EXCUTIVE SUMMARY JCP is a partnership between three individuals who share the love of high performance vehicles. Essentially, the love of making any vehicle performs better. JCP is a small business selling high performance equipment to the Kentuckiana area and mail order nationally. JCP prides itself on offering unprecedented customer attention with the goal of becoming the ultimate arena for all who love to create high performance vehicles.
THE MARKET JCP will be entering into an exciting, new and ever expanding market. Within the last ten years the demand for high performance parts has had an explosive growth. Presently, the national sales statistics show that the market is worth 2.5 billion annually and growing steadily. Recent movies, such as "Fast and the Furious" have had an immense impact on the market. The movie demonstrated every car lover's dream vehicle - the style, the look, the performance. After this movie came out statistics revealed a 33% increase in the market.
THE ORGANIZATION JCP is founded on the principle that a satisfied customer is a customer for life and is the foundation for financial health. Achievement of this principle will be working hard to ensure friendly, courteous, honest, quality customer service by meeting every expectation in every transaction. To maintain an active presence in the high performance community and relationship with customers by participating and sponsoring local and regional events as well as "do it yourself "clinics.
PRODUCT, SERVICES, AND DELIVERY JCP will be a brick and mortar company serving the local community as well as offering a national catalog mail order service. The catalog will be black and white format. All of the popular name brand products will be offered including generic, low -end and mid-end parts.
FINANCIAL JCP will be profitable from month one. Our projected first year sales is $400,000 with a 35% grow rate for the first five years.
JCP is an exciting customer focus opportunity within a 2.5 billion dollar market and growing steadily annually. High performance vehicles are becoming increasingly popular within the United States encompassing all ages. It is now "kewl" to have your vehicle "tricked out" even just for aesthetics. An investment in JCP is a high growth, reasonable risk opportunity.
OBJECTIVES 1. To make JCP the number one arena for the purchase of high performance parts in the Kentuckiana area for all high performance lovers.
2. To achieve an initial gross profit margin of at least 35%, increasing annually by 2%.
3. To gross $400,000 in sales the first year.
4. To maintain a solid growth rate of 35% for the first five years.
5. To focus and emphasize customer service.
MISSION JCP is dedicated to providing high performance products that combine quality performance with value pricing. We wish to build a strong foundation for lifelong partnership with our customers, ours employees, and our suppliers that support the interest and goals of all parties.
We will continually strife to accommodate what the customer's desires or needs, we will review what is available and what isn't available in the marketplace to provide the ultimate customer service.
Success is measured by customer satisfaction that they willing choose to purchase their high performance parts from JCP because we have met and exceeded their expectations in regards to price, service, and solution.
KEYS TO SUCCESS To succeed in this business, JCP must Ã¢ÂÂ¢ Be active participants in the high performance vehicle community ( eg. imports, muscular cars, racing cars, restoration ) by attending local, regional and national trade shows.
Ã¢ÂÂ¢ Deliver products promptly.
Ã¢ÂÂ¢ Personalized customer service.
COMPANY LOCATION JCP will be located at 40371 Charlestown Road, New Albany, Indiana. This location is on the way to becoming the new business district of Floyd County. The present location provides eacy access form 265, good visibility, ample parking, and room for expansion.
The area is rich in speedways, restoration clubs, and auto shows all within a 15 mile radius.
COMPANY FACILITY JCP purchased 5 acres with the plans to build a new 15,000 square foot building with, 10,0000 square feet going for part sales and 5000 square feet for a fully equipped auto service station.
This location will consist of a showroom, demo area, office space warehouse and service area. All deliveries and mail order shipments will be serviced from this location. Ample parking will be available for customers and auto shows.
COMPETITIVE COMPARISON Although, there are part warehouses in the area none have a full functioning service area for installing parts.
MARKET ANALYSIS SUMMARY Presently, the high performance parts and accessories market is expanding rapidly. This market includes auto racing: drag, stock car, open wheel, modified, sports car, auto cross, formula cars, tractor pulls, off road, as well as restoration and personal auto enhancement.
The total retail market for high performance products is 2.5 billion annually with a steady growth prediction.
A threat to JCP venture would be a competitor of similar nature entering the marketplace. Opportunity exists for the first entry into the marketplace with a well defined action plan, industry experience and the required capital.
TARGET MARKET SEGMENT STRATEGY Strategy is the key. JCP can save our customers time and money, with our pricing structure, assessing their needs and directing them toward the proper product. Not only are we focusing on the hardcore high performance customer but also the entry level novice. By offering our customer performance comparisons between high-end products and low to mid-end products in an honest ethical manner JCP will build customer loyalty, satisfaction, and word of mouth sales that will out gross our competitors.
MARKET NEEDS The most important needs are service, price, availability and customer satisfaction. The key will be to target the customer that know and desire these same needs.
MARKET TRENDS 1. High performance part sales, in general has been a rapid expanding market for the last ten years and growing, by focusing on the entry level novice we will be fulfilling the niche in the market.
2. Restoration of vehicles has become an ever expanding hobby for the "do it yourselfer". Statistics demonstrate a 20% increase in the last five years.
3.Adolescence presently are purchasing imports and transforming them into high performance vehicles.
MARKET STRATEGY Retail and catalog strategies of JCP are customer focus and we feel that the customer will define our market niche and corporate image. Specific strategies to be implemented are: 1. Print Ads- JCP plains on keeping its name in the public eye. We plan on running limited space ads in local high performance newspapers to keep our name and phone number in front of the customer.
2. Demos- Bringing in experts from for do it yourself demos from various suppliers for stocking their product will bring in the novice as will as the experienced customer 3. Press Release- The local speedway papers and local newspapers have offered to run releases and stories of concerning JCP's grand opening.
4. TV- Fox 41 and Fox in the Morning with Jim Bullet to televise the grand opening and feature auto shows through out the year.
5. Decals- JCP will have manufactured decals with out loge and information to distribute. We will also include a decal with all mail order shipments.
6. Word-of -Mouth- Continuous first hand great service and value pricing to all customers will ensure the spread of the word.
7. Grand Opening- PRICING STRATEGY Value is the keyword in today's economy. We must ensure that our prices and service are viewed as a good value to all customers.
Our pricing strategy is to be competitive with the various product categories with the added emphasis on service such as Dell and Gateway have done. Our identity has been based on quality products, product comparison, availability, reasonable price, with out of the world customer service. All products will be checked prior to shipment and all promised shipping dates will be met.
SALE STRATEGY JCP will be a new entry into the market place and we will have to prove ourselves to or customers to earn their respect and business. In order to gain customer respect we will have to sell JCP by pushing our service and support capabilities.
SALES FORCAST To achieve an initial gross profit margin of at least 35%, increasing annually by 2%.
Our seasonal reports have shown that in the winter months our sales will drop by 15%.
MANAGEMENT SUMMARY We are a small starting company ran by Jason Zajac, Pat Yost, and Chris Thomas, Friends, as a partnership.
JASON- PRESIDENT Well be main sales person, handle shipping and receiving, inventory management, and marketing and promotions of products PAT- FINACE AND PERSONAL RELATIONS Well act as our accountant. He will also be in charge of the computers in the building. He will assist with shipping, receiving, and sales and customers service related issues.
CHRIS- GARAGE TECHNICIAN Well be the one that runs the garage and help customers with installation needs.
PROS AND CONS OF PARTNERSHIPS PROS More financial resources- we have more then just one person having to put up all the money to front the business.
Shared management and pooled knowledge- we will be able to share are ideas and work to gather and put what knowledge each of us have to gather and make are business great,.
Longer survival- with a partnership the likely hood to succeeding is much greater than if I would have gone into the busy as a sol proprietorship CONS Unlimited liability- means that we well be liability for everything that happens in are shop and have to cover any damages that may occur.
Division of profits- this is we have to find a fair way to divide are profits so each of us gets the percent we deserve .
Disagreements among partners- we might not always agree on the way we want the business to go or be run Difficult to terminate- it will be harder to get out of the business because everyone or a majority will have to agree to shut down the business