Comprehensive Business Plan for Melbourne Sports: Analysis

This document presents a comprehensive business plan for Melbourne Sports, a proposed sports equipment retailer in Melbourne, Australia. The plan includes an executive summary, business philosophy, and detailed product descriptions of sports apparel, shoes, and equipment. It incorporates extensive market research, including secondary and primary research, competitor analysis, and market segment analysis, focusing on the Bourke Street Mall location. The organizational and personnel plan outlines the adoption of a sole proprietorship. The financial plan covers income statements and break-even analysis, while also detailing the target market and pricing strategies. The plan also includes self-analysis, assessing the entrepreneur's skills and providing appendices with supporting data and questionnaires. The business aims to provide quality and sustainable sports accessories, adopting a 'Customer First' philosophy.

BUSINESS PLAN

Table of Contents
INTRODUCTION...........................................................................................................................1
Executive Summary....................................................................................................................1
Business Philosophy/ Mission Statement....................................................................................2
Product Description.....................................................................................................................2
Self Analysis...............................................................................................................................3
MARKETING RESEARCH............................................................................................................3
Secondary Research....................................................................................................................3
Primary Research........................................................................................................................4
Competition.................................................................................................................................4
Market Segment Analysis...........................................................................................................5
Analysis Of Potential Location...................................................................................................5
ORGANISATION AND PERSONNEL PLAN..............................................................................5
MARKETING PLAN......................................................................................................................7
Proposed products or service plan:.............................................................................................7
Proposed Pricing Policy: Describe your pricing policy:.............................................................7
Proposed Promotional Plan.........................................................................................................8
Place............................................................................................................................................8
FINANCIAL PLAN.........................................................................................................................8
Covered in Appendix 4...............................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
APPENDICES...............................................................................................................................10
Appendix 1................................................................................................................................10
...................................................................................................................................................10
Appendix 2................................................................................................................................11
Appendix 3................................................................................................................................13
Appendix 4................................................................................................................................14

INTRODUCTION
Business Plan refers to a detailed outlay which includes a detailed structure and all the
necessary steps which are essential to develop business organisation. Furthermore, it is a
necessary step which is essential in order to determine several standards for the new business as
well as the offering (Burns, P. and Dewhurst, J. eds., 2016).
Executive Summary
The following report is based on developing sports organisation by the name of
Melbourne Sports which would be dealing in a variety of sports related equipments. The shop
would be set up at Bourke Street Mall in Melbourne, Australia.
The business plan required a detailed product description and self analysis. Melbourne
Sports would be dealing in three types of products, mainly, sports apparels, sport shoes as well as
sport equipments related to sports like cricket, football, tennis and cycling. Furthermore,
entrepreneur of the company possess various skills like digital, communication as well as critical
thinking skills.
Further, the business plan required extensive marketing research. For this, secondary and
primary research were crucial elements chosen. Additionally, competitor analysis, along with
determination of market segments and analysis of location was also performed.
The report also required appropriate personnel plan as well as marketing plan to be
undertaken. To attain this, each personnel required by the company was determined, along with
effective marketing plan.
Lastly, financial plan of Melbourne Sports is required to be made for which, income
statement was developed along with necessary break even analysis (Thébaud, S., 2015).
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Business Philosophy/ Mission Statement
Melbourne Sports would be a new-age sports shop which would provide top quality and
sustainable sports accessories and tools to its customers. It would be a one stop shop for all sport-
related accessories and apparels to its customers in the city (Ibidunni, A.S., Peter, F. and Ogbari,
M., 2017). It would be working on the philosophy on providing the latest and sustainable
products to its customers which could sustain for long term without wearing and tearing despite
extensive usage. Furthermore, a “Customer First” philosophy would be adopted by the business,
where each customer would get personalised attention and their needs would be effectively
fulfilled.
The mission statement of the company would be, “Working to create a healthier life”,
which would be reflecting its goals and would help in communicating its agenda to the public.
Product Description
Melbourne Shop would be dealing in a range of different products for use such as clothes,
shoes and sport equipments. All these products will have several benefits for its customers within
the city. As an example, the range of clothes would be made using cotton, polyester, spandex and
nylon which would benefit the customers while playing sports or during workout. The very first
aspect in which apparels by Melbourne Sports would benefit the customers is because these
fabrics used in these products would enhance breathability which is essential for sporting
activities. Another effective benefit of these clothes to customers is that it would protect the
customers from environment, which is an essential aspect in case the customers work out in
summers. As for shoes, utmost comfort, flexibility, durability as well as agility would be
provided by the offerings by Melbourne Sports. Furthermore, all the sporting equipments related
to various sports such as cricket, football, tennis and cycling would be provided by this company.
All these equipments would be successful in the market as individuals are inclining more
towards fitness lately. Moreover, there are several forecasts which indicates this industry to grow
to almost $2.4 billion by 2023 (AUSTRALIAN FITNESS INDUSTRY REVENUES TO GROW TO
$2.4 BILLION BY 2022/23, 2019). Additionally, there is a need for better products which provide
quality, cost as well as adequate sustainability. Thus, these products could survive well in the
market and be successful (Rosati, U. and Conti, S., 2016).
Appendix 3 covers the break even analysis of the whole business plan. According to the
same, $95 is the standard minimum pricing for each of its three offerings. Through this analysis,
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it is justified that 1500 units are the minimum desired units of each product to be sold in order to
cover the fixed cost.
Self Analysis
It is crucial to perform self analysis in order to ensure that all the necessary skills are
necessary to set up, establish and manage a business organisation. For Melbourne Sports, I
possess necessary skills and appropriate education to start this business and drive it towards
growth. During my education, I have been quite creative in bringing in new ideas and innovative
methods to study and professionally work. I possess effective teamwork skills which is essential
to manage the team within a company. Furthermore, my other skills include appropriate digital
and communication skills which would allow me in conducting my business activities with
utmost ease and convenience. However, I am working on developing my critical thinking skills
that would assist my decisions taken in regards with Melbourne Sports (Kusumaningrum, I. and
Hidayat, H., 2016).
MARKETING RESEARCH
Secondary Research
This type of research is associated with acquiring secondary information which has
already been obtained by another researcher. There are several aspects for which this type of
research is necessary. These aspects are mentioned below: Geographical Data: This data is related to the population distribution within the country
in which the shop would be established. It is essential in order to establish the shop in an
appropriately populated area which would further enhance the changes of desired change
and customer preferences. Out of all the city, which has a population over 5 million, its
population is most in the North West Corner, Furthermore, the population densities in
that area are 20 per hectare in that area, which makes it quite prominent for Melbourne
Sports. Appendix 1 contains the display of the population density within the city as well
as the North West region.
 Demographical Data: Another aspect is related to the demographics which are
associated with certain aspects like Gender, age, income, marital status, family sizes, etc.
These are essential for the new business in terms of establishment the shop in a way
which contributes to its utmost effectiveness. As for Melbourne, this city might overtake
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Sydney in context with becoming the biggest city in Australia. The city accommodate
almost 2 million households, which is likely to increase in the future. Furthermore, as for
age, the median age of this city is 36.with near about 40% population of the city aged
between 25-49 years of age. As for education and culture, the city is a multicultural and
well-educated society, where majority of population lives in single family household. In
addition to this, 27.5% of the labour force of the city is degree qualified and more than
70% of population have school qualifications. As for income, weekly income median of
per family is around $1,542, while 32% of households earn weekly income around $300-
$599 (Greater Melbourne Demographics, 2019). Appendix 2 includes the age
distribution, income profile as well as education within the nation.
Primary Research
This type of research is appropriately based upon first hand information carried out for a
specific purpose. For Melbourne Sports, the first hand information is gathered in relation to
effectively analyse the marketplace and customer preferences. A sample questionnaire is
attached in Appendix 3 including all the relevant questions related to the firm and its products.
Competition
It is essential for a business to analyse their competitors with respect to appropriately
analyse their strategies and develop new tactics to gain a competitive edge. There are various
competitors of Melbourne Sports which are mentioned below:
 Direct Competitors: These are the competitors which directly affect the business. One of
the biggest competitors of Melbourne Sports is Decathlon Melbourne. It is a global
organisation which has an effective branch in the city and it deals a wide range of sport
related products at a very low pricing. It is one of the most preferred companies in the
city and could be a direct competition for the company (Gabler, C.B., and et. al., 2017).
 Indirect Competitors: These competitors are the ones which would indirectly have an
impact on the operations of the company and sales of their products. Online businesses
like Amazon is one indirect competitor which provides range of sport related products to
customers at their home conveniently.
However, Melbourne Sports is planning to provide personalised services to customers
along with a wide range of different products which would help individuals in performing their
sports activities effectively. Further, with such range, customers would appropriately choose
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their products more effectively. These aspects would help the firm in gathering an effective
market position and competitive edge.
Market Segment Analysis
One of the major aspects of a business plan is choosing the target market. It requires the
firm to effectively divide the market into certain segments which is essential for choosing the
right target customers for the company. As per the secondary data above, the most prominent
type of target market for the company is general public of Melbourne, who belong to the Urban
Areas of the city, preferably North-west region of the city as the company would be having a
physical store along with online business. Moreover, the age range of these customers would be
between 18-45 years, who are well educated and have income around $650. As for behavioural
segments, the company would target customers who are effectively engaged in physical and
sports activities and are habitual of using sport equipments and apparels.
Analysis Of Potential Location
Location of the business is one of the most effective aspect which influences its sales and
growth within the market. For Melbourne Sports, the location which is chosen is Bourke Street
Mall. A shop within the mall is planned to be rented. The standard operating hours of the
business would be from 10:00 a.m. To 8:00 p.m. The mall has appropriate basement parking
available for the staff and customers visiting the mall. However, the staff has a separate parking
within the infrastructure. There is an effective public transit available to people visiting the mall.
Staff as well as customers would be having access to subways as well as bus stations located
nearby the mall. The area is quite safe and there are few small shops of sport accessories within
the mall, which might appropriately compliment the business by referring their customers
towards the company.
ORGANISATION AND PERSONNEL PLAN
This organisational and personnel plan is all about Melbourne Sports which deals in
Sports Apparel, Sports wears and Sports Equipment mainly related to Cricket, Swimming,
Tennis and Football. Ownership Choices:
For Melbourne Sports in order to carry and perform business activities effectively sole
proprietorship business would be adopted. It is a type of business which is owned and operated
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wholly by an individual and there is no legal distinction between the owner and its business. In
this type of business individual is wholly responsible for paying off the debts and the liabilities.
This type of ownership has been selected as the proprietor of the respective company will have
full control on the entire business and doesn't have to share the profits as the information can be
kept confidential. This assist the proprietor to derive maximum benefits for its business and the
main purpose for choosing the sole proprietorship business is that individual would be not bound
to any ethical laws and regulation and could perform the business activities in a freely manner.
Because of such advantages sole proprietorship business will be suitable for Melbourne Sports. Personnel Needs:
For Melbourne Sports in order to perform its business activities in a effective manner,
they requires 1 manager, three sales person, one accountant so that they can perform the work in
the respective company in a appropriate manner. Sales person are required to effectively manage
the sales and provides information to the customer regarding sports apparels, sports shoes and
sports equipments. Manager is required to effectively manage all the task within the business and
provides necessary information and guidance to the salesman to perform the task in a proper
manner and accountant is needed to perform all its finance work. This will assist the Melbourne
to conduct its Sole proprietorship business in a effective manner. Hiring Strategy:
In order to hire the respective personnel within the business Melboune Sports could hire
the employees from his family and friends as it is a sole proprietorship business and needs to
hire employees respective business need to apply for employee Identification number and will
require few minutes to perform the application process (Morgan, E., 2015). With this employees
can be hired online at IRS Website. In order to recruit account salary will be provided $ 400 a
month will be provided to accountant and sales man will be offered a salary range of $, 150 and
manager will be provided a salary range of $,500. This would be the attractive salary so as to
recruit the staff in a appropriate manner.
MARKETING PLAN
Proposed products or service plan:
Melbourne sports is new upcoming business in region of Melbourne. This business
venture has been strategised to sell sports based accessories, which will serve customer's a
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greater and wide values as per their income or affordability factors. Business venture is centric
for customer's who used to purchase sports based products or accessories with sense of their
passion. In initial time, Northwest region has been decided as first preferences, but yet location
analysis is needs to be taken care to built business competencies. Melbourne sports is focused on
their products which majorly comprises of sports based accessories such as shoes, apparel and
equipments namely such as football, cricket, tennis etc. This new venture is also used to be focus
on fitness consideration or measurements.
Proposed Pricing Policy: Describe your pricing policy:
Melbourne Sports will use price skimming as their major pricing policies, which is high
centric towards increase sales of new products or services. In this pricing, products are used to be
sell at high rates, because of overcoming initial cost or expenses (Rubin, T.H., Aas, T.H. and
Stead, A., 2015). This pricing policy is suitable for Melbourne sport to overcome their expenses
which they will incur in starting operation of the business.
 Melbourne sports have decided to sell all three category of product with add of 15
additional pricing to variable cost of $55 dollars. This 15 percent add-on will be charged
for initial quarters of business to cover cost, then it will be deducts by 3.5 percent and
will remain fix, until any new policy.
 NBA and Grey Nicholls will be major competitors, as they are highly known for their
quality and renowned sports products. Also, both will remain in future, because of
growing customer's of two.
 Melbourne Sports will offer introductory offers to selected customer's, it means that they
will offers discounts to first few customer to enhance sell at a greater margin.
 In this business, for initial period profit will be drive on volume basis and then after
recovering of cost, chances for prestige appeal will take place.
Proposed Promotional Plan Personal Promotion: Melbourne sports will go for personal selling, as this is a premium
which will be promoted with help of fitness engagement to customer. Personal selling
with fitness role is a productive option to be undertake to led accessories selling on major
basis.
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 Non Personal Promotion: For this, Melbourne sports will do launch event, advertising
through television and newspaper based advertising to customer attention for longer
period of time. With help of health advertising, this will be helpful to create level of
enthusiasm among customers.
Place
1) Bourke street mall will be preferable location for Melbourne sports to operate their
business operation, as it is a big mall with higher customer reach and domain. This mall
is located in middle west of Melbourne city.
2) Distribution plan: Melbourne sports will adapt for in-store selling and online both. This
has been taken in accordance with increased customers base on online platforms.
FINANCIAL PLAN
Covered in Appendix 4
CONCLUSION
Thus, it is concluded that business plan is essential in order to develop a roadmap of
development of a business. Product description along with self analysis helps in analysing and
stating facts about the offering and competence of individual willing to set up the firm. Market
research is quite effective in relation to appropriately research the whole environment which
could be favourable for the company. Personnel plan as well as marketing plan allows the new
business to develop a work frame regarding the personnel and appropriate marketing plan to
communicate the offering to the customers. Lastly, financial plan help in effectively laying down
projections like income statements and break even analysis.
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REFERENCES
Books and Journals
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Gabler, C.B., and et. al., 2017. Developing an environmentally sustainable business plan: An
international B2B case study. Corporate Social Responsibility and Environmental
Management. 24(4). pp.261-272.
Ibidunni, A.S., Peter, F. and Ogbari, M., 2017. ENTREPRENEURSHIP EDUCATOR'S
COMPETENCEON UNIVERSITY STUDENTS’COMMITMENT TO LEARNING
AND BUSINESS PLAN WRITING. Academy of Strategic Management Journal. 16(2).
pp.1-10.
Kusumaningrum, I. and Hidayat, H., 2016. Learning Outcomes in Vocational Education: A
Business Plan Development by Production-Based Learning Model Approach.
International Journal of Environmental and Science Education. 11(18). pp.11917-
11930.
Morgan, E., 2015. ‘Plan A’: Analysing business model innovation for sustainable consumption
in mass-market clothes retailing. Journal of Corporate Citizenship. (57). pp.73-98.
Rosati, U. and Conti, S., 2016. What is a smart city project? An urban model or a corporate
business plan?. Procedia-Social and Behavioral Sciences. 223. pp.968-973.
Rubin, T.H., Aas, T.H. and Stead, A., 2015. Knowledge flow in technological business
incubators: evidence from Australia and Israel. Technovation. 41. pp.11-24.
Thébaud, S., 2015. Business as plan B: Institutional foundations of gender inequality in
entrepreneurship across 24 industrialized countries. Administrative Science Quarterly.
60(4). pp.671-711.
Online
AUSTRALIAN FITNESS INDUSTRY REVENUES TO GROW TO $2.4 BILLION BY 2022/23.
2019. [Online] Available Through: <https://www.ausleisure.com.au/news/australian-
fitness-industry-revenues-to-grow-to-2.4-billion-by-2022-23/>
Greater Melbourne Demographics. 2019. [Online] Available Through:
<http://www.invest.vic.gov.au/resources/statistics/greater-melbourne-demographics>
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APPENDICES
Appendix 1
Illustration 1: Population Density in Melbourne
Illustration 2: Population Density in Northwest Region of Melbourne
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