Business Plan

shoes, bags, home appliances and car spare parts for potential clients in the Irkutsk markets such as ``Irkutskiy``, ``Fortuna``, and ``Complex``. Information about clothes and shoes will consist of the type of clothes, a season, the country of origin, the company name, the year of production, size, color, price range, and the location and number of the pavilion or the section of a market. Information about bags will consist of the type of bags, the company name, the country of origin, the year of production, price range, and the location and number of the pavilion or the section of a market. Information about home appliances will consist of the type of a home appliance, the company name, the year of production, size such as the length of diagonal for TV, price range, and the location and number of the pavilion or the section of a market. Information about car spare parts will consist of the type of a spare part, the company name, the type of a car and other spare parts, where this spare part is used, the year of production, price range, and the location and number of the pavilion or the section of a market.

The example of list: №TypeNameSizeSeasonCountry of originYear of productionColorPrice rangeLocationMarketPavelion1JeansAngara32Summer/FallRussia2001Red/Green/Blue/Black/other$20--$32“Irkutskiy”#1,#102, #1762JeansLee32Summer/FallChina2002All$30--$62“Irkutskiy”#17,#783…..…..…..…..…..…..…..…..…..…..4…..…..…..…..…..…..…..…..…..…..5…..…..…..…..…..…..…..…..…..….. The Database will be created in the FoxPro 5.0. It will be adopted for using through the local net and the Internet. The design of the Internet site will be developed with the Microsoft FrontPage. This database will be updated every second day. At first time it will be done manually by surveying the owners of the pavilions or the sections of a market, but then we plan to automate this process. The information will be deliver to customers on printed lists, if they get information directly in the market building from an operator. Next, it will be delivered electronically, if customers get information by using the Internet. Finally, it will be delivered by fax or orally, if customers get information by phone.

MARKET DATA To analyze and collect the market data I used as the statistical sources, so and my own experience and knowledge.

Target Market Information The shopping center “Irkutskiy” is the biggest nonfood market in Irkutsk, in which everybody can buy everything, what is used in everyday life, for example clothes, shoes, satchels, wallets, kitchen-ware and etc. It unites three shopping centers and contains up to 500 small shops. The shopping center “Irkutskiy” is the only big nonfood shopping center with such range of goods in Irkutsk and, consequently, serves most of the Irkutsk population. The shopping center ``Fortuna`` is the biggest car spare part market. The “Complex” is also a big nonfood market, but it is smaller than “Irkutskiy”. Social Environment Demographic The Irkutsk population today is 592,4 thousand people. (http://www.centerru.com/regions/regions.asp?id=7). The potential clients of the shopping center “Irkutskiy”, where I plan to open the first consulting center, and also the potential clients of my database are people from 18 to 60 years. It is 60% of the whole population 355,2 thousand people. (http://www.centerru.com/regions/diagrams/d1_r.html). I do not take into account people below 18 and over 60 because their parents or children usually maintain such people. The people over 60, who are not maintained by their children, usually have very small pension.

In addition, the shopping center “Irkutskiy” is oriented on the people and households from the middle class with revenues from 120,000 to 240,000 rubles per year. According to the statistical information and my knowledge it is approximately 10% of able-bodied citizens or 35,5 thousand people. (http://www.centerru.com/regions/regions.asp?type=reg&id=7). I also made a small survey, which tells that approximately once for three months respondents of such people make purchases of clothes, shoes, or some other similar products. I assumed that for year potential clients make 142 thousand purchases, 0,38 thousands a day. If every second makes such purchase in of the shopping center “Irkutskiy”, than there may be approximately 190 potential clients of my database a day according to demographic analysis.

Culture According to my survey and experience, I divided all potential clients into two categories. The first is people, who like go shopping and do it for rest. They are approximately 70% of respondents. The second is people, who do not like go shopping and do it as necessity 30%. The second category is my potential clients. So, I assumed that there are about 57 (190*30%) potential clients of my database a day.

Political Environment For last years, the local government has made attempts to increase the power of the consumer protection law. It reflects in the increasing quantity of people, who are content from purchases. As a result, more people are ready to make a purchase and companies increase their quality of service and products. It can be applied also to the shopping center “Irkutskiy” because for the last year more people have made purchases there than for previous years. These political attempts and other economical factors are the causes of the increasing quantity of clients in the shopping center “Irkutskiy”, and, consequently, my potential clients.

Economic Environment For last years, the level of revenues of population in Irkutsk is constantly increasing. (http://www.centerru.com/regions/regions.asp?type=reg&id=7). It increases the purchasing power of population. As a result, the shopping center «Irkutskiy» has constantly increasing quantity of clients that can be the potential clients of my database. The increase in the level of revenue results in the increase quantity of nonfood purchases because this sector of household is only 15% of all households revenues (about 60% of revenue are spent for food in Russia). It is significantly less than in developed countries. So, the increase of revenues increases the quantity of nonfood purchases.

Competitive Environment There is no such service in the shopping center «Irkutskiy» and other markets. So, there are no direct competitors. Indirect competitors are different print media that usually give brief information, where people can buy some kinds of clothes, shoes and etc. Such information is usually about one product or one company and does not give potential clients the picture of the whole market to choose the most appropriate product. So, these competitors can not influence my business very much.

Potential Problems 1. My assumption that every second purchase is made in the shopping center “Irkutskiy” may be overrated, so there are may be the smaller quantity of