Athlete's Warehouse. Essay

1337 words - 5 pages

Executive SummaryColin's unemployment status has caused him to consider opening up his own 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 being unemployed, Colin needs to begin earning an income to live. To do so he needs to improve his projected sales so that his net income would be sufficient to live on and to be able to pay back Ed's investment in the business.The most feasible solution to Colin's situation is opening up the business downtown at the Great Eastern Building. This location produces a higher net income and a lower break even point than the mall. Although the net income starts out quite low, once the business is established as a quality store with good merchandise and excellent customer service, customers loyal to them will return to their store when they have a need or want that they can fill.Before the business is up and running, Colin must determine how he will integrate the four aspects of the marketing mix to satisfy his target market . He will need to decide how he will promote his store to the local citizens in the best way possible, while giving them what they want and need on good quality products at affordable, competitive prices.Statement of ProblemGiven that Colin is in an unfortunate situation, his primary concern now is deciding whether or not 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 currently being out of work, Colin is looking to change his unemployed status. Colin must first consider his target market and then take into account the marketing mix when deciding where to locate and how he can make the business profitable. This is a two-step process that is the main focus of any marketing manager's job.Analysis of SituationDue to Colin's unfortunate state of affairs and the situation of his last business, he must immediately find 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 make his business successful.Many factors must be taken 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 similar nature. Colin should construct a projected income statement and break even analysis to compare the two locations to find out which site is more profitable. Furthermore, to avoid his previous cash flow problem he needs to make sure his inventory...

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