Mohammad Ali Jinnah University

TERM REPORT PROJECT

Business Plan
H Sports Centre - HSC

Presented By:
Murtaza Arif Ali (FA19-BBAP-0054)
Ahmer Tariq Qureshi (FA19-BBAP-0033)

Subject:
Entrepreneurship

Presented to:
Ms. Asma Abdul Rahim chang
Instructor, Mohammad Ali Jinnah University.

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Contents

EXECUTIVE SUMMARY:............................................................................................................4
INDUSTRY OVERVIEW:..............................................................................................................5
BUSINESS PLAN/STRUCTURE:..................................................................................................5
VISION STATEMENT:..................................................................................................................6
MISSION STATEMENT:...............................................................................................................6
PRODUCTS AND SERVICES:......................................................................................................6
OUR SERVICE OFFERINGS:......................................................................................................6
KEYS TO SUCCESS:.....................................................................................................................7
BARRIERS TO ENTRY:................................................................................................................7
MARKET ANALYSIS:...................................................................................................................7
MARKET TRENDS:............................................................................................................................7
MARKETING, SALES AND PUBLIC RELATION PLAN:.......................................................................8
SWOT ANALYSIS:.........................................................................................................................9
STRENGTH:..................................................................................................................................10
WEAKNESS:..................................................................................................................................10
OPPORTUNITIES:..........................................................................................................................10
THREAT:......................................................................................................................................10
BUSINESS MODEL CANVAS.....................................................................................................11
PAYMENT OPTIONS..................................................................................................................12
TARGET MARKET:....................................................................................................................12
SOURCES OF INCOME:.............................................................................................................12
STAFF:..........................................................................................................................................13
FINANCIAL PLANNING:...........................................................................................................13
SALES FORECAST:....................................................................................................................13
EXIT STRATEGY:.......................................................................................................................14
CONCLUSION:............................................................................................................................15
REFERENCES:............................................................................................................................16

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Executive Summary:

H Sports Centre (HSC) is a local retailer shop situated in Hyderi, Karachi that will offer
complete package of sports items, from sports wears to sports goods, technical material to
general usage and supporting items. HSC will also be offering an exceptional online facility
through web and social media.

HSC is not just entered in market for making profit but for creating a “Made in Pakistan”
brand also.

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Industry Overview:

Passion is associated with the sports in Pakistan; there was a time when only limited sports
were played in the country i.e. Cricket, Hockey and Football. Since last one decade country
and its peoples has diversified their attention from limited sports to multiple sports like
boxing, swimming, squash, tennis, bike and car racing and numerous indoor and outdoor
games. Media needs to be acknowledging for creating awareness for new and growing sports
activities as well as private brands for sponsoring the athletes.

The Cricket goods manufacturing industry is expected to experience remarkable growth due
to the PSL and other club level cricket meanwhile for the football, private brands are
supporting club level football. Other sports activities are also expected to up rise in the near
future.

Sialkot is said to be the hub of sports goods but they are just manufacturing the goods and
could not launch them self as an individual brand of Pakistan. They are working for
international brands such as Adidas as a third party contractor. For sportswear, Karachi and
Faisalabad also stitch as a third party contractor.

Business Plan/Structure:

Although we are new in this business, we are very much aware of the role that the foundation
of a business plays in its success. As a result of this, we intend to get it right with our service
from the start and manufacturing in our next step.

Since last two decades, innovations in technology have gained a very prominent place in
every business. As a result of this, lots of customers most of the times do not visit at any
store. So for this, in the coming times, we will also create pages on every social media
platform, and a website will also be created to capture online market in the entire country. For
international market capturing, platform of Amazon, EBay and Alibaba will be used.

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Vision Statement:

To be the global leader of sportswear and technology.

Mission Statement:

To build a brand that will be big enough to get franchised in just five years of operation. We
are also aiming to become a benchmark by that quality of goods will be measured globally.

Products and Services:

 Goods for all kind of sports

 Technical equipment’s
 Sportswear
 Trophies
 Kits and t-shirts of all countries and clubs
 Safety equipment’s
 Sports shoes
 Gym wear
 Special order services

Our Service Offerings:

HSC is a medium size local shop for sports goods and will also be registered as per the law.
HSC will offer wide range of sports good s and sportswear for all ages and other
complementary services such as club T-shirts, PSL kits. We intend giving our customers
every reason to always come to us which is why we have customized our services, we want to
be known as the one stop solution where ready to wear and special order services both can be
run that truly care for customers.

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Our intention of starting our business is to favorable compete in the industry and of course to
make profits from the industry and we will do all which is permitted by the law in the
Pakistan to achieve our aim and business goal.

Keys to Success:

Our keys to success are:

- Excellent product and service that will build and maintain customer loyalty.
- A business location that will assure high visibility and a high flow of customers.
- Proven management ability to successfully run a similar business.
- Our commitment to continuous improvement and total quality services.

Barriers to entry:

HSC is a medium size business and has no such barriers to entry from the government in
Pakistan especially in Karachi. The only thing will require running the business productively
is sustainability, patience and financial resources and creating customer loyalty and
recognition. Lacking these advantages, it would not easy for businesses to strive with already
existed large brands. By considering current circumstances due to COVID-19, lockdown can
be the possible barrier of entry.

Market Analysis:

Market Trends:

Current market trends indicate that now more people shop via mobile applications, and
websites access rather than visiting the shops physically. Sports events and activities are
increasing rapidly in the country not only from the government and respective board’s level.
Numerous brands are also encouraging public to take parts in sports activities.

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The trend in industry is that the most of the businesses are in the bid to survive the recent
global economic meltdown included additional services to their core service offerings. No
doubt, the industry trends have indeed changed gears from the last year due to COVID-19.
Downturn is faced because of reduction in working hours and working days. All type of
sports activities is stopped.

Marketing, Sales and Public Relation Plan:

Good enough, there is no hard and fast rule on how to advertise. The challenge is that most
medium size businesses are not as proactive as we intend to be when it comes to effective
publicity and advertising.

We will ensure that we leverage on all conventional and non – conventional publicity and
advertising technique to promote. Here are the platforms we intend leveraging on to promote
and advertise our business.

The marketing would be done by using following channels:

 Google AdSence
 Facebook
 Instagram
 Twitter
 Sports celebrity shoot-out
 Encourage our loyal customers to help us use Word of Mouth mode of advertisement
(referrals).
 Promote our business online via our official website.
 Sponsor relevant community programs.
 Distribute our fliers and handbills in sports events and activities.

Customer loyalty, excellent customer service, honesty and quality would be our additional
marketing approach.

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Sales would be driven by the output of our services and via referral from our satisfied
customers. We are quite aware of how satisfied customers drive business growth especially
businesses on medium scale.

HSC has an advantage of strategic location and we are going to utilize the opportunities of
our location by maintaining a sound display which will give us more customer attention,
visibility and enable us to access our target market easily. Our goal is to grow HSC to
become the leading sports goods Chain Centre in entire Pakistan. By keeping in view our
future target we have mapped out strategy that will help us take advantage of the available
market and grow to become a major force to reckon within the industry.

HSC is all set to make use of the following marketing and sales strategies to attract clients;

- Use friends and family to spread word about our business.

- Leverage on referral networks such as local clubs, bodies and associations that will
attract clients who would need our customized products.
- Advertise our business in the local clubs, associations and sports bodies.
- Encourage the use of word of mouth marketing from loyal and satisfied clients.
- Lastly, we need an online presence; a good website and ensure that it is Search Engine
Optimization (SEO) Compliant if you intend to achieve a good number of visitors that
would patronize your business. The truth is that, a website ensures that our business
remains visible to your existing and potential customers.

Pricing Strategy:

Our pricing system is going to be based on what is obtainable. We don’t intend to charge
more (except for premium and customized services) but will intend to charge less than our
competitors to capture more market.

Be that as it may, we have put plans in place to offer discount services once in a while and
also to reward our loyal customers especially when they refer clients to us. The prices of our
services will be same as what is obtainable in the open market.

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SWOT Analysis:

Medium Size businesses can easily generate sales with little stress as long as they are well
positioned and equipped to carry out their offerings. We are building a standard business with
variety of complimentary services which is why SWOT Analysis is mandatory to perform.

Strength:

Aside from the large range of variety and highly reliable quality HSC is located in a densely
populated residential area of Karachi and our location is in fact one of our major strength.

Weakness:

HSC is a new business which is owned by individuals, and we may not have the financial
muscle to sustain the kind of publicity we want to give our business. As a new business, we
are also quite aware that it will take time for us to build trust with our clients.

Second and the most important thing which needs to put on table are the lockdown and
government restrictions due to COVID which can affect our business and potential
customers.

Opportunities:

We are centrally located in one of the busiest areas of Karachi and our concept positioned us
to be a one stop shop and we are open to all the available opportunities that the city has to
offer. Karachi is the hub of all activities and all kinds of communities and peoples do live
here are having diversified choices regarding sports. Our business is not focusing on a single
sport but we are targeting all the sportswear and their goods.

Threat:

Some of the threats that are likely going to confront us are unfavorable government policies,
seasonal fluctuations, demographic / social factors, downturn in the economy which is likely
going to affect consumers spending and of course emergence of new competitors within the
same location.

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 Business Model Canvas

Key Partners Key Activities Value Customer Relationship Customer

- Technical Propositions - Google AdSense Segments
-Suppliers
equipment’s - Facebook
-Distributers
- Sportswear - Instagram
- Trophies - Twitter
- Kits and t- - Celebrity shoot-out
shirts of all - Loyal customers for
countries and Word of Mouth
clubs - Online via our
- Safety official website.
equipment’s - Distribution of fliers
- Sports shoes in sports events and
- Gym wear activities.
- Special order
services
Key Resources Channels
- Online
- Retailers
- Distributors
- Volunteers
- Clubs

Cost Structure Revenue Streams

Furniture and fixture 80,000/-
First Fiscal Year: 1,200,000
Inventory (Sportswear) 200,000/-
Inventory (Sports goods) 400,000/- Second Fiscal Year: 1,850,000
Software and equipment’s 100,000/-
Advance rent 36,000/- Third Fiscal Year: 2,500,000

Salaries expenses 100,000/-

Other expenses 150,000/-
Total Capital Equipment 1,066,000/-

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Payment Options

Payment policy will be all inclusive because we are quite aware that different clients would
prefer different payment options as it suits them. Here are the payment options that we will
make available to our clients;

- POS machine, debit, credit and master card

- Online bank transfer
- Mobile transfer i.e. Jazz Cash, Easy Paisa and other services
- Cash payments

Target Market:

Before choosing a location we have conducted our feasibility study, market survey and then
we were able to identify those who will get benefit greatly from our product offerings. Below
is a list of the people and organizations that our car rental service is designed for;

- Sports athletes
- Sporting club owners and administrations
- Sporting bodies

Sources of Income:

HSC is established with the aim of maximizing profits along with brand recognition, gaining
of customer loyalty and creating a brand of Pakistan and we are going to go all the way out to
ensure that we do all it takes to attract both individual clients and corporate clients on a
regular basis.

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Staff:

For the sales team, we will hire two salesmen.

Financial Planning:

Owners' Investment:
Owners I 50% 500,000/-
Owner II 50% 500,000/-
Total Investment 1,000,000/-.

Expenditure Breakup:
Furniture and fixture 80,000/-
Inventory (Sportswear) 200,000/-
Inventory (Sports goods) 400,000/-
Inventory management software and equipment’s 100,000/-
Advance rent 36,000/-
Salaries expenses 100,000/-
Other expenses 150,000/-
Total Capital Equipment 1,066,000/-

Sales Forecast:

We are well positioned to take on the available market in Karachi, Pakistan and we are quite
optimistic that we will meet our set target of generating enough income / profits from the first
six month of operations and grow business and our customer base.

We have been able to critically examine the market and we have analyzed our chances in the
industry and we have been able to come up with the following sales forecast. The sales
projection is based on information gathered on the field and some assumptions that are
peculiar to similar setups in Karachi, Pakistan.

Below is the sales projection, it is based on the location of our business and of course the
wide range of related services that we will be offering.

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First Fiscal Year-: 1,200,000

Second Fiscal Year-:1,850,000

Third Fiscal Year-: 2,500,000

This projection is done on the basis of current circumstances, despite of COVID and
lockdown, economy is expanding, businesses are growing and especially government is
forcing peoples to get themselves vaccinated and hoping that within one year all restrictions
regarding reduction in business hours and days will be lifted. Sports activities will resume
soon and the whole world will be back on the track just like before 2020.

Further hoping that there will be no major downfall in the economy and political stability will
be maintained and there won’t be any major competitor offering same as we do within same
location. Please note that the above projection might be lower and at the same time it might
be higher.

Exit Strategy:

Whenever any business is started, the first thing comes in mind is that what if things doesn’t
go as planned, what if there is any major economic meltdown, what if the situation of COVID
getting worst and government imposed more lockdown, what if any political instability
occurs? These are the questions which make the investor to think twice before starting a new
setup and then the investor think about the exit strategy.

We have projected initial six months as the honeymoon period in which all cost from utility
to salaries and running expenses will cover from our investment’s pocket. The period for next
1.5 years will be the period where we will have to decide whether to continue this business,
expand, shrink or evaporate. In case of failure, the remaining inventory can be sold out to any
other shops or can also be sold out to any person who is willing to buy these products.

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Conclusion:

Competition in the business especially on the medium scale is high, every shop owner wants
to earn more and more and create his market goodwill. In order to stay in the market we will
have to keep the unique inventory at lower cost, will also have to create a social circle with
the local associations, clubs and bodies so we can have more and more sell and a strong circle
of reference.

HSC is confident that our business can achieve its aggressive sales forecasts, generating
approximate sales. In addition, we have also carefully considered the market, potential
customer base, and its ability to grow its sales average to capture the maximum market. HSC
has the potential to gain lucrative returns.

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References:

https://punjab.gov.pk/sialkot_key_industry

https://tdap.gov.pk/wp-content/uploads/2020/10/Sports-Goods.pdf

https://www.bplans.com/sporting-goods-retail-store-business-plan/products/

http://langssports.com/goods

https://www.sectorsdonut.co.uk/sectors/retail-wholesale/sports-shop/what-to-sell

https://www.bplans.com/sporting-goods-retail-store-business-plan/market-analysis-summary/

https://www.sectorsdonut.co.uk/sectors/retail-wholesale/sports-shop/what-to-sell

https://www.lifehack.org/articles/productivity/5-ways-to-overcome-success-barriers.html

https://www.coursehero.com/file/p3hm36q/Porters-Five-Force-Model-Barriers-to-entry-o-
The-sporting-goods-industry-for/

https://www.bplans.com/sporting-goods-retail-store-business-plan/strategy-and-
implementation-summary/

https://blogs.constantcontact.com/sports-marketing-strategies/

https://www.mplans.com/sports_equipment_marketing_plan/situation_analysis_fc.php

https://www.amazon.com/Sporting-Goods-Store-Analysis-Business/dp/B008SVBOKI

https://www.wicz.com/story/43226494/global-sports-equipment-and-apparel-market-swot-
analysis-key-indicators-global-growth-opportunities-trends-regional-overview-leading-
company-analysis

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