Gear Plus: Comprehensive Business Plan for Online Fitness Retail Store

This business plan outlines the establishment of Gear Plus, an online retail fitness clothing store based in Acton, London, targeting the UK market with potential expansion to other EU countries. The plan details the company's mission, vision, objectives, and business philosophy, emphasizing unique and innovative fitness clothing designs at competitive prices. It includes a PESTLE analysis, product features, competitive advantages, and a comprehensive market analysis. The operational plan covers production, location, and supply chain, while the marketing plan addresses market size, segmentation, and target customers. The sales plan provides sales forecasts and strategies. Financial aspects include start-up costs, funding sources, profit and loss projections, balance sheets, break-even analysis, and cash flow statements. Future expansion plans, management structure, risk assessment, and legal requirements are also addressed, providing a holistic overview of the business's strategic approach and operational considerations.

BUSINESS INTEGRATION PROJECT
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ABSTRACT
Competition is fierce in the online clothing industry. Gear Plus product features are of
highest quality and competitive for meeting the apparel needs of potential customers. With the
rapid increase in the fitness sector, every customer wants options in the apparel of fitness wear.
Thus, regarding this the present study will be emphasizing on ‘Gear Plus’ fitness which will be
an online retail fitness clothing store that will focus on selling gym and fitness wear and will be
launched by two partners. The main objective of this business plan is to increase the net profit
from the first year of operational year. The incorporation of unique and innovative designs in the
products is considered as a core aim for Gear Plus. This company plan to sell products at a
reasonable and valued price. The main target market will be customers in the UK and in the
future, Gear Plus plan to expand to customers in other EU countries.
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TABLE OF CONTENTS
CHAPTER – 1 INTRODUCTION..............................................................................................................................4
1.1 COMPANY DESCRIPTION.......................................................................................................................................4
1.2 MISSION AND VISION STATEMENT........................................................................................................................4
1.3 BUSINESS OBJECTIVES..................................................................................................................................4
1.4 BUSINESS PHILOSOPHY.................................................................................................................................4
1.5 BUSINESS ETHICS............................................................................................................................................5
1.6 PESTLE...............................................................................................................................................................5
OPERATIONAL AND MARKETING ISSUES WHILE LAUNCHING THE BUSINESS..............................................................7
CHAPTER – 2 PRODUCTS........................................................................................................................................8
2.1 PRODUCT FEATURES-UNIQUE SELLING POINT.......................................................................................................8
2.2 COMPETITIVE ADVANTAGE.........................................................................................................................9
CHAPTER 3 COMPETITION AND MARKET ANALYSIS................................................................................10
3.1 FACTS ABOUT THE MARKET......................................................................................................................10
3.2 COMPETITION RESEARCH ANALYSIS......................................................................................................10
CHAPTER – 4 OPERATIONAL PLAN..................................................................................................................11
4.1 PRODUCTION..................................................................................................................................................12
4.2 LOCATION.......................................................................................................................................................12
4.3 SUPPLY AND DISTRIBUTION......................................................................................................................12
CHAPTER 6 MARKETING PLAN..........................................................................................................................12
5.1 MARKET SIZE.................................................................................................................................................12
5.2 SEGMENTATION............................................................................................................................................12
5.3 TARGET MARKET - WHO WILL YOUR FIRST CUSTOMERS BE? (B2B OR B2C)...............................12
CHAPTER 6 SALES PLAN......................................................................................................................................12
6.1 SALES FORECAST..........................................................................................................................................12
6.2 SALES STRATEGIES......................................................................................................................................14
CHAPTER 7 FINANCE.............................................................................................................................................14
7.1 START-UP.........................................................................................................................................................14
7.2 FINANCE SOURCES.......................................................................................................................................14
7.3 PROFIT AND LOSS ACCOUNT.....................................................................................................................15
7.4 PROFIT PROJECTION 2-5 YEARS................................................................................................................15
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7.5 BALANCE SHEET AS AT OPENING DAY...................................................................................................16
7.6 BREAK-EVEN POINT.....................................................................................................................................17
7.7 12 MONTH CASH FLOW STATEMENT.......................................................................................................17
7.8 CREDIT POLICY................................................................................................................................................19
7.9 MANAGING ACCOUNT PAYABLES AND RECEIVABLES......................................................................19
CHAPTER 8 FUTURE PLANS FOR EXPANSION AND GROWTH STRATEGY..........................................19
8.1 INCREASING MARKET SHARE FORECAST..............................................................................................19
8.2 CAPITALIZATION GROWTH........................................................................................................................19
CHAPTER 9 MANAGEMENT AND ORGANIZATION......................................................................................19
9.1 EMPLOYEES....................................................................................................................................................19
9.2 ORGANISATIONAL CHART..........................................................................................................................20
9. 4 CORPORATE SOCIAL RESPONSIBILITY..................................................................................................20
CHAPTER 10 RISK ASSESSMENT........................................................................................................................20
10.1 MARKET RISK AND FINANCIAL RISK....................................................................................................20
10.2 OPERATIONAL RISK....................................................................................................................................20
CHAPTER 11 LEGAL REQUIREMENTS.............................................................................................................21
CONCLUSION...........................................................................................................................................................21
REFERENCES............................................................................................................................................................22
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CHAPTER – 1 INTRODUCTION
1.1 Company description
This business plan represents the new establishment of “Gear Plus Online Retail Fitness
Store” in the UK. Gear Plus will be situated in Acton, London. The location has been selected
because it is situated in West London which is an emerging place for start-ups. The business will
offer online fitness clothing for both men and women that are adaptable for fitness as well as for
general every day wear.
1.2 Mission and vision statement
Mission
To provide quality unique styling & design of fitness clothes which energizes indoor and
outdoor activity.
Vision
The vision of Gear Plus is to become one of the leading online retail businesses in the
field of fitness clothing through the innovative and unique services.
USP
Chief focus of the business will be laid on delivering quality services in retail industry
through adding several stylish and innovative clothes for indoor and outdoor activities.
1.3 BUSINESS OBJECTIVES
The objectives of the Gear Plus are as follows:
• Become the premier online fitness retailer in the UK
• To attain a base of 900 customers within the 1st year of establishment
• To achieve a net profit during each year of business
1.4 BUSINESS PHILOSOPHY
 To provide customers with high quality of products and services
 To keep updated with new trends in the field of fitness clothing design
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1.5 BUSINESS ETHICS
Guarantee the security and privacy over the purchases through credit card purchases
• To ensure products are authentic and follow all the prescribed safety standards
• Adhere to a customer-business relationship transparency along with financial
transparency
1.6 PESTLE
PESTLE depicts external factors that have an integral role towards influencing the
performance of business. However, these forces replicate the various opportunities and threats in
the market. The following external forces can affect the company in the long-term:
Forces Impact
Political Since, UK is a constitutional monarchy which
runs under the influence of parliamentary
system; therefore UK is said to be fair and
stable country for Gear Plus where in
numerous opportunities are there for business
growth and success (Hermann, 2009). It is
relatively a fair company with the public
having a larger influence on the inner
workings. UK is politically stable; however
on the other hand there are some well- hidden
corruption.
Economical UK has a strong economic position relative to
other countries. Since, it has a high GDP;
therefore it must have several issues as well.
Gear Plus has the opportunity to enhance the
level of profitability and success as UK has
world’s largest GDP. It lies under the
category of free market; therefore Gear Plus
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could conduct the business appropriately in
the new market place. Apparently, economy
of every country is the main driver that
enhances success and growth prospects (Kim,
Forsythe and Moon, 2002). People have the
purchasing power to buy the products; thus
Gear Plus can focus more on domestic selling
of goods and services. The opportunities of
direct investment are also higher in the same
context.
Social The country (UK) has been following high
social standards; thus every business entity is
required to follow all the social values and
norms. In this respect, many free public
services are also introduced for the clients
which shows the concern towards social
aspects. People in UK have high standard of
living; therefore Gear Plus should focus on
delivering quality products and services.
Technological UK does not have good access to technology;
therefore operating the business in Acton
would lead Gear Plus to invest much
resources in technological aspects (Kotler and
et.al., 2010). Thus, in this respect it can be
said that the advancement in the technology
initiates need for interactive displays of
product plus dynamic personalization. Gear
Plus is also required to focus more on
technological sources so that new tools can
be adopted for enhancing service dimension
capability. At the time of introducing new
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products at market place, Gear Plus has to
consider effective laws regarding intellectual
property. This can also generate internal
competition to stimulate growth prospects.
Environmental It is imperative for Gear Plus to reflect
consider environment aspects on the
operations so that large number of customers
can be persuaded. All the business entities
have to focus on environmental facets on
higher extent so that market share, customer
base, stakeholder interest, business
profitability and other related benefits can be
acquired. Regarding this, Gear Plus will have
to contribute more in social responsibility
development.
Legal The legal elements in the United Kingdom is
taken as more complex and the company has
to comply more with UK and EU regulations.
As per the legal framework, it will be vital
for Gear Plus to give necessary benefits to the
employees. Violation of legal policies and
framework will also affect sustainability of
Gear Plus.
Operational and marketing issues while launching the business
At the time of launching the business’s products (fitness products of Gear Plus) at Acton
London, the business might face several challenges and constraints. A few are discussed in the
below section:
 Unavailability of human resources: Apparently, while launching business in external
market place, it is essential for Gear Plus to arrange human resources in adequate way so
that all the business services can be managed (Dibb and Simkin, 2013). This is one of the
major issues that could generate while operating business in Acton, London. Since, it
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will be a new location for Gear Plus; therefore the business may find it difficult to search
for talented personnel.
 Improper arrangement of financial resources: Finance is the core requirement for every
business entity; therefore Gear Plus will have to arrange financial resources to manage
all the business practices. At the time of launching the business in Acton, London, Gear
Plus will have to arrange financial resources in adequate quantity. This will also
underpin all the business facets.
 Changes in market structure: Market structure changes rapidly; therefore for such
context Gear Plus needs to emphasize on all the legal framework so that business
prosperity can be maintained (Doole and Lowe, 2008). This can also affect all the
operations of the organization and business might have to introduce various new aspects.
This might be a complicating aspect for Gear Plus because it requires attention on
several things that are vital for business management.
 Inappropriate market research: Market research plays crucial role for every entity;
therefore Gear Plus have to conduct market research prior introducing the products at
market place. In this respect, information should be collected regarding competitors who
are serving the similar products in the same entity.
CHAPTER – 2 PRODUCTS
2.1 Product features-unique selling point
As per the business products and services, it is essential for Gear Plus to sell variety of
fitness products to the consumers so that they can meet the requirements of customers. The main
USP of Gear Plus is deliver quality products to the clients as per their needs. Range of clothes
should be added in the product line for meeting various requirements of clients.
One of the major features which distinguish Gear Plus online is commitment to provide
stylish, unique, quality and customized fitness wear clothing options for both men and women.
1. Clothing
Specifications
 Designed with specific fabrics that are resistant to fade and shrink
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 Manufactured with high quality standards
 Innovative designs in the products with colors and different patterns
2. Customized products
Specifications
Gear Plus will be delivering customized products to the consumers; however the main
aim of the business entity remains the same (that is to deliver clothing products for indoor and
outdoor fitness activities). The business have t-shirts for both men and women and along with
that, track pants are also available for the end users. Printed t-shirts with logo and design are
available for the clients. However, in terms of customized products, Gear Plus is also providing
specific products to people as per the choice wherein they can print any quotation if required.
One of the major significance of products of Gear Plus is that the business has variety of clothes
in all shapes and colors. This is essential in terms of meeting the needs and demands of all
customers.
In order to differentiate the products, Gear Plus has come up with light weight running
shoes that measures the kilometer that is covered by the person while carrying out the requisite
activities. This can be highly used at the time of doing Gym; hence it is expected to be liked by
the consumers. The product is exclusive because the weight of shoes is light; even people would
not be able to realize the presence of shoes.
2.2 COMPETITIVE ADVANTAGE
Competition is fierce in the online clothing industry. Gear Plus product features are of
highest quality and competitive for meeting the apparel needs of potential customers. With the
rapid increase in the fitness sector, every customer wants options in the apparel of fitness wear.
In order to compete in external market place, it is essential for Gear Plus to emphasize on
Porter’s Fiver forces model so that each and every dimension of competitive market can be
analysed.
 Buyer’s power: Buyers have the ability to decrease the prices for products because of
existing competition. This generates the demand for substitute products and as a result it
can affect the business prospects of Gear Plus (Freytag and Munksgaard, 2011). Buyers
have the ability to influence the level of demand so that because they have several
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options. Nike, Adidas and Puma are some of the major brands whose products are sold to
the consumers on higher extent and which also fulfills the needs of end users.
 Supplier’s power: In the fashion retail industry, supplier power is relatively small and
insignificant force as most of the apparel companies source their products from other
manufacturers. Thus, it can be said that suppliers of Gear Plus will have little control
over fashion industry. As a consequence, input prices for this industry are relatively low
and will stay there till the global development issues are resolved.
 Competitive rivalry: The intensity of competition is higher in fashion retail industry
because there are large number of sellers operating business in the same market place.
This not only leads to customer switch over; but also creates more competition in
existing market place. Market place (Acton, London) is highly saturated because of the
availability of similar products and services (Berman, Evans and Mathur, 2010).
 Threat of new entrants: Political forces of UK are dissimilar in many ways and it chiefly
emphasizes on free moving policies and framework. Threats from new entrants are
minimum; therefore Gear Plus can operate the business successfully in Acton market
place.
 Threat from substitute products: Threats from substitute products are higher as there are
several entities working in the same industry. The risk of competition also develops due
to high use of social media which not only persuades people; but also leads the entity to
sell the products to numerous customer segments. Buyers have large amount of indirect
power to bargain because of the plenty of options available to them. Hence, it can be said
that it would be difficult for Gear Plus to survive competitively in Acton market.
CHAPTER 3 COMPETITION AND MARKET ANALYSIS
3.1 FACTS ABOUT THE MARKET
Since, entities working online are always software driven; therefore Gear Plus will be
emphasizing on the same. The software works in systematic manner wherein customers have to
select the products and services as per the choice and after including it in the wish list, products
will directly show in cart. It will cost around 900 pounds for Gear Plus every month which
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3.2 COMPETITION RESEARCH ANALYSIS
The major competitors of Gear Plus will be ASOS because the entity has all sorts of
products and services. The business is also able to acquire maximum attention form the clients;
hence this gives huge competition to the business. Apart from this, Powerhouse Fitness can also
give more competition to Gear Plus because the entity also sells all the fitness and gym
equipment. It is one of the largest internet retailers in UK which has adopted numerous
promotional strategies for maximizing the attention of clients. Yet another competitor is Adidas
whose fitness products are also sold in Acton.
Stating the marketing strategies of Adidas, it can be said that the business is based on
demographic behavioural and psychographic factors. Adidas uses differentiated targeting
strategy to target young adults as well as children who are passionate about fitness and sports.
Further, it targets customers in the age group of 13-40 years but majority of its customers are of
15-30 years old who hail from upper middle class or the luxury class. Along with this, user and
benefit based positioning are the chief techniques of Adidas for the purpose of creating
differentiated image among customers.
 The entity is also using the 4Ps in effective manner wherein the major product of Adidas
is footwear. This comes in various styles and designs because the footwear is robust and
athletic. However, the secondary product of Adidas is apparel and accessories which are
also greater in demand.
 In terms of pricing, Adidas uses price skimming strategy so as to remain competitive in
the market place. The strategy is also utilized because the products are uniquely designed
(Caemmerer, 2009). At the same time, brand value is the main motive for which high
prices are determined.
 Adidas sells its products and services through retail outlets and this is the reason the
business has exclusive stores. Multi- brand showrooms also have the products of Adidas;
hence they act like distributors. Similarly, the products are also sold through online
medium which increases distribution channel of Adidas.
 Creative and innovative advertisement are the major sources through which Adidas
promotes all its products. Sales promotion and trade promotions are also regularly offered
by Adidas to their channel partners to enhance the sales of the brand.
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