1. Date: July 07, 2008
Sub: Proposal on Back to school / Back to College
Time duration: Week 26-34, (July 19 – Sept 19)
Peak time duration: week 27-31(Aug 2008)
Potentiality of the market
Total Students in Muncie: 20,000 + 13,000 = 33,000/
Generally 25 % of new students are to be enrolled: 33,000/4 = 8250
Out of remaining 75 % of students, at least 50 % students are in need of new items: 33000-8250=24750/2=12375
New customer because of BTS/BTC season: 20625
Possibility of new Business
According to company, student spends $ 956/-
But if new student spends $ 750 then possibility of new business is 8250 x $ 750 = $ 6,187,500/-
Returning student spends $ 250 then possibility of new business is 12375 x $ 250 = $ 3,093,750/-
Total new business in the market due to BTS/BTC season is = $ 9,281,250/-
Business at the store during the last BTS/BTC season
July 2007: $ 5,850.000
Aug 2007: $ 7,180,000
Sept 2007: $ 6,173,000
In Retail business there is an increase of 5 to 6 % over the past year,
Actual business 07 Increase 6 % Budget in 2008
July 5,850,000 351,000 6,201,000
Aug 7,180,000 430,800 7,610,800
Sept 6,173,000 370,380 6,543,380
Total 19,203,000 1,152,180 20,355,180
Avg 6,401,000 384,060 6,785,060
During this year so far we are averaging sales around $ 6,500,000 per month. With the same rate of business we are
going to increase only $ 900,000 but the potentiality is $ 9,000,000/-
Plan to acquire more business during BTS/BTC season.
During the BTS/BTC season all most all department has increase the sales.
Organized planning will help us to increase the sales
Every department has certain category of an item of which sales has a high impact on total department sales.
Certain high selling items of the department keep it stock during the BTS/BTC season
Personal approach to educational institution will help us to divert students to our store.
Special fast processing counter of Wal-Mart credit card also help us to increase the sales and the flow of credit card
applications.
Friendly and courteous approach will help us to increase customer flow.