Athlete’s Warehouse Essay

Executive SummaryColins unemployment status has caused him to consider opening up his proclaim business. His dilemma is deciding where to locate his business either at Great Eastern Building downtown or Exploits Valley in the mall. Due to him organism unemployed, Colin needs to begin earning an income to live. To do so he needs to improve his projected sales so that his bring in income would be sufficient to live on and to be competent to counterbalance back Eds investment in the business.The most feasible solution to Colins situation is opening up the business downtown at the Great Eastern Building. This location produces a higher net income and a low-spiriteder break plane point than the mall. Although the net income starts out quite low, once the business is established as a tonus store with good swop and excellent customer service, customers loyal to them provide return to their store when they have a need or want that they can fill.Before the business is up and running , Colin essential determine how he depart integrate the four aspects of the grocery mix to satisfy his target market. He will need to decide how he will promote his store to the topical anaesthetic citizens in the best way possible, while giving them what they want and need on good quality products at affordable, competitive prices.Statement of Problem devoted that Colin is in an unfortunate situation, his primary concern now is deciding whether or non to open up a business. His immediate issue resulting from this dilemma is that he must decide where to locate his business. It is this particular dilemma that Colin needs to confront the issue of improving projected sales for the possibility of incurring a profit. In addition to cur stock splitly being out of work, Colin is looking to change his unemployed status. Colin must first consider his target market and then take into broadsheet the marketing mix when deciding where to locate and how he can sham the business profitable . This is a two-step process that is the main focusof any marketing managers job.Analysis of SituationDue to Colins unfortunate state of affairs and the situation of his last business, he must immediately convey work to earn an income. Before deciding whether or not he should open up a business, he needs to clearly define the market which the company would be gearing towards. Then he needs to manage the marketing process using product, price, place, and promotion. This is also known as the four Ps of the marketing mix. His business plan must be feasible and reasonable to be able to film his business successful.Many factors must be interpreted into consideration before deciding where to locate. To do so, he must consider the rent, the size of the store, competition in the area, pedestrian traffic and other things of a sympathetic nature. Colin should construct a projected income statement and break even analysis to compare the two locations to find out which site is more profitabl e. Furthermore, to avoid his preliminary cash flow problem he needs to make sure his inventory employee turnover is not too high and that he does not unite up all his capital in his assets. Either way would tie up his cash and he will not be able to pay his expenses again causing him to declare unsuccessful person.This business has a better chance of succeeding than the last unrivaled because this time around Colin will be able to devote all his time to the business instead of letting Ed take care of it for the most part.Action PlanFor Colin to start working, he must open up a business at the Great Eastern Building. Opening up a business in this location will not only provide Colin with work but it can also help him earn an income. This location not only provides the store with a lower rent than Exploits Valley it also allows Colin to set his own store hours. This gives him the flexibility to work when he wants and needs to. Since Colin does not like working for others, this si tuation is ideal for him.To make his business successful, Colin must consider an integration of price, promotion, place, and product. He must also try and distance themselves from their competition. To do so the brothers must maintain the quality of theirmerchandise and customer service, reasonable prices, and improve their promotion strategies. For one thing, the price of his products must be within a reasonable range of his competition Sports Experts. Too low and consumers may think he is offering low quality merchandise too high and most people will not consider purchasing from his store. Also, Colin must preserve the excellent service he is known for. Prospective customers will go to his store even though pedestrian traffic is not as high as Exploits Valleys due to his expertise in sports clothing and equipment. He must also uphold merchandise quality because even though he continues to provide advice to consumers, if his products are too shabby, most would not consider returni ng to his store.Attracting his target market will comprise of one thing in marketing providing them with what they want and need . To help promote his store to his target market, Colin must not rely on word-of-mouth advertizing even if the location of the store is in a small town. He must attract a potential customers eye to scratch his store. Distribution of flyers or even through the local radio station will suffice because the store is not located next to the highway.Although the projected sales are lower than the other location, the projected net income is higher (see Exhibit B). These figures are conservative due to the GAAP conservatism principle . Furthermore, for Colin to break even at Great Eastern he can sell less than he would have had to at Exploits Valley (see Exhibit C). Therefore, it will be easier to make a profit at Great Eastern than at Exploits Valley.ContingencyThe business may not generate the amount of sales projected, thus not being able to incur a profit. Fu rthermore, pedestrian traffic may also not be up to par which could possibly lower the make out of prospective customers. This would lead to lower sales than expected. Similarly, Colins expenses may be more than predicted. There could be some unforeseen problems that need to be fixed. For example, his employee turnover could be higher than expected ifthe staff he trains is not satisfied working there, they will leave and find employment elsewhere. Not only will they take his expertise with them, but Colin will have to train new employees. Consequently, more money will be needed which will add to his expenses, indeed lowering his net income. Some of these problems combined could lead to another closure. Should Colins new business fail after the first year, he should declare bankruptcy and start looking for employment elsewhere.