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"Creating a franchise store power tools" 220 volts "

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"Creating a franchise store power tools" 220 volts "

Limited Liability Company "Technology" (LLC "Technology"), hereinafter the Company, is implementing an investment project "Establishment of franchise stores power tools" 220 volts "in the Siberian Federal District. The project will open 21 stores by wholesale and retail power tools, as well as pre-and post-sales preparation and maintenance of power tools.

Opening stores planned in the following cities of Siberian and Urals federal districts:

Angarsk, Achinsk, Ekaterinburg, Irkutsk (2 pcs.) Kansk, Kemerovo (2 pcs.) Kiselevsk, Krasnoyarsk (2 pcs.) Leninsk-Kuznetsk, Mezhdurechensk, Novokuznetsk (2 pcs.), Novosibirsk, Prokopyevsk, Tomsk ( 2 pcs.), Tyumen, Chelyabinsk.

Federal electric chain stores

Chain stores, united by a common brand name "220 Volts", founded in 2003. The company is a group of Industry and Construction "System".

Today, "220 volt" is:

- A leading retailer in the Russian market elektroinstrumentalnom;

- 75 shops under one brand, "220 Volts", operating in 39 cities in the state;

- More than 10 000 items in stock;

- The leading online store for this profile in Russia;

- One of the largest operators in the wholesale market of electric tools and supplies;

- A common format and concept of design and merchandising for all stores.

In all the stores "220 volts" the products of the world's largest manufacturers - Hitachi, Bosch, Skil, Makita, Metabo, Black & Decker, Telwin, Awelco, Hammer, Mtd, Echo, Husqvarna, Partner, Stihl, Homelite, Endress, Kipor, Geko, Abac , Dremel, and many others.

Production Project

All products offered for sale at the newly opened stores are divided into three main categories: household tools, semi-professional and professional tool. Sales management structure allows for greater profitability of stores "220 volts" when compared with similar stores of competitors.

As noted above in the text, the project is supposed to open 21 stores in trade power tools.According to the planned schedule of opening, the last shop (21st), opened in November 2013 (23rd month of the project). The volume of sales in the month of the project will amount to 36.4 million rubles / month. Later (2016), under the plan sales total store sales increase significantly, and will be from 26.41 million rubles / month. to 69.24 million rubles / month., depending on the season.

Sales market

Held power tools market analysis showed that the main consumers of the stores "220 volts" are the people (individuals, corporate clients) cities in which these shops are located, and residents of adjacent areas.

Summarizing the results of analysis of the strengths and weaknesses of competitors in the trade mark "220 volts" to villages, promising in terms of store openings, we can note that the competitive advantages of chain stores in relation to most other retail outlets that sell power tools include the following:

- A wide range of goods: a large number of brands, wide selection of tools depending on the functionality, availability of goods belonging to adjacent markets (garden equipment, generators, etc.);

- High level of service;

- An Internet site that allows you to use online sales to attract more audience;

- High awareness of the brand (basically, also thanks to the Internet site);

- Flexible marketing policy, which allows to increase sales by conducting large-scale advertising campaigns, coupon shares, etc.

Competitive advantages of the stores "220 volts" in relation to most competitors suggest that at the entrance to the markets of the analyzed localities shops to occupy a significant niche as due to the growth of the market, and due to some displacement of small non-specialized stores.It should be noted that the entrance of shops "220 volts" to unsaturated markets may slightly increase the rate of growth of these markets due to better meet consumer demand.

The strategy of moving goods

Network of "220 Volts" is the leading retail operator of the power tool on the market: it brings together under one multibrand store 74, working in 29 regions of Russia, and an online store that provides its services throughout the country.

Network of "220 Volts" a comprehensive approach to promotional marketing and the development of a regional network. In all the stores "220 volts" are unified concept of design and merchandising, the main purpose of which is the complete satisfaction of the customer's wishes. The key to success appears competent personnel system, which allows for fully trained staff. Employees engaged in selling gasoline and electric - high-class professionals whose goal to find an individual approach to each client. They are always ready to assist the client in selecting a tool, to advise on the intricacies of his work, the functional features, to advise a similar model. In the stores, "220 volts" shares are held regularly, during the action which greatly reduced prices for the products.

In stores "220" clients are met only with courtesy and service.

The strategy of moving goods to market is developed by specialists of "220 Volts", and is mandatory for all new entrants (see Appendix 5). This section presents the main stages of product promotion strategy of "220 volts":

The seller fulfills sales skills training under the guidance of manager and management staff is trained in doing business with the detailed standards that facilitate and regulate the conduct of biznesa.V stores "220 volts" organized by the management structure of sales by providing brands with a maximum margin of each product group.As a consequence, the orientation of sales going to the most profitable brands, which allows you to get maximum revenue. Gross margin on average 42-44%, which is one third higher than in brands konkurentov.Vydelenie with maximum margin allows the efficient use of space by placing goods store, with priority to the sale. Focus on the most profitable brands is in the results of advertising campaigns magazina.Po working month is the analysis of the sales structure. The analysis reveals trends in demand and is adjusted trade orders. The analysis helps to determine the residual errors in the sales structure and refocus on profitable brands. In this motivating factor is the bonus compensation system that allows the consultant to receive additional income in case of a sale margin tovara.Set shops "220 volts" provided an automated process sales order processing through the Internet. Modern software allows you to maintain a good balance of goods in stock and effectively attract new klientov.Franshiza allows access to a catalog of products "220 volts" and quickly share information among partners, creating a uniform federal network. It should be noted that the network of regional warehouses reduces transportation costs and can deliver the goods to the customer with minimal costs. The automated system "1C" enables automatic control phase of the order and make timely korrektirovki.Dlya accelerate sales growth in the early stages of the new stores, as well as to maintain market share at a later stage of planned advertising campaigns. The cost of advertising a particular store are planned as part of 30 thousand to 75 thousand rubles a month.

Required volume of investments

The total value of the investment project is 56.704 million rubles.

The amount of investment costs for the project.

The amount of investment costs for the project now.

56.704 million

including

Lump-sum and annual payments

14.94 million

Buying commercial equipment

6.706 million

Making your store and outdoor advertising

1.808 million

The initial purchase of goods

33.25 million

Developing a business plan

525 000

To implement the investment project company (LLC "Technology") intends to attract credit funds in the amount of 35.0 million rubles., The remainder of the necessary funds (21.704 million rubles). The company plans to obtain from its own operations.

Evaluation of the project

Project performance indicators.

Rate

Value

The discount rate the project%

18

The payback time for RVR, months

34

Discounted payback period DPBP

41

Net present value NPV, rub

46,843,143

Profitability Index - PI

2.91

Internal Rate of Return IRR%

56.9

Horizon calculation, years

5

€ 854.000

Geography

Россия

Project specialization

Information

Project type: Creation of the a enterprise, start-upType of investment(s): Extra financingProject status: The business plan, the feasibility reportPayback: 34 month
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21 June 2013
#54
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23 June 2013
#54
0
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11 July 2013
#54
0
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27 August 2013
#54
0
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24 September 2013
#54
0
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30 October 2013
#54
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