Business plan.doc

SummaryI am going to set up a store to sell the stationery which has high quality and low price to the students around us.According to the analysis about the customers and competitors, I have summarized two points which are very important. The first is that the quality and the price are the most important things which the customers care about. Therefore, I should make sure the stationery which I sell should have the high quality and the reasonable price. The second is that the most obvious advantage of the stationery that I sell is the price. Therefore, I should make sure my price should lower than my competitors.I have two main ways to publicize my business. The first is to build public websites and the second is to send leaflets. The only fixed cost is the price of the locker. And there are two variable costs. The first is the damage of the stationery. And the second is the wages. Accord to the estimate of the price, I can get about 0.7 RMB profit per pen and 2 RMB profit per note book.The results of the survey and the analysis show that my business plan has a strong market. As long as the price and the quality are OK, more and more students will join us. I will do better in the future.Table of Content1. Introduction 12. Market analysis 12.1 Customers analysis 12.2 Competitors analysis 23. Marketing plan 24. Financial analysis 34.1 Estimate costs 34.1.1 Fixed costs 34.1.2 Inventory 34.1.3 Wages 44.1.4 Other variable costs 44.2 Estimated revenues 44.2.1 Price X expected sales 45. Overall assessment 46. Work cited 5 1. IntroductionMy business is that I can buy the stationery from the internet and then sell the stationery to other people. As the students in college, stationery is the necessary things to us. The stationery in the internets shop is cheaper than the things in the store near our school. Therefore, I can sell the stationery in a lower price to other people and I can also make the profit.Firstly, I should publicize to the customers to let them know my store. And then I can show the photos of stationery on the websites. If someone wants to buy the stationery, he can leave messages to me. I will keep some stationery which students often use in the dormitory. So if customers want to buy the stationery, I can bring the stationery to them in time. And my price of stationery will be lower than the stationery in the shop near our college and a little higher than the stationery in the store online. 2. Market analysis2.1 Customers analysisAccording to the survey among the students, 84 percent of the students had ever bought products online, among them, 52 percent of them liked shopping online very much. These suggest that the potential market for the stationery store is strong. I can consider about this business. However, other question: “Do you like the person to market in your dormitory?” 54 percent of the students answered “no”, they thought that marketing in the dormitory may bore their lives. This suggests that the potential market is a little limited.Quality and price were the most important things which were considered of the stationery among the students. “Quality is the first position.” (Qiao Tianming, 7th April 2011)Through the survey, I have got the three famous brands which are ChenGuang, ZhenCai and Pilot. Most of them thought that the quality of ChenGuang and ZhenCai were OK and the price was not high. The quality of Pilot was very good though the price was a little high. “Quality decides all the things.” (Ron Shaw, 23rd August 2010)2.2 Competitors analysisI think that I have two main competitors. The first is the stationery stores near our college. Comparing with them, the price of my products is cheaper than theirs. And I can send the products to their dormitory. In response to the question: “If someone markets the products in your dormitory, would you buy the stationery.” 64 percent of the surveyed students answer “yes” and 36 percent of the surveyed students answered “no”. And 46 percent of the students showed that if the stationery of us were cheaper than the store near the dormitory, they would buy the stationery from us.30 percent of the students couldnt sure because they couldnt make sure that whether the quality of ours were the same as the products in shop. The second competitor is that the stationery stores online. The customers dont need to wait if they buy products from me and they also dont need to pay for the fare. Compare with the competitors, I think that I have two obvious advantages. First, my price is lower than the competitors but we have the same quality. And most of the students prefer the cheaper ones. “Saving money is a kind of excitement in shopping.” (Professor Liu, 5th March 2011) Second, I have more styles of stationery than my competitors. Students can choose the style which they like best.3. Marketing planThe first thing I should is to publicize. Among the students, RenRen website is the most popular to communicate. Therefore, I should build a public website on RenRen website. I can send new messages and photos on the website. Then I should print some leaflets and send them to each dormitory to let the students know my business and care my public website.The second thing is that I need buy some products from the shop online. Nowadays, there are many stores online called supply-marketing-operating which mean that they sell the products of some famous brand and the price is much lower than the store near our college because they dont need to pay for the rent. And I not only can make sure the quality but get the products in a lower priceThe third thing is that I need to get the order forms and sell the products to the customers. The customers can contact me across the QQ,mobile phone and RenRen website. They tell me what they need and I will bring the products to them in DUFE. The public website will show which products can buy at once and which products need to wait. If the customers buy the stationery alone, they need to pay for the fare. At many times, the fare is more expensive than the stationery. Therefore, I can wait for two or three days to have more order forms. And I only need to pay one fare or dont need to pay for the fare because if I buy enough stationery, the sellers may reduce fare. In this way, the customers can save money, and I can also sell the stationery which the price is a little higher than the store online to make profit.4. Financial analysis4.1 Estimate costs4.1.1 Fixed costsThe stationery doesnt need too much space, therefore, I dont need to rent the room and just save the stationery in my dormitory. I can just buy a small locker and keep the stationery in different kinds. Therefore I need to buy a locker. The price of locker which I find online is 116RMB (Xia Ting, 23rd May 2012, small creative shelf, taobao website).4.1.2 InventoryAccording to the survey, ChenGuang, ZhenCai and pilot are the three most popular brands. And I also find the five kinds of pens and three kinds of note books which are the most popular of each brand. I will keep 15 of each kind of pen and 5 of each kind of note books in my dormitory. The price of each pen of ChenGuang and ZhenCai is 1.45 RMB. The price of each note book of ChenGuang and ZhenCai is 4.3RMB. (Ge Haofeng, 17th May 2012, ChenGuang stationery, taobao website) The price of each pen of pilot is 5.5 RMB (Zhu Yatong, 24th May 2011, Pilot from Japan, taobao website) and I will buy the products once five days. I have made a deal with the store online. If I buy more than 100RMB products, they will free my fare.4.1.3 WagesMy business is a small business. At first, I will buy the products myself. And I need to find two persons to help me send the products to the customers. And I will give them 3 RMB a day. If there are too many order forms, I will add the people who send the products or add the wages.4.1.4 Other variable costsThe first variable cost is that the damage of the stationery. I cant estimate the cost. And I should keep the damage well to reduce this cost. The second variable cost is the wages. According to the conditions, I may change the numbers of employees or change the wages.4.2 Estimated revenues4.2.1 Price X expected salesI have searched the internet and ask the price of stationery of the store near our college. The price of the pens is about 1.5 RMB higher than the stationery in the shop near our college. Therefore, I can get about 0.7 RMB per pen. And the price of the note books is about 3.5 RMB higher than the stationery in the shop near our college. Therefore, I can get about 2 RMB per note book. The demand of the pens and the note books is large, I estimated that I can sell 10 pens and 5 note books. Therefore, I can have17 RMB profit a day. And this is just the estimate of two main products. I also send other stationery like folder, papers, and erasers.5. Overall assessmentFrom this, I can see that two things are very necessary. The first thing is to publicize. RenRen website is an important way. I can build a public website, upload the photos of products and update the information. The second thing is way to buy the products. Considering the quality and price, I can get the products from the store online especially the stores called supply-marketing-operating. Therefore, I not only can make sure the quality but get the products in a lower price. According to this, I think I can get the profit.In conclusion, the results of my sur