1
PRINCIPLES OF BUSINESS
School Based Assessment
ESTABLISHING A BUSINESS:
MARKETING
NINETIIETH MINUTE
SPORTS FAN SHOP LTD.
“Here the game never stops”
NAME: Dominick Coke
CANDIDATE NUMBER: 100016243
SUBJECT: Principles of Business
SCHOOL: Campion College
CENTRE NUMBER: 100016
DATE SUBMITTED: September 9, 2013
TERRITORY: Jamaica, W.I.
TEACHER: Ms P. Morris
2
PRINCIPLES OF BUSINESS
School Based Assessment
ESTABLISHING A BUSINESS:
MARKETING
NINETIETH MINUTE
SPORTS FAN SHOP LTD.
NAME: Dominick Coke
CANDIDATE NUMBER: 100016243
SUBJECT: Principles of Business
SCHOOL: Campion College
CENTRE NUMBER: 100016
DATE SUBMITTED: September 9, 2013
TERRITORY: Jamaica, W.I.
TEACHER: Ms P. Morris
3
TABLE OF CONTENTS
Executive Summary…………………………………………………………………………... ………… 3
Organization of the Marketing Department …………………………………………………………….4-5
Market Research…….………………………………………………………………………………...........6
Product…………………………………………………………………………………..…........................7
Pricing Strategy……………………………………………………………………………………………..7
Place (distribution channels) ……………………………………………………………………………… 7
Promotion Mix………………………………………………………………………………………..…… 8
Identify government regulations impacting on the business………………………………………………. 9
Use of technology…………………………………………………………………………………………..9
Customer complaints………………………………………………………………………………………. 9
Ethical issues……………………………………………………………………………………………… 9
Conclusion………………………………………………………………………………………………… 9
References………………………………………………………………………………………………... 10
4
Executive Summary
Ninetieth Minute Sports Fan shop is sports apparel and fitness equipment retail store, that seeks to supply high
quality football, fitness and sports training equipment, shoes, apparel and merchandise to Jamaicans and
eventually the greater Caribbean Region. The firm will pride itself on selling great products from the best sports
brands at competitive prices.
The entrepreneur is in the final stage of talks with Italian sports manufacturer, Kappa, for a possible partnership
between the manufacturer and the recently established retail store. According to the deal, the firm will receive
deals on shipments of selected Kappa stock. Meaning the store will be able to sell football apparel from world
renowned European clubs, sponsored by Kappa such as Seri A (Italian first division) outfit AS Roma, English
premier league outfit Fulham F.C., for national teams including, the Reggae Boyz themselves the Jamaica
National team, and much more.
You see, the problem is that the national sport of Jamaica is football and yet how can a country filled with so
much fanatics and enthusiasts of the ‘beautiful game’, be so lacking in suppliers of the products that can allow
the fans to show how proudly devoted they are to their favourite football clubs and to show support for their
national team? How can a country, so proud of its great sportsmen and women and their achievements in the
world of sport, have such insufficient mediums through which schools, gyms, track clubs, football clubs and
sports facilities can purchase the needed fitness equipment that enhances the training and development of the
next generation of sportsmen and women? Just how the country has reached this predicament, where there are
little avenues to satisfy this great demand is completely mind-boggling.
It is for this reason that Ninetieth Minute Sports Fan Shop has been created, delivering on the needs of Jamaican
people to supply them with the sports equipment and apparel they so desperately are begging for. This company
promises to always supply a wide variety of equipment such as exercise machines, weights, running cones,
heart-rate monitors and much more. We promise to always be in stock of football kits from the most popular
clubs, to allow our consumers to gain that next level of satisfaction when watching and supporting their
favourite clubs. They will also be provided with the high-quality football gear: boots, jerseys, socks, shin
guards, you name it! We promise to provide everything that is required to make playing the game more
enjoyable and safe.
The firm is a sole trader company operating in a mixed economy. Ninetieth Minute Sports Fan Shop is a
business that has been recently established, located at 19 Knutsford Blvd., Kingston 5, Jamaica. The firm
operates in the sports retail industry in Jamaica, providing our customers with sports goods from the most
refutable manufacturers. The company is involved with the selling of football and fitness equipment, shoes,
apparel and merchandise. Our mission statement is: ‘Providing high-quality sports equipment, at reasonable
prices, for optimum customer satisfaction’. We plan on becoming the leading sports retailer in Jamaica, with
plans in place, in the long run, to expand the business with new branches in strategic locations close to our
target market. With the supplying of the most in-demand stock to its consumers and also ensuring it has the
widest variety of goods to choose from, the firm holds the objective of becoming the leading sports retailer in
the entire Caribbean region.
Marketing will play a major role in the success of the business as we look to engage in a solid marketing plan
that will give the business a strong image in the industry, increased support from public funding, and to make
the general public more aware of business operations. This study will be focusing on this area.
5
Organization of Marketing Department
Roles/functions of personnel
Owner: The business owner invests some of the earnings from the business into the marketing department. The
owner sets and goals and clearly expresses what he expects of the marketing department. The owner relays
these expectations to the Marketing manager and gives the manager the tools needed to meet the quota.
Marketing Manager: The manager has many duties such as: managing and overseeing product, pricing and
distribution strategies, and participating in public relations activities. The manager has to be both analytical and
creative as he is the hub of the marketing department, the efficiency and productivity of the division. The
marketing manager supervises the other workers in the division, assigns them assignments and gives them
deadlines, according to the owner’s marketing plan.
Visual Displays attendant: Has the role of organizing the merchandise in the store and giving the interior an
organized look.
Advertising agent: A part-time worker on contract, whose role is to coin the advertisements that promote the
company. The agent is given instructions by the marketing manager as to what messages about the company are
to be conveyed, the manager also decides what format the advertisements are to be made for, whether for print,
radio, internet, billboard, TV, etc.
Owner
Marketing Manager
Visual Displays
attendant
Advertising agent
6
Market Research
Market Research: Is the process of gathering, analysing and interpreting information about a market, about a
product or service to be offered for sale in that market, and about the past, present and potential customers for
the product or service; research into the characteristics, spending habits, location and needs of your business's
target market, the industry as a whole, and the particular competitors you face.
The target population is the geographical area (country, region, town, etc.) covered by the target population as
well as the age group and gender. From our market research on the goods and services the firm wishes to
provide, certain trends have been noticed such as the kits (jersey, shorts), apparel and merchandise of football
clubs that have won several trophies are or usually in the top four positions in their respective European leagues
are normally more in-demand than that of clubs that have less to boast. Our target population segments are:
school-boys aged 9 to 18, a large majority of the male population as they are the ones who interested in sports,
females who are health conscious.
Price will also need to be researched and a strong pricing method that covers all costs and makes profit will
need to be designed.
The competitors are other firms that sell products that are similar to yours to your target market.
Sales Forecast (assess/describe)
We expect our sales to be extremely high as none of our competitors in the Jamaican market are currently
supplying the wide array of products we plan to sell. We estimate the global sports apparel market will grow at
a CAGR of 4% from 2012-2019. Nike, Adidas, Puma and Reebok are some of the key players in the industry.
Under Armour and Lululemon Athletica are rapidly growing. The global sports apparel market was worth $135
billion in 2012, according to our estimates. We expect the market to grow at a CAGR of 4% during 2012-2019
to reach $178 billion. Various factors are expected to drive market growth such as growing fitness
consciousness, rising income levels in developing countries, the growing popularity of sports apparel for
women as well as the trend towards stylish and comfortable sportswear.
Rising demand from Asia Pacific and Latin America due to growing economic prosperity in these regions
coupled with a trend towards leading a healthy lifestyle will be the key catalysts for market growth
Product (Branding and Packaging)
As a retailer (buying goods then reselling) the firm does not deal with the initial branding and packaging of the
products, but as we believe that branding is justifiable as it allows consumers to identify the goods of a
particular firm. We brand by:
 Placing a tag with the firm’s iconic ‘90’ logo, showing a 9 with the zero inside to represent 90, and
the name of the store on all wearable goods such as shirts.
 We place a sticker of the firm’s logo with the name on all goods that are sold in boxes.
7
Packaging
 We also sell all goods in bags with the firm’s logo, name and slogan on it.
Pricing
The strategy being used is one where first the average fixed costs are tabulated, for example the cost of
electricity for the stores’ and wages of employees. Then by using the cost to buy the gods as a base and adding
on the average fixed costs and an additional 10% the final cost can be determined. This pricing strategy is very
effective as it makes the goods being sold competitive while bringing profit.
Prediction of the future sales of a particular product over a specific period of time based on past performance of
the product, inflation rates, unemployment, consumer spending patterns, market trends, and interest rates.
Place Distribution Channels
As a retailer the business is an intermediary for many different sports brands as we buy their products from their
factories in China and Vietnam and resell them in Jamaica. The products are bought buy the headquarters in
Kingston and placed in a warehouse located at the Kinston wharf after being brought in to port. The goods are
then either sent to the HQ for sale or trucked to the other four branches in Jamaica located in Negril, Montego
Bay, Ocho Rios and Portmore. We also have contracts set up with smaller retailers in the island who buy from
our store and goods are also transported their by truck.
These channels are effective as all the goods necessary can be distributed to all the branches.
Limitations to thee channels are that shipping from China and Vietnam, coupled with the import duties can be
costly, forcing the firm to impose these costs on the consumers and making us less competitive in pricing. Also
as there is only one warehouse currently being owned which is close to only the Kingston branch the others
have increased prices to factor in the cost of truck delivery.
8
Promotion Mix
Ninetieth Minute Sports Fan Shop Ltd. advertises its sales and branch location by way of cell phone text,
newspaper, TV, radio and online advertisements. We specifically buy several of the advertising spots during
football matches’ pregame, half-time and post-game to reach our target audience. We believe that advertising is
a feasible investment that allows more possible consumers to become more aware of the business and its
operations.
To promote sales the branches of the firm host various football competitions such as five-a-sides while making
the participants wear football kits from the store. During this time live radio broadcasts are done advertising and
speaking of the firm’s products and services. Give-aways are also conducted for the customers attending these
events and fliers are handed out. The firm also sponsors footballers and uses them in pictures wearing our
products for media attention.
Government Regulation
The Bureau of standards in Jamaica set the regulations that impact the business these are:
 Products must be clearly labelled
 All imports must be inspected upon entry to port
 Code of practice for packaging
 Code of practice for product recall procedures
 The labelling of commodities
 Trade License
 Government Consumption Tax (GCT) needs to be added to all goods
Use of Technology
Technology is used for record-keeping, distributing wages and tracking the ships with goods. The Business uses
TV, radio and online advertisements as aforementioned because these technological devices are used by many
of the general public. The business also sends advertising of sales via text as many persons own cell phones and
can be marketed to. The firm stands by the choices it has made technological as it makes the overall running of
the business more efficient and it widens our market through advertising.
Customer Complaints
The firm has a customer complaint box at each of its branches, where the consumers make comments or
suggestions. Our policy is for the branch manager to read all the complaints every week and then they will be
brought up in the firm’s monthly meetings as we try to find ways to rectify customer’s concerns. Our policy is
that the customer is always first and that we need to make changes where necessary to suit their needs.
9
Ethical Issues
 Money laundering
 Copyright infringement
 False advertising
 Labelling
 Product safety
 Pollution
Conclusion
Ninetieth Minute Sport Fan Shop has been a successful business venture and marketing has played a major role
in the business successes as our marketing plan has given the business a strong image in the industry, increased
support from public funding, and has made the general public more aware of the businesses operations.
References
Bradley, Nigel Marketing Research. Tools and Techniques.Oxford University Press, Oxford, 2007 Marder, E.
The Laws of Choice—Predicting Customer Behavior, The Free Press division of Simon and Schuster, 1997.
Young, Charles E, The Advertising Handbook, Ideas in Flight, Seattle, WA, April 2005.
Kotler, Philip and Armstrong, Gary Principles of Marketing Pearson, Prentice Hall, New Jersey, 2007
Berghoff, Hartmut, Philip S., and Uwe S., eds., The Rise of Marketing and Market Research New York:
Palgrave Macmillan, 2012
Aamil, S. & Robinson, K., CXC Principles of Business with SBA Study Guide & Exercises, Carlong
Publishers(Caribbean) Ltd., 2005

POB SBA 2014

  • 1.
    1 PRINCIPLES OF BUSINESS SchoolBased Assessment ESTABLISHING A BUSINESS: MARKETING NINETIIETH MINUTE SPORTS FAN SHOP LTD. “Here the game never stops” NAME: Dominick Coke CANDIDATE NUMBER: 100016243 SUBJECT: Principles of Business SCHOOL: Campion College CENTRE NUMBER: 100016 DATE SUBMITTED: September 9, 2013 TERRITORY: Jamaica, W.I. TEACHER: Ms P. Morris
  • 2.
    2 PRINCIPLES OF BUSINESS SchoolBased Assessment ESTABLISHING A BUSINESS: MARKETING NINETIETH MINUTE SPORTS FAN SHOP LTD. NAME: Dominick Coke CANDIDATE NUMBER: 100016243 SUBJECT: Principles of Business SCHOOL: Campion College CENTRE NUMBER: 100016 DATE SUBMITTED: September 9, 2013 TERRITORY: Jamaica, W.I. TEACHER: Ms P. Morris
  • 3.
    3 TABLE OF CONTENTS ExecutiveSummary…………………………………………………………………………... ………… 3 Organization of the Marketing Department …………………………………………………………….4-5 Market Research…….………………………………………………………………………………...........6 Product…………………………………………………………………………………..…........................7 Pricing Strategy……………………………………………………………………………………………..7 Place (distribution channels) ……………………………………………………………………………… 7 Promotion Mix………………………………………………………………………………………..…… 8 Identify government regulations impacting on the business………………………………………………. 9 Use of technology…………………………………………………………………………………………..9 Customer complaints………………………………………………………………………………………. 9 Ethical issues……………………………………………………………………………………………… 9 Conclusion………………………………………………………………………………………………… 9 References………………………………………………………………………………………………... 10
  • 4.
    4 Executive Summary Ninetieth MinuteSports Fan shop is sports apparel and fitness equipment retail store, that seeks to supply high quality football, fitness and sports training equipment, shoes, apparel and merchandise to Jamaicans and eventually the greater Caribbean Region. The firm will pride itself on selling great products from the best sports brands at competitive prices. The entrepreneur is in the final stage of talks with Italian sports manufacturer, Kappa, for a possible partnership between the manufacturer and the recently established retail store. According to the deal, the firm will receive deals on shipments of selected Kappa stock. Meaning the store will be able to sell football apparel from world renowned European clubs, sponsored by Kappa such as Seri A (Italian first division) outfit AS Roma, English premier league outfit Fulham F.C., for national teams including, the Reggae Boyz themselves the Jamaica National team, and much more. You see, the problem is that the national sport of Jamaica is football and yet how can a country filled with so much fanatics and enthusiasts of the ‘beautiful game’, be so lacking in suppliers of the products that can allow the fans to show how proudly devoted they are to their favourite football clubs and to show support for their national team? How can a country, so proud of its great sportsmen and women and their achievements in the world of sport, have such insufficient mediums through which schools, gyms, track clubs, football clubs and sports facilities can purchase the needed fitness equipment that enhances the training and development of the next generation of sportsmen and women? Just how the country has reached this predicament, where there are little avenues to satisfy this great demand is completely mind-boggling. It is for this reason that Ninetieth Minute Sports Fan Shop has been created, delivering on the needs of Jamaican people to supply them with the sports equipment and apparel they so desperately are begging for. This company promises to always supply a wide variety of equipment such as exercise machines, weights, running cones, heart-rate monitors and much more. We promise to always be in stock of football kits from the most popular clubs, to allow our consumers to gain that next level of satisfaction when watching and supporting their favourite clubs. They will also be provided with the high-quality football gear: boots, jerseys, socks, shin guards, you name it! We promise to provide everything that is required to make playing the game more enjoyable and safe. The firm is a sole trader company operating in a mixed economy. Ninetieth Minute Sports Fan Shop is a business that has been recently established, located at 19 Knutsford Blvd., Kingston 5, Jamaica. The firm operates in the sports retail industry in Jamaica, providing our customers with sports goods from the most refutable manufacturers. The company is involved with the selling of football and fitness equipment, shoes, apparel and merchandise. Our mission statement is: ‘Providing high-quality sports equipment, at reasonable prices, for optimum customer satisfaction’. We plan on becoming the leading sports retailer in Jamaica, with plans in place, in the long run, to expand the business with new branches in strategic locations close to our target market. With the supplying of the most in-demand stock to its consumers and also ensuring it has the widest variety of goods to choose from, the firm holds the objective of becoming the leading sports retailer in the entire Caribbean region. Marketing will play a major role in the success of the business as we look to engage in a solid marketing plan that will give the business a strong image in the industry, increased support from public funding, and to make the general public more aware of business operations. This study will be focusing on this area.
  • 5.
    5 Organization of MarketingDepartment Roles/functions of personnel Owner: The business owner invests some of the earnings from the business into the marketing department. The owner sets and goals and clearly expresses what he expects of the marketing department. The owner relays these expectations to the Marketing manager and gives the manager the tools needed to meet the quota. Marketing Manager: The manager has many duties such as: managing and overseeing product, pricing and distribution strategies, and participating in public relations activities. The manager has to be both analytical and creative as he is the hub of the marketing department, the efficiency and productivity of the division. The marketing manager supervises the other workers in the division, assigns them assignments and gives them deadlines, according to the owner’s marketing plan. Visual Displays attendant: Has the role of organizing the merchandise in the store and giving the interior an organized look. Advertising agent: A part-time worker on contract, whose role is to coin the advertisements that promote the company. The agent is given instructions by the marketing manager as to what messages about the company are to be conveyed, the manager also decides what format the advertisements are to be made for, whether for print, radio, internet, billboard, TV, etc. Owner Marketing Manager Visual Displays attendant Advertising agent
  • 6.
    6 Market Research Market Research:Is the process of gathering, analysing and interpreting information about a market, about a product or service to be offered for sale in that market, and about the past, present and potential customers for the product or service; research into the characteristics, spending habits, location and needs of your business's target market, the industry as a whole, and the particular competitors you face. The target population is the geographical area (country, region, town, etc.) covered by the target population as well as the age group and gender. From our market research on the goods and services the firm wishes to provide, certain trends have been noticed such as the kits (jersey, shorts), apparel and merchandise of football clubs that have won several trophies are or usually in the top four positions in their respective European leagues are normally more in-demand than that of clubs that have less to boast. Our target population segments are: school-boys aged 9 to 18, a large majority of the male population as they are the ones who interested in sports, females who are health conscious. Price will also need to be researched and a strong pricing method that covers all costs and makes profit will need to be designed. The competitors are other firms that sell products that are similar to yours to your target market. Sales Forecast (assess/describe) We expect our sales to be extremely high as none of our competitors in the Jamaican market are currently supplying the wide array of products we plan to sell. We estimate the global sports apparel market will grow at a CAGR of 4% from 2012-2019. Nike, Adidas, Puma and Reebok are some of the key players in the industry. Under Armour and Lululemon Athletica are rapidly growing. The global sports apparel market was worth $135 billion in 2012, according to our estimates. We expect the market to grow at a CAGR of 4% during 2012-2019 to reach $178 billion. Various factors are expected to drive market growth such as growing fitness consciousness, rising income levels in developing countries, the growing popularity of sports apparel for women as well as the trend towards stylish and comfortable sportswear. Rising demand from Asia Pacific and Latin America due to growing economic prosperity in these regions coupled with a trend towards leading a healthy lifestyle will be the key catalysts for market growth Product (Branding and Packaging) As a retailer (buying goods then reselling) the firm does not deal with the initial branding and packaging of the products, but as we believe that branding is justifiable as it allows consumers to identify the goods of a particular firm. We brand by:  Placing a tag with the firm’s iconic ‘90’ logo, showing a 9 with the zero inside to represent 90, and the name of the store on all wearable goods such as shirts.  We place a sticker of the firm’s logo with the name on all goods that are sold in boxes.
  • 7.
    7 Packaging  We alsosell all goods in bags with the firm’s logo, name and slogan on it. Pricing The strategy being used is one where first the average fixed costs are tabulated, for example the cost of electricity for the stores’ and wages of employees. Then by using the cost to buy the gods as a base and adding on the average fixed costs and an additional 10% the final cost can be determined. This pricing strategy is very effective as it makes the goods being sold competitive while bringing profit. Prediction of the future sales of a particular product over a specific period of time based on past performance of the product, inflation rates, unemployment, consumer spending patterns, market trends, and interest rates. Place Distribution Channels As a retailer the business is an intermediary for many different sports brands as we buy their products from their factories in China and Vietnam and resell them in Jamaica. The products are bought buy the headquarters in Kingston and placed in a warehouse located at the Kinston wharf after being brought in to port. The goods are then either sent to the HQ for sale or trucked to the other four branches in Jamaica located in Negril, Montego Bay, Ocho Rios and Portmore. We also have contracts set up with smaller retailers in the island who buy from our store and goods are also transported their by truck. These channels are effective as all the goods necessary can be distributed to all the branches. Limitations to thee channels are that shipping from China and Vietnam, coupled with the import duties can be costly, forcing the firm to impose these costs on the consumers and making us less competitive in pricing. Also as there is only one warehouse currently being owned which is close to only the Kingston branch the others have increased prices to factor in the cost of truck delivery.
  • 8.
    8 Promotion Mix Ninetieth MinuteSports Fan Shop Ltd. advertises its sales and branch location by way of cell phone text, newspaper, TV, radio and online advertisements. We specifically buy several of the advertising spots during football matches’ pregame, half-time and post-game to reach our target audience. We believe that advertising is a feasible investment that allows more possible consumers to become more aware of the business and its operations. To promote sales the branches of the firm host various football competitions such as five-a-sides while making the participants wear football kits from the store. During this time live radio broadcasts are done advertising and speaking of the firm’s products and services. Give-aways are also conducted for the customers attending these events and fliers are handed out. The firm also sponsors footballers and uses them in pictures wearing our products for media attention. Government Regulation The Bureau of standards in Jamaica set the regulations that impact the business these are:  Products must be clearly labelled  All imports must be inspected upon entry to port  Code of practice for packaging  Code of practice for product recall procedures  The labelling of commodities  Trade License  Government Consumption Tax (GCT) needs to be added to all goods Use of Technology Technology is used for record-keeping, distributing wages and tracking the ships with goods. The Business uses TV, radio and online advertisements as aforementioned because these technological devices are used by many of the general public. The business also sends advertising of sales via text as many persons own cell phones and can be marketed to. The firm stands by the choices it has made technological as it makes the overall running of the business more efficient and it widens our market through advertising. Customer Complaints The firm has a customer complaint box at each of its branches, where the consumers make comments or suggestions. Our policy is for the branch manager to read all the complaints every week and then they will be brought up in the firm’s monthly meetings as we try to find ways to rectify customer’s concerns. Our policy is that the customer is always first and that we need to make changes where necessary to suit their needs.
  • 9.
    9 Ethical Issues  Moneylaundering  Copyright infringement  False advertising  Labelling  Product safety  Pollution Conclusion Ninetieth Minute Sport Fan Shop has been a successful business venture and marketing has played a major role in the business successes as our marketing plan has given the business a strong image in the industry, increased support from public funding, and has made the general public more aware of the businesses operations. References Bradley, Nigel Marketing Research. Tools and Techniques.Oxford University Press, Oxford, 2007 Marder, E. The Laws of Choice—Predicting Customer Behavior, The Free Press division of Simon and Schuster, 1997. Young, Charles E, The Advertising Handbook, Ideas in Flight, Seattle, WA, April 2005. Kotler, Philip and Armstrong, Gary Principles of Marketing Pearson, Prentice Hall, New Jersey, 2007 Berghoff, Hartmut, Philip S., and Uwe S., eds., The Rise of Marketing and Market Research New York: Palgrave Macmillan, 2012 Aamil, S. & Robinson, K., CXC Principles of Business with SBA Study Guide & Exercises, Carlong Publishers(Caribbean) Ltd., 2005