Proiecte economice în comerț

1. Why this business? (personal opinion)

We have chosen this business first of all because everybody is using shoes like a necessity and then like an accessory because people are looking after fashion, unique and high quality shoes. This is exactly what we sell, trying to be as close as possible to our clients offering to them something more and also because this business is in continue development.

“Unique” is a trading company founded in June 2010 with a capital of 500.000 RON brought as contribution in cash and contribution in kind by the four partners. Two of them contribute with two locations and the other two, in cash. We have three stores open to the public, a warehouse, headquarters and a website.

Field of activity: retail of footwear and leather goods, CAEN code 5243.

2. Barriers to entry/Barriers to exit:

Barriers to entry:

Legislative (patents, permits, licenses);

Investment capital (higher initial costs to obtain all the necessary documents);

Geographical;

Competitive (the shoes market has a lot of competitors).

Another barrier could be unqualified personal but not in our case because we will offer them periodically training after our policies.

Barriers to exit:

a) economical:

- difficulty in recovering our investment in terms of physical assets: LCDs, computers, cash marked, furniture;

- impossibility to sale the last stock

b) emotional:

- as this was our first business, we would do anything to keep it on the market but the circumstances aren’t on our side.

3. Market segmentation

Demographic market segmentation is done according to the following variables, as follows:

Sex: men and women;

Age: as we are addressing to men and women, including children, we don’t have age limit;

Income: we are addressing to those who has middle/high income (over 1500 RON);

Occupation: we are addressing to all kind of people so the occupation doesn’t matter.

Geographic segmentation

Environment: rural and urban in county Iasi.

Socio-cultural segmentation

The preferences can be different between urban and rural people because of the education, culture, behavior, personality and social class.

4. Objective

Our first objective is increasing sales by 40% in Iasi region between 20 November 2011- 1 February2011.

The next objective is to lose the shoes we have in stock from the last season and in this way we will recover our investment 100% between 1December-15December.

Another objective is to increase public awareness with 30% by advertising campaigns for the period 1 November 2011-20 November 2011.

Then, our objective is to increase our awareness and sales on our website and on other fashion sites with 30% in 1 October 2011- 1 January 2012, 10% in each month. Also we will have a partnership with other websites where we will promote each other’s products.

5. Total cost/marginal cost

After we have seen our objective, we are simulating one situation in our shop: we want to see which is total cost if we are selling 1000 pairs of shoes for all the category (children, men and women).

Products Quantity Price inclusive TVA (RON) Total price (RON)

Pumps 40 120 4800

Boots 130 130 16900

Winter shoes 150 145 21750

High shoes 200 180 36000

Insulated 170 150 25500

Girls boots 150 120 18000

Boys boots 160 110 17600

TOTAL 1000 140550

Variable costs of acquisition: 150.000 (1000)

Fixed costs of acquisition: 140.550

Fixed costs of marketing: 1500

Total intern costs: (150.000/1000) x 500 + (140.550/1000) x 500 + 1500 = 146.775