Interchangeable Soles For Improved Adaptability Marketing Essay

TriGrip TM is a shoe which has interchangeable colloidal suspensions for improved adaptability, supplying our clients with a individual shoe which is functional in all sorts of surfaces i.e. grass, sod, indoors.

The company ‘s vision is ‘to provide advanced clean equipment that genuinely enhances the universe of jocks. ‘

The footwear market in UAE is worth more than 1 billion Dirham ( about US $ 250 million ) a twelvemonth. It is estimated to make $ 300 million over approaching old ages.

Our production will take topographic point at the RAK Free Zone. The merchandises will ab initio be available at different athleticss retail shops such as Sun & A ; Sands, Sporting House across U.A.E. We are aiming anyone and everyone who would wish to play football on occasion and professionally. Our chief mark age group is 12 to 25 old ages, within which we focus on adolescents. We besides will sell our merchandises to assorted local football nines and other concerns ( B2B ) .

We are viing with established footwear trade names such as Nike, Adidas and Puma. But since our merchandise is really alone i.e. , it provides all three sorts of football colloidal suspensions, that gives us a competitory border over others in the market.

We have an attractive promotional scheme such as advertisement runs which will assist in hiking our gross revenues at the launch of our merchandise. We will supply our merchandises with quality confidence and warrant.

BUSINESS OVERVIEW

Legal name – TriGrip

Trading Name – TriGrip

Business Address – Ras Al Khaimah Free Zone

Phone – Fax-

Email – tg-enquiries @ trigrip.ae

The company exists because of its quality criterions and advanced merchandises. The company focuses on functioning the demands of jocks every bit good as people who play different athleticss on occasion. Our intent is to supply merchandises that satisfy the dynamic demands of our clients.

TriGrip is a athletics footwear concern that operate as a concern to concern every bit good as to concern to client signifier of concern

Our major factor is that within the UAE itself there is a big demand for footwear and other athleticss merchandises.

TriGrip purchases natural stuffs such as C fibre, cotton, gum elastic, plastic, systemic gum elastic and nylon from China. Distributors are chiefly retail shops such as Sun and littorals, 360 and other shops. Our clients for concern to concern are local football nines such as Al Ahli and Al Wasl.

TriGrip will come under the universe footwear industry.

The client ‘s satisfaction is a key to the merchandises success. We are consumer focused. We besides emphasis on the use of environmental friendly techniques which make us a socially and environmentally responsible house. We besides strive for better and improved technological deductions to maintain us on par with the client ‘s outlooks if non transcend them. Our squad attempts have actively encouraged on a uninterrupted footing to do certain that TriGrip boots remains at the head of football boots design, non merely in United Arab Emirates, but anyplace in the universe.

Football being the most popular athletics in the UAE, mostly on the strength of a turning population, the footwear demand stabilized in the early 2000s. In the last twosome of old ages, nevertheless, demand seems to hold fallen. In 2007, import degree failed to maintain up with the degrees established in the twelvemonth earlier and at that place was a diminution of 18 % compared to 2006. Demand excessively seems to hold declined in the recent old ages with an mean 8 % lessening in net imports. Demand may hold marginally picked up in 2008, but it is improbable to hold reached the all clip extremum achieved in 2009 ( figures for the full twelvemonth 2008 are non available yet ) . However, as of 2010, the re-export trade in footwear is dining and turning steadily.

UAE had imposed dues and responsibilities such as licensing fees, trade licence, fabricating licence, hallmark dues, etc. This has wholly summed up to 24,000 AED yearly for us.

No.

AED

1.

Commercial

4500

2.

Industrial

5000

3.

Consulting and Service

7500

4.

One Time Rgestration Fee

7000

THE Market

The market section TriGrip belongs to is the Sports footwear market. Our merchandise chiefly targets the age group between 12-25.

Merchandise and services – Our merchandise TriGrip is a good modified football boots which has interchangeable colloidal suspensions for improved adaptability and besides supplying our clients with a individual shoe which can be used in all sorts of surfaces i.e. grass, sod, indoors.

TriGrip will aim the age group between 12 to 35 old ages of age, our chief ground on aiming this age group is that immature grownups take up football as a womb-to-tomb calling. But TriGrip will besides function the demands of clients beyond this age group. However, our primary age bracket within our mark market is 15-21 old ages of age

Pricing and distribution

No.

Merchandise

Monetary value

1.

A brace of football boots

375 AED

2.

Per brace of colloidal suspensions

39 AED

Market Tendencies

The footwear industry is deserving approx. more than 1billion AED in the UAE. Increase in demand is chiefly due to increased consumer outgo, increased touristry and considerable alterations in the retail footwear industry with the gap of big shops for footwear and dedicated subdivisions within the new section shops promenades which have emerged all over UAE. Even though imports have declined in the old old ages, late from 2010 imports have been dining.

Deductions or Hazard Factors

Potential Hazards:

Lack of employee preparation: As we are establishing a new merchandise, developing our employees is a must. Our employees need to be good trained to help the fabrication procedure.

Hazard of defaulted merchandise: There are opportunities of the merchandise being defective, due to complacency of the workers or proficient machinery mistakes.

Hazard of endurance of the merchandise in the market: there is ever a hazard whether a merchandise will be successful in the market or non. In add-on, being a new merchandise in the market, there are chances the clients may choose for recognized trade name. Ignorance by the clients due to the being of good established houses in the market is besides a hazard to the house.

Spending beyond the budget: Unexpected costs such as unexpected fix disbursals can increase the opportunities of transcending the budget of the house.

Solution to the hazards:

Supplying professional preparation to our employees by manner of naming experient professional trainers.

Reducing the hazard of defaults by transporting out secondary cheques on every merchandise manufactured.

Making the merchandise recognized by effectual advertisement and distribution.

Reducing unneeded costs and deploying the available financess to its best usage.

THE Competition

Rival A

Rival B

Who are the top rivals?

Adidias

Nike

What are your rival ‘s one-year gross revenues?

$ 10 million

$ 19,014 million

Who are the major directors and members of the board?

Herbert Hainer – Chief executive officer

Mark Parker-CEO

Is the company owned or in partnership with any other corporations?

In partnership with reebok

Not in partnership

What are the rival ‘s strengths?

Brand established

Brand established

What are their failings?

Expensive merchandise due to trade name name and renowned quality

Expensive merchandise due to trade name name and renowned quality

What is the company ‘s merchandise line?

Sports equipment

Eg: places, dress,

Sports equipment

Eg: places, dress,

How make the merchandises compare to yours, in footings of functionality, visual aspect and any other standards?

Normal non interchangeable colloidal suspensions.

Normal non interchangeable colloidal suspensions.

What is their monetary value construction?

240 AED / unit ( on an norm )

300 AED / unit ( on an norm )

What are the company ‘s selling activities?

Ads for new reachings, Promotional gross revenues.

Ads for new reachings, Promotional gross revenues.

What are the company ‘s supply beginnings for merchandises?

Own industries

Own industries

What are the strengths and failings of their gross revenues literature?

Strengths: Very professional in footings of presentation.

Failing: Not available to all subdivisions of the society.

Strengths: Very professional in footings of presentation.

Failing: Not available to all subdivisions of the society.

Is the company spread outing or cutting back?

Expanding

Expanding

Our rivals are good established and renowned trade names such as Nike, Puma, Adidas and Reebok. As shown above viing with these trade names would be a challenge for TriGrip.

The chief strengths of our rivals are that they are well-established and have adequate experience in the field. They besides have a strong trade name image in the footwear industry within the UAE. They have a immense fan base and trust from the society. However, their failing ‘ is that they have ne’er introduced a brace of boot such as ours in the market.

Our competitory advantage is that we provide lasting, comfy and sustainable boot which is non yet available in the market. Our monetary value flexibleness gives us a competitory border in the industry. We provide three colloidal suspensions in a individual boot for different surfaces i.e. grass, sod and indoors.

Gross saless AND Selling Plan

Since TriGrip operates as a B2B concern and as a B2C concern. Our clients are local football nines of Al Ahli and Al Wasl and local retail mercantile establishments such as GO athleticss and 360 Sports.

Our natural stuff are being supplied and imported chiefly from China, shown as follows

NO.

Name

Merchandise

1.

TPU SOLES LTD.

Football colloidal suspensions

2.

SHANGHAI GUANHONG PLASTIC CO.

Rubber SOLES

3.

NINGBO FONGTAI GLASS FIBRE PRODUCTS CO.

CARBON FIBRE

4.

NINGBO HUNG YUE PLASTIC FACTORY CO LTD.

Inner Sols

5.

DONGQUAN HUAMEI SYNTHETIC LEATHER LTD.

SYNTHETIC LEATHER

6.

FOSHUAN GUIDE NOUWOVEN CO. LTD.

INNER CLOTHE

Operating program

We have chosen the Ras Al Khaimah Free Zone as our fabrication land as it provides us with assorted advantages such as low rents, good installations and adequate parking infinite. We have taken an one-year rental for 240,000AED for a infinite of 30,000 sq/m.

Our endeavor requires a figure of equipment and extended process to do the merchandise such as importing natural stuffs ( i.e. caprine animal tegument leather, cotton, C fiber, plastic, etc ) , cutting, printing and HF embossing ( i.e. printing logo and alone usage designs for the overall visual aspects of the boot ) , sewing, enduring ( i.e. proper adjustment of the places to different sizes utilizing paradigm theoretical accounts ) , assembly ( i.e. puting the sole and lacing to the boot ) and eventually choice control and wadding. As of furniture, our house requires furniture deserving _ _ _ _ _

Future expenditures – Future outgo for our house includes research and development so as to run into the client ‘s demand.

Research and Development- Research for our merchandise includes doing the shoe comfy to each and every person. We have decided to secure machinery in order to enable us to do customized places for our client ‘s.

Environmental compliance- Environmental consciousness is a top concern at TriGrip. We have set up and full subdivision in our mill where waste stuffs such as plastic, paper and general waste goes into a separate container in order to be sent to recycling works. We have used our resources and natural stuff to its maximal extends so as to cut down wastage.

FINANCIAL FORCASTS

BALANCE SHEET

Balance Sheet as on April 01, 2012

Assetss

AED

AED

AED

Current Assetss

Cash & A ; Bank

105,400

Stock

262,500

Raw Material

187,500

Entire Current Assets

A

A

555,400

Fixed Assetss

Furniture

12,000

Less: Depreiciation

-600

11,400

Avant-gardes

140,000

Less: Depreiciation

-14,000

126,000

Machinay

750,000

Less: Depreiciation

-10,000

740,000

Land & A ; Bldg.

250,000

Entire Fixed Assetss

A

A

1,127,400

Entire Assetss

A

A

1,682,800

Liabilties

Owners Equity

2,000,000

Less: Net loss

-317,200

1,682,800

Entire Liabilites & A ; Onwer ‘s Equity

A

A

1,682,800

INCOME STATEMENT

Income statement April ’11 to March ’12

Gross saless

487500

Cost of gross revenues

325000

Gross Net income

A

A

162500

Operating Expenses

Salary

127,200

Ad

Magazines

5,500

Fliers & A ; Booklets

9,000

Radio

85,000

110,000

Taxes & A ; Duties

9,000

Cleaning

4,900

Utilities

Heat and A/C

30,600

Water

12,400

Telephone

17,000

60,000

Transportation system

120,000

Depreciation

24,600

Legal dues

24,000

Entire Operating Expenses

A

479,700

Net Income

A

A

317,200

Income statement April ’12 to March ’13

Gross saless

1,696,875

Cost of gross revenues

1,131,250

Gross Net income

A

A

565,625

Operating Expenses

Salary

127,200

Ad

Magazines

5,500

Fliers & A ; Booklets

9,000

14,500

Cleaning

3,700

Utilities

Heat and A/C

36,000

Water

13,000

Telephone

23,000

72,000

Assorted

10,200

Transportation system

120,000

Depreciation

24,600

Legal dues

17,000

Entire Operating Expenses

A

389,200

Net Income

A

A

176,425

Less: Dividends ( 5 % )

8822

Income after dividends

A

A

167,603

HUMAN RESOURCE Plan

Key Employees

No.

Name or Title

Key Duties

Qualifications

1.

Undertaking Manager

Manage and take the undertaking squad.

Pull off the coordination of the spouses and the working groups.

Develop and keep a elaborate undertaking program.

2.

Cost Manager

Pull off the cost budgets.

He is responsible to keep good dealingss with proficient and finance section

3.

Human Resource Manager

Maintain employee public assistance

Enrolling qualified personal

Maintain financess for employment wage and benefits.

4.

Selling Director

He is responsible for:

Gross saless

Ads

Promotions.

5.

Finance Manager

Make sure that the financess are put to its best usage.

Pull off the debt and equity

Pull off the hard currency flows of the company.

Communication

The communicational construction we have chosen for TriGrip is Free-flow Communication. Effective and efficient communicating is of import for the smooth running of an organisation. It enables fast flow of information between different sections of the house. There are no barriers of communicating between the worker and his higher-ups. It besides puts the worker at easiness while pass oning with his superior. Without free-flow communicating in the house, employees will be stuck in a informational vacuity where every treatment is closed. This gives TriGrip an advantage between the directors and their subsidiaries.

Technical Manager

Finance Manager

Human Resources

Selling Director

Cost Manager

Undertaking

Director

POLICIES AND PROCUDURES

TriGrip employs 10 employees who work two displacements of 5 hours each with a one hr tiffin interruption, ( Six workers, two cleaners and two technicians ) . We will besides engage one individual to oversee the overall undertakings and do certain that the undertaking has been completed at the allotted clip. He will measure the public presentation of each and every worker by maintaining an oculus on whether they have produced the needed sum of places per twenty-four hours.

Each employee is given a wage of 1,000AED with benefits such as visa sponsorship, free furnished lodging, free transit to and from the mill and free tiffin. The entire payment on wages for each employee will come up to 120,000AED.

Each employee is given a one month holiday every two old ages and during the absence of the employee who left for holiday, another employee will be hired to replace him for the same wage and benefit. This will go on until all the employees have been given their merited interruption.

Our employees will travel under a preparation class for a month. The preparation includes briefing on how to do proper use of the machines while maintaining minimal costs. As for development, our machinery and engineering will be developed. Our Technicians will besides travel through preparation in order to maintain up with the latest engineering.

ACTION Plan

Number

Action

By when

Business program completion

10th March 2011

Puting up mill and completion of legal demands

20th-30th June 2011

Commence production

1st July 2011

Entry market

1st-7th August 2011

Gross saless audit

March 2012

Expansion AND GROWTH

TriGrip maintains gross revenues between retail mercantile establishment such as shoe marketplace and Sun and sans and football nines. As TriGrip grows and gross revenues picks up, as directors we would get down up our ain mercantile establishment. This would let us to hold direct contact with the clients. This would give us an advantage as it would supply feedback.

As manner tendencies advancement amoung immature grownups the demand for different alone usage made teguments are on the rise in the market, here at TriGrip we offer clients custom made football boots to suit their demand and personality. TriGrip provide clients with broad scope of designs and monetary value scope which would let them to do an informed determination on their pick and budget.

To heighten the lastingness and to cut down the weight of the boot TriGrip ‘s Research and development would put in C fiber ( being light but strong metal ) into the boots.

THE BREAK-EVEN ANALYSIS

The break-even analysis is a technique used by troughs to entree their cost, volume and net incomes. It determines the likely net income or loss in the house and when it is achieved. The gross volumes at which there is no net income or loss is known as the break-even point. The break-even graph shown above points out that TriGrip breaks even at 5333 end products in February 2012, at this point at that place no net income or loss i.e. cost and gross are equal.

EXIT STRATERGY

In instance the concern fails to last in the market, we as director would choose for Management Buyout as our scheme. We would choose to recapitalize and sell our house to the following coevals of direction. This would be finance with a peculiar combination of debt and assest.