Feasibility study for adidas clothing stores

Feasibility study for adidas clothing stores This feasibility study for the clothing shop, that is Adidas stores, was conducted over a period of 3 months, from June to September, 2010. The business would operate as a sport brand and located in the most famous business circle, Victoria square, as research and surveys conducted during the feasibility research period indicate that the sport brand and the site would be the most profitable way. The goals of the clothing shop are varied, including satisfying the consumers need, making a profit and consolidate the status of Adidas. And the main mission of the clothing shop is to provide a place and service for local consumers to get high quality sport clothing and make their life more convenient. The feasibility research report contains the 4P analysis, that is, the product, price, promotion, place are analyzed. The strength and competition of the clothing shop are also researched. 2.0 Products and Services 2.1 Products and services description This clothing shop sells Adidas brand sports clothing, offers an excellent environment and service for consumers, and shows a kind of taste and experience an emotion. The aim of the clothing shop is to make it become a good place for leisure shopping. 2.2 Resources and technology Clothing store is a demanding profession requires the size and grade of the industry, products and services, after all, it is a high consumption, the consumer must care the fully reflection of their consumption value. To achieve this, there is a very high demand on the resources of investors, and technology. Joining the brand make it access to sufficient resources, advanced equipment and technology, and importantly, on the other hand, it can avoid a lot of risks. 2.3 Future products and services plans With the shops development and changes in the surrounding environment, the products and services will continue to improve, including more comprehensive new products, better quality and personalized service. The shop will continuously improve under the support of Adidas brand and its own efforts. 3.0 Project Site and Construction Conditions 3.1 Project site The city is a popular one which hosts international and domestic sporting events, such as cricket, South Australia Golf championship, classic car race, bike race. The site is determined at Victoria Square, a famous commercial circle. A survey  [1]  conducted there indicates that people here are willing to buy the product of Adidas, and the percentage of items are shown in figure 1. Figure 1 Market survey 3.2 Construction conditions Economic conditions Adelaides economy is mainly manufacturing, military and research. The city has large manufacturing, military and research area. Holden car, Mitsubishi Group has manufacturing plants in Adelaide, the city also has health equipment and electronic components plant. About half of the cars produced in Australia come from Adelaide  [2]  . Australias largest oil company and the famous brewery is located in Adelaide, its per capita economic growth is higher than the Australian average  [3]  . Adelaide is Australias major arsenal, 70% military industrial company in Australia is located in Adelaide, and its gross domestic product reaches 10 billion Australian dollars. Natural conditions Adelaide is a Mediterranean climate, warm and rainy in winter and drying in summer  [4]  . Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Average high temperature °C ( °F) 27.8 (82) 28.4 (83.1) 25.4 (77.7) 22.0 (71.6) 18.7 (65.7) 15.8 (60.4) 15.0 (59) 16.0 (60.8) 18.1 (64.6) 20.9 (69.6) 23.7 (74.7) 26.0 (78.8) Average low temperature  °C ( °F) 15.9 (60.6) 16.2 (61.2) 14.5 (58.1) 11.7 (53.1) 9.7 (49.5) 7.6 (45.7) 7.1 (44.8) 7.7 (45.9) 9.0 (48.2) 10.7 (51.3) 12.8 (55) 14.7 (58.5) Precipitation mm (inch) 20.0 (0.787) 18.3 (0.72) 24.3 (0.957) 36.8 (1.449) 48.9 (1.925) 56.9 (2.24) 64.2 (2.528) 52.5 (2.067) 49.9 (1.965) 43.5 (1.713) 22.7 (0.894) 24.6 (0.969) Figure 2 Average data of Adelaide airport Traffic conditions Adelaide is the important traffic intersection of Australias east-west and north-south direction. The road is always better than many other Australian cities. Adelaides with a name of 20-minute city because the car can reach from the suburbs to the city center within 20 minutes  [5]  . Adelaide International Airport is Australias newest and most advanced airport. 3.3 Supplies Consumption of major materials According to the project scale, this project needs all kinds of garments, including T-shirts, jackets, shorts, pants, shoes, etc., and the annual consumption is shown in the following table. No. Material Unit Annual consumption 1 T-shirts piece 30910 2 Jackets piece 79080 3 Shorts pair 20450 4 Pants pair 54770 5 Shoes pair 76920 Figure 3 Annual consumption of materials (2) Sources of major materials All kinds of raw and auxiliary materials required for the project are internal stock, and hence the supply is adequate. (3) Quality requirment of major materials All the materials needed in the shop is checked according the corresponding standard, and satisfies the need of consumers to assure the product quality. 3.4 Logistics The company is equipped with sufficient storage space, which can be used to solve the storage needs of finished and packing materials  [6]  . Raw materials in warehouse are divided by batch, and establish a strict regime of materials distribution to prevent mixing batches. Transport system adopts advanced third party logistics, which is quick, convenient and cost-saving. 4.0 Investment Objectives and Tasks 4.1 Investment objective Become a leading sports clothing brand in the region, and make it a fashion consumer sites. 3 years to recover the total investment cost, and gradually start making profits. 4.2 Investment tasks (1) Stabilize capital, implement an ideal investment channels for investors and provide them with a stable and reasonable income. (2) Successfully complete the construction and development of brand stores, and gradually make the capital investment to generate income. (3) Use the existing sites to upgrade Adidas brand, increase brand awareness and customer amount to achieve mutually profit. 4.3 The key to success (1) The good cooperation of investors and owners, and the best combination advantages of both resources. (2) Sufficient market demand, active and effective campaign. (3) The location of the grasp. Clothing store is in the address of beauty and in a business circle. 5.0 The Market Analysis 5.1 The market demand Our consumer demand is still relatively ample. On the one hand, there are stable and old customers, on the other hand, there are beautiful natural and relatively stable business district. (1) Stability of the old client resources. This part of the consumer is the natural client resources after the completion of the new brand stores. When they face more appeal, better products and services of the brand stores, they will continually become the loyal customers of the brand. The residential area Enterprises in the region Schools in the region In general, the target consumers are sufficient, but here there is a lack of brand appeal on the scale of the clothing store, we shop here just to fill this market gap. 5.2 Industry development trends (1) The clothing market is growing rapidly  [7]  , and it has become a major trend of consumption, the market early training has ended. (2) The taste of the consumer is becoming increasingly high. The culture charm is the charm of the market. Consumers are starting to cognitive clothing brand, clothing style and know how to enjoy the fun. The rapid development of sports clothing market is closely related to the natural sport interest of the consumer. (3) Education level, family income and frequency of exercise show a significant positive correlation  [8]  . (4) The competition within the industry and associated industries is increasingly intense. There are more and more clothing stores in the city. Meanwhile, other brands of sports clothing are all relevant alternatives. 5.3 Competition comparisons (1) Indirect competition with the strong brand stores. Currently the city has more than 10 sports clothing stores, of which the largest competitor of Adidas, Nike, 4. Peripheral consumer source will be diverted by these indirect competitors. (2) Direct competitors. Some of the other sports clothing in the region is the direct competitors. Their size is not too large, but they have some characteristics, price and quality are good. These stores still have a certain competition. However, peer competition situation, mainly small-scale, has a certain personality clothing store in the region, is good for us. In contrast, our shop has a considerable advantage on brand appeal, management level, product and service quality, scale and finance. The fashion and taste of the clothing shop determine its share of emotional consumption, and consumers are very concerned about the brand and grade factors. This can also explain the large number of consumers prefer to find clothing store downtown. 6.0 Promotion Strategy 6.1 Market strategy Target market The target market contains the regions consumers in the business district, with monthly income of 1,000 $A. The majority are well-educated, and they pursuit fashion and taste, mainly youngster and the middle-aged. Marketing planning Utilize the brand and resources advantages, and establish rapidly the popularity and reputation of Adidas to solid the old consumer source, getting back the consumers attracted by strong brand stores and local specialty shops. Although the Adidas brand is strong, this region is likely to have other strong brand clothing store in the future. Therefore, we must use all the opportunities and resources now, making a good service marketing and more personalized service, build our own brand to consolidate the customer loyalty. 6.2 Promotion The most important thing is to make the shop known by the consumers nearby as quickly as possible. (1) Advertising For district residents, deliver fine single-page advertisement and small gifts, one-page form can also be made the form of discount vouchers. (2) Event marketing Hold student party and reading activities. Contact the Universitys student union and several important regional organizations; hold a number of salon parties and school activities and this is helpful in raising quality to attract students and young consumers. When the time is ripe, we can also organize an activity with movement and life as the theme of the essay writing. (3) Service marketing Besides brand identity, service for clothing is also important to consumers. To do this, more personalized service is needed. Establish membership card. Members name is printed on the card, such as bank card. Membership card discount rate was not high, such as 9.8 fold. However, on the one hand, it can give consumers a sense of respectability, and on the other hand, it is easy for attendant to call the consumers. Especially if consumers and other people are together, and the attendants can publicly call him (her) Mr. (Miss), they will feel they are respected and welcomed. (4) Personalized service Put some promotional materials in the table, and the content of which is about the knowledge and stories of the Adidas. On the one hand, it can enhance the taste and the atmosphere, and on the other hand, it can increase the favorable impression of consumers. For many consumers who come together, we can explain the brand with specialized person. If they are interested, you can introduce the brand name, the origin and other relevant knowledge to them. 7.0 Financial Plan 7.1 Financial overview No. Name Amount ($A) 1 Rent 650,000 / year 2 Joining fees 200 00/ year 3 Decoration and reconstruction 60 000 4 Salaries 40,000 / month 5 Water and electricity 10,000 / month 6 Other costs 10,000 / month 7 Other charges 50 000 Figure 4 Financial overview 7.2 Device configuration No. Device type Name Quantity Unit price ($A) Total price ($A) 1 Business equipment Container 2 1200 2400 2 TV 2 6000 12000 3 Computer 2 4000 8000 4 Sofa 3 5000 15000 5 Cash register 2 3000 6000 6 Office Equipment Air conditioner 3 3000 9000 7 telephone 2 200 400 8 Fax machine 1 1500 1500 9 Printer 1 1500 1500 Total 18 55880 Figure 5 Device configuration expenditure