The Great Outdoors 4 Less

Hi-Def ConsultingSteve Brassard

Lee Martin

Anju Mehta

Kassandra Mohr

Brent Smith

Mike Tornopolski

Agenda

• Company Overview• Marketing Plan• Operations Plan• Human Resources Plan• Financial Plan• Conclusion

Company Overview

• Based in Winnipeg, MB• Outdoor goods retailer

– Focus on opening secondary market for outdoors goods

– Making high quality outdoors gear affordable for the recreational outdoors person

Marketing Plan

• The Market• Target Market & Customers• Product Mix• Competition• Pricing Policy• Promotion & Advertising• Marketing Costs

The Market

• 16.7% of Cdn households purchase camping gear

• Manitoba boasts thousands of lakes and 300 campgrounds

• 47,000 households in Manitoba in market for purchasing camping gear

The Market

Target Market

• Low to medium income levels• Recreational outdoor lovers• Family oriented store• Cyclical customers

Product Mix

• Two-thirds used outdoors equipment, one-third new outdoors equipment

• Product Mix– Camping gear, hiking, hunting accessories,

fishing gear

Competition

• Big Box Stores– Wal-Mart & Cdn Tire

• Internet Sites– EBay, Kijiji & Craig’s List

• Specialty Stores– Mountain Equipment Co-Op & Cabela’s

Pricing Policy

• Used goods– Priced similar to used goods sold on Internet

sites.– Dependent also on the trade-in price given

• New Goods– Low to mid priced goods at a price point

similar to the used goods

Promotion & Advertising

• Beginning March 2009 to coincide with opening April 2009

• Mid-April 2009 - Hosting “One Man’s Junk, One Man’s Treasure” events

• Sept 2009 - Partnering with organizations• Radio and newspaper advertising just

before holiday season - November

Marketing CostsAnalysis:

2009 2010 2011

Radio (Summer Season) 2,500.00 3,000.00 1,200.00 Radio (Off-Season) - 800.00 - Radio (Christmas Season) 1,000.00 1,000.00 1,000.00

Newspaper (Summer Season) 3,000.00 4,000.00 2,000.00 Newspaper (Off-Season) 1,000.00 2,000.00 - Newspaper (Christmas Season) 2,000.00 2,000.00 2,000.00

Sponsorship (Sporadic) 500.00 500.00 1,000.00

Television 3,000.00 12,000.00

Total Costs 10,000.00$ 16,300.00$ 19,200.00$

Operations Plan

• Day to Day Operations• Product Attainment Strategy• Store Location• Business Partnerships• Floor Plan• Capital Budget• Working Capital Management

Day to Day Operations

• Hours of Operation– Monday, Tuesday – 10AM to 6 PM– Wed to Fri. – 9AM to 9PM– Sat. – 10AM to 6PM– Sun. – 12PM to 5PM

Product Attainment

• Walk-Ins– Manager assessment of trade-ins– Consignment inventory

• Marketing for supplies– Outdoors groups and associations

• Hidden Gems – Thrift Stores, Garage Sales, Pawn Shops

Information System

• Inventory management system• Point of sale system• Quickbooks / Simply Accounting• Website

Store Location

• Neighbourhood: East Kildonan– North East Winnipeg

• Winnipeg commercial rental rates– $8 to $12/ sq foot

• Rent expense approx. $2000/mth

Business Partnerships

• University of Manitoba Entrepreneurship program

• YMCA, Girl Guides, Boy Scouts groups• Look into co-op program with recreational

studies program

Floor Plan

Front Door

Fitting Room Area Back room entrance

New camping equipment

Used camping equipment

New outdoors gear

Used outdoors gear

Used hiking gear

Used fishing gear

New hiking gear

New fishing gear

New hunting equipment

Used hunting equipment

Cash register

Exhibit #5: Floor Plan

Floor PlanExhibit #5A: Back room

Repair & Maintenance Table

Offi

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nd r

epai

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pplie

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Storage Space for used items

Storage Space for all new items

Emer. Exit

Office desk

Door to storefront

Capital Budget

• Minimal Capital Investment initially $12,800Initial Investment

Shelves, Racks, Displays $5,000Building Fitting Rooms $2,000Counter Building $2,000Information System, Cash Register $3,000Back room Tables $300Small Repair Tools $500

Total $12,800

Today 2009 2010 2011 2012 2013

Initial Investment $12,800Repairs & Maintenance $1,280 $1,280Renovate and refurbish display equipment $2,500Renovating counters and fitting rooms $2,000Repairs & Maintenance $1,730 $1,730

Working Capital Management

• A/R – No credit to individuals• KSF: Inventory Management

– Careful inspection of trade-ins– Strict consignment rules and policies

• A/P – Take advantage of discounts and favourable credit terms

Human Resources Plan

• Job Descriptions/Roles• Training Programs• Wages, Benefits, Mgmt & Training Costs• Human Resource Strategy

Job Descriptions/Roles

• Store Manager– Strong problem solving skills– Leadership abilities– Ability to train and motivate staff– Excellent time mgmt skills– Well developed knowledge of outdoor industry

• Sales Associates– Strong knowledge of outdoor activities & product mix– Ability to repair used outdoors gear– Efficiency at using point of sale system and other basic

computer programs

Training Programs

• Store Manager– National Outdoors Leadership Program– Outdoor Safety Course– Sporting goods retail seminars– Training in point of sale system

• Sales Associates– In-house training from store manager– Yearly store camping retreats

Human Resource Costs2009 2010 2011 2012 2013

Salaries $55,690 $71,119 $87,852 $90,048 $92,299

Benefits $3,667 $5,020 $6,470 $6,634 $6,802

Training Costs $7,500 $2,000 $2,050 $2,101 $3,000

Total Costs $66,857 $78,138 $96,371 $98,782 $102,101

Human Resource Strategy

• Store Manager position is the critical position for the store.

• Full-Time associate will be motivated by wages above minimum wage, product discounts and flexible hours

• Part-time associate will ideally be able to be flexible in their shifts to fill vacancies after store manager and full-time employee have their shifts. Ideally a university or high school student interested in the outdoors.

Financial Plan

• 5 year Income Projections• 5 year Cash Flow Projections• Financing Plan• Return on Investment• Important Financial Ratios• Sensitivity Analysis

Conclusion

• Unique business idea with a segmented market for outdoors equipment

• Strong financial projections for the future• Successful community partnerships