BUSINESS PROPOSAL

ABOUT SHOES

Group 4
Arranged by :
Amar Ma’ruf
Thirafi Rama P
Taufik
Bellia Bai Azzah
Erna
Iren
Keys to Success

The key to success is to meet the demand for an upscale women's shoe store with a
wide selection and focused customer attention.

Objectives

1. To create a product-based retail store whose primary goal is to exceed customer's

expectations.

2. To increase the number of clients served by 20% per year by serving an unmet
need with outstanding selection and customer service.

3. To develop a start-up business, surviving off of its own cash flow.

Mission

Passion Soles' mission is to provide Eugene with an upscale selection of women's

shoes and outstanding customer service. We exist to attract and maintain customers.
When we adhere to this maxim, everything else will fall into place. Our services will
exceed the expectations of our customers.

Company Summary
Passion Soles is an upscale women's shoe store located in Eugene, OR., an un-
serviced niche. Customers looking for these shoes must travel up to Portland. Passion
Soles will be able to offer a wide selection because they will typically only have one
size available per style. This one size is used as a demonstrative model. All other sizes
are available within two days.

Company Ownership

Passion Soles is a sole proprietorship owned by Holly Heels.

Start-up Summary

Passion Soles will incur the following start-up costs:

 Computer system with CD-RW, printer, Microsoft Office, QuickBooks Pro, and
POS software.

 POS terminal/cash register.

 Back office desk and chair.

 Front of store counter.

 Shelving racks.

 Display racks.

 Chairs, mirrors.

 Assorted halogen track lighting.

Please note that the following items which are considered assets to be used for more
than a year will labeled long-term assets and will be depreciated using G.A.A.P.
approved straight-line depreciation method.

Products
Passion Soles will sell upscale women's shoes. The general categories of shoes that
will be sold are:

 Sandals

 Stylish work shoes

 Loafers

 Dress shoes

 Canvas athletic/stylish shoes

Passion Soles will strive to have one of the largest selection of shoes in Oregon,
barring the larger stores in Portland. Passion Soles will accomplish this by having one
size per style in stock as a demonstration model. Passion Soles will then order the
style in the needed size and it will arrive within two days (rush one day service is
available). This will be accomplished through a special relationship with the
wholesaler who is able to send out the right size in the right style on demand. Often a
wholesaler will be unwilling to ship out individual shoes, but Passion Soles was able
to secure an exclusive arrangement with a its wholesaler to meet this need.

Market Analysis Summary

Passion Soles will be targeting two distinct groups of fashion-concious female
shoppers--professional workers and housewives. While both groups are interested in
dress shoes, the professionals will also be looking for fashionable shoes they are able
to wear with their business attire. The housewives might be looking for fasionable but
more casual shoes.

Market Segmentation

Passion Soles is targeting two different population segments within the broad category
of the fashion-conscious female with disposable income.

 Professionals: these are full-time working professional women. They typically

earn more than $45,000. They will purchase shoes for the workplace, as well as
for leisure time.

 Housewives: The household income of this group is $60k-$120k, generally

toward the higher end of this range.

Target Market Segment Strategy

These markets will be targeted through an attractive, eye-catching storefront in a

popular mall. Most women within the target market shop at malls. Malls allow them
to visit many different stores within the same vicinity. By just having a visible
storefront in a well traveled mall, Passion Soles will receive walk-through customers.
While the leased space in a mall is expensive, one of the benefits that you pay for is
the mall association which spends money on marketing the mall and the stores within
the mall.

Strategy and Implementation Summary

Passion Soles will leverage their competitive edge of extensive selection to drive sales.
This is indeed a competitive edge because it is typically cost prohibitive for a store to
have as much of a selection that Passion Soles will offer. Because of a unique
business model, Passion Soles is able to leverage their financial resources and offer an
unmatched selection. This is done by carrying a large selection of styles by only
stocking one size per style. Once the customer has chosen the style, Passion Soles will
have the customer's shoes in one to two days.

Sales Strategy

Passion Soles' sales strategy will be based on display and visibility. A highly visible
store with attractive product displays located in the mall will get a high percentage of
foot traffic. This is especially the case for a women's shoe store. Women love to shop
for shoes. Some women even use shoe shopping as a form of therapy, similar to eating
chocolate. These activities can make them feel better.

The sales strategy will simply be, have the most complete selection of shoes.
Assuming the prices are reasonable, having an extensive selection will drive sales
because we believe our target markets of fashion-conscious females are always
looking for the perfect pair of shoes to coordinate with their fashion style.