the sale. 'uring the sale/ Run KC (rovides gait anal"sis/ individual )itassistance/ care)ull" selected inventor" and 5ell trained sta)) to hel( runners select the bestshoes and accessories to enhance their running e!(erience. 6n addition/ a customer )ile is e(ton (urchases/ documenting (re)erences and interests to develo( a histor" 5ith each customeras 5ell as a (ersonal relationshi(. A)ter the sale/ the atmos(here o) Run KC is club,lie ando))ers runners a (lace to hang out 5ith one another and connect. -he store o))ers training(rograms/ boot cam(s and a running club. 6nvolvement in local running events b" sta)) ands(onsorshi( o) these events also strengthens relationshi(s 5ith runners.

Run KC is dedicated to hel(ing runners be success)ul through an understanding o) individualneeds and through ongoing su((ort.

Features and Bene)its

FeatureI Run KC is o(en 10 am to + (m onda" M -hursda" 10 am to * (m on Frida"/ am M& (m on Saturda" noon to & (m on Sunda".

Bene)itI !tended store hours mae it eas" )or customers to access both merchandise andtraining o((ortunities.

Foot*ear

FeatureI Care)ull" screened selection o) )oot5ear. anagement researches the running)oot5ear available on the maret and then (rescreens these o(tions )or their customers.

Bene)itI !(erts have done the research. Customers are more liel" to )ind a shoe that suitstheir needs 5ithout trial and error saving the customer time and mone".

FeatureI Free videota(ed gait anal"sis.

Bene)itI ver" runner is guaranteed (ersonal and (ro)essional e!(ertise to determine the shoethat 5ors )or their (articular )oot and )or their st"le o) running. -his saves customers time andmone" and contributes to a success)ul running e!(erience.

FeatureI A customer (ro)ile is e(t on each customer.

Bene)itI An" sales (erson has access to the customersN records. -his hel(s sales (ersonnelmatch the customerNs needs to current merchandise available.

Run KC © 2010. All Rights Reserved. *



Training

FeatureI Run KC o))ers coaching sessions/ coordinates a 5eel" running club/ hostseducational seminars and s(onsors running events.

Bene)itI 3ngoing su((ort and camaraderie (rovide a running communit" to hel( customers

develo( and maintain a long term love )or the s(ort. 6n addition/ this t"(e o) ongoing (h"sicalactivit" is generall" associated 5ith health bene)its.

Apparel + Accessories

FeatureI hile )oot5ear is the core o) Run KC/ the store also o))ers a variet" o) a((arel andaccessories.

Bene)itI -he availabilit" o) accessories and a((arel in the store o))ers the customer theconvenience o) one sto( sho((ing.

FeatureI As 5ith the )oot5ear/ all (roducts o))ered are care)ull" screened and sta)) has in,de(th

(roduct no5ledge

Bene)itI -he customer can be assured that each selection o))ers com)ort and durabilit" and thatsta)) can (rovide advice regarding the best (roducts to )ill their (articular needs.

Stage o) De'elopment

-he s(ecialt" athletic shoe industr" is in the late gro5th/ (ossibl" maturit" stage. Run KC is inthe (lanning stage. A retail location is scheduled to o(en anuar" 2012.

Product(Ser'ice Limitations

Running shoes and a((arel are lie an" item in the a((arel industr" 5ith an element o) st"le. Asne5 st"les are introduced/ older st"les have limited a((eal to the consumer. 6t 5ill be necessar"to balance inventor" to assure that Run KC carries enough st"les and si4es to meet demand5ithout having e!cess inventor" 5hen st"les change. Also/ i) shoes sit on the shel) )or a long(eriod o) time/ the materials can lose some o) their abilit" to cushion and absorb im(act.-here)ore/ not even considering st"le/ it is im(ortant that inventor" remain )resh.

Being an inde(endent retailer/ Run KC 5ill not be able to tae advantage o) volume (ricing tothe same degree as su(erstores 5hen (urchasing )rom 5holesalers. Oo5ever/ thesesu(erstores have limited customer service. Run KC 5ill target customers 5ho are 5illingto (a" more )or service and advice.

Product(Ser'ice Liability

Since customers 5ill loo to Run KC )or advice and training/ the com(an" 5ill be o(en toliabilit". A Limited Liabilit" Com(an" 5ill be )ormed to (rotect the o5nerNs (ersonal assets.

Run KC © 2010. All Rights Reserved. +



$rior to (artici(ation in the Run KC Running Club/ training sessions and boot cam(s/ customers5ill be re9uired to read the rules associated 5ith each and to sign a 5aiver. Rules related to useo) e9ui(ment 5ill also be (osted in the store. Children 5ill not be allo5ed on e9ui(ment. Sta))5ill receive training on all e9ui(ment and 5ill be re9uired to (ass a test regarding rules andusage. m(lo"ees 5ho (er)orm leadershi( roles in the running club 5ill be those 5ith the moste!(erience and in addition/ the" 5ill be re9uired to (artici(ate in training on a (eriodic basis.

-he Business 35ners $olic" (urchased )or the store 5ill include coverage )or store (ro(ert"and inventor" both onsite and at tradesho5s and other running e!hibits. 6n addition/ insurance5ill include coverage to minimi4e the ris both in the store and at running events as 5ell as5orerNs com(ensation.

Production

Run KC is a retail store. 6nventor" 5ill be (urchased )rom manu)acturers and 5holesalers ando))ered )or sale at the retail location. erchandise and su((liers 5ill be care)ull" screened toassure that Run KC recommends onl" the best o))erings.

-raining (rograms 5ill be o))ered in (artnershi( 5ith Brett eber/ trainer and coach. Oe 5illo(erate as an inde(endent business o5ner o))ering training at the store. Brett 5ill (a" a (ortiono) the class )ee collected 27P to Run KC. hen )easible/ a trainer 5ill be hired as a )ull,timeem(lo"ee.

Facilities

Run KC 5ill be located in a 2100 )oot s9uare s(ace in the $ar5a" $la4a sho((ing center insoutheast ohnson Count"/ Kansas. -he center is an u(scale o))ice/ retail and li)est"lecommunit" 5ith one hal) mile o) (rime street e!(osure along 1#7th Street bet5een Roe and Qall

Avenues. -he center 5ill )eature sho(s 5ith their o5n identit" in a setting 5ith uro(eanarchitecture and gardens.

Suppliers

Run KC 5ill use the )ollo5ing su((liers )or a((arel and )oot5earI Adidas Asics Balaga BroosCham(ion C, 'eFeet Feetures 6cebreaer Qe5 ealand 6llumiQ6- armot i4unooving Com)ort Qe5 Balance Q6K $atagonia $earl iTi Race Read" Saucon"Smart5ool Sugio -horlos TL-6A R6O- S3CK ig5am

-he )ollo5ing su((liers )or 5ill be used )or accessoriesI -6 $3LAR armin Qathan T$olar Bod"glide Ouman Kinetics Oammer Qutrition.

,elated Products(Ser'ices and Spin-o))s

6n the )uture/ Run KC 5ill also carr" nutritional su((lements. At some (oint/ a nutritionist 5ill beadded to the sta)) either as an em(lo"ee or on a contract basis. 3ther health and in8ur" related(roducts 5ill also be considered.

Run KC © 2010. All Rights Reserved.



Trademars. Patents. %opyrig/ts. Licenses. ,oyalties

A trademar 5ill be develo(ed and registered to establish the Run KC brand. -he trademar 5illbe used on all (romotional materials/ hang tags/ signage/ etc. An" instructional sheetsdevelo(ed in,store 5ill be (rotected 5ith a co("right.

0o'ernmental Appro'als

At the cit" level/ an occu(ational license is re9uired in the cit" o) Lea5ood. Run KC 5ill need abuilding (ermit as the site is being set u(. An outdoor sign (ermit and a securit" alarm (ermit5ill also be re9uired.

At the count" level/ Run KC 5ill register business e9ui(ment 5ith the 3))ice o) the A((raiser. AmerchantNs license is not re9uired in ohnson Count"/ Kansas.

At the state level/ Run KC 5ill be registered 5ith the Kansas Secretar" o) StateNs o))ice as anLLC. 6n addition/ Run KC 5ill need to obtain a business sales ta! identi)ication number and

sales ta! e!em(tion certi)icate 5ith the state and arrange )or orers Com(ensation 6nsuranceand Tnem(lo"ment 6nsurance.

At the Federal Level/ a Federal m(lo"ee 6denti)ication number 5ill be obtained.




1anagement and $rgani2ation Plan

Legal Form o) Business

Run KC 5ill be a Limited Liabilit" Com(an" registered 5ith the Secretar" o) StateNs o))ice in thestate o) Kansas. -he LLC 5as selected to (rovide liabilit" (rotection )or the o5nerNs(ersonal assets and to assure that the o5ner o) the com(an" can maintain control. -heLLC 5ill elect to be ta!ed as a (artnershi(. Additional insurance 5ill also be (urchased tolimit liabilit" and ris3

1anagement Team

-he 35ner and Chie) !ecutive 3))icer o) Run KC 5ill be -im Clar . Since anuar" 200#/ -imhas been em(lo"ed b" RunnerNs Resource/ a Boston based store )eaturing running shoes anda((arel. Ois res(onsibilities have included sales/ inventor" management/ customer service and

event management. $rior to RunnerNs Resource/ -im 5as a (ublic accountant 5ith -B rou(/Ltd Accounting Firm. -im received his Bachelor o) Arts degree in Accounting )rom BostonCollege/ Boston/ assachusetts in a" 2000. Ois retail e!(erience/ BA degree and e!(erienceas a (ublic accountant 5ill (rovide a strong )oundation o) sills needed to manage the store.-he resume in A((endi! A (rovides details outlining -imNs sills and accom(lishments.

-im has been an avid runner )or 17 "ears and has com(leted more than one hundredmarathons/ hal) marathons/ and races o) various lengths. Oe 5ill (rovide e!(ertise in the areaso) running/ accounting and inventor" management )or Run KC. 6nde(endent consultants 5ill beutili4ed to (rovide e!(ertise in the areas o) mareting/ merchandising/ OR )unctions andtechnolog".

As the o(eration gro5s/ an Assistant anager 5ill be added to the team. -his individual 5ill bean e!(erienced runner 5ith strong business sills com(limentar" to those o) the o5ner.

Board o) Directors(Ad'isory Board

-he Advisor" Board members listed belo5 have agreed to be available to -im )or ongoingadvice and guidance as issues arise during the start u( (hase o) the business. -he" 5ill alsomeet as a grou( semi,monthl" to revie5 )inancial statements and the (rogress o) the business. 'ue to distance/ this meeting 5ill be held utili4ing technolog". 6nitiall"/ there 5ill be nocom(ensation )or the Advisor" Board. -his 5ill be considered once the business is (ro)itable.

r. Andre5 Billa/ Baner and Business Consultant/ First Ban o) the $rairie/ Sha5nee/ KS.r. Billa 5as the o5ner o) a sta))ing )irm )or 20 "ears and has been an inde(endentbusiness consultant )or 27 "ears. Ois areas o) e!(ertise are in human resources/ (a"rolland )inance.

s. onica inters/ Store o5ner/ idland Running Store and marathon runner. St. Louis/3. s. inters 5ill (rovide advice based on her e!(erience in the industr". She 5illalso (rovide contacts 5ith vendors/ su((liers and running associations.




r. 'onald Adams/ retired sales re(resentative/ marathon runner/ and triathlete. Boston/A. r. Adams 5ill (rovide advice and resources based on his e!(erience as a salesre(resentative )or an athletic shoe com(an" and as an accom(lished runner.

r. Steve Oamilton/ C$A/ s(eciali4es in business (lanning and management consulting 5ith-B rou(/ Ltd Accounting. r. Oamilton 5ill assist in business and strategic (lanning

and 5ill evaluate )inancial statements.

,ecruitment and Selection o) Employees

'uring the start,u( stage o) the business/ management res(onsibilities 5ill )all (rimaril" on theo5ner/ -im Clar. an" o) the su((orting )unctions 5ill be (rovided through inde(endentcontractors. As sta)) is added/ all em(lo"ees )rom management to sales 5ill be e!(eriencedrunners and%or tri,athletes. 6t is critical that ever"one maing decisions and (roviding advicehave a 5oring no5ledge o) the (roducts and services o))ered. anagement believes that thisis (ossible onl" i) em(lo"ees have a (assion )or the s(ort.

6nvolvement b" the o5ner in running clubs and events 5ill (rovide connections to (otentialem(lo"ees. 3nce the business is established/ e!isting em(lo"ees 5ill be ased )or re)errals.-he store 5ebsite 5ill also have an OR section 5here 8obs 5ill be (osted and a((licationsacce(ted. $otential em(lo"ees 5ill be intervie5ed. A bacground chec 5ill be conducted onindividuals considered )or em(lo"ment and re)erences 5ill be called.

6nde(endent contractors 5ill be recruited and selected in the same manner as em(lo"ees.

%ompensation and $*ners/ip

As 35ner and anager/ -im Clar 5ill begin to 5ithdra5 a nominal amount as com(ensation o)H2G/000 in Jear # and (lans to increase the dra5 as sales increase. Starting 5ages 5ill be

H10.00 (er hour )or (art,time em(lo"ees and H12.00 (er hour )or )ull,time em(lo"ees. -here 5illbe no bene)its (acage available to management or em(lo"ees during the )irst "ear. Bene)ito(tions 5ill be e!(lored at the end o) "ear t5o.

Employee ,e*ard and Incenti'e Plan

A discount on running shoes/ a((arel and e9ui(ment attendance at educational eventss(onsored b" the store and the o(tion to (artici(ate in store s(onsored running classes 5ill beused to motivate and maintain em(lo"ees. m(lo"ees 5ho re(resent the store in area runs 5illhave their race )ees (aid b" the store.

ithin the store/ an associate o) the month 5ill receive the Ugolden shoe a5ardE/ a traveling

bron4ed running shoe and t,shirt. -his 5ill be done 5ith an attitude o) U)un com(etitionE. -he"5ill also be recogni4ed through (ostings on the 5ebsite and 5ithin the store. m(lo"eesNaccom(lishments in races 5ill be acno5ledged and celebrated. 3verall/ the team environment5ill be such that each em(lo"ee )eels lie a member o) a )amil".




%ommunication

A mission statement re)lecting the values o) the business 5ill be develo(ed/ (osted throughoutthe store and ingrained in ever" as(ect o) the business.

eel" team meetings 5ill su((ort this mission and t5o 5a" communications 5ill beencouraged both verball" and 5ritten. An intranet site 5ill be used to (ost an in)ormal/ internale,ne5sletter/ em(lo"eeNs schedules and the em(lo"ee manual. -he e,ne5sletter 5ill includeannouncements as 5ell as recognition o) em(lo"ee accom(lishments both 5ithin the businessand in the running 5orld. An on,line suggestion bo! 5ill allo5 em(lo"ees to submit ideas )orever"one to see.

anagement 5ill conduct an in)ormal (er)ormance evaluation mid,"ear )or each em(lo"ee. -his5ill encourage an e!change o) in)ormation bet5een management and sta)). A )ormal evaluation5ill be conducted annuall".

In)rastructure

Richard Crosb"/ Attorne"/ 3verland $ar/ Kansas M advice on legal structure/ contracts andleases (aid on an hourl" basis.

-im 3NShea/ C$A/ 3NShea and Associates/ 3verland $ar/ 3 M ta! services accountingadvice )rom an outside (ers(ective (aid on hourl" basis.

'iane Ford/ 6nsurance Broer/ Lea5ood/ KS M insurance advice no direct (a"ment.

Rebecca 'u))e"/ Commercial Baner/ First Ban o) Sha5nee/ 3verland $ar/ KS M no direct(a"ment.

$aul eir/ 3n Site areting/ 3verland $ar/ KS M mareting consultant (aid on a (ro8ectbasis.

Run KC © 2010. All Rights Reserved. 1#



1areting Plan

Industry Pro)ile

%urrent Si2e

At/letic S/oes 4in general5

-he QA6CS code )or Athletic Shoe Stores is GG+2107. -he most recent census data )or thiscategor"/ 200*/ is as )ollo5sI

6 o) stores Sales 4!!!5 Payroll 4!!!5 6 employees

&&2+ H+/G7G/12& HGG/G12 &*/*

-his QA6CS code includes all t"(es o) athletic shoes including but not limited to runningshoes.

,unning S/oes and Apparel

Census data (rovides in)ormation )or all t"(es o) athletic shoes including running shoes.6ndustr" Associations such as the Qational S(orting oods Association QSA and theS(orting oods anu)acturerNs Association S A (rovide in)ormation s(eci)ic to therunning shoe industr".

-he QSANs US(orting oods aret in 2010E re(orted retail sales dollars o) running%8ogging)oot5ear at 2.#& billion in 200. Athletic and s(orting clothing sales 5ere re(orted at .27billion.

,unning Participation

Sales o) running shoes and a((arel are closel" tied to the number o) individuals (artici(atingin this s(ort. According to the S(orting oods anu)acturing Association SA the totalTS Running $artici(ation number )or 200 e!ceeded G# million.

0ro*t/ Potential

At/letic S/oes 4in general5

ro5th in the Athletic Shoe store industr" bet5een 1* and 200* according to TS Census)igures is documented belo5.

7ear "889 !! !!9

6 o) stores 72** &07 &&2+

Sales 4!!!5 H7/2G/#0 H*/2&&/#71 H+/G7G/12&

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As indicated earlier/ this QA6CS code includes all t"(es o) athletic shoes including but notlimited to running shoes.

,unning S/oes and Apparel

ro5th statistics s(eci)ic to the running shoe industr" based on Qational S(orting oods Association re(ortsI

ogging and Running Foot5ear Sales in T.S.I

"8:: "88: !!: !!8

Foot5ear Tnits 27.1 million 2.G1 million #. million #.*& million

Foot5ear 'ollars +* million 1.G* billion 2.#1 billion 2.#& billion

Athletic and s(orting clothing (urchases in T.S.I

!!; !!9 !!8 !"! Forecast

Athletic ands(orting clothing

10.&1 billion 10.+# billion .27 billion .*1 billion

Running a((arel *2&.* million 0 million ++# million Qot available

As indicated in the chart above/ athletic and s(orts clothing (urchases totaled H10.+# billion in200*/ an increase o) 2P over 200&. 'uring that same (eriod/ running a((arel (urchasesincreased 27P. hile sales o) running a((arel declined )rom 200* to 200/ the QSA re(ortsthat the industr" is Urecession resistantE 5hen com(ared to man" industries. -he association)orecasts a 7P increase in sales o) Athletic and S(orting clothing )or 2010.

-he Leisure -rends rou( 5hich re(resents TS running s(ecialt" stores re(orted a 10P gro5thin running shoe sales )or 12 months ending in arch 200. A 12.#P decline in a((arel salesthrough this distribution channel 5as re(orted )or the same (eriod.




,unning Participation

As indicated earlier/ the S(orting oods anu)acturers Association re(orts that there 5eremore than G# million runners in the TS in 200 5hich is an increase o) &.*P over 200+.

According to the SA/ (artici(ation in running activities has increased over the last nine"ears as )ollo5sI running%8ogging u( G0P running%5aling on the treadmill u( #+P/ 5aling

)or )itness u( 21P and trail running u( 1&P.

Industry Trends

According to Running TSANs State o) the 6ndustr" Re(ort 2010I

• -echnological (roducts such as $S/ oogle arth/ QieVi$od s"stem and Adidas 6com(uter technolog" )or )oot5ear along 5ith U(er)ormanceE )abrics have contributed tothe increased interest in running in recent "ear s.

• hen the econom" reached Wgloom and doom/E the number o) runners surged M

Urunning is an e))icient 5a" to e!ercise/ a )ast 5a" to lose 5eight and an ine!(ensive5a" to sociali4e.E As 8ob losses have reached historic highs M so has the number o)individuals (artici(ating in running events.

• Runners indicating that the econom" has had an im(act on their running sa" that the"have made the )ollo5ing ad8ustmentsI )e5er races/ 5earing running shoes a little longer/com(eting in local races/ not rene5ing club membershi(s/ )orgoing race -,shirts/ andlooing )or online (romotional codes.

• Social media is (roviding a Ucommunit" (lat)ormE to announce race (artici(ation/re9uest donations/ 8oin su((ort training grou(s/ (ost status u(dates/ and communicate5ith race (artici(ants.

• S(ecialt" Running Stores had a smaller share o) running shoes sales in 200 as 6nternetsales continue to increase maret share. anu)acturers consider the s(ecialt" runningstore to be a vital lin to the customer and have begun to hel( s(ecialt" retailers b"coordinating (romotional events and clubs.

As cited in the article Uhat is the 'i))erence Bet5een omenNs < enNs Running ShoesE2010/ the last or sha(e o) a running shoe should be designed )or the individualNs )oot and se!.Running shoe manu)acturers are beginning to incor(orate gender )oot structure di))erences intothe design o) running shoes.

SA re(orts the increased (o(ularit" in running shoes and a((arel items )eaturing ne5 high(er)ormance )abrics/ technolog" and green materials.

QSA Sporting Goods Market in 2010 re(orts

• that )emales are increasing their (urchases o) more e!(ensive )oot5ear as 5ell asincreasing their (ercentage o) the athletic )oot5ear maret. -he increase in )emale(artici(ation in the s(ort has contributed to their need to (urchase athletic )oot5ear )or(er)ormance rather than )ashion.

Run KC © 2010. All Rights Reserved. 1&



• a signi)icant increase in the number o) (eo(le (artici(ating in triathlons. As o) 200/there 5ere 1.2 million on,road triathlon (artici(ants and &&&/000 o)),road (artici(ants.-his re)lected a gro5th rate o) 71.GP since 200* )or on road and a gro5th rate o) #*.P)or o)),road tri,athletes.

6n 200/ Running TSA re(ortedI

• a record number o) marathon )inishers M G&*/000 , a 10P increase over 200+• 1.1 million hal) marathon )inishers , a 2GP increase M the largest area o) gro5th

• 10 million TS road race )inishers , a record high

%onclusions

Based on census and industr" re(orts/ )uture gro5th in this area a((ears (romising.Continued gro5th in the number o) runners and record (artici(ation in running eventssu((ort this statement.

hile the econom" has a))ected the industr"/ it has been slight 5hen com(ared to otherindustries. Running shoes can be costl". Oo5ever/ the s(ort overall re9uires a minimal dollar investment. 6t has/ there)ore/ (roven itsel) to be some5hat Urecession resistantE. Runninga((arel is not as resistant to economic stressors. Oo5ever/ o))ering a((arel is im(ortant asa convenience )actor )or customers and is su((lemental to the core business.

-he greatest threat to retailers o) running shoes is the 6nternet. -he QSA re(orts that salesthrough this channel increased )rom 7P to .#P bet5een 2007 and 200. -he ma8orrunning shoe com(anies have recogni4ed this and are (roviding su((ort )or the s(ecialt"running shoe store 5here runners can obtain a (ro(er )it as 5ell as guidance andcamaraderie.

$t/er c/aracteristics

According to Bi4iner and industr" contacts/ the gross (ro)it margin )or athletic )oot5ear is G7Pand )or athletic clothing/ it is 70P.

Running TSA re(ortsI

• -oda"Xs runners are highl" educated * (ercent have earned a college di(loma.Sevent",three (ercent o) the runners surve"ed b" Running TSA re(orted a householdincome o) more than H*7/000.

• -he (roduct breado5n in s(ecialt" running stores is t"(icall" 1&P a((arel and *0Pshoes. 6n this t"(e o) store/ the best sellers includeI stabilit" road running shoes/ casualshoes/ bra to(s/ insoles and socs.

Run KC © 2010. All Rights Reserved. 1*



At/letic Foot*ear Purc/ases by Age and 0ender 4units5

Foot5ear (urchases are greatest )or those under 1G and those bet5een G7 and &G 5ith thelatter categor" increasing signi)icantl" in the last seven "ears. See chart belo5.

200 2002Tnder 1G 2&.+P #1.GP1G,1* &.+P +.7P1+,2G G.&P &.#P27,#G 12.+P 17.0P#7,GG 1G.2P 1#.&PG7,&G 2&.2P 1.2P&7 < 3lder +.&P &.2P

ale GG.+P G&.PFemale 77.2P 7#.1P

SourceI Running TSA

At/letic Foot*ear Purc/ases by 1ont/ !!8 4units5

Sales o) athletic )oot5ear are some5hat seasonal as documented in the chart belo5.

an Feb ar A(r a" une ul" Aug Se(t 3ct Qov 'ec#.+P G.*P &.#P &.P +.+P .0P 10.1P 1G.2P 12.P .0P *.P &.GP

SourceI Running TSA

A (ersonal intervie5 5ith Bill $hilli(s 'ecember 2010/ sales re(resentative )or a ma8orrunning shoe manu)acturer/ revealed the )ollo5ing note5orth" (ointsI

• Running shoe com(anies have designated shoes that are onl" o))ered through s(ecialt"running shoe stores. -hese shoes are not carried b" the larger Ubo! stores.E

• Running shoe com(anies monitor the (rices o) shoes sold through the larger bo! storesto mae sure that the" do not go too lo5.

• S(ecialt" running shoe stores receive certain shoe lines (rior to other distribution

channels.• A strong relationshi( 5ith manu)acturersN sales re(resentatives is the li)eline o) the

running shoe store. Re(resentatives are the lin to cor(orate o))ices and (romotionalitems/ event s(onsorshi(s/ s(eaers and industr" training o((ortunities.

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Distribution %/annels

Run KC is a S(ecialt" Running Shoe Store. Foot5ear and a((arel are (urchased )rom ma8ormanu)acturers and stoced )or (urchase b" the consumer in a retail location.

%ompetiti'e Analysis

Direct %ompetition

Based on a search conducted through 555.su(er(ages.com and the Kansas Cit" Jello5$ages/ the )ollo5ing ma8or com(etitors are 5ithin a 10 mile radius o) Run KC. -hesecom(etitors all o))er running shoes in either a s(ecialt" running shoe environment or 5ithin as(orting goods store. 6n addition/ the 6nternet o))ers an increasing number o) direct com(etitors.

0reater <ansas %ity At/letic %ompany*000 110th St/ 3verland $ar/ KS &&20

Lea*ood ,unning Emporium'eer $ar all/ 3verland $ar/ KS &&21G

1arat/on 1aer 3aland all/ 3verland $ar/ KS &&21G

B,$S Sports 7th and Laevie5/ 3verland $ar/ KS &&20G

Indirect %ompetition

6ndirect com(etitors include de(artment stores and shoe stores 5ith a shoe de(artment thatcarries athletic shoes.

Shoes that are not designed s(eci)icall" )or running but might be substituted )or running shoescould also be considered a source o) indirect com(etition. -his t"(e o) shoe can be )ound atman" o) the direct com(etitors listed above. 6ndividuals might also decide to become involved inanother )itness activit" and there)ore/ the shoes )or those activities 5ould com(ete )or thedollars that might be s(ent on running shoes. Such activities might include aerobics or similare!ercise/ "oga/ biing and 5aling.

Future %ompetition

-he ma8or source o) )uture com(etition might come )rom one o) t5o sourcesI 1 other runningshoe stores or s(orting goods stores that o(en in the same geogra(hic area and 2 the 6nternet.

6ndustr" research indicates 6nternet sales o) running shoes have increased that runners use the6nternet at a higher than average rate and that nearl" 0P o) runners have 6nternet access inthe home. -here)ore/ 5hile man" services and s(eciali4ed )it canNt be o))ered through the6nternet/ (roducts can be (urchased via the 5eb.




%ompetiti'e Analysis

Run KC 5ill di))erentiate itsel) )rom other running shoes stores b" the individual attention(rovided to customers as 5ell as the su(erior level o) (roduct no5ledge maintained b" all sta)).

-he most signi)icant direct com(etition in the ohnson Count" area comes )rom the small/inde(endent store that o))ers (ersonal service. -his includes reater Kansas Cit" AthleticCom(an"/ Lea5ood Running m(orium and BR3S S(orts. -he management o) Run KChas identi)ied the )ollo5ing 5eanesses )or these com(etitorsI reater Kansas Cit" AthleticCom(an" M gro5th has led them to hiring sta)) 5ho donNt have a strong interest in runningnor the (roduct no5ledge needed Lea5ood Running m(orium M has ver" limited hoursand BR3S S(orts M has inventor" limited to one brand. At Run KC/ all sta)) 5ill bededicated runners 5ho 5ill receive in,de(th (roduct training/ the store 5ill carr" si! o) the to(selling brands o) running shoes and store hours 5ill include evenings and Sunda"s.

Run KC sta)) 5ill receive u(,to,date training on the latest technological advances relating torunning shoes and running a((arel. -his 5ill include training on )abric (er)ormance and)unctionalit" as 5ell as technological advances related to shoes. Customers 5ill have totalcon)idence in the no5ledge and the advice shared b" sta)).

anagement 5ill mae the most o) the current trend in 5hich the ma8or running shoecom(anies 5or directl" 5ith s(ecialt" shoe retailers to im(lement mareting (lans to reach ne5runners and better serve e!isting customers. A strong relationshi( 5ill be develo(ed 5ith salesre(resentatives o) the lines carried in the store. -his relationshi( bet5een the store and runningshoe com(anies 5ill assure that Run KC sta)) has direct access to manu)acturers and there)ore/access to (roducts/ (roduct no5ledge/ trends and su((ort.

6n addition/ Run KC 5ill develo( a (ersonal relationshi( 5ith customers. A customer )ile 5ill bee(t on (urchases/ (re)erences and interests to develo( a histor" 5ith customers and a(ersonal relationshi(. 6nvolvement in local running events b" Run KC sta)) and s(onsorshi( o)

these events 5ill strengthen those relationshi(s as 5ill the running club s(onsored b" Run KC.-he atmos(here o) the store 5ill be similar to that o) a club 5here individuals hang out/ mae)riends and e!change in)ormation.

Run KC 5ill be dedicated to hel(ing runners be success)ul through an understanding o)individual needs and through ongoing su((ort. See Com(etitive atri! in A((endi!.




1aret Analysis

Target 1aret Pro)ile

Run KC 5ill be located in ohnson Count"/ Kansas M the )astest gro5ing count" in Kansas.

According to the TS Census/ the maret (ro)ile )or ohnson Count" in 200 can be describedasI

-otal $o(ulation 200..................................................................................................7G2/*#* Average Oousehold 6ncomeI......................................................................................H +/27 Average Oome :alue................................................................................................ H2G/000-otal Oousing TnitsI.................................................................................................... 21*/+&*P $o(ulation change 2000,200I................................................................................V20.2PP ale $o(ulation......................................................................................................... G.GPP Female $o(ulation..................................................................................................... 70.&Pedian age...................................................................................................................... #7.*

thnic 'iversit"I...........................................................hite 5ith a gro5ing Asian (o(ulationFamil" -"(esI..........................................................................................Cou(les and )amiliesducation LevelsI............................................................................BachelorNs 'egree G*.*Pm(lo"ment LevelsI........................................................................ $ro)essional hite Collar Oousing -"(eI.....................................................................................................Oomeo5nersTrbanicit"I.................................................................................................................Suburban

a( 6n)o re(orts that 5ithin a 7 mile radius o) the store the average household income isH11/#G# 5ith a (o(ulation gro5th rate o) 27P )rom 2000 to 200.

%ustomer Pro)ile

-he t"(ical customer o) Run KC can be described as )ollo5sI

enderI .......................................................................................................... ale or FemaleOousehold 6ncomeI.............................................................................................3ver H*7/000

Age Range ..........................................................................................(rimar" #0 , &0 "ears.........................................................................................................secondar" 1G,2

ducation Level..........................................................................Some College College radm(lo"ment.........................................................................................Students $ro)essionalOousing -"(e........................................................................Oomeo5ners living 5ith (arentsFamil" -"(es.................................................................................................... Famil" singles

Li)est"leI Run (artici(ate in leisure s(orts reads Runners orld 6nternet users

According to the Running TSA State of the Sport 2010 / core runners runners 5ho train "earround and run an average o) 22G da"s (er "ear are highl" educated 5ith *P having a collegedi(loma are a))luent 5ith *#P having a household income over H*7/000 and (urchase anaverage o) #.2 (air o) running shoes (er "ear. 3) this grou(/ &G.G P o) the 5omen s(ent overH0V (er (air and 70.1P (urchased their running shoes at a s(ecialt" running store 7&.GP o)the men s(ent H0V and G2.P made their (urchases at a s(ecialt" running store. -o((re)erences in brands 5ere AS6CS/ Broos and Qie.




1aret Analysis

-he demogra(hics o) the target maret identi)ied earlier match that o) the customer (ro)ile )orRun KC. -here are enough (otential customers 5ithin the maret to su((ort this business.

According to a( 6n)o/ in 200 Retail Sales :olume 5ithin 7 mile radius in related industries5asI

Shoe stores.......................................................................................................... HG7/#+2/#0GS(orting ood Stores........................................................................................... HG0/7&2/#

Future 1arets

A)ter establishing a success)ul business in 3verland $ar/ the o5ners o) Run KC (lan to o(enother retail locations in the Kansas Cit" metro(olitan area. -he Kansas Cit" northland hase!cellent (otential since is it a gro5ing area 5ith limited com(etition.

1aret Penetration

%ompany Image

hen someone describes Run KC/ the" 5ill use the 5ords no5ledgeable/ e!(erienced/su((ortive and )riendl". -he" 5ill describe the atmos(here o) the store as a (lace "ou cango 5here "ou )eel lie (art o) a team and 5here "ou get ans5ers "ou can count on. -o develo( this image/ Run KC 5ill have a strong (resence in the running communit".Locall"/ the store 5ill be a s(onsor )or running events and sta)) 5ill be (resent at thoseevents in both (artici(ative and su((ortive roles. :isibilit" in the running communit" 5ill be

strong. Sta)) 5ill no5 customers b" name and 5ill interact 5ith them on a (ersonal level atrunning events. 6n addition/ ever"one 5oring at Run KC 5ill be an avid runner and 5ill beno5ledgeable and (assionate about the s(ort. Sta)) and customerNs runningaccom(lishments 5ill be recogni4ed 5ithin the store and on the com(an" 5ebsite.

Sta)) 5ill also be ver" no5ledgeable about running shoes and other (roducts carried b" thestore. Customers 5ill no5 that (roducts have been screened and that an" (roduct carriedin Run KC meets high standards o) 9ualit" and (er)ormance.

A logo 5ill be develo(ed that re)lects the image (resented above and 5ill be (resent on all(rinted materials business cards/ brochures/ stationar"/ invoices/ envelo(es/ bags etc as 5ellas on signage and t,shirts.

%ustomer Ser'ice

-he main customer service strateg" 5ill be to build a relationshi( 5ith each customer so thatsta)) at Run KC can understand and res(ond to each customerNs needs. A (ro)ile 5ill bee(t on each customer and each (urchase 5ill be documented as 5ell as an" (roblems the"have identi)ied.




-he return (olic" 5ill be stated as )ollo5sI

We take pride in fitting your shoes correctly. Customers can take time to assesstheir decision by testing each purchase in their home or on an indoor track or treadmill.If in this initial test you determine that your purchase is not appropriate you can returnthe shoes for credit. !his return "ith receipt should be made "ithin 21 days. If shoes are

#isibly "orn "e "ill not be able to issue credit unless there is a manufacturer$s defect.%ach return is treated on an indi#idual basis. We stri#e to pro#ide incomparable ser#ice.

Location

Run KC 5ill be located a retail sho((ing center at 1#7th Street bet5een Roe and Qall in southernohnson Count" Kansas. -here are several running shoe stores or stores that carr" similarshoes north o) 11th Street listed (reviousl" in com(etitors. -he (o(ulation is e!(anding southand man" sho((ing centers are being built in the southern (art o) the count". Currentl"/ thereare no running shoe stores in the area o) 1#7th.

Internal Sales

ver"one 5ho 5ors at Run KC 5ill be (art o) the sales )orce and 5ill be trained in allas(ects o) )itting running shoes and anal"4ing customer needs. -he o5ner/ -im Clar/ 5illmanage the store and assist in sales. 6n addition/ three (art time sales (eo(le 5ill be hired.$art,time individuals 5ill be (aid H10.00 (er hour to start )ull,time sta)) 5ill start at H12.00(er hour. -here 5ill be no bene)its (acage during the earl" "ears. -raining 5ill be on the 8oband through sta)) meetings.

A discount on running shoes/ a((arel and e9ui(ment attendance at educational eventss(onsored b" the store and membershi( in the store running club 5ill be used to motivateand maintain em(lo"ees. -he team environment o) the store 5ill be such that eachem(lo"ee )eels lie a member o) the team%)amil".

E&ternal Sales

Qo sales re(resentatives 5ill be used. Run KC 5ill not have an" (roducts to license to others.

Run KC © 2010. All Rights Reserved. 2#



Ad'ertising and Promotion

Run KC 5ill base their mareting e))orts on the )ollo5ing tacticsI• being a strong strategic alliance (artner • being an integral (art o) the communit"

• being a source o) e!(ertise in the )ield o) running

Activities to su((ort those tactics are outlined belo5I

AdvertisingI

Ad in Midland %#ents/ a monthl" local running/ biing and triathlon maga4ine Ads in ne5sletters o) local running clubs Ads on running 5eb sites , idland vents/ local running clubs and race sites

$romotionsI

-,shirts 5ith the store name. A catchy t,shirt 5ill be designed that can be sold and used )ormareting as 5ell.$romotional items such as 5ater bottles/ shirts and socs 5ith the store logoCou(ons distributed at running events'iscounts to high school and college trac and cross countr" team members

A US(ie QightE 5ill be held at the store )or each school district at the beginning o) eachseason. 3n designated evenings/ members o) the teams in each district can (urchaseshoes at an additional discount.'iscounts )or members o) local running and triathlon clubsClasses and seminars o))ered in store and through communit" education%(ars andrecreation )ocused on training techni9ues/ selection o) shoes/ and nutrition )or runners6n)ormational seminars )or high school and college trac and cross countr" coaches and

team members

Communit" vents and $artnershi(sI

S(onsorshi( o) Run KC Club

6nvolvement in ma8or local running events including training sessions/ s(onsorshi(/ banners/e!hibits and (acet (ic u(

'onations to local grou(s )or auctions and ra))les t,shirts/ socs and 5ater bottles 5ith RunKC logo

Social edia M use o) Faceboo and -5itter to develo( )ans and )ollo5ers. $romotions ands(ecials 5ill be announced as 5ill u(dates on races and events.

$romotional events in (artnershi( 5ith ma8or running shoe manu)acturers. For e!am(le/ arunning shoe com(an" ma" bring in a 5ell,no5n runner )or the cit" marathon. Run KC 5ill(artner 5ith the running shoe com(an" to host an event 5ith the runner at the store. 3r/sales re(resentatives ma" bring in (revie5s o) ne5 shoes )or runner to use )or a trial UrunE.

'evelo( relationshi(s 5ith and (artner on events 5ith trainers and )itness centers

embershi( and (artici(ation in the local chamber o) commerce and running clubs

Run KC © 2010. All Rights Reserved. 2G



$artner 5ith health insurance com(anies that o))er health and )itness re5ards (rograms

Publicity

S(onsorshi( o) events 5ill be highlighted in (ress releases sent to local media. -hese 5illincludeI

S(onsored events 5ithin the store )or various charities. For e!am(le/ Run KC 5ill collectused shoes )or ShoesGSouls/ a non(ro)it organi4ation that rec"cles shoes and distributesthem to (eo(le in need. S(ecial events 5ill also be held leading u( to the annual Race )orthe Cure. $roceeds 5ill be donated to the Susan B. Komen Foundation.

6n)ormational articles on running 5ill be submitted to local media. Run KC 5ill (osition itsel)as the e!(ert source )or running 9uestions and advice. -hese articles 5ill also be submittedto radio and television stations in an attem(t to be highlighted on tal sho5s and%orne5scasts.

$ress releases 5ill be sent out to acno5ledge the accom(lishments and a5ards received

b" sta)) in running events.

Telemareting (Direct mail

A limited amount o) direct mail 5ill be used. ailings )or s(ecial o))ers or events 5ill be mailed tothe customer database onl". A ne5sletter 5ill also be sent to customers on a 9uarterl" basis. 6naddition to in)ormation and ti(s/ the ne5sletter 5ill recogni4e the accom(lishments o) customersin races locall" and throughout the nation.

Internet

Run KC 5ill have a 5eb(age. -he )ocus o) the (age 5ill be in)ormation and education. Although (roduct o))erings 5ill be sho5n on the 5eb (age/ running shoes 5ill not be sold inthat manner. -he )ocus on )it and (ersonal service does not lend itsel) to sales via the 5eb.Running a((arel and (roducts 5ill not be sold via the 5eb (age during the earl" stage o) thebusiness. Oo5ever/ this o(tion ma" be added in the )uture.

-he 5eb (age 5ill also be used to recogni4e accom(lishments o) customers in races andevents as 5ell as the accom(lishments o) high school and college teams. $ictures )rom both(ublic events and high school and college events 5ill be (osted on the 5eb (age to dra5tra))ic to the site.

-he 5ebsite 5ill also haveI

location and contact in)ormationcalendar o) u(coming area events o) interest to runnersma(s and lins to running trailslins o) interest and lins to com(limentar" (roducts%servicescou(ons and s(ecial o))erscontests

Since runners tend to use the 6nternet at a higher (ercentage than average/ e,mail(romotions and ne5sletters 5ill be considered. Social media 5ill be used e!tensivel".




Trade S/o*s

Formal trade sho5s 5ill not be used to (romote Run KC. -he store 5ill have e!hibits andbooths o))ering (roducts and services at ma8or local running events.

anagement )rom Run KC 5ill attend the 6nde(endent Running Retailers Association nationalmeeting/ U-he Running vent.E

1aret Penetration E))ecti'eness

Tnless recogni4ed as an e!isting customer/ individuals 5ho come into the store 5ill be ased U6sthis "our )irst visit to our storeE 6) the ans5er is "es/ the 9uestion 5ill be )ollo5ed b" UOo5 did"ou hear about usE Sta)) 5ill document each visitorNs ans5er. Results 5ill drive )uturemareting decisions.

henever (ossible/ a s(ecial o))er 5ill be made in con8unction 5ith each event/ media

o((ortunit" or (resentation. Cou(ons and other o))erings 5ill be coded so that sta)) can tracthe results o) (romotions through various grou(s or events.

Pricing

Pricing Strategy

Run KC 5ill (rice themselves in line 5ith other s(ecialt" running shoe stores. $rices 5ill notattem(t to com(ete 5ith larger stores such as the reater Kansas Cit" Athletic Com(an" .-hese stores can o))er lo5er (rices because the" (urchase in 9uantit". Oo5ever/ the customerservice o))ered b" large chain stores is limited. Run KCNs (ricing strateg" 5ill be one that re)lects

image and 9ualit" M not onl" in relation to the (roducts but also the customer service and(ersonal attention o))ered in,store.

Price List

Running Shoes 5ill range bet5een H*0 and H1G0 retail.

A((arel 5ill be 9ualit" name brands. Running shorts 5ill range )rom H1+ M #7 range retail shirts)rom H22 M 7 and 8acets )rom HG7 M 200.

Accessories 5ill include small items such as socs and 5ater bottles in the H+ M 20 (rice range.

6n the )uture/ more costl" items such as monitors 5ill be considered.

See A((endi! B )or a detailed (rice list.

Pricing Policies

Run KC 5ill use the standard maru( )or all items sold in the store.

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S(ecials 5ill be o))ered on a regular basis. 'iscounts 5ill be o))ered to running clubs/ schools/Faceboo )ans/ and (re)erred customers. 3nce a customer s(ends H700 in Run KC/ the" 5illbe considered a (re)erred customer and 5ill receive a 7P discount on )uture (urchases.$re)erred customers 5ill receive s(ecial cou(ons and o))ers on a monthl" basis. -he" 5ill alsoreceive an additional 7P discount 5hen the" bring ne5 customers to the store.

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Financial Plan

Start-up %osts

-otal start,u( costs are H1#+/0**. 3) that total/ H0/000 is )or the initial inventor" andH2&/000 5ill be invested in e9ui(ment/ )i!tures and leasehold im(rovements. Remainingcosts are )or de(osits/ mareting and set,u(.

Sales Pro=ections

Run KC has a (lanned o(ening o) anuar" 2012. Sales (ro8ections have been estimated as)ollo5sI

H#7/+70 Jear 1 M 2012H72#/+00 Jear 2 M 201#H7+/00 Jear # , 201G

onthl" sales (atterns )ollo5 sales (ercentage distributions as re(orted b" the QationalS(orting oods anu)acturers Association.

Brea E'en Analysis

Brea,even in dollars 5as calculated to be H #2/02&

Brea,even in units 5as calculated at 2+00. 6n this case/ units 5ere considered to be anaverage sale.

Income Pro=ections

6ncome (ro8ections based on sales indicated above 5ere determined to beI

H 2*/+G2 Jear 1 M 2012 H ##/1*2 Jear 2 M 201# H G#/G+ Jear # M 201G

Run KC 5ill be (ro)itable in Jear 2. -he o5ner 5ill begin to tae a salar" in "ear #.

%as/ ,e>uirements

An initial investment o) H17/000 is needed to insure a (ositive cash )lo5 throughout the )irstthree "ears o) o(eration. ith this investment/ cash )lo5 5ill reach a lo5 o) H22/+*2 in the )irst9uarter o) "ear 2 based on the (ro8ections in this (lan. -his should be enough to assure that a

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(ositive cash )lo5 is maintained even i) une!(ected e!(enses occur or sales are less than(ro8ected initiall".

Sources o) Financing

An initial investment o) H*0/000 5ill be made b" the o5ner. An additional H127/000 5ill besecured through a loan )rom )amil" and re(aid on a monthl" basis 5ith +P interest.

E&it Strategy

-im Clar/ o5ner/ (lans to gro5 the business and o(en t5o to three additional locations in themetro area. hen he reaches retirement age/ he (lans to sell the business.

Pro=ected Financial Statements

- Monthly Cash Flow Statement

- Year-End Income Statement

- Year-End Balance Sheet

- Financial Analysis/Ratios




Appendi&

Documents

Fun Tastic