Detailed Business Plan: New Generation Retro Game Zone Online Retail

This business plan details the establishment of the New Generation Retro Game Zone, an online retail venture catering to children's toys, games, books, and software. The plan includes a comprehensive market analysis, focusing on the UK's consumer trends and demographics, utilizing Porter's Five Forces, SWOT, and PESTLE analyses to assess the viability and competitive landscape. The company aims to offer a wide product portfolio, including educational software and unique features like 360-degree product views, to attract a broad customer base, including children, parents, and educational institutions. It outlines the company's mission, vision, aims, and values, along with detailed marketing strategies, operational plans, financial projections, and risk assessments. The business will be started by putting personal capital of owner and al the legal and regulatory aspects will be followed. The plan also addresses start-up expenses, capitalization, and potential challenges, concluding with a vision for long-term market share growth and customer loyalty. The business is thoroughly online where the customers will order the products and company will send a order placed ID to them. The products of company will be shown with a proper specification and pricing.

(Online Business for Children retail products)

TABLE OF CONTENTS
EXECUTIVE SUMMARY 1
COMPANY DESCRIPTION 1
PRODUCTS AND SERVICES 5
MARKETING PLAN 5
OPERATIONAL AND RESOURCE PLAN 14
PERSONAL FINANCIAL STATEMENT 16
START-UP EXPENSES AND CAPITALIZATION17
FINANCIAL PLAN 18
LIMITATIONS/ RISK ANALYSIS 21
CONCLUSION 22
REFERENCES 23
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LIST OF FIGURES
Figure 1: Porter five forces model.................................................................................................10
Figure 2: Team of new venture......................................................................................................15

EXECUTIVE SUMMARY
With a rapidly ageing population and wider changes arise in the market, UK customers
shopping habit is also influenced. In order to meet the population’s changing needs, enterprises
are concentrating towards delivering of quality of retail products to their customers at affordable
price. In the context of meeting expectation of customers, new online business start-up will be
set-up to deliver online retail products such as toys, games, books, equipment’s and software etc.
to children in a proper manner. It will provide facility of great selection of toys for kids at
amazing prices. Looking at the present era where children are surrounding with latest
technologies, toys, games and books. Their positive contribution on day to day life of children
can be seen in different terms such as boosting memory, developing cognitive skills, foster social
interaction, and better able to react and change tactics etc. In the present case, new generation
retro game zone (hypothetical company) was taken which offers toys, games, books, equipment’s
and software for children at affordable price. The business will be started by putting personal
capital of owner and al the legal and regulatory aspects will be followed. It will provide
opportunity of an easy and effective way to reach out to millions of potential buyers within
stipulated time. From the sales projection made it is predicted that online sales of company is
going to increase by 10% in a year. Product, market and industry feasibility were conducted by
using porter, SWOT and PESTLE models. It can be said that new business is viable and helps in
increasing market share in long term aspects effectively.
COMPANY DESCRIPTION
For the present case scenario, new generation retro game zone (hypothetical company) has
been taken which offers toys, games, books, equipment’s and software for children at affordable
price. The main business idea behind opening online retail for children is to deliver quality of
toys, software and many more products to them at lucrative prices. The current business plan has
been prepared by considering some unique ideas such as 360 degree rotation of products at each
angle, educational software and games and wide product portfolio to attract wider population in a
significant manner. There are several online retailers present in UK market and offer varieties of
products and services (Online Retailing: Britain, Europe, US and Canada , 2015). But they are
lacking somewhere to maintain their logistics and meeting needs of each age group range of
consumers effectively. Business owner can promote its products and services through creating
awareness among community, quickly respond to client request and maintain quality and
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reasonable prices while doing business. After getting success in online retail store and for
meeting the specific needs of our clientele, mobile apps can be launched.
Mission: The main mission of the new generation retro game zone is to offer toys, games, books,
equipment’s and software for children at affordable price. Business plan has been made by
considering some unique ideas such as 360 degree rotation of products at each angle, educational
software and games and wide product portfolio to attract wider population in a significant
manner.
Vision: The main vision of business plan is to promote out products through emerging as a
market leader in online retail gaming segment.
Aim and objectives: The main aim of the business is to open a online store for selling products
such as Toys, Games, books, equipment’s, software etc. that are used by children.
 To investigate current market trends that can influence business idea of new start-up
 To enhance customer shopping experience by providing order placing and tracking
convenience in website by effective use of advance technologies
 To explore positive contribution of gaming products on day to day life of children and
society
 To judge feasibility of online retail store in term of market, economic conditions and
profitability in modern arena
 To enhance sales and customer loyalty by creating positive image of products and
services in the minds of customers
Values of the company:
The main values of the company are their assets, stakeholders and their involvement. In
addition, customer loyalty, market situations, human capital and financial perspectives can
highly contribute in creating business values of new venture in cut throat competitive era. The
business will be started by putting personal capital of owner and al the legal and regulatory
aspects will be followed. Business will be set-up completely new.
Milestones and goals
 New venture games, toys and software products will positive contribute on day to day life
of children in terms of boosting memory, developing cognitive skills and foster their
social interaction in modern era.
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 Uniqueness in our product portfolio and different strategies such as 360 degree rotation
of products at each angle, educational software and games will help organization to
secure its position.
 Entire business idea will be implemented by effective use of human and finance capital.
Overview of current market trends and business idea
17.3 % population of UK under age of 15 years and 66.2% percentage of population
between 15 and 64 years old (UK population, 2015). Davidson (2015) stated that UK is only one
country in the world where parents spend more on toys and other retail products for their
children. From the statics, it is clear that in 2013, the average British shopper spent £508 on toys
and games for their children. On the other side, Australian consumers were spent £555 per child
in 2013. According to statement of E-bay, 12,623 frozen products sold in UK each day between
July and January in which demands of children games are high (Davidson, 2015).
Table 1: UK customers spending on children
(Source: Barford, 2011)
Children (In year) Average spending
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£9,491
1-4 £53,586
5-10 £56,856
11-17 £47,820
18-21 £43,094
Hence, on the basis of figures spending by customers for online retail stores for selling Toys,
Games, books, equipment’s and software are very high. Demographic profile of children and
parent spending on toys and games items are the positive indicators of the market which
encourages business owner to spend money in opening retail store for children in UK. Business plan
has been written on the basis of secondary data collection and literature review (Sambuchino, 2011).
The report has more than 80% of data comes from qualitative research in a significant manner. In the
context of materialize opportunities that exist at market place and meeting expectation of
customers effectively, the present venture will be established. Business and market opportunities
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can be grasped through creating awareness among community and maintaining balance between
quality and prices factors while doing business in a proper manner.
Potential customers
Our business idea is to open a online store for selling products that are used by children
such as Toys, Games, books, equipment’s, software etc. The consumers of our products will be
children ageing from 0-12 years. The target market of online children store will include four
major sections i.e. kids themselves, parents, Educational institutions for children of the upper
class and Self-teaching families. The products include the advances of technology in the teaching
sectors and will include the features of teaching aid. The middle and upper class families who are
willing to spend money on their children with the aim of improving learning and upbringing of
kids. The parents who are willing to buy toys and technical gadgets for their children will be the
major customers of proposed business. The parents who are having busy schedule and prefers to
have online shopping for affordable product will also be the customers of such products. The
play schools and lower secondary schools will also be counted as potential customers of this
proposed business. The company will provide services regarding information of products to the
customers and a strong customer online support (Sambuchino, 2011). The consumers of the
products will be divided in the different age group that are explained in following points.
Table 2: Targeted group
Age group Products
0-12 months Toys
1-2 years Toys and Games
3-5 years Games, books, equipment’s
6 years & older Games, books, equipment’s, software etc.
The business idea will be practically implemented after a strong market research that
can be conducted in UK market. The present business plan begins with market research in which
detail investigation about online industry, companies which offers similar types of services have
been considered. The specific need of children regarding toys and games will be identified so
that the best suitable products to theory needs can be satisfied. The financial resources will be
required to put in the online business so a in-depth investigation will be done in order to identify
the available financial resources and their relative cost. The business will be started by putting
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personal capital of owner and al the legal and regulatory aspects will be followed. The business
will be thoroughly online where the customers will order the products and company will send a
order placed ID to them. The products of company will be shown with a proper specification and
pricing. The website will be reinvents itself every three months of faster. In addition, more
emphasized will be given on developing logistics to deliver products and services to their
customers in a quick manner. A well maintain and user friendly website will be developed in
which all information about products, its prices, discount and return policies clearly mentioned.
Besides that, it provide feature of online game and other products facilities so that customers will
be able to book their order and providing feedback to company about their services. Further, in
this regard, talented and skilful employees will be recruited and training will be provided to them
to interact with customers (Bauknecht, Madria, and Pernul, 2000).
PRODUCTS AND SERVICES
The main uniqueness in this business idea is 360 degree rotation of products; video
training to run technology related gaming software, return policy and taking help of strong
logistic chains to deliver products to consumers in frequent manner. In addition, product
portfolio of enterprise will be developed by considering ethical business concept. This new retail
start-up will not sell abusive and other software which promotes violence and creates bad or
negative effect on life of kids. In addition technology aspects, in-house knowledge base team,
recruiting SQL™ server and ColdFusion™ programming expertise and team to handle website
and other online medium will be the major characteristics of our products and services. Despite
of that, free collect and click feature will provide on firm website to provide order placing
convenience to its clients in a proficient manner. Besides that, easy to use and quickly viewable
features of new start-up business will help in promoting business and meeting expectation of
children, parents, educational institutions and self-teaching families effectively. Hence,
emphasizing on product portfolio, making uniqueness in products, and build lucrative websites
will be important part of new start-up set-up idea. It will provide opportunity of an easy and
effective way to reach out to millions of potential buyers within stipulated time.
MARKETING PLAN
Marketing Plan
The most attractive feature of online retail store business plan is its marketing strategies and
plan.
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Market research: In the context of analysis overall online retail market store, secondary data
related to current trends and gaming and toy industry have been taken. With help of applying
PESTL, SWOT and Porter Five forces, external and internal factors have been identified
(Araujo, Finch and Kjellberg, 2010).
Market research
Situation analysis can be done in order to target the right customers and identifying the
entire market and competitors present in the market in a significant manner.
Macro and Micro analysis
For analysis macro market, PESTLE and SWOT Analysis have been applied. On the other side,
for analyzing entire industry, porter five forces model has been applied. These market analyse
techniques will help researcher to check viability of online retail business idea and increases
market share in long term aspects effectively.
Macro market:
 New venture will operate in the retail market of UK where preset growth rate is 0.6%.
 The average British shopper spent £508 on toys and games for their children in toy and
gaming market of country in UK in 2013.
 17.3 % population of UK under age of 15 years and consumptions of these kinds of
products are expected to increase from $1.5 billion in 2012 to $2.3 billion in 2017
(Takahashi, 2013).
 These characteristics and market trends will offer enormous growth potential for new
start-up.
 Growth of the tablet and PC market and increase in the amount of leisure time enjoyed by
consumers are the major factors which encourages business owner to open new online
store for selling game products.
In the context of analyzing macro market, PESTLE analysis is used that can be explored as
follow.
Table 3: PESTLE Analysis
Factors Descriptions
Political  Stable Political system
 Government regulations and legal
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issues
 Favorable polices to encourage the
online game industry‘s development
(Zikmund and Barry, 2006).
Economic  UK is a leading industry for games
development in Europe (Harvard
Pocket Mentor Series, 2007)
 Creative economy in the period 2011 to
2013
 Best source of games than 10 year ago
 This sector contributes more than £10m a
week of Gross Value Added in economy
(CI UK to the world, 2013)
 Expansion of gaming market and high
spending in economy (Araujo, Finch,
and Kjellberg, 2010)
 Learning games market grow from
$3.9 billion to $8.9 billion in 2017
(Takahashi, 2013)
Social  Highly acceptance of games, software
and toys socially or within a culture
 Organizes video-game tournament
indicates the growth of e-sports
 7 in 10 Britons have played some form
of video games and use software in last
6 months
 33.5 million gamer audience
 Enhance in the amount of leisure time by
customers (CI UK to the world, 2013.)
 Gamer spends around 11 hours gaming a
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week (Thomas and Derammelaere,
2013)
Technological  400-plus games professionals across
Europe
 Apps and Smartphone’s are most
popular format (Sambuchino, 2011)
 Early technology adopter environment
 Huge investment in emerging
technologies including cloud computing
and data centre sectors (Nikolai, 2006)
 Acceptance of learning apps on mobile
devices promotes education software
Environmental  Strict environmental regulations and
increasing environment concerns
 Strict policies against packaging and
waste for example, carrier bags are
considered as a chargeable item
Legal  Favourable trade and tariff policies
 More than 95% of UK games
companies sell products
 Copyright and intellectual property rights
 Privacy and security (Kotler, Bowen
and Makens, 2006)
Explanation: On the basis of PESTLE analysis technique, it is clear that political stability,
economic conditions and increasing spending of customers in gaming, toys, software and other
products are favourable for new start-up. In addition, technology advancement and increasing
craze of children and whole society provides business opportunity to new venture to open online
stores and meeting their gaming and quick delivery desire in a quick manner. However, strict
laws and regulations related to intellectual rights and privacy and security can also influence
business of new start-up (Cravens and Piercy, 2008). On the other side, technology advancement
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and more than 400-plus games professionals across Europe are the major contributors of gaming
industry. They can play a crucial role in developing and delivering software’s and gaming tools
that can create positive impact on day to day life of children in terms of various terms such as
boosting memory, developing cognitive skills, foster social interaction, and better able to react
and change tactics etc.
SWOT analysis
Table 4: SWOT analysis
Strengths
 Uniqueness in business idea
 Video training module to run
technology related gaming
software
 Simple product return policy
 Strong logistic to deliver products
to consumers (Bridge, 2013)
 Wide product portfolio
 Price penetration scheme
 Good network of entrepreneur to
various sectors
 Recruit talented employees
(Drucker, 2014)
Weakness
 No prior experience in
gaming industry
 No reputation
 Lack of awareness among
customers
Opportunity
 Increasing spending of customers
 Rising acceptance of online retail
stores
 High demand of education
software and games
 Growing needs of learning
software and types which
enhances memory, developing
cognitive skills, foster social
Threats
 High competition present in
the market
 Changing lifestyle and
behaviour of customers
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