Feasibility Business Study

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Kicks & kroissants

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  • What makes our sneakers different from the rest? Our sneakers capture timeless designs rooted for the evolving generation. Our unique styles driven by are driven leisure, and instantly become classics.
  • Feasibility Business Study

    1. 1. KICKS &KROISSANTSnathan El Kordi-HubbardRicardo TaylyleMaltzChad Goldsmith Jonathan El Kordi-Hubbard, Ricardo Taylor, Kyle Maltz, Chad Goldsmith
    2. 2. OUR VISION“It is our goal to provide our customers with the most unique retail experience possible.”
    3. 3. BUSINESS OVERVIEW: WHAT IS KICKS &KROISSANTS? A new physical retail store specializing in the electronic sale of sneakers, merchandise, and food. Click and Brick e-commerce store.  Allowingcustomers to make purchases digitally and pick them up in the store.
    4. 4. CUSTOMER SERVICE BLUEPRINT Arrive at Customer Go sit at Kicks & contact and table Kroissants greeting Order Receive merchandise products and food etc.
    5. 5. HOW WILL THE PRODUCTS BE SOLD? Touch screen ordering on table mounted e- menus Orders are transmitted to the kitchen and customer service via the software interface  Tapcode Technologies. Orders are processed, accounted for, then delivered
    6. 6. PRODUCTS: SNEAKERS We will carry specialty sneaker accounts from Clae, Gourmet, Nike, New Balance, Puma, Saucony, Supra, and Vans.
    7. 7. U.S. SNEAKER MARKET Athletic shoes dominate the US market with 41.5% market share The United States footwear industry has a market value of $62.1B By 2014 it is estimated market value will rise 11.9% to $69.5B (Datamonitor). Table: United States Footwear Industry Market Value in billions (05-09e)
    8. 8. PRODUCTS: MERCHANDISE We will carry apparel and accessory accounts from KR3W, LRG (Lifted Research Group), Manhattan Portage Neff, Nixon, and The Hundreds.
    9. 9. PRODUCTS: FOOD We will serve a variety of croissants, cookies, muffins, scones, coffee, teas, specialty and soft drinks.
    10. 10. PRODUCT PRICING Sneakers $50-$150  Coffee Drinks $3, $4, Shirts $15-30 $6 Shorts & Pants $20-  Tea Drinks $3, $4, $6 $40  Specialty Drinks $4, $6, Bags- $20-$40 $7 Accessories $5-30  Food $4
    11. 11. WHAT THE STORE WILL LOOK LIKE
    12. 12. HOW WILL WE GET THE ACCOUNTS? Networking  Word of mouth Reaching out and contacting the regional and local distributors.  Cannotcrossover accounts.  Bodega: Adidas, Concepts: Nike SB The food will be bought wholesale.
    13. 13. THE TARGET MARKET Target age group of 14-34  Makes up 42% of the total population in Boston (246,477/589,141)  70.6% are tech savvy (U.S. Census Bureau)  Average disposable income of $123,833 Appealing to their notion of looking to large urban cities for a sense of inspiration.
    14. 14. OUR LOCATION Kicks &Kroissants will be located on Newbury Street in Boston, Massachusetts.  “Boston’s most enchanting street”  The focal point of shopping in Boston. Newbury Street shows an individuality and uniqueness that lacks in other commercial areas.
    15. 15. WHY BOSTON? Boston embodies a rich urban retail environment not found in many American cities With 9 universities within 7 miles of Newbury Street it makes our target market very accessible.  BerkleeCollege of Music, Northeastern, Simmons, Emerson, Boston University, Harvard, MIT, Boston College, and Tufts.
    16. 16. DIRECT COMPETITION: SATURATED Bodega (10 min walk)  Strictly shoes & merchandise Concepts (57 min walk)  Strictly shoes & merchandise Johnny Cupcakes (5 min walk)  Strictly pastries & apparel.
    17. 17. FINANCIALS: START UP BUDGET
    18. 18. FINANCIAL INTERPRETATIONS: IS THIS A POSSIBILITY? Daily Customers for • Total Revenue: $296,100 each season: Fall 30-40  Sneakers 2,700 units @ Winter 10-20 Spring 30- $80 40 Summer: 50-60  Merchandise 1,700 @ $36 Looking for a start up  Food 5,400 @ $3.50 capital (investments and • Cost of goods sold is loans) of $500,000 $135,000 Total Fixed Expenses +  Buying 3,000 pairs @ $36 Cost of Merchandise =  Buying 2,000 units @ $11.25 $427,000  Buying 6,000 units @ $0.75  $73,000 for “wiggle room” • Gross Profit (TR – CoGS) after selling inventory is $161,000
    19. 19. OUR FUTURE Expecting 2nd year growth of 30% and 15% annually thereafter.  Year 2 profits of $209,300  Year 3 to future profits of an extra $24,150 annually ($233,450) Kicks &Kroissants is an exciting opportunity to engage in the next generation of retail.
    20. 20. SOFTWARE EXAMPLE VIDEO DigitalTouch Systems
    21. 21. Kicks &KroissantsTHANK YOU!

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