The Jersey Spot

Bussines Plan

Business Plan
The Jersey Spot

Balam Enrique Ponce Tequida

The Jersey Spot
Del Canal 5120-2
La Escondida
Tijuana, BC 22106
664-60-89-008
664-3747-209
thejerseyspot@gmail.com

The Jersey Spot

Bussines Plan

I.

Table of Contents

I.

Table of Contents.......................................................................................2

II.

Executive Summary...................................................................................3

II.

General Company Description..................................................................4

IV.

Products and Services...............................................................................6

V.

Marketing Plan..........................................................................................7

VI.

Operational Plan......................................................................................11

VII. Startup Expenses and Capitalization......................................................13

VIII. Appendices...............................................................................................24

The Jersey Spot

Bussines Plan

II. Executive Summary

This store is called the Jersey Sport, it is dedicated to selling soccer jerseys
from all the national teams and the most popular soccer clubs in the world,
but we have a policy that if we do not have the jersey you want we will get it
for you.
Our market is only in Mexico and the US because we want to start testing how
the business runs in these countries and if its goes right we will take the risk
to grow bigger and sell also in Europe where a bigger market exists due to the
popularity of soccer in those countries.
The store it is only going to sell online maybe at first, it will be reconsidered if
there is a need for a physical store later.
We want to start the business with a loan of $100,000 to make the dream real
of running the business. This money will be spent in a great marketing
campaign and in setting up our facilities and the website and all the related
matter for security and hosting of the website.

The Jersey Spot

Bussines Plan

III. General Company Description

The Jersey Spot is a store specialized in selling soccer jerseys, from both
national teams and soccer clubs from different teams all over the world.
Mission
We want to create a place where fans can purchase their favorite jerseys
easily, rapidly and with the lowest prices in the market.
Vision
We want that people get to know us, and whenever they need to buy a soccer
jersey, they think in us first of all in order to acquire their jersey.
Goals and objectives
Our main goal is to become an icon in the soccer jerseys retailing industry,
and how do we plan to accomplish this?

Maintain a certain level of sales

Always have the latest products in the market
Achieving full satisfaction of our costumers

Business Philosophy
In The Jersey Spot we are here to serve our customers because they are our
main concern. Costumers total satisfaction is our pleasure.
It is our knowledge that soccer is the worlds most popular sport with millions
of fans in many places this is why there are no limits from who are we
targeted, anyone can be a costumer of us.
Soccer apparel industry
This industry goes from t-shirts to rain coats but the article that is the most
sold all over the world are the jerseys. Soccer fans love to wear the same skin
that their team is wearing at that season and thanks to the globalized world
we live now, it is a growing tendency for people to cheer for teams from other
countries besides theirs.

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Bussines Plan

The soccer jerseys industry has some moments when the sales increase
notoriously:
Every new season, which is once or twice a year depending the soccer league
Every time a new cup stars, this could be several times depending the country
but in general there are 5 great cups worldwide that make jerseys a hot item
at that moment.
We have Eurocup, Libertadores tournament, Champions League, Soccer clubs
World Cup and the World Cup. These events are celebrated every year and
others every fourth year like the Olympics.
But the great opportunity that selling soccer jerseys has is that sales are made
the whole year and it is an industry that is growing due the increasing
popularity of soccer in countries like the U.S. that in previous years the fans
were more inclined by other sports like baseball, football or basketball.

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Bussines Plan

IV. Products and services

The products that are going to be sold in the jersey store are authentic
replicas from the jerseys that professional player would wear on a game.
Every jersey has its own unique characteristics, in the website each jerseys
when we click on it, it displays a brief description of the jerseys, and at the
bottom comes a list of what does the jersey has attached to it, what material is
made of and other special information of the it. (There is an example of the
screen that displays with the information of each jersey after clicking on it,
consult Appendix I)
Normally soccer jerseys manage a standardized price regarding where they
are being sold, we are sure that if we reduce the sale prices of the products
sold, we can gain the attention of the market due to the high prices that flow
in the market.
One services that we think that our clients would be grateful of is that we are
going to offer the chance to customize your jersey with your name and a
number for free, normally this service is charged up to $20 dollars extra of the
price of the jersey.
All of our jerseys are priced at the low price of 80 dollars which is about $10
to $20 dollars less than the price than can be generally seen in the market.
We manage a standardized price for our jerseys in order for costumers to
already know how much our products costs, another great feature that our
clients will see is that at the end of every season or cup when the jersey that
that the team is using is replaced by a new one, the old one would be put in
sale with great discounts that will me mentioned via our newsletter, social
media and in the home screen for everyone to know about the special sale.

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Bussines Plan

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Bussines Plan

V.

Marketing Plan

Soccer jerseys are part of a multi-billion industry, as being part of the most
popular sport in the world, there is no concern in thinking what if my products
does not sell good, because soccer jerseys sell by itself and more if they are
customized of a very popular team or player at the moment.
As the charts in Appendix II show, the average sales from 5 different seasons
from the worlds best jersey selling teams, the numbers of the revenues is too
high, we are talking of almost 8 billion dollars of sales in just jerseys from 8
different teams, there are statics from the whole sale of every major team in
the world but if we think about it would be an enormous amount of money.
As a business man I have identified that here in the region exists a major
problem in satisfying the demand of soccer jerseys every new season, it is
easier to get a cheap replica and it is not because of the price, the main
reason is because there are no original jerseys in the stores to satisfy the
demand.
Due to the nature of our store it is going to be easier to help with this problem
because, as a website people will not have to make lines to get their jersey,
they just have to order it from us and wait ot the jersey to arrive and we can
arrange deals to get the merchandise the same day it releases in the market in
order for clients to pre order it.
In Mexico a few year ago the sales online where not that popular but since
shipping companies like FedEx or UPS arrived at the country. As Statista
portal mentions on their website (Appendix III) online sales have grown for 6
billion dollars in 2012 to 12 billion dollars in sales in 2014, that the double of
sales in just two years.
Price
Jerseys are priced regularly for retailers about the half I of its selling price,
our suppliers will sell us the jerseys between $35 and $45 dollars per jersey, in
order to make profit we are going to sell them at the standard price of $80
dollars per jerseys to differentiate from the competence prices which fluctuate
between $90 and $100 dollars per jerseys.

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Bussines Plan

Place
We do not have a physical store at the moment; we are going to specialize in
selling online for the moment only the U.S and Mexico. Our offices and
warehouse are localized in the city of Tijuana and a second warehouse in San
Diego, CA; this is for handling more easily the different orders among both
countries. There exists the plan of expanding to other countries specially in
South America and Europe where the market is pretty big, but due to
economic issues this could wait until we are better positioned in the market.
Promotion
Because we are a website we think that the best way to promote us is by using
the power of social media, we can find in Facebook a great tool to promote
ourselves and get people to know us, other thing that we are going to do is to
give flyers outside stadiums and soccer matches because the people in those
events are the main market we want to target.
Product
The jerseys being sold by us are directly shipped from the manufacturer, we
do no fabric any jerseys, the only thing that we do is that we provide the
services of customizing the jerseys. Jerseys are from worldwide known brands
as Nike, Adidas, Under Armor and Puma among others.
We will offer from size S to XL for men, at first we are only going to sell
jerseys for man, but we expect that by the end of the first year of business we
will introduce also jerseys for women and late in the next year jerseys for kids.
Each brand offer different quality and specifications, but we as a store offer
the warranty that if the buyer does not like the quality of the jersey we will
refund the value of it.
Target Market
At this moment our main market are men from 15 to 50 year which are the
most possible one that would be able to buy a jersey, but in general anyone
who is a soccer fan or want to buy a gift for someone would be perfect for us,
the most obvious market would be anyone with a credit card because there
are going to be able to buy from us due to the need of one in order to order
online.

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Bussines Plan

We expect that in a year our market could be also target not only for men but
also for those women who we know love soccer as much as we do.
Competition
In the soccer apparel industry there is a lot of competence, for example every
brand has its unique stores where they sell only products of their brand. In
other hand there are retail store where they sell goods from all kinds of sports
including soccer jerseys. Also every teams has a store from where their
merchandise is sold, normally these stores are in their respective stadiums.
After visiting a several sites, I determined that there are two main competitors
that the store could have, one is from Mexico and the other from the US.
In Mexico we have Innova Sport which a sport goods retailer with physical
stores all over the country, with the achievement of having the biggest store in
the Latin America, they does not only have physical stores, they also sell their
goods online at http://www.innovasport.com/
In the US I determined that the biggest competitor is World Soccer Shop. This
store operating from Birmingham, Alabama has grown with all the alliances made with some of the world
greatest soccer clubs, with warehouses and presence all over the globe.

I made this comparison chart in order to make more clear the differences
between me and my competence.
Table 1: Competitive Analysis

Me

Strength

Weakness

World
Soccer
Shop

Price

All jerseys
are $80
dollars

Lower price
than
competence

Less profit
per sale for
me

In a range
of $90 to
$100
dollars

In a range
of $80 to
$100
dollars

Quality

100%
guaranteed
quality

Products
ship
directly
from the
fabricant

100%
guaranteed
quality

100%
guaranteed
quality

Selection

If we do not
have it, we
will get it
for the
costumer

Great
policies
regarding
the
inventory

Our policies
may be
hard for us
to maintain

Its big but,

not that
much

Little
selection

FACTOR

Innova
Spor

Importan
ce to
Customer

The Jersey Spot

FACTOR

Me

Bussines Plan

Strength

We will
have be
benefit of
the doubt
for new
clients

World
Soccer
Shop

Innova
Spor

Importan
ce to
Customer

We are new,
so it is hard
create trust
in the
market

People
already
know them

If
something
goes wrong
there a
physical
store to go
to solve
problems

Weakness

Reliability

We will
offer many
warranties
so clients
trust in us.

Location

Only in the
US and
Mexico

Ability to
focus in a
littler
market

Little reach
in the
market

Worldwide
presence

Only in
Mexico

Sales
Method

Credit card
and PayPal

The same
as our
competence

Need of a
credit cart

Credit card
and PayPal

Credit card
and cash

Word Soccer Shop represents a high level of competence for us due to their 15
years old experience and the reach that they have, the things that help us
battle with them is that the products they sell, are different depending where
are you buying.
Innova Sport, does not seems to be that hard beat, they do not have that great
support in every store so is in those stores where we can try to be better than
them to, due to the national presence just in Mexico we do not have to care for
them in the US market.
Niche
The Jersey Spot focuses in selling soccer jerseys to those fans that want to
look the way they teams do, our niche targets the sporting goods industry and
its fans specifically the soccer fans, in the countries of Mexico and the United
States
Promotion Strategy
We want to attack directly our market by sending people to give out flyers
with information and maybe some discounts in our website outside the main
venues or stadiums were soccer matches are being held, because that is
where all of our possible buyers will be possibly. we will need to be present in

The Jersey Spot

Bussines Plan

universities and colleges were the young people of our generation are present
and maybe gain their attention with free stuff and music.
Social marketing via social networks will be also very important for us, so this
is why we will hire an agency in each country in order for them to find the
best way to attack the market.
Promotional budget
Our key for success will be to enter with a good selling spree in the market, is
they know us at the beginning they will stay with us surely, so this is why we
need to invest a lot of money in this area until we are already in mouth of
everyone and they will promote us socially.
The idea is to spend among $10,000 to $15,000 dollars in publicity between
both countries; this money will be invested in covering the fees of the
agencies, in paying for trips to the stadiums and universities, printing flyers
and in the products that we are giving for free.
Distribution channels
We are an ec-store that will be selling our products online, we will only sell
through our website and deliver via email, or in case that the product is
bought in Tijuana or Los Angeles, we could arrange a personal delivery or the
buyer could pick up the merchandise at our warehouse. We will ship through
the mail or private delivering companies with an extra fee.
We could offer discounts to people that buy 10 or more jerseys as if it was a
retailer from us, but cases like this one could be discuss trough mail or phone
with the customer service department.
Sales forecast
In Mexico the soccer season starts every January and July, so this is we are
plan to star the year selling about a thousand jerseys per the first to months of
each tournament and then reduce the sale up to 200 jerseys per month. In the
US we expect something different, the season start in March and ends in
December, so our plan is to finish/start the year with great sales of jerseys
from the past season and then in the second semester of the year we expect to
start selling about a thousand jerseys for about the next 3 months and then
reduce the sales up to a hundred per month until the season ends.

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Bussines Plan

We are not counting in the sales forecast the sales of European clubs, we
expect to sell about five hundred jerseys from clubs across the Atlantic Ocean
per month specially from club like Barcelona, Real Madrid and Manchester
United.

The Jersey Spot

Bussines Plan

VI. Operational Plan

Production
We do not produce our jerseys, we just sell them, the only thing that we do in
our facilities is that if requested we customize them, for this we bought the
equipment to paste the names and numbers requested by the clients.
Location
For setting up our store we rented our main offices that are stablished in
Tijuana, Mexico, in our offices we also have our warehouse we we are going to
receive the jerseys, the space is not that big but it is perfect for us, because
we are just starting on this business, but we are planning to move if this we
become profitable.
Also there is going to be another warehouse in the city of Los Angeles to keep
there the jerseys that are going to be sold in the country.
We expect to spend about $5,000 dollars in setting our office and warehouses,
including material, rent and the initial hosting of the website.
Personnel
To start the business we will need to hire
1. Two customer service agents: they will help and answer all the doubts
or questions that clients have regarding our company or their products
via phone or email.
2. one warehouse manager: per warehouse (2): The man in charge of the
warehouse will be in charge of packing receiving and packing all the
new merchandise and the jerseys that are going to be delivered.
3. Jersey customizer: the task of this employee will be to make the custom
jerseys.
4. Two delivery guys: they will be the ones in charge of distributing the
jerseys to the post services or wherever the jerseys are going to be sent
to the buyer.
5. One secretary: she will keep the records of the expenses and incomes,
and help the administrator to with his schedule.
6. Web administrator: he will keep the store active, out of malware, and
updated.

The Jersey Spot

Bussines Plan

7. Administrator: he is the head of the company, he will take the big

decisions
8. Social media manager: his task is to promote the company and interact
with the possible costumer online and in person.
It is a requirement of the company that each employe needs to have a
bachelor degree related in the area they work except for the delivery guys.
The employees will be paid with all the benefits that the law of each
country requires including social security and other bonuses.
Inventory
Our warehouses will have each one an inventory of 300 jerseys each one
valuated in $50 dollars each one, having a value of $30,000 dollars in
merchandise that if it is not sold it can be returnes to the supplier for a half
of the investment, loosing only the other half.
The inventory turnover will depend of which jerseys are we talking to, we
will set a table of which jerseys sold the most and we need to have more of
those ones and which ones does not sell that much to reduce the quantity
of them in our inventory.
Suppliers
Our main suppliers will be Nike and Adidas because we will only sell
jerseys with the best quality in the market. Nike with its HQ in Beaverton,
will ship us directly from their factory in China while Adidas with their
America offices in Carlsbad, CA will ship us from their factory in
Philippines, depending were are going to sell those jerseys we will receive
the merchandise in San Francisco, CA or in Ensenada, BC.
We are going 50/50 with each company, our payment policy is that we pay
the first half when we make the order and the other at the end of the
month. Depending on the season we can calculate an approximate amount
of how much are we going to order from them but we try to mediate our
orders between both companies having them to ship us about $12,500
dollars of merchandise and the rest will be divided among other companies
like Puma and Under Armor,
Credit Policies

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Bussines Plan

The Jersey Spot will not make credit sale, all the sales must be completely
paid at the moment of the sale.

The Jersey Spot

Bussines Plan

VII. Startup Expenses and Capitalization

To best way to startup a business like this would be get a loan from the bank
for the amount $100,000 dollar from the bank trying to get the lowest interest
rate, I would take the debt for ten year. Because there are no investors at the
moment just me, the business will be registered as a limited liability company
in order to prevent financial problems myself if something goes wrong with
the business.
I considered a loan this big because it would be easier to solve any problem
that comes up the first year, I want to start very low profile with the company
may be trying to run it only locally and in social media to see how the people
responds to it, if its works it would have the proofs for the bank to get the loan
and star to making store happen.

The Jersey Spot

Appendix A

Bussines Plan

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Appendix B

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Appendix C

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Bibliography
THE WORLD'S BEST SELLING CLUB FOOTBALL SHIRTS. (2012, October 9).
Retrieved March 29, 2015, from
http://www.soccerbible.com/performance/football-apparel/2012/10/the-worlds-best-selling-club-football-shirts/
About us. (n.d.). Retrieved March 29, 2015, from
http://www.worldsoccershop.com/company.html
Innova Sport. (n.d.). Retrieved March 29, 2015, from
http://www.innovasport.com/
B2C e-commerce sales in Mexico from 2012 to 2017 (in billion U.S. dollars).
(n.d.). Retrieved March 29, 2015, from
http://www.statista.com/statistics/254558/b2c-e-commerce-sales-in-argentina/
All of the pictures displayed in the webpage are from the next links:
http://www.adidas.com/us/men-jerseys?sz=120&start=0
https://www.google.com.mx/search?
q=soccer+ads&rlz=1C1CAFA_enMX611MX611&espv=2&biw=1242&bih=57
7&source=lnms&tbm=isch&sa=X&ei=QvAYVZmkKtPtoAT6r4LIDA&ved=0CA
YQ_AUoAQ
https://www.google.com.mx/search?
q=soccer+ads&rlz=1C1CAFA_enMX611MX611&espv=2&biw=1242&bih=57
7&source=lnms&tbm=isch&sa=X&ei=QvAYVZmkKtPtoAT6r4LIDA&ved=0CA
YQ_AUoAQ#tbm=isch&q=+soccer+jersey+ads