HOWARD & DREAM SPORTS COMPANY BUSINESS PLAN 1
Howard& Dream Sports Company Business Plan
Howard & Dream Sports Company Business Plan
Howard &Dream, Inc. is a sports company that aims to create the first sportsentertainment network program along with selling sports equipment andclothing. The main plan will be to sell its merchandise over theInternet while it also offers a compelling content in the sportsentertainment to inspire sales. However, the company`s physicallocation is in California. The Howard & Dream`s unique productswill showcase exciting entertainment, events, products, adventuresand services associated with the sports program. Apart from offeringa more interactive shopping experience, the company will also caterto the worldwide audience of like-minded sports enthusiasts while itaims to build a synergistic sports entertainment community.
Howard &Dream, Inc. will create a brand in both its sports apparel stores andon its website at www.howard&dream.com that the overall sportsfraternity, clothing, and equipment industry will identify thecompany as the leader in the marketing, promotion and sales of itsproducts in both retail and online marketplace. The company willgenerate its revenues from four main sources: Banner advertising andintegrated content on the website, Product sponsors throughe-commerce commission fees, Premiere site placement through the saleof sponsorship packages, and elite sponsorships.
Howard &Dream, Inc. will provide a more comprehensive set of consumerservices that will particularly cater for its product sponsors andaudience. Some of these services include personalization, shopping,and buying or referring experience. The user and buyers will be ableto deploy recent technologies to incorporate personalized shoppingexperience any time of the day and night through orders addeliveries. The buyers will be directed to specific online merchantsto make their purchases by clicking on the preferred products.
TheCompany`s History and Description
Howard & Dreamis a new sports company incorporated in California the sportscompany seeks to move its physical location to the Summit County tobe much closer to a major population community. As much as its majoroperations are carried out over the Internet, the company`s physicallocation is very important in building its brand and access to thelocal community. Currently, its physical location in Ohio isoperational at an office building in Carlsbad, California. The sizeof the facility is a 5,000 square foot, which is enough for receivingand shipping of sports products, as well as an office space forhandling all the online operations. The facility will be expanded tofit in a 10,000 square feet to accommodate projected growth of thecompany`s operations.
The companydesigns produces, and markets sports apparel including balls, sportsjerseys, sports shoes, preferably basketball and football shoes. Allthe Howard & Dream`s sports products will be designed and qualitymanufactured to fit the sports target market of all active lifestylesports enthusiasts. The sports apparel will be designed and producedusing only the organic and natural materials in free sweatshopfacilities. All the unique designs that appeal to the entiredemographic in the region and globally will be woven into each of theproducts. The company has in mind to produce products of the higheststandards.
Howard& Dream Mission Statement
According toSellars & Business Expert Press (2009), a mission statement isthe critical element and standard of any company`s organizationalstrategy. All established companies come up with a mission statementwill serve as a fundamental guide to the growth and establishment ofset objectives. The mission statement ensures the company develops astrategic and tactical plan for its set goals and objectives.
Howard & DreamSports Company also has its set mission statement that will aim todrive the company`s day to day operations and future objectives: Themission statement is:
"To be a leader in the corporate world through proactivecommunity programs that is a reflection of the global family ofHoward & Dream, our consumers, and teammates."
"To bring innovation and inspiration to every design leader toassist athletes with skills achieve peak performances."
"To strive to be at the global forefront in the sports industrywith unique brands design on a passion for sporting lifestyle throughfour principles: design and innovation, consumer focused, globalorganization, and dedication to quality."
Howard& Dream`s Competence
Sellars &Business Expert Press (2009) observed that in every company, thereare competencies that play an important role in its growth. This isbecause competence is one of the factors that differentiates onecompany from the other, and without one, no company or organizationcan comfortably compete with one over the other. Every company isspecialized in its designs and products. Sellars & BusinessExpert Press (2009) gave an example of Honda, which is specializeddue to its engine efficiency, which is its core competency.Therefore, by mentioning Honda, people would have the perception thatthe company often has a quality engine.
Similarly, Howard& Dream Sports company as a core competency, which aims to takeadvantage of the industry because of its quality innovation. Thecompany`s core competence will take advantage of the competitivenature of the larger market share. Howard & Dream`s competence isto specialize in both the footwear and sports equipment. Thecompany`s R & D department will play a vital role due to itsinnovations in sports equipment and Howard & Dream footwear. Corecompetence also revolves around the comfortability of what theconsumers will experience by putting on their shoes and the qualitythat comes with the equipment, jerseys, and footwear.
Another distinctcompetence for Howard & Dream revolves around marketing,especially in brand power consumer awareness. The awareness comeswith the inability of other competitors to duplicate the "Howard& Dream" design of its products. The slogan and trademark ofthe company make it capitalize on the consumers looking for somethingnew in the market. The brand also emphasizes on competition, fitness,and sportsmanship, which will be identified on the purchases.
Howard& Dream SWOT Analysis
Strengths:Most of the company`s transactions are handled over the Internet withits physical location boasting of the high level of individualinteractivity. Virtually all of Howard & Dream`s productsincluding the footwear are manufactured within the region, whichmakes it easier regarding costs and finances. There are alsocontracted individuals that are assigned to handling customizedoperations. The low-cost operations of designing and producingcontinue to be the company`s boost on its bottom line.
Howard & Dreamalso boast of strong research, the design of products, anddevelopment efforts. All these are taken seriously, which is believedto be the company`s key for encroaching on the market share. The useof technological innovation is one of the company`s strengths in bothdesigning and manufacturing of its sports apparel, footwear, andathletics equipment. The technological innovation has seen a betterproduction of its products and reduction in injuries.
Weaknesses:Howard & Dream, Inc. will likely to face negative perceptions oflabor and its operations over the internet. The criticism is likelyto be intense when the brand grows and establish its branches acrossthe region. One thing to note is that its current physical locationdoes not meet the standards of other competitors in the market. Thelow wages paid to its workers continue to be a concern for the safetyof the location also becoming a weakness when operations are carriedout. The latest technology has also not been incorporated into thecompany`s systems, which becomes hard for its customers to navigatethrough the company`s website. The company aims to have control overthe market share but is jeopardized by the higher prices of itsproducts. Because it aims to raise enough capital for expansion,higher prices continue to make the products out of reach tocustomers.
Opportunities:One key opportunity for Howard & Dream, Inc. is the boom in theUnited States economy. The company has the resources and ability toexploit this economic opportunity. Howard & Dream, Inc. wouldtake advantage of the economic growth of higher income and sales.However, the company has not paid attention to other opportunities,for example, the demand for the latest styles and trends from the newgeneration of athletes and sportsmen.
The company will also take advantage of the country`s changingdemographics, with the continuous increase in Asians, AfricanAmerican, and Hispanics, which were not there before. This group ofindividuals comes with different tastes that Howard & Dream plansto satisfy. To exploit the opportunity, Howard & Dream, Inc. willfocus on the next generation of potential and loyal customers tocater for their demands. The company also plans to take advantage ofcarrying out most of its orders over the Internet, which most ofother companies have not exploited.
Threats:One major threat for Howard & Dream, Inc. is the situation of themarket. The biggest challenge is that the shoe market for athletes,for example, is already full of companies and different brands to apoint that there is little room for start-up companies. Because ofthe little room for growth, there is also limited room for productinnovation and expansion to claim some of the market shares forHoward & Dream. The competition for market share is anotherthreat that would face Howard & Dream. For instance, if all thecompanies in the same industry fought for the market share, chancesare those with minimum market share will completely lose the marketshare.
Howard& Dream Comparative and Target Market
Howard & Dreamtargets active athletes, sports enthusiast, and lifestyleparticipants. The company`s information on demographics of theinitial segment is aged between the ages of 10 to 40 years, both maleand female athletes, sports enthusiast, and lifestyle participants.These customers are athletes taking part in football, basketball, andathletics. Others are involved in snowboarding, skateboarding,motocross, surfing, and all the other extreme sports. The targetgroup either visits the physical address of the company and affiliatestores or would access the company`s website and make orders fordelivery. The target group could be referred to as the trend-settinggroup that influences others across the world and as more awarenessof the market growth.
Howard &Dream`s marketing efforts will involve execution of the company`sstrategies to help build awareness, advertisement, and drivingtraffic to the company`s website. The combination will involvepartnership and creative marketing towards pushing the sales andnoting down placement orders of current and potential customers. Thecompany will also use marketing tools such as affiliate marketingstrategies and web advertising to push for sales.
As part ofmarketing, the company`s site will change its design and layout ofthe site. The physical location will also undergo a makeover with itslogo change to adapt to the current nature of programming andstrategy. The company will also put on a branding strategy that willextend from the site to its location with sophistication and sponsorsidentification.
The managementteam plans to hire marketing and advertising team to carry outmassive marketing within the Internet world and the region. The teamwill be involved in the company`s programming, the design ofproducts, and brand development. As part of the marketing, the teamwill be involved in the outlining of its operations across theregion.
The players in theindustry, which include the customers and sponsors, would be reachedthrough corporate advertising. The corporate advertising will includeteam-building exercise and the appeal to sports-like nature, andcompetitiveness of the industry. The company will do this byrecruiting advertising corporate membership that will specialize ingiving out the discount package in every product sold. The potentialcorporate sponsorship will feel more comfortable with the company`sproducts and thus bring forth their employees to interact and shop.
Howard& Dream`s Budget
Each of the twofounding members invested in &55,000 each to help launch Howard &Dream, Inc. An additional $105,000 is required to guarantee properworking capital is kept up and running during the initial year ofoperations. During the first year of sales, it is anticipated to beover $700,000 with the expenses totaling $750,000. There will be aloss of $50,000 in its first year of sales and operations.
The company`smonthly costs are currently at an approximated $35,000, which is alsoapproximately 30%. The monthly breakeven will be over $50,000, andthus it is budgeted that the each unit will be sold at $45, whichwill require a total of 1050 units sold monthly to breakeven. Thebudget for the whole year will depend on the cash flow on a monthlybasis. For expenses, the company requires a total of $800,000 tocarry smoothly out its operations.
Howard &Dream, Inc. is one of the companies that are rooted in competition.From selling the finest sports apparel, equipment, and footwear, thecompany aims to command its market share through innovation, quality,and financial performance through dominance in a couple of years.Despite continual changes in the market share of athletic footwear,the company plans to continue expanding its product line, whilecreating a global brand.
Sellars, D., & Business Expert Press. (2009). Business planproject: A step-by-step guide to writing a business plan. NewYork, N.Y.] (222 East 46th Street, New York, NY 10017: BusinessExpert Press.