CTC Atherton: Business Plan and Financial Projections for Retail Store

The assignment is a business plan report for CTC Atherton, a tobacco retail store. It outlines the business's structure, which includes the sale of tobacco products from major companies like Imperial Tobacco, British American Tobacco, and Philip Morris Limited, along with other services such as key cutting and drinks. The report details the target market, which is all individuals over 18, and emphasizes competitive pricing and excellent customer service as key strategies. CTC Atherton plans to use a narrow margin of 6.5% to attract customers and increase sales volume, while also leveraging promotions from tobacco providers. The financial plan, including start-up costs, profit and loss statements, balance sheets, and cash flow projections, is analyzed to assess financial goals and risk management. The report also covers staffing duties and management strategies, aiming to establish a successful retail store in Atherton town by addressing market issues such as cost and brand availability.

Executive Summary
CTC is a tobacco retail franchise which deals with the purchase and sale of
tobacco products sourced from three main tobacco companies of Australia-
Imperial Tobacco, British American Tobacco and Philip Morris Limited. The
Atherton store will not only sells tobacco but also other services such as
gifts, key cutting engraving and cold drinks for the customers to have a
variety of products.
The stores such as TSG, Coles, Woolworths offering similar products are
limited in brands of tobacco and prices to offer the customer. CTC plans to
meet the needs of the customers through a variety of brands and a
competitive price. The company will use a pricing strategy and aims at
providing outstanding customer service to ensure customer retention. The
structure of the company is retail frame offering final products to
customers. Everyone over 18 years is a potential customer to our tobacco
products and the strategy for income would be focusing on satisfying a
necessity on a convenient way with good customer service and offering
good prices for quality goods. Good customer service will also apply to other
services such as key cutting, drinks, engraving and gifts for the continuous
relationship with customers which ensures retention and income
generation.
The company plans to use a pricing strategy to achieve its sales. Unlike the
competitors who use a margin of 7 to 9 %, CTC will use a narrow margin of
6.5% markup aiming at high sales volumes for profit for units sold. The
company will not do promotions, but use the promotions provided by the
main providers; British American Tobacco, Imperial Tobacco and Phillip
Morris to reach the customers and to adjust the prices for the products to
be approachable. The company will also provide accessories for tobacco
consumption such as pipes, paper and filters readily accessible to
customers. For other services, the company plans on having narrow profit

margins for customers to use more than one service when in the store. The
company will be located in the main street town of Atherton and will
provide parking possibility which is important and convenient to customers.
The location is also suitable for large number smokers living in the town.
The financial plan for CTC Atherton is based on the projected analysis of
start-up costs, profit and loss statement, balance sheet and cash flows. A
comprehensive analysis of financial plan for CTC Atherton will serve as the
basis for risk management and long-term investment planning. The
projected financial statements are for the first three financial years of the
business. The financial plan analysis is based on some known metrics along
with estimates of productivity and growth to determine whether the
financial goals can be satisfied or not. The output of these statements gives
an estimate of net profit and growth attained by the business by
maintaining the optimal utilisation of resources over the span of next three
years.
The staffing duties will be done at the head office and will ensure the
training and development done to keep them abreast of the system of
operation of the company and also remain motivated to work. The
management of the store will be introduced to the general functioning of
the firm and better management and operational strategies to adopt in the
retail store. The CTC Company plans to implement the plan by launching a
retail store in Atherton town. The pricing strategy will change the market
for the tobacco products in the town and will address some of the key
problems such as cost and brands available in the market.